What changed in Alpha Teknova, Inc.'s 10-K — 2023 vs 2024
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Paragraph-level year-over-year comparison of Alpha Teknova, Inc.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.
+101 added−111 removedSource: 10-K (2025-03-07) vs 10-K (2024-03-27)
Top changes in Alpha Teknova, Inc.'s 2024 10-K
101 paragraphs added · 111 removed · 77 edited across 1 sections
- Item 1C. Cybersecurity+101 / −111 · 77 edited
Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
77 edited+24 added−34 removed56 unchanged
Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
77 edited+24 added−34 removed56 unchanged
2023 filing
2024 filing
Biggest changeResults of Operations The following tables set forth our results of operations for the years ended December 31, 2023 and 2022 (dollars in thousands): For the Year Ended December 31, 2023 2022 $ Change % Change Revenue $ 36,684 $ 41,420 $ (4,736 ) (11.4 )% Cost of sales 26,388 23,944 2,444 10.2 % Gross profit 10,296 17,476 (7,180 ) (41.1 )% Operating expenses: Research and development 5,567 7,737 (2,170 ) (28.0 )% Sales and marketing 9,330 9,151 179 2.0 % General and administrative 25,450 28,298 (2,848 ) (10.1 )% Amortization of intangible assets 1,148 1,148 — — Goodwill impairment — 16,613 (16,613 ) (100.0 )% Tradename impairment 2,169 — 2,169 100.0 % Long-lived assets impairment 2,195 4,188 (1,993 ) (47.6 )% Total operating expenses 45,859 67,135 (21,276 ) (31.7 )% Loss from operations (35,563 ) (49,659 ) 14,096 (28.4 )% Other (expenses) income, net Interest (expense) income, net (833 ) 213 (1,046 ) (491.1 )% Other income, net 142 55 87 158.2 % Loss on extinguishment of debt (824 ) — (824 ) (100.0 )% Total other (expenses) income, net (1,515 ) 268 (1,783 ) (665.3 )% Loss before income taxes (37,078 ) (49,391 ) 12,313 (24.9 )% Benefit from income taxes (298 ) (1,923 ) 1,625 (84.5 )% Net loss $ (36,780 ) $ (47,468 ) $ 10,688 (22.5 )% 61 Revenue Our revenue disaggregated by product category, for the years ended December 31, 2023 and 2022 was as follows (dollars in thousands): For the Year Ended December 31, 2023 2022 $ Change % Change Lab Essentials $ 28,800 $ 31,772 $ (2,972 ) (9.4 )% Clinical Solutions 6,738 8,445 (1,707 ) (20.2 )% Other 1,146 1,203 (57 ) (4.7 )% Total revenue $ 36,684 $ 41,420 $ (4,736 ) (11.4 )% Total revenue was $36.7 million in 2023, a decrease of $4.7 million, or 11.4%, compared with $41.4 million in 2022.
Biggest changeResults of Operations The following tables set forth our results of operations for the years ended December 31, 2024 and 2023 (dollars in thousands): For the Year Ended December 31, 2024 2023 $ Change % Change Revenue $ 37,745 $ 36,684 $ 1,061 2.9 % Cost of sales 30,514 26,388 4,126 15.6 % Gross profit 7,231 10,296 (3,065 ) (29.8 )% Operating expenses: Research and development 2,759 5,567 (2,808 ) (50.4 )% Sales and marketing 6,320 9,330 (3,010 ) (32.3 )% General and administrative 23,150 25,450 (2,300 ) (9.0 )% Amortization of intangible assets 1,148 1,148 — — Tradename impairment — 2,169 (2,169 ) (100.0 )% Long-lived assets impairment — 2,195 (2,195 ) (100.0 )% Total operating expenses 33,377 45,859 (12,482 ) (27.2 )% Loss from operations (26,146 ) (35,563 ) 9,417 (26.5 )% Other expenses, net Interest expense, net (687 ) (833 ) 146 (17.5 )% Other income, net — 142 (142 ) (100.0 )% Loss on extinguishment of debt — (824 ) 824 (100.0 )% Total other expenses, net (687 ) (1,515 ) 828 (54.7 )% Loss before income taxes (26,833 ) (37,078 ) 10,245 (27.6 )% Benefit from income taxes (88 ) (298 ) 210 (70.5 )% Net loss $ (26,745 ) $ (36,780 ) $ 10,035 (27.3 )% 55 Revenue Our revenue disaggregated by product category, for the years ended December 31, 2024 and 2023 was as follows (dollars in thousands): For the Year Ended December 31, 2024 2023 $ Change % Change Lab Essentials $ 28,883 $ 28,800 $ 83 0.3 % Clinical Solutions 7,097 6,738 359 5.3 % Other 1,765 1,146 619 54.0 % Total revenue $ 37,745 $ 36,684 $ 1,061 2.9 % Total revenue was $37.7 million in 2024, an increase of $1.1 million, or 2.9%, compared with $36.7 million in 2023.
These provisions include, but are not limited to: ▪ reduced obligations with respect to financial data, including presenting only two years of audited financial statements; ▪ an exemption from compliance with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act; ▪ reduced disclosure about our executive compensation arrangements in our periodic reports, proxy statements, and registration statements; and ▪ exemptions from the requirements of holding non-binding advisory votes on executive compensation or golden parachute arrangements.
These provisions include, but are not limited to: ▪ reduced obligations with respect to financial data, including presenting only two years of audited financial statements; 62 ▪ an exemption from compliance with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act; ▪ reduced disclosure about our executive compensation arrangements in our periodic reports, proxy statements, and registration statements; and ▪ exemptions from the requirements of holding non-binding advisory votes on executive compensation or golden parachute arrangements.
Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under 63 the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
The primary non-cash adjustments to net loss included $5.7 million of depreciation and amortization, $4.1 million of stock-based compensation, a $2.2 million impairment charge related to long-lived assets, a $2.2 million impairment charge related to the Teknova tradename, a $0.8 million loss on extinguishment of debt, $0.5 million in amortization of debt financing costs, and a $0.3 million provision related to our inventory reserve.
