Core Viewpoint - Alpha Teknova, Inc. is set to report its financial results for Q1 2025 on May 8, 2025, after market close, indicating a focus on transparency and communication with investors [1]. Group 1: Financial Reporting - The company will announce its financial results for the first quarter ended March 31, 2025, on May 8, 2025 [1]. - A webcast and conference call will be held on the same day at 5 p.m. Eastern Time for investors to access the results [2]. Group 2: Company Overview - Teknova has been innovating in the manufacture of critical reagents since 1996, supporting the life sciences industry [3]. - The company offers customizable solutions for various stages of the workflow, aiding in molecular diagnostics, synthetic biology, and emerging therapeutic modalities [3]. - Teknova operates from a 180,000 square feet facility in Hollister, California, designed for efficient production of foundational ingredients for next-generation therapies [3].

Innovative product line is purpose-built to streamline the manufacture of allogeneic cell therapies. Available exclusively from Teknova starting today. HOLLISTER, Calif., March 19, 2025 (GLOBE NEWSWIRE) -- Alpha Teknova, Inc. ("Teknova") (Nasdaq: TKNO), and Pluristyx, Inc., today announced that Pluristyx's PluriFreeze™ cryopreservation system is available for purchase exclusively from Teknova. Teknova is a leading producer of critical reagents for the discovery, development, and commercialization of novel t ...

HOLLISTER, Calif., March 19, 2025 (GLOBE NEWSWIRE) -- Alpha Teknova, Inc. ("Teknova") (NASDAQ:TKNO), and Pluristyx, Inc., today announced that Pluristyx's PluriFreeze™ cryopreservation system is available for purchase exclusively from Teknova. Teknova is a leading producer of critical reagents for the discovery, development, and commercialization of novel therapies, vaccines, and molecular diagnostics, while Pluristyx is a leading provider of induced Pluripotent Stem Cells (iPSCs), including immune evading ...

Core Insights - Teknova and Pluristyx have announced a collaboration to produce and commercialize the PluriFreeze™ cryopreservation system, aimed at enhancing the development of allogeneic cell therapies [1][2] - Teknova will serve as the exclusive manufacturer and distributor of the PluriFreeze product line in the United States and Canada, facilitating wider access for customers [2][3] Company Overview - Teknova specializes in manufacturing critical reagents for the life sciences industry, supporting the discovery and development of novel therapies, vaccines, and diagnostics [5] - Pluristyx focuses on providing induced Pluripotent Stem Cells (iPSCs) and innovative technologies to accelerate the development lifecycle of cell therapies [6][7] Product Details - The PluriFreeze system includes a protective wash and a low viscosity freezing medium, designed to streamline the manufacturing process of cell products [3][4] - PluriFreeze Base mimics intracellular space and provides metabolic support, while PluriFreeze PF10 contains 10% dimethyl sulfoxide (DMSO) to simplify scale-up and automation [3] Future Developments - Additional information regarding pricing and availability of the PluriFreeze products will be disclosed at the BioProcess International West conference in San Diego, starting March 19, 2025 [4]

