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): November 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 November 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 September 30, 2023. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K. You are advised that financial information in the Earnings Release for the quarter ended September 30, 2023 is unaudited. The Company also filed its unaudited financial statements for the quarter ended September 30, 2023 with its Quarterly Report on Form 10-Q on November 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 its Current Reports on Form 8-K, Quarterly Reports on Form 10-Q, and most recent Annual Report on Form 10-K, as amended) 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 November 2, 2023 (“Earnings Call”) in which it discussed its third quarter 2023 results. The Company issued a press release on October 23, 2023, providing information on how to access the Earnings Call. A replay of the Earnings Call is available through November 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 November 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 on Form 8-K 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 on Form 8-K 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 November 2, 2023.
99.2	Investor Presentation, dated November 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: November 2, 2023

 

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

 

 

Exhibit 99.1

 

iSpecimen Reports Third Quarter 2023 Financial and Operating Results

 

Sequential Quarterly Revenue Growth of 75% Driven by Enhanced Operational Efficiencies of iSpecimen Marketplace and Rollout of New Business Initiatives

 

LEXINGTON, Mass., November 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 nine month periods ended September 30, 2023.

 

Q3 2023 Financial Results & Recent Operational Highlights

 

●

Revenue of $2.8 million for the three-month period ended September 30, 2023, compared to $2.6 million for the same period in 2022. Revenue increased $1.2 million, or 75% sequentially, from $1.6 million in Q2 2023;

●

For the third quarter 2023, iSpecimen experienced a 122% increase in the conversion of quotes to purchase orders, compared to the blended quarterly average of the prior four quarters;

●

As of September 30, 2023, unique supplier organizations under agreement were 234, compared to 217 as of September 30, 2022;

●

As of September 30, 2023, unique customer organizations who purchased from iSpecimen was 603, up from 480, an increase of 26%, compared to September 30, 2022;

●

As of September 30, 2023, iSpecimen Marketplace had 7,326 registered research and supplier users, up from 6,353, or 15%, compared to September 30, 2022.

 

Tracy Curley, Chief Executive Officer of iSpecimen, stated, “Our third quarter results highlight the success of our efforts to improve operational efficiencies. I am extremely encouraged by the positive turnaround of our results in the third quarter compared to the second quarter, which combined with our recent cost cutting initiatives, adds to my belief that we are on track with our target to become cash flow neutral by year end.”

 

Curley added, “One of the most impactful initiatives we completed in the third quarter of 2023 was the rollout of our Next-Day Quote Program. This effort has been successful in expediting the biospecimen procurement process, resulting in greatly improved order fulfillment levels, as evidenced by a significant increase in conversions from quote to purchase orders during the third quarter. I am confident that iSpecimen will continue to benefit from the improvements we’ve made to drive efficiencies and increase revenue opportunities throughout our business.”

 

“Finally, we made strong progress advancing our Cancer Sequencing Procurement Program during the third quarter, which is a key revenue enhancing project for iSpecimen. As one of a select number of companies capable of offering large-scale, on-demand cancer sequenced specimens, we are seeing tremendous interest for these high-demand specimens and believe we can play an integral role in supporting the advancement of cancer research with this program. We are encouraged by our operational and financial progress, as well as the increasing strength of the core business and prospects of our Cancer Sequencing Program. We are assuredly much stronger and far better positioned for success than we were at the beginning of the year,” concluded Curley.

 

 

Q3 2023 iSpecimen Business Developments

 

●

Thirteen New Biospecimen Suppliers Added to iSpecimen’s Proprietary Provider Network

●

iSpecimen Introduces New Marketplace Functionality to Streamline Access to Clinical Remnant Samples for Researchers

●

iSpecimen Enhances Proprietary Marketplace Platform to Streamline Biospecimen Matchmaking for Researchers and Providers

●

iSpecimen Launches New Virtual Cancer Sequencing Procurement Program

●

iSpecimen Announces Organizational Changes to Enhance Operational Efficiencies and Drive Profitability

●

iSpecimen Expands Provider Network to Enhance Support for Women’s Health Research

●

iSpecimen Launches Next-Day Quote Service for Medical Researchers and Biospecimen Providers

 

