Singular Genomics Systems, Inc.

Greetings. Welcome to the Singular Genomics second quarter and business update call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Philip Taylor.

Thank you, operator. Presenting today are Singular Genomics founder, chair, and chief executive officer, Drew Spaventa, and the company's chief financial officer, Galen Meter. Earlier today, Singular Genomics released financial results for the three-month end of June 30, 2024. A copy of the press release is available on the company's website. Before we begin, I'd like to inform you that comments and responses to your questions during today's call reflect management's views as of today, Tuesday, August 13, 2024 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-Q and 10-K filings and the Form 8-K filed with today's press release. Our SEC filings can be found on our website or on 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 investor.singulargenomics.com in the presentation and events section. With that, I will now turn the call over to CEO Drew Spaventa.

Good afternoon, and welcome to Singular Genomics second quarter 2024 earnings call. Q2 was a busy and productive quarter for our team. In Q2, we progressed development of the G4x spatial sequencer, initiated our first spatial technology access services projects, and added to our spatial pipeline of customers interested in services, collaborations, and G4x instruments. We will focus our call on the following areas. revisiting our strategy following the pivot to spatial sequencing earlier this year. Two, a summary of the second quarter results. And three, an update on the development of the G4x spatial sequencer and our spatial services. We announced a strategy shift in February at AGBT when we unveiled the G4x spatial sequencer. The G4x is being developed to offer readouts of targeted transcripts, targeted proteins, and a fluorescent H&E stain all in the same tissue section. In addition, its novel capabilities will include DirectSeq, which is the sequencing of RNA in situ and has the potential to open new areas of scientific discovery. This combination of readout modalities will offer significantly higher throughput than any spatial profiling technologies currently on market. We continue to be encouraged by discussions with spatial experts and prospective customers. Spatial biology is quickly growing in many customer segments. and throughput is a significant limitation. We believe that G4X will be uniquely suited to address these pain points and has the potential to accelerate growth in the spatial market. The business setup is encouraging in that we plan to deliver cost savings to our customers while supporting a high margin sustainable business. In addition to the exciting development work to get G4X to market, we are focused on supporting our existing G4 customers, most of which we believe will benefit from our move to spatial and are poised to become G4x customers. Supporting and continuing to improve their G4 sequencing experience is paramount to our offering a second product into an existing customer base. The G4 and G4x share the same platform, which will allow for a streamlined upgrade process for existing G4 customers. Our strategy with existing G4 customers is to continue to improve their experience and facilitate higher usage with the G4 sequencer as we prepare them to convert to spatial sequencing when the G4X becomes available. We are seeing improved reliability and usage across the existing installed base. System uptime has been averaging 95% during the quarter. Average annualized consumable pull-through for the installed base was approximately 60,000 in Q2, which was roughly double Q1. In addition, we recently initiated the rollout of our V2 system upgrade package, which will include system performance and feature enhancements to further improve the reliability and usage of the system as we continue to prepare for conversion to spatial sequencing on the G4x. Now, let's move into the second quarter results. We shipped two G4 instruments during the quarter and generated 0.7 million in revenue. Of these shipments, one was an academic core lab and one was to a commercial lab. One of the most important focus areas for us is to maintain our emphasis on supporting existing customers We continue to see improvements in system utilization and consumables pull through. Q2 was our highest quarterly total yet for consumable orders and shipments. Now, let's turn to an update on our development of G4X. In R&D, we are advancing work on instrument method development, expanding the compatible tissue types, and improving protocol performance for combined readout modalities. Our internal focus is centered around developing the G4X platform and optimizing the spatial sequencing methods and protocols. Our planned initial G4X kit offering will be our V1 immuno-oncology panel with 300 genes, 12 proteins, and the ability to customize content. We are excited about the technology as we have continued to progress the development of capabilities and methods. In services, we continue to see growing interest in the funnel of service projects as part of the G4X Spatial Sequencing Technology Access Services Program that was launched in the second quarter. Our strategy in services is twofold. to learn from running initial customer samples in order to accelerate product development and generate customers that will buy the instrument and consumables when available. Our initial focus in services is our V1 immuno-oncology panel. The project submissions in our service funnel make it clear that a lower target Plex, higher sample throughput offering is addressing an unmet need in the market. Several months ago, we opened a G4x spatial research grant award program. which was well received by prospective customers and researchers from some of the top institutions across the world. We received over 50 applications from institutions interested in using the G4x in various applications, including cancer research, the study of autoimmune diseases, chronic disease research, cardiovascular and liver diseases, vaccine development, and neuroscience. We look forward to sharing more information about the award recipients, and our collaborations with these institutions to bring forward these exciting demonstrations of G4X applications later this year. Lastly, we are planning for our G4X early access program, which we intend to deliver late this year. This will include a select number of customers with early access to G4X. The purpose of early access is to both learn and incorporate feedback for broader commercial launch, as well as to generate demand. Now, I'll turn it over to Dalen to go through the details of our second quarter financial results.