Precipio Inc (PRPO) 2026 Q1 法說會逐字稿

Welcome to the Precipio first-quarter 2026 shareholder update conference call. (Operator Instructions). Please note that the conference is being recorded. Statements made during this call contain forward-looking statements about our business. You should not place undue reliance on forward-looking statements as these statements are based upon our current expectations, forecasts and assumptions and are subject to significant risks and uncertainties.

歡迎參加 Precipio 2026 年第一季股東最新進展電話會議。(接線員指示)。請注意，本次會議將被錄音。本次通話中的陳述包含關於我們業務的前瞻性陳述。您不應過度依賴前瞻性陳述，因為這些陳述係基於我們目前的預期、預測與假設，並可能受到重大風險與不確定性的影響。

These statements may be identified by words such as may, will, should, could, expect, intend, plan, anticipate, believe, estimate, predict, potential, forecast, continue or the negative of these terms, other words or terms of similar meaning.

這些陳述可透過「可能」、「將」、「應該」、「可以」、「預期」、「打算」、「計畫」、「預見」、「相信」、「估計」、「預測」、「潛在」、「預報」、「持續」或上述詞語的否定形式，以及其他具有類似含義的詞語或用語加以識別。

Risks and uncertainties that could cause our actual results to differ materially from those set forth in any forward-looking statements include, but are not limited to the matters listed under Risk Factors in our annual report on Form 10-K for the year ended December 31, 2025, which is on file with the Securities and Exchange Commission, as well as other risks detailed in our subsequent filings with the Securities and Exchange Commission.

可能導致我們的實際結果與任何前瞻性陳述所載內容出現重大差異的風險與不確定性包括但不限於：我們截至 2025 年 12 月 31 日止年度之 Form 10-K 年報中「風險因素」項下所列事項（該年報已向美國證券交易委員會提交存檔），以及我們其後向美國證券交易委員會提交文件中所詳述的其他風險。

These reports are available at www.sec.gov. Statements and information, including forward-looking statements speak only to the date they are provided, unless an earlier date is indicated, and we do not undertake any obligation to publicly update any statements or information, including forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

上述報告可於 www.sec.gov 查閱。除非另有指明較早日期，否則各項陳述與資訊（包括前瞻性陳述）僅截至其提供之日有效；除法律要求外，我們不承擔公開更新任何陳述或資訊（包括前瞻性陳述）的義務，不論係因新資訊、未來事件或其他原因所致。

Now let me hand the call over to Ilan Danieli, Precipio, CEO.

現在我把電話交給 Precipio 執行長 Ilan Danieli。

Good afternoon, everyone, and thank you for joining us today for Precipio's Q1 2026 shareholder update call. On today's call, we'll walk through our financial results, provide an update on our operations and commercial progress. And then for the first time and following requests from several of our shareholders, we're going to open it up for a live Q&A from the audience.

各位下午好，感謝各位今天參加 Precipio 2026 年第一季股東最新進展電話會議。在今天的電話會議中，我們將回顧財務結果，並提供營運與商業進展的最新情況。接著，這也是首次，應多位股東的要求，我們將開放現場觀眾即時問答（Q&A）。

At the end of my remarks, the operator is going to take over and provide instructions for those who want to ask a question. Before reviewing the quarterly financials for Q1, I'd like to take a moment to step back and discuss where we believe the company is in the execution of its strategy.

在我發言結束後，接線員將接手並提供想提問者的操作說明。在檢視第一季的季度財務數字之前，我想先退一步，花點時間談談我們認為公司在執行其策略方面所處的位置。

Our mission at Precipio is centered around advancing cancer diagnostics and delivering faster, more accessible and more actionable testing solutions to laboratories and clinicians. What makes our model unique is that we're not only developing products in isolation.

Precipio 的使命聚焦於推動癌症診斷的進步，並為實驗室與臨床醫師提供更快速、更易取得且更具可行動性的檢測解決方案。我們模式的獨特之處在於，我們不僅僅是孤立地開發產品。

By operating our own clinical laboratory, we identify real-world diagnostic challenges firsthand, validate solutions rapidly in a clinical environment. And then once our products have demonstrated their clinical, operational and financial value, we commercialize them to the broader market. Over the past several quarters, we've continued to strengthen both sides of that model.

透過營運我們自有的臨床實驗室，我們能第一手辨識真實世界的診斷挑戰，並在臨床環境中快速驗證解決方案。接著，一旦我們的產品證明其臨床、營運與財務價值，我們便將其商業化推向更廣泛的市場。在過去幾個季度，我們持續強化該模式的兩個面向。

Our pathology business continues to provide a stable and growing operational foundation while generating cash flow to the company. And our products business and expanding commercial infrastructure are positioning the company for scalable, long-term growth, margin increase and cash generation. Before we get to the numbers, I'd like to take a moment to discuss a topic that several people have raised, and that is the variability and predictability of the company's revenues. Let's break it down by division, starting with pathology services. Generally speaking, the pathology services business is relatively predictable.

