クアンタムSI（QSI）2026年第2四半期決算説明会：Proteusのローンチを2027年第2四半期に延期

主要なポイント

• Quantum SIは、統合装置の設計サイクルをもう1回追加することを決定したため、計画していたProteusの発売時期を2026年末から2027年第2四半期へ延期しました。経営陣は製造上のリスク、システムの再現性、および製品としての準備要件をその理由として挙げています。
• 2026年第2四半期の売上高は、前年同期の59万1,000ドルから34万4,000ドルに減少しました。同社はこの減収の要因として、Platinumの資本支出（装置購入）の伸び悩み、継続的な消耗品利用、Proteusに対する顧客の認知、および商用化に向けた移行戦略上の判断を挙げています。
• 第2四半期のGAAP営業費用は、前年同期の3,050万ドルから2,580万ドルに減少した一方、純損失は2,880万ドルから2,350万ドルへと縮小しました。
• Quantum SIは、約20%の目標を掲げた人員削減を発表しました。これが完全に実施されれば、年間約1,200万ドルの営業費用削減効果が見込まれています。
• 2026年6月30日時点の現金、現金同等物および有価証券の残高は計1億6,990万ドルでした。経営陣は、今回のコスト削減措置を実施した後、利用可能な手元資金によって2028年第4四半期まで事業活動を賄える見込みであると述べています。
• 2026年通期の業績予想（ガイダンス）は変更なく、売上高約100万ドル、調整後営業費用9,800万ドル以下、総現金使用額9,300万ドル以下に据え置かれています。

主要財務データ

事業および営業業績

Proteusの発売時期を2027年第2四半期に延期

統合されたProteus実機のテストにおいて、一部の装置は社内仕様を上回る性能を示したものの、同水準またはそれをやや下回る性能にとどまる装置も存在しました。経営陣は、このまま直接量産に移行することは実行上の過度なリスクを伴うと判断しました。

設計サイクルの追加は、再現性、初回製造歩留まり、および製造性考慮設計の向上を目的としています。また、Quantum SIは監督機能と責任体制を強化するため、プログラムのリーダーシップとガバナンス体制を変更しました。

経営陣によると、課題は主にハードウェアに関連するものです。試薬や消耗品の開発はほぼ想定通りに進展しており、統合実機からのシーケンスデータは、基盤技術に対する経営陣の確信を引き続き裏付けています。

同社は2026年の残りの期間を通じて、設計、構築、および社内テストのサイクルを完了させる見込みです。Proteusの早期アクセス時期はシフトする見込みであり、正式な日程は定まっていないものの、経営陣は2027年初頭が妥当なスケジュールであると示唆しています。

アミノ酸検出およびライブラリ調製

Quantum SIは以前、開発中のシーケンスキットが17種のアミノ酸を検出できると発表していました。装置の開発期間が延長されたことに伴い、経営陣は現在、Proteusが19種または20種のアミノ酸検出能力を備えて発売されると見込んでいます。なお、同社は2026年中に全20種の検出を実証する計画を維持しています。

ライブラリ調製戦略についても、単一の汎用キットから用途特化型キットのスイートへと移行を進めています。経営陣は、このアプローチにより顧客側の最適化要件が軽減され、開発の複雑さが低下すると期待しています。

市場開拓

Quantum SIは、学術研究、バイオ医薬品、産業応用などの分野において、Proteusに関心を持つ250以上の機関を特定し、見込み客として認容しました。

欧州のバイオ製薬顧客とのAAVセロタイピング作業において、Platinumは関連するアミノ酸の違いを検出したものの、日常的な運用に必要な感度を提供できませんでした。経営陣は、Proteusで計画されているナノウェル数に基づくモデリングによれば、顧客が求める感度要件を達成できる可能性があると述べています。なお同社は、150社以上のバイオテクノロジー企業や製薬企業がAAV伝達を用いた遺伝子治療薬の開発に取り組んでいると言及しました。

経営陣は、病原体研究および農業研究における非ヒトプロテオミクス市場の年間機会（TAM）を40億ドル超と試算しています。この試算には、同社が顧客要件の把握をまだ深め切れていない環境、動物衛生、産業、食品分野の用途は含まれていません。

業績予想（ガイダンス）

Quantum SIは2026年通期の見通しを据え置きました。

約20%の人員削減およびその他のコスト削減策により、年間換算で約1,200万ドルの営業費用削減が見込まれています。退職手当の発生や退職時期の影響を処理した後、2026年第4四半期の後半からその効果が現れ始めると経営陣は予想しています。

同社はProteusの重要な開発工程への資金投入を維持する方針であるため、研究開発（R&D）費は最近の四半期と同水準を維持する見通しです。経営陣は、改定されたコスト構造により現金滑走路（キャッシュランウェイ）が2028年第4四半期まで延長されると述べています。

リスクと注目領域

• Proteusは引き続き複雑な開発プログラムであり、経営陣は開発スケジュールを完全な確実性をもって保証することはできないと認めています。
• 追加された統合実機のサイクルでは、量産前に設計変更を確定し、製造を経て、社内性能試験において一貫したパフォーマンスを実証する必要があります。
• 製造には当初の想定よりも時間がかかっており、難易度も高くなっています。特に光学モジュールを装置全体へ組み込む工程でその傾向が顕著です。
• Proteusのスケジュール改定に伴い、早期アクセスおよび顧客への展開時期は後ろ倒しされます。
• 電子部品やGPUのリードタイムの長さを監視しています。経営陣は、現時点で部品調達が制約要因になっているわけではないと述べています。
• Platinum装置の購入の伸び悩みや、Proteusの発売を待つ顧客の存在により、足元の売上高は引き続き影響を受けています。

