AbCellera Biologics(ABCL) - 2023 Q3 - Quarterly Report

Financial Performance - Total revenue for the three months ended September 30, 2023, was $6.6 million, a significant decrease from $101.4 million in the same period of 2022, representing a decline of approximately 93.5%[11] - The company reported a net loss of $28.6 million for the three months ended September 30, 2023, compared to a net income of $26.6 million in the same period of 2022, indicating a shift of approximately $55.2 million[11] - For the nine months ended September 30, 2023, the net loss was $99,248 thousand, compared to a net earnings of $188,412 thousand for the same period in 2022[16] - For the three months ended September 30, 2023, the company reported a net loss attributable to common shareholders of $28,610,000, resulting in a basic net loss per share of $(0.10) compared to net earnings of $26,624,000 and $0.09 per share for the same period in 2022[27][28] - For the nine months ended September 30, 2023, the company experienced a net loss of $99,248,000, translating to a basic net loss per share of $(0.34), compared to net earnings of $188,412,000 and $0.66 per share for the same period in 2022[27][28] Expenses - Research and development expenses for the three months ended September 30, 2023, increased to $37.9 million from $26.6 million in the same period of 2022, reflecting a rise of about 42.5%[11] - The company’s total operating expenses for the three months ended September 30, 2023, were $61.5 million, a slight decrease from $63.6 million in the same period of 2022, indicating a reduction of approximately 3.3%[11] - Stock-based compensation expense for the three months ended September 30, 2023, was $15.9 million, up from $11.8 million for the same period in 2022, representing a 34.8% increase[49] - The company reported stock-based compensation of $47,735 thousand for the nine months ended September 30, 2023, an increase from $36,158 thousand in the same period of 2022[16] Assets and Liabilities - Total cash, cash equivalents, and marketable securities decreased to $785.8 million as of September 30, 2023, down from $886.5 million as of December 31, 2022, a decline of about 11.4%[10] - Total current assets decreased to $919.5 million as of September 30, 2023, compared to $1,025.5 million as of December 31, 2022, representing a decrease of approximately 10.3%[10] - Total liabilities increased to $329.4 million as of September 30, 2023, up from $307.6 million as of December 31, 2022, reflecting an increase of about 7.0%[10] - The company’s total assets as of September 30, 2023, were $1.5 billion, a decrease from $1.54 billion as of December 31, 2022, representing a decline of about 1.5%[10] - The company’s total shareholders' equity as of September 30, 2023, was $1,182,775 thousand, down from $1,233,277 thousand as of December 31, 2022[14] - The accumulated earnings decreased to $326,937 thousand as of September 30, 2023, from $426,185 thousand as of December 31, 2022[14] Cash Flow - Cash provided by operating activities was negative at $24,266 thousand for the nine months ended September 30, 2023, a significant decline from $246,448 thousand in the prior year[16] - The company experienced a decrease in cash and cash equivalents of $214,939 thousand for the nine months ended September 30, 2023[16] - Total cash, cash equivalents, and restricted cash at the end of the period was $197,422 thousand, down from $396,973 thousand at the beginning of the period[16] Marketable Securities and Investments - The company’s marketable securities totaled $613.4 million as of September 30, 2023, with a weighted average life of approximately 0.5 years[57] - The company held non-marketable securities valued at $32.3 million as of September 30, 2023, up from $18.5 million as of December 31, 2022[52] - Purchases of marketable securities amounted to $744,674 thousand for the nine months ended September 30, 2023, compared to $670,430 thousand in the prior year[16] Commitments and Contingencies - The company has commitments for joint ventures, including a loan of up to CAD $82.7 million ($60.9 million) to the Dayhu JV, with an outstanding balance of $38.1 million as of December 31, 2022, reduced to nil by September 30, 2023[35][36] - The company has also committed to a land loan of up to CAD $7.5 million ($5.5 million) for the Beedie JV, with the loan receivable balance recorded as of September 30, 2023[40] - The company’s total liabilities included accrued royalties payable of $16,253 thousand for the nine months ended September 30, 2023[16] Funding and Grants - The company recognized $17.3 million in federal funding for the quarter ended September 30, 2023, of which $12.9 million is repayable[63] - The company has claimed $10.2 million under provincial funding for capital asset expenditures for the quarter ended September 30, 2023[65] Other Information - The company aims to enhance its antibody drug discovery and development capabilities through partnerships with various biotechnology and pharmaceutical companies[20] - The company has recorded a gross carrying amount of intangible assets totaling $155,143,000 as of September 30, 2023, with a net book value of $124,076,000 after accumulated amortization of $31,067,000[32] - The company’s amortization expense on intangible assets is estimated to be $24,651,000 over the next five years, with $7,463,000 expected in 2024[33] - The company’s stock option activity shows a decrease in outstanding options from 33,694,150 as of December 31, 2022, to 31,493,273 as of September 30, 2023, with a weighted average exercise price of $0.93[44] - The fair value of contingent consideration liabilities increased to $36.1 million for TetraGenetics and $23.1 million for Trianni as of September 30, 2023[54] - The total deferred revenue as of September 30, 2023, was $33.9 million, compared to $41.1 million as of December 31, 2022[50] - The company incurred $102.0 million in expenditures related to the Canadian government's Strategic Innovation Fund, with $46.1 million allocated to phase 1 and $55.9 million to phase 2[61] - The company's exposure to market risk has not changed materially since the annual report for the year ended December 31, 2022[119]