☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 85-1388175 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
530 Old Whitfield Street | ||
Guilford, Connecticut | 06437 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbols(s) | Name of each exchange on which registered | ||
Class A common stock, $0.0001 per share | QSI | The Nasdaq Stock Market LLC | ||
Redeemable warrants, each whole warrant exercisable for one share of Class A common stock, each at an exercise price of $11.50 per share | QSIAW | The Nasdaq Stock Market LLC |
Large accelerated filer | Accelerated filer | ☐ | |
Non-accelerated filer | Smaller reporting company | ☒ | |
Emerging growth company | ☐ |
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● | the ability to recognize the |
● | the ability to maintain the listing of our Class A common stock on The Nasdaq Stock Market LLC (“Nasdaq”); |
● | changes in applicable laws or regulations; |
● | our ability to raise financing in the future; |
● | the success, cost and timing of our product development activities; |
● | the commercialization and adoption of our existing products and the success of any product we may offer in the future; |
● | the potential attributes and benefits of our commercialized PlatinumTM protein sequencing instrument and our other products once commercialized; |
● | our ability to obtain and maintain regulatory approval for our products, and any related restrictions and limitations of any approved product; |
● | our ongoing leadership transition; |
● | our ability to identify, in-license or acquire additional technology; |
● | our ability to maintain our existing license agreements and manufacturing arrangements; |
● | our ability to compete with other companies currently marketing or engaged in the development of products and services that serve customers engaged in proteomic analysis, many of which have greater financial and marketing resources than us; |
● | the size and growth potential of the markets for our products, and the ability of each product to serve those markets once commercialized, either alone or in partnership with others; |
● | our estimates regarding expenses, future revenue, capital requirements and needs for additional financing; |
● | our financial performance; and |
● | the impact of the COVID-19 pandemic on our business. |
● | We are an early-stage life sciences technology company with a history of net losses, which we expect to continue, and we may not be able to generate meaningful revenues or achieve and sustain profitability in the future. |
● | We have a limited operating history, which may make it difficult to evaluate the prospects for our future viability and predict our future performance. As such, you cannot rely upon our historical operating performance to make an investment or voting decision regarding us. |
● | We may need to raise additional capital to fund commercialization plans for our products, including manufacturing, sales and marketing activities, expand our investments in research and development, and commercialize new products and applications. |
● | If we experience material weaknesses in our internal control over financial reporting in the future or otherwise fail to maintain an effective system of internal controls in the future, we may not be able to report our financial condition, results of operations or cash flows accurately or in a timely manner, which may adversely affect investor confidence in us and, as a result, materially and adversely affect our business and the value of our Class A common stock. |
● | We recently commercially launched our first product, but we may not be able to successfully commercially launch our products as planned. |
● | Because we are a “controlled company” within the meaning of the Nasdaq rules, our stockholders may not have certain corporate governance protections that are available to stockholders of companies that are not controlled companies. |
● | The dual class structure of our common stock has the effect of concentrating voting power with Jonathan M. Rothberg, Ph.D., our Chairman of the board of directors and Founder, which will limit an investor’s ability to influence the outcome of important transactions, including a change in control. |
● | Our success depends on broad scientific and market acceptance of our products, which we may fail to achieve. |
● | The size of the markets for our products may be smaller than estimated, and new market opportunities may not develop as quickly as we expect, or at all, limiting our ability to successfully sell our products. |
● | Unfavorable global economic conditions could adversely affect our business, financial condition or results of operations. |
● | The COVID-19 pandemic and efforts to reduce its spread have adversely impacted, and are expected to continue to materially and adversely impact, our business and operations. |
● | If we do not sustain or successfully manage our anticipated growth, our business and prospects will be harmed. |
● | We are undertaking internal restructuring activities that could result in disruptions to our business or otherwise materially harm our results of operations or financial condition. |
● | We are currently undergoing a leadership transition and internal restructuring, and we depend on our key personnel and other highly qualified personnel, and if we are unable to recruit, train and retain our personnel in the future, we may not achieve our goals. |
● | We expect to be dependent upon revenue generated from the sales of our initial products from the time they are commercialized through the foreseeable future. |
● | We rely on a small number of contract manufacturers to manufacture and supply our products. If these manufacturers should fail or not perform satisfactorily, our ability to commercialize and supply our products would be adversely affected. |
● | If we do not successfully develop and deploy our Quantum-Si Cloud™software service, our commercialization efforts and therefore business and results of operations could suffer. |
● | We have limited experience producing and supplying our products, and we may be unable to consistently manufacture or source our instruments and consumables to the necessary specifications or in quantities necessary to meet demand on a timely basis and at acceptable performance and cost levels. |
● | The life sciences technology market is highly competitive. If we fail to compete effectively, our business and results of operations will suffer. |
● | If we elect to label and promote any of our products as clinical diagnostics or medical devices, we would be required to obtain prior marketing authorization from the U.S. Food and Drug Administration (“FDA”), which would take significant time and expense and could fail to result in FDA marketing authorization of the device for the intended use or uses we believe are commercially attractive. |
● | Our products, if used for the diagnosis of disease, could be subject to government regulation, and the regulatory approval and maintenance process for such products may be expensive, time-consuming, and uncertain both in timing and in outcome. |
● | Our research use only (“RUO”) products could become subject to government regulation as medical devices by the FDA and other regulatory agencies even if we do not elect to seek regulatory authorization to market our products for diagnostic purposes, which would adversely impact our ability to market and sell our products and harm our business. |
● | If we are unable to obtain and maintain and enforce sufficient intellectual property protection for our products and technology, or if the scope of the intellectual property protection obtained is not sufficiently broad, our competitors could develop and commercialize products similar or identical to ours, and our ability to successfully commercialize our products may be impaired. |
● | We may not be able to protect our intellectual property rights throughout the world. |
Personalized medicine: tailoring of disease treatment based |
Biomarker discovery: identification of protein markers for disease identification; |
Drug discovery and development: identification of potential drug candidates and aid in the development of the drug; |
Systems biology: system-wide investigations of disease pathways to identify biomarkers, drug action, toxicity, efficacy and resistance; |
Industry / agriculture: bioproduction and study of plant-pathogen interaction (e.g. crop engineering for drought resistance); and |
Food science: identification of allergies, understanding an improvement of nutritional values and food quality and safety control. |
Lower-plex methods.Lower-plex proteomic analysis methods include immunoassay, Gel, and |
Higher-plex |
Limitations of biased |
Mass spectrometry tools have a high cost of purchase and ownership. For more than a decade, |
Low levels of resolution and |
There is no end-to-end platform to enable a true |
Costly and complex data |
● | Transport and meter out small volumes of reagents/samples between reservoirs; |
● | Perform chemical or enzymatic incubations with or without temperature control; |
● | Purify target analyte; and |
● | Automate sample prep through to library creation. |
What protein is present? Amino acid resolution can provide insight into more than just whether a protein is present or absent. The sequence information could also indicate what version of the protein is present and how it has been changed from the normal version. |
How much of the protein is present? A digital quantification provides precise protein abundance, not an analog theoretical abundance based on a colorimetric or mass abundance readout. |
How has the protein been modified? Single-molecule sensitivity could show how the protein has been post-translationally modified thus providing greater insights to its role in the context of biological processes within the cell. |
● | User management for secured data access; |
● | Light-weight library information management system for data management; |
● | Multi-tenancy to enable data sharing and collaborations; and |
Differentiated single molecule detection providing the ultimate level of protein sensitivity and specificity. Our platform is based on our proprietary semiconductor chip designed to enable measurements at the ultimate level of sensitivity and specificity, single molecules. By enabling |
Amino acid resolution and Post-Translational Modification (PTM) detection. Moving beyond simple confirmatory information provided by affinity-based platforms, our platform delivers amino acid resolution shifting the output from analog to digital. The ability to also identify PTMs could provide novel insights into how pathways are turned on/off |
Real-time data processing and |
Innovative proprietary end-to-end proteomic platform offering differentiated full suite of protein sequencing solutions. We believe that our platform will enable full end-to-end proteomics workflow solution spanning sample preparation through protein sequencing and analysis, allowing our customers a seamless opportunity to perform proteomic studies at scale. We also believe that we are the first company to successfully enable |
Platform to enable democratized access to proteomics tools. Our platform is designed to provide an easy-to-use workflow with the potential to enable users the ability to better characterize and understand the full complexity of the proteome in an unbiased fashion. Current workflows are typically disaggregated, expensive, require significant training to operate, and are often performed in a separate specialty laboratory. We aim for our technology platform to be broadly available across pharmaceutical and academic research centers, basic research labs, and other healthcare centers and clinical laboratories (for RUO until appropriate regulatory authorization is secured to allow clinical or diagnostic uses) at a price point that is a significant discount to most legacy technologies. The reduction in both cost and complexity could allow for rapid adoption, whether a user is replacing a legacy technology or buying a new instrument. In addition to appealing to users of existing proteomics tools, we believe that our proteomics platform will appeal to users of DNA sequencing technologies who seek to augment their research and discovery of biomarkers and further deepen their understanding of biology. |
Business model that leverages growing |
Robust patent protection. We have a strong intellectual property strategy in which we have |
