Natera, Inc.

Previous wording

We are a diagnostics company with proprietary molecular and bioinformatics technology that we are applying to change the management of disease worldwide. Our cell-free DNA, or cfDNA, technology combines our novel molecular assays, which reliably measure many informative regions across the genome from samples as small as a single cell, with our statistical algorithms which incorporate data available from the broader scientific community to identify genetic variations covering a wide range of serious conditions with high accuracy and coverage. We aim to make personalized genetic testing and diagnostics part of the standard of care to protect health and inform earlier and more targeted interventions that help lead to longer, healthier lives.

Current wording

We are a diagnostics company with proprietary molecular and bioinformatics technology that we are applying to change disease management worldwide. Our cell-free DNA, or cfDNA, technology combines our novel molecular assays, which reliably measure many informative regions across the genome , from samples as small as a single cell, with our statistical algorithms that incorporate data available from the broader scientific community to identify genetic variations, covering a wide range of serious conditions with high accuracy and coverage. We aim to make personalized genetic testing and diagnostics part of the standard of care to protect health and inform earlier and more targeted interventions that help lead to longer, healthier lives.

Previous wording

We currently provide a comprehensive suite of products in women’s health, as well as our oncology and organ health products, and our Constellation cloud-based platform. We generate a majority of our revenues from the sale of Panorama, our non-invasive prenatal test, or NIPT, as well as Horizon, our Carrier Screening, test. In addition to Panorama and Horizon, our product offerings in women’s health include Spectrum Preimplantation Genetics, our Anora miscarriage test, and Vistara single-gene NIPT, as well as our Empower hereditary cancer screening test, which we also plan to offer to oncologists through our oncology sales channel. We also offer our Signatera molecular residual disease test for oncology applications, which we commercialize as a test run in our CLIA (as defined below) laboratory and offer on a research use only basis to research laboratories and pharmaceutical companies; and our Prospera organ transplant assessment tests.

Current wording

We currently provide a comprehensive suite of products in women’s health, oncology and organ health, as well as our Constellation cloud-based platform. We generate the majority of our revenues from the sale of Panorama, our non-invasive prenatal test (“NIPT”) and Horizon, our genetic carrier screening test. In addition to Panorama, our product offerings in women’s health also include Spectrum preimplantation genetic testing, our IVF embryo screening; Anora, our test to help determine underlying reasons for occurrence of miscarriage, Vistara, our single-gene NIPT that screens for conditions that may affect quality of life, and Fetal Focus, our noninvasive prenatal test for inherited conditions. Our product offerings in organ health include Prospera, a transplant rejection assessment test that evaluates risk of rejection in kidney transplants. In oncology, in addition to Horizon, we also offer Empower, our hereditary cancer screening test, which we also plan to offer to oncologists through our oncology sales channel; and Signatera, our molecular residual disease test for oncology applications, which we commercialized as a test run in our CLIA (as defined below) laboratory and offer on a research use only basis to research laboratories and pharmaceutical companies.

Previous wording

In addition to offering tests to be performed at our laboratories, either directly or through our laboratory distribution partners, we also establish licensing arrangements with laboratories under Constellation, our cloud-based distribution model, whereby our laboratory licensees run the molecular workflows themselves and then access our bioinformatics algorithms through our cloud-based software. This cloud-based distribution model results in lower revenues and gross profit per test than cases in which we process a test ourselves; however, because we do not incur the costs of processing the tests, our costs per test under this model are also lower. We began entering into these licensing arrangements starting in the fourth quarter of 2015.

Current wording

In addition to offering tests to be performed at our laboratories, either directly or through our laboratory distribution partners, we also establish licensing arrangements with laboratories under Constellation, our cloud-based distribution model, whereby our laboratory licensees run the molecular workflows themselves and then access our bioinformatics algorithms through our cloud-based software. This cloud-based distribution model results in lower revenues and gross profit per test than cases in which we process a test ourselves; however, because we do not incur the costs of processing the tests, our costs per test under this model are also lower.

Previous wording

During the three months ended March 31, 2025, we processed approximately 855,100 tests, comprised of approximately 840,800 tests accessioned in our laboratory, compared to approximately 735,800 tests processed, comprised of approximately 718,700 tests accessioned in our laboratory, during the three months ended March 31, 2024. This increase in volume primarily represents continued commercial growth of Signatera, Panorama and Horizon, both as tests performed in our laboratory as well as through our Constellation software platform.

