Investor Presentation Second Quarter Fiscal 2022 Cautionary Notices This presentation contains statements that constitute forward-looking statements. All statements other than statements of historical facts contained in this presentation, including statements regarding our future results of operations and financial position, business strategy, products and technology, as well as plans and objectives of management for future operations, are forward-looking statements. Forwardlooking statements are based on o ...

SOPHiA GENETICS SA (NASDAQ:SOPH) Q2 2022 Results Conference Call August 9, 2022 8:30 AM ET Company Participants Jennifer Pottage - Head, IR Dr. Jurgi Camblong - Co-Founder and CEO Ross Muken - CFO Conference Call Participants Julia Qin - JP Morgan Vidyun Bais - BTIG Kyle Boucher - Cowen Operator Good day, and welcome to the SOPHiA GENETICS Second Fiscal Quarter 2022 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Jennifer Pottage, Head of Investor Relations. ...

Exhibit 99.1 Index to Consolidated Financial Statements Table of Contents | | Unaudited Interim Condensed Consolidated Financial Statements | F-2 | | --- | --- | --- | | – | Unaudited Interim Condensed Consolidated Statements of Loss | F-3 | | – | Unaudited Interim Condensed Consolidated Statements of Comprehensive Loss | F-4 | | – | Unaudited Interim Condensed Consolidated Balance Sheets | F-5 | | – | Unaudited Interim Condensed Consolidated Statements of Changes in Equity | F-6 | | – | Unaudited Interim C ...

SOPHiA GENETICS SA (NASDAQ:SOPH) Q1 2022 Earnings Conference Call May 10, 2022 8:30 AM ET Company Participants Jennifer Pottage - Head of IR Jurgi Camblong - Co-Founder, CEO and Director Ross Muken - Senior VP and CFO Conference Call Participants Dan Brennan - Cowen Tejas Savant - Morgan Stanley Julia Chen - JPMorgan Operator Thank you for standing by, and welcome to the SOPHiA GENETICS First Quarter Fiscal 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the sp ...

Investor Presentation First Quarter Fiscal 2022 Cautionary Notices This presentation contains statements that constitute forward-looking statements. All statements other than statements of historical facts contained in this presentation, including statements regarding our future results of operations and financial position, business strategy, products and technology, as well as plans and objectives of management for future operations, are forward-looking statements. Forwardlooking statements are based on ou ...

SOPHiA GENETICS SA (NASDAQ:SOPH) Q4 2021 Earnings Conference Call March 15, 2022 8:30 AM ET Company Participants Jennifer Pottage - Head of IR Jurgi Camblong - Founder and CEO Ross Muken - CFO Peter Casasanto - Chief BioPharma Officer Conference Call Participants Tejas Savant - Morgan Stanley Mark Massaro - BTIG Daniel Brennan - Cowen and Company Unidentified Analyst - J.P. Morgan Operator Ladies and gentlemen, thank you for standing by and welcome to the SOPHiA GENETICS Fourth Quarter 2021 Earnings Confere ...

Part I [Item 3. Key Information](index=6&type=section&id=Item%203.%20Key%20Information) This section details SOPHiA GENETICS' significant risks, including platform expansion, competition, data breaches, and internal financial control weaknesses [Risk Factors](index=6&type=section&id=D.%20Risk%20Factors) The company faces substantial operational risks, including platform expansion, competition, cybersecurity, regulatory hurdles, and financial instability - The company identified **material weaknesses** in internal control over financial reporting, including control environment, accounting policies, and IT general controls, with remediation efforts underway[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) - A 2020 whistleblower complaint alleged **improper revenue recognition of $2.0 million**, leading to a reversal of these revenues after an independent review[121](index=121&type=chunk) - Risks include **RUO product labeling** in the U.S. and potential **increased FDA regulation of LDTs**, which could raise costs and reduce demand[127](index=127&type=chunk)[130](index=130&type=chunk) - Compliance with complex international data privacy laws like **GDPR and HIPAA** is critical, as non-compliance could lead to significant fines and reputational damage[97](index=97&type=chunk)[148](index=148&type=chunk)[150](index=150&type=chunk) [Item 4. Information on the Company](index=61&type=section&id=Item%204.%20Information%20on%20the%20Company) This section provides a comprehensive overview of SOPHiA GENETICS, covering its history, business model, platform, market, and competitive landscape [History and Development of the Company](index=61&type=section&id=A.