Alpha Teknova, Inc.

Previous wording

We are ISO 13485:2016 certified, enabling us to manufacture products for use in diagnostic and therapeutic applications. Our certification allows us to offer solutions across the entire customer product development workflow, supporting our customers’ need for materials in greater volume and that meet increasingly stringent quality requirements as they scale from research to commercialization.

Current wording

We are ISO 13485:2016 certified, enabling us to manufacture products for use in diagnostic and therapeutic applications. Our certification allows us to offer solutions across the entire customer product development workflow, supporting our customers’ needs for materials in greater volume and that meet increasingly stringent quality requirements as they scale from research to commercialization.

Previous wording

We generated revenue of $9.8 million during the three months ended March 31, 2025, which represents an increase of $0.5 million compared to revenue of $9.3 million during the three months ended March 31, 2024. For the three months ended March 31, 2025 and 2024, only 5.3% and 4.5%, respectively, of our revenue was generated from customers located outside of the United States. Our sales outside of the United States are denominated in U.S. Dollars.

Current wording

We generated revenue of $10.3 million during the three months ended June 30, 2025, which represents an increase of $0.7 million compared to revenue of $9.6 million during the three months ended June 30, 2024. For the three months ended June 30, 2025 and 2024, only 5.0% and 4.0%, respectively, of our revenue was generated from customers located outside of the United States. We generated revenue of $20.1 million during the six months ended June 30, 2025, which represents an increase of $1.2 million compared to revenue of $18.9 million during the six months ended June 30, 2024. For the six months ended June 30, 2025 and 2024, only 5.1% and 4.3%, respectively, of our revenue was generated from customers located outside of the United States. Our sales outside of the United States are denominated in U.S. Dollars.

Previous wording

We had an operating loss of $5.0 million during the three months ended March 31, 2025, compared to an operating loss of $8.0 million during the three months ended March 31, 2024. While our expenses may fluctuate over the short term, we expect our expenses will continue to increase in future periods, but at a slower rate, in connection with our ongoing activities as we:

Current wording

We had an operating loss of $3.4 million during the three months ended June 30, 2025, compared to an operating loss of $5.1 million during the three months ended June 30, 2024. We had an operating loss of $8.4 million during the six months ended June 30, 2025, compared to an operating loss of $13.1 million during the six months ended June 30, 2024. While our expenses may fluctuate over the short term, we expect our expenses will increase in future periods, in connection with our ongoing activities as we:

Previous wording

We are closely monitoring economic uncertainty in the U.S. and abroad. General inflation in the U.S. rose in recent years to levels not experienced in recent decades. While the rate of inflation moderated in 2024, general inflation, including rising prices for our raw materials and other inputs, as well as rising salaries and other expenses, can negatively impact our business by increasing our cost of sales and operating expenses. In addition, during early 2024, the U.S. Federal Reserve raised interest rates in response to concerns about inflation, and although the U.S. Federal Reserve lowered interest rates in late 2024, the direction and timing of future interest rate changes remains uncertain. Inflation, together with increased interest rates, may cause our customers to reduce, delay, or cancel orders for our goods and services, thereby causing a decrease in or change in timing of sales of our products and services. We cannot predict the impact of future inflation and interest rate changes on the results of our operations. Furthermore, changes to tariff and related international trade policy in early 2025 create uncertainty about the broader economy and our business. For further information regarding the impact of these economic factors on the Company, please see the risk factors identified in Part I, Item 1A, Risk Factors, of our 2024 Annual Report on Form 10-K.

Current wording

We are closely monitoring economic uncertainty in the U.S. and abroad. General inflation in the U.S. rose in recent years to levels not experienced in recent decades. While the rate of inflation moderated in 2024, general inflation, including rising prices for our raw materials and other inputs, as well as rising salaries and other expenses, can negatively impact our business by increasing our cost of sales and operating expenses. In addition, during early 2024, the U.S. Federal Reserve raised interest rates in response to concerns about inflation, and although the U.S. Federal Reserve lowered interest rates in late 2024, the direction and timing of future interest rate changes remains uncertain. Inflation, together with increased interest rates, may cause our customers to reduce, delay, or cancel orders for our goods and services, thereby causing a decrease in or change in timing of sales of our products and services. We cannot predict the impact of future inflation and interest rate changes on the results of our operations. Furthermore, changes to tariff and related international trade policy in the first half of 2025 create uncertainty about the broader economy and our business. For further information regarding the impact of these economic factors on the Company, please see the risk factors identified in Part I, Item 1A, Risk Factors, of our 2024 Annual Report on Form 10-K.

