GINKGO BIOWORKS HOLDINGS, INC., 10-K filed on 3/13/2023
Annual Report
v3.22.4
Document and Entity Information - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Mar. 02, 2023
Jun. 30, 2022
Document Information [Line Items]      
Document Type 10-K    
Amendment Flag false    
Document Annual Report true    
Document Transition Report false    
Document Period End Date Dec. 31, 2022    
Document Fiscal Year Focus 2022    
Document Fiscal Period Focus FY    
Entity Registrant Name GINKGO BIOWORKS HOLDINGS, INC.    
Entity Tax Identification Number 87-2652913    
Entity Central Index Key 0001830214    
Entity Incorporation, State or Country Code DE    
Current Fiscal Year End Date --12-31    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Voluntary Filers No    
Entity Well-known Seasoned Issuer No    
Entity Filer Category Large Accelerated Filer    
Entity File Number 001-40097    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Shell Company false    
ICFR Auditor Attestation Flag true    
Entity Address, Address Line One 27 Drydock Avenue    
Entity Address, Address Line Two 8th Floor    
Entity Address, City or Town Boston    
Entity Address, State or Province MA    
Entity Address, Postal Zip Code 02210    
City Area Code 877    
Local Phone Number 422-5362    
Entity Bankruptcy Proceedings, Reporting Current true    
Entity Public Float     $ 2,392
Auditor Firm ID 42    
Auditor Name Ernst & Young LLP    
Auditor Location Boston, Massachusetts    
Documents Incorporated by Reference

The information required by Part III of this report is incorporated by reference from the registrant’s definitive proxy statement relating to its annual meeting of stockholders to be held in 2023, which definitive proxy statement will be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates.

   
Warrants, each whole warrant exercisable for one Class A ordinary share, each at an exercise price of $11.50 per share [Member]      
Document Information [Line Items]      
Trading Symbol DNA.WS    
Title of 12(b) Security Warrants to purchase one share of Class A common stock, each at an exercise price of $11.50 per share    
Security Exchange Name NYSE    
Common Class A [Member]      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   1,570,064,412  
Trading Symbol DNA    
Title of 12(b) Security Class A common stock, par value $0.0001 per share    
Security Exchange Name NYSE    
Common Class B [Member]      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   382,516,010  
v3.22.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Current assets:    
Cash and cash equivalents $ 1,315,792 $ 1,550,004
Accounts receivable, net 80,907 131,544
Accounts receivable - related parties 1,558 4,598
Inventory, net 4,364 3,362
Prepaid expenses and other current assets 47,458 33,537
Total current assets 1,450,079 1,723,045
Property, plant, and equipment, net 314,773 145,770
Operating lease right-of-use assets 400,762 0
Investments 112,188 102,037
Equity method investments 1,543 13,194
Intangible assets, net 111,041 21,642
Goodwill 60,210 21,312
Other non-current assets 88,725 43,990
Total assets 2,539,321 2,070,990
Current liabilities:    
Accounts payable 10,451 8,189
Deferred revenue (includes $10,309 and $12,502 from related parties) 47,817 33,240
Accrued expenses and other current liabilities 114,694 93,332
Total current liabilities 172,962 134,761
Non-current liabilities:    
Deferred rent, net of current portion 0 18,746
Deferred revenue, net of current portion (includes $131,188 and $148,319 from related parties) 174,767 155,991
Operating lease liabilities, non-current 413,256 0
Lease financing obligation   22,283
Warrant liabilities 10,868 135,838
Other non-current liabilities 31,191 35,992
Total liabilities 803,044 503,611
Commitments and contingencies (Note 11)
Stockholders’ equity:    
Preferred stock, $0.0001 par value; 200,000,000 shares authorized; none issued 0 0
Common stock $0.0001 par value (Note 12) 190 161
Additional paid-in capital 6,136,378 3,804,844
Accumulated deficit (4,397,659) (2,297,925)
Accumulated other comprehensive loss (2,632) (1,715)
Total Ginkgo Bioworks Holdings, Inc. stockholders’ equity 1,736,277 1,505,365
Non-controlling interest 0 62,014
Total stockholders’ equity 1,736,277 1,567,379
Total liabilities and stockholders’ equity $ 2,539,321 $ 2,070,990
v3.22.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Statement of Financial Position [Abstract]    
Deferred revenue from related parties $ 10,309 $ 12,502
Deferred revenue, net of current portion from related parties $ 131,188 $ 148,319
Preferred stock par or stated value per share $ 0.0001 $ 0.0001
Preferred stock shares authorized 200,000,000 200,000,000
Preferred stock shares issued 0 0
Common stock par or stated value per share $ 0.0001 $ 0.0001
v3.22.4
Consolidated Statements of Operations and Comprehensive Loss - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Biosecurity revenue:      
Total revenue $ 477,706 $ 313,837 $ 76,657
Costs and operating expenses:      
Research and development 1,052,643 1,149,662 159,767
General and administrative expenses 1,429,799 862,952 38,306
Total operating expenses 2,686,658 2,142,304 213,684
Loss from operations (2,208,952) (1,828,467) (137,027)
Other income (expense):      
Interest income 20,262 837 2,582
Interest expense (106) (2,373) (2,385)
(Loss) gain on equity method investments: (43,761) (77,284) (396)
Loss on investments (53,335) (11,543) (3,733)
Change in fair value of warrant liabilities 124,970 58,615 0
Gain on settlement of partnership agreement 0 23,826 8,286
Gain on deconsolidation of subsidiaries 31,889 0 0
Other income (expense), net 7,634 (1,733) 7,839
Total other income (expense), net 87,553 (9,655) 12,193
Loss before income taxes (2,121,399) (1,838,122) (124,834)
Income tax (benefit) provision (15,027) (1,480) 1,889
Net loss (2,106,372) (1,836,642) (126,723)
Loss attributable to non-controlling interest (1,443) (6,595) (114)
Net loss attributable to Ginkgo Bioworks Holdings, Inc. stockholders $ (2,104,929) $ (1,830,047) $ (126,609)
Net loss per share attributable to Ginkgo Bioworks Holdings, Inc. common stockholders (2):      
Basic $ (1.25) $ (1.35) $ (0.10)
Diluted $ (1.25) $ (1.39) $ (0.10)
Weighted average common shares outstanding (2)      
Basic 1,679,061,465 1,359,848,803 1,274,766,915
Diluted 1,679,838,849 1,360,373,343 1,274,766,915
Comprehensive loss:      
Net loss $ (2,106,372) $ (1,836,642) $ (126,723)
Other comprehensive loss:      
Foreign currency translation adjustment (917) (1,715)
Total other comprehensive loss (917) (1,715)
Comprehensive loss (2,107,289) (1,838,357) (126,723)
Product      
Biosecurity revenue:      
Total revenue 35,455 23,040 8,707
Costs and operating expenses:      
Cost of Biosecurity revenue 20,646 20,017 6,705
Service      
Biosecurity revenue:      
Total revenue 298,585 177,808 8,729
Costs and operating expenses:      
Cost of Biosecurity revenue 183,570 109,673 8,906
Foundry Revenue [Member]      
Biosecurity revenue:      
Total revenue [1] $ 143,666 $ 112,989 $ 59,221
[1]

(1)

(2)

Includes related party revenue of $38,813, $47,161, and $42,535 for the years ended 2022, 2021, and 2020, respectively.

Amounts for the year ended December 31, 2020 have been retroactively restated for the reverse recapitalization as described in Note 2.

v3.22.4
Consolidated Statements of Operations and Comprehensive Loss (Parenthetical) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Statement [Abstract]      
Revenue from related parties $ 38,813 $ 47,161 $ 42,535
v3.22.4
Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
AOCI Attributable to Parent [Member]
Noncontrolling Interest [Member]
Beginning balance at Dec. 31, 2019 $ 501,853 $ 126 $ 834,206 $ (341,269) $ 0 $ 8,790
Beginning balance (Shares) at Dec. 31, 2019   1,255,562,032        
Issuance of Series E convertible preferred stock, Shares   30,855,065        
Issuance of Series E convertible preferred stock 94,420 $ 3 94,417      
Issuance of common stock upon exercise or vesting of equity awards 26   26      
Issuance of common stock upon exercise or vesting of equity awards, shares   2,178,779        
Stock-based compensation expense 476   476      
Net loss (126,723)     (126,609)   (114)
Ending balance at Dec. 31, 2020 470,052 $ 129 929,125 (467,878)   8,676
Ending balance (Shares) at Dec. 31, 2020   1,288,595,876        
Issuance of common stock upon exercise or vesting of equity awards 176 $ 9 167      
Issuance of common stock upon exercise or vesting of equity awards, shares   91,080,290        
Tax withholdings related to net share settlement of equity awards (9,463)   (9,463)      
Tax withholdings related to net share settlement of equity awards   (797,313)        
Vesting of restricted stock awards   $ 4 (4)      
Vesting of restricted stock awards, shares   38,798,801        
Founder shares repurchase, shares   (2,707,280)        
Founder shares repurchase (24,998)   (24,998)      
Issuance of warrants to purchase Series D convertible preferred stock 300   300      
Assumption of Public and Private Placement Warrants (194,453)   (194,453)      
Non-controlling interest contributions 59,933         59,933
Stock-based compensation expense 1,579,400   1,579,400      
Foreign currency translation (1,715)       (1,715)  
Issuance of Series D and B convertible preferred stock upon exercise of warrants, shares   1,013,708        
Issuance of Series E convertible preferred stock in exchange for warrants, shares   408,497        
Issuance of common stock for business and asset acquisitions, net of issuance costs 15,160   15,160      
Issuance of common stock for business and asset acquisitions, net of issuance costs, shares   1,633,937        
Issuance of common stock upon reverse recapitalization, net of offering costs (Note 3), shares   193,365,636        
Issuance of common stock upon reverse recapitalization, net of offering costs (Note 3) 1,509,629 $ 19 1,509,610      
Net loss (1,836,642)     (1,830,047)   (6,595)
Ending balance at Dec. 31, 2021 1,567,379 $ 161 3,804,844 (2,297,925) (1,715) 62,014
Ending balance (Shares) at Dec. 31, 2021   1,611,392,152        
Stockholders' Equity Attributable to Parent, Beginning Balance at Dec. 31, 2021 $ 1,505,365          
Exercise of stock options, Share 12,876,227          
Issuance of common stock upon exercise or vesting of equity awards $ 252 $ 13 239      
Issuance of common stock upon exercise or vesting of equity awards, shares   124,651,014        
Tax withholdings related to net share settlement of equity awards (981)   (981)      
Tax withholdings related to net share settlement of equity awards   (295,621)        
Stock-based compensation expense 1,947,474   1,945,247     2,227
Foreign currency translation (917)       (917)  
Issuance of common stock upon exercise of Public Warrants   30        
Issuance of common stock pursuant to public offering, net of issuance costs 98,910 $ 4 98,906      
Issuance of common stock pursuant to public offering, net of issuance costs, Shares   41,383,877        
Issuance of common stock in exchange for services 1,000   1,000      
Issuance of common stock in exchange for services, Shares   327,289        
Adoption of ASC 842 5,195     5,195    
Issuance of common stock for business and asset acquisitions, net of issuance costs 279,745 $ 12 279,733      
Issuance of common stock for business and asset acquisitions, net of issuance costs, shares   114,517,223        
Deconsolidation of subsidiaries (55,408)         (55,408)
Acquisition of non-controlling interests 0   7,390     (7,390)
Net loss (2,106,372)     (2,104,929)   (1,443)
Ending balance at Dec. 31, 2022 $ 1,736,277 $ 190 $ 6,136,378 $ (4,397,659) $ (2,632) $ 0
Ending balance (Shares) at Dec. 31, 2022   1,891,975,964        
v3.22.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Cash flows from operating activities:      
Net loss $ (2,106,372) $ (1,836,642) $ (126,723)
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation and amortization 42,552 29,076 13,864
Stock-based compensation 1,930,641 1,606,020 476
Non-cash customer consideration (34,263) (24,185) 0
Loss on equity method investments 43,761 77,284 396
Loss on investments 53,335 11,543 3,733
Change in fair value of notes receivable (3,757) 3,508 (1,061)
Change in fair value of warrant liabilities (124,970) (58,615) 0
Gain on deconsolidation of subsidiaries (Note 6) (31,889) 0 0
Deferred income tax benefit (14,609) 0 0
Loss on disposal of equipment 3,091 0 0
Non-cash lease expense 19,082
Amortization of finance lease right-of-use assets 1,871 0 0
Non-cash severance and retention bonus expense associated with an acquisition 6,152 0 0
Other non-cash activity 183 (270) 0
Changes in operating assets and liabilities:      
Accounts receivable ($3,040, $614 and ($995) from related parties) 55,024 (114,094) (14,228)
Prepaid expenses and other current assets (8,687) (2,981) (11,352)
Inventory 164 (626) (2,736)
Operating lease right-of-use assets 13,233 0 0
Other non-current assets 921 (539) 1,834
Accounts payable (10,844) (2,247) 7,019
Accrued expenses and other current liabilities (39,639) 44,796 8,665
Deferred revenue, current and non-current (($19,324), $40,743 and ($22,253) from related parties) (36,417) (10,498) (19,423)
Operating lease liabilities, current and non-current (10,792) 0 0
Deferred rent, non-current 0 6,032 1,045
Other non-current liabilities 31 18,620 2,661
Net cash used in operating activities (252,198) (253,818) (135,830)
Cash flows from investing activities:      
Purchases of property and equipment (52,271) (56,521) (57,821)
Deconsolidation of subsidiaries - cash (55,721) 0 0
Business acquisitions, net of cash acquired 82,367 12,040 0
Asset acquisitions, net of cash acquired (7,639) 0 0
Purchases of notes receivable (2022: $10,000 from related party) (40,000) 0 (10,100)
Proceeds from notes receivable 10,000 304 800
Purchase of investment in equity securities (3,691) (5,000) 0
Other (439) 0 0
Net cash used in investing activities (67,394) (73,257) (67,121)
Cash flows from financing activities:      
Proceeds from reverse recapitalization, net of redemptions of $867,253 and offering costs of $108,118 (Note 3) 0 1,509,629 0
Proceeds from exercise of stock options 240 167 26
Repurchases of common stock 0 (24,998) 0
Taxes paid related to net share settlement of equity awards (981) (9,463) 0
Principal payments on finance/capital leases and lease financing obligation (1,237) (1,123) (748)
Contributions from non-controlling interests 0 59,933 0
Proceeds from public offering, net of issuance costs 99,303 0 0
Proceeds from issuance of Series E convertible preferred stock, net of issuance costs 0 0 91,040
Contingent consideration payment (521) 0 0
Payment of equity issuance costs (1,467)
Net cash provided by financing activities 95,337 1,534,145 90,318
Effect of foreign exchange rates on cash and cash equivalents 908 (19) 0
Net (decrease) increase in cash, cash equivalents and restricted cash (223,347) 1,207,051 (112,633)
Cash and cash equivalents, beginning of period 1,550,004 380,801 495,287
Restricted cash, beginning of period 42,924 5,076 3,223
Cash, cash equivalents and restricted cash, beginning of period 1,592,928 385,877 498,510
Cash and cash equivalents, end of period 1,315,792 1,550,004 380,801
Restricted cash, end of period 53,789 42,924 5,076
Cash, cash equivalents and restricted cash, end of period 1,369,581 1,592,928 385,877
Supplemental disclosure of cash flow information:      
Cash paid for interest 92 2,370 2,572
Cash paid for income taxes 0 61 0
Supplemental disclosure of non-cash investing and financing activities:      
ROU assets obtained in exchange for new operating lease liabilities upon adoption of ASC 842 147,744    
ROU assets obtained in exchange for new finance lease liabilities upon adoption of ASC 842 3,397    
ROU asset obtained in exchange for new operating lease liabilities 79,984    
ROU asset obtained in exchange for new finance lease liabilities 1,729    
Purchase of minority interest in Cooksonia 7,390    
Purchases of equipment through capital leases 0 1,981 0
Lease financing obligation for build-to-suit lease 6,120 0
Purchases of property and equipment included in accounts payable and accrued expenses 12,881 1,815 14,458
Equity received in related parties 8,873 61,554 0
Convertible financial instruments received for Foundry services 29,074 0 375
Equity securities and warrants received for Foundry services 3,423 10,000 0
Conversion of convertible promissory notes to preferred stock 0 195 0
Non-cash consideration paid for the acquisition of Zymergen 231,750    
Common stock issued for acquisitions 40,382 15,087 0
Acquisition date fair value of contingent consideration 19,912 8,760 0
Acquisition date fair value of warrant liabilities 0 194,453 0
Equity issuance costs in accounts payable and accrued expenses $ 578 $ 0 $ 0
v3.22.4
Consolidated Statements of Cash Flows (Parenthetical) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Statement of Cash Flows [Abstract]      
Accounts Receivable From Related Parties $ 3,040 $ 614 $ (995)
Deferred revenue from related parties (19,324) $ 40,743 $ (22,253)
Reverse recapitalization redemption amount 867,253    
Notes Receivable, Related Parties 10,000    
Deferred Offering Costs $ 108,118    
v3.22.4
Organization and Basis of Presentation
12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Basis of Presentation

1. Organization and Basis of Presentation

Business

The mission of Ginkgo Bioworks Holdings, Inc. (“Ginkgo” or the “Company”) is to make biology easier to engineer. The Company designs custom cells for customers across multiple markets. Since inception, the Company has devoted its efforts to improving its platform for programming cells to enable customers to leverage biology to create impactful products across a range of industries. The Company’s platform comprises (i) equipment, robotic automation, software, data pipelines and tools, and standard operating procedures for high throughput genetic engineering, fermentation, and analytics (referred to collectively as the “Foundry”), (ii) a library of proprietary genetic assets and associated performance data (referred to collectively as “Codebase”), and (iii) the Company’s team of expert users, developers and operators of the Foundry and Codebase.

On September 16, 2021, Soaring Eagle Acquisition Corp. (“SRNG”) consummated the merger transaction contemplated by the agreement and plan of merger, dated as of May 11, 2021, and amended on May 14, 2021 (the “Merger Agreement”), by and among SRNG, SEAC Merger Sub Inc., a wholly owned subsidiary of SRNG (“Merger Sub”), and Ginkgo Bioworks, Inc. (“Old Ginkgo”), whereby Merger Sub merged with and into Old Ginkgo, the separate corporate existence of Merger Sub ceased and Old Ginkgo survived the merger as a wholly owned subsidiary of SRNG (the “SRNG Business Combination”). In connection with the consummation of the SRNG Business Combination, SRNG changed its name to “Ginkgo Bioworks Holdings, Inc.” and, among other transactions contemplated by the Merger Agreement, the existing equity holders of Old Ginkgo exchanged their equity interests of Old Ginkgo for equity interests of Ginkgo.

 

As a result of the SRNG Business Combination, the shares and corresponding capital amounts and loss per share related to Old Ginkgo’s outstanding convertible preferred stock and common stock prior to the SRNG Business Combination have been retroactively restated to reflect the Exchange Ratio established in the Merger Agreement. See Note 3 for additional information on the SRNG Business Combination.

v3.22.4
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements have been prepared in conformity with the rules and regulations of the Securities and Exchange Commission (“SEC”) and generally accepted accounting principles in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”).

The SRNG Business Combination was accounted for as a reverse recapitalization, in accordance with GAAP (the “Reverse Recapitalization”). Under this method of accounting, SRNG was treated as the “acquired” company for financial reporting purposes. Accordingly, for accounting purposes, the Reverse Recapitalization was treated as the equivalent of Old Ginkgo issuing stock for the net assets of SRNG, accompanied by a recapitalization. The net assets of SRNG are stated at historical cost, with no goodwill or other intangible assets recorded. The determination of Old Ginkgo as the accounting acquirer was primarily based on the fact that Old Ginkgo’s former shareholders currently have the largest voting interest in Ginkgo, all of the management of Ginkgo is comprised of Old Ginkgo’s former executive management, Old Ginkgo's former directors and individuals designated by, or representing, Old Ginkgo shareholders constitute a majority of the initial Ginkgo Board, and the operations of Old Ginkgo comprise all of the ongoing operations of Ginkgo.

 

The consolidated assets, liabilities and results of operations prior to the Reverse Recapitalization are those of Old Ginkgo. The shares and corresponding capital amounts and loss per share prior to the Reverse Recapitalization have been retroactively restated to reflect the Exchange Ratio established in the Merger Agreement.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, majority owned subsidiaries and variable interest entities if the Company is the primary beneficiary. All intercompany accounts and transactions have been eliminated.

Reclassifications

Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.

Variable Interest Entities

The Company evaluates its variable interests in variable interest entities (“VIE”) and consolidates VIEs when the Company is the primary beneficiary. The Company determines whether it is the primary beneficiary of each VIE based on its assessment of whether the Company possesses both (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the obligation to absorb losses that could be significant to the VIE or the right to receive benefits that could be significant to the VIE. The Company reevaluates the accounting for its VIEs upon the occurrence of events that could change the primary beneficiary conclusion. As of December 31, 2022 and 2021, the maximum risk of loss related to the Company’s VIEs was limited to the carrying value of its investment in such entities.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent liabilities in the consolidated financial statements. Estimates used in the preparation of these consolidated financial statements include, among others, revenue recognition, stock-based compensation, the fair value of assets acquired and liabilities assumed in a business combination, the fair value of non-cash consideration received from customers, the fair value of certain notes receivable, the fair value of certain investments including equity method investments, the fair value of warrant liabilities, the allocation of equity method investment losses under the hypothetical liquidation at book value (“HLBV”) method, the incremental borrowing rate used in determining lease liabilities, allowance for credit losses, accrued expenses and income taxes.

The Company bases its estimates on historical experience and other market-specific or relevant assumptions that it believes to be reasonable under the circumstances. Reported amounts and disclosures reflect the overall economic conditions that management believes are most likely to occur, and the anticipated measures management intends to take. Actual results could differ materially from those estimates. All revisions to accounting estimates are recognized in the period in which the estimates are revised.

Segment Information

Prior to 2022, the Company operated as a single reportable segment. In the first quarter of 2022, the Company reorganized its operations into two operating and reportable segments: Foundry and Biosecurity. The reorganization reflects changes made to the Company’s internal management structure and how the Company’s chief operating decision makers (“CODMs”), comprised of the Chief Executive Officer and the Chief Operating Officer, evaluate operating results and make decisions on how to allocate resources. All prior-period comparative segment information was recast to reflect the current reportable segments in accordance with ASC 280, Segment Reporting. The Company’s CODMs do not evaluate operating segments using asset information.

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of cash and cash equivalents, restricted cash, accounts receivable, and notes receivable. The Company’s cash and cash equivalents and restricted cash are maintained in bank deposit accounts and money market funds that regularly exceed federally insured limits. The Company is exposed to credit risk on its cash, cash equivalents and restricted cash in the event of default by the financial institutions to the extent account balances exceed the amount insured by the Federal Deposit Insurance Corporation (“FDIC”). The Company believes that it is not exposed to significant credit risk as its deposits are generally held in financial institutions that management believes to be of high credit quality; however, the Company is exposed to loss of its uninsured deposits held at Silicon Valley Bank (see Note 21). The Company’s accounts receivable primarily consists of amounts due under its Biosecurity contracts; however, concentrations of credit risk associated with these contracts are limited because the customer base is largely made up of state government agencies. The Company has not experienced any material write-offs related to its accounts receivable since inception. The Company’s maximum credit risk exposure with respect to notes receivable is equivalent to the carrying value of the notes as of the balance sheet date. The Company mitigates this risk by requiring collateral for certain notes and monitoring the counterparty’s financial condition. Refer to Note 21 for further discussion regarding the potential impacts of the closure of Silicon Valley Bank to the Company’s accounts and notes receivable.

For the year ended December 31, 2022, two customers within the Biosecurity segment each account for 11% of the Company’s total revenue. For the year ended December 31, 2021, one customer within the Foundry segment and one customer within the Biosecurity segment accounted for 11% and 17%, respectively, of the Company’s total revenue. For the year ended December 31, 2020, two customers within the Foundry segment accounted for 27% and 12% of the Company’s total revenue. No other customer exceeded 10% of the Company’s total revenue in any period presented.

Cash and Cash Equivalents

The Company’s cash is comprised of bank deposits, overnight sweep accounts and money market funds. The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. The carrying value of the Company’s cash and cash equivalents approximate fair value due to their short-term maturities.

Restricted Cash

Restricted cash primarily includes cash balances collateralizing letters of credit associated with the Company’s facility leases and a customer prepayment requiring segregation and restrictions in its use in accordance with the customer agreement. Restricted cash is included in prepaid expenses and other current assets and other non-current assets on the consolidated balance sheet.

Accounts Receivable, net

Accounts receivable consists of credit extended to customers in the normal course of business and is reported at the estimated net realizable value. Accounts receivable includes unbilled amounts that have been recognized in revenue but have not yet been invoiced based on timing differences and the terms of the underlying arrangements. Prior to the Company’s adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), the Company maintained an allowance for doubtful accounts to provide for the estimated amounts of accounts receivable that would not be collected. The allowance was based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and collateral to the extent applicable. Subsequent to the adoption of ASU 2016-13, the Company maintains an allowance for credit losses for its outstanding accounts receivable.

 

Allowance for Credit Losses

The Company maintains an allowance for credit losses to provide for the estimated amounts of receivables that will not be collected over the estimated life of the assets. The allowance is calculated by considering previous loss history, delinquency of receivables balances, current economic conditions and anticipated future economic conditions in the geographies and industries in which the Company’s customers operate. To the extent an individual customer’s credit quality deteriorates, the Company measures an allowance based on the risk characteristics of the individual customer. Once a receivable is deemed to be uncollectible, such balance is charged against the allowance. The allowance is calculated at each reporting period with changes recorded to general and administrative expense in the consolidated statements of operations and comprehensive loss.

Inventory, net

Inventories are stated at the lower of cost or net realizable value. Inventory in the Biosecurity segment mainly consists of diagnostic testing kits purchased from suppliers, testing program supplies and the costs of assembling sample collection kits. The cost of finished goods inventory for lateral flow assay (“LFA”) and polymerase chain reaction (“PCR”) tests is determined using the first-in first-out method. The cost of raw materials, work in process and finished goods inventory for pooled tests is determined using the average cost method. Inventory in the Biosecurity segment has been reduced by an allowance for excess and obsolete inventory using the specific identification method.

Notes Receivable

The Company has elected the fair value option under ASC 825, Financial Instruments, to account for its notes receivable. Notes receivable accounted for under the fair value option are marked to market as of each balance sheet date with changes in fair value recorded in other income (expense), net in the consolidated statements of operations and comprehensive loss.

The Company classifies the current portion of the notes receivable balance as a component of prepaid expenses and other current assets on the consolidated balance sheet based on the principal balance of the note that matures within one year from the balance sheet date. The long-term portion is included in other non-current assets.

Property, Plant, and Equipment, net

Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Land is stated at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets or the remaining lease term for leasehold improvements. Estimated lives of property, plant and equipment are as follows:

 

 

Estimated Useful Life

Computer equipment and software

2 to 5 years

Furniture and fixtures

7 years

Lab equipment

1 to 5 years

Buildings and facilities

15 to 30 years

Vehicles

5 years

Leasehold improvements

Shorter of useful life or remaining lease term

 

Expenditures for maintenance and repairs are expensed as incurred. When assets are retired or otherwise disposed of, the related cost and accumulated depreciation or amortization is removed from the balance sheet and any resulting gain or loss is reflected in other income (expense), net in the consolidated statements of operations and comprehensive loss.

Construction in progress relates to assets which have not been placed in service as of period end. As of December 31, 2021, facilities included assets acquired under a build-to-suit lease arrangement, which was derecognized upon the adoption of ASU 2016-02, Leases (Topic 842) (“ASC 842”) on January 1, 2022.

Equity Method Investments

The Company utilizes the equity method to account for its investments in common stock, or in-substance common stock, when it possesses the ability to exercise significant influence, but not control, over the operating and financial policies of the investee. The Company uses judgment when determining the level of influence over the operating and financial policies of the investee considering key factors including, among others, the Company’s ownership interest, representation on the board of directors, participation in policy-making decisions and material contractual arrangements and obligations. Income and losses are allocated based upon relative ownership interest unless there is a substantive profit-sharing agreement in place.

For investments with a substantive profit-sharing agreement, the Company utilizes the HLBV method to allocate income and losses from the equity method investment. Under the HLBV method, the Company utilizes the capital account at the end of the period assuming the book value of the entity was liquidated or sold minus the same calculation at the beginning of the period. The difference is the share of earnings or losses attributable to the equity method investment.

Under the equity method, if there is a commitment for the Company to fund the losses of its equity method investees, the Company would continue to record its share of losses resulting in a negative equity method investment, which would be presented as a liability on the consolidated balance sheet. Commitments may be explicit and may include formal guarantees, legal obligations, or arrangements by contract. Implicit commitments may arise from reputational expectations, intercompany relationships, statements by the Company of its intention to provide support, a history of providing financial support or other facts and circumstances. When the Company has no commitment to fund the losses of its equity method investees, the carrying value of its equity method investments will not be reduced below zero. The Company had no commitment to fund additional losses of its equity method investments during the years ended December 31, 2022, 2021 and 2020, other than dissolution costs for Joyn Bio, LLC (see Note 3 and 6).

The Company evaluates its equity method investments for impairment whenever events or circumstances indicate that the carrying value of the investment may not be recoverable. The Company considers the investee’s financial position, forecasts and economic outlook, and the estimated duration and extent of losses to determine whether a recovery is anticipated. An impairment that is other-than-temporary is recognized in the period identified. The Company has not recognized an impairment loss related to its equity method investments for the years ended December 31, 2022, 2021 and 2020. Refer to

Note 21 for further discussion regarding the potential impacts of the closure of Silicon Valley Bank to the Company’s equity method investments.

The Company may elect the fair value option for its equity method investments on an investment-by-investment basis. For all equity method investments accounted for under the fair value option, the Company carries the equity method investment at fair value and records all subsequent changes in fair value as a component of loss on equity method investments in the consolidated statements of operations and comprehensive loss.

Investments

Investments include warrants, marketable equity securities in publicly-traded companies, non-marketable equity securities in privately-held companies and Simple Agreement for Future Equity (“SAFEs”), in each case, in which the Company does not possess the ability to exercise significant influence over the investee.

Investments in warrants and marketable equity securities of publicly-traded companies are measured at fair value with subsequent changes in fair value recorded in loss on investments in the consolidated statements of operations and comprehensive loss.

Investments in non-marketable equity securities of privately-held companies and SAFEs, which do not have readily determinable fair values, are carried at cost, less any impairments, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Each period the Company assesses relevant transactions to identify observable price changes, and the Company regularly monitors these investments to evaluate whether there is an indication of impairment. The Company evaluates whether an investment’s fair value is less than its carrying value using an estimate of fair value, if such an estimate is available. For periods in which there is no estimate of fair value, the Company evaluates whether an event or change in circumstances has occurred that may have a significant adverse effect on the value of the investment. The Company has not recognized any upward or downward adjustments resulting from observable price changes in identical or similar investments for the years ended December 31, 2022, 2021 and 2020. Refer to Note 21 for further discussion regarding the potential impacts of the closure of Silicon Valley Bank to the Company’s investments.

Fair Value Measurements

The Company categorizes its assets and liabilities measured at fair value in accordance with the authoritative accounting guidance that establishes a consistent framework for measuring fair value and requires disclosures for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis.

ASC 820, Fair Value Measurement (“ASC 820”), establishes a fair value hierarchy for instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances.

ASC 820 identifies fair value as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a three-tier fair value hierarchy that distinguishes among the following:

Level 1- Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2- Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and
Level 3- Unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing.

To the extent that the valuation is based on models or inputs that are either less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in

determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The Company valued its money market fund holdings, notes receivable, marketable equity securities, warrant liabilities and contingent consideration liability at fair value on a recurring basis. The carrying amounts of the Company’s other financial instruments, which include accounts receivable, certain prepaid expenses and other current assets, accounts payable and accrued expenses and other current liabilities approximate their fair values due to their short-term nature.

Impairment of Long-Lived Assets

The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability is measured by comparing the book values of the assets to the expected future net undiscounted cash flows that the assets are expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the book values of the assets exceed their fair value. The Company has not recognized an impairment loss for the years ended December 31, 2022, 2021 and 2020.

Business Combinations

The Company accounts for business combinations using the acquisition method of accounting. The Company recognizes the identifiable assets acquired and liabilities assumed at their acquisition-date fair values and recognizes any excess of the total consideration paid over the fair value of the identifiable net assets as goodwill. Any purchase price that is considered contingent consideration is measured at its estimated fair value at the acquisition date and remeasured at each reporting period, with changes in estimated fair value recorded in general and administrative expenses on the consolidated statements of operations and comprehensive loss. Acquisition transaction costs are expensed when incurred. The operating results of an acquisition are included in the Company’s consolidated financial statements as of the acquisition date.

Intangible Assets, net

Intangible assets, net consist of certain definite-lived assets including patents, processes and know-how related to technology acquired through business combinations. The Company amortizes such intangible assets on a straight-line basis over their estimated useful life.

The Company reviews intangible assets for impairment whenever events or changes in circumstances have occurred which could indicate that the carrying value of the assets are not recoverable. Recoverability is measured by comparing the carrying value of the intangible assets to the future undiscounted cash flows expected to be generated by the asset. In determining the expected future cash flows, the Company uses assumptions believed to be reasonable, but which are unpredictable and inherently uncertain. Actual future cash flows may differ from the estimates used in impairment testing. The Company recognizes an impairment loss when and to the extent that the estimated fair value of an intangible asset is less than its carrying value. The Company has not recognized an impairment loss for the years ended December 31, 2022, 2021 and 2020.

Goodwill

Goodwill represents the excess of acquisition cost over the fair market value of the net assets acquired. Goodwill is tested for impairment on an annual basis during the fourth quarter or whenever events or changes in circumstances indicate the carrying amount may not be recoverable. The Company considers various qualitative factors that could indicate impairment such as macroeconomic conditions, industry and market environment, technological obsolescence, overall financial performance of the Company, cash flow from operating activities and market capitalization. If the qualitative assessment indicates that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, the Company performs a quantitative assessment to compare the fair value of the reporting unit to its carrying value, including goodwill. If the carrying value of the reporting unit exceeds the fair value, an impairment loss is recognized. A combination of the income approach and the market approach may be used to determine fair value of the reporting unit. The Company has not recognized an impairment loss for the years ended December 31, 2022, 2021 and 2020.

Leases

The Company determines if an arrangement is or contains a lease at contract inception based on the terms and conditions in the contract. A contract contains a lease if there is an identified asset and the Company has the right to control the asset. For

leases with terms greater than 12 months, the Company recognizes a right-of-use asset (“ROU asset”) and a lease liability as of the lease commencement date on the balance sheet. ROU assets represent the Company’s right to use an underlying asset over the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease ROU assets and liabilities are measured based on the present value of fixed lease payments that are unpaid as of the lease commencement date. The Company’s ROU assets balance is reduced by any prepaid rent balances, initial direct costs and lease incentives received or expected to be received. Some of the Company's leases include options to extend or terminate the lease; these options are included in the lease term for calculations of its ROU assets and liabilities when it is reasonably certain that the Company will exercise those options.

The Company’s leases are classified as either operating or finance, as determined at inception, with the classification affecting the pattern of expense recognition in the statement of operations. A lease is classified as a finance lease if risks and rewards are conveyed without the transfer of control. For operating leases, expense is generally recognized on a straight-line basis over the lease term. For finance leases, interest on the lease liability is recognized using the effective interest method, while the ROU asset is amortized on a straight-line basis from the commencement date to the earlier of the end of the useful life of the ROU asset or the end of the lease term. Leases with an initial term of 12 months or less which meet the definition of a short-term lease are not recorded on the balance sheet and the lease expense for these leases is recognized on a straight-line basis over the lease term. In limited instances, the Company acts as a lessor, primarily with certain real estate subleases. Finance leases, short-term leases and subleases are not a significant component of the Company's financial condition or results of operations. The current portion of the Company’s operating lease liabilities is included in accrued expenses and other current liabilities on the balance sheet.

The Company has lease agreements with both lease and non-lease components (such as real estate taxes, insurance and common area maintenance charges) and has elected the practical expedient to combine these lease and non-lease components for its real estate leases and non-lab equipment leases. The Company has not elected this practical expedient for lab equipment leases and the lease and non-lease components are accounted for separately. Non-lease components are typically variable in nature and are recognized as lease expense in the period in which they arise.

As most of the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments and uses the implicit rate when readily determinable. The Company’s incremental borrowing rate is based on management’s estimate of the rate of interest the Company would have to pay to borrow on a fully collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

Deferred Rent

Prior to the adoption of ASC 842, deferred rent represented the difference between cash paid and rent expense recognized on a straight-line basis for the facilities that the Company occupied under operating leases. The Company classified the current portion of deferred rent as a component of accrued expenses and other current liabilities on the consolidated balance sheet.

Revenue Recognition

The Company accounts for revenue in accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”). Under ASC 606, the Company recognizes revenue when the customer obtains control of the promised goods or services at an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer, (ii) identify the promises and distinct performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligations.

Foundry Revenue

The Company generates license and service revenue through the execution of license and collaboration agreements whereby customers obtain license rights to the Company’s proprietary technology and intellectual property for use in the research, development and commercialization of engineered organisms, and derived products. Under these agreements, the Company typically provides research and development services, which includes the provision of a license to the Company’s intellectual property. Additionally, the customer obtains license rights to the output of the Company’s services in order to commercialize the resulting output of such services. Generally, the terms of these agreements provide that the Company receives some combination of: (1) Foundry usage fees in the form of (i) upfront payments upon consummation of the agreement or other fixed payments, (ii) reimbursement for costs incurred for research and development services and (iii) milestone payments

upon the achievement of specified technical criteria, plus (2) downstream value share payments in the form of (i) milestone payments upon the achievement of specified commercial criteria, (ii) royalties on sales of products from or comprising engineered organisms arising from the collaboration or licensing agreement and (iii) royalties related to cost of goods sold reductions realized by customers.

The Company’s collaboration and licensing agreements often contain multiple promises, including (i) licenses and assignments of intellectual property and materials and (ii) research and development services, and the Company determines whether each of the promises is a distinct performance obligation based on the nature of each agreement. As the Company is generally performing research and development services that are highly integrated and interrelated to the licenses and assignments of intellectual property and materials, the promises are generally inseparable. As such, the Company typically combines the research and development services, licenses, and assignments into a single performance obligation. However, for certain agreements, the Company only grants licenses or effects such transfers and assignments upon the successful completion of the research and development services or delivery of a developed product. For these agreements, the Company typically considers (i) the research and development services and (ii) the licenses, transfers, and assignments as distinct performance obligations, as each is transferred separately and has a separately identifiable benefit.

Options to acquire additional goods and services are evaluated to determine if such options provide a material right to the counterparty that it would not have received without entering into the contract. If so, the option is accounted for as a separate performance obligation. If not, the option is considered a marketing offer which is accounted for as a separate contract upon the counterparty’s election.

At contract inception, the Company determines the transaction price, including fixed consideration and any estimated amounts of variable consideration. Any upfront cash payment received upon consummation of the agreement is fixed and generally non-refundable. Variable consideration is subject to a constraint, and amounts are included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Variable consideration may include reimbursement for costs incurred for the Company’s research and development efforts, milestone payments upon the achievement of certain technical and commercial criteria, and royalties on sales of products from or comprising engineered organisms arising from the agreement. With respect to the research and development reimbursements and milestone payments, the Company uses the most likely amount method to estimate variable consideration. With respect to agreements that include royalties on sales or other contingent payments based on sales, the Company applies the royalty recognition constraint which requires a constraint until the royalty or value-sharing transaction occurs.

Certain agreements contain payment in the form of shares of equity securities or other financial instruments that are convertible into equity upon a triggering event. Any non-cash consideration is measured at the estimated fair value of the non-cash consideration at contract inception. For equity securities and financial instruments received that are not actively traded, the Company generally engages a third-party valuation specialist to determine the estimated fair value of the upfront non-cash consideration. The fair value is generally determined based on a recent round of financing or by using a scenario-based valuation model. Significant unobservable inputs are used in the fair value measurements including expectations regarding future financings of the customer, scenario dates and probabilities, expected volatility, discount rates and recovery rates. Changes in these assumptions can materially affect the value of the non-cash consideration at contract inception and, accordingly, the total amount of revenue recognized for the contract.

For agreements with promises that are combined into a single performance obligation, the entire transaction price is allocated to the single performance obligation. For agreements with multiple performance obligations, the transaction price is allocated to the performance obligations using the relative standalone selling price methodology. For agreements featuring variable consideration, the Company allocates variable consideration to one or more, but not all, performance obligations if certain conditions are met. Specifically, the Company assesses whether the variable consideration relates solely to its efforts to satisfy the performance obligation and whether allocating such variable consideration entirely to the performance obligation is consistent with the overall allocation objective. If these conditions are not met, the Company allocates the variable consideration based on the relative standalone selling price methodology. The key assumptions utilized in determining the standalone selling price for each performance obligation include development timelines, estimated research and development costs, commercial markets, likelihood of exercise (in the case of options considered to be material rights), and probabilities of success.

For agreements where the licenses or assignments are considered separate performance obligations or represent the only performance obligation, the Company recognizes revenue at the point in time that the Company effectively grants the license

as the licenses or assignments represent functional intellectual property. For agreements where the licenses and the research and development services represent a combined performance obligation, the Company recognizes revenue over the period of performance using a measure of progress based on costs incurred to date as compared to total estimated costs.

The Company evaluates its measure of progress to recognize revenue at each reporting period and, as necessary, adjusts the measure of progress and related revenue recognition. The Company’s measure of progress and revenue recognition involves significant judgment and assumptions, including, but not limited to, estimated costs and timelines to complete its performance obligations. The Company evaluates contract modifications and amendments to determine whether any changes should be accounted for prospectively or on a cumulative catch-up basis. The Company utilizes the right to invoice practical expedient when it has a right to consideration in an amount that corresponds directly with the value of the Company’s performance to date.

Royalties are recognized as revenue when sales have occurred as the Company applies the sales or usage-based royalties recognition constraint. The Company has determined the application of this exception is appropriate because the license granted in the agreement is the predominant item to which the royalties relate.

As the Company receives upfront payments for technical services under certain of its arrangements, the Company evaluates whether any significant financing components exist given the term over which the fees will be earned may exceed one year. Based on the nature of the Company’s agreements, there are no significant financing components as the purpose of the upfront payment is not to provide financing, but rather to secure technical services, exclusivity rights, and Foundry capacity, or the timing of transfer of those goods or services is at the discretion of the customer.

Deferred revenue represents consideration received by the Company in excess of revenue recognized and primarily results from transactions where the Company receives upfront payments and non-cash equity consideration. In instances where the Company has received consideration in advance for an undefined number of technical development plans (“TDPs”) under its customer agreements, the Company records the advance payments as deferred revenue, net of current portion on the consolidated balance sheet. Upon the execution of a specific TDP, the Company reclassifies the estimated consideration to be earned under that TDP within the next twelve months as current deferred revenue. The Company also classifies unexercised material rights related to future TDPs as deferred revenue, net of current portion on the consolidated balance sheet. When a TDP is executed, and the material right is exercised, the amount allocated to the material right, which will be earned within the next twelve months, is reclassified to current deferred revenue. All other deferred revenue is classified as current or non-current based on the timing of when the Company expects to earn the underlying revenue based upon the projected progress of activities under the TDP.

Collaboration Arrangements

For arrangements that do not represent contracts with a customer, the Company analyzes its collaboration transactions to assess whether they are within the scope of ASC 808, Collaborative Arrangements (“ASC 808”), to determine whether such arrangements involve joint operating activities performed by parties that are both active participants in the activities and exposed to significant risks and rewards that are dependent on the commercial success of such activities. To the extent the arrangement is within the scope of ASC 808, the Company assesses whether aspects of the arrangement between the Company and its collaboration partner are within the scope of other accounting literature. If the Company concludes that some or all aspects of the arrangement represent a transaction with a customer, the Company accounts for those aspects of the arrangement within the scope of ASC 606.

Biosecurity Revenue

In 2020, the Company launched its commercial offering of COVID-19 testing products and services for businesses, academic institutions, and other organizations in which the Company generates product and service revenue. Beginning in the first quarter of 2021, the Company launched its pooled testing initiative which focuses on providing end-to-end COVID-19 testing services to public health authorities. The Company currently offers pooled testing and reporting services for K-12 schools across the United States, at airports through its partnership with XpresCheck and the CDC, as well as through other congregate settings such as its partnership with Eurofins. The Company sells COVID-19 test kits on a standalone basis or as part of an end-to-end testing service. The Company records product revenue from sales of LFA, PCR, and pooled test kits. The Company records service revenue from sales of its end-to-end COVID-19 testing services, which consist of multiple promised goods and services including sample collection kits, physician authorizations, onsite test administration, outsourced

laboratory PCR analysis, and access to results reported through the Company’s proprietary web-based portal. The Company recognizes its product and service revenue using the five-step model under ASC 606.

 

Product revenue is recognized when the test kits are shipped and risk of loss is transferred to the carrier. The Company’s test kits are generally not subject to a customer right of return except for product recalls under the rules and regulations of the U.S. Food and Drug Administration (“FDA”). The Company has elected to include shipping and handling fees billed to customers as a component of Biosecurity revenue.

 

Service revenue from the Company’s end-to-end COVID-19 testing services is recognized upon completion of the tests and release of the test results on the web-based portal. The Company has identified one performance obligation in its testing services contracts that represents a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer, with each test as a distinct service within the series. As the price for the testing services is fixed under each customer contract, the Company has elected the practical expedient to recognize revenue at the amount to which it has the right to invoice for services performed. The Company’s testing services contracts are generally one year or less in length and contain fixed unit pricing. Under typical payment terms for testing services, amounts are billed monthly in arrears for services performed or in advance based on contractual billing terms.

Cost of Biosecurity Revenue

Cost of Biosecurity product revenue consists of costs associated with the sale of diagnostic and sample collection test kits which includes costs paid to purchase test kits from third parties. Cost of Biosecurity service revenue consists of costs associated with the provision of the Company’s end-to-end COVID-19 testing services, which includes costs paid to provide sample collection kits, physician authorizations, onsite test administration, outsourced laboratory PCR analysis, access to results reported through a web-based portal and reporting of results to public health authorities.

Research and Development Costs

Research and development costs are expensed as incurred. Research and development costs consist of direct and indirect internal costs related to specific projects and initiatives, acquired intellectual property deemed to be in-process research and development, as well as fees paid to other entities that conduct certain research and development activities on the Company’s behalf.

Patent Costs

The Company expenses all costs as incurred in connection with the filing, prosecution, maintenance, defense, and enforcement of patent applications, including direct application fees and related legal and consulting expenses. Patent costs are included in general and administrative expenses within the consolidated statements of operations and comprehensive loss.

Stock-Based Compensation

The Company measures and recognizes compensation expense for all stock-based awards based on estimated grant-date fair values recognized over the requisite service period. For awards that vest solely based on a service condition, the Company recognizes compensation expense on a straight-line basis over the requisite service period. For awards that vest based on multiple conditions, the Company recognizes compensation expense using the accelerated attribution method on a tranche-by-tranche basis over the requisite service period such that the amount of compensation expense recognized at each reporting period is at least equal to the vested tranches at that date. For awards with a performance-based vesting condition, the Company recognizes stock-based compensation when achievement of the performance condition is deemed probable, and upon achieving a performance condition that was not previously considered as probable, records a cumulative catch-up adjustment to reflect the portion of the grantee’s requisite service that has been provided to date. For awards with market conditions, the compensation expense recognized over the requisite service period is not reversed if the market condition is not satisfied. The Company recognizes forfeitures as they occur.

 

The Company estimates the grant date fair value of stock options using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires the input of subjective assumptions, including fair value of common stock (for options granted prior to the SRNG Business Combination), expected term, expected volatility, risk-free interest rate and expected dividend yield. The expected term is determined using the “simplified” method, which estimates the expected term as the average of the vesting term plus the contractual term. The Company uses the “simplified” method as it does not have

sufficient historical data regarding employee exercise behavior. Expected volatility is based on the historical volatility of the stock prices of similar publicly traded peer companies. The risk-free interest rate is based on the yield available on U.S. Treasury zero-coupon issues similar in duration to the expected term of the stock options. The Company has not paid, and does not expect to pay, dividends in the foreseeable future.

 

For awards with market conditions, the Company determines the grant date fair value using a Monte Carlo simulation model, which incorporates various assumptions including expected stock price volatility, risk-free interest rates, expected term, and expected dividend yield. The Company determines expected volatility using the historical volatility of the stock prices of similar publicly traded peer companies. The risk-free interest rate is based on the yield available on U.S. Treasury zero-coupon issues similar in duration to the expected term of the awards. The expected term is equal to the contractual term and a dividend yield of zero is assumed.

 

For awards granted prior to the SRNG Business Combination, the Company utilized the hybrid method to estimate the grant date fair value of its common stock underlying its stock-based awards. The hybrid method is a probability-weighted expected return method (“PWERM”) where the equity value in at least one scenario is allocated using an option pricing method (“OPM”). Under the PWERM, the value of the common stock is estimated based on the probability-weighted present value of expected future investment returns considering various liquidity events and the rights and privileges of each class of equity. Under the OPM, each class of stock is treated as a call option on the Company’s equity value, with exercise prices based on the liquidation preferences of the convertible preferred stock. The Black-Scholes model is used to price the call options which includes assumptions for the time to liquidity and volatility of equity value. A discount for lack of marketability is then applied to the common stock value. There are significant judgments and estimates inherent in determining the fair value of the common stock. These judgments and estimates include factors, both subjective and objective, including: (i) a discount for lack of marketability; (ii) external market data; (iii) historical activity by the Company in selling equity to outside investors; (iv) the Company’s stage of development; (v) rights and preferences of the Company’s equity securities that rank senior to common stock; and (vi) the likelihood of various liquidity events, among others. Changes to these assumptions could result in different fair values of common stock.

Income Taxes

The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the consolidated financial statements or in the Company’s tax returns. Under this method, deferred tax assets and liabilities are determined based on differences between the financial statement carrying amounts and the tax bases of the assets and liabilities using the enacted tax rates in effect in the years in which the differences are expected to reverse. A valuation allowance against deferred tax assets is recorded if, based on the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Potential for recovery of deferred tax assets is evaluated by considering several factors, including estimating the future taxable profits expected, estimating future reversals of existing taxable temporary differences, considering taxable profits in carryback periods, and considering prudent and feasible tax planning strategies.

The Company accounts for uncertain tax positions using a more-likely-than-not threshold for recognizing and resolving uncertain tax positions. The evaluation of uncertain tax positions is based on factors including, but not limited to, changes in the law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, new audit activity, and changes in facts or circumstances related to a tax position. The Company evaluates uncertain tax positions on an annual basis and adjusts the level of the liability to reflect any subsequent changes in the relevant facts surrounding the uncertain positions. The Company accounts for interest and penalties related to uncertain tax positions as part of its provision for income taxes. As of December 31, 2022 and 2021, the Company did not have any uncertain tax positions and no accrued interest or penalties related to uncertain tax positions. The Company does not expect a material change in unrecognized tax benefits in the next twelve months.

