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Inventory - Summary of Inventory (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Inventory, Net [Abstract]
Raw Materials	$ 5,248	$ 4,900
Work-in-process	1,300	1,157
Finished Goods	868	1,273
Total inventories	$ 7,416	$ 7,330

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Current assets
Cash and cash equivalents	$ 26,032	$ 46,735
Short-term investments	77,075	91,372
Accounts receivable, net	13,054	12,104
Inventories	7,416	7,330
Prepaid expenses and other current assets	5,711	2,594
Total current assets	129,288	160,135
Property and equipment, net	21,339	20,835
Operating lease right-of-use assets	37,238
Goodwill	1,138	1,138
Intangible assets, net	458	508
Restricted cash, non-current	579	579
Other non-current assets	2,237	3,799
Total assets	192,277	186,994
Current liabilities
Accounts payable	9,106	9,760
Accrued expenses	4,687	5,965
Accrued compensation	8,848	10,479
Accrued litigation settlement	22,500
Current portion of operating lease liabilities	8,371
Current portion of long-term debt	3,333	3,333
Other current liabilities	999	817
Total current liabilities	57,844	30,354
Operating lease liabilities, net of current portion	27,539
Long-term debt, net of current portion	3,669	4,400
Other non-current liabilities	144	158
Total liabilities	89,196	34,912
Commitments and contingencies (Note 6)
Stockholders' equity
Preferred stock, $0.00001 par value—10,000,000 shares authorized; no shares issued or outstanding
Common stock, $0.00001 par value—100,000,000 shares authorized; 33,260,761 and 32,872,675 shares issued and outstanding as of as of December 31, 2019 and September 30, 2019, respectively.
Additional paid-in capital	477,053	470,425
Accumulated other comprehensive income	190	181
Accumulated deficit	(374,162)	(318,524)
Total stockholders' equity	103,081	152,082
Total liabilities and stockholders' equity	$ 192,277	$ 186,994

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Series A Redeemable Convertible Preferred Stock [Member]	Series B Redeemable Convertible Preferred Stock [Member]	Series C Redeemable Convertible Preferred Stock [Member]	Series D Redeemable Convertible Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income [Member]	Accumulated deficit [Member]
Beginning Balance at Sep. 30, 2018		$ 9,141	$ 25,900	$ 36,726	$ 218,716
Beginning Balance , shares at Sep. 30, 2018		2,817,723	3,315,645	2,491,483	10,326,454
Conversion of redeemable convertible preferred stock to common stock		$ (9,141)	$ (25,900)	$ (36,726)	$ (218,716)
Conversion of redeemable convertible preferred stock to common stock, shares		(2,817,723)	(3,315,645)	(2,491,483)	(10,326,454)
Ending Balance at Dec. 31, 2018	$ 0	$ 0	$ 0		$ 0
Ending Balance , shares at Dec. 31, 2018		0	0	0	0
Beginning Balance at Sep. 30, 2018	(201,422)						$ 9,346	$ 87	$ (210,855)
Beginning Balance , shares at Sep. 30, 2018						3,206,048
Issuance of common stock in public offering	69,597						69,597
Issuance of common stock in public offering, shares						5,750,000
Exercise of stock options	166						166
Exercise of stock options , shares						48,841
Conversion of redeemable convertible preferred stock warrant liability to equity	631						631
Conversion of redeemable convertible preferred stock to common stock	290,462						290,462
Conversion of redeemable convertible preferred stock to common stock , shares						18,951,305
Repurchases of early exercised stock options, shares						(442)
Stock-based compensation	1,864						1,864
Net exercise of stock warrants , shares						57,122
Other comprehensive income	(63)							(63)
Net loss	(22,639)								(22,639)
Ending Balance at Dec. 31, 2018	138,596						372,066	24	(233,494)
Ending Balance , shares at Dec. 31, 2018						28,012,874
Beginning Balance at Sep. 30, 2019	152,082						470,425	181	(318,524)
Beginning Balance , shares at Sep. 30, 2019						32,872,675
Issuance of common stock in public offering	2,024						$ 2,024
Issuance of common stock in public offering, shares						96,827
Vesting of restricted stock units, shares							84,565
Exercise of stock options	1,715						$ 1,715
Exercise of stock options , shares						242,382
Repurchases of early exercised stock options, shares						(896)
Repurchases of common stock for income tax withholding , shares						(34,792)
Repurchases of common stock for income tax withholding	(808)						(808)
Stock-based compensation	3,697						3,697
Other comprehensive income	9							9
Net loss	(55,638)								(55,638)
Ending Balance at Dec. 31, 2019	$ 103,081						$ 477,053	$ 190	$ (374,162)
Ending Balance , shares at Dec. 31, 2019						33,260,761

Geographic, Product and Industry Information - Summary of Revenue by Product (Detail) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Revenue	$ 17,164	$ 11,492
Synthetic Genes [Member]
Segment Reporting Information [Line Items]
Revenue	7,836	6,511
Oligo Pools [Member]
Segment Reporting Information [Line Items]
Revenue	1,242	810
DNA Libraries [Member]
Segment Reporting Information [Line Items]
Revenue	1,057	413
NGS Tools [Member]
Segment Reporting Information [Line Items]
Revenue	$ 7,029	$ 3,758

The company

3 Months Ended

Dec. 31, 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

and genomics

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 Company’s fiscal year ends on September 30.

The Company has generated net losses in all periods since its inception. As of December 31, 2019, the Company had an accumulated deficit of $374.2 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

and

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.

In December 2019, the Company commenced an at-the-market offering of its common stock with proceeds of $2.0 million, after deducting underwriting discounts and commissions and offering expenses, in the three months ended December 31, 2019.

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

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.

