ISPC iSpecimen Inc

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): August 2, 2023

 

iSpecimen Inc.

(Exact name of registrant as specified in its charter)

 

Delaware		001-40501		27-0480143
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

450 Bedford Street Lexington, MA 02420

(Address of principal executive offices, including zip code)

 

Registrant’s telephone number, including area code: (781) 301-6700

 

Not Applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.0001 per share		ISPC		The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company x

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

Item 2.02.

Results of Operations and Financial Condition.

 

On August 2, 2023, iSpecimen Inc., a Delaware corporation (the “Company”), issued a press release (“Earnings Release”) announcing its financial and operating results for the quarter ended June 30, 2023. A copy of the press release is furnished as Exhibit 99.1 to this Current Report. You are advised that financial information in the Earnings Release for the quarter ended June 30, 2023 is unaudited. The Company also filed its unaudited financial statements for the quarter ended June 30, 2023 with its Quarterly Report on Form 10-Q on August 2, 2023.

 

The Earnings Release contains certain statements and information that speak to the Company’s expectations or predictions of the future. These statements and information may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such forward-looking statements are subject to risks and uncertainties, many of which are beyond the Company’s control, which could cause the Company’s actual results to differ materially from those expressed in or implied by these statements. Please see the Company’s disclosures regarding risk factors and forward-looking statements in its filings with the Securities and Exchange Commission (the “SEC”) (including Current Reports on Form 8-K, Quarterly Reports on Form 10-Q, and its most recent Annual Report on Form 10-K) for a discussion of the known material factors that could cause the Company’s actual results to differ materially from those indicated or implied by such forward-looking statements.

 

The information in this Item 2.02 and Exhibit 99.1 attached hereto will not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor will it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such filing.

 

Item 7.01.

Regulation FD Disclosure.

 

The Company also held a conference call and audio webcast at 8:30 a.m. Eastern Time on August 2, 2023 (“Earnings Call”) in which it discussed its second quarter 2023 results. The Company issued a press release on July 25, 2023, providing information on how to access the Earnings Call. A replay of the Earnings Call is available through August 16, 2023, by calling 1-844-512-2921 (toll free) or 1-412-317-6671 (for international callers). An archived version of the Earnings Call will also be available on the Company’s Investor Relations site at https://investors.ispecimen.com/presentations/. During the Earnings Call, the Company provided an investor presentation, dated August 2023 (the “Presentation”), which is attached hereto as Exhibit 99.2 and incorporated by reference herein. The Presentation will also be posted on the Company’s website and can be accessed at https://investors.ispecimen.com/. The Company expressly disclaims any obligation to update the Presentation, or any other information posted on or available through its website, and cautions that the information set forth therein is only accurate as of the date indicated on such materials. The inclusion of any data or statements in the Presentation (or available on or through the Company’s website) does not signify that such information is considered material.

 

The information in this Item 7.01 and Exhibit 99.2 attached hereto will not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor will it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such filing.

 

Forward-Looking Statements

 

This Current Report on Form 8-K may contain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Such forward-looking statements are characterized by future or conditional verbs such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate” and “continue” or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information. Such statements are only predictions and the Company’s actual results may differ materially from those anticipated in these forward-looking statements.

 

 

There may be events in the future that the Company is not able to accurately predict or control. Factors that may cause such differences include, but are not limited to, those discussed under risk factors in the Company’s Amendment No. 1 to the Annual Report on Form 10-K/A for the year ended December 31, 2022 and other filings filed with the SEC, including the uncertainties associated with the Company’s lack of profitability, its continued capital needs, its lack of a long operating history, its growth strategy, inflation and recession and its impact on the business, Russia’s war with Ukraine and its impact on the operations, its technology development plans, and the regulatory environment in which it operates. Forward-looking statements speak only as of the date they are made. The Company does not assume any obligation to update forward-looking statements as circumstances change. The Company gives no assurance that it will achieve its expectations.

 

You may access the Company’s SEC filings by visiting SEC’s website at http://www.sec.gov. This Current Report does not constitute an offer or invitation for the sale or purchase of securities or to engage in any other transaction with the Company or its affiliates. The information in this Current Report is not targeted at the residents of any particular country or jurisdiction and is not intended for distribution to, or use by, any person in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.

 

Item 9.01.

Financial Statements and Exhibits.