 

Warrant Liabilities

The Company classifies Private Placement Warrants and Public Warrants (both defined and discussed in Note 9) as liabilities. At the end of each reporting period, changes in fair value during the period are recognized as change in fair value of warrant liabilities on the consolidated statements of operations and comprehensive loss. The Company will continue to adjust the warrant liability for changes in the fair value until the earlier of (a) the exercise or expiration of the warrants or (b) the redemption of the warrants, at which time the warrants will be reclassified to additional paid-in capital.

Foreign Currency Translation

The functional currency of the Company's foreign subsidiaries is their local currency. The Company translates the non-United States dollar-denominated assets and liabilities using the exchange rates prevailing at the end of each reporting period and translates revenues and expenses using the average exchange rates in the reporting period. Foreign currency translation adjustments are recorded as a component of other comprehensive loss on the consolidated statements of operations and comprehensive loss and accumulated in other comprehensive loss in stockholders equity.

Comprehensive Loss

Comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Other comprehensive loss consists of foreign currency translation adjustments.

Net Loss per Share

The Company follows the two-class method when computing net loss per share attributable to Ginkgo Bioworks Holdings, Inc. common stockholders as the Company has issued shares that meet the definition of participating securities. The two-class method determines net loss per share for each class of common and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires earnings for the period to be allocated between common and participating securities based upon their respective rights to share in the earnings as if all earnings for the period had been distributed. During periods of loss, there is no allocation required under the two-class method since the participating securities do not have a contractual obligation to fund the losses of the Company.

Basic net loss per share is computed by dividing the net loss attributable to Ginkgo Bioworks Holdings, Inc. common stockholders by the weighted average number of common shares outstanding for the period. Diluted net loss per share is equal to the net loss attributable to Ginkgo Bioworks Holdings, Inc. common stockholders less the gain (if any) on the change in fair value of warrant liabilities, divided by the weighted average number of common shares outstanding for the period, including the effect of potentially dilutive common shares. For purposes of this calculation, outstanding options to purchase shares of common stock, unvested restricted stock awards, unvested restricted stock units, warrants to purchase shares of common stock and contingently issued earnout shares are considered potentially dilutive common shares.

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842): Amendments to the FASB Accounting Standards Codification, which has been clarified and amended by various subsequent updates. ASC 842 requires lessees to record a right-of-use asset and a lease liability on the balance sheet for all leases with a lease term of more than 12 months. ASC 842 also requires additional disclosures about the amount, timing and uncertainty of cash flows arising from leases. The Company adopted ASC 842 on January 1, 2022 (the "effective date"), using the modified retrospective approach with a cumulative-effect adjustment to the opening balance of accumulated deficit in the period of adoption. The Company has elected to apply the package of practical expedients that allows for not reassessing (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification of any expired or existing leases, and (iii) the accounting for initial direct costs for any existing leases. The Company has also elected, by class of underlying asset, not to apply the recognition requirements of ASC 842 to short-term leases.

Upon adoption of ASC 842 on January 1, 2022, the Company (i) recognized $147.7 million of operating lease ROU assets and $166.7 million of operating lease liabilities, (ii) reclassified the previously recognized liabilities for deferred rent of $8.5 million and lease incentives of $10.5 million to operating lease ROU assets, (iii) derecognized build-to-suit assets of $17.8 million previously presented within property, plant, and equipment, net, derecognized the build-to-suit lease financing obligation of $22.6 million, and (iv) recorded a cumulative-effect adjustment of $5.2 million to accumulated deficit as of January 1, 2022. Finance leases are not significant to the Company’s financials. The adoption of ASC 842 did not have a material impact on the Company's results of operations and cash flows.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and subsequently issued multiple amendments to the standard (collectively, “ASU 2016-13”). The provisions of ASU 2016-13 modify the impairment model to utilize an expected loss model in place of the incurred loss model and require a consideration of a broader range of reasonable and supportable information to inform credit loss

estimates. The Company adopted ASU 2016-13 effective January 1, 2022. The adoption of ASU 2016-13 did not have a material impact on the Company's consolidated financial statements and related disclosures.

In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”). The provisions of ASU 2019-12 eliminate certain exceptions related to the approach for intraperiod tax allocation and deferred tax liabilities for outside basis differences and clarify when a step-up in the tax basis of goodwill should be considered part of a business combination or a separate transaction. It also clarifies and simplifies other aspects of the accounting for income taxes. The Company adopted ASU 2019-12 on January 1, 2022. The adoption of ASU 2019-12 did not have a material impact on the Company's consolidated financial statements and related disclosures.

In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)—Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the FASB Emerging Issues Task Force) (“ASU 2020-01”). ASU 2020-01 addresses accounting for the transition into and out of the equity method and clarifies the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. The Company adopted ASU 2020-01 on January 1, 2022. The adoption of ASU 2020-01 did not have a material impact on the Company's consolidated financial statements and related disclosures.

 

In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance ("ASU 2021-10"). This update requires annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy including: (1) the types of transactions; (2) the accounting for the transactions; and (3) the effect of the transactions on a business entity’s financial statements. The Company adopted ASU 2021-10 on January 1, 2022. The adoption of ASU 2021-10 did not have a material impact on the Company's consolidated financial statements and related disclosures.

Recently Issued Accounting Pronouncements

In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. This standard clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security, and therefore is not considered in measuring fair value. It also introduces required disclosures for equity securities subject to contractual sale restrictions. This standard becomes effective for the Company on January 1, 2024, with early adoption permitted. The Company is considering the impact of this pronouncement on the financial statements.

 

In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging- Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) which simplifies the accounting for convertible instruments by reducing the number of accounting models and the number of embedded conversion features that could be recognized separately from the host contract. Additionally, ASU 2020-06 removes certain settlement conditions that are required for contracts in an entity's own equity to qualify for the derivatives scope exception. The guidance also modifies diluted earnings per share calculations by requiring entities to use the if-converted method for convertible instruments and to assume share settlement when an instrument can be settled in cash or shares. The guidance is effective for the Company on January 1, 2024 with early adoption permitted. The Company is currently evaluating the impact that the implementation of this standard will have on its consolidated financial statements and related disclosures.

v3.22.4
Business Combinations and Acquisitions
12 Months Ended
Dec. 31, 2022
Business Combinations [Abstract]  
Business Combination

3. Business Combinations and Acquisitions

Fiscal 2022 Acquisitions

Zymergen

On October 19, 2022 (the “Zymergen Closing Date”), the Company acquired all of the outstanding equity of Zymergen Inc. (“Zymergen”), a company that specializes in integrating computational and manufacturing technologies to design, develop, and commercialize bio-based breakthrough products in a broad range of industries (the “Zymergen Acquisition”). The Zymergen Acquisition is expected to enhance the Company’s platform for cell programming by integrating strong automation and software capabilities as well as providing a wealth of experience across diverse biological engineering approaches. Under the merger agreement (“Agreement and Plan of Merger”), on the Zymergen Closing Date, each share of Zymergen common stock that was issued and outstanding as of immediately prior to the effective time was automatically

cancelled, extinguished and converted into the right to receive 0.9179 shares of the Company’s Class A common stock and cash in lieu of any fractional shares.

The following table summarizes the acquisition date fair value of the consideration transferred for Zymergen (in thousands):

 

Fair value of Class A common stock issued to Zymergen shareholders (1)

 

$

236,331

 

Fair value of replacement Ginkgo RSUs and Ginkgo Class A common stock issued under Zymergen RIFs attributable to pre-combination services (2)

 

 

1,571

 

Less: Cash severance and retention bonuses incurred for the benefit of the combined company (3)

 

 

(6,152

)

Total Zymergen consideration

 

$

231,750

 

 

(1)

As consideration for the Zymergen Acquisition, the Company delivered to Zymergen stockholders 99,422,907 shares of its Class A common stock, of which approximately 96,859,594 represents consideration transferred for the Zymergen Acquisition under ASC 805. The fair value of the Company’s Class A common stock issued as consideration transferred was determined based on $2.44 per share, which was the closing price of the Company’s Class A common stock on the Zymergen Closing Date. An immaterial amount related to the incremental value received by the holders of Zymergen stock options was excluded from total consideration transferred and recognized as post-combination compensation expense.

(2)

Represents the fair value of the replacement Ginkgo RSUs and Ginkgo Class A common stock issued under the Zymergen RIFs attributable to pre-combination services. The remaining portion of the fair value is associated with future service and will be recognized as stock-based compensation expense in the period subsequent to the Zymergen Acquisition over the remaining service period.

(3)

Represents cash bonuses payable to Zymergen employees in accordance with Zymergen severance and retention plans at the Zymergen Closing Date. These payments were determined to be for the benefit of the combined company, and accordingly, a portion of the fair value otherwise recognized as consideration transferred was allocated to post-combination compensation expense.

 

The Zymergen Acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations ("ASC 805"). The Company allocated the consideration transferred to the tangible and identifiable intangible assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition date. The excess consideration transferred was recorded as goodwill, none of which is expected to be deductible for tax purposes. The goodwill is primarily attributed to Zymergen’s assembled workforce and the expected synergies from combining operations and has been assigned to the Foundry segment.

 

The following table summarizes the preliminary acquisition date fair value of the consideration transferred for Zymergen (in thousands):

 

Cash and cash equivalents

 

$

150,553

 

Accounts receivable

 

 

980

 

Inventory

 

 

1,166

 

Prepaid expenses and other current assets

 

 

11,592

 

Property and equipment

 

 

97,194

 

Operating lease right-of-use assets

 

 

205,349

 

Intangible assets

 

 

18,600

 

Goodwill

 

 

12,874

 

Other non-current assets

 

 

11,898

 

Accounts payable

 

 

(13,907

)

Deferred revenue

 

 

(8,189

)

Accrued expenses and other current liabilities

 

 

(55,917

)

Operating lease liabilities

 

 

(194,582

)

Deferred tax liability

 

 

(5,690

)

Other non-current liabilities

 

 

(171

)

Net assets acquired

 

$

231,750

 

 

The allocation of the purchase price, including the valuation of certain tangible and intangible assets acquired and the related tax effects, is preliminary and subject to revision during the one-year measurement period from the date of acquisition if any new information is obtained about facts and circumstances that existed as of the acquisition date.

The fair value of intangible assets was determined using the relief from royalty method of the income approach. The fair value measurements were primarily based on significant inputs not observable in the market and thus represent a Level 3 measurement. The significant inputs used included the estimated annual net cash flows (including projected revenues attributable to the asset, royalty rates and obsolescence rates), and the discount rate that reflects the risks inherent in the future cash flows. Property and equipment is mostly comprised of lab equipment, leasehold improvements and construction in progress. The fair value of property and equipment was primarily determined using the cost approach, which estimates fair value by determining the replacement or reproduction cost of an asset of comparable utility, adjusted for loss in value due to depreciation and economic obsolescence.

Based on the preliminary valuation, intangible assets are as follows (in thousands):

 

 

 

Estimated fair value

 

 

Estimated useful life (in years)

 

Developed technology

 

$

14,900

 

 

 

10

 

Database

 

 

3,700

 

 

 

7

 

Total

 

$

18,600

 

 

 

 

 

In conjunction with the Agreement and Plan of Merger, Zymergen initiated a reduction-in-workforce implemented in stages (each a “RIF”) for the benefit of the combined company. Under the RIFs, employees received enhanced severance benefits consisting of cash bonuses and accelerated vesting of their outstanding Zymergen restricted stock units ("Zymergen RSU"). These benefits were triggered upon a change in control occurring within twelve months of the employee’s termination date. The Company recognized $11.1 million in cash-based severance and stock-based compensation costs in the consolidated statements of operations and comprehensive loss for the year ended December 31, 2022 related to RIFs.

In August and September 2022, Zymergen also approved the grant of retention bonuses to certain employees denominated in cash and/or Zymergen RSUs designed to retain and reward key talent of Zymergen during the pendency of the proposed Zymergen Acquisition and thereafter. These retention bonuses were deemed for the benefit of the combined company. A portion of the retention bonuses vested and became payable upon the closing of the Zymergen Acquisition, with the remaining portion recognized as post-combination compensation expense over the requisite service period. The Company recognized $7.4 million in cash-based retention and stock-based compensation costs in the consolidated statements of operations and comprehensive loss for the year ended December 31, 2022.

The Company’s revenue and net loss for the year ended December 31, 2022 included $2.2 million and $26.0 million, respectively, from Zymergen since the Zymergen Closing Date.

The Company incurred transaction and integration costs of $11.9 million which were recorded in general and administrative expenses, inclusive of a success fee which was partly paid in 327,289 shares of Ginkgo Class A common stock. Additionally, the Company incurred $1.7 million of equity issuance costs, which were recorded in additional paid-in capital in the consolidated balance sheet.

 

Supplemental Pro Forma Information (unaudited)

The following supplemental pro forma financial information presents the combined results of operations of the Company and Zymergen as if the acquisition had occurred on January 1, 2021. The pro forma financial information is presented for informational purposes only and is not necessarily indicative of the operating results that would have been realized if the Zymergen Acquisition had been completed on January 1, 2021, or of future operating results. The pro forma financial information reflects pro forma adjustments to give effect to certain events the Company believes to be directly attributable to the Zymergen Acquisition, including depreciation and amortization expense related to acquired tangible and intangible assets, acquisition-related costs, stock-based compensation expense, retention and severance bonuses, and adjustments to align inventory and leasing accounting policies.

 

 

 

Year Ended December 31,

 

(in thousands)

 

2022

 

 

2021

 

Total revenue

 

$

489,670

 

 

$

330,580

 

Net loss

 

$

(2,366,005

)

 

$

(2,235,586

)

 

Bayer Acquisition and Joint Venture Dissolution

On October 17, 2022, the Company completed an asset purchase under the Asset Purchase Agreement (“APA”) with Bayer CropScience LP, a Delaware limited partnership (“Bayer”). Pursuant to the APA, the Company acquired certain assets and liabilities of Bayer, including Bayer’s 175,000-square-foot West Sacramento Biologics Research & Development site, team, and internal discovery and lead optimization platform.

 

Concurrently with the APA, Bayer and Ginkgo entered into the Joint Venture Termination Agreement (“JV Termination Agreement”) and the Technical Development Agreement (“Bayer TDA”). The JV Termination Agreement initiated the dissolution of Joyn Bio, LLC (“Joyn”), the joint venture created by Ginkgo and Bayer in 2017, and provided for the disbursement of contributed intellectual property back to the respective owners, the disbursement of joint ownership of certain intellectual property rights created by Joyn, including with respect to Joyn’s nitrogen fixation technology to each party, the disbursement of property and equipment as agreed to by the parties, the assumption by Ginkgo of Joyn's two real estate leases and the transfer of certain employees to Ginkgo. Under the Bayer TDA, (i) Ginkgo will grant Bayer exclusive licenses to Ginkgo’s joint ownership right, title and interest to Joyn’s nitrogen fixation intellectual property, (ii) for a three-year period, the parties will research, develop and produce microbial strains and related processes to enable the research, development, production, manufacturing and commercialization of Bayer products in agriculture as part of cell programs pursuant to TDPs agreed to by the parties, including one targeted to nitrogen fixation and (iii) for a three-year period, Ginkgo will provide certain non-cell-engineering services to Bayer related to product support as described in statements of work agreed to by the parties. In consideration for all programs, services and related licenses, Ginkgo will receive $90.0 million in equal quarterly installments over the three-year term plus royalties on worldwide net sales of certain Bayer products developed under the Bayer TDA.

 

The APA, JV Termination Agreement and Bayer TDA were accounted for as a single transaction as they were entered into at the same time and in contemplation of one another, the occurrence of each agreement was dependent on the occurrence of the other agreements, and the work performed under the Bayer TDA will utilize the tangible assets acquired from Bayer under the APA and the IP distributed to Ginkgo under the JV Termination Agreement.

 

The assets acquired under the APA and JV Termination Agreement meet the definition of a business and were accounted for under ASC 805. The Bayer TDA was accounted for under ASC 606. A summary of the purchase price relating to the business combination is as follows (in thousands):

Cash

 

$

79,825

 

Fair value of previously held equity interest in Joyn

 

 

14,000

 

Fair value of notes receivable from Joyn

 

 

10,119

 

Total purchase consideration

 

$

103,944

 

Prior to the completion of the business combination, the Company, through its majority-owned holding company Cooksonia, LLC (“Cooksonia”), held a 50% equity interest in Joyn that was accounted for as an equity method investment. The Company remeasured its 50% equity interest in Joyn at fair value as of the acquisition date and recorded a gain of $14.0 million equal to the difference between the carrying value of its equity method investment in Joyn of zero and the fair value of $14.0 million on the acquisition date. The gain is included within loss on equity method investments in the consolidated statements of operations and comprehensive loss for the year ended December 31, 2022. Additionally, prior to the completion of the business combination, Joyn had issued to Ginkgo a series of convertible promissory notes in the aggregate principal amount of $10.0 million (see Note 20). The notes were effectively settled as part of the business combination and were included as part of the consideration transferred for the business combination. The carrying value of the notes prior to the acquisition was $4.8 million due to losses attributable to the equity method investment being allocated to the notes receivable as a result of the equity method investment being reduced to zero during the year ended December 31, 2022. The Company recorded a gain on the notes receivable of $5.3 million within other income (expense), net in the consolidated statements of operations and comprehensive loss for the year ended December 31, 2022 for the excess of the $10.1 million outstanding principal and accrued interest over their carrying value of the notes.

 

The following table summarizes the preliminary fair value of assets acquired as of the acquisition date (in thousands):

Property, plant, and equipment

 

$

83,951

 

Intangible assets

 

 

11,500

 

Goodwill

 

 

11,172

 

Deferred tax liability

 

 

(2,679

)

Net assets acquired

 

$

103,944

 

 

The allocation of the purchase price, including the valuation of certain tangible and intangible assets acquired and the related tax effects and management’s validation of the historical cost basis of certain tangible assets provisionally valued using the cost method, is preliminary and subject to revision during the one-year measurement period from the date of acquisition if any new information is obtained about facts and circumstances that existed as of the acquisition date.

 

The fair value of Ginkgo’s equity interest in Joyn pre-dissolution was determined using a discounted cash flow method. The fair value of intangible assets, which consists of Joyn's developed technology, was determined using the relief from royalty method of the income approach. Significant assumptions used in the valuations included the estimated annual net cash flows (including projected future revenues and costs, terminal growth rates, royalty rates and obsolescence rates), and a discount rate that reflects the risks inherent in the future cash flows. Property, plant, and equipment consists of land, buildings, site improvements and personal property. The fair value of land was determined using the sales comparison approach and the fair value of the buildings, site improvements and personal property was determined using the cost and sales comparison approaches. Under the cost approach, the Company estimated the cost to acquire or construct comparable assets and made adjustments for physical deterioration. Intangible assets consist of Joyn's developed technology and have an estimated useful life of five years. Goodwill primarily reflects the value of future programs expected to arise after the acquisition and the assembled workforce. Goodwill is not expected to be deductible for tax purposes.

 

The Company incurred $3.0 million in costs associated with the winding up and dissolution of Joyn during the year ended December 31, 2022, which were recorded within operating expenses. Dissolution costs are shared equally between Ginkgo and Bayer. The joint venture is expected to be fully dissolved in early 2023. The Company incurred transaction and integration costs of $12.0 million related to the business combination, which were recorded in general and administrative expenses in the consolidated statements of operations and comprehensive loss. The transaction does not represent a material business combination and, therefore, pro forma financial information is not provided. Operating results of the acquired business have been included in the consolidated statements of operations and comprehensive loss since the date of acquisition and were not material to the Company’s results of operations for the year ended December 31, 2022.

 

Altar

On October 3, 2022, the Company acquired all of the outstanding shares of capital stock of Altar SAS (“Altar”), a French biotechnology company with a proprietary adaptive evolution platform. A fleet of Altar's automated adaptive laboratory evolution instruments will be integrated into Ginkgo's Foundry to serve customers across various industries. The total purchase consideration was $12.0 million and consisted of $2.8 million in cash, $1.4 million in restricted shares of Ginkgo Class A common stock subject to forfeiture if certain vesting conditions are not met, $5.6 million in unrestricted shares of Ginkgo Class A common stock, $1.6 million in contingent consideration and $0.6 million in assumed liabilities. The Company accounted for the transaction as a business combination under ASC 805. The net assets acquired primarily consisted of $8.4 million of intangible assets related to Altar's developed technology and $4.7 million of goodwill, which is not deductible for tax purposes. The business is reported as part of the Company’s Foundry reportable segment. The Company incurred $2.3 million in acquisition related costs which were recorded in general and administrative expenses. Pro forma information has not been presented because it is not material to the financial statements. Altar's results of operations have been included in the consolidated statements of operations and comprehensive loss since the date of acquisition and were not material to the Company’s results of operations for the year ended December 31, 2022.

FGen

On April 1, 2022, the Company acquired all of the outstanding equity interests of FGen AG (“FGen”), a company organized under the laws of Switzerland that specializes in strain development and optimization. FGen has developed an ultra-high-throughput screening platform built on nanoliter reactor technology which the Company believes will enhance its cell screening capabilities and potentially increase the likelihood of finding enzymes, pathways, and strains or cell lines that perform to diverse cell program specifications.

 

The Company accounted for the transaction as a business combination under ASC 805. Accordingly, the assets and liabilities acquired were recorded at their estimated fair value on the date of acquisition. FGen's results of operations have been included in the consolidated statements of operations and comprehensive loss since the date of acquisition and were not material to the Company’s results of operations for the year ended December 31, 2022. The FGen acquisition does not represent a material business combination and, therefore, pro forma financial information is not provided.

 

The consideration paid was comprised of common stock and contingent consideration as follows (in thousands):

Fair value of Class A common stock

 

$

17,015

 

Contingent consideration - restricted stock

 

 

3,842

 

Contingent consideration - milestones

 

 

8,464

 

Total FGen consideration

 

$

29,321

 

 

The Company issued 5,749,957 shares of its Class A common stock on the acquisition date comprised of 4,051,107 unrestricted shares valued at $17.0 million based on the closing market price of $4.20 and 1,698,850 restricted shares classified as contingent consideration and subject to vesting conditions. The contingent consideration in the form of restricted stock was valued at $3.8 million as of the acquisition date based on management’s estimate of the number of shares expected to vest and the closing market price of $4.20. The restricted shares were issued in three tranches with separate vesting conditions. Tranches 1 and 2 vest based on the price difference between the 15-day volume weighted average price (“VWAP”) of Ginkgo’s Class A common stock calculated on the date immediately prior to closing and the 15-day VWAP calculated on the date immediately prior to Ginkgo’s filing of the registration statement to register the unrestricted shares. The contingency was resolved on April 4, 2022 when the Company filed its Form S-1 registration statement and a total of 461,200 shares vested and 584,246 shares were forfeited related to tranches 1 and 2. The remaining 653,404 tranche 3 restricted shares will vest on the 24-month anniversary of the closing, provided, however, that the number of shares that vest will be reduced by any post-closing purchase price adjustments and indemnity claims. The estimated fair value of tranche 1 and 2 shares on the registration statement date was $1.9 million, which was reclassified from a liability into stockholders’ equity upon the determination of the number of shares that vested. The Company recognized a $0.8 million loss on the change in fair value of the contingent consideration related to tranche 1 and 2, which is included in general and administrative expenses in the consolidated statements of operations and comprehensive loss for the year ended December 31, 2022.

 

As part of the acquisition, the Company is required to make milestone payments up to a maximum of $25.0 million, with $20.0 million payable based on the successful integration and deployment of the FGen technology across the Company's programs over a 36-month period and $5.0 million payable to certain employees based on continuing service. The milestones are payable in cash or Class A common stock at the election of the Company. The $5.0 million payable to employees is accounted for separately from the business combination as post combination compensation expense to be recognized over the requisite service period. The fair value of the $20.0 million in contingent consideration on the acquisition date was determined using a scenario-based method. The significant assumptions used include the expected time of achievement and probability of success related to each milestone and a discount rate.

 

The Company allocated the purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition date. The fair value estimates for the purchase price allocation are considered preliminary and subject to adjustment during the measurement period, not to exceed one year after the date of acquisition. During the year ended December 31, 2022, the Company recorded certain measurement period adjustments related to tangible assets acquired and estimated tax liabilities, with a corresponding net decrease to goodwill.

 

The intangible assets acquired consist of FGen's developed technology which was measured at fair value using the multi-period excess earnings method under the income approach. Under this method, an intangible asset's fair value is equal to the present value of the incremental after-tax cash flows attributable only to the intangible asset after deducting charges representing the contribution of other assets to those cash flows. The significant assumptions used include the estimated annual net cash flows (including revenue growth rates, EBITDA and EBIT margins, applicable tax rate, and contributory asset charges), a discount rate, and the tax amortization benefit. Goodwill represents the amount by which the purchase price exceeds the estimated fair value of the net assets acquired and primarily reflects the value of future programs expected to arise after the acquisition.

 

The Company incurred $1.7 million of acquisition-related costs which were included in general and administrative expenses in the consolidated statements of operations and comprehensive loss.

 

The following table summarizes the preliminary fair value of assets acquired and liabilities assumed as of the acquisition date (in thousands):

 

 

 

Preliminary Allocation

 

 

Measurement Period Adjustment

 

 

Adjusted Allocation

 

Cash and cash equivalents

 

$

1,430

 

 

$

 

 

$

1,430

 

Accounts receivable

 

 

144

 

 

 

 

 

 

144

 

Other non-current assets

 

 

10

 

 

 

 

 

 

10

 

Property and equipment

 

 

146

 

 

 

(112

)

 

 

34

 

Intangible assets (1)

 

 

21,100

 

 

 

 

 

 

21,100

 

Goodwill (2)

 

 

11,001

 

 

 

(386

)

 

 

10,615

 

Accounts payable and accrued expenses

 

 

(29

)

 

 

 

 

 

(29

)

Deferred revenue

 

 

(104

)

 

 

 

 

 

(104

)

Deferred tax liability

 

 

(4,377

)

 

 

498

 

 

 

(3,879

)

Net assets acquired

 

$

29,321

 

 

$

 

 

$

29,321

 

(1) Estimated useful life of 15 years.

(2) Non-deductible for tax purposes.

Asset Acquisitions

On October 3, 2022, the Company completed the acquisition of all of the outstanding equity interests in Circularis Biotechnologies, Inc., (“Circularis”), a biotechnology company with a proprietary circular RNA and promoter screening platform. The aggregate purchase consideration was $18.6 million, of which $4.3 million was paid in cash, $10.2 million was paid in Ginkgo Class A common stock, $3.7 million represents contingent consideration and $0.4 million represents direct transaction costs. The Company accounted for the transaction as an asset acquisition as substantially all of the value received was concentrated in the acquired developed technology. The Company allocated the purchase consideration primarily to the developed technology intangible asset, which is being amortized over a useful life of five years. Additionally, the purchase agreement includes $2.5 million of employee retention payments, which will be recognized as compensation expense over the requisite service period.

On August 17, 2022, the Company acquired certain epidemiological data infrastructure assets from Baktus, Inc., a Delaware-based public benefit corporation. The Company accounted for the transaction as an asset acquisition as the value being acquired primarily relates to a single identifiable intangible asset. The total purchase consideration was $11.1 million and consisted of $2.0 million in cash, $8.4 million in Ginkgo Class A common stock and $0.7 million of direct transaction costs. Of the shares issued, 258,781 are restricted shares that will vest on the 18-month anniversary of the closing and will be reduced by any indemnity claims. The restricted shares are classified as contingent consideration liability in the consolidated balance sheet (see Note 4). Additionally, the purchase agreement includes $1.0 million of employee retention payments, which will be recognized as compensation expense over the requisite service period. As a result of the acquisition, the Company recognized $11.2 million in intangible assets consisting of developed technology, customer relationships and assembled workforce and $0.1 million in deferred revenue.

 

On June 1, 2022, the Company acquired substantially all of the assets of Bitome, Inc. (“Bitome”), a privately held company with an integrated metabolite monitoring platform that is expected to support accelerated product development timelines across Ginkgo's portfolio of cell programs. The Company accounted for the transaction as an asset acquisition as substantially all of the value received was concentrated in the intellectual property acquired. The consideration for the transaction was structured as (i) a repayment of Bitome’s outstanding convertible debt pursuant to the issuance of 388,649 shares of Class A common stock (valued at approximately $1.2 million as of the acquisition date), (ii) a repayment of a portion of Bitome’s outstanding convertible debt in cash in the amount of $0.1 million and (iii) assumption of certain of Bitome’s liabilities and wind-down expenses up to a maximum cap of $0.4 million. The total purchase consideration was expensed as in-process research and development expense in the consolidated statements of operations and comprehensive loss for the year ended December 31, 2022 as the technology requires continued development efforts and has no alternative future use.

Fiscal 2021 Acquisitions

SRNG Business Combination

On September 16, 2021 (the “Closing Date”), the Company and SRNG completed the merger transaction contemplated by the Merger Agreement (the “Closing"), with Old Ginkgo surviving the merger as a wholly owned subsidiary of SRNG.

Pursuant to the Merger Agreement, SRNG acquired all of the outstanding equity interests of Old Ginkgo for approximately $15.8 billion in aggregate consideration in the form of common stock of Ginkgo valued at $10 per share (the “Base Equity

Consideration”). The Base Equity Consideration was allocated among Old Ginkgo equity holders based on an exchange ratio of 49.080452 ("Exchange Ratio"). Accordingly, upon the closing of the SRNG Business Combination, all shares of Old Ginkgo Class A common stock and Old Ginkgo Class B common stock issued and outstanding immediately prior to the SRNG Business Combination converted into Ginkgo Class A common stock and Ginkgo Class B common stock, respectively, each with a par value of $0.0001 per share, based on the Exchange Ratio. All equity awards under Old Ginkgo's stock incentive plans were assumed by the Company and converted into comparable equity awards that are settled or exercisable for shares of the Company’s common stock. As a result, (i) each outstanding stock option to acquire Old Ginkgo common stock was converted into an option to purchase approximately 49.080452 shares of Ginkgo common stock, (ii) each outstanding share of restricted common stock was converted into approximately 49.080452 shares of restricted common stock of Ginkgo and (iii) each outstanding award of restricted stock units was assumed and converted into a restricted stock unit having the same terms and conditions as applied to the Old Ginkgo restricted stock unit so converted but relating to approximately 49.080452 shares of common stock of Ginkgo.

 

In addition to the Base Equity Consideration, the equity holders of Old Ginkgo received approximately 188.7 million shares of Ginkgo common stock (the “Earnout Consideration”), which are subject to forfeiture to the extent that the vesting conditions described below are not satisfied on or before the fifth anniversary of the Closing (the "Earnout Period"). If at any point during the trading hours of a trading day, for any 20 trading days within any period of 30 consecutive trading days during the Earnout Period, the trading price per share of the Company's Class A common stock is greater than or equal to:

$12.50, then 25% of the Earnout Consideration will immediately vest;
$15.00, then an additional 25% of the Earnout Consideration will immediately vest;
$17.50, then an additional 25% of the Earnout Consideration will immediately vest; and
$20.00, then the remaining 25% of the Earnout Consideration will immediately vest.

 

The Company evaluated the earnout shares and concluded that they qualify for the scope exception from derivative accounting in ASC 815-10-15-74 and meet the criteria for equity classification under ASC 815-40. The Company determined that the earnout shares underlying rollover equity awards (i.e., restricted stock awards, restricted stock units and options) granted under the Company's stock incentive plans (together the "Rollover Equity Awards") that are unvested as of the Closing Date are within the scope of ASC 718 (see Note 13). The remaining earnout shares issued to holders of Old Ginkgo common stock and those earnout shares underlying vested Rollover Equity Awards were initially measured at fair value at Closing and recorded within additional paid-in-capital ("APIC") and had no net impact on APIC. Since those earnout shares are equity-classified, there is no remeasurement unless reclassification is required. Upon meeting an earnout target, the earnout shares delivered to the equity holders are recorded in equity as shares outstanding with the appropriate allocation to par value of common stock and APIC. The first earnout target of $12.50 was met on November 15, 2021 and, as a result, approximately 38.8 million earnout shares became vested and outstanding.

 

In connection with the entry into the Merger Agreement, Eagle Equity Partners III, LLC, a Delaware limited liability company (the “Sponsor”), forfeited 11,534,052 of its shares of Ginkgo Class A common stock and an additional 16,737,183 of its shares of Ginkgo Class A common stock (the "Sponsor Earnout Shares") became subject to vesting and forfeiture conditions identical to those applicable to the Earnout Consideration issued to Old Ginkgo equity holders. Similar to the Earnout Consideration, the Sponsor Earnout Shares were accounted for as equity classified instruments and were included as merger consideration and recorded in additional paid-in capital. The Sponsor Earnout Shares are considered legally issued and outstanding shares of common stock subject to restrictions on transfer and do not participate in the earnings or losses of the Company prior to vesting.

 

The SRNG Business Combination is accounted for as a reverse recapitalization, in accordance with GAAP. Under this method of accounting, SRNG was treated as the “acquired” company for financial reporting purposes. Accordingly, the SRNG Business Combination was treated as the equivalent of Old Ginkgo issuing stock for the net assets of SRNG, accompanied by a recapitalization. The net assets of SRNG are stated at historical cost, with no goodwill or other intangible assets recorded.

 

PIPE Investment

 

On May 11, 2021, concurrently with the execution of the Merger Agreement, SRNG entered into subscription agreements with certain accredited investors (the “PIPE Investors”). In connection with the consummation of the SRNG Business Combination on September 16, 2021, the PIPE Investors collectively consummated investments for 76,000,000 shares of the

Company's Class A common stock at a price of $10.00 per share (the "PIPE Shares") for an aggregate amount of $760.0 million (the “PIPE Investment”).

 

Summary of Net Proceeds

 

The following table summarizes the elements of the net proceeds from the SRNG Business Combination (in thousands):

 

Cash - SRNG Trust and cash (net of redemptions)

 

$

857,747

 

Cash - PIPE Investment

 

 

760,000

 

Less: Payment of underwriter fees and other offering costs

 

 

(108,118

)

Net proceeds from the SRNG Business Combination

 

$

1,509,629

 

 

Summary of Shares Issued

 

The following table summarizes the number of shares of common stock outstanding immediately following the consummation of the SRNG Business Combination:

 

SRNG shares outstanding prior to the SRNG Business Combination

 

 

215,625,000

 

Less: redemption of SRNG shares prior to the SRNG Business Combination

 

 

(86,725,312

)

Less: SRNG shares forfeited

 

 

(11,534,052

)

Common stock of SRNG (1)

 

 

117,365,636

 

Shares issued pursuant to the PIPE Investment

 

 

76,000,000

 

SRNG Business Combination and PIPE Investment shares

 

 

193,365,636

 

Conversion of Old Ginkgo Series B preferred stock to common stock

 

 

203,346,152

 

Conversion of Old Ginkgo Series C preferred stock to common stock

 

 

228,641,430

 

Conversion of Old Ginkgo Series D preferred stock to common stock

 

 

302,464,716

 

Conversion of Old Ginkgo Series E preferred stock to common stock

 

 

170,227,108

 

Conversion of Old Ginkgo common stock (2)

 

 

387,016,194

 

Total shares of Ginkgo common stock outstanding immediately following the SRNG Business Combination

 

 

1,485,061,236

 

 

(1) Includes 16,737,183 shares of Class A common stock, the Sponsor Earnout Shares, that are subject to forfeiture if certain earnout conditions are not met, as the shares are legally outstanding as of the Closing of the SRNG Business Combination.

(2) Excludes 283,396,094 shares of Class A and Class B common stock underlying rollover equity instruments (i.e., restricted stock units and stock options) and 259,440 shares of Class A and Class B common stock underlying unvested restricted stock awards.

Dutch DNA

On July 1, 2021, the Company acquired 100% of the outstanding capital stock of Dutch DNA Biotech B.V. (“Dutch DNA”), a company based in the Netherlands with a proprietary platform technology focused on the development of fungal strains and fermentation processes for the production of proteins and organic acids. Dutch DNA's significant expertise and fungal strain assets for the large-scale production of proteins is expected to add a valuable set of tools to the Company's Codebase and broader platform for cell programming.

 

The following table summarizes the preliminary acquisition date fair value of the consideration transferred for Dutch DNA (in thousands):

 

Cash

 

$

11,451

 

Fair value of Class A common stock

 

 

15,087

 

Contingent consideration

 

 

8,760

 

Total Dutch DNA consideration

 

$

35,298

 

 

 

The fair value of the Class A common stock issued as part of the consideration paid for Dutch DNA was determined using the then-most recently available third-party valuation of the Company's common stock. The contingent consideration arrangement requires the Company to pay up to a maximum of $20.0 million to the seller upon the achievement of certain technical and commercial milestones by Dutch DNA pursuant to a Technical Development Agreement executed between the

Company and Dutch DNA prior to the close of the acquisition. Refer to Note 4 for a discussion of the fair value of the contingent consideration liability.

 

The acquisition was accounted for in accordance with ASC 805. Dutch DNA's results of operations have been included in the Consolidated Statements of Operations and Comprehensive Loss since the date of acquisition, which were not material. The Dutch DNA acquisition does not represent a material business combination, and therefore pro forma financial information is not provided. The Company allocated the purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition date. The fair value of the intangible assets was determined using the replacement cost method which estimates the cost the Company would incur in rebuilding the technology. The excess purchase price consideration was recorded as goodwill and is made up of the future potential value of the acquired intellectual property and the assembled workforce. The Company incurred $0.6 million of acquisition-related costs which were included in general and administrative expenses in the consolidated statements of operations and comprehensive loss.

The following table presents the final allocation of the purchase price to the assets acquired and liabilities assumed as of the acquisition date (in thousands):

 

 

Preliminary Allocation

 

 

Measurement Period Adjustments (3)

 

 

Final Allocation

 

Cash

 

$

387

 

 

$

 

 

$

387

 

Accounts receivable

 

 

149

 

 

 

 

 

 

149

 

Prepaid expenses and other current assets

 

 

170

 

 

 

 

 

 

170

 

Property and equipment

 

 

234

 

 

 

 

 

 

234

 

Intangibles (1)

 

 

20,500

 

 

 

 

 

 

20,500

 

Goodwill (2)

 

 

15,177

 

 

 

4,839

 

 

 

20,016

 

Accounts payable

 

 

(194

)

 

 

 

 

 

(194

)

Accrued expenses and other current liabilities

 

 

(137

)

 

 

(49

)

 

 

(186

)

Deferred tax liability

 

 

 

 

 

(4,790

)

 

 

(4,790

)

Other non-current liabilities

 

 

(988

)

 

 

 

 

 

(988

)

Net assets acquired

 

$

35,298

 

 

$

 

 

$

35,298

 

(1) Estimated useful life of 15 years.

(2) Non-deductible for tax purposes.

(3) Represents adjustment related to deferred income taxes and the final determination of net-working capital as of the acquisition date.

v3.22.4
Fair Value Measurements
12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements

4. Fair Value Measurements

The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis (in thousands):

 

 

 

As of December 31, 2022

 

 

 

 

Total

 

 

 

Level 1

 

 

 

Level 2

 

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

Cash and cash equivalents

 

$

1,089,026

 

 

 

 

$

1,089,026

 

 

 

 

$

 

 

 

 

$

 

Synlogic, Inc. warrants (1)

Investments

 

 

1,937

 

 

 

 

 

 

 

 

 

 

1,937

 

 

 

 

 

 

Marketable equity securities (2)

Investments

 

 

25,714

 

 

 

 

 

21,312

 

 

 

 

 

4,402

 

 

 

 

 

 

Notes receivable

Other non-current assets

 

 

37,660

 

 

 

 

 

 

 

 

30,000

 

 

 

 

7,660

 

Total assets

 

 

$

1,154,337

 

 

 

 

$

1,110,338

 

 

 

 

$

36,339

 

 

 

 

$

7,660

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Public Warrants

Warrant liabilities

 

$

6,900

 

 

 

 

$

6,900

 

 

 

 

$

 

 

 

 

$

 

Private Placement Warrants

Warrant liabilities

 

 

3,968

 

 

 

 

 

 

 

 

 

 

108

 

 

 

 

 

3,860

 

Contingent consideration

Accrued expenses and other current liabilities

 

 

6,378

 

 

 

 

 

 

 

 

 

 

 

 

6,378

 

Contingent consideration

Other non-current liabilities

 

 

18,095

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18,095

 

Total liabilities

 

 

$

35,341

 

 

 

 

$

6,900

 

 

 

 

$

108

 

 

 

 

$

28,333

 

 

 

 

 

As of December 31, 2021

 

 

Classification

 

Total

 

 

 

Level 1

 

 

 

Level 2

 

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

Cash and cash equivalents

 

$

1,482,063

 

 

 

 

$

1,482,063

 

 

 

 

$

 

 

 

 

$

 

Synlogic, Inc. warrants (1)

Investments

 

 

6,166

 

 

 

 

 

 

 

 

 

 

6,166

 

 

 

 

 

 

Marketable equity securities (2)

Investments

 

 

25,676

 

 

 

 

 

15,345

 

 

 

 

 

10,331

 

 

 

 

 

 

Notes receivable

Prepaid expenses and other current assets

 

 

11,559

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,559

 

Total assets

 

 

$

1,525,464

 

 

 

 

$

1,497,408

 

 

 

 

$

16,497

 

 

 

 

$

11,559

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Public Warrants

Warrant liabilities

 

$

77,280

 

 

 

 

$

77,280

 

 

 

 

$

 

 

 

 

$

 

Private Placement Warrants

Warrant liabilities

 

 

58,558

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

58,558

 

Contingent consideration

Other non-current liabilities

 

 

8,467

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,467

 

Total liabilities

 

 

$

144,305

 

 

 

 

$

77,280

 

 

 

 

$

 

 

 

 

$

67,025

 

(1) The fair value of Synlogic, Inc. warrants is calculated as the quoted price of the underlying common stock, less the unpaid exercise price of the warrants.

(2) Marketable equity securities classified as Level 2 reflect a discount for lack of marketability due to regulatory sales restrictions, which lapsed on a portion of the shares held during the year ended December 31, 2022 and were reclassified as Level 1.

 

Transfers to/from Levels 1, 2 and 3 are recognized at the end of the reporting period in which a change in valuation technique or methodology occurs. The estimated fair value of a portion of the Private Placement Warrants was transferred from Level 3 to Level 2 fair value measurement as of December 31, 2022, as the transfer of Private Placement Warrants to anyone other than the initial purchasers or any of their permitted transferees results in the Private Placement Warrants having substantially the same terms as the Public Warrants. The Company determined that the fair value of the transferred Private Placement Warrants is equivalent to that of Public Warrants. There were no other transfers to/from Level 3 during any of the periods presented.
 

Notes Receivable

 

Notes receivable measured at fair value on a recurring basis primarily consist of a $30.0 million senior secured note (“Senior Secured Note”) purchased from Bolt Threads, Inc., a series of convertible promissory notes issued by a customer as payment for Foundry R&D services, a revolving promissory note with Glycosyn, LLC (“Glycosyn” and “Glycosyn Promissory Note”)

and a series of convertible notes with Access Bio, Inc. (“Access Bio Convertible Notes”). The fair value of notes receivable, other than the Senior Secured Note, is based on significant inputs not observable in the market, which represent a Level 3 measurement within the fair value hierarchy. Significant changes in these unobservable inputs in isolation could have resulted in a significantly lower or higher fair value measurement.

 

The Company used the yield method to value the Senior Secured Note. Under this method, the estimated future cash flows, consisting of principal and interest payments, are discounted to present value using an applicable market yield or discount rate. Increases or decreases in the market yield or discount rate would result in a decrease or increase, respectively, in the fair value measurement. The market yield is determined using a corporate bond yield curve corresponding to the credit rating category of the issuer. The fair value of the Senior Secured Note is based on observable market inputs, which represents a Level 2 measurement within the fair value hierarchy.

 

The Company used a scenario-based method to value the series of convertible promissory notes from a customer. Under the scenario-based method, future cash flows are evaluated under a qualified financing, maturity and dissolution scenarios, probability-weighted and discounted to present value. The significant unobservable inputs used in the fair value measurement were scenario probabilities of 15% and 55%, a discount rate of 12.5% and estimated time to event date of one to three years.

As of December 31, 2021, the Company estimated the fair value of the Glycosyn Promissory Note using a probability-weighted discounted cash flow model under a dissolution scenario with partial recovery and no recovery as Glycosyn was in default on that date. The significant assumptions used in valuing the Glycosyn Promissory Note were scenario probabilities of 50%, a recovery rate on first lien debt of 63% and a discount rate of 15%. The Glycosyn Promissory Note had an amended maturity date of December 31, 2022 and was in default on that date. The Company wrote off the Glycosyn Promissory Note on December 31, 2022 as it was deemed uncollectible and recorded a loss on notes receivable of $1.9 million in other income (expense), net on the consolidated statements of operations and comprehensive loss.

As of December 31, 2021, the Company estimated the fair value of the Access Bio Convertible Notes using a binomial lattice model with the following key assumptions: 85.5% equity volatility, 0.88 years to maturity, 0.3% risk-free rate, 30.9% risk-adjusted rate and 0% dividend yield. Upon maturity in November 2022, the Company collected in cash the $10.4 million outstanding principal and accrued interest balance of the Access Bio Convertible Notes.

The following table provides a reconciliation of notes receivable measured at fair value using Level 3 significant unobservable inputs (in thousands):

 

 

2022

 

 

2021

 

Balance at January 1

 

$

11,559

 

 

$

15,566

 

Additions

 

 

7,660

 

 

 

 

Proceeds from notes receivable

 

 

(10,404

)

 

 

(304

)

Conversion of notes to preferred stock

 

 

 

 

 

(195

)

Change in fair value

 

 

705

 

 

 

(3,508

)

Write-off

 

 

(1,860

)

 

 

 

Balance at December 31

 

$

7,660

 

 

$

11,559

 

 

Refer to Note 21 for further discussion regarding the potential impacts of the closure of Silicon Valley Bank to the Company’s notes receivable.

 

Warrant Liabilities

The fair value of the Public Warrants is based on the observable quoted price of such warrants on the New York Stock Exchange. The fair value of the Private Placement Warrants is estimated using the Black-Scholes option pricing model, which is considered to be a Level 3 fair value measurement. The primary unobservable input used in the valuation of the Private Placement Warrants is expected stock-price volatility. As of December 31, 2022, the Company estimated the volatility of its Private Placement Warrants using a Monte-Carlo simulation of the redeemable Public Warrants that assumes optimal exercise of the Company's redemption option at the earliest possible date. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve for a maturity similar to the expected remaining life of the warrants. The expected life of the warrants is assumed to be equivalent to their remaining contractual term. The dividend yield is based on the historical rate, which the Company anticipates remaining at zero. Refer to Note 9 for additional details on the Company’s warrant liabilities.

The following table provides quantitative information regarding Level 3 inputs used in the recurring valuation of the Private Placement Warrants as of their measurement dates:

 

 

December 31, 2022

 

 

December 31, 2021

 

Exercise price

 

$

11.50

 

 

$

11.50

 

Stock price

 

$

1.69

 

 

$

8.31

 

Volatility

 

 

71.5

%

 

 

58.7

%

Term (in years)

 

 

3.71

 

 

4.71

 

Risk-free interest rate

 

 

4.11

%

 

 

1.25

%

 

The following table provides a reconciliation of the Private Placement Warrants measured at fair value using Level 3 inputs (in thousands):

 

 

2022

 

 

2021

 

Balance at January 1

 

$

58,558

 

 

$

 

Additions pursuant to the SRNG Business Combination

 

 

 

 

 

90,263

 

Transfer to Level 2

 

 

(125

)

 

 

 

Change in fair value

 

 

(54,573

)

 

 

(31,705

)

Balance at December 31

 

$

3,860

 

 

$

58,558

 

Contingent Consideration

 

In connection with the acquisition of FGen, the Company may be required to make contingent earnout payments up to $20.0 million primarily related to the successful integration and deployment of the FGen technology across the Company's programs. The Company also issued restricted stock that is subject to vesting conditions and is classified as contingent consideration liability. A portion of the restricted shares vested during the year ended December 31, 2022 and $1.9 million of the liability was settled as discussed in Note 3.

 

In connection with the acquisition of Dutch DNA, the Company may be required to make contingent earnout payments up to a maximum of $20.0 million payable upon the achievement of certain technical and commercial milestones by Dutch DNA pursuant to a Technical Development Agreement executed between the Company and Dutch DNA prior to the close of the acquisition. In 2022, the Company made a payment of $0.7 million upon the achievement of a technical development milestone and recorded a corresponding $0.7 million decrease in the fair value of the contingent consideration liability.

 

In connection with the acquisition of Circularis, the Company may be required to make contingent earnout payments up to a maximum of $40.0 million payable primarily upon the achievement of certain clinical trial milestones over a five-year period.

 

In connection with the acquisition of Altar, the Company may be required to make contingent earnout payments up to $2.5 million upon the successful transfer of the Altar technology to Ginkgo's sites in the U.S.

 

The fair value of contingent consideration related to restricted stock issued for acquisitions was estimated using the quoted price of Ginkgo's Class A common stock, an estimate of the number of shares expected to vest, probability of vesting, and a discount rate. The fair value of contingent consideration related to earnout payments from acquisitions was estimated using unobservable (Level 3) inputs as illustrated in the table below. Material increases or decreases in these inputs could result in a higher or lower fair value measurement. Changes in the fair value of contingent consideration are recorded in general and administrative expense in the consolidated statements of operations and comprehensive loss.

 

The following table provides quantitative information regarding Level 3 inputs used in the fair value measurements of contingent consideration liabilities as of the periods presented:

 

 

 

 

 

 

December 31, 2022

 

 

December 31, 2021

 

Contingent Consideration Liability

 

Valuation Technique

 

Unobservable Input

 

Range

 

 

Range

 

Earnout payments (FGen, Dutch DNA, Circularis and Altar acquisitions)

 

Probability-weighted present value

 

Probability of payment

 

2%-100%

 

 

10% - 80%

 

 

 

 

 

Discount rate

 

12.20%-13.11%

 

 

10.7% - 11.3%

 

Earnout payments (Dutch DNA acquisition)

 

Discounted cash flow

 

Projected years of payments

 

2025-2028

 

 

2022 - 2037

 

 

 

 

 

Discount rate

 

 

12.0

%

 

 

9

%

 

The following table provides a reconciliation of the contingent consideration liability measured at fair value using Level 3 inputs (in thousands):

 

 

2022

 

 

2021

 

Balance at January 1

 

$

8,467

 

 

$

 

Additions

 

 

19,912

 

 

 

8,760

 

Change in fair value

 

 

(1,262

)

 

 

(293

)

Settlements and payments

 

 

(2,644

)

 

 

 

Balance at December 31

 

$

24,473

 

 

$

8,467

 

Nonrecurring Fair Value Measurements

 

The Company measures the fair value of certain assets, including investments in privately held companies without readily determinable fair values, on a nonrecurring basis when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

 

In the second quarter of 2022, the Company recorded a $10.1 million impairment charge, included as a component of loss on investments in the consolidated statements of operations and comprehensive loss, due to the decline in the fair value of the Company's investment in Genomatica preferred stock. The fair value estimates used to determine the impairment charge were determined using enterprise value analyses which include an equal weighing between discounted cash flow analyses and guideline public company and involve significant unobservable (Level 3) inputs. The significant unobservable inputs include the estimated annual net cash flows (including revenue and expense growth rates and capitalization rates), the weighted-average cost of capital used to discount the future cash flows, and the selection of guideline public company multiples for revenue and EBITDA. Material increases or decreases in these inputs could result in a higher or lower fair value measurement.

