☒ | QUARTERLY 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) | (IRS 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 | ☐ |
Page | ||
3 | ||
Part I | 4 | |
Item 1. | 4 | |
4 | ||
5 | ||
6 | ||
8 | ||
9 | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Part II | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
● | the ability to recognize the anticipated benefits of the Business Combination, which may be affected by, among other things, competition and our ability to grow and manage growth profitably and retain our key employees; |
● | 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 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. |
March 31, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | |||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 34,984 | $ | 35,785 | $ | 81,272 | $ | 35,785 | ||||||||
Marketable securities | 399,810 | 435,519 | 319,398 | 435,519 | ||||||||||||
Prepaid expenses and other current assets | 4,985 | 5,868 | 4,436 | 5,868 | ||||||||||||
Total current assets | 439,779 | 477,172 | 405,106 | 477,172 | ||||||||||||
Property and equipment, net | 11,151 | 8,908 | 12,562 | 8,908 | ||||||||||||
Goodwill | 9,483 | 9,483 | 9,483 | 9,483 | ||||||||||||
Other assets | 690 | 690 | 690 | 690 | ||||||||||||
Operating lease right-of-use assets | 15,035 | 6,973 | 15,411 | 6,973 | ||||||||||||
Total assets | $ | 476,138 | $ | 503,226 | $ | 443,252 | $ | 503,226 | ||||||||
Liabilities and stockholders’ equity | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 4,293 | $ | 3,393 | $ | 2,370 | $ | 3,393 | ||||||||
Accrued expenses and other current liabilities | 8,779 | 7,276 | 7,912 | 7,276 | ||||||||||||
Short-term operating lease liabilities | 973 | 859 | 1,150 | 859 | ||||||||||||
Total current liabilities | 14,045 | 11,528 | 11,432 | 11,528 | ||||||||||||
Long-term liabilities: | ||||||||||||||||
Warrant liabilities | 4,592 | 7,239 | 2,255 | 7,239 | ||||||||||||
Other long-term liabilities | 240 | 206 | 0 | 206 | ||||||||||||
Operating lease liabilities | 15,386 | 7,219 | 16,070 | 7,219 | ||||||||||||
Total liabilities | 34,263 | 26,192 | 29,757 | 26,192 | ||||||||||||
Commitments and contingencies (Note 14) | 0 | 0 | ||||||||||||||
Stockholders’ equity | ||||||||||||||||
Class A Common stock, $0.0001 par value; 600,000,000 shares authorized as of March 31, 2022 and December 31, 2021; 118,972,397 and 118,025,410 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively | 12 | 12 | ||||||||||||||
Class B Common stock, $0.0001 par value; 27,000,000 shares authorized as of March 31, 2022 and December 31, 2021; 19,937,500 shares issued and outstanding as of March 31, 2022 and December 31, 2021 | 2 | 2 | ||||||||||||||
Class A Common stock, $0.0001 par value; 600,000,000 shares authorized as of June 30, 2022 and December 31, 2021; 119,244,128 and 118,025,410 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively | 12 | 12 | ||||||||||||||
Class B Common stock, $0.0001 par value; 27,000,000 shares authorized as of June 30, 2022 and December 31, 2021; 19,937,500 shares issued and outstanding as of June 30, 2022 and December 31, 2021 | 2 | 2 | ||||||||||||||
Additional paid-in capital | 744,268 | 744,252 | 748,302 | 744,252 | ||||||||||||
Accumulated deficit | (302,407 | ) | (267,232 | ) | (334,821 | ) | (267,232 | ) | ||||||||
Total stockholders’ equity | 441,875 | 477,034 | 413,495 | 477,034 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 476,138 | $ | 503,226 | $ | 443,252 | $ | 503,226 |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Research and development | $ | 18,771 | $ | 7,972 | $ | 18,459 | $ | 13,114 | $ | 37,230 | $ | 21,086 | ||||||||||||
