Financial Data and Key Metrics Changes - The company reported Q1 revenue of $14 million, rebounding from $12.4 million in Q4 of fiscal 2025, indicating a recovery from previous softness [3][7] - Year-over-year revenue comparison appears flat, but the current quarter is viewed as a return to stability and the start of renewed momentum [8] - GAAP loss from operations was $0.5 million compared to income of $1.3 million in the same quarter last year, with adjusted EBITDA slightly positive at $60,000 [8][9] Business Line Data and Key Metrics Changes - Research services contributed $13.7 million to the total revenue, while the data business provided the remaining amount [7] - Gross margin decreased to 43% from 50% year-over-year, primarily due to increased outsourced lab service costs [8][9] - Operating expenses rose to $6 million, with intentional increases in R&D and sales and marketing to support the data business [9] Market Data and Key Metrics Changes - Customer cancellations have decreased, and bookings to revenue conversion has improved, indicating stronger customer relationships [4] - The macro environment remains challenging, but there are signs of improvement in biotech funding and R&D budgets [3][4] Company Strategy and Development Direction - The company aims to drive value opportunities in Corellia and its data business while expanding its core TOS platform [3][4] - The focus is on integrating radiopharmaceutical services to enhance customer offerings and improve gross margins [4][5] - The company is optimistic about the long-term potential of AI and machine learning in drug discovery [5] Management's Comments on Operating Environment and Future Outlook - Management expresses cautious optimism regarding the investment landscape, noting improvements in budget constraints [20][21] - The company anticipates sequential revenue growth and margin expansion as operations improve [11] - There is confidence in the ability to execute and deliver shareholder value, supported by a strong balance sheet and no debt [11] Other Important Information - The company ended Q1 with $10.3 million in cash, up $0.5 million from year-end, and expects to remain cash neutral in Q2 [10][11] - Management emphasizes the importance of investments in R&D and sales and marketing for future growth [9] Q&A Session Summary Question: Changes in data licensing business strategy - Management confirmed no changes in strategy for the data licensing business, with early wins and customer engagement being encouraging [14] Question: Size of the opportunity in the data business - Management stated it is too early to predict the exact size and success of the data opportunity, but there is potential and interest [15] Question: Deal structuring for Corellia - Management is looking for external partners and funding to support Corellia's advancement, with compelling data emerging from the platform [16] Question: Broader investment landscape - Management described the environment as tough but cautiously optimistic about improvements in market conditions [20] Question: Revenue expectations for Q2 - Management anticipates revenue will increase on a quarterly basis but did not provide specific guidance on numbers [27]

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $14 million, rebounding from $12.4 million in Q4 of fiscal 2025, indicating a return to growth after a challenging previous quarter [3][7] - Year-over-year revenue comparison appears flat, but the company views this quarter as a stabilization point and the start of renewed momentum [8] - The operating loss for Q1 was $0.5 million compared to an income of $1.3 million in the same quarter last year, with adjusted EBITDA slightly positive at $60,000 [8][10] Business Line Data and Key Metrics Changes - The research services business contributed $13.7 million to the total revenue, while the data business provided the remaining amount [7] - Gross margin decreased to 43% from 50% in Q1 of the previous year, primarily due to increased outsourced lab service costs [8][9] - Operating expenses rose to $6 million, with intentional increases in R&D and sales and marketing to support the data business [9] Market Data and Key Metrics Changes - Customer cancellations have decreased, and bookings to revenue conversion has improved, indicating stronger customer relationships [4] - The macro environment remains challenging, with biotech funding and R&D budgets under pressure, but there are signs of improvement [3][20] Company Strategy and Development Direction - The company is focused on driving value opportunities in Corellia and its data business while expanding its core TOS platform [3][4] - The radiopharmaceutical services platform is being enhanced with new infrastructure and capabilities, aiming to reduce costs and improve gross margins [4] - The company sees significant long-term opportunities in AI and machine learning for drug discovery [5] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about improving market conditions, although they do not expect a rapid recovery [20] - The company anticipates sequential