Adaptive Biotechnologies Corp

Previous wording

We recognized revenue of $43.2 million and $48.9 million for the three months ended June 30, 2024 and 2023, respectively, and $85.1 million and $86.6 million for the six months ended June 30, 2024 and 2023, respectively. Net loss attributable to Adaptive Biotechnologies Corporation was $46.2 million and $47.8 million for the three months ended June 30, 2024 and 2023, respectively, and $93.7 million and $105.5 million for the six months ended June 30, 2024 and 2023, respectively. We have funded our operations to date principally from the sale of convertible preferred stock and common stock and, to a lesser extent, revenue and proceeds from the revenue interest purchase agreement we entered into in September 2022 with OrbiMed Royalty & Credit Opportunities IV, LP, an affiliate of OrbiMed Advisors LLC, as collateral agent and administrative agent for the purchasers party thereto (the “Purchase Agreement”). As of June 30, 2024 and December 31, 2023, we had cash, cash equivalents and marketable securities of $291.9 million and $346.4 million, respectively.

Current wording

We recognized revenue of $46.4 million and $37.9 million for the three months ended September 30, 2024 and 2023, respectively, and $131.5 million and $124.5 million for the nine months ended September 30, 2024 and 2023, respectively. Net loss attributable to Adaptive Biotechnologies Corporation was $32.1 million and $50.3 million for the three months ended September 30, 2024 and 2023, respectively, and $125.8 million and $155.8 million for the nine months ended September 30, 2024 and 2023, respectively. We have funded our operations to date principally from the sale of convertible preferred stock and common stock and, to a lesser extent, revenue and proceeds from the revenue interest purchase agreement we entered into in September 2022 with OrbiMed Royalty & Credit Opportunities IV, LP, an affiliate of OrbiMed Advisors LLC, as collateral agent and administrative agent for the purchasers party thereto (the “Purchase Agreement”). As of September 30, 2024 and December 31, 2023, we had cash, cash equivalents and marketable securities of $267.2 million and $346.4 million, respectively.

Previous wording

During the six months ended June 30, 2024, we implemented various restructuring plans which better aligned our organization to our two operating segments, impacted certain planned software enhancements and resulted in the consolidation of certain research and development workflows. The software enhancements were primarily associated with our laboratory information management systems. As part of these restructurings, we reduced our workforce, had long-lived assets that were no longer being utilized and vacated certain leased space in South San Francisco, California. As such, we recognized restructuring costs of $7.9 million and $8.9 million during the three and six months ended June 30, 2024, respectively, of which $7.2 million related to impairment charges. The activities related to these restructurings were primarily completed as of June 30, 2024.

Current wording

During the nine months ended September 30, 2024, we implemented various restructuring plans which better aligned our organization to our two operating segments, impacted certain planned software enhancements and resulted in the consolidation of certain research and development workflows, among other things. The software enhancements were primarily associated with our laboratory information management systems. As part of these restructurings, we reduced our workforce, had long-lived assets that were no longer being utilized and vacated certain leased space in South San Francisco, California. As such, we recognized restructuring costs of $0.2 million and $9.1 million during the three and nine months ended September 30, 2024, respectively. Of the $9.1 million restructuring costs recognized, $7.2 million related to impairment charges. The activities related to these restructurings were primarily completed as of September 30, 2024 and are expected to be fully complete as of December 31, 2024.

Previous wording

We expect our Immune Medicine revenue to decrease in the short term primarily due to our expected reduction in revenue generated from the Genentech Agreement. Over the long term, we expect our Immune Medicine revenue to increase as we or our collaborators advance therapies to commercialization. Our Immune Medicine revenue may fluctuate from period to period due to the timing of expenses incurred, changes in estimates of total anticipated costs related to the Genentech Agreement and other events not within our control, including the recognition of milestones under the Genentech Agreement and the timing of receipt of customer samples from our biopharmaceutical customers.

Current wording

We expect our Immune Medicine revenue to increase in the long term as we or our collaborators advance therapies to commercialization. Our Immune Medicine revenue may fluctuate from period to period due to the timing of expenses incurred, changes in estimates of total anticipated costs related to the Genentech Agreement and other events not within our control, including the recognition of milestones under the Genentech Agreement and the timing of receipt of customer samples from our biopharmaceutical customers.