Selling, general and administrative | 8,369 | 3,807 | 11,741 | 19,050 | 20,110 | 22,857 | ||||||||||||||||||
Total operating expenses | 27,140 | 11,779 | 30,200 | 32,164 | 57,340 | 43,943 | ||||||||||||||||||
Loss from operations | (27,140 | ) | (11,779 | ) | (30,200 | ) | (32,164 | ) | (57,340 | ) | (43,943 | ) | ||||||||||||
Interest expense | 0 | (5 | ) | 0 | (5 | ) | ||||||||||||||||||
Dividend income | 855 | 0 | 1,052 | 2 | 1,907 | 2 | ||||||||||||||||||
Change in fair value of warrant liabilities | 2,647 | 0 | 2,337 | (3,533 | ) | 4,984 | (3,533 | ) | ||||||||||||||||
Other expense, net | (11,537 | ) | 0 | |||||||||||||||||||||
Other (expense) income, net | (5,603 | ) | 3 | (17,140 | ) | 3 | ||||||||||||||||||
Loss before provision for income taxes | (35,175 | ) | (11,779 | ) | (32,414 | ) | (35,697 | ) | (67,589 | ) | (47,476 | ) | ||||||||||||
Provision for income taxes | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Net loss and comprehensive loss | $ | (35,175 | ) | $ | (11,779 | ) | $ | (32,414 | ) | $ | (35,697 | ) | $ | (67,589 | ) | $ | (47,476 | ) | ||||||
Net loss per common share attributable to common stockholders, basic and diluted | $ | (0.25 | ) | $ | (2.13 | ) | $ | (0.23 | ) | $ | (0.97 | ) | $ | (0.49 | ) | $ | (2.23 | ) | ||||||
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted | 138,619,929 | 5,528,551 | 139,000,261 | 36,890,502 | 138,811,146 | 21,296,162 |
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 paid-in | Accumulated | Total stockholders’ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | capital | deficit | (deficit) | Shares | Amount | Shares | Amount | Shares | Amount | capital | deficit | equity (deficit) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | 0 | $ | 0 | $ | 12,517 | $ | (172,243 | ) | $ | (159,725 | ) | ||||||||||||||||||||||||||||||||||||||
Net loss | - | - | - | 0 | - | 0 | 0 | (11,779 | ) | (11,779 | ) | - | - | - | 0 | - | 0 | 0 | (11,779 | ) | (11,779 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Series E convertible preferred stock, net of issuance costs | 0 | (4 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued upon exercise of stock options and vesting of restricted stock units | - | - | 581,237 | 0 | 0 | 0 | 999 | 0 | 999 | - | - | 581,237 | 0 | 0 | 0 | 999 | 0 | 999 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | - | - | - | 0 | - | 0 | 457 | 0 | 457 | - | - | - | 0 | - | 0 | 457 | 0 | 457 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance - March 31, 2021 | 90,789,268 | $ | 195,810 | 5,959,524 | $ | 1 | 0 | $ | 0 | $ | 13,973 | $ | (184,022 | ) | $ | (170,048 | ) | 90,789,268 | $ | 195,810 | 5,959,524 | $ | 1 | 0 | $ | 0 | $ | 13,973 | $ | (184,022 | ) | $ | (170,048 | ) | ||||||||||||||||||||||||||||||||||||||
Net loss | - | - | - | 0 | - | 0 | 0 | (35,697 | ) | (35,697 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued upon exercise of stock options and vesting of restricted stock units | - | - | 1,327,823 | 0 | 0 | 0 | 2,712 | 0 | 2,712 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net equity infusion from the Business Combination | - | - | 56,708,872 | 6 | 0 | 0 | 501,166 | 0 | 501,172 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | - | - | - | 0 | - | 0 | 9,987 | 0 | 9,987 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance - June 30, 2021 | 0 | $ | 0 | 116,463,160 | $ | 12 | 19,937,500 | $ | 2 | $ | 723,641 | $ | (219,719 | ) | $ | 503,936 |
