UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
(Mark One)
For the quarterly period ended
OR
For the transition period from ________________ to ________________
Commission File Number:
(Exact Name of Registrant as Specified in its Charter)
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
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(Address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including area code: (
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
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Trading Symbol(s) |
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Name of each exchange on which registered |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer |
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Accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
As of August 31, 2021, there were
Table of Contents
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PART I. |
1 |
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Item 1. |
1 |
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1 |
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Consolidated Statements of Operations and Comprehensive Income |
2 |
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Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Deficit |
3 |
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4 |
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5 |
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Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
21 |
Item 3. |
31 |
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Item 4. |
31 |
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PART II. |
33 |
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Item 1. |
33 |
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Item 1A. |
33 |
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Item 2. |
62 |
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Item 3. |
62 |
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Item 4. |
62 |
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Item 5. |
62 |
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Item 6. |
63 |
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64 |
i
PART I-FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements (Unaudited)
Cytek Biosciences, Inc.
Consolidated Balance Sheets
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June 30, |
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December 31, |
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(In thousands, except share and per share data) |
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2021 |
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2020 |
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(unaudited) |
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(audited) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
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$ |
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Trade accounts receivable, net |
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Restricted cash |
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- |
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Inventories |
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Prepaid expenses and other current assets |
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Total current assets |
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Deferred income tax assets, noncurrent |
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Property and equipment, net |
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Goodwill |
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Intangible assets, net |
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Other noncurrent assets |
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Total assets |
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$ |
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$ |
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Liabilities, redeemable convertible preferred stock and stockholders’ deficit |
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Current liabilities: |
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Trade accounts payable |
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$ |
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$ |
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Legal settlement liability, current |
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Accrued expenses |
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Other current liabilities |
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Deferred revenue, current |
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Total current liabilities |
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Legal settlement liability, noncurrent |
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Deferred revenue, noncurrent |
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Other noncurrent liabilities |
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Total liabilities |
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$ |
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$ |
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Commitments and contingencies (Note 15) |
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Redeemable convertible preferred stock, $ |
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Stockholders’ deficit: |
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Common stock, $ |
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Additional paid-in capital |
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Accumulated deficit |
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( |
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( |
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Accumulated other comprehensive income |
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Noncontrolling interest in consolidated subsidiary |
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- |
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Total stockholders’ deficit |
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$ |
( |
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$ |
( |
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Total liabilities, redeemable convertible preferred stock and stockholders’ deficit |
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$ |
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$ |
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The accompanying notes are an integral part of these unaudited interim consolidated financial statements
1
Cytek Biosciences, Inc.
Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
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Three months ended |
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Six months ended |
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June 30, |
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June 30, |
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June 30, |
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June 30, |
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(In thousands, except share and per share data) |
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2021 |
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2020 |
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2021 |
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2020 |
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Revenue, net: |
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Product |
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$ |
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$ |
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$ |
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$ |
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Service |
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Total revenue, net |
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Cost of sales: |
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Product |
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Service |
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Total cost of sales |
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Gross profit |
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Operating expenses: |
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- |
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Research and development |
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Sales and marketing |
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General and administrative |
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Total operating expenses |
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Income (loss) from operations |
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( |
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( |
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Other income (expense): |
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Interest expense |
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( |
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( |
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( |
) |
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( |
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Interest income |
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Other income (expense), net |
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( |
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( |
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Total other income (expense), net |
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( |
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( |
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Income (loss) before income taxes |
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( |
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Provision for (benefit from) income taxes |
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( |
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( |
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Net income |
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$ |
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$ |
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$ |
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$ |
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Less: net income allocated to participating securities |
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(2,670 |
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( |
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( |
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( |
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Net income attributable to common stockholders, basic and diluted |
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$ |
- |
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$ |
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$ |
- |
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$ |
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Net income attributable to common stockholders per share, basic |
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$ |
- |
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$ |
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$ |
- |
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$ |
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Net income attributable to common stockholders per share diluted |
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$ |
- |
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$ |
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$ |
- |
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$ |
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Weighted-average shares used in calculating net income per share, basic |
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Weighted-average shares used in calculating net income per share, diluted |
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Comprehensive income: |
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- |