%20History%20and%20Development%20of%20the%20Company) SOPHiA GENETICS SA was incorporated in Switzerland in 2011 and completed its IPO on Nasdaq in July 2021 - The company was incorporated as a Swiss stock corporation on **March 18, 2011**[265](index=265&type=chunk) - In **July 2021**, the company completed its **IPO on the Nasdaq Global Select Market** under the ticker **"SOPH"**[267](index=267&type=chunk) [Business Overview](index=61&type=section&id=B.%20Business%20Overview) SOPHiA GENETICS offers a cloud-based platform for multimodal data analysis, serving over **790 customers** in a **$35 billion** estimated market - The company's mission is to **democratize data-driven medicine** by leveraging AI to generate actionable insights from healthcare data[268](index=268&type=chunk)[270](index=270&type=chunk) - As of December 31, 2021, the SOPHiA platform served **over 790 customers**, analyzed **more than 910,000 genomic profiles**, and was cited in **over 330 peer-reviewed publications**[273](index=273&type=chunk) Total Addressable Market (2021) | Market | Estimated TAM (in USD) | | :--- | :--- | | **Total** | **$35 billion** | | Clinical Applications | $21 billion | | Biopharma Applications | $14 billion | Growth in Genomic Profiles Analyzed | Year | Total Profiles Analyzed | | :--- | :--- | | 2016 | ~80,000 | | 2021 | ~910,000 | - The growth strategy focuses on **platform innovation**, **global customer acquisition** (especially U.S.), **increased utilization**, **biopharma expansion**, and **industry collaborations**[379](index=379&type=chunk) [Organizational Structure](index=99&type=section&id=C.%20Organizational%20Structure) SOPHiA GENETICS SA operates through six wholly owned subsidiaries across France, UK, USA, Brazil, Australia, and Italy List of Wholly Owned Subsidiaries | Name of Subsidiary | Jurisdiction of incorporation | | :--- | :--- | | SOPHiA GENETICS S.A.S. | France | | SOPHiA GENETICS LTD | UK | | SOPHiA GENETICS, Inc. | Delaware (USA) | | SOPHiA GENETICS Intermediação de Negócios EIRELI | Brazil | | SOPHiA GENETICS PTY LTD | Australia | | SOPHiA GENETICS S.R.L. | Italy | [Property, Plants and Equipment](index=100&type=section&id=D.%20Property%2C%20Plants%20and%20Equipment) The company leases all facilities, with principal locations in Switzerland, France, and Boston, Massachusetts Primary Leased Facilities (as of Dec 31, 2021) | Location | Primary Function | Approximate Size | | :--- | :--- | :--- | | Saint-Sulpice, Switzerland | Office | 19,000 ft² | | Rolle, Switzerland | Office & Laboratory | 11,800 ft² | | Bidart, France | Office | 3,450 ft² | | Pessac, France | Office | 3,450 ft² | | Boston, MA, USA | Office | 4,880 ft² | [Operating and Financial Review and Prospects](index=100&type=section&id=Item%205.%20Operating%20and%20Financial%20Review%20and%20Prospects) This section analyzes the company's financial condition and operations, detailing **42% revenue growth** to **$40.5 million** and an increased **net loss of $73.7 million** [Operating Results](index=100&type=section&id=A.%20Operating%20Results) In 2021, revenue grew **42% to $40.5 million**, gross profit reached **$25.2 million** (62% margin), but rising expenses led to a **net loss of $73.7 million** Consolidated Statement of Loss Summary (in USD thousands) | Metric | 2021 | 2020 | | :--- | :--- | :--- | | **Revenue** | **$40,450** | **$28,400** | | Cost of revenue | $(15,229) | $(10,709) | | **Gross profit** | **$25,221** | **$17,691** | | *Gross margin* | *62%* | *62%* | | Operating loss | $(71,489) | $(37,387) | | **Loss for the year** | **$(73,675)** | **$(39,339)** | | Basic and diluted loss per share | $(1.33) | $(0.93) | Key Operating Performance Indicators | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Platform analysis volume | 243,394 | 161,049 | | Total recurring platform customers | 382 | 314 | | Average revenue per platform customer | $92,028 | $70,004 | | LTV/CAC Ratio | 7.7x | 3.2x | | Net Dollar Retention (NDR) | 142% | 110% | - Operating expense increases were driven by **$7.8 million in R&D**, **$9.6 million in S&M** employee costs, and higher G&A due to organizational scale-up and public company expenses[549](index=549&type=chunk)[550](index=550&type=chunk)[551](index=551&type=chunk) [Liquidity and Capital Resources](index=111&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) As of December 31, 2021, the company held **$193.0 million in cash** and **$72.4 million in term deposits**, primarily funded by **$243.4 million IPO proceeds** - Principal liquidity sources as of December 31, 2021, included **$193.0 million in cash and cash equivalents** and **$72.4 million in term deposits**[558](index=558&type=chunk) - In 2021, the company raised **$243.4 million gross proceeds from its IPO** and **$20.0 million from a private placement** with a GE Healthcare affiliate[559](index=559&type=chunk) Consolidated Statement of Cash Flows Summary (in USD thousands) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | $(57,939) | $(31,730) | | Net cash used in investing activities | $(56,934) | $(24,323) | | Net cash provided by financing activities | $237,773 | $107,045 | [Critical Accounting Estimates](index=114&type=section&id=E.