The primary non-cash adjustments to net loss included $5.7 million of depreciation and amortization, $4.1 million of stock-based compensation, a $2.2 million impairment charge related to long-lived assets, a $2.2 million impairment charge related to the Teknova tradename, a $0.8 million loss on extinguishment of debt, $0.5 million in amortization of debt financing costs, and a $0.3 million provision related to our inventory 59 reserve.
Risk Assessment Our Cybersecurity Program also includes a periodic risk assessment, which is based generally on frameworks established by the National Institute of Standards and Technology (NIST). Third-Party Risk Management We also maintain procedures designed to identify and mitigate cybersecurity threats related to our use of material third-party vendors.
Risk Assessment Our Cybersecurity Program also includes a periodic risk assessment, which is based generally on frameworks established by the National Institute of Standards and Technology (NIST). 50 Third-Party Risk Management We also maintain procedures designed to identify and mitigate cybersecurity threats related to our use of material third-party vendors .
If any 56 legal proceedings were to be determined adversely to us, or we were to enter into a settlement arrangement, we could be exposed to monetary damages or limits on our ability to operate our business, which could have an adverse effect on our business, financial condition, and operating results.
If any legal proceedings were to be determined adversely to us, or we were to enter into a settlement arrangement, we could be exposed to monetary damages or limits on our ability to operate our business, which could have an adverse effect on our business, financial condition, and operating results.
Stock-Based Compensation Stock-based compensation expense is recognized based on the fair value and is expensed on a straight-line basis over the requisite service periods of the award, which generally represents the scheduled vesting period. Forfeitures are recognized as they occur.
Stock-Based Compensation Stock-based compensation expense is recognized based on the fair value and is expensed on a straight-line basis over the requisite service periods of the award, which generally represents the scheduled vesting period. 61 Forfeitures are recognized as they occur.
We recognize revenue from the sale of manufactured products and services when control of promised goods or services is transferred to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services.
We recognize revenue from the sale of manufactured products and services when control of promised goods or services is transferred to customers in an amount that reflects the consideration we expect to be entitled to in 60 exchange for those goods or services.
The VP of IT reports directly to the Company’s Chief Executive Officer and provides periodic reporting on our Cybersecurity Program to our senior management team, our board of directors, and the audit committee of our board of directors.
The VP of IT reports directly to our Chief Executive Officer and provides periodic reporting on our Cybersecurity Program to our senior management team, our board of directors, and the audit committee of our board of directors.
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 increases on the results of our operations.
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.
The board of directors and audit committee receive periodic reports about the prevention, detection, mitigation, and remediation of cybersecurity incidents, including material security risks and information security vulnerabilities. Additionally, risks associated with the Cybersecurity Program 55 are integrated into the Company’s enterprise risk management assessment and reported to our Board as needed.
The board of directors and audit committee receive periodic reports about the prevention, detection, mitigation, and remediation of cybersecurity incidents, including material security risks and information security vulnerabilities. Additionally, risks associated with the Cybersecurity Program are integrated into our enterprise risk management assessment and reported to our Board as needed.
It em 6. [Reserved]. 58 It em 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The following discussion and analysis of Alpha Teknova, Inc.’s financial condition and results of operations should be read in conjunction with the financial statements and the notes thereto contained elsewhere in this Annual Report on Form 10-K.
It em 6. [Reserved]. 52 It em 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The following discussion and analysis of Alpha Teknova, Inc.’s financial condition and results of operations should be read in conjunction with the financial statements and the notes thereto contained elsewhere in this Annual Report on Form 10-K.
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. We manufacture our products at our Hollister, California headquarters and stock inventory of raw materials, components, and finished goods at that campus.
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. We manufacture our products at our Hollister, California headquarters and stock inventory of raw materials, components, and finished goods at that campus.
Our management conducted an assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
Our management conducted an assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
It em 2. Properties. See Item 1. "Business – Facilities" for specific information about our commercial, office, manufacturing, and warehouse space. Ite m 3. Legal Proceedings. We are not a party to any material legal proceedings at this time. From time to time, we may become involved in various legal proceedings that arise in the ordinary course of business.
It em 2. Properties. See Item 1. “Business – Facilities” for specific information about our commercial, office, manufacturing, and warehouse space. Ite m 3. Legal Proceedings. We are not a party to any material legal proceedings at this time. From time to time, we may become involved in various legal proceedings that arise in the ordinary course of business.
We also share the key results of third-party assessments with our board of directors and audit committee. Risk Management and Strategy Technical Safeguards As part of our Cybersecurity Program, the Company deploys technical safeguards that are designed to protect our information systems from cybersecurity threats, which are evaluated and improved through vulnerability assessments and cybersecurity threat intelligence.
We also share the key results of third-party assessments with our board of directors and audit committee. Risk Management and Strategy Technical Safeguards As part of our Cybersecurity Program, we deploy technical safeguards that are designed to protect our information systems from cybersecurity threats, which are evaluated and improved through vulnerability assessments and cybersecurity threat intelligence.
Information pertaining to loss contingencies, including those arising out of potential legal liabilities and related matters, are described in Item 8, "Financial Statements and Supplementary Data - Note 16. Contingencies," and incorporated by reference herein. It em 4. Mine Safety Disclosures. Not applicable. 57 PART II It em 5.
Information pertaining to loss contingencies, including those arising out of potential legal liabilities and related matters, are described in Item 8, "Financial Statements and Supplementary Data - Note 16. Contingencies,” and incorporated by reference herein. It em 4. Mine Safety Disclosures. Not applicable. 51 PART II It em 5.
As a result we recorded a $2.2 million impairment charge during the year ended December 31, 2023 related to our tradename, with no comparable 67 charges in 2022. Refer to “Notes to Financial Statements—Note 8. Intangible Assets, Net,” in our financial statements for details regarding the impairment.