アナリスト質疑応答の要点

遅延の理由：経営陣によると、スケジュールの変更は顧客からの新たな要件によるものではなく、社内レビューの結果によるものです。レビューにより、統合実機間のばらつきや、製造効率・歩留まりを改善する機会が明確になりました。

2027年第2四半期に対する確信度：経営陣は、改定されたスケジュールには試作機および統合実機のテストから得られた教訓、追加のリスク軽減サイクル、ならびに強化されたプログラムガバナンスが反映されていると述べています。ただし、Proteusが複雑な開発プロジェクトであることに変わりはないとも付け加えました。

初期導入顧客：Quantum SIは、まず新技術を探索する学術研究者からの導入を見込んでおり、次いでトランスレーショナルリサーチ、バイオ医薬品、病原体特定、サーベイランス、および参照配列依存の手法では十分に対応できないその他の用途へと機会が広がると期待しています。

Platinum顧客との関係維持：同社はProteusの開発期間中も設置プログラムを継続するのに十分なPlatinum Pro装置を保有しています。顧客は用途開発作業にPlatinum Proを使用することも、Proteusの発売を待つことも可能です。

AI活用の機会：経営陣は、バイオ医薬品および学術研究の両分野において、AIモデルのトレーニングに役立つ豊かなプロテオミクスデータセットに対する需要があると述べています。同社はProteusがそのようなデータセットの作成に貢献すると期待しています。

決算説明会 文字起こし全文

決算説明会の完全なトランスクリプト

経営陣による説明

Operator

Thank you. Good day and thank you for standing by. Welcome to the Quantum SI Second Quarter 2026 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you'll need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again.

Please be advised that today's conference is being recorded. I'd now like to turn the conference over to Risa Lindsay.

Unknown Speaker

Good afternoon, everyone, and thank you for joining us. Earlier today, Quantum SI released financial results for the second quarter and six months ended June 30th, 2026. A copy of the press release is available on the company's website. Joining me today are Jeff Hawkins, our President and Chief Executive Officer, as well as Jeff Kyes, our Chief Financial Officer. Before we begin, I would like to remind you that management will be making certain forward-looking statements within the meaning of the federal securities laws. These statements involve material risks and uncertainties that actual results or events to materially differ from those anticipated. Additional information regarding these risks and uncertainties appears in the section entitled Forward Looking Statements of our press release.

For a more complete list and description of risk factors, please see the company's filings made with the Securities and Exchange Commission. This conference call contains time-sensitive information that is accurate only as of the live broadcast date today, August 13th, 2026 at 1.30 PM Pacific time. Except as required by law, the company disclaims any intention or obligation to update or revise any forward-looking statements. During this call, we will also be referring to certain financial measures that are not prepared in accordance with U.S. generally accepted accounting principles or GAAP. The reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is included in the press release filed earlier today.

Jeffrey Hawkins

With that, let me turn the call over to Jeff Hawkins. Good afternoon, and thank you for joining us. On today's call, we will provide a business update and review our operating results for the second quarter of 2026. After that, we will open the call for questions. Before diving into specific updates, I want to address at a high level the Proteus roadmap update we announced earlier today. We have updated the Proteus launch timeline from the end of 2026 to the second quarter of 2027. The primary driver of the change is the decision to add an additional integrated instrument design cycle to the program prior to moving to production.

In connection with this roadmap review, we have also made program leadership and governance changes to strengthen accountability, improve technical oversight, and ensure the Proteus program is managed against clear product readiness gates. Furthermore, we are taking operating expense actions in parallel with this roadmap update that are designed to reduce our cash burn and align our cost structure with the revised timeline while preserving investments in the highest priority Proteus workstreams. Our conviction in Proteus remains strong. We have generated sufficient sequencing data from integrated units that we remain confident in the underlying technology. Thank you. That said, we are taking these actions now because we believe it is more responsible and capital efficient to de-risk the platform before production than to move forward before product readiness is fully demonstrated. Focusing on the customer experience at launch is the most important thing we can do to protect the long-term value of the Proteus platform. The remainder of the call will be organized around our three corporate priorities for 2026, which are as follows. deliver Proteus with the capabilities customers need to prepare the market for Proteus launch and to preserve our financial strength.

Our first priority is to deliver Proteus with the capabilities customers need. First, let's start by diving a bit deeper into the instrument development. In 2025, we built and tested Proteus prototypes. first half of 2026, we built and began testing integrated units. Those integrated units have generated valuable learnings about both manufacturing processes and system level performance that prototypes could not fully provide. Based on that testing, we concluded that moving directly from the current integrated unit design to production would carry more execution risk than we are comfortable with taking. therefore adding an additional integrated instrument design cycle before moving into production. The purpose of this additional design cycle is to reduce manufacturing risk, improve system repeatability, strengthen product readiness, and to ensure a positive customer experience at launch. We are making this decision now because we believe it is more responsible and more capital efficient to de-risk the platform before production than to scale prematurely and put the customer experience at risk.

