EX-99.1 2 ef20014055_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1
 

Quantum-Si Reports Third Quarter 2023 Financial Results

BRANFORD, Conn. -- (BUSINESS WIRE) – Nov. 9, 2023 -- Quantum-Si Incorporated (Nasdaq: QSI) (“Quantum-Si,” “QSI” or the “Company”), The Protein Sequencing CompanyTM, today announced financial results for the third quarter ended September 30, 2023.

Third Quarter Highlights
●
Recorded revenue of $223,000 in the third quarter of 2023 as the Company continued its previously communicated controlled commercial launch of its Platinum instrument
●
Completed a strategic review of research and development (“R&D”) programs and organizational design; resulting changes will focus development on rapid delivery of capabilities and applications with the highest customer demand
●
First customer data presented in an October webinar titled “Next-generation protein sequencing platform: Advances in protein identification and characterization”
●
Further strengthened the Board of Directors with the addition of independent director Amir Jafri
●
Scaling commercial activities to support a full commercial launch in early 2024

“During the third quarter we completed our previously communicated strategic review of R&D and made some necessary changes.  These changes have positioned us well to focus our R&D efforts on delivering the product improvements and enhancements that our customers are seeking,” said Jeff Hawkins, President and Chief Executive Officer.  “I would like to emphasize that the changes we made, while resulting in lower expenses, are not expected to negatively impact R&D output.  We believe that our new organizational structure and focused set of R&D initiatives will lead to greater R&D effectiveness and result in the accelerated delivery of new capabilities and applications to our customers in 2024 and beyond.  Though the initial signs of our realignment are very encouraging, we are still evolving in our new operating structure.  As we had planned, we expect to continue to operate in our controlled commercial launch status until early 2024, at which point we anticipate transitioning to a full commercial launch.”

Third Quarter 2023 Financial Results
During the third quarter of 2023, the Company continued its controlled commercial launch of its Platinum instrument, recording revenue of $223,000.  Gross profit was $108,000 and gross margin was 48%. For the nine months ended September 30, 2023, the Company recorded revenue of $682,000, gross profit of $310,000, and gross margin of 45%.  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 $27.3 million in the third quarter of 2023, compared to $27.7 million for the same period in the prior year, and $83.6 million for the nine months ended September 30, 2023, compared to $85.0 million for the same period in the prior year. Adjusted total operating expenses were $23.9 million in the third quarter of 2023, compared to $23.6 million for the same period in the prior year, and adjusted total operating expenses for the nine months ended September 30, 2023, was $72.6 million compared to $77.9 million for the same period in the prior year.

Net loss was $24.7 million in the third quarter of 2023, compared to a net loss of $31.7 million in the same period of the prior year, and a net loss of $73.9 million for the nine months ended September 30, 2023, compared to a net loss of $99.3 million for the same period in the prior year. Adjusted EBITDA was negative $22.6 million in the third quarter of 2023, compared to negative $22.9 million in the same period of the prior year, and negative $69.2 million for the nine months ended September 30, 2023, compared to negative $76.1 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 September 30, 2023, cash and cash equivalents and investments in marketable securities were $274.6 million.

2023 Financial Outlook
●
The Company expects its full year 2023 adjusted total operating expenses to be approximately $100 million compared to $103.2 million for 2022
●
The Company maintains the expectation that the balance in cash and cash equivalents and investments in marketable securities of $274.6 million as of September 30, 2023 will provide a runway into 2026

Webcast and Conference Call Information
Quantum-Si will host a conference call to discuss its third quarter 2023 financial results on Thursday, November 9, 2023, 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 online 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 CompanyTM, 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 www.quantum-si.com.

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 November 9, 2023.

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 and its anticipated cash runway. 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 impact of COVID-19 on the Company's business; the inability to maintain the listing of the Company's Class A common stock on The Nasdaq Stock Market; the ability to recognize the benefits of business combination, which may be affected by, among other things, competition and 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 PlatinumTM protein sequencing instrument 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 Annual Report for the fiscal year ended December 31, 2022, 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 STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except share and per share amounts)
(Unaudited)

   
Three months ended
September 30,
    
Nine months ended
September 30,
  
   
2023
    
2022
    
2023
    
2022
  
Revenue:
                        
Product
  
$
216
    
$
-
    
$
654
    
$
-
  
Service
    
7
      
-
      
28
      
-
  
Total revenue
    
223
      
-
      
682
      
-
  
Cost of revenue
    
115
      
-
      
372
      
-
  
Gross profit
    
108
      
-
      
310
      
-
  
Operating expenses:
                                
Research and development
    
16,587
      
16,675
      
50,588
      
53,905
  
Selling, general and administrative
    
10,696
      
10,983
      
33,010
      
31,093
  
Total operating expenses
    
27,283
      
27,658
      
83,598
      
84,998
  
Loss from operations
    
(27,175
)
    
(27,658
)
    
(83,288
)
    
(84,998
)
Dividend income
    
2,572
      
1,381
      
7,274
      
3,288
  
Unrealized gain (loss) on marketable securities
    
1,953
      
(4,240
)
    
8,302
      
(20,384
)
Realized loss on marketable securities
    
(1,901
)
    
(1,348
)
    
(6,489
)
    
