Filed Pursuant to Rule 424(b)(3)
Registration No. 333- 259954
Prospectus Supplement No. 2
(To Prospectus dated October 24, 2022)
This prospectus supplement updates, amends and supplements the prospectus dated October 24, 2022 (the “Prospectus”), which forms a part of our Registration Statement on Form S-1 (Registration No. 333-259954). Capitalized terms used in this Prospectus Supplement and not otherwise defined herein have the meanings specified in the Prospectus.
This Prospectus Supplement updates, amends and supplements the information in the Prospectus with the information contained in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 28, 2023 (the “Annual Report”). Accordingly, we have attached the Annual Report to this Prospectus Supplement.
You should read this Prospectus Supplement in conjunction with the Prospectus, including any amendments and supplements thereto. This Prospectus Supplement is qualified by reference to the Prospectus, except to the extent that the information contained in this Prospectus Supplement supersedes the information contained in the Prospectus. This Prospectus Supplement is not complete without, and may not be utilized except in connection with, the Prospectus.
Investing in our securities involves significant risks. See “Risk Factors” beginning on page 7 of the Prospectus and in Item 1A of the Annual Report to read about factors you should consider before investing in our securities.
Neither the SEC nor any state securities commission has approved or disapproved of these securities or determined if the Prospectus or this prospectus supplement is truthful or complete. Any representation to the contrary is a criminal offense.
The date of this prospectus supplement is March 28, 2023
ý | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 85-4298912 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Common Stock, $0.0001 par value | SLGC | Nasdaq Capital Market | ||||||||||||
Warrants to purchase Common Stock | SLGCW | Nasdaq Capital Market |
Large accelerated filer | Accelerated filer | Non-accelerated filer | Smaller reporting company | Emerging growth company | ||||||||||||||||||||||
o | o | ý | ý | ý |
Page | ||||||||
Year Ended December 31, | Change | ||||||||||||||||||||||
(in thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Assay services revenue | $ | 63,038 | $ | 68,038 | $ | (5,000) | (7) | % | |||||||||||||||
Product revenue | 4,243 | 1,277 | 2,966 | NM | |||||||||||||||||||
Collaboration revenue | 3,051 | 3,051 | — | — | % | ||||||||||||||||||
Other revenue | 27,334 | 9,260 | 18,074 | 195 | % | ||||||||||||||||||
Total revenue | $ | 97,666 | $ | 81,626 | $ | 16,040 | 20 | % |
Year Ended December 31, | Change | ||||||||||||||||||||||
(in thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
Cost of assay services revenue | $ | 41,419 | $ | 32,782 | $ | 8,637 | 26 | % | |||||||||||||||
Cost of product revenue | 1,945 | 681 | 1,264 | 186 | % | ||||||||||||||||||
Total cost of revenue | $ | 43,364 | $ | 33,463 | $ | 9,901 | 30 | % |
Year Ended December 31, | Change | ||||||||||||||||||||||
(in thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
Research and development | $ | 73,444 | $ | 43,496 | $ | 29,948 | 69 | % |
Year Ended December 31, | Change | ||||||||||||||||||||||
(in thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
Selling, general and administrative | $ | 156,619 | $ | 77,971 | $ | 78,648 | 101 | % |
Year Ended December 31, | Change | ||||||||||||||||||||||
(in thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest income and other, net | $ | 8,049 | $ | 263 | $ | 7,786 | NM | ||||||||||||||||
Interest expense | — | (1,324) | 1,324 | (100) | % | ||||||||||||||||||
Change in fair value of warrant liabilities | 30,968 | (6,952) | 37,920 | NM | |||||||||||||||||||
Change in fair value of earn-out liability | 26,870 | (1,869) | 28,739 | NM | |||||||||||||||||||
Loss on extinguishment of debt, net | — | (4,323) | 4,323 | (100) | % | ||||||||||||||||||
Total other income (expense) | $ | 65,887 | $ | (14,205) | $ | 80,092 | NM |
Year Ended December 31, | Change | ||||||||||||||||||||||
(in thousands) | 2022 | 2021 | $ | % | |||||||||||||||||||
Income tax benefit (provision) | $ | 717 | $ | (38) | $ | 755 | NM |
Year Ended December 31, | ||||||||||||||
(in thousands) | 2022 | 2021 | ||||||||||||
Net loss | $ | (109,157) | $ | (87,547) | ||||||||||
Adjustments to reconcile to EBITDA: | ||||||||||||||
Interest income and other, net | (8,049) | (263) | ||||||||||||
Interest expense | — | 1,324 | ||||||||||||
Income tax benefit (provision) | (717) | 38 | ||||||||||||
Depreciation and amortization | 4,571 | 2,569 | ||||||||||||
EBITDA | (113,352) | (83,879) | ||||||||||||
Adjustments to reconcile to Adjusted EBITDA: | ||||||||||||||
Loss on extinguishment debt, net (1) | — | 4,323 | ||||||||||||
Change in fair value of warrant liabilities (2) | (30,968) | 6,952 | ||||||||||||
