0001601830-22-000012 | 10-K | XBRL Viewer | Recursion Pharmaceuticals INC

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Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 285,116	$ 262,126
Restricted cash	1,552	2,000
Accounts receivable	34	156
Other receivables	9,056	0
Investments	231,446	0
Other current assets	7,514	2,155
Total current assets	534,718	266,437
Restricted cash, non-current	8,681	3,041
Property and equipment, net	64,725	25,967
Intangible assets, net	1,385	1,689
Goodwill	801	801
Other non-current assets	35	650
Total assets	610,345	298,585
Current liabilities
Accounts payable	2,819	1,074
Accrued expenses and other liabilities	32,333	10,485
Current portion of unearned revenue	10,000	10,000
Current portion of notes payable	90	1,073
Current portion of lease incentive obligation	1,416	467
Total current liabilities	46,658	23,099
Deferred rent	4,110	2,674
Unearned revenue, net of current portion	6,667	16,667
Notes payable, net of current portion	633	11,414
Lease incentive obligation, net of current portion	9,339	2,708
Total liabilities	67,407	56,562
Commitments and contingencies (Note 8)
Convertible preferred stock (series A, A-1, B, C and D), $0.00001 par value; 200,000,000 and 121,434,713 shares authorized as of December 31, 2021 and December 31, 2020, respectively; 0 and 112,088,065 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively; liquidation preference of $0 and $450,850 as of December 31, 2021 and December 31, 2020, respectively	0	448,312
Stockholders’ equity (deficit)
Common stock, $0.00001 par value; 2,000,000,000 shares (Class A 1,989,032,117 and Class B 10,967,883) and 188,400,000 Class A shares authorized as of December 31, 2021 and December 31, 2020, respectively; 170,272,462 shares (Class A 160,906,245 and Class B 9,366,217) and 22,314,685 Class A shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively	2	0
Additional paid-in capital	943,142	7,312
Accumulated deficit	(400,080)	(213,601)
Accumulated other comprehensive loss	(126)	0
Total stockholders’ equity (deficit)	542,938	(206,289)
Total liabilities, convertible preferred stock and stockholders’ equity (deficit)	$ 610,345	$ 298,585

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Temporary Equity [Abstract]
Convertible preferred stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Convertible preferred stock, shares authorized (in shares)	200,000,000	121,434,713
Convertible preferred stock, shares issued (in shares)	0	112,088,065
Convertible preferred stock, shares outstanding (in shares)	0	112,088,065
Convertible preferred stock, liquidation preference	$ 0	$ 450,850
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized (in shares)	2,000,000,000	188,400,000
Common stock, shares issued (in shares)	170,272,462	22,314,685
Common sock, shares outstanding (in shares)	170,272,462	22,314,685
Class A
Common stock, shares authorized (in shares)	1,989,032,117
Common stock, shares issued (in shares)	160,906,245
Common sock, shares outstanding (in shares)	160,906,245
Class B
Common stock, shares authorized (in shares)	10,967,883
Common stock, shares issued (in shares)	9,366,217
Common sock, shares outstanding (in shares)	9,366,217

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenue
Revenue	$ 10,178	$ 3,962	$ 2,319
Operating expenses
Research and development	135,271	63,319	45,809
General and administrative	57,682	25,258	18,951
Total operating expenses	192,953	88,577	64,760
Loss from operations	(182,775)	(84,615)	(62,441)
Other income (loss), net	(3,704)	(2,391)	562
Net loss	$ (186,479)	$ (87,006)	$ (61,879)
Per share data
Net loss per share of Class A and B common stock, basic (in dollars per share)	$ (1.49)	$ (3.99)	$ (2.87)
Net loss per share of Class A and B common stock, diluted (in dollars per share)	$ (1.49)	$ (3.99)	$ (2.87)
Weighted average shares outstanding, basic (in shares)	125,348,110	21,781,386	21,570,265
Weighted average shares outstanding, diluted (in shares)	125,348,110	21,781,386	21,570,265
Grant revenue
Revenue
Revenue	$ 178	$ 549	$ 608
Operating revenue
Revenue
Revenue	$ 10,000	$ 3,413	$ 1,711

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (186,479)	$ (87,006)	$ (61,879)
Unrealized losses on investments	(162)	0	0
Net realized losses on investments reclassified into net loss	36	0	0
Other comprehensive loss	(126)	0	0
Comprehensive loss	$ (186,605)	$ (87,006)	$ (61,879)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit) - USD ($)	Total	Series A, B and C Warrants	Convertible preferred stock	Common Stock (Class A and B)	Common Stock (Class A and B) Series A, B and C Warrants	Common Stock (Class A and B) Convertible preferred stock	Additional Paid-in-Capital	Additional Paid-in-Capital Series A, B and C Warrants	Additional Paid-in-Capital Convertible preferred stock	Accumulated Deficit	Accumulated other comprehensive loss
Temporary equity, shares outstanding at beginning of period (in shares) at Dec. 31, 2018	56,413,172
Temporary equity, carrying amount attributable to parent at beginning of period at Dec. 31, 2018	$ 81,194,000
Increase (Decrease) in Temporary Equity [Roll Forward]
Issuance of Series D Convertible preferred stock inclusive of the convertible notes, net of issuance costs of $228 (in shares)			18,776,345
Issuance of Series D convertible preferred stock inclusive of the convertible notes, net of issuance costs			$ 119,915,000
Temporary equity, shares outstanding at end of period (in shares) at Dec. 31, 2019	75,189,517
Temporary equity, carrying amount attributable to parent at end of period at Dec. 31, 2019	$ 201,109,000
Common stock, shares outstanding at beginning period (in shares) at Dec. 31, 2018				21,457,969
Total stockholders’ equity (deficit) at beginning of period at Dec. 31, 2018	(63,847,000)			$ 0			$ 869,000			$ (64,716,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(61,879,000)									(61,879,000)
Vesting of stock options exercised early	11,000						11,000
Stock option exercises	65,000						65,000
Other comprehensive loss	0
Stock option exercises and other (in shares)				179,640
Stock-based compensation	1,385,000						1,385,000
Common stock, shares outstanding at end period (in shares) at Dec. 31, 2019				21,637,609
Total stockholders’ equity (deficit) at end of period at Dec. 31, 2019	$ (124,265,000)			$ 0			2,330,000			(126,595,000)
Increase (Decrease) in Temporary Equity [Roll Forward]
Issuance of Series D Convertible preferred stock inclusive of the convertible notes, net of issuance costs of $228 (in shares)			36,898,548
Issuance of Series D convertible preferred stock inclusive of the convertible notes, net of issuance costs			$ 247,203,000
Temporary equity, shares outstanding at end of period (in shares) at Dec. 31, 2020	112,088,065
Temporary equity, carrying amount attributable to parent at end of period at Dec. 31, 2020	$ 448,312,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(87,006,000)									(87,006,000)
Vesting of stock options exercised early	9,000						9,000
Stock option exercises	681,000						681,000
Other comprehensive loss	0
Stock option exercises and other (in shares)				677,076
Stock-based compensation	$ 4,292,000						4,292,000
Common stock, shares outstanding at end period (in shares) at Dec. 31, 2020	22,314,685			22,314,685
Total stockholders’ equity (deficit) at end of period at Dec. 31, 2020	$ (206,289,000)			$ 0			7,312,000			(213,601,000)
Increase (Decrease) in Temporary Equity [Roll Forward]
Issuance of Series D convertible preferred stock inclusive of the convertible notes, net of issuance costs	$ 0
Conversion of preferred stock to common stock (in shares)	(112,088,065)
Conversion of preferred stock to common stock	$ (448,312,000)
Temporary equity, shares outstanding at end of period (in shares) at Dec. 31, 2021	0
Temporary equity, carrying amount attributable to parent at end of period at Dec. 31, 2021	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(186,479,000)									(186,479,000)
Stock option exercises	6,812,000						6,812,000
Other comprehensive loss	(126,000)										$ (126,000)
Common stock issuance for initial public offering, net of issuance costs (in shares)				27,878,787
Common stock issuance for initial public offering, net of issuance costs	$ 462,354,000			$ 1,000			462,353,000
Conversion of preferred stock to common stock and warrant exercises (in shares)					343,609	115,598,018
Conversion of preferred stock to common stock and stock warrant exercises		$ 3,512,000	$ 448,312,000			$ 1,000		$ 3,512,000	$ 448,311,000
Stock option exercises and other (in shares)	4,017,316			4,137,363
Stock-based compensation	$ 14,842,000						14,842,000
Common stock, shares outstanding at end period (in shares) at Dec. 31, 2021	170,272,462			170,272,462
Total stockholders’ equity (deficit) at end of period at Dec. 31, 2021	$ 542,938,000			$ 2,000			$ 943,142,000			$ (400,080,000)	$ (126,000)

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities
Net loss	$ (186,479)	$ (87,006)	$ (61,879)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	8,405	3,943	2,489
Stock-based compensation	14,842	4,292	1,385
Asset impairment	0	874	0
Loss on debt extinguishment	827	883	555
Other, net	4,097	781	0
Changes in operating assets and liabilities:
Accounts receivable	114	(5)	(27)
Other receivables and assets	(5,490)	(1,114)	632
Unearned revenue	(10,000)	26,667	0
Accounts payable	1,745	(185)	(340)
Accrued development expense	561	1,348	941
Accrued expenses and other current liabilities	12,764	4,123	(798)
Net cash used in operating activities	(158,614)	(45,399)	(57,042)
Cash flows from investing activities
Purchases of property and equipment	(39,798)	(5,831)	(3,910)
Acquisition of a business	0	(2,600)	0
Purchase of an intangible asset	0	(904)	0
Purchases of investments	(301,137)	0	0
Sales and maturities of investments	69,191	0	0
Proceeds from note receivable	0	595	0
Net cash used in investing activities	(271,744)	(8,740)	(3,910)
Cash flows from financing activities
Proceeds from initial public offering of common stock, net of issuance costs	462,901	0	0
Proceeds from sale of preferred stock, net of issuance costs	0	239,131	119,915
Proceeds from equity incentive plans and warrants	8,437	681	65
Repayment of long-term debt	(12,798)	(77)	(11,183)
Proceeds from long-term debt	0	0	11,888
Proceeds from convertible notes	0	6,400	0
Payments of debt issuance costs	0	0	(275)
Net cash provided by financing activities	458,540	246,135	120,410
Net change in cash, cash equivalents and restricted cash	28,182	191,996	59,458
Cash, cash equivalents and restricted cash, beginning of period	267,167	75,171	15,713
Cash, cash equivalents and restricted cash, end of period	295,349	267,167	75,171
Supplemental disclosure of non—cash investing and financing information
Conversion of preferred stock to common stock	448,312	0	0
Conversion of convertible notes to equity	0	8,071	0
Deferred issuance costs recorded in equity	547	547	0
Accrued property and equipment	7,749	1,400	0
Supplemental disclosure of cash flow information
Cash paid for interest	$ 680	$ 989	$ 485

Description of the Business	12 Months Ended
Description of the Business	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of the Business	Description of the Business Recursion Pharmaceuticals, Inc. (Recursion, the Company, we or our) was originally formed as a limited liability company on November 4, 2013 under the name Recursion Pharmaceuticals, LLC. In September 2016, we converted to a Delaware corporation and changed our name to Recursion Pharmaceuticals, Inc. Recursion is a biotechnology company that combines automation, artificial intelligence, machine learning, in vivo validation capabilities and a highly cross-functional team to discover novel medicines that expand our collective understanding of biology. Recursion’s rich, relatable database of biological images generated in-house on the Company’s robotics platform enables advanced machine learning approaches to reveal drug candidates, mechanisms of action, novel chemistry and potential toxicity, with the eventual goal of decoding biology and advancing new therapeutics that radically improve people’s lives. As of December 31, 2021, the Company had an accumulated deficit of $400.1 million. The Company expects to incur substantial operating losses in future periods and will require additional capital to advance its drug candidates. The Company does not expect to generate significant revenue until the Company successfully completes significant drug development milestones with its subsidiaries or in collaboration with third parties, which the Company expects will take a number of years. In order to commercialize its drug candidates, the Company or its partners need to complete clinical development and comply with comprehensive regulatory requirements. The Company is subject to a number of risks and uncertainties similar to those of other companies of the same size within the biotechnology industry, such as the uncertainty of clinical trial outcomes, uncertainty of additional funding and a history of operating losses. The Company has funded its operations to date through the issuance of convertible preferred stock (see Note 9, “Convertible Preferred Stock” for additional details) and the issuance of Class A common stock in an Initial Public Offering (IPO), which was completed in April 2021 (see Note 10, “Common Stock” for additional details). Recursion will likely be required to raise additional capital. As of December 31, 2021, the Company did not have any unconditional outstanding commitments for additional funding. If the Company is unable to access additional funds when needed, it may not be able to continue the development of its products or the Company could be required to delay, scale back or abandon some or all of its development programs and other operations. The Company’s ability to access capital when needed is not assured and, if not achieved on a timely basis, could materially harm its business, financial condition and results of operations. The Company believes that the Company’s existing cash, cash equivalents and investments will be sufficient to fund the Company’s operating expenses and capital expenditures for at least the next 12 months.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Use of Estimates

The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires the Company to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ from those amounts. Significant estimates and assumptions include the estimated progress towards the satisfaction of performance obligations to record revenue, accrued research and development expenses and the fair value of stock-based awards issued.

Basis of Presentation

The consolidated financial statements include the accounts of Recursion and its majority-owned subsidiaries that the Company controls. Intercompany balances and transactions have been eliminated in consolidation.

In April 2021, the Company completed a 1.5-for-1 forward stock split of common and convertible preferred stock. All shares presented within these consolidated financial statements were adjusted to reflect the forward stock split for all periods presented. See Note 10, “Common Stock” for additional details.

In April 2021, the Company’s Board of Directors authorized two classes of common stock, Class A and Class B. Certain shares of Class A were exchanged for Class B on a one-for-one basis. The creation and issuance of the Class B common stock did not affect the loss per share for the Class A or Class B shares for any period. The Company presented the 2021 net loss per share amounts as if the authorization and exchange occurred as of the start of the 2021 reporting period. All share amounts presented prior to the authorization are referred to as Class A common stock. See Note 10, “Common Stock” for additional details.

Segment Information

Recursion operates as a single operating segment. The Company’s chief operating decision maker is its chief executive officer, who allocates resources and assesses performance at the consolidated level.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents and marketable securities. These financial instruments are primarily held at two U.S. financial institutions that management believes are of high credit quality. Recursion’s primary bank accounts significantly exceed the federally insured limits.

The Company is dependent on third-party suppliers for certain research and development activities including preclinical and clinical testing. In particular, the Company relies and expects to continue to rely on a small number of these suppliers. These activities could be adversely affected by a significant interruption to Recursion’s third-party suppliers including a delay in the Company’s preclinical and clinical testing and the supply of certain consumable products and compounds.