Previous wording

We expect general and administrative expenses to experience moderate increases in the short term and to decrease as a percentage of revenue in the long term.

Current wording

We expect general and administrative expenses to remain relatively consistent in the short term and to decrease as a percentage of revenue in the long term.

Previous wording

The $9.4 million increase in MRD revenue was primarily due to a $7.2 million increase in revenue generated from providing clonoSEQ to clinical customers, a $3.0 million increase in revenue recognized upon the achievement of regulatory milestones by one of our biopharmaceutical customers and a $0.2 million increase in revenue generated from providing MRD sample testing services to biopharmaceutical customers. These increases were partially offset by a $0.8 million decrease in revenue generated from providing MRD sample testing services to investigator-led clinical trials. Our clonoSEQ test volume increased by 36% to 18,520 tests delivered in the three months ended June 30, 2024 from 13,665 tests delivered in the three months ended June 30, 2023.

Current wording

The $12.8 million increase in MRD revenue was primarily due to a $5.6 million increase in revenue generated from providing clonoSEQ to clinical customers, a $5.0 million increase in revenue recognized upon the achievement of certain regulatory milestones by one of our biopharmaceutical customers, a $2.0 million increase in revenue generated from providing MRD sample testing services to biopharmaceutical customers and a $0.4 million increase in revenue generated from providing MRD sample testing services to investigator-led clinical trials. Our clonoSEQ test volume increased by 30% to 19,600 tests delivered in the three months ended September 30, 2024 from 15,072 tests delivered in the three months ended September 30, 2023.

Previous wording

The $15.1 million decrease in Immune Medicine revenue was primarily due to a $15.7 million decrease in revenue generated from the Genentech Agreement, which resulted from decreased collaboration expenses and decreased revenue recognized from the $10.0 million regulatory milestone achieved in May 2023, partially offset by a $0.6 million increase in revenue generated from our biopharmaceutical and academic customers.

Current wording

The $4.3 million decrease in Immune Medicine revenue was primarily due to a $4.5 million decrease in revenue generated from the Genentech Agreement, which resulted from decreased collaboration expenses, partially offset by a $0.2 million increase in revenue generated from our biopharmaceutical and academic customers.

Previous wording

The $0.8 million increase in cost of revenue was primarily attributable to a $2.4 million increase in cost of materials, $1.7 million of which resulted from increased revenue sample volume and $0.7 million of which was primarily related to an increase in inventory reserve expense. There was also a $1.2 million increase related to higher usage of our production laboratory to process revenue samples versus research and development samples and a $0.6 million increase in shipping and handling expenses. These increases were partially offset by a $4.0 million decrease in overhead costs, which was largely driven by reduced headcount and laboratory relocation and consolidation activities.

Current wording

The $2.7 million decrease in cost of revenue was primarily attributable to a $4.0 million decrease in labor and overhead costs, which was largely driven by laboratory relocation and consolidation activities, a $0.3 million decrease in cost of materials primarily due to a reduction in inventory reserve expenseand a $0.2 million decrease in shipping and handling expenses. These decreases were partially offset by a $1.3 million increase related to higher usage of our production laboratory to process revenue samples versus research and development samples and a $0.7 million increase in materials cost resulting from increased revenue sample volume.

Previous wording

The $3.6 million decrease in sales and marketing expenses was primarily attributable to a $3.0 million decrease in personnel costs, driven primarily by reduced headcount, and a $0.9 million decrease in marketing expenses, which was largely driven by reduced clonoSEQ marketing activities. These decreases were partially offset by a $0.7 million increase in computer and software expenses.

Current wording

The $0.1 million increase in sales and marketing expenses was primarily attributable to a $0.6 million increase in computer and software expenses and a $0.4 million increase in allocated overhead expenses. These increases were partially offset by a $0.5 million decrease in personnel costs and a $0.4 million decrease in marketing expenses, which was largely driven by reduced clonoSEQ and research marketing activities.

