Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $451,000, with full-year revenue at $2.4 million, reflecting a gross profit of $1.2 million and a gross margin of 47% for the year [20][21] - Q4 gross margin was 27%, impacted by a higher proportion of consumable revenue compared to hardware sales [20] - Total operating expenses for Q4 2025 were $21.2 million, down from $31.3 million in Q4 2024, with adjusted operating expenses at $18.3 million compared to $26.7 million in the prior year [21][22] Business Line Data and Key Metrics Changes - The company reported a focus on consumable revenue, with expectations of a more than 25% increase in the number of consumable kits run by customers in 2026 [29] - The placement program for instruments has successfully secured 17 new customers, enhancing access to key opinion leaders in the market [6][7] Market Data and Key Metrics Changes - The company anticipates modest capital sales in 2026 due to a focus on preparing the market for the Proteus launch, which is expected at the end of 2026 [5][11] - The NIH funding environment has shown some improvement, which may positively impact customer capital expenditures [49] Company Strategy and Development Direction - The company aims to accelerate commercial adoption, deliver on its innovation roadmap, and preserve financial strength as it prepares for the Proteus launch [4][18] - The Proteus system is expected to surpass the first-generation technology across key performance metrics, with a list price set at $425,000 to balance premium value and accessibility [11][78] Management's Comments on Operating Environment and Future Outlook - Management views 2026 as a transition year, prioritizing long-term platform adoption over short-term revenue maximization [24][26] - The company is committed to maintaining fiscal discipline while ensuring core strategic initiatives are funded appropriately [19][26] Other Important Information - The company has a strong balance sheet with $215.8 million in cash and investments, allowing it to support operations into the second quarter of 2028 [23][25] - Insider ownership remains significant, with no management team members selling shares outside of plan-mandated selling for tax withholdings [27] Q&A Session Summary Question: What are the trends in consumables within the installed base? - Management noted consistent purchasing rates from customers, with expectations of a more than 25% increase in consumable kits run by customers in 2026 [29] Question: Should we expect very few placements in 2026 with most revenue from consumables? - Management confirmed that revenue will primarily come from consumables and services, with limited capital equipment sales anticipated [31][32] Question: How should we think about the launch curve for Proteus? - Management indicated that existing Platinum users will likely transition to Proteus, while new customers may adopt it based on its capabilities [34][35] Question: Does the $98 million in guidance for operating expenses include stock compensation? - Management clarified that the adjusted operating expense number excludes stock-based compensation, focusing on cash-oriented expenses [41] Question: Is there confidence in the price point for Proteus based on customer feedback? - Management stated that the price point was released to assist customers in capital planning, with no secured orders yet but positive feedback from discussions [45][47] Question: What applications are expected to provide a tailwind for Proteus? - Management highlighted the potential for Proteus in complex biological samples and post-translational modifications, which are key areas of focus [64][66] Question: Will there be an increase in the field sales force for Proteus? - Management confirmed that the total spend for 2026 includes augmenting the commercial team to be launch-ready for Proteus [67][68]