Nautilus Biotechnology, Inc. 10-K

Item 8. Financial Statements and Supplementary Data INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page Report of Independent Registered Public Accounting Firm (PCAOB ID 238 ) 86 Consolidated Balance Sheets 87 Consolidated Statements of Operations 88 Consolidated Statements of Comprehensive Loss 89 Consolidated Statements of Stockholders’ Equity 90 Consolidated Statements of Cash Flows 91 Notes to Consolidated Financial Statements 92 85 Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholders of Nautilus Biotechnology, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Nautilus Biotechnology, Inc. and its subsidiary (the “Company”) as of December 31, 2024 and 2023, and the related consolidated statements of operations, of comprehensive loss, of stockholders’ equity and of cash flows for the years then ended, including the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. /s/ PricewaterhouseCoopers LLP San Jose, California February 27, 2025 We have served as the Company’s auditor since 2020. 86 Nautilus Biotechnology, Inc. Consolidated Balance Sheets At December 31, 2024 and 2023 (in thousands, except share and per share amounts) December 31, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 27,646 $ 19,397 Short-term investments 102,247 154,021 Prepaid expenses and other current assets 2,933 3,419 Total current assets 132,826 176,837 Property and equipment, net 4,076 4,267 Operating lease right-of-use assets 28,256 32,634 Long-term investments 76,405 90,647 Other long-term assets 1,180 1,180 Total assets $ 242,743 $ 305,565 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 987 $ 1,639 Accrued expenses and other liabilities 2,548 3,945 Current portion of operating lease liability 4,097 3,538 Total current liabilities 7,632 9,122 Operating lease liability, net of current portion 26,381 31,090 Total liabilities 34,013 40,212 Commitments and contingencies (Note 8) Stockholders’ equity: Preferred stock, $ 0.0001 par value, 200,000,000 authorized as of December 31, 2024 and 2023, respectively; 0 shares issued and outstanding as of December 31, 2024 and 2023, respectively — — Common stock, $ 0.0001 par value, 1,000,000,000 shares authorized as of December 31, 2024 and 2023, respectively; 126,106,176 and 125,068,601 shares issued and outstanding as of December 31, 2024 and 2023, respectively 13 13 Additional paid-in capital 481,679 467,834 Accumulated other comprehensive income (loss) 57 ( 255 ) Accumulated deficit ( 273,019 ) ( 202,239 ) Total stockholders’ equity 208,730 265,353 Total liabilities and stockholders’ equity $ 242,743 $ 305,565 The accompanying notes are an integral part of these consolidated financial statements. 87 Nautilus Biotechnology, Inc. Consolidated Statements of Operations Years Ended December 31, 2024 and 2023 (in thousands, except share and per share amounts) Year Ended December 31, 2024 Year Ended December 31, 2023 Operating expenses: Research and development $ 50,477 $ 47,251 General and administrative 30,999 28,901 Total operating expenses 81,476 76,152 Other income (expense): Interest income 10,780 12,550 Other expense ( 84 ) ( 73 ) Total other income $ 10,696 $ 12,477 Net loss $ ( 70,780 ) $ ( 63,675 ) Net loss per share attributable to common stockholders, basic and diluted $ ( 0.56 ) $ ( 0.51 ) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 125,426,509 124,919,144 The accompanying notes are an integral part of these consolidated financial statements. 88 Nautilus Biotechnology, Inc. Consolidated Statements of Comprehensive Loss Years Ended December 31, 2024 and 2023 (in thousands) Year Ended December 31, 2024 Year Ended December 31, 2023 Net loss $ ( 70,780 ) $ ( 63,675 ) Other comprehensive income: Unrealized gain on securities available-for-sale 312 1,599 Total other comprehensive income 312 1,599 Comprehensive loss $ ( 70,468 ) $ ( 62,076 ) The accompanying notes are an integral part of these consolidated financial statements. 89 Nautilus Biotechnology, Inc. Consolidated Statements of Stockholders’ Equity Years Ended December 31, 2024 and 2023 Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Accumulated Deficit Total Stockholders’ Equity (in thousands, except share amounts) Shares Amount Balances at December 31, 2022 124,865,485 $ 12 $ 455,330 $ ( 1,854 ) $ ( 138,564 ) $ 314,924 Issuance of common stock upon exercise of vested stock options 70,865 — 104 — — 104 Issuance of common stock under employee stock purchase plan 132,251 1 263 — — 264 Stock-based compensation expense — — 12,137 — — 12,137 Other comprehensive income — — — 1,599 — 1,599 Net loss — — — — ( 63,675 ) ( 63,675 ) Balances at December 31, 2023 125,068,601 $ 13 $ 467,834 $ ( 255 ) $ ( 202,239 ) $ 265,353 Issuance of common stock upon exercise of vested stock options 790,111 — 620 — — 620 Issuance of common stock under employee stock purchase plan 247,464 — 524 — — 524 Stock-based compensation expense — — 12,701 — — 12,701 Other comprehensive income — — — 312 — 312 Net loss — — — — ( 70,780 ) ( 70,780 ) Balances at December 31, 2024 126,106,176 $ 13 $ 481,679 $ 57 $ ( 273,019 ) $ 208,730 The accompanying notes are an integral part of these consolidated financial statements. 90 Nautilus Biotechnology, Inc. Consolidated Statements of Cash Flows Years Ended December 31, 2024 and 2023 (in thousands) Year Ended December 31, 2024 Year Ended December 31, 2023 Cash flows from operating activities Net loss $ ( 70,780 ) $ ( 63,675 ) Adjustments to reconcile net loss to net cash used in operating activities Stock-based compensation 12,701 12,137 Amortization of operating lease right-of-use assets 4,378 3,856 Depreciation 1,975 1,849 In-process research and development 760 — Loss on disposal of property and equipment 84 — Amortization (accretion) of premiums (discount) on securities, net ( 2,804 ) ( 2,659 ) Changes in operating assets and liabilities: Prepaid expenses and other assets 666 ( 821 ) Accounts payable ( 578 ) 393 Accrued expenses and other liabilities ( 1,397 ) 417 Operating lease liabilities ( 4,150 ) ( 3,208 ) Net cash used in operating activities ( 59,145 ) ( 51,711 ) Cash flows from investing activities Proceeds from maturities of securities 155,410 71,599 Purchases of securities ( 86,278 ) ( 112,892 ) Purchases of property and equipment ( 2,122 ) ( 2,442 ) Cash paid in connection with asset acquisition ( 760 ) — Net cash provided (used) by investing activities 66,250 ( 43,735 ) Cash flows from financing activities Proceeds from exercise of stock options 620 104 Proceeds from issuance of common stock under employee stock purchase plan 524 264 Net cash provided by financing activities 1,144 368 Net increase (decrease) in cash, cash equivalents and restricted cash 8,249 ( 95,078 ) Cash, cash equivalents and restricted cash at beginning of period 20,399 115,477 Cash, cash equivalents and restricted cash at end of period $ 28,648 $ 20,399 Supplementary cash flow information on non-cash activities: Acquisitions of property and equipment included in accounts payable $ 74 $ 148 Right-of-use assets obtained in exchange for operating lease liability $ — $ 7,623 The accompanying notes are an integral part of these consolidated financial statements. 