Previous wording

Lab Essentials revenue was $8.1 million for the three months ended March 31, 2025, an increase of $0.9 million, or 11.7%, compared to $7.3 million for the three months ended March 31, 2024. The increase in Lab Essentials revenue was attributable to an increased number of customers, partially offset by slightly lower average revenue per customer.

Current wording

Lab Essentials revenue was $7.8 million for the three months ended June 30, 2025, an increase of $0.2 million, or 2.0%, compared to $7.6 million for the three months ended June 30, 2024. The increase in Lab Essentials revenue was attributable to an increased number of customers, partially offset by slightly lower average revenue per customer.

Previous wording

Revenue from U.S. sales was $9.3 million and $8.9 million for the three months ended March 31, 2025 and 2024, respectively. Revenue from U.S. sales as a percentage of our total revenue was consistent period over period, representing 94.7% and 95.5% of our total revenue during the three months ended March 31, 2025 and 2024, respectively.

Current wording

Revenue from U.S. sales was $9.8 million and $9.2 million for the three months ended June 30, 2025 and 2024, respectively. Revenue from U.S. sales as a percentage of our total revenue was consistent period over period, representing 95.0% and 96.0% of our total revenue during the three months ended June 30, 2025 and 2024, respectively.

Previous wording

Revenue from international sales was $0.5 million and $0.4 million for the three months ended March 31, 2025 and 2024, respectively. Revenue from international sales as a percentage of our total revenue was also consistent period over period, representing 5.3% and 4.5% of our total revenue during the three months ended March 31, 2025 and 2024, respectively.

Current wording

Revenue from international sales was $0.5 million and $0.4 million for the three months ended June 30, 2025 and 2024, respectively. Revenue from international sales as a percentage of our total revenue was also consistent period over period, representing 5.0% and 4.0% of our total revenue during the three months ended June 30, 2025 and 2024, respectively.

Previous wording

Gross profit percentage was 30.7% and 23.8% for the three months ended March 31, 2025 and 2024, respectively. The increase in gross profit was primarily driven by higher revenue coupled with lower overhead costs.

Current wording

Gross profit percentage was 38.7% and 29.2% for the three months ended June 30, 2025 and 2024, respectively. The increase in gross profit was driven by manufacturing efficiency gains and higher revenue.

Previous wording

Our other income (expenses), net for the three months ended March 31, 2025 and 2024, were as follows (dollars in thousands):

Current wording

Our other expenses, net for the three months ended June 30, 2025 and 2024, were as follows (dollars in thousands):

Previous wording

Our income taxes were not significant for either the three months ended March 31, 2025 or 2024. The effective tax rates for the three months ended March 31, 2025 and 2024 were (0.5%) and 0.4%, respectively. The effective tax rates differ from the federal statutory rate primarily due to operating losses not expected to produce an income tax benefit.

Current wording

Our income taxes were not significant for either the three months ended June 30, 2025 or 2024. The effective tax rates for the three months ended June 30, 2025 and 2024 were (0.5%) and 0.1%, respectively. The effective tax rates differ from the federal statutory rate primarily due to operating losses not expected to produce an income tax benefit.

Previous wording

Clinical Solutions revenue was $1.2 million for the three months ended March 31, 2025, a decrease of $0.6 million, or 32.4%, compared to $1.7 million for the three months ended March 31, 2024. The decrease in Clinical Solutions revenue was attributable to lower average revenue per customer, partially offset by an increased number of customers.

Current wording

Clinical Solutions revenue was $3.2 million for the six months ended June 30, 2025, a decrease of $0.1 million, or 1.9%, compared to $3.3 million for the six months ended June 30, 2024. The decrease in Clinical Solutions revenue was attributable to lower average revenue per customer, partially offset by an increased number of customers.

