View Filing Data

$ 9,141

$ 25,900

$ 36,726

$ 206,738

Beginning Balance at Sep. 30, 2017

2,817,723

3,315,645

2,491,483

9,761,606

$ (133,358)

$ 6,228

$ 33

$ (139,619)

Beginning Balance , shares at Sep. 30, 2017

3,178,819

123

Repurchases of early exercised common stock options , shares

54,352

(9,639)

1,875

(51,434)

^[1]

(51,434)

(182,759)

8,226

(191,053)

Beginning Balance at Mar. 31, 2018

3,223,532

$ 9,141

$ 25,900

$ 36,726

$ 186,828

Beginning Balance , shares at Mar. 31, 2018

2,817,723

3,315,645

2,491,483

8,820,189

Issuance of Series D redeemable convertible preferred stock, net of financing costs

$ 19,910

Issuance of Series D redeemable convertible preferred stock, net of financing costs, Share

941,417

$ 9,141

$ 25,900

$ 36,726

$ 206,738

Beginning Balance at Mar. 31, 2018

2,817,723

3,315,645

2,491,483

9,761,606

(165,721)

7,654

(173,429)

Beginning Balance , shares at Mar. 31, 2018

3,230,818

(31)

Repurchases of early exercised common stock options , shares

1,260

(8,546)

603

(17,624)

(182,759)

8,226

(191,053)

Beginning Balance at Sep. 30, 2018

3,223,532

290,483

$ 9,141

$ 25,900

$ 36,726

$ 218,716

Beginning Balance , shares at Sep. 30, 2018

2,817,723

3,315,645

2,491,483

10,326,454

Conversion of redeemable convertible preferred stock to common stock

$ (9,141)

$ (25,900)

$ (36,726)

$ (218,716)

Conversion of redeemable convertible preferred stock to common stock, Share

(2,817,723)

(3,315,645)

(2,491,483)

(10,326,454)

Beginning Balance at Sep. 30, 2018

(201,422)

9,346

(210,855)

Beginning Balance , shares at Sep. 30, 2018

3,206,048

Issuance of common stock in public offering

153,852

Issuance of common stock in public offering, shares

10,062,500

Vesting of restricted stock units

$ 0

Vesting of restricted stock units, shares

3,459

$ 1,131

1,131

Conversion of redeemable convertible preferred stock warrant liability to equity

191,599

$ 631

631

Conversion of redeemable convertible preferred stock warrant liability to equity , shares

Conversion of redeemable convertible preferred stock to common stock

290,462

$ 0

290,462

Conversion of redeemable convertible preferred stock to common stock , shares

18,951,305

Repurchases of early exercised common stock options , shares

(442)

Net exercise of stock warrants

7,807

$ 0

Net exercise of stock warrants , shares

57,122

Ending Balance at Jun. 30, 2019

(76,488)

176,003

463,229

117

(287,343)

32,471,591

Beginning Balance at Mar. 31, 2019

115,480

$ 0

375,043

(136)

(259,427)

Beginning Balance , shares at Mar. 31, 2019

28,024,052

Issuance of common stock in public offering

84,255

Issuance of common stock in public offering, shares

4,312,500

Vesting of restricted stock units

$ 0

Vesting of restricted stock units, shares

3,459

899

131,580

3,032

253

Ending Balance at Jun. 30, 2019

(27,916)

$ 176,003

$ 463,229

$ 117

$ (287,343)

Cash flows from operating activities

32,471,591

[1]	Adjusted to reflect the retrospective adoption of Accounting Standards Update (ASU) 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash.

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Net of underwriting discounts, commissions and offering expenses	$ 6,307		$ 17,210
Series D Redeemable Convertible Preferred Stock [Member]
Issuance of redeemable convertible preferred stock, net of financing cost		$ 89		$ 318

Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands

9 Months Ended

Jun. 30, 2019

Jun. 30, 2018

Adjustments to reconcile net loss to net cash used in operating activities

$ (76,488)

$ (51,434)

^[1]

Depreciation and amortization

4,622

4,398

^[1]

Loss on disposal of property and equipment

202

^[1]

Stock-based compensation

7,807

1,875

^[1]

Discount accretion on investment securities

(968)

Non-cash interest expense

182

150

^[1]

Change in fair value of redeemable convertible preferred stock warrant liability

^[1]

Amortization of debt discount

219

230

^[1]

Changes in assets and liabilities:

Accounts receivable, net

(6,108)

(1,943)

^[1]

Inventories

532

(2,426)

^[1]

Prepaid expenses and other current assets

(122)

(796)

^[1]

Other non-current assets

(442)

(1,452)

^[1]

Accounts payable

(96)

1,539

^[1]

Accrued expenses

1,961

518

^[1]

Accrued payroll

4,475

(90)

^[1]

Other liabilities

(355)

(158)

^[1]

Net cash used in operating activities

(64,579)

(49,468)

^[1]

Cash flows from investing activities

Purchases of property and equipment

(10,864)

(2,641)

^[1]

Proceeds from sale of property and equipment

^[1]

Purchases of investments

(137,264)

(3,374)

^[1]

Proceeds from maturity of investments

44,500

32,900

^[1]

Net cash provided by (used in) investing activities

(103,623)

26,902

^[1]

Cash flows from financing activities

Proceeds from issuance of common stock and exercise of stock options

1,109

291

^[1]

Proceeds from public offerings, net of underwriting discounts, commissions and offering expenses

156,208

Proceeds from issuance of Series D redeemable convertible preferred stock, net of issuance costs

^[1]

83,873

Payments of deferred offering costs

^[1]

(1,925)

Principal repayment on long term debt

(1,667)

Net cash provided by financing activities

155,650

82,239

^[1]

Net increase (decrease) in cash, cash equivalents, and restricted cash

(12,552)

59,673

^[1]

Cash, cash equivalents, and restricted cash at beginning of period

81,537

31,429

^[1]

Cash, cash equivalents, and restricted cash at end of period

68,985

91,102

^[1]

Supplemental disclosure of cash flow information

Interest paid

605

587

^[1]

Income taxes paid, net of refunds

221

^[1]

Non-cash investing and financing activities

Property and equipment additions included in accounts payable and accrued expenses

1,273

Deferred offering costs included in accounts payable and accrued expenses

^[1]

$ 516

Conversion of redeemable convertible preferred stock warrant liability to equity

631

Conversion of redeemable convertible preferred stock to common stock

$ 290,462

[1]	Adjusted to reflect the retrospective adoption of Accounting Standards Update (ASU) 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash.

The Company

9 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The Company

1. The Company

Twist Bioscience Corporation (the Company) was incorporated in the state of Delaware on February 4, 2013. The Company is a synthetic biology company that has developed a disruptive DNA synthesis platform. The Company’s fiscal year ends on September 30.

The Company has generated net losses in all periods since its inception. As of June 30, 2019, the Company had an accumulated deficit of $287.3 million and has not generated positive cash flows from operations since inception. Losses are expected to continue as the Company continues to invest in product development, manufacturing, and sales and marketing.

