Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 29, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Entity Registrant Name | Singular Genomics Systems, Inc. | ||
Entity Central Index Key | 0001850906 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Trading Symbol | OMIC | ||
Entity Shell Company | false | ||
Entity Public Float | $ 49 | ||
Entity Common Stock, Shares Outstanding | 73,928,557 | ||
ICFR Auditor Attestation Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity File Number | 001-40443 | ||
Entity Tax Identification Number | 81-2948451 | ||
Entity Address, Address Line One | 3010 Science Park Road | ||
Entity Address, City or Town | San Diego | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92121 | ||
City Area Code | 858 | ||
Local Phone Number | 333-7830 | ||
Title of 12(b) Security | Common Stock, $0.0001 par value per share | ||
Security Exchange Name | NASDAQ | ||
Entity Incorporation, State or Country Code | DE | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive Proxy Statement for the registrant’s 2024 Annual Meeting of Stockholders, which will be filed with the Securities and Exchange Commission not later than 120 days after the registrant’s fiscal year ended December 31, 2023, are hereby incorporated by reference into certain information called for by Part III of this Annual Report on Form 10-K. | ||
Auditor Firm ID | 42 | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | San Diego, California |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 16,233 | $ 74,266 |
Short-term investments | 157,708 | 170,310 |
Accounts receivable | 565 | 913 |
Inventory, net | 13,572 | 18,221 |
Prepaid expenses and other current assets | 4,150 | 4,722 |
Total current assets | 192,228 | 268,432 |
Right-of-use lease assets | 57,797 | 45,896 |
Property and equipment, net | 13,692 | 10,784 |
Restricted cash | 600 | 1,711 |
Other noncurrent assets | 1,150 | 1,152 |
Total assets | 265,467 | 327,975 |
Current liabilities: | ||
Accounts payable | 2,587 | 3,099 |
Accrued expenses | 6,079 | 4,583 |
Lease liabilities, current | 7,764 | 6,323 |
Other current liabilities | 1,857 | 113 |
Total current liabilities | 18,287 | 14,118 |
Lease liabilities, non current | 58,623 | 42,456 |
Long-term debt, net of issuance costs | 8,901 | 10,065 |
Other noncurrent liabilities | 650 | 1,015 |
Total liabilities | 86,461 | 67,654 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity (deficit): | ||
Common stock, $0.0001 par value; 400,000,000 shares authorized, 73,823,161 and 71,854,688 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively | 7 | 7 |
Additional paid-in capital | 516,439 | 503,926 |
Accumulated other comprehensive gain (loss) | 155 | (837) |
Accumulated deficit | (337,595) | (242,775) |
Total stockholders' equity | 179,006 | 260,321 |
Total liabilities and stockholders' equity | 265,467 | 327,975 |
Series A Convertible Preferred Stock [Member] | ||
Stockholders' equity (deficit): | ||
Series A Common Stock Equivalent Convertible preferred stock, $0.0001 par value; 7,000 shares authorized, 2,500 and no shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively | $ 0 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Common stock, par value per share | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 73,823,161 | 71,854,688 |
Common stock, shares outstanding | 73,823,161 | 71,854,688 |
Series A Convertible Preferred Stock [Member] | ||
Temporary equity, par value per share | $ 0.0001 | $ 0.0001 |
Temporary equity, shares authorized | 7,000 | 7,000 |
Temporary equity, shares issued | 2,500 | 2,500 |
Temporary equity, shares outstanding | 2,500 | 2,500 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Revenue | $ 2,911 | $ 765 |
Cost of revenue | 3,469 | 789 |
Gross margin | (558) | (24) |
Operating expenses: | ||
Research and development | 47,764 | 46,199 |
Selling, General and Administrative | 54,479 | 47,264 |
Total operating expenses | 102,243 | 93,463 |
Loss from operations | (102,801) | (93,487) |
Other income (expense): | ||
Interest expense | (1,101) | (763) |
Interest and other income | 9,082 | 3,371 |
Total other income | 7,981 | 2,608 |
Net loss | $ (94,820) | $ (90,879) |
Earning per share, Diluted | $ (1.3) | $ (1.28) |
Earnings per share, Basic | $ (1.3) | $ (1.28) |
Weighted Average Number of Shares Outstanding, Diluted | 72,796,250 | 71,148,076 |
Weighted Average Number of Shares Outstanding, Basic | 72,796,250 | 71,148,076 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Net Income (Loss) | $ (94,820) | $ (90,879) |
Other comprehensive loss: | ||
Unrealized gain (loss) on available-for-sale securities | 992 | (699) |
Comprehensive loss | $ (93,828) | $ (91,578) |
Consolidated Statements of Pref
Consolidated Statements of Preferred Stock and Stockholders' Equity/(Deficit) (Unaudited) - USD ($) | Total | Series A Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Preferred Stock [Member] | Accumulated Other Comprehensive Gain (Loss) [Member] | Accumulated Deficit [Member] |
Balance at Dec. 31, 2021 | $ 336,173,000 | $ 7,000 | $ 488,200,000 | $ (138,000) | $ (151,896,000) | ||
Balance (in shares) at Dec. 31, 2021 | 72,438,742 | 0 | |||||
Exchange of common stock for Series A Common Stock Equivalent Convertible Preferred Stock, shares | (2,500,000) | 2,500 | |||||
Vesting of common stock issued for early exercise of stock options | 705,000 | 705,000 | |||||
Vesting of common stock issued for early exercise of stock options (in shares) | 1,015,695 | ||||||
Issuance of common stock in connection with exercise of stock options | 172,000 | 172,000 | |||||
Issuance of common stock in connection with exercise of stock options (in shares) | 385,824 | ||||||
Stock-based compensation | 13,669,000 | 13,669,000 | |||||
Unrealized gain (loss) on available- for-sale marketable securities | (699,000) | $ 0 | (699,000) | ||||
Issuance of common stock in connection with Employee Stock Purchase Program (in shares) | 514,427 | ||||||
Issuance of common stock in connection with Employee Stock Purchase Program | 1,180,000 | 1,180,000 | |||||
Net Income (Loss) | (90,879,000) | (90,879,000) | |||||
Balance at Dec. 31, 2022 | 260,321,000 | $ 7,000 | 503,926,000 | 2,500 | (837,000) | (242,775,000) | |
Balance (in shares) at Dec. 31, 2022 | 71,854,688 | ||||||
Temporary equity, Balance (in shares) at Dec. 31, 2022 | 2,500 | ||||||
Vesting of common stock issued for early exercise of stock options | 394,000 | 394,000 | |||||
Vesting of common stock issued for early exercise of stock options (in shares) | 471,035 | ||||||
Issuance of common stock in connection with exercise of stock options | $ 13,000 | 13,000 | |||||
Issuance of common stock in connection with exercise of stock options (in shares) | 23,479 | 23,479 | |||||
Stock-based compensation | $ 11,404,000 | 11,404,000 | |||||
Unrealized gain (loss) on available- for-sale marketable securities | 992,000 | 992,000 | |||||
Issuance of common stock in connection with vesting of restricted stock units | 415,528 | ||||||
Issuance of common stock in connection with Employee Stock Purchase Program (in shares) | 1,058,431 | ||||||
Issuance of common stock in connection with Employee Stock Purchase Program | 702,000 | 702,000 | |||||
Net Income (Loss) | (94,820,000) | (94,820,000) | |||||
Balance at Dec. 31, 2023 | $ 179,006,000 | $ 7,000 | $ 516,439,000 | $ 2,500 | $ 155,000 | $ (337,595,000) | |
Balance (in shares) at Dec. 31, 2023 | 73,823,161 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating activities | ||
Net loss | $ (94,820) | $ (90,879) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Stock-based compensation | 11,404 | 13,669 |
Lease incentives received or receivable | 3,861 | 0 |
Amortization of right-of-use lease assets | 3,713 | 3,601 |
Depreciation | 3,510 | 2,431 |
Long-lived asset impairment | 1,900 | 0 |
Accretion of debt issuance costs | 148 | 165 |
Amortization of premium (accretion of discount) on short-term investments | (1,118) | 676 |
Loss on disposal of property and equipment | 0 | 60 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 348 | (913) |
Inventory, net | (3,537) | (13,487) |
Prepaid expenses and other current assets | 507 | 604 |
Other noncurrent assets | 2 | (892) |
Accounts payable | 267 | (1,168) |
Accrued expenses | 1,554 | 79 |
Other current liabilities | 432 | 81 |
Lease liabilities | (1,866) | (1,208) |
Other noncurrent liabilities | 48 | 87 |
Net cash used in operating activities | (73,647) | (87,094) |
Investing activities | ||
Purchases of short-term investments | (183,595) | (174,713) |
Maturities of shot-term investments | 178,035 | 119,647 |
Sales of short-term investments | 20,337 | 21,522 |
Purchases of property and equipment | (970) | (6,022) |
Net cash provided (used) by investing activities | 13,807 | (39,566) |
Financing activities | ||
Proceeds from issuance of common stock under employee stock purchase plan | 702 | 1,180 |
Proceeds from issuance of common stock under equity incentive plans | 13 | 171 |
Repurchases of common stock under equity incentive plans | (19) | (450) |
Net cash provided by financing activities | 696 | 901 |
Net decrease in cash and cash equivalents and restricted cash | (59,144) | (125,759) |
Cash and cash equivalents and restricted cash, beginning of year | 75,977 | 201,736 |
Cash and cash equivalents and restricted cash, end of period | 16,833 | 75,977 |
Supplemental disclosure for cash activities | ||
Interest paid | 941 | 561 |
Supplemental disclosure for non-cash activities | ||
Lease liability recognized upon lease modifications during the period | 19,475 | 0 |
Inventory transferred to property and equipment | 7,643 | 104 |
Purchases of inventory included in accounts payable | 1,116 | 1,601 |
Vesting of common stock issued for early exercise of stock options | 394 | 705 |
Purchase of property plant and equipment included in accounts payable | 24 | 318 |
Purchases of inventory included in accrued expenses | 168 | 226 |
Initial lease liability recognized upon lease commencements during the period | 0 | 43,231 |
Initial lease liability recognized upon adoption of ASC 842 | 0 | 7,074 |
Reduction of lease liability for lease termination | 0 | 334 |
Noncurrent deposit transferred to property and equipment | $ 0 | $ 759 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (94,820) | $ (90,879) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Business
Business | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business And Basis of Presentation | 1. Business Description of Business Singular Genomics Systems, Inc. (the “Company”) is a life science technology company that develops next-generation sequencing and multiomics technologies. The commercially available G4 Sequencing Platform is a powerful, highly versatile benchtop genomic sequencer designed to produce fast and accurate results. In addition, the Company is currently developing the G4X Spatial Sequencer, which will leverage the Company’s proprietary sequencing technology, applying it as an in situ readout for transcriptomics, proteomics and fluorescent H&E in tissue, with spatial context and on the same platform as the G4. The Company’s mission is to empower researchers and clinicians to advance science and medicine. The Company was incorporated in the state of Delaware in June 2016 and has its principal operations in San Diego, California. Liquidity and Capital Resources The Company has incurred net losses since inception and, as of December 31, 2023 and 2022, had an accumulated deficit of $ 337.6 million and $ 242.8 million , respectively. The Company has a limited operating history and the revenue and income potential of the Company’s business are unproven. From incorporation in June 2016 through December 31, 2023, substantially all of the Company’s operations have been funded by the sales of equity securities and issuances of debt. As of December 31, 2023, the Company had cash, cash equivalents and short-term investments of $ 173.9 million . The Company believes that its cash, cash equivalents and short-term investments as of December 31, 2023 are sufficient to fund its operations for at least 12 months from the issuance date of the accompanying financial statements . |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Use of Estimates The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The preparation of the Company’s financial statements requires management to make estimates and assumptions that impact the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the Company’s financial statements and accompanying notes. Although these estimates are based on the Company’s knowledge of current events and actions it may undertake in the future, actual results may significantly differ from these estimates and assumptions. For the year ended December 31, 2023 and 2022 , significant estimates and assumptions include the value of lease liabilities and right-of-use lease assets. Cash, Cash Equivalents and Restricted Cash Cash and Cash Equivalents Cash and cash equivalents include cash readily available in checking, savings, money market funds and sweep accounts. The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. Restricted Cash Restricted cash is held in a separate restricted bank account as the collateral for the security deposits on its executed lease agreements. The Company has classified restricted cash as noncurrent on its balance sheets. The following table provides a summary of cash, cash equivalents and restricted cash reported within the balance sheets (in thousands): December 31, 2023 2022 Cash and cash equivalents $ 16,233 $ 74,266 Restricted cash 600 1,711 Total $ 16,833 $ 75,977 Concentration of Credit Risk Financial instruments, which potentially subject the Company to a concentration of credit risk, consist primarily of cash, cash equivalents and short-term investments. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company has not experienced any losses in such accounts and management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. Short-term Investments As of December 31, 2023 and 2022, short-term investments primarily consisted of U.S. Treasury securities, asset-backed securities and corporate debt securities. The Company classifies its investments in securities as available-for-sale because, for accounting purposes, they are not considered to be either held-to-maturity securities or trading securities. They are not considered to be held-to-maturity securities because the Company does not have the positive intent to hold those securities to maturity. They are not considered trading securities because they are not acquired with the intent of selling them within hours or days. The Company’s investments in securities are classified as current as they are available to use to fund current operations, and the Company has the ability and intent to do so. Short-term investments are carried at fair value with the unrealized gains and losses included in other comprehensive income (loss) as a component of stockholders’ equity until realized. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity and recorded as interest income. Realized gains and losses are determined using the specific identification method and are included in other income (expense). The Company evaluates its investments in securities that are in an unrealized loss position quarterly to determine if those securities are other-than-temporarily impaired. If the Company intends to sell or if it is more likely than not that the Company will be required to sell those securities prior to the recovery of their book value, then those securities would be considered other-than-temporarily-impaired, and the Company would record this impairment as a loss through other income (expense). During the years ended December 31, 2023 and 2022, the Company concluded that none of its investments in securities were other-than-temporarily-impaired and thus recorded no impairment losses for its investments in securities. The following tables summarize the short-term investments held (in thousands): December 31, 2023 Amortized Gross Estimated U.S. treasury securities $ 149,129 $ 158 $ 149,287 Corporate debt securities 8,255 ( 3 ) 8,252 Asset-backed securities $ 169 $ - $ 169 Total $ 157,553 $ 155 $ 157,708 December 31, 2022 Amortized Gross Estimated U.S. treasury securities $ 62,776 $ ( 244 ) $ 62,532 Corporate debt securities 102,020 ( 553 ) 101,467 Asset-backed securities $ 6,351 $ ( 40 ) $ 6,311 Total $ 171,147 $ ( 837 ) $ 170,310 The following table summarizes contractual maturities of available-for-sale securities held (in thousands): December 31, 2023 2022 Due within one year $ 157,540 $ 155,920 Due after one but within five years 168 14,390 Total $ 157,708 $ 170,310 Property and Equipment, Net Property and equipment, net, which consists of lab equipment, computers and software, furniture and fixtures, leasehold improvements and construction in process, are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets (generally three to five years). Leasehold improvements are amortized over the remaining life of the lease or the useful life of the asset, whichever is shorter. Construction in process is not depreciated until placed into service. Repairs and maintenance costs are charged to expense as incurred. Inventory Inventory includes raw materials, which are goods to be consumed directly or indirectly in production, work in process, which are goods in the course of production, and finished goods, which are goods awaiting sale. Inventory is recorded at the lower of cost or net realizable value. Costs are based on standard costs that are adjusted regularly to reflect current conditions so that at the balance-sheet date standard costs reasonably approximate costs under a first-in, first-out basis. Standard costs include acquisition and production costs. Raw materials include inventories that may be used in research and development activities, and such items are expensed as consumed or capitalized as property and equipment and depreciated. We record write-downs of inventory for potentially excess, obsolete, or impaired goods in order to state inventory at net realizable value. Impairment of Long-lived Assets Long-lived assets consist primarily of property and equipment and right-of-use lease assets. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. During 2023, the Company identified an indicator of impairment of its long-lived assets due to a sustained decline in the trading price of the Company’s common stock over the preceding year, resulting in the Company’s market capitalization being below its net asset value. Although the Company is confident in the utility of its long-lived assets, and there have been no changes in their intended use, the implied cash flows based on the market capitalization of the Company indicated its long-lived assets may not be recoverable. In determining the fair value of its long-lived assets, the Company used a combination of discounted cash flows and observable market data. As a result of its fair value analysis, the Company recorded a $ 1.9 million impairment charge on its property and equipment as selling, general and administrative expense in the statement of operations during the year ended December 31, 2023 . No impairment was recorded during the year ended December 31, 2022 . Fair Value Measurements Certain assets and liabilities are carried at fair value under GAAP and consist primarily of cash, cash equivalents, short-term investments, restricted cash, accounts payable, accrued liabilities. The carrying amounts of cash, cash equivalents, accounts payable, and accrued liabilities approximate their fair values due to the short-term nature of these instruments. None of the Company’s non-financial assets or liabilities are recorded at fair value on a recurring basis. Leases The Company adopted Accounting Standards Codification (“ASC”) Topic 842, Leases (“ASC 842”), effective January 1, 2022. ASC 842 requires the Company to recognize on the balance sheet lease liabilities and corresponding right-of-use (“ROU”) lease assets for its operating leases where the Company is the lessee. The initial impact of the adoption is discussed below in the section titled “Recent Accounting Pronouncements—Adopted.” The Company determines if an arrangement is or contains a lease at contract inception. Lease liabilities represent the Company’s obligation to make payments under its operating leases. ROU lease assets represent the Company’s right to use assets under its operating leases. The Company determines the value of lease liabilities and ROU lease assets on a lease-by-lease basis. A lease liability is recognized at the commencement date of an operating lease based on the present value of the future lease payments over the expected lease term. A corresponding ROU lease asset is recognized at the commencement date of an operating lease based on the value of the lease liability, adjusted for any lease incentives received, any initial direct costs incurred and any lease payments made at or before the lease commencement date. The Company made a policy election to not recognize lease liabilities and ROU lease assets for operating leases with an expected lease term of twelve months or less. The Company calculates the present value of lease payments using the discount rate implicit in the lease, unless that rate cannot be readily determined. In that case, the Company uses its incremental borrowing rate based on information available at the date of lease commencement. The incremental borrowing rate is the estimated rate of interest that the Company would pay to borrow, on a collateralized basis, an amount equal to the lease payments over the expected lease term. After lease commencement, the Company measures its operating leases as follows: (i) the lease liability based on the present value of the remaining lease payments using the incremental borrowing rate determined at lease commencement; and (ii) the ROU lease asset based on the remeasured lease liability, adjusted for any unamortized lease incentives received, any unamortized initial direct costs and the cumulative difference between lease expense and amounts paid under the lease. Lease expense is recognized on a straight-line basis over the expected lease term. Any lease incentives received and any initial direct costs are amortized on a straight-line basis over the expected lease term. Variable lease payments such as those related to property taxes, insurance and common area maintenance are recognized as expense when incurred. Revenue Recognition The Company generates revenue from sales of its products, which consist of the G4 instrument, related consumable flow cell kits and services. Revenue from instrument sales is recognized generally upon customer acceptance. Revenue from consumables sales is recognized generally upon shipment to the customer. Revenue from services, which are primarily comprised of assurance-type services, is recognized over the applicable service period. Revenue is recorded net of discounts and sales taxes. The Company invoices its customers for instruments generally upon acceptance, for consumables generally on delivery, and for services generally in advance of the service period. Invoice terms are generally net 30 days. Cash received from customers in advance of revenue recognition is recorded as a contract liability. The Company’s contracts with its customers generally do not include rights of return or a significant financing component. The Company regularly enters into contracts that include a combination of products and services, which are distinct within the context of the contract and are accounted for as separate performance obligations. The transaction price is allocated to each performance obligation in proportion to its standalone selling price. Until the Company has sufficient volume of historical sales data for each performance obligation, the Company determines the standalone selling price using observable prices when available and with consideration of current market conditions which is primarily based on prices set by management, adjusted for applicable discounts. The Company then recognizes revenue for each performance obligation as that performance obligations is satisfied as discussed above. The Company has entered into instrument arrangements with certain customers, under which the Company provides the G4 instrument at no cost to the customer, other than shipping, and the customer pays for consumables at list price, or at list price plus a mark-up, as consumables are ordered, shipped and invoiced. Revenue is recognized as consumables are shipped to the customer and disclosed within consumables revenue below. The G4 instrument provided to the customer is recorded on the balance sheet as property and equipment and disclosed as instruments at customer sites under Note 6 to these financial statements. Revenue associated with any lease elements of these arrangements was not material during the years ended December 31, 2023 and 2022. For the year ended December 31, 2023, the Company recognized $ 2.5 million and $ 0.4 million of revenue related to sales of instruments and consumables products, respectively. Contract liabilities, which consists of deferred revenue, as of December 31, 2023 and 2022 were $ 0.3 million and $ 0.1 million, respectively, were recorded as other noncurrent liabilities. Deferred revenue represents the value of performance obligations that have been invoiced but for which revenue has not yet been earned. For the year ended December 31, 2023 and 2022, all of the Company’s revenue was generated within the United Sates. During the period, the Company generated approximately 35 % of revenue from its top three customers. Cost of Revenue Cost of revenue consists of the following: direct costs of the materials and labor to build products; overhead such as facilities and indirect labor that support manufacturing; shipping and handling costs; labor and direct costs to install the G4; estimated costs to satisfy customary assurance-type warranty provisions; and depreciation and service costs for instruments provided to customers under instrument arrangements described above. Research and Development Expense The Company’s research and development expense consists primarily of the following: salaries, payroll taxes, employee benefits and stock-based compensation for personnel engaged in research and development activities; fees paid to consultants; license fees paid to third parties for use of their intellectual property; laboratory supplies and development materials; allocated information technology and facilities costs; and depreciation. Research and development costs are charged to expense as incurred. Patent Costs Costs related to filing and pursuing patent applications are recorded as selling, general and administrative expenses within the Company’s statements of operations and expensed as incurred since recoverability of such expenditures is uncertain. Issuance Costs Related to Debt The Company allocates issuance costs between the individual freestanding instruments identified on the same basis as proceeds were allocated. Issuance costs associated with the issuance of debt is recorded as a direct reduction of the carrying amount of the debt liability, limited to the notional value of the debt. The Company accounts for the Silicon Valley Bank loan (see Note 8) as a liability measured at amortized cost and amortizes the related debt discount to interest expense using the effective interest method over the expected term of the debt. Issuance costs associated with the Silicon Valley Bank loan are included in long-term debt on the balance sheet. Stock-based Compensation The Company accounts for stock-based compensation by measuring and recognizing compensation expense for all stock-based awards made to employees and non-employees based on estimated grant-date fair values. The Company uses the straight-line method to recognize compensation cost over the required service period of the award, which is generally the vesting period of the award. The Company recognizes actual forfeitures by reducing the stock-based compensation in the same period that the forfeitures occur. The Company estimates the fair value of stock-based option awards to employees and non-employees using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of subjective assumptions, including the fair value of common stock, expected term, expected volatility, risk-free interest rate and expected dividend yield, which are described in greater detail below. Inputs to the Black-Scholes option pricing model are subjective and generally require the use of judgment. Changes in the assumptions can materially affect how much stock-based compensation is recognized. These inputs are as follows: • Fair value of common stock — For awards granted prior to the Initial Public Offering (the “IPO”), when there was no public market for the Company’s common stock, the grant date fair value of the Company’s common stock was determined by the Company’s board of directors based in part on valuations of the Company’s common stock prepared by a third-party valuation specialist. For awards granted after the IPO, the fair value of common stock is the closing price per share of the Company’s common stock on the grant date as reported on the Nasdaq. • Expected term —The expected term represents the average period that options granted are expected to be outstanding and is determined using the simplified method (based on the mid-point between the weighted-average vesting period and the end of the contractual term). The Company uses the simplified method because the Company has concluded that its historical option exercise experience does not provide a reasonable basis to estimate expected term. • Expected volatility —The Company had no publicly available stock price information prior to its IPO and limited publicly available stock price information after its IPO; therefore, the Company used the historical volatility of the stock price of similar publicly traded companies. The historical volatility is calculated based on a period of time commensurate with the expected term. • Risk-free interest rate —The risk-free interest rate is based on the U.S. Treasury zero coupon issues in effect at the time of grant for periods corresponding with the expected term. • Expected dividend yield —The Company has never paid dividends and does not intend to pay dividends in the foreseeable future. Therefore, the Company used an expected dividend yield of zero. Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statements and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized as income or expense in the period that includes the enactment date. The Company recognizes net deferred tax assets to the extent that the Company believes these assets are more likely than not to be realized. In making such a determination, management considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations. If management determines that the Company would be able to realize its deferred tax assets in the future in excess of their net recorded amount, management would make an adjustment to the deferred tax asset valuation allowance, which would reduce any provision for income taxes. The Company records uncertain tax positions on the basis of a two-step process whereby: (i) management determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position; and (ii) for those tax positions that meet the more-likely-than-not recognition threshold, management recognizes the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority. The Company will recognize interest and penalties related to unrecognized tax benefits within income tax expense. Other Comprehensive Loss Other comprehensive loss is defined as a change in equity during a period from transactions and other events and circumstances from non-owner sources. The only component of other comprehensive loss is unrealized loss on available-for-sale securities, which have been reflected in the statements of comprehensive loss and as a separate component in the statements of preferred stock and stockholders’ equity. Net Loss per Share In periods of net loss, basic net loss per share is computed by dividing net loss available to common stockholders by the weighted-average number of shares of common stock outstanding during the period, without consideration for potentially dilutive securities. Outstanding stock options, convertible preferred stock and shares of common stock subject to repurchase by the Company are excluded from the calculation of diluted net loss per common share for the periods presented as their effect would be anti-dilutive. Thus, for all periods presented, there is no difference in the number of shares used to calculate basic and diluted net loss per share. Segment Information Operating segments are components of a public entity that: (i) engage in business activities from which they may recognize revenues and incur expenses; (ii) have operating results that are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance; and (iii) have discrete financial information available. The Company views its operations and manages its business as one operating segment, and thus has one reportable segment. The Company’s long-lived assets are located in the United States. Recent Accounting Pronouncements—Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (“ASU 2016-02”), codified as ASC 842. ASC 842 requires the Company to recognize on the balance sheet lease liabilities and corresponding ROU lease assets for its operating leases where the Company is the lessee. The Company adopted this standard effective January 1, 2022 using the modified retrospective method by applying the new standard to all leases existing as of January 1, 2022 and not restating any prior comparative periods. The Company elected the practical expedients to carry forward its historical lease classification, not reassess whether any expired or existing contracts are or contain leases and not reassess initial direct costs for existing leases. On January 1, 2022, the Company recorded operating lease liabilities of $ 7.1 million, ROU lease assets of $ 6.4 million, and derecognized deferred rent of $ 0.7 million. The additional disclosures required by the standard have been included in the section above titled “Leases” and in Note 9. In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments , which modifies the measurement and recognition of credit losses for most financial assets and certain other instruments. The new standard requires the use of forward-looking expected credit loss models based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount, which may result in earlier recognition of credit losses under the new standard. The new standard also requires that credit losses related to available-for-sale debt securities be recorded as an allowance through net loss rather than reducing the carrying amount under the prior, other-than-temporary-impairment model. The new standard was adopted by the Company using the modified retrospective approach starting January 1, 2023. The Company determined there was no cumulative-effect transition adjustment to the opening balance of accumulated deficit for recognition of credit losses upon adoption of this standard based on its assessment of the collectability of its outstanding accounts receivable and the composition and credit quality of its short-term investments. Recent Accounting Pronouncements—Not Yet Adopted In July 2023, the FASB issued ASU No 2023-03, “Presentation of Financial Statements (Topic 205), Income Statement—Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation—Stock Compensation (Topic 718)” pursuant to SEC Staff Accounting Bulletin No. 120, which adds interpretive guidance for public companies to consider when entering into share-based payment transactions while in possession of material non-public information. The effective date of this update is for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The Company does not expect the adoption to have a material impact on its financial statements. In November 2023 the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which expands disclosure requirements to require entities to disclose significant segment expenses that are regularly provided to or easily computed from information regularly provided to the chief operating decision maker. This update also requires all annual disclosures currently required by Topic 280 to be disclosed in interim periods. The new disclosure requirements are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating these new expanded disclosure requirements. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements For accounting purposes, 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. None of the Company’s assets or liabilities are recorded at fair value on a recurring basis other than cash and cash equivalents, and short-term investments. No transfers between levels occurred during the periods presented. The fair value of short-term investments is based on market prices quoted on the last day of the fiscal period or other observable market inputs. The following tables summarize the Company’s assets measured at fair value on a recurring basis (in thousands): December 31, 2023 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash $ 16,184 $ - $ - $ 16,184 Money market funds 49 - - 49 Total cash and cash equivalents 16,233 - - 16,233 Short-term investments: U.S. Treasury securities 149,286 - - 149,286 Corporate debt securities - 8,253 - 8,253 Asset-backed securities - 169 - 169 Total short-term investments 149,286 8,422 - 157,708 Total cash and cash equivalents and short-term investments $ 165,519 $ 8,422 $ - $ 173,941 December 31, 2022 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash $ 48,690 $ - $ - $ 48,690 Money market funds 25,576 - - 25,576 Total cash and cash equivalents 74,266 - - 74,266 Short-term investments: U.S. Treasury securities 62,532 - - 62,532 Corporate debt securities - 101,467 - 101,467 Asset-backed securities - 6,311 - 6,311 Total short-term investments 62,532 107,778 - 170,310 Total cash and cash equivalents and short-term investments $ 136,798 $ 107,778 $ - $ 244,576 |
Inventory, Net
Inventory, Net | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory, Net | 4. Inventory, Net Inventory, net consisted of the following (in thousands): December 31, 2023 2022 Raw materials $ 11,627 $ 14,508 Work in process 1,276 3,276 Finished goods 669 437 Total inventory $ 13,572 $ 18,221 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets | 5. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): December 31, 2023 2022 Prepaid expenses $ 1,672 $ 3,003 Interest receivable 1,019 1,099 Current deposits and other current assets 1,459 620 Total prepaid expenses and other current assets $ 4,150 $ 4,722 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | 6. Property and Equipment, Net Property and equipment, net, consisted of the following (in thousands): December 31, Useful Life 2023 2022 Equipment 5 years $ 12,837 $ 8,656 Computers and software 3 years 3,445 2,705 Leasehold improvements 14 years or less 2,244 2,127 Furniture and fixtures 5 years or less 660 1,854 Instruments at customer sites 5 years 2,527 - Total property and equipment, gross 21,713 15,342 Less: accumulated depreciation ( 8,021 ) ( 4,558 ) Total property and equipment, net $ 13,692 $ 10,784 Gross asset balances in the table above reflect $ 1.9 million of long-lived asset impairment described in Note 2 above. Transfers of assets from inventory to property and equipment are transferred at standard cost and recognized at carrying value. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses | 7. Accrued Expenses Accrued expenses consisted of the following (in thousands): December 31, 2023 2022 Accrued compensation and other employee benefits $ 5,229 $ 3,580 Accrued research and development expenses 264 360 Accrued professional services 178 204 Accrued other expenses 408 439 Total accrued expenses $ 6,079 $ 4,583 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 8. Long-term Debt Silicon Valley Bank Loan In November 2019, the Company entered into a loan and security agreement with Silicon Valley Bank (“SVB”) pursuant to which SVB agreed to lend to the Company up to $ 15.0 million in a series of term loans (the “2019 SVB Loan”). Contemporaneously, the Company borrowed $ 2.5 million in the first of three draw-downs available under the 2019 SVB Loan. In March 2020, the Company borrowed an additional $ 7.5 million as a second draw. The 2019 SVB Loan was to mature on September 1, 2023 and bore interest at an annual rate equal to the greater of (i) 0.65 % above the prime rate or (ii) 5.90 %. Payment on the 2019 SVB Loan was for interest only through September 30, 2021. In addition, a final payment equal to the original principal amount of each advance multiplied by 5.50 % was to be due on the maturity date. In connection with the 2019 SVB Loan, SVB entered into a warrant to purchase a number of shares of convertible preferred stock (the “SVB Warrant”). The SVB Warrant was automatically adjusted to become a warrant to purchase an equivalent number of shares of common stock in connection with the IPO. In June 2021, after the IPO, SVB net exercised the SVB Warrant into 117,088 shares of common stock of the Company. On September 30, 2021, the Company refinanced its 2019 SVB Loan. In connection with the refinancing, the Company entered into an Amended and Restated Loan and Security Agreement (the “2021 SVB Loan,” together with the 2022 SVB Loan Amendment (defined below), the “SVB Loan”) with SVB. The 2021 SVB Loan provided for term loans in an aggregate principal amount of up to $ 35.5 million to be delivered in three tranches. The tranches consisted of: (i) a term loan advance to the Company in an aggregate principal amount of $ 10.5 million on the loan closing date (the “First Tranche”); (ii) an additional term loan advance available to the Company through September 30, 2022 in an aggregate principal amount of $ 15.0 million (the “Second Tranche”) ; and (iii) subject to SVB’s approval, a right of the Company to request that SVB make an additional term loan advance in an aggregate principal amount of $ 10.0 million. The proceeds from the First Tranche were used to repay in full the existing indebtedness under the 2019 SVB Loan. The SVB Loan matures on September 1, 2026 and bears interest at an annual rate equal to the greater of (i) 0.75 % plus the prime rate as reported in The Wall Street Journal and (ii) 4.00 %. As of December 31, 2023, the SVB Loan bears interest at an annual rate of 9.25 % . The SVB Loan has an initial interest-only period of 36 months. In addition, a final payment (the “Final Payment Fee”) equal to the original principal amount of each advance multiplied by 4.00 % will be due on the maturity date. The Final Payment Fee is recorded in other noncurrent liabilities on the balance sheet. The 2021 SVB Loan was accounted for as a debt modification, rather than an extinguishment, based on a comparison of the present value of the cash flows under the terms of the debt immediately before and after the amendment, which resulted in a change of such cash flows of less than 10%. Unamortized debt issuance costs as of the date of modification and incremental issuance costs incurred in connection with the 2021 SVB Loan will be amortized to interest expense using the effective interest method over the repayment term. On September 30, 2022, the Company entered into an amendment to the 2021 SVB Loan (the “2022 SVB Loan Amendment”). The 2022 SVB Loan Amendment extended the period to draw down the additional tranches totaling $ 25.0 million from September 30, 2022 to March 31, 2024 , provided that in order for the Company to access the Second Tranche availability the Company must achieve a six-month trailing revenue hurdle. The 2022 SVB Loan Amendment was accounted for as a debt modification, rather than an extinguishment, based on a comparison between the present value of the cash flows under the terms of the debt immediately before and after the amendment, which resulted in a change of such cash flows of less than 10%. Unamortized debt issuance costs as of the date of modification and incremental issuance costs incurred in connection with the 2022 SVB Loan Amendment will be amortized to interest expense using the effective interest method over the repayment term. On March 10, 2023, SVB was closed by the California Department of Financial Protection and Innovation, which appointed the FDIC as receiver, and all of SVB’s deposits and substantially all of SVB’s assets were transferred into a new entity, Silicon Valley Bridge Bank, N.A. (“SVBB”). On March 12, 2023, the Department of the Treasury, the Federal Reserve and the FDIC jointly released a statement indicating that SVBB had assumed the obligations and commitments of former SVB. On March 27, 2023, First-Citizens Bank & Trust Company (“First Citizens Bank”) assumed all of SVBB’s obligations and commitments, and SVBB began operating as Silicon Valley Bank, a division of First Citizens Bank. As of December 31, 2023 and 2022, the unamortized debt issuance costs related to the SVB Loan were $ 0.3 million and $ 0.4 million , respectively. Debt issuance costs include the initial fair value of the SVB Warrant. The debt issuance costs are amortized to interest expense over the term of the loan using the effective interest method. As of December 31, 2023 the current portion of the SVB Loan of $ 1.3 million, which consists of principal payments due in the next 12 months, is included in other current liabilities on the balance sheet, and the remaining noncurrent amount is recorded in long-term debt, net of issuance costs. The SVB Loan and unamortized discount balances as of December 31, 2023 and 2022 are shown below (in thousands): December 31, 2023 2022 Total debt $ 10,500 $ 10,500 Less: issuance costs ( 287 ) ( 435 ) Total debt, net of issuance costs $ 10,213 $ 10,065 Less: current portion of long-term debt 1,312 - Total long-term debt $ 8,901 $ 10,065 Future minimum payments of outstanding principal and interest under the 2021 SVB Loan are as follows (in thousands): As of December 31, 2023 2024 $ 2,206 2025 5,886 2026 4,510 Total future minimum payments 12,602 Less: interest, Final Payment fee ( 2,102 ) Total debt 10,500 Less: issuance costs ( 287 ) Total debt, net of issuance costs $ 10,213 The Company is subject to customary affirmative and restrictive covenants under the SVB Loan. The Company’s obligations under the SVB Loan are secured by a first priority security interest in substantially all of the Company’s current and future assets, other than intellectual property. The Company has agreed not to encumber its intellectual property assets, except as permitted by the SVB Loan. The SVB Loan provides for events of default customary for term loan facilities of this type, including but not limited to: non-payment; breaches or defaults in the performance of covenants or representations and warranties; bankruptcy and other insolvency events of the Company; and the occurrence of a material adverse change as defined in the SVB Loan. After the occurrence of an event of default, SVB may, among other remedies, accelerate payment of all obligations. As of December 31, 2023 and 2022 , the Company was in compliance with all covenants under the SVB Loan and there had been no events of default. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Columbia License Agreement In 2016, the Company entered into an Exclusive License Agreement (the “License Agreement”) with The Trustees of Columbia University (“Columbia”). Under the License Agreement, the Company acquired the exclusive right to use certain patents, materials and information. The License Agreement includes a number of diligence obligations that requires the Company to use commercially reasonable efforts to research, discover, develop and market Patent Products and/or Other Products (as defined in the License Agreement) by certain dates. Under the License Agreement, the Company pays an annual license fee that increases each year, until it reaches a low six-digit fee for the fifth year, and for each subsequent year, for so long as the License Agreement remains in force. The license fee was immaterial for all periods presented. For any products within the scope of the License Agreement that the Company commercializes, the Company is required to pay royalties ranging from low to mid-single digits on net sales of Patent Products and low single-digit royalty rates on net sales of Other Products. The Company can credit the yearly annual license fee against any yearly royalty fees payable to Columbia. Additionally, if the Company receives any income in connection with any sublicenses, the Company must pay Columbia a high single-digit percentage of that income. Finally, the License Agreement provides for payments to Columbia based on the Company’ s achievement of certain development and commercialization milestones, which could total up to $ 3.9 million over the life of the License Agreement. As of December 31, 2023 and 2022 the Company accrued $ 0.4 million related to the milestones. During each of the years ended December 31, 2023 and 2022 , the Company paid approximately $ 0.1 million to Columbia pursuant to the terms of the License Agreement. Operating Leases Overview of Operating Leases In November 2019, the Company entered into a lease agreement for office and laboratory space in San Diego, California (the “3033 Lease”). The Company gained access to the leased space and began recognizing rent expense under the 3033 Lease in May 2020. The Company has since amended the 3033 Lease, most recently in September 2023, which extended the term of the lease and provided a tenant improvement allowance of approximately $ 1.0 million. The term of the 3033 Lease will end in October 2036. The Company provided a standby letter of credit in the amount of $ 0.2 million as a security deposit during the term of the lease. As of December 31, 2023 , $ 0.2 million was pledged as collateral for the letter of credit and recorded as restricted cash. In June 2020, the Company entered into a lease agreement for office and laboratory space in San Diego, California (the “3010 Lease”). The Company gained access to the leased space and began recognizing rent expense under the 3010 Lease in April 2022. The Company has since amended the 3010 Lease, most recently in September 2023, which extended the term of the lease. The term of the 3010 Lease will end in October 2036. The Company provided a standby letter of credit in the amount of $ 0.4 million as a security deposit during the term of the lease. As of December 31, 2023 , $ 0.4 million was pledged as collateral for the letter of credit and recorded as restricted cash. In April 2021, the Company entered into a lease agreement for office and manufacturing space in San Diego, California (the “MR Lease”). The Company gained access to the leased space and began recognizing rent expense under the MR Lease in June 2021. The term of the MR Lease will end in July 2026. In January 2022, the Company entered into a lease agreement (the “OAS Lease”) with an affiliate of Alexandria Real Estate Equities, Inc. (“ARE”) to lease two buildings to be constructed in connection with One Alexandria Square in La Jolla, California. In July 2023, the Company entered into an agreement to terminate the OAS Lease. Pursuant to this agreement, the OAS Lease terminated, effective September 13, 2023. In connection with the lease termination, ARE agreed to pay the Company lease termination payments of (a) approximately $ 1.8 million, which the Company received in September 2023, and (b) an additional amount of approximately $ 1.0 million, which the Company received in January 2024. In addition, ARE refunded the Company approximately $ 1.1 million in prepaid base rent under the terms of the OAS Lease in September 2023 and returned to the Company a letter of credit in the amount of approximately $ 1.1 million, previously issued to ARE pursuant to the terms of the OAS Lease, in November 2023. Accounting for Operating Leases On January 1, 2022, the Company adopted ASC 842 (see Note 2). As of January 1, 2022, the remaining weighted-average lease term was 2.9 years and the weighted-average incremental borrowing rate used to determine the operating lease liabilities was 3.6 %. Cash payments included in the measurement of lease liabilities totaled $ 7.5 million. As of December 31, 2023, the remaining weighted-average lease term was 13 years and the weighted-average incremental borrowing rate used to determine the operating lease liabilities was 9.7 %. Cash payments included in the measurement of lease liabilities totaled $ 118.9 million. As of December 31, 2022, the remaining weighted-average lease term was 12.7 years and the weighted-average incremental borrowing rate used to determine the operating lease liabilities was 9.1 % . Cash payments included in the measurement of lease liabilities totaled $ 86.7 million . During the year ended December 31, 2023, the Company incurred $ 11.8 million of lease costs, $ 3.5 million is related to variable lease payments, which are primarily comprised of common area maintenance, and $ 8.3 million is related to straight-line operating lease expense. During the year ended December 31, 2022, the Company incurred $ 9.3 million of lease costs, of which $ 0.1 million is related to the Company’s short-term leases, $ 2.7 million is related to variable lease payments, which are primarily comprised of common area maintenance, and $ 6.5 million is related to straight-line operating lease expense. During the year ended December 31, 2023, in connection with the amendments of the 3010 Lease and 3033 Lease described above, the Company recorded additional lease liabilities of $ 19.5 million. Future minimum payments under the Company’s non-cancelable operating leases as of December 31, 2023 are as follows (in thousands): 2024 $ 8,094 2025 5,716 2026 8,607 2027 8,580 2028 8,837 Thereafter 79,058 Future non-cancelable minimum lease payments 118,892 Less: present value discount ( 52,505 ) Total lease liabilities 66,387 Less: current portion 7,764 Lease liabilities, noncurrent $ 58,623 Indemnification As permitted under Delaware law and in accordance with the Company’s bylaws, the Company indemnifies its officers and directors for certain events or occurrences while the officers or directors are or were serving in such capacity. The Company is also party to indemnification agreements with its officers and directors. The Company considers the fair value of the indemnification rights and agreements as minimal. Accordingly, the Company has not recorded any liabilities for these indemnification rights and agreements as of December 31, 2023. Other Contingencies We are not currently a party to any material legal proceedings. From time to time, we may become involved in legal proceedings arising in the ordinary course of our business. Regardless of outcome, litigation can have an adverse impact on us due to defense and settlement costs, diversion of management resources, negative publicity, reputational harm and other factors. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2023 | |
Temporary Equity Disclosure [Abstract] | |
Preferred Stock | 10. Preferred Stock Series A Common Stock Equivalent Convertible Preferred Stock In January 2022, the Company entered into an exchange agreement (the “Exchange Agreement”) with Deerfield Private Design Fund IV, L.P. (the “Deerfield Holder”), pursuant to which the Deerfield Holder exchanged an aggregate of 2,500,000 shares of the Company’s common stock held by the Deerfield Holder for 2,500 shares of a newly created class of non-voting preferred stock designated as Series A Common Stock Equivalent Convertible Preferred Stock. Additionally, in connection with the issuance of the Series A Common Stock Equivalent Convertible Preferred Stock, the Company filed a Certificate of Designation, Preferences and Rights of Series A Common Stock Equivalent Convertible Preferred Stock, par value $ 0.0001 per share, of the Company with the Secretary of State of the State of Delaware. Each outstanding share of Series A Common Stock Equivalent Convertible Preferred Stock is entitled to a de minimis liquidation preference of $ 0.0001 per share. The Series A Common Stock Equivalent Convertible Preferred Stock is convertible into 1,000 shares of common stock for each share of Series A Common Stock Equivalent Convertible Preferred Stock at the option of the holder. Additionally, the ability of a holder to convert non-voting Series A Common Stock Equivalent Convertible Preferred Stock into common stock is prohibited to the extent that, upon such conversion, such holder, its affiliates and other persons whose ownership of common stock would be aggregated with that of such holder for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, would exceed 4.9 % of the total number of shares of common stock then outstanding. The Company classifies Series A Common Stock Equivalent Convertible Preferred Stock as permanent equity on the balance sheet because it is not redeemable for cash or other assets of the Company and is not considered debt under ASC 480. There are no features of the Series A Common Stock Equivalent Convertible Preferred Stock that require bifurcation and separate accounting under ASC 815 Derivatives and Hedging . Series A Common Stock Equivalent Convertible Preferred Stock is considered a participating security for purposes of calculating earnings per share under ASC 260 because it participates in dividends ratably on an as-converted basis with common stock. |
Stock Incentive Plan
Stock Incentive Plan | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Incentive Plan | 11. Stock Incentive Plans 2021 and 2016 Equity Incentive Plans The Company’s Board of Directors and stockholders adopted and approved the Company’s 2021 Equity Incentive Plan (the “2021 Plan”) in May 2021, which was amended in July 2022. The 2021 Plan replaced the Company’s 2016 Equity Incentive Plan adopted in September 2016 (the “2016 Plan”); however, awards outstanding under the 2016 Plan will continue to be governed by their existing terms. The number of shares of the Company’s common stock that were initially available for issuance under the 2021 Plan equaled the sum of 7,500,000 shares plus 585,720 shares that were then available for issuance under the 2016 Plan. The 2021 Plan provides for the following types of awards: incentive and nonqualified stock options, stock appreciation rights, restricted shares and restricted stock units. As of December 31, 2023, 3,810,957 shares of common stock remained available for future grants under the 2021 Plan. The number of shares of common stock reserved for issuance under the 2021 Plan are increased automatically on the first business day of each fiscal year, commencing in 2022 and ending in 2031, by a number equal to the lesser of: (i) 5% of the shares of common stock outstanding on the last business day of the prior fiscal year; or (ii) the number of shares determined by the Company’s Board of Directors. In general, to the extent that any awards under the 2021 Plan are forfeited, terminated, expired or lapsed without the issuance of shares, or if the Company reacquires the shares subject to awards granted under the 2021 Plan, those shares will again become available for issuance under the 2021 Plan, as will shares applied to pay the exercise or purchase price of an award or to satisfy tax withholding obligations related to an award. Stock-based awards are governed by agreements between the Company and the recipients. Incentive stock options and nonqualified stock options may be granted under the 2021 Plan (and previously the 2016 Plan) at an exercise price of not less than 100 % of the fair market value of the Company’s common stock on the date of grant. The grant date is the date the terms of the award are formally approved by the Company’s Board of Directors or its designee. In August 2022, the Company completed an exchange of 984,291 options owned by eligible non-executive employees with exercise prices ranging from $ 10.99 to $ 26.23 for the same number of options with an exercise price of $ 3.60 . The requisite service period and the contractual term of the new options were not changed from the exchanged options, and the exchanged options were cancelled. The exercise price of $ 3.60 was the volume-weighted average price of the Company’s common stock for the 20-day period immediately prior to the exchange. The exchange was treated as an option modification under GAAP, and the total incremental expense resulting from the exchange will be $ 1.2 million, of which $ 0.4 million was recognized in 2022, $ 0.2 million was recognized in 2023, and the remaining will be recognized over a weighted-average period of approximately 0.9 years from December 31, 2023. The Company will continue to recognize the grant-date fair value of the exchanged options over the remaining service period . Stock Option Activity The following table summarizes stock option activity during the year ended December 31, 2023: Number of Options Weighted-Average Weighted-Average Aggregate Intrinsic Value Outstanding at December 31, 2022 9,637,022 $ 5.35 Exercisable at December 31, 2022 4,066,881 4.17 Granted 3,167,750 1.08 Exercised ( 23,479 ) 0.56 Canceled or forfeited ( 1,029,544 ) 5.56 Outstanding at December 31, 2023 11,751,749 $ 4.19 8.0 $ 93 Exercisable at December 31, 2023 6,045,163 $ 4.55 7.3 $ 52 Options outstanding as of December 31, 2023 consist of options vested and expected to vest. Aggregate intrinsic value in the table above is the total in-the-money value of the options above as of December 31, 2023, which is the aggregate of the difference between the Company’s last closing stock price per share of $ 0.46 as of December 31, 2023 and the exercise price of each option that has an exercise price of lower than $ 0.46 . The intrinsic value of options exercised during the years ended December 31, 2023 and 2022, calculated based on the stock price on the date of each exercise, was $ 31 thousand and $ 1.3 million, respectively. The 2016 Plan allows for the early exercise of awards to plan participants subject to the right of repurchase by the Company at the lower of the original exercise price or fair market value for unvested awards. As of December 31, 2023 and December 31, 2022, the Company had a liability for the cash received from the early exercise of stock options in the amount of $ 0.1 million and $ 0.5 million, respectively. The Company reduces the liability as the underlying shares vest in accordance with the vesting terms of the awards or when the Company repurchases unvested awards. At December 31, 2023 and December 31, 2022, there were 34,384 a nd 526,660 , respectively, of early exercised stock options that remain subject to the Company’s repurchase right. Restricted Stock Unit Activity Restricted stock units (“RSUs”) represent the right to receive common stock, subject to vesting for continued service to the Company. The following table summarizes RSU activity during the year ended December 31, 2023: Number of Units Weighted-Average Outstanding at December 31, 2022 - $ - Granted 4,743,850 1.13 Vested ( 415,528 ) 1.78 Canceled ( 250,873 ) 1.88 Outstanding at December 31, 2023 4,077,449 $ 1.02 Employee Stock Purchase Plan In May 2021, the Company’s Board of Directors approved the 2021 Employee Stock Purchase Plan (the “ESPP”). A total of 730,000 shares of common stock was initially reserved for issuance under the ESPP. The price at which common stock is purchased by employees under the ESPP is equal to 85 % of the fair market value of the common stock on the first day of the offering period or purchase date, whichever is lower. During the year ended December 31, 2023, 1,058,431 shares of common stock were purchased by the Company’s employees under the ESPP. Stock-based Compensation Summary The classification of stock-based compensation expense is summarized as follows (in thousands): Year Ended December 31, 2023 2022 Research and development $ 3,748 $ 3,970 Selling, general and administrative 7,656 9,699 Total stock-based compensation expense $ 11,404 $ 13,669 As of December 31, 2023, total unrecognized stock-based compensation expense was $ 19.5 million and is expected to be recognized over a weighted-average period of approximately 2.3 years. The following table shows the weighted-average assumptions used to compute the fair value of the awards granted to employees and nonemployees using the Black-Scholes option pricing model during the periods below: Year Ended December 31, Assumption 2023 2022 Expected volatility 72.47 % 57.56 % Expected term (years) 5.3 − 6.1 5.2 − 6.1 Expected dividend yield 0.00 % 0.00 % Risk-free interest rate 4.15 % 1.98 % Common stock reserved for future issuance under equity incentive plans consisted of the following as of December 31, 2023: Stock options and restricted stock units issued and outstanding under all Plans 15,829,198 Authorized for future grants under the 2021 Plan 3,810,957 Authorized for future purchases under the ESPP 540,679 Total as of December 31, 2023 20,180,834 The table above does not include 34,384 of common stock for early exercised stock options that remain subject to the Company’s repurchase right. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes Due to its net losses for the years ended December 31, 2023 and 2022 , and since it has a full valuation allowance against deferred tax assets, the Company did no t record any provision or benefit for income taxes. There were no components of current or deferred federal, state or foreign tax provisions for the year ended December 31, 2023 or 2022. The difference between income taxes computed using the U.S. federal income statutory tax rate and the provision for income taxes is as follows (in thousands): December 31, 2023 2022 Income taxes at statutory rates $ ( 19,912 ) $ ( 19,085 ) State income tax, net of federal benefit ( 4,422 ) ( 2,615 ) Research credit ( 3,945 ) ( 3,434 ) Change in valuation allowance 26,988 24,423 Permanent items and other 1,291 711 Income tax expense $ - $ - Significant components of the Company’s deferred tax assets and deferred tax liabilities are as follows (in thousands): December 31, 2023 2022 Deferred tax assets: Net operating loss carryforward $ 54,252 $ 40,101 Credits 13,371 9,433 Lease liability 15,193 11,673 Section 174 capitalized research and development 13,765 7,408 Other 5,338 3,972 Total deferred tax assets 101,919 72,587 Valuation allowance ( 86,196 ) ( 59,435 ) Net deferred tax assets 15,723 13,152 Deferred tax liabilities: Right-of-use lease assets ( 13,227 ) ( 10,983 ) Fixed assets ( 2,496 ) ( 2,169 ) Total deferred tax liabilities ( 15,723 ) ( 13,152 ) Total net deferred taxes $ - $ - At December 31, 2023 the Company had federal and state tax loss carryforwards of approximately $ 195.3 million and $ 188.8 million , respectively. The federal net operating loss generated prior to 2018 and state net operating loss carryforwards begin to expire in 2036 , if unused. The federal net operating loss carryover includes $ 191.5 million of net operating losses generated from 2018 through the current period which, under current tax law, will carryover indefinitely. At December 31, 2023, the Company had federal and state tax credit carry forwards of approximately $ 9.4 million and $ 7.7 million , respectively. The Company has not performed a formal research and development credit study with respect to these credits. The federal credits will begin to expire in 2037 , if unused, and the state credits carry forward indefinitely. Due to the Company’s history of losses and uncertainty regarding future earnings, a valuation allowance has been recorded against the Company’s deferred tax assets, as it is more likely than not that such assets will not be realized. The net change in the total valuation allowance for the years ended December 31, 2023 and December 31, 2022 was $ 26.8 million and $ 24.6 million , respectively. Pursuant to Internal Revenue Code of 1986, as amended (“IRC”), specifically IRC §382 and IRC §383, the Company’s ability to use net operating loss and research and development tax credit carryforwards (“tax attribute carryforwards”) to offset future taxable income is limited if the Company experiences a cumulative change in ownership of more than 50 % within a three-year testing period. The Company has not completed an ownership change analysis pursuant to IRC Section 382. If ownership changes within the meaning of IRC Section 382 are identified as having occurred, the amount of remaining tax attribute carryforwards available to offset future taxable income and income tax expense in future years may be significantly restricted or eliminated. Any limitation may result in the expiration of a portion of the net operating loss or research credit carryforwards before utilization. The Company recognizes a tax benefit from an uncertain tax position when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Income tax positions must meet a more likely than not recognition threshold to be recognized. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company had no accrual for interest and penalties on the Company’s balance sheets and has not recognized interest and/or penalties in the statements of operations and comprehensive loss for the years ended December 31, 2023 and 2022. The following table summarizes the changes to the Company’s unrecognized tax benefits for the periods presented (in thousands): December 31, 2023 2022 Balance at beginning of year $ 1,237 $ 866 Increases (decreases) related to prior year tax positions 50 ( 50 ) Increases related to current year tax positions 936 421 Balance at end of year $ 2,223 $ 1,237 If recognized, these amounts would not affect the Company’s effective tax rate, since they would be offset by an equal corresponding adjustment in the deferred tax asset valuation allowance. The Company does not anticipate there will be a significant change in unrecognized tax benefits within the next twelve months. The Company is subject to taxation in the United States and various state jurisdictions. All jurisdictions are open to examination for all years since inception. The Com pany has not been, nor is it currently, under examination by any federal or state tax authority. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Income Statement [Abstract] | |
Net Loss Per Share | 13. Net Loss per Share The Company’s preferred stock was considered participating securities for purposes of calculating earnings per share because it had a right to participate in dividends with common stock. However, because the Company’s preferred stock does not have a contractual obligation to share in the losses of the Company on a basis that is objectively determinable, it was excluded from the calculation of basic net loss per share. The following common stock equivalents were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect: December 31, 2023 2022 Employee stock options and RSUs issued and outstanding 15,829,198 9,637,022 Series A Common Stock Equivalent Convertible Preferred Stock 2,500,000 2,500,000 Common stock subject to the Company’s repurchase right 34,384 526,660 Total 18,363,582 12,663,682 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events On March 14, 2024, the officers of the Company approved a plan for a workforce reduction of approximately 20 % of headcount in order to focus the Company’s resources more heavily on its spatial sequencing roadmap. The Company will incur expenses in the first quarter 2024 related to one-time termination benefits provided to the affected employees, including severance and healthcare benefits, which will be accounted for under ASC 420. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Liquidity and Capital Resources | Liquidity and Capital Resources The Company has incurred net losses since inception and, as of December 31, 2023 and 2022, had an accumulated deficit of $ 337.6 million and $ 242.8 million , respectively. The Company has a limited operating history and the revenue and income potential of the Company’s business are unproven. From incorporation in June 2016 through December 31, 2023, substantially all of the Company’s operations have been funded by the sales of equity securities and issuances of debt. As of December 31, 2023, the Company had cash, cash equivalents and short-term investments of $ 173.9 million . The Company believes that its cash, cash equivalents and short-term investments as of December 31, 2023 are sufficient to fund its operations for at least 12 months from the issuance date of the accompanying financial statements . |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The preparation of the Company’s financial statements requires management to make estimates and assumptions that impact the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the Company’s financial statements and accompanying notes. Although these estimates are based on the Company’s knowledge of current events and actions it may undertake in the future, actual results may significantly differ from these estimates and assumptions. For the year ended December 31, 2023 and 2022 , significant estimates and assumptions include the value of lease liabilities and right-of-use lease assets. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash readily available in checking, savings, money market funds and sweep accounts. The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. |
Restricted Cash | Restricted Cash Restricted cash is held in a separate restricted bank account as the collateral for the security deposits on its executed lease agreements. The Company has classified restricted cash as noncurrent on its balance sheets. The following table provides a summary of cash, cash equivalents and restricted cash reported within the balance sheets (in thousands): December 31, 2023 2022 Cash and cash equivalents $ 16,233 $ 74,266 Restricted cash 600 1,711 Total $ 16,833 $ 75,977 |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments, which potentially subject the Company to a concentration of credit risk, consist primarily of cash, cash equivalents and short-term investments. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company has not experienced any losses in such accounts and management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. |
Short-term Investments | Short-term Investments As of December 31, 2023 and 2022, short-term investments primarily consisted of U.S. Treasury securities, asset-backed securities and corporate debt securities. The Company classifies its investments in securities as available-for-sale because, for accounting purposes, they are not considered to be either held-to-maturity securities or trading securities. They are not considered to be held-to-maturity securities because the Company does not have the positive intent to hold those securities to maturity. They are not considered trading securities because they are not acquired with the intent of selling them within hours or days. The Company’s investments in securities are classified as current as they are available to use to fund current operations, and the Company has the ability and intent to do so. Short-term investments are carried at fair value with the unrealized gains and losses included in other comprehensive income (loss) as a component of stockholders’ equity until realized. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity and recorded as interest income. Realized gains and losses are determined using the specific identification method and are included in other income (expense). The Company evaluates its investments in securities that are in an unrealized loss position quarterly to determine if those securities are other-than-temporarily impaired. If the Company intends to sell or if it is more likely than not that the Company will be required to sell those securities prior to the recovery of their book value, then those securities would be considered other-than-temporarily-impaired, and the Company would record this impairment as a loss through other income (expense). During the years ended December 31, 2023 and 2022, the Company concluded that none of its investments in securities were other-than-temporarily-impaired and thus recorded no impairment losses for its investments in securities. The following tables summarize the short-term investments held (in thousands): December 31, 2023 Amortized Gross Estimated U.S. treasury securities $ 149,129 $ 158 $ 149,287 Corporate debt securities 8,255 ( 3 ) 8,252 Asset-backed securities $ 169 $ - $ 169 Total $ 157,553 $ 155 $ 157,708 December 31, 2022 Amortized Gross Estimated U.S. treasury securities $ 62,776 $ ( 244 ) $ 62,532 Corporate debt securities 102,020 ( 553 ) 101,467 Asset-backed securities $ 6,351 $ ( 40 ) $ 6,311 Total $ 171,147 $ ( 837 ) $ 170,310 The following table summarizes contractual maturities of available-for-sale securities held (in thousands): December 31, 2023 2022 Due within one year $ 157,540 $ 155,920 Due after one but within five years 168 14,390 Total $ 157,708 $ 170,310 |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net, which consists of lab equipment, computers and software, furniture and fixtures, leasehold improvements and construction in process, are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets (generally three to five years). Leasehold improvements are amortized over the remaining life of the lease or the useful life of the asset, whichever is shorter. Construction in process is not depreciated until placed into service. Repairs and maintenance costs are charged to expense as incurred. |
Inventory | Inventory Inventory includes raw materials, which are goods to be consumed directly or indirectly in production, work in process, which are goods in the course of production, and finished goods, which are goods awaiting sale. Inventory is recorded at the lower of cost or net realizable value. Costs are based on standard costs that are adjusted regularly to reflect current conditions so that at the balance-sheet date standard costs reasonably approximate costs under a first-in, first-out basis. Standard costs include acquisition and production costs. Raw materials include inventories that may be used in research and development activities, and such items are expensed as consumed or capitalized as property and equipment and depreciated. We record write-downs of inventory for potentially excess, obsolete, or impaired goods in order to state inventory at net realizable value. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets Long-lived assets consist primarily of property and equipment and right-of-use lease assets. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. During 2023, the Company identified an indicator of impairment of its long-lived assets due to a sustained decline in the trading price of the Company’s common stock over the preceding year, resulting in the Company’s market capitalization being below its net asset value. Although the Company is confident in the utility of its long-lived assets, and there have been no changes in their intended use, the implied cash flows based on the market capitalization of the Company indicated its long-lived assets may not be recoverable. In determining the fair value of its long-lived assets, the Company used a combination of discounted cash flows and observable market data. As a result of its fair value analysis, the Company recorded a $ 1.9 million impairment charge on its property and equipment as selling, general and administrative expense in the statement of operations during the year ended December 31, 2023 . No impairment was recorded during the year ended December 31, 2022 . |
Fair Value Measurements | Fair Value Measurements Certain assets and liabilities are carried at fair value under GAAP and consist primarily of cash, cash equivalents, short-term investments, restricted cash, accounts payable, accrued liabilities. The carrying amounts of cash, cash equivalents, accounts payable, and accrued liabilities approximate their fair values due to the short-term nature of these instruments. None of the Company’s non-financial assets or liabilities are recorded at fair value on a recurring basis. |