Subsequent Operational Highlights

 

●

iSpecimen Expands Proprietary Provider Network to Help Advance Infectious Disease Research

 

Financial Results for the Three and Nine Month Periods Ended September 30, 2023

 

Revenue increased 8% to $2.8 million for the third quarter of 2023, compared to $2.6 million for the third quarter of 2022, and increased 75% compared to $1.6 million for the second quarter of 2023. The increase in the third quarter ended September 30, 2023 was primarily attributable to an increase of 527 specimens, or 11%, in specimen count to 5,367 specimens, compared with 4,840 specimens in the three months ended September 30, 2022. The effect of the increase in specimen count was partially offset by a change in the specimen mix which caused the average selling price per specimen to decrease 3% to $518 per specimen for the three months ended September 30, 2023, compared with $534 per specimen of the same period in 2022.

 

For the nine-month period ended September 30, 2023, iSpecimen reported revenue of $7.35 million, compared to $7.44 million during the same period last year. The slight decrease in revenue was primarily attributable to an 11% decrease in average selling price per specimen to $394, compared to $444 per specimen in the nine months ended September 30, 2022. The decrease in average selling price per specimen was offset by an 11% increase, or 18,678 specimens accessioned, compared to 16,768 specimens accessioned in the nine months ended September 30, 2022.

 

Cost of revenue increased by $211,000, or 18%, to $1.4 million for the nine-month period ended September 30, 2023, compared to $1.2 million in the third quarter of 2022, which was attributable to a $15 per specimen, or 6%, increase in the average cost per specimen and an 11% increase in the number of specimens accessioned for the current period, compared to the same period in the prior year.

 

Cost of revenue for the nine-month period ended September 30, 2023, was $3.39 million, compared to $3.35 million for the same period in 2022. The slight increase was attributable to an 11% increase in the number of specimens accessioned during the nine months ended September 30, 2023, over the same period in the prior year. This increase was offset by an $18 per specimen, or 9%, decrease in the average cost per specimen, impacted by the specimen mix, during the nine-month period ended September 30, 2023, compared to the same period in 2022.

 

General and administrative expenses for the three months ended September 30, 2023, decreased by $1.1 million or 51%, to approximately $1.1 million, compared to $2.2 million for the same period in the prior year. For the nine-month period ended September 30, 2023, general and administrative expenses decreased by $1.1 million, or 20%, to approximately $4.5 million, compared to approximately $5.6 million during the same period in the prior year.

 

 

Net loss was $2.1 million, or $(0.23) per share, for the third quarter of 2023, compared to a net loss of $3.1 million, or $(0.35) per share for the third quarter of 2022. For the first nine months of 2023, net loss was approximately $8.0 million, or $(0.89) per share, compared to a net loss of approximately $8.1 million, or $(0.92) per share for the first nine months of 2022.

 

Through the first nine months of 2023, the Company had a cash burn of $9.7 million, primarily comprised of $6.2 million for operating expenses and $3.5 million of investments to further develop the iSpecimen Marketplace technology, with plans to invest at a lower level in the remainder of the year.

 

As of September 30, 2023, iSpecimen had approximately $2.7 million of cash and cash equivalents and approximately $2.9 million of available-for-sale securities, or $5.6 million combined, as of September 30, 2023, compared to a cash balance of approximately $15.3 million as of December 31, 2022.

 

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

 

Conference Call and Webcast Information

 

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

 

Event:	iSpecimen Third Quarter 2023 Results Conference Call
Date:	Thursday, November 2, 2023
Time:	8:30 a.m. Eastern Time
Live Call:	+1-888-886-7786 (U.S. Toll Free) or +1-416-764-8658 (International)
Webcast:	https://viavid.webcasts.com/starthere.jsp?ei=1638322&tp_key=9fc5429911

 

For interested individuals unable to join the conference call, a replay will be available through November 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: 68130784. 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

 

