Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $4.2 million, a 37% increase from $3.1 million in Q1 2024, primarily driven by higher instrument consumable and service revenue [23] - Gross profit for Q1 2025 was $2.1 million, representing a gross margin of 49%, compared to $1.4 million and 44% in Q1 2024 [25] - Net loss for Q1 2025 was $19.9 million, compared to $20.7 million in Q1 2024 [27] - Free cash flow loss was approximately $12.1 million for Q1 2025, with expectations of a full-year loss in the range of $40 million to $45 million [27][28] Business Line Data and Key Metrics Changes - Product revenue for Q1 2025 was $2.9 million, including $5,000 from related party revenue, consisting of sales of proteograph instruments and consumable kits [23] - Service revenue for Q1 2025 was $1.2 million, primarily from STACK service projects, indicating strong customer interest [24] - Other revenue was $60,000 for Q1 2025, consisting of lease and shipping revenue [25] Market Data and Key Metrics Changes - Approximately 30% of total revenue comes from academic and government entities, with expectations of weakening in these segments for 2025 [30][42] - The company has not seen direct effects on its supply chain from recent tariffs, as key suppliers manufacture products in the U.S. [31] Company Strategy and Development Direction - The company aims to focus on four key growth drivers in 2025: expanding the user base, driving larger cohort studies, continuing product innovation, and enabling customers to generate actionable biological insights [34] - The partnership with Thermo Fisher Scientific to co-market the Proteograph product suite alongside their Orbitrap Astro Mass Spectrometer is expected to enhance commercial reach [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term vision despite near-term macroeconomic volatility, including tariffs and government funding challenges [6][7] - The company reiterated its full-year 2025 revenue guidance of $17 million to $18 million, representing 24% year-over-year growth at the midpoint [7][29] - Management noted that while there is cautious optimism, the macroeconomic environment remains uncertain, particularly regarding NIH funding and potential tariffs affecting customers [30][45] Other Important Information - The company ended Q1 2025 with approximately $285 million in cash, cash equivalents, and investments, which is seen as a key differentiator in the current environment [8][28] - The company continues its share repurchase program, believing there is a significant dislocation between its core value proposition and stock price [8][27] Q&A Session Summary Question: Can you walk us through the magnitude of the Discovery Life Sciences project? - The project involves a 10,000 sample study aimed at understanding potential biomarker signatures, expected to take 12 to 18 months [36][38] Question: What are the updated expectations for U.S. academic and government customers? - Academic and government customers represent about 30% of revenue, with expectations of weakening in 2025, but Q1 showed stability in revenue and instrument placement [42][44]

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Seer, Inc.'s unaudited condensed consolidated financial statements for Q1 2025 report a **net loss of $19.9 million** and **$285.3 million in cash and investments** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$347,261** | **$366,597** | | Cash and cash equivalents | $52,445 | $40,753 | | Total investments | $232,859 | $258,760 | | **Total Liabilities** | **$36,255** | **$39,028** | | **Total Stockholders' Equity** | **$311,006** | **$327,569** Condensed Consolidated Statements of Operations (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total Revenue** | **$4,205** | **$3,066** | | Gross Profit | $2,061 | $1,361 | | Total Operating Expenses | $22,792 | $26,553 | | Loss from Operations | $(20,731) | $(25,192) | | **Net Loss** | **$(19,948)** | **$(20,679)** | | Net Loss Per Share | $(0.34) | $(0.32) | Condensed Consolidated Statements of Cash Flows (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(11,417) | $(10,456) | | Net cash provided by investing activities | $24,611 | $32,355 | | Net cash used in financing activities | $(1,502) | $0 | | **Net increase in cash, cash equivalents and restricted cash** | **$11,692** | **$21,899** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes clarify liquidity, significant customer concentration, related-party revenue from PrognomiQ, and **$25.4 million in operating lease liabilities** - Management believes that its cash, cash equivalents, and investments of **$285.3 million** as of March 31, 2025, are sufficient to fund operations for at least the next twelve months, despite an accumulated deficit of **$412.3 million**[31](index=31&type=chunk) - In Q1 2025, two customers accounted for **12%** and **10%** of total revenue. In Q1 2024, one related-party customer accounted for **31%** of total revenue. Revenue generated outside the U.S. increased from **13%** in Q1 2024 to **37%** in Q1 2025[35](index=35&type=chunk) - The company holds an investment in PrognomiQ, which is accounted for as an equity method investment. The carrying value was **$5.8 million** as of March 31, 2025. Seer recognized **$51.9 thousand** in