Delaware |
85-1966622 |
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(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
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333 Ludlow Street, North Tower; 6th Floor
Stamford, Connecticut 06902
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(Address of Principal Executive Offices) (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Class A common stock, par value $0.0001 per share | WGS | The Nasdaq Stock Market LLC | ||||||||||||
Warrants to purchase one share of Class A common stock, each at an exercise price of $379.50 per share | WGSWW | The Nasdaq Stock Market LLC |
Exhibit No |
Description | ||||
99.1 |
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99.2 |
GENEDX HOLDINGS CORP. | |||||||||||
Date: | July 30, 2024 | By: | /s/ Katherine Stueland | ||||||||
Name: | Katherine Stueland | ||||||||||
Title: | Chief Executive Officer |
2Q24 | 1Q24 | 4Q23 | 3Q23 | 2Q23 | |||||||||||||||||||||||||
Volumes | |||||||||||||||||||||||||||||
Whole exome, whole genome | 18,017 | 16,592 | 15,663 | 13,216 | 11,855 | ||||||||||||||||||||||||
Hereditary cancer | 5,482 | 6,868 | 8,240 | 8,556 | 7,142 | ||||||||||||||||||||||||
Other panels | 34,204 | 31,763 | 33,692 | 35,861 | 35,931 | ||||||||||||||||||||||||
Total | 57,703 | 55,223 | 57,595 | 57,633 | 54,928 | ||||||||||||||||||||||||
Revenue ($ millions) | |||||||||||||||||||||||||||||
Whole exome, whole genome | $ | 50.7 | $ | 44.0 | $ | 39.2 | $ | 34.0 | $ | 28.7 | |||||||||||||||||||
Hereditary cancer | 3.8 | 5.5 | 5.5 | 4.5 | 3.8 | ||||||||||||||||||||||||
Other panels | 13.3 | 10.7 | 11.2 | 10.6 | 10.6 | ||||||||||||||||||||||||
Data information | 1.1 | 1.3 | 2.2 | 1.3 | 2.1 | ||||||||||||||||||||||||
Total | $ | 68.9 | $ | 61.5 | $ | 58.1 | $ | 50.4 | $ | 45.2 |
Three months ended June 30, 2024 | Three months ended March 31, 2024 | ||||||||||||||||||||||||||||||||||
GeneDx | Legacy Sema4 | Total | GeneDx | Legacy Sema4 | Total | ||||||||||||||||||||||||||||||
Revenue | $68,924 | $1,590 | $70,514 | $61,461 | $961 | $62,422 | |||||||||||||||||||||||||||||
Adjusted cost of services | 26,523 | 145 | 26,668 | 24,099 | — | 24,099 | |||||||||||||||||||||||||||||
Adjusted gross profit (loss) | $42,401 | $1,445 | $43,846 | $37,362 | $961 | $38,323 | |||||||||||||||||||||||||||||
Adjusted gross margin % | 61.5% | 90.9% | 62.2% | 60.8% | 100.0% | 61.4% |
Three months ended June 30, 2023 | |||||||||||||||||
GeneDx | Legacy Sema4 | Total | |||||||||||||||
Revenue | $45,226 | $3,480 | $48,706 | ||||||||||||||
Adjusted cost of services | 28,452 | — | 28,452 | ||||||||||||||
Adjusted gross profit (loss) | $16,774 | $3,480 | $20,254 | ||||||||||||||
Adjusted gross margin % | 37.1% | 100.0% | 41.6% |
Three months ended June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
Reported | Depreciation and amortization | Stock-based compensation expense | Restructuring costs | Change in FV of financial liabilities | Charges related to business exit | Other | Adjusted | ||||||||||||||||||||||||||||||||||||||||
Diagnostic test revenue | $ | 69,439 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 69,439 | |||||||||||||||||||||||||||||||
Other revenue | 1,075 | — | — | — | — | — | — | 1,075 | |||||||||||||||||||||||||||||||||||||||
Total revenue | 70,514 | — | — | — | — | — | — | 70,514 | |||||||||||||||||||||||||||||||||||||||
Cost of services | 27,562 | (808) | (86) | — | — | — | — | 26,668 | |||||||||||||||||||||||||||||||||||||||
Gross profit (loss) | 42,952 | 808 | 86 | — | — | — | — | 43,846 | |||||||||||||||||||||||||||||||||||||||
Gross margin | 60.9 | % | 62.2 | % | |||||||||||||||||||||||||||||||||||||||||||
Research and development | 10,902 | (211) | (347) | (35) | — | — | — | 10,309 | |||||||||||||||||||||||||||||||||||||||
