What changed in Alpha Teknova, Inc.'s 10-K — 2024 vs 2025
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Paragraph-level year-over-year comparison of Alpha Teknova, Inc.'s 2024 and 2025 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 2025 report.
+84 added−105 removedSource: 10-K (2026-03-02) vs 10-K (2025-03-07)
Top changes in Alpha Teknova, Inc.'s 2025 10-K
84 paragraphs added · 105 removed · 68 edited across 1 sections
- Item 1C. Cybersecurity+84 / −105 · 68 edited
Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
68 edited+16 added−37 removed52 unchanged
Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
68 edited+16 added−37 removed52 unchanged
2024 filing
2025 filing
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.
Biggest changeResults of Operations The following tables set forth our results of operations for the years ended December 31, 2025 and 2024 (dollars in thousands): For the Year Ended December 31, 2025 2024 $ Change % Change Revenue $ 40,520 $ 37,745 $ 2,775 7.4 % Cost of sales 27,079 30,514 (3,435 ) (11.3 )% Gross profit 13,441 7,231 6,210 85.9 % Operating expenses: Research and development 2,197 2,759 (562 ) (20.4 )% Sales and marketing 6,754 6,320 434 6.9 % General and administrative 20,318 23,150 (2,832 ) (12.2 )% Amortization of intangible assets 1,148 1,148 — — Total operating expenses 30,417 33,377 (2,960 ) (8.9 )% Loss from operations (16,976 ) (26,146 ) 9,170 (35.1 )% Other expenses, net Interest expense, net (710 ) (687 ) (23 ) 3.3 % Other adjustment to loan exit fee 485 — 485 100.0 % Total other expenses, net (225 ) (687 ) 462 (67.2 )% Loss before income taxes (17,201 ) (26,833 ) 9,632 (35.9 )% Provision for (benefit from) income taxes 58 (88 ) 146 (165.9 )% Net loss $ (17,259 ) $ (26,745 ) $ 9,486 (35.5 )% 54 Revenue Our revenue disaggregated by product category, for the years ended December 31, 2025 and 2024 was as follows (dollars in thousands): For the Year Ended December 31, 2025 2024 $ Change % Change Lab Essentials $ 31,044 $ 28,883 $ 2,161 7.5 % Clinical Solutions 7,650 7,097 553 7.8 % Other 1,826 1,765 61 3.5 % Total revenue $ 40,520 $ 37,745 $ 2,775 7.4 % Total revenue was $40.5 million in 2025, an increase of $2.8 million, or 7.4%, compared with $37.7 million in 2024.
On March 3, 2025, we entered into the Second Amended and Restated Credit Agreement with MidCap Financial (Midcap) Trust which provides for loan commitments in an aggregate amount of up to $28.245 million consisting of a $23.245 million senior secured term loan (Amended Term Loan) and a $5.0 million working capital facility (Amended Revolver).
On March 3, 2025, we entered into the Second Amended and Restated Credit Agreement with MidCap Financial (Midcap) Trust which provides for loan commitments in an aggregate amount of up to $28.245 million consisting of a $23.245 million senior secured term loan (Term Loan) and a $5.0 million working capital facility (Revolver).
The Amended Term Loan consists of the $12.135 million balance outstanding under the previous term loan, plus an additional $1.110 million related to the exit fee that would otherwise have been due upon closing of the Second and Amended Restated Term Loan Credit Agreement, as well as an additional tranche of $10.0 million that may become available for use in an acquisition, with MidCap’s consent.
The Term Loan consists of the $12.135 million balance outstanding under the previous term loan, plus an additional $1.110 million related to the exit fee that would otherwise have been due upon closing of the Second Amended and Restated Term Loan Credit Agreement, as well as an additional tranche of $10.0 million that may become available for use in an acquisition, with MidCap’s consent.
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.
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.
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.
