[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Teknova reported a 5% year-over-year revenue increase to $9.8 million for Q1 2025, driven by strong performance in its Lab Essentials segment, while announcing a strategic collaboration and maintaining a solid cash position - **Total Revenue** increased by **5%** to **$9.8 million** in Q1 2025 from $9.3 million in Q1 2024[2](index=2&type=chunk)[6](index=6&type=chunk)[7](index=7&type=chunk) - Entered into a collaboration with Pluristyx, Inc. to become the exclusive US and Canadian manufacturer and distributor of the PluriFreeze™ cryopreservation system, **strengthening its cell therapy product portfolio**[2](index=2&type=chunk)[6](index=6&type=chunk) - As of the end of Q1 2025, the company held **$26.3 million** in total cash and short-term investments, with total borrowings of **$13.2 million**[6](index=6&type=chunk) - Management highlighted the company's ability to drive organic growth in an uncertain macroenvironment, citing the criticality of its product portfolio and diverse customer base[3](index=3&type=chunk) [Q1 2025 Financial Performance Analysis](index=2&type=section&id=Q1%202025%20Financial%20Performance%20Analysis) The company's financial performance in Q1 2025 showed mixed results across segments but overall improvement in profitability, with Lab Essentials revenue growing 12% while Clinical Solutions declined 32%, and gross margin expanded significantly to 30.7% from 23.8% [Revenue Analysis](index=2&type=section&id=Revenue%20Analysis) Revenue by Segment (in thousands) | Segment | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Lab Essentials | $8,117 | $7,266 | +12% | | Clinical Solutions | $1,162 | $1,718 | -32% | | Other | $516 | $306 | +69% | | **Total Revenue** | **$9,795** | **$9,290** | **+5%** | [Profitability Analysis](index=2&type=section&id=Profitability%20Analysis) Profitability Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Gross Profit | $3.0 million | $2.2 million | | Gross Margin | 30.7% | 23.8% | | Operating Expenses | $8.0 million | $10.2 million | | Net Loss | $4.6 million | $8.1 million | | Diluted EPS | ($0.09) | ($0.20) | - The increase in gross margin was primarily driven by **higher revenue** combined with **lower overhead costs**[8](index=8&type=chunk) - The decrease in operating expenses was mainly due to **lower stock-based compensation expense** and **reduced general spending**, after excluding a non-recurring charge from Q1 2024[9](index=9&type=chunk) [Non-GAAP Measures & Cash Flow](index=2&type=section&id=Non-GAAP%20Measures%20%26%20Cash%20Flow) Non-GAAP & Cash Flow Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Adjusted EBITDA | ($2.5 million) | ($3.8 million) | | Free Cash Flow | ($4.3 million) | ($6.7 million) | [2025 Financial Outlook](index=2&type=section&id=2025%20Financial%20Outlook) Teknova has reaffirmed its full-year 2025 financial guidance, projecting total revenue in the range of $39 million to $42 million and anticipating free cash outflow of less than $12 million - The company reiterates its fiscal 2025 total revenue guidance of **$39 million to $42 million**[12](index=12&type=chunk)[2](index=2&type=chunk) - The company continues to anticipate free cash outflow of **less than $12 million** for fiscal year 2025[12](index=12&type=chunk)[3](index=3&type=chunk) [Corporate Information & Events](index=2&type=section&id=Corporate%20Information%20%26%20Events) Teknova will be participating in several upcoming investor conferences in May and June 2025, including the Sidoti Micro Cap Conference, the William Blair Growth Stock Conference, and the Jefferies Global Healthcare Conference, following a conference call to discuss Q1 2025 results - Teknova will participate in three upcoming investor conferences: - Sidoti Micro Cap Conference (Virtual) on May 21, 2025 - William Blair 45th Annual Growth Stock Conference (Chicago, IL) on June 4, 2025 - Jefferies 2025 Global Healthcare Conference (New York, NY) on June 5, 2025[13](index=13&type=chunk) - The company hosted a conference call and webcast on May 8, 2025, to discuss the quarterly financial results[13](index=13&type=chunk)[14](index=14&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section provides the detailed, unaudited condensed financial statements for the period ended March 31, 2025, including the Statements of Operations, Balance Sheets, and Statements of Cash Flows, comparing the current period with the corresponding prior period or year-end [Condensed Statements of Operations](index=5&type=section&id=Condensed%20Statements%20of%20Operations) Condensed Statements of Operations (Unaudited, in thousands) | | For the Three Months Ended March 31, | | | :--- | :--- | :--- | | | **2025** | **2024** | | Revenue | $9,795 | $9,290 | | Cost of sales | 6,788 | 7,081 | | **Gross profit** | **3,007** | **2,209** | | Total operating expenses | 7,971 | 10,195 | | **Loss from operations** | **(4,964)** | **(7,986)** | | Total other income (expenses), net | 341 | (145) | | **Net loss** | **$(4,645)** | **$(8,097)** | | Net