Absci (ABSI) 10-Q 11 Aug 22 2022 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2022	Jul. 31, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	001-40646
Entity Registrant Name	ABSCI CORP
Entity Incorporation, State	DE
Entity Tax Identification Number	85-3383487
Entity Address, Street	18105 SE Mill Plain Blvd
Entity Address, City	Vancouver
Entity Address, State	WA
Entity Address, Postal Zip Code	98683
City Area Code	360
Local Phone Number	949-1041
Title of each class	Common Stock. $0.0001 par value
Trading Symbol(s)	ABSI
Name of each exchange on which registered	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		92,843,545
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001672688

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 206,021	$ 252,569
Restricted cash	15,017	10,513
Receivables under development arrangements	310	1,425
Prepaid expenses and other current assets	6,540	8,572
Total current assets	227,888	273,079
Operating lease right-of-use assets	5,708	6,538
Property and equipment, net	54,890	52,114
Intangibles, net	53,308	54,992
Goodwill	21,335	21,335
Restricted cash, long-term	1,845	16,844
Other long-term assets	1,341	1,293
TOTAL ASSETS	366,315	426,195
Current liabilities:
Accounts payable	5,470	8,385
Accrued expenses	17,054	17,434
Long-term debt, current	2,135	2,400
Operating lease obligations	1,584	1,502
Financing lease obligations	2,651	2,785
Deferred revenue	2,798	1,353
Total current liabilities	31,692	33,859
Long-term debt - net of current portion	7,125	1,124
Operating lease obligations - net of current portion	8,175	8,969
Finance lease obligations - net of current portion	1,818	3,231
Deferred tax, net	1,085	743
Other long-term liabilities	227	12,162
TOTAL LIABILITIES	50,122	60,088
Commitments (See Note 8)
STOCKHOLDERS' EQUITY
Preferred stock, $0.0001 par value; 10,000,000 shares authorized as of June 30, 2022 and December 31, 2021; 0 shares issued and outstanding as of June 30, 2022 and December 31, 2021	0	0
Common stock, $0.0001 par value; 500,000,000 shares authorized as of June 30, 2022 and December 31, 2021; 92,780,988 and 92,648,036 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively	9	9
Additional paid-in capital	565,444	557,136
Accumulated deficit	(249,199)	(191,025)
Accumulated other comprehensive loss	(61)	(13)
TOTAL STOCKHOLDERS' EQUITY	316,193	366,107
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 366,315	$ 426,195

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value (usd per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (usd per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares, issued (in shares)	92,780,988	92,648,036
Common stock, shares, outstanding (in shares)	92,780,988	92,648,036

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenues
Technology development revenue	$ 636	$ 592	$ 1,090	$ 1,532
Collaboration revenue	366	136	731	259
Total revenues	1,002	728	1,821	1,791
Operating expenses
Research and development	16,241	11,040	32,068	18,090
Selling, general and administrative	10,507	5,179	21,396	9,864
Depreciation and amortization	3,141	1,201	6,047	1,677
Total operating expenses	29,889	17,420	59,511	29,631
Operating loss	(28,887)	(16,692)	(57,690)	(27,840)
Other expense
Interest expense	(211)	(2,009)	(406)	(2,464)
Other income (expense), net	148	(28,114)	273	(27,950)
Total other expense, net	(63)	(30,123)	(133)	(30,414)
Loss before income taxes	(28,950)	(46,815)	(57,823)	(58,254)
Income tax (expense) benefit	270	5,617	(351)	6,094
Net loss	(28,680)	(41,198)	(58,174)	(52,160)
Cumulative undeclared preferred stock dividends	0	(1,047)	0	(2,042)
Net loss applicable to common stockholders basic	(28,680)	(42,245)	(58,174)	(54,202)
Net loss applicable to common stockholders diluted	$ (28,680)	$ (42,245)	$ (58,174)	$ (54,202)
Net loss per share attributable to common stockholders: basic (usd per share)	$ (0.32)	$ (2.39)	$ (0.64)	$ (3.13)
Net loss per share attributable to common stockholders: diluted (usd per share)	$ (0.32)	$ (2.39)	$ (0.64)	$ (3.13)
Weighted-average common shares outstanding: basic (in shares)	90,669,499	17,641,147	90,471,950	17,312,437
Weighted-average common shares outstanding: diluted (in shares)	90,669,499	17,641,147	90,471,950	17,312,437
Comprehensive loss:
Net loss	$ (28,680)	$ (41,198)	$ (58,174)	$ (52,160)
Foreign currency translation adjustments	(40)	(11)	(50)	(11)
Unrealized gain on investments	2	0	2	0
Comprehensive loss	$ (28,718)	$ (41,209)	$ (58,222)	$ (52,171)

STATEMENTS OF CHANGES IN REDEEM

STATEMENTS OF CHANGES IN REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) (UNAUDITED) - USD ($) $ in Thousands	Total	Preferred stock Redeemable Convertible Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity
Beginning balance (in shares)			17,887,631
Beginning balance at Dec. 31, 2020		$ 156,433
Beginning balance (in shares) at Dec. 31, 2020		13,752,043
Increase (Decrease) in Temporary Equity
Issuance of Series E preferred stock, net of issuance costs		$ 4,944
Issuance of Series E preferred stock, net of issuance costs (in shares)		254,886
Ending balance at Mar. 31, 2021		$ 161,377
Ending balance (in shares) at Mar. 31, 2021		14,006,929
Beginning balance at Dec. 31, 2020	$ (89,428)		$ 2	$ 635	$ (90,065)	$ 0
Increase (Decrease) in Stockholders' Equity
Issuance of restricted stock (in shares)			703,425
Stock-based compensation	1,519			1,519
Issuance of shares in acquisition	368			368
Issuance of shares in acquisition (in shares)			1,010,296
Net loss	(10,962)				(10,962)
Ending balance at Mar. 31, 2021	(98,503)		$ 2	2,522	(101,027)	0
Ending balance (in shares) at Mar. 31, 2021			19,601,352
Beginning balance at Dec. 31, 2020		$ 156,433
Beginning balance (in shares) at Dec. 31, 2020		13,752,043
Ending balance at Jun. 30, 2021		$ 161,377
Ending balance (in shares) at Jun. 30, 2021		14,006,929
Beginning balance at Dec. 31, 2020	(89,428)		$ 2	635	(90,065)	0
Increase (Decrease) in Stockholders' Equity
Foreign currency translation adjustments	(11)
Unrealized gain on investments	0
Net loss	(52,160)
Ending balance at Jun. 30, 2021	(124,262)		$ 2	17,972	(142,225)	(11)
Ending balance (in shares) at Jun. 30, 2021			21,876,173
Increase (Decrease) in Stockholders' Equity
Beginning balance (in shares)			19,601,352
Beginning balance at Mar. 31, 2021		$ 161,377
Beginning balance (in shares) at Mar. 31, 2021		14,006,929
Ending balance at Jun. 30, 2021		$ 161,377
Ending balance (in shares) at Jun. 30, 2021		14,006,929
Beginning balance at Mar. 31, 2021	(98,503)		$ 2	2,522	(101,027)	0
Increase (Decrease) in Stockholders' Equity
Issuance of shares upon option exercise	69			69
Issuance of shares upon option exercise (in shares)			62,613
Stock-based compensation	1,490			1,490
Issuance of shares in acquisition	13,891			13,891
Issuance of shares in acquisition (in shares)			2,212,208
Foreign currency translation adjustments	(11)					(11)
Unrealized gain on investments	0
Net loss	(41,198)				(41,198)
Ending balance at Jun. 30, 2021	(124,262)		$ 2	17,972	(142,225)	(11)
Ending balance (in shares) at Jun. 30, 2021			21,876,173
Increase (Decrease) in Stockholders' Equity
Beginning balance (in shares)			21,876,173
Beginning balance (in shares)			92,648,036
Beginning balance at Dec. 31, 2021		$ 0
Beginning balance (in shares) at Dec. 31, 2021		0
Ending balance at Mar. 31, 2022		$ 0
Ending balance (in shares) at Mar. 31, 2022		0
Beginning balance at Dec. 31, 2021	366,107		$ 9	557,136	(191,025)	(13)
Increase (Decrease) in Stockholders' Equity
Issuance of shares upon option exercise	213			213
Issuance of shares upon option exercise (in shares)			187,151
Stock-based compensation	3,680			3,680
Foreign currency translation adjustments	(10)					(10)
Net loss	(29,494)				(29,494)
Ending balance at Mar. 31, 2022	340,496		$ 9	561,029	(220,519)	(23)
Ending balance (in shares) at Mar. 31, 2022			92,835,187
Beginning balance at Dec. 31, 2021		$ 0
Beginning balance (in shares) at Dec. 31, 2021		0
Ending balance at Jun. 30, 2022		$ 0
Ending balance (in shares) at Jun. 30, 2022		0
Beginning balance at Dec. 31, 2021	366,107		$ 9	557,136	(191,025)	(13)
Increase (Decrease) in Stockholders' Equity
Foreign currency translation adjustments	(50)
Unrealized gain on investments	2
Net loss	(58,174)
Ending balance at Jun. 30, 2022	316,193		$ 9	565,444	(249,199)	(61)
Ending balance (in shares) at Jun. 30, 2022			92,780,988
Increase (Decrease) in Stockholders' Equity
Beginning balance (in shares)			92,835,187
Beginning balance at Mar. 31, 2022		$ 0
Beginning balance (in shares) at Mar. 31, 2022		0
Ending balance at Jun. 30, 2022		$ 0
Ending balance (in shares) at Jun. 30, 2022		0
Beginning balance at Mar. 31, 2022	340,496		$ 9	561,029	(220,519)	(23)
Increase (Decrease) in Stockholders' Equity
Issuance of shares upon option exercise	215			215
Issuance of shares upon option exercise (in shares)			195,418
Repurchase of common stock (in shares)			(249,618)
Stock-based compensation	4,200			4,200
Foreign currency translation adjustments	(40)					(40)
Unrealized gain on investments	2					2
Other (in shares)			1
Net loss	(28,680)				(28,680)
Ending balance at Jun. 30, 2022	$ 316,193		$ 9	$ 565,444	$ (249,199)	$ (61)
Ending balance (in shares) at Jun. 30, 2022			92,780,988
Increase (Decrease) in Stockholders' Equity
Beginning balance (in shares)			92,780,988

