AbCellera Biologics Inc.

Previous wording

Additionally, inflation generally affects us by increasing our employee-related costs and certain other expenses. Our financial condition and results of operations may also be impacted by other factors we may not be able to control, such as global supply chain disruptions, uncertain global economic conditions, global trade disputes or political instability as further discussed in the section “Risk Factors” in this Quarterly Report.

Current wording

Additionally, inflation generally affects us by increasing our employee-related costs and certain other expenses. Our financial condition and results of operations may also be impacted by other factors we may not be able to control, such as global supply chain disruptions, potential trade tariffs in Canada and the U.S., uncertain global economic conditions, global trade disputes or political instability as further discussed in the section “Risk Factors” in this Quarterly Report.

Previous wording

We have started a cumulative total 97 partner-initiated programs with downstream participation and have seen a cumulative total 16 molecules advanced into the clinic, as illustrated by the following chart.

Current wording

We have started a cumulative total of 102 partner-initiated programs with downstream participation and have seen a cumulative total 18 molecules advanced into the clinic, as illustrated by the following chart.

Previous wording

The following table summarizes our key operating results for the three months ended March 31, 2024 and March 31, 2025. All figures are in U.S. dollars and amounts are expressed in thousands, except loss per share data:

Current wording

The following table summarizes our key operating results for the three and six months ended June 30, 2024 and June 30, 2025. All figures are in U.S. dollars and amounts are expressed in thousands, except loss per share data:

Previous wording

(1)Exclusive of depreciation and amortization

Current wording

(1)Exclusive of depreciation, amortization, and impairment

Previous wording

Comparison of the three months ended March 31, 2024 and March 31, 2025:

Current wording

Comparison of the three and six months ended June 30, 2024 and June 30, 2025:

Previous wording

Revenue decreased by $5.7 million from the three months ended March 31, 2024 compared to the three months ended March 31, 2025. The decrease in research fees in both periods was attributable to the timing and increased prioritization of our research and development efforts towards internal programs.

Current wording

Revenue increased by $9.8 million from the three months ended June 30, 2024 compared to the three months ended June 30, 2025 and increased $4.0 million from the six months ended June 30, 2024 compared to the six months ended June 30, 2025. The increase in both periods was primarily attributable to licensing revenue recognized, partially offset by no milestones achieved in 2025 and the timing and increased prioritization of our research and development efforts towards internal programs.

Previous wording

Sales and marketing expenses decreased by $0.5 million, or (16)%, from the three months ended March 31, 2024 compared to the three months ended March 31, 2025. The decrease was attributable to a reduction in consulting fees and other expenses related to our business development activity.

Current wording

Sales and marketing expenses decreased by $0.1 million, or (4)%, from the three months ended June 30, 2024 compared to the three months ended June 30, 2025, anddecreased by $0.7 million, or(10)%, from thesix months ended June 30, 2024 compared to thesix months ended June 30, 2025. Thedecrease in both periods was attributable to a reduction in total compensation expense and other expenses related to our business development activity.

Previous wording

Interest income decreased by$2.4 million, or(23)%, from the three months ended March 31, 2024 compared to the three months ended March 31, 2025. The decrease was primarily driven by our cash, cash equivalents, and marketable securities balances and interest rate yields in the period.

Current wording

Interest income decreased by$2.2 million, or(23)%, from the three months ended June 30, 2024 compared to the three months ended June 30, 2025 and decreased$4.6 million, or (23)%, from the six months ended June 30, 2024 compared to the six months ended June 30, 2025. The decrease was primarily driven by our cash, cash equivalents, and marketable securities balances and interest rate yields in the period.

Previous wording

Grants and incentives increased by$0.9 million, or 27%, from the three months ended March 31, 2024 compared to the three months ended March 31, 2025. The change was primarily driven by activity relating to research and development expenditures that are eligible for reimbursement under government programs for the period.

Current wording

Grants and incentives increased by$0.4 million, or 12%, from the three months ended June 30, 2024 compared to the three months ended June 30, 2025 and increased by$1.3 million, or 19%, from the six months ended June 30, 2024 and six months ended June 30, 2025. The increase was primarily driven by activity relating to research and development expenditures that are eligible for reimbursement under government programs for the period.

Previous wording

Other expense increased by$1.0 million from the three months ended March 31, 2024 compared to the three months ended March 31, 2025. The increase was primarily due to a foreign exchange loss in the period due to fluctuations in the Canadian and U.S. dollar exchange rate, partially offset by fair value adjustments.

Current wording

Other income decreased by$30.2 million from the three months ended June 30, 2024 compared to the three months ended June 30, 2025 and decreased$31.2 million from the six months ended June 30, 2024 compared to the six months ended June 30, 2025. Further to the intangible asset impairment discussion above, at June 30, 2024, the fair value of the contingent consideration was adjusted to reflect the expected value of the Company's ongoing internal program portfolio prioritization, resulting in a $32.4 million non-cash fair value gain primarily attributable for the decrease. The decrease in other income was partially offset due to a foreign exchange gain in the period due to fluctuations in the Canadian and U.S. dollar exchange rate and other fair value adjustments.