%20Critical%20Accounting%20Estimates) This section outlines critical accounting estimates, including revenue recognition, software development capitalization, share-based compensation, and goodwill impairment testing - For multi-element revenue recognition, the company uses the **residual approach** to determine the **stand-alone selling price (SSP)** of analyses due to variable selling prices[575](index=575&type=chunk)[590](index=590&type=chunk) - Internal software development costs are **capitalized upon technical and financial feasibility** and amortized straight-line over **five years**[592](index=592&type=chunk) - Share option fair value is measured using an **adjusted Black-Scholes model**, with post-IPO valuation based on public market close price[595](index=595&type=chunk)[596](index=596&type=chunk)[598](index=598&type=chunk) - Goodwill is tested annually for impairment by comparing equity value to net assets, with **no impairment recorded for 2021**[602](index=602&type=chunk) [Directors, Senior Management and Employees](index=119&type=section&id=Item%206.%20Directors%2C%20Senior%20Management%20and%20Employees) This section details the company's leadership, including executive officers and board members, their **$3.5 million cash** and **$18.4 million stock option** compensation, and **518 employees** - As of December 31, 2021, the company had **518 employees across 29 countries**, with **44% engaged in R&D**[656](index=656&type=chunk) 2021 Compensation for Directors & Executive Officers | Compensation Type | Aggregate Amount (in USD) | | :--- | :--- | | Paid or Accrued (Cash, benefits) | $3.5 million | | Fair Value of Stock Options Granted | $18.4 million | | Pension/Retirement Benefits | $0.2 million | - The **seven-member Board of Directors** includes **six independent members** and operates with Audit, Compensation, and Nomination and Corporate Governance committees[642](index=642&type=chunk)[643](index=643&type=chunk)[646](index=646&type=chunk) [Major Shareholders and Related Party Transactions](index=128&type=section&id=Item%207.%20Major%20Shareholders%20and%20Related%20Party%20Transactions) This section details the company's ownership structure, with major shareholders including **Alychlo NV (10.95%)** and **Generation IM (10.63%)**, and outlines related party indemnification agreements Major Shareholders (as of Feb 15, 2022) | Shareholder | Percentage Ownership | | :--- | :--- | | Alychlo NV | 10.95% | | Generation IM Sustainable Solutions Fund III, L.P. | 10.63% | | Balderton Capital VI, S.L.P. | 5.26% | | All executive officers and directors as a group | 4.88% | - The company has **indemnification agreements** with officers and directors and a **related person transaction policy** requiring audit committee or board approval[667](index=667&type=chunk)[668](index=668&type=chunk) [Financial Information](index=131&type=section&id=Item%208.%20Financial%20Information) This section confirms IFRS-compliant consolidated financial statements, notes no material legal proceedings, and states the company has never paid and does not anticipate paying cash dividends - The company has **never paid cash dividends** and does not anticipate doing so, intending to reinvest all available funds into business development[671](index=671&type=chunk) - As of the report date, the company is **not party to any material legal proceedings** that would adversely affect its business[670](index=670&type=chunk) [Item 10. Additional Information](index=132&type=section&id=Item%2010.%20Additional%20Information) This section provides supplementary details on corporate governance, material contracts with partners like GE Healthcare, and Swiss and U.S. tax implications for shareholders - The company has material collaboration and supply agreements with **GE Healthcare**, **IDT**, **Qiagen**, and **Twist** for digital oncology, radiogenomic analysis, and DNA enrichment kits[686](index=686&type=chunk)[693](index=693&type=chunk)[698](index=698&type=chunk) - Dividends from profit or reserves are subject to a **35% Swiss federal withholding tax**, with potential partial refunds for U.S. holders under the U.S.-Switzerland tax treaty[714](index=714&type=chunk)[717](index=717&type=chunk) - The company believes it was **not a PFIC for 2021**, but future status is uncertain due to cash holdings, which could have adverse U.S. tax consequences for investors[258](index=258&type=chunk)[743](index=743&type=chunk) [Item 11. Quantitative and Qualitative Disclosures About Market Risk](index=143&type=section&id=Item%2011.