UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2024.
____________________________________
Commission File Number: 001-40627
SOPHiA GENETICS SA
(Exact name of registrant as specified in its charter)
Rue du Centre 172
CH-1025 Saint-Sulpice
Switzerland
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-FxForm 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o


SIGNATURE
These sections, “2. Compensation of the Board of Directors” and “3. Compensation of the Members of the Executive Committee” in Exhibit 99.4 of this Report on Form 6-K shall be deemed to be incorporated by reference into the registration statement on Form F-3 (Registration No. 333-266704) of SOPHiA GENETICS SA and to be a part thereof from the date on which this report is filed, to the extent not superseded by documents or reports subsequently filed or furnished.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


SOPHiA GENETICS SA
Date: March 5, 2024
By:/s/ Daan van Well
Name:Daan van Well
Title:Chief Legal Officer
EXHIBIT INDEX




SOPHiA GENETICS Reports Fourth Quarter and Full Year 2023 Results
Strong momentum to continue in 2024 as SOPHiA GENETICS announces record revenue, 35 new customer additions in Q4, and 36% cash burn decline in FY 2023
BOSTON, United States and ROLLE, Switzerland, March 5, 2024 — SOPHiA GENETICS (Nasdaq: SOPH), a cloud-native software company and a leader in data-driven medicine, today reported financial results for its fourth quarter and fiscal year ended December 31, 2023.
Fourth Quarter 2023 Financial Highlights
•Revenue grew 27% year-over-year to $17.0 million; Constant currency revenue excluding COVID-related revenue also grew 27% year-over-year
•Gross margins were 70% on a reported basis and 73% on an adjusted basis
•Operating loss was $18.9 million on a reported basis and $13.3 million on an adjusted basis
•Change in cash and cash equivalents and term deposits (cash burn) improved 11% year-over-year to $9.5 million, compared to $10.6 million in Q4 2022, even when factoring in a credit to computational and storage-related expenses related to our strategic agreement with Microsoft in Q4 2022
Full Year 2023 Financial Highlights
•Revenue grew 31% year-over-year to $62.4 million; Constant currency revenue excluding COVID-related revenue grew 32% year-over-year
•Gross margins were 69% on a reported basis and 72% on an adjusted basis
•Operating loss was $74.8 million on a reported basis and $55.9 million on an adjusted basis, representing 15% and 22% year-over-year improvements, respectively
•Cash burn improved 36% year-over-year to $55.4 million, compared to $86.7 million in FY 2022
"We are pleased with the tremendous performance in fiscal year 2023, including 31% year-over-year revenue growth, continued gross margin expansion, and 36% year-over-year improvement in cash burn," said Jurgi Camblong, PhD., Chief Executive Officer and Co-founder. "During 2023, we were excited to see continued, widespread adoption of SOPHiA DDMTM worldwide as the Platform performed a record 317,000+ analyses across the 450 core genomics customers we serve. We are especially proud of the growth we delivered with SOPHiA DDMTM’s Solid Tumor applications, with our BioPharma partners, and in the U.S. market.”
Camblong added, "Looking forward to 2024, we are well positioned to continue delivering strong growth. SOPHiA DDMTM’s new Liquid Biopsy offering, world-class Solid Tumor applications, and the momentum we are building in the U.S. are all exciting catalysts for growth in 2024 as we continue on our path to profitability in the next 2+ years."
Business Highlights
•Performed a record 317,062 analyses on SOPHiA DDMTM in FY 2023, representing 20% year-over-year analysis volume growth including COVID-related analyses or 27% growth excluding COVID-related analyses
•Reached 450 core genomics customers as of December 31, 2023, who use SOPHiA DDMTM regularly to analyze patients with cancer and rare diseases, up from 434 customers as of December 31, 2022
•Signed a record 35 new core genomic customers in Q4 2023 who will implement SOPHiA DDMTM during 2024
•Recently signed new core genomics customers, including Lifespan Health Network, a network of award-winning hospitals in Rhode Island, U.S., and Karkinos Healthcare, a major oncology platform in India
•Built momentum in the U.S. market with 70% year-over-year revenue growth for FY 2023, 9 new U.S. core genomics signed in FY 2023, and Q4 2023 U.S. analysis volume up 51% since Q4 2022
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•Launched a new, expanded suite of Liquid Biopsy applications in December 2023, including MSK-ACCESS powered with SOPHiA DDMTM
•Continued expanding usage of SOPHiA DDMTM within existing customer by driving adoption of new applications, resulting in Net Dollar Retention of 130% in Q4 2023, up 2,800 bps from 102% at the end of FY 2022
•Announced new expanded relationships with existing customers, including Vall d'Hebron Institute of Oncology (VHIO) in Spain, one of the top comprehensive cancer centers in Europe, who added a Solid Tumor application for Homologous Recombination Deficiency (HRD) testing and Latin American healthcare network Diagnosticos da America (DASA) who adopted MSK-ACCESS powered with SOPHiA DDMTM for Liquid Biopsy testing
•Delivered strong growth in Solid Tumor applications, and in particular the HRD application, with nearly 50 HRD customers as of December 31, 2023 and over 150% year-over-year revenue growth
•Expanded our partnership with AstraZeneca to sponsor the deployment of SOPHiA DDMTM’s HRD application to additional laboratories throughout Spain
•Reaffirmed commitment to grow sustainably and achieve adjusted operating profitability in the next 2+ years
2024 Financial Outlook
Based on information as of today, SOPHiA GENETICS is providing the following guidance:
•Revenue between $78 million and $81 million, representing growth of 25% to 30% compared to full year 2023 revenue
•Adjusted gross margin between 72.5% and 72.7%, compared to 72.2% in FY 2023
•Adjusted operating loss between $45M and $50M, compared to $55.9 million in FY 2023
Other than with respect to revenue, the Company only provides guidance on a non-IFRS basis. The Company does not provide a reconciliation of forward-looking adjusted gross margin (non-IFRS measure) to gross margin (the most comparable IFRS financial measure), due to the inherent difficulty in forecasting and quantifying amortization of capitalized research & development expenses that are necessary for such reconciliation. In addition, the Company does not provide a reconciliation of forward-looking adjusted operating loss (non-IFRS measure) to operating loss (the most comparable IFRS financial measure), due to the inherent difficulty in forecasting and quantifying amortization of capitalized research & development expenses and intangible assets, share-based compensation expenses, and non-cash portion of pensions paid in excess of actual contributions, that are necessary for such reconciliation.
Earnings Call and Webcast Information
SOPHiA GENETICS will host a conference call and live webcast to discuss the fourth quarter and full year 2023 results, and financial guidance for the full year 2024 on Tuesday, March 5, 2024, at 8:00 a.m. (08:00) Eastern Time / 2:00 p.m. (14:00) Central European Time. The call will be webcast live on the SOPHiA GENETICS Investor Relations website, ir.sophiagenetics.com. Additionally, an audio replay of the conference call will be available on the SOPHiA GENETICS website after its completion.
Non-IFRS Financial Measures
To provide investors with additional information regarding the company’s financial results, SOPHiA GENETICS has disclosed here and elsewhere in this earnings release the following non-IFRS measures:
•Adjusted gross profit, which the company calculates as revenue minus cost of revenue adjusted to exclude amortization of capitalized research and development expenses;
•Adjusted gross profit margin, which the company calculates as adjusted gross profit as a percentage of revenue; and
•Adjusted operating loss, which the company calculates as operating loss adjusted to exclude amortization of capitalized research and development expenses, amortization of intangible assets,
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share-based compensation expense, non-cash portion of pensions expense paid in excess of actual contributions to match the actuarial expense, and costs associated with corporate restructuring.
These non-IFRS measures are key measures used by SOPHiA GENETICS management and board of directors to evaluate its operating performance and generate future operating plans. The exclusion of certain expenses facilitates operating performance comparability across reporting periods by removing the effect of non-cash expenses and certain variable charges. Accordingly, the company believes that these non-IFRS measures provide useful information to investors and others in understanding and evaluating its operating results in the same manner as its management and board of directors.
These non-IFRS measures have limitations as financial measures, and you should not consider them in isolation or as a substitute for analysis of SOPHiA GENETICS’ results as reported under IFRS. Some of these limitations are:
•These non-IFRS measures exclude the impact of amortization of capitalized research and development expenses and intangible assets. Although amortization is a non-cash charge, the assets being amortized may need to be replaced in the future and these non-IFRS measures do not reflect capital expenditure requirements for such replacements or for new capital expenditures;
•These non-IFRS measures exclude the impact of share-based compensation expenses. Share-based compensation has been, and will continue to be for the foreseeable future, a recurring expense in the company’s business and an important part of its compensation strategy;
•These non-IFRS measures exclude the impact of the non-cash portion of pensions paid in excess of actual contributions to match actuarial expenses. Pension expenses have been, and will continue to be for the foreseeable future, a recurring expense in the business;
•These non-IFRS measures exclude the impact of costs associated with corporate restructuring, which we may incur from time to time; and
•Other companies, including companies in the company’s industry, may calculate these non-IFRS measures differently, which reduces their usefulness as comparative measures.
Because of these limitations, you should consider these non-IFRS measures alongside other financial performance measures, including various cash flow metrics, net income and other IFRS results.
The tables below provide the reconciliation of the most comparable IFRS measures to the non-IFRS measures for the periods presented.
Presentation of Constant Currency Revenue and Excluding COVID-19-Related Revenue