Previous wording

Income tax recovery increased by$5.2 million from the three months ended March 31, 2024 compared to the three months ended March 31, 2025. The increase was primarily driven by the current net loss and a change in effective income tax rates impacted from the availability of carry-back of losses to recover previously paid taxes.

Current wording

Income tax recovery decreased by$9.6 million from the three months ended June 30, 2024 compared to the three months ended June 30, 2025 and decreased by$4.4 million or (33)% from the six months ended June 30, 2024 compared to six months ended June 30, 2025. The decrease was primarily driven by the current net loss and a change in effective income tax rates impacted from the availability of carry-back of losses to recover previously paid taxes.

Previous wording

As of March 31, 2025, we had $605.3 million of cash, cash equivalents and marketable securities, comprising $159.3 million in cash and cash equivalents and $446.0 million in marketable securities. The decrease of $20.3 million since December 31, 2024, was primarily from a combination of cash flow used in operations due to our continued research and development activity, execution of internal and partnered programs, building our internal pipeline, and investments in our corporate headquarters andclinical manufacturing facility under construction, partially offset by government contributions received in the three months ended March 31, 2025.

Current wording

As of June 30, 2025, we had $553.1 million of cash, cash equivalents and marketable securities, comprising $92.4 million in cash and cash equivalents and $460.6 million in marketable securities. The decrease of $72.5 million since December 31, 2024, was primarily from a combination of cash flow used in operations due to our continued research and development activity, execution of internal and partnered programs, building our internal pipeline, and investments in our corporate headquarters andclinical manufacturing facility under construction, partially offset by government contributions received in thesix months ended June 30, 2025.

Previous wording

While we have generated positive operating cash flows in the past, we intend to significantly invest in our business, and as a result may continue to incur operating losses in future periods. We will continue to use our significant available liquidity from our cash, cash equivalents, and marketable securities to fund and invest in research and development efforts towards expanding our capabilities and expertise, execute and build our internal pipeline, and the expansion of our corporate headquarters, clinical manufacturing facility and related infrastructure, including optimization of long-term office-lease arrangements. In 2025, we are on track to complete our final large platform investments in our clinical manufacturing facility and our corporate headquarters. With the completion of these large platform investments, we expect a significant reduction in investing cash flows, shifting our capital allocation from building capabilities to using them as we execute our strategy of building on our pipeline of first-in-class and best-in-class medicines. Based on our current business plan, we believe that our available liquidity from existing cash, cash equivalents, marketable securities, loan receivables, and government contributions, will be sufficient to meet our working capital and capital expenditure needs and do not anticipate the need of additional external funding over at least the next 36 months following the date of this report.

Current wording

In 2025, we are on track to complete our final large platform investments in our clinical manufacturing facility and our corporate headquarters. With the completion of these large platform investments, we expect a significant reduction in investing cash flows, shifting our capital allocation from building capabilities to using them as we execute our strategy of building on our pipeline of first-in-class and best-in-class medicines. Based on our current business plan, we believe that our available liquidity from existing cash, cash equivalents, marketable securities, loan receivables, and government contributions, will be sufficient to meet our working capital and capital expenditure needs and do not anticipate the need of additional external funding over at least the next 36 months following the date of this report.

Previous wording

Net cash used in operating activities decreased from $41.7 million in the three months ended March 31, 2024 to $11.6 million in the three months ended March 31, 2025. The decrease in cash flows used in operations was primarily attributable to an increase in deferred revenues and working capital movements including a reduction in accounts and grants receivable in three months ended March 31, 2025.

Current wording

Net cash used in operating activities decreased from $71.7 million in thesix months ended June 30, 2024 to $44.0 million in thesix months ended June 30, 2025. The decrease in cash flows used in operations was primarily attributable to an increase in deferred revenues and working capital movements including a reduction in accounts and grants receivable in six months ended June 30, 2025.

Previous wording

Net cash provided by investing activities decreased from $29.9 million in the three months ended March 31, 2024 to $7.9 million in the three months ended March 31, 2025. The decrease in cash provided by investing activities was primarily attributable to a reduction in grant funding received in the period, property and equipment expenditure, and proceeds from marketable securities in thethree months ended March 31, 2025.

Current wording

Net cash associated with investing activities changed from $82.0 million provided by investing activities in thesix months ended June 30, 2024 to $23.9 million used in investing activities in thesix months ended June 30, 2025. The decrease in cash provided by investing activities was primarily attributable to a reduction in grant funding received in the period and proceeds from marketable securities, partially offset by an increase in purchases of other long-term assets in the six months ended June 30, 2025.

Previous wording

Net cash provided by financing activities increased from $2.8 million in the three months ended March 31, 2024 to $6.0 million in thethree months ended March 31, 2025. The increase was primarily attributable toproceeds from other long-term liabilities.

Current wording

Net cash provided by financing activities decreased from $5.5 million in thesix months ended June 30, 2024 to $2.6 million in the six months ended June 30, 2025. The decrease was primarily attributable to the contingent consideration paid entirely in the second quarter of 2025, partially offset by proceeds from other long-term liabilities.

Previous wording

Detailed information about our critical accounting policies and estimates is set forth in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024. There have been no significant changes to these policies during the three months ended March 31, 2025.

Current wording

Detailed information about our critical accounting policies and estimates is set forth in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024. There have been no significant changes to these policies during thesix months ended June 30, 2025.