 

(d)	Exhibits.
99.1	Press Release, dated August 2, 2023.
99.2	Investor Presentation, dated August 2023.
104	Cover Page Interactive Data File

 

Portions of this report may constitute “forward-looking statements” as defined by federal law. Although the Company believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Additional information about issues that could lead to material changes in the Company’s performance is contained in the Company’s filings with the SEC.

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Dated: August 2, 2023

 

	iSPECIMEN INC.
	By:	/s/ Tracy Curley
		Name: Tracy Curley
		Title: Chief Executive Officer

 

 

 

Exhibit 99.1

 

iSpecimen Reports Second Quarter 2023 Financial and Operating Results

 

LEXINGTON, Mass., August 2, 2023 – iSpecimen Inc. (Nasdaq: ISPC) (“iSpecimen” or the “Company”), an online global marketplace that connects scientists requiring biospecimens for medical research with a network of healthcare specimen providers, today reported its financial and operating results for the three and six month periods ended June 30, 2023.

 

“In the second quarter we focused our efforts on advancing key revenue enhancement opportunities that are complementary to our core business, including sequencing, embedded coordinators and a reboot of our remnant line of business, as well as integrating new technologies to the iSpecimen Marketplace to enhance our capabilities and meet increasing demand from our customers,” said Tracy Curley, iSpecimen’s CEO. “As we aim to create the most expansive global biospecimen supply chain technology platform and marketplace, we are efficiently connecting researchers with healthcare providers and meeting the specific needs of the evolving life science industry.”

 

“While we pride ourselves on our ability to offer, what we believe to be, the most advanced solution for biospecimen procurement, our financial results this quarter fell below expectations. A reduction in purchase order requests, due to an industry-wide slowdown in funding to our life science research customer base, contributed to lower quarterly revenues. However, our ability to pivot to launch several new initiatives during the quarter to reinstate our expected levels of order fulfillment is proving successful as we have witnessed an increase in the level of our backlog at the close of the second quarter. Given the increase in backlog, we believe the decrease in revenue for the second quarter of 2023 represents a temporary downturn in our business. We have taken the required actions to address the industry-wide issues impacting our regular course of business and we believe we are on track to produce stronger results for the third quarter of 2023 and beyond.”

 

“Additionally, the implementation of our technology rollouts supports our core business and revenue enhancement opportunities. We have completed our pilot run for our sequencing project and are in the process of placing embedded project coordinators at supplier sites to expedite processing. As we continue to roll out these new growth initiatives and more rapidly process orders from our growing supplier and customer base, we expect to build both our top and bottom-line results,” concluded Curley.

 

Q2 2023 Financial Results & Recent Operational Highlights

 

·

Revenue of $1.63 million for the three month period and $4.6 million for the six month period of 2023 compared to $2.34 million for the three month period and $4.9 million for the six month period of 2022.

 

·

Unique supplier organizations under agreement were 230 as of June 30, 2023, an increase of 7.5% over Q2 2022, added 13 new biospecimen suppliers to iSpecimen’s proprietary network in the first half of 2023.

 

·

Unique customer organizations who have purchased from iSpecimen, totaled 534 in Q2 2023, an increase of 22% over Q2 2022.

 

·

iSpecimen Marketplace had nearly 6,900 registered research and supplier users in Q2 2023, up 24% over Q2 2022.

 

 

Q2 2023 Corporate Events

 

·

CEO Tracy Curley presented at the Aegis Virtual Conference April 24, 2023.

 

·

CEO Tracy Curley participated in a fireside chat at the Healthcare IT Virtual Conference hosted by Maxim Group and M-Vest June 1, 2023.

 

Financial Results for the Three and Six Month Periods Ended June 30, 2023

 

Revenue was approximately $1.63 million for the second quarter of 2023, a decrease of 31%, compared to approximately $2.34 million for the second quarter of 2022. The reduction in revenue was primarily due to a decrease of 2,322, or 33%, in specimen count from 7,004 specimens in the three months ended June 30, 2022 to 4,682 specimens in the three months ended June 30, 2023. The effect of the decrease in specimen count was offset by a change in the specimen mix which caused the average selling price per specimen to increase by $13, or 4%, from approximately $334 in the three months ended June 30, 2022 to $347 in the three months ended June 30, 2023.