Systematic and phased approach to broad commercialization and |
B |
Invest in market development activities to increase awareness of the importance of the proteome and the strengths of our platform. We believe our platform has the capability to enable users to generate significant amounts of proteomic information at speed, scale, and simplicity through a solution that |
Continued technical innovation to drive product enhancements, new products, and additional applications. Our leadership team has deep expertise in scientific and technological development and commercialization. After we commercialize our initial products, we aim to continually innovate and develop new products, product enhancements, applications, workflows, and other tools to enable our customers to generate unbiased proteomic information at scale on a benchtop platform. |
Accessibility and Enablement: Enable broad adoption of protein sequencing. Our mission is to democratize single molecule proteomic analysis by providing a full workflow of solutions at an affordable cost. We believe that our platform will directly address many of the key bottlenecks that exist within legacy proteomic technologies, namely low sensitivity, lack of dynamic range, complex workflow, complex analysis, and high cost. We believe our platform offers the potential for a more practical, affordable, and intuitive end-to-end workflow solution relative to many legacy proteomic technologies. We have specifically developed our platform to be adopted and integrated into any existing lab. We believe that our platform will have wide utility across the study of proteins, including basic and discovery research and, subject to regulatory authorization, clinical diagnostics, and potentially industrial applications like bioproduction. Our ability to develop our platform such that it will be offered at a significant discount to many legacy instruments and other proteomic technologies, may allow proteomic analysis to reach new markets and new users, potentially enabling and accelerating innovative discoveries. |
Continue to strengthen our intellectual property portfolio for existing and new technologies. We have a broad and deep patent protection strategy, which includes |
Foster extraordinary talent inspired and unified by our mission. With decades of cumulative experience in the healthcare and life sciences markets among our executive officers and other senior management, our world-class management team is unified by our mission to democratize single molecule proteomic analysis by making protein sequencing accessible globally. We seek to execute at scale the vision of our Founder |
1. | Metered Launch: In December 2022, we launched Platinum™ for RUO. In our initial launch, we are targeting established academic research centers and pharmaceutical companies in the United States and Europe. During our initial launch phase, we are focusing on driving our technology into research centers. Our platform is currently intended for RUO applications, and it will continue to be marketed as RUO until regulatory authorizations allowing for clinical or diagnostic uses are obtained. We are targeting customers that will directly benefit from the value of our platform across a number of applications, including basic and discovery research and translational research. We anticipate these customers may already have existing proteomic capabilities through legacy instruments such as a MS, and so will understand the importance of single molecule, unbiased proteomic analysis. During this phase, we expect to continue to strengthen our commercial organization and broaden our commercial footprint to support an increasing number of customers. |
2. | Product Updates: As we continue commercialization in 2023 and beyond, we expect to focus on building our installed base and expanding global access to our platform. We expect to make product enhancements to our initial platform and to make them available to our new and then existing customers. Potential improvements could include an increase in the capacity of our semiconductor chips or chemistry enhancements to our instruments, which may improve accuracy, coverage, speed and data output. |
3. | Portfolio Expansion: Ultimately, we plan to advance and develop new products and key applications designed to “scale up” our Platinum instrument to provide higher throughput and enable greater levels of data output and broader coverage of the proteome. We also plan to “scale down” by eventually launching our Atto instrument, which will be a low cost, low throughput instrument, potentially creating a pathway to point of care testing. We may also seek regulatory authorization for clinical or diagnostic use of our products. |
Name | Position | |
Executive Officers | ||
Jeffrey Hawkins | Chief Executive Officer and Director | |
Claudia Drayton | Chief Financial Officer | |
Patrick Schneider, Ph.D. | President and Chief Operating Officer | |
Grace Johnston, Ph.D. | Chief Commercial Officer | |
Michael P. McKenna, Ph.D. | Executive Vice President, Product Development and Operations | |
Christian LaPointe, Ph.D. | General Counsel and Corporate Secretary | |
Directors | ||
Jonathan M. Rothberg, Ph.D. | Chairman of the Board of Directors | |
Vikram Bajaj, Ph.D. | Managing Director, Foresite Capital Management, LLC | |
Marijn Dekkers, Ph.D. | Founder and Chairman, Novalis LifeSciences LLC | |
Ruth Fattori | Managing Partner, Pecksland Partners Senior Advisor, Boston Consulting Group | |
Brigid A. Makes | Independent Consultant | |
Michael Mina, M.D., Ph.D. | Chief Science Officer, eMed | |
Kevin Rakin | Co-Founder and Partner, HighCape Capital |
● | resolution and sensitivity; |
● | cost of instruments and consumables; |
● | efficiency and speed of workflows; |
● | the scale required to address the complexity and dynamic range of the proteome; |
● | throughput to meet lab testing volume; |
● | reputation among customers and key thought leaders; |
● | innovation in product offerings; |
● | accuracy and reproducibility of results; |
● | strength of intellectual property portfolio; |
● | operational and manufacturing footprint; |
● | customer support infrastructure; and |
● | a leadership and commercial team with extensive execution and scientific background. |
● | Development of comprehensive product description and indications for use. |
● | Completion of extensive nonclinical tests and/or animal studies, performed in accordance with the FDA’s Good Laboratory Practice (“GLP”) regulations, as well as any performance standards or other testing requirements established by the FDA through regulations or device-specific guidance. |
● | Comprehensive review of one or more predicate devices and development of data supporting the new product’s substantial equivalence to such predicate devices. |
● | the product may not be safe or effective for its intended use(s) to the FDA’s satisfaction; |
● | the data from the applicant’s nonclinical studies and clinical trials may be insufficient to support approval; |
● | the manufacturing process or facilities that the applicant uses may not meet applicable requirements; and |
● | changes in FDA approval policies or adoption of new regulations may require additional data to demonstrate the safety or effectiveness of the device. |
● | the FDA, the IRB(s), or other regulatory authorities do not approve a clinical trial protocol or a clinical trial, or place a clinical trial on hold; |
● | participants do not enroll in clinical trials at the expected rate; |
● | participants do not comply with trial protocols; |
● | participant follow-up is not at the expected rate; |
● | participants experience adverse side effects; |
● | participants die during a clinical trial, even though their death may not be related to the investigational products; |
● | third-party clinical investigators decline to participate in a trial or do not perform a trial on the sponsor’s anticipated schedule or consistent with the clinical trial protocol, GCPs or other FDA requirements; |
● | the sponsor or third-party organizations do not perform data collection, monitoring and analysis in a timely or accurate manner or consistent with the clinical trial protocol or investigational or statistical plans; |
● | third-party clinical investigators have significant financial interests related to the sponsor or the study that the FDA deems to make the study results unreliable, or the sponsor or investigators fail to disclose such interests; |
● | unfavorable regulatory inspections of the sponsor’s clinical trial sites or manufacturing facilities, which may, among other things, require the sponsor to undertake corrective action or suspend or terminate the sponsor’s clinical trials; |
● | changes in governmental regulations or administrative actions applicable to the sponsor’s trial protocols; |
● | the interim or final results of the clinical trial are inconclusive or unfavorable as to safety or effectiveness; and |
● | the FDA concludes that the results from the sponsor’s trial and/or trial design are inadequate to demonstrate safety and effectiveness of the product. |
● | establishment registration and device listing; |
● | the QSR, which requires manufacturers, including third-party manufacturers, to follow design, testing, control, storage, supplier/contractor selection, complaint handling, documentation and other quality assurance procedures; |
● | labeling regulations, which govern the mandatory elements of the device labels and packaging (including Unique Device Identifier markings for certain categories of products); |
● | FDA’s prohibitions against the promotion of products for uncleared, unapproved or “off-label” uses and other requirements related to promotional activities; |
● | the MDR regulations, which require that manufacturers report to the FDA if a device may have caused or contributed to a death or serious injury or malfunctioned in a way that would likely cause or contribute to a death or serious injury if it were to recur; |
● | voluntary and mandatory device recalls addressing problems when a device is defective and/or could be a risk to health; |
● | correction and removal reporting regulations, which require that manufacturers report to the FDA field corrections and product recalls or removals if undertaken to reduce a risk to health posed by the device or to remedy a violation of the FDCA that may present a risk to health; and |
● | post-market surveillance regulations, which apply to certain Class II or III devices when necessary to protect the public health or to provide additional safety and effectiveness data for the device. |
● | Warning Letters or Untitled Letters that require corrective action; |
● | fines and civil penalties; |
● | unanticipated expenditures; |
● | delays in approving/clearing or refusal to approve/clear any of our future products; |
● | FDA refusal to issue certificates to foreign governments needed to export our products for sale in other countries; |
● | suspension or withdrawal of FDA approval or clearance (as may be applicable); |
● | product recall or seizure; |
● | partial suspension or total shutdown of production; |
● | operating restrictions; |
● | injunctions or consent decrees; and |
● | civil or criminal prosecution. |
● | the timing and amount of expenditures that we may incur to develop, commercialize or acquire additional products and technologies or for other purposes, such as the expansion of our facilities; |
● | changes in governmental funding of life sciences research and development or changes that impact budgets or budget cycles |
● | seasonal spending patterns of our customers; |
● | the timing of when we recognize any revenues; |
● | future accounting pronouncements or changes in our accounting policies; |
● | the outcome of any future litigation or governmental investigations involving us, our industry or both |
● | higher than anticipated service, replacement and warranty costs; |
● | the impact of the COVID-19 pandemic on the economy, investment in life sciences and research industries, our business operations, and resources and operations of our suppliers, distributors and potential customers; an |
● | general industry, economic and market conditions and other factors, including factors unrelated to our operating performance or the operating performance of our competitors. |
● | the inability to establish the capabilities and value proposition of our products with key opinion leaders in a timely fashion; |