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, $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Numerator:
Net loss attributable to common stockholders	$ (55,638)	$ (22,639)
Denominator:
Weighted average shares used in computing net loss per share, basic and diluted	32,976,145	19,187,533
Net loss per share attributable to common stockholders, basic and diluted	$ (1.69)	$ (1.18)

- Definition

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

+ References + Details

Income taxes

3 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income taxes

8. Income taxes

In determining quarterly provisions for income taxes, the Company uses the annual estimated effective tax rate applied to the actual

year-to-date

profit or loss, adjusted for discrete items arising in that quarter. The Company’s annual estimated effective tax rate differs from the U.S. federal statutory rate primarily as a result of state taxes, foreign taxes, and changes in the Company’s valuation allowance against its deferred tax assets. For each of the three months ended December 31, 2019 and 2018, the Company recorded an immaterial provision for income taxes.

Geographic, Product and Industry Information - Summary of Revenue by Industry (Detail) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Revenue	$ 17,164	$ 11,492
Industrial Chemicals [Member]
Segment Reporting Information [Line Items]
Revenue	6,137	5,346
Academic Research [Member]
Segment Reporting Information [Line Items]
Revenue	4,951	1,972
Health Care [Member]
Segment Reporting Information [Line Items]
Revenue	5,835	3,981
Agricultural [Member]
Segment Reporting Information [Line Items]
Revenue	$ 241	$ 193

Balance sheet components (Tables)

3 Months Ended

Dec. 31, 2019

Balance Sheet Related Disclosures [Abstract]

Schedule Of Accounts Notes Loans And Financing Receivable

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


(in thousands)	December 31, 2019			September 30, 2019
Trade Receivables	$	12,475		$	11,085
Other Receivables		920			1,313
Allowance for Doubtful Accounts		(341	)		(294	)

Accounts Receivable, net	$	13,054		$	12,104

Summary of Inventory

Inventory amounts consist of the following:


(in thousands)	December 31, 2019		September 30, 2019
Raw Materials	$	5,248	$	4,900
Work-in-process		1,300		1,157
Finished Goods		868		1,273

	$	7,416	$	7,330

Stock-based compensation - Activity Under The Equity Incentive Plans (Detail) - 2018 Equity Incentive Plan [Member] $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2019 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available, Outstanding Beginning Balance	1,520,875
Shares available, Additional shares authorized	999,900
Shares available, Stock options granted	(935,273)
Shares available, Stock options forfeited	33,139
Shares available, Restricted stock units granted	(190,786)
Shares available, Shares withheld for payment of taxes	34,792
Shares available, Early exercised options repurchased	896
Shares available, Forfeiture of restricted stock units	3,483
Shares available, Outstanding Ending Balance	1,467,026
Number of options, Outstanding beginning balance	3,550,445
Options outstanding, Stock options granted	935,273
Options outstanding, Stock options exercised	(242,382)
Options outstanding, Stock options forfeited	(33,139)
Number of options, Outstanding ending balance	4,210,197
Weighted average exercise price per share, Outstanding Beginning Balance \| $ / shares	$ 15.99
Weighted average exercise price per share, Stock options granted \| $ / shares	24.08
Weighted average exercise price per share, Stock options exercised \| $ / shares	6.95
Weighted average exercise price per share, Stock options forfeited \| $ / shares	25.94
Weighted average exercise price per share, Outstanding Ending Balance \| $ / shares	$ 18.23
Weighted average remaining contractual term, Outstanding	8 years 3 months
Aggregate intrinsic value, Outstanding \| $	$ 31,997,934
Aggregate intrinsic value, Outstanding Vested or expected to vest and exercisable \| $	$ 22,020,849
Options outstanding, Vested or expected to vest	4,210,197
Weighted average exercise price per share, Vested or expected to vest \| $ / shares	$ 18.23
Weighted average remaining contractual term, Vested or expected to vest	8 years 6 months 3 days
Aggregate intrinsic value, Vested or expected to vest \| $	$ 22,020,849
Options outstanding, Vested and exercisable	1,349,270
Weighted average exercise price per share, Vested and exercisable \| $ / shares	$ 11.32
Weighted average remaining contractual term,Vested and exercisable	7 years 3 months 25 days
Aggregate intrinsic value, Vested and exercisable \| $	$ 14,339,780

Fair value measurement (Tables)

3 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

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

The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and September 30, 2019 and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value.


	December 31, 2019
(in thousands)	Level 1		Level 2		Level 3		Fair value
Assets
Cash	$	16,444	$	—	$	—	$	16,444
Money market funds		9,588		—		—		9,588
Corporate bonds		—		8,523		—		8,523
Commercial paper		—		21,515		—		21,515
U.S. government treasury bills		47,037		—		—		47,037

Totals	$	73,069	$	30,038	$	—	$	103,107


	September 30, 2019
(in thousands)	Level 1		Level 2		Level 3		Fair value
Assets
Cash	$	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

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

- Definition

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.

+ References + Details

Net Loss Per Share Attributable to Common Stockholders - Summary of Calculation of Diluted Net Loss Per Share (Detail) - shares	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	4,928,256	4,111,429
Options To Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	4,210,197	3,500,040
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	13,635	81,473
Restricted Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	565,717	395,698
Early Exercise Of Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	32,614	59,548
Warrants To Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	26,385	74,670
Employee Stock Purchase Plan [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	79,708

Stock-based compensation - Total Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 3,697	$ 1,864
Cost of Revenues [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	360	251
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	728	300
Selling, General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 2,609	$ 1,313

Stock-based compensation

3 Months Ended

Dec. 31, 2019

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

Stock-based compensation

11. Stock-based compensation

2018 Equity Incentive Plan

On September 26, 2018, the board of directors adopted the 2018 Equity Incentive Plan (the 2018 Plan) as a successor to the 2013 Stock Plan (the 2013 Plan). The number of shares reserved for issuance under the 2018 Plan upon approval of the plan was 5,856,505 shares of the Company’s common stock, and it increases 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. As of February 10, 2020, all common shares issuable under the 2018 Plan have been registered pursuant to registration statements on

Form S-8.