Change in fair value of earn-out liability (3) | (26,870) | 1,869 | ||||||||||||
Stock-based compensation expense related to the secondary sale transaction (4) | — | 6,461 | ||||||||||||
Stock compensation expense related to equity award modifications (5) | 7,661 | 700 | ||||||||||||
Restructuring charges (6) | 2,888 | — | ||||||||||||
Adjusted EBITDA | $ | (160,641) | $ | (63,574) |
Year Ended December 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Net cash used in operating activities | $ | (100,669) | $ | (40,384) | |||||||
Net cash provided by (used in) investing activities | 82,542 | (182,019) | |||||||||
Net cash provided by financing activities | 5,185 | 497,491 | |||||||||
Effect of exchange rates on cash, cash equivalents and restricted cash | (43) | (14) | |||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | $ | (12,985) | $ | 275,074 |
Page | ||||||||
Report of Independent Registered Public Accounting Firm (PCAOB ID: 42) | ||||||||
December 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
ASSETS | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | 421,830 | $ | 439,488 | ||||||||||
Investments | 117,758 | 218,218 | ||||||||||||
Accounts receivable, net | 17,006 | 17,074 | ||||||||||||
Inventory | 13,897 | 11,213 | ||||||||||||
Deferred costs of services | 1,337 | 462 | ||||||||||||
Prepaid expenses and other current assets | 9,873 | 5,097 | ||||||||||||
Total current assets | 581,701 | 691,552 | ||||||||||||
Non-current inventory | 4,643 | 4,085 | ||||||||||||
Accounts receivable, net of current portion | 9,284 | — | ||||||||||||
Property and equipment, net | 19,564 | 9,557 | ||||||||||||
Other long-term assets | 5,083 | 908 | ||||||||||||
Intangible assets | 16,700 | — | ||||||||||||
Goodwill | 10,399 | — | ||||||||||||
Total assets | $ | 647,374 | $ | 706,102 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
Current liabilities | ||||||||||||||
Accounts payable | $ | 16,794 | $ | 15,089 | ||||||||||
Accrued liabilities | 20,678 | 11,109 | ||||||||||||
Deferred revenue | 3,383 | 3,021 | ||||||||||||
Other current liabilities | 2,477 | 66 | ||||||||||||
Total current liabilities | 43,332 | 29,285 | ||||||||||||
Warrant liabilities | 4,213 | 35,181 | ||||||||||||
Earn-out liability | 15 | 26,885 | ||||||||||||
Deferred revenue, net of current portion | 31,732 | 2,364 | ||||||||||||
Other long-term liabilities | 5,524 | 363 | ||||||||||||
Total liabilities | 84,816 | 94,078 | ||||||||||||
Commitments and contingencies (Note 10) | ||||||||||||||
Stockholders’ equity: | ||||||||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; no shares issued and outstanding at December 31, 2022 and 2021 | — | — | ||||||||||||
Common stock, $0.0001 par value; 600,000,000 shares authorized; 187,647,973 and 181,552,241 shares issued and outstanding at December 31, 2022 and 2021, respectively | 19 | 18 | ||||||||||||
Additional paid-in capital | 1,171,122 | 1,110,991 | ||||||||||||
Accumulated other comprehensive loss | (513) | (72) | ||||||||||||
Accumulated deficit | (608,070) | (498,913) | ||||||||||||
Total stockholders’ equity | 562,558 | 612,024 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 647,374 | $ | 706,102 |
Year Ended December 31, | |||||||||||
2022 | 2021 | ||||||||||
Revenue | |||||||||||
Assay services revenue | $ | 63,038 | $ | 68,038 | |||||||
Product revenue | 4,243 | 1,277 | |||||||||
Collaboration revenue | 3,051 | 3,051 | |||||||||
Other revenue | 27,334 | 9,260 | |||||||||
Total revenue | 97,666 | 81,626 | |||||||||
Operating expenses | |||||||||||
Cost of assay services revenue | 41,419 | 32,782 | |||||||||
Cost of product revenue | 1,945 | 681 | |||||||||
Research and development | 73,444 | 43,496 | |||||||||
Selling, general and administrative | 156,619 | 77,971 | |||||||||
Total operating expenses | 273,427 | 154,930 | |||||||||
Loss from operations | (175,761) | (73,304) | |||||||||
Other income (expense) | |||||||||||
Interest income and other, net | 8,049 | 263 | |||||||||
Interest expense | — | (1,324) | |||||||||
Change in fair value of warrant liabilities | 30,968 | (6,952) | |||||||||
Change in fair value of earn-out liability | 26,870 | (1,869) | |||||||||
Loss on extinguishment of debt, net | — | (4,323) | |||||||||
Total other income (expense) | 65,887 | (14,205) | |||||||||
Net loss before income tax benefit (provision) | (109,874) | (87,509) | |||||||||
Income tax benefit (provision) | 717 | (38) | |||||||||
Net loss | $ | (109,157) | $ | (87,547) | |||||||
Other comprehensive loss | |||||||||||
Net unrealized loss on available-for-sale securities | $ | (424) | $ | (68) | |||||||
Foreign currency translation loss | (17) | (2) | |||||||||
Total other comprehensive loss | (441) | (70) | |||||||||
Comprehensive loss | $ | (109,598) | $ | (87,617) | |||||||
Net loss per share, basic and diluted | $ | (0.59) | $ | (0.64) | |||||||
