8-K
0001850906false00018509062022-03-022022-03-02

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 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): March 2, 2022

 

 

Singular Genomics Systems, Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware

001-40443

81-2948451

(State or other jurisdiction
of incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

10931 N. Torrey Pines Road, Suite #100
La Jolla, California 92037

 

(858) 333-7830
(Registrant’s address of principal executive offices

and telephone number, including area code)

 

N/A

(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:

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, par value $0.0001 per share

 

OMIC

 

Nasdaq Global Select 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 March 2, 2022, Singular Genomics Systems, Inc. (the “Company”) issued a press release regarding the Company’s financial results for the quarter and year ended December 31, 2021. A copy of the press release is attached as Exhibit 99.1 and incorporated herein by reference.

The information in this Item 2.02 and the press release attached as Exhibit 99.1 hereto shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall such information be deemed 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 filing.

 

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit

Number

 

Description

99.1

 

Press Release dated March 2, 2022

104

 

Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.




 

 


 

SIGNATURES

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

 

 

 

Singular Genomics Systems, Inc.

 

 

 

 

Dated:

March 2, 2022

By:

/s/ Dalen Meeter

 

 

 

Dalen Meeter
Senior Vice President, Finance
Principal Financial Officer and Principal Accounting Officer

 

 


EX-99.1

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Singular Genomics Systems, Inc. Reports Recent Highlights, Fourth Quarter and Full Year 2021 Financial Results

 

La Jolla, CA, March 2, 2022 – Singular Genomics Systems, Inc. (Nasdaq: OMIC), a company leveraging novel next-generation sequencing (NGS) and multiomics technologies to empower researchers and clinicians, today highlighted recent corporate achievements and reported financial results for the fourth quarter and full year ended December 31, 2021.

 

“We are pleased with the progression of the G4 launch. There has been robust engagement with potential customers, and we have accepted our initial orders as we track to begin shipping instruments in the second quarter. The production system performance metrics, technical report publication, and early access partner data continue to establish the G4 as the world’s most powerful benchtop sequencer,” said Drew Spaventa, Chairman and Chief Executive Officer. “The G4 delivers an industry-leading combination of power, speed, flexibility, and accuracy while providing major cost savings for all mid throughput applications. Furthermore, the G4’s data output rate extends into the high throughput range. We will offer competitive pricing down to sub $10 per Gb, expanding the benchtop market and offering a scalable, cost-effective solution to high-volume customers.”

 

Recent Highlights

Commenced G4 commercial launch, accepted initial orders, and remain on track to begin shipping G4 instruments and F2 flow cell kits in the second quarter of 2022.
Initiated G4 production unit assembly, completing the first production units for internal testing.
Published a technical report summarizing whole human genome sequencing data from the G4. The G4 produced sequencing data on par with current state-of-the-art NGS performance, with single-pass accuracy of ~99.8%, and uniform coverage of the high-confidence regions in the reference genome, evaluated at 20X, 30X, and 40X coverage.
Achieved targeted performance specifications at two additional EAP partner sites, further validating the G4 performance specifications across various applications and lab settings that represent target customers and markets.
o
Site 4, a government core lab, performed microbial genome sequencing, and achieved average read counts of 169 million per flow cell, >80% of bases ≥Q30, requiring 2x150 base paired read sequencing on a 300 cycle kit.
o
Site 5, a commercial CRO, performed liquid biopsy sequencing, and achieved average read counts of >200 million per flow cell, >80% of bases ≥Q30, requiring a 200 cycle kit.
Converted two of our EAP partners to orders, including the commercial testing companies Exact Sciences and Adaptive Biotechnologies.
Announced a partnership with Roche to validate its KAPA EvoPlus and HyperPrep library prep kits with the G4.
Announced a partnership with Agilent to validate its highly sensitive custom and catalog NGS Target Enrichment Products with the G4.
Announced a partnership with Qiagen to enable QIAseq kits for both DNA and RNA sample prep with the G4.
Announced Technology Access Program (TAP) for PX multi-omics platform in Fall 2022.
Added industry veteran and internationally recognized pioneering researcher in cancer genomics, Elaine Mardis, PhD. to our Board of Directors.
Launched our Scientific Advisory Board comprised of distinguished academic and industry experts to advise our product and service offerings and R&D pipeline.

