Singular Genomics Systems, Inc. (OMIC): Business Model Canvas [Dec-2025 Updated]

When a company like Singular Genomics Systems, Inc. (OMIC) pivots hard-going private with Deerfield Management in early 2025 to chase the spatial multiomics gold rush-you know the underlying business model has fundamentally changed. This isn't the early-stage NGS play anymore; it's a calculated dual-platform strategy centered on the G4X, aiming to convert capital equipment sales into sticky, recurring reagent revenue. Honestly, understanding how they plan to scale from a $2.66 million trailing revenue base while managing high R&D costs is key to assessing their near-term viability, so let's break down the nine building blocks of this new structure right now.

Singular Genomics Systems, Inc. (OMIC) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that underpin Singular Genomics Systems, Inc. post-acquisition. Honestly, the most concrete numbers we have right now relate to the financial structure set by the primary investor and a key technology supplier.

Deerfield Management Company, L.P. (Acquirer/Primary Investor)

Deerfield Management Company, L.P. finalized its move to take Singular Genomics Systems, Inc. private. The definitive agreement, signed December 23, 2024, set the cash consideration at $20.00 per share for all outstanding common stock not already owned by Deerfield. The transaction officially closed on February 21, 2025, following shareholder approval on February 19, 2025. So, the immediate financial relationship is defined by this $20.00 per share exit valuation for public shareholders.

Technology Access Partners (TAP) like Dana-Farber and Broad Institute & Early Access Program sites (e.g., Vanderbilt, Beth Israel Deaconess)

Singular Genomics Systems, Inc. empowers researchers and clinicians with its next-generation sequencing (NGS) and spatial multiomics technologies. The company's G4® Sequencing Platform is central to these collaborations. While the G4® Sequencing Platform is a core asset used by these academic centers, specific 2025 financial or usage statistics detailing the dollar value or volume of sequencing runs attributable to Dana-Farber, Broad Institute, Vanderbilt, or Beth Israel Deaconess are not publicly itemized in the latest disclosures.

• G4® Sequencing Platform is commercially available.
• Technology is used by researchers and clinicians.
• Transition to private status allows greater strategic flexibility.

Third-party library prep kit providers (e.g., Watchmaker Genomics)

Partnerships with third-party providers are critical for expanding the utility of the G4 Sequencing Platform. Watchmaker Genomics, for instance, has a direct integration. Singular Genomics Systems, Inc. partners with Watchmaker Genomics to enable the Watchmaker DNA Library Prep Kits for the G4 Sequencing Platform. To give you some context on Watchmaker's own financial backing, they previously raised a $40M Series A round on June 2, 2022, bringing their total funding at that time to $53.5M. This type of supplier relationship ensures a broader, more robust ecosystem for the platform's consumables.

Here's a quick look at the quantifiable partnerships we can map right now:

Finance: draft 13-week cash view by Friday.

Singular Genomics Systems, Inc. (OMIC) - Canvas Business Model: Key Activities

You're looking at Singular Genomics Systems, Inc. (OMIC) after its transition to a private company in February 2025, backed by Deerfield Management. This shift means the focus for Key Activities is now intensely on scaling the G4X platform, which is where the real value creation is supposed to happen. Here's the breakdown of what the team is actively driving as of late 2025.

Research and Development (R&D) for G4X™ Spatial Sequencer

The R&D effort is definitely centered on solidifying the G4X as the flagship product, especially since the broader launch was targeted for Q2 2025. You know that R&D burn is substantial, even post-acquisition, because spatial multiomics is a capital-intensive field. The focus isn't just on the instrument but on the integrated workflows. The team is advancing method development to ensure protocol performance for combined readout modalities-that means transcripts, proteins, and fluorescent H&E all working together seamlessly on the same section. This is the core intellectual property they are protecting.

The R&D success is measured by throughput and data quality. For instance, internal work showcased advanced 3D multi-omic reconstruction from 10 serial renal cell carcinoma FFPE sections, covering over 6.2 million cells and 438 million transcripts, all from a single G4X flow cell. That kind of density is what they are banking on to justify the platform's existence.

