# EDGAR Filing Document

**Accession Number:** 0001401708
**File Stem:** 0001401708-23-000050
**Filing Date:** 2023-2
**Character Count:** 33118
**Document Hash:** f96e8cb16365639f54d52185b66cdf5b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001401708-23-000050.hdr.sgml**: 20230228

**ACCESSION NUMBER**: 0001401708-23-000050

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230228

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230228

**DATE AS OF CHANGE**: 20230228

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** NanoString Technologies Inc
- **CENTRAL INDEX KEY:** 0001401708
- **STANDARD INDUSTRIAL CLASSIFICATION:** BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836]
- **IRS NUMBER:** 200094687
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35980
- **FILM NUMBER:** 23685043

**BUSINESS ADDRESS:**
- **STREET 1:** 530 FAIRVIEW AVENUE NORTH
- **CITY:** SEATTLE
- **STATE:** WA
- **ZIP:** 98109
- **BUSINESS PHONE:** 206-378-6266

**MAIL ADDRESS:**
- **STREET 1:** 530 FAIRVIEW AVENUE NORTH
- **CITY:** SEATTLE
- **STATE:** WA
- **ZIP:** 98109

?xml version="1.0" ? nstg-20230228

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC 20549**

_______________________________

**FORM 8-K** 

__________________________

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d)**

**of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): February 28, 2023** 

_______________________________

**NanoString Technologies, Inc.** 

**(Exact name of registrant as specified in its charter)**

________________________________

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-35980** | **20-0094687** |
| **(State or other jurisdiction<br>of incorporation)** | **(Commission<br>File Number)** | **(IRS Employer<br>Identification No.)** |

---

**530 Fairview Avenue North** 

**Seattle, Washington 98109** 

**(Address of principal executive offices, including zip code)**

**(206) 378-6266** 

**(Registrant's telephone number, including area code)**

**(Former name or former address, if changed since last report)**

____________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, $0.0001 par value per share | NSTG | The NASDAQ Stock Market LLC |
|  |  | (The NASDAQ Global Market) |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act). ◻

**Item 2.02 Results of Operations and Financial Condition.**

On February 28, 2023, NanoString Technologies, Inc. (the "Company") issued a press release reporting its financial results for the fiscal quarter and year ended December 31, 2022. A copy of the press release is furnished herewith as Exhibit 99.1.&nbsp;&nbsp;&nbsp;&nbsp;

**Item 7.01 Regulation FD Disclosure.**

On February 28, 2023, the Company posted supplemental financial information on its investor relations website (investors.nanostring.com).

The Company announces material information to the public through a variety of means, including filings with the Securities and Exchange Commission, press releases, public conference calls, the Company's website (www.nanostring.com), its investor relations website (investors.nanostring.com), and its news site (investors.nanostring.com/press-releases). The Company uses these channels, as well as social media, including its Twitter account (@nanostringtech), LinkedIn account (www.linkedin.com/company/nanostring-technologies), and Facebook page (www.facebook.com/NanoStringTechnologies), to communicate with investors and the public about the Company, its products, and other matters. Therefore, the Company encourages investors, the media, and others interested in the Company to review the information it makes public in these locations, as such information could be deemed to be material information.

**Item 9.01 Financial Statements and Exhibits.**

**(d) Exhibits.**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | <u>[Press release dated February 28, 2023](nstg-20228kex991.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

The information furnished in this Current Report under Items 2.02 and 7.01 and the exhibit attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| | | | **NanoString Technologies, Inc.** |
| Date: | February 28, 2023 | By: | /s/ R. Bradley Gray |
|  |  |  | R. Bradley Gray |
|  |  |  | President and Chief Executive Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![nstg-logoa06.jpg](nstg-logoa06.jpg)

**NanoString Technologies Releases Fourth Quarter and Full Year 2022 Operating Results and Provides 2023 Financial Outlook**

*- Generated Record Orders for Over 105 Spatial Biology Instruments, Representing 50% Growth Year-over-Year -*

*- Q4 Revenue Over $34 Million -* 

**SEATTLE - February 28, 2023** - NanoString Technologies, Inc. (NASDAQ:NSTG), a leading provider of life science tools for discovery and translational research, today reported financial results for the fourth quarter and fiscal year ended December 31, 2022.

