|
Delaware
|
| |
8731
|
| |
27-0480143
|
|
|
(State or other jurisdiction of
incorporation or organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer
Identification Number) |
|
|
Barry I. Grossman
Lijia Sanchez Ellenoff Grossman & Schole LLP 1345 Avenue of the Americas New York, New York 10105 Telephone: (212) 370-1300 |
| |
Brad L. Shiffman
Blank Rome LLP 1271 Avenue of the Americas New York, NY 10020 Telephone: (212) 885-5000 |
|
|
Large accelerated filer
☐
|
| |
Accelerated filer
☐
|
|
|
Non-accelerated filer
☒
|
| |
Smaller reporting company
☒
|
|
| | | |
Emerging growth company
☒
|
|
Title of Each Class of Security Being Registered
|
| |
Proposed Maximum
Aggregate Offering Price(1)(2) |
| |
Amount of
Registration Fee(3) |
| ||||||
Common Stock, $0.0001 par value
|
| | | $ | 22,999,997.70 | | | | | $ | 2,509.30 | | |
Common Stock underlying Representative’s Warrants, $0.0001 par value
|
| | | $ | 1,149,999.89 | | | | | $ | 125.46 | | |
Total
|
| | | $ | 24,149,997.59 | | | | | $ | 2,634.76 | | |
|
PRELIMINARY PROSPECTUS
|
| | SUBJECT TO COMPLETION | | | DATED MAY 27, 2021 | |
| | |
Per Share
|
| |
Total
|
|
Initial public offering price
|
| |
|
| |
|
|
Underwriting discount(1)
|
| | | | | | |
Proceeds, before expenses, to iSpecimen Inc.
|
| | | | | | |
| | |
Page
|
| |||
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| | | | 49 | | | |
| | | | 52 | | | |
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| | | | 95 | | | |
| | | | 101 | | | |
| | | | 106 | | | |
| | | | 108 | | | |
| | | | 110 | | | |
| | | | 119 | | | |
| | | | 121 | | | |
| | | | 124 | | | |
| | | | 130 | | | |
| | | | 130 | | | |
| | | | 130 | | | |
| | | | F-1 | | |
| | |
Three Months Ended March 31,
|
| |
Years Ended December 31,
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
(Unaudited)
|
| | | | ||||||||||||||||||
Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue
|
| | | $ | 2,963,807 | | | | | $ | 1,711,660 | | | | | $ | 8,184,106 | | | | | $ | 4,298,350 | | |
Total operating expenses
|
| | | | 3,906,451 | | | | | | 2,157,193 | | | | | | 10,590,486 | | | | | | 8,178,439 | | |
Loss from operations
|
| | | | (942,644) | | | | | | (445,533) | | | | | | (2,406,380) | | | | | | (3,880,089) | | |
Other expense, net
|
| | | | (3,020,847) | | | | | | (1,192,446) | | | | | | (2,245,704) | | | | | | (1,003,961) | | |
Net loss
|
| | | | (3,963,491) | | | | | | (1,637,979) | | | | | | (4,652,084) | | | | | | (4,727,050) | | |
Net loss per common share – basic and diluted(1)
|
| | | $ | (4.23) | | | | | $ | (1.75) | | | | | $ | (4.97) | | | | | $ | (5.05) | | |
Weighted average common shares outstanding – basic and diluted(1)
|
| | | | 936,213 | | | | | | 936,213 | | | | | | 936,213 | | | | | | 936,096 | | |
Pro forma net loss (unaudited)(2)
|
| | | $ | (4,419,905) | | | | | | | | | | | | | | | | | | | | |
Pro forma net loss per common share – basic and diluted
(unaudited)(2) |
| | | $ | (1.10) | | | | | | | | | | | | | | | | | | | | |
Pro forma weighted average common shares
outstanding – basic and diluted (unaudited)(2) |
| | | | 4,018,129 | | | | | | | | | | | | | | | | | | | | |
| | |
As of March 31, 2021
|
| |||||||||||||||
| | |
Actual
|
| |
Pro Forma
|
| |
Pro Forma
As Adjusted(2) |
| |||||||||
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | $ | 355,126 | | | | | $ | 855,126 | | | | | $ | 16,286,861 | | |
Working capital(1)
|
| | | | (22,751,850) | | | | | | (5,591,620) | | | | | | 12,308,378 | | |
Total assets
|
| | | | 5,823,755 | | | | | | 6,323,755 | | | | | | 21,755,490 | | |
Total liabilities
|
| | | | 25,870,101 | | | | | | 9,209,871 | | | | | | 6,741,607 | | |
Convertible preferred stock
|
| | | | 11,173,076 | | | | | | — | | | | | | — | | |
Total stockholders’ (deficit) equity
|
| | | | (31,219,422) | | | | | | (2,886,116) | | | | | | 15,013,882 | | |
| | |
As of March 31, 2021
|
| |||||||||||||||
| | |
Actual
|
| |
Pro Forma
|
| |
Pro Forma
As Adjusted(1) |
| |||||||||
| | |
(Unaudited)
|
| |||||||||||||||
Cash
|
| | | $ | 355,126 | | | | | $ | 855,126 | | | | | $ | 16,286,861 | | |
Convertible notes payable, related parties, net of unamortized debt discount and debt issuance costs
|
| | | $ | 5,491,899 | | | | | $ | — | | | | | $ | — | | |
Bridge notes payable, net of debt discount
|
| | | | 4,185,172 | | | | | | 2,480,077 | | | | | | 2,480,077 | | |
Bridge notes payable, related parties, net of debt discount
|
| | | | 1,735,094 | | | | | | 246,582 | | | | | | 246,582 | | |
Accrued interest
|
| | | | 4,253,987 | | | | | | 2,468,263 | | | | | | — | | |
Derivative liability for embedded conversion features on convertible notes payable
|
| | | | 2,527,000 | | | | | | — | | | | | | — | | |
Derivative liability for embedded conversion feature on bridge notes payable and bridge notes, related parties
|
| | | | 3,662,000 | | | | | | — | | | | | | — | | |
Total debt
|
| | | | 21,855,152 | | | | | | 5,194,922 | | | | | | 2,726,659 | | |
Series B convertible preferred stock, $0.0001 par value, 3,200,000 shares authorized, 572,465 shares issued and outstanding, actual; no shares outstanding pro forma; and no shares outstanding pro forma as adjusted
|
| | | | 7,999,997 | | | | | | — | | | | | | — | | |
| | |
As of March 31, 2021
|
| |||||||||||||||
| | |
Actual
|
| |
Pro Forma
|
| |
Pro Forma
As Adjusted(1) |
| |||||||||
| | |
(Unaudited)
|
| |||||||||||||||
Series A-1 convertible preferred stock, $0.0001 par value, 556,550 shares authorized, 100,365 issued and outstanding, actual; no shares outstanding pro forma; and no shares outstanding pro forma as adjusted
|
| | | | 561,041 | | | | | | — | | | | | | — | | |
Series A convertible preferred stock, $0.0001 par value, 3,427,871 shares authorized, 618,182 issued and outstanding, actual; no shares outstanding pro forma; and no shares outstanding pro forma as adjusted
|
| | | | 2,612,038 | | | | | | — | | | | | | — | | |
Total convertible preferred stock
|
| | | | 11,173,076 | | | | | | — | | | | | | — | | |
Stockholders’ Deficit: | | | | | | | | | | | | | | | | | | | |
Common stock, $0.0001 par value, 16,000,000 shares authorized; 967,213 issued and 936,213 shares outstanding, actual; 4,018,129 shares outstanding pro forma; and 6,240,351 shares outstanding pro forma as adjusted
|
| | | | 94 | | | | | | 402 | | | | | | 624 | | |
Additional paid-in capital
|
| | | | 1,801,734 | | | | | | 30,591,146 | | | | | | 48,490,922 | | |
Treasury stock, at cost, 31,000 shares
|
| | | | (172) | | | | | | (172) | | | | | | (172) | | |
Accumulated deficit
|
| | | | (33,021,078) | | | | | | (33,477,492) | | | | | | (33,477,492) | | |
Total stockholders’ (deficit) equity:
|
| | | | (31,219,422) | | | | | | (2,886,116) | | | | | | 15,013,882 | | |
Total Capitalization:
|
| | | $ | 1,808,806 | | | | | $ | 2,308,806 | | | | | $ | 17,740,541 | | |
|
|
Assumed initial public offering price per share of common stock
|
| |
|
| | | $ | 9.00 | | | |||
|
Historical net tangible book value (deficit) per share as of March 31, 2021
|
| | | $ | (33.35) | | | | | | | | |
|
Increase per share attributed to the conversion of outstanding preferred stock, Convertible Notes, and Bridge Notes
|
| | | | 32.63 | | | | | | | | |
|
Pro forma net tangible book value per share as of March 31, 2021 before this offering
|
| | | | (0.72) | | | | | | | | |
|
Increase in pro forma as adjusted net tangible book value per share attributable to investors in this offering
|
| | | | 3.13 | | | | | | | | |
