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Revenue and Geographic Area | 12 Months Ended
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Dec. 31, 2024
Revenue from Contract with Customer [Abstract] |
Revenue and Geographic Area | 4. Revenue and Geographic Area Disaggregation of Revenue by Product Type and Geographic Area The following tables present the Company's revenue for the years ended December 31, 2024, 2023, and 2022, respectively, based on product type and the geographic location of customers’ facilities (in thousands):
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Product revenue: |  |  |  |  |  |  |  |  |
Instruments |  | $ | 28,504 |  |  | $ | 37,459 |  |  | $ | 25,664 |
Consumables |  |  | 60,064 |  |  |  | 41,739 |  |  |  | 46,790 |
Total product revenue |  |  | 88,568 |  |  |  | 79,198 |  |  |  | 72,454 |
Service revenue: |  |  |  |  |  |  |  |  |
Lab services |  |  | 56,484 |  |  |  | 706 |  |  |  | 493 |
Field services |  |  | 24,649 |  |  |  | 25,274 |  |  |  | 23,219 |
Total service revenue |  |  | 81,133 |  |  |  | 25,980 |  |  |  | 23,712 |
Product and service revenue |  |  | 169,701 |  |  |  | 105,178 |  |  |  | 96,166 |
Collaboration and other revenue |  |  | 4,731 |  |  |  | 1,162 |  |  |  | 1,782 |
Total revenue |  | $ | 174,432 |  |  | $ | 106,340 |  |  | $ | 97,948 |
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Americas |  | $ | 93,462 |  |  | $ | 46,196 |  |  | $ | 43,982 |
Europe, Middle East and Africa (EMEA) |  |  | 52,319 |  |  |  | 36,201 |  |  |  | 33,136 |
Asia-Pacific |  |  | 28,651 |  |  |  | 23,943 |  |  |  | 20,830 |
Total revenue |  | $ | 174,432 |  |  | $ | 106,340 |  |  | $ | 97,948 |
Most of the Company's principal operations, other than manufacturing, are located in the United States. Revenue from customers in the United States represented $89.9 million, or 52%, of total revenues for the year ended December 31, 2024, $44.1 million, or 41%, of total revenues for the year ended December 31, 2023, and $41.0 million, or 42%, of total revenues for the year ended December 31, 2022. Refer to Note 16, Segment Reporting for additional information on revenue by reporting segment. Revenue from customers in China represented $11.8 million, or 7%, of total revenues for the year ended December 31, 2024, 15% of total revenues for the year ended December 31, 2023, and 11% of total revenues for the year ended December 31, 2022. With the exception of China in 2024, 2023, and 2022, no foreign country or jurisdiction had revenue in excess of 10% of the Company's total revenue during the years ended December 31, 2024, 2023, and 2022. One genomics customer accounted for 6%, 10%, and 11% of the Company's total revenue for the years ended December 31, 2024, 2023, and 2022, respectively, and 5% and 14% of outstanding net trade receivables at December 31, 2024 and 2023, respectively. No other customer represented more than 10% of the Company's total revenue for the fiscal years ended December 31, 2024, 2023, and 2022. Revenue from the Company's five largest customers represented 22% of total revenue for the year ended December 31, 2024, 24% of total revenue for the year ended December 31, 2023, and 19% of total revenue for the year ended December 31, 2022 Collaboration and License Agreements Illumina Cambridge, Ltd. In connection with the Merger, the Company assumed a multi-year arrangement with Illumina Cambridge, Ltd. ("Illumina"), originally entered into by SomaLogic and Illumina in December 2021 (the "Illumina Agreement"), to jointly develop and commercialize co-branded kits to combine Illumina's Next Generation Sequencing ("NGS") technology with SomaScan® technology (the "Co-Branded Kits"). Pursuant to the Illumina Agreement, SomaLogic received a non-refundable upfront payment of $30.0 million in January 2022. Subsequent to executing the Illumina Agreement, Illumina paid an additional $0.5 million to purchase the equipment, supplies and training necessary to run the SomaScan® assay at their facilities, representing a modification to the Illumina Agreement. As of the Closing Date, the Company determined that the transaction price of the Illumina Agreement was $30.5 million. Subsequent to commercialization of the Co-Branded Kits, the Company is entitled to receive $124.5 million of minimum guaranteed royalties through the term of the Illumina Agreement. No royalties were included in the Illumina transaction price as probability of commercialization had not been achieved as of the Closing Date. Subsequent to commercialization of the Co-Branded Kits, Illumina has the right to purchase SOMAmer reagents below SSP through the remaining term of the Illumina Agreement, which will continue for approximately 8 years following commercialization. Illumina's option to purchase SOMAmer reagents below SSP for this period represents a significant material right (the "Material Right"). As of the Closing Date, the Company allocated $30.4 million of the Illumina transaction price to the Material Right, which will be recognized as revenue as Illumina purchases SOMAmer reagents post commercialization. During the first quarter of 2024, the Company determined that commercialization of the Co-Branded Kits is probable due to the launch of an early-access program, and adjusted the transaction price to include $127.9 million of royalties expected to be received from 2025 through 2032. The Company allocated $0.4 million