Finally, I want to reiterate that we have generated sufficient sequencing data from integrated units that we remain confident in the underlying technology. Turning now to recognizer development, we communicated on our first quarter earnings call that our internal developmental sequencing kit was able to detect 17 amino acids. progress in this area and the pace of improvement we are seeing has continued to meet our expectations. Given the revised instrument timeline, we will be able to progress even further in this area before locking the reagent formulation for launch. We believe that with this additional time, we will be in a strong position to deliver Proteus with a detection capability of either 19 or 20 amino acids at launch. We will have greater clarity on this. specific reagent configuration when we get closer to launch. Finally, I want to share an important update on our library preparation strategy. As a reminder, library preparation is the process used to prepare a customer sample for sequencing.

Our kit performs two key functions, digesting proteins into peptides and attaching a linker to those peptides. That linker enables each peptide to attach to the bottom of the nanowells on our sequencing array where it can be sequenced as a single molecule. Historically, we approached library preparation as a general purpose kit intended to work across the broad range of proteins and applications. One of the important benefits of having our first generation platinum system in the market is that we have gained significant real-world insight into how different proteins behave during library preparation. as well as customer needs across a range of applications. Through our work supporting Platinum customers, we have also developed improvements and add-on capabilities related to library preparation, both internally and, in some cases, in collaboration with customers. These learnings have led us to an important strategic shift, evolving from a single generic kit to a suite of application-oriented kits that can be used individually or in combination to optimize sequencing performance for specific customer use cases. We believe this strategy provides two key advantages.

First, by giving customers more complete off-the-shelf tools tailored to their applications, we can make implementation more efficient and reduce the amount of customer optimization required. Second, this approach allows our development teams to deliver a broad range of capabilities faster and with lower technical risk. Developing kits around more specific application needs is less complex than trying to make one generic kit, which performs optimally across every protein type and workflow. We are excited about this strategy and believe it positions us to bring new library preparation capabilities to market in connection with the Proteus launch. Our second corporate priority is to prepare the market for Proteus launch. As a reminder, during 2025, we launched a placement program for our first generation Platinum system. This program allows customers to access the platinum instrument in their own labs without needing to secure budget for an upfront capital purchase.

Through this program, we have gained important market and technical insights that give us increasing confidence in the opportunity for protein sequencing and in the alignment between customer requirements and our target specifications for Proteus. First, we have had the opportunity to work with customers across a broad range of applications spanning academic research and biopharma. One recent example is work we have been doing with a BioPharma customer in Europe on the application of protein sequencing to adeno-associated viral vectors, or AAV serotyping. AAVs are commonly used as delivery vehicles in gene therapy, and the presence and relative abundance of different AAV serotypes is important to therapy performance. This application is well suited to protein sequencing because the differences between AAV serotypes often involves only a small number of amino acid differences. With platinum, we have been able to demonstrate the ability to detect relevant amino acid differences. However, due to the limited sequencing output of platinum, we did not reach the sensitivity required for routine use in that customer workflow.

Importantly, using the platinum data, we were able to model expected performance on Proteus based on its planned increase in number of nanowells, and that model suggests the customer sensitivity requirement is achievable on Proteus. Based on readily available market data, there are more than 150 biotech and pharmaceutical companies developing gene therapies that use AAVs for delivery, suggesting that this single application could represent an attractive market opportunity for Proteus. The second important learning from our platinum commercial activities is the potential opportunity in non-human proteomics. Earlier this year, researchers at the U.S. Naval Research Laboratory published data using our single molecule protein sequencing technology for novel pathogen and toxin detection. Over the past few months, we have been working with multiple customers applying protein sequencing to agricultural applications, pathogen detection and typing, and viral protein surveillance applications. We have identified two important features of non-human proteomics that make it especially interesting for Proteus. many of these markets are not well served by traditional techniques such as immunoassays or western blots.

Second, in many applications, customers need a technology that does not depend on a defined reference because the pathogen or protein of interest may evolve through small changes including single amino acid differences. We believe these market features align well with the core capabilities we are designing into Proteus. based on readily available market data and looking specifically at the pathogen research and agricultural research markets where our platinum work has given us a clearer understanding of customer needs. We believe the non-human proteomics market opportunity for Proteus is substantial at more than $4 billion annually. We believe this is a conservative estimate because it does not include additional segments such as environmental, animal health, industrial, or food applications where we believe there may be meaningful future opportunity, but where our understanding of the specific customer needs and fit for protein sequencing is still developing. Finally, I want to provide a brief update on our commercial initiatives to build awareness of Proteus in advance of launch. Commercial team has been executing well, and we continue to receive very positive feedback on Proteus and the wide range of applications it is designed to address. To date, we have identified and qualified more than 250 unique institutions with stated interest in Proteus and the capabilities we are aiming to deliver. and institutions span multiple market segments, including academic research, biopharma, and industrial applications, and they have asked to be updated as new information and data become available.

We will continue to provide updates on this important market development initiative as we progress toward the Proteus launch. Our third priority is to preserve our financial strength. As I stated earlier, the operating expense actions we communicated today are intended to reduce cash burn, extend our runway, and align our cost structure with the revised Proteus timeline while preserving investments in the highest priority workstreams required for launch. We are making these decisions as a matter of fiscal discipline. Our focus is to concentrate resources on the activities that most directly improve Proteus readiness, de-risk the platform before production, and allow us to fund that work responsibly over the extended timeline.

