NeoGenomics Reports Revenue of $63.4 Million, Net Income of $0.6 Million and Adjusted EBITDA of $9.2 Million in the First Quarter of 2018

FT. MYERS, FL–(Marketwired – May 01, 2018) – NeoGenomics, Inc. (NASDAQ: ), a leading provider of cancer-focused genetic testing services, today reported its results for the first quarter 2018.

First Quarter 2018 Highlights:

  • 10% increase in consolidated revenue; 14% excluding PathLogic
  • 15% increase in clinical genetic testing volume(1)
  • 43% increase in Pharma Services revenue; 90% increase in Pharma Services backlog
  • $16 million increase in Cash Flow from Operations
  • 40% increase in Adjusted EBITDA(2) with 44% incremental margin

Consolidated revenues for the first quarter of 2018 were $63.4 million, an increase of 10.4% over the same period in 2017. After adjusting 2017 results for the divestiture of PathLogic, revenue growth was 13.6%. Clinical genetic test volume(1) increased by 14.9% year over year. Average revenue per clinical genetic test (“Revenue per Test”) decreased by 3.4% to $319, primarily due to changes in Medicare reimbursement and regulation.

Consolidated gross profit improved by $4.4 million, or 19.0%, to $27.3 million and consolidated gross margin improved by approximately 310 basis points year-over-year to 43.0%. Gross margin improvement was driven by productivity gains and cost efficiencies that resulted in a 6.6% reduction in average cost-of-goods-sold per clinical genetic test (“Cost per Test”) and margin expansion in the Pharma Services business driven by economies of scale.

Consolidated operating expenses increased by $1.3 million, or 5.4%, from the prior year, primarily due to increased investments in sales and marketing.

Net income in Quarter 1 was $0.6 million compared to a net loss of $1.2 million in the prior year‘s first quarter. GAAP earnings per share available to common stockholders, after deducting non-cash preferred stock charges, was a loss of $0.03 in Quarter 1 compared to a loss of $0.05 per share in the prior year‘s first quarter.

Adjusted EBITDA(2) was $9.2 million in Quarter 1, a 40% improvement from the prior year. Adjusted Net Income(2) was $3.7 million compared to $2.0 million in the prior year. Adjusted Diluted EPS(2) was $0.04 per share compared to $0.02 in the prior year.

Accounts receivable at the end of Quarter 1 was $58.1 million, a decrease of $2.3 million from the end of Quarter 4. Days Sales Outstanding (“DSO”) improved from year-end to 83 days, with the Clinical Services Division DSO at 78 days.

Douglas M. VanOort, the Company‘s Chairman and CEO, commented, “First Quarter results were quite good and underscore the strength of our business model. We achieved double digit-revenue growth and substantial improvement in profitability while making significant investments in future growth. We were particularly pleased with the record cash flow from operations and 90% increase in our Pharma Services Division backlog.”

2018 Financial Outlook:

NeoGenomics maintained its full year 2018 guidance, initially issued on February 21, 2018. The Company expects consolidated revenue to be in the range of $260 to $272 million, including the adoption of ASC 606 (which equates to a range of $275 million to $288 million prior to the application of ASC 606) and GAAP Diluted EPS to be a loss of ($0.13) to ($0.08) per share. The Company expects Adjusted EBITDA(2) to be in the range of $39 to $43 million and Adjusted Diluted EPS(2) to be $0.15 – $0.20 per share.

Please also refer to the tables reconciling forecasted Adjusted Net Income, Adjusted Diluted EPS and Adjusted EBITDA to their closest GAAP equivalents in the section of this report entitled “Reconciliation of Non-GAAP Financial Guidance to Corresponding GAAP Measures.”

The Company reserves the right to adjust this guidance at any time based on the ongoing execution of its business plan. Current and prospective investors are encouraged to perform their own due diligence before buying or selling any of the Company‘s securities, and are reminded that the foregoing estimates should not be construed as a guarantee of future performance.

(1) Clinical genetic tests exclude tests performed for Pharma Services customers and tests performed by PathLogic.

(2) NeoGenomics has provided adjusted financial information that has not been prepared in accordance with GAAP, including Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS. Each of these measures is defined in the section of this report entitled “Non-GAAP Financial Measures,” and the basis for using these measures is explained in the section entitled “Basis for Non-GAAP Adjustments.” See also the tables reconciling such measures to their closest GAAP equivalent.