The Company has raised multiple rounds of debt and equity financing since its inception. In October 2018, the Company completed an initial public offering (IPO) of its common stock which raised proceeds of $69.6 million, after deducting underwriting discounts, commissions and offering expenses. In May 2019, the Company completed an underwritten public offering of its common stock with proceeds of $84.3 million, after deducting underwriting discounts and commissions and offering expenses. Management believes that these proceeds combined with existing cash and short-term investment balances on hand will be sufficient to fund operations for at least one year from the issuance of these unaudited condensed consolidated financial statements. However, there can be no assurance that additional financing will not be required or that the Company will be successful in raising additional capital on terms which are acceptable to the Company.

If the Company requires but is unable to obtain additional funding, the Company could be forced to delay, reduce or eliminate some or all of its research and development programs, product portfolio expansion or commercialization efforts, which could adversely affect its business prospects, or the Company may be unable to continue operations.

Summary of significant accounting policies

9 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Summary of significant accounting policies

2. Summary of significant accounting policies

Basis of presentation and use of estimates

The accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information. Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes included in the Annual Report on Form 10-K for the fiscal year ended September 30, 2018 (the Annual Report on Form 10-K) filed with the Securities and Exchange Commission on December 20, 2018. The condensed consolidated financial statements are unaudited and have been prepared on a basis consistent with that used to prepare the audited annual consolidated financial statements and include, in the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair statement of the condensed consolidated financial statements. The condensed consolidated balance sheet at September 30, 2018 is derived from audited consolidated financial statements but does not include all disclosures required by GAAP. The operating results for the three and nine months ended June 30, 2019 are not necessarily indicative of the results expected for the full year ending September 30, 2019.

The presentation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Company’s unaudited condensed consolidated financial statements include its wholly-owned subsidiaries. All intercompany balances and accounts are eliminated in consolidation.

Significant accounting policies

There have been no material changes in the accounting policies from those disclosed in the audited consolidated financial statements and the related notes included in the Annual Report on Form 10-K.

Reverse stock split

In October 2018, the Company’s stockholders approved a one-for-0.101 reverse stock split of its common and redeemable convertible preferred stock which was effected on October 16, 2018. The par value of the common stock and redeemable convertible preferred stock were not adjusted as a result of the reverse stock split. Accordingly, all share and per share amounts for all periods presented in the consolidated financial statements and notes thereto have been adjusted retrospectively to reflect this reverse stock split.

Deferred offering costs

Deferred offering costs, which consist of direct incremental legal, consulting, banking and accounting fees relating to the Company’s public offerings, are capitalized and will be offset against proceeds from the public offerings within stockholders’ equity. As of September 30, 2018, there was $3.7 million of deferred offering costs within other non-current assets on the condensed consolidated balance sheets. During the nine months ended June 30, 2019, an additional $2.4 million in offering costs were incurred. In connection with the public offerings, as of June 30, 2019, all offering costs were charged against the proceeds from the offerings.

Recent accounting pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09,

Revenue from Contracts with Customers (Topic 606)

, which provides accounting guidance for all revenue arising from contracts with customers, and supersedes most current revenue recognition guidance. The core principle of the new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented, and the cumulative effect of applying the standard would be recognized at the earliest period shown, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. The Company adopted the new revenue standard, on October 1, 2017, using the full retrospective method.

In February 2016, the FASB issued new lease accounting guidance in ASU 2016-02,

Leases

. Under the new guidance, lessees will be required to recognize for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The new lease guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13,

Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

. The new standard requires entities to use the new “expected credit loss” impairment model for most financial assets measured at amortized cost, including trade and other receivables and held-to-maturity debt securities, and modifies the impairment model for available-for-sale debt securities. The standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early application is permitted. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15,

Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments

, which was intended to reduce diversity in practice in how certain cash receipts and payments are presented and classified in the statement of cash flows. The standard provides guidance in a number of situations including, among others, settlement of zero-coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, and distributions received from equity method investees. The ASU also provides guidance for classifying cash receipts and payments that have aspects of more than one class of cash flows. The Company adopted this standard effective October 1, 2018. The adoption of ASU 2016-15 did not have an impact on the Company’s condensed consolidated financial statements for either period presented.

In November 2016, the FASB issued ASU 2016-18,

Statement of Cash Flows (Topic 230): Restricted Cash

. This ASU applies to all entities that have restricted cash and are required to present a statement of cash flows. The ASU requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash. As a result, amounts generally described as restricted cash should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Further, a reconciliation between the balance sheet and statement of cash flows is required when the balance sheet includes more than one line item for cash, cash equivalents, and restricted cash. Therefore, transfers between these balances should no longer be presented as a cash flow activity. The Company adopted this standard effective October 1, 2018, utilizing the retrospective transition method to each period presented. The following table provides a reconciliation of the Company’s cash and cash equivalents, current portion of restricted cash and non-current portion of restricted cash reported within the condensed consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash shown in the Company’s condensed consolidated statements of cash flows for the periods presented:


(in thousands)	September 30, 2018		June 30, 2019
Cash and cash equivalents	$	80,757	$	68,212
Restricted cash, non-current		579		579
Restricted cash, current (within prepaid expenses and other current assets)		201		194

Total cash, cash equivalents and restricted cash	$	81,537	$	68,985

Amounts included in restricted cash primarily related to security deposits and a letter of credit with a financial institution, both in connection with office space lease agreements.

In January 2017, the FASB issued ASU 2017-01,

Business Combinations (Topic 805)

Clarifying the Definition of a Business

, clarifying the definition of a business. The ASU affects all companies and other reporting organizations that must determine whether they have acquired or sold a business. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The Company adopted this standard effective October 1, 2018. The Company will apply the provisions of this ASU in evaluating the definition of a business for any prospective transaction from October 1, 2018.

In January 2017, the FASB issued ASU 2017-04,

Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.

This ASU simplifies the subsequent measurement of goodwill. The ASU eliminates step 2 from the goodwill impairment test, including for reporting units with a zero or negative carrying amount that fail a qualitative test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. This ASU should be applied on a prospective basis. This ASU is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company has not yet determined whether it will early adopt this ASU.

In May 2017, the FASB issued ASU 2017-09,

Compensation

—

Stock Compensation (Topic 718): Scope of Modification Accounting

, which clarifies when to account for a change to the terms or conditions of a stock-based payment award as a modification. Under ASU 2017-09, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. This standard is effective for all entities for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company adopted this standard effective October 1, 2018. The adoption of ASU 2017-09 did not have an impact on the Company’s condensed consolidated financial statements for either period presented.

In August 2018, the FASB issued ASU 2018-13,

Fair Value Measurement (Subtopic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement

, which modifies the disclosure requirements on fair value measurements. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. ASU 2018-13 will be effective for the Company for the quarter ending December 31, 2020, with early adoption permitted. The Company is currently assessing the impact of adoption on its disclosures.

Fair value measurement

9 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Fair value measurement

3. Fair value measurement

The Company assesses the fair value of financial instruments based on the provisions of ASC 820, Fair Value Measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1—Quoted prices in active markets for identical assets or liabilities.

Level 2—Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The Company short-term investments primarily utilize broker quotes in a non-active market for valuation of its short-term investments.

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value.

The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2018 and June 30, 2019 and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value.


