エドガーで原本を確認する
Delaware |
001-36156 |
20-5455398 |
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(State or other jurisdiction of
incorporation)
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Commission File Number |
(IRS Employer Identification
No.)
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6000 Shoreline Court, Suite 300, South San Francisco, California |
94080 |
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(Address of principal executive offices) |
(Zip Code) |
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |||||
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
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| Common Stock, par value $0.001 per share | VCYT |
The Nasdaq Stock Market LLC |
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| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934. | ||
Emerging growth company ☐ | ||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | ||
| Exhibit No. | Description | |||||||
| 99.1 | ||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
Dated: |
August 6, 2024 | ||||||||||
VERACYTE, INC. |
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By: |
/s/ Rebecca Chambers | ||||||||||
Name: |
Rebecca Chambers | ||||||||||
Title: |
Chief Financial Officer | ||||||||||
| Principal Financial Officer | |||||||||||
| VERACYTE, INC. | |||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| (In thousands, except share and per share amounts) | |||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Testing revenue | $ | 106,970 | $ | 81,749 | $ | 197,273 | $ | 154,145 | |||||||||||||||
| Product revenue | 3,906 | 4,011 | 7,443 | 7,903 | |||||||||||||||||||
| Biopharmaceutical and other revenue | 3,552 | 4,562 | 6,556 | 10,696 | |||||||||||||||||||
| Total revenue | 114,428 | 90,322 | 211,272 | 172,744 | |||||||||||||||||||
| Cost of revenue: (1) | |||||||||||||||||||||||
| Cost of testing revenue | 27,920 | 23,333 | 53,899 | 42,981 | |||||||||||||||||||
| Cost of product revenue | 1,874 | 2,315 | 4,518 | 4,477 | |||||||||||||||||||
| Cost of biopharmaceutical and other revenue | 3,812 | 4,040 | 6,650 | 8,459 | |||||||||||||||||||
| Intangible asset amortization - cost of revenue | 2,909 | 4,814 | 5,824 | 9,618 | |||||||||||||||||||
| Total cost of revenue | 36,515 | 34,502 | 70,891 | 65,535 | |||||||||||||||||||
| Gross profit | 77,913 | 55,820 | 140,381 | 107,209 | |||||||||||||||||||
| Operating expenses: (1) | |||||||||||||||||||||||
| Research and development | 16,465 | 12,541 | 32,430 | 25,310 | |||||||||||||||||||
| Selling and marketing | 24,216 | 25,756 | 47,998 | 51,886 | |||||||||||||||||||
| General and administrative | 31,745 | 25,047 | 57,955 | 46,100 | |||||||||||||||||||
| Impairment of long-lived assets | — | — | 429 | 1,410 | |||||||||||||||||||
| Intangible asset amortization - operating expenses | 881 | 527 | 1,619 | 1,052 | |||||||||||||||||||
| Total operating expenses | 73,307 | 63,871 | 140,431 | 125,758 | |||||||||||||||||||
| Income (loss) from operations | 4,606 | (8,051) | (50) | (18,549) | |||||||||||||||||||
| Other income (loss), net | 2,755 | (226) | 5,503 | 2,181 | |||||||||||||||||||
| Income (loss) before income taxes | 7,361 | (8,277) | 5,453 | (16,368) | |||||||||||||||||||
| Income tax provision | 1,627 | 125 | 1,583 | 125 | |||||||||||||||||||
| Net income (loss) | $ | 5,734 | $ | (8,402) | $ | 3,870 | $ | (16,493) | |||||||||||||||
| Earnings (loss) per share: | |||||||||||||||||||||||
| Basic | $ | 0.07 | $ | (0.12) | $ | 0.05 | $ | (0.23) | |||||||||||||||
| Diluted | $ | 0.07 | $ | (0.12) | $ | 0.05 | $ | (0.23) | |||||||||||||||
| Shares used to compute earnings (loss) per common share: | |||||||||||||||||||||||
| Basic | 76,538,325 | 72,478,662 | 75,649,057 | 72,327,897 | |||||||||||||||||||