Manufacturing and scaling G4 and G4X instrument production

Scaling production is the immediate operational hurdle following the planned June 2025 initial shipments of the G4X. You have to remember that the G4 platform, the predecessor, had shipped a total of 30 commercial systems as of the end of Q1 2024. The key activity now is transitioning that manufacturing muscle to the G4X, which is a more complex spatial instrument. The goal is to move past the early access phase-which saw the first G4X Early Access instrument shipped in Q3 2024-and into volume production to meet the pre-orders opened in early 2025.

The manufacturing focus must ensure consistency across the high-throughput nature of the G4X. The design target for the G4X is to enable labs to process 20 times more samples per week than previous technologies, all while maintaining single-day turnaround times. Here's the quick math: scaling production directly impacts the revenue recognition schedule, especially if they continue using reagent rental models that defer most revenue until consumables are purchased.

Commercialization and sales of the G4X platform (broader launch Q2 2025)

Commercialization is all about adoption post-Q2 2025 launch. The activity here involves converting the high interest seen in the Spatial Technology Access Services funnel into actual instrument sales and, more importantly, recurring consumables revenue. The TTM Revenue as of November 2025 is reported at $2.66 Million USD, which tells you the commercial ramp is still in its very early stages, given the high-cost nature of this equipment. For context, the Q3 2024 revenue was only $0.4 million.

The sales team is pushing the value proposition of a dual-purpose machine. They are targeting research areas where high-throughput spatial analysis is critical, such as oncology and immunology cohorts. The success of this activity is what will pull the company out of the negative gross profit territory seen in Q3 2024, where gross profit was -$0.30M.

The key metrics being tracked for commercial success include:

• Initial G4X instrument placements post-June 2025.
• Consumables uptake rate per installed G4X unit.
• Service revenue from the Spatial Technology Access Services.
• Reduction in the quarterly net loss from $16.8 million (Q3 2024).

Developing proprietary Direct-Seq technology for FFPE tissue

This is a critical R&D/Product activity that underpins the G4X's differentiation. Direct-Seq is the proprietary method allowing for in situ sequencing directly on preserved tissue samples, specifically FFPE (formalin-fixed paraffin-embedded) tissue sections, without needing to extract and convert RNA into cDNA first. This capability was demonstrated as recently as February 2025 at AGBT, showing accurate T- and B-cell receptor sequencing in FFPE tonsil samples.

The development focus is on expanding the scope and robustness of this technology across different tissue types and modalities. The ability to measure transcripts, proteins, and fH&E within the same sample using Direct-Seq is what drives the high-quality 3D reconstruction data. This proprietary technology is the moat they are building around the G4X platform.

Here's a comparison of the two core platforms driving these activities:

Finance: You should model the expected consumables revenue per G4X unit based on the 438 million transcript data point to stress-test the path to margin normalization.

Singular Genomics Systems, Inc. (OMIC) - Canvas Business Model: Key Resources

You're looking at the core assets Singular Genomics Systems, Inc. has now that it's private under Deerfield Management Company, L.P. as of early 2025. These resources are what power their push into spatial multiomics.

Proprietary Sequencing Engine technology and IP

The foundation here is the unique and proprietary Next-Generation Sequencing (NGS) technology, which the company calls its Sequencing Engine. This engine is the base for all their product tenets: accuracy, speed, flexibility, and scale. The intellectual property centers on this core engine and its application in multiomics.

Key technology demonstrations as of early 2025 include:

• Leveraging proprietary sequencing for in situ readout of transcriptomics, proteomics, and fluorescent H&E on the G4X platform.
• Demonstrated Direct-Seq technology for accurate T- and B-cell receptor sequencing in Formalin-Fixed Paraffin-Embedded (FFPE) tissue samples.
• Showcased advanced 3D multi-omic reconstruction from 10 serial renal cell carcinoma FFPE sections.
• Data generated over 6.2 million cells and 438 million transcripts from a single G4X flow cell.

