NeoGenomics : Investor Presentation - January 2021

NeoGenomics

Investor Presentation

January 2021

1

Forward-Looking Statements

This presentation has been prepared by NeoGenomics, Inc. ("we," "us," "our," "NeoGenomics" or the "Company") and is made for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities, nor shall there be any sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The information set forth herein does not purport to be complete or to contain all of the information you may desire. Statements contained herein are made as of the date of this presentation unless stated otherwise, and neither this presentation, nor any sale of securities, shall under any circumstances create an implication that the information contained herein is correct as of any time after such date or that information will be updated or revised to reflect information that subsequently becomes available or changes occurring after the date hereof.

This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 relating to business, operations, and financial conditions of the Company. Words such as, but not limited to, "look forward to," "believe," "expect," "anticipate," "estimate," "intend," "plan," "would," "should" and "could," and similar expressions or words, identify forward-looking statements. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, there can be no assurance that its expectations will be realized. Actual results could differ materially from those projected in the Company's forward-looking statements due to numerous known and unknown risks and uncertainties. All forward-looking statements speak only as of the date of this presentation and are qualified in their entirety by this cautionary statement. The Company undertakes no obligation to revise or update this presentation to reflect events or circumstances after the date hereof.

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, (iv) non-cashstock-based compensation expense, and, if applicable in a reporting period, (v) acquisition and integration related expenses, (vi) non-cash impairments of intangible assets, (vii) and other significant non-recurring or non-operating (income) or expenses, including any debt financing costs.

2

Our	We save lives by improving patient care.
Common
Purpose

Quality, integrity, accountability,

Our teamwork, innovation.

Values

NeoGenomics

We are Focused and Genuine

Our

Vision

By providing uncompromising quality, exceptional service and innovative solutions, we are becoming the world's leading cancer testing and information company.

3

Snapshot

One Lab. Vital Answers. Transforming Care for Cancer Patients

• Leading oncology diagnostic company with diversified, "One Lab" approach
• Strong competitive position with long history of market share gains
• Strategic multi-channel foothold in community oncology testing market
• Three synergistic business segments all with double digit growth profiles
• World class culture drives high customer satisfaction and strong brand recognition
• Robust and expanding global oncology testing and information market

Q3 2020 Revenue Mix*

Pharma &

Informatics

15%

Clinical Services

85%

FY 2019 Key Figures

Revenue:

$409MM

Revenue Growth:

47% (>20% organic)

Clinical Test Volume:

987,539

Gross Margin:

48.1%

Adjusted EBITDA:

*Excluding non-coreCOVID-19 PCR Testing

$57MM

4

One Lab. Vital Answers.

Leading oncology diagnostics company, designed to provide innovative diagnostic and data solutions that bridge oncologists, pathologists, and therapeutic development

Clinical Services Division

Pharma Services Division

• Leading oncology reference lab market share for oncologists, pathologists and hospitals
• Comprehensive oncology test menu including all major testing modalities
• Direct national commercial team of ~100 people
• A longstanding reputation for service and quality in the community oncology market

• Leading provider of oncology-focused research and clinical trials services
• Comprehensive support from pre-clinical and research discovery through FDA filing, approval and launch
• Global footprint (U.S., Switzerland, Singapore, China)
• Greater than $185MM(1) in backlog (signed contracts)

Informatics Division

• Formed in 2020 to utilize clinical testing data to address real world problems for Patients and other stakeholders
• Our information platform includes one of the largest cancer testing database, covering the complete spectrum of oncology testing modalities for over 1.6 million patients and growing

5

NOTE:

1. As of September 30, 2020

NeoGenomics

Leading provider of oncology testing and global oncology research services

13 locations across 3 continents

EST. 2004	1	Aliso Viejo, California
EST. 2004	2	Carlsbad, California
EST. 2014	3	La Jolla, California
EST. 2001	4	Houston, Texas
GENOMICS SPECIALTY
INIVATA PARTNER SITE	5	RTP, North Carolina
	6	Nashville, Tennessee
	7	Atlanta, Georgia
	8	Tampa, Florida
EST. 2002 HEADQUARTERS	9	Fort Myers, Florida
INIVATA PARTNER SITE	10	Cambridge, UK
EST. 2017	11	Geneva, Switzerland
IMMUNOLOGY SPECIALTY
EST. 2019	12	Singapore
COMING SOON (Q1 2021)	13	Suzhou, China (2020)