Weighted-average shares used to compute net loss per share, basic and diluted | 183,991,643 | 137,157,283 |
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | 114,266,515 | 11 | 597,274 | (2) | (411,366) | 185,917 | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of Common Stock upon exercise of options | 1,311,326 | — | 4,001 | — | — | 4,001 | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of Common Stock for services | 228,199 | — | 1,337 | — | — | 1,337 | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of Common Stock upon conversion of convertible debt | 571,642 | — | 4,631 | — | — | 4,631 | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 27,042 | — | — | 27,042 | ||||||||||||||||||||||||||||||||||||||||||||
Surrender of shares in cashless exercise | (15,189) | — | (56) | — | — | (56) | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of Common Stock upon SPAC Merger, net of transaction costs of $35,111 | 28,689,748 | 3 | 119,568 | — | — | 119,571 | ||||||||||||||||||||||||||||||||||||||||||||
Common Stock issued pursuant to the PIPE Investment, net of transaction costs of $7,802 | 36,500,000 | 4 | 357,194 | — | — | 357,198 | ||||||||||||||||||||||||||||||||||||||||||||
Net unrealized loss on available-for-sale securities | — | — | — | (68) | — | (68) | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation loss | — | — | — | (2) | — | (2) | ||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | (87,547) | (87,547) | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 181,552,241 | $ | 18 | $ | 1,110,991 | $ | (72) | $ | (498,913) | $ | 612,024 | |||||||||||||||||||||||||||||||||||||||
Issuance of Common Stock upon vesting of RSUs | 12,031 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of Common Stock upon exercise of options | 1,906,530 | — | 4,813 | — | — | 4,813 | ||||||||||||||||||||||||||||||||||||||||||||
Shares issued under employee stock purchase plan | 146,699 | — | 372 | — | — | 372 | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of Common Stock for services | — | — | 50 | — | — | 50 | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 43,064 | — | — | 43,064 | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of Common Stock upon Palamedrix acquisition | 4,030,472 | 1 | 11,832 | — | — | 11,833 | ||||||||||||||||||||||||||||||||||||||||||||
Net unrealized loss on available-for-sale securities | — | — | — | (424) | — | (424) | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation loss | — | — | — | (17) | — | (17) | ||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | (109,157) | (109,157) | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | 187,647,973 | $ | 19 | $ | 1,171,122 | $ | (513) | $ | (608,070) | $ | 562,558 |
Year Ended December 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Operating activities | ||||||||||||||
Net loss | $ | (109,157) | $ | (87,547) | ||||||||||
Adjustments to reconcile net loss to cash used in operating activities: | ||||||||||||||
Stock-based compensation expense | 43,609 | 28,415 | ||||||||||||
Depreciation and amortization | 4,571 | 2,569 | ||||||||||||
Noncash rent expense | (186) | — | ||||||||||||
Amortization of debt issuance costs, discounts and premiums | — | 258 | ||||||||||||
Change in fair value of warrant liabilities | (30,968) | 6,952 | ||||||||||||
Change in fair value of earn-out liability | (26,870) | 1,869 | ||||||||||||
Change in fair value contingent consideration | 167 | — | ||||||||||||
Amortization of premium (accretion of discount) on available-for-sale securities, net | (977) | 380 | ||||||||||||
Provision for excess and obsolete inventory | 490 | 703 | ||||||||||||
Provision for (recovery of) doubtful accounts | 150 | (8) | ||||||||||||
Cloud computing arrangement expenditures | (11,127) | (3,412) | ||||||||||||
Loss on extinguishment of debt, net | — | 4,323 | ||||||||||||
Loss on disposal of property and equipment | 2,411 | — | ||||||||||||
Paid-in-kind interest | — | 165 | ||||||||||||
Income tax benefit | (806) | — | ||||||||||||
Other | 15 | 19 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Accounts receivable | (9,366) | 383 | ||||||||||||
Inventory | (3,732) | (2,957) | ||||||||||||
Deferred costs of services | (875) | 988 | ||||||||||||
Prepaid expenses and other current assets | 133 | (3,909) | ||||||||||||
Other long-term assets | (106) | — | ||||||||||||
Accounts payable | 2,340 | 6,460 | ||||||||||||
Deferred revenue | 29,730 | 208 | ||||||||||||
Accrued and other liabilities | 9,885 | 4,509 | ||||||||||||
Payment of paid-in-kind interest on extinguishment of debt | — | (752) | ||||||||||||
Net cash used in operating activities | (100,669) | (40,384) | ||||||||||||
Investing activities | ||||||||||||||
Palamedrix acquisition, net of cash acquired of $2,521 | (13,256) | — | ||||||||||||
Purchases of property and equipment, net of proceeds from sales | (5,215) | (3,307) | ||||||||||||