Cash, Cash Equivalents and Restricted Cash

Cash and cash equivalents includes bank deposits held in checking accounts, money market funds, commercial paper, corporate bonds and certificates of deposits with maturities of three months or less at the time of purchase.

The Company is required to maintain a cash balance in a collateralized account to secure the Company’s credit cards. Additionally, the Company holds restricted cash related to an outstanding letter of credit issued by J.P. Morgan, which was obtained to secure certain Company obligations relating to tenant improvements.

Investments

Investments consist primarily of marketable debt securities including corporate debt securities, government debt securities, commercial paper and certificates of deposit. Investments that have a readily determinable fair value are recorded at fair value. Investments in marketable debt securities are classified as available-for-sale and are recorded at fair value with any unrealized holding gains or losses, net of tax, included in accumulated other comprehensive income (AOCI) on the Consolidated Balance Sheet. Once realized, the gains and losses are recognized in earnings and included in other income (loss), net in the Consolidated Statement of Operations. Realized gains and losses on sales of investments are computed using the first-in, first-out method.

The Company reviews investments for declines in fair value below cost basis each quarter or whenever circumstances indicate the cost basis of an asset may not be recoverable and assesses whether the decline was due to credit-related or other factors. The evaluation is based on a number of factors, including the extent to which fair value is below cost basis; adverse conditions related specifically to the security, such as any changes to the credit rating of the security; and the intent to sell, or whether Recursion will more likely than not be required to sell the security before recovery of its amortized cost basis. The assessment of whether a security is impaired could change in the future based on new developments or changes in assumptions related to that particular security.

Property and Equipment

Property and equipment is carried at acquisition cost less accumulated depreciation. The cost of normal, recurring, or periodic repairs and maintenance activities related to property and equipment are expensed as incurred.

Depreciation is computed using the straight-line method based on the estimated useful lives of the assets. The estimated useful lives by asset classification are generally as follows:


Software/Licenses			3 years
Office Equipment			5 years
Computer Equipment			5 years
Lab Equipment			7 years
Leasehold Improvements			Lesser of 15 years or the remainder of the lease

Property and equipment are reviewed for impairment as discussed below under Accounting for the Impairment of Long-Lived Assets.

Accounting for the Impairment of Long-Lived Assets

The Company reviews the carrying amounts of long-lived assets, other than goodwill and intangible assets not subject to amortization, for potential impairment when events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. In evaluating recoverability, Recursion groups assets and liabilities at the lowest level such that the identifiable cash flows relating to the group are largely independent of the cash flows of other assets and liabilities. The Company then compares the carrying amount of the asset or asset group with the projected undiscounted future cash flows to be generated by the asset or asset group. In the event impairment exists, an impairment charge is recorded as the amount by which the carrying amount of the asset or asset group exceeds the fair value.

Accruals for Research and Development Expenses and Clinical Trials

As part of the process of preparing its financial statements, the Company is required to estimate its expenses resulting from obligations under contracts with vendors, clinical research organizations and consultants. The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment terms that do not match the periods over which materials or services are provided for under such contracts. The Company’s policy is to record these expenses during the period in which services are performed and efforts are expended. The Company determines accrual estimates by taking into account discussion with applicable personnel and outside service providers as to the progress of clinical trials, or the services completed. During the course of a clinical trial, the Company adjusts its clinical expense recognition if actual results differ from its estimates. The Company makes estimates of its accrued expenses as of each Consolidated Balance Sheet date based on the facts and circumstances known to it at that time. The actual expenses could be different from the amounts accrued.

Leases

The Company rents facilities under operating lease agreements and recognizes rent expense on a straight-line basis over the term of the lease. Certain lease agreements contain tenant improvement allowances, rent holidays, scheduled rent increases and renewal options. Rent holidays and scheduled rent increases are included in the determination of rent expense. Renewals are generally not included in the determination of the lease term unless they are determined to be reasonably assured at the inception of the lease. The Company recognizes rent expense beginning on the date the Company obtains the legal right to use and control the leased space. Tenant improvement allowances are accounted for as a lease incentive obligation, which is amortized as a reduction to rent expense over the lease term.

Revenue Recognition

Grant Revenue

The Company recognizes grant revenue in the period in which the revenue is earned in accordance with the grant agreement, which is the period in which corresponding reimbursable expenses under the grant agreement are incurred.

During the year ended December 31, 2018, the Company was awarded a grant by the National Institutes of Health, which included potential funding of $1.4 million. Revenue recognized related to this grant during the years ended December 31, 2021, 2020 and 2019 was $178 thousand, $549 thousand and $385 thousand, respectively. As of December 31, 2021, $279 thousand of the potential funding still remained.

During the year ended December 31, 2017, the Company was awarded a private grant by the Bill and Melinda Gates Foundation. On November 17, 2017, the Bill and Melinda Gates Foundation distributed $546 thousand to the Company pursuant to such grant. Revenue was recognized as qualifying activities were performed. There was no remaining unearned revenue balance related to this grant as of December 31, 2019. Revenue recognized related to grant during the year ended December 31, 2019 was $223 thousand. As of December 31, 2019, there were no remaining amounts related to this grant available for funding.

Operating Revenue

Operating revenue has primarily been generated through funded research and development agreements (see Note 11, “Collaborative Development Contracts” for additional details). Revenue for research and development agreements is recognized as the Company satisfies a performance obligation by transferring the promised services to the customer. The Company recognizes revenue over time by measuring the progress toward complete satisfaction of the relevant performance obligation using an appropriate input or output method based on the services promised to the customer. This method of recognizing revenue requires the company to make estimates to determine the progress towards completion. A significant change in these estimates could have a material effect on the timing and amount of revenue recognized in future periods.

The Company may also provide options in our agreements under which a partner could request that Recursion provide additional services in the future. Recursion evaluates whether these options are material rights at the inception of the agreement. If the Company determines an option is a material right, Recursion will consider the option a separate performance obligation. Historically, the Company has concluded that options granted to license in the future or to provide additional services are not material rights because these items are contingent upon future events that may not occur and are not priced at a significant discount.

Research and Development Expenses

Research and development expenses comprise costs incurred in performing research and development activities, including drug discovery and development studies, external research and the purchase of laboratory supplies. The Company recognizes expenses associated with third-party contracted services based on the completion of activities as specified in the applicable contracts. Upon the termination of contracts with third-parties, the Company’s financial obligations are generally limited to costs incurred or committed to date. Any advance payments for goods or services to be used or rendered in future research and product development activities are classified as prepaid expenses until the goods or services are rendered.

Stock-Based Compensation

The Company issues stock-based awards to employees and non-employees, generally in the form of stock options and restricted stock units (RSUs). Most of the Company’s stock-based awards have been made to employees. Recursion measures compensation expense for equity awards at their grant-date fair value and recognizes compensation expense over the requisite service period, generally on a straight-line basis. For stock-based awards with a performance condition, Recursion recognizes stock-based compensation expense based on the probable outcome of the performance condition. Awards generally vest over four years for employees. Recursion recognizes the impact of forfeitures on stock-based compensation expense as they occur.

The grant date fair value of stock options is estimated using the Black-Scholes option pricing model, which requires inputs for the expected term, stock price volatility, dividend yield and the risk-free interest rate of the options. The expected term is based on the simplified method since the Company does not have sufficient historical exercise data to estimate the expected term. The volatility is based on an average peer historical volatility over the expected term of the option. The expected dividend yield is assumed to be zero as Recursion has never paid dividends and does not have current plans to pay dividends. The risk-free interest rate is based on the rates available at the time of the grant for zero-coupon U.S. government issues with a remaining term equal to the option's expected term.

The grant date fair value of RSUs is determined using the market price of the Company’s common stock at grant date. For stock-based awards with a market condition, the grant date fair value is determined using a Monte Carlo simulation and stock-based compensation expense is recognized using the accelerated attribution method over the implied service period. When a market condition is satisfied in a period before the end of the implied service period, any remaining unrecognized compensation cost is recognized. Stock-based compensation is recorded in research

and development expense and general and administrative expense based on the role of the employee and non-employee.

Income Taxes

Income taxes are accounted for under the asset and liability method. Provisions for federal, state and foreign income taxes are calculated on reported pretax losses based on current tax laws. Deferred taxes are recognized using enacted tax rates on the future tax consequences of temporary differences, which are the differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases and the tax benefits of carryforwards. A valuation allowance is established or maintained when, based on currently available information, it is more likely than not that all or a portion of a deferred tax asset will not be realized.

For uncertain tax positions, Recursion determines whether the position is more-likely-than-not to be sustained upon examination based on the technical merits of the position. Any tax position that meets the more-likely-than-not recognition threshold is measured and recognized in the Consolidated Financial Statements at the largest amount that is greater than 50% likely of being realized upon ultimate settlement.

Emerging Growth Company

The Company is an emerging growth company (EGC), as defined by the Jumpstart Our Business Startups Act of 2012 (the JOBS Act). The JOBS Act exempts EGCs from being required to comply with new or revised financial accounting standards until private companies are required to comply. Recursion has elected to use the extended transition period for new or revised financial accounting standards, although the Company may adopt certain new or revised accounting standards early. This may make comparisons of the Company’s financial statements with other public companies difficult because of the potential differences in accounting standards used.

Recursion may remain an EGC until the earlier of (1) December 31, 2026; (2) December 31 of the year in which we (a) become a “large accelerated filer;” or (b) have annual gross revenues of $1.07 billion or more; or (3) the date on which we have issued more than $1.0 billion of non-convertible debt over a three-year period.

Recent Accounting Pronouncements

On January 1, 2022, Recursion adopted Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). Under Topic 842, lessees are required to recognize a right-of-use asset and a lease liability on the balance sheet for all leases with terms greater than 12 months. The guidance also expanded the disclosure requirements of lease arrangements. The Company will adopt Topic 842 using the modified retrospective method. Recursion elected the following practical expedients when assessing the transition impact: i) not to reassess whether any expired or existing contracts as of the adoption date are or contain leases; ii) not to reassess the lease classification for any expired or existing leases as of the adoption date; and iii) not to reassess initial direct costs for any existing leases as of the adoption date.

Results for reporting periods beginning after December 31, 2021 will be presented in accordance with the standard, while results for prior periods will not be adjusted and will continue to be reported in accordance with Recursion’s historical accounting. The January 1, 2022 adjustment to record lease right-of-use assets and lease liabilities will be $32.9 million and $47.8 million, respectively. The Company does not anticipate any material change to the consolidated statements of income and cash flows.

Acquisitions

12 Months Ended

Dec. 31, 2021

Business Combination and Asset Acquisition [Abstract]

Acquisitions

Acquisition of Vium, Inc.

In July 2020, the Company entered into an asset purchase agreement to purchase 100% of the assets of Vium, Inc. (Vium) for a total cash consideration of $2.6 million. The primary purpose of the acquisition was to obtain Vium’s technology. This was a related party transaction, see Note 17, “Related Party Transactions” for additional details. The acquisition of Vium has been accounted for as a business combination using the acquisition method of accounting.

The following table summarizes fair values of assets acquired as of the July 2020 acquisition date:


(in thousands)
Inventory	$	232
Property and equipment	14
Technology intangible asset	911
Other intangibles assets	642
Total identifiable net assets	1,799
Goodwill	801
Total assets acquired	$	2,600

The results of operations of Vium have been included in our Consolidated Statements of Operations since the date the business was acquired and were not significant. The technology intangible asset is being amortized on a straight-line basis over its three-year useful life. The inventory and other intangible assets were fully impaired at the time they were acquired as the Company did not intend to use them.

The goodwill includes the value of potential future technologies as well as the overall strategic benefits provided to the business.

Intangible Asset Acquisition

In December 2020, the Company purchased the Recursion domain name for cash consideration of $904 thousand. The purchase price was capitalized as an intangible asset with an indefinite useful life.

Supplemental Financial Information

12 Months Ended

Dec. 31, 2021

Supplemental Financial Information [Abstract]

Supplemental Financial Information

Property and Equipment


	December 31,
(in thousands)	2021		2020
Lab equipment	$	33,076	$	19,701
Leasehold improvements	13,936		13,792
Office equipment	20,005		1,075
Construction in progress	16,445		1,361
Property and equipment, gross	83,462		35,929
Less: Accumulated depreciation	(18,737)		(9,962)
Property and equipment, net	$	64,725	$	25,967

Depreciation expense on property and equipment was $8.8 million, $4.2 million and $3.5 million during the years ended December 31, 2021, 2020 and 2019, respectively.

For the year ended December 31, 2021, the Company purchased a Dell EMC supercomputer for $17.9 million. The purchase was classified as office equipment in the above table. The construction in progress balance primarily relates to leasehold improvements under construction for several leased locations.

Accrued Expenses and Other Liabilities


	December 31,
(in thousands)	2021		2020
Accrued compensation	$	11,738	$	3,085
Accrued development expenses	4,682		2,289
Accrued early discovery expenses	2,114		338
Accrued construction	4,665		—
Accrued professional fees	1,793		734
Accrued other expenses	7,341		4,039
Accrued expense and other liabilities	$	32,333	$	10,485

Interest Expense, net


	Years ended December 31,
(in thousands)	2021		2020		2019
Interest expense	$	2,952	$	1,360	$	635
Interest income	(73)		(336)		(1,741)
Interest expense, net	$	2,879	$	1,024	$	(1,106)

For the year ended December 31, 2021, interest expense primarily related to changes in fair value of the Series A and B warrants (see Note 12, “Stock-based Compensation” for additional details on the warrants). The Company also had expenses for the Midcap loan and tenant improvement allowance notes (see Note 7, “Notes Payable” for additional details.) For the year ended December 31, 2020, interest expense included expenses on the Midcap loan, convertible notes and tenant improvement allowance notes (see Note 7, “Notes Payable” for additional details). For the year ended December 31, 2019, interest expense related to outstanding loans. Interest expense was included in “Other income (loss), net” on the Consolidated Statements of Operations.

Investments

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Investments

In August 2021, the Company invested cash in an investment portfolio. The primary objectives of the investment portfolio are to preserve principal, maintain prudent levels of liquidity and obtain investment returns. Recursion’s investment policy limits investments to certain types of debt and money market instruments issued by institutions with investment-grade credit ratings and it places restrictions on maturities and concentration by asset class and issuer.

