0000950170-22-004176 | 10-K | XBRL Viewer

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Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Statement [Abstract]
Revenue	$ 36,893	$ 31,297
Cost of sales	19,272	13,542
Gross profit	17,621	17,755
Operating expenses:
Research and development	4,312	1,507
Sales and marketing	3,777	2,229
General and administrative	20,392	8,208
Amortization of intangible assets	1,148	1,148
Total operating expenses	29,629	13,092
Income (loss) from operations	(12,008)	4,663
Other income (expenses), net
Interest income (expense), net	(589)	87
Other expense, net	(40)	(24)
Total other income (expenses), net	(629)	63
Income (loss) before income taxes	(12,637)	4,726
Provision for (benefit from) income taxes	(2,834)	1,156
Net income (loss)	(9,803)	3,570
Change in unrealized loss on available-for-sale securities, net of tax	(7)	(13)
Comprehensive income (loss)	(9,810)	3,557
Net income (loss) available to common stockholders
Net income (loss)	(9,803)	3,570
Less: undistributed income attributable to preferred stockholders	0	(2,962)
Net income (loss) attributable to common stockholders	$ (9,803)	$ 608
Net income (loss) per share attributable to common stockholders
Basic	$ (0.61)	$ 0.17
Diluted	$ (0.61)	$ 0.16
Weighted average shares used in computing net income (loss) per share attributable to common stockholders
Basic	16,087,653	3,599,232
Diluted	16,087,653	3,800,636

Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 87,518	$ 3,315
Short-term investments - marketable securities	0	1,811
Accounts receivable, net of allowance for doubtful accounts of $23 thousand and $23 thousand	4,666	4,623
Inventories, net	5,394	3,582
Income Tax Receivable	1,188	1,417
Prepaid expenses and other current assets	2,438	1,666
Total current assets	101,204	16,414
Property, plant and equipment, net	29,810	10,008
Goodwill	16,613	16,613
Intangible assets, net	18,704	19,852
Other non-current assets	180	24
Total assets	166,511	62,911
Current liabilities:
Accounts payable	2,248	1,635
Accrued liabilities	5,495	2,327
Total current liabilities	7,743	3,962
Deferred tax liabilities	3,153	5,990
Other accrued liabilities	273	350
Long-term debt	11,870	0
Deferred rent	269	204
Total liabilities	23,308	10,506
Commitments and contingencies (See “Note 15—Commitments and Contingencies”)
Stockholders’ equity:
Preferred stock, $0.00001 par value, 10,000,000 and zero shares authorized at December 31, 2021 and December 31, 2020, respectively, zero shares issued and outstanding at December 31, 2021 and December 31, 2020	0	0
Common stock, $0.00001 par value, 490,000,000 and 30,000,000 shares authorized at December 31, 2021 and December 31, 2020, respectively, 28,011,917 and 3,599,232 shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively	0	0
Additional paid-in capital	150,741	14,495
Retained earnings (accumulated deficit)	(7,538)	2,265
Accumulated other comprehensive income	0	7
Total stockholders’ equity	143,203	16,767
Total liabilities, convertible and redeemable preferred stock and stockholders’ equity	166,511	62,911
Convertible Series A Preferred Stock [Member]
Current liabilities:
Series A convertible and redeemable preferred stock, $0.00001 par value, zero and 9,600,000 shares authorized as of December 31, 2021 and December 31, 2020, respectively; zero and 9,342,092 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively; aggregate liquidation preference of $0 and $41,586 thousand as of December 31, 2021 and December 31, 2020, respectively.	$ 0	$ 35,638

Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Allowance for doubtful accounts	$ 23	$ 23
Preferred stock, par value	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	10,000,000	0
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.00001	$ 0.00001
Common stock, shares authorized	490,000,000	30,000,000
Common stock, shares issued	28,012,017	3,599,232
Common stock, shares outstanding	28,012,017	3,599,232
Convertible Series A Preferred Stock [Member]
Preferred stock, par value	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	0	9,600,000
Preferred stock, shares issued	0	9,342,092
Preferred stock, shares outstanding	0	9,342,092
Preferred stock, liquidation preference, value	$ 0	$ 41,586

Statements of Convertible and Redeemable Preferred Stock and Stockholders' Equity - USD ($) $ in Thousands	Total	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings (Accumulated Deficit) [Member]
Beginning Balance at Dec. 31, 2019	$ 12,910	$ 35,638	$ 0	$ 14,195	$ 20	$ (1,305)
Beginning Balance (in shares) at Dec. 31, 2019		9,342,092	3,599,232
Stock-based compensation	300			300
Unrealized loss on available-for-sale securities	(13)				(13)
Net income (loss)	3,570					3,570
Ending Balance at Dec. 31, 2020	$ 16,767	$ 35,638	$ 0	14,495	7	2,265
Ending Balance (in shares) at Dec. 31, 2020	3,599,232	9,342,092	3,599,232
Stock-based compensation	$ 1,551			1,551
Unrealized loss on available-for-sale securities	(7)				(7)
Accretion of convertible and redeemable preferred stock to redemption value	(300)	$ 300		(300)
Conversion of convertible and redeemable preferred stock	35,938	$ (35,938)	$ 0	35,938	0	0
Conversion of convertible and redeemable preferred stock (in shares)		(9,342,092)	17,512,685
Issuance of common stock upon initial public offering, net of issuance costs and underwriting discounts	99,057	$ 0	$ 0	99,057	0	0
Issuance of common stock upon initial public offering, net of issuance costs and underwriting discounts (in shares)		0	6,900,000
Issuance of stock under employee stock plans, net, Shares			100
Net income (loss)	(9,803)					(9,803)
Ending Balance at Dec. 31, 2021	$ 143,203		$ 0	$ 150,741	$ 0	$ (7,538)
Ending Balance (in shares) at Dec. 31, 2021	28,012,017	0	28,012,017

Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
Statements of Cash Flows - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Operating activities:
Net income (loss)	$ (9,803)	$ 3,570
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Bad debt expense	235	(12)
Depreciation and amortization	2,883	2,044
Stock-based compensation	1,551	300
Inventory reserve	441	(29)
Deferred taxes	(2,837)	2,090
Amortization of debt issuance costs	134	0
Loss on disposal of property, plant and equipment	41	11
Other	(10)	37
Changes in operating assets and liabilities:
Accounts receivable	(278)	(2,352)
Inventories	(2,253)	(987)
Income taxes receivable	229	(1,241)
Prepaid expenses and other current assets	(1,301)	(949)
Accounts payable	270	867
Accrued liabilities	1,810	(886)
Other	(181)	42
Cash provided by (used in) operating activities	(9,069)	2,505
Investing activities:
Purchase of property, plant and equipment	(19,877)	(5,466)
Proceeds from loan to related party	529	27
Purchase of short-term marketable securities	0	(1,763)
Proceeds on sales of short-term marketable securities	1,132	1,747
Proceeds from maturities of short-term marketable securities	695	3,720
Cash provided by (used in) investing activities	(17,521)	(1,735)
Financing activities:
Repayment of long-term debt	0	(45)
Indemnity holdback release	0	(1,554)
Proceeds from Long-term Debt, Net	11,889	0
Debt issuance costs	(153)	0
Payments for Repurchase of Initial Public Offering	(3,615)	0
Proceeds from initial public offering, net of underwriters' commissions and discounts	102,672	0
Cash provided by (used in) financing activities	110,793	(1,599)
Change in cash and cash equivalents	84,203	(829)
Cash and cash equivalents at beginning of period	3,315	4,144
Cash and cash equivalents at end of period	87,518	3,315
Supplemental cash flow disclosures:
Income taxes paid	8	323
Interest paid, net of amounts capitalized	414	36
Capitalized Property, Plant And Equipment Included In Accounts Payable And Accrued Liabilities	2,088	387
Conversion of convertible and redeemable preferred stock into common stock	35,638	0
Accretion of convertible and redeemable preferred stock to redemption value	$ 300	$ 0

Nature of the Business

12 Months Ended

Dec. 31, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Nature of Operations

Note 1. Nature of the Business

Alpha Teknova, Inc. (referred to herein as the Company or Teknova), provides critical reagents that enable the discovery, development, and production of biopharmaceutical products such as drug therapies, novel vaccines, and molecular diagnostics. Product offerings include pre-poured media plates for cell growth and cloning, liquid cell culture media and supplements for cellular expansion, and molecular biology reagents for sample manipulation, resuspension, and purification. Teknova supports customers spanning the life sciences market, including pharmaceutical and biotechnology companies, contract development and manufacturing organizations, in vitro diagnostic franchises, and academic and government research institutions, with catalog and custom, made-to-order products.

Teknova manufactures its products at its Hollister, California headquarters and stocks inventory of raw materials, components, and finished goods at that location. The Company ships products directly from its warehouses in Hollister, California and Mansfield, Massachusetts.

Teknova manufactures its products under Research Use Only or Good Manufacturing Processes regulatory standards, the latter of which refers to a more stringent level of quality standards supported by additional levels of documentation, testing, and traceability. In 2017, Teknova achieved ISO 13485:2016 certification, enabling the Company to manufacture products for use in diagnostic and therapeutic applications.

Stock Split

In June 2021, the Company’s board of directors and stockholders, respectively, approved a 1.8746 for-one forward stock split of the Company’s issued and outstanding shares of common stock, including the shares of common stock underlying outstanding stock options. This stock split was effected on June 17, 2021. The par value of the Company’s common stock was not adjusted as a result of the stock split. All issued and outstanding share and per share amounts of the Company’s common stock and stock options included in the accompanying financial statements have been retroactively adjusted to reflect this stock split for all periods presented.

Initial Public Offering

On June 29, 2021, the Company completed its initial public offering (IPO) in which the Company issued and sold 6,900,000 shares of its common stock, including shares issued upon the exercise in full of the underwriters’ option to purchase 900,000 additional shares of its common stock, at a public offering price of $16.00 per share. The Company received $99.1 million in net proceeds, after deducting underwriting discounts and commissions of $7.7 million and offering expenses of $3.6 million.

On June 28, 2021, all outstanding shares of convertible and redeemable preferred stock were converted into 17,512,685 shares of the Company’s common stock. Prior to the conversion of preferred stock to the Company’s common stock, total accretion of $0.3 million related to costs associated with the issuance of the convertible and redeemable preferred stock was recognized as an increase to the carrying value from $35.6 million to $35.9 million. Subsequent to the closing of the IPO, there were no shares of convertible and redeemable preferred stock outstanding.

Prior to the IPO, deferred offering costs, which consist primarily of direct incremental legal, accounting, and consulting fees relating to the Company’s IPO, were capitalized within prepaid expenses and other current assets in the balance sheets. Upon the closing of the IPO, these costs were reclassified into additional paid-in capital, as an offset against IPO proceeds. As of December 31, 2021, $3.6 million of these IPO-related costs were included as a reduction to additional paid-in capital on the balance sheet. There were no material deferred offering costs recorded as of December 31, 2020.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2. Summary of Significant Accounting Policies

Basis of Accounting, Presentation and Use of Estimates

The accompanying financial statements and related notes are prepared in accordance with U.S. generally accepted accounting principles (GAAP). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain amounts of assets and liabilities, and disclosures of assets and liabilities, at the date of each financial statement, and the reported amount of revenues and expenses during the reporting period. Significant items that are subject to such estimates and assumptions include, but are not limited to, the valuation of share-based payment awards, goodwill and intangible assets, and income taxes. Although management bases its estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, actual results could differ significantly from the estimates under different assumptions or conditions. Certain prior period amounts have been reclassified to conform to presentation for the current year.

Impact of COVID-19

The COVID-19 pandemic continues to impact worldwide economic activity. Teknova continues to closely monitor the impact of the COVID-19 pandemic on all aspects of the Company's business, including how the pandemic will impact customers, employees, suppliers, vendors, business partners and distribution channels. It is not possible to predict the total impact of the COVID-19 pandemic on the Company’s future revenue or profitability, which will depend on future developments that remain uncertain and cannot be predicted with confidence at this time.

Segment Reporting

Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (CODM) in deciding how to allocate resources to an individual segment and in assessing performance. Teknova’s CODM is its Chief Executive Officer, currently Stephen Gunstream. Teknova has determined that it operates in one reporting unit, one operating segment and one reportable segment, as the CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance.

Concentrations of Risk

Financial Instruments

Teknova’s financial instruments that are exposed to concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents with high quality banking institutions. At times, the Company’s cash and cash equivalent balances may exceed the Federal Deposit Insurance Corporation (FDIC) insurance limit. Teknova has never experienced any losses related to its cash and cash equivalent balances. Teknova routinely communicates with its customers regarding payments and has a history of limited write-offs so, as a consequence, the Company believes that its accounts receivable credit risk exposure is limited.

Customers

For the year ended December 31, 2021, the Company's largest customer was a distributor that accounted for 18% of total revenue. No other customer accounted for more than 10% of total revenue for the year ended December 31, 2021. As of December 31, 2021, the Company's two largest customers, both distributors, made up 16% and 10% of total gross accounts receivable and one direct customer made up 12% of total gross accounts receivable. No other customer accounted for more than 10% of total gross accounts receivable at December, 31, 2021.

For the year ended December 31, 2020, the Company's largest customer was a distributor that accounted for 15% of total revenue and the second largest customer accounted for 10% of total revenue. No other customer accounted for more than 10% of total revenue for the year ended December 31, 2020. As of December 31, 2020, two direct customers made up 18% and 16% of total gross accounts receivable and the Company's largest distributors

each made up 10% of total gross accounts receivable. No other customer accounted for more than 10% of total gross accounts receivable at December 31, 2020.

