VERACYTE INC

Previous wording

Recent interest rate changes and inflation in the United States and other markets globally, as well as the macroeconomic environment, have heightened the risk of an economic downturn, recession or heightened volatility in the capital or credit markets in the United States and globally. Moreover, the continued fluctuation of the U.S. dollar compared to other currencies, has impacted and may continue to impact our results of operations. We intend to continue to monitor macroeconomic conditions closely and may determine to take certain financial or operational actions in response to such conditions as appropriate. In addition, regional conflicts like those between Russia and Ukraine may adversely impact our business and operating results. Finally, the ongoing conflict in the Middle East may disrupt our Israel business operations and employees that we acquired through the C2i Acquisition.

Current wording

Recent interest rate changes and inflation in the United States and other markets globally, as well as the macroeconomic environment, have heightened the risk of an economic downturn, recession or heightened volatility in the capital or credit markets in the United States and globally. Moreover, the continued fluctuation of the U.S. dollar compared to other currencies, has impacted and may continue to impact our results of operations. We intend to continue to monitor macroeconomic conditions closely and may determine to take certain financial or operational actions in response to such conditions as appropriate. In addition, regional conflicts like those between Russia and Ukraine may adversely impact our business and operating results. Finally, the ongoing conflict in the Middle East and related political, military and security conditions in and around Israel may disrupt our Israel business operations and employees that we acquired through the C2i Acquisition.

Previous wording

Research and development expenses include expenses incurred to collect clinical samples and conduct clinical studies to develop and support our products and pipeline, as well as develop future technology. These expenses consist of compensation expenses, direct research and development expenses such as laboratory supplies and costs associated with setting up and conducting clinical studies at domestic and international sites, professional fees, depreciation and amortization, other miscellaneous expenses and allocation of facility and information technology expenses. We expense all research and development costs in the periods in which they are incurred. We incurred a majority of our research and development expenses in 2023 in support of our early-stage products, including Percepta Nasal Swab, as well as the development of new IVD products and discovery. In the six months ended June 30, 2024, our research and development expenses also included support for our MRD tests. Going forward, we expect to incur significant expense as we invest in the continued development of our innovation engine, early-stage products including our MRD tests, required clinical studies and the development of current tests on multiple IVD platforms.

Current wording

Research and development expenses include expenses incurred to collect clinical samples and conduct clinical studies to develop and support our products and pipeline, as well as develop future technology. These expenses consist of compensation expenses, direct research and development expenses such as laboratory supplies and costs associated with setting up and conducting clinical studies at domestic and international sites, professional fees, depreciation and amortization, other miscellaneous expenses and allocation of facility and information technology expenses. We expense all research and development costs in the periods in which they are incurred. We incurred a majority of our research and development expenses in 2023 in support of our early-stage products, including Percepta Nasal Swab, as well as the development of new IVD products and discovery. In the nine months ended September 30, 2024, our research and development expenses also included support for our MRD tests. Going forward, we expect to incur significant expense as we invest in the continued development of our innovation engine, early-stage products including our MRD tests, required clinical studies and the development of current tests on multiple IVD platforms.

Previous wording

Our finite-lived intangible assets, acquired in business combinations, are being amortized over 4 to 15 years, using the straight-line method. Intangible asset amortization - operating expenses includes amortization of finite-lived intangible assets related to developed technology utilized in the development of future product and service offerings, trade names and customer relationships.

Current wording

Our finite-lived intangible assets, acquired in business combinations, are being amortized over 5 to 15 years, using the straight-line method. Intangible asset amortization - operating expenses includes amortization of finite-lived intangible assets related to developed technology utilized in the development of future product and service offerings, trade names and customer relationships.

Previous wording

Comparison of the three and six months ended June 30, 2024 and 2023 (in thousands of dollars, except percentages and test volume):

Current wording

Comparison of the three and nine months ended September 30, 2024 and 2023 (in thousands of dollars, except percentages and test volume):

Previous wording

Revenue increased $24.1 million for the three months ended June 30, 2024 compared to the same period in 2023. This was primarily due to a $25.2 million increase in testing revenue, partially offset by a $1.0 million decrease in our Biopharmaceutical and other revenue. The 31% growth in testing revenue was primarily driven by a 24% volume increase and a 5% average selling price increase between our Decipher Prostate and Afirma products for the three months ended June 30, 2024.