| Diluted | 77,163,149 | 72,478,662 | 76,600,079 | 72,327,897 | |||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Cost of revenue | $ | 604 | $ | 497 | $ | 1,091 | $ | 884 | |||||||||||||||
| Research and development | 1,895 | 1,439 | 3,658 | 2,696 | |||||||||||||||||||
| Selling and marketing | 2,142 | 2,494 | 3,235 | 4,606 | |||||||||||||||||||
| General and administrative | 5,213 | 6,019 | 9,889 | 10,364 | |||||||||||||||||||
| Total stock-based compensation expense | $ | 9,854 | $ | 10,449 | $ | 17,873 | $ | 18,550 | |||||||||||||||
| VERACYTE, INC. | |||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Net income (loss) | $ | 5,734 | $ | (8,402) | $ | 3,870 | $ | (16,493) | |||||||||||||||
| Other comprehensive income (loss): | |||||||||||||||||||||||
| Change in currency translation adjustments | (1,703) | (917) | (6,592) | 3,563 | |||||||||||||||||||
| Net comprehensive income (loss) | $ | 4,031 | $ | (9,319) | $ | (2,722) | $ | (12,930) | |||||||||||||||
| VERACYTE, INC. | |||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
| (In thousands) | |||||||||||
| June 30, | December 31, | ||||||||||
| 2024 | 2023 | ||||||||||
| (Unaudited) | (See Note 1) | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 235,915 | $ | 216,454 | |||||||
| Accounts receivable | 50,304 | 40,378 | |||||||||
| Supplies and inventory | 19,258 | 16,128 | |||||||||
| Prepaid expenses and other current assets | 15,629 | 12,661 | |||||||||
Total current assets |
321,106 | 285,621 | |||||||||
| Property, plant and equipment, net | 22,291 | 20,584 | |||||||||
| Right-of-use assets, operating leases | 18,116 | 10,277 | |||||||||
| Intangible assets, net | 112,532 | 88,593 | |||||||||
| Goodwill | 752,107 | 702,984 | |||||||||
| Restricted cash | 1,088 | 876 | |||||||||
| Other assets | 7,087 | 5,971 | |||||||||
| Total assets | $ | 1,234,327 | $ | 1,114,906 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 12,084 | $ | 12,943 | |||||||
| Accrued liabilities | 43,455 | 38,427 | |||||||||
| Current portion of deferred revenue | 2,195 | 2,008 | |||||||||
| Current portion of acquisition-related contingent consideration | 7,348 | 2,657 | |||||||||
| Current portion of operating lease liabilities | 7,185 | 5,105 | |||||||||
| Current portion of other liabilities | 72 | 101 | |||||||||
Total current liabilities |
72,339 | 61,241 | |||||||||
| Deferred tax liabilities | 1,483 | 734 | |||||||||
| Acquisition-related contingent consideration, net of current portion | 13,889 | 518 | |||||||||
| Operating lease liabilities, net of current portion | 13,553 | 7,525 | |||||||||
| Other liabilities | 540 | 786 | |||||||||
Total liabilities |
101,804 | 70,804 | |||||||||
| Total stockholders’ equity | 1,132,523 | 1,044,102 | |||||||||
| Total liabilities and stockholders’ equity | $ | 1,234,327 | $ | 1,114,906 | |||||||
| 1. The condensed consolidated balance sheet at December 31, 2023 has been derived from the audited financial statements at that date included in the Company's Form 10-K filed with the Securities and Exchange Commission dated February 29, 2024. | |||||||||||
| VERACYTE, INC. | |||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
| (Unaudited) | |||||||||||
| (In thousands) | |||||||||||
| Six Months Ended June 30, | |||||||||||
| 2024 | 2023 | ||||||||||
| Operating activities | |||||||||||
| Net income (loss) | $ | 3,870 | $ | (16,493) | |||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 11,328 | 13,529 | |||||||||
| Loss on disposal of property, plant and equipment | 68 | 136 | |||||||||
| Stock-based compensation | 17,873 | 18,366 | |||||||||
| Deferred income taxes | 23 | 125 | |||||||||
| Noncash lease expense | 2,287 | 1,977 | |||||||||
| Revaluation of acquisition-related contingent consideration | 863 | (344) | |||||||||
| Effect of foreign currency on operations | 896 | (167) | |||||||||