91 Nautilus Biotechnology, Inc. Notes to Consolidated Financial Statements 1. Description of Business and Basis of Presentation Nautilus Biotechnology, Inc. (the “Company”) is a biotechnology company incorporated in 2016 with corporate headquarters in Seattle, Washington and research and development headquarters in San Carlos, California. Since the Company’s incorporation in 2016, the Company has devoted substantially all of its resources to research and development activities, including with respect to its proteomics platform, business planning, establishing and maintaining its intellectual property portfolio, hiring personnel, raising capital and providing general and administrative support for these operations. On June 9, 2021, Nautilus Biotechnology, Inc. a Delaware corporation (f/k/a ARYA Sciences Acquisition Corp. III, a Cayman Islands exempted company and the Company’s predecessor company (“ARYA”)), consummated the business combination (the “Business Combination”) pursuant to the terms of that certain Business Combination Agreement, dated as of February 7, 2021 (the “BCA”), by and among ARYA, Mako Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of ARYA (“Mako Merger Sub”), and Nautilus Subsidiary, Inc., a Delaware corporation (f/k/a Nautilus Biotechnology, Inc.) (“Legacy Nautilus”). As a result of the Business Combination, ARYA changed its name to “Nautilus Biotechnology, Inc.” and Mako Merger Sub merged with and into Legacy Nautilus with Legacy Nautilus surviving as the surviving company and becoming a wholly-owned subsidiary of ARYA (the “Merger” and, collectively with the other transactions described in the BCA, the “Reverse Recapitalization”). In addition, in conjunction with the completion of the Business Combination, certain investors (“PIPE Investors”) subscribed for the purchase of an aggregate of 20,000,000 shares of common stock of the Company (“New Nautilus Common Stock”) at a price of $ 10.00 per share for aggregate gross proceeds of $ 200.0 million (“PIPE Financing”). Basis of Presentation The consolidated financial statements and accompanying notes were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and regulations of the U.S. Securities and Exchange Commission. The accompanying financial statements are consolidated for the years ended December 31, 2024 and 2023 and include the accounts of Nautilus Biotechnology, Inc. and its wholly-owned subsidiary, Nautilus Subsidiary, Inc. All intercompany transactions and balances have been eliminated upon consolidation. The Company’s reporting currency is the U.S. dollar. Going Concern The Company’s consolidated financial statements have been prepared on the basis of continuity of operations, the realization of assets, and the satisfaction of liabilities in the ordinary course of business. Since inception, the Company has been engaged in developing its technology, raising capital, and recruiting personnel. The Company’s operating plan may change as a result of many factors currently unknown and there can be no assurance that the current operating plan will be achieved in the time frame anticipated by the Company, and it may need to seek additional funds sooner than planned. If adequate funds are not available to the Company on a timely basis, it may be required to delay, limit, reduce, or terminate certain commercial efforts, or pursue merger or acquisition strategies, all of which could adversely affect the holdings or the rights of the Company’s stockholders. The Company has incurred net operating losses and negative cash flows from operations in every year since inception and expects this to continue for the foreseeable future. As of December 31, 2024, the Company had an accumulated deficit of $ 273.0 million. The Company has funded its operations primarily with proceeds from the issuance of redeemable convertible preferred stock and common stock. In June 2021, the Company received gross proceeds of approximately $ 345.5 million from PIPE Investors and the Business Combination offset by approximately $ 18.2 million of transaction costs and underwriters’ fees relating to the closing of the Business Combination. The Company had cash, cash equivalents, and short-term investments of $ 129.9 million as of December 31, 2024. As of the date on which these consolidated financial statements were issued, the Company believes that its cash, cash equivalents, and short-term investments will be sufficient to fund its operations for at least the next twelve months following the issuance of the 92 Nautilus Biotechnology, Inc. Notes to Consolidated Financial Statements—(Continued) consolidated financial statements. The Company’s actual results could vary as a result of, and its near and long-term future capital requirements will depend on many factors, including its growth rate and the timing and extent of spending to support its research and development efforts. The Company has based its estimates on assumptions that may prove to be wrong, and it could use its available capital resources sooner than it currently expects. The Company may be required to seek additional equity or debt financing. Future liquidity and cash requirements will depend on numerous factors. In the event that additional financing is required, the Company may not be able to raise it on acceptable terms or at all. If the Company is unable to raise additional capital when desired, or if it cannot expand its operations or otherwise capitalize on its business opportunities because it lacks sufficient capital, its business, operating results, and financial condition would be adversely affected. 2. Significant Accounting Policies Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include determining the estimated lives of property and equipment, stock-based compensation, research and development accruals, and the valuation allowance for deferred tax assets. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. As future events and their effects cannot be determined with precision, actual results could materially differ from those estimates and assumptions. Concentrations of Credit Risk and Other Risks and Uncertainties Credit risk represents the accounting loss that would be recognized as of the reporting date if counterparties failed to perform as contracted. Financial instruments, which potentially subject the Company to concentration of credit risk, consist of cash balances maintained in excess of federal depository insurance limits and investments in marketable debt securities that are not federally insured. The Company has not experienced any losses in such accounts and believes it is not exposed to significant credit risk on cash or investments. The Company relies, and expects to continue to rely, on a number of vendors to provide services, supplies and materials related to its research and development programs. The Company relies on single source suppliers for certain components and materials used in the Nautilus platform. The loss of any of these single source suppliers would require the Company to expend significant time and effort to locate and qualify an alternative source of supply for these components. The Company also relies, and expects to continue to rely, on third-party manufacturers and, in many cases, single third-party manufacturers for the production of certain reagents and antibodies. These programs could be adversely affected by a significant interruption in these services or the availability of materials. The Company is subject to risks similar to those of pre-clinical stage companies in the biopharmaceutical industry, including dependence on key individuals, the need to develop commercially viable products, competition from other companies, many of whom are larger and better capitalized, the impact of negative global and national events and the need to obtain adequate additional financing to fund the development of its products. There can be no assurance that the Company’s research and development will be successfully completed, that adequate protection for the Company’s intellectual property will be maintained, that any products developed will obtain required regulatory 93 Nautilus Biotechnology, Inc. Notes to Consolidated Financial Statements—(Continued) approval or that any approved products will be commercially viable. Even if the Company’s development efforts are successful, it is uncertain when, if ever, the Company will generate significant revenue from the sale of its products. Segment Reporting Operating segments are defined as components of an entity where discrete financial information is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company’s Chief Executive Officer is its CODM. The Company’s CODM reviews financial information presented on a consolidated basis for the purposes of making operating decisions, allocating resources and evaluating financial performance. As such, the Company has determined that it operates in one operating and one reportable segment. The Company’s long-lived assets are entirely based in the United States. Cash and Cash Equivalents The Company considers all highly-liquid investments with an original maturity of three months or less as of the date of acquisition to be cash equivalents. Investments The Company considers investments with an original maturity greater than three months and remaining maturities less than 12 months to be short-term investments. The Company classifies those investments that are not required for use in current operations and that mature in more than 12 months as long-term investments. The Company classifies its marketable debt securities as available for sale and reports them at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income (loss). For investments sold prior to maturity, the cost of investments sold is based on the specific identification method. Realized gains and losses on the sale of investments are recorded in other income (expense), net in the consolidated statement of operations. If the estimated fair value of a marketable debt security is below its amortized cost basis, the Company evaluates whether it is more likely than not that the Company will be required to sell the security before its anticipated recovery in market value and whether credit losses exist for the related securities. Credit-related losses are recognized as an allowance for credit losses on the balance sheet with a corresponding adjustment to earnings. Unrealized gains and losses that are unrelated to credit deterioration are reported in accumulated other comprehensive income (loss). Fair Value of Financial Instruments Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. 94 Nautilus Biotechnology, Inc. Notes to Consolidated Financial Statements—(Continued) In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement. The carrying amounts of cash and cash equivalents, prepaid expenses and other current assets, accounts payable and accrued expenses and other liabilities approximate their respective fair values due to their short-term nature. Property and Equipment, net Property and equipment, net, consisting primarily of laboratory equipment, computers, furniture and fixtures, and office equipment are recorded at cost and are depreciated on a straight-line basis over their estimated useful life. Useful lives assigned to property and equipment are as follows: Laboratory equipment 3 years to 5 years Prototype equipment 3 years Computer hardware 3 years Furniture and fixtures 3 years Office equipment 3 years to 5 years Leasehold improvements Shorter of estimated useful life or remaining lease term When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized as income or loss for the period. Maintenance and repairs are charged to operating expense in the period incurred. Impairment of Long-Lived Assets The Company periodically reviews its long-lived assets, including property and equipment, for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. With respect to property and equipment, the Company compares the carrying value of the long-lived assets with the estimated future net undiscounted cash flows expected to result from the use and eventual disposition of the asset (or asset group). Should the sum of the estimated future net undiscounted cash flows be less than the carrying value, the Company would recognize an impairment loss as of that date. An impairment loss would be measured by comparing the amount by which the carrying value exceeds the fair value of the long-lived assets. No impairment of long-lived assets was recorded in any of the periods presented. Leases The Company determines if an arrangement includes a lease at inception by assessing whether there is an identified asset and whether the contract conveys the right to control the use of the identified asset for a period of time in exchange for consideration. Operating leases with a term of more than one year are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities on the Company's consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments. Operating lease ROU assets and liabilities are recognized on the lease commencement date based on the present value of the future minimum lease payments over the lease term. The Company uses the incremental borrowing rate commensurate with the lease term based on the information available at the lease commencement date in determining the present value of the lease