Previous wording

The $4.4 million decrease in general and administrative expenses was primarily attributable to a $2.8 million decrease in personnel costs, driven primarily by reduced headcount, a $0.7 million decrease in building, facility and depreciation related expenses driven largely by office space transitions made to support laboratory consolidation activities, a $0.5 million decrease in consultant costs, a $0.3 million decrease in insurance costs, a $0.3 million decrease in computer and software expenses and a $0.3 million decrease in accounting and legal fees. These decreases were partially offset by a $0.6 million increase in third-party billing service fees.

Current wording

The $2.8 million decrease in general and administrative expenses was primarily attributable to a $1.2 million decrease in personnel costs, a $0.6 million decrease in building, facility, overhead and depreciation related expenses largely driven by office space transitions made to support laboratory consolidation activities and a $0.4 million decrease in legal fees. These decreases were partially offset by a $0.3 million increase in third-party billing service fees.

Previous wording

The $1.4 million increase in interest and other income, net was primarily attributable to an increase in net interest income and investment amortization driven by increased interest rates and related yields of our invested cash and cash equivalents and marketable securities.

Current wording

The $0.8 million decrease in interest and other income, net was primarily attributable to a decrease in net interest income and investment amortization driven by decreased interest rates and related yields of our invested cash and cash equivalents and marketable securities.

Previous wording

The $0.9 million decrease in interest expense was attributable to a change in our assumptions regarding the timeframe in which our Purchase Agreement will be fully repaid.

Current wording

The $0.7 million decrease in interest expense was attributable to a change in our assumptions regarding the timeframe in which our Purchase Agreement will be fully repaid.

Previous wording

(1)Adjusted EBITDA is a non-GAAP financial measure. See “Adjusted EBITDA” below for an explanation for how it is calculated and used by management.

Current wording

(1)Adjusted EBITDA is a non-GAAP financial measure. See “Adjusted EBITDA” below for an explanation of how it is calculated and used by management.

Previous wording

The $7.8 million increase in Immune Medicine Adjusted EBITDA deficit was primarily attributable to a $22.1 million reduction in Immune Medicine revenue, which was partially offset by a reduction in operating expenses, excluding those identified as reconciling items between net loss and adjusted EBITDA. The primary driver of this reduction relates to research and development activities.

Current wording

The $0.2 million increase in Immune Medicine Adjusted EBITDA deficit was primarily attributable to a $4.3 million reduction in Immune Medicine revenue, which was largely offset by a reduction in operating expenses, excluding those identified as reconciling items between net loss and adjusted EBITDA. The primary drivers of the operating expense reduction relate to research and development activities and cost of revenue activities.

Previous wording

The $20.6 million increase in MRD revenue was primarily due to a $13.1 million increase in revenue generated from providing clonoSEQ to clinical customers, a $7.5 million increase in revenue recognized upon the achievement of regulatory milestones by our biopharmaceutical customers and a $1.6 million increase in revenue generated from providing MRD sample testing services to biopharmaceutical customers. These increases were partially offset by a $1.5 million decrease in revenue generated from providing MRD sample testing services to investigator-led clinical trials. Our clonoSEQ test volume increased by 38% to 35,560 tests delivered in the six months ended June 30, 2024 from 25,744 tests delivered in the six months ended June 30, 2023.

Current wording

The $33.4 million increase in MRD revenue was primarily due to a $18.7 million increase in revenue generated from providing clonoSEQ to clinical customers, a $12.5 million increase in revenue recognized upon the achievement of regulatory milestones by our biopharmaceutical customers and a $3.5 million increase in revenue generated from providing MRD sample testing services to biopharmaceutical customers. These increases were partially offset by a $1.1 million decrease in revenue generated from providing MRD sample testing services to investigator-led clinical trials. Our clonoSEQ test volume increased by 35% to 55,160 tests delivered in the nine months ended September 30, 2024 from 40,816 tests delivered in the nine months ended September 30, 2023.

Previous wording

The $22.1 million decrease in Immune Medicine revenue was primarily due to a $20.3 million decrease in revenue generated from the Genentech Agreement, which resulted from decreased collaboration expenses and decreased revenue recognized from the $10.0 million regulatory milestone achieved in May 2023, and a $1.9 million decrease in revenue generated from our biopharmaceutical and academic customers.

