2025--12-31 false0001850902Q30001850902us-gaap:SalesRevenueNetMembertkno:DistributorCustomerAMemberus-gaap:CustomerConcentrationRiskMember2024-07-012024-09-300001850902us-gaap:CostOfSalesMember2024-01-012024-09-300001850902tkno:DirectSupplierAMembertkno:InventoryPurchasesMemberus-gaap:CustomerConcentrationRiskMember2025-07-012025-09-300001850902us-gaap:VehiclesMember2024-12-310001850902us-gaap:NonUsMember2025-01-012025-09-300001850902us-gaap:TradeNamesMember2025-09-300001850902tkno:ClinicalSolutionsMember2024-07-012024-09-300001850902tkno:OtherProductMember2024-01-012024-09-300001850902tkno:ClinicalSolutionsMember2025-01-012025-09-300001850902us-gaap:AccountsPayableMembertkno:DistributorCustomerAMemberus-gaap:CustomerConcentrationRiskMember2024-12-310001850902tkno:TwoThousandAndTwentyOneEmployeeStockPurchasePlanMember2025-01-012025-09-300001850902us-gaap:RestrictedStockUnitsRSUMember2025-01-012025-09-300001850902tkno:EmployeeStockOptionPlansMember2024-01-012024-09-300001850902us-gaap:AdditionalPaidInCapitalMember2024-07-012024-09-3000018509022024-06-062024-06-060001850902tkno:LabEssentialsMember2024-07-012024-09-300001850902us-gaap:RestrictedStockUnitsRSUMember2024-07-012024-09-300001850902us-gaap:RetainedEarningsMember2024-06-300001850902us-gaap:EmployeeStockOptionMember2025-01-012025-09-300001850902tkno:OtherProductMember2025-01-012025-09-300001850902us-gaap:RetainedEarningsMember2025-09-300001850902us-gaap:RestrictedStockUnitsRSUMember2024-12-310001850902us-gaap:EmployeeStockOptionMember2024-01-012024-09-300001850902us-gaap:MachineryAndEquipmentMember2024-12-310001850902country:US2025-01-012025-09-300001850902tkno:EmployeeStockOptionPlansMember2025-01-012025-09-300001850902us-gaap:AdditionalPaidInCapitalMember2025-01-012025-09-3000018509022025-07-312025-07-310001850902tkno:SecondAmendedAndRestatedCreditAgreementMembertkno:SofrFloorMember2025-03-032025-03-030001850902tkno:ReductionInForceMember2024-01-112024-01-110001850902tkno:DirectSupplierCMembertkno:InventoryPurchasesMemberus-gaap:CustomerConcentrationRiskMember2024-01-012024-09-300001850902us-gaap:AdditionalPaidInCapitalMember2023-12-310001850902tkno:EmployeeShareBasedAwardsMember2024-01-012024-09-300001850902us-gaap:CommonStockMember2025-06-300001850902tkno:DirectSupplierCMembertkno:InventoryPurchasesMemberus-gaap:CustomerConcentrationRiskMember2025-07-012025-09-300001850902us-gaap:VehiclesMember2025-09-300001850902us-gaap:RestrictedStockUnitsRSUMember2024-12-312024-12-3100018509022025-03-032025-03-0300018509022025-11-050001850902tkno:TheFacilityMember2025-03-0300018509022025-09-300001850902tkno:DirectSupplierAMembertkno:InventoryPurchasesMemberus-gaap:CustomerConcentrationRiskMember2025-01-012025-09-300001850902us-gaap:GeneralAndAdministrativeExpenseMember2024-07-012024-09-300001850902us-gaap:RetainedEarningsMember2023-12-310001850902tkno:AmendedRevolvingLoanMembersrt:MinimumMember2025-03-030001850902us-gaap:AdditionalPaidInCapitalMember2024-12-310001850902tkno:DirectSupplierCMembertkno:InventoryPurchasesMemberus-gaap:CustomerConcentrationRiskMember2024-07-012024-09-300001850902us-gaap:NonUsMember2024-01-012024-09-300001850902us-gaap:SellingAndMarketingExpenseMember2024-01-012024-09-300001850902us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-09-300001850902tkno:SeniorSecuredTermLoanMember2025-03-030001850902us-gaap:GeneralAndAdministrativeExpenseMember2024-01-012024-09-300001850902us-gaap:EmployeeStockOptionMember2024-07-012024-09-3000018509022025-03-030001850902tkno:EmployeeShareBasedAwardsMember2025-07-012025-09-300001850902us-gaap:CommonStockMember2024-06-3000018509022023-12-310001850902tkno:DirectSupplierBMembertkno:InventoryPurchasesMemberus-gaap:CustomerConcentrationRiskMember2025-01-012025-09-300001850902us-gaap:GeneralAndAdministrativeExpenseMember2025-07-012025-09-300001850902us-gaap:SalesRevenueNetMembertkno:DistributorCustomerAMemberus-gaap:CustomerConcentrationRiskMember2024-01-012024-09-300001850902us-gaap:WarrantMember2025-01-012025-09-300001850902us-gaap:RetainedEarningsMember2024-12-3100018509022024-06-3000018509022024-12-310001850902tkno:ClinicalSolutionsMember2024-01-012024-09-300001850902us-gaap:CommonStockMember2025-09-300001850902us-gaap:CommonStockMember2024-12-310001850902us-gaap:AdditionalPaidInCapitalMember2025-07-012025-09-300001850902country:US2025-07-012025-09-300001850902tkno:OtherProductMember2024-07-012024-09-300001850902us-gaap:RetainedEarningsMember2025-06-300001850902us-gaap:RetainedEarningsMember2025-07-012025-09-300001850902us-gaap:AdditionalPaidInCapitalMember2024-01-012024-09-300001850902us-gaap:CommonStockMember2024-01-012024-09-300001850902us-gaap:AdditionalPaidInCapitalMember2024-06-300001850902tkno:DirectSupplierCMembertkno:InventoryPurchasesMemberus-gaap:CustomerConcentrationRiskMember2025-01-012025-09-300001850902us-gaap:SalesRevenueNetMembertkno:DistributorCustomerAMemberus-gaap:CustomerConcentrationRiskMember2025-01-012025-09-300001850902tkno:OfficeFurnitureAndEquipmentMember2024-12-310001850902us-gaap:EmployeeStockOptionMember2024-12-310001850902tkno:SecondAmendedAndRestatedCreditAgreementMembertkno:TermLoanMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2025-03-032025-03-030001850902us-gaap:SellingAndMarketingExpenseMember2024-07-012024-09-300001850902tkno:LabEssentialsMember2025-07-012025-09-3000018509022025-07-012025-09-300001850902us-gaap:CustomerRelationshipsMember2025-09-300001850902tkno:EmployeeShareBasedAwardsMember2024-07-012024-09-300001850902tkno:RepricingOfOutstandingAndUnexercisedOptionsMember2024-03-142024-03-140001850902us-gaap:LeaseholdImprovementsMember2025-09-300001850902us-gaap:CostOfSalesMember2025-01-012025-09-300001850902us-gaap:RetainedEarningsMember2024-09-300001850902tkno:EmployeeStockOptionPlansMember2024-07-012024-09-300001850902tkno:TwoThousandAndTwentyOneEmployeeStockPurchasePlanMember2024-07-012024-09-300001850902tkno:LabEssentialsMember2024-01-012024-09-300001850902tkno:DistributorCustomerAMembertkno:InventoryPurchasesMemberus-gaap:CustomerConcentrationRiskMember2025-01-012025-09-3000018509022025-01-012025-09-300001850902tkno:SecondAmendedAndRestatedCreditAgreementMembersrt:MinimumMember2025-01-012025-12-310001850902tkno:ClinicalSolutionsMember2025-07-012025-09-300001850902tkno:SecondAmendedAndRestatedCreditAgreementMembertkno:RevolverMember2025-03-0300018509022024-07-012024-09-300001850902us-gaap:AdditionalPaidInCapitalMember2025-09-300001850902us-gaap:NonUsMember2024-07-012024-09-300001850902tkno:DistributorCustomerAMembertkno:InventoryPurchasesMemberus-gaap:CustomerConcentrationRiskMember2024-01-012024-09-300001850902tkno:AmendedCreditAgreementMember2025-03-032025-03-030001850902srt:MaximumMember2025-09-300001850902us-gaap:SellingAndMarketingExpenseMember2025-01-012025-09-3000018509022025-06-3000018509022024-01-012024-09-300001850902us-gaap:RetainedEarningsMember2024-01-012024-09-300001850902country:US2024-07-012024-09-300001850902us-gaap:WarrantMember2025-07-012025-09-300001850902us-gaap:NonUsMember2025-07-012025-09-300001850902us-gaap:EmployeeStockOptionMember2025-07-012025-09-300001850902tkno:LabEssentialsMember2025-01-012025-09-300001850902us-gaap:CommonStockMember2025-07-012025-09-300001850902us-gaap:EmployeeStockOptionMember2025-09-300001850902us-gaap:TradeNamesMember2024-12-310001850902us-gaap:LeaseholdImprovementsMember2024-12-310001850902us-gaap:ResearchAndDevelopmentExpenseMember2024-01-012024-09-300001850902us-gaap:ResearchAndDevelopmentExpenseMember2025-07-012025-09-300001850902tkno:OtherProductMember2025-07-012025-09-300001850902tkno:TwoThousandAndTwentyOneEmployeeStockPurchasePlanMember2025-07-012025-09-300001850902tkno:TwoThousandAndTwentyOneEmployeeStockPurchasePlanMember2024-01-012024-09-300001850902tkno:DistributorCustomerAMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2025-09-300001850902us-gaap:ResearchAndDevelopmentExpenseMember2024-07-012024-09-300001850902tkno:EmployeeStockOptionPlansMember2025-07-012025-09-300001850902srt:MinimumMember2025-09-300001850902tkno:OfficeFurnitureAndEquipmentMember2025-09-300001850902tkno:SecondAmendedAndRestatedCreditAgreementMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2025-03-032025-03-030001850902tkno:SecondAmendedAndRestatedCreditAgreementMember2025-03-032025-03-030001850902us-gaap:AccountsPayableMembertkno:DistributorCustomerAMemberus-gaap:CustomerConcentrationRiskMember2025-09-3000018509022024-09-300001850902tkno:TwoThousandAndTwentyOneEquityIncentivePlanMember2025-01-012025-09-300001850902tkno:TwoThousandAndTwentyOneEquityIncentivePlanMembertkno:EmployeeMember2025-01-012025-09-300001850902us-gaap:AdditionalPaidInCapitalMember2024-09-300001850902us-gaap:SalesRevenueNetMembertkno:DistributorCustomerAMemberus-gaap:CustomerConcentrationRiskMember2025-07-012025-09-300001850902tkno:DistributorCustomerAMembertkno:InventoryPurchasesMemberus-gaap:CustomerConcentrationRiskMember2024-07-012024-09-300001850902us-gaap:RetainedEarningsMember2024-07-012024-09-300001850902tkno:SecondAmendedAndRestatedCreditAgreementMember2025-03-030001850902us-gaap:CostOfSalesMember2024-07-012024-09-300001850902country:US2024-01-012024-09-300001850902us-gaap:EmployeeStockOptionMember2024-12-312024-12-310001850902us-gaap:CustomerRelationshipsMember2024-12-310001850902tkno:DistributorCustomerAMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2024-12-310001850902tkno:RepricingOfOutstandingAndUnexercisedOptionsMember2024-03-140001850902us-gaap:RestrictedStockUnitsRSUMember2025-09-300001850902us-gaap:WarrantMember2024-07-012024-09-300001850902us-gaap:CommonStockMember2023-12-310001850902us-gaap:CommonStockMember2024-09-300001850902us-gaap:ResearchAndDevelopmentExpenseMember2025-01-012025-09-300001850902us-gaap:GeneralAndAdministrativeExpenseMember2025-01-012025-09-300001850902us-gaap:RetainedEarningsMember2025-01-012025-09-300001850902us-gaap:CostOfSalesMember2025-07-012025-09-300001850902us-gaap:MachineryAndEquipmentMember2025-09-300001850902us-gaap:CommonStockMember2024-07-012024-09-300001850902tkno:DistributorCustomerAMembertkno:InventoryPurchasesMemberus-gaap:CustomerConcentrationRiskMember2025-07-012025-09-300001850902us-gaap:WarrantMember2024-01-012024-09-300001850902tkno:SecondAmendedAndRestatedCreditAgreementMembersrt:MinimumMember2025-03-030001850902us-gaap:AdditionalPaidInCapitalMember2025-06-300001850902us-gaap:SellingAndMarketingExpenseMember2025-07-012025-09-300001850902tkno:EmployeeShareBasedAwardsMember2025-01-012025-09-300001850902us-gaap:CommonStockMember2025-01-012025-09-30xbrli:pureiso4217:USDxbrli:sharesxbrli:sharestkno:Positionsiso4217:USD