G4 and G4X Sequencing Platforms (installed base of 30+ G4 systems)

Singular Genomics Systems, Inc. has two integrated solutions built around its core technology. The G4 is commercially available, while the G4X is the near-term focus, moving from early access to commercial shipment.

Here's a breakdown of the platform status as of mid-2025:

The G4X Early Access Program was active in February 2025 at Beth Israel Deaconess Medical Center and Vanderbilt University Medical Center. The full commercial release was expected in the second quarter of 2025.

Specialized R&D and engineering talent in multiomics

The company's capability rests on its specialized team focused on next-generation sequencing and multi-omics. The team includes roles like the Director, R&D, such as Michael Lawson. The company was founded in 2016.

While employee counts fluctuate, historical data shows the scale of the team:

• Employee Count: 169 as of June 30, 2021.
• The focus is on developing integrated solutions for NGS, single-cell analysis, spatial analysis, genomics, and proteomics.

Financial backing from private ownership (Deerfield Management)

Singular Genomics Systems, Inc. transitioned to a private entity following its acquisition by an affiliate of Deerfield Management Company, L.P. This move, effective February 21, 2025, provides greater flexibility away from public market pressures. Deerfield is an investment management firm focused on healthcare.

Key financial transaction details include:

• Acquisition Closing Date: February 21, 2025.
• Acquisition Price: $20.00 per share in cash for non-Deerfield owned stock.
• Total Funding Raised (Pre-Acquisition): $345M.
• The transaction was valued at about $48.06 million based on the merger agreement announced December 23, 2024.

The new private structure is intended to support long-term R&D investment. Finance: draft 13-week cash view by Friday.

Singular Genomics Systems, Inc. (OMIC) - Canvas Business Model: Value Propositions

You're looking at the core value Singular Genomics Systems, Inc. is delivering to researchers now that the G4X Spatial Sequencer is coming to market after its private acquisition by Deerfield Management in early 2025. The value propositions are centered on overcoming the historical bottlenecks of speed, scale, and multi-modality in genomics.

High-throughput spatial multiomics with the G4X platform

The G4X Spatial Sequencer is the main draw here, designed to handle massive spatial biology studies. This isn't just incremental improvement; it's about scale for clinical cohort work. For instance, data presented at AGBT in February 2025 showed the G4X could generate 3D multi-omic reconstructions from 10 serial kidney cancer FFPE sections, analyzing over 6.2 million cells and 438 million transcripts-all from a single G4X flow cell. That level of data density from one run directly translates to lower costs and faster insights for large-scale translational studies.

Dual-purpose instrument for both NGS and tissue-based spatial sequencing

This platform is engineered to be a true workhorse, not a single-use device. The G4X is positioned as the industry's first dual-purpose instrument, meaning it handles both traditional Next-Generation Sequencing (NGS) applications and the newer, complex tissue-based spatial sequencing. This flexibility helps labs maximize their capital expenditure. The platform is designed to support up to 128 samples per run for spatial applications, which is a significant jump in capacity for high-volume users.

Fast, accurate, and flexible benchtop genomic sequencing (G4 platform)

The established G4 Sequencing Platform still provides the foundation for high-quality, rapid NGS, which is crucial for labs needing speed without moving to massive, dedicated machines. The G4 chemistry delivers high quality, with data showing >85% of bases at or above a quality score of Q30, and in some 2025 reports, the average was cited as above 90% of bases at or above Q30. You can see the core specs that define this value:

The G4 was designed to sequence up to four human genomes in just 16-19 hours, which was up to three times more data output per hour than contemporary benchtop instruments at its launch.