Purchases of available-for-sale securities | (186,687) | (279,918) | ||||||||||||
Proceeds from maturities of available-for-sale securities | 287,700 | 101,206 | ||||||||||||
Net cash provided by (used in) investing activities | 82,542 | (182,019) | ||||||||||||
Financing activities | ||||||||||||||
Proceeds from exercise of stock options and employee stock purchase plan | 5,185 | 3,947 | ||||||||||||
Repayment of long-term debt | — | (36,512) | ||||||||||||
Proceeds from PIPE Investment, net of transaction costs | — | 357,198 | ||||||||||||
Proceeds from SPAC Merger, net of transaction costs | — | 172,858 | ||||||||||||
Net cash provided by financing activities | 5,185 | 497,491 | ||||||||||||
Effect of exchange rates on cash, cash equivalents and restricted cash | (43) | (14) | ||||||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (12,985) | 275,074 | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 440,268 | 165,194 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 427,283 | $ | 440,268 | ||||||||||
Year Ended December 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Supplemental cash flow information: | ||||||||||||||
Cash paid for interest | $ | — | $ | 1,627 | ||||||||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||||||||
Purchase of property and equipment included in accounts payable | $ | 395 | $ | 615 | ||||||||||
Operating lease assets obtained in exchange for lease obligations | 5,318 | — | ||||||||||||
Issuance of Common Stock upon Palamedrix Acquisition | 11,832 | — | ||||||||||||
Contingent consideration payable for Palamedrix Acquisition | 1,448 | — | ||||||||||||
Issuance of Common Stock upon SPAC Merger | — | 151,082 | ||||||||||||
Surrender of shares in cashless exercise | — | 56 | ||||||||||||
Issuance of Common Stock for services | 50 | 1,334 | ||||||||||||
Forgiveness of Paycheck Protection Program loan and accrued interest | — | 3,561 | ||||||||||||
Issuance of Common Stock for conversion of convertible debt | — | 4,631 | ||||||||||||
Reconciliation of cash, cash equivalents and restricted cash | ||||||||||||||
Cash and cash equivalents | $ | 421,830 | $ | 439,488 | ||||||||||
Restricted cash included in prepaid expenses and other current assets | 4,658 | — | ||||||||||||
Restricted cash included in other long-term assets | 795 | 780 | ||||||||||||
Total cash, cash equivalents and restricted cash at end of period | $ | 427,283 | $ | 440,268 |
Year Ended December 31, 2021 | |||||||||||||||||
(in thousands) | As Previously Reported | Reclassification | Revised | ||||||||||||||
Operating Activities | |||||||||||||||||
Cloud computing arrangement expenditures | $ | — | $ | (3,412) | $ | (3,412) | |||||||||||
Net cash used in operating activities | $ | (36,972) | $ | (3,412) | $ | (40,384) | |||||||||||
Investing Activities | |||||||||||||||||
Purchases of property and equipment, net of proceeds from sales | (6,719) | 3,412 | (3,307) | ||||||||||||||
Net cash provided by (used in) investing activities | $ | (185,431) | $ | 3,412 | $ | (182,019) | |||||||||||
Supplemental disclosure of non-cash investing and financing activities: | |||||||||||||||||
Purchase of property and equipment included in accounts payable | $ | 1,492 | $ | (877) | $ | 615 |
Accounts Receivable | Revenue | ||||||||||||||||||||||
December 31, | Year Ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Customer A | 11% | 10% | 19 | % | 21 | % | |||||||||||||||||
Customer B | * | * | * | 13 | % | ||||||||||||||||||
Customer C | 51% | 20% | 27 | % | 10 | % | |||||||||||||||||
Customer D | * | 26% | * | * | |||||||||||||||||||
December 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Accounts receivable | $ | 26,441 | $ | 17,146 | |||||||
Less: allowance for doubtful accounts | (151) | (72) | |||||||||
Accounts receivable, net | $ | 26,290 | $ | 17,074 | |||||||
Accounts receivable, net (current) | $ | 17,006 | $ | 17,074 | |||||||
Accounts receivable, net of current portion | $ | 9,284 | $ | — |
Shares | |||||
CMLS II Class A common stock, outstanding prior to SPAC Merger | 27,600,000 | ||||
Less: CMLS II Redemption shares | (809,850) | ||||
Class A common stock of CMLS II, net of redemptions | 26,790,150 | ||||
Conversion of CMLS II Founder Shares for Common Stock | 6,900,000 | ||||
Shares issued pursuant to PIPE Investment | 36,500,000 | ||||
Conversion of Old SomaLogic shares for Common Stock (1) | 110,973,213 | ||||
Total shares of SomaLogic Common Stock, immediately after SPAC Merger | 181,163,363 |
(in thousands) | |||||
Cash | $ | 15,778 | |||
Common Stock | 11,832 | ||||
Contingent consideration | 1,448 | ||||
Fair value of replaced Palamedrix equity awards relating to pre-combination service | 625 | ||||
Total consideration transferred | $ | 29,683 |
(in thousands) | |||||
Cash and cash equivalents | $ | 2,521 | |||
Prepaid expenses and other current assets | 251 | ||||
