UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 2054
FORM
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
|
|
|
|
|
|
|
|||
(State or other jurisdiction of incorporation) |
|
(Commission File Number) |
|
(IRS Employer Identification No.) |
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (
N/A
(Former name, or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities Registered pursuant to Section 12(b) of the Act:
Title of each class |
|
Trading Symbol(s) |
|
Name of each exchange on which registered |
|
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02. Results of Operations and Financial Condition.
On November 9, 2023, Alpha Teknova, Inc. (the “Company”) issued a press release announcing its financial results for the third quarter ended September 30, 2023 (the “Press Release”). A copy of the Press Release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. The information in this Item 2.02, including the Press Release, is intended to be furnished under Item 2.02 and Item 9.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. |
|
Description |
99.1 |
|
Press Release issued by Alpha Teknova, Inc., dated November 9, 2023 |
104 |
|
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
ALPHA TEKNOVA, INC. |
|
Date: November 9, 2023 |
By: |
/s/ Stephen Gunstream |
|
|
Stephen Gunstream |
|
|
President and Chief Executive Officer |
Exhibit 99.1
Teknova Reports Third Quarter 2023 Financial Results
Raised $22.9 million of equity capital, paid down $10.0 million of long-term debt
Third quarter 2023 total revenue was $8.2 million, down 24% from prior year
Expect 2023 revenue at the low end of previously announced guidance range of $37-40 million
HOLLISTER, Calif., November 9, 2023 – Alpha Teknova, Inc. (“Teknova” or the “Company”) (Nasdaq: TKNO), a leading producer of critical reagents for the discovery, development, and commercialization of novel therapies, vaccines, and molecular diagnostics, today announced financial results for the third quarter ended September 30, 2023.
“Today we reported a solid third quarter, both financially and operationally, against a difficult market backdrop,” said Stephen Gunstream, President and Chief Executive Officer of Teknova. “We have expanded the use of our new state-of-the-art GMP facility to produce a variety of products, such as single-use bags and bottles, to meet the needs of customers in our target markets. While we continue to see emerging biotech customers conserving capital, we remain enthusiastic about our position in the market and the long-term potential of our business.”
“We are very pleased to have completed an equity capital raise of $22.9 million in September, which along with repayment of $10.0 million of debt strengthens our balance sheet. Through the third quarter of 2023, we have also managed our overall expenses and capital expenditures to plan and now expect full-year free cash outflow to be less than $30 million,” explained Matt Lowell, Teknova’s Chief Financial Officer.
Corporate Updates
1
Revenue for the Third Quarter and Year-to-Date
|
|
For the Three Months Ended |
|
|
For the Nine Months Ended |
|
||||||||||
(Dollars in thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Lab Essentials |
|
$ |
7,274 |
|
|
$ |
9,470 |
|
|
$ |
22,112 |
|
|
$ |
24,838 |
|
Clinical Solutions |
|
|
597 |
|
|
|
919 |
|
|
|
5,859 |
|
|
|
7,673 |
|
Other |
|
|
298 |
|
|
|
303 |
|
|
|
846 |
|
|
|
1,018 |
|
Total revenue |
|
$ |
8,169 |
|
|
$ |
10,692 |
|
|
$ |
28,817 |
|
|
$ |
33,529 |
|
Third Quarter 2023 Financial Results
Total revenue for the third quarter 2023 was $8.2 million, down 24% compared to $10.7 million in the third quarter 2022. Lab Essentials revenue was $7.3 million in the third quarter 2023, down 23% compared to $9.5 million in the third quarter 2022. Clinical Solutions revenue was $0.6 million, down 35% compared to $0.9 million in the third quarter 2022.
Gross profit for the third quarter 2023 was $1.5 million, compared to $4.8 million in the third quarter 2022. Gross margin for the third quarter 2023 was 18.0%, compared to 44.6% in the third quarter 2022. The decrease in gross profit percentage was driven primarily by the decrease in revenue and the associated lower absorption of fixed manufacturing costs, and to a lesser extent by increased overhead costs, which were partially offset by reduced headcount.