SOPHiA GENETICS operates internationally, and its revenues are generated primarily in the U.S. dollar, the euro and Swiss franc and, to a lesser extent, British pound, Australian dollar, Brazilian real, Turkish lira and Canadian dollar depending on the company’s customers’ geographic locations. Changes in revenue include the impact of changes in foreign currency exchange rates. We present the non-IFRS financial measure “constant currency revenue” (or similar terms such as constant currency revenue growth) to show changes in revenue without giving effect to period-to-period currency fluctuations. Under IFRS, revenues recorded in local (non-U.S. dollar) currencies are translated into U.S. dollars at the average monthly exchange rate for the month in which the transaction occurred. When the company uses the term “constant currency”, it means that it has translated local currency revenues for the current reporting period into U.S. dollars using the same average foreign currency exchange rates for the conversion of revenues into U.S. dollars that we used to translate local currency revenues for the comparable reporting period of the prior year. The company then calculates the difference between the IFRS revenue and the constant currency revenue to yield the “constant currency impact” for the current period.
The company’s management and board of directors use constant currency revenue growth to evaluate growth and generate future operating plans. The exclusion of the impact of exchange rate fluctuations provides comparability across reporting periods and reflects the effects of customer acquisition efforts and land-and-expand strategy. Accordingly, it believes that this non-IFRS measure provides useful information to investors and others in understanding and evaluating revenue growth in the same manner as the management and board
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of directors. However, this non-IFRS measure has limitations, particularly as the exchange rate effects that are eliminated could constitute a significant element of its revenue and could significantly impact performance and prospects. Because of these limitations, you should consider this non-IFRS measure alongside other financial performance measures, including revenue and revenue growth presented in accordance with IFRS and other IFRS results.
In addition to constant currency revenue, the company presents constant currency revenue excluding COVID-19-related revenue to further remove the effects of revenues that are derived from sales of COVID-19-related offerings, including a NGS assay for COVID-19 that leverages the SOPHiA DDMTM Platform and related products and solutions analytical capabilities and COVID-19 bundled access products. SOPHiA GENETICS do not believe that these revenues reflect its core business of commercializing its platform because the company’s COVID-19 solution was offered to address specific market demand by its customers for analytical capabilities to assist with their testing operations. The company does not anticipate additional development of its COVID-19-related solution as the pandemic transitions into a more endemic phase and as customer demand continues to decline. Further, COVID-19-related revenues did not constitute, and the company does not expect COVID-19-related revenues to constitute in the future, a significant part of its revenue. Accordingly, the company believes that this non-IFRS measure provides useful information to investors and others in understanding and evaluating its revenue growth. However, this non-IFRS measure has limitations, including that COVID-19-related revenues contributed to the company’s cash position, and other companies may define COVID-19-related revenues differently. Because of these limitations, you should consider this non-IFRS measure alongside other financial performance measures, including revenue and revenue growth presented in accordance with IFRS and other IFRS results.
The table below provides the reconciliation of the most comparable IFRS growth measures to the non-IFRS growth measures for the current period.
About SOPHiA GENETICS
SOPHiA GENETICS (Nasdaq: SOPH) is a software company dedicated to establishing the practice of data-driven medicine as the standard of care and for life sciences research. It is the creator of the SOPHiA DDM™, a cloud-native Platform capable of analyzing data and generating insights from complex multimodal data sets and different diagnostic modalities. SOPHiA DDM™ and related solutions, products, and services are currently used by a broad network of hospital, laboratory, and biopharma institutions globally. For more information, visit SOPHiAGENETICS.COM, or connect on X, LinkedIn, Facebook, and Instagram. Where others see data, we see answers.
Forward-Looking Statements
This press release contains statements that constitute forward-looking statements. All statements other than statements of historical facts contained in this press release, including 2023 guidance and statements regarding our future results of operations and financial position, business strategy, products and technology, partnerships, and collaborations, as well as plans and objectives of management for future operations, are forward-looking statements. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including those described in our filings with the U.S. Securities and Exchange Commission. No assurance can be given that such future results will be achieved. Such forward-looking statements contained in this document speak only as of the date of this press release. We expressly disclaim any obligation or undertaking to update these forward-looking statements contained in this press release to reflect any change in our expectations or any change in events, conditions, or circumstances on which such statements are based, unless required to do so by applicable law. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements.
Investor Contact:
Kellen Sanger
IR@sophiagenetics.com
Media Contact:
Kelly Katapodis
media@sophiagenetics.com
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SOPHiA GENETICS SA
Consolidated Statement of Loss
(Amounts in USD thousands, except per share data)
(Unaudited)
Three months ended December 31,Year ended December 31,
    2023202220232022
Revenue$17,048 $13,384 $62,371 $47,560 
Cost of revenue(5,150)(3,753)(19,458)(16,306)
Gross profit11,898 9,631 42,913 31,254 
Research and development costs(9,759)(6,790)(36,969)(35,371)
Selling and marketing costs(7,966)(4,247)(28,423)(28,267)
General and administrative costs(13,269)(13,929)(53,301)(55,816)
Other operating income, net150 252 954 377 
Operating loss(18,946)(15,083)(74,826)(87,823)
Interest income, net811 650 3,959 684 
Foreign exchange and other losses(5,917)205 (7,628)(446)
Loss before income taxes(24,052)(14,228)(78,495)(87,585)
Income tax (expense) benefit(8)257 (486)136 
Loss for the year(24,060)(13,971)(78,981)(87,449)
Attributable to the owners of the parent(24,060)(13,971)— (78,981)(87,449)
Basic and diluted loss per share$(0.37)$(0.22)$(1.22)$(1.36)
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SOPHiA GENETICS SA
Consolidated Statement of Comprehensive Loss
(Amounts in USD thousands)
(Unaudited)
Three months ended December 31,Year ended December 31,
2023202220232022
Loss for the year$(24,060)$(13,971)$(78,981)$(87,449)
Other comprehensive income (loss):
Items that may be reclassified to statement of loss (net of tax)
Currency translation differences12,768 5,913 15,037 (4,336)
Total items that may be reclassified to statement of loss12,768 5,913 15,037 (4,336)
Items that will not be reclassified to statement of loss (net of tax)
Remeasurement of defined benefit plans71 (299)(212)2,154 
Total items that will not be reclassified to statement of loss71 (299)(212)2,154 
Other comprehensive income (loss) for the period$12,839 $5,614 $14,825 $(2,182)
Total comprehensive loss for the period$(11,221)$(8,357)$(64,156)$(89,631)
Attributable to owners of the parent$(11,221)$(8,357)$(64,156)$(89,631)
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SOPHiA GENETICS SA
Consolidated Balance Sheet
(Amounts in USD thousands)
(Audited)
December 31, 2023    December 31, 2022
Assets
Current assets 
Cash and cash equivalents$123,251 $161,305 
Term deposits— 17,307 
Accounts receivable13,557 6,649 
Inventory6,482 5,156 
Prepaids and other current assets4,757 5,838 
Total current assets148,047 196,255 
Non-current assets
Property and equipment7,469 7,129 
Intangible assets27,185 19,963 
Right-of-use assets15,635 14,268 
Deferred tax assets1,720 1,940 
Other non-current assets6,100 4,283 
Total non-current assets58,109 47,583 
Total assets$206,156 $243,838 
Liabilities and equity
Current liabilities
Accounts payable$5,391 $6,181 
Accrued expenses17,808 14,505 
Deferred contract revenue9,494 3,434 
Lease liabilities, current portion2,928 2,690 
Total current liabilities35,621 26,810 
Non-current liabilities
Lease liabilities, net of current portion15,673 14,053 
Defined benefit pension liabilities3,086 2,675 
Other non-current liabilities334 170 
Total non-current liabilities19,093 16,898 
Total liabilities54,714 43,708 
Equity
Share capital4,048 3,464 
Share premium471,846 471,623 
Treasury shares(646)(117)
Other reserves53,978 23,963 
Accumulated deficit(377,784)(298,803)
Total equity151,442 200,130 
Total liabilities and equity$206,156 $243,838 
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SOPHiA GENETICS SA
Consolidated Statement of Cash Flows
(Amounts in USD thousands)
(Audited)
Year ended December 31,
20232022
Operating activities
Loss before income tax$(78,495)$(87,585)
Adjustments for non-monetary items
Depreciation5,508 3,791 
Amortization2,828 1,780 
Finance expense (income), net2,934 (685)
Gain on TriplePoint success fee— — 
Expected credit loss allowance214 (467)
Share-based compensation15,242 13,613 
Intangible assets write-off— 73 
Movements in provisions, pensions, and government grants308 953 
Research tax credit(1,129)(1,292)
Loss on disposal of property and equipment28 — 
Gain on disposal of lease liability(733)— 
Working capital changes
(Increase) decrease in accounts receivable(6,500)1,332 
(Increase) decrease in prepaids and other assets1,375 (977)
(Increase) decrease in inventory(874)(200)
Increase (decrease) in accounts payables, accrued expenses, deferred contract revenue, and other liabilities6,871 (1,428)
Cash used in operating activities
Income tax received (paid)(801)— 
Interest paid(6)(266)
Interest received4,655 1,265 
Net cash flows used in operating activities(48,575)(70,093)
Investing activities
Purchase of property and equipment(1,494)(4,097)
Acquisition of intangible assets(263)(464)
Capitalized development costs(7,469)(5,820)
Proceeds upon maturity of term deposits and short-term investments17,546 78,533 
Purchase of term deposits and short-term investments— (26,179)
Net cash flow provided from (used in) investing activities8,320 41,973 
Financing activities
Proceeds from exercise of share options226 748 
Proceeds from issuance of share capital, net of transaction costs— — 
Proceeds from initial public offering, net of transaction costs— — 
Proceeds from greenshoe, net of transaction costs— — 
Proceeds from private placement, net of transaction costs— — 
Payment of TriplePoint success fee— — 
Proceeds from borrowings— — 
Repayments of borrowings— — 
Payments of principal portion of lease liabilities(3,043)(2,316)
Net cash flow (used in) provided from financing activities(2,817)(1,568)
Increase (decrease) in cash and cash equivalents(43,072)(29,688)
Effect of exchange differences on cash balances5,018 (1,969)
Cash and cash equivalents at beginning of the year161,305 192,962 
Cash and cash equivalents at end of the year$123,251 $161,305 
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SOPHiA GENETICS SA
Reconciliation of IFRS Revenue Growth to Constant Currency Revenue Growth
and Constant Currency Revenue Growth Excluding COVID-19-Related Revenue
(Amounts in USD thousands, expect for %)
(Unaudited)

