Q3 2022 Precipio Inc Earnings Call

Okay.

Welcome to the precipitous shareholder torque third quarter 2022 shareholder update conference call.

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Now, let me hand over the call to Ilan Daniela.

Thank you.

Afternoon, everyone. Thanks for joining our 2022 third quarter shareholder update call I appreciate those who sent in questions. We'll do our best to address them in todays call.

As we come to a close in 2022 I'd like to address some of the goals we set.

It started the year and did not reach.

To discuss some of the achievements and most importantly, the steps, we're taking and the changes we're making to make sure the company aggressively pursues and achieve its goals that were set up.

Earlier in the year, we set up various goals for the company, which included both revenue growth targets as well as financial months.

While we have made some progress towards our goals, we're not there yet.

Is disappointing and we are by no means content with where we're at.

Running a business process engineers learning, particularly in a situation, where we are essentially launching a new lines of business within the company.

There are several internal areas within the company underperformed.

For those we will be making changes so that we can do better.

Realizing the results of those changes take some time and determination and this is what we're focused on ensuring that the impact of those changes is rapid.

Actual.

It's important to me to convey to you that I S. T O take responsibility for the company's situation I hold myself accountable.

Furthermore, I imagine the team has also held accountable and we've all been working hard to analyze the internal reasons within our company for where we are and put together an action plan to ensure that we meet those goals.

I also recognize that our stock prices moved in the wrong direction.

I'm not going to stand here and he can give excuses around global economy market conditions or things like that.

The company's performance and achieving those coupled with market conditions negatively impacted our share price.

This too is disappointing reality, we watch space and myself and management as well and each of the company's employees are aware of this and the responsibility we have towards you our shareholders.

Okay.

In that context, I'd like to share with you today three of the main of the many lessons we learned the action plans put together and the resulting changes we've made and we'll be making short term sure. We're on track to meet those goals.

Number one.

All about the team.

Anyone who hasn't been part of or manage the business. Those are the key ingredients is not the technology of the product or market. It's the team is able to take all of those components and execute well.

We are a capable R&D team, that's created product and mark the market wants.

Commercial team did not deliver the targeted results and therefore sales and revenue growth did not follow as expected.

Midyear 2022, we evaluated where we were and decided to bring in additional high caliber experienced people from the outside in order to strengthen the products commercial team.

This was not an easy decision to make because it requires investing in hiring talent.

Talent a cheap.

Knowing that there is a certain lag until the company sees revenue results.

But going back to the principal every manager knows it's all about the team.

We set out to hire ourselves a solid commercial team.

We're extremely fortunate to be able to bring in the talent that we did with senior executive experience in molecular product sales such as John Roberts, who headed up molecular sales for Qiagen, a $10 billion company focused specifically on molecular diagnostic products and a company we directly compete with.

And Keith matters, who headed up sales and distribution for a multibillion dollar health care company.

One of the things I'm. Most proud of is that we were able to attract these talented people who left their jobs to come work for a company they.

They did that for a few reasons because they knew they would be part of something meaningful and team members have a strong team.

Cause they would have a major impact on our business and we believe that this impact is well on its way.

With this team in place, we're already seeing a change in how our product and commercial team functions our level of interaction with our partners and our customers and I have no doubt this will yield the results we all expected.

The second area, which needs to support its marketing.

While our technology and products are solid like any product in a competitive market they need proper marketing support and we didn't have that in our company. So.

So we hired Greg our director of marketing and his presence you've already made a significant impact in.

It is relatively short tenure, Greg and the team have created important content required to support the sales of our products. This.

This includes product spec sheets operating manuals videos and other supporting materials.

Any serious somebody must have in.

In addition, we have a new website that is better organized and more reflective of the company's value proposition and our goals.

With all this content available online for customers to access.

We also released recently presented our first peer reviewed posters and the worlds most prominent molecular trades.

Having a professional looking presence with a proper marketing support has already yielded dozens of leads and potential customers from this trade show.

We have a system and a plan to manage all these leads and the team to follow up in an organized manner and convert them into customers in a rapid manner.

Yeah.

The last factor I wanted to discuss was related to our distribution partners. As we stated in the past our strategy has always been to rely on distribution partners rather than trying to build our own direct sales force.

Issues of cost and return on investment and reach into those customers were just some of the key factors that helped us arrive at that decision and I still think it's the right strategy.

However, mid year, we realized we needed to beef up our beefs up our distribution effort.

Partnering with a powerhouse such as Thermo Fisher was exactly what we needed in July we signed a distribution agreement with them within three months, we commenced the laws and the launch of our partnership.

Our second distribution partnership with find a month later announced in September with.

With a familiar with a similar form a formidable name whose name I Unfortunately cannot disclose but it today and you all know that partnership was launched soon after.

To date these partnerships have collectively yielded over 50 qualified leads.

Potential sales funnel of over $10 million annually and this is all within the first 60 days these partnerships.

We have a few big customers that we hope to close before the year ends and when we do I assure you those will be announced.

Each of those customer contracts will take a nice chunk out of our cash burn as move us closer to breakeven.

There is nothing we are doing that is more important the closing those deals and our team. It's all hands on deck to get them done.

So we now look forward to what we could expect.

Our goals remain the same revenue growth of our pathology services division as well as our products.

Our goal is to reach cash flow breakeven and financial independence, So that our shareholders can see the growth in the business translated into equity appreciation.

I do believe we've taken the steps necessary to move the company towards those goals and while I realize that our financial statements from the last quarter don't yet reflect that.

<unk> the team the commercial efforts are all pointing to that direction.

I'd like to wish you all and your families happy holiday season. Thank you for listening and have a nice evening, we'll see you in the next year.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

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