Suppliers

For the year ended December 31, 2021, the Company had three suppliers that accounted for greater than 10% of total inventory purchases, the highest of which accounted for 40% of total inventory purchases followed by suppliers which accounted for 11% and 10% of total inventory purchases, respectively. The amounts due to the Company's largest supplier comprised approximately 20% of total accounts payable as of December 31, 2021. No other supplier accounted for more than 10% of total accounts payable at December 31, 2021.

For the year ended December 31, 2020, the Company had four suppliers that accounted for greater than 10% of total inventory purchases, the highest of which accounted for 29% of total inventory purchases followed by suppliers which accounted for 25%, 21% and 11% of total inventory purchases, respectively. The amounts due to the Company's largest supplier comprised approximately 14% of total accounts payable as of December 31, 2020. No other supplier accounted for more than 10% of total accounts payable at December 31, 2020.

Cash and Cash Equivalents

Teknova’s cash and cash equivalents include cash on hand, cash held in banks, and highly-liquid investments with maturities of three months or less at the date of acquisition. Teknova maintains its cash in bank deposit accounts in financial institutions that are insured by the FDIC up to a balance of $250.0 thousand. Cash equivalents are stated at carrying value, which approximates fair value.

Marketable Investments

Teknova’s short-term marketable investments consist of corporate debt securities, U.S. treasury bills, and government agency obligations. Teknova believes its short-term debt securities are available for use in its current operations and that the Company has the ability, if necessary, to liquidate any of its short-term debt securities to meet its liquidity needs in the next twelve months. Accordingly, those investments with contractual maturities greater than one-year from the date of purchase are classified as short-term investments on the accompanying balance sheets. Teknova classifies its short-term debt investments as available-for-sale at the time of purchase and evaluates such classification as of each balance sheet date. All short-term debt investments are recorded at estimated fair value. Unrealized gains and losses are reported as a component of other comprehensive income, net of any related tax effect. Unrealized losses are charged against income when a decline in the fair value of an individual security is determined to be other-than-temporary. Realized gains and losses and other-than-temporary impairments on investments are included in interest income (expense), net in the statements of operations and comprehensive income (loss).

Fair Value of Financial Instruments

The carrying amounts of certain of Teknova’s financial instruments, including cash equivalents, accounts receivable, inventories, accounts payable and accrued liabilities, approximate fair value due to their relatively short maturities.

Accounts Receivable

Accounts receivable are stated at invoice value, less estimated allowances for doubtful accounts. Teknova uses the allowance method to account for uncollectible accounts receivable, calculated by management using the historical average of uncollectible accounts. The Company continually monitors its customer payments and maintains an allowance for estimated losses resulting from its customers’ inability to make required payments. Accounts receivable are considered past due once customer payment terms have been exceeded. Receivables are

written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received.

Inventories

Inventory, consisting of raw materials, work in process and finished goods, is stated at the lower of cost or net realizable value, on a first-in, first-out basis. Teknova writes down its inventory for estimated obsolescence or inventory in excess of reasonably expected near-term sales or unmarketable inventory, in an amount equal to the difference between the cost of inventory and the estimated net realizable value, based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by Teknova, additional inventory write-downs may be required. Inventory impairment charges establish a new cost basis for inventory, and charges are not reversed subsequently to income, even if circumstances later suggest that increased carrying amounts are recoverable.

Notes Receivable from Related Parties

In 2016, Teknova’s founder and former Chief Executive Officer, a current director and stockholder of the Company, executed a promissory note in favor of the Company which was recorded as a note receivable. Teknova recognizes interest income on notes receivable on the accrual method. Teknova evaluates the collectability of both interest and principal on its notes receivable to determine whether the notes receivable are impaired. A note is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due, according to the existing contractual terms. When a note is considered to be impaired, the amount of loss is calculated by comparing the recorded investment to the fair value of the underlying collateral, less costs to sell. During the years ended December 31, 2021 and 2020, there was no significant uncertainty of collection; therefore, interest income was recognized. As of December 31, 2020, the Company determined that no allowance for collectability was necessary. The note receivable was repaid during the year ended December 31, 2021 and prior to the closing of the IPO. See “Note 14—Related Parties” for further information regarding the Company’s note receivable with its founder and former Chief Executive Officer, a current director and stockholder of the Company.

Capitalized Software Implementation Costs

Teknova capitalizes certain implementation costs incurred under a cloud computing hosting arrangement. Costs incurred during the application development stage related to the implementation of the hosting arrangement are capitalized and included within other assets on the accompanying balance sheets. Amortization of capitalized implementation costs is recognized on a straight-line basis over the expected term of the associated hosting arrangement when it is ready for its intended use. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. As of December 31, 2021, Teknova had capitalized software implementation costs of $0.1 million. Teknova did not have any capitalized implementation software costs as of December 31, 2020. No amortization expense related to capitalized implementation costs has been recorded as the underlying implementation activities were not complete.

Property, Plant and Equipment

Teknova records property, plant and equipment at fair value when it is acquired in a business combination or at cost for all other purchases of property, plant and equipment. Property, plant and equipment is depreciated over the estimated useful lives of the assets, using the straight-line method. Any leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful life of the asset or the estimated remaining life of the lease. Costs for repairs and maintenance that do not significantly increase the value or estimated lives of property, plant and equipment are expensed as incurred. Upon retirement or sale, the cost and related accumulated

depreciation are removed from the balance sheets, and the resulting gain or loss is reflected in the statements of operations and comprehensive income (loss).

The estimated useful lives of the major classes of property and equipment are as follows:


		Estimated Useful Lives
Machinery and equipment		7 years
Office furniture and equipment		3 –7 years
Vehicles		5 years
Leasehold improvements		4 –7 years

Impairment of Long-Lived Assets

Teknova evaluates its long-lived assets for impairment when events or changes in circumstances indicate a possible inability to recover carrying amounts. Recoverability is assessed by comparing the carrying value of the assets to estimated undiscounted future cash flows expected to be generated by the assets. Impairment losses are recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated during the life of those assets are less than the assets’ carrying amounts. If an asset is impaired, the loss is measured as the amount by which the asset’s carrying value exceeds its fair value. There were no indicators of impairment during the years ended December 31, 2021 and 2020.

Goodwill

Goodwill is the excess of the Company’s fair value over the Company’s fair value accounting basis of the Company’s net assets and liabilities. Goodwill is not amortized, but is tested for impairment annually as of October 1, or more frequently if events or circumstances indicate that the carrying value may no longer be recoverable and that an impairment may have occurred.

Teknova first considers qualitative factors that indicate whether impairment may have occurred. Such indicators may include, macro-economic conditions, such as adverse industry or market conditions and entity-specific events, such as increasing costs, declining financial performance, or loss of key personnel. If the Company’s assessment of such qualitative factors indicates that a reduction in the carrying value is more likely than not to have occurred, Teknova performs a quantitative assessment, comparing the fair value of the Company (in this capacity, the Reporting Unit) to the carrying value, including goodwill, of the Reporting Unit. If the carrying value of the Reporting Unit exceeds its fair value, an impairment has occurred, and an impairment charge is recognized for the difference up to the carrying value of the Reporting Unit’s goodwill. The fair value of the Reporting Unit is a Level 3 measure and is determined using a market and income approach. There was no impairment of goodwill during the years ended December 31, 2021 and 2020.

Intangible Assets

Teknova’s intangible assets consist of the Teknova trade name and customer relationships.

Indefinite-lived intangible assets are not amortized but are tested for impairment at least annually as of October 1, or more frequently if events or circumstances indicate that it is more likely than not that an asset is impaired. If the fair value of the asset is less than its carrying amount, an impairment charge would be recognized in an amount equal to the difference between the carrying amount and the fair value.

Finite-lived intangible assets are amortized over the estimated economic useful lives of the assets, which is the period during which expected cash flows support the fair value of such intangible assets. Teknova reviews finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets or an asset group may not be recoverable. When such an event occurs, management determines whether there has been impairment by comparing the anticipated undiscounted future net cash flows to the related assets’ or asset group’s carrying value.

There was no impairment of intangible assets during the years ended December 31, 2021 and 2020.

Leases

The Company’s leases are reviewed and classified as either capital or operating leases at their inception. Teknova may receive renewals or expansion options, rent holidays, and other incentives in certain of its lease agreements. For operating leases, Teknova recognizes lease costs, once control of the leased space is achieved, on a straight-line basis, without regard to deferred payment terms, such as rent holidays, that defer the commencement date of required payments. Additionally, incentives received are treated as reductions of costs over the term of the lease agreements.

Debt Issuance Costs

Debt issuance costs represent legal, consulting, and other financial costs associated with debt financing and are presented on the balance sheets as a direct reduction from the carrying amount of the related debt instrument. Debt issuance costs on the term debt are amortized to interest expense over the term of the applicable debt agreement using the effective interest rate method.

Revenue Recognition

We account for revenue in accordance with Accounting Standards Codification (ASC) 606, Revenue From Contracts With Customers (ASC 606). Teknova recognizes revenue for sales of goods through the following steps:

▪

Identification of the contract, or contracts, with a customer, typically a purchase order

▪

Identification of the performance obligations in the contract

▪

Determination of the transaction price

▪

Allocation of the transaction price to the performance obligations in the contract

▪

Recognition of revenue when, or as, the company satisfies a performance obligation

Teknova recognizes revenue from the sale of manufactured products and services when control of promised goods or services are transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Control is transferred when the customer has the ability to direct the use of and obtain benefits from the goods or services. The majority of the Company’s sales agreements contain performance obligations satisfied at a point in time when control is transferred to the customer.

Teknova’s sales are made directly to customers or through distributors, generally under agreements with payment terms typically shorter than 90 days and, in no case, exceeding one year. Therefore, Teknova’s contracts do not contain a significant financing component. Sales, value add, and other taxes collected concurrent with revenue are excluded from sales. The Company records amounts billed to customers for shipping and handling in a sales transaction as revenue. Shipping and handling costs are included in general and administrative expenses as revenue is recognized. Shipping and handling charges for the years ended December 31, 2021 and 2020 were $1.1 million and $0.8 million, respectively.

Occasionally, Teknova offers rebates, discounts, and returns on its products, however returns and refunds are an extremely rare occurrence and are not explicitly or implicitly part of the purchase order. The Company records rebates, discounts, and returns at the time in which they occur. The difference between recording these as they occur and estimating the amount of consideration in exchange for the transfer of promised goods would not have a material impact on the financial statements.

Costs incurred to obtain contracts with customers are expensed immediately, because the amortization period for such costs is one year or less. Teknova does not offer warranties on products.

Cost of Sales

Cost of sales includes salaries, wages and benefits, raw materials consumption (including direct and indirect material), depreciation, utilities, rent, manufacturing supplies and other production overhead.

Research and Development Expenses

The Company’s research and development expenses primarily consist of employee-related expenses, including salaries, benefits and stock-based compensation expense for personnel in process engineering and product development functions; expenses related to occupancy costs, laboratory supplies, consulting fees and depreciation associated with various assets used in the research and development of the Company’s products.

Sales and Marketing Costs

The Company’s sales and marketing expenses primarily consist of employee-related expenses, including salaries and benefits, commissions, advertising, occupancy costs and stock-based compensation expense for sales and marketing employees. The Company expenses advertising and marketing costs as incurred. Advertising and marketing expense for the years ended December 31, 2021 and 2020 was $0.4 million and $0.3 million, respectively, and is included in sales and marketing expenses.

General and Administrative Expenses

The Company’s general and administrative expenses primarily consist of costs associated with executive and administrative staff, and other expenses such as shipping charges, professional service fees, occupancy costs, IT systems, insurance, depreciation and stock-based compensation expense for executive and administrative staff.

Stock-Based Compensation

Teknova follows the fair value recognition provisions of ASC 718, Compensation—Stock Compensation. The Company accounts for stock-based compensation expense based on the estimated grant date fair value, using the Black-Scholes option-pricing model, which requires the Company to make a number of assumptions, including expected volatility, the expected risk-free interest rate, the expected term and the expected dividend. Stock-based compensation expense is recognized over the requisite service period of the award, which generally represents the scheduled vesting period. Forfeitures are recognized as they occur.

Employee Benefit Plans

Teknova has a salary deferral 401(k) plan (the 401(k) Plan) covering substantially all employees. Contributions by the Company to the 401(k) Plan for the years ended December 31, 2021 and 2020 were $0.6 million and $0.4 million, respectively. Contributions payable as of December 31, 2021 and 2020, of $0.3 million and $0.2 million, respectively, are included within accrued liabilities in the accompanying financial statements.

Income Taxes

Teknova uses the asset and liability method in accounting for its deferred income taxes. Under this method, deferred income taxes are provided for differences between the carrying amounts of assets and liabilities for financial reporting and tax purposes, using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates on the date of enactment. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some or all of the deferred tax assets will not be realized.

Teknova accounts for unrecognized tax benefits based upon its assessment of whether tax benefits are more likely than not to be sustained upon examination by tax authorities. The Company reports a liability for unrecognized tax benefits taken, or expected to be taken, in a tax return and recognizes associated interest and penalties, if any, in income tax expense. As of December 31, 2021 and 2020, the Company had no liabilities recorded for unrecognized tax benefits.

