2023 Q4 Form 10-K Financial Statement

#000160183024000019 Filed on February 29, 2024

View on sec.gov

Income Statement

Concept 2023 Q4 2023 2022 Q4
Revenue $10.89M $44.58M $13.68M
YoY Change -20.36% 11.88% 439.91%
Cost Of Revenue $9.881M $42.59M $10.84M
YoY Change -8.85% -11.78%
Gross Profit $1.010M $1.988M $2.836M
YoY Change -64.39% -123.58%
Gross Profit Margin 9.27% 4.46% 20.74%
Selling, General & Admin $36.96M $134.0M $23.36M
YoY Change 58.24% 40.07% 9.04%
% of Gross Profit 3659.21% 6739.59% 823.55%
Research & Development $59.58M $241.2M $40.31M
YoY Change 47.81% 54.93% -12.36%
% of Gross Profit 5899.21% 12134.1% 1421.4%
Depreciation & Amortization $7.553M $24.40M $3.214M
YoY Change 135.0% 107.57% 43.74%
% of Gross Profit 747.82% 1227.46% 113.33%
Operating Expenses $99.94M $241.2M $63.82M
YoY Change 56.6% 54.93% -5.45%
Operating Profit -$98.93M -$350.1M -$60.98M
YoY Change 62.23% 42.46%
Interest Expense $4.496M $97.00K $3.669M
YoY Change 22.54% 76.36% -183550.0%
% of Operating Profit
Other Income/Expense, Net -$2.624M $17.93M -$179.0K
YoY Change 1365.92% 186.87% -717.24%
Pretax Income -$97.06M -$332.1M -$57.49M
YoY Change 68.82% 38.69% -11.46%
Income Tax -$4.062M -$4.062M
% Of Pretax Income
Net Earnings -$93.00M -$328.1M -$57.49M
YoY Change 61.75% 36.99% -11.46%
Net Earnings / Revenue -853.88% -735.99% -420.39%
Basic Earnings Per Share -$1.58
Diluted Earnings Per Share -$0.40 -$1.58 -$0.31
COMMON SHARES
Basic Shares Outstanding 207.9M shares
Diluted Shares Outstanding 207.9M shares

Balance Sheet

Concept 2023 Q4 2023 2022 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $391.6M $391.6M $549.9M
YoY Change -28.79% -28.79% 6.46%
Cash & Equivalents $391.6M $391.6M $549.9M
Short-Term Investments $0.00
Other Short-Term Assets $40.25M $43.48M $15.87M
YoY Change 153.62% 153.53% 111.19%
Inventory
Prepaid Expenses
Receivables $0.00
Other Receivables $3.094M $2.753M
Total Short-Term Assets $438.1M $438.1M $569.8M
YoY Change -23.11% -23.11% 6.56%
LONG-TERM ASSETS
Property, Plant & Equipment $86.51M $120.2M $88.19M
YoY Change -1.91% -1.05% 36.26%
Goodwill $52.06M $801.0K
YoY Change 6398.88% 0.0%
Intangibles $36.44M $1.306M
YoY Change 2690.43% -5.7%
Long-Term Investments
YoY Change
Other Assets $261.0K $6.890M $0.00
YoY Change -13.01% -100.0%
Total Long-Term Assets $215.6M $215.6M $131.5M
YoY Change 63.96% 63.96% 73.85%
TOTAL ASSETS
Total Short-Term Assets $438.1M $438.1M $569.8M
Total Long-Term Assets $215.6M $215.6M $131.5M
Total Assets $653.7M $653.7M $701.3M
YoY Change -6.79% -6.79% 14.9%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.953M $3.953M $4.586M
YoY Change -13.8% -13.8% 62.68%
Accrued Expenses $46.64M $52.75M $32.90M
YoY Change 41.73% 35.76% 1.77%
Deferred Revenue $36.43M $56.73M
YoY Change -35.79% 467.26%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $41.00K $41.00K $97.00K
YoY Change -57.73% -57.73% 7.78%
Total Short-Term Liabilities $93.17M $93.17M $100.3M
YoY Change -7.08% -7.08% 114.89%
LONG-TERM LIABILITIES
Long-Term Debt $1.101M $1.101M $536.0K
YoY Change 105.41% 105.41% -15.32%
Other Long-Term Liabilities $94.65M $94.65M $114.7M
YoY Change -17.46% -17.46% 470.1%
Total Long-Term Liabilities $95.75M $95.75M $115.2M
YoY Change -16.89% -16.89% 455.29%
TOTAL LIABILITIES
Total Short-Term Liabilities $93.17M $93.17M $100.3M
Total Long-Term Liabilities $95.75M $95.75M $115.2M
Total Liabilities $190.3M $190.3M $215.5M
YoY Change -11.7% -11.7% 219.67%
SHAREHOLDERS EQUITY
Retained Earnings -$967.6M -$639.6M
YoY Change 51.28% 59.87%
Common Stock $2.000K $2.000K
YoY Change 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $463.4M $463.4M $485.8M
YoY Change
Total Liabilities & Shareholders Equity $653.7M $653.7M $701.3M
YoY Change -6.79% -6.79% 14.9%

