Company: BLLN
Filing Date: 2025-06-20
Form Type: DRS
Source: 0000950123-25-006095
Chunk: 8

Company: BillionToOne, Inc.
Filing Date: 2025-06-20
Form: DRS
Chunk 8
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-term horizon.

Our superior efficiency.We believe our capital efficiency and emerging profitability set us apart from other molecular diagnostics companies especially at our scale. Since inception we have produced a track record of cost efficiency, demonstrated by
limiting our accumulated deficit of $282.2 million as of December 31, 2024, which is a small fraction of the losses incurred by some of our competitors. The important factors resulting in this efficiency are (i) our gross margins of
% for the three months ended June 30, 2025, which has increased percentage points year-over-year, (ii) our high sales efficiency driven by differentiated products, with our annualized revenue run-rate per sales representative at over $ million for the three months ended June 30, 2025, and (iii) disciplined operational practices supplemented by automation and AI. Going
forward, our financial discipline will continue to be integral to our innovation efforts. By prioritizing efficiency, we have been able to consistently invest in R&D and commercial expansion while reducing losses over time and achieving
profitability. In doing so, we believe we have established a differentiated financial profile that positions us for sustainable value creation.

Background on cfDNA and the limitations of traditional NGS technologies

cfDNA represents one of the most promising biomarkers in modern precision medicine. cfDNA is
continuously shed from all tissues into the bloodstream and has a short half-life of approximately one to two hours. This transient nature gives cfDNA a unique capability to provide a real-time snapshot of cellular turnover and can be used to
diagnose and monitor disease, as both genetic and epigenetic properties of cfDNA directly reflect the originating tissue.

Despite its potential, the detection of
cfDNA is fundamentally challenging due to its limited quantity in blood and short half-life. Certain conditions that stem from large scale genetic changes or generate abundant quantities of cfDNA in the bloodstream can be identified by previous
testing approaches. However, other serious conditions may have lower DNA shedding rates which can result in very few relevant DNA fragments in the blood. These conditions are nearly undetectable with previous cfDNA detection techniques. For example,
even in a late-stage cancer patient, there may only be one mutated cell-free tumor DNA molecule found in one tube of blood.

While traditional NGS has revolutionized
genomic medicine over the past decade, it faces inherent limitations when applied to the analysis of cfDNA. Conventional NGS technologies are primarily limited to presence or absence detection. For example, within germline testing, which includes