Related Parties

12 Months Ended

Dec. 31, 2023

Related Party Transactions [Abstract]

Related Parties

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 consolidated balance sheet, excluding the Company’s investments and equity method investments, are summarized below (in thousands):

	As of December 31,
	2023		2022
Accounts receivable:
Allonnia	$	322	$	140
Ayana	233		403
Arcaea	126		335
Verb	61		361
BiomEdit	—		288
Other equity investees	—		31
	$	742	$	1,558
Deferred revenue, current and non-current:
Motif FoodWorks	$	45,426	$	52,018
Allonnia	36,062		35,876
Arcaea	33,066		38,334
BiomEdit	7,712		8,144
Genomatica	2,018		6,250
Ayana	56		—
Other equity investees	139		875
	$	124,479	$	141,497

Significant related party transactions included in the consolidated statements of 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,
	2023		2022		2021
Cell Engineering revenue:
Motif FoodWorks	$	6,660	$	1,937	$	20,224
Arcaea	6,024		13,490		3,676
Genomatica	4,232		10,861		12,868
BiomEdit	2,171		1,016		—
Ayana	1,323		1,266		—
Verb	584		2,359		—
Allonnia	523		4,332		5,126
Joyn Bio	—		2,896		5,254
Other equity investees	705		656		13
	$	22,222	$	38,813	$	47,161

Refer to Notes 5 and 16 for additional details on the Company’s investments and equity method investments held in its related parties.

Beginning in April 2022, the Company purchased a series of convertible promissory notes from its then equity method investee, Joyn Bio, in the aggregate principal amount of $10.0 million for the purpose of financing Joyn Bio's working

capital needs. Each convertible promissory note was unsecured, had a maturity date of March 31, 2023 and an interest rate of 4.5% per annum. The notes were automatically convertible into equity at a 20% discount upon a qualifying equity financing. Additionally, the Company could 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. During the year ended December 31, 2022, the carrying amount of the notes was reduced by $5.3 million, which represents the excess loss on the equity method investment in Joyn Bio over the carrying value of the investment, which has been reduced to zero during the year ended December 31, 2022. The outstanding balance of the notes receivable was effectively settled as part of the business combination transaction with Bayer and Joyn Bio described in Note 3 and was included as part of the consideration paid for the business combination.