Net Income (Loss) Per Share of Common Stock

Basic net income (loss) per share is computed using the two-class method. Diluted net income (loss) per share is computed using the more dilutive of (i) the treasury stock method or if-converted method, or (ii) the two-class method. The two-class method is an earnings allocation formula that determines net income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. The treasury stock method uses the number of new shares that may be created by unexercised in-the-money warrants and options, where the exercise price is less than the current share price. The if-converted method calculates the value of convertible securities as if they were converted into new shares. Per share amounts are computed by dividing net income (loss) attributable to common stockholders by the weighted average shares outstanding during each period. The diluted net income (loss) per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, options to purchase common stock and convertible and redeemable preferred stock are considered common stock equivalents.

Accounting Pronouncements Not Yet Adopted

In February 2016, the FASB issued ASU No. 2016-02, Leases and its related interpretations, codified as ASC 842 (ASC 842). The new standard requires lessees to generally recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet. The new standard is effective with respect to Teknova beginning January 1, 2022 on a modified retrospective basis, and early adoption is permitted. Teknova expects that most of the operating lease commitments will be subject to the new standard and will be recognized as operating lease liabilities and right-of-use assets of approximately $20 million upon adoption of ASC 842, which will increase the Company’s total assets and total liabilities.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12). ASU 2019-12 removes certain exceptions to the general principles in ASC 740 and clarifies and amends certain guidance to promote consistent application. ASU 2019-02 is effective for the Company’s annual and interim periods beginning after December 15, 2021, with early adoption permitted. Depending on the amendment, adoption may be applied on a retrospective, modified retrospective or prospective basis. Teknova is currently evaluating the impact of the adoption of the standard on the financial statements and does not anticipate the standard to have a significant impact.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326). The standard introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses and will apply to accounts receivable. The new guidance will be effective for Teknova’s annual and interim periods beginning after December 15, 2022. Teknova is currently evaluating the impact of the adoption of the standard on the financial statements and does not anticipate the standard to have a significant impact.

Revenue

12 Months Ended

Dec. 31, 2021

Revenue From Contract With Customer [Abstract]

Revenue

Note 3. Revenue

Teknova has two primary business lines: Lab Essentials and Clinical Solutions. Previously, the Company had a third business line, Sample Transport, which it ceased producing in 2021. Teknova's products cross all stages of development, from early research through commercialization.

Lab Essentials

Teknova is a leader in providing highly complex chemical formulations for use in biological research and drug discovery. The Company's core research products consist of commonly used made-to-stock solutions and customer-specified formulations. During discovery, the Company's products are used regularly in small, bench-scale experiments. As customers optimize their processes and begin to scale up in volume, they tend to order more custom products. The Lab Essentials portion of Teknova's business includes: pre-poured media plates for cell growth and cloning, liquid cell culture media and supplements for cellular expansion, and molecular biology reagents for sample manipulation, resuspension, and purification. Teknova's research products include essential formulations for common research applications and highly customized formulations for customer-specific applications in genomics and bioproduction.

Clinical Solutions

In 2017, Teknova achieved ISO 13485:2016 certification, enabling the Company to meet the quality system regulation (QSR) of products for use in diagnostic and therapeutic applications. Teknova believes that its Clinical Solutions products are used in the production of mRNA vaccines, protein therapies, gene therapies and diagnostic kits. Since offering GMP-grade products, Teknova has achieved substantial growth in the number of customers seeking these products annually.

Sample Transport

In 2020, Teknova developed and commercialized a suite of sample collection and transport reagents to aid in sample processing for COVID-19 testing. Subsequently, demand for COVID-19 testing declined significantly while the supply of sample transport medium grew. As a result, in 2021, the Company decided to cease production of transport medium and no longer markets those reagents.

Teknova’s revenue, disaggregated by product category, for the years ended December 31, 2021 and 2020 were as follows (in thousands):


	For the Year Ended December 31,
	2021		2020
Lab Essentials	$	27,184	$	21,240
Clinical Solutions		6,793		4,807
Sample Transport		1,530		4,297
Other		1,386		953
Total revenue	$	36,893	$	31,297

Teknova’s revenue, disaggregated by geographic region, for the years ended December 31, 2021 and 2020 were as follows (in thousands):


	For the Year Ended December 31,
	2021		2020
United States	$	35,808	$	30,138
International		1,085		1,159
Total revenue	$	36,893	$	31,297

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

+ Details

Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 31, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net

Note 4. Goodwill and Intangible Assets, Net

There were no changes in the carrying amount of goodwill during the years ended December 31, 2021 and 2020.

The following is a summary of intangible assets with definite and indefinite lives (in thousands):


	Balance at December 31, 2021						Balance at December 31, 2020
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Definite Lived:
Customer relationships	$	9,180	$	3,395	$	5,785	$	9,180	$	2,247	$	6,933
Indefinite Lived:
Tradename		12,919		—		12,919		12,919		—		12,919
Total intangible assets	$	22,099	$	3,395	$	18,704	$	22,099	$	2,247	$	19,852

For the years ended December 31, 2021 and 2020 amortization expense was approximately $1.1 million and $1.1 million, respectively.

The remaining weighted-average useful life of definite lived intangible assets is five years. The estimated future amortization expense of intangible assets with definite lives is as follows (in thousands):


	Amount
2022	$	1,148
2023		1,148
2024		1,148
2025		1,148
2026		1,148
Thereafter		45
Estimated future amortization expense of definite-lived intangible assets	$	5,785

Fair Value Measurements

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 5. Fair Value Measurements

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price), in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 establishes a 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 for identical assets or liabilities.

▪

Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

▪

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

There were no financial assets measured at fair value as of December 31, 2021. Financial assets carried at fair value and measured on a recurring basis as of December 31, 2020 are classified in the hierarchy as follows (in thousands):


	Total		Level 1		Level 2		Level 3
Cash equivalents:
Money market funds	$	286	$	286	$	—	$	—
Total cash equivalents		286		286		—		—
Available-for-sale investments
U.S. corporate debt securities		858		—		858		—
Foreign corporate debt securities		953		—		953		—
Total available-for-sale investments		1,811		—		1,811		—
Total financial assets carried at fair value	$	2,097	$	286	$	1,811	$	—

Teknova has not transferred any investment securities between the three levels of the fair value hierarchy. Money market funds are included in cash and cash equivalents in the balance sheets. Available-for-sale investments are included in short-term investments—marketable securities in the balance sheets.

Teknova classifies investments in money market funds and U.S. treasury bills and government agency obligations within Level 1 as the prices are available from quoted prices in active markets. The Company’s investments in debt securities are classified as Level 2. Investments in U.S. corporate debt securities are valued based on observable inputs such as the U.S. Treasury yield curve, market indicated spreads, and quoted prices for identical assets in markets that are not active and/or similar assets in markets that are active. Investments in foreign corporate securities are valued based on observable inputs such as the applicable, country-specific market yield

curve, market indicated spreads by security rating and quoted prices for identical assets in markets that are not active and/or similar assets in markets that are active.

As of December 31, 2021 and 2020, short-term investments included zero and $1.8 million of available-for-sale securities with contractual maturities less than one year, respectively.

Unrealized gains and losses associated with the investments are reported in accumulated other comprehensive income. The Company had no unrealized gains and losses for the year ended December 31, 2021. For the year ended December 31, 2020, the Company recorded an insignificant amount in net unrealized gains associated with the short-term investments though other comprehensive income on the accompanying financial statements.

Realized gains and losses associated with investments, if any, are reported in other expense, net. The Company did not recognize any realized gains or losses during the year ended December 31, 2021. Teknova recognized an insignificant amount in realized losses for the year ended December 31, 2020.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Inventories, Net

12 Months Ended

Dec. 31, 2021

Inventory Disclosure [Abstract]

Inventories, Net

Note 6. Inventories, Net

Inventories consist of the following (in thousands):


	As of December 31,
	2021		2020
Finished goods, net	$	3,172	$	2,093
Work in process		105		137
Raw materials, net		2,117		1,352
Total inventories, net	$	5,394	$	3,582

Property, Plant and Equipment, Net

12 Months Ended

Dec. 31, 2021

Property Plant And Equipment [Abstract]

Property, Plant and Equipment, Net

Note 7. Property, Plant and Equipment, Net

Property, plant and equipment consist of the following (in thousands):


	As of December 31,
	2021			2020
Machinery and equipment	$	9,942		$	6,084
Office furniture and equipment		649			315
Vehicles		70			128
Leasehold improvements		2,805			2,442
		13,466			8,969
Less—Accumulated depreciation		(2,473	)		(995	)
		10,993			7,974
Construction in progress		18,817			2,034
Total property, plant and equipment, net	$	29,810		$	10,008

Depreciation expense related to property, plant and equipment recorded during the years ended December 31, 2021 and 2020 was $1.7 million and $0.9 million, respectively.

Teknova capitalizes a portion of the interest on funds borrowed to finance its capital expenditures. Capitalized interest is recorded as part of an asset’s cost and depreciated over the asset’s useful life. Capitalized interest costs were $0.3 million and zero for the years ended December 31, 2021 and 2020, respectively.

Accrued Liabilities

12 Months Ended

Dec. 31, 2021

Accrued Liabilities Current [Abstract]

Accrued Liabilities

Note 8. Accrued Liabilities

Accrued liabilities were comprised of the following (in thousands):


	As of December 31,
	2021		2020
Payroll-related	$	2,818	$	1,482
Property, plant and equipment		1,446		88
Other		1,231		757
Total current accrued liabilities	$	5,495	$	2,327

Long-Term Debt

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Long-Term Debt

Note 9. Long-Term Debt

On March 26, 2021, the Company entered into the following agreements (together, the Credit Agreement): (i) that certain credit and security agreement (Term Loan), dated as of March 26, 2021, by and among the Company and MidCap Financial Trust, as agent and lender, and the additional lenders from time to time party thereto, and (ii) that certain credit and security agreement (Revolving Loan), dated as of March 26, 2021, by and among the Company and MidCap Financial Trust, as agent and lender, and the additional lenders from time to time party thereto. The Credit Agreement provides for a $27.0 million credit facility (the Facility) consisting of a $22.0 million senior, secured term loan (the Term Loan), and a $5.0 million working capital facility (the Revolver). The Term Loan is staged such that $12.0 million was available immediately, an additional $5.0 million was available on September 30, 2021, and $5.0 million is available in 2022, but the final borrowing in 2022 is contingent upon achieving trailing twelve months of net revenue of $37.0 million if the proposed funding date is on or after January 1, 2022 and before July 1, 2022 or $38.5 million if the proposed funding date is on or after July 1, 2022 and on or before September 30, 2022 and earnings before interest, taxes, depreciation and amortization (EBITDA) targets (as defined in the Credit Agreement). The Company opted not to draw down the $5.0 million Term Loan tranche available on September 30, 2021. Borrowings on the Revolver are limited to a borrowing base calculation; however, as of December 31, 2021, there was no drawdown on the Revolver. The interest on the Term Loan is based on the annual rate of one-month London Inter-Bank Offered Rate (LIBOR) plus 6.45%, subject to a LIBOR floor of 1.50%. If any advance under the Term Loan is prepaid at any time, the prepayment fee is based on the amount being prepaid and an applicable percentage amount, such as 3%, 2%, or 1%, based on the date the prepayment is made after the closing date of the Term Loan. The Credit Agreement contains a financial covenant based upon a trailing twelve months of net revenue, including a requirement of $32.0 million in the twelve months ended December 31, 2021. As of December 31, 2021, the Company was in compliance with this requirement. The outstanding balance on the Facility will be due in full on March 1, 2026. At the end of the Term Loan, the Company will pay an exit fee of $0.6 million, which represents 5% of the $12.0 million in borrowings made available immediately on March 26, 2021. Such fee is being accreted to interest expense over the life of the Term Loan. The Company incurred $0.3 million of debt issuance costs which was recorded in long-term debt in the balance sheet.

On March 26, 2021, the Company drew the full $12.0 million of the Term Loan available. As of December 31, 2021, the gross outstanding long-term debt is $12.0 million ($11.9 million net of debt issuance costs) and is presented as long-term debt on the balance sheets (in thousands). The components of the carrying value of long-term debt as of December 31, 2021 and December 31, 2020, are detailed below:


	As of December 31,
	2021			2020
Long-term debt	$	12,000		$	—
Cumulative accretion of exit fee		90			—
Unamortized debt discount and debt issuance costs		(220	)		—
Long-term debt, net	$	11,870		$	—

At December 31, 2021, the scheduled maturities, of the Term Loan were as follows (in thousands):


	Amount
2022	$	—
2023		—
2024		4,500
2025		6,000
2026		1,500
Total	$	12,000

As of December 31, 2021, the fair value of Teknova's long-term debt approximates its carrying value. The fair value of Teknova's long-term debt was based on observable market inputs (Level 2).

Convertible and Redeemable Preferred Stock

12 Months Ended

Dec. 31, 2021

Temporary Equity Disclosure [Abstract]

Convertible and Redeemable Preferred Stock

Note 10. Convertible and Redeemable Preferred Stock

In June 2021, the Company’s board of directors and stockholders, respectively approved a 1.8746 for-one forward stock split, which was effected on June 17, 2021. On June 28, 2021, all outstanding shares of the Company’s Series A preferred stock were converted into 17,512,685 shares of the Company’s common stock on a one-to-one basis and their carrying value of $35.9 million was reclassified into stockholders’ equity. As of December 31, 2021, there were no shares of convertible and redeemable preferred stock issued and outstanding.

