Twist Bioscience(TWST) - 2021 Q2 - Quarterly Report

Forward-looking statements This section outlines future expectations for product development, market expansion, and financial performance, and related risks - Forward-looking statements relate to product development, DNA data storage, market penetration, international expansion, and identification of antibody candidates for COVID-19 treatment[9] - Key risks include the company's ability to increase revenue and growth rate, estimate capital requirements, increase DNA production, manage growth, enter new markets, protect intellectual property, and the effects of increased competition and catastrophic events like COVID-19[10] - The company undertakes no obligation to update any forward-looking statements, and actual results may differ materially from disclosed plans, intentions, or expectations[12] PART I. Financial information This part presents comprehensive financial data, including statements, notes, management's analysis, market risks, and internal controls Item 1. Financial statements This section provides the unaudited condensed consolidated financial statements, including the balance sheets, statements of operations and comprehensive loss, statements of stockholders' equity, and statements of cash flows, accompanied by detailed notes explaining significant accounting policies and specific financial components Condensed Consolidated Balance Sheets (unaudited) This section presents the company's financial position, detailing assets, liabilities, and equity at specific points in time | (In thousands) | March 31, 2021 | September 30, 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | $399,329 | $93,667 | | Short-term investments | $156,329 | $196,335 | | Total current assets | $607,999 | $334,870 | | Total assets | $677,289 | $398,882 | | Total current liabilities | $40,442 | $36,029 | | Total liabilities | $63,108 | $62,620 | | Total stockholders' equity | $614,181 | $336,262 | Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) This section details the company's revenues, expenses, and net loss over specific interim periods | (In thousands, except per share data) | Three months ended March 31, 2021 | Three months ended March 31, 2020 | Six months ended March 31, 2021 | Six months ended March 31, 2020 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $31,204 | $19,297 | $59,364 | $36,461 | | Cost of revenues | $19,028 | $13,564 | $37,190 | $27,356 | | Research and development | $15,791 | $10,629 | $29,791 | $20,926 | | Selling, general and administrative | $34,389 | $27,190 | $63,181 | $53,595 | | Loss from operations | $(38,004) | $(32,086) | $(70,798) | $(87,916) | | Net loss attributable to common stockholders | $(37,919) | $(31,768) | $(70,819) | $(87,406) | | Net loss per share (basic and diluted) | $(0.78) | $(0.85) | $(1.50) | $(2.49) | Condensed Consolidated Statements of Stockholders' Equity (Unaudited) This section outlines changes in the company's equity components, including capital and accumulated deficit, over time | (In thousands) | Balances as of Dec 31, 2020 | Balances as of March 31, 2021 | | :--- | :--- | :--- | | Additional paid-in capital | $1,129,165 | $1,143,265 | | Accumulated deficit | $(491,355) | $(529,274) | | Total stockholders' equity | $637,952 | $614,181 | - Additional paid-in capital increased by $14.1 million from December 31, 2020, to March 31, 2021, primarily due to stock-based compensation and exercise of stock options[21] - Accumulated deficit increased by $37.9 million due to the net loss for the period[21] Condensed Consolidated Statements of Cash Flows (unaudited) This section presents the cash inflows and outflows from operating, investing, and financing activities | (in thousands) | Six months ended March 31, 2021 | Six months ended March 31, 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | $(49,481) | $(93,585) | | Net cash provided by investing activities | $27,669 | $41,168 | | Net cash provided by financing activities | $328,372 | $190,094 | | Net increase in cash, cash equivalents, and restricted cash | $306,613 | $137,659 | | Cash, cash equivalents, and restricted cash at end of period | $400,859 | $185,057 | Notes to Unaudited Condensed Consolidated Financial Statements This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements 1. The Company This note describes the company's business, financial history, and management's assessment of its liquidity - Twist Bioscience Corporation, incorporated on February 4, 2013, is a synthetic biology and genomics company utilizing a disruptive DNA synthesis platform for various applications[25] - The company has incurred net losses and negative cash flows from operations since inception, with an accumulated deficit of $529.3 million as of March 31, 2021, and expects continued losses due to investments in product development, manufacturing, and sales/marketing[26] - Management believes existing cash balances combined with $1,063.9 million in net proceeds from equity issuances will fund operations for at least one year, but additional financing may be required[27] 2. Summary of significant accounting policies This note outlines the key accounting principles and methods used in preparing the financial statements - The unaudited condensed consolidated financial statements are prepared in accordance with GAAP for interim financial information, with certain disclosures condensed or omitted, and should be read in conjunction with the audited annual consolidated financial statements in the Form 10-K[30] | (in thousands) | March 31, 2021 | September 30, 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | $399,329 | $93,667 | | Restricted cash, non-current | $1,530 | $579 | | Total cash, cash equivalents and restricted cash | $400,859 | $94,246 | - The company adopted Topic 842 (Leases) on October 1, 2019, using a modified retrospective approach, which materially affected the balance sheets by recognizing operating lease right-of-use assets ($35.8 million) and corresponding lease liabilities ($34.3 million), but did not materially affect the statements of operations[37][38] 3. Fair value measurement This note details the methodologies and hierarchy used to determine the fair value of financial instruments - The company assesses the fair value of financial instruments based on ASC 820, utilizing a three-level hierarchy (Level 1: quoted prices in active markets, Level 2: observable inputs other than Level 1, Level 3: unobservable inputs) to maximize observable inputs[48][49][50][51] | (in thousands) | March 31, 2021 Fair Value | September 30, 2020 Fair Value | | :--- | :--- | :--- | | Cash | $33,515 | $20,254 | | Money market funds | $365,814 | $73,413 | | Commercial paper | $74,958 | $94,840 | | U.S. government treasury bills | $81,371 | $101,495 | | Totals | $555,658 | $290,002 | 4. Balance sheet components This note provides a breakdown of specific asset and liability