Standard BioTools(LAB) - 2024 Q2 - Quarterly Report

Cash and Cash Equivalents - Cash and cash equivalents increased to $269.8 million as of June 30, 2024, compared to$51.7 million as of December 31, 2023[10] - Total cash, cash equivalents, and restricted cash stood at $271.1 million as of June 30, 2024, with$269.8 million in cash and cash equivalents and $1.3 million in restricted cash[64] Total Current Assets - Total current assets rose to$480.0 million as of June 30, 2024, up from $158.2 million as of December 31, 2023[10] Accounts Receivable - Accounts receivable, net increased to$32.4 million as of June 30, 2024, compared to $19.7 million as of December 31, 2023[10] - Accounts receivable, net, amounted to$32.4 million as of June 30, 2024, with trade receivables at $28.1 million and royalty receivable at$4.8 million[65] Inventory - Inventory grew to $42.6 million as of June 30, 2024, up from$20.5 million as of December 31, 2023[10] - Inventory totaled $58.9 million as of June 30, 2024, with raw materials at$49.3 million, work-in-process at $0.6 million, and finished goods at$9.0 million[66] Total Liabilities - Total liabilities increased to $198.5 million as of June 30, 2024, compared to$159.9 million as of December 31, 2023[10] Stockholders' Equity - Stockholders' equity improved to $510.3 million as of June 30, 2024, from a deficit of$148.1 million as of December 31, 2023[10] - Total stockholders' equity (deficit) as of June 30, 2024, stood at $510.261 million[14] - Total stockholders' equity (deficit) as of June 30, 2023, was$(113.387) million[15] Additional Paid-in Capital - Additional paid-in capital surged to $1,682.5 million as of June 30, 2024, up from$860.8 million as of December 31, 2023[10] Accumulated Deficit - Accumulated deficit increased to $1,124.6 million as of June 30, 2024, compared to$1,000.8 million as of December 31, 2023[10] Deferred Revenue - Deferred revenue, non-current rose to $33.4 million as of June 30, 2024, up from$3.5 million as of December 31, 2023[10] - Deferred revenue at June 30, 2024, totaled $48.5 million, with$2.3 million from NEC, $30.0 million from Illumina, and$16.2 million from other sources[59] Acquired Intangible Assets - Acquired intangible assets, net increased to $24.1 million as of June 30, 2024, compared to$1.4 million as of December 31, 2023[10] - Acquired intangible assets, net, amounted to $24.1 million as of June 30, 2024, with developed technology accounting for$18.9 million of the total[62] - Future expected amortization expense of acquired intangible assets is projected to be $24.1 million, with$1.4 million in the remainder of 2024 and $11.3 million thereafter[63] Revenue - Total revenue for Q2 2024 increased to$37.205 million, up 34.5% from $27.666 million in Q2 2023[11] - Services revenue surged to$14.053 million in Q2 2024, a 141.5% increase from $5.821 million in Q2 2023[11] - Revenue for Q2 2024 was$37.2 million, a 34.5% increase from $27.7 million in Q2 2023, driven by growth in product and service revenue[53] - Product revenue for Q2 2024 was$22.2 million, with SomaScan® assay kits contributing $6.3 million, while service revenue reached$14.1 million, primarily from assay services[53] - Geographic revenue breakdown for Q2 2024: Americas $19.8 million, EMEA$10.5 million, and Asia-Pacific $6.8 million, showing significant growth in the Americas region[53] - Total revenue for the six months ended June 30, 2024, was$82.7 million, with Proteomics contributing $64.4 million and Genomics contributing$18.4 million[110] Net Loss - Net loss for Q2 2024 widened to $45.718 million, compared to$17.040 million in Q2 2023[11] - Comprehensive loss for Q2 2024 was $45.426 million, compared to$17.263 million in Q2 2023[13] - Net loss for the six months ended June 30, 2024, was $77.875 million, compared to$33.883 million for the same period in 2023[16] - Net loss per share for the six months ended June 30, 2024, was $(0.37), compared to$(0.43) in the same period in 2023[103] Research and Development Expenses - Research and development expenses rose to $19.222 million in Q2 2024, a 210.9$6.184 million in Q2 2023[11] Stock-Based Compensation - Stock-based compensation expense for Q2 2024 was $6.730 million[14] - Stock-based compensation expense for the six months ended June 30, 2024, was$18.341 million, compared to $6.262 million for the same period in 2023[16] - Stock-based compensation expense