DermTech Reports First-Quarter 2023 Financial Results
- Covered lives increased to 126 million
- Cash runway through the third quarter of 2024
“In the last few months, we had excellent overall progress with payers and strong execution by our commercial organization,” said
First-Quarter 2023 Financial Results
- Billable sample volume grew 24 percent from the first quarter of 2022 to approximately 17,800.
-
Test revenue was
$3.4 million , down 3 percent from the first quarter of 2022, primarily due to changes in collection estimates for tests run in prior periods. -
Total revenue was
$3.5 million , a 6 percent decrease from the first quarter of 2022, driven by lower contract revenue. -
Cost of test revenue was
$3.8 million , a 7 percent increase from the first quarter of 2022, yielding a test gross margin of negative 11 percent, compared to 0 percent for the first quarter of 2022. -
Sales and marketing expenses were
$15.4 million , roughly flat versus the first quarter of 2022. -
Research and development expenses were
$4.4 million , a 30 percent decrease from the first quarter of 2022, largely due to lower employee-related and lab costs. -
General and administrative expenses were
$11.9 million , a 39 percent increase from the first quarter of 2022. The increase was driven by higher infrastructure costs due to the Company’s new facility and higher employee-related expenses. -
Net loss was
$31.3 million , or ($1.02 ) per share, which included$4.7 million of non-cash stock-based compensation expense, as compared to$30.1 million , or ($1.01 ) per share, for the first quarter of 2022, which included$3.9 million of non-cash stock-based compensation expense. -
Cash, cash equivalents, restricted cash and short-term marketable securities were
$108.4 million as ofMarch 31, 2023 .DermTech believes it has sufficient cash resources to fund its planned operations through the third quarter of 2024.
Other Business Highlights
-
In
March 2023 , the Company presented four new posters at the 2023American Academy of Dermatology (AAD) Annual Meeting. The four new posters included data on the development of a basal cell carcinoma diagnostic gene signature and evaluation of the DMT in higher Fitzpatrick Skin Types. The posters were titled:- Non-invasive detection of RNAs associated with basal cell carcinoma. Bahrami-Samani et al.
- Pigmented lesion assay performance in Fitzpatrick Phototypes IV-VI. Rock et al.
- Fitzpatrick Skin Phototypes: More than just skin deep. Xayavong et al.
- An analysis of the average age of skin cancer reported by subjects with Fitzpatrick Phototypes I through VI. Herron et al.
Conference Call Information
As previously announced, the Company will host a conference call to discuss its results at
About
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The expectations, estimates, and projections of
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Condensed Consolidated Statements of Operations |
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(in thousands, except share and per share data) |
||||||||
(Unaudited) |
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Three Months Ended |
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|
2023 |
|
2022 |
|||||
Revenues: |
|
|
||||||
Test revenue |
$ |
3,425 |
|
$ |
3,518 |
|
||
Contract revenue |
|
52 |
|
|
200 |
|
||
Total revenues |
|
3,477 |
|
|
3,718 |
|
||
Cost of revenues: |
|
|
||||||
Cost of test revenue |
|
3,791 |
|
|
3,530 |
|
||
Cost of contract revenue |
|
30 |
|
|
24 |
|
||
Total cost of revenues |
|
3,821 |
|
|
3,554 |
|
||
Gross (loss) profit |
|
(344 |
) |
|
164 |
|
||
Operating expenses: |
|
|
||||||
Sales and marketing |
|
15,417 |
|
|
15,443 |
|
||
Research and development |
|
4,409 |
|
|
6,338 |
|
||
General and administrative |
|
11,875 |
|
|
8,574 |
|
||
Total operating expenses |
|
31,701 |
|
|
30,355 |
|
||
Loss from operations |
|
(32,045 |
) |
|
(30,191 |
) |
||
Other income/(expense): |
|
|
||||||
Interest income, net |
|
782 |
|
|
66 |
|
||
Change in fair value of warrant liability |
|
(7 |
) |
|
17 |
|
||
Total other income |
|
775 |
|
|
83 |
|
||
Net loss |
$ |
(31,270 |
) |
$ |
(30,108 |
) |
||
Weighted average shares outstanding used in computing net loss per share, basic and diluted |
|
30,557,216 |
|
|
29,836,072 |
|
||
Net loss per share of common stock outstanding, basic and diluted |
$ |
(1.02 |
) |
$ |
(1.01 |
) |
|
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Condensed Consolidated Balance Sheets |
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(in thousands, except share and per share data) |
||||||||
(Unaudited) |
||||||||
|
|
|
||||||
Assets |
|
|
||||||
Current assets: |
|
|
||||||
Cash and cash equivalents |
$ |
48,438 |
|
$ |
77,757 |
|
||
Short-term marketable securities |
|
56,340 |
|
|
48,411 |
|
||
Accounts receivable |
|
3,690 |
|
|
4,172 |
|
||
Inventory |
|
1,574 |
|
|
1,757 |
|
||
Prepaid expenses and other current assets |
|
2,348 |
|
|
3,940 |
|
||
Total current assets |
|
112,390 |
|
|
136,037 |
|
||
Property and equipment, net |
|
6,262 |
|
|
6,375 |
|
||
Operating lease right-of-use assets |
|
54,800 |
|
|
56,007 |
|
||
Restricted cash |
|
3,501 |
|
|
3,488 |
|
||
Other assets |
|
168 |
|
|
168 |
|
||
Total assets |
$ |
177,121 |
|
$ |
202,075 |
|
||
Liabilities and Stockholders’ Equity |
|
|
||||||
Current liabilities: |
|
|
||||||
Accounts payable |
$ |
1,680 |
|
$ |
2,419 |
|
||
Accrued compensation |
|
7,556 |
|
|
7,894 |
|
||
Accrued liabilities |
|
4,807 |
|
|
3,464 |
|
||
Short-term deferred revenue |
|
242 |
|
|
109 |
|
||
Current portion of operating lease liabilities |
|
1,756 |
|
|
1,634 |
|
||
Current portion of finance lease obligations |
|
97 |
|
|
116 |
|
||
Total current liabilities |
|
16,138 |
|
|
15,636 |
|
||
Warrant liability |
|
12 |
|
|
5 |
|
||
Long-term finance lease obligations, less current portion |
|
49 |
|
|
53 |
|
||
Operating lease liabilities, long-term |
|
53,680 |
|
|
54,028 |
|
||
Total liabilities |
|
69,879 |
|
|
69,722 |
|
||
Stockholders’ equity: |
|
|
||||||
Common stock, |
|
3 |
|
|
3 |
|
||
Additional paid-in capital |
|
461,845 |
|
|
456,171 |
|
||
Accumulated other comprehensive loss |
|
(289 |
) |
|
(774 |
) |
||
Accumulated deficit |
|
(354,317 |
) |
|
(323,047 |
) |
||
Total stockholders’ equity |
|
107,242 |
|
|
132,353 |
|
||
Total liabilities and stockholders’ equity |
$ |
177,121 |
|
$ |
202,075 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230504005970/en/
(858) 291-1647
steve.kunszabo@dermtech.com
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