Bionano Genomics, Inc. — Q2 2023 Form 10-Q
Reporting period: Three and six months ended June 30, 2023. The unaudited filing was signed August 9, 2023. Bionano sells optical genome mapping (OGM) systems and consumables, software, diagnostic and genome-analysis services, and nucleic-acid extraction products.
Financial results and liquidity
| Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 |
|---|---|---|---|---|
| Revenue | $8.7 million | $6.7 million | $16.1 million | $12.4 million |
| Gross profit / margin | $2.3 million / 27% | $1.5 million / 22% | $4.4 million / 27% | $2.3 million / 19% |
| Operating loss | $39.2 million | $32.1 million | $77.1 million | $62.0 million |
| Net loss | $38.9 million | $32.2 million | $76.0 million | $62.1 million |
| Net loss per share, basic and diluted | $1.24 | $1.13 | $2.46 | $2.18 |
- Q2 product revenue rose 38% to $6.6 million; service and other revenue increased 9% to $2.1 million. H1 revenue rose 30%, with product revenue up 34% and service and other revenue up 19%.
- As of June 30, cash and cash equivalents were $14.9 million and short-term investments were $62.2 million. Working capital was $89.1 million; accumulated deficit was $424.8 million.
- H1 operating cash use was $69.1 million, compared with $60.8 million a year earlier. Investing activities provided $46.1 million and financing activities provided $32.7 million, including $33.5 million gross proceeds from ATM stock sales.
- Total liabilities were $56.6 million. The filing reports operating and finance lease liabilities totaling approximately $10.7 million; it reports no conventional borrowing balance. Acquisition-related contingent consideration was $24.6 million, including $10.0 million current.
Changes, outlook, and notable items
- Gross margin improved year over year, particularly for products, which benefited from higher sales, improved chip yields, and lower scrap and quality-control costs. Service gross profit declined in Q2 as processing costs increased.
- Operating expenses rose 24% in Q2 and 27% in H1, driven by higher compensation and headcount, development and professional-service costs, marketing, Purigen-related amortization, and remeasurement of contingent consideration. Interest income increased with higher rates.
- Saphyr installed base reached 281, up approximately 43% year over year. Flowcells sold rose 108% in Q2 and 86% in H1. Management attributed demand growth to market awareness, published OGM data, and reagent-rental activity.
- Management stated that available cash and investments would not be sufficient for the next 12 months and disclosed substantial doubt about the company’s ability to continue as a going concern. Continued operations depend on additional financing; financing may not be available on acceptable terms or at all, and equity issuance could dilute shareholders.
- In May 2023, the company announced a plan to reduce cash expenditures by approximately $20 million over the next four to five quarters, including a workforce reduction, fewer planned hires, lower safety-stock inventory, and other cost controls. Management expected planned R&D and SG&A spending to decrease in the remainder of 2023, but cautioned that savings may not be realized as expected.
- After quarter-end, the company sold approximately 2.1 million shares through its Cowen ATM for about $13.0 million gross proceeds, before offering costs. On August 4, it completed a 1-for-10 reverse stock split; historical share and per-share figures in the filing are retrospectively adjusted.
- Management reported no material litigation exposure and no material goodwill impairment indication at June 30. Key risks include ongoing cash burn and financing needs, early-stage commercial adoption, execution of cost reductions and acquisitions, customer and research-budget variability, regulatory and reimbursement uncertainty, supply-chain dependence, and potential Nasdaq listing compliance issues.
Important facts for investors to verify
- Cash runway assumptions, expected financing timing and terms, and the company’s ability to maintain operations as a going concern.
- Progress and realized savings from the $20 million cost-reduction initiative, including effects on commercial and research execution.
- Whether revenue and consumables growth translate into durable gross-margin improvement and lower operating cash use.
- Future ATM share sales, dilution, post-split share counts, and Nasdaq bid-price compliance.
- Achievement, timing, and cash impact of BioDiscovery and Purigen milestones, including the $24.6 million contingent-consideration liability.