0001601830-23-000023 | 10-Q | XBRL Viewer | Recursion Pharmaceuticals INC

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Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2023	Apr. 30, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-40323
Entity Registrant Name	RECURSION PHARMACEUTICALS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	46-4099738
Entity Address, Address Line One	41 S Rio Grande Street
Entity Address, City or Town	Salt Lake City,
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84101
City Area Code	385
Local Phone Number	269 - 0203
Title of 12(b) Security	Class A Common Stock, par value $0.00001
Trading Symbol	RXRX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001601830
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		184,643,171
Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		7,716,209

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 473,145	$ 549,912
Restricted cash	1,311	1,280
Other receivables	2,057	2,753
Other current assets	15,612	15,869
Total current assets	492,125	569,814
Restricted cash, non-current	7,920	7,920
Property and equipment, net	90,004	88,192
Operating lease right-of-use assets	35,116	33,255
Intangible assets, net	1,318	1,306
Goodwill	801	801
Other assets, non-current	82	0
Total assets	627,366	701,288
Current liabilities
Accounts payable	4,247	4,586
Accrued expenses and other liabilities	25,041	32,904
Unearned revenue	57,761	56,726
Notes payable	661	97
Operating lease liabilities	4,440	5,952
Total current liabilities	92,150	100,265
Unearned revenue, non-current	57,091	70,261
Notes payable, non-current	1,179	536
Operating lease liabilities, non-current	46,771	44,420
Total liabilities	197,191	215,482
Commitments and contingencies (Note 6)
Stockholders’ equity
Common stock, $0.00001 par value; 2,000,000,000 shares (Class A 1,989,032,117 and Class B 10,967,883) authorized as of March 31, 2023 and December 31, 2022; 192,230,854 shares (Class A 184,514,645 and Class B 7,716,209) and 191,022,864 shares (Class A 183,209,655 and Class B 7,813,209) issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	2	2
Additional paid-in capital	1,135,056	1,125,360
Accumulated deficit	(704,883)	(639,556)
Total stockholders’ equity	430,175	485,806
Total liabilities and stockholders’ equity	$ 627,366	$ 701,288

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized (in shares)	2,000,000,000	2,000,000,000
Common stock, shares issued (in shares)	192,230,854	191,022,864
Common sock, shares outstanding (in shares)	192,230,854	191,022,864
Class A
Common stock, shares authorized (in shares)	1,989,032,117	1,989,032,117
Common stock, shares issued (in shares)	184,514,645	183,209,655
Common sock, shares outstanding (in shares)	184,514,645	183,209,655
Class B
Common stock, shares authorized (in shares)	10,967,883	10,967,883
Common stock, shares issued (in shares)	7,716,209	7,813,209
Common sock, shares outstanding (in shares)	7,716,209	7,813,209

Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue
Total revenue	$ 12,134	$ 5,333
Operating costs and expenses
Cost of revenue	12,448	7,799
Research and development	46,677	32,441
General and administrative	22,874	21,074
Total operating costs and expenses	81,999	61,314
Loss from operations	(69,865)	(55,981)
Other income, net	4,538	2
Net loss	$ (65,327)	$ (55,979)
Per share data
Net loss per share of Class A and B common stock, basic (in dollars per share)	$ (0.34)	$ (0.33)
Net loss per share of Class A and B common stock, diluted (in dollars per share)	$ (0.34)	$ (0.33)
Weighted-average shares (Class A and B) outstanding, basic (in shares)	191,618,238	170,690,392
Weighted-average shares (Class A and B) outstanding, diluted (in shares)	191,618,238	170,690,392
Operating revenue
Revenue
Total revenue	$ 12,134	$ 5,299
Grant revenue
Revenue
Total revenue	$ 0	$ 34

Condensed Consolidated Statements of Comprehensive Loss (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net loss	$ (65,327)	$ (55,979)
Unrealized loss on investments	0	(222)
Net realized loss on investments reclassified into net loss	0	39
Other comprehensive loss	0	(183)
Comprehensive loss	$ (65,327)	$ (56,162)

- 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

Condensed Consolidated Statements of Stockholders’ Equity (Deficit) (unaudited) - USD ($) $ in Thousands	Total	Common Stock (Class A and B)	Additional Paid-in-Capital	Accumulated Deficit	Accumulated other comprehensive loss
Common stock, shares outstanding at beginning period (in shares) at Dec. 31, 2021		170,272,462
Total stockholders’ equity (deficit) at beginning of period at Dec. 31, 2021	$ 542,938	$ 2	$ 943,142	$ (400,080)	$ (126)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(55,979)			(55,979)
Other comprehensive loss	(183)				(183)
Stock option exercises and other (in shares)		805,626
Stock option exercises and other	1,158		1,158
Stock-based compensation	5,632		5,632
Common stock, shares outstanding at end period (in shares) at Mar. 31, 2022		171,078,088
Total stockholders’ equity (deficit) at end of period at Mar. 31, 2022	$ 493,566	$ 2	949,932	(456,059)	(309)
Common stock, shares outstanding at beginning period (in shares) at Dec. 31, 2022	191,022,864	191,022,864
Total stockholders’ equity (deficit) at beginning of period at Dec. 31, 2022	$ 485,806	$ 2	1,125,360	(639,556)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(65,327)			(65,327)
Other comprehensive loss	$ 0
Stock option exercises and other (in shares)	582,395	1,207,990
Stock option exercises and other	$ 882		882
Stock-based compensation	$ 8,814		8,814
Common stock, shares outstanding at end period (in shares) at Mar. 31, 2023	192,230,854	192,230,854
Total stockholders’ equity (deficit) at end of period at Mar. 31, 2023	$ 430,175	$ 2	$ 1,135,056	$ (704,883)	$ 0

