George Kopsiaftis: My name is George Kopsiacis, and I will be your moderator this morning. Joining us on the call today, we have Chair of Lumos, Sam Lanyon, we have Doug Ward, Managing Director and CEO, Barrie Lambert, Chief Financial Officer, and Paul Kase, Chief Commercial Officer. Good morning to you all.
Sam Lanyon: Morning, George.
Doug Ward: Good morning.
George Kopsiaftis: Okay, the team has got quite a bit to cover this morning. We will aim to keep the presentation to around 30 to 40 minutes, leaving plenty of time for questions at the end. We are targeting it finishing at approximately 12:00. If you would like to ask a question, please click on the Q&A tab in the ribbon below and type your question in the box. Today's presentation was lodged with the ASX this morning, and a recording of the briefing will be made available on the Lumos website once available. With that, I would now like to hand it over to Sam Lanyon to get us underway.
Sam Lanyon: Hi, everyone, and welcome to the update this morning. Really looking forward to this and welcome you all. The last quarter has been a time of spending a lot of time in planning, preparing, and building towards the North American flu season, which is coming up. Of course, the team here is going to expand on why we are actually so excited about where we are heading. The other thing that I would like to also say is there was a recent announcement regarding changes at the board level. I would like to thank formerly Larry Mehren's contribution to the business at the board level, and obviously he is going to help us going into the future from the commercial perspective, working alongside Paul Kase and his team.
Sam Lanyon: I would also like to thank Az for joining us from Tenmile. I think that is going to be a good addition to the board as well going forward. Happy to take questions on that at the end, but otherwise I will hand over to Doug Ward to go through the update alongside Paul and Barrie. Thanks, Doug.
Doug Ward: Yeah, thank you very much, Sam. Yeah, look forward to having Az on board and do appreciate everything that Larry did for the company. So thanks again for that. Next slide and then the one after that, please, Barrie. Okay. Listen, I am only actually going to talk about for a few slides here to start, and then we are going to turn it over to Paul Kase because I think that the most important thing that we can talk about is the commercial traction that we continue to move forward here in the US. I am feeling very bullish about where the business is right now.
Doug Ward: I would say we are on a very good track of exactly what our plan was in terms of getting accounts online, getting them to actually evaluate the product, our strategy to go after the top 100. Also, I would say relative to the overall plan, as a business, we are tracking exactly how we would hope we would in the first quarter of this year. Let me go through some of the highlights of some of the numbers here. Since the last time we have talked, we have added 50 new live accounts to those using FebriDx. That in about a four-week timeframe is a great addition to those accounts that are live. Paul is going to speak more about those specifically, of those that have gone live.
Doug Ward: Again, right now we are seeing really good momentum of moving from that validation stage and that evaluation stage into that go live stage. You have to continue to feed that funnel, and that is what Paul, Crystal, and Tommy, as well as the PHASE team are doing all together in driving what we call the evaluations out there, where they are validating both the clinical as well as the economic merits of bringing the test online. Great news, 80 new sites. Now we are up to 485 sites that are in evaluation with us. We continue to build this momentum. I have been in this field of diagnostics for over 35 years, and without a doubt, the hardest thing to do is to introduce a brand-new product that quite frankly, what you are replacing does not exist.
Doug Ward: There is no test that does what we need it to do with FebriDx. Getting people aware of that, getting it brought in, and then getting it paid for, that first amount of time to get that undergoing is really hard. Boy, I cannot tell you how thrilled I am with these results right now with this number of live sites and the number of evaluations that we have going on right now. Paul will talk more about the 13 of the top 100 now that are either live or in evaluation for us. Moving quite nicely in that part of our strategy, that is the, if you will, the whale strategy. These are very large accounts. They account for something like, I could say, 40% of all the volume out there in the market. We already have 13% of these top 100 in evaluation or live.
Doug Ward: Great outcome so far in that regard. Lastly, I will just say, hey, you know what? We are sitting here in a great position from a financial standpoint. One of the critical things that we did when we secured CLIA waiver was to also do the capital raise. At that time, I think, there were people who questioned, "Hey, do you need to do a capital raise at this time?"
Doug Ward: I would say, given what it takes to launch a new product into the US healthcare system, and knowing that it is a seasonal product as well, most of our sales are not going to happen until January through to April. That does take cash in order to implement our plan. What I would just say is right now, we are marching along exactly in sync with the plan that we put forward. We are feeling very good about where we are. Next slide.
Doug Ward: I would just say there is a total method to this madness, if you will. It is very methodical. It is about building that awareness, getting people to validate this test, and then getting them to go live. Really, I would say that first part is the hardest part with a great test like FebriDx. It is just getting people to understand this thing exists, and it is available to them. Once people start to evaluate this product, the feedback coming in has been overwhelmingly positive. From how easy it is to use, how easy it is to read, what it is to use it and get a result from the patient, and then to get reimbursed as well. We are feeling very good about once people are aware of it, they quickly validate it, and then they tend to go live pretty quickly here.