As a result, we recorded a $2.2 million impairment charge during the year ended December 31, 2023 related to our tradename, with no comparable charges in 2024. Refer to “Notes to Financial Statements—Note 8. Intangible Assets, Net,” in our financial statements for details regarding the impairment.
Evaluation of Disclosure Controls and Procedures Our management, with the participation of our Chief Executive Officer (CEO) and Chief Financial Officer (CFO) (our principal executive officer and principal financial officer, respectively), evaluated the effectiveness of our disclosure controls and procedures as of December 31, 2023.
Evaluation of Disclosure Controls and Procedures Our management, with the participation of our Chief Executive Officer (CEO) and Chief Financial Officer (CFO) (our principal executive officer and principal financial officer, respectively), evaluated the effectiveness of our disclosure controls and procedures as of December 31, 2024.
Item 1C. Cybersecurity. Our board of directors and management exercise oversight over the Company’s cybersecurity program, which represents an important component of the Company’s overall approach to enterprise risk management.
Item 1C. Cybersecurity. Our board of directors and management exercise oversight over our cybersecurity program, which represents an important component of our overall approach to enterprise risk management.
See “Notes to Financial Statements—Note 2. Basis of Presentation and Summary of Significant Accounting Policies,” for a more detailed discussion of the material terms of our ATM Facility. As of December 31, 2023, our material cash requirements from known contractual obligations and commitments relate primarily to operating leases for our office, manufacturing, warehouse, and distribution facilities.
Basis of Presentation and Summary of Significant Accounting Policies,” for a more detailed discussion of the material terms of our ATM Facility. As of December 31, 2024, our material cash requirements from known contractual obligations and commitments relate primarily to operating leases for our office, manufacturing, warehouse, and distribution facilities. See “Notes to Financial Statements—Note 7.
See "Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” for more information regarding Amendment No. 5 to the Credit Agreement and the credit facility. ▪ On March 8, 2024, as a condition to the effectiveness of Amendment No. 5, we issued a warrant to MidCap to purchase up to an aggregate of 125,000 shares (the Common Warrant) of common stock 60 with an exercise price of $2.9934 per share, subject to adjustment as provided therein.
See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” for more information regarding Amendment No. 5 to the Amended and Restated Credit Agreement and the credit facility. ▪ On March 8, 2024, as a condition to the effectiveness of Amendment No. 5, we issued a warrant to MidCap to purchase up to an aggregate of 125,000 shares (the Common Warrant) of common stock with an exercise price of $2.9934 per share, subject to adjustment as provided therein.
Net cash used in investing activities was $7.7 million in 2023, which consisted of purchases of property, plant, and equipment of $7.9 million, partially offset by proceeds from the sale of certain long-lived assets of $0.2 million. Net cash used in investing activities was $28.1 million in 2022, which consisted of purchases of property, plant, and equipment.
Net cash used in investing activities was $7.7 million in 2023, which consisted of purchases of property, plant, and equipment of $7.9 million, partially offset by proceeds from the sale of certain long-lived assets of $0.2 million.
Unless the context otherwise requires, references in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” to "the Company," “Teknova,” we,” “us,” and “our” are intended to mean the business and operations of Alpha Teknova, Inc.
Unless the context otherwise requires, references in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” to “the Company,” “Teknova,” “we,” “us,” and “our” are intended to mean the business and operations of Alpha Teknova, Inc.
Based on that assessment, our management has concluded that our internal control over financial reporting was effective as of December 31, 2023.
Based on that assessment, our management has concluded that our internal control over financial reporting was effective as of December 31, 2024.
In particular, unless waived, the terms of the Amended Credit Agreement prohibit us from paying dividends, other than dividends payable in our stock, without the prior written consent of the lender.
In particular, unless waived, the terms of the Second Amended and Restated Credit Agreement prohibit us from paying dividends, other than dividends payable in our stock, without the prior written consent of the lender.
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: • attract, hire, and retain qualified personnel; 59 ▪ invest in processes and infrastructure to enable manufacturing automation and expand capacity, including the ramp up of our new, state-of-the-art manufacturing, warehouse, and distribution facilities; and ▪ build our brand and market, and sell our products and services.
While our expenses may fluctuate over the short term, we expect our expenses will increase in future periods, but at a slower rate, in connection with our ongoing activities as we: 53 • attract, hire, and retain qualified personnel; ▪ invest in processes and infrastructure to improve operating efficiency and expand capacity at our facilities, including the ramp up of our new, state-of-the-art manufacturing, warehouse, and distribution facilities; and ▪ build our brand and market, and sell our products and services.
Additionally, Amendment No 5 removed these requirements for the periods ending January 31, 2025 through December 31, 2025, instead requiring that the minimum net revenue requirement will be determined by MidCap in its reasonable discretion in consultation with our senior management subject to provisions contained therein.
Additionally, Amendment No. 5 removed those requirements for the periods ending January 31, 2025 through December 31, 2025, instead requiring that the minimum net revenue requirement would be determined by MidCap Financial Trust in its reasonable discretion in consultation with our senior management subject to provisions contained therein.
Outstanding options with an exercise price that is less than our closing stock price will be reduced to the fair market value on that date. There will be no changes to the number of shares, the vesting schedule, or the expiration date of the repriced options.
Outstanding options with an exercise price that is greater than our closing stock price on March 14, 2024 will be reduced to the fair market value on that date. There will be no changes to the number of shares, the vesting schedule, or the expiration date of the repriced options.
Financing Activities Net cash provided by financing activities primarily relates to proceeds from our Offerings, proceeds and payments related to our long-term debt, the exercise of stock options, issuance of common stock under our employee stock purchase plan, and other financing activities.
