GeneDx (US:WGS)2023-03-15 16:00Financial Performance - Total revenue for the year ended December 31, 2022, was $234.694 million, a 10.5% increase from $212.195 million in 2021[545]. - Diagnostic test revenue reached $227.334 million in 2022, up from $205.100 million in 2021, reflecting an increase of 10.5%[545]. - The company reported a net loss of $548.980 million for 2022, compared to a net loss of $245.390 million in 2021, indicating a significant increase in losses[545]. - Net loss for the year ended December 31, 2022, was $548.98 million, compared to a net loss of $245.39 million in 2021, representing a 123% increase in losses year-over-year[552]. - The total other income, net, was $69.620 million in 2022, a decrease from $200.759 million in 2021[545]. - The company incurred an impairment loss of $210.145 million in 2022, which was not present in 2021[545]. - The company reported a significant increase in the cost of services, totaling $261.444 million in 2022, compared to $228.797 million in 2021, reflecting a rise of 14.2%[545]. Cash and Liquidity - Cash and cash equivalents decreased from $400.6 million in 2021 to $123.9 million in 2022, a decline of approximately 69%[540]. - Cash, cash equivalents, and restricted cash at the end of 2022 were $138.30 million, down from $401.47 million at the end of 2021, indicating a decrease of 65%[553]. - Net cash used in operating activities increased to $319.16 million in 2022 from $190.43 million in 2021, reflecting a 68% increase[552]. - The company has not drawn any amounts under the SVB Agreement as of December 31, 2022, indicating a cautious approach to leveraging credit[530]. Assets and Liabilities - The company reported a total asset value of $490.9 million as of December 31, 2022, down from $554.1 million in 2021, a decrease of about 11%[540]. - Total current liabilities rose from $101.3 million in 2021 to $144.3 million in 2022, an increase of approximately 42%[540]. - The accumulated deficit increased significantly from $575.4 million in 2021 to $1.1 billion in 2022, reflecting a rise of about 95%[542]. - Total stockholders' equity decreased from $388.1 million in 2021 to $253.7 million in 2022, a decline of approximately 35%[542]. Expenses - Research and development expenses were $86.203 million in 2022, down from $105.162 million in 2021, representing a decrease of 18.0%[545]. - Selling and marketing expenses increased to $134.913 million in 2022, up from $112.738 million in 2021, marking a rise of 19.6%[545]. - Stock-based compensation expense decreased to $41.98 million in 2022 from $219.42 million in 2021, a reduction of 81%[552]. Acquisitions and Related Costs - The Company completed the Acquisition of Legacy GeneDx on April 29, 2022, paying $140.5 million in cash and issuing 80 million shares valued at $172 million[633]. - The total aggregate purchase price for the Legacy GeneDx Acquisition was $364.5 million, which includes $52.0 million in earn-out potential based on revenue milestones[634]. - The Company incurred $12.1 million in acquisition-related costs for the Legacy GeneDx Acquisition, reflected in general and administrative expenses[638]. Stock and Equity - The weighted average shares outstanding for Class A common stock increased to 337,819,680 in 2022 from 108,077,439 in 2021[545]. - Basic and diluted net loss per share for Class A common stock improved to $(1.63) in 2022 from $(2.27) in 2021[545]. - As of December 31, 2022, there were 388,511,138 shares of Class A common stock issued and outstanding, compared to 242,647,604 shares as of December 31, 2021[718]. Taxation - For the year ended December 31, 2022, the total income tax benefit recorded by the company was $49,052,000[719]. - The effective tax rate for the company for the year ended December 31, 2022, was 8.2%[719]. - The company experienced a significant increase in domestic tax expense from $(245,390,000) in 2021 to $(598,136,000) in 2022[719]. Impairments and Reserves - The Company recorded a $22.5 million impairment charge for inventory in the fourth quarter of 2022 due to the planned exit from Legacy Sema4 testing services[579]. - Goodwill was fully written off with an impairment loss of $174.5 million for the year ended December 31, 2022, as indicators suggested fair value was less than carrying value[585]. - The Company recorded an impairment charge of $10.0 million related to excess office space as of December 31, 2022[684]. Future Obligations and Contingencies - The Company has up to $150 million in contingent payments related to the Acquisition of Legacy GeneDx, based on revenue milestones for 2022 and 2023[600]. - The first Milestone Payment of $112.5 million is contingent upon the Legacy GeneDx group achieving revenue of at least $163 million for fiscal year 2022, while the second Milestone Payment of $37.5 million is based on achieving $219 million for fiscal year 2023[601]. - The Company accrued $39.0 million for potential recoupments of payments previously made by third-party payors as of December 31, 2022[647].