Q2 2024 Nautilus Biotechnology Inc Earnings Call

Operator: Good day, and thank you for standing by, and welcome to the Nautilus Q2 2024 earnings conference call. At this time, all participants are in listen-only mode.

Operator: Good day, and thank you for standing by, and welcome to Nautilus Q2 2024 Ernest Conference call. At this time, all participants are in listen-only mode. Happens to speaker's presentation, they'll be a question and answer session. To ask a question during the session, you'll need to press star 1-1 on your telephone. You 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.

Operator: After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You will then hear an automated message advising that your hand is raised.

Speaker Change: Good day and thank you for standing by and welcome to the Nautilus Q2 2024 Earnings Conference 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.

Speaker Change: To ask a question during the session, you'll need to press star 11 on your telephone. You then hear an automated message advising your hand is raised.

Celia Nares: To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded I would now like to hand the conference over to your speaker today, Jiayuan Yi, Investor Relations. Please go ahead

Operator: To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Fiyani Vest Relations. Please go ahead.

Operator: I would now like to hand the conference over to your speaker today.

Operator: See you on the best relations. Please go ahead. Thank you.

Fiyani Vest Relations: Thank you. Earlier today, Nautilus released financial results for the quarter ended June 30, 2024. If you haven't received this news release, or if you'd like to be added to the company's distribution list, please send an email to InvestorRelations at Nautilus.by. Joining me today from Nautilus are Sujal Patel, co-founder and CEO, Parag Mallick, co-founder and chief scientist, and Anna Mowry, chief financial officer. Before we begin, I'd like to remind you that management will make statements during this call that are forward-looking within the meaning of the federal security clause. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated.

Operator: Earlier today, Nautilus released financial results for the quarter ended June 30, 2024.

Sujal M. Patel: Additional information regarding these risks and uncertainties appears in the section entitled Board Looking Statements in the press release Nautilus issued today. Except as required by law, Nautilus disclaims any intention or obligation to update or revise any financial or product pipeline projection or other forward-looking statements, whether because of new information, future events, or otherwise. This conference call contains time-sensitive information and is accurate only as of the live broadcast, July 30, 2024. With that, I'll turn the call over to Sujal.

Speaker Change: Thank you.

Speaker Change: Earlier today, Nautilus released financial results for the quarter ended June 30, 2024.

Operator: If you haven't received this news release or if you'd like to be added to the company's distribution list, please send an email to investor relations at Nautilus.byl.

Speaker Change: If you haven't received this news release, or if you'd like to be added to the company's distribution list, please send an email to InvestorRelations at Nautilus.bio.

Operator: Joining you today from Nautilus are Susual Patel, co-founder and CEO, Frog Malik, co-founder and Chief Scientist, and Anna Mallory, Chief Financial Officer.

Speaker Change: Joining me today from Nautilus are Sujal Patel, co-founder and CEO , Parag Mallick, co-founder and chief scientist, and Anna Mowry, chief financial officer.

Sujal Patel: Before we begin, I'd like to remind you that management will make statements during the calls that are forward-looking within the meaning of a federal security clause. These statements involve material risks and uncertainties that could cause 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" in the press release Nautilus issued today. Except that, as required by law, Nautilus explains any intention or obligation to update or revise any financial or product pipeline projections for other forward-looking statements, whether because of new information, future events, or otherwise.

Speaker Change: Before we begin, I'd like to remind you that management will make statements during this call that are forward-looking within the meaning of the federal security clause.

Speaker Change: These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated.

Speaker Change: Additional information regarding these risks and uncertainties appears in the section entitled forward-looking statements in the press release Nautilus issued today.

Speaker Change: Except as required by law, Nautilus disclaims any intention or obligation to update or revise any financial or product pipeline projections or other forward-looking statements, whether because of new information, future events, or otherwise.

Operator: This conference call contains time-sensitive information and is accurate only on the live broadcast July 30, 2024.

Speaker Change: This conference call contains time-sensitive information and is accurate only as of the live broadcast, July 30, 2024.

Sujal Patel: With that, I'll turn the call over to Susual.

Sujal Patel: Thanks, Jiong, and welcome to everyone joining our Q2-2024 earnings call. The update that Parag, Anna, and I will be sharing with you today is due to the great work of our teams in the Bay Area, Seattle, and San Diego. My thanks go out to them for their continued progress against our key scientific and business objectives. I look forward to the day that their work is in the hands of researchers who leverage our platform to explore important biological questions once thought unanswerable. The team remains focused on both our development milestones and commercialization goals. Through these and other efforts, we remain motivated by our purpose to revolutionize proteomics in the name of improving the lives and health of millions of people around the world.

Sujal M. Patel: Thanks, Jian, and welcome to everyone joining our Q2 2024 Earnings Call. The update that Parag, Anna, and I will be sharing with you today is due to the great work of our teams in the Bay Area, Seattle, and San Diego. My thanks go out to them for their continued progress against our key scientific and business objectives. I look forward to the day when their work is in the hands of researchers who will leverage our platform to explore important biological questions once thought unethical.

Speaker Change: With that, I'll turn the call over to Sujal.

Sujal M. Patel: Thanks, Jian, and welcome to everyone joining our Q2 2024 earnings call.

Sujal M. Patel: The update that Parag, Anna, and I will be sharing with you today is due to the great work of our teams in the Bay Area, Seattle, and San Diego. My thanks go out to them for their continued progress against our key scientific and business objectives.

Sujal M. Patel: I look forward to the day that their work is in the hands of researchers who will leverage our platform to explore important biological questions once thought unanswerable.

Sujal M. Patel: The team remains focused on both our development milestones and commercialization goals. Through these and other efforts, we remain motivated by our purpose to revolutionize proteomics in the name of improving the lives and health of millions of people around the world. Our entire team is motivated by this goal, fully aligned, and committed to doing what it takes to make this a reality.

Sujal M. Patel: The team remains focused on both our development milestones and commercialization goals.

Sujal M. Patel: Through these and other efforts, we remain motivated by our purpose to revolutionize proteomics in the name of improving the lives and health of millions of people around the world. Our entire team is motivated by this goal, fully aligned, and committed to doing what it takes to make this a reality.

Sujal Patel: Our entire team is motivated by this goal, fully aligned and committed to doing what it takes to make this a reality. As you've heard me say on previous calls, to deliver a range of long-disgust and long-desired improvements in human health, we believe biomedical research needs a dramatic acceleration in targeted identification in therapeutic development. We believe we are pioneering a fundamentally new approach that holds the potential to overcome the limitations of traditional and peptide-based analysis methods and to unlock the value of the proteo, both in targeted proteo from analysis and broad-scale discovery. Something we continue to view is one of the most significant untapped opportunities in biology to this.

Sujal M. Patel: As you've heard me say on previous calls, to deliver a range of long-discussed and long-desired improvements in human health, we believe biomedical research needs a dramatic acceleration in targeted identification and therapeutic development. We believe we are pioneering a fundamentally new approach that holds the potential to overcome the limitations of traditional and peptide-based analysis methods and to unlock the value of the proteome, both in targeted proteoform analysis and broad-scale discovery, something we continue to view as one of the most significant untapped opportunities in biology today.

Sujal M. Patel: As you've heard me say on previous calls, to deliver a range of long-discussed and long-desired improvements in human health, we believe biomedical research needs a dramatic acceleration in targeted identification and therapeutic development.

Sujal M. Patel: We believe we are pioneering a fundamentally new approach that holds the potential to overcome the limitations of traditional and peptide-based analysis methods, and to unlock the value of the proteome, both in targeted proteoform analysis and broad-scale discovery.

Sujal M. Patel: Something we continue to view as one of the most significant untapped opportunities in biology today.

Sujal Patel: As you'll hear from Parag and a few moments, Ken O'Walls are enthusiastic about the data that we shared at this year's US Hubo conference. In fact, several have begun to discuss with us the specific initiatives against which they plan to apply our platform. In Q2, we saw continued progress against core development goals for each of the components of our platform, and I look forward to additional progress toward commercial launch in 2025.

Sujal M. Patel: As you'll hear from Parag in a few moments, KOLs are enthusiastic about the data that we shared at this year's U.S. HUPO conference. In fact, several have begun to discuss with us the specific initiatives against which they plan to apply our plan.

Sujal M. Patel: As you'll hear from Parag in a few moments, KOLs are enthusiastic about the data that we shared at this year's U.S. HUPO conference. In fact, several have begun to discuss with us the specific initiatives against which they plan to apply our platform.

Sujal M. Patel: In Q2, we saw continued progress against core development goals for each of the components of our platform, and I look forward to additional progress toward commercial launch in 2025. For a more detailed R&D update, let me now turn the call over to Parag.

Speaker Change: In Q2, we saw continued progress against core development goals for each of the components of our platform, and I look forward to additional progress toward commercial launch in 2025.

Parag Mallick: For a more detailed R&D update, let me now turn the call over to Parag.

Speaker Change: For a more detailed R&D update, let me now turn the call over to Parag.

Parag Mallick: Parag? Thanks, Sujal. You may remember that during our last call, I reported on the promising data we released at US Hubo, late in Q1. Among other things, we shared how, by exploiting the core capability of our platform to iteratively probe individual protein molecules, we were able to measure 32 distinct tau proteiforms from control samples. We also demonstrated the ability to perform measurements of enriched cell lysates. These results are the foundation of future assays which will be accessible to the broader biological community, enabling more detailed investigation into molecular mechanisms of diseases like Alzheimer's and other talopathy.

Parag Mallick: Thanks, Sujal. You may remember that during our last call, I reported on the promising data we released at USHUPO late in Q1. Among other things, we shared how, by exploiting the core capability of our platform to iteratively probe individual protein molecules, we were able to measure 32 distinct tau proteoforms from control samples. We also demonstrated the ability to perform measurements of enriched cell lysate.

Speaker Change: Parag?

Parag Mallick: Thanks Sujal. You may remember that during our last call, I reported on the promising data we released at USHUPO late in Q1.

Parag Mallick: Among other things, we shared how by exploiting the core capability of our platform to iteratively probe individual protein molecules, we were able to measure 32 distinct tau proteoforms from control samples.

Parag Mallick: We also demonstrated the ability to perform measurements of enriched cell lysates.

Parag Mallick: These results are the foundation of future assays, which will be accessible to the broader biological community, enabling more detailed investigation into molecular mechanisms of diseases like Alzheimer's and other tauopathies. In addition, they suggest new frontiers in diagnosis. As proteoforms are not yet widely discussed outside of the proteomics research community, let me take just a moment to define what they are and why they're important. The term proteoform was introduced by Lloyd-Smith and Neal Kelleher in 2013 to, quote, be used to designate all of the different molecular forms in which the protein product of a single gene can be found, including changes due to genetic variations, alternatively splice End quote.

Parag Mallick: These results are the foundation of future assays, which will be accessible to the broader biological community, enabling more detailed investigation into molecular mechanisms of diseases like Alzheimer's and other telepathies.

Parag Mallick: In addition, they suggest new frontiers in diagnostics.

Parag Mallick: In addition, they suggest new frontiers in diagnostics.

Parag Mallick: As proteiforms are not yet widely discussed outside of the proteomics research community, let me take just a moment to define what they are and why they're important. The term proteiform was introduced by Lloyd Smith and Neil Keller in 2013 to, quote, be used to designate all of the different molecular forms in which the protein product of a single gene can be found, including changes due to genetic variations, alternatively spliced RNA transcripts, and post-translational modifications, end quote. We know from examples like signaling molecules, cycling dependent kinases, oncogenes, histones, et cetera, that what makes proteiforms an important driver of biological outcome is not just that a protein has a mutation, a splice variant, or a post-translational modification.

Speaker Change: As proteoforms are not yet widely discussed outside of the proteomics research community, let me take just a moment to define what they are and why they're important.

Speaker Change: The term proteoform was introduced by Lloyd-Smith and Neal Kelleher in 2013 to, quote, be used to designate all of the different molecular forms in which the protein product of a single gene can be found.

Speaker Change: including changes due to genetic variations, alternatively spliced RNA transcripts, and post-translational modifications." End quote.

Parag Mallick: We know from examples like signaling molecules, cyclin-dependent kinases, oncogenes, histones, etc., that what makes proteoforms an important driver of biological outcome is not just that a protein has a mutation, a splice variant, or a post-translational modification. What matters from the perspective of biological relevance is the combination and pattern of those modifications. The result is an exponentiation in the complexity of proteins actions that have tremendous potential to alter the behavior of a biological system.

Speaker Change: We know from examples like signaling molecules,

Speaker Change: cyclin-dependent kinases, oncogenes, histones, etc., that what makes proteoforms an important driver of biological outcome is not just that a protein has a mutation, a splice variant, or a post-translational modification.

Parag Mallick: What matters from the perspective of biological relevance is the combination and pattern of those modifications. The result is an exponentiation and complexity of protein's actions that have tremendous potential to alter the behavior of a biological system. Researchers seeking insight into the role that proteiforms may play in, for example, the progression of Alzheimer's or other neurologic diseases, have been limited by a lack of robust and accessible technologies to measure proteiforms at scale. Approaches such as Western blots and digital ELISA assays can only measure one post-translational modification at a time, typically as a bulk measurement, averaging across collections molecules.

Speaker Change: What matters, from the perspective of biological relevance, is the combination and pattern of those modifications.

Speaker Change: The result is an exponentiation in complexity of protein's actions that have tremendous potential to alter the behavior of a biological system.

Parag Mallick: Researchers seeking insight into the role that proteoforms may play in, for example, the progression of Alzheimer's or other neurologic diseases have been limited by a lack of robust and accessible technologies to measure proteoforms at scale. Approaches such as western blots and digital ELISA assays can only measure one post-translational modification at a time, typically as a bulk measurement averaging across collections of molecules.