- 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

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

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+ Details

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities
Net loss	$ (65,327)	$ (55,979)
Adjustments to reconcile net loss to net cash from operating activities:
Depreciation and amortization	3,728	2,767
Stock-based compensation	8,814	5,632
Fixed asset impairment	1,169	0
Lease expense	1,988	1,742
Other, net	716	402
Changes in operating assets and liabilities:
Other receivables and assets	(317)	(7,551)
Unearned revenue	(12,134)	144,701
Accounts payable	(339)	1,344
Accrued development expense	676	1,413
Accrued expenses and other current liabilities	(9,846)	(15,903)
Operating lease liabilities	(2,444)	(1,265)
Other, net	0	85
Net cash provided by (used in) operating activities	(73,316)	77,388
Cash flows from investing activities
Purchases of property and equipment	(5,175)	(4,342)
Purchase of an intangible asset	(165)	0
Sales and maturities of investments	0	147,646
Net cash provided by (used in) investing activities	(5,340)	143,304
Cash flows from financing activities
Proceeds from equity incentive plans	1,946	2,106
Repayment of long-term debt	(24)	(22)
Net cash provided by financing activities	1,922	2,084
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(2)	0
Net change in cash, cash equivalents and restricted cash	(76,736)	222,776
Cash, cash equivalents and restricted cash, beginning of period	559,112	295,349
Cash, cash equivalents and restricted cash, end of period	482,376	518,125
Supplemental schedule of non-cash investing and financing activities
Accrued property and equipment	244	4,328
Right-of-use asset additions and modifications	3,520	1,548
Financed equipment purchase	1,214	0
Supplemental schedule of cash flow information
Cash paid for operating leases	2,444	1,265
Cash paid for interest	$ 13	$ 14

Description of the Business	3 Months Ended
Description of the Business	Mar. 31, 2023
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, the Company converted to a Delaware corporation and changed its name to Recursion Pharmaceuticals, Inc. Recursion is a clinical stage TechBio company decoding biology to industrialize drug discovery. The Recursion Operating System (OS), a platform built across diverse technologies, enables the Company to map and navigate trillions of biological and chemical relationships within the Recursion Data Universe, one of the world’s largest proprietary biological and chemical datasets. The Company integrates physical and digital components as iterative loops of atoms and bits scaling wet lab biology and chemistry data organized into virtuous cycles with computational tools to rapidly translate in silico hypotheses into validated insights and novel chemistry. As of March 31, 2023, the Company had an accumulated deficit of $704.9 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 primarily through the issuance of convertible preferred stock and the issuance of Class A common stock (see Note 7, “Common Stock” for additional details). Additionally, we have received payments of $180.0 million from our strategic partnerships (see Note 8, “Collaborative Development Contracts” for additional details). Recursion will likely be required to raise additional capital. As of March 31, 2023, 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. Recursion believes that the Company’s existing cash and cash equivalents will be sufficient to fund the Company’s operating expenses and capital expenditures for at least the next 12 months.

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation Basis of Presentation The unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Accordingly, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) have been condensed or omitted. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes for the year ended December 31, 2022. It is management’s opinion that these condensed consolidated financial statements include all normal and recurring adjustments necessary for a fair presentation of the Company’s financial statements. Revenues and net loss for any interim period are not necessarily indicative of future or annual results. Recent Accounting Pronouncements New accounting pronouncements are routinely issued by the Financial Accounting Standards Board (FASB) or other standard setting bodies and adopted by Recursion as of the specified effective date. The Company does not expect the impact of recently issued standards that are not yet effective will have a material impact on its condensed consolidated financial statements and disclosures.

Supplemental Financial Information

3 Months Ended

Mar. 31, 2023

Supplemental Financial Information [Abstract]

Supplemental Financial Information

Property and Equipment


	March 31,		December 31,
(in thousands)	2023		2022
Lab equipment	$	53,323	$	47,524
Leasehold improvements	42,958		41,872
Office equipment	21,839		20,164
Construction in progress	5,518		8,747
Property and equipment, gross	123,638		118,307
Less: Accumulated depreciation	(33,634)		(30,115)
Property and equipment, net	$	90,004	$	88,192

Depreciation expense on property and equipment was $3.6 million and $2.7 million during the three months ended March 31, 2023 and 2022, respectively. The Company recorded an impairment of $1.2 million during the three months ended March 31, 2023 related to a construction project for leasehold improvements as the Company no longer intended to use them. The impairment was recorded in “General and Administrative” in the Condensed Consolidated Statements of Operations.

For the three months ended March 31, 2023, the Company initiated and completed a project to upgrade the BioHive supercomputer for $1.7 million. The supercomputer was classified as office equipment in the above table. The increase in lab equipment from the prior year was driven by the completion of several labs in the headquarters expansion. The majority of the balance was included in construction in progress in the prior year. The construction in progress balance primarily relates to lab equipment under construction.

Accrued Expenses and Other Liabilities


	March 31,		December 31,
(in thousands)	2023		2022
Accrued compensation	$	10,240	$	20,433
Accrued development expenses	4,048		3,372
Accrued early discovery expenses	3,227		3,192
Materials received not invoiced	4,036		2,028
Accrued other expenses	3,490		3,879
Accrued expense and other liabilities	$	25,041	$	32,904

Notes Payable

In January 2023, the Company entered into a financing agreement for borrowing $1.9 million as part of the supercomputer upgrade project. The debt will be repaid over a three-year period at a 7% interest rate. As of March 31, 2023, the outstanding balance was $1.2 million.

In 2018, the Company borrowed $992 thousand, which was available as part of a lease agreement for use on tenant improvements. Under the terms of the lease, the note will be repaid over a 10-year period at an 8% interest rate. As of March 31, 2023, the outstanding balance was $609 thousand.

Interest Income, Net


	Three months ended March 31,
(in thousands)	2023		2022
Interest income	$	4,660	$	87
Interest expense	(19)		(14)
Interest income, net	$	4,641	$	73

For the three months ended March 31, 2023, interest income primarily related to earnings on cash and cash equivalents in money market funds. Interest income was included in “Other income, net” on the Condensed Consolidated Statements of Operations.

Leases

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Leases

The Company has entered into various long-term real estate leases primarily related to office, research and development and operating activities. The Company’s leases have remaining terms from 1 to 10 years, and some of those leases include options that provide Recursion with the ability to extend the lease term for five years. The options are included in the lease term when it is reasonably certain that the option will be exercised.

For the three months ended March 31, 2023, Recursion entered into a lease modification resulting in an increase to the related right-of-use asset and lease liability of $3.5 million. The modification had no impact to the Condensed Consolidated Statements of Operations.

