false 0001850902 0001850902 2021-11-10 2021-11-10





Washington, D.C. 20549







Pursuant to Section 13 OR 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 10, 2021




(Exact name of registrant as specified in its charter)




Delaware   001-40538   94-3368109

(State or other jurisdiction

of incorporation)



File Number)


(IRS Employer

Identification No.)

2290 Bert Drive

Hollister, CA 95023

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (831) 637-1100


(Former name, or former address, if changed since last report)



Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities Registered pursuant to Section 12(b) of the Act:


Title of each class





Name of each exchange

on which registered

Common Stock, par value $0.00001 per share   TKNO   The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  




Item 2.02.

Results of Operations and Financial Condition.

On November 10, 2021, Alpha Teknova, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2021 (the “Press Release”). A copy of the Press Release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. The information in this Item 2.02, including the Press Release, is intended to be furnished under Item 2.02 and Item 9.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.


Item 9.01.

Financial Statements and Exhibits.

(d) Exhibits.





99.1    Press Release issued by Alpha Teknova, Inc., dated November 10, 2021
104    Cover Page Interactive Data File (embedded within the Inline XBRL document)


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


Date: November 10, 2021     By:  

/s/ Stephen Gunstream

      Stephen Gunstream
      President and Chief Executive Officer

Exhibit 99.1



Teknova Reports Third Quarter 2021 Financial Results

$9.4 million in total revenue, up 5% year-over-year

Excluding Sample Transport, total revenue was $9.3 million, up 26% year-over-year

Strong cash position of $98.0 million supports investment in long-term growth strategy

HOLLISTER, Calif., November 10, 2021 – Alpha Teknova, Inc. (“Teknova”) (Nasdaq: TKNO), a leading provider of critical reagents for the development and production of biopharmaceutical products, including drug therapies, novel vaccines, and molecular diagnostics, today announced financial results for the third quarter ended September 30, 2021.

“Teknova performed very well during the third quarter of 2021. We met robust customer demand for our Lab Essentials and Clinical Solutions products and made meaningful progress in advancing our strategic priorities, including investing in our manufacturing capacity and successfully recruiting priority leadership hires,” said Stephen Gunstream, President and CEO of Teknova. “We remain focused on both near-term execution and the laying of the foundation for our long-term growth opportunities.”

Corporate and Financial Updates



Achieved third quarter 2021 revenue of $9.4 million, up 5% as compared to $9.0 million in the third quarter 2020 and up 26% as compared to $7.4 million in the third quarter 2020, when Sample Transport is excluded



Invested in manufacturing capacity expansion in existing facilities and construction of a new, state-of-the art GMP manufacturing facility in Hollister, California, including new hires with process development and automation expertise



Expanded the Company’s leadership team in November by appointing two key commercial roles, Ken Gelhaus as Chief Commercial Officer and Jennifer Henry as SVP, Marketing

Revenue for the Third Quarter and Year-to-Date


$000s    Three months ended
September 30, 2021
    Nine months ended
September 30, 2021
Unaudited    2021      2020      Inc/Dec     2021      2020      Inc/Dec  

Lab Essentials

     7,195        5,815        24     20,440        15,494        32

Clinical Solutions

     1,690        1,354        25     4,354        3,141        39

Sample Transport

     73        1,593        (95 %)      1,035        1,767        (41 %) 


     434        222        95     954        738        29



















Total Revenue

     9,392        8,984        5     26,783        21,140        27




Third Quarter 2021 Financial Highlights

Total revenues for the third quarter 2021 were $9.4 million, a 5% increase from $9.0 million in the third quarter 2020. Excluding Sample Transport, revenues for the third quarter 2021 were $9.3 million, a 26% increase from $7.4 million in the third quarter 2020.

Gross profit for the third quarter 2021 was $4.3 million, compared to $5.1 million in the third quarter 2020. Gross margin for the third quarter 2021 was 45.4% of revenue, compared to 56.6% of revenue in the third quarter 2020. The Company continued to make investments in manufacturing capacity and related infrastructure in anticipation of increases in future demand, which negatively impacted gross margins in 2021.