"We are thrilled with the momentum that's building in the spatial biology market. In 2022, we grew spatial biology instrument orders 50% year-on-year, and with approximately $40 million of CosMx orders in backlog, we are well-positioned for strong revenue growth in 2023," said Brad Gray, President and CEO of NanoString. "At the Advances in Genome Biology and Technology (AGBT) conference earlier this month, we wowed researchers with demonstrations of our AtoMx Spatial Informatics Platform and customer-generated data using our new 6,000-plex CosMx RNA panel. We believe that we currently offer researchers the most compelling portfolio of spatial biology solutions, and with CosMx RNA assays that provide 12 times the data of competing platforms, and the only cloud-based spatial informatics suite, our lead is growing."

**Fourth Quarter Financial Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue of $34.4 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Spatial biology revenue of $14.8 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• nCounter® revenue, inclusive of all service and other revenue, of $19.6 million

**Full Year Financial Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue of $127.3 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Spatial biology revenue of $44.7 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• nCounter revenue, inclusive of all service and other revenue, of $82.6 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash, cash equivalents and short-term investments balance of $196.5 million as of December 31, 2022

***<u>Spatial Biology</u>***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Generated over 105 new system orders in Q4, including approximately 80 for CosMx™ and over 25 for GeoMx®

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shipped our first 13 CosMx systems in Q4, generating Q4 revenue of approximately $3 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exited 2022 with over 165 CosMx systems in backlog to be shipped in future periods, representing revenue to be recognized in future periods of approximately $40 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Announced and demonstrated expansion of capability of CosMx to 6000-plex RNA at the 2023 AGBT annual conference, representing 12 times the number of data points per cell that can be analyzed as compared to competing spatial imaging platforms

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Entered a collaboration with Weill Cornell Medical to create a Spatial Atlas of Human Anatomy (SAHA), that will create multicellular, single-cell, and sub-cellular maps of 30 non-diseased organs from a healthy and diverse population of adults

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Released CosMx SMI dataset generated from formalin-fixed paraffin-embedded (FFPE) human liver samples. The dataset highlights the data quality of the platform, demonstrating high sensitivity and high specificity capabilities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total installed base of our spatial biology platforms of approximately 350, an increase of approximately 37% as compared to 2021

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total peer-reviewed publications featuring our spatial biology platforms were approximately 195 as of December 31, 2022, representing an increase of approximately 105 publications in the last 12 months

***<u>nCounter</u>***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total installed base of our nCounter platforms of approximately 1,120, an increase of approximately 7% as compared to 2021

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* Total peer-reviewed publications featuring nCounter were approximately 6,520 as of December 31, 2022, representing an increase of approximately 1,320 publications in the last 12 months

**2023 Outlook**

The company, based on its plans and initiatives for 2023, expects to record results approximately as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue of $170 to $180 million, including spatial biology revenue of $95 to $100 million and nCounter revenue, inclusive of all service and other revenue, of $75 to $80 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA loss of $65 to $75 million

**Financial Results**

We have elected to present selected non-GAAP, or adjusted, financial measures, including Adjusted EBITDA. These adjusted financial measures are calculated excluding certain items that may make it more challenging to compare our GAAP operating results across periods. Such items may include collaboration revenue, stock-based compensation, depreciation and amortization, or one-time charges such as transaction related fees and expenses or restructuring charges and severance costs. A reconciliation of adjusted financial measures to the nearest comparable GAAP financial measure can be found in the tables at the end of this press release.

