Vyant Bio, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Revenue and Accounts Receivable

Revenue and Accounts Receivable

3 Months Ended

Mar. 31, 2016

Revenue by service type for the three months ended March 31, 2016 and 2015 is comprised of the following (in thousands):



	Three Months Ended March 31,
	2016		2015
Biopharma Services	$	3,350	$	3,331
Clinical Services	2,456		873
Discovery Services	262		166
	$	6,068	$	4,370

The table above includes approximately $459,000 of biopharma revenue and approximately $1,704,000 of clinical services revenue from our acquisition of Response Genetics for the three months ended March 31, 2016.

Accounts receivable by service type at March 31, 2016 and December 31, 2015 consists of the following (in thousands):



	March 31, 2016			December 31, 2015
Biopharma Services	$	3,334		$	3,238
Clinical Services	5,432			3,733
Discovery Services	347			314
Allowance for doubtful accounts	(664		)	(664		)
	$	8,449		$	6,621



Allowance for Doubtful Accounts (in thousands)
Balance, December 31, 2015	$	664
Additions to allowance for doubtful accounts	—
Balance, March 31, 2016	$	664

Revenue for Biopharma Services are customized solutions for patient stratification and treatment selection through an extensive suite of DNA-based testing services. Clinical Services are tests performed to provide information on diagnosis, prognosis and theranosis of cancers to guide patient management. These tests can be billed to Medicare, another third party insurer or the referring community hospital or other healthcare facility. Discovery Services are services that provide the tools and testing methods for companies and researchers seeking to identify new DNA-based biomarkers for disease. The breakdown of our Clinical Services revenue (as a percent of total revenue) is as follows:



	Three Months Ended March 31,
	2016	2015
Medicare	15%	6%
Other insurers	21%	7%
Other healthcare facilities	4%	7%
	40%	20%

We have historically derived a significant portion of our revenue from a limited number of test ordering sites. Test ordering sites account for all of our Clinical Services and Biopharma Services revenue. Our test ordering sites are largely hospitals, cancer centers, reference laboratories, physician offices and biopharmaceutical companies. Oncologists and pathologists at these sites order the tests on behalf of the needs of their oncology patients or as part of a clinical trial sponsored by a biopharmaceutical company in which the patient is being enrolled. We generally do not have formal, long-term written agreements with such test ordering sites, and, as a result, we may lose a significant test ordering site at any time.

The top five test ordering sites during the three months ended March 31, 2016 and 2015 accounted for 35% and 72%, respectively, of our testing volumes, with 8% and 24%, respectively, of the volume coming from community hospitals. During the three months ended March 31, 2016, there were two biopharmaceutical companies which accounted for approximately 11% and 10% of our total revenue, respectively. During the three months ended March 31, 2015, there were two biopharmaceutical companies which accounted for approximately 29% and 22% of our total revenue, respectively.