	September 30, 2018
(in thousands)	Level 1		Level 2		Level 3		Fair value
Assets
Cash	$	46,823	$	—	$	—	$	46,823
Money market funds		33,934		—		—		33,934

Totals	$	80,757	$	—	$	—	$	80,757

Liabilities
Redeemable convertible preferred stock warrant liability	$	—	$	—	$	631	$	631


	June 30, 2019
(in thousands)	Level 1		Level 2		Level 3		Fair value
Assets
Cash	$	13,739	$	—	$	—	$	13,739
Money market funds		51,304		—		—		51,304
Corporate bonds		—		7,529		—		7,529
Commercial paper		—		21,904		—		21,904
U.S. government treasury bills		67,311		—		—		67,311

Totals	$	132,354	$	29,433	$	—	$	161,787

As of September 30, 2018 and June 30, 2019, gross unrealized gains and unrealized losses for cash equivalents and short-term investments were not material, and the contractual maturities of all marketable securities were less than one year.

Redeemable convertible preferred stock warrants

The following tables provide a reconciliation of the beginning and ending balances of the Level 3 instruments during the nine months ended June 30, 2018 and 2019:


	June 30, 2018
(in thousands)	Series A			Series B			Series C			Series D			Total
Fair value as of September 30, 2017	$	331		$	110		$	152		$	51		$	644
Change in fair value recorded in other income (expense), net		43			16			2			5			66

Fair value as of June 30, 2018	$	374		$	126		$	154		$	56		$	710


	June 30, 2019
(in thousands)	Series A			Series B			Series C			Series D			Total
Fair value as of September 30, 2018	$	365		$	94		$	130		$	42		$	631
Conversion of redeemable convertible preferred stock warrants to common stock warrants		(365	)		(94	)		(130	)		(42	)		(631	)

Fair value as of June 30, 2019	$	—		$	—		$	—		$	—		$	—

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.

Goodwill and Intangible Assets Disclosure [Abstract]

Inventories

9 Months Ended

Jun. 30, 2019

Inventory Disclosure [Abstract]

Inventories

4. Inventories

Inventory amounts consist of the following:


(in thousands)	September 30, 2018		June 30, 2019
Raw Materials	$	2,988	$	2,995
Work-in-process		2,273		1,373
Finished Goods		767		1,128

	$	6,028	$	5,496

Goodwill and intangible assets

9 Months Ended

Jun. 30, 2019

Goodwill and intangible assets

5. Goodwill and intangible assets

There were no changes to the carrying value of goodwill as of September 30, 2018 and June 30, 2019. Total amortization expense related to intangible assets was less than $0.1 million for the three months ended June 30, 2018 and 2019, and $0.2 million for the nine months ended June 30, 2018 and 2019.

The intangible assets balances are presented below:


	September 30, 2018
(in thousands, except for years)	Useful life in years		Gross carrying amount		Accumulated amortization			Net book value
Developed Technology		6	$	1,220	$	(508	)	$	712
Tradenames & Trademarks		2		20		(20	)		—

Total indefinite-lived intangible assets			$	1,240	$	(528	)	$	712


	June 30, 2019
(in thousands, except for years)	Useful life in years		Gross carrying amount		Accumulated amortization			Net book value
Developed Technology		6	$	1,220	$	(661	)	$	559
Tradenames & Trademarks		2		20		(20	)		—

Total indefinite-lived intangible assets			$	1,240	$	(681	)	$	559

Commitments and contingencies

9 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and contingencies

6. Commitments and contingencies

Litigation

In February 2016, a complaint was filed in the Superior Court of the State of California (County of Santa Clara), dated February 3, 2016, on behalf of Agilent Technologies, Inc. (Agilent), against the Company and its CEO. Agilent’s complaint alleges three claims (1) alleged breach of contract, related to the use of confidential information and alleged breach of non-solicitation obligations against the CEO; (2) alleged breach of a duty of loyalty against the CEO; and (3) alleged misappropriation of trade secrets under the California Uniform Trade Secrets Act (CUTSA) against all defendants. On December 7, 2018, the Court granted Agilent’s motion to amend its complaint, permitting Agilent to file its Second Amended Complaint. The Second Amended Complaint, filed December 13, 2018, adds amended allegations against the Company and the CEO, and also new claims for breach of contract and trade secret misappropriation against two individuals: a current Company employee and a former Company employee. The Court also set the trial to begin on February 24, 2020.

On January 29, 2019, the Company and its CEO filed a demurrer and motion to strike Agilent’s second amended complaint, challenging each of Agilent’s claims. Also, on January 29, 2019, the Company and its CEO filed a cross-complaint, asserting six counterclaims against Agilent and Does 1-10 for (1) declaration of no trade secret misappropriation; (2) declaration of no breach of contract; (3) declaration of no breach of duty of loyalty; (4) defamation, defamation per se, libel, libel per se, slander, and slander per se; (5) intentional interference with prospective economic advantage; (6) unlawful and unfair competition. The Company and its CEO also filed their answer and affirmative defenses to Agilent’s second amended complaint.

On March 4, 2019, Agilent filed a demurrer and motion to strike challenging all six claims alleged in the Company and its CEO’s cross-complaint filed on January 29, 2019. The Company and the CEO are opposing Agilent’s motions.

On May 10, 2019, the Court issued its ruling denying Agilent’s demurrer and motion to strike the Company’s cross-complaint. In addition, the Court issued its ruling denying the Company’s demurrer and motion to strike certain allegations associated with Agilent’s breach of contract claim, but granted the Company’s motion to strike breach of contract allegations relating to the non-solicitation provision in Agilent’s employment contract.

On May 16, 2019, Agilent filed their notice of appeal of the Court’s May 10, 2019 ruling denying Agilent’s motion to strike. On May 22, 2019, Agilent sought ex parte relief from the Court to stay all proceedings related to both the Company’s cross-claims and Agilent’s affirmative claims. The Court stayed proceedings relating to the Company’s cross-claims, which was not opposed by the Company, but denied Agilent’s request for a discovery stay related to Agilent’s affirmative claims. Agilent then filed a noticed motion seeking to stay proceedings related to its affirmative claims on June 14, 2019, and following a hearing on June 28, 2019, the Court denied Agilent’s motion. Agilent may seek to appeal this ruling.

The trial remains set for February 24, 2020. Additionally, the Discovery Referee has set a case schedule with fact discovery closing on October 1, 2019.

The Company believes that Agilent’s complaint is without merit, and intends to continue vigorously defending itself. The Company is currently unable to predict the ultimate outcome of this matter or estimate a reasonably possible loss or range of loss, and no amounts have been accrued in the condensed consolidated financial statements.

Indemnifications

In the ordinary course of business, the Company enters into agreements that may include indemnification provisions. Pursuant to such agreements, the Company may indemnify, hold harmless and defend the indemnified parties for losses suffered or incurred by the indemnified party. Some of the provisions will limit losses to those arising from third-party actions. In some cases, the indemnification will continue after the termination of the agreement. The maximum potential amount of future payments the Company could be required to make under these provisions is not determinable. To date, the Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification provisions. The Company has also entered into indemnification agreements with its directors and officers that may require it to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers to the fullest extent permitted by corporate law. The Company also has directors’ and officers’ insurance.