---

| | | | | |
|:---|:---|:---|:---|:---|
| (dollars in thousands) | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Three Months Ended December 31,** |
|  | **GAAP** | **GAAP** | **Non-GAAP Adjusted** | **Non-GAAP Adjusted** |
|  | **2022** | **2021** | **2022** | **2021** |
| Total revenue | $34422 | $42455 | $34420 | $42007 |
| Cost of revenue | 21122 | 20046 | 19604 | 19394 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross margin | 39% | 53% | 43% | 54% |
| Research and development | 19086 | 18162 | 14996 | 15693 |
| Selling, general and administrative | 36895 | 31596 | 27530 | 26553 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDA | N / A | N / A | $(27710) | $(19633) |
| Non-operating expense, net | (1433) | (1912) | (1433) | (1912) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(44114) | $(29261) | $(29143) | $(21545) |
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **GAAP** | **GAAP** | **Non-GAAP Adjusted** | **Non-GAAP Adjusted** |
|  | **2022** | **2021** | **2022** | **2021** |
| Total revenue | $127262 | $145085 | $126725 | $143957 |
| Cost of revenue | 65475 | 68304 | 60721 | 65502 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross margin | 49% | 53% | 52% | 54% |
| Research and development | 70841 | 69504 | 58968 | 59301 |
| Selling, general and administrative | 143129 | 115503 | 115593 | 92985 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDA | N / A | N / A | $(108557) | $(73831) |
| Non-operating expense, net | (7360) | (7028) | (7360) | (7028) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(159543) | $(115254) | $(115917) | $(80859) |

---

**Supplemental Information**

As a supplement to the table above, we have posted to the investor relations section of our website, at https://investors.nanostring.com/financials/quarterly-results/default.aspx, supplemental financial data that include our adjusted financial measures as compared to the nearest comparable GAAP financial measures, for the fourth quarter and full year of 2022 and for each quarter of and the full year of 2021.

**Conference Call**

Management will host a conference call today beginning at 1:30 pm PT / 4:30 pm ET to discuss these results and answer questions. Investors and other interested parties can register for the call in advance by visiting https://investors.nanostring.com/events-and-presentations/default.aspx. After registering, an email confirmation will be sent including dial-in details and unique conference call codes for entry. Registration is open throughout the call, but to ensure connection for the full call, registration in advance is recommended. The link to the webcast and audio replay will be made available at the Investor Relations website: www.nanostring.com. A replay of the call will be available beginning February 28, 2023 at 7:30pm ET through midnight ET on March 14, 2023. To access the replay, dial (866) 813-9403 or (929) 458-6194 and reference Conference ID: 176735. The webcast will also be available on our website for one year following the completion of the call.

**Non-GAAP, or Adjusted, Financial Information**

We believe that the presentation of non-GAAP, or adjusted, financial information provides important supplemental information to management and investors regarding financial and business trends relating to our financial condition and results of operations. Reconciliation of adjusted financial measures to the most directly comparable financial result as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. A reconciliation of adjusted guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding certain expenses that may be incurred in the future. For further information regarding why we believe that these adjusted measures provide useful information to investors, the specific manner in which management uses these measures and some of the limitations associated with the use of these measures, please refer to "Notes Regarding Non-GAAP Financial Information" at the end of this press release.

**About NanoString Technologies, Inc.** 

**Forward-Looking Statements**

*This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding expectations for demand for our products and growth in our business, future revenue growth, future operating results, future cash flows, the impact of new products and expansion into new markets, the growth trajectory of our nCounter, GeoMx and CosMx franchises, and our estimated 2023 operating results and our anticipated GAAP and non-GAAP operating results. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties, many of which are beyond our control, include market acceptance of our products; delays or denials of regulatory approvals or clearances for products or applications; the extent and duration of adverse conditions in the general domestic and global economic markets; the effects of ongoing litigation; the impact of competition; the impact of expanded sales, marketing, product development and clinical activities on operating expenses; delays or other unforeseen problems with respect to manufacturing and product development; as well as the other risks set forth in our filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. NanoString Technologies disclaims any obligation to update these forward-looking statements.*

*The NanoString logo, NanoString, NanoString Technologies, GeoMx, CosMx, AtoMx and nCounter are trademarks or registered trademarks of NanoString Technologies, Inc., in the United States and/or other countries.*