Class A common stock | Class B common stock | Additional paid-in | Accumulated | Total stockholders’ equity | Class A common stock | Class B common stock | Additional paid-in | Accumulated | Total stockholders’ | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | capital | deficit | (deficit) | Shares | Amount | Shares | Amount | capital | deficit | equity (deficit) | |||||||||||||||||||||||||||||||||||||||||||
Balance - December 31, 2021 | 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 | - | 0 | - | 0 | 0 | (35,175 | ) | (35,175 | ) | - | 0 | - | 0 | 0 | (35,175 | ) | (35,175 | ) | ||||||||||||||||||||||||||||||||||||||
Common stock issued upon exercise of stock options and vesting of restricted stock units | 946,987 | 0 | 0 | 0 | 730 | 0 | 730 | 946,987 | 0 | 0 | 0 | 730 | 0 | 730 | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | - | 0 | - | 0 | (714 | ) | 0 | (714 | ) | - | 0 | - | 0 | (714 | ) | 0 | (714 | ) | ||||||||||||||||||||||||||||||||||||||
Balance - March 31, 2022 | 118,972,397 | $ | 12 | 19,937,500 | $ | 2 | $ | 744,268 | $ | (302,407 | ) | $ | 441,875 | 118,972,397 | $ | 12 | 19,937,500 | $ | 2 | $ | 744,268 | $ | (302,407 | ) | $ | 441,875 | ||||||||||||||||||||||||||||||
Net loss | - | 0 | - | 0 | 0 | (32,414 | ) | (32,414 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued upon exercise of stock options and vesting of restricted stock units | 271,731 | 0 | 0 | 0 | 264 | 0 | 264 | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | - | 0 | - | 0 | 3,770 | 0 | 3,770 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance - June 30, 2022 | 119,244,128 | $ | 12 | 19,937,500 | $ | 2 | $ | 748,302 | $ | (334,821 | ) | $ | 413,495 |
Three Months Ended March 31, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net loss | $ | (35,175 | ) | $ | (11,779 | ) | $ | (67,589 | ) | $ | (47,476 | ) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||
Depreciation | 452 | 213 | 1,060 | 448 | ||||||||||||
Unrealized losses of marketable securities | 11,511 | 0 | 16,144 | 0 | ||||||||||||
Loss on disposal of fixed assets | 9 | 0 | ||||||||||||||
Change in fair value of warrant liabilities | (2,647 | ) | 0 | (4,984 | ) | 3,533 | ||||||||||
Change in fair value of contingent consideration | 54 | 0 | 107 | 0 | ||||||||||||
Stock-based compensation | (714 | ) | 457 | 3,056 | 10,444 | |||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Prepaid expenses and other current assets | 883 | (2,383 | ) | 1,432 | (1,209 | ) | ||||||||||
Other assets - related party | 0 | 738 | ||||||||||||||
Operating lease right-of-use assets | (8,062 | ) | 0 | (8,438 | ) | 0 | ||||||||||
Accounts payable | 1,481 | 1,244 | 77 | 1,699 | ||||||||||||
Accrued expenses and other current liabilities | 707 | 1,512 | 810 | 1,948 | ||||||||||||
Short-term operating lease liabilities | 114 | 0 | 291 | 0 | ||||||||||||
Operating lease liabilities | 8,167 | 0 | 8,851 | 0 | ||||||||||||
Net cash used in operating activities | $ | (23,229 | ) | $ | (10,736 | ) | $ | (49,174 | ) | $ | (29,875 | ) | ||||
Cash flows from investing activities: | ||||||||||||||||
Purchases of property and equipment | (2,500 | ) | (500 | ) | (5,462 | ) | (1,229 | ) | ||||||||
Purchases of marketable securities | (802 | ) | 0 | (101 | ) | 0 | ||||||||||
Sales of marketable securities | 25,000 | 0 | 100,078 | 0 | ||||||||||||
Net cash provided by (used in) investing activities | $ | 21,698 | $ | (500 | ) | $ | 94,515 | $ | (1,229 | ) | ||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from exercise of stock options | 730 | 999 | 994 | 3,711 | ||||||||||||
Net proceeds from equity infusion from the Business Combination | 0 | 514,187 | ||||||||||||||
Payment of notes payable | 0 | (1,749 | ) | |||||||||||||
