BOSTON and ROLLE, Switzerland, March 05, 2024 (GLOBE NEWSWIRE) -- SOPHiA GENETICS (NASDAQ:SOPH), a cloud-native software company and a leader in data-driven medicine, today reported financial results for its fourth quarter and fiscal year ended December 31, 2023. Fourth Quarter 2023 Financial Highlights Revenue grew 27% year-over-year to $17.0 million; Constant currency revenue excluding COVID-related revenue also grew 27% year-over-yearGross margins were 70% on a reported basis and 73% on an adjusted basis ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F (Mark One) o REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (For the fiscal year ended December 31, 2023) OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR o SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIE ...

[Report of the Statutory Auditor](index=2&type=section&id=Report%20of%20the%20statutory%20auditor) [Report on the Audit of the Consolidated Financial Statements](index=3&type=section&id=Report%20on%20the%20audit%20of%20the%20consolidated%20financial%20statements) PricewaterhouseCoopers SA issued an unqualified opinion on SOPHiA GENETICS SA's consolidated financial statements for the year ended December 31, 2023, stating they present a true and fair view in accordance with IFRS and Swiss law. - The auditor issued an unqualified opinion, confirming the consolidated financial statements for the year ended December 31, 2023, give a true and fair view in accordance with IFRS Accounting Standards and Swiss law[4](index=4&type=chunk) - A key audit matter identified was the revenue from the SOPHiA DDM platform, specifically the determination of stand-alone selling price based on management estimates[9](index=9&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk) Overall Group Materiality | Metric | Value | | :------------------------------ | :------------------ | | Overall Group Materiality | USD 3,894 thousand | | Benchmark Applied | Loss before tax | [Consolidated Statements of Loss](index=10&type=section&id=Consolidated%20Statements%20of%20Loss) [Summary of Consolidated Statements of Loss](index=10&type=section&id=Consolidated%20Statements%20of%20Loss_Summary) SOPHiA GENETICS SA reported a reduced operating loss and net loss for the year ended December 31, 2023, compared to 2022, driven by significant revenue growth and improved interest income, despite increased operating expenses. - Revenue increased by **31.1%** year-over-year from **$47,560 thousand** in 2022 to **$62,371 thousand** in 2023[33](index=33&type=chunk) - Operating loss improved from **$(87,823) thousand** in 2022 to **$(74,826) thousand** in 2023, a **14.8%** reduction[33](index=33&type=chunk) Consolidated Statements of Loss (USD thousands) | Metric (USD thousands) | 2023 | 2022 | 2021 | | :--------------------- | :------- | :------- | :------- | | Revenue | 62,371 | 47,560 | 40,450 | | Cost of revenue | (19,458) | (16,306) | (15,229) | | Gross profit | 42,913 | 31,254 | 25,221 | | Operating loss | (74,826) | (87,823) | (71,489) | | Loss for the year | (78,981) | (87,449) | (73,675) | | Basic and diluted loss per share | (1.22) | (1.36) | (1.33) | [Consolidated Statements of Comprehensive Loss](index=11&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Loss) [Summary of Consolidated Statements of Comprehensive Loss](index=11&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Loss_Summary) The company reported a total comprehensive loss of $(64,156) thousand for 2023, a significant improvement from $(89,631) thousand in 2022, primarily due to positive currency translation differences. - Currency translation differences shifted from a loss of **$(4,336) thousand** in 2022 to a gain of **$15,037 thousand** in 2023, significantly impacting comprehensive loss[35](index=35&type=chunk) Consolidated Statements of Comprehensive Loss (USD thousands) | Metric (USD thousands) | 2023 | 2022 | 2021 | | :--------------------- | :------- | :------- | :------- | | Loss for the year | (78,981) | (87,449) | (73,675) | | Currency translation differences | 15,037 | (4,336) | (4,736) | | Remeasurement of defined benefit plans | (212) | 2,154 | 461 | | Total comprehensive loss for the year | (64,156) | (89,631) | (77,950) | [Consolidated Balance Sheets](index=12&type=section&id=Consolidated%20Balance%20Sheets) [Summary of Consolidated Balance Sheets](index=12&type=section&id=Consolidated%20Balance%20Sheets_Summary) As of December 31, 2023, total assets decreased to $206,156 thousand from $243,838 thousand in 2022, primarily due to a reduction in cash and cash equivalents. - Cash and cash equivalents decreased