|
Pro forma as adjusted net tangible book value per share after this offering
|
| | | | | | | | | | 2.41 | | |
|
Dilution per share to new common stock investors in this offering
|
| | | | | | | | | $ | 6.59 | | |
| | |
Shares purchased
|
| |
Total consideration
|
| |
Average price
per share |
| |||||||||||||||||||||
| | |
Number
|
| |
Percentage
|
| |
Amount
|
| |
Percentage
|
| ||||||||||||||||||
Existing Shareholders
|
| | | | 4,018,129 | | | | | | 64% | | | | | $ | 511,186 | | | | | | 2% | | | | | $ | 0.13 | | |
New Investors
|
| | | | 2,222,222 | | | | | | 36 | | | | | | 19,999,998 | | | | | | 98 | | | | | | 9.00 | | |
Total
|
| | | | 6,240,351 | | | | | | 100% | | | | | $ | 20,511,184 | | | | | | 100% | | | | | $ | 3.29 | | |
| | |
Three Months Ended March 31,
|
| |
Years Ended December 31,
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
(Unaudited)
|
| | | | ||||||||||||||||||
Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue
|
| | | $ | 2,963,807 | | | | | $ | 1,711,660 | | | | | $ | 8,184,106 | | | | | $ | 4,298,350 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 1,623,651 | | | | | | 654,268 | | | | | | 3,585,477 | | | | | | 2,127,900 | | |
Technology
|
| | | | 409,951 | | | | | | 426,712 | | | | | | 1,426,473 | | | | | | 993,329 | | |
Sales and marketing
|
| | | | 529,387 | | | | | | 431,640 | | | | | | 1,775,347 | | | | | | 1,413,059 | | |
Supply development
|
| | | | 111,576 | | | | | | 114,605 | | | | | | 495,967 | | | | | | 792,778 | | |
Fulfillment
|
| | | | 269,096 | | | | | | 215,171 | | | | | | 853,450 | | | | | | 914,633 | | |
General and administrative
|
| | | | 962,790 | | | | | | 314,797 | | | | | | 2,453,772 | | | | | | 1,936,740 | | |
Total operating expenses
|
| | | | 3,906,451 | | | | | | 2,157,193 | | | | | | 10,590,486 | | | | | | 8,178,439 | | |
Loss from operations
|
| | | | (942,644) | | | | | | (445,533) | | | | | | (2,406,380) | | | | | | (3,880,089) | | |
Other income (expense), net | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | (853,147) | | | | | | (587,669) | | | | | | (2,096,795) | | | | | | (1,724,450) | | |
Change in fair value of derivative liability on convertible notes
|
| | | | (154,000) | | | | | | (605,000) | | | | | | (159,000) | | | | | | 551,000 | | |
Change in fair value of derivative liability
on bridge notes and bridge notes, related parties |
| | | | (48,000) | | | | | | — | | | | | | — | | | | | | — | | |
Loss on extinguishment of bridge notes and bridge notes, related parties
|
| | | | (2,750,171) | | | | | | — | | | | | | — | | | | | | — | | |
Gain on extinguishment of note payable
|
| | | | 788,156 | | | | | | — | | | | | | — | | | | | | — | | |
Other income
|
| | | | (3,732) | | | | | | — | | | | | | 9,654 | | | | | | 168,859 | | |
Interest income
|
| | | | 47 | | | | | | 223 | | | | | | 437 | | | | | | 630 | | |
Other expense, net
|
| | | | (3,020,847) | | | | | | (1,192,446) | | | | | | (2,245,704) | | | | | | (1,003,961) | | |
Net loss before benefit from income taxes
|
| | | | (3,963,491) | | | | | | (1,637,979) | | | | | | (4,652,084) | | | | | | (4,884,050) | | |
Benefit from income taxes
|
| | | | — | | | | | | — | | | | | | — | | | | | | 157,000 | | |
Net loss
|
| | | $ | (3,963,491) | | | | | $ | (1,637,979) | | | | | $ | (4,652,084) | | | | | $ | (4,727,050) | | |
Net loss per common share – basic and diluted(1)
|
| | | $ | (4.23) | | | | | $ | (1.75) | | | | | $ | (4.97) | | | | | $ | (5.05) | | |
| | |
Three Months Ended March 31,
|
| |
Years Ended December 31,
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
(Unaudited)
|
| | | | ||||||||||||||||||
Weighted average common shares outstanding – basic and diluted(1)
|
| | | | 936,213 | | | | | | 936,213 | | | | | | 936,213 | | | | | | 936,096 | | |
Pro forma net loss (unaudited)(2)
|
| | | $ | (4,419,905) | | | | | | | | | | | | | | | | | | | | |
Pro forma net loss per common share – basic
and diluted (unaudited)(2) |
| | | $ | (1.10) | | | | | | | | | | | | | | | | | | | | |
Pro forma weighted average common shares outstanding – basic and diluted (unaudited)(2)
|
| | | $ | (4,018,129) | | | | | | | | | | | | | | | | | | | | |
|
| | |
As of
March 31, 2021 |
| |
As of December 31,
|
| ||||||||||||
| | |
2020
|
| |
2019
|
| ||||||||||||
| | |
(Unaudited)
|
| | | |||||||||||||
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | $ | 355,126 | | | | | $ | 695,909 | | | | | $ | 53,893 | | |
Working capital(1)
|
| | | | (22,751,850) | | | | | | (18,663,321) | | | | | | (14,179,599) | | |
Total assets
|
| | | | 5,823,755 | | | | | | 6,209,696 | | | | | | 4,214,588 | | |
Accrued interest
|
| | | | 4,253,987 | | | | | | 3,696,944 | | | | | | 1,745,515 | | |
Convertible notes payable, related parties, net of unamortized debt discount and debt issuance costs
|
| | | | 5,491,899 | | | | | | 5,490,811 | | | | | | 5,350,278 | | |
Derivative liability for embedded conversion features on convertible notes
|
| | | | 2,527,000 | | | | | | 2,373,000 | | | | | | 2,214,000 | | |
Bridge notes payable, net of debt discount and debt issuance costs
|
| | | | 4,185,172 | | | | | | 4,589,228 | | | | | | 3,586,326 | | |
Bridge notes payable, related parties, net of debt discount
|
| | | | 1,735,094 | | | | | | 1,905,000 | | | | | | 1,655,000 | | |
Derivative liability for embedded conversion feature on bridge notes payable and bridge notes, related parties
|
| | | | 3,662,000 | | | | | | — | | | | | | — | | |
Note payable, current portion
|
| | | | — | | | | | | 604,109 | | | | | | — | | |
Note payable, net of current portion
|
| | | | — | | | | | | 178,899 | | | | | | — | | |
Convertible preferred stock
|
| | | | 11,173,076 | | | | | | 11,173,076 | | | | | | 11,173,076 | | |
| | |
As of
March 31, 2021 |
| |
As of December 31,
|
| ||||||||||||
| | |
2020
|
| |
2019
|
| ||||||||||||
| | |
(Unaudited)
|
| | | |||||||||||||
Total stockholders’ deficit
|
| | | | (31,219,422) | | | | | | (27,277,967) | | | | | | (22,718,749) | | |
| | |
Three Months Ended March 31,
|
| |
Change
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
Dollars
|
| |
Percentage
|
| ||||||||||||
| | |
(unaudited)
|
| | | | | | | | | | | | | |||||||||
Revenue
|
| | | $ | 2,963,807 | | | | | $ | 1,711,660 | | | | | $ | 1,252,147 | | | | | | 73% | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of Revenue
|
| | | | 1,623,651 | | | | | | 654,268 | | | | | | 969,383 | | | | | | 148% | | |
Technology
|
| | | | 409,951 | | | | | | 426,712 | | | | | | (16,761) | | | | | | (4)% | | |
Sales and marketing
|
| | | | 529,387 | | | | | | 431,640 | | | | | | 97,747 | | | | | | 23% | | |
Supply development
|
| | | | 111,576 | | | | | | 114,605 | | | | | | (3,029) | | | | | | (3)% | | |
Fulfillment
|
| | | | 269,096 | | | | | | 215,171 | | | | | | 53,925 | | | | | | 25% | | |
General and administrative
|
| | | | 962,790 | | | | | | 314,797 | | | | | | 647,993 | | | | | | 206% | | |
Total operating expenses
|
| | | | 3,906,451 | | | | | | 2,157,193 | | | | | | 1,749,258 | | | | | | 81% | | |
Loss from operations
|
| | | | (942,644) | | | | | | (445,533) | | | | | | (497,111) | | | | | | (112)% | | |
Other income (expense), net | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | (853,147) | | | | | | (587,669) | | | | | | (265,478) | | | | | | (45)% | | |
Change in fair value of derivative liability on
convertible notes |
| | | | (154,000) | | | | | | (605,000) | | | | | | 451,000 | | | | | | 75% | | |