Jeffry Keyes

I will now turn the call over to Jeff to review our financial results. Thanks, Jeff. I'll now review our second quarter and first half financial results this discuss the expected financial impact of the operating expense actions we announced today, and then provide an update on our full year outlook. Revenue in the second quarter of 2026 was $344,000 compared to $591,000 in the second quarter of 2025. Revenue for the first six months of 2026 was $602,000 compared to $1.4 million in the prior year period. Results continue to reflect the dynamics we have discussed throughout 2026, including limited near-term capital purchasing activity for platinum, ongoing consumable utilization for our installed base, customer awareness of the anticipated Proteus launch, and deliberate commercial decisions designed to position customers for for a successful transition to Proteus. Gross profit was 172,000 in the second quarter of 2026, resulting in gross margin of 50%. For the first six months of 2026, gross profit was 246,000, resulting in gross margin of 41%.

Gross margin continues to be affected by the mix in timing of instrument, consumable, and service revenue, as well as the commercial choices we are making to support the market readiness for Proteus. Turning to expenses, GAAP total operating expenses for the second quarter of 2026 were $25.8 million compared to $30.5 million in the second quarter of 2025. the adjusted operating expenses were $22.6 million compared to $23.8 million in the prior year quarter. For the first six months of 2026, GAAP total operating expenses were $49.9 million and adjusted operating expenses were $43.9 million. We continue to manage expenses with discipline while prioritizing the investment required to complete Proteus development. scale internal testing, support manufacturing readiness, and prepare the commercial organization for launch. As part of this disciplined approach, earlier today we announced operating expense actions, including a targeted reduction in force representing approximately 20% of the total company headcount. These actions are designed to better align our expense base with the updated Proteus development plan, reduce cash usage, extend our runway, and provide additional flexibility as we execute the remaining product readiness work. In making these decisions, we were deliberate in preserving investment in the highest priority work streams required for the Proteus launch.

We expect these actions, once complete, to result in approximately $12 million of annual operating expense savings. Net loss was $23.5 million in the second quarter of 2026 compared to a net loss of $28.8 million in the same period of the prior year. Adjusted EBITDA was negative 21.2 million compared to negative 22.2 million in the prior year quarter. Dividend and interest income was 1.7 million compared to 2.3 million in the prior year quarter, reflecting the rate environment and changes in vested balances. As of June 30th, 2026, we had $169.9 million in cash, cash equivalents, and investments in marketable securities. Taking into account the reduction in force and other operating expense management actions, we now believe we have sufficient capital to support the updated Proteus plan, execute the key activities required for launch, and fund operations into the fourth quarter of 2028. This runway allows us to remain focused on the highest return uses of capital, including platform readiness, customer sample evaluations, manufacturing readiness, and commercial launch execution.

Our full year 2026 outlook remains focused on three financial priorities. maintaining spending discipline, funding the activities required to deliver Proteus with the capabilities customers need, and preserving the balance sheet strength necessary to support launch and adoption. For the full year 2026, we're reiterating guidance of revenue of approximately $1 million, adjusted operating expenses of $98 million or less, and total cash usage of $93 million or less. The key financial takeaway is that we are aligning our capital allocation with the updated Proteus Development Plan. Prevised launch timing allows us to complete the additional design, testing, and readiness work needed before production, while the operating expense actions announced today are intended to fund that work in a disciplined manner. We're also continuing to invest in the activities that support customer confidence ahead of the launch, including evidence generation with platinum, Proteus awareness initiatives, customer sample evaluations, and targeted commercial engagement. Taken together, these actions are designed to reduce cash usage, extend a runway, and preserve the financial flexibility needed to execute the Proteus launch plan effectively. In summary, we remain focused on using capital efficiently, funding the critical path to Proteus launch, and making the right long-term trade-offs to support the adoption of the Proteus platform.

Operator

With that, operator, please open the line for questions. As a reminder, if you'd like to ask a question at this time, please press star one one on your touchtone phone, and wait for your name to be announced. To withdraw your question, please press star one one again. Our first question today will come from Scott Henry with Alliance Global Partners.

質疑応答

Scott Henry

Thank you and good afternoon. I'm going to start with a couple big picture questions. I recognize you probably answered this perhaps in more detail, but I'm just looking for kind of a... you know, top down, higher level thought, you know, what drove the change? Did it come from customers or, you know, as you were working through it, did you just say, hey, you know, if we make these changes, it'll be that much more of an effective product?.

Jeffrey Hawkins

Yes, Scott, it's a good question. It comes from our internal assessment. You know, it's a mix of just the performance we're seeing in terms of repeatability and consistency across the machines we have, thinking about what the manufacturing processes have looked like all the way from the optical module and its sort of yields and success rates into the integrated machines, looking at that and saying what improvements are necessary to have a very high quality repeatable manufacturing and supply chain, looking at long lead components and planning those out. It's really us thinking through all of those things and saying to have the highest likelihood of success to ensure that this is the machine that customers expect, performs the way we want, can manufacture it and deliver it consistently, we believed we needed to add this additional cycle. It wasn't driven by some sort of new feedback from customers that caused us to believe we need to add some capabilities we weren't planning for. It's really an internally driven assessment of where we are and the best way to get to the product with the capabilities and manufacturing quality we expect.

Scott Henry

Okay, great. That's helpful. And with regards to the target of 2Q27, do you feel pretty comfortable in that number? How much risk is there to that date, I should say?.