In May 2022, the Company entered into a lease agreement for laboratory and office space in Toronto, Ontario with approximately 26,320 square feet (the “Toronto Lease”). This lease was separated into multiple lease components based on the intended use of the portions of the space. For some of those components, the right of use began May 2022 when the control of the assets were obtained. The right of use asset for the remaining lease component is expected to begin in the second quarter of 2023. The Toronto Lease terms for each component are ten years with a five-year renewal option. The Toronto Lease includes provisions for escalating rent payments and a tenant improvement allowance of up to $1.5 million. Total fixed payments are expected to be approximately $10.8 million with additional variable expenses, including building expenses.

See Note 6, “Commitments and Contingencies” for information on the Industry lease.

The components of the lease cost are as follows:


	Three months ended March 31,
(in thousands)	2023		2022
Operating lease cost	$	1,998	$	1,827
Variable lease cost	657		204
Lease cost	$	2,655	$	2,031

Lease term and discount rates as of March 31, 2023 were:


(in thousands)	March 31, 2023
Operating leases
Weighted-average remaining lease term (years)	7.3
Weighted-average discount rate	7.6	%

Maturities of operating lease liabilities as of March 31, 2023 were:


(in thousands)	March 31, 2023
Remainder of 2023	$	5,906
2024	9,561
2025	9,745
2026	9,996
2027	10,254
Thereafter	24,081
Total lease payments	69,543
Less: imputed interest	(18,332)
Present value of lease liabilities	$	51,211

Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill

There were no changes to the carrying amount of goodwill during the three months ended March 31, 2023 and 2022. No goodwill impairment was recorded during the three months ended March 31, 2023 and 2022.

Intangible Assets, Net

The following table summarizes intangible assets:


	March 31, 2023						December 31, 2022
(in thousands)	Gross carrying amount		Accumulated Amortization		Net carrying amount		Gross carrying amount		Accumulated Amortization		Net carrying amount
Definite-lived intangible asset	$	1,376	$	(962)	$	414	$	1,211	$	(809)	$	402
Indefinite-lived intangible asset	904		—		904		904		—		904
Intangible assets, net	$	2,280	$	(962)	$	1,318	$	2,115	$	(809)	$	1,306

Amortization expense was $152 thousand and $76 thousand during the three months ended March 31, 2023 and 2022, respectively. Amortization expense was included in research and development in the Condensed Consolidated Statements of Operations.

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 three months ended March 31, 2023 and 2022.

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Contract Obligations In the normal course of business, the Company enters into contracts with clinical research organizations, drug manufacturers and other vendors for preclinical and clinical research studies, research and development supplies and other services and products for operating purposes. These contracts generally provide for termination on notice and are cancellable contracts. 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 March 31, 2023 and December 31, 2022, as no amounts were probable. 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 In February 2021, the Company entered into a lease agreement for laboratory and office space (the Industry Lease) with Industry Office SLC, LLC (the landlord). For the three months ended March 31, 2023, the Company determined there were several issues related to the agreement including with the assets being constructed and the timing of the project. The Company is in negotiations with the landlord. There are a wide-range of potential outcomes, some of which include: the termination of the lease contract or legal action. Several of the potential outcomes could require the Company to distribute a payment to the landlord. The Company is unable to estimate the possible payment or range of payments. As of March 31, 2023, the Company had no liability recorded for these events as an unfavorable outcome was not probable.

Common Stock	3 Months Ended
Common Stock	Mar. 31, 2023
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 March 31, 2023 and December 31, 2022, no dividends had been declared. Private Placement In October 2022, Recursion issued 15,336,734 shares of the Company’s Class A common stock (the Shares) at a purchase price of $9.80 per share in a private placement (the Private Placement) to qualified institutional buyers and institutional accredited investors (the Purchasers) for net proceeds of $143.7 million, after deducting fees and offering costs of $6.6 million. Registration Rights Agreement In October 2022, in connection with the Private Placement, the Company entered into a Registration Rights Agreement (the Agreement) providing for the registration for resale of the Shares. A prospectus supplement to a registration statement (File No. 333-264845) was subsequently filed in October 2022 to register the resale of the Shares by the Purchasers. The Agreement must remain effective until registrable securities covered by the Agreement have been publicly sold by the holders or all shares cease to be registrable securities. In the event the holders cannot sell their shares due to certain circumstances causing the Agreement to be ineffective, the Company must pay each holder of shares outstanding on the date and each month thereafter 1.0% of the aggregate purchase price paid by the holder without limit until the Agreement is cured. As of March 31, 2023, there was no accrued liability related to this agreement, as it was not probable that a payment would be required. 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., the Company’s Chief Executive Officer (CEO), or his affiliates. As of March 31, 2023, Dr. Gibson and his affiliates held outstanding shares of Class B common stock representing approximately 29% 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 exchangeable equity awards held by Dr. Gibson had been fully vested, exercised and exchanged for shares of Class B common stock as of March 31, 2023, Dr. Gibson and his affiliates would hold approximately 32% 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.

