8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 11, 2020

 

 

10x Genomics, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-39035   45-5614458

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

6230 Stoneridge Mall Road

Pleasanton, California 94588

(925) 401-7300

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

 

 

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

 

Name of each exchange

on which registered

Class A common stock, par value $0.00001 per share   TXG   The Nasdaq Stock Market LLC

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

Emerging growth company  ☒

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

 

 

 


Item 2.02 Results of Operations and Financial Condition.

On May 11, 2020, 10x Genomics, Inc. (the “Company”) issued a press release announcing the Company’s financial results for the quarter ended March 31, 2020. A copy of the press release is attached hereto as Exhibit 99.1.

The information furnished pursuant to Item 2.02 in this Current Report on Form 8-K and the press release attached as Exhibit 99.1 hereto 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 into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

 

(d)

Exhibits.

 

Exhibit No.

  

Description of Exhibits

99.1    Press Release, dated May 11, 2020.


Signatures

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.

 

10x Genomics, Inc.
By:  

/s/ Eric S. Whitaker

Name:   Eric S. Whitaker
Title:   General Counsel

Date: May 11, 2020

EX-99.1

Exhibit 99.1

 

LOGO

10x Genomics Reports First Quarter 2020 Financial Results

PLEASANTON, Calif. May 11, 2020 – 10x Genomics, Inc. (Nasdaq: TXG) today reported financial results for the quarter ended March 31, 2020.

Recent Highlights

 

   

Revenue of $71.9 million for the first quarter, representing a 34% increase over the corresponding period of 2019

 

   

Announced a broad range of new products and new capabilities at the Advances in Genome Biology and Technology (AGBT) Meeting in February

 

   

Began shipping and completed initial placements of the Chromium Connect instrument

“We are doing all we can to support our customers as they race to understand and fight the COVID-19 pandemic,” said Serge Saxonov, Co-founder and CEO of 10x Genomics. “Despite the temporary uncertainty in the macro environment, we see tremendous opportunities ahead. Our mission to accelerate the mastery of biology is more important now than it has ever been, and I am confident that the future holds an even greater appreciation and appetite for scientific discovery.”

First Quarter 2020 Financial Results

Revenue was $71.9 million for the three months ended March 31, 2020, a 34% increase from $53.6 million for the three months ended March 31, 2019.

Gross margin was 79% for the first quarter of 2020, as compared to 74% for the corresponding prior year period. The increase in gross margin was driven primarily by lower accrued royalties related to ongoing litigation.

Operating expenses were $76.7 million for the first quarter of 2020, an 80% increase from $42.6 million for the three months ended March 31, 2019, primarily due to increases in expenses related to ongoing litigation, personnel-related expenses and stock-based compensation.

Operating loss was $19.9 million for the first quarter of 2020, as compared to $3.0 million for the corresponding prior year period. This includes $6.7 million of stock-based compensation for the first quarter of 2020, as compared to $1.4 million for the first quarter of 2019.

Net loss was $21.1 million for the first quarter of 2020, as compared to a net loss of $3.6 million for the corresponding prior year period.

Cash and cash equivalents were $372.4 million as of March 31, 2020. Our cash balance at quarter end includes the impact of the repayment in full of our term loan borrowings with Silicon Valley Bank totaling $31 million.

On April 9, 2020, 10x withdrew its annual revenue guidance for 2020 due to the evolving environment and continued uncertainties from the impact of COVID-19. The COVID-19 pandemic is a highly fluid situation and it is not currently possible for the Company to reasonably estimate the impact it may have on financial and operating results.

 

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LOGO

 

Webcast and Conference Call Information

10x Genomics will host a conference call to discuss the first quarter 2020 financial results, business developments and outlook after market close on Monday, May 11 at 1:30 PM Pacific Time / 4:30 PM Eastern Time. A webcast of the conference call can be accessed at http://investors.10xGenomics.com. The webcast will be archived and available for replay at least 45 days after the event.

About 10x Genomics

10x Genomics is a life science technology company building products to interrogate, understand and master biology to advance human health. The company’s integrated solutions include instruments, consumables and software for analyzing biological systems at a resolution and scale that matches the complexity of biology. 10x Genomics products have been adopted by researchers around the world including 97 of the top 100 global research institutions and 19 of the top 20 global pharmaceutical companies, and have been cited in over 860 research papers on discoveries ranging from oncology to immunology and neuroscience. The company’s patent portfolio comprises more than 740 issued patents and patent applications.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negatives of these terms or variations of them or similar terminology. These forward-looking statements include statements regarding 10x Genomics, Inc.’s expectations regarding the potential impact of the COVID-19 outbreak on the company’s business operations, financial performance and results of operations as well as the company’s ability to meet its anticipated cash needs for the foreseeable future. These statements are based on management’s current expectations, forecasts, beliefs, assumptions and information currently available to management, and actual outcomes and results could differ materially from these statements due to a number of factors. These and additional risks and uncertainties that could affect 10x Genomics, Inc.’s financial and operating results and cause actual results to differ materially from those indicated by the forward-looking statements made in this press release include those discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in the documents 10x Genomics, Inc. files with the Securities and Exchange Commission from time to time. The forward-looking statements in this press release are based on information available to 10x Genomics, Inc. as of the date hereof, and 10x Genomics, Inc. disclaims any obligation to update any forward-looking statements provided to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. These forward-looking statements should not be relied upon as representing 10x Genomics, Inc.’s views as of any date subsequent to the date of this press release.