Property and equipment | 1,246 | ||||
Intangible assets | 16,700 | ||||
Other long-term assets | 1,289 | ||||
Accounts payable | (68) | ||||
Accrued liabilities | (81) | ||||
Other current liabilities | (634) | ||||
Deferred income taxes, net | (1,390) | ||||
Other long-term liabilities | (550) | ||||
Net identifiable assets acquired | 19,284 | ||||
Goodwill | 10,399 | ||||
Total consideration transferred | $ | 29,683 |
Pro forma year ended | ||||||||||||||
(in thousands) | December 31, 2022 (Unaudited) | December 31, 2021 (Unaudited) | ||||||||||||
Net loss | $ | (111,077) | $ | (100,837) |
Pro forma year ended | |||||||||||
(in thousands) | December 31, 2022 (Unaudited) | December 31, 2021 (Unaudited) | |||||||||
Increase (decrease) to net loss to adjust for transaction costs | $ | 4,877 | $ | (4,877) | |||||||
Increase (decrease) to net loss to reflect income tax benefit from the release of a portion of the valuation allowance | (622) | 622 | |||||||||
Increase (decrease) to net loss to adjust for compensation expense associated with replacement awards | 62 | (3,161) |
Year Ended December 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Assay services revenue | $ | 63,038 | $ | 68,038 | |||||||
Product revenue | 4,243 | 1,277 | |||||||||
Collaboration revenue | 3,051 | 3,051 | |||||||||
Other revenue: | |||||||||||
Royalties | 26,190 | 8,515 | |||||||||
Other | 1,144 | 745 | |||||||||
Total other revenue | 27,334 | 9,260 | |||||||||
Total revenue | $ | 97,666 | $ | 81,626 |
December 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Balance at beginning of period | $ | 5,385 | $ | 5,177 | |||||||
Recognition of revenue included in balance at beginning of period | (2,772) | (1,762) | |||||||||
Revenue deferred during the period, net of revenue recognized | 32,502 | 1,970 | |||||||||
Balance at end of period | $ | 35,115 | $ | 5,385 |
As of December 31, 2022 (in thousands) | Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Aggregate Fair Value | Fair Value Level | ||||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||||||
Cash | $ | 44,045 | $ | — | $ | — | $ | 44,045 | Level 1 | ||||||||||||||||||||
Money market funds | 377,785 | — | — | 377,785 | Level 1 | ||||||||||||||||||||||||
Total cash and cash equivalents | 421,830 | — | — | 421,830 | |||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||
Commercial paper | 58,794 | — | (195) | 58,599 | Level 2 | ||||||||||||||||||||||||
U.S. Treasuries | 35,252 | — | (175) | 35,077 | Level 2 | ||||||||||||||||||||||||
Asset-backed securities | — | — | — | — | Level 2 | ||||||||||||||||||||||||
Corporate bonds | 11,782 | — | (39) | 11,743 | Level 2 | ||||||||||||||||||||||||
Agency bonds | 12,426 | — | (87) | 12,339 | Level 2 | ||||||||||||||||||||||||
Total investments | 118,254 | — | (496) | 117,758 | |||||||||||||||||||||||||
Total assets measured at fair value on a recurring basis | $ | 540,084 | $ | — | $ | (496) | $ | 539,588 |
As of December 31, 2021 (in thousands) | Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Aggregate Fair Value | Fair Value Level | ||||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||||||
Cash | $ | 114,533 | $ | — | $ | — | $ | 114,533 | Level 1 | ||||||||||||||||||||
Money market funds | 324,955 | — | — | 324,955 | Level 1 | ||||||||||||||||||||||||
Total cash and cash equivalents | 439,488 | — | — | 439,488 | |||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||
Commercial paper | 177,852 | 16 | (57) | 177,811 | Level 2 | ||||||||||||||||||||||||
U.S. Treasuries | 12,021 | — | (9) | 12,012 | Level 2 | ||||||||||||||||||||||||
Asset-backed securities | 12,084 | — | (8) | 12,076 | Level 2 | ||||||||||||||||||||||||
Corporate bonds | 16,332 | — | (13) | 16,319 | Level 2 | ||||||||||||||||||||||||
Total investments | 218,289 | 16 | (87) | 218,218 | |||||||||||||||||||||||||
Total assets measured at fair value on a recurring basis | $ | 657,777 | $ | 16 | $ | (87) | $ | 657,706 |
December 31, | Fair Value | ||||||||||||||||
(in thousands) | 2022 | 2021 | Level | ||||||||||||||
Liabilities: | |||||||||||||||||
Warrant liability - Public Warrants | $ | 2,208 | $ | 18,437 | Level 1 | ||||||||||||
Warrant liability - Private Placement Warrants | 2,005 | 16,744 | Level 2 | ||||||||||||||
Earn-out liability | 15 | 26,885 | Level 3 | ||||||||||||||
Milestone contingent consideration | 1,165 | — | Level 3 | ||||||||||||||
Holdback contingent consideration | 450 | — | Level 3 | ||||||||||||||
Total liabilities measured at fair value on a recurring basis | $ | 5,843 | $ | 62,066 |
December 31, 2022 | December 31, 2021 | |||||||||||||
Stock price on valuation date | $ | 2.51 | $ | 11.64 | ||||||||||
Volatility | 78.10 | % | 85.60 | % | ||||||||||
Risk-free rate | 4.75 | % | 0.34 | % | ||||||||||
Dividend yield | — | % | — | % |
(in thousands) | Fair Value | |||||||
Balance as of Fair value of earn-out liability at Closing Date | $ | 25,016 | ||||||