 

During the six-month period ended June 30, 2023, we reported revenue of approximately $4.6 million, compared to approximately $4.9 million during the same period last year. The decrease in revenue for the six-month period ended June 30, 2023, was attributable to a decrease in average selling price per specimen of $64, or 16%, from approximately $407 in the six months ended June 30, 2022 to $343 in the six months ended June 30, 2023. The decrease in average selling price per specimen was offset by an increase of 1,383, or 12%, in specimen count from 11,928 specimens in the six months ended June 30, 2022 to 13,311 specimens in the six months ended June 30, 2023.

 

Cost of revenue decreased by approximately $146,000, or 15%, from approximately $1.0 million in the second quarter of 2022 to approximately $854,000 for the second quarter of 2023, which was attributable to a 33% decrease in the number of specimens accessioned for the current period compared to the same period in the prior year, offset by a $40, or 28%, increase in the average cost per specimen.

 

Cost of revenue for the six-month period ended June 30, 2023, was approximately $2 million compared to approximately $2.2 million for the same period in 2022, a decrease of 8%. The six-month period decrease was attributable to a 17% decrease in the average cost per specimen impacted by the specimen mix, offset by a 12% increase in the number of specimens accessioned during the six months ended June 30, 2023, over the same period in the prior year.

 

General and administrative expenses for the three months ended June 30, 2023, increased by $183,000, to approximately $1.8 million or 12%, compared to approximately $1.6 million for the same period in the prior year. For the six-month period ended June 30, 2023, general and administrative expenses increased by $100,000, to approximately $3.5 million or 3%, compared to approximately $3.4 million during the same period in the prior year.

 

Net loss was approximately $3.5 million, or $(0.39) per share, for the second quarter of 2023, compared to a net loss of approximately $2.6 million, or $(0.30) per share, for the second quarter of 2022. Net loss was approximately $5.9 million, or $(0.66) per share, for the first six months of 2023, compared to a net loss of approximately $5.0 million, or $(0.57) per share, for the first six months of 2022.

 

 

As of June 30, 2023, iSpecimen had approximately $2.0 million in cash and cash equivalents and approximately $6.2 million in available-for-sale securities, with the sum of both classifications totaling approximately $8.2 million, compared to cash of approximately $15.3 million as of December 31, 2022. This decrease was primarily the result of an increased spend for operating expenses of approximately $4.7 million and investments in technology of approximately $2.7 million offset by increased conversions of accounts receivable to cash of approximately $300,000 during the first half of 2023.

 

For more information on our financial results and other information relating to iSpecimen for the second quarter of 2023, including the Company’s unaudited financial statements for the three-month period ended June 30, 2023, please see the Company’s Report on Form 10-Q for the Quarterly Period ended June 30, 2023, which will be filed with the Securities and Exchange Commission (“SEC”) on its Edgar database on today, August 2, 2023.

 

Conference Call and Webcast Information

 

The Company will host a conference call and audio webcast today, August 2, 2023 at 8:30 a.m. Eastern Time featuring remarks by Tracy Curley, CEO.

 

Event:	iSpecimen Second Quarter 2023 Results Conference Call
Date:	Wednesday, August 2, 2023
Time:	8:30 a.m. Eastern Time
Live Call:	+1-844-826-3035 (U.S. Toll Free) or +1-412-317-5195 (International)
Webcast:	https://viavid.webcasts.com/starthere.jsp?ei=1621940&tp_key=e0a2fff245

 

For interested individuals unable to join the conference call, a replay will be available through August 16, 2023, at +1-844-512-2921 (U.S. Toll Free) or +1-412-317-6671 (International). Participants must use the following code to access the replay of the call: 10180082. An archived version of the webcast will also be available on iSpecimen’s Investor Relations site: https://investors.ispecimen.com/presentations/.

 

About iSpecimen

 

iSpecimen (Nasdaq: ISPC) offers an online marketplace for human biospecimens, connecting scientists in commercial and non-profit organizations with healthcare providers that have access to patients and specimens needed for medical discovery. Proprietary, cloud-based technology enables scientists to intuitively search for specimens and patients across a federated partner network of hospitals, labs, biobanks, blood centers and other healthcare organizations. For more information, please visit www.ispecimen.com.

 

Forward Looking Statements

 

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are characterized by future or conditional verbs such as "may," "will," "expect," "intend," "anticipate," “believe," "estimate" and "continue" or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information.