Current wording

During the six months ended June 30, 2025, we processed approximately 1,708,200 tests, comprised of approximately 1,680,100 tests accessioned in our laboratory, compared to approximately 1,496,000 tests processed, comprised of approximately 1,462,800 tests accessioned in our laboratory, during the six months ended June 30, 2024. This increase in volume primarily represents continued commercial growth of Signatera, Panorama and Horizon, both as tests performed in our laboratory as well as through our Constellation software platform.

Previous wording

The percent of our revenues attributable to our U.S. direct sales force for the three months ended March 31, 2025 was 96%, an increase compared to 94% for the three months ended March 31, 2024. The percent of our revenues attributable to U.S. laboratory distribution partners for the three months ended March 31, 2025 was 2%, a decrease compared to 5% from the same period in the prior year. Our ability to increase our revenues and gross profit will depend on our ability to further penetrate the U.S. market with our direct sales force. The percent of our revenues attributable to international laboratory distribution partners and other international sales for the three months ended March 31, 2025 was 2%, approximately the same as in the three months ended March 31, 2024.

Current wording

The percent of our revenues attributable to our U.S. direct sales force for the six months ended June 30, 2025 was 96%, an increase compared to 95% for the six months ended June 30, 2024. The percent of our revenues attributable to U.S. laboratory distribution partners for the six months ended June 30, 2025 was 2%, a decrease compared to 3% from the same period in the prior year. Our ability to increase our revenues and gross profit will depend on our ability to further penetrate the U.S. market with our direct sales force. The percent of our revenues attributable to international laboratory distribution partners and other international sales for both the six months ended June 30, 2025 and 2024 was 2%.

Previous wording

For the three months ended March 31, 2025, total revenues were $501.8 million compared to $367.7 million in the three months ended March 31, 2024. Product revenues accounted for $500.0 million, nearly 100% of total revenues for the three months ended March 31, 2025 compared to $364.7 million representing 99% of total revenues for the three months ended March 31, 2024. For the three months ended March 31, 2025 and 2024, no customers exceeded 10% of the total revenues on an individual basis. Revenues from customers outside the United States were $9.5 million, representing approximately 2% of total revenues for the three months ended March 31, 2025. For the three months ended March 31, 2024, revenues from customers outside the United States were $8.3 million, representing approximately 2% total revenues. Most of our revenues have been denominated in U.S. dollars, though we generate some revenue in foreign currency, primarily denominated in Euros and Singapore Dollars.

Current wording

For the six months ended June 30, 2025, total revenues were $1,048.4 million compared to $781.1 million in the six months ended June 30, 2024. Product revenues accounted for $1,044.5 million, nearly 100% of total revenues for the six months ended June 30, 2025 compared to $776.0 million, representing 99% of total revenues for the six months ended June 30, 2024. For the six months ended June 30, 2025 and 2024, no customers exceeded 10% of the total revenues on an individual basis. Revenues from customers outside the United States were $18.3 million, representing approximately 2% of total revenues for the six months ended June 30, 2025. For the six months ended June 30, 2024, revenues from customers outside the United States were $16.8 million, representing approximately 2% total revenues. Most of our revenues have been denominated in U.S. dollars, though we generate some revenue in foreign currency, primarily denominated in Euros and Singapore Dollars.

Previous wording

Our net loss for the three months ended March 31, 2025 and 2024 was $66.9 million and $67.6 million, respectively. This included non-cash stock compensation expense of $77.8 million and $64.4 million for the three months ended March 31, 2025 and 2024, respectively. As of March 31, 2025, we had an accumulated deficit of $2.6 billion.

Current wording

Our net loss for the six months ended June 30, 2025 and 2024 was $167.9 million and $105.1 million, respectively. This included non-cash stock compensation expense of $171.2 million and $131.9 million for the six months ended June 30, 2025 and 2024, respectively. As of June 30, 2025, we had an accumulated deficit of $2.7 billion.

Previous wording

Our ability to increase our revenues will depend on our ability to further penetrate the domestic and international markets and, in particular, generate sales through our direct sales force, develop and commercialize additional tests, obtain reimbursement from additional third-party payers and increase our reimbursement rates for tests performed. For example, our financial performance depends on reimbursement for microdeletions testing. Many third-party payers do not currently reimburse for microdeletions screening in part because there has historically been limited published data on the performance of microdeletions screening tests, with oursingle nucleotide polymorphism-based Microdeletion and Aneuploidy RegisTry, or SMART study results only being published in early 2022.

