View Filing Data

Other comprehensive income

1,887

Ending Balance at Sep. 30, 2017

(59,310)

^[1]

(59,310)

(133,358)

6,228

(139,619)

Ending Balance , shares at Sep. 30, 2017

3,178,819

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

4,292,365

Ending Balance at Sep. 30, 2018

290,483

$ 9,141

$ 25,900

$ 36,726

$ 218,716

Ending Balance , shares at Sep. 30, 2018

2,817,723

3,315,645

2,491,483

10,326,454

Issuance of common stock in public offering

$ 90,850

Exercise of stock options

$ 215

215

Exercise of stock options , shares

62,862

Repurchase of early exercised stock options , shares

(9,639)

Forfeiture of restricted common stock , shares

$ 2,961

2,961

(21,146)

Treasury stock purchase, Shares

(4,848)

Treasury stock purchase

(58)

Other comprehensive income

Ending Balance at Sep. 30, 2018

(71,236)

^[1]

(71,236)

(201,422)

9,346

(210,855)

Ending Balance , shares at Sep. 30, 2018

3,206,048

Ending Balance , shares at Sep. 30, 2019

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, shares

8,352

Issuance of shares under the employee stock purchase plan

2,700

Issuance of shares under the employee stock purchase plan, shares

219,144

Exercise of stock options

$ 2,264

2,264

Exercise of stock options , shares

331,205

Conversion of redeemable convertible preferred stock warrant liability to equity

$ 631

631

Conversion of redeemable convertible preferred stock to common stock

290,462

$ (9,141)

$ (25,900)

$ (36,726)

$ (218,716)

290,462

Conversion of redeemable convertible preferred stock to common stock , shares

(2,817,723)

(3,315,645)

(2,491,483)

(10,326,454)

18,951,305

Repurchase of early exercised stock options , shares

(442)

Net exercise of stock warrants , shares

11,170

94,563

Other comprehensive income

Ending Balance at Sep. 30, 2019

(107,669)

$ 152,082

$ 470,425

$ 181

$ (318,524)

Ending Balance , shares at Sep. 30, 2019

32,872,675

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

Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Net of underwriting discounts, commissions and offering expenses	$ 17,210
Series D Redeemable Convertible Preferred Stock [Member]
Issuance of redeemable convertible preferred stock, net of financing cost		$ 339	$ 165

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

12 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2017

Cash flows from operating activities

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

$ (107,669)

$ (71,236)

^[1]

$ (59,310)

^[1]

Depreciation and amortization

6,111

5,727

^[1]

5,021

^[1]

Loss on disposal of property and equipment

189

^[1]

507

^[1]

Discount accretion on investment securities

11,170

2,961

^[1]

1,891

^[1]

(1,249)

Non-cash interest expense

233

254

^[1]

363

^[1]

Change in fair value of redeemable convertible preferred stock warrant liability

^[1]

(13)

261

Amortization of debt discount

282

308

^[1]

Changes in assets and liabilities:

Accounts receivable, net

(6,685)

(3,073)

^[1]

(1,623)

^[1]

Inventories

(1,302)

(4,202)

^[1]

(599)

^[1]

Prepaid expenses and other current assets

746

(1,760)

^[1]

(324)

^[1]

Other non-current assets

(2,064)

(812)

^[1]

(481)

^[1]

Accounts payable

3,278

3,759

^[1]

560

^[1]

Accrued expenses

4,210

(114)

^[1]

621

^[1]

Accrued Compensation

5,060

1,932

^[1]

1,067

^[1]

Other liabilities

(247)

^[1]

650

^[1]

Net cash used in operating activities

(87,937)

(66,164)

^[1]

(51,301)

^[1]

Cash flows from investing activities

Purchases of property and equipment

(14,757)

(3,688)

^[1]

(6,594)

^[1]

Proceeds from sale of property and equipment

^[1]

266

^[1]

Purchases of investments

(177,574)

(3,523)

^[1]

(40,587)

^[1]

Maturity of investments

87,500

34,500

^[1]

36,925

^[1]

Net cash provided by (used in) investing activities

(104,810)

27,306

^[1]

(9,990)

^[1]

Cash flows from financing activities

Proceeds from exercise of stock options

2,170

331

^[1]

205

^[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]

90,850

65,596

Proceeds from issuance under employee stock purchase plan

2,700

Payments of deferred offering costs

^[1]

(2,359)

Borrowings of long-term debt

^[1]

2,174

Repayments of long-term debt

(2,500)

(4,173)

^[1]

Net cash provided by financing activities

158,578

88,822

^[1]

63,802

^[1]

Effect of exchange rates on cash, cash equivalents and restricted cash

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

(34,139)

49,964

2,511

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

^[1]

81,537

31,573

29,062

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

47,398

81,537

^[1]

31,573

^[1]

Supplemental disclosure of cash flow information

Interest paid

779

751

^[1]

702

^[1]

Income taxes paid, net of refunds

291

179

^[1]

Non-cash investing and financing activities

Property and equipment additions included in accrued expenses and accounts payable

170

344

^[1]

285

^[1]

Fair value of warrants issued in connection with debt

^[1]

$ 486

Deferred offering costs included in accounts payable and accrued expenses

^[1]

$ 1,308

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

12 Months Ended

Sep. 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. DNA is used in many applications across different industries: industrial chemicals, academic, healthcare and agriculture.

The core of our platform is a proprietary technology that pioneers a new method of manufacturing synthetic DNA by “writing” DNA on a silicon chip. We have combined this technology with proprietary software, scalable commercial infrastructure and an

e-commerce

platform to create an integrated technology platform that enables us to achieve high levels of quality, precision, automation, and manufacturing throughput at a significantly lower cost than our competitors. We are leveraging our unique technology to manufacture a broad range of synthetic

DNA-based

products, including synthetic genes, tools for next generation sample preparation, and antibody libraries for drug discovery and development.

The Company has a limited operating history and its prospects are subject to risks, expenses and uncertainties frequently encountered by companies in this industry. These risks include, but are not limited to, the uncertainty of availability of additional financing, market acceptance of its products, the ability to retain and attract new customers, and the uncertainty of achieving future profitability.

The Company has generated net losses in all periods since inception. As of September 30, 2019, the Company had an accumulated deficit of $318.5 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 balances on hand will be sufficient to fund operations for at least one year from the issuance of these consolidated financial statements.

However, the Company may need to obtain additional financing to fund operations beyond this period, and there can be no assurance that the Company will be successful in raising additional financing 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

12 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Summary of significant accounting policies

2. Summary of significant accounting policies

Basis of presentation and use of estimates

The presentation of consolidated financial statements in conformity with accounting principles generally accepted in the United States 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 consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Such estimates include the valuation of deferred tax assets, stock-based compensation expense, determination of the net realizable value of inventory, and the fair value of the Company’s common stock and redeemable convertible preferred stock warrant liabilities. Actual results could differ from those estimates. The Company’s consolidated financial statements include its wholly-owned subsidiaries. All intercompany balances and accounts are eliminated in consolidation.

Risks and uncertainties

The Company relies on third parties for the supply and manufacture of its products, including a single-source supplier for a critical component, as well as third-party logistics providers. In instances where these parties fail to perform their obligations, the Company may be unable to find alternative suppliers to satisfactorily deliver its products to its customers on time, if at all.

The Company operates in a dynamic and highly competitive industry and believes that changes in any of the following areas could have a material adverse effect on the Company’s future financial position, results of operations, or cash flows

ability to obtain future financing; advances and trends in new technologies and industry standards; market acceptance of the Company’s products; development of sales channels; certain strategic relationships; litigation or claims against the Company regarding intellectual property, patent, product, regulatory, or other factors; and the ability to attract and retain employees necessary to support its growth.

Refer to Note 7 for discussion of our current litigation with Agilent which is set to go to trial in February 2020 and could have a material adverse effect on the Company.

The Company has expended and expects to continue to expend substantial funds to complete the research and development of its production process. The Company may require additional funds to commercialize its products and may be unable to entirely fund these efforts with its current financial resources. Additional funds may not be available on acceptable terms, if at all. If adequate funds are unavailable on a timely basis from operations or additional sources of financing, the Company may have to delay the sale of the Company’s products and services which would materially and adversely affect its business, financial condition and operations.

Concentration of credit risk

Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents, short-term investments and accounts receivable. Substantially all of the Company’s cash is held by one financial institution that management believes is of high credit quality. Such deposits may, at times, exceed federally insured limits. The Company’s investment policy addresses the level of credit exposure by establishing a minimum allowable credit rating and by limiting the concentration in any one investment.

The Company’s accounts receivable is derived from customers located principally in the United States and Europe. The Company maintains credit insurance for certain of its customer balances, performs ongoing credit evaluations of its customers, and maintains allowances for potential credit losses on customers’ accounts when deemed necessary. The Company does not typically require collateral from its customers. Credit losses historically have not been material. The Company continuously monitors customer payments and maintains an allowance for doubtful accounts based on its assessment of various factors including historical experience, age of the receivable balances, and other current economic conditions or other factors that may affect customers’ ability to pay.

Customer concentration

One customer accounted for more than 10% of total revenues as follows:


	Year ended September 30,
	2019			2018			2017
Customer A		17	%		34	%		40	%

One customer accounted for greater than 10% of net accounts receivable as follows:


	September 30,
	2019			2018
Customer A		13	%		27	%

Cash and cash equivalents

Cash equivalents that are readily convertible to cash are stated at cost, which approximates fair value. The Company considers all highly liquid investments with an original or remaining maturity of three months or less at the time of purchase to be cash equivalents. Cash equivalents consist of investments in money market funds as of September 30, 2019 and 2018.

Short-term investments

The Company invests in various types of securities, including United States government, commercial paper, and corporate debt securities. It classifies its investments as

available-for-sale

and records them at fair value based upon market prices at period end. Unrealized gains and losses that are deemed temporary in nature are recorded in accumulated other comprehensive

income

as a separate component of stockholders’

equity (

deficit

)

. Dividend and interest income are recognized when earned. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of investments sold. The Company may sell these securities at any time for use in current operations.

Accounts receivable

Trade receivables include amounts billed and currently due from customers, recorded at the net invoice value and are not interest bearing. The amounts due are stated at their net estimated realizable value. The Company maintains an allowance for doubtful accounts to provide for the estimated amounts of receivables that will not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and collateral to the extent applicable. The Company

re-evaluates

such allowance on a regular basis and adjusts its allowance as needed. Once a receivable is deemed to be uncollectible, such balance is charged against the allowance.