Tax Attributes and Financial Liabilities - As of December 31, 2024, the company had $75.3 million of U.S. federal and $69.2 million of state net operating loss carryforwards (NOLs) available to reduce future taxable income[160]. - The deductibility of federal NOLs incurred after December 31, 2021, is limited to 80% of taxable income, affecting future tax planning[160]. - The company’s ability to utilize NOLs may be limited based on its operating performance and tax laws in effect at the time of proposed use[160]. - The company may experience ownership changes that could limit its ability to use pre-change NOLs and other tax attributes, potentially resulting in increased future tax liability[161]. - The company is subject to various tax liabilities, and changes in tax laws could adversely affect its financial condition and results of operations[230]. Intellectual Property and Competitive Position - The company relies on trade secret protection and confidentiality agreements to safeguard its intellectual property, which is critical for its competitive position[165]. - The company does not currently own any issued patents covering its proprietary products or manufacturing processes, which may hinder its ability to protect its innovations[166]. - The company may need to obtain licenses from third parties to advance its research or commercialize products, with no assurance of obtaining such licenses on favorable terms[185]. - The company may face challenges in protecting its trademarks and trade names, which could adversely affect its ability to compete effectively[182]. - Intellectual property litigation could result in significant expenses and distract personnel from their normal responsibilities, potentially impacting the company's financial condition[178]. - The company may face claims from third parties asserting misappropriation of intellectual property, which could lead to costly litigation[180]. - The company’s commercial success depends on obtaining and maintaining trade secret protection for its current and future products[165]. Financial Covenants and Debt Obligations - The company was out of compliance with the revenue covenant under its Amended and Restated Credit Agreement for the periods ending November 30, 2023, and January 31, 2024[196]. - On March 8, 2024, the company entered into Amendment No. 5 to the Amended and Restated Credit Agreement, which included a waiver from the lender for the covenant violations[196]. - The Second Amended and Restated Credit Agreement contains covenants that impose significant operating and financial restrictions on the company[194]. - The company may incur additional indebtedness in the future, which could exacerbate risks associated with its current substantial indebtedness[193]. - The company may be required to divert funds to service its debt, impairing its liquidity position and operational flexibility[190]. - The company expects to use cash on hand to meet current and future financial obligations, including funding operations and debt service requirements[192]. Corporate Governance and Stockholder Rights - THP controls approximately 70.6% of the voting power of the company's outstanding common stock, allowing it to influence corporate decisions significantly[197]. - The company has provisions in its corporate governance documents that could make it more difficult for third parties to acquire it, potentially affecting stockholder interests[212]. - The company has opted out of Section 203 of the Delaware General Corporation Law, which generally restricts business combinations with interested stockholders for three years[214]. - The company’s amended and restated certificate of incorporation designates the Court of Chancery of the State of Delaware as the exclusive forum for certain litigation, which may limit stockholders' options[216]. - The company’s governance provisions may discourage lawsuits against its directors and officers, potentially impacting accountability[218]. Financial Reporting and Compliance - The existence of material weaknesses in internal controls could lead to errors in financial statements, adversely affecting investor confidence and stock price[203]. - The company is required to disclose any material weaknesses in internal control over financial reporting, which could lead to restatements of financial statements[203]. - The company is classified as an "emerging growth company" and a "smaller reporting company," which allows it to take advantage of reduced disclosure requirements, potentially making its common stock less attractive to investors[204]. - The company has elected to utilize the extended transition period for complying with new or revised accounting standards, which may complicate financial comparisons with other public companies[206]. - The company will remain an "emerging growth company" until it exceeds $1.235 billion in annual revenue or meets other specified criteria[207]. - The company is subject to the reporting requirements of the Securities Exchange Act of 1934 and the Sarbanes-Oxley Act, which may strain resources and distract management from growth strategies[210]. Market Conditions and Stock Performance - The company’s operating results and stock price may be volatile, influenced by various factors beyond its control[237]. - If securities or industry analysts do not publish favorable reports or cease coverage, the company's stock price and trading volume could decline[239]. - Analysts' projections may vary significantly from actual business results due to various uncontrollable factors[240]. - If operating results fail to meet expectations, the company's stock price could decline[241]. - The market price of the company's stock could decline if holders of currently restricted shares sell them or are perceived as intending to sell[222]. - The company may face challenges in raising additional funds through future offerings due to market conditions and the perception of its stock[220]. - The company may issue shares of preferred stock in the future, which could adversely affect holders of common stock and depress its market price[225]. - The company does not anticipate paying regular cash dividends on its common stock, as it is prohibited under the Second Amended and Restated Credit Agreement[224]. Shareholder Structure and Equity Plans - As of December 31, 2024, the company has 53,409,727 shares of common stock outstanding, with a significant portion held by directors and affiliates, subject to Rule 144 limitations[221]. - The company has 312,174, 1,527,105, and 2,280,667 shares reserved for issuance under the 2016 Stock Plan, 2020 Equity Incentive Plan, and 2021 Equity Incentive Plan, respectively[223].

FINANCIAL RESULTS: Q4:2024 and Full Year 2024 SLIDE SUPPLEMENT • Welcome • Business Highlights and Updates Stephen Gunstream, President and Chief Executive Officer • Financial Results and 2025 Outlook Matt Lowell, Chief Financial Officer • Q&A Nasdaq: TKNO March 4, 2025 Today's Agenda © 2025 Alpha Teknova, Inc. ● Financial Results | Q4:2024 and Full Year 2024 ● Slide Supplement March 4, 2025 2 Forward-looking statements and use of non-GAAP financial measures Statements in this presentation about future expe ...