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+ Details

Collaborative Development Contracts	3 Months Ended
Collaborative Development Contracts	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Collaborative Development Contracts	Collaborative Development Contracts Roche and Genentech Description In December 2021, Recursion entered into a collaboration and license agreement with Roche and Genentech (collectively referred to as Roche). Recursion is constructing, using the Company’s imaging technology and proprietary machine-learning algorithms, unique maps of the inferred relationships amongst perturbation phenotypes in a given cellular context with the goal to discover and develop therapeutic small molecule programs in a gastrointestinal cancer indication and in key areas of neuroscience. Roche and Recursion will collaborate to select certain novel inferences with respect to small molecules or targets generated from the Phenomaps for further validation and optimization as collaboration programs. Roche and Recursion may also combine sequencing datasets from Roche with Recursion’s Phenomaps and collaborate to generate new algorithms to produce multi-modal maps from which additional collaboration programs may be initiated. For every collaboration program that successfully identifies potential therapeutic small molecules or validates a target, Roche will have an option to obtain an exclusive license to develop and commercialize such potential therapeutic small molecules or to exploit such target in the applicable exclusive field. Pricing In January 2022, Recursion received a $150.0 million non-refundable upfront payment from the Company’s collaboration with Roche. Recursion is eligible for additional milestone payments based on performance progress of the collaboration. Each of the Phenomaps requested by Roche and created by Recursion may be subject to either an initiation fee, acceptance fee or both. Such fees could exceed $250.0 million for 16 accepted Phenomaps. In addition, for a period of time after Roche’s acceptance of certain Phenomaps, Roche will have the option to obtain, subject to payment of an exercise fee, rights to use outside the collaboration the raw images generated in the course of creating those Phenomaps. If Roche exercises its external use option for all 12 eligible Phenomaps, Roche’s associated exercise fee payments to Recursion could exceed $250.0 million. 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. Accounting This agreement represents a transaction with a customer and therefore is accounted for in accordance with Accounting Standards Codification (ASC) 606. Recursion has determined that it has three performance obligations, one related to gastrointestinal cancer and two in neuroscience. These performance obligations are for performing research and development services for Roche to identify targets and medicines. The performance obligations also include potential licenses related to the intellectual property. The Company concluded that licenses within the contract are not distinct from the research and development services as they are interrelated due to the fact that the research and development services significantly impact the potential licenses. Any additional services are considered customer options and will be considered as separate contracts for accounting purposes. The Company has determined the transaction price to be $150.0 million, comprised of the upfront payment. Recursion will fully constrain the amounts of variable consideration to be received from potential milestones considering the stage of development and the risks associated with the remaining development required to achieve each milestone. Recursion will re-evaluate the transaction price each reporting period. The transaction price was allocated to the performance obligations based on the estimated relative stand-alone selling price of each performance obligation as determined using an expected cost plus margin approach. The Company recognizes revenue over time based on costs incurred relative to total expected costs to perform the research and development services. Recursion determined that this method provides a faithful depiction of the transfer of control to the customer. This method of recognizing revenue requires the Company to make estimates of total costs to provide the services required under the performance obligations. Significant inputs used to determine the total costs included the length of time required, service hours performed by Company employees and materials costs. A significant change in these estimates could have a material effect on the timing and amount of revenue recognized in future periods. Recursion has estimated the completion of the performance obligations by 2025. Bayer AG Description 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. Pricing In October 2020, the Company received a $30.0 million non-refundable upfront payment. 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. Accounting 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 $30.0 million, comprised of the upfront payment. The Company 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 the 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. Recursion has estimated the completion of the performance obligation in 2023. Additional Revenue Disclosures Recursion recognized $12.1 million of operating revenue during the three months ended March 31, 2023, all of which was included in the unearned revenue balance as of December 31, 2022. Of the revenue recognized during the three months ended March 31, 2022, $2.5 million was included in the unearned revenue balance as of December 31, 2021. Revenue recognized was from upfront payments received at the inception of the related contracts, which decreased the initial unearned revenue recognized. As of March 31, 2023, the Company had $7.2 million of costs incurred to fulfill a contract on its Condensed Consolidated Balance Sheet within “Other current assets.” Unearned revenue was classified as short-term and long-term on the Condensed Consolidated Balance Sheets based on the Company’s estimate of revenue that will be recognized during the next twelve months.

Stock-Based Compensation

3 Months Ended

Mar. 31, 2023

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, restricted stock units (RSUs), stock appreciation rights, restricted stock awards and other forms of stock-based compensation.

As of March 31, 2023, 20,652,818 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 Condensed Consolidated Statements of Operations:


	Three months ended March 31,
(in thousands)	2023		2022
Cost of revenue	$	1,011	$	348
Research and development	2,683		1,635
General and administrative	4,578		3,361
Total	$	8,272	$	5,344

Stock Options

Stock options are primarily granted to executive leaders at the Company, generally vest over four years and expire no later than 10 years from the date of grant. Stock option activity during the three months ended March 31, 2023 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, 2022	16,154,924	$	5.10	7.5	$	67,997
Granted	2,757,614	8.55
Cancelled	(671,116)	7.41
Exercised	(582,395)	2.03			3,527
Outstanding as of March 31, 2023	17,659,027	$	5.65	7.6	$	50,807
Exercisable as of March 31, 2023	9,233,673	$	4.02	6.6	$	37,544

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 three months ended March 31, 2023 and 2022 were $5.32 and $7.42, respectively.

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


	Three months ended March 31,
	2023		2022
Expected term (in years)	6.3		6.2
Expected volatility	64	%	63	%
Expected dividend yield	—		—
Risk-free interest rate	3.5	%	1.7	%

As of March 31, 2023, $37.1 million of unrecognized compensation cost related to stock options is expected to be recognized as expense over approximately the next three years.

RSUs

Equity awards granted to employees primarily consist of RSUs and 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 three months ended March 31, 2023:


	Stock units	Weighted-average grant date fair value
Outstanding as of December 31, 2022	6,894,525	$	8.17
Granted	1,916,806	9.05
Vested	(484,444)	8.58
Forfeited	(303,686)	8.31
Outstanding as of March 31, 2023	8,023,201	$	8.19

The fair market value of RSUs vested was $5.2 million during the three months ended March 31, 2023. As of March 31, 2023, $59.8 million of unrecognized compensation cost related to RSUs is expected to be recognized as expense over approximately the next three years.

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company did not record any income tax expense during the three months ended March 31, 2023 and 2022. The Company has historically incurred operating losses and maintains a full valuation allowance against its net deferred tax assets. Foreign taxes were insignificant during the three months ended March 31, 2023. Net operating losses (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 ownership has occurred or whether there have been multiple ownership changes since inception due to the significant complexity and cost associated with such a study. If the Company has experienced a change of ownership, 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. 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 2019 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 https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Net Loss Per Share

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Net Loss Per Share

For the three months ended March 31, 2023 and 2022, 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. For the three months ended March 31, 2023 and 2022, the Company reported a net loss and therefore basic and diluted loss per share were the same.

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 three months ended March 31, 2023 and 2022.

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


	Three months ended				Three months ended
	March 31, 2023				March 31, 2022
(in thousands, except share amount)	Class A		Class B		Class A		Class B
Numerator:
Allocation of undistributed earnings	$	(62,679)	$	(2,648)	$	(53,022)	$	(2,957)
Denominator:
Weighted average common shares outstanding	183,851,596		7,766,642		161,674,169		9,016,223
Net loss per share, basic and diluted	$	(0.34)	$	(0.34)	$	(0.33)	$	(0.33)

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:


	Three months ended
	March 31, 2023	March 31, 2022
Stock based compensation	8,534,876	12,089,621

Fair Value Measurements

3 Months Ended

Mar. 31, 2023

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 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.