Doug Ward: We feel good about our path here. Next slide. Then again, this just kind of puts it on one slide with our announcements that we have given over the last few months here about where we have gone. Remember, this product did not even hit the shelves as a CLIA waived product until April, right? We secured it at the end of March, and we already see this kind of traction in the marketplace today. I think this is terrific news. I would also have you on this slide, look over on the right-hand side about the number of ARI visits that these sites have the potential to deliver with FebriDx.
Doug Ward: This is the type of volume that certainly if we can get a vast majority of these people using it for the majority of their patients with ARI, we will certainly, I think, exceed the expectations that I have relative to our revenue going forward with the product in year 1. With that, I believe, next slide, we are going to pass that over to Paul, who can give you some really nice detail in what is going on out there in the field.
Paul Kase: Doug, thank you, and I appreciate everyone's attention and very excited to speak with you and walk through some slides. If you can go to the next slide for me, Barrie. I am first going to start with marketing and some of the updates and kind of our build surge expand, and then I will get into more detail, as Doug has explained, around the accounts that are validating and go live. First, and this slide you all have potentially seen before, but it bears repeating. This ecosystem is working. It is accelerating adoption. PHASE Scientific, obviously our exclusive distributor, doing a great job with us in the field. AcuityMD is all about claims data and intelligence around there, as well as targeting high-volume accounts. PRO-spectus, as we move left to right here, a great partner to us as far as reimbursement support.
Paul Kase: They are still holding the hands of our new customers, helping out with site onboarding, and billing set up for those customers and demonstrating in many cases the dossier for medical necessity to the payers. So great job. Then CG Life, which we have discussed briefly. That is our marketing partner from the standpoint of PR and brand and lead generation. Just to touch base on that ecosystem, I will go on to the next slide now, Barrie. From a standpoint of marketing, it is about building and then jumping in with the surge around respiratory season and then expanding. This plan is obviously aligned to our respiratory season. On the left side, from a standpoint of build, we are very pleased with the outcome of how we positioned the product over the last quarter. The awareness, the education, and the messaging that occurred. Multiple LinkedIn campaigns.
Paul Kase: I will get into some of those analytics in a future slide. Very pleased with the outcomes. Obviously media going into market now around CLIA waiver, which obviously is now targeting the top 100 and really giving us a much more expanded footprint for FebriDx to target. I feel like we have completed the build. You are always still building, but in this case, from a standpoint of positioning and messaging, we are there. Now we go to surge. Surge, in my opinion, is pretty much now through the end of December as this respiratory season campaigns kick off. We are very busy with conferences, with trade shows. So we are in front of customers as well as the actual marketing campaigns that we have commenced. Then initial customer case studies.
Paul Kase: Some initial VOC, if you will, for those folks that have come on board and are experiencing positive outcomes from FebriDx.n Finally, the expand. Expand is basically taking those accounts that are in network rollout to make sure it is in standard adoption, right? So making sure that all sites have been accounted for with a particular urgent care organization that has come on board.
Paul Kase: We also are able to go back during expansion and use reference accounts and revisit and retarget some leads that may not have pulled the trigger at the time during our surge, if you will. Then we are employing all of our sales, the tools that we have created, the marketing resources we have put through, and taking advantage of that entire toolkit. I think the UCA conference in April is going to be extremely robust based on the activity that we are already experiencing. All in all, the awareness is building before the season.
Paul Kase: It peaks, then we carry that demand into 2027 in January. The awareness engine is important. So we are talking about paid media, earned media, and endemic media. As I talked about with LinkedIn, the next slide will give those analytics. Very proud of the fact that we created a ton of awareness before the surge even begins for interested physicians and providers. Then we move into a paid search. We have already embarked on this with Google Ads. Already seeing decent traction there. Account-based media, that is also called account-based marketing. That is where we are basically guaranteed leads from named target accounts. So we are sticking with our top 100, but we are doing a very focused campaign on FebriDx within those executives, providers, nurse practitioners, all of them within a very, as I said, a very focused approach. That just kicked off.
Paul Kase: We are very excited to see those leads come in and certainly keep the market posted. Endemic media is really putting FebriDx from a native standpoint in an environment that supports it. In this case, Becker's Healthcare would like to work with us on a webinar that might leak into January of next year. We will put our key opinion leaders on there and basically build on the channel of urgent care that already is trusting. We are excited about that too. Earned media is organic, right? I am excited to have additional slide on it, but we have a customer already that has put FebriDx on a TV news segment. More to come on an additional slide.
Paul Kase: The Pathologist article, I did a podcast with Diagnosing Dx, and we are also looking at other independent authorities like CIDRAP that are interested in helping with creating awareness and education around FebriDx. All of them running together through this season is basically handing us qualified sales leads in the urgent care space. Next slide. As I said about LinkedIn and our analytics around it, an example on the left side is one of the campaigns, and this was the clinical ad. At the top there, when we say two campaigns, same result, clinical messaging as we ran two campaigns was the clear winner, especially well over almost double LinkedIn's benchmark of click-through rates. As you can see with both campaigns, we are averaging almost 7,000 impressions.