Current wording

Our ability to increase our revenues will depend on our ability to further penetrate the domestic and international markets and, in particular, generate sales through our direct sales force, develop and commercialize additional tests, obtain reimbursement from additional third-party payers and increase our reimbursement rates for tests performed. For example, our financial performance depends on reimbursement for microdeletions testing. Many third-party payers do not currently reimburse for microdeletions screening in part because there has historically been limited published data on the performance of microdeletions screening tests, with our single nucleotide polymorphism-based Microdeletion and Aneuploidy RegisTry, or SMART study results only being published in early 2022.

Previous wording

The components of our cost of product revenues are material and service costs, impairment charges associated with testing equipment, personnel costs, including stock-based compensation expense, equipment and infrastructure expenses associated with testing samples, electronic medical records, order and delivery systems, shipping charges to transport samples, costs incurred from third party test processing fees, and allocated overhead such as rent, information technology costs, equipment depreciation and utilities. Costs associated with Whole Exome Sequencing, are also included, as well as labor costs, relating to our Signatera CLIAand Signatera research use only offerings. Costs associated with performing tests are recorded when the test is accessioned. We expect cost of product revenues in absolute dollars to increase as the number of tests we perform increases.

Current wording

The components of our cost of product revenues are material and service costs, impairment charges associated with testing equipment, personnel costs, including stock-based compensation expense, equipment and infrastructure expenses associated with testing samples, electronic medical records, order and delivery systems, shipping charges to transport samples, costs incurred from third party test processing fees, and allocated overhead such as rent, information technology costs, equipment depreciation and utilities. Costs associated with Whole Exome Sequencing, are also included, as well as labor costs, relating to our Signatera CLIA and Signatera research use only offerings. Costs associated with performing tests are recorded when the test is accessioned. We expect cost of product revenues in absolute dollars to increase as the number of tests we perform increases.

Previous wording

Total revenues are comprised of product revenues, which are primarily driven by sales of our Panorama and Horizon tests, oncology testing, and licensing and other revenues, which primarily includes development licensing revenue and licensing of our Constellation software. Total revenues for the three months ended March 31, 2025 increased by $134.1 million, or 36.5%, when compared to the three months ended March 31, 2024.

Current wording

Total revenues are comprised of product revenues, which are primarily driven by sales of our Panorama and Horizon tests, oncology testing, and licensing and other revenues, which primarily includes development licensing revenue and licensing of our Constellation software. Total revenues for the three months ended June 30, 2025 increased by $133.2 million, or 32.2%, when compared to the three months ended June 30, 2024.

Previous wording

We derive our revenues from tests based on units reported to customers—tests delivered with a result. All reported units are either accessioned in our laboratory or processed outside of our laboratory. As noted in the section titled “Overview” above, the number of tests that we process is a key metric as it tracks our overall volume growth. During the three months ended March 31, 2025, total reported units were approximately 804,800, comprised of approximately 791,400 tests reported in our laboratory. Comparatively, during the three months ended March 31, 2024, total reported units were approximately 679,400, comprising of approximately 663,500 tests reported in our laboratory. During the three months ended March 31, 2025 and 2024, total oncology units processed were approximately 167,700 and 114,800, respectively.

Current wording

We derive our revenues from tests based on units reported to customers—tests delivered with a result. All reported units are either accessioned in our laboratory or processed outside of our laboratory. As noted in the section titled “Overview” above, the number of tests that we process is a key metric as it tracks our overall volume growth. During the three months ended June 30, 2025, total reported units were approximately 812,900, comprised of approximately 799,900 tests reported in our laboratory. Comparatively, during the three months ended June 30, 2024, total reported units were approximately 725,200, which is comprised of approximately 709,800 tests reported in our laboratory. During the three months ended June 30, 2025 and 2024, total oncology units processed were approximately 188,800 and 125,400, respectively.

Previous wording

During the three months ended March 31, 2025, product revenues increased by $135.4 million, or 37.1%, compared to the three months ended March 31, 2024, primarily due to continued revenue growth from increased test volumes and average selling price improvements.

Current wording

During the three months ended June 30, 2025, product revenues increased by $133.1 million, or 32.3%, compared to the three months ended June 30, 2024, primarily due to continued revenue growth from increased test volumes, and average selling price improvements.

