Financial Data and Key Metrics Changes - The company reported record revenue of $15.5 million for Q1 2025, representing an approximately 8% increase compared to Q1 2024 [21] - The average selling price (ASP) for the advised CTD tests increased to $419 per test, driven by the addition of new biomarkers [21] - Gross margin for Q1 2025 was 58.9%, slightly down from 59.6% in 2024, with expectations for improvement throughout the year [23] - The net loss for Q1 2025 was $3.8 million, compared to $3.4 million in the same period last year [26] Business Line Data and Key Metrics Changes - The company achieved a 6% increase in testing volume over Q4 2024, attributed to the successful launch of new biomarkers [9] - The ASP is expected to receive an incremental boost of approximately $90 by the end of 2025 from the new markers [8] Market Data and Key Metrics Changes - The company has secured positive medical policy with TRICARE, which will enhance reimbursement for its tests [7] - The company is focusing on expanding its presence in the rheumatology market, currently servicing about one-third of the community [36] Company Strategy and Development Direction - The company aims to achieve positive adjusted EBITDA by the end of 2025, with a focus on expanding ASP and volume [9][30] - Future innovations include the launch of seronegative markers expected by the end of 2025, which are anticipated to improve sensitivity for identifying rheumatoid arthritis patients [14][15] - The company is exploring strategic transactions related to autoimmune disease diagnostics, with a focus on biomarker development [67] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about meeting profitability goals, citing the successful launch of new biomarkers and improved reimbursement efforts [20][30] - The company is encouraged by the momentum gained from recent ALJ hearing wins and positive medical policy changes [7][88] Other Important Information - The company has refinanced its debt with a new credit facility from Perceptive Advisors, extending maturity and providing additional borrowing capacity [13][29] - The company ended Q1 2025 with cash and cash equivalents of over $11 million and an accounts receivable balance of just under $15 million [27] Q&A Session Summary Question: Expectations for volume growth throughout the year - Management indicated that they expect volume to grow throughout 2025, with a focus on increasing tests per physician and expanding their reach in the rheumatology market [36][38] Question: Details on the impact of new markers on volume growth - Management noted that the stability of the sales team and the excitement around new markers are key drivers for volume growth, with expectations for continued improvement [44] Question: Update on the launch of the second wave of RA markers - The company expects to launch the second wave of RA markers by the end of 2025 or early 2026, pending regulatory approvals [55] Question: Insights on market awareness of new tests - Management acknowledged that while awareness is reasonable among existing users, further education efforts will be necessary to fully inform the broader physician community [60][61] Question: Strategic transactions and their potential focus - Management indicated that potential strategic transactions would likely relate to existing business in the autoimmune space, particularly in biomarker development [67] Question: Update on ALJ hearings and their impact - Management shared that they have several ALJ hearings scheduled and are learning from past experiences to improve their appeal processes [81][83] Question: Learnings from TRICARE's positive medical policy - Management highlighted that the positive determination from TRICARE validates their evidence and can be leveraged in discussions with other payers [88][90]