我們的病理業務持續提供穩定且成長中的營運基礎，同時為公司帶來現金流。而我們的產品業務與持續擴張的商業基礎設施，正使公司具備可擴展的長期成長、毛利率提升與現金創造能力。在進入數字之前，我想花點時間談談幾位人士提出的一個議題，也就是公司營收的波動性與可預測性。我們按事業部門拆解，先從病理服務開始。一般而言，病理服務業務相對可預測。

Once we win a customer, they usually have a consistent number of patients coming in. There's a relatively consistent percentage of the patients that will require some sort of biopsy, which is sent to our lab. Testing modalities are pretty standard. We control costs extremely well, so there isn't much variance there. The same goes for revenue build, reimbursement and cash collected all quite predictable.

一旦我們贏得客戶，他們通常會有穩定的就診人數。在這些病患中，會有相對固定的比例需要某種形式的活檢，並送至我們的實驗室。檢測方式相當標準化。我們對成本控管極為嚴格，因此在成本方面變動不大。營收形成、給付（reimbursement）以及實際收現也都相當可預測。

There are two elements that are outside of our control and can cause fluctuations in the division performance. The first is customer transition. For example, a physician may retire or the practice may get acquired by a large hospital network that internalizes testing. In those situations, the patient's sample flow from that customer will stop. The second element, which we experienced this quarter is a change to reimbursement.

有兩個不在我們控制範圍內的因素，可能造成該事業部表現的波動。第一個是客戶轉換。例如，醫師可能退休，或診所被大型醫院體系收購並將檢測內部化。在這些情況下，來自該客戶的病患樣本流量將會停止。第二個因素，也是我們本季所遇到的，是給付標準的變動。

Each year, usually in January, CMS comes out with its new fee schedule. As a government organization, there's no negotiations. So the new fee schedule basically becomes our new pricing. As you can imagine, there are very few rate increases. And usually, it goes the other way.

每年通常在一月，CMS 會公布新的費用表。作為政府機構，並不存在協商空間。因此新的費用表基本上就成為我們新的定價。如各位所想，調升費率的情況非常少。而且通常是往相反方向。

In early Q1 of this year, the new 2026 CMS fee schedule was released and it included a reduction of 8% in the fee for one of our most frequently used tests, flow cytometry. Subsequently, we had to write down revenue this quarter to the tune of approximately $0.5 million creating a significant swing in net income from the prior quarter.

在今年第一季初，新的 2026 年 CMS 費用表發布，其中將我們最常使用的檢測之一——流式細胞儀（flow cytometry）——的費用下調了 8%。因此，我們本季必須認列約 50 萬美元的營收減記，導致淨利相較前一季出現顯著波動。

So while there was no change to our customer base or patient sample volume, the new fee schedule introduced by CMS impacted our revenue, net income and gross margins. We've been working on several projects to reduce our operating costs and bring back up that margin, essentially reversing the impact of the fee schedule. And as you saw, our cash flow from operations was still positive.

因此，雖然我們的客戶基礎或病患樣本量並未改變，但 CMS 推出的新費用表仍影響了我們的營收、淨利與毛利率。我們一直在推動多項專案以降低營運成本並把毛利率拉回來，基本上就是抵銷費用表的影響。而如各位所見，我們來自營運的現金流仍為正值。

So that essentially covers drivers of variability in the pathology services business. On the product side, generally speaking, once the customer is live and operating, revenues are quite stable and predictable. This quarter, we saw an $80,000 decline in revenue from the prior quarter, and this was due to one of our main customers shifting the date of their order from the end of March to early April. So while nothing changed from a customer perspective, following the principles of revenue recognition, of course, this order will be part of Q2 revenue. This is one relatively small factor that can cause fluctuations within the products business.

以上基本涵蓋了病理服務業務波動性的驅動因素。在產品端，一般而言，一旦客戶上線並開始運作，營收相當穩定且可預測。本季我們的營收較前一季減少 8 萬美元，原因是我們的一位主要客戶將其下單日期從 3 月底延後到 4 月初。因此，雖然從客戶角度並無任何改變，但依照收入認列原則，該筆訂單當然會計入第二季營收。這是產品業務中一個相對較小、但可能造成波動的因素。

The second and more challenging variable is the onboarding process for customers. We've discussed this in the past and shift, stories ranging from IT roadblocks to machine downtime during validations. I know many of you have inquired about guidance and forecasting, and I do think that as we grow the customer base and gain more experience, we will be able to better predict our future growth. Also, with a new commercial team building a broader pipeline that will help us gain better insight into future growth as well. I'll add more on the pipeline later in this call.