Conference Call

The Company has scheduled a webcast and conference call to discuss their first quarter results on Tuesday, May 1, 2018 at 8:30 AM EDT. Interested investors should dial (domestic) and (international) at least five minutes prior to the call. A replay of the conference call will be available until 8:30 AM on May 8, 2018, and can be accessed by dialing (domestic) and (international). The playback conference ID Number is 27166. The web-cast may be accessed under the Investor Relations section of our website at or . An archive of the webcast will be available until 8:30 AM on August 1, 2018.

About NeoGenomics, Inc.

NeoGenomics, Inc. specializes in cancer genetics testing and information services. The Company provides one of the most comprehensive oncology-focused testing menus in the world for physicians to help them diagnose and treat cancer. The Company‘s Pharma Services division serves pharmaceutical clients in clinical trials and drug development.

Headquartered in Fort Myers, FL, NeoGenomics operates CLIA certified laboratories in Aliso Viejo and Fresno, California; Tampa and Fort Myers, Florida; Houston, Texas; Nashville, Tennessee and Rolle, Switzerland. NeoGenomics serves the needs of pathologists, oncologists, academic centers, hospital systems, pharmaceutical firms, integrated service delivery networks, and managed care organizations throughout the United States. For additional information about NeoGenomics, visit .

Forward Looking Statements

Certain information contained in this press release constitutes forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995, including the information set forth in the “Full-Year 2018 Financial Outlook”. These forward looking statements involve a number of risks and uncertainties that could cause actual future results to differ materially from those anticipated in the forward-looking statements as the result of the Company‘s ability to continue gaining new customers, offer new types of tests, integrate its acquisition of the Clarient business, and otherwise implement its business plan, as well as additional factors discussed under the heading “Risk Factors” and elsewhere in the Company‘s Quarterly Report on Form 10-K filed with the SEC on March 13, 2018. As a result, this press release should be read in conjunction with the Company‘s periodic filings with the SEC. In addition, it is the Company‘s practice to make information about the Company available by posting copies of its Company Overview Presentation from time to time on the Investor Relations section of its website at .

Forward-looking statements represent the Company‘s estimates only as of the date such statements are made (unless another date is indicated) and should not be relied upon as representing the Company‘s estimates as of any subsequent date. While the Company may elect to update forward-looking statements at some point in the future, it specifically disclaims any obligation to do so, even if its estimates change.

NeoGenomics, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)

     ASSETS March 31, 2018  December 31, 2017 (Restated) Cash and cash equivalents $15,173  $12,821 Accounts receivable  58,129   60,427 Inventory  7,515   7,474 Other current assets  6,954   5,153 Total current assets  87,771   85,875 Property and equipment (net of accumulated depreciation of $44,024 and $40,530, respectively)  40,411   36,504 Intangible assets, net  72,751   74,165 Goodwill  147,019   147,019 Other assets  1,320   891 TOTAL ASSETS $349,272  $344,454          LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS‘ EQUITY        Accounts payable and other current liabilities $33,096  $27,482 Short-term portion of capital leases and senior debt  10,207   8,989 Total current liabilities  43,303   36,471          Long-term portion of capital leases and senior debt  90,837   96,435 Long-term pharma contract liability  522   283 Deferred income tax liability, net  6,594   6,688 Total long-term liabilities  97,953   103,406 TOTAL LIABILITIES  141,256   139,877          Series A Redeemable Convertible Preferred Stock  35,471   32,615 Stockholders Equity  172,545   171,962 TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS‘ EQUITY $349,272  $344,454

NeoGenomics, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share amounts)