Change in fair value of derivative liability on
bridge notes and bridge notes, related parties |
| | | | (48,000) | | | | | | — | | | | | | (48,000) | | | | | | (100)% | | |
Loss on extinguishment of bridge notes and bridge notes, related parties
|
| | | | (2,750,171) | | | | | | — | | | | | | (2,750,171) | | | | | | (100)% | | |
Gain on extinguishment of note payable
|
| | | | 788,156 | | | | | | — | | | | | | 788,156 | | | | | | 100% | | |
Other income
|
| | | | (3,732) | | | | | | — | | | | | | (3,732) | | | | | | (100)% | | |
Interest income
|
| | | | 47 | | | | | | 223 | | | | | | (176) | | | | | | (79)% | | |
Other expense, net
|
| | | | (3,020,847) | | | | | | (1,192,446) | | | | | | (1,828,401) | | | | | | (153)% | | |
Benefit from income taxes
|
| | | | — | | | | | | — | | | | | | — | | | | | | 100% | | |
Net loss
|
| | | $ | (3,963,491) | | | | | $ | (1,637,979) | | | | | $ | (2,325,512) | | | | | | (142)% | | |
| | |
Years Ended December 31,
|
| |
Change
|
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
Dollars
|
| |
Percentage
|
| ||||||||||||
Revenue
|
| | | $ | 8,184,106 | | | | | $ | 4,298,350 | | | | | $ | 3,885,756 | | | | | | 90% | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 3,585,477 | | | | | | 2,127,900 | | | | | | 1,457,577 | | | | | | 68% | | |
Technology
|
| | | | 1,426,473 | | | | | | 993,329 | | | | | | 433,144 | | | | | | 44% | | |
Sales and marketing
|
| | | | 1,775,347 | | | | | | 1,413,059 | | | | | | 362,288 | | | | | | 26% | | |
Supply development
|
| | | | 495,967 | | | | | | 792,778 | | | | | | (296,811) | | | | | | (37)% | | |
Fulfillment
|
| | | | 853,450 | | | | | | 914,633 | | | | | | (61,183) | | | | | | (7)% | | |
General and administrative
|
| | | | 2,453,772 | | | | | | 1,936,740 | | | | | | 517,032 | | | | | | 27% | | |
Total operating expenses
|
| | | | 10,590,486 | | | | | | 8,178,439 | | | | | | 2,412,047 | | | | | | 29% | | |
Loss from operations
|
| | | | (2,406,380) | | | | | | (3,880,089) | | | | | | 1,473,709 | | | | | | 38% | | |
Other income (expense), net | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | (2,096,795) | | | | | | (1,724,450) | | | | | | (372,345) | | | | | | (22)% | | |
Change in fair value of derivative liability
|
| | | | (159,000) | | | | | | 551,000 | | | | | | (710,000) | | | | | | (129)% | | |
Other income
|
| | | | 9,654 | | | | | | 168,859 | | | | | | (159,205) | | | | | | (94)% | | |
Interest income
|
| | | | 437 | | | | | | 630 | | | | | | (193) | | | | | | (31)% | | |
Other expense, net
|
| | | | (2,245,704) | | | | | | (1,003,961) | | | | | | (1,241,743) | | | | | | (124)% | | |
Benefit from income taxes
|
| | | | — | | | | | | 157,000 | | | | | | (157,000) | | | | | | (100)% | | |
Net loss
|
| | | $ | (4,652,084) | | | | | $ | (4,727,050) | | | | | $ | 74,966 | | | | | | 2% | | |
| | |
Three Months Ended March 31,
|
| |
Change
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
Dollars
|
| |
Percentage
|
| ||||||||||||
| | |
(unaudited)
|
| | | | | | | | | | | | | |||||||||
Net cash flows used in operating activities
|
| | | $ | (126,249) | | | | | $ | (426,011) | | | | | $ | 299,762 | | | | | | 70% | | |
Net cash flows used in investing activities
|
| | | | (214,534) | | | | | | (260,204) | | | | | | 45,670 | | | | | | 18% | | |
Net cash flows provided by financing activities
|
| | | | — | | | | | | 1,000,000 | | | | | | (1,000,000) | | | | | | (100)% | | |
Net (decrease) increase in cash and cash equivalents
|
| | | $ | (340,783) | | | | | $ | 313,785 | | | | | $ | (654,568) | | | | | | | | |
| | |
Years Ended December 31,
|
| |
Change
|
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
Dollars
|
| |
Percentage
|
| ||||||||||||
Net cash flows used in operating activities
|
| | | $ | (288,380) | | | | | $ | (2,679,900) | | | | | $ | 2,391,520 | | | | | | 89% | | |
Net cash flows used in investing activities
|
| | | | (1,102,612) | | | | | | (1,475,245) | | | | | | 372,633 | | | | | | 25% | | |
Net cash flows provided by financing activities
|
| | | | 2,033,008 | | | | | | 3,078,674 | | | | | | (1,045,666) | | | | | | (34)% | | |
Net increase (decrease) in cash and cash equivalents
|
| | | $ | 642,016 | | | | | $ | (1,076,471) | | | | | $ | 1,718,487 | | | | | | | | |
| | |
Three Months Ended March 31,
|
| |
Years Ended December 31,
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
(unaudited)
|
| | | | | | | | | | | | | |||||||||
Net loss
|
| | | $ | (3,963,491) | | | | | $ | (1,637,979) | | | | | $ | (4,652,084) | | | | | $ | (4,727,050) | | |
Income tax benefit
|
| | | | — | | | | | | — | | | | | | — | | | | | | (157,000) | | |
Change in fair value of derivative liability on convertible notes
|
| | | | 154,000 | | | | | | 605,000 | | | | | | 159,000 | | | | | | (551,000) | | |
Change in fair value of derivative liability on
bridge notes and bridge notes, relates parties |
| | | | 48,000 | | | | | | — | | | | | | — | | | | | | — | | |
Loss on extinguishment of bridge notes and bridge notes, related parties
|
| | | | 2,750,171 | | | | | | — | | | | | | — | | | | | | — | | |
Gain on extinguishment of note payable
|
| | | | (788,156) | | | | | | — | | | | | | — | | | | | | — | | |
Interest expense
|
| | | | 853,147 | | | | | | 587,669 | | | | | | 2,096,795 | | | | | | 1,724,450 | | |
Depreciation & amortization
|
| | | | 246,359 | | | | | | 220,848 | | | | | | 819,687 | | | | | | 634,965 | | |
Share-based compensation
|
| | | | 22,036 | | | | | | 22,045 | | | | | | 92,866 | | | | | | 360,379 | | |
Adjusted EBITDA
|
| | | $ | (677,934) | | | | | $ | (202,417) | | | | | $ | (1,483,736) | | | | | $ | (2,715,256) | | |
| | | | | | | | |
December 31,
|
| |||||||||
| | |
March 31, 2021
|
| |
2020
|
| |
2019
|
| |||||||||
Americas
|
| | | | 77.3% | | | | | | 92.28% | | | | | | 97.7% | | |
Europe, Middle East, and Africa (“EMEA”)
|
| | | | 21.6% | | | | | | 2.31% | | | | | | 0.2% | | |
Asia Pacific (“APAC”)
|
| | | | 1.1% | | | | | | 5.41% | | | | | | 2.1% | | |
| | | | | | | | |
December 31,
|
| |||||||||
| | |
March 31, 2021
|
| |
2020
|
| |
2019
|
| |||||||||
Americas
|
| | | | 95.7% | | | | | | 94.4% | | | | | | 77.5% | | |
Europe, Middle East, and Africa (EMEA)
|
| | | | 4.3% | | | | | | 1.8% | | | | | | 22.5% | | |
Asia Pacific (APAC)
|
| | | | 0.0% | | | | | | 3.8% | | | | | | 0.0% | | |
| | |
As of December 31,
|
| |
CAGR
2016-20 |
| |
As of
March 31, 2021 |
| |||||||||||||||||||||||||||||||||
Sales Pipeline Stage — Totals
(in thousands) |
| |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||||||||||||||
Inquiries
|
| | | $ | 76,765 | | | | | $ | 54,266 | | | | | $ | 26,530 | | | | | $ | 26,236 | | | | | $ | 11,057 | | | | | | 62% | | | | | $ | 22,534 | | |
Quotes
|
| | | $ | 64,333 | | | | | $ | 36,569 | | | | | $ | 17,851 | | | | | $ | 16,464 | | | | | $ | 6,763 | | | | | | 76% | | | | | $ | 15,060 | | |
Purchase Orders
|
| | | $ | 14,850 | | | | | $ | 12,065 | | | | | $ | 8,228 | | | | | $ | 5,185 | | | | | $ | 2,109 | | | | | | 63% | | | | | $ | 5,514 | | |
Revenue | | | | $ | 8,184 | | | | | $ | 4,298 | | | | | $ | 4,395 | | | | | $ | 3,067 | | | | | $ | 1,448 | | | | | | 53% | | | | | $ | 2,964 | | |
| | |
As of December 31,
|
| |
CAGR
2016-20 |
| |
As of
March 31, 2021 |
| |||||||||||||||||||||||||||||||||
Sales Pipeline Stage — Averages (in
thousands) |
| |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||||||||||||||
Inquiries
|
| | | $ | 56.5 | | | | | $ | 42.1 | | | | | $ | 23.2 | | | | | $ | 17.8 | | | | | $ | 18.8 | | | | | | 32% | | | | | $ | 59.5 | | |