Current wording

Revenue increased $25.8 million for the three months ended September 30, 2024 compared to the same period in 2023. This was primarily due to a $27.5 million increase in testing revenue, partially offset by a $0.9 million decrease in our biopharmaceutical and other revenue and a $0.8 million decrease in our product revenue. The 34% growth in testing revenue was primarily driven by a 24% volume increase and an 8% average selling price increase between our Decipher Prostate and Afirma products for the three months ended September 30, 2024.

Previous wording

Revenue increased $38.5 million for the six months ended June 30, 2024 compared to the same period in 2023. This was primarily due to a $43.1 million increase in testing revenue driven by a 22% volume increase, partially offset by a $4.1 million decrease in our Biopharmaceutical and other revenue. The increase in testing revenue and tests reported for the six months ended June 30, 2024 was due to Decipher Prostate and Afirma tests.

Current wording

Revenue increased $64.3 million for the nine months ended September 30, 2024 compared to the same period in 2023. This was primarily due to a $70.7 million increase in testing revenue driven by a 23% volume increase and a 6% average selling price increase, partially offset by a $5.1 million decrease in our biopharmaceutical and other revenue and a $1.3 million decrease in our product revenue. The increase in testing revenue and tests reported for the nine months ended September 30, 2024 was due to Decipher Prostate and Afirma tests.

Previous wording

Product revenue decreased $0.1 million for the three months ended June 30, 2024 and decreased $0.5 million for the six months ended June 30, 2024 compared to the same periods in 2023. The six months result was primarily driven by lower demand for product test kits, largely as a result of supply chain issues.

Current wording

Product revenue decreased $0.8 million for the three months ended September 30, 2024 and decreased $1.3 million for the nine months ended September 30, 2024 compared to the same periods in 2023. The three and nine months result was primarily driven by lower demand for product test kits, largely as a result of our transition to other IVD platforms and supply chain issues.

Previous wording

Biopharmaceutical and other revenue decreased by $1.0 million for the three months ended June 30, 2024 and decreased by $4.1 million for the six months ended June 30, 2024 compared to the same periods in 2023, driven primarily by the reduction of customer projects given overall spending constraints across the industry.

Current wording

Biopharmaceutical and other revenue decreased by $0.9 million for the three months ended September 30, 2024 and decreased by $5.1 million for the nine months ended September 30, 2024 compared to the same periods in 2023, driven primarily by the reduction of customer projects given overall spending constraints across the industry.

Previous wording

Cost of testing revenue increased $4.6 million, or 20%, for the three months ended June 30, 2024 compared to the same period in 2023. The increase in cost of testing revenue was due to increased volume in testing, higher staffing to support testing performance and the build out of infrastructure related to current and future growth expectations, primarily related to Decipher Prostate and Afirma tests.

Current wording

Cost of testing revenue increased $7.2 million, or 33%, for the three months ended September 30, 2024 compared to the same period in 2023. The increase in cost of testing revenue was due to increased volume in testing, higher staffing to support testing performance and the build out of infrastructure related to current and future growth expectations, primarily related to Decipher Prostate and Afirma tests.

Previous wording

Cost of testing revenue increased $10.9 million, or 25%, for the six months ended June 30, 2024 compared to the same period in 2023. The increase in cost of testing revenue was due to increased volume in testing, higher staffing to support testing performance and the build out of infrastructure related to current and future growth expectations, primarily related to Decipher Prostate and Afirma tests.

Current wording

Cost of testing revenue increased $18.1 million, or 28%, for the nine months ended September 30, 2024 compared to the same period in 2023. The increase in cost of testing revenue was due to increased volume in testing, higher staffing to support testing performance and the build out of infrastructure related to current and future growth expectations, primarily related to Decipher Prostate and Afirma tests.

Previous wording

Cost of product revenue decreased $0.4 million, or 19%, for the three months ended June 30, 2024 compared to the same period in 2023, driven by lower volume of tests and a decrease in overhead related to manufacturing our IVD kits at our Marseille, France facilities. Cost of product revenue was the same for the six months ended June 30, 2024 compared to the same period in 2023.

Current wording

Cost of product revenue decreased $0.6 million, or 26%, for the three months ended September 30, 2024 and decreased $0.6 million, or 9%, for the nine months ended September 30, 2024 compared to the same periods in 2023, driven by lower volume of tests and a decrease in overhead related to manufacturing our IVD kits at our Marseille, France facilities.