Selling and marketing | 16,585 | (1,225) | (368) | (63) | — | — | — | 14,929 | |||||||||||||||||||||||||||||||||||||||
General and administrative | 25,170 | (2,974) | (2,307) | (150) | — | — | — | 19,739 | |||||||||||||||||||||||||||||||||||||||
Impairment loss | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Other, net | 874 | — | — | — | — | — | — | 874 | |||||||||||||||||||||||||||||||||||||||
Loss from operations | (10,579) | 5,218 | 3,108 | 248 | — | — | — | (2,005) | |||||||||||||||||||||||||||||||||||||||
Interest income (expense), net | (894) | — | — | — | — | — | — | (894) | |||||||||||||||||||||||||||||||||||||||
Other income (expense), net | (17,890) | — | — | — | 4,409 | — | 13,450 | (31) | |||||||||||||||||||||||||||||||||||||||
Income tax benefit | 190 | — | — | — | — | — | — | 190 | |||||||||||||||||||||||||||||||||||||||
Net loss | $ | (29,173) | $ | 5,218 | $ | 3,108 | $ | 248 | $ | 4,409 | $ | — | $ | 13,450 | $ | (2,740) |
Three months ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Reported | Depreciation and amortization | Stock-based compensation expense | Restructuring costs | Change in FV of financial liabilities | Charges related to business exit | Other | Adjusted | ||||||||||||||||||||||||||||||||||||||||
Diagnostic test revenue | $ | 46,635 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 46,635 | |||||||||||||||||||||||||||||||
Other revenue | 2,071 | — | — | — | — | — | — | 2,071 | |||||||||||||||||||||||||||||||||||||||
Total revenue | 48,706 | — | — | — | — | — | — | 48,706 | |||||||||||||||||||||||||||||||||||||||
Cost of services | 29,949 | (1,233) | (251) | (13) | — | — | — | 28,452 | |||||||||||||||||||||||||||||||||||||||
Gross profit (loss) | 18,757 | 1,233 | 251 | 13 | — | — | — | 20,254 | |||||||||||||||||||||||||||||||||||||||
Gross margin | 38.5 | % | 41.6 | % | |||||||||||||||||||||||||||||||||||||||||||
Research and development | 17,138 | (4,656) | 675 | (815) | — | — | — | 12,342 | |||||||||||||||||||||||||||||||||||||||
Selling and marketing | 15,182 | (1,225) | 143 | (326) | — | — | — | 13,774 | |||||||||||||||||||||||||||||||||||||||
General and administrative | 37,341 | (3,218) | (675) | (483) | — | — | — | 32,965 | |||||||||||||||||||||||||||||||||||||||
Impairment loss | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Other, net | 718 | — | — | — | — | 334 | 3,238 | 4,290 | |||||||||||||||||||||||||||||||||||||||
Loss from operations | (51,622) | 10,332 | 108 | 1,637 | — | (334) | (3,238) | (43,117) | |||||||||||||||||||||||||||||||||||||||
Interest income (expense), net | 1,074 | — | — | — | — | — | — | 1,074 | |||||||||||||||||||||||||||||||||||||||
Other income (expense), net | 3,633 | — | — | — | (3,547) | — | (86) | — | |||||||||||||||||||||||||||||||||||||||
Income tax benefit | 196 | — | — | — | — | — | — | 196 | |||||||||||||||||||||||||||||||||||||||
Net loss | $ | (46,719) | $ | 10,332 | $ | 108 | $ | 1,637 | $ | (3,547) | $ | (334) | $ | (3,324) | $ | (41,847) |
Three months ended March 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
Reported | Depreciation and amortization | Stock-based compensation expense | Restructuring costs | Change in FV of financial liabilities | Charges related to business exit | Other | Adjusted | ||||||||||||||||||||||||||||||||||||||||
Diagnostic test revenue | $ | 61,104 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 61,104 | |||||||||||||||||||||||||||||||
Other revenue | 1,318 | — | — | — | — | — | — | 1,318 | |||||||||||||||||||||||||||||||||||||||
Total revenue | 62,422 | — | — | — | — | — | — | 62,422 | |||||||||||||||||||||||||||||||||||||||
Cost of services | 25,011 | (816) | (48) | (48) | — | — | — | 24,099 | |||||||||||||||||||||||||||||||||||||||
Gross profit (loss) | 37,411 | 816 | 48 | 48 | — | — | — | 38,323 | |||||||||||||||||||||||||||||||||||||||