Previous wording

Research and development expenses were $0.6 million and $0.9 million for the three months ended March 31, 2025 and 2024, respectively. The decrease was primarily driven by lower salaries and wages resulting from the reduction in workforce that was completed early during the three months ended March 31, 2024.

Current wording

Research and development expenses were $1.1 million and $1.5 million for the six months ended June 30, 2025 and 2024, respectively. The decrease was primarily driven by lower salaries and wages resulting from the reduction in workforce that was completed early during the three months ended March 31, 2024.

Previous wording

Sales and marketing expenses were $1.6 million and $1.7 million for the three months ended March 31, 2025 and 2024, respectively. The decrease was primarily driven by lower salaries and wages resulting from the reduction in workforce that occurred during the three months ended March 31, 2024. However, the decrease in salaries and wages was largely offset by increased marketing costs during the three months ended March 31, 2025.

Current wording

Sales and marketing expenses were consistent at $3.2 million and $3.1 million for the six months ended June 30, 2025 and 2024, respectively. Lower salaries and wages resulting from the reduction in workforce that occurred during the three months ended March 31, 2024, were largely offset by increased marketing costs during the six months ended June 30, 2025.

Previous wording

General and administrative expenses were $5.5 million and $7.4 million for the three months ended March 31, 2025 and 2024, respectively. Excluding the one-time, non-recurring charges related to the reduction in workforce of $1.3 million for the three months ended March 31, 2024, general and administrative expenses decreased $0.6 million. The decrease was primarily driven by lower stock-based compensation expense due to repricing that occurred during the three months ended March 31, 2024. See “Notes to Financial Statements—Note 13. Stock-Based Compensation” for a more detailed discussion of the stock option repricing.

Current wording

General and administrative expenses were $10.4 million and $12.9 million for the six months ended June 30, 2025 and 2024, respectively. Excluding the one-time, non-recurring charges related to the reduction in workforce of $1.3 million and $0.1 million related to the increase of our loss contingency for the six months ended June 30, 2024, general and administrative expenses decreased $1.1 million. The decrease was driven by reduced spend, primarily on facility costs and insurance as well as lower stock-based compensation expense due to one-time costs incurred in connection with the repricing that occurred during the three months ended March 31, 2024. See “Notes to Financial Statements—Note 13. Stock-Based Compensation” for a more detailed discussion of the stock option repricing.

Previous wording

Total other income, net was $0.3 million for the three months ended March 31, 2025, compared to total other expenses, net of $0.1 million for the three months ended March 31, 2024. The increase in total other income, net was primarily attributable to a $0.5 million adjustment recognized on the exit fee concurrent with the refinancing of our credit agreement during the three months ended March 31, 2025.

Current wording

Total other income, net was $0.2 million for the six months ended June 30, 2025, compared to total other expenses, net of $0.4 million for the six months ended June 30, 2024. The decrease in total other expense, net was primarily attributable to a $0.5 million adjustment recognized on the exit fee concurrent with the refinancing of our credit agreement during the three months ended March 31, 2025 coupled with lower interest expense.

Previous wording

The primary sources of financing for our operations are our (i) registered direct offering and concurrent private placement completed in September 2023 (collectively, the September 2023 Offerings), which resulted in aggregate gross proceeds of $22.9 million before deducting offering expenses of $0.4 million and the prepayment of $10.0 million owed under the Term Loan as discussed below, and (ii) private placement completed in July 2024 (the July 2024 Offering), which resulted in aggregate gross proceeds of $15.4 million before deducting offering expenses of $0.2 million.

Current wording

The primary sources of financing for our operations are our (i) registered direct offering and concurrent private placement completed in September 2023 (collectively, the September 2023 Offerings), which resulted in aggregate gross proceeds of $22.9 million before deducting offering expenses of $0.4 million and the prepayment of $10.0 million of the Term Loan , and (ii) private placement completed in July 2024 (the July 2024 Offering), which resulted in aggregate gross proceeds of $15.4 million before deducting offering expenses of $0.2 million.

Previous wording

Our principal liquidity requirements are to fund our operations and capital expenditures. As of March 31, 2025, we had $32.7 million in net working capital, which included $26.3 million in cash and cash equivalents and short-term investments. Our material cash requirements from known contractual obligations and commitments relate primarily to operating leases for our office, manufacturing, warehouse, and distribution facilities at March 31, 2025. See “Notes to Financial Statements—Note 9. Leases,” for a discussion of our lease obligations reflected on our balance sheet.