Single-cell precision analysis of complex tumor-immune interactions

The G4X's multiomics capability is where it really shines for oncology and immunology research, allowing you to map multiple data types-RNA, protein, and morphology-in their original spatial context. This is key for understanding the tumor microenvironment. The platform has demonstrated the ability to perform high-sensitivity and specificity analysis on complex samples like FFPE tissues. The system supports advanced applications like:

• 500-Plex Spatial Transcriptomics for barcode-free RNA detection.
• 18 Plex Spatial Proteomics for mapping protein expression.
• Accurate T- and B-cell receptor sequencing in FFPE samples using Direct-Seq technology.

This integrated view helps researchers see how millions of cells interact spatially, which is vital for biomarker discovery.

Reproducibility and cost-efficiency for large-scale spatial studies

For any large study, especially those moving toward translational settings, reproducibility is non-negotiable. Early access sites have specifically cited the reproducibility and cost-efficiency of the G4X as major benefits, enabling the scaling of 3D spatial analyses in larger retrospective cohorts. While the company's TTM revenue as of November 2025 was reported at $2.66 Million USD, the value proposition is focused on the customer's cost reduction through higher throughput and lower turnaround times, which drives a higher return-of-investment for core facilities. The ability to generate this high-dimensional data reproducibly across serial FFPE sections is what unlocks those large-scale 3D molecular studies.

Singular Genomics Systems, Inc. (OMIC) - Canvas Business Model: Customer Relationships

You're looking at how Singular Genomics Systems, Inc. manages its relationships with its high-value scientific customers, especially as they transition to the new G4X Spatial Sequencer. Honestly, for capital equipment in this space, the relationship is everything; it's not a one-time transaction.

Dedicated field application specialists and technical support

The relationship hinges on keeping the installed base running smoothly and helping them get the most out of the technology. For the existing G4 fleet, system uptime averaged a solid 95% during Q2 2024. This operational reliability is key to securing future consumable revenue, which is the recurring part of the model. The annualized consumables pull-through for the installed G4 base was approximately $60,000 per system in Q2 2024, which was about double the pull-through seen in Q1 2024, showing increasing customer engagement with the platform's workflow. You can reach out to the support team via the dedicated channel at care@singulargenomics.com.

Here's a quick look at the G4 installed base utilization metrics from the last reported quarter:

Early Access Programs for G4X to build advocacy and feedback

For the G4X Spatial Sequencer, the relationship strategy is centered on building strong early advocates before the broader commercial launch planned for around Q2 2025. The G4X Early Access Program was underway as of February 2025 at key institutions like Beth Israel Deaconess Medical Center and Vanderbilt University Medical Center. Singular planned to expand this program to a few more sites in Q2 2025. These early adopters are crucial; they generate the initial high-impact data and testimonials that drive later commercial demand. The initial early access units were designed to be revenue-producing, though with appropriately set expectations regarding support levels.

• Initial EAP sites included Beth Israel Deaconess Medical Center and Vanderbilt University Medical Center.
• Expansion of the EAP was planned for Q2 2025.
• The program aims to generate technical publications and Key Opinion Leader (KOL) testimonials.

Direct sales and service model for high-value capital equipment

The core of the capital equipment relationship is a direct sales approach, which is necessary for high-touch, high-value instruments like the G4 and the upcoming G4X. The G4 system shipments in Q1 2024 showed this segmentation: four units went to academic core or medical center labs, and two went to commercial labs, bringing the total G4 shipments to 30 as of March 31, 2024. This direct interaction allows Singular Genomics Systems, Inc. to manage complex installations and service agreements upfront. The model relies on driving initial adoption, followed by recurring revenue from consumables sales, as seen by the Q3 2024 revenue of $0.4 million, primarily from consumables.

Technology Access Services for initial data generation projects

To bridge the gap before G4X instrument shipments began in June 2025, the company offered Technology Access Services. Researchers could use these services to start generating multiomic data immediately. This service acts as a low-friction entry point, allowing potential customers to validate the platform's value proposition with their own samples without a capital commitment. Data from two initial Technology Access Partner projects were showcased at the AACR 2024 conference. This service funnel was cited as exceeding 50 opportunities, indicating strong inbound interest for the G4X capabilities.