Current wording

The $26.4 million decrease in Immune Medicine revenue was primarily due to a $24.7 million decrease in revenue generated from the Genentech Agreement, which resulted from decreased collaboration expenses and decreased revenue recognized from the $10.0 million regulatory milestone achieved in May 2023, and a $1.7 million decrease in revenue generated from our biopharmaceutical and academic customers.

Previous wording

The $1.4 million increase in cost of revenue was primarily attributable to a $2.4 million increase in cost of materials, $1.4 million of which was primarily related to an increase in inventory reserve expense and $1.0 million of which resulted from increased revenue sample volume. There was also a $0.9 million increase related to higher usage of our production laboratory to process revenue samples versus research and development samples and a $0.5 million increase in shipping and handling expenses. These increases were partially offset by a $2.7 million decrease in overhead costs, which was largely driven by reduced headcount and laboratory relocation and consolidation activities.

Current wording

The $1.9 million decrease in cost of revenue was primarily attributable to a $7.9 million decrease in overhead costs, which was largely driven by laboratory relocation and consolidation activities. This decrease was partially offset by a $2.8 million increase in cost of materials, $2.4 million of which resulted from increased revenue sample volume and $0.4 million of which was primarily related to an increase in inventory reserve expense, a $2.4 million increase related to higher usage of our production laboratory to process revenue samples versus research and development samples and a $0.4 million increase in shipping and handling expenses.

Previous wording

The $9.2 million decrease in research and development expenses was primarily attributable to a $4.1 million decrease in personnel costs and a $3.7 million decrease in cost of materials and allocated production laboratory expenses, which was driven primarily by decreased investments in drug discovery efforts, including collaboration efforts with Genentech, and decreased TCR-Antigen Map development activities. There was also a $1.9 million decrease in depreciation and other expenses, which was largely driven by a $1.7 million decrease in costs related to collaboration studies related to Immune Medicine. These decreases were partially offset by a $0.7 million increase in software and cloud services expenses.

Current wording

The $13.6 million decrease in research and development expenses was primarily attributable to a $7.8 million decrease in personnel costs and a $3.7 million decrease in cost of materials and allocated production laboratory expenses, which was driven primarily by decreased investments in drug discovery efforts, including collaboration efforts with Genentech, and TCR-Antigen Map development activities, partially offset by an increase in investments related to clonoSEQ. There was also a $2.7 million decrease in depreciation and other expenses, inclusive of a $1.9 million decrease in costs related to collaboration studies primarily related to Immune Medicine, and a $0.7 million decrease in allocable facilities expenses. These decreases were partially offset by a $1.3 million increase in software and cloud services expenses.

Previous wording

The $3.5 million decrease in sales and marketing expenses was primarily attributable to a $3.3 million decrease in personnel costs, driven primarily by reduced headcount. There was also a $0.8 million decrease in marketing expenses, driven largely by reduced clonoSEQ marketing activities, followed by reduced research and corporate marketing activities, respectively, a $0.7 million decrease in allocated facility costs and a $0.6 million decrease in travel and customer event related expenses. These decreases were partially offset by a $1.5 million increase in computer and software expenses.

Current wording

The $3.5 million decrease in sales and marketing expenses was primarily attributable to a $3.8 million decrease in personnel costs. There was also a $1.2 million decrease in marketing expenses, which was largely driven by reduced clonoSEQ marketing activities, followed by reduced research and corporate marketing activities, and a $0.7 million decrease in travel and customer event related expenses. These decreases were partially offset by a $2.1 million increase in computer and software expenses and a $0.4 million increase in allocated facility and overhead expenses.

Previous wording

The $5.6 million decrease in general and administrative expenses was primarily attributable to a $3.0 million decrease in personnel costs, driven primarily by reduced headcount, a $2.0 million decrease in building, facility and depreciation related expenses driven by office space transitions made to support laboratory consolidation activities, a $0.6 million decrease in insurance costs, a $0.5 million decrease in consultant costs and a $0.4 million decrease in accounting and legal fees. These decreases were partially offset by a $1.1 million increase in third-party billing service fees.