The Company has a short

order-to-invoice

lifecycle, as most products can be manufactured within one month. Upon delivery of the products to the customer, the Company invoices the customer. The typical timing of payment is net 30 days.

Fair value of financial instruments

The carrying amounts of the Company’s financial instruments including cash equivalents, short term investments, and accounts receivable approximate fair value due to their relatively short maturities. The carrying amounts of the redeemable convertible preferred stock warrant liability represent their fair values. Based on the borrowings rates currently available to the Company for loans with similar terms, the carrying value of the Company’s long-term debt approximates its fair value (level 2 within the fair value hierarchy).

Inventories

Inventory is stated at the lower of cost or net realizable value. Cost is determined using the

first-in,

first-out

method. Determining net realizable value of inventory involves judgments and assumptions, including projecting selling prices and costs to sell. Provisions are made to reduce excess and obsolete inventories to their estimated net realizable value based on forecasted demand, past experience, the age and nature of inventories.

Property and equipment

Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets or the remaining lease term of the respective leasehold improvements assets, if any. The Company recorded depreciation and amortization expense of $6.1 million, $5.5 million and $4.8 million for the years September 30, 2019, 2018 and 2017, respectively. Estimated lives of property and equipment are as follows:


Laboratory equipment		5 Years
Furniture, fixtures and other equipment		5 Years
Computer equipment		3 Years
Computer software		3 Year s
Leasehold improvements		Lesser of useful life or facilities’ lease term.

Maintenance and repairs are charged to expense as incurred. Betterments are capitalized and depreciated through the life of the lease. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the balance sheet and any resulting gain or loss is reflected in operations in the period realized.

Capitalized software development costs

Costs associated with

internal-use

software systems, including those

to improve e-commerce

capabilities, during the application development stage are capitalized. Capitalization of costs begins when the preliminary project stage is completed, management has committed to funding the project, and it is probable that the project will be completed and the software will be used to perform the function intended. Capitalization ceases at the point when the project is substantially complete and is ready for its intended purpose. The capitalized amounts are included in property and equipment, net on the consolidated balance sheets.

Capitalized software development costs were $2.3 million and $1.9 million as of September 30, 2019 and 2018, respectively. Capitalized costs are amortized from the project completion date, using the straight-line method over an estimated useful life of the assets, which is

three

years.

Long-lived assets

The Company reviews property and equipment and intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparison of the carrying amount to the future undiscounted cash flows which the assets are expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds

their fair value

. There have been no such impairments of long-lived assets during the years ended September 30, 2019, 2018 and 2017.

Leases

The Company has entered into lease agreements for its manufacturing, research and development and office facilities. These leases qualify as and are accounted for as operating leases. Rent expense is recognized on a straight-line basis over the term of the lease and, accordingly, the Company records the difference between cash rent payments and the recognition of rent expense as a prepaid rent asset or a deferred rent liability, as appropriate for each lease.

Goodwill and purchased intangible assets

Goodwill is evaluated for impairment annually or more frequently if events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. If, based on a qualitative assessment, the Company determines it is more likely than not that goodwill is impaired, a quantitative assessment is performed to determine if the fair value of the Company’s sole reporting unit is less than its carrying value.

Purchased intangible assets with finite lives are generally amortized over their estimated useful lives using the straight-line method. The Company reviews intangible assets for impairment whenever events or changes in business circumstances indicate that the carrying amounts of the assets may not be fully recoverable. Impairment assessments inherently involve judgment as to assumptions about expected future cash flows and the impact of market conditions on those assumptions.

Segment information

The Company has one business activity, which is manufacturing of synthetic DNA using its semiconductor-based silicon platform and operates as one reportable and operating segment. The Company’s chief operating decision-maker, its Chief Executive Officer (CEO), reviews the Company’s operating results on an aggregate basis for purposes of allocating resources and evaluating financial performance.

Revenue recognition

Effective October 1, 2017, the Company elected to early adopt the requirements of Accounting Standards Codification (ASC) 606,

Revenue from Contracts with Customers

using the full retrospective method. The Company evaluated the impact on revenues, loss from operations, net loss attributable to common stockholders and basic and diluted earnings per share for all periods presented and concluded that there was no material impact on the Company’s consolidated financial statements for all periods presented.

The Company’s revenue is generated through the sale of synthetic biology tools, such as synthetic genes, or clonal genes and fragments, oligonucleotides pools, or oligo pools, next generation sequencing, or NGS tools and DNA libraries. The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable.

Contracts with customers are generally in the written form of a purchase order or a quotation, which outline the promised goods and the agreed upon price. Such orders are often accompanied by a Master Supply or Distribution Agreement that establishes the terms and conditions, rights of the parties, delivery terms, and pricing. The Company assesses collectability based on a number of factors, including past transaction history and creditworthiness of the customer.

For all of the Company’s contracts to date, the customer orders a specified quantity of synthetic DNA

;

therefore, the delivery of the ordered quantity per the purchase order is accounted for as one performance obligation. Some contracts may contain prospective discounts when certain order quantities are exceeded; however, these future discounts are either not significant, not deemed to be incremental to the pricing offered to other customers, or not enforceable options to acquire additional goods. As a result, these discounts do not constitute a material right and do not meet the definition of a separate performance obligation. The Company does not offer retrospective discounts or rebates.

The transaction price is determined based on the agreed upon rates in the purchase order or master supply agreements applied to the quantity of synthetic DNA that was manufactured and shipped to the customer. The Company’s contracts include only one performance obligation – the delivery of the product to the customer. Accordingly, all of the transaction price, net of any discounts, is allocated to the one performance obligation. Therefore, upon delivery of the product, there are no remaining performance obligations. The Company’s shipping and handling activities are considered a fulfillment cost. The Company has elected to exclude all sales and value added taxes from the measurement of the transaction price. The Company has not adjusted the transaction price for significant financing since the time period between the transfer of goods and payment is less than one year.

The Company recognizes revenue at a point in time when control of the products is transferred to the customer. Management applies judgment in evaluating when a customer obtains control of the promised good which is generally when the product is shipped or delivered to the customer. The Company’s customer contracts generally include a standard assurance warranty to guarantee that its products comply with agreed specifications. The Company reduces revenue by the amount of expected returns which have been insignificant.

The Company has elected the practical expedient to not disclose the consideration allocated to remaining performance obligations and an explanation of when those amounts are expected to be recognized as revenue since the duration of the contracts is less than one year.

Refer to Note 15 for the disaggregation of revenues by geography, by product and by industry.

The Company does not have any contract assets or contract liabilities as of September 30, 2019 and 2018. For all periods presented, the Company did not recognize revenue from amounts that were included in the contract liability balance at the beginning of each period. In addition, for all periods presented, there was no revenue recognized in a reporting period from performance obligations satisfied in previous periods.

Based on the nature of the Company’s contracts with customers which are recognized over a term of less than 12 months, the Company has elected to use the practical expedient whereby costs to obtain a contract are expensed as they are incurred.

Research and development

Research and development expenses consist of compensation costs, employee benefits, subcontractors, research supplies, allocated facility related expenses and allocated depreciation and amortization. All research and development costs are expensed as incurred.

Advertising costs

Costs related to advertising and promotions are expensed to sales and marketing as incurred. Advertising and promotion expenses for the years ended September 30, 2019, 2018 and 2017, were $1.3 million, $0.9 million and $0.1 million, respectively.

Government contract payments

The Company recognizes payments received from its funded research and development agreement with the Defense Advanced Research Projects Agency (DARPA), when milestones are achieved and records them as a reduction of research and development expenses. In fiscal 2019 and 2018, the Company received $0.5 million and $0.3 million, respectively, in DARPA payments. There were no DARPA payments received during the year ended September 30, 2017.

Redeemable convertible preferred stock warrant liability

Outstanding warrants that were related to the Company’s redeemable convertible preferred stock are classified as liabilities on the balance sheet. As the warrants to purchase redeemable convertible preferred stock were exercisable into shares of convertible preferred stock, the Company had recognized a liability for the fair value of its warrants on the consolidated balance sheets upon issuance and subsequently remeasured the liability to fair value at the end of each reporting period. In connection with the closing of

our

IPO, all of the outstanding warrants to purchase redeemable convertible preferred stock automatically converted to warrants to purchase common stock, which qualify for equity classification and no further measurement has been required thereafter.

Common stock warrants

Warrants to purchase the Company’s common stock issued in conjunction with debt are recorded as additional

paid-in-capital

and classified as equity on the consolidated balance sheets. During the year ended September 30, 2017, the Company recorded $0.5 million in additional

paid-in-capital

for the fair value of warrants to purchase common stock issued in connection with long-term debt. There were no common stock warrants issued during the years ended September 30, 2018 and 2019.

Stock-based compensation

The Company maintains performance incentive plans under which incentive and nonqualified stock options and restricted stock units are granted primarily to employees and may be granted to members of the board of directors and certain

non-employee

consultants, and employees may participate in an employee stock purchase plan.

The Company recognizes stock compensation in accordance with ASC 718,

Compensation—Stock Compensation

. ASC 718 requires the recognition of compensation expense, using a fair value-based method, for costs related to all stock-based payments including stock options, restricted stock units and employee stock purchase plan.

The Company recognizes fair value of stock options granted to

non-employees

as a stock-based compensation expense over the period in which the related services are received. The Company recognizes forfeitures as they occur. The Company believes that the estimated fair value of stock options is more readily measurable than the fair value of the services rendered.

Net loss per share attributable to common stockholders

The Company calculates its basic and diluted net loss per share attributable to common stockholders in conformity with

the two-class method

required for companies with participating securities. In computing diluted net loss attributable to common stockholders, undistributed earnings

are re-allocated to

reflect the potential impact of dilutive securities. The Company’s basic net loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period. For purposes of the calculation of diluted net loss per share attributable to common stockholders, redeemable convertible preferred stock, unvested shares of common stock issued upon the early exercise of stock options, shares issuable for employee stock purchase plan contributions received, warrants to purchase redeemable convertible preferred stock, warrants to purchase common stock, unvested restricted common stock, unvested restricted stock units and stock options to purchase common stock are considered potentially dilutive securities but have been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect is antidilutive.

Basic and diluted net loss per share of common stock attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, less shares subject to repurchase, and excludes any dilutive effects of employee stock-based awards and warrants. Because the Company has reported a net loss for the years ended September 30, 2019, 2018 and 2017, diluted net loss per common share is the same as the basic net loss per share for those years.