Related party transactions

9 Months Ended

Jun. 30, 2019

Related party transactions

7. Related party transactions

During the three months ended June 30, 2018 and 2019, the Company purchased raw materials from a related party investor in the amount of $0.7 million and $0.5 million, respectively. During the nine months ended June 30, 2018 and 2019, the Company purchased raw materials from a related party investor in the amount of $1.8 million and $2.6 million, respectively. Payable balances and cash receipts and receivable balances with the related parties were immaterial as of September 30, 2018 and June 30, 2019.

Income taxes

9 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Income taxes

8. Income taxes

In determining quarterly provisions for income taxes, the Company uses the annual estimated effective tax rate applied to the actual year-to-date profit or loss, adjusted for discrete items arising in that quarter. The Company’s annual estimated effective tax rate differs from the U.S. federal statutory rate primarily as a result of state taxes, foreign taxes, and changes in the Company’s valuation allowance against its deferred tax assets. For each of the three and nine months ended June 30, 2018 and 2019, the Company recorded an immaterial provision for income taxes.

Warrants

9 Months Ended

Jun. 30, 2019

Text Block [Abstract]

Warrants

9. Warrants

In connection with its long-term debt agreements, the Company issued warrants for its redeemable convertible preferred stock and common stock as follows:


(in thousands, except share and per share data)	Number of shares underlying warrants		Fair Value
Warrant class/series:	September 30, 2018				Issuance date		Expiration date		Exercise price per share
Series A		36,838	$	365		October 8, 2013		October 8, 2023	$	3.26
Series B		16,221		94		September 2, 2014		September 2, 2024	$	7.84
Series C		18,854		130		December 22, 2015		December 22, 2025	$	14.85
Series D		7,531		42		March 28, 2016		March 28, 2026	$	21.24

Total preferred stock warrants		79,444	$	631

Common stock warrants		64,127	$	486		September 6, 2017		September 6, 2027	$	6.24

(in thousands, except share and per share data)

Number of

underlying

warrants

Warrant class/series:

June 30,

2019

Issuance date

Expiration date

Exercise price

per share

Common stock warrants

16,221

September 2, 2014

September 2, 2024

7.84

Common stock warrants

18,854

December 22, 2015

December 22, 2025

14.85

Common stock warrants

7,531

March 28, 2016

March 28, 2026

21.24

Common stock warrants

32,064

September 6, 2017

September 6, 2027

6.24

Total common stock warrants

74,670

In October 2018, each warrant to purchase redeemable convertible preferred stock was converted to a warrant to purchase common stock immediately prior to the completion of the IPO. In November 2018, a total of 68,901 warrants were net exercised; 36,838 warrants with an exercise price of $3.26 per common share and 32,063 warrants with an exercise price of $6.24 per common share. The transactions were a cashless exercise for a net 57,122 of common shares issued by the Company.

Redeemable convertible preferred stock

9 Months Ended

Jun. 30, 2019

Text Block [Abstract]

Redeemable convertible preferred stock

10. Redeemable convertible preferred stock

In October 2018, each share of Series A, Series B, Series C, and Series D redeemable convertible preferred stock was converted into common stock immediately prior to the completion of the IPO.

Stock-based compensation

9 Months Ended

Jun. 30, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-based compensation

11. Stock-based compensation

2018 Equity Incentive Plan

On September 26, 2018, the board of directors adopted the 2018 Equity Incentive Plan (the 2018 Plan) as a successor to the 2013 Stock Plan (the 2013 Plan). The maximum aggregate number of shares that may be issued under the 2018 Plan is 5,856,505 shares of the Company’s common stock. The number of shares reserved for issuance under the 2018 Plan will be increased automatically on the first day of each fiscal year, following the fiscal year in which the 2018 Plan became effective, by a number equal to the least of 999,900 shares, 4% of the shares of common stock outstanding at that time, or such number of shares determined by the Company’s board of directors. The common shares issuable under the 2018 Plan were registered pursuant to a registration statement on Form S-8 on November 1, 2018.

Any shares subject to outstanding awards under the 2013 Equity Incentive Plan that are canceled or repurchased subsequent to the 2018 Plan’s effective date are returned to the pool of shares reserved for issuance under the 2018 Plan. Awards granted under the 2018 Plan may be nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, and performance units.

2018 Employee Stock Purchase Plan

On September 26, 2018, the board of directors adopted the 2018 Employee Stock Purchase Plan (the 2018 ESPP). A total of 275,225 shares of the Company’s common stock have been reserved for issuance under the 2018 ESPP. The number of shares reserved for issuance under the 2018 ESPP will be increased automatically on the first day of each fiscal year, following the fiscal year in which the 2018 ESPP becomes effective, by a number equal to the least of 249,470 shares, 1% of the shares of common stock outstanding at that time, or such number of shares determined by the Company’s board of directors. Subject to any plan limitations, the 2018 ESPP allows eligible service providers (through qualified and non-qualified offerings) to contribute, normally through payroll deductions, up to 15% of their earnings for the purchase of the Company’s common stock at a discounted price per share. The offering periods are beginning in February and August of each year, except the initial offering period which commenced with the initial public offering in October 2018 and ends on August 20, 2019. The common shares issuable under the 2018 ESPP were registered pursuant to a registration statement on Form S-8 on November 26, 2018.

Unless otherwise determined by the board of directors, the Company’s common stock will be purchased for the accounts of employees participating in the 2018 ESPP at a price per share that is the lesser of 85% of the fair market value of the Company’s common stock on the first trading day of the offering period, which for the initial offering period is the price at which shares of the Company’s common stock were first sold to the public, or 85% of the fair market value of the Company’s common stock on the last trading day of the offering period. During the nine months ended June 30, 2019, activity under the 2018 ESPP was immaterial.

Activity under the equity incentive plans during the nine months ended June 30, 2019 is summarized below:


(in thousands, except share and per share data)	Shares available			Options outstanding			Weighted average exercise price per share		Weighted average remaining contractual term (years)		Aggregate intrinsic value
Outstanding at September 30, 2018		860,287			2,520,485		$	8.22		8.38	$	11,483
Additional shares authorized		2,494,700			—
Stock options granted		(1,618,676	)		1,618,676			25.21
Stock options exercised		—			(191,599	)		5.95
Stock options forfeited		340,899			(340,899	)		15.93
Restricted stock units granted		(500,132	)		—			—
Forfeiture of restricted stock units		24,221			—			—
Early exercised options repurchased		442			—			—

Outstanding at June 30, 2019		1,601,741			3,606,663		$	15.24		8.41	$	50,051

Vested or expected to vest and exercisable at June 30, 2019					3,606,663		$	15.24		8.41	$	50,051

Total stock-based compensation expense recognized was as follows:


	Three months ended June 30,				Nine months ended June 30,
(in thousands)	2018		2019		2018		2019
Cost of revenues	$	100	$	446	$	275	$	1,155
Research and development		109		530		521		1,251
Selling, general and administrative		394		2,056		1,079		5,401

Total stock-based compensation	$	603	$	3,032	$	1,875	$	7,807

As of June 30, 2019, there was $25.5 million of total unrecognized compensation cost related to non-vested stock options under the equity incentive plans that are expected to be recognized over a weighted average period of 3.6 years.

Restricted Stock Units

Restricted stock primarily consists of restricted stock unit awards (RSUs) which have been granted to employees. The value of an RSU award is based on the Company’s stock price on the date of grant. The shares underlying the RSU awards are not issued until the RSUs vest. Upon vesting, each RSU converts into one share of the Company’s common stock.