6

Oncology Testing Market Tailwinds

Estimated 6% to 8% annual market growth with upside potential

Demographics

• An aging population is resulting in higher cancer incidence
• Increased cancer survival rates leading to more follow-on testing

Precision Medicine & Drug Development

• Proliferation and complexity of therapeutic options driving more testing
• Burgeoning oncology drug pipeline underlying current Pharma Services demand and likely to drive demand for future clinical testing
• New platforms and tests (NGS, TMB, MSI, liquid biopsy, etc.) creating more test options for diagnosis, prognosis, and therapy selection

Upside Potential: Emerging Opportunities

• Promising minimal residual disease tests in development such as strategic partner Inivata's RaDaR assay could create a compelling recurrence monitoring opportunity
• We expect to develop a number of innovative value-add data offerings

in our growing Informatics division

7

Market Tailwinds: Demographics

An aging population is leading to higher cancer incidence with new precision therapies allowing people to live longer with cancer

	22.2
	Million Cancer
31%	Survivors
Increase

The number of cancer survivors is projected to increase by 31.4%, to 22.2 million, by 2030.

10 years

2030

8

Source: National Cancer Institute

Market Tailwinds: Precision Medicine

Oncology therapies with required or recommended biomarker testing

2019

A dramatic increase in approved precision oncology medicines is driving the need for associated biomarker testing.

2012

200725

17

2016	70

47

9

Source: IQVIA Institute. June 2020

Market Tailwinds: Drug Development

Diagnostic testing is critical as additional drugs gain approval

New oncology molecules are being developed at a record pace. The late phase targeted therapy oncology pipeline increased 100% from 2008 to 2018.

The Pipeline of Late Phase

Oncology Molecules (2008 - 2018)

10

Source: IQVIA Pipeline Intelligence, Dec 2018; IQVIA Institute, May 2019

We Look to Grow at Twice the Market Rate

Significant Company-Specific Growth Drivers

Many years of market share gains validate the power of our competitive differentiation.

			8
			History of strong
			M&A Execution
	7		To complement
		Strong	organic growth
	6
	synergies
5	Significant	with Pharma
	reach into the	Services and

1		2
	The most	Uncompromising
	customer service
	comprehensive
	with exceptional
	test menu in
	turn around time
	oncology Dx -
	on testing
	including
	advanced NGS
	capabilities
	such as liquid
	biopsy

4

3

A tenured and oncology focused best-in-class sales force

Hundreds of contracts with managed care, IDNs, hospital systems, oncology practices and GPOs

Over 120 MDs	community	Informatics
and PhDs on	channel	Divisions
Staff including	positions us well
internationally	for partnerships
renown experts	and strategic
	relationships

11

History of Organic and Inorganic Success

With an ability to succeed in multiple environments

Clinical Testing Annual Revenue / Clinical Tests Performed(1)				Acquired
				$361	1,200
350
300									Dec 2018		1,000
					Acquired				988k
250								$242	800
							$210
							$203	750k
200						Dec 2015
						657k		600
150							563k				400
						$88
100					$79
		$56	$63
		$40							200
50	$32
			223k
			176k
			112k	136k
	57k	76k
0							0
2010	2011	2012	2013	2014	2015	2016	2017	2018	2019

		Clinical Testing Revenue ($MM)		Clinical Tests Performed
Reimbursement challenges		Growth Markets
NeoGenomics has the flexibility to pivot with the environment
(1) Clinical Revenue presented net of bad debt expense to conform with ASC 606 presentation.			12
(2) Base NEO Clinical includes organic clinical revenue and test volume growth and incorporates inorganic contributions from the 2015 acquisition of Clarient (closed Dec. 30th) and the 2018 acquisition of
Genoptix (closed Dec. 10th). Base NEO Clinical excludes the impact from Pharma Services and PathLogic (divested on August 1st, 2017).