Previous wording

Licensing and other revenues decreased by $1.3 million, or 41.5%, during the three months ended March 31, 2025 when compared to the three months ended March 31, 2024. The decrease was primarily due to a decrease in revenue from our collaborative agreements.

Current wording

Licensing and other revenues increased by $0.2 million, or 9.4%, during the three months ended June 30, 2025 when compared to the three months ended June 30, 2024. The increase was primarily due to an increase in revenue from our collaborative agreements.

Previous wording

During the three months ended March 31, 2025, cost of product revenues increased compared to the three months ended March 31, 2024 by approximately $25.8 million, or 16.2%, primarily due to higher costs related to inventory consumption of $11.6 million driven by an increase in accessioned cases, a $5.3 million increase in third-party fees, and a $8.9 million increase in labor, overhead, and other related costs driven by headcount growth and product support.

Current wording

During the three months ended June 30, 2025, cost of product revenues increased compared to the three months ended June 30, 2024 by approximately $29.7 million, or 17.5%, primarilydue to a $2.6 million increase in third-party fees, higher costs related to inventory consumption of $12.4 million driven by an increase in accessioned cases, and a $14.7 million increase in equipment and related depreciation expense, labor, overhead, shipping and other related costs driven by headcount growth and product support.

Previous wording

Cost of licensing and other revenues for the three months ended March 31, 2025, increased by $0.1 million, or 47.2%, compared to the three months ended March 31, 2024, primarily due to a net increase in costs to support our collaborative agreements.

Current wording

The cost of licensing and other revenues for the three months ended June 30, 2025, slightly increased compared to the three months ended June 30, 2024, primarily due to a net increase in costs to support our collaborative agreements.

Previous wording

Research and development expenses during the three months ended March 31, 2025, increased by $40.4 million, or 45.6%, when compared to the three months ended March 31, 2024. The increase was attributable to a $24.9 million increase in salary and related compensation expenditures, which includes a $6.0 million increase in stock-based compensation expense, a $7.5 million net increase in lab and clinical trial related expenses, and a $8.0 million increase primarily due to consulting, travel, office, facilities, and other expenses.

Current wording

Research and development expenses during the three months ended June 30, 2025, increased by $57.3 million, or 64.3%, when compared to the three months ended June 30, 2024. The increase was attributable to a $31.9 million increase in salary and related compensation expenditures, (including a $8.8 million increase in stock-based compensation expense), a $5.5 million increase in consulting expenses, a $5.7 million increase in office related expenses, a $10.1 million increase in lab and clinical trial-related expenses, and a $4.1 million net increase in travel, office, facilities, and other expenses.

Previous wording

Interest and other income for the three months ended March 31, 2025, increased $3.2 million compared to the same period in the prior year, primarily due to the $3.2 million gain on revaluation of warrants and preferred shares.

Current wording

Interest and other income for the three months ended June 30, 2025, increased $0.3 million compared to the same period in the prior year, primarily due to higher interest income driven by greater cash and investment balances.

Previous wording

Selling, general and administrative expenses increased by $72.6 million, or 37.4%, during the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase was primarily due to a $38.4 million increase in salary and related compensation expenditures, which includes a $6.0 million increase in stock-based compensation expense, a $8.1 million increase in consulting and legal expenses, a $4.6 million increase in office costs, a $4.3 million increase in marketing costs, a $4.2 million increase in vendor expenses, and a $13.0 million increase in travel, facilities, and other costs.

Current wording

Selling, general and administrative expenses increased by $185.2 million, or 47.2%, during the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The increase was attributable to an increase of $98.0 million in salary and related compensation expenditures (including a $20.8 million increase in stock-based compensation expense), a $28.1 million increase in consulting expenses, a $9.0 million increase in marketing expenses, an $8.2 million increase in office costs, a $5.7 million increase in vendor expenses, a $30.7 million increase in legal related expenses, and a $5.5 million increase in travel, facilities and other costs.

Previous wording

We have incurred net losses each year since our inception. For the three months ended March 31, 2025, we had a net loss of $66.9 million, and we expect to continue to incur losses in future periods as we continue to devote a substantial portion of our resources to our research and development and commercialization efforts for our existing and new products. As of March 31, 2025, we had an accumulated deficit of $2.6 billion, $973.8 million in cash and cash equivalents and restricted cash, $17.8 million in marketable securities, and $80.3 million of outstanding balance under the Credit Line including accrued interest. As of March 31, 2025, we had $20.0 million remaining and available on the Credit Line.