Current wording

Our principal liquidity requirements are to fund our operations and capital expenditures. As of June 30, 2025, we had $31.6 million in net working capital, which included $24.0 million in cash and cash equivalents and short-term investments. Our material cash requirements from known contractual obligations and commitments relate primarily to operating leases for our office, manufacturing, warehouse, and distribution facilities at June 30, 2025. See “Notes to Financial Statements—Note 9. Leases,” for a discussion of our lease obligations reflected on our balance sheet.

Previous wording

In addition to our existing cash and cash equivalents and short-term investments, our principal source of liquidity is our credit facility. On March 3, 2025, we entered into the Second Amended and Restated Credit Agreement with MidCap Financial (Midcap) Trust which provides for loan commitments in an aggregate amount of up to $28.245 million consisting of a $23.245 million senior secured term loan (Term Loan) and a $5.0 million working capital facility (Revolver). The Amended Term Loan consists of the $12.135 million balance outstanding under the previous term loan, plus an additional $1.110 million related to the exit fee that would otherwise have been due upon closing of the Second and Amended Restated Term Loan Credit Agreement, as well as an additional tranche of $10.0 million that may become available for use in an acquisition, with MidCap’s consent. The Second Amended and Restated Credit Agreement includes minimum net revenue requirements that are measured on a trailing twelve-month basis and a minimum cash requirement which is constant throughout the term of the agreement. For example, our minimum net revenue requirement for the twelve months ending December 31, 2025, is $39.0 million. The minimum cash requirement is $8.0 million, which includes cash and cash equivalents as well as short-term investments in U.S. Treasuries. See “Notes to Financial Statements—Note 12. Long-term Debt,” for a more detailed discussion of the material terms of our Second Amended and Restated Credit Agreement.

Current wording

In addition to our existing cash and cash equivalents and short-term investments, our principal source of liquidity is our credit facility. On March 3, 2025, we entered into the Second Amended and Restated Credit Agreement with MidCap Financial (Midcap) Trust which provides for loan commitments in an aggregate amount of up to $28.245 million consisting of a $23.245 million senior secured term loan (Term Loan) and a $5.0 million working capital facility (Revolver). The Amended Term Loan consists of the $12.135 million balance outstanding under the previous term loan, plus an additional $1.110 million related to the exit fee that would otherwise have been due upon closing of the Second and Amended Restated Term Loan Credit Agreement, as well as an additional tranche of $10.0 million that may become available for use in an acquisition, with MidCap’s consent. The Second Amended and Restated Credit Agreement includes minimum net revenue requirements that are measured on a trailing twelve-month basis and a minimum cash requirement which is constant throughout the term of the agreement. For example, our minimum net revenue requirement for the twelve months ending December 31, 2025, is $39.0 million. The minimum cash requirement is $8.0 million, which includes cash and cash equivalents as well as short-term investments in U.S. Treasuries. See “Notes to Financial Statements—Note 12. Long-term Debt, Net” for a more detailed discussion of the material terms of our Second Amended and Restated Credit Agreement.

Previous wording

Net cash used in operating activities was $4.1 million for the three months ended March 31, 2025, which primarily consisted of net loss of $4.6 million plus net adjustments for non-cash charges of $2.3 million, offset by net changes in operating assets and liabilities of $1.8 million. The primary non-cash adjustments to net loss included $1.6 million of depreciation and amortization, $0.9 million of stock-based compensation, and $0.4 million provision for inventory, partially offset an adjustment to the loan exit fee of $0.5 million, and amortization of the discount on short-term investments of $0.2 million. The main drivers of the changes in operating assets and liabilities were a $1.3 million increase in accounts receivable, a $1.0 million decrease in accrued liabilities, and a $0.2 million increase in inventories, partially offset by a $0.7 million increase in accounts payable.