Three months ended December 31,Year ended December 31,
20232022Growth20232022Growth
IFRS revenue$17,048 $13,384 27 %$62,371 $47,560 31 %
Current period constant currency impact(177)— (527)— 
Constant currency revenue$16,871 $13,384 26 %$61,844 $47,560 30 %
COVID-19-related revenue(106)(167)(319)(1,080)
Constant currency impact on COVID-19-related revenue5 2 — 
Constant currency revenue excluding COVID-19-related revenue$16,770 $13,217 27 %$61,527 $46,480 32 %


SOPHiA GENETICS SA
Reconciliation of IFRS to Adjusted Gross Profit and Gross Profit Margin
(Amounts in USD thousands, except percentages)
(Unaudited)
Three months ended December 31,Year ended December 31,
2023202220232022
Revenue$17,048 $13,384 $62,371 $47,560 
Cost of revenue(5,150)(3,753)(19,458)(16,306)
Gross profit$11,898 $9,631 $42,913 $31,254 
Amortization of capitalized research and development expenses (1)
619 378 2,099 1,133 
Adjusted gross profit$12,517 $10,009 $45,012 $32,387 
Gross profit margin70 %72 %69 %66 %
Amortization of capitalized research and development expenses (1)
3 %3 %3 %2 %
Damaged inventory write-off (2)
— %— %— %— %
Adjusted gross profit margin73 %75 %72 %68 %
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SOPHiA GENETICS SA
Reconciliation of IFRS to Adjusted Operating Loss
(Amounts in USD thousands)
(Unaudited)
Three months ended December 31,Year ended December 31,
2023202220232022
Operating loss$(18,946)$(15,083)$(74,826)$(87,823)
Amortization of capitalized research & development expenses (1)
619 378 2,099 1,133 
Amortization of intangible assets (2)
193 110 729 647 
Share-based compensation expense (3)
4,211 2,596 15,247 13,613 
Non-cash pension expense (4)
(625)(77)(394)468 
Costs associated with restructuring (5)
1,232 — 1,232 — 
Adjusted operating loss$(13,316)$(12,076)$(55,913)$(71,962)


Notes to the Reconciliation of IFRS to Adjusted Financial Measures Tables

(1)Amortization of capitalized research and development expenses consists of software development costs amortized using the straight-line method over an estimated life of five years. These expenses do not have a cash impact but remain a recurring expense generated over the course of our research and development initiatives.

(2)Amortization of intangible assets consists of costs related to intangible assets amortized over the course of their useful lives. These expenses do not have a cash impact, but we could continue to generate such expenses through future capital investments.

(3)Share-based compensation expense represents the cost of equity awards issued to our directors, officers, and employees. The fair value of awards is computed at the time the award is granted and is recognized over the vesting period of the award by a charge to the income statement and a corresponding increase in other reserves within equity. These expenses do not have a cash impact but remain a recurring expense for our business and represent an important part of our overall compensation strategy.

(4)Non-cash pension expense consists of the amount recognized in excess of actual contributions made to our defined pension plans to match actuarial expenses calculated for IFRS purposes. The difference represents a non-cash expense but remains a recurring expense for our business as we continue to make contributions to our plans for the foreseeable future.

(5)Costs associated with restructuring consists of compensation paid to employees during their garden leave period, severance, and any other amounts legally owed to the employees resulting from their termination as part of a planned workforce reduction, which we undertook to optimize our operations. Additionally, it includes any legal fees incurred as part of the restructuring process. While such actions are not planned going forward as part of our regular operations, we expect such expenses could still be incurred from time to time based on corporate needs.
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Dear Fellow Shareholders,

2023 was a tremendous year for SOPHiA GENETICS. We continued building the future of data-driven medicine, and in doing so, creating long-term value for our customers and our shareholders.

In many ways, 2023 was the year of AI. It was the first time that the general public gained access to powerful AI models and learned what they can do. As the Co-founder and leader of an AI-driven precision medicine company, this movement has been a fulfilling experience for me.

Since SOPHiA GENETICS’ inception in 2011, we have invested over US$400 million to build some of the most advanced AI capabilities in the healthcare sector. We recruited a team of more than 200 of the top data scientists and engineers in the world who contribute daily to building and developing our Platform, SOPHiA DDM™. Today, SOPHiA DDM™ is widely recognized by healthcare professionals and researchers across the globe for its world-class analytical performance and by some of our partners as the leading AI Platform in all of the healthcare space.

However, at SOPHiA GENETICS, we do not look at innovation as the development of new technologies. At SOPHiA GENETICS, we look at innovation as the adoption of those technologies in the market. And in that spirit, I would like to highlight the progress we made driving adoption of SOPHiA DDM™ throughout 2023.

Let me start by acknowledging the strongest evidence of our success. We grew revenue 31% year-over-year to US$62.4 million by continuing to drive widespread adoption of our Platform. At the same time, we improved gross margins and reduced operating costs to achieve a 36% decline in cash burn. In 2023, SOPHiA DDM™ was used by 770+ healthcare institutions across the globe, including by 450 core genomic customers who used SOPHiA DDM™ to perform over 317,000 analyses.

I am exceptionally proud of the progress made in 2023, and I would like to take a moment to thank the 400+ hard-working SOPHiANs, our partners, and our investors, all of whom helped to make this success a reality.

Our six strategic pillars remain our focus for driving long-term growth. We are as confident as ever in our strategic path, and I am excited to share more detail on our 2023 progress along these pillars with you.

Accelerating adoption of SOPHiA DDM™ by landing new clinical customers

Healthcare institutions around the world continue to choose SOPHiA DDM™ for very good reasons, for example our platform’s top analytical performance, ability to expedite turnaround time, universal compatibility (i.e., we work with all sequencer types, library prep, and technologies), and decentralized approach (i.e., customers maintain ownership of data).

By the end of 2023, we built a network of 450 core genomics customers who use SOPHiA DDM™ regularly to generate insights for patients with cancer or rare and inherited disorders.

I am thrilled to announce that we landed a record 87 new core genomic customers during 2023. This includes 35 new customers signed during Q4. These customers will implement SOPHiA DDM™ over the course of the year and are set to join our network of core genomics customers during 2024.

Growing the adoption of our platform in the US market continues to be a strong focus area as we see large potential for growth. In 2023, we delivered strong progress in this area. In 2023, US revenue grew
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70% to US$9.5 million. We signed 9 new core genomic customers in the US in 2023 and were proud to welcome some of the top US cancer centers and research labs to the SOPHiA DDM™ network.

Apart from customer relationships, we also had a landmark year with our partners in the US. Namely, we continued to build our strategic partnership with Memorial Sloan Kettering. During 2023, we entered into a partnership with MSK to help them to decentralize their Liquid Biopsy test MSK-ACCESS® and their Solid Tumor test MSK-IMPACT®, and to make these tests available to healthcare institutions across the globe. We officially launched MSK-ACCESS® powered with SOPHiA DDM™ in December and have been pleased to see strong demand for this application in the market. In the US, we announced a number of new signings for MSK-ACCESS® powered with SOPHiA DDM™ and are looking forward to capitalizing on this momentum going into 2024.