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 microbial culture media and supplements for cellular expansion; and (iii) molecular biology reagents for sample manipulation, resuspension, and purification.
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.
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.
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.
We also share the key results of third-party assessments with our board of directors and audit committee. Risk Management and Strategy Technical Safeguards 49 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.
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 .
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 .
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.
The Second Amended and Restated Credit Agreement includes minimum net revenue requirements that are measured on a trailing twelve-month basis and a minimum cash requirement. 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.
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.
We may take advantage of these reporting exemptions until we no 61 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.
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.
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.
The simplified method is based on the vesting period and the contractual term for each grant or for each vesting tranche for awards with graded vesting. The midpoint of the vesting date and the maximum contractual expiration date are used to determine the expected term under this method. ▪ Dividend yield .
The simplified method is based on the vesting period and the contractual term for each grant or for each vesting tranche for awards with graded vesting. The midpoint of the vesting date and the maximum contractual expiration date are used to determine the expected term under this method. 60 ▪ Dividend yield .
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.
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.
For information regarding cybersecurity risks that may materially affect our Company, see the risk factor titled “Our internal computer systems, or those of our suppliers, customers, or contractors, have been and may in the future be subject to cyberattacks or security breaches, which could result in a material disruption of our business or otherwise adversely affect our business, financial condition, results of operations, cash flows, and prospects.” under “Risk Factors” in Part I, Item 1A. to this Annual Report on Form 10-K.
For information regarding cybersecurity risks that may materially affect our Company, see the risk factor titled “Our internal computer systems, or those of our suppliers, customers, or contract ors, have been and may in the future be subject to cyberattacks or security breaches, which could result in a material disruption of our business or otherwise adversely affect our business, financial condition, results of operations, cash flows, and prospects.” under “Risk Factors” in Part I, Item 1A. to this Annual Report on Form 10-K.
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.
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, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. It em 9B. Other Information.
The Second Amended and Restated Credit Agreement includes minimum net revenue requirements that are measured on a trailing twelve-month basis and a minimum cash requirement throughout the term of the agreement. For example, our minimum net revenue requirement for the twelve months ending December 31, 2025, is $39.0 million.
The 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 throughout the term of the agreement. For example, our minimum net revenue requirement for the twelve months ending December 31, 2025, was $39.0 million.
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.
Our management conducted an assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
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.
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 more than 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.
Accordingly, our tax provision contemplates tax rates currently in effect to determine our current tax provision as well as enacted tax rates expected to apply to taxable income in the fiscal years in which those temporary differences are expected to be recovered or settled to determine our deferred tax provision.
Accordingly, our tax provision contemplates tax rates currently in effect to determine our current tax provision as well as enacted tax rates expected to apply to taxable income in the fiscal years in which those temporary differences are expected to be realized or settled to determine our deferred tax provision.
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.
Information pertaining to loss contingencies, 50 including those arising out of potential legal liabilities and related matters, are described in Item 8, "Financial Statements and Supplementary Data - Note 15. Contingencies,” and incorporated by reference herein. It em 4. Mine Safety Disclosures. Not applicable. 51 PART II It em 5.
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.
Investing Activities Net cash provided by (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.
We base our estimates on historical experience and on other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.
We evaluate our estimates on an ongoing basis. We base our estimates on historical experience and on other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.
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.
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, 2025.
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.
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 of the Term Loan, and (ii) private placement completed in July 2024 (the July 2024 Offering), which resulted in aggregate gross proceeds of $15.4 million before deducting offering expenses of $0.2 million.
Based on that assessment, our management has concluded that our internal control over financial reporting was effective as of December 31, 2024.
Based on that assessment, our management has concluded that our internal control over financial reporting was effective as of December 31, 2025.
Income Taxes The asset and liability method is used in accounting for deferred income taxes. Under this method, deferred income taxes are provided for differences between the carrying amounts of assets and liabilities for financial reporting and tax purposes using the enacted tax rates and laws that will be in effect when the differences are expected to reverse.