Financing Activities Net cash provided by financing activities primarily relates to proceeds from our September 2023 Offerings and July 2024 Offering, proceeds and payments related to our long-term debt, the exercise of stock options, issuance of common stock under our employee stock purchase plan, and other financing activities.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Market Information for Common Stock Our common stock is listed on the Nasdaq Global Market under the symbol “TKNO”. Holders On March 22, 2024, we had 16 holders of record of our common stock. Dividends We have not paid any dividends since our inception.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Market Information for Common Stock Our common stock is listed on the Nasdaq Global Market under the symbol “TKNO”. Holders On March 5, 2025, we had 9 holders of record of our common stock. Dividends We have not paid any dividends since our inception.
Revenue from U.S. sales was consistent year over year, representing 95.4% and 96.8% of our total revenue in 2023 and 2022, respectively. Revenue from sales to customers in markets outside of the U.S. was $1.7 million in 2023, and $1.3 million in 2022.
Revenue from U.S. sales was consistent year over year, representing 95.2% and 95.4% of our total revenue in 2024 and 2023, respectively. Revenue from sales to customers in markets outside of the U.S. was $1.8 million in 2024, and $1.7 million in 2023.
We recorded long-lived asset impairment charges of $2.2 million in 2023 and $4.2 million in 2022. Refer to “Notes to Financial Statements—Note 6. Property, Plant, and Equipment, Net,” in our financial statements for details regarding the long-lived asset impairment.
We recorded long-lived asset impairment charges of $2.2 million in 2023, with no comparable charges in 2024. Refer to “Notes to Financial Statements—Note 6. Property, Plant, and Equipment, Net,” in our financial statements for details regarding the long-lived asset impairment.
We primarily generate sales through direct channels and a small salesforce, however, some of our sales are generated through distributors. We had an operating loss of $35.6 million in 2023 compared to $49.7 million in 2022.
We primarily generate sales through direct channels and a small salesforce, however, some of our sales are generated through distributors. We had an operating loss of $26.1 million in 2024 compared to $35.6 million in 2023.
For further information regarding the impact of these economic factors on the Company, please see Item 1A., "Risk Factors" in this report, which is incorporated herein by reference.
For further information regarding the impact of these economic factors on us, please see Item 1A., “Risk Factors” in this report, which is incorporated herein by reference.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires disclosure in the rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciliation items in some categories if the items meet a quantitative threshold.
Accounting Pronouncements Not Yet Adopted In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires disclosure in the rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciliation items in some categories if the items meet a quantitative threshold.
The following table sets forth, for the periods indicated, net cash flows used in operating activities, used in investing activities and provided by financing activities (in thousands): 65 For the Year Ended December 31, 2023 2022 Net cash used in operating activities $ (18,814 ) $ (27,400 ) Net cash used in investing activities (7,737 ) (28,149 ) Net cash provided by financing activities 12,799 10,267 Net decrease in cash and cash equivalents $ (13,752 ) $ (45,282 ) Operating Activities Net cash used in operating activities consists primarily of net loss adjusted for certain non-cash items (including depreciation and amortization, bad debt expense, deferred taxes, loss on disposal of property, plant, and equipment, inventory reserve, amortization of debt issuance costs, and stock-based compensation expense), and the effect of changes in working capital and other operating activities.
The following table sets forth, for the periods indicated, net cash flows used in operating activities, used in investing activities and provided by financing activities (in thousands): For the Year Ended December 31, 2024 2023 Net cash used in operating activities $ (12,391 ) $ (18,814 ) Net cash used in investing activities (27,275 ) (7,737 ) Net cash provided by financing activities 14,890 12,799 Net decrease in cash and cash equivalents $ (24,776 ) $ (13,752 ) Operating Activities Net cash used in operating activities consists primarily of net loss adjusted for certain non-cash items (including depreciation and amortization, bad debt expense, deferred taxes, loss on disposal of property, plant, and equipment, inventory reserve, amortization of debt issuance costs, and stock-based compensation expense), and the effect of changes in working capital and other operating activities.
Excluding non-recurring charges, we had an operating loss of $29.8 million in 2023 (excluding the following non-recurring charges: $0.7 million related to the reduction in workforce, $2.2 million tradename impairment, $2.2 million long-lived asset impairment, $0.4 million write-off of ATM Facility costs, and $0.3 million loss contingency) compared to an operating loss of $28.9 million in 2022 (excluding the goodwill impairment of $16.6 million and long-lived asset impairment of $4.2 million).
Excluding non-recurring charges, we had an operating loss of $24.8 million in 2024 (excluding the following non-recurring charges: $1.3 million related to the reduction in workforce and $0.1 million loss contingency) compared to an operating loss of $29.8 million in 2023 (excluding the following non-recurring charges: $0.7 million related to the reduction in workforce, $2.2 million tradename impairment, $2.2 million long-lived asset impairment, $0.4 million write-off of ATM Facility costs, and $0.3 million loss contingency).
The main drivers of the changes in operating assets and liabilities were a $7.6 million increase in inventories and $2.1 million increase in other non-current assets, partially offset by a $1.2 million decrease in income taxes receivable, $0.6 million increase in accounts payable, and $0.4 million decrease in accounts receivable.
The main drivers of the changes in operating assets and liabilities were a $0.6 million decrease in accounts payable, an increase of $0.5 million in accounts receivable, a $0.4 million decrease in accrued liabilities, partially offset by a decrease in other non-current assets of $0.5 million and a decrease in inventories of $0.2 million.
Revenue from international sales was also consistent year over year, representing 4.6% and 3.2% of our total revenue in 2023 and 2022, respectively.
Revenue from international sales was also consistent year over year, representing 4.8% and 4.6% of our total revenue in 2024 and 2023, respectively.
Benefit from income taxes Our benefit from income taxes for the years ended December 31, 2023 and 2022 was as follows (dollars in thousands): For the Year Ended December 31, 2023 2022 $ Change % Change Benefit from income taxes $ (298 ) $ (1,923 ) $ 1,625 (84.5 )% Effective tax rate 0.8 % 3.9 % Our benefit from income taxes was $0.3 million in 2023, compared to a $1.9 million in 2022.