**Contact**&nbsp;&nbsp;&nbsp;&nbsp;

Doug Farrell

Vice President, Investor Relations & Corporate Communications

dfarrell@nanostring.com

Phone: 206-602-1768

------

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| | | | | |
|:---|:---|:---|:---|:---|
| **NANOSTRING TECHNOLOGIES, INC.** | **NANOSTRING TECHNOLOGIES, INC.** | **NANOSTRING TECHNOLOGIES, INC.** | **NANOSTRING TECHNOLOGIES, INC.** | **NANOSTRING TECHNOLOGIES, INC.** |
| **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** |
| **(In thousands, except per share amounts)** | **(In thousands, except per share amounts)** | **(In thousands, except per share amounts)** | **(In thousands, except per share amounts)** | **(In thousands, except per share amounts)** |
| **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Revenue: |  |  |  |  |
| Instruments | $10925 | $17560 | $37589 | $55616 |
| Consumables | 18470 | 19874 | 70367 | 71846 |
| Services and other | 5027 | 5021 | 19306 | 17623 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 34422 | 42455 | 127262 | 145085 |
| Costs and expenses: |  |  |  |  |
| Cost of revenue | 21122 | 20046 | 65475 | 68304 |
| Research and development | 19086 | 18162 | 70841 | 69504 |
| Selling, general and administrative | 36895 | 31596 | 143129 | 115503 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total costs and expenses (a) (b) | 77103 | 69804 | 279445 | 253311 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss from operations | (42681) | (27349) | (152183) | (108226) |
| Other income (expense): |  |  |  |  |
| Interest income | 1078 | 147 | 2409 | 649 |
| Interest expense | (1885) | (1876) | (7535) | (7490) |
| Other income expense, net | (631) | (99) | (1917) | (20) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other expense, net | (1438) | (1828) | (7043) | (6861) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss before provision for income taxes | (44119) | (29177) | (159226) | (115087) |
| Provision for income taxes | 5 | (84) | (317) | (167) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(44114) | $(29261) | $(159543) | $(115254) |
| Net loss per share, basic and diluted | $(0.95) | $(0.64) | $(3.44) | $(2.54) |
| Weighted average shares used in computing basic and diluted net loss per share | 46663 | 45682 | 46406 | 45299 |
| (a) Includes $6.3 million and $6.5 million of stock-based compensation expense for the three month period ended December 31, 2022, and 2021, respectively, and $25.9 million and $30.2 million for the twelve months ended December 31, 2022 and 2021, respectively. | (a) Includes $6.3 million and $6.5 million of stock-based compensation expense for the three month period ended December 31, 2022, and 2021, respectively, and $25.9 million and $30.2 million for the twelve months ended December 31, 2022 and 2021, respectively. | (a) Includes $6.3 million and $6.5 million of stock-based compensation expense for the three month period ended December 31, 2022, and 2021, respectively, and $25.9 million and $30.2 million for the twelve months ended December 31, 2022 and 2021, respectively. | (a) Includes $6.3 million and $6.5 million of stock-based compensation expense for the three month period ended December 31, 2022, and 2021, respectively, and $25.9 million and $30.2 million for the twelve months ended December 31, 2022 and 2021, respectively. | (a) Includes $6.3 million and $6.5 million of stock-based compensation expense for the three month period ended December 31, 2022, and 2021, respectively, and $25.9 million and $30.2 million for the twelve months ended December 31, 2022 and 2021, respectively. |
| (b) Includes $3.0 million and $1.5 million of depreciation and amortization expense for the three month period ended December 31, 2022 and 2021, respectively, and $8.1 million and $5.9 million for the twelve months ended December 31, 2022 and 2021, respectively. | (b) Includes $3.0 million and $1.5 million of depreciation and amortization expense for the three month period ended December 31, 2022 and 2021, respectively, and $8.1 million and $5.9 million for the twelve months ended December 31, 2022 and 2021, respectively. | (b) Includes $3.0 million and $1.5 million of depreciation and amortization expense for the three month period ended December 31, 2022 and 2021, respectively, and $8.1 million and $5.9 million for the twelve months ended December 31, 2022 and 2021, respectively. | (b) Includes $3.0 million and $1.5 million of depreciation and amortization expense for the three month period ended December 31, 2022 and 2021, respectively, and $8.1 million and $5.9 million for the twelve months ended December 31, 2022 and 2021, respectively. | (b) Includes $3.0 million and $1.5 million of depreciation and amortization expense for the three month period ended December 31, 2022 and 2021, respectively, and $8.1 million and $5.9 million for the twelve months ended December 31, 2022 and 2021, respectively. |

