Simultaneously with the Agreement (see Note 6, Asset Acquisition), the Company entered into separate agreements with third-party investors to purchase shares of Series B Preferred Stock of Invenra for a consideration of $13.8 million to be settled by the issuance of the shares of the Company's common stock. The Company concluded that while Invenra is a variable interest entity ("VIE"), the Company is not the primary beneficiary of Invenra as the Company does not have the power, whether through contractual relationships or other factors, to direct the activities that most significantly impact the economic performance of Invenra. Therefore, the Company did not consolidate Invenra. The investment also did not qualify for the equity method of accounting because the Series B Preferred Stock has substantive liquidation preferences and is not considered in-substance common stock. Accordingly, the investment is accounted for as an investment in equity securities of a privately held company. The investment was recorded at $13.8 million, consisting of an upfront issuance of shares of the Company's common stock of $10.0 million at initial closing and a subsequent issuance of the Company's common stock of $3.8 million on April 6, 2026 which were issued on April 7, 2026.

In May 2025, the Company sold its DNA digital data storage business to Atlas Biosciences, Inc. ("Atlas") in exchange for 73.0 million shares of Atlas Series Seed-1 Preferred Stock, $2.5 million in cash, $2.0 million in promissory notes, contingent milestone payments of up to $75.0 million, and royalties on Atlas DNA data storage sales. The Company recorded a $48.8 million gain on the sale in fiscal year 2025.

The Company holds investments in other privately-held companies in the form of equity securities without readily determinable fair values. The Company concluded that these entities are VIEs and the Company holds variable interests in these VIEs but is not their primary beneficiary and therefore does not consolidate them. These entities also do not meet the requirements of equity method of accounting.

The Company elected to account for its investment in privately-held companies using the measurement alternative method. Under the measurement alternative, these investments are carried at cost, less any impairment, and adjusted for observable price changes from orderly transactions for identical or similar investments of the same issuer. There were no upward or downward adjustments for observable price changes or impairment charges recorded during the three and nine months ended June 30, 2026 and June 30, 2025 related to these equity securities.


(in thousands)	Financial statements line item	June 30, 2026		September 30, 2025
Assets
Other receivables[1]	Prepaid and other current assets	$	2	$	290
Asset acquisition purchase consideration	Prepaid and other current assets	20,000		—
Investments[2]	Investment in equity securities	68,087		54,337
Promissory note receivable[1]	Other non-current assets	1,952		1,783
Total assets		$	90,041	$	56,410
Liabilities
Liability for issuance of shares of common stock	Accrued expenses and other current liabilities	$	5,000	$	—
Sublease security deposit[1]	Other non-current liabilities	170		170
Total liabilities		$	5,170	$	170
Maximum exposures to VIEs		$	90,041	$	56,410