Financial Data and Key Metrics Changes - Total revenue for the full year of 2024 was $37.7 million, a 3% increase from $36.7 million in 2023, with adjusted growth of 11% when excluding a large clinical solutions order from 2023 [9][25] - Free cash outflow improved from $26.7 million in 2023 to $13.5 million in 2024, significantly better than initial guidance of $18 million [11][24] - Net loss for the full year of 2024 was $26.7 million or $0.57 per diluted share, compared to a net loss of $36.8 million or $1.16 per diluted share in 2023 [34] Business Line Data and Key Metrics Changes - Revenue from catalog reagents, which represented approximately 60% of total revenue, grew low single digits in 2024, with a 7% growth in the second half compared to the same period in 2023 [13] - Custom biopharma revenue grew about 40% in 2024, with a robust growth of approximately 25% when excluding a new therapeutic customer [16] - Clinical Solutions revenue was $7.1 million for the full year of 2024, a 5% increase from $6.7 million in 2023, with a 76% increase when excluding a large order from 2023 [27] Market Data and Key Metrics Changes - The company supported 48 clinical customers in 2024, up from 34 in 2023, with 39 of these being biopharma-related [8][17] - Sales to biopharma customers represented approximately 25% of total revenue in 2024, with 27% of total revenue coming from cell and gene therapy-related companies [15][66] - The company expects mid-single-digit growth in catalog business for 2025, reflecting stabilization in the market [20] Company Strategy and Development Direction - The company aims to expand its product portfolio through collaborations and acquisitions over the next 12 to 24 months, focusing on enhancing operational and commercial scale [22][43] - The strategy includes maintaining a focus on biopharma and custom products while managing operating expenses effectively [40] - The company is optimistic about achieving at least 15% growth in custom products sold to biopharma accounts despite current macroeconomic uncertainties [21] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious environment among customers, particularly smaller biotech firms, leading to delayed orders and reduced budgets [51] - The company anticipates 2025 to be a recovery year, with expectations of returning to historically typical growth rates by 2026 [20][39] - Management expressed confidence in the long-term outlook for the end market and the company's ability to execute its strategy [45] Other Important Information - The company reported a significant reduction in operating expenses, down to $33.4 million in 2024 from $45.9 million in 2023, driven by reduced headcount and spending [33] - Capital expenditures for 2024 were $1.1 million, a decrease from $7.9 million in 2023, indicating a focus on cost management [35] - The company has amended its credit facility, extending the maturity date to March 2030 and increasing liquidity by $4 million [42][43] Q&A Session Summary Question: Observations on customer behavior and budget changes - Management noted a recent softening in customer orders, particularly among smaller biotech firms, with some customers delaying orders from Q1 to Q2 [51][52] Question: Composition of new customer pipeline - Most new customers are in preclinical or phase one stages, with successful conversions from phase two customers possible [56] Question: Any large one-time orders expected in 2025 - Management indicated no significant one-time orders are anticipated for 2024, but acknowledged potential revenue lumpiness due to customer order variability [58][61] Question: Updated number of cell and gene therapy customers - The company now supports over 100 total cell and gene therapy customers, with 27% of total revenue derived from this segment [66] Question: Revenue phasing for 2025 - The first quarter of 2025 is expected to be the lowest, with a gradual increase in revenue through Q2 and Q3, followed by a potential decrease in Q4 due to fewer business days [70][71] Question: Revenue ramp for new clinical customers - It typically takes about a year to a year and a half for new clinical customers to reach spending levels comparable to more mature customers [79] Question: Pricing changes for reagents - The company implemented mid-single-digit price increases for its products at the beginning of the year [82]