Quotes
|
| | | $ | 78.7 | | | | | $ | 47.1 | | | | | $ | 34.1 | | | | | $ | 20.3 | | | | | $ | 16.5 | | | | | | 48% | | | | | $ | 77.6 | | |
Purchase Orders
|
| | | $ | 33.8 | | | | | $ | 35.5 | | | | | $ | 26.3 | | | | | $ | 9.8 | | | | | $ | 7.0 | | | | | | 48% | | | | | $ | 53.5 | | |
| | |
As of December 31,
|
| |
CAGR
2016-20 |
| |
As of
March 31, 2021 |
| |||||||||||||||||||||||||||||||||
Average Selling Price
|
| |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||||||||||||||
Per Specimen Shipped
|
| | | $ | 325.47 | | | | | $ | 329.18 | | | | | $ | 163.98 | | | | | $ | 95.46 | | | | | $ | 35.48 | | | | | | 74% | | | | | $ | 311.88 | | |
| | |
As of December 31,
|
| |
CAGR
2016-20 |
| |
As of
March 31, 2021 |
| |||||||||||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||||||||||||||
Cumulative Number of Customer Organizations
|
| | | | 330 | | | | | | 230 | | | | | | 172 | | | | | | 135 | | | | | | 69 | | | | | | 48% | | | | | | 349 | | |
Number of Active Customer Organizations
|
| | | | 172 | | | | | | 108 | | | | | | 96 | | | | | | 104 | | | | | | 56 | | | | | | 32% | | | | | | 175 | | |
Name
|
| |
Age
|
| |
Position
|
| |||
Christopher Ianelli
|
| | | | 54 | | | | Chief Executive Officer, President, and Director | |
Jill Mullan
|
| | | | 56 | | | |
Chief Operating Officer, Secretary, Treasurer, and Director
|
|
Benjamin Bielak
|
| | | | 51 | | | | Chief Information Officer | |
Tracy Curley
|
| | | | 59 | | | | Chief Financial Officer | |
Andrew L. Ross
|
| | | | 72 | | | | Chairman of the Board | |
George “Bud” Scholl
|
| | | | 61 | | | | Director | |
Steven Gullans
|
| | | | 67 | | | | Director | |
John L. Brooks III
|
| | | | 69 | | | | Director Nominee | |
Margaret H. Lawrence
|
| | | | 45 | | | | Director Nominee | |
Name and Principal Position
|
| |
Year
|
| |
Salary
($) |
| |
Bonus
($) |
| |
Option
awards ($)(1) |
| |
All other
compensation ($) |
| |
Total
($) |
| ||||||||||||||||||
Christopher Ianelli,
|
| | | | 2020 | | | | | $ | 250,000 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 250,000 | | |
Chief Executive, President and Director
|
| | | | 2019 | | | | | $ | 250,000 | | | | | $ | — | | | | | $ | 297,587 | | | | | $ | — | | | | | $ | 547,587 | | |
Jill Mullan,
|
| | | | 2020 | | | | | $ | 230,000 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 230,000 | | |
Chief Operating Officer, Secretary and Treasurer
|
| | | | 2019 | | | | | $ | 230,000 | | | | | $ | — | | | | | $ | 397,671 | | | | | $ | — | | | | | $ | 627,617 | | |
Benjamin Bielak
|
| | | | 2020 | | | | | $ | 220,000 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 220,000 | | |
Chief Information Officer
|
| | | | 2019 | | | | | $ | 220,000 | | | | | $ | — | | | | | $ | 25,500 | | | | | $ | — | | | | | $ | 245,500 | | |
Tracy Curley(2)
|
| | | | 2020 | | | | | $ | 105,600 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 105,600 | | |
Chief Financial Officer
|
| | | | 2019 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Plan
|
| |
Number of
Shares Issued |
| |
Number of
Shares Reserved for Issuance |
| |
Number of
Shares underlying Outstanding Options or Warrants |
| |
Number of
Shares Remaining Available for Future Issuance |
| ||||||||||||
2010 Stock Incentive Plan
|
| | | | 156,603 | | | | | | 270,513 | | | | | | 113,898 | | | | | | — | | |
2013 Stock Incentive Plan
|
| | | | 59,491 | | | | | | 309,029 | | | | | | 137,949 | | | | | | 111,589 | | |
| | |
Option Awards
|
| ||||||||||||||||||||||||
Name
|
| |
Number of
securities underlying unexercised options (#) exercisable |
| |
Number of
securities underlying unexercised options (#) unexercisable |
| |
Equity incentive
plan awards; Number of securities underlying unexercised unearned options (#) |
| |
Option exercise
price ($) |
| |
Option
expiration date |
| ||||||||||||
Christopher Ianelli
|
| | | | 2,254 | | | | | | 2,254 | | | | | | — | | | | | $ | 1.00 | | | |
January 31, 2029
|
|
Christopher Ianelli
|
| | | | 48,106 | | | | | | — | | | | | | — | | | | | $ | 1.00 | | | |
July 12, 2029
|
|
Jill Mullan
|
| | | | 19,296 | | | | | | — | | | | | | — | | | | | $ | 1.00 | | | |
June 29, 2026
|
|
Jill Mullan
|
| | | | 2,254 | | | | | | 2,254 | | | | | | — | | | | | $ | 1.00 | | | |
January 31, 2029
|
|
Jill Mullan
|
| | | | 65,792 | | | | | | — | | | | | | — | | | | | $ | 1.00 | | | |
July 12, 2029
|
|
Benjamin Bielak
|
| | | | 14,653 | | | | | | 8,791 | | | | | | — | | | | | $ | 1.00 | | | |
June 14, 2028
|
|
Benjamin Bielak
|
| | | | 2,254 | | | | | | 2,254 | | | | | | — | | | | | $ | 1.00 | | | |
January 31, 2029
|
|
Name and Principal Position
|
| |
Year
|
| |
Salary
($) |
| |
Bonus
($) |
| |
Option
awards ($)(1) |
| |
All other
compensation ($) |
| |
Total
($) |
| ||||||||||||||||||
Andrew Ross,
|
| | | | 2020 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Chairman of the Board
|
| | | | 2019 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Bud Scholl
|
| | | | 2020 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Director
|
| | | | 2019 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Steven Gullans
|
| | | | 2020 | | | | | $ | — | | | | | $ | — | | | | | $ | 51,750 | | | | | $ | — | | | | | $ | — | | |
Director
|
| | | | 2019 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
| | |
Shares beneficially
owned prior to the offering |
| |
Shares beneficially
owned after the offering |
| ||||||||||||||||||||||||||||||||||||||||||
Name of beneficial
owner |
| |
Common
stock |
| |
Options
exercisable within 60 days |
| |
Aggregate
number of shares beneficially owned |
| |
%
|
| |
Assuming
no exercise of option to purchase additional shares |
| |
%
|
| |
Assuming
exercise of option to purchase additional shares |
| |
%
|
| ||||||||||||||||||||||||
5% or more stockholders:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Anna-Maria & Stephen Kellen Foundation(1)
|
| | | | 196,785(2) | | | | | | — | | | | | | 196,785 | | | | | | 8.7% | | | | | | 566,154(7) | | | | | | 9.0% | | | | | | 566,154(7) | | | | | | 8.6% | | |
OBF Investments
|
| | | | 250,456(3) | | | | | | — | | | | | | 250,456 | | | | | | 11.1% | | | | | | 766,169(8) | | | | | | 12.2% | | | | | | 766,169(8) | | | | | | 11.6% | | |
Named executive officers and directors:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Andrew L. Ross
|
| | | | 854,847(4) | | | | | | — | | | | | | 854,847 | | | | | | 38.0% | | | | | | 1,257,938(9) | | | | | | 20.1% | | | | | | 1,257,938(9) | | | | | | 19.1% | | |
Christopher Ianelli
|
| | | | 343,357(5) | | | | | | 50,642 | | | | | | 393,999 | | | | | | 17.1% | | | | | | 393,999 | | | | | | 6.2% | | | | | | 393,999 | | | | | | 5.9% | | |
Jill Mullan
|
| | | | 49,566(6) | | | | | | 87,625 | | | | | | 137,191 | | | | | | 5.9% | | | | | | 204,750(10) | | | | | | 3.2% | | | | | | 204,750(10) | | | | | | 3.1% | | |
Steven Gullans
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
John L. Brooks III
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Margaret H. Lawrence
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
All current directors and executive officers as a group (6 persons)
|
| | | | 1,247,770 | | | | | | 138,267 | | | | | | 1,386,037 | | | | | | 58.0% | | | | | | 1,856,687 | | | | | | 29.0% | | | | | | 1,856,687 | | | | | | 27.6% | | |
Underwriters
|
| |
Number of Shares
|
| |||
ThinkEquity, a division of Fordham Financial Management, Inc.