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Net income |
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$ |
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$ |
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$ |
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$ |
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Foreign currency translation adjustment, net of tax |
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( |
) |
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( |
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Net comprehensive income |
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$ |
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$ |
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$ |
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$ |
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The accompanying notes are an integral part of these unaudited interim consolidated financial statements
2
Cytek Biosciences, Inc
Consolidated Statements of Redeemable Convertible
Preferred Stock and Stockholders’ Deficit
(Unaudited)
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Redeemable convertible |
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Additional |
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Accumulated other |
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Noncontrolling |
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Total |
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preferred stock |
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Common stock |
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paid-in |
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Accumulated |
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comprehensive |
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interest in consolidated |
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stockholders’ |
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(In thousands, except share data) |
Shares |
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Amount |
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Shares |
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Amount |
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capital |
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deficit |
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income |
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subsidiary |
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deficit |
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Balances at December 31, 2020 |
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$ |
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$ |
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$ |
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$ |
( |
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$ |
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$ |
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$ |
( |
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Exercise of stock options |
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Stock-based compensation |
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Foreign currency translation adjustment, net of tax |
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Net income |
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Noncontrolling interest |
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Balances at March 31, 2021 |
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$ |
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$ |
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$ |
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$ |
( |
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$ |
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$ |
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$ |
( |
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Exercise of stock options |
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- |
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Stock-based compensation |
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Foreign currency translation adjustment, net of tax |
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Net income |
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Noncontrolling interest |
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- |
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- |
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Balances at June 30, 2021 |
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$ |
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$ |
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$ |
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$ |
( |
) |
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$ |
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$ |
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$ |
( |
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Redeemable convertible |
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Additional |
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Accumulated other |
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Total |
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preferred stock |
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Common stock |
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paid-in |
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Accumulated |
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comprehensive |
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stockholders’ |
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(In thousands, except share data) |
Shares |
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Amount |
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Shares |
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Amount |
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capital |
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deficit |
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income (loss) |
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deficit |
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Balances at December 31, 2019 |
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$ |
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$ |
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$ |
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$ |
( |
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$ |
( |
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$ |
( |
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Exercise of stock options |
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Stock-based compensation |
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Foreign currency translation adjustment, net of tax |
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( |
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( |
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Net loss |
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( |
) |
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( |
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Balances at March 31, 2020 |
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$ |
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$ |
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$ |
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$ |
( |
) |
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$ |
( |
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$ |
( |
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Exercise of stock options |
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- |
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Stock-based compensation |
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Foreign currency translation adjustment, net of tax |
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( |
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( |
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Net income |
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Balances at June 30, 2020 |
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$ |
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$ |
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$ |
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$ |
( |
) |
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$ |
( |
) |
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$ |
( |
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The accompanying notes are an integral part of these unaudited interim consolidated financial statements
3
Cytek Biosciences, Inc
Consolidated Statements of Cash Flows
(Unaudited)
|
Six months ended June 30, |
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||||
(In thousands) |
2021 |
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2020 |
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Cash flows from operating activities: |
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Net income |
$ |
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$ |
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Adjustments to reconcile net income to net cash (used in) provided by operating activities: |
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Depreciation and amortization |
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Stock-based compensation |
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Gain on equity method investment |
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( |
) |
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- |
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Provision for excess and obsolete inventory |
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Interest expenses for accretion of the legal settlement liabilities |
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- |
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Change in operating assets and liabilities: |
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Trade accounts receivable |
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( |
) |
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Inventories |
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( |
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( |
) |
Prepaid expenses and other assets |
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( |
) |
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( |
) |
Trade accounts payable |
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( |
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( |
) |
Accrued expenses and other liabilities |
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( |
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Legal settlement liabilities |
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Deferred revenue |
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Net cash (used in) provided by operating activities |
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( |
) |
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Cash flows from investing activities: |
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Purchase of property and equipment |
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( |
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( |
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Payment for additional investment in Cytek Japan, net of cash acquired |
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- |
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Net cash used in investing activities |
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( |
) |
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( |
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Cash flows from financing activities: |
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Proceeds from Paycheck Protection Program loan |
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- |
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Repayment of Paycheck Protection Program loan |
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