Sung Ji Nam: Sounds great. Thank you so much.
Erik Holmlin: Thank you, Sung Ji.
Operator: Thank you. And for our next question, it comes from the line of Jeffrey Cohen from Ladenburg Thalmann. Jeffrey, your line is open. Please ask your question.
Jeffrey Cohen: Hi, Erik and Gülsen. How are you?
Erik Holmlin: We’re well, Jeffrey.
Jeffrey Cohen: So, a few questions from our end. So, firstly, could you maybe talk about the newer systems that have been placed for Saphyr? Could you tell us what you’re seeing as far as sales, or leases, or pre-use arrangements as far as any flexibility that you have on the sales front and is a right purchase becoming more or less of an obstacle from more recent quarters?
Erik Holmlin: So, the go-to-market model for the early access systems mirrors in many respects what we do for the Saphyr system. And so, there’s a flexible rental program and the purchase model. And the pricing on the purchase is higher. But what we’re seeing in terms of the distribution, and again, it’s early, so the statistical significance of the observations is probably not really well established. But what we’re seeing in terms of the distribution is that it’s comparable to what we see for the Saphyr system. So some rental and some purchase.
Jeffrey Cohen: Okay. Got it. And then, Gülsen, can you perhaps walk us through some of the commentary as far as the $33 million in savings expected for ’24? I mean, I guess how we’re looking at it, you’re talking about a 20% reduction off of SG&A and R&D. Could you outline perhaps for us where you’re going to see some of those savings and perhaps which line item may see a more pronounced reduction than the other? Thank you.
Gülsen Kama: Thank you, Jeffrey. So, in terms of the $33 million savings, it is actually — some of it is coming from the cost of goods sold area, relatively small, proportionally small. And as you said, most of it is in R&D and SG&A. And a big part of the savings, it was actually announced in our pre-release, we talked about the headcount reductions. So you can — and combined with the ones that we did back in May, a big portion of the savings will come from that area. Now, we have looked through every line item on the P&L to see where else we can achieve savings. So, it varies, but I don’t think there’s anything that was untouched. So, hard for me to give you the exact guidance, but certainly the majority is from headcount reduction.
Jeffrey Cohen: Okay. Got it. And then lastly for us, could you give us a sense of pro forma shares and cash, please? I see the Q just hit as well.
Erik Holmlin: Yeah, I think it’s best if you refer to the cover of the Q. And I think we described the cash balance as of 9/30, which was $63.6 million.
Jeffrey Cohen: Perfect. Okay, thanks for taking our questions.
Erik Holmlin: Thank you, Jeffrey.
Operator: [Operator Instructions] And for your next question, it comes from the line of Frank Brisebois from Oppenheimer. Your line is open. Please ask your question.
Unidentified Analyst: Hi, this is Dan on for Frank. Thanks for taking my question. Just a quick one regarding Stratys. I know you mentioned that it’s too early to talk about feedback, but just in terms of the early access program, is currently all 10 systems out in the field? And also, are all 10 of those users currently, were they already Saphyr users, or are they also users who are not?
Erik Holmlin: So — hi, Dan. What I can say is that all 10 are not out in the field, and that’s not a demand issue. It’s just based on our production timeline. So, when we produce them, they go out. With regard to the sort of composition of users, what we see now, and this is actually really important, is that the majority of folks who are coming on board to adopt Stratys are new customers. And I think that that’s a little bit of a unique component in this kind of a product cycle within the industry, and it’s good. We introduced — we developed the Stratys to address a segment of the market that was excited about optical genome mapping and the value that it brings to them, but unable to really implement it because of the throughput limitations that the current Saphyr has.