Leases | Leases The Company adopted Accounting Standards Codification (“ASC”) Topic 842, Leases (“ASC 842”), effective January 1, 2022. ASC 842 requires the Company to recognize on the balance sheet lease liabilities and corresponding right-of-use (“ROU”) lease assets for its operating leases where the Company is the lessee. The initial impact of the adoption is discussed below in the section titled “Recent Accounting Pronouncements—Adopted.” The Company determines if an arrangement is or contains a lease at contract inception. Lease liabilities represent the Company’s obligation to make payments under its operating leases. ROU lease assets represent the Company’s right to use assets under its operating leases. The Company determines the value of lease liabilities and ROU lease assets on a lease-by-lease basis. A lease liability is recognized at the commencement date of an operating lease based on the present value of the future lease payments over the expected lease term. A corresponding ROU lease asset is recognized at the commencement date of an operating lease based on the value of the lease liability, adjusted for any lease incentives received, any initial direct costs incurred and any lease payments made at or before the lease commencement date. The Company made a policy election to not recognize lease liabilities and ROU lease assets for operating leases with an expected lease term of twelve months or less. The Company calculates the present value of lease payments using the discount rate implicit in the lease, unless that rate cannot be readily determined. In that case, the Company uses its incremental borrowing rate based on information available at the date of lease commencement. The incremental borrowing rate is the estimated rate of interest that the Company would pay to borrow, on a collateralized basis, an amount equal to the lease payments over the expected lease term. After lease commencement, the Company measures its operating leases as follows: (i) the lease liability based on the present value of the remaining lease payments using the incremental borrowing rate determined at lease commencement; and (ii) the ROU lease asset based on the remeasured lease liability, adjusted for any unamortized lease incentives received, any unamortized initial direct costs and the cumulative difference between lease expense and amounts paid under the lease. Lease expense is recognized on a straight-line basis over the expected lease term. Any lease incentives received and any initial direct costs are amortized on a straight-line basis over the expected lease term. Variable lease payments such as those related to property taxes, insurance and common area maintenance are recognized as expense when incurred. |
Revenue Recognition | Revenue Recognition The Company generates revenue from sales of its products, which consist of the G4 instrument, related consumable flow cell kits and services. Revenue from instrument sales is recognized generally upon customer acceptance. Revenue from consumables sales is recognized generally upon shipment to the customer. Revenue from services, which are primarily comprised of assurance-type services, is recognized over the applicable service period. Revenue is recorded net of discounts and sales taxes. The Company invoices its customers for instruments generally upon acceptance, for consumables generally on delivery, and for services generally in advance of the service period. Invoice terms are generally net 30 days. Cash received from customers in advance of revenue recognition is recorded as a contract liability. The Company’s contracts with its customers generally do not include rights of return or a significant financing component. The Company regularly enters into contracts that include a combination of products and services, which are distinct within the context of the contract and are accounted for as separate performance obligations. The transaction price is allocated to each performance obligation in proportion to its standalone selling price. Until the Company has sufficient volume of historical sales data for each performance obligation, the Company determines the standalone selling price using observable prices when available and with consideration of current market conditions which is primarily based on prices set by management, adjusted for applicable discounts. The Company then recognizes revenue for each performance obligation as that performance obligations is satisfied as discussed above. The Company has entered into instrument arrangements with certain customers, under which the Company provides the G4 instrument at no cost to the customer, other than shipping, and the customer pays for consumables at list price, or at list price plus a mark-up, as consumables are ordered, shipped and invoiced. Revenue is recognized as consumables are shipped to the customer and disclosed within consumables revenue below. The G4 instrument provided to the customer is recorded on the balance sheet as property and equipment and disclosed as instruments at customer sites under Note 6 to these financial statements. Revenue associated with any lease elements of these arrangements was not material during the years ended December 31, 2023 and 2022. For the year ended December 31, 2023, the Company recognized $ 2.5 million and $ 0.4 million of revenue related to sales of instruments and consumables products, respectively. Contract liabilities, which consists of deferred revenue, as of December 31, 2023 and 2022 were $ 0.3 million and $ 0.1 million, respectively, were recorded as other noncurrent liabilities. Deferred revenue represents the value of performance obligations that have been invoiced but for which revenue has not yet been earned. For the year ended December 31, 2023 and 2022, all of the Company’s revenue was generated within the United Sates. During the period, the Company generated approximately 35 % of revenue from its top three customers. |
Cost of Revenue | Cost of Revenue Cost of revenue consists of the following: direct costs of the materials and labor to build products; overhead such as facilities and indirect labor that support manufacturing; shipping and handling costs; labor and direct costs to install the G4; estimated costs to satisfy customary assurance-type warranty provisions; and depreciation and service costs for instruments provided to customers under instrument arrangements described above. |
Research and Development Expense | Research and Development Expense The Company’s research and development expense consists primarily of the following: salaries, payroll taxes, employee benefits and stock-based compensation for personnel engaged in research and development activities; fees paid to consultants; license fees paid to third parties for use of their intellectual property; laboratory supplies and development materials; allocated information technology and facilities costs; and depreciation. Research and development costs are charged to expense as incurred. |
Patent Costs | Patent Costs Costs related to filing and pursuing patent applications are recorded as selling, general and administrative expenses within the Company’s statements of operations and expensed as incurred since recoverability of such expenditures is uncertain. |
Issuance Costs Related to Debt | Issuance Costs Related to Debt The Company allocates issuance costs between the individual freestanding instruments identified on the same basis as proceeds were allocated. Issuance costs associated with the issuance of debt is recorded as a direct reduction of the carrying amount of the debt liability, limited to the notional value of the debt. The Company accounts for the Silicon Valley Bank loan (see Note 8) as a liability measured at amortized cost and amortizes the related debt discount to interest expense using the effective interest method over the expected term of the debt. Issuance costs associated with the Silicon Valley Bank loan are included in long-term debt on the balance sheet. |
Stock-based Compensation | Stock-based Compensation The Company accounts for stock-based compensation by measuring and recognizing compensation expense for all stock-based awards made to employees and non-employees based on estimated grant-date fair values. The Company uses the straight-line method to recognize compensation cost over the required service period of the award, which is generally the vesting period of the award. The Company recognizes actual forfeitures by reducing the stock-based compensation in the same period that the forfeitures occur. The Company estimates the fair value of stock-based option awards to employees and non-employees using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of subjective assumptions, including the fair value of common stock, expected term, expected volatility, risk-free interest rate and expected dividend yield, which are described in greater detail below. Inputs to the Black-Scholes option pricing model are subjective and generally require the use of judgment. Changes in the assumptions can materially affect how much stock-based compensation is recognized. These inputs are as follows: • Fair value of common stock — For awards granted prior to the Initial Public Offering (the “IPO”), when there was no public market for the Company’s common stock, the grant date fair value of the Company’s common stock was determined by the Company’s board of directors based in part on valuations of the Company’s common stock prepared by a third-party valuation specialist. For awards granted after the IPO, the fair value of common stock is the closing price per share of the Company’s common stock on the grant date as reported on the Nasdaq. • Expected term —The expected term represents the average period that options granted are expected to be outstanding and is determined using the simplified method (based on the mid-point between the weighted-average vesting period and the end of the contractual term). The Company uses the simplified method because the Company has concluded that its historical option exercise experience does not provide a reasonable basis to estimate expected term. • Expected volatility —The Company had no publicly available stock price information prior to its IPO and limited publicly available stock price information after its IPO; therefore, the Company used the historical volatility of the stock price of similar publicly traded companies. The historical volatility is calculated based on a period of time commensurate with the expected term. • Risk-free interest rate —The risk-free interest rate is based on the U.S. Treasury zero coupon issues in effect at the time of grant for periods corresponding with the expected term. • Expected dividend yield —The Company has never paid dividends and does not intend to pay dividends in the foreseeable future. Therefore, the Company used an expected dividend yield of zero. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statements and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized as income or expense in the period that includes the enactment date. The Company recognizes net deferred tax assets to the extent that the Company believes these assets are more likely than not to be realized. In making such a determination, management considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations. If management determines that the Company would be able to realize its deferred tax assets in the future in excess of their net recorded amount, management would make an adjustment to the deferred tax asset valuation allowance, which would reduce any provision for income taxes. The Company records uncertain tax positions on the basis of a two-step process whereby: (i) management determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position; and (ii) for those tax positions that meet the more-likely-than-not recognition threshold, management recognizes the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority. The Company will recognize interest and penalties related to unrecognized tax benefits within income tax expense. |
Other Comprehensive Loss | Other Comprehensive Loss Other comprehensive loss is defined as a change in equity during a period from transactions and other events and circumstances from non-owner sources. The only component of other comprehensive loss is unrealized loss on available-for-sale securities, which have been reflected in the statements of comprehensive loss and as a separate component in the statements of preferred stock and stockholders’ equity. |
Net Loss per Share | Net Loss per Share In periods of net loss, basic net loss per share is computed by dividing net loss available to common stockholders by the weighted-average number of shares of common stock outstanding during the period, without consideration for potentially dilutive securities. Outstanding stock options, convertible preferred stock and shares of common stock subject to repurchase by the Company are excluded from the calculation of diluted net loss per common share for the periods presented as their effect would be anti-dilutive. Thus, for all periods presented, there is no difference in the number of shares used to calculate basic and diluted net loss per share. |
Segment Information | Segment Information Operating segments are components of a public entity that: (i) engage in business activities from which they may recognize revenues and incur expenses; (ii) have operating results that are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance; and (iii) have discrete financial information available. The Company views its operations and manages its business as one operating segment, and thus has one reportable segment. The Company’s long-lived assets are located in the United States. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements—Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (“ASU 2016-02”), codified as ASC 842. ASC 842 requires the Company to recognize on the balance sheet lease liabilities and corresponding ROU lease assets for its operating leases where the Company is the lessee. The Company adopted this standard effective January 1, 2022 using the modified retrospective method by applying the new standard to all leases existing as of January 1, 2022 and not restating any prior comparative periods. The Company elected the practical expedients to carry forward its historical lease classification, not reassess whether any expired or existing contracts are or contain leases and not reassess initial direct costs for existing leases. On January 1, 2022, the Company recorded operating lease liabilities of $ 7.1 million, ROU lease assets of $ 6.4 million, and derecognized deferred rent of $ 0.7 million. The additional disclosures required by the standard have been included in the section above titled “Leases” and in Note 9. In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments , which modifies the measurement and recognition of credit losses for most financial assets and certain other instruments. The new standard requires the use of forward-looking expected credit loss models based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount, which may result in earlier recognition of credit losses under the new standard. The new standard also requires that credit losses related to available-for-sale debt securities be recorded as an allowance through net loss rather than reducing the carrying amount under the prior, other-than-temporary-impairment model. The new standard was adopted by the Company using the modified retrospective approach starting January 1, 2023. The Company determined there was no cumulative-effect transition adjustment to the opening balance of accumulated deficit for recognition of credit losses upon adoption of this standard based on its assessment of the collectability of its outstanding accounts receivable and the composition and credit quality of its short-term investments. Recent Accounting Pronouncements—Not Yet Adopted In July 2023, the FASB issued ASU No 2023-03, “Presentation of Financial Statements (Topic 205), Income Statement—Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation—Stock Compensation (Topic 718)” pursuant to SEC Staff Accounting Bulletin No. 120, which adds interpretive guidance for public companies to consider when entering into share-based payment transactions while in possession of material non-public information. The effective date of this update is for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The Company does not expect the adoption to have a material impact on its financial statements. In November 2023 the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which expands disclosure requirements to require entities to disclose significant segment expenses that are regularly provided to or easily computed from information regularly provided to the chief operating decision maker. This update also requires all annual disclosures currently required by Topic 280 to be disclosed in interim periods. The new disclosure requirements are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating these new expanded disclosure requirements. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash and Cash Equivalents, and Restricted Cash Reported the Balance Sheet | The following table provides a summary of cash, cash equivalents and restricted cash reported within the balance sheets (in thousands): December 31, 2023 2022 Cash and cash equivalents $ 16,233 $ 74,266 Restricted cash 600 1,711 Total $ 16,833 $ 75,977 |