 

 

Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to the risk factors contained in the Company's filings with the SEC, which are available for review at www.sec.gov. Forward-looking statements speak only as of the date they are made. New risks and uncertainties arise over time, and it is not possible for the Company to predict those events or how they may affect the Company. If a change to the events and circumstances reflected in the Company's forward-looking statements occurs, the Company's business, financial condition and operating results may vary materially from those expressed in the Company's forward-looking statements.

 

Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

 

For further information, please contact:

 

Investor Contact

KCSA Strategic Communications

Phil Carlson / Erika Kay

iSpecimen@kcsa.com

 

Media Contacts

KCSA Strategic Communications

Raquel Cona / Shana Marino

iSpecimen@kcsa.com

 

 

iSpecimen Inc.

Condensed Balance Sheets

 

		June 30, 2023				December 31, 2022
			(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	2,004,500			$	15,308,710
Available-for-sale securities			6,209,491				—
Accounts receivable – unbilled			1,098,356				2,327,789
Accounts receivable, net of allowance for doubtful accounts of $492,609 and $230,999 at June 30, 2023 and December 31, 2022, respectively			1,458,845				1,597,915
Prepaid expenses and other current assets			187,769				300,434
Tax credit receivable			12,332				140,873
Total current assets			10,971,293				19,675,721
Property and equipment, net			163,871				225,852
Internally developed software, net			6,300,465				4,503,787
Operating lease right-of-use asset			107,115				184,692
Security deposits			27,601				27,601
Total assets		$	17,570,345			$	24,617,653
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	1,779,920			$	2,459,063
Accrued expenses			882,274				1,531,238
Operating lease current obligation			107,975				158,451
Deferred revenue			89,601				132,335
Total current liabilities			2,859,770				4,281,087
Operating lease long-term obligation			—				27,396
Total liabilities			2,859,770				4,308,483
Commitments and contingencies (See Note 8)
Stockholders’ equity
Common stock, $0.0001 par value, 200,000,000 shares authorized, 9,094,274 issued, and 9,063,274 outstanding at June 30, 2023 and 8,956,808 issued and 8,925,808 outstanding at December 31, 2022			906				892
Additional paid-in capital			68,889,903				68,573,774
Treasury stock, 31,000 shares at June 30, 2023 and December 31, 2022, at cost			(172	)			(172	)
Accumulated other comprehensive income			688				—
Accumulated deficit			(54,180,750	)			(48,265,324	)
Total stockholders’ equity			14,710,575				20,309,170
Total liabilities and stockholders’ equity		$	17,570,345			$	24,617,653

 

See accompanying notes to these unaudited condensed financial statements.

 

 

iSpecimen Inc.

Condensed Statements of Operations and Comprehensive Loss

(Unaudited)

 

		Three Months Ended June  30,								Six Months Ended June 30,
		2023				2022				2023				2022
Revenue		$	1,625,140			$	2,338,688			$	4,575,339			$	4,857,348
Operating expenses:
Cost of revenue			853,633				999,743				2,000,545				2,165,659
Technology			843,099				635,650				1,677,506				1,163,173
Sales and marketing			977,748				950,563				2,025,346				1,697,994
Supply development			291,360				242,380				614,862				424,450
Fulfillment			462,672				519,994				891,692				963,788
General and administrative			1,758,451				1,575,365				3,469,633				3,385,679
Total operating expenses			5,186,963				4,923,695				10,679,584				9,800,743
Loss from operations			(3,561,823	)			(2,585,007	)			(6,104,245	)			(4,943,395	)
Other income (expense), net
Interest expense			(3,535	)			(42,273	)			(7,070	)			(80,321	)
Interest income			110,882				13,881				225,144				26,535
Other income (expense), net			(29,138	)			6,590				(29,255	)			6,630
Total other income (expense), net			78,209				(21,802	)			188,819				(47,156	)
Net loss		$	(3,483,614	)		$	(2,606,809	)		$	(5,915,426	)		$	(4,990,551	)
Other comprehensive income:
Net loss		$	(3,483,614	)		$	(2,606,809	)		$	(5,915,426	)		$	(4,990,551	)
Unrealized gain (loss) on available-for-sale securities			(18,155	)			—				688				—
Total other comprehensive income			(18,155	)			—				688				—
Comprehensive loss		$	(3,501,769	)		$	(2,606,809	)		$	(5,914,738	)		$	(4,990,551	)
Net loss per share - basic and diluted		$	(0.39	)		$	(0.30	)		$	(0.66	)		$	(0.57	)
Weighted average shares of common stock outstanding - basic and diluted			9,033,868				8,821,698				9,011,644				8,793,723

 

See accompanying notes to these unaudited condensed financial statements.