related party revenue from PrognomiQ in Q1 2025, down from **$1.0 million** in Q1 2024[78](index=78&type=chunk)[80](index=80&type=chunk) - As of March 31, 2025, the company has total operating lease liabilities of **$25.4 million**, primarily for its office and laboratory space in Redwood City, CA, with a lease term ending in September 2032[69](index=69&type=chunk)[73](index=73&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial performance, noting a **37% revenue increase to $4.2 million**, a **14% decrease in operating expenses**, and a **net loss of $19.9 million** [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Q1 2025 saw **total revenue increase by 37% to $4.2 million**, driven by product and service sales, while **operating expenses decreased by 14%**, narrowing the **loss from operations by 18%** Comparison of Results of Operations (in thousands) | Line Item | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **$4,205** | **$3,066** | **$1,139** | **37%** | | Product Revenue | $2,890 | $1,668 | $1,222 | 73% | | Service Revenue | $1,203 | $408 | $795 | 195% | | Related Party Revenue | $52 | $954 | $(902) | (95)% | | **Gross Profit** | **$2,061** | **$1,361** | **$700** | **51%** | | R&D Expenses | $11,350 | $12,265 | $(915) | (7)% | | SG&A Expenses | $11,442 | $14,288 | $(2,846) | (20)% | | **Loss from Operations** | **$(20,731)** | **$(25,192)** | **$4,461** | **(18)%** | - The decrease in R&D expenses was primarily due to a **$0.4 million** decrease in laboratory expenses and a **$0.3 million** decrease in stock-based compensation[104](index=104&type=chunk) - The decrease in SG&A expenses was primarily due to a **$2.3 million** decrease in stock-based compensation[105](index=105&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, Seer held **$285.3 million in cash and investments**, with **$11.4 million used in Q1 2025 operating activities**, and sufficient capital for the next twelve months - Net cash used in operating activities was **$11.4 million** in Q1 2025, primarily due to a net loss of **$19.9 million**, partially offset by non-cash charges like stock-based compensation (**$4.7 million**) and depreciation (**$1.6 million**)[113](index=113&type=chunk) - Net cash provided by investing activities was **$24.6 million**, resulting from **$87.6 million** in proceeds from maturities of securities, offset by **$62.7 million** in purchases of securities[115](index=115&type=chunk) - Net cash used in financing activities was **$1.5 million**, attributable to share repurchases (**$0.7 million**) and taxes paid for RSU settlements (**$0.8 million**)[117](index=117&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk occurred during Q1 2025 compared to the 2024 Annual Report on Form 10-K disclosures - There were no material changes in market risk during Q1 2025[122](index=122&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective[123](index=123&type=chunk) - No changes occurred in the company's internal control over financial reporting during Q1 2025 that have materially affected, or are reasonably likely to materially affect, these controls[125](index=125&type=chunk) [PART II. OTHER INFORMATION](index=30&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings, though it may be involved in ordinary course legal matters - Seer, Inc. is not currently a party to any material legal proceedings[128](index=128&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) This section outlines various risks, including historical net losses, market acceptance of products, supply chain dependencies, regulatory hurdles, intellectual property challenges, and stock price volatility [Risks Related to Business and Industry](index=31&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Industry) Key business risks include a history of net losses, dependence on Proteograph Product Suite market acceptance, reliance on a single contract manufacturer, and competition from larger companies - The company is an early-stage life sciences company with a history of net losses, incurring **$19.9 million in net loss** for Q1 2025, and an accumulated deficit of **$412.3 million** as of March 31, 2025[131](index=131&type=chunk) - Commercial success depends on broad scientific and market acceptance of the Proteograph Product Suite, which is subject to adoption curves and influenced by key opinion leaders and peer-reviewed publications[143](index=143&type=chunk)[145](index=145&type=chunk) - The company relies on a single contract manufacturer, Hamilton Company, for its SP100 automation instruments, posing a supply chain risk if Hamilton fails to perform[169](index=169&type=chunk) [Risks Related to Regulatory Compliance](index=53&type=section&id=Risks%20Related%20to%20Regulatory%20Compliance) Regulatory risks include the need for FDA clearance if products shift from Research Use Only to clinical diagnostics, potential FDA reclassification, and uncertainty from evolving regulations like the LDT final rule - Products are currently labeled for Research Use Only (RUO), but if the company seeks to market them for clinical diagnostics, it would require FDA 510(k) clearance or Premarket Approval (PMA)[219](index=219&type=chunk) - The FDA could deem the company's products to be medical devices even without a change in