payments as the Company's leases generally do not provide an implicit rate. ROU assets initially equal the lease liability, adjusted for any prepaid lease payments and initial direct costs incurred, less any lease incentives received. Certain of the Company's leases include renewal options which allow the Company to, at its election, renew or extend the lease for a fixed or indefinite period of time. These renewal periods are included in the lease terms when the Company is reasonably certain the options will be exercised. Lease expense is recognized on a straight-line basis over the lease term when leases are operating leases. If it is considered a finance lease, expense is recognized over the lease term within 95 Nautilus Biotechnology, Inc. Notes to Consolidated Financial Statements—(Continued) interest expense and amortization in the Company’s consolidated statements of operations. The Company also has lease arrangements with lease and non-lease components. The Company elected the practical expedient not to separate non-lease components from lease components for the Company's facility leases and to account for the lease and non-lease components as a single lease component. The Company also elected to apply the short-term lease measurement and recognition exemption in which ROU assets and lease liabilities are not recognized for leases with terms of 12 months or less. Income Taxes The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are provided if, based upon the weight of available evidence, it is more likely than not that some or all of the net deferred tax assets will not be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and recent results of operations, primarily over the most recent three-year period. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained upon an audit. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being recognized. Changes in recognition or measurement are reflected in the period in which the change in judgement occurs. Research and Development Costs for research and development activities are expensed in the period in which they are incurred. Research and development expenses consist of costs incurred in performing research and development activities, including salaries, bonuses, stock-based compensation, and employee benefits for product development personnel, laboratory supplies and equipment, depreciation and amortization, external costs of vendors engaged to conduct research and development activities, acquired in-process research and development, and allocated expenses for technology and facilities. As part of the process of preparing its financial statements, the Company estimates its accrued expenses . This process involves reviewing quotations and contracts, identifying services that have been performed on the Company’s behalf and estimating the level of services performed and the associated cost incurred for services for which the Company has not yet been invoiced or otherwise notified of the actual cost. The majority of the Company’s service providers invoice monthly in arrears for services performed or when contractual milestones are met. The Company makes estimates of its accrued expenses at the end of each reporting period based on the facts and circumstances known to the Company at that time. The significant estimates in the Company’s accrued research and development expenses relate to expenses incurred with respect to academic research centers and other vendors in connection with research and development activities for which the Company has not yet been invoiced. Stock-based Compensation The Company accounts for stock-based compensation expense by calculating the estimated fair value of each employee and non-employee award at the grant date or modification date by applying the Black-Scholes option pricing model (the “model”). The model utilizes the NASDAQ closing price of the Company’s common stock at the measurement date, the expected or contractual term of the option, the expected stock price volatility, risk-free interest rates, and expected dividend yield of the common stock. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period, which is generally the vesting period. Forfeitures are recognized in the period in which the forfeiture occurs. The Company classifies stock-based compensation expense in its statement of operations in the same manner in which the award recipient’s payroll costs are classified or in 96 Nautilus Biotechnology, Inc. Notes to Consolidated Financial Statements—(Continued) which the award’s recipient’s service payments are classified. The Company’s stock-based compensation programs include stock options grants, as well as shares issued under its 2021 Employee Stock Purchase Plan. The Company calculates the expected term as the mid-point between the requisite service period and the contractual term of the award. The Company bases its estimate of expected volatility on the historical volatility of comparable public companies from a representative peer group selected based on industry, financial, and market capitalization data. The Company has never declared or paid any dividends and does not currently expect to do so in the future. The risk-free interest rate used in the model is based on the implied yield currently available in the U.S. Treasury securities at maturity with an equivalent term. Comprehensive Loss Comprehensive loss consists of net loss and other gains or losses affecting stockholders’ equity that, under U.S. GAAP are excluded from net loss. For the years ended December 31, 2024 and 2023, unrealized gains and losses on marketable debt securities were included as a component of comprehensive loss. Net Loss per Share Attributable to Common Stockholders Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common stock outstanding during the period, without consideration of potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common stock and potentially dilutive securities outstanding for the period. For the purposes of the diluted net loss per share calculation, stock options and shares to be purchased from the Employee Stock Purchase Plan are considered to be potentially dilutive securities. The net loss is attributed entirely to the Company’s common stockholders. Since the Company has reported a net loss for all periods presented, diluted net loss per common share is the same as basic net loss per common share for those periods. Accounting Pronouncements The Company is provided the option to adopt new or revised accounting guidance as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) either (1) within the same periods as those otherwise applicable to public business entities, or (2) within the same time periods as non-public business entities, including early adoption when permissible. With the exception of standards the Company elected to early adopt, when