Speaker Change: Researchers seeking insight into the role that proteoforms may play in, for example, the progression of Alzheimer's or other neurologic diseases, have been limited by a lack of robust and accessible technologies to measure proteoforms at scale.

Speaker Change: Approaches such as Western VLOTS and digital ELISA assays can only measure one post-translational modification at a time, typically as a bulk measurement averaging across collections of molecules.

Parag Mallick: When there are potentially millions of patterns of modifications across billions of protein molecules in a sample, being able to measure one modification yields a very limited biological insight. Other technologies such as bottom-up shotgun master trometry, or, frankly, any peptide-centric technology, are simply unable to measure proteoforms as they cannot know that multiple alterations were present on the given protein molecule. These methods also cannot measure modifications at low concentrations. In general, measuring protein presence at low concentration is hard; measuring particular variance of proteins that are at even lower concentrations is exponentially harder. But it may be that these low abundance proteins in proteoforms hold the keys to unlocking new, more effective drugs across a range of indications.

Parag Mallick: When there are potentially millions of patterns of modifications across billions of protein molecules in a sample, being able to measure one modification yields a very limited biological insight; other technologies, such as bottom-up shotgun mass spectrometry or frankly any peptide-centric technology, are simply unable to measure proteoforms, as they cannot know that multiple alterations were present on a given protein molecule. These methods also cannot measure modifications at low concentrations

Speaker Change: When there are potentially millions of patterns of modifications across billions of protein molecules in a sample, being able to measure one modification yields a very limited biological insight.

Speaker Change: Other technologies, such as bottom-up shotgun mass spectrometry, or frankly, any peptide-centric technology.

Speaker Change: are simply unable to measure proteoforms, as they cannot know that multiple alterations were present on a given protein molecule.

Speaker Change: These methods also cannot measure modifications at low concentrations.

Parag Mallick: In general, measuring protein presence at low concentrations is hard. Measuring particular variants of proteins that are at even lower concentrations is exponentially harder. But it may be that these low abundance proteins and proteoforms hold the keys to unlocking new, more effective drugs across a range of indications. To date, the majority of proteiform studies have been performed using top-down mass spectrometry.

Speaker Change: In general, measuring protein presence at low concentration is hard. Measuring particular variants of proteins that are at even lower concentrations is exponentially harder.

Speaker Change: But it may be that these low abundance proteins and proteoforms hold the keys to unlocking new more effective drugs across a range of indications.

Parag Mallick: To date, the majority of proteoform studies have been performed using top-down mass spectrometry. This technology is the basis of ongoing efforts to build a proteoform atlas. However, though powerful, this technology is extremely complex and unlikely to be able to be broadly accessible to the wider biological community.

Speaker Change: To date, the majority of proteoform studies have been performed using top-down mass spectrometry.

Parag Mallick: This technology is the basis of ongoing efforts to build a proteoform atlas. However, though powerful, this technology is extremely complex and unlikely to be able to be broadly accessible to the wider biological community. The limitations in existing technologies have prevented meaningful analysis of what is believed to be an extraordinarily complex interplay of diverse proteoforms.

Speaker Change: This technology is the basis of ongoing efforts to build a proteoform atlas. However, though powerful, this technology is extremely complex and unlikely to be able to be broadly accessible to the wider biological community.

Parag Mallick: The limitations in existing technologies have prevented meaningful analysis of what is believed to be an extraordinarily complex interplay of diverse proteoforms. This gap has inhibited meaningful understanding of disease mechanisms and drug actions. In addition, examples like troponin and prostate-specific antigen, PSA, have shown how proteoforms can serve as powerful biomarkers. Creating a technology to see these proteoform patterns and measure their relationship to one another has the potential to hugely advance biomarker identification, drug discovery and development, and precision medicine. We believe that the Nautilus platform holds precisely that potential. The single molecule capabilities of the Nautilus platform, combined with the system's dynamic range, sensitivity, and ease of use, enable researchers to reveal and leverage extraordinarily valuable proteoform data that has never been available.

Speaker Change: The limitations in existing technologies have prevented meaningful analysis of what is believed to be an extraordinarily complex interplay of diverse proteoforms.

Parag Mallick: This gap has inhibited meaningful understanding of disease mechanisms and drug actions. In addition, examples like troponin and prostate-specific antigen, PSA, have shown how proteoforms can serve as powerful biomarkers. Creating a technology to see these proteoform patterns and measure their relationship to one another has the potential to hugely advance biomarker identification, drug discovery, and development, and precision medicine. We believe that the Nautilus platform holds precisely that potential. The single-molecule capabilities of the Nautilus platform, combined with the system's dynamic range, sensitivity, and ease of use, enable researchers to reveal and leverage extraordinarily valuable proteoform data that has never been available.

Speaker Change: This gap has inhibited meaningful understanding of disease mechanisms and drug actions. In addition, examples like troponin and prostate-specific antigen, PSA, have shown how proteoforms can serve as powerful biomarkers.

Speaker Change: Creating a technology to see these proteoform patterns and measure their relationship to one another has the potential to hugely advance biomarker identification, drug discovery and development, and precision medicine.

Speaker Change: We believe that the Nautilus platform holds precisely that potential.

Speaker Change: The single-molecule capabilities of the Nautilus platform, combined with the system's dynamic range, sensitivity, and ease of use, enable researchers to reveal and leverage extraordinarily valuable proteoform data that has never been available.

Parag Mallick: In concert, with our team's continued focus on the platform's broad-scale discovery capabilities, we're concurrently creating proteoform assays that quantify at scale the functional proteoforms present in a sample. Tissue and cell lysates initially with blood and CSF to follow, in a way that has not been possible with the bulk analysis methodologies of the past. Since we announced our preliminary proteoform data at US Hoopo, we've heightened our focus on proteoform development activities. Primarily in response to, as you'll hear from Sujil in just a moment, an enthusiastic reaction to the data from the research community. Specifically, based on the experimental work done in Q2, we have been able to reproducibly quantify mixers of proteoforms, improve our assay performance, and successfully extract and rich and detect proteoforms from humanized mouse brain.

Parag Mallick: In concert with our team's continued focus on the platform's broad-scale discovery capabilities, we're concurrently creating proteoform assays that quantify, at scale, the functional proteoforms present in a sample, tissue and cell lysates initially, with blood and CSF to follow, in a way that has not been possible with the bulk analysis methodologies of the past. Since we announced our preliminary proteoform data at USHUPO, we have intensified our focus on proteoform development activities, primarily in response to, as you'll hear from Sujal in just a moment, an enthusiastic reaction to the data from the research community.

Speaker Change: In concert with our team's continued focus on the platform's broad-scale discovery capabilities, we're concurrently creating proteoform assays that quantify, at scale, the functional proteoforms present in a sample.

Speaker Change: tissue and cell life states initially with blood and CSF to follow. In a way that has not been possible with the bulk analysis methodologies of the past.

Speaker Change: Since we announced our preliminary proteoform data at USHUPO, we have heightened our focus on proteoform development activities, primarily in response to, as you'll hear from Sujal in just a moment, an enthusiastic reaction to the data from the research community.

Parag Mallick: Specifically, based on the experimental work done in Q2, we have been able to reproducibly quantify mixtures of proteoforms, improve our assay performance, and successfully extract, enrich, and detect proteoforms from humanized mouse brains. We have also demonstrated that those patterns of proteiform abundances can be shifted with biochemical perturbations, such as by kinases and phosphates.

Sujal M. Patel: Specifically, based on the experimental work done in Q2, we have been able to reproducibly quantify mixtures of proteoforms, improve our assay performance, and successfully extract, enrich, and detect proteoforms from humanized mouse brain.

Parag Mallick: We have also demonstrated that those patterns of proteoform abundances can be shifted with biochemical perturbations, such as by kinases and facetases. This latest data demonstrates the platform can be applied to important biological questions in relevant biological samples.

Sujal M. Patel: We have also demonstrated that those patterns of proteoform abundances can be shifted with biochemical perturbations, such as by kinases and phosphatases.

Parag Mallick: This latest data demonstrates the platform can be applied to important biological questions in relevant biological disciplines. We are very excited about our progress on this front and look forward to updating the community further at the Hupa World Congress in late October. As I wrap up, I want to emphasize the fact that any advances made to our core platform accrue value for both our targeted proteoform detection capabilities and our broad-scale discovery capabilities. Both modes of the platform rely upon single-molecule library preparation, nanopattern chips supporting superpoisson deposition of that library, iterative probing of individual molecules with fluorescently-labeled affinity reagents, and machine learning software to infer molecule identities and

Sujal M. Patel: This latest data demonstrates that the platform can be applied to important biological questions in relevant biological samples.

Parag Mallick: We are very excited about our progress on this front and look forward to updating the community further at the Hoopo World Congress in late October. As I wrap up, I want to emphasize the fact that any advances made to our core platform, a crew value to both our targeted proteoform detection capabilities and our broad scale discovery capabilities.

Sujal M. Patel: We are very excited about our progress on this front and look forward to updating the community further at the Hupa World Congress in late October .

Sujal M. Patel: As I wrap up, I want to emphasize the fact that any advances made to our core platform accrue value to both our targeted proteoform detection capabilities and our broad-scale discovery capabilities.

Parag Mallick: I.N. Both modes of the platform rely upon a single molecule library preparation, nanopattern chips supporting superpoisson deposition of that library, iterative probing of individual molecules with fluorescently labeled affinity reagents, and machine learning software to infer molecule identities and quantities. In Q2, in addition to meaningful advances in our proteiform assay capabilities, we continued to make progress against our core and broad-scale development goals. We remained focused on increasing scale, stability, and reproducibility across our consumables, assay, and platform, and continued to see meaningful gains along those and related areas. In particular, this quarter saw the successful execution of the largest scale experiments we've performed to date.

Sujal M. Patel: Both modes of the platform rely upon a single-molecule library preparation, nanopattern chips supporting superpoisson deposition of that library, iterative probing of individual molecules with fluorescently labeled affinity reagents, and machine learning software to infer molecule identities and quantities.

Parag Mallick: In Q2, in addition to meaningful advances in our proteoform assay capabilities, we continued to make progress against our core and broad-scale development goals. We remain focused on increasing scale, stability, and reproducibility across our consumables, assay, and platform and continue to see meaningful gains in those and related areas. In particular, this quarter saw the successful execution of the largest-scale experiments we've performed to date. This progress is in lockstep with advancing the reliability, quality, and customer readiness of our instruments and software. With that, I'll turn the call back to Sujal.

Sujal M. Patel: In Q2, in addition to meaningful advances in our proteoform assay capabilities, we continued to make progress against our core and broad-scale development goals.

Sujal M. Patel: We remain focused on increasing scale, stability, and reproducibility across our consumables, assay, and platform, and continue to see meaningful gains along those and related areas. In particular, this quarter saw the successful execution of the largest-scale experiments we've performed to date.

Parag Mallick: This progress is in lockstep with advancing the reliability, quality, and customer readiness of our instrument and software.

Sujal M. Patel: This progress is in lockstep with advancing the reliability, quality, and customer readiness of our instrument and software.

Sujal Patel: With that, I'll turn the call back to Sujil.

Sujal Patel: Thanks for the update, Parag. I could not agree more with Parag's enthusiasm for our progress in detecting proteiforms and the substantial impact we could have, initially with tau, on the efficiency and cost-effectiveness of biomarker discovery and drug development in Alzheimer's and other neurodegenerative diseases. This progress represents a perfect example of our platform's unique ability to and our continued focus on enabling both targeted proteiform analysis and broad-scale discovery proteomics. That understanding of the platform's dual value is shared by others. Extensive voices of the customer work done since US Hubo, during which we previewed our latest data, shows enthusiasm for targeted proteiform analysis from both academic researchers and pharma for use in drug targeting and drug discovery efforts.

Sujal M. Patel: Thanks for the update, Parag. I could not agree more with Parag's enthusiasm for our progress in detecting proteoforms and the substantial impact we could have, initially with tau, on the efficiency and cost-effectiveness of biomarker discovery and drug development in Alzheimer's and other neurodegenerative diseases. This progress represents a perfect example of our platform's unique ability to, and our continued focus on, enabling both targeted proteoform analysis and broad-scale discovery proteomics. We hope that this understanding of the platform's dual value is shared by others. Extensive voice-of-the-customer work done since USHUPO, during which we presented our latest data, shows enthusiasm for targeted proteoform analysis from both academic researchers and pharma for use in drug targeting and drug discovery.

Sujal M. Patel: With that, I'll turn the call back to Sujal.

Sujal M. Patel: Thanks for the update, Parag. I could not agree more with Parag's enthusiasm for our progress in detecting proteoforms and the substantial impact we could have, initially with tau, on the efficiency and cost-effectiveness of biomarker discovery and drug development in Alzheimer's and other neurodegenerative diseases.

Speaker Change: This progress represents a perfect example of our platform's unique ability to, and our continued focus on, enabling both targeted proteome analysis and broad-scale discovery proteomics.

Speaker Change: That understanding of the platform's dual value is shared by others.

Speaker Change: Extensive voice-of-the-customer work done since USHUPO, during which we previewed our latest data, shows enthusiasm for targeted proteoform analysis from both academic researchers and pharma for use in drug targeting and drug discovery efforts.

Sujal Patel: In fact, one high-profile KOL said as part of our VLC interviews that he believes building a reference database containing millions of proteiforms will transform biological research and healthcare. We share his and others' enthusiasm about the potential here and are energized to generate and share additional high-value data.