Benefit from income taxes Our benefit from income taxes for the years ended December 31, 2024 and 2023 was as follows (dollars in thousands): For the Year Ended December 31, 2024 2023 $ Change % Change Benefit from income taxes $ (88 ) $ (298 ) $ 210 (70.5 )% Effective tax rate 0.3 % 0.8 % Our benefit from income taxes was $0.1 million in 2024, compared to a $0.3 million in 2023.
As long as we qualify as an emerging growth company, we may take advantage of certain exemptions from various reporting requirements and other burdens that are otherwise applicable generally to public companies.
Emerging Growth Company and Smaller Reporting Company We qualify as an “emerging growth company” as defined in the JOBS Act. As long as we qualify as an emerging growth company, we may take advantage of certain exemptions from various reporting requirements and other burdens that are otherwise applicable generally to public companies.
We may take advantage of these reporting exemptions until we no longer qualify as an emerging growth company, or, with respect to adoption of certain new or revised accounting standards, until we irrevocably elect to opt out of using the extended transition period. 69 Under the JOBS Act, we will remain an emerging growth company until the earliest to occur of: ▪ the last day of the fiscal year in which we have total annual gross revenues of $1.235 billion or more; ▪ the last day of our fiscal year following the fifth anniversary of the date of the closing of our initial public offering (IPO); ▪ the date on which we have issued more than $1.0 billion in nonconvertible debt during the previous three years; and ▪ the date on which we are deemed to be a “large accelerated filer” under the Exchange Act (i.e., the first day of the fiscal year after we have (i) more than $700.0 million in outstanding common equity held by our non-affiliates, measured each year on the last business day of our most recently completed second fiscal quarter, and (ii) been public for at least 12 months).
Under the JOBS Act, we will remain an emerging growth company until the earliest to occur of: ▪ the last day of the fiscal year in which we have total annual gross revenues of $1.235 billion or more; ▪ the last day of our fiscal year following the fifth anniversary of the date of the closing of our initial public offering (IPO); ▪ the date on which we have issued more than $1.0 billion in nonconvertible debt during the previous three years; and ▪ the date on which we are deemed to be a “large accelerated filer” under the Exchange Act (i.e., the first day of the fiscal year after we have (i) more than $700.0 million in outstanding common equity held by our non-affiliates, measured each year on the last business day of our most recently completed second fiscal quarter, and (ii) been public for at least 12 months).
Net cash provided by financing activities was $12.8 million in 2023, which was primarily attributable to net proceeds from the Offerings of $22.5 million and proceeds from financed insurance premiums of $1.0 million, partially offset by repayment of long-term debt of $10.0 million, repayment of financed insurance premiums of $0.6 million, and payment of offering costs of $0.4 million related to the ATM Facility.
Net cash provided by financing activities was $12.8 million in 2023, which was primarily attributable to net proceeds from the September 2023 Offerings of $22.5 million and proceeds from financed insurance premiums of $1.0 million, partially offset by repayment of long-term debt of $10.0 million, repayment of financed insurance premiums of $0.6 million, and payment of $0.4 million related to the ATM Facility which were written off during the quarter ended September 30, 2023 as the facility was not utilized.
We generated revenue of $36.7 million in 2023, which represents a decrease of $4.7 million as compared to 2022. In 2023 and 2022, only 4.6% and 3.2%, respectively, of our revenue was generated from customers located outside of the U.S. Our sales outside of the U.S. are denominated in U.S. dollars.
We generated revenue of $37.7 million in 2024, which represents an increase of $1.1 million as compared to $36.7 million in 2023. In 2024 and 2023, only 4.8% and 4.6%, respectively, of our revenue was generated from customers located outside of the U.S. Our sales outside of the U.S. are denominated in U.S. dollars.
Based upon our evaluation of the Company’s disclosure controls and procedures, as of December 31, 2023, the CEO and the CFO concluded that the disclosure controls are effective to provide reasonable assurance that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to management, including the CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure and are effective to provide reasonable assurance that such information is recorded, processed, summarized, and reported within the time periods specified by the SEC’s rules and forms. 70 Internal Control Over Financial Reporting Management's Report on Internal Controls Over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15(d)-15(f) under the Exchange Act).
Based upon our evaluation of the Company’s disclosure controls and procedures, as of December 31, 2024, the CEO and the CFO concluded that the disclosure controls are effective to provide reasonable assurance that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to management, including the CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure and are effective to provide reasonable assurance that such information is recorded, processed, summarized, and reported within the time periods specified by the SEC’s rules and forms.
Intangible Assets, Net” in our financial statements for details regarding the goodwill impairment. We incurred a $2.2 million tradename impairment charge in 2023, with no comparable charges in 2022. Refer to the “Notes to Financial Statements—Note 8. Intangible Assets, Net” in our financial statements for details regarding the tradename impairment.
Amortization of intangible assets was consistent in 2024 and 2023, at $1.1 million. We incurred a $2.2 million tradename impairment charge in 2023, with no comparable charges in 2024. Refer to the “Notes to Financial Statements—Note 8. Intangible Assets, Net” in our financial statements for details regarding the tradename impairment.
Changes in Internal Control Over Financial Reporting Except for the remediation of material weakness described below, there were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended December 31, 2023, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Changes in Internal Control Over Financial Reporting There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended December 31, 2024, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. It em 9B. Other Information.
Net cash used in operating activities was $27.4 million in 2022, which primarily consisted of net loss of $47.5 million plus net adjustments for non-cash charges of $27.4 million, offset by net changes in operating assets and liabilities of $7.3 million.
Net cash used in operating activities was $12.4 million in 2024, which primarily consisted of net loss of $26.7 million plus net adjustments for non-cash charges of $15.2 million, offset by net changes in operating assets and liabilities of $0.9 million.
Clinical Solutions revenue was $6.7 million in 2023, a decrease of $1.7 million, or 20.2%, compared with $8.4 million in 2022. The decrease in Clinical Solutions revenue was attributable to lower average revenue per customer, partially offset by an increased number of customers.