Under this method, deferred income taxes are provided for differences between the carrying amounts of assets and liabilities for financial reporting and tax purposes using the enacted tax rates and laws that will be in effect when the differences are expected to reverse.
The July 2024 Offering closed on July 12, 2024. ▪ On March 3, 2025, we entered into the Second Amended and Restated Credit Agreement with MidCap Financial Trust which provides for loan commitments in an aggregate amount of up to $28.245 million consisting of a $23.245 million senior secured term loan and a $5.0 million working capital facility.
Key Developments • On March 3, 2025, we entered into the Second Amended and Restated Credit Agreement with MidCap Financial Trust which provides for loan commitments in an aggregate amount of up to $28.245 million consisting of a $23.245 million senior secured term loan and a $5.0 million working capital facility.
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.
Revenue from U.S. sales was consistent year over year, representing 94.4% and 95.2% of our total revenue in 2025 and 2024, respectively. Revenue from sales to customers in markets outside of the U.S. was $2.3 million in 2025, and $1.8 million in 2024.
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.
We generated revenue of $40.5 million in 2025, which represents an increase of $2.8 million as compared to $37.7 million in 2024. In 2025 and 2024, only 5.6% and 4.8%, 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.
As of the date of this Annual Report on Form 10-K, we are not aware of any risks from cybersecurity threats that have materially affected the Company, including our business strategy, results of operations, or financial condition.
As of the date of this Annual Report on Form 10-K, we are not aware of any risks from cybersecurity threats, including as a result of any cybersecurity incidents, that have materially affected or are reasonably likely to materially affect the Company, including our business strategy, results of operations, or financial condition.
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.
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 $17.0 million in 2025 compared to $26.1 million in 2024.
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.
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 February 27, 2026, we had 8 holders of record of our common stock. Dividends We have not paid any dividends since our inception.
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.
While the rate of inflation moderated in 2024, general inflation, including rising prices for our raw materials and other inputs, tariffs, as well as rising salaries and other expenses, can negatively impact our business by increasing our cost of sales and operating expenses.
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.
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.
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.
Clinical Solutions revenue was $7.7 million in 2025, an increase of $0.6 million, or 7.8%, compared with $7.1 million in 2024. The increase in Clinical Solutions revenue was attributable to an increased number of customers, partially offset by lower average revenue per customer.
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 continue to closely monitor economic uncertainty in the U.S. and abroad. General inflation in the U.S. rose in recent years to levels not experienced in recent decades.
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.
Based upon our evaluation of the Company’s disclosure controls and procedures, as of December 31, 2025, 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. 62 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).
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).
Our principal liquidity requirements are to fund our operations and capital expenditures. During the year ended December 31, 2025, we incurred net losses of $17.3 million. In addition, as of December 31, 2025, we had an accumulated deficit of $135.8 million and $13.2 million in borrowings outstanding under our Term Loan (defined below).
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.
Leases,” for a discussion of our lease obligations reflected on our balance sheet. 57 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, 2025 2024 Net cash used in operating activities $ (8,646 ) $ (12,391 ) Net cash provided by (used in) investing activities 10,699 (27,275 ) Net cash provided by financing activities 151 14,890 Net increase (decrease) in cash and cash equivalents $ 2,204 $ (24,776 ) 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.
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.
Inflation, together with uncertainty regarding future interest rate changes, and broader macroeconomic uncertainty, may cause our customers to reduce, delay, or cancel orders for our goods and services, thereby causing a decrease in or change in the timing of sales of our products and services.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and contingencies as of the date of the financial statements and reported amounts of revenues and expenses during the reporting periods. We evaluate our estimates on an ongoing basis.
Critical Accounting Policies and Estimates Our financial statements have been prepared in accordance with GAAP. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and contingencies as of the date of the financial statements and reported amounts of revenues and expenses during the reporting periods.