Paul Kase: The click-through rate is at 0.75 and 0.7, which is well over LinkedIn's benchmark, but those were the tire campaigns. The clinical ad itself really resonated. That was right around 1% for just that ad. The takeaway is we were very pleased. This was an education awareness. It did actually produce leads. The idea was to get clinical leaders to respond and then lead with that creative. That is what occurred. Next slide. In the midst of LinkedIn campaigns and Google Ads, as I said, and account-based marketing, we are also still meeting customers face-to-face. This was an EDM that came out at the Texas Nurse Practitioners Conference, the Northeast Regional Urgent Care Association. Where I am right now, it has been a good long day, but we are at the Urgent Care Centers Congress in Orlando.
Paul Kase: Myself and my Director of US Sales, Tommy Hall, had a fantastic day today. Much more of a networking event with executives in urgent care. We are actually here right now. In the middle there, we decided to have a little fun with it. I know it looks a little cartoonish, but we are at these shows, and in this case, it was a Texas nurse practitioner show, and then the clinicians wanted to be part of it. We are putting FebriDx in their hands, and they were having a lot of fun with that and some swag. We have been showcasing some of the pictures of customers who are involved in the protocol process and the approval process. We just try to make it a bit fun at the same time. A very successful three shows. Next slide.
Paul Kase: We talked about earned media, and this is a perfect example. I want everyone to listen to me here. This is just the start. This is just the start of making a huge difference. Ohio State University Health System was extremely interested in the product at the Urgent Care Association meeting earlier this year. They decided we are going to implement it in all of our sites immediately, and we are trained. The initial first 2 days, I got an email and said, "This is unbelievable. Our patients are so pleased. We are already feeling like our Yelp ratings and the physician ratings are going to be increased. We would like to go to the local news and run a segment." They did it on their own, which is interesting. I found out about it by seeing it.
Paul Kase: It is an excellent clip that we ran through their local news right around 6:00PM, and this was a couple of weeks ago. Dr. DeLaTorre, who is very interested in doing more for us from the standpoint of consultant, had a nice part of the clip. What does it mean? That coverage did quite a bit for Lumos and FebriDx. One, it was validation from a very large university health system. It helped to showcase the novel solution that FebriDx is. Our value proposition is to meet an unmet need, and that is exactly what this clip did. One of the best parts, too, is it created awareness and interest from other healthcare organizations. Ohio State University Health System got a bunch of calls saying, "Hey, we have been looking into this. Tell us more about it." So they became a reference account.
Paul Kase: It is almost like an organic now, a key opinion leader with Dr. DeLaTorre. It is very exciting. It says 2 in Ohio. As of today, that is now 3. We have almost created a competition for differentiation in using FebriDx just in the state of Ohio. The plan is to take that recipe and bottle it and get to the other news centers where we have other larger accounts in different states and do the same thing. We are really excited about it. Next slide. If my passion is not coming out enough, it is going to come up even more.
[Unknown Speaker]: Michael?
Paul Kase: That is okay, Brad. We have provided experiences in the past, and some of these anecdotes and success stories, but this one is big. Things like number 1, where we prompted further evaluation, where a patient tested negative for COVID, flu, and strep. Since they were going to send that patient home thinking it was viral, but in running parallel FebriDx, they got a positive result. They then said, they could not figure out source, so they brought in an X-ray and the patient had a pretty severe case of pneumonia. That is just a wonderful story of FebriDx helping out. The next, same thing, 2 days into a sinus symptom. If they had run FebriDx, they would have sent the patient home thinking it viral.
Paul Kase: Instead, they ran it, pretty nasty case of sinusitis, got the patient on an antibiotic, a proper use of the antibiotic, and avoided a return visit. Number 3, bolded on purpose, that is back to my point about the Ohio State coverage. In Ohio, an urgent care, a large urgent care, said patients are coming in and asking to be FebriDxed. What is really interesting about that is that means, 1, they saw the news clip obviously, but this is consumerism. This is a ground swell. When you have awareness reaching a patient and them coming in to demand the test, that is a perfect scenario. To achieve that, in my opinion, after 6 months, is incredible. We are really pleased about that. Next slide, please. Okay, let us talk about accounts validating going live.
Paul Kase: I am going to head back, go over some of what Doug had given to you already, but at the same time go into a little more detail. Next slide, Bernie. We still have our four-stage framework, and if you wonder why the qualified opportunities is kind of grayed out, it is because it is a very, very significant number. I will say that again. It is a huge number. We are not counting folks who call us, want to learn more, want to talk to us. I think that is great, and those are all in that section, and the number is gigantic. Let us zoom in on those accounts, though, that have called us. We have gotten into conversations, and they have embarked on evaluation, and that evaluation is both clinical and economical.
Paul Kase: I will tell you, it is a little more economical than clinical at this stage, but it is now up to 485 sites in active evaluation. Again, I am not talking about large urgent cares that are kicking tires right now and considering it. I am talking about ones that have actually put a product in their site. If they are, say, a 50-site urgent care and they have put it in four or five of them in five different states, that does occur because they want to look at the economic validation of it. Very pleased that eight of our top 100 are in part of that 485 sites that are evaluating FebriDx right now. We then move forward to Doug's mention 265. Very proud of that number, 29 states now.