 

The Company used a scenario-based method to value SAFEs received from customers in 2022. Under the scenario-based method, future cash flows were evaluated under qualified financing and dissolution scenarios with partial recovery and no recovery in dissolution. The cash flows under each scenario was probability-weighted and discounted to present value. The significant unobservable (Level 3) inputs used in the fair value measurement were scenario probabilities of 18% to 65%, discount rate of 13% and estimated time to event date of one to two years.

v3.22.4
Investments and Equity Method Investments
12 Months Ended
Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]  
Investments and Equity Method Investments

5. Investments and Equity Method Investments

The Company partners with other investors to form business ventures, including Motif FoodWorks, Inc. (“Motif”), Allonnia, LLC (“Allonnia”), Arcaea, LLC (“Arcaea”), Verb Biotics, LLC (“Verb”), BiomEdit, LLC (“BiomEdit”) and Ayana Bio, LLC (“Ayana”) (collectively “Platform Ventures”). The Company also partners with existing entities, including Genomatica, Inc. (“Genomatica”) and Synlogic, Inc. (“Synlogic”) (collectively, “Structured Partnerships”) with complementary assets for high potential synthetic biology applications. The Company holds equity interests in these Platform Ventures and Structured Partnerships. The Company also holds equity interests in other public and private companies as a result of entering into collaboration and license revenue arrangements with these entities.

 

The Company accounts for its investments in Platform Ventures under the equity method. The Company's marketable equity securities consist of Synlogic common stock, Synlogic warrants and the shares of common stock of other publicly traded

companies. Marketable equity securities are measured at fair value with changes in fair value recorded in other (expense) income in the consolidated statements of operations and comprehensive loss. The Company’s non-marketable equity securities consist of preferred stock of Genomatica and other privately held companies without readily determinable fair values. Non-marketable equity securities are initially recorded using the measurement alternative at cost and subsequently adjusted for any impairment and observable price changes in orderly transactions for the identical or a similar security of the same issuer. During the year ended December 31, 2022, the Company recorded a $10.1 million impairment charge, included as a component of loss on investments in the consolidated statements of operations and comprehensive loss, due to the decline in the fair value of the Company's investment in Genomatica preferred stock. There were no impairments recorded during the years ended December 31, 2021 and 2020 and no adjustment from observable price changes has been recognized during any of the periods presented.

 

Beginning in 2022, the Company also holds investments in early-stage synthetic biology product companies via SAFEs. The Company enters into SAFE agreements in conjunction with a revenue contract with a customer under which the Company grants the customer a prepaid Foundry services credit equal to the principal amount of the SAFE (the “Purchase Amount”), which may be used and drawn down as payment for the Company’s research and development activities. The SAFEs will automatically convert into shares of preferred stock equal to the Purchase Amount divided by the discount price, which is calculated as the price per share sold in the equity financing multiplied by a discount rate. The SAFEs also provide the Company with the right to future equity of the entity in a liquidation scenario or the cash-out amount in liquidation and dissolution scenarios or at the election of the SAFE issuer prior to an agreed outside date. The Company initially records SAFEs at fair value (see Note 4) and adjusts the carrying value of the instrument at each reporting period for any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar instrument of the same issuer. There were no impairment charges or observable price changes related to SAFEs during any of the periods presented.

 

Refer to Note 21 for further discussion regarding the potential impacts of the closure of Silicon Valley Bank to the Company’s investments.

Investments and equity method investments consisted of the following (in thousands):

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

Investments:

 

 

 

 

 

 

Genomatica, Inc. preferred stock

 

$

44,885

 

 

$

55,000

 

Synlogic, Inc. common stock

 

 

4,819

 

 

 

15,345

 

Synlogic, Inc. warrants

 

 

1,937

 

 

 

6,166

 

Marketable equity securities

 

 

20,895

 

 

 

10,331

 

Non-marketable equity securities

 

 

17,544

 

 

 

15,195

 

SAFEs

 

 

22,108

 

 

 

 

Total

 

$

112,188

 

 

$

102,037

 

Equity method investments (1):

 

 

 

 

 

 

Joyn Bio, LLC

 

$

 

 

$

11,694

 

BiomEdit, LLC

 

 

369

 

 

 

 

Other

 

 

1,174

 

 

 

1,500

 

Total

 

$

1,543

 

 

$

13,194

 

 

 

(1) Equity method investments in Platform Ventures with a carrying value of zero as of December 31, 2022 and 2021 were excluded from the table above.

(Loss) gain on investments and equity method investments consisted of the following (in thousands):

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

(Loss) gain on investments:

 

 

 

 

 

 

 

 

 

Synlogic, Inc. common stock

 

$

(10,526

)

 

$

1,649

 

 

$

(2,663

)

Synlogic, Inc. warrants

 

 

(4,230

)

 

 

662

 

 

 

(1,070

)

Genomatica, Inc.

 

 

(10,115

)

 

 

 

 

 

 

Marketable equity securities

 

 

(28,269

)

 

 

(13,854

)

 

 

 

Non-marketable equity securities

 

 

(195

)

 

 

 

 

 

 

Total

 

$

(53,335

)

 

$

(11,543

)

 

$

(3,733

)

Loss on equity method investments:

 

 

 

 

 

 

 

 

 

Joyn Bio, LLC (1)

 

$

(3,043

)

 

$

(17,230

)

 

$

(396

)

Allonnia, LLC

 

 

 

 

 

(12,698

)

 

 

 

Arcaea, LLC

 

 

 

 

 

(47,356

)

 

 

 

Verb Biotics, LLC

 

 

(15,900

)

 

 

 

 

 

 

BiomEdit, LLC

 

 

(8,503

)

 

 

 

 

 

 

Ayana, LLC

 

 

(15,989

)

 

 

 

 

 

 

Other

 

 

(326

)

 

 

 

 

 

 

Total

 

$

(43,761

)

 

$

(77,284

)

 

$

(396

)

 

(1) Comprised of $14.0 million gain on the remeasurement of the Company's equity interest in Joyn at fair value as of the acquisition date offset by a $17.0 million loss on the equity method investment. The loss on equity method investment in Joyn in excess over the carrying value of zero of the equity method investment in Joyn during the year ended December 31, 2022 was recorded as a reduction in the convertible promissory notes receivable from Joyn (see Note 20).

v3.22.4
Variable Interest Entities
12 Months Ended
Dec. 31, 2022
Variable Interest Entity, Measure of Activity [Abstract]  
Variable Interest Entities

6. Variable Interest Entities

Consolidated Variable Interest Entities

As of December 31, 2021, the Company had consolidated three variable interest entities (“VIEs”): Cooksonia, LLC (“Cooksonia”), Verb and Ayana, as the Company held variable interests in and was deemed to be the primary beneficiary of the VIEs. The other investors’ equity interests in the consolidated VIEs are presented as non-controlling interests in the accompanying consolidated financial statements.

The Company initially held a 70% equity interest in Cooksonia, which was formed by the Company and certain other investors for the purposes of holding the Company’s investment in Joyn. The Company concluded that it held a variable interest in and was the primary beneficiary of Cooksonia as it controlled the most significant activities of Cooksonia by controlling 100% of the board of directors of Cooksonia and held a controlling financial interest in Cooksonia. During the fourth quarter of 2022, in conjunction with the termination of the Joyn joint venture (Note 3), the Company acquired the remaining 30% non-controlling interest in Cooksonia. The acquisition of the non-controlling interest did not result in a change of control, accordingly, the Company accounted for the acquisition as an equity transaction with no gain or loss recognized in the consolidated statements of operations and comprehensive loss. The carrying amount of the non-controlling interest in Cooksonia was adjusted to zero and Cooksonia became a wholly owned subsidiary of the Company as of December 31, 2022.

 

As of December 31, 2021, the Company held an interest in 9,000,000 common units (representing 100% of common units at inception) in each of Ayana and Verb, two Platform Ventures formed in September 2021 by the Company and certain of its investors. The Company has agreed to provide Ayana and Verb with certain licenses to intellectual property for use in the development or production of products that the parties agree to research and develop under technical development plans (“TDPs”). Additionally, in September 2021, Ayana and Verb entered into a Series A Preferred Unit Purchase Agreement under which each entity sold 9,000,000 Series A preferred units to certain of the Company’s investors for aggregate proceeds of approximately $30.0 million each. During 2021, the Company concluded that it held a variable interest in and was the primary beneficiary of Ayana and Verb as it controlled the most significant activities of these entities. These conclusions were reached because, as of the primary beneficiary assessment dates in 2021, for both Verb and Ayana: (i) the Company had substantive control of the board of directors; (ii) all capital contributions were made by related parties of Ginkgo; and (iii)

Ginkgo or its related parties comprised the entirety of the joint steering committee (“JSC”), the governing body which holds significant oversight with respect to the entities' research and development programs.

 

2022 Deconsolidation

 

During 2022, Verb and Ayana each hired a new chief executive officer who was not an affiliate, related party or agent of Ginkgo. The chief executive officer was also appointed to each entity's JSC and board of directors. As a result, the Company concluded it no longer had substantive control of each entity's JSC and board of directors. Accordingly, the Company concluded that it was no longer the primary beneficiary of Verb and Ayana as it no longer controlled the most significant activities of the entities. As a result of this change in the primary beneficiary determination, the Company deconsolidated Verb in the first quarter of 2022 and Ayana in the third quarter of 2022 and recorded a gain on deconsolidation of $31.9 million for the year ended December 31, 2022, in the consolidated statements of operations and comprehensive loss. The gain on deconsolidation was equal to the fair value of the retained interest in each entity as of the deconsolidation date and was calculated using the option pricing method. The option pricing method used a back-solve methodology to infer the total equity value based on the pricing of the Series A preferred unit financing, which is the most recent financing transaction to the deconsolidation event.

 

The JSC, with equal representation from each of Verb or Ayana and Ginkgo, governs the TDPs under which the Company will perform agreed-upon research and development services in return for consideration on a cost-plus basis for all services provided. Ginkgo has agreed to provide Verb and Ayana with licenses to certain of its intellectual property for use in the development, production and commercialization of each entity's products under the TDPs. The Company's common unit investment in Verb and Ayana is accounted for as an equity method investment, and accordingly, Verb and Ayana are related parties of Ginkgo. The initial carrying value of the equity method investment was equal to the fair value of the retained interest of $15.9 million for Verb and $16.0 million for Ayana as of the applicable deconsolidation date. The Series A preferred units issued by Verb and Ayana receive a liquidation preference prior to common units. As such, the Company concluded that this represents a substantive profit-sharing arrangement and the Company is recognizing earnings and losses on the equity method investment using the HLBV method. The Company recorded a loss on its equity method investment in Verb and Ayana of $31.9 million in the year ended December 31, 2022, due to a basis difference associated with in-process research and development identified as part of the initial accounting for the equity method investment. This loss reduced the carrying value of the equity method investment in each of Verb and Ayana to zero. There is no commitment for the Company to provide further financial support to Verb and Ayana, and therefore the carrying value of the equity method investment will not be reduced below zero.

 

The aggregate carrying value of total assets and liabilities included on the consolidated balance sheet for consolidated VIEs as of December 31, 2021 was $58.0 million in cash and cash equivalents, $0.7 million in prepaid expense and other current assets, $11.7 million in equity method investments and $0.6 million in current liabilities.

Unconsolidated Variable Interest Entities

With respect to the Company’s investments in Motif, Allonnia, Genomatica, Arcaea, BiomEdit, Verb and Ayana (subsequent to the deconsolidation of Verb and Ayana) (collectively, the "Unconsolidated VIEs"), the Company has concluded these entities represent VIEs. However, although the Company may have board representation and is involved in the ongoing development activities of the entities via its participation on the JSC, the Company has concluded that it is not the primary beneficiary of these entities. This conclusion is supported by the fact that: (i) the Company does not control the board of directors of any of the Unconsolidated VIEs, and no voting or consent agreements exist between the Company and other members of each respective board of directors or other investors, (ii) the holders of preferred security interests in the Unconsolidated VIEs hold certain rights that require their consent prior to taking certain actions, which include certain significant operating and financing decisions, and (iii) the Company’s representation on the JSC of each respective entity does not give it control over the development activities of any of the Unconsolidated VIEs, as all JSC decisions are made by consensus and there are no agreements in place that would require any of the entities to vote in alignment with the Company. As the Company’s involvement in the Unconsolidated VIEs does not give it the power to control the decisions with respect to their development or other activities, which are their most significant activities, the Company has concluded that it is not the primary beneficiary of the Unconsolidated VIEs.

 

With respect to Cooksonia’s investment in Joyn prior to the joint venture’s termination on October 17, 2022 (see Note 3), as Cooksonia did not control Joyn’s board of directors, it did not have the power to control the decisions related to the development activities of Joyn, which were its most significant activities. Accordingly, the Company has concluded that

Cooksonia was not the primary beneficiary of Joyn. The Company has provided $10.0 million in financial support to Joyn during the year ended December 31, 2022 in the form of convertible promissory notes (see Note 20), which were deemed necessary to fund Joyn’s operations pre-dissolution. The Company expects to incur general and administrative expenses associated with the winding up and dissolution of Joyn.

 

Additionally, the Company holds equity interests in certain privately-held companies that are not consolidated as the Company is not the primary beneficiary. As of December 31, 2022 and 2021, the maximum risk of loss related to the Company’s unconsolidated VIEs was limited to the carrying value of its investments in such entities.

Refer to Notes 5 and 16 for additional details on the Company’s investments and equity method investments.

v3.22.4
Goodwill and Intangible Assets, net
12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, net

7. Goodwill and Intangible Assets, net

All goodwill is allocated to the Foundry reporting unit and segment identified in Note 15. Changes in the carrying amount of goodwill consisted of the following (in thousands):

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

Beginning balance

 

$

21,312

 

 

$

1,857

 

Goodwill acquired in acquisitions

 

 

39,712

 

 

 

15,177

 

Impact of foreign currency translation

 

 

(266

)

 

 

(722

)

Measurement period adjustments

 

 

(548

)

 

 

5,000

 

Ending balance

 

$

60,210

 

 

$

21,312

 

Intangible assets, net consisted of the following (in thousands):

 

 

Gross
Carrying
Value
(1)

 

 

Accumulated
Amortization
(1)

 

 

Net
Carrying
Value

 

 

Weighted Average
Amortization Period

 

December 31, 2022:

 

 

 

 

 

 

 

 

 

 

 

 

Developed technology

 

$

115,824

 

 

$

(8,825

)

 

$

106,999

 

 

 

9.4

 

Database

 

 

3,700

 

 

 

(107

)

 

 

3,593

 

 

 

6.8

 

Customer relationships

 

 

380

 

 

 

(71

)

 

 

309

 

 

 

1.6

 

Assembled workforce

 

 

190

 

 

 

(50

)

 

 

140

 

 

 

1.0

 

Total intangible assets

 

$

120,094

 

 

$

(9,053

)

 

$

111,041

 

 

 

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Developed technology

 

$

25,038

 

 

$

(3,396

)

 

$

21,642

 

 

 

13.3

 

(1) Gross carrying value and accumulated amortization include the impact of cumulative foreign currency translation adjustments.

Amortization expense was $5.6 million, $1.2 million and $0.5 million for the years ended December 31, 2022, 2021 and 2020, respectively. The estimated future amortization expense for intangible assets remaining as of December 31, 2022 is as follows (in thousands):

2023

 

$

15,769

 

2024

 

 

15,289

 

2025

 

 

15,165

 

2026

 

 

15,165

 

2027

 

 

12,158

 

Thereafter

 

 

37,495

 

Total

 

$

111,041

 

v3.22.4
Leases
12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases

8. Leases

The Company leases real estate for office and lab space as well as equipment used in research and development activities under operating and finance leases.

 

The Company’s real estate leases have initial lease terms ranging from 13 months to 14.4 years and are all classified as operating. Real estate leases may contain periods of free rent, tenant improvement incentives, expansion options, rent escalation clauses at pre-determined rates or at the prevailing market rates at the time of the increase, and options to extend or terminate the lease without cause at the option of either party during the lease term. The Company is not reasonably certain to exercise these options at the commencement of the lease. Equipment leases have initial lease terms ranging from 12 to 60 months and are classified as operating or finance if the lease contains bargain purchase options which the Company is reasonably certain to exercise.

 

Variable lease cost for real estate leases primarily consists of certain non-lease components such as real estate taxes, insurance and common area maintenance charges. These non-lease components are typically variable in nature and are recognized as lease expense in the period in which they arise. None of the Company's lease agreement contain material restrictive covenants or residual value guarantees.

 

The components of total lease cost were as follows:

 

 

Year ended

 

 

December 31, 2022

 

Operating lease cost

$

35,242

 

Finance lease cost:

 

 

Amortization of ROU assets

 

1,871

 

Interest on lease liabilities

 

104

 

Finance lease cost

 

1,975

 

Variable lease cost

 

8,879

 

Sublease income

 

(5,190

)

Total lease cost

$

40,906

 

 

Rent expense under operating leases was $17.7 million and $7.0 million for the years ended December 31, 2021 and 2020, respectively.

 

Supplemental cash flow information related to the Company’s operating leases were as follows:

 

 

Year ended

 

 

December 31, 2022

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

Operating cash flows from finance leases

$

92

 

Operating cash flows from operating leases

$

13,587

 

Financing cash flows from finance leases

$

1,237

 

 

Supplemental balance sheet information related to operating leases were as follows:

 

 

December 31, 2022

 

Weighted average remaining lease term - operating leases (in years)

 

10.3

 

Weighted average remaining lease term - finance leases (in years)

 

2.3

 

Weighted average discount rate - operating leases

 

8.1

%

Weighted average discount rate - finance leases

 

3.7

%

 

The following table summarizes the maturity of the Company’s lease liabilities (in thousands):

 

Years Ending December 31,

 

Operating leases

 

 

Finance leases

 

2023

 

$

58,111

 

 

$

1,374

 

2024

 

 

62,125

 

 

 

1,079

 

2025

 

 

62,300

 

 

 

452

 

2026

 

 

57,300

 

 

 

19

 

2027

 

 

58,010

 

 

 

 

Thereafter

 

 

366,924

 

 

 

 

Total undiscounted payments

 

 

664,770

 

 

 

2,924

 

Less: imputed interest

 

 

(223,482

)

 

 

(119

)

Total lease liability

 

 

441,288

 

 

 

2,805

 

Less: current portion of lease liability

 

 

(28,032

)

 

 

(1,300

)

Lease liabilities, non-current

 

$

413,256

 

 

$

1,505

 

 

In addition to the lease liabilities in the table above, as of December 31, 2022, the Company had $420.9 million of undiscounted commitments related to operating real estate leases that were signed but not yet commenced. These leases are expected to commence in 2023 and 2024 with lease terms of 13 to 15 years.

 

The Company subleases a portion of its office and lab space to certain of its equity method investees, which are considered related parties. These lease agreements generally have lease terms of up to 5 years and may include renewal options. Related party sublease income for the years ended December 31, 2022, 2021 and 2020 were $3.5 million, $1.1 million and $0.4 million reported within other income (expense), net on the consolidated statements of operations and comprehensive loss.

v3.22.4
Commitments and Contingencies
12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

11. Commitments and Contingencies

Purchase Obligations

On March 31, 2022, the Company entered into a four-year supply agreement with Twist for the purchase of diverse products including synthetic DNA. The agreement is effective as of April 1, 2022 and obligates the Company to spend a minimum of $58.0 million over the four-year term with the following minimum annual commitments (each annual year is defined as April 1 to March 31): year 1, $10.0 million; year 2, $13.0 million; year 3, $16.0 million; and year 4, $19.0 million.

Legal Proceedings

From time to time, the Company may in the ordinary course of business be named as a defendant in lawsuits, indemnity claims and other legal proceedings. Except as described below, the Company does not believe any pending litigation to be material, or that the outcome of any such pending litigation, in management’s judgment based on information currently available, would have a material adverse effect on the Company’s results of operations, cash flows or financial condition.

 

On August 4, 2021, a putative securities class action was filed on behalf of purchasers of the common stock of Zymergen, pursuant to or traceable to the registration statement for Zymergen’s initial public offering (“IPO”). The action is pending in the United States District Court for the Northern District of California, and is captioned Wang v. Zymergen Inc., et al., Case No. 3:21-cv-06028-VC. The action alleges violations of Sections 11 and 15 of the Securities Act of 1933, as amended (the “Securities Act”) in connection with Zymergen’s IPO, names Zymergen, certain of its former officers and directors, and its IPO underwriters, as defendants and seeks damages in an unspecified amount, attorneys’ fees, and other remedies. Zymergen intends to defend vigorously against such allegations.

 

On November 9, 2021, one of Zymergen’s then purported shareholders filed a putative derivative lawsuit in the United States District Court for the Northern District of California that is captioned Mellor v. Hoffman, et al., Case No. 3:21-cv-08723-VC. The complaint names certain of Zymergen’s former officers and directors as defendants and Zymergen as nominal defendant based on allegations substantially similar to those in the securities class action. The complaint purports to assert claims on Zymergen’s behalf for breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement, corporate waste, and contribution under the federal securities laws and seeks corporate reforms, unspecified damages and restitution, and fees and costs. Zymergen intends to defend vigorously against such allegations.

 

On or about February 7, 2023, a complaint was filed by Fortis Advisors LLC, solely in its capacity as Stockholders’ Representative for the holders of convertible promissory notes of Lodo Therapeutics Corporation (“Lodo”), against our subsidiary, Zymergen, in Delaware Superior Court. The complaint purports to allege violations of California securities laws

based on Zymergen’s exchange of its common stock for convertible promissory notes issued by Lodo in connection with Zymergen’s May 2021 acquisition of Lodo. The complaint seeks damages in an unspecified amount, attorneys’ fees, and other remedies. Zymergen intends to defend vigorously against such allegations.

 

In addition, certain government agencies, including the SEC, have requested information related to Zymergen’s August 3, 2021 disclosure. Zymergen is cooperating fully.

Indemnification Agreements

The Company enters into standard indemnification agreements and has agreements with indemnification clauses in the ordinary course of business. Under such arrangements, the Company indemnifies, holds harmless and agrees to reimburse the indemnified party for losses suffered or incurred by the indemnified party, who are generally the Company’s business partners. The terms of these indemnification arrangements are generally perpetual and effective any time after contract execution. The maximum potential liability resulting from these indemnification arrangements may be unlimited. The Company has never incurred costs to defend lawsuits or settle claims as a result of such indemnifications and the Company is not aware of any indemnification arrangements that could have a material effect on its financial position, results of operations or cash flows, and it has not accrued any liabilities related to such obligations as of December 31, 2022.

Registration Rights

In connection with the closing of the SRNG Business Combination, the Company entered into an amended and restated registration rights agreement (the “Registration Rights Agreement”) among the Company, SRNG and certain Old Ginkgo stockholders. Pursuant to the Registration Rights Agreement, the Company will be required to register for resale securities held by the stockholders. The Company will have no obligation to facilitate more than two demands per calendar year for each of the SRNG or the Ginkgo Holders (as defined in the Registration Rights Agreement) that the Company register such stockholders’ securities. In addition, the holders have certain “piggyback” registration rights with respect to registrations initiated by the Company. The Company will bear the expenses incurred in connection with the filing of any registration statements pursuant to the Registration Rights Agreement.

v3.22.4
Stockholders' Equity
12 Months Ended
Dec. 31, 2022
Stockholders' Equity Note [Abstract]  
Stockholders' Equity

12. Stockholders' Equity

 

Capitalization

The following table presents the Company’s authorized, issued, and outstanding common stock as of the dates indicated:

 

 

Authorized

 

 

Issued

 

 

Outstanding

 

Common stock as of December 31, 2022:

 

 

 

 

 

 

 

 

Class A

 

10,500,000,000

 

 

 

1,448,234,796

 

 

 

1,337,498,554

 

Class B

 

4,500,000,000

 

 

 

383,648,604

 

 

 

354,477,410

 

Class C

 

800,000,000

 

 

 

200,000,000

 

 

 

200,000,000

 

 

 

15,800,000,000

 

 

 

2,031,883,400

 

 

 

1,891,975,964

 

Common stock as of December 31, 2021:

 

 

 

 

 

 

 

 

Class A

 

10,500,000,000

 

 

 

1,326,146,808

 

 

 

1,273,976,963

 

Class B

 

4,500,000,000

 

 

 

364,844,007

 

 

 

337,415,189

 

Class C

 

800,000,000

 

 

 

 

 

 

 

 

 

15,800,000,000

 

 

 

1,690,990,815

 

 

 

1,611,392,152

 

 

Shelf Registration Statement

 

On October 4, 2022, the Company filed with the Securities and Exchange Commission (“SEC”) a shelf registration statement on Form S-3 (File No. 333-267743), which was declared effective on October 14, 2022. Under the shelf registration, the Company may offer and sell from time to time, in one or more series or issuances and on terms determined at the time of the offering, any combination of its Class A common stock, preferred stock, warrants and/or units up to an aggregate amount of $500 million. As of December 31, 2022, approximately $400 million remain available under the shelf registration.

 

Underwritten Public Offering

 

On November 15, 2022, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with BTIG, LLC (the “Underwriter”), pursuant to which the Company agreed to issue and sell to the Underwriter an aggregate of 41,383,877 shares at a public offering price of $2.4164 per share, representing an underwriting discount of 9%. Under the terms of the Underwriting Agreement, the Company granted the Underwriter an option exercisable for 30 days to purchase up to an additional 6,207,581 shares of its Class A common stock, which expired unexercised. The shares were sold pursuant to an effective shelf registration statement on Form S-3 (File No. 333-267743) and a related prospectus supplement filed with the SEC. The net proceeds to the Company from the offering was approximately $98.9 million, after deducting estimated offering expenses. The Company intends to use the net proceeds of this offering to offset the cash used to finance the acquisition of certain of the assets and liabilities of Bayer and for other general corporate purposes.

 

Old Ginkgo Convertible Preferred Stock

 

In May and July of 2020, the Company received gross proceeds of $94.4 million from the issuance of 30,855,065 shares of Series E convertible preferred stock to various investors at a price of $3.06 per share.

 

Immediately prior to the closing of the SRNG Business Combination on September 16, 2021, all outstanding Series B, C, D, and E convertible preferred stock converted into shares of Old Ginkgo common stock on a one-for-one basis. Upon closing of the SRNG Business Combination, those shares converted into an aggregate 904.7 million shares of Ginkgo's Class A common stock pursuant to the Exchange Ratio established in the Merger Agreement. All fractional shares were rounded down.

 

Preferred Stock

 

The Company is authorized to issue 200,000,000 shares of preferred stock with a par value $0.0001 per share. The Company’s board of directors are authorized, without stockholder approval, to issue such shares of preferred stock in one or more series, to establish from time to time the number of shares to be included in each such series, and to fix the designations, powers, voting, and other rights, preferences and privileges of the shares. There were no issued and outstanding shares of preferred stock as of December 31, 2022.

 

Common Stock

 

As a result of the SRNG Business Combination, the Company has retroactively restated the shares issued and outstanding prior to September 16, 2021 to give effect to the Exchange Ratio.

 

The Company is authorized to issue 15,800,000,000 shares of common stock, including 10,500,000,000 shares of Class A common stock, par value $0.0001 per share, 4,500,000,000 shares of Class B common stock, par value $0.0001 per share, and 800,000,000 shares of Class C common stock, par value $0.0001 per share.

 

Voting

 

Holders of Class A common stock are entitled to one vote per share and holders of Class B common stock are entitled to ten votes per share. Holders of Class C common stock are not entitled to vote except as otherwise expressly provided in the certificate of incorporation or required by applicable law.

 

Dividends

 

Common stockholders are entitled to receive dividends, as may be declared by the board of directors. Different classes of common stock are legally entitled to equal per share distributions whether through dividends or liquidation. No dividends have been declared to date.

 

Conversion

 

Each share of Class B common stock is convertible at any time at the option of the holder into one share of Class A common stock. Generally, shares of Class B common stock will convert automatically into Class A common stock upon the holder ceasing to be an Eligible Holder (i.e., director, employee, trust or legal entity of Ginkgo), unless otherwise determined by affirmative vote of a majority of independent directors of Ginkgo.

 

Common Stock Reserved for Future Issuances

The Company had the following common stock reserved for future issuance as of the date indicated:

 

 

December 31, 2022

 

Stock options issued and outstanding

 

 

12,906,001

 

Restricted stock units outstanding

 

 

134,436,442

 

Shares available for grant under the 2021 Plan

 

 

185,532,349

 

Shares available for grant under the ESPP

 

 

20,000,000

 

Shares available for grant under the 2022 Inducement Plan

 

 

7,161,125

 

Warrants to purchase Class A common stock

 

 

51,824,895

 

Total common stock reserved for future issuances (1)

 

 

411,860,812

 

(1) Excludes unvested earnout shares which are restricted shares issued to equity holders of Old Ginkgo as part of the SRNG Business Combination (Note 3) and are recorded in equity as shares outstanding upon satisfying the vesting conditions.

v3.22.4
Warrant Liabilities
12 Months Ended
Dec. 31, 2022
Warrants [Abstract]  
Warrant Liabilities

9. Warrant Liabilities

Upon the closing of the SRNG Business Combination, the Company assumed 34,499,925 publicly-traded warrants (“Public Warrants”) and 17,325,000 private placement warrants (the “Private Placement Warrants”) held by the Sponsor. Both the Public Warrants and the Private Placement Warrants were issued in conjunction with the consummation of SRNG’s initial public offering on February 26, 2021. Each whole warrant entitles the holder to purchase one share of the Company’s Class A common stock at a price of $11.50 per share, subject to adjustments. The warrants will expire five years from the completion of the SRNG Business Combination, or earlier upon redemption or liquidation.

 

No Public Warrants will be exercisable for cash unless the Company has an effective and current registration statement covering the issuance of the shares of common stock issuable upon exercise of the Public Warrants. On November 23, 2021, the Company’s registration statement covering such shares became effective. The Company may redeem the outstanding Public Warrants:

in whole and not in part
at a price of $0.01 per Public Warrant;
upon not less than 30 days’ prior written notice of redemption to each warrant holder; and
if, and only if, the reported closing price of the ordinary shares equals or exceeds $18.00 per share (as adjusted for share sub-divisions, share capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the warrant holders.

 

If the Company calls the Public Warrants for redemption, as described above, its management will have the option to require any holder that wishes to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement. The exercise price and number of ordinary shares issuable upon exercise of the Public Warrants may be adjusted in certain circumstances including in the event of a share dividend, extraordinary dividend or recapitalization, reorganization, merger or consolidation. However, except as described above, the Public Warrants will not be adjusted for issuances of ordinary shares at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the Public Warrants.

 

The Private Placement Warrants are identical to the Public Warrants, except that (i) the Private Placement Warrants will be exercisable on a cashless basis and be non-redeemable so long as they are held by the initial purchasers or their permitted transferees and (ii) the Private Placement Warrants and the Class A ordinary shares issuable upon exercise of the Private

Placement Warrants were entitled to registration rights, which was satisfied on November 23, 2021 when the Company’s registration statement covering such shares became effective. If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants.

 

As of December 31, 2022, the aggregate values of the Public Warrants and the Private Placement Warrants was $6.9 million and $4.0 million, respectively, representing warrants outstanding to purchase 35.0 million shares and 16.8 million shares, respectively, of the Company's Class A common stock. The warrants are accounted for as liabilities in accordance with ASC 815-40 and are presented within warrant liabilities on the consolidated balance sheet. The warrant liabilities are measured at fair value at inception and on a recurring basis, with changes in fair value presented within change in fair value of warrant liabilities on the consolidated statements of operations and comprehensive loss. See Note 4 for additional information.

v3.22.4
Supplemental Balance Sheet Information
12 Months Ended
Dec. 31, 2022
Supplemental Balance Sheet Information [Abstract]  
Supplemental Balance Sheet Information

10. Supplemental Balance Sheet Information

Cash, Cash Equivalents and Restricted Cash

The reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet to the totals shown within the consolidated statements of cash flows is as follows (in thousands):

 

 

 

2022

 

 

2021

 

 

2020

 

Cash and cash equivalents

 

$

1,315,792

 

 

$

1,550,004

 

 

$

380,801

 

Restricted cash included in prepaid expenses and other current assets (1)

 

 

8,221

 

 

 

 

 

 

 

Restricted cash included in other non-current assets (1)

 

 

45,568

 

 

 

42,924

 

 

 

5,076

 

Total cash, cash equivalents and restricted cash

 

$

1,369,581

 

 

$

1,592,928

 

 

$

385,877

 

 

(1) Includes cash balances collateralizing letters of credit associated with the Company’s facility leases and a customer prepayment requiring segregation and restrictions in its use in accordance with the customer agreement.

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):

 

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

Prepaid expenses

 

$

18,145

 

 

$

9,739

 

Prepaid insurance

 

 

16,960

 

 

 

9,199

 

Prepaid inventory

 

 

 

 

 

144

 

Notes receivable

 

 

 

 

 

11,559

 

Other receivables

 

 

1,561

 

 

 

2,198

 

Security deposits

 

 

2,084

 

 

 

 

Restricted cash

 

 

8,221

 

 

 

 

Other current assets

 

 

487

 

 

 

698

 

Prepaid expenses and other current assets

 

$

47,458

 

 

$

33,537

 

Inventory, net

Inventory, net consisted of the following (in thousands):

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

Finished goods

 

$

6,556

 

 

$

3,264

 

Raw materials

 

 

1,590

 

 

 

64

 

Work in process

 

 

 

 

 

50

 

Less: Inventory reserve

 

 

(3,782

)

 

 

(16

)

Inventory, net

 

$

4,364

 

 

$

3,362

 

 

 

Property, Plant, and Equipment, net

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

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

Buildings and facilities

 

$

46,019

 

 

$

12,762

 

Furniture and fixtures

 

 

8,206

 

 

 

4,617

 

Lab equipment

 

 

183,292

 

 

 

113,963

 

Computer equipment and software

 

 

15,219

 

 

 

10,129

 

Leasehold improvements

 

 

125,307

 

 

 

55,033

 

Construction in progress

 

 

23,426

 

 

 

10,278

 

Land

 

 

6,060

 

 

 

 

Vehicles

 

 

 

 

 

40

 

Total property, plant, and equipment

 

 

407,529

 

 

 

206,822

 

Less: Accumulated depreciation and amortization

 

 

(92,756

)

 

 

(61,052

)

Property, plant, and equipment, net

 

$

314,773

 

 

$

145,770

 

 

As of December 31, 2021, lab equipment recorded under capital leases in accordance with ASC 840, Leases, totaled $4.1 million, with accumulated depreciation of $2.1 million. Upon the adoption of ASC 842 on January 1, 2022, the Company reclassified capital leases as finance lease ROU assets, which are included in other non-current assets on the consolidated balance sheet as of December 31, 2022. Amortization expense associated with assets recorded under capital leases was included with depreciation and amortization expense for the year ended December 31, 2021.

Additionally, upon the adoption of ASC 842, the Company derecognized build-to-suit assets of $12.8 million classified as facilities as of December 31, 2021, with related accumulated amortization of $1.1 million, and build-to-suit assets of $6.1 million classified as construction in progress as of December 31, 2021.

Depreciation and amortization expense for the years ended December 31, 2022, 2021 and 2020 totaled $36.9 million, $26.9 million and $12.6 million, respectively.

Other Non-Current Assets

Other non-current assets consisted of the following (in thousands):

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

Restricted cash

 

$

45,568

 

 

$

42,924

 

Notes receivable

 

 

37,660

 

 

 

 

Finance lease right-of-use assets, net

 

 

3,256

 

 

 

 

Other assets

 

 

2,241

 

 

 

1,066

 

Other non-current assets

 

$

88,725

 

 

$

43,990

 

 

 

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):

 

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

Employee compensation and benefits

 

$

19,441

 

 

$

6,257

 

Professional fees

 

 

12,178

 

 

 

14,871

 

Property and equipment

 

 

11,624

 

 

 

991

 

Cost of Biosecurity product revenue accruals

 

 

12

 

 

 

4,565

 

Cost of Biosecurity service revenue accruals

 

 

15,401

 

 

 

28,726

 

Inventory related accruals

 

 

1,048

 

 

 

3,538

 

Lab supplies

 

 

3,434

 

 

 

560

 

External research and development expenses

 

 

1,844

 

 

 

11

 

Contingent consideration liability

 

 

6,378

 

 

 

 

Liability classified stock-based compensation

 

 

 

 

 

26,612

 

Finance lease liabilities

 

 

1,300

 

 

 

747

 

Operating lease liabilities

 

 

28,032

 

 

 

 

Other current liabilities

 

 

14,002

 

 

 

6,454

 

Accrued expenses and other current liabilities

 

$

114,694

 

 

$

93,332

 

v3.22.4
Stock-Based Compensation
12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation

13. Stock-Based Compensation

 

The following table summarizes stock-based compensation expense by financial statement line item in the Company’s consolidated statements of operations and comprehensive loss for the periods presented (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Research and development

 

$

731,996

 

 

$

926,730

 

 

$

79

 

General and administrative

 

 

1,198,645

 

 

 

755,835

 

 

 

397

 

Total

 

$

1,930,641

 

 

$

1,682,565

 

 

$

476

 

 

2022 Inducement Plan

On October 16, 2022, the Company's Board of Directors adopted the Ginkgo Bioworks Holdings, Inc. 2022 Inducement Plan (the “2022 Inducement Plan”), which is a non-shareholder approved equity incentive plan adopted pursuant to the “inducement exception” provided under NYSE Listed Company Manual Section 303A.08. Pursuant to the terms of the 2022 Inducement Plan, the Company may grant nonstatutory stock options, stock appreciation rights, restricted stock units, restricted stock and other stock-based awards as an inducement material to individuals being hired or rehired following a bona fide period of interruption of employment, as an employee of the Company or any of its subsidiaries, including in connection with a merger or acquisition. The terms of the 2022 Inducement Plan are substantially similar to the terms of the Company’s 2021 Incentive Award Plan. The Company has reserved 25.0 million shares of the Company’s common stock (which may be shares of Class A common stock or Class B common stock) for issuance under the 2022 Inducement Plan. As of December 31, 2022, 7,161,125 shares are available for future issuance under the 2022 Inducement Plan.

2021 Incentive Award Plans

On September 16, 2021, the 2021 Incentive Award Plan (the “2021 Plan”) became effective. The 2021 Plan provides for the grant of stock options, including incentive stock options (“ISOs”) and nonqualified stock options, stock appreciation rights, restricted stock, dividend equivalents, RSUs and other stock or cash-based awards to employees, consultants and directors of Ginkgo and its subsidiaries.

The aggregate number of shares of common stock available for issuance under the 2021 Plan, which may be issued as Class A common stock and/or Class B common stock, was initially 200,440,957 shares. As of December 31, 2022, 185,532,349 shares are available for future issuance under the 2021 Plan. The number of shares of common stock reserved for issuance under the 2021 Plan will automatically increase for ten years on January 1 of each year in an amount equal to the lesser of (a) 4.0% of the aggregate number of shares of common stock outstanding on the final day of the immediately preceding calendar year and (b) such smaller number of shares as is determined by the Board. The maximum number of shares of common stock that may be issued pursuant to the exercise of incentive stock options granted under the 2021 Plan is 200 million shares. Shares issued under the 2021 Plan may consist of authorized but unissued shares, shares purchased on the open market or treasury shares.

2021 Employee Stock Purchase Plan

On September 16, 2021, the 2021 Employee Stock Purchase Plan (the “ESPP”) became effective. The ESPP authorizes (i) the grant of options that are intended to qualify for favorable U.S. federal tax treatment under Section 423 of the Internal Revenue Code of 1986 (the “Section 423 Component”) and (ii) the grant of options that are not intended to be tax-qualified (the “Non-Section 423 Component”). All of the Company’s employees are expected to be eligible to participate in the ESPP. However, with respect to the Section 423 Component, an employee may not be granted rights to purchase stock under the ESPP if the employee, immediately after the grant, would own (directly or through attribution) stock possessing 5% or more of the total combined voting power or value of all classes of the Company’s common stock.

 

The ESPP permits the Company to deliver up to 20 million shares of common stock pursuant to awards issued under the ESPP, which may be Class A common stock and/or Class B common stock. The number of shares of common stock reserved for issuance under the ESPP will automatically increase each January 1 by an amount equal to the lesser of (a) 1% of the aggregate number of shares of common stock outstanding on the final day of the immediately preceding calendar year and (b) such smaller number of shares as is determined by the Board, provided that no more than 100 million shares may be issued under the Section 423 Component. Prior to or in connection with issuing any shares of common stock under the ESPP, the ESPP administrator may convert awards covering shares of Class B common stock to Class A common stock. As of December 31, 2022, no awards have been granted under the ESPP.

2014 Stock Incentive Plan

The 2014 Stock Incentive Plan (the “2014 Plan”) provided for the Company to grant options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”) and other stock-based awards. From and after the effective date of the 2021 Incentive Award Plan, the Company ceased granting awards under the 2014 Plan. However, the 2014 Plan continues to govern the terms and conditions of the outstanding awards previously granted thereunder. Shares of common stock underlying any awards that are forfeited, cancelled, repurchased, or otherwise terminated by the Company under the 2014 Plan will be added back to the shares available for issuance under the 2021 Incentive Award Plan.

2008 Stock Incentive Plan

The 2008 Stock Incentive Plan (the “2008 Plan”) provided for the Company to grant options and restricted stock awards (“RSAs”). From and after the effective date of the 2014 Stock Incentive Plan, the Company ceased granting awards under the 2008 Plan. However, the 2008 Plan continues to govern the terms and conditions of the outstanding awards previously granted thereunder. Shares of common stock underlying any awards that are forfeited, cancelled, repurchased, or otherwise terminated by the Company under the 2008 Plan will be added back to the shares available for issuance under the 2021 Incentive Award Plan.

Stock Options

Options outstanding under the 2008 Plan and 2014 Plan are fully vested. Options outstanding under the 2021 Plan consist of awards granted to non-employee directors and are of two types: (i) initial awards granted to newly elected or appointed directors, which vest in three equal annual installments, and (ii) subsequent awards, which vest on the earlier of the first anniversary of the grant date or the day prior to the next annual shareholder meeting. All stock options expire no later than ten years after the grant date. The exercise price of each option under the 2021 Plan is equal to the closing price of the Company’s common stock on the date of grant.

A summary of stock option activity for the year ended December 31, 2022 is presented below:

 

 

Number
of Shares

 

 

Weighted
Average
Exercise
Price
per Share

 

 

Weighted
Average
Remaining
Contractual
Term

 

 

 

Aggregate
Intrinsic
Value
(1)

 

 

 

 

 

 

 

 

 

(in years)

 

 

 

(in thousands)

 

Outstanding as of December 31, 2021

 

 

22,454,663

 

 

$

0.05

 

 

 

 

 

 

 

 

Granted

 

 

922,227

 

 

$

2.87

 

 

 

 

 

 

 

 

Exercised

 

 

(12,876,227

)

 

$

0.02

 

 

 

 

 

 

 

 

Outstanding as of December 31, 2022

 

 

10,500,663

 

 

$

0.34

 

 

 

2.06

 

 

 

 

$

15,902

 

Exercisable as of December 31, 2022

 

 

9,543,914

 

 

$

0.06

 

 

 

1.31

 

 

 

 

$

15,902

 

 

(1) The aggregate intrinsic value is calculated as the difference between the Company's closing stock price on the last trading day of the year and the exercise prices, multiplied by the number of in-the-money stock options.

The aggregate intrinsic value of stock options exercised during the years ended December 31, 2022, 2021 and 2020 was $21.5 million, $91.0 million and $5.3 million, respectively. The weighted-average fair value of options granted during the years ended December 31, 2022 and 2021 was $1.92 and $8.97 per share, respectively, and was calculated using the following assumptions. No options were granted during 2020.

 

 

Year Ended

 

 

Year Ended

 

 

 

December 31, 2022

 

 

December 31, 2021

 

Risk-free interest rate

 

 

3.13

%

 

 

0.11

%

Dividend yield

 

 

0

%

 

 

0

%

Expected volatility

 

 

76.9

%

 

 

88.6

%

Expected term

 

5.6 years

 

 

0.96 years

 

As of December 31, 2022, there was $1.2 million of unrecognized compensation expense related to stock options to be recognized over a weighted-average period of 1.4 years.

Restricted Stock and Restricted Stock Units

RSAs granted under the 2014 Plan are subject to a service-based vesting condition and generally vest in equal monthly installments over four years. RSUs granted under the 2014 Plan are subject to two vesting conditions: (i) a service-based vesting condition that is generally met over four years with 25% of the shares vesting on the first anniversary of the grant date with monthly vesting thereafter, and (ii) a performance-based vesting condition that is met through a liquidity event in the form of either a change of control or an initial public offering (“the performance condition”). RSUs granted under the 2021 Plan are subject to a service-based vesting condition only that is generally met over four years with 25% of the shares vesting on the first anniversary of the grant date with monthly vesting thereafter.

Prior to the SRNG Business Combination, no stock-based compensation expense had been recognized related to RSUs granted under the 2014 Plan as the performance condition was not probable of being met and the SRNG Business Combination did not meet the definition of a liquidity event as defined in the 2014 Plan. As a result of the SRNG Business Combination, on November 17, 2021 (“Modification Date”) the Board of Directors modified the vesting terms of RSUs granted under the 2014 Plan to allow 10% of the RSUs that met the service condition as of the closing of the SRNG Business Combination (the “10% RSUs”) to vest with respect to the performance condition, effective as of November 19, 2021, the date on which the Form S-8 registration statement covering such shares became effective. In addition, on November 17, 2021 the Board of Directors modified the vesting terms of the remaining RSUs granted under the 2014 Plan such that they will vest in full with respect to the performance condition on or before March 15, 2022 (the original service-based vesting condition is still applicable). As a result of these modifications, the performance condition for all RSUs granted under the 2014 Plan became probable of being met during the fourth quarter of 2021. As the performance condition was not probable of being met prior to the modification, the RSU awards were remeasured using the price of $13.59 per share as of the Modification Date pursuant ASC 718 and the Company recorded a cumulative-catch up adjustment to reflect the change in the probability assessment. The modification resulted in approximately $1,492.2 million of incremental stock-based compensation expense recognized in the fourth quarter of 2021 based on the Modification Date fair value. The Company cash settled the 10% RSUs for a total cash payment of $76.5 million equal to the fair value of the stock on the Form S-8 effective date. Subsequent to the

modification, compensation expense for the modified RSUs is recognized using an accelerated attribution method over the requisite service period for each employee award. The Company recognized $1,678.4 million of compensation expense related to the modified RSUs in the year ended December 31, 2022.

In September 2021, the Board of Directors modified the terms of RSUs granted to non-employee directors by adding a cash settlement feature to the awards which allowed the non-employee directors to elect to settle in cash up to 50% of their RSUs that were vested with respect to the service condition on or prior to December 31, 2021 (the “50% RSUs”). The director RSUs were subject to the same performance condition as all other RSUs granted under the 2014 Plan. In the fourth quarter of 2021, all directors elected to cash settle the 50% RSUs. As a result, the 50% RSUs are classified as liability awards and the liability is measured at fair value at the reporting date. The aggregate fair value of the liability classified awards was $26.6 million as of December 31, 2021 which is included in accrued expenses and other current liabilities on the consolidated balance sheet. In the first quarter of 2022, the Company cash settled the 50% RSUs, or approximately 3.2 million RSUs, for a total cash payment of $9.8 million.

A summary of the RSU and RSA activity for the year ended December 31, 2022 is presented below:

 

 

Restricted Stock Units

 

 

Restricted Stock Awards

 

 

 

Number of
Shares

 

 

Weighted
Average
Grant Date
Fair Value

 

 

Number of
Shares

 

 

Weighted
Average
Grant Date
Fair Value

 

Nonvested as of December 31, 2021

 

 

168,321,952

 

 

$

13.58

 

 

 

182,622

 

 

$

1.99

 

Granted

 

 

111,541,317

 

 

$

3.19

 

 

 

 

 

 

 

Vested

 

 

(136,182,791

)

 

$

13.10

 

 

 

(178,531

)

 

$

1.99

 

Forfeited

 

 

(9,244,036

)

 

$

7.79

 

 

 

 

 

 

 

Nonvested as of December 31, 2022

 

 

134,436,442

 

 

$

5.84

 

 

 

4,091

 

 

$

1.99

 

 

The weighted average grant date fair value of RSUs granted during the years ended December 31, 2022, 2021 and 2020 was $3.19, $13.53 and $2.68, respectively. The weighted average grant date fair value of RSUs granted during the year ended December 31, 2021 of $13.53 per share represents the weighted average of the Modification Date fair value and any post modification grant date fair values. The weighted average grant date fair value of RSUs granted during the year ended December 31, 2020 of $2.68 per share is no longer relevant for expense recognition due to the modification in the fourth quarter of 2021. No RSAs were granted during 2022, 2021, and 2020.

 

The aggregate fair value of the RSUs that vested during the years ended December 31, 2022 and 2021 was $1,783.8 million and $1,149.5 million, respectively. No RSUs vested during 2020 as the performance condition was not probable of being met. The aggregate fair value of the RSAs that vested during the years ended December 31, 2022, 2021 and 2020 was $0.4 million, $0.5 million and $0.5 million, respectively.

 

As of December 31, 2022, there was $462.2 million of unrecognized compensation expense related to RSUs to be recognized over a weighted-average period of 3.2 years and less than $0.1 million of unrecognized compensation expense related to RSAs to be recognized over a weighted-average period of 0.2 years.

Earnouts

As described in Note 3, the holders of Rollover Equity Awards outstanding immediately prior to the effective time of the SRNG Business Combination received a proportional amount of the Earnout Consideration, which is divided into four equal tranches subject to vesting during the five years after the Closing Date (the “Earnout Period”). The earnout shares in respect of the Rollover Equity Awards are subject to the same terms and conditions as the underlying Rollover Equity Awards (including with respect to vesting and termination-related provisions). Additionally, the earnout shares in respect of the Rollover Equity Awards are subject to a market condition that will be met when the trading price of the Company's common stock is greater than or equal to $12.50, $15.00, $17.50 and $20.00 for any 20 trading days within any period of 30 consecutive trading days during the Earnout Period (collectively, the “Earnout Targets”). To the extent that the Earnout Targets are not achieved during the Earnout Period, the portion of the Earnout Consideration that remains subject to vesting and forfeiture at the end of the Earnout Period will be forfeited to Ginkgo for no consideration and cancelled.

