Executive Summary

Q1 2023 revenue collapsed to $0.673M as Biocept exited COVID-19 testing in February; net loss widened to $7.144M ($0.41 per share). Management emphasized progress on CNSide and enrollment in the FORESEE trial, while instituting lab service agreements and cost controls to improve reimbursement and expense discipline .
Nasdaq deficiency notice: stockholders’ equity fell to $2.428M as of March 31, 2023, triggering non-compliance with Nasdaq Rule 5550(b). The company has 45 days to submit a compliance plan; extension up to ~180 days may be granted, but success is uncertain .
Prior quarters show steep declines as COVID testing demand faded: net revenues fell from $10.611M (Q2’22) to $5.587M (Q3’22) to $0.673M (Q1’23), with mounting losses. COVID revenue ceased entirely after February 2023 .
No Q1’23 earnings call; management plans to resume investor calls with Q2 results in mid-August. Near-term stock reaction drivers are regulatory status (Nasdaq compliance), liquidity runway, and evidence generation for CNSide that could support reimbursement and adoption .

What Went Well and What Went Wrong

What Went Well

FORESEE clinical trial progress: sites activated in Dallas, Los Angeles, and the San Francisco Bay Area; enrollment tracking to plan, aimed at building clinical utility evidence for CNSide and inclusion in care guidelines .
Commercialization steps: began requiring lab service agreements for new customers and negotiating with existing clients to facilitate reimbursement and more cost-efficient delivery of CNSide; two agreements signed to date .
Cost discipline: management highlighted cost-control measures instituted over the past year to drive down expenses; Q1’23 operating expenses declined materially vs. Q1’22 (G&A $2.988M vs. $6.256M; S&M $0.715M vs. $3.658M; R&D $1.040M vs. $1.846M) .

What Went Wrong

Revenue collapse: net revenues fell to $0.673M vs. $19.945M in Q1’22 as COVID testing ended in February; commercial accessions plunged to 3,085 from 153,056 YoY .
Losses widened: loss from operations increased to $(7.098)M in Q1’23 vs. $(2.149)M in Q1’22; net loss per share deteriorated to $(0.41) vs. $(0.13) YoY .
Nasdaq non-compliance risk: stockholders’ equity of $2.428M as of March 31, 2023 triggered a deficiency notice under Nasdaq Rule 5550(b), creating listing risk and heightening uncertainty for equity holders .

Financial Results

Year-over-Year (Q1 2022 → Q1 2023)

Metric (USD Millions unless noted)	Q1 2022 (older)	Q1 2023 (newer)
Net Revenues	$19.945	$0.673
Cost of Revenues	$10.334	$3.028
Total Costs & Expenses	$22.094	$7.771
Loss from Operations	$(2.149)	$(7.098)
Net Loss	$(2.210)	$(7.144)
Net Loss per Share (Basic/Diluted)	$(0.13)	$(0.41)
Weighted Avg Shares (Basic)	16.850M	17.621M

Trend (Q2 2022 → Q3 2022 → Q1 2023)

Metric (USD Millions unless noted)	Q2 2022 (older)	Q3 2022	Q1 2023 (newer)
Net Revenues	$10.611	$5.587	$0.673
Cost of Revenues	$8.023	$5.776	$3.028
R&D	$1.729	$1.366	$1.040
G&A	$4.300	$3.047	$2.988
Sales & Marketing	$1.656	$0.975	$0.715
Net (Loss) / Income	$(5.252)	$(5.545)	$(7.144)
EPS (Basic)	$(0.31)	$(0.33)	$(0.41)

Liquidity Bridge

Metric	Dec 31, 2022 (older)	Mar 31, 2023 (newer)
Cash & Cash Equivalents ($USD Millions)	$12.897	$6.774
Stockholders’ Equity ($USD Millions)	$8.860	$2.428
Total Assets ($USD Millions)	$30.873	$22.993
Total Liabilities ($USD Millions)	$22.013	$20.565

KPIs and Operational Indicators

KPI	Q2 2022 (older)	Q3 2022	Q1 2023 (newer)
Commercial Accessions (units)	77,779	49,874	3,085
Avg Value per Accession ($USD)	$135	$111	N/A
RT-PCR COVID Revenue Included	$9.8M	$4.7M	Ceased in Feb 2023

Note: Company ceased COVID-19 testing services in February 2023; Q1’23 revenue reflects transition to core oncology diagnostics (CNSide) .

Segment breakdown: Not applicable; the company does not report segments in these releases .

Guidance Changes

No formal quantitative guidance (revenue, margins, OpEx, EPS) was provided for Q1 2023 or FY 2023. Management indicated plans to resume quarterly investor calls with Q2 reporting in mid-August and emphasized cost controls and lab service agreements to improve reimbursement and expense structure .

