Company: BLLN
Filing Date: 2025-06-20
Form Type: DRS
Source: 0000950123-25-006095
Chunk: 131

Company: BillionToOne, Inc.
Filing Date: 2025-06-20
Form: DRS
Chunk 131
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 profit represents revenue less cost of revenue. Gross margin is gross profit expressed as a percentage of revenue. Our gross profit has been, and may in the future
be, influenced by several factors, including test volumes and prices paid for our tests, changes in materials and consumables costs, laboratory processing costs, personnel costs, shipping, and logistics costs.

Operating expenses

Research and development expenses

Research and development expenses include costs incurred to develop our technology, clinical samples and conduct clinical studies to develop and support our products.
These costs consist primarily of personnel-related expenses such as salaries and related benefits for our product development employees. Research and development expenses also include non-personnel costs such
as materials and consumables used for research, clinical third-party services and consulting expenses, and an allocation of our general overhead expenses. These costs are expensed in the period as incurred.

We believe that continued investment in our products is important to our future growth and, as a result, we expect our research and development costs to increase in
absolute dollars and moderately decline as a percentage of revenue over time if our revenue increases

Selling, general and administrative expenses

Selling, general and administrative expenses consist primarily of personnel-related expenses such as salaries and related benefits for our sales, marketing, and general
and administrative employees. Selling, general and administrative expenses also include commission payments, marketing related expenses in promoting our brand and tests, and training costs for the sales employees.

We expect selling, general and administrative expenses to increase in absolute dollars as we increase our sales and marketing personnel, increase product offerings, grow
our operations and incur additional expenses associated with operating as a public company. These expenses as a result of operating as a public company

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include expenses necessary to comply with the rules and regulations applicable to companies listed on Nasdaq and related compliance and reporting obligations pursuant to the rules and regulations
of the SEC, as well as higher expenses for general and director and officer insurance, investor relations and other professional services.

Interest income

Interest income consists of income earned on our short-term cash and cash equivalents and marketable securities.

Interest expense

Interest expense is attributable to our borrowing
with Western Alliance Bank, including the amortization of the debt discount. The debt with Western Alliance Bank was repaid in full in August 2024 with the proceeds from the new Oberland Capital debt. Interest on our finance leases is also recorded
in interest expense.

Net gain on extinguishment of debt

Net gain
on extinguishment of debt relates to the extinguishment of the Western Alliance Bank