Teknova(US:TKNO)2022-05-12 20:07Financial Performance - Revenue for the three months ended March 31, 2022, was $11.1 million, an increase of $2.1 million or 22.8% compared to $9.1 million for the same period in 2021[79]. - Operating loss for the three months ended March 31, 2022, was $5.8 million, compared to an operating loss of $0.8 million for the same period in 2021, representing a 605.7% increase in loss[80]. - Gross profit for the three months ended March 31, 2022, was $5.3 million, with a gross profit margin of 48.0%, down from 55.4% in the same period in 2021[89]. - Clinical Solutions revenue surged to $3.8 million for the three months ended March 31, 2022, a 255.9% increase from $1.1 million in the same period in 2021[85]. - Revenue from U.S. customers was $10.8 million for the three months ended March 31, 2022, representing 97.1% of total revenue, up from 96.0% in the same period in 2021[87]. - Revenue from international sales was $0.3 million for the three months ended March 31, 2022, down from $0.4 million in the same period in 2021, representing 2.9% of total revenue[88]. Expenses - Total operating expenses for the three months ended March 31, 2022, were $11.2 million, a significant increase of 91.2% from $5.9 million in the same period in 2021[90]. - Research and development expenses increased to $2.0 million for the three months ended March 31, 2022, a rise of 187.6% compared to $0.7 million for the same period in 2021[90]. - General and administrative expenses rose to $7.3 million for the three months ended March 31, 2022, a 75.3% increase from $4.2 million in the same period in 2021[92]. - The company ceased production of sample transport medium due to declining market demand, resulting in revenue of only $6, compared to $0.9 million in the same period in 2021[86]. Cash Flow and Financing - Net cash used in operating activities for Q1 2022 was $5.2 million, compared to a net cash provided of $2.4 million in Q1 2021[108][110]. - Net cash used in investing activities was $5.9 million for Q1 2022, primarily for purchases of property, plant, and equipment[112]. - The company entered into a credit facility of $27.0 million, consisting of a $22.0 million term loan and a $5.0 million working capital facility[98]. - As of March 31, 2022, the outstanding balance on the term loan was $12.0 million, with no drawdown on the revolving loan[99][101]. - The company expects to maintain sufficient liquidity to fund operations for at least the next 24 months, but may seek additional financing[107]. Regulatory and Compliance - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to take advantage of certain reporting exemptions until it no longer qualifies[118]. - The company is also classified as a "smaller reporting company," which permits it to utilize scaled disclosures until specific market value or revenue thresholds are met, such as a market value of $250 million or annual revenues exceeding $100 million[119]. - The company can present only two years of audited financial statements due to its smaller reporting company status, reducing its financial data obligations[119]. - The company is exempt from the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, which simplifies compliance[119]. - The company will remain an emerging growth company until it reaches total annual gross revenues of $1.07 billion or more, among other criteria[120]. - The company has not disclosed any recent accounting pronouncements that may impact its financial position in the current report[121]. - As a smaller reporting company, the company is not required to provide quantitative and qualitative disclosures about market risk for this reporting period[122]. Taxation - The benefit from income taxes for Q1 2022 was $0.4 million, an increase of 117.6% compared to $0.2 million in Q1 2021, primarily due to an increase in operating loss[94]. Capital Expenditures - The company is constructing a new manufacturing facility in Hollister, California, which is expected to be a significant use of cash over the next 6 to 12 months[97]. Working Capital - As of March 31, 2022, the company had $79.3 million in net working capital, including $76.5 million in cash and cash equivalents[95]. - The credit agreement requires a minimum revenue of $37.5 million by December 31, 2022, increasing to $51.5 million by December 31, 2025[102].