Schedule of Short-Term Investments Held | The following tables summarize the short-term investments held (in thousands): December 31, 2023 Amortized Gross Estimated U.S. treasury securities $ 149,129 $ 158 $ 149,287 Corporate debt securities 8,255 ( 3 ) 8,252 Asset-backed securities $ 169 $ - $ 169 Total $ 157,553 $ 155 $ 157,708 December 31, 2022 Amortized Gross Estimated U.S. treasury securities $ 62,776 $ ( 244 ) $ 62,532 Corporate debt securities 102,020 ( 553 ) 101,467 Asset-backed securities $ 6,351 $ ( 40 ) $ 6,311 Total $ 171,147 $ ( 837 ) $ 170,310 |
Schedule of Contractual Maturities of Available-for-Sale Debt Securities Held | The following table summarizes contractual maturities of available-for-sale securities held (in thousands): December 31, 2023 2022 Due within one year $ 157,540 $ 155,920 Due after one but within five years 168 14,390 Total $ 157,708 $ 170,310 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis | The following tables summarize the Company’s assets measured at fair value on a recurring basis (in thousands): December 31, 2023 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash $ 16,184 $ - $ - $ 16,184 Money market funds 49 - - 49 Total cash and cash equivalents 16,233 - - 16,233 Short-term investments: U.S. Treasury securities 149,286 - - 149,286 Corporate debt securities - 8,253 - 8,253 Asset-backed securities - 169 - 169 Total short-term investments 149,286 8,422 - 157,708 Total cash and cash equivalents and short-term investments $ 165,519 $ 8,422 $ - $ 173,941 December 31, 2022 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash $ 48,690 $ - $ - $ 48,690 Money market funds 25,576 - - 25,576 Total cash and cash equivalents 74,266 - - 74,266 Short-term investments: U.S. Treasury securities 62,532 - - 62,532 Corporate debt securities - 101,467 - 101,467 Asset-backed securities - 6,311 - 6,311 Total short-term investments 62,532 107,778 - 170,310 Total cash and cash equivalents and short-term investments $ 136,798 $ 107,778 $ - $ 244,576 |
Inventory, Net (Tables)
Inventory, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory, net consisted of the following (in thousands): December 31, 2023 2022 Raw materials $ 11,627 $ 14,508 Work in process 1,276 3,276 Finished goods 669 437 Total inventory $ 13,572 $ 18,221 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): December 31, 2023 2022 Prepaid expenses $ 1,672 $ 3,003 Interest receivable 1,019 1,099 Current deposits and other current assets 1,459 620 Total prepaid expenses and other current assets $ 4,150 $ 4,722 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net, consisted of the following (in thousands): December 31, Useful Life 2023 2022 Equipment 5 years $ 12,837 $ 8,656 Computers and software 3 years 3,445 2,705 Leasehold improvements 14 years or less 2,244 2,127 Furniture and fixtures 5 years or less 660 1,854 Instruments at customer sites 5 years 2,527 - Total property and equipment, gross 21,713 15,342 Less: accumulated depreciation ( 8,021 ) ( 4,558 ) Total property and equipment, net $ 13,692 $ 10,784 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued expenses consisted of the following (in thousands): December 31, 2023 2022 Accrued compensation and other employee benefits $ 5,229 $ 3,580 Accrued research and development expenses 264 360 Accrued professional services 178 204 Accrued other expenses 408 439 Total accrued expenses $ 6,079 $ 4,583 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term debt and unamortized debt discount balances | December 31, 2023 2022 Total debt $ 10,500 $ 10,500 Less: issuance costs ( 287 ) ( 435 ) Total debt, net of issuance costs $ 10,213 $ 10,065 Less: current portion of long-term debt 1,312 - Total long-term debt $ 8,901 $ 10,065 |
Summary of Future Minimum Principal Payments on Long-term Debt | Future minimum payments of outstanding principal and interest under the 2021 SVB Loan are as follows (in thousands): As of December 31, 2023 2024 $ 2,206 2025 5,886 2026 4,510 Total future minimum payments 12,602 Less: interest, Final Payment fee ( 2,102 ) Total debt 10,500 Less: issuance costs ( 287 ) Total debt, net of issuance costs $ 10,213 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments Under Non-Cancelable Operating Leases | Future minimum payments under the Company’s non-cancelable operating leases as of December 31, 2023 are as follows (in thousands): 2024 $ 8,094 2025 5,716 2026 8,607 2027 8,580 2028 8,837 Thereafter 79,058 Future non-cancelable minimum lease payments 118,892 Less: present value discount ( 52,505 ) Total lease liabilities 66,387 Less: current portion 7,764 Lease liabilities, noncurrent $ 58,623 |
Stock Incentive Plan (Tables)
Stock Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | The following table summarizes stock option activity during the year ended December 31, 2023: Number of Options Weighted-Average Weighted-Average Aggregate Intrinsic Value Outstanding at December 31, 2022 9,637,022 $ 5.35 Exercisable at December 31, 2022 4,066,881 4.17 Granted 3,167,750 1.08 Exercised ( 23,479 ) 0.56 Canceled or forfeited ( 1,029,544 ) 5.56 Outstanding at December 31, 2023 11,751,749 $ 4.19 8.0 $ 93 Exercisable at December 31, 2023 6,045,163 $ 4.55 7.3 $ 52 |
Summary of Equity Based Compensation Expense | The classification of stock-based compensation expense is summarized as follows (in thousands): Year Ended December 31, 2023 2022 Research and development $ 3,748 $ 3,970 Selling, general and administrative 7,656 9,699 Total stock-based compensation expense $ 11,404 $ 13,669 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table shows the weighted-average assumptions used to compute the fair value of the awards granted to employees and nonemployees using the Black-Scholes option pricing model during the periods below: Year Ended December 31, Assumption 2023 2022 Expected volatility 72.47 % 57.56 % Expected term (years) 5.3 − 6.1 5.2 − 6.1 Expected dividend yield 0.00 % 0.00 % Risk-free interest rate 4.15 % 1.98 % |
Schedule of Common Stock Reserved for Future Issuance | Common stock reserved for future issuance under equity incentive plans consisted of the following as of December 31, 2023: Stock options and restricted stock units issued and outstanding under all Plans 15,829,198 Authorized for future grants under the 2021 Plan 3,810,957 Authorized for future purchases under the ESPP 540,679 Total as of December 31, 2023 20,180,834 The table above does not include 34,384 of common stock for early exercised stock options that remain subject to the Company’s repurchase right. |
Schedule of RSU activity during the year | Restricted stock units (“RSUs”) represent the right to receive common stock, subject to vesting for continued service to the Company. The following table summarizes RSU activity during the year ended December 31, 2023: Number of Units Weighted-Average Outstanding at December 31, 2022 - $ - Granted 4,743,850 1.13 Vested ( 415,528 ) 1.78 Canceled ( 250,873 ) 1.88 Outstanding at December 31, 2023 4,077,449 $ 1.02 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation of the Statutory U.S. Federal Tax Rate to the Effective Income Tax Rate | The difference between income taxes computed using the U.S. federal income statutory tax rate and the provision for income taxes is as follows (in thousands): December 31, 2023 2022 Income taxes at statutory rates $ ( 19,912 ) $ ( 19,085 ) State income tax, net of federal benefit ( 4,422 ) ( 2,615 ) Research credit ( 3,945 ) ( 3,434 ) Change in valuation allowance 26,988 24,423 Permanent items and other 1,291 711 Income tax expense $ - $ - |
Schedule of Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and deferred tax liabilities are as follows (in thousands): December 31, 2023 2022 Deferred tax assets: Net operating loss carryforward $ 54,252 $ 40,101 Credits 13,371 9,433 Lease liability 15,193 11,673 Section 174 capitalized research and development 13,765 7,408 Other 5,338 3,972 Total deferred tax assets 101,919 72,587 Valuation allowance ( 86,196 ) ( 59,435 ) Net deferred tax assets 15,723 13,152 Deferred tax liabilities: Right-of-use lease assets ( 13,227 ) ( 10,983 ) Fixed assets ( 2,496 ) ( 2,169 ) Total deferred tax liabilities ( 15,723 ) ( 13,152 ) Total net deferred taxes $ - $ - |
Summary of Reconciliation of Unrecognized Tax Benefit Activity | The following table summarizes the changes to the Company’s unrecognized tax benefits for the periods presented (in thousands): December 31, 2023 2022 Balance at beginning of year $ 1,237 $ 866 Increases (decreases) related to prior year tax positions 50 ( 50 ) Increases related to current year tax positions 936 421 Balance at end of year $ 2,223 $ 1,237 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Statement [Abstract] | |
Schedule of Anti-dilutive Securities Excluded from Computation of Diluted Net Loss Per Share | The following common stock equivalents were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect: December 31, 2023 2022 Employee stock options and RSUs issued and outstanding 15,829,198 9,637,022 Series A Common Stock Equivalent Convertible Preferred Stock 2,500,000 2,500,000 Common stock subject to the Company’s repurchase right 34,384 526,660 Total 18,363,582 12,663,682 |
Business - Additional Informati
Business - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Jan. 31, 2022 | |
Class Of Stock [Line Items] | |||
Accumulated deficit | $ (337,595) | $ (242,775) | |
Net Income (Loss) | (94,820) | $ (90,879) | |
Cash Cash Equivalents And Short Term Investments | $ 173,900 | ||
Period of operations sufficient to fund | 12 months | ||
Convertible Preferred Stock | |||
Class Of Stock [Line Items] | |||
Convertible Preferred Stock, Shares Issued upon Conversion | 1,000 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Segment | Dec. 31, 2022 USD ($) Segment | Jan. 01, 2022 USD ($) | |
Number of operating segments | Segment | 1 | ||
Number of reportable segments | Segment | 1 | ||
Impairment losses for long lived asset | $ 1,900 | $ 0 | |
Revenue | 2,911 | 765 | |
Deferred revenue | 300 | 100 | |
Total lease liabilities | 66,387 | $ 7,100 | |
Right-of-use lease assets | $ 57,797 | $ 45,896 | 6,400 |
Derecognized deferred rent | $ 700 | ||
Revenue [Member] | Customer Concentration Risk [Member] | |||
Number of customers | Segment | 3 | 3 | |
Revenue [Member] | Three Customers | Customer Concentration Risk [Member] | |||
Revenue from major customers percentage | 35% | 35% | |
Sales Of Instruments [Member] | |||
Revenue | $ 2,500 | ||
Consumables Products [Member] | |||
Revenue | $ 400 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Reconciliation of Cash, Cash equivalents, and Restricted Cash Reported within the Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | |||
Cash and cash equivalents | $ 16,233 | $ 74,266 | |
Restricted cash | 600 | 1,711 | |
Total | $ 16,833 | $ 75,977 | $ 201,736 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Short-Term Investments Held (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | $ 157,553 | $ 171,147 |
Gross Unrealized Gains (Losses) | 155 | (837) |
Estimated Fair Value | 157,708 | 170,310 |
U.S. Treasury Securities | ||
Amortized Cost | 149,129 | 62,776 |
Gross Unrealized Gains (Losses) | 158 | (244) |
Estimated Fair Value | 149,287 | 62,532 |
Corporate Debt Securities | ||
Amortized Cost | 8,255 | 102,020 |
Gross Unrealized Gains (Losses) | (3) | (553) |
Estimated Fair Value | 8,252 | 101,467 |
Asset-Backed Securities | ||
Amortized Cost | 169 | 6,351 |
Gross Unrealized Gains (Losses) | 0 | (40) |
Estimated Fair Value | $ 169 | $ 6,311 |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Contractual Maturities of Available-for-Sale Debt Securities Held (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Due within one year | $ 157,540 | $ 155,920 |
After one but within five years | 168 | 14,390 |
Total | $ 157,708 | $ 170,310 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Total assets | $ 173,941 | $ 244,576 |
Cash | ||
Assets: | ||
Total assets | 16,184 | 48,690 |
Money Market Funds | ||
Assets: | ||
Total assets | 49 | 25,576 |
Cash and cash equivalents | ||
Assets: | ||
Total assets | 16,233 | 74,266 |
U.S. Treasury Securities | ||
Assets: | ||
Total assets | 149,286 | 62,532 |
Corporate Debt Securities | ||
Assets: | ||
Total assets | 8,253 | 101,467 |
Asset-Backed Securities | ||
Assets: | ||
Total assets | 169 | 6,311 |
short-term investments | ||
Assets: | ||
Total assets | 157,708 | 170,310 |
Level 1 | ||
Assets: | ||
Total assets | 165,519 | 136,798 |
Level 1 | Cash | ||
Assets: | ||
Total assets | 16,184 | 48,690 |
Level 1 | Money Market Funds | ||
Assets: | ||
Total assets | 49 | 25,576 |
Level 1 | Cash and cash equivalents | ||
Assets: | ||
Total assets | 16,233 | 74,266 |
Level 1 | U.S. Treasury Securities | ||
Assets: | ||
Total assets | 149,286 | 62,532 |
Level 1 | short-term investments | ||
Assets: | ||
Total assets | 149,286 | 62,532 |
Level 2 | ||
Assets: | ||
Total assets | 8,422 | 107,778 |
Level 2 | Corporate Debt Securities | ||
Assets: | ||
Total assets | 8,253 | 101,467 |
Level 2 | Asset-Backed Securities | ||
Assets: | ||
Total assets | 169 | 6,311 |
Level 2 | short-term investments | ||
Assets: | ||
Total assets | $ 8,422 | $ 107,778 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Disclosure Asset And Liability Not Measured At Fair Value [Line Items] | ||
Total debt | $ 10,500 | $ 10,500 |
Inventory - Summery of Inventor
Inventory - Summery of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 11,627 | $ 14,508 |
Work in process | 1,276 | 3,276 |
Finished goods | 669 | 437 |
Total inventory | $ 13,572 | $ 18,221 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid expenses | $ 1,672 | $ 3,003 |
Interest receivable | 1,019 | 1,099 |
Current deposits | 1,459 | 620 |
Total prepaids expenses and other current assets | $ 4,150 | $ 4,722 |
Property and Equipment, Net (Ad
Property and Equipment, Net (Additional Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Impairment losses for long lived asset | $ 1,900 | $ 0 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 21,713 | $ 15,342 |
Less: Accumulated depreciation | (8,021) | (4,558) |
Total property and equipment, net | $ 13,692 | 10,784 |
Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Useful life | 5 years | |
Property and equipment | $ 12,837 | 8,656 |
Computers and Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Useful life | 3 years | |
Property and equipment | $ 3,445 | 2,705 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Useful life | 14 years or less | |
Property and equipment | $ 2,244 | 2,127 |
Furniture and Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Useful life | 5 years or less | |
Property and equipment | $ 660 | 1,854 |
Instruments at customer sites [Member] | ||
Property Plant And Equipment [Line Items] | ||
Useful life | 5 years | |
Property and equipment | $ 2,527 | $ 0 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Components of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued compensation and other employee benefits | $ 5,229 | $ 3,580 |
Accrued research and development expenses | 264 | 360 |
Accrued professional services | 178 | 204 |
Accrued other expenses | 408 | 439 |
Total accrued expenses | $ 6,079 | $ 4,583 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Nov. 30, 2019 | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Mar. 31, 2020 | |
Debt Instrument [Line Items] | ||||||||
Line Of Credit Facility Maximum Borrowing Capacity | $ 15,000 | $ 15,000 | ||||||
Total debt, net of issuance costs | $ 10,213 | $ 10,065 | ||||||
Common Stock, Shares, Issued | 73,823,161 | 71,854,688 | ||||||
Loan, maturity date | Sep. 01, 2026 | |||||||
Percentage of variable annual interest rate | 0.75% | |||||||
Interest rate during the period | 4% | |||||||
Interest rate due on maturity date | 4% | |||||||
Debt instrument face amount | $ 10,500 | $ 10,500 | ||||||
The SVB Warrant [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Less: issuance costs | $ 400 | |||||||
Silicon Valley Bank Warrant | ||||||||
Debt Instrument [Line Items] | ||||||||
Line Of Credit Facility Maximum Borrowing Capacity | 35,500 | $ 35,500 | ||||||
Temporary equity, shares converted | 117,088 | |||||||
Less: issuance costs | $ 300 | |||||||
Loan and Security agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Line Of Credit Facility Maximum Borrowing Capacity | $ 15,000 | $ 10,000 | 10,000 | |||||