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-40538

ALPHA TEKNOVA, INC.

(Exact name of registrant as specified in its charter)


Delaware	94-3368109
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
2451 Bert Dr. Hollister, CA	95023
(Address of principal executive offices)	(Zip Code)

(831) 637-1100

Registrant’s telephone number, including area code

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, par value $0.00001 per share

     TKNO

     The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 5, 2025, the registrant had 53,529,174 shares of common stock, $0.00001 par value per share, outstanding.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements relating to our financial condition, results of operations, plans, objectives, future performance and business, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “would,” “potential,” “likely,” or “continue” or the negative of these terms or other similar expressions. Forward-looking statements contained in this Quarterly Report on Form 10-Q may include, but are not limited to, statements about:

•

general economic, market or business conditions as well as those in the specific industry and markets in which our business operates which may impact customer demand for our products;

•

our ability to meet our publicly announced guidance or other expectations about our business;

•

our future financial performance, including our revenue, costs of revenue, and operating expenses;

•

our ability to grow profitability;

•

our ability to expand our operations and increase capacity;

•

our anticipated uses of cash in the short and long terms and the sufficiency of our sources of liquidity;

•

our ability to defend against claims and mitigate adverse results from any legal proceedings against us and the merits of any claims or suits against us;

•

our recent history of losses and our ability to continue as a going concern;

•

our ability to limit our accounts receivable and credit risk exposure;

•

our future investments, if any, in additional facilities to facilitate our expected growth;

•

our future uses of capital to pursue potential acquisitions, if any, that further or accelerate our strategy;

•

our future use of equity or debt financings to execute our business strategy;

•

our ability to take advantage of certain exemptions from various reporting requirements generally applicable to public companies;

•

our expectations regarding the period during which we qualify as an emerging growth company under the Jumpstart Our Business Startups Act of 2012 (the JOBS Act);