Sujal M. Patel: In fact, one high-profile KOL said, as part of our DOC interviews, that he believes building a reference database containing millions of proteoforms will transform biological research and health. We share his and others' enthusiasm about the potential here and are energized to generate and share additional high-value data. As Parag mentioned, our next significant opportunity to educate the community about the platform and our progression towards commercial availability will occur when Nautilus participates as a top-level sponsor of this year's Hupo World Congress, October 20th through 24th in Dresden, Germany.

Speaker Change: In fact, one high-profile KOL said, as part of our DOC interviews, that he believes building a reference database containing millions of proteoforms will transform biological research and healthcare.

Speaker Change: We share his and others enthusiasm about the potential here and are energized to generate and share additional high-value data.

Sujal Patel: As Parag mentioned, our next significant opportunity to educate the community about the platform and our progression towards commercial availability will occur when Nautilus participates as a top-level sponsor of this year's Hubo World Congress, October 20th through 24th in Dresden, Germany. As we've previously discussed, my management team and I, in fact the entire Nautilus team, continue to proactively manage our resources to maximize our cash runway while balancing that with investments to drive our scientific progress forward. As of the end of last quarter, we still hold out our books over half of the cash that we've raised in our seven and a half anticipated 2024 run rate. We expect to be resourced through commercial launch.

Speaker Change: As Parag mentioned, our next significant opportunity to educate the community about the platform and our progression towards commercial availability will occur when Nautilus participates as a top-level sponsor of this year's Hupo World Congress, October 20-24 in Dresden, Germany.

Sujal M. Patel: As we've previously discussed, my management team and I, in fact, the entire Nautilus team, continue to proactively manage our resources to maximize our cash runway while balancing that with investments to drive our scientific progress forward. As of the end of last quarter, we still hold on our books over half of the cash that we've raised in our seven and a half years as a business.

Speaker Change: As we've previously discussed, my management team and I, in fact the entire Nautilus team, continue to proactively manage our resources to maximize our cash runway while balancing that with investments to drive our scientific progress forward.

Speaker Change: As of the end of last quarter, we still hold on our books over half of the cash that we've raised in our seven and a half years as a business. And at our anticipated 2024 run rate, we expect to be resourced through commercial launch.

Anna Mowry: And at our anticipated 2024 run rate, we expect to be resourced through commercial loss. For more on that and other financials, let me hand the call over to Anna.

Anna Mowry: For more on that and other financials, let me hand the call over to Anna. Anna? Thanks, Siegel. Total operating expenses for the second quarter of 2024 were $20.8 million, an increase of $1.8 million compared to the previous year. This 9% increase in operating expenses year over year was driven primarily by continued investment in personnel and their activities towards the development of our platform, as well as investment in personnel and services engaged in ensuring our business operations. Research and development expenses in the second quarter of 2024 were $12.4 million, compared to $11.9 million in the prior year period.

Speaker Change: For more on that and other financials, let me hand the call over to Anna.

Anna Mowry: Thanks, Sujal. Total operating expenses for the second quarter of 2024 were $20.8 million, up $1.8 million compared to the second quarter of 2023 and $0.8 million below the previous quarter. This 9% increase in operating expenses year over year was driven primarily by continued investment in personnel and their activities towards the development of our platform, as well as investment in personnel and services engaged in maturing our business operations. Research and development expenses in the second quarter of 2024 were $12.4 million compared to $11.9 million in the prior year period.

Anna Mowry: General and administrative expenses were $8.4 million in the second quarter of 2024, compared to $7.1 million in the prior year period. Overall net loss for the second quarter of 2024 was $18.0 million, compared to $15.8 million in the prior year period.

Speaker Change: Anna?

Anna Mowry: Thanks, Sujal.

Anna Mowry: Total operating expenses for the second quarter of 2024 were $20.8 million, up $1.8 million compared to the second quarter of 2023, and $0.8 million below last quarter.

Anna Mowry: This 9% increase in operating expenses year-over-year was driven primarily by continued investment in personnel and their activities towards the development of our platform, as well as investment in personnel and services engaged in maturing our business operations.

Anna Mowry: Research and development expenses in the second quarter of 2024 were $12.4 million compared to $11.9 million in the prior year period.

Anna Mowry: General and administrative expenses were $8.4 million in the second quarter of 2024, compared to $7.1 million in the prior year period. Overall, net loss for the second quarter of 2024 was $18.0 million, compared to $15.8 million in the prior year period. Turning to our balance sheet, we ended the quarter with approximately $233 million in cash, cash equivalents, and investments, compared to $248 million at the end of last quarter. As our Q2 results show, we continue to tightly manage our spend. Given our operating expenses in the first half of 2024, combined with our spend expectations in the second half, we anticipate our total operating expense growth for the full year to be between 15 and 20 percent, well below our previous guidance of 25 percent.

Anna Mowry: General and administrative expenses were $8.4 million in the second quarter of 2024, compared to $7.1 million in the prior year period.

Anna Mowry: Overall net loss for the second quarter of 2024 was $18.0 million compared to $15.8 million in the prior year period.

Anna Mowry: Turning to our balance sheet, we ended the quarter with approximately $233 million in cash, cash equivalents, and investments, compared to $248 million at the end of last quarter. As our Q2 results show, we continue to tightly manage our spend. Given our operating expenses in the first half of 2024, combined with our spend expectations in the second half, we anticipate our total operating expense growth for the full year to be between 15% and 20%, well below our previous guidance of 25%. Importantly, we remain committed to disciplined cash management and running an efficient organization as we execute our strategy to launch our revolutionary proteome analysis platform. With that, I'll turn it back to Sujal.

Anna Mowry: Turning to our balance sheet, we ended the quarter with approximately $233 million in cash, cash equivalents, and investments, compared to $248 million at the end of last quarter.

Anna Mowry: As our Q2 results show, we continue to tightly manage our spend.

Anna Mowry: Given our operating expenses in the first half of 2024, combined with our spend expectations in the second half, we anticipate our total operating expense growth for the full year to be between 15 and 20 percent, well below our previous guidance of 25 percent.

Anna Mowry: Importantly, we remain committed to disciplined cash management and running an efficient organization as we execute our strategy to launch our revolutionary proteome analysis platform.

Anna Mowry: Importantly, we remain committed to discipline cash management and running an efficient organization as we execute our strategy to launch our revolutionary proteome analysis platform. With that, I'll turn it back to Sujal.

Sujal Patel: With that, I'll turn it back to Sujal. Thanks, Anna. We're excited about what lies ahead for Nautilus, and the difference we believe our platform can make.

Sujal M. Patel: Thanks, Anna. We're excited about what lies ahead for Nautilus and the difference we believe our platform can make. I'm grateful to our team, our investors, our strategic partners, and our research collaborators for joining us on this journey to revolutionize proteomics and empower the scientific community in ways never thought possible. We made good progress in Q2 and look forward to building on those successes as we move through the remainder of 2024 on our way to our expected commercial launch in 2025 and beyond. With that, I'm happy to open the call up for questions. Operator?

Sujal M. Patel: Thanks, Anna.

Sujal M. Patel: We're excited about what lies ahead for Nautilus and the difference we believe our platform can make.

Sujal Patel: I'm grateful to our team, our investors, our strategic partners, and our research collaborators for joining us on this journey to revolutionize proteomics and empower the scientific community in ways never thought possible. We made good progress in Q2 and look forward to building on those successes as we move through the remainder of 2024 on our way to our expected commercial launch in 2025 and beyond.

Sujal M. Patel: I'm grateful to our team, our investors, our strategic partners, and our research collaborators for joining us on this journey to revolutionize proteomics and empower the scientific community in ways never thought possible.

Sujal M. Patel: We made good progress in Q2 and look forward to building on those successes as we move through the remainder of 2024 on our way to our expected commercial launch in 2025 and beyond.

Sujal Patel: With that, I'm happy to open the call up for questions.

Operator: And thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by.

Operator: Operator? And thank you. As a reminder to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by with Compala Q&A roster, and we ask that you limit yourself to one question, one follow-up. Again, that's one question, one follow-up. And one moment for our first question.

Sujal M. Patel: With that, I'm happy to open the call up for questions.

Sujal M. Patel: Operator.

Speaker Change: And thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by. We'll compile the Q&A roster. And we ask that you limit yourself to one question, one follow-up. Again, that's one question, one follow-up.

Operator: We'll compile the Q&A roster, and we ask that you limit yourself to one question and one follow-up. Again, that's one question and one follow-up. And one moment for our first question. And our first question comes from Subbu Nambi from Guggenheim Securities. Your line is now open. Good morning, this is Rikki Levitas on behalf of CBN via Guggenheim.

Speaker Change: And one moment for our first question.

Ricky Levittis: And our first question comes from Sibu Nambi from Guggenheim Securities. Your line is now open. Good morning.

Speaker Change: And our first question comes from Sabu Nambi from Guggenheim Securities. Your line is now open.

Ricky Levittis: This is Ricky Levittis on Proceed Union, the at Guggenheim. Thanks for taking our question. Are you able to provide any further specificity on the launch timeline other than calendar year 2025? And if not, when would you be able to provide that insight? Is there a specific milestone that you might be working to achieve?

Rikki Levitas: Thanks for taking our question. Are you able to provide any further specificity on the launch timeline, other than calendar year 2025? And if not, when would you be able to provide that insight?

Speaker Change: Good morning, this is Rikki Levitas on perceived unity at Guggenheim. Thanks for taking our question.

Sujal M. Patel: Is there a specific milestone that you might be looking to achieve? And then I have a follow-up. Thanks, Ricky. This is Sujal.

Rikki Levitas: Are you able to provide any further specificity on the launch timeline other than calendar year 2025? And if not, when would you be able to provide that insight? Is there a specific milestone that you might be looking to achieve? And then I have a follow up.

Sujal Patel: And then I have a follow-up. Thanks, Ricky.

Sujal M. Patel: Maybe I'll take this one first. So when you look at the core things that are necessary for the launch that we've been describing for 2025, it's a continued set of development activities related to bringing all of our platform components together and building the 300 or so reagents that we need, which are the multi-affinity probes and our labels that we need to be able to launch. And being able to provide the information from each of the molecules on our chip to be able to detect exactly what protein they are, which gene encoder protein they are. We continue to believe that 2025 is still an appropriate time for the launch.

Sujal Patel: Sibu Nambi, I'll take this one first. So I think that when you look at the core things that are necessary for the launch that we've been describing for 2025, it's a continued set of development activities related to bringing all of our platform components together, and building the 300 or so reagents that we need, which are the multi-ethnicity probes and our labels that we need to be able to provide the information from each of the molecules on our chip to be able to detect exactly what protein they are, which gene they could have protein they are.

Rikki Levitas: Thanks, Ricky. This is Sujal. Maybe I'll take this one first.

Sajal: So, I think that, you know, when you look at the core...

Speaker Change: that are necessary for the launch that we've been describing for 2025. It's a continued set of development activities related to bringing all of our platform components together and building the 300 or so reagents that we need. I'm sure the.

Speaker Change: [inaudible]

Sujal Patel: We continue to believe that 2025 is still an appropriate time for the launch. We've still got a number of development activities that we're working through. We still have a significant amount of effort that continues on reagent development, qualification, movement to our platform, and we are still in the process of putting all those things together. And so that's what I would say in terms of guidance for launch.

Sujal M. Patel: We've still got a number of development activities that we're working through. We still have a significant amount of effort that continues on reagent development, qualification, and movement to our platform. We are still in the process of putting all those things together.

Speaker Change: on Reagent Development, Qualification, Movement to our Platform, and we are still in the process of putting all those things together. And so that's what I would say in terms of guidance for launch.

Sujal M. Patel: And so that's what I would say in terms of guidance for launch. You asked the question around what the milestone would be where we'll provide more specificity. And because our system is not a system where five reagents detect five things, 10 detects 10, it's an exponential curve because of the data science behind how we detect what molecules are in the chip.

Sujal Patel: You asked the question around what the milestone would be where we'll provide more specificity. And I think that one of the things that I've mentioned for a number of quarters now is that there will be a milestone coming up where, at one of the Hoopo conferences or perhaps at another venue, we will bring data that shows the ability to measure, call it anywhere from 1000 proteins or more from cell lysate, meaning from a complex sample. And by the time that we're able to do that, the vast majority of our technology development has been completed; the reagents we have more than half of them to be able to get to that goal.

Speaker Change: You asked the question around what the milestone would be where we'll provide more specificity. And I think that, you know, one of the things that I've mentioned for a number of quarters now is that there will be a milestone coming up where at

Speaker Change: One of the Hoopoe conferences, or perhaps at another venue, we will bring data that shows the ability to measure

Speaker Change: Call it anywhere from 1,000 proteins or more from cell lysate, meaning from a complex sample. And by the time that we're able to do that, the vast majority of our technology development has been completed. The reagents, we have more than half of them to be able to get to that goal. And because our system is not a system where 5 reagents detects 5 things, 10 detects 10, it's an exponential curve.

Sujal Patel: And because our system is not a system where five reagents detect five things, 10 to 10, it's an exponential curve because of the data slides behind how we detect what molecules are in the chip. That's a point where we'll have much more specificity in terms of launch timing and in terms of specifications of our product, and so forth. Now we do anticipate that that milestone will come before our early access period, and then following an early access period of college, you know, six months or so, you'll have a product launch. So if you look at all of those, all those things, you could sort of back into the fact that, you know, when you look at what a launch time for 2025 is, is probably not the first half, but it still still looks good for us in terms of where we're at and where we need to get.

