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Standard BioTools(LAB) - 2024 Q3 - Quarterly Report
LABStandard BioTools(LAB)2024-11-06 22:17
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Revenue Growth and Performance - Total revenue for Q3 2024 increased to 44.969million,upfrom44.969 million, up from 25.367 million in Q3 2023, driven by growth in product and services revenue[10] - Product revenue for Q3 2024 reached 19.593million,comparedto19.593 million, compared to 18.711 million in Q3 2023, reflecting steady growth[10] - Services revenue surged to 24.438millioninQ32024,asignificantincreasefrom24.438 million in Q3 2024, a significant increase from 6.566 million in Q3 2023[10] - Revenue for the three months ended September 30, 2024 was 44.969million,comparedto44.969 million, compared to 25.367 million in the same period in 2023, representing a 77.3% increase[56][58] - Product revenue for the three months ended September 30, 2024 was 19.593million,withconsumablescontributing19.593 million, with consumables contributing 14.007 million and instruments 5.586million[58]−ServicerevenueforthethreemonthsendedSeptember30,2024was5.586 million[58] - Service revenue for the three months ended September 30, 2024 was 24.438 million, driven by 18.247millionfromlabservices[58]−RevenuefromtheAmericasregionwas18.247 million from lab services[58] - Revenue from the Americas region was 23.751 million for the three months ended September 30, 2024, representing 52.8% of total revenue[59] - Total revenue for the three months ended September 30, 2024, was 44.969million,withProteomicscontributing44.969 million, with Proteomics contributing 34.565 million and Genomics contributing 10.404million[130]−TotalrevenuefortheninemonthsendedSeptember30,2024,was10.404 million[130] - Total revenue for the nine months ended September 30, 2024, was 127.714 million, with Proteomics contributing 98.954millionandGenomicscontributing98.954 million and Genomics contributing 28.760 million[130] Profitability and Losses - Gross profit for Q3 2024 improved to 23.261million,upfrom23.261 million, up from 11.154 million in Q3 2023, indicating better cost management[10] - Net loss for Q3 2024 was 26.938million,comparedtoanetlossof26.938 million, compared to a net loss of 20.997 million in Q3 2023[10] - Comprehensive loss for Q3 2024 was 26.847million,slightlybetterthanthe26.847 million, slightly better than the 21.395 million loss in Q3 2023[12] - Net loss for the quarter ending September 30, 2024, is (26,938)[14]−NetlossforthequarterendingSeptember30,2023,is(26,938)[14] - Net loss for the quarter ending September 30, 2023, is (20,997)[15] - Net loss for the nine months ended September 30, 2024, was 104.8million,comparedto104.8 million, compared to 54.9 million in the same period in 2023[17] - Net loss for the three months ended September 30, 2024 was 26.938million,animprovementfromthe26.938 million, an improvement from the 41.204 million loss in the same period in 2023[56] - SomaLogic contributed 61.5millioninrevenueand61.5 million in revenue and 30.6 million in loss for the period from January 6, 2024 to September 30, 2024[57] - Total loss from operations for the three months ended September 30, 2024, was 31.718million,withProteomicscontributingalossof31.718 million, with Proteomics contributing a loss of 10.210 million and Genomics contributing a profit of 1.925million[130]−TotallossfromoperationsfortheninemonthsendedSeptember30,2024,was1.925 million[130] - Total loss from operations for the nine months ended September 30, 2024, was 142.419 million, with Proteomics contributing a loss of 48.485millionandGenomicscontributingaprofitof48.485 million and Genomics contributing a profit of 2.681 million[130] - Net loss per share for the nine months ended September 30, 2024: (0.44),comparedto(0.44), compared to (0.69) for the same period in 2023[123] Expenses and Investments - Research and development expenses increased to 13.156millioninQ32024,upfrom13.156 million in Q3 2024, up from 6.370 million in Q3 2023, reflecting higher investment in innovation[10] - Selling, general, and administrative expenses rose to 34.403millioninQ32024,comparedto34.403 million in Q3 2024, compared to 22.292 million in Q3 2023, due to expanded operations[10] - Transaction and integration expenses for Q3 2024 were 5.079million,upfrom5.079 million, up from 1.666 million in Q3 2023, primarily due to merger-related costs[10] - Stock-based compensation expense for the quarter ending September 30, 2024, is 5,921[14]−Stock−basedcompensationexpenseforthequarterendingSeptember30,2023,is5,921[14] - Stock-based compensation expense for the quarter ending September 30, 2023, is 3,386[15] - Stock-based compensation expense for the nine months ended September 30, 2024: 24.3million,comparedto24.3 million, compared to 