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Ginkgo Bioworks | ARS: Annual Report to Security Holders

SEC announcement ·  Apr 29 16:09
Summary by Moomoo AI
Ginkgo Bioworks Holdings, Inc. has completed its annual financial and operational performance review for the fiscal year ended December 31, 2023, as detailed in its Annual Report on Form 10-K. The company operates through two main segments: Cell Engineering, which generates revenue through R&D services, cell programming, and downstream value share such as milestones and royalties; and Biosecurity, which earns through biomonitoring and bioinformatic support services, though it saw a decrease in product revenue with the end of COVID-19 testing in schools. Ginkgo has formed strategic partnerships and holds equity positions in several ventures, applying equity method investments and fair value options for some. Despite reporting significant net losses, Ginkgo emphasizes its focus on long-term value. The company's stock...Show More
Ginkgo Bioworks Holdings, Inc. has completed its annual financial and operational performance review for the fiscal year ended December 31, 2023, as detailed in its Annual Report on Form 10-K. The company operates through two main segments: Cell Engineering, which generates revenue through R&D services, cell programming, and downstream value share such as milestones and royalties; and Biosecurity, which earns through biomonitoring and bioinformatic support services, though it saw a decrease in product revenue with the end of COVID-19 testing in schools. Ginkgo has formed strategic partnerships and holds equity positions in several ventures, applying equity method investments and fair value options for some. Despite reporting significant net losses, Ginkgo emphasizes its focus on long-term value. The company's stock price remains volatile, influenced by market conditions and company performance. Ginkgo's multi-class stock structure gives substantial voting power to employees and directors, which could impact stockholder influence and market price. The company also acknowledges risks including cybersecurity, regulatory compliance, intellectual property protection, and reliance on key personnel and third-party suppliers. Ginkgo's business metrics for Cell Engineering show growth in New Programs, Current Active Programs, and Cumulative Programs, suggesting potential for future revenue increases. The company recorded a loss from the Zymergen Bankruptcy, which led to the deconsolidation of Zymergen and the subsequent acquisition of certain Zymergen assets. Additionally, Ginkgo modified equity awards post-SRNG Business Combination, incurring significant stock-based compensation expenses. Revenue recognition for the company is complex, involving multiple performance obligations and significant partnerships that include non-cash consideration and equity method investments.

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