Expanding usage of SOPHiA DDM™ within our existing customer base

We continue to employ a “land and expand” commercial strategy that focuses on winning new customers and then driving usage of our platform by encouraging those customers to adopt more and more SOPHiA DDM™ applications. Our offering includes an impressive suite of applications, including those for Hereditary Cancer, Hematology-Oncology, Solid Tumor, Liquid Biopsy, and Rare & Inherited Disorders.

In 2023, we continued to delight our customers, and in doing so, expand within accounts. Last year, we recorded an impressive NPS score of 75 from our core genomics users. We are incredibly proud of this achievement. We are also proud that our customers continue to adopt more applications once joining our network. As of the end of 2023, 56% of customers were using two or more applications, up from 49% a year ago. 31% of customers were using three or more applications, up from 28% a year ago. And 21% of our customers were using four or more applications, up from 17% a year ago. The continued proof of our ability to expand within existing customers exemplifies the importance of landing new customers across the globe.

Building SOPHiA DDM™’s menu of offerings

2023 was a landmark year for building our menu of offerings. I will highlight 2 major launches from 2023, including how they are already driving significant value for our customers.

First, and as mentioned previously, we launched an expanded suite of Liquid Biopsy applications in December 2023. This includes MSK-ACCESS® powered with SOPHiA DDM™. Our Liquid Biopsy applications are powered by a proprietary molecular barcoding technology named CUMIN™. CUMIN™ uses a unique approach to detecting signal from noise in samples with low input material, such as those collected for liquid biopsies, and differentiates our Liquid Biopsy application in a powerful way. For these reasons, we are excited by the application we developed, especially as we see strong demand already in the market.

The second item I would like to highlight was the launch of our multimodal module on SOPHiA DDM™, SOPHiA CarePath™. SOPHiA CarePath™ enables customers to go beyond genomics and perform longitudinal analysis of multimodal patient data (e.g., imaging data, clinical data, biological data). The multimodal capabilities of SOPHiA CarePath™ are designed to predict treatment effects of different therapy decisions in addition to allowing clinicians to perform patient cohorting and data visualization.

Leveraging SOPHiA DDM™ to provide value to our BioPharma companies


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As you can imagine, the multimodal capabilities of SOPHiA CarePath™ provide differentiated value to our BioPharma customers who are willing to pay for the access to the multimodal patient data and to the predictive multimodal models which analyze them.

Towards the end of 2023, we completed a landmark project with one of our key BioPharma partners where SOPHiA CarePath™ identified a signature in subpopulations of lung cancer patients which could indicate different treatment effects for a specific drug. We continue to remain excited about these use cases for our multimodal offering and the substantial value these capabilities bring to our BioPharma customers

In addition to the value our multimodal capabilities bring to BioPharma customers, we also share a mutual interest with BioPharma companies to expand access to cancer testing across the globe. In 2023, we completed a number of partnerships with BioPharma partners where they sponsored the deployment of SOPHiA DDM™.

Our partnership with AstraZeneca has been a major proof point in this area. Last month, we announced that AZ sponsored the deployment of SOPHiA DDM’s HRD application across Spain in 2023 with resounding success. Following up on the success of this program, we also announced a new partnership with AZ to deploy MSK-ACCESS® and MSK-IMPACT® powered with SOPHiA DDM™ to customers across the globe during 2024.

Building partnerships in the ecosystem

As evidenced throughout this note, building the future of data-driven medicine is not something we can do alone. We achieved considerable momentum in 2023 by collaborating with premier leaders in our industry, further enabling our applications to reach more patients.

In 2023, we delivered significant partnerships with Memorial Sloan Kettering Cancer Center, AstraZeneca, Boundless Bio, and Microsoft, among others. We also announced partnerships with Agilent and Qiagen to deliver integrated solutions for Solid Tumors. We look forward to continuing to work with our valued partners in 2024 as we expand access to precision cancer care together.

Excelling operationally within SOPHiA GENETICS

Our final strategic pillar focuses on excelling operationally at every level within SOPHiA GENETICS. Our long-term commitment to operational excellence produces savings that have benefited both growth and margins. I’m proud to announce that our adjusted gross margin was 72% for the full year 2023 compared to 68% for 2022. Moreover, we improved cash burn by 36% in 2023 while maintaining revenue growth of over 30%.

In January of 2024, I was proud to announce our plans to achieve profitability in the next 2+ years. Being a sustainable company is critically important to us and the populations we serve. We have taken the required cost actions to expedite that goal and remain obsessed with capital efficiency. Based on our current trajectory, we remain confident in our ability to execute our ambitious growth plans, and we remain-laser focused on delivering sustainable growth for years to come.

Closing remarks

After a successful and unforgettable 2023, our focus shifts to the future. In 2024, we are looking forward to continuing to execute on our vision and creating value at every turn. Our six strategic pillars remain

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our foundation to drive growth and value creation. I am encouraged and as confident as ever about our long-term trajectory.

In closing, I’d like to thank the SOPHiANs, our passionate and dedicated employees, for their hard work and incredible contributions towards building the future of precision medicine. I’d also like to thank our partners, customers, and investors for joining us on this journey. Without you, none of this would be possible. I look forward to continuing to update you on SOPHiA GENETICS’s future success in democratizing data-driven medicine.

Sincerely,

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Dr. Jurgi Cambling
Co-Founder and Chief Executive Officer
SOPHiA GENETICS


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Consolidated Financial Statements of SOPHiA GENETICS SA for the year ended
December 31, 2023



SOPHiA GENETICS SA
Rolle
Report of the statutory auditor
to the General Meeting
on the consolidated financial statements 2023
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Report of the statutory auditor
to the General Meeting of SOPHiA GENETICS SA
Rolle

Report on the audit of the consolidated financial statements
Opinion
We have audited the consolidated financial statements of SOPHiA GENETICS SA and its subsidiaries (the Group), which comprise the consolidated statement of loss and the consolidated statement of comprehensive loss for the year ended 31 December 2023, the consolidated balance sheet as at 31 December 2023, the consolidated statement of change in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including material accounting policy information.

In our opinion, the accompanying consolidated financial statements give a true and fair view of the consolidated financial position of the Group as at 31 December 2023 and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with IFRS Accounting Standards and comply with Swiss law.
Basis for opinion
We conducted our audit in accordance with Swiss law, International Standards on Auditing (ISAs) and Swiss Standards on Auditing (SA-CH). Our responsibilities under those provisions and standards are further described in the 'Auditor’s responsibilities for the audit of the consolidated financial statements' section of our report. We are independent of the Group in accordance with the provisions of Swiss law and the requirements of the Swiss audit profession, as well as the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Our audit approach
Overview
Overall Group materiality: USD 3,894 thousand
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We conducted full scope audit work at the Swiss entity. In addition, specified procedures were performed on the U.S. and French entities. Our audit scope addressed over 90% of the Group’s total revenue.
As key audit matter the following area of focus has been identified:
Revenue from SOPHiA DDM platform

Materiality
The scope of our audit was influenced by our application of materiality. Our audit opinion aims to provide reasonable assurance that the consolidated financial statements are free from material misstatement. Misstatements may arise due
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PricewaterhouseCoopers SA, avenue C.-F. Ramuz 45, case postale, 1001 Lausanne, Switzerland
Téléphone: +41 58 792 81 00, www.pwc.ch
PricewaterhouseCoopers SA is a member of the global PricewaterhouseCoopers network of firms, each of which is a separate and independent legal entity.


to fraud or error. They are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the consolidated financial statements.

Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall Group materiality for the consolidated financial statements as a whole as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and in aggregate, on the consolidated financial statements as a whole.

Overall Group materiality
USD 3,894 thousand
Benchmark applied
Loss before tax
Rationale for the materiality benchmark applied
We chose loss before tax as the benchmark because, in our view, it is the benchmark against which the performance of the Group is most commonly measured, and it is a generally accepted benchmark.

We agreed with the Audit Committee that we would report to them misstatements above USD 389 thousand identified during our audit as well as any misstatements below that amount which, in our view, warranted reporting for qualitative reasons.
Audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the consolidated financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates.

The Group financial statements are a consolidation of 7 reporting entities. We, the Group audit team, identified and performed the audit over 1 reporting entity that, in our view, required an audit of its complete financial information due to its size or risk characteristics. To obtain appropriate coverage of material balances, we also performed specified audit procedures on 2 reporting entities. None of the reporting entities excluded from our Group audit scope individually contributed more than 5% to net sales or total assets. Audit procedures were also performed over the Group’s Corporate activities (including certain employee benefits) and Group consolidation.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
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3 SOPHiA GENETICS SA | Report of the statutory auditor to the General Meeting


Revenue from SOPHiA DDM platform
Key audit matter
How our audit addressed the key audit matter
During the year ended December 31, 2023, the Group’s revenue from the SOPHiA DDM platform was USD 60,904 thousand.
As discussed in note 4 to the consolidated financial statements, the Group has determined that the stand-alone selling price for the analyses, in both a dry lab arrangement and bundle arrangement, is not discernible from past transactions. As a result, the residual approach is used to determine the stand-alone selling price of the analyses for both arrangements. Two different margins have been determined by the Group, one for enrichment kits which are produced and one for enrichment kits which are purchased.