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

Activity under the equity incentive plans during the three months ended December 31, 2019 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, 2019		1,520,875			3,550,445		$	15.99		8.25	$	31,997,934
Additional shares authorized		999,900			—
Stock options granted		(935,273	)		935,273		$	24.08
Stock options exercised		—			(242,382	)	$	6.95
Stock options forfeited		33,139			(33,139	)	$	25.94
Restricted stock units granted		(190,786	)		—			—
Forfeiture of restricted stock units		3,483			—			—
Shares withheld for payment of taxes		34,792			—			—
Early exercised options repurchased		896			—

Outstanding at December 31, 2019		1,467,026			4,210,197		$	18.23		8.51	$	22,020,849

Vested or expected to vest at December 31, 2019					4,210,197		$	18.23		8.51	$	22,020,849
Vested and exercisable at December 31, 2019					1,349,270		$	11.32		7.32	$	14,339,780

Total stock-based compensation expense recognized was as follows:


	Three months ended December 31,
(in thousands)	2019		2018
Cost of revenues	$	360	$	251
Research and development		728		300
Selling, general and administrative		2,609		1,313

Total stock-based compensation	$	3,697	$	1,864

As of December 31, 2019, there was $36.6 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 3.43 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 three months ended December 31, 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, 2019		462,370		$	26.16		3.91	$	8,959,223
Restricted stock units granted		190,786		$	24.11
Restricted stock units vested		(83,956	)	$	26.36
Restricted stock units forfeited		(3,483	)	$	29.17

Outstanding at December 31, 2019		565,717		$	25.42		3.77	$	14,383,146

Expected to vest at December 31, 2019		565,717		$	25.42		3.77	$	14,383,146

As of December 31, 2019, there was $15.1 million of total unrecognized compensation cost related to these issuances that is expected to be recognized over a weighted average period of 3.78 years.

2018 Employee Stock Purchase Plan

On September 26, 2018, the board of directors adopted the 2018 Employee Stock Purchase Plan (the 2018 ESPP). The number of shares reserved for issuance under the 2018 ESPP upon approval was 275,225 share

of the Company’s common stock, and it increases 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. The number of shares reserved for issuance as at December 31, 2019 is as follows:


	Shares available
Outstanding at September 30, 2019		56,081
Additional shares authorized		249,470

Outstanding at December 31, 2019		305,551

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 begin in February and August of each year. As of February 10, 2020, all common shares issuable under the 2018 ESPP have been registered pursuant to registration statements on

Form S-8.

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, or 85% of the fair market value of the Company’s common stock on the last trading day of the offering period. During the three months ended December 31, 2019

and 2018,

activity under the 2018 ESPP was immaterial.

Stock-based compensation - Summary of Shares Reserved For Issuance (Detail)	Dec. 31, 2019 shares
2018 Employee Stock Purchase Plan [Member]
Disclosure Of Employee Stock Purchase Plan [Line Items]
Additional shares authorized	249,470

Commitments and contingencies

3 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and contingencies

6. Commitments and contingencies

Litigation

On February 3, 2016, Agilent filed a lawsuit against

the Company

and

Chief Executive Officer, Dr. Emily Leproust

(the

Complaint

in the Superior Court of California, Santa Clara County, or the Court. The

omplaint also named Does 1 through 20, which are fictitious placeholder defendants. Agilent’s complaint alleged three claims against Twist and Dr. Leproust: (1) alleged breach of contract, related to the use of confidential information and alleged breach of non-solicitation obligations against Dr. Leproust; (2) alleged breach of a duty of loyalty against Dr. Leproust; and (3) alleged misappropriation of trade secrets under the California Uniform Trade Secrets Act, or CUTSA, against all defendants.

On December 7, 2018, the Court granted Agilent’s motion to amend its complaint, permitting Agilent to file its Second Amended Complaint. This new complaint added amended allegations against the Company and Dr. Leproust, and also new claims for breach of contract and trade secret misappropriation against two individuals: Dr. Siyuan Chen, a current Company employee and Solange Glaize, a former Company employee. The Court also set trial to begin on February 24, 2020.

On February 6, 2020, the Company

, Dr. Leproust, Dr. Chen, Ms. Glaize (together, the Twist Group)

and Agilent agreed to the terms of a settlement agreement (the Settlement Agreement) pursuant to which the Twist Group and Agilent each agreed to request dismissal of all claims against each other. The Settlement Agreement resolves the litigation initially commenced by the Complaint and contains no admission of liability or wrongdoing. Pursuant to the Settlement Agreement, the Company agreed to pay

Agilent $22.5 million

in ca

within 14 days of

the Settlement Agreement. This amount has been accrued in the consolidated financial statements in the three months ended December 31, 2019. In addition, the Twist Group and Agilent each agreed to release the other party from all known and unknown claims related to the claims and counterclaims alleged or that could have been alleged in such litigation or that arise from the facts and events that gave rise to such litigation. Further, Agilent agreed to grant the Company a limited non-exclusive license to use the trade secrets asserted by Agilent in the litigation, which extends to the Company’s supply chain, including its customers, suppliers, distributors and resellers. Agilent also agreed not to sue the Company for the infringement of any Agilent patent issued or pending as of the date of the Settlement Agreement or claim priority thereto, solely to the extent such patents claim a trade secret alleged in the litigation. There is no other covenant or release of claims for patent infringement.

Dismissal of the case with the court is expected in February 2020.

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 December 31, 2019 are as follows:


(in thousands)	Operating leases
Years ending September 30:
Remainder of 2020	$	6,757
2021		6,687
2022		6,762
2023		6,429
2024		6,388
Thereafter		11,291

Total minimum lease payments	$	44,314
Less: imputed interest		(8,404	)

Total operating lease liabilities	$	35,910
Less: current portion		(8,371	)

Operating lease obligations, net of current portion	$	27,539

Operating lease expense was $2.0 million for the three months ended December 31, 2019.

Cash payments for amounts included in the measurement of operating lease liabilities were $1.9 million for the three months ended December 31, 2019.

As of December 31, 2019, the weighted-average remaining lease term was 6.21 years and the weighted-average discount rate was 6.97%.

