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): November 5, 2020

 

Personalis, Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware

001-38943

27-5411038

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

 

 

 

1330 O’Brien Drive

Menlo Park, California 94025

 

94025

(Address of Principal Executive Offices)

 

 

(Zip Code)

(650) 752-1300

Registrant’s Telephone Number, Including Area Code

Not Applicable

(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 Instructions 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

 

PSNL

 

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 November 5, 2020, Personalis, Inc. issued a press release announcing its financial results for the quarter ended September 30, 2020. The full text of the press release is furnished as Exhibit 99.1 to this report on Form 8-K and is incorporated herein by reference.

The information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933 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 of Personalis, Inc., dated November 5, 2020

 

 


 

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 thereunto duly authorized.

 

Date: November 5, 2020

 

Personalis, Inc.

 

 

 

 

 

 

By:

/s/ Aaron Tachibana

 

 

 

Aaron Tachibana

 

 

 

Chief Financial Officer

 

 

psnl-ex991_6.htm

Exhibit 99.1

 

Personalis Reports Third Quarter 2020 Financial Results

MENLO PARK, Calif. – November 5, 2020 – Personalis, Inc. (Nasdaq: PSNL), a leader in advanced genomics for population sequencing and cancer, today reported financial results for the third quarter ended September 30, 2020.

 

Third Quarter Highlights

 

 

Reported record revenues of $19.8 million in the third quarter of 2020 versus $17.2 million in the third quarter of 2019, an increase of 15.5%

 

 

A total of 39 customers have placed orders for NeXT as of September 30, 2020, with 7 of those customers placing their first orders in the third quarter of 2020

 

 

Received a new task order with an approximate value of up to $31 million from U.S. Department of Veterans Affairs Million Veterans Program (VA MVP), increasing the contracted to date value to approximately $175 million

 

 

Achieved milestone of completing more than 90,000 whole human genomes sequenced under the VA MVP contract

 

 

Completed a follow-on public offering and sold 6.6 million shares of common stock at a price of $19.00 per share; received net proceeds of $117.1 million after discounts, fees, and expenses

 

“I’m proud to say that we were able to report record revenues once again this quarter, with our team delivering strong execution across both our population sequencing and biopharma businesses, despite the impact from the COVID-19 pandemic. We continued to see strong ordering levels from both our existing and new customers, and year-to-date, our biopharma orders were twice the amount compared with last year,” said John West, Chief Executive Officer. “In addition, we further strengthened our balance sheet by raising $117.1 million with an equity financing in the quarter.”

 

Third Quarter 2020 Financial Results

 

Revenues were $19.8 million in the three months ended September 30, 2020, up 15.5% from $17.2 million in the same period of the prior year.  In the third quarter, the VA MVP accounted for $14.1 million of the company’s total revenues, and the remaining $5.7 million was from biopharmaceutical and all other customers.

 

Gross margin was 26.9% for the three months ended September 30, 2020, compared with 32.8% in the same period of the prior year.

 

Operating expenses were $15.0 million for the three months ended September 30, 2020, compared with $11.4 million in the same period of the prior year.

 

Net loss was $9.5 million for the three months ended September 30, 2020 and net loss per share was $0.27 based on a weighted-average basic and diluted share count of 35.5 million, compared with a net loss of $6.9 million and a net loss

1

 


per share of $0.22 based on a weighted-average basic and diluted share count of 31.1 million in the same period of the prior year.

 

Cash, cash equivalents, and short-term investments were $206.1 million as of September 30, 2020.

 

 

Guidance and COVID-19


Due to continued uncertainty surrounding the COVID-19 pandemic, Personalis will not provide guidance for fiscal 2020 at this time.

 

 

Webcast and Conference Call Information


Personalis will host a conference call to discuss the third quarter financial results after market close on Thursday, November 5, 2020 at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time. The conference call can be accessed live over the phone (866) 220-8061 for U.S. callers or (470) 495-9168 for international callers, using conference ID: 9697771. The live webinar can be accessed at https://investors.personalis.com.

 

 

About Personalis, Inc.


Personalis, Inc. is a leader in population sequencing and cancer genomics company, with a focus on data, scale, efficiency and quality. Personalis operates one of the largest sequencing operations globally and is currently the sole sequencing provider to the VA MVP. In oncology, Personalis is transforming the development of next-generation therapies by providing more comprehensive molecular data about each patient’s cancer and immune response. The Personalis® ImmunoID NeXT Platform® is designed to adapt to the complex and evolving understanding of cancer, providing its biopharmaceutical customers with information on all of the approximately 20,000 human genes, together with the immune system, from a single tissue or blood sample. The Personalis Clinical Laboratory is GxP aligned as well as CLIA’88-certified and CAP-accredited. For more information, please visit www.personalis.com and follow Personalis on Twitter (@PersonalisInc).

