QuantumSi(US:QSI)2022-11-08 01:53Financial Data and Key Metrics Changes - Research and development expenses in Q3 2022 were $16.7 million, up from $11.1 million in Q3 2021, primarily due to increased product development activities and personnel costs [40] - Selling, general and administrative expenses decreased to $11 million in Q3 2022 from $14.1 million in Q3 2021, attributed to lower stock-based compensation and reduced consulting services [41] - Total operating expenses increased to $27.7 million in Q3 2022 from $25.2 million in Q3 2021, with a net loss of $31.7 million compared to $18.1 million in the prior year [42] - Adjusted EBITDA loss was $22.9 million in Q3 2022, compared to a loss of $17.5 million in Q3 2021 [42] - As of September 30, 2022, the company had $372.1 million in cash and cash equivalents, expected to support operations through 2024 [43] - Operating expense guidance for 2022 was lowered to a growth of 25% to 30% year-over-year, down from a previous expectation of 40% to 50% [43] Business Line Data and Key Metrics Changes - The company is focused on finalizing customer-facing analysis software and scaling up manufacturing activities for the launch of the platinum instrument [26][27] - The technology demonstrated in the recent publication has the potential to advance biomarker discovery and drug development [25] Market Data and Key Metrics Changes - The company is targeting applications in drug discovery, biologics identification, and protein validation, with future potential in clinical applications [64][65] - Significant interest was noted at industry trade shows, indicating a growing market potential for the next-generation protein sequencing technology [35] Company Strategy and Development Direction - Quantum-Si aims to transform life science research and proteomics by launching next-generation protein sequencing technology [16] - The company plans to develop and test the market in key application areas, prioritizing customer engagement and support for early adopters [34] - The new CEO emphasizes the importance of building a commercial organization and market development strategy [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the transformative potential of their technology for life sciences and healthcare [20][45] - The focus remains on product launch and establishing a customer base before providing revenue guidance for 2023 [49] Other Important Information - The company has decided to relocate its headquarters to a more capital-efficient space in Branford, Connecticut, instead of the previously announced location [29] - The team is actively working on supply chain readiness to support commercialization and meet production goals [38] Q&A Session Summary Question: Will the company provide revenue guidance for 2023? - The company is not providing guidance yet for 2023, focusing on product launch and order backlog first [49] Question: Update on target amino acid detection levels and prelaunch updates? - The current system can access a significant portion of the proteome, and development efforts continue to enhance amino acid detection capabilities [52] Question: What attracted the new CEO to the business and any strategic initiatives? - The CEO was drawn to the company's approach and the quality of the technical team, focusing on supporting the launch and refining the commercial strategy [56][59] Question: Discuss market potential beyond basic research? - The company sees potential in drug discovery, biologics identification, and future clinical applications, emphasizing the importance of early adopter support [62][64] Question: Examples of how protein sequencing can be incorporated into clinical applications? - The technology could help identify biomarkers for clinical research, accelerating their validation and potential clinical use [70][71]