Current wording

The $8.5 million decrease in general and administrative expenses was primarily attributable to a $4.2 million decrease in personnel costs, a $2.6 million decrease in building, facility, overhead and depreciation related expenses largely driven by office space transitions made to support laboratory consolidation activities, a $1.1 million decrease in legal fees, a $0.8 million decrease in insurance costs and a $0.6 million decrease in consultant costs. These decreases were partially offset by a $1.4 million increase in third-party billing service fees.

Previous wording

The $0.2 million increase in interest and other income, net was primarily attributable to an increase in net interest income and investment amortization driven by increased interest rates and related yields of our invested cash and cash equivalents and marketable securities.

Current wording

The $0.5 million increase in interest and other income, net was primarily attributable to an increase in investment amortization driven by increased related yields of our invested cash and cash equivalents and marketable securities.

Previous wording

The $1.4 million decrease in interest expense was attributable to a change in our assumptions regarding the timeframe in which our Purchase Agreement will be fully repaid.

Current wording

The $2.2 million decrease in interest expense was attributable to a change in our assumptions regarding the timeframe in which our Purchase Agreement will be fully repaid.

Previous wording

(1)Adjusted EBITDA is a non-GAAP financial measure. See “Adjusted EBITDA” below for an explanation for how it is calculated and used by management.

Current wording

(1)Adjusted EBITDA is a non-GAAP financial measure. See “Adjusted EBITDA” below for an explanation of how it is calculated and used by management.

Previous wording

The $11.8 million reduction in MRD Adjusted EBITDA deficit was primarily attributable to a $9.4 million increase in MRD revenue and reductions in operating expenses, excluding those identified as reconciling items between net loss and adjusted EBITDA.

Current wording

The $36.4 million reduction in MRD Adjusted EBITDA deficit was primarily attributable to a $33.4 million increase in MRD revenue and a reduction in operating expenses, excluding those identified as reconciling items between net loss and adjusted EBITDA. The primary driver of the operating expense reduction relates to general and administrative activities.

Previous wording

The $8.3 million increase in Immune Medicine Adjusted EBITDA deficit was primarily attributable to a $15.1 million reduction in Immune Medicine revenue, which was partially offset by a reduction in operating expenses, excluding those identified as reconciling items between net loss and adjusted EBITDA. The primary driver of this reduction relates to research and development activities.

Current wording

The $8.0 million increase in Immune Medicine Adjusted EBITDA deficit was primarily attributable to a $26.4 million reduction in Immune Medicine revenue, which was partially offset by a reduction in operating expenses, excluding those identified as reconciling items between net loss and adjusted EBITDA. The primary driver of the operating expense reduction relates to research and development activities.

Previous wording

Adjusted EBITDA, including segment Adjusted EBITDA, has limitations as an analytical tool and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. We may in the future incur expenses similar to the adjustments we make. In particular, we expect to incur meaningful share-based compensation expense in the future. Other limitations include that Adjusted EBITDA does not reflect:

Current wording

Adjusted EBITDA, including segment Adjusted EBITDA, has limitations as an analytical tool and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. We may in the future incur expenses similar to the adjustments we make. In particular, we expect to incur meaningful share-based compensation expense in the future. Other limitations include that Adjusted EBITDA, including segment Adjusted EBITDA, does not reflect:

Previous wording

(2) Represents expenses recognized in conjunction with restructuring activities. See Note 12, Restructurings for details on our restructuring expenses.

Current wording

(2) Represents expenses recognized in conjunction with restructuring activities. See Note 12, Restructurings of the accompanying notes to the unaudited condensed consolidated financial statements included elsewhere in this report for details on our restructuring expenses.

Previous wording

We have incurred losses since inception and have incurred negative cash flows from operations since inception through June 30, 2024, with the exception of certain 2019 periods for which we had positive cash flows from operations. As of June 30, 2024, we had an accumulated deficit of $1.2 billion.

Current wording

We have incurred losses since inception and have incurred negative cash flows from operations since inception through September 30, 2024, with the exception of certain 2019 periods for which we had positive cash flows from operations. As of September 30, 2024, we had an accumulated deficit of $1.3 billion.