Previous wording

Cost of biopharmaceutical and other revenue includes labor costs, laboratory supplies and pass-through expenses incurred on these projects. Cost of biopharmaceutical and other revenue for the three and six months ended June 30, 2024 decreased by $0.2 million and $1.8 million, respectively, compared to the same periods in 2023, driven by reductions of variable expenses related to projects.

Current wording

Cost of biopharmaceutical and other revenue includes labor costs, laboratory supplies and pass-through expenses incurred on these projects. Cost of biopharmaceutical and other revenue for the three and nine months ended September 30, 2024 decreased by $0.2 million and $2.0 million, respectively, compared to the same periods in 2023, driven by reductions of staffing and variable expenses related to projects.

Previous wording

Research and development expense increased $3.9 million, or 31%, for the three months ended June 30, 2024 compared to the same period in 2023. The increase was primarily driven by direct research and development expense related to our on-going clinical studies including, but not limited to, furthering the support and clinical utility evidence of our urology products and our Percepta Nasal Swab test. In addition to clinical studies, the increase is partially driven by development costs related to our IVD and MRD strategies, as well as projects to enhance laboratory efficiencies.

Current wording

Research and development expense increased $4.3 million, or 32%, for the three months ended September 30, 2024 compared to the same period in 2023. The increase was primarily driven by direct research and product development expense related to our on-going development costs for our IVD and MRD strategies, as well as projects to enhance laboratory efficiencies. In addition to these development costs, the increase is partially driven by clinical studies including, but not limited to, furthering the support and clinical utility evidence of our urology products, as well as our Percepta Nasal Swab test.

Previous wording

Research and development expense increased $7.1 million, or 28%, for the six months ended June 30, 2024 compared to the same period in 2023. The increase was primarily driven by direct research and development expense related to our on-going clinical studies including, but not limited to, furthering the support and clinical utility evidence of our Percepta Nasal Swab test and urology products. In addition to clinical studies, the increase is partially driven by development and personnel costs related to our IVD and MRD strategies, as well as projects to enhance laboratory efficiencies.

Current wording

Research and development expense increased $11.4 million, or 29%, for the nine months ended September 30, 2024 compared to the same period in 2023. The increase was primarily driven by direct research and product development expense related to our on-going development costs for our IVD and MRD strategies, as well as projects to enhance laboratory efficiencies. In addition to these development costs, the increase is partially driven by clinical studies including, but not limited to, furthering the support and clinical utility evidence of our urology products, as well as our Percepta Nasal Swab test.

Previous wording

Selling and marketing expense decreased $1.5 million, or 6%, for the three months ended June 30, 2024 compared to the same period in 2023. The decrease in compensation expense and other expenses was primarily due to the reduction in sales support for our Envisia product and reduced variable compensation. Direct marketing expense increased primarily due to increases in trade shows and market research.

Current wording

Selling and marketing expense decreased $1.7 million, or 7%, for the three months ended September 30, 2024 compared to the same period in 2023. The decrease in compensation expense was primarily due to the reduction in sales support for our Envisia product and reduced variable compensation. Direct marketing expense increased primarily due to increases in trade shows and market research.

Previous wording

Selling and marketing expense decreased $3.9 million, or 7%, for the six months ended June 30, 2024 compared to the same period in 2023. The decrease in compensation and other expense was primarily due to a reversal of the stock-based compensation related to employee exits and reduced variable compensation, partially offset by severance costs associated with the decision to reduce the sales support for our Envisia product. Direct marketing expense increased primarily due to increased trade show events.

Current wording

Selling and marketing expense decreased $5.6 million, or 7%, for the nine months ended September 30, 2024 compared to the same period in 2023. The decrease in compensation and other expense was primarily due to the decision to reduce the sales support for our Envisia product and a reversal of the stock-based compensation related to employee exits. Direct marketing expense increased primarily due to increased trade show events.

