Teknova(TKNO) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION This section presents Alpha Teknova's unaudited condensed financial statements and management's analysis for Q2 2025 Item 1. Condensed Financial Statements (Unaudited) Unaudited condensed financial statements for Alpha Teknova for Q2 2025, detailing operations, balance sheets, equity, cash flows, and notes Condensed Statements of Operations (Unaudited) - Key Figures (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Revenue | $10,287 | $9,614 | $20,082 | $18,904 | | Gross profit | $3,984 | $2,804 | $6,991 | $5,013 | | Loss from operations | $(3,386) | $(5,100) | $(8,350) | $(13,086) | | Net loss | $(3,570) | $(5,364) | $(8,215) | $(13,461) | | Net loss per share—basic and diluted | $(0.07) | $(0.13) | $(0.15) | $(0.33) | Condensed Balance Sheets (Unaudited) - Key Figures (in thousands) | Metric | As of June 30, 2025 | As of December 31, 2024 | | :-------------------------------- | :------------------ | :---------------------- | | Total current assets | $38,057 | $42,776 | | Total assets | $110,487 | $118,769 | | Total current liabilities | $6,478 | $11,211 | | Total liabilities | $34,430 | $36,375 | | Total stockholders' equity | $76,057 | $82,394 | Condensed Statements of Cash Flows (Unaudited) - Key Figures (in thousands) | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | | Net cash used in operating activities | $(6,204) | $(9,396) | | Net cash provided by (used in) investing activities | $5,852 | $(102) | | Net cash used in financing activities | $(80) | $(390) | | Change in cash and cash equivalents | $(432) | $(9,888) | | Cash and cash equivalents at end of period | $3,276 | $18,596 | Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Alpha Teknova's financial condition and results, focusing on revenue growth, profitability, liquidity, and economic impacts for the periods ended June 30, 2025 - Alpha Teknova manufactures critical reagents for life sciences, serving approximately 3,000 customers across various sectors with proprietary, high-quality, custom products[83] - The company operates in Lab Essentials and Clinical Solutions categories, offering diverse reagents and is ISO 13485:2016 certified for diagnostic and therapeutic applications[84][85] Revenue Performance (in thousands) | Period | 2025 Revenue | 2024 Revenue | $ Change | % Change | | :-------------------------------- | :----------- | :----------- | :------- | :------- | | Three Months Ended June 30 | $10,287 | $9,614 | $673 | 7.0% | | Six Months Ended June 30 | $20,082 | $18,904 | $1,178 | 6.2% | Operating Loss Improvement (in thousands) | Period | 2025 Operating Loss | 2024 Operating Loss | $ Change | % Change | | :-------------------------------- | :------------------ | :------------------ | :------- | :------- | | Three Months Ended June 30 | $(3,386) | $(5,100) | $1,714 | (33.6)% | | Six Months Ended June 30 | $(8,350) | $(13,086) | $4,736 | (36.2)% | Item 3. Quantitative and Qualitative Disclosures About Market Risk As a smaller reporting company, Alpha Teknova is exempt from providing quantitative and qualitative disclosures about market risk - Alpha Teknova, as a smaller reporting company, is exempt from providing quantitative and qualitative market risk disclosures[133] Item 4. Controls and Procedures Management, including the CEO and CFO, evaluated and concluded Alpha Teknova's disclosure controls were effective as of June 30, 2025, with no material changes - Disclosure controls and procedures were evaluated by management, including the CEO and CFO, and deemed effective as of June 30, 2025[134] - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025[135] - Management acknowledges controls provide reasonable assurance due to inherent limitations and resource constraints[136] PART II. OTHER INFORMATION This section covers Alpha Teknova's legal proceedings, risk factors, equity security sales, defaults, mine safety, other information, and exhibits Item 1. Legal Proceedings Alpha Teknova is not currently involved in material legal proceedings, though a prior labor law claim was settled for $0.4 million in April 2025 - Alpha Teknova is not currently involved in any material legal proceedings[138] - The company evaluates potential legal claims and establishes loss provisions for probable and estimable losses[138] - A labor law claim from August 2023 was settled for $0.4 million, receiving final court approval in April 2025[78] Item 1A. Risk Factors This section updates risk factors, highlighting Alpha Teknova's history of operating losses and the potential for stock price decline from affiliate share sales - Alpha Teknova has a history of operating losses, reporting net losses of $3.6 million and $8.2 million for the three and six months ended June 30, 2025, respectively[141] - Profitability depends on revenue growth offsetting increasing operating expenses, including public company costs[141] - Sales of a substantial number of common stock shares by affiliates could significantly reduce market price and hinder future fundraising[142][143][144] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds Alpha Teknova reports no unregistered equity sales, no applicable IPO proceeds use, and no share repurchases during the period - No unregistered sales of equity securities occurred[146] - Information regarding the use of proceeds from the initial public offering is not applicable[147] - No common stock repurchases were made[148] Item 3. Defaults Upon Senior Securities Alpha Teknova reports no defaults upon senior securities - There were no defaults upon senior securities[149] Item 4. Mine Safety Disclosures Mine safety disclosures are not applicable to Alpha Teknova's operations - Mine safety disclosures are not applicable[150] Item 5. Other Information No officers or directors adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No officers or directors adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025[151] Item 6. Exhibits This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, credit agreements, and executive certifications - Exhibits include corporate governance documents, investors' rights agreements, and credit and security agreements (Term Loan and Revolving Loan)[152](index=152&type=