for the six months ended June 30, 2024, was$6.2 million due to the acceleration of awards for certain SomaLogic executives[97] - Stock-based compensation expense for the six months ended June 30, 2024, totaled $18.3 million, a significant increase from$6.3 million in the same period in 2023[101] Repurchase of Common Stock - Repurchase of common stock in Q2 2024 amounted to $29.439 million[14] - Repurchase of common stock for the six months ended June 30, 2024, amounted to$40.490 million, compared to $4.841 million for the same period in 2023[16] - The company repurchased 13,603,617 shares of common stock for$36.1 million under the 2024 Share Repurchase Program[94] - The company repurchased 15,448,533 shares of common stock during the six months ended June 30, 2024, compared to 2,458,684 shares in the same period in 2023[105] Merger and Acquisition - The Company completed the merger with SomaLogic on January 5, 2024, exchanging each share of SomaLogic common stock for 1.11 shares of the Company's common stock[18] - Merger consideration included 26,367 shares of common stock issued to a related party[14] - Cash and restricted cash acquired in the Merger amounted to $280.033 million[16] - The merger consideration totaled approximately$444.2 million, including $419.2 million in fair value of common stock issued and$26.9 million in replacement equity awards[42] - Total consideration for the SomaLogic merger was $444.2 million, with total assets acquired valued at$533.3 million and liabilities assumed at $63.9 million, resulting in a bargain purchase gain of$25.2 million[44] - SomaLogic contributed $38.6 million in revenue and a$29.0 million loss for the period from January 6, 2024, to June 30, 2024, and $14.7 million in revenue with a$13.7 million loss for Q2 2024[52] Fair Value Measurements - Fair value measurements are categorized into three levels: Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (unobservable inputs requiring significant judgment)[24] - Total assets measured at fair value as of June 30, 2024 were $158.607 million, including$33.705 million in money market funds and $124.902 million in U.S. treasury securities[87] - Total assets measured at fair value as of December 31, 2023 were$98.576 million, including $35.385 million in money market funds and$63.191 million in U.S. treasury securities[88] - Total available-for-sale securities as of June 30, 2024, amounted to $158.654 million, with unrealized losses of$47 thousand[89] - The fair value of warrant liabilities decreased from $906 thousand to$453 thousand as of June 30, 2024[90] - Warrant liabilities were valued using a binomial lattice model with a volatility of 70.2% and a risk-free rate of 4.62% as of June 30, 2024[91] Restructuring and Related Charges - Restructuring and related charges include employee separation costs, contract termination costs, and other costs associated with implementing restructuring plans[22] - Restructuring charges for the six months ended June 30, 2024, amounted to $10.0 million, primarily due to workforce reduction and integration costs[112] - The company reduced its workforce by approximately 10$5,749 thousand, compared to $2,267 thousand in the same period in 2023[114] - Corporate expenses for restructuring were$5,749 thousand in Q2 2024, up from $1,829 thousand in Q2 2023[114] - Total restructuring and related charges for the six months ended June 30, 2024, were$10,033 thousand, compared to $3,417 thousand in the same period in 2023[114] Property and Equipment - Property and equipment, net, amounted to$42.6 million as of June 30, 2024, with laboratory and manufacturing equipment accounting for $58.7 million of the gross value[68] Accrued Liabilities - Accrued liabilities totaled$31.9 million as of June 30, 2024, with accrued compensation and related benefits at $14.0 million and accrued restructuring at$3.7 million[69] Lease Obligations - Total lease cost for six months ended June 30, 2024 was $5.539 million, including$5.098 million in operating lease costs and $2.593 million in variable lease costs[77] - Undiscounted lease payment maturities total$48.226 million, with present value of future minimum lease payments at $35.468 million[78] - Weighted average remaining lease term is 5.3 years with a weighted average discount rate of 11.9$18.5 million as of June 30, 2024, including $6.9 million related to the Illumina Agreement[80] Litigation