Akoya Biosciences, Inc. (NASDAQ:AKYA) Q2 2024 Earnings Conference Call August 5, 2024 5:00 PM ET Corporate Participants Priyam Shah - Head, Investor Relations Brian McKelligon - Chief Executive Officer Johnny Ek - Chief Financial Officer Conference Call Participants William Bonello - Craig-Hallum Kyle Mikson - Canaccord Tejas Savant - Morgan Stanley David Westenberg - Piper Sandler Rachel Vatnsdal - JPMorgan Ricki Levitus - Guggenheim Vivian Bais - BTIG Tim Cheung - Capital One Mason Carrico - Stephens Oper ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 001-40344 Akoya Biosciences, Inc. (Exact name of registrant as specified in its charter) Dela ...

● For the second quarter of 2024, revenue was $23.2 million, a 26.2% quarter- over-quarter increase from $18.4 million in the first quarter and 1.5% year-over- year decrease from $23.5 million in the second quarter of 2023. o Instruments, consumables and services all contributed to sequential growth. Instrument revenue was $8.3 million, a 70.4% quarter-over- quarter increase. Reagent revenue was $7.4 million, a 5.6% quarter- over-quarter increase. Service and other revenue was $7.2 million, a 16.6% quarter- ...

Akoya Biosciences, Inc. (NASDAQ:AKYA) Q1 2024 Earnings Conference Call May 13, 2024 5:00 PM ET Company Participants Priyam Shah - Head, IR Brian McKelligon - CEO Johnny Ek - CFO Conference Call Participants Kyle Mikson - Canaccord David Westenberg - Piper Sandler Mark Massaro - BTIG Tejas Savant - Morgan Stanley Subhalaxmi Nambi - Guggenheim Rachel Vatnsdal - JP Morgan Mason Carrico - Stephens Timothy Chiang - Capital One Operator Good day and thank you for standing by. Welcome to the Akoya Biosciences Firs ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents Akoya Biosciences, Inc.'s unaudited consolidated financial statements for the three months ended March 31, 2024 and 2023, including balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows, along with detailed notes explaining accounting policies, financial instruments, debt, equity, and other financial commitments [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets%20at%20March%2031%2C%202024%20%28Unaudited%29%20and%20December%2031%2C%202023) Consolidated Balance Sheet Summary (in thousands) | Metric | March 31, 2024 | December 31, 2023 | | :-------------------------------- | :------------- | :---------------- | | Total Assets | $154,750 | $180,369 | | Total Liabilities | $122,027 | $126,599 | | Total Stockholders' Equity | $32,723 | $53,770 | - Total assets decreased by **$25.6 million (14.2%)** from December 31, 2023, to March 31, 2024, primarily due to a significant reduction in cash and cash equivalents[16](index=16&type=chunk) - Cash and cash equivalents decreased from **$83.1 million** at December 31, 2023, to **$13.0 million** at March 31, 2024, while marketable securities increased from $0 to **$48.5 million**[16](index=16&type=chunk) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20%28Unaudited%29%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) Consolidated Statements of Operations Summary (in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Total Revenue | $18,350 | $21,410 | | Gross Profit | $8,379 | $12,293 | | Loss from Operations | $(21,585) | $(17,436) | | Net Loss | $(23,484) | $(18,802) | | Net Loss Per Share (Basic & Diluted) | $(0.48) | $(0.49) | - Total revenue decreased by **14.3%** year-over-year, from **$21.4 million** in Q1 2023 to **$18.4 million** in Q1 2024[18](index=18&type=chunk) - Net loss increased by **24.9%** year-over-year, from **$18.8 million** in Q1 2023 to **$23.5 million** in Q1 2024[18](index=18&type=chunk) [Consolidated Statements of Comprehensive Loss](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Loss%20%28Unaudited%29%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) Consolidated Statements of Comprehensive Loss (in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net Loss | $(23,484) | $(18,802) | | Unrealized (loss) gain on marketable securities | $(16) | $6 | | Comprehensive Loss | $(23,500) | $(18,796) | - Comprehensive loss for Q1 2024 was **$(23.5) million**, compared to **$(18.8) million** for Q1 2023, primarily driven by the net loss[20](index=20&type=chunk) [Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity%20%28Unaudited%29%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) Consolidated Statements of Stockholders' Equity (in thousands) | Metric | Balance at Dec 31, 2023 | Balance at Mar 31, 2024 | | :-------------------------- | :---------------------- | :---------------------- | | Total Stockholders' Equity | $53,770 | $32,723 | | Accumulated Deficit | $(230,071) | $(253,555) | | Stock-based Compensation | $0 | $2,566 | | Net Loss | $0 | $(23,484) | - Total stockholders' equity decreased from **$53.8 million** at December 31, 2023, to **$32.7 million** at March 31, 2024, primarily due to the net loss incurred during the period[23](index=23&type=chunk) - Accumulated deficit increased by **$23.5 million**, reflecting