Related Parties

6 Months Ended

Jun. 30, 2022

14. Related Parties

The Company’s significant transactions with its related parties are primarily comprised of revenue generating activities under collaboration and license agreements.

Significant related party transactions included in the condensed consolidated balance sheet are summarized below (in thousands):


	As of June 30, 2022		As of December 31, 2021
Accounts receivable:
Joyn	$	2	$	5
Motif		235		3,020
Allonnia		499		849
Arcaea		2,050		724
Verb		467		—
	$	3,253	$	4,598
Deferred revenue, current and non-current:
Joyn	$	2,478	$	4,608
Motif		51,933		52,171
Genomatica		11,349		17,111
Allonnia		35,876		38,016
Arcaea		43,831		47,356
Other equity investees		628		1,559
	$	146,095	$	160,821

Significant related party transactions included in the condensed consolidated statements of operations and comprehensive loss are summarized below (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Foundry revenue:
Joyn	$	947	$	1,154	$	2,129	$	2,752
Motif		507		4,612		1,852		10,104
Genomatica		2,405		2,903		5,763		6,201
Allonnia		439		1,098		3,660		3,364
Arcaea		2,363		1,191		6,287		1,191
Verb		639		—		938		—
Other equity investees		673		4		872		10
	$	7,973	$	10,962	$	21,501	$	23,622

In April 2022, the Company provided convertible note financing to its equity method investee, Joyn, in the principal amount of $3.0 million for general working capital purposes. In June 2022, the Company agreed to invest up to an additional $7.0 million in Joyn pursuant to one or more additional notes on substantially the same terms as the April note. As of June 30, 2022, the Company has funded $3.5 million of its $7.0 million commitment to Joyn. Each convertible promissory note is unsecured, matures on March 31, 2023 and bears interest at 4.5% per annum. The notes are automatically convertible into equity at a 20% discount upon a qualifying equity financing. Additionally, the Company can elect to convert the notes into equity at a 20% discount upon a non-qualifying equity financing, at maturity, or elect to be repaid in cash upon a change in control or initial public offering. The Company evaluated the notes’ conversion and redemption features for embedded derivatives and determined that there is no embedded derivative to record. The Company also determined that the convertible notes are not in-substance common stock and therefore are not considered an additional investment in the equity method investee. The convertible notes are accounted for as notes receivable, measured at amortized cost and evaluated for impairment at each reporting date. The carrying value of the notes receivable was $6.5 million as of June 30, 2022 and is included in prepaid expenses and other current assets on the condensed consolidated balance sheet.

Refer to Notes 4 and 12 for additional details on the Company’s investments and equity method investments held in its related parties.