marketing, particularly if customers use them for clinical purposes, which would subject Seer to significant regulatory requirements[225](index=225&type=chunk)[226](index=226&type=chunk) - Recent legislative and regulatory proposals, such as the VALID Act and the FDA's final rule to regulate LDTs, create significant uncertainty regarding the future regulatory framework for products like the Proteograph[227](index=227&type=chunk) [Risks Related to our Intellectual Property](index=56&type=section&id=Risks%20Related%20to%20our%20Intellectual%20Property) Intellectual property risks include challenges in obtaining and enforcing patents, ongoing legal challenges to licensed patents, reliance on a key license from Brigham and Women's Hospital, and potential U.S. government march-in rights - The company's ability to commercialize its products may be impaired if it cannot obtain and maintain sufficient intellectual property protection, as competitors could develop similar products[231](index=231&type=chunk) - The company's licensed patents are currently being challenged. PreOmics GmbH and Biognosys AG filed a petition for Inter Partes Review against a key U.S. patent, and an anonymous third party initiated nullity actions against the corresponding European patent in Germany[251](index=251&type=chunk) - The company relies on an exclusive license from Brigham and Women's Hospital (BWH) for key technology. Termination of this license or failure by BWH to enforce the patents could harm Seer's ability to commercialize its products[277](index=277&type=chunk)[278](index=278&type=chunk) [Risks Related to Ownership of Class A Common Stock](index=73&type=section&id=Risks%20Related%20to%20Ownership%20of%20Our%20Class%20A%20Common%20Stock) Risks related to Class A common stock include price volatility, concentrated voting power due to a dual-class structure, and the absence of anticipated future dividends - The market price of the Class A common stock has been and may continue to be volatile due to factors like operating results, competitor announcements, and market conditions[295](index=295&type=chunk) - The dual-class stock structure concentrates **42.5% of voting power** with Class B stockholders as of May 6, 2025, allowing them to control matters submitted for stockholder approval. All Class B stock will automatically convert to Class A on December 9, 2025[298](index=298&type=chunk)[299](index=299&type=chunk) - The company does not anticipate paying dividends in the foreseeable future, and any return on investment will be limited to potential stock value appreciation[308](index=308&type=chunk) [Unregistered Sales of Equity Securities and Issuer Purchases of Equity Securities](index=86&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities) The company reported no unregistered equity sales and repurchased **352,000 Class A common shares** for **$0.7 million** in Q1 2025, with **$12.6 million** remaining for future repurchases - There were no unregistered sales of equity securities during the period[337](index=337&type=chunk) Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Approx. Value Remaining for Purchase ($ thousands) | | :--- | :--- | :--- | :--- | | January 2025 | 0 | $— | $13,249 | | February 2025 | 0 | $— | $13,249 | | March 2025 | 352,000 | $1.91 | $12,577 | | **Total** | **352,000** | **$1.91** | | [Other Information](index=86&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the last fiscal quarter - No directors or officers adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter[341](index=341&type=chunk) [Exhibits](index=87&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and the amended Outside Director Compensation Policy - Exhibits filed include CEO and CFO certifications (Exhibits 31.1, 31.2, 32.1, 32.2) and Inline XBRL data files[343](index=343&type=chunk)

[Financial & Operational Highlights](index=1&type=section&id=Recent%20Highlights) Seer reported strong Q1 2025 results with 37% revenue growth to $4.2 million, driven by accelerated Proteograph Product Suite adoption - CEO Omid Farokhzad highlighted strong Q1 performance despite macroeconomic headwinds, noting continued momentum for the Proteograph Product Suite[2](index=2&type=chunk) - The company shipped as many instruments in Q1 2025 as in all of 2024, indicating **accelerating adoption**[2](index=2&type=chunk) - A significant contract was secured with a new customer for a **10,000-sample study**, in collaboration with Discovery Life Sciences[6](index=6&type=chunk) Key Q1 2025 Metrics | Metric | Value | | :--- | :--- | | Q1 2025 Revenue | $4.2 million | | Cash, cash equivalents and investments | ~$285 million | [First Quarter 2025 Financial Results](index=1&type=section&id=First%20Quarter%202025%20Financial%20Results) Seer's Q1 2025 revenue grew 37% to $4.2 million, with improved gross margin and reduced operating expenses, narrowing the net loss Q1 2025 vs Q1 2024 Financial Performance | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Total Revenue | $4.2 million | $3.1 million | +37% | | Gross Profit | $2.1 million | $1.4 million | +51% | | Gross Margin | 49% | 44.4% | +4.6 p.p. | | Operating Expenses | $22.8 million | $26.6 million | -14% | | Net Loss | ($19.9 million) | ($20.7 million) | +3.9% | Q1 2025 Revenue Breakdown | Revenue Source | Amount | | :--- | :--- | | Product Revenue | $2.9 million | | Service Revenue | $1.2 million | | Other Revenue | $60 thousand | - The **14% decrease in operating expenses** was primarily driven by reduced stock-based compensation (from **$7.2 million to $4.5 million**) and lower laboratory expenses[4](index=4&type=chunk) [Full Year 2025 Guidance](index=2&type=section&id=2025%20Guidance) Seer reiterated its full-year 2025 financial outlook, signaling confidence in its continued growth trajectory - The company expects full-year 2025 revenue to be in the range of **$17 million to $18 million**[7](index=7&type=chunk) - This guidance represents a **24% growth** at the midpoint over full-year 2024 revenue[7](index=7&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) This section presents unaudited Consolidated Statements of Operations and Balance Sheets for Q1 2025, detailing financial performance and position [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2025 total revenues reached $4.2 million (up 37%), gross profit rose to $2.1 million, and reduced operating expenses led to a $19.9 million net loss Consolidated Statements of Operations (Unaudited, in thousands) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | **2025** | **2024** | | **Total revenue** | **$4,205** | **$3,066** | | Total cost of revenue | 2,144 | 1,705 | | **Gross profit** | **2,061** | **1,361** | | Research and development | 11,350 | 12,265 | | Selling, general and administrative | 11,442 | 14,288 | | **Total operating expenses** | **22,792** | **26,553** | | **Loss from operations** | **(20,731)** | **(25,192)** | | Total other income | 884 | 4,513 | | **Net loss** | **$(19,948)** | **$(20,679)** | | **Net loss per share, basic and diluted** | **$(0.34)** | **$(0.32)** | [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, Seer reported total assets of $347.3 million, with $285 million in cash and investments, and total stockholders' equity of $311.0 million Consolidated Balance Sheet Highlights (Unaudited, in thousands) | | **March 31, 2025** | **December 31, 2024** | | :--- | :--- | :--- | | Cash and cash equivalents | $52,445 | $40,753 | | Total investments | $232,859 | $258,760 | | **Total assets** | **$347,261** | **$366,597** | | Total current liabilities | $13,196 | $15,328 | | **Total liabilities** | **$36,255** | **$39,028** | | **Total stockholders' equity** | **$311,006** | **$327,569** | - The company's total cash, cash equivalents, and investments stood at approximately **$285.3 million** as of March 31, 2025[5](index=5&type=chunk)[15](index=15&type=chunk)

Core Insights - Seer, Inc. reported a revenue growth of 37% in Q1 2025, reaching $4.2 million compared to $3.1 million in the same period last year, driven by increased product sales and service revenue [4][6] - The company shipped as many Proteograph instruments in Q1 2025 as it did in all of 2024, indicating strong momentum in product demand [3][9] - Seer expects full-year 2025 revenue to be between $17 million and $18 million, representing a 24% growth at the midpoint compared to 2024 [7] Financial Performance - Product revenue for Q1 2025 was $2.9 million, while service revenue was $1.2 million, contributing to the overall revenue increase [4][13] - Gross profit for the quarter was $2.1 million, with a gross margin of 49% [5][13] - Operating expenses decreased by 14% to $22.8 million, primarily due to lower stock-based compensation and laboratory expenses [5][13] Net Loss and Cash Position - The net loss for Q1 2025 was $19.9 million, slightly improved from a net loss of $20.7 million in the same period last year [6][14] - As of March 31, 2025, the company had approximately $285 million in cash, cash equivalents, and investments [6][9] Strategic Developments - Seer secured a significant contract with a new customer for a 10,000-sample study in collaboration with Discovery Life Sciences [9] - The company is accelerating third-party validation of its platform through an increasing number of customer publications and webinars [9] Market Context - The CEO highlighted the ongoing macroeconomic headwinds affecting the life sciences industry but maintained a long-term vision for the company [3]

Company Overview - Seer, Inc. is a leading life sciences company focused on commercializing a new platform for proteomics [1][3] - The company has developed the Proteograph™ Product Suite, which includes engineered nanoparticles, consumables, automation instrumentation, and software for deep proteomic analysis [3] Financial Announcement - Seer, Inc. will report its financial results for the first quarter of 2025 on May 13, 2025 [1] - A conference call will be webcasted starting at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time [1][2] Product Details - The Proteograph Product Suite is designed for efficient and easy use, allowing for unbiased proteomic analysis at scale within hours [3] - The product is intended for research use only and is not meant for diagnostic procedures [3]

Seer, Inc. (SEER) has been beaten down lately with too much selling pressure. While the stock has lost 16.6% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.How to Determine if a Stock is OversoldWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator tha ...