Gross margin | 59.9 | % | 61.4 | % | |||||||||||||||||||||||||||||||||||||||||||
Research and development | 11,567 | (196) | 187 | (103) | — | — | — | 11,455 | |||||||||||||||||||||||||||||||||||||||
Selling and marketing | 16,085 | (1,225) | 20 | (400) | — | — | — | 14,480 | |||||||||||||||||||||||||||||||||||||||
General and administrative | 22,445 | (3,011) | 292 | (292) | — | — | — | 19,434 | |||||||||||||||||||||||||||||||||||||||
Impairment loss | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Other, net | 974 | — | — | — | — | — | — | 974 | |||||||||||||||||||||||||||||||||||||||
Loss from operations | (13,660) | 5,248 | (451) | 843 | — | — | — | (8,020) | |||||||||||||||||||||||||||||||||||||||
Interest income (expense), net | (597) | — | — | — | — | — | — | (597) | |||||||||||||||||||||||||||||||||||||||
Other income (expense), net | (6,064) | — | — | — | 6,101 | — | — | 37 | |||||||||||||||||||||||||||||||||||||||
Income tax benefit | 82 | — | — | — | — | — | — | 82 | |||||||||||||||||||||||||||||||||||||||
Net loss | $ | (20,239) | $ | 5,248 | $ | (451) | $ | 843 | $ | 6,101 | $ | — | $ | — | $ | (8,498) |
June 30, 2024 (Unaudited) | December 31, 2023 | ||||||||||
Assets: | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 56,076 | $ | 99,681 | |||||||
Marketable securities | 50,784 | 30,467 | |||||||||
Accounts receivable | 25,500 | 32,371 | |||||||||
Due from related parties | 693 | 445 | |||||||||
Inventory, net | 10,322 | 8,777 | |||||||||
Prepaid expenses and other current assets | 18,792 | 10,598 | |||||||||
Total current assets | 162,167 | 182,339 | |||||||||
Operating lease right-of-use assets | 25,624 | 26,900 | |||||||||
Property and equipment, net | 31,339 | 32,479 | |||||||||
Intangible assets, net | 165,613 | 172,625 | |||||||||
Other assets (1) |
4,357 | 4,413 | |||||||||
Total assets | $ | 389,100 | $ | 418,756 | |||||||
Liabilities and Stockholders’ Equity: | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued expenses | $ | 51,959 | $ | 37,456 | |||||||
Due to related parties | 1,213 | 1,379 | |||||||||
Short-term lease liabilities | 4,001 | 3,647 | |||||||||
Other current liabilities | 11,097 | 16,336 | |||||||||
Total current liabilities | 68,270 | 58,818 | |||||||||
Long-term debt, net of current portion | 52,160 | 52,688 | |||||||||
Long-term lease liabilities | 60,800 | 62,938 | |||||||||
Other liabilities | 12,660 | 14,735 | |||||||||
Deferred taxes | 1,167 | 1,560 | |||||||||
Total liabilities | 195,057 | 190,739 | |||||||||
Stockholders’ Equity: | |||||||||||
Preferred stock | — | — | |||||||||
Class A common stock | 2 | 2 | |||||||||
Additional paid-in capital | 1,543,182 | 1,527,778 | |||||||||
Accumulated deficit | (1,349,600) | (1,300,188) | |||||||||
Accumulated other comprehensive income | 459 | 425 | |||||||||
Total stockholders’ equity | 194,043 | 228,017 | |||||||||
Total liabilities and stockholders’ equity | $ | 389,100 | $ | 418,756 |
June 30, | Six months ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Diagnostic test revenue | $ | 69,439 | $ | 46,635 | $ | 130,543 | $ | 88,485 | |||||||||||||||
Other revenue | 1,075 | 2,071 | 2,393 | 3,360 | |||||||||||||||||||
Total revenue | 70,514 | 48,706 | 132,936 | 91,845 | |||||||||||||||||||
Cost of services | 27,562 | 29,949 | 52,573 | 57,852 | |||||||||||||||||||
Gross profit | 42,952 | 18,757 | 80,363 | 33,993 | |||||||||||||||||||
Research and development | 10,902 | 17,138 | 22,469 | 31,730 | |||||||||||||||||||
Selling and marketing | 16,585 | 15,182 | 32,670 | 28,634 | |||||||||||||||||||
General and administrative | 25,170 | 37,341 | 47,615 | 81,030 | |||||||||||||||||||
Impairment loss | — | — | — | 2,120 | |||||||||||||||||||
Other operating expenses, net | 874 | 718 | 1,848 | 2,465 | |||||||||||||||||||
Loss from operations | (10,579) | (51,622) | (24,239) | (111,986) | |||||||||||||||||||