Operating expenses for the third quarter 2023 were $10.2 million, compared to $27.7 million in the third quarter 2022. Excluding the non-recurring, non-cash charges of $0.4 million in the third quarter 2023 related to the write-off of ATM Facility offering costs and the $16.6 million goodwill impairment charge recorded in the third quarter 2022, operating expenses were down $1.3 million in the third quarter 2023 compared to the third quarter 2022. The decrease was driven primarily by reduced headcount and spending, in particular in professional fees.
Net loss for the third quarter 2023 was $10.2 million, or negative $0.34 per diluted share, compared to $22.5 million, or negative $0.80 per diluted share, for the third quarter 2022.
Adjusted EBITDA for the third quarter 2023 was negative $5.5 million, compared to negative $4.6 million for the third quarter 2022. Free Cash Flow was negative $5.4 million for the third quarter 2023, compared to negative $14.9 million for the third quarter 2022.
2023 Outlook
Teknova now anticipates that revenue will be at the low end of its $37 million to $40 million guidance range for the fiscal year ending December 31, 2023 (“2023”). The Company now anticipates free cash outflow to be less than its previously communicated target of $30 million for 2023.
2
Upcoming Investor Conference Presentations
Stephens Annual Investment Conference
Wednesday, November 15th, 2023 at 4:00 p.m. ET
35th Annual Piper Sandler Healthcare Conference
Wednesday, November 29th, 2023 at 8:30 a.m. ET
Conference Call and Webcast
Teknova will host a webcast and conference call on Thursday, November 9, 2023, beginning at 5:30 p.m. ET. Participants can access the live webcast on the Investor Relations section of the Teknova website and at this link: https://edge.media-server.com/mmc/p/nsccw7hr. To receive a PIN for dialing in, participants can register for the webcast via this link: https://register.vevent.com/register/BI43a2f4610cbe41f5b78f7d61007caf37. The webcast will be available for replay on the Company’s website approximately two hours after the event.
About Teknova
Teknova makes solutions possible. Since 1996, Teknova has been innovating the manufacture of critical reagents for the life sciences industry to accelerate the discovery and development of novel therapies that will help people live longer, healthier lives. We offer fully customizable solutions for every stage of the workflow, supporting industry leaders in cell and gene therapy, molecular diagnostics, and synthetic biology. Our fast turnaround of high-quality agar plates, microbial culture media, buffers, reagents, and water helps our customers scale seamlessly from RUO to GMP. Headquartered in Hollister, California, with over 200,000 square feet of state-of-the-art facilities, Teknova’s modular manufacturing platform was designed by our team of scientists, engineers, and quality control experts to efficiently produce the foundational ingredients for the discovery and commercialization of novel therapies.
Non-GAAP Financial Measures
This press release contains financial measures that have not been calculated in accordance with U.S. generally accepted accounting principles (GAAP). Teknova uses the following non-GAAP financial measures in assessing the performance of its business and the effectiveness of its business strategies: (a) Adjusted EBITDA and (b) Free Cash Flow.
Teknova defines Adjusted EBITDA as net loss adjusted for interest income (expense), net, provision for (benefit from) income taxes, depreciation expense, amortization of intangible assets, and stock-based compensation expense. Adjusted EBITDA reflects further adjustments to eliminate the impact of certain items, including certain non-cash and other items that Teknova does not consider representative of its ongoing operating performance.
3
Teknova defines Free Cash Flow as cash used in operating activities less purchases of property, plant, and equipment.
Teknova provides Adjusted EBITDA and Free Cash Flow in this press release because Teknova believes that analysts, investors, and other interested parties frequently use these measures to evaluate companies in Teknova’s industry and that such measures facilitate comparisons on a consistent basis across reporting periods. Teknova also believes such measures are helpful in highlighting trends in Teknova’s operating results because they exclude items that are not indicative of Teknova’s core operating performance. Investors should consider non-GAAP financial measures in addition to, and not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. The non-GAAP financial measures presented by Teknova may be different from the non-GAAP financial measures used by other companies.