 

As described above, the earnout shares related to Old Ginkgo RSUs (“Earnout RSUs”) are subject to the same performance condition as the underlying RSUs. As a result of the November 2021 modification to the RSUs described above, the performance condition became probable of being met in the fourth quarter of 2021. The modification resulted in

approximately $173.5 million of incremental stock-based compensation expense recognized in the fourth quarter of 2021 related to the Earnout RSUs based on the Modification Date fair value. The first earnout target of $12.50 per share was met on November 15, 2021 and the earnout shares related to the first tranche of the Earnout Consideration for which the service condition had also been met became vested and were settled, less shares withheld to cover tax withholding obligations. The Company recognized $193.3 million of compensation expense related to the modified Earnout RSUs in the year ended December 31, 2022.

 

The grant date fair value of Earnout RSUs was estimated on the Closing Date and remeasured on the Modification Date using a Monte Carlo simulation model with the following assumptions:

 

 

Year Ended

 

 

 

December 31, 2021

 

Risk-free interest rate

 

0.84% - 1.21%

 

Expected volatility

 

53.1% - 81%

 

Expected term (in years)

 

4.83 - 5

 

Dividend yield

 

 

 

 

A summary of activity during the year ended December 31, 2022 for the Earnout RSUs and the earnout shares underlying Old Ginkgo RSAs ("Earnout RSAs") is presented below:

 

 

Number of
Shares

 

 

Weighted
Average
Grant Date
Fair Value

 

Nonvested as of December 31, 2021

 

 

27,863,125

 

 

$

12.87

 

Vested

 

 

(3,899,088

)

 

$

13.33

 

Forfeited

 

 

(444,075

)

 

$

12.92

 

Nonvested as of December 31, 2022

 

 

23,519,962

 

 

$

12.79

 

 

The aggregate fair value of the Earnout RSUs and Earnout RSAs that vested during the year ended December 31, 2022 was $52.0 million.

As of December 31, 2022, there was $21.2 million of unrecognized compensation expense related to earnout shares to be recognized over a weighted-average period of 2.0 years.

v3.22.4
Revenue Recognition
12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

14. Revenue Recognition

Disaggregation of Revenue

The following table sets forth the percentage of total Foundry revenue by industry:

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Consumer and technology

 

 

45

%

 

 

36

%

 

 

12

%

Pharma and Biotech

 

 

22

%

 

 

8

%

 

 

2

%

Industrial and environment

 

 

12

%

 

 

16

%

 

 

29

%

Food and nutrition

 

 

9

%

 

 

25

%

 

 

35

%

Agriculture

 

 

8

%

 

 

8

%

 

 

13

%

Government and Defense

 

 

4

%

 

 

7

%

 

 

9

%

Total Foundry revenue

 

 

100

%

 

 

100

%

 

 

100

%

 

The Company’s revenue is derived from customers located primarily in the United States. For the years ended December 31, 2022, 2021, and 2020, the Company’s revenue from customers within the United States comprised 88%, 86% and 88%, respectively, of total revenue.

Contract Balances

The Company recognizes a contract asset when the Company transfers goods or services to a customer before the customer pays consideration or before payment is due, excluding any amounts presented as accounts receivable. The Company did not have any contract assets as of December 31, 2022 and 2021.

Contract liabilities, or deferred revenue, primarily consist of payments received in advance of performance under the contract or when the Company has an unconditional right to consideration under the terms of the contract before it transfers goods or services to the customer. The Company’s collaborative arrangements with its equity investees and related parties typically include upfront payments consisting of cash or non-cash consideration for future research and development services and non-cash consideration in the form of equity securities for licenses that will be transferred in the future. The Company records the upfront cash payments and fair value of the equity securities as deferred revenue.

The Company also invoices customers based on contractual billing schedules, which results in the recording of deferred revenue to the extent payment is received prior to the Company’s performance of the related services. Contract liabilities are recognized as revenue as (or when) the Company performs under the contract.

During the year ended December 31, 2022, the Company recognized $45.6 million of revenue that was included in the contract liabilities balance of $189.2 million as of December 31, 2021. During the year ended December 31, 2021, the Company recognized $28.8 million of revenue that was included in the contract liabilities balance of $128.5 million as of December 31, 2020.

Performance Obligations

The aggregate amount of the transaction price that was allocated to performance obligations that have not yet been satisfied or are partially satisfied as of December 31, 2022 and 2021 was $123.5 million and $21.1 million, respectively. The Company has elected the practical expedient not to provide the remaining performance obligation disclosures related to contracts for which the Company recognizes revenue on a cost-plus basis in the amount to which it has the right to invoice and for contracts with a term of one year or less. As of December 31, 2022, of the performance obligations not yet satisfied or partially satisfied, nearly all is expected to be recognized as revenue during the years 2023 to 2025. When a milestone subject to the variable consideration constraint is achieved, the Company updates its estimate of the transaction price to include the milestone payment and records a cumulative catch-up in revenue. During the years ended December 31, 2022 and 2021, the Company recorded $10.0 million and $6.4 million, respectively, of cumulative catch-up in revenue primarily due to recognition of previously constrained variable consideration related to milestones. The cumulative catch-up adjustment in 2020 was not material.

v3.22.4
Segment Information
12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Information

15. Segment Information

Prior to 2022, the Company operated as a single reportable segment. In the first quarter of 2022, the Company reorganized its operations into two operating and reportable segments: Foundry and Biosecurity. The reorganization reflects changes made to the Company's internal management structure and how the Company's chief operating decision makers (“CODMs”) evaluate operating results and make decisions on how to allocate resources. All prior-period comparative segment information was recast to reflect the current reportable segments in accordance with ASC 280, Segment Reporting. The Company's reportable segments are described as follows:

Foundry consists of research and development services performed under collaboration and license agreements relating to the Company’s cell programming platform. The Company’s cell programming platform includes two core assets: the Foundry, highly efficient biology lab facilities, enabled by investment in proprietary workflows, custom software, robotic automation, and data science and analytics, which is paired with the Company’s Codebase, a collection of biological “parts” and a database of biological data used to program cells. The Foundry segment includes costs incurred for the development, operation, expansion and enhancement of the Foundry and Codebase. Foundry revenue, which we may also refer to as cell engineering revenue, is derived from Foundry usage fees and downstream value share in the form of milestone payments, royalties or equity interests.
Biosecurity consists of COVID-19 testing products and services primarily provided to public health authorities. Biosecurity revenue is derived from sales of test kits and testing and reporting services fees.

 

The reportable segments are the segments of the Company for which discrete financial information is available and for which segment results are regularly reviewed by the Company's CODMs, comprised of the Chief Executive Officer and the Chief Operating Officer, for purposes of allocating resources and assessing financial performance. The Company’s CODMs evaluate the financial performance of the Company’s segments based upon segment revenues and operating income. The Company’s measure of segment operating income for management reporting purposes excludes the impact of stock-based compensation expense, depreciation and amortization and changes in fair value of certain contingent liabilities. The Company’s CODMs do not evaluate operating segments using asset information. The accounting policies used in the preparation of reportable segments financial information are the same as those used in the preparation of the Company’s consolidated financial statements.

 

The following table presents summary results of the Company’s reportable segments for the periods indicated (in thousands):

 

Year Ended December 31,

 

 

2022

 

 

2021

 

 

2020

 

Revenue:

 

 

 

 

 

 

 

 

Foundry

$

143,666

 

 

$

112,989

 

 

$

59,221

 

Biosecurity

 

334,040

 

 

 

200,848

 

 

 

17,436

 

Total revenue

 

477,706

 

 

 

313,837

 

 

 

76,657

 

Segment cost of revenue:

 

 

 

 

 

 

 

 

Biosecurity

 

204,216

 

 

 

129,690

 

 

 

15,611

 

Segment research and development expense:

 

 

 

 

 

 

 

 

Foundry

 

273,356

 

 

 

160,634

 

 

 

84,755

 

Biosecurity

 

1,937

 

 

 

31,035

 

 

 

62,219

 

Total segment research and development expense

 

275,293

 

 

 

191,669

 

 

 

146,974

 

Segment general and administrative expense:

 

 

 

 

 

 

 

 

Foundry

 

168,586

 

 

 

74,407

 

 

 

32,698

 

Biosecurity

 

56,353

 

 

 

31,039

 

 

 

4,813

 

Total segment general and administrative expense

 

224,939

 

 

 

105,446

 

 

 

37,511

 

Segment operating income (loss):

 

 

 

 

 

 

 

 

Foundry

 

(298,276

)

 

 

(122,052

)

 

 

(58,232

)

Biosecurity

 

71,534

 

 

 

9,084

 

 

 

(65,207

)

Total segment operating loss

 

(226,742

)

 

 

(112,968

)

 

 

(123,439

)

Operating expenses not allocated to segments:

 

 

 

 

 

 

 

 

Stock-based compensation (1)

 

1,940,920

 

 

 

1,687,607

 

 

 

476

 

Depreciation and amortization

 

42,552

 

 

 

28,185

 

 

 

13,112

 

Change in fair value of contingent consideration liability

 

(1,262

)

 

 

(293

)

 

 

 

Loss from operations

$

(2,208,952

)

 

$

(1,828,467

)

 

$

(137,027

)

(1) Includes $10.3 million and $5.0 million in employer payroll taxes for the years ended December 31, 2022 and 2021. Employer payroll taxes for the year ended December 31, 2020 were not material.

v3.22.4
Significant Collaboration Transactions
12 Months Ended
Dec. 31, 2022
Significant Collaboration Transactions [Abstract]  
Significant Collaboration Transactions

16. Significant Collaboration Transactions

BiomEdit, LLC

In April 2022, the Company, along with one of its investors and third-party investors, including Elanco Animal Health Inc. (“Elanco”), launched BiomEdit, LLC (“BiomEdit”), a microbiome innovation company that intends to discover, design and develop novel probiotics, microbiome derived bioactives and engineered microbial medicines in the field of animal health. Concurrently with the launch, the Company entered into (i) an Intellectual Property Contribution Agreement (“BiomEdit IP Agreement”) that granted BiomEdit a license to certain of the Company’s intellectual property, (ii) a Technical Development Agreement (“BiomEdit TDA”) that establishes the terms under which the Company will provide technical research and development services, and (iii) a Common Unit Issuance Agreement (“BiomEdit CUIA”) which compensates the Company for its intellectual property contribution. Contemporaneous with these agreements, BiomEdit entered into a Series A Preferred Unit Purchase Agreement under which it sold 6,662,500 Series A preferred units to one of the Company’s investors and a third-party investor, for aggregate proceeds of approximately $32.5 million. After the initial closing, BiomEdit may issue up to an additional 1,537,500 Series A preferred units (the “Additional Units”) to one or more purchasers reasonably acceptable to the existing holders of Series A preferred units.

 

Under the BiomEdit IP Agreement, the Company licensed certain intellectual property to BiomEdit for use in the development or production of BiomEdit’s products that the parties will subsequently agree to research and develop under technical development plans (“TDP”). The license rights provide BiomEdit with the ability to commercialize the specified products from the corresponding TDP under the BiomEdit TDA. In return for the license to the intellectual property, BiomEdit issued the Company 3,900,000 common units upon execution of the BiomEdit CUIA. In the event BiomEdit does not sell all of the Additional Units, up to 731,250 common units held by Ginkgo will be forfeited. Under the BiomEdit TDA, the parties jointly agree on TDPs, through equal representation on a joint steering committee, under which the Company will perform agreed-upon research and development services in return for consideration on a fixed fee or cost-plus basis for all services provided.

 

Accounting Analysis

 

The common unit investment in BiomEdit is considered an equity method investment as a result of the Company’s ability to exercise significant influence over BiomEdit’s financial and operating policies through its ownership of common units. The initial carrying value of the equity method investment in BiomEdit is the fair value of the nonforfeitable common units of $8.9 million received in exchange for the BiomEdit IP Agreement which, as discussed below, is being accounted for as non-cash consideration under ASC 606. The Company determined that the 731,250 common units held by Ginkgo subject to forfeiture are considered variable consideration that is fully constrained at contract inception until the contingencies related to the issuance of the additional shares are resolved. The fair value of BiomEdit’s common units was determined at inception of the agreements using the option pricing method. The option pricing method used a back-solve methodology to infer the total equity value based on the pricing of the Series A preferred unit financing, which was contemporaneous with the BiomEdit IP Agreement.

 

The Series A preferred units issued by BiomEdit receive a liquidation preference prior to common units. As such, the Company concluded that this represents a substantive profit-sharing arrangement, and the Company is recognizing earnings and losses on the equity method investment using the HLBV method. The Company recorded a $8.5 million loss on its equity method investment in BiomEdit during the year ended December 31, 2022. As of December 31, 2022, the carrying value of the equity method investment in BiomEdit was $0.4 million.

 

The relationship with BiomEdit is a vendor-customer relationship and is within the scope of ASC 606, as the provision of services and corresponding license rights are considered a part of the Company’s ordinary activities. The common units issued to the Company represent non-cash consideration. While the BiomEdit TDA has been executed by the parties and provides the payment terms for future services, the BiomEdit TDA does not provide for any transfer of goods or services between the parties. However, the Company will provide licenses and services upon execution of the contemplated TDPs. Accordingly, the Company concluded that the BiomEdit TDA, in combination with the BiomEdit CUIA, met the definition of a contract under ASC 606. Each TDP executed under the BiomEdit TDA will be accounted for in accordance with ASC 606.

 

The Company’s performance obligations under the BiomEdit TDA consist of four material rights to future technical research and development services and commercial licenses under individual TDPs that the Company expects to execute. The material rights represent an advance payment for the license rights, which will be granted upon the execution of future TDPs. As there is no additional payment for these license rights when future TDPs are executed, the Company has determined that there is a material right associated with each of the contemplated TDPs under the BiomEdit TDA. The Company has allocated approximately $2.2 million of the upfront non-cash consideration to each of the four material rights based on the estimated standalone selling price of the performance obligations.

 

Upon the execution of a TDP underlying a material right, the Company is obligated to provide technical research and development services under the TDP and a license to applicable patents and other intellectual property designed and developed under the TDP. The technical research and development services and license provided under a TDP are highly interdependent and interrelated with one another. Without the Company’s knowledge, expertise, and platform, there would not be a licensable strain or other commercializable product to transfer to BiomEdit. Further, BiomEdit has rights to intellectual property created as part of each TDP, irrespective of the result of the development. Therefore, each executed TDP underlying a material right consists of one combined performance obligation for the technical research and development services and license to be provided by the Company.

 

For each TDP underlying a material right, the transaction price consists of (i) either a fixed fee or, if a cost-plus arrangement, variable consideration for the most likely amount of estimated consideration to be received and (ii) non-cash consideration allocated to the material rights. As the services performed by the Company under a TDP create or enhance an asset that

BiomEdit controls as the asset is created or enhanced, the Company satisfies the performance obligation and recognizes revenue over time. The Company uses an input method that compares total costs incurred relative to total estimated cost to complete to estimate progress under the contract. Any revisions to the estimated total budgeted costs to complete, and the resulting impact to revenue recognition, are reflected in the period of the change through a cumulative catch-up adjustment.

 

As of December 31, 2022, the Company had a deferred revenue balance of $8.1 million with BiomEdit. During the year ended December 31, 2022, the Company recognized revenue of $1.0 million from services provided to BiomEdit.

Arcaea, LLC

Summary of Arrangement

Arcaea was formed in March 2021 to focus on the application of synthetic biology in the personal care products industry. In March 2021, the Company entered into (i) an Intellectual Property Contribution Agreement (“Arcaea IP Agreement”) that granted Arcaea a license to certain of the Company’s intellectual property, (ii) a Technical Development Agreement (“Arcaea TDA”) that establishes the terms under which the Company will provide technical research and development services, and (iii) a Common Unit Issuance Agreement (“Arcaea CUIA”) which compensates the Company for its intellectual property contribution. Contemporaneous with these transactions, Arcaea entered into a Series A Preferred Unit Purchase Agreement under which it sold 1,755,000 Series A preferred units to certain of the Company’s investors, for aggregate proceeds of approximately $19.5 million. The Series A Preferred Unit Purchase Agreement provided for the sale and issuance of up to an additional 7,245,000 Series A preferred units subsequent to the initial closing. In subsequent closings during 2021, Arcaea issued an additional 5,139,900 Series A preferred units to existing and third-party investors for aggregate proceeds of approximately $57.1 million and closed its Series A preferred unit financing. As a result, the Company received an additional 5,229,900 common units in Arcaea for total consideration of $35.5 million.

Under the Arcaea IP Agreement, the Company licensed certain intellectual property to Arcaea for use in the development or production of Arcaea’s products that the parties will subsequently agree to research and develop under TDPs. The license rights provide Arcaea with the ability to commercialize the specified products from the corresponding TDP under the Arcaea TDA. In return for the license to the intellectual property, Arcaea has agreed to issue the Company up to 9,000,000 common units in accordance with certain terms and conditions set forth within the agreements. The Company received 1,755,000 common units upon execution of the Arcaea CUIA and an additional 5,229,900 common units upon subsequent closings of the Series A preferred unit financing in 2021 (as discussed above). No additional common units are expected to be issued to the Company.

Under the Arcaea TDA, the parties jointly agree on TDPs, through equal representation on a joint steering committee, under which the Company will perform agreed-upon research and development services in return for consideration on a cost-plus basis for all services provided.

Accounting Analysis

 

The common unit investment in Arcaea is considered an equity method investment as a result of the Company’s ability to exercise significant influence over Arcaea’s financial and operating policies through its ownership of common units. The initial carrying value of the equity method investment in Arcaea is the fair value of the common units of $11.9 million received in exchange for the Arcaea IP Agreement which, as discussed below, was accounted for as deferred revenue at inception. The fair value of Arcaea’s common units was determined at inception of the agreements using the option pricing method. The option pricing method used a back-solve methodology to infer the total equity value based on the pricing of the Series A preferred unit financing, which was contemporaneous with the Arcaea IP Agreement. Further, the Company determined the rights to up to an additional 7,245,000 common units did not meet the definition of a freestanding financial instrument and are not representative of a derivative. The right to the additional common units is considered variable consideration that is fully constrained at inception and until the contingencies related to the issuance of the additional shares are resolved.

 

The Series A preferred units issued by Arcaea receive a liquidation preference prior to common units. As such, the Company concluded that this represents a substantive profit-sharing arrangement, and the Company is recognizing earnings and losses on the equity method investment using the HLBV method. The Company recorded a $11.9 million loss on its equity method investment in Arcaea in 2021. The loss allocated to the Company primarily relates to Arcaea’s accounting for the non-cash consideration related to the Arcaea IP Agreement as in-process research and development, which resulted in the full value of the Company’s intellectual property contribution being expensed in 2021. As of December 31, 2021, the carrying value of the

equity method investment in Arcaea has been reduced to zero. There is no commitment for the Company to provide further financial support to Arcaea, and therefore the carrying value of the equity method investment will not be reduced below zero.

 

The relationship with Arcaea is a vendor-customer relationship and is within the scope of ASC 606, as the provision of services and corresponding license rights are considered a part of the Company’s ordinary activities. The common units issued to the Company represent non-cash consideration. While the Arcaea TDA has been executed by the parties and provides the payment terms for future services, the Arcaea TDA does not provide for any transfer of goods or services between the parties. However, the Company will provide licenses and services upon execution of the contemplated TDPs. Accordingly, the Company concluded that the Arcaea TDA, in combination with the Arcaea CUIA, met the definition of a contract under ASC 606. Each TDP executed under the Arcaea TDA will be accounted for in accordance with ASC 606.

 

The Company’s performance obligations under the contract consist of ten material rights to future technical research and development services and commercial licenses under individual TDPs that the Company expects to execute under the Arcaea TDA. The material rights represent an advance payment for the license rights, which will be granted upon the execution of future TDPs. As there is no additional payment for these license rights when future TDPs are executed, the Company has determined that there is a material right associated with each of the contemplated additional TDPs under the Arcaea TDA. The Company has allocated approximately $1.2 million of the upfront non-cash consideration to each of the ten material rights based on the estimated standalone selling price of the performance obligations. During the year ended December 31, 2021, the additional $35.5 million of non-cash consideration, which represents previously constrained variable consideration, was allocated to each of the ten performance obligations under the arrangement with Arcaea of $3.6 million each consistent with the initial relative selling price allocation. Unexercised material rights are recorded as non-current deferred revenue until such time as the parties execute a TDP conveying a commercial license.

 

Upon the execution of a TDP underlying a material right, the Company is obligated to provide technical research and development services under the TDP and a license to applicable patents and other intellectual property designed and developed under the TDP. The technical research and development services and license provided under a TDP are highly interdependent and interrelated with one another. Without the Company’s knowledge, expertise, and platform, there would not be a licensable strain or other commercializable product to transfer to Arcaea. Further, Arcaea has rights to intellectual property created as part of each TDP, irrespective of the result of the development. Therefore, each executed TDP underlying a material right consists of one combined performance obligation for the technical research and development services and license to be provided by the Company.

 

For each TDP underlying a material right, the transaction price consists of variable consideration for the most likely amount of estimated consideration to be received under the cost-plus arrangement and non-cash consideration allocated to the material rights. As the services performed by the Company under a TDP create or enhance an asset that Arcaea controls as the asset is created or enhanced, the Company satisfies the performance obligation and recognizes revenue over time. The Company uses an input method that compares total costs incurred relative to total estimated cost to complete to estimate progress under the contract. Any revisions to the estimated total budgeted costs to complete, and the resulting impact to revenue recognition, are reflected in the period of the change through a cumulative catch-up adjustment.

 

As of December 31, 2022 and 2021, the Company had a deferred revenue balance of $38.3 million and $47.4 million, respectively, with Arcaea. During the years ended December 31, 2022 and 2021, the Company recognized revenue of $13.5 and $3.7 million, respectively, from services provided to Arcaea.

Allonnia, LLC

Summary of Arrangement

In December 2019, the Company entered into (i) an Intellectual Property Contribution Agreement (“Allonnia IP Agreement”) that granted Allonnia a license to certain of the Company’s intellectual property, (ii) a Technical Development Agreement (“Allonnia TDA”) that establishes the terms under which the Company is providing technical development services, and (iii) a Common Unit Issuance Agreement which provides for the issuance of common units of Allonnia to the Company in exchange for the license rights granted under the Allonnia IP Agreement. Contemporaneous with these agreements, Allonnia entered into a Series A Preferred Unit Purchase Agreement under which Allonnia sold 2,970,000 Series A Preferred Units to certain of the Company’s investors, as well as a third-party investor, for aggregate proceeds of approximately $33.0 million. Allonnia also agreed to issue an additional 630,000 Series A Preferred Units to a strategic partner as compensation for the delivery of future services to Allonnia. The Series A Preferred Unit Purchase Agreement also provided for the sale and issuance of up to an additional 5,400,000 Series A Preferred Units subsequent to the initial closing. In 2020, Allonnia issued

an additional 1,844,911 Series A Preferred Units, 1,664,911 of which were sold for aggregate proceeds of $18.5 million and 180,000 of which were issued in exchange for the rights to certain intellectual property which will vest based on the achievement of milestones associated with the development of the intellectual property received. In 2021, Allonnia issued an additional 22,500 Series A Preferred Units for aggregate proceeds of $0.2 million and closed their Series A Preferred Unit financing.

Under the Allonnia IP Agreement, the Company licensed intellectual property to Allonnia for use in the development or production of its products that the parties will subsequently agree to develop under TDPs. The license rights provide Allonnia with the ability to commercialize the specified products from the corresponding strain or enzyme, which can only be developed by the Company under the Allonnia TDA. The Company received 3,600,000 common units as consideration for the license upon execution of the Allonnia IP Agreement and an additional 1,867,411 common units during the year ended December 31, 2021 in connection with the closing of the Series A preferred unit financing.

Under the Allonnia TDA, the parties jointly agree, through equal representation on a joint steering committee, on TDPs for specific strains and enzymes, in which the Company will perform agreed upon development services in return for consideration on a cost-plus basis for all services provided.

Accounting Analysis

The common unit investment in Allonnia is considered an equity method investment as a result of the Company’s ability to exercise significant influence over Allonnia's financial and operating policies through its ownership of common units. The initial carrying value of the equity method investment in Allonnia is the fair value of the common units of $24.5 million received in exchange for the Allonnia IP Agreement which, as discussed below, was accounted for as deferred revenue at inception. The fair value of Allonnia’s common units was determined at inception of the agreements using the option pricing method. The option pricing method used a back-solve methodology to infer the total equity value based on the pricing of the Series A Preferred Unit financing, which was contemporaneous with the Allonnia IP Agreement. Further, the Company determined the rights to up to an additional 5,400,000 common units did not meet the definition of a freestanding financial instrument and are not representative of a derivative. The right to the additional common units is considered variable consideration that is fully constrained at inception and until the contingencies related to the issuance of the additional shares are resolved. This contingency was resolved in 2021 when the Company received an additional 1,867,411 common units in connection with the closing of the Series A preferred unit financing.

The Series A Preferred Units issued by Allonnia receive a liquidation preference prior to common units. As such, the Company concluded that this represents a substantive profit-sharing arrangement and the Company is recognizing earnings and losses on the equity method investment using the HLBV method. The Company recorded a loss on equity method investment of $24.5 million in 2019 and $12.7 million in 2021 as a result of the application of the HLBV method. The loss allocated to the Company primarily relates to Allonnia’s accounting for the non-cash consideration related to the Allonnia IP Agreement as in-process research and development, which resulted in the full value of the Company’s intellectual property contribution being expensed in the year that the shares were issued. As of December 31, 2021, the carrying value of the equity method investment in Allonnia has been reduced to zero. There is no commitment for the Company to provide further financial support to Allonnia and therefore the carrying value of the equity method investment will not be reduced below zero.

The relationship with Allonnia is a vendor-customer relationship and is within the scope of ASC 606 as the provision of services and corresponding license rights are considered a part of the Company’s ordinary activities and the common units represent non-cash consideration. While the Allonnia TDA has been executed by the parties and provides the payment terms for future services, the Allonnia TDA does not provide for any transfer of goods or services between the parties. However, the Company will provide licenses and services upon execution of the contemplated TDPs. Accordingly, the Company concluded that the Allonnia TDA met the definition of a contract under ASC 606 and each TDP executed under the Allonnia TDA will be accounted for in accordance with ASC 606.

The Company’s performance obligations under the contract consist of ten material rights related to the estimated number of TDPs the parties expect to execute under the Allonnia TDA. The material rights represent an advance payment for the license rights which will be granted upon the execution of each TDP. As there is no additional payment for these license rights upon execution of a TDP, the Company has determined that there is a material right associated with each of the contemplated future TDPs. The Company has allocated $2.5 million of the upfront non-cash consideration to each of the ten performance

obligations under the contract based on the estimated standalone selling price of the performance obligations. Unexercised material rights are recorded as non-current deferred revenue until such time as the parties execute a TDP.

Upon the execution of each TDP, the Company is obligated to provide development services under the TDP and a license to applicable patents and other intellectual property to the ingredient developed under the plan. The license and research and development services under a TDP are highly interdependent and interrelated with one another. Without the Company’s knowledge, expertise, and platform, there would not be a licensable strain or other commercializable product to transfer to Allonnia. Further, Allonnia has rights to all development intellectual property created as part of each TDP, irrespective of the result of the development. Therefore, each executed TDP consists of one combined performance obligation for the license and research and development services to be performed by the Company.

For each TDP, the transaction price consists of variable consideration for the most likely amount of estimated consideration to be received under the cost-plus arrangement and the $2.5 million allocation of the fixed non-cash consideration. As the services performed by the Company create or enhance an asset that Allonnia controls as the asset is created or enhanced, the Company satisfies the performance obligation and recognizes revenue over time. The Company uses an input method that compares total costs incurred relative to total estimated cost to complete to estimate progress under the contract. Any revisions to the estimated total budgeted costs to complete, and the resulting impact to revenue recognition, are reflected in the period of the change through a cumulative catch-up adjustment. In 2021, the additional non-cash consideration of $12.7 million, which represents previously constrained variable consideration, was allocated to all of the performance obligations consistent with the initial relative selling price allocation and a cumulative catch up was recognized for the TDPs in process.

As of December 31, 2022 and 2021, the Company had a deferred revenue balance of $35.9 million and $38.0 million, respectively, with Allonnia. During the years ended December 31, 2022, 2021 and 2020, the Company recognized revenue of $4.3 million, $5.1 million and $5.0 million, respectively, from services provided to Allonnia.

Motif FoodWorks, Inc.

Summary of Arrangement

In September 2018, the Company entered into (i) an Intellectual Property Contribution Agreement (“Motif IP Agreement”) with Motif that granted Motif a license to certain of the Company’s intellectual property and (ii) a Technical Development Agreement (“Motif TDA”) that establishes the terms under which the Company is providing technical development services.

Under the Motif IP Agreement, the Company licensed intellectual property to Motif for use in strain development to produce ingredients that the parties will subsequently agree to develop under TDPs. The license rights provide Motif with the ability to commercialize the specified ingredients from the corresponding strain, which can only be developed by the Company under the Motif TDA. In return for the license to the intellectual property, Motif granted the Company 9,000,900 shares of common stock. Concurrent with the Motif IP Agreement, Motif also sold 8,100,720 shares of Series A preferred stock to certain of the Company’s investors, as well as third-party investors, for aggregate proceeds of approximately $90.0 million.

The Motif TDA governs the procurement of the Company’s expertise and technical development services to collaborate in the research, development, and commercialization of specified ingredients. Under the Motif TDA, the parties jointly agree on TDPs for specific ingredients, in which the Company will perform agreed upon development services in return for consideration on a cost-plus fixed margin basis for all services provided. At inception, the Company estimated that it would execute ten TDPs with Motif.

Accounting Analysis

The investment in Motif common stock is considered an equity method investment as a result of the Company’s ability to exercise significant influence over the financial and operating policies through its common stock ownership. The initial carrying value of the equity method investment in Motif is the fair value of the common stock received in exchange for the Motif IP Agreement of $65.1 million which, as discussed below, is being accounted for as non-cash consideration under ASC 606. As Motif’s Series A preferred stockholders receive a liquidation preference prior to common stock, the Company concluded that this represents a substantive profit-sharing arrangement. Accordingly, the Company is recognizing earnings and losses on the equity method investment using the HLBV method. The Company recorded a loss on equity method investment of $65.1 million from inception through December 31, 2018 which reduced the carrying value to zero. The loss allocated to the Company primarily relates to Motif’s accounting for the non-cash consideration related to the Motif IP Agreement as in-process research and development, which resulted in the full value of Company’s intellectual property

contribution being expensed in the period ended December 31, 2018, at which time the carrying value of the equity method investment in Motif had been reduced to zero. There is no commitment for the Company to provide further financial support to Motif and therefore the carrying value of the equity method investment will not be reduced below zero. As a result, no loss was recognized during the years ended December 31, 2022, 2021 and 2020 on the equity method investment.

The overall arrangement with Motif is a vendor-customer relationship and is within the scope of ASC 606 as the provision of development services and corresponding license rights are considered a part of the Company’s ordinary activities. The licenses contemplated under the Motif IP Agreement are contingent upon a TDP being agreed to by the parties under the Motif TDA and only relate to strains that are developed under a TDP. While the TDPs require approval by the parties, the parties initially estimated that ten TDPs would be negotiated under the arrangement.

The Company’s performance obligations under the Motif IP Agreement consist of ten material rights, related to the initial set of ingredients that the parties desired to develop in the first two years. The material rights represent an advance payment for the license rights which will be granted upon the execution of each TDP. As there is no additional payment for these license rights upon execution of a TDP, the Company has determined that there is a material right associated with each of the contemplated TDPs. The common stock received under the Motif IP Agreement is considered non-cash consideration and has been recognized at fair value. The Company determined the fair value of the common stock was $65.1 million at inception of the agreement with the assistance of a third-party valuation specialist, which was initially recorded as non-current deferred revenue. The option pricing model used a back-solve methodology to determine the total equity value based on the pricing of the Series A financing, which was contemporaneous with the Motif IP Agreement. The Company has allocated $6.5 million to each of the ten material rights. The Company allocated the transaction price based on the estimated standalone selling price of the material rights which is, in turn, based on the intrinsic value of the right and the probability of exercise.

Upon the execution of each TDP, the Company is obligated to provide development services under the TDP and a license to applicable patents and other intellectual property to the ingredient developed under the plan. The license and research and development services under a TDP are highly interdependent and interrelated with one another. Without the Company’s knowledge, expertise and platform, there would not be a licensable strain or other commercializable product to transfer to Motif. Further, Motif has rights to all development intellectual property created as part of each TDP, irrespective of the result of the development. Therefore, each executed TDP consists of one combined performance obligation for the license and research and development services to be performed by the Company.

For each TDP, the transaction price consists of variable consideration for the most likely amount of estimated consideration to be received under the cost-plus arrangement and the $6.5 million which was allocated to the associated material right under the Motif IP Agreement. As the services performed by the Company create or enhance an asset (i.e., the specified ingredient) that Motif controls as the asset is created or enhanced, the Company satisfies the performance obligation and recognizes revenue over time. The Company uses an input method that compares total costs incurred relative to total estimated cost to complete to estimate progress under the contract. Any revisions to the estimated total budgeted costs to complete, and the resulting impact to revenue recognition, are reflected in the period of the change through a cumulative catch-up adjustment.

As of December 31, 2022 and 2021, the Company had a deferred revenue balance of $52.0 million and $52.2 million, respectively, with Motif. During the years ended December 31, 2022, 2021 and 2020, the Company recognized revenue of $1.9 million, $20.2 million and $20.8 million, respectively, from services provided to Motif.

Genomatica, Inc.

2016 Genomatica Agreement

In 2016, the Company purchased Series A preferred stock of Genomatica, Inc. (“Genomatica”), a biotechnology company specializing in the development and manufacturing of intermediate and specialty chemicals from both sugar and alternative feedstocks. The Company also entered into a Collaboration Agreement with Genomatica (“Genomatica Collaboration”) in connection with the financing. The Genomatica Collaboration was entered into to share expertise on biotechnology solutions. Specifically, Genomatica provided the Company with scale-up and process optimization functions, and the Company has provided Genomatica with certain technology development functions generally centered on high throughput strain engineering capabilities. The Genomatica Collaboration’s focus was on obtaining new customers for either party that could benefit from the combined expertise of both parties, and the agreement provides for profit-sharing allocations between Genomatica and the Company depending on the category of the potential product. Each party is responsible for their own costs incurred under an agreed upon TDP.

2018 Genomatica Agreement

In September 2018, the Company entered into a stock purchase agreement with Genomatica under which it received $40.0 million of Series B preferred stock from Genomatica. In lieu of cash consideration, the Company entered into a Foundry Terms of Service Agreement (“Genomatica FSA”) with Genomatica in which the Company would provide up to $40.0 million in services at no charge to Genomatica (“Initial Prepayment”). The Genomatica FSA terminated the Genomatica Collaboration and changed the pricing terms for work performed under TDPs to a cost-plus fixed margin agreement. Genomatica can apply a portion of the $40.0 million in prepaid services to outstanding invoices under the Genomatica FSA, subject to certain limitations that require cash payment for services over certain monthly thresholds. Further, while the Genomatica FSA replaced the Genomatica Collaboration, any fees that would have been paid to or by the Company under contracts previously governed by the Genomatica Collaboration continued to be shared between the parties. These amounts are either (i) added to, if payable to the Company, or (ii) reduced from, if payable to Genomatica, the balance of the prepaid services over the term of the arrangement, with certain restrictions. As of December 31, 2021 and 2020, the Company has received $8.3 million and $6.9 million, respectively, under the Genomatica FSA. All contracts previously governed by the Genomatica Collaboration have ended as of December 31, 2021, therefore, no additional payments are expected.

Accounting Analysis

The Company concluded the preferred stock investment was not in-substance common stock and therefore did not qualify for accounting as an equity method investment. Rather, the Company concluded the preferred stock investment should be accounted for as an equity security as it represents an ownership interest in Genomatica that is not mandatorily redeemable nor does the Company have the unilateral right to redeem the preferred stock. Genomatica’s preferred stock is not exchange-traded and does not have a readily determinable fair value. Therefore, the Company accounts for the Genomatica preferred stock under the measurement alternative for equity investments that do not have a readily determinable fair value, which in this case is at historical cost. As of December 31, 2022 and 2021, the cost of the investment in Genomatica preferred stock was $44.9 million and $55.0 million, respectively, and is included in investments on the consolidated balance sheet.

Under the Genomatica Collaboration, the Company was entitled to receive a portion of fees earned from third party customers of Genomatica that were within the scope of the agreement. The Company accounted for the collaboration under ASC 808, however the Company applied ASC 606 by analogy for measurement and recognition purposes. Under the Genomatica Collaboration, the Company’s promises consisted of (i) licenses to the Company’s intellectual property, related to the specified development work, and (ii) research and development services. The Company determined that there was a single, combined performance obligation consisting of research services and licenses to certain intellectual property. The Company recognized the revenue for the combined performance obligation using an over-time input method, as the Company’s performance under the contract created or enhanced the target product or strain as such product or strain was developed. The Company measured progress based on the cost incurred relative to total forecasted cost.

The Genomatica FSA represents a modification to the Genomatica Collaboration that resulted in a change in transaction price from milestones to a cost-plus fixed margin structure. The Genomatica FSA did not result in the addition of any distinct promised goods or services, and the Company’s remaining obligation post-modification was to finish the partially satisfied development work that had commenced under the Genomatica Collaboration. This performance obligation was satisfied during the year ended December 31, 2019 and the parties have entered into subsequent TDPs under the Genomatica FSA.

As of December 31, 2022 and 2021, the Company had a deferred revenue balance of $6.3 million and $17.1 million, respectively, with Genomatica. During the years ended December 31, 2022, 2021 and 2020, the Company recognized revenue of $10.9 million, $12.9 million and $9.4 million, respectively, from services provided to Genomatica.

Joyn Bio, LLC

Summary of Arrangement

In September 2017, the Company and certain other investors formed Cooksonia for the purposes of holding the Company’s investment in Joyn. Concurrently, Cooksonia entered into a commitment agreement with Bayer CropScience LP (“Bayer”) to form Joyn. The purpose of Joyn was to research, develop, discover, and commercialize engineered microbes for use in agriculture. The initial program used advanced techniques in biology to study and engineer naturally occurring soil microbes and their nitrogen-fixing genes to enable crops to produce their own fixed nitrogen and reduce the nitrogen fertilizer required.

The Company contributed $5.0 million in cash and certain intellectual property to Cooksonia in exchange for a 70% equity interest in Cooksonia (“Class A Units”). Cooksonia received $20.0 million in cash from another investor, who is a related party of the Company, for a 20% equity interest in Cooksonia (“Class B Units”). Cooksonia also received certain intellectual property from Genomatica and issued Genomatica a 10% equity interest in Cooksonia (“Cooksonia Class C Units”) and paid Genomatica $5.0 million in cash. Subsequently, Cooksonia contributed $20.0 million and all intellectual property received from the Company and Genomatica in exchange for a 50% equity interest in Joyn. Bayer contributed $20.0 million in cash funding plus specified intellectual property. In addition, Bayer committed to contribute up to an additional $60.0 million to be paid subject to certain funding procedures. In return, Bayer obtained a 50% equity interest in Joyn. The agreements may be terminated by mutual agreement, following a change in control, and for breach.

Joyn was governed by a Board of Managers (“Joyn Board”) comprised of equal representation of the Company and Bayer. The Joyn Board had all the rights, powers, obligations, and authority to manage the business and affairs of Joyn.

The Company also entered into a Foundry Services Agreement (“Joyn FSA”) with Joyn under which the Company will provide Joyn with technical services and preferred access to the Company’s facilities. Joyn paid the Company a non-refundable $20.0 million prepayment for services to be provided under the Joyn FSA (“Joyn Prepaid Services”). The Joyn Prepaid Services can be utilized for technical services performed by the Company, its subcontractors, and third parties involved in the performance of the overall technical services. Amounts due to the Company are applied to the balance of Joyn Prepaid Services as earned. During the year ended December 31, 2019, Joyn made an additional $15.0 million prepayment for services (“Joyn Additional Prepaid Services”). Under certain Joyn termination scenarios, any amount of unused Joyn Additional Prepaid Services shall be repaid by the Company to Joyn.

Accounting Analysis

From inception, the Company’s investment in Cooksonia has represented a controlling financial interest, resulting in consolidation of Cooksonia within the Company’s consolidated financial statements (see Note 6). The initial cash and in-kind contributions the Company made to Cooksonia have been recorded at carrying value as the transaction was with entities under common control. All assets of Cooksonia after the initial investments, net of the amounts paid to Genomatica, were contributed to Joyn for a 50% equity interest in Joyn. The initial carrying value of the Company’s equity interest in Cooksonia was $13.1 million, comprised of the initial $5.0 million cash investment and an $8.1 million adjustment for Cooksonia’s claim on net assets in accordance with ASC 810, Consolidation, recognized to reflect a certain investor’s liquidation preference in a termination event that represents a substantive profit-sharing agreement. The initial carrying value of the non-controlling interest was comprised of cash and intellectual property contributions from the other investors of $29.7 million, less the $8.1 million adjustment for the non-controlling interest holders’ claim on the net assets of Cooksonia.

Cooksonia accounted for its 50% equity interest in Joyn as an equity method investment based on the size of its equity interest and its influence on the board of directors. The equity method investment in Joyn was recorded at an initial carrying value of $97.9 million, which was the fair value of Cooksonia’s interest in Joyn. The fair value was determined by management with the assistance of a third-party valuation specialist. The option pricing model used a back-solve methodology to determine the total equity value based on the pricing of the Class B Units which were exchanged for cash. The license of intellectual property to Joyn has been accounted for under ASC 606 as described below. Upon liquidation, the net assets of Joyn are not distributed in accordance with each party’s respective ownership interest. Depending on the circumstances or type of liquidation event, Bayer or Cooksonia may receive certain preference payments or priority in the assets that are distributed. These preferences represent a substantive profit-sharing arrangement and, accordingly, Cooksonia recognized earnings and losses on its equity method investment using the HLBV method. Refer to Note 6 for additional details on Cooksonia's investment in Joyn.

The Company accounted separately under ASC 606 for Cooksonia’s contribution of its intellectual property and the services performed by the Company under technical project plans governed by the Joyn FSA. The Company accounted for the intellectual property sale and the technical services separately as the two agreements were not negotiated with a single commercial objective, the consideration under each agreement was not interdependent, and the intellectual property contribution from Cooksonia was separate and distinct from the research and development services performed under the Joyn FSA.

The Company considers the granting of licenses to the Company’s intellectual property as part of its ordinary business activities, and therefore Cooksonia’s contribution of intellectual property to Joyn represented a contract with a customer. The intellectual property contained multiple licenses for which control transferred at inception and all revenue associated with the licenses was recognized during the year ended December 31, 2017.

The Joyn FSA functioned as a master services agreement that provided a framework for the research and development services relationship between the Company and Joyn. The Joyn FSA did not create a contract under ASC 606 as it did not identify goods or services to be performed nor did it define consideration under the contract. Upon the execution of a technical project plan under the Joyn FSA, the arrangement qualified as a contract under ASC 606.

The Company accounted for each technical project separately. Each technical project plan provided for distinct services in the context of the contract, was separately negotiated with Joyn, focused on different specified strains with separate scopes of work, and had its own budget. The sole performance obligation under each individual technical project plan consisted of the research and development services as the requisite licenses were transferred prior to the execution of the technical project plans. The transaction price for each technical project plan was determined at plan inception based on the consideration that the Company negotiated in exchange for the services to be provided. The Company’s performance under each technical project plan created or enhanced assets under Joyn’s control. Joyn received the benefits of the output of the research and development services which allowed Joyn to make strategic business decisions on the direction of each product candidate. Therefore, the Company satisfied the respective performance obligations and recognized revenue over time.

On October 17, 2022, Bayer and Ginkgo entered into the JV Termination Agreement, which initiated the dissolution of Joyn (see Note 3). Upon dissolution, the Company's deferred revenue balance with Joyn was applied to Bayer’s Technical Development Agreement with the Company.

As of December 31, 2022 and 2021, the Company had a deferred revenue balance of $0 and $4.6 million, respectively, with Joyn, representing the remaining balance of the prepaid services. During the years ended December 31, 2022, 2021 and 2020, the Company recognized revenue of $2.9 million, $5.3 million and $7.3 million, respectively, from services provided to Joyn for which the balance was applied against deferred revenue.

Amyris, Inc.

During 2017, the Company terminated its collaborative relationship with Amyris, Inc. (“Amyris”) as provided in the Amyris Collaboration Agreement and executed a settlement arrangement (“Partnership Agreement”) under which the Company is entitled to receive (i) value share payments owed to the Company under the Amyris Collaboration Agreement, (ii) payments of $0.8 million each quarter commencing on December 31, 2018 through the quarter ended September 30, 2022, and (iii) payments due under an interest bearing $12.0 million promissory note.

The parties amended the agreements during the year ended December 31, 2020 to defer certain payments and provide Amyris waivers for noncompliance with certain covenants. As of December 31, 2020, the Company was owed (i) the $12.0 million principal balance on the promissory note which matures on October 19, 2022 and (ii) payments under the Partnership Agreement, as amended, which includes quarterly payments of $0.2 million to $0.3 million through September 2022 and an end of term payment of $9.8 million on October 19, 2022.

The Company concluded that all amounts due are a settlement for accounting purposes as the payments are being made without any obligation from the Company to Amyris. The balance due on the promissory note and right to payments due under the Partnership Agreement are not recognized in the Company’s financial statements until the gain is realized. The Company recognizes any payments made under the Partnership Agreement and promissory note, including interest, when the cash is received as a component of other (expense) income. On November 15, 2021, the Company received a $22.8 million payment from Amyris in full settlement of all amounts due under the Partnership Agreement including (i) the $12.0 million principal balance on the promissory note and all interest due, (ii) all quarterly payments due under the Partnership Agreement through September 2022 and (iii) an end of term payment of $9.8 million. Payments received from Amyris are recorded as gain on settlement of partnership agreement in the consolidated statements of operations and comprehensive loss.

Synlogic, Inc.

Summary of Arrangement

In June 2019, the Company entered into several agreements with Synlogic, a publicly traded clinical-stage biopharmaceutical company focused on advancing drug discovery and development for synthetic biology-derived medicines. The Company entered into a Subscription Agreement with Synlogic whereby it purchased 6,340,771 shares of common stock at $9.00 per share for a total purchase price of $57.1 million, which represented a 19.9% equity interest in Synlogic. The Company also entered into a Warrant Agreement whereby it received the right to purchase 2,548,117 shares of common stock of Synlogic at an exercise price of $9.00 per share. The Company made a non-refundable prepayment related to the exercise price of the

warrant equal to $8.99 per share for a total payment of $22.9 million. The warrant is only exercisable to the extent the Company’s interest in Synlogic does not exceed 19.99%. The Company also entered into a Foundry Services Agreement (“Synlogic FSA”) whereby Synlogic provided $30.0 million in cash as a non-refundable prepayment for Foundry services. The prepaid Foundry services can be utilized for development of collaboration strains. Services performed under the services agreement will be applied to the prepaid amount based on the contractual rates included in the contract, based on costs incurred plus a fixed margin. Work will be performed under the Synlogic FSA pursuant to TDPs. Each TDP will pursue the development of a specific collaboration strain and/or production protocol. The Synlogic FSA will terminate upon the earlier of the exhaustion of the prepayment amount in full or the fifth anniversary of the effective date of the agreement and may be extended in certain circumstances.

Accounting Analysis

The overall arrangement with Synlogic includes the Subscription Agreement whereby the Company purchased shares of Synlogic common stock, the Warrant Agreement whereby the Company prepaid a significant portion of the exercise price of the warrant to purchase Synlogic common stock, which is non-refundable, and the Synlogic FSA whereby the Company will perform services for Synlogic. The Company concluded that these agreements should be considered one arrangement for accounting purposes as they were entered into at the same time and negotiated as a package with a single commercial objective.

At inception, the common stock investment in Synlogic was considered an equity method investment as the Company did not have a controlling financial interest in Synlogic but did have the ability to influence the financial and operating policies through its ownership of common stock. The Company elected to apply the fair value option to account for the equity method investment as the fair value of Synlogic’s common stock is objectively determinable based on quoted market prices in an active market for the identical securities. At inception, the fair value of the equity method investment in Synlogic was recorded at $35.8 million as a component of equity method investments on the consolidated balance sheet. Beginning with the third quarter of 2021, due to a decrease in the level of ownership, the investment no longer qualifies for the equity method and was reclassified from equity method investments to investments on the consolidated balance sheet, and from loss on equity method investments to (loss) gain on investments on the consolidated statements of operations and comprehensive loss for all periods presented. However, the Company continues to apply the fair value option to account for its investments in Synlogic. The Company has also elected to apply the fair value option to account for the warrant to purchase Synlogic common stock, which at inception was recorded at $14.4 million as a component of investments on the consolidated balance sheet. See Note 4 for additional information related to the fair value measurements of Synlogic common stock and the Synlogic warrants and Note 5 for additional information related to the net gains and losses recognized during the periods presented related to these securities.