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are **foreign exchange risk** (USD/CHF, EUR/CHF) and **credit risk**, with its largest distributor accounting for **18% of trade receivables** Foreign Exchange Rate Sensitivity (Impact on Loss Before Tax) | Exchange Rate Change | 2021 (in USD thousands) | | :--- | :--- | | 10% Increase in USD/CHF | $19,499 | | 10% Decrease in USD/CHF | $(19,499) | | 10% Increase in EUR/CHF | $648 | | 10% Decrease in EUR/CHF | $(648) | - The company is exposed to **credit risk**, with its largest distributor representing **18% of trade and other receivables** in 2021[764](index=764&type=chunk) - **Interest rate risk is minimal** due to no outstanding debt and short-term cash deposits, and inflation has not materially affected operations[759](index=759&type=chunk)[765](index=765&type=chunk) Part II [Material Modifications to the Rights of Security Holders and Use of Proceeds](index=145&type=section&id=Item%2014.%20Material%20Modifications%20to%20the%20Rights%20of%20Security%20Holders%20and%20Use%20of%20Proceeds) In July 2021, the company completed its IPO, raising **$220.2 million net**, and a concurrent private placement to GE Healthcare for **$19.6 million net** 2021 Capital Raising Activities | Event | Shares Sold | Price per Share | Net Proceeds | | :--- | :--- | :--- | :--- | | Initial Public Offering (IPO) | 13,519,493 | $18.00 | $220.2 million | | Private Placement (GE Healthcare) | 1,111,111 | $18.00 | $19.6 million | [Controls and Procedures](index=145&type=section&id=Item%2015.%20Controls%20and%20Procedures) Management concluded that disclosure controls were **not effective** as of December 31, 2021, due to **material weaknesses** in internal control over financial reporting, with remediation underway - The CEO and CFO concluded that **disclosure controls and procedures were not effective** due to **material weaknesses in internal controls** as of the reporting period end[772](index=772&type=chunk) - Three material weaknesses identified include **insufficient IFRS accounting professionals**, **lack of formal accounting policies**, and **ineffective IT general controls** related to user access and change management[775](index=775&type=chunk) - Remediation efforts involve **hiring key accounting personnel**, retaining consultants, and **improving documentation and formalization of policies and IT controls**[776](index=776&type=chunk)[777](index=777&type=chunk) [Other Information](index=147&type=section&id=Item%2016.%20Other%20Information) This section covers governance, including **audit committee financial experts**, the Code of Ethics, **$2.31 million in 2021 accountant fees**, and reliance on Swiss governance as a foreign private issuer Principal Accountant Fees (2021) | Service Category | Fees (USD) | | :--- | :--- | | Audit fees | $1,856,044 | | Audit-related fees | $9,834 | | Tax services | $34,273 | | All other fees | $409,389 | | **Total fees** | **$2,309,540** | - As a **foreign private issuer**, the company relies on **Swiss governance practices**, exempting it from certain Nasdaq requirements like majority-independent boards[791](index=791&type=chunk) - The Board of Directors determined that **Didier Hirsch and Milton Silva-Craig** are **"audit committee financial experts"** as defined by the SEC[782](index=782&type=chunk) Part III [Financial Statements](index=149&type=section&id=Item%2018.%20Financial%20Statements) This section presents the audited consolidated financial statements for SOPHiA GENETICS SA for 2019-2021, prepared under IFRS, with an **unqualified opinion** Consolidated Balance Sheet Summary (in USD thousands) | Account | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$320,173** | **$132,115** | | Cash and cash equivalents | $192,962 | $74,625 | | Total current assets | $282,855 | $109,694 | | Total non-current assets | $37,318 | $22,421 | | **Total Liabilities** | **$44,773** | **$31,605** | | Total current liabilities | $28,603 | $21,587 | | Total non-current liabilities | $16,170 | $10,018 | | **Total Equity** | **$275,400** | **$100,510** | - PricewaterhouseCoopers SA issued an **unqualified opinion** on the consolidated financial statements, confirming fair presentation of financial position and results in conformity with IFRS[804](index=804&type=chunk)

Exhibit 99.3 SOPHiA GENETICS SA Saint-Sulpice Report of the statutory auditor to the General Meeting on the consolidated financial statements 2021 Report of the statutory auditor to the General Meeting of SOPHiA GENETICS SA Saint-Sulpice Report on the audit of the consolidated financial statements Opinion We have audited the consolidated financial statements of SOPHiA GENETICS SA and its subsidiaries (the Group), which comprise the consolidated statements of loss and the consolidated statements of comprehen ...