the net loss for the three months ended March 31, 2024[23](index=23&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20%28Unaudited%29%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) Consolidated Statements of Cash Flows Summary (in thousands) | Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Net Cash Used in Operating Activities | $(20,824) | $(19,758) | | Net Cash (Used in) Provided by Investing Activities | $(48,817) | $6,196 | | Net Cash Used in Financing Activities | $(444) | $(419) | | Net Decrease in Cash, Cash Equivalents, and Restricted Cash | $(70,085) | $(13,981) | | Cash, Cash Equivalents, and Restricted Cash at End of Period | $13,739 | $60,551 | - Net cash used in operating activities increased by **$1.1 million** year-over-year to **$20.8 million** in Q1 2024[25](index=25&type=chunk)[215](index=215&type=chunk) - Net cash used in investing activities significantly increased to **$48.8 million** in Q1 2024, primarily due to **$48.0 million** in purchases of marketable securities, compared to net cash provided of **$6.2 million** in Q1 2023[25](index=25&type=chunk)[218](index=218&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20%28Unaudited%29) [(1) The Company and Basis of Presentation](index=9&type=section&id=%281%29%20The%20company%20and%20basis%20of%20presentation) This note describes Akoya Biosciences, Inc.'s business, global operations, and assessment of its financial liquidity - Akoya Biosciences, Inc. is a life sciences technology company focused on spatial biology solutions, offering end-to-end tissue analysis and spatial phenotyping through its PhenoCycler and PhenoImager platforms, reagents, software, and services[27](index=27&type=chunk) - The company operates globally, selling into North America, Asia-Pacific (APAC), and Europe-Middle East-Africa (EMEA)[28](index=28&type=chunk) - As of March 31, 2024, the company had **$61.6 million** in cash, cash equivalents, and marketable securities, and an accumulated deficit of **$253.6 million**, but believes existing liquidity is adequate for at least the next twelve months[33](index=33&type=chunk)[35](index=35&type=chunk) [(2) Summary of Significant Accounting Policies](index=11&type=section&id=%282%29%20Summary%20of%20significant%20accounting%20policies) This note details the company's revenue recognition policies and its status as an emerging growth company - Revenue is recognized when a customer obtains control of promised goods or services, disaggregated by product (instruments, consumables, software) and service (warranty, lab services, companion diagnostic development)[40](index=40&type=chunk)[55](index=55&type=chunk) Revenue Disaggregation (in thousands) | Revenue Source | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----------------------- | :-------------------------------- | :-------------------------------- | | Instruments | $4,869 | $9,607 | | Consumables | $7,001 | $5,712 | | Standalone software products | $270 | $205 | | **Total Product Revenue** | **$12,140** | **$15,524** | | Service and other revenue | $3,383 | $3,552 | | Instrument warranty | $2,827 | $2,334 | | **Total Service and Other Revenue** | **$6,210** | **$5,886** | | **Total Revenue** | **$18,350** | **$21,410** | - The company is an 'emerging growth company' and has elected to use the extended transition period for complying with new or revised accounting standards[72](index=72&type=chunk) [(3) Significant Risks and Uncertainties including Business and Credit Concentrations](index=21&type=section&id=%283%29%20Significant%20risks%20and%20uncertainties%20including%20business%20and%20credit%20concentrations) This note outlines the company's credit risk management and customer concentration details - The company's credit risk is concentrated in cash equivalents, marketable securities, and receivables, with guidelines for credit ratings, diversification, and maturities[75](index=75&type=chunk) - An allowance for credit losses is maintained, which increased from **$45 thousand** at December 31, 2023, to **$420 thousand** at March 31, 2024[76](index=76&type=chunk) - For Q1 2024, no single customer accounted for more than **10% of revenue**, but one customer accounted for **16% of accounts receivable**[77](index=77&type=chunk) [(4) Fair Value of Financial Instruments](index=23&type=section&id=%284%29%20Fair%20value%20of%20financial%20instruments) This note presents the fair value measurements of the company's financial assets and liabilities Fair Value of Financial Instruments (in thousands) - March 31, 2024 | Asset/Liability | Balance at March 31, 2024 | Level 1 | Level 2 | Level 3 | | :----------------------------------- | :------------------------ | :------ | :------ | :------ | | **Assets:** | | | | | | Cash equivalents | $11,528 | $10,141 | $1,387 | $— | | U.S Treasury securities | $29,776 | $— | $29,776 | $— | | Corporate bonds | $6,908 | $— | $6,908 | $— | | U.S. Government agency bonds | $4,996 | $— | $4,996 | $— | | Commercial paper | $3,410 | $— | $3,410 | $— | | Yankee