 

 


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Fourth Quarter 2021 Financial Results

Operating expenses for the fourth quarter of 2021 totaled $19.7 million, compared to $7.6 million for the fourth quarter of 2020. Operating expenses for the fourth quarter of 2021 included non-cash stock-based compensation of $2.9 million. The year-over-year increase in operating expenses was driven primarily by headcount growth, investments to support the G4 commercial launch, continued investment in the PX development and R&D roadmap, and the costs associated with being a public company.

 

Net loss for the fourth quarter of 2021 was $19.8 million, or $0.27 per common share, compared to $7.9 million, or $0.73 per common share, for the fourth quarter of 2020.

 

Full Year 2021 Financial Results

Operating expenses for 2021 totaled $61.3 million, compared to $27.5 million in 2020. Operating expenses for 2021 included non-cash stock-based compensation of $9.2 million. The increase in operating expenses was driven primarily by headcount growth, investments to support the G4 commercial launch, continued investment in the PX development and our R&D roadmap, and the costs associated with being a public company.

 

Net loss for 2021 was $98.8 million, or $2.10 per common share, compared to $27.9 million, or $2.64 per common share, in 2020.

 

Cash, cash equivalents and short-term investments, excluding restricted cash, as of December 31, 2021 totaled approximately $339.2 million.

 

Webcast and Conference Call Details

Singular Genomics’ management team will host a conference call today, March 2, 2022, beginning at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time. Investors interested in listening to the conference call may do so by accessing a live and archived webcast of the event at www.singulargenomics.com, on the Investors page in the Presentations & Events section.

 

About Singular Genomics Systems, Inc.

Singular Genomics is a life science technology company that is leveraging novel, next generation sequencing (NGS) and multiomics technologies to build products that empower researchers and clinicians. Our mission is to accelerate genomics for the advancement of science and medicine. Our Singular Sequencing Engine is the foundational platform technology that forms the basis of our products as well as our core product tenets: power, speed, flexibility, and accuracy. We are currently developing two products that are purpose-built to target applications in which these core product tenets matter most. Our first product, the G4, targets the NGS market. Our second product in development, the PX, combines single cell analysis, spatial analysis, genomics, and proteomics in one integrated instrument to offer a versatile multiomics solution.

 

Forward-Looking Statements

Certain statements contained in this press release, other than historical information, constitute forward-looking statements within the meaning of the Federal securities laws. Forward-looking statements include, but are not limited to, statements regarding: (i) our ability to successfully ship and complete the development of the G4 and PX; (ii) our ability to meet our commercial launch and product delivery timelines and objectives; and (iii) our ability to achieve customer and scientific acceptance for the G4 and PX. Any such forward-looking statements are based on our management’s current expectations and are subject to a number of risks and uncertainties that could cause our actual future results to differ materially from our management’s current expectations or those implied by the forward-looking statements. These risks and uncertainties include, but are not limited to: (i) we have incurred significant losses since inception, we expect to incur significant losses in the future and we

 


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may not be able to generate sufficient revenue to achieve and maintain profitability; (ii) we have very little history commercializing our products or technology; (iii) the life sciences technology market is highly competitive, and if we fail to compete effectively, our business and operating results will suffer; (iv) if we are sued for infringing, misappropriating, or otherwise violating intellectual property rights of third parties, this litigation could be costly and time consuming and could prevent or delay us from developing or commercializing our product candidates; (v) if our products fail to achieve early customer and scientific acceptance, we may not be able to achieve broader market acceptance for our products, and our revenues and prospects may be harmed; and (vi) the COVID-19 pandemic and efforts to reduce its spread have adversely impacted, and may materially and adversely impact, our business and operations. These and other risk factors that may affect our future results of operations are identified and described in more detail in our most recent filings on Forms 10-K and 10-Q and in other filings that we make with the SEC from time to time, including our Quarterly Report on Form 10-Q for period ended September 30, 2021, filed with the SEC on November 9, 2021. Accordingly, you should not rely upon forward-looking statements as predictions of future events or our future performance. Except as required by applicable law, we undertake no obligation to update publicly or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances, or otherwise.

 

Investor Contact

Matt Clawson

949-370-8500

ir@singulargenomics.com

 

Media Contact

Dan Budwick, 1AB

973-271-6085

dan@1abmedia.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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SINGULAR GENOMICS SYSTEMS, INC.

