Immunoprecise(US:IPA)2023-09-14 18:41Financial Data and Key Metrics Changes - Total revenue for the quarter was $5.7 million, representing a 21.3% increase year-over-year [2] - Gross profit totaled $2.8 million, with a gross profit margin of 49.1%, down from 52.9% in the previous fiscal year [3] - Operating expenses decreased to $7 million from $12.6 million in the same period last year [3] - Net loss for the quarter was $3.6 million, an improvement from a loss of $9.4 million in the first quarter of the previous year [36] - Cash held as of July 31, 2023, was $6.8 million, down from $8.4 million as of April 30, 2023 [11] Business Line Data and Key Metrics Changes - Protein production and B-cell select platform showed significant growth, with Utrecht site growing 44% and Victoria site growing 25.5% year-over-year [2] - Research and development expenses decreased to $0.4 million, primarily due to reduced spending on poly to antibody combination therapy [9] - Sales and marketing expenses increased slightly to $1.1 million, reflecting a small increase compared to the prior year [10] Market Data and Key Metrics Changes - Sales orders increased by 59% year-over-year in Q1, with June sales orders reaching $3.51 million, a 125% increase compared to June of the previous fiscal year [20][21] - July sales orders were $1.56 million, marking a 64% increase over July of the previous year [21] Company Strategy and Development Direction - The company is focusing on integrating AI with wet lab services to enhance therapeutic development processes [1] - A SaaS model is expected to launch in 12 to 18 months, which is anticipated to significantly increase revenue and profit margins [16] - The partnership with BioStrand is in its final phase, focusing on wet lab evaluation of in silico work [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future prospects, driven by new BioStrand-based fee-for-service discovery programs and participation in upcoming conferences [22] - The company is adapting to the dynamic scientific landscape and is committed to leveraging technological expertise for growth [31] - The recent addition of experienced board members is expected to enhance strategic direction and financial strategies [56] Other Important Information - The company filed an F-3 form with the SEC to facilitate a shelf offering, aimed at attracting U.S. investors [59] - The quarterly burn rate slowed to CAD 1.6 million, indicating improved financial management [58] Q&A Session Summary Question: How is the BioStrand acquisition being monetized? - Management highlighted a focus on combined AI and wet lab services as a primary revenue source, with timelines for revenue generation outlined [13][44] Question: What inquiries are being received regarding the HYFT based in silico screening platform? - The company noted increased interest from pharmaceutical and biotech companies, with a focus on addressing biological challenges not successfully tackled in traditional wet lab settings [78] Question: What is the long-term vision for the data management platform? - The data management platform is crucial for reinforcing the synergy between AI capabilities and wet lab services, enhancing data integration and processing [66] Question: Can you provide more detail on R&D expenses related to internal efforts versus collaborations? - R&D spending is primarily focused on advancing fee-for-service offerings, with reduced spending on internal projects as they progress [82] Question: What is the opportunity to convert traditional wet lab work to BioStrand in silico work? - The company views these opportunities as additive to traditional wet lab work rather than a replacement, at least in the near term [84]