Cashflow Statement

Concept 2023 Q4 2023 2022 Q4
OPERATING ACTIVITIES
Net Income -$93.00M -$328.1M -$57.49M
YoY Change 61.75% 36.99% -11.46%
Depreciation, Depletion And Amortization $7.553M $24.40M $3.214M
YoY Change 135.0% 107.57% 43.74%
Cash From Operating Activities -$74.08M -$287.8M -$44.75M
YoY Change 65.54% 244.55% -26.83%
INVESTING ACTIVITIES
Capital Expenditures $2.067M $11.96M $7.979M
YoY Change -74.09% -67.74% -278.74%
Acquisitions -$1.844M
YoY Change
Other Investing Activities -$421.0K $1.727M $0.00
YoY Change -99.25% -100.0%
Cash From Investing Activities -$2.488M -$10.23M -$7.979M
YoY Change -68.82% -105.29% -84.73%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $128.1M
YoY Change -10.87%
Debt Paid & Issued, Net $766.0K
YoY Change 751.11%
Cash From Financing Activities 80.66M $140.1M 147.3M
YoY Change -45.23% -9.21% 3779.24%
NET CHANGE
Cash From Operating Activities -74.08M -$287.8M -44.75M
Cash From Investing Activities -2.488M -$10.23M -7.979M
Cash From Financing Activities 80.66M $140.1M 147.3M
Net Change In Cash 4.094M -$157.7M 94.53M
YoY Change -95.67% -159.78% -186.25%
FREE CASH FLOW
Cash From Operating Activities -$74.08M -$287.8M -$44.75M
Capital Expenditures $2.067M $11.96M $7.979M
Free Cash Flow -$76.14M -$299.7M -$52.73M
YoY Change 44.41% 148.57% -7.0%

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Description of the Business <div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Recursion Pharmaceuticals, Inc. (Recursion, the Company, we or our) was originally formed as a limited liability</span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">company on November 4, 2013 under the name Recursion Pharmaceuticals, LLC. In September 2016, the Company converted to a Delaware corporation and changed its name to Recursion Pharmaceuticals, Inc.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Recursion is a clinical stage TechBio company decoding biology to industrialize drug discovery. The Recursion Operating System (OS), a platform built across diverse technologies, enables the Company to map and navigate trillions of biological and chemical relationships within the Recursion Data Universe, one of the world’s largest proprietary biological and chemical datasets. The Company integrates physical and digital components as iterative loops of atoms and bits scaling wet lab biology and chemistry data organized into virtuous cycles with computational tools to rapidly translate </span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">in silico </span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">hypotheses into validated insights and novel chemistry. </span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:112%">As of December 31, 2023, the Company had an accumulated deficit of $967.6 million. The Company expects to incur substantial operating losses in future periods and will require additional capital to advance its drug candidates. The Company does not expect to generate significant revenue until the Company successfully completes significant drug development milestones with its subsidiaries or in collaboration with third parties, which the Company expects will take a number of years. In order to commercialize its drug candidates, the Company or its partners need to complete clinical development and comply with comprehensive regulatory requirements. The Company is subject to a number of risks and uncertainties similar to those of other companies of the same size within the biotechnology industry, such as the uncertainty of clinical trial outcomes, uncertainty of additional funding and a history of operating losses. </span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company has funded its operations to date primarily through the issuance of convertible preferred stock and the issuance of Class A common stock (see Note 8, “Common Stock” for additional details). Additionally, the Company has received payments from its strategic partnerships (see Note 9, “Collaborative Development Contracts” for additional details). Recursion will likely be required to raise additional capital. As of December 31, 2023, the Company did not have any unconditional outstanding commitments for additional funding. If the Company is unable to access additional funds when needed, it may not be able to continue the development of its products or the Company could be required to delay, scale back or abandon some or all of its development programs and other operations. The Company’s ability to access capital when needed is not assured and, if not achieved on a timely basis, could materially harm its business, financial condition and results of operations. </span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Recursion believes that the Company’s existing cash and cash equivalents will be sufficient to fund the Company’s operating expenses and capital expenditures for at least the next 12 months.</span></div>
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<div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates </span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires the Company to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ from those amounts. Significant estimates and assumptions include the estimated progress towards the satisfaction of performance obligations to record revenue, the valuation of goodwill and intangible assets, accrued research and development expenses and the fair value of stock-based awards issued.</span></div>
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<div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Concentration of Credit Risk </span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents. These financial instruments are primarily held at two U.S. financial institutions that management believes are of high credit quality. Recursion’s primary bank accounts significantly exceed the federally insured limits. </span></div>The Company is dependent on third-party suppliers for certain research and development activities including preclinical and clinical testing. In particular, the Company relies and expects to continue to rely on a small number of these suppliers. These activities could be adversely affected by a significant interruption to Recursion’s third-party suppliers including a delay in the Company’s preclinical and clinical testing and the supply of certain consumable products and compounds.
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Files In Submission

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