The Company considered all series of its convertible preferred stock to be participating securities as they were entitled to receive noncumulative dividends prior and in preference to any dividends on shares of common stock. Due to the Company’s net losses, there was no impact on the loss per share calculation in applying

the two-class method

since the participating securities had no legal obligation to share in any losses.

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.

Income taxes

The Company accounts for income taxes using the asset and liability method whereby deferred tax asset and liability accounts are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are currently in effect. Valuation allowances are established where necessary to reduce deferred tax assets to the amounts expected to be realized.

Deferred offering costs

Deferred offering costs, which consist of direct incremental legal, consulting, banking and accounting fees relating to the Company’s IPO, were initially capitalized and subsequently offset against proceeds from the IPO within stockholders’ equity. As of September 30, 2019, there were no capitalized deferred offering costs on the consolidated balance sheets. As of September 30, 2018, there was $3.7 million of deferred offering costs within other

non-current

assets on the consolidated balance sheets.

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. A modified retrospective approach is required, applying the new standard to leases existing as of the date of initial application. An entity may choose to apply the standard as of either its effective date or the beginning of the earliest comparative period presented in the financial statements. The Company will adopt the new standard on October 1, 2019, the first day of fiscal 2020, using the effective date as the date of initial application. Consequently, financial information will not be updated, and the disclosures required under the new standard will not be provided for dates and periods prior to the first quarter of fiscal 2020. The Company will elect certain practical expedients permitted under the transition guidance within the new standard, which among other things, allow the Company to carry forward its prior conclusions about lease identification and classification.

The Company estimates the key change upon adoption of the standard will result in balance sheet recognition of additional lease assets and lease liabilities as of October 1, 2019, which

ll be

based on the present value of committed lease payments

which the Company expects to be consistent with the future minimum lease payments disclosed in Note 7

. The Company does not expect the adoption of the new standard to have a material impact on the recognition, measurement or presentation of lease expenses within its consolidated income statements, consolidated statements of comprehensive income or consolidated statements of cash flows.

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, 20

, 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 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 or restricted cash equivalents 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 or restricted cash equivalents. As a result, amounts generally described as restricted cash and restricted cash equivalents 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 consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash shown in the Company’s consolidated statements of cash flows for the periods presented:


	September 30,
	2019		2018		2017
Cash and cash equivalents		46,735		80,757		31,227
Restricted cash, non-current		579		579		202
Restricted cash, current (within prepaid expenses and other current assets)		84		201		144

Total cash, cash equivalents and restricted cash		47,398		81,537		31,573

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 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

12 Months Ended

Sep. 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.

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 table sets forth the cash and cash equivalents, and short-term investments as of September 30, 2019:


(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Cash and cash equivalents	$	46,735	$	—	$	—	$	46,735
Short-term investments		91,323		49		—		91,372

Total	$	138,058	$	49	$	—	$	138,107

The following table sets forth the cash and cash equivalents as of September 30, 2018:


(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Cash and cash equivalents	$	80,757	$	—	$	—	$	80,757

Total	$	80,757	$	—	$	—	$	80,757

As of September 30, 2019, financial assets and liabilities measured and recognized at fair value are as follows:


(in thousands)	Level 1		Level 2		Level 3		Fair value
Assets
Cash and cash equivalents	$	19,344	$	—	$	—	$	19,344
Money market funds		27,390		—		—		27,390
Corporate bonds		—		8,530		—		8,530
Commercial paper		—		28,361		—		28,361
U.S. government treasury bills		54,482		—		—		54,482

Total	$	101,216	$	36,891	$	—	$	138,107

As of September 30, 2018, financial assets and liabilities measured and recognized at fair value are as follows:


(in thousands)	Level 1		Level 2		Level 3		Fair value
Assets
Cash and cash equivalents	$	46,823	$	—	$	—	$	46,823
Money market funds		33,934		—		—		33,934

Total	$	80,757	$	—	$	—	$	80,757

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

The Company did not have short–term investments at September 30, 2018.

Redeemable convertible preferred stock warrants

The following table provides a reconciliation of beginning and ending balances of the Level 3 instruments during the years ended September 30, 2017, 2018 and 2019:


(in thousands)	Series A			Series B			Series C			Series D			Total
Redeemable convertible preferred stock warrant liability:
Fair value as of September 30, 2016	$	184		$	57		$	108		$	34		$	383
Change in fair value recorded in other income (expense), net		147			53			44			17			261

Fair value as of September 30, 2017	$	331		$	110		$	152		$	51		$	644
Change in fair value recorded in other income (expense), net		34			(16	)		(22	)		(9	)		(13	)

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 September 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.

Balance Sheet Related Disclosures [Abstract]

Balance sheet components

12 Months Ended

Sep. 30, 2019

Balance sheet components

4. Balance sheet components

The Company’s accounts receivable, net balance consists of the following:


	September 30,
(in thousands)	2019			2018
Trade Receivables	$	11,085		$	5,439
Other Receivables		1,313			75
Allowance for Doubtful Accounts		(294	)		(95	)

Accounts Receivable, net	$	12,104		$	5,419

Inventories consist of the following:


	September 30,
(in thousands)	2019		2018
Raw Materials	$	4,900	$	2,988
Work-in-process		1,157		2,273
Finished Goods		1,273		767

	$	7,330	$	6,028

Property and Equipment, net consists of the following:


	September 30,
(in thousands)	2019			2018
Laboratory equipment	$	26,021		$	18,865
Furniture, fixtures and other equipment		1,760			613
Computer equipment		2,777			2,137
Computer software		3,507			3,094
Leasehold improvements		3,772			3,340
Construction in progress		5,991			1,534

		43,828			29,583
Less: Accumulated depreciation and amortization		(22,993	)		(17,252	)

	$	20,835		$	12,331

Goodwill and intangible assets

12 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and intangible assets

5. Goodwill and intangible assets

There were no changes to the carrying value of goodwill during the years ended September 30, 2019 and 2018. Total amortization expense related to intangible assets was $0.2 million for the year ended September 30, 2019, $0.2 million for the year ended September 30, 2018 and $0.2 million for the year ended September 30, 2017.

The intangible assets balances are presented below:


	September 30, 2019
(in thousands, except for years)	Useful lives in years		Gross carrying amount		Accumulated amortization			Net book value
Developed Technology		6	$	1,220	$	(712	)	$	508
Tradenames & Trademarks		2		20		(20	)		—

Total indefinite-lived intangible assets			$	1,240	$	(732	)	$	508


	September 30, 2018
(in thousands, except for years)	Useful lives 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

Future annual amortization expense is as follows (in thousands):


Years ending September 30,
2020		203
2021		203
202 2		102
	$	508

Long-term debt

12 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Long-term debt

6. Long-term debt

In September 2017, the Company entered into a Fourth Amended and Restated Loan and Security Agreement (the Fourth Loan) with SVB for loan amounts aggregating up to $20.0 million in a series of three advances. The first advance provides a principal amount of $10.0 million, the second advance provides a principal amount of $5.0 million and the third advance provides a principal amount of $5.0 million during their respective draw down periods. The draw down periods for the second and third advances under this agreement have expired as of January 31, 2018 and June 30, 2018, respectively and were not utilized. In connection with the first advance the Company issued a warrant to purchase 64,127 shares of common stock at an exercise price of $6.24 per share. The Fourth Loan contains a subjective acceleration clause under which the Fourth Loan could become due and payable to SVB in the event of a material adverse change in the Company’s business. The term of the loan was 51 months with an interest rate of prime plus 3.00% and a final payment fee of $0.7 million.

The first advance, totaling $10.0 million, was drawn in September 2017 and comprised $7.8 million to refinance a prior loan and a new advance of $2.2 million. The debt provides for interest only payments through December 31, 2018 at which time monthly principal payments become due.

In addition, the Company obtained a revolving loan facility for a principal amount of up to $10.0 million for which the principal amount outstanding under the revolving line would accrue interest at a floating per annum rate equal to one percentage point (1.00%) above the prime rate, which interest shall be payable monthly. The Company accounted for this transaction as a debt modification and did not incur any gain or loss relating to the modification.

The Company’s credit facilities contain customary representations and warranties and customary affirmative and negative covenants applicable to the Company and its subsidiaries, including, among other things, restrictions on changes in business, management, ownership or business locations, indebtedness, encumbrances, investments, mergers or acquisitions, dispositions, maintenance of collateral accounts, prepayment of other indebtedness, distributions and transactions with affiliates. The credit facilities contain customary events of default subject in certain cases to grace periods and notice requirements, including (a) failure to pay principal, interest and other obligations when due, (b) material misrepresentations, (c) breach of covenants, conditions or agreements in the credit facilities, (d) default under material indebtedness, (e) certain bankruptcy events, (f) a material adverse change; (g) attachment, levy or restraint on business, (h) default with respect to subordinated debt, (i) cross default under the Company’s credit facilities, and (j) government approvals being revoked. As of September 30, 2017, all rights, title and interest to the Company’s personal property with the exception of the Company’s intellectual property, have been pledged as collateral, including cash and cash equivalents, short-term investments, accounts receivable, contractual rights to payment, license agreements, general intangibles, inventory and equipment. The Company was in compliance with all covenants under the loan and security agreement with SVB as of September 30, 2019 and 2018.

Future maturities of the Fourth Loan as of September 30, 2019 are as follows:


(in thousands)	Principal		Interest		Total
Years ending September 30,
2020	$	3,333		486	$	3,819
2021		3,333		214		3,547
2022		834		11		845

		7,500		711		8,211
Less: Interest						(711	)

Total amount of loan principal						7,500
Less unamortized debt discount						(269	)
Add: accretion of final payment fee						502

					$	7,733

Commitments and contingencies

12 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and contingencies

7. 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, Dr. Emily Leproust (the Complaint) alleging (i) breach of contract against the CEO, and two current or former employees (ii) breach of duty of loyalty against the CEO, and (iii) misappropriation of trade secrets by the Company, the CEO, and two current or former employees. On December 7, 2018, the Court granted Agilent’s motion to amend its complaint, permitting Agilent to file its Second Amended Complaint. This new complaint 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 trial to begin on February 24, 2020.

The Company believes that the 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 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.

Leases

The Company leases certain of its facilities under

non-cancellable

operating leases expiring at various dates through 2026. The Company is also responsible for utilities, maintenance, insurance, and property taxes under these leases.