Paul Kase: Five of those are in the top 100. That is not five overlapping, that is eight plus five. Okay? Eight on the evaluation, five in going live, and we are adding more to it with each month. We will keep everyone posted on the framework as so all of our investors here can follow this commercial traction. But really pleased at where we are right now after 6 months. Next slide. So of the 1,300, we are talking about evaluations right now. I will just give you an insight into these three groups that are new since the last update I supplied you all. The reason why I want to do that is because it is not just about the urgent cares.
Paul Kase: We are staying very focused on the urgent cares. But if you look at group 1 in the Southern US, a nonprofit health system with 25 hospitals and 400 locations. Okay? When you look at that size, it does not mean they are going to stop with urgent cares, right? It means there is a bigger opportunity there when it comes to these health systems. The same with group 2 in the Midwest, 65,000 caregivers, 170 locations.
Paul Kase: Again, they are in the top 100 because they have 30 plus urgent cares. Then finally, with group 3, in the Northeast, huge physician-led multi-specialty group, very high volume locations, 50 plus. If you see at the bottom, basically, they have those 120 plus urgent care sites. 50 of those are evaluating, and it equates to approximately 300,000 ARI patients a year at just those 50 sites that are evaluating. Really happy to share that with you. Next slide. We talked about evaluation. Now we are going to talk about the latest and greatest since my last update around standardized adoption. A Midwest academic health system has gone fully standardized, just a standardized adoption in 20 plus outpatient settings.
Paul Kase: The network, though, is over 100 locations, and that network sees over 2.5 million outpatient visits. We are excited to see where that is going to continue to grow. In the middle, under full network deployment, where it says Northeast Primary Care Network, this is a primary care account. The reason I want to bring it to everyone's attention is to make sure everyone realizes, yes, a very, very strong focus, which will remain on urgent care. But primary care is gaining some traction, everybody. It is. We have a 12-plus site primary care group in the Northeast with 300 plus providers, just primary care providers. They saw FebriDx. They have already been trained. They immediately have deployed it. They are looking at right around 100,000 ARI visits in those 12 sites. It just shows where primary care shouldn't be forgotten. Right?
Paul Kase: That is what I was talking about health systems, too. You have urgent care, and they easily can bleed into the primary care side as well. Now we get to WellStreet, and I am going to save some of the questions that I am sure are waiting for me around WellStreet. I personally have very positive conversations with WellStreet on a very consistent basis. In fact, I even talked to WellStreet today. What I would like to basically tell you is our target for WellStreet to expand in all of their remaining locations by flu season is still intact. I am still extremely confident the relationship is very positive, and nothing has changed from that standpoint of target and what we plan to accomplish. Next slide, please.
Paul Kase: You guys have probably seen this before, I believe, but just to remind you from a standpoint of US respiratory season, as we have said, it is the surge and the build-up, and everything is going to plan. Everything is going to plan. All right? We are anticipating with what we have inventory. We have 750 now sites that are live or evaluating. As I said, our surge at phase 2 of marketing is already reaping benefits. We expect a very robust season that starts in the US pretty much after Thanksgiving and extends through March, sometimes even later March. We will see where this one goes. Just wanted to touch base again on respiratory demand and how it arrives and where it is going. Okay. I believe, Barrie, I am going to send it over to you for our financial results. Thank you, everybody.
Barrie Lambert: All right. Thanks, Paul. Lots going on, lots of exciting stuff in sales and marketing. Thanks, man. Just a couple of slides on the financials. One on revenue and one on cash flow. The first one, just an overview of revenue for Q1. Just to remind everyone, all these numbers are in USD. Please make sure you have a read of the quarterly report. It has a lot more information around revenue and the cash flow as well. Just Q1 revenue. On the chart on the left here, we have the quarterly revenue going back to Q1 FY 2026, and on the right just a breakdown of the revenue for the quarter. On a like for like basis, you can see product revenue was up 224% on the prior corresponding period, and that is excluding the one-time exclusivity fee paid by PHASE in July last year.
Barrie Lambert: On a like for like basis, up 224%. Within that number, FebriDx was up 351% over the first quarter last year. On the services side, revenue was USD 1.5 million. That was about half a million less than the prior period Q1 last year. The main reason for that was less IP revenue we recorded on the contract with Hologic. It was about half a million lower than the prior period. As you will see in the quarterly report, there are some comments on the project with Hologic. It was a little bit less work in Q1, and we have sent them a proposal, and we are just waiting for them to respond on that proposal for additional work on that project. Across the quarter, we had about 12 projects during the quarter, including Hologic, Micro-Pak, and work for TeleMedVet and Aptatek as well.
Barrie Lambert: As Sam and Paul have said as well, and Doug, obviously the company is a seasonal business with Q1 and Q2 being the quieter months, and Q3 and perhaps the first part of Q4 will be the higher sales months with the US flu season. Just a couple of comments on the cash flow. Moved over to the waterfall approach here just to show the movement in the cash flow. Please read the quarterly report, which has a lot more description. Opening cash at 15.4 and then closing cash at 11.8 at the end of September. Cash receipts there you can see from customers, USD 1.5 million, versus the USD 2 million revenue we reported. The difference there is just the prepayment from PHASE. As everyone will remember, after the CLIA waiver in April, there was a USD 5 million prepayment from PHASE.