A downtrend has been apparent in Seer, Inc. (SEER) lately with too much selling pressure. The stock has declined 16.8% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.Here is How to Spot Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spot ...

Core Viewpoint - Seer, Inc. (SEER) has experienced a significant downtrend, with a 10.5% decline in stock price over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Group 1: Stock Performance and Technical Indicators - The stock is currently oversold, indicated by an RSI reading of 26.76, which is below the typical threshold of 30 [5]. - The heavy selling pressure on SEER shares appears to be exhausting, indicating a possible reversal in the stock's trend [5]. Group 2: Earnings Estimates and Analyst Consensus - Over the last 30 days, the consensus EPS estimate for SEER has increased by 10.8%, reflecting strong agreement among analysts regarding improved earnings [6]. - SEER holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [7].

Financial Performance - The company incurred net losses of $86.6 million and $86.3 million in 2024 and 2023, respectively, with an accumulated deficit of $392.4 million as of December 31, 2024[203]. - The company has a limited operating history, making it difficult to predict future performance and viability[204]. - Fluctuations in operating results may occur due to factors such as demand for products, sales cycle length, and competition[208]. - The company may need to raise additional capital to fund commercialization plans for the Proteograph Product Suite[281]. - The company believes its current cash, cash equivalents, and investments will be sufficient for at least twelve months from the date of the Annual Report[281]. - The company may consider raising additional capital for expanding sales and marketing efforts for the Proteograph Product Suite[282]. Product Development and Commercialization - The company is in the early stages of commercialization of the Proteograph Product Suite, which may not be successfully executed as planned due to various challenges[216]. - The company expects to continue to devote substantially all resources towards the development and commercialization of the Proteograph Product Suite and related products and services[203]. - The success of the Proteograph Product Suite depends on broad scientific and market acceptance, which may take longer than anticipated[218]. - The commercialization success of the Proteograph Product Suite is contingent upon establishing capabilities and value propositions with key opinion leaders and customers[218]. - Future revenue growth will depend on the successful enhancement and introduction of new products and services related to the Proteograph[228]. - The company anticipates that the Proteograph Product Suite will increase study sizes for customers, which is crucial for consumable sales and associated revenue[242]. Market Risks and Competition - The market for the Proteograph Product Suite may be smaller than estimated, and new market opportunities may not develop as quickly as expected, limiting sales potential[214]. - The company faces significant competition in the life sciences technology market from companies like Agilent Technologies and Thermo Fisher Scientific[277]. - Economic downturns and reduced research funding could adversely affect demand for the Proteograph Product Suite and overall business operations[232][245]. - The company faces risks in successfully commercializing the Proteograph Product Suite due to limited experience in sales and marketing, which may impact market acceptance[225]. Operational Challenges - The company faces risks related to recruiting and retaining qualified employees, which may impact operations[206]. - The ability to maintain effective internal controls is crucial for accurate financial reporting, affecting investor confidence[206]. - The company must enhance operational functions, including customer support and quality assurance, to support the commercialization of the Proteograph Product Suite[258]. - The company relies on external suppliers and service providers, which adds complexity and risk to the management of development projects[229]. - The company relies on a single contract manufacturer, Hamilton Company, for the production of its instruments, which poses risks if Hamilton fails to meet demand or quality standards[250]. - There is a risk of supply chain disruptions due to reliance on limited suppliers for critical components, which could hinder production capabilities[253]. Regulatory and Compliance Issues - The company faces potential risks related to compliance with international regulations, including the European Union's GDPR, which could increase operational costs and affect revenue[270]. - The company’s products are currently labeled as research use only (RUO) and are not intended for diagnostic procedures, which may require FDA approval if marketed as medical devices[299]. - The FDA's new Quality Management System Regulation (QMSR) will be enforced starting February 2, 2026, replacing the previous Quality System Regulations (QSR)[300]. - Regulatory compliance costs may increase due to new FDA regulations and potential litigation regarding the regulation of laboratory developed tests (LDTs)[308]. - The company faces risks related to compliance with foreign regulatory requirements, which can vary significantly and impact the commercialization of products outside the U.S.