Previous wording

We have funded our operations to date principally from the sale of convertible preferred stock and common stock, and, to a lesser extent, revenue and proceeds from the Purchase Agreement. Pursuant to the Purchase Agreement entered into in September 2022, we received net cash proceeds of $124.4 million, after deducting issuance costs. We are also entitled to receive up to $125.0 million in subsequent installments as follows: (i) $75.0 million upon our request occurring no later than September 12, 2025 and (ii) $50.0 million upon our request in connection with certain permitted acquisitions occurring no later than September 12, 2025, in each case subject to certain funding conditions. As of June 30, 2024, we had cash, cash equivalents and marketable securities of $291.9 million.

Current wording

We have funded our operations to date principally from the sale of convertible preferred stock and common stock, and, to a lesser extent, revenue and proceeds from the Purchase Agreement. Pursuant to the Purchase Agreement entered into in September 2022, we received net cash proceeds of $124.4 million, after deducting issuance costs. We are also entitled to receive up to $125.0 million in subsequent installments as follows: (i) $75.0 million upon our request occurring no later than September 12, 2025 and (ii) $50.0 million upon our request in connection with certain permitted acquisitions occurring no later than September 12, 2025, in each case subject to certain funding conditions. As of September 30, 2024, we had cash, cash equivalents and marketable securities of $267.2 million.

Previous wording

We plan to utilize the existing cash, cash equivalents and marketable securities on hand primarily to fund our commercial and marketing activities associated with clonoSEQ, our continued investments in streamlining our laboratory operations and our continued research and development initiatives related to drug discovery. Cash in excess of immediate requirements is invested in accordance with our investment policy, primarily with a view to capital preservation and liquidity. Currently, our funds are held in money market funds and marketable securities consisting of U.S. government treasury securities, commercial paper and corporate bonds.

Current wording

We plan to utilize the existing cash, cash equivalents and marketable securities on hand primarily to fund our commercial and marketing activities associated with clonoSEQ, our continued investments in streamlining our laboratory operations and our continued research and development initiatives related to drug discovery. Cash in excess of immediate requirements is invested in accordance with our investment policy, primarily with a view to capital preservation and liquidity. Currently, our funds are held in money market funds and marketable securities consisting of U.S. government treasury and agency securities, corporate bonds and commercial paper.

Previous wording

The following table summarizes our uses and sources of cash for the six months ended June 30, 2024 and 2023 (in thousands):

Current wording

The following table summarizes our uses and sources of cash for the nine months ended September 30, 2024 and 2023 (in thousands):

Previous wording

Cash used in operating activities during the six months ended June 30, 2024 was $55.7 million, which was primarily attributable to a net loss of $93.8 million and a net change in operating assets and liabilities of $7.5 million, partially offset by noncash share-based compensation of $27.3 million, noncash impairment of long-lived assets of $7.2 million related to our restructuring activities, noncash depreciation and amortization of $5.5 million, noncash lease expense of $2.7 million, noncash interest expense related to the Purchase Agreement of $1.4 million and inventory reserve expense of $1.4 million. The net change in operating assets and liabilities was primarily driven by a $4.8 million decrease in operating lease right-of-use assets and liabilities, a $3.5 million reduction in accounts payable and accrued liabilities driven largely by the payout of our corporate bonus during the three months ended March 31, 2024, and a $2.4 million reduction in deferred revenue. These changes were partially offset by a $2.4 million decrease in accounts receivable, net and a $0.5 million decrease in prepaid expenses and other current assets driven largely by a decrease in prepaid insurance charges.

Current wording

Cash used in operating activities during the nine months ended September 30, 2024 was $82.7 million, which was primarily attributable to a net loss of $125.9 million and a net change in operating assets and liabilities of $20.5 million, partially offset by noncash share-based compensation of $40.8 million, noncash depreciation and amortization of $8.1 million, noncash impairment of long-lived assets of $7.2 million related to our restructuring activities, noncash lease expense of $4.0 million, noncash interest expense related to the Purchase Agreement of $2.0 million and inventory reserve expense of $1.4 million. The net change in operating assets and liabilities was primarily driven by an $8.8 million reduction in deferred revenue largely driven by revenue recognized for Genentech, a $6.4 million decrease in operating lease right-of-use assets and liabilities, a $3.6 million reduction in accounts payable and accrued liabilities, a $2.8 million increase in accounts receivable, net and a $0.9 million increase in prepaid expenses and other current assets. These changes were partially offset by a $2.0 million decrease in inventory.