by **$38,054 thousand (23.6%)** from 2022 to 2023[37](index=37&type=chunk) - Total liabilities increased by **$11,006 thousand (25.2%)** from 2022 to 2023, mainly due to increases in accrued expenses and deferred contract revenue[37](index=37&type=chunk) Consolidated Balance Sheets (USD thousands) | Metric (USD thousands) | 2023 | 2022 | | :--------------------- | :------- | :------- | | Cash and cash equivalents | 123,251 | 161,305 | | Total current assets | 148,047 | 196,255 | | Total non-current assets | 58,109 | 47,583 | | Total assets | 206,156 | 243,838 | | Total current liabilities | 35,621 | 26,810 | | Total non-current liabilities | 19,093 | 16,898 | | Total liabilities | 54,714 | 43,708 | | Total equity | 151,442 | 200,130 | [Consolidated Statements of Changes in Equity](index=13&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) [Summary of Consolidated Statements of Changes in Equity](index=13&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity_Summary) Total equity decreased from $200,130 thousand in 2022 to $151,442 thousand in 2023, primarily due to the loss for the period, partially offset by positive other comprehensive loss and share-based compensation. - Accumulated deficit increased from **$(298,803) thousand** in 2022 to **$(377,784) thousand** in 2023[37](index=37&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk) - Share capital increased from **$3,464 thousand** in 2022 to **$4,048 thousand** in 2023, and treasury shares increased significantly[37](index=37&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk) Consolidated Statements of Changes in Equity (USD thousands) | Metric (USD thousands) | 2023 | 2022 | 2021 | | :--------------------- | :------- | :------- | :------- | | Total Equity (Start of Year) | 200,130 | 275,400 | 100,510 | | Loss for the period | (78,981) | (87,449) | (73,675) | | Other comprehensive loss | 14,825 | (2,182) | (4,275) | | Share-based compensation | 15,242 | 13,613 | 8,514 | | Total Equity (End of Year) | 151,442 | 200,130 | 275,400 | [Consolidated Statements of Cash Flows](index=15&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) [Summary of Consolidated Statements of Cash Flows](index=15&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows_Summary) Net cash used in operating activities decreased in 2023, while net cash provided from investing activities turned positive. - Net cash used in operating activities decreased by **$21,518 thousand (30.7%)** from 2022 to 2023[42](index=42&type=chunk) - Investing activities generated **$8,320 thousand** in cash in 2023, a decrease from **$41,973 thousand** in 2022, primarily due to reduced proceeds from term deposits[42](index=42&type=chunk) Consolidated Statements of Cash Flows (USD thousands) | Metric (USD thousands) | 2023 | 2022 | 2021 | | :--------------------- | :------- | :------- | :------- | | Net cash flows used in operating activities | (48,575) | (70,093) | (57,939) | | Net cash flow provided from (used in) investing activities | 8,320 | 41,973 | (56,934) | | Net cash flow (used in) provided from financing activities | (2,817) | (1,568) | 237,773 | | Increase (decrease) in cash and cash equivalents | (43,072) | (29,688) | 122,900 | | Cash and cash equivalents at end of the year | 123,251 | 161,305 | 192,962 | [Notes to the Consolidated Financial Statements](index=16&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) [1. Company Information and Operations](index=16&type=section&id=1.%20Company%20information%20and%20operations) SOPHiA GENETICS SA, a cloud-native software company in healthcare, is headquartered in Rolle, Switzerland, and focuses on data-driven medicine. - SOPHiA GENETICS SA (NASDAQ: SOPH) is a cloud-native software company focused on data-driven medicine, headquartered in Rolle, Switzerland[44](index=44&type=chunk) - The company completed its Initial Public Offering (IPO) on the Nasdaq Global Market in July 2021, raising **$211.7 million** net proceeds[48](index=48&type=chunk) Share Information | Metric | 2023 | 2022 | | :----- | :------------- | :------------- | | Issued Shares | 76,898,164 | 66,398,164 | | Outstanding Shares | 65,230,559 | 64,231,220 | | Treasury Shares | 11,667,605 | 2,166,944 | [2. Material Accounting Policies](index=17&type=section&id=2.