Future minimum lease payments under all

non-cancelable

operating leases as of September 30, 2019 are as follows:


(in thousands)	Operating leases
Years ending September 30 :
2020	$	6,671
2021		5,909
2022		5,979
2023		6,064
2024		6,029
Thereafter		10,067

Total minimum lease payments	$	40,719

Rent expense was $4.9 million, $2.5 million and $2.2 million for the years ended September 30, 2019, 2018 and 2017, respectively. Rent expense is measured based upon amortizing minimum lease payments, including rent escalations under the lease term, using the straight-line method over the term of the lease.

Prepaid rent was $1.6 million as of September 30, 2019. There was

prepaid rent as of September 30, 2018. There was

deferred rent liability as of September 30, 2019. The deferred rent liability was $0.1 million as of September 30 2018.

Related party transactions

12 Months Ended

Sep. 30, 2019

Related party transactions

8. Related party transactions

During the year ended September 30, 2019, the Company purchased raw materials from a related party investor in the amount of $3.2 million. Payable balances and cash receipts and receivable balances with the related party were immaterial as of September 30, 2019.

During the year ended September 30, 2018, the Company purchased raw materials from a related party investor in the amount of $2.3 million. Payable balances and cash receipts and receivable balances with the related party were immaterial as of September 30, 2018.

During the year ended September 30, 2017, the Company sold 170,085 shares of Series D redeemable convertible preferred stock to a related party. The Company also purchased raw materials from a related party investor in the amount of $2.0 million. Payable balances and cash receipts and receivable balances with the related party were immaterial as of September 30, 2017.

Income taxes

12 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income taxes

9. Income taxes

The Company recorded provision for income taxes of $0.3 million for the year ended September 30, 2019, $0.2 million for the year ended September 30, 2018 and $0.3 million for the year ended September 30, 2017.

The significant components of the Company’s deferred tax assets and liabilities are as follows:


	September 30,
(in thousands)	2019			2018
Net operating loss carryforwards	$	73,341		$	49,801
Research and development credit carryforwards		6,831			4,621
Other		4,553			1,919

Gross deferred tax assets		84,725			56,341
Less: Valuation allowance		(84,598	)		(56,158	)

Net deferred tax assets		127			183
Fixed assets		(1	)		(1	)
Intangible assets		(126	)		(182	)

Gross deferred tax liabilities		(127	)		(183	)

Total net deferred tax asset	$	—		$	—

The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate:


	Year ended September 30,
	2019			2018			2017
Tax expense computed at the federal statutory rate		21	%		24	%		35	%
Change in valuation allowance		(22	)%		4	%		(35	)%
Research and development credit benefit		1	%		1	%		1	%
Change in federal tax rate		—			(28	)%		—
Other expenses		—			(1	)%		(1	)%

Total income tax expense		—	%		—	%		—	%

Based on the available objective evidence, management believes it is more likely than not that the deferred tax assets will not be fully realizable. Accordingly, the Company has provided a full valuation allowance against its deferred tax assets at September 30, 2019

and

2018.

As of September 30, 2019, the Company had net operating loss carryforwards of approximately $293.6 million and $183.4 million available to reduce future taxable income, if any, for federal and state income tax purposes, respectively.

The net operating losses will begin to expire in fiscal 2032.

The Company also had federal and state research and development credit carryforwards of approximately $5.7 million and $5.1 million, respectively, at September 30, 2019. The federal credits will expire starting in

2033

if not utilized. The California research and development credits have no expiration date. Utilization of the net operating losses and tax credits is subject to annual limitation due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such annual limitations may result in the expiration of the net operating losses and tax credits before utilization.

The provisions of ASC

740-10,

Accounting for Uncertainty in Income Taxes

, prescribe a comprehensive model for the recognition, measurement, and presentation and disclosure in financial statements of any uncertain tax positions that have been taken or expected to be taken on a tax return. The Company has identified uncertain tax positions related to federal and state research and development credits.

The aggregate changes in the balance of gross unrecognized tax benefits are as follows:


(in thousands)	Federal and state
Balance as of September 30, 2016		822
Increases related to tax positions taken during 2017		562
Increases related to tax positions in prior years		241

Balance as of September 30, 2017		1,625
Increases related to tax positions taken during 2018		624

Balance as of September 30, 2018	$	2,249
Increases related to tax positions taken during 2019		1,042

Balance as of September 30, 2019	$	3,291

The Company does not expect a material change in unrecognized tax benefits in the next twelve months. As of September 30, 2019, no unrecognized tax benefit would, if recognized, impact the Company’s effective income tax rate.

It is the Company’s policy to include penalties and interest expense related to income taxes as a component of other expense and interest expense, respectively, as necessary. The Company’s management determined that no accrual for interest and penalties was required as of September 30, 2019 and 2018.

The Company’s tax years from 2014 through 2018 will remain open for examination by the federal and state authorities for three and four years, respectively, from the date of utilization of any net operating loss or tax credits. The Company currently has no federal or state tax examinations in progress.

On December 22, 2017, the Tax Cuts and Jobs Act of 2017, or the Tax Act, was enacted into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a federal corporate tax rate decrease from 35% to 21% for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a territorial system, and a

one-time

transition tax on the mandatory deemed repatriation of foreign earnings. For net operating losses generated in the years beginning after December 31, 2017, utilization is limited to 80% of taxable income with an unlimited carryforward period. The Company recognized the effect of the tax law changes in the period of enactment, which required a remeasurement of its U.S. deferred tax assets and liabilities. The Tax Act did not have a material impact on the Company’s financial statements due to its historical loss position and the full valuation allowance on its deferred tax assets. The Company has completed its analysis and accounting with respect to the Tax Act.

Warrants

12 Months Ended

Sep. 30, 2019

Text Block [Abstract]

Warrants

10. Warrants

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

Number of
shares
underlying
warrants

(in thousands, except share and per share data)

September 30,

2019

Issuance date

Expiration date

Exercise
price per
share

Warrant class/series:

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

Total common stock warrants

26,385


	Number of shares underlying warrants		Fair value
(in thousands, except share and per share data)	September 30, 2018				Issuance date	Expiration date	Exercise price per share
Warrant class/series:
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 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 common shares issued by the Company. In July 2019, a total of 32,064 warrants with an exercise price of $6.24 per common share were net exercised for a net 25,422 common shares issued by the Company.

In September 2019, a total of

16,221

warrants with an exercise price of $

7.84

per common share were net exercised for a net

12,019

common shares issued by the Company.

Redeemable convertible preferred stock

12 Months Ended

Sep. 30, 2019

Text Block [Abstract]

Redeemable convertible preferred stock

11. 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.

Common stock

12 Months Ended

Sep. 30, 2019

Equity [Abstract]

Common stock

12. Common stock

The fair value of the shares of common stock underlying the Company’s stock options has historically been determined by management and approved by the board of directors. Prior to the Company’s IPO, management and the board of directors determined the fair value of the common stock at the time of grant of any options by considering a number of objective and subjective factors, including valuations performed by an independent third-party specialists, valuations of comparable companies, operating and financial performance, the lack of liquidity of the common stock, recent private stock sale transactions and general and industry-specific economic outlooks. Valuations performed by third-party valuation specialists were completed and used the methodologies, approaches, and assumptions consistent with the AICPA, Accounting and Valuation Guide:

Valuation of Privately-Held-Company Equity Securities Issued as Compensation

and Company specific factors.

As of September 30, 2019, the Company reserved sufficient shares of common stock for issuance upon conversion of preferred stock and exercise of stock options and warrants. Each share of common stock is entitled to one vote. The holders of shares of common stock are also entitled to receive dividends whenever funds are legally available and when declared by the board of directors, subject to prior rights of the holders of preferred stock.

Stock option plan

12 Months Ended

Sep. 30, 2019

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

Stock option plan

13. Stock option plan

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 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 Stock 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 ended 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 year ended September 30, 2019, activity under the 2018 ESPP was immaterial.

Activity under the equity incentive plans during the years ended September 30, 2019, 2018 and 2017 is summarized below:


	Shares available			Options outstanding			Weighted average exercise price per share		Weighted average remaining contractual term (years)		Aggregate intrinsic value
Outstanding at September 30, 2016		470,623			1,033,612		$	4.93		8.81	$	1,343,301
Additional shares authorized		1,035,414			—			—
Stock options granted		(857,082	)		857,082			8.61
Stock options exercised		—			(32,586	)		5.54
Stock options forfeited		38,384			(38,384	)		5.54

Outstanding at September 30, 2017		687,339			1,819,724		$	6.63		9.14	$	7,147,115
Additional shares authorized		905,786			—			—
Stock options granted		(951,310	)		951,310			10.96
Stock options exercised		—			(62,862	)		5.37
Stock options forfeited		187,687			(187,687	)		7.73
Early exercised options repurchased		9,639			—
Forfeiture of restricted common stock		21,146			—			—

Outstanding at September 30, 2018		860,287			2,520,485		$	8.22		8.38	$	11,482,909
Additional shares authorized		2,494,700			—			—
Stock options granted		(1,685,625	)		1,685,625			25.53
Stock options exercised		—			(331,205	)		6.67
Stock options forfeited		324,460			(324,460	)		14.75
Restricted stock units granted		(500,132	)		—			—
Early exercised options repurchased		442			—			—
Forfeiture of restricted stock units		26,743			—			—

Outstanding at September 30, 2019		1,520,875			3,550,445		$	15.99		8.25	$	31,997,934

Vested or expected to vest at September 30, 2019					3,550,445		$	15.99		8.25	$	31,997,934
Vested and exercisable at September 30, 2019					1,243,634		$	7.77		7.01	$	20,125,913

As of September 30, 2019, there was $

24.8

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 3.4 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 year ended September 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		3.87		13,059,488
Restricted stock units vested		(11,019	)		24.69		—		—
Restricted stock units forfeited		(26,743	)		25.92		—		—
Outstanding at September 30, 2019		462,370			26.16		3.91		8,959,223

Expected to vest at September 30, 2019		462,370		$	26.16		3.91	$	8,959,223

As of September 30, 2019, there was $10.2 million of total unrecognized compensation cost related to these issuances that is expected to be recognized over a weighted average period of 3.99 years.

Stock-based compensation

Total stock-based compensation expense recognized was as follows:


	Year ended September 30,
(in thousands)	2019		2018		2017
Cost of revenues	$	1,345	$	376	$	202
Research and development		2,378		705		575
Selling, general and administrative		7,447		1,880		1,114

Total stock-based compensation	$	11,170	$	2,961	$	1,891

The Company uses the Black-Scholes option pricing model to calculate the grant date fair value of a stock option. The Black-Scholes model requires various assumptions, including the fair value of the Company’s common stock, expected term, expected dividend yield and expected volatility.

