10x Genomics, Inc. Class A Common Stock

Capital structure and performance · Financial reporting and accounting risks

If our estimates or judgments relating to our critical accounting policies are based on assumptions that change or prove to be incorrect, our operating results could fall below our publicly announced guidance or the expectations of securities analysts and investors.

Capital structure and performance · Financial performance volatility

Our quarterly and annual operating results may fluctuate significantly, which makes it difficult for us to predict our future operating results. These fluctuations may occur due to a variety of factors, many of which are outside of our control, including, but not limited to: delays in, changes in terms of, reductions of or cancellations of U.S. academic and government research funding.

International and currency · Emerging markets exposure

Our business in China subjects us to unique commercial, operational, competitive and regulatory risks. Economic conditions in China, our dependence on local distributors and other third parties to commercialize our products in China.

Strategic execution · Merger acquisition and divestiture risks

Investments and acquisitions could disrupt our business, cause dilution to our stockholders and otherwise harm our business. We regularly review investment, acquisition and technology licensing opportunities, and we may invest in or acquire additional real estate or additional businesses.

Innovation and product development · Intellectual property protection and infringement

Our success will depend on our ability to obtain, maintain and protect our intellectual property rights. We rely on a combination of contractual provisions, confidentiality procedures and patent, trademark, copyright, trade secret and other intellectual property laws to protect the proprietary aspects of our products.

Market position and competition · Competitive pressure and market share loss

We face significant competition. We currently compete with both established and early-stage companies that have introduced products for, among other things, genomics analysis, single cell analysis, spatial analysis and in situ analysis. Some of these companies may have substantially greater financial and other resources than we do.

Geopolitical and trade · Government funding and budget changes

A substantial portion of our revenue is derived from sales to academic institutions, research organizations and other entities that rely heavily on U.S. academic and government funding, including grants from the NIH and other government agencies. Government funding is subject to annual appropriations and budgetary constraints, and there is no assurance that such funding will continue at current levels or at all.

Natural and catastrophic events · Pandemic and public health crises

Many other factors could cause production or shipping delays or interruptions, including difficulties in transporting materials, equipment, raw material or other shortages, infectious disease, conflict, war, civil unrest, epidemics or pandemics.

Data and privacy · Data protection and privacy laws

We collect, process, store, share, disclose and use personal information and other data, which subjects us to governmental regulations and other legal obligations related to privacy and security. The global data protection landscape is rapidly evolving and new laws and regulations are constantly being enacted.

Data and privacy · Cross border data transfer regulations

The GDPR regulates transfers of personal data subject to the GDPR to third countries outside the EEA or UK that have not been found to provide adequate protection to such personal data, including the United States.

Legal and litigation · Litigation and legal proceedings

We may become a party to intellectual property litigation or administrative proceedings that could be expensive, time-consuming, unsuccessful, and could interfere with our ability to develop, manufacture and commercialize our products or technologies.

Industry regulation · Fda drug and device approval

Our products, if used for the diagnosis of disease or in other clinical settings, would likely be subject to government regulation, and the regulatory approval and maintenance process for such products may be expensive, time-consuming and uncertain both in timing and in outcome.

Stakeholder relations · Investor relations and market confidence

We may fail to meet our publicly announced guidance or other expectations about our business, which could cause our stock price to decline. Our guidance is based on a number of assumptions and does not reflect all possible impacts to our business.

Stakeholder relations · Customer satisfaction and loyalty

If we fail to offer high-quality customer service, our business and reputation could suffer. We differentiate ourselves from our competition in part through our commitment to an exceptional customer experience.

Corporate governance · Internal controls and risk management

If we fail to maintain an effective system of disclosure controls and internal control over financial reporting, our ability to produce timely and accurate financial statements or comply with applicable regulations could be impaired. We are continuing to develop and refine our disclosure controls and other procedures.

Reputation and brand · Brand damage and negative publicity

The illegal distribution and sale by third parties of stolen, counterfeit or unfit versions of our products could have a negative impact on our reputation and business. A researcher who receives and uses counterfeit instruments, consumables or data could obtain erroneous results.

Human capital and workforce · Skills shortage and training requirements

Many of our scientific personnel in the United States are qualified foreign nationals whose ability to live and work in the United States is contingent upon the continued availability of appropriate visas. Changes to United States immigration policies could restrain the flow of technical and professional talent into the United States.

Supply chain and procurement · Supplier operation and dependance

We and our customers are dependent on single source and sole source suppliers for some of the equipment, components and materials used in our products and in conjunction with our products and the loss of any of these suppliers could harm our business.

Human capital and workforce · Talent acquisition and retention

We depend on our key personnel and other highly qualified personnel, and if we are unable to recruit, train, retain and ensure the health and safety of our personnel, we may not achieve our goals. Competition for qualified personnel is intense, particularly in the San Francisco Bay Area.

Digital transformation and innovation · Artificial intelligence and automation

AI and machine learning technologies may expose us to significant risks, including development and deployment challenges, regulatory uncertainties, competition for investor research and potential hard-to-predict changes to our business. We use artificial intelligence and machine learning technologies in our business.