Change in fair value of earn-out liability | 1,869 | |||||||
Balance as of December 31, 2021 | $ | 26,885 | ||||||
Change in fair value of earn-out liability | (26,870) | |||||||
Balance as of December 31, 2022 | $ | 15 |
December 31, 2022 | ||||||||
Volatility | 35.0 | % | ||||||
Risk-free rate | 4.0 | % | ||||||
Weighted average cost of capital | 30.0 | % | ||||||
Cost of debt | 10.0 | % |
(in thousands) | Fair Value | ||||
Fair value of milestone contingent consideration at date of Palamedrix Acquisition | $ | 998 | |||
Change in fair value of milestone contingent consideration | 167 | ||||
Balance as of December 31, 2022 | $ | 1,165 |
December 31, 2022 | ||||||||
Cost of debt | 10.2 | % |
(in thousands) | December 31, 2022 | ||||||||||
Operating lease cost (1) | $ | 6,879 | |||||||||
Short-term lease cost | 959 | ||||||||||
Variable lease cost | 46 | ||||||||||
Total lease cost | $ | 7,884 |
(in thousands) | December 31, 2022 | ||||
2023 | $ | 2,561 | |||
2024 | 1,143 | ||||
2025 | 834 | ||||
2026 | 143 | ||||
Thereafter | — | ||||
Total | 4,681 | ||||
Less: amount of lease payments representing interest | (141) | ||||
Present value of future lease payments | 4,540 | ||||
Less: current operating lease liabilities (included in other current liabilities) | (2,477) | ||||
Long-term operating lease liabilities (included in other long-term liabilities) | $ | 2,063 |
December 31, 2022 | |||||
Weighted average remaining lease term | 2.3 years | ||||
Weighted average discount rate | 2.5 | % |
December 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Raw materials | $ | 16,710 | $ | 15,030 | |||||||
Work in process | 1,191 | 175 | |||||||||
Finished goods | 639 | 93 | |||||||||
Total inventory | $ | 18,540 | $ | 15,298 | |||||||
Inventory (current) | $ | 13,897 | $ | 11,213 | |||||||
Non-current inventory | $ | 4,643 | $ | 4,085 |
December 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Lab equipment | $ | 14,978 | $ | 10,504 | |||||||
Computer equipment | 1,600 | 1,416 | |||||||||
Furniture and fixtures | 1,343 | 951 | |||||||||
Software | 891 | 1,081 | |||||||||
Cloud computing arrangements | 12,520 | 3,785 | |||||||||
Leasehold improvements | 2,395 | 2,275 | |||||||||
Construction in progress | 3,736 | 4,789 | |||||||||
Total property and equipment, at cost | 37,463 | 24,801 | |||||||||
Less: Accumulated depreciation and amortization | (17,899) | (15,244) | |||||||||
Property and equipment, net | $ | 19,564 | $ | 9,557 |
December 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Accrued compensation | 13,897 | 9,832 | |||||||||
Accrued restructuring costs | 2,223 | — | |||||||||
Accrued lease termination fee | 2,500 | — | |||||||||
Accrued real estate agent commission | 764 | — | |||||||||
Accrued charitable contributions | — | 400 | |||||||||
Accrued medical claims | 663 | 398 | |||||||||
Other | 631 | 479 | |||||||||
Total accrued liabilities | $ | 20,678 | $ | 11,109 |
Notes to Consolidated Financial Statements
Notes to Consolidated Financial Statements
Year Ended December 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Cost of assay services revenue | $ | 1,080 | $ | 633 | |||||||
Cost of product revenue | 53 | 14 | |||||||||
Research and development | 8,186 | 10,958 | |||||||||
Selling, general and administrative | 34,290 | 16,810 | |||||||||
Total stock-based compensation | $ | 43,609 | $ | 28,415 |
Stock Options | Weighted Average Exercise Price (per share) | Weighted Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value (in thousands) | ||||||||||||||||||||
December 31, 2021 | 19,702,845 | $ | 5.83 | ||||||||||||||||||||
Granted | 7,361,072 | $ | 7.13 | ||||||||||||||||||||
Exercised | (1,906,530) | $ | 2.52 | ||||||||||||||||||||
Forfeited | (1,616,193) | $ | 6.8 | ||||||||||||||||||||
Expired | — | $ | — | ||||||||||||||||||||
Outstanding as of December 31, 2022 | 23,541,194 | $ | 6.44 | 8.17 | $ | 368 | |||||||||||||||||
Exercisable as of December 31, 2022 | 11,647,109 | $ | 5.57 | 7.41 | $ | 368 | |||||||||||||||||
Vested and expected to vest as of December 31, 2022 | 20,887,358 | $ | 6.33 | 8.07 | $ | 368 |
Notes to Consolidated Financial Statements
Year Ended December 31, | |||||||||||
2022 | 2021 | ||||||||||
Expected dividend yield | — | % | — | % | |||||||
Expected volatility | 76.4 – 80.3% | 71.4 – 92.8% | |||||||||
Risk-free interest rate | 1.58 – 4.16% | 0.64 – 1.38% | |||||||||
Expected weighted-average life of options | 6.03 years | 6.04 years |
RSUs | Weighted-Average Grant Date Fair Value Per Share | ||||||||||
Unvested at December 31, 2021 | — | $ | — | ||||||||
Granted | 3,330,009 | $ | 4.65 | ||||||||
Vested | (12,031) | $ | 9.08 | ||||||||
Forfeited | (233,599) | $ | 5.84 | ||||||||
Unvested at December 31, 2022 | 3,084,379 | $ | 4.55 | ||||||||
Unrecognized stock-based compensation expense at December 31, 2022 (in millions) | $ | 8.6 | |||||||||