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash Flows From Operating Activities
Net loss	$ (58,174)	$ (52,160)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	6,047	1,677
Deferred income taxes	342	(6,094)
Stock-based compensation	7,949	3,593
Change in fair value of convertible promissory notes	0	25,107
Change in fair value of contingent consideration	750	0
Gain on extinguishment of loan payable	0	(636)
Other	(105)	(11)
Preferred stock warrant liability expense	0	3,440
Changes in operating assets and liabilities:
Receivables under development arrangements	1,115	1,109
Prepaid expenses and other current assets	1,701	(921)
Operating lease right-of-use assets and liabilities	(277)	2,653
Other long-term assets	(47)	(1,853)
Accounts payable	659	2,744
Accrued expenses and other liabilities	(5,132)	(404)
Deferred revenue	1,444	(16)
Net cash used in operating activities	(43,728)	(21,772)
Cash Flows From Investing Activities
Purchases of property and equipment	(10,745)	(24,111)
Acquisitions, net of cash acquired	(8,000)	(28,130)
Proceeds from property insurance settlements	665	0
Net cash used in investing activities	(18,080)	(52,241)
Cash Flows From Financing Activities
Proceeds from issuance of redeemable convertible preferred units and stock, net of issuance costs	0	4,944
Proceeds from issuance of long-term debt	9,407	0
Principal payments on long-term debt	(3,698)	(139)
Principal payments on finance lease obligations	(1,372)	(772)
Proceeds from issuance of common stock, net of issuance costs	428	69
Proceeds from issuance of convertible promissory notes	0	125,000
Net cash (used in) provided by financing activities	4,765	129,102
Net (decrease) increase in cash, cash equivalents, and restricted cash	(57,043)	55,089
Cash, cash equivalents and restricted cash - Beginning of year	279,926	71,708
Cash, cash equivalents, and restricted cash - End of period	222,883	126,797
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest	360	315
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Property and equipment purchased under finance lease	0	1,729
Right-of-use assets obtained in exchange for operating lease obligation	0	3,330
Cash paid for amounts included in the measurement of operating lease liabilities	1,141	508
Property and equipment purchases included in accounts payable	1,990	4,187
Deferred offering costs included in accounts payable	$ 0	$ 825

Organization and nature of oper

Organization and nature of operations	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and nature of operations	Organization and nature of operations Absci Corporation (the “Company”) has developed an integrated drug creation platform (the “Integrated Drug Creation Platform”) by merging deep learning artificial intelligence and synthetic biology. The Integrated Drug Creation Platform enables the creation of biologics by unifying the drug discovery and cell line development processes into one process. The Company was organized in the State of Oregon in August 2011 as a limited liability company and converted to a limited liability company (“LLC”) in Delaware in April 2016. In October 2020, the Company converted from a Delaware LLC to a Delaware corporation (the “LLC Conversion”). The Company’s headquarters are located in Vancouver, Washington. Authorized shares of common stock In June 2021, the Company’s board of directors (the “Board”) and stockholders increased the number of authorized shares of common stock to 78,320,000. Initial Public Offering In July 2021, we completed our initial public offering (the “IPO”) and issued 14.4 million shares of our common stock, including 1.9 million shares pursuant to the full exercise of the underwriters’ option to purchase additional shares, at a price of $16.00 per share and received net proceeds of $210.1 million from the IPO. Immediately prior to the completion of the IPO, all shares of redeemable convertible preferred stock then outstanding were converted into 46.3 million shares of common stock and all convertible notes issued in March 2021 were converted into 9.7 million shares of common stock. Amendments to Certificate of Incorporation or Bylaws In connection with the consummation of the IPO, the Company filed an amended and restated certificate of incorporation (the “Restated Certificate”) with the Secretary of State of the State of Delaware. The Board and stockholders previously approved the Restated Certificate to be filed in connection with, and to be effective upon, the consummation of the IPO. The Restated Certificate amended and restated the Company’s existing amended and restated certificate of incorporation, as amended, in its entirety to, among other things: (i) authorize 500,000,000 shares of common stock; (ii) eliminate all references to the previously-existing series of preferred stock; (iii) authorize 10,000,000 shares of undesignated preferred stock that may be issued from time to time by the Board in one or more series; (iv) establish a classified board divided into three classes, with each class serving staggered three-year terms and (v) require the approval of holders of at least 75% of the voting power of the Company’s outstanding shares of voting stock to amend or repeal certain provisions of the Restated Certificate. Stock split On July 16, 2021, the Board and stockholders approved an amendment to the Company’s amended and restated certificate of incorporation to effect a forward stock split of the Company’s issued and outstanding common stock at a 3.3031-to-1 ratio, which was effected on July 19, 2021. The par value and convertible preferred stock were not adjusted as a result of the forward stock split. All issued and outstanding common stock, options to purchase common stock and units, and per share and unit amounts contained in the financial statements have been retroactively adjusted to reflect the forward stock split for all periods presented. The financial statements have also been retroactively adjusted to reflect a proportional adjustment to the conversion ratio for each series of preferred stock that was effected in connection with the forward stock split. Unaudited Interim Financial Information We prepared our interim condensed consolidated financial statements that accompany these notes in conformity with U.S. GAAP, consistent in all material respects with those applied in our Annual Report on Form 10-K for the year ended December 31, 2021. We have made estimates and judgments affecting the amounts reported in our condensed consolidated financial statements and the accompanying notes. The actual results that we experience may differ materially from our estimates. The interim financial information is unaudited and reflects all normal adjustments that are, in our opinion, necessary to provide a fair statement of results for the interim periods presented. This

Summary of significant accounti

Summary of significant accounting policies	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Summary of significant accounting policies	Summary of significant accounting policies Basis of presentation The condensed consolidated financial statements are prepared in accordance with U.S. GAAP as defined by the Financial Accounting Standards Board (“FASB”). The condensed consolidated financial statements include the Company’s wholly-owned subsidiaries and entities under its control. The Company has eliminated all intercompany transactions and accounts. There have been no material changes in the accounting policies from those disclosed in the audited consolidated financial statements and the related notes included in the Annual Report on Form 10-K, which was filed with the SEC on March 22, 2022.

Revenue recognition

Revenue recognition	6 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenue recognition	Revenue recognition Contract balances Contract assets are generated when contractual billing schedules differ from revenue recognition timing and the Company records a contract receivable when it has an unconditional right to consideration. As of June 30, 2022 and December 31, 2021, contract assets were $0.1 million and $0.6 million, respectively. Contract liabilities are recorded in deferred revenue when cash payments are received or due in advance of the satisfaction of performance obligations. As of June 30, 2022 and December 31, 2021, contract liabilities were $2.8 million and $1.4 million, respectively. During the three and six months ended June 30, 2022, the Company recognized $0.4 million and $0.8 million, respectively, as revenue that had been included in deferred revenue at the beginning of the period. During the three and six months ended June 30, 2021, the Company recognized $0.1 million and $1.1 million, respectively, as revenue that had been included in deferred revenue at the beginning of the period. KBI BioPharma, Inc. Collaboration agreement In December 2019, the Company executed a four-year Joint Marketing Agreement (“JMA”) with KBI BioPharma, Inc. (“KBI”) to co-promote technologies through joint marketing efforts. The JMA provides for a non-refundable upfront payment of $0.8 million and milestone payments of $2.8 million in the aggregate, of which $2.3 million had been received as of June 30, 2022, upon the achievement of specific milestones. Upfront payments that relate to ongoing collaboration efforts required throughout the contract term such as joint marketing are recognized ratably throughout the contract term. The Company fully constrains revenue associated with the milestone payments until the specified milestones are probable of achievement. Additionally, KBI is obligated to make royalty payments to the Company during the fourth year of the JMA representing a percentage of its sales generated through the arrangement. Any costs incurred to KBI through the duration of the JMA are recognized as a reduction to collaboration revenue in the period in which they are incurred. In September 2021, the JMA was amended to shorten the term to approximately three years, while all remaining payments, including potential royalty payments, were replaced with a one-time fee due from KBI in the amount of $0.3 million. The Company determined the remaining services were distinct from those provided prior to the modification and therefore recognizes the total remaining transaction price prospectively over the remaining contractual term. As of June 30, 2022 and December 31, 2021, deferred revenues related to the JMA were $0.5 million and $1.2 million, respectively.