Sujal M. Patel: That's a point where we'll have much more specificity in terms of launch timing and in terms of specifications of our product and so forth. Now, we do anticipate that that milestone will come before our early access period, and then following an early access period of, call it, six months or so, you'll have a product launch. So, if you look at all of those things, you could sort of back into the fact that when you look at what the launch timing for 2025 is, it's probably not the first half, but it still looks good for us in terms of where we're at and where we need to get to.

Speaker Change: because of the data science behind how we detect what molecules are in the chip. That's a point where we'll have much more specificity in terms of launch timing and in terms of

Speaker Change: in terms of

Speaker Change: Unknown Executive, Carrie Mendivil, Anna Mowry

Speaker Change: What a launch time for 2025 is, is probably not the first half, but it still looks good for us in terms of where we're at and where we need to get to.

Sujal Patel: Thank you. Great.

Sujal M. Patel: Great, thanks. And then a follow-up on the early access launch. Are there any updates or additional color you could provide on what strategy you're looking at for that beta testing and what customers you'd be targeting? Thank you. Yeah, so this is Sujal.

Sujal Patel: So then follow up on the early access launch. Are there any updates or additional colors you could provide on what strategy you're looking at for that beta testing and what customers you'd be targeting? Thank you.

Speaker Change: Great, thanks. And then a follow up on the early access launch. Are there any updates or additional color you could provide on what strategy you're looking at for that beta testing and what customers you'd be targeting? Thank you.

Sujal Patel: Yeah, so this is Sujal. And when you look at our early access programs, our early access programs' goals are, first and foremost, to give customers who have notoriety in the proteomics world and customers who are proteomics-savvy early access to our platform so that they can generate unique and meaningful biological insight. And that biological insight has two goals.

Sujal M. Patel: When you look at our early access program, our early access program's goals are, first and foremost, to give customers who are not famous in the proteomics world and customers who are proteomics savvy early access to our platform so that they can generate unique and meaningful biological insight. And that biological insight has two goals. One is the value that we get out of it, publishing, bringing it to conferences, papers, abstracts, posters.

Speaker Change: Yeah, so this is Sujal. When you look at our Early Access Program, our Early Access Program's goals are, first and foremost, to give customers who

Speaker Change: are

Sujal M. Patel: who have notoriety in the proteomics world and customers who are proteomic savvy, early access to our platform so that they can generate unique and meaningful biological insight.

Operator: That value is really important to us because it provides the customer evidence that we need for the next stage of the business and for landing the first instrument deals and so forth. The second major activity that we want out of that early access program is really related to signing pre-orders for the instrument. And so when you think about those two goals, the types of customers that we will have in our early access program are very similar to the types of companies we're working with today in our collaboration.

Sujal Patel: One is the value that we get out of it: publishing, bringing into conferences, papers, abstracts, posters. That value really is important to us because it provides the customer evidence that we need for the next age of the business and for landing the first instrument deals and so forth.

Sujal M. Patel: And that biological insight has two goals. One is...

Sujal M. Patel: The value that we get out of it, publishing, bringing it to conferences, papers, abstracts, posters, that value really is important to us because it provides the customer evidence that we need for the next stage of the business and for landing the first instrument deals and so forth.

Sujal Patel: The second major activity that we want out of that early access program is really related to finding pre-orders for the instrument. And so when you think about those two goals, the types of customers that we will have in our early access program are very similar to the types of companies we're working with today on our collaboration. So it'll be pharmaceutical organizations like Genentech who's been working with as a collaborator for quite some time, and it will be academic and nonprofit research organizations, particularly those that are proteomics savvy and the key pain leaders in the proteomics world.

Sujal M. Patel: The second major activity that we want out of that Early Access Program is really related to signing pre-orders for the instrument. And so when you think about those two goals, the types of customers that we will have in our Early Access Program are very similar to the types of companies we're working with today on our collaboration. So it'll be pharmaceutical organizations like Genentech, who we've been working with as a collaborator for quite some time, and it will be academic and nonprofit research organizations, particularly those that are proteomics savvy and the key opinion leaders in the proteomics world. And then as well in there, you'll have some diagnostic types of applications.

Operator: So it'll be pharmaceutical organizations like Genentech, who we've been working with as a collaborator for quite some time, and it will be academic and nonprofit research organizations, particularly those that are proteomics savvy and key opinion leaders in the proteomics world. And then, as well, you'll have some diagnostic types of activities. And thank you.

Sujal Patel: And then as well in there, you'll have some diagnostic types of application.

Matt Sykes: And thank you. And one moment for our next question. And our next question comes from Matt Sykes from Goldman Sachs. The line is now open. Good morning. Thanks for taking my questions.

Operator: And one moment for our next question. And our next question comes from Matt Sykes from Goldman Sachs. Your line is now open.

Sujal M. Patel: And our next question comes from Matt Sykes from Goldman Sachs. Your line is now open.

Matthew Carlisle Sykes: Good morning, thanks for taking my questions. Maybe just first, on something that I don't think has been discussed in the last couple quarters, just the bioinformatics platform that's going to be attached to the Nautilus instrument. Just curious, given how unique and novel the data sets that you're providing, the proteoforms for scientists, could you maybe dig a little bit more into the bioinformatics platform and what that looks like? And have you worked with customers to make sure that they get reports and data that's easily understandable, just given, again, how novel the information is to them, given the... The Capabilities of the Instrument. Hi, this is Parag. I'll take the first, Crack.

Parag Mallick: Maybe just first on something that I don't think has been discussed in the last couple of quarters, just the bioinformatics platform that's going to be attached to the knowledge instrument. Just curious, given how unique and novel the data sets that you're providing the proteoforms for scientists are, could you just maybe dig a little bit more into the bioinformatics platform and what that looks like? And have you worked with customers to make sure that they get reports and data that's easily understandable, just given, again, how novel the information is to them, given the capabilities of the instrument.

Matthew Carlisle Sykes: Good morning. Thanks for taking my questions. Maybe just first on something that I don't think has been discussed in the last couple of quarters, just the bioinformatics platform.

Matthew Carlisle Sykes: that's going to be attached to the Nautilus instrument. Just curious, given how unique and novel the data sets that you're providing, the proteoforms for scientists are,

Speaker Change: Could you just maybe dig a little bit more into the bioinformatics platform and what that looks like and have you worked with customers to make sure that they get reports and data that's easily understandable just given, again, how novel the information is to them given the capabilities of the instrument?

Parag Mallick: Hi, this is Perag. I'll take the first crack. It's a great question. It seems when you think about our bioinformatics platform, when we think about it, we think about quality confidence that did the experiment run well. And the metrics on our data are very different than the metrics on standard master-chromatry data sets. So we've had to build a series of metrics to say, "Yeah, this looks great." So that's layer- at the level of primary data. Then there's the next layer up from that about the protein identification and quantification layer. And again, there you want to provide both primary data access so that people can download simple spreadsheets of protein identities, quantities, and false discovery rates.

Parag Mallick: It's a great question. I think when you think about our bioinformatics platform there, when we think about it, we think about it as a, The first layer is just at the level of primary data, quality, and confidence that did the experiment run well. And the metrics on our data are very different than the metrics on standard mass spectrometry data sets. So we've had to build a series of metrics to say, yes, this looks great. So that's layer one, at the level of primary.

Matthew Carlisle Sykes: Hi, this is Parag. I'll take the first crack. It's a great question.

Speaker Change: I think when you think about our bioinformatics platform, when we think about it, we think about it as a couple layers. The first layer is just at the level of primary data, quality, confidence, that did the experiment run well.

Parag Mallick: Then there's the next layer up from that, about protein identification and quantification. And again, you want to provide both primary data access so that people can download simple spreadsheets of protein identities, quantities, and false discovery rates. And then you want to be able to enable them to visualize the data, look at the data within the context of their own datasets.

Matthew Carlisle Sykes: And the metrics on our data are very different than the metrics on a standard mass spectrometry data set. So we've had to build a series of metrics to say, yes, this looks great. So that's layer one.

Matthew Carlisle Sykes: at the level of primary data.

Matthew Carlisle Sykes: Then there's the next layer up from that about the protein identification and quantification layer and Again there you want to provide both primary data access so that people can download

Matthew Carlisle Sykes: Simple Spreadsheets of Protein Identities, Quantities, and False Discovery Rates.

Parag Mallick: And then you want to be able to enable them to visualize the data, look at the data within the context of their own data sets. And so that's layer two. Layer three is really comparative analysis, and this is where you analyze between different cohorts and case control studies, responders and non-responders, and that's really where you start getting into the biology. And then there's a fourth layer, ultimately, which is incredibly powerful, which is the integration of our data with other data. So when we think of the bioinformatics portal, we think across that span. And the places we've done a tremendous amount of voice of customer work in understanding what are the gaps for people, what are, depending upon the type of consumer, whether they're truly sophisticated, have an existing bioinformatics process, or whether they're an earlier stage in their bioinformatics development, or biological researchers, and they're a set of fairly common analyses that come out from that, things like the ability to do principal components analysis or generate volcano plots, pathway analysis.

Parag Mallick: And so that's layer two. Layer three is really comparative analysis, and this is where you are analyzed between different cohorts. Case Control Studies, Responder, Non-Responders, and that's really where you start getting into the biology.

Matthew Carlisle Sykes: And then you want to be able to enable them to visualize the data, look at the data within the context of their own data sets. And so that's Layer 2. Layer 3 is really comparative analysis. And this is where you...

Speaker Change: Analyze between different cohorts and

Speaker Change: Case Control Studies, Responder, Non-Responders, and that's really where you start getting into the biology.

Parag Mallick: And then there's a fourth layer, ultimately, which is incredibly powerful, which is the integration of our data with other. When we think of the bioinformatics portal, we think across that spectrum. And the place is we've done a tremendous amount of voice of customer work in understanding what are the gaps for people, what are depending upon the type of consumer, whether they're extremely sophisticated, have an existing bioinformatics process, or whether they're an earlier stage in their bioinformatics development or biological researchers. And there are a set of fairly common analyses that come out from that. Things like the ability to do principal components analysis or generate volcano plots, and pathway analysis.

Speaker Change: And then there's a there's a fourth layer ultimately, which is incredibly powerful, which is the integration of our data with other data. This, so when we think of the bioinformatics portal, we think across that, that span.

Speaker Change: And the place is we've done a tremendous amount of voice of customer work in understanding what are the gaps for people, what are, depending upon the type of consumer, whether they're extremely sophisticated, have an existing bioinformatics process, or whether they're an earlier stage.

Speaker Change: in their bioinformatics development or biological researchers. And there are a set of fairly common analyses that come out from that. Things like the ability to do principal components analysis or generate volcano plots.

Parag Mallick: And so we've heard all of that feedback and are incorporating it. On the proteiform side, this is an entirely new modality: the level of detail that people haven't ever seen before. And so for those, we've actually been developing custom visualizations as well to enable people to look at that incredible detail on individual protein molecules that they've never been able to see before. So all of that has been; anytime we develop these things, we do spend effort going and talking to the customers and saying, "Hey, how do you feel about this?" What else are you looking for?

Speaker Change: Pathway Analysis. And so we've heard all of that feedback and are incorporating it.

Parag Mallick: And so we've heard all of that feedback and are incorporating it. On the proteoform side, this is an entirely new modality. It's a level of detail that people haven't ever seen before. And so for those, we've actually been developing custom visualizations as well to enable people to look at that, that incredible, Spend effort going and talking to the customers and saying, Hey, how do you feel about this? What else are you looking for?

Speaker Change: On the proteoform side, this is an entirely new modality. It's a level of detail that people haven't ever seen before. And so for those, we've actually been developing custom visualizations as well.

Speaker Change: to enable people to look at that, that incredible.

Speaker Change: detail on individual protein molecules that they've never been able to see before. So all of that has been anytime we develop these things we do spend effort going and talking to the customers and saying hey how do you feel about this what else are you looking for and the feedback has been very consistent and positive.

Parag Mallick: And the feedback's been very consistent and positive.

Parag Mallick: And the feedback has been very consistent. Got it. Thank you very much, Parag.

Matt Sykes: Got it. Thank you very much, Brock. And then, as we look into 25 in the launch, it's obviously unclear what kind of NIH NSF budgets may or may not be, but there's clearly some concern that those budgets could be somewhat compromised next year. I think you've stayed in the past that you feel like the novelty of the instrument will likely penetrate through different types of budget environments.

Sujal M. Patel: And then, Sujal, just, you know, as we look into 2025 and the launch, it's obviously unclear what kind of NIH and NSF budgets may or may not be, but there's clearly some concern that those budgets could be somewhat compromised next year. I think you've stated in the past that you feel like the novelty of the instrument will likely penetrate different types of budget environments, but just curious how you're thinking about the potential level of spend and budget for the academic end market next year and the various scenarios under which, you know, the NIH budget or the NSF budget could kind of be and what your go-to market would be, if that would change it at all. Yes, it's a good question.

Speaker Change: Got it. Thank you very much, Parag. And then, Sujal, just, you know, as we look into 25 and the launch,

Sujal M. Patel: It's obviously unclear what kind of NIH, NSF budgets.

Speaker Change: May or may not be, but there's clearly some concern that those budgets could be somewhat compromised next year.

Speaker Change: I think you've stated in the past that you feel like the novelty of the instrument will likely penetrate through different types of budget environments, but just curious how you're thinking about

Sujal Patel: But just curious how you're thinking about the potential level of spend and budget for the academic and market next year and the various scenarios under which, you know, the NIH budget or the NSF budget could kind of be in what you're, what you're going to market if that would change it at all. Yes, it's a good question. I think that when I think that my comments that I've made previously are still relevant today, which is that we are building a technology that is extremely normal and produces a breadth and scale of biological insight that no other instrument is capable of doing.