As of December 31, 2020, Series A preferred stock consisted of the following (in thousands, except share data):


	Shares Authorized		Shares Issued and Outstanding		Aggregate Liquidation Preference		Proceeds, net of Issuance Cost
Series A preferred stock		9,600,000		9,342,092	$	41,586	$	35,638

As of December 31, 2020, the Series A preferred stock had the followings rights and privileges:

Voting

Each holder of shares of Series A preferred stock was entitled to the number of votes equal to the number of shares of common stock into which the shares of Series A preferred stock held by such holder were convertible. The holders of shares of Series A preferred stock were entitled to vote on all matters on which the common stockholders were entitled to vote.

The holders of shares of Series A preferred stock were also entitled to elect three directors to the board. Additionally, there were certain matters that required approval of a majority of the holders of shares of Series A preferred stock.

Redemption and Liquidation Rights

In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company, the holders of Teknova’s shares of Series A preferred stock then outstanding were entitled to be paid out of the assets of the Company available for distribution to its stockholders, and in the event of a Deemed Liquidation Event (as defined below), the holders of shares of Series A preferred stock then-outstanding were entitled to be paid out of the consideration payable to stockholders in such Deemed Liquidation Event or out of the Available Proceeds (as defined below), as applicable, before any payment were to be made to the holders of shares of common stock, an amount per share equal to the greater of (i) the applicable original issue price per share, plus any declared but unpaid dividends, or (ii) an amount per share as would have been payable had all the shares of Series A preferred stock been converted into common stock immediately prior to such liquidation, dissolution, winding up or Deemed Liquidation Event (the Series A Liquidation Amount). In the event the Company had insufficient assets to pay the holders of shares of Series A preferred stock the full liquidation preference, the holders of shares of Series A preferred stock were to be paid ratably in proportion to the full amounts to which they would otherwise be entitled.

In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company, after the payment in full of all Series A Liquidation Amounts required to be paid to the holders of shares of Series A preferred stock, the remaining assets of the Company available for distribution to its stockholders or, in the case of a Deemed Liquidation Event, the consideration not payable to the holders of shares of Series A preferred stock or the remaining Available Proceeds, as the case may be, would be distributed among the holders of shares of common stock, pro rata based on the number of shares held by each such holder.

Each of the following events would be considered a “Deemed Liquidation Event” unless the holders of shares of at least a majority of the outstanding shares of Series A preferred stock voting as a single class on an as-converted basis (the Requisite Holders) elect otherwise: (i) a merger or consolidation in which the shares of capital stock of the Company outstanding immediately prior to such merger or consolidation did not continue to represent immediately following such merger or consolidation at least a majority, by voting power, of the outstanding capital stock of the surviving or resulting corporation or the parent corporation that wholly owned the surviving or resulting corporation, or (ii) a sale, lease, transfer, exclusive license or other disposition of all or substantially all of the assets of the Company and its subsidiaries (other than to a wholly-owned subsidiary of the Company).

“Available Proceeds” refers to consideration received by the Company for a Deemed Liquidation Event (net of any retained liabilities associated with the assets sold or technology licensed, as determined in good faith by the board of directors), together with any other assets of the Company available for distribution to its stockholders, all to the extent permitted by Delaware law governing distributions to stockholders.

Dividend

The holders of shares of Series A preferred stock were entitled to receive cumulative dividends (the Series A Accruing Dividends) at a rate of 8% per annum based on the Series A preferred stock issuance price of $3.8469196 per share of Series A preferred stock issued and outstanding, subject to appropriate adjustments for any stock dividends, stock splits, combinations, recapitalizations, or the like. Dividends were due and payable only upon a Deemed Liquidation Event. In the event of a dividend declared on undistributed earnings, the preferred stockholders would participate in the dividend equally along with common stockholders. The preferred shares participated equally with common stockholders on earnings, but did not participate in losses.

After payment of dividends under a deemed liquidation event to the holders of shares of the Series A preferred stock, any additional dividends would be distributed among all holders of shares of the Company’s common stock and Series A preferred stock in proportion to the number of shares of common stock that would be held by each such holder if all shares of Series A preferred stock were converted to common stock.

In the event any shares of Series A preferred stock were converted into common stock prior to a Deemed Liquidation Transaction, then such shares will not be entitled to receive any Series A Accruing Dividends.

Optional Conversion

Each share of Series A preferred stock was convertible at any time at the option of the holder into such number of fully paid and non-assessable shares of common stock as determined by dividing the original issue price for Series A preferred stock by the conversion price in effect at the time of conversion. The Series A conversion price was initially set at $3.8469196.

Mandatory Conversion

All outstanding shares of Series A preferred stock would automatically be converted into shares of common stock, at the then-effective conversion rate upon either (i) the closing of the sale of shares of common stock to the public at a price of at least $11.5407588 per share (as adjusted for any stock dividends, stock splits, combinations, recapitalizations, or the like), in a firm-commitment underwritten public offering pursuant to an effective registration statement resulting in proceeds to the Company of at least $50.0 million, net of the underwriting discount and commissions, and in connection with such offering the common stock was listed for trading on a stock exchange or marketplace approved the board of directors, including the approval of at least one Series A Director, as

defined in the Series A Stock Purchase Agreement, dated January 14, 2019, or (ii) the date and time, or the occurrence of an event, specified by vote or written consent of the holders of shares of at least a majority of the outstanding shares of Series A preferred stock voting as a single class on an as-converted basis.

Conversion Price Adjustments

The conversion price per share of Series A preferred stock would be reduced if the Company issues any additional shares of common stock without consideration or for consideration per share less than the Series A preferred stock conversion price in effect.

Classification

As a Deemed Liquidation Event could result in repurchase of the Series A preferred stock, and the board of directors of Teknova was controlled by the Series A holders, the Series A preferred stock was redeemable contingent upon the occurrence of an event that was not probable. Accordingly, the Company presented the Series A preferred stock outside of permanent equity as mezzanine equity. The Series A preferred stock was recorded at its issuance date fair value of the net proceeds raised through the issuance of Series A preferred stock. The Series A preferred stock did not require subsequent measurement until the Series A preferred stock was probable to become redeemable.

Stockholders' Equity

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Stockholders' Equity

Note 11. Stockholders’ Equity

Preferred stock

On June 28, 2021, in connection with the IPO, the Company’s amended and restated certificate of incorporation became effective. The amended and restated certificate of incorporation authorizes the issuance of 10,000,000 shares of preferred stock, par value $0.00001 per share, with rights and preferences, including voting rights, designated from time to time by the Company’s board of directors. As of December 31, 2021 and December 31, 2020, the Company had 10,000,000 and zero authorized shares of the Company’s preferred stock, par value $0.00001 per share, respectively. As of December 31, 2021 and December 31, 2020, there were zero shares of the Company’s preferred stock issued and outstanding.

Common stock

As of December 31, 2021 and December 31, 2020, the Company had 490,000,000 and 30,000,000 authorized shares of the Company’s common stock, par value $0.00001 per share, respectively. As of December 31, 2021 and December 31, 2020, there were 28,012,017 and 3,599,232 shares of the Company’s common stock issued and outstanding, respectively.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 13
-Subparagraph (b)
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Stock-Based Compensation

12 Months Ended

Dec. 31, 2021

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

Note 12. Stock-Based Compensation

Employee Stock Incentive Plans

Teknova maintains stock incentive plans for the benefit of certain of Teknova's officers, directors, consultants and employees. The Company granted time-based and performance-based options to purchase common shares under both its 2016 Stock Plan, as amended (2016 Plan) and 2020 Equity Incentive Plan, as amended (2020 Plan). At the time the 2020 Plan became effective, no additional stock awards were granted or are able to be granted in the future under the 2016 Plan. In June 2021, the Company’s board of directors and the Company’s stockholders approved the 2021 Equity Incentive Plan (2021 Plan), which became effective in connection with the IPO. From and after the date on which the 2021 Plan became effective, no further grants were made or will be made under the 2020 Plan. At December 31, 2021, 2,578,075 shares remain available for future grants under the 2021 Plan.

The types of equity-based awards that may be granted under the 2021 Plan include: options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance awards, and other stock-based awards. The maximum number of shares of the Company’s common stock that may be issued under the 2021 Plan is 5,020,113 shares of the Company’s common stock, which is the sum of (i) 2,908,283 new shares, plus (ii) an additional

number of shares not to exceed 2,111,830 shares, consisting of any shares of the Company’s common stock subject to outstanding stock options or other stock awards granted under the 2020 Plan that, on or after the 2021 Plan became effective, terminate or expire prior to exercise or settlement. The equity-based awards will vest over a four-year period for all employees and will vest over a three-year period for the Company’s board of directors. Generally, the number of shares of the Company’s common stock that will be reserved for issuance under the 2021 Plan will automatically increase on January 1 of each year for a period of ten years, beginning on January 1, 2022 and continuing through January 1, 2031, in an amount equal to 4% of the total number of shares of the Company’s common stock outstanding on December 31 of the preceding year; provided, however, that the Company’s board of directors may act prior to January 1st of a given year to provide that the increase for such year will be a lesser number of shares of common stock. Effective January 1, 2022 an additional 1,120,480 new shares became available for issuance under the 2021 Plan.

The following table summarizes the stock option activity under the stock incentive plans (in thousands, except share and per share data):


	Number of Shares			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at December 31, 2020		2,246,544		$	0.95		9.41	$	10,081
Granted		644,817		$	17.10		—		—
Exercised		(100	)	$	0.84		—		—
Cancelled or forfeited		(127,149	)	$	2.91		—		—
Outstanding at December 31, 2021		2,764,112		$	4.63		8.69	$	45,280
Exercisable at December 31, 2021		731,354		$	0.90		8.51	$	14,322
Vested and expected to vest at December 31, 2021		2,479,430		$	5.11		8.88	$	39,579

The total intrinsic value of options exercised during the year ended December 31, 2021 was not significant. There were no options exercised during the year ended December 31, 2020. The total grant date fair value of shares vested during 2021 and 2020, was $0.4 million and $0.1 million, respectively.

Employee Stock Purchase Plan

In June 2021, the Company’s board of directors and the Company’s stockholders, respectively, approved the Company’s 2021 Employee Stock Purchase Plan (the ESPP), which became effective in connection with the IPO. A total of 290,828 shares of the Company’s common stock are reserved for issuance under the ESPP. The number of shares of the Company’s common stock that will be reserved for issuance will automatically increase on January 1 of each year for a period of ten years, beginning on January 1, 2022 and continuing through January 1, 2031, by the lesser of (i) 1% of the total number of shares of the Company’s common stock outstanding on December 31 of the immediately preceding year; and (ii) 319,911 shares (subject to adjustments for stock splits, dividends, combinations of shares, exchanges of shares and other “Capitalization Adjustments”, as defined in the ESPP), except before the date of any such increase, the Company’s board of directors may determine that such increase will be less than the amount set forth in clauses (i) and (ii). Effective January 1, 2022 an additional 280,120 new shares became available for issuance under the ESPP.

Generally, all regular employees, including executive officers, employed by the Company will be eligible to participate in the ESPP and to contribute, normally through payroll deductions, up to 15% of their earnings (as defined in the ESPP) for the purchase of the Company’s common stock under the ESPP. Unless otherwise determined by the Company’s board of directors, shares of the Company’s common stock will be purchased for the accounts of employees participating in the Company’s ESPP at a price per share equal to the lesser of (i) 85% of the fair market value of a share of the Company’s common stock on the first day of an offering; or (ii) 85% of the fair market value of a share of the Company’s common stock on the date of purchase.

As of December 31, 2021, the Company had 290,828 shares of the Company's common stock reserved for future grants under the ESPP. Offering periods are generally six months long and begin on May 15 and November 15 of each year.

Valuation of Employee Share-Based Awards

Teknova uses the Black-Scholes option-pricing model to determine the fair value of stock options. The valuation model for stock compensation expense requires the Company to make assumptions and judgments about the variables used in the calculation, including the expected term, expected volatility and fair value of the Company’s common stock, and an assumed risk-free interest rate. The assumptions used in the Black-Scholes option-pricing model were as follows:

Volatility. Since the Company has limited historical data on volatility of its stock, expected volatility is based on the volatility of the stock of similar publicly traded entities. In evaluating similarity, the Company considers factors such as industry, stage of life cycle, size, and financial leverage.

Fair value of underlying common stock. Prior to the closing of the IPO, the Company had to estimate the fair value of its common stock. Management considered numerous objective and subjective factors to determine the fair value of the Company’s common stock. The factors considered include, but are not limited to: (i) the results of contemporaneous independent third-party valuations of the Company’s common stock; (ii) the prices, rights, preferences, and privileges of the Company’s convertible preferred stock relative to those of its common stock; (iii) the lack of marketability of the Company’s common stock; (iv) actual operating and financial results; (v) current business conditions and projections; (vi) the likelihood of achieving a liquidity event, such as an initial public offering or sale of the Company, given prevailing market conditions; and (vii) precedent transactions involving the Company’s shares. Since the closing of the IPO, the fair value of the Company’s common stock is determined by the closing price of its common stock as reported on the NASDAQ Global Market on the date of grant.

Risk-free interest rate. The risk-free rate that the Company uses is based on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term on the options.

Expected term. As the Company does not have sufficient historical exercise activity to estimate expected life, the expected life of options granted is determined using the simplified method. The simplified method is based on the vesting period and the contractual term for each grant or for each vesting tranche for awards with graded vesting. The midpoint of the vesting date and the maximum contractual expiration date is used as the expected term under this method.

Dividend yield. The Company has never declared or paid any cash dividends and does not plan to pay cash dividends in the foreseeable future. Therefore, the Company uses an expected dividend yield of zero. In addition, the terms of the Credit Agreement prohibit us from paying dividends, other than dividends payable on the Company’s common stock, without the prior consent of the lender.