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract]
Acquisitions	Acquisitions Acquisition of Denovium In January 2021, the Company completed its acquisition of the common stock of Denovium, Inc. (“Denovium”), an artificial intelligence deep learning company focused on protein discovery and design. The Company is integrating Denovium’s technology into its Integrated Drug Creation Platform. The acquisition has been accounted for as a business combination. Pursuant to the terms of the agreement, the Company acquired all outstanding equity of Denovium for estimated total consideration of $3.0 million, which consists of (in thousands): Cash consideration $ 2,670 Equity consideration 368 Total purchase consideration $ 3,038 Cash consideration includes a $2.5 million upfront payment and a payment for working capital adjustments. In addition to the $2.5 million paid upfront, $2.5 million was placed into escrow subject to the continued service and/or employment of Denovium’s co-founders over a one year period. This amount is not included in the total consideration and is accounted for as compensation expense over the one year service period, and was included in current restricted cash and accrued expenses on the condensed consolidated balance sheet as of December 31, 2021. The $2.5 million deferred payment was disbursed from escrow in January 2022. The Company issued 1,010,296 shares of its common stock to the Denovium co-founders, of which 80% or 808,238 shares is subject to a Stock Restriction Agreement and vests monthly over a four year term subject to a service condition. The fair value of these shares of $1.5 million will be recognized as compensation cost over the four year service period. The remaining 20%, or 202,058 shares, vested immediately and is included in the total consideration. The following table summarizes the allocation of the purchase consideration to the fair value of the assets acquired and liabilities assumed (in thousands): Cash and cash equivalents $ 158 Accounts receivable 59 Other current assets 1 Intangible assets 2,507 Goodwill 1,055 TOTAL ASSETS 3,780 Accounts payable and accrued expenses 109 Deferred tax liability 633 TOTAL LIABILITIES 742 Fair value of net assets acquired and liabilities assumed $ 3,038 Goodwill arising from the acquisition of $1.1 million was attributable to the assembled workforce and expected synergies between the Integrated Drug Creation Platform and the Denovium Engine. The goodwill is not deductible for tax purposes. As of December 31, 2021, the Company had fully completed the analysis to assign fair values to all assets acquired and liabilities assumed. The following table reflects the fair values of the identified intangible assets of Denovium and their respective weighted-average estimated amortization periods. Estimated Fair Value (in thousands) Estimated Amortization Period (years) Denovium Engine $ 2,507 5 $ 2,507 Acquisition of Totient On June 4, 2021, the Company entered into a merger agreement with Totient, Inc. (“Totient”), under which, at the effective time, a wholly owned entity, or Merger Sub, merged with Totient, with Merger Sub surviving as a wholly owned subsidiary of the Company. Pursuant to the merger agreement, at closing, Totient shareholders became eligible to receive an aggregate payment of $55.0 million in cash, of which $40.0 million in cash was paid at closing, subject to customary purchase price adjustments and escrow restrictions, and $15.0 million in cash shall be paid upon the achievement of specified milestones, and 2,212,208 shares of the Company’s common stock. The $40.0 million cash consideration included $8.0 million of deferred cash payment, due in one year. This amount was included in current restricted cash and accrued expenses on the condensed consolidated balance sheet as of December 31, 2021. The $8.0 million of deferred cash payment was paid out in the three months ended June 30, 2022. All common stock issued is unrestricted, except for those shares granted to certain members of Totient’s management, of which 25% of the shares issued were vested upon the closing of the transaction and the remaining 75% will vest over 2.5 years, in six-month installments subject to their respective continuing service relationships with the Company. The following table summarizes the purchase price (in thousands): Estimated cash payment to Totient stockholders $ 35,368 (i) Estimated stock payment to Totient stockholders 13,891 (ii) Estimated cash payment contingent on achieving specified milestone 12,000 (iii) Total $ 61,259 (i) Pursuant to the merger agreement, the initial purchase price includes $40.0 million of cash adjusted for the agreed upon working capital value which includes the payment of Totient’s transaction and other expenses as well as payments to Totient stock option holders for the cancellation and extinguishment of Totient stock options. (ii) Pursuant to the merger agreement, 2,212,208 shares of common stock issued in payment to Totient stockholders with 1,282,747 vesting immediately and therefore included in the purchase price consideration. The remaining 929,461 shares will vest ratably, every six months over 5 equal installments of a 2.5 years service period and will be expensed over the service period. These shares are subject to stock restriction agreements that require certain former key Totient executives to maintain a continued service relationship with Absci throughout the service period. (iii) Represents the estimated fair value of the contingent consideration that is payable upon the achievement of the milestone of (i) Absci’s entering into one or more definitive commercialization agreements, or technology partnering or licensing agreements, or collaboration agreements, with third parties using, or related to, Totient’s technology, a target discovered or identified by using Totient’s technology, or a peptide, protein complex or amino acid sequence assembled using Totient’s technology, including any Totient product or enabled product, pursuant to which (a) Absci is entitled to receive at least $2.0 million in aggregate upfront cash or equity payments (provided, that the minimum upfront payment under any individual agreement shall be $1.0 million and (b) an option for a license or a license or similar right is granted to the third party; or (ii) first commercial sale of a Totient product or enabled product. The fair value estimate is based on a probability-weighted approach and will be updated as we obtain more information. The $12.0 million of contingent consideration originally measured was adjusted to reflect the increased probability of achievement. As of June 30, 2022 the fair value is $12.8 million and is included in accrued expenses on the condensed consolidated balance sheet as of June 30, 2022. Changes in the contingent consideration liability fair value are reflected within research and development expenses on the condensed consolidated statement of operations and comprehensive loss. The following table summarizes the allocation of the estimated consideration to the identifiable assets and liabilities acquired by us as of June 4, 2021 (in thousands). Current assets: Cash and cash equivalents $ 1,751 Prepaid expenses and other current assets 189 Total current assets 1,940 Operating lease right-of-use assets 266 Property and equipment, net 118 Goodwill 20,280 (i) Intangible assets 54,600 (ii) Other long-term assets 23 TOTAL ASSETS 77,227 Current liabilities: Accounts payable 78 Accrued expenses 6,588 Operating lease obligations 122 Total current liabilities 6,788 Operating lease obligations - net of current portion 144 Deferred tax, net 9,012 Other long-term liabilities 24 TOTAL LIABILITIES 15,968 Fair value of net assets acquired and liabilities assumed $ 61,259 (i) Goodwill represents the excess of the estimated purchase price over the estimated fair value of Totient’s identifiable assets acquired and liabilities assumed. Goodwill also reflects the requirement to record deferred tax balances for the difference between the assigned values and the tax bases of assets acquired and liabilities assumed in the business combination. Goodwill is not deductible for tax purposes. (ii) The estimated fair value of and useful lives of the intangible assets acquired is as follows: Estimated fair value (in thousands) (i) Estimated useful lives (in years) (ii) Monoclonal antibody library $ 46,300 20 Developed software platform and the related methods patents 8,300 15 Total $ 54,600 (i) The estimated fair values were categorized within Level 3 of the fair value hierarchy and were determined using an income-based approach, which was based on the present value of the future estimated after-tax cash flows attributable to each intangible asset. The significant assumptions inherent in the development of the values, from the perspective of a market participant, include the amount and timing of projected future cash flows (including revenue, regulatory success and profitability), and the discount rate selected to measure the risks inherent in the future cash flows, which was between 18%-23%. These fair values are based on the most recent estimate of the fair value available and will be updated as we obtain more information. (ii) The estimate of the useful life was based on an analysis of the expected use of the asset by us, any legal, regulatory or contractual provisions that may limit the useful life, the effects of obsolescence, competition and other relevant economic factors, and consideration of the expected cash flows used to measure the fair value of the intangible asset. As of March 31, 2022, the Company had fully completed the analysis to assign fair values to all assets acquired and liabilities assumed and recorded no adjustments to the preliminary purchase price allocation in the six months ended June 30, 2022. During the year ended December 31, 2021, the Company recorded adjustments to goodwill of $1.6 million primarily related to deferred taxes. The Company’s results of operations for the three and six months ended June 30, 2022 include the operating results of Totient within the condensed consolidated statement of operations and comprehensive loss. The operating results of Totient are included within the condensed consolidated statement of operations and comprehensive loss from June 4, 2021 through June 30, 2021 for the three and six months ended June 30, 2021. Acquisition costs of $0.9 million were included in the condensed consolidated statement of operations and comprehensive loss as selling, general and administrative for the three and six months ended June 30, 2021. The financial information in the table below summarizes the combined results of operations of the Company and Totient on a pro forma basis, as though the companies had been combined as of January 1, 2020. These pro forma results were based on estimates and assumptions, which we believe are reasonable. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of our fiscal year 2020. The pro forma financial information includes adjustments to share-based compensation expense, amortization for acquired intangible assets, interest expense, and transaction costs, and related tax effects. The pro forma financial information for the three and six months ended June 30, 2021 and combines our results, which include the results of Totient subsequent to June 4, 2021, and the historical results for Totient for the periods prior to acquisition. The following table summarizes the pro forma financial information (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2021 2021 Net loss applicable to common stockholders and unitholders $ (47,035) $ (61,116)

Cash equivalents and investment

Cash equivalents and investments	6 Months Ended
	Jun. 30, 2022
Cash and Cash Equivalents [Abstract]
Cash equivalents and investments	Cash equivalents and investments Cash equivalents, marketable securities and deposits are classified as available for sale and are, therefore, recorded at fair value on the condensed consolidated balance sheet, with any unrealized gains and losses reported in accumulated other comprehensive income, which is reflected as a separate component of stockholders’ equity in the Company’s condensed consolidated balance sheet, until realized. The amortized cost and fair value of our cash equivalents and investments are as follows (in thousands): June 30, 2022 Amortized cost Gross unrealized gains Fair market value Assets Money market funds $ 169 $ — $ 169 U.S. treasury bills 49,831 2 49,833 Total $ 50,000 $ 2 $ 50,002 Classified as: Cash equivalents $ 50,002 Short-term investments — Long-term investments — Total $ 50,002 All investments held as of June 30, 2022 were cash equivalents and had contractual maturities less than 90 days. There were no realized gains and losses on these securities for the period presented. Unrealized gains on these investments were primarily due to changes in interest rates. We did not have any investments in a continuous unrealized loss position for more than twelve months as of June 30, 2022. There were no investments held as of December 31, 2021.

Property and equipment, net

Property and equipment, net	6 Months Ended
	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Property and equipment, net	Property and equipment, net Property and equipment as of June 30, 2022 and December 31, 2021 consists of the following (in thousands): June 30, December 31, 2022 2021 Construction in progress $ 134 $ 933 Lab Equipment 34,161 27,776 Software 315 311 Furniture, Fixtures and Other 5,043 4,804 Leasehold Improvements 25,958 24,671 Total Cost 65,611 58,495 Less accumulated depreciation and amortization (10,721) (6,381) Property and equipment, net $ 54,890 $ 52,114 Depreciation expense was $2.3 million and $4.4 million for the three and six months ended June 30, 2022, respectively. Depreciation expense was $0.9 million and $1.2 million for the three and six months ended June 30, 2021, respectively.

Long-term debt and other borrow

Long-term debt and other borrowings	6 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
Long-term debt and other borrowings	Long-term debt and other borrowings Loan and Security Agreement (“LSA”) In June 2018, the Company signed a Loan and Security Agreement (“LSA”) with Bridge Bank (“Bank”), a di vision of Western Alliance Bank. The purpose of the LSA was to provide long-term financing to the Company through term loans available for borrowing in three tranches up to a maximum of $3.0 million through December 2019 upon the attainment of certain milestones as delineated in the LSA. The first tranche of $0.3 million was borrowed in 2018. The Company was obligated to make interest-only payments until the amortization date of June 28, 2019 and after that date to make principal and interest payments. Interest on outstanding borrowings under the LSA is charged at a rate of 6% per annum. This loan was scheduled to originally mature in May 2022, at which time all outstanding principal and accrued and unpaid interest was due and payable. This loan is secured by substantially all tangible assets of the Company; intellectual property is excluded from the secured collateral but is subject to a negative pledge in favor of the Bank. In March 2019, the Company entered into a first amendment to the LSA that increased total borrowings to $3.0 million and added a financial liquidity covenant. The amendment was accounted for as a debt modification and no gain or loss was recognized in the Company’s financial statements. In May 2020, the Company entered into a second amendment to the LSA that increased total borrowings to $5.0 million. The amortization date was extended to May 1, 2021 except, if a certain revenue and new contract bo okings milestone is achieved, the amortization date is extended to November 1, 2021. The maturity date of the loan was extended to May 11, 2024. The amendment was accounted for as a debt modification and no gain or loss was recognized in the Company’s financial statements. In August 2020, the Company entered into a third amendment to the LSA that waived an event of default due to failure to meet a financial covenant. The amendment also expanded the definition of permitted indebtedness to include Payroll Protection Plan (“PPP”) loans, and modified financial and restrictive covenants. In February 2021, the Company entered into a fourth amendment to the LSA. This amendment gave effect to the Company’s conversion to a corporation and its purchase of Denovium, including permitting certain cash and equity consideration linked to continued employment and service requirements, and adding Denovium as co-borrower to the LSA. In June 2021, the Company entered into a fifth amendment to the LSA. This amendment modified the term loan’s maturity date to June 16, 2023. In February 2022, the Company entered into a sixth amendment to the LSA. This amendment modified various definitions and terms within the agreement, with no adjustments to the financial terms. The Company may prepay all, but not less than all, of the term loans at any time upon 10 days written notice, with a prepayment premium beginning at 1.0% initially and declining to 0% after May 11, 2022. The Company is also required to pay a final payment equal to 3% of the principal amount funded, which is payable upon the earliest to occur of (i) the maturity date, (ii) acceleration and (iii) the prepayment of the loan. As part of the second amendment, the Company paid a one time amendment fee and a pro-rated final payment in connection with the amendment. The final payment represents an additional principal payment and is accounted for as a debt discount that will be accreted through the maturity date of the loan based on the effective interest method. In connection with entering into the LSA in June 2018, the Company entered into an agreement whereby the Company is required to pay a fee of 3.5% of the aggregate amount of term loans funded by Bank under the LSA within three business days of a sale or other disposition of substantially all of the Company’s assets, a merger or consolidation, a change in control or an initial public offering. Concurrent with the second amendment, the Company and the Bank entered into an amended agreement which extended the term of the fee to May 11, 2030. This fee became payable upon completion of the Company’s IPO on July 26, 2021 and was paid during the year ended December 31, 2021. In June 2022, the Company paid off the remaining $2.4 million outstanding balance of the LSA. Con vertible Note In March 2021, the Company entered into a Note Purchase Agreement to issue and sell $125.0 million convertible promissory notes (the “2021 Notes”) to certain investors. The 2021 Notes accrued interest at 6% per annum. Due to certain embedded features within the 2021 Notes, the Company elected to account for these notes, including all of their embedded features, under the fair value option. The Company has elected to recognize interest expense based on the 6% per annum coupon rate of the Notes, which was included in other long-term liabilities on the condensed consolidated balance sheet through the date of the IPO. Based on the terms of the agreement, the 2021 Notes converted at an 18% discount from the offering price to the public in the IPO. Prior to the conversion, the Company recorded a final fair value adjustment of the 2021 Notes using the Company's common stock price at the IPO. Immediately prior to the completion of the IPO, all outstanding principal under the 2021 Notes and the related accrued interest expense were converted into an aggregate of 9,732,593 shares of our common stock based on an initial public offering price of $16.00 per share. Equipment Financing In the three months ended June 30, 2022, the Company received $9.4 million of proceeds from equipment financing arrangements with multiple financial institutions. Terms of the agreements require monthly payments over 42-48 month maturities with imputed interest rates ranging 8%-10%. All outstanding principal and accrued and unpaid interest is due and payable at maturity. These loans are secured by certain tangible assets of the Company and include certain financial liquidity covenants. The Company was in compliance with all applicable financial covenants as of June 30, 2022. Future undiscounted payments for the Company’s financing liabilities as of June 30, 2022 are as follows (in thousands): Years ending December 31: 2022 (six months remaining) $ 1,339 2023 3,019 2024 3,019 2025 2,617 2026 852 Thereafter — Total future payments 10,846 Less: Imputed interest (1,586) Total long-term debt $ 9,260

