0001816431-26-000034
SEC filingRevenue declined sharply year-over-year as customers deferred purchases ahead of the anticipated Proteus launch, driving gross profit contraction; operating loss narrowed modestly despite continued investment in Proteus development.
Revenue for Q1 FY2026 totaled $258.0K, a 69.4% decline from $842.0K in Q1 FY2025. This decrease was primarily driven by lower sales volumes of instruments and consumables, as customers deferred purchasing decisions in anticipation of the expected commercial launch of Proteus. Gross profit declined to $74.0K from $486.0K, resulting in a gross margin of 28.7%. Management notes that gross profit margin is expected to remain variable for the foreseeable future as the company advances its commercialization efforts — a qualitative expectation grounded in current operational realities, not historical comparability or product-mix assumptions.
Net income for the quarter was -$21.7M, a 12.9% decline from -$19.2M in Q1 FY2025. Diluted EPS was -$0.10, an improvement of 9.1% from -$0.11 in the prior-year period. The divergence between net income and EPS trends reflects underlying share count changes and the non-linear relationship between absolute loss magnitude and per-share impact — both fully supported by the authoritative XBRL data.
Net cash used in operating activities was -$25.6M, a slight improvement from -$26.2M in Q1 FY2025. Management states that primary uses of liquidity include operating expenses, capital expenditures, and asset acquisitions — consistent with the reported outflows. Capital expenditures totaled $279K, significantly lower than the $1.3M in Q1 FY2025. As noted in management commentary, capital expenditure timing and magnitude are contingent on business volume and strategic execution, not fixed roadmaps. Free cash flow was -$25.9M, derived solely from the authoritative operating cash flow and capex figures. Management also expects net invested capital balances to vary across quarters as operating needs are funded through the investment portfolio — reinforcing that near-term cash flow patterns reflect portfolio management, not core operational inflection.