Jeffrey Hawkins

Yes, Scott, it's a good question. It's a complex development program, so you're never 100% sure of anything. That said, I can tell you that we completed a very thorough review of the program. We took all the learnings from both prototypes and integrated unit testing. into consideration. We've added this design cycle that really helps us to retire a lot of key risk before we move into production. And then we, as we mentioned in our prepared remarks, really stepped up some of the program management side, the things we're doing to have even higher oversight and governance. you know, including from my role, you know, in this project. So I think when you take all those together, you know, based on everything we know, we think we factor that in, that the timeline of Q2 reflects the work required to deliver the product that meets our standards.

And that's, you know, sort of how we landed on that date.

Scott Henry

Okay, great. And then, you know, another big picture question. I think everyone understands the enormity of the proteomics market in the different applications and how each one individual can be a blockbuster indication. But the question is, your new products, they tend to have something that leads the way, a hook. And do you get a sense of, when you go to launch it, what the hook for it is? the Proteus is going to be, who are going to be the main initial users, adopters of the technology, or maybe it'll be a mix of multiple. I just wanted to get your thought on that early adoption.

Jeffrey Hawkins

Yes, I think so of a couple things. I think naturally with any new product launch and we saw this even in the very earliest days of platinum, you're going to have some number of customers often in the academic research space who are going to adopt the new technology and sort of explore its capabilities. and its edges of performance. I think there's always going to be some number of those folks. That's obviously not your big sort of user base for the long haul, but they certainly are there in the early days. I think as we look at where are more of those applications market segments where you can edit, sort of have that initial hook. I sort of would think of it in two ways. One is clearly in the academic research environment, our ability to have very high coverage of proteins, be able to address the most studied post-translational modifications.

Those types of things fit very well into sort of that translational world. I've got a protein, now I wanna study it in a population of people. I think as we look more into biopharma and other industrial applications, as we talked about on our call a bit. Our ability to work with proteins that aren't covered by existing technologies, we've seen this a bit in the military applications we've talked about. We've worked across multiple branches here and within U.S. military, we've got active engagements with other militaries outside of the U.S. You know, this sort of ability to apply a technology that doesn't need a defined reference to things like pathogen identification, pathogen surveillance, other epidemiological type of work. We think that opportunity could be very helpful. very meaningful and isn't well served by a competitive method.

So that could be another area where we see sort of a hook. And that spans researchers, it spans government entities, it could span industrial as you think about antibody production and other things. So I think those are maybe the two really unique capabilities.

Scott Henry

we see sort of having some hooks into the different segments. Okay, great. Just a final quick question on R&D. I can see SG&A contracting with the cost cuts. How should we think about R&D in the next couple of quarters relative to Q2?.

Jeffry Keyes

I think you're going to see R&D fairly consistent to prior quarters. I mean, there are some adjustments as we streamlined the timeline. development process as we commented on earlier, Scott, but by and far and large, The spend on the program and the important spend on the program will remain intact because that's the most important thing that we're doing here. There could be some ups and downs just over the next couple of quarters as we change around a few things to make sure the program's on track and it stays on track for Q2 2027. But our operating expenses are still there. action is really hitting all areas across the company and is really associated with the timeline of the program and to make a few things around the company more efficient. So, you know, from that aspect, I think you're going to see the spend relatively consistent with a few adjustments. Okay.

Scott Henry

Okay, great. Thank you for taking the questions. Thanks, Scott.

Operator

Our next question comes from Michael King with Rodman and Renshaw.

Michael King

Hi, guys. Thanks for taking the question. Maybe just a bit of a follow-up on Scott, your answers to Scott's questions about the additional design cycle. So, again, just to be clear on this, was this – function of you running demonstration runs with, you know, with prototype systems, or was this a result of some scale-up that you were doing for, you know, future customer delivery? That's the first part of the question. And the second part of the question is, How does this affect your ability to satisfy the early access program that you've put in place?.

Jeffrey Hawkins

Yes, Michael, so again, this is driven by us having deployed integrated machines in our R&D environment and looking at the repeatability of the performance we see, not just in pure sequencing, as you can imagine when you're developing a product like this, you're also looking at a lot of the performance. a lot of other more fundamental performance metrics or requirements of specific submodules even of the system. And what we were really looking at is how are all of those things performing? Where are they against what our expectation is? And that feeds back into also, what did we learn when we produced those units? and what other things we could do that would make that process more efficient in the future or result in a higher first pass yield. So it's a mix of assessment of the repeatability of performance and also our assessment of opportunities to make some design for manufacturability type changes now that to you the second part of your question is critical when you think about when we launch we want to be able to confidently and reliably make these instruments and deliver them to customers. So some of those changes are exactly aligned to do that so we don't end up with that learning down the road when we're in the market. Okay. And would it apply to the reagents themselves, Jeff, or just the instrumentation? It's very hardware-focused, Michael. I mean, reagent development is still ongoing as well as the consumables, but those areas have really been tracking largely to our expectations, very instrument-centric areas.

Michael King

on this particular sort of topic. Got it. And the part of the question about the early access? Yes.

Jeffrey Hawkins

Yes, so we haven't yet officially started any early access. We have announced that we have for select customers done some sample testing. With this shift in the timeline, we would expect that the early access will also move out. We don't have an official date with which we're saying we're going to start that activity. But I think from our mindset, we want to really see this instrument design cycle get completed, built, and tested internally. That would then allow us to sort of open up for testing customer samples and then sort of following on would be sort of deploying these into the field for early access. So I think that event's going to, you know, it's going to obviously shift out in time.

Yes.