The Company concluded that the TDPs represent contracts with a customer and will be accounted for under ASC 606. At inception, Synlogic prepaid $30.0 million for services under the Synlogic FSA. The prepaid services were reduced by $29.8 million, which represents the excess of the aggregate $80.0 million the Company paid to purchase Synlogic’s common stock and warrant over the respective fair values of those instruments. This resulted in a deferred revenue balance of $0.2 million at inception, which is being recognized over the period in which the Company will provide services to Synlogic. The Company recognized nominal amounts of revenue during each of the years ended December 31, 2022, 2021 and 2020 from services provided to Synlogic. As of December 31, 2022 and 2021, the Company had a deferred revenue balance of less than $0.1 million with Synlogic.

v3.22.4
Employee Benefit Plan
12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Employee Benefit Plan

17. Employee Benefit Plan

The Company has a 401(k) retirement plan covering substantially all employees. Under the retirement plan, employees make voluntary contributions and the Company makes a 5% non-elective contribution for all employees based on compensation, subject to Internal Revenue Service contribution limits. For the years ended December 31, 2022, 2021 and 2020, the Company contributed $6.1 million, $3.7 million and $2.2 million, respectively, to the retirement plan.

v3.22.4
Income Taxes
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes

18. Income Taxes

For the years ended December 31, 2022, 2021 and 2020, the loss before income taxes consisted of the following (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Domestic

 

$

(2,118,095

)

 

$

(1,837,497

)

 

$

(124,834

)

Foreign

 

 

(3,304

)

 

 

(625

)

 

 

 

Total

 

$

(2,121,399

)

 

$

(1,838,122

)

 

$

(124,834

)

 

For the years ended December 31, 2022, 2021 and 2020, the Company incurred the following income tax (benefit) expense (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Current:

 

 

 

 

 

 

 

 

 

State

 

$

271

 

 

$

1

 

 

$

26

 

Foreign

 

 

159

 

 

 

 

 

 

 

Total current

 

 

430

 

 

 

1

 

 

 

26

 

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

 

(10,500

)

 

 

(413

)

 

 

581

 

State

 

 

(3,943

)

 

 

(912

)

 

 

1,282

 

Foreign

 

 

(1,014

)

 

 

(156

)

 

 

 

Total deferred

 

 

(15,457

)

 

 

(1,481

)

 

 

1,863

 

Income tax (benefit) expense

 

$

(15,027

)

 

$

(1,480

)

 

$

1,889

 

 

A reconciliation of income tax (benefit) expense computed at the statutory corporate income tax rate to the effective income tax rate for the years ended December 31, 2022, 2021 and 2020 is as follows:

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Federal income tax at statutory rate

 

 

21.0

%

 

 

21.0

%

 

 

21.0

%

State income tax

 

 

 

 

 

4.5

%

 

 

4.5

%

Change in valuation allowance

 

 

0.8

%

 

 

(23.9

)%

 

 

(31.3

)%

Stock-based compensation

 

 

(16.7

)%

 

 

(0.2

)%

 

 

 

Executive compensation

 

 

(5.3

)%

 

 

(2.0

)%

 

 

 

Tax credits

 

 

0.6

%

 

 

0.9

%

 

 

4.8

%

Other

 

 

0.3

%

 

 

(0.2

)%

 

 

(0.5

)%

Effective tax rate

 

 

0.7

%

 

 

0.1

%

 

 

(1.5

)%

 

 

The Company’s deferred tax assets and liabilities consist of the following (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

Deferred tax assets:

 

 

 

 

 

 

Net operating loss carryforwards

 

$

434,020

 

 

$

174,127

 

Tax credit carryforwards

 

 

74,336

 

 

 

37,455

 

Capitalized research and development costs

 

 

162,601

 

 

 

 

Accrued expenses

 

 

1,330

 

 

 

2,690

 

Deferred revenue

 

 

46,798

 

 

 

45,928

 

Stock-based compensation

 

 

124,126

 

 

 

318,049

 

Amortizable intangibles

 

 

6,010

 

 

 

3,834

 

Lease liabilities

 

 

113,665

 

 

 

 

Tenant allowance

 

 

 

 

 

2,927

 

Other

 

 

863

 

 

 

 

Deferred tax assets before valuation allowance

 

 

963,749

 

 

 

585,010

 

Valuation allowance

 

 

(833,086

)

 

 

(583,107

)

Deferred tax assets, net of valuation allowance

 

 

130,663

 

 

 

1,903

 

Deferred tax liabilities:

 

 

 

 

 

 

Amortizable intangibles

 

 

(23,583

)

 

 

(4,722

)

Property, plant, and equipment

 

 

(13,405

)

 

 

(830

)

Lease right-of-use assets

 

 

(103,357

)

 

 

 

Basis differences

 

 

 

 

 

(1,522

)

Deferred tax liabilities

 

 

(140,345

)

 

 

(7,074

)

Net deferred taxes

 

$

(9,682

)

 

$

(5,171

)

 

Activity in the deferred tax assets valuation allowance is summarized as follows (in thousands):

 

 

 

Beginning of
Period

 

 

Additions

 

 

End of
Period

 

Deferred tax assets valuation allowance:

 

 

 

 

 

 

 

 

 

Year ended December 31, 2022

 

$

583,107

 

 

$

249,979

 

 

$

833,086

 

Year ended December 31, 2021

 

$

143,827

 

 

$

439,280

 

 

$

583,107

 

 

The Company has evaluated the positive and negative evidence bearing upon its ability to realize the deferred tax assets. The Company considered its history of cumulative net losses incurred since inception and has concluded that it is more likely than not that it will not realize the benefits of the deferred tax assets. Accordingly, a valuation allowance has been established against the deferred tax assets as of December 31, 2022 and 2021 that are not expected to be realized. The Company reevaluates the positive and negative evidence at each reporting period. The valuation allowance increased on a net basis by approximately $250.0 million during the year ended December 31, 2022 primarily due to an increase in the deferred tax asset related to capitalized research and development costs, as required by the Tax Cuts and Jobs Act of 2017, and the increase in the net operating losses and tax credits carryforwards.

As of December 31, 2022, the Company had federal net operating loss carryforwards of approximately $1,838.0 million, of which $139.2 million begin to expire in 2029 and $1,698.8 million can be carried forward indefinitely. As of December 31, 2022, the Company had state net operating loss carryforwards of approximately $734.1 million, of which $661.9 million begin to expire in 2030 and $72.2 million can be carried forward indefinitely. As of December 31, 2022, the Company had foreign net operating losses of approximately $1.4 million, of which $0.5 million begin to expire in 2030 and $0.9 million can be carried forward indefinitely.

As of December 31, 2022, the Company had federal research and development tax credit carryforwards of approximately $30.3 million which begin to expire in 2029. As of December 31, 2022, the Company also had state research and development and investment tax credit carryforwards of approximately $55.7 million which begin to expire in 2030.

Under Sections 382 and 383 of the U.S. Internal Revenue Code, if a corporation undergoes an ownership change, the corporation’s ability to use its pre-change net operating loss carryforwards and other pre-change tax attributes, such as research tax credits, to offset its post-change income and taxes may be limited. In general, an ownership change generally occurs if there is a cumulative change in its ownership by 5% stockholders that exceeds 50 percentage points over a rolling three-year period. Similar rules may apply under U.S. state tax laws. The Company may have experienced an ownership change in the past and may experience ownership changes in the future as a result of future transactions in its share capital, some of which may be outside of the Company’s control. As a result, if the Company earns net taxable income, the Company's ability to use its pre-change net operating loss carryforwards, or other pre-change tax attributes, to offset U.S. federal and state taxable income and taxes may be subject to significant limitations.

We assess the impact of various tax reform proposals and modifications to existing tax treaties in all jurisdictions where we have operations to determine the potential effect on our business and any assumptions we have made about our future taxable income. We cannot predict whether any specific proposals will be enacted, the terms of any such proposals or what effect, if any, such proposals would have on our business if they were to be enacted. On August 9, 2022, the U.S. government enacted the Creating Helpful Incentives to Produce Semiconductors (“CHIPS Act”), which includes an advanced manufacturing investment tax credit and tax incentives related to semiconductor manufacturing, among other provisions. On August 16, 2022, the U.S. government enacted the Inflation Reduction Act (“IRA”), which imposes a new corporate alternative minimum tax (“CAMT”), an excise tax on stock buybacks, and significant tax incentives for energy and climate initiatives, among other provisions. The CAMT is effective for tax years beginning after December 31, 2022, while the excise tax applies to repurchases of stock after December 31, 2022. The effective dates of the energy-related incentives vary. The Company evaluated the impacts of the CHIPS Act and the IRA and concluded that they do not have a material impact on the Company’s consolidated financial statements.

The Company files tax returns as prescribed by the tax laws of the jurisdictions in which the Company operates. In the normal course of business, the Company is subject to examination by U.S. federal, state, local, and foreign taxing authorities, where applicable. There are currently no tax examinations in progress. As of December 31, 2022, with few exceptions, the Company is no longer subject to U.S. federal, state, local, or foreign examinations by tax authorities for tax years before 2013. To the extent the Company has tax attribute carryforwards, the tax years in which the attribute was generated may still be adjusted upon examination by the Internal Revenue Service or state taxing authorities to the extent utilized in a future period.

The Company accounts for uncertain tax positions using a more likely than not threshold for recognizing and resolving uncertain tax positions. The evaluation of uncertain tax positions is based on factors that include, but are not limited to, changes in tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, new audit activity and changes in facts or circumstances related to a tax position. The Company evaluates uncertain tax positions on an annual basis and adjusts the level of the liability to reflect any subsequent changes in the relevant facts surrounding the uncertain positions. The Company accounts for interest and penalties related to uncertain tax positions as part of its provision for income taxes. As of December 31, 2022 and 2021, the Company had no recorded liabilities for uncertain tax positions and had no accrued interest or penalties related to uncertain tax positions. The Company does not expect a material change in unrecognized tax benefits in the next twelve months.

v3.22.4
Net Loss per Share
12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Net Loss per Share . Net Loss per Share

As a result of the SRNG Business Combination, the Company has retroactively restated the weighted average shares outstanding prior to September 16, 2021 to give effect to the Exchange Ratio.

 

The Company computes net loss per share of the Class A common stock and Class B common stock using the two-class method required for participating securities. The earnings per share amounts are the same for the different classes of common stock because the holders of each class are legally entitled to equal per share distributions whether through dividends or

liquidation. The calculation of basic and diluted earnings per common share are as follows (in thousands, except per share amounts):

 

 

 

Year ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Numerator:

 

 

 

 

 

 

 

 

 

Net loss attributable to Ginkgo Bioworks Holdings, Inc. stockholders, basic

 

$

(2,104,929

)

 

$

(1,830,047

)

 

$

(126,609

)

Change in fair value of warrant liabilities

 

 

 

 

 

58,615

 

 

 

 

Change in fair value of contingent consideration common shares liability

 

 

3,143

 

 

 

 

 

 

 

Net loss attributable to Ginkgo Bioworks Holdings, Inc. stockholders, diluted

 

$

(2,108,072

)

 

$

(1,888,662

)

 

$

(126,609

)

Denominator

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

 

1,679,061,465

 

 

 

1,359,848,803

 

 

 

1,274,766,915

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

Warrants

 

 

 

 

 

524,540

 

 

 

 

Contingent consideration common shares

 

 

777,384

 

 

 

 

 

 

 

Weighted average common shares outstanding, diluted

 

 

1,679,838,849

 

 

 

1,360,373,343

 

 

 

1,274,766,915

 

Basic net loss per share

 

$

(1.25

)

 

$

(1.35

)

 

$

(0.10

)

Diluted net loss per share

 

$

(1.25

)

 

$

(1.39

)

 

$

(0.10

)

 

The following potential common shares, presented based on amounts outstanding at each period end, were excluded from the calculation of diluted net loss per share attributable to Ginkgo Bioworks Holdings, Inc. common stockholders for the periods presented because including them would have been anti-dilutive:

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Warrants to purchase Class A common stock

 

 

51,824,895

 

 

 

 

 

 

1,020,187

 

Outstanding stock options

 

 

12,710,709

 

 

 

25,228,853

 

 

 

33,354,871

 

Unvested RSUs

 

 

134,436,442

 

 

 

168,321,952

 

 

 

124,932,207

 

Unvested RSAs

 

 

4,091

 

 

 

182,622

 

 

 

419,049

 

Ginkgo and Sponsor earnout shares (1)

 

 

156,780,675

 

 

 

160,995,237

 

 

 

 

 

 

 

355,756,812

 

 

 

354,728,664

 

 

 

159,726,314

 

(1) Represents earnout shares for which the vesting conditions have not been satisfied.

v3.22.4
Related Parties
12 Months Ended
Dec. 31, 2022
Related Party Transactions [Abstract]  
Related Parties

20. Related Parties

Related party transactions included in the consolidated balance sheet, excluding the Company’s investments and equity method investments, are summarized below (in thousands):

 

 

As of December 31,

 

 

 

2022

 

 

 

2021

 

Accounts receivable:

 

 

 

 

 

 

 

Joyn

 

$

 

 

 

 

$

5

 

Motif

 

 

 

 

 

 

 

3,020

 

Allonnia

 

 

140

 

 

 

 

 

849

 

Arcaea

 

 

335

 

 

 

 

724

 

Verb

 

 

361

 

 

 

 

 

Ayana

 

 

403

 

 

 

 

 

BiomEdit

 

 

288

 

 

 

 

 

Other equity investees

 

 

31

 

 

 

 

 

 

 

$

1,558

 

 

 

$

4,598

 

Deferred revenue, current and non-current:

 

 

 

 

 

 

 

Joyn

 

$

 

 

 

 

$

4,608

 

Motif

 

 

52,018

 

 

 

 

 

52,171

 

Genomatica

 

 

6,250

 

 

 

 

 

17,111

 

Allonnia

 

 

35,876

 

 

 

 

 

38,016

 

Arcaea

 

 

38,334

 

 

 

 

 

47,356

 

BiomEdit

 

 

8,144

 

 

 

 

 

Other equity investees

 

 

875

 

 

 

 

1,559

 

 

 

$

141,497

 

 

 

 

$

160,821

 

 

Related party transactions included in the consolidated statements of operations and comprehensive loss, excluding the losses on the Company’s investments and equity method investments, are summarized below (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

 

2021

 

 

 

2020

 

Foundry revenue:

 

 

 

 

 

 

 

 

 

 

 

Joyn

 

$

2,896

 

 

 

 

$

5,254

 

 

 

 

$

7,273

 

Motif

 

 

1,937

 

 

 

 

 

20,224

 

 

 

 

 

20,798

 

Genomatica

 

 

10,861

 

 

 

 

 

12,868

 

 

 

 

 

9,431

 

Allonnia

 

 

4,332

 

 

 

 

 

5,126

 

 

 

 

 

4,960

 

Arcaea

 

 

13,490

 

 

 

 

 

3,676

 

 

 

 

 

 

Verb

 

 

2,359

 

 

 

 

 

 

 

 

 

Ayana

 

 

1,266

 

 

 

 

 

 

 

 

 

BiomEdit

 

 

1,016

 

 

 

 

 

 

 

 

 

Other equity investees

 

 

656

 

 

 

 

13

 

 

 

 

73

 

 

 

$

38,813

 

 

 

 

$

47,161

 

 

 

 

$

42,535

 

 

Beginning in April 2022, the Company purchased a series of convertible promissory notes from its then equity method investee, Joyn, in the aggregate principal amount of $10.0 million for the purpose of financing Joyn's working capital needs. Each convertible promissory note was unsecured, had a maturity date of March 31, 2023 and an interest rate of 4.5% per annum. The notes were automatically convertible into equity at a 20% discount upon a qualifying equity financing. Additionally, the Company could elect to convert the notes into equity at a 20% discount upon a non-qualifying equity financing, at maturity, or elect to be repaid in cash upon a change in control or initial public offering. The Company evaluated the notes’ conversion and redemption features for embedded derivatives and determined that there is no embedded derivative to record. The Company also determined that the convertible notes are not in-substance common stock and therefore are not considered an additional investment in the equity method investee. During the year ended December 31, 2022, the carrying amount of the notes was reduced by $5.3 million, which represented the excess loss on the equity method investment in Joyn over the carrying value of the investment, which has been reduced to zero during the period. The outstanding balance of the notes receivable was effectively settled as part of the business combination transaction with Bayer and Joyn described in Note 3 and was included as part of the consideration paid for the business combination.

 

Refer to Note 5 and 16 for additional details on the Company’s investments and equity method investments held in its related parties.

v3.22.4
Subsequent Events
12 Months Ended
Dec. 31, 2022
Subsequent Events [Abstract]  
Subsequent Events

21. Subsequent Events

On March 10, 2023, Silicon Valley Bank (“SVB”), based in Santa Clara, California, was closed by the California Department of Financial Protection and Innovation, which appointed the FDIC as receiver. At the time of closing, the Company’s wholly-owned subsidiary Zymergen had a total cash balance of approximately $74 million held in deposit accounts at SVB, of which approximately $10 million is held as collateral for letters of credit under certain lease agreements. The Company does not maintain any other material accounts or lines of credit with SVB. The cash balance with SVB at the time of closing represents approximately 6% of the Company’s cash and cash equivalents as of December 31, 2022. The Company is currently evaluating the potential impact of SVB’s failure on its customers, vendors, investees and other third parties. To the extent that these counterparties are adversely affected, the Company may experience difficulty collecting accounts and notes receivable, loss of revenues, impairments to non-marketable equity securities and SAFEs, and a decrease in the fair value of investments and notes receivable. At this time, an estimate of the financial effect, if any, of SVB’s closure on the Company’s financial position, results of operations and cash flows cannot be made. The Company is continually monitoring developments related to the recovery of its uninsured funds at SVB as well as the potential impacts of SVB’s closure on the Company’s counterparties.

v3.22.4
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

The accompanying consolidated financial statements have been prepared in conformity with the rules and regulations of the Securities and Exchange Commission (“SEC”) and generally accepted accounting principles in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”).

The SRNG Business Combination was accounted for as a reverse recapitalization, in accordance with GAAP (the “Reverse Recapitalization”). Under this method of accounting, SRNG was treated as the “acquired” company for financial reporting purposes. Accordingly, for accounting purposes, the Reverse Recapitalization was treated as the equivalent of Old Ginkgo issuing stock for the net assets of SRNG, accompanied by a recapitalization. The net assets of SRNG are stated at historical cost, with no goodwill or other intangible assets recorded. The determination of Old Ginkgo as the accounting acquirer was primarily based on the fact that Old Ginkgo’s former shareholders currently have the largest voting interest in Ginkgo, all of the management of Ginkgo is comprised of Old Ginkgo’s former executive management, Old Ginkgo's former directors and individuals designated by, or representing, Old Ginkgo shareholders constitute a majority of the initial Ginkgo Board, and the operations of Old Ginkgo comprise all of the ongoing operations of Ginkgo.

 

The consolidated assets, liabilities and results of operations prior to the Reverse Recapitalization are those of Old Ginkgo. The shares and corresponding capital amounts and loss per share prior to the Reverse Recapitalization have been retroactively restated to reflect the Exchange Ratio established in the Merger Agreement.

Principles of Consolidation

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, majority owned subsidiaries and variable interest entities if the Company is the primary beneficiary. All intercompany accounts and transactions have been eliminated.
Reclassifications

Reclassifications

Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.

Variable Interest Entities

Variable Interest Entities

The Company evaluates its variable interests in variable interest entities (“VIE”) and consolidates VIEs when the Company is the primary beneficiary. The Company determines whether it is the primary beneficiary of each VIE based on its assessment of whether the Company possesses both (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the obligation to absorb losses that could be significant to the VIE or the right to receive benefits that could be significant to the VIE. The Company reevaluates the accounting for its VIEs upon the occurrence of events that could change the primary beneficiary conclusion. As of December 31, 2022 and 2021, the maximum risk of loss related to the Company’s VIEs was limited to the carrying value of its investment in such entities.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent liabilities in the consolidated financial statements. Estimates used in the preparation of these consolidated financial statements include, among others, revenue recognition, stock-based compensation, the fair value of assets acquired and liabilities assumed in a business combination, the fair value of non-cash consideration received from customers, the fair value of certain notes receivable, the fair value of certain investments including equity method investments, the fair value of warrant liabilities, the allocation of equity method investment losses under the hypothetical liquidation at book value (“HLBV”) method, the incremental borrowing rate used in determining lease liabilities, allowance for credit losses, accrued expenses and income taxes.

The Company bases its estimates on historical experience and other market-specific or relevant assumptions that it believes to be reasonable under the circumstances. Reported amounts and disclosures reflect the overall economic conditions that management believes are most likely to occur, and the anticipated measures management intends to take. Actual results could differ materially from those estimates. All revisions to accounting estimates are recognized in the period in which the estimates are revised.

Segment Information

Segment Information

Prior to 2022, the Company operated as a single reportable segment. In the first quarter of 2022, the Company reorganized its operations into two operating and reportable segments: Foundry and Biosecurity. The reorganization reflects changes made to the Company’s internal management structure and how the Company’s chief operating decision makers (“CODMs”), comprised of the Chief Executive Officer and the Chief Operating Officer, evaluate operating results and make decisions on how to allocate resources. All prior-period comparative segment information was recast to reflect the current reportable segments in accordance with ASC 280, Segment Reporting. The Company’s CODMs do not evaluate operating segments using asset information.

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of cash and cash equivalents, restricted cash, accounts receivable, and notes receivable. The Company’s cash and cash equivalents and restricted cash are maintained in bank deposit accounts and money market funds that regularly exceed federally insured limits. The Company is exposed to credit risk on its cash, cash equivalents and restricted cash in the event of default by the financial institutions to the extent account balances exceed the amount insured by the Federal Deposit Insurance Corporation (“FDIC”). The Company believes that it is not exposed to significant credit risk as its deposits are generally held in financial institutions that management believes to be of high credit quality; however, the Company is exposed to loss of its uninsured deposits held at Silicon Valley Bank (see Note 21). The Company’s accounts receivable primarily consists of amounts due under its Biosecurity contracts; however, concentrations of credit risk associated with these contracts are limited because the customer base is largely made up of state government agencies. The Company has not experienced any material write-offs related to its accounts receivable since inception. The Company’s maximum credit risk exposure with respect to notes receivable is equivalent to the carrying value of the notes as of the balance sheet date. The Company mitigates this risk by requiring collateral for certain notes and monitoring the counterparty’s financial condition. Refer to Note 21 for further discussion regarding the potential impacts of the closure of Silicon Valley Bank to the Company’s accounts and notes receivable.

For the year ended December 31, 2022, two customers within the Biosecurity segment each account for 11% of the Company’s total revenue. For the year ended December 31, 2021, one customer within the Foundry segment and one customer within the Biosecurity segment accounted for 11% and 17%, respectively, of the Company’s total revenue. For the year ended December 31, 2020, two customers within the Foundry segment accounted for 27% and 12% of the Company’s total revenue. No other customer exceeded 10% of the Company’s total revenue in any period presented.

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company’s cash is comprised of bank deposits, overnight sweep accounts and money market funds. The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. The carrying value of the Company’s cash and cash equivalents approximate fair value due to their short-term maturities.
Restricted Cash

Restricted Cash

Restricted cash primarily includes cash balances collateralizing letters of credit associated with the Company’s facility leases and a customer prepayment requiring segregation and restrictions in its use in accordance with the customer agreement. Restricted cash is included in prepaid expenses and other current assets and other non-current assets on the consolidated balance sheet.

Accounts Receivable, net

Accounts Receivable, net

Accounts receivable consists of credit extended to customers in the normal course of business and is reported at the estimated net realizable value. Accounts receivable includes unbilled amounts that have been recognized in revenue but have not yet been invoiced based on timing differences and the terms of the underlying arrangements. Prior to the Company’s adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), the Company maintained an allowance for doubtful accounts to provide for the estimated amounts of accounts receivable that would not be collected. The allowance was based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and collateral to the extent applicable. Subsequent to the adoption of ASU 2016-13, the Company maintains an allowance for credit losses for its outstanding accounts receivable.

 

Allowance for Credit Losses

The Company maintains an allowance for credit losses to provide for the estimated amounts of receivables that will not be collected over the estimated life of the assets. The allowance is calculated by considering previous loss history, delinquency of receivables balances, current economic conditions and anticipated future economic conditions in the geographies and industries in which the Company’s customers operate. To the extent an individual customer’s credit quality deteriorates, the Company measures an allowance based on the risk characteristics of the individual customer. Once a receivable is deemed to be uncollectible, such balance is charged against the allowance. The allowance is calculated at each reporting period with changes recorded to general and administrative expense in the consolidated statements of operations and comprehensive loss.

Inventory, net

Inventory, net

Inventories are stated at the lower of cost or net realizable value. Inventory in the Biosecurity segment mainly consists of diagnostic testing kits purchased from suppliers, testing program supplies and the costs of assembling sample collection kits. The cost of finished goods inventory for lateral flow assay (“LFA”) and polymerase chain reaction (“PCR”) tests is determined using the first-in first-out method. The cost of raw materials, work in process and finished goods inventory for pooled tests is determined using the average cost method. Inventory in the Biosecurity segment has been reduced by an allowance for excess and obsolete inventory using the specific identification method.

Loans Receivable Receivable

The Company has elected the fair value option under ASC 825, Financial Instruments, to account for its notes receivable. Notes receivable accounted for under the fair value option are marked to market as of each balance sheet date with changes in fair value recorded in other income (expense), net in the consolidated statements of operations and comprehensive loss.

The Company classifies the current portion of the notes receivable balance as a component of prepaid expenses and other current assets on the consolidated balance sheet based on the principal balance of the note that matures within one year from the balance sheet date.
Property and Equipment, net

Property, Plant, and Equipment, net

Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Land is stated at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets or the remaining lease term for leasehold improvements. Estimated lives of property, plant and equipment are as follows:

 

 

Estimated Useful Life

Computer equipment and software

2 to 5 years

Furniture and fixtures

7 years

Lab equipment

1 to 5 years

Buildings and facilities

15 to 30 years

Vehicles

5 years

Leasehold improvements

Shorter of useful life or remaining lease term

 

Expenditures for maintenance and repairs are expensed as incurred. When assets are retired or otherwise disposed of, the related cost and accumulated depreciation or amortization is removed from the balance sheet and any resulting gain or loss is reflected in other income (expense), net in the consolidated statements of operations and comprehensive loss.

Construction in progress relates to assets which have not been placed in service as of period end. As of December 31, 2021, facilities included assets acquired under a build-to-suit lease arrangement, which was derecognized upon the adoption of ASU 2016-02, Leases (Topic 842) (“ASC 842”) on January 1, 2022.

Equity Method Investments

Equity Method Investments

The Company utilizes the equity method to account for its investments in common stock, or in-substance common stock, when it possesses the ability to exercise significant influence, but not control, over the operating and financial policies of the investee. The Company uses judgment when determining the level of influence over the operating and financial policies of the investee considering key factors including, among others, the Company’s ownership interest, representation on the board of directors, participation in policy-making decisions and material contractual arrangements and obligations. Income and losses are allocated based upon relative ownership interest unless there is a substantive profit-sharing agreement in place.

For investments with a substantive profit-sharing agreement, the Company utilizes the HLBV method to allocate income and losses from the equity method investment. Under the HLBV method, the Company utilizes the capital account at the end of the period assuming the book value of the entity was liquidated or sold minus the same calculation at the beginning of the period. The difference is the share of earnings or losses attributable to the equity method investment.

Under the equity method, if there is a commitment for the Company to fund the losses of its equity method investees, the Company would continue to record its share of losses resulting in a negative equity method investment, which would be presented as a liability on the consolidated balance sheet. Commitments may be explicit and may include formal guarantees, legal obligations, or arrangements by contract. Implicit commitments may arise from reputational expectations, intercompany relationships, statements by the Company of its intention to provide support, a history of providing financial support or other facts and circumstances. When the Company has no commitment to fund the losses of its equity method investees, the carrying value of its equity method investments will not be reduced below zero. The Company had no commitment to fund additional losses of its equity method investments during the years ended December 31, 2022, 2021 and 2020, other than dissolution costs for Joyn Bio, LLC (see Note 3 and 6).

The Company evaluates its equity method investments for impairment whenever events or circumstances indicate that the carrying value of the investment may not be recoverable. The Company considers the investee’s financial position, forecasts and economic outlook, and the estimated duration and extent of losses to determine whether a recovery is anticipated. An impairment that is other-than-temporary is recognized in the period identified. The Company has not recognized an impairment loss related to its equity method investments for the years ended December 31, 2022, 2021 and 2020. Refer to

Note 21 for further discussion regarding the potential impacts of the closure of Silicon Valley Bank to the Company’s equity method investments.

The Company may elect the fair value option for its equity method investments on an investment-by-investment basis. For all equity method investments accounted for under the fair value option, the Company carries the equity method investment at fair value and records all subsequent changes in fair value as a component of loss on equity method investments in the consolidated statements of operations and comprehensive loss.

Investments

Investments

Investments include warrants, marketable equity securities in publicly-traded companies, non-marketable equity securities in privately-held companies and Simple Agreement for Future Equity (“SAFEs”), in each case, in which the Company does not possess the ability to exercise significant influence over the investee.

Investments in warrants and marketable equity securities of publicly-traded companies are measured at fair value with subsequent changes in fair value recorded in loss on investments in the consolidated statements of operations and comprehensive loss.

Investments in non-marketable equity securities of privately-held companies and SAFEs, which do not have readily determinable fair values, are carried at cost, less any impairments, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Each period the Company assesses relevant transactions to identify observable price changes, and the Company regularly monitors these investments to evaluate whether there is an indication of impairment. The Company evaluates whether an investment’s fair value is less than its carrying value using an estimate of fair value, if such an estimate is available. For periods in which there is no estimate of fair value, the Company evaluates whether an event or change in circumstances has occurred that may have a significant adverse effect on the value of the investment. The Company has not recognized any upward or downward adjustments resulting from observable price changes in identical or similar investments for the years ended December 31, 2022, 2021 and 2020. Refer to Note 21 for further discussion regarding the potential impacts of the closure of Silicon Valley Bank to the Company’s investments.

Fair Value Measurements

Fair Value Measurements

The Company categorizes its assets and liabilities measured at fair value in accordance with the authoritative accounting guidance that establishes a consistent framework for measuring fair value and requires disclosures for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis.

ASC 820, Fair Value Measurement (“ASC 820”), establishes a fair value hierarchy for instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances.

ASC 820 identifies fair value as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a three-tier fair value hierarchy that distinguishes among the following:

Level 1- Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2- Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and
Level 3- Unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing.

To the extent that the valuation is based on models or inputs that are either less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in

determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The Company valued its money market fund holdings, notes receivable, marketable equity securities, warrant liabilities and contingent consideration liability at fair value on a recurring basis. The carrying amounts of the Company’s other financial instruments, which include accounts receivable, certain prepaid expenses and other current assets, accounts payable and accrued expenses and other current liabilities approximate their fair values due to their short-term nature.

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability is measured by comparing the book values of the assets to the expected future net undiscounted cash flows that the assets are expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the book values of the assets exceed their fair value. The Company has not recognized an impairment loss for the years ended December 31, 2022, 2021 and 2020.
Business Combinations

Business Combinations

The Company accounts for business combinations using the acquisition method of accounting. The Company recognizes the identifiable assets acquired and liabilities assumed at their acquisition-date fair values and recognizes any excess of the total consideration paid over the fair value of the identifiable net assets as goodwill. Any purchase price that is considered contingent consideration is measured at its estimated fair value at the acquisition date and remeasured at each reporting period, with changes in estimated fair value recorded in general and administrative expenses on the consolidated statements of operations and comprehensive loss. Acquisition transaction costs are expensed when incurred. The operating results of an acquisition are included in the Company’s consolidated financial statements as of the acquisition date.

Intangible Assets, net

Intangible Assets, net

Intangible assets, net consist of certain definite-lived assets including patents, processes and know-how related to technology acquired through business combinations. The Company amortizes such intangible assets on a straight-line basis over their estimated useful life.

The Company reviews intangible assets for impairment whenever events or changes in circumstances have occurred which could indicate that the carrying value of the assets are not recoverable. Recoverability is measured by comparing the carrying value of the intangible assets to the future undiscounted cash flows expected to be generated by the asset. In determining the expected future cash flows, the Company uses assumptions believed to be reasonable, but which are unpredictable and inherently uncertain. Actual future cash flows may differ from the estimates used in impairment testing. The Company recognizes an impairment loss when and to the extent that the estimated fair value of an intangible asset is less than its carrying value. The Company has not recognized an impairment loss for the years ended December 31, 2022, 2021 and 2020.

Goodwill

Goodwill

Goodwill represents the excess of acquisition cost over the fair market value of the net assets acquired. Goodwill is tested for impairment on an annual basis during the fourth quarter or whenever events or changes in circumstances indicate the carrying amount may not be recoverable. The Company considers various qualitative factors that could indicate impairment such as macroeconomic conditions, industry and market environment, technological obsolescence, overall financial performance of the Company, cash flow from operating activities and market capitalization. If the qualitative assessment indicates that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, the Company performs a quantitative assessment to compare the fair value of the reporting unit to its carrying value, including goodwill. If the carrying value of the reporting unit exceeds the fair value, an impairment loss is recognized. A combination of the income approach and the market approach may be used to determine fair value of the reporting unit. The Company has not recognized an impairment loss for the years ended December 31, 2022, 2021 and 2020.

Leases

Leases

The Company determines if an arrangement is or contains a lease at contract inception based on the terms and conditions in the contract. A contract contains a lease if there is an identified asset and the Company has the right to control the asset. For

leases with terms greater than 12 months, the Company recognizes a right-of-use asset (“ROU asset”) and a lease liability as of the lease commencement date on the balance sheet. ROU assets represent the Company’s right to use an underlying asset over the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease ROU assets and liabilities are measured based on the present value of fixed lease payments that are unpaid as of the lease commencement date. The Company’s ROU assets balance is reduced by any prepaid rent balances, initial direct costs and lease incentives received or expected to be received. Some of the Company's leases include options to extend or terminate the lease; these options are included in the lease term for calculations of its ROU assets and liabilities when it is reasonably certain that the Company will exercise those options.

The Company’s leases are classified as either operating or finance, as determined at inception, with the classification affecting the pattern of expense recognition in the statement of operations. A lease is classified as a finance lease if risks and rewards are conveyed without the transfer of control. For operating leases, expense is generally recognized on a straight-line basis over the lease term. For finance leases, interest on the lease liability is recognized using the effective interest method, while the ROU asset is amortized on a straight-line basis from the commencement date to the earlier of the end of the useful life of the ROU asset or the end of the lease term. Leases with an initial term of 12 months or less which meet the definition of a short-term lease are not recorded on the balance sheet and the lease expense for these leases is recognized on a straight-line basis over the lease term. In limited instances, the Company acts as a lessor, primarily with certain real estate subleases. Finance leases, short-term leases and subleases are not a significant component of the Company's financial condition or results of operations. The current portion of the Company’s operating lease liabilities is included in accrued expenses and other current liabilities on the balance sheet.

The Company has lease agreements with both lease and non-lease components (such as real estate taxes, insurance and common area maintenance charges) and has elected the practical expedient to combine these lease and non-lease components for its real estate leases and non-lab equipment leases. The Company has not elected this practical expedient for lab equipment leases and the lease and non-lease components are accounted for separately. Non-lease components are typically variable in nature and are recognized as lease expense in the period in which they arise.

As most of the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments and uses the implicit rate when readily determinable. The Company’s incremental borrowing rate is based on management’s estimate of the rate of interest the Company would have to pay to borrow on a fully collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

Deferred Rent

Deferred Rent

Prior to the adoption of ASC 842, deferred rent represented the difference between cash paid and rent expense recognized on a straight-line basis for the facilities that the Company occupied under operating leases. The Company classified the current portion of deferred rent as a component of accrued expenses and other current liabilities on the consolidated balance sheet.
Revenue Recognition

Revenue Recognition

The Company accounts for revenue in accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”). Under ASC 606, the Company recognizes revenue when the customer obtains control of the promised goods or services at an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer, (ii) identify the promises and distinct performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligations.

Foundry Revenue

The Company generates license and service revenue through the execution of license and collaboration agreements whereby customers obtain license rights to the Company’s proprietary technology and intellectual property for use in the research, development and commercialization of engineered organisms, and derived products. Under these agreements, the Company typically provides research and development services, which includes the provision of a license to the Company’s intellectual property. Additionally, the customer obtains license rights to the output of the Company’s services in order to commercialize the resulting output of such services. Generally, the terms of these agreements provide that the Company receives some combination of: (1) Foundry usage fees in the form of (i) upfront payments upon consummation of the agreement or other fixed payments, (ii) reimbursement for costs incurred for research and development services and (iii) milestone payments

upon the achievement of specified technical criteria, plus (2) downstream value share payments in the form of (i) milestone payments upon the achievement of specified commercial criteria, (ii) royalties on sales of products from or comprising engineered organisms arising from the collaboration or licensing agreement and (iii) royalties related to cost of goods sold reductions realized by customers.

The Company’s collaboration and licensing agreements often contain multiple promises, including (i) licenses and assignments of intellectual property and materials and (ii) research and development services, and the Company determines whether each of the promises is a distinct performance obligation based on the nature of each agreement. As the Company is generally performing research and development services that are highly integrated and interrelated to the licenses and assignments of intellectual property and materials, the promises are generally inseparable. As such, the Company typically combines the research and development services, licenses, and assignments into a single performance obligation. However, for certain agreements, the Company only grants licenses or effects such transfers and assignments upon the successful completion of the research and development services or delivery of a developed product. For these agreements, the Company typically considers (i) the research and development services and (ii) the licenses, transfers, and assignments as distinct performance obligations, as each is transferred separately and has a separately identifiable benefit.

Options to acquire additional goods and services are evaluated to determine if such options provide a material right to the counterparty that it would not have received without entering into the contract. If so, the option is accounted for as a separate performance obligation. If not, the option is considered a marketing offer which is accounted for as a separate contract upon the counterparty’s election.

At contract inception, the Company determines the transaction price, including fixed consideration and any estimated amounts of variable consideration. Any upfront cash payment received upon consummation of the agreement is fixed and generally non-refundable. Variable consideration is subject to a constraint, and amounts are included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Variable consideration may include reimbursement for costs incurred for the Company’s research and development efforts, milestone payments upon the achievement of certain technical and commercial criteria, and royalties on sales of products from or comprising engineered organisms arising from the agreement. With respect to the research and development reimbursements and milestone payments, the Company uses the most likely amount method to estimate variable consideration. With respect to agreements that include royalties on sales or other contingent payments based on sales, the Company applies the royalty recognition constraint which requires a constraint until the royalty or value-sharing transaction occurs.

Certain agreements contain payment in the form of shares of equity securities or other financial instruments that are convertible into equity upon a triggering event. Any non-cash consideration is measured at the estimated fair value of the non-cash consideration at contract inception. For equity securities and financial instruments received that are not actively traded, the Company generally engages a third-party valuation specialist to determine the estimated fair value of the upfront non-cash consideration. The fair value is generally determined based on a recent round of financing or by using a scenario-based valuation model. Significant unobservable inputs are used in the fair value measurements including expectations regarding future financings of the customer, scenario dates and probabilities, expected volatility, discount rates and recovery rates. Changes in these assumptions can materially affect the value of the non-cash consideration at contract inception and, accordingly, the total amount of revenue recognized for the contract.

For agreements with promises that are combined into a single performance obligation, the entire transaction price is allocated to the single performance obligation. For agreements with multiple performance obligations, the transaction price is allocated to the performance obligations using the relative standalone selling price methodology. For agreements featuring variable consideration, the Company allocates variable consideration to one or more, but not all, performance obligations if certain conditions are met. Specifically, the Company assesses whether the variable consideration relates solely to its efforts to satisfy the performance obligation and whether allocating such variable consideration entirely to the performance obligation is consistent with the overall allocation objective. If these conditions are not met, the Company allocates the variable consideration based on the relative standalone selling price methodology. The key assumptions utilized in determining the standalone selling price for each performance obligation include development timelines, estimated research and development costs, commercial markets, likelihood of exercise (in the case of options considered to be material rights), and probabilities of success.

For agreements where the licenses or assignments are considered separate performance obligations or represent the only performance obligation, the Company recognizes revenue at the point in time that the Company effectively grants the license

as the licenses or assignments represent functional intellectual property. For agreements where the licenses and the research and development services represent a combined performance obligation, the Company recognizes revenue over the period of performance using a measure of progress based on costs incurred to date as compared to total estimated costs.

The Company evaluates its measure of progress to recognize revenue at each reporting period and, as necessary, adjusts the measure of progress and related revenue recognition. The Company’s measure of progress and revenue recognition involves significant judgment and assumptions, including, but not limited to, estimated costs and timelines to complete its performance obligations. The Company evaluates contract modifications and amendments to determine whether any changes should be accounted for prospectively or on a cumulative catch-up basis. The Company utilizes the right to invoice practical expedient when it has a right to consideration in an amount that corresponds directly with the value of the Company’s performance to date.

Royalties are recognized as revenue when sales have occurred as the Company applies the sales or usage-based royalties recognition constraint. The Company has determined the application of this exception is appropriate because the license granted in the agreement is the predominant item to which the royalties relate.

As the Company receives upfront payments for technical services under certain of its arrangements, the Company evaluates whether any significant financing components exist given the term over which the fees will be earned may exceed one year. Based on the nature of the Company’s agreements, there are no significant financing components as the purpose of the upfront payment is not to provide financing, but rather to secure technical services, exclusivity rights, and Foundry capacity, or the timing of transfer of those goods or services is at the discretion of the customer.

Deferred revenue represents consideration received by the Company in excess of revenue recognized and primarily results from transactions where the Company receives upfront payments and non-cash equity consideration. In instances where the Company has received consideration in advance for an undefined number of technical development plans (“TDPs”) under its customer agreements, the Company records the advance payments as deferred revenue, net of current portion on the consolidated balance sheet. Upon the execution of a specific TDP, the Company reclassifies the estimated consideration to be earned under that TDP within the next twelve months as current deferred revenue. The Company also classifies unexercised material rights related to future TDPs as deferred revenue, net of current portion on the consolidated balance sheet. When a TDP is executed, and the material right is exercised, the amount allocated to the material right, which will be earned within the next twelve months, is reclassified to current deferred revenue. All other deferred revenue is classified as current or non-current based on the timing of when the Company expects to earn the underlying revenue based upon the projected progress of activities under the TDP.

Collaboration Arrangements

For arrangements that do not represent contracts with a customer, the Company analyzes its collaboration transactions to assess whether they are within the scope of ASC 808, Collaborative Arrangements (“ASC 808”), to determine whether such arrangements involve joint operating activities performed by parties that are both active participants in the activities and exposed to significant risks and rewards that are dependent on the commercial success of such activities. To the extent the arrangement is within the scope of ASC 808, the Company assesses whether aspects of the arrangement between the Company and its collaboration partner are within the scope of other accounting literature. If the Company concludes that some or all aspects of the arrangement represent a transaction with a customer, the Company accounts for those aspects of the arrangement within the scope of ASC 606.

Biosecurity Revenue

In 2020, the Company launched its commercial offering of COVID-19 testing products and services for businesses, academic institutions, and other organizations in which the Company generates product and service revenue. Beginning in the first quarter of 2021, the Company launched its pooled testing initiative which focuses on providing end-to-end COVID-19 testing services to public health authorities. The Company currently offers pooled testing and reporting services for K-12 schools across the United States, at airports through its partnership with XpresCheck and the CDC, as well as through other congregate settings such as its partnership with Eurofins. The Company sells COVID-19 test kits on a standalone basis or as part of an end-to-end testing service. The Company records product revenue from sales of LFA, PCR, and pooled test kits. The Company records service revenue from sales of its end-to-end COVID-19 testing services, which consist of multiple promised goods and services including sample collection kits, physician authorizations, onsite test administration, outsourced

laboratory PCR analysis, and access to results reported through the Company’s proprietary web-based portal. The Company recognizes its product and service revenue using the five-step model under ASC 606.

 

Product revenue is recognized when the test kits are shipped and risk of loss is transferred to the carrier. The Company’s test kits are generally not subject to a customer right of return except for product recalls under the rules and regulations of the U.S. Food and Drug Administration (“FDA”). The Company has elected to include shipping and handling fees billed to customers as a component of Biosecurity revenue.

 

Service revenue from the Company’s end-to-end COVID-19 testing services is recognized upon completion of the tests and release of the test results on the web-based portal. The Company has identified one performance obligation in its testing services contracts that represents a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer, with each test as a distinct service within the series. As the price for the testing services is fixed under each customer contract, the Company has elected the practical expedient to recognize revenue at the amount to which it has the right to invoice for services performed. The Company’s testing services contracts are generally one year or less in length and contain fixed unit pricing. Under typical payment terms for testing services, amounts are billed monthly in arrears for services performed or in advance based on contractual billing terms.

Cost of Biosecurity Revenue

Cost of Biosecurity Revenue

Cost of Biosecurity product revenue consists of costs associated with the sale of diagnostic and sample collection test kits which includes costs paid to purchase test kits from third parties. Cost of Biosecurity service revenue consists of costs associated with the provision of the Company’s end-to-end COVID-19 testing services, which includes costs paid to provide sample collection kits, physician authorizations, onsite test administration, outsourced laboratory PCR analysis, access to results reported through a web-based portal and reporting of results to public health authorities.

Research and Development Costs

Research and Development Costs

Research and development costs are expensed as incurred. Research and development costs consist of direct and indirect internal costs related to specific projects and initiatives, acquired intellectual property deemed to be in-process research and development, as well as fees paid to other entities that conduct certain research and development activities on the Company’s behalf.

Patent Costs

Patent Costs

The Company expenses all costs as incurred in connection with the filing, prosecution, maintenance, defense, and enforcement of patent applications, including direct application fees and related legal and consulting expenses. Patent costs are included in general and administrative expenses within the consolidated statements of operations and comprehensive loss.

Stock-Based Compensation

Stock-Based Compensation

The Company measures and recognizes compensation expense for all stock-based awards based on estimated grant-date fair values recognized over the requisite service period. For awards that vest solely based on a service condition, the Company recognizes compensation expense on a straight-line basis over the requisite service period. For awards that vest based on multiple conditions, the Company recognizes compensation expense using the accelerated attribution method on a tranche-by-tranche basis over the requisite service period such that the amount of compensation expense recognized at each reporting period is at least equal to the vested tranches at that date. For awards with a performance-based vesting condition, the Company recognizes stock-based compensation when achievement of the performance condition is deemed probable, and upon achieving a performance condition that was not previously considered as probable, records a cumulative catch-up adjustment to reflect the portion of the grantee’s requisite service that has been provided to date. For awards with market conditions, the compensation expense recognized over the requisite service period is not reversed if the market condition is not satisfied. The Company recognizes forfeitures as they occur.

 

The Company estimates the grant date fair value of stock options using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires the input of subjective assumptions, including fair value of common stock (for options granted prior to the SRNG Business Combination), expected term, expected volatility, risk-free interest rate and expected dividend yield. The expected term is determined using the “simplified” method, which estimates the expected term as the average of the vesting term plus the contractual term. The Company uses the “simplified” method as it does not have

sufficient historical data regarding employee exercise behavior. Expected volatility is based on the historical volatility of the stock prices of similar publicly traded peer companies. The risk-free interest rate is based on the yield available on U.S. Treasury zero-coupon issues similar in duration to the expected term of the stock options. The Company has not paid, and does not expect to pay, dividends in the foreseeable future.

 

For awards with market conditions, the Company determines the grant date fair value using a Monte Carlo simulation model, which incorporates various assumptions including expected stock price volatility, risk-free interest rates, expected term, and expected dividend yield. The Company determines expected volatility using the historical volatility of the stock prices of similar publicly traded peer companies. The risk-free interest rate is based on the yield available on U.S. Treasury zero-coupon issues similar in duration to the expected term of the awards. The expected term is equal to the contractual term and a dividend yield of zero is assumed.

 

For awards granted prior to the SRNG Business Combination, the Company utilized the hybrid method to estimate the grant date fair value of its common stock underlying its stock-based awards. The hybrid method is a probability-weighted expected return method (“PWERM”) where the equity value in at least one scenario is allocated using an option pricing method (“OPM”). Under the PWERM, the value of the common stock is estimated based on the probability-weighted present value of expected future investment returns considering various liquidity events and the rights and privileges of each class of equity. Under the OPM, each class of stock is treated as a call option on the Company’s equity value, with exercise prices based on the liquidation preferences of the convertible preferred stock. The Black-Scholes model is used to price the call options which includes assumptions for the time to liquidity and volatility of equity value. A discount for lack of marketability is then applied to the common stock value. There are significant judgments and estimates inherent in determining the fair value of the common stock. These judgments and estimates include factors, both subjective and objective, including: (i) a discount for lack of marketability; (ii) external market data; (iii) historical activity by the Company in selling equity to outside investors; (iv) the Company’s stage of development; (v) rights and preferences of the Company’s equity securities that rank senior to common stock; and (vi) the likelihood of various liquidity events, among others. Changes to these assumptions could result in different fair values of common stock.

Income Taxes

Income Taxes

The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the consolidated financial statements or in the Company’s tax returns. Under this method, deferred tax assets and liabilities are determined based on differences between the financial statement carrying amounts and the tax bases of the assets and liabilities using the enacted tax rates in effect in the years in which the differences are expected to reverse. A valuation allowance against deferred tax assets is recorded if, based on the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Potential for recovery of deferred tax assets is evaluated by considering several factors, including estimating the future taxable profits expected, estimating future reversals of existing taxable temporary differences, considering taxable profits in carryback periods, and considering prudent and feasible tax planning strategies.

The Company accounts for uncertain tax positions using a more-likely-than-not threshold for recognizing and resolving uncertain tax positions. The evaluation of uncertain tax positions is based on factors including, but not limited to, changes in the law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, new audit activity, and changes in facts or circumstances related to a tax position. The Company evaluates uncertain tax positions on an annual basis and adjusts the level of the liability to reflect any subsequent changes in the relevant facts surrounding the uncertain positions. The Company accounts for interest and penalties related to uncertain tax positions as part of its provision for income taxes. As of December 31, 2022 and 2021, the Company did not have any uncertain tax positions and no accrued interest or penalties related to uncertain tax positions. The Company does not expect a material change in unrecognized tax benefits in the next twelve months.

Warrant Liabilities

Warrant Liabilities

The Company classifies Private Placement Warrants and Public Warrants (both defined and discussed in Note 9) as liabilities. At the end of each reporting period, changes in fair value during the period are recognized as change in fair value of warrant liabilities on the consolidated statements of operations and comprehensive loss. The Company will continue to adjust the warrant liability for changes in the fair value until the earlier of (a) the exercise or expiration of the warrants or (b) the redemption of the warrants, at which time the warrants will be reclassified to additional paid-in capital.

Foreign Currency Translation

Foreign Currency Translation

The functional currency of the Company's foreign subsidiaries is their local currency. The Company translates the non-United States dollar-denominated assets and liabilities using the exchange rates prevailing at the end of each reporting period and translates revenues and expenses using the average exchange rates in the reporting period. Foreign currency translation adjustments are recorded as a component of other comprehensive loss on the consolidated statements of operations and comprehensive loss and accumulated in other comprehensive loss in stockholders equity.

Comprehensive Loss

Comprehensive Loss

Comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Other comprehensive loss consists of foreign currency translation adjustments.

Net Loss per Share

Net Loss per Share

The Company follows the two-class method when computing net loss per share attributable to Ginkgo Bioworks Holdings, Inc. common stockholders as the Company has issued shares that meet the definition of participating securities. The two-class method determines net loss per share for each class of common and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires earnings for the period to be allocated between common and participating securities based upon their respective rights to share in the earnings as if all earnings for the period had been distributed. During periods of loss, there is no allocation required under the two-class method since the participating securities do not have a contractual obligation to fund the losses of the Company.

Basic net loss per share is computed by dividing the net loss attributable to Ginkgo Bioworks Holdings, Inc. common stockholders by the weighted average number of common shares outstanding for the period. Diluted net loss per share is equal to the net loss attributable to Ginkgo Bioworks Holdings, Inc. common stockholders less the gain (if any) on the change in fair value of warrant liabilities, divided by the weighted average number of common shares outstanding for the period, including the effect of potentially dilutive common shares. For purposes of this calculation, outstanding options to purchase shares of common stock, unvested restricted stock awards, unvested restricted stock units, warrants to purchase shares of common stock and contingently issued earnout shares are considered potentially dilutive common shares.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842): Amendments to the FASB Accounting Standards Codification, which has been clarified and amended by various subsequent updates. ASC 842 requires lessees to record a right-of-use asset and a lease liability on the balance sheet for all leases with a lease term of more than 12 months. ASC 842 also requires additional disclosures about the amount, timing and uncertainty of cash flows arising from leases. The Company adopted ASC 842 on January 1, 2022 (the "effective date"), using the modified retrospective approach with a cumulative-effect adjustment to the opening balance of accumulated deficit in the period of adoption. The Company has elected to apply the package of practical expedients that allows for not reassessing (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification of any expired or existing leases, and (iii) the accounting for initial direct costs for any existing leases. The Company has also elected, by class of underlying asset, not to apply the recognition requirements of ASC 842 to short-term leases.

