AbCellera Biologics(US:ABCL)2021-11-09 16:00Financial Performance - Total revenue for the three months ended September 30, 2021, was $5,508,000, compared to $9,362,000 for the same period in 2020, representing a decrease of 41%[14]. - Total revenue for the nine months ended September 30, 2021, was $235,872 thousand, a significant increase compared to $25,247 thousand for the same period in 2020[14]. - Net loss for the three months ended September 30, 2021, was $(21,380,000), compared to a net loss of $(2,693,000) for the same period in 2020[14]. - Net income for the nine months ended September 30, 2021, was $93,516 thousand, a significant increase from $1,917 thousand for the same period in 2020[21]. - The company reported a net loss of $(21,380) thousand for the nine months ended September 30, 2021, compared to a net loss of $(2,693) thousand for the same period in 2020[21]. Assets and Liabilities - Total assets increased from $1,005,536 thousand on December 31, 2020, to $1,172,732 thousand on September 30, 2021, reflecting a growth of approximately 16.6%[11]. - Cash, cash equivalents, and marketable securities rose from $594,116 thousand to $753,479 thousand, an increase of about 26.9%[11]. - Total current liabilities decreased significantly from $103,490 thousand to $49,549 thousand, a reduction of approximately 52.2%[11]. - Shareholders' equity grew from $830,508 thousand to $953,397 thousand, representing an increase of around 14.8%[11]. - The outstanding accounts payable and other liabilities increased to $24.1 million as of September 30, 2021, up from $20.2 million as of December 31, 2020[46]. Research and Development - The company has invested in enhancing its antibody discovery platform, which is expected to impact future revenue and operating results[6]. - Research and development expenses for the three months ended September 30, 2021, were $17,450,000, compared to $7,495,000 for the same period in 2020, reflecting a 133% increase[14]. - The company expensed approximately $23.6 million related to research and development and regulatory milestone payments during the nine months ended September 30, 2021[72]. - The company has invested in research and development efforts to enhance its antibody discovery platform, which may affect operating results[6]. Stock and Equity - Basic net earnings per share for the nine months ended September 30, 2021, was $0.34, compared to $0.01 for the same period in 2020[14]. - The company has excluded 44,848,480 potential common shares from the computation of diluted net earnings per share for the three months ended September 30, 2021, due to their anti-dilutive effect[34]. - Stock-based compensation increased to $21,608 thousand for the nine months ended September 30, 2021, up from $3,775 thousand in the same period in 2020[21]. - Stock-based compensation expense for the three months ended September 30, 2021, was $7,707,000, compared to $1,933,000 for the same period in 2020[54]. Business Operations and Risks - The company relies on a limited number of partners for revenue, indicating potential risks if any partnerships are lost[5]. - The company has identified a material weakness in internal control over financial reporting, which may affect future financial statements[7]. - The life sciences and biotech platform technology market is highly competitive, posing challenges for revenue growth and profitability[6]. - Future success is contingent on the ability to retain key executives and attract qualified personnel[7]. Acquisitions and Investments - The Company completed a business combination with TetraGenetics on September 10, 2021, for an upfront cash consideration of $12.5 million, with potential milestone payments up to $37.5 million[78]. - The estimated fair value of the total consideration for the TetraGenetics acquisition is $48.0 million, which includes $12.9 million in closing consideration and $35.1 million in contingent consideration[80]. - The fair value of intangible assets acquired from TetraGenetics is estimated at $41.1 million, with $8.9 million attributed to technology and $32.2 million to in-process research and development (IPR&D)[87]. - The company has made equity investments of $19.8 million in the Dayhu joint venture and $12.6 million in the Beedie joint venture as of September 30, 2021[42].