The slight increase in Lab Essentials revenue was attributable to an increased number of customers, partially offset by lower average revenue per customer. Clinical Solutions revenue was $7.1 million in 2024, an increase of $0.4 million, or 5.3%, compared with $6.7 million in 2023.
Other (expenses) income, net Other (expenses) income, net for the years ended December 31, 2023 and 2022 was as follows (dollars in thousands): For the Year Ended December 31, 2023 2022 $ Change % Change Interest (expense) income, net $ (833 ) $ 213 $ (1,046 ) (491.1 )% Other income, net 142 55 87 158.2 % Loss on extinguishment of debt (824 ) — (824 ) (100.0 )% Total other (expenses) income, net $ (1,515 ) $ 268 $ (1,783 ) (665.3 )% 63 Total other expenses, net was $1.5 million in 2023, compared to total other income, net of $0.3 million in 2022.
Other expenses, net Other expenses, net for the years ended December 31, 2024 and 2023 was as follows (dollars in thousands): For the Year Ended December 31, 2024 2023 $ Change % Change Interest expense, net $ (687 ) $ (833 ) $ 146 (17.5 )% Other income, net — 142 (142 ) (100.0 )% Loss on extinguishment of debt — (824 ) 824 (100.0 )% Total other expenses, net $ (687 ) $ (1,515 ) $ 828 (54.7 )% 57 Total other expenses, net was $0.7 million in 2024, compared to total other expenses, net of $1.5 million in 2023.
Liquidity and Capital Resources The primary sources of financing for our operations were our (i) initial public offering, which we completed in June 2021 (IPO) and resulted in net proceeds to us of $99.1 million, after deducting underwriting discounts and commissions of $7.7 million and offering expenses of $3.6 million, and (ii) registered direct offering and concurrent private placement (collectively, the Offerings), which we completed in September 2023 and which resulted in aggregate gross proceeds of $22.915 million before deducting offering expenses of $0.4 million and the prepayment of $10.0 million owed under the Term Loan as discussed below.
Liquidity and Capital Resources 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.
See “Notes to Financial Statements—Note 17. Subsequent Events,” for a more detailed discussion of the material terms of the Common Warrant. Impact of Broader Economic Trends on Our Business We are closely monitoring economic uncertainty in the U.S. and abroad. General inflation in the U.S. has risen to levels not experienced in recent decades.
Impact of Broader Economic Trends on Our Business We are closely monitoring economic uncertainty in the U.S. and abroad. General inflation in the U.S. has risen to levels not experienced in recent decades.
We offer three primary product types: (i) pre-poured media plates for cell growth and cloning; (ii) liquid cell culture media and supplements for cellular expansion; and (iii) molecular biology reagents for sample manipulation, resuspension, and purification.
We have two primary product categories: Lab Essentials and Clinical Solutions. Our products cross all stages of development, from early research through commercialization. We offer three primary product types: (i) pre-poured media plates for cell growth and cloning; (ii) liquid cell culture media and supplements for cellular expansion; and (iii) molecular biology reagents for sample manipulation, resuspension, and purification.
General inflation, including rising prices for our raw materials and other inputs, as well as rising salaries and other expenses, negatively impact our business by increasing our cost of sales and operating expenses. In addition, the U.S. Federal Reserve has raised, and may again raise, interest rates in response to concerns about inflation.
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, negatively impact our business by increasing our cost of sales and operating expenses. In addition, during 2023 and early 2024, the U.S.
We will pay a commission of up to 3.0% of gross sales proceeds of any common stock sold under the ATM Facility. The aggregate market value of shares eligible for sale under the ATM Facility will be subject to the limitations of General Instruction I.B.6 of Form S-3, to the extent required under such instruction.
The aggregate market value of shares eligible for sale under the ATM Facility will be subject to the limitations of General Instruction I.B.6 of Form S-3, to the extent required under such instruction. See “Notes to Financial Statements—Note 2.
Investing Activities Net cash used in investing activities relates primarily to capital expenditures, partially offset by proceeds from the sale of certain long-lived assets.
Investing Activities Net cash used in investing activities relates primarily to the purchase and maturity of short-term investments as well as capital expenditures and proceeds from the sale of any long-lived assets.
Gross profit Our gross profit for the years ended December 31, 2023 and 2022 was as follows (dollars in thousands): For the Year Ended December 31, 2023 2022 $ Change % Change Cost of sales $ 26,388 $ 23,944 $ 2,444 10.2 % Gross profit 10,296 17,476 (7,180 ) (41.1 )% Gross profit % 28.1 % 42.2 % Gross profit percentage was 28.1% in 2023, and 42.2% in 2022.
Gross profit Our gross profit for the years ended December 31, 2024 and 2023 was as follows (dollars in thousands): For the Year Ended December 31, 2024 2023 $ Change % Change Cost of sales $ 30,514 $ 26,388 $ 4,126 15.6 % Gross profit 7,231 10,296 (3,065 ) (29.8 )% Gross profit % 19.2 % 28.1 % Gross profit percentage was 19.2% in 2024, and 28.1% in 2023.
These proprietary processes enable us to manufacture and deliver high-quality, custom, made-to-order products with short turnaround times and at scale, across all stages of our customers’ product development, from early research through commercialization. We have two primary product categories: Lab Essentials and Clinical Solutions. Our products cross all stages of development, from early research through commercialization.
Our Company is built around our knowledge, methods, and know-how in our proprietary manufacturing processes, which are highly adaptable and configurable. These proprietary processes enable us to manufacture and deliver high-quality, custom, made-to-order products with short turnaround times and at scale, across all stages of our customers’ product development, from early research through commercialization.