The focus on services helps de-risk the capital purchase for the customer. It's a smart way to build a pipeline; you let them see the results first.

Singular Genomics Systems, Inc. (OMIC) - Canvas Business Model: Channels

You're looking at the commercial channels for Singular Genomics Systems, Inc. after its transition to a private entity under Deerfield Management in February 2025. The focus shifts from public market scrutiny to driving adoption of the G4X™ Spatial Sequencer, which had its full commercial release expected around the second quarter of 2025. The company's overall trailing twelve months (TTM) revenue as of December 2025 stood at $2.66 Million USD, which gives you the scale of the current commercial engine.

Direct Sales Force (focused on North America and key markets)

The initial commercialization strategy centered on a direct sales and marketing organization within the United States for the G4 Sequencing Platform. Post-acquisition, this direct model is the most likely path for driving adoption of the newer, high-value G4X system, especially in North America, which remains the primary focus. While the exact size of the sales team as of late 2025 isn't public, the company previously reported having 220 total employees, which provided the foundation for R&D, operations, and commercial efforts.

The plan, even pre-acquisition, included future expansion into the European Union, United Kingdom, Asia Pacific, and Japan, likely through a mix of direct sales and established distribution networks as scale permits. Right now, though, the channel investment is definitely concentrated on securing key accounts in the US.

Scientific conferences and showcases (e.g., AGBT, Spatial Summit)

Scientific engagement is a critical channel for a life sciences tool company, serving as both a marketing platform and a direct feedback loop. Singular Genomics Systems, Inc. has historically used major industry events to showcase platform performance. For instance, milestones for the G4X were highlighted through presentations at events like AGBT and SITC, which validates the technology to key opinion leaders.

These showcases are where the company converts scientific interest into pipeline opportunities. The goal is to get the G4X in front of researchers working on high-throughput spatial multiomics, a segment the global single-cell omics market is projected to grow significantly in, with instruments holding nearly 60% of that market share.

Online presence for product information and technical support

The company maintains its presence at www.singulargenomics.com for product details, technical specifications, and investor relations information, though the latter is now private. This digital channel supports the direct sales force by providing accessible technical documentation and supporting existing customers. For a company whose Q3 2024 revenue was only $0.4 Million USD, a lean, high-touch digital support structure is necessary to manage the installed base and support early G4X users without ballooning Selling, General and Administrative (SG&A) expenses.

Technology Access Services for pre-instrument adoption

This service acts as a crucial pre-sales channel, letting potential high-volume customers experience the G4X platform without an upfront capital commitment. Interest in G4X was being built via the Spatial Technology Access Services funnel, which is designed to generate data and build case studies before a full instrument sale. This model is tied to the reagent rental aspect that pressured gross margins in 2024, meaning revenue recognition is likely spread out over time, even for service-based access.

The early access program saw the shipment of the first G4X Early Access instrument in Q3 2024, demonstrating this channel was active and generating data, such as processing 6.2 million cells from a single G4X flow cell in one example. This service is the bridge between initial interest and capital equipment purchase.

Here's a quick look at the commercial context surrounding these channels as of late 2025:

The channel strategy is clearly focused on demonstrating high-throughput spatial sequencing capability through direct engagement at key scientific venues and via the Technology Access Services funnel to drive future instrument placements. The modest TTM revenue of $2.66 Million USD shows the commercial ramp is still in its early stages, even with the G4X launch underway.

• Focus on North America for initial direct sales penetration.
• Leverage high-impact scientific conferences like AGBT for platform validation.
• Utilize Technology Access Services to de-risk G4X adoption for core labs.
• Future channel expansion planned for EU, UK, Asia Pacific, and Japan.

Singular Genomics Systems, Inc. (OMIC) - Canvas Business Model: Customer Segments

You're looking at the customer landscape for Singular Genomics Systems, Inc. (OMIC) as they push their integrated sequencing and spatial multiomics platforms. The customer base is clearly segmented across the research and translational continuum, which dictates how they recognize revenue-often through initial system placements followed by recurring consumables sales, or through reagent rental models.