A full reconciliation of these non-GAAP measures to the most comparable GAAP measures is included at the end of this release.
Forward-Looking Statements
Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements.” These statements include, but are not limited to, statements relating to Teknova’s anticipated total revenue, including our expectations for 2023 revenue and free cash outflow guidance, expected growth in Lab Essentials and Clinical Solutions, ongoing capacity expansion, new research and development products, prospects, including to achieve profitability, strategy of managing operating expenses, and long-term growth strategy. The words, without limitation, “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these or similar identifying words. These forward-looking statements are based on management’s current expectations and beliefs and are subject to uncertainties and factors, all of which are difficult to predict and many of which are beyond Teknova’s control and could cause actual results to differ materially and adversely from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to, demand for Teknova’s products (including the potential delay or pausing of customer orders); Teknova’s assessment of fundamental indicators of future demand across its target customer base; Teknova’s ability to expand its production, commercial, and research and development capabilities; Teknova’s cash flows and revenue growth rate; Teknova’s supply chain, sourcing, manufacturing, and warehousing; inventory management; risks related to global economic and marketplace uncertainties, including those related to the lingering impacts of the COVID-19 pandemic and the conflicts in Ukraine and the Middle East; reliance on a limited number of customers for a high percentage of Teknova’s revenue; potential acquisitions and integration of other companies; and other factors discussed in the “Risk Factors” section of Teknova’s most recent periodic reports filed with the Securities and Exchange Commission (“SEC”), including in Teknova’s Annual Report on Form 10-K for the year ended December 31, 2022, and subsequent Quarterly Reports on Form
4
10-Q filed with the SEC, all of which you may obtain for free on the SEC’s website at www.sec.gov. Although Teknova believes that the expectations reflected in its forward-looking statements are reasonable, Teknova does not know whether its expectations will prove correct. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, even if subsequently made available by Teknova on its website or otherwise. Teknova does not undertake any obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Investor Contacts Media Contact
Matt Lowell Jennifer Henry
Chief Financial Officer Senior Vice President, Marketing
matt.lowell@teknova.com jenn.henry@teknova.com
+1 831-637-1100 +1 831-313-1259
Sara Michelmore
MacDougall Advisors
smichelmore@macdougall.bio
+1 781-235-3060
5
ALPHA TEKNOVA, INC.
Condensed Statements of Operations
(Unaudited)
(In thousands, except share and per share data)
|
|
For the Three Months Ended |
|
|
For the Nine Months Ended |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Revenue |
|
$ |
8,169 |
|
|
$ |
10,692 |
|
|
$ |
28,817 |
|
|
$ |
33,529 |
|
Cost of sales |
|
|
6,697 |
|
|
|
5,922 |
|
|
|
19,856 |
|
|
|
18,163 |
|
Gross profit |
|
|
1,472 |
|
|
|
4,770 |
|
|
|
8,961 |
|
|
|
