QuantumSi(US:QSI)2022-05-10 03:06Financial Data and Key Metrics Changes - Research and development expenses in Q1 2022 were $18.8 million, up from $8 million in Q1 2021, primarily due to increased headcount and product development activities [28] - Selling, general and administrative expenses in Q1 2022 were $8.4 million, compared to $3.8 million in Q1 2021, driven by additional employees and costs related to being a public company [29] - Total operating expenses in Q1 2022 were $27.1 million, compared to $11.8 million in Q1 2021, with a net loss of $35.2 million compared to $11.8 million in Q1 2021 [29] - Adjusted EBITDA was a loss of $27.4 million in Q1 2022, compared to a loss of $11.1 million in Q1 2021 [30] - As of March 31, 2022, the company had $434.8 million in cash, cash equivalents, and marketable securities, which is expected to support operations through 2024 [31] Business Line Data and Key Metrics Changes - The company is focused on launching its next-generation protein sequencing technology, with commercial builds for platinum instruments in progress [21] - The headcount increased by 22 to 175 employees in Q1 2022, reflecting the company's ability to attract and retain talent [22] Market Data and Key Metrics Changes - The company is establishing a sales funnel with over 500 advanced leads, indicating strong market interest [23] - The marketing team plans to attend several industry conferences in the second half of the year to further develop business [23] Company Strategy and Development Direction - Quantum-Si aims to transform life science research and proteomics through next-generation protein sequencing, similar to the impact of next-generation DNA sequencing [8] - The company is focused on building a digital proteomics ecosystem with a wide range of applications and analytics [17] - The strategy includes releasing white papers and application notes to demonstrate technology and support early access partners [24][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to launch its technology in the second half of 2022, with ongoing progress in operations and supply chain readiness [19][20] - The company is optimistic about the demand for its technology, driven by a shift in focus from DNA analysis to protein analysis in complex diseases [40] Other Important Information - The company is preparing to launch library prep and protein sequencing consumables, which are complex products requiring advanced orders for key components [22] - Management highlighted the importance of understanding customer workflows to ensure successful technology adoption [25] Q&A Session Summary Question: Sales funnel expansion and launch timeline - Management confirmed that the sales funnel continues to expand, with a growing interest in protein analysis driven by complex diseases [38][40] Question: Applications of the QM chip - The QM chip is expected to facilitate targeted studies of 5 to 50 proteins, particularly in cancer drug development and other focused research areas [44][45] Question: Confidence in post-translational modifications (PTMs) - Management expressed confidence in the platform's ability to detect various PTMs due to its advanced technology, which can observe single atom modifications [50][51] Question: Customer strategy and training - The company is focusing on training the sales team and working closely with customers to drive technology adoption [55][56] Question: Supply chain inventory status - Management indicated that they have stockpiled necessary components and reagents to meet demand, ensuring readiness for the upcoming launch [58][60]