loss per share—basic and diluted | $(0.09) | $(0.20) | [Condensed Balance Sheets](index=6&type=section&id=Condensed%20Balance%20Sheets) Condensed Balance Sheets (Unaudited, in thousands) | | As of Mar 31, 2025 | As of Dec 31, 2024 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $3,377 | $3,708 | | Short-term investments | 22,896 | 26,688 | | Total current assets | 39,733 | 42,776 | | **Total assets** | **$113,993** | **$118,769** | | **LIABILITIES AND EQUITY** | | | | Total current liabilities | 7,045 | 11,211 | | Long-term debt, net | 12,989 | 9,443 | | **Total liabilities** | **35,388** | **36,375** | | **Total stockholders' equity** | **78,605** | **82,394** | | **Total liabilities and stockholders' equity** | **$113,993** | **$118,769** | [Condensed Statements of Cash Flows](index=7&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) Condensed Statements of Cash Flows (Unaudited, in thousands) | | For the Three Months Ended March 31, | | | :--- | :--- | :--- | | | **2025** | **2024** | | Cash used in operating activities | $(4,103) | $(6,558) | | Cash provided by investing activities | 3,824 | 13 | | Cash used in financing activities | (52) | (343) | | **Change in cash and cash equivalents** | **(331)** | **(6,888)** | | Cash and cash equivalents at beginning of period | 3,708 | 28,484 | | **Cash and cash equivalents at end of period** | **$3,377** | **$21,596** | [Reconciliation of Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) Teknova provides a detailed reconciliation of its non-GAAP financial measures, Adjusted EBITDA and Free Cash Flow, to the most directly comparable GAAP measures, showing a net loss of $4.6 million reconciled to an Adjusted EBITDA of negative $2.5 million for Q1 2025 Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss – as reported | $(4,645) | $(8,097) | | Adjustments (Interest, Taxes, D&A, etc.) | 1,746 | 1,747 | | **EBITDA** | **$(2,899)** | **$(6,350)** | | Other and non-recurring expenses | 367 | 2,594 | | **Adjusted EBITDA** | **$(2,532)** | **$(3,756)** | Reconciliation to Free Cash Flow (in thousands) | | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cash used in operating activities | $(4,103) | $(6,558) | | Purchases of property, plant, and equipment | (206) | (112) | | **Free Cash Flow** | **$(4,309)** | **$(6,670)** |

Core Insights - Alpha Teknova, Inc. reported total revenue of $9.8 million for the first quarter of 2025, reflecting a 5% increase from $9.3 million in the same period of 2024 [1][5] - The company introduced the proprietary PluriFreeze™ cryopreservation system in collaboration with Pluristyx, Inc., enhancing its cell therapy product portfolio [1][8] - Teknova reaffirmed its revenue guidance for 2025, expecting total revenue between $39 million and $42 million [1][11] Financial Performance - Lab Essentials revenue reached $8.1 million, a 12% increase from $7.3 million in Q1 2024, while Clinical Solutions revenue decreased by 32% to $1.2 million from $1.7 million [4][5] - Gross profit for Q1 2025 was $3.0 million, with a gross margin of 30.7%, up from 23.8% in Q1 2024, driven by higher revenue and lower overhead costs [6] - Operating expenses decreased to $8.0 million from $10.2 million in Q1 2024, primarily due to lower stock-based compensation and reduced spending [7] Cash Flow and Losses - The net loss for Q1 2025 was $4.6 million, or negative $0.09 per diluted share, compared to a net loss of $8.1 million, or negative $0.20 per diluted share, in Q1 2024 [9][21] - Adjusted EBITDA improved to negative $2.5 million from negative $3.8 million year-over-year, while free cash flow was negative $4.3 million, an improvement from negative $6.7 million in Q1 2024 [10][27] Strategic Developments - The collaboration with Pluristyx, Inc. positions Teknova as the exclusive manufacturer and distributor of the PluriFreeze™ product line in the U.S. and Canada, expanding its market reach [1][8] - The company maintains a strong cash position with total cash and short-term investments of $26.3 million and total borrowings of $13.2 million at the end of Q1 2025 [8]

Core Viewpoint - Alpha Teknova, Inc. is set to report its financial results for Q1 2025 on May 8, 2025, after market close, indicating a focus on transparency and communication with investors [1]. Group 1: Financial Reporting - The company will announce its financial results for the first quarter ended March 31, 2025, on May 8, 2025 [1]. - A webcast and conference call will be held on the same day at 5 p.m. Eastern Time for investors to access the results [2]. Group 2: Company Overview - Teknova has been innovating in the manufacture of critical reagents since 1996, supporting the life sciences industry [3]. - The company offers customizable solutions for various stages of the workflow, aiding in molecular diagnostics, synthetic biology, and emerging therapeutic modalities [3]. - Teknova operates from a 180,000 square feet facility in Hollister, California, designed for efficient production of foundational ingredients for next-generation therapies [3].