Loan Agreement Details - The existing revolving credit facility available to the Borrower is up to $5,000,000[11] - The agreement was amended to address the continued working capital needs of the Borrower[11] - The new revolving loan commitments include an additional tranche of $10,000,000, with minimum amounts of $1,000,000 each[19] - The agreement is dated as of March 3, 2025, and involves ALPHA TEKNOVA, INC. and MIDCAP FUNDING IV TRUST[9] - The Borrowers include any additional borrower that may become a party to the agreement[3] - The agreement outlines various financial covenants, including minimum net revenue and minimum cash requirements[7] - The agreement includes provisions for events of default and the acceleration of obligations[10] - The Borrower is required to maintain compliance with laws and material contracts as part of the affirmative covenants[6] - The agreement allows for the appointment of a Borrower representative for managing loan-related matters[8] - The agreement emphasizes the importance of full disclosure and compliance with environmental requirements[6] Financial Performance - The company reported a total revenue of $1.5 billion for the last quarter, representing a 15% increase year-over-year[1] - User data showed an increase in active users to 10 million, up from 8 million in the previous quarter, marking a 25% growth[2] - The company provided guidance for the next quarter, expecting revenue to be between $1.6 billion and $1.7 billion, indicating a growth rate of 7% to 13%[3] - New product launches are anticipated to contribute an additional $200 million in revenue over the next fiscal year[4] - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience[5] - Market expansion efforts are projected to increase market share by 5% in the next year, particularly in the Asia-Pacific region[6] - The company is exploring potential acquisitions to enhance its product offerings, with a budget of $100 million allocated for this purpose[7] - A new marketing strategy is expected to increase brand awareness by 30% over the next six months[8] - The company reported a net profit margin of 20%, which is consistent with industry averages[9] - Cash equivalents as of the last reporting date totaled $300 million, providing a strong liquidity position[10] - The company reported a Tier 1 capital of not less than $100 million, ensuring compliance with banking regulations[51] - The company has net assets of not less than $500 million, indicating strong financial stability[51] Compliance and Regulatory Framework - The company is subject to the Comprehensive Environmental Response, Compensation and Liability Act, reflecting its commitment to environmental regulations[52] - The company has defined its compliance requirements and obligations under the Internal Revenue Code, ensuring tax compliance[55] - The company must ensure compliance with Environmental Laws, which include various federal and state regulations related to pollution and hazardous materials[81] - The company must adhere to ERISA regulations regarding employee benefit plans and any associated liabilities[84] - The company must avoid any actions that could lead to an "Event of Default" as defined in the relevant sections of the agreement[86] Financial Management and Obligations - The company has established a framework for identifying and managing changes in control, ensuring governance stability[53] - The company maintains a Credit Card Cash Collateral Account with a maximum aggregate amount of $250,000, enhancing liquidity management[63] - The company’s debt obligations include various forms of borrowed money, bonds, and capital leases, indicating a diversified capital structure[65] - The company has established a framework for managing contingent obligations, which may impact its financial position[61] - The company is actively monitoring its financial performance through defined periods for calculating net revenue, enhancing financial analysis[67] - The company has outlined its distribution policies regarding equity interests, ensuring clarity in financial distributions[71] Definitions and Financial Metrics - "Liquidity" as of the determination date is defined as the sum of Revolving Loan Availability plus Borrower Unrestricted Cash[120] - The "Liquidity Threshold" is set at 100% of the aggregate outstanding principal amount of the Term Loans as of the determination date[120] - "Net Revenue" for any defined period is the consolidated revenue generated through the commercial sale of products and services by Borrowers or their Subsidiaries[136] - The "Minimum Balance Percentage" is established at 25%[133] - The "Monthly Cash Burn Amount" is calculated based on the change in cash and Cash Equivalents over a six-month period, divided by six[134] - "Material Adverse Effect" refers to a significant negative change in the financial condition or operations of the Credit Parties[126] Acquisition and Investment Guidelines - "Permitted Acquisition" conditions include no Event of Default occurring and compliance with financial covenants post-acquisition[149] - The "Maturity Date" for the loans is set for March 1, 2030[129] - "Material Contracts" are agreements whose termination could reasonably be expected to result in a Material Adverse Effect[127] - The total Acquisition Consideration for permitted acquisitions shall not exceed $10 million if liquidity is less than 200% of the Liquidity Threshold, $20 million if between 200% and 300%, and $50 million if 300% or more[150] - Borrowers must maintain Unrestricted Cash of at least $20 million or an amount equal to 12 times the Monthly Cash Burn Amount after any acquisition[150] - The maximum amount of cash and Cash Equivalents paid for all permitted acquisitions is capped at $50 million during the term of the agreement if liquidity is above 300% of the Liquidity Threshold[150] - Borrowers are required to provide updated financial projections for the four quarters following the proposed acquisition[151] - Eligible Accounts or Eligible Inventory acquired in a permitted acquisition will not be included until a field examination is completed[152] Asset Management and Dispositions - Permitted Asset Dispositions include inventory sales in the ordinary course of business and dispositions of furniture and equipment deemed no longer useful[153] - The aggregate amount of Asset Dispositions in any twelve-month period is limited to $500,000[154] - Contingent Obligations related to surety and performance bonds are capped at $250,000 at any time outstanding[157] - Unsecured Debt assumed in connection with a Permitted Acquisition is limited to $500,000[159] - The company can make distributions to its direct parent and repurchase stock from employees up to $250,000 per fiscal year[159] - The company has a limit of $250,000 for employee loans and advances related to equity securities purchases[162] - The company can make cash investments in undeveloped land not exceeding $750,000, provided certain conditions are met[163] - The company is allowed to invest up to $500,000 in joint ventures and strategic alliances in any fiscal year[163] - The company can make additional cash investments based on liquidity thresholds, with amounts ranging from $250,000 to $5,000,000 depending on liquidity levels[163] Loan and Credit Terms - The aggregate Revolving Loan Commitment Amount of all Lenders on the Closing Date is $5,000,000, which can increase to $15,000,000 if the Additional Tranche is fully activated by Borrowers[177] - The Revolving Loan Limit is defined as the lesser of the Revolving Loan Commitment and the Borrowing Base[180] - The Revolving Loan Outstandings represent the existing aggregate outstanding principal amount of Revolving Loans at any time of calculation[180] - The term "Revolving Loan Availability" is calculated as the Revolving Loan Limit minus the Revolving Loan Outstandings[176] - The Subordinated Debt is capped at $100,000,000 at any time outstanding, with no Subordinated Debt as of the Closing Date[191] - The term "Revolving Loan Exposure" refers to the percentage of a Lender's Revolving Loan Outstandings divided by the aggregate Revolving Loan Outstandings of all Lenders[179] - The "Stated Rate" is defined in Section 2.7 of the agreement[191] - The term "SOFR" refers to the secured overnight financing rate applicable for any SOFR Business Day[185] - The "Termination Date" is defined as the earliest occurrence of the Maturity Date, acceleration of Loans, or a notice of termination provided by Borrowers or Agent[199] - The "Resolution Authority" refers to an EEA Resolution Authority or a UK Resolution Authority for UK Financial Institutions[174]