  For the Three Months Ended
March 31,
  2018  2017(Restated) Net Revenue:      Clinical testing $ 56,971    $ 52,907   Pharma Services  6,452     4,521    Total Revenue  63,423     57,428            COST OF REVENUE  36,120     34,480   GROSS PROFIT  27,303     22,948            Operating expenses:        General and administrative  17,067     17,018   Research and development  956     862   Sales and marketing  6,775     5,648   Impairment charges  –     –    Total operating expenses  24,798     23,528   Income (Loss) From Operations  2,505     (580 )          Interest expense, net  1,486     1364   Other income  (63 )   –   Income (loss) before taxes  1,082     (1,944 ) Income tax expense (benefit)  438     (779 ) Net Income (Loss)  644     (1,165 )          Deemed dividends on preferred stock  1,003     894   Amortization of preferred stock beneficial conversion feature  1,853     1,672   Net Loss Attributable to Common Stockholders $ (2,212 )  $ (3,731 )          (Loss) per Common Share:        Basic $ (0.03 )  $ (0.05 ) Diluted $ (0.03 )  $ (0.05 )          Weighted Average Shares Used in Computation of Earnings per Common Share:        Basic  79,876     78,650   Diluted  79,876     78,650  

NeoGenomics, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)

  Three Months Ended March 31, CASH FLOWS FROM OPERATING ACTIVITIES 2018  2017 (Restated) Net income (loss) $ 644    $ (1,165 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities:        Depreciation  3,633     3,979   Amortization of intangibles  1,413     1,725   Amortization of debt issue costs  113     110   Gain on sale of assets  (7 )   –   Non-cash stock based compensation  1,624     1,130   Changes in assets and liabilities, net  6,892     (7,465 ) NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES  14,311     (1,686 )          CASH FLOWS FROM INVESTING ACTIVITIES        Purchases of property and equipment  (4,666 )   (3,007 ) NET CASH USED IN INVESTING ACTIVITIES  (4,666 )   (3,007 )          CASH FLOWS FROM FINANCING ACTIVITIES        Advances from revolving credit facility, net  –     5,006   Repayment of capital lease obligations/loans  (1,394 )   (1,263 ) Repayment on term loan and revolving credit facility, net  (6,338 )   (932 ) Proceeds from the exercise of options, warrants and ESPP shares, net of transaction expenses  483     505   Payments of equity issue costs  –     (112 ) NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES  (7,249 )   3,204   Effects of foreign exchange rate changes on cash and cash equivalents  (45 )   –   NET CHANGE IN CASH AND CASH EQUIVALENTS  2,352     (1,489 )          CASH AND CASH EQUIVALENT, BEGINNING OF PERIOD  12,821     12,525   CASH AND CASH EQUIVALENTS, END OF PERIOD $ 15,173    $ 11,036            SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:        Interest paid $ 1,396    $ 1,257   Income taxes paid  7     5            SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING INFORMATION:        Equipment acquired under capital lease/loan obligations $ 3,355    $ 1,898  

Use of Non-GAAP Financial Measures

The Company‘s financial results and financial guidance are provided in accordance with accounting principles generally accepted in the United States of America (GAAP) and using certain non-GAAP financial measures. Management believes that presentation of operating results using non-GAAP financial measures provides useful supplemental information to investors and facilitates the analysis of the Company‘s core operating results and comparison of core operating results across reporting periods. Management also uses non-GAAP financial measures for financial and operational decision making, planning and forecasting purposes and to manage the Company‘s business. Management believes that these non-GAAP financial measures enable investors to evaluate our operating results and future prospects in the same manner as management. The non-GAAP financial measures do not replace the presentation of GAAP financial results and should only be used as a supplement to, and not as a substitute for, the Company‘s financial results presented in accordance with GAAP. There are limitations inherent in non-GAAP financial measures because they exclude charges and credits that are required to be included in a GAAP presentation, and do not therefore present the full measure of the Company‘s recorded costs against its net revenue. In addition, the Company‘s definition of the non-GAAP financial measures below may differ from non-GAAP measures used by other companies.

Definitions of Non-GAAP Measures

Non-GAAP Adjusted EBITDA

“Adjusted EBITDA” is defined by NeoGenomics as net income from continuing operations before: (i) interest expense, (ii) tax expense, (iii) depreciation and amortization expense, non-cash stock-based compensation expense, and if applicable in a reporting period, acquisition-related transaction expenses (vi) non-cash impairments of intangible assets (vii) debt financing costs (viii) and other significant non-recurring or non-operating (income) or expenses.

Non-GAAP Adjusted Net Income

“Adjusted Net Income” is defined by NeoGenomics as net income available to common shareholders from continuing operations plus: (i) non-cash amortization of customer lists and other intangible assets, (ii) non-cash stock-based compensation expense, (iii) non- cash deemed dividends on preferred stock, (iv) non-cash amortization of preferred stock beneficial conversion feature, and if applicable in a reporting period (v) acquisition related transaction expenses (vi) non-cash impairments of intangible assets (vii) debt financing costs (viii) and other significant non-recurring or non-operating (income) or expenses.