•

the impact of any pandemic, epidemic, or outbreak of infectious disease (including COVID-19), natural disasters, geopolitical unrest, war (including in Ukraine and the Israeli-Hamas war), terrorism, public health issues or other catastrophic events may have on our business and our ability to actively manage our response to these types of events;

•

our future adoption of critical accounting policies and estimates;

•

our ability to increase the scale and capacity of, or otherwise effectively adjust, our manufacturing processes and systems in response to market demands;

•

the impact of increased competition from additional companies entering the market and the availability of more advanced technologies in the market;

•

our ability to hire and retain key personnel;

•

our ability to obtain capital on favorable terms, or at all;

•

our ability to generate future revenue growth in market segments such as molecular diagnostics, synthetic biology, and emerging therapeutic modalities;

•

the impact of increased costs on our operations, including materials, labor, and general inflation;

•

our ability to use cash on hand to meet current and future financial obligations, including funding our operations, debt service requirements, and capital expenditures;

•

the enforceability of our exclusive forum provisions in our amended and restated certificate of incorporation;

•

our customers’ sensitivity to product nonconformances, defects, and errors;

•

the availability of exemption of our products from compliance with the U.S. Food, Drug and Cosmetic Act (FDCA);

•

our ability to secure and maintain a stable supply of raw materials in the future;

•

our ability to maintain a corporate culture that contributes to our success;

•

the marketability of our products across a wide range of markets and the probability of success or revenue opportunity in our target markets;

•

regulatory developments in the United States (U.S.) and other countries;

•

the impact of revenue recognition rules and other factors on our financial results;

•

our ability to obtain, maintain, and enforce intellectual property protection for our current and future products, including our ability to protect our trade secrets, trademarks, and trade names; and

•

the ongoing expenses associated with being a public company.

We caution you that the foregoing list may not contain all the forward-looking statements made in this Quarterly Report on Form 10-Q.

We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations, prospects, business strategy, and financial needs. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, assumptions, and other factors described in the section titled “Risk Factors” in Part I, Item 1A, of our Annual Report on Form 10-K filed with the SEC on March 7, 2025 (the 2024 Annual Report on Form 10-K) and elsewhere in this Quarterly Report on Form 10-Q. These risks are not exhaustive. Other sections of this Quarterly Report on Form 10-Q include additional factors that could adversely impact our business and financial performance. Furthermore, new risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. We cannot assure you that the results, events, and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions and are based upon information available to us as of the date of this Quarterly Report on Form 10-Q. Although we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to rely upon these statements unduly.

The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which such statements are made. We undertake no obligation to update any forward-looking statements after the date of this Quarterly Report on Form 10-Q or to conform such statements to actual results or revised expectations, except as required by law.

Unless the context otherwise requires, the terms “Teknova,” the “Company,” “we,” “us,” and “our” in this Quarterly Report on Form 10-Q refer to Alpha Teknova, Inc.

ALPHA TEKNOVA, INC.

Form 10-Q for the Quarter Ended September 30, 2025

INDEX


		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Condensed Financial Statements (Unaudited)	5
	Condensed Statements of Operations (Unaudited) for the Three and Nine Months Ended September 30, 2025 and 2024	5
	Condensed Balance Sheets (Unaudited) at September 30, 2025 and December 31, 2024	6
	Condensed Statements of Stockholders’ Equity (Unaudited) for the Three and Nine Months Ended September 30, 2025 and 2024	7
	Condensed Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 2025 and 2024	9
	Notes to Unaudited Condensed Financial Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	29
PART II.	OTHER INFORMATION	30
Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 3.	Defaults Upon Senior Securities	32
Item 4.	Mine Safety Disclosures	32
Item 5.	Other Information	32
Item 6.	Exhibits	32
Signatures		34

PART I – FINANCIAL INFORMATION

Item 1. Condensed Financial Statements

ALPHA TEKNOVA, INC.

Condensed Statements of Operations

(Unaudited)

(in thousands, except share and per share data)


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2025			2024			2025			2024
Revenue	$	10,454		$	9,576		$	30,536		$	28,480
Cost of sales		7,248			9,486			20,339			23,377
Gross profit		3,206			90			10,197			5,103
Operating expenses:
Research and development		542			627			1,675			2,165
Sales and marketing		1,747			1,640			4,960			4,763
General and administrative		4,647			4,968			15,068			17,832
Amortization of intangible assets		287			287			861			861
Total operating expenses		7,223			7,522			22,564			25,621
Loss from operations		(4,017	)		(7,432	)		(12,367	)		(20,518	)
Other expenses, net
Interest expense, net		(190	)		(141	)		(499	)		(558	)
Other adjustment to loan exit fee		—			—			485			—
Total other expenses, net		(190	)		(141	)		(14	)		(558	)
Loss before income taxes		(4,207	)		(7,573	)		(12,381	)		(21,076	)
Provision for (benefit from) income taxes		79			(8	)		120			(50	)
Net loss	$	(4,286	)	$	(7,565	)	$	(12,501	)	$	(21,026	)
Net loss per share—basic and diluted	$	(0.08	)	$	(0.15	)	$	(0.23	)	$	(0.47	)
Weighted average shares used in computing net loss per share—basic and diluted		53,516,986			51,821,395			53,462,768			44,520,132

The accompanying notes are an integral part of these condensed financial statements.

ALPHA TEKNOVA, INC.

Condensed Balance Sheets

(Unaudited)

(in thousands, except share and per share data)


	As of September 30, 2025			As of December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	3,204		$	3,708
Short-term investments, held -to-maturity		18,912			26,688
Accounts receivable, net of allowance for credit losses of $48 and $83 as of September 30, 2025 and December 31, 2024, respectively		5,135			4,312
Inventories, net		6,914			6,801
Prepaid expenses and other current assets		2,398			1,267
Total current assets		36,563			42,776
Property, plant, and equipment, net		42,623			45,753
Operating right-of-use lease assets		14,894			15,767
Intangible assets, net		12,230			13,091
Other non-current assets		1,315			1,382
Total assets	$	107,625		$	118,769
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,084		$	825
Accrued liabilities		3,966			4,541
Current portion of operating lease liabilities		1,886			1,800
Current portion of long-term debt		—			4,045
Total current liabilities		6,936			11,211
Deferred tax liabilities		946			827
Other accrued liabilities		—			10
Long-term debt, net		13,076			9,443
Long-term operating lease liabilities		14,017			14,884
Total liabilities		34,975			36,375
Commitments and contingencies (Note 16)
Stockholders’ equity:
Preferred stock, $0.00001 par value, 10,000,000 shares authorized at September 30, 2025 and December 31, 2024, respectively, zero shares issued and outstanding at September 30, 2025 and December 31, 2024		—			—
Common stock, $0.00001 par value, 490,000,000 shares authorized at September 30, 2025 and December 31, 2024, 53,524,460 and 53,409,727 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively		1			1
Additional paid-in capital		203,681			200,924
Accumulated deficit		(131,032	)		(118,531	)
Total stockholders’ equity		72,650			82,394
Total liabilities and stockholders’ equity	$	107,625		$	118,769

The accompanying notes are an integral part of these condensed financial statements.

ALPHA TEKNOVA, INC.