Barrie Lambert: As we ship the product, we record the revenue, but the cash has already been received in Q4 of FY 2026. Payments to employees and suppliers was 6.1. As I mentioned in the quarterly, there are investments in there. There is USD 1 million investment in inventory as we build ahead of the US flu season. There are investments in sales and marketing, as Paul outlined today, investments in the pediatric study, and also there are investments in the build-out of the facility at our new facility in Carlsbad, in California. Just a couple of other comments on the cash flow. Included in financing is the exercise of options by Ryder Capital.
Barrie Lambert: They exercised 26.1 million options at $0.07 on 15 September. We just thank Ryder Capital for their continued support. That is included in the financing number there. Closing cash, $11.8 million at the end of the quarter. I think that is it, Doug. I am happy to take questions at the end, but I will pass it back to you.
Doug Ward: Yeah. Okay, terrific. Next slide, please. I just want to give two quick updates. One is on the pediatric study. We are at about roughly 400 patients enrolled, and if you recall where we wanted to be by year-end, that was more near the 700 to 800 number. We are, I would say, less than the number we need from a total, and that obviously directly impacts the number of bacterial positive as well. We are doing a few things with BARDA to basically address this. Number one, we have brought online three hospital emergency departments to be in the study. Before, we were really just trying to use pediatric primary care offices to do the study, and unfortunately, we are just not getting the patients enrolled that we want.
Doug Ward: By going to the ER here in the US, where these will all be pediatric emergency departments, we think that that will have a profound impact on then having more pediatric patients enrolled in the study. In addition to that, in lockstep with BARDA, we have approached the FDA to talk them through where we are in the study, and then steps that we believe we could take in order to improve this and try to get this back on track from a number and/or timing of when we can complete this study in collaboration with BARDA. We will have that meeting with the FDA and BARDA at the end of this calendar year, and certainly we will give everyone an update at that time on that outcome. I would stress, okay, because I do not want people trying to read between the lines, if you will, of this.
Doug Ward: The performance of the test is excellent, and we are seeing very, very good performance in regard to people utilizing the test and getting the results that they would expect and so forth. Right now it is just a volume game for us. I do not want to leave anybody with an interpretation here of, oh, there is any performance issues. The performance is great, as quite frankly as it always is. It is just a volume game, and we are putting in place with BARDA some things that hopefully can address that pretty quickly here. That is the update on pediatric. Next, Barrie.
Doug Ward: It is just, listen, you know that at the end of Q2, the very end of Q, no, I am sorry, the end of Q4 last year, we did prepay $2 million from the capital raise in terms of the renovation that we have on our manufacturing facility that will allow us to hit the minimums here in the contract. That is going according to plan. It looks very positive that we will be in that facility and operational by the end of this calendar year, which was the plan after the capital raise. So great job there. We will continue to obviously need to spend some cash on that renovation. We did spend some in Q1, and we will spend a little bit more in Q2 on it, and then we will be up and running in utilizing this facility here in the US. Then final slide, Barrie.
Doug Ward: Just to reiterate, listen, this is all about one thing, everyone, and we know it, and we feel good about it. This is about driving revenue. It is about getting customers. Okay? So building the awareness. Now, I get it. A lot of people probably are like, "Hey, we do not necessarily always want to hear about all the marketing stuff. We want to hear about final sales and so forth." But to be quite frank, without doing the marketing, you do not get the customers, you do not get the sales. It is a pretty straightforward recipe for success. I feel great about CG Life and the job that Paul and our new marketing staff have done in quickly driving awareness out there and again, getting that pipeline up and running.
Doug Ward: Having 485 sites under evaluation is, that is stellar, right, from a standpoint of the months that this product has been on market. Now, we kind of have two paths then. One is to get them live, and the other, though, is to also, especially in the top 100, to get that utilization up as high as possible on all ARI patients. The team is spending and investing time and resources in driving that hard. Then I would just say, right, a couple of things that you can expect to hear from us when we have our AGM coming up in November here. Peak season.
Doug Ward: If you get on the CDC site, it is still in a pretty minimal category of where flu is here in the US, but getting all of these sites up and running and getting them prepped, ready for that peak is what we are focused on. End of year, I will give you an update on the pediatric study, as well as up and running and having our new facility totally validated and operational. With that, like I said, listen, to me, things are going extraordinarily well, very positive, and exactly according to the plan that actually we have laid out. So we feel great about that, and we look forward, George, to questions that people may have.
George Kopsiaftis: All right, great. Thanks, Doug, and thanks all for your quite extensive update. We do have a few questions, so why don't I get started? Actually, firstly, there was quite a few questions on WellStreet, but I think Paul's quite adequately answered that, so I won't pose that question again. Second question, sites can onboard but just have FebriDx sitting on the shelf to be used hit and miss. Can you say the percentage of onboarded sites that have a standardized mandated workflow? Is it over 50% or is it under 50%?