[Report of the Statutory Auditor](index=1&type=section&id=Report%20of%20the%20statutory%20auditor) The statutory auditor's report provides an unqualified opinion on the consolidated financial statements, confirming their fair presentation in accordance with IFRS and Swiss law [Opinion and Basis for Opinion](index=2&type=section&id=Opinion%20and%20Basis%20for%20Opinion) PricewaterhouseCoopers SA issued an opinion confirming the 2021 consolidated financial statements provide a true and fair view of the company's financial position and performance - The auditor's opinion confirms that the 2021 consolidated financial statements are a true and fair representation of the Group's financial position and performance[3](index=3&type=chunk) - The audit was performed in accordance with Swiss law, International Standards on Auditing (ISAs), and Swiss Auditing Standards[4](index=4&type=chunk) [Audit Approach](index=2&type=section&id=Audit%20Approach) The audit scope was determined by a group materiality of **$3.68 million** and focused on revenue recognition from the SOPHiA platform, particularly the estimation of stand-alone selling prices Audit Materiality | Metric | Value (USD thousands) | | :--- | :--- | | Overall Group materiality | $3,680 | | Benchmark applied | Loss before tax | | Rationale | It is the benchmark against which the performance of the Group is most commonly measured | - The audit scope addressed over **90%** of the Group's total revenue, with full scope audits on Swiss and French entities and specified procedures on the U.S. entity[7](index=7&type=chunk) - The primary key audit matter was "Revenue from SOPHiA platform," focusing on the Group's use of the residual approach to determine the stand-alone selling price of analyses, which relies heavily on management estimates[16](index=16&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk) [Responsibilities and Other Information](index=4&type=section&id=Responsibilities%20and%20Other%20Information) This section delineates the Board of Directors' responsibility for financial statement preparation and internal controls, and the auditor's role in providing reasonable assurance - The Board of Directors is responsible for the preparation of the consolidated financial statements in accordance with IFRS and Swiss law, including internal controls and the going concern assessment[25](index=25&type=chunk)[27](index=27&type=chunk) - The auditor's objectives are to obtain reasonable assurance about the absence of material misstatement in the financial statements and to issue an opinion[28](index=28&type=chunk) - The auditor confirmed the existence of an internal control system designed for the preparation of consolidated financial statements as instructed by the Board of Directors[33](index=33&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's financial performance, position, and cash flows for the period ended December 31, 2021, highlighting key changes and trends [Consolidated Statements of Loss](index=7&type=section&id=Consolidated%20Statements%20of%20Loss) In 2021, revenue increased to **$40.5 million**, but the net loss widened significantly to **$73.7 million** due to substantial increases in operating expenses Consolidated Statements of Loss (Year ended December 31, in USD thousands) | Metric | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Revenue | $40,450 | $28,400 | $25,362 | | Gross profit | $25,221 | $17,691 | $17,830 | | Operating loss | $(71,489) | $(37,387) | $(32,287) | | Loss for the year | $(73,675) | $(39,339) | $(33,791) | | Basic and diluted loss per share | $(1.33) | $(0.93) | $(0.90) | - Revenue grew **42.4%** year-over-year in 2021, while the loss for the year increased by **87.3%** year-over-year[37](index=37&type=chunk) - The increase in operating loss was driven by significant growth in R&D costs (up **43.0%** YoY), Selling and marketing costs (up **64.8%** YoY), and General and administrative costs (up **118.9%** YoY)[37](index=37&type=chunk) [Consolidated Statements of Comprehensive Loss](index=8&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Loss) The total comprehensive loss for 2021 was **$78.0 million**, primarily due to the net loss and negative currency translation differences Consolidated Statements of Comprehensive Loss (Year ended December 31, in USD thousands) | Metric | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Loss for the year | $(73,675) | $(39,339) | $(33,791) | | Currency translation differences | $(4,736) | $7,338 | $272 | | Remeasurement of defined benefit plans | $461 | $184 | $(1,523) | | **Total comprehensive loss for the year** | **$(77,950)** | **$(31,817)** | **$(35,042)** | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$320.2 million** in 2021, driven by IPO proceeds, leading to a substantial increase in total equity to **$275.4 million** Consolidated Balance Sheet Highlights (As of December 31, in USD thousands) | Metric | 2021 | 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $192,962 | $74,625 | | Total current assets | $282,855 | $109,694 | | Total assets | $320,173 | $132,115 | | **Liabilities and Equity** | | | | Total current liabilities | $28,603 | $21,587 | | Total liabilities | $44,773 | $31,605 | | Total equity | $275,400 | $100,510 | | Total liabilities and equity | $320,173 | $132,115 | - The significant increase in cash and total equity was primarily driven by the net proceeds from the company's Initial Public Offering (IPO) in 2021[43](index=43&type=chunk) [Consolidated Statement of Changes in Equity](index=10&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity grew to **$275.4 million** in 2021, mainly from **$239.8 million** in net proceeds from capital raises, offset by the **$78.0 million** comprehensive loss Changes in Equity for 2021 (in USD thousands) | Description | Amount | | :--- | :--- | | Equity at Dec 31, 2020 | $100,510 | | Total comprehensive loss | $(77,950) | | Share-based compensation | $8,514 | | Share options exercised | $4,527 | | Sale of shares in IPO, net | $211,663 | | Sale of shares in private placement, net | $19,648 | | Sale of shares in greenshoe offering, net | $8,488 | | **Equity at Dec 31, 2021** | **$275,400** | [Consolidated Statement of Cash Flows](index=11&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) Net cash used in operations increased to **$57.9 million** in 2021, but substantial financing activities, primarily from the IPO, resulted in a year-end cash balance of **$193.0 million** Consolidated Statement of Cash Flows Highlights (Year ended December 31, in USD thousands) | Metric | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Net cash flows used in operating activities | $(57,939) | $(31,730) | $(31,680) | | Net cash flow used in investing activities | $(56,934) | $(24,323) | $(3,033) | | Net cash flow provided from financing activities | $237,773 | $107,045 | $(1,023) | | **Increase in cash and cash equivalents** | **$122,900** | **$50,992** | **$(35,736)** | | Cash and cash equivalents at end of the year | $192,962 | $74,625 | $18,069 | - Financing activities in 2021 were dominated by proceeds from the IPO (**$211.7 million**), private placement (**$19.6 million**), and greenshoe offering (**$8.5 million**)[48](index=48&type=chunk) [Notes to the Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on the company's accounting policies, financial instrument risks, capital management, and specific balance sheet and income statement items [Note 1. Company information and operations](index=12&type=section&id=1.%20Company%20information%20and%20operations) SOPHiA GENETICS, a Swiss healthcare technology company, completed its Nasdaq IPO in July 2021, raising **$211.7 million** net, alongside a **$19.6 million** private placement - The company is a healthcare technology firm with a cloud-based SaaS platform, SOPHiA DDM, for analyzing multimodal health data[50](index=50&type=chunk) - Completed its IPO on the Nasdaq in July 2021, raising aggregate net proceeds of **$211.7 million**[54](index=54&type=chunk) - A one-to-twenty share split was effected on June 30, 2021, and all share and per-share amounts have been retroactively adjusted[53](index=53&type=chunk) [Note 2. Significant accounting policies](index=13&type=section&id=2.%20Significant%20accounting%20policies) The financial statements are prepared under IFRS, using USD as the reporting currency and CHF as the functional currency, requiring significant management estimates in key areas - The financial statements are prepared in accordance with International Financial Reporting Standards (IFRS)[58](index=58&type=chunk) - The company's reporting currency is the **U.S. dollar (USD)**, while its functional currency is the **Swiss franc (CHF)**[61](index=61&type=chunk)[63](index=63&type=chunk) - Significant estimates and judgments are used in revenue recognition, capitalized software development costs, share-based compensation, and other areas[65](index=65&type=chunk) [Note 3. Segment reporting](index=16&type=section&id=3.%20Segment%20reporting) The company operates as a single segment, with revenue geographically diversified across France, Italy, the United States, and Spain, while most non-current assets are in Switzerland - The company operates in a single operating segment[89](index=89&type=chunk) Revenue by Customer Location (in USD thousands) | Country | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | France | $7,405 | $6,060 | $5,874 | | Italy | $6,124 | $2,994 | $3,150 | | United States | $3,944 | $2,636 | $1,989 | | Spain | $3,765 | $2,356 | $2,105 | | Other | $19,212 | $14,354 | $12,240 | | **Total revenue** | **$40,450** | **$28,400** | **$25,362** | - As of December 31, 2021, the majority of non-current non-financial assets (**$29.0 million** out of **$35.9 million**) were located in Switzerland[90](index=90&type=chunk) [Note 4. Revenue](index=17&type=section&id=4.