(2,399
)
Change in fair value of warrant liabilities
    
(162
)
    
137
      
(81
)
    
5,121
  
Other income (expense), net
    
(15
)
    
15
      
370
      
70
  
Loss before provision for income taxes
    
(24,728
)
    
(31,713
)
    
(73,912
)
    
(99,302
)
Provision for income taxes
    
-
      
-
      
-
      
-
  
Net loss and comprehensive loss
  
$
(24,728
)
  
$
(31,713
)
  
$
(73,912
)
  
$
(99,302
)

                               
Net loss per common share attributable to common stockholders, basic and diluted
  
$
(0.17
)
  
$
(0.23
)
  
$
(0.52
)
  
$
(0.71
)
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted
    
141,660,018
      
139,542,660
      
141,154,110
      
139,057,663
  

QUANTUM-SI INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
(Unaudited)

   
September 30,
2023
    
December 31,
2022
  
Assets
            
Current assets:
            
Cash and cash equivalents
  
$
93,822
    
$
84,319
  
Marketable securities
    
180,803
      
266,990
  
Accounts receivable, net of allowance for estimated credit losses of $0 and $0, respectively
    
466
      
-
  
Inventory, net
    
2,325
      
-
  
Prepaid expenses and other current assets
    
7,392
      
6,873
  
Total current assets
    
284,808
      
358,182
  
Property and equipment, net
    
17,606
      
16,849
  
Internally developed software
    
627
      
-
  
Operating lease right-of-use assets
    
14,354
      
15,757
  
Other assets
    
701
      
697
  
Total assets
  
$
318,096
    
$
391,485
  
Liabilities and stockholders' equity
                
Current liabilities:
                
Accounts payable
  
$
2,056
    
$
3,903
  
Accrued expenses and other current liabilities
    
7,428
      
10,434
  
Current portion of operating lease liabilities
    
1,523
      
1,369
  
Total current liabilities
    
11,007
      
15,706
  
Warrant liabilities
    
1,077
      
996
  
Other long-term liabilities
    
19
      
-
  
Operating lease liabilities
    
13,928
      
16,077
  
Total liabilities
    
26,031
      
32,779
  
                 
Commitments and contingencies
                
                 
Stockholders' equity
                
Class A Common stock, $0.0001 par value; 600,000,000 shares authorized as of September 30, 2023 and December 31, 2022; 121,790,534 and 120,006,757 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively
    
12
      
12
  
Class B Common stock, $0.0001 par value; 27,000,000 shares authorized as of September 30, 2023 and December 31, 2022; 19,937,500 shares issued and outstanding as of September 30, 2023 and December 31, 2022
    
2
      
2
  
Additional paid-in capital
    
765,637
      
758,366
  
Accumulated deficit
    
(473,586
)
    
(399,674
)
Total stockholders' equity
    
292,065
      
358,706
  
Total liabilities and stockholders' equity
  
$
318,096
    
$
391,485
  

QUANTUM-SI INCORPORATED
RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands)
(Unaudited)

   
Three months ended
September 30,
    
Nine months ended
September 30,
  
   
2023
    
2022
    
2023
    
2022
  
Net loss
  
$
(24,728
)
  
$
(31,713
)
  
$
(73,912
)
  
$
(99,302
)
Adjustments to reconcile to EBITDA:
                                
Dividend income
    
(2,572
)
    
(1,381
)
    
(7,274
)
    
(3,288
)
Depreciation and amortization
    
1,170
      
729
      
3,063
      
1,789
  
EBITDA
  
$
(26,130
)
  
$
(32,365
)
  
$
(78,123
)
  
$
(100,801
)
Adjustments to reconcile to Adjusted EBITDA:
                                
Unrealized (gain) loss on marketable securities
    
(1,953
)
    
4,240
      
(8,302
)
    
20,384
  
Realized loss on marketable securities
    
1,901
      
1,348
      
6,489
      
2,399
  
Change in fair value of warrant liabilities
    
162
      
(137
)
    
81
      
(5,121
)
Other (income) expense, net
    
15
      
(15
)
    
(370
)
    
(70
)
Stock-based compensation
    
1,141
      
4,043
      
6,914
      
7,099
  
Restructuring costs
    
2,251
      
-
      
4,131
      
-
  
Adjusted EBITDA
  
$
(22,613
)
  
$
(22,886
)
  
$
(69,180
)
  
$
(76,110
)


 
Three months ended
September 30,
    
Nine months ended
September 30,
  

 
2023
    
2022
    
2023
    
2022
  
Total operating expenses
  
$
27,283
    
$
27,658
    
$
83,598
    
$
84,998
  
Adjustments to reconcile to Adjusted total operating expenses:
                                
Stock-based compensation
    
(1,141
)
    
(4,043
)
    
(6,914
)
    
(7,099
)
Restructuring costs
    
(2,251
)
    
-
      
(4,131
)
    
-
  
Adjusted total operating expenses
  
$
23,891
    
$
23,615
    
$
72,553
    
$
77,899
  

Investor Contact
Jeff Keyes, CFO
ir@quantum-si.com

Media Contact
Katherine Atkinson, SVP, Commercial Marketing
media@quantum-si.com

Source: Quantum-Si Incorporated