Current wording

We have incurred net losses each year since our inception. For the six months ended June 30, 2025, we had a net loss of $167.9 million, and we expect to continue to incur losses in future periods as we continue to devote a substantial portion of our resources to our research and development and commercialization efforts for our existing and new products. As of June 30, 2025, we had an accumulated deficit of $2.7 billion. As of June 30, 2025, we had $1.0 billion in cash and cash equivalents and restricted cash, $16.0 million in marketable securities, and $80.3 million of outstanding balance under the Credit Line including accrued interest. As of June 30, 2025, we had $20.0 million remaining and available on the Credit Line.

Previous wording

In September 2015, we entered into a Credit Line with UBS, or the Credit Line, providing for a $50.0 million revolving line of credit which could be drawn in increments at any time. The Credit Line was amended in July 2017 and bears interest at 30-day LIBOR plus 1.10%, and it is secured by a first priority lien and security interest in our money market and marketable securities held in our managed investment account with UBS. UBS has the right to demand full or partial payment of the Credit Line obligations and terminate it, in its discretion and without cause, at any time. The interest rate was subsequently changed to the 30-day Secured Overnight Financing Rate, or SOFR, average, plus 1.21%. The SOFR rate is variable. The Credit Line was subsequently increased from $50.0 million to $150.0 million. In June 2023, the Credit Line decreased to $100.0 million. In October 2023, the interest rate for the Credit Line was changed to the 30-day SOFR average, plus 0.5%. As of March 31, 2025, the total principal amount outstanding with accrued interest was $80.3 million and $20.0 million is remaining as available under the Credit Line.

Current wording

In September 2015, we entered into a Credit Line with UBS, or the Credit Line, providing for a $50.0 million revolving line of credit which could be drawn in increments at any time. The Credit Line was amended in July 2017 and bears interest at 30-day LIBOR plus 1.10%, and it is secured by a first priority lien and security interest in our money market and marketable securities held in our managed investment account with UBS. UBS has the right to demand full or partial payment of the Credit Line obligations and terminate it, in its discretion and without cause, at any time. The interest rate was subsequently changed to the 30-day Secured Overnight Financing Rate (or “SOFR”) average, plus 1.21%. The SOFR rate is variable. The Credit Line was subsequently increased from $50.0 million to $150.0 million. In June 2023, the Credit Line decreased to $100.0 million. In October 2023, the interest rate for the Credit Line was subsequently changed to the 30-day SOFR average, plus 0.5%. As of June 30, 2025, the total principal amount outstanding with accrued interest was $80.3 million, and $20.0 million is remaining as available under the Credit Line.

Previous wording

Cash provided by operating activities during the three months ended March 31, 2025 was $44.5 million. The net loss of $66.9 million includes $88.0 million in non-cash charges resulting from $9.2 million of depreciation and amortization, $77.8 million of stock-based compensation expense, $4.4 million of non-cash lease expense, and $0.1 million for foreign exchange adjustment, offset by a $0.3 million decrease in non-cash expense recovery and a $3.2 million change in fair value of warrants and preferred stock. Operating assets had cash outflows of $19.1 million resulting from a $9.4 million increase in prepaid expenses and other assets, a $4.1 million increase in accounts receivable, and a $5.6 million increase in inventory. Operating liabilities resulted in cash inflows of $42.5 million resulting from a $2.4 million increase in accounts payable, a $17.0 million increase in accrued compensation, a $26.9 million increase in other accrued liabilities and a $0.7 million increase in deferred revenue, offset by a $4.5 million decrease in lease liabilities.

Current wording

Cash provided by operating activities during the six months ended June 30, 2025 was $82.0 million. The net loss of $167.9 million includes $195.7 million in non-cash charges resulting from $19.1 million of depreciation and amortization, $171.2 million of stock-based compensation expense, and $9.3 million of non-cash lease expense, offset by a $3.2 million change in fair value of warrants and preferred stock and a $0.7 million decrease in non-cash expense recovery. Operating assets had cash outflows of $11.2 million resulting from a $9.5 million increase in inventory and a $6.6 million increase in prepaid expenses and other assets, offset by a $4.9 million decrease in accounts receivable. Operating liabilities had cash inflows of $65.4 million resulting from a $7.0 million increase in accounts payable, a $25.8 million increase in accrued compensation, a $40.4 million increase in other accrued liabilities, and a $1.5 million increase in deferred revenue, offset by a $9.3 million decrease in lease liabilities.