permissible, the Company has elected to adopt new or revised accounting guidance within the same time period as non-public business entities, as indicated below. Recently Adopted Accounting Standards In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which amends existing guidance on segment reporting to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. The ASU is effective for the Company for the fiscal year ending December 31, 2024 and for interim periods beginning after December 31, 2024. The Company adopted the ASU during the fiscal year ended December 31, 2024 and the related disclosure requirements are included in Note 10, “Segment Information.” Recently Issued Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” to enhance the transparency and decision usefulness of income tax disclosures. The ASU is effective for the Company for the fiscal year ending December 31, 2025. The Company is in the process of evaluating the impact of the adoption of this Accounting Standards Update on its consolidated financial statements and related disclosures. The Company does not anticipate adoption to have a material impact on its consolidated financial statements and related disclosures. 97 Nautilus Biotechnology, Inc. Notes to Consolidated Financial Statements—(Continued) In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40). The amendments in this update require disclosure, in the notes to financial statements, of specified information about certain costs and expenses. The ASU is effective for the Company for the fiscal year ending December 31, 2027 and for interim periods beginning after December 31, 2027. The Company is in the process of evaluating the impact of the adoption of this Accounting Standards Update on its consolidated financial statements and related disclosures. 3. Fair Value Measurements The following table details the assets carried at fair value and measured on a recurring basis within the three levels of fair value as of December 31, 2024 and 2023: (in thousands) Gross Unrealized Reported as: December 31, 2024 Amortized Cost Gains Losses Fair Value Cash equivalents Short-term investments Long-term investments Level 1 Mutual funds $ 521 $ — $ — $ 521 $ 521 $ — $ — U.S. treasury securities 68,529 138 ( 111 ) 68,556 — 25,836 42,720 Total Level 1 69,050 138 ( 111 ) 69,077 521 25,836 42,720 Level 2 Commercial paper 30,881 3 ( 6 ) 30,878 26,924 3,954 — Agency securities 106,109 210 ( 177 ) 106,142 — 72,457 33,685 Total Level 2 136,990 213 ( 183 ) 137,020 26,924 76,411 33,685 Total Level 1 and Level 2 $ 206,040 $ 351 $ ( 294 ) $ 206,097 $ 27,445 $ 102,247 $ 76,405 (in thousands) Gross Unrealized Reported as: December 31, 2023 Amortized Cost Gains Losses Fair Value Cash equivalents Short-term investments Long-term investments Level 1 Mutual funds $ 590 $ — $ — $ 590 $ 590 $ — $ — U.S. treasury securities 74,115 104 ( 247 ) 73,972 — 50,638 23,334 Total Level 1 74,705 104 ( 247 ) 74,562 590 50,638 23,334 Level 2 Commercial paper 18,653 — ( 9 ) 18,644 18,644 — — Corporate debt securities 6,950 — ( 37 ) 6,913 — 6,913 — Agency securities 163,849 358 ( 424 ) 163,783 — 96,470 67,313 Total Level 2 189,452 358 ( 470 ) 189,340 18,644 103,383 67,313 Total Level 1 and Level 2 $ 264,157 $ 462 $ ( 717 ) $ 263,902 $ 19,234 $ 154,021 $ 90,647 Short-term investments have a contractual maturity date that is one year or less from the respective balance sheet date. Long-term investments have a contractual maturity date that is more than one year, but less than two years from the respective balance sheet date. The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of December 31, 2024 and December 31, 2023 are as follows: 98 Nautilus Biotechnology, Inc. Notes to Consolidated Financial Statements—(Continued) (in thousands) Securities in Unrealized Loss Position Less than 12 months Securities in Unrealized Loss Position Greater than 12 months Total December 31, 2024 Gross Unrealized Losses Fair Market Value Gross Unrealized Losses Fair Market Value Gross Unrealized Losses Fair Market Value U.S. treasury securities $ 111 $ 25,804 $ — $ — $ 111 $ 25,804 Commercial paper 6 28,895 — — 6 28,895 Agency securities 176 32,873 1 5,000 177 37,873 Total $ 293 $ 87,572 $ 1 $ 5,000 $ 294 $ 92,572 (in thousands) Securities in Unrealized Loss Position Less than 12 months Securities in Unrealized Loss Position Greater than 12 months Total December 31, 2023 Gross Unrealized Losses Fair Market Value Gross Unrealized Losses Fair Market Value Gross Unrealized Losses Fair Market Value U.S. treasury securities $ 85 $ 20,408 $ 162 $ 30,230 $ 247 $ 50,638 Commercial paper 9 18,644 — — 9 18,644 Corporate debt securities 37 6,913 — — 37 6,913 Agency securities 229 85,039 195 25,704 424 110,743 Total $ 360 $ 131,004 $ 357 $ 55,934 $ 717 $ 186,938 The Company reviewed its investment portfolio based on the underlying risk profile of the securities and have no loss expectation for these investments. The Company reviewed the securities in an unrealized loss position and evaluated the current expected credit loss by considering factors such as historical experience, market data, issuer-specific factors, and current economic conditions. The Company recognized no credit losses during the years ended December 31, 2024 and 2023, and had no allowance for credit losses as of December 31, 2024 and 2023. 4. Composition of Certain Consolidated Financial Statement Line Items Property and Equipment, Net Property and equipment consisted of the following: (in thousands) December 31, 2024 December 31, 2023 Laboratory equipment $ 6,469 $ 6,337 Leasehold improvements 118 118 Computer hardware 484 222 Furniture, fixtures and office equipment 324 324 Prototype equipment 2,029 996 Construction in progress 1,186 904 10,610 8,901 Less: Accumulated depreciation ( 6,534 ) ( 4,634 ) Total $ 4,076 $ 4,267 The Company recorded $ 2.0 million and $ 1.8 million of depreciation expense for the years ended December 31, 2024 and 2023, respectively, which was primarily allocated to research and development expense. 99 Nautilus Biotechnology, Inc. Notes to Consolidated Financial Statements—(Continued) Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following: (in thousands) December 31, 2024 December 31, 2023 Employee compensation $ 1,343 $ 2,590 Accrued research and development 468 731 Accrued professional and consulting fees 219 245 Other 518 379 Total $ 2,548 $ 3,945 Cash, Cash Equivalents and Restricted Cash Cash, cash equivalents and restricted cash consisted of the following: (in thousands) December 31, 2024 December 31, 2023 Cash and cash equivalents $ 27,646 $ 19,397 Restricted cash included in other long-term assets 1,002 1,002 Total $ 28,648 $ 20,399 Other long-term assets consisted of $ 1.0 million of restricted cash and $ 0.2 million of deposits as of December 31, 2024 and December 31, 2023. 