Activity with respect to the Company’s restricted stock units during the nine months ended June 30, 2019 was as follows:


(in thousands, except share and per share data)	Number of Shares			Weighted average grant date fair value per share		Weighted average remaining contractual term (years)		Aggregate Intrinsic Value
Outstanding at September 30, 2018		—		$	—		—	$	—
Restricted stock units granted		500,132			26.12
Restricted stock units vested		(4,581	)		23.62
Restricted stock units forfeited		(24,221	)		25.67

Outstanding at June 30, 2019		471,330		$	26.17		4.12	$	9,194

Expected to vest at June 30, 2019:		471,330		$	26.17		4.12	$	9,194

As of June 30, 2019, there was $10.8 million of total unrecognized compensation cost related to these issuances that is expected to be recognized over a weighted average period of 4.2 years.

Net loss per share attributable to common stockholders

9 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Net loss per share attributable to common stockholders

12. Net loss per share attributable to common stockholders

The following table sets forth the computation of the Company’s basic and diluted net loss per share attributable to common stockholders:


	Three months ended June 30,						Nine months ended June 30,
(in thousands, except share and per share data)	2018			2019			2018			2019
Numerator:
Net loss attributable to common stockholders	$	(17,624	)	$	(27,916	)	$	(51,434	)	$	(76,488	)

Denominator:
Weighted average shares used in computing net loss per share, basic and diluted		2,849,544			30,290,150			2,719,051			25,789,794

Net loss per share attributable to common stockholders, basic and diluted	$	(6.18	)	$	(0.92	)	$	(18.92	)	$	(2.97	)

The potentially dilutive common shares that were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented are as follows:


	Three and nine months ended June 30,
(in thousands, except share and per share data)	2018		2019
Shares subject to options to purchase common stock		2,424,024		3,606,663
Unvested restricted shares of common stock		146,745		50,921
Unvested restricted stock units of common stock		—		471,330
Unvested shares of common stock issued upon early exercise of stock options		48,917		45,369
Shares subject to employee stock purchase plan		—		143,716
Shares subject to warrants to purchase common stock		64,127		74,670
Shares subject to warrants to purchase redeemable convertible preferred stock		79,444		—
Shares of redeemable convertible preferred stock		18,386,457		—

Total		21,149,714		4,392,669

Geographic, product and industry information

9 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Geographic, product and industry information

13. Geographic, product and industry information

The table below sets forth revenues by geographic region, based on ship-to destinations. Americas consists of Canada, Mexico, and South America; EMEA consists of Europe, the Middle East, and Africa; and APAC consists of Japan, China, South Korea, Singapore, Malaysia, and Australia.


	Three months ended June 30,				Nine months ended June 30,
(in thousands)	2018		2019		2018		2019
United States	$	4,587	$	8,687	$	12,011	$	26,567
EMEA		1,624		3,508		4,116		9,257
APAC		268		878		740		2,017
Americas		62		527		153		807

Total	$	6,541	$	13,600	$	17,020	$	38,648

The table below sets forth revenues by product.


	Three months ended June 30,				Nine months ended June 30,
(in thousands)	2018		2019		2018		2019
Synthetic genes	$	4,237	$	6,242	$	11,903	$	18,850
Oligo pools		810		1,214		2,146		3,280
DNA libraries		523		578		1,208		1,654
NGS tools		971		5,566		1,763		14,864

Total	$	6,541	$	13,600	$	17,020	$	38,648

The table below sets forth revenues by industry.


	Three months ended June 30,				Nine months ended June 30,
(in thousands)	2018		2019		2018		2019
Industrial chemicals	$	3,140	$	5,319	$	9,474	$	16,051
Academic research		1,971		4,497		4,223		9,206
Healthcare		1,185		3,291		2,901		12,412
Agricultural		245		493		422		979

Total	$	6,541	$	13,600	$	17,020	$	38,648

Long-lived assets located in the United States were $18.8 million as of June 30, 2019. Long-lived assets located outside of the United States were $1.0 million as of June 30, 2019.

Summary of significant accounting policies (Policies)

9 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Basis of presentation and use of estimates

Significant accounting policies

There have been no material changes in the accounting policies from those disclosed in the audited consolidated financial statements and the related notes included in the Annual Report on Form 10-K.

Reverse stock split

Deferred offering costs

Recent accounting pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09,

Revenue from Contracts with Customers (Topic 606)

In February 2016, the FASB issued new lease accounting guidance in ASU 2016-02,

Leases

In June 2016, the FASB issued ASU 2016-13,

Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

In August 2016, the FASB issued ASU 2016-15,

Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments

In November 2016, the FASB issued ASU 2016-18,

Statement of Cash Flows (Topic 230): Restricted Cash


(in thousands)	September 30, 2018		June 30, 2019
Cash and cash equivalents	$	80,757	$	68,212
Restricted cash, non-current		579		579
Restricted cash, current (within prepaid expenses and other current assets)		201		194

Total cash, cash equivalents and restricted cash	$	81,537	$	68,985

Amounts included in restricted cash primarily related to security deposits and a letter of credit with a financial institution, both in connection with office space lease agreements.

In January 2017, the FASB issued ASU 2017-01,

Business Combinations (Topic 805)

Clarifying the Definition of a Business

In January 2017, the FASB issued ASU 2017-04,

Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.

In May 2017, the FASB issued ASU 2017-09,

Compensation

—

Stock Compensation (Topic 718): Scope of Modification Accounting

In August 2018, the FASB issued ASU 2018-13,

Fair Value Measurement (Subtopic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement

Summary of significant accounting policies (Tables)

9 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Summary of Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of the Company’s cash and cash equivalents, current portion of restricted cash and non-current portion of restricted cash reported within the condensed consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash shown in the Company’s condensed consolidated statements of cash flows for the periods presented:


(in thousands)	September 30, 2018		June 30, 2019
Cash and cash equivalents	$	80,757	$	68,212
Restricted cash, non-current		579		579
Restricted cash, current (within prepaid expenses and other current assets)		201		194

Total cash, cash equivalents and restricted cash	$	81,537	$	68,985

Fair value measurement (Tables)

9 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Summary of Company's Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis


	September 30, 2018
(in thousands)	Level 1		Level 2		Level 3		Fair value
Assets
Cash	$	46,823	$	—	$	—	$	46,823
Money market funds		33,934		—		—		33,934

Totals	$	80,757	$	—	$	—	$	80,757

Liabilities
Redeemable convertible preferred stock warrant liability	$	—	$	—	$	631	$	631


	June 30, 2019
(in thousands)	Level 1		Level 2		Level 3		Fair value
Assets
Cash	$	13,739	$	—	$	—	$	13,739
Money market funds		51,304		—		—		51,304
Corporate bonds		—		7,529		—		7,529
Commercial paper		—		21,904		—		21,904
U.S. government treasury bills		67,311		—		—		67,311

Totals	$	132,354	$	29,433	$	—	$	161,787

Summary of Reconciliation of Beginning and Ending Balances of the Level 3 Instruments

The following tables provide a reconciliation of the beginning and ending balances of the Level 3 instruments during the nine months ended June 30, 2018 and 2019:


	June 30, 2018
(in thousands)	Series A			Series B			Series C			Series D			Total
Fair value as of September 30, 2017	$	331		$	110		$	152		$	51		$	644
Change in fair value recorded in other income (expense), net		43			16			2			5			66

Fair value as of June 30, 2018	$	374		$	126		$	154		$	56		$	710


	June 30, 2019
(in thousands)	Series A			Series B			Series C			Series D			Total
Fair value as of September 30, 2018	$	365		$	94		$	130		$	42		$	631
Conversion of redeemable convertible preferred stock warrants to common stock warrants		(365	)		(94	)		(130	)		(42	)		(631	)

Fair value as of June 30, 2019	$	—		$	—		$	—		$	—		$	—

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

Goodwill and Intangible Assets Disclosure [Abstract]

Inventories (Tables)

9 Months Ended

Jun. 30, 2019

Inventory Disclosure [Abstract]

Summary of Inventory

Inventory amounts consist of the following:


(in thousands)	September 30, 2018		June 30, 2019
Raw Materials	$	2,988	$	2,995
Work-in-process		2,273		1,373
Finished Goods		767		1,128

	$	6,028	$	5,496

Goodwill and intangible assets (Tables)

9 Months Ended

Jun. 30, 2019

Summary of Intangible Assets Balances

The intangible assets balances are presented below:


	September 30, 2018
(in thousands, except for years)	Useful life in years		Gross carrying amount		Accumulated amortization			Net book value
Developed Technology		6	$	1,220	$	(508	)	$	712
Tradenames & Trademarks		2		20		(20	)		—

Total indefinite-lived intangible assets			$	1,240	$	(528	)	$	712


	June 30, 2019
(in thousands, except for years)	Useful life in years		Gross carrying amount		Accumulated amortization			Net book value
Developed Technology		6	$	1,220	$	(661	)	$	559
Tradenames & Trademarks		2		20		(20	)		—

Total indefinite-lived intangible assets			$	1,240	$	(681	)	$	559

Warrants (Tables)

9 Months Ended

Jun. 30, 2019

Text Block [Abstract]

Summary of Issued Warrants for Its Redeemable Convertible Preferred Stock and Common Stock

In connection with its long-term debt agreements, the Company issued warrants for its redeemable convertible preferred stock and common stock as follows:


(in thousands, except share and per share data)	Number of shares underlying warrants		Fair Value
Warrant class/series:	September 30, 2018				Issuance date		Expiration date		Exercise price per share
Series A		36,838	$	365		October 8, 2013		October 8, 2023	$	3.26
Series B		16,221		94		September 2, 2014		September 2, 2024	$	7.84
Series C		18,854		130		December 22, 2015		December 22, 2025	$	14.85
Series D		7,531		42		March 28, 2016		March 28, 2026	$	21.24

Total preferred stock warrants		79,444	$	631

Common stock warrants		64,127	$	486		September 6, 2017		September 6, 2027	$	6.24

(in thousands, except share and per share data)

Number of

underlying

warrants

Warrant class/series:

June 30,

2019

Issuance date

Expiration date

Exercise price

per share

Common stock warrants

16,221

September 2, 2014

September 2, 2024

7.84

Common stock warrants

18,854

December 22, 2015

December 22, 2025

14.85

Common stock warrants

7,531

March 28, 2016

March 28, 2026

21.24

Common stock warrants

32,064

September 6, 2017

September 6, 2027

6.24

Total common stock warrants

74,670

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-based compensation (Tables)

9 Months Ended

Jun. 30, 2019

Activity Under The Equity Incentive Plans

Activity under the equity incentive plans during the nine months ended June 30, 2019 is summarized below:


(in thousands, except share and per share data)	Shares available			Options outstanding			Weighted average exercise price per share		Weighted average remaining contractual term (years)		Aggregate intrinsic value
Outstanding at September 30, 2018		860,287			2,520,485		$	8.22		8.38	$	11,483
Additional shares authorized		2,494,700			—
Stock options granted		(1,618,676	)		1,618,676			25.21
Stock options exercised		—			(191,599	)		5.95
Stock options forfeited		340,899			(340,899	)		15.93
Restricted stock units granted		(500,132	)		—			—
Forfeiture of restricted stock units		24,221			—			—
Early exercised options repurchased		442			—			—

Outstanding at June 30, 2019		1,601,741			3,606,663		$	15.24		8.41	$	50,051

Vested or expected to vest and exercisable at June 30, 2019					3,606,663		$	15.24		8.41	$	50,051

Total Stock-based Compensation Expense

Total stock-based compensation expense recognized was as follows:


	Three months ended June 30,				Nine months ended June 30,
(in thousands)	2018		2019		2018		2019
Cost of revenues	$	100	$	446	$	275	$	1,155
Research and development		109		530		521		1,251
Selling, general and administrative		394		2,056		1,079		5,401

Total stock-based compensation	$	603	$	3,032	$	1,875	$	7,807

Schedule of Nonvested Restricted Stock Units Activity

Activity with respect to the Company’s restricted stock units during the nine months ended June 30, 2019 was as follows:


(in thousands, except share and per share data)	Number of Shares			Weighted average grant date fair value per share		Weighted average remaining contractual term (years)		Aggregate Intrinsic Value
Outstanding at September 30, 2018		—		$	—		—	$	—
Restricted stock units granted		500,132			26.12
Restricted stock units vested		(4,581	)		23.62
Restricted stock units forfeited		(24,221	)		25.67

Outstanding at June 30, 2019		471,330		$	26.17		4.12	$	9,194

Expected to vest at June 30, 2019:		471,330		$	26.17		4.12	$	9,194

Net loss per share attributable to common stockholders (Tables)

9 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Computation of the Company's Basic and Diluted Net Loss Per Share Attributable to Common Stockholders

The following table sets forth the computation of the Company’s basic and diluted net loss per share attributable to common stockholders:


	Three months ended June 30,						Nine months ended June 30,
(in thousands, except share and per share data)	2018			2019			2018			2019
Numerator:
Net loss attributable to common stockholders	$	(17,624	)	$	(27,916	)	$	(51,434	)	$	(76,488	)

Denominator:
Weighted average shares used in computing net loss per share, basic and diluted		2,849,544			30,290,150			2,719,051			25,789,794

Net loss per share attributable to common stockholders, basic and diluted	$	(6.18	)	$	(0.92	)	$	(18.92	)	$	(2.97	)

Summary of Calculation of Diluted Net Loss Per Share


	Three and nine months ended June 30,
(in thousands, except share and per share data)	2018		2019
Shares subject to options to purchase common stock		2,424,024		3,606,663
Unvested restricted shares of common stock		146,745		50,921
Unvested restricted stock units of common stock		—		471,330
Unvested shares of common stock issued upon early exercise of stock options		48,917		45,369
Shares subject to employee stock purchase plan		—		143,716
Shares subject to warrants to purchase common stock		64,127		74,670
Shares subject to warrants to purchase redeemable convertible preferred stock		79,444		—
Shares of redeemable convertible preferred stock		18,386,457		—

Total		21,149,714		4,392,669

Geographic, product and industry information (Tables)

9 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Summary of Revenue by Geographic Region


	Three months ended June 30,				Nine months ended June 30,
(in thousands)	2018		2019		2018		2019
United States	$	4,587	$	8,687	$	12,011	$	26,567
EMEA		1,624		3,508		4,116		9,257
APAC		268		878		740		2,017
Americas		62		527		153		807

Total	$	6,541	$	13,600	$	17,020	$	38,648

Summary of Revenue by Product

The table below sets forth revenues by product.