Commitment and Contingencies

Commitment and Contingencies	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	Commitments and contingenciesAs of June 30, 2022, future lease payments are secured by irrevocable standby letters of credit totaling $1.8 million. The irrevocable standby letters of credit are expected to be pledged for the full lease terms which extend through 2024 and 2028 for each of the Company’s facility leases.The Company is not currently party to any material claims or legal proceedings. At each reporting date, the Company evaluates whether or not a potential loss or a potential range of loss is both probable and reasonably estimable.

Stock-based compensation

Stock-based compensation	6 Months Ended
	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Stock-based compensation	Stock-based compensation Prior to the LLC Conversion, the Company granted incentive units and phantom units under its 2015 Equity-Based Incentive Plan (“2015 Plan”) to employees and non-employee service providers. In October 2020, in conjunction with the LLC Conversion, the Company adopted the 2020 Stock Option and Grant Plan (“2020 Plan”) under which it granted stock options, restricted shares, and SARs as replacement awards for outstanding awards under the 2015 Plan and as new awards to incentivize employee service. Upon completion of the IPO, the Company adopted the 2021 Stock Option and Incentive Plan (“2021 Plan”). Total stock-based compensation expense related to all of the Company’s stock-based awards was recorded in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2022 2021 2022 2021 Research and development 1,697 851 3,120 1,927 Selling, general and administrative 2,550 591 4,906 1,666 Total stock-based compensation expense $ 4,247 $ 1,442 $ 8,026 $ 3,593 Restricted Stock Upon the LLC Conversion, the outstanding 3,329,707 incentive units were exchanged for 2,671,907 restricted shares of common stock granted under the 2020 Plan based on a ratio determined by their threshold amount and the fair value of the restricted stock. The exchange was accounted for as a probable-to-probable modification (Type I modification), and the fair value of the restricted shares did not exceed the fair value of the incentive units on the date of exchange. Accordingly, the restricted shares are measured at the grant date fair value of the incentive units. Shares of restricted stock that do not vest are subject to our right of repurchase or forfeiture. In connection with its acquisitions of Denovium and Totient, the Company issued restricted shares of common stock that vest over time subject to continued service. Activity for the restricted shares is shown below: Number of shares Unvested as of December 31, 2021 2,585,670 Repurchased (249,618) Vested (514,738) Unvested as of June 30, 2022 1,821,314 As of June 30, 2022, there was $8.4 million of unrecognized compensation expense related to the restricted shares expected to be recognized over a remaining weighted-average period of 1.8 years. During the six months ended June 30, 2022, the Company granted 68,175 shares of restricted stock units to certain employees and consultants under the 2021 Plan. As of June 30, 2022, 68,175 shares of these restricted stock units were outstanding and unvested. As of June 30, 2022, total unrecognized stock-based compensation related to these restricted stock units was $0.5 million, which the Company expects to recognize over a remaining weighted average period of 3.1 years. Phantom Units Phantom units generally vested at 25% after one-year with the remainder vesting quarterly over the following three-year period. Upon the occurrence of a liquidity event, 100% of phantom units would vest. A liquidity event for purposes of the phantom units meant either of the following events: (i) a person or persons acting as a group (other than a person or group that currently owns more than 50% of the voting power of the Company) acquires ownership of common units that, together with the common units held by such person or group, constitutes more than 50% of the voting power of all common units of the Company or (ii) a person or persons acting as a group acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value of more than 60% of the total gross fair market value of all of the assets of the Company immediately before such acquisition or acquisitions. Upon a liquidity event, the phantom unit holders were entitled to a payment equal to the fair value of common units less a strike price. The payment was to be made in the same form of consideration as received by other unit holders as a result of the liquidity event. Other than this payment upon a liquidity event, phantom units provided no economic value and they provided no voting rights. Due to the presence of an exercise condition that was contingent upon a liquidity event, the Company determined that it was not probable that the phantom units would become exercisable and no compensation expense has been recognized. Activity for the phantom units is shown below: Number of Units Weighted Average Strike Price Unvested as of December 31, 2020 1,202,435 $ 0.47 Granted — — Vested — — Exchange of Phantom Units for Cash Payment Rights, SARs, and/or Stock Options (1,202,435) $ 0.47 Unvested as of June 30, 2021 — $ — Following the LLC Conversion, the holders of phantom units were offered to exchange their awards for a combination of cash payment rights, SARs and/or stock options granted under the 2020 Plan. The exchange was accounted for as short-term inducement, with no accounting recognition prior to offer expiration in January 2021 as the exchange offer participants were able to modify their election through the expiration date. In January 2021, all participants accepted the offer. The exercisability of the SARs is contingent upon a liquidity event that is not probable of occurrence; accordingly, no compensation expense has been recognized for these awards. The stock options vest based on a service condition, generally over a 4-year term beginning with the vesting commencement date of the exchanged phantom units. The Company recognizes expense associated with the cash payment rights within stock-based compensation and began to make payments in February 2022 for vested rights. As cash payment rights continue to vest, payments are made monthly. The aggregate intrinsic value of the 394,736 SARs outstanding as of June 30, 2022 is $1.3 million based on the estimated fair value of common stock of $3.32 per share. Stock Options Stock options generally vest 25% after one-year from the date of the grant with the remainder vesting monthly over the following three-year period. Certain options have alternative vesting schedules including ratably over 2-4 years and immediate vesting. The Company recognizes forfeitures as they occur and uses the straight-line expense recognition method. Activity for stock options is shown below: Number of Options Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in Outstanding at December 31, 2021 7,757,401 $ 3.72 9.2 $ 40,939 Granted 4,281,834 7.23 Exercised (382,569) 1.12 Canceled/ Forfeited (806,439) 4.60 Expired (9,747) 1.12 Outstanding at June 30, 2022 10,840,480 5.14 8.8 8,313 Exercisable at June 30, 2022 2,629,096 $ 2.22 8.1 $ 4,185 Vested and expected to vest as of June 30, 2022 10,840,480 8.8 $ 8,313 The aggregate intrinsic value was calculated based on the estimated fair value of common stock of $3.32 per share. The weighted-average grant date fair value of stock options granted during the three and six months ended June 30, 2022 was $3.16 and $4.21, respectively. The weighted-average grant date fair value of stock options granted during the three and six months ended June 30, 2021 was $7.08 and $3.87, respectively. The grant date fair value of options vested during the three and six months ended June 30, 2022 was $5.0 million and $5.8 million, respectively. The intrinsic value of options exercised, which represents the value of the Company’s common stock at the time of exercise in excess of the exercise price, was $1.8 million during the six months ended June 30, 2022. As of June 30, 2022, total unrecognized stock-based compensation related to stock options was $34.2 million, which the Company expects to recognize over a remaining weighted average period of 3.1 years. Under the 2020 Plan and 2021 Plan, the Company has also granted a limited quantity of cash-settled stock appreciation rights to certain international-based employees and consultants. As of June 30, 2022, 147,181 of these stock appreciation rights were outstanding with a weighted average exercise price of $5.72. As of June 30, 2022, the Company had recognized a liability of $0.2 million classified within other long-term liabilities on the condensed consolidated balance sheets and total unrecognized stock-based compensation related to these cash-settled stock appreciation rights was $0.7 million, which the Company expects to recognize over a remaining weighted average period of 3.1 years. The fair value is remeasured at the end of each reporting period based on the Company’s stock price, with remeasurements reflected as an adjustment to compensation expense in the condensed consolidated statements of operations and comprehensive loss. Determination of Fair Value The estimated grant-date fair value of all the Company’s stock options was calculated using the Black-Scholes option pricing model, based on the following assumptions: For the Three Months Ended June 30, For the Six Months Ended June 30, 2022 2021 2022 2021 Expected term (in years) 5.5-6.8 6.0-6.1 5.5-7.0 3.5-6.1 Volatility 63%-64% 46% 63%-67% 45%-47% Risk-free interest rate 2.5%-3.0% 1.2%-1.3% 0.8%-3.0% 0.3%-1.3% Dividend Yield —% —% —% —% The fair value of each stock option was determined by the Company using the methods and assumptions discussed below. Each of these inputs is subjective and generally requires significant judgment and estimation by management. Expected Term—The expected term represents the period that stock-based awards are expected to be outstanding. The Company’s stock options do not have a contractual term. However, there is a constructive maturity of each stock option based on the expected exit or liquidity scenarios for the Company. The Company’s historical option exercise data is limited and did not provide a reasonable basis upon which to estimate an expected term. The expected term for options was derived by using the simplified method which uses the midpoint between the average vesting term and the contractual expiration period of the stock-based award. Expected Volatility—As we do not have sufficient trading history for our common stock, the expected volatility was derived from the historical stock volatilities of comparable peer public companies within the Company’s industry. These companies are considered to be comparable to the Company’s business over a period equivalent to the expected term of the stock-based awards. Risk-Free Interest Rate—The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the date of grant for zero coupon U.S. Treasury notes with maturities approximately equal to the stock options’ expected term. Expected Dividend Rate—The expected dividend is zero as the Company has not paid nor does it anticipate paying any dividends on its common stock underlying its stock options in the foreseeable future. The Company estimated the fair value of its common stock underlying the stock-based awards when performing fair value calculations using the Black-Scholes option pricing model. In June 2021, the Company increased the number of shares of common stock reserved for future issuance under the 2020 Plan to 11,980,029. In July 2021, upon the completion of IPO, the Company adopted the 2021 Plan. The number of shares of common stock initially reserved for future issuance under the 2021 Plan was 8,133,750. On January 1, 2022, the number of shares of common stock reserved for future issuance under the 2021 Plan was increased by 4,632,401 shares pursuant to an automatic annual increase. As of June 30, 2022, 9,601,512 shares were available for issuance under the 2021 Plan. Employee Stock Purchase Plan In July 2021, the Board adopted the 2021 Employee Stock Purchase Plan (“2021 ESPP”), which was subsequently approved by the Company’s stockholders and became effective in connection with the IPO. A total of 903,750 shares of common stock were reserved for issuance under the 2021 ESPP. The first offering period has not commenced as of June 30, 2022 and there is no stock-based compensation related to the 2021 ESPP for the period ended June 30, 2022.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Financial Accounting Standards Board (“FASB”) has defined fair value to establish a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets. Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. When quoted market prices are available in active markets, the fair value of assets and liabilities is estimated within Level 1 of the valuation hierarchy. If quoted prices are not available, then fair values are estimated by using pricing models, quoted prices of assets and liabilities with similar characteristics, or discounted cash flows, within Level 2 of the valuation hierarchy. In cases where Level 1 or Level 2 inputs are not available, the fair values are estimated by using inputs within Level 3 of the hierarchy. The following tables summarize the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 Level 1 Level 2 Level 3 Total Assets: Debt Securities: Money market funds $ 169 $ — $ — $ 169 U.S. treasury bills 49,833 — — 49,833 Equity Securities: Equity securities without RDFV — — 1,200 1,200 Total assets $ 50,002 $ — $ 1,200 $ 51,202 Liabilities: Contingent consideration $ — $ — $ 12,750 $ 12,750 Total liabilities $ — $ — $ 12,750 $ 12,750 December 31, 2021 Level 1 Level 2 Level 3 Total Assets Equity securities without RDFV $ — $ — $ 1,200 $ 1,200 Total assets $ — $ — $ 1,200 $ 1,200 Liabilities: Contingent consideration $ — $ — $ 12,000 $ 12,000 Total liabilities $ — $ — $ 12,000 $ 12,000 The following table provides reconciliation for all liabilities measured at fair value using significant unobservable inputs (Level 3) for the quarter ended June 30, 2022 (in thousands): Contingent consideration Total liabilities Balance at December 31, 2021 $ 12,000 $ 12,000 Change in fair value during 2022 750 750 Balance at June 30, 2022 $ 12,750 $ 12,750 We review trading activity and pricing for our available-for-sale securities as of the measurement date. The fair value of equity securities without readily determinable fair market values (“RDFV”) is determined based on cost, less any impairment, plus or minus changes in fair value resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. These securities are classified as Level 3 in the fair value hierarchy outlined above. The contingent consideration liability is related to the Totient acquisition and is included in accrued expenses on the condensed consolidated balance sheet as of June 30, 2022. The change in fair value of the contingent consideration liability is included within research and development expense on the condensed consolidated statement of operations for the six months ended June 30, 2022. Refer to Note 4: Acquisitions for further information. There are significant judgments, assumptions and estimates inherent in the determination of the fair value of each of the instruments described above. In the future, depending on the valuation approaches used and the expected timing and weighting of each, the inputs described above, or other inputs, may have a greater or lesser impact on the Company’s estimates of fair value.