第二個、也更具挑戰性的變數，是客戶導入（onboarding）流程。我們過去曾討論過，情況各異，從 IT 障礙到驗證期間機器停機等。我知道許多人詢問過指引（guidance）與預測，我確實認為，隨著我們擴大客戶基礎並累積更多經驗，我們將能更好地預測未來成長。此外，新的商業團隊正在建立更廣泛的商機管道（pipeline），也將幫助我們更深入掌握未來成長。我會在本次電話會議稍後補充更多關於 pipeline 的內容。

Even within the products business, those fluctuations are mostly related to initial setup of the customer. And once the customer is live, there are far few fluctuations and revenue is more predictable. So as we grow our customer base and get more experience under our belt. I do think we will eventually reach the point where we can get, begin to become more comfortable in predicting revenue growth. In summary, as with any business, which deals with fluctuations both internal, but in our situation, more from external factors that are largely outside of our control.

即使在產品業務內，這些波動多半也與客戶初期建置相關。而一旦客戶上線，波動就會少得多，營收也更可預測。因此，隨著我們擴大客戶基礎並累積更多經驗。我確實認為，我們最終會達到一個階段，能夠開始更有把握地預測營收成長。總結而言，如同任何企業一樣，都會面臨內部的波動；但就我們的情況而言，更多是來自我們在很大程度上無法控制的外部因素。

However, they are more prevalent in the pathology business, pathology services business in the products business, which is yet another reason why the products business is our growth focus. With that, let's turn to a review of our financial results for the quarter. Total revenue for Q1 remained flat quarter-over-quarter at $6.71 million and up over 30% from the same quarter last year. Pathology revenue increased a little over $6 million this quarter from $5.9 million in the previous quarter and up 36% from $4.4 million in Q1 of last year. Product revenue decreased by $80,000 from $740,000 to $660,000 this quarter, impacted by the timing of our customer shipment originally expected later in the quarter that moved into Q2.

然而，它們在病理業務、產品業務中的病理服務業務更為普遍，這也是我們將產品業務作為成長重點的另一個原因。接下來，讓我們回顧本季的財務表現。第一季總營收較上一季持平，為 671 萬美元，較去年同期成長逾 30%。本季病理營收略高於 600 萬美元，較上一季的 590 萬美元增加，並較去年第一季的 440 萬美元成長 36%。本季產品營收由 74 萬美元降至 66 萬美元，減少 8 萬美元，主要受客戶出貨時點影響；原預期在本季較晚出貨的訂單改至第二季出貨。

From an accounting standpoint, that revenue shifts quarter from a business standpoint, nothing really has changed. More importantly, the quarter reflects continued progress in areas we believe are the strongest indicators of future growth particularly commercial expansion, distributor engagement and pipeline development, marking a foundational quarter for our expanded commercial strategy, I'd like to take a few moments to discuss those results.

從會計角度來看，該營收在季度間移轉；但從業務角度來看，實際上並沒有真正改變。更重要的是，本季反映出我們在未來成長最關鍵的指標上持續取得進展，尤其是商業拓展、經銷商互動與管線開發；本季可說是我們擴大商業策略的奠基季度，我想花幾分鐘說明這些成果。

As we mentioned, we recently invested in hiring a dedicated commercial team focused on accelerating adoption of our proprietary product portfolio through distributor relationships and direct customer engagement. Given the onboarding and sales cycle associated with molecular diagnostic products, the team's initial focus has been on building relationships and educating our distribution partners, identifying qualified target accounts and developing a scalable pipeline. This takes place via a process that begins primarily with our distributors.

如同我們提到的，我們近期投資聘用了一支專職商業團隊，透過經銷商關係與直接客戶互動，加速採用我們的專有產品組合。考量分子診斷產品的到職導入與銷售週期，團隊初期重點放在建立關係並教育我們的經銷夥伴、辨識合格的目標客戶，以及建立可擴展的銷售管線。這項工作主要是從我們的經銷商開始的流程。

As we've described in the past, our team has to first form relationships with the distributor reps and familiarize them with our company, with our value proposition and with our product offering. Once that occurs, they can begin to review with each rep their territory and identify qualified potential leads. The way we qualify leads is through a pretty straightforward process. First, we ensure that the customer has existing cancer diagnostic operations and is either running some of the test, our products can replace in-house or most likely sending them to an outside lab. This establishes the customer as an appropriate target lab.

如我們過去所述，我們的團隊必須先與經銷商業務代表建立關係，並讓他們熟悉我們公司、我們的價值主張以及我們的產品供應。完成後，他們就能與每位業務代表一起檢視其負責區域，並辨識合格的潛在線索。我們篩選線索的方式相當直接。首先，我們確認客戶已具備癌症診斷相關作業，且不是自行執行部分可由我們產品取代的檢測，就是更可能將檢測送至外部實驗室。如此即可將該客戶確立為合適的目標實驗室。

Once we've established that, we learn which products they're interested in, and their annual volumes to assess and assign an estimated annual dollar revenue potential based on their existing testing volume for our panels. The annual revenue potential number, this account now becomes a qualified lead and we begin to work together with the distributor rep of arranging an introductory meeting to start the sales process.