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)	March 31, 2023		Level 1		Level 2		Level 3
Assets
Cash equivalents:
Money market funds	$	408,711	$	408,711	$	—	$	—
Restricted cash	9,231		9,231		—		—
Total assets	$	417,942	$	417,942	$	—	$	—


			Basis of fair value measurement
(in thousands)	December 31, 2022		Level 1		Level 2		Level 3
Assets
Cash equivalents:
Money market funds	$	404,613	$	404,613	$	—	$	—
Restricted cash	9,200		9,200		—		—
Total assets	$	413,813	$	413,813	$	—	$	—

In addition to the financial instruments that are recognized at fair value on the Condensed 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.

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


	Book values				Fair values
(in thousands)	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Liabilities
Current portion of notes payable	$	661	$	97	$	661	$	97
Notes payable, net of current portion	1,179		536		1,179		536
Total liabilities	$	1,840	$	633	$	1,840	$	633

- 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

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Cyclica Inc. On May 8, 2023, Recursion and its indirect wholly owned subsidiary (the “Cyclica Purchaser”) entered into a definitive agreement pursuant to which, subject to applicable closing conditions, the Cyclica Purchaser will, among other things acquire all of the outstanding equity securities of Cyclica Inc. (“Cyclica”) to be paid in the form of shares of Recursion Class A common stock (the “Class A Shares”), cash and the assumption by Recursion of outstanding options to purchase shares of Cyclica. Following the completion of the Cyclica Acquisition, Recursion would issue up to approximately 6.9 million Class A Shares in the Cyclica Acquisition (including Class A Shares issuable upon the exercise of options to purchase shares of Cyclica assumed by Recursion in the Cyclica Acquisition) based on a reference price of Class A Shares of $5.78 (the “Reference Price”), which is the volume weighted average price of Class A Shares over the 30 days ended May 5, 2023. The purchase price for the Cyclica Acquisition is subject to customary closing and post-closing purchase price adjustments, which may result in the issuance of additional or fewer Class A Shares. In addition, under the terms of the Cyclica Purchase Agreement, in certain circumstances Recursion may pay cash consideration to Cyclica shareholders in lieu of Class A Shares at a value based on the Reference Price, which may result in the issuance of fewer Class A Shares. Recursion expects to close the transaction in the second quarter of 2023. Cyclica has built a digital chemistry software suite which enables mechanism of action deconvolution and generative chemistry suggestions based on desired targets. Cyclica’s platform is expected to enhance the optimization of Recursion’s compounds for efficacy while minimizing liabilities through generative machine learning approaches. Cyclica is located in Toronto Canada and the teams at Cyclica will be fully integrated into Recursion. Valence Discovery Inc. On May 8, 2023, Recursion and its indirect wholly owned subsidiary (the “Valence Purchaser”) entered into a definitive agreement (the “Valence Purchase Agreement”) pursuant to which, subject to applicable closing conditions, the Valence Purchaser will, among other things, acquire all of the outstanding equity securities of Valence Discovery Inc. (“Valence”) to be paid in the form of (i) Class A Shares and shares of the Valence Purchaser (the “Exchangeable Shares”), (ii) cash and (iii) the assumption by Recursion of outstanding options to purchase shares of Valence. Each Exchangeable Share will be exchangeable into one Class A Share at the option of the holder, subject to certain adjustments. Following the completion of the Valence Acquisition, Recursion will issue up to approximately 8.2 million Class A Shares in the Valence Acquisition (including Class A Shares issuable upon the exchange of Exchangeable Shares and upon the exercise of options to purchase shares of Valence assumed by Recursion in the Valence Acquisition) based on the Reference Price. The purchase price for the Valence Acquisition is subject to customary closing and post-closing purchase price adjustments, which may result in the issuance of additional or fewer Class A Shares (including Class A Shares issuable upon the exchange of Exchangeable Shares). In addition, under the terms of the Valence Purchase Agreement, in certain circumstances Recursion may pay cash consideration to Valence shareholders in lieu of Exchangeable Shares or Class A Shares at a value based on the Reference Price, which may result in the issuance of fewer Class A Shares (including Class A Shares issuable upon the exchange of Exchangeable Shares). Recursion expects to close the transaction in the second quarter of 2023. Valence is a machine learning (ML) / artificial intelligence digital chemistry company that creates chemical compound and interaction representations using graph neural networks. Valence designs novel chemical matter using artificial intelligence and proprietary computation tools. Valence is located in Montréal Canada and will work on applied ML research across chemistry and biology.

Basis of Presentation (Policies)	3 Months Ended
Basis of Presentation (Policies)	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of PresentationThe unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Accordingly, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) have been condensed or omitted. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes for the year ended December 31, 2022.
Recent Accounting Pronouncements	Recent Accounting Pronouncements New accounting pronouncements are routinely issued by the Financial Accounting Standards Board (FASB) or other standard setting bodies and adopted by Recursion as of the specified effective date. The Company does not expect the impact of recently issued standards that are not yet effective will have a material impact on its condensed consolidated financial statements and disclosures.

Supplemental Financial Information (Tables)

3 Months Ended

Mar. 31, 2023

Supplemental Financial Information [Abstract]

Schedule of Property and Equipment

Property and Equipment


	March 31,		December 31,
(in thousands)	2023		2022
Lab equipment	$	53,323	$	47,524
Leasehold improvements	42,958		41,872
Office equipment	21,839		20,164
Construction in progress	5,518		8,747
Property and equipment, gross	123,638		118,307
Less: Accumulated depreciation	(33,634)		(30,115)
Property and equipment, net	$	90,004	$	88,192

Schedule of Accrued Expenses and Other Liabilities

Accrued Expenses and Other Liabilities


	March 31,		December 31,
(in thousands)	2023		2022
Accrued compensation	$	10,240	$	20,433
Accrued development expenses	4,048		3,372
Accrued early discovery expenses	3,227		3,192
Materials received not invoiced	4,036		2,028
Accrued other expenses	3,490		3,879
Accrued expense and other liabilities	$	25,041	$	32,904

Schedule of Interest Income and Expense Disclosure

Interest Income, Net


	Three months ended March 31,
(in thousands)	2023		2022
Interest income	$	4,660	$	87
Interest expense	(19)		(14)
Interest income, net	$	4,641	$	73

Leases (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Schedule of Components of Lease Cost, Supplemental Cash Flow Information Related to Leases, Lease Term and Discount Rates

The components of the lease cost are as follows:


	Three months ended March 31,
(in thousands)	2023		2022
Operating lease cost	$	1,998	$	1,827
Variable lease cost	657		204
Lease cost	$	2,655	$	2,031

Lease term and discount rates as of March 31, 2023 were:


(in thousands)	March 31, 2023
Operating leases
Weighted-average remaining lease term (years)	7.3
Weighted-average discount rate	7.6	%

Schedule of Maturities of Operating Lease Liabilities

Maturities of operating lease liabilities as of March 31, 2023 were:


(in thousands)	March 31, 2023
Remainder of 2023	$	5,906
2024	9,561
2025	9,745
2026	9,996
2027	10,254
Thereafter	24,081
Total lease payments	69,543
Less: imputed interest	(18,332)
Present value of lease liabilities	$	51,211

Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of finite-lived intangible assets

The following table summarizes intangible assets:


	March 31, 2023						December 31, 2022
(in thousands)	Gross carrying amount		Accumulated Amortization		Net carrying amount		Gross carrying amount		Accumulated Amortization		Net carrying amount
Definite-lived intangible asset	$	1,376	$	(962)	$	414	$	1,211	$	(809)	$	402
Indefinite-lived intangible asset	904		—		904		904		—		904
Intangible assets, net	$	2,280	$	(962)	$	1,318	$	2,115	$	(809)	$	1,306

Schedule of indefinite-lived intangible assets

The following table summarizes intangible assets:


	March 31, 2023						December 31, 2022
(in thousands)	Gross carrying amount		Accumulated Amortization		Net carrying amount		Gross carrying amount		Accumulated Amortization		Net carrying amount
Definite-lived intangible asset	$	1,376	$	(962)	$	414	$	1,211	$	(809)	$	402
Indefinite-lived intangible asset	904		—		904		904		—		904
Intangible assets, net	$	2,280	$	(962)	$	1,318	$	2,115	$	(809)	$	1,306

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Stock-based Compensation Expenses


	Three months ended March 31,
(in thousands)	2023		2022
Cost of revenue	$	1,011	$	348
Research and development	2,683		1,635
General and administrative	4,578		3,361
Total	$	8,272	$	5,344

Schedule of Share-based Payment Arrangement, Option, Activity

Stock option activity during the three months ended March 31, 2023 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, 2022	16,154,924	$	5.10	7.5	$	67,997
Granted	2,757,614	8.55
Cancelled	(671,116)	7.41
Exercised	(582,395)	2.03			3,527
Outstanding as of March 31, 2023	17,659,027	$	5.65	7.6	$	50,807
Exercisable as of March 31, 2023	9,233,673	$	4.02	6.6	$	37,544

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:


	Three months ended March 31,
	2023		2022
Expected term (in years)	6.3		6.2
Expected volatility	64	%	63	%
Expected dividend yield	—		—
Risk-free interest rate	3.5	%	1.7	%

Schedule of Nonvested RSU Activity

The following table summarizes Recursion’s RSU activity during the three months ended March 31, 2023:


	Stock units	Weighted-average grant date fair value
Outstanding as of December 31, 2022	6,894,525	$	8.17
Granted	1,916,806	9.05
Vested	(484,444)	8.58
Forfeited	(303,686)	8.31
Outstanding as of March 31, 2023	8,023,201	$	8.19

Net Loss Per Share (Tables)

3 Months Ended

Mar. 31, 2023

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:


	Three months ended				Three months ended
	March 31, 2023				March 31, 2022
(in thousands, except share amount)	Class A		Class B		Class A		Class B
Numerator:
Allocation of undistributed earnings	$	(62,679)	$	(2,648)	$	(53,022)	$	(2,957)
Denominator:
Weighted average common shares outstanding	183,851,596		7,766,642		161,674,169		9,016,223
Net loss per share, basic and diluted	$	(0.34)	$	(0.34)	$	(0.33)	$	(0.33)

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:


	Three months ended
	March 31, 2023	March 31, 2022
Stock based compensation	8,534,876	12,089,621

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

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)	March 31, 2023		Level 1		Level 2		Level 3
Assets
Cash equivalents:
Money market funds	$	408,711	$	408,711	$	—	$	—
Restricted cash	9,231		9,231		—		—
Total assets	$	417,942	$	417,942	$	—	$	—


			Basis of fair value measurement
(in thousands)	December 31, 2022		Level 1		Level 2		Level 3
Assets
Cash equivalents:
Money market funds	$	404,613	$	404,613	$	—	$	—
Restricted cash	9,200		9,200		—		—
Total assets	$	413,813	$	413,813	$	—	$	—

Schedule of 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)	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Liabilities
Current portion of notes payable	$	661	$	97	$	661	$	97
Notes payable, net of current portion	1,179		536		1,179		536
Total liabilities	$	1,840	$	633	$	1,840	$	633

Description of the Business (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ 704,883	$ 639,556
Proceeds received from strategic partnerships	$ 180,000

Supplemental Financial Information - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 123,638	$ 118,307
Less: Accumulated depreciation	(33,634)	(30,115)
Property and equipment, net	90,004	88,192
Lab equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	53,323	47,524
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	42,958	41,872
Office equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	21,839	20,164
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 5,518	$ 8,747

Supplemental Financial Information - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		12 Months Ended
	Jan. 31, 2023	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Depreciation		$ 3,600	$ 2,700
Fixed asset impairment		1,169	0
Purchases of property and equipment		5,175	$ 4,342
Notes Payable
Property, Plant and Equipment [Line Items]
Issuance of long-term debt		1,900
Debt instrument, term (in years)	3 years
Debt Instrument, interest rate (as percent)	7.00%
Notes payable		1,200
Notes Payable \| Station 41 Lease
Property, Plant and Equipment [Line Items]
Issuance of long-term debt				$ 992
Debt instrument, term (in years)				10 years
Debt Instrument, interest rate (as percent)				8.00%
Notes payable		609
Leasehold improvements
Property, Plant and Equipment [Line Items]
Fixed asset impairment		1,200
BioHive Supercomputer
Property, Plant and Equipment [Line Items]
Purchases of property and equipment		$ 1,700

Supplemental Financial Information - Schedule of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Supplemental Financial Information [Abstract]
Accrued compensation	$ 10,240	$ 20,433
Accrued development expenses	4,048	3,372
Accrued early discovery expenses	3,227	3,192
Materials received not invoiced	4,036	2,028
Accrued other expenses	3,490	3,879
Accrued expenses and other liabilities	$ 25,041	$ 32,904