Related party transactions

Related party transactions	6 Months Ended
	Jun. 30, 2022
Related Party Transactions [Abstract]
Related party transactions	Related Party Transactions The Company had no related party transactions for the six months ended June 30, 2022. During the year ended December 31, 2021, Phoenix Venture Partners II, L.P. exercised a warrant to purchase 307,211 shares of the Company’s common stock at an exercise price of $0.3027 per share, resulting in total cash proceeds to the Company of $0.1 million. Zachariah Jonasson, a member of the Board, is a principal of Phoenix Venture Partners II, L.P.

Net loss per share attributable

Net loss per share attributable to common stockholders	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Net loss per share attributable to common stockholders	Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. The following table sets forth the computation of the Company’s basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share amounts): For the Three Months Ended June 30, For the Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net loss $ (28,680) $ (41,198) $ (58,174) $ (52,160) Cumulative undeclared preferred stock dividends — (1,047) — (2,042) Net loss available to common stockholder $ (28,680) $ (42,245) $ (58,174) $ (54,202) Denominator: Weighted-average common shares outstanding 90,669,499 17,641,147 90,471,950 17,312,437 Net loss per share, basic and diluted $ (0.32) $ (2.39) $ (0.64) $ (3.13) The common stock issuable upon the conversion or exercise of the following dilutive securities has been excluded from the diluted net loss per share calculation because their effect would have been anti-dilutive. Diluted net loss per share, therefore, does not differ from basic net loss per share for the periods presented. Potentially dilutive securities not included in the calculation of diluted net loss per share because to do so would be anti-dilutive are as follows (in common stock equivalent shares): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Redeemable convertible preferred stock outstanding — 46,266,256 — 46,033,714 Redeemable convertible preferred stock warrants — 307,211 — 307,211 Stock options 10,785,909 6,038,919 10,139,442 4,677,249 Restricted stock units 68,175 — 48,589 — Unvested restricted stock 2,123,409 2,554,598 2,296,359 2,138,146

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income taxes The Company's effective income tax rate from continuing operations was 0.9% and (0.6)% for the three and six months ended June 30, 2022, respectively. The difference between the effective rate and the statutory rate is primarily attributed to the change in the valuation allowance against net deferred tax assets. The Company estimates an annual effective income tax rate based on projected results for the year and applies this rate to income before taxes to calculate income tax expense. When applicable, the income tax provision also includes adjustments for discrete tax items. Any refinements made due to subsequent information that affects the estimated annual effective income tax rate are reflected as adjustments in the current period. For the three and six months ended June 30, 2022, the Company’s tax expense (benefit) was $(0.3) million and $0.4 million, respectively. For the three and six months ended June 30, 2021, the Company’s tax expense (benefit) was $(5.6) million and $(6.1) million, respectively. The Company recognizes the effect of income tax positions only if those positions are “more likely than not” of being sustained. As of June 30, 2022, the Company has $1.0 million of unrecognized tax benefits. Interest and penalties accrued on unrecognized tax benefits are recorded as tax expense within the condensed consolidated financial statements. The Company does not expect a significant increase or decrease to the total amounts of unrecognized tax benefits within the next twelve months. The Company and its subsidiaries file U.S. federal income tax returns and various state, local and foreign income tax returns. At June 30, 2022, the Company’s statutes of limitations are open for all federal and state years filed after the year of incorporation ending December 31, 2020. Net operating loss (“NOL”) and credit carryforwards from all years, including carryforwards from acquisitions generated prior to 2020, are subject to examination and adjustments for the three years following the year in which the carryforwards are utilized. The Company is not currently under Internal Revenue Service or state examination. Pursuant to Internal Revenue Code Sections 382 and 383, the utilization of NOLs and other tax attributes may be substantially limited due to cumulative changes in ownership greater than 50% that may have occurred or could occur during applicable testing periods.

Summary of significant accoun_2

Summary of significant accounting policies (Policies)	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The condensed consolidated financial statements are prepared in accordance with U.S. GAAP as defined by the Financial Accounting Standards Board (“FASB”). The condensed consolidated financial statements include the Company’s wholly-owned subsidiaries and entities under its control. The Company has eliminated all intercompany transactions and accounts. There have been no material changes in the accounting policies from those disclosed in the audited consolidated financial statements and the related notes included in the Annual Report on Form 10-K, which was filed with the SEC on March 22, 2022.