Core Insights - Alpha Teknova, Inc. has partnered with Pluristyx, Inc. to exclusively distribute the PluriFreeze™ cryopreservation system, enhancing the development of cell therapies [1][2] - The PluriFreeze system is designed to streamline the commercialization of allogeneic cell therapies, featuring a synthetic and animal-origin-free formulation [2][3] Company Overview - Teknova specializes in producing critical reagents for the life sciences sector, focusing on novel therapies, vaccines, and molecular diagnostics since 1996 [5] - Pluristyx is a biotechnology company that provides a range of products and services for cell and gene therapy development, including induced Pluripotent Stem Cells (iPSCs) [6] Product Details - The PluriFreeze system includes PluriFreeze Base, a cellular wash that mimics intracellular space, and PluriFreeze PF10, a low viscosity freezing medium with 10% DMSO [2][3] - Research-grade pricing for PluriFreeze Base starts at $240 per 100 mL, while PluriFreeze PF10 starts at $260 per 100 mL [3] Collaboration Benefits - The collaboration allows for better control and optimization of biopreservation conditions, facilitating the scaling of cell therapy development [3] - Customers can access both RUO and GMP-grade versions of the PluriFreeze products, with options for custom formulations [3]

Core Insights - Teknova and Pluristyx have launched the PluriFreeze cryopreservation system, which is exclusively available through Teknova, aimed at enhancing the manufacturing process of allogeneic cell therapies [1][2] Company Overview - Teknova is a leading producer of critical reagents for the life sciences industry, focusing on the discovery, development, and commercialization of novel therapies, vaccines, and molecular diagnostics [1][5] - Pluristyx specializes in induced Pluripotent Stem Cells (iPSCs) and innovative technologies that aim to shorten the development lifecycle of cell therapies [1][6] Product Details - The PluriFreeze system is entirely synthetic and animal-origin-free, consisting of PluriFreeze Base, a cellular wash that mimics intracellular space, and PluriFreeze PF10, a low viscosity freezing medium with 10% dimethyl sulfoxide (DMSO) [2] - The system is designed to streamline the development and commercialization of next-generation allogeneic cell therapies, providing metabolic support and simplifying scale-up processes [2][3] Pricing and Availability - Research-grade PluriFreeze Base is priced at $240 per 100 mL, while PluriFreeze PF10 is priced at $260 per 100 mL [3] - Custom formulations and GMP-grade versions are available upon request, with free product samples offered until March 21, 2025 [3] Strategic Collaboration - The collaboration between Teknova and Pluristyx allows for better control and optimization of biopreservation conditions, enhancing the viability and functionality of cells throughout the product lifecycle [3]

Core Insights - Teknova and Pluristyx have announced a collaboration to produce and commercialize the PluriFreeze™ cryopreservation system, aimed at enhancing the development of allogeneic cell therapies [1][2] - Teknova will serve as the exclusive manufacturer and distributor of the PluriFreeze product line in the United States and Canada, facilitating wider access for customers [2][3] Company Overview - Teknova specializes in manufacturing critical reagents for the life sciences industry, supporting the discovery and development of novel therapies, vaccines, and diagnostics [5] - Pluristyx focuses on providing induced Pluripotent Stem Cells (iPSCs) and innovative technologies to accelerate the development lifecycle of cell therapies [6][7] Product Details - The PluriFreeze system includes a protective wash and a low viscosity freezing medium, designed to streamline the manufacturing process of cell products [3][4] - PluriFreeze Base mimics intracellular space and provides metabolic support, while PluriFreeze PF10 contains 10% dimethyl sulfoxide (DMSO) to simplify scale-up and automation [3] Future Developments - Additional information regarding pricing and availability of the PluriFreeze products will be disclosed at the BioProcess International West conference in San Diego, starting March 19, 2025 [4]

Tax Attributes and Financial Liabilities - As of December 31, 2024, the company had $75.3 million of U.S. federal and $69.2 million of state net operating loss carryforwards (NOLs) available to reduce future taxable income[160]. - The deductibility of federal NOLs incurred after December 31, 2021, is limited to 80% of taxable income, affecting future tax planning[160]. - The company’s ability to utilize NOLs may be limited based on its operating performance and tax laws in effect at the time of proposed use[160]. - The company may experience ownership changes that could limit its ability to use pre-change NOLs and other tax attributes, potentially resulting in increased future tax liability[161]. - The company is subject to various tax liabilities, and changes in tax laws could adversely affect its financial condition and results of operations[230]. Intellectual Property and Competitive Position - The company relies on trade secret protection and confidentiality agreements to safeguard its intellectual property, which is critical for its competitive position[165]. - The company does not currently own any issued patents covering its proprietary products or manufacturing processes, which may hinder its ability to protect