of the adjusted transaction price to satisfied performance obligations, and recognized that amount as revenue on a cumulative catch-up basis. The total transaction price of the Illumina Agreement as adjusted is $158.4 million. Substantially all of the transaction price is allocated to the Material Right, which the Company expects to recognize as revenue over an 8-year period from 2025 through 2032. NEC Corporation Additionally, in connection with the Merger, the Company assumed a joint development and commercialization agreement (the "JDCA") with NEC Solution Innovators, Ltd. ("NEC"), originally entered into by SomaLogic and NEC in March 2020, to develop and commercialize SomaScan® services in Japan. The JDCA is within the scope of ASC 808 as both companies are active participants and are exposed to significant rewards and risks dependent on commercial failure or success, and is accounted for by analogy to ASC 606. In connection with the Merger, the Company assumed certain contract liabilities and recorded $1.8 million of deferred revenue as of the Closing Date. Under the JDCA, the Company was entitled to receive $2.0 million in exchange for research and development services, which was received in April 2024. As of December 31, 2024, deferred revenue related to the JDCA was $0.8 million, which is expected to be fully recognized by March 31, 2025. New England Biolabs, Inc. Also in connection with the Merger, the Company assumed a non-exclusive licensing agreement with New England Biolabs, Inc. ("NEB"), originally entered into by SomaLogic and NEB in September 2022 (the "NEB Agreement"), whereby the Company provides a license to use certain proprietary information and know-how relating to SomaLogic's aptamer technology. Under the NEB Agreement, the Company is guaranteed fixed minimum royalties of $5.0 million to be received through September 2025. No revenue related to the guaranteed fixed minimum royalties will be recognized, as all revenue related to the receivable was recognized by SomaLogic prior to the Merger. Any revenue above the guaranteed fixed minimum royalties will be recognized in the period in which the subsequent sale or usage has occurred. As of December 31, 2024, royalties receivable related to this agreement were $4.7 million, included in accounts receivable within current assets on the consolidated balance sheets. Unfulfilled Performance Obligations A summary of the change in deferred revenue is as follows (in thousands):
|  | NEC |  |  | Illumina |  |  | Other |  |  | Total |
Deferred revenue at December 31, 2021 |  | $ | — |  |  | $ | — |  |  | $ | 17,913 |  |  | $ | 17,913 |
Recognition of revenue from beginning deferred revenue balances |  |  | — |  |  |  | — |  |  |  | (10,848 | ) |  |  | (10,848 | )
Revenue deferred during the period, net of revenue recognized |  |  | — |  |  |  | — |  |  |  | 7,543 |  |  |  | 7,543 |
Deferred revenue at December 31, 2022 |  |  | — |  |  |  | — |  |  |  | 14,608 |  |  |  | 14,608 |
Recognition of revenue from beginning deferred revenue balances |  |  | — |  |  |  | — |  |  |  | (10,565 | ) |  |  | (10,565 | )
Revenue deferred during the period, net of revenue recognized |  |  | — |  |  |  | — |  |  |  | 11,084 |  |  |  | 11,084 |
Deferred revenue at December 31, 2023 |  |  | — |  |  |  | — |  |  |  | 15,127 |  |  |  | 15,127 |
Deferred revenue assumed in business combinations |  |  | 1,773 |  |  |  | 30,418 |  |  |  | 2,417 |  |  |  | 34,608 |
Recognition of revenue from beginning or assumed deferred revenue balances |  |  | (1,510 | ) |  |  | (406 | ) |  |  | (12,667 | ) |  |  | (14,583 | )
Revenue deferred during the period, net of revenue recognized |  |  | 500 |  |  |  | — |  |  |  | 10,140 |  |  |  | 10,640 |
Deferred revenue at December 31, 2024 |  | $ | 763 |  |  | $ | 30,012 |  |  | $ | 15,017 |  |  | $ | 45,792 |
The Company expects to recognize revenue from unfulfilled performance obligations associated with service contracts that were partially completed as of December 31, 2024 in the following periods (in thousands):
Fiscal Year |  | Expected Revenue (1) |
2025 |  | $ | 10,763 |
2026 |  |  | 3,798 |
2027 |  |  | 1,329 |
Thereafter |  |  | 713 |
Total |  | $ | 16,603 |
(1) Expected revenue includes both billed amounts included in deferred revenue and unbilled amounts that are not reflected in the Company's consolidated financial statements and are subject to change if the Company's customers decide to cancel or modify their contracts. Purchase orders for instrument service contracts can generally be canceled before the service period begins. The Company also has unsatisfied performance obligations for service contracts with an expected term of one year or less not included in the amounts above. Long-lived Assets by Geographical Area The Company had long-lived assets consisting of property and equipment, net of accumulated depreciation, and operating lease ROU assets, net of accumulated amortization, in the following geographic areas for each year presented (in thousands):
|  | December 31, |
|  | 2024 |  |  | 2023 |
United States |  | $ | 51,794 |  |  | $ | 29,646 |
Singapore |  |  | 13,042 |  |  |  | 17,097 |
Canada |  |  | 4,837 |  |  |  | 6,231 |
Other Asia-Pacific |  |  | 1,101 |  |  |  | 889 |
EMEA |  |  | 610 |  |  |  | 987 |
Total |  | $ | 71,384 |  |  | $ | 54,850 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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