Paul Kase: I can take that. Each account is a little different, but I'd say it's over 50%. Let me just explain per Doug's point, that utilization is key, and it's not necessarily mandated. You can't necessarily always assume there's going to be a standing order of FebriDx within those accounts. The goal is to get them to a standing order. To increase that utilization, the more ARI patients, the better. As far as the accounts and the top 100 accounts that we've identified, yes, it's more than 50%. Again, that utilization, though, hasn't really kicked off because we haven't had the flu season yet. We'll continue to analyze that data and work with those customers to drive more patients and more ARI.
Paul Kase: Great. Thanks, Paul. Next question, does the company have a long-standing contract with Atomo to supply you kits, or could the company change at any time to receive future supplies from, says USA or opposition? You're probably mentioning competitors.
Doug Ward: Yeah. I'll take that one, and feel free, Barrie, if you want to jump in as well. Number one, we have a contract with them, and it is a lengthy contract. We feel great about that. We're really, really pleased. By the way, that contract also means that we're the exclusive partner with them relative to a FebriDx test. That's exclusively with us. We're, quite frankly, very, very pleased with that relationship that we have with them. We're both trying, I think, to maximize the opportunity for both of us here, which is terrific. Having said that, and I'm just going to be direct, it's really important to understand that FebriDx is an FDA-cleared product, which to change that product, meaning to not use, say, the cartridge from Atomo.
Doug Ward: If I were to do that for our existing label and product, that would require a significant amount of data and work with the FDA and therefore expense. That would make no sense to us that we would do that for the current label. Having said that, while we have an exclusive relationship to use our technology with Atomo, if we chose to go after a different label with FebriDx, say, the chemistry component and so forth, that would, one, require a new clinical trial and a new opportunity for us. In that setting, we could theoretically choose to use a different antibody, a different cartridge, or other components or whatever. There is nothing that forces us that we must use that going forward.
Doug Ward: But let me tell you, we are extraordinarily pleased, and we are seeing the results with those customers that are going live today, which to me is the most important thing than worrying about something in the relatively future, if you will. Hopefully, that answers your question. I do not know, Barrie, if you want to add anything there.
Barrie Lambert: I think you have covered it, Doug. We have a multi-year contract with Atomo for the supply of the cassette. As importantly, as you said, that contract gives us exclusivity over that cassette in our field, so in the bacterial versus viral field. So, that ensures we have the exclusive use of that cassette and for our tests, which is important. So, I think you have covered everything else. Thanks.
George Kopsiaftis: All right. Thank you. The next question is a multi-part question, so I will ask it in each of the parts. How many FebriDx tests were shipped in Q1, and what is the average test per live site per month?
Doug Ward: Yeah. Number one, I do not think we give the number of tests because that would in the end give away our price for the test, which we consider to be proprietary with PHASE Scientific at this point in time. So we actually do not provide that. We give a revenue number for the month.
George Kopsiaftis: All right, thanks.
Barrie Lambert: Most of the product revenues for Q1, George. So product revenue was USD 564,000 for Q1. Most of that is FebriDx sales in the US. As Doug Ward said, under our confidentiality obligations with PHASE Scientific, we cannot give away the transfer price. It would be breach of contract.
George Kopsiaftis: All right. Thank you. You actually answered the second part of the question. The third part of the question was, how much of what PHASE Scientific bought has actually been used by sites, and how much is sitting in PHASE Scientific's or sub-distributors' inventory?
Doug Ward: Yeah. Let's say, number one, we don't provide that market information. That is information, though, that is shared with us both from our partner PHASE Scientific, but also to PHASE Scientific from their distributors. We do have a look at what is shipping and where it is. The great news here is that we have some great partnerships with great analytics that gives us visibility to what's going on out there. We feel very strongly that, again, we're marching according to plan. What you should know is we are building inventory. We, within Lumos, we expect most of the volume to go through from January, February, March.
Doug Ward: You can imagine that we're establishing significant inventory this past quarter. We'll continue to do it next quarter, and we'll continue to make it in Q3 as well. Understand now that will peak and then come January, we want to see that volume start to really start to use up that inventory and that stuff being shipped out to PHASE Scientific. That's how that will end up working.
George Kopsiaftis: All right. Thank you, Doug. Just following on another question, in a similar vein, what's the low and the high range for expected FebriDx sales for the flu season running October through to February 2027?
Doug Ward: Yeah. We just don't provide guidance, guys, at this stage in the company. It's the first year of the launch of the product, and quite frankly, it's interesting because at most other companies that I've been at, whether it's the Roche of the world and others, they don't even budget for that brand-new product in that first year because it's such an unknown entity that you're like, "Hey, I'll take the upside when it comes, but I also don't want to be stuck signing up for a number that I can't deliver." We're different. We're a cash flow negative company. Everything in our mind is riding on our revenue numbers and we're doing everything we can to drive that as hard as we possibly can to maximize revenues this year, but we just aren't going to give out a guidance number or range.
Sam Lanyon: George, can I jump in too? Just want to reemphasize something that we said back after the CLIA waiver that we know that leading indicators are really important, not just for management, but also the board and also for shareholders. As Doug Ward has said, it is a new product in a new market, and we have said it is going to take at least one flu season, potentially two, before some of these numbers become relevant to then make decisions off them. So I still think it is a little bit ahead of where we are today.