In our view, this is a key audit matter, as the determination of the stand-alone selling price is based to a large extent on estimates made by the Group.

We obtained and read the accounting memo and discussed with management the determination of the accounting treatment of the residual approach. We critically challenged the estimates used in the determination of the enrichment kit margin for both produced and purchased enrichment kits by comparing the peer group information included in management’s memo to publicly available information.
We assessed the appropriateness of the Group’s conclusions in the application of the accounting policy in accordance with IFRS 15.
We tested the application of the estimates throughout our revenue testing and as part of the enrichment kit cost testing. We noted no deviations from the two estimates management outlined in their accounting memo.

In addition, we performed a sensitivity analysis over the Group’s estimate of the margin applied to the enrichment kits to understand the impact on the timing of the revenue recognized.

Based on our procedures we consider management’s approach regarding the determination of the accounting treatment, the approach used to allocate the transaction price to the analyses and estimates used for the determination of the enrichment kit margin to be reasonable.

Other information
The Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements, the consolidated financial statements, the compensation report and our auditor’s reports thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Board of Directors' responsibilities for the consolidated financial statements
The Board of Directors is responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with IFRS Accounting Standards and the provisions of Swiss law, and for such internal control as the Board of Directors determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
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4 SOPHiA GENETICS SA | Report of the statutory auditor to the General Meeting


basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Swiss law, ISAs and SA-CH will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with Swiss law, ISAs and SA-CH, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

•Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

•Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

•Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made.

•Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

•Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

•Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with the Board of Directors or its relevant committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Board of Directors or its relevant committee with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them regarding all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with the Board of Directors or its relevant committee, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

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5 SOPHiA GENETICS SA | Report of the statutory auditor to the General Meeting


Report on other legal and regulatory requirements

In accordance with article 728a para. 1 item 3 CO and PS-CH 890, we confirm the existence of an internal control system that has been designed, pursuant to the instructions of the Board of Directors, for the preparation of the consolidated financial statements.

We recommend that the consolidated financial statements submitted to you be approved.
PricewaterhouseCoopers SA





/s/ Michael Foley/s/ Pierre-Alain Dévaud
Licensed audit expert
Auditor in charge
Licensed audit expert
Lausanne, 5 March 2024
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6 SOPHiA GENETICS SA | Report of the statutory auditor to the General Meeting


SOPHiA GENETICS SA, Rolle
Consolidated Statements of Loss
(Amounts in USD thousands, except per share data)
Year ended December 31,
Notes202320222021
Revenue4$62,371 $47,560 $40,450 
Cost of revenue5(19,458)(16,306)(15,229)
Gross profit42,913 31,254 25,221 
Research and development costs6(36,969)(35,371)(26,578)
Selling and marketing costs6(28,423)(28,267)(28,735)
General and administrative costs6(53,301)(55,816)(41,505)
Other operating income, net7954 377 108 
Operating loss(74,826)(87,823)(71,489)
Interest income (expense), net83,959 685 (638)
Foreign exchange and other losses8(7,628)(447)(1,380)
Loss before income taxes(78,495)(87,585)(73,507)
Income tax (expense) benefit9(486)136 (168)
Loss for the year(78,981)(87,449)(73,675)
Attributable to the owners of the parent$(78,981)$(87,449)$(73,675)
Basic and diluted loss per share10$(1.22)$(1.36)$(1.33)
The Notes form an integral part of these consolidated financial statements



SOPHiA GENETICS SA, Rolle
Consolidated Statements of Comprehensive Loss
(Amounts in USD thousands)
Year ended December 31,
Notes202320222021
Loss for the year$(78,981)$(87,449)$(73,675)
Other comprehensive (loss) income:
Items that may be reclassified to statement of loss (net of tax)
Currency translation differences15,037 (4,336)(4,736)
Total items that may be reclassified to statement of loss$15,037 $(4,336)$(4,736)
Items that will not be reclassified to statement of loss (net of tax)
Remeasurement of defined benefit plans22(212)2,154 461 
Total items that will not be reclassified to statement of loss$(212)$2,154 $461 
Other comprehensive (loss) income for the year$14,825 $(2,182)$(4,275)
Total comprehensive loss for the year$(64,156)$(89,631)$(77,950)
Attributable to owners of the parent$(64,156)$(89,631)$(77,950)
The Notes form an integral part of these consolidated financial statements



SOPHiA GENETICS SA, Rolle
Consolidated Balance Sheets
(Amounts in USD thousands)
As of December 31,
Notes20232022
Assets
Current assets
Cash and cash equivalents11$123,251 $161,305 
Term deposits12— 17,307 
Accounts receivable1313,557 6,649 
Inventory146,482 5,156 
Prepaids and other current assets154,757 5,838 
Total current assets148,047 196,255 
Non-current assets
Property and equipment167,469 7,129 
Intangible assets1727,185 19,963 
Right-of-use assets1815,635 14,268 
Deferred tax assets91,720 1,940 
Other non-current assets196,100 4,283 
Total non-current assets58,109 47,583 
Total assets$206,156 $243,838 
Liabilities and equity
Current liabilities
Accounts payable20$5,391 $6,181 
Accrued expenses2117,808 14,505 
Deferred contract revenue49,494 3,434 
Current portion of lease liabilities182,928 2,690 
Total current liabilities35,621 26,810 
Non-current liabilities
Lease liabilities, net of current portion1815,673 14,053 
Defined benefit pension liabilities223,086 2,675 
Other non-current liabilities334 170 
Total non-current liabilities19,093 16,898 
Total liabilities54,714 43,708 
Equity
Share capital4,048 3,464 
Share premium471,846 471,623 
Treasury shares(646)(117)
Other reserves53,978 23,963 
Accumulated deficit(377,784)(298,803)
Total equity151,442 200,130 
Total liabilities and equity$206,156 $243,838 
The Notes form an integral part of these consolidated financial statements



SOPHiA GENETICS SA, Rolle
Consolidated Statements of Changes in Equity
(Amounts in USD thousands, except share data)
NotesSharesShare
capital		Treasury SharesTreasury Share
capital		Share
premium		Other
reserves		Accumulated
deficit		Total
January 1, 202147,955,700 $2,460 — $— $227,429 $8,300 $(137,679)$100,510 
Loss for the period— — — — — — (73,675)(73,675)
Other comprehensive loss— — — — — (4,275)— (4,275)
Total comprehensive loss— — — — — (4,275)(73,675)(77,950)
Share-based compensation23— — — — — 8,514 — 8,514 
Transactions with owners
Share options exercised1,271,300 69 — — 4,458 — — 4,527 
Sale of ordinary shares in initial public offering, net of transaction costs13,000,000 710 — — 210,953 — — 211,663 
Sale of ordinary shares in private placement, net of transaction costs1,111,111 61 — — 19,587 — — 19,648 
Sale of ordinary shares in greenshoe offering, net of transaction costs519,493 28 — — 8,460 — — 8,488 
December 31, 202163,857,604 $3,328 — $— $470,887 $12,539 $(211,354)$275,400 
Loss for the period— — — — — — (87,449)(87,449)
Other comprehensive loss— — — — — (2,182)— (2,182)
Total comprehensive loss— — — — — (2,182)(87,449)(89,631)
Share-based compensation23— — — — — 13,613 — 13,613 
Transactions with owners
Share options exercised and vesting of Restricted Stock Units23— — 373,616 19 736 (7)— 748 
Issuance of shares to be held as treasury shares2,540,560 136 (2,540,560)(136)— — — — 
December 31, 202266,398,164 $3,464 (2,166,944)$(117)$471,623 $23,963 $(298,803)$200,130 
Loss for the period(78,981)(78,981)
Other comprehensive loss— — — — — 14,825 — 14,825 
Total comprehensive loss— — — — — 14,825 (78,981)(64,156)
Share-based compensation2315,242 — 15,242 



Transactions with owners
Share options exercised and vesting of Restricted Stock Units23— — 999,339 55 223 (52)— 226 
Issuance of shares to be held as treasury shares10,500,000 584 (10,500,000)(584)— — — — 
December 31, 202376,898,164 $4,048 (11,667,605)$(646)471,846 53,978 (377,784)151,442 
The Notes form an integral part of these consolidated financial statements



