Veracyte(US:VCYT)2024-02-29 13:06Financial Position - As of December 31, 2023, the company had cash and cash equivalents of $216.5 million, consisting of bank deposits and money market funds[507]. - The company held $4.1 million of bank deposits denominated in Euros as of December 31, 2023, which are subject to foreign currency risk[508]. - The company reported cash and cash equivalents of $216.5 million as of December 31, 2023, compared to $154.2 million in 2022, indicating improved liquidity[524]. - Cash, cash equivalents, and restricted cash increased to $217.3 million at the end of 2023, up from $155.0 million in 2022, representing a 39.7% increase[537]. - The total assets decreased to $1.115 billion in 2023 from $1.156 billion in 2022, reflecting a reduction in intangible assets[524]. - The company’s total stockholders' equity decreased to $1.044 billion in 2023 from $1.075 billion in 2022, reflecting the impact of net losses[524]. - The company’s accumulated deficit increased to $468.1 million in 2023 from $393.7 million in 2022, indicating ongoing financial challenges[524]. - The fair value of money market funds decreased significantly from $131.2 million in 2022 to $1.4 million in 2023[617]. - The Company had no short-term investments as of December 31, 2023, compared to $24.6 million in U.S. treasury bills in 2022[621]. Revenue and Losses - Total revenue for 2023 was $361.1 million, up 21.7% from $296.5 million in 2022[526]. - The company’s testing revenue for the year ended December 31, 2023, was approximately $326.5 million, an increase of 30.3% from $250.5 million in 2022[526]. - The net loss for 2023 was $74.4 million, compared to a net loss of $36.6 million in 2022, reflecting a significant increase in losses[526]. - Operating expenses for 2023 totaled $446.8 million, a rise of 32.4% from $337.6 million in 2022[526]. - Revenue from biopharmaceutical and other revenue for the year ended December 31, 2023 was $18.9 million, a decrease from $33.4 million in 2022[580]. - The company recorded a comprehensive loss, which includes net loss and foreign currency translation adjustments, reflecting the overall financial performance[594]. Expenses and Costs - Research and development expenses increased to $57.3 million in 2023, up 41.2% from $40.6 million in 2022[526]. - The company reported stock-based compensation expenses of $33.1 million in 2023, up from $26.7 million in 2022[535]. - The Company recorded impairment charges of $66.9 million and $3.3 million for the years ended December 31, 2023 and 2022, respectively[565]. - The company incurred an impairment loss of $68.3 million in 2023, compared to $3.3 million in 2022[535]. - The Company’s cost of testing revenue includes laboratory expenses, sample collection expenses, and compensation expenses, among others[581]. Legal and Compliance Risks - The company expects to incur significant legal, accounting, and compliance costs as a public company, which could harm its operating results[384]. - The company is required to maintain internal control over financial reporting and report any material weaknesses, which could negatively impact investor confidence[385]. - The company may face reputational damage if it fails to meet environmental, social, and governance (ESG) expectations set by investors and regulators[387]. Stock and Equity - The company has a total of 6,570,076 common stock equivalents excluded from diluted net loss per common share for 2023 due to their anti-dilutive effect[600]. - As of December 31, 2023, the total outstanding and unvested stock options increased to 6,318,389, with a weighted average exercise price of $22.95[638]. - The intrinsic value of stock options exercised in 2023 was $9.0 million, compared to $6.3 million in 2022[640]. - The total stock-based compensation expense for 2023 was $33.141 million, up from $26.734 million in 2022, reflecting increases across all expense categories[651]. Future Projections and Plans - The company plans to continue focusing on expanding its testing services and improving reimbursement rates based on historical data and anticipated trends[526]. - The estimated future aggregate amortization expense for finite-lived intangible assets is projected to be $81.3 million as of December 31, 2023[613]. Tax and Deferred Tax Assets - The Company established a valuation allowance against its net deferred tax assets, which increased by $14.5 million in 2023, $4.8 million in 2022, and $41.9 million in 2021[659]. - The Company had gross deferred tax assets of $162,835 thousand and net deferred tax assets of $22,915 thousand as of December 31, 2023[657]. - The Company had unrecognized tax benefits of $5.7 million as of December 31, 2023, with no anticipated significant changes in the next 12 months[665]. Acquisitions - The company completed the acquisition of C2i Genomics, Inc. in February 2024, enhancing its capabilities in minimal residual disease detection[544]. - The Company completed the acquisition of C2i for a purchase price of $70.0 million on February 5, 2024, with potential milestone payments of up to $25.0 million based on future performance[676]. - The HalioDx acquisition in 2021 was valued at $319.6 million, enhancing the company's capabilities in immuno-oncology[601]. - The Decipher Biosciences acquisition in 2021 was approximately $594.7 million, aimed at advancing diagnostic tests for urologic cancers[602].