As of the latest reported figures (Q3 2024), the commercial traction, which reflects early customer adoption, involved shipping two G4 systems and the first G4X Early Access instrument in that quarter. The company has explicitly noted a deep services funnel across the key segments you mentioned, suggesting active engagement with all of them.

Here's a breakdown of the primary customer segments Singular Genomics Systems, Inc. (OMIC) targets with its G4 Sequencing Platform and PX Integrated Solution:

• Academic research institutions and core labs
• Biopharmaceutical companies (biopharma) for drug discovery
• Contract Research Organizations (CROs) for high-volume studies
• Translational and clinical trial settings for biomarker identification

The G4X spatial sequencer is specifically positioned to address throughput limitations in these segments. The Technology Access Partner (TAP) projects, such as those with Dana-Farber and the Broad Institute, give us concrete examples of early adopters within the academic research space.

The financial reality of these early-stage customer engagements is reflected in the Q3 2024 revenue, which was only $0.4 million, driven primarily by consumables sales, indicating that the installed base is still small and revenue recognition from capital equipment sales is not yet dominant.

The following table maps the core platforms to the customer segments and their primary application focus, using the latest available product deployment data as a proxy for current segment engagement:

For the academic segment, the installed base of G4 systems grew to 30 commercial systems by Q1 2024, showing initial penetration before the broader G4X commercial launch targeted around Q2 2025. The revenue model appears heavily weighted toward consumables pull-through, as evidenced by the Q3 2024 revenue of $0.41 million being primarily from consumables.

Finance: draft 13-week cash view by Friday.

Singular Genomics Systems, Inc. (OMIC) - Canvas Business Model: Cost Structure

You're looking at the cost side of Singular Genomics Systems, Inc.'s (OMIC) operations as they push the G4X spatial sequencer toward broader commercialization around Q2 2025. The cost structure is heavily weighted toward development and early-stage commercialization pressures.

High R&D expenses for G4X and Direct-Seq technology

The development and launch of the G4X spatial sequencer, which supports Direct-Seq technology, drives substantial operating costs. While explicit R&D figures aren't broken out separately in the latest reports, the overall operating expense base reflects this investment. Management implemented cost actions in March 2024 to lower the burn rate, but development costs remain significant.

• Q3 2024 Operating Expenses totaled $17.8 million.
• Q1 2024 cash burn was approximately $23.2 million.
• The company is focused on shifting resources to G4X development and commercialization.

Cost of Goods Sold (COGS) for instruments and consumables

The cost structure for revenue generation is challenged by aggressive pricing strategies for instruments and the nature of early-stage service/rental models. The G4 instrument price was reduced to $295,000 from an initial $350,000. The G4X system itself is listed at $495,000. Reagent costs for sequencing on the G4X start around $240 per lane for F3 100 Cycle paired reads.

Here's a look at the pricing structure for G4X customization and sequencing, which directly impacts the variable cost component of revenue:

Sales, General, and Administrative (SG&A) expenses

SG&A is bundled within the reported Operating Expenses, which management actively worked to reduce. Following cost actions, operating expenses fell year-over-year in Q3 2024. The company guided for operating expenses to be 10-15% lower sequentially in Q2 2024 compared to Q1 2024.

• Q3 2024 Operating Expenses were $17.8 million, down from $24.5 million year-over-year.
• Operating expenses in Q4 2023 totaled $24.8 million.
• Cost-saving initiatives, including a 20% workforce reduction, aimed for approximately $20 million in annualized OpEx savings.

Negative gross profit due to early-stage discounts and rental models

Singular Genomics Systems, Inc. reported negative gross profit in recent quarters, a direct consequence of its commercial strategy during the G4 and G4X transition. This pressure comes from providing discounts on capital purchases and utilizing reagent rental/evaluation models instead of upfront sales.

