Company: TXG
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001770787-25-000032
Chunk: 258

Company: 10x Genomics, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part II, Item 1A
Chunk 258
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ations of research spending, negatively impacting our sales. For example, in March 2025, the Department of Health and Human Services, which includes the NIH, announced a reduction in workforce of approximately 20,000 employees, or approximately one quarter of its staff, and the NIH removed the chiefs of four of the NIH’s twenty-seven institutes and centers. The NIH laid off hundreds of additional employees in May 2025. Fewer staff available to process, review and make decisions regarding funding requests or complete other funding-related activities could delay or prevent our customers from receiving necessary funding to purchase our products. Further, in January 2025 a number of scientific gatherings and panels across federal science agencies, including several meetings of NIH study sections which review applications for fellowships and grants, were canceled pursuant to agency notices. These meetings can be hard to reschedule and can substantially delay grant approvals.  Any cancellations or delays in the ability of NIH or other funding bodies to make and execute decisions to fund research which uses our products could delay or prevent researchers from purchasing our products or reduce their purchases, negatively impacting our financial results. A decrease in the amount of, or delay in the approval of, appropriations to or disbursements from the NIH or other funding organizations, such as the Medical Research Council in the United Kingdom, could result in less funding available for life sciences research or negatively affect the timing of purchases of our products. For example, one potential customer in 2025 was no longer able to purchase our products for an AIDS vaccine-related research project due to a near-total freeze in January 2025 followed by a substantial reduction in March 2025 in funding from the United States Agency for International Development (USAID). Delays, reductions, modification of the terms or cancellations of funding could also result in a decrease in the aggregate amount of grants awarded or funding disbursed for life sciences research or the redirection of existing funding to other projects or priorities, any of which in turn could cause our customers and potential customers to reduce, delay or cancel purchases of our products. For example, in March 2025 the NIH terminated approximately seven hundred research grants totaling more than $2.4 billion that funded scientific research, including studies related to breast cancer, Alzheimer’s disease and HIV prevention, among other topics. Our operating results may fluctuate substantially due to any such delays, reductions, modification of terms or cancellations. 

In addition to the risks to customer spending posed by recent changes and uncertainty related to U.S academic and government funding including direct government funding of research