The following table summarizes the Company’s available-for-sale investments by type of security:


	December 31, 2021
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair values
Money market funds	$	155,731	$	—	$	—	$	155,731
U.S. government debt	19,960		—		(33)		19,927
Corporate bonds	61,451		—		(74)		61,377
Certificates of deposit	21,450		—		(10)		21,440
Commercial paper	140,911		3		(12)		140,902
Total	$	399,503	$	3	$	(129)	$	399,377

The following table summarizes the classification of the Company’s available-for-sale investments on the Consolidated Balance Sheet:


(in thousands)	December 31, 2021
Cash and cash equivalents	$	167,931
Short-term investments	231,446
Total	$	399,377

As of December 31, 2021, all of the Company’s available-for-sale investments mature in one year or less.

The Company held a total of 34 positions that were in an unrealized loss position as of December 31, 2021. The unrealized losses were primarily due to changes in interest rates. There were no significant unrealized losses as of December 31, 2021. Realized gains and losses on the Company’s investments were insignificant during year ended December 31, 2021. No impairments were recorded during the year ended December 31, 2021. Realized gains and losses on interest-bearing securities are recorded in Other income, net, in the Consolidated Statements of Income.

The Company did not have an investment portfolio as of December 31, 2020.

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill

The carrying amount of goodwill was $801 thousand as of December 31, 2021 and 2020. There were no changes to the carrying amount of goodwill during the year ended December 31, 2021. For the year ended December 31, 2020, the goodwill addition related to the purchase of Vium (see Note 3, “Acquisitions” for additional details on the acquisition). No goodwill impairment was recorded during the years ended December 31, 2021 and 2020.

Intangible Assets, Net

The following table summarizes intangible assets:


	December 31, 2021						December 31, 2020
(in thousands)	Gross carrying amount		Accumulated Amortization		Net carrying amount		Gross carrying amount		Accumulated Amortization		Net carrying amount
Definite-lived intangible asset	$	911	$	(430)	$	481	$	911	$	(126)	$	785
Indefinite-lived intangible asset	904		—		904		904		—		904
Intangible assets, net	$	1,815	$	(430)	$	1,385	$	1,815	$	(126)	$	1,689

Amortization expense was $304 thousand and $126 thousand during the years ended December 31, 2021 and 2020, respectively. There was no amortization expense during the year ended December 31, 2019. Amortization expense was included in research and development in the Consolidated Statements of Operations. Amortization expense for the definite-lived intangible asset will be recognized over approximately the next 2 years.

The indefinite-lived intangible asset represents the Recursion domain name that the Company purchased. No indefinite-lived intangible asset impairment charges were recorded during the years ended December 31, 2021 and 2020. There were no indefinite-lived intangible assets on the Consolidated Balance Sheet as of December 31, 2019.

Notes Payable

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Notes Payable

Midcap Financial

In September 2019, the Company entered into a Credit and Security Agreement with Midcap Financial Trust (Midcap) and the other lenders party thereto (the Midcap loan agreement). The Midcap loan agreement provided for a term loan facility that included an initial tranche of $11.9 million. The Company used $11.2 million of the proceeds from the initial tranche to fully repay a previously outstanding term loan with Pacific Western Bank (Pacific). In July 2021, the Company paid the balance due under the Midcap loan agreement of $12.7 million. The Company

recorded an early extinguishment loss of $996 thousand, which was included in “Other income (loss), net” on the Consolidated Statements of Operations. As of December 31, 2020, the outstanding principal balance under the Midcap loan agreement was $11.9 million.

In 2019, the Company paid fees of approximately $298 thousand in connection with the origination of the Midcap Loan Agreement. These fees were deferred and recorded as a direct deduction from the carrying value of the loan payable and were amortized to interest expense over the expected remaining term of the agreement.

Pacific Western

For the year ended December 31, 2019, the Company recorded an early extinguishment loss of $555 thousand related to the repayment of the Pacific term loan, which was included in “Other income (loss), net” on the Consolidated Statements of Operations.

In May 2018, Pacific issued a standby letter of credit of $3.8 million for the benefit of the Company’s landlord, securing certain Company obligations relating to tenant improvements. This letter of credit was transferred to J.P. Morgan during the year ended December 31, 2021. See Note 2, “Summary of Significant Accounting Policies” for additional details. As of December 31, 2020, the outstanding letter of credit was $3.8 million, for which the Company held $4.0 million of restricted cash as collateral.

Convertible Notes

In March 2020 and April 2020, the Company issued convertible promissory notes for an aggregate principal amount of $6.4 million. Under certain conditions, the principal was convertible into an amount of equity with a fair value that exceeded the amount of the notes’ principal on the conversion date. This feature of the notes was accounted for separately at fair value as a derivative liability. These notes converted to 1,203,231 shares of Series D Preferred Stock in September 2020. Upon conversion of the notes, the Company recorded the $1.6 million fair value of the derivative liability as equity on the Consolidated Balance Sheet. Changes in the fair value of the derivative were recorded in “Other income (loss), net” in the Consolidated Statements of Operations at a loss of $484 thousand during the year ended December 31, 2020.

Notes Payable for Tenant Improvement Allowance

In 2018, the Company borrowed $992 thousand, which was available as part of the Station 41 lease from its landlord for use on tenant improvements (see Note 8, “Commitments and Contingencies” for additional details). Under the terms of the lease, the note will be repaid over a 10-year period at an 8% interest rate.

Notes payable consisted of the following:


	December 31,
(in thousands)	2021		2020
Current portion of notes payable	$	90	$	1,073
Long-term portion of notes payable	633		11,615
Less: unamortized issuance costs	—		(201)
Notes payable, net	$	723	$	12,487

The following table presents information regarding the Company’s debt principal repayment obligations as of December 31, 2021:


(in thousands)	Amount
2022	$	90
2023	97
2024	105
2025	114
2026	124
Thereafter	193
Total debt principal payments	$	723

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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+ Details

Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Lease Obligations

The Company has entered into various long-term real estate leases primarily related to office, research and development and operating activities. For the years ended December 31, 2021, 2020 and 2019, total rent expense was $6.4 million, $3.7 million and $3.7 million, respectively. The leases described below are classified as operating leases.

Komas Lease

In August 2016, the Company entered into a new facilities lease, with the right of use and payments beginning in January 2017. The term of the lease is 7 years. This lease includes provisions for escalating rent payments. This lease included an allowance for tenant improvements. In conjunction with the allowance for tenant improvements, the Company recorded a lease incentive obligation of $847 thousand. As of December 31, 2021, the unamortized lease incentive obligation was $252 thousand.

Station 41 Lease

In August 2017, the Company entered into a new facilities lease, with the right of use beginning in December 2017 and payments beginning in June 2018. The term of the lease is 10 years, with one five-year renewal option. This lease includes provisions for escalating rent payments. This lease included an allowance for tenant improvements of $4.0 million, the full amount of which has been drawn. As of December 31, 2021, the related unamortized lease incentive obligation was $2.4 million.

In 2018, the Company elected to draw a tenant improvement loan of $992 thousand available under the Station 41 lease. This loan is incorporated into and acts to increase the base rent over the remaining life of the lease. The increase in rent includes a charge for interest, which accrues on the principal amount outstanding at a rate equal to 8%. The Company accounts for this additional tenant improvement loan as a note payable on the Consolidated Balance Sheets with the current portion included in the Current Portion of Notes Payable.

In 2019, the Company amended the Station 41 lease to include additional space in the conjoining unit with the right to use the new space beginning in June 2020 for an additional seven years. This amendment for the extra space includes provisions for escalating rent payments.

Milpitas Lease

In August 2019, the Company entered into a new facilities lease, with the right of use and payments beginning in August 2019. The term of the lease is 9 years. This lease includes provisions for escalating rent payments.

Station 56 Lease

In January 2021, the Company entered into a new facilities lease with 91,478 square feet adjacent to the Station 41 lease. The right of use began in August 2021 and the term of the lease is approximately 11 years with a five-year renewal option. This lease includes provisions for escalating rent payments. The lease includes a tenant improvement allowance of up to approximately $10.1 million. As of December 31, 2021, $8.5 million of the tenant improvement allowance had been utilized. This balance has not yet been collected and was recorded on the

Consolidated Balance Sheet in “Other receivables.” As of December 31, 2021, the related unamortized lease incentive obligation was $8.1 million.

Future Minimum Lease Payments

Future minimum commitments as of December 31, 2021 under the Company’s lease agreements are as follows:


(in thousands)	Amount
2022	$	3,977
2023	7,053
2024	7,325
2025	7,513
2026	7,739
Thereafter	26,448
Total minimum payments	$	60,055

Contract Obligations

As of December 31, 2021, the Company had $61.2 million of future purchase obligations, $36.7 million of which are expected to be payable within the next year. These commitments primarily related to third-party research services, materials and supplies for research and development activities and capital expenditures.

Indemnification

The Company has agreed to indemnify its officers and directors for certain events or occurrences, while the officer or director is or was serving at the Company’s request in such capacity. The Company purchases directors and officers liability insurance coverage that provides for reimbursement to the Company for covered obligations and this is intended to limit the Company’s exposure and enable it to recover a portion of any amounts it pays under its indemnification obligations. The Company had no liabilities recorded for these agreements as of December 31, 2021 and December 31, 2020, as no amounts are probable or estimable.

Employee Agreements

The Company has signed employment agreements with certain key employees pursuant to which, if their employment is terminated following a change of control of the Company, the employees are entitled to receive certain benefits, including accelerated vesting of equity incentives.

Legal Matters

The Company is not currently a party to any material litigation or other material legal proceedings. The Company may, from time to time, be involved in various legal proceedings arising in the normal course of business. An unfavorable resolution of any such matter could materially affect the Company’s future financial position, results of operations or cash flows.

Convertible Preferred Stock

12 Months Ended

Dec. 31, 2021

Temporary Equity [Abstract]

Convertible Preferred Stock

The Company has issued preferred stock as part of various financing events. In April 2021, all outstanding shares of convertible preferred stock converted into 115,598,018 shares of Class A common stock as part of the IPO (see Note 10, “Common Stock” for additional details on the IPO). There was no convertible preferred stock outstanding as of December 31, 2021.

No convertible preferred stock was issued during the year ended December 31, 2021. The Company issued 36,898,548 shares of Series D convertible preferred stock for an aggregate purchase price of $245.9 million ($6.71 per purchased share and $5.37 per converted share) during the year ended December 31, 2020. As part of the Series D issuance, outstanding convertible notes were converted into Series D shares. See “Note 7, Notes Payable” for additional details on the convertible notes. As of December 31, 2020, there were no cumulative dividends owed or in arrears on the preferred stock.

Convertible preferred stock consisted of the following as of December 31, 2020:



(in thousands except share data)	Preferred Shares Authorized	Preferred Shares Issued and Outstanding	Carrying Value		Liquidation Preferences		Shares of Common Stock Issuable Upon Conversion
Series A	30,078,402	29,965,754	$	21,281	$	21,281	29,965,754
Series A-1	4,975,521	4,975,520	—		—		4,975,520
Series B	21,497,667	21,471,898	59,913		60,000		21,471,898
Series C	18,956,354	18,776,345	119,915		122,058		22,286,298
Series D	45,926,769	36,898,548	247,203		247,511		36,898,548
Total convertible preferred stock	121,434,713	112,088,065	$	448,312	$	450,850	115,598,018

The Company’s convertible preferred stock was classified outside of stockholders’ equity (deficit) on the Consolidated Balance Sheets because the holders of such shares have liquidation rights in the event of a deemed liquidation that, in certain situations, are not solely within the control of the Company and would require the redemption of the then-outstanding convertible preferred stock. The convertible preferred stock was not redeemable, except in the event of a deemed liquidation event.

Common Stock	12 Months Ended
Common Stock	Dec. 31, 2021
Equity [Abstract]
Common Stock	Common Stock Each share of Class A common stock entitles the holder to one vote per share and each share of Class B common stock entitles the holder to 10 votes per share on all matters submitted to a vote of the Company’s stockholders. Common stockholders are entitled to receive dividends, as may be declared by the Company’s board of directors. As of December 31, 2021 and December 31, 2020, no dividends had been declared. Initial Public Offering On April 20, 2021, the Company closed its IPO and issued 27,878,787 shares of its Class A common stock at a price of $18.00 per share for net proceeds of $462.4 million, after deducting underwriting discounts and commissions of $35.1 million and other offering costs of $4.3 million. In connection with the IPO, all shares of convertible preferred stock converted into 115,598,018 shares of Class A common stock. Stock Split In April 2021, the Board of Directors approved a 1.5-for-1 forward stock split of the Company’s common and convertible preferred stock. Each shareholder of record on April 9, 2021 received 1.5 shares for each then-held share. The split proportionally increased the authorized shares and did not change the par values of the Company’s stock. The split affected all stockholders uniformly and did not affect any stockholder's ownership percentage of the Company's shares of common stock. All shares and per share amounts presented within these Consolidated Financial Statements were adjusted to reflect the forward stock split for all periods presented. Class A and B Common Shares Authorization In April 2021, the Company’s Board of Directors authorized two classes of common stock, Class A and Class B. The rights of the holders of Class A and B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to 10 votes per share and is convertible at any time into one share of Class A common stock. All Class B common stock is held by Christopher Gibson, Ph.D., our Chief Executive Officer (CEO), or his affiliate. As of December 31, 2021, Dr. Gibson and his affiliate held outstanding shares of Class B common stock representing approximately 37% of the voting power of the Company’s outstanding shares. This voting power may increase over time as Dr. Gibson vests in and exercises equity awards outstanding. If all the equity awards held by Dr. Gibson had been fully vested and exercised and exchanged for shares of Class B common stock as of December 31, 2021, Dr. Gibson and his affiliate would hold approximately 40% of the voting power of the Company’s outstanding shares. As a result, Dr. Gibson will be able to significantly influence any action requiring the approval of Recursion stockholders, including the election of the board of directors; the adoption of amendments to the Company’s certificate of incorporation and bylaws; and the approval of any merger, consolidation, sale of all or substantially all of the Company’s assets, or other major corporate transaction.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Collaborative Development Contracts	12 Months Ended
Collaborative Development Contracts	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Collaborative Development Contracts	Collaborative Development Contracts Bayer AG In August 2020, the Company entered into a Research Collaboration and Option Agreement (the Bayer Agreement) with Bayer AG (Bayer) for a five-year term pursuant to which the Company and Bayer may initiate approximately 10 research projects related to fibrosis across multiple organ systems, including the lung, liver and heart. Under the agreement, the Company contributed compounds from its proprietary library and Bayer contributed compounds from its proprietary library and will contribute scientific expertise throughout the collaboration. Under each research project, the Company will work with Bayer to identify potential candidates for development. Under the agreement, Bayer has the first option for licenses to potential candidates. Each such license could potentially result in option exercise fees and development and commercial milestone payments payable to the Company, with an aggregate value of up to approximately $100.0 million (for an option on a lead series) or up to approximately $120.0 million (for an option on a development candidate), as well as tiered royalties for each such license, ranging from low- to mid-single digit percentages of sales, depending on commercial success. Under the terms of the agreement, the Company received a non-refundable upfront payment of $30.0 million, which was recorded as unearned revenue on the Consolidated Balance Sheet. The Company determined that it has one performance obligation under the agreement, which is to perform research and development services for Bayer. Recursion determined the transaction price to be the $30.0 million upfront payment received and allocated the amount to the single performance obligation. The Company is recognizing revenue over time by measuring progress towards completion of the performance obligation. This method of recognizing revenue requires Company to make estimates of the total time to provide the services required under the performance obligation. A significant change in these estimates could have a material effect on the timing and amount of revenue recognized in future periods. For the years ended December 31, 2021 and 2020, the Company recognized $10.0 million and $3.3 million, respectively, of revenue resulting from the collaboration. There was $10.0 million and $6.7 million of current and non-current unearned revenue, respectively, remaining as of December 31, 2021. The allocation of unearned revenue between current and non-current is based on Recursion’s estimates of when the Company expects to incur the related costs. Takeda Pharmaceuticals In October 2017, the Company entered into a research collaboration with Takeda Pharmaceutical Company Limited. For the year ended December 31, 2019, the Company recognized $1.3 million of revenue related to the collaboration. The Company does not expect future revenues from this collaboration.