George Kopsiaftis: Great. Thanks, Sam Lanyon. Next question. You have said that commercialization is running ahead of schedule. Do you still see the minimum order quantities under the full PHASE agreement as achievable?
Doug Ward: Yes. Without a doubt.
George Kopsiaftis: It is easy.
Doug Ward: Listen, we want to do better than that minimum guidance.
George Kopsiaftis: It couldn't be easy.
Doug Ward: Let me just say I want to do better.
George Kopsiaftis: Yeah.
Doug Ward: I won't give guidance around it, but we're feeling good.
Sam Lanyon: Yep.
George Kopsiaftis: Great. Next question. What is the percentage of customers that are switching from potential trials to active sites? Also, what is the expected time for a company to start trials to full adoption?
Doug Ward: Yeah, let me take the first one, Paul, and you take the second one, which might be the timing, which I have an opinion on as well. Listen, the deal is the key one is the top 100s, right? They are the largest customers, the ones that are going to swing and allow us to hit the numbers, I think, the best. It will be very lumpy, I think is what I want to say. You could have it where, okay, someone goes live and take WellStreet, for example. Okay, they are huge. I do not know if everybody knows this, they are well up over 200 urgent care sites because they keep buying other urgent cares. I think when we were talking to them, maybe they were around 140. I could be wrong on that, Paul, but it was around 140.
Paul Kase: That is correct.
Doug Ward: Okay, we have got the 44 or so online, and now, the next wave of this is probably going to be a very significant bump in that number. We are in that law of small numbers here where, okay, if you will, on one hand I am saying I am pleased with 265, but it is also a small number. Bringing in 100 accounts, okay, that is a huge percentage, right? Like I say, it is just lumpy. I think it will stay that way through this entire flu season. That will be a tough one to go, "Okay, can I look at the funnel and extrapolate when and how many will come online?" I think that would be hard to do. Paul, second one there?
Paul Kase: Yeah. Can you read the second question to me again?
George Kopsiaftis: Yeah. It was, what is the expected time for a company to start trials to full adoption? I think it is asking from start of trials to full adoption, what is the lead time?
Paul Kase: It does differ, but I will tell you, if they want to expedite it could be in that 60 to 80-day range. Then you also have, by time you get the economics and prove those, and you have put it into your, what they call an EMR system or Epic, there can be potentially some delays there. So it is anything from 60 days to, I am going to argue, 90-plus days from a standpoint of evaluating and going into a standardized adoption. Does that answer your question, George?
George Kopsiaftis: I think so, yeah. Thank you.
Paul Kase: Yeah. It is the economic validation. The economic validation holds up because you are running a patient, you submit a claim to the insurance company, and then it comes back, and that is not instant. Things like that take time. We are obviously truncating as best we can, and luckily the WellStreet's of the world are ahead of this. Anyway, we will keep trying to truncate those timeframes where we can.
George Kopsiaftis: All right, great. Thank you. This is a question that has been posed by a number of people, and I will summarize it, but basically it is asking, have you got sufficient cash to get through the current flu season?
Doug Ward: To get through the flu season? Yeah, I believe.
Barrie Lambert: Yes.
Doug Ward: Absolutely, we do, as long as we are selling FebriDx out there, which you can see we have 265 live accounts, so we are feeling very good about it.
George Kopsiaftis: All right, great. Thank you. In terms of repeat orders, are you seeing repeat orders from live sites?
Paul Kase: Yes.
George Kopsiaftis: Yeah.
Paul Kase: Yeah. Now, again, per Sam's point and all of our points, it is a little early here, right? We are not even in the heart of the season. But right now, as far as a leading indicator and looking at repeat orders and satisfying customers, we absolutely are seeing.
George Kopsiaftis: Okay, great. Thank you. I think Barrie answered this one earlier, but the question is, will Lumos start to increase its inventory build as the flu season starts to really ramp up?
Barrie Lambert: Yeah. Yes is the short answer. We need to build inventory ahead of time. Obviously, we need to get the raw materials in and then manufacture the product. We made an investment of USD 1 million in inventory in Q1 ahead of the flu season. There will be an investment in inventory in Q2, probably a little bit less than that number, but we do need to make sure we have enough inventory, finished goods on hand to meet the sales forecast for the end of, I guess, picking up in earnest late in Q2 and then through Q3, and then beginning of Q4. The short answer is yes, George, I expect an investment in inventory in Q2.
George Kopsiaftis: All right, great. Thank you. Next question. Are there sales opportunities in other countries outside of the US, in particular, April to October in the Southern Hemisphere?
Paul Kase: I will take that one. We continue to explore international opportunities. Obviously, Romania we put on, Portugal just came on board. It is just right now, it is a very strong focus on the US, and we feel like once that success is proven, we can start looking at some other countries. Generally, that is how it works, you prove it in the US and then you can expand from there. Do not get me wrong, we are still looking at new countries, putting on new countries with FebriDx. It is just not a ton of utilization, at the same time, it is a resource issue. We would rather put all, if not most, not all, of our resources into the US at this time.