Our Focus Is The Community Setting

We bring state-of-the-art oncology testing to the masses

Community Channel

80% to 85% of all cancer patients are treated by community oncologists

Community	Community
Hospital	Oncology Office

NeoGenomics works with >4,400 hospitals, institutions and oncology offices, most in the community

setting, to ensure all patients can benefit from high-quality diagnostic tests to support Precision Medicine

13

Comprehensive Oncology Test Menu

A low Beta approach to a massive high growth end market

Anatomic Pathology

Flow Cytometry

Cytogenetics

FISH

Molecular

•

Consultation pathology

•

10-color flow

•

Extensive automation

•

Robust Library of

•

Next-gen sequencing

•

Immunochemistry

•

MRD detection

for high quality/low

validated probes

•

Liquid biopsy

•

Immunohistochemistry

•

Global and tech-only

cost

•

Global and tech-only

•

Whole exome

•

Digital imaging

service

service

sequencing

•

Automated quantitative

•

Sanger sequencing

IHC

•

Real time qPCR

• Global and tech-only

Flexible

Technology Agnostic

Appropriate

•

SNP microarray

service

Right Test • Right Patient • Right Time

14

A Differentiated Approach To NGS Testing

Multiple modalities and appropriate biomarkers leads to great care at a value

	Targeted Profiles	Broad Based Profiles		Liquid Biopsy
26 NeoTYPE® targeted profiles	Solid Tumor	InVisionFirst®-Lung
•	Multi-Modal	• Discovery Profile: 336 biomarkers	•	37 genes
•	Only appropriate biomarkers	• Precision Profile: 83 biomarkers	• Reflex ordering with NeoTYPE®
• 19 Solid Tumor Profiles	• Universal NGS Fusion Panel: 252		Lung Tissue
•	7 Heme Profiles	genes	NeoLAB® liquid biopsy suite
17 Targeted RNA Fusion Profiles	Hematologic Disease
• 1 Solid Tumor Test
•	High capacity workflow	• NeoTYPE® Myeloid Disorders: 63	•	4 Hematologic Tests
•	Only appropriate biomarkers	genes

• Detection of novel fusions

Flexible

Technology Agnostic

Appropriate

Right Test • Right Patient • Right Time

15

We Are Focused on The Customer

Best-in-class net promoter score

Q4 2020 Clinical Client Survey

How likely is it that you would recommend this company to a friend or colleague?

			Not at all likely				Neutral		Extremely likely
0	1	2	3	4	5	6	7	8	9	10

Detractor	Passive	Promoter
7%	20%	73%
% Promoters - % Detractors = NPS (Net Promoter Score)
	Satisfaction Model
Employee Engagement	Customer Satisfaction
Employee Retention	Client Retention >95%

0

-50	+66	50

NPS

-100100

Shareholder Satisfaction

Achieve Results >Plan

NOTES:	16
1,055 respondents

Competing Through Focus, Scale and Scope

We enjoy a unique position in the clinical market

Clinical Reference Labs with

Oncology Divisions

Diversified Focus

Pure Play Oncology Diagnostic Lab

Comprehensive Test Menu + Sustainable Growth

Leading Share in U.S. Clinical Oncology Market

Comprehensive, multi-modality "One Lab" position

Large and advanced somatic cancer test menu Significant reach into all customer segments National footprint and extensive payer contracts Outstanding client service and partnership models

Synergistic Pharma, Clinical and

Informatics businesses

Niche

Oncology Players

High R&D investment and limited test menus

/

17

Our Ability to Profitably Innovate Enables Sustainable Growth

Three important growth areas in the business today were enabled by leveraging the power of our growing core clinical engine. These initiatives could represent nearly a third of 2021 revenues.