● | the potential need or desire to modify aspects of our products prior to entering into the second or third phases of our commercial launch plan; |
● | changing industry or market conditions, customer requirements or competitor offerings over the span of our commercial launch plan; |
● | delays in building out our sales, customer support and marketing organization as needed for each of the phases of our commercial launch plan; and |
● | delays in ramping up manufacturing, either internally or through our suppliers to meet the expected demand in each of the phases of our commercial launch plan. |
● | our ability to market and increase awareness of the capabilities of our products; |
● | the ability of our products to demonstrate comparable performance in intended use applications broadly in the hands of customers consistent with the early access limited release phase of our commercialization plan; |
● | our potential customers’ willingness to adopt new products and workflows; |
● | our product’s ease of use and whether it reliably provides advantages over other alternative technologies; |
● | the rate of adoption of our products by academic institutions, laboratories, biopharmaceutical companies and others; |
● | the prices we charge for our products; |
● | our ability to develop new products and workflows and solutions for customers; |
● | if competitors develop and commercialize products that perform similar functions as our products; and |
● | the impact of our investments in product innovation and commercial growth. |
● | our ability to attract, retain and manage the sales, marketing and customer service and support force necessary to commercialize and gain market acceptance of our products; |
● | the time and cost of establishing a specialized sales, marketing and customer service and support force; and |
● | our sales, marketing and customer service and support force may be unable to initiate and execute successful commercialization activities. |
● | decreases in government funding of research and development; |
● | changes to programs that provide funding to research laboratories and institutions, including changes in the amount of funds allocated to different areas of research or changes that have the effect of increasing the length of the funding process; |
● | macroeconomic conditions and the political climate; |
● | potential changes in the regulatory environment; |
● | differences in budgetary cycles, especially government- or grant-funded customers, whose cycles often coincide with government fiscal year ends; |
● | competitor product offerings or pricing; |
● | market-driven pressures to consolidate operations and reduce costs; and |
● | market acceptance of relatively new technologies. |
● | required compliance with existing and changing foreign regulatory requirements and laws that are or may be applicable to our business in the future, such as the European Union’s General Data Protection Regulation (“GDPR”) and other data privacy requirements, labor and employment regulations, anti-competition regulations, the U.K. Bribery Act of 2010 and other anti-corruption laws, regulations relating to the use of certain hazardous substances or chemicals in commercial products, and require the collection, reuse, and recycling of waste from products we manufacture; |
● | required compliance with U.S. laws such as the Foreign Corrupt Practices Act, and other U.S. federal laws and regulations established by the Office of Foreign Assets Control of the U.S. Department of the Treasury; |
● | export requirements and import or trade restrictions; |
● | laws and business practices favoring local companies; |
● | foreign currency exchange, longer payment cycles and difficulties in enforcing agreements and collecting receivables through certain foreign legal systems; |
● | changes in social, economic, and political conditions or in laws, regulations and policies governing foreign trade, manufacturing, research and development, and investment both domestically as well as in the other countries and jurisdictions in which we operate and into which it may sell our products including as a result of the separation of the United Kingdom from the European Union (“Brexit”); |
● | potentially adverse tax consequences, tariffs, customs charges, bureaucratic requirements, and other trade barriers; |
● | difficulties and costs of staffing and managing foreign operations; and |
● | difficulties protecting, maintaining, enforcing or procuring intellectual property rights. |
● | a failure to achieve market acceptance for our products or expansion of our product sales; |
● | loss of customer orders and delay in order fulfillment; |
● | damage to our brand reputation; |
● | loss of revenue; |
● | increased warranty and customer service and support costs due to product repair or replacement; |
● | product recalls or replacements; |
● | inability to attract new customers; |
● | diversion of resources from our manufacturing and research and development team into our service team; and |
● | legal claims against us, including product liability claims, which could be costly and time consuming to defend and result in substantial damages. |
● | greater name and brand recognition; |
● | greater financial and human resources; |
● | broader product lines; |
● | larger sales forces and more established distributor networks; |
● | substantial intellectual property portfolios; |
● | larger and more established customer bases and relationships; and |
● | better established, larger scale and lower cost manufacturing capabilities. |
the federal Anti-Kickback Statute, which prohibits, among other things, persons and entities from knowingly and willfully soliciting, offering, receiving or providing remuneration, directly or indirectly, in cash or in kind, to induce either the referral of an individual or furnishing or arranging for a good or service, for which payment may be made, in whole or in part, under federal healthcare programs, such as Medicare and Medicaid. A person or entity does not need to have actual knowledge of the statute or specific intent to violate it to have committed a violation; |
● | the federal civil and criminal false claims laws, including the federal civil False Claims Act, which prohibit, among other things, individuals or entities from knowingly presenting, or causing to be presented, claims for payment from Medicare, Medicaid or other federal healthcare programs that are false or fraudulent. Private individuals can bring False Claims Act “qui tam” actions, on behalf of the government and such individuals, commonly known as “whistleblowers,” may share in amounts paid by the entity to the government in fines or settlement. |
● | the federal Civil Monetary Penalties Law, which prohibits, among other things, offering or transferring remuneration to a federal healthcare beneficiary that a person knows or should know is likely to influence the beneficiary’s decision to order or receive items or services reimbursable by the government from a particular provider or supplier; |
● | HIPAA, which created additional federal criminal statutes that prohibit, among other things, executing a scheme to defraud any healthcare benefit program and making false statements relating to healthcare matters; |
● | the federal Physician Sunshine Act, which requires certain manufacturers of drugs, devices, biologics and medical supplies for which payment is available under Medicare, Medicaid or the Children’s Health Insurance Program, to report annually to CMS, information related to payments and other transfers of value to physicians |
● | analogous state and foreign law equivalents of each of the above federal laws, such as anti-kickback and false claims laws, which may apply to items or services reimbursed by any third-party payor, including commercial insurers or patients. |
● | the scope of rights granted under the license agreement and other interpretation-related issues; |
● | our financial or other obligations under the license agreement; |
● | whether, and the extent to which, our products, technology and processes infringe on intellectual property of the licensor that is not subject to the licensing agreement; |
● | our diligence obligations under the license agreement and what activities satisfy those diligence obligations; |
● | the inventorship and ownership of inventions and know-how resulting from the joint creation or use of intellectual property by our licensor(s); and |
● | the priority of invention of patented technology. |
● | others may be able to make products that are similar to products and technologies we may develop or utilize similar technology that are not covered by the claims of the patents that we own or license now or in the future; |
● | we, or our licensor(s), might not have been the first to make the inventions covered by the issued patent or pending patent application that we license or may own in the future; |
● | we, or our licensor(s), might not have been the first to file patent applications covering certain of our or their inventions; |
● | others may independently develop similar or alternative technologies or duplicate any of our technologies without infringing, misappropriating or otherwise violating our owned or licensed intellectual property rights; |
● | it is possible that our pending licensed patent applications or those that we may own in the future will not lead to issued patents; |
● | issued patents that we hold rights to may be held invalid or unenforceable, including as a result of legal challenges by our competitors; |
● | our competitors might conduct research and development activities in countries where we do not have patent rights and then use the information learned from such activities to develop competitive products for sale in our major commercial markets; |
● | we may not develop additional proprietary technologies that are patentable; |
● | the patents of others may harm our business; and |
● | we may choose not to file a patent for certain trade secrets or know-how, and a third party may subsequently file a patent covering such intellectual property. |
● | the ability of our board of directors to issue one or more series of preferred stock; |
● | stockholder action by written consent only until the first time when Dr. Rothberg ceases to beneficially own a majority of the voting power of our capital stock; |
● | certain limitations on convening special stockholder meetings; |
● | advance notice for nominations of directors by stockholders and for stockholders to include matters to be considered at our annual meetings; |
● | amendment of certain provisions of the organizational documents only by the affirmative vote of (i) a majority of the voting power of our capital stock so long as Dr. Rothberg beneficially owns shares representing a majority of the voting power of our capital stock and (ii) at least two-thirds of the voting power of the capital stock from and after the time that Dr. Rothberg ceases to beneficially own shares representing a majority of our voting power; and |
● | a dual-class common stock structure with 20 votes per share of our Class B common stock, the result of which is that Dr. Rothberg has the ability to control the outcome of matters requiring stockholder approval, even though Dr. Rothberg owns less than a majority of the outstanding shares of our capital stock. |
ITEM 1B. | UNRESOLVED STAFF COMMENTS |
ITEM 2. | PROPERTIES |
ITEM 3. | LEGAL PROCEEDINGS |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
ITEM 6. | [RESERVED] |
ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Years Ended December 31, | ||||||||||||
(in thousands, except for % changes) | 2022 | 2021 | % Change | |||||||||
Operating expenses: | ||||||||||||
Research and development | $ | 72,062 | $ | 46,575 | 54.7 | % | ||||||
Selling, general and administrative | 42,296 | 50,333 | (16.0 | )% | ||||||||
Goodwill impairment | 9,483 | - | nm | |||||||||
Total operating expenses | 123,841 | 96,908 | 27.8 | % | ||||||||
Loss from operations | (123,841 | ) | (96,908 | ) | 27.8 | % | ||||||
Interest expense | - | (5 | ) | (100.0 | )% | |||||||
Dividend income | 5,301 | 2,549 | 108.0 | % | ||||||||
Change in fair value of warrant liabilities | 6,243 | 4,379 | 42.6 | % | ||||||||
Other (expense), net | (20,145 | ) | (5,004 | ) | 302.6 | % | ||||||
Loss before provision for income taxes | (132,442 | ) | (94,989 | ) | 39.4 | % | ||||||
Provision for income taxes | - | - | nm | |||||||||
Net loss and comprehensive loss | $ | (132,442 | ) | $ | (94,989 | ) | 39.4 | % |