Non-GAAP Adjusted Diluted EPS

“Adjusted Diluted EPS” is defined by NeoGenomics as Adjusted Net Income divided by Adjusted Diluted Shares outstanding. Adjusted Diluted Shares outstanding is the sum of Diluted shares outstanding and the weighted average number of common shares that would be outstanding if the preferred stock were converted into common stock on the original issue date based on the number of days such common shares would have been outstanding in the reporting period. In addition, if GAAP Net Income is negative and Adjusted Net Income is positive, Adjusted Diluted Shares will also include any options or warrants that would be outstanding as dilutive instruments using the treasury stock method.

Basis for Non-GAAP Adjustments

NeoGenomics‘ basis for excluding certain expenses (income) from GAAP financial measures, are outlined below:

Moving expenses — These expenses include costs associated with the move of our Irvine, California facility into our Aliso Viejo facility and restoring the Irvine facility back to its original condition at the end of the lease term. We are adjusting for these costs in Adjusted EBITDA as the move was the direct result of the Clarient acquisition and will not be an annually recurring item. Without adjusting for these expenses, the Company believes it would be difficult to compare financial results from operations across reporting periods on a consistent basis.

Amortization of intangible assets — The intangible assets that give rise to this amortization expense relate to acquisitions, and the amounts allocated to such intangible assets and the terms of amortization vary by acquisition and type of asset. NeoGenomics excludes these items to provide a consistent basis for comparing operating results across reporting periods, pre and post-acquisition.

Non-cash, stock-based compensation expenses — Because many of the company‘s full-time physicians reside in California, state regulations against the corporate practice of medicine require us to retain their professional service corporations rather than hire them as employees. GAAP provides that variable stock- based compensation treatment be applied for non-employee service providers. This variable accounting treatment can cause significant fluctuations in quarterly expense based on changes in the Company‘s stock price from one quarter to the next and result in large positive or negative impacts to total operating expenses. Without adjusting for these non-cash expenses, the Company believes it would be difficult to compare financial results from core operations across reporting periods on a consistent basis.

Deemed dividends on preferred stock — GAAP accounting for the unique structure of the Series A Redeemable Preferred Stock requires the Company to assume that such preferred stock will be outstanding for its entire ten-year term. In addition, GAAP requires that the escalating preferred dividend rate over time be accelerated for accounting purposes and amortized on a straight-line basis over the ten-year life of the instrument, irrespective of the minimal contractual requirements for “paid in kind” stock dividends in the early years. Since such implied dividends are not paid in cash, and since the Company believes that such preferred stock will be redeemed within the first three years it is outstanding, before any significant dividends have accrued under the contractual terms, the Company believes these non-cash expenses are not meaningful in evaluating the operating performance of the Company and it would be misleading to not adjust for such expenses across reporting periods.

Amortization of preferred stock beneficial conversion feature–This non-cash expense is also a direct result of the complex GAAP accounting requirements for our Series A Redeemable Preferred Stock. The Company believes this expense is not meaningful in evaluating the operating performance of the Company, distorts comparisons across reporting periods, and that it would be misleading to not adjust for such expenses across reporting periods.

Reconciliation of GAAP Net Income to Non-GAAP EBITDA and Adjusted EBITDA
(Unaudited, in thousands)

  For the Three-Months Ended
March 31,
  2018  2017
(Restated)
Net Income (Loss) (GAAP) $ 644  $ (1,165 ) Adjustments to Net Income (Loss):        Interest expense, net  1,486   1,364   Income tax expense (benefit)  438   (779 ) Amortization of intangibles  1,413   1,725   Depreciation  3,633   3,979   EBITDA  7,614   5,124   Further Adjustments to EBITDA:        Facility moving expenses  –   351   Non-cash, stock-based compensation  1,624   1,130   Adjusted EBITDA (non-GAAP) $ 9,238  $ 6,605  

Reconciliation of GAAP Net Income Available to Common Stockholders to Non- GAAP Adjusted Net Income
and GAAP Earnings per Share to Non-GAAP Adjusted Earnings per Share
(Unaudited, in thousands except per share amounts)