 

 

Exhibit 99.2

August 2023 Investor Presentation Nasdaq: ISPC The Online Marketplace for Human Biospecimens Transforming Biospecimen Procurement

This presentation may contain forward - looking statements within the meaning of Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange Act of 1934 , as amended . Such forward - looking statements are characterized by future or conditional verbs such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate” and “continue” or similar words . You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward - looking information . Such statements are only predictions and our actual results may differ materially from those anticipated in these forward - looking statements . We believe that it is important to communicate future expectations to investors . However, there may be events in the future that we are not able to accurately predict or control . Factors that may cause such differences include, but are not limited to, those discussed under Risk Factors in our filings filed with the Securities and Exchange Commission (the "SEC"), including the uncertainties associated with our lack of profitability, our continued capital needs, our lack of a long operating history, our growth strategy, the uncertain effect of geopolitical developments, our technology development plans, and the regulatory environment in which we operate . We do not assume any obligation to update forward - looking statements as circumstances change . Certain market data information in this presentation is based on management's estimates . We obtained the industry, market and competitive position data used throughout this presentation from internal estimates and research as well as from industry publications and research, surveys and studies conducted by third parties . We believe our estimates to be accurate as of the date of this presentation . However, this information may prove to be inaccurate because of the method by which we obtained some of the data for our estimates or because this information cannot always be verified due to the limits on the availability and reliability of raw data, and the nature of the data gathering process . You may access our SEC filings by visiting the SEC’s website at http : //www . sec . gov . This presentation does not constitute an offer or invitation for the sale or purchase of securities or to engage in any other transaction with us or our affiliates . The information in this presentation is not targeted at the residents of any particular country or jurisdiction and is not intended for distribution to, or use by, any person in any jurisdiction or country where such distribution or use would be contrary to local law or regulation . 2 Forward - Looking Statements

Our Vision To transform the biospecimen industry with an online marketplace connecting researchers to patients, biospecimens, and data, through our global network. 3

4 1. Similar to Amazon, iSpecimen has developed an online marketplace to seamlessly connect researchers with healthcare providers and supplier organizations 2. First mover advantage that addresses an inefficient and fragmented global biospecimen supply chain that is poised to be disrupted by an online solution 3. $3B - $4B global biospecimen market growing at 10 - 15% per year 4. Strong revenue growth with a 7 - year CAGR of 48% fueled by precision and regenerative medicine research 5. Plans to enhance existing platform and develop new service offering to increase revenue opportunities Investor Highlights >200 Healthcare Provider / Supplier Organizations >500 Customer Organizations

Biospecimens are Essential for Life Science R&D Basic Research Biomarker Identification & Validation Drug Discovery & Development Diagnostics Discovery & Validation Biofluids Solid Tissue Stem & Immune Cells Plasma, Serum, Urine, Saliva Industry Academia Government 5 Lung, Breast, Colon, Brain Bone Marrow, Blood, Tonsils, Lymph Nodes Applications Patients SUPPLY SIDE HEALTHCARE PROVIDERS DEMAND SIDE LIFE SCIENCE RESEARCHERS Biospecimens Data Organizations Medical Record

Biospecimen Supply Chain Challenges Providers miss revenue and research opportunities > 3 Billion clinical specimens are discarded annually worldwide 5 > 1 Billion Patient encounters yearly in the U.S. where a specimen could be provided for research 4 > 800 Million banked specimens are in biorepository inventories worldwide 6 6 Researchers limit their work … in 2022, 78% of researchers said they find it difficult - to - extremely difficult to find the type and quantity of specimens they need 8 “Challenging” and “Inefficient” most common words used to describe biospecimen procurement process by researchers 8 10 years ago, 81% of researchers said they limit the scope of their work due to difficulties obtaining biospecimens 7 4,5,6,7,8 “Sources Cited” page 28