9.6 million for the same period in 2023[120] - Stock-based compensation expense due to the acceleration of awards for certain SomaLogic executives in connection with the Merger: 6.2millionfortheninemonthsendedSeptember30,2024[114]−TheCompanyrecognizedrestructuringchargesof6.2 million for the nine months ended September 30, 2024[114] - The Company recognized restructuring charges of 2.3 million and 12.4millionduringthethreeandninemonthsendedSeptember30,2024,respectively,relatedtoarestructuringplanimplementedaftertheMerger[131]−TheCompany′srestructuringandrelatedliabilitiesfortheninemonthsendedSeptember30,2024,included12.4 million during the three and nine months ended September 30, 2024, respectively, related to a restructuring plan implemented after the Merger[131] - The Company's restructuring and related liabilities for the nine months ended September 30, 2024, included 9.522 million in severance and other employee-related benefits and 2.108millioninfacilitycosts[132]−IncometaxexpensefortheninemonthsendedSeptember30,2024:2.108 million in facility costs[132] - Income tax expense for the nine months ended September 30, 2024: 0.3 million, compared to 0.6millionforthesameperiodin2023[127]MergerandIntegration−ThecompanycompleteditsmergerwithSomaLogic,Inc.inJanuary2024,whichisexpectedtodrivefuturegrowthandintegrationbenefits[4]−EquityconsiderationtransferredinconnectionwiththeMergerincluded26,367sharesofcommonstock[16]−CashandrestrictedcashacquiredintheMergerwas0.6 million for the same period in 2023[127] Merger and Integration - The company completed its merger with SomaLogic, Inc. in January 2024, which is expected to drive future growth and integration benefits[4] - Equity consideration transferred in connection with the Merger included 26,367 shares of common stock[16] - Cash and restricted cash acquired in the Merger was 280.0 million[17] - Equity consideration transferred in connection with the Merger was 444.2million[17]−TheMergerwithSomaLogicresultedinatotalconsiderationof444.2 million[17] - The Merger with SomaLogic resulted in a total consideration of 444.2 million, including 419.2millionincommonstockand419.2 million in common stock and 26.9 million in replacement equity awards[45][46] - The Merger resulted in a bargain purchase gain of 25.2millionduetoarapiddeclineintheCompany′scommonstockpricepost−announcement[49]−TheCompanyreduceditsworkforcebyapproximately1025.2 million due to a rapid decline in the Company's common stock price post-announcement[49] - The Company reduced its workforce by approximately 10% of its total workforce as part of the Strategic Reorganization, with the majority of employees separating by July 2024[131] - Eli Casdin, a member of the Company's board of directors, may be deemed to have beneficially received 26,515,248 shares of common stock in the Merger, including shares issuable upon the vesting of RSUs and exercise of options and warrants[134] Cash Flow and Financial Position - Net cash used in operating activities for the nine months ended September 30, 2024, was 129.4 million, compared to 29.2millioninthesameperiodin2023[17]−NetcashprovidedbyinvestingactivitiesfortheninemonthsendedSeptember30,2024,was29.2 million in the same period in 2023[17] - Net cash provided by investing activities for the nine months ended September 30, 2024, was 337.4 million, compared to 33.4millioninthesameperiodin2023[17]−NetcashusedinfinancingactivitiesfortheninemonthsendedSeptember30,2024,was33.4 million in the same period in 2023[17] - Net cash used in financing activities for the nine months ended September 30, 2024, was 48.1 million, compared to 5.8millioninthesameperiodin2023[17]−Cash,cashequivalents,andrestrictedcashattheendoftheperiodwere5.8 million in the same period in 2023[17] - Cash, cash equivalents, and restricted cash at the end of the period were 211.9 million, compared to 80.5millionattheendofthesameperiodin2023[17]−Cash,cashequivalentsandrestrictedcashtotaled80.5 million at the end of the same period in 2023[17] - Cash, cash equivalents and restricted cash totaled 211.938 million as of September 30, 2024, up from 52.499millionatDecember31,2023[73]−Totaldebtdecreasedfrom52.499 million at December 31, 2023[73] - Total debt decreased from 63,513 thousand in December 2023 to 55,212thousandinSeptember2024,primarilyduetotherepaymentoftheTermLoanFacility[86][88]−Thecompanyreceived55,212 thousand in September 2024, primarily due to the repayment of the Term Loan Facility[86][88] - The company received 34.0 million from the NIH for COVID-19 test production capacity expansion, with 22.2millionusedforcapitalexpendituresinitsSingaporefacility[82]AssetsandLiabilities−TotalStockholders′Equity(Deficit)asofSeptember30,2024,is22.2 million used for capital expenditures in its Singapore facility[82] Assets and Liabilities - Total