在確立之後，我們會了解他們對哪些產品有興趣，以及其年度量能，並依其現有對我們檢測面板的測試量，評估並給出預估的年度美元營收潛力。有了年度營收潛力數字後，該帳戶就成為合格線索；接著我們會與經銷商業務代表合作安排首次介紹會議，以啟動銷售流程。

That work started with the hire of the commercial team at the start of the year and is already beginning to produce measurable results. During Q1, the commercial team established relationships with approximately 20 new distributor reps identified two, sorry, 10 new qualified customer opportunities. and added approximately $3 million of annualized revenue potential to the pipeline.

這項工作自年初聘用商業團隊後展開，且已開始產生可衡量的成果。第一季期間，商業團隊與約 20 位新的經銷商業務代表建立關係，辨識出兩個，抱歉，是 10 個新的合格客戶機會，並為管線新增約 300 萬美元的年化營收潛力。

Combined with existing opportunities, our current commercial pipeline now represents approximately $10 million in annualized revenue potential. Now as a reminder, this does not translate into a forecast of $10 million for this year because the x factor, we don't know is when each customer will go live. But we do feel this represents a thorough and responsible process for targeting customers and generating a sales funnel and future pipeline.

加上既有機會，我們目前的商業管線合計約代表 1,000 萬美元的年化營收潛力。提醒一下，這並不等同於今年就能預測達到 1,000 萬美元，因為有個 X 因素：我們不知道每位客戶何時會正式上線。但我們確實認為，這代表一套完整且負責任的流程，用於鎖定客戶、建立銷售漏斗與未來管線。

We believe this is particularly encouraging given that the sales team only joined at the start of the year and initially underwent extensive training on our technology, product portfolio, market dynamics and competitive positioning. Many of these early results validate both the market opportunity as well as our commercial strategy.

我們認為這尤其令人鼓舞，因為銷售團隊是在年初才加入，並在初期接受了關於我們技術、產品組合、市場動態與競爭定位的密集訓練。這些早期成果在市場機會與我們的商業策略兩方面都提供了驗證。

As the team continues expanding distributor relationships and converting qualified opportunities into active customers, we expect the pipeline to continue to grow as well as also increase converting into recurring revenue. Now let's turn to profitability and margins. Adjusted EBITDA for the quarter was negative $200,000 compared with positive $960,000 in Q4 of 2025, a relatively large swing, I'd like to take a few moments to discuss. Importantly, the majority of that sequential change was driven by a combination of timing-related items, nonrecurring accounting impacts and investments we're making to support future growth. There were four primary factors impacting Q-over-Q EBITDA change.

隨著團隊持續擴大經銷商關係，並將合格機會轉化為活躍客戶，我們預期管線將持續成長，並且轉化為經常性營收的比例也會提升。接下來談獲利能力與毛利率。本季調整後 EBITDA 為負 20 萬美元，相較於 2025 年第四季的正 96 萬美元，出現相對大的波動，我想花幾分鐘說明。重要的是，這個連續季度變動的大部分，來自時點相關項目、一次性會計影響，以及我們為支持未來成長所做的投資。影響 EBITDA 季對季變化的主要因素有四項。

First, as discussed, this quarter, we experienced reimbursement-related impact tied to the change in certain CMS pathology billing codes which reduced our gross profit, our gross profit by approximately $125,000. Second, the hiring of our commercial team resulted in an increase of approximately $250,000 for the quarter. This includes payroll, travel and business development expenses as well as marketing activities.

第一，如前所述，本季我們受到與給付相關的影響，係因部分 CMS 病理計費代碼變更，導致我們的毛利約減少 12.5 萬美元。第二，聘用商業團隊使本季費用增加約 25 萬美元。其中包含薪資、差旅與業務開發費用，以及行銷活動。

As we shared, we're already, we've already seen commercial benefits from this hiring in terms of the pipeline growth. Importantly, we view this not only as incremental overhead, but as a strategic investment in building the commercial platform necessary to scale our products business over the coming years.

如我們分享的，我們已經從這次招募中看到商業面的效益，體現在管線成長上。重要的是，我們不僅將其視為額外的管理費用，更視為一項策略性投資，用以建立未來數年擴大產品業務所需的商業平台。

In other words, once this team begins to generate increased revenue of, let's say, $1 million per quarter, the investment of $0.25 million per quarter will certainly have paid off. Third, in Q4 2025, we benefited from a onetime nonrecurring accounting adjustment related to previously accrued bonus compensation, which created an approximately $360,000 positive swing in adjusted EBITDA compared to the current quarter. And lastly, we saw a $280,000 reduction in product gross profit related to the delivery timing shift from late Q1 to early Q2 and reduced production volumes. From a business activity perspective, this revenue was not lost. It simply moved across reporting periods.