Our revenue disaggregated by geographic region for the years ended December 31, 2023 and 2022, was as follows (dollars in thousands): For the Year Ended December 31, 2023 2022 $ Change % Change United States $ 35,000 $ 40,103 $ (5,103 ) (12.7 )% International 1,684 1,317 367 27.9 % Total revenue $ 36,684 $ 41,420 $ (4,736 ) (11.4 )% Revenue from sales to customers in the United States was $35.0 million in 2023, and $40.1 million in 2022.
Our revenue disaggregated by geographic region, which is determined based on customer location, for the years ended December 31, 2024 and 2023, was as follows (dollars in thousands): For the Year Ended December 31, 2024 2023 $ Change % Change United States $ 35,919 $ 35,000 $ 919 2.6 % International 1,826 1,684 142 8.4 % Total revenue $ 37,745 $ 36,684 $ 1,061 2.9 % Revenue from sales to customers in the United States was $35.9 million in 2024, and $35.0 million in 2023.
General and administrative expenses were $25.5 million in 2023 and $28.3 million in 2022. Excluding the one-time, non-recurring charges related to the reduction in workforce of $0.7 million, the $0.4 million write off of ATM Facility costs, and $0.3 million accrual for legal claim recorded in 2023, general and administrative expenses decreased $4.3 million compared to 2022.
Excluding the one-time, non-recurring charges in 2024 of $1.4 million of which $1.3 million related to our reduction in workforce and $0.1 million increase in a loss contingency accrual and a total of $1.4 million of one-time non-recurring charges in 2023 of which $0.7 million related to our reduction in workforce, $0.4 million in charges related to our write off of at-the-market facility costs, and $0.3 million related to a loss contingency accrual, general and administrative expenses decreased $2.3 million.
We estimate that we will incur approximately $1.2 million of costs in connection with the reduction in workforce related to severance pay and other termination benefits. We expect the majority of the costs to be incurred and payments made during the first quarter of 2024.
Key Developments • On January 11, 2024, we announced a reduction in workforce that affected approximately 15% of our employees at that time. We incurred approximately $1.3 million of costs in connection with the reduction in workforce related to severance pay and other termination benefits during the first quarter of 2024.
Overview Since our founding in 1996, we have been producing critical reagents for the discovery, development, and commercialization of novel therapies, vaccines, and molecular diagnostics.
Overview Since our founding in 1996, we have been producing critical reagents for the discovery, development, and commercialization of novel therapies, vaccines, and molecular diagnostics. Our approximately 3,000 customers span the entire continuum of the life sciences market, including leading pharmaceutical and biotechnology companies, contract development and manufacturing organizations, in vitro diagnostics franchises, and academic and government research institutions.
The primary non-cash adjustments to net loss included a $16.6 million goodwill impairment charge, a $4.2 million impairment charge related to long-lived assets, $3.7 million of stock-based compensation, $3.2 million of depreciation and amortization, a $0.7 million provision related to our inventory reserve, partially offset by $1.9 million in deferred taxes.
The primary non-cash adjustments to net loss included $6.6 million of depreciation and amortization, a $4.5 million provision for inventory, $3.7 million of stock-based compensation, amortization of debt financing costs of $0.4 million, and loss on disposal of property, plant, and equipment of $0.2 million, partially offset by amortization of the discount on short-term investments of $0.3 million.
We also received proceeds of $0.1 million from the exercise of stock options and $0.3 million from issuance of common stock under our employee stock purchase plan. 66 Net cash provided by financing activities was $10.3 million in 2022, which was primarily attributable to proceeds from long-term debt of $10.1 million, partially offset by payment of debt issuance costs of $0.2 million and payment of exit fee costs of $0.1 million related to our debt refinancing.
Net cash provided by financing activities was $14.9 million in 2024, which was primarily attributable to net proceeds from the July 2024 Offering of $15.1 million, proceeds from financed insurance premiums of $0.4 million and proceeds of $0.1 million from the issuance of common stock under our employee stock purchase plan, partially offset by the repayment of financed insurance premiums of $0.7 million.
In that event, we may need to seek other sources of capital and there can be no assurances that we would be able to do so on acceptable terms. We also have an ATM Facility under which we may offer and sell, from time to time, shares of our common stock having aggregate gross proceeds of up to $50.0 million.
We also have an ATM Facility under which we may offer and sell, from time to time, shares of our common stock having aggregate gross proceeds of up to $50.0 million. We will pay a commission of up to 3.0% of gross sales proceeds of any common stock sold under the ATM Facility.
The option repricing will result in additional share-based compensation expense that will be recognized in our statements of operations in future periods; however, the amount of additional share-based compensation expense and the periods over which it will be recognized have not yet been determined. ▪ On March 8, 2024, we entered into Amendment No. 5 to the Credit Agreement which includes a waiver of the minimum net revenue covenant violations for each of the periods ending November 30, 2023 and January 31, 2024 and reduced these requirements for future periods up to and including for the twelve months ending December 31, 2024, from $42 million to $34 million.
The remaining $0.4 million related to unvested stock option awards and is being amortized on a straight-line basis over the weighted-average vesting period of those awards of approximately 2.38 years as of March 14, 2024. ▪ On March 8, 2024, we entered into Amendment No. 5 to our Amended and Restated Credit Agreement which included a waiver of the minimum net revenue covenant violations for each of the periods ending November 30, 2023 and January 31, 2024 and reduced those requirements for future periods up to and including for the twelve months ending December 31, 2024, from $42 million to $34 million.
We capitalized a portion of the interest on funds borrowed to finance certain of our capital expenditures. Capitalized interest costs were $0.9 million and $1.6 million in 2023 and 2022, respectively. Offsetting these other expenses is other income, which increased due to higher interest rates and thus income earned on short-term liquid investments.
The decrease in total other expenses, net was primarily due to the $0.8 million loss on extinguishment of debt in 2023 coupled with lower capitalized interest. We capitalized a portion of the interest on funds borrowed to finance certain of our capital expenditures. Capitalized interest costs were zero and $0.9 million in 2024 and 2023, respectively.