Stockholders' Equity (Deficit) as of September 30, 2024, is 489,333[14] - Accumulated Deficit as of September 30, 2024, is (1,151,579)[14]−TotalStockholders′Equity(Deficit)asofSeptember30,2023,is(1,151,579)[14] - Total Stockholders' Equity (Deficit) as of September 30, 2023, is (131,720)[15] - Accumulated Deficit as of September 30, 2023, is (980,976)[15]−Tradereceivablesincreasedfrom(980,976)[15] - Trade receivables increased from 19,972 thousand in December 2023 to 35,337thousandinSeptember2024,reflectingagrowthof76.935,337 thousand in September 2024, reflecting a growth of 76.9%[75] - Total inventory surged from 20,533 thousand in December 2023 to 60,593thousandinSeptember2024,a195.260,593 thousand in September 2024, a 195.2% increase, driven by raw materials growth from 12,140 thousand to 49,953thousand[76]−Thecompanyrecordedchargesforexcessandobsoleteinventoryof49,953 thousand[76] - The company recorded charges for excess and obsolete inventory of 0.1 million for the three months ended September 30, 2024, compared to 0.4millioninthesameperiodin2023[77]−Propertyandequipment,netincreasedfrom0.4 million in the same period in 2023[77] - Property and equipment, net increased from 24,187 thousand in December 2023 to 41,982thousandinSeptember2024,withlaboratoryandmanufacturingequipmentgrowingfrom41,982 thousand in September 2024, with laboratory and manufacturing equipment growing from 35,563 thousand to 59,785thousand[78]−Accruedliabilitiesrosefrom59,785 thousand[78] - Accrued liabilities rose from 21,019 thousand in December 2023 to 31,686thousandinSeptember2024,withaccruedcompensationandrelatedbenefitsincreasingfrom31,686 thousand in September 2024, with accrued compensation and related benefits increasing from 12,052 thousand to 14,390thousand[79]−Thecompanyhasopenpurchasecommitmentstotaling14,390 thousand[79] - The company has open purchase commitments totaling 16.2 million as of September 30, 2024[93] - Under the Illumina Agreement, the company has a minimum purchase commitment of 6.9millionoverthreeyearswithIDTforcontractmanufacturing[94]−Thecompanyhasenteredintoseverallicenseandpatentagreements,payingannualfeesandroyaltiesbasedonnetsales,butfuturepaymentsareindeterminableandnotexpectedtobematerialinanyyear[95]−Thecompanysettledlitigationwithformerstockholders,repurchasing1.84millionsharesat6.9 million over three years with IDT for contract manufacturing[94] - The company has entered into several license and patent agreements, paying annual fees and royalties based on net sales, but future payments are indeterminable and not expected to be material in any year[95] - The company settled litigation with former stockholders, repurchasing 1.84 million shares at 2.40 per share and paying 1.8millionincash,recognizinga1.8 million in cash, recognizing a 0.6 million litigation loss[99] - As of September 30, 2024, the company's total assets measured at fair value were 340.91million,including340.91 million, including 185.23 million in cash equivalents and 155.68millioninshort−terminvestments[101]−Thefairvalueofwarrantliabilitiesdecreasedby155.68 million in short-term investments[101] - The fair value of warrant liabilities decreased by 474,000 to 432,000asofSeptember30,2024,usingLevel3inputsforvaluation[104][105]−Thecompany′savailable−for−salesecuritieshadunrealizedgainsof432,000 as of September 30, 2024, using Level 3 inputs for valuation[104][105] - The company's available-for-sale securities had unrealized gains of 348,000 as of September 30, 2024, with no securities in an unrealized loss position for over 12 months[103] - Total common stock reserved for future issuance as of September 30, 2024: 40,228 thousand shares for options, 14,436 thousand shares for restricted stock, and 25,419 thousand shares available for future issuance[111] - Unrecognized stock-based compensation expense related to outstanding unvested RSUs as of September 30, 2024: 29.8million,expectedtoberecognizedoveraweighted−averageperiodof3.1years[115]−AggregateunrecognizedcompensationcostsrelatedtooutstandingunvestedoptionsasofSeptember30,2024:29.8 million, expected to be recognized over a weighted-average period of 3.1 years[115] - Aggregate unrecognized compensation costs related to outstanding unvested options as of September 30, 2024: 22.5 million, expected to be recognized over a weighted-average period of 2.6 years[117] - Balance of restricted stock units (RSUs) as of September 30, 2024: 14,436 thousand units, with a weighted-average fair value per unit of 2.24[115]−BalanceofstockoptionsasofSeptember30,2024:40,228thousandoptions,withaweighted−averageexercisepriceof2.24[115] - Balance of stock options as of September 30, 2024: 40,228 thousand options, with a weighted-average exercise price of 4.26 and a weighted-average remaining contractual life of 6.2 years[116] - Total