Personalis, Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>Personalis, Inc. has filed its 2023 10-K, detailing financial instruments, equity plans, and agreements.</b>

AI Summary

Personalis, Inc. (PSNL) filed a Annual Report (10-K) with the SEC on February 28, 2024. Personalis, Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The filing includes details on equity incentive plans, including the Two Thousand Eleven Equity Incentive Plan and the Two Thousand Nineteen Equity Incentive Plan. Key financial instruments discussed include warrants, common stock, and restricted stock units (RSUs). The company's financial reporting period covers three years, with specific data points for 2021, 2022, and 2023. Significant agreements mentioned include the Tempus Agreement and an At-Market Sales Agreement.

Why It Matters

For investors and stakeholders tracking Personalis, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Personalis, Inc.'s financial health, operational activities, and strategic agreements for the fiscal year 2023, crucial for investors assessing the company's performance and future prospects. The detailed breakdown of financial instruments, equity plans, and specific agreements like the Tempus Agreement offers insights into the company's capital structure, compensation strategies, and key business relationships.

Risk Assessment

Risk Level: medium — Personalis, Inc. shows moderate risk based on this filing. The filing is a standard 10-K annual report, which inherently contains a broad range of forward-looking statements and risk factors typical for a public company in the biotechnology sector, necessitating careful review by investors.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to understand Personalis, Inc.'s current financial position and potential challenges.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reported period)
• 2024-02-28 — Filing Date (Date the 10-K was filed)
• 2022-12-31 — Prior Fiscal Year End (Comparative financial data)
• 2021-01-01 — Start of Reporting Period (Beginning of the three-year reporting scope)

Key Players & Entities

• Personalis, Inc. (company) — Filer of the 10-K report
• Pfizer Inc. (company) — Mentioned in the context of customer concentration risk
• Tempus (company) — Associated with the Tempus Agreement and Tempus Warrants

FAQ

Risk Factors

• Customer Concentration Risk [medium — financial]: The company faces risk due to significant revenue concentration from a limited number of customers, including Pfizer Inc., as of December 31, 2023.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-28: Filing Date — Date Personalis, Inc. submitted its 10-K filing.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This filing provides the official annual financial and operational overview for Personalis, Inc.)

Restricted Stock Units (RSUs)

A form of equity compensation awarded to employees, which typically vests over time or upon meeting certain performance conditions. (RSUs are a key component of executive and employee compensation, detailed within the filing.)

Warrants

Securities that grant the holder the right, but not the obligation, to purchase a company's stock at a specified price within a certain timeframe. (Warrants, such as Tempus Warrants, represent potential future equity dilution and are important for understanding the company's capital structure.)

Key Financial Figures

• $0.0001 — ch registered Common Stock, par value $0.0001 PSNL The Nasdaq Global Market Sec

Filing Documents

• psnl-20231231.htm (10-K) — 3270KB
• psnl-ex10_4.htm (EX-10.4) — 225KB
• psnl-ex10_5.htm (EX-10.5) — 77KB
• psnl-ex10_6.htm (EX-10.6) — 85KB
• psnl-ex10_12.htm (EX-10.12) — 105KB
• psnl-ex10_13.htm (EX-10.13) — 88KB
• psnl-ex10_14.htm (EX-10.14) — 88KB
• psnl-ex10_15.htm (EX-10.15) — 90KB
• psnl-ex21_1.htm (EX-21.1) — 9KB
• psnl-ex23_1.htm (EX-23.1) — 3KB
• psnl-ex23_2.htm (EX-23.2) — 3KB
• psnl-ex31_1.htm (EX-31.1) — 14KB
• psnl-ex31_2.htm (EX-31.2) — 14KB
• psnl-ex32_1.htm (EX-32.1) — 8KB
• psnl-ex32_2.htm (EX-32.2) — 8KB
• psnl-ex97.htm (EX-97) — 51KB
• img80089866_0.jpg (GRAPHIC) — 8KB
• 0000950170-24-022097.txt (&nbsp;) — 13957KB
• psnl-20231231.xsd (EX-101.SCH) — 1788KB
• psnl-20231231_htm.xml (XML) — 2533KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 13 Item 1B. Unresolved Staff Comments 53 Item 1C. Cybersecurity 53 Item 2.