The decrease in our benefit from income taxes was attributable to operating losses not expected to produce a benefit .
The change from benefit from income taxes to provision for income taxes was attributable to operating losses not expected to produce a benefit .
Net cash used in operating activities was $18.8 million in 2023, which primarily consisted of net loss of $36.8 million plus net adjustments for non-cash charges of $15.7 million and net changes in operating assets and liabilities of $2.2 million.
Net cash used in operating activities was $8.6 million in 2025, which primarily consisted of net loss of $17.3 million plus net adjustments for non-cash charges of $11.3 million, offset by net changes in operating assets and liabilities of $2.7 million.
Indefinite lived intangible assets are also subject to an impairment test at least annually, as of October 1, or more frequently if events or circumstances indicate that it is more likely than not that the asset is impaired.
Significant judgment is required to estimate the amount and timing of future cash flows and the relative risk of achieving those cash flows. 59 Indefinite lived intangible assets are also subject to an impairment test at least annually, as of October 1, or more frequently if events or circumstances indicate that it is more likely than not that the asset is impaired.
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.
Our revenue disaggregated by geographic region, which is determined based on customer location, for the years ended December 31, 2025 and 2024, was as follows (dollars in thousands): For the Year Ended December 31, 2025 2024 $ Change % Change United States $ 38,249 $ 35,919 $ 2,330 6.5 % International 2,271 1,826 445 24.4 % Total revenue $ 40,520 $ 37,745 $ 2,775 7.4 % Revenue from sales to customers in the U.S. was $38.2 million in 2025, and $35.9 million in 2024.
We are currently evaluating the impact of this standard to determine its impact on our disclosures. In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40) , which requires disaggregation of specific expense categories in the notes to the financial statements and a qualitative description of the remaining expense amounts not separately disaggregated.
Accounting Pronouncements Not Yet Adopted In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40) , which requires disaggregation of specific expense categories in the notes to the financial statements and a qualitative description of the remaining expense amounts not separately disaggregated.
The main drivers of the changes in operating assets and liabilities were a $1.9 million increase in accrued liabilities, a $0.4 million decrease in other non-current assets, a $0.3 million decrease in inventories, and a $0.3 million decrease in accounts receivable, partially offset by a $0.8 million decrease in accounts payable.
The main drivers of the changes in operating assets and liabilities were a $2.4 million increase in inventories, a $0.6 million increase in prepaid expenses and other current assets, and a $0.4 million increase in accounts receivable, partially offset by a $0.5 million increase in accounts payable.
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.
The VP of IT has served in various roles in information technology and information security, along with other members of the IT department. 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.
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.
As of December 31, 2025, 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.
If the fair value of the asset is less than the carrying amount, an impairment loss would be recognized in an amount equal to the difference between the carrying amount and the fair value. We determined that as of December 31, 2023, the fair value of our indefinite lived intangible assets was less than the carrying amount.
If the fair value of the asset is less than the carrying amount, an impairment loss would be recognized in an amount equal to the difference between the carrying amount and the fair value.
Net cash used in investing activities was $27.3 million in 2024, which consisted of purchases of short-term investments of $30.3 million and purchases of property, plant, and equipment of $1.1 million, partially offset by maturities of short-term investments of $4.0 million and proceeds from the sale of certain long-lived assets of $0.1 million.
Net cash used in investing activities was $27.3 million in 2024, which consisted of purchases of short-term investments of $30.3 million and purchases of property, plant, and equipment of $1.1 million, partially offset by maturities of short-term investments of $4.0 million and proceeds from the sale of certain long-lived assets of $0.1 million. 58 Financing Activities Net cash provided by financing activities primarily relates to proceeds from our 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.
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.
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: • 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 warehouse and distribution facility; 53 ▪ build our brand awareness and market presence through targeted marketing initiatives, strategic partnerships, and expanded sales efforts; and ▪ increase investment in selling and marketing activities to drive customer acquisition, strengthen channel relationships, and support revenue growth across existing and new markets.