SOPHiA GENETICS SA, Rolle
Consolidated Statements of Cash Flows
(Amounts in USD thousands)
Year ended December 31,
Notes202320222021
Operating activities
Loss before income tax$(78,495)$(87,585)$(73,507)
Adjustments for non-monetary items
Depreciation16,185,508 3,791 2,517 
Amortization172,828 1,780 1,092 
Finance expense (income), net2,934 (685)638 
Gain on TriplePoint success fee— — (430)
Expected credit loss allowance13214 (467)(988)
Share-based compensation2315,242 13,613 8,514 
Intangible assets write-off17— 73 30 
Movements in provisions, pensions, and government grants14,22308 953 (23)
Research tax credit6(1,129)(1,292)(1,597)
Loss on disposal of property and equipment1628 — 22 
Gain on disposal of lease liability(733)— — 
Working capital changes
(Increase) decrease in accounts receivable(6,500)1,332 1,806 
(Increase) decrease in prepaids and other assets1,375 (977)(2,330)
(Increase) decrease in inventory(874)(200)(2,336)
Increase (decrease) in accounts payables, accrued expenses, deferred contract revenue, and other liabilities6,871 (1,428)8,980 
Cash used in operating activities
Income tax received (paid)(801)— (55)
Interest paid(6)(266)(286)
Interest received4,655 1,265 14 
Net cash flows used in operating activities(48,575)(70,093)(57,939)
Investing activities
Purchase of property and equipment16(1,494)(4,097)(2,683)
Acquisition of intangible assets17(263)(464)(130)
Capitalized development costs17(7,469)(5,820)(3,858)
Proceeds upon maturity of term deposits and short-term investments1217,546 78,533 21,878 
Purchase of term deposits and short-term investments12— (26,179)(72,141)
Net cash flow provided from (used in) investing activities8,320 41,973 (56,934)
Financing activities
Proceeds from exercise of share options23226 748 4,527 
Proceeds from initial public offering, net of transaction costs— — 211,663 
Proceeds from greenshoe, net of transaction costs— — 8,488 
Proceeds from private placement, net of transaction costs— — 19,648 
Payment of TriplePoint success fee— — (2,468)
Repayments of borrowings24— — (3,167)
Payments of principal portion of lease liabilities18(3,043)(2,316)(918)
Net cash flow (used in) provided from financing activities(2,817)(1,568)237,773 
Increase (decrease) in cash and cash equivalents(43,072)(29,688)122,900 
Effect of exchange differences on cash balances5,018 (1,969)(4,563)
Cash and cash equivalents at beginning of the year161,305 192,962 74,625 
Cash and cash equivalents at end of the year$123,251 $161,305 $192,962 
The Notes form an integral part of these consolidated financial statements



SOPHiA GENETICS SA, Rolle
Notes to the Consolidated Financial Statements
1. Company information and operations
General information
SOPHiA GENETICS SA and its consolidated subsidiaries (NASDAQ: SOPH) (“the Company”) is a cloud-native software company in the healthcare space, incorporated on March 18, 2011, and headquartered in Rolle, Switzerland. The Company is dedicated to establishing the practice of data-driven medicine as the standard of care in healthcare and for life sciences research. The Company has built a cloud-native software platform capable of analyzing data and generating insights from complex multimodal datasets and different diagnostic modalities. This platform, commercialized as “SOPHiA DDMTM,” standardizes, computes, and analyzes digital health data and is used in decentralized locations to break down data silos.

On June 26, 2023, during the Company’s Annual General Meeting, the move of the statutory seat from Saint-Sulpice, Canton Vaud, Switzerland to Rolle, Canton Vaud, Switzerland was approved.
As of December 31, 2023, the Company had the following wholly-owned subsidiaries:
NameCountry of domicile
SOPHiA GENETICS S.A.S.France
SOPHiA GENETICS LTDUK
SOPHiA GENETICS, Inc.USA
SOPHiA GENETICS Intermediação de Negócios LTDABrazil
SOPHiA GENETICS PTY LTDAustralia
SOPHiA GENETICS S.R.L.Italy
Interactive Biosoftware S.A.S., a wholly owned subsidiary located in France and acquired in 2018, was merged into SOPHiA GENETICS S.A.S. in 2020.
On April 9, 2021, SOPHiA GENETICS PTY LTD, a wholly owned subsidiary located in Australia, was incorporated.
On May 27, 2021, SOPHiA GENETICS S.R.L., a wholly owned subsidiary located in Italy, was incorporated.

On December 12, 2022, the Company changed the name of SOPHiA GENETICS Intermediação de Negócios EIRELI to SOPHiA GENETICS Intermediação de Negócios LTDA.
The Company’s Board of Directors approved the issue of the consolidated financial statements on March 5, 2024.
Share split
On June 30, 2021, the Company effected a one-to-twenty share split of its outstanding shares. Accordingly, all share and per share amounts for all periods presented in these consolidated financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect this share split.



Initial public offering
In July 2021, the Company completed its initial public offering (“IPO”) in the United States on the Nasdaq Global Market (“Nasdaq”) under the trading ticker symbol “SOPH”. Trading on the Nasdaq commenced at market open on July 23, 2021. The Company completed the IPO of 13,000,000 ordinary shares, at an IPO price of $18.00 per share, par value $0.05 (CHF 0.05). The aggregate net proceeds received from the IPO, net of underwriting discounts and commissions and offering expenses, was $211.7 million. Immediately prior to the completion of the IPO, all then outstanding shares of preferred shares were converted into 24,561,200 shares of ordinary shares on a one-to-one basis.
Concurrent with the IPO, the Company closed a private placement, in which it sold 1,111,111 ordinary shares to an affiliate of GE Healthcare at a price of $18.00 per share, par value $0.05 (CHF 0.05). The aggregate net proceeds received from the private placement, net of offering expenses, was $19.6 million.
On August 25, 2021, the underwriters of the IPO elected to exercise in part their option to purchase an additional 519,493 ordinary shares (“greenshoe”) at the IPO price of $18.00 per share, par value $0.05 (CHF 0.05). The aggregate net proceeds received from the greenshoe, net of underwriting discounts and commissions and offering expenses, was $8.5 million.
Issued share capital
As of December 31, 2023, the Company had issued 76,898,164 shares of which 65,230,559 are outstanding and 11,667,605 are held by the Company as treasury shares. As of December 31, 2022, the Company had issued outstanding shares of 64,231,220. All shares were considered paid as of December 31, 2023.
Treasury shares
During the first quarter of 2022, the Company issued 2,540,560 registered shares to SOPHiA GENETICS LTD pursuant to a share delivery and repurchase agreement, which were immediately exercised, and repurchased the shares to hold as treasury shares for the purposes of administering the Company's equity incentive programs. During the second quarter of 2023, the Company issued 10,500,000 registered shares to SOPHiA GENETICS LTD pursuant to a share delivery and repurchase agreement, which were immediately exercised, and repurchased the shares to hold as treasury shares. The Company held 11,667,605 and 2,166,944 treasury shares as of December 31, 2023 and 2022, respectively.
Treasury shares are recognized at acquisition cost and recorded as treasury shares at the time of the transaction. Upon exercise of share options or vesting of restricted stock units, the treasury shares are subsequently transferred. Any consideration received is included in shareholders’ equity.
2. Material accounting policies
Basis of preparation
Compliance with International Financial Reporting Standards
The consolidated financial statements of the Company have been prepared in accordance with IFRS Accounting Standards and interpretations issued by the IFRS Interpretations Committee (“IFRS IC”) applicable to companies reporting under IFRS. The consolidated financial statements comply with IFRS Accounting Standards as issued by the International Accounting Standards Board (“IASB”).
Basis of consolidation
A subsidiary is an entity over which the Company has control. The Company controls an entity when it has the power to direct its activities and has rights to its variable returns. Subsidiaries are fully



consolidated from the date on which control is transferred to the Company and deconsolidated from the date that control ceases.
During the consolidation process intercompany transactions, balances, and unrealized gains on transactions between companies are eliminated. Unrealized losses are also eliminated unless there is evidence of an impairment of the transferred asset. In order to ensure consistency with the accounting policies of the Company, the accounting policies of subsidiaries have been changed where necessary.
Foreign currency translation
Items included in the consolidated financial statements of each of the Company’s entities are measured using the currency of the primary economic environment in which the entity operates (“functional currency”). In individual entities, transactions in foreign currencies are translated as of transaction date. Monetary assets and liabilities in foreign currencies are translated at month end rates. The Company’s reporting currency of the Company’s consolidated financial statements is the U.S. dollar (“USD”). Assets and liabilities denominated in foreign currencies are translated at the month-end spot exchange rates, income statement accounts are translated at average rates of exchange for the period presented, and equity is translated at historical exchange rates.
On consolidation, assets and liabilities of foreign operations reported in their local functional currencies are translated into USD. Differences arising from the retranslation of opening net assets of foreign operations, together with differences arising from the translation of the net results for the year of foreign operations, are recognized in other comprehensive income under currency retranslations. Gains or losses resulting from foreign currency transactions are included in net income.
The Company selected the U.S. dollar as its presentation currency for purposes of its consolidated financial statements instead of the Company’s functional currency, the Swiss franc, because of the global nature of its business, its expectation that an increasing portion of revenues and expenses will be denominated in USD, and its plans to continue to access U.S. capital markets.
Use of estimates
The preparation of consolidated financial statements in conformity with IFRS Accounting Standards requires the use of accounting estimates. It also requires management to exercise judgment in applying the Company’s accounting policies. The Company’s significant estimates and judgments included in the preparation of the consolidated financial statements are related to revenue recognition, capitalized internal software development costs, share-based compensation, expected credit loss, goodwill, defined benefit pension liabilities, uncertain tax positions, and derivatives.
Disclosed in the corresponding sections within the footnotes are the areas which require a high degree of judgment, significant assumptions, and/or estimates.
Going concern basis
The consolidated financial statements have been prepared on a going concern basis (See Note 29 – “Capital management”).
Historical cost convention
The consolidated financial statements have been prepared on a historical cost basis except for certain assets and liabilities, which are carried at fair value.