Years Ended December 31, | Change | |||||||||||||||
(in thousands, except for % changes) | 2022 | 2021 | Amount | % | ||||||||||||
Research and development | $ | 72,062 | $ | 46,575 | $ | 25,487 | 54.7 | % |
Years Ended December 31, | Change | |||||||||||||||
(in thousands, except for % changes) | 2022 | 2021 | Amount | % | ||||||||||||
Selling, general and administrative | $ | 42,296 | $ | 50,333 | $ | (8,037 | ) | (16.0 | )% |
Years Ended December 31, | Change | |||||||||||||
(in thousands, except for % changes) | 2022 | 2021 | Amount | % | ||||||||||
Goodwill impairment | $ | 9,483 | $ | - | $ | 9,483 | nm |
Years Ended December 31, | Change | |||||||||||||||
(in thousands, except for % changes) | 2022 | 2021 | Amount | % | ||||||||||||
Interest expense | $ | - | $ | (5 | ) | $ | 5 | (100.0 | %) |
Years Ended December 31, | Change | |||||||||||||||
(in thousands, except for % changes) | 2022 | 2021 | Amount | % | ||||||||||||
Dividend income | $ | 5,301 | $ | 2,549 | $ | 2,752 | 108.0 | % |
Years Ended December 31, | Change | |||||||||||||||
(in thousands, except for % changes) | 2022 | 2021 | Amount | % | ||||||||||||
Change in fair value of warrant liabilities | $ | 6,243 | $ | 4,379 | $ | 1,864 | 42.6 | % |
Years Ended December 31, | Change | |||||||||||||||
(in thousands, except for % changes) | 2022 | 2021 | Amount | % | ||||||||||||
Other (expense), net | $ | (20,145 | ) | $ | (5,004 | ) | $ | (15,141 | ) | 302.6 | % |
Years ended December 31, | Years Ended December 31, | |||||||||||||||||||||||
(in thousands, except for % changes) | 2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Research and development | $ | 46,575 | $ | 27,555 | 69.0 | % | $ | 46,575 | $ | 27,555 | 69.0 | % | ||||||||||||
General and administrative | 46,377 | 7,984 | 480.9 | % | ||||||||||||||||||||
Sales and marketing | 3,956 | 1,152 | 243.4 | % | ||||||||||||||||||||
Selling, general and administrative | 50,333 | 9,136 | 450.9 | % | ||||||||||||||||||||
Total operating expenses | 96,908 | 36,691 | 164.1 | % | 96,908 | 36,691 | 164.1 | % | ||||||||||||||||
Loss from operations | (96,908 | ) | (36,691 | ) | 164.1 | % | (96,908 | ) | (36,691 | ) | 164.1 | % | ||||||||||||
Interest expense | (5 | ) | (9 | ) | (44.4 | %) | (5 | ) | (9 | ) | (44.4 | )% | ||||||||||||
Dividend income | 2,549 | 97 | 2527.8 | % | 2,549 | 97 | nm | |||||||||||||||||
Change in fair value of warrant liabilities | 4,379 | - | nm | 4,379 | - | nm | ||||||||||||||||||
Other (expense) income, net | (5,004 | ) | (10 | ) | 49940.0 | % | ||||||||||||||||||
Other (expense), net | (5,004 | ) | (10 | ) | nm | |||||||||||||||||||
Loss before provision for income taxes | (94,989 | ) | (36,613 | ) | 159.4 | % | (94,989 | ) | (36,613 | ) | 159.4 | % | ||||||||||||
Provision for income taxes | - | - | nm | - | - | nm | ||||||||||||||||||
Net loss and comprehensive loss | $ | (94,989 | ) | $ | (36,613 | ) | 159.4 | % | $ | (94,989 | ) | $ | (36,613 | ) | 159.4 | % |
Years Ended December 31, | Change | |||||||||||||||
(in thousands, except for % changes) | 2021 | 2020 | Amount | % | ||||||||||||
Research and development | $ | 46,575 | $ | 27,555 | $ | 19,020 | 69.0 | % |
Years Ended December 31, | Change | Years Ended December 31, | Change | |||||||||||||||||||||||||||||
(in thousands, except for % changes) | 2021 | 2020 | Amount | % | 2021 | 2020 | Amount | % | ||||||||||||||||||||||||
General and administrative | $ | 46,377 | $ | 7,984 | $ | 38,393 | 480.9 | % | ||||||||||||||||||||||||
Selling, general and administrative | $ | 50,333 | $ | 9,136 | $ | 41,197 | 450.9 | % |
Years Ended December 31, | Change | |||||||||||||||
(in thousands, except for % changes) | 2021 | 2020 | Amount | % | ||||||||||||
Sales and marketing | $ | 3,956 | $ | 1,152 | $ | 2,804 | 243.4 | % |
Years Ended December 31, | Change | Years Ended December 31, | Change | |||||||||||||||||||||||||||||
(in thousands, except for % changes) | 2021 | 2020 | Amount | % | 2021 | 2020 | Amount | % | ||||||||||||||||||||||||
Interest expense | $ | (5 | ) | $ | (9 | ) | $ | 4 | (44.4 | %) | $ | (5 | ) | $ | (9 | ) | $ | 4 | (44.4 | )% |
Years Ended December 31, | Change | Years Ended December 31, | Change | |||||||||||||||||||||||||||
(in thousands, except for % changes) | 2021 | 2020 | Amount | % | 2021 | 2020 | Amount | % | ||||||||||||||||||||||
Dividend income | $ | 2,549 | $ | 97 | $ | 2,452 | 2527.8 | % | $ | 2,549 | $ | 97 | $ | 2,452 | nm |
Years Ended December 31, | Change | |||||||||||||
(in thousands, except for % changes) | 2021 | 2020 | Amount | % | ||||||||||
Change in fair value of warrant liabilities | $ | 4,379 | $ | - | $ | 4,379 | nm |
Years Ended December 31, | Change | Years Ended December 31, | Change | |||||||||||||||||||||||||||
(in thousands, except for % changes) | 2021 | 2020 | Amount | % | 2021 | 2020 | Amount | % | ||||||||||||||||||||||
Other (expense), net | $ | (5,004 | ) | $ | (10 | ) | $ | (4,994 | ) | 49940.0 | % | $ | (5,004 | ) | $ | (10 | ) | $ | (4,994 | ) | nm |
Years ended December 31, | ||||||||||||
(in thousands, except for % changes) | 2020 | 2019 | % Change | |||||||||
Operating expenses: | ||||||||||||
Research and development | $ | 27,555 | $ | 28,102 | (1.9 | %) | ||||||
General and administrative | 7,984 | 7,884 | 1.3 | % | ||||||||
Sales and marketing | 1,152 | 634 | 81.7 | % | ||||||||
Total operating expenses | 36,691 | 36,620 | 0.2 | % | ||||||||
Loss from operations | (36,691 | ) | (36,620 | ) | 0.2 | % | ||||||
Interest expense | (9 | ) | - | nm | ||||||||
Dividend income | 97 | 823 | (88.2 | %) | ||||||||
Change in fair value of warrant liabilities | - | - | nm | |||||||||
Other (expense) income, net | (10 | ) | 5 | (300.0 | %) | |||||||
Loss before provision for income taxes | (36,613 | ) | (35,792 | ) | 2.3 | % | ||||||
Provision for income taxes | - | - | nm | |||||||||
Net loss and comprehensive loss | $ | (36,613 | ) | $ | (35,792 | ) | 2.3 | % |
Years Ended December 31, | Change | |||||||||||||||
(in thousands, except for % changes) | 2020 | 2019 | Amount | % | ||||||||||||
Research and development | $ | 27,555 | $ | 28,102 | $ | (547 | ) | (1.9 | %) |
Years Ended December 31, | Change | |||||||||||||||
(in thousands, except for % changes) | 2020 | 2019 | Amount | % | ||||||||||||
General and administrative | $ | 7,984 | $ | 7,884 | $ | 100 | 1.3 | % |
Years Ended December 31, | Change | |||||||||||||||
(in thousands, except for % changes) | 2020 | 2019 | Amount | % | ||||||||||||
Sales and marketing | $ | 1,152 | $ | 634 | $ | 518 | 81.7 | % |
Years Ended December 31, | Change | ||||||||||||||||
(in thousands, except for % changes) | 2020 | 2019 | Amount | % | |||||||||||||
Interest expense | $ | (9 | ) | $ | - | $ | (9 | ) | | nm |
Years Ended December 31, | Change | |||||||||||||||
(in thousands, except for % changes) | 2020 | 2019 | Amount | % | ||||||||||||
Dividend income | $ | 97 | $ | 823 | $ | (726 | ) | (88.2 | %) |
Years Ended December 31, | Change | |||||||||||||||
(in thousands, except for % changes) | 2020 | 2019 | Amount | % | ||||||||||||
Other (expense) income, net | $ | (10 | ) | $ | 5 | $ | (15 | ) | (300.0 | %) |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2019 | 2022 | 2021 | 2020 | ||||||||||||||||||
Net loss | $ | (94,989 | ) | (36,613 | ) | (35,792 | ) | $ | (132,442 | ) | $ | (94,989 | ) | $ | (36,613 | ) | ||||||||
Adjustments to reconcile to EBITDA: | ||||||||||||||||||||||||
Interest expense | 5 | 9 | - | - | 5 | 9 | ||||||||||||||||||
Dividend income | (2,549 | ) | (97 | ) | (823 | ) | (5,301 | ) | (2,549 | ) | (97 | ) | ||||||||||||
Depreciation and amortization | 2,584 | 1,041 | 894 | |||||||||||||||||||||
EBITDA | (135,159 | ) | (96,492 | ) | (35,807 | ) | ||||||||||||||||||
Adjustments to reconcile to Adjusted EBITDA: | ||||||||||||||||||||||||
Goodwill impairment | 9,483 | - | - | |||||||||||||||||||||
Change in fair value of warrant liabilities | (4,379 | ) | - | - | (6,243 | ) | (4,379 | ) | - | |||||||||||||||
Other expense (income), net | 5,004 | 10 | (5 | ) | ||||||||||||||||||||
Stock-based compensation expense | 24,918 | 1,924 | 2,715 | |||||||||||||||||||||
Depreciation | 1,041 | 894 | 780 | |||||||||||||||||||||
Other expense, net | 20,145 | 5,004 | 10 | |||||||||||||||||||||
Stock-based compensation | 11,206 | 24,918 | 1,924 | |||||||||||||||||||||
Transaction related costs - business combination | 6,920 | - | - | - | 6,920 | - | ||||||||||||||||||
Adjusted EBITDA | $ | (64,029 | ) | $ | (33,873 | ) | $ | (33,125 | ) | $ | (100,568 | ) | $ | (64,029 | ) | $ | (33,873 | ) |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2019 | 2022 | 2021 | 2020 | ||||||||||||||||||
Net cash (used in) provided by: | ||||||||||||||||||||||||
Net cash used in operating activities | $ | (66,813 | ) | $ | (32,573 | ) | $ | (30,708 | ) | $ | (90,560 | ) | $ | (66,813 | ) | $ | (32,573 | ) | ||||||
Net cash used in investing activities | (450,937 | ) | (461 | ) | (1,241 | ) | ||||||||||||||||||
Net cash provided by (used in) investing activities | 137,185 | (450,937 | ) | (461 | ) | |||||||||||||||||||
Net cash provided by financing activities | 516,625 | 37,014 | 18,217 | 1,909 | 516,625 | 37,014 | ||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | $ | (1,125 | ) | $ | 3,980 | $ | (13,732 | ) | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 48,534 | $ | (1,125 | ) | $ | 3,980 |
● | Risk-free interest rate: The risk-free interest rate for periods within the expected term of the awards is based on the U.S. Treasury yield curve in effect at the time of the grant; |
● | Expected dividend yield: We have never declared or paid any cash dividends and do not expect to pay any cash dividends in the foreseeable future; |
● | Expected term: For awards, we calculate the expected term using the “simplified” method, which is the simple average of the vesting period and the contractual term; and |
● | Expected volatility: We determined expected annual equity volatility to be 70% based on the historical volatility of guideline public companies for the year ended December 31, 2020 and from January to June 10, 2021. After June 10, 2021, the volatility is calculated by a third-party professional services firm and reviewed by the Company. |
Item 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9B. | OTHER INFORMATION |
ITEM 9C. | DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
ITEM 11. | EXECUTIVE COMPENSATION |
Name | 2020 Base Salary | 2021 Base Salary | % Increase | ||||||||||
John Stark (2) | $ | 350,000 | $ | 500,000 | (1) | 42.9 | % | ||||||
Claudia Drayton (3) | - | $ | 385,000 | - | |||||||||
Michael P. McKenna, Ph.D. | $ | 262,500 | $ | 440,000 | (4) | 67.6 | % | ||||||
Matthew Dyer, Ph.D. | $ | 262,500 | $ | 400,000 | (4) | 52.4 | % | ||||||
Christian LaPointe, Ph.D. | $ | 240,000 | $ | 375,000 | (1) | 56.3 | % |
Name | Incentive Target Amount (as a % of Base Salary) | Annual Target Bonus (1) | Actual Award | |||||||||
John Stark | 100 | % | $ | 425,000 | $ | 352,750 | (2) | |||||
Claudia Drayton | 50 | % | $ | 129,062 | $ | 115,000 | ||||||
Michael P. McKenna, Ph.D. | 50 | % | $ | 178,906 | $ | 150,000 | ||||||
Matthew Dyer, Ph.D. | 50 | % | $ | 168,906 | $ | 145,000 | ||||||
Christian LaPointe, Ph.D. | 50 | % | $ | 153,750 | $ | 132,500 |
Name and Position | Year | Salary ($) | Bonus ($) | Stock Awards ($) (2) | Option Awards ($) (3) | Non-Equity Incentive Plan Compensation ($) | All Other Compensation ($) | Total ($) | |||||||||||||||||||||
John Stark | 2021 | $ | 425,000 | $ | 8,750 | (1) | $ | 15,711,346 | (10) | $ | - | $ | 352,750 | $ | 43,096 | (5) | $ | 16,540,942 | |||||||||||
Former Chief Executive Officer and Director (4) | 2020 | $ | 58,333 | $ | - | $ | - | $ | - | $ | - | $ | 7,564 | $ | 65,897 | ||||||||||||||
2019 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||
Claudia Drayton | 2021 | $ | 247,500 | $ | - | $ | 905,322 | $ | 1,119,239 | $ | 115,000 | $ | - | $ | 2,387,061 | ||||||||||||||
Chief Financial Officer (6) | 2020 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||
2019 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||
Michael P. McKenna, PhD. | 2021 | $ | 357,813 | $ | 250,000 | (1) | $ | 680,268 | $ | 492,946 | $ | 150,000 | $ | 100,000 | (7) | $ | 2,031,027 | ||||||||||||
President and Chief Operating Officer | 2020 | $ | 262,500 | $ | 75,000 | $ | - | $ | - | $ | - | $ | - | $ | 337,500 | ||||||||||||||
2019 | $ | 250,000 | $ | 50,000 | $ | - | $ | - | $ | - | $ | - | $ | 300,000 | |||||||||||||||
Matthew Dyer, PhD. | 2021 | $ | 337,813 | $ | 250,000 | (1) | $ | 680,268 | $ | - | $ | 145,000 | $ | 25,903 | (8) | $ | 1,438,984 | ||||||||||||