The expected volatility of the Company’s stock options is estimated from the historical volatility of selected public companies with comparable characteristics to it, including similarity in size and lines of business. The expected term of stock options represents the period that the Company’s stock-options are expected to be outstanding before being exercised. The risk-free interest rate is based on the implied yield currently available on U.S. treasury notes with terms approximately equal to the expected life of the option. The expected dividend rate is zero as the Company currently has no history or expectation of declaring cash dividends on the Company’s common stock.

The fair value of options granted during the years ended September 30, 2019, 2018 and 2017, respectively, were calculated using the weighted average assumptions set forth below:


	Year ended September 30,
	2019			2018			2017
Expected term (years)		6.41			6.25			6.25
Expected volatility		60.2	%		66.3	%		65.5	%
Risk-free interest rate		2.72	%		2.65	%		2.02	%
Dividend yield		0	%		0	%		0	%

Weighted average grant date fair value of options granted during the years ended September 30, 2019, 2018 and 2017 was $15.06, $7.08 and $6.63, respectively.

Shares subject to repurchase

The Company has a right of repurchase with respect to unvested shares issued upon early exercise of options at an amount equal to the original exercise price of each unvested share being repurchased. The Company’s right to repurchase these shares lapses pursuant to the vesting schedule of the original grant, which is generally 25% on the first anniversary of the original grant and ratably on a monthly basis over the remaining 36 months. As of September 30, 2019, 38,157 shares remain subject to the Company’s right of repurchase.

Net loss per share attributable to common stockholders

12 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Net loss per share attributable to common stockholders

14. 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:


	Year ended September 30,
(in thousands, except share and per share data)	2019			2018			2017
Numerator:
Net loss attributable to common stockholders	$	(107,669	)	$	(71,236	)	$	(59,310	)

Denominator:
Weighted-average shares used in computing net loss per share, basic and diluted		27,461,844			2,792,743			2,422,243

Net loss per share attributable to common stockholders, basic and diluted	$	(3.92	)	$	(25.51	)	$	(24.49	)

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


	Year ended September 30,
	2019		2018		2017
Shares subject to options to purchase common stock		3,550,445		2,520,485		1,819,724
Unvested restricted shares of common stock		23,861		96,750		513,766
Unvested restricted stock units		462,370		—		—
Unvested shares of common stock issued upon early exercise of stock options		38,157		74,142		44,698
Shares subject to employee stock purchase plan		76,335		—		—
Shares subject to warrants to purchase common stock		26,385		64,127		64,127
Shares subject to warrants to purchase redeemable convertible preferred stock		—		79,444		79,444
Shares of redeemable convertible preferred stock		—		18,951,305		14,658,940

Total		4,177,553		21,786,253		17,180,699

Geographic, product and industry information

12 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Geographic, product and industry information

15. Geographic, product and industry information

The table below sets forth revenues by geographic region, based on

ship-to

destinations. North America consists of Canada and Mexico; EMEA consists of Europe, Middle East, and Africa; and APAC consists of Japan, China, South Korea, Singapore, Malaysia and Australia.


	Year ended September 30,
(in thousands)	2019		2018		2017
United States	$	35,936	$	17,662	$	8,243
EMEA		14,692		6,557		2,023
APAC		2,761		1,001		274
North America		996		207		227

Total	$	54,385	$	25,427	$	10,767

The table below sets forth revenues by products.


	Year ended September 30,
(in thousands)	2019		2018		2017
Synthetic genes	$	26,712	$	17,986	$	8,122
Oligo pools		4,594		3,002		2,056
DNA libraries		2,036		1,771		517
NGS tools		21,043		2,668		72

Total	$	54,385	$	25,427	$	10,767

Revenues by industry were as follows:


	Year ended September 30,
(in thousands)	201 9		2018		2017
Industrial chemicals	$	21,927	$	14,912	$	6,702
Academic research		13,835		5,813		2,709
Healthcare		17,424		4,212		1,226
Agricultural		1,199		490		130

Total revenues	$	54,385	$	25,427	$	10,767

Long-lived assets located in the United States are $19.8 million and $11.9 million as of September 30, 2019 and 2018. Long-lived assets located outside of the United States were $1.0 million and $0.4 million as of September 30, 2019 and 2018.

Summary of significant accounting policies (Policies)

12 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Basis of presentation and use of estimates

Risks and uncertainties

Refer to Note 7 for discussion of our current litigation with Agilent which is set to go to trial in February 2020 and could have a material adverse effect on the Company.

Concentration of credit risk

Customer concentration

One customer accounted for more than 10% of total revenues as follows:


	Year ended September 30,
	2019			2018			2017
Customer A		17	%		34	%		40	%

One customer accounted for greater than 10% of net accounts receivable as follows:


	September 30,
	2019			2018
Customer A		13	%		27	%

Cash and cash equivalents

Short-term investments

The Company invests in various types of securities, including United States government, commercial paper, and corporate debt securities. It classifies its investments as

available-for-sale

and records them at fair value based upon market prices at period end. Unrealized gains and losses that are deemed temporary in nature are recorded in accumulated other comprehensive

income

as a separate component of stockholders’

equity (

deficit

)

Accounts receivable

re-evaluates

such allowance on a regular basis and adjusts its allowance as needed. Once a receivable is deemed to be uncollectible, such balance is charged against the allowance.

The Company has a short

order-to-invoice

lifecycle, as most products can be manufactured within one month. Upon delivery of the products to the customer, the Company invoices the customer. The typical timing of payment is net 30 days.

Fair value of financial instruments

Inventories

Inventory is stated at the lower of cost or net realizable value. Cost is determined using the

first-in,

first-out

Property and equipment


Laboratory equipment		5 Years
Furniture, fixtures and other equipment		5 Years
Computer equipment		3 Years
Computer software		3 Year s
Leasehold improvements		Lesser of useful life or facilities’ lease term.

Capitalized software development costs

Costs associated with

internal-use

software systems, including those

to improve e-commerce

three

years.

Long-lived assets

their fair value

. There have been no such impairments of long-lived assets during the years ended September 30, 2019, 2018 and 2017.

Leases

Goodwill and purchased intangible assets

Segment information

Revenue recognition

Effective October 1, 2017, the Company elected to early adopt the requirements of Accounting Standards Codification (ASC) 606,

Revenue from Contracts with Customers

For all of the Company’s contracts to date, the customer orders a specified quantity of synthetic DNA

;

Refer to Note 15 for the disaggregation of revenues by geography, by product and by industry.

Research and development

Advertising costs

Government contract payments

Redeemable convertible preferred stock warrant liability

our

Common stock warrants

Warrants to purchase the Company’s common stock issued in conjunction with debt are recorded as additional

paid-in-capital

and classified as equity on the consolidated balance sheets. During the year ended September 30, 2017, the Company recorded $0.5 million in additional

paid-in-capital

for the fair value of warrants to purchase common stock issued in connection with long-term debt. There were no common stock warrants issued during the years ended September 30, 2018 and 2019.

Recent accounting pronouncements

non-employee

consultants, and employees may participate in an employee stock purchase plan.

The Company recognizes stock compensation in accordance with ASC 718,

Compensation—Stock Compensation

The Company recognizes fair value of stock options granted to

non-employees

Net loss per share attributable to common stockholders

The Company calculates its basic and diluted net loss per share attributable to common stockholders in conformity with

the two-class method

required for companies with participating securities. In computing diluted net loss attributable to common stockholders, undistributed earnings

are re-allocated to

the two-class method

since the participating securities had no legal obligation to share in any losses.

Reverse stock split

In October 2018, the Company’s stockholders approved a

one-for-0.101

Income taxes

Deferred offering costs

non-current

assets on the consolidated balance sheets.

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

right-of-use

The Company estimates the key change upon adoption of the standard will result in balance sheet recognition of additional lease assets and lease liabilities as of October 1, 2019, which

ll be

based on the present value of committed lease payments

which the Company expects to be consistent with the future minimum lease payments disclosed in Note 7

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, 20

In August 2016, the FASB issued ASU

2016-15,

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

zero-coupon

of ASU 2016-15 did

not have an impact on the Company’s consolidated financial statements for either period presented.

In November 2016, the FASB issued ASU

2016-18,

Statement of Cash Flows (Topic 230): Restricted Cash

beginning-of-period

and

end-of-period

non-current


	September 30,
	2019		2018		2017
Cash and cash equivalents		46,735		80,757		31,227
Restricted cash, non-current		579		579		202
Restricted cash, current (within prepaid expenses and other current assets)		84		201		144

Total cash, cash equivalents and restricted cash		47,398		81,537		31,573

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

, 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,

of ASU 2017-09 did

not have an impact on the Company’s 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

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.

Summary of significant accounting policies (Tables)

12 Months Ended

Sep. 30, 2019

Schedule Of Estimated Lives of Property And Equipment

Estimated lives of property and equipment are as follows:


Laboratory equipment		5 Years
Furniture, fixtures and other equipment		5 Years
Computer equipment		3 Years
Computer software		3 Year s
Leasehold improvements		Lesser of useful life or facilities’ lease term.