Line of Credit Facility, Current Borrowing Capacity | $ 2,500 | |||||||
Loan and Security agreement | Silicon Valley Bank Warrant | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt, net of issuance costs | $ 7,500 | |||||||
2019 SVB Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Loan, maturity date | Sep. 01, 2023 | |||||||
Percentage of variable annual interest rate | 0.65% | |||||||
Interest rate during the period | 5.90% | |||||||
Interest rate due on maturity date | 5.50% | |||||||
First Tranche | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 10,500 | $ 10,500 | ||||||
2021 Silicon Valley Bank Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Line Of Credit Facility Maximum Borrowing Capacity | $ 25,000 | |||||||
Line of Credit Facility, Current Borrowing Capacity | $ 1,300 | |||||||
Loan Draw Down ,Period | Mar. 31, 2024 | |||||||
Debt instrument, interest per annum | 9.25% |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt and Unamortized Debt Discount Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Total debt | $ 10,500 | $ 10,500 |
Less: issuance costs | (287) | (435) |
Total debt, net of issuance costs | 10,213 | 10,065 |
Less: current portion of long-term debt | 1,312 | 0 |
Long-term debt, net | $ 8,901 | $ 10,065 |
Long-Term Debt - Schedule of Fu
Long-Term Debt - Schedule of Future Minimum Principal and Interest Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
2024 | $ 2,206 | |
2025 | 5,886 | |
2026 | 4,510 | |
Total future minimum payments | 12,602 | |
Less: interest, Final Payment fee | (2,102) | |
Total debt | 10,500 | $ 10,500 |
Less: issuance costs | (287) | (435) |
Total debt, net of issuance costs | $ 10,213 | $ 10,065 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2022 | Jun. 30, 2020 | Nov. 30, 2019 | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Commitment And Contingencies [Line Items] | ||||||
Accrued Payment related to Milestone | $ 400 | $ 400 | ||||
Gain (Loss) on Termination of Lease | $ 0 | $ 334 | ||||
Payments for Rent | $ 1,100 | |||||
Remaining weighted-average lease term | 13 years | 12 years 8 months 12 days | 2 years 10 months 24 days | |||
Weighted-average incremental borrowing rate | 9.70% | 9.10% | 3.60% | |||
Cash payments | $ 118,900 | $ 86,700 | $ 7,500 | |||
Lease costs | 11,800 | 9,300 | ||||
Short-term lease cost | 100 | |||||
Additional lease liabilities | 19,500 | |||||
Variable Lease, Cost | 3,500 | 2,700 | ||||
Operating lease cost | 8,300 | 6,500 | ||||
Two Buildings Member | ||||||
Commitment And Contingencies [Line Items] | ||||||
Gain (Loss) on Termination of Lease | 1,800 | |||||
Lease Incentive Payable Current | 1,000 | |||||
Security Deposit | $ 1,100 | |||||
Lease [Member] | ||||||
Commitment And Contingencies [Line Items] | ||||||
Payments For Proceeds From Tenant Allowance | $ 1,000 | |||||
Line of Credit Facility, Increase (Decrease) | $ 200 | |||||
Restricted Cash | 200 | |||||
Lease Agreement Member | ||||||
Commitment And Contingencies [Line Items] | ||||||
Line of Credit Facility, Increase (Decrease) | $ 400 | |||||
License Agreement | ||||||
Commitment And Contingencies [Line Items] | ||||||
Development and commercialization milestones payments | 3,900 | |||||
Aggregate amount paid to the terms of the agreement | 100 | $ 100 | ||||
Restricted Cash | $ 400 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Payments Under Non-Cancelable Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Commitments and Contingencies Disclosure [Abstract] | |||
2024 | $ 8,094 | ||
2025 | 5,716 | ||
2026 | 8,607 | ||
2027 | 8,580 | ||
2028 | 8,837 | ||
Thereafter | 79,058 | ||
Future non-cancelable minimum lease payments | 118,892 | ||
Less: discount | (52,505) | ||
Total lease liabilities | 66,387 | $ 7,100 | |
Less: current portion | 7,764 | ||
Lease liabilities, non current | $ 58,623 | $ 42,456 |
Preferred Stock - Additional in
Preferred Stock - Additional informations (Details) | 1 Months Ended |
Jan. 31, 2022 $ / shares shares | |
Class of Stock [Line Items] | |
Preferred Stock, Liquidation Preference Per Share | $ / shares | $ 0.0001 |
Percentage of amended shares of common stock | 4.90% |
Convertible Preferred Stock [Member] | |
Class of Stock [Line Items] | |
Convertible Preferred Stock, Shares Issued upon Conversion | 1,000 |
Deerfield Holder [Member] | |
Class of Stock [Line Items] | |
Stock Issued During Period Shares Conversion Of Convertible Securities | 2,500,000 |
Deerfield Holder [Member] | Convertible Preferred Stock [Member] | |
Class of Stock [Line Items] | |
Convertible Preferred Stock, Shares Issued upon Conversion | 2,500 |
Deerfield Holder [Member] | Series A convertible preferred stock[Member] | |
Class of Stock [Line Items] | |
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 |
Common Stock - Additional Infor
Common Stock - Additional Information (Details) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Equity [Abstract] | ||
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, par value per share | $ 0.0001 | $ 0.0001 |
Common Stock - Schedule of Comm
Common Stock - Schedule of Common Stock Reserved for Future Issuance (Details) | Dec. 31, 2023 shares |
Class of Stock [Line Items] | |
Common stock reserved for future issuance | 20,180,834 |
Stock options and restricted stock units issued and outstanding under all Plans | |
Class of Stock [Line Items] | |
Common stock reserved for future issuance | 15,829,198 |
Stock Incentive Plan - Addition
Stock Incentive Plan - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Aug. 31, 2022 | May 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock reserved for future issuance | 20,180,834 | |||
Liability for cash received from early exercise of stock | $ 100 | $ 500 | ||
Number of early exercise stock option remain subject to repurchase | 34,384 | 526,660 | ||
Common stock, shares issued | 73,823,161 | 71,854,688 | ||
Unrecognized stock-based compensation expense | $ 19,500 | |||
Cost not yet recognized, period for recognition | 2 years 3 months 18 days | |||
Employee Stock Option | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock reserved for future issuance | 15,829,198 | |||
Common stock, shares issued | 34,384 | |||
Exercise Price | $ 0.46 | $ 3.6 | ||
Cost not yet recognized, period for recognition | 10 months 24 days | |||
Share Based Compensation exercised | $ 31 | $ 1,300 | ||
Employee Stock Option | Minimum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Exercise Price | $ 0.46 | |||
Unrecognized stock-based compensation expense | $ 200 | $ 400 | ||
Employee Stock Option | Maximum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation expense | $ 1,200 | |||
Non Employee Stock Option | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock, shares issued | 984,291 | |||
Non Employee Stock Option | Minimum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Exercise Price | $ 10.99 | |||
Non Employee Stock Option | Maximum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Exercise Price | $ 26.23 | |||
2021 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock reserved for future issuance | 7,500,000 | |||
Stock incentive plan description | The number of shares of common stock reserved for issuance under the 2021 Plan are increased automatically on the first business day of each fiscal year, commencing in 2022 and ending in 2031, by a number equal to the lesser of: (i) 5% of the shares of common stock outstanding on the last business day of the prior fiscal year; or (ii) the number of shares determined by the Company’s Board of Directors. | |||
2021 Plan | Minimum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Purchase Price of Common Stock Expressed As A Percentage | 100% | |||
2016 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock reserved for future issuance | 585,720 | |||
2021 ESPP Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock reserved for future issuance | 730,000 | |||
Share-based payment award, number of shares available for grant | 3,810,957 | |||
Common stock, shares issued | 1,058,431 | |||
Purchase Price of Common Stock Expressed As A Percentage | 85% |
Stock Incentive Plan - Summary
Stock Incentive Plan - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Share-Based Payment Arrangement [Abstract] | |
Number of Options, Outstanding at December 31, 2022 | shares | 9,637,022 |
Number of Options, Exercisable at December 31, 2022 | shares | 4,066,881 |
Number of Options, Granted | shares | 3,167,750 |
Number of Options, Exercised | shares | (23,479) |
Number of Options, Cancelled / Forfeited | shares | (1,029,544) |
Number of Options, Outstanding at December 31, 2023 | shares | 11,751,749 |
Number of Options, Exercisable at December 31, 2023 | shares | 6,045,163 |
Weighted average exercise price (per share), Outstanding at December 31, 2022 | $ / shares | $ 5.35 |
Weighted average exercise price (per share), Exercisable at December 31, 2022 | $ / shares | 4.17 |
Weighted average exercise price (per share), Granted | $ / shares | 1.08 |
Weighted average exercise price (per share), Vested | $ / shares | 0.56 |
Weighted average exercise price (per share), Cancelled / Forfeited | $ / shares | 5.56 |
Weighted average exercise price (per share), Outstanding at December 31, 2023 | $ / shares | 4.19 |
Weighted average exercise price (per share), Exercisable at December 31, 2023 | $ / shares | $ 4.55 |
Weighted average remaining contract term (in years), Outstanding | 8 years |
Weighted average remaining contract term (in years), Exercisable | 7 years 3 months 18 days |
Aggregate intrinsic value Outstanding at December 31,2023 | $ | $ 93 |
Aggregate intrinsic value Exercisable at December 31,2023 | $ | $ 52 |
Stock Incentive Plans - Schedul
Stock Incentive Plans - Schedule of RSU activity during the year (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of Options, Granted | 3,167,750 | |
Number of Options, Exercised | (23,479) | |
Number of Options, Cancelled / Forfeited | (1,029,544) | |
Number of Options, Outstanding at December 31, 2023 | 11,751,749 | 9,637,022 |
Weighted average exercise price (per share), Granted | $ 1.08 | |
Weighted average exercise price (per share), Vested | 0.56 | |
Weighted average exercise price (per share), Cancelled / Forfeited | 5.56 | |
Weighted average exercise price (per share), Outstanding at December 31, 2023 | $ 4.19 | $ 5.35 |
Restricted Stock [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of Options, Granted | 4,743,850 | |
Number of Options, Exercised | (415,528) | |
Number of Options, Cancelled / Forfeited | (250,873) | |
Number of Options, Outstanding at December 31, 2023 | 4,077,449 | |
Weighted average exercise price (per share), Granted | $ 1.13 | |
Weighted average exercise price (per share), Vested | 1.78 | |
Weighted average exercise price (per share), Cancelled / Forfeited | 1.88 | |
Weighted average exercise price (per share), Outstanding at December 31, 2023 | $ 1.02 |
Stock Incentive Plan - Summar_2
Stock Incentive Plan - Summary of Equity Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total equity-based compensation expense | $ 11,404 | $ 13,669 |
Research and Development | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total equity-based compensation expense | 3,748 | 3,970 |
Selling, General and Administrative | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total equity-based compensation expense | $ 7,656 | $ 9,699 |
Stock Incentive Plan - Schedule
Stock Incentive Plan - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected volatility | 72.47% | 57.56% |
Expected dividend yield | 0% | 0% |
Risk-free interest rate | 4.15% | 1.98% |
Minimum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (years) | 5 years 3 months 18 days | 5 years 2 months 12 days |
Maximum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (years) | 6 years 1 month 6 days | 6 years 1 month 6 days |
Stock Incentive Plans - Common
Stock Incentive Plans - Common stock reserved for future issuance (Details) - shares | Dec. 31, 2023 | May 31, 2021 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Common stock reserved for future issuance | 20,180,834 | |
2021 Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Common stock reserved for future issuance | 7,500,000 | |
2021 ESPP Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Common stock reserved for future issuance | 730,000 | |
Stock options and restricted stock units issued and outstanding under all Plans | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Common stock reserved for future issuance | 15,829,198 | |
Authorized for future grants under the 2021 Plan | 2021 Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Common stock reserved for future issuance | 3,810,957 | |
Authorized for future purchases under the ESPP | 2021 ESPP Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Common stock reserved for future issuance | 540,679 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Loss Carryforwards [Line Items] | ||
Income tax benefit or provision | $ 0 | $ 0 |
Tax credit carry forwards | 13,371 | 9,433 |
Net change in valuation allowance | $ 26,800 | 24,600 |
Cumulative change in ownership percentage | 50% | |
Period for cumulative change in ownership | 3 years | |
Income tax interest and penalties accrued | $ 0 | $ 0 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | 195,300 | |
Operating loss carryforward available to offset future taxable income | 191,500 | |
Tax credit carry forwards | 9,400 | |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | $ 188,800 | |
Net operating loss carry forwards, expire period | 2036 | |
Tax credit carry forwards | $ 7,700 | |
Tax credit carry forwards, expire period | 2037 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of the Statutory U.S. Federal Tax Rate to the Effective Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Effective Income Tax Rate Reconciliation: | ||
Income taxes at statutory rates | $ (19,912) | $ (19,085) |
State income tax, net of federal benefit | (4,422) | (2,615) |
Research Credit | (3,945) | (3,434) |
Change in valuation allowance | 26,988 | 24,423 |
Permanent items and other | 1,291 | 711 |
Income tax expense, total | $ 0 | $ 0 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Net operating loss carryforward | $ 54,252 | $ 40,101 |
Credits | 13,371 | 9,433 |
Lease liability | 15,193 | 11,673 |
Section 174 capitalized research and development | 13,765 | 7,408 |
Other | 5,338 | 3,972 |
Total deferred tax assets | 101,919 | 72,587 |
Valuation allowance | (86,196) | (59,435) |
Net deferred tax assets | 15,723 | 13,152 |
Deferred tax liabilities: | ||
Right-of-use lease assets | (13,227) | (10,983) |
Fixed assets | (2,496) | (2,169) |
Total deferred tax liabilities | (15,723) | (13,152) |
Total net deferred taxes | $ 0 | $ 0 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Unrecognized Tax Benefit Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits, beginning balance | $ 1,237 | $ 866 |
Increases (decreases) related to prior year tax positions | 50 | (50) |
Increases related to current year tax positions | 936 | 421 |
Unrecognized tax benefits, ending balance | $ 2,223 | $ 1,237 |
Net Loss Per Share - Schedule O
Net Loss Per Share - Schedule Of Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Net Income (Loss) | $ (94,820) | $ (90,879) |
Net Loss Per Share - Schedule_2
Net Loss Per Share - Schedule of Antidilutive Securities Excluded From Computation of Dilutied Net Loss Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive Securities Excluded From Computation Of Earnings Per Share Amount | 18,363,582 | 12,663,682 |
Employee stock options issued and outstanding | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive Securities Excluded From Computation Of Earnings Per Share Amount | 15,829,198 | 9,637,022 |
Convertible Preferred Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive Securities Excluded From Computation Of Earnings Per Share Amount | 2,500,000 | 2,500,000 |
Common stock subject to the Company's repurchase right | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive Securities Excluded From Computation Of Earnings Per Share Amount | 34,384 | 526,660 |
Subsequent Events (Additional I
Subsequent Events (Additional Information) (Details) | Mar. 14, 2024 |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Workforce reduction | 20% |