---

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| | | |
|:---|:---|:---|
| **NANOSTRING TECHNOLOGIES, INC.** | **NANOSTRING TECHNOLOGIES, INC.** | **NANOSTRING TECHNOLOGIES, INC.** |
| **CONDENSED CONSOLIDATED BALANCE SHEETS** | **CONDENSED CONSOLIDATED BALANCE SHEETS** | **CONDENSED CONSOLIDATED BALANCE SHEETS** |
| **(In thousands)** | **(In thousands)** | **(In thousands)** |
| **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| | **December 31,** | **December 31,** |
|  | **2022** | **2021** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $112250 | $107068 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and equivalents | 898 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term investments | 84282 | 241821 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 31506 | 40130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory, net | 43273 | 31486 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other | 14565 | 7115 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 286774 | 427620 |
| Property and equipment, net | 44457 | 27043 |
| Operating lease right-of-use assets | 17581 | 19226 |
| Other assets | 4600 | 5592 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $353412 | $479481 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $16619 | $14283 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 7884 | 6765 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation and other employee benefits | 17494 | 17466 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer deposits | 1757 | 1278 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue and other liabilities, current portion | 9588 | 7474 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities, current portion | 5518 | 4889 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 58860 | 52155 |
| Deferred revenue and other liabilities, net of current portion | 3754 | 3527 |
| Long-term debt, net | 226622 | 225144 |
| Operating lease liabilities, net of current portion | 18362 | 21693 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 307598 | 302519 |
| Total stockholders' equity | 45814 | 176962 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $353412 | $479481 |

---

------

**Notes Regarding Non-GAAP Financial Information.** In addition to our results reported in accordance with U.S. generally accepted accounting principles ("GAAP"), we believe certain non-GAAP, or adjusted, measures are useful in evaluating our operating performance. We use adjusted financial measures to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that adjusted financial measures, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, adjusted financial information has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with U.S. GAAP. In particular, other companies, including companies in our industry, may calculate similarly titled non-GAAP or adjusted measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our adjusted financial measures as tools for comparison. A reconciliation is provided below for adjusted financial measures to the most directly comparable financial measure stated in accordance with U.S. GAAP. Investors are cautioned that there are a number of limitations associated with the use of non-GAAP, or adjusted, financial measures as analytical tools. Investors are encouraged to review the related U.S. GAAP financial measures and the reconciliation of these adjusted financial measures to their most directly comparable U.S. GAAP financial measure, and not to rely on any single financial measure to evaluate our business.

**Expenses excluded from non-GAAP, or adjusted, total revenue, cost of revenue, research and development expense and selling, general and administrative expense and net loss.** We exclude stock-based compensation expense, impairment expense and depreciation and amortization expense, which are non-cash expenses, from certain of our adjusted financial measures because we believe that excluding such items provides meaningful supplemental information regarding operational performance. We exclude certain expenses related to reorganization and restructuring charges, recoveries of certain previously remitted state and local taxes, cloud computing arrangement implementation expenses, litigation expenses, and other business development expenses from certain of our adjusted financial measures because such expenses have no direct correlation to the continuing operation of our business as such expenses are non-recurring or non-operating in nature, and therefore we believe excluding these items provides meaningful supplemental information regarding operational performance.

**Adjusted EBITDA.** Adjusted EBITDA is a non-GAAP financial measure defined as GAAP net loss adjusted for collaboration revenue, stock-based compensation expense, impairment expense, depreciation and amortization, net interest expense, other non-operating expense or income, provision for income tax and other special items as determined by management, including certain expenses related to reorganization and restructuring charges, recoveries of certain previously remitted state and local taxes, cloud computing arrangement implementation expenses, litigation expenses, and other business development expenses.