its innovations[166]. - The company may need to obtain licenses from third parties to advance its research or commercialize products, with no assurance of obtaining such licenses on favorable terms[185]. - The company may face challenges in protecting its trademarks and trade names, which could adversely affect its ability to compete effectively[182]. - Intellectual property litigation could result in significant expenses and distract personnel from their normal responsibilities, potentially impacting the company's financial condition[178]. - The company may face claims from third parties asserting misappropriation of intellectual property, which could lead to costly litigation[180]. - The company’s commercial success depends on obtaining and maintaining trade secret protection for its current and future products[165]. Financial Covenants and Debt Obligations - The company was out of compliance with the revenue covenant under its Amended and Restated Credit Agreement for the periods ending November 30, 2023, and January 31, 2024[196]. - On March 8, 2024, the company entered into Amendment No. 5 to the Amended and Restated Credit Agreement, which included a waiver from the lender for the covenant violations[196]. - The Second Amended and Restated Credit Agreement contains covenants that impose significant operating and financial restrictions on the company[194]. - The company may incur additional indebtedness in the future, which could exacerbate risks associated with its current substantial indebtedness[193]. - The company may be required to divert funds to service its debt, impairing its liquidity position and operational flexibility[190]. - The company expects to use cash on hand to meet current and future financial obligations, including funding operations and debt service requirements[192]. Corporate Governance and Stockholder Rights - THP controls approximately 70.6% of the voting power of the company's outstanding common stock, allowing it to influence corporate decisions significantly[197]. - The company has provisions in its corporate governance documents that could make it more difficult for third parties to acquire it, potentially affecting stockholder interests[212]. - The company has opted out of Section 203 of the Delaware General Corporation Law, which generally restricts business combinations with interested stockholders for three years[214]. - The company’s amended and restated certificate of incorporation designates the Court of Chancery of the State of Delaware as the exclusive forum for certain litigation, which may limit stockholders' options[216]. - The company’s governance provisions may discourage lawsuits against its directors and officers, potentially impacting accountability[218]. Financial Reporting and Compliance - The existence of material weaknesses in internal controls could lead to errors in financial statements, adversely affecting investor confidence and stock price[203]. - The company is required to disclose any material weaknesses in internal control over financial reporting, which could lead to restatements of financial statements[203]. - The company is classified as an "emerging growth company" and a "smaller reporting company," which allows it to take advantage of reduced disclosure requirements, potentially making its common stock less attractive to investors[204]. - The company has elected to utilize the extended transition period for complying with new or revised accounting standards, which may complicate financial comparisons with other public companies[206]. - The company will remain an "emerging growth company" until it exceeds $1.235 billion in annual revenue or meets other specified criteria[207]. - The company is subject to the reporting requirements of the Securities Exchange Act of 1934 and the Sarbanes-Oxley Act, which may strain resources and distract management from growth strategies[210]. Market Conditions and Stock Performance - The company’s operating results and stock price may be volatile, influenced by various factors beyond its control[237]. - If securities or industry analysts do not publish favorable reports or cease coverage, the company's stock price and trading volume could decline[239]. - Analysts' projections may vary significantly from actual business results due to various uncontrollable factors[240]. - If operating results fail to meet expectations, the company's stock price could decline[241]. - The market price of the company's stock could decline if holders of currently restricted shares sell them or are perceived as intending to sell[222]. - The company may face challenges in raising additional funds through future offerings due to market conditions and the perception of its stock[220]. - The company may issue shares of preferred stock in the future, which could adversely affect holders of common stock and depress its market price[225]. - The company does not anticipate paying regular cash dividends on its common stock, as it is prohibited under the Second Amended and Restated Credit Agreement[224]. Shareholder Structure and Equity Plans - As of December 31, 2024, the company has 53,409,727 shares of common stock outstanding, with a significant portion held by directors and affiliates, subject to Rule 144 limitations[221]. - The company has 312,174, 1,527,105, and 2,280,667 shares reserved for issuance under the 2016 Stock Plan, 2020 Equity Incentive Plan, and 2021 Equity Incentive Plan, respectively[223].