5. Common Stock There were 126,106,176 shares issued and outstanding as of December 31, 2024. Common Stock Reserved for Future Issuance Shares of common stock reserved for future issuance on an as-if converted basis, were as follows: December 31, 2024 December 31, 2023 Shares available for grant under 2021 Equity Incentive Plan 23,784,439 20,279,560 Stock options issued and outstanding 16,634,775 14,676,335 Shares available for grant under 2021 Employee Stock Purchase Plan 4,508,360 3,505,138 Total shares of common stock reserved 44,927,574 38,461,033 6. Income Taxes The Company is liable for income taxes in the United States. For the years ended December 31, 2024 and 2023, the Company did not have any income for income tax purposes and therefore, no tax liability or expense has been recorded in these financial statements. The difference between the tax at the statutory federal tax rate and no tax provision recorded by the Company is primarily due to the Company’s full valuation allowance against its deferred tax assets. 100 Nautilus Biotechnology, Inc. Notes to Consolidated Financial Statements—(Continued) A reconciliation between the expected income tax provision at the federal statutory rate and the reported income tax provision is approximately as follows: (in thousands) Year Ended December 31, 2024 Year Ended December 31, 2023 Federal income tax at statutory rate $ ( 14,864 ) $ ( 13,372 ) State income tax, net of federal benefit ( 4,816 ) ( 4,027 ) Equity-based Compensation 1,566 2,423 Tax credits generated in current year ( 2,091 ) ( 2,075 ) Valuation allowance change 20,167 17,011 Other 38 40 Total $ — $ — As of December 31, 2024, the Company had federal net operating loss carryforwards of $ 0.5 million that begin to expire in 2037 and federal net operating loss carryforwards of $ 105.1 million that arose after the 2017 tax year that will carryforward indefinitely and will be subject to the 80% of taxable income limitation. The Company has state net operating loss carryforwards of $ 150.4 million that will begin to expire in 2037. As of December 31, 2024, the Company had research and development tax credit carryover of $ 9.4 million and $ 6.3 million for federal and state tax purposes, respectively. If not utilized, the federal carryforward will expire in various amounts beginning in 2039. The California credits can be carried forward indefinitely. The Company has evaluated the positive and negative evidence bearing upon its ability to realize the deferred tax assets. Management has considered the Company’s history of cumulative net losses incurred since inception and its lack of revenue since inception and has concluded that it is more likely than not that the Company will not realize the benefits of the deferred tax assets. Accordingly, the Company has provided a full valuation allowance against the net deferred tax assets. The valuation allowance increased by $ 20.2 million during the year ended December 31, 2024. Management reevaluates the positive and negative evidence at each reporting period. Deferred income taxes reflect the net tax effects of loss and credit carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Components of the Company’s deferred tax assets are as follows: (in thousands) December 31, 2024 December 31, 2023 Deferred tax assets Depreciation and amortization $ 4,287 $ 6,508 Capitalized research and development 23,844 16,502 Loss carryforwards 32,740 21,617 Lease liabilities 8,158 9,213 Tax credit carryforwards 11,526 8,438 Equity-based compensation 5,330 4,196 Other accruals and reserves 59 424 Total deferred tax assets 85,944 66,898 Valuation allowance for deferred tax assets ( 78,381 ) ( 58,215 ) Total deferred tax assets, net of valuation allowance $ 7,563 $ 8,683 Deferred tax liability Right-of-use assets ( 7,563 ) ( 8,683 ) Net deferred tax assets (liability) $ — $ — 101 Nautilus Biotechnology, Inc. Notes to Consolidated Financial Statements—(Continued) The Company began to file income tax returns in the United States in 2017. All tax years are open to examination. A valuation allowance of $ 78.4 million and $ 58.2 million at December 31, 2024 and 2023, respectively, has been recognized to offset net deferred tax assets where realization of such net deferred tax assets is determined to be more likely than not to not be realized. The valuation allowance increased by $ 20.2 million in 2024 and increased by $ 17.0 million in 2023, which was primarily due to changes in our deferred tax asset balances. The increases in the valuation allowance in 2024 and 2023 was primarily due to the net operating loss and tax credit generation, capitalized research and development expense and stock-based compensation. The Company had an unrecognized tax benefit balance of $ 3.1 million and $ 2.4 million related to research and development credits and California net operating loss carryforward as of December 31, 2024 and 2023, respectively. No amount of unrecognized tax benefits as of December 31, 2024, if recognized, would reduce the Company’s effective tax rate because the benefits would be in the form of tax credit carryforwards, which would be reduced to $ 0 by a full valuation allowance. There are no provisions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within 12 months of the reporting date. Because the statute of limitations does not expire until after the net operating loss and credit carryforwards are actually used, the statutes are still open on calendars years ending 2017 forward for federal and state purposes. A reconciliation of the beginning and ending amount of the liability for uncertain tax positions, excluding potential interest and penalties, is as follows: (in thousands) December 31, 2024 December 31, 2023 Beginning balance $ 2,365 $ 1,544 Increase based on current year tax positions 838 812 Increase (decrease) for prior year tax positions ( 57 ) 9 Ending balance $ 3,146 $ 2,365 Net operating loss and tax credit carry-forwards are subject to review and possible adjustment by the Internal Revenue Service (the “IRS”) and may become subject to an annual limitation in the event of certain cumulative changes in the ownership interest of significant stockholders over a three-year period in excess of 50% as defined under Sections 382 and 383 in the Code, which could limit the amount of tax attributes that can be utilized annually to offset future taxable income or tax liabilities. The amount of the annual limitation is determined based on the Company’s value immediately prior to the ownership change. Subsequent ownership changes may further affect the limitation in future years. The Company has not, as yet, conducted a study to determine if any such changes have occurred that could limit its ability to use the net operating loss and tax credit carryforwards. 