Payment of contingent consideration - business acquisition | (348 | ) | 0 | |||||||||||||
Payment of deferred consideration - business acquisition | (500 | ) | 0 | |||||||||||||
Stock issuance costs for Series E convertible preferred stock | 0 | (4 | ) | 0 | (4 | ) | ||||||||||
Principal payments under finance lease obligations | 0 | (15 | ) | 0 | (15 | ) | ||||||||||
Net cash provided by financing activities | $ | 730 | $ | 980 | $ | 146 | $ | 516,130 | ||||||||
Net decrease in cash and cash equivalents | (801 | ) | (10,256 | ) | ||||||||||||
Net increase in cash and cash equivalents | 45,487 | 485,026 | ||||||||||||||
Cash and cash equivalents at beginning of period | 35,785 | 36,910 | 35,785 | 36,910 | ||||||||||||
Cash and cash equivalents at end of period | $ | 34,984 | $ | 26,654 | $ | 81,272 | $ | 521,936 | ||||||||
Supplemental disclosure of cash flow information: | ||||||||||||||||
Cash received from exchange of research and development tax credits | $ | 0 | $ | 377 | $ | 0 | $ | 377 | ||||||||
Supplemental disclosure of noncash information: | ||||||||||||||||
Noncash acquisition of property and equipment | $ | 1,580 | $ | 86 | $ | 646 | $ | 108 | ||||||||
Forgiveness of related party promissory notes | $ | 0 | $ | 150 | $ | 0 | $ | 150 | ||||||||
Noncash equity related transaction costs from the Business Combination | $ | 0 | $ | 1,397 | ||||||||||||
Noncash equity related warrants from the Business Combination | $ | 0 | $ | 11,618 | ||||||||||||
Conversion of the convertible preferred stock into Class A and Class B common stock | $ | 0 | $ | 195,810 |
● | 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. |
Purchase Price Allocation | ||||
Prepaid expenses and other current assets | $ | 27 | ||
Property and equipment, net | 906 | |||
Goodwill | 9,483 | |||
Total | $ | 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 | |||||||||||||||||||||||||
March 31, 2022: | ||||||||||||||||||||||||||||||||
June 30, 2022: | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Fixed income mutual funds - Cash and cash equivalents | $ | 29,117 | $ | 29,117 | $ | 0 | $ | 0 | $ | 73,713 | $ | 73,713 | $ | 0 | $ | 0 | ||||||||||||||||
Marketable securities | 399,810 | 399,810 | 0 | 0 | 319,398 | 319,398 | 0 | 0 | ||||||||||||||||||||||||
Total assets at fair value on a recurring basis | $ | 428,927 | $ | 428,927 | $ | 0 | $ | 0 | $ | 393,111 | $ | 393,111 | $ | 0 | $ | 0 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Public Warrants | $ | 4,408 | $ | 4,408 | $ | 0 | $ | 0 | $ | 2,162 | $ | 2,162 | $ | 0 | $ | 0 | ||||||||||||||||
Private Warrants | 184 | 0 | 0 | 184 | 93 | 0 | 0 | 93 | ||||||||||||||||||||||||
Total liabilities at fair value on a recurring basis | $ | 4,592 | $ | 4,408 | $ | 0 | $ | 184 | $ | 2,255 | $ | 2,162 | $ | 0 | $ | 93 |
Fair Value Measurement Level | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
December 31, 2021: | ||||||||||||||||
Assets: | ||||||||||||||||
Fixed income mutual funds - Cash and cash equivalents | $ | 33,965 | $ | 33,965 | $ | 0 | $ | 0 | ||||||||
Marketable securities | 435,519 | 435,519 | 0 | 0 | ||||||||||||
Total assets at fair value on a recurring basis | $ | 469,484 | $ | 469,484 | $ | 0 | $ | 0 | ||||||||
Liabilities: | ||||||||||||||||
Public Warrants | $ | 6,900 | $ | 6,900 | $ | 0 | $ | 0 | ||||||||
Private Warrants | 339 | 0 | 0 | 339 | ||||||||||||
Total liabilities at fair value on a recurring basis | $ | 7,239 | $ | 6,900 | $ | 0 | $ | 339 |
March 31, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | |||||||||||||
Laboratory and production equipment | $ | 9,209 | $ | 7,465 | $ | 11,062 | $ | 7,465 | ||||||||