%20Revenue) Revenue, primarily from the SOPHiA platform, grew to **$39.5 million** in 2021, with significant judgment required for bundled arrangements using the residual approach for analysis SSP Revenue Streams (in USD thousands) | Revenue Stream | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | SOPHiA platform | $39,465 | $27,221 | $23,710 | | Workflow equipment and services | $985 | $1,179 | $1,652 | | **Total revenue** | **$40,450** | **$28,400** | **$25,362** | - Significant judgment is required to determine the stand-alone selling price (SSP) for each performance obligation, with the company using the residual approach for analyses in bundled arrangements as their SSP is not discernible from past transactions[91](index=91&type=chunk)[108](index=108&type=chunk) - Deferred contract revenue brought forward as of January 1, 2021, was **$2.9 million**, of which **$3.0 million** was recognized as revenue during 2021[114](index=114&type=chunk) [Note 6. Operating expense](index=20&type=section&id=6.%20Operating%20expense) Total operating expenses significantly increased in 2021, driven by higher employee benefit expenses (**$53.8 million**) and share-based compensation (**$8.5 million**), with General & Administrative costs being the highest Operating Expenses by Nature (in USD thousands) | Expense Category | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Employee benefit expenses | $(53,802) | $(36,732) | $(27,237) | | Share-based compensation | $(8,514) | $(1,359) | $(717) | | Professional fees | $(11,318) | $(5,371) | $(5,357) | | Raw materials and consumables used | $(9,650) | $(3,843) | $(3,180) | | **Total** | **$(112,047)** | **$(65,694)** | **$(57,633)** | Employee Costs by Function (in USD thousands) | Function | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Research and development costs | $23,899 | $16,109 | $10,622 | | Selling and marketing costs | $21,659 | $12,085 | $10,579 | | General and administrative costs | $25,131 | $16,880 | $10,244 | | **Total** | **$70,689** | **$45,074** | **$31,445** | [Note 8. Finance expense, net](index=23&type=section&id=8.%20Finance%20expense,%20net) Net finance expense decreased to **$2.0 million** in 2021, mainly due to a reduction in foreign exchange losses, despite a **$1.4 million** loss on derivative revaluation Finance Expense, Net (in USD thousands) | Category | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Total interest expense | $(658) | $(840) | $(976) | | Derivative fair value (losses) | $(1,444) | $(384) | $(98) | | Foreign exchange gains (losses), net | $64 | $(2,710) | $(354) | | **Total finance income (expense), net** | **$(2,018)** | **$(3,838)** | **$(1,342)** | - The derivative fair value losses relate to the revaluation of a success fee associated with a loan, which was settled in 2021[132](index=132&type=chunk) [Note 9. Income tax](index=23&type=section&id=9.%20Income%20tax) The company reported an income tax expense of **$168 thousand** in 2021, holding **$29.3 million** in unrecognized deferred tax assets, primarily from **$202.4 million** in NOL carryforwards - Total income tax expense was **$168 thousand** in 2021, a shift from a **$1.9 million** benefit in 2020[142](index=142&type=chunk) - As of December 31, 2021, the company had unrecognized deferred tax assets with a tax effect of **$29.3 million**, primarily from **$202.4 million** in gross net operating loss (NOL) carryforwards[145](index=145&type=chunk) - The company determined it was not probable that all deferred tax assets will be realized in Switzerland but has recognized deferred tax assets in France, the UK, the US, and Brazil[146](index=146&type=chunk) [Note 17. Intangible Assets](index=31&type=section&id=17.%20Intangible%20Assets) Net intangible assets increased to **$15.7 million** in 2021, comprising goodwill, purchased software, and **$5.7 million** in capitalized internally developed software costs, with no impairment recorded Intangible Assets, Net Book Value (in USD thousands) | Category | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Goodwill | $8,298 | $8,598 | | Purchased software | $1,658 | $2,182 | | Capitalized internally developed software costs | $5,717 | $2,502 | | **Total intangible assets** | **$15,673** | **$13,282** | - The company capitalized **$3.9 million** of internally developed software costs in 2021, compared to **$2.4 million** in 2020[179](index=179&type=chunk)[181](index=181&type=chunk) - Goodwill was tested for impairment by comparing the company's market capitalization (**$900.4 million**) to its net assets (**$275.4 million**), and no impairment was recorded[183](index=183&type=chunk) [Note 18. Leases](index=34&type=section&id=18.%20Leases) Right-of-use assets and lease liabilities significantly increased to **$11.3 million** and **$13.1 million** respectively in 2021, driven by new office leases in Switzerland and Massachusetts - Entered into two significant new office leases in 2021: a **120-month** lease in Rolle, Switzerland, and a **40-month** lease in Boston, Massachusetts[191](index=191&type=chunk)[192](index=192&type=chunk)[194](index=194&type=chunk) Lease Balances (in USD thousands) | Balance Sheet Item | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Right-of-use assets | $11,292 | $3,767 | | Lease liabilities | $13,059 | $3,919 | [Note 22. Post-employment benefits](index=37&type=section&id=22.