bonds | $3,446 | $— | $3,446 | $— | | **Total Assets** | **$60,064** | **$10,141** | **$49,923** | **$—** | | **Liabilities:** | | | | | | Contingent consideration – Short term | $3,839 | $— | $— | $3,839 | | Contingent consideration – Long term | $4,015 | $— | $— | $4,015 | | **Total Liabilities** | **$7,854** | **$—** | **$—** | **$7,854** | - The company's marketable securities, primarily U.S. Treasury securities, corporate bonds, and government agency bonds, are classified as **Level 2** fair value measurements[78](index=78&type=chunk) - Contingent consideration liability, measured using **Level 3** inputs (discounted cash flow analysis), totaled **$7.85 million** at March 31, 2024[78](index=78&type=chunk)[83](index=83&type=chunk) [(5) Property and Equipment, Net](index=26&type=section&id=%285%29%20Property%20and%20equipment%2C%20net) This note details changes in the company's property and equipment, including impairment charges Property and Equipment, Net (in thousands) | Category | March 31, 2024 | December 31, 2023 | | :-------------------------- | :------------- | :---------------- | | Total Property and Equipment, Net | $8,964 | $10,729 | | Total Demo Inventory, Net | $726 | $893 | - Property and equipment, net, decreased by **$1.77 million** from December 31, 2023, to March 31, 2024, primarily due to a **$902 thousand** impairment related to exiting the Menlo Park facility[86](index=86&type=chunk) - Depreciation expense for property and equipment was **$716 thousand** for Q1 2024, up from **$698 thousand** in Q1 2023[87](index=87&type=chunk) [(6) Allowance for Credit Losses](index=26&type=section&id=%286%29%20Allowance%20for%20credit%20losses) This note explains the changes in the company's allowance for credit losses during the period Allowance for Credit Losses Roll-Forward (in thousands) | Metric | Amount | | :----------------------- | :----- | | Balance at January 1, 2024 | $45 | | Change in provision | $375 | | Balance at March 31, 2024 | $420 | - The allowance for credit losses increased significantly from **$45 thousand** at the beginning of 2024 to **$420 thousand** by March 31, 2024, reflecting a **$375 thousand** change in provision[93](index=93&type=chunk) [(7) Intangible Assets](index=28&type=section&id=%287%29%20Intangible%20assets) This note provides a breakdown of the company's intangible assets and their amortization Intangible Assets, Net (in thousands) | Category | March 31, 2024 (Net) | December 31, 2023 (Net) | | :-------------------------- | :------------------- | :-------------------- | | Customer relationships | $7,469 | $7,666 | | Developed technology | $4,492 | $4,665 | | Licenses | $29 | $30 | | Trade names and trademarks | $2,715 | $2,922 | | Capitalized software | $1,994 | $2,129 | | **Total Intangible Assets** | **$16,699** | **$17,412** | - Total intangible assets, net, decreased by **$713 thousand** from December 31, 2023, to March 31, 2024, primarily due to amortization[94](index=94&type=chunk) - Total amortization expense for Q1 2024 was **$713 thousand**, compared to **$817 thousand** in Q1 2023[94](index=94&type=chunk) [(8) Accrued Expenses and Other Current Liabilities](index=29&type=section&id=%288%29%20Accrued%20expenses%20and%20other%20current%20liabilities) This note details the composition and changes in the company's accrued expenses and other current liabilities Accrued Expenses and Other Current Liabilities (in thousands) | Category | March 31, 2024 | December 31, 2023 | | :-------------------------------- | :------------- | :---------------- | | Payroll and compensation | $4,112 | $7,074 | | Current portion of contingent consideration | $3,839 | $1,911 | | Inventory purchases | $458 | $609 | | Customer deposits | $1,479 | $1,096 | | Accrued interest | $791 | $711 | | Other accrued expenses | $1,783 | $2,032 | | **Total** | **$12,462** | **$13,433** | - Total accrued expenses and other current liabilities decreased by **$971 thousand (7.2%)** from December 31, 2023, to March 31, 2024[96](index=96&type=chunk) - Payroll and compensation decreased by **$2.96 million**, while the current portion of contingent consideration increased by **$1.93 million**[96](index=96&type=chunk) [(9) Debt](index=29&type=section&id=%289%29%20Debt) This note describes the company's long-term debt, including the Midcap Trust Term Loan Long-Term Debt, Net (in thousands) | Category | March 31, 2024 | December 31, 2023 | | :-------------------------- | :------------- | :---------------- | | Midcap Trust Term Loan | $75,000 | $75,000 | | Unamortized debt discount | $(419) | $(448) | | Accretion of final fee | $888 | $702 | | **Total long-term debt, net** | **$75,469** | **$75,254** | - The company has a **$75.0 million** Midcap Trust Term Loan, with an interest rate of **12.24%** at March 31, 2024[104](index=104&type=chunk)[105](index=105&type=chunk) - Future principal payments for the Midcap Trust Term Loan are scheduled to begin in December 2025, with significant payments in 2026 and 2027[105](index=105&type=chunk) [(10) Stockholder's