Good day, and thank you for standing by. Welcome to the Predictive Oncology Q3 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. And I would now like to hand the conference over to your speaker for today, Mr. Glenn Garmont, Investor Relations. Mr. Garmont, please go ahead..

Welcome, and thank you, everyone, for dialing into the Predictive Oncology third quarter 2023 earnings call. First, you'll hear from our Chief Executive Officer and Chairman of the Board, Raymond Vennare; then our Chief Financial Officer, Josh Blacher, will review our financials; finally, Dr.

Pamela Bush, our Chief Business Officer, will join Raymond and Josh to answer any questions that you may have. Certain matters discussed on this call contain forward-looking statements.

These forward-looking statements reflect our current expectations and projections about future events and are subject to substantial risks, uncertainties and assumptions about our operations and the investments we make.

All statements other than statements of historical facts included in the call regarding our strategy, future operations, future financial position, future revenue and financial performance, projected costs, prospects, plans and objectives of management are forward-looking statements.

The words anticipate, believe, estimate, expect, intend, may, plan, would, target and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

Our actual future performance may materially differ from that contemplated by the forward-looking statements as a result of a variety of factors, including, among other things, factors discussed under the heading Risk Factors in our filings with the SEC.

Except as expressly required by law, the company disclaims any intent or obligation to update these forward-looking statements. And now I would like to turn the call over to Raymond Vennare, Chief Executive Officer.

Raymond?.

Dr. Bernard A. Harris, Jr., who brings with him a wealth of clinical business and operational health care experience; and finance veteran, Andrew Einhorn, who has served as senior finance executive for a broad range of biopharmaceutical companies.

As our momentum continues to accelerate, the Business Advisory Board's insight, expertise and perspectives will be invaluable in our efforts to deliver unique solutions to our drug development partners and creating lasting value for our shareholders.

We are seeking many outstanding candidates who would add to the diversity of backgrounds and perspectives as we seek to round out our Business Advisory Board. At this point, I would like to introduce our new Interim Chief Financial Officer, Josh Blacher.

Josh joined us in August and served as our Principal Financial Officer and Principal Accounting Officer. Josh has served as CFO for several public and private life sciences companies. I'm pleased to have Josh on board.

And he has already had a positive impact on helping some of our operating businesses focus more on top line growth and profitability, introducing efficiencies in the finance and accounting department and helping roll out a more robust Investor Relations program. At this point, I will turn the call over to Josh to review the financials.

Josh?.

Thank you, Raymond. We ended the third quarter of 2023 with cash and cash equivalents of $11.9 million as compared to $22.1 million as of December 31, 2022. In addition, we have 1.8 million outstanding warrants that represent potential source of capital in the future. We have no long-term debt, so our balance sheet is strong.

As of September 30, 2023, stockholders' equity stood at $11.7 million as compared to $21.8 million as of December 31, 2022. We recorded third quarter 2023 revenue of $715,000 as compared to $456,000 for the third quarter of 2022. Our gross margin in the third quarter of 2023 was 85% as compared to 76% for the third quarter of 2022.

Operating expenses were $3.8 million in the third quarter of 2023, down from $4.5 million in the third quarter of 2022. Net cash used in operating activities was $10.1 million for the nine months ended September 30, 2023, as compared to $9.1 million for the comparable period in 2022.

Net cash used in investing activities was approximately $310,000 for the nine months ended September 30, 2023, as compared to $412,000 for the comparable period in 2022. That concludes our financial summary.

You can find additional details in our 8-K containing our earnings press release as well as our 10-Q, which is on file with the SEC and available on our website. With that, I'm going to turn the call now over to the operator for Q&A. As a reminder, Dr. Pamela Bush, our Chief Business Officer, is also available for this segment of the call..

Operator:.

Irene, thank you very much. So everyone, that concludes our call for today. We hope that you take away from this call that the entire Predictive Oncology team is very excited about the growth trajectory that we are currently on.

In the coming quarters, I would anticipate more collaborations and partnerships with some of the world's leading drug developers and research and academic institutions.

And we are very excited to be at the forefront of AI and early drug discovery, playing an important role in the discovery of new oncology drugs, which we believe will not only benefit patients but also create enduring value for our shareholders as well. Thank you again for your support, and I look forward to our next quarterly update in March.

Have a good day..

This concludes today's conference. Thank you for joining us. You may now disconnect your lines..