Settlement - Company settled litigation with former SomaLogic stockholders for$6.2 million, including repurchase of 1.84 million shares at $2.40 per share[85] Stock Issuance and Repurchase - The company exchanged 255,559 shares of Series B Preferred Stock for 92,930,553 shares of common stock, resulting in a$46.0 million difference recognized in accumulated deficit[92][93] - As of June 30, 2024, the company had reserved 42,306 thousand shares of common stock for future issuance under equity compensation plans[95] - The total intrinsic value of options exercised during the six months ended June 30, 2024, was $0.3 million[99] - Aggregate unrecognized compensation costs related to outstanding unvested options were$27.2 million as of June 30, 2024[99] - Performance-based restricted stock units (PSUs) granted in July 2023 vested in April 2024, with 309,000 units at a weighted-average fair value of $2.42 per unit[100] Income Tax - The company recorded income tax expense of$0.2 million for the six months ended June 30, 2024, a decrease from $0.6 million in the same period in 2023[106] - The company's effective tax rate differs from the 21$9.1 million, with Proteomics accounting for $5.3 million and Genomics for$747,000[111] Warrant Liabilities - The company assumed warrant liabilities totaling 5,519,991 Public Warrants and 5,013,333 Private Placement Warrants, classified as liabilities on the balance sheet[37] Licensing Agreements - The Illumina Agreement includes a $30.5 million transaction price and$124.5 million in minimum guaranteed royalties, with $30.4 million allocated to a material right for SOMAmer reagent purchases[54][55] - The adjusted transaction price for the Illumina Agreement is$158.4 million, with $127.9 million in expected royalties from 2025 to 2032[56] - The NEC joint development agreement includes$2.3 million in deferred revenue, expected to be fully recognized by March 31, 2025[57] - The New England Biolabs licensing agreement guarantees $8.9 million in fixed minimum royalties through September 2025, with$8.2 million in royalties receivable as of June 30, 2024[58] - Expected revenue from unfulfilled performance obligations is $20.6 million, with$8.1 million expected in the remainder of 2024, $7.7 million in 2025,$3.3 million in 2026, and $1.5 million thereafter[60] Business Combinations - Business combinations are accounted for using the acquisition method, with identifiable assets and liabilities measured at fair value, and any excess purchase price recognized as goodwill[25] Software Development Costs - Software development costs for internal-use software are capitalized during the application development stages and amortized over the estimated useful life, typically three years[26] - Capitalized software costs for products to be sold are amortized over three years using the straight-line method, with ongoing assessments of recoverability based on anticipated future revenues[28] Revenue Recognition - Revenue is recognized when control of goods or services is transferred to the customer, with transaction price allocated based on relative standalone selling prices (SSP)[29] - Product revenue is recognized at the point of shipment or arrival at the customer's facility, with no unilateral right of return for customers[31] - Service revenue from SomaScan® assays is recognized when the analysis data or report is delivered to the customer, with no volume discounts or refunds[32] - Collaboration revenue is recognized as the company satisfies its obligations, with payments for research and development activities analogized to ASC 606[34] Shareholder Transactions - Eli Casdin received 3,807 shares of common stock, 3,807 restricted stock units, and 144,088 options in connection with the Merger[115] - Casdin Partners Master Fund, L.P. and Casdin Private Growth Equity Fund, L.P. received 11,246,525 and 2,744,219 shares of common stock, respectively, in the Merger[115] - CMLS Holdings II LLC received 7,548,000 shares of common stock and warrants to receive 4,824,802 shares upon exercise in the Merger[115] - Eli Casdin may be deemed to have beneficially received 26,515,248 shares of common stock in the Merger, including shares issuable upon vesting of RSUs and exercise of options and warrants[116] - On March 18, 2024, Casdin and its affiliates converted Series B-1 Preferred Stock into 46,465,458 shares of the Company's common stock[116]