Equity](index=31&type=section&id=%2810%29%20Stockholder%27s%20equity) This note outlines changes in the company's common stock and equity offerings - As of March 31, 2024, **49,340,417 shares** of common stock were issued and outstanding, an increase from **49,117,738 shares** at December 31, 2023[106](index=106&type=chunk) - The company has an at-the-market (ATM) offering program to sell up to **$50.0 million** of common stock, but no shares have been sold under this program as of March 31, 2024[107](index=107&type=chunk) - In June 2023, the company completed a follow-on public offering, raising approximately **$47.8 million** in net proceeds[111](index=111&type=chunk) [(11) Stock Compensation Plans](index=33&type=section&id=%2811%29%20Stock%20compensation%20plans) This note details the company's stock-based compensation expense and equity grants - Stock-based compensation expense for Q1 2024 was **$2.57 million**, up from **$2.38 million** in Q1 2023[118](index=118&type=chunk) - The company granted options to purchase **730,000 shares** in Q1 2024 (weighted average fair value **$3.71/share**) and **1,025,951 RSUs** (weighted average fair value **$5.34/share**)[116](index=116&type=chunk)[117](index=117&type=chunk) Stock-Based Compensation Expense Allocation (in thousands) | Category | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Cost of goods sold | $74 | $86 | | Selling, general and administrative | $2,140 | $1,922 | | Research and development | $352 | $367 | | **Total** | **$2,566** | **$2,375** | [(12) Employee Stock Purchase Plan](index=35&type=section&id=%2812%29%20Employee%20stock%20purchase%20plan) This note describes the company's Employee Stock Purchase Plan and its current status - The 2021 Employee Stock Purchase Plan (ESPP) was approved to allow employees to purchase common stock through payroll deductions[120](index=120&type=chunk) - No shares have been issued under the ESPP as of March 31, 2024, or December 31, 2023[120](index=120&type=chunk) [(13) Income Taxes](index=37&type=section&id=%2813%29%20Income%20taxes) This note explains the company's income tax provision and valuation allowance - The company recorded a tax provision of **$63 thousand** for Q1 2024, up from **$29 thousand** in Q1 2023, primarily due to foreign and minimal state taxes[122](index=122&type=chunk) - A full valuation allowance is maintained against U.S. deferred tax assets due to the unlikelihood of realization[122](index=122&type=chunk) [(14) Commitments and Contingencies](index=37&type=section&id=%2814%29%20Commitments%20and%20contingencies) This note details the company's commitments, including royalty payments and contingent consideration - The company has a License Agreement with PKI requiring royalty payments on net sales of covered products and services, accounted for as contingent consideration[123](index=123&type=chunk) Contingent Consideration Liability Changes (in thousands) | Metric | March 31, 2024 | March 31, 2023 | | :----------------------------------- | :------------- | :------------- | | Balance as of December 31 | $5,765 (2023) | $6,039 (2022) | | Reclassification of FY payment to accrued expenses | $(1,929) | $(1,640) | | Change in contingent consideration value | $179 | $227 | | Balance as of March 31 | $4,015 | $4,626 | [(15) Net Loss Per Share Attributable to Common Stockholders](index=37&type=section&id=%2815%29%20Net%20loss%20per%20share%20attributable%20to%20common%20stockholders) This note explains the calculation of net loss per share and potentially dilutive securities Net Loss Per Share Computation | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :---------------------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Net loss | $(23,484) | $(18,802) | | Weighted average common shares outstanding, basic and diluted | 49,188,170 | 38,326,024 | | Basic and diluted net loss per common share outstanding | $(0.48) | $(0.49) | - Diluted net loss per share was **$(0.48)** for Q1 2024, a slight improvement from **$(0.49)** in Q1 2023, despite a higher net loss, due to an increased weighted-average share count[126](index=126&type=chunk) - Potentially dilutive securities (stock options and unvested RSUs) were excluded from diluted EPS calculation as their effect would be anti-dilutive due to the net loss[127](index=127&type=chunk)[128](index=128&type=chunk) [(16) Segments](index=39&type=section&id=%2816%29%20Segments) This note clarifies the company's single reportable segment and geographical revenue distribution - The company operates as a **single reportable segment**, with its chief executive officer viewing and managing the business as such[129](index=129&type=chunk) Revenue by Geographical Market (in thousands) | Region | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :---------------- | :-------------------------------- | :-------------------------------- | | North America | $10,124 (55%) | $11,851 (55%) | | APAC | $3,270 (18%) | $4,387 (21%) | | EMEA | $4,956 (27%) | $5,172 (24%) | | **Total Revenue** | **$18,350 (100%)** | **$21,410 (100%)** | - North America consistently accounted for **55% of total revenue** in both Q1 2024 and Q1 2023, while APAC's share decreased and EMEA's increased[130](index=130&type=chunk) [(17) Related Party Transactions](index=39&type=section&id=%2817%29%20Related%20party%20transactions) This note details transactions with related parties, including cost of goods sold and accounts payable - The company incurred **$1.67 million** in cost of goods sold from Argonaut Manufacturing Services Inc. (AMS), a related party, in Q1 2024, down from **$1.95 million** in Q1 2023[132](index=132&type=chunk) - As of March 31, 2024, **$4.17 million** in inventories, net, and **$2.44 million** in accounts payable were related to AMS[133](index=133&type=chunk) [(18) Leases](index=41&type=section&id=%2818%29%20Leases) This note describes the company's lease arrangements, including impairment charges from facility exits - The company ceased use of its Menlo Park, California facility in Q1 2024, resulting in an impairment charge of **$2.97 million**, including **$2.07 million** for ROU assets and **$902 thousand** for property and equipment[134](index=134&type=chunk)[135](index=135&type=chunk) Lease Costs (in thousands) | Lease Type | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------- | :-------------------------------- | :-------------------------------- | | Finance lease cost | $214 | $201 | | Operating lease cost | $734 | $812 | | **Total Lease Cost** | **$982** | **$1,033** | [(19) Reduction in Force](index=41&type=section&id=%2819%29%20Reduction%20in%20force) This note outlines the company's workforce reduction and associated restructuring charges - In January 2024, the company initiated a workforce reduction, eliminating **51 positions**, as part of cost savings initiatives and facility consolidation[141](index=141&type=chunk) - Restructuring charges of **$1.4 million** were recorded in Q1 2024, including **$1.26 million** for workforce reduction and **$140 thousand** for relocation costs[142](index=142&type=chunk) [(20) Subsequent Events](index=44&type=section&id=%2820%29%20Subsequent%20events) This note confirms the evaluation of subsequent events with no material disclosures - The company evaluated subsequent events through May 13, 2024, the date the financial statements were issued, with no material events disclosed[143](index=143&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Akoya Biosciences, Inc.'s financial condition and results of operations for the three months ended March 31, 2024, compared to the same period in 2023. It covers the company's business overview, key factors affecting performance, business metrics, detailed analysis of revenue and expenses, liquidity, and capital resources [Overview](index=44&type=section&id=Overview) This section provides an overview of Akoya Biosciences' business, spatial biology solutions, and financial performance goals - Akoya Biosciences is a life sciences technology company specializing in spatial biology solutions, offering end-to-end tissue analysis and spatial phenotyping through its PhenoCycler and PhenoImager platforms[145](index=145&type=chunk) - The company aims to provide comprehensive solutions from discovery to clinical research and diagnostics, distinguishing itself by offering both deep exploratory studies and scalable clinical IVD tests[146](index=146&type=chunk) - Akoya has incurred net losses since its inception, with Q1 2024 net loss at **$23.5 million**, and plans to achieve cash flow positivity by growing its business and improving operations[151](index=151&type=chunk) [Key Factors Affecting Results of Operations and Future Performance](index=46&type=section&id=Key%20factors%20affecting%20our%20results%20of%20operations%20and%20future%20performance) This section discusses factors influencing future performance, including platform expansion and margin improvement - Future performance is dependent on expanding the installed base of PhenoCycler and PhenoImager platforms, as instrument sales drive recurring revenue from consumables and services[152](index=152&type=chunk) - The company aims to increase incremental pull-through by launching new applications and biomarker targets, expecting recurring revenue to become an increasingly important contributor[156](index=156&type=chunk) - Improving revenue mix and gross margin is a key factor, with higher margins expected from direct sales and increased consumables/service revenue as a percentage of total revenue[157](index=157&type=chunk)[158](index=158&type=chunk) [Key Business Metrics](index=48&type=section&id=Key%20Business%20Metrics) This section presents key operational metrics, such as instrument placements and installed base growth Instrument Placements | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------- | :-------------------------------- | :-------------------------------- | | Instrument Placements | 30 | 58 | - Instrument placements decreased significantly to **30** in