QSI Quantum Si Inc

Announces Release of Version 3 Sequencing Kit

Announces Two Additional Kit Launches Expected by End of 2024

Quantum-Si Incorporated (Nasdaq: QSI) (“Quantum-Si,” “QSI” or the “Company”), The Protein Sequencing Company™, today announced financial results for the second quarter ended June 30, 2024.

 

Press Release Highlights

 

• Reported revenue of $622,000 in the second quarter of 2024

• Completed the first quarter of full commercial launch of the Platinum® instrument in Q2 2024

• Announces the launch of the version 3 sequencing kit

• Announced appointment of Chuck Kummeth as independent Chairman of the Board of Directors

• Expect to launch a version 2 library prep kit and a barcoding application specific library prep kit by the end of 2024

“I’m pleased with the progress that we made on the commercial ramp up of Platinum during the second quarter. We are seeing strong customer interest in the unique capabilities of Platinum, which was underscored by presentations at major scientific conferences over the last few months, including the American Society of Mass Spectrometry and the European Society for Human Genetics,” said Jeff Hawkins, President and Chief Executive Officer of Quantum-Si. “We are in the early stages of penetrating a large market opportunity in proteomics, as researchers seek a deeper understanding of the importance of protein sequences and identify high value applications of the technology.”

Hawkins continued, “Today, we also announce the launch of our version 3 sequencing kit. This new kit will continue to give customers deeper insights into an ever-expanding number of proteins, more peptides per protein and more amino acids per peptide. We remain laser-focused on delivering a compelling technology roadmap of enhancements to our hardware, software and chemistries and now expect to release a version 2 of our library prep kit as well as a barcoding application specific library prep kit by the end of 2024. We believe these innovations will continue to extend our leadership in protein sequencing. Finally, we added Chuck Kummeth as independent Chairman of our Board of Directors. We look forward to benefitting from the experience Chuck has gained through decades of leadership with leading life sciences tools companies like Bio-Techne and Thermo Fisher Scientific.”

Second Quarter 2024 Financial Results

For the second quarter of 2024, the Company recorded revenue of $622,000. Gross profit was $354,000 and gross margin was 57%. For the six months ended June 30, 2024, the Company recorded revenue of $1.1 million, gross profit of $623,000, and gross margin of 57%. The periodic gross margin rate is expected to be variable in the near term as the Company works through the initial stages of commercialization as well as the timing and mix of product sales between instruments and consumable kits.

Total operating expenses were $26.8 million in the second quarter of 2024, compared to $27.0 million for the same period in the prior year, and $50.4 million for the six months ended June 30, 2024, compared to $56.3 million for the same period in the prior year. Adjusted total operating expenses were $24.4 million in the second quarter of June 30, 2024, compared to $24.0 million for the same period in the prior year, and adjusted total operating expenses for the six months ended June 30, 2024 was $46.3 million compared to $48.7 million for the same period in the prior year. Driven by the Company’s 2023 initiative to enact operating changes to utilize capital in the most efficient manner while accelerating R&D innovation and delivering product enhancements to customers, the overall adjusted operating expenses included reductions in R&D and G&A spend, partially offset with increased spending for commercial operations. Overall, the Company has been able to reduce core areas of spend while accelerating R&D focus, efficiency, and delivery while still funding the Company’s full commercial launch of its Platinum® instrument.

Net loss was $23.1 million in the second quarter of 2024, compared to a net loss of $25.6 million in the same period of the prior year, and a net loss of $42.6 million for the six months ended June 30, 2024, compared to a net loss of $49.2 million for the same period in the prior year. Adjusted EBITDA was negative $22.6 million in the second quarter of 2024, compared to negative $22.9 million in the same period of the prior year, and negative $43.2 million for the six months ended June 30, 2024, compared to negative $46.6 million for the same period in the prior year. A reconciliation of the non-GAAP financial measures adjusted total operating expenses and adjusted EBITDA is provided in a table included in this press release.

As of June 30, 2024, the Company’s cash and cash equivalents and investments in marketable securities were $218.1 million.

2024 Financial Guidance

The Company reaffirms its full year 2024 financial guidance as follows:

Revenue $3.7 - $4.2 million Adjusted total operating expenses Less than $103 million Total cash usage Less than $100 million

The Company also maintains the expectation that the balance in cash and cash equivalents and investments in marketable securities of $218.1 million as of June 30, 2024 will provide a runway into 2026.

