txg-20220630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________

FORM 10-Q

_____________________

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________

Commission File Number: 001-39035

10x Genomics, Inc.

(Exact Name of Registrant as Specified in Its Charter)


Delaware			45-5614458
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

6230 Stoneridge Mall Road
Pleasanton, California			94588
(Address of principle executive offices)			(Zip Code)

(925) 401-7300

(Registrant’s telephone number, including area code)

_____________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading
Symbol

Name of each exchange
on which registered

Class A common stock, par value $0.00001 per share

TXG

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of July 29, 2022, the registrant had 95,046,366 shares of Class A common stock, $0.00001 par value per share, outstanding and 18,867,255 shares of Class B common stock, $0.00001 par value per share, outstanding.

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		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Operations	4
	Condensed Consolidated Statements of Comprehensive Loss	5
	Condensed Consolidated Statements of Stockholders’ Equity	6
	Condensed Consolidated Statements of Cash Flows	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	22
Item 4.	Controls and Procedures	22
PART II.	OTHER INFORMATION	24
Item 1.	Legal Proceedings	24
Item 1A.	Risk Factors	24
Item 6.	Exhibits	25
	Signatures	26

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10x Genomics, Inc.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (this “Quarterly Report”) contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which are subject to the “safe harbor” created by those sections. All statements, other than statements of historical facts included in this Quarterly Report, including statements concerning our plans, objectives, goals, beliefs, business strategies, results of operations, financial position, sufficiency of our capital resources and business outlook, future events, business conditions, costs and expenses that we expect to incur or to save in connection with our planned workforce reduction, uncertainties related to the global COVID-19 pandemic and the impact of our and our customers' and suppliers' responses to it, business trends and other information, may be forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or variations of them or similar terminology. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot provide any assurance that these expectations will prove to be correct and actual results may vary materially from what is expressed in or indicated by the forward-looking statement. Such statements reflect the current views of our management with respect to our business, results of operations and future financial performance.

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors, including those described in the section titled “Risk Factors” in this Quarterly Report and Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2021 (“Annual Report”). Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. For a more detailed discussion of the risks, uncertainties and other factors that could cause actual results to differ, please refer to the “Risk Factors” in our Annual Report and this Quarterly Report, as such risk factors may be updated from time to time in our periodic filings with the U.S. Securities and Exchange Commission ("SEC"). Our periodic filings are accessible on the SEC’s website at www.sec.gov.

The forward-looking statements made in this Quarterly Report relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report to reflect events or circumstances after the date of this Quarterly Report or to reflect new information or the occurrence of unanticipated events, except as required by law. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or occur and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may make. Further, as the COVID-19 pandemic is continuously evolving, our forward-looking statements may not accurately or fully reflect the potential impact that the COVID-19 pandemic may have on our business, financial condition, results of operations and cash flows.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

Unless otherwise stated or the context otherwise indicates, references to “we,” “us,” “our,” “the Company,” “10x” and similar references refer to 10x Genomics, Inc. and its subsidiaries.

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Channels for Disclosure of Information

Investors and others should note that we may announce material information to the public through filings with the SEC, our website (https://www.10xGenomics.com), press releases, public conference calls, public webcasts and our social media accounts, (https://twitter.com/10xGenomics, https://www.facebook.com/10xGenomics and

https://www.linkedin.com/company/10xgenomics). We use these channels to communicate with our customers and the public about the Company, our products, our services and other matters. We encourage our investors, the media and others to review the information disclosed through such channels as such information could be deemed to be material information. The information on such channels, including on our website and our social media accounts, is not incorporated by reference in this Quarterly Report and shall not be deemed to be incorporated by reference into any other filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such a filing. Please note that this list of disclosure channels may be updated from time to time.

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10x Genomics, Inc.

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

10x Genomics, Inc.

Condensed Consolidated Balance Sheets

(In thousands)


	June 30, 2022		December 31, 2021
	(Unaudited)		(Note 1)
Assets
Current assets:
Cash and cash equivalents	$	274,187	$	587,447
Marketable securities	225,546		—
Restricted cash	508		1,028
Accounts receivable, net	76,204		85,254
Inventory	70,646		59,966
Prepaid expenses and other current assets	19,141		13,896
Total current assets	666,232		747,591
Property and equipment, net	223,001		169,492
Restricted cash	7,095		7,598
Operating lease right-of-use assets	73,425		60,918
Goodwill	4,511		4,511
Intangible assets, net	24,128		25,397
Other noncurrent assets	3,199		3,319
Total assets	$	1,001,591	$	1,018,826
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	26,731	$	17,351
Accrued compensation and related benefits	23,505		31,626
Accrued expenses and other current liabilities	53,222		50,909