Summary of Cash, Cash Equivalents and Restricted Cash


	September 30,
	2019		2018		2017
Cash and cash equivalents		46,735		80,757		31,227
Restricted cash, non-current		579		579		202
Restricted cash, current (within prepaid expenses and other current assets)		84		201		144

Total cash, cash equivalents and restricted cash		47,398		81,537		31,573

Sales Revenue, Net [Member]

Schedule of concentration of risk

One customer accounted for more than 10% of total revenues as follows:


	Year ended September 30,
	2019			2018			2017
Customer A		17	%		34	%		40	%

Accounts Receivable [Member]

Schedule of concentration of risk

One customer accounted for greater than 10% of net accounts receivable as follows:


	September 30,
	2019			2018
Customer A		13	%		27	%

Fair value measurement (Tables)

12 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Cash And Cash Equivalents And Available For Sale Securities At Fair Value

The following table sets forth the cash and cash equivalents, and short-term investments as of September 30, 2019:


(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Cash and cash equivalents	$	46,735	$	—	$	—	$	46,735
Short-term investments		91,323		49		—		91,372

Total	$	138,058	$	49	$	—	$	138,107

The following table sets forth the cash and cash equivalents as of September 30, 2018:


(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Cash and cash equivalents	$	80,757	$	—	$	—	$	80,757

Total	$	80,757	$	—	$	—	$	80,757

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

As of September 30, 2019, financial assets and liabilities measured and recognized at fair value are as follows:


(in thousands)	Level 1		Level 2		Level 3		Fair value
Assets
Cash and cash equivalents	$	19,344	$	—	$	—	$	19,344
Money market funds		27,390		—		—		27,390
Corporate bonds		—		8,530		—		8,530
Commercial paper		—		28,361		—		28,361
U.S. government treasury bills		54,482		—		—		54,482

Total	$	101,216	$	36,891	$	—	$	138,107

As of September 30, 2018, financial assets and liabilities measured and recognized at fair value are as follows:


(in thousands)	Level 1		Level 2		Level 3		Fair value
Assets
Cash and cash equivalents	$	46,823	$	—	$	—	$	46,823
Money market funds		33,934		—		—		33,934

Total	$	80,757	$	—	$	—	$	80,757

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

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

The following table provides a reconciliation of beginning and ending balances of the Level 3 instruments during the years ended September 30, 2017, 2018 and 2019:


(in thousands)	Series A			Series B			Series C			Series D			Total
Redeemable convertible preferred stock warrant liability:
Fair value as of September 30, 2016	$	184		$	57		$	108		$	34		$	383
Change in fair value recorded in other income (expense), net		147			53			44			17			261

Fair value as of September 30, 2017	$	331		$	110		$	152		$	51		$	644
Change in fair value recorded in other income (expense), net		34			(16	)		(22	)		(9	)		(13	)

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 September 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.

Balance Sheet Related Disclosures [Abstract]

Balance sheet components (Tables)

12 Months Ended

Sep. 30, 2019

Schedule Of Accounts Notes Loans And Financing Receivable

The Company’s accounts receivable, net balance consists of the following:


	September 30,
(in thousands)	2019			2018
Trade Receivables	$	11,085		$	5,439
Other Receivables		1,313			75
Allowance for Doubtful Accounts		(294	)		(95	)

Accounts Receivable, net	$	12,104		$	5,419

Summary of Inventory

Inventories consist of the following:


	September 30,
(in thousands)	2019		2018
Raw Materials	$	4,900	$	2,988
Work-in-process		1,157		2,273
Finished Goods		1,273		767

	$	7,330	$	6,028

Schedule Of Property Plant And Equipment

Property and Equipment, net consists of the following:


	September 30,
(in thousands)	2019			2018
Laboratory equipment	$	26,021		$	18,865
Furniture, fixtures and other equipment		1,760			613
Computer equipment		2,777			2,137
Computer software		3,507			3,094
Leasehold improvements		3,772			3,340
Construction in progress		5,991			1,534

		43,828			29,583
Less: Accumulated depreciation and amortization		(22,993	)		(17,252	)

	$	20,835		$	12,331

Goodwill and intangible assets (Tables)

12 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Intangible Assets Balances

The intangible assets balances are presented below:


	September 30, 2019
(in thousands, except for years)	Useful lives in years		Gross carrying amount		Accumulated amortization			Net book value
Developed Technology		6	$	1,220	$	(712	)	$	508
Tradenames & Trademarks		2		20		(20	)		—

Total indefinite-lived intangible assets			$	1,240	$	(732	)	$	508


	September 30, 2018
(in thousands, except for years)	Useful lives 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

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Future annual amortization expense is as follows (in thousands):


Years ending September 30,
2020		203
2021		203
202 2		102
	$	508

Long-term debt (Tables)

12 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Schedule Of Maturities Of Long Term Debt

Future maturities of the Fourth Loan as of September 30, 2019 are as follows:


(in thousands)	Principal		Interest		Total
Years ending September 30,
2020	$	3,333		486	$	3,819
2021		3,333		214		3,547
2022		834		11		845

		7,500		711		8,211
Less: Interest						(711	)

Total amount of loan principal						7,500
Less unamortized debt discount						(269	)
Add: accretion of final payment fee						502

					$	7,733

Commitments and contingencies (Tables)

12 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases

Future minimum lease payments under all

non-cancelable

operating leases as of September 30, 2019 are as follows:


(in thousands)	Operating leases
Years ending September 30 :
2020	$	6,671
2021		5,909
2022		5,979
2023		6,064
2024		6,029
Thereafter		10,067

Total minimum lease payments	$	40,719

Income taxes (Tables)

12 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Schedule of Deferred Tax Assets and Liabilities

The significant components of the Company’s deferred tax assets and liabilities are as follows:


	September 30,
(in thousands)	2019			2018
Net operating loss carryforwards	$	73,341		$	49,801
Research and development credit carryforwards		6,831			4,621
Other		4,553			1,919

Gross deferred tax assets		84,725			56,341
Less: Valuation allowance		(84,598	)		(56,158	)

Net deferred tax assets		127			183
Fixed assets		(1	)		(1	)
Intangible assets		(126	)		(182	)

Gross deferred tax liabilities		(127	)		(183	)

Total net deferred tax asset	$	—		$	—

Schedule of Effective Income Tax Rate Reconciliation

The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate:


	Year ended September 30,
	2019			2018			2017
Tax expense computed at the federal statutory rate		21	%		24	%		35	%
Change in valuation allowance		(22	)%		4	%		(35	)%
Research and development credit benefit		1	%		1	%		1	%
Change in federal tax rate		—			(28	)%		—
Other expenses		—			(1	)%		(1	)%

Total income tax expense		—	%		—	%		—	%

Schedule of Unrecognized Tax Benefits Roll Forward

The aggregate changes in the balance of gross unrecognized tax benefits are as follows:


(in thousands)	Federal and state
Balance as of September 30, 2016		822
Increases related to tax positions taken during 2017		562
Increases related to tax positions in prior years		241

Balance as of September 30, 2017		1,625
Increases related to tax positions taken during 2018		624

Balance as of September 30, 2018	$	2,249
Increases related to tax positions taken during 2019		1,042

Balance as of September 30, 2019	$	3,291

Warrants (Tables)

12 Months Ended

Sep. 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

Warrant class/series:

September 30,

2019

Issuance date

Expiration date

Exercise
price per
share

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

Total common stock warrants

26,385


(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

Stock option plan (Tables)

12 Months Ended

Sep. 30, 2019

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

Activity Under The Equity Incentive Plans

Activity under the equity incentive plans during the years ended September 30, 2019, 2018 and 2017 is summarized below:


	Shares available			Options outstanding			Weighted average exercise price per share		Weighted average remaining contractual term (years)		Aggregate intrinsic value
Outstanding at September 30, 2016		470,623			1,033,612		$	4.93		8.81	$	1,343,301
Additional shares authorized		1,035,414			—			—
Stock options granted		(857,082	)		857,082			8.61
Stock options exercised		—			(32,586	)		5.54
Stock options forfeited		38,384			(38,384	)		5.54

Outstanding at September 30, 2017		687,339			1,819,724		$	6.63		9.14	$	7,147,115
Additional shares authorized		905,786			—			—
Stock options granted		(951,310	)		951,310			10.96
Stock options exercised		—			(62,862	)		5.37
Stock options forfeited		187,687			(187,687	)		7.73
Early exercised options repurchased		9,639			—
Forfeiture of restricted common stock		21,146			—			—

Outstanding at September 30, 2018		860,287			2,520,485		$	8.22		8.38	$	11,482,909
Additional shares authorized		2,494,700			—			—
Stock options granted		(1,685,625	)		1,685,625			25.53
Stock options exercised		—			(331,205	)		6.67
Stock options forfeited		324,460			(324,460	)		14.75
Restricted stock units granted		(500,132	)		—			—
Early exercised options repurchased		442			—			—
Forfeiture of restricted stock units		26,743			—			—

Outstanding at September 30, 2019		1,520,875			3,550,445		$	15.99		8.25	$	31,997,934

Vested or expected to vest at September 30, 2019					3,550,445		$	15.99		8.25	$	31,997,934
Vested and exercisable at September 30, 2019					1,243,634		$	7.77		7.01	$	20,125,913

Schedule of Nonvested Restricted Stock Units Activity

Activity with respect to the Company’s restricted stock units during the year ended September 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		3.87		13,059,488
Restricted stock units vested		(11,019	)		24.69		—		—
Restricted stock units forfeited		(26,743	)		25.92		—		—
Outstanding at September 30, 2019		462,370			26.16		3.91		8,959,223

Expected to vest at September 30, 2019		462,370			26.16		3.91		8,959,223

Total Stock-based Compensation Expense

Total stock-based compensation expense recognized was as follows:


	Year ended September 30,
(in thousands)	2019		2018		2017
Cost of revenues	$	1,345	$	376	$	202
Research and development		2,378		705		575
Selling, general and administrative		7,447		1,880		1,114

Total stock-based compensation	$	11,170	$	2,961	$	1,891

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

The fair value of options granted during the years ended September 30, 2019, 2018 and 2017, respectively, were calculated using the weighted average assumptions set forth below:


	Year ended September 30,
	2019			2018			2017
Expected term (years)		6.41			6.25			6.25
Expected volatility		60.2	%		66.3	%		65.5	%
Risk-free interest rate		2.72	%		2.65	%		2.02	%
Dividend yield		0	%		0	%		0	%

Net loss per share attributable to common stockholders (Tables)

12 Months Ended

Sep. 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:


	Year ended September 30,
(in thousands, except share and per share data)	2019			2018			2017
Numerator:
Net loss attributable to common stockholders	$	(107,669	)	$	(71,236	)	$	(59,310	)

Denominator:
Weighted-average shares used in computing net loss per share, basic and diluted		27,461,844			2,792,743			2,422,243

Net loss per share attributable to common stockholders, basic and diluted	$	(3.92	)	$	(25.51	)	$	(24.49	)

Summary of Calculation of Diluted Net Loss Per Share


	Year ended September 30,
	2019		2018		2017
Shares subject to options to purchase common stock		3,550,445		2,520,485		1,819,724
Unvested restricted shares of common stock		23,861		96,750		513,766
Unvested restricted stock units		462,370		—		—
Unvested shares of common stock issued upon early exercise of stock options		38,157		74,142		44,698
Shares subject to employee stock purchase plan		76,335		—		—
Shares subject to warrants to purchase common stock		26,385		64,127		64,127
Shares subject to warrants to purchase redeemable convertible preferred stock		—		79,444		79,444
Shares of redeemable convertible preferred stock		—		18,951,305		14,658,940

Total		4,177,553		21,786,253		17,180,699

Geographic, product and industry information (Tables)

12 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Summary of Revenue by Geographic Region

The table below sets forth revenues by geographic region, based on

ship-to

destinations. North America consists of Canada and Mexico; EMEA consists of Europe, Middle East, and Africa; and APAC consists of Japan, China, South Korea, Singapore, Malaysia and Australia.