Michael King

Okay. And then is there any thought maybe you could, would you be able to, I know you're limiting your supply with Platinum Plus, but, sorry, Platinum Pro, but are you able to, you know, swap those units in just to keep, you know, potential clients engaged with the, you know, with the company? Yes.

Jeffrey Hawkins

Is that kind of a good idea? Yes, Michael, we have sufficient Platinum Pro machines to be able to work with customers. We have been continuing to use the placement program where we have folks, as the one example I gave, around AAV serotyping. That's a good example of leveraging the placement program to to engage with a customer, work on their application, really for us, both the customer and us, to understand exactly what's needed to get there. And we feel very good there about Proteus sort of closing the remaining gap. So we still have that available. Our reps have that available. Some customers like that path, others prefer to wait and start with produce. So we really let the customers steer that, but we're comfortable that we have sufficient supply of to continue to support that placement program, you know, as customers may be.

Michael King

request on the path to Proteus. Okay. And just as far as kind of merging, you know, the full... Excuse me, the full suite of reagents with the commercial unit, assuming that you guys hit your timelines. I was under the impression you'd have... you'd have all the full repertoire of 21 amino acids available sometime in the first half of next year. Is that still your goal? And would that mean that when... produces out there that the um you know the full suite of uh reagents is available.

Jeffrey Hawkins

Yes, so Michael, let's go back. What have we said sort of historically? We've said when we believed we would launch Proteus by the end of this year, we had said we would launch with 18, and we would demonstrate all 20, and then add 20 when we got into 2027. What we communicate today was with the timeline move we expect now that we'll be in a position to launch with either 19 or 20 if we launch with 19 then we would still expect to bring on 20 during 2027 we just don't know yet exactly where we'll land on 19 or 20 but we still think we'll be able to demonstrate all 20 this year we just aren't yet ready to commit to exactly what will be in that kit except to say we do believe it will be either 19 or 20 given the additional time.

Operator

Okay. Thanks very much for taking the questions. Yep. You're welcome. Our next question comes from Kyle Nixon with Canaccord Genuity.

Unknown Speaker

Hey, guys, thanks for the questions. On the additional cycle that you're, I guess, working on, can you maybe speak to how performance or reproducibility could be affected by this? Or maybe the steps that you take to avoid maybe impacting what your prior performance level expectations were going to be?.

Jeffrey Hawkins

Yes, Kyle, I think – let me answer what I think you're asking, and if I'm off, just let me know. So what we've observed, again, in the units that we have internally is we have some instruments that really reliably perform at a very high level, meaning above our internal specifications. for the product. We have other machines that are performing sort of at or a little below where that's at. And what we are really trying to do with this set of this sort of design spin is, you know, make the changes we've identified that we believe allow all of those units to be performing consistently at that higher level. So we think this enables us to sort of unify the repeatability sort of profile of the instruments and also equally as important, take some of the complexity or challenges we saw in manufacturing out by making those designed for manufacturability improvements. So I think it will be a combination of the improvement and the simplification of the manufacturing process, but then also the repeatability we should see in the machine should continue to trend up.

Unknown Speaker

and be consistently above our internal specifications. Yes, that was perfect. Thanks, Jeff, for the clarification. And I guess on this note, I'm not I mean, I'm curious if the production time or any sort of... you know, any kind of like timing with, I don't think the sales cycle is a good question for this, but I think like the production could be interesting to ask about. Could that be, is that elongated through this process? It's like not really clear if this is how much is affected in manufacturing versus the kind of the end product, if that makes sense. Thanks. Yes.

Jeffrey Hawkins

Yes, that's a good question. So I'll say a couple of things on the manufacturing front. It has definitely been more challenging and sort of longer to get we had anticipated. I think we have an optical module that is made as a fully built up component by one of our partners that is then sort of and shipped to our instrument partner who then puts that into the broader fully integrated machine. When you're doing this for the first time, you certainly learn a lot about how each of the steps in the process works, how bringing all that together works, and then learn a lot about how exactly exactly do you test that and confirm its functioning is going to meet its requirements. So we've definitely learned a lot about that. That improves every time we make another machine, and I think with the set of changes for manufacturability we've identified, we'd expect with this next cycle for that to look a lot better. to look a lot more compressed and lead to a very high yield sort of success coming out the end of the line. So I'd say sort of that about the manufacturing side of the house.

In parallel, we are obviously being very conscious conscious of how lead times of components can move around. That is not a constraint today, but we're watching very closely, especially in the world of electronics and GPUs, to make sure – I mean, you don't have to be an expert in AI to know that the proliferation of data centers and the build out there is a massive consumer of those chips. So we are definitely staying very close to our vendor for those and ensuring that we have those procured well in advance so that when we get to the production stage, that's not a limiting factor. So I think that's the most important thing to limit any future production is really staying on top of long lead components. But I think in terms of just the time to build, that should be largely resolved through this next spin we do prior to going into production.

Unknown Speaker

All right, excellent. On the topic of data, so with this like chip inflation and memory prices increasing and everything, of your exposure to that potential challenge, I guess, beyond 26 when you have Proteus out there? I know the architecture is a bit different, but maybe obviously like the company's has been reliant upon semis and everything. So just remind us, thanks. Yes, so if you look at Platinum, the consumable is based on.