Subsequent events

3 Months Ended

Dec. 31, 2019

Subsequent Events [Abstract]

Subsequent events

14. Subsequent events

In January 20

, the Company sold

2,142,853

shares of common stock

under the ATM

for gross proceeds of $

47.7

million and net proceeds of $

46.0

million after deducting the

underwriting discounts and

commissions and offering expenses.

Related party transactions

3 Months Ended

Dec. 31, 2019

Related party transactions

7. Related party transactions

During the three months ended December 31, 2019 and 2018, the Company purchased raw materials from a related party investor in the amount of $0.7 million and $1.2 million, respectively. Payable balances and cash receipts and receivable balances with the related parties were immaterial as of December 31, 2019 and September 30, 2019.

Subsequent events - Additional Information (Detail) - At The Market Offering [Member] - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Jan. 31, 2020	Dec. 31, 2019
Subsequent Event [Line Items]
Number of shares issued		96,827
Proceeds of underwritten public offering common stock		$ 2.0
Subsequent Event [Member]
Subsequent Event [Line Items]
Number of shares issued	2,142,853
Gross proceeds from issuance of stock	$ 47.7
Proceeds of underwritten public offering common stock	$ 46.0

Commitments and contingencies - Schedule Of Future Minimum Rental Payments For Operating Leases (Detail) $ in Thousands	Dec. 31, 2019 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2020	$ 6,757
2021	6,687
2022	6,762
2023	6,429
2024	6,388
Thereafter	11,291
Total minimum lease payments	44,314
Less: imputed interest	(8,404)
Total operating lease liabilities	35,910
Less: current portion	(8,371)
Operating lease obligations, net of current portion	$ 27,539

Balance sheet components - Schedule Of Accounts Notes Loans And Financing Receivable (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Trade Receivables	$ 12,475	$ 11,085
Other Receivables	920	1,313
Allowance for Doubtful Accounts	(341)	(294)
Accounts receivable, net	$ 13,054	$ 12,104

Warrants - Summary of Issued Warrants for Its Redeemable Convertible Preferred Stock and Common Stock (Detail) - Common Stock [Member] - $ / shares	3 Months Ended	12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019
Class of Warrant or Right [Line Items]
Number of shares underlying warrants	26,385	26,385
Warrants One [Member]
Class of Warrant or Right [Line Items]
Number of shares underlying warrants	18,854	18,854
Issuance date	Dec. 22, 2015	Dec. 22, 2015
Expiration date	Dec. 22, 2025	Dec. 22, 2025
Exercise price per share	$ 14.85	$ 14.85
Warrants Two [Member]
Class of Warrant or Right [Line Items]
Number of shares underlying warrants	7,531	7,531
Issuance date	Mar. 28, 2016	Mar. 28, 2016
Expiration date	Mar. 28, 2026	Mar. 28, 2026
Exercise price per share	$ 21.24	$ 21.24

Cover Page - shares	3 Months Ended
Cover Page - shares	Dec. 31, 2019	Feb. 06, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Registrant Name	Twist Bioscience Corp
Entity Central Index Key	0001581280
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Security Exchange Name	NASDAQ
Entity Address, State or Province	CA
Title of 12(b) Security	Common Stock
Trading Symbol	TWST
Entity Common Stock, Shares Outstanding		35,446,291
Entity Incorporation, State or Country Code	DE

The company - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended
	May 31, 2019	Oct. 31, 2018	Dec. 31, 2019	Sep. 30, 2019
Accumulated deficit			$ (374,162)	$ (318,524)
IPO [Member]
Proceeds of underwritten public offering common stock	$ 84,300	$ 69,600
At The Market Offering [Member]
Proceeds of underwritten public offering common stock			$ 2,000

Geographic, product and industry information

3 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Geographic, product and industry information

13. Geographic, product and industry information

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

ship-to

destinations.

North America

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


	Three months ended December 31,
(in thousands)	2019		2018
United States	$	9,827	$	8,569
EMEA		5,941		2,435
APAC		1,241		420
North America		155		68

Total	$	17,164	$	11,492

The table below sets forth revenues by products.


	Three months ended December 31,
(in thousands)	2019		2018
Synthetic genes	$	7,836	$	6,511
Oligo pools		1,242		810
DNA libraries		1,057		413
NGS tools		7,029		3,758

Total	$	17,164	$	11,492

The table below sets forth revenues by industry.


	Three months ended December 31,
(in thousands)	2019		2018
Industrial chemicals	$	6,137	$	5,346
Academic research		4,951		1,972
Healthcare		5,835		3,981
Agricultural		241		193

Total	$	17,164	$	11,492

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2019	Sep. 30, 2019
Preferred stock, par value	$ 0.00001	$ 0.00001
Preferred stock, share authorized	10,000,000	10,000,000
Preferred stock, share issued	0	0
Preferred stock, share outstanding	0	0
Common stock, par value	$ 0.00001	$ 0.00001
Common stock, share authorized	100,000,000	100,000,000
Common stock, share issued	33,260,761	32,872,675
Common stock, share outstanding	33,260,761	32,872,675