%20Material%20accounting%20policies) The consolidated financial statements are prepared in accordance with IFRS Accounting Standards, using the U.S. dollar as the reporting currency. - Consolidated financial statements are prepared in accordance with IFRS Accounting Standards, with the U.S. dollar as the presentation currency[54](index=54&type=chunk)[60](index=60&type=chunk) - Significant estimates and judgments are applied to revenue recognition, capitalized internal software development costs, share-based compensation, expected credit loss, goodwill, defined benefit pension liabilities, uncertain tax positions, and derivatives[61](index=61&type=chunk) - The company classifies financial assets at amortized cost (cash, term deposits, accounts receivable) or fair value through income, and financial liabilities at amortized cost (accounts payable, debt) or fair value through income (derivatives)[69](index=69&type=chunk)[73](index=73&type=chunk)[80](index=80&type=chunk) [3. Segment Reporting](index=21&type=section&id=3.%20Segment%20reporting) SOPHiA GENETICS SA operates as a single operating segment, with financial performance assessed by the CEO. - The Company operates in a single operating segment, with its financial information reviewed and performance assessed by the Chief Executive Officer (CEO)[88](index=88&type=chunk) Non-Current Assets by Country (USD thousands) | Country | 2023 (USD thousands) | 2022 (USD thousands) | | :------------ | :------------------- | :------------------- | | Switzerland | 46,370 | 39,052 | | France | 3,000 | 498 | | United States | 913 | 1,803 | | Brazil | 6 | 6 | | Total | 50,289 | 41,359 | [4. Revenue](index=22&type=section&id=4.%20Revenue) Revenue recognition involves significant judgment, particularly in determining stand-alone selling prices for the SOPHiA DDM Platform's multiple performance obligations. - Revenue recognition requires significant judgment, especially for determining stand-alone selling prices for the SOPHiA DDM Platform's analyses and DNA enrichment kits[90](index=90&type=chunk)[108](index=108&type=chunk) - The SOPHiA DDM Platform generates revenue from dry lab access, bundle arrangements (including DNA enrichment kits), and integrated solutions, with analysis revenue recognized when results are available[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk)[99](index=99&type=chunk) Revenue by Stream (USD thousands) | Revenue Stream (USD thousands) | 2023 | 2022 | 2021 | | :----------------------------- | :------- | :------- | :------- | | SOPHiA DDM Platform | 60,904 | 45,679 | 39,465 | | Workflow equipment and services | 1,467 | 1,881 | 985 | | Total revenue | 62,371 | 47,560 | 40,450 | Revenue by Geographic Market (USD thousands) | Geographic Market (USD thousands) | 2023 | 2022 | 2021 | | :-------------------------------- | :------- | :------- | :------- | | EMEA | 43,958 | 34,878 | 31,583 | | NORAM | 10,726 | 6,732 | 4,730 | | LATAM | 3,990 | 3,003 | 2,295 | | APAC | 3,697 | 2,947 | 1,842 | | Total revenue | 62,371 | 47,560 | 40,450 | [5. Cost of Revenue](index=27&type=section&id=5.%20Cost%20of%20revenue) Cost of revenue includes direct expenses such as computer and data storage, manufacturing, materials, personnel, and amortization of capitalized development costs, directly tied to earning revenue. - Cost of revenue comprises computer costs, data storage fees, manufacturing costs, materials and consumables, leased equipment costs, personnel expenses, and amortization of capitalized development costs[120](index=120&type=chunk) [6. Operating Expense](index=27&type=section&id=6.%20Operating%20expense) Operating expenses include research and development, selling and marketing, and general and administrative costs. - Research and development costs are stated net of government grants for R&D and innovation received as tax credits, which amounted to **$1.1 million** in 2023[121](index=121&type=chunk)[122](index=122&type=chunk) Operating Expense by Nature (USD thousands) | Operating Expense by Nature (USD thousands) | 2023 | 2022 | 2021 | | :---------------------------------------- | :--------- | :--------- | :--------- | | Raw materials and consumables used | (17,504) | (13,341) | (9,650) | | Employee benefit expenses | (60,323) | (59,333) | (53,802) | | Share-based compensation | (15,242) | (13,613) | (8,514) | | Depreciation | (5,508) | (3,791) | (2,517) | | Amortization | (2,828) | (1,780) | (1,092) | | Professional fees | (14,245) | (13,837) | (11,318) | | Less: capitalized software development costs | 7,469 | 5,820 | 3,858 | | Total | (138,151) | (135,760) | (112,047) | Employee Costs by Function (USD thousands) | Employee Costs by Function (USD thousands) | 2023 | 2022 | 2021 | | :--------------------------------------- | :------- | :------- | :------- | | Research and development costs | 31,280 | 29,169 | 23,899 | | Selling and marketing costs | 20,174 | 20,216 | 21,659 | | General and administrative costs | 36,067 | 35,041 | 25,131 | | Total | 87,521 | 84,426 | 70,689 | [7. Other Operating Income, Net](index=29&type=section&id=7.