Stock-Based Compensation

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

In April 2021, the Board of Directors and the stockholders of the Company adopted the 2021 Equity Incentive Plan (the 2021 Plan). Under the 2021 Plan, 16,186,000 shares of Class A common stock were reserved. Additionally, shares were reserved for all outstanding awards under the previous 2016 Plan. The Company may grant stock options, RSUs, stock appreciation rights, restricted stock awards and other forms of stock-based compensation.

As of December 31, 2021, 14,677,116 shares of Class A common stock were available for grant.

The following table presents the classification of stock-based compensation expense for stock options and RSUs for employees and non-employees within the Consolidated Statements of Operations:


	Years ended December 31,
(in thousands)	2021		2020		2019
Research and development	$	4,841	$	1,777	$	915
General and administrative	8,989		2,059		470
Total	$	13,830	$	3,836	$	1,385

Stock Options

Stock options generally vest over four years and expire no later than 10 years from the date of grant. Stock option activity during the year ended December 31, 2021 was as follows:


(in thousands except share data)	Shares	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (In Years)	Aggregate Intrinsic Value
Outstanding as of December 31, 2020	20,937,443	$	1.85	8.5	$	12,956
Granted	3,538,555	12.79
Cancelled	(1,266,968)	2.59
Exercised	(4,017,316)	1.30			36,773
Outstanding as of December 31, 2021	19,191,714	$	3.78	8.2	$	260,762
Exercisable as of December 31, 2021	7,921,361	$	1.89	7.2	$	121,201

The fair value of options granted to employees is calculated on the grant date using the Black-Scholes option valuation model. The weighted-average grant-date fair values of stock options granted during the years ended December 31, 2021, 2020 and 2019 were $7.66, $1.50 and $1.34, respectively.

The following weighted-average assumptions were used to calculate the grant-date fair value of stock options:


	Years ended December 31,
	2021		2020		2019
Expected term (in years)	6.3		6.2		6.2
Expected volatility	65	%	67	%	64	%
Expected dividend yield	—		—		—
Risk-free interest rate	1.1	%	1.0	%	2.3	%

In February 2021, the Company granted 150,000 shares of stock options with a performance and service condition that had a fair value of $358 thousand. The grant was fully expensed during the year ended December 31, 2021 as the performance and service conditions were met.

In March 2020, the Company granted 1,500,000 shares of stock options with performance, market and service conditions. At grant date, the Company estimated that the fair value of the options was approximately $2.0 million. For the years ended December 31, 2021 and 2020, $1.7 million and zero of expense was recorded, respectively. For the year ended December 31, 2021, several of the award’s conditions were met. For the year ended December 31, 2020, no expense was recorded as the performance conditions were not considered probable.

As of December 31, 2021, $31.7 million of unrecognized compensation cost related to stock options is expected to be recognized as expense over approximately the next three years.

RSUs

In April 2021, Recursion redesigned certain aspects of its long-term incentive program. As a result, equity awards granted to employees since the redesign generally consist of a combination of stock options and RSUs. RSUs awarded to employees pursuant to the 2021 Plan generally vest over four years. The weighted-average grant-date fair value of RSUs generally is determined based on the number of units granted and the quoted price of Recursion’s common stock on the date of grant.

The following table summarizes Recursion’s RSU activity during the year ended December 31, 2021:


	Stock units	Weighted-average grant date fair value
Outstanding as of December 31, 2020	—	$	—
Granted	496,312	23.44
Vested	(13,725)	25.47
Forfeited	(4,451)	22.21
Outstanding as of December 31, 2021	478,136	$	23.40

The fair market value of RSUs vested was $312 thousand during the year ended December 31, 2021. As of December 31, 2021, $9.9 million of unrecognized compensation cost related to RSUs is expected to be recognized as expense over approximately the next three years.

Employee Share Purchase Plan (ESPP)

In April 2021, the Board of Directors and stockholders of the Company adopted the 2021 Employee Stock Purchase Plan (the ESPP). Under the ESPP, 3,238,000 shares of Class A common stock were reserved. The ESPP has consecutive six-month offering periods. The offering periods are scheduled to start on the first trading day on or after May 20 and November 20 of each year, except the first offering period, which commenced on the plan effectiveness date and will end on the first trading day on or after November 20, 2021. The second offering period commenced on the first trading day on or after November 20, 2021. The per share purchase price is 85% of the lower of the fair market value on (1) the first trading day of the offering period or (2) the exercise date.

The fair value of the ESPP grants is measured at grant date. The fair value is determined considering the purchase discount and the fair value of the look-back feature. Black-Scholes pricing models are used to calculate the fair value of the look-back feature. The weighted-average assumptions used in the Black-Scholes models were as follows:


	Year ended December 31, 2021
Expected term (in years)	0.5
Expected volatility	61	%
Expected dividend yield	—
Risk-free interest rate	0.06	%

For the year ended December 31, 2021, 106,365 shares were issued under the ESPP. For the year ended December 31, 2021, Recursion recognized expense of $731 thousand. As of December 31, 2021, $522 thousand of unrecognized ESPP compensation cost is expected to be recognized as expense over approximately the next five months.

Warrants

In connection with the execution of the Pacific loan agreement (see Note 7, “Notes Payable” for additional details), the Company issued to Pacific fully vested warrants to purchase 84,486 shares of Series A Preferred Stock (Series A warrants) at a purchase price of $0.71 per share. In May 2017, the Company drew on additional borrowing capacity under the Pacific loan agreement, which required the Company to issue additional fully vested warrants for

28,161 shares of Series A Preferred Stock at a purchase price of $0.71 per share. These Series A warrants were exercised in April 2021.

In July 2018, the Company drew on additional borrowing capacity under an amended agreement. This required the Company to issue fully vested warrants to purchase 25,762 shares of Series B Preferred Stock (Series B warrants) at a purchase price of $2.79 per share. These Series B warrants were exercised in April 2021.

In January 2020, the Company issued warrants to purchase 213,646 shares of Series C Preferred Stock (Series C warrants) at a purchase price of $5.49 per share as part of a services agreement. These Series C warrants were exercised in October 2021. The grant date fair value was $4.10 per share.

The FASB has issued accounting guidance on the classification of freestanding warrants and other similar instruments for shares that are redeemable (either puttable or mandatorily redeemable). The guidance requires liability classification for certain warrants that are exercisable into convertible preferred stock. The initial fair values of the Series A and B warrants were recorded as debt issuance costs, which resulted in a reduction in the carrying value of the debt and subsequent accretion. The Company remeasured the Series A and B warrants on each Consolidated Balance Sheet date. The change in valuation was recorded in the Consolidated Statements of Operations in “Other income (loss), net.” The liability was recorded to equity upon the exercise of the Series A and B warrants.

The Series C warrants’ compensation expense was recorded in general and administrative expense ratably over the requisite service period based on the award’s fair value at the date of grant. These warrants were classified as equity as they were issued to non-employees for services and the convertible preferred stock was not redeemable.

The following is a summary of the changes in the Company’s Series A and B warrant liability balance during the years ended December 31, 2021 and 2020:


(in thousands)
Balance as of December 31, 2018	$	139
Decrease in fair value of warrants	(11)
Balance as of December 31, 2019	$	128
Decrease in fair value of warrants	(3)
Balance as of December 31, 2020	$	125
Increase in fair value of warrants	2,215
Recorded in equity upon exercise	(2,340)
Balance as of December 31, 2021	$	—

Employee benefit plans	12 Months Ended
Employee benefit plans	Dec. 31, 2021
Retirement Benefits [Abstract]
Employee benefit plans	Employee benefit plansThe Company has an employee benefit plan under Section 401(k) of the Internal Revenue Code. The plan allows employees to make contributions up to a specified percentage of their compensation. The Company is currently contributing up to 4% of employee base salary, by matching 100% of the first 4% of annual base salary contributed by each employee. Employer expenses were $2.1 million, $1.1 million and $931 thousand during the years ended December 31, 2021, 2020 and 2019, respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

The Company did not record any income tax expense for the years ended December 31, 2021, 2020 and 2019. The Company has historically incurred operating losses and maintains a full valuation allowance against its net deferred tax assets. Foreign taxes were insignificant for the year ended December 31, 2021.

The provision for income taxes consisted of the following components (all deferred):


	Years ended December 31,
(in thousands)	2021		2020		2019
Federal	$	47,138	$	20,707	$	15,555
State	(684)		947		1,517
Other	149		—		—
Change in valuation allowance	(46,603)		(21,654)		(17,072)
Total	$	—	$	—	$	—

The Company’s effective tax rate of 0% for the years ended December 31, 2021, 2020 and 2019 differs from the statutory U.S. federal rate as follows:


	Years ended December 31,
	2021		2020		2019
Statutory tax rate	21.0	%	21.0	%	21.0	%
R&D credit generation	3.2	%	3.3	%	3.6	%
Orphan drug credit generation	1.1	%	1.0	%	1.5	%
Uncertain tax positions	(0.4)	%	(0.4)	%	(0.5)	%
Other non-deductible expenses	0.4	%	(1.1)	%	(0.4)	%
Change in valuation allowance	(25.3)	%	(23.8)	%	(25.2)	%
Effective tax rate	—	%	—	%	—	%

The tax effects of temporary differences that give rise to significant components of the deferred tax assets are as follows:


	December 31,
(in thousands)	2021		2020
Deferred tax assets
Reserves and accruals	$	5,922	$	1,906
Net operating loss carryforwards	76,954		43,954
Stock-based compensation	1,732		356
Research and development credit carryforwards	16,742		9,529
Deferred rent	3,132		—
Definite lived intangibles	1,005		1,114
Other	426		217
Gross deferred tax assets	105,913		57,076
Valuation allowance	(102,041)		(55,439)
Net deferred tax asset	3,872		1,637
Deferred tax liabilities
Depreciable assets	(2,089)		(1,637)
Tenant allowance receivable	(1,783)		—
Deferred tax liabilities	(3,872)		(1,637)
Net deferred tax asset	$	—	$	—

As of December 31, 2021 and 2020, the Company recorded the portion of its deferred tax assets that was determined to meet the more likely than not threshold. A valuation allowance was recorded against the remaining deferred tax assets. Significant judgment is required in determining the Company’s provision for income taxes, recording valuation allowances against deferred tax assets and evaluating the Company’s uncertain tax positions. Due to net losses since inception and the uncertainty of realizing the deferred tax assets, the Company has a full valuation allowance against its net deferred tax assets. To the extent that the Company generates positive income and expects, with reasonable certainty, to continue to generate positive income, the Company may release all, or a portion of, the valuation allowance in a future period. This release would result in the recognition of all, or a portion

of, the Company’s deferred tax assets, resulting in a decrease to income tax expense for the period such release is made. As of December 31, 2021 and 2020, the Company’s valuation allowance was $102.0 million and $55.4 million, respectively, which increased by approximately $46.6 million and $21.7 million during the years ended December 31, 2021 and 2020, respectively.

NOLs and tax credit carry-forwards are subject to review and possible adjustment by the Internal Revenue Service (“IRS”) and may become subject to annual limitation due to ownership changes that have occurred previously or that could occur in the future under Section 382 of the Internal Revenue Code, as amended and similar state provisions. These ownership changes may limit the amount of carryforwards that can be utilized annually to offset future taxable income. In general, an ownership change, as defined by Section 382, results from transactions increasing the ownership of certain shareholders or public groups in the stock of a corporation by more than 50% over a three-year period. The Company has not conducted a study to assess whether a change of control has occurred or whether there have been multiple changes of control since inception due to the significant complexity and cost associated with such a study. If the Company has experienced a change of control, as defined by Section 382, at any time since inception, utilization of the net operating loss carryforwards or research and development tax credit carryforwards would be subject to an annual limitation under Section 382, which is determined by first multiplying the value of the Company’s stock at the time of the ownership change by the applicable long-term tax-exempt rate and then could be subject to additional adjustments, as required. Any limitation may result in expiration of a portion of the net operating loss carryforwards or research and development tax credit carryforwards before utilization. Further, until a study is completed and any limitation is known, no amounts are being presented as an uncertain tax position.

As of December 31, 2021 and 2020, the Company had federal NOL carryforwards of $353.1 million and $193.8 million, respectively, available to reduce taxable income, of which $18.6 million expire beginning 2036 and $334.4 million do not expire. The Company had state NOL carryforwards of $63.0 million and $77.4 million as of December 31, 2021 and 2020, respectively, available to reduce future state taxable income, of which $5.3 million expire beginning 2031 and $57.7 million not expire.

As of December 31, 2021, the Company also had federal and state research and development credit carryforwards of $16.5 million and $2.2 million respectively. As of December 31, 2020, the Company had federal and state research and development credit carryforwards of $6.7 million and $2.2 million, respectively. The federal research and development credit carryforwards expire beginning in 2036 and the state credit carryforwards expire beginning in 2030. The Company also had federal Orphan Drug credits of $3.8 million and $1.8 million as of December 31, 2021 and 2020, respectively, which will begin expiring in 2036. The Company had reserves for uncertain tax positions against these credit carryforwards of $1.9 million and $1.1 million as of December 31, 2021 and 2020 respectively.

The Company recognizes benefits of uncertain tax positions if it is more likely than not that such positions will be sustained upon examination based solely on their technical merits, as the largest amount of benefit that is more likely than not to be realized upon the ultimate settlement. It is the Company’s policy to include penalties and interest expense related to income taxes as a component of Other income (loss), net as necessary.