Operating expenses for the third quarter 2021 were $8.2 million, compared to $2.9 million in the third quarter 2020. The increase was driven by new hires in the research and development, sales and marketing, and general and administrative functions needed to support new product development efforts, develop commercial presence and improve customer support, and to build the infrastructure necessary to support the Company’s growth strategy.

Net loss attributable to common stockholders for the third quarter 2021 was $3.3 million, or $0.12 per share, compared to net income attributable to common stockholders of $0.3 million, or $0.07 per share, for the third quarter 2020.

Adjusted EBITDA for the third quarter 2021 was negative $2.7 million, compared to positive $2.7 million for the third quarter 2020. Adjusted Free Cash Flow was negative $6.6 million in the third quarter 2021, compared to positive $1.7 million the third quarter 2020, reflecting continued capital investment in manufacturing operations.

As of September 30, 2021, the Company had $98.0 million in cash and cash equivalents.

Conference Call and Webcast

Teknova will host a webcast and conference call today, Wednesday, November 10, 2021, beginning at 4:30 p.m. ET. Participants may access the live webcast on the Investor Relations section of the Teknova website, https://www.teknova.com, and at this link: https://edge.media-server.com/mmc/p/vjhnni3v. The conference call can be accessed by dialing 877-312-1451 for domestic callers and 470-495-9521 for international callers. The conference ID number is 5889934. A replay will be available for 30 days on the Investor Relations section of the Teknova website.



About Teknova

Teknova is expediting clinical breakthroughs in the life sciences by providing custom products and reagents for bioprocessing, bioproduction, and molecular diagnostics. With a focus on agility and customization, Teknova delivers research-grade and GMP products, including cell culture media and supplements, protein and nucleic acid purification buffers, and molecular biology reagents for a multitude of established and emerging applications, including cell and gene therapy, mRNA therapeutics, genomics, and synthetic biology. Teknova’s proprietary processes enable the manufacture and delivery of high quality, custom, made-to-order products on short turnaround times and at scale across all stages of development, including commercialization.

Non-GAAP Financial Measures

This press release contains financial measures that have not been calculated in accordance with U.S. generally accepted accounting principles (GAAP). Teknova uses the following non-GAAP financial measures in assessing the performance of our business and the effectiveness of our business strategies: (a) Adjusted EBITDA and (b) Adjusted Free Cash Flow.

Teknova defines Adjusted EBITDA as net income (loss) adjusted for interest expense, provision for income taxes, depreciation expense, amortization of intangible assets, and stock-based compensation expense. Adjusted EBITDA reflects further adjustments to eliminate the impact of certain items, including certain non-cash and other items that we do not consider representative of our ongoing operating performance.

Teknova defines Adjusted Free Cash Flow as Adjusted EBITDA less capital expenditures.

Teknova presents Adjusted EBITDA and Adjusted Free Cash Flow in this press release because Teknova believes analysts, investors, and other interested parties frequently use these measures to evaluate companies in our industry and that such measures facilitate comparisons on a consistent basis across reporting periods. Further, Teknova believes such measures are helpful in highlighting trends in our operating results because they exclude items that are not indicative of our core operating performance.

Adjusted EBITDA and Adjusted Free Cash Flow have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Teknova may in the future incur expenses similar to the adjustments in the presentation of Adjusted EBITDA. In particular, Teknova expects to incur meaningful share-based compensation expense in the future. Other limitations include the following, which Adjusted EBITDA and Adjusted Free Cash Flow do not reflect:



all expenditures or future requirements for capital expenditures or contractual commitments;



changes in our working capital needs;



provision for income taxes, which may be a necessary element of our costs and ability to operate;



the costs of replacing the assets being depreciated, which will often have to be replaced in the future;



the non-cash component of employee compensation expense; and



the impact of earnings or charges resulting from matters we consider not to be reflective, on a recurring basis, of our ongoing operations.



In addition, Adjusted EBITDA and Adjusted Free Cash Flow may not be comparable to similarly titled measures used by other companies in our industry or across different industries.