The weighted average assumptions used in the Black-Scholes option-pricing model are as follows:


	For the Year Ended December 31,
	Employee Stock Option Plans						Employee Stock Purchase Plan
	2021			2020			2021			2020
Estimated dividend yield	-%			-%			-%			N/A
Weighted-average expected stock price volatility		33.51	%		36.13	%		25.47	%	N/A
Weighted-average risk-free interest rate		1.06	%		0.45	%		0.06	%	N/A
Expected average term of options (in years)		6.17			6.25			0.50		N/A
Weighted-average fair value of common stock	$	19.89		$	4.84		$	24.63		N/A
Weighted-average fair value per option	$	6.45		$	3.15		$	5.46		N/A

N/A - Not applicable during the period

Summary of Stock-Based Compensation Expense

Stock-based compensation expense included in the accompanying financial statements was as follows (in thousands):


	For the Year Ended December 31,
	2021		2020
Cost of sales	$	7	$	—
Research and development		157		—
Sales and marketing		66		—
General and administrative		1,321		300
Total stock-based compensation expense	$	1,551	$	300

Total stock-based compensation expense related to employee stock option plans was $1.6 million and $0.3 million for the years ended December 31, 2021 and 2020, respectively. Unrecognized compensation expense related to employee stock option plans was $8.3 million at December 31, 2021, which is expected to be recognized as expense over the weighted-average period of 3.25 years.

During the year ended December 31, 2021, the Company’s board of directors approved an amendment to the outstanding performance-based option to acquire 231,719 shares of the Company’s common stock previously granted under 2020 Plan, to eliminate the performance-based vesting and provide that such option will vest in 48 equal monthly installments. The stock option modification was measured as the excess of the fair value of the modified option over the fair value of the original option immediately before the modification. The incremental stock-based compensation expense for such stock option modification is approximately $3.5 million, of which $0.5 million incremental stock-based compensation expense was recognized during the year ended December 31, 2021 in general and administrative expense in the statements of operations and comprehensive income (loss). Additionally, in January 2019, the Company granted 284,682 performance-based options that vest upon a change of control. As of December 31, 2021, these options were not considered probable of vesting. The Company had unrecognized compensation expense of approximately $0.5 million at December 31, 2021 relating to these options.

Total stock-based compensation expense related to the ESPP was not significant since the adoption of the plan in June 2021. Total compensation cost related to the ESPP not yet recognized is also not significant. As of December 31, 2021, an insignificant amount has been withheld on behalf of employees for a future purchase under the ESPP. There were no purchases for the year ended December 31, 2021, related to the ESPP.

Net Income (Loss) Per Share Attributable to Common Stockholders

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Net Income (Loss) Per Share Attributable to Common Stockholders

Note 13. Net Income (Loss) Per Share Attributable to Common Stockholders

Basic and diluted net income (loss) per share is computed using the two-class method when it has issued shares that meet the definition of participating securities. Basic net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period without consideration for common stock equivalents. Diluted net income (loss) per share attributable to common stockholders is computed by dividing net income by the weighted-average number of common shares outstanding during the period and potentially dilutive common stock equivalents, except in cases where the effect of the common stock equivalent would be anti-dilutive. Potential common stock equivalents consist of common stock issuable upon exercise of stock options and convertible preferred stock. For periods of net loss, basic and diluted earnings per share are the same as the effect of the assumed exercise of stock options and convertible preferred stock is anti-dilutive.

The following table sets forth the computation of basic and diluted net income (loss) per share attributable to common stockholders for the years ended December 31, 2021 and 2020 (in thousands, except share and per share data):


	For the Year Ended December 31,
	2021			2020
Net income (loss) available to common stockholders	$	(9,803	)	$	3,570
Less: undistributed income attributable to preferred stockholders		—			(2,962	)
Net income (loss) attributable to common stockholders	$	(9,803	)	$	608
Basic weighted-average common stock outstanding		16,087,653			3,599,232
Weighted-average effect of potentially dilutive securities:
Stock options		—			201,404
Dilutive weighted-average common stock		16,087,653			3,800,636
Net income (loss) per share attributable to common stockholders
Basic	$	(0.61	)	$	0.17
Diluted	$	(0.61	)	$	0.16

The following is a summary of the common stock equivalents for the securities outstanding during the respective periods that have been excluded from the computation of diluted net loss per common share, as their effect would be anti-dilutive:


	For the Year Ended December 31,
	2021		2020
Employee share-based awards to purchase common stock (1)		2,206,993		—
Convertible Series A preferred stock (2)		4,607,059		9,342,092
Total		6,814,052		9,342,092

(1) Excludes performance-based options that were not considered probable of vesting. See "Note 12—Stock-Based Compensation" for additional information.

(2) On June 28, 2021, all outstanding shares of the Company’s Series A preferred stock were converted into 17,512,685 shares of the Company’s common stock. See "Note 10—Convertible and Redeemable Preferred Stock" for additional information.

Related Parties

12 Months Ended

Dec. 31, 2021

Related Parties

Note 14. Related Parties

The Company has identified the following as related parties through common control: Meeches LLC and Thomas E. Davis, LLC. Meeches LLC is controlled by Ted Davis and Irene Davis, founders and current directors and greater than five percent stockholders of the Company. Thomas E. Davis, LLC is also controlled by Ted Davis.

The Company leased certain real property and had a related party note receivable totaling $0.5 million as of December 31, 2020, from Thomas E. Davis, LLC. The related party note receivable was secured by a first priority Deed of Trust on the leased property and beared interest at 6% per annum, and interest payments were received monthly. The principal balance was payable in one payment and had an original maturity date of July 1, 2019, which was extended by the Company to July 1, 2020. On June 16, 2020 the Company executed an additional amendment to the note receivable to extend the maturity date to July 1, 2021. On March 31, 2021 the $0.5 million note receivable was paid in full.

The Company leases certain real property from Meeches LLC and does not have any outstanding balances owed to Meeches LLC. For the years ended December 31, 2021 and 2020, the Company paid Meeches LLC $0.3 million and $0.4 million, respectively.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 15. Commitments and Contingencies

Obligations under Operating Leases

The Company has various non-cancelable operating leases primarily for buildings in Hollister, California and Mansfield, Massachusetts. The leases have a lease term with varying expiration dates, which represent the non-cancelable periods of the leases and include extension options.

The lease agreement with Thomas E. Davis, LLC, a related party (see “Note 14—Related Parties”) commenced in March 2017, with a payment of $5.0 thousand a month and a one-year term. The Company had the option to extend the term of the lease for two additional separate, successive terms of one year each, following the expiration of the initial term of the lease. The Company entered into a lease extension in June 2020 and extended the lease term until June 2021. The lease agreement was not renewed beyond June 2021.

The lease agreement with Meeches LLC, a related party (see “Note 14—Related Parties”) commenced in September 2019, with a payment of $20.0 thousand a month and a five-year term.

Rent expense for the years ended December 31, 2021 and 2020 was $1.7 million and $1.2 million, respectively.

Future minimum lease payments with unrelated and related parties as of December 31, 2021 are as follows (in thousands):


	Unrelated		Related		Total
2022	$	2,551	$	267	$	2,818
2023		2,668		279		2,947
2024		2,686		191		2,877
2025		2,239		—		2,239
2026		1,209		—		1,209
Thereafter		6,538		—		6,538
Total future minimum lease payments	$	17,891	$	737	$	18,628

Litigation

Teknova’s industry is characterized by frequent claims and litigation, including claims regarding intellectual property and product liability. As a result, the Company may be subject to various legal proceedings from time to time. The results of any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources, and other factors. Any current litigation is considered immaterial and counter claims have been assessed as remote.

Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 16. Income Taxes

Teknova’s provision for (benefit from) income taxes consist of the following for the year ended December 31, 2021 and 2020 (in thousands):


	For the Year Ended December 31,
	2021			2020
Current:
Federal	$	—		$	(1,196	)
State		3			262
Total current		3			(934	)
Deferred:
Federal		(2,604	)		1,954
State		(233	)		136
Total deferred		(2,837	)		2,090
Income tax expense (benefit)	$	(2,834	)	$	1,156

A reconciliation of the statutory tax rate to the Company’s effective tax rate is as follows:


	For the Year Ended December 31,
	2021			2020
Statutory federal income tax rate %		21.0	%		21.0	%
State income tax rate		2.1			7.0
Permanent items		—			(0.2	)
Stock compensation		(1.5	)		1.7
CARES Act		—			(4.7	)
Research and development credit		0.6			—
Other		0.2			(0.3	)
Effective tax rate %		22.4	%		24.5	%

Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due, plus deferred taxes. Deferred taxes are recognized for differences between the basis of assets and liabilities for financial statement and income tax purposes. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will be either deductible or taxable when the assets and liabilities are recovered or settled. The Company’s component of net deferred tax liability and assets consist of the following as of December 31, 2021 and 2020 (in thousands):


	As of December 31,
	2021			2020
Deferred tax asset
Net operating loss carryforwards	$	3,672		$	692
Accrued compensation		401			214
Stock compensation		262			—
Tax credit carryforwards		150			53
Accruals and other		241			88
Total deferred tax asset		4,726			1,047
Deferred tax liability
Fixed assets		(2,429	)		(1,746	)
Intangibles		(4,973	)		(5,291	)
Total deferred tax liability		(7,402	)		(7,037	)
Valuation allowance		(477	)		—
Net deferred tax liability	$	(3,153	)	$	(5,990	)

As of the end of December 31, 2021, Teknova has federal and state net operating loss (NOL) carryforwards of $13.7 million and $11.7 million, respectively. The federal NOL carryforwards will carryforward indefinitely but are subject to an 80% taxable income limitation. The state NOL carryforwards begin to expire in 2036. As of December

31, 2021, the Company has federal research and development tax credit carryforwards of $0.1 million, which will begin to expire in 2035 and state research and development tax credit carryforward that are insignificant and carry forward indefinitely. NOLs and tax credit carryforwards may become subject to an annual limitation in the event of certain cumulative changes in the ownership interest of significant stockholders, as defined under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, as well as similar state tax provisions. This could limit the amount of NOLs and tax credits that the Company can utilize annually to offset future taxable income or tax liabilities.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted. The CARES Act, among other things, includes changes to the tax provisions that benefits business entities and makes certain technical corrections to the 2017 Tax Cuts and Jobs Act, including, permitting NOLs, carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. As a result, the Company's 2020 effective tax rate includes an income tax benefit related to the anticipated refunds from tax losses generated in prior years that are permitted to be carried back to certain years when the U.S. federal income tax rate was 34%.

On June 29, 2020, the California legislature enacted California Assembly Bill 85 (AB 85), which suspends the use of California NOLs and limits the use of California research tax credits for tax years beginning in 2020 and before 2023. The Company’s 2020 state income tax has increased as a result of restrictions on the utilization of tax attributes. There is no significant impact on the Company's 2021 financial statements due to the loss generated. Subsequently on February 9, 2022, California Senate Bill (SB 113) was enacted and restores the use of net operating losses and business tax credits that were suspended or limited under AB 85 one year earlier, allowing tax attributes to be used in fiscal year 2022. The tax impact of the new legislation, if any, will be recorded in the first quarter of fiscal year 2022 in the period of enactment.

The Company had no unrecognized tax benefits at December 31, 2021 and 2020. In connection with FASB’s Accounting for Uncertainty in Income Taxes, the Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company does not expect to recognize any unrecognized tax benefits over the next twelve months. Consequently, the Company has not accrued interest or penalties related to uncertain tax positions as of the end of December 31, 2021 or 2020.

Teknova files income tax returns in the U.S. federal jurisdiction and various states. The Company is no longer subject to U.S. federal income tax examinations for tax years prior to 2018. The Company is no longer subject to state income tax examinations for tax years prior to 2017. The Company is currently not under examination by the Internal Revenue Service or any other taxing authorities.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

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-Name Accounting Standards Codification
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-Paragraph 2
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-Section S99
-Paragraph 1
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-Name Accounting Standards Codification
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-Paragraph 1
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+ Details

Other Financial Information

12 Months Ended

Dec. 31, 2021

Income Statement [Abstract]

Other Financial Information

Note 17. Other Financial Information

The change in the allowance for doubtful accounts is as follows:


	For the Year Ended December 31,
	2021			2020
Beginning balance	$	23		$	11
Provisions (benefits)		235			12
Recoveries (write-offs), net		(235	)		—
Ending balance	$	23		$	23

The change in the inventory reserve is as follows:


	For the Year Ended December 31,
	2021			2020
Beginning balance	$	29		$	16
Provisions (benefits)		555			112
Write-offs and other		(114	)		(99	)
Ending balance	$	470		$	29

The change in the income tax valuation allowance is as follows:


	For the Year Ended December 31,
	2021		2020
Beginning balance	$	—	$	—
Additions charged to expense		477		—
Reductions charged to other accounts		—		—
Ending balance	$	477	$	—

Summary of Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Basis of Accounting, Presentation and Use of Estimates

Impact of COVID-19

Segment Reporting

Concentration of Risk

Concentrations of Risk

Financial Instruments

Customers

each made up 10% of total gross accounts receivable. No other customer accounted for more than 10% of total gross accounts receivable at December 31, 2020.

Suppliers

Cash and Cash Equivalents

Marketable Investments

Fair Value of Financial Instruments

Accounts Receivable

written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received.

Inventories

Notes Receivable from Related Parties

Capitalized Software Implementation Costs

Property, Plant and Equipment

depreciation are removed from the balance sheets, and the resulting gain or loss is reflected in the statements of operations and comprehensive income (loss).

