Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $6.5 million, a decrease of 26% compared to Q1 2024, which included $1.4 million from discontinued clinical services [7][11] - GAAP gross margin for Q1 2025 was 46%, significantly higher than 32% in Q1 2024, while non-GAAP gross margin also stood at 46% compared to 34% in the prior year [9][17] - GAAP operating expenses decreased to $11.4 million in Q1 2025 from $33.9 million in Q1 2024, driven by cost-saving initiatives [9][16] Business Line Data and Key Metrics Changes - The installed base of OGM systems grew to 379, reflecting a 9% year-over-year increase with nine new installations in Q1 2025 [10] - Flow cell sales totaled 6,994 in Q1 2025, a 15% decrease year-over-year, but a 1% increase when excluding sales to new customers [8][12] Market Data and Key Metrics Changes - Cash, cash equivalents, and available-for-sale securities as of March 31, 2025, were $29.2 million, with $11 million subject to restrictions [10] - The company completed a $10 million registered direct offering in January 2025 and raised net proceeds of $3.2 million through ATM sales in Q1 2025 [10] Company Strategy and Development Direction - The company has shifted its strategy to focus on existing customers who use OGM products routinely, scaling back on customer acquisition costs [6] - The strategy includes four pillars: support for the installed base, drive utilization through software adoption, build support for reimbursement, and improve profitability with lower costs [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the installed base's potential for growth and profitability, despite current challenges in equity capital markets and global trade [6][16] - The company expects full-year revenues to range from $26 million to $30 million, reflecting the current market turbulence [17] Other Important Information - The first quarter of 2025 saw 95 publications related to OGM, indicating strong engagement in the research community [14] - Significant studies published by leading institutions highlight the clinical utility of optical genome mapping, which may drive further adoption [15] Q&A Session Summary Question: Is MD Anderson a big customer currently? - MD Anderson is an existing user and has developed a validated workflow for OGM, indicating strong adoption and potential for broader use [21][22] Question: Is the mid-40% gross margin sustainable for the remainder of the year? - Management believes the gross margin will remain stable in the mid-40% range for the year, with potential for gradual improvement [23] Question: Can you provide more details on the global trade situation and supply chain? - The company has limited exposure to supply chain issues currently, but is monitoring the situation closely due to half of its revenues coming from outside the U.S. [24][26] Question: How is the category one CPT code impacting customer adoption? - The establishment of the CPT code is seen as a significant tailwind for reducing barriers to adoption among prospective customers [30][31] Question: What steps are being taken to increase SAPIRI utilization among existing routine users? - The company is focusing on software proficiency, menu expansion, and overall workflow proficiency to drive increased utilization [41][44]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $6.5 million, a decrease of 26% compared to Q1 2024, which included $1.4 million from discontinued clinical services [7][11] - GAAP gross margin for Q1 2025 was 46%, significantly higher than 32% in Q1 2024 [9][17] - GAAP operating expenses decreased to $11.4 million in Q1 2025 from $33.9 million in Q1 2024, primarily due to cost-saving initiatives [9][16] Business Line Data and Key Metrics Changes - The installed base of OGM systems grew to 379, a 9% year-over-year increase, with nine new installations in Q1 2025 [10] - Flow cell sales totaled 6,994 in Q1 2025, reflecting a 15% decrease year-over-year, but a 1% increase when excluding new customer sales [8][11] Market Data and Key Metrics Changes - Cash, cash equivalents, and available-for-sale securities as of March 31, 2025, were $29.2 million, with $11 million subject to restrictions [10] - The company completed a $10 million registered direct offering in January 2025 and raised net proceeds of $3.2 million through ATM sales in Q1 2025 [10] Company Strategy and Development Direction - The company has shifted its strategy to focus on existing customers who use OGM products routinely, scaling back on new instrument placements [6][7] - The strategy includes four pillars: supporting the installed base, driving utilization through software adoption, facilitating reimbursement support, and improving profitability with lower costs [7] Management's Comments on Operating Environment and Future Outlook - Management expects full-year revenues to be in the range of $26 million to $30 million, reflecting current market turbulence [17] - Q2 revenues are anticipated to be between $6.3 million and $6.8 million, with expectations to install 15 to 20 new OGM systems throughout 2025 [18] Other Important Information - The first quarter of 2025 saw 95 publications related to OGM, indicating strong engagement in research and development [13] - The company is focused on reducing cash burn and increasing gross margin, with operating expenses down 66% year-over-year [16][17] Q&A Session Summary Question: Is MD Anderson a big customer currently? - MD Anderson is an existing user and has developed a validated workflow for OGM, indicating significant adoption and impact on their operations [21][22] Question: Is the mid-40% gross margin sustainable for the remainder of the year? - Management believes the gross margin will remain stable in the mid-40% range for the rest of the year, with potential for gradual improvement [23] Question: What steps are being taken to increase SAPIRI utilization among existing routine users? - The company is focusing on training customers in using the VIA software, supporting menu expansion, and improving overall workflow proficiency [40][42]