Computer equipment | 907 | 637 | 1,050 | 637 | ||||||||||||
Software | 179 | 156 | 179 | 156 | ||||||||||||
Furniture and fixtures | 172 | 125 | 172 | 125 | ||||||||||||
Leasehold improvements | 970 | 790 | 1,163 | 790 | ||||||||||||
Construction in process | 4,041 | 3,610 | 3,869 | 3,610 | ||||||||||||
Property and equipment, gross | 15,478 | 12,783 | 17,495 | 12,783 | ||||||||||||
Less: Accumulated depreciation | (4,327 | ) | (3,875 | ) | (4,933 | ) | (3,875 | ) | ||||||||
Property and equipment, net | $ | 11,151 | $ | 8,908 | $ | 12,562 | $ | 8,908 |
March 31, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | |||||||||||||
Employee compensation and benefits | $ | 2,448 | $ | 2,680 | $ | 3,124 | $ | 2,680 | ||||||||
Contracted services | 4,395 | 2,606 | 3,617 | 2,606 | ||||||||||||
Business acquisition costs and contingencies | 1,351 | 1,331 | 745 | 1,331 | ||||||||||||
Legal fees | 568 | 636 | 422 | 636 | ||||||||||||
Other | 17 | 23 | 4 | 23 | ||||||||||||
Total accrued expenses and other current liabilities | $ | 8,779 | $ | 7,276 | $ | 7,912 | $ | 7,276 |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Operating lease cost | $ | 725 | $ | 0 | $ | 812 | $ | 0 | $ | 1,533 | $ | 0 | ||||||||||||
Short-term lease cost | 104 | 122 | 108 | 127 | 212 | 249 | ||||||||||||||||||
Variable lease cost | 286 | 0 | 315 | 0 | 601 | 0 | ||||||||||||||||||
Total lease cost | $ | 1,115 | $ | 122 | $ | 1,235 | $ | 127 | $ | 2,346 | $ | 249 |
March 31, | December 31, | June 30, | December 31, | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Weighted-average remaining lease term (years) | 8.0 | 5.9 | 7.8 | 5.9 | ||||||||||||
Weighted-average discount rate | 7.5 | % | 7.0 | % | 7.6 | % | 7.0 | % |
Three months ended March 31, | Six months ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Operating cash paid to settle operating lease liabilities | $ | 310 | $ | 0 | $ | 621 | $ | 0 | ||||||||
Right-of-use assets obtained in exchange for lease liabilities | $ | 8,490 | $ | 0 | $ | 9,338 | $ | 0 |
Operating Leases | Operating Leases | |||||||
Remainder of 2022 | $ | 2,018 | $ | 1,760 | ||||
2023 | 3,972 | 4,132 | ||||||
2024 | 4,074 | 4,238 | ||||||
2025 | 4,178 | 4,347 | ||||||
2026 | 4,254 | 4,427 | ||||||
Thereafter | 16,547 | 16,968 | ||||||
Total undiscounted lease payments | $ | 35,043 | $ | 35,872 | ||||
Less: Imputed interest | 9,580 | 9,548 | ||||||
Less: Lease incentives (1) | 9,104 | 9,104 | ||||||
Total lease liabilities | $ | 16,359 | $ | 17,220 |
(1) | Includes lease incentives that will be realized in 2022. |
Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | 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 | 7,726,972 | $ | 5.14 | 7.58 | $ | 24,511 | ||||||||||||||||||||
Granted | 4,371,150 | 3.89 | 6,815,430 | 3.72 | ||||||||||||||||||||||||||||
Exercised | (403,020 | ) | 1.81 | (518,478 | ) | 1.92 | ||||||||||||||||||||||||||
Forfeited | (329,897 | ) | 7.36 | (1,142,510 | ) | 5.50 | ||||||||||||||||||||||||||
Outstanding at March 31, 2022 | 11,365,205 | $ | 4.60 | 8.35 | $ | 12,341 | ||||||||||||||||||||||||||
Options exercisable at March 31, 2022 | 4,064,440 | 3.13 | 6.25 | $ | 7,802 | |||||||||||||||||||||||||||
Vested and expected to vest at March 31, 2022 | 10,405,587 | $ | 4.52 | 8.24 | $ | 11,744 | ||||||||||||||||||||||||||
Outstanding at June 30, 2022 | 12,881,414 | $ | 4.42 | 8.39 | $ | 530 | ||||||||||||||||||||||||||
Options exercisable at June 30, 2022 | 4,470,501 | 3.44 | 6.35 | $ | 473 | |||||||||||||||||||||||||||
Vested and expected to vest at June 30, 2022 | 11,775,878 | $ | 4.38 | 8.29 | $ | 523 |