Statements of Operations

(in thousands, except share and per share amounts)

(Unaudited)

 

 

Three Months Ended December 31,

 

 

Twelve Months Ended December 31,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Research and development

$

9,455

 

 

$

5,816

 

 

$

32,655

 

 

$

21,247

 

Selling, general and administrative

 

10,218

 

 

 

1,769

 

 

 

28,624

 

 

 

6,287

 

Total operating expenses

 

19,673

 

 

 

7,585

 

 

 

61,279

 

 

 

27,534

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

(19,673

)

 

 

(7,585

)

 

 

(61,279

)

 

 

(27,534

)

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

105

 

 

 

21

 

 

 

328

 

 

 

464

 

Interest expense

 

(192

)

 

 

(215

)

 

 

(846

)

 

 

(718

)

Change in fair value of convertible promissory notes

 

-

 

 

 

-

 

 

 

(35,199

)

 

 

-

 

Change in fair value of warrant liability

 

-

 

 

 

(149

)

 

 

(2,180

)

 

 

(198

)

Other income

 

1

 

 

 

17

 

 

 

405

 

 

 

41

 

Net loss

$

(19,759

)

 

$

(7,911

)

 

$

(98,771

)

 

$

(27,945

)

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share:

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted net loss per share

$

(0.27

)

 

$

(0.73

)

 

$

(2.10

)

 

$

(2.64

)

Weighted-average shares used to compute basic and diluted net loss per share

 

72,162,679

 

 

 

10,779,083

 

 

 

47,023,048

 

 

 

10,575,941

 

 

 

 


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SINGULAR GENOMICS SYSTEMS, INC.

Balance Sheets

(In thousands, except share and par value amounts)

(Unaudited)

 

 

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

201,049

 

 

$

11,688

 

Short-term investments

 

 

138,174

 

 

 

15,231

 

Prepaid expenses and other current assets

 

 

8,537

 

 

 

652

 

Total current assets

 

 

347,760

 

 

 

27,571

 

Property and equipment, net

 

 

6,072

 

 

 

2,368

 

Restricted cash

 

 

687

 

 

 

482

 

Other noncurrent assets

 

 

1,129

 

 

 

81

 

Total assets

 

$

355,648

 

 

$

30,502

 

 

 

 

 

 

 

 

Liabilities, Convertible Preferred Stock and Stockholders’ Equity (Deficit)

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

2,348

 

 

$

427

 

Accrued expenses

 

 

4,278

 

 

 

1,592

 

Current portion of long-term debt, net of issuance costs

 

 

-

 

 

 

926

 

Warrant liability

 

 

-

 

 

 

451

 

Other current liabilities

 

 

118

 

 

 

294

 

Total current liabilities

 

 

6,744

 

 

 

3,690

 

Long-term debt, net of issuance costs

 

 

9,904

 

 

 

8,469

 

Other noncurrent liabilities

 

 

2,827

 

 

 

714

 

Total liabilities

 

 

19,475

 

 

 

12,873

 

Commitments and contingencies

 

 

 

 

 

 

Convertible preferred stock, $0.0001 par value:

 

 

 

 

 

 

Series Seed, 6,520,790 shares authorized, 0 and 6,520,790 issued and outstanding at December 31, 2021 and December 31, 2020, respectively; liquidation preference of $0 and $4,499,998 at December 31, 2021 and December 31, 2020, respectively

 

 

-

 

 

 

4,486

 

Series A, 12,932,429 shares authorized, 0 and 12,932,429 issued and outstanding at December 31, 2021 and December 31, 2020, respectively; liquidation preference of $0 and $20,000,002 at December 31, 2021 and December 31, 2020, respectively

 

 

-

 

 

 

19,908

 

Series B, 19,566,903 shares authorized, 0 and 19,373,169 issued and outstanding at December 31, 2021 and December 31, 2020, respectively; liquidation preference of $0 and $44,999,997 at December 31, 2021 and December 31, 2020, respectively

 

 

-

 

 

 

44,790

 

Stockholders’ equity (deficit):

 

 

 

 

 

 

Common stock, $0.0001 par value; 400,000,000 and 60,272,685 shares authorized, 72,438,742 and 10,816,937 of shares outstanding at December 31, 2021 and December 31, 2020, respectively

 

 

7

 

 

 

1

 

Additional paid-in capital

 

 

488,200

 

 

 

1,552

 

Accumulated other comprehensive (loss) gain

 

 

(138

)

 

 

17

 

Accumulated deficit

 

 

(151,896

)

 

 

(53,125

)

Total stockholders’ equity (deficit)

 

 

336,173

 

 

 

(51,555

)

Total liabilities, convertible preferred stock and stockholders’ equity

 

$

355,648

 

 

$

30,502