Supplemental Financial Information - Schedule of Interest Income and Expense Disclosure (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Supplemental Financial Information [Abstract]
Interest expense	$ (19)	$ (14)
Interest income	4,660	87
Interest income, net	$ 4,641	$ 73

Leases - Narrative (Details) $ in Thousands	1 Months Ended	3 Months Ended
Leases - Narrative (Details) $ in Thousands	May 31, 2022 USD ($) ft²	Mar. 31, 2023 USD ($)
Lessee, Lease, Description [Line Items]
Operating lease, renewal term (in years)		5 years
Increase in operating lease right-of-use assets		$ 3,500
Increase in operating lease liabilities		3,500
Total lease payments		$ 69,543
Toronto lease
Lessee, Lease, Description [Line Items]
Operating lease, renewal term (in years)	5 years
Square footage of leased space (in square feet) \| ft²	26,320
Lease term	10 years
Tenant improvement allowance	$ 1,500
Total lease payments	$ 10,800
Minimum
Lessee, Lease, Description [Line Items]
Remaining operating lease term (in years)		1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining operating lease term (in years)		10 years

Leases - Components of Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Operating lease cost	$ 1,998	$ 1,827
Variable lease cost	657	204
Lease cost	$ 2,655	$ 2,031

Leases - Lease Term and Discount Rates (Details)	Mar. 31, 2023
Leases [Abstract]
Weighted-average remaining lease term (years)	7 years 3 months 18 days
Weighted-average discount rate	7.60%

Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Leases [Abstract]
Remainder of 2023	$ 5,906
2024	9,561
2025	9,745
2026	9,996
2027	10,254
Thereafter	24,081
Total lease payments	69,543
Less: imputed interest	(18,332)
Present value of lease liabilities	$ 51,211

Goodwill and Intangible Assets (Details) - USD ($)	3 Months Ended
Goodwill and Intangible Assets (Details) - USD ($)	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Change in carrying amount of goodwill	$ 0	$ 0
Goodwill impairment	0	0
Intangible Assets, Net
Gross carrying amount	1,376,000		$ 1,211,000
Accumulated Amortization	(962,000)		(809,000)
Net carrying amount	414,000		402,000
Indefinite-lived intangible asset	904,000		904,000
Intangible assets, gross	2,280,000		2,115,000
Intangible assets, net	1,318,000		$ 1,306,000
Amortization expense	152,000	76,000
Impairment of indefinite-lived intangible assets	$ 0	$ 0

Commitments and Contingencies (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Loss contingency accrual	$ 0	$ 0	$ 0

Common Stock (Details)	1 Months Ended	3 Months Ended	12 Months Ended
Common Stock (Details)	Oct. 31, 2022 USD ($) $ / shares shares	Mar. 31, 2023 USD ($) vote	Dec. 31, 2022 USD ($)	Apr. 30, 2021 vote class
Class of Stock [Line Items]
Dividends, stock		$ 0	$ 0
Percent of aggregate purchase price paid by the holder due if agreement is broken	1.00%
Registration rights agreement, accrued liability		$ 0
Number of classes of common stock authorized \| class				2
Common stock, conversion ratio				1
Company CEO and Affiliates
Class of Stock [Line Items]
Affiliated holders, ownership percentage		0.29
Affiliated holders, potential ownership percentage when outstanding equity awards vest		0.32
Class A
Class of Stock [Line Items]
Vote per share of common stock (in votes) \| vote		1		1
Class A \| Private Placement
Class of Stock [Line Items]
IPO, number of shares issued (in shares) \| shares	15,336,734
Price per share (in dollars per share) \| $ / shares	$ 9.80
IPO, net proceeds received	$ 143,700,000
IPO, underwriting discounts and commissions	$ 6,600,000
Class B
Class of Stock [Line Items]
Vote per share of common stock (in votes) \| vote		10		10

Collaborative Development Contracts (Details) $ in Thousands	1 Months Ended			3 Months Ended
	Jan. 31, 2022 USD ($) phenomap program performance_obligation	Oct. 31, 2020 USD ($) performance_obligation	Aug. 31, 2020 project	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Total revenue				$ 12,134	$ 5,333
Unearned revenue				57,761		$ 56,726
Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Total revenue				12,100
Collaborative Arrangement \| Roche and Genentech
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Remaining unearned revenue	$ 150,000
Number of performance obligations under the agreement (in performance obligations) \| performance_obligation	3
Remaining performance obligation revenue	$ 150,000
Unearned revenue				$ 7,200	$ 2,500
Collaborative Arrangement \| Roche and Genentech \| Phenomaps Creation
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Research project, fees and milestones payments receivable for an option on a lead series	$ 250,000
Number of eligible phenomaps (in phenomaps) \| phenomap	16
Collaborative Arrangement \| Roche and Genentech \| Phenomaps Raw Images
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Research project, fees and milestones payments receivable for an option on a lead series	$ 250,000
Number of eligible phenomaps (in phenomaps) \| phenomap	12
Collaborative Arrangement \| Roche and Genentech \| Developed and Commercialized Programs
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Research project, fees and milestones payments receivable for an option on a lead series	$ 300,000
Number of projects that may be initiated (in projects) \| program	40
Collaborative Arrangement \| Roche and Genentech \| Gastrointestinal Cancer
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of performance obligations under the agreement (in performance obligations) \| performance_obligation	1
Collaborative Arrangement \| Roche and Genentech \| Neuroscience
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of performance obligations under the agreement (in performance obligations) \| performance_obligation	2
Collaborative Arrangement \| Bayer AG
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Research project, fees and milestones payments receivable for an option on a lead series		$ 100,000
Number of projects that may be initiated (in projects) \| project			10
Number of performance obligations under the agreement (in performance obligations) \| performance_obligation		1
Remaining performance obligation revenue		$ 30,000
Collaborative agreement, term (in years)			5 years
Non-refundable upfront payment received		30,000
Research project, fees and milestones payments receivable for an option on a development candidate		$ 120,000

