Company: BLLN
Filing Date: 2025-08-11
Form Type: DRS/A
Source: 0000950123-25-007483
Chunk: 337

Company: BillionToOne, Inc.
Filing Date: 2025-08-11
Form: DRS/A
Chunk 337
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 as of
December 31, 2023 and 2024. Inputs for fair value were determined by evaluating the probability of various conversion scenarios and applicable market interest rates.

The estimated fair value of the Notes was determined by using a scenario-based analysis that estimated the fair value of the Notes based on the
probability-weighted present value of expected future investment returns, considering possible outcomes available to the noteholder, including conversions to common stock and maturity. The estimated fair value of the Notes was $47.7 million as
of December 31, 2023.

During May 2024, concurrent with the issuance of Series D redeemable convertible preferred stock, and pursuant to negotiation
with the Note Holders, the Company and Note Holders agreed to settle the Notes through the issuance of Series C-1 redeemable convertible preferred stock to the Note Holders instead of Series D redeemable
convertible preferred stock. The Notes converted into an aggregate of 1,726,823 shares of Series C-1 redeemable convertible preferred stock at a conversion price of approximately $19.6143 per share. The change
in terms of the Notes was accounted for as a debt extinguishment as the settlement was not pursuant to the original conversion terms. Immediately prior to the extinguishment, the Company recorded a mark-to-market adjustment for the Notes resulting in a loss of $0.8 million which was recorded to change in fair value of convertible notes in the Company’s statements of operations and
comprehensive loss. Upon extinguishment, the Company derecognized the Notes on the balance sheets at their fair value immediately prior to the extinguishment of $48.5 million. The difference of $8.6 million between the fair market value of
the Series C-1 redeemable convertible preferred shares received by the Note Holders of $39.9 million and the fair value of the Notes immediately prior to the extinguishment was recorded as a gain on debt
extinguishment in the Company’s statements of operations and comprehensive loss.

The Notes were subordinated in right of payment to all indebtedness
between the Company and Western Alliance Bank (“WAB”). The Note Holders agreed, that as long as any debt remains outstanding with WAB or WAB has obligations to make additional credit extensions to the Company, the Note Holders would not
have received any payment other than a conversion of the Notes into equity securities, unless otherwise agreed by WAB in writing. The priority to WAB excluded payments in cash, including interest, but did not