Disclosure Information

10x Genomics uses filings with the Securities and Exchange Commission, its website (www.10xgenomics.com), press releases, public conference calls, public webcasts and its social media accounts as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

Contacts

Investors: [email protected]

Media: [email protected]

 

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LOGO

 

10x Genomics, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

(In thousands, except share and per share data)

 

     Three Months Ended
March 31,
 
     2020     2019  

Revenue

   $ 71,905     $ 53,578  

Cost of revenue (1)

     15,108       13,965  
  

 

 

   

 

 

 

Gross profit

     56,797       39,613  

Operating expenses:

    

Research and development (1)

     25,992       14,965  

Selling, general and administrative (1)

     50,387       26,893  

Accrued contingent liabilities

     302       790  
  

 

 

   

 

 

 

Total operating expenses

     76,681       42,648  
  

 

 

   

 

 

 

Loss from operations

     (19,884     (3,035

Other income (expense):

    

Interest income

     1,318       263  

Interest expense

     (662     (684

Other expenses, net

     (96     (146

Loss on extinguishment of debt

     (1,521     —    
  

 

 

   

 

 

 

Total other expense

     (961     (567
  

 

 

   

 

 

 

Loss before provision for income taxes

     (20,845     (3,602

Provision for income taxes

     298       34  
  

 

 

   

 

 

 

Net loss

   $ (21,143   $ (3,636
  

 

 

   

 

 

 

Other comprehensive income (loss):

    

Foreign currency translation adjustment

     5       (24
  

 

 

   

 

 

 

Comprehensive loss

   $ (21,138   $ (3,660
  

 

 

   

 

 

 

Net loss per share, basic and diluted

   $ (0.22   $ (0.25
  

 

 

   

 

 

 

Weighted-average shares of common stock used in computing net loss per share, basic and diluted

     96,829,093       14,801,867  
  

 

 

   

 

 

 

 

(1)

Includes stock-based compensation expense as follows:

 

     Three months ended March 31,  
(in thousands)    2020      2019  

Cost of revenue

   $ 247      $ 32  

Research and development

     2,887        507  

Selling, general and administrative

     3,584        820  
  

 

 

    

 

 

 

Total stock-based compensation expense

   $ 6,718      $ 1,359  
  

 

 

    

 

 

 

 

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10x Genomics, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except share and per share data)

 

     March 31,
2020
    December 31,
2019
 

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 372,428     $ 424,166  

Accounts receivable, net

     30,851       33,371  

Inventory

     19,357       15,270  

Prepaid expenses and other current assets

     7,096       8,033  
  

 

 

   

 

 

 

Total current assets

     429,732       480,840  

Property and equipment, net

     52,384       48,821  

Restricted cash

     59,475       52,327  

Operating lease right-of-use assets

     44,048       —    

Other assets

     24,745       23,935  
  

 

 

   

 

 

 

Total assets

   $ 610,384     $ 605,923  
  

 

 

   

 

 

 

Liabilities and stockholders’s equity

    

Current liabilities:

    

Accounts payable

   $ 13,505     $ 13,028  

Accrued compensation and related benefits

     18,623       12,394  

Accrued expenses and other current liabilities

     20,093       24,448  

Term loans, current portion

     —         9,882  

Deferred revenue, current

     3,394       3,297  

Operating lease liabilities

     3,453       —    
  

 

 

   

 

 

 

Total current liabilities

     59,068       63,049  

Term loans, noncurrent portion

           19,837  

Accrued contingent liabilities

     73,314       68,658  

Accrued license fee, noncurrent

     11,223       16,251  

Deferred rent, noncurrent

     —         16,120  

Operating lease liabilities, noncurrent

     56,166       —    

Other noncurrent liabilities

     1,545       1,925  
  

 

 

   

 

 

 

Total liabilities

     201,316       185,840  
  

 

 

   

 

 

 

Commitments and contingencies

    

Stockholders’ equity:

    

Preferred stock, $0.00001 par value; 100,000,000 shares authorized, no shares issued and outstanding as of March 31, 2020 and December 31, 2019

     —         —    

Common stock, $0.00001 par value; 1,100,000,000 shares authorized and 98,145,208 shares issued and outstanding as of March 31, 2020; 1,100,000,000 shares authorized and 96,241,596 shares issued and outstanding as of December 31, 2019

     2       2  

Additional paid-in capital

     692,617       682,494  

Accumulated deficit

     (283,510     (262,367

Accumulated other comprehensive loss

     (41     (46
  

 

 

   

 

 

 

Total stockholders’ equity

     409,068       420,083  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 610,384     $ 605,923  
  

 

 

   

 

 

 

 

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