The Company files income tax returns in the United States, Canada, Utah, California and Massachusetts. The Company is not currently under examination in any of these jurisdictions. The Company is subject to income tax examinations on all federal returns since the 2018 tax return.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Net Loss Per Share

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Net Loss Per Share

For the year ended December 31, 2021, Recursion calculated net loss per share of Class A and Class B common stock using the two-class method. Basic net loss per share is computed using the weighted-average number of shares outstanding during the period. Diluted net loss per share is computed using the weighted-average number of shares and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities consist of stock options and other contingently issuable shares. For periods presented in which the Company reports a net loss, all potentially dilutive shares are anti-dilutive and as such are excluded from the calculation.

The rights, including the liquidation and dividend rights, of the holders of the Company’s Class A and Class B common stock are identical, except with respect to voting. As a result, the undistributed earnings for each period are allocated based on the contractual participation rights of the Class A and Class B common shares as if the earnings for the period had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis and the resulting amount per share for Class A and Class B common stock was the same during the year ended December 31, 2021.

Recursion issued certain shares of convertible preferred stock that were outstanding until April 2021 and were concluded to be participating securities. For the years ended December 31, 2020 and 2019, there was only one class of common stock outstanding. Due to the presence of participating securities, Recursion calculated net loss per share during the years ended December 31, 2020 and 2019 using the more dilutive of the treasury stock or the two-class method. For periods presented in which the Company reports a net loss, the losses are not allocated to the participating securities. The preferred stock converted to common stock in April 2021 as part of the Company’s IPO. See Note 10, “Common stock” for additional details.

The following tables set forth the computation of basic and diluted net loss per share of Class A and Class B common stock during 2021:


	Year ended
	December 31, 2021
(in thousands, except share amount)	Class A		Class B
Numerator:
Allocation of undistributed earnings	$	(172,399)	$	(14,080)
Denominator:
Weighted average common shares outstanding	115,883,920		9,464,190
Net loss per share, basic and diluted	$	(1.49)	$	(1.49)

The following table sets forth the computation of basic and diluted net loss per share during 2020 and 2019:


	Years ended December 31,
(in thousands, except share amounts)	2020		2019
Numerator:
Net loss	$	(87,006)	$	(61,879)
Denominator:
Weighted average common shares outstanding	21,781,386		21,570,265
Net loss per share, basic and diluted	$	(3.99)	$	(2.87)

For the years ended December 31, 2021, 2020 and 2019, the Company reported a net loss and therefore basic and diluted loss per share are the same for all periods. The Company excluded the following potential common shares from the computation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect:


	Years ended December 31,
	2021	2020	2019
Convertible preferred stock	34,615,890	90,684,675	78,699,495
Stock options	15,381,210	3,636,400	8,677,652
Warrants	151,745	117,342	138,409
Total	50,148,845	94,438,417	87,515,556

Fair Value Measurements

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

The fair value hierarchy consists of the following three levels:

•Level 1 — Valuations based on unadjusted quoted prices in active markets for identical assets that the company has the ability to access;

•Level 2 — Valuations based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuations in which all significant inputs are observable in the market; and

•Level 3 — Valuations using significant inputs that are unobservable in the market and include the use of judgment by the company's management about the assumptions market participants would use in pricing the asset or liability.

The Company measured the Series A and B preferred stock warrant liabilities at fair value using a Black-Scholes option-pricing model. See Note 12, “Stock-based Compensation” for details on the valuation of the warrant liabilities and a reconciliation of the balance.

The following tables summarize the Company’s assets and liabilities that are measured at fair value on a recurring basis:


			Basis of fair value measurement
(in thousands)	December 31, 2021		Level 1		Level 2		Level 3
Assets
Cash equivalents:
Money market funds	$	155,731	$	—	$	155,731	$	—
Commercial paper	12,000		—		12,000		—
Corporate bonds	200		—		200		—
Restricted cash	10,233		10,233		—		—
Investments:
U.S. government debt	19,927		—		19,927		—
Corporate bonds	61,177		—		61,177		—
Certificates of deposit	21,440		—		21,440		—
Commercial paper	128,902		—		128,902		—
Total assets	$	409,610	$	10,233	$	399,377	$	—


			Basis of fair value measurement
(in thousands)	December 31, 2020		Level 1		Level 2		Level 3
Assets
Restricted cash	$	5,041	$	5,041	$	—	$	—
Total assets	$	5,041	$	5,041	$	—	$	—
Liabilities
Warrant liability	$	125	$	—	$	—	$	125
Total liabilities	$	125	$	—	$	—	$	125

In addition to the financial instruments that are recognized at fair value on the Consolidated Balance Sheet, the Company has certain financial instruments that are recognized at amortized cost or some basis other than fair value. The carrying amount of these instruments are considered to be representative of their approximate fair values. Additionally, Recursion has short-term financial instruments including accounts receivable and accounts payable whose carrying amounts are considered representative of their approximate fair values.

The following tables summarize the Company’s financial instruments that are not measured at fair value:


	Book values				Fair values
(in thousands)	December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020
Liabilities
Current portion of notes payable	$	90	$	1,073	$	90	$	1,073
Notes payable, net of current portion	633		11,414		633		11,414
Total liabilities	$	723	$	12,487	$	723	$	12,487

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 31, 2021
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions In December 2017, the Company entered into a loan agreement with its CEO to provide a loan of $595 thousand. The loan had a seven-year term. As of December 31, 2021 and 2020, no amount remained outstanding on the loan as the balance was fully paid during the year ended December 31, 2020. The acquisition of Vium was a related party transaction due to the fact that Vium was affiliated with certain investors of the Company. See Note 3, “Acquisitions” for additional details on the acquisition.

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsIn January 2022, Recursion received a $150.0 million upfront payment related to the Company’s collaboration with Roche and Genentech, collectively referred to as Roche. Recursion will work with Roche to identify targets and medicines in key areas of neuroscience and in an oncology indication. Recursion is eligible for additional milestone payments based on performance progress of the collaboration. Under the collaboration, Roche may initiate up to 40 programs, each of which, if successfully developed and commercialized, could yield more than $300.0 million in development, commercialization and net revenue milestones for Recursion, as well as tiered royalties on net revenue. Recursion is currently analyzing the accounting impact of this agreement.

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2021
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires the Company to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ from those amounts. Significant estimates and assumptions include the estimated progress towards the satisfaction of performance obligations to record revenue, accrued research and development expenses and the fair value of stock-based awards issued.
Basis of Presentation	Basis of Presentation The consolidated financial statements include the accounts of Recursion and its majority-owned subsidiaries that the Company controls. Intercompany balances and transactions have been eliminated in consolidation. In April 2021, the Company completed a 1.5-for-1 forward stock split of common and convertible preferred stock. All shares presented within these consolidated financial statements were adjusted to reflect the forward stock split for all periods presented. See Note 10, “Common Stock” for additional details. In April 2021, the Company’s Board of Directors authorized two classes of common stock, Class A and Class B. Certain shares of Class A were exchanged for Class B on a one-for-one basis. The creation and issuance of the Class B common stock did not affect the loss per share for the Class A or Class B shares for any period. The Company presented the 2021 net loss per share amounts as if the authorization and exchange occurred as of the start of the 2021 reporting period. All share amounts presented prior to the authorization are referred to as Class A common stock.
Segment Information	Segment Information Recursion operates as a single operating segment. The Company’s chief operating decision maker is its chief executive officer, who allocates resources and assesses performance at the consolidated level.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents and marketable securities. These financial instruments are primarily held at two U.S. financial institutions that management believes are of high credit quality. Recursion’s primary bank accounts significantly exceed the federally insured limits. The Company is dependent on third-party suppliers for certain research and development activities including preclinical and clinical testing. In particular, the Company relies and expects to continue to rely on a small number of these suppliers. These activities could be adversely affected by a significant interruption to Recursion’s third-party suppliers including a delay in the Company’s preclinical and clinical testing and the supply of certain consumable products and compounds.
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents includes bank deposits held in checking accounts, money market funds, commercial paper, corporate bonds and certificates of deposits with maturities of three months or less at the time of purchase. The Company is required to maintain a cash balance in a collateralized account to secure the Company’s credit cards. Additionally, the Company holds restricted cash related to an outstanding letter of credit issued by J.P. Morgan, which was obtained to secure certain Company obligations relating to tenant improvements
Investments	Investments Investments consist primarily of marketable debt securities including corporate debt securities, government debt securities, commercial paper and certificates of deposit. Investments that have a readily determinable fair value are recorded at fair value. Investments in marketable debt securities are classified as available-for-sale and are recorded at fair value with any unrealized holding gains or losses, net of tax, included in accumulated other comprehensive income (AOCI) on the Consolidated Balance Sheet. Once realized, the gains and losses are recognized in earnings and included in other income (loss), net in the Consolidated Statement of Operations. Realized gains and losses on sales of investments are computed using the first-in, first-out method. The Company reviews investments for declines in fair value below cost basis each quarter or whenever circumstances indicate the cost basis of an asset may not be recoverable and assesses whether the decline was due to credit-related or other factors. The evaluation is based on a number of factors, including the extent to which fair value is below cost basis; adverse conditions related specifically to the security, such as any changes to the credit rating of the security; and the intent to sell, or whether Recursion will more likely than not be required to sell the security before recovery of its amortized cost basis. The assessment of whether a security is impaired could change in the future based on new developments or changes in assumptions related to that particular security.
Property and Equipment	Property and Equipment Property and equipment is carried at acquisition cost less accumulated depreciation. The cost of normal, recurring, or periodic repairs and maintenance activities related to property and equipment are expensed as incurred.
Accounting for the Impairment of Long-Lived Assets	Accounting for the Impairment of Long-Lived Assets The Company reviews the carrying amounts of long-lived assets, other than goodwill and intangible assets not subject to amortization, for potential impairment when events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. In evaluating recoverability, Recursion groups assets and liabilities at the lowest level such that the identifiable cash flows relating to the group are largely independent of the cash flows of other assets and liabilities. The Company then compares the carrying amount of the asset or asset group with the projected undiscounted future cash flows to be generated by the asset or asset group. In the event impairment exists, an impairment charge is recorded as the amount by which the carrying amount of the asset or asset group exceeds the fair value.
Accruals for Research Research and Development Expenses and Clinical Trials	Accruals for Research and Development Expenses and Clinical Trials As part of the process of preparing its financial statements, the Company is required to estimate its expenses resulting from obligations under contracts with vendors, clinical research organizations and consultants. The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment terms that do not match the periods over which materials or services are provided for under such contracts. The Company’s policy is to record these expenses during the period in which services are performed and efforts are expended. The Company determines accrual estimates by taking into account discussion with applicable personnel and outside service providers as to the progress of clinical trials, or the services completed. During the course of a clinical trial, the Company adjusts its clinical expense recognition if actual results differ from its estimates. The Company makes estimates of its accrued expenses as of each Consolidated Balance Sheet date based on the facts and circumstances known to it at that time. The actual expenses could be different from the amounts accrued. Research and Development Expenses Research and development expenses comprise costs incurred in performing research and development activities, including drug discovery and development studies, external research and the purchase of laboratory supplies. The Company recognizes expenses associated with third-party contracted services based on the completion of activities as specified in the applicable contracts. Upon the termination of contracts with third-parties, the Company’s financial obligations are generally limited to costs incurred or committed to date. Any advance payments for goods or services to be used or rendered in future research and product development activities are classified as prepaid expenses until the goods or services are rendered.
Leases	Leases The Company rents facilities under operating lease agreements and recognizes rent expense on a straight-line basis over the term of the lease. Certain lease agreements contain tenant improvement allowances, rent holidays, scheduled rent increases and renewal options. Rent holidays and scheduled rent increases are included in the determination of rent expense. Renewals are generally not included in the determination of the lease term unless they are determined to be reasonably assured at the inception of the lease. The Company recognizes rent expense beginning on the date the Company obtains the legal right to use and control the leased space. Tenant improvement allowances are accounted for as a lease incentive obligation, which is amortized as a reduction to rent expense over the lease term.
Revenue Recognition	Revenue Recognition Grant Revenue The Company recognizes grant revenue in the period in which the revenue is earned in accordance with the grant agreement, which is the period in which corresponding reimbursable expenses under the grant agreement are incurred. During the year ended December 31, 2018, the Company was awarded a grant by the National Institutes of Health, which included potential funding of $1.4 million. Revenue recognized related to this grant during the years ended December 31, 2021, 2020 and 2019 was $178 thousand, $549 thousand and $385 thousand, respectively. As of December 31, 2021, $279 thousand of the potential funding still remained. During the year ended December 31, 2017, the Company was awarded a private grant by the Bill and Melinda Gates Foundation. On November 17, 2017, the Bill and Melinda Gates Foundation distributed $546 thousand to the Company pursuant to such grant. Revenue was recognized as qualifying activities were performed. There was no remaining unearned revenue balance related to this grant as of December 31, 2019. Revenue recognized related to grant during the year ended December 31, 2019 was $223 thousand. As of December 31, 2019, there were no remaining amounts related to this grant available for funding. Operating Revenue Operating revenue has primarily been generated through funded research and development agreements (see Note 11, “Collaborative Development Contracts” for additional details). Revenue for research and development agreements is recognized as the Company satisfies a performance obligation by transferring the promised services to the customer. The Company recognizes revenue over time by measuring the progress toward complete satisfaction of the relevant performance obligation using an appropriate input or output method based on the services promised to the customer. This method of recognizing revenue requires the company to make estimates to determine the progress towards completion. A significant change in these estimates could have a material effect on the timing and amount of revenue recognized in future periods. The Company may also provide options in our agreements under which a partner could request that Recursion provide additional services in the future. Recursion evaluates whether these options are material rights at the inception of the agreement. If the Company determines an option is a material right, Recursion will consider the option a separate performance obligation. Historically, the Company has concluded that options granted to license in the future or to provide additional services are not material rights because these items are contingent upon future events that may not occur and are not priced at a significant discount.
Stock-Based Compensation	Stock-Based Compensation The Company issues stock-based awards to employees and non-employees, generally in the form of stock options and restricted stock units (RSUs). Most of the Company’s stock-based awards have been made to employees. Recursion measures compensation expense for equity awards at their grant-date fair value and recognizes compensation expense over the requisite service period, generally on a straight-line basis. For stock-based awards with a performance condition, Recursion recognizes stock-based compensation expense based on the probable outcome of the performance condition. Awards generally vest over four years for employees. Recursion recognizes the impact of forfeitures on stock-based compensation expense as they occur. The grant date fair value of stock options is estimated using the Black-Scholes option pricing model, which requires inputs for the expected term, stock price volatility, dividend yield and the risk-free interest rate of the options. The expected term is based on the simplified method since the Company does not have sufficient historical exercise data to estimate the expected term. The volatility is based on an average peer historical volatility over the expected term of the option. The expected dividend yield is assumed to be zero as Recursion has never paid dividends and does not have current plans to pay dividends. The risk-free interest rate is based on the rates available at the time of the grant for zero-coupon U.S. government issues with a remaining term equal to the option's expected term. The grant date fair value of RSUs is determined using the market price of the Company’s common stock at grant date. For stock-based awards with a market condition, the grant date fair value is determined using a Monte Carlo simulation and stock-based compensation expense is recognized using the accelerated attribution method over the implied service period. When a market condition is satisfied in a period before the end of the implied service period, any remaining unrecognized compensation cost is recognized. Stock-based compensation is recorded in research and development expense and general and administrative expense based on the role of the employee and non-employee.
Income Taxes	Income Taxes Income taxes are accounted for under the asset and liability method. Provisions for federal, state and foreign income taxes are calculated on reported pretax losses based on current tax laws. Deferred taxes are recognized using enacted tax rates on the future tax consequences of temporary differences, which are the differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases and the tax benefits of carryforwards. A valuation allowance is established or maintained when, based on currently available information, it is more likely than not that all or a portion of a deferred tax asset will not be realized. For uncertain tax positions, Recursion determines whether the position is more-likely-than-not to be sustained upon examination based on the technical merits of the position. Any tax position that meets the more-likely-than-not recognition threshold is measured and recognized in the Consolidated Financial Statements at the largest amount that is greater than 50% likely of being realized upon ultimate settlement.
Recent Accounting Pronouncements	Recent Accounting Pronouncements On January 1, 2022, Recursion adopted Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). Under Topic 842, lessees are required to recognize a right-of-use asset and a lease liability on the balance sheet for all leases with terms greater than 12 months. The guidance also expanded the disclosure requirements of lease arrangements. The Company will adopt Topic 842 using the modified retrospective method. Recursion elected the following practical expedients when assessing the transition impact: i) not to reassess whether any expired or existing contracts as of the adoption date are or contain leases; ii) not to reassess the lease classification for any expired or existing leases as of the adoption date; and iii) not to reassess initial direct costs for any existing leases as of the adoption date. Results for reporting periods beginning after December 31, 2021 will be presented in accordance with the standard, while results for prior periods will not be adjusted and will continue to be reported in accordance with Recursion’s historical accounting. The January 1, 2022 adjustment to record lease right-of-use assets and lease liabilities will be $32.9 million and $47.8 million, respectively. The Company does not anticipate any material change to the consolidated statements of income and cash flows.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Schedule of property and equipment