  For the Three Months Ended
March 31,   2018  2017 (Restated) Net (Loss) attributable to common stockholders (GAAP) $ (2,212 )  $ (3,731 ) Adjustments to Net Loss:        Amortization of intangibles  1,413     1,725   Deemed dividends on preferred stock  1,003     894   Amortization of preferred stock beneficial conversion feature  1,853     1,672   Non-cash stock-based compensation expenses  1,624     1,130   Facility moving expenses  –     351   Adjusted Net Income (non-GAAP) $ 3,681    $ 2,041            Net loss per common share (GAAP)        Diluted EPS $ (0.03 )  $ (0.05 ) Adjustments to diluted loss per share:        Amortization of intangibles  0.02     0.02   Deemed dividends on preferred stock  0.01     0.01   Amortization of preferred stock beneficial conversion feature  0.02     0.02   Non-cash stock based compensation expenses  0.02     0.01   Facility moving expenses  –     –   Rounding and impact of including preferred shares and stock options in Adj. Diluted Shares in net loss periods (3)  –     0.01   Adjusted Diluted EPS (non-GAAP) $ 0.04    $ 0.02            Weighted average shares used in computation of adjusted diluted earnings per share:        Diluted Common Shares (GAAP)  79,876     78,650   Options and restricted stock not included in GAAP Diluted Shares (using treasury stock method)  1,919     1,693   Weighted Avg. Preferred Shares (as converted)  6,864     6,600   Adjusted Diluted Shares outstanding (non-GAAP)  88,659     86,943  

  1. This adjustment is for rounding and in those periods in which there is a net loss attributable to common shareholders, will also compensate for the effects of including the Series A Preferred Shares on an as-converted basis and the treasury stock impact of outstanding stock options in the Adjusted Diluted Shares outstanding, both of which are not included in GAAP Diluted Shares outstanding.

Reconciliation of Non-GAAP Financial Guidance to Corresponding GAAP Measures

2018 net income available to common stockholders calculated in accordance with GAAP will be impacted by certain non-cash charges, including: (i) expenses related to variable stock-based compensation, (ii) approximately $5.7 million of expense related to the amortization of customer lists and other intangibles from the Clarient acquisition, (iii) approximately $4.0 million of deemed preferred stock dividends, and (iv) approximately $8.1 million for the amortization of the beneficial conversion feature related to the preferred stock issued in connection with the Clarient acquisition. These non-cash charges have been included in GAAP net income (loss) available to common shareholders and GAAP net income (loss) per share; however, they have been removed from Adjusted Net Income and Adjusted Diluted Net Income per Share.

The following table reconciles our 2018 outlook for Net Income, EBITDA and EPS to the corresponding non-GAAP measures of Adjusted Net Income, Adjusted EBITDA and Adjusted Diluted EPS:

  For the Year Ended
December 31, 2018   Low Range  High Range Net (Loss) attributable to common stockholders (GAAP) $ (10,900 )  $ (6,900 ) Amortization of intangibles  5,700     5,700   Non-cash, stock-based compensation  7,000     7,000   Preferred stock dividends and amortization of BCF  12,100     12,100   Adjusted Net Income (non-GAAP) $ 13,900    $ 17,900   Interest and taxes  7,600     7,600   Depreciation  17,500     17,500   Adjusted EBITDA (Non-GAAP) $ 39,000    $ 43,000            Net loss per common share (GAAP)        Diluted EPS $ (0.13 )  $ (0.08 ) Adjustments to diluted loss per share:        Amortization of intangibles  0.07     0.07   Non-cash, stock based compensation expenses (4)  0.09     0.09   Preferred stock dividends and amortization of BCF  0.15     0.15   Impact of including preferred shares and stock options in Adj. Diluted Shares (3)  (0.02 )   (0.02 ) Adjusted Diluted EPS (non-GAAP) $ 0.16    $ 0.20            Assumed shares outstanding in 2018        Diluted shares outstanding  81,500     81,500   Options not included in diluted shares  2,700     2,700   Series A Preferred Stock outstanding  7,000     7,000   Adjusted diluted shares outstanding (Non-GAAP)  91,200     91,200  

(4) Forecasts of non-cash, stock-based compensation expense assume consistency in the Company‘s stock price in 2018 and no further stock-based awards requiring variable accounting.