------

The following tables reflect the reconciliation between GAAP and non-GAAP measures (in thousands).

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| Net loss - GAAP | $(44114) | $(29261) | $(159543) | $(115254) |
| &nbsp;&nbsp;&nbsp;Collaboration revenue | (2) | (448) | (537) | (1128) |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 6264 | 6484 | 25908 | 30173 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 2965 | 1524 | 8116 | 5871 |
| &nbsp;&nbsp;&nbsp;Interest expense, net | 807 | 1729 | 5126 | 6841 |
| &nbsp;&nbsp;&nbsp;Other expense, net | 631 | 99 | 1917 | 20 |
| &nbsp;&nbsp;&nbsp;Provision for income taxes | (5) | 84 | 317 | 167 |
| &nbsp;&nbsp;&nbsp;Reorganization and restructuring charges | 2384 |  | 2384 |  |
| &nbsp;&nbsp;&nbsp;Other business development expense |  |  | 393 | 115 |
| &nbsp;&nbsp;&nbsp;Litigation expense | 2387 |  | 5921 |  |
| &nbsp;&nbsp;&nbsp;Impairment expense | 823 |  | 823 |  |
| &nbsp;&nbsp;&nbsp;Recovery of certain previously remitted state and local taxes |  |  |  | (896) |
| &nbsp;&nbsp;&nbsp;Cloud computing arrangement implementation expense | 150 | 156 | 618 | 260 |
| Adjusted EBITDA - non-GAAP | (27710) | (19633) | (108557) | (73831) |
| &nbsp;&nbsp;&nbsp;Non-operating expense, net | (1433) | (1912) | (7360) | (7028) |
| Net loss - non-GAAP | $(29143) | $(21545) | $(115917) | $(80859) |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| GAAP Total revenue | $34422 | $42455 | $127262 | $145085 |
| &nbsp;&nbsp; Collaboration revenue | (2) | (448) | (537) | (1128) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-GAAP Total revenue | $34420 | $42007 | $126725 | $143957 |
| GAAP Cost of revenue | $21122 | $20046 | $65475 | $68304 |
| &nbsp;&nbsp;Stock-based compensation | (744) | (469) | (2759) | (2125) |
| &nbsp;&nbsp;Depreciation and amortization | (774) | (183) | (1995) | (677) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-GAAP Cost of revenue | $19604 | $19394 | $60721 | $65502 |
| GAAP Gross margin | 39% | 53% | 49% | 53% |
| Non-GAAP Gross margin | 43% | 54% | 52% | 54% |
| GAAP Research and development | $19086 | $18162 | $70841 | $69504 |
| &nbsp;&nbsp;Stock-based compensation | (1563) | (1543) | (6867) | (6182) |
| &nbsp;&nbsp;Reorganization and restructuring charges | (881) |  | (881) |  |
| &nbsp;&nbsp;Depreciation and amortization | (1646) | (926) | (4125) | (3906) |
| &nbsp;&nbsp;Other business development activities |  |  |  | (115) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-GAAP Research and development | $14996 | $15693 | $58968 | $59301 |
| GAAP Selling, general and administrative | $36895 | $31596 | $143129 | $115503 |
| &nbsp;&nbsp;Stock-based compensation | (3957) | (4472) | (16282) | (21866) |
| &nbsp;&nbsp;Reorganization and restructuring charges | (1503) |  | (1503) |  |
| &nbsp;&nbsp;Depreciation and amortization | (545) | (415) | (1996) | (1288) |
| &nbsp;&nbsp;Other business development activities |  |  | (393) |  |
| &nbsp;&nbsp;Litigation expenses | (2387) |  | (5921) |  |
| &nbsp;&nbsp;Impairment expenses | (823) |  | (823) |  |
| &nbsp;&nbsp;Recovery of certain previously remitted state and local taxes |  |  |  | 896 |
| &nbsp;&nbsp;Cloud computing arrangements implementation expense | (150) | (156) | (618) | (260) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-GAAP Selling, general and administrative | $27530 | $26553 | $115593 | $92985 |

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