Q1 2024 from **58** in Q1 2023, indicating a slowdown in new system sales[161](index=161&type=chunk)[184](index=184&type=chunk) - The cumulative installed base grew to **1,213 systems** as of March 31, 2024, up from **992 systems** as of March 31, 2023, which is expected to drive future recurring revenue[186](index=186&type=chunk) [Components of Results of Operations](index=50&type=section&id=Components%20of%20results%20of%20operations) This section breaks down the components of revenue, cost of goods sold, and gross profit - Product revenue is generated from instruments, consumables, and software, with instrument sales accounting for **40% of product revenue** in Q1 2024 (down from **62%** in Q1 2023) and consumables for **58%** (up from **37%**)[164](index=164&type=chunk) - Service and other revenue primarily comes from extended service contracts, installation, training, laboratory services, and companion diagnostic development[167](index=167&type=chunk) - Gross profit decreased to **$8.4 million** in Q1 2024 from **$12.3 million** in Q1 2023, with gross margin declining from **57% to 46%**, partly due to a **$2.0 million** charge for obsolete inventory[174](index=174&type=chunk)[188](index=188&type=chunk) [Results of Operations (Detailed Comparison)](index=53&type=section&id=Results%20of%20operations) This section provides a detailed comparison of revenue and operating expenses year-over-year Revenue Comparison (in thousands) | Revenue Type | Q1 2024 | Q1 2023 | Change (Amount) | Change (%) | | :-------------------- | :------ | :------ | :-------------- | :--------- | | Product revenue | $12,140 | $15,524 | $(3,384) | (22)% | | Service and other revenue | $6,210 | $5,886 | $324 | 6% | | **Total revenue** | **$18,350** | **$21,410** | **$(3,060)** | **(14)%** | - Product revenue decreased by **$3.4 million (22%)** due to a **$4.7 million** drop in instrument revenue, partially offset by a **$1.3 million** increase in consumable revenue[184](index=184&type=chunk) Operating Expenses Comparison (in thousands) | Expense Type | Q1 2024 | Q1 2023 | Change (Amount) | Change (%) | | :----------------------------------- | :------ | :------ | :-------------- | :--------- | | Selling, general and administrative | $19,863 | $23,124 | $(3,261) | (14)% | | Research and development | $5,554 | $6,378 | $(824) | (13)% | | Change in fair value of contingent consideration | $179 | $227 | $(48) | (21)% | | Impairment | $2,971 | $— | $2,971 | 100% | | Restructuring | $1,397 | $— | $1,397 | 100% | | **Total operating expenses** | **$29,964** | **$29,729** | **$235** | **1%** | [Liquidity and Capital Resources](index=59&type=section&id=Liquidity%20and%20Capital%20Resources) This section details the company's cash position, funding sources, and cash flow activities - As of March 31, 2024, the company had **$61.6 million** in cash, cash equivalents, and marketable securities[200](index=200&type=chunk) - The company has historically funded operations through equity financings (IPO in 2021, follow-on offering in 2023) and debt, and expects existing liquidity to be sufficient for the next 12 months[201](index=201&type=chunk)[202](index=202&type=chunk)[204](index=204&type=chunk) Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash used in operating activities | $(20,824) | $(19,758) | | Net cash (used in) provided by investing activities | $(48,817) | $6,196 | | Net cash used in financing activities | $(444) | $(419) | | **Net decrease in cash, cash equivalents, and restricted cash** | **$(70,085)** | **$(13,981)** | [Critical Accounting Policies and Estimates](index=63&type=section&id=Critical%20accounting%20policies%20and%20estimates) This section highlights the significant accounting policies and estimates used in financial reporting - The company's financial statements are prepared in accordance with GAAP, requiring estimates and judgments that affect reported amounts[223](index=223&type=chunk)[224](index=224&type=chunk) - No significant changes in critical accounting policies and estimates were reported compared to the Annual Report on Form 10-K for the year ended December 31, 2023[225](index=225&type=chunk) [Recent Accounting Pronouncements](index=65&type=section&id=Recent%20accounting%20pronouncements) This section discusses the impact of recently issued accounting standards on the company - The company is evaluating the impact of ASC Update No. 2023-09 (Income Taxes) on its consolidated financial statements, effective for annual periods beginning after December 15, 2024[74](index=74&type=chunk) - ASC Update No. 2023-07 (Segment Reporting) is effective for annual financial statements beginning January 1, 2024, but is not expected to have a material impact on disclosures[73](index=73&type=chunk) [JOBS Act Accounting Election](index=65&type=section&id=JOBS%20Act%20accounting%20election) This section explains the company's election to delay adoption of new accounting standards as an emerging growth company - As an 'emerging growth company' under the JOBS