Biospecimen Supply Chain Challenges 7 - Difficult to Connect, Search and Compliantly Transact - Average time to develop relationships is 6 - 12 months ᶟ 3 “Sources Cited” page 28 PROVIDERS RESEARCHERS CHALLENGE

The iSpecimen Marketplace Solution 8 - iSpecimen Customer Base: 70% of the Top 20 Pharma Companies and IVD Companies Worldwide PROVIDERS RESEARCHERS SOLUTION

Full - Service Procurement Offering - Connect Suppliers with Researchers - Manage the Entire Procurement Process SPECIMEN SEARCH & SELECTION SPECIMEN LOGISTICS SPECIMEN MANAGEMENT DATA MANAGEMENT STUDY/ORDER MANAGEMENT SUPPLIER SITE TRAINING COLLECTION KIT BUILDING COMPLIANCE MANAGEMENT STUDY DESIGN & SPECIFICATION CONTRACTING 9 iSpecimen Services

Advance Scientific Discovery Support research mission and advance diagnostic, therapeutic and vaccine research Monetize Banked Biospecimens Instantly connect to a global network of researchers in search for biospecimens Ensure Compliance Protect the privacy and security of patient information Accelerate Research Search for specimens anytime, anywhere, through easy - to - use online marketplace Save Time and Money Instantly connect to global network of specimen providers Reduce Risk Manage contracting and regulatory compliance Providers… Researchers… 10 iSpecimen Value Proposition

Global Footprint United States Dominican Republic United Kingdom Jamaica Germany Spain France Mexico Ukraine Netherlands Georgia Venezuela Bulgaria Turkey Russian Federation Romania India Armenia Peru 11 Agreements with 200+ Supplier Organizations ✔ 1,000+ Hospitals ✔ 1,000s of Clinics and Practice Groups ✔ 150+ Clinical Research Centers ✔ 60+ Clinical and Pathology Labs ✔ 55+ Biorepositories ✔ 8 Blood Centers Growing Researcher Adoption ✔ 500+ Buyside Customers ✔ Work with 70% of Top - 20 Pharma and IVD Companies in the World ✔ Cumulatively delivered 175,000+ Specimens Across 2,400+ Projects • 82% CAGR – Registered Users (2015 - 2023) • 42% CAGR – Marketplace Logins (2015 - 2022) • Approximately 2,700 Unique Searches Performed by Researchers in 2022 Comprehensive Supplier & Researcher Networks

Strategic Growth Initiatives 12

Enhance iSpecimen Marketplace Technology 13 Increased investment and ongoing advancements of iSpecimen Marketplace technology: ● Improve integration with provider partners (first patient data electronic record integrations) ● Improve iSpecimen Marketplace search and request capabilities ● Update back - end architecture to support growth and scale, enhance security and prepare data - as - a - service pilot ● Utilize insights provided by supplier and researcher interactions to evolve matchmaking capabilities

2023 – 2025 iSpecimen Product Roadmap 2023 Revamp Customer Search Experience, Unify data, and Automate Matchmaking 2024 Enhance Supplier Experience though enablement, reporting and workflow. Expand Prospective search capabilities 2025 Continue to evolve Efficiencies, Matchmaking and Data. iSpecimen is committed to continual product evolution supporting constituents on all sides of our Marketplace 14

Revenue Enhancement Opportunities 15 ● Sequencing ○ We believe iSpecimen will be the first company in industry to offer on - demand sequenced cancer specimens for research on a large scale, utilizing our extensive supplier network and leveraging the Marketplace platform. ○ Successfully launched first sequencing pilot and marketing campaign is eminent ○ This opportunity has the prospects of being even larger than our core business and will enable us to become cash flow positive ● iSpecimen project coordinators embedded at select supplier sites ○ Facilitate improved specimen feasibility, identification, coordination, utilization, and fulfillment ○ We have numerous sites that are in various stages of contract negotiations and deployment, with an embedded coordinator in place with one site and several more hirings in the works. ○ We will continue to add more to sites where the business opportunities are substantial. ● Remnant revenue enhancing project ○ Improving internal operational processes and creating a line of business structure through significant integration with supplier sites ○ Executing new marketing campaigns for remnants to create new revenue channel ○ Exciting technology advancements to accelerate our remnant business

