These contracts point to the versatility of our technology to positively impact a broad spectrum of early drug discovery and development projects. And we look forward to more such announcements in the near future. For example, we continue to make progress on a novel method to express and stabilize GPCR, G protein-coupled receptors, which is an important class of membrane proteins that represent an emerging market in cancer drug discovery. It is worth repeating that while we are clearly hyper focused on securing high-value PEDAL drug discovery contracts, we do recognize that these engagements do take time. To support these efforts, we also have a very active biologics business, wherein formulation development and quality control testing are provided to our pharmaceutical development partners on a fee-for-service basis.
This is relevant because protein therapeutics play a meaningful role in almost every field of medicine. From antibodies to enzymes and hormone treatment, the number and frequency of protein therapeutics brought to market has increased dramatically. But for these therapies to be effective, an optimal dose of the therapy must be properly circulated, delivered and absorbed in the body. Not unlike the efficient predictive accuracy of the PEDAL platform for drug discovery, our biologics capabilities enable us to efficiently streamline and accelerate the formulation process, identify alternative and more viable formulations for commercial production and drug discovery applications. I point this out because this company is well positioned to generate near-term formulations revenue to supplement building a pipeline of milestone-driven PEDAL contracts.
And finally, last quarter, we announced the creation of a Business Advisory Board and the appointment of two individuals with highly relevant yet diverse expertise: Dr. Bernard A. Harris, Jr., who brings with him a wealth of clinical business and operational health care experience; and finance veteran, Andrew Einhorn, who has served as senior finance executive for a broad range of biopharmaceutical companies. As our momentum continues to accelerate, the Business Advisory Board’s insight, expertise and perspectives will be invaluable in our efforts to deliver unique solutions to our drug development partners and creating lasting value for our shareholders. We are seeking many outstanding candidates who would add to the diversity of backgrounds and perspectives as we seek to round out our Business Advisory Board.
At this point, I would like to introduce our new Interim Chief Financial Officer, Josh Blacher. Josh joined us in August and served as our Principal Financial Officer and Principal Accounting Officer. Josh has served as CFO for several public and private life sciences companies. I’m pleased to have Josh on board. And he has already had a positive impact on helping some of our operating businesses focus more on top line growth and profitability, introducing efficiencies in the finance and accounting department and helping roll out a more robust Investor Relations program. At this point, I will turn the call over to Josh to review the financials. Josh?
Josh Blacher: Thank you, Raymond. We ended the third quarter of 2023 with cash and cash equivalents of $11.9 million as compared to $22.1 million as of December 31, 2022. In addition, we have 1.8 million outstanding warrants that represent potential source of capital in the future. We have no long-term debt, so our balance sheet is strong. As of September 30, 2023, stockholders’ equity stood at $11.7 million as compared to $21.8 million as of December 31, 2022. We recorded third quarter 2023 revenue of $715,000 as compared to $456,000 for the third quarter of 2022. Our gross margin in the third quarter of 2023 was 85% as compared to 76% for the third quarter of 2022. Operating expenses were $3.8 million in the third quarter of 2023, down from $4.5 million in the third quarter of 2022.
Net cash used in operating activities was $10.1 million for the nine months ended September 30, 2023, as compared to $9.1 million for the comparable period in 2022. Net cash used in investing activities was approximately $310,000 for the nine months ended September 30, 2023, as compared to $412,000 for the comparable period in 2022. That concludes our financial summary. You can find additional details in our 8-K containing our earnings press release as well as our 10-Q, which is on file with the SEC and available on our website. With that, I’m going to turn the call now over to the operator for Q&A. As a reminder, Dr. Pamela Bush, our Chief Business Officer, is also available for this segment of the call.
Operator:
Raymond Vennare: Irene, thank you very much. So everyone, that concludes our call for today. We hope that you take away from this call that the entire Predictive Oncology team is very excited about the growth trajectory that we are currently on. In the coming quarters, I would anticipate more collaborations and partnerships with some of the world’s leading drug developers and research and academic institutions. And we are very excited to be at the forefront of AI and early drug discovery, playing an important role in the discovery of new oncology drugs, which we believe will not only benefit patients but also create enduring value for our shareholders as well. Thank you again for your support, and I look forward to our next quarterly update in March. Have a good day.
Operator: This concludes today’s conference. Thank you for joining us. You may now disconnect your lines.