Non-operating income (expenses), net | |||||||||||||||||||||||
Change in fair value of warrants and earn-out contingent liabilities | (4,409) | 3,547 | (10,510) | 94 | |||||||||||||||||||
Interest expense, net | (894) | 1,074 | (1,491) | 1,039 | |||||||||||||||||||
Other expense, net | (13,481) | 86 | (13,444) | 2,802 | |||||||||||||||||||
Total non-operating income, net | (18,784) | 4,707 | (25,445) | 3,935 | |||||||||||||||||||
Loss before income taxes | (29,363) | (46,915) | $ | (49,684) | $ | (108,051) | |||||||||||||||||
Income tax benefit | 190 | 196 | 272 | 343 | |||||||||||||||||||
Net loss | $ | (29,173) | $ | (46,719) | $ | (49,412) | $ | (107,708) | |||||||||||||||
Weighted average shares outstanding of Class A common stock | 26,617,955 | 25,418,358 | 26,340,063 | 22,754,948 | |||||||||||||||||||
Basic and diluted net loss per share, Class A common stock | $ | (1.10) | $ | (1.84) | $ | (1.88) | $ | (4.73) |
Six months ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Operating activities | |||||||||||
Net loss | $ | (49,412) | $ | (107,708) | |||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
Depreciation and amortization expense | 10,466 | 18,968 | |||||||||
Stock-based compensation expense | 2,657 | 156 | |||||||||
Change in fair value of warrants and contingent liabilities | 10,510 | (94) | |||||||||
Deferred tax benefit | (272) | (343) | |||||||||
Provision for excess and obsolete inventory | 109 | 2,620 | |||||||||
Legal reserves | 13,450 | — | |||||||||
Change in third party payor reserves | 1,066 | (4,308) | |||||||||
Gain on sale of assets | — | (2,954) | |||||||||
Gain on debt forgiveness | — | (2,750) | |||||||||
Impairment loss | — | 2,120 | |||||||||
Other | 1,738 | 412 | |||||||||
Change in operating assets and liabilities: | |||||||||||
Accounts receivable | 6,871 | 10,174 | |||||||||
Inventory | (1,654) | (486) | |||||||||
Accounts payable and accrued expenses | (10,359) | (25,399) | |||||||||
Other assets and liabilities | (6,088) | 531 | |||||||||
Net cash used in operating activities | (20,918) | (109,061) | |||||||||
Investing activities | |||||||||||
Consideration on escrow paid for GeneDx acquisition | — | (12,144) | |||||||||
Purchases of property and equipment | (1,795) | (2,762) | |||||||||
Proceeds from sales of assets | — | 3,634 | |||||||||
Purchases of marketable securities | (29,381) | — | |||||||||
Proceeds from sales of marketable securities | 598 | — | |||||||||
Proceeds from maturities of marketable securities | 8,720 | — | |||||||||
Development of internal-use software assets | — | (461) | |||||||||
Net cash used in investing activities | (21,858) | (11,733) | |||||||||
Financing activities | |||||||||||
Proceeds from offerings, net of issuance costs | — | 143,002 | |||||||||
Exercise of stock options | 161 | 266 | |||||||||
Long-term debt principal payments | — | (2,000) | |||||||||
Finance lease payoff and principal payments | (990) | (1,222) | |||||||||
Net cash (used in) provided by financing activities | (829) | 140,046 | |||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (43,605) | 19,252 | |||||||||
Cash, cash equivalents and restricted cash, at beginning of period | 100,668 | 138,303 | |||||||||
Cash, cash equivalents and restricted cash, at end of period (1) |
$ | 57,063 | $ | 157,555 | |||||||
Supplemental disclosures of cash flow information | |||||||||||
Cash paid for interest | $ | 4,033 | $ | 946 | |||||||
Cash paid for taxes | $ | 557 | $ | 1,003 | |||||||
Stock consideration paid for purchase of business | $ | — | $ | 6,692 | |||||||
Stock consideration paid pursuant to exercise of Perceptive warrant | $ | 12,586 | $ | — | |||||||
Purchases of property and equipment in accounts payable and accrued expenses | $ | 501 | $ | 109 | |||||||
Assets acquired under capital leases obligations | $ | 689 | $ | — |