Core Clinical Business

• Growing volumes >10%
• Self-fundinginnovation

Next-generation sequencing

• Nominal % of 2015 revenue
• Now >15% of Clinical revenue
• Growing volumes 25%+
• Comprehensive portfolio
• Larger panels and targeted profiles

Pharma Division

• Nominal % of 2015 revenue
• Now >15% of company revenues
• We are now a global player
• Developing custom assays w/sponsors
• Growing >20%, grew 37% YOY in 2019

Informatics Division

• Formed in 2020
• Enabled by ever-expanding clinical dataset
• Early returns are encouraging
• Fastest growing part of NEO

18

Rapidly Growing Pharma Services Business

Demand has been robust despite ongoing COVID-19 pandemic

$200															$185.4
$180															$172.9
$160										$147.7
$140					$130.4
$120		$118.3
$100
$80
$60												$40.5
$40		$32.8								$34.9
$27.6			$28.4
$20	$12.1	$13.5				$13.0		$15.0		$13.0	$16.7
$0		$(3.2)			$(7.2)					$(13.1)	$(2.3)	$(5.6)
Q3'19			Q4'19						Q1'20			Q2'20	Q3'20
-$20
			Revenue		Booked		Acquired		Cancelled or Dormant			Ending Backlog

19

The Company defines Dormant Projects as projects with no activity for 12 months or longer that have not officially been cancelled by the Sponsor

Uniquely Positioned: Pharma Services

Factors driving pharma services success in the oncology marketplace

Cancer	Comprehensive	Best-in-Class	Global	FDA	CDx Capabilities	Scientific
Focus	Menu	Service &	Footprint	Compliant	Ability to develop and	Leadership
		Customization		Systems	launch CDx

$40MM of new business in Q2 of 2020		A Record $185MM backlog		More than 40 Active Companion
despite COVID-19		exiting Q3 of 2020		Diagnostic Projects Ongoing

Synergies with Clinical & Informatics

20

Informatics

Patient-focused. Data driven.

Our information platform includes one of the largest cancer testing databases,

covering the complete spectrum of oncology testing modalities for over 1.6 million patients.

>1.6M		5 years		>4,400		>435k		>68k		~1M
				Unique active
patients tested		historical data		clinical clients		patients per year			tests/year
				providers

21

Informatics

Primary offerings today

Diagnostic lab alerts and	Clinical trial matching and
commercial analytics	provider outreach

22

Three Divisions That Are Increasingly Synergistic

Innovation and scale has made our three divisions increasingly synergistic over time creating a

flywheel effect.

Informatics

Data-driven insights
to support drug	Clinical
discovery, clinical	Decision
trials &	Support
commercial	Sponsored
activity	testing
	programs

Pharma	Companion	Clinical
Services	Services
Diagnostics

23

Leading Oncology Diagnostics Company

Guided By Science And Passion For Patient Care

We are a leader in	Our extensive	We act as a	We are oncology	Our work is
the field of	patient database	collaborative partner	experts focused on	founded in
diagnostic testing	allows us to	to pathologists,	developing	science, driven
by data, and
with a significant	optimize the	oncologists and	foundational and
upheld to the
share of patient	pairing of	biopharma to deliver	innovative oncology
highest
test volume in	patients with	best-in-class services	laboratory diagnostic
standards
the US	clinical trials	for all	services

When you invest in NeoGenomics, you invest in all of oncology

By helping the

community

oncology field, we

improve lives

24

Appendix

Experience and Scale Matter

Industry Leader in Oncology Diagnostics

>435,000 patients

per year

620+ cancer tests ready for order

26 targeted NeoTYPE®

molecular/FISH/IHC panels

>150 active pharma clients

~1 million cancer-related tests

per year

>50,000 Clinical Next Gen

Sequencing tests per year

#1 lab in PD-L1testing**

>1,500 pharma projects completed

to date

>4,400

hospital, institution and oncology office clients

336 Biomarker solid tumor

discovery panel

#1 lab in breast cancer

testing*

>120

MDs and PhDs

*Data from CMS claims database **Internal data based on test utilization

27

Navigating The COVID-19 Pandemic

Managing the business to emerge stronger

Clinical Services Business

($MM, except for clinical tests)