7. Equity Incentive Plans and Stock-based Compensation On June 8, 2021, the stockholders of the Company approved the 2021 Equity Incentive Plan (“2021 Plan”) and the 2021 Employee Stock Purchase Plan ( “2021 ESPP”). As of December 31, 2024 , 23,784,439 and 4,508,360 shares were available for grant under the 2021 Plan and 2021 ESPP, respectively. 2021 Employee Stock Purchase Plan Under the 2021 ESPP, participants are permitted to purchase shares of Common Stock, up to the IRS allowable limit, through contributions (in the form of payroll deductions or otherwise to the extent permitted by the administrator of the 2021 ESPP) of up to 15 % of their eligible compensation. Participants are permitted to purchase shares of the Company’s Common Stock at 85 % of the lower of the fair market value of the Company’s Common Stock on the first trading day of an offering period or on the last trading date in each purchase period. The Company offers a six-month purchase period. Participants may end their participation at any time during an offering and will be paid their accrued contributions that have not yet been used to purchase shares. Participation ends automatically upon termination of employment with the Company. The number of shares of common stock available for issuance under the 2021 ESPP will be increased on the first day of each fiscal year, in an amount equal to the least of (i) 102 Nautilus Biotechnology, Inc. Notes to Consolidated Financial Statements—(Continued) 3,734,500 shares of common stock, (ii) a number of s hares of common stock equal to one percent ( 1 %) of the total number of shares of all classes of common stock of the Company on the last day of the immediately preceding fiscal year, or (iii) such number of shares determined by the Administrator no later than the last day of the immediately preceding fiscal year. 2021 Equity Incentive Plan Under the 2021 Plan, the Company can grant incentive stock options, nonstatutory stock options, stock appreciation rig hts, restricted stock, restricted stock units and performance awards to employees, non-employee directors and consultants. Options generally expire ten years after the date of grant. The number of shares available for issuance under the 2021 Plan will be increased on the first day of each fiscal year, in an amount equal to the least of (i) 18,672,200 shares, (ii) a number of shares equal to five percent ( 5 %) of the total number of shares of all classes of common stock of the Company outstanding on the last day of the immediately preceding fiscal year, or (iii) such number of shares determined by the Administrator no later than the last day of the immediately preceding fiscal year. 2017 Equity Incentive Plan At the time of adoption of the 2021 Plan and the 2021 ESPP, no further awards will be granted under the 2017 Equity Incentive Plan (“2017 Plan”). Stock-based awards forfeited or cancelled from the 2017 Plan are returned to the pool of shares of Common Stock available for issuance under the 2021 Plan. Grant Date Fair Value of Stock Options In determining the compensation cost of the option awards, the fair value for each option award has been estimated using the Black Scholes model. The significant assumptions used in these calculations are summarized as follows: Year Ended December 31, 2024 Year Ended December 31, 2023 Expected term (in years) 5.3 - 6.1 5.3 - 6.4 Expected volatility 99.7 % - 101.6 % 102.7 % - 107.5 % Expected dividend rate 0.0 % 0.0 % Risk free interest rate 3.4 % - 4.6 % 3.5 % - 4.8 % Expected term: The expected term of stock options represents the weighted-average period the stock options are expected to remain outstanding. The Company does not have sufficient historical exercise and post-vesting termination activity to provide accurate data for estimating the expected term of options and has opted to use the “simplified method,” whereby the expected term equals the arithmetic average of the vesting term and the original contractual term of the option. Expected volatility: Historically, the Company has been a private company and lacked company‑specific historical and implied volatility information for its common stock. Therefore, the expected volatility of the Company’s common stock was determined by using an average of historical volatilities of selected industry peers deemed to be comparable to the Company’s business corresponding to the expected term of the awards and the Company expects to continue to do so until such time as the Company has adequate historical data regarding the volatility of its traded common stock price. Expected dividend yield: The expected dividend rate is zero as the Company has no history or expectation of declaring dividends on its common stock. Risk-free interest rate: The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero-coupon U.S. Treasury notes with maturities corresponding to the expected term of the awards. 103 Nautilus Biotechnology, Inc. Notes to Consolidated Financial Statements—(Continued) The following table summarizes option award activity during the year ended December 31, 2024: Number of Stock Option Awards Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2023 14,676,335 $ 3.63 Granted 4,108,900 $ 2.68 Exercised ( 790,111 ) $ 0.78 Forfeited ( 1,360,349 ) $ 3.11 Outstanding as of December 31, 2024 16,634,775 $ 3.57 7.4 $ 2,389 Options vested and expected to vest as of December 31, 2024 16,634,775 $ 3.57 Vested and exercisable at December 31, 2024 10,169,730 $ 4.02 6.6 $ 2,371 As of December 31, 2024, there was $ 13.2 million of total unrecognized compensation expense expected to be recognized over a weighted average-period of 2.3 years. The total intrinsic value of options exercised during the years ended December 31, 2024 and 2023 was $ 1.3 million and $ 0.1 million, respectively. Aggregate intrinsic value represents the difference between the fair market value of the common stock and the exercise price of outstanding, in-the-money options. The weighted-average grant-date fair value of options granted during the years ended December 31, 2024 and 2023 was $ 2.16 and $ 1.98 per share, respectively. Stock-based Compensation Expense The following sets forth the total stock-based compensation expense for the Company’s stock options and ESPP included in the Company’s consolidated statements of operations: (in thousands) Year Ended December 31, 2024 Year Ended December 31, 2023 Research and development $ 4,626 $ 4,199 General and administrative 8,075 7,938 Total stock-based compensation expense $ 12,701 $ 12,137 8. Commitments and Contingencies Purchase Commitments Open purchase commitments are for the purchase of goods and services related to, but not limited to, research and development, facilities, and professional services under non-cancellable contracts. They were not recorded as liabilities on the consolidated balance sheet as of December 31, 2024 as the Company had not yet received the related goods or services. As