	Three months ended June 30,				Nine months ended June 30,
(in thousands)	2018		2019		2018		2019
Synthetic genes	$	4,237	$	6,242	$	11,903	$	18,850
Oligo pools		810		1,214		2,146		3,280
DNA libraries		523		578		1,208		1,654
NGS tools		971		5,566		1,763		14,864

Total	$	6,541	$	13,600	$	17,020	$	38,648

Summary of Revenue by Industry

The table below sets forth revenues by industry.


	Three months ended June 30,				Nine months ended June 30,
(in thousands)	2018		2019		2018		2019
Industrial chemicals	$	3,140	$	5,319	$	9,474	$	16,051
Academic research		1,971		4,497		4,223		9,206
Healthcare		1,185		3,291		2,901		12,412
Agricultural		245		493		422		979

Total	$	6,541	$	13,600	$	17,020	$	38,648

The Company - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended
	May 31, 2019	Oct. 31, 2018	Jun. 30, 2019	Sep. 30, 2018
Accumulated deficit			$ (287,343)	$ (210,855)
Proceeds of underwritten public offering common stock	$ 84,300
IPO [Member]
Proceeds of underwritten public offering common stock		$ 69,600

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions	1 Months Ended	9 Months Ended
	Oct. 31, 2018	Jun. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)
Accounting Policies [Abstract]
Reverse stock split description	one-for-0.101
Reverse stock split ratio	0.101
Deferred offering costs included in non-current assets			$ 3.7
Additional deferred offering costs incurred		$ 2.4

Summary of Significant Accounting Policies - Summary of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($)
$ in Thousands

Jun. 30, 2019

Sep. 30, 2018

Jun. 30, 2018

^[1]

Sep. 30, 2017

^[1]

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]

Cash and cash equivalents

$ 68,212

$ 80,757

Restricted cash, non-current

579

Restricted cash, current (within prepaid expenses and other current assets)

194

201

Total cash, cash equivalents and restricted cash

$ 68,985

$ 81,537

$ 91,102

$ 31,429

[1]	Adjusted to reflect the retrospective adoption of Accounting Standards Update (ASU) 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash.

Fair Value Measurement - Summary of Company's Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Sep. 30, 2018
Assets
Assets, Totals	$ 161,787	$ 80,757
Corporate bonds [Member]
Assets
Assets, Totals	7,529
Commercial Paper [Member]
Assets
Assets, Totals	21,904
US Government Treasury Bills [Member]
Assets
Assets, Totals	67,311
Redeemable Convertible Preferred Stock Warrant Liability [Member]
Liabilities
Redeemable convertible preferred stock warrant liability		631
Cash [Member]
Assets
Assets, Totals	13,739	46,823
Money Market Funds [Member]
Assets
Assets, Totals	51,304	33,934
Fair Value, Inputs, Level 1 [Member]
Assets
Assets, Totals	132,354	80,757
Fair Value, Inputs, Level 1 [Member] \| US Government Treasury Bills [Member]
Assets
Assets, Totals	67,311
Fair Value, Inputs, Level 1 [Member] \| Cash [Member]
Assets
Assets, Totals	13,739	46,823
Fair Value, Inputs, Level 1 [Member] \| Money Market Funds [Member]
Assets
Assets, Totals	51,304	33,934
Fair Value, Inputs, Level 2 [Member]
Assets
Assets, Totals	29,433
Fair Value, Inputs, Level 2 [Member] \| Corporate bonds [Member]
Assets
Assets, Totals	7,529
Fair Value, Inputs, Level 2 [Member] \| Commercial Paper [Member]
Assets
Assets, Totals	$ 21,904
Fair Value, Inputs, Level 3 [Member] \| Redeemable Convertible Preferred Stock Warrant Liability [Member]
Liabilities
Redeemable convertible preferred stock warrant liability		$ 631

Fair Value Measurement - Summary of Reconciliation of Beginning and Ending Balances of the Level 3 Instruments (Detail) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value, beginning balance	$ 631	$ 644
Conversion of redeemable convertible preferred stock warrants to common stock warrants	(631)
Change in fair value recorded in other income (expense), net		66
Fair value, ending balance		710
Series A Redeemable Convertible Preferred Stock [Member]
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value, beginning balance	365	331
Conversion of redeemable convertible preferred stock warrants to common stock warrants	(365)
Change in fair value recorded in other income (expense), net		43
Fair value, ending balance		374
Series B Redeemable Convertible Preferred Stock [Member]
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value, beginning balance	94	110
Conversion of redeemable convertible preferred stock warrants to common stock warrants	(94)
Change in fair value recorded in other income (expense), net		16
Fair value, ending balance		126
Series C Redeemable Convertible Preferred Stock [Member]
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value, beginning balance	130	152
Conversion of redeemable convertible preferred stock warrants to common stock warrants	(130)
Change in fair value recorded in other income (expense), net		2
Fair value, ending balance		154
Series D Redeemable Convertible Preferred Stock [Member]
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value, beginning balance	42	51
Conversion of redeemable convertible preferred stock warrants to common stock warrants	$ (42)
Change in fair value recorded in other income (expense), net		5
Fair value, ending balance		$ 56

Inventories - Summary of Inventory (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Sep. 30, 2018
Inventory, Net [Abstract]
Raw Materials	$ 2,995	$ 2,988
Work-in-process	1,373	2,273
Finished Goods	1,128	767
Total inventories	$ 5,496	$ 6,028

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2018
Goodwill And Intangible Assets [Line Items]
Changes in carrying value of goodwill			$ 0		$ 0
Maximum [Member]
Goodwill And Intangible Assets [Line Items]
Total amortization expense related to intangible assets	$ 100,000	$ 100,000	$ 200,000	$ 200,000

Goodwill and Intangible Assets - Summary of Intangible Assets Balances (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Jun. 30, 2019	Sep. 30, 2018
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 1,240	$ 1,240
Accumulated amortization	(681)	(528)
Net book value	$ 559	$ 712
Developed Technology [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in years	6 years	6 years
Gross carrying amount	$ 1,220	$ 1,220
Accumulated amortization	(661)	(508)
Net book value	$ 559	$ 712
Tradenames & Trademarks [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in years	2 years	2 years
Gross carrying amount	$ 20	$ 20
Accumulated amortization	$ (20)	$ (20)

Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Raw materials purchased from related party investor	$ 0.5	$ 0.7	$ 2.6	$ 1.8
Description of related party transactions			During the three months ended June 30, 2018 and 2019, the Company purchased raw materials from a related party investor in the amount of $0.7 million and $0.5 million, respectively. During the nine months ended June 30, 2018 and 2019, the Company purchased raw materials from a related party investor in the amount of $1.8 million and $2.6 million, respectively. Payable balances and cash receipts and receivable balances with the related parties were immaterial as of September 30, 2018 and June 30, 2019.