Chief Business Officer | 2020 | $ | 262,500 | $ | 75,000 | $ | - | $ | 257,500 | $ | - | $ | 58,868 | $ | 653,868 | ||||||||||||||
2019 | $ | 250,000 | $ | 20,000 | $ | - | $ | 742,788 | $ | - | $ | 44,747 | $ | 1,057,535 | |||||||||||||||
Christian LaPointe, PhD. | 2021 | $ | 307,500 | $ | 50,000 | (1) | $ | 1,333,809 | $ | 246,592 | $ | 132,500 | $ | - | $ | 2,070,401 | |||||||||||||
General Counsel and Corporate Secretary (9) | 2020 | $ | 36,000 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 36,000 | ||||||||||||||
2019 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - |
Name | Grant Date | Estimated Future Payouts Under Non-Equity Incentive Plan Awards: Target ($) (1) | Estimated Future Payouts Under Equity Incentive Plan Awards: Target (#) | All Other Stock Awards: Number of Shares of Stock or Units (#) | All Other Option Awards: Number of Securities Underlying Options (#) | Exercise or Base Price of Option Awards ($/Sh) | Grant Date Fair Value of Stock and Option Awards ($) (2) | |||||||||||||||||||||
John Stark | - | $ | 425,000 | - | - | - | $ | - | $ | - | ||||||||||||||||||
2/17/2021 | $ | - | - | 1,703,460 | (3) | - | $ | - | $ | 13,338,092 | ||||||||||||||||||
2/17/2021 | $ | - | 453,777 | (4) | - | - | $ | - | $ | 2,373,254 | (5) | |||||||||||||||||
Claudia Drayton | - | $ | 129,062 | - | - | - | $ | - | $ | - | ||||||||||||||||||
4/20/2021 | $ | - | - | 95,700 | (6) | - | $ | - | $ | 905,322 | ||||||||||||||||||
4/20/2021 | $ | - | - | - | 191,399 | (7) | $ | 9.46 | $ | 1,119,239 | ||||||||||||||||||
Michael P. McKenna, Ph.D. | - | $ | 178,906 | - | - | - | $ | - | - | |||||||||||||||||||
3/12/2021 | $ | - | - | 79,750 | (8) | - | $ | - | $ | 680,268 | ||||||||||||||||||
8/31/2021 | $ | - | - | - | 100,000 | (9) | $ | 9.72 | $ | 492,946 | ||||||||||||||||||
Matthew Dyer, Ph.D. | - | $ | 168,906 | - | - | - | $ | - | $ | - | ||||||||||||||||||
3/12/2021 | $ | - | - | 79,750 | (10) | - | $ | - | $ | 680,268 | ||||||||||||||||||
Christian LaPointe, Ph.D. | - | $ | 153,750 | - | - | - | $ | - | - | |||||||||||||||||||
2/17/2021 | $ | - | - | 170,346 | (11) | - | $ | - | $ | 1,333,809 | ||||||||||||||||||
8/31/2021 | $ | - | - | - | 50,000 | (12) | $ | 9.72 | $ | 246,592 |
Option Awards | Stock Awards | ||||||||||||||||||||||||||||||||
Name | Grant Date | Number of Securities Underlying Unexercised Options Exercisable (#) | Number of Securities Underlying Unexercised Options Unexercisable (#) | Option Exercise Price | Options Expiration Date | Number of Shares or Units That Have Not Vested | Market Value of Shares or Units of Stock That Have Not Vested (1) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Unit Rights That Have Not Vested | ||||||||||||||||||||||||
John Stark | 2/17/2021 | - | - | $ | - | - | 1,703,460 | (2) | $ | 13,406,230 | - | - | |||||||||||||||||||||
2/17/2021 | - | - | $ | - | - | - | $ | - | 453,777 | (3) | $ | 3,571,225 | |||||||||||||||||||||
Claudia Drayton | 4/20/2021 | - | 191,399 | (4) | $ | 9.46 | 4/20/2031 | - | $ | - | - | - | |||||||||||||||||||||
4/20/2021 | - | - | $ | - | - | 95,700 | (5) | $ | 753,159 | - | - | ||||||||||||||||||||||
Michael P. McKenna, Ph.D. | 3/12/2021 | - | - | $ | - | - | 79,750 | (7) | $ | 627,633 | - | - | |||||||||||||||||||||
8/31/2021 | 10,415 | (6) | 89,585 | $ | 9.72 | 8/31/2031 | - | $ | - | - | - | ||||||||||||||||||||||
Matthew Dyer, Ph.D. | 1/11/2018 | 7,490 | (8) | - | $ | 2.56 | 1/11/2028 | - | $ | - | - | - | |||||||||||||||||||||
8/23/2019 | 159,506 | (9) | 79,744 | $ | 3.03 | 8/23/2029 | - | $ | - | - | - | ||||||||||||||||||||||
8/23/2019 | 115,135 | (10) | 39,886 | $ | 3.03 | 8/23/2029 | - | $ | - | - | - | ||||||||||||||||||||||
5/17/2020 | 60,766 | (11) | 73,228 | $ | 2.90 | 5/17/2030 | - | $ | - | - | - | ||||||||||||||||||||||
3/12/2021 | - | - | $ | - | - | 79,750 | (12) | $ | 627,633 | - | - | ||||||||||||||||||||||
Christian LaPointe, Ph.D. | 2/17/2021 | - | - | $ | - | - | 170,346 | (14) | $ | 1,340,623 | - | - | |||||||||||||||||||||
8/31/2021 | - | 50,000 | (13) | $ | 9.72 | 8/31/2031 | - | $ | - | - | - |
Option Awards | ||||||||
Name | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) (1) | ||||||
John Stark | - | $ | - | |||||
Claudia Drayton | - | $ | - | |||||
Michael P. McKenna, Ph.D. | - | $ | - | |||||
Matthew Dyer, Ph.D. | 142,114 | $ | 987,744 | |||||
Christian LaPointe, Ph.D. | - | $ | - |
Name | Compensation Component | Termination Without Cause Absent a Change in Control ($) | Termination Without Cause or For Good Reason Within 12 Months Following a Change of Control ($) | |||||||
John Stark (2) | Cash compensation | $ | 500,000 | (3) | $ | 1,250,000 | (5) | |||
Acceleration of unvested options and RSUs | $ | 3,351,565 | (1) | $ | 16,757,787 | (1) | ||||
Benefits and Perquisites | $ | 26,905 | $ | 40,357 | ||||||
Claudia Drayton | Cash compensation | $ | 288,750 | (3) | $ | 577,500 | (5) | |||
Acceleration of unvested options and RSUs | $ | - | $ | 753,159 | (1) | |||||
Benefits and Perquisites | $ | 14,457 | (4) | $ | 19,275 | (4) | ||||
Michael P. McKenna, Ph.D. | Cash Compensation | $ | 330,000 | (3) | $ | 660,000 | (5) | |||
Acceleration of unvested options and RSUs | $ | 156,904 | (1) | $ | 627,633 | (1) | ||||
Benefits and Perquisites | $ | 15,394 | (4) | $ | 20,525 | (4) | ||||
Matthew Dyer, Ph.D. | Cash compensation | $ | 300,000 | (3) | $ | 600,000 | (5) | |||
Acceleration of unvested options and RSUs | $ | 156,904 | (1) | $ | 1,570,585 | (1) | ||||
Benefits and Perquisites | $ | 20,179 | (4) | $ | 26,905 | (4) | ||||
Christian LaPointe, Ph.D. | Cash compensation | $ | 281,250 | (3) | $ | 562,500 | (5) | |||
Acceleration of unvested options and RSUs | $ | 335,152 | (1) | $ | 1,340,623 | (1) | ||||
Benefits and Perquisites | $ | 15,394 | $ | 20,525 |
Name | Fees Earned or Paid in Cash ($)(1) | Stock Awards ($) (2) | Option Awards ($) (2) | All Other Compensation ($) | Total | |||||||||||||||
Jonathan M. Rothberg, Ph.D. | $ | 30,673 | $ | 12,994,992 | (3) | $ | - | $ | 221,831 | (3) | $ | 13,247,496 | ||||||||
Marijn Dekkers, Ph.D. | $ | 37,459 | $ | 1,479,492 | (5) | $ | - | $ | - | $ | 1,516,951 | |||||||||
Ruth Fattori | $ | 41,621 | $ | 1,479,492 | (5) | $ | - | $ | - | $ | 1,521,113 | |||||||||
Brigid A. Makes | $ | 38,846 | $ | 199,992 | $ | - | $ | - | $ | 238,838 | ||||||||||
Michael Mina, M.D., Ph.D. (4) | $ | 27,747 | $ | 199,992 | $ | 2,094,023 | $ | - | $ | 2,321,762 | ||||||||||
Kevin Rakin | $ | 30,522 | $ | 199,992 | $ | - | $ | - | $ | 230,514 | ||||||||||
James Tananbaum, M.D | $ | 31,909 | $ | 199,992 | $ | - | $ | - | $ | 231,901 |
Name | Number of Stock Options Held at Fiscal Year-End | Number of Restricted Stock Units Held at Fiscal Year-End | |||||||
Jonathan M. Rothberg, Ph.D. | - | 1,520,512 | |||||||
Marijn Dekkers, Ph.D. | - | 170,512 | |||||||
Ruth Fattori | - | 170,512 | |||||||
Brigid A. Makes | - | 20,512 | |||||||
Michael Mina, M.D., Ph.D. | 279,123 | 20,512 | |||||||
Kevin Rakin | - | 20,512 | |||||||
James Tananbaum, M.D. | - | 20,512 |
Position | Retainer | |||
Audit committee chairperson | $ | 20,000 | ||
Audit committee member | $ | 10,000 | ||
Compensation committee chairperson | $ | 15,000 | ||
Compensation committee member | $ | 7,500 | ||
Nominating and corporate governance committee chairperson | $ | 10,000 | ||
Nominating and corporate governance committee member | $ | 5,000 |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
Name and Address of Beneficial Owner | Number of shares of Class A Common Stock | % | Number of shares Class B Common stock | % | % of Total Voting Power** | |||||||||||||||
Directors and Executive Officers: | ||||||||||||||||||||
Jonathan M. Rothberg, Ph.D. (1) | 15,692,967 | 13.2 | % | 19,937,500 | 100.0 | % | 80.1 | % | ||||||||||||
John Stark (2) | 245,996 | * | - | - | * | |||||||||||||||
Claudia Drayton | - | - | - | - | - | |||||||||||||||
Michael P. McKenna, Ph.D. (3) | 834,105 | * | - | - | * | |||||||||||||||
Matthew Dyer, Ph.D. (4) | 658,647 | * | - | - | * | |||||||||||||||
Christian LaPointe, Ph.D. (5) | 90,580 | * | - | - | * | |||||||||||||||
Marijn Dekkers, Ph.D. (6) | 549,980 | * | - | - | * | |||||||||||||||
Ruth Fattori (7) | 49,980 | * | - | - | * | |||||||||||||||
Brigid A. Makes | - | - | - | - | - | |||||||||||||||
Michael Mina, M.D., Ph.D. | - | - | - | - | - | |||||||||||||||
Kevin Rakin (8) | 1,890,000 | 1.6 | % | - | - | * | ||||||||||||||
James Tananbaum, M.D. (9) | 8,403,805 | 7.1 | % | - | - | 1.6 | % | |||||||||||||
All Current Directors and Executive Officers as a Group (11 Individuals) (10) | 28,170,064 | 23.6 | % | 19,937,500 | 100.0 | % | 82.4 | % | ||||||||||||
Five Percent Holders: | ||||||||||||||||||||
Jonathan M. Rothberg, Ph.D. (1) | 15,692,967 | 13.2 | % | 19,937,500 | 100.0 | % | 8.1 | % | ||||||||||||
ARK Investment Management LLC (11) | 13,067,150 | 11.0 | % | - | - | 2.5 | % | |||||||||||||
Foresite Capital (9) | 8,403,805 | 7.1 | % | - | - | 1.6 | % | |||||||||||||
Glenview Capital Management, LLC (12) | 6,000,000 | 5.1 | % | - | - | 1.2 | % |
(a) | (b) | (c) | |||||||||||||||||||
Plan category | Plan category Number of securities to be issued upon exercise of outstanding options, warrants and rights | �� | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | |||||||||||||||||
Equity compensation plans approved by security holders | 12,313,944 | (1) | $ | 5.14 | (2) | 11,891,127 | (3) | ||||||||||||||
Equity compensation plans not approved by security holders | - | - | - | ||||||||||||||||||
Total | 12,313,944 | $ | 5.14 | 11,891,127 | (4) |
Name | Shares | Aggregate Purchase Price | Date of Issuance | ||||||
Foresite Capital Fund IV, L.P. | 1,865,672 | $ | 10,000,002 | February 21, 2020 | |||||
Foresite Capital Fund IV, L.P. | 3,731,343 | $ | 19,999,998 | December 29, 2020 | |||||
Foresite Capital Fund V, L.P. | 932,836 | $ | 5,000,001 | December 29, 2020 |
ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
2021 | 2020 | |||||||
Audit fees (1) | $ | 1,431,200 | $ | 43,775 | ||||
Audit-related fees (2) | 1,155,000 | - | ||||||
Tax fees (2) | - | - | ||||||
All other fees (2) | - | - | ||||||
Total | $ | 2,586,200 | $ | 43,775 |
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES |
Page | |
(a). 1. Index to Consolidated Financial Statements as of December 31, | |
Report of Independent Registered Public Accounting Firm (Deloitte & Touche LLP, PCAOB ID 34) | |
Exhibit Number | Exhibit Description | Filed Here with | Incorporated by Reference Herein from Form or Schedule | Filing Date | SEC File/ Reg. Number | |||||||||
Business Combination Agreement, dated as of February 18, 2021, by and among Quantum-Si Incorporated (formerly HighCape Capital Acquisition Corp.), Clay Merger Sub, Inc., and Q-SI Operations Inc. (formerly Quantum-Si Incorporated) | Form 8-K (Exhibit 2.1) | 2/18/2021 | 001-39486 | |||||||||||
Second Amended and Restated Certificate of Incorporation of Quantum-Si Incorporated | Form 8-K (Exhibit 3.1) | 6/15/2021 | 001-39486 | |||||||||||
Amended and Restated Bylaws of Quantum-Si Incorporated | Form 10-K (Exhibit 3.2) | 3/1/2021 | 001-39486 | |||||||||||
Description of Securities | X | |||||||||||||
Specimen Class A Common Stock Certificate | Form S-4/A (Exhibit 4.1) | 5/11/2021 | 333-253691 | |||||||||||
Warrant Agreement, dated as of September 3, 2020, by and between Quantum-Si Incorporated (formerly HighCape Capital Acquisition Corp.) and Continental Stock Transfer & Trust Company | Form 8-K (Exhibit 4.1) | 9/9/2020 | 001-39486 |
Form of PIPE Investor Subscription Agreement for institutional investors, dated as of February 18, 2021, by and between Quantum-Si Incorporated (formerly HighCape Capital Acquisition Corp.) and the subscriber parties thereto | Form 8-K (Exhibit 10.1) | 2/18/2021 | 001-39486 | |||||||
Form of PIPE Investor Subscription Agreement for accredited investors, dated as of February 18, 2021, by and between Quantum-Si Incorporated (formerly HighCape Capital Acquisition Corp.) and the subscriber parties thereto | Form 8-K/A (Exhibit 10.2) | 2/19/2021 | 001-39486 |
Form of Subscription Agreement, dated as of February 18, 2021, by and between Quantum-Si Incorporated (formerly HighCape Capital Acquisition Corp.) and the Foresite Funds | Form 8-K/A (Exhibit 10.3) | 2/19/2021 | 001-39486 | |||||||||||
Transaction Support Agreement, dated as of February 19, 2021, by and among Quantum-Si Incorporated (formerly HighCape Capital Acquisition Corp.), and certain supporting stockholders of Q-SI Operations Inc. (formerly Quantum-Si Incorporated) | Form 8-K (Exhibit 10.1) | 2/22/2021 | 001-39486 | |||||||||||
