Related Parties

6 Months Ended

12 Months Ended

Jun. 30, 2022

Dec. 31, 2021

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.

24. Related Parties

Related party transactions included in the Consolidated Balance Sheets, excluding the Company’s investments and equity method investments, are summarized below (in thousands):


	As of December 31,
	2021		2020
Accounts receivable:
Joyn	$	5	$	—
Motif		3,020		2,403
Genomatica		—		1,500
Allonnia		849		1,309
Arcaea		724		—

	$	4,598	$	5,212

Deferred revenue, current and non-current:
Joyn	$	4,608	$	9,862
Motif		52,171		53,952
Genomatica		17,111		30,128
Allonnia		38,016		26,064
Arcaea		47,356		—
Other equity investees		1,559		72

	$	160,821	$	120,078

Related party transactions

included in the Consolidated Statements Operations and Comprehensive Loss, excluding the losses on the Company’s investments and equity method investments, are summarized below (in thousands):


	Year Ended December 31,
	2021		2020		2019
Foundry revenue:
Joyn	$	5,254	$	7,273	$	9,349
Motif		20,224		20,798		18,986
Genomatica		12,868		9,431		6,248
Allonnia		5,126		4,960		—
Arcaea		3,676		—		—
Other equity investees		13		73		685

	$	47,161	$	42,535	$	35,268

Refer to Notes 10 and 20 for additional details on the Company’s investments and equity method investments held in its related parties.