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]

Alpha Teknova, Inc. (NASDAQ:TKNO) Q4 2024 Earnings Call March 4, 2025 5:00 PM ET Company Participants Jennifer Henry - Senior Vice President, Marketing Stephen Gunstream - President and Chief Executive Officer Matt Lowell - Chief Financial Officer Conference Call Participants Matt Larew - William Blair Matthew Parisi - KeyBanc Capital Markets Mark Massaro - BTIG Matt Hewitt - Craig-Hallum Operator Thank you for standing by, and welcome to Alpha Teknova, Inc.'s Fourth Quarter and Full Year 2024 Earnings Conf ...

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]

Financial Data and Key Metrics Changes - The company reported a 17% revenue growth in Q3 2024 compared to the same period last year, with total revenue reaching $9.6 million, up from $8.2 million in Q3 2023 [6][13] - Free cash outflow was $2.4 million, the lowest level in over three years, reflecting improved cost management [6][22] - Gross profit for Q3 2024 was $0.1 million, with a gross margin of 0.9%, down from 18.0% in Q3 2023, primarily due to a $2.8 million non-recurring non-cash charge [17][18] - Net loss for Q3 2024 was $7.6 million or $0.15 per diluted share, compared to a net loss of $10.2 million or $0.34 per diluted share in Q3 2023 [20] Business Line Data and Key Metrics Changes - Lab Essentials revenue was $7.2 million in Q3 2024, a 2% decrease from $7.3 million in Q3 2023, attributed to lower average revenue per customer [14] - Clinical Solutions revenue surged to $2.0 million, a 229% increase from $0.6 million in Q3 2023, driven by an increased number of customers [15][16] Market Data and Key Metrics Changes - The biopharma market is stabilizing, with expectations of modest growth in 2025 despite some customers rationalizing their clinical pipelines [7][11] - The number of active clinical customers increased in Q3 2024, indicating potential for increased annual spending as therapies move closer to commercialization [8] Company Strategy and Development Direction - The company aims for sustainable above-market growth, supported by a strong pipeline of clinical customers and operational improvements [11] - The infrastructure is in place to support up to approximately $200 million in revenue, with a focus on cost management and operational efficiency [11][10] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term growth goals, citing a stabilized market environment and a diverse customer base [11][29] - The company anticipates a revenue guidance of $35 million to $38 million for 2024, with expectations of a slight decline in Q4 due to fewer business days and a canceled order [24][25] Other Important Information - The company has reduced operating expenses by more than $9 million on an annualized basis since the end of 2023, achieving the lowest operating expenses since its IPO [10][19] - As of September 30, 2024, the company had $31.7 million in cash and equivalents, with $12.1 million in gross debt [23] Q&A Session Summary Question: Update on Express-Tek and RUO+ launches - Management reported positive engagement and execution on Express-Tek and RUO+, with no significant additional investment needed in sales and marketing [31][34] Question: Future write-downs and inventory management - Management does not anticipate future write-downs and has implemented new inventory management rules to better control stock levels [35][36] Question: Trends in cell and gene therapy customers - Management noted no significant differences in trends between cell and gene therapy and other biotech customers, with overall market stabilization [39][40] Question: Product portfolio and future developments - Management indicated ongoing development of service-related products and potential for new offerings based on customer needs, with a focus on short-term investments [42][43] Question: Acceleration in 2025 growth - Management expects modest growth in 2025, aiming to return to historical growth rates by 2026, contingent on market conditions [48][49] Question: Gross margin improvement strategies - Management highlighted potential for significant gross margin improvement through revenue growth and operational efficiencies [50][51] Question: Customer engagement and competitive landscape - Management observed improved customer engagement and a stable competitive environment, with ongoing efforts to increase customer acquisition [68][69]