| Impairment loss | 429 | 1,410 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | (10,086) | 1,789 | |||||||||
| Supplies and inventory | (3,266) | 2,782 | |||||||||
| Prepaid expenses and other current assets | (2,183) | (2,530) | |||||||||
| Other assets | (1,213) | (1,048) | |||||||||
| Operating lease liabilities | (2,446) | (2,091) | |||||||||
| Accounts payable | (1,706) | 792 | |||||||||
| Accrued liabilities and deferred revenue | 3,872 | (3,734) | |||||||||
| Net cash provided by operating activities | 20,609 | 14,499 | |||||||||
| Investing activities | |||||||||||
| Acquisition of C2i, net of cash acquired | 5,012 | — | |||||||||
| Purchase of short-term investments | — | (19,700) | |||||||||
| Proceeds from sale of short-term investments | — | 39,773 | |||||||||
| Proceeds from maturity of short-term investments | — | 5,000 | |||||||||
| Purchases of property, plant and equipment | (4,904) | (4,662) | |||||||||
| Net cash provided by investing activities | 108 | 20,411 | |||||||||
| Financing activities | |||||||||||
| Payment of taxes on vested restricted stock units | (5,135) | (3,168) | |||||||||
| Proceeds from the exercise of common stock options and employee stock purchases | 4,260 | 5,250 | |||||||||
| Net cash (used in) provided by financing activities | (875) | 2,082 | |||||||||
| Increase in cash, cash equivalents and restricted cash | 19,842 | 36,992 | |||||||||
| Effect of foreign currency on cash, cash equivalents and restricted cash | (169) | 43 | |||||||||
| Net increase in cash, cash equivalents and restricted cash | 19,673 | 37,035 | |||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 217,330 | 154,996 | |||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 237,003 | $ | 192,031 | |||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||||||||||
| (Unaudited) | |||||||||||
| (In thousands) | |||||||||||
| June 30, | December 31, | ||||||||||
| 2024 | 2023 | ||||||||||
| Cash and cash equivalents | $ | 235,915 | $ | 216,454 | |||||||
| Restricted cash | 1,088 | 876 | |||||||||
| Total cash, cash equivalents and restricted cash | $ | 237,003 | $ | 217,330 | |||||||
| VERACYTE, INC. | |||||||||||||||||||||||
| RECONCILIATION OF U.S. GAAP to NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Reconciliation of Non-GAAP Gross Margin: | |||||||||||||||||||||||
| GAAP Gross Profit | $ | 77,913 | $ | 55,820 | $ | 140,381 | $ | 107,209 | |||||||||||||||
| GAAP Gross Margin | 68 | % | 62 | % | 66 | % | 62 | % | |||||||||||||||
| Amortization of intangible assets | 2,909 | 4,814 | 5,824 | 9,618 | |||||||||||||||||||
| Stock-based compensation expense | 604 | 497 | 1,091 | 884 | |||||||||||||||||||
| Acquisition related expenses (1) | — | — | 60 | 74 | |||||||||||||||||||
| Other adjustments (2) | — | — | 6 | — | |||||||||||||||||||
| Non-GAAP Gross Profit | $ | 81,426 | $ | 61,131 | $ | 147,362 | $ | 117,785 | |||||||||||||||
| Non-GAAP Gross Margin | 71 | % | 68 | % | 70 | % | 68 | % | |||||||||||||||
| Reconciliation of Non-GAAP Operating Expenses: | |||||||||||||||||||||||
| GAAP research and development | $ | 16,465 | $ | 12,541 | $ | 32,430 | $ | 25,310 | |||||||||||||||
| Stock-based compensation expense | (1,895) | (1,439) | (3,658) | (2,696) | |||||||||||||||||||
| Acquisition related expenses (1) | 23 | — | (397) | — | |||||||||||||||||||
| Other adjustments (2) | 2 | — | (276) | — | |||||||||||||||||||
| Non-GAAP research and development | $ | 14,595 | $ | 11,102 | $ | 28,099 | $ | 22,614 | |||||||||||||||
| GAAP sales and marketing | $ | 24,216 | $ | 25,756 | $ | 47,998 | $ | 51,886 | |||||||||||||||
| Stock-based compensation expense | (2,142) | (2,494) | (3,235) | (4,606) | |||||||||||||||||||
| Acquisition related expenses (1) | — | (567) | (124) | (1,158) | |||||||||||||||||||