Depreciation is computed using the straight-line method based on the estimated useful lives of the assets. The estimated useful lives by asset classification are generally as follows:


Software/Licenses			3 years
Office Equipment			5 years
Computer Equipment			5 years
Lab Equipment			7 years
Leasehold Improvements			Lesser of 15 years or the remainder of the lease

Property and Equipment


	December 31,
(in thousands)	2021		2020
Lab equipment	$	33,076	$	19,701
Leasehold improvements	13,936		13,792
Office equipment	20,005		1,075
Construction in progress	16,445		1,361
Property and equipment, gross	83,462		35,929
Less: Accumulated depreciation	(18,737)		(9,962)
Property and equipment, net	$	64,725	$	25,967

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2021

Business Combination and Asset Acquisition [Abstract]

Schedule of the Fair Value of Assets Acquired

The following table summarizes fair values of assets acquired as of the July 2020 acquisition date:


(in thousands)
Inventory	$	232
Property and equipment	14
Technology intangible asset	911
Other intangibles assets	642
Total identifiable net assets	1,799
Goodwill	801
Total assets acquired	$	2,600

Supplemental Financial Information (Tables)

12 Months Ended

Dec. 31, 2021

Supplemental Financial Information [Abstract]

Schedule of property and equipment

Depreciation is computed using the straight-line method based on the estimated useful lives of the assets. The estimated useful lives by asset classification are generally as follows:


Software/Licenses			3 years
Office Equipment			5 years
Computer Equipment			5 years
Lab Equipment			7 years
Leasehold Improvements			Lesser of 15 years or the remainder of the lease

Property and Equipment


	December 31,
(in thousands)	2021		2020
Lab equipment	$	33,076	$	19,701
Leasehold improvements	13,936		13,792
Office equipment	20,005		1,075
Construction in progress	16,445		1,361
Property and equipment, gross	83,462		35,929
Less: Accumulated depreciation	(18,737)		(9,962)
Property and equipment, net	$	64,725	$	25,967

Schedule of accrued expenses and other liabilities

Accrued Expenses and Other Liabilities


	December 31,
(in thousands)	2021		2020
Accrued compensation	$	11,738	$	3,085
Accrued development expenses	4,682		2,289
Accrued early discovery expenses	2,114		338
Accrued construction	4,665		—
Accrued professional fees	1,793		734
Accrued other expenses	7,341		4,039
Accrued expense and other liabilities	$	32,333	$	10,485

Interest income and expense disclosure

Interest Expense, net


	Years ended December 31,
(in thousands)	2021		2020		2019
Interest expense	$	2,952	$	1,360	$	635
Interest income	(73)		(336)		(1,741)
Interest expense, net	$	2,879	$	1,024	$	(1,106)

Investments (Tables)

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-Sale Investments by Type of Security

The following table summarizes the Company’s available-for-sale investments by type of security:


	December 31, 2021
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair values
Money market funds	$	155,731	$	—	$	—	$	155,731
U.S. government debt	19,960		—		(33)		19,927
Corporate bonds	61,451		—		(74)		61,377
Certificates of deposit	21,450		—		(10)		21,440
Commercial paper	140,911		3		(12)		140,902
Total	$	399,503	$	3	$	(129)	$	399,377

Schedule of Available -for-Sale Investments by Balance Sheet Classification

The following table summarizes the classification of the Company’s available-for-sale investments on the Consolidated Balance Sheet:


(in thousands)	December 31, 2021
Cash and cash equivalents	$	167,931
Short-term investments	231,446
Total	$	399,377

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of finite-lived intangible assets

The following table summarizes intangible assets:


	December 31, 2021						December 31, 2020
(in thousands)	Gross carrying amount		Accumulated Amortization		Net carrying amount		Gross carrying amount		Accumulated Amortization		Net carrying amount
Definite-lived intangible asset	$	911	$	(430)	$	481	$	911	$	(126)	$	785
Indefinite-lived intangible asset	904		—		904		904		—		904
Intangible assets, net	$	1,815	$	(430)	$	1,385	$	1,815	$	(126)	$	1,689

Schedule of indefinite-lived intangible assets

The following table summarizes intangible assets:


	December 31, 2021						December 31, 2020
(in thousands)	Gross carrying amount		Accumulated Amortization		Net carrying amount		Gross carrying amount		Accumulated Amortization		Net carrying amount
Definite-lived intangible asset	$	911	$	(430)	$	481	$	911	$	(126)	$	785
Indefinite-lived intangible asset	904		—		904		904		—		904
Intangible assets, net	$	1,815	$	(430)	$	1,385	$	1,815	$	(126)	$	1,689

Notes Payable (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Schedule of debt

Notes payable consisted of the following:


	December 31,
(in thousands)	2021		2020
Current portion of notes payable	$	90	$	1,073
Long-term portion of notes payable	633		11,615
Less: unamortized issuance costs	—		(201)
Notes payable, net	$	723	$	12,487

Schedule of maturities of long-term debt

The following table presents information regarding the Company’s debt principal repayment obligations as of December 31, 2021:


(in thousands)	Amount
2022	$	90
2023	97
2024	105
2025	114
2026	124
Thereafter	193
Total debt principal payments	$	723

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Future Minimum Lease Payments

Future minimum commitments as of December 31, 2021 under the Company’s lease agreements are as follows:


(in thousands)	Amount
2022	$	3,977
2023	7,053
2024	7,325
2025	7,513
2026	7,739
Thereafter	26,448
Total minimum payments	$	60,055

Convertible Preferred Stock (Tables)

12 Months Ended

Dec. 31, 2021

Temporary Equity [Abstract]

Schedule of temporary equity

Convertible preferred stock consisted of the following as of December 31, 2020:



(in thousands except share data)	Preferred Shares Authorized	Preferred Shares Issued and Outstanding	Carrying Value		Liquidation Preferences		Shares of Common Stock Issuable Upon Conversion
Series A	30,078,402	29,965,754	$	21,281	$	21,281	29,965,754
Series A-1	4,975,521	4,975,520	—		—		4,975,520
Series B	21,497,667	21,471,898	59,913		60,000		21,471,898
Series C	18,956,354	18,776,345	119,915		122,058		22,286,298
Series D	45,926,769	36,898,548	247,203		247,511		36,898,548
Total convertible preferred stock	121,434,713	112,088,065	$	448,312	$	450,850	115,598,018

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Summary of Stock-based Compensation Expenses

The following table presents the classification of stock-based compensation expense for stock options and RSUs for employees and non-employees within the Consolidated Statements of Operations:


	Years ended December 31,
(in thousands)	2021		2020		2019
Research and development	$	4,841	$	1,777	$	915
General and administrative	8,989		2,059		470
Total	$	13,830	$	3,836	$	1,385

Schedule of Share-based Payment Arrangement, Option, Activity

Stock option activity during the year ended December 31, 2021 was as follows:


(in thousands except share data)	Shares	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (In Years)	Aggregate Intrinsic Value
Outstanding as of December 31, 2020	20,937,443	$	1.85	8.5	$	12,956
Granted	3,538,555	12.79
Cancelled	(1,266,968)	2.59
Exercised	(4,017,316)	1.30			36,773
Outstanding as of December 31, 2021	19,191,714	$	3.78	8.2	$	260,762
Exercisable as of December 31, 2021	7,921,361	$	1.89	7.2	$	121,201

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The following weighted-average assumptions were used to calculate the grant-date fair value of stock options:


	Years ended December 31,
	2021		2020		2019
Expected term (in years)	6.3		6.2		6.2
Expected volatility	65	%	67	%	64	%
Expected dividend yield	—		—		—
Risk-free interest rate	1.1	%	1.0	%	2.3	%

Schedule of Nonvested RSU Activity

The following table summarizes Recursion’s RSU activity during the year ended December 31, 2021:


	Stock units	Weighted-average grant date fair value
Outstanding as of December 31, 2020	—	$	—
Granted	496,312	23.44
Vested	(13,725)	25.47
Forfeited	(4,451)	22.21
Outstanding as of December 31, 2021	478,136	$	23.40

Schedule of Share-based Payment, Award, ESPP, Valuation Assumptions

The weighted-average assumptions used in the Black-Scholes models were as follows:


	Year ended December 31, 2021
Expected term (in years)	0.5
Expected volatility	61	%
Expected dividend yield	—
Risk-free interest rate	0.06	%

Summary Of Changes In Company's Warrant Liability

The following is a summary of the changes in the Company’s Series A and B warrant liability balance during the years ended December 31, 2021 and 2020:


(in thousands)
Balance as of December 31, 2018	$	139
Decrease in fair value of warrants	(11)
Balance as of December 31, 2019	$	128
Decrease in fair value of warrants	(3)
Balance as of December 31, 2020	$	125
Increase in fair value of warrants	2,215
Recorded in equity upon exercise	(2,340)
Balance as of December 31, 2021	$	—

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Income Tax Provision Components

The provision for income taxes consisted of the following components (all deferred):


	Years ended December 31,
(in thousands)	2021		2020		2019
Federal	$	47,138	$	20,707	$	15,555
State	(684)		947		1,517
Other	149		—		—
Change in valuation allowance	(46,603)		(21,654)		(17,072)
Total	$	—	$	—	$	—

Schedule of Effective Income Tax Rate Reconciliation

The Company’s effective tax rate of 0% for the years ended December 31, 2021, 2020 and 2019 differs from the statutory U.S. federal rate as follows:


	Years ended December 31,
	2021		2020		2019
Statutory tax rate	21.0	%	21.0	%	21.0	%
R&D credit generation	3.2	%	3.3	%	3.6	%
Orphan drug credit generation	1.1	%	1.0	%	1.5	%
Uncertain tax positions	(0.4)	%	(0.4)	%	(0.5)	%
Other non-deductible expenses	0.4	%	(1.1)	%	(0.4)	%
Change in valuation allowance	(25.3)	%	(23.8)	%	(25.2)	%
Effective tax rate	—	%	—	%	—	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant components of the deferred tax assets are as follows:


	December 31,
(in thousands)	2021		2020
Deferred tax assets
Reserves and accruals	$	5,922	$	1,906
Net operating loss carryforwards	76,954		43,954
Stock-based compensation	1,732		356
Research and development credit carryforwards	16,742		9,529
Deferred rent	3,132		—
Definite lived intangibles	1,005		1,114
Other	426		217
Gross deferred tax assets	105,913		57,076
Valuation allowance	(102,041)		(55,439)
Net deferred tax asset	3,872		1,637
Deferred tax liabilities
Depreciable assets	(2,089)		(1,637)
Tenant allowance receivable	(1,783)		—
Deferred tax liabilities	(3,872)		(1,637)
Net deferred tax asset	$	—	$	—

Net Loss Per Share (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Net Loss per Share

The following tables set forth the computation of basic and diluted net loss per share of Class A and Class B common stock during 2021:


	Year ended
	December 31, 2021
(in thousands, except share amount)	Class A		Class B
Numerator:
Allocation of undistributed earnings	$	(172,399)	$	(14,080)
Denominator:
Weighted average common shares outstanding	115,883,920		9,464,190
Net loss per share, basic and diluted	$	(1.49)	$	(1.49)

The following table sets forth the computation of basic and diluted net loss per share during 2020 and 2019:


	Years ended December 31,
(in thousands, except share amounts)	2020		2019
Numerator:
Net loss	$	(87,006)	$	(61,879)
Denominator:
Weighted average common shares outstanding	21,781,386		21,570,265
Net loss per share, basic and diluted	$	(3.99)	$	(2.87)

Schedule of Antidilutive Securities Excluded from Computation of Net Loss Per Share

The Company excluded the following potential common shares from the computation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect:


	Years ended December 31,
	2021	2020	2019
Convertible preferred stock	34,615,890	90,684,675	78,699,495
Stock options	15,381,210	3,636,400	8,677,652
Warrants	151,745	117,342	138,409
Total	50,148,845	94,438,417	87,515,556

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables summarize the Company’s assets and liabilities that are measured at fair value on a recurring basis:


			Basis of fair value measurement
(in thousands)	December 31, 2021		Level 1		Level 2		Level 3
Assets
Cash equivalents:
Money market funds	$	155,731	$	—	$	155,731	$	—
Commercial paper	12,000		—		12,000		—
Corporate bonds	200		—		200		—
Restricted cash	10,233		10,233		—		—
Investments:
U.S. government debt	19,927		—		19,927		—
Corporate bonds	61,177		—		61,177		—
Certificates of deposit	21,440		—		21,440		—
Commercial paper	128,902		—		128,902		—
Total assets	$	409,610	$	10,233	$	399,377	$	—


			Basis of fair value measurement
(in thousands)	December 31, 2020		Level 1		Level 2		Level 3
Assets
Restricted cash	$	5,041	$	5,041	$	—	$	—
Total assets	$	5,041	$	5,041	$	—	$	—
Liabilities
Warrant liability	$	125	$	—	$	—	$	125
Total liabilities	$	125	$	—	$	—	$	125

Fair Value Disclosure of Asset and Liability Not Measured at Fair Value

The following tables summarize the Company’s financial instruments that are not measured at fair value:


	Book values				Fair values
(in thousands)	December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020
Liabilities
Current portion of notes payable	$	90	$	1,073	$	90	$	1,073
Notes payable, net of current portion	633		11,414		633		11,414
Total liabilities	$	723	$	12,487	$	723	$	12,487

Description of the Business (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ (400,080)	$ (213,601)

- Definition

The cumulative amount of the reporting entity's undistributed earnings or deficit.