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, 2021 | 4,586,972 | $ | 8.00 | 4,586,972 | $ | 8.00 | ||||||||||
Granted | 0 | 0 | 66,666 | 3.00 | ||||||||||||
Vested | (543,967 | ) | 7.91 | (700,240 | ) | 8.20 | ||||||||||
Forfeited | (1,731,371 | ) | 7.15 | (1,816,102 | ) | 7.23 | ||||||||||
Outstanding non-vested RSUs at March 31, 2022 | 2,311,634 | $ | 8.97 | |||||||||||||
Outstanding non-vested RSUs at June 30, 2022 | 2,137,296 | $ | 8.43 |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Research and development | $ | 1,192 | $ | 340 | $ | 1,154 | $ | 2,483 | $ | 2,346 | $ | 2,823 | ||||||||||||
Selling, general and administrative | (1,906 | ) | 117 | 2,616 | 7,504 | 710 | 7,621 | |||||||||||||||||
Total stock-based compensation | $ | (714 | ) | $ | 457 | $ | 3,770 | $ | 9,987 | $ | 3,056 | $ | 10,444 |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Numerator | ||||||||||||||||||||||||
Net loss | $ | (35,175 | ) | $ | (11,779 | ) | $ | (32,414 | ) | $ | (35,697 | ) | $ | (67,589 | ) | $ | (47,476 | ) | ||||||
Numerator for basic and diluted EPS - loss attributable to common stockholders | $ | (35,175 | ) | $ | (11,779 | ) | $ | (32,414 | ) | $ | (35,697 | ) | $ | (67,589 | ) | $ | (47,476 | ) | ||||||
Denominator | ||||||||||||||||||||||||
Common stock | 138,619,929 | 5,528,551 | 139,000,261 | 36,890,502 | 138,811,146 | 21,296,162 | ||||||||||||||||||
Denominator for basic and diluted EPS - weighted-average common stock | 138,619,929 | 5,528,551 | 139,000,261 | 36,890,502 | 138,811,146 | 21,296,162 | ||||||||||||||||||
Basic and diluted net loss per share | $ | (0.25 | ) | $ | (2.13 | ) | $ | (0.23 | ) | $ | (0.97 | ) | $ | (0.49 | ) | $ | (2.23 | ) |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Outstanding options to purchase common stock | 11,365,205 | 7,814,189 | 12,881,414 | 7,871,098 | 12,881,414 | 7,871,098 | |||||||||||||||||||
Outstanding restricted stock units | 2,311,634 | 4,474,575 | 2,137,296 | 4,845,365 | 2,137,296 | 4,845,365 | |||||||||||||||||||
Outstanding warrants | 3,968,319 | 0 | 3,968,319 | 3,968,319 | 3,968,319 | 3,968,319 | |||||||||||||||||||
Outstanding convertible preferred stock (Series A through E) | 0 | 90,789,268 | |||||||||||||||||||||||
17,645,158 | 103,078,032 | 18,987,029 | 16,684,782 | 18,987,029 | 16,684,782 |
● | in whole and not in part; |
● | at a price of $0.01 per warrant; |
● | upon not less than 30 days’ prior written notice of redemption (the “30-day redemption period”) to each warrant holder; and |
● | 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. |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||
(in thousands, except for % changes) | 2022 | 2021 | % Change | 2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||
Research and development | $ | 18,771 | $ | 7,972 | 135.5 | % | $ | 18,459 | $ | 13,114 | 40.8 | % | $ | 37,230 | $ | 21,086 | 76.6 | % | ||||||||||||||||||
Selling, general and administrative | 8,369 | 3,807 | 119.8 | % | 11,741 | 19,050 | (38.4 | )% | 20,110 | 22,857 | (12.0 | )% | ||||||||||||||||||||||||
Total operating expenses | 27,140 | 11,779 | 130.4 | % | 30,200 | 32,164 | (6.1 | )% | 57,340 | 43,943 | 30.5 | % | ||||||||||||||||||||||||
Loss from operations | (27,140 | ) | (11,779 | ) | 130.4 | % | (30,200 | ) | (32,164 | ) | (6.1 | )% | (57,340 | ) | (43,943 | ) | 30.5 | % | ||||||||||||||||||
Interest expense | - | (5 | ) | (100.0 | )% | - | (5 | ) | (100.0 | )% | ||||||||||||||||||||||||||
Dividend income | 855 | - | nm | 1,052 | 2 | nm | 1,907 | 2 | nm | |||||||||||||||||||||||||||
Change in fair value of warrant liabilities | 2,647 | - | nm | 2,337 | (3,533 | ) | (166.1 | )% | 4,984 | (3,533 | ) | (241.1 | )% | |||||||||||||||||||||||