| Other adjustments (2) | (194) | — | (1,094) | — | |||||||||||||||||||
| Non-GAAP sales and marketing | $ | 21,880 | $ | 22,695 | $ | 43,545 | $ | 46,122 | |||||||||||||||
| GAAP general and administrative | $ | 31,745 | $ | 25,047 | $ | 57,955 | $ | 46,100 | |||||||||||||||
| Stock-based compensation expense | (5,213) | (6,019) | (9,889) | (10,364) | |||||||||||||||||||
| Acquisition related expenses (1) | (1,116) | (1,134) | (4,585) | (1,624) | |||||||||||||||||||
| Other adjustments (2) | (2,854) | — | (3,120) | 66 | |||||||||||||||||||
| Non-GAAP general and administrative | $ | 22,562 | $ | 17,894 | $ | 40,361 | $ | 34,178 | |||||||||||||||
| GAAP total operating expenses | $ | 73,307 | $ | 63,871 | $ | 140,431 | $ | 125,758 | |||||||||||||||
| Amortization of intangible assets | (881) | (527) | (1,619) | (1,052) | |||||||||||||||||||
| Stock-based compensation expense | (9,250) | (9,952) | (16,782) | (17,666) | |||||||||||||||||||
| Acquisition related expenses (1) | (1,093) | (1,701) | (5,536) | (2,782) | |||||||||||||||||||
| Other adjustments (2) | (3,046) | — | (4,490) | (1,344) | |||||||||||||||||||
| Non-GAAP total operating expenses | $ | 59,037 | $ | 51,691 | $ | 112,004 | $ | 102,914 | |||||||||||||||
1.Includes transaction-related expenses as well as post-combination compensation expenses. For the three months ended June 30, 2024, adjustments consist primarily of transaction related expenses associated with the acquisition of C2i Genomics ($1.0 million) and adjustments relating to the remeasurement of contingent consideration related to our adoption of a multi-platform IVD strategy ($0.1 million). For the three months ended June 30, 2023, adjustments consist primarily of post-combination compensation expenses associated with the acquisition of HalioDx. For the six months ended June 30, 2024, adjustments consist of transaction related expenses associated with the acquisition of C2i Genomics. For the six months ended June 30, 2023, adjustments consist primarily of post-combination compensation expenses associated with the acquisition of HalioDx. | |||||||||||||||||||||||
| 2.For the three months ended June 30, 2024, adjustments primarily include expense related to restructuring costs associated with a reduction in our Biopharmaceutical and Other segment ($2.9 million) and expense related to restructuring costs associated with portfolio prioritization including the reduction in Envisia commercial support ($0.2 million). For the six months ended June 30, 2024, adjustments include additional restructuring costs associated with the portfolio prioritization including the reduction in Envisia commercial support ($1.4 million). For the six months ended June 30, 2023, includes $1.3 million related to impairment charges. | |||||||||||||||||||||||
| VERACYTE, INC. | |||||||||||||||||||||||
| RECONCILIATION OF U.S. GAAP to NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Reconciliation of Adjusted EBITDA: | |||||||||||||||||||||||
| GAAP Net Income (Loss) | $ | 5,734 | $ | (8,402) | $ | 3,870 | $ | (16,493) | |||||||||||||||
| Amortization of intangible assets | 3,790 | 5,341 | 7,443 | 10,670 | |||||||||||||||||||
| Depreciation expense | 1,948 | 1,518 | 3,885 | 2,859 | |||||||||||||||||||
| Stock-based compensation expense | 9,854 | 10,449 | 17,873 | 18,550 | |||||||||||||||||||
| Acquisition related expenses (1) | 1,093 | 1,701 | 5,596 | 2,856 | |||||||||||||||||||
| Other expense (income), net (2) | (3,052) | 287 | (6,313) | (1,902) | |||||||||||||||||||
| Other adjustments (3) | 3,046 | — | 4,496 | 1,344 | |||||||||||||||||||
| Income tax expense (benefit) | 1,627 | 125 | 1,583 | 125 | |||||||||||||||||||
| Adjusted EBITDA | $ | 24,040 | $ | 11,019 | $ | 38,433 | $ | 18,009 | |||||||||||||||
| Reconciliation of Non-GAAP Net Income (Loss) | |||||||||||||||||||||||