Clinical Testing Revenue

120		Clinical Cancer Tests Performed	$108.7

100$93.0

80	$73.9	255k
250k
60	205k
40
20
0
Q1'20	Q2'20	Q3'20

• COVID-19PCR testing capabilities have helped hedge against market-wide pandemic related volume declines
• No layoffs were made related to temporary declines in volume
• Low-capacityutilization in Q2'20 provided a rare opportunity to focus on process improvement
• We are actively hiring and believe we are well positioned to take share

NOTE:

1. As of September 30, 2020

400k

350k

300k

250k

200k

150k

100k

50k

0k

($MM)	Pharma Services Business
$40.5
		Revenue
		Net New Bookings	$34.9
$28.4
			$16.7
$13.0	$13.1

Q1'20

Q2'20

Q3'20

• Demand has been robust throughout the pandemic and new contract bookings have broken records
• Many new trials were delayed and ongoing trials saw reduced enrollee counts related to patient access issues due to the pandemic
• Pushed forward with important global infrastructure investments
• Ample capacity and a record backlog (>$185MM(1)) has us excited about near- and long-term growth

28

Well Positioned: Companion Diagnostics

Companion diagnostics are part of the precision medicine

that is driving the future of oncology

Ability to take test	CDx capabilities	Wide scale and	Broad reach to	Access to data
across continuum	translating into	scope across	oncologists	across massive
from development,	customer wins	Pharma and	and pathologists	quantity of
through clinical		Clinical markets		oncology-specific
trials, and into the				test results
market

29

Proving the Point: KEYTRUDA®

• Selected by Merck due to IHC expertise
• Participated in Early Validation Program for Keytruda
• One of only 3 labs to offer PD-L1 testing on Day 1

We remain an industry leader in clinical PD-L1testing

30

Proving the Point: PIQRAY®

• PIK3CA is a gene that is mutated in many breast cancers
• In 2018, when Novartis was in late-stage development for its PIK3CA inhibitor, alpelisib, QIAGEN established a development program to bring to market a molecular test (therascreen® PIK3CA RGQ PCR Kit) as a companion diagnostic to guide the use of alpelisib

In partnership with Novartis and QIAGEN, NeoGenomics was the

Day 1 Preferred Laboratory Partner for this critical PIK3CA CDx

January - May 2019: Clinical validation	April - June 2019: Launch readiness		By December 31, 2019:
NEO pharma services engaged with QIAGEN and Novartis to begin clinical	Pharma Sponsored Testing Program (STP)		Achievement
validation process for PIK3CA to ensure PIK3CA testing available on day 1	prepared and ready for day 1		Novartis revenue was ~$118M and NEO
upon FDA approval				PIK3CA order volume is ~4,000 orders
JAN	FEB	APR	MAY	DEC
	February - June 2019: Clinical launch preparation	May 24, 2019: PIQRAY® (alpelisib) launch and CDx launch

Sponsored testing program, sales materials and training, website development and digital marketing

Hand-off to clinical: STP ready, all materials ready, clinical sales, marketing and medical activated, medical outreach program, sales contest; Novartis revenue target is $30M and NEO PIK3CA order volume target is 1,000 orders

31

Balance Sheet, September 30, 2020

(unaudited, in thousands)

ASSETS

Cash and cash equivalents

Marketable securities, at fair value

Accounts receivable, net

Inventories

Other current assets

Total current assets

Property and equipment (net of accumulated depreciation of $85,987 and $68,809 respectively)

Operating lease right-of-use assets

Intangible assets, net

Goodwill

Restricted cash, non-current

Prepaid lease asset

Investment in non-consolidated affiliate

Other assets

TOTAL ASSETS

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable and other current liabilities