The estimated useful lives of the major classes of property and equipment are as follows:


		Estimated Useful Lives
Machinery and equipment		7 years
Office furniture and equipment		3 –7 years
Vehicles		5 years
Leasehold improvements		4 –7 years

Impairment of Long-Lived Assets

Goodwill

Intangible Assets

Teknova’s intangible assets consist of the Teknova trade name and customer relationships.

There was no impairment of intangible assets during the years ended December 31, 2021 and 2020.

Leases

Debt Issuance Costs

Revenue Recognition

▪

Identification of the contract, or contracts, with a customer, typically a purchase order

▪

Identification of the performance obligations in the contract

▪

Determination of the transaction price

▪

Allocation of the transaction price to the performance obligations in the contract

▪

Recognition of revenue when, or as, the company satisfies a performance obligation

Costs incurred to obtain contracts with customers are expensed immediately, because the amortization period for such costs is one year or less. Teknova does not offer warranties on products.

Cost of Sales

Research and Development Expenses

Sales and Marketing Costs

General and Administrative Expenses

Stock-Based Compensation

Employee Benefit Plans

Income Taxes

Net Income (Loss) Per Share of Common Stock

Accounting Pronouncements Not Yet Adopted

Summary of Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Summary of Estimated Useful Lives of Major Classes of Property and Equipment

The estimated useful lives of the major classes of property and equipment are as follows:


		Estimated Useful Lives
Machinery and equipment		7 years
Office furniture and equipment		3 –7 years
Vehicles		5 years
Leasehold improvements		4 –7 years

Revenue (Tables)

12 Months Ended

Dec. 31, 2021

Revenue From Contract With Customer [Abstract]

Disaggregation of Revenue

Teknova’s revenue, disaggregated by product category, for the years ended December 31, 2021 and 2020 were as follows (in thousands):


	For the Year Ended December 31,
	2021		2020
Lab Essentials	$	27,184	$	21,240
Clinical Solutions		6,793		4,807
Sample Transport		1,530		4,297
Other		1,386		953
Total revenue	$	36,893	$	31,297

Teknova’s revenue, disaggregated by geographic region, for the years ended December 31, 2021 and 2020 were as follows (in thousands):


	For the Year Ended December 31,
	2021		2020
United States	$	35,808	$	30,138
International		1,085		1,159
Total revenue	$	36,893	$	31,297

Goodwill and Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Intangible Assets with Definite and Indefinite Lives

The following is a summary of intangible assets with definite and indefinite lives (in thousands):


	Balance at December 31, 2021						Balance at December 31, 2020
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Definite Lived:
Customer relationships	$	9,180	$	3,395	$	5,785	$	9,180	$	2,247	$	6,933
Indefinite Lived:
Tradename		12,919		—		12,919		12,919		—		12,919
Total intangible assets	$	22,099	$	3,395	$	18,704	$	22,099	$	2,247	$	19,852

Schedule of Future Amortization Expense

The estimated future amortization expense of intangible assets with definite lives is as follows (in thousands):


	Amount
2022	$	1,148
2023		1,148
2024		1,148
2025		1,148
2026		1,148
Thereafter		45
Estimated future amortization expense of definite-lived intangible assets	$	5,785

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Summary of Financial Assets Carried at Fair Value and Measured on Recurring Basis

Financial assets carried at fair value and measured on a recurring basis as of December 31, 2020 are classified in the hierarchy as follows (in thousands):


	Total		Level 1		Level 2		Level 3
Cash equivalents:
Money market funds	$	286	$	286	$	—	$	—
Total cash equivalents		286		286		—		—
Available-for-sale investments
U.S. corporate debt securities		858		—		858		—
Foreign corporate debt securities		953		—		953		—
Total available-for-sale investments		1,811		—		1,811		—
Total financial assets carried at fair value	$	2,097	$	286	$	1,811	$	—

Inventories, Net (Tables)

12 Months Ended

Dec. 31, 2021

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventories consist of the following (in thousands):


	As of December 31,
	2021		2020
Finished goods, net	$	3,172	$	2,093
Work in process		105		137
Raw materials, net		2,117		1,352
Total inventories, net	$	5,394	$	3,582

Property, Plant and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2021

Property Plant And Equipment [Abstract]

Property, Plant and Equipment

Property, plant and equipment consist of the following (in thousands):


	As of December 31,
	2021			2020
Machinery and equipment	$	9,942		$	6,084
Office furniture and equipment		649			315
Vehicles		70			128
Leasehold improvements		2,805			2,442
		13,466			8,969
Less—Accumulated depreciation		(2,473	)		(995	)
		10,993			7,974
Construction in progress		18,817			2,034
Total property, plant and equipment, net	$	29,810		$	10,008

Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2021

Accrued Liabilities Current [Abstract]

Summary of Accrued Liabilities

Accrued liabilities were comprised of the following (in thousands):


	As of December 31,
	2021		2020
Payroll-related	$	2,818	$	1,482
Property, plant and equipment		1,446		88
Other		1,231		757
Total current accrued liabilities	$	5,495	$	2,327

Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Summary of Components of Carrying Value of Long-Term Debt

The components of the carrying value of long-term debt as of December 31, 2021 and December 31, 2020, are detailed below:


	As of December 31,
	2021			2020
Long-term debt	$	12,000		$	—
Cumulative accretion of exit fee		90			—
Unamortized debt discount and debt issuance costs		(220	)		—
Long-term debt, net	$	11,870		$	—

Schedule of Maturities of Term Loan

At December 31, 2021, the scheduled maturities, of the Term Loan were as follows (in thousands):


	Amount
2022	$	—
2023		—
2024		4,500
2025		6,000
2026		1,500
Total	$	12,000

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details

Convertible and Redeemable Preferred Stock (Tables)

12 Months Ended

Dec. 31, 2021

Temporary Equity Disclosure [Abstract]

Summary of Series A Preferred Stock

As of December 31, 2020, Series A preferred stock consisted of the following (in thousands, except share data):


	Shares Authorized		Shares Issued and Outstanding		Aggregate Liquidation Preference		Proceeds, net of Issuance Cost
Series A preferred stock		9,600,000		9,342,092	$	41,586	$	35,638

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Summary of Stock Options Activity

The following table summarizes the stock option activity under the stock incentive plans (in thousands, except share and per share data):


	Number of Shares			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at December 31, 2020		2,246,544		$	0.95		9.41	$	10,081
Granted		644,817		$	17.10		—		—
Exercised		(100	)	$	0.84		—		—
Cancelled or forfeited		(127,149	)	$	2.91		—		—
Outstanding at December 31, 2021		2,764,112		$	4.63		8.69	$	45,280
Exercisable at December 31, 2021		731,354		$	0.90		8.51	$	14,322
Vested and expected to vest at December 31, 2021		2,479,430		$	5.11		8.88	$	39,579

Schedule of Stock-Based Compensation Expense

Summary of Stock-Based Compensation Expense

Stock-based compensation expense included in the accompanying financial statements was as follows (in thousands):


	For the Year Ended December 31,
	2021		2020
Cost of sales	$	7	$	—
Research and development		157		—
Sales and marketing		66		—
General and administrative		1,321		300
Total stock-based compensation expense	$	1,551	$	300

Schedule of Weighted-Average Assumptions used in Black-Scholes Option-Pricing Model

The weighted average assumptions used in the Black-Scholes option-pricing model are as follows:


	For the Year Ended December 31,
	Employee Stock Option Plans						Employee Stock Purchase Plan
	2021			2020			2021			2020
Estimated dividend yield	-%			-%			-%			N/A
Weighted-average expected stock price volatility		33.51	%		36.13	%		25.47	%	N/A
Weighted-average risk-free interest rate		1.06	%		0.45	%		0.06	%	N/A
Expected average term of options (in years)		6.17			6.25			0.50		N/A
Weighted-average fair value of common stock	$	19.89		$	4.84		$	24.63		N/A
Weighted-average fair value per option	$	6.45		$	3.15		$	5.46		N/A

N/A - Not applicable during the period

Net Income (Loss) Per Share Attributable to Common Stockholders (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Schedule of Computation of Basic And Diluted Net (Loss) Income Per Share Attributable to Common Stockholders


	For the Year Ended December 31,
	2021			2020
Net income (loss) available to common stockholders	$	(9,803	)	$	3,570
Less: undistributed income attributable to preferred stockholders		—			(2,962	)
Net income (loss) attributable to common stockholders	$	(9,803	)	$	608
Basic weighted-average common stock outstanding		16,087,653			3,599,232
Weighted-average effect of potentially dilutive securities:
Stock options		—			201,404
Dilutive weighted-average common stock		16,087,653			3,800,636
Net income (loss) per share attributable to common stockholders
Basic	$	(0.61	)	$	0.17
Diluted	$	(0.61	)	$	0.16

Summary of Common Stock Equivalents Excluded from Calculation of Diluted Loss per Share Attributable to Common Stockholders


	For the Year Ended December 31,
	2021		2020
Employee share-based awards to purchase common stock (1)		2,206,993		—
Convertible Series A preferred stock (2)		4,607,059		9,342,092
Total		6,814,052		9,342,092

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2021

Commitments And Contingencies Disclosure [Abstract]

Schedule of Future Minimum Lease Payments for Capital Leases

Future minimum lease payments with unrelated and related parties as of December 31, 2021 are as follows (in thousands):


	Unrelated		Related		Total
2022	$	2,551	$	267	$	2,818
2023		2,668		279		2,947
2024		2,686		191		2,877
2025		2,239		—		2,239
2026		1,209		—		1,209
Thereafter		6,538		—		6,538
Total future minimum lease payments	$	17,891	$	737	$	18,628

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Tax Expense (Benefit)

Teknova’s provision for (benefit from) income taxes consist of the following for the year ended December 31, 2021 and 2020 (in thousands):


	For the Year Ended December 31,
	2021			2020
Current:
Federal	$	—		$	(1,196	)
State		3			262
Total current		3			(934	)
Deferred:
Federal		(2,604	)		1,954
State		(233	)		136
Total deferred		(2,837	)		2,090
Income tax expense (benefit)	$	(2,834	)	$	1,156

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the statutory tax rate to the Company’s effective tax rate is as follows:


	For the Year Ended December 31,
	2021			2020
Statutory federal income tax rate %		21.0	%		21.0	%
State income tax rate		2.1			7.0
Permanent items		—			(0.2	)
Stock compensation		(1.5	)		1.7
CARES Act		—			(4.7	)
Research and development credit		0.6			—
Other		0.2			(0.3	)
Effective tax rate %		22.4	%		24.5	%

Schedule of Net Deferred Tax Liability and Assets

The Company’s component of net deferred tax liability and assets consist of the following as of December 31, 2021 and 2020 (in thousands):


	As of December 31,
	2021			2020
Deferred tax asset
Net operating loss carryforwards	$	3,672		$	692
Accrued compensation		401			214
Stock compensation		262			—
Tax credit carryforwards		150			53
Accruals and other		241			88
Total deferred tax asset		4,726			1,047
Deferred tax liability
Fixed assets		(2,429	)		(1,746	)
Intangibles		(4,973	)		(5,291	)
Total deferred tax liability		(7,402	)		(7,037	)
Valuation allowance		(477	)		—
Net deferred tax liability	$	(3,153	)	$	(5,990	)

Other Financial Information (Tables)

12 Months Ended

Dec. 31, 2021

Income Statement [Abstract]

Schedule of change in the allowance for doubtful accounts

The change in the allowance for doubtful accounts is as follows:


	For the Year Ended December 31,
	2021			2020
Beginning balance	$	23		$	11
Provisions (benefits)		235			12
Recoveries (write-offs), net		(235	)		—
Ending balance	$	23		$	23

Schedule of change in the inventory reserve

The change in the inventory reserve is as follows:


	For the Year Ended December 31,
	2021			2020
Beginning balance	$	29		$	16
Provisions (benefits)		555			112
Write-offs and other		(114	)		(99	)
Ending balance	$	470		$	29

Schedule of change in the income tax valuation allowance

The change in the income tax valuation allowance is as follows:


	For the Year Ended December 31,
	2021		2020
Beginning balance	$	—	$	—
Additions charged to expense		477		—
Reductions charged to other accounts		—		—
Ending balance	$	477	$	—

Nature of the Business - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	12 Months Ended
	Jun. 28, 2021	Jun. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Subsidiary Sale Of Stock [Line Items]
Common stock, shares issued			28,012,017	3,599,232
Payment of issuance costs for initial public offering		$ 99,100	$ 102,672	$ 0
Underwriting discounts and commissions		7,700
Issuance of common stock upon initial public offering, net of issuance costs and underwriting discounts (in shares)	17,512,685
Preferred stock, shares outstanding			0	0
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs		$ 3,600	$ 3,600
Deferred Offering Costs				$ 0
Convertible and Redeemable Preferred Stock [Member]
Subsidiary Sale Of Stock [Line Items]
Preferred stock, shares outstanding			0
Convertible and Redeemable Preferred Stock [Member] \| Minimum [Member]
Subsidiary Sale Of Stock [Line Items]
Convertible preferred stock carrying value			$ 35,600
Convertible and Redeemable Preferred Stock [Member] \| Maximum [Member]
Subsidiary Sale Of Stock [Line Items]
Convertible preferred stock carrying value			$ 35,900
IPO [Member]
Subsidiary Sale Of Stock [Line Items]
Option to Purchase Additional Shares of Common Stock		900,000
Shares Issued, Price Per Share		$ 16.00
Issuance of common stock upon initial public offering, net of issuance costs and underwriting discounts (in shares)		6,900,000
Accretion Expense	$ 300