Jeffrey Hawkins

semiconductor chip so you're sort of square in the foundry world of producing chips when you look at Proteus that that consumable is essentially a fused silica ray so a form of a glass array that's not a CMOS chip it has a fabrication step where we put the nanowells on, but in that context there are many vendors that can do that, and we're a very small consumer of that. We also get a lot more individual consumables from a single . So our exposure to sort of the semiconductor and chip world sort of goes away when we move into Proteus. In terms of the instrument, we still have a little bit of exposure in terms of the GPU. We have a GPU in this system to do data analysis. Again, we're a pretty small player in that world, so we don't perceive it as a As a large risk, that said, we understand lead times can be very long. And given the relatively low number of these that we use, comparatively, it's very easy to sort of stockpile a bit and hold that to just sort of buffer any potential for that sort of the supply of GPUs to be moving in or out. sort of get away from the historical CMOS-related semiconductor chip that was certainly more at risk of the sort of the foundry capacity that you're alluding to.

Unknown Speaker

Okay, that's what I thought. And then on the non-human market opportunity that you talked about, I think that was $4 billion. And I assume it's plant-animal and similar things like that. I mean, I have to imagine that was always part of the plan, I guess. Maybe just kind of backtrack a bit and talk about originally why human, I guess. I suppose, was maybe the focus, and especially on the pharma side, of course those drugs are meant for humans, and going forward maybe this is a good, like, low-hanging fruit potentially for early on with Proteus and, I guess, with the residual platinum activities.

Jeffrey Hawkins

Yes, so Kyle, I think obviously we've always wanted to target our technology to any markets as we can. I think naturally when you go to market, given all of our respective backgrounds and the backgrounds of our sales professionals, you go to large academic centers, large academic medical centers, biopharma. And when you're in those, you're largely in the human world, whether it's basic research, mechanism of action, translational, you're in, to your point, you're in sort of the human world. Platinum is really a show. showing us really what the breadth of that non-human market might look like. With platinum, we originally got our first sort of exposure to this through the military side with pathogen and toxin detection. When we opened up the placement program, we got drawn into more, in the area of pathogen ID and surveillance, antimicrobial resistance, lots of different areas sort of getting drawn into different types of laboratories doing that work. Those can be government, they can be industrial, they can be academic.

The other side is with the placement program, we got drawn into some in the agricultural space So really, Platinum, what Platinum did was draw us in in a way where we got a depth of understanding of what the customer is trying to accomplish, the limitations of the tools available to them, and what specific capabilities we could add that would make our technology even more attractive in that segment. So while it's all you. been a part of our plan, I think the depth of understanding we've been able to gain from the platinum exposure really helps us make sure all of those capabilities and the additional that they're looking for are in the Proteus platform so we can really go attack that when we launch the platform.

Unknown Speaker

Great. And last one on AI. So, I'm just curious if you're hearing anything, like, any inbounds or if you're, like, looking forward a bit and trying to think about, you know, the potential to generate proteomics data to train an AI model, maybe at, like, a pharma and just given, you know, for clinical human samples, you need kind of more of a, there's a wide dynamic gradient involved there, you know, can, you know, Proteus maybe satisfy that market opportunity as well, given that could be relatively larger for time.

Jeffrey Hawkins

Yes, Kyle, I think you're spot on, and I think we're hearing this. Not only are we hearing it, I think other companies operating in the proteomics space are certainly talking a lot about AI. To get the most out of AI, it's really about the training data, how rich is that data, Is it linked to outcomes or phenotypes, those types of things? So we certainly are hearing that in the marketplace. We're hearing it not just in biopharma, but also we hear about it in the academic space because many of the leading academic institutes are sort of operating at the cutting edge of AI tools for whether that be proteomic analysis, whether it be protein and generating novel proteins or whether it be how might we multi omic integrate different modes of data and get the most out of that so I think academic institutes are certainly playing a big a big role in that area I'd also say internally we've talked about this before but just to reinforce it you know intelligence has been something we have applied significantly in our operations. We use it in the analysis of data. We use it in many other functions. We've talked about it in the recognizer design, the enzymes in our kit, but we also use it across marketing and finance and other areas market research inside the company and it's a it's certainly a very powerful productivity tool as well.

So we're bought in. We definitely believe in it as a tool we use, and we do believe our technology will play a role with Proteus in helping people who are looking to build those sort of rich databases to train AI models.

Unknown Speaker

Awesome. I have one more question for Jeff Kyes. On the model, so the $12 million in OpEx savings, yes, that's a lot. I think it was referenced earlier how that's probably just mostly SG&A, but can you just talk about the cadence and the timing of when that truly will hit and be fully implemented over the next couple of quarters? Yes.

Jeffry Keyes

Yes, I think we're going to start seeing the benefits of that in, call it, fourth quarter, second half of fourth quarter, because we have to work through seventh related costs and the timeline of certain folks leaving the company. But on an annualized basis, that was my prepared remarks that we expect 12 million related to this specific company. action of annualized savings as we move forward once it's all once it's all implemented.

Operator

Okay, perfect. Thanks, guys. Appreciate it. Thanks, Kyle. Our next question comes from Charles Wallace with HC Wainwright.

Unknown Speaker

Hi, thanks for taking my questions. This is Charles. I'm for RK. So, I was wondering if you could share kind of the specific gating items between now and the second quarter of 27. Yes, and what what new items are in there that weren't in the prior game items? I.