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities
Net loss	$ (55,638)	$ (22,639)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	1,505	1,472
Loss on disposal of property and equipment		8
Non-cash lease expense	236
Stock-based compensation	3,697	1,864
Discount accretion on investment securities	(150)
Non-cash interest expense	46	64
Amortization of debt discount	56	78
Changes in assets and liabilities:
Accounts receivable, net	(950)	(1,559)
Inventories	(86)	467
Prepaid expenses and other current assets	(2,917)	(366)
Other non-current assets	62	(392)
Accounts payable	(556)	(715)
Accrued expenses	(1,279)	39
Accrued compensation	(1,629)	(140)
Accrued litigation settlement	22,500
Other liabilities	189	135
Net cash used in operating activities	(34,914)	(21,684)
Cash flows from investing activities
Purchases of property and equipment	(2,058)	(1,922)
Purchases of investments	(6,537)	(63,835)
Proceeds from maturity of investments	21,000
Net cash provided by (used in) investing activities	12,405	(65,757)
Cash flows from financing activities
Proceeds from exercise of stock options	1,674	220
Proceeds from public offering, net of underwriting discounts and commissions and offering expenses	2,024	72,779
Repayments of long-term debt	(833)
Repurchases of common stock for income tax withholding	(808)
Net cash provided by financing activities	2,057	72,999
Effect of exchange rates on cash, cash equivalents and restricted cash	9
Net increase (decrease) in cash, cash equivalents and restricted cash	(20,443)	(14,442)
Cash, cash equivalents, and restricted cash at beginning of year	47,398	81,537
Cash, cash equivalents, and restricted cash at end of year	26,955	67,095
Supplemental disclosure of cash flow information
Interest paid	146	207
Income taxes paid, net of refunds	44	53
Non-cash investing and financing activities
Property and equipment additions included in accrued expenses and accounts payable	66	1,117
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	$ 2,833
Deferred offering costs included in accounts payable and accrued expenses		826
Conversion of redeemable convertible preferred stock warrant liability to equity		631
Conversion of redeemable convertible preferred stock to common stock		$ 290,462

Commitments and contingencies - Additional Information (Detail) - USD ($) $ in Millions		3 Months Ended
	Feb. 06, 2020	Dec. 31, 2019
Loss Contingencies [Line Items]
Operating lease payment		$ 1.9
Operating lease expense		$ 2.0
Lease weighted-average remaining lease term		6 years 2 months 15 days
Lease Weighted Average Discount Rate		6.97%
Agilent [Member] \| Subsequent Event [Member]
Loss Contingencies [Line Items]
Litigation settlement amount	$ 22.5

Goodwill and intangible assets (Tables)

3 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Intangible Assets Balances

The intangible assets balances are presented below:


	December 31, 2019
(in thousands, except for years)	Useful life in years		Gross carrying amount		Accumulated amortization			Net book value
Developed Technology		6	$	1,220	$	(762	)	$	458
Tradenames & Trademarks		2		20		(20	)		—

Total indefinite-lived intangible assets			$	1,240	$	(782	)	$	458


	September 30, 2019
(in thousands, except for years)	Useful life 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

Fair Value Measurement - Summary of Company's Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Assets
Assets, Totals	$ 103,107	$ 138,107
Cash [Member]
Assets
Assets, Totals	16,444	19,344
Money Market Funds [Member]
Assets
Assets, Totals	9,588	27,390
Corporate bonds [Member]
Assets
Assets, Totals	8,523	8,530
Commercial Paper [Member]
Assets
Assets, Totals	21,515	28,361
US Government Treasury Bills [Member]
Assets
Assets, Totals	47,037	54,482
Fair Value, Inputs, Level 1 [Member]
Assets
Assets, Totals	73,069	101,216
Fair Value, Inputs, Level 1 [Member] \| Cash [Member]
Assets
Assets, Totals	16,444	19,344
Fair Value, Inputs, Level 1 [Member] \| Money Market Funds [Member]
Assets
Assets, Totals	9,588	27,390
Fair Value, Inputs, Level 1 [Member] \| US Government Treasury Bills [Member]
Assets
Assets, Totals	47,037	54,482
Fair Value, Inputs, Level 2 [Member]
Assets
Assets, Totals	30,038	36,891
Fair Value, Inputs, Level 2 [Member] \| Corporate bonds [Member]
Assets
Assets, Totals	8,523	8,530
Fair Value, Inputs, Level 2 [Member] \| Commercial Paper [Member]
Assets
Assets, Totals	$ 21,515	$ 28,361

Common stock

3 Months Ended

Dec. 31, 2019

Equity [Abstract]

Common stock

10. Common stock

At-the-Market Offering (the “ATM”)

In December 2019,

the Company

entered into a sales agreement with Cowen and Company, LLC for

the

ATM to offer and sell shares of

its

common stock having an aggregate offering price of up to $50.0 million from time to time. During the three months ended December 31, 2019,

the

ompany sold

a total of 96,827 shares of

its

common stock at a weighted-average price of $23.76 per share

and

total net proceeds of $2.0 million under the ATM.

Commitments and contingencies (Tables)

3 Months Ended

Dec. 31, 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 December 31, 2019 are as follows:


(in thousands)	Operating leases
Years ending September 30:
Remainder of 2020	$	6,757
2021		6,687
2022		6,762
2023		6,429
2024		6,388
Thereafter		11,291

Total minimum lease payments	$	44,314
Less: imputed interest		(8,404	)

Total operating lease liabilities	$	35,910
Less: current portion		(8,371	)

Operating lease obligations, net of current portion	$	27,539

Warrants

3 Months Ended

Dec. 31, 2019

Text Block [Abstract]

Warrants

9. Warrants

Outstanding warrants for the Company’s common stock, issued in connection with its long-term debt agreements, were as follows:

(in thousands, except share and per share data)

Number of

underlying

warrants

Exercise

December 31,

2019

Issuance date

Expiration date

price per

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

(in thousands, except share and per share data)

Number of

underlying

warrants

Exercise

September 30,

2019

Issuance date

Expiration date

price per

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

Summary of significant accounting policies (Policies)

3 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Basis of presentation and use of estimates

The accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information. Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes included in the Annual Report on

Form 10-K

for the fiscal year ended September 30, 2019 (the Annual Report on

Form 10-K)

filed with the Securities and Exchange Commission on December 1

, 2019. The condensed consolidated financial statements are unaudited and have been prepared on a basis consistent with that used to prepare the audited annual consolidated financial statements and include, in the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair statement of the condensed consolidated financial statements. The condensed consolidated balance sheet at September 30, 2019 is derived from audited consolidated financial statements but does not include all disclosures required by GAAP. The operating results for the three months ended December 31, 2019 are not necessarily indicative of the results expected for the full year ending September 30, 2020.

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

Significant accounting policies

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

Form 10-K

except as disclosed

Recently adopted accounting pronouncements

– Leases

” section

below.