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2023	Not provided	Not provided	Maintained (no guidance)
Operating Expenses	FY 2023	Not provided	Cost-control measures ongoing (qualitative)	N/A
Testing Strategy	FY 2023	COVID testing diminishing	COVID testing ceased Feb 2023	Lowered (COVID eliminated)
Capital/Liquidity	Near-term	Not provided	Exploring strategic alternatives; staff reduction ~35–36% to extend runway	N/A

Earnings Call Themes & Trends

No Q1’23 call held; management plans to resume with Q2 results in mid-August .

Topic	Previous Mentions (Q-2: Q3 2022)	Previous Mentions (Q-1: FY 2022 release as proxy for Q4)	Current Period (Q1 2023)	Trend
CNSide clinical utility and adoption	CNSide orders +8% QoQ; +176% YoY; first FORESEE site open; UCSF study participation	Emphasis on CNSide; decision to focus development/commercialization; enrollment opened for FORESEE	FORESEE enrollment on plan; sites activated; manuscripts planned; broader physician/payor use targeted	Improving evidence generation
Reimbursement/Lab Service Agreements	—	Requiring majority of academic/hospital customers to sign lab service agreements; added regional in-network payors	All new customers required to sign; negotiations ongoing with existing clients; two signed to date	Building infrastructure; slow initial traction
COVID-19 testing revenue	$4.7M in Q3; decline vs. prior year	2022 revenue decline vs. 2021; plan to end COVID testing by Jan 2023	COVID testing ceased Feb 2023; drove revenue collapse	Structural exit completed
Cost Controls/Headcount	Lower S&M commissions; lower stock comp and headcount	>40% headcount reduction vs. pre-COVID; broader cost-efficiency measures	Continued expense reductions cited	Ongoing discipline
Regulatory/Listing	—	—	Nasdaq deficiency on stockholders’ equity; plan submission timeline	Negative risk introduced
Strategic Alternatives	—	Strategic alternatives announced; EF Hutton engaged	Continuation implied; not expanded in Q1 PR	Ongoing exploration

Management Commentary

“I’m exceptionally pleased with the progress being made with our FORESEE clinical trial… designed to generate evidence of CNSide’s clinical utility to support adoption into clinical care guidelines and further broaden physician use.” — Samuel D. Riccitelli, Chairman & interim President/CEO .
“We have begun requiring all new customers to sign lab service agreements… nearly half of our existing clients have engaged… although the program has yielded only two signed agreements to date, we are hopeful this will allow us to continue to offer CNSide in a more cost-effective manner.” .
“We’ve implemented cost-efficiency measures… reducing services from outside vendors and lowering headcount by more than 40% from our pre-COVID-19 testing level… executed a few new regional in-network payor agreements that will allow for improved reimbursement for certain CNSide testing.” .
“We remain excited by the potential of CNSide… However, we must preserve our remaining resources to extend our cash runway to better explore strategic alternatives.” .

Q&A Highlights

No Q1’23 earnings call or transcript was available; management stated investor calls will resume with Q2 results in mid-August .

Estimates Context

Wall Street consensus (S&P Global) for Q1 2023 EPS and revenue was unavailable due to missing Capital IQ mapping for BIOCQ; therefore, no estimate comparison can be made at this time. Values could not be retrieved from S&P Global for BIOCQ for Q1 2023.

Key Takeaways for Investors

Business reset complete: COVID testing exit in Feb 2023 resets revenue base to core oncology diagnostics (CNSide); expect near-term low revenue until reimbursement and adoption scale .
Evidence-driven adoption: FORESEE trial progress and peer-reviewed publications are critical to payer coverage and clinical guideline inclusion; monitor manuscript submissions and site activations as catalysts .
Reimbursement infrastructure: lab service agreements and regional in-network payors should improve collections but early traction is slow (two agreements signed); watch for pace of contract wins .
Cost discipline vs. runway: OpEx reductions are evident, but cash declined to $6.774M by March 31; strategic alternatives and further cost actions likely necessary to extend runway .
Listing risk: Nasdaq equity deficiency adds headline and technical risk; approval and successful execution of a compliance plan is a near-term overhang .
Estimates and visibility: With no formal guidance and unavailable consensus data, buyside models should recalibrate for a small revenue base and negative operating leverage near-term; upside hinges on CNSide adoption and reimbursement milestones .
Trading implications: Stock likely sensitive to regulatory updates (Nasdaq), liquidity actions (financing/strategic transactions), and clinical/reimbursement newsflow from CNSide and FORESEE; absence of an earnings call limits near-term narrative but Q2 call in August may serve as an inflection point .

BIOCEPT INC (BIOCQ)·Q1 2023 Earnings Summary