%20Other%20operating%20income%2C%20net) Other operating income (expense) includes non-regular business income and expenses such as government grants and gains on asset disposal. - Other operating income, net, increased from **$377 thousand** in 2022 to **$954 thousand** in 2023[33](index=33&type=chunk) - This category includes government grants, gains on disposal of tangible assets, and intangible write-offs[128](index=128&type=chunk) [8. Interest Income (Expense), Net and Foreign Exchange and Other Losses](index=29&type=section&id=8.%20Interest%20income%20%28expense%29%2C%20net%20and%20foreign%20exchange%20and%20other%20losses) Net interest income significantly increased to $3,959 thousand in 2023, primarily due to higher interest income. - Foreign exchange losses significantly increased from **$(447) thousand** in 2022 to **$(7,628) thousand** in 2023, primarily due to intercompany receivable balances in the parent company[129](index=129&type=chunk)[131](index=131&type=chunk) Interest Income (Expense), Net (USD thousands) | Metric (USD thousands) | 2023 | 2022 | 2021 | | :--------------------- | :------- | :----- | :----- | | Interest income | 4,547 | 1,324 | 20 | | Total interest expense | (588) | (639) | (658) | | Total Interest income (expense), net | 3,959 | 685 | (638) | Foreign Exchange and Other Losses (USD thousands) | Metric (USD thousands) | 2023 | 2022 | 2021 | | :--------------------- | :------- | :----- | :----- | | Foreign exchange gains (losses), net | (7,628) | (447) | 64 | | Total foreign exchange and other losses | (7,628) | (447) | (1,380) | [9. Income Tax](index=30&type=section&id=9.%20Income%20tax) The company's income tax expense was $(486) thousand in 2023, a shift from a benefit of $136 thousand in 2022. - The Company records tax liabilities or benefits based on management's evaluation of facts and circumstances, with inherent uncertainty in quantifying income tax positions across multiple jurisdictions[132](index=132&type=chunk)[133](index=133&type=chunk) - The company plans to indefinitely reinvest undistributed foreign earnings for all foreign subsidiaries except France, from which it received dividend payments in 2023 and 2022[150](index=150&type=chunk) Income Tax (Expense) Benefit (USD thousands) | Tax (Expense) Benefit (USD thousands) | 2023 | 2022 | 2021 | | :------------------------------------ | :----- | :----- | :----- | | Total current income tax expense | (255) | 18 | (110) | | Total deferred income tax (expense) benefit | (231) | 118 | (58) | | Total income tax (expense) benefit | (486) | 136 | (168) | Unrecognized Deferred Tax Assets (USD thousands) | Unrecognized Deferred Tax Assets (USD thousands) | 2023 | 2022 | | :----------------------------------------------- | :-------- | :-------- | | Deductible temporary differences (Tax effect) | 710 | 511 | | Net operating loss carryforwards (Tax effect) | 44,614 | 34,224 | | Total (Tax effect) | 45,324 | 34,735 | [10. Loss Per Share](index=35&type=section&id=10.%20Loss%20per%20share) Basic and diluted loss per share improved to $(1.22) in 2023 from $(1.36) in 2022, reflecting a lower net loss attributable to shareholders and an increase in the weighted average number of shares in issue. Loss Per Share (USD thousands, except per share data) | Metric (USD thousands, except per share data) | 2023 | 2022 | 2021 | | :-------------------------------------------- | :--------- | :--------- | :--------- | | Net loss attributed to shareholders | (78,981) | (87,449) | (73,675) | | Weighted average number of shares in issue | 64,750,886 | 64,099,213 | 55,299,863 | | Basic and diluted loss per share | (1.22) | (1.36) | (1.33) | [11. Cash and Cash Equivalents](index=35&type=section&id=11.%20Cash%20and%20cash%20equivalents) Cash and cash equivalents decreased to $123,251 thousand in 2023 from $161,305 thousand in 2022. - Designated cash for the D&O Policy was reduced from **$30.0 million** to **$15 million** in June 2023 due to a new policy[155](index=155&type=chunk) Cash and Cash Equivalents (USD thousands) | Category (USD thousands) | 2023 | 2022 | | :----------------------- | :------- | :------- | | Bank balances | 16,068 | 25,820 | | Money market funds | 60,683 | 85,252 | | Term deposits less than 3 months | 46,500 | 50,233 | | Total cash and cash equivalents | 123,251 | 161,305 | [12. Term Deposits](index=36&type=section&id=12.