“Utilization of sample data for research and for monetization is the next key value driver for the biobanks.” - Frost & Sullivan, Global Biobanking Market Landscape Capitalize on Growing Data Asset Banked Specimen Records Patient Records Medical Condition Records Clinical Specimen Records Laboratory Test Records Millions of Unique Specimen and Patient Records provide a competitive advantage and differentiator now and available for future adjacent opportunities such as patient search, clinical trial recruitment, and data licensing. 80M+ 16 1.2M + 15M+ 1M+ 640M + 1

Financial Overview 17

$700 $1,448 $3,067 $4,395 $4,298 $8,184 $11,135 $10,402 $4,575 2015 2016 2017 2018 2019 2020 2021 2022 1H23 Annual Revenue ($000) 2015 – Q2 2023 (Unaudited) ▲ 48% CAGR Revenue (2015 – 2022) Annual Revenue 18

Statement of Operations 19

Balance Sheet 20 Note: As of June 30, 2013, Cash + Investments – Short Term = $8,213,991 2

Common Stock Information 21

Tracy Curley | Chief Executive Officer, Chief Financial Officer and Treasurer Ms . Curley brings three decades of experience in public accounting and corporate finance for both publicly traded companies and emerging companies like iSpecimen and joined iSpecimen in August 2020 . She came to iSpecimen after over a decade with national accounting firms such as CohnReznick where she focused on serving clients in the middle markets . During her time as a partner in public accounting firms, she was responsible for creating and leading teams to provide audit and consulting services to a growing clientele of private and public emerging growth companies primarily in the technology and life sciences industries . Ms . Curley received her Master of Accountancy and Bachelor of Science in Business Administration with a concentration in accounting from Kansas State University . She also attended the United States Military Academy . She is a certified public accountant licensed in the Commonwealth of Massachusetts . Benjamin Bielak | Chief Information Officer and Secretary Mr . Bielak has been serving as our Chief Information Officer since June 2018 . He served as the Chief Information Officer at GNS Healthcare, a leading casual machine learning product and services company, from January 2017 to May 2018 and as Director of Academic Technology at Harvard University, from February 2015 to January 2017 . Prior to his work at GNS and Harvard, Mr . Bielak was the Chief Information Officer at Dovetail Health from November 2006 to April 2014 . He previously held roles as Manager of Development and Integration at Boston Medical Center and Senior Manager of Technology at Sapient, a global services company, from December 1997 to July 2005 . Mr . Bielak holds a Masters of Business Administration degree from Bentley University, where his studies focused on change management, and a master’s degree from Boston University in computer science . Eric Langlois | Chief Revenue Officer 22 Management Team 9 “Sources Cited” page 28 Mr . Langlois has been serving as Chief Revenue Officer since January 2023 . Prior he served as iSpecimen’s SVP of Sales and Business Development since arriving in January of 2016 . Prior to joining iSpecimen, Mr . Langlois served as Global Head of Sales for The Reprocell Group helping to integrate sales teams driven by the demands of integrating four portfolio companies with products and services in Cellular Reprogramming, Stem Cells, 3 D cell culture, genomics, and biospecimens . Prior to that, he held rapidly increasing positions from Regional Sales Manager to VP of Sales with Genomics Collaborative, SeraCare Life Sciences, SeqWright, and BioServe . Mr . Langlois has amassed 25 years of experience in life science research going from bench laboratory science into business development and executive management . Mr . Langlois holds a BS in Biotechnology/Biochemistry from Worcester Polytechnic Institute .

2 3 1. Similar to Amazon, iSpecimen has developed an online marketplace to seamlessly connect researchers with healthcare providers and supplier organizations 2. First mover advantage that addresses an inefficient and fragmented global biospecimen supply chain that is poised to be disrupted by an online solution 3. $3B - $4B global biospecimen market growing at 10 - 15% per year 4. Strong revenue growth with a 7 - year CAGR of 48% fueled by precision and regenerative medicine research 5. Plans to enhance existing platform and develop new service offering to increase revenue opportunities Investor Highlights >200 Healthcare Provider / Supplier Organizations >500 Customer Organizations

Sign up for a free iSpecimen Marketplace account at iSpecimen.com Contact us. iSpecimen Inc. 450 Bedford Street Lexington, MA 02420 investors@ispecimen.com Be a part of the biospecimen revolution