	Year ended September 30,
(in thousands)	2019		2018		2017
United States	$	35,936	$	17,662	$	8,243
EMEA		14,692		6,557		2,023
APAC		2,761		1,001		274
North America		996		207		227

Total	$	54,385	$	25,427	$	10,767

Summary of Revenue by Product

The table below sets forth revenues by products.


	Year ended September 30,
(in thousands)	2019		2018		2017
Synthetic genes	$	26,712	$	17,986	$	8,122
Oligo pools		4,594		3,002		2,056
DNA libraries		2,036		1,771		517
NGS tools		21,043		2,668		72

Total	$	54,385	$	25,427	$	10,767

Summary of Revenue by Industry

Revenues by industry were as follows:


	Year ended September 30,
(in thousands)	201 9		2018		2017
Industrial chemicals	$	21,927	$	14,912	$	6,702
Academic research		13,835		5,813		2,709
Healthcare		17,424		4,212		1,226
Agricultural		1,199		490		130

Total revenues	$	54,385	$	25,427	$	10,767

The company - Additional Information (Detail) - USD ($) $ in Thousands, shares in Millions	1 Months Ended
	May 31, 2019	Oct. 31, 2018	Apr. 30, 2016	Sep. 30, 2019	Sep. 30, 2018
Accumulated deficit				$ (318,524)	$ (210,855)
Proceeds of underwritten public offering common stock	$ 84,300
Genome Compiler Corporation [Member]
Shares issued in acquisition			0.4
IPO [Member]
Proceeds of underwritten public offering common stock		$ 69,600

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands, shares in Millions	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Deferred offering costs included in non-current assets		$ 3,700
Credit period granted to customers	30 days
Depreciation and amortization expense	$ 6,100	5,500	$ 4,800
Capitalised software development costs	2,300	1,900
Impairment of long lived assets	0	0		$ 0
Contract assets	0	0
Contract liabilities	0	0
Advertising and promotion expenses	$ 1,300	$ 900	100
Contract payments research and development received			0
Adjustment to additional paid in capital warrants issued			$ 486
Common stock warrants issued	0	0
Defense Advanced Research Project Agency [Member]
Contract payments research and development received	$ 500	$ 300
Software and Software Development Costs [Member]
Capitalised sofware developed useful life	3 years

Summary of significant accounting policies - Schedule Of Estimated Lives of Property And Equipment (Detail)	12 Months Ended
	Sep. 30, 2019
Laboratory equipment
Property, Plant and Equipment, Useful Life	5 years
Furniture, fixtures and other equipment
Property, Plant and Equipment, Useful Life	5 years
Computer equipment
Property, Plant and Equipment, Useful Life	3 years
Computer software
Property, Plant and Equipment, Useful Life	3 years
Leasehold improvements
Property, Plant and Equipment, Estimated Useful Lives	Lesser of useful life or<br/>facilities’ lease term.

Summary of significant accounting policies - Schedule of concentration of risk (Detail) - Customer A [Member] - Customer Concentration Risk [Member]	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Sales Revenue, Net [Member]
Concentration Risk, Percentage	17.00%	34.00%	40.00%
Accounts Receivable [Member]
Concentration Risk, Percentage	13.00%	27.00%

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

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

^[1]

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

Cash and cash equivalents

$ 46,735

$ 80,757

$ 31,227

Restricted cash, non-current

579

202

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

201

144

Total cash, cash equivalents and restricted cash

$ 47,398

$ 81,537

^[1]

$ 31,573

^[1]

$ 29,062

[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 - Cash And Cash Equivalents And Available For Sale Securities At Fair Value (Detail) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Cash And Cash Equivalents At Amortized Cost	$ 46,735	$ 80,757
Available-for-sale Securities, Amortized Cost Basis	91,323
Cash And Cash Equivalents And Short Term Invesmtnets Amortized Cost	138,058	80,757
Available-for-sale Securities, Gross Unrealized Gain	49
Available for sale Securities Gross Unrealized Gain Loss	49
Cash and Cash Equivalents, at Carrying Value	46,735	80,757	$ 31,227
Short-term Investments	91,372
Cash, Cash Equivalents, and Short-term Investments	$ 138,107	$ 80,757

Fair Value Measurement - Summary of Company's Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Assets
Assets, Totals	$ 138,107	$ 80,757
Corporate bonds [Member]
Assets
Assets, Totals	8,530
Commercial Paper [Member]
Assets
Assets, Totals	28,361
US Government Treasury Bills [Member]
Assets
Assets, Totals	54,482
Redeemable Convertible Preferred Stock Warrant Liability [Member]
Liabilities
Redeemable convertible preferred stock warrant liability		631
Cash [Member]
Assets
Assets, Totals	19,344	46,823
Money Market Funds [Member]
Assets
Assets, Totals	27,390	33,934
Fair Value, Inputs, Level 1 [Member]
Assets
Assets, Totals	101,216	80,757
Fair Value, Inputs, Level 1 [Member] \| US Government Treasury Bills [Member]
Assets
Assets, Totals	54,482
Fair Value, Inputs, Level 1 [Member] \| Cash [Member]
Assets
Assets, Totals	19,344	46,823
Fair Value, Inputs, Level 1 [Member] \| Money Market Funds [Member]
Assets
Assets, Totals	27,390	33,934
Fair Value, Inputs, Level 2 [Member]
Assets
Assets, Totals	36,891
Fair Value, Inputs, Level 2 [Member] \| Corporate bonds [Member]
Assets
Assets, Totals	8,530
Fair Value, Inputs, Level 2 [Member] \| Commercial Paper [Member]
Assets
Assets, Totals	$ 28,361
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	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value, beginning balance	$ 631	$ 644	$ 383
Conversion of redeemable convertible preferred stock warrants to common stock warrants	(631)
Change in fair value recorded in other income (expense), net		(13)	261
Fair value, ending balance		631	644
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	184
Conversion of redeemable convertible preferred stock warrants to common stock warrants	(365)
Change in fair value recorded in other income (expense), net		34	147
Fair value, ending balance		365	331
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	57
Conversion of redeemable convertible preferred stock warrants to common stock warrants	(94)
Change in fair value recorded in other income (expense), net		(16)	53
Fair value, ending balance		94	110
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	108
Conversion of redeemable convertible preferred stock warrants to common stock warrants	(130)
Change in fair value recorded in other income (expense), net		(22)	44
Fair value, ending balance		130	152
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	34
Conversion of redeemable convertible preferred stock warrants to common stock warrants	(42)
Change in fair value recorded in other income (expense), net		(9)	17
Fair value, ending balance		$ 42	$ 51

Balance sheet components - Schedule Of Accounts Notes Loans And Financing Receivable (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Trade Receivables	$ 11,085	$ 5,439
Other Receivables	1,313	75
Allowance for Doubtful Accounts	(294)	(95)
Accounts receivable, net	$ 12,104	$ 5,419

Balance sheet components - Summary of Inventory (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Balance Sheet Related Disclosures [Abstract]
Raw Materials	$ 4,900	$ 2,988
Work-in-process	1,157	2,273
Finished Goods	1,273	767
Total inventories	$ 7,330	$ 6,028

Balance sheet components - Schedule Of Property Plant And Equipment (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 43,828	$ 29,583
Less: Accumulated depreciation and amortization	(22,993)	(17,252)
Property, Plant and Equipment, Net	20,835	12,331
Laboratory equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	26,021	18,865
Furniture, fixtures and other equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	1,760	613
Computer equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	2,777	2,137
Computer software
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	3,507	3,094
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	3,772	3,340
Construction in progress
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 5,991	$ 1,534

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
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	$ 200,000	$ 200,000	$ 200,000

Goodwill and Intangible Assets - Summary of Intangible Assets Balances (Detail) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 1,240	$ 1,240
Accumulated amortization	(732)	(528)
Net book value	$ 508	$ 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	(712)	(508)
Net book value	$ 508	$ 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)

Goodwill and Intangible Assets - Schedule of Finite Lived Intangible Assets Future Amortization Expense (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
2020	$ 203
2021	203
2022	102
Net book value	$ 508	$ 712

Long-term debt - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Thousands

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2019

Jul. 31, 2019

Exercise Price Of Warrants

$ 7.84

$ 6.24

Fourth Amended and Restated Loan and Security Agreement [Member]

^[1]

$ 2,174

Debt instrument fee amount

$ 700

SVB [Member] | Prime Rate [Member]

Debt instrument variable interest rate spread

3.00%

SVB [Member] | Revolving Credit Facility [Member]

Proceeds from long term line of credit

$ 10,000

SVB [Member] | Revolving Credit Facility [Member] | Floating Interest Rate [Member]

Debt instrument variable interest rate spread

1.00%

Debt Periodic Payment

principal amount outstanding under the revolving line would accrue interest at a floating per annum rate equal to one percentage point (1.00%) above the prime rate, which interest shall be payable monthly.