Speaker Change: the potential level of spend and budget for the academic and market next year and the various scenarios under which you know the NIH budget or the NSF budget could could kind of be and what your what your go to market, if that would change it at all.

Sujal M. Patel: I think that my comments that I've made previously are still relevant today, which is that we are building a technology that is extremely novel and produces a breadth and scale of biological insight that no other instrument is capable of doing, and it's extremely valuable data to our customers. So we believe that with that as a backdrop, and with that as a backdrop, we think that we'll still be able to push through even if some of the government funding moves down through 2025.

Speaker Change: Yeah, it's a good question.

Speaker Change: I think that my comments that I've made previously are still relevant today, which is that we are building a technology that is extremely novel and produces a

Speaker Change: breadth and scale of biological insight that no other instrument is capable of.

Sujal Patel: And it's extremely valuable data to our customers. So we believe that with that as a backdrop, and with that as a backdrop, we think that that that will still be able to push through even if some of the government funding moves down through 2025. That being said, whenever there's some downward pressure on government funding, what you'll find is that there could be some elongation in CL cycles, or it could be a little more complicated to acquire funds in those organizations that rely on the government. So that's typically academic and nonprofit research. And I think that the way to overcome that is that, you know, in the excellent tools, it's quite common to provide lots of different on-ramps onto a new technology.

Speaker Change: doing and it's extremely valuable data to our customers. So we believe that

Speaker Change: With that as a backdrop, we think that we'll still be able to push through even if some of the government funding moves down through 2025.

Sujal M. Patel: That being said, whenever there's some downward pressure on government funding, what you'll find is that there could be some elongation in sales cycles, or it could be a little more complicated to acquire funds in those organizations that rely on the government.

Speaker Change: That being said, whenever there's

Speaker Change: some downward pressure on on government funding, what what you'll find is that

Speaker Change: There could be some elongation in sales cycles, or it could be a little more complicated to acquire funds in those organizations that rely on the government. So that's typically academic and non-profit research. And I think that the way to overcome that is that, you know, in DX and tools, it's quite common to provide lots of different on-ramps onto a new technology. One is instrument purchase. One is that a customer may choose to run.

Sujal M. Patel: So that's typically academic and nonprofit research. And I think that the way to overcome that is that, you know, in DX and tools, it's quite common to provide lots of different on ramps onto a new technology. One is the instrument purchase, and one is that a customer may choose to run in a service model for a longer period of time and then switch to an instrument purchase.

Sujal Patel: One is instrument purchase. One is that a customer may choose to run in a service model for a longer period of time than switch to an instrument purchase. There are other models, such as instrument rentals and instrument lease types of opportunities, and, you know, consumable prepays and those types of things. We're not committed to any of those models, but they're all possible. And we're open that if we need some of those on ramp to help customers get into our platform, we're open to those types of things. One of the things that is particularly beneficial to us when we think about those alternatives is that, you know, typically you don't want to put capital out there and not be able to recoup at least the cost of it very, very quickly, because all of our revenue streams, including the instrument or high price margin.

Sujal M. Patel: There are other models, such as instrument rental and instrument lease types of opportunities, and, you know, consumable prepays and those types of things. We're not committed to any of those models, but they're all possible. And we're open to if we need some of those on ramps to help customers get into our platform, we're open to those types of things. One of the things that, you know, is particularly beneficial to us when we think about those alternatives is that, you know, typically you don't want to put capital out there and not be able to recoup at least the cost of it very, very quickly.

Speaker Change: in a service model for a longer period of time and then switch to an instrument purchase.

Speaker Change: There are other models, such as instrument rentals and instrument lease types of opportunities and consumable prepays and those types of things. We're not committed to any of those models, but they're all possible and we're open to that.

Speaker Change: If we need some of those on-ramp to help customers get into our platform, we're open to those types of things.

Speaker Change: One of the things that, you know, is particularly beneficial to us when we think about those alternatives is that, you know, typically you don't want to put capital out there and not be able to recoup at least the cost of it very, very quickly. Because all of our revenue streams, including the instrument or high gross margin, it gives us a little bit more flexibility and should we need it in 25 or 26 based on where government funding trends, I think we'll be able to react quickly.

Sujal M. Patel: And because all of our revenue streams, including the instrument or high gross margin, it gives us a little bit more flexibility, and should we need it in 25 or 26 based on where government funding trends go, I think we'll be able to react quickly. And if I could squeeze one more in for Anna, just on the total OPEX growth of $15 to $20 million versus the previous guy of $25, what areas are you kind of achieving some level of savings to modify that guy that you had previously? Matt, I can definitely speak to that.

Sujal Patel: It gives us a little bit more flexibility, and should we need it in 25 or 26, based on where government funding trends, I think we'll build a relic react quickly.

Anna Mowry: and Dr. O'Connor and Dr. O'Connor. Matt, I can definitely speak to that. In our original operating expense plan, we had anticipated investments in a targeted way across all areas of the business. On the R&D side, we've had a few years of growth there, and so we've realized that we have the resources we need and we can limit further growth and just work with what we have. We've been repurposing or reallocating resources from areas of the business to the areas of highest need. We've also brought down our cost of reagents in a way that offsets the growth and consumption of those reagents.

Anna Mowry: Got it. And if I could squeeze one more in for Anna, just on the total OPEX growth of $15 to $20 million versus the previous guy of $25, what areas are you kind of achieving some level of savings to modify that guy that you had previously?

Anna Mowry: In our original operating expense plan, we anticipated investments in a targeted way across all areas of the business. On the R&D side, we've had a few years of growth there. And so we've realized that we have the resources we need, and we can limit further growth and just work with what we have. We've been repurposing or reallocating resources from areas of the business to the areas of highest need. We've also brought down our cost of reagents at the same time in a way that offsets the growth and consumption of those reagents. That's really what has driven our ability to hold R&D expenses and expense growth a little bit lower. On the G&A side, we've found savings there as well.

Anna Mowry: Matt, I can definitely speak to that. In our original operating expense plan, we had anticipated investments in a targeted way across all areas of the business.

Speaker Change: On the R&D side, we've had a few years of growth there. And so we've realized that we have the resources we need and we can limit further growth and just work with what we have. We've been repurposing or reallocating resources from

Speaker Change: of the business to the areas of highest need. We've also brought down our cost of reagents at the same, in a way that offsets the growth and consumption of those reagents. That's what really what has driven our ability to hold

Anna Mowry: That's really what has driven our ability to hold R&D expenses, expense growth a little bit lower. On the GNA side, we've found savings there as well, and as you know, we hold off on hiring the commercial team until we hit those product milestones. So the combination of those has really behind the reduced off-ex guidance.

Anna Mowry: And as you know, we hold off on hiring the commercial team until we hit those product milestones. So the combination of those has really behind the reduced off X guidance.

Speaker Change: R&D, Expenses, Expense Growth.

Speaker Change: a little bit lower. On the GNA side, we've found savings there as well.

Speaker Change: And as you know, we hold off on hiring the commercial team until we hit those

Speaker Change: Product Milestone. So the combination of those

Speaker Change: has really behind the reduced OPEX guidance.

Anna Mowry: Got it. Thanks. Very helpful.

Operator: Thanks. Very helpful. And thank you.

Operator: And thank you, and one moment for our next question.

Speaker Change: Got it. Thanks. Very helpful.

Speaker Change: And thank you. And one moment for our next question.

Hugo Cervant: Our next question comes from P.I. Cervant from Morgan Stanley. Your line is now open.

Operator: And one moment for our next question. Our next question comes from Tejas Savant from Morgan Stanley. Your line is now open. Good morning, this is Yuko.

Speaker Change: Our next question comes from Tejas Savant from Morgan Stanley . Your line is now open.

Hugo Cervant: Good morning. This is Hugo. Thank you for taking our questions. Would you talk about where you are in development progress for the instrument with respect to launch target in 25? Would you say that developmental city reaction is the gating factor at this point? Thanks for the question.

Yuko Oku: Thank you for taking our questions. Could you talk about where you are in the development progress for the instrument with respect to the launch target in 2025? Would you say that the development of city radiation is the gating factor? Thanks for the question. Parag, do you want to?

Yuko: Good morning, this is Yuko. Thank you for taking our questions. Would you talk about where you are in development progress for the instrument with respect to launch target in 2025? Would you say that development of city radiation is the gating factor at this point?

Parag Mallick: Yeah, this is Braggel. I'll take this first. And then one of the things that I'm very excited about, and I mentioned earlier, was our continued efforts to improve the scale and quality of our large-scale experiments. As you know, those experiments bring together a mix of large numbers of vicinity reagents, large numbers of cycles, the newest chips, and the newest instruments. And advances that we really focus on are one, the ability to execute those experiments; two, as Anna mentioned, the costing of those; three, the reliability of each of the components of that system, from the consumables, which includes the nanoparticles for protein deposition, the vicinity reagents, as well as all the buffers in the system and ultimately the bioinformatics.

Parag Mallick: Yeah, this is Parag. I'll take this first. And then one of the things that I'm very excited about, and I mentioned earlier, our continued efforts to improve the scale and quality of our large-scale experiments. As you know, those experiments bring together a mix of large numbers of affinity reagents, large numbers of cycles, the newest chips, the newest instruments, and advances that we really focus on are One, the ability to execute those experiments.

Yuko: Thanks for the question. Yeah, this is Parag. I'll take this first.

Yuko: And then one of the one of the things that I'm very excited about and I mentioned earlier was

Speaker Change: Our continued efforts to improve the scale and quality of our large-scale experiments.

Speaker Change: As we, as you know, those experiments bring together a mix of large numbers of affinity reagents, large numbers of cycles, the newest, newest chips, the newest, newest instruments.

Speaker Change: and advances that we really focus on are

Parag Mallick: Two, as Anna mentioned, the cost of those. Three, the reliability of each of the components of that system, from the consumables, which include the Nanoparticles for Protein Deposition, the affinity reagent, as well as all the buffers in this, and ultimately the bioinformatics. And in the last last quarter, we've seen a tremendous increase, both in the scale of those experiments and, in terms of stability, aspects like cycle after cycle, is the chip remaining clean? Are the proteins staying immobilized?

Speaker Change: One, the ability to execute those experiments. Two, as Anna mentioned, the costing of those. Three, the reliability of each of the components of that system from the consumables, which includes the

Speaker Change: nanoparticles for protein deposition, the affinity reagents, as well as the

Anna Mowry: all the buffers in the system, and ultimately the bioinformatics. And the last quarter we've seen a tremendous increase in

Parag Mallick: And the last quarter we've seen a tremendous increase in both the scale of those experiments and in terms of stability. Facets like cycle after cycle, is the chip remaining clean? Are the proteins staying immobilized? And latest data just look beautiful, frankly, and in terms of the non-specific finding backgrounds of removal efficiencies, all of those continuing to improve. And so, very exciting progress on development.

Anna Mowry: Both the scale of those experiments and in terms of stability

Speaker Change: Facets like

Anna Mowry: cycle after cycle, is the chip remaining clean? Are the proteins staying immobilized? And latest data just looked beautiful, frankly, and in terms of the

Parag Mallick: And the latest data just looks beautiful, frankly, and in terms of all of those continuing to improve. And so, very exciting progress. Thank you for that color.

Anna Mowry: The non-specific binding backgrounds, the removal efficiencies, all of those continuing to improve. And so, very exciting progress in development.

Parag Mallick: Great. Thank you for that color.

Parag Mallick: And then, second question for me regarding development cadence to reach a milestone where you're able to measure, let's say, the thousand proteins reproducibly to unlock greater visibility towards that specific development. And timeline, is this something that would happen fairly quickly once you hit a certain point, like hundred proteins measured, or is it something where development will move fairly in a fairly linear fashion?

Yuko Oku: Second question for me, regarding development cadence to reach a milestone where you're able to measure, let's say, the... Matthew Stanton, Unknown Executive, Yuko Oku, Carrie Mendivil, Anna Mowry, Parag Mallick, Nautilus Biotech, Matthew Stanton, Unknown Executive, Yuko Oku, Carrie Mendivil, Anna Mowry, Parag Mallick, Nat Do you want to start, Parag, and then I'll take it from there?

Speaker Change: Great, thank you for that color and then

Speaker Change: Second question for me regarding development cadence

Speaker Change: to reach a milestone where you're able to measure, let's say, the bowels and proteins

Speaker Change: Reproducibly to unlock greater visibility towards that specific development timeline.

Speaker Change: Is this something that would happen fairly quickly once you hit a certain point, like 100 proteins measured, or is it something where development would move in a fairly linear fashion?

Parag Mallick: Yeah, I can take this one.

Sujal Patel: Do I start talking about taking it from there? Well, I'll just mention that one of the most exciting aspects of the platform really is this exponential non-linearity in how the number of proteins decoded scales with the number of cycles. And so, my expectation would be that there would be a very strongly non-linear aspect to that. But Sujal, please cut some color there. Yeah, that's right. I mean, I think that, you know, we've talked about this for a number of years with any traditional platform that uses anybody's to measure proteins. You need one or two of those antibodies or affinity reagents deals with detect each of the different proteins in the gene-cutter human proteop.

Speaker Change: Yeah, I can take this one. Do you want to start, Parag, and then I'll take it from there?

Yuko Oku: I'll just mention that one of the most exciting aspects of the platform really is this exponential nonlinearity in how the number of proteins decoded scales. So my expectation would be that there would be a very strongly nonlinear. Sujal, please.

Parag Mallick: Well, I'll just mention that the one of the most

Parag Mallick: Exciting aspects of the platform really is this exponential non-linearity in how the number of proteins decoded scales with the number of cycles.