A description of the related party transaction, including transactions to which no amounts or nominal amounts were ascribed and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements. Examples of common related party transactions are, sales, purchases and transfers of realty and personal property, services received or furnished, loans and leases to and from top management and affiliates.

Warrants - Summary of Issued Warrants for Its Redeemable Convertible Preferred Stock and Common Stock (Detail) - USD ($)
$ / shares in Units, $ in Thousands

9 Months Ended

12 Months Ended

Jun. 30, 2019

Jun. 30, 2018

Sep. 30, 2018

Nov. 30, 2018

^[1]

$ 66

Warrants One [Member]

36,838

$ 3.26

Warrants Two [Member]

32,063

Series A Redeemable Convertible Preferred Stock [Member]

$ 6.24

36,838

$ 365

Oct. 08, 2013

Oct. 08, 2023

Series B Redeemable Convertible Preferred Stock [Member]

$ 3.26

16,221

$ 94

Sep. 02, 2014

Sep. 02, 2024

Series C Redeemable Convertible Preferred Stock [Member]

$ 7.84

18,854

$ 130

Dec. 22, 2015

Dec. 22, 2025

Series D Redeemable Convertible Preferred Stock [Member]

$ 14.85

7,531

$ 42

Mar. 28, 2016

Mar. 28, 2026

Redeemable Convertible Preferred Stock [Member]

$ 21.24

79,444

$ 631

Common Stock [Member]

74,670

64,127

$ 486

Sep. 06, 2017

Sep. 06, 2027

Common Stock [Member] | Warrants One [Member]

$ 6.24

16,221

Sep. 02, 2014

Sep. 02, 2024

Common Stock [Member] | Warrants Two [Member]

$ 7.84

18,854

Dec. 22, 2015

Dec. 22, 2025

Common Stock [Member] | Warrants Three [Member]

$ 14.85

7,531

Mar. 28, 2016

Mar. 28, 2026

Common Stock [Member] | Warrants Four [Member]

$ 21.24

32,064

Sep. 06, 2017

Sep. 06, 2027

$ 6.24

[1]	Adjusted to reflect the retrospective adoption of Accounting Standards Update (ASU) 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash.

Warrants - Additional Information (Detail)	1 Months Ended
Warrants - Additional Information (Detail)	Nov. 30, 2018 $ / shares shares
Class of Warrant or Right [Line Items]
Net exercise of stock warrants	68,901
Common stock issued for cashless exercise	57,122
Warrants One [Member]
Class of Warrant or Right [Line Items]
Number of shares underlying warrants	36,838
Exercise price per share \| $ / shares	$ 3.26
Warrants Two [Member]
Class of Warrant or Right [Line Items]
Number of shares underlying warrants	32,063
Exercise price per share \| $ / shares	$ 6.24

Stock-based Compensation - Additional Information (Detail) - USD ($) $ in Millions		9 Months Ended
	Sep. 26, 2018	Jun. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, stock options		$ 25.5
Unrecognized stock-based compensation expense, period for recognition		3 years 7 months 6 days
2018 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Minimum annual increase in share reserved for issuance	999,900
Annual automatic Increase in share reserved for issuance	4.00%
2018 Equity Incentive Plan [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares may be issued	5,856,505
2018 ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Minimum annual increase in share reserved for issuance	249,470
Annual automatic Increase in share reserved for issuance	1.00%
Aggregate number of common stock shares reserved for issuance	275,225
2018 ESPP [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of payroll deduction to purchase common stock	15.00%
2015 ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
ESPP eligible employee common stock purchase price ratio	85.00%
Restricted Stock Units (RSUs) [Member] \| 2018 ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, stock options		$ 10.8
Unrecognized stock-based compensation expense, period for recognition		4 years 2 months 12 days

Stock-based compensation - Activity Under The Equity Incentive Plans (Detail) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Jun. 30, 2019 USD ($) $ / shares shares	Sep. 30, 2018 USD ($) $ / shares shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Shares available, Outstanding Beginning Balance	860,287
Shares available, Additional shares authorized	2,494,700
Shares available, Stock options granted	(1,618,676)
Shares available, Stock options forfeited	340,899
Shares available, Restricted stock units granted	(500,132)
Shares available, Forfeiture of restricted stock units	24,221
Shares available, Early exercised options repurchased	442
Shares available, Outstanding Ending Balance	1,601,741	860,287
Number of options, Outstanding beginning balance	2,520,485
Options outstanding, Stock options granted	1,618,676
Options outstanding, Stock options exercised	(191,599)
Options outstanding, Stock options forfeited	(340,899)
Number of options, Outstanding ending balance	3,606,663	2,520,485
Vested or expected to vest and exercisable	3,606,663
Weighted average exercise price per share, Outstanding Beginning Balance \| $ / shares	$ 8.22
Weighted average exercise price per share, Stock options granted \| $ / shares	25.21
Weighted average exercise price per share, Stock options exercised \| $ / shares	5.95
Weighted average exercise price per share, Stock options forfeited \| $ / shares	15.93
Weighted average exercise price per share, Outstanding Ending Balance \| $ / shares	15.24	$ 8.22
Weighted average exercise price per share, Vested or expected to vest and exercisable \| $ / shares	$ 15.24
Weighted average remaining contractual term, Outstanding	8 years 4 months 27 days	8 years 4 months 17 days
Weighted average remaining contractual term, Vested or expected to vest and exercisable	8 years 4 months 27 days
Aggregate intrinsic value, Outstanding \| $	$ 50,051	$ 11,483
Aggregate intrinsic value, Outstanding Vested or expected to vest and exercisable \| $	$ 50,051

Stock-based compensation - Total Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 3,032	$ 603	$ 7,807	$ 1,875
Cost of Revenues [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	446	100	1,155	275
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	530	109	1,251	521
Selling, General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 2,056	$ 394	$ 5,401	$ 1,079

Stock-based Compensation - Schedule of Nonvested Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Jun. 30, 2019
Nonvested Restricted Stock Units Activity [Line Items]
Number of shares, Outstanding Beginning Balance	0
Number of shares, granted	500,132
Number of shares, vested	(4,581)
Number of shares, forfeited	(24,221)
Number of shares, Outstanding Ending Balance	471,330
Expected to vest, Outstanding	471,330
Weighted average grant date fair value price per share, Outstanding Beginning Balance	$ 0
Weighted average grant date fair value price per share, granted	26.12
Weighted average grant date fair value price per share, vested	23.62
Weighted average grant date fair value price per share, forfeited	25.67
Weighted average grant date fair value price per share, Outstanding	$ 26.17
Weighted average remaining contractual term, Expected to vest	4 years 1 month 13 days
Aggregate intrinsic value, Outstanding	$ 0
Aggregate intrinsic value, Expected to vest	$ 9,194

Net Loss Per Share Attributable to Common Stockholders - Computation of the Company's Basic and Diluted Net Loss Per Share Attributable to Common Stockholders (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Numerator:
Net loss attributable to common stockholders	$ (27,916)	$ (17,624)	$ (76,488)	$ (51,434)
Denominator:
Weighted average shares used in computing net loss per share, basic and diluted	30,290,150	2,849,544	25,789,794	2,719,051
Net loss per share attributable to common stockholders, basic and diluted	$ (0.92)	$ (6.18)	$ (2.97)	$ (18.92)

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