Supplemental Information
Pharma Revenue, Cost of Revenue and Gross Margin

  For the Three-Months Ended March 31, Pharma Operation: 2018  2017
(Restated)
% Change Pharma Revenue $ 6,452  $ 4,521 43 % Cost of Revenue  5,078   3,780 34 % Gross Margin $ 1,374  $ 741 85 %

Supplemental Information
Clinical Genetic(1) Requisitions Received, Tests Performed, Revenue and Cost of Revenue
(Unaudited, in thousands, except test and requisition data)

  For the Three-Months Ended March 31, Clinical Genetic Operation: 2018  2017 (Restated) % Change Requisitions received (cases)  105,229   94,528 11.3 % Number of tests performed  178,794   155,567 14.9 % Average number of tests/requisition  1.7   1.65 3.0 %            Total clinical genetic testing revenue $ 56,971  $ 51,329 11.0 % Average revenue/requisition $ 541  $ 543 (0.3 )% Average revenue/test $ 319  $ 330 (3.4 )%            Cost of revenue $ 31,042  $ 28,915 7.4 % Average cost/requisition $ 295  $ 306 (3.6 )% Average cost/test $ 174  $ 186 (6.6 )%

(1) Clinical genetic tests exclude tests performed for Pharma Services customers and tests performed by PathLogic.

Supplemental Information
Quarterly Impact of ASU 606 Adoption
(in thousands)

   As Previously Reported    Q1 2017  Q2 2017  Q3 2017  Q4 2017  Total 2017 Net Revenue                Clinical Testing  $ 56,690    $ 59,791    $ 56,186    $ 59,079    $ 231,748   Pharma Services   4,986     6,299     6,866     8,713     26,863   Total Revenue   61,676     66,090     63,052     67,792     258,611   Gross Profit   27,196     31,178     28,810     33,132     120,316   Total operating expenses   27,311     29,864     32,172     28,645     117,992   Income (Loss) from Operations   (115 )   1,314     (3,362 )   4,487     2,324   Interest expense   1,364     1,411     1,398     1,368     5,540   Other expense   –     –     –     265     265   Income tax (benefit) expense   (825 )   (54 )   340     (2,096 )   (2,635 ) Net Income (Loss)  $ (654 )  $ (43 )  $ (5,100 )  $ 4,950    $ (846 )           Adjustments due to adoption of accounting standard     Q1 2017   Q2 2017   Q3 2017   Q4 2017   Total 2017 Net Revenue                     Clinical Testing  $ (3,783 )  $ (4,244 )  $ (4,999 )  $ (5,623 )  $ (18,649 ) Pharma Services   (465 )   418     437     (1,506 )   (1,116 ) Total Revenue   (4,248 )   (3,826 )   (4,562 )   (7,129 )   (19,765 ) Gross Profit (Loss)   (4,248 )   (3,826 )   (4,562 )   (7,129 )   (19,765 ) Total operating expenses   (3,783 )   (4,353 )   (5,214 )   (5,841 )   (19,191 ) Income (Loss) from Operations   (465 )   527     652     (1,288 )   (574 ) Interest expense   –     –     –     –     –   Other expense   –     –     –     –     –   Income tax (benefit) expense   46     1     47     287     381   Net Income (Loss)  $ (511 )  $ 526    $ 605    $ (1,575 )  $ (955 )           As Restated     Q1 2017   Q2 2017   Q3 2017   Q4 2017   Total 2017 Net Revenue                     Clinical Testing  $ 52,907    $ 55,547    $ 51,187    $ 53,456    $ 213,097   Pharma Services   4,521     6,717     7,303     7,207     25,748   Total Revenue   57,428     62,264     58,490     60,663     238,845   Gross Profit   22,948     27,352     24,248     26,003     100,551   Total operating expenses   23,528     25,511     26,958     22,804     98,801   Income (Loss) from Operations   (580 )   1,841     (2,710 )   3,199     1,750   Interest expense   1,364     1,411     1,398     1,368     5,540   Other expense   –     –     –     265     265   Income tax (benefit) expense   (779 )   (53 )   387     (1,809 )   (2,254 ) Net Income (Loss)  $ (1,165 )  $ 483    $ (4,495 )  $ 3,375    $ (1,801 )