Parag Mallick: And so my expectation would be that there would be a very strongly non-linear aspect to that. But Sujal, please add some color there.

Sujal M. Patel: Yeah, that's right. I mean, we've talked about this for a number of years; with any traditional platform that uses antibodies to measure proteins, you need one or two of those antibodies or affinity reagents to be able to detect each of the different proteins in the gene-coding human proteome. Our technology is very different. With only 300 or so multi affinity probes, as we call them, you're able to gather all of the information that you need from a particular molecule to almost, you know, almost with 100% certainty differentiate it from every other molecule in the human proteome.

Sujal M. Patel: Yeah, that's right. I mean, I think that, you know, we've talked about this for, for a number of years, with any traditional platform that uses antibodies to measure proteins, you need one or two of those antibodies or affinity reagents to be able to detect each of the different proteins in the, in the gene code of human proteome.

Sujal Patel: Our technology is very different. With only 300 or so multi-affinity probes, as we call them, you're able to gather all of the information that you need from a particular molecule to almost, with, you know, almost with 100% certainty differentiated from every other molecule in the human proteopole. So, therefore, identifying it accurately. In order to make an accurate identification of just about anything from a complex sample, we have to have most of the probes, and we have to gather quite a bit of information. And so, once we have crossed over that point, you'll cross through 100, 500,000, 2000 proteins pretty rapidly because it really just has to do with getting more of those reagents on the platform.

Sujal M. Patel: Our technology is very different. With only 300 or so multi-affinity probes as we call them, you're able to gather all of the information that you need from a particular molecule to almost with 100% certainty differentiate it from every other molecule in the human proteome and so therefore identifying it accurately.

Sujal M. Patel: And so, therefore, identifying it accurately; in order to make an accurate identification of just about anything from a complex sample, we have to have most of the probes, and we have to gather quite a bit of information.

Sujal M. Patel: In order to make an accurate

Sujal M. Patel: Identification of just about anything from a complex sample. We have to have most of the probes and we have to gather

Sujal M. Patel: And so, once we cross over that point, you'll cross through 100, 500, 1000, 2000 proteins pretty rapidly because it really just has to do with getting more of those reagents on the platform. In terms of cycle count, Parag mentioned earlier that our large cycle experiments are performing quite well. And so we feel like the assay stability and reliability are there. And so now really, it's focused on getting the reagents that have the right characteristics on our platform to be able to put the entire set together to be able to get to first those early milestones that I talked about, but then ultimately comprehensive proteomic coverage. Great, thank you. And thank you.

Sujal M. Patel: quite a bit of information. And so once we cross over that point, you'll cross through 100, 500, 1,000, 2,000 proteins pretty rapidly, because it really just has to do with getting more of those reagents on the platform. In terms of cycle count, you know, Parag mentioned earlier that our large cycle experiments are performing quite well. And so we feel like the assay stability and reliability are there. And so now really, it's focused on getting the reagents that have the right characteristics on our platform to be able to put the entire set together to be able to get to

Sujal Patel: In terms of cycle count, you know, Parag mentioned earlier that our large cycle experiments are performing quite well. And so, we feel like the assay, stability, and reliability are there. And so, now, really, it's focused on getting the reagents that have the right characteristics on a platform to be able to put the entire set together to be able to get to first those early milestones that I talked about, but then ultimately comprehensive proteomic coverage.

Speaker Change: First, those early milestones that I talked about, but then ultimately comprehensive proteomic coverage.

Operator: Great. Thank you.

Operator: Yeah.

Operator: And thank you. And one moment for our next question.

Speaker Change: Great, thank you.

Speaker Change: And thank you. And one moment for our next question.

Tyco Peterson: And our next question comes from Tyco Peterson from Jeffries. Your line is not open. Hey, good morning. Thanks for taking the questions. Maybe you could touch on the publication roadmap. You know, how important is that out of early access that gets good publications. You know, what should we be focused on there?

Operator: And one moment for our next question. And our next question comes from Tycho Peterson from Jeffreys. Your line is now open. Okay, good morning.

Speaker Change: And our next question comes from Tycho Peterson from Jeffreys. Your line is now open.

Tycho Peterson: Thanks for taking the questions. Maybe you could touch on the publication roadmap. You know, how important is it out of early access to get good publications? You know, what should we be focused on there? Hi, this is Parag.

Tycho Peterson: Okay, good morning. Thanks for taking the questions. Maybe you could touch on publication roadmap. You know, how important is that out of early access to get good publications? You know, what should we be focused on there?

Parag Mallick: Hi, this is Parag. That's a great question. And we definitely view publications as critical for sharing information with the community and getting them excited. In general, there are a couple different types of publications that we focus on. The first are ones like our prison manuscripts that we shared previously, which really get to how does the platform work? We really view those as both core demonstrations of the capabilities of the platform, as well as exposition of helping the scientific community understand the core components and how they work. It's first layer of publication. The second are applications, and these are really things that we would do with our partners to say, hey look, you can use this kind of, you can learn this kind of biology with our platform and demonstrating not just the components but the integrated system and how it can be used together and how it performs. And then the next layer beyond that whole integrated system are even more applications studies of, hey, I'm asking this biological question and using the Nautilus platform to see something that I wasn't able to see any other way.

Parag Mallick: That's a great question, and we definitely view publications as critical for sharing information with the community and getting them excited. In general, there are a couple different types of publications that we focus on. The first are ones like our PRISM manuscripts, which we shared previously, which really get to how the platform works. We really view those as both core demonstrations of the capabilities of the platform, as well as exposition, helping the scientific community understand the core components and how they work. First Layer of Publication.

Tycho Peterson: Hi, this is Parag. That's a great question. And we definitely view publications as critical for sharing information with the community and getting them excited.

Speaker Change: In general, there are a couple different types of publications that we focus on. The first are ones like our prison manuscripts that we

Tycho Peterson: previously, which really get to how does the platform work.

Tycho Peterson: core demonstrations of the capabilities of the platform as well as exposition helping the scientific community understand the core components and how they work.

Parag Mallick: The second are applications, and these are really things, with our partners to say, Hey, look, you can you can use this kind of biology, you can you can learn this kind of biology, with our platform, and demonstrating not just the components, but how they can be integrated and how they can work together and how they perform. And then the next layer beyond that whole integrated system are even more application studies of, "hey, I'm asking this biological question and using the Nautilus platform to see something that I wasn't able to see any other way."

Tycho Peterson: The second are applications, and these are really things that we would do with our partners to say, hey, look, you can, you can use this kind of, you can, you can learn this kind of biology.

Tycho Peterson: with our platform and demonstrating not just the components but the integrated system and how it can be used.

Speaker Change: Unknown Executive, Carrie Mendivil, Anna Mowry

Speaker Change: and using the Nautilus platform to see something that I wasn't able to see any other way. Here's what we learned.

Parag Mallick: Here's what we learned.

Parag Mallick: And we see that layering of components to integrated systems to biology as a multilayer stack that brings in different communities from the early adopters to the middle adopters to the late adopters and helps drive a cycle of excitement about the platform and what it can provide.

Parag Mallick: And we see that layering of components to integrated system to biology as a multi-layer stack that brings in different communities from the early adopters to the middle adopters to the later adopters, and it helps drive a cycle of excitement about the platform and what it can provide.

Speaker Change: And we see that layering of components to integrated system to biology.

Speaker Change: brings in different communities from the early adopters to the middle adopters to the late adopters and helps drive a cycle of excitement about the platform and what it can provide.

Parag Mallick: Great. And then you've had a number of questions on the tech development. I guess Matt obviously asked about informatics, maybe flipping it around upstream.

Parag Mallick: And then you've had a number of questions on the tech development. You know, I guess Matt obviously asked about informatics, maybe flipping it around, you know, upstream. Is there anything on the sample prep front we should be paying attention to in terms of the kind of improvements there? Absolutely. I think one of the, On sample prep, when we get there, the first aspect there is, It's really just the simplicity of the workflow, the amount of input material that's required, the extent of demonstration that we have about does the sample prep bias the output in any way?

Speaker Change: Great. And then you've had a number of questions on the tech development. You know, I guess Matt obviously asked about informatics, maybe flipping it around, you know, upstream. Is there anything on the sample prep front we should be paying attention to in terms of kind of improvements there?

Parag Mallick: Is there anything on the sample front we should be paying attention to in terms of kind of an improvement there? Absolutely. I think one of the on the sample prep, when we, the first aspect there is it's really just the simplicity of the workflow, the amount of input material that's required, the extent of demonstration that we have about does the sample prep bias the output in any way. And so I think we've had really great progress in the last quarter on that last one, which has been a question that comes up. Hey, there's a chemical process, there's a functionalization, there's an attachment of nanoparticles, does this substantially bias you towards this class of proteins or that class of chemistry is very general, which is very exciting.

Speaker Change: Absolutely. I think one of the

Speaker Change: On the sample prep, when we, there are

Speaker Change: The first aspect there is

Speaker Change: It's really just the...

Speaker Change: The Simplicity of the Workflow, the Amount of Input Material that's Required, the Extent of Demonstration that we have about Does the Sample Prep

Parag Mallick: And so I think we've made really great progress in the last quarter on that last one, which has been a question that comes up: hey, there's a chemical process, there's a functionalization, there's an attachment to nanoparticles. Does this substantially bias you towards this class of proteins or that class of proteins? The data coming back very strongly indicates that the chemistry is very general, which is very exciting. So that'll be data that we'll share as well at Hoopoe.

Speaker Change: Unknown Executive, Carrie Mendivil, Anna Mowry

Speaker Change: output in any way. And so I think we've had really great progress in the last quarter on that last one, which has been an a question that comes up, hey, there's a chemical chemical process, there's a functionalization, there's an attachment nanoparticles, does this substantially bias you towards

Speaker Change: This class of proteins or that class of proteins and the data coming back very strongly indicates No, there's that that chemistry is very general, which is very exciting so that'll be data that we'll share as well at Hoopoe and and then the other aspect of sample prep

Parag Mallick: So that'll be data that we'll share as well at Hoopo, and then the other aspect of sample prep is what is the amount of input material for proteforms. Again, there is a question of if we're doing an enrichment. How much enrichment are we achieving? Are there biases in that enrichment towards or away from particular proteforms? And so that's, that's other data that looks really exciting.

Parag Mallick: And then the other aspect of sample prep is what is the amount of input material for proteoforms? Again, there is a question of if we're doing an enrichment, How Much Enrichment Are We Achieving? Are There Biases?

Speaker Change: What is the amount of input material for proteoforms? Again, there is a question of if we're doing enrichment.

Parag Mallick: in that enrichment towards or away from particular produce worms. And so that's that other data that looks really exciting. I'm excited to share that at Hoopoe. Okay. And then I want to follow up on the question earlier on funding. And Sujal, you mentioned maybe, you know, entertaining leasing, you know, reagent rental, other kinds of types of business models.

Speaker Change: How much enrichment are we achieving? Are there biases in that enrichment towards or away from particular proteoforms? And so that's other data that looks really exciting and excited to share that at HUPO as well.

Parag Mallick: and excited to share that a two-po as well.

Sujal Patel: Okay, and then I want to follow up on the question earlier on funding, and Sujal, you mentioned maybe, you know, entertaining leasing, you know, regional, other kind of types of business models. I'm just curious how seriously you're thinking about that, and how we should think about your willingness to kind of carry the cost of the capital equipment on your balance sheet if you do move to a kind of reagent rental model.

Speaker Change: Okay, and then I want to follow up on the question earlier on funding. And Sujal, you mentioned maybe, you know, entertaining, leasing, you know, agent rental, other kind of types of business models.

Sujal M. Patel: I'm just curious how seriously you're thinking about that and how we should think about your willingness to kind of carry the cost of the capital equipment on your balance sheet if you do move to a kind of reagent rental model. So I would characterize our thinking in that regard is still relatively early. And so by relatively early, for example, we haven't really floated that with potential customers as a model. So I think that with all of those types of strategies, I view them as a bridge to instrument purchase. And so with that, we're not going to be carrying the cost of the instrumentation on our balance sheet for a whole lot of time. That being said, sometimes there are some special cases.

Speaker Change: I'm just curious how seriously you're thinking about that and how we should think about your willingness to kind of carry the cost of the capital equipment on your balance sheet if you do move to a kind of reagent rental model.

Sujal Patel: So I would characterize that our thinking in that regard is still relatively early, and so I relatively early. For example, we haven't really floated that with potential customers as a model. I think that with all of those types of strategies, I view them as a bridge to instrument purchase, and so with that, we're not going to be carrying the cost of the instrumentation on our balance sheet for a whole lot of time. You know, that being said, sometimes there are some special cases. There's a particular researcher that you want to do business with, and you want to do that use that model for longer. Given that the cost of the instrument for us to manufacture and ship it is relatively low compared to the sales price of an instrument deal, which is roughly a million dollars.

Sujal M. Patel: So, I would characterize that our thinking in that regard is still relatively early. And so, by relatively early, for example, we haven't really floated that with potential customers as a model. I think that with all of those types of strategies, I view them as a bridge to instrument purchase.

Sujal M. Patel: And so with that, we're not going to be carrying the...

Sujal M. Patel: There's a particular researcher that you want to do business with, and you want to use that model for longer. And given that the cost of the instrument for us to manufacture and ship it is relatively low compared to the sales price of an instrument deal, which is roughly a million dollars, I think that that sort of model is intuitively more doable. But we haven't done the detailed work yet, and I think that as we get closer to launch, and we're closer to conversations with customers about what the capital acquisition cycle looks like, I think we'll be able to think through that in more detail. Okay, and then one last one on the diagnostic front. There are kind of a couple of angles here. Roche is obviously entering the clinical mass spec market. They're talking about blood-based, you know, tests for amyloid pathology and Alzheimer's.