%20Term%20deposits) Term deposits with maturities over 3 months and up to 12 months decreased to zero in 2023 from $17,307 thousand in 2022. Term Deposits (USD thousands) | Category (USD thousands) | 2023 | 2022 | | :----------------------- | :--- | :----- | | Term deposits, over 3 months, up to 12 months | — | 17,307 | [13. Accounts Receivable](index=36&type=section&id=13.%20Accounts%20receivable) Net accounts receivable increased to $13,557 thousand in 2023 from $6,649 thousand in 2022. - The Company uses a simplified method (IFRS 9) to build its allowance for expected credit losses (ECL) based on historical collectability rates[157](index=157&type=chunk) Accounts Receivable (USD thousands) | Category (USD thousands) | 2023 | 2022 | | :----------------------- | :------- | :------- | | Accounts receivable | 10,259 | 6,060 | | Accrued contract revenue | 4,451 | 1,499 | | Lease receivable | 28 | 185 | | Allowance for expected credit losses | (1,181) | (1,095) | | Net accounts receivable | 13,557 | 6,649 | Movement in Allowance for ECL (USD thousands) | Movement in Allowance for ECL (USD thousands) | 2023 | 2022 | | :-------------------------------------------- | :----- | :----- | | As of January 1 | 1,095 | 1,676 | | Increase | 1,311 | 404 | | Reversals | (1,097) | (804) | | As of December 31 | 1,181 | 1,095 | [14. Inventory](index=37&type=section&id=14.%20Inventory) Total inventory increased to $6,482 thousand in 2023 from $5,156 thousand in 2022, primarily driven by an increase in raw materials. - Raw materials and finished goods are stated at the lower of cost (FIFO) and net realizable value; work in progress at the lower of weighted average cost and net realizable value[161](index=161&type=chunk) - The inventory provision increased from **$(1,503) thousand** in 2022 to **$(2,134) thousand** in 2023[162](index=162&type=chunk) Inventory (USD thousands) | Category (USD thousands) | 2023 | 2022 | | :----------------------- | :----- | :----- | | Raw materials | 7,007 | 5,195 | | Work in progress | 1,482 | 1,340 | | Finished goods | 127 | 124 | | Provision | (2,134) | (1,503) | | Total | 6,482 | 5,156 | [15. Prepaids and Other Current Assets](index=38&type=section&id=15.%20Prepaids%20and%20other%20current%20assets) Prepaids and other current assets decreased to $4,757 thousand in 2023 from $5,838 thousand in 2022, mainly due to a reduction in prepayments. Prepaids and Other Current Assets (USD thousands) | Category (USD thousands) | 2023 | 2022 | | :----------------------- | :----- | :----- | | Prepayments | 2,764 | 3,703 | | VAT receivable | 1,483 | 1,244 | | Government grants receivable | 165 | 160 | | Other | 345 | 731 | | Total | 4,757 | 5,838 | [16. Property and Equipment](index=38&type=section&id=16.%20Property%20and%20equipment) Net property and equipment increased to $7,469 thousand in 2023 from $7,129 thousand in 2022. - Property and equipment are depreciated using the straight-line method over useful lives ranging from three to five years, or the shorter of useful life or lease term for leasehold improvements[164](index=164&type=chunk)[168](index=168&type=chunk) Property and Equipment Net Book Value (USD thousands) | Category (USD thousands) | Net Book Value 2023 | Net Book Value 2022 | | :----------------------- | :------------------ | :------------------ | | Leasehold improvements | 5,279 | 5,017 | | Machinery and equipment | 982 | 961 | | Computer hardware | 629 | 490 | | Furniture and fixtures | 579 | 661 | | Total | 7,469 | 7,129 | [17. Intangible Assets](index=40&type=section&id=17.%20Intangible%20Assets) Net intangible assets increased to $27,185 thousand in 2023 from $19,963 thousand in 2022, primarily driven by capitalized internally developed software costs. - Goodwill is tested annually for impairment, with the recoverable value assessed by comparing the Company's equity value (market capitalization or discounted cash flow forecasts) to net assets[170](index=170&type=chunk)[175](index=175&type=chunk)[176](index=176&type=chunk) - Capitalized internally developed software costs are recognized as intangible assets when specific IAS 38 criteria are met, amortized over five years[172](index=172&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk) - As of October 1, 2023, the estimated equity value of the Company (**$165.8 million**) exceeded reported net assets (**$158.4 million**), indicating no impairment[187](index=187&type=chunk)[193](index=193&type=chunk) Intangible Assets Net Book Value (USD thousands) | Category (USD thousands) | Net Book Value 2023 | Net Book Value 2022 | | :----------------------- | :------------------ | :------------------ | | Goodwill | 8,999 | 8,188 | | Purchased software | 1,161 | 1,478 | | Capitalized internally developed software costs | 17,025 | 10,297 | | Total | 27,185 | 19,963 | [18. Leases](index=44&type=section&id=18.