Condensed Statements of Stockholders’ Equity

(in thousands, except share data)

(Unaudited)


	Common Stock				Additional Paid-in		Accumulated			Stockholders’
	Shares		Amount		Capital		Deficit			Equity
Balance at July 1, 2025		53,514,288	$	1	$	202,802	$	(126,746	)	$	76,057
Stock-based compensation		—		—		850		—			850
Issuance of common stock upon exercise of stock options		10,172		—		29		—			29
Net loss		—		—		—		(4,286	)		(4,286	)
Balance at September 30, 2025		53,524,460	$	1	$	203,681	$	(131,032	)	$	72,650


	Common Stock				Additional Paid-in		Accumulated			Stockholders’
	Shares		Amount		Capital		Deficit			Equity
Balance at July 1, 2024		40,915,331	$	—	$	184,175	$	(105,247	)	$	78,928
Equity financing, net of issuance costs		12,385,883		1		15,140		—			15,141
Stock-based compensation		—		—		760		—			760
Issuance of common stock upon exercise of stock options		1,779		—		4		—			4
Net loss		—		—		—		(7,565	)		(7,565	)
Balance at September 30, 2024		53,302,993	$	1	$	200,079	$	(112,812	)	$	87,268

The accompanying notes are an integral part of these condensed financial statements.

ALPHA TEKNOVA, INC.

Condensed Statements of Stockholders’ Equity

(in thousands, except share data)

(Unaudited)


	Common Stock				Additional Paid-in		Accumulated			Stockholders’
	Shares		Amount		Capital		Deficit			Equity
Balance at January 1, 2025		53,409,727	$	1	$	200,924	$	(118,531	)	$	82,394
Stock-based compensation		—		—		2,652		—			2,652
Issuance of common stock upon exercise of stock options		20,677		—		49		—			49
Vesting of restricted stock units		82,538		—		—		—			—
Issuance of common stock under employee stock purchase plan		11,518		—		56		—			56
Net loss		—		—		—		(12,501	)		(12,501	)
Balance at September 30, 2025		53,524,460	$	1	$	203,681	$	(131,032	)	$	72,650


	Common Stock				Additional Paid-in		Accumulated			Stockholders’
	Shares		Amount		Capital		Deficit			Equity
Balance at January 1, 2024		40,793,848	$	—	$	181,822	$	(91,786	)	$	90,036
Equity financing, net of issuance costs		12,385,883		1		15,140		—			15,141
Issuance of common stock warrants		—		—		132		—			132
Stock-based compensation		—		—		2,900		—			2,900
Issuance of common stock upon exercise of stock options		1,779		—		4		—			4
Vesting of restricted stock units		67,169		—		—		—			—
Issuance of common stock under employee stock purchase plan		54,314		—		81		—			81
Net loss		—		—		—		(21,026	)		(21,026	)
Balance at September 30, 2024		53,302,993	$	1	$	200,079	$	(112,812	)	$	87,268

The accompanying notes are an integral part of these condensed financial statements.

ALPHA TEKNOVA, INC.

Condensed Statements of Cash Flows

(Unaudited)

(in thousands)


	For the Nine Months Ended September 30,
	2025			2024
Operating activities:
Net loss	$	(12,501	)	$	(21,026	)
Adjustments to reconcile net loss to net cash used in operating activities:
Bad debt expense		71			61
Inventory reserve		1,657			4,235
Depreciation and amortization		4,761			4,933
Stock-based compensation		2,652			2,900
Deferred taxes		119			(52	)
Accrued interest income on short-term investments		(8	)		(118	)
Amortization of discount on short-term investments		(508	)		—
Amortization of debt financing costs		173			291
Other adjustment to loan exit fee		(485	)		—
Non-cash lease expense		92			140
Loss on disposal of property, plant, and equipment		19			49
Changes in operating assets and liabilities:
Accounts receivable		(894	)		(718	)
Inventories		(1,770	)		(315	)
Prepaid expenses and other current assets		(1,464	)		(943	)
Other non-current assets		67			334
Accounts payable		244			(430	)
Accrued liabilities		(399	)		(724	)
Other		(10	)		(72	)
Cash used in operating activities		(8,184	)		(11,455	)
Investing activities:
Purchases of short-term investments		(13,708	)		(25,428	)
Maturities of short-term investments		22,000			—
Proceeds from sale of property, plant, and equipment		—			125
Purchases of property, plant, and equipment		(800	)		(558	)
Cash provided by (used in) investing activities		7,492			(25,861	)
Financing activities:
Proceeds from equity financing, net		—			15,104
Proceeds from long-term debt		1,110			—
Payment of exit fee costs		(1,110	)		—
Proceeds from financed insurance premiums		333			385
Repayment of financed insurance premiums		(150	)		(572	)
Proceeds from exercise of stock options		49			4
Proceeds from issuance of common stock under employee stock purchase plan		56			81
Payment of debt issuance costs		(100	)		(25	)
Cash provided by financing activities		188			14,977
Change in cash and cash equivalents		(504	)		(22,339	)
Cash and cash equivalents at beginning of period		3,708			28,484
Cash and cash equivalents at end of period	$	3,204		$	6,145
Supplemental cash flow disclosures:
Income taxes paid	$	44		$	41
Interest paid, net of amounts capitalized	$	1,098		$	1,178
Offering costs included in accounts payable and accrued liabilities	$	—		$	18
Capitalized property, plant, and equipment included in accounts payable and accrued liabilities	$	93		$	90
Issuance of common stock warrants	$	—		$	132
Recognition of operating right-of-use lease asset	$	564		$	1,293
Recognition of operating lease liabilities	$	564		$	1,306

The accompanying notes are an integral part of these condensed financial statements.

ALPHA TEKNOVA, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

(Unaudited)

Note 1. Nature of the Business

Teknova produces critical reagents for the discovery, development, and commercialization of novel therapies, vaccines, and molecular diagnostics. Our product offerings include pre-poured media plates for cell growth and cloning; liquid cell culture media and supplements for cellular expansion; and molecular biology reagents for sample manipulation, resuspension, and purification. Teknova supports customers spanning the life sciences market, including pharmaceutical and biotechnology companies, contract development and manufacturing organizations, in vitro diagnostic franchises, and academic and government research institutions, with catalog and custom, made-to-order products.

Teknova manufactures its products at its Hollister, California, headquarters and stocks inventory of raw materials, components, and finished goods at that location. The Company ships products directly from its warehouse in Hollister to its customers and distributors.

Note 2. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Accounting, Presentation and Use of Estimates

The accompanying unaudited condensed interim financial statements and related notes have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with such rules and regulations.

The unaudited condensed financial statements have been prepared on a basis consistent with the audited annual financial statements as of and for the year ended December 31, 2024, and, in the opinion of management, reflect all adjustments, consisting solely of normal recurring adjustments, necessary for the fair presentation of the results for the interim periods presented. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain amounts of assets, liabilities, revenue, expenses, and related disclosures at the date of the financial statements and during the reporting period. Actual results may differ from those estimates.

These unaudited condensed financial statements should be read in conjunction with the Company’s audited financial statements and the related notes thereto as of and for the year ended December 31, 2024, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 7, 2025 (the 2024 Annual Report on Form 10-K). Refer to “Notes to Financial Statements—Note 2. Summary of Significant Accounting Policies,” within the 2024 Annual Report on Form 10-K for a full list of the Company’s significant accounting policies. The information in those notes has not changed except as a result of normal adjustments in the interim periods.

Reduction in Workforce

On January 11, 2024, the Company carried out a reduction in workforce of approximately 35 positions, aimed at reducing operating expenses. The Company incurred $1.3 million of costs in connection with the reduction in workforce related to severance pay and other termination benefits. The costs associated with the reduction in workforce were recorded in the quarter ended March 31, 2024, in general and administrative expenses.