		September 30, 2023				December 31, 2022
			(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	2,721,568			$	15,308,710
Available-for-sale securities			2,940,967				—
Accounts receivable – unbilled			1,425,434				2,327,789
Accounts receivable, net of allowance for doubtful accounts of $474,052 and $230,999 at September 30, 2023 and December 31, 2022, respectively			1,705,643				1,597,915
Prepaid expenses and other current assets			320,613				300,434
Tax credit receivable			12,332				140,873
Total current assets			9,126,557				19,675,721
Property and equipment, net			146,205				225,852
Internally developed software, net			6,575,811				4,503,787
Operating lease right-of-use asset			233,805				184,692
Other non-current assets			212,718				27,601
Total assets		$	16,295,096			$	24,617,653
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	2,280,164			$	2,459,063
Accrued expenses			1,027,960				1,531,238
Operating lease current obligation			162,054				158,451
Deferred revenue			46,910				132,335
Total current liabilities			3,517,088				4,281,087
Operating lease long-term obligation			72,288				27,396
Total liabilities			3,589,376				4,308,483
Commitments and contingencies (See Note 8)
Stockholders’ equity
Common stock, $0.0001 par value, 200,000,000 shares authorized, 9,105,044 issued, and 9,074,044 outstanding at September 30, 2023 and 8,956,808 issued and 8,925,808 outstanding at December 31, 2022			907				892
Additional paid-in capital			68,996,195				68,573,774
Treasury stock, 31,000 shares at September 30, 2023 and December 31, 2022, at cost			(172	)			(172	)
Accumulated other comprehensive income			641				—
Accumulated deficit			(56,291,851	)			(48,265,324	)
Total stockholders’ equity			12,705,720				20,309,170
Total liabilities and stockholders’ equity		$	16,295,096			$	24,617,653

 

 

iSpecimen Inc.

Condensed Statements of Operations and Comprehensive Loss

(Unaudited)

 

		Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Revenue		$	2,777,751			$	2,583,412			$	7,353,090			$	7,440,760
Operating expenses:
Cost of revenue			1,392,534				1,181,562				3,393,079				3,347,392
Technology			921,580				752,704				2,599,086				1,915,877
Sales and marketing			897,433				832,625				2,972,757				2,530,619
Supply development			186,176				166,058				801,038				590,508
Fulfillment			471,735				516,637				1,363,427				1,480,425
General and administrative			1,102,373				2,234,885				4,522,028				5,620,393
Total operating expenses			4,971,831				5,684,471				15,651,415				15,485,214
Loss from operations			(2,194,080	)			(3,101,059	)			(8,298,325	)			(8,044,454	)
Other income (expense), net
Interest expense			(4,465	)			(58,591	)			(11,535	)			(138,912	)
Interest income			67,362				60,812				292,506				87,347
Other income (expense), net			20,082				3,148				(9,173	)			9,778
Total other income (expense), net			82,979				5,369				271,798				(41,787	)
Net loss		$	(2,111,101	)		$	(3,095,690	)		$	(8,026,527	)		$	(8,086,241	)
Other comprehensive income:
Net loss		$	(2,111,101	)		$	(3,095,690	)		$	(8,026,527	)		$	(8,086,241	)
Unrealized (loss) gain on available-for-sale securities			(47	)			—				641				—
Total other comprehensive (loss) income			(47	)			—				641				—
Comprehensive loss		$	(2,111,148	)		$	(3,095,690	)		$	(8,025,886	)		$	(8,086,241	)
Net loss per share - basic and diluted		$	(0.23	)		$	(0.35	)		$	(0.89	)		$	(0.92	)
Weighted average shares of common stock outstanding - basic and diluted			9,065,319				8,878,888				9,029,732				8,822,423

 

 

Exhibit 99.2

 

November 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 >230 Healthcare Provider / Supplier Organizations >600 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 230+ 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 ✔ 600+ Buyside Customers ✔ Work with 70% of Top - 20 Pharma and IVD Companies in the World ✔ Cumulatively delivered 175,000+ Specimens Across 2,400+ Projects • 79% CAGR – Registered Users (2015 - 2023) • 42% CAGR – Marketplace Logins (2015 - 2023) • Approximately 7,300 Registered Research and Supplier Users as of September 30, 2023 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 was launched on October 2023 ○ 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 embedded coordinators in place with four site. ○ 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 $7,353 2015 2016 2017 2018 2019 2020 2021 2022 9M23 Annual Revenue ($000) 2015 – Q2 2023 (Unaudited) ▲ 47% CAGR Revenue (2015 – 2022) Annual Revenue 18

