Supplemental Financial Information

6 Months Ended

Jun. 30, 2023

Supplemental Financial Statement Information [Abstract]

6. Supplemental Financial Information

Cash, Cash Equivalents and Restricted Cash

The reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheet to the totals shown within the condensed consolidated statement of cash flows is as follows (in thousands):


	As of June 30,
	2023		2022
Cash and cash equivalents	$	1,105,787	$	1,377,152
Restricted cash included in prepaid expenses and other current assets (1)		22,483		4,239
Restricted cash included in other non-current assets (1)		43,791		39,444
Total cash, cash equivalents and restricted cash	$	1,172,061	$	1,420,835

(1) Includes cash balances collateralizing letters of credit associated with the Company’s facility leases and a customer prepayment requiring segregation and restrictions in its use in accordance with the customer agreement.

Inventory, net

Inventory, net consisted of the following (in thousands):


	As of June 30,			As of December 31,
	2023			2022
Finished goods	$	4,435		$	6,556
Raw materials		905			1,590
Less: inventory reserve		(4,949	)		(3,782	)
Inventory, net	$	391		$	4,364

Property, Plant, and Equipment, net

Property, plant, and equipment, net consisted of the following (in thousands):


	As of June 30,			As of December 31,
	2023			2022
Lab equipment	$	180,025		$	183,292
Leasehold improvements		136,197			125,307
Buildings and facilities		46,927			46,019
Construction in progress		19,831			23,426
Computer equipment and software		15,322			15,219
Furniture and fixtures		8,352			8,206
Land		6,060			6,060
Total property, plant, and equipment		412,714			407,529
Less: Accumulated depreciation and amortization		(118,470	)		(92,756	)
Property, plant, and equipment, net	$	294,244		$	314,773

During the three months ended June 30, 2023, the Company identified certain lab equipment acquired as part of the Zymergen, Inc. (“Zymergen”) acquisition that met the asset held-for-sale criteria and were reclassified as assets held-for-sale in the condensed consolidated balance sheet. The aggregate net book value of the equipment of $14.9 million was written down to fair value less cost to sell, resulting in an impairment loss of $9.0 million in the three and six months ended June 30, 2023, included in general and

administrative expense in the condensed consolidated statement of operations and comprehensive loss. The fair value measurement relating to the impairment loss was based on the executed sales agreement and represents a Level 2 input within the fair value hierarchy. As of June 30, 2023, the Company had $4.2 million of lab equipment, net of accumulated depreciation, classified as held for sale in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheet. The sale is expected to be completed by the end of 2023.

Capitalization

The following table presents the Company’s authorized, issued, and outstanding common stock as of the dates indicated (in thousands):


	Authorized		Issued		Outstanding
Common stock as of June 30, 2023:
Class A		10,500,000		1,595,167		1,478,611
Class B		4,500,000		378,273		356,093
Class C		800,000		120,000		120,000
		15,800,000		2,093,440		1,954,704
Common stock as of December 31, 2022:
Class A		10,500,000		1,448,234		1,337,499
Class B		4,500,000		383,649		354,477
Class C		800,000		200,000		200,000
		15,800,000		2,031,883		1,891,976

On April 3, 2023, the Company issued 2.8 million shares of its Class A common stock as purchase consideration for the acquisition of StrideBio, Inc. (“StrideBio”) (see Note 8).

On May 9, 2023, the Company issued 2.0 million shares of its Class A common stock, valued at approximately $2.5 million, as settlement for employee retention payments associated with the FGen acquisition.

Refer to Note 9, Stock-Based Compensation, for shares of common stock issued in relation to the Company’s equity incentive plans.

Changes in the number of shares of Class C common stock issued and outstanding represent an exchange of Class C common stock for the same number of shares of Class A common stock pursuant to a stockholder exchange agreement.

Supplemental cash flow information

The following table presents non-cash investing and financing activities (in thousands):


	Six Months Ended June 30,
	2023		2022 (as adjusted)*
Supplemental disclosure of non-cash investing and financing activities:
ROU Asset obtained in exchange for new operating lease liabilities upon adoption of ASC 842	$	—	$	147,744
ROU Asset obtained in exchange for new finance lease liabilities upon adoption of ASC 842		—		3,397
ROU Asset obtained in exchange for new operating lease liabilities		13,649		28,000
ROU Asset obtained in exchange for new finance lease liabilities		—		1,096
Purchases of property and equipment included in accounts payable and accrued expenses		2,324		6,741
Equity received in related parties		—		8,873
Convertible financial instruments received for Cell Engineering services		5,595		11,939
Equity securities and warrants received for Cell Engineering services		12,493		3,423
Settlement of contingent consideration - restricted stock		2,262		—
Common stock issued for business and asset acquisitions		3,581		17,015
Contingent consideration for business acquisition		—		12,306

* As adjusted to reflect the impact of the adoption of ASC 842 as of January 1, 2022. See Note 1 for a summary of the adjustments.