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.
Excluding the non-recurring charges of $0.5 million in 2025 related to non-recurring transaction costs and $1.4 million in 2024 of which $1.3 million related to the reduction in workforce and $0.1 million loss contingency, general and administrative expenses decreased $2.1 million.
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.
The decrease was driven primarily by facility costs, insurance, freight, depreciation, and professional fees as well as lower stock-based compensation expense due to one-time costs incurred in connection with the repricing that occurred in early 2024. See “Notes to Financial Statements—Note 12. Stock-Based Compensation” for a more detailed discussion of the stock option repricing.
The minimum cash requirement is $8.0 million, which includes cash and cash equivalents as well as short-term investments in U.S. Treasuries. See “Notes to Financial Statements—Note 17.
The minimum cash requirement is $8.0 million, which includes cash and cash equivalents as well as short-term investments in U.S. Treasuries. We were in compliance with our financial covenants under the terms of the Second Amended and Restated Credit Agreement as of December 31, 2025. See “Notes to Financial Statements—Note 10.
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.
Gross profit Our gross profit for the years ended December 31, 2025 and 2024 was as follows (dollars in thousands): For the Year Ended December 31, 2025 2024 $ Change % Change Cost of sales $ 27,079 $ 30,514 $ (3,435 ) (11.3 )% Gross profit 13,441 7,231 6,210 85.9 % Gross profit % 33.2 % 19.2 % Gross profit percentage was 33.2% in 2025, and 19.2% in 2024.
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.
Operating expenses Our operating expenses for the years ended December 31, 2025 and 2024 were as follows (dollars in thousands): For the Year Ended December 31, 2025 2024 $ Change % Change Research and development $ 2,197 $ 2,759 $ (562 ) (20.4 )% Sales and marketing 6,754 6,320 434 6.9 % General and administrative 20,318 23,150 (2,832 ) (12.2 )% Amortization of intangible assets 1,148 1,148 — — Total operating expenses $ 30,417 $ 33,377 $ (2,960 ) (8.9 )% Research and development expenses were $2.2 million in 2025 and $2.8 million in 2024.
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.
Revenue from international sales was also consistent year over year, representing 5.6% and 4.8% of our total revenue in 2025 and 2024, respectively. Revenue from sales to customers in markets outside of the U.S. was primarily derived from the United Kingdom, Canada, and Singapore in both 2025 and 2024.
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 .
As of December 31, 2025, we had $27.0 million of working capital, which included $5.9 million in cash and cash equivalents and $15.4 million in short-term investments.
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.
Lab Essentials revenue was $31.0 million in 2025, an increase of $2.2 million, or 7.5%, compared with $28.9 million in 2024. The increase in Lab Essentials revenue was attributable to an increased number of customers, partially offset by lower average revenue per customer.
Assumptions and estimates about future values and remaining useful lives are complex and often subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors such as changes in our business strategy and our internal forecasts.
They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors such as changes in our business strategy and our internal forecasts. Income Taxes The asset and liability method is used in accounting for deferred income taxes.
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.
The primary non-cash adjustments to net loss included $6.3 million of depreciation and amortization, $3.4 million of stock-based compensation, a $2.1 million provision for inventory, and amortization of debt financing costs of $0.2 million, partially offset by amortization of the discount on short-term investments of $0.6 million, and an adjustment to the loan exit fee of $0.5 million.
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 provided by investing activities was $10.7 million in 2025, which consisted of maturities of short-term investments of $29.0 million, partially offset by purchases of short-term investments of $17.2 million and purchases of property, plant, and equipment of $1.1 million.
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.