Accounting Pronouncements Not Yet Adopted

In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disclosure in the rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciliation items in some categories if the items meet a quantitative threshold. The guidance also requires disclosure of income taxes paid, net of refunds, disaggregated by federal (national), state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold. The guidance is effective for fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of this standard on the Company’s disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40), which requires disaggregation of specific expense categories in the notes to the financial statements and a qualitative description of the remaining expense amounts not separately disaggregated. This standard is

effective for annual reporting periods beginning after December 15, 2026, and requires prospective application with the option to apply it retrospectively. The Company is currently evaluating the impact of this standard on the Company’s disclosures.

In July 2025, the FASB issued ASU 2025-05, amending Accounting Standards Codification (ASC) 326, Financial Instruments-Credit Losses, to provide an optional practical expedient when applying the guidance related to the estimation of expected credit losses for current accounts receivable and current contract assets resulting from transactions arising from contracts with customers. Under this practical expedient, entities may elect to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset. The guidance is effective for fiscal years beginning after December 15, 2025, and interim reporting periods, with early adoption permitted. The Company is currently evaluating the impact of this standard on the Company’s financial statements.

In September 2025, the FASB issued ASU 2025-06, that clarifies and modernizes the accounting for costs related to internal-use software in ASC 350-40, Intangibles-Goodwill and Other-Internal-Use Software. The guidance removes all references to project stages in ASC 350-40 and clarifies the threshold entities apply to begin capitalizing costs. Additionally, the guidance specifies disclosure requirements for capitalized software costs accounted for under ASC 350-40, regardless of how those costs are presented in the financial statements. The guidance is effective for fiscal years beginning after December 15, 2027, and interim reporting periods, with early adoption permitted. The Company is currently evaluating the impact of this standard on the Company’s financial statements.

Note 3. Segment Reporting

Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (CODM) in deciding how to allocate resources to an individual segment and in assessing performance. Teknova’s CODM is its Chief Executive Officer, currently Stephen Gunstream. Teknova derives revenue primarily in the United States through manufacture and sale of critical reagents. Teknova has determined that it operates in one reporting unit, one operating segment, and one reportable segment, as the CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance.

The CODM assesses performance and decides how to allocate resources and make operating decisions based on net loss that is reported on the statement of operations. Net loss is also used to monitor budget versus actual results. The measure of segment assets is reported on the balance sheet as total assets. Revenues, expenses, and assets requiring disclosure in accordance with ASC 280, Segment Reporting, are also included in the accompanying financial statements. See the statements of operations for the three and nine months ended September 30, 2025 and 2024 and the balance sheets as of September 30, 2025 and December 31, 2024, for details.

Note 4. Revenue Recognition

Teknova recognizes revenue from the sale of manufactured products and services when the Company transfers control of promised goods or services to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Control is transferred when the customer has the ability to direct the use of and obtain benefits from the goods or services. The majority of the Company’s sales agreements contain performance obligations satisfied at a point in time when control is transferred to the customer.

Teknova’s revenue, disaggregated by product category, was as follows (in thousands):


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2025		2024		2025		2024
Lab Essentials	$	8,308	$	7,161	$	24,217	$	22,065
Clinical Solutions		1,706		1,964		4,928		5,247
Other		440		451		1,391		1,168
Total revenue	$	10,454	$	9,576	$	30,536	$	28,480

Teknova’s revenue, disaggregated by geographic region, was as follows (in thousands):


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2025		2024		2025		2024
United States	$	9,832	$	9,057	$	28,881	$	27,155
International		622		519		1,655		1,325
Total revenue	$	10,454	$	9,576	$	30,536	$	28,480

Note 5. Concentrations of Risk

Customers

Customers that accounted for 10% or more of the Company’s revenues and outstanding balance of accounts receivable were as follows:


	For the Three Months Ended September 30,		For the Nine Months Ended September 30,		As of	As of
	2025	2024	2025	2024	September 30, 2025	December 31, 2024
Distributor customer A	24%	19%	23%	18%	20%	17%

The Company’s customers that are distributors, as opposed to direct customers, represent highly diversified customer bases.

Suppliers

Suppliers that accounted for 10% or more of the Company’s inventory purchases and outstanding balance of accounts payable were as follows:


	For the Three Months Ended September 30,		For the Nine Months Ended September 30,		As of	As of
	2025	2024	2025	2024	September 30, 2025	December 31, 2024
Distributor supplier A	32%	37%	30%	37%	23%	18%
Direct supplier A	20%	*	22%	*	*	*
Direct supplier B	*	*	10%	*	*	*
Direct supplier C	23%	10%	12%	12%	*	*

* Represents less than 10%.

The Company’s suppliers that are distributors, as opposed to direct suppliers, represent highly diversified supplier bases.

Note 6. Short-term Held-to-Maturity Investments

The Company invests excess cash balances in short-term U.S. Treasuries. Investments are classified based on the facts and circumstances present at the time of purchase. The appropriateness of that classification is subsequently reassessed at each reporting date. As of September 30, 2025, the Company has both the ability and intention to hold these investments until maturity and therefore has classified these investments as held-to-maturity and recorded them at amortized cost which approximates fair value and presented them in “Short-term investments, held -to-maturity” on the balance sheet. The fair value of the Company's short-term investments was based on quoted prices in active markets for these investments (Level 1). The income recognized for these investments was recorded within interest income on the statement of operations.

Note 7. Inventories, Net

Inventories consisted of the following (in thousands):


	As of September 30, 2025		As of December 31, 2024
Finished goods, net	$	4,158	$	4,672
Work in process		112		24
Raw materials, net		2,644		2,105
Total inventories, net	$	6,914	$	6,801

Note 8. Property, Plant, and Equipment, Net

Property, plant, and equipment consisted of the following (in thousands):


	As of September 30, 2025			As of December 31, 2024
Machinery and equipment	$	30,012		$	29,765
Office furniture and equipment		892			922
Vehicles		333			340
Leasehold improvements		24,843			24,346
		56,080			55,373
Less—Accumulated depreciation		(16,078	)		(12,244	)
		40,002			43,129
Construction in progress		2,621			2,624
Total property, plant, and equipment, net	$	42,623		$	45,753

For the three and nine months ended September 30, 2025, depreciation expense was $1.3 million and $3.9 million, respectively, and for the three and nine months ended September 30, 2024, depreciation expense was $1.4 million and $4.1 million, respectively.

Note 9. Leases

The Company leases office space, warehouse and manufacturing space, and equipment. The Company’s lease agreements have remaining lease terms of one year to 12 years, and some of these leases have renewal and termination options exercisable at the Company’s election. Terms and conditions to extend or terminate such leases are recognized as part of the right-of-use assets and lease liabilities where reasonably certain to be exercised. All of the Company’s leases are operating leases.

The components of lease expense and other information related to leases were as follows (in thousands):


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2025		2024		2025		2024
Operating lease expense	$	685	$	745	$	2,053	$	2,236
Variable lease expense		113		109		340		326
Total lease expense	$	798	$	854	$	2,393	$	2,562

Cash paid for amounts included in the measurement of the lease liabilities was $0.6 million and $1.9 million for the three and nine months ended September 30, 2025, respectively, and cash paid for amounts included in the measurement of the lease liabilities was $0.7 million and $2.1 million for the three and nine months ended September 30, 2024, respectively. The weighted-average discount rate was 5.0% and the weighted-average remaining lease term was 7.4 years as of September 30, 2025.