Summary of Significant Accounting Policies - Additional Information (Details)	12 Months Ended
	Dec. 31, 2021 USD ($) Customer Segment Supplier	Dec. 31, 2020 USD ($) Customer Supplier	Jan. 01, 2022 USD ($)
Product Information [Line Items]
Operating segment \| Segment	1
Reportable segment \| Segment	1
Cash, FDIC insured amount	$ 250,000.0
Impairment of goodwill	0	$ 0
Capitalized Software Implementation Costs	100,000
Amortization expense related to capitalized implementation costs	0
Impairment	0	0
Impairment of intangible assets	0	0
Unrecognized Tax Benefits	0	0
Subsequent Event [Member]
Product Information [Line Items]
Operating lease right-of-use assets			$ 20,000,000
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]			Assets Current
Selling And Marketing Expense [Member]
Product Information [Line Items]
Marketing and Advertising Expense	400,000	300,000
General And Administrative Expense [Member]
Product Information [Line Items]
Shipping and handling charges	1,100,000	800,000
Accrued Liabilities [Member]
Product Information [Line Items]
Contributions payable	300,000	200,000
The 401(k) Plan [Member]
Product Information [Line Items]
Defined contribution plan, employer discretionary contribution amount	$ 600,000	$ 400,000
Customers Concentration Risk [Member] \| Accounts Receivable [Member]
Product Information [Line Items]
Number of Customers \| Customer	2
Customers Concentration Risk [Member] \| Largest Customer [Member] \| Revenue [Member]
Product Information [Line Items]
Percentage of Total Revenue	18.00%	15.00%
Customers Concentration Risk [Member] \| Second Largest Customer [Member] \| Revenue [Member]
Product Information [Line Items]
Percentage of Total Revenue		10.00%
Customers Concentration Risk [Member] \| No Customer [Member] \| Revenue [Member]
Product Information [Line Items]
Number of Customers \| Customer	0	0
Customers Concentration Risk [Member] \| No Customer [Member] \| Accounts Receivable [Member]
Product Information [Line Items]
Number of Customers \| Customer	0	0
Customers Concentration Risk [Member] \| Customer 1 [Member] \| Accounts Receivable [Member]
Product Information [Line Items]
Percentage of Total Revenue	16.00%	18.00%
Customers Concentration Risk [Member] \| Customer 2 [Member] \| Accounts Receivable [Member]
Product Information [Line Items]
Percentage of Total Revenue		16.00%
Customers Concentration Risk [Member] \| Direct Customer [Member] \| Accounts Receivable [Member]
Product Information [Line Items]
Number of Customers \| Customer	1	2
Supplier Concentration Risk [Member] \| Revenue [Member]
Product Information [Line Items]
Number of suppliers \| Supplier	3	4
Supplier Concentration Risk [Member] \| Revenue [Member] \| Supplier 1 [Member]
Product Information [Line Items]
Percentage of Total Revenue	40.00%	29.00%
Supplier Concentration Risk [Member] \| Revenue [Member] \| Supplier 2 [Member]
Product Information [Line Items]
Percentage of Total Revenue	11.00%	25.00%
Supplier Concentration Risk [Member] \| Revenue [Member] \| Supplier 3 [Member]
Product Information [Line Items]
Percentage of Total Revenue	10.00%	21.00%
Supplier Concentration Risk [Member] \| Revenue [Member] \| Supplier 4 [Member]
Product Information [Line Items]
Percentage of Total Revenue		11.00%
Supplier Concentration Risk [Member] \| Accounts Payable [Member] \| No Supplier [Member]
Product Information [Line Items]
Concentration Risk Number of Suppliers \| Supplier	0	0
Minimum [Member] \| Customers Concentration Risk [Member] \| Accounts Receivable [Member]
Product Information [Line Items]
Percentage of Total Revenue	12.00%	10.00%
Minimum [Member] \| Customers Concentration Risk [Member] \| No Customer [Member] \| Revenue [Member]
Product Information [Line Items]
Percentage of Total Revenue	10.00%	10.00%
Minimum [Member] \| Customers Concentration Risk [Member] \| No Customer [Member] \| Accounts Receivable [Member]
Product Information [Line Items]
Percentage of Total Revenue	10.00%	10.00%
Minimum [Member] \| Customers Concentration Risk [Member] \| Customer 2 [Member] \| Accounts Receivable [Member]
Product Information [Line Items]
Percentage of Total Revenue	10.00%
Minimum [Member] \| Supplier Concentration Risk [Member] \| Revenue [Member] \| Supplier 4 [Member]
Product Information [Line Items]
Percentage of Total Revenue		10.00%
Minimum [Member] \| Supplier Concentration Risk [Member] \| Accounts Payable [Member]
Product Information [Line Items]
Percentage of Total Revenue	20.00%	14.00%
Minimum [Member] \| Supplier Concentration Risk [Member] \| Accounts Payable [Member] \| No Supplier [Member]
Product Information [Line Items]
Percentage of Total Revenue	10.00%	10.00%
Minimum [Member] \| Supplier Concentration Risk [Member] \| Three Largest Customers [Member] \| Revenue [Member]
Product Information [Line Items]
Percentage of Total Revenue	10.00%

Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of Major Classes of Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2021
Machinery and Equipment [Member]
Property Plant And Equipment [Line Items]
Property and equipment, useful life	7 years
Office Furniture and Equipment [Member] \| Maximum [Member]
Property Plant And Equipment [Line Items]
Property and equipment, useful life	7 years
Office Furniture and Equipment [Member] \| Minimum [Member]
Property Plant And Equipment [Line Items]
Property and equipment, useful life	3 years
Vehicles [Member]
Property Plant And Equipment [Line Items]
Property and equipment, useful life	5 years
Leasehold Improvements [Member] \| Maximum [Member]
Property Plant And Equipment [Line Items]
Property and equipment, useful life	7 years
Leasehold Improvements [Member] \| Minimum [Member]
Property Plant And Equipment [Line Items]
Property and equipment, useful life	4 years

Revenue - Additional Information (Details)	12 Months Ended
Revenue - Additional Information (Details)	Dec. 31, 2021 BusinessLines
Revenue From Contract With Customer [Abstract]
Number of business lines	2

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Disaggregation Of Revenue [Line Items]
Revenue	$ 36,893	$ 31,297
United States [Member]
Disaggregation Of Revenue [Line Items]
Revenue	35,808	30,138
Non Us [Member]
Disaggregation Of Revenue [Line Items]
Revenue	1,085	1,159
Lab Essentials [Member]
Disaggregation Of Revenue [Line Items]
Revenue	27,184	21,240
Clinical Solutions [Member]
Disaggregation Of Revenue [Line Items]
Revenue	6,793	4,807
Sample Transport [Member]
Disaggregation Of Revenue [Line Items]
Revenue	1,530	4,297
Other Product [Member]
Disaggregation Of Revenue [Line Items]
Revenue	$ 1,386	$ 953

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Goodwill and Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
Carrying amount of goodwill	$ 0	$ 0
Amortization of intangible assets	$ 1,148	$ 1,148
Acquired finite-lived intangible assets, weighted average useful life	5 years

Goodwill and Intangible Assets, Net - Summary of Intangible Assets with Definite and Indefinite Lives (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Schedule Of Goodwill And Intangible Assets [Line Items]
Intangible Assets, Gross	$ 22,099	$ 22,099
Intangible Assets, Accumulated Amortization	3,395	2,247
Intangible Assets, Net (Including Goodwill), Total	18,704	19,852
Customer Relationships [Member]
Schedule Of Goodwill And Intangible Assets [Line Items]
Intangible Assets, Gross	9,180	9,180
Intangible Assets, Accumulated Amortization	3,395	2,247
Intangible Assets, Net (Including Goodwill), Total	5,785	6,933
Trade Names [Member]
Schedule Of Goodwill And Intangible Assets [Line Items]
Intangible Assets, Gross	12,919	12,919
Intangible Assets, Accumulated Amortization	0	0
Intangible Assets, Net (Including Goodwill), Total	$ 12,919	$ 12,919

Goodwill and Intangible Assets, Net - Schedule of Future Amortization Expense (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
2022	$ 1,148
2023	1,148
2024	1,148
2025	1,148
2026	1,148
Thereafter	45
Estimated future amortization expense of definite-lived intangible assets	$ 5,785

Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Financial instruments measured at fair value	$ 0	$ 2,097
Short-term investments - marketable securities	0	$ 1,811
Unrealized gains and losses on investment	0
Realized gains or losses on investment	$ 0

Fair Value Measurements - Summary of Financial Assets Carried at Fair Value and Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents		$ 286
Total available-for-sale investments		1,811
Total financial assets carried at fair value	$ 0	2,097
U.S. Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total available-for-sale investments		858
Foreign Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total available-for-sale investments		953
Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents		286
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents		286
Total available-for-sale investments		0
Total financial assets carried at fair value		286
Level 1 [Member] \| U.S. Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total available-for-sale investments		0
Level 1 [Member] \| Foreign Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total available-for-sale investments		0
Level 1 [Member] \| Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents		286
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents		0
Total available-for-sale investments		1,811
Total financial assets carried at fair value		1,811
Level 2 [Member] \| U.S. Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total available-for-sale investments		858
Level 2 [Member] \| Foreign Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total available-for-sale investments		953
Level 2 [Member] \| Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents		0
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents		0
Total available-for-sale investments		0
Total financial assets carried at fair value		0
Level 3 [Member] \| U.S. Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total available-for-sale investments		0
Level 3 [Member] \| Foreign Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total available-for-sale investments		0
Level 3 [Member] \| Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents		$ 0

Inventories, Net - Schedule of Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Finished goods, net	$ 3,172	$ 2,093
Work in process	105	137
Raw materials, net	2,117	1,352
Total inventories, net	$ 5,394	$ 3,582

Property, Plant and Equipment Net - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 13,466	$ 8,969
Less—Accumulated depreciation	(2,473)	(995)
Property, plant and equipment, after depreciation	10,993	7,974
Construction in progress	18,817	2,034
Total property, plant and equipment, net	29,810	10,008
Machinery and Equipment [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	9,942	6,084
Office Furniture and Equipment [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	649	315
Vehicles [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	70	128
Leasehold Improvements [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 2,805	$ 2,442

Property, Plant and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Property Plant And Equipment [Abstract]
Depreciation	$ 1.7	$ 0.9
Accumulated Capitalized Interest Costs	$ 0.3	$ 0.0

Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Accrued Liabilities Current [Abstract]
Payroll-related	$ 2,818	$ 1,482
Property, plant and equipment	1,446	88
Other	1,231	757
Total current accrued liabilities	$ 5,495	$ 2,327

Long-Term Debt - Additional Information (Details) - USD ($)		1 Months Ended		12 Months Ended
	Mar. 26, 2021	Jul. 31, 2022	Jan. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Sep. 30, 2022	Sep. 30, 2021
Debt Instrument [Line Items]
Maximum amount borrowed	$ 27,000,000.0
Line of Credit Facility, Current Borrowing Capacity	5,000,000.0
Maximum amount borrowed at the end of month	$ 12,000,000.0
Unused Borrowing Capacity Amount							$ 5,000,000.0
Line of Credit Facility, Description	If any advance under the Term Loan is prepaid at any time, the prepayment fee is based on the amount being prepaid and an applicable percentage amount, such as 3%, 2%, or 1%, based on the date the prepayment is made after the closing date of the Term Loan.
Term Loan	$ 12,000,000.0
Debt issuance cost				$ 153,000	$ 0
Long term debt				12,000,000	0
Long-term debt, net				11,870,000	$ 0
Forecast [Member]
Debt Instrument [Line Items]
Unused Borrowing Capacity Amount						$ 5,000,000.0
Contingent Revenue		$ 38,500,000	$ 37,000,000.0
LIBOR [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	6.45%
LIBOR Floor [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.50%
Senior Secured Term Loan [Member]
Debt Instrument [Line Items]
Maximum amount borrowed	$ 22,000,000.0
Net revenue requirement for the financial covenant				$ 32,000,000.0
Term loan exit fee	$ 600,000
Exit Fees Percentage of Term Loan	5.00%
Term Loan	$ 12,000,000.0
Debt issuance cost	$ 300,000

Long-Term Debt - Summary of Components of Carrying Value of Long-Term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Debt Disclosure [Abstract]
Long term debt	$ 12,000	$ 0
Cumulative accretion of exit fee	90	0
Unamortized debt discount and debt issuance costs	(220)	0
Long-term debt, net	$ 11,870	$ 0

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

Long-Term Debt - Summary of Scheduled Maturities of Term Loan (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Long Term Debt [Abstract]
2022	$ 0
2023	0
2024	4,500
2025	6,000
2026	1,500
Total	$ 12,000

Convertible and Redeemable Preferred Stock - Additional Information (Details) $ / shares in Units, $ in Thousands			12 Months Ended
	Jun. 28, 2021 USD ($) shares	Jun. 17, 2021	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2020 USD ($)
Temporary Equity [Line Items]
Stockholders' equity note, stock split, conversion ratio		1.8746
Convertible Series A Preferred Stock [Member]
Temporary Equity [Line Items]
Convertible preferred stock shares issued upon conversion \| shares	17,512,685
Convertible preferred stock, terms of conversion	one-to-one
Temporary equity, carrying amount, attributable to parent \| $	$ 35,900		$ 0	$ 35,638
Temporary equity, shares issued \| shares			0
Temporary equity, shares outstanding \| shares			0
Preferred stock dividend percentage			8.00%
Preferred stock dividend per share \| $ / shares			$ 3.8469196
Preferred stock conversion price \| $ / shares			3.8469196
Convertible Series A Preferred Stock [Member] \| Minimum [Member]
Temporary Equity [Line Items]
Sale of stock price \| $ / shares			$ 11.5407588
Proceeds from issuance of common stock \| $			$ 50,000