Accounting policies
The material accounting policies adopted in the preparation of the consolidated financial statements have been consistently applied, unless otherwise stated.
Provisions and contingencies
Provisions comprise liabilities of uncertain timing or amount. The provisions and liabilities are recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated. Provisions are not recognized for future operating losses. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period, unless the impact of discounting is immaterial. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognized as interest expense.
Contingent liabilities are possible obligations that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not fully within the control of the Company.
The likelihood of occurrence of provisions and contingent liabilities requires use of judgment. Judgment is also required to determine if an outflow of economic resources is probable, or possible but not probable. Where it is probable, a liability is recognized, and further judgment is used to determine the level of the provision. Where it is possible but not probable, further judgment is used to determine if the likelihood is remote, in which case no disclosures are provided; if the likelihood is not remote then judgment is used to determine the contingent liability disclosed.
Financial assets classification
Upon recognition, financial assets are classified on the basis of how the financial assets are measured: at amortized cost or fair value through income.
The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Company’s business model for managing them. Except for accounts receivable that do not contain a significant financing component, the Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through income, transaction costs. Accounts receivable that do not contain a significant financing component are measured at the transaction price.
The Company’s business model for managing financial assets is defined by whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Financial assets held in order to collect contractual cash flows are measured at amortized cost. Financial assets held both to collect contractual cash flows and for sale are measured at fair value through other comprehensive income/loss.
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the marketplace (regular way trades) are recognized on the trade date, i.e., the date that the Company commits to purchase or sell the asset.
Financial assets measured at amortized cost
Financial assets initially measured at amortized cost are subsequently measured using the effective interest rate (“EIR”) method and are subject to impairment. Gains and losses are recognized in income when the asset is derecognized, modified, or impaired. The Company’s financial assets at amortized cost include cash, term deposits and accounts receivable.



Financial assets—derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e., removed from the Company’s consolidated balance sheet) when:
•the rights to receive cash flows from the asset have expired or;
•the Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either;
•the Company has transferred substantially all the risks and rewards of the asset, or;
•the Company has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control of the asset.
When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership.
When the Company has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognize the transferred asset to the extent of its continuing involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.
Financial assets—impairment
For cash, cash equivalents, and term deposits, the Company invests in assets where it has never incurred and does not expect to incur credit losses.
For accounts receivable the Company recognizes a loss allowance based on lifetime estimated credit losses (“ECL”) at each reporting date. When estimating the ECL the Company takes into consideration: readily available relevant and supportable information (this includes quantitative and qualitative data), the Company’s historical experience and forward-looking information specific to the receivables and the economic environment.
See Note 13 – “Accounts receivable” for further information about the Company’s accounting for trade receivables.
Financial liabilities classification
Financial liabilities are classified upon initial recognition as financial liabilities measured at fair value through income or at amortized cost. The Company’s financial liabilities include accounts payable and debt (including borrowings and lease liabilities), which are measured at amortized cost, and derivatives, which are measured at fair value through income.
Interest-bearing borrowings are initially recognized at fair value less directly attributable costs and subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in income when the liabilities are derecognized as well as through the EIR amortization process.



Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of income/loss.
Financial liabilities—derecognition
A financial liability is derecognized when the obligation under the liability is discharged or canceled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statements of loss.
New standards, amendments to standards and interpretations
New standards, amendments to standards, and interpretations issued recently effective
There are no new IFRS Accounting Standards, amendments or interpretations that are mandatory as of January 1, 2023 that are relevant to the Company.
New standards, amendments to standards, and interpretations issued not yet effective
In January 2020, IASB issued amendments to paragraphs 69 to 76 of International Accounting Standard (“IAS”) 1, Presentation of Financial Statements (“IAS 1”), to specify the requirements for classifying liabilities as current or non-current, effective for annual reporting periods beginning on or after January 1, 2024. The Company determined the amendment has no impact.
There are no other IFRS Accounting Standards or IFRS IC interpretations that are not yet effective and that could have a material impact to the consolidated financial statements.

3. Segment reporting
The Company operates in a single operating segment. The Company’s financial information is reviewed, and its performance assessed as a single segment by the senior management team led by the Chief Executive Officer (“CEO”), the Company’s Chief Operating Decision Maker (“CODM”).
For the years ended December 31, 2023 and 2022, respectively, the Company had a physical presence in three countries outside of its headquarters in Switzerland: France, the United States, and Brazil. An analysis of the location of non-current assets other than financial instruments and deferred tax assets by country is as follows (in USD thousands):
As of December 31,
20232022
Switzerland$46,370 $39,052 
France3,000 498 
United States913 1,803 
Brazil6 6 
Total non-current assets other than financial instruments
and deferred tax assets		$50,289 $41,359 



4. Revenue
Material accounting estimates and judgments
The Company recognizes revenue when control of promised goods or services is transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. Significant judgment is required to determine the stand-alone selling price (“SSP”) for each performance obligation in the SOPHiA DDM Platform, the amount allocated to each performance obligation and whether it depicts the amount that the Company expects to receive in exchange for the related product and/or service.
The Company enters into arrangements with multiple performance obligations where it could be difficult to determine the performance obligations under a sales agreement; in such cases, how and when revenue should be recognized is subject to certain estimates or assumptions. Should these judgments and estimates not be correct, revenue recognized for any reporting period could be adversely affected.
Accounting policies
Revenue represents amounts received and receivable from third parties for goods supplied and services rendered to customers. Revenues are reported net of rebates and discounts and net of sales and value added taxes in an amount that reflects the consideration that is expected to be received for goods or services. The majority of the sales revenue is recognized: (i) when customers generate analyses on their patient data through the SOPHiA DDM Platform, (ii) when consumables, namely DNA enrichment kits, are delivered to customers at which point control transfers, (iii) when services, namely set-up programs, are performed and (iv) over the duration of the software licensing arrangements for the Alamut software offerings.
Products and services are sold both directly to customers and through distributors, generally under agreements with payment terms of up to 180 days. Therefore, contracts do not contain a significant financing component.
For all contracts with customers the following steps are performed to determine the amount of revenue to be recognized and when it should be recognized: (1) identify the contract or contracts; (2) determine whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (3) measure the transaction price, including the constraint on variable consideration; (4) allocate the transaction price to the performance obligations based on estimated selling prices; and (5) recognize revenue when (or as) each performance obligation is satisfied.
SOPHiA DDM Platform
The majority of the SOPHiA DDM Platform revenue is derived from each use of the SOPHiA DDM Platform by customers to generate analyses on their patient data. Analysis revenue is recognized as analysis results are made available to the customer on the SOPHiA DDM Platform. The Company recognizes accrued contract revenue in accounts receivable for any analyses performed by customers that have not been invoiced at the reporting date and where the right to consideration is unconditional. Any payments received in advance of customers generating analyses are recorded as deferred contract revenue until the analyses are performed.
Customers use the SOPHiA DDM Platform to perform analyses under three different models: dry lab access; bundle access; and integrated solutions.
For dry lab contracts, customers use the testing instruments and consumables of their choice and the SOPHiA DDM Platform and algorithms for variant detection and identification. In these arrangements, the Company has identified one performance obligation, which is the delivery of the analysis result to the customer.



For bundle arrangements, customers purchase a DNA enrichment kit along with each analysis. Customers use the DNA enrichment kit in the process of performing their own sequencing of each sample. Customers then upload their patient data to the SOPHiA DDM Platform for analysis. In these arrangements, the Company has identified two performance obligations: the delivery of the DNA enrichment kits and the performance of the analyses. Revenue is recognized for the DNA enrichment kits when control of products has transferred to the customer, which is generally at the time of delivery, as this is when title and risk of loss have been transferred. Revenue for the performance of the analyses is recognized on delivery of the analysis results to the customer. Refer to Arrangements with multiple performance obligations below for how revenue is allocated between the performance obligations.
Deferred contract revenue balances relating to analyses not performed within 12 months from the date of the delivery date are recognized as revenue. This policy is not based on contractual conditions but on the Company’s experience of customer behavior and expiration of the kits associated with the analyses.
For integrated arrangements, customers have their samples processed and sequenced through selected SOPHiA DDM Platform partners within the clinical network and access their data through the SOPHiA DDM Platform. The Company has identified one performance obligation, which is delivery of the analysis results to the customer through the SOPHiA DDM Platform.
The Company also sells access to its Alamut software application (“Alamut”) through the SOPHiA DDM Platform. Some arrangements with customers allow customers to use Alamut as a hosted software service over the contract period without the customer taking possession of the software. Other customers take possession of the software, but the utility of that software is limited by access to the Company’s proprietary SOPHiA database, which is provided to the customer on a fixed term basis. Under both models, revenue is recognized on a straight-line basis over the duration of the agreement.
The Company also derives revenue from the SOPHiA DDM Platform by providing services to biopharma customers who engage the Company to (i) develop and perform customized genomic analyses and/or (ii) access the database for use in clinical trials and other research projects.
The Company does enter into biopharma contracts that contain multiple products or services or non-standard terms and conditions. The biopharma contracts are generally unique in nature and each contract is assessed upon execution. Contracts may contain multiple performance obligations or performance obligations that are recognized overtime, at a point-in-time, or a combination depending on the Company’s ability to satisfy the requirements to recognize revenue over time and reasonably estimate the amount of revenue to recognize. See “Arrangements with multiple performance obligations” below for further discussion on treatment of biopharma contracts.
Generally, the primary performance obligation in these arrangements is the delivery of analysis results in the form of a final report, resulting in revenue being recognized, in most cases, upon the issuance of the final report or successful recruitment of clinical trial participants.
Workflow materials and services
Revenue from workflow materials and services includes all revenue from the sale of materials and services that do not form part of a contract for the provision of platform services. These include the provision of set-up programs and training and the sale of kits and tests that are not linked to use of the platform. Set-up programs and training are typically combined with a customer’s first order prior to the customer beginning to use the SOPHiA DDM Platform.
Revenue from services is generally recognized when the services are performed. Revenue from materials is recognized when control of the goods is transferred to the customer, generally at the time of delivery. This category of revenue also includes the revenue from the sale of DNA sequencing automation equipment accounted for under IFRS 16, Leases (“IFRS 16”), leasing and the fees charged for the maintenance of this equipment.