Sujal M. Patel: cost of the instrumentation on our balance sheet for a whole lot of time. You know, that being said, sometimes there are some special cases, there's a, you know, particular researcher that you want to do business with, and you want to do that, use that model for longer. And given that the

Sujal M. Patel: Cost of the instrument for us to manufacture and ship it is relatively low compared to the

Sujal Patel: I think that that sort of bottle intuitively is more doable, but we haven't done the detailed work yet, and I think that as we get closer to launch and we're closer to conversations with customers about what the capital acquisition cycle looks like.

Sujal M. Patel: The sales price of a instrument deal, which is roughly a million dollars, I think that I think that that that sort of bottle intuitively is more doable. But we haven't done the detailed work yet. And I think that as we get closer to launch, and we're closer to conversations with customers about what the

Sujal Patel: I think we'll be able to go and think through that in more detail.

Sujal M. Patel: Capital Acquisition Cycle looks like. I think we'll be able to go and think through that in more detail.

Sujal Patel: Okay. And then one last one on the diagnostics front, kind of a couple angles here. Roaches, obviously entering the clinical mass spec markets, they're talking about blood-based tests for MLA pathology and all of the timers.

Speaker Change: Okay, and then one last one on the diagnostic front, kind of a couple angles here. Roche is obviously entering the clinical mass spec market, they're talking about blood-based tests for amyloid pathology and Alzheimer's. I'm just curious.

Sujal Patel: I'm just curious how you think about them in the context of the space, how you think about kind of what needs to happen for the diagnostic market to open up more broadly. Will you guys go down the regulatory path to the box at some point down the road? Can you maybe just talk a little bit about how you think about the diagnostic opportunity involved? Yeah, why don't I start and then rock it at any detail in here. I think that, you know, first and foremost, we think that the Nautilus platform is really important for the diagnostic world for in really two categories.

Sujal M. Patel: I'm just curious how you think about them in the context of the space, what you think about kind of what needs to happen for the diagnostic market to open up more broadly? Will you guys go down the regulatory path of the box at some point down the road? Can you maybe just talk a little bit about how you think about the diagnostic opportunity evolving? Yeah, why don't I start, and then Parag can add any detail after that.

Speaker Change: How do you think about, you know, them in the context of the space, how you think about kind of what needs to happen for the diagnostic market to open up more broadly? Will you guys go down the regulatory path of the box at some point down the road? Can you maybe just talk a little bit about how you think about the diagnostic opportunity evolving?

Sujal M. Patel: I think that, you know, first and foremost, we think that the Nautilus platform is really important for the diagnostic world in two categories. Number one, on the broad scale proteome side, our platform provides a dynamic range and sensitivity, which enables you to reach much rarer biomarkers in blood. And so if you think about biomarkers that are present in blood at low concentrations, these are things that are shed from tissue, potentially from tumors.

Speaker Change: Yeah, why don't I start and then Parag can add any detail in here. I think that, you know, first and foremost, we think that

Parag Mallick: The Nautilus platform is really important for the diagnostic world in really two categories.

Sujal Patel: Number one, on the broad scale proteome side, our platform provides a dynamic range and a sensitivity, which enables you to reach much rarer biomarkers in blood. And so if you think about biomarkers that are present in blood at low concentration, these are things that are shredded from tissue, potentially from tumors. And so you really have to have a huge dynamic range and single molecule sensitivity to be able to reach all the way down to the lowest concentration proteins. And that I think is going to unlock new biomarkers that are going to be really interesting. On the proteoform side, as Prolog talked about and has prepared remarks, the ability to detect an entire proteoform is a whole new level of biological insight.

Parag Mallick: Number one, on the broad scale proteome side, our platform provides a dynamic range and a sensitivity which enables you to reach

Parag Mallick: much rarer biomarkers in blood. And so if you think about

Parag Mallick: Biomarkers that are present in blood at low concentration, these are things that are shedded from tissue, potentially from tumors. And so you really have to have a

Sujal M. Patel: And so you really have to have a huge dynamic range of single molecule sensitivity to be able to reach all the way down to the lowest concentrations of proteins. And that, I think, is going to unlock new biomarkers that are going to be really interesting. On the proteoform side, as Parag talked about in his prepared remark, The ability to detect an entire proteoform is a whole new level of biological insight. Today, the standard analysis that can be done with assays and with mass spec can detect protein modifications, which is a single modification. For example, there's a modification on tau at site 217 with phosphorylation.

Parag Mallick: Huge dynamic range of single molecule sensitivity to be able to reach all the way down to the lowest concentration proteins. And that, I think, is going to unlock new biomarkers that are going to be really interesting.

Parag Mallick: On the proteoform side, as Parag talked about in his prepared remarks,

Parag Mallick: The ability to detect an entire proteal form is a whole new level of biological insight.

Sujal Patel: Today, the standard analysis that can be done with assays and with mass specs can detect protein modifications, which is a single modification. For example, there is a modification on how at site 217 with phosphorylation. But what you can't tell is there are three phosphorylations, and they're at three different sites in this population and two different sites in that population. That proteoform information we believe and many care wells in the proteomics world believe will unlock a new type of biomarker and a new class of biomarkers that will be really important to the hypnastics.

Parag Mallick: The standard analysis that can be done with assays and with mass specs can detect

Parag Mallick: protein modifications, which is a single modification. For example, there's a modification on tau at site 217 with phosphorylation.

Sujal M. Patel: But what you can't tell is there are three phosphorylations, and they're at three different sites in this population and two different sites in that population. That proteoform information, we believe, and many KOLs in the proteomics world believe, will unlock a new type of biomarker and a new class of biomarkers that will be really important to diagnose. And so we think that from a discovery perspective, finding those biomarkers enables the X companies to do some really exciting things over the course of the next, you know, two, three, four, five, 10 years. The question around whether we will enter the clinical space with this product is not initially, for sure. The first use cases of this product for a number of years will be all RUO use cases.

Parag Mallick: But what you can't tell is there are three phosphorylations, and they're at three different sites in this population and two different sites in that population.

Sujal Patel: And so we think that from a discovery perspective, finding those biomarkers enables DX companies to do some really exciting things over the course of the next 2, 3, 4, 5, 10 years. First, the question around whether we will enter the clinical space with this product, not initially, for sure. The first use cases of this product for a number of years will be all RUL use cases. And when a customer makes a discovery, we'll say, "Hey, great, you know, customer, you found this great biomarker." Now go build a high throughput asset, go get a clue through the FDA.

Sujal M. Patel: And when a customer makes a discovery, we'll say, hey, great, you know, customer, you found this great biomarker. Now go build a high-throughput assay, get it cleared through the FDA, and we're going to go on to the next research discovery. But there will quickly come a point where either the dynamic range of sensitivity of our platform or its unique nature to measure proteoforms will become a necessity, and the customer won't have a way to really build an assay that replicates the finding that they made with the Nautilus platform.

Speaker Change: You know, customer, you found this great biomarker. Now go build a high-throughput assay. Go get it cleared through the FDA.

Sujal Patel: And, you know, we're going to go on to the next research discovery, but there will quickly come a point where either the dynamic range of sensitivity or our platform, or its unique nature to measure proteoforms will become a necessity. And the customer won't have a way to really build an assay that replicates the finding that they made with the non-risk platform. And I think that's probably the right point for us to start pushing the product through the FDA and moving towards clinical. I don't think that's in the first four to five years of shipping. I might be surprised, but I don't think it is.

Speaker Change: You know, we're going to go on to the next research discovery, but there will quickly come a point where either the dynamic range of sensitivity of our platform or its unique nature to measure proteoforms will become a necessity and the customer won't have a way to really build an assay that replicates the findings that have been made with the Nautilus platform. And I think that's probably the right point for us to start pushing the product through the FDA and moving towards clinical. I don't think that's in the first

Sujal M. Patel: And I think that's probably the right point for us to start pushing the product through the FDA and moving towards clinical trials. I don't think that's in the first 4 to 5 years of shipping. I might be surprised, but I don't think it is.

Sujal M. Patel: I think that those RUO use cases are going to be more than enough to fuel our growth for a number of years. Great. That's very helpful. Thank you. And thank you. And if you'd like to ask a question, that is star 11.

Sujal Patel: I think that those RUL use cases are going to be more than enough to fuel our growth burn.

Speaker Change: four to five years of shipping. I might be surprised but I don't think it is. I think that those RUL use cases are going to be more than enough to fuel our growth for a number of years.

Operator: That's a very helpful. Thank you.

Operator: And thank you. And if you'd like to ask a question, that is star 11. Again, if you'd like to ask a question, star 11. One moment for our next question.

Operator: Again, if you'd like to ask a question, go to 11. One moment for our next question. And our next question comes from Dan Brennan from TD Cowen. Your line is now open. Great. Thanks. Thanks for the questions here. Maybe just back to the timing of the launch.

Speaker Change: Great. That's very helpful. Thank you.

Dan Brennan: And our next question comes from Dan Brennan from TD Cowan. Your line is now open. Great. Thanks. Thanks for the questions here. Maybe just back to the timing of the launch. It appears to have slipped a little bit here from mid 25 to, I guess, back half 25. Obviously, you guys are tackling a very ambitious goal with very novel, single molecule protein detection. And that's not surprising; things can slip. But just given the series of footage that you've seen from, you know, end of 23 to end of 24 to mid 25. And now back half 25.

Speaker Change: Great, thanks. Thanks for the questions here. Maybe just back to the timing of the launch.

Daniel Gregory Brennan: It appears to have slipped a little bit here from mid-25 to, I guess, back half-25. Obviously, you guys are tackling a very ambitious goal with, you know, very novel single molecule protein detection, and that's not surprising things can slip.

Daniel Gregory Brennan: But just given the series of slippage that you've seen from, you know, end of 23 to end of 24, to mid-25, and now back to half 25, I'm just wondering what the key factors were for the latest delay, and how should investors gain confidence that this won't continue to slip, let's say beyond 25 into 26, or even later? Yeah, thanks for the question. This is Sujal. Maybe I'll take this one first.

Sujal Patel: I'm just wondering, can you address kind of the key factors for the latest delay? And how should investor gain confidence that this won't continue to sublet they beyond 25 into 26 or even later? Yeah, thanks for the question. This is digital. Maybe I'll take this one first. First and foremost, I wouldn't characterize my comments here today as being another slip. There are previous guidance from our last earnings call with that we intend to launch in 2025. We didn't provide any further specificity on that timeline. And I think our official guidance continues to be a launch in 2025.

Speaker Change: to mid-25 and now back at 25. I'm just wondering, can you address kind of the key factors for the latest delay? And how should investors gain confidence that this won't continue to slip, let's say, beyond 25 into 26 or even later?

Sujal M. Patel: First and foremost, I wouldn't characterize my comments here today as being another slip. Our previous guidance from our last earnings call was that we intend to launch in 2025. We didn't provide any further specificity on that timeline, and I think our official guidance continues to be a launch in 2025. But certainly, it is fair to say that it has taken us longer than we would have liked or we thought it would. And certainly, if you went back to when we went public, we thought we would be commercial by now.

Speaker Change: Yeah, thanks for the question. This is Sujal. Maybe I'll take this one first. First and foremost,

Sajal: I wouldn't characterize my comments here today as being another slip. Our previous guidance from our last earnings call was that we intend to

Sajal: Launched in 2025, we didn't provide.

Speaker Change: Any further specificity on that timeline, and I think, you know, our official guidance continues to be a launch in 2025.

Sujal Patel: But certainly it is there say that it has taken us longer than we would have liked or we've thought it would. And certainly, if you went back to when we went public, we thought we would be commercial by now. I think that I think that the nature of bringing something that is truly revolutionary and truly groundbreaking to market is characterized often by a lengthy development. And period and a lot of hard work and blood, sweat, and tears that goes into building that first product. And if you if you look at, you know, where we are closing in on and being as we get close to the end of the year here, it'll be eight years since program I got together to get this company off the ground and start development of the product.

Speaker Change: But certainly, it is fair to say that it has taken us longer than we would have liked or we thought it would. And certainly, if you went back to when we went public, we thought we would be commercial by now. I think that...

Speaker Change: I think that the nature of bringing something that is truly revolutionary and truly groundbreaking to market is

Speaker Change: Characterized often by

Speaker Change: A lengthy development period and a lot of hard work and blood, sweat and tears that goes into building that first product.

Parag Mallick: And if you, if you look at where we are closing in on, I mean, as we get close to the end of the year here, it'll be eight years since Parag and I got together to get this company off the ground and start development of the product. It has been a long journey, but we are building something that is truly groundbreaking in a lot of different areas.

Sujal M. Patel: I think that the nature of bringing something that is truly revolutionary and truly groundbreaking to market is often characterized by a lengthy development period and a lot of hard work and blood, sweat, and tears that go into building that first product. And if you look at where we are, closing in on, I mean, as we get close to the end of the year here, it'll be eight years since Parag and I got together to get this company off the ground and start developing the product.

Sujal Patel: It has been a long journey, but we are building something that is truly groundbreaking in a lot of different areas: the ability to immobilize billions of molecules on a flow cell in a chip, the ability to build this very new novel class of reagents, and the ability to build an instrument and an assay that can cycle those reagents one after the other and build up data points on single molecules. But together, that is that is a massive amount of work. And we continue to make really good progress on that front today. There's an instrument that is able to perform all the cycles that it needs to, to reach our launch targets.