Statement of Operations 19 iSpecimen Inc. Condensed Statement of Operations Nine Months Ended September 30,  Three Months Ended September 30,       2023      2022 2023      2022 (unaudited) (unaudited) (unaudited) (unaudited) Revenue $ 7,353,090 $ 7,440,760 $ 2,777,751 $ 2,583,412 Operating expenses: Cost of revenue 3,393,079 3,347,392   1,392,534   1,181,562 Technology 2,599,086 1,915,877   921,580   752,704 Sales and marketing 2,972,757 2,530,619   897,433   832,625 Supply development 801,038 590,508   186,176   166,058 Fulfillment 1,363,427 1,480,425   471,735   516,637 General and administrative 4,522,028 5,620,393   1,102,373   2,234,885 Total operating expenses 15,651,415 15,485,214   4,971,831   5,684,471 Loss from operations (8,298,325) (8,044,454)   (2,194,080)     (3,101,059)   Other expense, net Interest expense (11,535) (138,912) (4,465) (58,591) Interest income 292,506 87,347 67,362 60,812 Other income (expense), net (9,173) 9,778 20,082 3,148 Total other income (expense), net 271,798 (41,787) 82,979 5,369 Net loss $ (8,026,527) $ (8,086,241) $ (2,111,101) $ (3,095,690) Other comprehensive income: Unrealized gain (loss) on available-for-sale securities $ 641 $ — $ (47) $ — Total other comprehensive income 641 — (47) — Comprehensive loss $ (8,025,886) $ (8,086,241) $ (2,111,148) $ (3,095,690) Net loss per share Basic and diluted $ (0.89) $ (0.92) $ (0.23) $ (0.35) Weighted average common shares outstanding Basic and diluted 9,029,732 8,822,423 9,065,319 8,878,888

Balance Sheet 20 iSpecimen Inc. Condensed Balance Sheet Information September 30, 2023    December 31, 2022 (unaudited) ASSETS Cash $ 2,721,568 $ 15,308,710 Investments-short term 2,940,967 — Accounts receivable - unbilled   1,425,434   2,327,789 Accounts receivable, net of allowance for doubtful accounts   1,705,643   1,597,915 Prepaid expenses and other current assets   320,613   300,434 Tax credit receivable, net of current portion   12,332   140,873 Total current assets   9,126,557   19,675,721 Property and equipment, net   146,205   225,852 Internally developed software, net   6,575,811   4,503,787 Operating lease right-of-use asset 233,805 184,692 Other non-current assets   212,718   27,601 Total assets $ 16,295,096 $ 24,617,653 LIABILITIES AND STOCKHOLDERS’ EQUITY           Current liabilities:           Accounts payable $ 2,280,164 $ 2,459,063 Accrued expenses   1,027,960   1,531,238 Operating lease - current obligation   162,054   158,451 Deferred revenue   46,910   132,335 Total current liabilities   3,517,088   4,281,087 Operating lease long-term obligation   72,288   27,396 Total liabilities   3,589,376   4,308,483 Common stock   907   892 Additional paid-in capital   68,996,195   68,573,774 Treasury stock   (172)   (172) Other comprehensive income 641 — Accumulated deficit   (56,291,851)   (48,265,324) Total stockholders’ equity   12,705,720   20,309,170 Total liabilities and stockholders’ equity $ 16,295,096 $ 24,617,653 3

Common Stock Information 21 iSpecimen Inc. Fully Diluted Shares Outstanding Diluted Shares of Common Stock Shares outstanding at September 30, 2023 9,074,044 Shares issuable upon vesting of RSUs 129,077 Shares issuable upon exercise of stock options 300,909 Shares issuable upon exercise of warrants to purchase common stock 1,415,000 Total diluted shares at September 30, 2023 10,919,030

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 >230 Healthcare Provider / Supplier Organizations >600 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 – 2023 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 600+ Customers 230+ Supplier Agreement 80+ Million Specimen Records 15+ Million Patient Records 54 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

 

v3.23.3

Cover	Nov. 02, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 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
Soliciting Material	false
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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