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract]
Schedule of Consideration Transferred	Pursuant to the terms of the agreement, the Company acquired all outstanding equity of Denovium for estimated total consideration of $3.0 million, which consists of (in thousands): Cash consideration $ 2,670 Equity consideration 368 Total purchase consideration $ 3,038 The following table summarizes the purchase price (in thousands): Estimated cash payment to Totient stockholders $ 35,368 (i) Estimated stock payment to Totient stockholders 13,891 (ii) Estimated cash payment contingent on achieving specified milestone 12,000 (iii) Total $ 61,259 (i) Pursuant to the merger agreement, the initial purchase price includes $40.0 million of cash adjusted for the agreed upon working capital value which includes the payment of Totient’s transaction and other expenses as well as payments to Totient stock option holders for the cancellation and extinguishment of Totient stock options. (ii) Pursuant to the merger agreement, 2,212,208 shares of common stock issued in payment to Totient stockholders with 1,282,747 vesting immediately and therefore included in the purchase price consideration. The remaining 929,461 shares will vest ratably, every six months over 5 equal installments of a 2.5 years service period and will be expensed over the service period. These shares are subject to stock restriction agreements that require certain former key Totient executives to maintain a continued service relationship with Absci throughout the service period. (iii) Represents the estimated fair value of the contingent consideration that is payable upon the achievement of the milestone of (i) Absci’s entering into one or more definitive commercialization agreements, or technology partnering or licensing agreements, or collaboration agreements, with third parties using, or related to, Totient’s technology, a target discovered or identified by using Totient’s technology, or a peptide, protein complex or amino acid sequence assembled using Totient’s technology, including any Totient product or enabled product, pursuant to which (a) Absci is entitled to receive at least $2.0 million in aggregate upfront cash or equity payments (provided, that the minimum upfront payment under any individual agreement shall be $1.0 million and (b) an option for a license or a license or similar right is granted to the third party; or (ii) first commercial sale of a Totient product or enabled product. The fair value estimate is based on a probability-weighted approach and will be updated as we obtain more information. The $12.0 million of contingent consideration originally measured was adjusted to reflect the increased probability of achievement. As of June 30, 2022 the fair value is $12.8 million and is included in accrued expenses on the condensed consolidated balance sheet as of June 30, 2022. Changes in the contingent consideration liability fair value are reflected within research and development expenses on the condensed consolidated statement of operations and comprehensive loss.
Schedule of Assets and Liabilities Acquired	The following table summarizes the allocation of the purchase consideration to the fair value of the assets acquired and liabilities assumed (in thousands): Cash and cash equivalents $ 158 Accounts receivable 59 Other current assets 1 Intangible assets 2,507 Goodwill 1,055 TOTAL ASSETS 3,780 Accounts payable and accrued expenses 109 Deferred tax liability 633 TOTAL LIABILITIES 742 Fair value of net assets acquired and liabilities assumed $ 3,038 The following table summarizes the allocation of the estimated consideration to the identifiable assets and liabilities acquired by us as of June 4, 2021 (in thousands). Current assets: Cash and cash equivalents $ 1,751 Prepaid expenses and other current assets 189 Total current assets 1,940 Operating lease right-of-use assets 266 Property and equipment, net 118 Goodwill 20,280 (i) Intangible assets 54,600 (ii) Other long-term assets 23 TOTAL ASSETS 77,227 Current liabilities: Accounts payable 78 Accrued expenses 6,588 Operating lease obligations 122 Total current liabilities 6,788 Operating lease obligations - net of current portion 144 Deferred tax, net 9,012 Other long-term liabilities 24 TOTAL LIABILITIES 15,968 Fair value of net assets acquired and liabilities assumed $ 61,259 (i) Goodwill represents the excess of the estimated purchase price over the estimated fair value of Totient’s identifiable assets acquired and liabilities assumed. Goodwill also reflects the requirement to record deferred tax balances for the difference between the assigned values and the tax bases of assets acquired and liabilities assumed in the business combination. Goodwill is not deductible for tax purposes. (ii) The estimated fair value of and useful lives of the intangible assets acquired is as follows:
Schedule Estimated Fair Values of the Identified Intangible Assets	The following table reflects the fair values of the identified intangible assets of Denovium and their respective weighted-average estimated amortization periods. Estimated Fair Value (in thousands) Estimated Amortization Period (years) Denovium Engine $ 2,507 5 $ 2,507 Estimated fair value (in thousands) (i) Estimated useful lives (in years) (ii) Monoclonal antibody library $ 46,300 20 Developed software platform and the related methods patents 8,300 15 Total $ 54,600 (i) The estimated fair values were categorized within Level 3 of the fair value hierarchy and were determined using an income-based approach, which was based on the present value of the future estimated after-tax cash flows attributable to each intangible asset. The significant assumptions inherent in the development of the values, from the perspective of a market participant, include the amount and timing of projected future cash flows (including revenue, regulatory success and profitability), and the discount rate selected to measure the risks inherent in the future cash flows, which was between 18%-23%. These fair values are based on the most recent estimate of the fair value available and will be updated as we obtain more information. (ii) The estimate of the useful life was based on an analysis of the expected use of the asset by us, any legal, regulatory or contractual provisions that may limit the useful life, the effects of obsolescence, competition and other relevant economic factors, and consideration of the expected cash flows used to measure the fair value of the intangible asset.
Summary of Pro-forma Financial Information	The following table summarizes the pro forma financial information (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2021 2021 Net loss applicable to common stockholders and unitholders $ (47,035) $ (61,116)

Cash equivalents and investme_2

Cash equivalents and investments (Tables)	6 Months Ended
	Jun. 30, 2022
Cash and Cash Equivalents [Abstract]
Schedule of Amortized and Fair Value of our Cash Equivalents and Investments	The amortized cost and fair value of our cash equivalents and investments are as follows (in thousands): June 30, 2022 Amortized cost Gross unrealized gains Fair market value Assets Money market funds $ 169 $ — $ 169 U.S. treasury bills 49,831 2 49,833 Total $ 50,000 $ 2 $ 50,002 Classified as: Cash equivalents $ 50,002 Short-term investments — Long-term investments — Total $ 50,002

Property and equipment, net (Ta

Property and equipment, net (Tables)	6 Months Ended
	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Schedule of Components of Property and Equipment	Property and equipment as of June 30, 2022 and December 31, 2021 consists of the following (in thousands): June 30, December 31, 2022 2021 Construction in progress $ 134 $ 933 Lab Equipment 34,161 27,776 Software 315 311 Furniture, Fixtures and Other 5,043 4,804 Leasehold Improvements 25,958 24,671 Total Cost 65,611 58,495 Less accumulated depreciation and amortization (10,721) (6,381) Property and equipment, net $ 54,890 $ 52,114

Long-term debt and other borr_2

Long-term debt and other borrowings (Tables)	6 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
Schedule of Maturities of Long-term Debt	Future undiscounted payments for the Company’s financing liabilities as of June 30, 2022 are as follows (in thousands): Years ending December 31: 2022 (six months remaining) $ 1,339 2023 3,019 2024 3,019 2025 2,617 2026 852 Thereafter — Total future payments 10,846 Less: Imputed interest (1,586) Total long-term debt $ 9,260

Stock-based compensation (Table

Stock-based compensation (Tables)	6 Months Ended
	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of Allocation of Share based Compensation	Total stock-based compensation expense related to all of the Company’s stock-based awards was recorded in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2022 2021 2022 2021 Research and development 1,697 851 3,120 1,927 Selling, general and administrative 2,550 591 4,906 1,666 Total stock-based compensation expense $ 4,247 $ 1,442 $ 8,026 $ 3,593
Schedule of Nonvested Share Activity	Activity for the restricted shares is shown below: Number of shares Unvested as of December 31, 2021 2,585,670 Repurchased (249,618) Vested (514,738) Unvested as of June 30, 2022 1,821,314 Activity for the phantom units is shown below: Number of Units Weighted Average Strike Price Unvested as of December 31, 2020 1,202,435 $ 0.47 Granted — — Vested — — Exchange of Phantom Units for Cash Payment Rights, SARs, and/or Stock Options (1,202,435) $ 0.47 Unvested as of June 30, 2021 — $ —
Schedule of Stock Option Activity	Activity for stock options is shown below: Number of Options Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in Outstanding at December 31, 2021 7,757,401 $ 3.72 9.2 $ 40,939 Granted 4,281,834 7.23 Exercised (382,569) 1.12 Canceled/ Forfeited (806,439) 4.60 Expired (9,747) 1.12 Outstanding at June 30, 2022 10,840,480 5.14 8.8 8,313 Exercisable at June 30, 2022 2,629,096 $ 2.22 8.1 $ 4,185 Vested and expected to vest as of June 30, 2022 10,840,480 8.8 $ 8,313
Schedule of Determination of Fair Value	The estimated grant-date fair value of all the Company’s stock options was calculated using the Black-Scholes option pricing model, based on the following assumptions: For the Three Months Ended June 30, For the Six Months Ended June 30, 2022 2021 2022 2021 Expected term (in years) 5.5-6.8 6.0-6.1 5.5-7.0 3.5-6.1 Volatility 63%-64% 46% 63%-67% 45%-47% Risk-free interest rate 2.5%-3.0% 1.2%-1.3% 0.8%-3.0% 0.3%-1.3% Dividend Yield —% —% —% —%

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The following tables summarize the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 Level 1 Level 2 Level 3 Total Assets: Debt Securities: Money market funds $ 169 $ — $ — $ 169 U.S. treasury bills 49,833 — — 49,833 Equity Securities: Equity securities without RDFV — — 1,200 1,200 Total assets $ 50,002 $ — $ 1,200 $ 51,202 Liabilities: Contingent consideration $ — $ — $ 12,750 $ 12,750 Total liabilities $ — $ — $ 12,750 $ 12,750 December 31, 2021 Level 1 Level 2 Level 3 Total Assets Equity securities without RDFV $ — $ — $ 1,200 $ 1,200 Total assets $ — $ — $ 1,200 $ 1,200 Liabilities: Contingent consideration $ — $ — $ 12,000 $ 12,000 Total liabilities $ — $ — $ 12,000 $ 12,000
Fair Value Using Significant Unobservable Inputs (Level 3)	The following table provides reconciliation for all liabilities measured at fair value using significant unobservable inputs (Level 3) for the quarter ended June 30, 2022 (in thousands): Contingent consideration Total liabilities Balance at December 31, 2021 $ 12,000 $ 12,000 Change in fair value during 2022 750 750 Balance at June 30, 2022 $ 12,750 $ 12,750

Net loss per share attributab_2

Net loss per share attributable to common stockholders (Tables)	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Schedule of Company’s Basic and Diluted Net Loss Per Share Attributable to Common Unitholders and Stockholders	The following table sets forth the computation of the Company’s basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share amounts): For the Three Months Ended June 30, For the Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net loss $ (28,680) $ (41,198) $ (58,174) $ (52,160) Cumulative undeclared preferred stock dividends — (1,047) — (2,042) Net loss available to common stockholder $ (28,680) $ (42,245) $ (58,174) $ (54,202) Denominator: Weighted-average common shares outstanding 90,669,499 17,641,147 90,471,950 17,312,437 Net loss per share, basic and diluted $ (0.32) $ (2.39) $ (0.64) $ (3.13)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	Potentially dilutive securities not included in the calculation of diluted net loss per share because to do so would be anti-dilutive are as follows (in common stock equivalent shares): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Redeemable convertible preferred stock outstanding — 46,266,256 — 46,033,714 Redeemable convertible preferred stock warrants — 307,211 — 307,211 Stock options 10,785,909 6,038,919 10,139,442 4,677,249 Restricted stock units 68,175 — 48,589 — Unvested restricted stock 2,123,409 2,554,598 2,296,359 2,138,146

Organization and nature of op_2

Organization and nature of operations (Details) $ / shares in Units, $ in Millions		1 Months Ended
	Jul. 16, 2021	Jul. 31, 2021 USD ($) $ / shares shares	Mar. 31, 2021 shares $ / shares	Jun. 30, 2022 shares	Dec. 31, 2021 shares	Jul. 26, 2021 shares	Jun. 30, 2021 shares
Class of Stock
Common stock, shares authorized (in shares)				500,000,000	500,000,000	500,000,000	78,320,000
Shares issued upon conversion of convertible preferred shares (in shares)		46,300,000
Preferred stock, shares authorized (in shares)				10,000,000	10,000,000	10,000,000
Stock split ratio	3.3031
2021 Notes | Convertible promissory notes
Class of Stock
Shares issued upon conversion of convertible debt (shares)			9,732,593
IPO
Class of Stock
Shares issued and sold (in shares)		14,400,000
Issuance price (usd per share) | $ / shares		$ 16	$ 16
Proceeds from issuance initial public offering | $		$ 210.1
Over-Allotment Option
Class of Stock
Shares issued and sold (in shares)		1,900,000

Revenue recognition (Details)