Sponsor Letter Agreement, dated as of February 18, 2021, by and among HighCape Capital Acquisition LLC, Deerfield Partners, L.P., Quantum-Si Incorporated (formerly HighCape Capital Acquisition Corp.) and Q-SI Operations Inc. (formerly Quantum-Si Incorporated) | Form 8-K (Exhibit 10.4) | 2/18/2021 | 001-39486 | |||||||||||
Offer Letter of Employment, dated as of October | ||||||||||||||
Form 8-K (Exhibit 10.1) | 001-39486 | |||||||||||||
Offer Letter of Employment, dated as of April 26, 2022, by and between Quantum-Si Incorporated and Patrick Schneider | Form 8-K (Exhibit 10.1) | 5/9/2022 | 001-39486 | |||||||||||
Offer Letter of Employment, dated as of December 8, 2022, by and between Quantum-Si Incorporated and Grace Johnston | X | |||||||||||||
Offer Letter of Employment, dated as of March 23, 2021, by and between Q-SI Operations Inc. (formerly Quantum-Si Incorporated) and Claudia Drayton | Form S-4/A (Exhibit 10.10) | 5/11/2021 | 333-253691 | |||||||||||
Offer Letter of Employment, dated as of June 1, 2015, by and between Q-SI Operations Inc. (formerly Quantum-Si Incorporated) and Michael P. McKenna, Ph.D. | Form S-4 (Exhibit 10.10) |
3/1/2021 | 333-253691 | ||||||||||
Offer Letter of Employment, dated as of November 4, 2020, by and between Q-SI Operations Inc. (formerly Quantum-Si Incorporated) and Christian LaPointe, Ph.D., as supplemented by the Letter Agreement, dated as of February 16, 2021, by and between Q-SI Operations Inc. and Christian LaPointe, Ph.D. | Form 10-K (Exhibit 10.12) | 3/1/2022 | 001-39486 | ||||||||
Technology and Services Exchange Agreement, dated as of February 17, 2021, by and among Q-SI Operations Inc. (formerly Quantum-Si Incorporated) and the participants named therein | Form 10-Q (Exhibit 10.1) | 11/15/2021 | 001-39486 | ||||||||
X | |||||||||||
Quantum-Si Incorporated 2021 Equity Incentive Plan | Form 8-K (Exhibit 10.13.1) | 6/15/2021 | 001-39486 | ||||||||
Form of Stock Option Agreement under 2021 Equity Incentive Plan | Form 8-K (Exhibit 10.13.2) | 6/15/2021 | 001-39486 |
Form of Restricted Stock Unit Agreement under 2021 Equity Incentive Plan | Form S-8 (Exhibit 99.3) | 9/2/2021 | 333-259271 | |||||||
Q-SI Operations Inc. 2013 Employee, Director and Consultant Equity Incentive Plan, as amended | Form 8-K (Exhibit 10.14.1) | 6/15/2021 | 001-39486 | |||||||
Form of Stock Option Agreement under 2013 Employee, Director and Consultant Equity Incentive Plan, as amended | Form 8-K (Exhibit 10.14.2) | 6/15/2021 | 001-39486 | |||||||
Form of Restricted Stock Unit Agreement under 2013 Employee, Director and Consultant Equity Incentive Plan, as amended | Form 8-K (Exhibit 10.14.3) | 6/15/2021 | 001-39486 | |||||||
Form of Performance-Based Non-Qualified Stock Option Agreement | Form S-8 (Exhibit 99.1) | 11/10/2022 | 333-268301 | |||||||
Nonemployee Director Compensation Policy | X | |||||||||
Form of Indemnification Agreement | Form 8-K (Exhibit 10.16) | 6/15/2021 | 001-39486 |
Amended and Restated Registration Rights Agreement, dated as of June 10, 2021, by and among Quantum-Si Incorporated (formerly HighCape Capital Acquisition Corp.) and certain of its securityholders | Form 8-K (Exhibit 10.17) | 6/15/2021 | 001-39486 | ||||||||||
Lease Agreement between Quantum-Si Incorporated and BP3-SD5 5510 Morehouse Drive LLC, dated June 18, 2021 | Form 8-K (Exhibit 10.1) | 6/24/2021 | 001-39486 | ||||||||||
Lease Agreement between Quantum-Si Incorporated and Winchester Office LLC, dated December 28, 2021 | Form 8-K (Exhibit 10.1) | 1/24/2022 | 001-39486 | ||||||||||
Quantum-Si Incorporated Executive Severance Plan | Form 8-K (Exhibit 10.1) | 7/6/2021 | 001-39486 | ||||||||||
List of Subsidiaries | X | ||||||||||||
Consent of Deloitte & Touche LLP | X | ||||||||||||
Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | X | ||||||||||||
Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | X | ||||||||||||
Certifications of the Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | X | ||||||||||||
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) | ||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | ||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
† | Certain of the exhibits and schedules to this Exhibit have been omitted in accordance with Regulation S-K Item 601(a)(5). The Registrant agrees to furnish a copy of all omitted exhibits and schedules to the SEC upon its request. |
+ | Management contract or compensatory plan or arrangement. |
* | The certifications attached as Exhibit 32 that accompany this Annual Report on Form 10-K are not deemed filed with the Securities and Exchange Commission and are not to be incorporated by reference into any filing of Quantum-Si Incorporated under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of such Form 10-K), irrespective of any general incorporation language contained in such filing. |
QUANTUM-SI INCORPORATED | ||
March | ||
By: | /s/ | |
Name | Title | Date | ||
/s/ Jeffrey Hawkins | March | |||
(Principal Executive Officer) | ||||
/s/ Claudia Drayton | Chief Financial Officer | March | ||
Claudia Drayton | (Principal Financial and Accounting Officer) | |||
/s/ Jonathan M. Rothberg, Ph.D. | Chairman of the Board | March 16, 2023 | ||
/s/ | Vikram Bajaj, Ph.D. | Director | March | |
Vikram Bajaj, Ph.D. | ||||
/s/ | Marijn Dekkers, Ph.D. | Director | March | |
Marijn Dekkers, Ph.D. | ||||
/s/ Ruth Fattori | Director | March 16, 2023 | ||
Ruth Fattori | ||||
/s/ Brigid A. Makes | Director | March 16, 2023 | ||
Brigid A. Makes | ||||
/s/ Michael Mina, M.D., Ph.D. | Director | March | ||
Michael Mina, M.D., Ph.D. | ||||
/s/ Kevin Rakin | Director | March | ||
Kevin Rakin | ||||
• | We tested the effectiveness of controls over management’s goodwill impairment evaluation, including those over the determination of fair value along with the completeness and accuracy of the underlying data and assumptions used. |
• | We evaluated the reasonableness of the Company’s forecasted revenue used in the fair value calculations by comparing the forecast to (1) |
December 31, 2021 | December 31, 2020 | December 31, 2022 | December 31, 2021 | |||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 35,785 | $ | 36,910 | $ | 84,319 | $ | 35,785 | ||||||||
Marketable securities | 435,519 | 0 | 266,990 | 435,519 | ||||||||||||
Prepaid expenses and other current assets | 5,868 | 948 | 6,873 | 5,868 | ||||||||||||
Total current assets | 477,172 | 37,858 | 358,182 | 477,172 | ||||||||||||
Property and equipment, net | 8,908 | 1,996 | 16,849 | 8,908 | ||||||||||||
Goodwill | 9,483 | 0 | - | 9,483 | ||||||||||||
Other assets | 690 | 0 | 697 | 690 | ||||||||||||
Other assets - related party | 0 | 738 | ||||||||||||||
Operating lease right-of-use assets | 6,973 | 0 | 15,757 | 6,973 | ||||||||||||
Total assets | $ | 503,226 | $ | 40,592 | $ | 391,485 | $ | 503,226 | ||||||||
Liabilities, convertible preferred stock and stockholders’ equity (deficit) | ||||||||||||||||
Liabilities and stockholders’ equity | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 3,393 | $ | 1,329 | $ | 3,903 | $ | 3,393 | ||||||||
Accrued expenses and other current liabilities | 7,276 | 1,425 | 10,434 | 7,276 | ||||||||||||
Short-term operating lease liabilities | 859 | 0 | 1,369 | 859 | ||||||||||||
Total current liabilities | 11,528 | 2,754 | 15,706 | 11,528 | ||||||||||||
Long-term liabilities: | ||||||||||||||||
Warrant liabilities | 7,239 | 0 | 996 | 7,239 | ||||||||||||
Notes payable | 0 | 1,749 | ||||||||||||||
Other long-term liabilities | 206 | 0 | - | 206 | ||||||||||||
Operating lease liabilities | 7,219 | 0 | 16,077 | 7,219 | ||||||||||||
Total liabilities | 26,192 | 4,503 | 32,779 | 26,192 | ||||||||||||
Commitments and contingencies (Note 17) | 0 | 0 | ||||||||||||||
Convertible preferred stock | ||||||||||||||||
Convertible preferred stock (Series A, B, C, D, and E) $0.0001 par value with an aggregate liquidation preference of $0 and $216 as of December 31, 2021 and December 31, 2020, respectively; 0 and 92,078,549 shares authorized as of December 31, 2021 and December 31, 2020, respectively; 0 and 90,789,268 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively | 0 | 195,814 | ||||||||||||||
Stockholders’ equity (deficit) | ||||||||||||||||
Class A Common stock, $0.0001 par value; 600,000,000 and 90,000,000 shares authorized as of December 31, 2021 and December 31, 2020, respectively; 118,025,410 and 5,378,287 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively | 12 | 1 | ||||||||||||||
Class B Common stock, $0.0001 par value; 27,000,000 and 0 shares authorized as of December 31, 2021 and December 31, 2020, respectively; 19,937,500 and 0 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively | 2 | 0 | ||||||||||||||
Commitments and contingencies (Note 15) | ||||||||||||||||
Stockholders’ equity | ||||||||||||||||
Class A Common stock, $0.0001 par value; 600,000,000 shares authorized as of December 31, 2022 and December 31, 2021; 120,006,757 and 118,025,410 shares issued and outstanding as of December 31, 2022 and December 31, 2021, respectively | 12 | 12 | ||||||||||||||
Class B Common stock, $0.0001 par value; 27,000,000 shares authorized as of December 31, 2022 and December 31, 2021; 19,937,500 shares issued and outstanding as of December 31, 2022 and December 31, 2021 | 2 | 2 | ||||||||||||||
Additional paid-in capital | 744,252 | 12,517 | 758,366 | 744,252 | ||||||||||||
Accumulated deficit | (267,232 | ) | (172,243 | ) | (399,674 | ) | (267,232 | ) | ||||||||
Total stockholders’ equity (deficit) | 477,034 | (159,725 | ) | |||||||||||||
Total liabilities, convertible preferred stock and stockholders’ equity (deficit) | $ | 503,226 | $ | 40,592 | ||||||||||||
Total stockholders’ equity | 358,706 | 477,034 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 391,485 | $ | 503,226 |
Years ended December 31, | Years Ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2022 | 2021 | 2020 | |||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Research and development | $ | 46,575 | $ | 27,555 | $ | 28,102 | $ | 72,062 | $ | 46,575 | $ | 27,555 | ||||||||||||
General and administrative | 46,377 | 7,984 | 7,884 | |||||||||||||||||||||
Sales and marketing | 3,956 | 1,152 | 634 | |||||||||||||||||||||
Selling, general and administrative | 42,296 | 50,333 | 9,136 | |||||||||||||||||||||
Goodwill impairment | 9,483 | - | - | |||||||||||||||||||||
Total operating expenses | 96,908 | 36,691 | 36,620 | 123,841 | 96,908 | 36,691 | ||||||||||||||||||
Loss from operations | (96,908 | ) | (36,691 | ) | (36,620 | ) | (123,841 | ) | (96,908 | ) | (36,691 | ) | ||||||||||||
Interest expense | (5 | ) | (9 | ) | 0 | - | (5 | ) | (9 | ) | ||||||||||||||
Dividend income | 2,549 | 97 | 823 | 5,301 | 2,549 | 97 | ||||||||||||||||||
Change in fair value of warrant liabilities | 4,379 | 0 | 0 | 6,243 | 4,379 | - | ||||||||||||||||||
Other (expense) income, net | (5,004 | ) | (10 | ) | 5 | |||||||||||||||||||
Other (expense), net | (20,145 | ) | (5,004 | ) | (10 | ) | ||||||||||||||||||
Loss before provision for income taxes | (94,989 | ) | (36,613 | ) | (35,792 | ) | (132,442 | ) | (94,989 | ) | (36,613 | ) | ||||||||||||
Provision for income taxes | 0 | 0 | 0 | - | - | - | ||||||||||||||||||
Net loss and comprehensive loss | $ | (94,989 | ) | $ | (36,613 | ) | $ | (35,792 | ) | $ | (132,442 | ) | $ | (94,989 | ) | $ | (36,613 | ) | ||||||
Net loss per common share attributable to common stockholders, basic and diluted | $ | (1.19 | ) | $ | (6.84 | ) | $ | (6.95 | ) | $ | (0.95 | ) | $ | (1.19 | ) | $ | (6.84 | ) | ||||||
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted | 79,578,540 | 5,355,463 | 5,146,977 | 139,255,131 | 79,578,540 | 5,355,463 |