Our principal liquidity requirements are to fund our operations and capital expenditures. As of December 31, 2023, we have limited capital resources to fund ongoing operations. During the year ended December 31, 2023, we incurred net losses of $36.8 million.
Our principal liquidity requirements are to fund our operations and capital expenditures. During the year ended December 31, 2024, we incurred net losses of $26.7 million. In addition, as of December 31, 2024, we had an accumulated deficit of $118.5 million and $12.1 million in borrowings outstanding under our Term Loan (defined below).
The decrease in gross profit percentage was primarily driven by the decrease in revenue and the associated lower absorption of fixed manufacturing costs, and to a lesser extent increased overhead costs that were partially offset by reduced headcount. 62 Operating expenses Our operating expenses for the years ended December 31, 2023 and 2022 were as follows (dollars in thousands): For the Year Ended December 31, 2023 2022 $ Change % Change Research and development $ 5,567 $ 7,737 $ (2,170 ) (28.0 )% Sales and marketing 9,330 9,151 179 2.0 % General and administrative 25,450 28,298 (2,848 ) (10.1 )% Amortization of intangible assets 1,148 1,148 — — Goodwill impairment — 16,613 (16,613 ) (100.0 )% Tradename impairment 2,169 — 2,169 100.0 % Long-lived assets impairment 2,195 4,188 (1,993 ) (47.6 )% Total operating expenses $ 45,859 $ 67,135 $ (21,276 ) (31.7 )% Research and development expenses were $5.6 million in 2023 and $7.7 million in 2022.
Operating expenses Our operating expenses for the years ended December 31, 2024 and 2023 were as follows (dollars in thousands): For the Year Ended December 31, 2024 2023 $ Change % Change Research and development $ 2,759 $ 5,567 $ (2,808 ) (50.4 )% Sales and marketing 6,320 9,330 (3,010 ) (32.3 )% General and administrative 23,150 25,450 (2,300 ) (9.0 )% Amortization of intangible assets 1,148 1,148 — — Tradename impairment — 2,169 (2,169 ) (100.0 )% Long-lived assets impairment — 2,195 (2,195 ) (100.0 )% Total operating expenses $ 33,377 $ 45,859 $ (12,482 ) (27.2 )% Research and development expenses were $2.8 million in 2024 and $5.6 million in 2023.
The decrease was primarily driven by reduced headcount and professional fees as well as reduced supplies and equipment expenses. Sales and marketing expenses were $9.3 million in 2023 and $9.2 million in 2022. The increase was primarily driven by higher labor and benefit costs as well as stock-based compensation, partially offset by lower marketing expenses.
The decrease was primarily driven by reduced headcount and supplies expense. Sales and marketing expenses were $6.3 million in 2024 and $9.3 million in 2023. The decrease was primarily driven by reduced headcount. General and administrative expenses were $23.2 million in 2024 and $25.5 million in 2023.
We are currently evaluating the impact of this standard to determine its impact on our disclosures.
This standard is effective for annual reporting periods beginning after December 15, 2026, and requires prospective application with the option to apply it retrospectively. We are currently evaluating the impact of adopting this standard to determine its impact on our disclosures.
See "Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” for more information regarding the credit facility. ▪ On January 11, 2024, we announced a reduction in workforce that affected approximately 15% of our employees at that time.
The 54 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. See "Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” for more information regarding the Second Amended and Restated Credit Agreement and the credit facility.
In addition, as of December 31, 2023, we had an accumulated deficit of $91.8 million and borrowings outstanding under our Term Loan (defined below). As of December 31, 2023, we had $36.8 million of working capital, which included $28.5 million in cash and cash equivalents.
As of December 31, 2024, we had $31.6 million of working capital, which included $3.7 million in cash and cash equivalents and $26.7 million in s hort-term investments .
We performed an assessment to determine whether there were conditions or events that, considered individually and in the aggregate, raised substantial doubt about our ability to continue as a going concern for the twelve-month period following the date on which our financial statements are being issued.
As a result of recent business improvements, including benefits from the Second Amended and Restated Credit Agreement, and actions taken by management in the 2024 fiscal year to reduce operating costs, and raise additional capital, management believes that there is no longer substantial doubt about our ability to continue as a going concern for the twelve-month period following the date on which the accompanying audited financial statements are being issued.
The decrease was driven by reduced spending, primarily in professional fees and occupancy costs, partially offset by higher stock-based compensation expense. Amortization of intangible assets was consistent in 2023 and 2022, at $1.1 million. We incurred a $16.6 million goodwill impairment charge in 2022, with no comparable charges in 2023. Refer to the “Notes to Financial Statements—Note 8.
The decrease was driven by reduced compensation and benefits and spending, primarily on professional fees and insurance, partially offset by increased stock-based compensation expense related to the stock option repricing as well as facility costs. See “Notes to Financial Statements—Note 12. Stock-Based Compensation” for a more detailed discussion of the stock option repricing.
Lab Essentials revenue was $28.8 million in 2023, a decrease of $3.0 million, or 9.4%, compared with $31.8 million in 2022. The decrease in Lab Essentials revenue was attributable to a decreased number of customers, partially offset by higher average revenue per customer.
The increase in Clinical Solutions revenue was attributable to an increased number of customers, partially offset by lower average revenue per customer. Excluding revenue of $2.7 million from a single large order in 2023, Clinical Solutions revenue was up 76% in 2024.
Removed
Our more than 2,500 active customers span the entire continuum of the life sciences market, including leading pharmaceutical and biotechnology companies, contract development and manufacturing organizations, in vitro diagnostics franchises, and academic and government research institutions. Our Company is built around our knowledge, methods, and know-how in our proprietary manufacturing processes, which are highly adaptable and configurable.
Added
The option repricing resulted in additional share-based compensation expense of $0.9 million, of which $0.5 million related to vested stock option awards and was expensed on the repricing date.
Removed
Key Developments • On February 1, 2023, we carried out a reduction in workforce of approximately 40 positions, aimed at reducing operating expenses.
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