Revenue recognition (Details) - USD ($) $ in Millions	1 Months Ended		3 Months Ended		6 Months Ended		30 Months Ended
	Sep. 30, 2021	Dec. 31, 2019	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Dec. 31, 2021
Collaborative Arrangement and Arrangement Other than Collaborative
Contract assets			$ 0.1		$ 0.1		$ 0.1	$ 0.6
Contract liabilities			2.8		2.8		2.8	1.4
Revenue recognized from customer contract liability			0.4	$ 0.1	0.8	$ 1.1
KBI BioPharma, Inc. | Collaborative Arrangements
Collaborative Arrangement and Arrangement Other than Collaborative
Contract liabilities			0.5		0.5		0.5	$ 1.2
Contract term (years)	3 years	4 years
Upfront payment received							0.8
Aggregate milestone payments			2.8		2.8		2.8
Cumulative proceed from collaborative agreements			$ 2.3		$ 2.3		$ 2.3
Collaborative arrangement, collaboration agreement fee	$ 0.3

Acquisitions - Consideration (D

Acquisitions - Consideration (Details) $ in Thousands		1 Months Ended
	Jun. 04, 2021 USD ($) installment shares	Jan. 31, 2021 USD ($) shares	Jun. 30, 2022 USD ($)
Denovium
Business Combination, Consideration Transferred
Cash consideration		$ 2,670
Equity consideration		368
Total purchase consideration		$ 3,038
Denovium | Common Stock
Business Combination, Consideration Transferred
Shares issued as consideration (shares) | shares		1,010,296
Totient
Business Combination, Consideration Transferred
Cash consideration	$ 40,000
Equity consideration	13,891
Estimated cash payment to Totient stockholders	35,368
Estimated cash payment contingent on achieving specified milestone	12,000
Total purchase consideration	61,259
Minimum contingent proceeds due from potential trigger event	2,000
Contingent consideration			$ 12,800
Totient | Individual Contract
Business Combination, Consideration Transferred
Minimum contingent proceeds due from potential trigger event	$ 1,000
Totient | Common Stock
Business Combination, Consideration Transferred
Shares issued as consideration (shares) | shares	2,212,208
Totient | Vest On Closing | Common Stock
Business Combination, Consideration Transferred
Milestone consideration (shares) | shares	1,282,747
Totient | Share Vesting Based On Service
Business Combination, Consideration Transferred
Vesting period	2 years 6 months
Totient | Share Vesting Based On Service | Common Stock
Business Combination, Consideration Transferred
Milestone consideration (shares) | shares	929,461
Vesting installments | installment	5

Acquisitions - Denovium Narrati

Acquisitions - Denovium Narrative (Details) - USD ($) $ in Thousands	1 Months Ended
	Jan. 31, 2021	Jun. 30, 2022	Jan. 31, 2022	Dec. 31, 2021
Business Acquisition
Restricted cash		$ 15,017		$ 10,513
Goodwill		$ 21,335		$ 21,335
Denovium
Business Acquisition
Total purchase consideration	$ 3,038
Payment of upfront consideration and working capital adjustments	2,500
Restricted cash	2,500
Compensation expense			$ 2,500
Goodwill	$ 1,055
Denovium | Common Stock
Business Acquisition
Shares issued as consideration (shares)	1,010,296
Percentage of shares subjected to stock restriction agreement (percent)	80%
Shares subjected to stock restriction agreement (shares)	808,238
Vesting period (years)	4 years
Fair value of stock restriction agreement	$ 1,500
Percentage of shares not subjected to stock restriction agreement (percent)	20%
Shares not subjected to stock restriction agreement (shares)	202,058

Acquisitions - Fair Value of As

Acquisitions - Fair Value of Assets and Liabilities Acquired (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 04, 2021	Jan. 31, 2021
Current assets:
Goodwill	$ 21,335	$ 21,335
Denovium
Current assets:
Cash and cash equivalents				$ 158
Accounts receivable				59
Other current assets				1
Intangible assets				2,507
Goodwill				1,055
TOTAL ASSETS				3,780
Current liabilities:
Accounts payable and accrued expenses				109
Deferred tax, net				633
TOTAL LIABILITIES				742
Fair value of net assets acquired and liabilities assumed				$ 3,038
Totient
Current assets:
Cash and cash equivalents			$ 1,751
Prepaid expenses and other current assets			189
Total current assets			1,940
Operating lease right-of-use assets			266
Property and equipment, net			118
Intangible assets			54,600
Goodwill			20,280
Other long-term assets			23
TOTAL ASSETS			77,227
Current liabilities:
Accounts payable			78
Accrued expenses			6,588
Operating lease obligations			122
Total current liabilities			6,788
Operating lease obligations - net of current portion			144
Deferred tax, net			9,012
Other long-term liabilities			24
TOTAL LIABILITIES			15,968
Fair value of net assets acquired and liabilities assumed			$ 61,259

Acquisitions - Finite-lived Int

Acquisitions - Finite-lived Intangible Assets Acquired (Details) - USD ($) $ in Thousands		1 Months Ended
	Jun. 04, 2021	Jan. 31, 2021
Denovium
Business Acquisition
Intangible assets		$ 2,507
Denovium | Denovium Engine
Business Acquisition
Intangible assets		$ 2,507
Estimated Amortization Period (years)		5 years
Totient
Business Acquisition
Intangible assets	$ 54,600
Totient | Minimum | Measurement Input, Discount Rate | Valuation Technique, Discounted Cash Flow
Business Acquisition
Intangible assets measurement input (percent)	18%
Totient | Maximum | Measurement Input, Discount Rate | Valuation Technique, Discounted Cash Flow
Business Acquisition
Intangible assets measurement input (percent)	23%
Totient | Monoclonal antibody library
Business Acquisition
Intangible assets	$ 46,300
Estimated Amortization Period (years)	20 years
Totient | Developed software platform and the related methods patents
Business Acquisition
Intangible assets	$ 8,300
Estimated Amortization Period (years)	15 years

Acquisitions - Totient Narrativ

Acquisitions - Totient Narrative (Details) - USD ($)		3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 04, 2021	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Business Acquisition
Business combination, cash consideration, deferred cash payment, term	1 year
Totient
Business Acquisition
Total cash payments to acquire business including milestone payments	$ 55,000,000
Cash consideration	40,000,000
Aggregate milestone consideration	15,000,000
Business combination, cash consideration, deferred cash payment	$ 8,000,000	$ 8,000,000
Preliminary purchase price adjustments				$ 0
Goodwill, purchase accounting adjustments						$ (1,600,000)
Acquisition costs			$ 900,000		$ 900,000
Totient | Vest On Closing
Business Acquisition
Percentage of shares subject to vest (percent)	25%
Totient | Share Vesting Based On Service
Business Acquisition
Percentage of shares subject to vest (percent)	75%
Vesting period	2 years 6 months
Totient | Common Stock
Business Acquisition
Shares issued as consideration (shares)	2,212,208
Totient | Common Stock | Share Vesting Based On Service
Business Acquisition
Vesting rate (months)	6 months

Acquisitions - Proforma Revenue

Acquisitions - Proforma Revenue (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021
Totient
Business Acquisition, Pro Forma Information
Net loss applicable to common stockholders and unitholders	$ (47,035)	$ (61,116)

Cash equivalents and investme_3

Cash equivalents and investments (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Cash and Cash Equivalents
Amortized cost	$ 50,000
Gross unrealized gains	2
Fair market value	50,002
Cash equivalents	50,002
Short-term investments	0
Long-term investments	0
Money market funds
Cash and Cash Equivalents
Amortized cost	169
Gross unrealized gains	0
Fair market value	169
U.S. treasury bills
Cash and Cash Equivalents
Amortized cost	49,831
Gross unrealized gains	2
Fair market value	$ 49,833

Property and equipment, net (De

Property and equipment, net (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment
Total Cost	$ 65,611	$ 58,495
Less accumulated depreciation and amortization	(10,721)	(6,381)
Property and equipment, net	54,890	52,114
Construction in progress
Property, Plant and Equipment
Total Cost	134	933
Lab Equipment
Property, Plant and Equipment
Total Cost	34,161	27,776
Software
Property, Plant and Equipment
Total Cost	315	311
Furniture, Fixtures and Other
Property, Plant and Equipment
Total Cost	5,043	4,804
Leasehold Improvements
Property, Plant and Equipment
Total Cost	$ 25,958	$ 24,671

Property and equipment, net - N

Property and equipment, net - Narratives (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 2.3	$ 0.9	$ 4.4	$ 1.2

Long-term debt and other borr_3

Long-term debt and other borrowings (Details)

1 Months Ended

3 Months Ended

6 Months Ended

12 Months Ended

Jun. 30, 2022 USD ($)

Mar. 31, 2021 USD ($) shares $ / shares

Jun. 30, 2022 USD ($)

Jun. 30, 2022 USD ($)

Jun. 30, 2021 USD ($)

Dec. 31, 2018 USD ($)

May 11, 2022

Jul. 31, 2021 $ / shares

Feb. 28, 2021

May 31, 2020 USD ($)

Dec. 31, 2019 USD ($) tranche

Jun. 30, 2019

Mar. 31, 2019 USD ($)

Jun. 30, 2018

Debt Instrument

Principal payments on long-term debt

$ 3,698,000

$ 139,000

Proceeds from financing arrangements

$ 9,407,000

$ 0

IPO

Debt Instrument

Issuance price (usd per share) | $ / shares

$ 16

$ 16

2021 Notes | Convertible promissory notes

Debt Instrument

Interest rate (percent)

6%

Principal amount

$ 125,000,000

Discount on offering price (percent)

18%

Shares issued upon conversion of convertible debt (shares) | shares

9,732,593

Line of Credit | LSA

Debt Instrument

Number of tranches | tranche

3

Maximum borrowing capacity

$ 3,000,000

Proceeds from issuance of long-term debt

$ 300,000

Interest rate (percent)

6%

Prepayment premium (percent)

0%

1%

Final payment percentage as a portion of principal amount funded (percent)

3%

Liquidity event fee (percent)

3.50%

Principal payments on long-term debt

$ 2,400,000

Line of Credit | LSA, First Amendment

Debt Instrument

Maximum borrowing capacity

$ 3,000,000

Line of Credit | LSA, Second Amendment

Debt Instrument

Maximum borrowing capacity

$ 5,000,000

Secured Debt | Equipment Financing

Debt Instrument

Proceeds from financing arrangements

$ 9,400,000

Secured Debt | Equipment Financing | Minimum

Debt Instrument

Debt instrument term (years)

42 months

Imputed interest rate (percent)

8%

8%

8%

Secured Debt | Equipment Financing | Maximum

Debt Instrument

Debt instrument term (years)

48 months

Imputed interest rate (percent)

10%

10%

10%

Long-term debt and other borr_4

Long-term debt and other borrowings - Schedule of Maturities of Long-term Debt (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Long-term Debt, Fiscal Year Maturity [Abstract]
2022 (six months remaining)	$ 1,339
2023	3,019
2024	3,019
2025	2,617
2026	852
Thereafter	0
Total future payments	10,846
Less: Imputed interest	(1,586)
Total long-term debt	$ 9,260