[304]. Intellectual Property Risks - The company relies on patent protection for its products, and failure to maintain adequate intellectual property protection could impair its competitive position[312]. - The patent application process is costly and time-consuming, and there is uncertainty regarding the issuance and enforceability of patents[316]. - Changes in patent laws or interpretations may diminish the value of the company's intellectual property, leading to increased competition[317]. - The company may face claims regarding the wrongful use or disclosure of confidential information, which could lead to litigation and increased competition[354]. - The company relies on licenses from third parties, including BWH, for critical technologies, and losing these licenses could significantly harm its ability to develop and commercialize products[358]. Stock and Market Considerations - The company has a share repurchase program authorized for up to $25.0 million of its Class A common stock[388]. - The market price of the company's Class A common stock has been volatile, influenced by factors such as product commercialization and operating results[378]. - The company may not successfully maintain compliance with Nasdaq listing requirements, which could impair liquidity and market price[377]. - The company does not anticipate paying any dividends in the foreseeable future, focusing instead on retaining earnings for operations and R&D[393].

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $4 million, a decrease of 10% compared to $4.4 million in Q4 2023, primarily due to lower instrument sales and no grant revenue recognized in the quarter [34] - Full-year 2024 total revenue was $14.2 million, representing a decrease of 15% compared to $16.7 million in 2023 [39] - Net loss for Q4 2024 was $21.7 million compared to $17.8 million in Q4 2023, while the full-year net loss was $86.6 million compared to $86.3 million in 2023 [39][46] - Gross profit for Q4 2024 was $2 million with a gross margin of 51%, compared to $2 million and a gross margin of 45% in Q4 2023 [37] Business Line Data and Key Metrics Changes - Product revenue for Q4 2024 was $2.4 million, including $36,000 of related party revenue, consisting of sales of SP100 instruments and consumable kits [34] - Service revenue for Q4 2024 was $1.6 million, primarily related to STAC service projects [36] - Full-year product revenue was $10.2 million, including $1.5 million of related party revenue, while service revenue was $3.8 million for the full year [41] Market Data and Key Metrics Changes - The company served over 135 customers across 20 countries, with significant demand from large biopharma companies [10][22] - Approximately 12% of total revenue in 2024 came from government entities, with an additional 18% from academic groups [80] Company Strategy and Development Direction - The company aims to transition from a pioneer of deep unbiased proteomics to a trusted partner for discovery and translational studies [11] - Strategic initiatives include validating the platform, enhancing access to the Proteograph product suite, and driving innovation through technology enhancements [12] - The company plans to continue investing in direct sales and support throughout 2025 to capitalize on increasing demand [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth despite ongoing macroeconomic challenges, expecting revenue in the range of $17 million to $18 million for 2025, representing a 24% growth at the midpoint over 2024 [51] - The NIH and government funding environment remains uncertain, which may impact revenue from government and academic customers [52][84] Other Important Information - The company repurchased approximately 6.5 million shares during 2024, reducing total shares outstanding by approximately 10% [47] - Free cash flow loss was approximately $49.4 million for 2024, significantly less than the loss of $66.4 million in 2023 [49] Q&A Session Summary Question: Guidance for 2025 and instrument placement - Management indicated that instrument placements in 2025 are expected to be significantly different from 2024, with a stronger pipeline anticipated [58][60] Question: STAC program performance and revenue trajectory - Management noted that STAC revenue is expected to increase as technology validation improves, but capacity will remain consistent [66][68] Question: NIH funding risks and customer hesitance - Management acknowledged uncertainty among customers regarding NIH funding, but expressed optimism that science and innovation will prevail [84][86] Question: Publication pipeline for 2025 - Management expects the pace of publications to continue accelerating in 2025, driven by successful customer projects [90][92] Question: Co-marketing agreement with Thermo Fisher - Management is modest in expectations for the Thermo Fisher collaboration in 2025 but remains excited about its potential [101][102]