Short-term portion of financing obligations

Short-term portion of operating leases

Total current liabilities

Convertible senior notes, net

Long-term portion of financing obligations

Long-term portion of operating leases

Other long-term liabilities

Deferred income tax liability, net

Total long-term liabilities

TOTAL LIABILITIES

	September 30, 2020		December 31, 2019
	(Unaudited)
$	233,233	$	173,016
	50,375		-
	103,697		94,242
	20,643		14,405
	14,427		9,075
	422,375		290,738
	85,449		64,188
	45,856		26,492
	123,353		126,640
	210,833		198,601
	32,003		-
	10,142		-
	25,600		-
	3,817		2,847
$	959,428	$	709,506
$	56,211	$	50,091
	3,700		10,432
	4,701		3,381
	64,612		63,904
	166,440		-
	1,399		95,028
	43,123		24,034
	3,937		3,566
	13,554		15,566
	228,453		138,194
$	293,065	$	202,098

		TOTAL STOCKHOLDERS' EQUITY			$
		TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$

666,363	$	507,408	32
959,428	$	709,506

Income Statement, September 30, 2020

(unaudited, in thousands)	Three Months Ended September 30, Nine Months Ended September 30,

		2020		2019		2020		2019
NET REVENUE:	$	108,733	$	92,565	$	275,599	$	267,757
Clinical Services
Pharma Services		16,711		12,107		42,852		34,205
Total revenue		125,444		104,672		318,451		301,962
COST OF REVENUE		71,379		53,840		190,011		155,049
GROSS PROFIT		54,065		50,832		128,440		146,913
Operating expenses:		36,128		33,054		107,085		94,773
General and administrative
Research and development		1,964		2,611		6,129		6,407
Sales and marketing		11,304		11,508		34,757		35,048
Total operating expenses		49,396		47,173		147,971		136,228
INCOME (LOSS) FROM OPERATIONS		4,669		3,659		(19,531)		10,685
Interest expense, net		2,458		203		4,825		3,333
Other (income) expense, net		(11)		(35)		(7,639)		5,124
Loss on extinguishment of debt		-		-		1,400		1,018
Loss on termination of cash flow hedge		-		-		3,506		-
Income (loss) before taxes		2,222		3,491		(21,623)		1,210
Income tax (benefit) expense		(335)		1,348		(10,378)		(500)
NET INCOME (LOSS)	$	2,557	$	2,143	$	(11,245)	$	1,710
Adjustment to the numerator for convertible
notes in diluted EPS (3)
NET INCOME (LOSS)		2,557		2,143		(11,245)		1,710
Convertible note accretion, amortization, and		1,975		-		-		-
interest, net of tax
NET INCOME (LOSS) USED IN	$	4,532	$	2,143	$	(11,245)	$	1,710
DILUTED EPS
NET INCOME (LOSS) PER SHARE
Basic	$	0.02	$	0.02	$	(0.10)	$	0.02
Diluted	$	0.04	$	0.02	$	(0.10)	$	0.02
WEIGHTED AVERAGE COMMON								33
SHARES OUTSTANDING
Basic		110,461		103,899		107,605		99,149
Diluted		119,191		107,880		107,605		102,766

Statements of Cash Flows, September 30, 2020

(unaudited, in thousands)

									Nine Months Ended September 30,
									2020							2019
	CASH FLOWS FROM OPERATING ACTIVITIES
		Net (loss) income	$		(11,245)						$		1,710
		Adjustments to reconcile net income to net cash provided by operating activities:
		Depreciation			18,705							15,200
		Loss on disposal of assets							371							451
		Loss on debt extinguishment						1,400							1,018
		Loss on termination of cash flow hedge							3,506								-
		Amortization of intangibles						7,387							7,482
		Amortization of debt issue costs					138							323
		Amortization of convertible debt discount					2,705								-
		Non-cashstock-based compensation					7,536							7,727
		Non-cash operating lease expense			6,365							3,224
		Changes in assets and liabilities, net							(41,393)							(17,125)
		Net cash (used in) provided by operating activities	$		(4,525)	$	20,010
		CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of marketable securities Proceeds from sale of marketable securities Purchases of property and equipment Business acquisition

Investment in non-consolidated affiliate Acquisition working capital adjustment

Net cash used in investing activities

	(53,396)		-
	3,000		-
	(17,591)		(13,953)
	(37,000)		-
	(25,600)		-
	-		399
$	(130,587)	$	(13,554)