Other expense, net | (11,537 | ) | - | nm | ||||||||||||||||||||||||||||||||
Other (expense) income, net | (5,603 | ) | 3 | nm | (17,140 | ) | 3 | nm | ||||||||||||||||||||||||||||
Loss before provision for income taxes | (35,175 | ) | (11,779 | ) | 198.6 | % | (32,414 | ) | (35,697 | ) | (9.2 | )% | (67,589 | ) | (47,476 | ) | 42.4 | % | ||||||||||||||||||
Provision for income taxes | - | - | nm | - | - | nm | - | - | nm | |||||||||||||||||||||||||||
Net loss and comprehensive loss | $ | (35,175 | ) | $ | (11,779 | ) | 198.6 | % | $ | (32,414 | ) | $ | (35,697 | ) | (9.2 | )% | $ | (67,589 | ) | $ | (47,476 | ) | 42.4 | % |
Three months ended March 31, | Change | Three months ended June 30, | Change | |||||||||||||||||||||||||||||
(in thousands, except for % changes) | 2022 | 2021 | Amount | % | 2022 | 2021 | Amount | % | ||||||||||||||||||||||||
Research and development | $ | 18,771 | $ | 7,972 | $ | 10,799 | 135.5 | % | $ | 18,459 | $ | 13,114 | $ | 5,345 | 40.8 | % |
Three months ended March 31, | Change | Three months ended June 30, | Change | |||||||||||||||||||||||||||||
(in thousands, except for % changes) | 2022 | 2021 | Amount | % | 2022 | 2021 | Amount | % | ||||||||||||||||||||||||
Selling, general and administrative | $ | 8,369 | $ | 3,807 | $ | 4,562 | 119.8 | % | $ | 11,741 | $ | 19,050 | $ | (7,309 | ) | (38.4 | )% |
Three months ended June 30, | Change | |||||||||||||||
(in thousands, except for % changes) | 2022 | 2021 | Amount | % | ||||||||||||
Interest expense | $ | - | $ | (5 | ) | $ | 5 | (100.0 | )% |
Three months ended June 30, | Change | ||||||||||||
(in thousands, except for % changes) | 2022 | 2021 | Amount | % | |||||||||
Dividend income | $ | 1,052 | $ | 2 | $ | 1,050 | nm |
Three months ended June 30, | Change | |||||||||||||||
(in thousands, except for % changes) | 2022 | 2021 | Amount | % | ||||||||||||
Change in fair value of warrant liabilities | $ | 2,337 | $ | (3,533 | ) | $ | 5,870 | (166.1 | )% |
Three months ended June 30, | Change | ||||||||||||
(in thousands, except for % changes) | 2022 | 2021 | Amount | % | |||||||||
Other (expense) income, net | $ | (5,603 | ) | $ | 3 | $ | (5,606 | ) | nm |
Six months ended June 30, | Change | |||||||||||||||
(in thousands, except for % changes) | 2022 | 2021 | Amount | % | ||||||||||||
Research and development | $ | 37,230 | $ | 21,086 | $ | 16,144 | 76.6 | % |
Six months ended June 30, | Change | |||||||||||||||
(in thousands, except for % changes) | 2022 | 2021 | Amount | % | ||||||||||||
Selling, general and administrative | $ | 20,110 | $ | 22,857 | $ | (2,747 | ) | (12.0 | )% |
Six months ended June 30, | Change | |||||||||||||||
(in thousands, except for % changes) | 2022 | 2021 | Amount | % | ||||||||||||
Interest expense | $ | - | $ | (5 | ) | $ | 5 | (100.0 | )% |
Three months ended March 31, | Change | Six months ended June 30, | Change | ||||||||||||||||||||||||
(in thousands, except for % changes) | 2022 | 2021 | Amount | % | 2022 | 2021 | Amount | % | |||||||||||||||||||
Dividend income | $ | 855 | $ | - | $ | 855 | nm | $ | 1,907 | $ | 2 | $ | 1,905 | nm |
Three months ended March 31, | Change | Six months ended June 30, | Change | |||||||||||||||||||||||||||
(in thousands, except for % changes) | 2022 | 2021 | Amount | % | 2022 | 2021 | Amount | % | ||||||||||||||||||||||
Change in fair value of warrant liabilities | $ | 2,647 | $ | - | $ | 2,647 | nm | $ | 4,984 | $ | (3,533 | ) | $ | 8,517 | (241.1 | )% |
Three months ended March 31, | Change | Six months ended June 30, | Change | ||||||||||||||||||||||||