Previous wording

General and administrative expense increased by $6.7 million for the three months ended June 30, 2024, compared to the same period in 2023. Compensation expense for the three months ended June 30, 2024 compared to the same period in 2023 increased primarily due to $2.9 million of expenses related to restructuring costs associated with the rupture conventionelle collective, or mutually consented termination plan, at our Marseille location as well as increased variable compensation. Occupancy expenses increased primarily due to our expansion of our San Diego facilities footprint to support Decipher Prostate growth, and other expenses increased $2.8 million primarily in relation to expenses related to the C2i Acquisition, including contingent consideration expense of $0.8 million, along with an increase in infrastructure costs. General and administrative expenses related to occupancy costs and information technology costs are allocated to general and administrative expense, selling and marketing expense, research and development expense, and cost of revenue based on the headcount and employee location.

Current wording

General and administrative expense increased by $9.4 million for the three months ended September 30, 2024, compared to the same period in 2023. Compensation expense for the three months ended September 30, 2024 compared to the same period in 2023 increased primarily due to increased wages and headcount from infrastructure investments. Occupancy expenses increased primarily due to our expansion of our facilities footprint to support overall volume growth, and other expenses increased $7.4 million primarily in relation to a $5.2 million reversal of contingent consideration expense recorded in the three months ended September 30, 2023, along with an increase in infrastructure costs. General and administrative expenses related to occupancy costs and information technology costs are allocated to general and administrative expense, selling and marketing expense, research and development expense, and cost of revenue based on the headcount and employee location.

Previous wording

General and administrative expense increased by $11.9 million for the six months ended June 30, 2024, compared to the same period in 2023. Compensation expense for the six months ended June 30, 2024 compared to the same period in 2023 increased primarily due to expenses related to restructuring costs associated with the mutually consented termination plan at our Marseille location, annual compensation increases and expenses related to the C2i Acquisition. Occupancy expenses increased primarily due to our expansion of our San Diego facilities footprint to support Decipher Prostate growth, and other expenses increased $7.1 million primarily in relation to expenses related to the C2i Acquisition, infrastructure build out and $0.9 million of contingent consideration expenses. General and administrative expenses related to occupancy costs and information technology costs are allocated to general and administrative expense, selling and marketing expense, research and development expense, and cost of revenue based on the headcount and employee location.

Current wording

General and administrative expense increased by $21.3 million for the nine months ended September 30, 2024, compared to the same period in 2023. Compensation expense for the nine months ended September 30, 2024 compared to the same period in 2023 increased primarily due to expenses related to restructuring costs associated with the mutually consented termination plan at our Marseille location, annual compensation increases and expenses related to the C2i Acquisition. Occupancy expenses increased primarily due to our expansion of our San Diego facilities footprint to support Decipher Prostate growth, and other expenses increased $14.4 million primarily in relation to expenses related to the C2i Acquisition, infrastructure build out and due to a $5.5 million reversal of contingent consideration expense recorded in the three months ended September 30, 2023. General and administrative expenses related to occupancy costs and information technology costs are allocated to general and administrative expense, selling and marketing expense, research and development expense, and cost of revenue based on the headcount and employee location.

Previous wording

There were no impairments of long-lived assets during the three months ended June 30, 2024 and 2023. Impairment of long-lived assets during the six months ended June 30, 2024 and 2023 was $0.4 million and $1.4 million, respectively, of impairment of right-of-use and fixed assets in relation to exiting our Watertown and Richmond facilities.

Current wording

During the three and nine months ended September 30, 2024 impairment of long-lived assets was $0.2 million and $0.6 million, respectively, in relation to exiting our Watertown facility. Impairment of long-lived assets during the three and nine months ended September 30, 2023 was $34.9 million and $36.3 million, respectively, of impairment charge associated with the nCounter Dx license finite-lived intangible asset and impairment of right-of-use and fixed assets in relation to exiting our Richmond facility.

Previous wording

Other income (loss), net, increased $3.0 million for the three months ended June 30, 2024 compared to the same period in 2023, primarily due to an increase of $1.4 million from interest income and an increase of $1.8 million related to the French research tax credit.

Current wording

Other income (loss), net, increased $2.9 million for the three months ended September 30, 2024 compared to the same period in 2023, primarily due to an increase of $2.3 million due to unrealized foreign currency gain and an increase of $0.8 million from interest income.

Previous wording

Other income (loss), net, increased $3.3 million for the six months ended June 30, 2024 compared to the same period in 2023, primarily due to an increase of $2.9 million from interest and dividend income, an increase of $1.4 million related to the French research tax credit, and a decrease of $0.9 million due to unrealized foreign currency loss.