Weighted average remaining period at December 31, 2022 | 2.84 years |
Notes to Consolidated Financial Statements
Year Ended December 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Current income tax expense (benefit) | |||||||||||
Federal | $ | — | $ | — | |||||||
State | 76 | 17 | |||||||||
Foreign | 13 | 21 | |||||||||
89 | 38 | ||||||||||
Deferred tax expense (benefit) | |||||||||||
Federal | (982) | — | |||||||||
State | 176 | — | |||||||||
Foreign | — | — | |||||||||
(806) | — | ||||||||||
Provision for income taxes | $ | (717) | $ | 38 |
Notes to Consolidated Financial Statements
Year Ended December 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Income tax benefit at the federal statutory rate | $ | (23,073) | $ | (18,404) | |||||||
State income taxes, net of federal income tax benefit | (5,296) | (3,008) | |||||||||
Nondeductible stock-based compensation | (4,804) | 1,049 | |||||||||
Expiration of net operating loss and research and development credits | 3,084 | 3,244 | |||||||||
Change in valuation allowance | 36,441 | 15,092 | |||||||||
Other permanent items | (5,658) | 1,311 | |||||||||
Research and development credits | (2,691) | (1,110) | |||||||||
Return to provision adjustments | 829 | 855 | |||||||||
Other, net | 451 | 1,009 | |||||||||
Provision for income taxes | $ | (717) | $ | 38 |
December 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Deferred income tax assets: | |||||||||||
Net operating loss carryforwards | $ | 104,666 | $ | 98,032 | |||||||
Research and development credits | 13,780 | 11,264 | |||||||||
Depreciation and amortization | 288 | 598 | |||||||||
Deferred revenue | 8,548 | 1,344 | |||||||||
Accrued expenses and non-deductible reserves | 471 | 200 | |||||||||
Compensation accruals | 2,415 | 1,796 | |||||||||
Stock-based compensation | 19,065 | 11,952 | |||||||||
Interest expense carryforward | 4,920 | 6,628 | |||||||||
Section 174 expense | 17,714 | — | |||||||||
Lease liability | 1,105 | — | |||||||||
Other | 862 | 1,139 | |||||||||
173,834 | 132,953 | ||||||||||
Valuation allowance | (169,394) | (132,953) | |||||||||
Deferred tax assets (net) | 4,440 | — | |||||||||
Deferred income tax liabilities: | |||||||||||
Intangible assets | (4,065) | — | |||||||||
Right of use asset | (960) | $ | — | ||||||||
Net deferred income tax liabilities | $ | (585) | $ | — |
Notes to Consolidated Financial Statements
December 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Unrecognized tax benefit – beginning balance | $ | 1,251 | $ | 1,176 | |||||||
Increase related to tax positions taken in the current year | 269 | 111 | |||||||||
Increase related to tax positions taken in the prior year | — | — | |||||||||
Decrease related to tax positions taken in the prior year | (38) | (36) | |||||||||
Unrecognized tax benefit – ending balance | $ | 1,482 | $ | 1,251 |
Year Ended December 31, | |||||||||||
(in thousands, except share and per share data) | 2022 | 2021 | |||||||||
Net loss | $ | (109,157) | $ | (87,547) | |||||||
Weighted-average shares outstanding, basic and diluted | 183,991,643 | 137,157,283 | |||||||||
Net loss per share, basic and diluted | $ | (0.59) | $ | (0.64) |
Notes to Consolidated Financial Statements
Year Ended December 31, | |||||||||||
2022 | 2021 | ||||||||||
Anti-dilutive shares: | |||||||||||
Stock options to purchase common stock | 23,541,194 | 19,702,845 | |||||||||
Public Warrants and Private Placement Warrants | 10,533,324 | 10,533,324 | |||||||||
Unvested RSUs outstanding | 3,084,379 | — | |||||||||
Replacement awards subject to vesting conditions | 1,209,801 | — | |||||||||
Total anti-dilutive shares | 38,368,698 | 30,236,169 |
(in thousands) | Year Ended December 31, 2022 | ||||
Cost of assay services revenue | $ | 284 | |||
Research and development | 1,126 | ||||
Selling, general and administrative | 1,478 | ||||
Total employee severance and benefits | $ | 2,888 |
(in thousands) | Year Ended December 31, 2022 | ||||
Beginning balance | $ | — | |||
Accruals | 2,223 | ||||
Payments | — | ||||
Balance at December 31, 2022 | $ | 2,223 |
Notes to Consolidated Financial Statements
Incorporated by Reference | ||||||||||||||||||||||||||
Exhibit Number | Description | Form | Exhibit | Filing Date | ||||||||||||||||||||||
2.1† | S-4/A | 2.1 | 8/5/2021 | |||||||||||||||||||||||
2.2# | 8-K | 2.1 | 7/27/2022 | |||||||||||||||||||||||
3.1 | 8-A/A | 3.1 | 9/1/2021 | |||||||||||||||||||||||
3.2 | 8-A/A | 3.1 | 9/1/2021 | |||||||||||||||||||||||
4.1 | S-4/A | 4.1 | 8/5/2021 | |||||||||||||||||||||||
4.2 | 8-K | 10.1 | 2/26/2021 | |||||||||||||||||||||||
4.3 | 10-K | 4.2 | 3/29/2022 | |||||||||||||||||||||||
10.1+ | S-4/A | 10.1 | 8/5/2021 | |||||||||||||||||||||||
10.2+ | S-4/A | 10.2 | 8/5/2021 | |||||||||||||||||||||||
10.3+ | S-4/A | 10.3 | 8/5/2021 | |||||||||||||||||||||||
10.4+ | S-4/A | 10.4 | 8/5/2021 | |||||||||||||||||||||||