15,366 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Research and development |
|
|
1,397 |
|
|
|
1,925 |
|
|
|
4,256 |
|
|
|
5,867 |
|
Sales and marketing |
|
|
2,412 |
|
|
|
2,397 |
|
|
|
6,929 |
|
|
|
6,592 |
|
General and administrative |
|
|
6,138 |
|
|
|
6,502 |
|
|
|
19,426 |
|
|
|
20,856 |
|
Amortization of intangible assets |
|
|
287 |
|
|
|
287 |
|
|
|
860 |
|
|
|
861 |
|
Long-lived assets impairment |
|
|
— |
|
|
|
— |
|
|
|
2,195 |
|
|
|
— |
|
Goodwill impairment |
|
|
— |
|
|
|
16,613 |
|
|
|
— |
|
|
|
16,613 |
|
Total operating expenses |
|
|
10,234 |
|
|
|
27,724 |
|
|
|
33,666 |
|
|
|
50,789 |
|
Loss from operations |
|
|
(8,762 |
) |
|
|
(22,954 |
) |
|
|
(24,705 |
) |
|
|
(35,423 |
) |
Other (expenses) income, net |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest (expense) income, net |
|
|
(791 |
) |
|
|
70 |
|
|
|
(1,006 |
) |
|
|
85 |
|
Loss on extinguishment of debt |
|
|
(824 |
) |
|
|
— |
|
|
|
(824 |
) |
|
|
— |
|
Other income, net |
|
|
233 |
|
|
|
36 |
|
|
|
417 |
|
|
|
36 |
|
Total other (expenses) income, net |
|
|
(1,382 |
) |
|
|
106 |
|
|
|
(1,413 |
) |
|
|
121 |
|
Loss before income taxes |
|
|
(10,144 |
) |
|
|
(22,848 |
) |
|
|
(26,118 |
) |
|
|
(35,302 |
) |
Provision for (benefit from) income taxes |
|
|
9 |
|
|
|
(374 |
) |
|
|
6 |
|
|
|
(1,128 |
) |
Net loss |
|
$ |
(10,153 |
) |
|
$ |
(22,474 |
) |
|
$ |
(26,124 |
) |
|
$ |
(34,174 |
) |
Net loss per share—basic and diluted |
|
$ |
(0.34 |
) |
|
$ |
(0.80 |
) |
|
$ |
(0.91 |
) |
|
$ |
(1.22 |
) |
Weighted average shares used in computing net loss per share—basic and diluted |
|
|
29,956,930 |
|
|
|
28,090,267 |
|
|
|
28,810,068 |
|
|
|
28,059,897 |
|
6
ALPHA TEKNOVA, INC.
Condensed Balance Sheets
(Unaudited)
(In thousands)
|
|
As of September 30, |
|
|
As of December 31, |
|
||
|
|
2023 |
|
|
2022 |
|
||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
32,079 |
|
|
$ |
42,236 |
|
Accounts receivable, net |
|
|
5,160 |
|
|
|
4,261 |
|
Inventories, net |
|
|
11,468 |
|
|
|
12,247 |
|
Income taxes receivable |
|
|
— |
|
|
|
22 |
|
Prepaid expenses and other current assets |
|
|
2,371 |
|
|
|
2,374 |
|
Total current assets |
|
|
51,078 |
|
|
|
61,140 |
|
Property, plant, and equipment, net |
|
|
51,579 |
|
|
|
51,577 |
|
Operating right-of-use lease assets |
|
|
17,080 |
|
|
|
19,736 |
|
Intangible assets, net |
|
|
16,696 |
|
|
|
17,556 |
|
Other non-current assets |
|
|
1,952 |
|
|
|
2,252 |
|
Total assets |
|
$ |
138,385 |
|
|
$ |
152,261 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
1,422 |
|
|
$ |
2,449 |
|
Accrued liabilities |
|
|
5,147 |
|
|
|
6,203 |
|
Current portion of operating lease liabilities |
|
|
1,770 |
|
|
|
2,223 |
|
Total current liabilities |
|
|
8,339 |
|
|
|
10,875 |
|
Deferred tax liabilities |
|
|
1,228 |
|
|
|
1,223 |
|
Other accrued liabilities |
|
|
125 |
|
|
|
191 |
|
Long-term debt, net |
|
|
13,168 |
|
|
|
21,976 |
|
Long-term operating lease liabilities |
|
|
15,873 |
|
|
|
18,111 |
|
Total liabilities |
|
|
38,733 |
|
|
|
52,376 |
|
Stockholders’ equity: |
|
|
|
|
|
|
||
Preferred stock |
|
|
— |
|
|
|
— |
|
Common stock |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
180,782 |
|
|
|
154,891 |
|
Accumulated deficit |
|
|
(81,130 |
) |
|
|
(55,006 |
) |
Total stockholders’ equity |
|
|
99,652 |
|
|
|
99,885 |
|
Total liabilities and stockholders’ equity |
|
$ |
138,385 |
|
|
$ |
152,261 |
|
7
ALPHA TEKNOVA, INC.