Upon adoption of ASC 842 on January 1, 2022, the Company (i) recognized $147.7 million of operating lease ROU assets and $166.7 million of operating lease liabilities, (ii) reclassified the previously recognized liabilities for deferred rent of $8.5 million and lease incentives of $10.5 million to operating lease ROU assets, (iii) derecognized build-to-suit assets of $17.8 million previously presented within property, plant, and equipment, net, derecognized the build-to-suit lease financing obligation of $22.6 million, and (iv) recorded a cumulative-effect adjustment of $5.2 million to accumulated deficit as of January 1, 2022. Finance leases are not significant to the Company’s financials. The adoption of ASC 842 did not have a material impact on the Company's results of operations and cash flows.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and subsequently issued multiple amendments to the standard (collectively, “ASU 2016-13”). The provisions of ASU 2016-13 modify the impairment model to utilize an expected loss model in place of the incurred loss model and require a consideration of a broader range of reasonable and supportable information to inform credit loss

estimates. The Company adopted ASU 2016-13 effective January 1, 2022. The adoption of ASU 2016-13 did not have a material impact on the Company's consolidated financial statements and related disclosures.

In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”). The provisions of ASU 2019-12 eliminate certain exceptions related to the approach for intraperiod tax allocation and deferred tax liabilities for outside basis differences and clarify when a step-up in the tax basis of goodwill should be considered part of a business combination or a separate transaction. It also clarifies and simplifies other aspects of the accounting for income taxes. The Company adopted ASU 2019-12 on January 1, 2022. The adoption of ASU 2019-12 did not have a material impact on the Company's consolidated financial statements and related disclosures.

In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)—Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the FASB Emerging Issues Task Force) (“ASU 2020-01”). ASU 2020-01 addresses accounting for the transition into and out of the equity method and clarifies the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. The Company adopted ASU 2020-01 on January 1, 2022. The adoption of ASU 2020-01 did not have a material impact on the Company's consolidated financial statements and related disclosures.

 

In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance ("ASU 2021-10"). This update requires annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy including: (1) the types of transactions; (2) the accounting for the transactions; and (3) the effect of the transactions on a business entity’s financial statements. The Company adopted ASU 2021-10 on January 1, 2022. The adoption of ASU 2021-10 did not have a material impact on the Company's consolidated financial statements and related disclosures.

Recently Issued Accounting Pronouncements

In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. This standard clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security, and therefore is not considered in measuring fair value. It also introduces required disclosures for equity securities subject to contractual sale restrictions. This standard becomes effective for the Company on January 1, 2024, with early adoption permitted. The Company is considering the impact of this pronouncement on the financial statements.

 

In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging- Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) which simplifies the accounting for convertible instruments by reducing the number of accounting models and the number of embedded conversion features that could be recognized separately from the host contract. Additionally, ASU 2020-06 removes certain settlement conditions that are required for contracts in an entity's own equity to qualify for the derivatives scope exception. The guidance also modifies diluted earnings per share calculations by requiring entities to use the if-converted method for convertible instruments and to assume share settlement when an instrument can be settled in cash or shares. The guidance is effective for the Company on January 1, 2024 with early adoption permitted. The Company is currently evaluating the impact that the implementation of this standard will have on its consolidated financial statements and related disclosures.

v3.22.4
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Schedule of Estimated Lives of Property and Equipment Estimated lives of property, plant and equipment are as follows:

 

 

Estimated Useful Life

Computer equipment and software

2 to 5 years

Furniture and fixtures

7 years

Lab equipment

1 to 5 years

Buildings and facilities

15 to 30 years

Vehicles

5 years

Leasehold improvements

Shorter of useful life or remaining lease term

v3.22.4
Business Combinations and Acquisitions (Tables)
12 Months Ended
Dec. 31, 2022
Dutch Dna Biotech BV [Member]  
Business Acquisition [Line Items]  
Summary of Acquisition Date Fair Value of the Consideration Transferred

The following table summarizes the preliminary acquisition date fair value of the consideration transferred for Dutch DNA (in thousands):

 

Cash

 

$

11,451

 

Fair value of Class A common stock

 

 

15,087

 

Contingent consideration

 

 

8,760

 

Total Dutch DNA consideration

 

$

35,298

 

Fair Values of Assets Acquired and Liabilities Assumed

The following table presents the final allocation of the purchase price to the assets acquired and liabilities assumed as of the acquisition date (in thousands):

 

 

Preliminary Allocation

 

 

Measurement Period Adjustments (3)

 

 

Final Allocation

 

Cash

 

$

387

 

 

$

 

 

$

387

 

Accounts receivable

 

 

149

 

 

 

 

 

 

149

 

Prepaid expenses and other current assets

 

 

170

 

 

 

 

 

 

170

 

Property and equipment

 

 

234

 

 

 

 

 

 

234

 

Intangibles (1)

 

 

20,500

 

 

 

 

 

 

20,500

 

Goodwill (2)

 

 

15,177

 

 

 

4,839

 

 

 

20,016

 

Accounts payable

 

 

(194

)

 

 

 

 

 

(194

)

Accrued expenses and other current liabilities

 

 

(137

)

 

 

(49

)

 

 

(186

)

Deferred tax liability

 

 

 

 

 

(4,790

)

 

 

(4,790

)

Other non-current liabilities

 

 

(988

)

 

 

 

 

 

(988

)

Net assets acquired

 

$

35,298

 

 

$

 

 

$

35,298

 

(1) Estimated useful life of 15 years.

(2) Non-deductible for tax purposes.

(3) Represents adjustment related to deferred income taxes and the final determination of net-working capital as of the acquisition date.

Bayer Acquisition and Joint Venture [Member]  
Business Acquisition [Line Items]  
Schedule of summary of the purchase price A summary of the purchase price relating to the business combination is as follows (in thousands):

Cash

 

$

79,825

 

Fair value of previously held equity interest in Joyn

 

 

14,000

 

Fair value of notes receivable from Joyn

 

 

10,119

 

Total purchase consideration

 

$

103,944

 

Summary of intengible assets acquired on preliminary valuation

The following table summarizes the preliminary fair value of assets acquired as of the acquisition date (in thousands):

Property, plant, and equipment

 

$

83,951

 

Intangible assets

 

 

11,500

 

Goodwill

 

 

11,172

 

Deferred tax liability

 

 

(2,679

)

Net assets acquired

 

$

103,944

 

FGen AG [Member]  
Business Acquisition [Line Items]  
Summary of Acquisition Date Fair Value of the Consideration Transferred

The consideration paid was comprised of common stock and contingent consideration as follows (in thousands):

Fair value of Class A common stock

 

$

17,015

 

Contingent consideration - restricted stock

 

 

3,842

 

Contingent consideration - milestones

 

 

8,464

 

Total FGen consideration

 

$

29,321

 

Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary fair value of assets acquired and liabilities assumed as of the acquisition date (in thousands):

 

 

 

Preliminary Allocation

 

 

Measurement Period Adjustment

 

 

Adjusted Allocation

 

Cash and cash equivalents

 

$

1,430

 

 

$

 

 

$

1,430

 

Accounts receivable

 

 

144

 

 

 

 

 

 

144

 

Other non-current assets

 

 

10

 

 

 

 

 

 

10

 

Property and equipment

 

 

146

 

 

 

(112

)

 

 

34

 

Intangible assets (1)

 

 

21,100

 

 

 

 

 

 

21,100

 

Goodwill (2)

 

 

11,001

 

 

 

(386

)

 

 

10,615

 

Accounts payable and accrued expenses

 

 

(29

)

 

 

 

 

 

(29

)

Deferred revenue

 

 

(104

)

 

 

 

 

 

(104

)

Deferred tax liability

 

 

(4,377

)

 

 

498

 

 

 

(3,879

)

Net assets acquired

 

$

29,321

 

 

$

 

 

$

29,321

 

(1) Estimated useful life of 15 years.

(2) Non-deductible for tax purposes.

SRNG [Member]  
Business Acquisition [Line Items]  
Summary of Net Proceeds from Business Combination

The following table summarizes the elements of the net proceeds from the SRNG Business Combination (in thousands):

 

Cash - SRNG Trust and cash (net of redemptions)

 

$

857,747

 

Cash - PIPE Investment

 

 

760,000

 

Less: Payment of underwriter fees and other offering costs

 

 

(108,118

)

Net proceeds from the SRNG Business Combination

 

$

1,509,629

 

Schedule of Business Combination Common Stock Shares Outstanding

The following table summarizes the number of shares of common stock outstanding immediately following the consummation of the SRNG Business Combination:

 

SRNG shares outstanding prior to the SRNG Business Combination

 

 

215,625,000

 

Less: redemption of SRNG shares prior to the SRNG Business Combination

 

 

(86,725,312

)

Less: SRNG shares forfeited

 

 

(11,534,052

)

Common stock of SRNG (1)

 

 

117,365,636

 

Shares issued pursuant to the PIPE Investment

 

 

76,000,000

 

SRNG Business Combination and PIPE Investment shares

 

 

193,365,636

 

Conversion of Old Ginkgo Series B preferred stock to common stock

 

 

203,346,152

 

Conversion of Old Ginkgo Series C preferred stock to common stock

 

 

228,641,430

 

Conversion of Old Ginkgo Series D preferred stock to common stock

 

 

302,464,716

 

Conversion of Old Ginkgo Series E preferred stock to common stock

 

 

170,227,108

 

Conversion of Old Ginkgo common stock (2)

 

 

387,016,194

 

Total shares of Ginkgo common stock outstanding immediately following the SRNG Business Combination

 

 

1,485,061,236

 

 

(1) Includes 16,737,183 shares of Class A common stock, the Sponsor Earnout Shares, that are subject to forfeiture if certain earnout conditions are not met, as the shares are legally outstanding as of the Closing of the SRNG Business Combination.

(2) Excludes 283,396,094 shares of Class A and Class B common stock underlying rollover equity instruments (i.e., restricted stock units and stock options) and 259,440 shares of Class A and Class B common stock underlying unvested restricted stock awards.

Zymergen [Member]  
Business Acquisition [Line Items]  
Schedule of Summarizes Of Acquisition Date Fair Value Of The Consideration Transferred For Zymergen

The following table summarizes the acquisition date fair value of the consideration transferred for Zymergen (in thousands):

 

Fair value of Class A common stock issued to Zymergen shareholders (1)

 

$

236,331

 

Fair value of replacement Ginkgo RSUs and Ginkgo Class A common stock issued under Zymergen RIFs attributable to pre-combination services (2)

 

 

1,571

 

Less: Cash severance and retention bonuses incurred for the benefit of the combined company (3)

 

 

(6,152

)

Total Zymergen consideration

 

$

231,750

 

 

(1)

As consideration for the Zymergen Acquisition, the Company delivered to Zymergen stockholders 99,422,907 shares of its Class A common stock, of which approximately 96,859,594 represents consideration transferred for the Zymergen Acquisition under ASC 805. The fair value of the Company’s Class A common stock issued as consideration transferred was determined based on $2.44 per share, which was the closing price of the Company’s Class A common stock on the Zymergen Closing Date. An immaterial amount related to the incremental value received by the holders of Zymergen stock options was excluded from total consideration transferred and recognized as post-combination compensation expense.

(2)

Represents the fair value of the replacement Ginkgo RSUs and Ginkgo Class A common stock issued under the Zymergen RIFs attributable to pre-combination services. The remaining portion of the fair value is associated with future service and will be recognized as stock-based compensation expense in the period subsequent to the Zymergen Acquisition over the remaining service period.

(3)

Represents cash bonuses payable to Zymergen employees in accordance with Zymergen severance and retention plans at the Zymergen Closing Date. These payments were determined to be for the benefit of the combined company, and accordingly, a portion of the fair value otherwise recognized as consideration transferred was allocated to post-combination compensation expense.

Summary of Acquisition Date Fair Value of the Consideration Transferred

The following table summarizes the preliminary acquisition date fair value of the consideration transferred for Zymergen (in thousands):

 

Cash and cash equivalents

 

$

150,553

 

Accounts receivable

 

 

980

 

Inventory

 

 

1,166

 

Prepaid expenses and other current assets

 

 

11,592

 

Property and equipment

 

 

97,194

 

Operating lease right-of-use assets

 

 

205,349

 

Intangible assets

 

 

18,600

 

Goodwill

 

 

12,874

 

Other non-current assets

 

 

11,898

 

Accounts payable

 

 

(13,907

)

Deferred revenue

 

 

(8,189

)

Accrued expenses and other current liabilities

 

 

(55,917

)

Operating lease liabilities

 

 

(194,582

)

Deferred tax liability

 

 

(5,690

)

Other non-current liabilities

 

 

(171

)

Net assets acquired

 

$

231,750

 

Summary of intengible assets acquired on preliminary valuation

Based on the preliminary valuation, intangible assets are as follows (in thousands):

 

 

 

Estimated fair value

 

 

Estimated useful life (in years)

 

Developed technology

 

$

14,900

 

 

 

10

 

Database

 

 

3,700

 

 

 

7

 

Total

 

$

18,600

 

 

 

 

Summary Business Acquisition Pro Forma Information

The following supplemental pro forma financial information presents the combined results of operations of the Company and Zymergen as if the acquisition had occurred on January 1, 2021. The pro forma financial information is presented for informational purposes only and is not necessarily indicative of the operating results that would have been realized if the Zymergen Acquisition had been completed on January 1, 2021, or of future operating results. The pro forma financial information reflects pro forma adjustments to give effect to certain events the Company believes to be directly attributable to the Zymergen Acquisition, including depreciation and amortization expense related to acquired tangible and intangible assets, acquisition-related costs, stock-based compensation expense, retention and severance bonuses, and adjustments to align inventory and leasing accounting policies.

 

 

 

Year Ended December 31,

 

(in thousands)

 

2022

 

 

2021

 

Total revenue

 

$

489,670

 

 

$

330,580

 

Net loss

 

$

(2,366,005

)

 

$

(2,235,586

)

v3.22.4
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]  
Summary of Assets and Liabilities That Are Measured At Fair Value On Recurring Basis

The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis (in thousands):

 

 

 

As of December 31, 2022

 

 

 

 

Total

 

 

 

Level 1

 

 

 

Level 2

 

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

Cash and cash equivalents

 

$

1,089,026

 

 

 

 

$

1,089,026

 

 

 

 

$

 

 

 

 

$

 

Synlogic, Inc. warrants (1)

Investments

 

 

1,937

 

 

 

 

 

 

 

 

 

 

1,937

 

 

 

 

 

 

Marketable equity securities (2)

Investments

 

 

25,714

 

 

 

 

 

21,312

 

 

 

 

 

4,402

 

 

 

 

 

 

Notes receivable

Other non-current assets

 

 

37,660

 

 

 

 

 

 

 

 

30,000

 

 

 

 

7,660

 

Total assets

 

 

$

1,154,337

 

 

 

 

$

1,110,338

 

 

 

 

$

36,339

 

 

 

 

$

7,660

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Public Warrants

Warrant liabilities

 

$

6,900

 

 

 

 

$

6,900

 

 

 

 

$

 

 

 

 

$

 

Private Placement Warrants

Warrant liabilities

 

 

3,968

 

 

 

 

 

 

 

 

 

 

108

 

 

 

 

 

3,860

 

Contingent consideration

Accrued expenses and other current liabilities

 

 

6,378

 

 

 

 

 

 

 

 

 

 

 

 

6,378

 

Contingent consideration

Other non-current liabilities

 

 

18,095

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18,095

 

Total liabilities

 

 

$

35,341

 

 

 

 

$

6,900

 

 

 

 

$

108

 

 

 

 

$

28,333

 

 

 

 

 

As of December 31, 2021

 

 

Classification

 

Total

 

 

 

Level 1

 

 

 

Level 2

 

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

Cash and cash equivalents

 

$

1,482,063

 

 

 

 

$

1,482,063

 

 

 

 

$

 

 

 

 

$

 

Synlogic, Inc. warrants (1)

Investments

 

 

6,166

 

 

 

 

 

 

 

 

 

 

6,166

 

 

 

 

 

 

Marketable equity securities (2)

Investments

 

 

25,676

 

 

 

 

 

15,345

 

 

 

 

 

10,331

 

 

 

 

 

 

Notes receivable

Prepaid expenses and other current assets

 

 

11,559

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,559

 

Total assets

 

 

$

1,525,464

 

 

 

 

$

1,497,408

 

 

 

 

$

16,497

 

 

 

 

$

11,559

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Public Warrants

Warrant liabilities

 

$

77,280

 

 

 

 

$

77,280

 

 

 

 

$

 

 

 

 

$

 

Private Placement Warrants

Warrant liabilities

 

 

58,558

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

58,558

 

Contingent consideration

Other non-current liabilities

 

 

8,467

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,467

 

Total liabilities

 

 

$

144,305

 

 

 

 

$

77,280

 

 

 

 

$

 

 

 

 

$

67,025

 

(1) The fair value of Synlogic, Inc. warrants is calculated as the quoted price of the underlying common stock, less the unpaid exercise price of the warrants.

(2) Marketable equity securities classified as Level 2 reflect a discount for lack of marketability due to regulatory sales restrictions, which lapsed on a portion of the shares held during the year ended December 31, 2022 and were reclassified as Level 1.

Summary of Fair Value Measurements Inputs

The following table provides quantitative information regarding Level 3 inputs used in the recurring valuation of the Private Placement Warrants as of their measurement dates:

 

 

December 31, 2022

 

 

December 31, 2021

 

Exercise price

 

$

11.50

 

 

$

11.50

 

Stock price

 

$

1.69

 

 

$

8.31

 

Volatility

 

 

71.5

%

 

 

58.7

%

Term (in years)

 

 

3.71

 

 

4.71

 

Risk-free interest rate

 

 

4.11

%

 

 

1.25

%

 

Schedule of Change in the Fair Value of the Warrant Liability

The following table provides a reconciliation of notes receivable measured at fair value using Level 3 significant unobservable inputs (in thousands):

 

 

2022

 

 

2021

 

Balance at January 1

 

$

11,559

 

 

$

15,566

 

Additions

 

 

7,660

 

 

 

 

Proceeds from notes receivable

 

 

(10,404

)

 

 

(304

)

Conversion of notes to preferred stock

 

 

 

 

 

(195

)

Change in fair value

 

 

705

 

 

 

(3,508

)

Write-off

 

 

(1,860

)

 

 

 

Balance at December 31

 

$

7,660

 

 

$

11,559

 

 

Refer to Note 21 for further discussion regarding the potential impacts of the closure of Silicon Valley Bank to the Company’s notes receivable.

Summary of recurring Level 3 fair value measurements of contingent consideration liabilities

The following table provides quantitative information regarding Level 3 inputs used in the fair value measurements of contingent consideration liabilities as of the periods presented:

 

 

 

 

 

 

December 31, 2022

 

 

December 31, 2021

 

Contingent Consideration Liability

 

Valuation Technique

 

Unobservable Input

 

Range

 

 

Range

 

Earnout payments (FGen, Dutch DNA, Circularis and Altar acquisitions)

 

Probability-weighted present value

 

Probability of payment

 

2%-100%

 

 

10% - 80%

 

 

 

 

 

Discount rate

 

12.20%-13.11%

 

 

10.7% - 11.3%

 

Earnout payments (Dutch DNA acquisition)

 

Discounted cash flow

 

Projected years of payments

 

2025-2028

 

 

2022 - 2037

 

 

 

 

 

Discount rate

 

 

12.0

%

 

 

9

%

 

Contingent Consideration [Member]  
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]  
Schedule of Change in the Fair Value of the Warrant Liability

The following table provides a reconciliation of the contingent consideration liability measured at fair value using Level 3 inputs (in thousands):

 

 

2022

 

 

2021

 

Balance at January 1

 

$

8,467

 

 

$

 

Additions

 

 

19,912

 

 

 

8,760

 

Change in fair value

 

 

(1,262

)

 

 

(293

)

Settlements and payments

 

 

(2,644

)

 

 

 

Balance at December 31

 

$

24,473

 

 

$

8,467

 

Private Placement Warrants [Member]  
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]  
Schedule of Change in the Fair Value of the Warrant Liability

The following table provides a reconciliation of the Private Placement Warrants measured at fair value using Level 3 inputs (in thousands):

 

 

2022

 

 

2021

 

Balance at January 1

 

$

58,558

 

 

$

 

Additions pursuant to the SRNG Business Combination

 

 

 

 

 

90,263

 

Transfer to Level 2

 

 

(125

)

 

 

 

Change in fair value

 

 

(54,573

)

 

 

(31,705

)

Balance at December 31

 

$

3,860

 

 

$

58,558

 

v3.22.4
Prepaid Expenses and Other Current Assets (Tables)
12 Months Ended
Dec. 31, 2022
Prepaid Expense and Other Assets, Current [Abstract]  
Summary of Prepaid expenses and other current assets

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):

 

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

Prepaid expenses

 

$

18,145

 

 

$

9,739

 

Prepaid insurance

 

 

16,960

 

 

 

9,199

 

Prepaid inventory

 

 

 

 

 

144

 

Notes receivable

 

 

 

 

 

11,559

 

Other receivables

 

 

1,561

 

 

 

2,198

 

Security deposits

 

 

2,084

 

 

 

 

Restricted cash

 

 

8,221

 

 

 

 

Other current assets

 

 

487

 

 

 

698

 

Prepaid expenses and other current assets

 

$

47,458

 

 

$

33,537

 

v3.22.4
Inventory, net (Tables)
12 Months Ended
Dec. 31, 2022
Inventory Disclosure [Abstract]  
Schedule of Inventory, Net

Inventory, net consisted of the following (in thousands):

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

Finished goods

 

$

6,556

 

 

$

3,264

 

Raw materials

 

 

1,590

 

 

 

64

 

Work in process

 

 

 

 

 

50

 

Less: Inventory reserve

 

 

(3,782

)

 

 

(16

)

Inventory, net

 

$

4,364

 

 

$

3,362

 

 

v3.22.4
Property and Equipment, Net (Tables)
12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Schedule of Property, Plant and Equipment Net

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

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

Buildings and facilities

 

$

46,019

 

 

$

12,762

 

Furniture and fixtures

 

 

8,206

 

 

 

4,617

 

Lab equipment

 

 

183,292

 

 

 

113,963

 

Computer equipment and software

 

 

15,219

 

 

 

10,129

 

Leasehold improvements

 

 

125,307

 

 

 

55,033

 

Construction in progress

 

 

23,426

 

 

 

10,278

 

Land

 

 

6,060

 

 

 

 

Vehicles

 

 

 

 

 

40

 

Total property, plant, and equipment

 

 

407,529

 

 

 

206,822

 

Less: Accumulated depreciation and amortization

 

 

(92,756

)

 

 

(61,052

)

Property, plant, and equipment, net

 

$

314,773

 

 

$

145,770

 

v3.22.4
Investments and Equity Method Investments (Tables)
12 Months Ended
Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of Investments and Equity Method Investments

Investments and equity method investments consisted of the following (in thousands):

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

Investments:

 

 

 

 

 

 

Genomatica, Inc. preferred stock

 

$

44,885

 

 

$

55,000

 

Synlogic, Inc. common stock

 

 

4,819

 

 

 

15,345

 

Synlogic, Inc. warrants

 

 

1,937

 

 

 

6,166

 

Marketable equity securities

 

 

20,895

 

 

 

10,331

 

Non-marketable equity securities

 

 

17,544

 

 

 

15,195

 

SAFEs

 

 

22,108

 

 

 

 

Total

 

$

112,188

 

 

$

102,037

 

Equity method investments (1):

 

 

 

 

 

 

Joyn Bio, LLC

 

$

 

 

$

11,694

 

BiomEdit, LLC

 

 

369

 

 

 

 

Other

 

 

1,174

 

 

 

1,500

 

Total

 

$

1,543

 

 

$

13,194

 

 

 

(1) Equity method investments in Platform Ventures with a carrying value of zero as of December 31, 2022 and 2021 were excluded from the table above.

(Loss) gain on investments and equity method investments consisted of the following (in thousands):

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

(Loss) gain on investments:

 

 

 

 

 

 

 

 

 

Synlogic, Inc. common stock

 

$

(10,526

)

 

$

1,649

 

 

$

(2,663

)

Synlogic, Inc. warrants

 

 

(4,230

)

 

 

662

 

 

 

(1,070

)

Genomatica, Inc.

 

 

(10,115

)

 

 

 

 

 

 

Marketable equity securities

 

 

(28,269

)

 

 

(13,854

)

 

 

 

Non-marketable equity securities

 

 

(195

)

 

 

 

 

 

 

Total

 

$

(53,335

)

 

$

(11,543

)

 

$

(3,733

)

Loss on equity method investments:

 

 

 

 

 

 

 

 

 

Joyn Bio, LLC (1)

 

$

(3,043

)

 

$

(17,230

)

 

$

(396

)

Allonnia, LLC

 

 

 

 

 

(12,698

)

 

 

 

Arcaea, LLC

 

 

 

 

 

(47,356

)

 

 

 

Verb Biotics, LLC

 

 

(15,900

)

 

 

 

 

 

 

BiomEdit, LLC

 

 

(8,503

)

 

 

 

 

 

 

Ayana, LLC

 

 

(15,989

)

 

 

 

 

 

 

Other

 

 

(326

)

 

 

 

 

 

 

Total

 

$

(43,761

)

 

$

(77,284

)

 

$

(396

)

 

(1) Comprised of $14.0 million gain on the remeasurement of the Company's equity interest in Joyn at fair value as of the acquisition date offset by a $17.0 million loss on the equity method investment. The loss on equity method investment in Joyn in excess over the carrying value of zero of the equity method investment in Joyn during the year ended December 31, 2022 was recorded as a reduction in the convertible promissory notes receivable from Joyn (see Note 20).

v3.22.4
Goodwill and Intangible Assets, net (Tables)
12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill

All goodwill is allocated to the Foundry reporting unit and segment identified in Note 15. Changes in the carrying amount of goodwill consisted of the following (in thousands):

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

Beginning balance

 

$

21,312

 

 

$

1,857

 

Goodwill acquired in acquisitions

 

 

39,712

 

 

 

15,177

 

Impact of foreign currency translation

 

 

(266

)

 

 

(722

)

Measurement period adjustments

 

 

(548

)

 

 

5,000

 

Ending balance

 

$

60,210

 

 

$

21,312

 

Schedule of Intangible Assets

Intangible assets, net consisted of the following (in thousands):

 

 

Gross
Carrying
Value
(1)

 

 

Accumulated
Amortization
(1)

 

 

Net
Carrying
Value

 

 

Weighted Average
Amortization Period

 

December 31, 2022:

 

 

 

 

 

 

 

 

 

 

 

 

Developed technology

 

$

115,824

 

 

$

(8,825

)

 

$

106,999

 

 

 

9.4

 

Database

 

 

3,700

 

 

 

(107

)

 

 

3,593

 

 

 

6.8

 

Customer relationships

 

 

380

 

 

 

(71

)

 

 

309

 

 

 

1.6

 

Assembled workforce

 

 

190

 

 

 

(50

)

 

 

140

 

 

 

1.0

 

Total intangible assets

 

$

120,094

 

 

$

(9,053

)

 

$

111,041

 

 

 

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Developed technology

 

$

25,038

 

 

$

(3,396

)

 

$

21,642

 

 

 

13.3

 

(1) Gross carrying value and accumulated amortization include the impact of cumulative foreign currency translation adjustments.

Schedule of Estimated Future Amortization Expense The estimated future amortization expense for intangible assets remaining as of December 31, 2022 is as follows (in thousands):

2023

 

$

15,769

 

2024

 

 

15,289

 

2025

 

 

15,165

 

2026

 

 

15,165

 

2027

 

 

12,158

 

Thereafter

 

 

37,495

 

Total

 

$

111,041

 

v3.22.4
Leases (Tables)
12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Schedule of Components Lease Cost

The components of total lease cost were as follows:

 

 

Year ended

 

 

December 31, 2022

 

Operating lease cost

$

35,242

 

Finance lease cost:

 

 

Amortization of ROU assets

 

1,871

 

Interest on lease liabilities

 

104

 

Finance lease cost

 

1,975

 

Variable lease cost

 

8,879

 

Sublease income

 

(5,190

)

Total lease cost

$

40,906

 

Schedule of Operating Leases Supplemental Cash Flow Information

Supplemental cash flow information related to the Company’s operating leases were as follows:

 

 

Year ended

 

 

December 31, 2022

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

Operating cash flows from finance leases

$

92

 

Operating cash flows from operating leases

$

13,587

 

Financing cash flows from finance leases

$

1,237

 

Schedule of Operating Leases Supplemental Balance Sheet Information

Supplemental balance sheet information related to operating leases were as follows:

 

 

December 31, 2022

 

Weighted average remaining lease term - operating leases (in years)

 

10.3

 

Weighted average remaining lease term - finance leases (in years)

 

2.3

 

Weighted average discount rate - operating leases

 

8.1

%

Weighted average discount rate - finance leases

 

3.7

%

Schedule of Maturity of Operating and Finance Lease Liabilities

The following table summarizes the maturity of the Company’s lease liabilities (in thousands):

 

Years Ending December 31,

 

Operating leases

 

 

Finance leases

 

2023

 

$

58,111

 

 

$

1,374

 

2024

 

 

62,125

 

 

 

1,079

 

2025

 

 

62,300

 

 

 

452

 

2026

 

 

57,300

 

 

 

19

 

2027

 

 

58,010

 

 

 

 

Thereafter

 

 

366,924

 

 

 

 

Total undiscounted payments

 

 

664,770

 

 

 

2,924

 

Less: imputed interest

 

 

(223,482

)

 

 

(119

)

Total lease liability

 

 

441,288

 

 

 

2,805

 

Less: current portion of lease liability

 

 

(28,032

)

 

 

(1,300

)

Lease liabilities, non-current

 

$

413,256

 

 

$

1,505

 

v3.22.4
Supplemental Balance Sheet Information (Tables)
12 Months Ended
Dec. 31, 2022
Supplemental Balance Sheet Information [Abstract]  
Schedule of Cash, Cash Equivalents and Restricted Cash

The reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet to the totals shown within the consolidated statements of cash flows is as follows (in thousands):

 

 

 

2022

 

 

2021

 

 

2020

 

Cash and cash equivalents

 

$

1,315,792

 

 

$

1,550,004

 

 

$

380,801

 

Restricted cash included in prepaid expenses and other current assets (1)

 

 

8,221

 

 

 

 

 

 

 

Restricted cash included in other non-current assets (1)

 

 

45,568

 

 

 

42,924

 

 

 

5,076

 

Total cash, cash equivalents and restricted cash

 

$

1,369,581

 

 

$

1,592,928

 

 

$

385,877

 

 

(1) Includes cash balances collateralizing letters of credit associated with the Company’s facility leases and a customer prepayment requiring segregation and restrictions in its use in accordance with the customer agreement.

Summary of Prepaid expenses and other current assets

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):

 

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

Prepaid expenses

 

$

18,145

 

 

$

9,739

 

Prepaid insurance

 

 

16,960

 

 

 

9,199

 

Prepaid inventory

 

 

 

 

 

144

 

Notes receivable

 

 

 

 

 

11,559

 

Other receivables

 

 

1,561

 

 

 

2,198

 

Security deposits

 

 

2,084

 

 

 

 

Restricted cash

 

 

8,221

 

 

 

 

Other current assets

 

 

487

 

 

 

698

 

Prepaid expenses and other current assets

 

$

47,458

 

 

$

33,537

 

Schedule of Inventory, Net

Inventory, net consisted of the following (in thousands):

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

Finished goods

 

$

6,556

 

 

$

3,264

 

Raw materials

 

 

1,590

 

 

 

64

 

Work in process

 

 

 

 

 

50

 

Less: Inventory reserve

 

 

(3,782

)

 

 

(16

)

Inventory, net

 

$

4,364

 

 

$

3,362

 

 

Schedule of Property, Plant and Equipment Net

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

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

Buildings and facilities

 

$

46,019

 

 

$

12,762

 

Furniture and fixtures

 

 

8,206

 

 

 

4,617

 

Lab equipment

 

 

183,292

 

 

 

113,963

 

Computer equipment and software

 

 

15,219

 

 

 

10,129

 

Leasehold improvements

 

 

125,307

 

 

 

55,033

 

Construction in progress

 

 

23,426

 

 

 

10,278

 

Land

 

 

6,060

 

 

 

 

Vehicles

 

 

 

 

 

40

 

Total property, plant, and equipment

 

 

407,529

 

 

 

206,822

 

Less: Accumulated depreciation and amortization

 

 

(92,756

)

 

 

(61,052

)

Property, plant, and equipment, net

 

$

314,773

 

 

$

145,770

 

Schedule of Other Non-Current Assets

Other non-current assets consisted of the following (in thousands):

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

Restricted cash

 

$

45,568

 

 

$

42,924

 

Notes receivable

 

 

37,660

 

 

 

 

Finance lease right-of-use assets, net

 

 

3,256

 

 

 

 

Other assets

 

 

2,241

 

 

 

1,066

 

Other non-current assets

 

$

88,725

 

 

$

43,990

 

 

Schedule of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):

 

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

Employee compensation and benefits

 

$

19,441

 

 

$

6,257

 

Professional fees

 

 

12,178

 

 

 

14,871

 

Property and equipment

 

 

11,624

 

 

 

991

 

Cost of Biosecurity product revenue accruals

 

 

12

 

 

 

4,565

 

Cost of Biosecurity service revenue accruals

 

 

15,401

 

 

 

28,726

 

Inventory related accruals

 

 

1,048

 

 

 

3,538

 

Lab supplies

 

 

3,434

 

 

 

560

 

External research and development expenses

 

 

1,844

 

 

 

11

 

Contingent consideration liability

 

 

6,378

 

 

 

 

Liability classified stock-based compensation

 

 

 

 

 

26,612

 

Finance lease liabilities

 

 

1,300

 

 

 

747

 

Operating lease liabilities

 

 

28,032

 

 

 

 

Other current liabilities

 

 

14,002

 

 

 

6,454

 

Accrued expenses and other current liabilities

 

$

114,694

 

 

$

93,332

 

v3.22.4
Stockholders' Equity (Tables)
12 Months Ended
Dec. 31, 2022
Stockholders' Equity Note [Abstract]  
Schedule of Capitalization

The following table presents the Company’s authorized, issued, and outstanding common stock as of the dates indicated:

 

 

Authorized

 

 

Issued

 

 

Outstanding

 

Common stock as of December 31, 2022:

 

 

 

 

 

 

 

 

Class A

 

10,500,000,000

 

 

 

1,448,234,796

 

 

 

1,337,498,554

 

Class B

 

4,500,000,000

 

 

 

383,648,604

 

 

 

354,477,410

 

Class C

 

800,000,000

 

 

 

200,000,000

 

 

 

200,000,000

 

 

 

15,800,000,000

 

 

 

2,031,883,400

 

 

 

1,891,975,964

 

Common stock as of December 31, 2021:

 

 

 

 

 

 

 

 

Class A

 

10,500,000,000

 

 

 

1,326,146,808

 

 

 

1,273,976,963

 

Class B

 

4,500,000,000

 

 

 

364,844,007

 

 

 

337,415,189

 

Class C

 

800,000,000

 

 

 

 

 

 

 

 

 

15,800,000,000

 

 

 

1,690,990,815

 

 

 

1,611,392,152

 

Schedule Of Common Stock Reserved For Future Issuances

Common Stock Reserved for Future Issuances

The Company had the following common stock reserved for future issuance as of the date indicated:

 

 

December 31, 2022

 

Stock options issued and outstanding

 

 

12,906,001

 

Restricted stock units outstanding

 

 

134,436,442

 

Shares available for grant under the 2021 Plan

 

 

185,532,349

 

Shares available for grant under the ESPP

 

 

20,000,000

 

Shares available for grant under the 2022 Inducement Plan

 

 

7,161,125

 

Warrants to purchase Class A common stock

 

 

51,824,895

 

Total common stock reserved for future issuances (1)

 

 

411,860,812

 

(1) Excludes unvested earnout shares which are restricted shares issued to equity holders of Old Ginkgo as part of the SRNG Business Combination (Note 3) and are recorded in equity as shares outstanding upon satisfying the vesting conditions.

v3.22.4
Stock Based Compensation (Tables)
12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Summary of Stock-based Compensation

The following table summarizes stock-based compensation expense by financial statement line item in the Company’s consolidated statements of operations and comprehensive loss for the periods presented (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Research and development

 

$

731,996

 

 

$

926,730

 

 

$

79

 

General and administrative

 

 

1,198,645

 

 

 

755,835

 

 

 

397

 

Total

 

$

1,930,641

 

 

$

1,682,565

 

 

$

476

 

Summary of Stock Option Activity

A summary of stock option activity for the year ended December 31, 2022 is presented below:

 

 

Number
of Shares

 

 

Weighted
Average
Exercise
Price
per Share

 

 

Weighted
Average
Remaining
Contractual
Term

 

 

 

Aggregate
Intrinsic
Value
(1)

 

 

 

 

 

 

 

 

 

(in years)

 

 

 

(in thousands)

 

Outstanding as of December 31, 2021

 

 

22,454,663

 

 

$

0.05

 

 

 

 

 

 

 

 

Granted

 

 

922,227

 

 

$

2.87

 

 

 

 

 

 

 

 

Exercised

 

 

(12,876,227

)

 

$

0.02

 

 

 

 

 

 

 

 

Outstanding as of December 31, 2022

 

 

10,500,663

 

 

$

0.34

 

 

 

2.06

 

 

 

 

$

15,902

 

Exercisable as of December 31, 2022

 

 

9,543,914

 

 

$

0.06

 

 

 

1.31

 

 

 

 

$

15,902

 

 

(1) The aggregate intrinsic value is calculated as the difference between the Company's closing stock price on the last trading day of the year and the exercise prices, multiplied by the number of in-the-money stock options.

Schedule of Assumptions Used to Estimate Fair Value of Stock Option Awards Granted The weighted-average fair value of options granted during the years ended December 31, 2022 and 2021 was $1.92 and $8.97 per share, respectively, and was calculated using the following assumptions. No options were granted during 2020.

 

 

Year Ended

 

 

Year Ended

 

 

 

December 31, 2022

 

 

December 31, 2021

 

Risk-free interest rate

 

 

3.13

%

 

 

0.11

%

Dividend yield

 

 

0

%

 

 

0

%

Expected volatility

 

 

76.9

%

 

 

88.6

%

Expected term

 

5.6 years

 

 

0.96 years

 

Summary of RSU and RSA Activity

A summary of the RSU and RSA activity for the year ended December 31, 2022 is presented below:

 

 

Restricted Stock Units

 

 

Restricted Stock Awards

 

 

 

Number of
Shares

 

 

Weighted
Average
Grant Date
Fair Value

 

 

Number of
Shares

 

 

Weighted
Average
Grant Date
Fair Value

 

Nonvested as of December 31, 2021

 

 

168,321,952

 

 

$

13.58

 

 

 

182,622

 

 

$

1.99

 

Granted

 

 

111,541,317

 

 

$

3.19

 

 

 

 

 

 

 

Vested

 

 

(136,182,791

)

 

$

13.10

 

 

 

(178,531

)

 

$

1.99

 

Forfeited

 

 

(9,244,036

)

 

$

7.79

 

 

 

 

 

 

 

Nonvested as of December 31, 2022

 

 

134,436,442

 

 

$

5.84

 

 

 

4,091

 

 

$

1.99

 

Schedule of Assumptions Used to Estimate Fair Value, Earnout RSUs

The grant date fair value of Earnout RSUs was estimated on the Closing Date and remeasured on the Modification Date using a Monte Carlo simulation model with the following assumptions:

 

 

Year Ended

 

 

 

December 31, 2021

 

Risk-free interest rate

 

0.84% - 1.21%

 

Expected volatility

 

53.1% - 81%

 

Expected term (in years)

 

4.83 - 5

 

Dividend yield

 

 

 

 

Summary of Activity For Earnout RSA

A summary of activity during the year ended December 31, 2022 for the Earnout RSUs and the earnout shares underlying Old Ginkgo RSAs ("Earnout RSAs") is presented below:

 

 

Number of
Shares

 

 

Weighted
Average
Grant Date
Fair Value

 

Nonvested as of December 31, 2021

 

 

27,863,125

 

 

$

12.87

 

Vested

 

 

(3,899,088

)

 

$

13.33

 

Forfeited

 

 

(444,075

)

 

$

12.92

 

Nonvested as of December 31, 2022

 

 

23,519,962

 

 

$

12.79

 

 

v3.22.4
Revenue Recognition (Tables)
12 Months Ended
Dec. 31, 2022
Disaggregation of Revenue [Abstract]  
Disaggregation Of Revenue

The following table sets forth the percentage of total Foundry revenue by industry:

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Consumer and technology

 

 

45

%

 

 

36

%

 

 

12

%

Pharma and Biotech

 

 

22

%

 

 

8

%

 

 

2

%

Industrial and environment

 

 

12

%

 

 

16

%

 

 

29

%

Food and nutrition

 

 

9

%

 

 

25

%

 

 

35

%

Agriculture

 

 

8

%

 

 

8

%

 

 

13

%

Government and Defense

 

 

4

%

 

 

7

%

 

 

9

%

Total Foundry revenue

 

 

100

%

 

 

100

%

 

 

100

%

v3.22.4
Segment Information (Tables)
12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment

The following table presents summary results of the Company’s reportable segments for the periods indicated (in thousands):

 

Year Ended December 31,

 

 

2022

 

 

2021

 

 

2020

 

Revenue:

 

 

 

 

 

 

 

 

Foundry

$

143,666

 

 

$

112,989

 

 

$

59,221

 

Biosecurity

 

334,040

 

 

 

200,848

 

 

 

17,436

 

Total revenue

 

477,706

 

 

 

313,837

 

 

 

76,657

 

Segment cost of revenue:

 

 

 

 

 

 

 

 

Biosecurity

 

204,216

 

 

 

129,690

 

 

 

15,611

 

Segment research and development expense:

 

 

 

 

 

 

 

 

Foundry

 

273,356

 

 

 

160,634

 

 

 

84,755

 

Biosecurity

 

1,937

 

 

 

31,035

 

 

 

62,219

 

Total segment research and development expense

 

275,293

 

 

 

191,669

 

 

 

146,974

 

Segment general and administrative expense:

 

 

 

 

 

 

 

 

Foundry

 

168,586

 

 

 

74,407

 

 

 

32,698

 

Biosecurity

 

56,353

 

 

 

31,039

 

 

 

4,813

 

Total segment general and administrative expense

 

224,939

 

 

 

105,446

 

 

 

37,511

 

Segment operating income (loss):

 

 

 

 

 

 

 

 

Foundry

 

(298,276

)

 

 

(122,052

)

 

 

(58,232

)

Biosecurity

 

71,534

 

 

 

9,084

 

 

 

(65,207

)

Total segment operating loss

 

(226,742

)

 

 

(112,968

)

 

 

(123,439

)

Operating expenses not allocated to segments:

 

 

 

 

 

 

 

 

Stock-based compensation (1)

 

1,940,920

 

 

 

1,687,607

 

 

 

476

 

Depreciation and amortization

 

42,552

 

 

 

28,185

 

 

 

13,112

 

Change in fair value of contingent consideration liability

 

(1,262

)

 

 

(293

)

 

 

 

Loss from operations

$

(2,208,952

)

 

$

(1,828,467

)

 

$

(137,027

)

(1) Includes $10.3 million and $5.0 million in employer payroll taxes for the years ended December 31, 2022 and 2021. Employer payroll taxes for the year ended December 31, 2020 were not material.

v3.22.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Summary of Loss Before Provision for Incomes Taxes

For the years ended December 31, 2022, 2021 and 2020, the loss before income taxes consisted of the following (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Domestic

 

$

(2,118,095

)

 

$

(1,837,497

)

 

$

(124,834

)

Foreign

 

 

(3,304

)

 

 

(625

)

 

 

 

Total

 

$

(2,121,399

)

 

$

(1,838,122

)

 

$

(124,834

)

Summary of Income Taxes Expenses Incurred During the Period

For the years ended December 31, 2022, 2021 and 2020, the Company incurred the following income tax (benefit) expense (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Current:

 

 

 

 

 

 

 

 

 

State

 

$

271

 

 

$

1

 

 

$

26

 

Foreign

 

 

159

 

 

 

 

 

 

 

Total current

 

 

430

 

 

 

1

 

 

 

26

 

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

 

(10,500

)

 

 

(413

)

 

 

581

 

State

 

 

(3,943

)

 

 

(912

)

 

 

1,282

 

Foreign

 

 

(1,014

)

 

 

(156

)

 

 

 

Total deferred

 

 

(15,457

)

 

 

(1,481

)

 

 

1,863

 

Income tax (benefit) expense

 

$

(15,027

)

 

$

(1,480

)

 

$

1,889

 

Summary of Reconciliation of the Statutory Corporate Income Tax Rate to the Effective Tax Rate

A reconciliation of income tax (benefit) expense computed at the statutory corporate income tax rate to the effective income tax rate for the years ended December 31, 2022, 2021 and 2020 is as follows:

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Federal income tax at statutory rate

 

 

21.0

%

 

 

21.0

%

 

 

21.0

%

State income tax

 

 

 

 

 

4.5

%

 

 

4.5

%

Change in valuation allowance

 

 

0.8

%

 

 

(23.9

)%

 

 

(31.3

)%

Stock-based compensation

 

 

(16.7

)%

 

 

(0.2

)%

 

 

 

Executive compensation

 

 

(5.3

)%

 

 

(2.0

)%

 

 

 

Tax credits

 

 

0.6

%

 

 

0.9

%

 

 

4.8

%

Other

 

 

0.3

%

 

 

(0.2

)%

 

 

(0.5

)%

Effective tax rate

 

 

0.7

%

 

 

0.1

%

 

 

(1.5

)%

 

Summary of Deferred Taxes Assets and Liabilities

The Company’s deferred tax assets and liabilities consist of the following (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

Deferred tax assets:

 

 

 

 

 

 

Net operating loss carryforwards

 

$

434,020

 

 

$

174,127

 

Tax credit carryforwards

 

 

74,336

 

 

 

37,455

 

Capitalized research and development costs

 

 

162,601

 

 

 

 

Accrued expenses

 

 

1,330

 

 

 

2,690

 

Deferred revenue

 

 

46,798

 

 

 

45,928

 

Stock-based compensation

 

 

124,126

 

 

 

318,049

 

Amortizable intangibles

 

 

6,010

 

 

 

3,834

 

Lease liabilities

 

 

113,665

 

 

 

 

Tenant allowance

 

 

 

 

 

2,927

 

Other

 

 

863

 

 

 

 

Deferred tax assets before valuation allowance

 

 

963,749

 

 

 

585,010

 

Valuation allowance

 

 

(833,086

)

 

 

(583,107

)

Deferred tax assets, net of valuation allowance

 

 

130,663

 

 

 

1,903

 

Deferred tax liabilities:

 

 

 

 

 

 

Amortizable intangibles

 

 

(23,583

)

 

 

(4,722

)

Property, plant, and equipment

 

 

(13,405

)

 

 

(830

)

Lease right-of-use assets

 

 

(103,357

)

 

 

 

Basis differences

 

 

 

 

 

(1,522

)

Deferred tax liabilities

 

 

(140,345

)

 

 

(7,074

)

Net deferred taxes

 

$

(9,682

)

 

$

(5,171

)

Summary of Deferred Tax Assets Valuation Allowance

Activity in the deferred tax assets valuation allowance is summarized as follows (in thousands):

 

 

 

Beginning of
Period

 

 

Additions

 

 

End of
Period

 

Deferred tax assets valuation allowance:

 

 

 

 

 

 

 

 

 

Year ended December 31, 2022

 

$

583,107

 

 

$

249,979

 

 

$

833,086

 

Year ended December 31, 2021

 

$

143,827

 

 

$

439,280

 

 

$

583,107

 

v3.22.4
Net Loss per Share (Tables)
12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted The calculation of basic and diluted earnings per common share are as follows (in thousands, except per share amounts):

 

 

 

Year ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Numerator:

 

 

 

 

 

 

 

 

 

Net loss attributable to Ginkgo Bioworks Holdings, Inc. stockholders, basic

 

$

(2,104,929

)

 

$

(1,830,047

)

 

$

(126,609

)

Change in fair value of warrant liabilities

 

 

 

 

 

58,615

 

 

 

 

Change in fair value of contingent consideration common shares liability

 

 

3,143

 

 

 

 

 

 

 

Net loss attributable to Ginkgo Bioworks Holdings, Inc. stockholders, diluted

 

$

(2,108,072

)

 

$

(1,888,662

)

 

$

(126,609

)

Denominator

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

 

1,679,061,465

 

 

 

1,359,848,803

 

 

 

1,274,766,915

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

Warrants

 

 

 

 

 

524,540

 

 

 

 

Contingent consideration common shares

 

 

777,384

 

 

 

 

 

 

 

Weighted average common shares outstanding, diluted

 

 

1,679,838,849

 

 

 

1,360,373,343

 

 

 

1,274,766,915

 

Basic net loss per share

 

$

(1.25

)

 

$

(1.35

)

 

$

(0.10

)

Diluted net loss per share

 

$

(1.25

)

 

$

(1.39

)

 

$

(0.10

)

 

Summary Of Anti-Dilutive Shares

The following potential common shares, presented based on amounts outstanding at each period end, were excluded from the calculation of diluted net loss per share attributable to Ginkgo Bioworks Holdings, Inc. common stockholders for the periods presented because including them would have been anti-dilutive:

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Warrants to purchase Class A common stock

 

 

51,824,895

 

 

 

 

 

 

1,020,187

 

Outstanding stock options

 

 

12,710,709

 

 

 

25,228,853

 

 

 

33,354,871

 

Unvested RSUs

 

 

134,436,442

 

 

 

168,321,952

 

 

 

124,932,207

 

Unvested RSAs

 

 

4,091

 

 

 

182,622

 

 

 

419,049

 

Ginkgo and Sponsor earnout shares (1)

 

 

156,780,675

 

 

 

160,995,237

 

 

 

 

 

 

 

355,756,812

 

 

 

354,728,664

 

 

 

159,726,314

 

(1) Represents earnout shares for which the vesting conditions have not been satisfied.

v3.22.4
Related Parties (Tables)
12 Months Ended
Dec. 31, 2022
Related Party Transactions [Abstract]  
Summary of Condensed Consolidated Balance Sheets

Related party transactions included in the consolidated balance sheet, excluding the Company’s investments and equity method investments, are summarized below (in thousands):

 

 

As of December 31,

 

 

 

2022

 

 

 

2021

 

Accounts receivable:

 

 

 

 

 

 

 

Joyn

 

$

 

 

 

 

$

5

 

Motif

 

 

 

 

 

 

 

3,020

 

Allonnia

 

 

140

 

 

 

 

 

849

 

Arcaea

 

 

335

 

 

 

 

724

 

Verb

 

 

361

 

 

 

 

 

Ayana

 

 

403

 

 

 

 

 

BiomEdit

 

 

288

 

 

 

 

 

Other equity investees

 

 

31

 

 

 

 

 

 

 

$

1,558

 

 

 

$

4,598

 

Deferred revenue, current and non-current:

 

 

 

 

 

 

 

Joyn

 

$

 

 

 

 

$

4,608

 

Motif

 

 

52,018

 

 

 

 

 

52,171

 

Genomatica

 

 

6,250

 

 

 

 

 

17,111

 

Allonnia

 

 

35,876

 

 

 

 

 

38,016

 

Arcaea

 

 

38,334

 

 

 

 

 

47,356

 

BiomEdit

 

 

8,144

 

 

 

 

 

Other equity investees

 

 

875

 

 

 

 

1,559

 

 

 

$

141,497

 

 

 

 

$

160,821

 

 

Summary of Condensed Consolidated Statements of Operations and Comprehensive Loss

Related party transactions included in the consolidated statements of operations and comprehensive loss, excluding the losses on the Company’s investments and equity method investments, are summarized below (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

 

2021

 

 

 

2020

 

Foundry revenue:

 

 

 

 

 

 

 

 

 

 

 

Joyn

 

$

2,896

 

 

 

 

$

5,254

 

 

 

 

$

7,273

 

Motif

 

 

1,937

 

 

 

 

 

20,224

 

 

 

 

 

20,798

 

Genomatica

 

 

10,861

 

 

 

 

 

12,868

 

 

 

 

 

9,431

 

Allonnia

 

 

4,332

 

 

 

 

 

5,126

 

 

 

 

 

4,960

 

Arcaea

 

 

13,490

 

 

 

 

 

3,676

 

 

 

 

 

 

Verb

 

 

2,359

 

 

 

 

 

 

 

 

 

Ayana

 

 

1,266

 

 

 

 

 

 

 

 

 

BiomEdit

 

 

1,016

 

 

 

 

 

 

 

 

 

Other equity investees

 

 

656

 

 

 

 

13

 

 

 

 

73

 

 

 

$

38,813

 

 

 

 

$

47,161

 

 

 

 

$

42,535

 

 

v3.22.4
Summary of Significant Accounting Policies - Additional Information (Details)
12 Months Ended
Dec. 31, 2022
USD ($)
Customer
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Customer
Jan. 01, 2022
USD ($)
Impairments of investments $ 0 $ 0 $ 0  
Equity Method Investments [1] 1,543,000 13,194,000    
Impairment long lived asset held for use 0 0 0  
Impairment of intangible assets finite lived 0 0 0  
Goodwill impairment loss 0 0 0  
Deferred Offering Costs 108,118,000      
Uncertain tax positions 0 0    
Accrued Interest And Penalties 0 0    
Operating lease right-of-use assets 400,762,000 0   $ 147,700,000
Total Lease liabilities 441,288,000     166,700,000
liabilities for deferred rent       8,500,000
Lease incentives       10,500,000
derecognized build-to-suit assets       17,800,000
derecognized the build-to-suit lease financing obligation       22,600,000
cumulative effect adjustment to accumulated deficit       $ 5,200,000
Additional Paid-in Capital [Member]        
Equity Method Investments $ 0 $ 0 $ 0  
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Major Customer Related Party One [Member]        
Concentration risk percentage   11.00% 27.00%  
Number of other customers over net sales ten percent benchmark | Customer     2  
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Major Customer Related Party Two [Member]        
Concentration risk percentage 11.00% 17.00% 12.00%  
Number of other customers over net sales ten percent benchmark | Customer 0      
[1] Equity method investments in Platform Ventures with a carrying value of zero as of December 31, 2022 and 2021 were excluded from the table above.
v3.22.4
Summary of Significant Accounting Policies - Schedule of Estimated Lives of Property and Equipment (Details)
12 Months Ended
Dec. 31, 2022
Furniture and Fixtures [Member]  
Property Plant And Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 7 years
Vehicles [Member]  
Property Plant And Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 5 years
Leasehold Improvements [Member]  
Property Plant And Equipment [Line Items]  
Property, Plant and Equipment, Estimated Useful Lives Shorter of useful life or remaining lease term
Minimum [Member] | Computer Equipment and Software [Member]  
Property Plant And Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 2 years
Minimum [Member] | Lab Equipment [Member]  
Property Plant And Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 1 year
Minimum [Member] | Buildings and Facilities [Member]  
Property Plant And Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 15 years
Maximum [Member] | Computer Equipment and Software [Member]  
Property Plant And Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 5 years
Maximum [Member] | Lab Equipment [Member]  
Property Plant And Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 5 years
Maximum [Member] | Buildings and Facilities [Member]  
Property Plant And Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 30 years
v3.22.4
Business Combination - Additional Information (Details)
1 Months Ended 12 Months Ended
Oct. 19, 2022
USD ($)
Oct. 17, 2022
USD ($)
ft²
Oct. 03, 2022
USD ($)
Apr. 04, 2022
USD ($)
shares
Apr. 01, 2022
USD ($)
$ / shares
shares
Sep. 16, 2021
USD ($)
$ / shares
shares
Jul. 01, 2021
Aug. 17, 2022
USD ($)
shares
Jun. 30, 2022
USD ($)
shares
Dec. 31, 2022
USD ($)
$ / shares
shares
Dec. 31, 2021
USD ($)
$ / shares
shares
Dec. 31, 2020
USD ($)
Nov. 15, 2021
$ / shares
shares
Business Acquisition [Line Items]                          
Shares exchange ratio           49.080452              
Common stock par or stated value per share | $ / shares           $ 0.0001       $ 0.0001 $ 0.0001    
Share price | $ / shares                         $ 12.50
Common Stock, Shares, Issued | shares         4,051,107         2,031,883,400 1,690,990,815    
Shares vested | shares       461,200                  
Shares forfeited       $ 584,246,000                  
Remaining restricted shares | shares       653,404                  
Estimated Fair Value         $ 1,900,000                
Contingent Consideration Classified as Equity, Fair Value Disclosure                   $ 800,000      
Business Combination, Contingent Consideration, Liability                   20,000,000.0      
Business Combination, Contingent Consideration, Asset         5,000,000.0                
Earnout shares vested and outstanding | shares                         38,800,000
Proceeds from capital contributions                   190,000 $ 161,000    
Common Stock, Value, Issued                   190,000 161,000    
Deferred Revenue                   141,497,000 160,821,000    
Severance Costs                   11,100,000      
Retention amount                   7,400,000      
Outstanding principal and accrued interest                   10,100,000      
Net loss                   (2,106,372,000) (1,836,642,000) $ (126,723,000)  
General and administrative expenses         $ 1,700,000         1,429,799,000 862,952,000 38,306,000  
Gain (loss) on equity method investments                   (43,761,000) $ (77,284,000) $ (396,000)  
Goodwill     $ 4,700,000             11,172,000      
Intangibles                   11,500,000      
Promissory notes                   $ 4,800,000      
Common Class A                          
Business Acquisition [Line Items]                          
Common stock par or stated value per share | $ / shares                   $ 0.0001      
Stock issued during period shares | shares           16,737,183       904,700,000      
Common Stock, Shares, Issued | shares         5,749,957         1,448,234,796 1,326,146,808    
Business acquire consideration         $ 17,000,000.0                
Minimum [Member]                          
Business Acquisition [Line Items]                          
Vesting period           20 days              
Maximum [Member]                          
Business Acquisition [Line Items]                          
Vesting period           30 days              
Restricted Stock [Member]                          
Business Acquisition [Line Items]                          
Contingent Consideration Of Restricted Stock | shares         1,698,850                
12.50 Then 25% [Member]                          
Business Acquisition [Line Items]                          
Share price | $ / shares                         $ 12.50
12.50 Then 25% [Member] | Common Class A                          
Business Acquisition [Line Items]                          
Share price | $ / shares           $ 12.50              
Share-based compensation arrangement by share-based payment award vesting rights, percentage           25.00%              
Tranche Two [Member] | Common Class A                          
Business Acquisition [Line Items]                          
Share price | $ / shares           $ 15.00              
Share-based compensation arrangement by share-based payment award vesting rights, percentage           25.00%              
17.50 then 25% [Member] | Common Class A                          
Business Acquisition [Line Items]                          
Share price | $ / shares           $ 17.50              
Share-based compensation arrangement by share-based payment award vesting rights, percentage           25.00%              
20.00 Then 25% [Member] | Common Class A                          
Business Acquisition [Line Items]                          
Share price | $ / shares           $ 20.00              
Share-based compensation arrangement by share-based payment award vesting rights, percentage           25.00%              
New Ginkgo Common Stock [Member]                          
Business Acquisition [Line Items]                          
Shares exchange ratio           49.080452              
Common stock converted into option to purchase common stock           49.080452              
Earn out consideration           $ 188,700,000              
Proceeds from capital contributions                   $ 327,289      
Common Stock, Value, Issued                   327,289      
General and administrative expenses                   $ 11,900,000      
New Ginkgo Common Stock [Member] | Common Class A                          
Business Acquisition [Line Items]                          
Shares forfeited | shares                   11,534,052      
SRNG [Member]                          
Business Acquisition [Line Items]                          
Issuance of Series E convertible preferred stock, net of issuance costs of $4,830           $ 15,800,000,000              
Shares issued price per share | $ / shares           $ 10              
Zymergen [Member]                          
Business Acquisition [Line Items]                          
Revenue                   $ 2,200,000      
Net loss                   26,000,000.0      
Equity issuance costs                   1,700      
Goodwill                   12,874,000      
Intangibles                   $ 18,600,000      
Zymergen [Member] | Common Class A                          
Business Acquisition [Line Items]                          
Shares issued price per share | $ / shares                   $ 2.44      
Common Stock, Shares, Issued | shares                   99,422,907      
Converted shares $ 917.9000                        
PIPE Investment [Member]                          
Business Acquisition [Line Items]                          
Stock issued during period shares | shares                   76,000,000      
PIPE Investment [Member] | Common Class A                          
Business Acquisition [Line Items]                          
Issuance of Series E convertible preferred stock, net of issuance costs of $4,830           $ 760,000,000.0              
Shares issued price per share | $ / shares           $ 10.00              
Stock issued during period shares | shares           76,000,000              
BitomeInc [Member]                          
Business Acquisition [Line Items]                          
Business Acquisition, Description of Acquired Entity                 a privately held company with an integrated metabolite monitoring platform that is expected to support accelerated product development timelines across Ginkgo's portfolio of cell programs. The Company accounted for the transaction as an asset acquisition as substantially all of the value received was concentrated in the intellectual property acquired.        
Business Acquisition, Name Of Acquired Entity                 Bitome, Inc. (“Bitome”)        
Repayment of outstanding convertible debt                 $ 100,000        
Change in fair value of contingent consideration liability                 $ 400,000        
BitomeInc [Member] | Common Class A                          
Business Acquisition [Line Items]                          
Common Stock, Shares, Issued | shares                 388,649        
Proceeds from capital contributions                 $ 1,200,000        
Common Stock, Value, Issued                 $ 1,200,000        
Baktus Inc [Member]                          
Business Acquisition [Line Items]                          
Business Acquisition, Description of Acquired Entity               a Delaware-based public benefit corporation.          
Business Acquisition, Name Of Acquired Entity               Baktus, Inc.          
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Asset               $ 11,100,000          
Business Combination, Cash Consideration Transferred               2,000,000.0          
Direct transaction costs               $ 700,000          
Tax withholdings related to net share settlement of equity awards | shares               258,781          
Payments To Acquire Intangible Assets               $ 11,200,000          
Employee Retention Payments               1,000,000.0          
Deferred Revenue               100,000          
Baktus Inc [Member] | Common Class A                          
Business Acquisition [Line Items]                          
Proceeds from capital contributions               8,400,000          
Common Stock, Value, Issued               $ 8,400,000          
Bayer Acquisition and Joint Venture [Member]                          
Business Acquisition [Line Items]                          
Area of Land | ft²   175,000                      
Proceeds from joint venture termination   $ 90,000,000.0                      
Estimated Fair Value                   $ 14,000,000.0      
Business Combination, Consideration Transferred, Convertible Promissory Notes                   10,000,000.0      
General and administrative expenses                   12,000,000.0      
Fair value of previously held equity interest in Joyn                   14,000,000      
Gain on notes receivable                   5,300,000      
Dissolution expense                   3,000,000.0      
Altar SAS [Member]                          
Business Acquisition [Line Items]                          
Business Combination, Contingent Consideration, Asset     $ 1,600,000                    
Business Acquisition, Description of Acquired Entity     a French biotechnology company with a proprietary adaptive evolution platform.                    
Business Acquisition, Name Of Acquired Entity     Altar SAS                    
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Asset     $ 12,000,000.0                    
Business Combination, Cash Consideration Transferred     2,800,000                    
General and administrative expenses     2,300,000                    
Liabilites assumed     600,000                    
Intangibles     8,400,000                    
Altar SAS [Member] | Common Class A                          
Business Acquisition [Line Items]                          
Proceeds from capital contributions     5,600,000                    
Common Stock, Value, Issued     5,600,000                    
Altar SAS [Member] | Restricted Stock [Member]                          
Business Acquisition [Line Items]                          
Proceeds from capital contributions     1,400,000                    
Common Stock, Value, Issued     $ 1,400,000                    
Circularis Biotechnologies, Inc. [Member]                          
Business Acquisition [Line Items]                          
Business Acquisition, Description of Acquired Entity     a biotechnology company with a proprietary circular RNA and promoter screening platform.                    
Business Acquisition, Name Of Acquired Entity     Circularis Biotechnologies, Inc.                    
Proceeds from capital contributions     $ 3,700,000                    
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Asset     18,600,000                    
Business Combination, Cash Consideration Transferred     4,300,000                    
Common Stock, Value, Issued     3,700,000                    
Direct transaction costs     400,000                    
Employee Retention Payments     2,500,000                    
Circularis Biotechnologies, Inc. [Member] | Common Class A                          
Business Acquisition [Line Items]                          
Proceeds from capital contributions     10,200,000                    
Common Stock, Value, Issued     $ 10,200,000                    
Dutch Dna Biotech BV [Member]                          
Business Acquisition [Line Items]                          
Business acquire consideration                   35,298,000      
Business Combination, Contingent Consideration, Liability                   20,000,000.0      
Business Acquisition, Percentage of Voting Interests Acquired             100.00%            
Business Acquisition, Description of Acquired Entity             a company based in the Netherlands with a proprietary platform technology focused on the development of fungal strains and fermentation processes for the production of proteins and organic acids.            
Business Acquisition, Name Of Acquired Entity             Dutch DNA Biotech B.V.            
General and administrative expenses                   600,000      
Dutch Dna Biotech BV [Member] | Common Class A                          
Business Acquisition [Line Items]                          
Fair value of previously held equity interest in Joyn                   15,087,000      
FGen [Member]                          
Business Acquisition [Line Items]                          
Contingent Consideration Classified as Equity, Fair Value Disclosure         $ 20,000.0                
Milestone Payments         25,000,000.0                
Business Combination, Contingent Consideration, Liability         $ 20,000,000.0                
Business Acquisition, Description of Acquired Entity         The $5.0 million payable to employees is accounted for separately from the business combination as post combination compensation expense to be recognized over the requisite service period. The fair value of the $20.0 million in contingent consideration on the acquisition date was determined using a scenario-based method.                
Post combination compensation expense         $ 5,000,000.0                
Basis         scenario-based method                
FGen [Member] | Common Class A                          
Business Acquisition [Line Items]                          
Business Acquisition, Share Price | $ / shares         $ 4.20                
Fair value of previously held equity interest in Joyn                   17,015,000      
FGen [Member] | Restricted Stock [Member]                          
Business Acquisition [Line Items]                          
Business Acquisition, Share Price | $ / shares         $ 4.20                
FGen AG [Member] | Restricted Stock [Member]                          
Business Acquisition [Line Items]                          
Contingent consideration         $ 3,800,000         $ 3,842,000      
v3.22.4
Business Combinations and Acquisitions - Summary of intangible assets (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2022
USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets estimated fair value $ 18,600
Estimated useful life 15 years
Database [Member]  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets estimated fair value $ 3,700
Estimated useful life 7 years
Developed Technology [Member]  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets estimated fair value $ 14,900
Estimated useful life 10 years
v3.22.4
Business Combinations and Acquisitions - Summary of supplemental pro forma financial information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Business Combinations [Abstract]    
Total revenue $ 489,670 $ 330,580
Net loss $ (2,366,005) $ (2,235,586)
v3.22.4
Business Combinations and Acquisitions - Summary of preliminary fair value of assets acquired (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Oct. 03, 2022
Business Combinations [Abstract]    
Property, plant and equipment $ 83,951  
Intangible assets 11,500  
Goodwill 11,172 $ 4,700
Deferred tax liability (2,679)  
Net assets acquired $ 103,944  
v3.22.4
Business Combinations and Acquisitions - Schedule of summarizes the acquisition date fair value of the consideration transferred for Zymergen (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Business Acquisition [Line Items]      
Less: Cash severance and retention bonuses incurred for the benefit of the combined company $ 11,100    
Consideration 19,912 $ 8,760 $ 0
Zymergen [Member]      
Business Acquisition [Line Items]      
Less: Cash severance and retention bonuses incurred for the benefit of the combined company (6,152)    
Consideration 231,750    
Zymergen [Member] | Common Class A [Member]      
Business Acquisition [Line Items]      
Fair value of Class A common stock 236,331    
Zymergen [Member] | New Ginkgo Common Stock [Member] | Restricted Stock [Member] | Common Class A [Member]      
Business Acquisition [Line Items]      
Fair value of replacement $ 1,571    
v3.22.4
Business Combinations and Acquisitions - Schedule of summarizes the acquisition date fair value of the consideration transferred for Zymergen (Parenthetical) (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2022
Apr. 01, 2022
Dec. 31, 2021
Business Acquisition [Line Items]      
Common stock, shares 2,031,883,400 4,051,107 1,690,990,815
Non-cash consideration paid for the acquisition of Zymergen $ 231,750    
Common Class A [Member]      
Business Acquisition [Line Items]      
Common stock, shares 1,448,234,796 5,749,957 1,326,146,808
Zymergen [Member]      
Business Acquisition [Line Items]      
Non-cash consideration paid for the acquisition of Zymergen $ 96,859,594    
Zymergen [Member] | Common Class A [Member]      
Business Acquisition [Line Items]      
Common stock, shares 99,422,907    
Share price $ 2.44    
v3.22.4
Business Combinations and Acquisitions - Summary of Net Proceeds from Business Combination (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2022
USD ($)
Business Acquisition [Line Items]  
Other offering costs $ (108,118)
Net proceeds from the Business Combination 1,509,629
SRNG [Member]  
Business Acquisition [Line Items]  
Cash and cash equivalents 857,747
PIPE Investment [Member]  
Business Acquisition [Line Items]  
Cash and cash equivalents $ 760,000
v3.22.4
Business Combinations and Acquisitions - Schedule of Business Combination Common Stock Shares Outstanding (Details) - shares
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Business Acquisition [Line Items]    
Common stock shares outstanding 1,891,975,964 1,611,392,152
Series B Preferred Stock [Member]    
Business Acquisition [Line Items]    
Convertible Preferred Stock, Shares Issued upon Conversion 203,346,152  
Series C Preferred Stock [Member]    
Business Acquisition [Line Items]    
Convertible Preferred Stock, Shares Issued upon Conversion 228,641,430  
Series D Preferred Stock [Member]    
Business Acquisition [Line Items]    
Convertible Preferred Stock, Shares Issued upon Conversion 302,464,716  
Series E Preferred Stock [Member]    
Business Acquisition [Line Items]    
Convertible Preferred Stock, Shares Issued upon Conversion 170,227,108  
Old Ginkgo Common Stock [Member]    
Business Acquisition [Line Items]    
Conversion of Stock, Shares Issued [1] 387,016,194  
New Ginkgo Common Stock [Member]    
Business Acquisition [Line Items]    
Common stock shares outstanding 1,485,061,236  
PIPE Investment [Member]    
Business Acquisition [Line Items]    
Common stock shares outstanding 193,365,636  
Issuance of Series E convertible preferred stock, net of issuance costs 76,000,000  
SRNG [Member]    
Business Acquisition [Line Items]    
Common stock shares outstanding 215,625,000  
Redemption Of Common Stock (86,725,312)  
Common Stock Shares Forfeited (11,534,052)  
SRNG [Member] | Common Stock [Member]    
Business Acquisition [Line Items]    
Common stock shares outstanding [2] 117,365,636  
[1] Excludes 283,396,094 shares of Class A and Class B common stock underlying rollover equity instruments (i.e., restricted stock units and stock options) and 259,440 shares of Class A and Class B common stock underlying unvested restricted stock awards.
[2] Includes 16,737,183 shares of Class A common stock, the Sponsor Earnout Shares, that are subject to forfeiture if certain earnout conditions are not met, as the shares are legally outstanding as of the Closing of the SRNG Business Combination.
v3.22.4
Business Combinations and Acquisitions - Schedule of Business Combination Common Stock Shares Outstanding (Parenthetical) (Details)
12 Months Ended
Dec. 31, 2022
shares
Common Class A  
Business Acquisition [Line Items]  
Sponsor Earn Out Shares Included In Common Stock 16,737,183
Common Class B | Restricted Stock Units (RSUs) [Member]  
Business Acquisition [Line Items]  
Common Stock Shares Excluded From Conversion 283,396,094
Common Class B | RSA [Member]  
Business Acquisition [Line Items]  
Common Stock Shares Excluded From Conversion 259,440
v3.22.4
Business Combinations and Acquisitions - Schedule of summary of the purchase price (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2022
USD ($)
Bayer Acquisition and Joint Venture [Member]  
Business Acquisition [Line Items]  
Cash $ 79,825
Bayer Acquisition and Joint Venture [Member]  
Business Acquisition [Line Items]  
Fair value of previously held equity interest in Joyn 14,000
Fair value of notes receivable from Joyn 10,119
Total purchase consideration $ 103,944
v3.22.4
Business Combinations and Acquisitions - Summary of Acquisition Date Fair Value of the Consideration Transferred (Details) - USD ($)
$ in Thousands
12 Months Ended
Apr. 01, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Oct. 03, 2022
Business Acquisition [Line Items]          
Contingent consideration   $ 3,143  
Total consideration   231,750      
Property and equipment   83,951      
Intangible assets   11,500      
Goodwill   11,172     $ 4,700
Deferred tax liability   2,679      
Common Class A [Member]          
Business Acquisition [Line Items]          
Total Dutch DNA consideration $ 17,000        
Zymergen [Member]          
Business Acquisition [Line Items]          
Total consideration   96,859,594      
Cash and cash equivalents   150,553      
Accounts receivable   980      
Inventory   1,166      
Prepaid expenses and other current assets   11,592      
Property and equipment   97,194      
Operating lease right-of-use assets   205,349      
Intangible assets   18,600      
Goodwill   12,874      
Other non-current assets   11,898      
Accounts payable   (13,907)      
Deferred revenue   8,189      
Accrued expenses and other current liabilities   55,917      
Operating lease liabilities   194,582      
Deferred tax liability   5,690      
Other non-current liabilities   (171)      
Net assets acquired   231,750      
FGen [Member] | Common Class A [Member]          
Business Acquisition [Line Items]          
Fair value of Class A common stock   17,015      
Dutch Dna Biotech BV [Member]          
Business Acquisition [Line Items]          
Contingent consideration   8,760      
Total Dutch DNA consideration   35,298      
Dutch Dna Biotech BV [Member] | Common Class A [Member]          
Business Acquisition [Line Items]          
Fair value of Class A common stock   15,087      
FGen AG [Member]          
Business Acquisition [Line Items]          
Total consideration   29,321      
FGen AG [Member] | Restricted Stock [Member]          
Business Acquisition [Line Items]          
Contingent consideration $ 3,800 3,842      
FGen AG [Member] | Milestones [Member]          
Business Acquisition [Line Items]          
Contingent consideration   8,464      
Dutch DNA Biotech B.V. [Member]          
Business Acquisition [Line Items]          
Cash   $ 11,451      
v3.22.4
Business Combinations and Acquisitions - Summary of preliminary Fair Values of Assets Acquired and Liabilities Assumed - (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Oct. 03, 2022
Business Acquisition [Line Items]    
Property and equipment $ 83,951  
Intangibles 11,500  
Goodwill 11,172 $ 4,700
Deferred tax liability 2,679  
Fgen [Member] | Preliminary Allocation [Member]    
Business Acquisition [Line Items]    
Cash 1,430  
Accounts receivable 144  
Other non-current assets 10  
Property and equipment 146  
Intangibles 21,100  
Goodwill 11,001  
Accounts payable and accrued expenses (29)  
Deferred revenue (104)  
Deferred tax liability (4,377)  
Net assets acquired 29,321  
Fgen [Member] | Measurement Period Adjustment [Member]    
Business Acquisition [Line Items]    
Cash 0  
Accounts receivable 0  
Other non-current assets 0  
Property and equipment (112)  
Intangibles 0  
Goodwill (386)  
Accounts payable and accrued expenses 0  
Deferred revenue 0  
Deferred tax liability 498  
Net assets acquired 0  
Fgen [Member] | Adjusted Allocation [Member]    
Business Acquisition [Line Items]    
Cash 1,430  
Accounts receivable 144  
Other non-current assets 10  
Property and equipment 34  
Intangibles 21,100  
Goodwill 10,615  
Accounts payable and accrued expenses (29)  
Deferred revenue (104)  
Deferred tax liability (3,879)  
Net assets acquired 29,321  
Dutch Dna Biotech BV [Member] | Preliminary Allocation [Member]    
Business Acquisition [Line Items]    
Cash 387  
Accounts receivable 149  
Prepaid expenses and other current assets 170  
Property and equipment 234  
Intangibles [1] 20,500  
Goodwill [2] 15,177  
Accounts payable (194)  
Accrued expenses and other current liabilities (137)  
Deferred tax liability  
Other non-current liabilities (988)  
Net assets acquired 35,298  
Dutch Dna Biotech BV [Member] | Measurement Period Adjustment [Member]    
Business Acquisition [Line Items]    
Cash [3] 0  
Accounts receivable [3] 0  
Prepaid expenses and other current assets [3] 0  
Property and equipment [3] 0  
Intangibles [1],[3] 0  
Goodwill [2],[3] 4,839  
Accounts payable [3] 0  
Accrued expenses and other current liabilities [3] (49)  
Deferred tax liability [3] (4,790)  
Other non-current liabilities [3] 0  
Net assets acquired [3] 0  
Dutch Dna Biotech BV [Member] | Adjusted Allocation [Member]    
Business Acquisition [Line Items]    
Cash 387  
Accounts receivable 149  
Prepaid expenses and other current assets 170  
Property and equipment 234  
Intangibles [1] 20,500  
Goodwill [2] 20,016  
Accounts payable (194)  
Accrued expenses and other current liabilities (186)  
Deferred tax liability (4,790)  
Other non-current liabilities (988)  
Net assets acquired $ 35,298  
[1] Estimated useful life of 15 years.
[2] Non-deductible for tax purposes.
[3] Represents adjustment related to deferred income taxes and the final determination of net-working capital as of the acquisition date.
v3.22.4
Business Combinations and Acquisitions - Summary of preliminary Fair Values of Assets Acquired and Liabilities Assumed (Parenthetical) (Details)
12 Months Ended
Dec. 31, 2022
Asset Acquisition [Abstract]  
Intangibles estimated useful life 15 years
v3.22.4
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Warrant liabilities $ 10,868 $ 135,838
Contingent consideration, included in other non-current liabilities 20,000  
Fair Value, Recurring [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total assets 1,154,337 1,525,464
Total liabilities 35,341 144,305
Fair Value, Recurring [Member] | Public Warrants [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Warrant liabilities 6,900 77,280
Fair Value, Recurring [Member] | Private Placement Warrants [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Warrant liabilities 3,968 58,558
Fair Value, Recurring [Member] | Other Noncurrent Liabilities [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Contingent consideration, included in other non-current liabilities 18,095 8,467
Fair Value, Recurring [Member] | Accrued expenses and other current liabilities [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Liabilities Subject to Compromise, Accounts Payable and Accrued Liabilities 6,378  
Fair Value, Recurring [Member] | Prepaid Expenses and Other Current Assets [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Receivables, Fair Value Disclosure 37,660 11,559
Synlogic, Inc. [Member] | Fair Value, Recurring [Member] | Warrant [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total included in investment [1] 1,937 6,166
Marketable Equity Securities [Member] | Fair Value, Recurring [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total included in investment [2] 25,714 25,676
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total assets 1,110,338 1,497,408
Total liabilities 6,900 77,280
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Public Warrants [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Warrant liabilities 6,900 77,280
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Private Placement Warrants [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Warrant liabilities 0 0
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Other Noncurrent Liabilities [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Contingent consideration, included in other non-current liabilities 0 0
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Accrued expenses and other current liabilities [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Liabilities Subject to Compromise, Accounts Payable and Accrued Liabilities 0  
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Prepaid Expenses and Other Current Assets [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Receivables, Fair Value Disclosure 0 0
Fair Value, Inputs, Level 1 [Member] | Synlogic, Inc. [Member] | Fair Value, Recurring [Member] | Warrant [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total included in investment [1] 0 0
Fair Value, Inputs, Level 1 [Member] | Marketable Equity Securities [Member] | Fair Value, Recurring [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total included in investment [2] 21,312 15,345
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total assets 36,339 16,497
Total liabilities 108 0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Public Warrants [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Warrant liabilities 0 0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Private Placement Warrants [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Warrant liabilities 108 0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Other Noncurrent Liabilities [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Contingent consideration, included in other non-current liabilities 0 0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Accrued expenses and other current liabilities [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Liabilities Subject to Compromise, Accounts Payable and Accrued Liabilities 0  
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Prepaid Expenses and Other Current Assets [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Receivables, Fair Value Disclosure 30,000 0
Fair Value, Inputs, Level 2 [Member] | Synlogic, Inc. [Member] | Fair Value, Recurring [Member] | Warrant [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total included in investment [1] 1,937 6,166
Fair Value, Inputs, Level 2 [Member] | Marketable Equity Securities [Member] | Fair Value, Recurring [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total included in investment [2] 4,402 10,331
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total assets 7,660 11,559
Total liabilities 28,333 67,025
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Public Warrants [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Warrant liabilities 0 0
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Private Placement Warrants [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Warrant liabilities 3,860 58,558
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Other Noncurrent Liabilities [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Contingent consideration, included in other non-current liabilities 18,095 8,467
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Accrued expenses and other current liabilities [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Liabilities Subject to Compromise, Accounts Payable and Accrued Liabilities 6,378  
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Prepaid Expenses and Other Current Assets [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Receivables, Fair Value Disclosure 7,660 11,559
Fair Value, Inputs, Level 3 [Member] | Synlogic, Inc. [Member] | Fair Value, Recurring [Member] | Warrant [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total included in investment [1] 0 0
Fair Value, Inputs, Level 3 [Member] | Marketable Equity Securities [Member] | Fair Value, Recurring [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total included in investment [2] 0 0
Money Market Funds [Member] | Fair Value, Recurring [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total included in cash and cash equivalents 1,089,026 1,482,063
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total included in cash and cash equivalents 1,089,026 1,482,063
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total included in cash and cash equivalents 0 0
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total included in cash and cash equivalents $ 0 $ 0
[1] The fair value of Synlogic, Inc. warrants is calculated as the quoted price of the underlying common stock, less the unpaid exercise price of the warrants.
[2] Marketable equity securities classified as Level 2 reflect a discount for lack of marketability due to regulatory sales restrictions, which lapsed on a portion of the shares held during the year ended December 31, 2022 and were reclassified as Level 1.
v3.22.4
Fair Value Measurements - Additional Information (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Jun. 30, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Fair Value Disclosure Asset And Liability Not Measured At Fair Value [Line Items]        
Volatility rate   85.50%    
Risk-free interest rate   3.13% 0.11%  
Risk adjusted rate   30.9    
Expected dividend yield   0.00%    
Years to maturity   10 months 17 days    
Contingent consideration, included in other non-current liabilities   $ 20.0    
Fair Value, Inputs, Level 3 [Member]        
Fair Value Disclosure Asset And Liability Not Measured At Fair Value [Line Items]        
Discount Rate   13.00%    
FGen AG [Member]        
Fair Value Disclosure Asset And Liability Not Measured At Fair Value [Line Items]        
Business Combination Consideration Liability Settled   $ 1.9    
Dutch DNA Biotech B.V. [Member]        
Fair Value Disclosure Asset And Liability Not Measured At Fair Value [Line Items]        
Payment for achievement of a technical development milestone   0.7    
Decrease in the fair value of the contingent consideration liability   0.7    
Contingent consideration, included in other non-current liabilities   20.0    
Circularis        
Fair Value Disclosure Asset And Liability Not Measured At Fair Value [Line Items]        
Payment for achievement of a technical development milestone   40.0    
Altar SAS [Member]        
Fair Value Disclosure Asset And Liability Not Measured At Fair Value [Line Items]        
Payment for achievement of a technical development milestone   2.5    
Promissory Note [Member]        
Fair Value Disclosure Asset And Liability Not Measured At Fair Value [Line Items]        
Fair value of promissory note   $ 1.9    
Discount Rate   15.00%    
Probabilities rate   50.00%    
Recovery rate on first lien debt   63.00%    
Notes Receivable [Member]        
Fair Value Disclosure Asset And Liability Not Measured At Fair Value [Line Items]        
Discount Rate   12.50%    
Genomatica Inc Preferred Stocks [Member]        
Fair Value Disclosure Asset And Liability Not Measured At Fair Value [Line Items]        
Asset Impairment Charges $ 10.1 $ 10.1 $ 0.0 $ 0.0
Minimum [Member] | Fair Value, Inputs, Level 3 [Member]        
Fair Value Disclosure Asset And Liability Not Measured At Fair Value [Line Items]        
Probabilities rate   18.00%    
Promissory Note Maturity   1 year    
Maximum [Member] | Fair Value, Inputs, Level 3 [Member]        
Fair Value Disclosure Asset And Liability Not Measured At Fair Value [Line Items]        
Probabilities rate   65.00%    
Promissory Note Maturity   2 years    
Access Bio [Member]        
Fair Value Disclosure Asset And Liability Not Measured At Fair Value [Line Items]        
Risk-free interest rate   0.30%    
Bolt Threads, Inc. [Member] | Senior Secured Note [Member]        
Fair Value Disclosure Asset And Liability Not Measured At Fair Value [Line Items]        
Notes receivable fair value recurring basis   $ 30.0    
v3.22.4
Fair Value Measurement - Summary of Fair Value Measurements Inputs (Detail) - Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2022
Dec. 31, 2021
Measurement Input, Exercise Price [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Fair value measurements inputs 11.50 11.50
Measurement Input, Share Price [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Fair value measurements inputs 1.69 8.31
Measurement Input, Price Volatility [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Fair value measurements inputs 71.5 58.7
Measurement Input, Expected Term [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Fair value measurements inputs 3.71 4.71
Measurement Input, Risk Free Interest Rate [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Fair value measurements inputs 4.11 1.25
v3.22.4
Fair Value Measurements - Summary of Change in the Fair Value of the Warrant Liabilities (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Schedule Of Changes In The Fair Value Of Warrant Liabilities [Line Items]    
Change in fair value [Extensible Enumeration] Change in fair value of warrant liabilities Change in fair value of warrant liabilities
Fair Value, Inputs, Level 3 [Member]    
Schedule Of Changes In The Fair Value Of Warrant Liabilities [Line Items]    
Beginning balance warrant liabilities $ 11,559 $ 15,566
Additions pursuant to the Business Combination 7,660 0
Proceeds from loans receivable (10,404) (304)
Conversion of promissory notes 0 (195)
Change in fair value 705 (3,508)
Write-off (1,860) 0
Ending balance warrant liabilities 7,660 11,559
Fair Value, Inputs, Level 3 [Member] | Contingent Consideration [Member]    
Schedule Of Changes In The Fair Value Of Warrant Liabilities [Line Items]    
Beginning balance warrant liabilities 8,467 0
Additions pursuant to the Business Combination 19,912 8,760
Change in fair value (1,262) (293)
Settlements and payments (2,644) 0
Ending balance warrant liabilities 24,473 8,467
Fair Value, Inputs, Level 3 [Member] | Private Placement Warrants [Member]    
Schedule Of Changes In The Fair Value Of Warrant Liabilities [Line Items]    
Beginning balance warrant liabilities 58,558 0
Additions pursuant to the Business Combination 0 90,263
Transfer to Level 2 (125) 0
Change in fair value (54,573) (31,705)
Ending balance warrant liabilities $ 3,860 $ 58,558
v3.22.4
Fair Value Measurements - Summary of recurring Level 3 fair value measurements of contingent consideration liabilities (Details) - Fair Value, Recurring [Member]
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Valuation Technique, Discounted Cash Flow [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Discount Rate 12.00% 9.00%
Valuation Technique, Discounted Cash Flow [Member] | Maximum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Discount Rate 13.11% 11.30%
Projected years of payments 2028 years 2037 years
Valuation Technique, Discounted Cash Flow [Member] | Minimum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Discount Rate 12.20% 10.70%
Projected years of payments 2025 years 2022 years
Probability-weighted present value [Member] | Maximum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Discount Rate 100.00% 80.00%
Probability-weighted present value [Member] | Minimum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Discount Rate 2.00% 10.00%
v3.22.4
Loans Receivable - Additional Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Debt Instrument [Line Items]      
Proceeds from public offering, net of issuance costs $ 99,303 $ 0 $ 0
v3.22.4
Investments and Equity Method Investments - Additional Information (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Jun. 30, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Apr. 01, 2022
Net Investment Income [Line Items]          
Common stock shares issued   2,031,883,400 1,690,990,815   4,051,107
Genomatica Inc Preferred Stocks [Member]          
Net Investment Income [Line Items]          
Impairment charges $ 10.1 $ 10.1 $ 0.0 $ 0.0  
v3.22.4
Investments and Equity Method Investments - Schedule of Investments and Equity Method Investments (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Net Investment Income [Line Items]    
Investments $ 112,188 $ 102,037
Equity Method Investments [1] 1,543 13,194
Genomatica, Inc. preferred stock [Member]    
Net Investment Income [Line Items]    
Investments 44,885 55,000
Synlogic, Inc. common stock [Member]    
Net Investment Income [Line Items]    
Investments 4,819 15,345
Synlogic, Inc. warrants [Member]    
Net Investment Income [Line Items]    
Investments 1,937 6,166
Marketable Equity Securities [Member]    
Net Investment Income [Line Items]    
Investments 20,895 10,331
Non-marketable equity securities [Member]    
Net Investment Income [Line Items]    
Investments 17,544 15,195
SAFEs [Member]    
Net Investment Income [Line Items]    
Investments 22,108 0
Joyn Bio, LLC [Member]    
Net Investment Income [Line Items]    
Equity Method Investments [1] 0 11,694
BiomEdit, LLC [Member]    
Net Investment Income [Line Items]    
Equity Method Investments [1] 369 0
Other    
Net Investment Income [Line Items]    
Equity Method Investments [1] $ 1,174 $ 1,500
[1] Equity method investments in Platform Ventures with a carrying value of zero as of December 31, 2022 and 2021 were excluded from the table above.
v3.22.4
Investments and Equity Method Investments - Schedule of Investments and Equity Method Investments (Parenthetical) (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Net Investment Income [Line Items]    
Equity Method Investments [1] $ 1,543 $ 13,194
Platform Ventures [Member]    
Net Investment Income [Line Items]    
Equity Method Investments $ 0 $ 0
[1] Equity method investments in Platform Ventures with a carrying value of zero as of December 31, 2022 and 2021 were excluded from the table above.
v3.22.4
Investments and Equity Method Investments - Schedule of (Losses) Gains on Investments and Equity Method Investments (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Net Investment Income [Line Items]      
(Loss) gain on investments: $ (53,335) $ (11,543) $ (3,733)
(Loss) gain on equity method investments: (43,761) (77,284) (396)
Synlogic, Inc. common stock [Member]      
Net Investment Income [Line Items]      
(Loss) gain on investments: (10,526) 1,649 (2,663)
Synlogic, Inc. warrants [Member]      
Net Investment Income [Line Items]      
(Loss) gain on investments: (4,230) 662 (1,070)
Genomatica, Inc. [Member]      
Net Investment Income [Line Items]      
(Loss) gain on investments: (10,115) 0 0
Marketable Equity Securities [Member]      
Net Investment Income [Line Items]      
(Loss) gain on investments: (28,269) (13,854) 0
Non Marketable Equity Securities [Member]      
Net Investment Income [Line Items]      
(Loss) gain on investments: (195) 0 0
Joyn Bio, LLC [Member]      
Net Investment Income [Line Items]      
(Loss) gain on equity method investments: [1] (3,043) (17,230) (396)
Allonnia, LLC [Member]      
Net Investment Income [Line Items]      
(Loss) gain on equity method investments: 0 (12,698) 0
Arcaea LLC [Member]      
Net Investment Income [Line Items]      
(Loss) gain on equity method investments: 0 (47,356)  
Verb Biotics LLC Member      
Net Investment Income [Line Items]      
(Loss) gain on equity method investments: (15,900) 0 0
BiomEdit LLC [Member]      
Net Investment Income [Line Items]      
(Loss) gain on equity method investments: (8,503) 0 0
Ayana, LLC [Member]      
Net Investment Income [Line Items]      
(Loss) gain on equity method investments: (15,989) 0 0
Other [Member]      
Net Investment Income [Line Items]      
(Loss) gain on equity method investments: $ (326) $ 0 $ 0
[1] Comprised of $14.0 million gain on the remeasurement of the Company's equity interest in Joyn at fair value as of the acquisition date offset by a $17.0 million loss on the equity method investment. The loss on equity method investment in Joyn in excess over the carrying value of zero of the equity method investment in Joyn during the year ended December 31, 2022 was recorded as a reduction in the convertible promissory notes receivable from Joyn (see Note 20).
v3.22.4
Investments and Equity Method Investments - Schedule of (Losses) Gains on Investments and Equity Method Investments (Parenthetical) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Net Investment Income [Line Items]    
Equity Method Investments [1] $ 1,543 $ 13,194
Joyn [Member]    
Net Investment Income [Line Items]    
Gain On Company's Equity Remeasurement 14,000  
Loss On Equity Method Investment 17,000  
Equity Method Investments $ 0  
[1] Equity method investments in Platform Ventures with a carrying value of zero as of December 31, 2022 and 2021 were excluded from the table above.
v3.22.4
Variable Interest Entities - Additional Information (Details) - USD ($)
$ in Thousands
1 Months Ended 12 Months Ended
Sep. 30, 2021
Mar. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Variable Interest Entity [Line Items]            
Gain on deconsolidation of subsidiaries     $ 31,889 $ 0 $ 0  
(Loss) gain on equity method investments:     (43,761) (77,284) (396)  
Cash and cash equivalents     1,315,792 1,550,004 380,801 $ 495,287
Prepaid expenses and other current assets     47,458 33,537    
Current liabilities     172,962 134,761    
Liabilities     803,044 503,611    
Net loss     (2,106,372) (1,836,642) (126,723)  
Loss attributable to non-controlling interest     (1,443) (6,595) (114)  
Consideration     19,912 8,760 0  
Non-controlling interest     0 62,014    
Series A Preferred Stock            
Variable Interest Entity [Line Items]            
Consideration   $ 19,500   $ 57,100    
Share Sold   1,755,000        
Ayana Bio Llc            
Variable Interest Entity [Line Items]            
Equity method investment     16,000      
Company to Provide Further Financial Support     0      
Ayana Bio Llc | Series A Preferred Stock            
Variable Interest Entity [Line Items]            
Consideration $ 30,000          
Share Sold 9,000,000          
Ayana Bio Llc | License            
Variable Interest Entity [Line Items]            
Common units       9,000,000    
Verb Biotics Llc            
Variable Interest Entity [Line Items]            
Equity method investment     15,900      
Ginkgo            
Variable Interest Entity [Line Items]            
Gain on deconsolidation of subsidiaries     31,900      
VIE Member            
Variable Interest Entity [Line Items]            
Equity method investment       $ 11,700    
Cash and cash equivalents       58,000    
Prepaid expenses and other current assets       700    
Current liabilities       600    
Maximum | Verb Biotics Llc            
Variable Interest Entity [Line Items]            
Carrying value of equity method investment     0      
In Process Research And Development | Ayana Bio Llc            
Variable Interest Entity [Line Items]            
(Loss) gain on equity method investments:     $ 31,900      
Parent            
Variable Interest Entity [Line Items]            
Equity interest     70.00%      
Controls of Board of Directors     100.00%      
Noncontrolling Interest [Member]            
Variable Interest Entity [Line Items]            
Equity interest     30.00%      
Net loss     $ (1,443) $ (6,595) $ (114)  
Member Units | Convertible Promissory Notes            
Variable Interest Entity [Line Items]            
Financial support     $ 10,000      
v3.22.4
Variable Interest Entities - Summary of VIE assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash and cash equivalents $ 1,315,792 $ 1,550,004 $ 380,801 $ 495,287
Prepaid expenses and other current assets 47,458 33,537    
Equity Method Investments [1] 1,543 13,194    
Total assets 2,539,321 2,070,990    
Accounts payable 10,451 8,189    
Accrued expenses and other current liabilities 114,694 93,332    
Total liabilities $ 803,044 $ 503,611    
[1] Equity method investments in Platform Ventures with a carrying value of zero as of December 31, 2022 and 2021 were excluded from the table above.
v3.22.4
Goodwill and Intangible Assets, net - Schedule of Goodwill (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]    
Beginning balance $ 21,312 $ 1,857
Goodwill acquired in acquisitions 39,712 15,177
Impact of foreign currency translation (266) (722)
Measurement period adjustments (548) 5,000
Ending balance $ 60,210 $ 21,312
v3.22.4
Goodwill and Intangible Assets, net - Schedule of Intangible Assets (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Acquired Finite Lived Intangible Assets [Line Items]    
Gross Carrying Value [1] $ 120,094  
Accumulated Amortization (9,053)  
Total 111,041  
Developed Technology [Member]    
Acquired Finite Lived Intangible Assets [Line Items]    
Gross Carrying Value [1] 115,824 $ 25,038
Accumulated Amortization (8,825) 3,396
Total $ 106,999 $ 21,642
Weighted Average Amortization Period 9 years 4 months 24 days 13 years 3 months 18 days
Database [Member]    
Acquired Finite Lived Intangible Assets [Line Items]    
Gross Carrying Value [1] $ 3,700  
Accumulated Amortization (107)  
Total $ 3,593  
Weighted Average Amortization Period 6 years 9 months 18 days  
Customer Relationships [Member]    
Acquired Finite Lived Intangible Assets [Line Items]    
Gross Carrying Value [1] $ 380  
Accumulated Amortization (71)  
Total $ 309  
Weighted Average Amortization Period 1 year 7 months 6 days  
Assembled Workforce [Member]    
Acquired Finite Lived Intangible Assets [Line Items]    
Gross Carrying Value [1] $ 190  
Accumulated Amortization (50)  
Total $ 140  
Weighted Average Amortization Period 1 year  
[1] Gross carrying value and accumulated amortization include the impact of cumulative foreign currency translation adjustments.
v3.22.4
Goodwill and Intangible Assets, net - Additional Information (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization of intangible assets $ 5.6 $ 1.2 $ 0.5
v3.22.4
Goodwill and Intangible Assets, net - Schedule of Estimated Future Amortization Expense (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2023 $ 15,769
2024 15,289
2025 15,165
2026 15,165
2027 12,158
Thereafter 37,495
Total $ 111,041
v3.22.4
Leases (Additional Information) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Operating Leases, Rent Expense   $ 17.7 $ 7.0
Operating Lease Rental Income Per Annum Under Sublease $ 3.5 $ 1.1 $ 0.4
Term of Sublease 5 years    
Undiscounted Commitments $ 420.9    
Maximum [Member]      
Term Of Operating Lease 14 years 4 months 24 days    
Minimum [Member]      
Term Of Operating Lease 13 months    
Equipment leases [Member] | Maximum [Member]      
Term Of Operating Lease 60 months    
Equipment leases [Member] | Minimum [Member]      
Term Of Operating Lease 12 months    
v3.22.4
Leases - Schedule of Components of Total Lease Cost (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]      
Operating lease cost $ 35,242    
Amortization of ROU assets 1,871 $ 0 $ 0
Interest on lease liabilities 104    
Finance Lease Cost, Total 1,975    
Variable lease cost 8,879    
Sublease income (5,190)    
Total lease cost $ 40,906    
v3.22.4
Leases - Schedule of Operating Leases Supplemental Cash Flow Information (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2022
USD ($)
Cash Paid For Amounts Included In Measurement Of Lease Liabilities [Abstract]  
Operating cash flows from finance leases $ 92
Operating cash flows from operating leases 13,587
Financing cash flows from finance leases 1,237
ROU asset obtained in exchange for new operating lease liabilities 79,984
ROU asset obtained in exchange for new finance lease liabilities $ 1,729
v3.22.4
Leases - Schedule of Supplemental Balance Sheet Information (Details)
Dec. 31, 2022
Leases [Abstract]  
Weighted average remaining lease term - operating leases (in years) 10 years 3 months 18 days
Weighted average remaining lease term - finance leases (in years) 2 years 3 months 18 days
Weighted average discount rate - operating leases 8.10%
Weighted average discount rate - finance leases 3.70%
v3.22.4
Leases - Schedule of Maturity of Operating and Finance Lease Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Jan. 01, 2022
Dec. 31, 2021
Leases [Abstract]      
2023 $ 58,111    
2024 62,125    
2025 62,300    
2026 57,300    
2027 58,010    
Thereafter 366,924    
Total undiscounted payments 664,770    
Less: imputed interest (223,482)    
Total Lease liabilities 441,288 $ 166,700  
Less: current portion of lease liability (28,032)    
Operating lease liabilities, non-current 413,256   $ 0
Finance lease 2023 1,374    
Finance lease 2024 1,079    
Finance lease 2025 452    
Finance lease 2026 19    
Finance lease 2027 0    
Finance lease Thereafter 0    
Total undiscounted payments finance lease 2,924    
Less: imputed interest (119)    
Total lease liability 2,805    
Less: current portion of lease liability $ (1,300)    
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Operating lease liabilities, non-current    
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Finance Lease, Liability, Noncurrent    
Lease financing obligation $ 1,505    
v3.22.4
Commitments and Contingencies - Additional Information (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Mar. 31, 2022
Loss Contingencies [Line Items]        
Proceeds from lease financing obligation $ 1,237      
Lease, interest expenses 19,082  
Research and development $ 1,052,643 $ 1,149,662 $ 159,767  
Twist Bioscience Corporation (Twist)        
Loss Contingencies [Line Items]        
Minimum purchase commitment in contract years       $ 58,000
Twist Bioscience Corporation (Twist) | Greater Than One Year And Not More Than Three Years [Member]        
Loss Contingencies [Line Items]        
Minimum purchase commitment in contract years       10,000
Twist Bioscience Corporation (Twist) | Greater Than Three Years And Not More Than Four Years [Member]        
Loss Contingencies [Line Items]        
Minimum purchase commitment in contract years       13,000
Twist Bioscience Corporation (Twist) | Greater Than Four Years And Not More Than Five Years [Member]        
Loss Contingencies [Line Items]        
Minimum purchase commitment in contract years       16,000
Twist Bioscience Corporation (Twist) | Greater Than Five Years And Not More Than Six Years [Member]        
Loss Contingencies [Line Items]        
Minimum purchase commitment in contract years       $ 19,000
v3.22.4
Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2023 $ 58,111
2024 62,125
2025 62,300
2026 57,300
2027 58,010
Thereafter 366,924
Total undiscounted payments $ 664,770
v3.22.4
Stockholders' Equity - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Nov. 15, 2022
Oct. 04, 2022
Sep. 16, 2021
Jul. 31, 2020
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Class Of Stock [Line Items]              
Proceeds from issuance of stock         $ 40,382 $ 15,087 $ 0
Preferred stock shares authorized         200,000,000 200,000,000  
Preferred stock par or stated value per share         $ 0.0001 $ 0.0001  
Preferred stock shares issued         0 0  
Common stock shares authorized         15,800,000,000 15,800,000,000  
Common stock par or stated value per share     $ 0.0001   $ 0.0001 $ 0.0001  
Conversion of Stock, Description         Each share of Class B common stock is convertible at any time at the option of the holder into one share of Class A common stock. Generally, shares of Class B common stock will convert automatically into Class A common stock upon the holder ceasing to be an Eligible Holder (i.e., director, employee, trust or legal entity of Ginkgo), unless otherwise determined by affirmative vote of a majority of independent directors of Ginkgo.    
Dividends         $ 0    
Shelf Registration Statement [Member]              
Class Of Stock [Line Items]              
Proceeds from issuance of stock   $ 500,000     $ 400,000    
Underwriting Agreement [Member]              
Class Of Stock [Line Items]              
Issuance of Series E convertible preferred stock, net of issuance costs 41,383,877            
Shares issued price per share $ 2.4164            
Stock issued during period shares 41,383,877            
Number of shares discount, percentage 9.00%            
Issuance of Additional Shares 6,207,581            
Underwriter option exercisable term 30 days            
Proceeds from Issuance of offering $ 98,900            
Common Class A              
Class Of Stock [Line Items]              
Common stock shares authorized         10,500,000,000 10,500,000,000  
Common stock par or stated value per share         $ 0.0001    
Common Stock, Voting Rights         one    
Issuance of Series E convertible preferred stock, net of issuance costs     16,737,183   904,700,000    
Stock issued during period shares     16,737,183   904,700,000    
Common Class B              
Class Of Stock [Line Items]              
Common stock shares authorized         4,500,000,000 4,500,000,000  
Common stock par or stated value per share         $ 0.0001    
Common Stock, Voting Rights         ten    
Common Class C              
Class Of Stock [Line Items]              
Common stock shares authorized         800,000,000 800,000,000  
Common stock par or stated value per share         $ 0.0001    
New Ginkgo Preferred Stock              
Class Of Stock [Line Items]              
Preferred stock shares authorized         200,000,000    
Preferred stock par or stated value per share         $ 0.0001    
Preferred stock shares issued         0    
Preferred stock shares outstanding         0    
Old Ginkgo Convertible Preferred Stock              
Class Of Stock [Line Items]              
Issuance of additional Series E preferred stock, shares         30,855,065    
Additional issuance price         $ 3.06    
Series E Preferred Stock [Member] | Investor              
Class Of Stock [Line Items]              
Amount received in cash       $ 94,400      
v3.22.4
Stockholders' Equity - Schedule of Capitalization (Details) - shares
Dec. 31, 2022
Apr. 01, 2022
Dec. 31, 2021
Common stock shares authorized 15,800,000,000   15,800,000,000
Common stock shares issued 2,031,883,400 4,051,107 1,690,990,815
Common stock shares outstanding 1,891,975,964   1,611,392,152
Common Class A [Member]      
Common stock shares authorized 10,500,000,000   10,500,000,000
Common stock shares issued 1,448,234,796 5,749,957 1,326,146,808
Common stock shares outstanding 1,337,498,554   1,273,976,963
Common Class B [Member]      
Common stock shares authorized 4,500,000,000   4,500,000,000
Common stock shares issued 383,648,604   364,844,007
Common stock shares outstanding 354,477,410   337,415,189
Common Class C [Member]      
Common stock shares authorized 800,000,000   800,000,000
Common stock shares issued 200,000,000   0
Common stock shares outstanding 200,000,000   0
v3.22.4
Stockholders' Equity - Schedule of Common Stock Reserved for Future Issuances (Detail)
Dec. 31, 2022
shares
Class Of Stock [Line Items]  
Total common stock reserved for future issuances 411,860,812 [1]
Warrants [Member]  
Class Of Stock [Line Items]  
Total common stock reserved for future issuances 51,824,895
2021 Incentive Award Plan [Member]  
Class Of Stock [Line Items]  
Total common stock reserved for future issuances 185,532,349
2021 Employee Stock Purchase Plan [Member]  
Class Of Stock [Line Items]  
Total common stock reserved for future issuances 20,000,000
2022 Inducement Plan [Member]  
Class Of Stock [Line Items]  
Total common stock reserved for future issuances 7,161,125
Employee Stock Option [Member]  
Class Of Stock [Line Items]  
Total common stock reserved for future issuances 12,906,001
Restricted Stock Units (RSUs) [Member]  
Class Of Stock [Line Items]  
Total common stock reserved for future issuances 134,436,442
[1] Excludes unvested earnout shares which are restricted shares issued to equity holders of Old Ginkgo as part of the SRNG Business Combination (Note 3) and are recorded in equity as shares outstanding upon satisfying the vesting conditions.
v3.22.4
Convertible Promissory Notes - Additional Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Short-Term Debt [Line Items]      
Gross proceeds $ 0 $ 195 $ 0
Conversion of convertible promissory notes to preferred stock 0 195 0
Other (expense) income 87,553 $ (9,655) $ 12,193
Promissory Note, Principal Balance $ 4,800    
v3.22.4
Warrant Liabilities - Additional Information (Detail) - USD ($)
12 Months Ended
Feb. 26, 2021
Dec. 31, 2022
Dec. 31, 2021
Nov. 15, 2021
Class Of Warrant Or Right [Line Items]        
Term of warrants   5 years    
Share price       $ 12.50
Number of trading days to determine call of warrant redemption   30 days    
Warrant liabilities   $ 10,868,000 $ 135,838,000  
Common Class A        
Class Of Warrant Or Right [Line Items]        
Exercise price of warrants or rights   $ 11.50    
Shares purchased   1    
Common Class A | Minimum [Member] | Redemption of Warrants When Price Equals or Exceeds $18.00 [Member]        
Class Of Warrant Or Right [Line Items]        
Share price   $ 18.00    
Public Warrants        
Class Of Warrant Or Right [Line Items]        
Warrants Issued $ 34,499,925      
Warrant redemption price (in dollars per share)   $ 0.01    
Warrant minimum days for prior written notice of redemption   30 days    
Number of trading days to determine call of warrant redemption   20 days    
Public Warrants | Common Class A        
Class Of Warrant Or Right [Line Items]        
Exercise price of warrants or rights   $ 0    
Warrant liabilities   $ 6,900,000    
Shares purchased   35.0    
Private Placement Warrants        
Class Of Warrant Or Right [Line Items]        
Warrants Issued $ 17,325,000      
Private Placement Warrants | Common Class A        
Class Of Warrant Or Right [Line Items]        
Warrant liabilities   $ 4,000,000.0    
Shares purchased   16.8    
v3.22.4
Supplemental Balance Sheet Information - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract]        
Cash and cash equivalents $ 1,315,792 $ 1,550,004 $ 380,801 $ 495,287
Restricted cash included in prepaid expenses and other current assets [1] 8,221 0 0  
Restricted cash included in other non-current assets [1] 45,568 42,924 5,076  
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Total $ 1,369,581 $ 1,592,928 $ 385,877 $ 498,510
[1] Includes cash balances collateralizing letters of credit associated with the Company’s facility leases and a customer prepayment requiring segregation and restrictions in its use in accordance with the customer agreement.
v3.22.4
Supplemental Balance Sheet Information - Summary of Prepaid Expenses and Other Current Assets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Prepaid Expense and Other Assets, Current [Abstract]      
Prepaid expenses $ 18,145 $ 9,739  
Prepaid insurance 16,960 9,199  
Prepaid inventory 0 144  
Notes receivable 0 11,559  
Other receivables 1,561 2,198  
Security deposits 2,084 0  
Restricted cash [1] 8,221 0 $ 0
Other current assets 487 698  
Prepaid expenses and other current assets $ 47,458 $ 33,537  
[1] Includes cash balances collateralizing letters of credit associated with the Company’s facility leases and a customer prepayment requiring segregation and restrictions in its use in accordance with the customer agreement.
v3.22.4
Supplemental Balance Sheet Information - Schedule of Inventory, Net (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Inventory Disclosure [Abstract]    
Finished goods $ 6,556 $ 3,264
Raw materials 1,590 64
Work in process 0 50
Less: Inventory reserve (3,782) (16)
Inventory, net $ 4,364 $ 3,362
v3.22.4
Supplemental Balance Sheet Information - Summary of Property and Equipment, Net (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Property Plant And Equipment [Line Items]    
Total property, plant, and equipment $ 407,529 $ 206,822
Less: Accumulated depreciation and amortization (92,756) (61,052)
Property, plant, and equipment, net 314,773 145,770
Facilities [Member]    
Property Plant And Equipment [Line Items]    
Total property, plant, and equipment 46,019 12,762
Less: Accumulated depreciation and amortization   (1,100)
Furniture and Fixtures [Member]    
Property Plant And Equipment [Line Items]    
Total property, plant, and equipment 8,206 4,617
Lab Equipment [Member]    
Property Plant And Equipment [Line Items]    
Total property, plant, and equipment 183,292 113,963
Computer Equipment and Software [Member]    
Property Plant And Equipment [Line Items]    
Total property, plant, and equipment 15,219 10,129
Leasehold Improvements [Member]    
Property Plant And Equipment [Line Items]    
Total property, plant, and equipment 125,307 55,033
Construction in Progress [Member]    
Property Plant And Equipment [Line Items]    
Total property, plant, and equipment 23,426 10,278
Land [Member]    
Property Plant And Equipment [Line Items]    
Total property, plant, and equipment 6,060 0
Vehicles [Member]    
Property Plant And Equipment [Line Items]    
Total property, plant, and equipment $ 0 $ 40
v3.22.4
Supplemental Balance Sheet Information - Additional Information (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Property Plant And Equipment [Line Items]      
Depreciation $ 36,900 $ 26,900 $ 12,600
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment $ 92,756 61,052  
Assets Held under Capital Leases      
Property Plant And Equipment [Line Items]      
Capital leased assets, gross   4,100  
Lab Equipment [Member]      
Property Plant And Equipment [Line Items]      
Capital leased assets, accumulated depreciation   2,100  
Facilities [Member]      
Property Plant And Equipment [Line Items]      
Build-to-suit assets   12,800  
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment   1,100  
Construction in Progress [Member]      
Property Plant And Equipment [Line Items]      
Build-to-suit assets   $ 6,100  
v3.22.4
Supplemental Balance Sheet Information - Schedule of Other Non-Current Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Other Noncurrent Asset [Abstract]    
Restricted cash noncurrent $ 45,568 $ 42,924
Notes receivable 37,660 0
Finance lease right-of-use assets, net $ 3,256 $ 0
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other Assets, Noncurrent, Total Other Assets, Noncurrent, Total
Other assets $ 2,241 $ 1,066
Other Assets, Noncurrent, Total $ 88,725 $ 43,990
v3.22.4
Supplemental Balance Sheet Information - Schedule of Accrued Expenses and Other Current Liabilities (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Accounts Payable and Accrued Liabilities, Current [Abstract]    
Employee compensation and benefits $ 19,441 $ 6,257
Professional fees 12,178 14,871
Property and equipment 11,624 991
Cost of Biosecurity product revenue accruals 12 4,565
Cost of Biosecurity service revenue accruals 15,401 28,726
Inventory related accruals 1,048 3,538
Lab supplies 3,434 560
External research and development expenses 1,844 11
Contingent consideration liability 6,378 0
Liability classified stock-based compensation 0 26,612
Finance lease liabilities 1,300 747
Operating lease liabilities 28,032 0
Other current liabilities 14,002 6,454
Accrued expenses and other current liabilities $ 114,694 $ 93,332
v3.22.4
Stock-Based Compensation - Additional Information (Detail) - USD ($)
1 Months Ended 3 Months Ended 12 Months Ended
Nov. 17, 2021
Nov. 16, 2021
Sep. 16, 2021
Sep. 16, 2021
Mar. 31, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Nov. 15, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                  
Total common stock reserved for future issuances [1]           411,860,812      
Aggregate intrinsic value of stock options exercised           $ 21,500,000 $ 91,000,000.0 $ 5,300,000  
Options, grants in period, weighted average grant date fair value           $ 1.92 $ 8.97    
Stock options expiration period           10 years      
Stock-based compensation           $ 1,930,641,000 $ 1,606,020,000 $ 476,000  
Share price                 $ 12.50
Number of shares, Granted           922,227      
Maximum [Member]                  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                  
Vesting period     30 days            
Minimum [Member]                  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                  
Vesting period     20 days            
Non-Employee Stock [Member]                  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                  
Cash payment in plan modification         $ 9,800,000        
Tranche One [Member]                  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                  
Share price                 $ 12.50
Earnout Shares [Member]                  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                  
Vesting period           5 years      
Unrecognized compensation expense           $ 21,200,000      
Unrecognized stock-based compensation recognition period           2 years      
Earnout Shares [Member] | Maximum [Member]                  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                  
Vesting period     30 days            
Earnout Shares [Member] | Minimum [Member]                  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                  
Vesting period     20 days            
Common Stock [Member] | Earnout Shares [Member] | Tranche One [Member]                  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                  
Share price     $ 12.50 $ 12.50          
Common Stock [Member] | Earnout Shares [Member] | Tranche Two [Member]                  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                  
Share price     15.00 15.00          
Common Stock [Member] | Earnout Shares [Member] | Tranche Three [Member]                  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                  
Share price     17.50 17.50          
Common Stock [Member] | Earnout Shares [Member] | Tranche Four [Member]                  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                  
Share price     $ 20.00 $ 20.00          
Restricted Stock Units (RSUs) [Member]                  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                  
Total common stock reserved for future issuances           134,436,442      
Options, grants in period, weighted average grant date fair value           $ 3.19 $ 13.53 $ 2.68  
Share-based payment award, Terms           RSAs granted under the 2014 Plan are subject to a service-based vesting condition and generally vest in equal monthly installments over four years. RSUs granted under the 2014 Plan are subject to two vesting conditions: (i) a service-based vesting condition that is generally met over four years with 25% of the shares vesting on the first anniversary of the grant date with monthly vesting thereafter, and (ii) a performance-based vesting condition that is met through a liquidity event in the form of either a change of control or an initial public offering (“the performance condition”). RSUs granted under the 2021 Plan are subject to a service-based vesting condition only that is generally met over four years with 25% of the shares vesting on the first anniversary of the grant date with monthly vesting thereafter.      
Stock-based compensation   $ 0       $ 1,678,400,000      
Share-based payment award, Plan modification terms           As a result of the SRNG Business Combination, on November 17, 2021 (“Modification Date”) the Board of Directors modified the vesting terms of RSUs granted under the 2014 Plan to allow 10% of the RSUs that met the service condition as of the closing of the SRNG Business Combination (the “10% RSUs”) to vest with respect to the performance condition, effective as of November 19, 2021, the date on which the Form S-8 registration statement covering such shares became effective. In addition, on November 17, 2021 the Board of Directors modified the vesting terms of the remaining RSUs granted under the 2014 Plan such that they will vest in full with respect to the performance condition on or before March 15, 2022 (the original service-based vesting condition is still applicable). As a result of these modifications, the performance condition for all RSUs granted under the 2014 Plan became probable of being met during the fourth quarter of 2021.      
Incremental compensation expense           $ 1,492,200,000      
Cash payment in plan modification         $ 3,200,000 $ 76,500,000      
Share-based payment award vesting rights, Description           RSUs granted to non-employee directors by adding a cash settlement feature to the awards which allowed the non-employee directors to elect to settle in cash up to 50% of their RSUs that were vested with respect to the service condition on or prior to December 31, 2021 (the “50% RSUs”). The director RSUs were subject to the same performance condition as all other RSUs granted under the 2014 Plan. In the fourth quarter of 2021, all directors elected to cash settle the 50% RSUs. As a result, the 50% RSUs are classified as liability awards and the liability is measured at fair value at the reporting date.      
No of awards granted           111,541,317      
Fair value of vested stock options           $ 1,783,800,000 $ 1,149,500,000    
Number of share, Vested           136,182,791   0  
Unrecognized compensation expense           $ 462,200,000      
Unrecognized stock-based compensation recognition period           3 years 2 months 12 days      
Restricted Stock Units (RSUs) [Member] | Accrued Expenses and Other Current Liabilities [Member]                  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                  
Fair value of liability             $ 26,600,000    
RSA [Member]                  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                  
No of awards granted           0 0 0  
Fair value of vested stock options           $ 400,000 $ 500,000 $ 500,000  
Number of share, Vested           178,531      
Unrecognized compensation expense           $ 100,000      
Unrecognized stock-based compensation recognition period           2 months 12 days      
Employee Stock Option [Member]                  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                  
Total common stock reserved for future issuances           12,906,001      
Unrecognized compensation expense           $ 1,200,000      
Unrecognized stock-based compensation recognition period           1 year 4 months 24 days      
Stock options [Member]                  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                  
Number of shares, Granted           0 0    
Earnout RSUs [Member]                  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                  
Stock-based compensation           $ 193,300,000      
Incremental compensation expense $ 173,500,000                
Fair value of vested stock options           $ 52,000.0      
Number of share, Vested           3,899,088      
2021 Incentive Award Plan [Member]                  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                  
Shares issued in period           200,440,957      
Total common stock reserved for future issuances           185,532,349      
Share-based payment award, percentage of outstanding stock       4.00%          
Number of shares to be issued pursuant to awards granted     200,000,000 200,000,000          
2021 Employee Stock Purchase Plan [Member]                  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                  
Total common stock reserved for future issuances           20,000,000      
Share-based payment award, percentage of outstanding stock       1.00%          
Number of shares authorised     20,000,000 20,000,000          
Percentage of non-participation of combined voting power or value of all classes of stock     5.00%            
Number of shares to be issued pursuant to awards granted     100,000,000 100,000,000          
2022 Inducement Plan Member                  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                  
Total common stock reserved for future issuances           7,161,125      
2022 Inducement Plan Member | Common Stock [Member]                  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                  
Total common stock reserved for future issuances           25,000,000.0      
[1] Excludes unvested earnout shares which are restricted shares issued to equity holders of Old Ginkgo as part of the SRNG Business Combination (Note 3) and are recorded in equity as shares outstanding upon satisfying the vesting conditions.
v3.22.4
Stock-Based Compensation - Summary of Stock-based Compensation (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Stock-based compensation expense $ 1,930,641 $ 1,682,565 $ 476
Research and Development Expense [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Stock-based compensation expense 731,996 926,730 79
General and Administrative [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Stock-based compensation expense $ 1,198,645 $ 755,835 $ 397
v3.22.4
Stock-Based Compensation - Summary of Stock Option Activity (Details)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2022
USD ($)
$ / shares
shares
Share-Based Payment Arrangement [Abstract]  
Number of shares , Beginning balance | shares 22,454,663
Number of shares, Granted | shares 922,227
Number of shares, Exercised | shares (12,876,227)
Number of shares, Ending balance | shares 10,500,663
Number of shares, Exercisable | shares 9,543,914
Weighted average exercise price per share, Beginning balance | $ / shares $ 0.05
Weighted average exercise price per share, Granted | $ / shares 2.87
Weighted-average exercise price per share, Exercised | $ / shares 0.02
Weighted average exercise price per share, Ending balance | $ / shares 0.34
Weighted-average exercise price per share, Exercisable | $ / shares $ 0.06
Weighted-average remaining contractual term, Outstanding 2 years 21 days
Weighted-average remaining contractual term, Exercisable 1 year 3 months 21 days
Aggregate intrinsic value, Outstanding | $ $ 15,902 [1]
Aggregate intrinsic value, Exercisable | $ $ 15,902 [1]
[1] The aggregate intrinsic value is calculated as the difference between the Company's closing stock price on the last trading day of the year and the exercise prices, multiplied by the number of in-the-money stock options.
v3.22.4
Stock-Based Compensation - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Share-Based Payment Arrangement [Abstract]    
Risk-free interest rate 3.13% 0.11%
Expected dividend yield $ 0 $ 0
Expected volatility 76.90% 88.60%
Expected term 5 years 7 months 6 days 11 months 15 days
v3.22.4
Stock-Based Compensation - Summary of RSU and RSA Activity (Details) - $ / shares
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Restricted Stock Units (RSUs) [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]      
Number of shares, Nonvested at beginning of period (in shares) 168,321,952    
Number of share, Granted 111,541,317    
Number of share, Vested (136,182,791)   0
Number of share, Forfeited (9,244,036)    
Number of shares, Nonvested at end of period (in shares) 134,436,442 168,321,952  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]      
Weighted average grant date fair value, Nonvested at beginning of period $ 13.58    
Weighted average grant date fair value, Granted 3.19    
Weighted average grant date fair value, Vested 13.10    
Weighted average grant date fair value, Forfeited 7.79    
Weighted average grant date fair value, Nonvested at end of period $ 5.84 $ 13.58  
RSA [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]      
Number of shares, Nonvested at beginning of period (in shares) 182,622    
Number of share, Granted 0 0 0
Number of share, Vested (178,531)    
Number of shares, Nonvested at end of period (in shares) 4,091 182,622  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]      
Weighted average grant date fair value, Nonvested at beginning of period $ 1.99    
Weighted average grant date fair value, Vested 1.99    
Weighted average grant date fair value, Nonvested at end of period $ 1.99 $ 1.99  
v3.22.4
Stock-Based Compensation - Schedule of Assumptions Used to Estimate Fair Value, Earnout RSUs (Details)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Risk-free interest rate 3.13% 0.11%
Expected volatility 76.90% 88.60%
Expected term 5 years 7 months 6 days 11 months 15 days
Expected dividend yield 0.00%  
Earnout RSUs [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Expected dividend yield 0.00%  
Earnout RSUs [Member] | Minimum [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Risk-free interest rate 0.84%  
Expected volatility 53.10%  
Expected term 4 years 9 months 29 days  
Earnout RSUs [Member] | Maximum [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Risk-free interest rate 1.21%  
Expected volatility 81.00%  
Expected term 5 years  
v3.22.4
Stock-Based Compensation - Summary of Activity For Earnout RSA (Details) - Earnout RSUs [Member]
12 Months Ended
Dec. 31, 2022
$ / shares
shares
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Number of shares, Nonvested at beginning of period (in shares) | shares 27,863,125
Number of share, Vested | shares (3,899,088)
Number of share, Forfeited | shares (444,075)
Number of shares, Nonvested at end of period (in shares) | shares 23,519,962
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]  
Weighted average grant date fair value, Nonvested at beginning of period | $ / shares $ 12.87
Weighted average grant date fair value, Vested | $ / shares 13.33
Weighted average grant date fair value, Forfeited | $ / shares 12.92
Weighted average grant date fair value, Nonvested at end of period | $ / shares $ 12.79
v3.22.4
Revenue Recognition - Disaggregation of Revenue (Details)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Disaggregation Of Revenue [Line Items]      
Total Foundry revenue 100.00% 100.00% 100.00%
Food And Nutrition      
Disaggregation Of Revenue [Line Items]      
Total Foundry revenue 9.00% 25.00% 35.00%
Industrial And Environment      
Disaggregation Of Revenue [Line Items]      
Total Foundry revenue 12.00% 16.00% 29.00%
Agriculture      
Disaggregation Of Revenue [Line Items]      
Total Foundry revenue 8.00% 8.00% 13.00%
Customer And Technology      
Disaggregation Of Revenue [Line Items]      
Total Foundry revenue 45.00% 36.00% 12.00%
Pharma and Biotech      
Disaggregation Of Revenue [Line Items]      
Total Foundry revenue 22.00% 8.00% 2.00%
Government and Defense      
Disaggregation Of Revenue [Line Items]      
Total Foundry revenue 4.00% 7.00% 9.00%
v3.22.4
Revenue Recognition - Additional Information (Details) - USD ($)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Disaggregation of Revenue [Line Items]      
Contract asset $ 0 $ 0  
Contract with Customer, Liability, Revenue Recognized 45,600,000 28,800,000  
Deferred Revenue 141,497,000 160,821,000  
Cumulative catch-up adjustment to revenue $ 10,000,000.0 6,400,000  
Contract Liabilities   $ 189,200,000 $ 128,500,000
UNITED STATES | Customer Concentration Risk [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 88.00% 86.00% 88.00%
v3.22.4
Revenue Recognition - Additional Information 1 (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenue, Remaining Performance Obligation, Amount $ 123.5 $ 21.1
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenue remaining performance obligation expected timing of satisfaction year 2023  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenue remaining performance obligation expected timing of satisfaction year 2025  
v3.22.4
Segment Information - Schedule of Segment Reporting Information, by Segment (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Segment research and development expense:      
Research and development $ 1,052,643 $ 1,149,662 $ 159,767
Operating expenses not allocated to segments:      
Stock-based compensation 1,930,641 1,606,020 476
Depreciation and amortization 42,552 29,076 13,864
Loss from operations (2,208,952) (1,828,467) (137,027)
CODM [Member}      
Revenue:      
Revenue 477,706 313,837 76,657
Segment research and development expense:      
Research and development 275,293 191,669 146,974
Segment general and administrative expense:      
Selling, General and Administrative Expense 224,939 105,446 37,511
Segment operating income (loss):      
Total segment operating loss (226,742) (112,968) (123,439)
Operating expenses not allocated to segments:      
Stock-based compensation [1] 1,940,920 1,687,607 476
Depreciation and amortization 42,552 28,185 13,112
Change in fair value of contingent consideration liability (1,262) (293)
Biosecurity | CODM [Member}      
Revenue:      
Revenue 334,040 200,848 17,436
Segment cost of revenue:      
Cost of revenue 204,216 129,690 15,611
Segment research and development expense:      
Research and development 1,937 31,035 62,219
Segment general and administrative expense:      
Selling, General and Administrative Expense 56,353 31,039 4,813
Segment operating income (loss):      
Total segment operating loss 71,534 9,084 (65,207)
Foundry Revenue [Member] | CODM [Member}      
Revenue:      
Revenue 143,666 112,989 59,221
Segment research and development expense:      
Research and development 273,356 160,634 84,755
Segment general and administrative expense:      
Selling, General and Administrative Expense 168,586 74,407 32,698
Segment operating income (loss):      
Total segment operating loss (298,276) (122,052) (58,232)
Operating expenses not allocated to segments:      
Loss from operations $ (2,208,952) $ (1,828,467) $ (137,027)
[1]