|
| |
|
| |||
| | | | | | | |
Total
|
| | | | 2,222,222 | | |
| | | | | | | | |
Total
|
| |||||||||
| | |
Per Share
|
| |
Without Over-Allotment
|
| |
With Over-Allotment
|
| |||||||||
Public offering price
|
| | | $ | | | | | $ | | | | | $ | | | |||
Underwriting discount (7.5%)
|
| | | $ | | | | | $ | | | | | $ | | | |||
Proceeds, before expenses, to us
|
| | | $ | | | | | $ | | | | | $ | | |
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| | | | | F-28 | | | |
| | | | | F-29 | | | |
| | | | | F-30 | | | |
| | | | | F-31 | | | |
| | | | | F-32 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
ASSETS
|
| | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash
|
| | | $ | 695,909 | | | | | $ | 53,893 | | |
Accounts receivable, net of allowance for doubtful accounts of $108,096 and $0 at December 31, 2020 and 2019, respectively
|
| | | | 1,526,392 | | | | | | 833,580 | | |
Accounts receivable-unbilled
|
| | | | 652,761 | | | | | | 454,576 | | |
Prepaid expenses and other current assets
|
| | | | 417,929 | | | | | | 134,135 | | |
Tax credit receivable, current portion
|
| | | | 179,376 | | | | | | 104,478 | | |
Total current assets
|
| | | | 3,472,367 | | | | | | 1,580,662 | | |
Property and equipment, net
|
| | | | 75,589 | | | | | | 119,921 | | |
Internally developed software, net
|
| | | | 2,634,139 | | | | | | 2,306,882 | | |
Tax credit receivable, net of current portion
|
| | | | — | | | | | | 179,522 | | |
Security deposits
|
| | | | 27,601 | | | | | | 27,601 | | |
Total assets
|
| | | $ | 6,209,696 | | | | | $ | 4,214,588 | | |
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND
STOCKHOLDERS’ DEFICIT |
| | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 1,792,432 | | | | | $ | 737,794 | | |
Accrued expenses
|
| | | | 810,910 | | | | | | 471,348 | | |
Accrued interest
|
| | | | 3,696,944 | | | | | | 1,745,515 | | |
Convertible notes payable, related parties, net of unamortized debt discount
and debt issuance costs |
| | | | 5,490,811 | | | | | | 5,350,278 | | |
Derivative liability for embedded conversion features
|
| | | | 2,373,000 | | | | | | 2,214,000 | | |
Bridge notes payable, net of debt issuance costs
|
| | | | 4,589,228 | | | | | | 3,586,326 | | |
Bridge notes payable, related parties
|
| | | | 1,905,000 | | | | | | 1,655,000 | | |
Note payable, current portion
|
| | | | 604,109 | | | | | | — | | |
Deferred revenue
|
| | | | 873,254 | | | | | | — | | |
Total current liabilities
|
| | | | 22,135,688 | | | | | | 15,760,261 | | |
Note payable, net of current portion
|
| | | | 178,899 | | | | | | — | | |
Total liabilities
|
| | | | 22,314,587 | | | | | | 15,760,261 | | |
Commitments and contingencies | | | | | | | | | | | | | |
Series B convertible preferred stock, $0.0001 par value, 3,200,000 shares
authorized, 572,465 shares issued and outstanding at December 31, 2020 and 2019 (preference in liquidation of $10,604,240) |
| | | | 7,999,997 | | | | | | 7,999,997 | | |
Series A-1 convertible preferred stock, $0.0001 par value, 556,550 shares authorized, 100,365 issued and outstanding at December 31, 2020 and 2019 (preference in liquidation of $780,170)
|
| | | | 561,041 | | | | | | 561,041 | | |
Series A convertible preferred stock, $0.0001 par value, 3,427,871 shares authorized, 618,182 issued and outstanding at December 31, 2020 and 2019 (preference in liquidation of $3,935,804)
|
| | | | 2,612,038 | | | | | | 2,612,038 | | |
Total convertible preferred stock
|
| | | | 11,173,076 | | | | | | 11,173,076 | | |
Stockholders’ Deficit: | | | | | | | | | | | | | |
Common stock, $0.0001 par value, 16,000,000 shares authorized, 967,213 issued and 936,213 outstanding at December 31, 2020 and 2019
|
| | | | 94 | | | | | | 94 | | |
Additional paid-in capital
|
| | | | 1,779,698 | | | | | | 1,686,832 | | |
Treasury stock, 31,000 shares at December 31, 2020 and 2019, at cost
|
| | | | (172) | | | | | | (172) | | |
Accumulated deficit
|
| | | | (29,057,587) | | | | | | (24,405,503) | | |
Total stockholders’ deficit
|
| | | | (27,277,967) | | | | | | (22,718,749) | | |
Total liabilities, convertible preferred stock and stockholders’ deficit
|
| | | $ | 6,209,696 | | | | | $ | 4,214,588 | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Revenue
|
| | | $ | 8,184,106 | | | | | $ | 4,298,350 | | |
Operating expenses: | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 3,585,477 | | | | | | 2,127,900 | | |
Technology
|
| | | | 1,426,473 | | | | | | 993,329 | | |
Sales and marketing
|
| | | | 1,775,347 | | | | | | 1,413,059 | | |
Supply development
|
| | | | 495,967 | | | | | | 792,778 | | |
Fulfillment
|
| | | | 853,450 | | | | | | 914,633 | | |
General and administrative
|
| | | | 2,453,772 | | | | | | 1,936,740 | | |
Total operating expenses
|
| | | | 10,590,486 | | | | | | 8,178,439 | | |
Loss from operations
|
| | | | (2,406,380) | | | | | | (3,880,089) | | |
Other income (expense), net | | | | | | | | | | | | | |
Interest expense
|
| | | | (2,096,795) | | | | | | (1,724,450) | | |
Change in fair value of derivative liability
|
| | | | (159,000) | | | | | | 551,000 | | |
Other income
|
| | | | 9,654 | | | | | | 168,859 | | |
Interest income
|
| | | | 437 | | | | | | 630 | | |
Other expense, net
|
| | | | (2,245,704) | | | | | | (1,003,961) | | |
Net loss before benefit from income taxes
|
| | | | (4,652,084) | | | | | | (4,884,050) | | |
Benefit from income taxes
|
| | | | — | | | | | | 157,000 | | |
Net loss
|
| | | $ | (4,652,084) | | | | | $ | (4,727,050) | | |
Net loss per share | | | | | | | | | | | | | |
Basic and diluted
|
| | | $ | (4.97) | | | | | $ | (5.05) | | |
Weighted average common shares outstanding | | | | | | | | | | | | | |
Basic and diluted
|
| | | | 936,213 | | | | | | 936,096 | | |
| | |
Series B
Convertible Preferred Stock |
| |
Series A-1
Convertible Preferred Stock |
| |
Series A
Convertible Preferred Stock |
| | |
Common Stock
|
| |
Treasury Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Deficit |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2019
|
| | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 935,651 | | | | | $ | 94 | | | | | | 31,000 | | | | | $ | (172) | | | | | $ | 1,322,779 | | | | | $ | (19,746,453) | | | | | $ | (18,423,752) | | |
Cumulative effect from adoption of ASC 606
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 68,000 | | | | | | 68,000 | | |
Issuance of common stock through exercise of stock options
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | 562 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,674 | | | | | | — | | | | | | 3,674 | | |
Share-based compensation
expense |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 360,379 | | | | | | — | | | | | | 360,379 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,727,050) | | | | | | (4,727,050) | | |
Balance at December 31, 2019
|
| | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 936,213 | | | | | $ | 94 | | | | | | 31,000 | | | | | | (172) | | | | | $ | 1,686,832 | | | | | $ | (24,405,503) | | | | | $ | (22,718,749) | | |
Share-based compensation
expense |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 92,866 | | | | | | — | | | | | | 92,866 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,652,084) | | | | | | (4,652,084) | | |
Balance at December 31, 2020
|
| | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 936,213 | | | | | $ | 94 | | | | | | 31,000 | | | | | $ | (172) | | | | | $ | 1,779,698 | | | | | $ | (29,057,587) | | | | | $ | (27,277,967) | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (4,652,084) | | | | | $ | (4,727,050) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Share-based compensation
|
| | | | 92,866 | | | | | | 360,379 | | |
Amortization of internally developed software
|