 

 

Forward-Looking Statements


This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance.  Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “hope,” “intend,” “may,” “might,” “objective,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or similar expressions and the negatives of those terms.  Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.  These risks, uncertainties and other factors relate to, among others: the timing and pace of new orders from customers; the launch of new products and product features; the timing of tissue and blood sample receipts from customers, which can materially impact revenue quarter over quarter and year over year; whether orders for the NeXT platform and revenues from biopharmaceutical customers will increase; the success of Personalis’ collaborations and partnerships; the success of the company’s international expansion plans; the evolution of cancer therapies and market adoption of the company’s services; the company’s expectations regarding future performance; and the COVID-19 pandemic, which may significantly impact the company’s business and

2

 


operations and the business and operations of our customers.  In addition, other potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Quarterly Report on Form 10-Q for the period ended September 30, 2020, that will be filed following this earnings release.  All information provided in this release is as of the date of this press release, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date.  Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof.  Personalis undertakes no duty to update this information unless required by law.

 

 

 

Contacts:

 

Investor Relations Contact:

Caroline Corner

investors@personalis.com

415-202-5678

 

Media Contact:

Jennifer Havlek

pr@personalis.com

www.personalis.com

650-752-1300

 

 

 

 

 

3

 


PERSONALIS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except share and per share data)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenues

 

$

19,816

 

 

$

17,153

 

 

$

58,472

 

 

$

47,053

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of revenues

 

 

14,483

 

 

 

11,524

 

 

 

44,428

 

 

 

31,538

 

Research and development

 

 

7,193

 

 

 

5,303

 

 

 

20,048

 

 

 

15,045

 

Selling, general and administrative

 

 

7,793

 

 

 

6,056

 

 

 

22,772

 

 

 

15,692

 

Total costs and expenses

 

 

29,469

 

 

 

22,883

 

 

 

87,248

 

 

 

62,275

 

Loss from operations

 

 

(9,653

)

 

 

(5,730

)

 

 

(28,776

)

 

 

(15,222

)

Interest income

 

 

117

 

 

 

756

 

 

 

873

 

 

 

1,040

 

Interest expense

 

 

 

 

 

(204

)

 

 

(2

)

 

 

(1,133

)

Loss on debt extinguishment

 

 

 

 

 

(1,704

)

 

 

 

 

 

(1,704

)

Other (expense) income, net

 

 

(4

)

 

 

(2

)

 

 

5

 

 

 

(1,415

)

Loss before income taxes

 

 

(9,540

)

 

 

(6,884

)

 

 

(27,900

)

 

 

(18,434

)

Provision for income taxes

 

 

(5

)

 

 

(1

)

 

 

(39

)

 

 

(5

)

Net loss

 

$

(9,545

)

 

$

(6,885

)

 

$

(27,939

)

 

$

(18,439

)

Net loss per share, basic and diluted

 

$

(0.27

)

 

$

(0.22

)

 

$

(0.85

)

 

$

(1.35

)

Weighted-average shares outstanding, basic and diluted

 

 

35,460,092

 

 

 

31,133,683

 

 

 

32,845,583

 

 

 

13,613,444

 

 

4

 


PERSONALIS, INC.

SUPPLEMENTAL REVENUE INFORMATION (unaudited)

(in thousands)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

VA MVP

 

$

14,092

 

 

$

12,912

 

 

$

43,598

 

 

$

29,791

 

All other customers

 

 

5,724

 

 

 

4,241

 

 

 

14,874

 

 

 

17,262

 

Total

 

$

19,816

 

 

$

17,153

 

 

$

58,472

 

 

$

47,053

 

 

 


5

 


PERSONALIS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands, except share and per share data)

 

 

 

September 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

133,245

 

 

$

55,046

 

Short-term investments

 

 

72,818

 

 

 

73,243

 

Accounts receivable, net

 

 

5,903

 

 

 

3,300

 

Inventory and other deferred costs

 

 

6,268

 

 

 

4,606

 

Prepaid expenses and other current assets

 

 

5,359

 

 

 

3,383

 

Total current assets

 

 

223,593

 

 

 

139,578

 

Property and equipment, net

 

 

12,735

 

 

 

14,106

 

Operating lease right-of-use assets

 

 

10,632

 

 

 

1,845

 

Other long-term assets

 

 

1,852

 

 

 

1,762

 

Total assets

 

$

248,812

 

 

$

157,291

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

6,514

 

 

$

7,337

 

Accrued and other current liabilities

 

 

8,797

 

 

 

6,648

 

Contract liabilities

 

 

20,593

 

 

 

35,977

 

Total current liabilities

 

 

35,904

 

 

 

49,962

 

Long-term operating lease liabilities

 

 

8,897

 

 

 

639

 

Other long-term liabilities

 

 

471

 

 

 

 

Total liabilities

 

 

45,272

 

 

 

50,601

 

Commitments and Contingencies

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value — 10,000,000 shares authorized; none issued

 

 

 

 

 

 

Common stock, $0.0001 par value — 200,000,000 shares authorized; 38,790,189 and 31,243,029 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively

 

 

4

 

 

 

3

 

Additional paid-in capital

 

 

372,027

 

 

 

247,282

 

Accumulated other comprehensive income (loss)

 

 

37

 

 

 

(6

)

Accumulated deficit

 

 

(168,528

)

 

 

(140,589

)

Total stockholders’ equity

 

 

203,540

 

 

 

106,690

 

Total liabilities and stockholders’ equity

 

$

248,812

 

 

$

157,291