Quantum-Si Reports Second Quarter 2022 Financial Results

Rhea-AI Summary

Quantum-Si Incorporated (Nasdaq: QSI) reported its second quarter 2022 financial results, revealing a net loss of $32.4 million, an improvement from a loss of $35.7 million in Q2 2021. Operating expenses decreased 6% to $30.2 million. Research and development costs rose to $18.5 million due to increased product development activities. Despite the challenges, the company achieved significant milestones in protein sequencing, demonstrating recognition of 15 out of 20 amino acids. Quantum-Si maintains a strong cash position of $400.7 million, enabling continued business investments.

Positive

• Achieved recognition of 15 out of 20 amino acids, enabling over 70% coverage of the human proteome.
• Cash and cash equivalents of $400.7 million provide a substantial financial runway for growth.
• Reduced operating expense growth forecast from 70-80% to 40-50% year-over-year.

Negative

• Net loss increased to $32.4 million in Q2 2022 compared to the previous year.
• Adjusted EBITDA worsened to negative $25.8 million, from negative $15.0 million in Q2 2021.

GUILFORD, Conn.--(BUSINESS WIRE)-- Aug. 08, 2022 -- Quantum-Si Incorporated (Nasdaq: QSI) (“Quantum-Si,” “QSI” or the “Company”), a life sciences company commercializing the first next-generation, single-molecule protein sequencing platform, today announced financial results for the second quarter ending June 30, 2022.

Recent Business Highlights

• Successfully demonstrated the recognition of 15 out of 20 amino acids, representing a path to more than 70% coverage of the human proteome and identification of up to 90% of proteins, including post-translational modifications.
• Released an application note, “Detecting Arginine Post-Translational Modifications Using Quantum-Si’s Next-Generation Protein Sequencing Technology,” demonstrating the use of Quantum-Si’s Platinum^TM sequencing instrument to directly sequence arginine post-translational modifications.
• Executing well on our supply chain initiatives, including the build-up of Platinum^TM instrument inventory and scale-up of semiconductor chip and reagent kit production.
• Appointed Vikram Bajaj, Ph.D., to our Board of Directors.
• Held $400.7 million in cash and cash equivalents and investments in marketable securities as of June 30, 2022, providing sufficient runway to make key investments in the business.
• In recognition of the current macroeconomic environment, we have increased our efforts to manage costs and improve efficiencies. As a result, we now expect operating expenses to grow 40-50% year-over-year in 2022, down from a prior expectation of 70-80%.

“During the first half of 2022, with our intense focus on execution and supply chain strengthening, we have continued on our path forward toward the commercial launch of Quantum-Si’s Platinum^TM instrument,” said Dr. Jonathan Rothberg, Founder and Interim Chief Executive Officer. “Our first-of-its-kind, next-generation protein sequencing technology will unlock a new understanding of disease, illuminate better paths to health, and like next-generation DNA sequencing before it, impact all of life science research.”

Second Quarter 2022 Financial Results

Research and development expenses were $18.5 million in the second quarter of 2022, compared to $13.1 million in the second quarter of 2021. The increase was primarily due to higher internal and external product development activities and higher personnel costs as a result of increased headcount.

Selling, general and administrative expenses were $11.7 million in the second quarter of 2022, compared to $19.1 million in the second quarter of 2021. The decrease was primarily the result of lower transaction costs associated with the business combination that took place last year, partially offset by an increase in compensation and costs associated with being a public company.

Operating expenses were $30.2 million in the second quarter of 2022, compared to $32.2 million in the second quarter of 2021, representing a decrease of 6%.

Net loss was $32.4 million in the second quarter of 2022, compared to a net loss of $35.7 million in the second quarter of 2021. Adjusted EBITDA was negative $25.8 million in the second quarter of 2022, compared to negative $15.0 million in the second quarter of 2021. Please see the reconciliation of non-GAAP adjusted EBITDA to net loss in the table provided in this press release.

As of June 30, 2022, cash and cash equivalents and investments in marketable securities were $400.7 million.

Webcast and Conference Call Information

Quantum-Si will host a conference call to discuss its second quarter 2022 financial results on Monday, August 8, 2022, at 4:30 PM Eastern Time. Individuals interested in listening to the conference call may do so through the live webcast on 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 will be available for replay following the event.

About Quantum-Si Incorporated

Quantum-Si 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 single-molecule next-generation 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

In addition to providing financial measurements that have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), the Company provides additional financial metrics that are not prepared in accordance with U.S. GAAP (“non-GAAP”). The non-GAAP financial measure included in this press release is Adjusted EBITDA. The Company presents non-GAAP financial measures to assist readers of its condensed consolidated financial statements in understanding the core operating results that its management uses to evaluate the business and for financial planning purposes. The Company’s non-GAAP financial measure, Adjusted EBITDA, provides an additional tool for investors to use in comparing its financial performance over multiple periods.

Adjusted EBITDA is a key performance measure that the Company’s management uses to assess its operating performance. This non-GAAP measure facilitates internal comparisons of the Company’s operating performance on a more consistent basis. The Company uses this performance measure for business planning purposes and forecasting. The Company believes that Adjusted EBITDA enhances an investor’s understanding of the Company’s financial performance as it is useful in assessing its operating performance from period-to-period by excluding certain items that the Company believes are not representative of its core business.

Adjusted EBITDA may not be comparable to similarly titled measures of other companies because they may not calculate this measure in the same manner. Adjusted EBITDA is not prepared in accordance with U.S. GAAP and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with U.S. GAAP. When evaluating the Company’s performance, you should consider Adjusted EBITDA alongside other financial performance measures prepared in accordance with U.S. GAAP, including net loss.