| | | | 774,929 | | | | | | 577,605 | | |
Depreciation and amortization of property and equipment
|
| | | | 44,758 | | | | | | 57,360 | | |
Bad debt expense
|
| | | | 108,096 | | | | | | — | | |
Amortization of discount and debt issuance costs on convertible notes
|
| | | | 143,435 | | | | | | 551,993 | | |
Change in fair value of derivative liability
|
| | | | 159,000 | | | | | | (551,000) | | |
Change in operating assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable
|
| | | | (800,908) | | | | | | 192,253 | | |
Accounts receivable-unbilled
|
| | | | (198,185) | | | | | | (305,576) | | |
Prepaid expenses and other current assets
|
| | | | (226,374) | | | | | | 13,170 | | |
Tax credit receivable
|
| | | | 104,624 | | | | | | (157,000) | | |
Accounts payable
|
| | | | 1,054,638 | | | | | | 40,882 | | |
Accrued expenses
|
| | | | 282,142 | | | | | | 94,725 | | |
Accrued interest
|
| | | | 1,951,429 | | | | | | 1,172,359 | | |
Deferred revenue
|
| | | | 873,254 | | | | | | — | | |
Net cash used in operating activities
|
| | | | (288,380) | | | | | | (2,679,900) | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | | | |
Purchase of property and equipment
|
| | | | (426) | | | | | | (28,183) | | |
Capitalization of internally developed software
|
| | | | (1,102,186) | | | | | | (1,447,062) | | |
Net cash used in investing activities
|
| | | | (1,102,612) | | | | | | (1,475,245) | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | | | |
Proceeds from issuance of bridge notes payable
|
| | | | 1,250,000 | | | | | | 3,075,000 | | |
Proceeds from issuance of note payable
|
| | | | 783,008 | | | | | | — | | |
Proceeds from exercise of stock options
|
| | | | — | | | | | | 3,674 | | |
Net cash provided by financing activities
|
| | | | 2,033,008 | | | | | | 3,078,674 | | |
Net increase (decrease) in cash
|
| | | | 642,016 | | | | | | (1,076,471) | | |
Cash at beginning of period
|
| | | | 53,893 | | | | | | 1,130,364 | | |
Cash at end of period
|
| | | $ | 695,909 | | | | | $ | 53,893 | | |
Supplemental disclosure of cash flow information: | | | | | | | | | | | | | |
Cash paid for interest
|
| | | $ | — | | | | | $ | — | | |
Income taxes paid
|
| | | $ | — | | | | | $ | — | | |
Supplemental disclosure of non-cash investing and financing activities: | | | | | | | | | | | | | |
Debt issuance costs included in accrued expenses
|
| | | $ | — | | | | | $ | (3,862) | | |
Deferred offering costs included in accrued expenses
|
| | | $ | (57,420) | | | | | $ | — | | |
| | |
2020
|
| |
2019
|
| ||||||
Specimens – contracts with customers
|
| | | $ | 8,086,324 | | | | | $ | 4,215,002 | | |
Shipping and other
|
| | | | 97,782 | | | | | | 83,348 | | |
Revenue
|
| | | $ | 8,184,106 | | | | | $ | 4,298,350 | | |
Asset category
|
| |
Estimated Useful Life
|
|
Website
|
| | 3 years | |
Computer equipment and purchased software
|
| | 5 years | |
Equipment
|
| | 5 years | |
Furniture and fixtures
|
| | 5 years | |
Leasehold improvements
|
| |
Shorter of useful life of asset or lease term
|
|
| | |
2020
|
| |
2019
|
| ||||||
Shares issuable upon conversion of preferred stock
|
| | | | 1,291,012 | | | | | | 1,291,012 | | |
Shares issuable upon exercise of stock options
|
| | | | 251,847 | | | | | | 224,884 | | |
Shares issuable upon exercise of warrants to purchase common stock
|
| | | | 23,309 | | | | | | 23,309 | | |
| | |
2020
|
| |
2019
|
| ||||||
Website
|
| | | $ | 105,376 | | | | | $ | 105,376 | | |
Computer equipment and purchased software
|
| | | | 84,589 | | | | | | 84,481 | | |
Equipment
|
| | | | 35,449 | | | | | | 35,134 | | |
Furniture and fixtures
|
| | | | 87,184 | | | | | | 87,184 | | |
Leasehold improvements
|
| | | | 24,935 | | | | | | 24,935 | | |
Total property and equipment
|
| | | | 337,533 | | | | | | 337,110 | | |
Accumulated depreciation
|
| | | | (261,944) | | | | | | (217,189) | | |
Total property and equipment, net
|
| | | $ | 75,589 | | | | | $ | 119,921 | | |
| | |
Fair value at December 31, 2020
|
| |||||||||||||||||||||
| | |
Total
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liability
|
| | | $ | 2,373,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,373,000 | | |
Total liabilities
|
| | | $ | 2,373,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,373,000 | | |
| | |
Fair value at December 31, 2019
|
| |||||||||||||||||||||
| | |
Total
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liability
|
| | | $ | 2,214,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,214,000 | | |
Total liabilities
|
| | | $ | 2,214,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,214,000 | | |
| | |
2020
|
| |
2019
|
| ||||||
Balance, beginning of period
|
| | | $ | 2,214,000 | | | | | $ | 2,765,000 | | |
Loss (gain) included in earnings
|
| | | | 159,000 | | | | | | (551,000) | | |
Balance, end of period
|
| | | $ | 2,373,000 | | | | | $ | 2,214,000 | | |
Years Ended December 31,
|
| |
Operating Leases
|
| |||
2021
|
| | | $ | 161,062 | | |
2022
|
| | | | 163,158 | | |
2023
|
| | | | 165,254 | | |
2024
|
| | | | 27,601 | | |
Total
|
| | | $ | 517,075 | | |
| | |
2020
|
| |
2019
|
|
Assumptions: | | | | | | | |
Risk-free interest rate
|
| |
0.30% – 1.41%
|
| |
1.59% – 2.58%
|
|
Expected term (in years)
|
| |
5.32 – 6.14
|
| |
5.00 – 6.14
|
|
Expected volatility
|
| |
43.11% – 50.14%
|
| |
41.00% – 43.92%
|
|
Expected dividend yield
|
| |
—%
|
| |
—%
|
|
| | |
Options
Outstanding |
| |
Weighted Average
Exercise Price |
| |
Weighted Average
Remaining Contractual Term in Years |
| |||||||||
Balance at January 1, 2019
|
| | | | 90,799 | | | | | $ | 2.57 | | | | | | 8.78 | | |
Granted
|
| | | | 162,016 | | | | | $ | 1.13 | | | | | | | | |
Exercised
|
| | | | (562) | | | | | $ | 6.52 | | | | | | | | |
Cancelled/forfeited
|
| | | | (27,369) | | | | | $ | 6.09 | | | | | | | | |
Balance at December 31, 2019
|
| | | | 224,884 | | | | | $ | 1.08 | | | | | | 8.78 | | |
Granted
|
| | | | 43,259 | | | | | $ | 1.00 | | | | | | | | |
Exercised
|
| | | | — | | | | | $ | 1.00 | | | | | | | | |
Cancelled/forfeited
|
| | | | (16,296) | | | | | $ | 4.20 | | | | | | | | |
Balance at December 31, 2020
|
| | | | 251,847 | | | | | $ | 1.00 | | | | | | 8.06 | | |
Options exercisable at December 31, 2020
|
| | | | 180,716 | | | | | $ | 1.00 | | | | | | 7.85 | | |
| | |
2020
|
| |
2019
|
| ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Operating loss carryforwards
|
| | | $ | 6,600,000 | | | | | $ | 5,600,000 | | |
Other
|
| | | | 700,000 | | | | | | 1,000,000 | | |
Total deferred tax assets
|
| | | | 7,300,000 | | | | | | 6,600,000 | | |
Deferred tax liability: | | | | | | | | | | | | | |
Intangibles
|
| | | | (250,000) | | | | | | (150,000) | | |
Total deferred tax liabilities
|
| | | | (250,000) | | | | | | (150,000) | | |
Net deferred tax assets before valuation allowance
|
| | | | 7,050,000 | | | | | | 6,450,000 | | |
Valuation allowance
|
| | | | (7,050,000) | | | | | | (6,450,000) | | |
Net deferred tax asset
|
| | | $ | — | | | | | $ | — | | |
| | |
2020
|
| |
2019
|
| ||||||
Reconciliation to statutory rates
|
| | | | | | | | | | | | |
Expected federal income taxes benefit at statutory rates
|
| | | | (21)% | | | | | | (21)% | | |
Expected state tax benefit at statutory rates, net of federal benefit
|
| | | | (8) | | | | | | (8) | | |
Change in valuation allowance
|
| | | | 29 | | | | | | 29 | | |
Income tax expense (benefit)
|
| | | | —% | | | | | | —% | | |
| | |
March 31,
2021 |
| |
December 31,
2020 |
| ||||||
| | |
(unaudited)
|
| | | | | | | |||
ASSETS
|
| | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash
|
| | | $ | 355,126 | | | | | $ | 695,909 | | |
Accounts receivable – unbilled
|
| | | | 1,079,734 | | | | | | 652,761 | | |
Accounts receivable, net of allowance for doubtful accounts of $128,748 and $108,096
