Singular Genomics Systems, Inc.

Good day, ladies and gentlemen, and welcome to the Singular Genomics Systems Inc. Third Quarter 2022 Earnings Conference Call. At this time, all participants have been placed on a listen-only mode. The floor will be open for questions and comments following the presentation. If you wish to enter the Q&A queue, please press star 1 on your phone at any time. It is now my pleasure to turn the floor over to your host, Philip Taylor, Investor Relations for Singular Genomics. Sir, the floor is yours.

Thank you, Operator. Presenting today are Singular Genomics Founder and Chief Executive Officer, Drew Spaventa, and Chief Financial Officer, Daylan Meter. Earlier today, Singular Genomics released financial results for the three months ended September 30th, 2022. A copy of the press release is available on the company's website. Before we begin, I would like to inform you that comments and responses to your questions during today's call reflect management's views as of today, November 7th, 2022 only, and will include forward-looking statements and opinion statements, including predictions, estimates, plans, expectations, and other information related to our financial and operating results, plans, and strategies. Actual results may differ materially from those expressed or implied by these statements as a result of certain risks and uncertainties. These risks and uncertainties are more fully described in our press release issued earlier today and in our filings with the Securities and Exchange Commission. including our most recent Form 10-K or 10-Q, the Form 8-K filed with today's press release. The SEC filings can be found on our website or the SEC's website. Investors are cautioned not to place undue reliance on forward-looking statements. We disclaim any obligation to update or revise these forward-looking statements. Please note that this conference call will be available for audio replay on our website at singulargenomics.com on the events page of the news and events section on our investors page. With that, I'll turn the call over to CEO, Bruce Leventa.

Good afternoon, and welcome to Singular Genomics third quarter 2022 earnings call. It was a very productive quarter, and we look forward to updating you on the progress we've made across the business. We'll focus on three topics. One, operations progress in supply chain and manufacturing scale-up. Two, factors driving our continued conviction in the G4's commercial success. And three, our product roadmap. First, on the operations side, as projected, we are on track to shift the G4 in the fourth quarter of this year and continue gradual scale-up through 2023. We've made strong progress on the supply chain and manufacturing scale-up, which has been a key area of our focus. To provide more color, the challenges we've highlighted in previous earnings calls related largely to a handful of third-party subsystems being reliable and meeting specifications and related system integration. This quarter, we made significant progress identifying and resolving these issues. We've also strengthened the quality control processes to test subsystems and parts prior to assembly. While we have made significant progress, this remains an area of critical focus with continued work to be done, as is to be expected with any new product of this nature. We are pleased to now have a better line of sight to streamline the manufacturing of the G4. We aim to build reliable, high-quality instruments that will delight and serve our customers. We will continue to learn more about the G4 in terms of robustness and reliability as we scale and deploy production units internally and to the field. We expect to continue to make improvements based on these learnings, both in terms of robustness and performance KPIs. We are dedicated to delivering the highest level of performance and reliability available. The second update focuses on the factors driving our continued conviction on the G4 commercial success. This past quarter's sector activities and announcements revealed more information on competitive roadmaps and reaffirmed singular's opportunity and room to succeed given key areas of product differentiation in an increasingly transparent competitive landscape. We are increasingly excited about the opportunity in front of us within the Bench Top Sequencing category, and we are bullish on the opportunity to create a strong business in large and growing markets and application segments. We remain optimistic about our TAM, or total addressable market, product market fit major markets, and commercial execution. I will share our thoughts on each of these, starting with TAM. From a top-down perspective of the roughly $6 billion NGS market today, we believe that over half of this market is broadly addressable by mid-throughput sequencers such as the G4. This portion of the market is predominantly made up of about two-thirds research and translational labs and one-third clinical labs, largely running applications such as target panels, RNA-seq, and single-cell RNA-seq. The G4 addresses these customers' needs and provides a compelling alternative from both a performance and value perspective in a market that is today largely served by a single MGS provider. Grilling down further into the opportunity as it relates to the G4's market fit, we believe the G4 provides an even more differentiated solution for approximately one-third of the overall MGS market. The G4 is the only desktop sequencer that is differentiated across a KPI combination of power, speed, and flexibility without compromising on accuracy or workflow. The G4 offers superior performance in specs and metrics that matter most to customers across our TAM. such as data output rate, run time, flow cell and lane-to-lane flexibility, and number of reads per run. This performance is ideally suited for all labs across academic, translational, or clinical markets that would like to minimize turnaround time, avoid unnecessary delays from inefficient sample batching, or improve their ability to scale experiment sizes up or down at cost-effective economics. This has resonated across target customers and application types. The translation of these performance facts to tangible benefits that will drive customer buying decisions is becoming clearer as we engage with customers in the field. Turning to commercial execution and how we intend to win these markets, our Chief Commercial Officer, Sam Bronson, has been on board for four months now and is underway with building a world-class commercial team. engaging with customers, evolving our sales processes, and implementing the right set of tools. We have found that the sales process requires high-touch engagement with our initial customers. Our team engages to gain a deep understanding of specific use cases, applications, workflows, and sample volumes. This allows our commercial team to translate the G-Force performance specs into tangible real-world benefits for customers, such as how they conduct and schedule their experiments, staff their labs, turnaround time, insourcing versus outsourcing, all or some sequencing, or reducing their costs on a sample or per experiment basis. This level of deep engagement and understanding has been resonating with prospective customers as evidenced by the quantity and quality of opportunities and leads in the funnel and by direct feedback received for the basis of a purchasing decision. Lastly, turning to the product roadmap update, we are enthusiastic about the progress being made by our R&D team. We are progressing development of the S3 flow cells, which will further expand our consumable offering on the G4. Feedback from customers and KOLs on our Max Read or M-Series flow cell kits continues to be strong. We believe the M-Series kits will offer a unique solution to provide ultra-short-read sub-100s-based kits that provide NovaSeq-level recounts at more attractive pricing. We have made the M-Series a priority in our product roadmap based on customer feedback. Obviously, G4's success tops all priorities, but we want to provide a brief update on the PX. We are expanding our market research efforts around multi-helmets and the needs of research and translational labs. Throughput, number of samples, and sampleplex are all terms used to describe the same need, a higher throughput, lower cost solution to measure cells and tissue. Additionally, concurrent multi-omic readout is an area of opportunity. Current solutions are limited in their ability to look at RNA and proteins concurrently in the same sample at the same time, and we expect that PX will be able to deliver this. These labs also want spatial context of information at high resolution, most notably for FFPE samples, which the PX is uniquely suited to provide at high throughput and high resolution. We are using this information to prioritize internal R&D efforts, and are excited to begin our technology access program in Q4, where we will begin partnering with industry-leading researchers to bring samples in-house and work together to generate novel information and applications in the PX platform. We plan to expand collaborations with additional potential customers in early access programs, which we plan to initiate in late 2023. With that, I'll turn the call over to Daylon to go over the details of our third quarter financial results.