The non-GAAP financial measure does not replace the presentation of the Company’s U.S. GAAP financial results and should only be used as a supplement to, not as a substitute for, the Company’s financial results presented in accordance with U.S. GAAP. In this press release, the Company has provided a reconciliation of Adjusted EBITDA to net loss, the most directly comparable U.S. GAAP financial measure. A reconciliation of Adjusted EBITDA to corresponding U.S. GAAP measures is not available on a forward-looking basis because the Company is unable to predict with reasonable certainty the non-cash component of employee compensation expense, changes in its working capital needs, the impact of earnings or charges resulting from matters the Company considers not to be reflective, on a recurring basis, of its ongoing operations, and other such items without unreasonable effort. These items are uncertain, depend on several factors, and could be material to the Company’s results computed in accordance with U.S. GAAP. Management strongly encourages investors to review the Company’s financial statements and publicly-filed reports in their entirety and not rely on any single financial measure.

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. 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 anticipated benefits of the 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; our ongoing leadership transition; 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 potential attributes and benefits of the Company's products and services; 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 the Company is developing; the size and growth potential of the markets for the Company's future products and services, and its ability to serve those markets, either alone or in partnership with others; the pricing of the Company's products and services following anticipated commercial launch; 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, 2021, 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 June 30,						Six months ended June 30,
	2022			2021			2022			2021
Operating expenses:
Research and development	$	18,459		$	13,114		$	37,230		$	21,086
Selling, general and administrative		11,741			19,050			20,110			22,857
Total operating expenses		30,200			32,164			57,340			43,943
Loss from operations		(30,200)			(32,164)			(57,340)			(43,943)
Interest expense		-			(5)			-			(5)
Dividend income		1,052			2			1,907			2
Change in fair value of warrant liabilities		2,337			(3,533)			4,984			(3,533)
Other (expense) income, net		(5,603)			3			(17,140)			3
Loss before provision for income taxes		(32,414)			(35,697)			(67,589)			(47,476)
Provision for income taxes		-			-			-			-
Net loss and comprehensive loss	$	(32,414)		$	(35,697)		$	(67,589)		$	(47,476)
Net loss per common share attributable to common stockholders, basic and diluted	$	(0.23)		$	(0.97)		$	(0.49)		$	(2.23)
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted		139,000,261			36,890,502			138,811,146			21,296,162

QUANTUM-SI INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) (Unaudited)
	June 30, 2022			December 31, 2021
Assets
Current assets:
Cash and cash equivalents	$	81,272		$	35,785
Marketable securities		319,398			435,519
Prepaid expenses and other current assets		4,436			5,868
Total current assets		405,106			477,172
Property and equipment, net		12,562			8,908
Goodwill		9,483			9,483
Other assets		690			690
Operating lease right-of-use assets		15,411			6,973
Total assets	$	443,252		$	503,226
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	2,370		$	3,393
Accrued expenses and other current liabilities		7,912			7,276
Short-term operating lease liabilities		1,150			859
Total current liabilities		11,432			11,528
Long-term liabilities:
Warrant liabilities		2,255			7,239
Other long-term liabilities		-			206
Operating lease liabilities		16,070			7,219
Total liabilities		29,757			26,192
Stockholders' equity
Class A Common stock, $0.0001 par value; 600,000,000 shares authorized as of June 30, 2022 and December 31, 2021; 119,244,128 and 118,025,410 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively		12			12
Class B Common stock, $0.0001 par value; 27,000,000 shares authorized as of June 30, 2022 and December 31, 2021; 19,937,500 shares issued and outstanding as of June 30, 2022 and December 31, 2021		2			2
Additional paid-in capital		748,302			744,252
Accumulated deficit		(334,821)			(267,232)
Total stockholders' equity		413,495			477,034
Total liabilities and stockholders' equity	$	443,252		$	503,226

QUANTUM-SI INCORPORATED RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES (in thousands) (Unaudited) Adjusted EBITDA
	Three months ended June 30,						Six months ended June 30,
	2022			2021			2022			2021
Net loss	$	(32,414)		$	(35,697)		$	(67,589)		$	(47,476)
Adjustments to reconcile to EBITDA:
Interest expense		-			5			-			5
Dividend income		(1,052)			(2)			(1,907)			(2)
Depreciation		608			235			1,060			448
EBITDA	$	(32,858)		$	(35,459)		$	(68,436)		$	(47,025)
Adjustments to reconcile to Adjusted EBITDA:
Change in fair value of warrant liabilities		(2,337)			3,533			(4,984)			3,533
Other expense (income), net		5,603			(3)			17,140			(3)
Stock-based compensation		3,770			9,987			3,056			10,444
Transaction related costs - business combination		-			6,920			-			6,920
Adjusted EBITDA	$	(25,822)		$	(15,022)		$	(53,224)		$	(26,131)

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220808005753/en/

Investor Contacts

Juan Avendano

ir@quantum-si.com

Media Contact

Karen Chase

QSI-PR@westwicke.com

Source: Quantum-Si Incorporated

FAQ

What were Quantum-Si's Q2 2022 financial results?

Quantum-Si reported a net loss of $32.4 million for Q2 2022, an improvement from a loss of $35.7 million in Q2 2021.

What is the cash position of Quantum-Si as of June 30, 2022?

Quantum-Si had cash and cash equivalents amounting to $400.7 million as of June 30, 2022.

How did Quantum-Si's operating expenses change in Q2 2022?

Operating expenses decreased by 6% to $30.2 million in Q2 2022 compared to $32.2 million in Q2 2021.

What advancements did Quantum-Si make in protein sequencing?

The company successfully demonstrated the recognition of 15 out of 20 amino acids, paving the way for over 70% human proteome coverage.