Current wording

Other income (loss), net, increased $6.2 million for the nine months ended September 30, 2024 compared to the same period in 2023, primarily due to an increase of $3.8 million from interest income, an increase of $1.3 million related to the French research tax credit, and an increase of $1.4 million due to unrealized foreign currency loss.

Previous wording

We recorded income tax expense of $1.6 million and $0.1 million for the three months ended June 30, 2024 and 2023, respectively, and recorded income tax expense of $1.6 million and $0.1 million for the six months ended June 30, 2024 and 2023, respectively.

Current wording

We recorded income tax expense of $1.7 million and $3.3 million for the three and nine months ended September 30, 2024, respectively, and recorded income tax benefit of $0.2 million and $29.0 thousand for the three and nine months ended September 30, 2023, respectively.

Previous wording

As of June 30, 2024, we had cash and cash equivalents of $235.9 million. During the six months ended June 30, 2024, our cash and cash equivalents increased by $19.5 million. Historically, we have been financed primarily through net proceeds from the sale of our equity securities. Beginning in 2023, our operations have been financed primarily by cash flows generated by our revenue. For the six months ended June 30, 2024, we had net income of $3.9 million, but we may not sustain profitability for the remainder of 2024 and in future years. As of June 30, 2024, we had an accumulated deficit of $464.3 million.

Current wording

As of September 30, 2024, we had cash and cash equivalents of $274.1 million. During the nine months ended September 30, 2024, our cash and cash equivalents increased by $57.6 million. Historically, we have been financed primarily through net proceeds from the sale of our equity securities. Beginning in 2023, our operations have been financed primarily by cash flows generated by our revenue. For the nine months ended September 30, 2024, we had net income of $19.0 million, but we may not sustain profitability for the remainder of 2024 and in future years. As of September 30, 2024, we had an accumulated deficit of $449.1 million.

Previous wording

We believe our existing cash and cash equivalents as of June 30, 2024, and cash flows generated by our revenue during the next 12 months will be sufficient to meet our anticipated cash requirements for at least the next 12 months from the filing date of this report. We expect that our near- and longer-term liquidity requirements will continue to consist of costs to run our laboratories, research and development expenses, selling and marketing expenses, general and administrative expenses, working capital, capital expenditures, lease obligations, potential milestones associated with the C2i Acquisition, and general corporate expenses associated with the growth of our business. However, we may also use cash to acquire or invest in complementary businesses, technologies, services or products that would change our cash requirements. If we are not able to generate cash flows from our revenue to finance our cash requirements, we will need to finance future cash needs primarily through public or private equity offerings, debt financings, borrowings or strategic collaborations or licensing arrangements. If we raise funds by issuing equity securities, dilution to stockholders could result. Any equity securities issued also may provide for rights, preferences or privileges senior to those of holders of our common stock. The terms of debt securities issued or borrowings could impose significant restrictions on our operations. The incurrence of indebtedness or the issuance of certain equity securities could result in increased fixed payment obligations and could also result in restrictive covenants, such as limitations on our ability to incur additional debt or issue additional equity, limitations on our ability to acquire or license intellectual property rights, restrictions on our cash and other operating restrictions that could adversely affect our ability to conduct our business. In addition, the issuance of additional equity securities by us, or the possibility of such issuance, may cause the market price of our common stock to decline. In the event that we enter into collaborations or licensing arrangements to raise capital, we may be required to accept unfavorable terms. These agreements may require that we relinquish or license to a third-party on unfavorable terms our rights to technologies or product candidates that we otherwise would seek to develop or commercialize ourselves, or reserve certain opportunities for future potential arrangements when we might be able to achieve more favorable terms. If we are not able to secure additional funding when needed, we may have to delay, reduce the scope of or eliminate one or more research and development programs or selling and marketing initiatives, or forgo potential acquisitions or investments. In addition, we may have to work with a partner on one or more of our products or development programs, which could lower the economic value of those programs to us. Moreover, any instability in the global banki…

Excerpt shortened here; the source contains the full paragraph.