%20Leases) The company recognizes right-of-use (ROU) assets and lease liabilities for its office spaces in Rolle, Boston, and Bidart. - The Company recognizes ROU assets and lease liabilities for contracts that are or contain a lease, depreciating ROU assets over the shorter of the lease duration or useful life[194](index=194&type=chunk)[195](index=195&type=chunk) - New significant leases were entered for office spaces in Rolle, Switzerland (amendment for **21,258 sq ft**) and Bidart, France (**13,509 sq ft**) in 2022 and 2023, respectively[203](index=203&type=chunk)[207](index=207&type=chunk) Lease Metrics (USD thousands) | Metric (USD thousands) | 2023 | 2022 | | :--------------------- | :------- | :------- | | Right-of-use assets (end of year) | 15,635 | 14,268 | | Lease liabilities (end of year) | 18,601 | 16,743 | [19. Other Non-Current Assets](index=47&type=section&id=19.%20Other%20non-current%20assets) Other non-current assets increased to $6,100 thousand in 2023 from $4,283 thousand in 2022, primarily due to an increase in research tax credit receivable. Other Non-Current Assets (USD thousands) | Category (USD thousands) | 2023 | 2022 | | :----------------------- | :----- | :----- | | Research tax credit receivable | 4,743 | 3,342 | | Guarantee deposits | 1,357 | 941 | | Total | 6,100 | 4,283 | [20. Accounts Payable](index=47&type=section&id=20.%20Accounts%20payable) Accounts payable decreased to $5,391 thousand in 2023 from $6,181 thousand in 2022, mainly due to a reduction in employee-related payables. Accounts Payable (USD thousands) | Category (USD thousands) | 2023 | 2022 | | :----------------------- | :----- | :----- | | Trade payables | 2,256 | 2,170 | | Employee related payables | 2,366 | 3,655 | | VAT, sales, and other taxes | 769 | 356 | | Total | 5,391 | 6,181 | [21. Accrued Expenses](index=48&type=section&id=21.%20Accrued%20expenses) Accrued expenses increased to $17,808 thousand in 2023 from $14,505 thousand in 2022, primarily driven by higher accrued compensation and IT support costs. Accrued Expenses (USD thousands) | Category (USD thousands) | 2023 | 2022 | | :----------------------- | :----- | :----- | | Accrued Compensation | 13,578 | 10,268 | | Accrued Professional Fees | 2,612 | 2,162 | | Accrued IT Support | 613 | 22 | | Accrued Other | 586 | 1,451 | | Total | 17,808 | 14,505 | [22. Post-Employment Benefits](index=48&type=section&id=22.%20Post-employment%20benefits) The company operates both defined benefit and defined contribution pension plans, with a net pension liability of $(3,086) thousand in 2023. - The Company operates funded defined benefit plans in Switzerland and unfunded plans in France, along with defined contribution plans in the US[223](index=223&type=chunk) - Actuarial gains (losses) from experience adjustments and changes in assumptions are recognized in other comprehensive income[219](index=219&type=chunk)[228](index=228&type=chunk) - Key actuarial assumptions for 2023 included a Swiss discount rate of **1.50%** (down from 2.25% in 2022) and a French discount rate of **3.55%** (down from 3.90% in 2022)[232](index=232&type=chunk)[234](index=234&type=chunk) Net Pension Liability (USD thousands) | Metric (USD thousands) | 2023 | 2022 | | :--------------------- | :------- | :------- | | Present value of defined benefit obligation | (23,013) | (19,252) | | Fair value of plan assets | 19,927 | 16,577 | | Net pension liability | (3,086) | (2,675) | [23. Share-Based Compensation](index=54&type=section&id=23.%20Share-based%20compensation) Share-based compensation expense increased to $15,242 thousand in 2023 from $13,613 thousand in 2022. - Share-based compensation expense is measured at the fair value of options at the grant date using the Black-Scholes option pricing model and recognized over the vesting period[245](index=245&type=chunk)[246](index=246&type=chunk)[252](index=252&type=chunk) - In 2023, **3,734,266 options** were granted under the 2021 EIP, and **2,658,150 RSUs** were granted, subject to various vesting schedules[268](index=268&type=chunk)[272](index=272&type=chunk) Share-based Compensation Expense by Function (USD thousands) | Share-based Compensation Expense (USD thousands) | 2023 | 2022 | 2021 | | :----------------------------------------------- | :----- | :----- | :----- | | Research and development | 3,440 | 2,245 | 784 | | Sales and marketing | 1,266 | 1,462 | 1,227 | | General and administrative | 10,536 | 9,906 | 6,503 | | Total | 15,242 | 13,613 | 8,514 | [24. Borrowings](index=61&type=section&id=24.