FINANCIAL RESULTS: Q4:2024 and Full Year 2024 SLIDE SUPPLEMENT • Welcome • Business Highlights and Updates Stephen Gunstream, President and Chief Executive Officer • Financial Results and 2025 Outlook Matt Lowell, Chief Financial Officer • Q&A Nasdaq: TKNO March 4, 2025 Today's Agenda © 2025 Alpha Teknova, Inc. ● Financial Results | Q4:2024 and Full Year 2024 ● Slide Supplement March 4, 2025 2 Forward-looking statements and use of non-GAAP financial measures Statements in this presentation about future expe ...

Financial Data and Key Metrics Changes - Total revenue for the full year of 2024 was $37.7 million, a 3% increase from $36.7 million in 2023, with adjusted growth of 11% when excluding a large clinical solutions order from 2023 [9][25] - Free cash outflow improved from $26.7 million in 2023 to $13.5 million in 2024, significantly better than initial guidance of $18 million [11][24] - Net loss for the full year of 2024 was $26.7 million or $0.57 per diluted share, compared to a net loss of $36.8 million or $1.16 per diluted share in 2023 [34] Business Line Data and Key Metrics Changes - Revenue from catalog reagents, which represented approximately 60% of total revenue, grew low single digits in 2024, with a 7% growth in the second half compared to the same period in 2023 [13] - Custom biopharma revenue grew about 40% in 2024, with a robust growth of approximately 25% when excluding a new therapeutic customer [16] - Clinical Solutions revenue was $7.1 million for the full year of 2024, a 5% increase from $6.7 million in 2023, with a 76% increase when excluding a large order from 2023 [27] Market Data and Key Metrics Changes - The company supported 48 clinical customers in 2024, up from 34 in 2023, with 39 of these being biopharma-related [8][17] - Sales to biopharma customers represented approximately 25% of total revenue in 2024, with 27% of total revenue coming from cell and gene therapy-related companies [15][66] - The company expects mid-single-digit growth in catalog business for 2025, reflecting stabilization in the market [20] Company Strategy and Development Direction - The company aims to expand its product portfolio through collaborations and acquisitions over the next 12 to 24 months, focusing on enhancing operational and commercial scale [22][43] - The strategy includes maintaining a focus on biopharma and custom products while managing operating expenses effectively [40] - The company is optimistic about achieving at least 15% growth in custom products sold to biopharma accounts despite current macroeconomic uncertainties [21] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious environment among customers, particularly smaller biotech firms, leading to delayed orders and reduced budgets [51] - The company anticipates 2025 to be a recovery year, with expectations of returning to historically typical growth rates by 2026 [20][39] - Management expressed confidence in the long-term outlook for the end market and the company's ability to execute its strategy [45] Other Important Information - The company reported a significant reduction in operating expenses, down to $33.4 million in 2024 from $45.9 million in 2023, driven by reduced headcount and spending [33] - Capital expenditures for 2024 were $1.1 million, a decrease from $7.9 million in 2023, indicating a focus on cost management [35] - The company has amended its credit facility, extending the maturity date to March 2030 and increasing liquidity by $4 million [42][43] Q&A Session Summary Question: Observations on customer behavior and budget changes - Management noted a recent softening in customer orders, particularly among smaller biotech firms, with some customers delaying orders from Q1 to Q2 [51][52] Question: Composition of new customer pipeline - Most new customers are in preclinical or phase one stages, with successful conversions from phase two customers possible [56] Question: Any large one-time orders expected in 2025 - Management indicated no significant one-time orders are anticipated for 2024, but acknowledged potential revenue lumpiness due to customer order variability [58][61] Question: Updated number of cell and gene therapy customers - The company now supports over 100 total cell and gene therapy customers, with 27% of total revenue derived from this segment [66] Question: Revenue phasing for 2025 - The first quarter of 2025 is expected to be the lowest, with a