Deferred revenue	6,473		5,340
Operating lease liabilities	7,977		5,131

Total current liabilities	117,908		110,357


Accrued license fee, noncurrent	—		5,814

Operating lease liabilities, noncurrent	91,040		76,847
Other noncurrent liabilities	9,127		8,240
Total liabilities	218,075		201,258
Commitments and contingencies (Note 4)
Stockholders’ equity:
Preferred stock	—		—
Common stock	2		2
Additional paid-in capital	1,757,671		1,680,865
Accumulated deficit	(970,192)		(863,321)
Accumulated other comprehensive income (loss)	(3,965)		22
Total stockholders’ equity	783,516		817,568
Total liabilities and stockholders’ equity	$	1,001,591	$	1,018,826

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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10x Genomics, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except share and per share data)


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Revenue	$	114,609	$	115,842	$	229,105	$	221,663
Cost of revenue	27,704		4,915		53,182		21,975
Gross profit	86,905		110,927		175,923		199,688
Operating expenses:
Research and development	70,685		53,402		134,763		95,285

Selling, general and administrative	79,337		68,703		146,012		125,607
Accrued contingent liabilities	—		(850)		—		(660)
Total operating expenses	150,022		121,255		280,775		220,232
Loss from operations	(63,117)		(10,328)		(104,852)		(20,544)
Other income (expense):
Interest income	1,238		58		1,807		108
Interest expense	(109)		(209)		(237)		(430)
Other (expense) income, net	(1,843)		521		(2,243)		(208)

Total other (expense) income	(714)		370		(673)		(530)
Loss before provision for income taxes	(63,831)		(9,958)		(105,525)		(21,074)
Provision for income taxes	627		1,094		1,346		1,529
Net loss	$	(64,458)	$	(11,052)	$	(106,871)	$	(22,603)

Net loss per share, basic and diluted	$	(0.57)	$	(0.10)	$	(0.94)	$	(0.21)
Weighted-average shares of common stock used in computing net loss per share, basic and diluted	113,574,757		109,866,294		113,272,158		109,293,342

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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10x Genomics, Inc.

Condensed Consolidated Statements of Comprehensive Loss

(Unaudited)

(In thousands)


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net loss	$	(64,458)	$	(11,052)	$	(106,871)	$	(22,603)
Other comprehensive income (loss), net of tax:
Unrealized losses on available-for-sale marketable securities	(1,326)		—		(3,729)		—
Foreign currency translation adjustment	(196)		10		(258)		108
Other comprehensive income (loss), net of tax	(1,522)		10		(3,987)		108
Comprehensive loss	$	(65,980)	$	(11,042)	$	(110,858)	$	(22,495)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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10x Genomics, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited)

(In thousands, except share data)


	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
	Shares	Amount
Balance as of December 31, 2021	112,514,977	$	2	$	1,680,865	$	(863,321)	$	22	$	817,568
Issuance of Class A common stock related to equity awards	761,373	—		7,826		—		—		7,826
Vesting of shares subject to repurchase, including early exercised options	—	—		32		—		—		32
Stock-based compensation	—	—		26,137		—		—		26,137
Net loss	—	—		—		(42,413)		—		(42,413)
Other comprehensive loss	—	—		—		—		(2,465)		(2,465)
Balance as of March 31, 2022	113,276,350	2		1,714,860		(905,734)		(2,443)		806,685
Issuance of Class A common stock related to equity awards	610,447	—		6,360		—		—		6,360
Vesting of shares subject to repurchase, including early exercised options	—	—		32		—		—		32
Stock-based compensation	—	—		36,419		—		—		36,419
Net loss	—	—		—		(64,458)		—		(64,458)
Other comprehensive loss	—	—		—				(1,522)		(1,522)
Balance as of June 30, 2022	113,886,797	$	2	$	1,757,671	$	(970,192)	$	(3,965)	$	783,516


	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
	Shares	Amount
Balance as of December 31, 2020	108,485,909	$	2	$	1,544,218	$	(805,098)	$	(50)	$	739,072
Issuance of Class A common stock related to equity awards	1,102,618	—		8,546		—		—		8,546
Vesting of shares subject to repurchase, including early exercised options	—	—		42		—		—		42
Stock-based compensation	—	—		16,253		—		—		16,253
Net loss	—	—		—		(11,551)		—		(11,551)
Other comprehensive income	—	—		—		—		98		98
Balance as of March 31, 2021	109,588,527	2		1,569,059		(816,649)		48		752,460
Issuance of Class A common stock related to equity awards	1,151,392	—		16,194		—		—		16,194
Vesting of shares subject to repurchase, including early exercised options	—	—		42		—		—		42
Stock-based compensation	—	—		26,932		—		—		26,932
Net loss	—	—		—		(11,052)		—		(11,052)
Other comprehensive income	—	—		—		—		10		10
Balance as of June 30, 2021	110,739,919	$	2	$	1,612,227	$	(827,701)	$	58	$	784,586

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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10x Genomics, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)


	Six Months Ended June 30,
	2022		2021
Operating activities:
Net loss	$	(106,871)	$	(22,603)
Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization	12,691		9,641
Stock-based compensation expense	62,360