A full reconciliation of these non-GAAP measures to the most comparable GAAP measures is included at the end of this release.

Forward-Looking Statements

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements.” These statements include, but are not limited to, statements relating to our long-term growth strategy, demand for our products, expansion of our production capacity and commercial and R&D capabilities. The words, without limitation, “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these or similar identifying words. These forward-looking statements are based on management’s current expectations and beliefs and are subject to uncertainties and factors, all of which are difficult to predict and many of which are beyond our control and could cause actual results to differ materially and adversely from those described in the forward-looking statements. These risks include, but are not limited to, those related to our cash flows and revenue growth rate; our supply chain, sourcing, manufacturing and warehousing; inventory management; risks related to global economic and marketplace uncertainties related to the impact of the COVID-19 pandemic; reliance on a limited number of customers for a high percentage of our revenue; acquisitions of other companies and other factors discussed in the “Risk Factors” section of our most recent periodic reports filed with the Securities and Exchange Commission (“SEC”), including in our final prospectus filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended, on June 25, 2021, all of which you may obtain for free on the SEC’s website at www.sec.gov. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we do not know whether our expectations will prove correct. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, even if subsequently made available by us on our website or otherwise. We do not undertake any obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Investor Contacts

Matt Lowell

Chief Financial Officer


+1 831-216-1830

Sara Michelmore

MacDougall Advisors


+1 781-235-3060

Media Contact

Matthew Corcoran

MacDougall Advisors


+1 617-866-7350




Condensed Balance Sheets


(In thousands)


     As of
September 30,
    As of
December 31,



Current assets:


Cash and cash equivalents

   $ 98,013     $ 3,315  

Short-term investments – marketable securities

     —         1,811  

Accounts receivable, net

     4,558       4,623  

Inventories, net

     4,403       3,582  

Income taxes receivable

     1,191       1,417  

Prepaid expenses and other current assets

     2,914       1,666  







Total current assets

     111,079       16,414  

Property, plant and equipment, net

     22,451       10,008  


     16,613       16,613  

Intangible assets, net

     18,991       19,852  

Other non-current assets

     29       24  







Total assets

   $ 169,163     $ 62,911  









Current liabilities:


Accounts payable

   $ 3,321     $ 1,635  

Accrued liabilities

     2,883       2,327  







Total current liabilities

     6,204       3,962  

Deferred tax liabilities

     4,350       5,990  

Other accrued liabilities

     293       350  

Long-term debt

     11,826       —    

Deferred rent

     264       204  







Total liabilities

     22,937       10,506  







Convertible and redeemable preferred stock

     —         35,638  

Stockholders’ equity:


Common stock

     —         —    

Additional paid-in capital

     150,117       14,495  

(Accumulated deficit) retained earnings

     (3,891     2,265  

Accumulated other comprehensive income

     —         7  







Total stockholders’ equity

     146,226       16,767  







Total liabilities, convertible and redeemable preferred stock and stockholders’ equity

   $ 169,163     $ 62,911  










Condensed Statements of Operations


(In thousands, except share and per share data)


     For the Three Months
Ended September 30,
    For the Nine Months
Ended September 30,
     2021     2020     2021     2020  


   $ 9,392     $ 8,984     $ 26,783     $ 21,140  

Cost of sales

     5,129       3,896       14,141       8,954  













Gross profit

     4,263       5,088       12,642       12,186  

Operating expenses:


Research and development

     1,372       358       2,922       1,025  

Sales and marketing

     885       558       2,494       1,389  

General and administrative

     5,607       1,733       13,606       5,043  

Amortization of intangible assets

     287       287       861       861  













Total operating expenses

     8,151       2,936       19,883       8,318  













(Loss) income from operations

     (3,888     2,152       (7,241     3,868  

Other income (expenses), net


Interest income (expense), net

     (255     19       (553     74  

Other expense, net

     —         (2     (2     (27













Total other income (expenses), net

     (255     17       (555     47  













(Loss) income before income taxes

     (4,143     2,169       (7,796     3,915  

(Benefit from) provision for income taxes

     (892     636       (1,640     922  













Net (loss) income

     (3,251     1,533       (6,156     2,993  













Less: undistributed income attributable to preferred stockholders

     —         (1,271     —         (2,482













Net (loss) income attributable to common stockholders

   $ (3,251   $ 262     $ (6,156   $ 511  













Net (loss) income per share attributable to common stockholders



   $ (0.12   $ 0.07     $ (0.51   $ 0.14  


   $ (0.12   $ 0.07     $ (0.51   $ 0.14  

Weighted average shares used in computing net (loss) income per share attributable to common stockholders