intrinsic value of options exercised during the nine months ended September 30, 2024: 0.6 million[117] Revenue Recognition and Contracts - Revenue recognition is based on the transaction price, which reflects the consideration the Company expects to receive in exchange for products or services[31] - Product revenue is recognized at the point of control transfer, either at shipment or customer facility arrival, with invoices due in 30 to 60 days[34] - SomaScan® equipment bundle revenue is recognized over time based on progress toward performance obligations, using an input method of costs incurred[34] - Lab services revenue is recognized upon delivery of analysis data or reports, with SomaScan® services sold at a fixed price per sample without discounts[35] - Field services revenue is recognized over time using a time-elapsed measure, with invoices issued in advance and payments collected reported as deferred revenue[36] - Collaboration revenue is recognized as obligations are satisfied, with payments for R&D activities analogized to ASC 606[38] - License and royalty revenue is recognized when the license is transferred and the customer can benefit, with sales-based royalties recognized upon related sales[39] - Grant revenue is recognized when conditions are met and remaining performance obligations are perfunctory, not accounted for under ASC 606[40] - The Illumina Agreement has a total transaction price of 158.4 million, with 127.9millioninexpectedroyaltiesfrom2025through2032[62]−DeferredrevenueasofSeptember30,2024was127.9 million in expected royalties from 2025 through 2032[62] - Deferred revenue as of September 30, 2024 was 46.118 million, with 30.012millionrelatedtotheIlluminaAgreement[65]DepreciationandAmortization−TheCompany′stotaldepreciationandamortizationforthethreemonthsendedSeptember30,2024,was30.012 million related to the Illumina Agreement[65] Depreciation and Amortization - The Company's total depreciation and amortization for the three months ended September 30, 2024, was 3.858 million, with Proteomics contributing 1.940millionandGenomicscontributing1.940 million and Genomics contributing 378 million[130] - The Company's total depreciation and amortization for the nine months ended September 30, 2024, was 12.908million,withProteomicscontributing12.908 million, with Proteomics contributing 7.193 million and Genomics contributing 1.125million[130]−Futureexpectedamortizationexpenseofacquiredintangibleassetsis1.125 million[130] - Future expected amortization expense of acquired intangible assets is 23.367 million, with 11.280millionexpectedafter2028[72]LegalandCompliance−Thecompanymayfaceadditionalcostsandliabilitiespost−merger,includinglegalandcompliancematters,whichcouldimpactitsfinancialcondition[100]−Thecompanyresolvedfeedisputeswithallbuttwostockholders′counselregardingdemandsforbookandrecordinspections[99]ShareRepurchaseandEquityTransactions−Thecompanyrepurchased13.6millionsharesofcommonstockfor11.280 million expected after 2028[72] Legal and Compliance - The company may face additional costs and liabilities post-merger, including legal and compliance matters, which could impact its financial condition[100] - The company resolved fee disputes with all but two stockholders' counsel regarding demands for book and record inspections[99] Share Repurchase and Equity Transactions - The company repurchased 13.6 million shares of common stock for 36.1 million under the 2024 Share Repurchase Program[110] - The company exchanged Series B Preferred Stock for 92.93 million shares of common stock, resulting in a 46.0milliondifferencerecognizedinaccumulateddeficit[107][109]−Thecompanyfiledaregistrationstatementfortheresaleof105.12millionsharesofcommonstock,includingsharesfromtheSeriesBPreferredStockexchange[108]WarrantsandLiabilities−TheCompanyassumed5,519,991PublicWarrantsand5,013,333PrivatePlacementWarrants,nowidenticalandclassifiedasliabilities[41][42]−Thefairvalueofwarrantliabilitiesdecreasedby46.0 million difference recognized in accumulated deficit[107][109] - The company filed a registration statement for the resale of 105.12 million shares of common stock, including shares from the Series B Preferred Stock exchange[108] Warrants and Liabilities - The Company assumed 5,519,991 Public Warrants and 5,013,333 Private Placement Warrants, now identical and classified as liabilities[41][42] - The fair value of warrant liabilities decreased by 474,000 to 432,000asofSeptember30,2024,usingLevel3inputsforvaluation[104][105]LeaseandFacilityCosts−Leasecostsforoperatingleasesincreasedfrom432,000 as of September 30, 2024, using Level 3 inputs for valuation[104][105] Lease and Facility Costs - Lease costs for operating leases increased from 6,005 thousand for the nine months ended September 30, 2023, to $7,484 thousand for the same period in 2024[90]