• Q3 2024 Gross Profit was negative $0.3 million.
• Q1 2024 gross profit was negative, attributed to discounts, reagent rental/non-capital models, and higher support costs.
• In Q4 2023, gross profit was negative $0.5 million, also due to discounts and higher installation/support costs.

Significant cash burn (Q1 2024 was around $23.2 million)

The high operating expenses and negative gross profit resulted in a significant cash burn rate in early 2024, which management took steps to mitigate to extend the cash runway. The company ended Q3 2024 with $113.8 million in cash and investments.

• Q1 2024 cash burn was approximately $23.2 million.
• Management guided for lower cash burn in Q2 2024 as cost savings took effect.
• The company expected its cash runway to extend into late 2026 following cost reduction measures.

Singular Genomics Systems, Inc. (OMIC) - Canvas Business Model: Revenue Streams

You're looking at the revenue side of Singular Genomics Systems, Inc. (OMIC) as of late 2025, post-acquisition by Deerfield Management. The model is clearly leaning toward a razor-and-blades approach, even if the initial numbers reflect a very early commercial stage.

The overall financial picture, based on the Trailing Twelve Months (TTM) ending around the time of the acquisition and subsequent period, shows a small revenue base, which is typical for a company transitioning from R&D to commercial scale with new platforms like the G4 and the newly launched G4X.

Trailing Twelve Months (TTM) Revenue as of Late 2024/Early 2025 Context:

The revenue streams are segmented by the core product strategy, which relies on getting the instrument into the lab first to secure future consumable sales. Here's how the streams break down:

• Sales of G4 and G4X Sequencing Instruments (capital purchases)
• Recurring revenue from Consumables and Reagents (pull-through)
• Instrument service contracts and support fees
• Technology Access Services (spatial services)

Sales of G4 and G4X Sequencing Instruments (Capital Purchases):

Instrument sales represent the initial, lumpy revenue component. You see this in the quarterly reports leading up to the privatization. For instance, in the second quarter of 2024, revenue included $0.3 million from one capital purchase instrument placement, alongside 2 G4 systems shipped that quarter. By the third quarter of 2024, the company shipped two G4 systems and the first G4X Early Access instrument, though instrument revenue is expected to be recognized over time as consumables are purchased. The commercial launch of the G4X was targeted for around the end of the second quarter of 2025, meaning late 2025 revenue should start reflecting initial G4X capital sales, though the focus is shifting to services and pull-through.

Recurring Revenue from Consumables and Reagents (Pull-Through):

This is the intended long-term engine. The strategy is explicitly to drive ongoing revenue by having customers purchase proprietary consumables after installing the instrument base. Consumables were the primary revenue driver in the early commercial phase. In the first quarter of 2024, revenue of $0.4 million consisted primarily of consumables sales and one instrument capital purchase. Similarly, in the third quarter of 2024, revenue of $0.4 million was reported, driven primarily by consumables sales. The annualized consumables pull-through per G4 system was noted to be roughly $60,000 in the second quarter of 2024, which was about double the rate seen in the first quarter. That recurring number is what the private ownership will be keenly watching.

Instrument Service Contracts and Support Fees:

Service contracts and support fees are a standard component for complex capital equipment. While specific dollar amounts for this stream aren't broken out separately in the public filings, these costs negatively impact gross profit when systems are placed under reagent rental or initial support is high. Post-acquisition, you can expect a more formalized structure for service contracts, likely bundled or offered as a distinct recurring fee stream to stabilize margins, especially as the installed base grows.

Technology Access Services (Spatial Services):

This represents the early monetization of the G4X platform before full commercial launch. The company launched a Spatial Sequencing Technology Access Services program in the second quarter of 2024. This service stream allows early adopters to use the G4X capabilities in-house or via a service model, generating revenue while gathering critical feedback. The interest in the G4X services funnel exceeded 50 opportunities by mid-2024, indicating a strong pipeline for this revenue category as the G4X became available.