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Apr. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted in period, weighted average grant date fair value (in dollars per share)	$ 5.32	$ 7.42
Unvested stock options, unamortized stock-based compensation cost	$ 37.1
Unvested stock options, unamortized stock-based compensation cost, weighted average period recognition (in years)	3 years
Employee stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, vesting period (in years)	4 years
Stock options, expiration period (in years)	10 years
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, vesting period (in years)	4 years
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested stock options, unamortized stock-based compensation cost, weighted average period recognition (in years)	3 years
Fair market value of vested shares	$ 5.2
Unrecognized compensation cost	$ 59.8
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)	20,652,818

Stock-Based Compensation - Schedule of Stock-based Compensation Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based payment arrangement, expense	$ 8,272	$ 5,344
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based payment arrangement, expense	1,011	348
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based payment arrangement, expense	2,683	1,635
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based payment arrangement, expense	$ 4,578	$ 3,361

Stock-Based Compensation - Schedule of Share-based Payment Arrangement, Option, Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options, outstanding, number at beginning of period (in shares)	16,154,924
Options, granted in period (in shares)	2,757,614
Options, cancelled in period (in shares)	(671,116)
Options, exercised in period (in shares)	(582,395)
Options, outstanding, number at end of period (in shares)	17,659,027	16,154,924
Options, exercisable, number (in shares)	9,233,673
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)	$ 5.10
Options, granted in period, weighted average exercise price (in dollars per share)	8.55
Options, cancelled in period, weighted average exercise price (in dollars per share)	7.41
Options, exercised in period, weighted average exercise price (in dollars per share)	2.03
Options, outstanding, weighted average exercise price at end of period (in dollars per share)	5.65	$ 5.10
Options, exercisable, weighted average exercise price (in dollars per share)	$ 4.02
Options, outstanding, weighted average remaining contractual life	7 years 7 months 6 days	7 years 6 months
Options, exercisable, weighted average remaining contractual life	6 years 7 months 6 days
Options, outstanding, intrinsic value	$ 50,807	$ 67,997
Options, exercised in period, intrinsic value	3,527
Options, exercisable, intrinsic value	$ 37,544

Stock-Based Compensation - Schedule of Share-based Payment Award, Stock Options, Valuation Assumption (Details) - Stock based compensation	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
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
Expected volatility	64.00%	63.00%
Expected dividend yield	0.00%	0.00%
Risk-free interest rate	3.50%	1.70%

Stock-Based Compensation - Schedule of RSU Activity (Details) - Restricted stock	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Stock units
Beginning balance, outstanding (in shares) \| shares	6,894,525
Granted (in shares) \| shares	1,916,806
Vested (in shares) \| shares	(484,444)
Forfeited (in shares) \| shares	(303,686)
Ending balance, outstanding (in shares) \| shares	8,023,201
Weighted-average grant date fair value
Beginning balance, outstanding Weighted average grant date fair value (in dollars per share) \| $ / shares	$ 8.17
Granted (in dollars per share) \| $ / shares	9.05
Vested (in dollars per share) \| $ / shares	8.58
Forfeited (in dollars per share) \| $ / shares	8.31
Ending balance, outstanding Weighted average grant date fair value (in dollars per share) \| $ / shares	$ 8.19

Income Taxes (Details) - USD ($)	3 Months Ended
Income Taxes (Details) - USD ($)	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 0	$ 0

- Definition

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

+ References + Details

Net Loss Per Share - Schedule of Basic and Diluted Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Denominator:
Weighted average common shares outstanding, basic (in shares)	191,618,238	170,690,392
Weighted average common shares outstanding, diluted (in shares)	191,618,238	170,690,392
Net loss per share, basic (in dollars per shares)	$ (0.34)	$ (0.33)
Net loss per share, diluted (in dollars per shares)	$ (0.34)	$ (0.33)
Class A
Numerator:
Undistributed earnings, basic	$ (62,679)	$ (53,022)
Undistributed earnings, diluted	$ (62,679)	$ (53,022)
Denominator:
Weighted average common shares outstanding, basic (in shares)	183,851,596	161,674,169
Weighted average common shares outstanding, diluted (in shares)	183,851,596	161,674,169
Net loss per share, basic (in dollars per shares)	$ (0.34)	$ (0.33)
Net loss per share, diluted (in dollars per shares)	$ (0.34)	$ (0.33)
Class B
Numerator:
Undistributed earnings, basic	$ (2,648)	$ (2,957)
Undistributed earnings, diluted	$ (2,648)	$ (2,957)
Denominator:
Weighted average common shares outstanding, basic (in shares)	7,766,642	9,016,223
Weighted average common shares outstanding, diluted (in shares)	7,766,642	9,016,223
Net loss per share, basic (in dollars per shares)	$ (0.34)	$ (0.33)
Net loss per share, diluted (in dollars per shares)	$ (0.34)	$ (0.33)

Net Loss Per Share - Schedule of Antidilutive Securities Excluded from Computation of Net Loss Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Stock based compensation
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share, amount (in shares)	8,534,876	12,089,621

Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Restricted cash	$ 9,231	$ 9,200
Total assets	417,942	413,813
Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Money market funds	408,711	404,613
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Restricted cash	9,231	9,200
Total assets	417,942	413,813
Level 1 \| Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Money market funds	408,711	404,613
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Restricted cash	0	0
Total assets	0	0
Level 2 \| Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Money market funds	0	0
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Restricted cash	0	0
Total assets	0	0
Level 3 \| Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Money market funds	$ 0	$ 0

Fair Value Measurements - Schedule of Fair Value Disclosure of Asset and Liability Not Measured at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Book values
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total liabilities	$ 1,840	$ 633
Book values \| Notes Payable
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Current portion of notes payable	661	97
Notes payable, net of current portion	1,179	536
Fair values
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total liabilities	1,840	633
Fair values \| Notes Payable
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Current portion of notes payable	661	97
Notes payable, net of current portion	$ 1,179	$ 536

Subsequent Events (Details) - Class A - Subsequent event	May 08, 2023 $ / shares shares
Cyclica Inc
Subsequent Event [Line Items]
Business acquisition, equity interest issued or issuable, number of shares (in shares)	6,900,000
Reference price (in dollars per share) \| $ / shares	$ 5.78
Weighted average share price reference period	30 days
Valence Discovery Inc
Subsequent Event [Line Items]
Business acquisition, equity interest issued or issuable, number of shares (in shares)	8,200,000
Exercisable shares for outstanding options assumed (in dollars per share)	1