revenue growth and margin expansion as they bring more work in-house [11] - There is confidence in the ability to execute and deliver shareholder value, supported by a strong balance sheet and no debt [11] Other Important Information - The company ended Q1 with $10.3 million in cash, up $0.5 million from year-end, and expects to remain cash neutral in Q2 [10][11] - Management is committed to investing in organic growth and capital expenditures tied to expansion [10] Q&A Session Summary Question: Any changes in the strategy on the data licensing business? - Management confirmed there are no changes in strategy, but they see potential and customer engagement in the data licensing business [14] Question: How would you characterize the size of the opportunity in the data business? - Management stated it is still early to predict the exact size and success of the opportunity, but there is potential and interest [15] Question: What frameworks are being considered for structuring deals with Corellia? - Management is looking for external partners and funding to support Corellia's advancement and is encouraged by the compelling data emerging from the platform [16] Question: Can you provide insights on the broader investment landscape? - Management noted it remains a tough environment but sees signs of improvement and feels well-positioned to capitalize on opportunities [20] Question: Will Q2 revenue increase compared to last year? - Management anticipates revenue will increase on a quarterly basis but did not provide specific guidance on numbers [27]

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $14 million, rebounding from $12.4 million in Q4, indicating a recovery from previous softness [3][7] - Year-over-year revenue comparison appears flat, but the company views this quarter as a return to stability and the start of renewed momentum [8] - GAAP loss from operations was $0.5 million compared to income of $1.3 million in the same quarter last year, with adjusted EBITDA slightly positive at $60,000 [8][11] Business Line Data and Key Metrics Changes - Research services contributed $13.7 million to revenue, while the data business provided the remainder [7] - Gross margin decreased to 43% from 50% year-over-year, primarily due to increased outsourced lab service costs [8] - Operating expenses rose to $6 million, with intentional increases in R&D and sales and marketing to support the data business [9] Market Data and Key Metrics Changes - Customer cancellations are down, and bookings to revenue conversion has increased, indicating improved customer relationships [4] - The macro environment remains challenging, but there are signs of improvement in biotech funding and R&D budgets [3][20] Company Strategy and Development Direction - The company is focused on driving value opportunities in Corellia and its data business while expanding its TOS platform [3] - The radiopharmaceutical services platform is being enhanced with new infrastructure and capabilities, aiming to reduce costs and improve gross margins [4] - The data platform is gaining momentum, with three consecutive quarters of data sales since the first licensing deal [4] Management Comments on Operating Environment and Future Outlook - Management expresses cautious optimism about improving market conditions, although they do not expect a rapid recovery [20] - The company anticipates sequential revenue growth and margin expansion as they bring more work in-house [11] - There is confidence in the long-term potential of the data business and Corellia, despite current funding challenges in biotech [5][11] Other Important Information - The company ended Q1 with $10.3 million in cash, remaining debt-free, which provides flexibility for future investments [10] - Management plans to continue updating stakeholders on progress in the next earnings call scheduled for mid-December [32] Q&A Session Summary Question: Any changes in the strategy on the data licensing business? - Management confirmed there are no changes to the strategy, emphasizing early wins and potential in the data business [14] Question: How would you characterize the size of the opportunity in the data business? - Management stated it is still early to predict the exact size and success of the opportunity, but there is significant interest [15] Question: What frameworks are being considered for structuring deals with Corellia? - Management indicated they are looking for external partners and funding to support Corellia's advancement [16] Question: Can you provide insights on the broader investment landscape? - Management noted it remains a tough environment but sees signs of improvement and feels well-positioned to capitalize on opportunities [20] Question: Will the stabilization period be more in the first half of the year? - Management believes Q1 may have been the low point for the fiscal year, with expectations for gradual revenue growth [24] Question: Any color on Q2 revenue compared to last year? - Management refrained from providing specific guidance but anticipates revenue will increase on a quarterly basis [28]