Condensed Statements of Cash Flows
(Unaudited)
(In thousands)
|
|
For the Three Months Ended |
|
|
For the Nine Months Ended |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss |
|
$ |
(10,153 |
) |
|
$ |
(22,474 |
) |
|
$ |
(26,124 |
) |
|
$ |
(34,174 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Bad debt expense |
|
|
13 |
|
|
|
2 |
|
|
|
21 |
|
|
|
34 |
|
Inventory reserve |
|
|
97 |
|
|
|
186 |
|
|
|
130 |
|
|
|
178 |
|
Depreciation and amortization |
|
|
1,622 |
|
|
|
729 |
|
|
|
4,049 |
|
|
|
2,272 |
|
Stock-based compensation |
|
|
1,035 |
|
|
|
968 |
|
|
|
3,115 |
|
|
|
2,689 |
|
Deferred taxes |
|
|
9 |
|
|
|
(374 |
) |
|
|
5 |
|
|
|
(1,125 |
) |
Amortization of debt financing costs |
|
|
205 |
|
|
|
60 |
|
|
|
415 |
|
|
|
159 |
|
Non-cash lease expense |
|
|
55 |
|
|
|
75 |
|
|
|
86 |
|
|
|
256 |
|
Loss on disposal of property, plant, and equipment |
|
|
5 |
|
|
|
210 |
|
|
|
5 |
|
|
|
210 |
|
Long-lived assets impairment |
|
|
— |
|
|
|
— |
|
|
|
2,195 |
|
|
|
— |
|
Goodwill impairment |
|
|
— |
|
|
|
16,613 |
|
|
|
— |
|
|
|
16,613 |
|
Loss on extinguishment of debt |
|
|
824 |
|
|
|
— |
|
|
|
824 |
|
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accounts receivable |
|
|
(402 |
) |
|
|
227 |
|
|
|
(721 |
) |
|
|
(949 |
) |
Contract assets |
|
|
1,050 |
|
|
|
(667 |
) |
|
|
— |
|
|
|
(667 |
) |
Inventories |
|
|
453 |
|
|
|
(2,600 |
) |
|
|
649 |
|
|
|
(5,107 |
) |
Income taxes receivable |
|
|
22 |
|
|
|
(3 |
) |
|
|
22 |
|
|
|
1,068 |
|
Prepaid expenses and other current assets |
|
|
(1,736 |
) |
|
|
(1,820 |
) |
|
|
(694 |
) |
|
|
(1,083 |
) |
Other non-current assets |
|
|
78 |
|
|
|
(407 |
) |
|
|
300 |
|
|
|
(996 |
) |
Accounts payable |
|
|
414 |
|
|
|
1,247 |
|
|
|
(948 |
) |
|
|
969 |
|
Accrued liabilities |
|
|
2,049 |
|
|
|
(283 |
) |
|
|
815 |
|
|
|
343 |
|
Other |
|
|
(22 |
) |
|
|
(21 |
) |
|
|
(66 |
) |
|
|
(61 |
) |
Cash used in operating activities |
|
|
(4,382 |
) |
|
|
(8,332 |
) |
|
|
(15,922 |
) |
|
|
(19,371 |
) |
Investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Purchase of property, plant, and equipment |
|
|
(972 |
) |
|
|
(6,582 |
) |
|
|
(7,622 |
) |
|
|
(23,419 |
) |
Cash used in investing activities |
|
|
(972 |
) |
|
|
(6,582 |
) |
|
|
(7,622 |
) |
|
|
(23,419 |
) |
Financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Proceeds from equity financing |
|
|
22,915 |
|
|
|
— |
|
|
|
22,915 |
|
|
|
— |
|
Repayment of long-term debt |
|
|
(10,000 |
) |
|
|
— |
|
|
|
(10,000 |
) |
|
|
— |
|
Proceeds from financed insurance premiums |
|
|
1,004 |
|
|
|
— |
|
|
|
1,004 |
|
|
|
— |
|
Repayment of financed insurance premiums |
|
|
(294 |
) |
|
|
— |
|
|
|
(294 |
) |
|
|
— |
|
Proceeds from long-term debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,135 |
|
Payment of debt issuance costs |