of December 31, 2024, the Company had open purchase commitments for goods and services of $ 1.7 million, of which $ 1.3 million are expected to be received through the next 12 months. Legal Proceedings U.S. District Court Proceedings On December 14, 2023, we filed suit in the United States District Court for the Northern District of California (the “Court”) against Somalogic, Inc. (Somalogic) which recently merged with and is now part of “Standard Biotools, Inc.,” and the California Institute of Technology. This suit sought declaratory judgment that Nautilus does not infringe any claims of US Patent No. 7,842,793 related to DNA origami structures (the ‘793 Patent), which Somalogic had allegedly licensed from the California Institute of Technology through its purchase of Palamedrix, 104 Nautilus Biotechnology, Inc. Notes to Consolidated Financial Statements—(Continued) Inc. On November 19, 2024, the Company, Standard Biotools, Inc., and the California Institute of Technology agreed to dismiss the suit and settle any and all disputes and/or claims related to the suit. Leases The Company is obligated under certain non-cancellable operating leases for office space and laboratory space. This space includes operating leases in Seattle, Washington, San Carlos, California, and San Diego, California. Seattle Lease In July 2021, the Company entered into a 7-year non-cancellable operating lease, which commenced in August 2021, for office space in Seattle, Washington. Total non-cancellable payments under this lease aggregate $ 4.5 million through June 2028. San Carlos Leases In December 2020, the Company entered into a new lease in San Carlos, California for ten years which commenced in October 2021 and expiring in October 2031 with total minimum lease payments of $ 40.7 million. In December 2021, the Company entered into another lease in San Carlos, California for nine years commencing in March 2023. The Company can terminate this lease after five years from the commencement date without bearing any significant termination penalties and therefore the Company concluded that the lease term is five years with total minimum lease payments of $ 7.2 million. The Company utilized $ 2.0 million from the landlord with an interest rate of 7 % to finance its tenant improvements. The principal and interest payments are included in the payments used to measure the lease liability. San Diego Lease In November 2022, the Company entered into a lease in San Diego, California for 39 months commencing in December 2022. Total non-cancellable payments under this lease aggregate $ 2.1 million through March 2026. The components of lease costs which were included in operating expenses in the consolidated statements of operations were as follows: (in thousands) Year Ended December 31, 2024 Year Ended December 31, 2023 Fixed operating lease costs $ 7,233 $ 6,893 Variable operating lease costs 2,904 2,432 Total lease costs $ 10,137 $ 9,325 105 Nautilus Biotechnology, Inc. Notes to Consolidated Financial Statements—(Continued) For the years ended December 31, 2024 and 2023, cash paid for amounts included in the measurement of operating lease liabilities included in cash flows used in operating activities was $ 7.0 million and $ 6.2 million, respectively. As of December 31, 2024, the weighted-average remaining lease term and weighted-average discount rate for operating leases was 5.8 years and 9.1 %, respectively. The following table summarizes the Company's future principal contractual obligations for operating lease commitments as of December 31, 2024: (in thousands) Year Ended December 31, Lease Obligations 2025 $ 6,588 2026 6,874 2027 6,889 2028 5,816 2029 and thereafter 13,208 Total future minimum lease payments 39,375 Less: Imputed interest ( 8,897 ) Total operating lease liabilities $ 30,478 Indemnification Agreements 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 an indemnified party 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 indemnifications 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. The Company has never incurred material costs to defend lawsuits or settle claims related to these indemnification provisions. The Company has also agreed to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by them in any action or proceeding to which any of them are, or are threatened to be, made a party by reason of their service as a director or officer. The Company maintains director and officer insurance coverage that would generally enable it to recover a portion of any future amounts paid. The Company may be subject to indemnification obligation by law with respect to the actions of its employees under certain circumstances and in certain jurisdictions. 9. Basic and Diluted Net Loss per Share The following tables set forth the computation of the Company’s basic and diluted net loss per share attributable to common stockholders for the years ended December 31, 2024 and 2023: (in thousands, except share and per share data) Year Ended December 31, 2024 Year Ended December 31, 2023 Numerator: Net loss attributable to common stockholders $ ( 70,780 ) $ ( 63,675 ) Denominator: Weighted average shares used in computing net loss per share attributable to common stockholders, basic and diluted 125,426,509 124,919,144 Net loss per share attributable to common stockholders, basic and diluted: $ ( 0.56 ) $ ( 0.51 ) 106 Nautilus Biotechnology, Inc. Notes to Consolidated Financial Statements—(Continued) The potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have had an antidilutive effect were as follows: Year Ended December 31, 2024 Year Ended December 31, 2023 Options to purchase common stock 16,634,775 14,676,335 Employee stock purchase plan 144,928 141,720 Total potentially dilutive common share equivalents 16,779,703 14,818,055 10. Segment Information The Company’s Chief Executive Officer is its CODM. The Company’s CODM uses GAAP net loss in assessing operating decisions, allocating resources and evaluating financial performance. The Company identified the following significant segment expenses for its single reportable segment: (in thousands) Year Ended December 31, 2024 Year Ended December 31, 2023 Significant Segment Expenses: Payroll-related expenses $ 33,502 $ 31,609 Professional services and laboratory expenses 17,716 16,397 Stock-based compensation expense 12,701 12,137 Facilities expenses 10,902 10,285 Other segment items (1) 6,655 5,724 Total Segment Expenses 81,476 76,152 Reconciliation to net loss: Interest income ( 10,780 ) ( 12,550 ) Other expense 84 73 Net Loss $ 70,780 $ 63,675 Footnotes: (1) Other segment items for the Company’s single reportable segment include travel and entertainment, insurance, tax, expensed computer hardware and software, depreciation, and other miscellaneous expenses. 107 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosures None.