Current wording

We believe our existing cash and cash equivalents as of September 30, 2024, and cash flows generated by our revenue during the next 12 months will be sufficient to meet our anticipated cash requirements for at least the next 12 months from the filing date of this report. We expect that our near- and longer-term liquidity requirements will continue to consist of costs to run our laboratories, research and development expenses, selling and marketing expenses, general and administrative expenses, working capital, capital expenditures, lease obligations, potential milestones associated with the C2i Acquisition, costs to fund our overseas operations, and general corporate expenses associated with the growth of our business. However, we may also use cash to acquire or invest in complementary businesses, technologies, services or products that would change our cash requirements. If we are not able to generate cash flows from our revenue to finance our cash requirements, we will need to finance future cash needs primarily through public or private equity offerings, debt financings, borrowings or strategic collaborations or licensing arrangements. If we raise funds by issuing equity securities, dilution to stockholders could result. Any equity securities issued also may provide for rights, preferences or privileges senior to those of holders of our common stock. The terms of debt securities issued or borrowings could impose significant restrictions on our operations. The incurrence of indebtedness or the issuance of certain equity securities could result in increased fixed payment obligations and could also result in restrictive covenants, such as limitations on our ability to incur additional debt or issue additional equity, limitations on our ability to acquire or license intellectual property rights, restrictions on our cash and other operating restrictions that could adversely affect our ability to conduct our business. In addition, the issuance of additional equity securities by us, or the possibility of such issuance, may cause the market price of our common stock to decline. In the event that we enter into collaborations or licensing arrangements to raise capital, we may be required to accept unfavorable terms. These agreements may require that we relinquish or license to a third-party on unfavorable terms our rights to technologies or product candidates that we otherwise would seek to develop or commercialize ourselves, or reserve certain opportunities for future potential arrangements when we might be able to achieve more favorable terms. If we are not able to secure additional funding when needed, we may have to delay, reduce the scope of or eliminate one or more research and development programs or selling and marketing initiatives, or forgo potential acquisitions or investments. In addition, we may have to work with a partner on one or more of our products or development programs, which could lower the economic value of those programs to us. M…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

We lease office and laboratory facilities in South San Francisco and San Diego, California; Austin, Texas; Marseille, France; Richmond, Virginia; and Watertown, Massachusetts, and lease certain equipment under various non-cancelable lease agreements. The lease terms extend to May 2036 and contain extension of lease term and expansion options. As of June 30, 2024, the leases have a weighted average remaining lease term of 6.3 years and total future minimum lease payments of $28.6 million.

Current wording

We lease office and laboratory facilities in South San Francisco and San Diego, California; Austin, Texas; Marseille, France; Richmond, Virginia; and Watertown, Massachusetts, and lease certain equipment under various non-cancelable lease agreements. The lease terms extend to May 2036 and contain extension of lease term and expansion options. As of September 30, 2024, the leases have a weighted average remaining lease term of 6.6 years and total future minimum lease payments of $27.5 million.

Previous wording

Veracyte SAS entered into a lease agreement for a newly constructed facility in Marseille, France. The lease commenced during the three months ended June 30, 2024 and we recorded a lease liability and a corresponding ROU asset of $8.0 million. The initial term of the lease is twelve years with annual rent of approximately $1.3 million, excluding common area maintenance costs.

Current wording

Veracyte SAS entered into a lease agreement for a newly constructed facility in Marseille, France. The lease commenced during the nine months ended September 30, 2024 and we recorded a lease liability and a corresponding ROU asset of $8.0 million. The initial term of the lease is twelve years with annual rent of approximately $1.3 million, excluding common area maintenance costs.

Previous wording

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

Current wording

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

Previous wording

Cash provided by operating activities for the six months ended June 30, 2024 was $20.6 million. Our net income of $3.9 million includes non-cash charges of $17.9 million of stock-based compensation expense, $11.3 million of depreciation and amortization, of which $7.4 million was related to intangible asset amortization, and the remainder was due to a non-cash lease expense of $2.3 million. Cash used as a result of changes in operating assets and liabilities was $17.0 million, primarily composed of an increase in accounts receivable of $10.1 million, an increase in supplies and inventory of $3.3 million, a decrease in operating lease liability of $2.4 million, an increase in prepaids and other current assets of $2.2 million, a decrease in accounts payable of $1.7 million, and an increase in other assets of $1.2 million partially offset by a decrease in accrued liabilities and deferred revenue of $3.9 million.