Current wording

Net cash used in operating activities was $6.2 million for the six months ended June 30, 2025, which primarily consisted of net loss of $8.2 million plus net adjustments for non-cash charges of $5.4 million, offset by net changes in operating assets and liabilities of $3.4 million. The primary non-cash adjustments to net loss included $3.2 million of depreciation and amortization, $1.8 million of stock-based compensation, and $0.9 million provision for inventory, partially offset an adjustment to the loan exit fee of $0.5 million, and amortization of the discount on short-term investments of $0.4 million. The main drivers of the changes in operating assets and liabilities were a $1.7 million increase in inventories, a $1.2 million decrease in accrued liabilities, and a $0.9 million increase in accounts receivable, partially offset by a $0.4 million increase in accounts payable.

Previous wording

Net cash used in operating activities was $6.6 million for the three months ended March 31, 2024, which primarily consisted of net loss of $8.1 million plus net adjustments for non-cash charges of $3.0 million, offset by net changes in operating assets and liabilities of $1.5 million. The primary non-cash adjustments to net loss included $1.6 million of depreciation and amortization and $1.3 million of stock-based compensation. The main drivers of the changes in operating assets and liabilities were a $1.7 million decrease in accrued liabilities, and a $0.6 million increase in accounts receivable, partially offset by a $0.5 million decrease in inventories, a $0.2 million decrease in prepaid expenses and other current assets, a $0.1 million increase in accounts payable, and a $0.1 million decrease other non-current assets.

Current wording

Net cash used in operating activities was $9.4 million for the six months ended June 30, 2024, which primarily consisted of net loss of $13.5 million plus net adjustments for non-cash charges of $6.6 million, offset by net changes in operating assets and liabilities of $2.6 million. The primary non-cash adjustments to net loss included $3.3 million of depreciation and amortization, $2.1 million of stock-based compensation, and $0.9 million provision for inventory. The main drivers of the changes in operating assets and liabilities were a $1.8 million decrease in accrued liabilities, a $0.7 million increase in accounts receivable, a $0.4 million decrease in accounts payable, and a $0.3 million increase in inventories, partially offset by a $0.4 million decrease in prepaid expenses and other current assets and a $0.2 million decrease other non-current assets.

Previous wording

Net cash provided by investing activities was $3.8 million for the three months ended March 31, 2025, which consisted of maturities of short-term investments of $6.0 million, partially offset by purchases of short-term investments of $2.0 million and purchases of property, plant, and equipment of $0.2 million.

Current wording

Net cash provided by investing activities was $5.9 million for the six months ended June 30, 2025, which consisted of maturities of short-term investments of $16.0 million, partially offset by purchases of short-term investments of $9.7 million and purchases of property, plant, and equipment of $0.4 million.

Previous wording

Net cash provided by investing activities was not significant for the three months ended March 31, 2024, as proceeds from the sale of certain long-lived assets of $0.1 million were partially offset by purchases of property, plant, and equipment of $0.1 million.

Current wording

Net cash used in investing activities was $0.1 million for the six months ended June 30, 2024, which consisted of purchases of property, plant, and equipment of $0.2 million, partially offset by proceeds from the sale of certain long-lived assets of $0.1 million.

Previous wording

Net cash used in financing activities was $0.1 million for the three months ended March 31, 2025, which was primarily attributable to payment of exit fee costs of $1.1 million and repayment of financed insurance premiums of $0.1 million, largely offset by proceeds from long-term debt of $1.1 million.

Current wording

Net cash used in financing activities was $0.1 million for the six months ended June 30, 2025, which was primarily attributable to payment of exit fee costs of $1.1 million, payment of debt issuance costs of $0.1 million, and repayment of financed insurance premiums of $0.1 million, largely offset by proceeds from long-term debt of $1.1 million and proceeds of $0.1 million from the issuance of common stock under our employee stock purchase plan.

Previous wording

Net cash used in financing activities was $0.3 million for the three months ended March 31, 2024, which was primarily attributable to repayments of financed insurance premiums.

Current wording

Net cash used in financing activities was $0.4 million for the six months ended June 30, 2024, which was primarily attributable to repayments of financed insurance premiums of $0.4 million, partially offset by proceeds of $0.1 million from the issuance of common stock under our employee stock purchase plan.

Previous wording

the last day of our fiscal year following the fifth anniversary of the date of the closing of our IPO;

Current wording

the last day of our fiscal year following the fifth anniversary of the date of the closing of our initial public offering, which we completed in June 2021 (IPO);