換言之，一旦這個團隊開始帶來例如每季增加 100 萬美元的營收，那麼每季 25 萬美元的投資肯定就回本了。第三，在 2025 年第四季，我們受惠於一項一次性、非經常性的會計調整，與先前已提列的獎金薪酬相關，使調整後 EBITDA 相較本季出現約 36 萬美元的正向擺動。最後，我們看到產品毛利減少 28 萬美元，原因是交付時點由第一季末移至第二季初，以及生產量下降。從業務活動角度來看，這筆營收並未流失。它只是跨越了不同的報導期間。

The combination of these factors caused a $1 million swing in EBITDA. But as you can see, a significant dollar amount to these are onetime changes that are unrelated to the company operations. Moving now to discuss gross margins. Company gross margin for the quarter was 40% compared to 47% in Q4. As with EBITDA, we believe it's important to distinguish between structural margin pressure and temporary or investment-driven impacts.

這些因素合計造成 EBITDA 出現 100 萬美元的擺動。但如各位所見，其中相當大一部分金額屬一次性變動，與公司日常營運無關。接著談毛利率。本季公司毛利率為 40%，相較第四季的 47%。如同 EBITDA，我們認為重要的是要區分結構性的毛利壓力，以及暫時性或投資驅動的影響。

The margin compression this quarter was primarily associated with the same factors we just discussed. Revenue timing, reimbursement changes and investments in commercial capacity that are now largely in place. Also, Q4 margins were somewhat inflated due to overproduction of products in Q4 relative to Q1 due to the expected equipment downtime for maintenance as we stated previously.

本季毛利率下滑主要與我們剛討論的相同因素有關。包括營收時點、給付變更，以及目前大致已到位的商業產能投資。此外，第四季毛利率也因第四季相對於第一季的產品超量生產而略為偏高，原因是如先前所述，我們預期設備將因維護而停機。

Resumption of regular production volume and continued growth will bring a return to higher margins, which are inherent in the underlying economics of this business. What gives us confidence going forward is that many of these costs are relatively fixed in nature.

恢復正常生產量並持續成長，將使毛利率回到較高水準，這是此業務底層經濟性所固有的特徵。讓我們對未來有信心的是，這些成本中有許多本質上相對固定。

So as revenue grows, particularly in the product segment, we believe the business has the potential to generate meaningful operational leverage. Overall for the business, we would expect company margins to not only recover as product revenue scales, but over time, potentially improve beyond historical levels as the revenue mix increasingly shifts to our proprietary products and product-driven services.

因此，隨著營收成長，特別是在產品部門，我們相信公司有潛力產生顯著的營運槓桿。就整體業務而言，我們預期隨著產品營收規模擴大，公司毛利率不僅會回升，且隨著營收組合愈來愈轉向我們的自有產品與以產品驅動的服務，長期而言甚至可能優於歷史水準。

Turning briefly to cash flow. Total cash flow for the quarter was negative approximately $40,000, while cash flow from operations remained positive at approximately $60,000. This pattern is generally consistent with what we historically seen in the first quarter of the year, driven primarily by a combination of start of the year annual expense resets along with slower collections associated with patient insurance deductible cycles.

接著簡要談談現金流。本季總現金流約為負4萬美元，而營運活動現金流仍為正，約6萬美元。這種型態大致符合我們過去在每年第一季所見的情況，主要是由年初年度費用重置，以及與病患保險自付額週期相關的收款較慢等因素共同造成。

Importantly, we don't view the quarter's cash flow performance as an indicative of any structural change in the business, but rather normal seasonality that we expect to normalize as the year progresses. So looking ahead, a couple of points I want, I'd like to make.

重要的是，我們不認為本季現金流表現代表業務出現任何結構性變化，而是我們預期會隨著年度推進而回歸正常的季節性因素。因此展望未來，我想提出幾點。

First, we expect continued expansion of our commercial pipeline and increased conversion of that pipeline into revenue during the second half of the year. Second, we expect margins to improve as recent commercial investments begin contributing more meaningfully to revenue growth and we scale up production. And finally, overall, we expect stronger operational performance as we move through the balance of 2026.

第一，我們預期商業管線將持續擴大，並在下半年加速將該管線轉化為營收。第二，隨著近期商業投資開始對營收成長做出更具實質的貢獻，且我們擴大生產規模，我們預期毛利率將改善。最後，整體而言，隨著我們走過2026年剩餘期間，我們預期營運表現將更為強勁。

While quarterly results may fluctuate at times due to reimbursement dynamics, shipment timing or seasonality, we do believe the broader trajectory of the business remains very positive. We're continuing to grow our commercial reach, expand our pipeline, strengthen our product platform and invest in the infrastructure we believe necessary to build a substantially larger and more scalable business over time. And with that, I'm going to hand it over to the operator to open up the call for questions. Operator, please go ahead. Thank you.

雖然季度結果有時可能因報銷動態、出貨時點或季節性而波動，但我們確信公司整體發展軌跡仍非常正向。我們持續擴大商業觸及、拓展管線、強化產品平台，並投資我們認為隨時間推進打造更大且更具可擴展性業務所必需的基礎設施。接下來，我將把電話交給接線員，開放提問。接線員，請開始。謝謝。

(Operator Instructions)

(接線員指示)

Thank you, Chloe. Meanwhile, as we build this roster, there's a couple of questions that were sent in, in advance of the call. So I'm going to go through those and then we can go to the live Q&A. So the first question was, can you elaborate on the utilization rate of your labs? Or in other words, how much more revenue can your current laboratories generate without significant CapEx?