     28,011,917       3,599,232       12,069,214       3,599,232  


     28,011,917       3,647,675       12,069,214       3,632,321  




Condensed Statements of Cash Flows


(In thousands)


     Nine months ended September 30,  
     2021     2020  

Operating activities:


Net (loss) income

   $ (6,156   $ 2,993  

Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:


Bad debt expense

     235       (5

Depreciation and amortization

     2,100       1,473  

Stock-based compensation

     927       31  

Inventory reserve

     676       10  

Deferred taxes

     (1,640     1,901  

Amortization of debt issuance costs

     89       —    

Loss on disposal of property, plant and equipment

     4       11  


     (10     34  

Changes in operating assets and liabilities:


Accounts receivable

     (170     (2,471


     (1,497     (360

Prepaid expenses and other assets

     (1,569     (1,923

Accounts payable, accrued liabilities, and other current and non-current liabilities

     964       (1,650

Deferred rent

     60       27  







Cash (used in) provided by operating activities

     (5,987     71  







Investing activities:


Purchase of property, plant and equipment

     (12,465     (1,969

Proceeds from loan to related party

     529       20  

Purchase of short-term marketable securities

     —         (1,775

Proceeds from sales of short-term marketable securities

     1,132       1,747  

Proceeds from maturities of short-term marketable securities

     695       2,900  







Cash (used in) provided by investing activities

     (10,109     923  







Financing activities:


Proceeds from long-term debt, net

     11,890       —    

Debt issuance costs

     (153     —    

Repayment of long-term debt

     —         (45

Indemnity holdback release

     —         (1,554

Payment of issuance costs for initial public offering

     (3,615     —    

Proceeds from initial public offering, net of underwriters’ commissions and discounts

     102,672       —    







Cash provided by (used in) financing activities

     110,794       (1,599







Change in cash and cash equivalents

     94,698       (605

Cash and cash equivalents at beginning of period

     3,315       4,144  







Cash and cash equivalents at end of period

   $ 98,013     $ 3,539  










Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures


(In thousands)


     For the Three Months
Ended September 30,
    For the Nine Months
Ended September 30,
     2021     2020     2021     2020  

Net (loss) income – as reported

   $ (3,251   $ 1,533     $ (6,156   $ 2,993  

Add back:


Interest (expense) income, net

     (255     19       (553     74  

(Benefit from) provision for income taxes

     (892     636       (1,640     922  

Depreciation expense

     461       254       1,239       612  

Amortization of intangible assets

     287       287       861       861  














   $ (3,140   $ 2,691     $ (5,143   $ 5,314  













Other and one-time expenses:


Stock-based compensation expense

     442       31       927       31  













Adjusted EBITDA

   $ (2,698   $ 2,722     $ (4,216   $ 5,345  













Less: capital expenditures

     (3,907     (1,016     (12,465     (1,969













Adjusted Free Cash Flow

   $ (6,605   $ 1,706     $ (16,681   $ 3,376  













Add back: capital expenditures

     3,907       1,016       12,465       1,969  

Less: total other and one time expenses

     (442     (31     (927     (31

Less: total interest, taxes, depreciation and amortization Expenses

     (111     (1,158     (1,013     (2,321













Net (loss) income – as reported

   $ (3,251   $ 1,533     $ (6,156   $ 2,993  













Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities, net

     321       1,101       2,381       3,455  

Changes in operating assets and liabilities, net

     (1,907     (4,259     (2,212     (6,377













Cash (used in) provided by operating activities

   $ (4,837   $ (1,625   $ (5,987   $ 71