Maturities of operating lease liabilities at September 30, 2025 were as follows (in thousands):


	Amount
Remainder of 2025	$	745
2026		2,649
2027		2,714
2028		2,770
2029		2,770
Thereafter		7,788
Total lease payments		19,436
Less: imputed interest		(3,533	)
Present value of lease liabilities		15,903
Less: current portion		(1,886	)
Lease liabilities less current portion	$	14,017

Note 10. Intangible Assets, Net

The following is a summary of intangible assets with definite and indefinite lives (in thousands):


	Balance at September 30, 2025						Balance at December 31, 2024
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Definite Lived:
Customer relationships	$	9,180	$	7,700	$	1,480	$	9,180	$	6,839	$	2,341
Indefinite Lived:
Tradename		10,750		—		10,750		10,750		—		10,750
Total intangible assets	$	19,930	$	7,700	$	12,230	$	19,930	$	6,839	$	13,091

For each of the three months ended September 30, 2025 and 2024, amortization expense was $0.3 million and for each of the nine months ended September 30, 2025 and 2024, amortization expense was $0.9 million.

As of September 30, 2025, the remaining weighted-average useful life of definite lived intangible assets was 1.3 years. The estimated future amortization expense of intangible assets with definite lives was as follows (in thousands):


	Amount
Remainder of 2025	$	287
2026		1,148
2027		45
Estimated future amortization expense of definite-lived intangible assets	$	1,480

Note 11. Accrued Liabilities

Accrued liabilities were comprised of the following (in thousands):


	As of September 30, 2025		As of December 31, 2024
Payroll-related	$	2,742	$	3,041
Property, plant, and equipment		63		89
Deferred revenue		3		30
Insurance premiums and accrued interest		240		56
Loss contingency accrual		—		373
Other		918		952
Total current accrued liabilities	$	3,966	$	4,541

On July 31, 2025, the Company entered into a financing agreement with First Insurance Funding for the financing of the Company's D&O liability insurance and related policies. Under the terms of the financing agreement, the Company will pay a total of $0.5 million in premiums, taxes, and fees, plus interest at an annual percentage rate of 7.49% in eight monthly installment payments that commenced on August 1, 2025. During the three months ended September 30, 2025, the Company made a down payment on the policy of $0.2 million to the insurer and two monthly installments for an aggregate of $0.1 million to First Insurance Funding. As of September 30, 2025, the Company owed $0.2 million for insurance premiums and accrued interest.

Note 12. Long-term Debt, Net

On March 3, 2025, the Company entered into the Second Amended and Restated Credit and Security Agreement (Term Loan) as borrower, with MidCap Financial Trust (MidCap), as agent and lender, and the additional lenders from time to time party thereto (the Second Amended and Restated Term Loan Credit Agreement) and the Second Amended and Restated Credit and Security Agreement (Revolving Loan) as borrower, with MidCap as agent and lender, and the additional lenders from time to time party thereto (the Second Amended and Restated Revolving Loan Credit Agreement, together with the Second Amended and Restated Term Loan Credit Agreement, the Second Amended and Restated Credit Agreement). The Second Amended and Restated Credit Agreement amends and restates the previous Amended and Restated Credit Agreement (as described and defined in our 2024 Annual Report on Form 10-K).

The Second Amended and Restated Credit Agreement provides for a $28.245 million credit facility consisting of a $23.245 million senior secured term loan (Term Loan) and a $5.0 million working capital facility (Revolver). The Term Loan consists of the

$12.135 million balance outstanding under the previous term loan, plus an additional $1.110 million related to the exit fee that would otherwise have been due upon closing of the Second and Amended Restated Term Loan Credit Agreement, as well as an additional tranche of $10.0 million that may become available for use in an acquisition, with MidCap’s consent. The maximum loan amount under the Revolver is $5.0 million, with borrowings limited in accordance with a borrowing base calculation, based solely on eligible accounts receivable.

The interest on the Term Loan is based on the forward-looking one-month term Secured Overnight Financing Rate adjusted upward by 0.10% (Term SOFR), plus an applicable margin of 6.45%, subject to a Term SOFR floor of 3.75%. If any advance under the Term Loan is prepaid at any time, a prepayment fee is charged based on the amount being prepaid and an applicable percentage amount, such as 4%, 3%, or 1%, based on the date the prepayment is made. Interest on an outstanding balance under the Revolver is payable monthly in arrears at an annual rate of Term SOFR plus an applicable margin of 4.00%, subject to a Term SOFR floor of 3.75%.

The Second Amended and Restated Credit Agreement includes minimum net revenue requirements that are measured on a trailing twelve-month basis and a minimum cash requirement throughout the term of the Second Amended and Restated Credit Agreement. For example, the Company’s minimum net revenue requirement for the twelve months ending December 31, 2025, is $39.0 million. The minimum cash requirement is $8.0 million, which includes cash and cash equivalents as well as short-term investments in U.S. Treasuries, under the terms of the Second Amended and Restated Credit Agreement.

The maturity date of the Second Amended and Restated Credit Agreement is March 1, 2030, with principal repayments beginning on April 1, 2028. On the date of termination of the Term Loan or the date on which the obligations under the Term Loan become due and payable in full, the Company will pay an exit fee in an amount equal to 5.0% of the total aggregate principal amount of term loans made pursuant to the Second Amended and Restated Term Loan Credit Agreement as of such date.

Long-term debt, net consisted of the following (in thousands):


	As of September 30, 2025			As of December 31, 2024
Long-term debt	$	13,245		$	12,135
Cumulative accretion of exit fee		70			1,544
Unamortized debt discount and debt issuance costs		(239	)		(191	)
Total debt		13,076			13,488
Less: current portion		—			(4,045	)
Long-term debt, net	$	13,076		$	9,443

At September 30, 2025, the scheduled maturities of the Company’s debt obligations were as follows (in thousands):


	Amount
Remainder of 2025	$	—
2026		—
2027		—
2028		5,519
2029		6,623
Thereafter		1,103
Total	$	13,245

As of September 30, 2025, the fair value of the Company’s debt approximated its carrying value. The fair value of the Company’s debt was based on observable market inputs (Level 2).

Note 13. Stock-Based Compensation

Equity Incentive Plans

The Company maintains a stock incentive plan that permits the granting of incentive stock options or nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance awards, and other stock-based awards. The equity-based awards for employees generally vest over a four-year period. For initial equity-based awards granted to employees, the first vest is generally a one-year cliff vest, followed by monthly vesting for the final three years. Thereafter, annual equity-based awards granted to employees typically vest monthly over the four-year vest term, except for restricted stock units which vest annually over a four year period. The initial equity-based awards granted to the Company’s non-employee, independent directors upon appointment to the board of directors vest over a three-year period, with the first vest being a one-year cliff, followed by monthly vesting over the remaining two years. Thereafter, annual equity-based awards granted to the Company’s non-employee, independent directors cliff vest after one year from the date of grant.