%20Borrowings) As of December 31, 2023, SOPHiA GENETICS SA had no outstanding borrowings under its CHF 5.0 million revolving credit facility with Credit Suisse SA. - The Company has a revolving credit facility of up to **CHF 5.0 million** with Credit Suisse SA, but had no outstanding borrowings as of December 31, 2023[274](index=274&type=chunk) [25. Share Capital Issuance](index=61&type=section&id=25.%20Share%20capital%20issuance) The company performed a one-to-twenty share split and converted all preferred shares to ordinary shares in 2021, prior to its IPO. - On June 30, 2021, the Company effected a one-to-twenty share split and converted all preferred shares to ordinary shares[47](index=47&type=chunk)[276](index=276&type=chunk) - The Board of Directors will not propose any dividend for the year ended December 31, 2023[276](index=276&type=chunk) [26. Related Parties](index=62&type=section&id=26.%20Related%20parties) Related parties include executive officers and directors. - Key management personnel comprised six Executive Officers and Directors and seven Non-Executive Directors for the year ended December 31, 2023[278](index=278&type=chunk) Key Management Personnel Compensation (USD thousands) | Compensation (USD thousands) | 2023 | 2022 | 2021 | | :--------------------------- | :----- | :----- | :----- | | Salaries and other short-term employee benefits | 4,234 | 3,782 | 2,805 | | Pension costs | 228 | 196 | 117 | | Share-based compensation expense | 10,597 | 8,936 | 6,906 | | Total | 15,059 | 12,914 | 9,828 | [27. Commitments and Contingencies](index=62&type=section&id=27.%20Commitments%20and%20contingencies) As of December 31, 2023, the company had no commitments for future lease payments under short-term leases. - The Company has commitments of approximately **$69.4 million** in computational and hosting-related costs with Microsoft Corporation through October 31, 2027[281](index=281&type=chunk) - As of December 31, 2023 and 2022, the Company had no contingent assets or liabilities[282](index=282&type=chunk) [28. Financial Instruments and Risks](index=63&type=section&id=28.%20Financial%20instruments%20and%20risks) The company's financial instruments primarily consist of cash, term deposits, accounts receivable (assets) and accounts payable, accrued expenses, and lease liabilities (liabilities). - The Company is exposed to credit and counterparty risk, funding and liquidity risk, and market risk (foreign currency and interest rate risk)[295](index=295&type=chunk) - Foreign exchange losses significantly impacted loss before tax, with a **10% increase in USD/CHF exchange rate** potentially leading to a **$3,034 thousand increase in loss before tax** in 2023[305](index=305&type=chunk) Financial Instruments (USD thousands) | Financial Instrument (USD thousands) | 2023 | 2022 | | :----------------------------------- | :------- | :------- | | Financial assets at amortized cost | 138,190 | 186,226 | | Financial liabilities at amortized cost | 41,800 | 37,429 | [29. Capital Management](index=67&type=section&id=29.%20Capital%20management) The company's primary objective is to maximize shareholder value, maintaining a capital structure that supports strategic objectives. - The primary objective of capital management is to maximize shareholder value, supported by managing funding and liquidity risks[308](index=308&type=chunk)[309](index=309&type=chunk) - As of December 31, 2023, cash and cash equivalents amounted to **$123.3 million**, which management believes is sufficient to meet obligations for at least the next twelve months[309](index=309&type=chunk)[310](index=310&type=chunk) [30. Events After the Reporting Date](index=68&type=section&id=30.%20Events%20after%20the%20reporting%20date) The company evaluated events occurring after the reporting date and found no material subsequent events requiring recognition or disclosure. - No material subsequent events were identified after the reporting date up to the authorization for issuance of the consolidated financial statements[311](index=311&type=chunk)

BOSTON and ROLLE, Switzerland, Feb. 20, 2024 (GLOBE NEWSWIRE) -- SOPHiA GENETICS (Nasdaq: SOPH), a cloud-native software company and a leader in data-driven medicine, today announced it will release its financial results for the fourth quarter and full-year 2023 before U.S. markets open on Tuesday, March 5, 2024. On that day, SOPHiA GENETICS will host a conference call to discuss its financial results as well as business outlook beginning at 8:00 a.m. (08:00) EDT / 2:00 p.m. (14:00) CET. The call will be we ...