謝謝你，Chloe。同時，在我們整理提問名單的期間，有幾個問題是在會議開始前先行寄入的。所以我會先逐一回覆這些問題，之後再進入即時問答。第一個問題是：你們能否說明實驗室的使用率？換句話說，在不需要重大資本支出（CapEx）的情況下，你們現有實驗室還能產生多少額外營收？

We're currently operating pathology services business at approximately $24 million on an annualized basis. We believe that, and this depends on the case mix. We have between $45 million to $50 million in laboratory capacity before we need to make any changes that involve any significant CapEx or hiring. Second question, in your recent corporate deck, there's a slide that mentions the expansion potential of your technology into broader multimillion dollar markets. Is there a specific road map for these expansion plans?

我們目前的病理服務業務以年化計算約為2,400萬美元。我們認為這也取決於案件組合（case mix）。在不需要進行任何涉及重大資本支出或增聘人員的變更之前，我們的實驗室產能約可支撐4,500萬至5,000萬美元的營收。第二個問題：在你們近期的公司簡報中，有一頁提到你們的技術可擴展至更廣泛、規模達數千萬美元的市場。針對這些擴張計畫，是否有具體的路線圖？

And if yes, how much additional CapEx and R&D expenses is foreseen with which kind of financing? So that's a really important question, and it really gets to the core of how we think about the long-term evolution of Precipio. Today, our primary focus remains execution within our existing product portfolio and the markets we already serve. Even within our current addressable market, we're still at the very early stages of market penetration. So to put that in perspective, our products business generated just under $3 million in revenue last year.

若有，預計需要多少額外的資本支出與研發（R&D）費用，以及將採用何種融資方式？這是非常重要的問題，也切中我們如何看待Precipio長期演進的核心。目前，我們的主要重點仍是把既有產品組合與我們已服務的市場執行到位。即使在我們目前可觸及的市場中，我們仍處於市場滲透的非常早期階段。舉例來說，我們的產品業務去年營收略低於300萬美元。

And this is within an annual TAM of about $0.5 billion in the US. So we see a very significant runway for growth with the products we already have in place. That said, one of the reasons we referenced broad market opportunities in our corporate materials is because we believe the underlying platform would be built has applications well beyond our current hematology-focused offerings. What's unique about Precipio is not any single product, it's the model itself, the combination of a real-world clinical laboratory environment for diagnostic workflows, operational validation capabilities and commercial distribution infrastructure. We believe that over time, this model can be applied to additional areas diagnostics.

而這是在美國約5億美元的年度總可服務市場（TAM）之中。因此，對於我們已經具備的產品，我們看到非常可觀的成長跑道。話雖如此，我們之所以在公司資料中提及更廣泛的市場機會，是因為我們相信所建立的底層平台，其應用範圍遠不止於目前以血液學為主的產品。Precipio的獨特之處不在於任何單一產品，而在於其模式本身：結合真實世界的臨床實驗室環境以支援診斷工作流程、營運驗證能力，以及商業化通路基礎設施。我們相信，隨著時間推進，這個模式可以應用到更多診斷領域。

Having said that, we intend to approach expansion in a disciplined manner. Our philosophy is to continue scaling the existing product business, expand recurring revenue, strengthening cash flow generation and leverage the commercial infrastructure we're building today. As the company grows and becomes increasingly well capitalized, we believe we'll be in a strong position to selectively expand into adjacent markets without necessarily requiring the kind of large-scale R&D spending and associated capital typically associated with traditional diagnostic companies.

儘管如此，我們打算以嚴謹、紀律性的方式推進擴張。我們的理念是持續擴大既有產品業務規模、提升經常性收入、強化現金流創造能力，並善用我們目前正在建置的商業化基礎設施。隨著公司成長並且資本實力愈加充足，我們相信將能在不一定需要傳統診斷公司常見的大規模研發支出及相關資本投入的情況下，有選擇性地擴展至相鄰市場。

And I think that's a really important distinction because our development model is tightly integrated with our clinical operations, and we think we've potentially enter new markets with a lower development risk, shorter validation cycles and significantly more capital efficiency than many traditional life sciences. So in summary, while we're not announcing any specific expansion initiatives today, we do believe the long-term opportunity for the platform extends meaningfully before the markets we currently serve.

我認為這是一個非常重要的差異，因為我們的開發模式與臨床營運緊密整合；我們認為，相較於許多傳統生命科學公司，我們可能以更低的開發風險、更短的驗證週期，以及顯著更高的資本效率進入新市場。總結而言，雖然我們今天不宣布任何具體的擴張計畫，但我們確信，該平台的長期機會將顯著延伸至我們目前所服務市場之外。

All right. With that, Chloe, let's go to our first question.