(1) Includes $10.3 million and $5.0 million in employer payroll taxes for the years ended December 31, 2022 and 2021. Employer payroll taxes for the year ended December 31, 2020 were not material.

v3.22.4
Segment Information - Schedule of Segment Reporting Information, by Segment (Parenthetical) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Segment Reporting [Abstract]    
Employer payroll taxes $ 10.3 $ 5.0
v3.22.4
Significant Collaboration Transactions - Additional Information (Details)
1 Months Ended 5 Months Ended 12 Months Ended
Apr. 30, 2022
shares
Jun. 01, 2019
USD ($)
$ / shares
shares
Apr. 30, 2022
USD ($)
shares
Nov. 15, 2021
USD ($)
Mar. 31, 2021
USD ($)
shares
Dec. 31, 2019
USD ($)
shares
Jun. 30, 2019
$ / shares
shares
Sep. 30, 2017
USD ($)
Dec. 31, 2017
USD ($)
Dec. 31, 2022
USD ($)
Obligations
shares
Dec. 31, 2021
USD ($)
Obligations
shares
Dec. 31, 2020
USD ($)
shares
Dec. 31, 2019
USD ($)
shares
Dec. 31, 2018
USD ($)
Obligations
shares
Jul. 31, 2019
USD ($)
Dec. 01, 2018
USD ($)
Sep. 30, 2018
USD ($)
Business Acquisition [Line Items]                                  
Consideration                   $ 19,912,000 $ 8,760,000 $ 0          
Number of additional common units received | shares                   7,245,000              
(Loss) gain on equity method investments:                   $ (43,761,000) $ (77,284,000) (396,000)          
Number Of Allocated Performance Obligations | Obligations                     10            
Revenue remaining performance obligation amount                   123,500,000 $ 21,100,000            
Deferred Revenue                   141,497,000 160,821,000            
Equity Method Investments [1]                   1,543,000 13,194,000            
Deferred Revenue, Balance                   141,497,000 160,821,000            
Promissory Note, Principal Balance                   4,800,000              
Amyris Inc | Amyris Collaboration Agreement                                  
Business Acquisition [Line Items]                                  
Due from Related Parties                 $ 800,000                
Promissory Note | Amyris Inc                                  
Business Acquisition [Line Items]                                  
Upfront payment received       $ 22,800,000                          
Debt instrument, face amount                   $ 12,000,000.0              
Maturity date                   Oct. 19, 2022              
Debt Instrument, Periodic Payment                   $ 9,800,000              
Promissory Note | Amyris Inc | Amyris Collaboration Agreement                                  
Business Acquisition [Line Items]                                  
Due to Related Parties                 12,000,000.0                
Promissory Note | Minimum [Member] | Amyris Inc                                  
Business Acquisition [Line Items]                                  
Debt Instrument, Periodic Payment                   200,000              
Promissory Note | Maximum [Member] | Amyris Inc                                  
Business Acquisition [Line Items]                                  
Debt Instrument, Periodic Payment                   $ 300,000              
Partnership Agreement [Member] | Promissory Note | Amyris Inc                                  
Business Acquisition [Line Items]                                  
Debt Instrument, Term Payment       9,800,000                          
Promissory Note, Principal Balance       $ 12,000,000.0                          
Arcaea LLC [Member]                                  
Business Acquisition [Line Items]                                  
Common units | shares                   731,250              
Carrying value of the equity method investment         $ 11,900,000                        
(Loss) gain on equity method investments:                     11,900,000            
carrying value outstanding                     0            
Allocated Upfront Non Cash Consideration                   $ 1,200,000              
Additional Non Cash Consideration                     35,500,000            
Revenue remaining performance obligation amount                     3,600,000            
Deferred Revenue                   38,300,000 47,400,000            
Deferred Revenue, Revenue Recognized                   13,500,000 3,700,000            
Deferred Revenue, Balance                   38,300,000 $ 47,400,000            
BiomEdit LLC [Member]                                  
Business Acquisition [Line Items]                                  
Consideration     $ 32,500,000                            
Common units | shares 3,900,000   3,900,000                            
Shares forfeited | shares 731,250                                
Carrying value of the equity method investment                   8,900,000              
Allocated Upfront Non Cash Consideration                   2,200,000              
Deferred Revenue                   8,100,000              
Deferred Revenue, Revenue Recognized                   1,000,000.0              
Deferred Revenue, Balance                   8,100,000              
Arcaea [Member]                                  
Business Acquisition [Line Items]                                  
Consideration         $ 35,500,000                        
Additional preferred units issued | shares                     5,229,900            
Number of common units received | shares         1,755,000                        
Arcaea [Member] | License                                  
Business Acquisition [Line Items]                                  
Common units | shares         9,000,000                        
Allonnia [Member]                                  
Business Acquisition [Line Items]                                  
Consideration                       $ 18,500,000          
Number of common units received | shares                       3,600,000          
Number of additional common units received | shares                     1,867,411            
Carrying value of the equity method investment                     $ 0   $ 24,500,000        
(Loss) gain on equity method investments:                     (12,700,000)   $ (24,500,000)        
Allocated Upfront Non Cash Consideration                   $ 2,500,000              
Additional Non Cash Consideration                     12,700,000            
Number Of Allocated Performance Obligations | Obligations                   10              
Deferred Revenue                   $ 35,900,000 38,000,000.0            
Deferred Revenue, Revenue Recognized                   4,300,000 5,100,000 $ 5,000,000.0          
Fixed non-cash consideration                   2,500,000              
Deferred Revenue, Balance                   35,900,000 38,000,000.0            
Series A Preferred Stock                                  
Business Acquisition [Line Items]                                  
Share Sold | shares         1,755,000                        
Consideration         $ 19,500,000           $ 57,100,000            
Additional preferred units issued | shares         7,245,000 5,400,000                      
Number of additional common units received | shares                     1,867,411            
Series A Preferred Stock | BiomEdit LLC [Member]                                  
Business Acquisition [Line Items]                                  
Share Sold | shares     6,662,500                            
Additional preferred units issued | shares     1,537,500                            
Carrying value of the equity method investment                   400,000              
(Loss) gain on equity method investments:                   8,500,000              
Series A Preferred Stock | Arcaea [Member]                                  
Business Acquisition [Line Items]                                  
Business Combination, Issue | shares                     5,139,900            
Number of additional common units received | shares                     5,229,900            
Series A Preferred Stock | Allonnia [Member]                                  
Business Acquisition [Line Items]                                  
Share Sold | shares                       1,664,911 2,970,000        
Consideration           $ 33,000,000.0         $ 200,000            
Additional preferred units issued | shares           630,000                      
Business Combination, Issue | shares                     22,500            
Share issued In Exchange For The Rights To Certain Intellectual Property | shares                       180,000          
Additional preferred units issued | shares           5,400,000           1,844,911 5,400,000        
Motif FoodWorks, Inc.                                  
Business Acquisition [Line Items]                                  
Additional loss recognized                   0 $ 0 $ 0          
Equity method investments fair value                           $ 65,100,000      
Motif FoodWorks, Inc. | Variable Interest Entity, Not Primary Beneficiary | Technical Development Agreement [Member]                                  
Business Acquisition [Line Items]                                  
Deferred Revenue                   52,000,000.0 52,200,000            
Deferred Revenue, Revenue Recognized                   1,900,000 20,200,000 20,800,000          
Investment owned, balance, shares | shares                           9,000,900      
Equity Method Investments                               $ 65,100,000  
Impairment losses on equity method investments                           $ 65,100,000      
Equity method investments fair value                   0              
Deferred Revenue, Balance                   52,000,000.0 52,200,000            
Motif FoodWorks, Inc. | Variable Interest Entity, Not Primary Beneficiary | Technical Development Agreement [Member] | Material Rights Tranche One [Member]                                  
Business Acquisition [Line Items]                                  
Number Of Allocated Performance Obligations | Obligations                           10      
Revenue remaining performance obligation amount                           $ 6,500,000      
Motif FoodWorks, Inc. | Series A Preferred Stock                                  
Business Acquisition [Line Items]                                  
Share Sold | shares                           8,100,720      
Consideration                           $ 90,000,000.0      
Genomatica [Member] | Variable Interest Entity, Not Primary Beneficiary | Two Thousand And Eighteen Technical Development Agreement [Member]                                  
Business Acquisition [Line Items]                                  
Revenue remaining performance obligation amount                                 $ 40,000,000.0
Investment owned, at cost                           $ 40,000,000.0      
Genomatica [Member] | Variable Interest Entity, Not Primary Beneficiary | Foundry Terms Of Service Agreement [Member]                                  
Business Acquisition [Line Items]                                  
Deferred Revenue                   6,300,000 17,100,000            
Deferred Revenue, Revenue Recognized                   10,900,000 12,900,000 9,400,000          
Upfront amount received                     8,300,000 6,900,000          
Deferred Revenue, Balance                   6,300,000 17,100,000            
Genomatica [Member] | Variable Interest Entity, Not Primary Beneficiary | Foundry Terms Of Service Agreement [Member] | Preferred Stock [Member]                                  
Business Acquisition [Line Items]                                  
Equity securities without readily determinable fair value                   44,900,000 55,000,000.0            
Cooksonia                                  
Business Acquisition [Line Items]                                  
Equity method investment, underlying equity in net assets               $ 8,100,000                  
Cooksonia | Parent                                  
Business Acquisition [Line Items]                                  
Equity Method Investments               13,100,000                  
Payment to acquire equity method investments               5,000,000.0                  
Cooksonia | Noncontrolling Interest [Member]                                  
Business Acquisition [Line Items]                                  
Equity Method Investments               29,700,000                  
Equity method investment, underlying equity in net assets               8,100,000                  
Cooksonia | Capital Unit, Class A [Member] | Variable Interest Entity, Primary Beneficiary [Member]                                  
Business Acquisition [Line Items]                                  
Payment to acquire equity method investments                 $ 5,000,000.0                
Variable interest entity ownership percentage                 70.00%                
Cooksonia | Capital Unit, Class B [Member]                                  
Business Acquisition [Line Items]                                  
Payment to acquire equity method investments               5,000,000.0                  
Cooksonia | Capital Unit, Class B [Member] | Related Party Investor [Member]                                  
Business Acquisition [Line Items]                                  
Payment to acquire equity method investments                 $ 20,000,000.0                
Synlogic Inc                                  
Business Acquisition [Line Items]                                  
Revenue remaining performance obligation amount                             $ 30,000,000.0    
Deferred Revenue, Revenue Recognized                   100,000 100,000            
Equity method investments fair value   $ 35,800,000                              
Equity Method Investment Difference Between Aggregated Cost And Underlying Equity                             29,800,000    
Equity method investment                             80,000,000.0    
Synlogic Inc | Warrant Agreement [Member]                                  
Business Acquisition [Line Items]                                  
Number of ordinary share called by each warrant | shares   2,548,117                              
Exercise price of warrants or rights | $ / shares   $ 9.00                              
Synlogic Inc | Foundry Services Agreement [Member]                                  
Business Acquisition [Line Items]                                  
Exercise price of warrants or rights | $ / shares             $ 8.99                    
Cash   $ 30,000,000.0                              
Payments for repurchase of warrants   $ 22,900,000                              
Warrant Exercisable Interest Rate             19.99%                    
Synlogic Inc | Maximum [Member]                                  
Business Acquisition [Line Items]                                  
Deferred Revenue           $ 200,000             $ 200,000        
Deferred Revenue, Balance           200,000             200,000        
Synlogic Inc | Warrants, each whole warrant exercisable for one Class A ordinary share, each at an exercise price of $11.50 per share [Member]                                  
Business Acquisition [Line Items]                                  
Equity Method Investments                             $ 14,400,000    
Synlogic Inc | Common Stock [Member]                                  
Business Acquisition [Line Items]                                  
Equity metohd investment ownership percentage   19.90%                              
Stock issued during period shares | shares             6,340,771                    
Shares issued price per share | $ / shares   $ 9.00                              
Issuance of Series E convertible preferred stock, net of issuance costs of $4,830   $ 57,100,000                              
Joyn Bio, LLC [Member]                                  
Business Acquisition [Line Items]                                  
Deferred Revenue                   0 4,600,000            
Deferred Revenue, Revenue Recognized                   2,900,000 5,300,000 $ 7,300,000          
Equity Method Investments                   $ 97,900,000              
Equity metohd investment ownership percentage                   50.00%              
Deferred Revenue, Balance                   $ 0 $ 4,600,000            
Joyn Bio, LLC [Member] | Foundry Services Agreement [Member]                                  
Business Acquisition [Line Items]                                  
Upfront amount received           $ 15,000,000.0   20,000,000.0         $ 15,000,000.0        
Joyn Bio, LLC [Member] | Capital Units Class C [Member]                                  
Business Acquisition [Line Items]                                  
Payment to acquire equity method investments               $ 20,000,000.0                  
Joyn Bio, LLC [Member] | Capital Units Class C [Member] | Bayer [Member]                                  
Business Acquisition [Line Items]                                  
Payment to acquire equity method investments                 $ 20,000.0                
Equity metohd investment ownership percentage                 50.00%                
Commitment to contribute additional capital                 $ 60,000,000.0                
Joyn Bio, LLC [Member] | Cooksonia                                  
Business Acquisition [Line Items]                                  
Equity metohd investment ownership percentage                       50.00%          
Joyn Bio, LLC [Member] | Cooksonia | Capital Unit, Class B [Member] | Related Party Investor [Member]                                  
Business Acquisition [Line Items]                                  
Equity metohd investment ownership percentage                 20.00%                
Joyn Bio, LLC [Member] | Cooksonia | Capital Units Class C [Member]                                  
Business Acquisition [Line Items]                                  
Equity metohd investment ownership percentage                 50.00%                
[1] Equity method investments in Platform Ventures with a carrying value of zero as of December 31, 2022 and 2021 were excluded from the table above.
v3.22.4
Employee Benefit Plan - Additional Information (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Retirement Benefits [Abstract]      
Contribution by company, percent 5.00%    
Contribution by company, amount $ 6.1 $ 3.7 $ 2.2
v3.22.4
Income Taxes - Summary of Loss Before Provision for Incomes Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract]      
Domestic $ (2,118,095) $ (1,837,497) $ (124,834)
Foreign (3,304) (625) 0
Total $ (2,121,399) $ (1,838,122) $ (124,834)
v3.22.4
Income Taxes - Summary of Income Taxes Expenses Incurred During the Period (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Current:      
State $ 271 $ 1 $ 26
Foreign 159 0 0
Total current 430 1 26
Deferred:      
Federal (10,500) (413) 581
State (3,943) (912) 1,282
Foreign (1,014) (156) 0
Total deferred (15,457) (1,481) 1,863
Income tax (benefit) expense $ (15,027) $ (1,480) $ 1,889
v3.22.4
Income Taxes - Summary of Reconciliation of the Statutory Corporate Income Tax Rate to the Effective Tax Rate (Details)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Effective Income Tax Rate Reconciliation, Percent [Abstract]      
Federal income tax at statutory rate 21.00% 21.00% 21.00%
State income tax 0.00% 4.50% 4.50%
Change in valuation allowance 0.80% (23.90%) (31.30%)
Stock-based compensation (16.70%) (0.20%) 0.00%
Executive compensation (5.30%) (2.00%) 0.00%
Tax credits 0.60% 0.90% 4.80%
Other 0.30% 0.20% 0.50%
Effective tax rate 0.70% 0.10% (1.50%)
v3.22.4
Income Taxes - Summary of Deferred Taxes Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Deferred tax assets:      
Net operating loss carryforwards $ 434,020 $ 174,127  
Tax credit carryforwards 74,336 37,455  
Capitalized research and development costs 162,601 0  
Accrued expenses 1,330 2,690  
Deferred revenue 46,798 45,928  
Stock-based compensation 124,126 318,049  
Amortizable intangibles 6,010 3,834  
Lease liabilities 113,665 0  
Tenant allowance 0 2,927  
Other 863 0  
Deferred tax assets before valuation allowance 963,749 585,010  
Valuation allowance (833,086) (583,107) $ (143,827)
Deferred tax assets, net of valuation allowance 130,663 1,903  
Deferred tax liabilities:      
Amortizable intangibles (23,583) (4,722)  
Property, plant, and equipment (13,405) (830)  
Lease right-of-use assets (103,357) 0  
Basis differences 0 (1,522)  
Deferred tax liabilities (140,345) (7,074)  
Net deferred taxes $ (9,682) $ (5,171)  
v3.22.4
Income Taxes - Summary of Deferred Tax Assets Valuation Allowance (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Valuation Allowance [Abstract]    
Beginning of Period $ 583,107 $ 143,827
Additions 249,979 439,280
End of Period $ 833,086 $ 583,107
v3.22.4
Income Taxes - Additional Information (Details) - USD ($)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Line Items]    
Valuation allowance, Deferred tax asset, Increase, Amount $ 249,979,000 $ 439,280,000
Percenetage of stockholders determining cumulative change in ownership 5.00%  
Percentage points used in determining cumulative change in ownership 50.00%  
Uncertain tax positions $ 0 0
Unrecognized tax benefits, Income tax penalties and interest accrued 0 $ 0
Domestic Tax Authority [Member]    
Income Tax Disclosure [Line Items]    
Operating loss carryforwards $ 1,838,000,000.0  
Operating loss expiration year 2029  
Domestic Tax Authority [Member] | Research Tax Credit Carryforward [Member]    
Income Tax Disclosure [Line Items]    
Operating loss expiration year 2029  
Tax credit carryforward, Amount $ 30,300,000  
Domestic Tax Authority [Member] | Begin To Expire In 2029 [Member]    
Income Tax Disclosure [Line Items]    
Operating loss carryforwards 139,200,000  
Domestic Tax Authority [Member] | Carried Forward Indefinitely [Member]    
Income Tax Disclosure [Line Items]    
Operating loss carryforwards 1,698,800,000  
State and Local Jurisdiction [Member]    
Income Tax Disclosure [Line Items]    
Operating loss carryforwards $ 734,100,000  
Operating loss expiration year 2030  
State and Local Jurisdiction [Member] | Research Tax Credit Carryforward [Member]    
Income Tax Disclosure [Line Items]    
Operating loss expiration year 2030  
Tax credit carryforward, Amount $ 55,700,000  
State and Local Jurisdiction [Member] | Carried Forward Indefinitely [Member]    
Income Tax Disclosure [Line Items]    
Operating loss carryforwards 72,200,000  
State and Local Jurisdiction [Member] | Begin To Expire In 2030 [Member]    
Income Tax Disclosure [Line Items]    
Operating loss carryforwards 661,900,000  
Foreign Tax Authority [Member]    
Income Tax Disclosure [Line Items]    
Operating loss carryforwards $ 1,400,000  
Operating loss expiration year 2030  
Foreign Tax Authority [Member] | Carried Forward Indefinitely [Member]    
Income Tax Disclosure [Line Items]    
Operating loss carryforwards $ 900,000  
Foreign Tax Authority [Member] | Begin To Expire In 2030 [Member]    
Income Tax Disclosure [Line Items]    
Operating loss carryforwards $ 500,000  
v3.22.4
Net Loss per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Numerator:      
Net loss attributable to Ginkgo Bioworks Holdings, Inc. stockholders, basic $ (2,104,929) $ (1,830,047) $ (126,609)
Change in fair value of warrant liabilities 124,970 58,615 0
Change in fair value of warrant liabilities 0    
Change in fair value of contingent consideration common shares liability 3,143
Net loss attributable to Ginkgo Bioworks Holdings, Inc. stockholders, diluted $ (2,108,072) $ (1,888,662) $ (126,609)
Denominator      
Basic 1,679,061,465 1,359,848,803 1,274,766,915
Effect of dilutive securities:      
Warrants 524,540
Contingent consideration common shares 777,384
Weighted average common shares outstanding, diluted 1,679,838,849 1,360,373,343 1,274,766,915
Basic net loss per share $ (1.25) $ (1.35) $ (0.10)
Diluted net loss per share $ (1.25) $ (1.39) $ (0.10)
v3.22.4
Net Loss per Share - Summary Of Anti-Dilutive Shares (Details) - shares
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Class Of Stock [Line Items]      
Shares excluded from the computation of diluted loss per share 355,756,812 354,728,664 159,726,314
Warrants [Member] | Class A common stock [Member]      
Class Of Stock [Line Items]      
Shares excluded from the computation of diluted loss per share 51,824,895 1,020,187
Stock Options [Member]      
Class Of Stock [Line Items]      
Shares excluded from the computation of diluted loss per share 12,710,709 25,228,853 33,354,871
Restricted Stock Units (RSUs) [Member]      
Class Of Stock [Line Items]      
Shares excluded from the computation of diluted loss per share 134,436,442 168,321,952 124,932,207
RSA [Member]      
Class Of Stock [Line Items]      
Shares excluded from the computation of diluted loss per share 4,091 182,622 419,049
New Ginkgo Earn-out shares [Member] | Class A common stock [Member]      
Class Of Stock [Line Items]      
Shares excluded from the computation of diluted loss per share 156,780,675 [1] 160,995,237 [1]
[1]

(1) Represents earnout shares for which the vesting conditions have not been satisfied.

v3.22.4
Related Parties - Summary of Condensed Consolidated Balance Sheets (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Related Party Transaction [Line Items]    
Accounts receivable $ 1,558 $ 4,598
Deferred Revenue 141,497 160,821
Joyn [Member]    
Related Party Transaction [Line Items]    
Accounts receivable 0 5
Deferred Revenue 0 4,608
Motif [Member]    
Related Party Transaction [Line Items]    
Accounts receivable 0 3,020
Deferred Revenue 52,018 52,171
Genomatica [Member]    
Related Party Transaction [Line Items]    
Deferred Revenue 6,250 17,111
Allonnia [Member]    
Related Party Transaction [Line Items]    
Accounts receivable 140 849
Deferred Revenue 35,876 38,016
Arcaea [Member]    
Related Party Transaction [Line Items]    
Accounts receivable 335 724
Deferred Revenue 38,334 47,356
Ayana [Member]    
Related Party Transaction [Line Items]    
Accounts receivable 403 0
Verb [Member]    
Related Party Transaction [Line Items]    
Accounts receivable 361 0
BiomEdit [Member]    
Related Party Transaction [Line Items]    
Accounts receivable 288 0
Deferred Revenue 8,144 0
Other Equity Investees [Member]    
Related Party Transaction [Line Items]    
Accounts receivable 31 0
Deferred Revenue $ 875 $ 1,559
v3.22.4
Related Parties - Summary of Condensed Consolidated Statements of Operations and Comprehensive Loss (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Related Party Transaction [Line Items]      
Foundry Revenue $ 38,813 $ 47,161 $ 42,535
Joyn [Member]      
Related Party Transaction [Line Items]      
Foundry Revenue 2,896 5,254 7,273
Motif [Member]      
Related Party Transaction [Line Items]      
Foundry Revenue 1,937 20,224 20,798
Genomatica [Member]      
Related Party Transaction [Line Items]      
Foundry Revenue 10,861 12,868 9,431
Allonnia [Member]      
Related Party Transaction [Line Items]      
Foundry Revenue 4,332 5,126 4,960
Arcaea [Member]      
Related Party Transaction [Line Items]      
Foundry Revenue 13,490 3,676 0
Ayana [Member]      
Related Party Transaction [Line Items]      
Foundry Revenue 1,266 0 0
Verb [Member]      
Related Party Transaction [Line Items]      
Foundry Revenue 2,359 0 0
BiomEdit [Member]      
Related Party Transaction [Line Items]      
Foundry Revenue 1,016 0 0
Other equity investees [Member]      
Related Party Transaction [Line Items]      
Foundry Revenue $ 656 $ 13 $ 73
v3.22.4
Related Parties (Additional Information) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Apr. 30, 2022
Related Party Transaction [Line Items]        
(Loss) gain on equity method investments: $ (43,761) $ (77,284) $ (396)  
Joyn [Member]        
Related Party Transaction [Line Items]        
Working capital       $ 10,000
Maturity date Mar. 31, 2023      
Interest rate 4.50%      
Discount Rate 20.00%      
(Loss) gain on equity method investments: $ 5,300      
v3.22.4
Subsequent Events (Additional Information) (Details) - Subsequent Event [Member] - Zymergen [Member]
$ in Millions
Mar. 10, 2023
USD ($)
Subsequent Event [Line Items]  
Deposit accounts $ 74
Percentage for represent cash balance with Silicon Valley Bank ("SVB") 6.00%
Lease Agreements [Member]  
Subsequent Event [Line Items]  
Collateral for letters of credit $ 10