Sujal M. Patel: It has been a long journey, but we are building something that is truly groundbreaking in a lot of different areas. The ability to immobilize billions of molecules on a flow cell in a chip, the ability to build this very new class of reagents, and the ability to build an instrument and an assay that can cycle those reagents one after the other and build up data points on single molecules.

Parag Mallick: the ability to immobilize billions of molecules on a flow cell in a chip, the ability to build this very new, novel class of reagents, and

Speaker Change: The ability to build an instrument and an assay that can cycle those reagents one after the other and build up data points on single molecules. Together, that is a massive amount of work.

Sujal M. Patel: Together, that is a massive amount of work, and we continue to make really good progress on that front. Today, we have an instrument that is able to perform all the cycles that it needs to to reach our launch targets. It's able to perform an assay reliably, and the data quality is already sufficient to be able to measure proteoforms.

Speaker Change: and we continue to make really good progress on that front. Today, there's an instrument that is able to perform all the cycles that it needs to, to reach our launch targets. It's able to perform an assay reliably. The data quality is

Sujal Patel: It's able to provide perform an assay reliably. The data quality is already sufficient to be able to measure proteiforms. For example, we believe that we should be able to measure in the near term a thousand different proteiforms of tau. And with that capability coming, we do expect, ahead of the proteome launch, to do more engagement on the proteiform side of the fence. And so all those are indications that all those are indications that the platform is coming together and working.

Sujal M. Patel: For example, we believe that we should be able to measure in the near term a thousand different proteoforms of tau. And with that capability coming, we do expect ahead of the proteome launch to do more engagements on the proteoform side of the fence. All those are indications that the platform is coming together and working. Now, you asked a very pointed question about how we know that it's not going to be 25 or 26 or 27. I think the answer to that question is that no one knows.

Speaker Change: is already sufficient to be able to measure proteoforms. For example, we believe that we should be able to measure in the near term 1000 different proteoforms of tau. And with that capability coming we we do expect

Speaker Change: you know, ahead of the proteome launch to do more engagements on the proteoform side of the fence. And so all those are indications that

Sujal Patel: Now, you know, you asked a very pointed question about how do we know that it's not going to be 25, or it's not going to be 26, or 27. And I think the answer to that question is no one knows. Myself, Parag, SuperSankara runs our R&D organization. My management team; we spend a lot of time looking at what our progress is towards our goals in R&D. What the data looks like. We spend a lot of time pattern matching against the experiences that we've had in the past. And all of those things continue to tell us that we are heading in the right direction.

Parag Mallick: All those are indications that the platform is coming together and working. Now, you asked a very pointed question about how do we know that it's not going to be 25, or it's not going to be 26, or 27. And I think the answer to that question is no one knows. Myself, Parag, Super Sankar, who runs our R&D organization, my management team, we spend a lot of time looking at.

Sujal M. Patel: Myself, Parag, SuperSankar, who runs our R&D organization, and my management team and I spend a lot of time looking at how we are progressing towards our goals in R&D, and what the data looks like. We spend a lot of time pattern matching against the experiences that we've had in the past, and all of those things continue to tell us that we are heading in the right direction and we are doing the things that we need to do to get the product out.

Parag Mallick: What our progress is towards our goals in R&D, what the data looks like, we spend a lot of time pattern matching against the experiences that we've had in the past, and all of those things continue to tell us that

Sujal Patel: And we are doing the things that we need to get the product out. And, you know, on the other side, I will use this opportunity to throw in there. Anna, myself and the entire management team, every person in our company is very focused on making sure that we run incredibly capital efficiently so that as the timeline has elongated, we've also been able to significantly stretch how long our cash lasts from those original projections back in 2023, 2024. And so I think that, you know, that's a long way of saying I think we're operating the business well.

Sujal M. Patel: On the other hand, I will use this as an opportunity to throw in there Anna, myself, and the entire management team. Frankly, every person in our company is very focused on making sure that we run incredibly capital efficiently so that as the timeline has elongated, we've also been able to significantly stretch how long our cash lasts from those original projections back in 2023 and 2024. And so, I think that's a long way of saying I think we're operating the business well, I think we're on the right track, and I continue to have a ton of confidence that we're making the progress that we need to get this product in the hands of biologists all over the world, where it can do good. Terrific. Thanks. Thanks, Parag.

Parag Mallick: that we are heading in the right direction and we are doing the things that we need to to get the product out.

Speaker Change: And, you know, on the other side, I will use this as an opportunity to throw in there.

Speaker Change: Anna, myself, and the entire management team, frankly, every person in our company is very focused on making sure that we run incredibly capital efficiently so that

Speaker Change: As the timeline has elongated, we've also been able to significantly stretch how long our cash lasts.

Speaker Change: original projections back in 2023, 2024. And so I think that

Parag Mallick: I think we're on the right track. And I continue to have a ton of confidence that we're making the progress that we need to get this product in the hands of style just all over the world where it can do good. I know you were also mentioned during the Q&A in the prepared remarks. You're making meaningful advances in Q2 on scale and stability. So could you just quantify that a little bit? I know in the past we've talked about probes for Cycle. You've talked about a number of reagents to get the full coverage kind of where you're at.

Speaker Change: That's a long way of saying I think we're operating the business well, I think we're on the right track, and I continue to have a ton of confidence that we're making the progress that we need to to get this product in the hands of biologists all over the world where it can do good.

Daniel Gregory Brennan: And I know you also mentioned during the Q&A and the prepared remarks that you're making meaningful advances in Q2 on scale and stability. So could you just quantify that a little bit? I know in the past, you've talked about probes per cycle. You've talked about the number of reagents to get to full coverage, kind of where you're at. Can you just provide updates maybe on those metrics or whatever metrics you think are relevant to distill the scale and stability advances that you saw?

Speaker Change: Terrific. Thanks. Thanks, Parag. And I know you also mentioned during the Q&A and the prepared remarks, you're making meaningful advances in Q2 on scale and stability. So could you just quantify that a little bit? I know in the past you've talked about probes per cycle. You've talked about number of reagents to get to full coverage, kind of where you're at. Can you just provide updates maybe on those metrics or whatever metrics you think are relevant to distill what the scale and stability advances that you saw?

Parag Mallick: Can you just provide updates, maybe on those metrics or whatever metrics you think are relevant to distill what the scale and stability advances that you saw?

Parag Mallick: Sure, this is Parag. So I think we haven't specifically disclosed the number of probes run, but it can be inferred. The number of cycle at if we go back a couple quarters, we showed data of stability and chip stability removal performance and efficiency that was on the order of about 25 cycles. We showed about 70 cycles, the most recent U.S. Hupo, we showed about 100 cycles. And now we're in the 125-150 that we are expecting to show shortly in that shows both again the stability of the platform removal efficiency. So that after you introduce and probe a reagent, are you kicking it off effectively and getting rid of it so that it's not hanging around.

Speaker Change: Sure, this is Parag. So I think we haven't specifically disclosed the number of probes run, but it can be inferred the number of cycles.

Daniel Gregory Brennan: [inaudible] At, if we go back a couple quarters, we showed data on stability and chip stability removal performance and efficiency that were on the order of about 25 cycles, then at The Hupo after that, we showed about 70 cycles. The most recent U.S. Hupo we showed about a hundred cycles, and now we're in the 125-150 that we are expecting to show shortly, and that shows both, again, the stability of the platform and removal efficiency, so that after you introduce and probe a reagent, are you kicking it off effectively and getting rid of it so that it's not hanging around? Same thing with that baseline of nonspecific binding.

Speaker Change: If we go back a couple quarters, we showed data of stability and chip stability, removal performance and efficiency that was on the order of about 25 cycles. Then at.

Speaker Change: The Hupo after that, we showed about 70 cycles. The most recent U.S. Hupo, we showed about a hundred cycles. And our...

Speaker Change: I think now we're in the 125, 150 that we are expecting to show shortly, and that shows both, again, the stability of the platform, removal efficiency, so that after you introduce and probe a reagent, are you

Parag Mallick: Same thing with that baseline of non-specific binding. We showed that up to about 100 cycles previously, and we're stretching that by another 25 to 50 cycles. So those are key metrics that get to the quality of the data.

Parag Mallick: We showed that up to about 100 cycles previously, stretching that by another 25 to 50 cycles. So those are key metrics that get to the quality of the data. One of the other aspects we look at is degradation of signal over the course of end cycles. Several years ago, we would be able to get to about five cycles, and then the signal would have decayed. Now, when we do these experiments where we introduce defined positive control cassettes at 15 cycle interviews or 15 cycle intervals, we see, Substantially, we're able to carry those out throughout the entire run.

Speaker Change: kicking it off effectively and getting rid of it so that it's not hanging around.

Speaker Change: Same thing with that baseline of nonspecific binding. We showed that up to about 100 cycles previously, and we're stretching that by another 25 to 50 cycles.

Parag Mallick: One of the other aspects we look at is degradation of signal over the course of Encycle. Several years ago, we would be able to get to about five cycles, and then the signal would have decayed. Now, when we do these experiments where we introduce defined positive control cassettes at 15 cycle interviews or 15 cycle interval, we see substantially we're able to carry those out throughout the entire run. And so those are all really key metrics that show the improvement and stability of the platform over increasing numbers of cycles. Got it.

Speaker Change: So those are key metrics that get to the quality of the data. One of the other aspects we look at is degradation of signal over the course of N cycles. Several years ago, we would be able to get to about five cycles and then the signal would have decayed.

Speaker Change: Now, when we do these experiments where we introduce defined positive control cassettes at 15-cycle intervals.

Speaker Change: We substantially were able to carry those out throughout the entire run, and so those are all really key metrics that show the improvement and stability of the platform over increasing numbers of cycles.

Parag Mallick: And so those are all really key metrics that show the improvement and stability of the platform over increasing numbers. Got it. And then maybe a final one for Anna.

Daniel Gregory Brennan: So Anna, with the reduced burn or the reduced OPEX, I know you mentioned in the prepared remarks something about where the cash gets you, but can you just provide an update there in terms of timing of how far your cash runway is now with the reduced burn? Thanks. Dan, thanks for the question. I can speak to that the previous guidance, which you're referring to, we said we had cash runway into the second half of 2020. Yeah, the second half of 2026.

Anna Mowry: And then maybe a final one for Anna. So Anna, with the reduced burn or the reduced op-x, I know you mentioned in the prepared remarks something about where the cache gets you through, but can you just provide an update there in terms of timing of how far your cache runway is now with the reduced burn. Thanks.

Anna Mowry: Got it. And then maybe a final one for Anna. So, Anna, with the reduced burn or the reduced OPEX, I know you mentioned in the prepared remarks something about where the cash gets you through, but can you just provide an update there in terms of timing of how far your cash runway is now with the reduced burn? Thanks.

Anna Mowry: Our reduced OPEX certainly helps us in achieving that target. With that being said, the second half of twenty six is still two years away, and our commercial build out is yet to come. So I think while we have the ability to extend the cash runway further, if necessary, we're not ready at this point to commit to that. Great, thank you. Just for the final point on that, Sujal, I'll just add that the cash forecast that Anna gave you includes finishing the product, building out a commercial team, launching, and starting to get into the revenue ramp before cashing out.

Anna Mowry: Dan, thanks for the question. I can speak to that. The previous guidance, which you're referring to, we said we had cache runway into the second half of 2026. Yeah, second half of 2026. Our reduced op-x certainly helps us in achieving that target. With that being said, the second half of 26 is still two years away. And our commercial buildout is yet to come.

Anna Mowry: Dan, thanks for the question. I can speak to that. The previous guidance, which you're referring to, we said we had cash runway into the second half of 2026, or yeah, second half of 2026.

Speaker Change: Our reduced OPEX certainly helps us.

Speaker Change: In achieving that target, with that being said, second half of 26 is still two years away, and our commercial build-out is yet to come, so I think while we have the ability to extend cash runway further if necessary, we're not ready at this point to commit to that.

Anna Mowry: So I think while we have the ability to extend cache runway further, if necessary, we're not ready at this point to commit to that. Great.

Sujal Patel: Thank you. Just for the fine point. That's just, that cache, just the cache forecast that Anna gave you includes teaching the product, building out a commercial team, launching and starting to get into the revenue ramp.

Speaker Change: Great. Thank you.

Speaker Change: Just for the final point, Matt.

Speaker Change: See you, Jal, I'll just add, just, um...

Unknown Speaker: That cash, just the cash forecast that Anna gave you includes changing the product, building out a commercial team, launching, and starting to get into the revenue ramp before cash out. And those activities of commercialization are expensive, and so...

Sujal Patel: Before cache out. And those activities of commercialization are expensive. And so, you know, the question before it was about if there was any further slipped hypothetically, the runway on cache with elongate in that case because the commercialization build would get pushed out. I just wanted to make sure that I connect all the stuff. Got it. No, that makes sense. Thank you.

Anna Mowry: And those activities of commercialization are expensive, and so, you know, the question before was about if there were any further slips, hypothetically, the runway on cash would elongate in that case because the commercialization bill would get pushed out.

Speaker Change: The question before was about if there was any further slips, hypothetically, the runway on cash would elongate in that case because the commercialization bill would get pushed out. I just wanted to make sure that I connected all those dots.

Sujal M. Patel: I just wanted to make sure that I connected all those dots. Got it. No, that makes sense.

Operator: Thank you. And thank you, and I'm showing no further questions. This concludes today's conference call. Thank you for participating. You may now disconnect. In the name of the Father, and of the Son, and of the Holy Spirit. Amen.

Operator: And thank you.

Speaker Change: Got it. No, that makes sense. Thank you.

Operator: And I'm showing no further questions.

Speaker Change: And thank you. And I'm showing no further questions. This concludes today's conference call. Thank you for participating. You may now disconnect.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.

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