QuantumSi(US:QSI)2025-11-05 22:07Financial Performance - Total revenue for Q3 2025 was $552,000, a decrease of 29.9% compared to $787,000 in Q3 2024[130] - Product revenue decreased by 33.9% to $505,000 in Q3 2025 from $764,000 in Q3 2024, while service revenue increased by 104.3% to $47,000[130] - Gross profit for Q3 2025 was $194,000, down 47.1% from $367,000 in Q3 2024[130] - The net loss for Q3 2025 was $35,703,000, representing a 41.0% increase from a net loss of $25,313,000 in Q3 2024[130] - Total revenue for the three months ended September 30, 2025, decreased by $0.2 million, or 29.9%, compared to the same period in 2024, while for the nine months, it increased by $0.1 million, or 6.4%[133] - Gross profit for the three months ended September 30, 2025, decreased by $0.2 million, or 47.1%, while it increased slightly for the nine months ended September 30, 2025, compared to the same periods in 2024[135] - Gross profit margin was 35.1% for the three months and 51.9% for the nine months ended September 30, 2025, compared to 46.6% and 53.1% for the same periods in 2024, respectively[136] Operating Expenses - Operating expenses increased by 40.5% to $39,967,000 in Q3 2025 compared to $28,455,000 in Q3 2024[130] - Research and development expenses for the three months ended September 30, 2025, decreased by $2.3 million, or 14.1%, while for the nine months, they increased by $0.2 million, or 0.4%[140][141] - Selling, general and administrative expenses decreased by $1.6 million, or 12.8%, for the three months ended September 30, 2025, and by $1.8 million, or 4.8%, for the nine months compared to the same periods in 2024[143][144] - Lease termination expense increased by $13.6 million for both the three and nine months ended September 30, 2025, due to a settlement agreement to terminate a lease[145] - Legal settlement expense increased by $1.8 million and $5.2 million for the three and nine months ended September 30, 2025, respectively, due to settlements related to litigation[146] Cash Flow and Liquidity - Net cash used in operating activities for the nine months ended September 30, 2025, was $78.4 million, primarily due to a net loss of $83.7 million[155] - Net cash used in investing activities for the nine months ended September 30, 2025, was $35.3 million, an increase from $26.8 million in the same period in 2024[157] - Net cash provided by financing activities for the nine months ended September 30, 2025, was $95.4 million, compared to $0.1 million for the same period in 2024[158] - As of September 30, 2025, the company had cash and cash equivalents and investments in marketable securities totaling $230.5 million[161] - The company expects to incur negative operating cash flows on an annual basis for the foreseeable future until it can scale its revenue growth[159] - The company anticipates that existing cash and cash equivalents will be sufficient to meet liquidity and capital expenditure requirements for at least the next 12 months[160] Workforce and Restructuring - The company terminated approximately 23% of its workforce as part of a restructuring program, incurring one-time cash charges of approximately $2.3 million[122] Product Development and Launches - The company launched the Platinum Pro benchtop sequencer in January 2025, with first shipments occurring in March 2025[118] - A new platform, Proteus, is expected to launch in the second half of 2026, aiming for single molecule, amino acid level resolution[120] - The company began a controlled launch of the Platinum instrument in December 2022, with a full commercial launch starting in Q2 2024[138] - The company expects gross profit margin to be variable for the foreseeable future as it continues its commercialization efforts[137] Warrant Liabilities - The change in fair value of warrant liabilities increased significantly by 1152.9% to $1,516,000 in Q3 2025 compared to $121,000 in Q3 2024[130] - For the three months ended September 30, 2025, the company recognized $1.5 million of income from the decrease in the fair value of warrant liabilities, an increase of $1.4 million or 1152.9% compared to the same period in 2024[150] - For the nine months ended September 30, 2025, the company recognized $3.9 million of income from the decrease in the fair value of warrant liabilities, an increase of $3.0 million or 327.8% compared to the same period in 2024[151] Foreign Currency Risk - The company anticipates limited activity outside the U.S. Dollar in the near term[176] - Foreign currency translation risk is not expected to have a material impact on the unaudited Condensed Consolidated Financial Statements[176] - The growth of operations and transactions outside the U.S. may increase foreign currency translation risks in the future[176] - The company has not entered into any hedging arrangements regarding foreign currency risk to date[176] - As international operations grow, the company will reassess its approach to managing currency rate fluctuations[176]