Current wording

Cash provided by operating activities for the nine months ended September 30, 2024 was $50.6 million. Our net income of $19.0 million includes non-cash charges of $26.6 million of stock-based compensation expense, $17.2 million of depreciation and amortization, of which $11.2 million was related to intangible asset amortization, and the remainder was due to a non-cash lease expense of $3.6 million. Cash used as a result of changes in operating assets and liabilities was $17.1 million, primarily composed of an increase in accounts receivable of $8.4 million, an increase in supplies and inventory of $4.2 million, a decrease in operating lease liability of $3.9 million, a decrease in accounts payable of $3.0 million, and an increase in other assets of $1.7 million, partially offset by a decrease in accrued liabilities and deferred revenue of $3.9 million.

Previous wording

Cash provided by operating activities for the six months ended June 30, 2023 was $14.5 million. Our net loss of $16.5 million includes non-cash charges of $18.4 million of stock-based compensation expense, $13.5 million of depreciation and amortization, of which $10.7 million was related to intangible asset amortization, $1.4 million tied to the impairment of right-of-use and fixed assets, and the remainder was due to a non-cash lease expense of $2.0 million. Cash used as a result of changes in operating assets and liabilities was $4.0 million, primarily composed of a decrease in accrued liabilities and deferred revenue of $3.7 million, an increase in prepaids and other current assets of $2.5 million, a decrease in operating lease liability of $2.1 million, and an increase in other assets of $1.0 million. These amounts were partially offset by a decrease in supplies and inventory of $2.8 million, a decrease in accounts receivable of $1.8 million, and an increase in accounts payable of $0.8 million.

Current wording

Cash provided by operating activities for the nine months ended September 30, 2023 was $28.7 million. Our net loss of $46.1 million includes non-cash charges of $25.6 million of stock-based compensation expense, $20.9 million of depreciation and amortization, of which $16.0 million was related to intangible asset amortization, $36.3 million tied to the impairment of long-lived assets, $5.5 million from the revaluation of contingent consideration and the remainder was due to a non-cash lease expense of $3.1 million. Cash used as a result of changes in operating assets and liabilities was $5.6 million, primarily composed of a decrease in accrued liabilities and deferred revenue of $3.4 million, a decrease in operating lease liability of

Previous wording

Cash provided by investing activities for the six months ended June 30, 2024 was $0.1 million, consisting of $5.0 million net cash acquired from C2i excluding post-close transactions costs, partially offset by $4.9 million used in the purchase of property, plant and equipment.

Current wording

Cash used in investing activities for the nine months ended September 30, 2024 was $2.1 million, consisting of $7.1 million used in the purchase of property, plant and equipment, partially offset by $5.0 million net cash acquired from C2i excluding post-close transactions costs.

Previous wording

Cash provided by investing activities for the six months ended June 30, 2023 was $20.4 million, consisting of $44.8 million generated from the sale and maturity of short-term investments, partially offset by $19.7 million used in the purchase of short-term investments and $4.7 million used in the purchase of property, plant and equipment.

Current wording

Cash provided by investing activities for the nine months ended September 30, 2023 was $17.6 million, consisting of $44.8 million generated from the sale and maturity of short-term investments, partially offset by $19.7 million used in the purchase of short-term investments and $7.5 million used in the purchase of property, plant and equipment.

Previous wording

Cash used in financing activities for the six months ended June 30, 2024 was $0.9 million, consisting of $5.1 million in tax payments during the period related to the vesting of restricted stock units granted to employees, partially offset by $4.3 million in proceeds from the exercise of options to purchase our common stock and the purchase of stock under our Employee Stock Purchase Plan, or ESPP.

Current wording

Cash provided by financing activities for the nine months ended September 30, 2024 was $9.4 million, consisting of $16.7 million in proceeds from the exercise of options to purchase our common stock and the purchase of stock under our Employee Stock Purchase Plan, or ESPP, partially offset by $7.3 million in tax payments during the period related to the vesting of restricted stock units granted to employees.

Previous wording

Cash provided by financing activities for the six months ended June 30, 2023 was $2.1 million, consisting of $5.3 million in proceeds from the exercise of options to purchase our common stock and the purchase of stock under our ESPP, partially offset by $3.2 million in tax payments during the period related to the vesting of restricted stock units granted to employees.

Current wording

Cash provided by financing activities for the nine months ended September 30, 2023 was $2.2 million, consisting of $7.8 million in proceeds from the exercise of options to purchase our common stock and the purchase of stock under our ESPP, partially offset by $5.6 million in tax payments during the period related to the vesting of restricted stock units granted to employees