Convertible preferred stock | Class A common stock | Class B common stock | Additional paid-in | Accumulated | Total stockholders’ equity | Convertible preferred stock | Class A common stock | Class B common stock | Additional | Total stockholders’ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | capital | deficit | (deficit) | Shares | Amount | Shares | Amount | Shares | Amount | paid-in capital | Accumulated deficit | equity (deficit) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance - January 1, 2019 | 80,810,340 | $ | 142,429 | 5,047,283 | $ | 1 | 0 | $ | 0 | $ | 7,699 | $ | (99,838 | ) | $ | (92,138 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance - January 1, 2020 | 84,201,570 | $ | 160,555 | 5,263,403 | $ | 1 | - | $ | - | $ | 10,530 | $ | (135,630 | ) | $ | (125,099 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | - | - | - | 0 | - | 0 | 0 | (35,792 | ) | (35,792 | ) | - | - | - | - | - | - | - | (36,613 | ) | (36,613 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Series E convertible preferred stock, net of issuance costs | 3,391,230 | 18,126 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6,587,698 | 35,259 | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued upon exercise of stock options | - | - | 216,120 | 0 | 0 | 0 | 116 | 0 | 116 | - | - | 114,884 | - | - | - | 63 | - | 63 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | - | - | - | 0 | - | 0 | 2,715 | 0 | 2,715 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance - December 31, 2019 | 84,201,570 | 160,555 | 5,263,403 | 1 | 0 | 0 | 10,530 | (135,630 | ) | (125,099 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | - | - | - | 0 | - | 0 | 0 | (36,613 | ) | (36,613 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Series E convertible preferred stock, net of issuance costs | 6,587,698 | 35,259 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued upon exercise of stock options | - | - | 114,884 | 0 | 0 | 0 | 63 | 0 | 63 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | - | - | - | 0 | - | 0 | 1,924 | 0 | 1,924 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | - | - | - | - | - | - | 1,924 | - | 1,924 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance - December 31, 2020 | 90,789,268 | 195,814 | 5,378,287 | 1 | 0 | 0 | 12,517 | (172,243 | ) | (159,725 | ) | 90,789,268 | 195,814 | 5,378,287 | 1 | - | - | 12,517 | (172,243 | ) | (159,725 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | - | - | - | 0 | - | 0 | 0 | (94,989 | ) | (94,989 | ) | - | - | - | - | - | - | - | (94,989 | ) | (94,989 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Series E convertible preferred stock, net of issuance costs | 0 | (4 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - | (4 | ) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued upon exercise of stock options and vesting of restricted stock units | - | - | 2,935,595 | 0 | 0 | 0 | 5,618 | 0 | 5,618 | - | - | 2,935,595 | - | - | - | 5,618 | - | 5,618 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of the convertible preferred stock into Class A and Class B common stock | (90,789,268 | ) | (195,810 | ) | 52,466,941 | 5 | 19,937,500 | 2 | 195,803 | 0 | 195,810 | (90,789,268 | ) | (195,810 | ) | 52,466,941 | 5 | 19,937,500 | 2 | 195,803 | - | 195,810 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net equity infusion from the Business Combination | - | - | 56,708,872 | 6 | 0 | 0 | 501,164 | 0 | 501,170 | - | - | 56,708,872 | 6 | - | - | 501,164 | - | 501,170 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Majelac Technologies LLC Acquisition | - | - | 535,715 | 0 | 0 | 0 | 4,232 | 0 | 4,232 | - | - | 535,715 | - | - | - | 4,232 | - | 4,232 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | - | - | - | 0 | - | 0 | 24,918 | 0 | 24,918 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | - | - | - | - | - | - | 24,918 | - | 24,918 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance - December 31, 2021 | 0 | $ | 0 | 118,025,410 | $ | 12 | 19,937,500 | $ | 2 | $ | 744,252 | $ | (267,232 | ) | $ | 477,034 | - | - | 118,025,410 | 12 | 19,937,500 | 2 | 744,252 | (267,232 | ) | 477,034 | ||||||||||||||||||||||||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | - | (132,442 | ) | (132,442 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued upon exercise of stock options and vesting of restricted stock units | - | - | 1,921,824 | - | - | - | 2,757 | - | 2,757 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Majelac Technologies LLC Acquisition | - | - | 59,523 | - | - | - | 151 | - | 151 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | - | - | - | - | - | - | 11,206 | - | 11,206 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance - December 31, 2022 | - | $ | - | 120,006,757 | $ | 12 | 19,937,500 | $ | 2 | $ | 758,366 | $ | (399,674 | ) | $ | 358,706 |
Years ended December 31, | Years Ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2022 | 2021 | 2020 | |||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net loss | $ | (94,989 | ) | $ | (36,613 | ) | $ | (35,792 | ) | $ | (132,442 | ) | $ | (94,989 | ) | $ | (36,613 | ) | ||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||||||||||
Depreciation | 1,041 | 894 | 780 | |||||||||||||||||||||
Unrealized losses of marketable securities | 5,023 | 0 | 0 | |||||||||||||||||||||
Depreciation and amortization | 2,584 | 1,041 | 894 | |||||||||||||||||||||
Loss on marketable securities (realized and unrealized) | 20,603 | 5,023 | - | |||||||||||||||||||||
Loss on disposal of fixed assets | 70 | 2 | 1 | 91 | 70 | 2 | ||||||||||||||||||
Goodwill impairment | 9,483 | - | - | |||||||||||||||||||||
Change in fair value of warrant liabilities | (4,379 | ) | 0 | 0 | (6,243 | ) | (4,379 | ) | - | |||||||||||||||
Change in fair value of contingent consideration | 36 | 0 | 0 | 176 | 36 | - | ||||||||||||||||||
Stock-based compensation expense | 24,918 | 1,924 | 2,715 | |||||||||||||||||||||
Write-off of intellectual property | 0 | 0 | 500 | |||||||||||||||||||||
Change in fair value of stock consideration | (320 | ) | - | - | ||||||||||||||||||||
Stock-based compensation | 11,206 | 24,918 | 1,924 | |||||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||
Prepaid expenses and other current assets | (4,893 | ) | (12 | ) | 825 | (1,005 | ) | (4,893 | ) | (12 | ) | |||||||||||||
Other assets | (690 | ) | 0 | 0 | (7 | ) | (690 | ) | - | |||||||||||||||
Other assets - related party | 738 | 256 | (41 | ) | - | 738 | 256 | |||||||||||||||||
Operating lease right-of-use assets | (6,973 | ) | 0 | 0 | (8,784 | ) | (6,973 | ) | - | |||||||||||||||
Accounts payable | 709 | 536 | (270 | ) | 721 | 709 | 536 | |||||||||||||||||
Accrued expenses and other current liabilities | 4,498 | 440 | 574 | 4,009 | 4,498 | 440 | ||||||||||||||||||
Short-term operating lease liabilities | 859 | 0 | 0 | |||||||||||||||||||||
Operating lease liabilities | 7,219 | 0 | 0 | 9,368 | 8,078 | - | ||||||||||||||||||
Net cash used in operating activities | $ | (66,813 | ) | $ | (32,573 | ) | $ | (30,708 | ) | $ | (90,560 | ) | $ | (66,813 | ) | $ | (32,573 | ) | ||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Purchases of property and equipment | (5,763 | ) | (461 | ) | (1,241 | ) | (10,741 | ) | (5,763 | ) | (461 | ) | ||||||||||||
Purchases of marketable securities | (440,542 | ) | 0 | 0 | (834 | ) | (440,542 | ) | - | |||||||||||||||
Sales of marketable securities | 148,760 | - | - | |||||||||||||||||||||
Business acquisition | (4,632 | ) | 0 | 0 | - | (4,632 | ) | - | ||||||||||||||||
Net cash used in investing activities | $ | (450,937 | ) | $ | (461 | ) | $ | (1,241 | ) | |||||||||||||||
Net cash provided by (used in) investing activities | $ | 137,185 | $ | (450,937 | ) | $ | (461 | ) | ||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Proceeds from exercise of stock options | 5,618 | 63 | 116 | 2,757 | 5,618 | 63 | ||||||||||||||||||
Proceeds from issuance of Series E convertible preferred stock | 0 | 35,311 | 18,177 | - | - | 35,311 | ||||||||||||||||||
Net proceeds from equity infusion from the Business Combination | 512,788 | 0 | 0 | - | 512,788 | - | ||||||||||||||||||
Proceeds from issuance of notes payable | 0 | 1,749 | 0 | - | - | 1,749 | ||||||||||||||||||
Payment of notes payable | (1,749 | ) | 0 | 0 | - | (1,749 | ) | - | ||||||||||||||||
Stock issuance costs for Series E convertible preferred stock | (4 | ) | (52 | ) | (51 | ) | - | (4 | ) | (52 | ) | |||||||||||||
Payment of contingent consideration - business acquisition | (348 | ) | - | - | ||||||||||||||||||||
Payment of deferred consideration - business acquisition | (500 | ) | - | - | ||||||||||||||||||||
Principal payments under finance lease obligations | (28 | ) | (57 | ) | (25 | ) | - | (28 | ) | (57 | ) | |||||||||||||
Net cash provided by financing activities | $ | 516,625 | $ | 37,014 | $ | 18,217 | $ | 1,909 | $ | 516,625 | $ | 37,014 | ||||||||||||
Net (decrease) increase in cash and cash equivalents | (1,125 | ) | 3,980 | (13,732 | ) | |||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 48,534 | (1,125 | ) | 3,980 | ||||||||||||||||||||
Cash and cash equivalents at beginning of period | 36,910 | 32,930 | 46,662 | 35,785 | 36,910 | 32,930 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | 35,785 | $ | 36,910 | $ | 32,930 | $ | 84,319 | $ | 35,785 | $ | 36,910 | ||||||||||||
Supplemental disclosure of cash flow information: | ||||||||||||||||||||||||
Cash received from exchange of research and development tax credits | $ | 173 | $ | 0 | $ | 352 | $ | - | $ | 173 | $ | - | ||||||||||||
Supplemental disclosure of noncash information: | ||||||||||||||||||||||||
Noncash acquisition of property and equipment | $ | 1,385 | $ | 30 | $ | 260 | $ | 1,260 | $ | 1,385 | $ | 30 | ||||||||||||
Forgiveness of related party promissory notes | $ | 150 | $ | 20 | $ | 50 | $ | - | $ | 150 | $ | 20 | ||||||||||||
Noncash equity issuance - business acquisition | $ | 4,232 | $ | 0 | $ | 0 | $ | 151 | $ | 4,232 | $ | - | ||||||||||||
Noncash equity related warrants from the Business Combination | $ | 11,618 | $ | 0 | $ | 0 | $ | - | $ | 11,618 | $ | - | ||||||||||||
Conversion of the convertible preferred stock into Class A and Class B common stock | $ | 195,810 | $ | 0 | $ | 0 | $ | - | $ | 195,810 | $ | - | ||||||||||||
Noncash contingent consideration and holdbacks - business acquisition | $ | 1,552 | $ | 0 | $ | 0 | $ | - | $ | 1,552 | $ | - |
● | valuation allowances with respect to deferred tax assets; |
● | valuation for acquisitions; |
● | valuation of goodwill; |
● | assumptions used for leases; |
● | valuation of warrant liabilities; and |
● | assumptions underlying the fair value used in the calculation of the stock-based compensation. |
Property and equipment | Estimated useful life | |
Laboratory and production equipment | ||
Computer equipment | 3-5 years | |
Software | 3 years | |
Furniture and fixtures | 7 years |
Purchase Price Allocation | Purchase Price Allocation | |||||||
Prepaid expenses and other current assets | $ | 27 | $ | 27 | ||||
Property and equipment, net | 906 | 906 | ||||||
Goodwill | 9,483 | 9,483 | ||||||
Total | $ | 10,416 | $ | 10,416 |
Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities that an entity has the ability to access. |
Level 2 - Valuations based on quoted prices for similar assets or liabilities, quoted prices for identical assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. |
Level 3 - Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Fair Value Measurement Level | Fair Value Measurement Level | |||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
December 31, 2021: | ||||||||||||||||||||||||||||||||
December 31, 2022: | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Mutual funds - Cash and cash equivalents | $ | 33,965 | $ | 33,965 | $ | 0 | $ | 0 | ||||||||||||||||||||||||
Mutual funds - Marketable securities | 435,519 | 435,519 | 0 | 0 | ||||||||||||||||||||||||||||
Cash and cash equivalents - Money Market | $ | 83,079 | $ | 83,079 | $ | - | $ | - | ||||||||||||||||||||||||
Marketable securities | 266,990 | 266,990 | - | - | ||||||||||||||||||||||||||||
Total assets at fair value on a recurring basis | $ | 469,484 | $ | 469,484 | $ | 0 | $ | 0 | $ | 350,069 | $ | 350,069 | $ | - | $ | - | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Public Warrants | $ | 6,900 | $ | 6,900 | $ | 0 | $ | 0 | $ | 958 | $ | 958 | $ | - | $ | - | ||||||||||||||||
Private Warrants | 339 | 0 | 0 | 339 | 38 | - | - | 38 | ||||||||||||||||||||||||
Total liabilities at fair value on a recurring basis | $ | 7,239 | $ | 6,900 | $ | 0 | $ | 339 | $ | 996 | $ | 958 | $ | - | $ | 38 |
Fair Value Measurement Level | Fair Value Measurement Level | |||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
December 31, 2020: | ||||||||||||||||||||||||||||||||
December 31, 2021: | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Mutual funds - Cash and cash equivalents | $ | 36,040 | $ | 36,040 | $ | 0 | $ | 0 | ||||||||||||||||||||||||
Cash and cash equivalents - Money Market | $ | 33,965 | $ | 33,965 | $ | - | $ | - | ||||||||||||||||||||||||
Marketable securities | 435,519 | 435,519 | - | - | ||||||||||||||||||||||||||||
