Axe Compute Inc. Q3 FY2023 earnings call

• In March 2023, announced a research collaboration with Cancer Research Horizons to use PEDAL platform to evaluate CRH's preclinical glutaminase inhibitor drug compounds and provided initial results, a significant milestone. CRH can prioritize projects and seek licensing deals.
• Last week, completed a multiyear retrospective study with UPMC Magee-Women’s Hospital to build multi-omic machine learning models for predicting ovarian cancer survival, data to be presented in 2024, with plans to expand and utilize cohorts.
• In February 2023, partnership with Cvergenx to develop genomics-based precision radiation therapy and drug discovery, evaluated models, submitted proposals to NASA and NIH.
• Successfully developed a novel formulation for a protein drug candidate for an international pharma company. Collaborating with FluGen on a next-gen vaccine for respiratory disease, submitted Phase IIb grant to NIH. Met with 40 pharma companies at BIO-Europe, interest in formulation services, endotoxin product, and HFC platform.
• Making progress on a novel method to express and stabilize GPCR. Has an active biologics business providing formulation development and quality control testing. Created a Business Advisory Board with two members, seeking more diverse candidates.

In Q3 2023, revenue was $715,000 compared to $456,000 in Q3 2022. Gross margin in Q3 2023 was 85% vs. 76% in Q3 2022. Cash and cash equivalents at September 30, 2023 were $11.9 million vs. $22.1 million on December 31, 2022. Stockholders' equity at September 30, 2023 was $11.7 million vs. $21.8 million on December 31, 2022. Net cash used in operating activities for the nine months ended September 30, 2023 was $10.1 million vs. $9.1 million in the comparable period of 2022. Net cash used in investing activities for the nine months ended September 30, 2023 was approximately $310,000 vs. $412,000 in the comparable period of 2022.

Anticipate more collaborations and partnerships with some of the world's leading drug developers and research and academic institutions in the coming quarters.

Forward-looking statements are subject to substantial risks, uncertainties and assumptions. Actual future performance may materially differ from contemplated forward-looking statements due to various factors, including those discussed in Risk Factors in SEC filings. The company disclaims intent or obligation to update forward-looking statements.