| GAAP Net Income (Loss) | $ | 5,734 | $ | (8,402) | $ | 3,870 | $ | (16,493) | |||||||||||||||
| Amortization of intangible assets | 3,790 | 5,341 | 7,443 | 10,670 | |||||||||||||||||||
| Stock-based compensation expense | 9,854 | 10,449 | 17,873 | 18,550 | |||||||||||||||||||
| Acquisition related expenses (1) | 1,093 | 1,701 | 5,596 | 2,856 | |||||||||||||||||||
| Other adjustments (3) | 3,046 | — | 4,496 | 1,344 | |||||||||||||||||||
| Tax adjustments (4) | (114) | (551) | (1,246) | (1,127) | |||||||||||||||||||
| Non-GAAP Net Income | $ | 23,403 | $ | 8,538 | $ | 38,032 | $ | 15,800 | |||||||||||||||
| Reconciliation of Non-GAAP Earnings per Share | |||||||||||||||||||||||
| Diluted earnings per share, GAAP | $ | 0.07 | $ | (0.12) | $ | 0.05 | $ | (0.23) | |||||||||||||||
| Amortization of intangible assets | 0.05 | 0.07 | 0.10 | 0.15 | |||||||||||||||||||
| Stock-based compensation expense | 0.13 | 0.14 | 0.23 | 0.26 | |||||||||||||||||||
| Acquisition related expenses (1) | 0.01 | 0.02 | 0.07 | 0.04 | |||||||||||||||||||
| Other adjustments (3) | 0.04 | — | 0.06 | 0.02 | |||||||||||||||||||
| Tax adjustments (4) | — | (0.01) | (0.02) | (0.02) | |||||||||||||||||||
| Rounding and impact of dilutive shares | — | 0.02 | 0.01 | (0.01) | |||||||||||||||||||
| Diluted earnings per share, non-GAAP | $ | 0.30 | $ | 0.12 | $ | 0.50 | $ | 0.21 | |||||||||||||||
| Weighted average shares outstanding used in computing diluted earnings per share | |||||||||||||||||||||||
| Diluted, GAAP | 77,163,149 | 72,478,662 | 76,600,079 | 72,327,897 | |||||||||||||||||||
| Dilutive effect of equity awards (5) | — | 1,221,721 | — | 1,354,135 | |||||||||||||||||||
| Diluted, non-GAAP | 77,163,149 | 73,700,383 | 76,600,079 | 73,682,032 | |||||||||||||||||||
1.Includes transaction-related expenses as well as post-combination compensation expenses. For the three months ended June 30, 2024, adjustments consist primarily of transaction related expenses associated with the acquisition of C2i Genomics ($1.0 million) and adjustments relating to the remeasurement of contingent consideration related to our adoption of a multi-platform IVD strategy ($0.1 million). For the three months ended June 30, 2023, adjustments consist primarily of post-combination compensation expenses associated with the acquisition of HalioDx. For the six months ended June 30, 2024, adjustments consist of transaction related expenses associated with the acquisition of C2i Genomics. For the six months ended June 30, 2023, adjustments consist primarily of post-combination compensation expenses associated with the acquisition of HalioDx. | |||||||||||||||||||||||
| 2.Includes interest income and income related to research tax credits. | |||||||||||||||||||||||
| 3.For the three months ended June 30, 2024, adjustments primarily include expense related to restructuring costs associated with a reduction in our Biopharmaceutical and Other segment ($2.9 million) and expense related to restructuring costs associated with portfolio prioritization including the reduction in Envisia commercial support ($0.2 million). For the six months ended June 30, 2024, adjustments include additional restructuring costs associated with the portfolio prioritization including the reduction in Envisia commercial support ($1.4 million). For the six months ended June 30, 2023, includes $1.3 million related to impairment charges. | |||||||||||||||||||||||
| 4.Incremental non-GAAP tax expense reflects the tax impact of the non-GAAP adjustments listed. | |||||||||||||||||||||||
| 5.In those periods in which GAAP net (loss) income is negative and Non-GAAP net (loss) income is positive, Non-GAAP diluted weighted average shares outstanding includes potentially dilutive common shares from equity awards as determined using the treasury stock method. | |||||||||||||||||||||||