BOSTON and ROLLE, Switzerland, Feb. 20, 2024 (GLOBE NEWSWIRE) -- SOPHiA GENETICS (Nasdaq: SOPH), a cloud-native software company and a leader in data-driven medicine, today announced it will release its financial results for the fourth quarter and full-year 2023 before U.S. markets open on Tuesday, March 5, 2024. On that day, SOPHiA GENETICS will host a conference call to discuss its financial results as well as business outlook beginning at 8:00 a.m. (08:00) EDT / 2:00 p.m. (14:00) CET. The call will be we ...

SOPHiA GENETICS and AstraZeneca Spain expand HRD testing program to support molecular diagnosis of ovarian cancer in Spain BOSTON and ROLLE, Switzerland and MADRID, Feb. 7, 2024 /PRNewswire/ -- SOPHiA GENETICS (Nasdaq: SOPH), a cloud-native software company and a leader in data-driven medicine, today announced it has expanded an existing program in Spain to increase access to local testing for homologous recombination deficiency (HRD) throughout the country. The expansion of the program, supported by AstraZ ...

The company announced Bioma4me has implemented SOPHiA DDM™ to support its rare disorder testing capabilities BOSTON and ROLLE, Switzerland, Jan. 25, 2024 /PRNewswire/ -- SOPHiA GENETICS (Nasdaq: SOPH), a cloud-native software company in the healthcare space and a leader in data-driven medicine, today announced that Bioma4me, a Brazil-based company focused on genetic sequencing to drive precision medicine to the Brazilian population, is now live on the SOPHiA DDM™ Platform. The company will use SOPHiA GENETI ...

RareCyte will use the SOPHiA DDM™ Platform to support its oncology testing panel BOSTON and ROLLE, Switzerland, Jan. 18, 2024 /PRNewswire/ -- SOPHiA GENETICS (Nasdaq: SOPH), a cloud-native software company and a leader in data-driven medicine, today announced that RareCyte Inc., a precision biology company based in Seattle, Washington, is live on SOPHiA GENETICS. RareCyte has implemented the SOPHiA DDM™ Platform to complement its  Precision Biology Services portfolio. RareCyte is an innovative precision bi ...

SOPHiA GENETICS technology helps advance cancer research across India SOPHiA GENETICS and Karkinos Healthcare join forces to propel cutting-edge genomic solutions for breakthroughs in personalized cancer care in India BOSTON and ROLLE, Switzerland, Jan. 14, 2024 /PRNewswire/ -- SOPHiA GENETICS (Nasdaq: SOPH), a cloud-native software company and a leader in data-driven medicine, today announced that Karkinos Healthcare, a purpose-driven cancer care technology network based in India, will partner with SOPHiA ...

Strong SOPHiA DDM™ adoption and analysis volume contributes to continued revenue growth Liquid biopsy and HRD on SOPHiA DDM™ Platform continue to grow year-over-year, with Tennessee Oncology, Dasa and The Royal Marsden announced today BOSTON and ROLLE, Switzerland, Jan. 10, 2024 /PRNewswire/ -- SOPHiA GENETICS (Nasdaq: SOPH), a cloud-native software company and a leader in data-driven medicine, will share an overview of its near-term growth strategy, fueled by strong adoption and opportunity for the SOPHiA ...