Executive Summary

Q4 2023 showed mixed momentum: record December revenue ($1.7M) and stronger backlog, but GAAP Q4 revenue was reduced by ~$0.55M of one-time customer credits as the company adopted a more robust returns process .
The Next-Day Quote program drove sales and conversion improvements: Q4 quotes-to-PO conversion rose 39% versus the average of prior 2023 quarters; 32% of Q4 sales were attributable to the program .
Sequencing initiative built pipeline (~$1.5M across 55 projects; 25 confirmed orders) with management highlighting better-than-core margins as the program scales .
Full-year operating spend and cash burn trended down materially: quarterly cash burn fell from $4.29M in Q1 to $0.66M in Q4, reflecting cost reductions and efficiencies .
2024 catalysts: expanding Next-Day Quote penetration, sequencing commercialization, supplier contract refresh, and ambition to be cash flow positive in 2024 .

What Went Well and What Went Wrong

Quote conversion and cycle times: “We achieved a 39% increase in conversions of quotes to purchase orders… during the fourth quarter” and 32% of Q4 sales were from Next-Day Quote .
December record sales: “Generated revenue of approximately $1.7 million in December 2023, marking the Company’s strongest sales month to date” .
Sequencing pipeline and margins: ~55 projects investigated; 25 confirmed orders; margins “better than our core business… and only going to improve over time” .

Q4 GAAP revenue hit by credits: “Q4 revenue was negatively impacted by one-time customer credits of approximately $545,000” linked to enhancing returns processes .
Cash depletion y/y: cash and equivalents fell to ~$5.01M at year-end from ~$15.31M prior year, necessitating an ATM program for up to $1.5M .
Internal control weakness: identified a material weakness tied to sales tax documentation/collection; remediation underway .

Metric	Q2 2023	Q3 2023	Q4 2023
Revenue ($USD)	$1,630,000	$2,777,751	~$2,575,094 (FY $9,928,184 minus 9M $7,353,090 )

Note: Q4 GAAP revenue was reduced by ~$545,000 one-time credits .

Metric	FY 2022	FY 2023
Revenue ($USD)	$10,402,303	$9,928,184
Cost of Revenue ($USD)	$4,756,965	$4,820,268
Gross Profit ($USD)	$5,645,338	$5,107,916
Gross Margin (%)	54.3%	51.4%
Net Loss ($USD)	$(10,245,922)	$(11,099,488)
Net Loss per Share ($)	$(1.16)	$(1.23)
Cash & Equivalents ($USD)	$15,308,710	$2,343,666 (cash) + $2,661,932 (short-term investments) = ~$5,005,598 total liquid assets
Quarterly Cash Burn ($USD)	—	Q1 $4.29M; Q2 $2.81M; Q3 $2.55M; Q4 $0.657M

KPI	FY 2022	FY 2023
Specimen Count (#)	27,503	24,565
Avg. Selling Price per Specimen ($)	~$378	~$404
Q4 Quote→PO Conversion vs prior quarters	—	+39%
December 2023 Revenue ($USD)	—	~$1,700,000
Q4 Sales attributable to Next-Day Quote (%)	—	32%

Segment breakdown: iSpecimen operates as one segment .

Wall Street consensus (S&P Global) for Q4 2023 revenue/EPS was unavailable due to access limits; no comparison possible.

Metric	Period	Previous Guidance	Current Guidance	Change
Cash Flow	FY 2023–FY 2024	Aim to be cash flow neutral by end of 2023	Goal to be cash flow positive in 2024	Updated timing
Capital	Near-term	—	ATM facility up to $1.5M; may seek additional funding	New facility

No formal numeric revenue/EPS guidance was issued in Q4 materials .

Topic	Q2 2023 (Prev Mentions)	Q3 2023	Q4 2023	Trend
Demand/funding backdrop	Noted industry slowdown; lower conversion and backlog; actions to improve	Sequential revenue rebound to $2.78M; backlog improved; cost cuts	Record December; stronger backlog; one-time credits reduced GAAP Q4 revenue	Improving demand/operations, transitory GAAP headwind
Next-Day Quote program	Under launch to bypass feasibility; enable faster quotes	Conversion up 122% vs blended prior 4 quarters; strengthened supplier engagement	39% conversion improvement in Q4; 32% of sales from program	Scaling and driving mix
Sequencing initiative	Pilot (~300 samples) expected modest revenue by end Q3	“World’s largest single-access collection” across cancer types; pipeline 20–30 projects	~$1.5M pipeline; 25 confirmed orders; margins better than core	Commercial traction building
Cost actions/cash burn	Tech investment elevated in H1; cost reductions planned	G&A down y/y; workforce reduction ~29% monthly comp cost	Quarterly burn fell to $0.66M in Q4; year-end liquid assets ~$5.0M	Efficiency gains; liquidity tight
Controls/compliance	—	Material weakness (sales tax); remediation plan initiated	Continued remediation; adoption of improved returns process impacted Q4 GAAP	Ongoing, improving controls
Supplier network quality	—	Added suppliers; focus on women’s health, cancer, etc.	Shift to “quality over quantity”; supplier contract refresh program	Higher-quality supply to support initiatives

“We achieved a 39% increase in conversions of quotes to purchase orders… during the fourth quarter… 32% of our total sales were attributable to the Next-Day Quote program” (Tracy Curley) .
“Q4 revenue was negatively impacted by one-time customer credits of approximately $545,000” (Curley) .
“Margins [in sequencing] are some of the best that we have and they’re only going to improve over time” (Eric Langlois) .
“For Q1, Q2, Q3 and Q4 the quarterly cash burn was approximately $4.29M, $2.81M, $2.55M and $657,000” (Curley) .
“We plan to terminate contracts with suppliers where our criteria are not being met” (Curley) .

Sequencing demand and margins: Customers responded positively; pricing/value accepted; margins better than core business; expected to improve as scale builds .
Cash flow neutrality/positivity: Management said it was positioned to reach cash flow neutral by end-2023 (Oct close), with continued focus on cost discipline and revenue goals .
2024 focus: Drive growth through new services and marketplace improvements while fine-tuning operations .

Note: The March 14, 2024 year-end call transcript provided contains prepared remarks; Q&A content was not included in that file .

Wall Street consensus via S&P Global (Revenue Consensus Mean, Primary EPS Consensus Mean) for Q4 2023 was unavailable due to data access limits; comparisons to estimates cannot be provided at this time.

Near-term trading: Expect narrative sensitivity to Next-Day Quote contribution (32% in Q4) and sequencing commercialization; watch for further backlog updates and any normalization after Q4 credits .
Profitability path: Operating discipline is visible (cash burn down to $0.66M in Q4), but liquidity is constrained (~$5.0M liquid assets at year-end) and ATM availability ($1.5M) suggests continued capital prudence .
Margin mix: Sequencing program has superior margin potential versus core; pipeline growth and order conversion will be key drivers in 2024 .
Execution risk: Internal control remediation (sales tax) and supplier quality refresh are critical execution areas; improved returns process created a transitory revenue headwind but should elevate customer satisfaction .
Structural differentiation: Marketplace technology, faster quoting, and supplier data integrations remain central to improving conversion and scalability .
Strategic focus: Management continues to prioritize core operations, Next-Day Quotes, sequencing, and high-quality supplier relationships to support targeted cash flow positivity in 2024 .
Monitoring items: Quarterly backlog trends, Next-Day Quote share of sales, sequencing bookings/fulfillment pace, cash burn trajectory, and any formal guidance updates .