Singular Genomics Systems(US:OMIC)2024-05-15 00:04Financial Data and Key Metrics Changes - Operating expenses in Q1 2024 totaled $26.4 million, up from $25.4 million in Q1 2023, primarily due to severance costs [13] - Net loss for Q1 2024 was $25 million or $0.34 per share, compared to a net loss of $23.6 million or $0.33 per share in Q1 2023 [13] - Cash burn for Q1 2024 was approximately $23.2 million, higher than the previous quarter, but expected to decrease in Q2 due to cost-saving measures [50] Business Line Data and Key Metrics Changes - Six G4 instruments were shipped in Q1 2024, generating $0.4 million in revenue, with a total of 30 G4 shipments as of March 31 [21][49] - Gross profit was negative $0.4 million in Q1 2024, compared to a positive $0.1 million in Q1 2023, attributed to initial discounts and higher support costs [27] Market Data and Key Metrics Changes - The demand for spatial sequencing solutions is strong and growing, with a focus on addressing throughput limitations in various customer segments [19] - The company is seeing a strong pipeline of new customer opportunities for the G4X across academic, biopharma, and CRO sectors [10] Company Strategy and Development Direction - The company is shifting its focus to spatial sequencing and multiomics, with plans to bring the G4X spatial sequencer to market [8] - The G4X is designed to offer unprecedented throughput for spatial profiling of tissue, with capabilities including Direct-Seq for in situ RNA sequencing [44] - The company aims to launch a 300-gene immuno-oncology panel and expand its Technology Access Services program [25][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the G4X opportunity, highlighting the unique positioning of the company to leverage its sequencing technology in spatial applications [14] - The company anticipates a ramp-up in service projects in the second half of the year, which will be crucial for generating commercial demand for G4X instruments [11] Other Important Information - The company hosted a customer event to foster relationships and discuss opportunities for collaboration on the G4X [10] - The weighted average share count for Q1 2024 was approximately 73.9 million [50] Q&A Session Summary Question: What capabilities need to be added to G4X for its 2025 launch? - The company is focused on product development work to optimize and harden the service offerings before transitioning to a commercial product [53] Question: How is the company balancing support for existing G4 customers while ramping up G4X? - The current installed base of 30 systems is manageable, and the systems are performing well, allowing for minimal support resources [32][33] Question: What is the expected cash burn trend for 2024? - Cash burn in Q2 is expected to be lower sequentially, with a projected reduction in operating expenses of 10% to 15% [34] Question: Can you provide an update on the Technology Access Program (TAP)? - The company has a deep funnel for service projects across academic, biopharma, and CRO segments, with a focus on minimizing customization [36] Question: When can we expect the first publications related to G4X? - The company anticipates starting to see publications later this year, particularly after the 300-gene panel is operational [41] Question: How does the G4 chemistry differentiate the platform from competitors? - The G4X offers speed, flexibility, and a large imaging area, which are enhanced by the optimized chemistry developed over the past five years [63]