Other expenses, net Other expenses, net for the years ended December 31, 2025 and 2024 were as follows (dollars in thousands): For the Year Ended December 31, 2025 2024 $ Change % Change Interest expense, net $ (710 ) $ (687 ) $ (23 ) 3.3 % Other adjustment to loan exit fee 485 — 485 100.0 % Total other expenses, net $ (225 ) $ (687 ) $ 462 (67.2 )% Total other expenses, net was $0.2 million in 2025, compared to total other expenses, net of $0.7 million in 2024.
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.
The decrease in total other expense, net was primarily attributable to a $0.5 million adjustment recognized on the exit fee concurrent with the refinancing of our credit agreement in early 2025 coupled with lower interest income, largely offset by lower interest expense. 56 Provision for (benefit from) income taxes Our provision for (benefit from) income taxes for the years ended December 31, 2025 and 2024 was as follows (dollars in thousands): For the Year Ended December 31, 2025 2024 $ Change % Change Provision for (benefit from) income taxes $ 58 $ (88 ) $ 146 (165.9 )% Effective tax rate (0.3 )% 0.3 % Our provision for income taxes was $0.1 million in 2025, compared to a benefit of $0.1 million in 2024.
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.
Net cash provided by financing activities was $0.2 million in 2025, which was primarily attributable to proceeds from long-term debt of $1.1 million, proceeds from financed insurance premiums of $0.3 million, proceeds of $0.1 million from the issuance of common stock under our employee stock purchase plan, and $0.1 million of proceeds from the exercise of stock options, largely offset by the payment of exit fee costs of $1.1 million, repayment of financed insurance premiums of $0.3 million, and payment of debt issuance costs of $0.1 million.
The decrease in gross profit percentage was primarily driven by $2.8 million of non-recurring and non-cash charges related to the disposal of expired inventory and write down of excess inventory created in the second half of 2022 when we increased production in anticipation of persistent high demand.
The increase was primarily driven by $2.8 million of non-recurring and non-cash charges during 2024 related to the disposal of expired inventory and write 55 down of excess inventory. Excluding those non-recurring and non-cash charges, gross profit would have been $10.0 million and gross profit percentage would have been 26.5%, respectively, in the year ended December 31, 2024.
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.
The decrease was primarily driven by lower salaries and wages resulting from the reduction in workforce that was completed in early 2024. Sales and marketing expenses were $6.8 million in 2025 and $6.3 million in 2024.
Removed
The VP of IT has served in various roles in information technology and information security, along with other members of the IT department, and holds relevant and applicable certifications.
Added
We cannot predict the impact of future inflation and interest rate changes on the results of our operations. Furthermore, changes to tariff and related international trade policy that began in 2025 has created uncertainty about the broader economy and our business.
Removed
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).
Added
The improvement in gross profit percentage from 26.5% to 33.2% was primarily driven by higher revenue and manufacturing efficiency gains.
Removed
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.
Added
The increase was primarily driven by higher marketing costs during 2025, partially offset by lower salaries and wages resulting from the reduction in workforce that occurred in early 2024. General and administrative expenses were $20.3 million in 2025 and $23.2 million in 2024.
Removed
Total annual cost savings from this reduction in workforce are estimated at $6.4 million. ▪ On January 16, 2024, our board of directors approved a stock option repricing effective on March 14, 2024.
Added
Amortization of intangible assets was consistent in 2025 and 2024, at $1.1 million.
Removed
The option repricing applies to outstanding options to purchase shares of our common stock as of the repricing date provided that the holder remains employed by us or continues to serve as a member of the board of directors through at least September 14, 2025.
Added
Long-Term Debt, Net” for a more detailed discussion of the material terms of our Second Amended and Restated Credit Agreement. On July 10, 2025, we filed a “shelf” registration statement on Form S-3 (Reg. No. 333-288613) with the SEC, which was declared effective on July 16, 2025.
Removed
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.
Added
This shelf registration statement, which includes a base prospectus, allows us at any time to offer any combination of securities described in the prospectus in one or more offerings for our own account in an aggregate amount up to $225 million.
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