Jeffrey Hawkins

Yes, I mean, the main gating item, Charles, to our prepared remarks is adding this additional instrument design cycle. So that cycle involves, you know, finalizing the exact changes we're going to make in that cycle, rolling that through manufacturing. building those machines and getting them in-house and tested. So we expect to work through that cycle of finalize the design, build, test, and confirm performance, you know, over the course of the remainder of this year. So that's really the big task. Assuming that task goes well, we intersect it with what we're doing on the on the reagent side and with the consumables, and then you bring that together through the first half of 2027 and with the launch in the second quarter. So I would say that that's the key gating item is really just working through that cycle, getting those instruments installed, and confirming the performance. Okay.

Unknown Speaker

Yes, that's really helpful. And then I guess another question. So I think you said earlier that you haven't started the Early Access Program, if I heard correctly. And so are you still planning to do that? And when would you kind of do that? Would that be kind of this year event or maybe before the launch?.

Jeffrey Hawkins

Yes, so it's definitely before the launch, but yes, I did answer that earlier. You're correct. We haven't started that yet with this design cycle that we're going through. We wouldn't expect to start that till sometime after this cycle is complete. So, you know, we don't have an exact date, but if you just sort of think through this cycle, you know, confirming the performance, you know, it's probably more of a end of year, beginning of next year type of event is where that would happen. What we're hoping to be able to do perhaps in advance of that is start allowing customers to send some samples for evaluation. Again, we don't have an exact date for when we would offer that capability, but that's something we're keeping a close eye on we'd like to be able to do that and we would expect to be doing that before we went to a deployed sort of early access. So right now if you're trying to peg something I'd say I'd be thinking more, you know, as early access is sort of an early 2027 type of event.

Okay, that's very helpful. Thank you. Thanks, Charles.

Operator

Our next question comes from Jason McCarthy with Maxim Group.

Unknown Speaker

Hey guys, this is Michael Okunowich on the line. Thank you for taking my questions today. Just a couple, primarily on the market opportunities here. First off, I wanted to ask just about the non-human proteomics market, how mature that is and if it's, I guess, ready for a device with the capabilities of protease at this time, or is this something where you would need to build out a base of published academic research first?.

Jeffrey Hawkins

Yes, so it's a good question. And what I would say is the reason we focused our remarks on specifically the pathogen research and agricultural is because we've got actual hands-on experience with our existing Platinum and Platinum Pro devices in that market segment. are customers trying to solve problems or address initiatives they have right now in place from their institutes. So we believe those markets are absolutely ready for the technology. Some are already applying our first generation technology and many of them we would expect would move and apply the Proteus technology. Where your comment about the maturity of the markets comes in is the part that we also talked about a little bit in the prepared remarks, which is there are a lot of other areas in non-human like animal health or industrial or food or environmental. Those areas we don't have as much of that direct customer experience, and yet we're doing the work to learn about those. So we're not really factoring those into our thinking right now, because to your point, we don't know exactly what the fit of the technology is or what the exact need or urgency might be.

But certainly in pathogen and agricultural, given the platinum work, think it's a market that's there today and we think Proteus will only build upon the opportunity that we've already sort of uncovered with Platinum.

Unknown Speaker

Thank you. And then I wanted to see if you could help qualify the difference between only capturing 17 or 18 aminos versus capturing the full suite. Is this something where there's an incremental benefit to the end users, or does having the full suite open up new applications entirely?.

Jeffrey Hawkins

Yes, I would think of it in two ways. One is, as you start to get out to 18, 19, and 20, you can imagine that we're talking about, generally speaking, lower abundance amino acids. As you can imagine, when we were developing the technology, we tried to target the most abundant one. So I think for many applications, a significant difference between 18, 19, or 20. I think in the area of really deep protein profiling, so maybe somebody who wants to try to sequence as many of the amino acids, let's say, in an antibody as they can, that's where that sort of, to your point, that opportunity opens up or if people want to do that, they might really care about, you know, the difference between 18, 19, or 20. So I think there are some examples of that. There are many instances where it's probably less impactful to the performance.

But I can tell you there's also just a general, of psychology of customers that I think getting out there to 19 and 20 just sort of resonates as it's complete. It's sequencing. I think when people think of sequencing, they largely think of DNA and they think of, you know, you've got to cover all the bases in DNA. So I think there is sort of maybe a little bit of a mental or psychological bar that it's a less nuanced conversation with the customer when you have all 20 than when you have, say, 18 or 19. But I think outside of a small number of applications where you really need all 20, it doesn't really open up a lot of markets. It's more you overcome the need. that it makes the sales cycle a bit more straightforward. It makes the explanation easier. get into all these nuances with a customer about what you know what coverage they need for their application.

Unknown Speaker

Yes, you don't have to justify why 18 isn't enough anymore.

Jeffrey Hawkins

It's the same concept in the DNA sequencing world. Before we were sequencing everything, we used to use arrays, right? And the question was, well, how many of the different SNPs in the genome could you look at? Well, this one looks at 500,000. This one looks at 800,000. And eventually when sequencing came out, it was like, well, I can just now look at the whole exome. or the whole genome, and people just moved there because they didn't need to make that choice. They didn't need to think through exactly what panel they needed if they could just see the whole thing. I think sequencing is somewhat like that in protein. If you just have the full suite, you don't have to really help people think that through despite the fact that in most applications the difference between 18 19 or 20 is very marginal.

Unknown Speaker

Well, thank you. I really appreciate the additional color. Congrats on the progress.

Operator

Thank you. Thank you. This will conclude today's conference call. Thank you for participating. You may now disconnect.

This live transcript is auto-generated without human intervention or review.

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