Stock Options

The following table summarizes the stock option activity for the nine months ended September 30, 2025 (in thousands, except share and per share data):


	Number of Shares			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding at January 1, 2025		3,992,335		$	4.99		6.86	$	19,318
Granted		1,439,255		$	7.81
Exercised		(20,677	)	$	2.37
Forfeited		(67,769	)	$	7.64
Expired		(32,536	)	$	10.78
Outstanding at September 30, 2025		5,310,608		$	5.69		6.95	$	16,469
Exercisable at September 30, 2025		3,083,268		$	2.31		6.07	$	12,332
Vested and expected to vest at September 30, 2025		5,025,926		$	3.74		7.16	$	14,836

The weighted average assumptions used in the Black-Scholes pricing model for stock options granted during the three and nine months ended September 30, 2025 and 2024, were as follows:


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2025			2024			2025			2024
Estimated dividend yield		-	%		-	%		-	%		-	%
Weighted-average expected stock price volatility		36.58	%		36.05	%		36.06	%		35.91	%
Weighted-average risk-free interest rate		4.16	%		3.49	%		4.33	%		4.33	%
Expected average term of options (in years)		6.25			6.25			6.16			6.25
Weighted-average fair value of common stock	$	4.44		$	4.40		$	7.81		$	2.86
Weighted-average fair value per option	$	1.94		$	1.84		$	3.39		$	1.24

Restricted Stock

The following table summarizes the restricted stock unit activity for the nine months ended September 30, 2025 (in thousands, except share and per share data):


	Number of Shares			Weighted Average Grant Date Fair Value per Share		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding at January 1, 2025		127,611		$	3.47		0.84	$	1,066
Granted		—		$	—
Vested		(82,538	)	$	2.42
Forfeited		—		$	—
Outstanding at September 30, 2025		45,073		$	5.41		0.91	$	279
Vested and expected to vest at September 30, 2025		45,073		$	5.41		0.91	$	279

Employee Stock Purchase Plan

The Company maintains an employee stock purchase plan (ESPP) that authorizes the issuance of shares of common stock pursuant to purchase rights granted to eligible employees. Unless otherwise determined by the Company’s board of directors, shares of the Company’s common stock will be purchased for the accounts of employees participating in the Company’s ESPP at a price per share equal to the lesser of (i) 85% of the fair market value of a share of the Company’s common stock on the first day of an offering; or (ii) 85% of the fair market value of a share of the Company’s common stock on the date of purchase. Offering periods are generally six months long; offering periods begin on June 1 and December 1 of each year. The Company issued zero and 11,518 shares of common stock under the ESPP during the three and nine months ended September 30, 2025 and zero and 54,314 shares of common stock under the ESPP during the three and nine months ended September 30, 2024.

Repricing of Outstanding and Unexercised Options

In January 2024, the Company’s board of directors approved a one-time repricing of certain previously granted and still outstanding vested and unvested stock option awards held by eligible employees, executive officers, and non-employee directors. As a result, the exercise price for these awards was lowered to $2.97 per share effective September 14, 2025, which was the closing price of the Company’s common stock as reported on the Nasdaq Global Stock Market on March 14, 2024, so long as the holder remained employed by the Company or continued to serve as a member of the board of directors through September 14, 2025, absent earlier trigger events defined in the option repricing plan. No other terms of the stock options were modified, and the stock options continue to vest according to their original vesting schedules and retain their original expiration dates. As a result of the repricing, 1,557,301 vested and unvested stock options outstanding as of September 14, 2025, with original exercise prices ranging from $3.02 to $27.49, were repriced.

The repricing on March 14, 2024, resulted in incremental stock-based compensation expense of $0.9 million, of which $0.5 million related to vested stock option awards and was expensed on the repricing date. The remaining $0.4 million related to unvested stock option awards and is being amortized on a straight-line basis over the weighted-average vesting period of those awards of approximately 2.38 years as of March 14, 2024.

Stock-Based Compensation Expense

Stock-based compensation expense included in the accompanying condensed financial statements was as follows (in thousands):


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2025		2024		2025		2024
Cost of sales	$	29	$	10	$	85	$	89
Research and development		14		18		13		65
Sales and marketing		61		33		166		162
General and administrative		746		699		2,388		2,584
Total stock-based compensation expense	$	850	$	760	$	2,652	$	2,900

Stock-based compensation expense related to stock options was $0.8 million and $2.5 million for the three and nine months ended September 30, 2025, respectively, and $0.7 million and $2.7 million for the three and nine months ended September 30, 2024, respectively. Unrecognized compensation expense related to stock options was $5.4 million at September 30, 2025, which is expected to be recognized as expense over the weighted-average period of 2.71 years.

Stock-based compensation expense related to restricted stock units was not significant and $0.1 million for the three and nine months ended September 30, 2025, and $0.1 million and $0.2 million for each of the three and nine months ended September 30, 2024. Unrecognized compensation expense related to restricted stock units was $0.2 million at September 30, 2025, which is expected to be recognized as expense over the weighted-average period of 1.41 years.

Stock-based compensation expense related to the ESPP was not significant for either the three and nine months ended September 30, 2025 and 2024. Total compensation cost related to the ESPP not yet recognized was not significant at September 30, 2025. As of September 30, 2025, an insignificant amount has been withheld on behalf of employees for future purchases under the ESPP.

Note 14. Income Taxes

For the three months ended September 30, 2025, the Company’s income tax expense was $0.1 million, compared to the three months ended September 30, 2024, when the Company recorded minimal income tax benefit. The effective tax rates for the three months ended September 30, 2025 and 2024 were (1.9%) and 0.1%, respectively. The effective tax rates differ from the federal statutory rate primarily due to operating losses not expected to produce an income tax benefit.

For the nine months ended September 30, 2025, the Company’s income tax expense was $0.1 million, compared to the nine months ended September 30, 2024 when the Company recorded $0.1 million income tax benefit. The effective tax rates for the nine months ended September 30, 2025 and 2024 were (1.0)% and 0.2%, respectively. The effective tax rates differ from the federal statutory rate primarily due to operating losses not expected to produce an income tax benefit.

The Company had insignificant unrecognized tax benefits as of September 30, 2025 and 2024. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company does not expect the balance of unrecognized tax benefits to change significantly over the next twelve months. The Company has not accrued interest or penalties related to uncertain tax positions as of September 30, 2025 or 2024.

On July 4, 2025, the United States enacted into law new tax legislation, the One Big Beautiful Bill Act, (OBBBA). The OBBBA includes significant changes to federal tax law and other regulatory provisions. The adoption of this standard did not have a significant impact on the Company’s financial statements nor is it expected to have a material impact on future periods.

Note 15. Net Loss Per Share

Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potentially dilutive common stock equivalents to the extent they are dilutive. For purposes of this calculation, stock options, restricted stock units, employee stock purchase rights, and warrants to purchase common stock, are considered to be common stock equivalents but have been excluded from the calculation of diluted net loss per share as their effect is anti-dilutive for all periods presented.

The following table sets forth the computation of basic and diluted net loss per share (in thousands, except share and per share data):


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2025			2024			2025			2024
Net loss	$	(4,286	)	$	(7,565	)	$	(12,501	)	$	(21,026	)
Weighted average shares used in computing net loss per share—basic and diluted		53,516,986			51,821,395			53,462,768			44,520,132
Net loss per share—basic and diluted	$	(0.08	)	$	(0.15	)	$	(0.23	)	$	(0.47	)

The following is a summary of the common stock equivalents for the securities outstanding during the respective periods that have been excluded from the computation of diluted net loss per common share, as their effect would be anti-dilutive:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2025		2024		2025		2024
Equity-based compensation		5,093,158		3,873,226		4,842,013		3,970,116
Warrants to purchase common stock		—		125,000		—		94,434

Note 16. Contingencies

From time to time, we may become involved in lawsuits and other claims arising from our ordinary course of business. The Company regularly evaluates its exposure to threatened or pending litigation and other business contingencies. Because of the uncertainties related to the amount of loss from litigation and other business contingencies, the recording of losses relating to such exposures requires significant judgment about the potential range of outcomes. We establish loss provisions for matters in which losses are probable and can be reasonably estimated. If a loss is not both probable and reasonably estimable, or if an exposure to loss exists in excess of the amount accrued, the Company assesses whether there is at least a reasonable possibility that a loss, or additional loss, may have been incurred. If there is a reasonable possibility that a loss, or additional loss, may have been incurred, the Company will disclose the estimate of the possible loss or range of loss if it is material and an estimate can be made, or disclose that such an estimate cannot be made. The determination as to whether a loss can reasonably be considered to be possible or probable is based on our assessment, together with legal counsel, regarding the ultimate outcome of the matter. As additional information about current or future litigation or other contingencies becomes available, the Company will assess whether adjustments should be made to legal accruals.