10.5+ | S-4/A | 10.5 | 8/5/2021 | |||||||||||||||||||||||
10.6+ | S-4/A | 10.6 | 8/5/2021 | |||||||||||||||||||||||
10.7+ | S-4/A | 10.7 | 8/5/2021 | |||||||||||||||||||||||
10.8+ | S-4/A | 10.8 | 8/5/2021 | |||||||||||||||||||||||
10.9+ | S-4/A | 10.9 | 8/5/2021 | |||||||||||||||||||||||
10.10+ | S-4/A | 10.1 | 8/5/2021 | |||||||||||||||||||||||
10.11+ | S-4/A | 10.11 | 8/5/2021 | |||||||||||||||||||||||
10.12+ | S-4/A | 10.12 | 8/5/2021 | |||||||||||||||||||||||
10.13+ | S-4/A | 10.13 | 8/5/2021 | |||||||||||||||||||||||
10.14+ | S-4/A | 10.14 | 8/5/2021 | |||||||||||||||||||||||
10.15+ | S-4/A | 10.15 | 8/5/2021 | |||||||||||||||||||||||
10.16+ | S-4/A | 10.16 | 8/5/2021 | |||||||||||||||||||||||
10.17+ | S-4/A | 10.17 | 8/5/2021 | |||||||||||||||||||||||
10.18+ | S-4/A | 10.18 | 8/5/2021 | |||||||||||||||||||||||
10.19+ | S-4/A | 10.19 | 8/5/2021 |
10.20+ | S-4/A | 10.2 | 8/5/2021 | |||||||||||||||||||||||
10.21 | 8-K | 10.1 | 3/29/2021 | |||||||||||||||||||||||
10.22 | 8-K | 10.2 | 3/29/2021 | |||||||||||||||||||||||
10.23 | 8-K | 10.3 | 3/29/2021 | |||||||||||||||||||||||
10.24 | 8-K | 10.4 | 3/29/2021 | |||||||||||||||||||||||
10.25 | 8-K | 10.5 | 3/29/2021 | |||||||||||||||||||||||
10.26 | 8-K | 10.6 | 3/29/2021 | |||||||||||||||||||||||
10.27 | 8-K | 10.2 | 2/26/2021 | |||||||||||||||||||||||
10.28 | 8-K | 10.3 | 2/26/2021 | |||||||||||||||||||||||
10.29 | 8-K | 10.4 | 2/26/2021 | |||||||||||||||||||||||
10.30 | 8-K | 10.5 | 2/26/2021 | |||||||||||||||||||||||
10.31 | 8-K | 10.6 | 2/26/2021 | |||||||||||||||||||||||
10.32 | 8-K | 10.7 | 2/26/2021 | |||||||||||||||||||||||
10.33†† | S-4/A | 10.33 | 8/5/2021 | |||||||||||||||||||||||
10.34†† | S-4/A | 10.34 | 8/5/2021 | |||||||||||||||||||||||
10.35†† | 10-K | 10.34 | 3/29/2022 | |||||||||||||||||||||||
10.36†† | 10-K | 10.35 | 3/29/2022 | |||||||||||||||||||||||
10.37††# | 10-K | 10.36 | 3/29/2022 | |||||||||||||||||||||||
10.38††#* | ||||||||||||||||||||||||||
10.39† | 8-K | 10.1 | 2/16/2022 | |||||||||||||||||||||||
10.40† | 8-K | 10.2 | 2/16/2022 | |||||||||||||||||||||||
10.41+ | 8-K | 10.1 | 10/17/2022 | |||||||||||||||||||||||
10.42+ | 8-K | 10.2 | 10/17/2022 | |||||||||||||||||||||||
21.1* | ||||||||||||||||||||||||||
23.1* | ||||||||||||||||||||||||||
31.1* | ||||||||||||||||||||||||||
31.2* | ||||||||||||||||||||||||||
32.1** | ||||||||||||||||||||||||||
32.2** | ||||||||||||||||||||||||||
101.IN* | Inline XBRL Instance Document | |||||||||||||||||||||||||
101.SCH* | Inline XBRL Schema Document | |||||||||||||||||||||||||
101.CAL* | Inline XBRL Calculation Linkbase Document | |||||||||||||||||||||||||
101.LAB* | Inline XBRL Label Linkbase Document | |||||||||||||||||||||||||
101.PRE* | Inline XBRL Presentation Linkbase Document | |||||||||||||||||||||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition LinkBase Document |
104* | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | |||||||||||||||||||||||||
* | Filed herewith. | |||||||||||||||||||||||||
** | Furnished herewith | |||||||||||||||||||||||||
† | Certain of the exhibits and schedules to this Exhibit have been omitted in accordance with Regulation S-K Item 601(a)(5). | |||||||||||||||||||||||||
†† | The Company has omitted portions of the exhibit as permitted under Regulation S-K Item 601(b)(10). The Registrant agrees to furnish on a supplemental basis an unredacted copy of this exhibit and its materiality and privacy or confidentiality analysis if requested by the SEC. | |||||||||||||||||||||||||
# | Portions of this exhibit have been omitted pursuant to a request for confidential treatment. Omitted material for which confidential treatment has been requested has been filed separately with the SEC. | |||||||||||||||||||||||||
+ | Management contract or compensatory plan or arrangement. |
SomaLogic, Inc. | |||||||||||||||||
Date: | March 28, 2023 | By: | /s/ Troy Cox | ||||||||||||||
Name: | Troy Cox | ||||||||||||||||
Title: | Executive Chairman |
Signature | Title | Date | ||||||||||||
/s/ Troy Cox | Executive Chairman | March 28, 2023 | ||||||||||||
Troy Cox | (Principal Executive Officer) | |||||||||||||
/s/ Shaun Blakeman | Chief Financial Officer | March 28, 2023 | ||||||||||||
Shaun Blakeman | (Principal Financial and Accounting Officer) | |||||||||||||
/s/ Robert Barchi | Director | March 28, 2023 | ||||||||||||
Robert Barchi | ||||||||||||||
/s/ Eli Casdin | Director | March 28, 2023 | ||||||||||||
Eli Casdin | ||||||||||||||
/s/ Charles M. Lillis | Director | March 28, 2023 | ||||||||||||
Charles M. Lillis | ||||||||||||||
/s/ Anne Margulies | Director | March 28, 2023 | ||||||||||||
Anne Margulies | ||||||||||||||
/s/ Ted Meisel | Director | March 28, 2023 | ||||||||||||
Ted Meisel | ||||||||||||||
/s/ Richard Post | Director | March 28, 2023 | ||||||||||||
Richard Post | ||||||||||||||
/s/ Roy Smythe | Director | March 28, 2023 | ||||||||||||
Roy Smythe | ||||||||||||||