at March 31, 2021 and December 31, 2020, respectively |
| | | | 580,196 | | | | | | 1,526,392 | | |
Due from factor
|
| | | | 495,735 | | | | | | — | | |
Prepaid expenses and other current assets
|
| | | | 428,084 | | | | | | 417,929 | | |
Tax credit receivable, current portion
|
| | | | 179,376 | | | | | | 179,376 | | |
Total current assets
|
| | | | 3,118,251 | | | | | | 3,472,367 | | |
Property and equipment, net
|
| | | | 64,459 | | | | | | 75,589 | | |
Internally developed software, net
|
| | | | 2,613,444 | | | | | | 2,634,139 | | |
Security deposits
|
| | | | 27,601 | | | | | | 27,601 | | |
Total assets
|
| | | $ | 5,823,755 | | | | | $ | 6,209,696 | | |
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND
STOCKHOLDERS’ DEFICIT |
| | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 2,091,562 | | | | | $ | 1,792,432 | | |
Accrued expenses
|
| | | | 1,119,322 | | | | | | 810,910 | | |
Accrued interest
|
| | | | 4,253,987 | | | | | | 3,696,944 | | |
Convertible notes payable, related parties, net of unamortized debt discount and debt issuance costs
|
| | | | 5,491,899 | | | | | | 5,490,811 | | |
Derivative liability for embedded conversion features on convertible notes payable
|
| | | | 2,527,000 | | | | | | 2,373,000 | | |
Bridge notes payable, net of debt discount and debt issuance costs
|
| | | | 4,185,172 | | | | | | 4,589,228 | | |
Bridge notes payable, related parties, net of debt discount
|
| | | | 1,735,094 | | | | | | 1,905,000 | | |
Derivative liability for embedded conversion feature on bridge notes payable and bridge notes, related parties
|
| | | | 3,662,000 | | | | | | — | | |
Note payable, current portion
|
| | | | — | | | | | | 604,109 | | |
Deferred revenue
|
| | | | 804,065 | | | | | | 873,254 | | |
Total current liabilities
|
| | | | 25,870,101 | | | | | | 22,135,688 | | |
Note payable, net of current portion
|
| | | | — | | | | | | 178,899 | | |
Total liabilities
|
| | | | 25,870,101 | | | | | | 22,314,587 | | |
Commitments and contingencies | | | | | | | | | | | | | |
Series B convertible preferred stock, $0.0001 par value, 3,200,000 shares authorized, 572,465 shares issued and outstanding at March 31, 2021 and December 31, 2020 (preference in liquidation of $10,722,596)
|
| | | | 7,999,997 | | | | | | 7,999,997 | | |
Series A-1 convertible preferred stock, $0.0001 par value, 556,550 shares authorized, 100,365 issued and outstanding at March 31, 2021 and December 31, 2020 (preference in liquidation of $788,470)
|
| | | | 561,041 | | | | | | 561,041 | | |
Series A convertible preferred stock, $0.0001 par value, 3,427,871 shares authorized, 618,182 issued and outstanding at March 31, 2021 and December 31, 2020 (preference in liquidation of $3,974,448)
|
| | | | 2,612,038 | | | | | | 2,612,038 | | |
Total convertible preferred stock
|
| | | | 11,173,076 | | | | | | 11,173,076 | | |
Stockholders’ Deficit: | | | | | | | | | | | | | |
Common stock, $0.0001 par value, 16,000,000 shares authorized, 967,213 issued and 936,213 outstanding at March 31, 2021 and December 31, 2020
|
| | | | 94 | | | | | | 94 | | |
Additional paid-in capital
|
| | | | 1,801,734 | | | | | | 1,779,698 | | |
Treasury stock, 31,000 shares at March 31, 2021 and December 31, 2020, at cost
|
| | | | (172) | | | | | | (172) | | |
Accumulated deficit
|
| | | | (33,021,078) | | | | | | (29,057,587) | | |
Total stockholders’ deficit
|
| | | | (31,219,422) | | | | | | (27,277,967) | | |
Total liabilities, convertible preferred stock and stockholders’ deficit
|
| | | $ | 5,823,755 | | | | | $ | 6,209,696 | | |
| | |
Three Months Ended March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Revenue
|
| | | $ | 2,963,807 | | | | | $ | 1,711,660 | | |
Operating expenses: | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 1,623,651 | | | | | | 654,268 | | |
Technology
|
| | | | 409,951 | | | | | | 426,712 | | |
Sales and marketing
|
| | | | 529,387 | | | | | | 431,640 | | |
Supply development
|
| | | | 111,576 | | | | | | 114,605 | | |
Fulfillment
|
| | | | 269,096 | | | | | | 215,171 | | |
General and administrative
|
| | | | 962,790 | | | | | | 314,797 | | |
Total operating expenses
|
| | | | 3,906,451 | | | | | | 2,157,193 | | |
Loss from operations
|
| | | | (942,644) | | | | | | (445,533) | | |
Other income (expense), net | | | | | | | | | | | | | |
Interest expense
|
| | | | (853,147) | | | | | | (587,669) | | |
Change in fair value of derivative liability on convertible notes
|
| | | | (154,000) | | | | | | (605,000) | | |
Change in fair value of derivative liability on bridge notes and bridge notes, related parties
|
| | | | (48,000) | | | | | | — | | |
Loss on extinguishment of bridge notes and bridge notes, related parties
|
| | | | (2,750,171) | | | | | | — | | |
Gain on extinguishment of note payable
|
| | | | 788,156 | | | | | | — | | |
Other income
|
| | | | (3,732) | | | | | | — | | |
Interest income
|
| | | | 47 | | | | | | 223 | | |
Other expense, net
|
| | | | (3,020,847) | | | | | | (1,192,446) | | |
Net loss before benefit from income taxes
|
| | | | (3,963,491) | | | | | | (1,637,979) | | |
Benefit from income taxes
|
| | | | — | | | | | | — | | |
Net loss
|
| | | $ | (3,963,491) | | | | | $ | (1,637,979) | | |
Net loss per share | | | | | | | | | | | | | |
Basic and diluted
|
| | | $ | (4.23) | | | | | $ | (1.75) | | |
Weighted average common shares outstanding | | | | | | | | | | | | | |
Basic and diluted
|
| | | | 936,213 | | | | | | 936,213 | | |
| | |
Series B
Convertible Preferred Stock |
| |
Series A-1
Convertible Preferred Stock |
| |
Series A
Convertible Preferred Stock |
| | |
Common Stock
|
| |
Treasury Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Deficit |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2020
|
| | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 935,651 | | | | | $ | 94 | | | | | | 31,000 | | | | | $ | (172) | | | | | $ | 1,686,832 | | | | | $ | (24,405,503) | | | | | $ | (22,718,749) | | |
Share-based compensation expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 22,045 | | | | | | — | | | | | | 22,045 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,637,979) | | | | | | (1,637,979) | | |
Balance at March 31, 2020 (unaudited)
|
| | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 935,651 | | | | | $ | 94 | | | | | | 31,000 | | | | | $ | (172) | | | | | $ | 1,708,877 | | | | | $ | (26,043,482) | | | | | $ | (24,334,683) | | |
Balance at January 1, 2021
|
| | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 936,213 | | | | | $ | 94 | | | | | | 31,000 | | | | | $ | (172) | | | | | $ | 1,779,698 | | | | | $ | (29,057,587) | | | | | $ | (27,277,967) | | |
Share-based compensation expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 22,036 | | | | | | — | | | | | | 22,036 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (3,963,491) | | | | | | (3,963,491) | | |
Balance at March 31, 2021 (unaudited)
|
| | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 936,213 | | | | | $ | 94 | | | | | | 31,000 | | | | | $ | (172) | | | | | $ | 1,801,734 | | | | | $ | (33,021,078) | | | | | $ | (31,219,422) | | |
| | |
Three Months Ended March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (3,963,491) | | | | | $ | (1,637,979) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Share-based compensation
|
| | | | 22,036 | | | | | | 22,045 | | |
Amortization of internally developed software
|
| | | | 235,229 | | | | | | 206,508 | | |
Depreciation of property and equipment
|
| | | | 11,130 | | | | | | 14,340 | | |
Bad debt expense
|
| | | | 20,652 | | | | | | — | | |
Amortization of discount and debt issuance costs on convertible notes
|
| | | | 1,088 | | | | | | 137,998 | | |