Appendix 25

PHASE 3 Expansion via the Online iSpecimen Marketplace Œ START UP Company Ideation and Self - Funding PHASE 1 Proof of Concept PHASE 2 Critical Mass of Suppliers and Early Customer Adoption �� � 2010 – 2011 2012 – 2013 2014 – 2017 2018 – 2022 0 Customers 1 Supplier Agreement 0 Specimen Records 0 Patient Records 0 FTEs $500K Friends and Family Covert. Debt 1 Customer 3 Supplier Agreements 2+ Million Specimen Records 400+ Thousand Patient Records 7 FTEs $2.5M Series A 140+ Customers 60+ Supplier Agreement 26+ Million Specimen Records 5+ Million Patient Records 33 FTEs $8M Series B 500+ Customers 200+ Supplier Agreement 80+ Million Specimen Records 15+ Million Patient Records 74 FTEs $20.7M + $21M IPO + Private Placement 26 Strategic Evolution

iSpecimen Marketplace UI/UX Click Search to start searching for specimens 27

2 8 iSpecimen Marketplace UI/UX Use search bar to quickly find specimens that match search criteria

Refine Search Results Using Sliders and Check Boxes iSpecimen Marketplace UI/UX 29

View Quote Request and Add More Specimens Request a Quote iSpecimen Marketplace UI/UX 30 Track and Manage Requests

31 Page Note Source Cited 7 1 iSpecimen estimates based on In Vitro Diagnostics Market Size, Share & Trends Analysis Report By Product, By Application, By Technology (Immunochemistry, Molecular Diagnostics) By End - use, By Region, And Segment Forecasts, 2021 – 2027. Grandview Research, January 2021; and World Preview 2020,Outlook to 2026. EvaluatePharma, July 2020. 7 2 Global Marketing Insights, Precision Medicine Market Size By Technology (Big Data Analytics, Bioinformatics, Gene Sequencing, Dr ug Discovery, Companion Diagnostics), By Application (Oncology, Immunology, CNS, Respiratory), By End - use (Pharmaceutical Companies , Diagnostic Companies, Healthcare IT companies), Industry Analysis Report, Regional Outlook, Application Potential, Competitiv e M arket Share & Forecast, 2020 - 2026, Feb. 2020. and Regenerative Medicine Market Size, Share and Industry Analysis by Product (Cell Therapy, Gene Therapy, Tissue Engineering, Pl ate let Rich Plasma), By Application (Orthopaedics, Wound Care, Oncology), By Distribution Channel (Hospitals, Clinics) & Regional Fo rec ast, 2019 – 2026. Fortune Business Insight, 2019. 8 3 Frost & Sullivan, Global Biobanking Market Landscape. May 20, 2020, page 357 . 9 4 Centers for Disease Control, https://www.cdc.gov/nchs/data/ahcd/namcs_summary/2016_namcs_web_tables.pdf 9 5 iSpecimen estimates based upon American Association of Clinical Chemistry US lab test data cited at https://www.360dx.com/research - funding/aacc - calls - congress - fund - clinical - lab - training - programs, 2020; and Clinical Lab Services, Global Market Trajectory and Analytics; Global Industry Analysts report, 2020. 9 6 iSpecimen estimate based upon Henderson, G.E., Cadigan, R.J., Edwards, T.P. et al. Characterizing biobank organizations in th e U .S.: results from a national survey, 2013; and Puchois, Comprehensive Biomarker Discovery and Validation for Clinical Application, 20 13. 9 7 Holly A. Massett et al. Assessing the need for a standardized cancer HUman Biobank (caHUB): findings from a national survey w ith cancer researchers; JNCI Monographs, Volume 2011, Issue 42, June 2011. 9 8 Specimen Independent Researcher Survey, 2022. 19 9 All company names and logos appearing on this page are trademarks Ƞ or registered® trademarks of their respective holders. Use and appearance in this presentation of such trademarks (excluding iSpecimen®) do not imply or assert any form of affiliation wit h or endorsement by those companies of iSpecimen or the contents of this presentation. Sources Cited

v3.23.2

Cover	Aug. 02, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Aug. 02, 2023
Entity File Number	001-40501
Entity Registrant Name	iSpecimen Inc.
Entity Central Index Key	0001558569
Entity Tax Identification Number	27-0480143
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	450 Bedford Street
Entity Address, City or Town	Lexington
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02420
City Area Code	781
Local Phone Number	301-6700
Written Communications	false
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Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	ISPC
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false

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