Company: BLLN
Filing Date: 2025-10-17
Form Type: S-1/A
Source: 0001193125-25-242632
Chunk: 156

Company: BillionToOne, Inc.
Filing Date: 2025-10-17
Form: S-1/A
Chunk 156
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 gain on extinguishment of debt

Net gain on extinguishment of debt relates to the extinguishment of the Western Alliance Bank debt and 2022 Convertible
Notes.

We elected to prepay the outstanding amount of the Western Alliance Bank debt in August 2024 and wrote-off the
unamortized debt issuance costs incurred before prepayment fees in connection with the extinguishment.

The 2022 Convertible Notes were amended such that the 2022
Convertible Notes converted into a round of preferred equity not originally contemplated in the agreement which we concluded was accounted for as a debt extinguishment. The gain on extinguishment consisted of the difference between the fair value of
preferred equity received and the carrying amount of the 2022 Convertible Notes.

Change in fair value of term loan

Change in fair value of term loan relates to the Oberland Capital debt where we elected the fair value option under ASC 825 and is accounted for at fair value on a
recurring basis. We also elected to record interest expense related to the Oberland Capital debt as change in fair value of term loan.

Change in fair value of convertible notes

Change in fair value of convertible notes relates to convertible debt where we elected the fair value option under ASC 825 and is
accounted for at fair value on a recurring basis. We also elected to record interest expense related to the convertible debt as change in fair value of convertible notes.

104

Other expense, net Other expense, net is comprised of the change in fair value of our liabilities related to warrants for common stock and redeemable convertible preferred stock and various income or expense items of a non-recurringnature. Provision for income taxes Provision for income taxes consists of U.S. federal, state, and foreign income taxes. We maintain a full valuation allowance on our federal and state deferred tax assets as we have concluded that it is not more likely than not that the deferred tax assets will be realized. We account for uncertain tax positions in accordance with ASC 740-10, Accounting for Uncertainty in Income Taxes. We recognize the tax effects of an uncertain tax position only if it is more likely than not to be sustained based solely on its technical merits as of the reporting date and only in an amount more likely than not to be sustained upon review by the tax authorities. Interest and penalties related to uncertain tax position are classified in the financial statements as income tax expense. Results of operations The following table sets forth information derived from our statements of operations for each of the periods presented (in thousands):

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