Act, Akoya has elected to delay adopting new or revised accounting standards until they apply to private companies[227](index=227&type=chunk) [Smaller Reporting Company Status](index=65&type=section&id=Smaller%20reporting%20company%20status) This section outlines the disclosure exemptions available to the company as a smaller reporting company - Akoya is a 'smaller reporting company,' allowing it to rely on exemptions from certain disclosure requirements, such as presenting only two years of audited financial statements and reduced executive compensation disclosures[228](index=228&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Akoya Biosciences, Inc. is not required to provide detailed quantitative and qualitative disclosures about market risk for this reporting period - The company is exempt from providing detailed market risk disclosures due to its status as a smaller reporting company[229](index=229&type=chunk) [Item 4. Controls and Procedures](index=65&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the effectiveness of the company's disclosure controls and procedures, concluding they were effective as of March 31, 2024. No material changes to internal control over financial reporting occurred during the quarter - Disclosure controls and procedures were evaluated and deemed effective as of March 31, 2024[230](index=230&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended March 31, 2024[231](index=231&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=67&type=section&id=Item%201.%20Legal%20Proceedings) Akoya Biosciences, Inc. is not currently a party to any legal proceedings that are expected to have a material adverse effect on its business, financial condition, or results of operations - The company is not currently involved in any material legal proceedings[233](index=233&type=chunk) [Item 1A. Risk Factors](index=67&type=section&id=Item%201A.%20Risk%20Factors) Investing in Akoya's common stock involves significant risk. The company refers to the comprehensive list of risk factors detailed in its Annual Report on Form 10-K for the year ended December 31, 2023, noting no material changes to these risks in the current reporting period - Investing in the company's common stock carries a high degree of risk due to its rapidly changing operating environment[234](index=234&type=chunk) - No material changes to the risk factors described in the Annual Report on Form 10-K for the year ended December 31, 2023, were reported[235](index=235&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=67&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable for the current reporting period, indicating no unregistered sales of equity securities or specific use of proceeds to report - This item is not applicable[236](index=236&type=chunk) [Item 3. Defaults Upon Senior Securities](index=67&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable for the current reporting period, indicating no defaults upon senior securities to report - This item is not applicable[237](index=237&type=chunk) [Item 4. Mine Safety Disclosures](index=67&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable for the current reporting period, as the company does not have operations related to mine safety - This item is not applicable[238](index=238&type=chunk) [Item 5. Other Information](index=67&type=section&id=Item%205.%20Other%20Information) During the first quarter of 2024, no directors or officers adopted or terminated any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements - No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q1 2024[239](index=239&type=chunk) [Item 6. Exhibits](index=68&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Form 10-Q, including organizational documents, investor agreements, certifications, and XBRL interactive data files - The exhibits include the Amended and Restated Certificate of Incorporation, Bylaws, Investors' Rights Agreement, Description of Capital Stock, and various certifications (302, 906) and XBRL documents[241](index=241&type=chunk) [Signatures](index=69&type=section&id=Signatures) The report is duly signed on behalf of Akoya Biosciences, Inc. by Brian McKelligon, President and Chief Executive Officer, and Johnny Ek, Chief Financial Officer, on May 13, 2024 - The report was signed by Brian McKelligon (President and CEO) and Johnny Ek (CFO) on May 13, 2024[245](index=245&type=chunk)