|
|
— |
|
|
|
— |
|
|
|
(24 |
) |
|
|
(151 |
) |
Payment of exit fee costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(135 |
) |
Payment of ATM Facility costs |
|
|
— |
|
|
|
— |
|
|
|
(395 |
) |
|
|
— |
|
Proceeds from exercise of stock options |
|
|
— |
|
|
|
35 |
|
|
|
76 |
|
|
|
134 |
|
Proceeds from issuance of common stock under employee stock purchase plan |
|
|
— |
|
|
|
— |
|
|
|
138 |
|
|
|
144 |
|
Cash provided by financing activities |
|
|
13,625 |
|
|
|
35 |
|
|
|
13,420 |
|
|
|
5,127 |
|
Change in cash, cash equivalents, and restricted cash |
|
|
8,271 |
|
|
|
(14,879 |
) |
|
|
(10,124 |
) |
|
|
(37,663 |
) |
Cash, cash equivalents, and restricted cash at beginning of period |
|
|
23,841 |
|
|
|
64,734 |
|
|
|
42,236 |
|
|
|
87,518 |
|
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
32,112 |
|
|
$ |
49,855 |
|
|
$ |
32,112 |
|
|
$ |
49,855 |
|
8
ALPHA TEKNOVA, INC.
Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures
(Unaudited)
(In thousands)
|
|
For the Three Months Ended |
|
|
For the Nine Months Ended |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Net loss – as reported |
|
$ |
(10,153 |
) |
|
$ |
(22,474 |
) |
|
$ |
(26,124 |
) |
|
$ |
(34,174 |
) |
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest (expense) income, net |
|
|
(791 |
) |
|
|
70 |
|
|
|
(1,006 |
) |
|
|
85 |
|
Provision for (benefit from) income taxes |
|
|
9 |
|
|
|
(374 |
) |
|
|
6 |
|
|
|
(1,128 |
) |
Depreciation expense |
|
|
1,335 |
|
|
|
442 |
|
|
|
3,189 |
|
|
|
1,411 |
|
Amortization of intangible assets |
|
|
287 |
|
|
|
287 |
|
|
|
860 |
|
|
|
861 |
|
EBITDA |
|
$ |
(7,731 |
) |
|
$ |
(22,189 |
) |
|
$ |
(21,063 |
) |
|
$ |
(33,115 |
) |
Other and non-recurring expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Stock-based compensation expense |
|
|
1,035 |
|
|
|
968 |
|
|
|
3,115 |
|
|
|
2,689 |
|
Severance pay and other termination benefits |
|
|
— |
|
|
|
— |
|
|
|
725 |
|
|
|
— |
|
Long-lived assets impairment |
|
|
— |
|
|
|
— |
|
|
|
2,195 |
|
|
|
— |
|
Goodwill impairment |
|
|
— |
|
|
|
16,613 |
|
|
|
— |
|
|
|
16,613 |
|
Loss on extinguishment of debt |
|
|
824 |
|
|
|
— |
|
|
|
824 |
|
|
|
— |
|
Write-off of ATM Facility costs |
|
|
395 |
|
|
|
— |
|
|
|
395 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
(5,477 |
) |
|
$ |
(4,608 |
) |
|
$ |
(13,809 |
) |
|
$ |
(13,813 |
) |
|
|
For the Three Months Ended |
|
|
For the Nine Months Ended |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Cash used in operating activities |
|
$ |
(4,382 |
) |
|
$ |
(8,332 |
) |
|
$ |
(15,922 |
) |
|
$ |
(19,371 |
) |
Purchase of property, plant, and equipment |
|
|
(972 |
) |
|
|
(6,582 |
) |
|
|
(7,622 |
) |
|
|
(23,419 |
) |
Free Cash Flow |
|
$ |
(5,354 |
) |
|
$ |
(14,914 |
) |
|
$ |
(23,544 |
) |
|
$ |
(42,790 |
) |
9