好的。那麼，Chloe，我們來進入第一個問題。

Adam Hutt, Leviticus Partners.

Adam Hutt，Leviticus Partners。

Hey, guys. Thank you. It's really just a continuation of what you've been, the questions you've kind of already answered, but would you be likely in at all to open up, for instance, a facility in the Midwest or the West. Would the logistics preclude that? Or is transportation so efficient that you'll never need another facility elsewhere?

嗨，各位。謝謝。這其實是延續你們剛才已經回答過的內容：你們是否有可能在例如中西部或西部再設立一個據點？物流是否會使這樣做不可行？或者運輸效率已經高到你們永遠不需要在其他地方再設立第二個據點？

Thanks, Adam, good to hear for you. Good question. I don't think so. Logistics are, for the most part, quite good. And there really isn't a significant need to spend that kind of money to duplicate the facility. I can tell you, for example, as you know, our lab is in Connecticut. Even from New Jersey, samples get picked up by FedEx and they fly through Memphis and arrive next morning at 9 or 10 in the morning.

謝謝你，Adam，很高興聽到你的聲音。好問題。我不這麼認為。物流在大多數情況下都相當不錯。而且其實沒有很大的必要花那種錢去複製一個設施。我可以舉例說明：如你所知，我們的實驗室在康乃狄克州。即使從新澤西州，樣本也會由FedEx取件，經由孟菲斯轉運，隔天早上9點或10點就能送達。

So there really isn't much advantage even from an adjacent state. There isn't much logistic advantage to having something on the West Coast. So I think if anything, if we get to that point, we'll expand capacity, which for a large part is mostly on the CapEx kind of equipment side and at those revenue levels, it's a very efficient process

因此，即使是相鄰州，其實也沒有太多優勢。在西岸設點也沒有太大的物流優勢。所以我認為，如果真的走到那一步，我們會擴充產能；而在很大程度上主要是資本支出（CapEx）的設備面向，在那樣的營收水準下，這會是一個非常有效率的流程。

So New Haven would expand, no Los Angeles facility, okay.

所以會擴充New Haven，不會設洛杉磯據點，了解。

No, no. No, there's no need for that.

不，不用。不，沒有那個必要。

Thank you.

謝謝。

All right. Chloe, it seems like that's the only question.

好的。Chloe，看起來那是唯一的問題。

Thomas Duxbury.

Thomas Duxbury。

Hi, Ilan, congrats on the continued ramping and cash flow management of the company. I guess could you give us a little bit more color on the ramp, especially on the product side from Q2 onward through the rest of the year? I assume with that order shifting into Q2 into April that Q2 will obviously be up from Q1. And hopefully, with the commercial team that you have now in place, that we will see even better loaded back half of the year? Thank you.

嗨，Ilan，恭喜公司持續放量成長以及現金流管理做得很好。我想請你再多補充一些關於放量的細節，特別是從第二季開始到今年剩餘時間在產品端的進展？我猜隨著那筆訂單移到第二季、落在四月，第二季顯然會比第一季高。也希望在你們現在已到位的商務團隊帶動下，我們會看到下半年出貨/營收動能更強？謝謝。

Yes. Tom, good to hear for you. And yes, I hope so too. I think, the commercial team has probably had already a better-than-expected impact in Q1, as I mentioned, keep in mind, the only those four months and I would say at least half of that time has been for training. So to add about $3 million of pipeline is great, and I think that, that's only increase over time.

是的。Tom，很高興聽到你的聲音。是的，我也希望如此。我認為商務團隊在第一季可能已經帶來了超出預期的影響；如我提到的，請記得他們其實只有四個月左右，而且我會說至少有一半時間是在受訓。所以能新增約300萬美元的銷售管線很棒，我認為這只會隨時間持續增加。

Of course, the X factor is how long does it take to translate that $3 million of pipeline into $3 millions of revenue. And this is where it gets really difficult because a lot of those factors are out of our control. So as an example, we had a customer, I just spoke with a customer this morning, who has completed the validation and is ready to go live from a technical standpoint, what they're now waiting for is to set up a meeting with all the physicians to teach them how to order the new test of the system.

當然，X 因素在於：要花多久才能把這300萬美元的管線轉化為300萬美元的營收。而這就變得非常困難，因為其中很多因素不在我們控制範圍內。舉例來說，我們有一位客戶——我今天早上才跟一位客戶通話——他們已完成驗證，從技術角度來看已準備上線；他們現在在等的是安排一場與所有醫師的會議，教他們如何在系統中下單新的檢測。

It sounds mind-numbingly ridiculous, quite frankly, but those are things they face. And this is a huge organization, so they have these meetings once a quarter, and that hasn't been scheduled yet. So this meeting could happen next week, and the customer goes live. This meeting could happen in July and then the customer goes live.