Recent accounting pronouncements

Recently adopted accounting pronouncements – Leases

In February 2016, the

Financial Accounting Standards Board (

FASB

)

issued new lease accounting guidance in

Accounting Standard Update (

ASU

)

2016-02,

Leases

, and in July 2018 issued ASU

2018-10,

Codification Improvements to Topic 842, Leases

, and ASU

2018-11,

Leases (Topic 842): Targeted Improvements

(the foregoing ASUs collectively referred to as “Topic 842”). Under the new guidance, lessees are 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.

On October 1, 2019, the Company adopted Topic 842 using the modified retrospective approach. The adoption had a material effect on the condensed consolidated balance sheets, but did not have a material effect on the condensed consolidated statements of operations and comprehensive loss. Prior period amounts were not adjusted and continue to be reported in accordance with the previous accounting under ASC 840,

Leases

. The Company elected the package of practical expedients permitted under the transition guidance which, among other things, allows carrying forward the historical classification of existing leases as of October 1, 2019.

As a result of electing the transition guidance as described above, on October 1, 2019, the Company recorded operating lease

right-of-use

assets of $35.8 million, including the derecognition of deferred rent of $0.1 million and prepaid rent of $1.6 million, with the corresponding lease liabilities totaling $34.3 million. There was no material effect to the Company’s statements of operations and comprehensive loss upon adoption.

Under Topic 842, the Company determines if an arrangement is a lease at inception primarily based on the determination of the party responsible for directing the use of an underlying asset within a contract. Operating lease

right-of-use

assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease

right-of-use

assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the present value of

committed

lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date which includes significant assumptions made including the Company’s estimated credit rating

, annual percentage yields from corporate debt financings of companies of similar size and credit rating over a loan term approximating the remaining term of each lease, and government bond yields for terms approximating the remaining term of each lease in countries where the leased assets are located. Certain leases include payments of operating expenses that are dependent and may be revised based on the landlord’s estimate, and these variable payments are therefore excluded from the lease payments used to determine the operating lease right-of-use asset and lease liability

. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise any such options. Lease expense is recognized on a straight-line basis over the expected lease term.

The Company elected to not apply the recognition requirements of Topic 842 to short-term leases with terms of 12 months or less which do not include an option to purchase the underlying asset that the Company

reasonably certain to exercise. For short-term leases, lease payments are recognized as operating expenses on a straight-line basis over the lease term.

he Company elected to account for lease and

non-lease

components as a single lease component.

Additional information and disclosures required by Topic 842 are contained in Note 6.

Recently issued accounting pronouncements not yet adopted

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, 2020, 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 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, 2020. 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 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.

In December 2019, the FASB issued ASU

2019-12,

Simplifying the Accounting for Income Taxes

. The ASU simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740,

Income Taxes

, related to the approach for allocating income tax expense or benefit for the year to continuing operations, discontinued operations, other comprehensive income, and other charges or credits recorded directly to shareholders’ equity; the methodology for calculating income taxes in an interim period; and the recognition of deferred tax liabilities for outside basis differences. The ASU is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years, with early adoption permitted. The Company is currently assessing the impact of adoption on its disclosures.

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Statement of Comprehensive Income [Abstract]
Revenues	$ 17,164	$ 11,492
Operating expenses:
Cost of revenues	13,792	11,857
Research and development	10,297	7,273
Selling, general and administrative	26,405	15,259
Litigation settlement	22,500
Total operating expenses	72,994	34,389
Loss from operations	(55,830)	(22,897)
Interest income	564	664
Interest expense	(248)	(348)
Other income (expense), net	(87)	(15)
Loss before income taxes	(55,601)	(22,596)
Provision for income taxes	(37)	(43)
Net loss attributable to common stockholders	(55,638)	(22,639)
Other comprehensive loss:
Change in unrealized loss on investments	16	(7)
Foreign currency translation adjustment	(7)	(56)
Comprehensive loss	$ (55,629)	$ (22,702)
Net loss per share attributable to common stockholders—basic and diluted	$ (1.69)	$ (1.18)
Weighted average shares used in computing net loss per share attributable to common stockholders—basic and diluted	32,976,145	19,187,533

Net loss per share attributable to common stockholders

3 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Net loss per share attributable to common stockholders

12. Net loss per share attributable to common stockholders

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


	Three months ended December 31,
(in thousands, except share and per share data)	2019			2018
Numerator:
Net loss attributable to common stockholders	$	(55,638	)	$	(22,639	)

Denominator:
Weighted average shares used in computing net loss per share, basic and diluted		32,976,145			19,187,533

Net loss per share attributable to common stockholders, basic and diluted	$	(1.69	)	$	(1.18	)

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


	Three months ended December 31,
(in thousands, except share and per share data)	2019		2018
Shares subject to options to purchase common stock		4,210,197		3,500,040
Unvested restricted shares of common stock		13,635		81,473
Unvested restricted stock units		565,717		395,698
Unvested shares of common stock issued upon early exercise of stock options		32,614		59,548
Shares subject to employee stock purchase plan		79,708		—
Shares subject to warrants to purchase common stock		26,385		74,670

Total		4,928,256		4,111,429

Stock-based compensation (Tables)

3 Months Ended

Dec. 31, 2019

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

Activity Under The Equity Incentive Plans

Activity under the equity incentive plans during the three months ended December 31, 2019 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, 2019		1,520,875			3,550,445		$	15.99		8.25	$	31,997,934
Additional shares authorized		999,900			—
Stock options granted		(935,273	)		935,273		$	24.08
Stock options exercised		—			(242,382	)	$	6.95
Stock options forfeited		33,139			(33,139	)	$	25.94
Restricted stock units granted		(190,786	)		—			—
Forfeiture of restricted stock units		3,483			—			—
Shares withheld for payment of taxes		34,792			—			—
Early exercised options repurchased		896			—

Outstanding at December 31, 2019		1,467,026			4,210,197		$	18.23		8.51	$	22,020,849