In August 2023, a former Teknova employee filed a claim with the California Labor and Workforce Development Agency alleging various causes of action under California’s labor, wage, and hour laws. The plaintiff generally alleged that Teknova did not appropriately calculate and pay meal break premiums and otherwise failed to calculate and pay appropriate overtime wages or bonuses to certain of its California non-exempt employees. On June 6, 2024, a mediation took place, in the course of which Teknova agreed to settle the plaintiff’s claims for $0.4 million (the Settlement). As of December 31, 2024, the Company had therefore accrued its best estimate of potential loss related to a possible settlement of the claims of the former employee and other members of the purported class (similarly situated former or current employees), in the amount of $0.4 million, which was included within “Accrued liabilities” on the balance sheet. In April 2025, the Settlement received final court approval and the Company paid the Settlement amount.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

You should read the following discussion and analysis of our financial condition and results of operations together with our unaudited condensed financial statements and related notes thereto included in Part I, Item I of this Quarterly Report on Form 10-Q and with our audited financial statements and related notes thereto for the year ended December 31, 2024, included in the 2024 Annual Report on Form 10-K (the 2024 Annual Report on Form 10-K) filed on March 7, 2025, with the Securities and Exchange Commission (SEC). For a discussion of factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis and elsewhere in this Quarterly Report on Form 10-Q, you should review the risk factors identified in Part I, Item 1A, Risk Factors, of our 2024 Annual Report on Form 10-K and in Item 1A, Risk Factors, of this Quarterly Report on Form 10-Q.

As in Item 1. of this Quarterly Report on Form 10-Q, in this Item 2, unless the context otherwise requires, the terms “Teknova,” the “Company,” “we,” “us,” and “our” refer to Alpha Teknova, Inc.

Overview

Since our founding in 1996, we have been producing critical reagents for the discovery, development, and commercialization of novel therapies, vaccines, and molecular diagnostics. Our approximately 3,000 customers span the entire continuum of the life sciences market, including leading pharmaceutical and biotechnology companies, contract development and manufacturing organizations, in vitro diagnostics franchises, and academic and government research institutions. Our Company is built around our knowledge, methods, and know-how in our proprietary manufacturing processes, which are highly adaptable and configurable. These proprietary processes enable us to manufacture and deliver high-quality, custom, made-to-order products with short turnaround times and at scale, across all stages of our customers’ product development, from early research through commercialization.

We have two primary product categories: Lab Essentials and Clinical Solutions. Our products cross all stages of development, from early research through commercialization. We offer three primary product types: (i) pre-poured media plates for cell growth and cloning; (ii) liquid cell culture media and supplements for cellular expansion; and (iii) molecular biology reagents for sample manipulation, resuspension, and purification. Our liquid cell culture media and supplements and molecular biology reagents are available in both of our two primary product categories; pre-poured media plates are available in our Lab Essentials category only.

We are ISO 13485:2016 certified, enabling us to manufacture products for use in diagnostic and therapeutic applications. Our certification allows us to offer solutions across the entire customer product development workflow, supporting our customers’ needs for materials in greater volume and that meet increasingly stringent quality requirements as they scale from research to commercialization.

We manufacture our products at our Hollister, California headquarters and stock inventory of raw materials, components, and finished goods at that campus. We rely on a limited number of suppliers for certain raw materials, and we have no long-term supply arrangements with our suppliers, as we order on a purchase order basis. We ship our products directly from our warehouse in Hollister, California, to our customers and distributors, generally pursuant to purchase orders. We typically recognize revenue when products are shipped.

We generated revenue of $10.5 million during the three months ended September 30, 2025, which represents an increase of $0.9 million compared to revenue of $9.6 million during the three months ended September 30, 2024. For the three months ended September 30, 2025 and 2024, only 5.9% and 5.4%, respectively, of our revenue was generated from customers located outside of the United States. We generated revenue of $30.5 million during the nine months ended September 30, 2025, which represents an increase of $2.1 million compared to revenue of $28.5 million during the nine months ended September 30, 2024. For the nine months ended September 30, 2025 and 2024, only 5.4% and 4.7%, respectively, of our revenue was generated from customers located outside of the United States. Our sales outside of the United States are denominated in U.S. Dollars.

We had an operating loss of $4.0 million during the three months ended September 30, 2025, compared to an operating loss of $7.4 million during the three months ended September 30, 2024. We had an operating loss of $12.4 million during the nine months ended September 30, 2025, compared to an operating loss of $20.5 million during the nine months ended September 30, 2024. While our expenses may fluctuate over the short term, we expect our expenses will increase in future periods, in connection with our ongoing activities as we:

•

attract, hire, and retain qualified personnel;

•

invest in processes and infrastructure to improve operating efficiency and expand capacity at our facilities, including the ramp up of our new, state-of-the-art manufacturing, warehouse, and distribution facilities; and

•

build our brand and market and sell our products and services.

Impact of Broader Economic Trends on Our Business

We are closely monitoring economic uncertainty in the U.S. and abroad. General inflation in the U.S. rose in recent years to levels not experienced in recent decades. While the rate of inflation moderated in 2024, general inflation, including rising prices for our raw materials and other inputs, as well as rising salaries and other expenses, can negatively impact our business by increasing our cost of sales and operating expenses. In addition, during early 2024, the U.S. Federal Reserve raised interest rates in response to concerns about inflation, and although the U.S. Federal Reserve lowered interest rates in late 2024 and in September 2025, the direction and timing of future interest rate changes remain uncertain. Inflation, together with increased interest rates, and broader macroeconomic uncertainty, may cause our customers to reduce, delay, or cancel orders for our goods and services, thereby causing a decrease in or change in the timing of sales of our products and services. We cannot predict the impact of future inflation and interest rate changes on the results of our operations. Furthermore, changes to tariff and related international trade policy so far in 2025 create uncertainty about the broader economy and our business. For further information regarding the impact of these economic factors on the Company, please see the risk factors identified in Part I, Item 1A, Risk Factors, of our 2024 Annual Report on Form 10-K.

Results of Operations

Comparison of the Three Months Ended September 30, 2025, and Three Months Ended September 30, 2024

The following tables set forth our results of operations for the three months ended September 30, 2025 and 2024 (dollars in thousands):


	For the Three Months Ended September 30,
	2025		2024		$ Change			% Change
Revenue	$	10,454	$	9,576	$	878			9.2	%
Cost of sales		7,248		9,486		(2,238	)		(23.6	)%
Gross profit		3,206		90		3,116			3462.2	%
Operating expenses:
Research and development		542		627		(85	)		(13.6	)%
Sales and marketing		1,747		1,640		107

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

Alpha Teknova, Inc. 10-Q