gradual increase in revenue through Q2 and Q3, followed by a potential decrease in Q4 due to fewer business days [70][71] Question: Revenue ramp for new clinical customers - It typically takes about a year to a year and a half for new clinical customers to reach spending levels comparable to more mature customers [79] Question: Pricing changes for reagents - The company implemented mid-single-digit price increases for its products at the beginning of the year [82]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $9.3 million, an 18% increase from $7.9 million in Q4 2023, and $37.7 million for the full year 2024, a 3% increase from $36.7 million in 2023 [25][34] - Adjusted to exclude revenue from a single large clinical solutions order of $2.7 million in 2023, total revenue growth was 11% in 2024 [9][25] - Free cash outflow improved from $26.7 million in 2023 to $13.5 million in 2024 [24][36] Business Line Data and Key Metrics Changes - Revenue from catalog reagents represented approximately 60% of total revenue, growing low single digits in 2024, with 7% growth in the second half of the year compared to the second half of 2023 [13] - Custom biopharma business grew about 40% in 2024, with a robust growth of approximately 25% excluding a new therapeutic customer [16] - Clinical Solutions revenue was $1.9 million in Q4 2024, a 110% increase from $0.9 million in Q4 2023, and $7.1 million for the full year 2024, a 5% increase from $6.7 million in 2023 [27] Market Data and Key Metrics Changes - Sales to biopharma customers represented approximately 70% of custom revenue and 25% of total revenue in 2024 [15] - The company supported 48 clinical customers in 2024, up from 34 in 2023, with 39 being biopharma-related [8][17] - The company expects mid-single-digit growth in catalog business for 2025, reflecting market stabilization [20] Company Strategy and Development Direction - The company aims to expand its product portfolio through collaborations and acquisitions over the next 12 to 24 months [22] - The focus remains on executing the growth strategy laid out in 2021 to achieve long-term sustainable growth [8] - The company plans to moderately increase investments in sales and marketing to position itself for market recovery [40] Management's Comments on Operating Environment and Future Outlook - Management noted cautiousness among customers due to macroeconomic uncertainty, particularly regarding capital flow into the sector [39] - The company expects 2025 to be a recovery year, with guidance for total revenue of $39 million to $42 million, implying 7% growth compared to 2024 [38] - Management expressed confidence in achieving at least 15% growth in custom products sold to biopharma accounts despite current uncertainties [21] Other Important Information - The company reported a net loss of $5.7 million for Q4 2024, an improvement from a net loss of $10.7 million in Q4 2023 [34] - Adjusted EBITDA for the full year of 2024 was negative $14.5 million, an improvement from negative $19.8 million in 2023 [34] - The company has amended and extended its credit facility, increasing liquidity by $4 million [43] Q&A Session Summary Question: Comments on customer budget softening - Management noted recent softening in customer budgets, particularly among smaller biotech firms, while larger pharma customers remain positive [51][52] Question: Composition of new customer pipeline - Most new customers are in preclinical or phase one stages, with successful transitions from phase two customers [56] Question: Any large one-time orders expected in 2025 - Management indicated no significant one-time orders are anticipated for 2024, but acknowledged potential revenue lumpiness [58][61] Question: Updated number of cell and gene therapy customers - The company now supports over 100 total cell and gene therapy customers, with 27% of total revenue coming from this segment [66] Question: Revenue phasing for 2025 - Management expects Q1 2025 to be the lowest quarter, with a gradual increase through Q2 and Q3, followed by a potential decrease in Q4 [70] Question: Revenue ramp for new clinical customers - It typically takes about a year to a year and a half for new clinical customers to reach spending levels comparable to more mature customers [79] Question: Pricing changes for reagents - The company implemented mid-single-digit price increases for its products at the beginning of the year [82]