Good day, everyone, and welcome to iSpecimen's Full-Year 2023 Results Conference Call. At this time, all participants are in a listen-only mode. This conference call is being recorded. A replay of today's call will be available on the Investor Relations section of iSpecimen's website and will remain posted for the next 30 days. I will now hand the call over to Phil Carlson, Investor Relations for introductions and the reading of the safe harbor statement. If there are any questions for the management following the call, please e-mail iSpecimen@kcsa.com. Please go ahead.

Thank you, operator. Good morning, everyone, and welcome to iSpecimen's 2023 full-year results conference call. With us on today's call is Tracy Curley, Chief Executive Officer; and Eric Langlois, Chief Revenue Officer. Before we begin, I would like to remind you that today's call contains certain forward-looking statements from our management made within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities and Exchange Act of 1934 as amended concerning future events. Words such as may, should, projects, expects, intends, plans, believes, anticipates, hopes, estimates and variations of such words and similar expressions are intended to identify forward-looking statements. These statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company's Form 10-K for the year ended December 31, 2023, filed with the SEC. Copies of this document are available on the SEC's website at www.sec.gov. Actual results may differ materially from those expressed or implied by such forward-looking statements. The Company undertakes no obligation to update these statements or revisions or changes after the date of this call, except as required by law. Now it's my pleasure to introduce Tracy Curley, Chief Executive Officer. Tracy, please go ahead.

Good morning, and thank you for joining our call. Throughout 2023, we worked diligently to streamline our operations, reduce costs and right-size our business. By driving operational efficiencies throughout the company, we are increasingly able to realize the true value of the iSpecimen Marketplace quarter-over-quarter and even month-to-month. On today's call, I will discuss how these ongoing improvements have strengthened iSpecimen's position operationally, at what we believe to be the forefront of the biospecimen procurement market. I will then turn the call over to our Chief Revenue Officer, Eric Langlois, who will address the advancements we made in 2023 and the revenue enhancement initiative for sequencing, which has launched a higher margin revenue stream for iSpecimen. Finally, I will review our financial results for the 2023 year-end. At the beginning of Q4 2023 and in preparation for 2024, we completed a top to bottom review of the entire business, and concluded that focusing on specific initiatives capable of contributing to our topline growth, would provide a clear path to future success. To accomplish our goals, we launched several important marketing initiatives and realigned our sales efforts, several of which helped the company generate $1.7 million in revenue in December, the strongest sales month in our history. Also encouraging for the fourth quarter, we have sanctioned over $3.1 million in specimens. Unfortunately, Q4 revenue was negatively impacted by one-time customer credits of approximately $545,000, which reduced our GAAP basis revenue. This was due to our adoption of a more robust returns process. As we continue to streamline our operations and focus on our core business, we believe we are well positioned to capitalize on these operational achievements, scale our proven biospecimen procurement platform and achieve improved levels of growth throughout the remainder of 2024. The key driver of our record December…

Thank you, Tracy. First, the technology recap. We've been strategically focused on leveraging the technology advancements we've made in the first half of 2023 to unlock the full potential of our core business, which we are now seeing in our operational and financial results. These technology efforts consisted of updating search functionality, improving the user interface, increasing automation and enhanced matchmaking. The matchmaking module allows us to automatically match supply sites to a project based on the specific criteria, paired with the site's capabilities. This module in particular, when combined with our Next-Day Quote initiative, has had immense impact on the speed of our sales funnel, allowing our sales team to move opportunities to quote more rapidly, leading to higher win rates. Our ability to consistently innovate and improve the iSpecimen Marketplace will make our platform one of the premier solutions for connecting researchers and providers. In addition, these advancements have allowed us to effectively rollout our revenue-enhancing programs. Finally, we have also enhanced our curator remnant program, which has allowed us to update our supplier list as well as the test and analyze codes we offer in order to locate a greater array of specimen. Importantly, we began seeing improved results from our remnant line of business in Q4 2023 and that is carried over in the Q1 2024. Next, cancer sequencing. One of the most impactful and visionary revenue enhancement initiatives is our cancer sequencing program. In addition to having the potential to elevate iSpecimen's leadership position in our industry, it also offers the opportunity to significantly change the future of cancer research. Through our cancer sequencing program, we can provide cancer researchers with on-demand access to sequence biospecimens that enable them to advance their research. There is a tremendous value in having extensive access to mutation characterized,…

Thanks, Eric. Turning to our results. For the fiscal year ended December 31, 2023, revenue was approximately $9.93 million compared to approximately $10.4 million for the fiscal year ended December 31, 2022. The decrease in revenue for the 2023 fiscal year was primarily due to a decrease of 2,938 specimens or 11% in specimen count, from 27,503 specimens during the year ended December 31, 2022, to 24,565 specimens during the year ended December 31, 2023. The effect of the decrease in specimen count was partially offset by a change in the specimen mix, which resulted in the average selling price per specimen increasing by approximately $26 or 7%, from approximately $378 per specimen during the year ended December 31, 2022 to approximately $404 per specimen during the year ended December 31, 2023. To provide further color regarding the full-year results, during our Q1 2023 earnings call, we expressed our concern about what we perceived as a general economic uncertainty in our industry and an overall downturn in business. These concerns were realized, as our business was negatively impacted in Q2 2023. Despite the fact that we recognized record levels of opportunities in quote, we experienced lower-than-expected conversion of quotes to purchase orders in Q1 2023, which in turn left us with a much lower backlog of purchase orders at the beginning and early portion of Q2 2023 compared to prior quarters. As a result, we recorded approximately $1.63 million in revenue for Q2 2023. The average quarterly revenue recorded for the other three quarters of 2023 was approximately $2.77 million. Cost of revenue increased by approximately $63,000 or 1% from approximately $4.76 million for the year ended December 31, 2022, to approximately $4.82 million for the year ended December 31, 2023. Although there was an 11% decrease in our number…

Thank you. And ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.