Vested or expected to vest at December 31, 2019					4,210,197		$	18.23		8.51	$	22,020,849
Vested and exercisable at December 31, 2019					1,349,270		$	11.32		7.32	$	14,339,780

Total Stock-based Compensation Expense

Total stock-based compensation expense recognized was as follows:


	Three months ended December 31,
(in thousands)	2019		2018
Cost of revenues	$	360	$	251
Research and development		728		300
Selling, general and administrative		2,609		1,313

Total stock-based compensation	$	3,697	$	1,864

Schedule of Nonvested Restricted Stock Units Activity

Activity with respect to the Company’s restricted stock units during the three months ended December 31, 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, 2019		462,370		$	26.16		3.91	$	8,959,223
Restricted stock units granted		190,786		$	24.11
Restricted stock units vested		(83,956	)	$	26.36
Restricted stock units forfeited		(3,483	)	$	29.17

Outstanding at December 31, 2019		565,717		$	25.42		3.77	$	14,383,146

Expected to vest at December 31, 2019		565,717		$	25.42		3.77	$	14,383,146

Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity

The number of shares reserved for issuance as at December 31, 2019 is as follows:


	Shares available
Outstanding at September 30, 2019		56,081
Additional shares authorized		249,470

Outstanding at December 31, 2019		305,551

Summary of significant accounting policies

3 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Summary of significant accounting policies

2. Summary of significant accounting policies

Basis of presentation and use of estimates

Form 10-K

for the fiscal year ended September 30, 2019 (the Annual Report on

Form 10-K)

filed with the Securities and Exchange Commission on December 1

Significant accounting policies

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

Form 10-K

except as disclosed

Recently adopted accounting pronouncements

– Leases

” section

below.

Recent accounting pronouncements

Recently adopted accounting pronouncements – Leases

In February 2016, the

Financial Accounting Standards Board (

FASB

)

issued new lease accounting guidance in

Accounting Standard Update (

ASU

)

2016-02,

Leases

, and in July 2018 issued ASU

2018-10,

Codification Improvements to Topic 842, Leases

, and ASU

2018-11,

Leases (Topic 842): Targeted Improvements

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.

Leases

As a result of electing the transition guidance as described above, on October 1, 2019, the Company recorded operating lease

right-of-use

assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the present value of

committed

reasonably certain to exercise. For short-term leases, lease payments are recognized as operating expenses on a straight-line basis over the lease term.

he Company elected to account for lease and

non-lease

components as a single lease component.

Additional information and disclosures required by Topic 842 are contained in Note 6.

Recently issued accounting pronouncements not yet adopted

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

In January 2017, the FASB issued

ASU 2017-04,

Intangibles—Goodwill and Other (Topic

350): Simplifying the Test for Goodwill Impairment.

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

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.

In December 2019, the FASB issued ASU

2019-12,

Simplifying the Accounting for Income Taxes

. The ASU simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740,

Income Taxes

Balance sheet components

3 Months Ended

Dec. 31, 2019

Balance Sheet Related Disclosures [Abstract]

Balance sheet components

4. Balance sheet components

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


(in thousands)	December 31, 2019			September 30, 2019
Trade Receivables	$	12,475		$	11,085
Other Receivables		920			1,313
Allowance for Doubtful Accounts		(341	)		(294	)

Accounts Receivable, net	$	13,054		$	12,104

Inventory amounts consist of the following:


(in thousands)	December 31, 2019		September 30, 2019
Raw Materials	$	5,248	$	4,900
Work-in-process		1,300		1,157
Finished Goods		868		1,273

	$	7,416	$	7,330

Stock-based compensation - Schedule of Nonvested Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019
Nonvested Restricted Stock Units Activity [Line Items]
Number of shares, Outstanding Beginning Balance	462,370
Number of shares, granted	190,786
Number of shares, vested	(83,956)
Number of shares, forfeited	(3,483)
Number of shares, Outstanding Ending Balance	565,717	462,370
Expected to vest, Outstanding	565,717
Weighted average grant date fair value price per share, Outstanding Beginning Balance	$ 26.16
Weighted average grant date fair value price per share, granted	24.11
Weighted average grant date fair value price per share, vested	26.36
Weighted average grant date fair value price per share, forfeited	29.17
Weighted average grant date fair value price per share, Outstanding Ending Balance	25.42	$ 26.16
Weighted average grant date fair value price per share, Expected to vest	$ 25.42
Weighted average remaining contractual term, Outstanding	3 years 9 months 7 days	3 years 10 months 27 days
Weighted average remaining contractual term, Expected to vest	3 years 9 months 7 days
Aggregate intrinsic value	$ 14,383,146	$ 8,959,223
Aggregate intrinsic value, Expected to vest	$ 14,383,146

Net loss per share attributable to common stockholders (Tables)

3 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

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

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


	Three months ended December 31,
(in thousands, except share and per share data)	2019			2018
Numerator:
Net loss attributable to common stockholders	$	(55,638	)	$	(22,639	)

Denominator:
Weighted average shares used in computing net loss per share, basic and diluted		32,976,145			19,187,533

Net loss per share attributable to common stockholders, basic and diluted	$	(1.69	)	$	(1.18	)

Summary of Calculation of Diluted Net Loss Per Share


	Three months ended December 31,
(in thousands, except share and per share data)	2019		2018
Shares subject to options to purchase common stock		4,210,197		3,500,040
Unvested restricted shares of common stock		13,635		81,473
Unvested restricted stock units		565,717		395,698
Unvested shares of common stock issued upon early exercise of stock options		32,614		59,548
Shares subject to employee stock purchase plan		79,708		—
Shares subject to warrants to purchase common stock		26,385		74,670

Total		4,928,256		4,111,429

Warrants (Tables)

3 Months Ended

Dec. 31, 2019

Text Block [Abstract]

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

Outstanding warrants for the Company’s common stock, issued in connection with its long-term debt agreements, were as follows:

(in thousands, except share and per share data)

Number of

underlying

warrants

Exercise

December 31,

2019

Issuance date

Expiration date

price per

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

(in thousands, except share and per share data)

Number of

underlying

warrants

Exercise

September 30,

2019

Issuance date

Expiration date

price per

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

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Common Stock [Member]
Net of underwriting discounts, commissions and offering expenses	$ 276	$ 10,903

Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Raw materials purchased from related party investor	$ 0.7	$ 1.2
Description of related party transactions	During the three months ended December 31, 2019 and 2018, the Company purchased raw materials from a related party investor in the amount of $0.7 million and $1.2 million, respectively. Payable balances and cash receipts and receivable balances with the related parties were immaterial as of December 31, 2019 and September 30, 2019.