坦白說，聽起來荒謬到令人麻木，但這就是他們面臨的事情。而且這是一個非常龐大的組織，所以他們這類會議每季才開一次，而目前還沒排程。所以這場會議可能下週就開，客戶就上線。也可能七月才開，然後客戶才上線。

So it's really hard to kind of figure out what is the time line for these customers to transition from readiness to go live and when that translates into revenue. I think the best thing I can offer, efficient. So if the customer says, hey, we want to order $100,000 of products next week, we can deliver that. Unfortunately, things we can only control what we can control. So I hope that helps.

因此，很難去判斷這些客戶從「已準備上線」到真正上線的時間表，以及何時會轉化為營收。我能提供的最好承諾是：我們的執行效率很高。所以如果客戶說「嘿，我們下週要訂10萬美元的產品」，我們可以交付。不幸的是，我們只能控制我們能控制的部分。希望這有幫助。

Thank you.

謝謝。

Thank you.

謝謝。

Adam Hutt, Leviticus Partners.

Adam Hutt，Leviticus Partners。

One for the road, boys. I'm familiar with the company called Interpace that had a pancreatic cancer test. They pretty much got knocked out by the insurance companies. Stock has been a big, big wealth destructor. Obviously, the blood cancers, I think, are probably, you're able to show much more efficacy and return of the dollar, I think, than a particular pancreas test. Should any of us be losing sleep over the insurance monster that's a bit of a bugaboo this quarter?

最後一題，各位。我知道有家公司叫 Interpace，他們有一個胰臟癌檢測。他們幾乎被保險公司打趴了。那檔股票一直是很大的財富毀滅者。顯然血液癌症方面，我想你們應該能比某個特定的胰臟檢測更清楚地證明療效與每一美元的回報。這一季關於「保險怪獸」這個讓人頭痛的問題，我們任何人需要因此睡不著覺嗎？

Thank you, Adam. Yes. So I don't know if losing sleep, but it's always a concern because they are the payers, and they are the ones who ultimately decide. It's not a usual kind of supply and demand model. It's really the payers kind of determine what the revenue or where payments are going to be.

謝謝你，Adam。是的。所以我不知道是否到「睡不著覺」的程度，但這一直是個關切，因為他們是付款方（payers），也是最終做決定的人。這不是一般的供需模型。基本上是付款方在決定營收會是多少、或付款會流向哪裡。

Having said that, all of our products and certainly all of our services use established CPT codes. I'm not familiar with Interpace, but if there's a company that doesn't have an established CPT code or it's a new code that was just assigned, there's a lot of uncertainty around that. And I don't really think that exists. Our test and the codes we used are long ago established codes and they're not going anywhere. They're supported by thousands of pages of clinical validated data.

話雖如此，我們所有產品，當然也包括我們所有服務，都使用既有、已建立的 CPT 代碼。我不熟 Interpace，但如果有公司沒有既有的 CPT 代碼，或是剛被分配的新代碼，那就會有很大的不確定性。而我不認為我們這裡存在那種情況。我們的檢測以及所使用的代碼，都是很久以前就建立的代碼，不會消失。它們有數千頁臨床驗證資料支持。

So I think in that sense, are there going to be rate fluctuations like we saw? Sure. And we, as a company, have to respond by being more efficient to keep that margin, and we're doing exactly that. But I don't think it's going to be a situation where they're going to say, yes, you know what, we're not testing for acute leukemia and we're not paying for that anymore. We're not paying for that anymore. I don't think that's going to happen. So I think relatively speaking, we're okay.

所以在這個意義上，費率會不會像我們看到的那樣波動？當然會。而我們作為公司必須透過提升效率來回應，以維持毛利率，我們也正是這麼做。但我不認為會出現他們說「是的，你知道嗎，我們不再做急性白血病檢測了，我們也不再為此付款」的情況。我們不再為此付款。我不認為那會發生。所以相對而言，我們是可以的。

Can you fight, do you have any restitution against the rate at which they try and, you do. What can you do besides just margin from within? You can't really see the insurance companies, can you?

你們能反擊嗎？對於他們試圖壓低費率的做法，你們有任何追索或補償的途徑嗎？除了從內部把毛利做出來之外，你們還能做什麼？你們也不可能真的去告保險公司，對吧？

No, you can't. No, you can't. So that's pretty much it. And for the most part, we haven't really seen anything egregious just when there's clinically supported data. It's usually relatively stable. And this is kind of the first drop that we've seen in 15 years of operating. It's an 8% drop on one of our tests. It's a frequently run test, but it's an 8% drop. So I think, in general, this is a pretty stable field.

不，你不能。不，你不能。所以基本上就是這樣。而且大多數情況下，只要有臨床支持的資料，我們其實沒有看到什麼太離譜的情況。通常相對穩定。而這算是我們營運15年來第一次看到下調。是我們其中一項檢測下調8%。那是一個很常做的檢測，但就是下調8%。所以我認為整體而言，這是一個相當穩定的領域。

Thank you.

謝謝。

All right, there are no questions at this time. This concludes today's conference. Thank you for attending. You may now disconnect.

好的，目前沒有問題。今天的電話會議到此結束。感謝各位參與。您現在可以掛線。