+ References + Details

Summary of Significant Accounting Policies - Narrative (Details)		1 Months Ended	12 Months Ended
	Apr. 09, 2021	Apr. 30, 2021	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Jan. 01, 2022 USD ($)
Class of Stock [Line Items]
Stock split, conversion ratio	1.5	1.5
Revenue			$ 10,178,000	$ 3,962,000	$ 2,319,000
Accounts receivable			$ 34,000	156,000
Vesting period			4 years
Common Stock (Class A and B)
Class of Stock [Line Items]
Stock split, conversion ratio		1
Subsequent event
Class of Stock [Line Items]
Operating Lease, Right-of-Use Asset								$ 32,900,000
Operating lease liability								$ 47,800,000
Grant revenue
Class of Stock [Line Items]
Remaining unearned revenue			$ 279,000
Revenue			178,000	549,000	608,000
U.S. National Institute of Health \| Grant revenue
Class of Stock [Line Items]
Proceeds from grants awarded						$ 1,400,000
Revenue			$ 178,000	$ 549,000	385,000
Bill and Melinda Gates Foundation \| Grant revenue
Class of Stock [Line Items]
Proceeds from grants awarded							$ 546,000
Remaining unearned revenue					0
Revenue recognized					223,000
Grants receivable					$ 0

Summary of Significant Accounting Policies - Estimated Useful Lives (Details)	12 Months Ended
	Dec. 31, 2021
Software/Licenses
Property, Plant and Equipment [Line Items]
Useful life	3 years
Office equipment
Property, Plant and Equipment [Line Items]
Useful life	5 years
Computer Equipment
Property, Plant and Equipment [Line Items]
Useful life	5 years
Lab equipment
Property, Plant and Equipment [Line Items]
Useful life	7 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Useful life	15 years

Acquisitions (Details) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
Acquisitions (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Jul. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Net assets acquired based on fair values:
Goodwill	$ 801		$ 801	$ 801
Purchase of an intangible asset			$ 0	$ 904	$ 0
Domain name
Net assets acquired based on fair values:
Purchase of an intangible asset	$ 904
Vium
Business Acquisition [Line Items]
Percentage of business acquired		100.00%
Total consideration transferred		$ 2,600
Net assets acquired based on fair values:
Inventory		232
Property and equipment		14
Other intangibles assets		642
Total identifiable net assets		1,799
Goodwill		801
Total assets acquired		2,600
Vium \| Technology-Based Intangible Assets
Net assets acquired based on fair values:
Technology intangible asset		$ 911
Useful life		3 years

Supplemental Financial Information - PPE (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 83,462	$ 35,929
Less: Accumulated depreciation	(18,737)	(9,962)
Property and equipment, net	64,725	25,967
Depreciation	8,800	4,200	$ 3,500
Lab equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	33,076	19,701
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	13,936	13,792
Office equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	20,005	1,075
Property and equipment additions	17,900
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 16,445	$ 1,361

Supplemental Financial Information - Accruals (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Supplemental Financial Information [Abstract]
Accrued compensation	$ 11,738	$ 3,085
Accrued development expenses	4,682	2,289
Accrued early discovery expenses	2,114	338
Accrued construction	4,665	0
Accrued professional fees	1,793	734
Accrued other expenses	7,341	4,039
Accrued expenses and other liabilities	$ 32,333	$ 10,485

Supplemental Financial Information - Interest (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Supplemental Financial Information [Abstract]
Interest expense	$ 2,952	$ 1,360	$ 635
Interest income	(73)	(336)	(1,741)
Interest expense, net	$ 2,879	$ 1,024	$ (1,106)

Investments - Type of Security (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Debt Securities, Available-for-sale [Line Items]
Amortized cost	$ 399,503
Gross unrealized gains	3
Gross unrealized losses	(129)
Fair values	399,377
Money market funds
Debt Securities, Available-for-sale [Line Items]
Amortized cost	155,731
Gross unrealized gains	0
Gross unrealized losses	0
Fair values	155,731
U.S. government debt
Debt Securities, Available-for-sale [Line Items]
Amortized cost	19,960
Gross unrealized gains	0
Gross unrealized losses	(33)
Fair values	19,927
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Amortized cost	61,451
Gross unrealized gains	0
Gross unrealized losses	(74)
Fair values	61,377
Certificates of deposit
Debt Securities, Available-for-sale [Line Items]
Amortized cost	21,450
Gross unrealized gains	0
Gross unrealized losses	(10)
Fair values	21,440
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Amortized cost	140,911
Gross unrealized gains	3
Gross unrealized losses	(12)
Fair values	$ 140,902

Investments - Balance Sheet Classification (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Debt Securities, Available-for-sale [Line Items]
Available for sale investments	$ 399,377
Cash and cash equivalents
Debt Securities, Available-for-sale [Line Items]
Available for sale investments	167,931
Short-term investments
Debt Securities, Available-for-sale [Line Items]
Available for sale investments	$ 231,446

Investments - Narrative (Details)	12 Months Ended
Investments - Narrative (Details)	Dec. 31, 2021 USD ($) position
Investments, Debt and Equity Securities [Abstract]
Number of unrealized loss positions (in positions) \| position	34
Impairment of available for sale securities \| $	$ 0

Goodwill and Intangible Assets (Details) - USD ($)	12 Months Ended
Goodwill and Intangible Assets (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 801,000	$ 801,000
Change in carrying amount of goodwill	0
Goodwill impairment	0	0
Intangible Assets, Net
Gross carrying amount	911,000	911,000
Accumulated Amortization	(430,000)	(126,000)
Net carrying amount	481,000	785,000
Indefinite-lived intangible asset	904,000	904,000	$ 0
Intangible assets, gross	1,815,000	1,815,000
Intangible assets, net	1,385,000	1,689,000
Amortization expense	$ 304,000	126,000	$ 0
Amortization period of definite-lived intangible assets	2 years
Impairment of indefinite-lived intangible assets	$ 0	$ 0

Notes Payable - Midcap Financial (Details) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
	Jul. 31, 2021	Sep. 30, 2019	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Loss on debt extinguishment			$ (827)	$ (883)	$ (555)
Payments of fees in connection with the midcap loan agreement			$ 0	0	275
Midcap loan agreement, tranche 1 \| Line of credit
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 11,900
Repayments of debt	$ 12,700
Pacific Western Bank loan
Debt Instrument [Line Items]
Loss on debt extinguishment					(555)
Pacific Western Bank loan \| Loans payable
Debt Instrument [Line Items]
Repayments of debt		$ 11,200
Midcap loan agreement \| Line of credit
Debt Instrument [Line Items]
Loss on debt extinguishment	$ (996)
Line of credit outstanding				$ 11,900
Payments of fees in connection with the midcap loan agreement					$ 298

Notes Payable - Pacific Western (Details) - Letter of credit - Pacific Western letter of credit - USD ($) $ in Millions	Dec. 31, 2020	May 31, 2018
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 3.8
Line of credit outstanding	$ 3.8
Restricted cash	$ 4.0

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Notes Payable - Convertible Notes (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2020	Apr. 30, 2020	Mar. 31, 2020
Debt Instrument [Line Items]
Stock issued during the period, value of conversion of convertible securities	$ 1,600
Convertible notes payable
Debt Instrument [Line Items]
Debt instrument, face amount			$ 6,400	$ 6,400
Shares issued in the period, upon conversion (in shares)	1,203,231
Change in fair value of derivate		$ (484)

Notes Payable - Notes Payable for Tenant Improvement Allowance (Details) - Notes payable - Station 41 lease $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)
Debt Instrument [Line Items]
Proceeds from long-term debt	$ 992
Debt instrument, term	10 years
Debt Instrument, interest rate	8.00%

Notes Payable - Current/Noncurrent (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Total liabilities	$ 723
Notes payable
Debt Instrument [Line Items]
Current portion of notes payable	90	$ 1,073
Notes payable, net of current portion	633	11,615
Less: unamortized issuance costs	0	(201)
Total liabilities	$ 723	$ 12,487

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

Notes Payable - Principal Repayments (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Debt Disclosure [Abstract]
2022	$ 90
2023	97
2024	105
2025	114
2026	124
Thereafter	193
Total liabilities	$ 723

- Definition

+ References + Details

Commitments and Contingencies - Narrative (Details) $ in Thousands	1 Months Ended		12 Months Ended
	Jan. 31, 2021 USD ($) ft²	Aug. 31, 2017 extensionPeriod	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Aug. 31, 2019	Dec. 31, 2017 USD ($)	Aug. 31, 2016 USD ($)
Lessee, Lease, Description [Line Items]
Rent expense			$ 6,400	$ 3,700	$ 3,700
Purchase obligation			61,200
Purchase obligation, due within next year			36,700
Station 41
Lessee, Lease, Description [Line Items]
Lease term					7 years
Milpitas
Lessee, Lease, Description [Line Items]
Lease term							9 years
Station 56
Lessee, Lease, Description [Line Items]
Lease term	11 years
Incentive from lessor			8,500
Lease incentive, payable			8,100
Size of leased asset (in square feet) \| ft²	91,478
Tenant improvement allowance	$ 10,100
Station 41 lease \| Notes payable
Lessee, Lease, Description [Line Items]
Proceeds from long-term debt						$ 992
Debt Instrument, interest rate						8.00%
Komas
Lessee, Lease, Description [Line Items]
Lease term									7 years
Incentive from lessor									$ 847
Lease incentive, payable			252
Station 41
Lessee, Lease, Description [Line Items]
Lease term		10 years
Incentive from lessor								$ 4,000
Lease incentive, payable			$ 2,400
Number of renewal options (in extension periods) \| extensionPeriod		1
Operating lease, renewal term		5 years
Station 56
Lessee, Lease, Description [Line Items]
Operating lease, renewal term	5 years

Commitments and Contingencies - Minimum payments (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2022	$ 3,977
2023	7,053
2024	7,325
2025	7,513
2026	7,739
Thereafter	26,448
Total minimum payments	$ 60,055

Convertible Preferred Stock - Narrative (Details) - USD ($)		1 Months Ended	12 Months Ended
	Apr. 20, 2021	Apr. 30, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Preferred Units [Line Items]
Convertible preferred stock, shares outstanding (in shares)			0	112,088,065	75,189,517	56,413,172
Convertible preferred stock, shares issued (in shares)			$ 0
Series D
Preferred Units [Line Items]
Convertible preferred stock, shares outstanding (in shares)				36,898,548
Number of shares issued in transaction (in shares)				36,898,548
Consideration received from transaction				$ 245,900,000
Price per share (in dollars per share)				$ 6.71
Price per converted share (in dollars per share)				$ 5.37
IPO
Preferred Units [Line Items]
Shares issued in the period, upon conversion (in shares)		115,598,018
Number of shares issued in transaction (in shares)	27,878,787
Consideration received from transaction	$ 462,400,000
Price per share (in dollars per share)	$ 18.00

Convertible Preferred Stock - Summary (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Preferred Units [Line Items]
Preferred shares authorized (in shares)	200,000,000	121,434,713
Preferred shares issued (in shares)	0	112,088,065
Preferred shares outstanding (in shares)	0	112,088,065	75,189,517	56,413,172
Carrying Value	$ 0	$ 448,312	$ 201,109	$ 81,194
Liquidation Preferences	$ 0	$ 450,850
Shares of common stock issuable upon conversion (in shares)		115,598,018
Series A
Preferred Units [Line Items]
Preferred shares authorized (in shares)		30,078,402
Preferred shares issued (in shares)		29,965,754
Preferred shares outstanding (in shares)		29,965,754
Carrying Value		$ 21,281
Liquidation Preferences		$ 21,281
Shares of common stock issuable upon conversion (in shares)		29,965,754
Series A-1
Preferred Units [Line Items]
Preferred shares authorized (in shares)		4,975,521
Preferred shares issued (in shares)		4,975,520
Preferred shares outstanding (in shares)		4,975,520
Carrying Value		$ 0
Liquidation Preferences		$ 0
Shares of common stock issuable upon conversion (in shares)		4,975,520
Series B
Preferred Units [Line Items]
Preferred shares authorized (in shares)		21,497,667
Preferred shares issued (in shares)		21,471,898
Preferred shares outstanding (in shares)		21,471,898
Carrying Value		$ 59,913
Liquidation Preferences		$ 60,000
Shares of common stock issuable upon conversion (in shares)		21,471,898
Series C
Preferred Units [Line Items]
Preferred shares authorized (in shares)		18,956,354
Preferred shares issued (in shares)		18,776,345
Preferred shares outstanding (in shares)		18,776,345
Carrying Value		$ 119,915
Liquidation Preferences		$ 122,058
Shares of common stock issuable upon conversion (in shares)		22,286,298
Series D
Preferred Units [Line Items]
Preferred shares authorized (in shares)		45,926,769
Preferred shares issued (in shares)		36,898,548
Preferred shares outstanding (in shares)		36,898,548
Carrying Value		$ 247,203
Liquidation Preferences		$ 247,511
Shares of common stock issuable upon conversion (in shares)		36,898,548

Common Stock - Narrative (Details) $ / shares in Units, $ in Millions			1 Months Ended
	Apr. 20, 2021 USD ($) $ / shares shares	Apr. 09, 2021	Apr. 30, 2021 vote shares	Dec. 31, 2021 vote
Class of Stock [Line Items]
Stock split, conversion ratio		1.5	1.5
Class A
Class of Stock [Line Items]
Vote per share of common stock (in votes) \| vote			1	1
Class B
Class of Stock [Line Items]
Vote per share of common stock (in votes) \| vote				10
Christopher Gibson and his affiliates
Class of Stock [Line Items]
Affiliated holders, ownership percentage				0.37
Affiliated holders, potential ownership percentage when outstanding equity awards vest				0.40
IPO
Class of Stock [Line Items]
IPO, number of shares issued (in shares) \| shares	27,878,787
Price per share (in dollars per share) \| $ / shares	$ 18.00
IPO, net proceeds received	$ 462.4
IPO, underwriting discounts and commissions	35.1
IPO, expenses costs	$ 4.3
Shares issued in the period, upon conversion (in shares) \| shares			115,598,018