Previous wording

Cash used in operating activities during the six months ended June 30, 2023 was $82.7 million, which was primarily attributable to a net loss of $105.5 million and a net change in operating assets and liabilities of $24.0 million, partially offset by noncash share-based compensation of $32.0 million, noncash depreciation and amortization of $7.5 million, noncash lease expense of $3.6 million, noncash interest expense related to the Purchase Agreement of $2.8 million and inventory reserve expense of $0.8 million. The net change in operating assets and liabilities was primarily driven by a $13.9 million reduction in deferred revenue related primarily to revenue recognized from the Genentech Agreement, a $7.9 million reduction in accounts payable and accrued liabilities driven largely by the payout of our corporate bonus during the three months ended March 31, 2023, a $6.5 million increase in inventory and a $4.5 million decrease in operating lease right-of-use assets and liabilities. These changes were partially offset by an $8.5 million decrease in accounts receivable, net primarily related to collections from our biopharmaceutical customers.

Current wording

Cash used in operating activities during the nine months ended September 30, 2023 was $129.4 million, which was primarily attributable to a net loss of $155.8 million and a net change in operating assets and liabilities of $42.7 million, partially offset by noncash share-based compensation of $47.4 million, noncash depreciation and amortization of $10.6 million, noncash lease expense of $5.5 million, noncash interest expense related to the Purchase Agreement of $4.6 million and inventory reserve expense of $0.9 million. The net change in operating assets and liabilities was primarily driven by a $23.2 million reduction in deferred revenue related primarily to revenue recognized from the Genentech Agreement, a $10.7 million reduction in accounts payable and accrued liabilities largely driven by the payout of our corporate bonus during the three months ended March 31, 2023, a $6.8 million increase in inventory, a $6.7 million decrease in operating lease right-of-use assets and liabilities and a $4.0 million increase in prepaid expenses and other current assets largely driven by an increase in prepaid software charges. These changes were partially offset by an $8.8 million decrease in accounts receivable, net primarily related to collections from our biopharmaceutical customers.

Previous wording

Cash provided by investing activities during the six months ended June 30, 2024 was $50.4 million, which was primarily attributable to proceeds from maturities of marketable securities of $189.8 million, partially offset by purchases of marketable securities of $136.2 million and purchases of property and equipment of $3.2 million.

Current wording

Cash provided by investing activities during the nine months ended September 30, 2024 was $55.7 million, which was primarily attributable to proceeds from maturities of marketable securities of $258.7 million, partially offset by purchases of marketable securities of $199.5 million and purchases of property and equipment of $3.6 million.

Previous wording

Cash provided by investing activities during the six months ended June 30, 2023 was $100.3 million, which was primarily attributable to proceeds from maturities of marketable securities of $295.4 million, partially offset by purchases of marketable securities of $188.5 million and purchases of property and equipment of $6.6 million.

Current wording

Cash provided by investing activities during the nine months ended September 30, 2023 was $126.4 million, which was primarily attributable to proceeds from maturities of marketable securities of $443.4 million, partially offset by purchases of marketable securities of $307.6 million and purchases of property and equipment of $9.4 million.

Previous wording

Cash provided by financing activities during the six months ended June 30, 2024 was $0.1 million, which was attributable to proceeds from the exercise of stock options.

Current wording

Cash provided by financing activities during the nine months ended September 30, 2024 was $0.1 million, which was attributable to proceeds from the exercise of stock options.

Previous wording

Cash provided by financing activities during the six months ended June 30, 2023 was $2.1 million, which was attributable to proceeds from the exercise of stock options.

Current wording

Cash provided by financing activities during the nine months ended September 30, 2023 was $2.2 million, which was attributable to proceeds from the exercise of stock options.