SVB [Member] | Fourth Amended and Restated Loan and Security Agreement [Member]

Exercise Price Of Warrants

$ 20,000

$ 6.24

Debt instrument term

51 months

SVB [Member] | Fourth Amended and Restated Loan and Security Agreement [Member] | Prime Rate [Member]

Debt instrument description of interest rate

interest rate of prime plus 3.00%

SVB [Member] | Tranche One [Member] | Fourth Amended and Restated Loan and Security Agreement [Member]

Warrants To Purchase Common Stock

$ 10,000

64,127

SVB [Member] | Tranche Two [Member] | Fourth Amended and Restated Loan and Security Agreement [Member]

$ 10,000

SVB [Member] | Tranche Three [Member] | Fourth Amended and Restated Loan and Security Agreement [Member]

5,000

Debt Instrument Maturity

Jan. 31, 2018

SVB [Member] | Prior Loan Refinance | Tranche One [Member] | Fourth Amended and Restated Loan and Security Agreement [Member]

5,000

Debt Instrument Maturity

Jun. 30, 2018

SVB [Member] | New Advance | Tranche One [Member] | Fourth Amended and Restated Loan and Security Agreement [Member]

7,800

$ 2,200

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

Long-term debt - Schedule Of Maturities Of Long Term Debt (Detail) $ in Thousands	Sep. 30, 2019 USD ($)
Debt Instrument [Line Items]
2020	$ 3,333
2021	3,333
2022	834
Long-term Debt	7,500
2020	486
2021	214
2022	11
Interest Payable On Long Term Debt	711
2020	3,819
2021	3,547
2022	845
Long Term Debt Maturities Repayment Principal And Interest Total	8,211
Less: Interest	711
Long-term Debt	7,500
Less unamortized debt discount	(269)
Add: accretion of final payment fee	502
Long Term Debt Including Interest And Fee Payable	7,733
Accrued Expenses [Member]
Debt Instrument [Line Items]
Interest Payable On Long Term Debt	(711)
Less: Interest	$ (711)

Commitments and contingencies - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Operating lease rental expenses	$ 4.9	$ 2.5	$ 2.2
Property Subject to Operating Lease [Member]
Operating lease prepaid rent	1.6	0.0
Operating lease deferred rent	$ 0.0	$ 0.1

Commitments and contingencies - Schedule Of Future Minimum Rental Payments For Operating Leases (Detail) $ in Thousands	Sep. 30, 2019 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2020	$ 6,671
2021	5,909
2022	5,979
2023	6,064
2024	6,029
Thereafter	10,067
Total minimum lease payments	$ 40,719

Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Raw materials purchased from related party investor	$ 3.2	$ 2.3	$ 2.0
Description of related party transactions	During the year ended September 30, 2019, the Company purchased raw materials from a related party investor in the amount of $3.2 million. Payable balances and cash receipts and receivable balances with the related party were immaterial as of September 30, 2019.	During the year ended September 30, 2018, the Company purchased raw materials from a related party investor in the amount of $2.3 million. Payable balances and cash receipts and receivable balances with the related party were immaterial as of September 30, 2018.
Series D Redeemable Convertible Preferred Stock [Member]
Temporary equity issued	0	10,326,454	170,085

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.

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Provision for income taxes	$ 292	$ 242	$ 280
Expiration year	2033
Effective Income Tax Rate	21.00%	24.00%	35.00%
Limitation description	For net operating losses generated in the years beginning after December 31, 2017, utilization is limited to 80% of taxable income with an unlimited carryforward period.
Tax credit carryforward, limitations on use	For net operating losses generated in the years beginning after December 31, 2017, utilization is limited to 80% of taxable income with an immaterial provision for income taxesunlimited carryforward period. The Company recognized the effect of the tax law changes in the period of enactment, which required a remeasurement of its U.S. deferred tax assets and liabilities
Tax Year 2018 [Member]
Effective Income Tax Rate		35.00%
Tax Year 2019 [Member]
Effective Income Tax Rate	21.00%
Domestic Tax Authority [Member]
Operating loss carry forwards	$ 293,600
Domestic Tax Authority [Member] \| Research Tax Credit Carryforward [Member]
Tax credit carry forwards	5,700
State and Local Jurisdiction [Member]
Operating loss carry forwards	183,400
State and Local Jurisdiction [Member] \| Research Tax Credit Carryforward [Member]
Tax credit carry forwards	$ 5,100

Income taxes - Schedule Of Deferred Tax Assets And Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Net operating loss carryforwards	$ 73,341	$ 49,801
Research and development credit carryforwards	6,831	4,621
Other	4,553	1,919
Gross deferred tax assets	84,725	56,341
Less: Valuation allowance	(84,598)	(56,158)
Net deferred tax assets	127	183
Fixed assets	(1)	(1)
Intangible assets	(126)	(182)
Gross deferred tax liabilities	(127)	(183)
Total net deferred tax asset

Income taxes - Schedule Of Effective Income Tax Rate Reconciliation (Detail)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Tax expense computed at the federal statutory rate	21.00%	24.00%	35.00%
Change in valuation allowance	(22.00%)	4.00%	(35.00%)
Research and development credit benefit	1.00%	1.00%	1.00%
Change in federal tax rate		(28.00%)
Other expenses		(1.00%)	(1.00%)
Total income tax expense

Income taxes - Schedule Of Unrecognized Tax Benefits Roll Forward (Detail) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Balance	$ 2,249	$ 1,625	$ 822
Increases related to tax positions during the year	1,042	624	562
Increases related to tax positions in prior years			241
Balance	$ 3,291	$ 2,249	$ 1,625

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

12 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2017

Jul. 31, 2019

Nov. 30, 2018

^[1]

$ (13)

$ 261

$ 7.84

$ 6.24

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]

26,385

64,127

$ 486

Sep. 06, 2017

Sep. 06, 2027

Common Stock [Member] | Warrants One [Member]

$ 6.24

18,854

Dec. 22, 2015

Dec. 22, 2025

Common Stock [Member] | Warrants Two [Member]

$ 14.85

7,531

Mar. 28, 2016

Mar. 28, 2026

$ 21.24

[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) - $ / shares	1 Months Ended
Warrants - Additional Information (Detail) - $ / shares	Sep. 30, 2019	Jul. 31, 2019	Nov. 30, 2018
Class of Warrant or Right [Line Items]
Net exercise of stock warrants	16,221	32,064	68,901
Exercise price per share	$ 7.84	$ 6.24
Common stock issued for cashless exercise	12,019	25,422	57,122
Warrants One [Member]
Class of Warrant or Right [Line Items]
Number of shares underlying warrants			36,838
Exercise price per share			$ 3.26
Warrants Two [Member]
Class of Warrant or Right [Line Items]
Number of shares underlying warrants			32,063
Exercise price per share			$ 6.24

Stock option plan - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions		12 Months Ended
	Sep. 26, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, stock options		$ 24.8
Unrecognized stock-based compensation expense, period for recognition		3 years 4 months 24 days
Options Grant date fair value		$ 15.06	$ 7.08	$ 6.63
Vesting Rights Percentage		25.00%
Shares subject to right of repurchase		38,157
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		$ 10.2
Unrecognized stock-based compensation expense, period for recognition		3 years 11 months 26 days

Stock option plan - Activity Under The Equity Incentive Plans (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Shares available, Outstanding Beginning Balance	860,287	687,339	470,623
Shares available, Additional shares authorized	2,494,700	905,786	1,035,414
Shares available, Stock options granted	(1,685,625)	(951,310)	(857,082)
Shares available, Stock options forfeited	324,460	187,687	38,384
Shares available, Restricted stock units granted	(500,132)
Shares available, Early exercised options repurchased	442	9,639
Shares available, Forfeiture of restricted stock units	26,743	21,146
Shares available, Outstanding Ending Balance	1,520,875	860,287	687,339	470,623
Number of options, Outstanding beginning balance	2,520,485	1,819,724	1,033,612
Options outstanding, Stock options granted	1,685,625	951,310	857,082
Options outstanding, Stock options exercised	(331,205)	(62,862)	(32,586)
Options outstanding, Stock options forfeited	(324,460)	(187,687)	(38,384)
Number of options, Outstanding ending balance	3,550,445	2,520,485	1,819,724	1,033,612
Weighted average exercise price per share, Outstanding Beginning Balance	$ 8.22	$ 6.63	$ 4.93
Weighted average exercise price per share, Stock options granted	25.53	10.96	8.61
Weighted average exercise price per share, Stock options exercised	6.67	5.37	5.54
Weighted average exercise price per share, Stock options forfeited	14.75	7.73	5.54
Weighted average exercise price per share, Outstanding Ending Balance	$ 15.99	$ 8.22	$ 6.63	$ 4.93
Weighted average remaining contractual term, Outstanding	8 years 3 months	8 years 4 months 17 days	9 years 1 month 20 days	8 years 9 months 21 days
Aggregate intrinsic value, Outstanding			$ 1,343,301
Aggregate intrinsic value, Outstanding Vested or expected to vest and exercisable	$ 31,997,934	$ 11,482,909	$ 7,147,115
Options outstanding, Vested or expected to vest	3,550,445
Weighted average exercise price per share, Vested or expected to vest	$ 15.99
Weighted average remaining contractual term, Vested or expected to vest	8 years 3 months
Aggregate intrinsic value, Vested or expected to vest	$ 31,997,934
Options outstanding, Vested and exercisable	1,243,634
Weighted average exercise price per share, Vested and exercisable	$ 7.77
Weighted average remaining contractual term,Vested and exercisable	7 years 3 days
Aggregate intrinsic value, Vested and exercisable	$ 20,125,913

Stock option plan - Schedule of Nonvested Restricted Stock Units Activity (Detail) $ / shares in Units, $ in Thousands	12 Months Ended
	Sep. 30, 2019 USD ($) $ / shares shares
Nonvested Restricted Stock Units Activity [Line Items]
Weighted average grant date fair value price per share, Expected to vest \| $ / shares	$ 26.16
Restricted Stock Units (RSUs) [Member]
Nonvested Restricted Stock Units Activity [Line Items]
Number of shares, granted \| shares	500,132
Number of shares, vested \| shares	(11,019)
Number of shares, forfeited \| shares	(26,743)
Number of shares, Outstanding Ending Balance \| shares	462,370
Expected to vest, Outstanding \| shares	462,370
Weighted average grant date fair value price per share, granted \| $ / shares	$ 26.12
Weighted average grant date fair value price per share, vested \| $ / shares	24.69
Weighted average grant date fair value price per share, forfeited \| $ / shares	25.92
Weighted average grant date fair value price per share, Outstanding Ending Balance \| $ / shares	$ 26.16
Weighted average remaining contractual term, granted	3 years 10 months 13 days
Weighted average remaining contractual term, Expected to vest	3 years 10 months 27 days
Aggregate intrinsic value, Granted \| $	$ 13,059,488
Aggregate intrinsic value, Outstanding \| $	8,959,223
Aggregate intrinsic value, Expected to vest \| $	$ 8,959,223

Stock option plan - Total Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 11,170	$ 2,961	$ 1,891
Cost of Revenues [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	1,345	376	202
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	2,378	705	575
Selling, General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 7,447	$ 1,880	$ 1,114

Stock option plan - Schedule of Share Based Payment Award Stock Options Valuation Assumptions (Detail)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected term (years)	6 years 4 months 27 days	6 years 3 months	6 years 3 months
Expected volatility	60.20%	66.30%	65.50%
Risk-free interest rate	2.72%	2.65%	2.02%
Dividend yield	0.00%	0.00%	0.00%

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	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Numerator:
Net loss attributable to common stockholders	$ (107,669)	$ (71,236)	$ (59,310)
Denominator:
Weighted-average shares used in computing net loss per share attributable to common stockholders—basic and diluted	27,461,844	2,792,743	2,422,243
Net loss per share attributable to common stockholders, basic and diluted	$ (3.92)	$ (25.51)	$ (24.49)

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