Total assets at fair value on a recurring basis | $ | 36,040 | $ | 36,040 | $ | 0 | $ | 0 | $ | 469,484 | $ | 469,484 | $ | - | $ | - | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Notes payable | $ | 1,749 | $ | 0 | $ | 1,749 | $ | 0 | ||||||||||||||||||||||||
Public Warrants | $ | 6,900 | $ | 6,900 | $ | - | $ | - | ||||||||||||||||||||||||
Private Warrants | 339 | - | - | 339 | ||||||||||||||||||||||||||||
Total liabilities at fair value on a recurring basis | $ | 1,749 | $ | 0 | $ | 1,749 | $ | 0 | $ | 7,239 | $ | 6,900 | $ | - | $ | 339 |
December 31, 2021 | December 31, 2020 | December 31, 2022 | December 31, 2021 | |||||||||||||
Laboratory and production equipment | $ | 7,465 | $ | 4,245 | $ | 14,031 | $ | 7,465 | ||||||||
Computer equipment | 637 | 765 | 1,073 | 637 | ||||||||||||
Software | 156 | 136 | 188 | 156 | ||||||||||||
Furniture and fixtures | 125 | 47 | 218 | 125 | ||||||||||||
Leasehold improvements | 790 | 0 | 1,308 | 790 | ||||||||||||
Construction in process | 3,610 | 35 | 6,234 | 3,610 | ||||||||||||
12,783 | 5,228 | |||||||||||||||
Less: Accumulated depreciation | (3,875 | ) | (3,232 | ) | ||||||||||||
Property and equipment, gross | 23,052 | 12,783 | ||||||||||||||
Less: Accumulated depreciation and amortization | (6,203 | ) | (3,875 | ) | ||||||||||||
Property and equipment, net | $ | 8,908 | $ | 1,996 | $ | 16,849 | $ | 8,908 |
December 31, 2021 | December 31, 2020 | December 31, 2022 | December 31, 2021 | |||||||||||||
Employee compensation | $ | 2,680 | $ | 511 | ||||||||||||
Employee compensation and benefits | $ | 5,548 | $ | 2,680 | ||||||||||||
Contracted services | 2,606 | 399 | 3,616 | 2,606 | ||||||||||||
Business acquisition costs and contingencies | 1,331 | 0 | 343 | 1,331 | ||||||||||||
Legal fees | 636 | 447 | 839 | 636 | ||||||||||||
Other | 23 | 68 | 88 | 23 | ||||||||||||
Total accrued expenses and other current liabilities | $ | 7,276 | $ | 1,425 | $ | 10,434 | $ | 7,276 |
Years Ended December 31, | ||||||||||||
Year Ended December 31, 2021 | 2022 | 2021 | ||||||||||
Operating lease cost | $ | 630 | $ | 3,182 | $ | 630 | ||||||
Short-term lease cost | 524 | 445 | 524 | |||||||||
Variable lease cost | 63 | 1,370 | 63 | |||||||||
Total lease cost | $ | 1,217 | $ | 4,997 | $ | 1,217 |
December 31, | December 31, | |||||||
2022 | 2021 | |||||||
Weighted-average remaining lease term (years) | 7.3 | 5.9 | ||||||
Weighted-average discount rate | 7.9 | % | 7.0 | % |
Years Ended December 31, | |||||||||||
Operating Leases | 2022 | 2021 | |||||||||
Operating cash paid to settle operating lease liabilities | $ | 293 | $ | 2,390 | $ | 293 | |||||
Right-of-use assets obtained in exchange for lease liabilities | $ | 7,388 | $ | 10,033 | $ | 7,388 |
Operating Leases | ||||
2022 | $ | 1,373 | ||
2023 | 1,650 | |||
2024 | 1,694 | |||
2025 | 1,739 | |||
2026 | 1,754 | |||
Thereafter | 1,647 | |||
Total undiscounted lease payments | $ | 9,857 | ||
Less: Imputed interest | 1,779 | |||
Total lease liabilities | $ | 8,078 |
Operating Leases | ||||
2023 | $ | 4,284 | ||
2024 | 4,394 | |||
2025 | 4,507 | |||
2026 | 4,590 | |||
2027 | 4,554 | |||
Thereafter | 12,811 | |||
Total undiscounted lease payments | $ | 35,140 | ||
Less: Imputed interest | 8,590 | |||
Less: Lease incentives (1) | 9,104 | |||
Total lease liabilities | $ | 17,446 |
(1) | Includes lease incentives that may be realized in 2023 for the costs of leasehold improvements. |
Three Months Ended March 31, 2021 | Three Months Ended June 30, 2021 | Three Months Ended September 30, 2021 | ||||||||||
Operating lease cost | $ | 0 | $ | 0 | $ | 240 | ||||||
Short-term lease cost | 122 | 127 | 133 | |||||||||
Variable lease cost | 0 | 0 | 21 | |||||||||
Total lease cost | $ | 122 | $ | 127 | $ | 394 |
September 30, 2021 | ||||
Operating lease right-of-use assets | $ | 6,443 | ||
Short-term operating lease liabilities | 609 | |||
Operating lease liabilities | 6,842 | |||
Weighted-average remaining lease term (years) | 6.2 | |||
Weighted-average discount rate | 7.0 | % |
Class | Year of Class Issuance | Issuance Price per Share | Shares Authorized | Shares Issued and Outstanding | Total Proceeds or Exchange Value | Issuance Costs | Net Carrying Value | Initial Liquidation Price per Share | |||||||||||||||||||||||
Series A | 2013 | $ | 0.04 | 25,000,000 | 25,000,000 | $ | 1,000 | $ | 0 | $ | 1,000 | $ | 0.80 | ||||||||||||||||||
Series B | 2015 | 0.80 | 31,250,000 | 31,250,000 | 25,000 | 0 | 25,000 | 0.80 | |||||||||||||||||||||||
Series C | 2015-2016 | 4.61 | 8,164,323 | 8,164,323 | 37,638 | 328 | 37,310 | 4.61 | |||||||||||||||||||||||
Series D | 2017 | 4.71 | 12,738,853 | 12,738,853 | 60,000 | 414 | 59,586 | 4.71 | |||||||||||||||||||||||
Series E | 2018 - 2020 | 5.36 | 14,925,373 | 13,636,092 | 73,089 | 171 | 72,918 | 5.36 | |||||||||||||||||||||||
92,078,549 | 90,789,268 |
Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | |||||||||||||
Outstanding at December 31, 2020 | 7,369,541 | $ | 2.37 | 6.77 | $ | 4,094 | ||||||||||
Granted | 3,514,510 | 8.89 | ||||||||||||||
Exercised | (2,661,252 | ) | 2.11 | |||||||||||||
Forfeited | (495,827 | ) | 6.84 | |||||||||||||
Outstanding at December 31, 2021 | 7,726,972 | $ | 5.14 | 7.58 | $ | 24,511 | ||||||||||
Options exercisable at December 31, 2021 | 4,023,711 | 2.83 | 6.18 | $ | 20,499 | |||||||||||
Vested and expected to vest at December 31, 2021 | 7,410,522 | $ | 5.03 | 7.51 | $ | 24,169 |
Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | |||||||||||||
Outstanding at December 31, 2021 | 7,726,972 | $ | 5.14 | 7.58 | $ | 24,511 | ||||||||||
Granted | 14,271,330 | 3.04 | ||||||||||||||
Exercised | (1,123,249 | ) | 2.45 | |||||||||||||
Forfeited | (1,447,298 | ) | 5.43 | |||||||||||||
Outstanding at December 31, 2022 | 19,427,755 | $ | 3.69 | 8.68 | $ | 378 | ||||||||||
Options exercisable at December 31, 2022 | 4,699,029 | $ | 3.95 | 6.26 | $ | 333 | ||||||||||
Vested and expected to vest at December 31, 2022 | 16,930,158 | $ | 3.70 | 8.57 | $ | 370 |
| | 2021 | | 2020 | 2019 | |
Risk-free interest rate | | 0.9% – 1.4% | | 0.3% – 0.6% | 1.4% – 1.9% | |
Expected dividend yield | | 0% | | 0% | 0% | |
Expected term | | 5.5 years – 6.3 years | | 5.0 years – 6.0 years | 5.0 years – 6.2 years | |
Expected volatility | | 54% - 70% | | 70% | 70% |
| | 2022 | | 2021 | 2020 | |
Risk-free interest rate | | 1.7% – 4.2% | | 0.9% – 1.4% | 0.3% – 0.6% | |
Expected dividend yield | | 0% | | 0% | 0% | |
Expected term | | 5.5 years – 6.4 years | | 5.5 years – 6.3 years | 5.0 years – 6.0 years | |
Expected volatility | | 58% - 64% | | 54% - 70% | 70% |
Number of Shares Underlying RSUs | Weighted Average Grant-Date Fair Value | Number of Shares Underlying RSUs | Weighted Average Grant-Date Fair Value | |||||||||||||
Outstanding non-vested RSUs at December 31, 2020 | 0 | $ | 0 | |||||||||||||
Outstanding non-vested RSUs at December 31, 2021 | 4,586,972 | $ | 8.00 | |||||||||||||
Granted | 4,861,315 | 8.03 | 66,666 | 3.00 | ||||||||||||
Vested | (274,343 | ) | 8.53 | (798,575 | ) | 8.24 | ||||||||||
Forfeited | 0 | 0 | (1,836,614 | ) | 7.26 | |||||||||||
Outstanding non-vested RSUs at December 31, 2021 | 4,586,972 | $ | 8.00 | |||||||||||||
Outstanding non-vested RSUs at December 31, 2022 | 2,018,449 | $ | 8.41 |
Years ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Research and development | $ | 5,718 | $ | 1,290 | $ | 2,163 | ||||||
General and administrative | 18,365 | 324 | 354 | |||||||||
Sales and marketing | 835 | 310 | 198 | |||||||||
Total stock-based compensation expense | $ | 24,918 | $ | 1,924 | $ | 2,715 |
Years Ended December 31, | ||||||||||||
2022 | 2021 | 2020 | ||||||||||
Research and development | $ | 4,548 | $ | 5,718 | $ | 1,290 | ||||||
Selling, general and administrative | 6,658 | 19,200 | 634 | |||||||||
Total stock-based compensation | $ | 11,206 | $ | 24,918 | $ | 1,924 |
Years ended December 31, | Years Ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2022 | 2021 | 2020 | |||||||||||||||||||
Numerator | ||||||||||||||||||||||||
Net loss | $ | (94,989 | ) | $ | (36,613 | ) | $ | (35,792 | ) | $ | (132,442 | ) | $ | (94,989 | ) | $ | (36,613 | ) | ||||||
Numerator for basic and diluted EPS - loss attributable to common stockholders | $ | (94,989 | ) | $ | (36,613 | ) | $ | (35,792 | ) | $ | (132,442 | ) | $ | (94,989 | ) | $ | (36,613 | ) | ||||||
Denominator | ||||||||||||||||||||||||
Common stock | 79,578,540 | 5,355,463 | 5,146,977 | 139,255,131 | 79,578,540 | 5,355,463 | ||||||||||||||||||
Denominator for basic and diluted EPS - weighted-average common stock | 79,578,540 | 5,355,463 | 5,146,977 | 139,255,131 | 79,578,540 | 5,355,463 | ||||||||||||||||||
Basic and diluted net loss per share | $ | (1.19 | ) | $ | (6.84 | ) | $ | (6.95 | ) | $ | (0.95 | ) | $ | (1.19 | ) | $ | (6.84 | ) |
Years ended December 31, | Years Ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2022 | 2021 | 2020 | |||||||||||||||||||
Outstanding options to purchase common stock | 7,726,972 | 7,369,541 | 7,890,184 | 19,427,755 | 7,726,972 | 7,369,541 | ||||||||||||||||||
Outstanding restricted stock units | 4,586,972 | 0 | 0 | 2,018,449 | 4,586,972 | - | ||||||||||||||||||
Outstanding warrants | 3,968,319 | 0 | 0 | 3,968,319 | 3,968,319 | - | ||||||||||||||||||
Outstanding convertible preferred stock (Series A through E) | 0 | 90,789,268 | 84,201,570 | - | - | 90,789,268 | ||||||||||||||||||
16,282,263 | 98,158,809 | 92,091,754 | 25,414,523 | 16,282,263 | 98,158,809 |
• | if, and only if, the closing price of the Company’s common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the warrant holders. |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2022 | 2021 | 2020 | |||||||||||||||||||
Statutory tax rate | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | ||||||||||||
State taxes, net of federal benefit | 7.0 | 6.7 | 6.5 | 4.1 | 7.0 | 6.7 | ||||||||||||||||||
Federal research and development credit | 2.8 | 3.0 | 2.0 | 1.9 | 2.8 | 3.0 | ||||||||||||||||||
Stock-based compensation expense | 1.6 | (0.7 | ) | (0.9 | ) | |||||||||||||||||||
Stock-based compensation | (0.5 | ) | 1.6 | (0.7 | ) | |||||||||||||||||||
Other | 0.6 | (0.1 | ) | 0.4 | 0.9 | 0.6 | (0.1 | ) | ||||||||||||||||
Valuation allowance | (33.0 | ) | (29.9 | ) | (29.0 | ) | (27.4 | ) | (33.0 | ) | (29.9 | ) | ||||||||||||
Effective tax rate | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % |
As of December 31, | As of December 31, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Deferred tax assets | ||||||||||||||||
Net operating loss carryforwards | $ | 63,819 | $ | 42,589 | $ | 77,008 | $ | 63,819 | ||||||||
Tax credit carryforwards | 10,203 | 7,178 | 13,358 | 10,203 | ||||||||||||
Stock-based compensation expense | 6,673 | 1,586 | ||||||||||||||
Stock-based compensation | 7,309 | 6,673 | ||||||||||||||
Operating lease liabilities | 2,184 | 0 | 4,344 | 2,184 | ||||||||||||
Loss on marketable securities (unrealized) | 5,724 | 1,358 | ||||||||||||||
Section 174 | 12,005 | - | ||||||||||||||
Other | 2,218 | 182 | 3,925 | 860 | ||||||||||||
Total deferred tax assets | $ | 85,097 | $ | 51,535 | $ | 123,673 | $ | 85,097 | ||||||||
Deferred tax liabilities | ||||||||||||||||
Operating lease right-of-use assets | $ | (2,093 | ) | $ | 0 | $ | (4,258 | ) | $ | (2,093 | ) | |||||
Property and equipment | (245 | ) | (161 | ) | (381 | ) | (245 | ) | ||||||||
Other | (15 | ) | 0 | - | (15 | ) | ||||||||||
Total deferred tax liabilities | $ | (2,353 | ) | $ | (161 | ) | $ | (4,639 | ) | $ | (2,353 | ) | ||||
Net deferred tax assets | $ | 82,744 | $ | 51,374 | $ | 119,034 | $ | 82,744 | ||||||||
Valuation allowance | (82,744 | ) | (51,374 | ) | (119,034 | ) | (82,744 | ) | ||||||||
Net deferred tax assets (liabilities) | $ | 0 | $ | 0 | $ | - | $ | - |
Amount | Begin to Expire In | |||||||
Tax net operating loss carryforwards: | ||||||||
Federal (pre-2018 NOLs) | $ | 65,494 | 2033 | |||||
Federal (post-2017 NOLs) | 171,615 | No Expiration | ||||||
State | 239,013 | 2033 |
Tax credit carryforwards: | ||||||||
Federal research and development | 8,211 | 2033 | ||||||
Connecticut research and development | 2,477 | N/A | ||||||
Connecticut other credits | 53 | 2022 |
Amount | Begin to Expire In | |||||||
Tax net operating loss carryforwards: | ||||||||
Federal (pre-2018 NOLs) | $ | 65,494 | 2033 | |||||
Federal (post-2017 NOLs) | 219,600 | No Expiration | ||||||
State | 288,685 | 2033 |
Tax carryforwards: | ||||||||
Federal research and development | 10,769 | 2033 | ||||||
Connecticut research and development | 3,119 | N/A | ||||||
Connecticut other credits | 18 | 2023 | ||||||
Federal contribution carryforward | 30 | 2023 | ||||||
CA research and development | 140 | N/A |