Sam Lanyon: Yeah, George, I think it is okay to say that. A few of us have worked in diagnostics for a very long time, and new product, new market, I think sometimes there is this impression that because the US is actually quite hard to get through the FDA and spend the money and the time and the clinical trials, then you have to do the commercialization and reimbursement, all those sort of things. There is sometimes a request for us to focus on other markets where maybe the regulatory is a bit easier to get, faster to get, et cetera. Every market is different and the commercial journey is different, therefore the investment in time and also frankly the distraction can be high.
Sam Lanyon: I think it is good for us to actually say, we are focusing on the North American market, in particular the United States, and we have reimbursement in place. We have the right labeling, and we are good with that. The rest of the world situation, I think, Doug, you mentioned this last time we had an update. Frankly, without reimbursement in a lot of the markets that we are talking about, the potential over-the-counter application becomes a bit more interesting where when you look at what Paul presented, where there are patients asking for the test in the US. We have not had that before.
Sam Lanyon: I do not know, in my diagnostics career, and I think in Doug's diagnostic career as well, not very often that you have patients that are motivated to ask for something, that then creates the opportunity for over the counter. Now, we are not going into that headlong and spending a huge amount of money and time and all of that, but we are investigating it. As we get more firm on that, we will obviously speak to our shareholders in the market.
George Kopsiaftis: Great. Thank you, Sam. Next question. Have there been any additional FebriDx purchases since the last order announced on 4 August 2026?
Paul Kase: FebriDx purchases?
Barrie Lambert: These are the purchase orders from PHASE, I think.
George Kopsiaftis: It doesn't specify that, but I'm guessing that's what it's asking.
Barrie Lambert: Yeah.
Paul Kase: We should-
Doug Ward: I would just say, sorry, guys. I would just say, hey, we always want to follow our continuous disclosure obligations around size orders and all that kind of stuff. So we'll continue to demonstrate that as we need to and announce anything relative to any orders of significant size and so forth.
George Kopsiaftis: All right. Thanks. This one's for Barrie. I don't think he's going to be able to answer it, but you've provided cash flow for the past quarter. You have your plans locked and loaded. Where is the cash flow forecast?
Barrie Lambert: Well, it is an internal forecast, George, and we forecast and re-forecast regularly, which I share with the leadership team and the board of directors. That is where it is. I do not think we are providing guidance on cash flow forecast the same as revenue.
George Kopsiaftis: Yeah, fair enough.
Sam Lanyon: And George, just to once again emphasize it again, the forecast, you can imagine when we were scaling the capital raise and going through that planning, we did not have one forecast. We have a whole bunch of scenarios that management works with the board on looking at upside case, downside cases, and all of those things. And that is our job is to have judgment call based on what the leading indicators are showing us. A lot of the questions that the shareholders ask us, trust me, there is a lot of those questions and answers that are being discussed internally. That is what we have to do. New product in new market, there is a judgment call.
Sam Lanyon: And actually, Paul, it probably starts off with what you said right back at the start, which is the product is working, people want to use it, and they are getting a good experience. They are validating the clinical side and they are validating the economic side. And so a lot of those things are good leading indicators for us. But the actual amount of product that we need and the sales that we have, frankly, it is going to be a little bit linked to, or a lot linked to the flu season and when it actually takes off.
George Kopsiaftis: Right. Thank you. All right, we are just down to the final 2 questions. When WellStreet buys sites, does it then come under their mandate to use FebriDx first?
Paul Kase: The goal in conversations I have had is, recently it is in the public domain. They just purchased 36 sites from Novant Health in South Carolina, falls under their Prisma Health line. So WellStreet now, for example, has 60 sites under their Prisma Health joint venture in South Carolina. The goal is yes, if and when WellStreet expands that any site that they are either put up their own or they buy, would still fall under the same requirement and protocol of how they use FebriDx in their clinical pathway, in their treatment protocol.
Doug Ward: Just so that we set the expectation, which great question and good answer from Paul Kase there. I think it is like anything, things are integrated, right? They will prioritize those sites and they will also prioritize those systems that they need. So there are systems and there are also processes and clinical algorithms and so forth. So there will be a prioritization to these things. So just because they buy them and they have said that they plan to do that, I would say we do not have visibility yet. Okay, how quickly would that actually happen, and where on their priority list is that? That we do not have visibility to yet.
Paul Kase: Yeah. That is good clarification, Doug Ward. I will add one thing, and that is, any urgent care, these large multi-site urgent cares, they all operate on a similar mantra, though. They bring a product in, they do not bring it in for 50 of their 100. If they bring a product in, it is standardized through the system. But to Doug's point, there is timing, there are other things. But it is not as though 5 sites over in Pennsylvania can order it, but they do not want the other. They do not do it that way. If they are going to bring it in, they bring it in for their entire organization.
George Kopsiaftis: Great. Thank you. All right. Final question. What is the shelf life of FebriDx?
Barrie Lambert: Two years. When it comes out of our facility, George, two years.
George Kopsiaftis: Two years. Okay. Excellent. All right, well, there is no more questions. What I might do at this point is thank Doug, Sam, and Paul and Barrie for your extensive update. And thank everyone else for participating. At this stage, I would like to ask everyone to now disconnect. Thank you very much for your time. Thank you.
Sam Lanyon: Thanks, everyone.
Barrie Lambert: Thank you.
Operator: Goodbye