(in thousands, except for % changes) | 2022 | 2021 | Amount | % | 2022 | 2021 | Amount | % | |||||||||||||||||||
Other expense, net | $ | (11,537 | ) | $ | - | $ | (11,537 | ) | nm | ||||||||||||||||||
Other (expense) income, net | $ | (17,140 | ) | $ | 3 | $ | (17,143 | ) | nm |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Net loss | $ | (35,175 | ) | $ | (11,779 | ) | $ | (32,414 | ) | $ | (35,697 | ) | $ | (67,589 | ) | $ | (47,476 | ) | ||||||
Adjustments to reconcile to EBITDA: | ||||||||||||||||||||||||
Interest expense | - | 5 | - | 5 | ||||||||||||||||||||
Dividend income | (855 | ) | - | (1,052 | ) | (2 | ) | (1,907 | ) | (2 | ) | |||||||||||||
Depreciation | 608 | 235 | 1,060 | 448 | ||||||||||||||||||||
EBITDA | $ | (32,858 | ) | $ | (35,459 | ) | $ | (68,436 | ) | $ | (47,025 | ) | ||||||||||||
Adjustments to reconcile to Adjusted EBITDA: | ||||||||||||||||||||||||
Change in fair value of warrant liabilities | (2,647 | ) | - | (2,337 | ) | 3,533 | (4,984 | ) | 3,533 | |||||||||||||||
Other expense, net | 11,537 | - | ||||||||||||||||||||||
Other expense (income), net | 5,603 | (3 | ) | 17,140 | (3 | ) | ||||||||||||||||||
Stock-based compensation | (714 | ) | 457 | 3,770 | 9,987 | 3,056 | 10,444 | |||||||||||||||||
Depreciation | 452 | 213 | ||||||||||||||||||||||
Transaction related costs - business combination | - | 6,920 | - | 6,920 | ||||||||||||||||||||
Adjusted EBITDA | $ | (27,402 | ) | $ | (11,109 | ) | $ | (25,822 | ) | $ | (15,022 | ) | $ | (53,224 | ) | $ | (26,131 | ) |
Three months ended March 31, | Six months ended June 30, | |||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Net cash (used in) provided by: | ||||||||||||||||
Net cash used in operating activities | $ | (23,229 | ) | $ | (10,736 | ) | $ | (49,174 | ) | $ | (29,875 | ) | ||||
Net cash provided by (used in) investing activities | 21,698 | (500 | ) | 94,515 | (1,229 | ) | ||||||||||
Net cash provided by financing activities | 730 | 980 | 146 | 516,130 | ||||||||||||
Net decrease in cash and cash equivalents | $ | (801 | ) | $ | (10,256 | ) | ||||||||||
Net increase in cash and cash equivalents | $ | 45,487 | $ | 485,026 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
ITEM 1. | LEGAL PROCEEDINGS. |
ITEM 1A. | RISK FACTORS. |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. |
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES. |
ITEM 4. | MINE SAFETY DISCLOSURES. |
ITEM 5. | OTHER INFORMATION. |
Exhibit Number | | Exhibit Description | | Filed Herewith | | Incorporated by Reference Herein from Form or Schedule | | Filing Date | | SEC File/ Reg. Number |
10.1+ | Separation Agreement, dated as of | Form 8-K (Exhibit 10.1) | | 001-39486 | ||||||
10.2+ | Offer Letter of Employment, dated April 26, 2022, by and between Quantum-Si Incorporated and Patrick Schneider | Form 8-K (Exhibit 10.1) | 5/9/2022 | 001-39486 | ||||||
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) | | X | | | | |||
101.SCH | | Inline XBRL Taxonomy Extension Schema Document | | X | | | | |||
101.CAL | | Inline XBRL Taxonomy Extension Calculation Linkbase Document | | X | | | | |||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | X | ||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | X | ||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | X | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | X |
+ | Management contract or compensatory plan or arrangement. |
QUANTUM-SI INCORPORATED | ||||
Date: | By: | /s/ Jonathan M. Rothberg, Ph.D. | ||
Jonathan M. Rothberg, Ph.D. | ||||
Interim Chief Executive Officer | ||||
Date: | By: | /s/ Claudia Drayton | |
Claudia Drayton | |||
Chief Financial Officer |