- Definition

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.

+ References + Details

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Oct. 01, 2019
Operating lease right of use assets	$ 37,238
Operating lease liabilities	$ 35,910
Accounting Standards Update 2018-11 [Member]
Operating lease right of use assets		$ 35,800
Operating lease liabilities		34,300
Operating lease deferred rent		100
Operating lease prepaid rent		$ 1,600

Common stock - Additional information (Detail) - At The Market Offering [Member] $ / shares in Units, $ in Millions	3 Months Ended
	Dec. 31, 2019 USD ($) $ / shares shares
Sale of stock authorized amount	$ 50.0
Number of shares issued \| shares	96,827
Price per share \| $ / shares	$ 23.76
Proceeds of underwritten public offering common stock	$ 2.0

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($)	3 Months Ended		12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2019
Goodwill And Intangible Assets [Line Items]
Changes in carrying value of goodwill	$ 0		$ 0
Maximum [Member]
Goodwill And Intangible Assets [Line Items]
Total amortization expense related to intangible assets	$ 100,000	$ 100,000

Geographic, Product and Industry Information - Summary of Revenue by Geographic Region (Detail) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Revenue	$ 17,164	$ 11,492
United States [Member]
Segment Reporting Information [Line Items]
Revenue	9,827	8,569
EMEA [Member]
Segment Reporting Information [Line Items]
Revenue	5,941	2,435
Asia Pacific [Member]
Segment Reporting Information [Line Items]
Revenue	1,241	420
North America [Member]
Segment Reporting Information [Line Items]
Revenue	$ 155	$ 68

Fair value measurement

3 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair value measurement

3. Fair value measurement

The Company assesses the fair value of financial instruments based on the provisions of ASC 820,

Fair Value Measurements

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

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

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

non-active

market for valuation of its short-term investments.

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

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


	December 31, 2019
(in thousands)	Level 1		Level 2		Level 3		Fair value
Assets
Cash	$	16,444	$	—	$	—	$	16,444
Money market funds		9,588		—		—		9,588
Corporate bonds		—		8,523		—		8,523
Commercial paper		—		21,515		—		21,515
U.S. government treasury bills		47,037		—		—		47,037

Totals	$	73,069	$	30,038	$	—	$	103,107


	September 30, 2019
(in thousands)	Level 1		Level 2		Level 3		Fair value
Assets
Cash	$	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

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

As of December 31, 2019 and September 30, 2019, gross unrealized gains and unrealized losses for cash equivalents and short-term investments were not material, and the contractual maturities of all marketable securities were less than one year.

- Definition

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

+ References + Details

Goodwill and Intangible Assets - Summary of Intangible Assets Balances (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 1,240	$ 1,240
Accumulated amortization	(782)	(732)
Net book value	$ 458	$ 508
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	(762)	(712)
Net book value	$ 458	$ 508
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)

Geographic, product and industry information (Tables)

3 Months Ended

Dec. 31, 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, Mexico, and South America; EMEA consists of Europe, the Middle East, and Africa; and APAC consists of Japan, China, South Korea, Singapore, Malaysia, and Australia.


	Three months ended December 31,
(in thousands)	2019		2018
United States	$	9,827	$	8,569
EMEA		5,941		2,435
APAC		1,241		420
North America		155		68

Total	$	17,164	$	11,492

Summary of Revenue by Product

The table below sets forth revenues by products.


	Three months ended December 31,
(in thousands)	2019		2018
Synthetic genes	$	7,836	$	6,511
Oligo pools		1,242		810
DNA libraries		1,057		413
NGS tools		7,029		3,758

Total	$	17,164	$	11,492

Summary of Revenue by Industry

The table below sets forth revenues by industry.


	Three months ended December 31,
(in thousands)	2019		2018
Industrial chemicals	$	6,137	$	5,346
Academic research		4,951		1,972
Healthcare		5,835		3,981
Agricultural		241		193

Total	$	17,164	$	11,492

Goodwill and intangible assets

3 Months Ended

Dec. 31, 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 as of December 31, 2019 and September 30, 2019. Total amortization expense related to intangible assets was less than $0.1 million for the three months ended December 3

, 2019 and 2018.

The intangible assets balances are presented below:


	December 31, 2019
(in thousands, except for years)	Useful life in years		Gross carrying amount		Accumulated amortization			Net book value
Developed Technology		6	$	1,220	$	(762	)	$	458
Tradenames & Trademarks		2		20		(20	)		—

Total indefinite-lived intangible assets			$	1,240	$	(782	)	$	458


	September 30, 2019
(in thousands, except for years)	Useful life 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

Stock-based compensation - Additional Information (Detail) - USD ($) $ in Millions		3 Months Ended
	Sep. 26, 2018	Dec. 31, 2019	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, stock options		$ 36.6
Unrecognized stock-based compensation expense, period for recognition		3 years 5 months 4 days
2018 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Minimum annual increase in share reserved for issuance	999,900
Annual automatic Increase in share reserved for issuance	4.00%
2018 Equity Incentive Plan [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares may be issued	5,856,505
2018 ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Minimum annual increase in share reserved for issuance	249,470
Annual automatic Increase in share reserved for issuance	1.00%
Aggregate number of common stock shares reserved for issuance	275,225	305,551	56,081
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		$ 15.1
Unrecognized stock-based compensation expense, period for recognition		3 years 9 months 10 days