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DermTech DermTech Reports First Quarter 2021 Financial Results May 13 , 2021 LA JOLLA , Calif .-- ( BUSINESS WIRE ) -- May 13 , 2021 -- DermTech , Inc. ( NASDAQ : DMTK ) ( “ DermTech " ) , a leader in precision dermatology enabled by a non - invasive skin genomics platform , today reported financial results for the quarter ended March 31 , 2021 . First Quarter 2021 Highlights • Billable sample volume of approximately 9,400 for the first quarter of 2021 , a 62 % increase compared to approximately 5,800 recorded for the first quarter of 2020 and a 13 % sequential increase over the fourth quarter of 2020 . • Assay revenue of $ 2.2 million for the first quarter of 2021 , a 175 % increase compared to the first quarter of 2020 and a 40 % sequential increase over the fourth quarter of 2020 . • Total revenue of $ 2.5 million for the first quarter of 2021 , a 62 % increase compared to the first quarter of 2020 and a 19 % sequential increase over the fourth quarter of 2020 . • Achieved first full quarter with positive assay gross margin of 10 % compared to negative 46 % for the same period of 2020 . • Non - invasive genomic patch testing for melanoma , like DermTech's Pigmented Lesion Assay ( " PLA " ) , received a 2A recommendation from the National Comprehensive Cancer Network® ( " NCCN " ) indicating uniform NCCN consensus that the intervention is appropriate and has been included in the NCCN Clinical Practice Guidelines in Oncology ( the " NCCN GuidelinesⓇ " ) . • Published results of a large registry study that reported lesions biopsied based on genomic atypia criteria identified by the PLA were associated with a nearly five - fold enrichment of melanoma compared to those biopsied solely on visual assessment criteria . • Commercial payor contracts with Blue Shield of California , Blue Cross Blue Shield of Illinois and Blue Cross Blue Shield of Texas became effective , contributing to average selling price improvement . • Raised approximately $ 213 million in total gross proceeds from a follow - on public offering of common stock and the exercise of previously outstanding warrants . • Cash , cash equivalents and short - term marketable securities were $ 258.2 million at the end of the quarter . " Q1 was a very busy quarter for DermTech with the closing of our follow - on public offering , the addition of non - invasive genomic patch testing , like the PLA , to the NCCN guidelines , and the effectiveness of our new contracts with major Blues plans in California , Texas and Illinois , which fueled strong assay revenue growth even during the height of the pandemic , " said John Dobak , M.D. , chief executive officer of Derm Tech . " Data from the Optum economic study further confirms the cost saving potential of our technology , and we are optimistic that it will help in our efforts with commercial payors . Access to physician offices continues to be challenging but we are starting to see some improvements , and we believe the recent launch of our PLAplus will help drive adoption . " First Quarter 2021 Financial Results Assay revenue increased $ 1.4 million , or 175 % , to $ 2.2 million for the three months ended March 31 , 2021 , compared to $ 0.8 million for the same period of 2020. The increase in assay revenue was primarily due to higher billable sample volume and improved average selling price ( " ASP " ) resulting from better cash collections . Billable sample volume increased 61 % to approximately 9,400 for the three months ended March 31 , 2021 , compared to approximately 5,800 for the same period of 2020. Contract revenue decreased $ 0.4 million , or 56 % , to $ 0.3 million for the three months ended March 31 , 2021 , compared to $ 0.8 million for the same period of 2020. Total revenue increased $ 1.0 million , or 62 % , to $ 2.5 million for the three months ended March 31 , 2021 , compared to $ 1.6 million for the same period of 2020 . Gross margin for the three months ended March 31 , 2021 was 21 % , compared to 23 % for the same period of 2020. The decrease in gross margin was largely attributable to decreased contract revenue in the current period , which generally has higher gross margins than assay revenue . Assay gross margin for the three months ended March 31 , 2021 was 10 % , compared to negative 46 % for the same period of 2020. The improvement in assay gross margin was due to improved ASP , and better utilization of current capacity to reduce the per test cost . Sales and marketing expenses for the three months ended March 31 , 2021 were $ 6.5 million , an increase of 121 % , compared to $ 2.9 million for the same period of 2020. The increase was primarily attributable higher compensation costs related to the expansion of our sales force , marketing , and payor access teams as well as additional marketing investments to increase awareness of our Pigmented Lesion Assay . Research and development expenses for the three months ended March 31 , 2021 were $ 2.3 million , an increase of 151 % , compared to $ 0.9 million for the same period of 2020. The increase was due to higher compensation costs of expanding the research and development team , increased clinical trial costs , and increased spend on laboratory supplies to support new product development . General and administrative expenses for the three months ended March 31 , 2021 were $ 5.2 million , an increase of 47 % , compared to $ 3.5 million for the same period of 2020. The increase was primarily due to higher payroll - related costs and stock - based compensation as we continue to add additional infrastructure such as human resources , information technology and legal resources . Net loss for the three months ended March 31 , 2021 was $ 15.1 million , or $ 0.55 per share , which included $ 2.2 million of non - cash stock - based compensation and $ 1.7 million loss related to non - cash change in fair value of warrant liability , compared to a net loss of $ 6.9 million , or $ 0.53 per share , for the same period of 2020 , which included $ 1.0 million of non - cash stock - based compensation , offset by a $ 0.1 million gain related to