Collaborative Development Contracts - Bayer AG (Details) $ in Thousands	1 Months Ended	12 Months Ended
	Aug. 31, 2020 USD ($) project	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Current portion of unearned revenue		$ 10,000	$ 10,000
Unearned revenue, net of current portion		6,667	16,667
Bayer AG \| Collaborative arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaborative agreement, term	5 years
Number of projects that may be initiated (in projects) \| project	10
Research project, fees and milestones payments receivable for an option on a lead series	$ 100,000
Research project, fees and milestones payments receivable for an option on a development candidate	120,000
Non-refundable upfront payment received	$ 30,000
Revenue from contract with customer		10,000	$ 3,300
Current portion of unearned revenue		10,000
Unearned revenue, net of current portion		$ 6,700
Takeda Pharmaceuticals \| Collaborative arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenue from contract with customer				$ 1,300

Stock-Based Compensation - Narrative (Details) - USD ($)	1 Months Ended			12 Months Ended
	Apr. 30, 2021	Feb. 28, 2021	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, vesting period				4 years
Options granted in period, weighted average grant date fair value (in dollars per share)				$ 7.66	$ 1.50	$ 1.34
Options, granted in period (in shares)				3,538,555
Share-based payment arrangement, expense				$ 13,830,000	$ 3,836,000	$ 1,385,000
Unvested stock options, unamortized stock-based compensation cost				$ 31,700,000
Unvested stock options, unamortized stock-based compensation cost, weighted average period recognition				3 years
Performance shares \| Share-based Payment Arrangement, Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, granted in period (in shares)		150,000	1,500,000
Options, granted in period, fair value		$ 358,000	$ 2,000,000
Share-based payment arrangement, expense				$ 1,700,000	$ 0
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair market value of vested shares				$ 312,000
Unvested stock options, unamortized stock-based compensation cost, weighted average period recognition				3 years
Unrecognized compensation cost				$ 9,900,000
Granted (in shares)				496,312
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, vesting period	4 years
Employee stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, vesting period				4 years
Stock options, expiration period				10 years
Share-based payment arrangement, expense				$ 731,000
Unvested stock options, unamortized stock-based compensation cost, weighted average period recognition				5 months
Unrecognized compensation cost				$ 522,000
Granted (in shares)				106,365
2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, capital shares reserved for future issuance (in shares)	16,186,000
Number of shares available for grant (in shares)				14,677,116
2021 Employee Stock Purchase Plan \| Employee stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, capital shares reserved for future issuance (in shares)	3,238,000
Purchase period	6 months
Purchase price of common stock (as a percent)	85.00%

Stock-Based Compensation - Summary of Stock-based Compensation Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based payment arrangement, expense	$ 13,830	$ 3,836	$ 1,385
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based payment arrangement, expense	4,841	1,777	915
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based payment arrangement, expense	$ 8,989	$ 2,059	$ 470

Stock-Based Compensation - Schedule of Share-based Payment Arrangement, Option, Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options, outstanding, number at beginning of period (in shares)	20,937,443
Options, granted in period (in shares)	3,538,555
Options, cancelled in period (in shares)	(1,266,968)
Options, exercised in period (in shares)	(4,017,316)
Options, outstanding, number at end of period (in shares)	19,191,714	20,937,443
Options, exercisable, number (in shares)	7,921,361
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Options, outstanding, weighted average exercise price at beginning of period (in dollars per share)	$ 1.85
Options, grants in period, weighted average exercise price (in dollars per share)	12.79
Options, cancelled in period, weighted average exercise price (in dollars per share)	2.59
Options, exercised in period, weighted average exercise price (in dollars per share)	1.30
Options, outstanding, weighted average exercise price at end of period (in dollars per share)	3.78	$ 1.85
Options, exercisable, weighted average exercise price (in dollars per share)	$ 1.89
Options, outstanding, weighted average remaining contractual life	8 years 2 months 12 days	8 years 6 months
Options, exercisable, weighted average remaining contractual life	7 years 2 months 12 days
Options, outstanding, intrinsic value	$ 260,762	$ 12,956
Options, exercised in period, intrinsic value	36,773
Options, exercisable, intrinsic value	$ 121,201

Stock-Based Compensation - Schedule of Share-based Payment Award, Stock Options, Valuation Assumption (Details) - Stock options	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 years 3 months 18 days	6 years 2 months 12 days	6 years 2 months 12 days
Expected volatility	65.00%	67.00%	64.00%
Expected dividend yield	0.00%	0.00%	0.00%
Risk-free interest rate	1.10%	1.00%	2.30%

Stock-Based Compensation - Schedule of RSU Activity (Details) - Restricted stock	12 Months Ended
	Dec. 31, 2021 $ / shares shares
Stock units
Beginning balance, outstanding (in shares) \| shares	0
Granted (in shares) \| shares	496,312
Vested (in shares) \| shares	(13,725)
Forfeited (in shares) \| shares	(4,451)
Ending balance, outstanding (in shares) \| shares	478,136
Weighted-average grant date fair value
Beginning balance, outstanding Weighted average grant date fair value (in dollars per share) \| $ / shares	$ 0
Granted (in dollars per share) \| $ / shares	23.44
Vested (in dollars per share) \| $ / shares	25.47
Forfeited (in shares) \| $ / shares	22.21
Ending balance, outstanding Weighted average grant date fair value (in dollars per share) \| $ / shares	$ 23.40

Stock-Based Compensation - Schedule of Share-based Payment, Award, ESPP, Valuation Assumptions (Details) - Employee stock	12 Months Ended
	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 months
Expected volatility	61.00%
Expected dividend yield	0.00%
Risk-free interest rate	0.06%

Stock-Based Compensation - Warrants (Details) - $ / shares	1 Months Ended
	Jan. 31, 2020	Dec. 31, 2021	Jul. 31, 2018	May 31, 2017
2016 Warrants
Warrants Arrangements [Line Items]
Warrants outstanding (in shares)		84,486
Warrants, exercise price (in dollars per share)		$ 0.71
2017 Warrants
Warrants Arrangements [Line Items]
Warrants outstanding (in shares)				28,161
Warrants, exercise price (in dollars per share)				$ 0.71
2018 Warrants
Warrants Arrangements [Line Items]
Warrants outstanding (in shares)			25,762
Warrants, exercise price (in dollars per share)			$ 2.79
Warrants Issued In January 2020 \| Series C
Warrants Arrangements [Line Items]
Warrants, exercise price (in dollars per share)	$ 5.49
Warrants issued (in shares)	213,646
Warrants, grand date fair value (in dollars per share)		$ 4.10

Stock-Based Compensation - Summary Of Changes In Company's Warrant Liability (Details) - Warrants - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of warrants at beginning of period	$ 125	$ 128	$ 139
Decrease in fair value of warrants	2,215	(3)	(11)
Recorded in equity upon exercise	(2,340)
Fair value of warrants at end of period	$ 0	$ 125	$ 128

Employee benefit plans (Details) - USD ($) $ in Thousands	12 Months Ended
Employee benefit plans (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Employee benefit plan, percentage of maximum annual contributions per employee	4.00%
Employee benefit plan, percentage of matching contribution	100.00%
Employee benefit plan, employer matching contribution, percentage of employees' gross pay	4.00%
Employee benefit plan, employer expenses	$ 2,100	$ 1,100	$ 931

Income Taxes - Income Tax Provision Components (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Federal	$ 47,138,000	$ 20,707,000	$ 15,555,000
State	(684,000)	947,000	1,517,000
Other	149,000	0	0
Change in valuation allowance	(46,603,000)	(21,654,000)	(17,072,000)
Total	$ 0	$ 0	$ 0

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Effective Income Tax Rate Reconciliation (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Effective tax rate	0.00%	0.00%	0.00%
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Statutory tax rate	21.00%	21.00%	21.00%
R&D credit generation	3.20%	3.30%	3.60%
Orphan drug credit generation	1.10%	1.00%	1.50%
Uncertain tax positions	(0.40%)	(0.40%)	(0.50%)
Other non-deductible expenses	0.40%	(1.10%)	(0.40%)
Change in valuation allowance	(25.30%)	(23.80%)	(25.20%)
Effective tax rate	0.00%	0.00%	0.00%

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets
Reserves and accruals	$ 5,922	$ 1,906
Net operating loss carryforwards	76,954	43,954
Stock-based compensation	1,732	356
Research and development credit carryforwards	16,742	9,529
Deferred rent	3,132	0
Definite lived intangibles	1,005	1,114
Other	426	217
Gross deferred tax assets	105,913	57,076
Valuation allowance	(102,041)	(55,439)
Net deferred tax asset	3,872	1,637
Deferred tax liabilities
Depreciable assets	(2,089)	(1,637)
Tenant allowance receivable	(1,783)	0
Deferred tax liabilities	(3,872)	(1,637)
Net deferred tax asset	$ 0	$ 0

Income Taxes - Narrative (Details) - USD ($)	12 Months Ended
Income Taxes - Narrative (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Contingency [Line Items]
Income tax expense (benefit)	$ 0	$ 0	$ 0
Valuation allowance	102,041,000	55,439,000
Change in valuation allowance	46,600,000	21,700,000
Federal NOL carryforward	353,100,000	193,800,000
State and local NOL carryforward	63,000,000	77,400,000
Reserve for tax credit carryforwards	1,900,000	1,100,000
Orphan Drug credit carryforward
Income Tax Contingency [Line Items]
Tax credit carryforwards	3,800,000	1,800,000
Federal
Income Tax Contingency [Line Items]
Operating loss carryforwards subject to expiration	18,600,000
Operating loss carryforwards not subject to expiration	334,400,000
Federal \| Research tax credit carryforward
Income Tax Contingency [Line Items]
Tax credit carryforwards	16,500,000	6,700,000
State and local
Income Tax Contingency [Line Items]
Operating loss carryforwards subject to expiration	5,300,000
Operating loss carryforwards not subject to expiration	57,700,000
State and local \| Research tax credit carryforward
Income Tax Contingency [Line Items]
Tax credit carryforwards	$ 2,200,000	$ 2,200,000

Net Loss Per Share - Schedule of Basic and Diluted Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Numerator:
Undistributed earnings, diluted	$ (172,399)
Net loss	$ (186,479)	$ (87,006)	$ (61,879)
Denominator:
Weighted average common shares outstanding, basic (in shares)	125,348,110	21,781,386	21,570,265
Weighted average common shares outstanding, diluted (in shares)	125,348,110	21,781,386	21,570,265
Net loss per share, basic (in dollars per shares)	$ (1.49)	$ (3.99)	$ (2.87)
Net loss per share, diluted (in dollars per shares)	$ (1.49)	$ (3.99)	$ (2.87)
Class A
Numerator:
Undistributed earnings, basic	$ (172,399)
Denominator:
Weighted average common shares outstanding, basic (in shares)	115,883,920
Weighted average common shares outstanding, diluted (in shares)	115,883,920
Net loss per share, basic (in dollars per shares)	$ (1.49)
Net loss per share, diluted (in dollars per shares)	$ (1.49)
Class B
Numerator:
Undistributed earnings, basic	$ (14,080)
Undistributed earnings, diluted	$ (14,080)
Denominator:
Weighted average common shares outstanding, basic (in shares)	9,464,190
Weighted average common shares outstanding, diluted (in shares)	9,464,190
Net loss per share, basic (in dollars per shares)	$ (1.49)
Net loss per share, diluted (in dollars per shares)	$ (1.49)

Net Loss Per Share - Schedule of Antidilutive Securities Excluded from Computation of Net Loss Per Share (Details) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share, amount (in shares)	50,148,845	94,438,417	87,515,556
Convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share, amount (in shares)	34,615,890	90,684,675	78,699,495
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share, amount (in shares)	15,381,210	3,636,400	8,677,652
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share, amount (in shares)	151,745	117,342	138,409

Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Restricted cash	$ 10,233
Total assets	409,610	$ 5,041
Warrant liability		125
Total liabilities		125
U.S. government debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments	19,927
Corporate bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments	61,177
Certificates of deposit
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments	21,440
Commercial paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments	128,902
Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	155,731
Commercial paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	12,000
Corporate bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	200
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Restricted cash	10,233
Total assets	10,233	5,041
Warrant liability		0
Total liabilities		0
Level 1 \| U.S. government debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments	0
Level 1 \| Corporate bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments	0
Level 1 \| Certificates of deposit
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments	0
Level 1 \| Commercial paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments	0
Level 1 \| Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0
Level 1 \| Commercial paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0
Level 1 \| Corporate bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Restricted cash	0	0
Total assets	399,377	0
Warrant liability		0
Total liabilities		0
Level 2 \| U.S. government debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments	19,927
Level 2 \| Corporate bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments	61,177
Level 2 \| Certificates of deposit
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments	21,440
Level 2 \| Commercial paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments	128,902
Level 2 \| Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	155,731
Level 2 \| Commercial paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	12,000
Level 2 \| Corporate bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	200
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Restricted cash	0	0
Total assets	0	0
Warrant liability		125
Total liabilities		$ 125
Level 3 \| U.S. government debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments	0
Level 3 \| Corporate bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments	0
Level 3 \| Certificates of deposit
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments	0
Level 3 \| Commercial paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments	0
Level 3 \| Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0
Level 3 \| Commercial paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0
Level 3 \| Corporate bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	$ 0

Fair Value Measurements - Asset and Liability Not Measured at Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Notes payable
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Current portion of notes payable	$ 90	$ 1,073
Notes payable, net of current portion	633	11,615
Book values
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total liabilities	723	12,487
Book values \| Notes payable
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Current portion of notes payable	90	1,073
Notes payable, net of current portion	633	11,414
Fair values
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total liabilities	723	12,487
Fair values \| Notes payable
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Current portion of notes payable	90	1,073
Notes payable, net of current portion	$ 633	$ 11,414

Related Party Transactions (Details) - Chief Executive Officer - USD ($)	1 Months Ended
	Dec. 31, 2017	Dec. 31, 2021	Dec. 31, 2020
Related Party Transaction [Line Items]
Loan to related party	$ 595,000	$ 0	$ 0
Debt instrument, term	7 years

Subsequent Events (Details) - Subsequent event - Roche and Genentech $ in Millions	1 Months Ended
	Jan. 31, 2022 USD ($) program
Subsequent Event [Line Items]
Remaining unearned revenue	$ 150.0
Number of projects that may be initiated (in projects) \| program	40
Research project, fees and milestones payments receivable for an option on a lead series	$ 300.0