Webcast and Conference Call Information

Quantum-Si will host a conference call to discuss its second quarter 2024 financial results on Wednesday, August 7, 2024, at 4:30 p.m. Eastern Time. Individuals interested in listening to the conference call may do so by joining the live webcast in the Investors section of the Quantum-Si website under Events & Presentations. Alternatively, individuals can register here to receive a dial-in number and personalized PIN to participate in the call. An archived webcast of the event will be available for replay following the event.

About Quantum-Si Incorporated

Quantum-Si, The Protein Sequencing Company™, is focused on revolutionizing the growing field of proteomics. The Company’s suite of technologies is powered by a first-of-its-kind semiconductor chip designed to enable next-generation single-molecule protein sequencing and digitize proteomic research in order to advance drug discovery and diagnostics beyond what has been possible with DNA sequencing. Learn more at quantum-si.com or follow us on LinkedIn or X.

Use of Non-GAAP Financial Measures

This press release presents the non-GAAP financial measures “adjusted total operating expenses” and “adjusted EBITDA.” The most directly comparable measures for these non-GAAP financial measures are total operating expenses and net loss. The Company has included below adjusted total operating expenses, which presents the Company’s total operating expenses after excluding goodwill impairment, stock-based compensation and restructuring costs. In addition, adjusted EBITDA further excludes interest, taxes, depreciation, amortization, dividend income, unrealized and realized gains and losses on marketable securities, changes in fair value of warrant liabilities and other income or expense.

A discussion of the reasons why management believes that the presentation of non-GAAP financial measures provides useful information to investors regarding the Company’s financial condition and results of operations is included as Exhibit 99.2 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on August 7, 2024.

Forward Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. The actual results of the Company may differ from its expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company’s expectations with respect to future performance and development and commercialization of products and services, its anticipated cash runway and its financial guidance for the full year 2024. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside the Company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: the inability to maintain the listing of the Company’s Class A common stock on The Nasdaq Stock Market; the ability of the Company to grow and manage growth profitably and retain its key employees; the Company’s ongoing leadership transitions; changes in applicable laws or regulations; the ability of the Company to raise financing in the future; the success, cost and timing of the Company’s product development and commercialization activities; the commercialization and adoption of the Company’s existing products and the success of any product the Company may offer in the future; the potential attributes and benefits of the Company’s commercialized Platinum® protein sequencing instrument and kits and the Company’s other products once commercialized; the Company’s ability to obtain and maintain regulatory approval for its products, and any related restrictions and limitations of any approved product; the Company’s ability to identify, in-license or acquire additional technology; the Company’s ability to maintain its existing lease, license, manufacture and supply agreements; the Company’s ability to compete with other companies currently marketing or engaged in the development or commercialization of products and services that serve customers engaged in proteomic analysis, many of which have greater financial and marketing resources than the Company; the size and growth potential of the markets for the Company’s products and services, and its ability to serve those markets once commercialized, either alone or in partnership with others; the Company’s estimates regarding future expenses, future revenue, capital requirements and needs for additional financing; the Company’s financial performance; and other risks and uncertainties described under “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and in the Company’s other filings with the SEC. The Company cautions that the foregoing list of factors is not exclusive. The Company cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.

QUANTUM-SI INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and par value amounts)

(unaudited)

 

June 30,2024 December 31,2023 Assets Current assets: Cash and cash equivalents

$

59,552

$

133,860

Marketable securities

 

158,565

 

123,876

Accounts receivable, net of allowance of $0 and $0, respectively

 

598

 

368

Inventory

 

4,854

 

3,945

Prepaid expenses and other current assets

 

2,901

 

4,261

Total current assets

 

226,470

 

266,310

Property and equipment, net

 

16,211

 

16,275

Internally developed software, net

 

124

 

532

Operating lease right-of-use assets

 

13,248

 

14,438

Other assets

 

695

 

695

Total assets

$

256,748

$

298,250

Liabilities and stockholders’ equity Current liabilities: Accounts payable

$

1,379

$

1,766

Accrued payroll and payroll-related costs

 

2,883

 

4,943

Accrued contracted services

 

1,645

 

1,519

Accrued expenses and other current liabilities

 

3,446

 

1,815

Current portion of operating lease liabilities

 

1,655

 

1,566

Total current liabilities

 

11,008

 

11,609

Warrant liabilities

 

478

 

1,274

Operating lease liabilities

 

11,991

 

13,737

Other long-term liabilities

 

11

 

11

Total liabilities

 

23,488

 

26,631

  Stockholders’ equity Class A Common stock, $0.0001 par value; 600,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 122,382,332 and 121,832,417 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively

 

12

 

12

Class B Common stock, $0.0001 par value; 27,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 19,937,500 shares issued and outstanding as of June 30, 2024 and December 31, 2023

 

2

 

2

Additional paid-in capital

 

771,460

 

767,239

Accumulated other comprehensive loss

 

(7)

 

—

Accumulated deficit

 

(538,207)

 

(495,634)

Total stockholders’ equity

 

233,260

 

271,619

Total liabilities and stockholders’ equity

$

256,748

$

298,250

 

QUANTUM-SI INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(in thousands, except per share amounts)

(unaudited)

Three months ended June 30, Six months ended June 30,

 

 

2024

 

2023

 

 

2024

 

2023

Revenue: Product

$

584

$

187

$

1,012

$

438

Service

 

38

 

18

 

67

 

21

Total revenue

 

622

 

205

 

1,079

 

459

  Cost of revenue

 

268

 

127

 

456

 

257

  Gross profit

 

354

 

78

 

623

 

202

Operating expenses: Research and development

 

14,381

 

15,834

 

26,482

 

34,001

Selling, general and administrative

 

12,424

 

11,136

 

23,952

 

22,314

Total operating expenses

 

26,805

 

26,970

 

50,434

 

56,315

Loss from operations

 

(26,451)

 

(26,892)

 

(49,811)

 

(56,113)

Dividend and interest income

 

2,887

 

2,483

 

6,461

 

4,702

(Loss) gain on marketable securities, net

 

—

 

(1,181)

 

—

 

1,761

Change in fair value of warrant liabilities

 

477

 

(310)

 

796

 

81

Other (expense) income, net

 

(12)

 

327

 

(19)

 

385

Loss before provision for income taxes

 

(23,099)

 

(25,573)

 

(42,573)

 

(49,184)

Provision for income taxes

 

—

 

—

 

—

 

—

Net loss

$

(23,099)

$

(25,573)

$

(42,573)

$

(49,184)

  Net loss per common share attributable to common stockholders, basic and diluted

$

(0.16)

$

(0.18)

$

(0.30)

$

(0.35)

Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted

 

141,939

 

141,507

 

141,856

 

140,897

  Other comprehensive gain (loss): Net unrealized gain on marketable securities, net of tax

$

28

$

—

$

—

$

—

Foreign currency translation adjustment

$

(2)

$

—

$

(7)

$

—

Total other comprehensive gain (loss), net of tax

 

26

 

—

 

(7)

 

—

Comprehensive loss

$

(23,073)

$

(25,573)

$

(42,580)

$

(49,184)

 

QUANTUM-SI INCORPORATED

RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES

(in thousands)

(unaudited)

 

Three months ended June 30, Six months ended June 30,

 

 

2024

 

2023

 

 

2024

 

2023

Net loss

$

(23,099)

$

(25,573)

$

(42,573)

$

(49,184)

Adjustments to reconcile to EBITDA: Dividend and interest income

 

(2,887)

 

(2,483)

 

(6,461)

 

(4,702)

Depreciation and amortization

 

1,387

 

1,090

 

2,448

 

1,893

EBITDA

 

(24,599)

 

(26,966)

 

(46,586)

 

(51,993)

Adjustments to reconcile to Adjusted EBITDA: Loss (gain) on marketable securities, net

 

—

 

1,181

 

—

 

(1,761)

Change in fair value of warrant liabilities

 

(477)

 

310

 

(796)

 

(81)

Other expense (income), net

 

12

 

(327)

 

19

 

(385)

Stock-based compensation

 

2,400

 

1,865

 

4,009

 

5,773

Restructuring costs

 

31

 

1,067

 

174

 

1,880

Adjusted EBITDA

$

(22,633)

$

(22,870)

$

(43,180)

$

(46,567)

  Three months ended June 30, Six months ended June 30,

 

2024

 

2023

 

2024

 

2023

Total operating expenses

$

26,805

$

26,970

$

50,434

$

56,315

Adjustments to reconcile to Adjusted total operating expenses: Stock-based compensation

 

(2,400)

 

(1,865)

 

(4,009)

 

(5,773)

Restructuring costs

 

(31)

 

(1,067)

 

(174)

 

(1,880)

Adjusted total operating expenses

$

24,374

$

24,038

$

46,251

$

48,662

 

 

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Investor Contact: Doug Farrell VP, Investor Relations ir@quantum-si.com Media Contact: Katherine Atkinson SVP, Commercial Marketing media@quantum-si.com