Properties

Properties 54 Item 3.

Legal Proceedings

Legal Proceedings 54 Item 4. Mine Safety Disclosures 54 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 55 Item 6. [Reserved] 55 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 56 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 64 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 65 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 94 Item 9A.

Controls and Procedures

Controls and Procedures 94 Item 9B. Other Information 94 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 94 PART III Item 10. Directors, Executive Officers and Corporate Governance 95 Item 11.

Executive Compensation

Executive Compensation 96 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 96 Item 13. Certain Relationships and Related Transactions, and Director Independence 96 Item 14. Principal Accountant Fees and Services 97 PART IV Item 15. Exhibits, Financial Statement Schedules 98 Item 16. Form 10-K Summary 100

Signatures

Signatures 101 2 Table of Contents NOTE REG ARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this Annual Report on Form 10-K, including statements regarding our future results of operations or financial condition, business strategy and plans, and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "objective," "ongoing," "plan," "potential," "predict," "project," "should," "will," or "would" or the negative of these words or other similar terms or expressions. These forward-looking statements include, but are not limited to, statements concerning the following: the evolution of cancer therapies and market adoption of our services and products; estimates of our total addressable market, future revenue and the timing thereof, expenses, use of cash and other resources, cost savings, capital requirements, and our needs for additional financing; future reimbursement and reimbursement rulings; our ability to enter into and compete in new markets; the impact our collaboration agreements and key opinion leaders may have on the broader use of our products in the future; the expected benefits of and activities to be performed under our Commercialization and Reference Laboratory Agreement with Tempus AI, Inc. (formerly known as Tempus Labs, Inc.); our ability to obtain financing when needed; the potential impacts of inflation, macroeconomic conditions, and geopolitical conflicts on our business and operations; the benefits of our products and services, including their ability to increase the probability of clinical trial success; our abilit

Bu siness

Item 1. Bu siness. Company Background Personalis develops and markets advanced cancer genomic tests and analytics. Our tests and analytics are used by pharmaceutical companies for translational research, biomarker discovery, the development of personalized cancer therapies, and we expect in the near future, for clinical trial enrollment. Our advanced tests are used by physicians to detect cancer recurrence, monitor cancer evolution, and uncover insights for therapy selection. We also provide sequencing and data analysis services to support population sequencing initiatives. We perform large-scale, high quality next-generation sequencing ("NGS") in our Clinical Laboratory Improvement Amendments of 1988 ("CLIA") certified and College of American Pathologists ("CAP") accredited 100,000 square foot laboratory located in Fremont, California. We were incorporated under the laws of the state of Delaware in 2011 under the name Personalis, Inc. and became a publicly-traded company in 2019. Products For pharmaceutical and biopharmaceutical companies NeXT Personal NeXT Personal is a tumor-informed liquid biopsy test for detection of minimal residual disease ("MRD") and recurrence in cancer. It delivers industry-leading, ultra-high analytical sensitivity, which we believe allows for detection of cancer earlier than other technologies. NeXT Personal answers the questions: Does the patient have MRD? What are the kinetics of circulating tumor DNA ("ctDNA")? ImmunoID NeXT ImmunoID NeXT is a tissue-based test that combines whole exome (DNA) and whole transcriptome (RNA) sequencing data with advanced analytics to provide a multi-dimensional view of the tumor and the tumor microenvironment from a single sample. It is designed to enable the development of more efficacious cancer immunotherapies and the next-generation of composite biomarkers to better predict patient response. ImmunoID NeXT answers the question: What are the composite biomarkers in the tumor and the t

View Full Filing

View this 10-K filing on SEC EDGAR