Financial Performance - Revenue for Q1 2024 was $18.4 million, a decrease of 14% compared to $21.4 million in Q1 2023[5] - Gross margin for Q1 2024 was reported at 46%, while non-GAAP adjusted gross margin was 57%, consistent with Q1 2023[6] - Operating expenses for Q1 2024 were $30.0 million, with non-GAAP operating expenses at $25.6 million, compared to $29.7 million in Q1 2023[6] - Loss from operations for Q1 2024 was $21.6 million, while non-GAAP loss from operations was $15.2 million[11] - Loss from operations for Q1 2024 was $21,585,000, compared to $17,436,000 in Q1 2023, indicating an increase in losses[22] - Non-GAAP loss from operations improved to $15,172,000 in Q1 2024 from $17,436,000 in Q1 2023[22] - The company incurred $2,045,000 in provisions for excess and obsolete inventories due to product discontinuation and lease exit inventory charges[22] - An impairment charge of $2,971,000 was recorded in Q1 2024[22] - Restructuring costs amounted to $1,397,000 in the first quarter of 2024[22] Operational Highlights - The installed base of instruments increased by 22% year-over-year, reaching 1,213 units as of March 31, 2024[11] - Total publications citing Akoya's technology rose to 1,307, marking a 52% increase from the previous year[11] - Akoya established a new Manufacturing Center of Excellence to scale internal reagent manufacturing[5] - The KR-HT5 instrument received premarket approval from China's National Medical Products Administration[5] Future Outlook - The company expects full-year 2024 revenue to be in the range of $104.0 million to $112.0 million[7] - Cash, cash equivalents, and marketable securities totaled $61.6 million as of March 31, 2024[11]

Akoya Biosciences, Inc. (NASDAQ:AKYA) Q4 2023 Earnings Conference Call March 4, 2024 5:00 PM ET Company Participants Priyam Shah - Head, IR Brian McKelligon - CEO Johnny Ek - CFO Conference Call Participants Subbu Nambi - Guggenheim Kyle Mikson - Canaccord Tejas Savant - Morgan Stanley John Sourbeer - UBS Mark Massaro - BTIG Rachel Vatnsdal - JP Morgan Operator Good day and thank you for standing by. Welcome to the Akoya Biosciences Fourth Quarter 2023 Earnings Conference Call. At this time, all participant ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 001-40344 Akoya Biosciences, Inc. (Exact name of registrant as specified in its charter) Delaw ...

Financial Data and Key Metrics Changes - Akoya reported record revenue of $25.2 million for Q3 2023, reflecting a 34% increase year-over-year [7][19] - Gross profit reached $15.3 million, a 40% growth compared to the prior year, with a gross margin of 60.6% [7][22] - Operating expenses decreased to $26.8 million from $27.6 million in the prior year, indicating a focus on cost management [23] Business Line Data and Key Metrics Changes - Product revenue, including instruments, reagents, and software, totaled $18 million, representing a 25% increase year-over-year [19] - Instrument revenue was $12 million, showing a 27% growth, with 69 instruments sold during the quarter [19][20] - Reagent revenue reached $5.7 million, reflecting a 21% increase, with annualized reagent pull-through now in the mid $30,000 range [21] Market Data and Key Metrics Changes - The Americas market grew in the mid-40% range year-over-year, while EMEA saw mid-20% growth; APAC experienced mid-single-digit growth [42] - The installed base of instruments reached 1,132, solidifying Akoya's position as a leader in spatial biology [24] Company Strategy and Development Direction - Akoya is focused on enhancing applications and workflow efficiency through the Spatial Biology 2.0 initiative, which includes system improvements and expanded PhenoCode offerings [17] - The company aims to drive clinical adoption and operational excellence while targeting cash flow positivity by 2025 [18][25] - Strategic investments are being made to maintain operating expenses while scaling the business [8][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining strong growth throughout 2023 and beyond, reaffirming revenue guidance of $95 million to $98 million for the year [25] - The company is optimistic about the clinical opportunities arising from partnerships and the growing demand for spatial biology solutions [82] Other Important Information - Akoya's installed base includes 327 PhenoCyclers and 805 PhenoImagers, with expectations for significant upgrades to the 2.0 versions by year-end [20] - The company has established partnerships with leading software providers to enhance data analysis capabilities [14] Q&A Session Summary Question: Update on the 2.0 rollout progress - Management expects about 50% of both platforms to be upgraded by year-end, with no significant changes to previous expectations [29][31] Question: Insights on gross margin improvement - Gross margin is expected to improve through supply chain efficiencies and a shift towards higher-margin reagent sales [38][40] Question: Market demand and capital purchases - There is a slight lengthening in visibility around capital purchases, but the affordability of Akoya's platforms is seen as a competitive advantage [44][45] Question: Growth outlook for services business - Continued growth is anticipated in the services segment driven by an expanding installed base and partnerships with CROs [75] Question: Adoption of PhenoCode Panels - The timeline for higher utilization of PhenoCode Panels is expected to align with the rollout of system upgrades and increased CRO engagement in 2024 [79]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 001-40344 Akoya Biosciences, Inc. (Exact name of registrant as specified in its charter) ...