Commitment and Contingencies (D

Commitment and Contingencies (Details)	Jun. 30, 2022 USD ($)
Standby Letters of Credit
Line of Credit Facility
Maximum borrowing capacity	$ 1,800,000

Stock-based compensation - Allo

Stock-based compensation - Allocated Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share-based Payment Arrangement, Expensed
Stock-based compensation	$ 4,247	$ 1,442	$ 8,026	$ 3,593
Research and development
Share-based Payment Arrangement, Expensed
Stock-based compensation	1,697	851	3,120	1,927
Selling, general and administrative
Share-based Payment Arrangement, Expensed
Stock-based compensation	$ 2,550	$ 591	$ 4,906	$ 1,666

Stock-based compensation - Rest

Stock-based compensation - Restricted Stock Narratives (Details) - USD ($) $ in Millions	1 Months Ended	6 Months Ended
	Oct. 31, 2020	Jun. 30, 2022	Dec. 31, 2021
2015 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Partner capital units converted (units)	3,329,707
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award
Shares outstanding (shares)		1,821,314	2,585,670
Restricted stock | 2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Conversion of redeemable convertible preferred stock (in shares)	2,671,907
Share based compensation expense not yet recognized other than options		$ 8.4
Share based compensation expense not yet recognized, recognition period (years)		1 year 9 months 18 days
Restricted stock | 2021 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Share based compensation expense not yet recognized other than options		$ 0.5
Share based compensation expense not yet recognized, recognition period (years)		3 years 1 month 6 days
Granted (in shares)		68,175
Shares outstanding (shares)		68,175

Stock-based compensation - Unve

Stock-based compensation - Unvested Rollforward (Details) - $ / shares	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Restricted stock
Nonvested, Number of Shares
Beginning balance, unvested, shares	2,585,670
Repurchased, shares	(249,618)
Vested, shares	(514,738)
Ending balance, unvested, shares	1,821,314
Phantom Units
Nonvested, Number of Shares
Beginning balance, unvested, shares		1,202,435
Granted, shares		0
Vested, shares		0
Exchange of phantom units for cash payment rights, SARs, and/or stock options, shares		(1,202,435)
Ending balance, unvested, shares		0
Nonvested, Weighted Average Strike Price
Beginning balance unvested, usd per share		$ 0.47
Granted, usd per share		0
Vested, usd per share		0
Exchange of phantom units for cash payment rights, SARs, and/or stock options, usd per share		0.47
Ending balance unvested, usd per share		$ 0

Stock-based compensation - Phan

Stock-based compensation - Phantom Units Narratives (Details) - USD ($) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award
Issuance price (usd per share)	$ 3.32
Phantom Units
Share-based Compensation Arrangement by Share-based Payment Award
Shares outstanding (shares)		0	1,202,435
2020 Plan | Phantom Units | Tranche One
Share-based Compensation Arrangement by Share-based Payment Award
Vesting percentage (percent)	25%
Vesting period (years)	1 year
Vesting percentage in liquidity event (percent)	100%
2020 Plan | Phantom Units | Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period (years)	3 years
2020 Plan | SARs
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period (years)	4 years
Shares outstanding (shares)	394,736
Intrinsic value, shares outstanding	$ 1.3

Stock-based compensation - Stoc

Stock-based compensation - Stock Option Narratives (Details) - USD ($) $ / shares in Units, $ in Millions		1 Months Ended	3 Months Ended		6 Months Ended
	Jan. 01, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021	Jul. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award
Fair value of vested options			$ 5		$ 5.8
Exercised					$ 1.8
Share-based compensation arrangement by share-based payment award, options, outstanding, number (in shares)			10,840,480		10,840,480		7,757,401
Share-based compensation arrangement by share-based payment award, options, outstanding, weighted average exercise price (usd per share)			$ 5.14		$ 5.14		$ 3.72
2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Additional shares authorized for issuance (shares)		11,980,029
2021 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Additional shares authorized for issuance (shares)	4,632,401
Shares available for grant (shares)			9,601,512		9,601,512			8,133,750
2021 ESPP
Share-based Compensation Arrangement by Share-based Payment Award
Shares authorized, shares								903,750
Stock options | 2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Weighted average grant date fair value of shares granted (usd per share)			$ 3.16	$ 7.08	$ 4.21	$ 3.87
Share based compensation expense not yet recognized, options			$ 34.2		$ 34.2
Share based compensation expense not yet recognized, recognition period (years)					3 years 1 month 6 days
Stock options | 2020 Plan | Tranche One
Share-based Compensation Arrangement by Share-based Payment Award
Vesting percentage (percent)					25%
Vesting period (years)					1 year
Stock options | 2020 Plan | Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period (years)					3 years
Certain options | 2020 Plan | Tranche Two | Minimum
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period (years)					2 years
Certain options | 2020 Plan | Tranche Two | Maximum
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period (years)					4 years
SARs | 2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period (years)					4 years
SARs | 2020 And 2021 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Share based compensation expense not yet recognized, options			$ 0.7		$ 0.7
Share based compensation expense not yet recognized, recognition period (years)					3 years 1 month 6 days
Share-based compensation arrangement by share-based payment award, options, outstanding, number (in shares)			147,181		147,181
Share-based compensation arrangement by share-based payment award, options, outstanding, weighted average exercise price (usd per share)			$ 5.72		$ 5.72
Deferred compensation liability, classified, noncurrent			$ 0.2		$ 0.2

Stock-based compensation - St_2

Stock-based compensation - Stock Option Rollforward (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Number of Options
Beginning balance, shares	7,757,401
Granted, shares	4,281,834
Exercised, shares	(382,569)
Canceled/Forfeited, shares	(806,439)
Expired, shares	(9,747)
Ending balance, shares	10,840,480	7,757,401
Exercisable, shares	2,629,096
Vested and expected to vest, shares	10,840,480
Weighted Average Exercise Price per Share
Beginning balance, usd per share	$ 3.72
Granted, usd per share	7.23
Exercised, usd per share	1.12
Canceled/Forfeited, usd per share	4.60
Expired, usd per share	1.12
Ending balance, usd per share	5.14	$ 3.72
Exercisable, weighted average price, usd per share	$ 2.22
Weighted Average Remaining Contractual Term (in years)	8 years 9 months 18 days	9 years 2 months 12 days
Exercisable, weighted average remaining contractual term (in years)	8 years 1 month 6 days
Vested and expected to vest, contractual term (in years)	8 years 9 months 18 days
Intrinsic value, shares outstanding	$ 8,313	$ 40,939
Exercisable, aggregate intrinsic value	4,185
Vested and expected to vest, aggregate intrinsic value	$ 8,313

Stock-based compensation - Dete

Stock-based compensation - Determination of Fair Value (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Fair Value Assumptions and Methodology
Volatility		46%
Risk-free interest rate, minimum	2.50%	1.20%	0.80%	0.30%
Risk-free interest rate, maximum	3%	1.30%	3%	1.30%
Dividend Yield	0%	0%	0%	0%
Minimum
Fair Value Assumptions and Methodology
Expected term (in years)	5 years 6 months	6 years	5 years 6 months	3 years 6 months
Volatility	63%		63%	45%
Maximum
Fair Value Assumptions and Methodology
Expected term (in years)	6 years 9 months 18 days	6 years 1 month 6 days	7 years	6 years 1 month 6 days
Volatility	64%		67%	47%

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Assets:
Equity securities without RDFV	$ 1,200	$ 1,200
Total assets	51,202	1,200
Liabilities:
Contingent consideration	12,750	12,000
Total liabilities	12,750	12,000
Money market funds
Assets:
Debt Securities:	169
U.S. treasury bills
Assets:
Debt Securities:	49,833
Level 1
Assets:
Equity securities without RDFV	0	0
Total assets	50,002	0
Liabilities:
Contingent consideration	0	0
Total liabilities	0	0
Level 1 | Money market funds
Assets:
Debt Securities:	169
Level 1 | U.S. treasury bills
Assets:
Debt Securities:	49,833
Level 2
Assets:
Equity securities without RDFV	0	0
Total assets	0	0
Liabilities:
Contingent consideration	0	0
Total liabilities	0	0
Level 2 | Money market funds
Assets:
Debt Securities:	0
Level 2 | U.S. treasury bills
Assets:
Debt Securities:	0
Level 3
Assets:
Equity securities without RDFV	1,200	1,200
Total assets	1,200	1,200
Liabilities:
Contingent consideration	12,750	12,000
Total liabilities	12,750	$ 12,000
Level 3 | Money market funds
Assets:
Debt Securities:	0
Level 3 | U.S. treasury bills
Assets:
Debt Securities:	$ 0

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value Using Significant Unobservable Inputs (Level 3) (Details) - Fair Value, Recurring $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation
Beginning balance	$ 12,000
Change in the fair value	750
Ending balance	12,750
Contingent consideration
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation
Beginning balance	12,000
Change in the fair value	750
Ending balance	$ 12,750

Related party transactions (Det

Related party transactions (Details) - Affiliated Entity - Common Stock - Phoenix Venture Partners II, L.P $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($) $ / shares shares
Related Party Transaction
Issuance of shares upon warrant exercise (in shares) | shares	307,211
Class of warrant or right, exercise price of warrants or rights (usd per share) | $ / shares	$ 0.3027
Issuance of shares upon warrant exercise, value | $	$ 0.1

Net loss per share attributab_3

Net loss per share attributable to common stockholders - Company’s Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Numerator:
Net loss	$ (28,680)	$ (29,494)	$ (41,198)	$ (10,962)	$ (58,174)	$ (52,160)
Cumulative undeclared preferred stock dividends	0		(1,047)		0	(2,042)
Net loss applicable to common stockholders basic	(28,680)		(42,245)		(58,174)	(54,202)
Net loss applicable to common stockholders diluted	$ (28,680)		$ (42,245)		$ (58,174)	$ (54,202)
Denominator:
Weighted-average common shares outstanding, basic (in shares)	90,669,499		17,641,147		90,471,950	17,312,437
Weighted-average common shares outstanding, diluted (in shares)	90,669,499		17,641,147		90,471,950	17,312,437
Net loss per share, basic (usd per share)	$ (0.32)		$ (2.39)		$ (0.64)	$ (3.13)
Net loss per share, diluted (usd per share)	$ (0.32)		$ (2.39)		$ (0.64)	$ (3.13)

Net loss per share attributab_4

Net loss per share attributable to common stockholders - Anti-dilutive Securities (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Redeemable Convertible Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	0	46,266,256	0	46,033,714
Redeemable convertible preferred stock warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	0	307,211	0	307,211
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	10,785,909	6,038,919	10,139,442	4,677,249
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	68,175	0	48,589	0
Unvested restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	2,123,409	2,554,598	2,296,359	2,138,146

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Effective income tax rate, continuing operations (percent)	0.90%		(0.60%)
Income tax expense (benefit)	$ (270)	$ (5,617)	$ 351	$ (6,094)
Unrecognized tax benefits	$ 1,000		$ 1,000