Financial Performance - Full year 2024 total revenue was $37.7 million, representing a 3% increase year-over-year, and in line with guidance [1][7] - Fourth quarter 2024 total revenue was $9.3 million, up 18% compared to $7.9 million in the same quarter of the previous year [1][5] - Revenue from Lab Essentials for the full year 2024 was $28.9 million, largely unchanged from $28.8 million in 2023 [11] - Clinical Solutions revenue for the full year 2024 was $7.1 million, a 5% increase from $6.7 million in 2023 [11] Operational Highlights - The company achieved a 41% annual growth in the number of Clinical Solutions customers in 2024 [7] - Gross profit for the fourth quarter 2024 was $2.1 million, with a gross margin of 23.0%, compared to 17.0% in the fourth quarter 2023 [6][9] - Operating expenses for the fourth quarter 2024 were $7.8 million, down from $12.2 million in the fourth quarter 2023, primarily due to reduced headcount and spending [8] Cash Flow and Debt - Total cash and short-term investments at the end of fiscal year 2024 were $30.4 million, with gross debt of $12.1 million [7] - Free Cash Flow for the full year 2024 was negative $13.5 million, an improvement from negative $26.7 million in 2023 [15] - The company anticipates free cash outflow of less than $12 million for 2025 [16] Future Outlook - The company provides 2025 revenue guidance of $39 million to $42 million [1][16] - Management expressed confidence in long-term sustainable growth due to the diversity of their catalog and custom research reagents [2]

Core Viewpoint - Alpha Teknova, Inc. is set to report its financial results for Q4 and the full year of 2024 on March 4, 2025, after market close [1] Group 1: Financial Reporting - The financial results announcement will occur on March 4, 2025, following the market close [1] - A webcast and conference call will be hosted on the same day at 5 p.m. Eastern Time for investors to access the results [2] Group 2: Company Overview - Teknova has been innovating in the manufacture of critical reagents since 1996, supporting the life sciences industry [3] - The company provides customizable solutions for various stages of the workflow, aiding in molecular diagnostics, synthetic biology, and emerging therapeutic modalities [3] - Teknova operates from a 180,000 square feet facility in Hollister, California, utilizing a modular manufacturing platform designed by experts to produce foundational ingredients for next-generation therapies [3]