Company: TXG
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001770787-25-000032
Chunk: 63

Company: 10x Genomics, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 63
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ships 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 projects, actions by the federal government of the United States generally targeting federal funding to research institutions who are or could be purchasers of our products pose risks to our operating results. For example, in 2025 the United States government threatened to freeze or cancel billions of dollars of federal funding to multiple institutions, including certain of our customers, if such institutions did not take certain actions to limit activism on campus. These or similar actions, such as revoking the tax exempt status of research universities, could have the effect of delaying, reducing or eliminating institutional funding available for research projects, which could in turn delay, limit or cancel purchases of our products by researchers at targeted institutions and negatively impact our revenue. Some institutions have responded to these risks of losing federal funding by implementing