Teknova(TKNO) - 2024 Q3 - Quarterly Report

Financial Performance - Revenue for the three months ended September 30, 2024, was $9,576 thousand, an increase of 17.2$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$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$33.7 million in 2023[127] - Sales and marketing expenses were $4.8 million, down 31.3$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$7.8 million or 95.8% in 2023[109] - Revenue from U.S. sales was $27.2 million, representing 95.3$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]