Previous wording

Cash provided by operating activities during the three months ended March 31, 2024 was $27.0 million. The net loss of $67.6 million includes $75.3 million in non-cash charges resulting from $7.1 million of depreciation and amortization, $64.4 million of stock-based compensation expense, $3.6 million of non-cash lease expense, $0.3 million for amortization of debt discount and issuance cost, $0.4 million for foreign exchange adjustment, offset by $0.5 million premium amortization and discount accretion on investment securities. Operating assets had cash inflows of $1.7 million resulting from a $14.4 million decrease in prepaid expenses and other assets, offset by a $10.5 million increase in accounts receivable, a $2.2 million increase in inventory. Operating liabilities resulted in cash inflows of $17.6 million resulting from a $10.7 million increase in accounts payable, a $17.8 million increase in accrued compensation, and a $0.8 million increase in deferred revenue, offset by a $4.1 million decrease in lease liabilities and a $7.6 million decrease in other accrued liabilities.

Current wording

Cash provided by operating activities during the six months ended June 30, 2024 was $31.0 million. The net loss of $105.1 million includes $154.5 million in non-cash charges resulting from $15.0 million of depreciation and amortization, $131.9 million of stock-based compensation expense, $7.2 million of non-cash lease expense, $0.6 million for amortization of debt discount and issuance cost, and $0.4 million for foreign exchange adjustment, offset by a $0.6 million decrease in premium amortization and discount accretion on investment securities. Operating assets had cash outflows of $36.9 million resulting from a $57.6 million increase in accounts receivable, a $0.2 million increase in inventory, offset by a $20.9 million decrease in prepaid expenses and other assets. Operating liabilities resulted in cash inflows of $18.5 million resulting from a $16.7 million increase in accounts payable, $19.7 million increase in accrued compensation and a $1.0 million increase in deferred revenue, offset by, a $8.3 million decrease in lease liabilities and a $10.6 million decrease in other accrued liabilities.

Previous wording

Cash used in investing activities for the three months ended March 31, 2025 totaled $16.8 million, comprised of $21.8 million in acquisitions of property and equipment, offset by $5.0 million from proceeds of investments maturities.

Current wording

Cash used by investing activities for the six months ended June 30, 2025 totaled $40.7 million, comprised of $47.7 million in acquisitions of property and equipment offset by $7.0 million from proceeds of investments maturities.

Previous wording

Cash provided by investing activities for the three months ended March 31, 2024 totaled $138.3 million, which was comprised of $169.1 million from proceeds of investments maturities, offset by $20.3 million in acquisitions of property and equipment and $10.5 million in asset acquisition.

Current wording

Cash provided by investing activities for the six months ended June 30, 2024 totaled $106.2 million, which was comprised of $221.5 million from proceeds of investments maturities, offset by $72.8 million in new investment purchases, $32.0 million in acquisitions of property and equipment and $10.5 million in asset acquisition.

Previous wording

Cash provided by financing activities for the three months ended March 31, 2025, totaled $0.5 million which was comprised of proceeds from the exercise of stock options.

Current wording

Cash provided by financing activities for the six months ended June 30, 2025, totaled $13.1 million which was comprised of $0.9 million from proceeds from the exercise of stock options and $12.2 million from the issuance of common stock under the employee stock purchase plan.

Previous wording

Cash provided by financing activities for the three months ended March 31, 2024, totaled $6.5 million which was comprised of proceeds from the exercise of stock options.

Current wording

Cash provided by financing activities for the six months ended June 30, 2024, totaled $17.5 million which was comprised of $8.6 million from proceeds from the exercise of stock options and $8.9 million from the issuance of common stock under the employee stock purchase plan.

Previous wording

Our lease commitments consist of $3.4 million of payments, which will be paid over the terms of the leases. The leases have not commenced under Accounting Standards Codification, or ASC, Topic 842,Leases, as of March 31, 2025. As a result, these leases are not reflected within the consolidated balance sheets.

Current wording

Our lease commitments consist of $1.7 million of payments, which will be paid over the terms of the leases. The leases have not commenced under Accounting Standards Codification, or ASC, Topic 842, Leases, as of June 30, 2025. As a result, these leases are not reflected within the consolidated balance sheets.