Convertible and Redeemable Preferred Stock - Summary of Series A Preferred Stock (Details) - Convertible Series A Preferred Stock [Member] $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) shares
Temporary Equity [Line Items]
Shares Authorized \| shares	9,600,000
Shares Issued and Outstanding \| shares	9,342,092
Aggregate Liquidation Preference \| $	$ 41,586
Proceeds, net of Issuance Cost \| $	$ 35,638

Stockholders' Equity - Additional Information (Details) - $ / shares	Dec. 31, 2021	Jun. 28, 2021	Dec. 31, 2020
Equity [Abstract]
Preferred stock, par value	$ 0.00001	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	10,000,000	10,000,000	0
Preferred stock, shares issued	0		0
Preferred stock, shares outstanding	0		0
Common stock, par value	$ 0.00001		$ 0.00001
Common stock, shares authorized	490,000,000		30,000,000
Common stock, shares issued	28,012,017		3,599,232
Common stock, shares outstanding	28,012,017		3,599,232

Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands		1 Months Ended	12 Months Ended
	Jun. 14, 2021	Jan. 31, 2019	Dec. 31, 2021	Dec. 31, 2020	Jan. 31, 2022	Jan. 01, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted-average recognition period			3 years 3 months
General And Administrative Expense			$ 20,392	$ 8,208
Intrinsic value of options			0
Grant date fair value of shares vested			400	$ 100
Number of Options, Exercised				0
Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized stock-based compensation expense			500
Performance Based Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Options, Granted		284,682
Employees [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized stock-based compensation expense			3,500
General And Administrative Expense			$ 500
2021 Equity Incentive Plans [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share available For Future grants			2,578,075
Shares to be issued under share-based payment arrangement			5,020,113
New shares to be issued under share-based payment arrangement			2,908,283
Additional shares to be issued under share-based payment arrangement			2,111,830		1,120,480
Increase in common stock reserved for future issuance, term period			10 years
2021 Equity Incentive Plans [Member] \| Employees [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			4 years
2021 Equity Incentive Plans [Member] \| Board Of Director [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			3 years
2016, 2020, 2021 Equity Incentive Plans [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized stock-based compensation expense			$ 8,300
Number of Options, Exercised			100
Number of Options, Granted			644,817
2016, 2020, 2021 Equity Incentive Plans [Member] \| Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense related to employee stock option			$ 1,600	$ 300
2021 Employee Stock Purchase Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share available For Future grants	319,911
Increase in common stock reserved for future issuance, term period	10 years
Percentage of additional shares added on outstanding shares	1.00%
Common stock reserved for future issuance	290,828		290,828			280,120
Maximum employee subscription rate	15.00%
Discount from market price, offering date	85.00%
Discount from market price, purchase date	85.00%
Shares outstanding, Acquired from Performance plan Issuance			231,719
Employee Stock Purchase Plan, Offering Period			Offering periods are generally six months long and begin on May 15 and November 15 of each year.

Stock-Based Compensation - Summary of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Options, Exercised		0
2016, 2020, 2021 Equity Incentive Plans [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Options, Outstanding, Beginning balance	2,246,544
Number of Options, Granted	644,817
Number of Options, Exercised	(100)
Number of Options, Cancelled or forfeited	(127,149)
Number of Options, Outstanding, Ending balance	2,764,112	2,246,544
Number of Options, Exercisable, Ending balance	731,354
Number of Options, Vested and expected to vest	2,479,430
Weighted Average Exercise Price per Share, Options outstanding, Beginning balance	$ 0.95
Weighted Average Exercise Price per Share, Granted	17.10
Weighted Average Exercise Price per Share, Exercised	0.84
Weighted Average Exercise Price per Share, Cancelled or forfeited	2.91
Weighted Average Exercise Price per Share, Options outstanding, Ending balance	4.63	$ 0.95
Weighted Average Exercise Price per Share, Exercisable, Ending balance	0.90
Weighted Average Exercise Price per Share, Vested and expected to vest	$ 5.11
Weighted Average Remaining Contractual Term (in years), Options outstanding	8 years 8 months 8 days	9 years 4 months 28 days
Weighted Average Remaining Contractual Term (in years), Exercisable	8 years 6 months 3 days
Weighted Average Remaining Contractual Term (in years), Vested and expected to vest	8 years 10 months 17 days
Aggregate Intrinsic Value, Options outstanding	$ 45,280	$ 10,081
Aggregate Intrinsic Value, Exercisable	14,322
Aggregate Intrinsic Value, Vested and expected to vest	$ 39,579

Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	$ 1,551	$ 300
Cost of Sales [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	7	0
Research and Development Expense [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	157	0
Selling and Marketing Expense [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	66	0
General and Administrative Expense [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	$ 1,321	$ 300

Stock-Based Compensation - Schedule of Weighted-Average Assumptions used in Black-Scholes Option-Pricing Model (Details) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Employee Stock Purchase Plan [Member]
Subsidiary Sale Of Stock [Line Items]
Estimated dividend yield	0.00%
Weighted-average expected stock price volatility	25.47%
Weighted-average risk-free interest rate	0.06%
Expected average term of options (in years)	6 months
Weighted-average fair value of common stock	$ 24.63
Weighted-average fair value per option	$ 5.46
Employee Stock Option Plans [Member]
Subsidiary Sale Of Stock [Line Items]
Estimated dividend yield	0.00%	0.00%
Weighted-average expected stock price volatility	33.51%	36.13%
Weighted-average risk-free interest rate	1.06%	0.45%
Expected average term of options (in years)	6 years 2 months 1 day	6 years 3 months
Weighted-average fair value of common stock	$ 19.89	$ 4.84
Weighted-average fair value per option	$ 6.45	$ 3.15

Net (Loss) Income Per Share Attributable to Common Stockholders - Schedule of Computation of Basic and Diluted Net (Loss) Income Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share [Abstract]
Net income (loss) attributable to stockholders	$ (9,803)	$ 3,570
Less: undistributed income attributable to preferred stockholders	0	(2,962)
Net income (loss) attributable to common stockholders	$ (9,803)	$ 608
Basic weighted-average common stock outstanding	16,087,653	3,599,232
Weighted-average effect of potentially dilutive securities:
Stock options	0	201,404
Dilutive weighted-average common stock	16,087,653	3,800,636
Earnings per share attributable to common stockholders:
Basic	$ (0.61)	$ 0.17
Diluted	$ (0.61)	$ 0.16

Net (Loss) Income Per Share Attributable to Common Stockholders - Summary of Common Stock Equivalents Excluded from Calculation of Diluted Loss per Share Attributable to Common Stockholders (Details) - shares

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]

Stock options to purchase common stock

6,814,052

9,342,092

Stock Options to Purchase Common Stock [Member]

Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]

Stock options to purchase common stock

^[1]

2,206,993

Convertible Series A Preferred Stock [Member]

Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]

Stock options to purchase common stock

^[2]

4,607,059

9,342,092

[1]	Excludes performance-based options that were not considered probable of vesting. See "Note 12—Stock-Based Compensation" for additional information.
[2]	On June 28, 2021, all outstanding shares of the Company’s Series A preferred stock were converted into 17,512,685 shares of the Company’s common stock. See "Note 10—Convertible and Redeemable Preferred Stock" for additional information.

Net (Loss) Income Per Share Attributable to Common Stockholders - Summary of Common Stock Equivalents Excluded from Calculation of Diluted Loss per Share Attributable to Common Stockholders (Parenthetical) (Details)	Jun. 28, 2021 shares
Series A Preferred Stock [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Convertible preferred stock shares issued upon conversion	17,512,685

Related Parties - Additional Information (Details) - USD ($)		1 Months Ended		12 Months Ended
	Mar. 31, 2021	Sep. 30, 2019	Mar. 31, 2017	Dec. 31, 2021	Dec. 31, 2020
Related Party Transaction [Line Items]
Payment for Rent Expense				$ 1,700,000	$ 1,200,000
Thomas E Davis L L C
Related Party Transaction [Line Items]
Related party notes receivable					500,000
Related Party Transaction, Rate				6.00%
Note receivable paid by related party	$ 500,000
Payment for Rent Expense			$ 5,000.0
Meeches LLC [Member]
Related Party Transaction [Line Items]
Payment for Rent Expense		$ 20,000.0		$ 300,000	$ 400,000

- Definition

Amount of revenue, fees and commissions earned from transactions between (a) a parent company and its subsidiaries; (b) subsidiaries of a common parent; (c) an entity and trusts for the benefit of employees, for example, but not limited to, pension and profit-sharing trusts that are managed by or under the trusteeship of the entity's management; (d) an entity and its principal, owners, management, or members of their immediate families; and (e) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 946
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07.1(c))
-URI http://asc.fasb.org/extlink&oid=120401555&loc=SL114874292-224272

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(B))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(C))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.1(e))
-URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227

+ Details

Commitments and Contingencies - Additional Information (Details) - USD ($)	1 Months Ended		12 Months Ended
	Sep. 30, 2019	Mar. 31, 2017	Dec. 31, 2021	Dec. 31, 2020
Loss Contingencies [Line Items]
Payment for Rent Expense			$ 1,700,000	$ 1,200,000
Thomas E Davis L L C
Loss Contingencies [Line Items]
Payment for Rent Expense		$ 5,000.0
Lessee, Operating Lease, Term of Contract			1 year
Lessee, Operating Lease, Option to Extend			The Company had the option to extend the term of the lease for two additional separate, successive terms of one year each, following the expiration of the initial term of the lease.
Meeches LLC [Member]
Loss Contingencies [Line Items]
Payment for Rent Expense	$ 20,000.0		$ 300,000	$ 400,000
Lessee, Operating Lease, Term of Contract			5 years

Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Capital Leases (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Loss Contingencies [Line Items]
2022	$ 2,818
2023	2,947
2024	2,877
2025	2,239
2026	1,209
Thereafter	6,538
Total future minimum lease payments	18,628
Unrelated Party [Member]
Loss Contingencies [Line Items]
2022	2,551
2023	2,668
2024	2,686
2025	2,239
2026	1,209
Thereafter	6,538
Total future minimum lease payments	17,891
Related Party [Member]
Loss Contingencies [Line Items]
2022	267
2023	279
2024	191
2025	0
2026	0
Thereafter	0
Total future minimum lease payments	$ 737

Income Taxes - Summary of Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Current:
Federal	$ 0	$ (1,196)
State	3	262
Total current	3	(934)
Deferred:
Federal	(2,604)	1,954
State	(233)	136
Total deferred	(2,837)	2,090
Income tax expense (benefit)	$ (2,834)	$ 1,156

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Summary of Reconciliation of the Statutory Tax Rate to the Company's Effective Tax Rate (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Statutory federal income tax rate%	21.00%	21.00%
State income tax rate	2.10%	7.00%
Permanent items	0.00%	(0.20%)
Stock compensation	(1.50%)	1.70%
CARES Act	0.00%	(4.70%)
Research and development credit	0.60%	0.00%
Other	0.20%	(0.30%)
Effective tax rate %	22.40%	24.50%

Income Taxes - Schedule of Net Deferred Tax Liability and Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deferred tax asset
Net operating loss carryforwards	$ 3,672	$ 692
Accrued compensation	401	214
Stock compensation	262	0
Tax credit carryforwards	150	53
Accruals and other	241	88
Total deferred tax asset	4,726	1,047
Deferred tax liability
Fixed assets	(2,429)	(1,746)
Intangibles	(4,973)	(5,291)
Total deferred tax liability	(7,402)	(7,037)
Valuation allowance	(477)	0
Net deferred tax liability	$ (3,153)	$ (5,990)

Income Taxes - Additional Information (Details) - USD ($)		12 Months Ended
	Mar. 27, 2020	Dec. 31, 2021	Dec. 31, 2020
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards expiration year		2036
Research and development tax credit carryforwards		$ 100,000
Research and development tax credit carryforwards expiration year		2035
Income tax rate, percent		22.40%	24.50%
Offset taxable income, percentage	100.00%
Unrecognized Tax Benefits		$ 0	$ 0
Accrued interest or penalties		0	$ 0
Federal [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards		$ 13,700,000
Taxable income limitation, percent		80.00%
Income tax rate, percent			34.00%
State [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards		$ 11,700,000

Other Financial Information - Change in the allowance for doubtful accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract]
Beginning balance	$ 23	$ 11
Provisions (benefits)	235	12
Recoveries (write-offs), net	(235)	0
Ending balance	$ 23	$ 23

Other Financial Information - Change in the inventory reserve (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Change in Accounting Estimate [Line Items]
Beginning balance	$ 23	$ 11
Provisions (benefits)	235	12
Recoveries (write-offs), net	(235)	0
Ending balance	23	23
Inventory reserve [Member]
Change in Accounting Estimate [Line Items]
Beginning balance	29	16
Provisions (benefits)	555	112
Recoveries (write-offs), net	(114)	(99)
Ending balance	$ 470	$ 29

Other Financial Information - Change in the income tax valuation allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Regulatory Assets [Line Items]
Beginning balance	$ 23	$ 11
Additions charged to expense	235	12
Reductions charged to other accounts	(235)	0
Ending balance	23	23
Income tax valuation allowance [Member]
Regulatory Assets [Line Items]
Beginning balance	0	0
Additions charged to expense	477	0
Reductions charged to other accounts	0	0
Ending balance	$ 477	$ 0