Financial Performance - Revenue for the three months ended September 30, 2024, was $9,576 thousand, an increase of 17.2% compared to $8,169 thousand for the same period in 2023[15] - Gross profit for the three months ended September 30, 2024, was $90 thousand, a significant decrease from $1,472 thousand in the same period last year[15] - Net loss for the three months ended September 30, 2024, was $(7,565) thousand, an improvement from $(10,153) thousand for the same period in 2023[15] - Net loss for the nine months ended September 30, 2024, was $21.0 million, an improvement from a net loss of $26.1 million for the same period in 2023[24] - The company reported an operating loss of $7.4 million for the three months ended September 30, 2024, compared to an operating loss of $8.8 million for the same period in 2023[101] - The company incurred net losses of $7.6 million and $21.0 million for the three and nine months ended September 30, 2024, respectively, with an accumulated deficit of $112.8 million as of the same date[136] Cash Flow and Liquidity - Cash and cash equivalents decreased to $6,145 thousand as of September 30, 2024, from $28,484 thousand as of December 31, 2023[17] - Cash used in operating activities decreased to $11.5 million from $15.9 million year-over-year[24] - Cash provided by financing activities increased to $15.0 million compared to $13.4 million in the previous year[24] - As of September 30, 2024, cash, cash equivalents, and restricted cash totaled $6.1 million, down from $32.1 million at the end of the previous year[24] - Net cash used in operating activities was $11.5 million for the nine months ended September 30, 2024, primarily due to a net loss of $21.0 million adjusted for non-cash charges of $12.4 million[144] - Net cash provided by financing activities was $14.977 million for the nine months ended September 30, 2024, primarily from net proceeds of $15.2 million from the July 2024 Offering[148] Expenses and Cost Management - Total operating expenses for the three months ended September 30, 2024, were $7,522 thousand, down 26.5% from $10,234 thousand in the prior year[15] - Research and development expenses for the three months ended September 30, 2024, were $627 thousand, compared to $1,397 thousand in the same period last year[15] - The company incurred $1.3 million in costs related to a reduction in workforce of approximately 35 positions aimed at reducing operating expenses[36] - Total operating expenses for the nine months ended September 30, 2024, were $25.6 million, a decrease of $8.0 million or 23.9% compared to $33.7 million in 2023[127] - Sales and marketing expenses were $4.8 million, down 31.3% from $6.9 million in the prior year[128] - General and administrative expenses decreased to $17.8 million from $19.4 million, a reduction of 8.2%[129] Revenue Breakdown - Revenue from Lab Essentials for the three months ended September 30, 2024, was $7,161 thousand, compared to $7,274 thousand in 2023, reflecting a decline of 1.5%[45] - Clinical Solutions revenue increased to $1,964 thousand for the three months ended September 30, 2024, from $597 thousand in 2023, marking a significant growth of 228.5%[45] - For the nine months ended September 30, 2024, Teknova reported total revenue of $28,480 thousand, slightly down from $28,817 thousand in 2023, indicating a decrease of 1.2%[45] - Revenue from U.S. sales was $9.1 million, representing 94.6% of total revenue for the three months ended September 30, 2024, compared to $7.8 million or 95.8% in 2023[109] - Revenue from U.S. sales was $27.2 million, representing 95.3% of total revenue, compared to $27.6 million or 95.9% in 2023[124] Assets and Liabilities - Total assets as of September 30, 2024, were $124,099 thousand, down from $128,587 thousand as of December 31, 2023[17] - Total liabilities decreased to $36,831 thousand as of September 30, 2024, from $38,551 thousand as of December 31, 2023[17] - The company reported total accrued liabilities of $4,373 thousand as of September 30, 2024, down from $5,579 thousand as of December 31, 2023, a reduction of 21.6%[59] - As of September 30, 2024, total long-term debt was $13.385 million, with a net long-term debt of $10.857 million after accounting for current portions[66] Stock and Equity - The company reported a weighted average share count of 53,302,993 for the three months ended September 30, 2024[19] - The weighted average exercise price of stock options outstanding as of September 30, 2024, was $5.00, with an aggregate intrinsic value of $8.262 million[73] - The Company granted 730,100 stock options during the nine months ended September 30, 2024[73] - The Company issued 60,000 restricted stock units during the nine months ended September 30, 2024, with an aggregate intrinsic value of $618,000[76] - The Company has reserved 312,174 shares under the 2016 Stock Plan, 1,529,495 shares under the 2020 Equity Incentive Plan, and 2,265,572 shares under the 2021 Equity Incentive Plan for future issuance[169] Compliance and Risk Management - The company is in compliance with its financial covenants under the Amended Credit Agreement as of September 30, 2024, alleviating previous concerns about going concern status[32] - The minimum net revenue requirement for the twelve months ending December 31, 2024, was reduced from $42.0 million to $34.0 million[63] - The minimum cash requirement increased from $9.0 million to $10.0 million under the Amended Credit Agreement[63] - The company has not been involved in any material legal proceedings as of the report date, but acknowledges the unpredictability and potential costs associated with future legal claims[161] - The company encourages stakeholders to review the "Risk Factors" section in the 2023 Annual Report on Form 10-K for a comprehensive understanding of risks that could materially affect its business[163]