%20Post-employment%20benefits) The net pension liability for defined benefit plans decreased to **$4.5 million** in 2021, with key actuarial assumptions including a **0.30%** discount rate for the Swiss plan Defined Pension Plan Funded Status (in USD thousands) | Category | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Present value of defined benefit obligation | $(17,889) | $(15,938) | | Fair value of plan assets | $13,436 | $10,780 | | **Net pension liability** | **$(4,453)** | **$(5,158)** | - The company has a funded defined benefit plan in Switzerland and an unfunded plan in France, with the Swiss plan fully reinsured with Swiss Life[210](index=210&type=chunk)[211](index=211&type=chunk) - Key actuarial assumptions for the Swiss plan in 2021 included a discount rate of **0.30%** and an expected salary increase of **1.25%**[218](index=218&type=chunk)[219](index=219&type=chunk) [Note 23. Share-based compensation](index=42&type=section&id=23.%20Share-based%20compensation) Share-based compensation expense sharply increased to **$8.5 million** in 2021, driven by the new 2021 Employee Incentive Plan which granted **1.6 million** options and **290,407** RSUs - Share-based compensation expense recognized in the statement of loss was **$8.5 million** in 2021, a significant increase from **$1.4 million** in 2020[124](index=124&type=chunk)[253](index=253&type=chunk) - A new plan, the 2021 Employee Incentive Plan (2021 EIP), was launched in June 2021, under which options and Restricted Stock Units (RSUs) can be granted[242](index=242&type=chunk) - In 2021, the company granted **1.4 million** options under the 2019 ISOP and **1.6 million** options under the new 2021 EIP, additionally, **290,407** RSUs were granted under the 2021 EIP[248](index=248&type=chunk)[250](index=250&type=chunk)[256](index=256&type=chunk) [Note 24. Borrowings](index=47&type=section&id=24.%20Borrowings) The company had no outstanding borrowings as of December 31, 2021, having repaid all loans, including **$0.5 million** Swiss COVID and **$0.8 million** U.S. PPP loans - Total borrowings were reduced to **zero** as of December 31, 2021, down from **$3.3 million** at the end of 2020[258](index=258&type=chunk) - During 2020, the company obtained several COVID-19 relief loans, including a **$0.5 million** loan in Switzerland and a **$0.8 million** PPP loan in the U.S[261](index=261&type=chunk)[262](index=262&type=chunk) - The **$0.8 million** PPP loan was officially forgiven in February 2021[263](index=263&type=chunk) [Note 26. Initial Public Offerings](index=50&type=section&id=26.%20Initial%20Public%20Offerings) In July 2021, the company completed its Nasdaq IPO, raising **$211.7 million** net, supplemented by a **$19.6 million** private placement and **$8.5 million** from a greenshoe option - Completed its IPO on the Nasdaq on July 27, 2021, selling **13 million** shares at **$18.00** each, for net proceeds of **$211.7 million**[271](index=271&type=chunk) - A concurrent private placement of **1.1 million** shares to an affiliate of GE Healthcare raised net proceeds of **$19.6 million**[272](index=272&type=chunk) - The underwriters' greenshoe option was partially exercised, resulting in the sale of an additional **519,493** shares and raising **$8.5 million** in net proceeds[273](index=273&type=chunk) [Note 30. Financial instruments and risks](index=53&type=section&id=30.%20Financial%20instruments%20and%20risks) The company's financial assets totaled **$272.3 million** and liabilities **$35.8 million** in 2021, with significant exposure to foreign currency risk, particularly from USD/CHF exchange rate fluctuations Financial Instruments Summary (in USD thousands) | Category | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Total financial assets at amortized cost | $272,345 | $104,692 | | Total financial liabilities | $35,768 | $18,635 | - The company manages credit risk by dealing with investment-grade financial institutions, with the highest exposure to a single counterparty for cash and deposits being **$115.0 million** as of December 31, 2021[305](index=305&type=chunk)[306](index=306&type=chunk) - The company is exposed to significant foreign currency risk, where a **10%** increase or decrease in the USD/CHF exchange rate could impact loss before tax by approximately **$19.5 million**[312](index=312&type=chunk) [Note 31. Capital management](index=58&type=section&id=31.%20Capital%20management) The company's capital management aims to maximize shareholder value, supported by a strong liquidity position of **$193.0 million** cash and no outstanding debt as of December 31, 2021 - The company's main objective for capital management is to maximize shareholder value[317](index=317&type=chunk) - As of December 31, 2021, the company held **$193.0 million** in cash and cash equivalents and had no outstanding debt[318](index=318&type=chunk) - The Board believes the company has sufficient financial resources to operate for at least the next twelve months[319](index=319&type=chunk)

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