Question-and-Answer SessionWell, maybe to set the stage, it's been a challenging year for life science tools and diagnostic instrument vendors like PacBio facing headwinds that are essentially outside your control. Could you elaborate on the key focus areas for you this year to help set up the business for hopefully a better environment next year?Christian HenryPresident, CEO & Director Yes. I think that you said it, things outside of your control. And so as a CEO, what you're trying to do is you're trying ...

Financial Data and Key Metrics Changes - The company reported a record quarterly revenue increase of 70%, reaching $501,000 for Q4 2024, and a 56% increase in annual revenue to $1.9 million [27][8] - Gross profit margins improved to 61% in Q4 2024, up from 44% in the same quarter last year, with gross profit dollars increasing by 136% [31][8] - The adjusted EBITDA loss was the smallest in company history, with cash burn expected to decrease from $1.5 million to $1 million per quarter [9][34] Business Line Data and Key Metrics Changes - Evolve Rat accounted for 52% of Q4 sales, with a 365% increase compared to the same quarter last year, while Evolve Mouse represented 24% of sales [27][28] - ContraPest sales decreased by 51% as customers transitioned to Evolve solutions [28] Market Data and Key Metrics Changes - E-commerce sales surged by 206% in Q4 2024, representing 55% of total revenue for the quarter [28][29] - The company expanded its distribution agreements in 10 countries, with significant orders from cities like New York and Baltimore [19][15] Company Strategy and Development Direction - The company aims to achieve cash flow breakeven at an annual revenue threshold of $7 million, down from $12 million historically [9] - Strategic financing completed is expected to accelerate progress towards profitability [10][24] - Focus on expanding into municipal markets, warehousing, and international distribution as key growth drivers [22][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's trajectory, highlighting the successful launch of Evolve products and the potential for growth in various markets [11][37] - The company is committed to a focused strategy that emphasizes cost efficiencies and sustainable long-term success [36] Other Important Information - The company is implementing new initiatives to reduce cash burn by $2 million annually and has secured a larger facility to meet increasing demand [9][32] - The introduction of the Lure bait dispenser is expected to enhance product accessibility, although it is not projected to be a high revenue item [53][54] Q&A Session Summary Question: Visibility on New York pilot program - Management indicated that the pilot program in New York will start in April, with potential for expansion based on initial success [42][44] Question: Sales efforts in warehousing and distribution - The company is seeing increased orders from warehousing facilities, particularly in food production, where traditional poisons are not feasible [46][47] Question: E-commerce sales strategy - Management confirmed that advertising and search engine optimization efforts are in place to drive e-commerce sales, with significant growth noted on platforms like Amazon [48][49] Question: Clarification on cash burn reduction - The reduction from $1.5 million to $1 million was clarified as a decrease in cash burn or adjusted EBITDA [50][52] Question: Contribution of Lure bait dispenser - The Lure bait dispenser is seen as a valuable accessory that allows for product use in hard-to-reach areas, generating interest and orders [53][54] Question: Revenue growth from recent contracts - Management noted that regulatory approvals and field trials are necessary before significant revenue contributions can be expected from new contracts [62][64] Question: Traction with big box retailers - The company has seen significant interest from retailers like Ace Hardware, with plans to expand into their warehouses [68][69] Question: Marketing plans for increasing awareness - A comprehensive marketing plan is in place to promote the product's success in municipalities and through social media [71][73] Question: Manufacturing capacity and cost savings - The company has built its supply chain to handle increased demand without constraints, with ongoing efforts to improve manufacturing efficiencies [77][79]