Amortization of discount on bridge notes
|
| | | | 289,867 | | | | | | — | | |
Change in fair value of derivative liabilities
|
| | | | 202,000 | | | | | | 605,000 | | |
Loss on extinguishment of bridge notes
|
| | | | 2,750,171 | | | | | | — | | |
Gain on extinguishment of note payable
|
| | | | (788,156) | | | | | | — | | |
Change in operating assets and liabilities:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | | | 925,544 | | | | | | (566,465) | | |
Accounts receivable – unbilled
|
| | | | (426,973) | | | | | | (305,197) | | |
Due from factor
|
| | | | (495,735) | | | | | | — | | |
Prepaid expenses and other current assets
|
| | | | (10,155) | | | | | | (62,740) | | |
Accounts payable
|
| | | | 299,130 | | | | | | 110,414 | | |
Accrued expenses
|
| | | | 308,410 | | | | | | 163,843 | | |
Accrued interest
|
| | | | 562,193 | | | | | | 449,671 | | |
Deferred revenue
|
| | | | (69,189) | | | | | | 436,551 | | |
Net cash used in operating activities
|
| | | | (126,249) | | | | | | (426,011) | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | | | |
Purchase of property and equipment
|
| | | | — | | | | | | (900) | | |
Capitalization of internally developed software
|
| | | | (214,534) | | | | | | (259,304) | | |
Net cash used in investing activities
|
| | | | (214,534) | | | | | | (260,204) | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | | | |
Proceeds from issuance of bridge notes payable
|
| | | | — | | | | | | 1,000,000 | | |
Net cash provided by financing activities
|
| | | | — | | | | | | 1,000,000 | | |
Net (decrease) increase in cash
|
| | | | (340,783) | | | | | | 313,785 | | |
Cash at beginning of period
|
| | | | 695,909 | | | | | | 53,893 | | |
Cash at end of period
|
| | | $ | 355,126 | | | | | $ | 367,678 | | |
Supplemental disclosure of non-cash investing and financing activities: | | | | | | | | | | | | | |
Derivative liability for embedded conversion features on convertible notes
issued |
| | | $ | 3,614,000 | | | | | $ | — | | |
| | |
2021
|
| |
2020
|
| ||||||
Specimens – contracts with customers
|
| | | $ | 2,947,295 | | | | | $ | 1,701,343 | | |
Shipping and other
|
| | | | 16,512 | | | | | | 10,317 | | |
Revenue
|
| | | $ | 2,963,807 | | | | | $ | 1,711,660 | | |
| | |
2021
|
| |
2020
|
| ||||||
Shares issuable upon conversion of preferred stock
|
| | | | 1,291,012 | | | | | | 1,291,012 | | |
Shares issuable upon exercise of stock options
|
| | | | 265,102 | | | | | | 224,519 | | |
Shares issuable upon exercise of warrants to purchase common stock
|
| | | | 23,309 | | | | | | 23,309 | | |
| | |
March 31,
2021 |
| |
December 31,
2020 |
| ||||||
| | |
(unaudited)
|
| | | | | | | |||
Website
|
| | | $ | 105,376 | | | | | $ | 105,376 | | |
Computer equipment and purchased software
|
| | | | 84,589 | | | | | | 84,589 | | |
Equipment
|
| | | | 35,449 | | | | | | 35,449 | | |
Furniture and fixtures
|
| | | | 87,184 | | | | | | 87,184 | | |
Leasehold improvements
|
| | | | 24,935 | | | | | | 24,935 | | |
Total property and equipment
|
| | | | 337,533 | | | | | | 337,533 | | |
Accumulated depreciation
|
| | | | (273,074) | | | | | | (261,944) | | |
Total property and equipment, net
|
| | | $ | 64,459 | | | | | $ | 75,589 | | |
| | |
Fair value at March 31, 2021
|
| |||||||||||||||||||||
| | |
Total
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
| | |
(unaudited)
|
| |||||||||||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liability on convertible notes payable, related parties
|
| | | $ | 2,527,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,527,000 | | |
Derivative liability on bridge notes payable and bridge notes payable, related parties
|
| | | | 3,662,000 | | | | | | — | | | | | | — | | | | | $ | 3,662,000 | | |
Total liabilities
|
| | | $ | 6,189,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,189,000 | | |
| | |
Fair value at December 31, 2020
|
| |||||||||||||||||||||
| | |
Total
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liability on convertible notes payable, related parties
|
| | | $ | 2,373,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,373,000 | | |
Total liabilities
|
| | | $ | 2,373,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,373,000 | | |
| | |
2021
|
| |
2020
|
| ||||||
| | |
(unaudited)
|
| |||||||||
Balance, beginning of period
|
| | | $ | 2,373,000 | | | | | $ | 2,214,000 | | |
Derivative liability on bridge notes payable and bridge notes payable, related parties
|
| | | | 3,614,000 | | | | | | — | | |
Loss included in earnings
|
| | | | 202,000 | | | | | | 605,000 | | |
Balance, end of period
|
| | | $ | 6,189,000 | | | | | $ | 2,819,000 | | |
Year Ending December 31,
|
| |
Operating
Leases |
| |||
2021 (remaining)
|
| | | $ | 121,058 | | |
2022
|
| | | | 163,158 | | |
2023
|
| | | | 165,254 | | |
2024
|
| | | | 27,601 | | |
Total
|
| | | $ | 477,071 | | |
| | |
2021
|
| |
2020
|
|
Assumptions: | | | | | | | |
Risk-free interest rate
|
| |
0.47% – 0.64%
|
| |
1.35% – 1.41%
|
|
Expected term (in years)
|
| |
5.81 – 5.85
|
| |
5.57 – 6.14
|
|
Expected volatility
|
| |
49.88% – 49.98%
|
| |
43.11% – 43.91%
|
|
Expected dividend yield
|
| |
—%
|
| |
—%
|
|
| | |
Options
Outstanding |
| |
Weighted Average
Exercise Price |
| |
Weighted Average
Remaining Contractual Term in Years |
| |||||||||
Balance at December 31, 2020
|
| | | | 251,847 | | | | | $ | 1.00 | | | | | | 8.06 | | |
Granted
|
| | | | 14,515 | | | | | $ | 1.00 | | | | | | | | |
Exercised
|
| | | | — | | | | | $ | 1.00 | | | | | | | | |
Cancelled/forfeited
|
| | | | (1,260) | | | | | $ | 1.00 | | | | | | | | |
Balance at March 31, 2021
|
| | | | 265,102 | | | | | $ | 1.00 | | | | | | 7.96 | | |
Options exercisable at March 31, 2021
|
| | | | 179,456 | | | | | $ | 1.00 | | | | | | 7.66 | | |
| | |
Amount to be
paid |
| |||
SEC registration fee
|
| | | $ | 2,635 | | |
FINRA filing fee
|
| | | | 3,500 | | |
Exchange listing fee
|
| | | | 50,000 | | |
Accounting fees and expenses
|
| | | | 50,000 | | |
Legal fees and expenses
|
| | | | 350,000 | | |
Printing expenses
|
| | | | 140,000 | | |
Transfer agent and registrar fees
|
| | | | 4,000 | | |
Miscellaneous expenses
|
| | | | 1,000 | | |
Total | | | | $ | 601,135 | | |
|
Exhibit
No. |
| |
Description
|
|
| 1.1 | | | | |
| 3.1 | | | | |
| 3.2 | | | | |
| 3.3 | | | | |
| 3.4 | | | | |
| 3.5 | | | | |
| 5.1 | | | | |
| 10.1 | | | | |
| 10.2 | | | | |
| 10.3 | | | | |
| 10.4 | | | | |
| 10.5 | | | | |
| 10.6 | | | | |
| 10.7 | | | | |
| 10.8 | | | | |
| 10.9 | | | | |
| 10.10 | | | | |
| 10.11 | | | | |
| 10.12 | | | |
|
Name
|
| |
Position
|
| |
Date
|
|
|
/s/ Christopher Ianelli
Christopher Ianelli
|
| |
Chief Executive Officer, President and Director
(Principal Executive Officer) |
| |
May 27, 2021
|
|
|
/s/ Jill Mullan
Jill Mullan
|
| | Chief Operating Officer, Secretary, Treasurer and Director | | |
May 27, 2021
|
|
|
/s/ Tracy Curley
Tracy Curley
|
| |
Chief Financial Officer
(Principal Financial and Accounting Officer) |
| |
May 27, 2021
|
|
|
/s/ Andrew L. Ross
Andrew L. Ross
|
| | Chairman of the Board | | |
May 27, 2021
|
|
|
/s/ George “Bud” Scholl
George “Bud” Scholl
|
| | Director | | |
May 27, 2021
|
|
|
/s/ Steven Gullans
Steven Gullans
|
| | Director | | |
May 27, 2021
|
|
Exhibit 23.1
Consent of Independent Registered Public Accounting Firm
We consent to the use in this Registration Statement on Form S-1 of iSpecimen Inc. of our report dated April 2, 2021 relating to the financial statements of iSpecimen Inc., appearing in the Prospectus, which is part of this Registration Statement.
We also consent to the reference to our firm under the heading "Experts" in such Prospectus.
Wolf & Company, P.C.
Boston, Massachusetts
May 27, 2021
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