		CASH FLOWS FROM FINANCING ACTIVITIES
		Repayment of revolving credit facility						-							(5,000)
		Repayment of equipment financing obligations						(4,331)							(5,481)
		Proceeds from term loan						-							100,000
		Repayment of term loan						(97,540)							(96,750)
		Cash flow hedge termination						(3,317)					-
		Payments of debt issuance costs						-							(1,051)
		Issuance of common stock, net						10,761							10,132
		Proceeds from issuance of convertible debt, net of issuance costs						194,466							-
		Proceeds from equity offering, net of issuance costs						127,293							160,774
		Net cash provided by financing activities					$	227,332						$	162,624
		Net change in cash, cash equivalents and restricted cash	$	92,220			$	169,080

Cash, cash equivalents and restricted cash, beginning of period		173,016		9,811
Cash, cash equivalents and restricted cash, end of period	$	265,236	$	178,891

Reconciliation of cash, cash equivalents and restricted cash to the Condensed Consolidated Balance Sheets:

Cash and cash equivalents

Restricted cash, non-current

Total cash, cash equivalents and restricted cash

$	233,233	$	178,891	34
	32,003		-
$	265,236	$	178,891

Segment Results, September 30, 2020

(unaudited, in thousands)

Three Months Ended September 30,		Nine Months Ended September 30,
2020	2019	% Change	2020	2019	% Change

Clinical Services:
Revenue	$	108,733	$	92,565
Cost of revenue		60,607		47,526
Gross profit	$	48,126	$	45,039
Gross margin		44.3%		48.7%
Pharma Services:

17.5 %	$	275,599	$
27.5 %		158,287
6.9 %	$	117,312	$
		42.6%

267,7572.9 %

136,557 15.9 %

131,200 (10.6)%

49.0%

	Revenue	$	16,711		$	12,107
	Cost of revenue				10,772					6,314
	Gross profit	$		5,939			$		5,793
	Gross margin				35.5%						47.8%

38.0 %	$	42,852	$	34,205	25.3 %
70.6 %		31,724		18,492	71.6 %
2.5 %	$	11,128	$	15,713	(29.2)%
		26.0%		45.9%

Three Months Ended September 30,

Nine Months Ended September 30,

		2020		2019	% Change		2020		2019	% Change
Clinical(8):
Requisitions (cases) received		147,518		145,312	1.5 %		406,250		427,406	(4.9)%
Number of tests performed		255,458		250,518	2.0 %		710,678		735,165	(3.3)%
Average number of tests/requisitions		1.73		1.72	0.6 %		1.75		1.72	1.7 %
Average revenue/requisition	$	622	$	637	(2.4)%	$	632	$	626	1.0 %
Average revenue/test	$	359	$	369	(2.7)%	$	361	$	364	(0.8)%
Average cost/requisition	$	342	$	327	4.6 %	$	361	$	320	12.8 %
Average cost/test	$	197	$	190	3.7 %	$	206	$	186	10.8 %

Clinical tests exclude requisitions, tests, revenue and costs of revenue for Pharma Services and COVID-19 PCR tests.

35

Adjusted EBITDA, September 30, 2020

(unaudited, in thousands)

Three Months Ended September 30,

Nine Months Ended September 30,

2020

2019

2020

2019

Net income (loss) (GAAP)	$	2,557	$	2,143	$	(11,245)	$	1,710
Adjustments to net income (loss):
Interest expense, net		2,458		203		4,825		3,333
Income tax (benefit) expense		(335)		1,348		(10,378)		(500)
Amortization of intangibles		2,468		2,380		7,387		7,482
Depreciation		6,528		4,848		18,705		15,200
EBITDA (non-GAAP)	$	13,676	$	10,922	$	9,294	$	27,225
Further adjustments to EBITDA:
Acquisition and integration related expenses		446		334		1,852		2,143
Other significant non-recurring (income) expenses (4)		(105)		364		(2,100)		6,527
Non-cashstock-based compensation expense		2,715		3,275		7,536		7,727
Adjusted EBITDA (non-GAAP)	$	16,732	$	14,895	$	16,582	$	43,622

36