Arrangements with multiple performance obligations
The Company sells different combinations of analyses, consumables, and services to its customers under its various SOPHiA DDM Platform models.
The Company has determined that the stand-alone selling prices for services and DNA enrichment kits are directly observable. For set-up programs and training sold along with dry lab arrangements or bundle arrangements, the stand-alone selling price of these services is determined on a time and materials basis. For DNA enrichment kits sold as part of a bundle, the SSP is based on an expected cost-plus-margin approach of the kit portion of the bundle.
The Company has determined that the SSP for the analyses, in both a dry lab arrangement and bundle arrangement, is highly variable and therefore a representative SSP is not discernible from past transactions. As a result, the residual approach is used to determine the stand-alone selling price of the analyses in dry lab arrangements that include services and in bundle arrangements that include DNA enrichment kits and, in some cases, services.
The Company also has a small number of bundle contracts with a fixed term that also include providing the customer with DNA sequencing automation equipment, which the Company has determined is an IFRS 16 leasing component. In these arrangements the Company provides DNA sequencing automation equipment to the customer over the fixed term and at completion of the contract term the customer takes possession of the equipment. The Company has determined that it is a dealer lessor and provision of this equipment to the customer is classified as a finance lease. As a result, upon delivery of the leased equipment at the inception of the arrangement, a selling profit is recognized based on the fair value of the underlying equipment less the cost of the equipment. Over the term of the agreement, the minimum lease payment is deducted from the proceeds of the bundle sales in order to reduce the net investment in the corresponding lease receivable over the contract term and interest income is recognized as the discount on the lease receivable unwinds. The remaining proceeds from the contract are accounted for under IFRS 15, Revenue from Contracts with Customers (“IFRS 15”), using the policies described above.
The Company assess biopharma contracts upon execution of each contract given their unique nature. The Company establishes each performance obligation within the contract and determines the appropriate value to be ascribed to be each performance obligation. When relevant the Company utilizes previous established SSPs of its dry lab and bundle solutions or other service. When the performance obligation is specific to only the contract the Company utilizes all available information to reasonable estimate the correct value allocated to the performance obligation.
Contract Balances
Deferred contract costs
Deferred contract costs comprise deferred fulfillment costs related to biopharma, prepayments on contracts, and prepaid maintenance costs relating to DNA sequencing automation equipment.
Costs are incurred to fulfill obligations under certain contracts once obtained, but before transferring goods or services to the customer. Fulfillment costs are recognized as an asset, provided these costs are not addressed by other accounting standards, if the following criteria are met: (i) the costs relate directly to a contract or an anticipated contract that the Company can specifically identify, (ii) the costs generate or enhance resources of the Company that will be used in satisfying (or continuing to satisfy) performance obligations in the future and (iii) the costs are expected to be recovered.
The asset recognized from deferring the costs to fulfill a contract is recorded in the consolidated balance sheet as deferred contract costs within other current assets and amortized on a systematic basis consistent with the pattern of the transfer of the goods or services to which the asset relates, which



depends on the nature of the performance obligation(s) in the contract. The amortization of these assets is recorded in cost of revenue.
The timing of revenue recognition and billings can result in accrued contract revenue, which are presented within accounts receivable in the consolidated balance sheet and deferred contract revenue which is presented on the face of the consolidated balance sheet.
Deferred contract revenue
Deferred contract revenue relates to prepayments received from customers before revenue is recognized and is primarily related to SOPHiA DDM Platform analyses invoiced in advance of the customers performing the analyses, deferred Alamut software revenue and progress payments received as part of biopharma contracts.
Deferred contract revenue brought forward as of January 1, 2023 and 2022 amounts to $3.4 million and $4.0 million, respectively. During the twelve months ended December 31, 2023 and 2022, the Company satisfied the performance obligations associated with that deferred contract revenue to the extent that revenue was recognized of $3.4 million and $4.0 million, respectively.
The majority of the platform revenue is derived from contracts with an original expected length of one year or less. However, there are certain biopharma and Alamut contracts in which performance obligations extend over multiple years. The Company has elected to apply the practical expedient not to disclose the value of remaining performance obligations associated with these types of contracts.



Disaggregated Revenue
When disaggregating revenue, the Company considered all of the economic factors that may affect its revenues. The Company assess its revenues by four geographic regions Europe, the Middle East, and Africa (“EMEA”); North America (“NORAM”); Latin America (“LATAM”); and Asia-Pacific (“APAC”). Additionally, the Company assess revenues generated in its domiciled country and any country with significant revenue. The following tables disaggregate the Company's revenue from contracts with customers by geographic market (in USD thousands):
Year ended December 31,
202320222021
Switzerland$1,432 $1,340 $1,408 
France10,076 7,252 7,433 
Italy8,554 6,761 6,143 
Spain6,512 4,665 3,757 
Rest of EMEA17,384 14,860 12,842 
EMEA$43,958 $34,878 $31,583 
United States$9,465 $5,581 $3,918 
Rest of NORAM1,261 1,151 812 
NORAM$10,726 $6,732 $4,730 
LATAM$3,990 $3,003 $2,295 
APAC$3,697 $2,947 $1,842 
Total revenue$62,371 $47,560 $40,450 
Revenue streams
The Company’s revenue from contracts with customers has been allocated to the revenue streams indicated in the table below (in USD thousands):
Year ended December 31,
202320222021
SOPHiA DDM Platform$60,904 $45,679 $39,465 
Workflow equipment and services1,467 1,881 985 
Total revenue$62,371 $47,560 $40,450 
Workflow equipment and services includes revenues from payments from leased equipment recognized under IFRS 16, Leases, of less than $0.1 million, $0.1 million, and $0.2 million for the years ended December 31, 2023, 2022, and 2021, respectively.



5. Cost of revenue
Accounting policies
Cost of revenue comprises costs directly incurred in earning revenue, including computer costs and data storage fees paid to hosting providers, manufacturing costs, materials and consumables, the cost of equipment leased out under finance leases, personnel-related expenses and amortization of capitalized development costs.
6. Operating expense
Accounting policies
Research and development
Research and development costs consist of personnel and related expenses for technology, application, and product development, depreciation and amortization, laboratory supplies, consulting services, computer costs and data storage fees paid to hosting providers related to research and development and allocated overhead costs. These costs are stated net of government grants for research and development and innovation received as tax credits and net of capitalized costs.
Government grants for research and development and innovation received as tax credits
The Company receives government grants in France for research and development and innovation by way of tax credits. Total government grants for research and development and innovation recognized in the statement of loss amounts to $1.1 million, $1.3 million, $1.6 million for the years ended December 31, 2023, 2022, and 2021, respectively.
Selling and marketing costs
Selling and marketing costs consist of personnel and related expenses for the employees of the sales and marketing organization, costs of communications materials that are produced to generate greater awareness and utilization of the platform among customers, costs of third-party market research, costs related to transportation and distribution of our products, and allocated overhead costs. The Company also records increases to, reversals of, and write-offs of the allowance for expected credit losses to selling and marketing costs.
The Company pays sales commission to its employees for obtaining contracts. These costs are expensed as part of employee compensation in selling and marketing costs. They are not capitalized as contract costs as the commissions either represent bonuses payable for revenue earned in the period or have a service condition attached.
General and administrative costs
General and administrative costs consist of personnel and related expenses for our executive, accounting and finance, legal, quality, support and human resources functions, depreciation and amortization, professional services fees incurred by these functions, general corporate costs and allocated overhead costs, which include occupancy costs and information technology costs.



Operating expense by nature
The table presents operating expenses by nature (in USD thousands):
For the year ended December 31,
202320222021
Changes in inventories of finished goods and work in progress$145 $47 $568 
Raw materials and consumables used(17,504)(13,341)(9,650)
Employee benefit expenses(60,323)(59,333)(53,802)
Social charges(11,956)(11,480)(8,373)
Research tax credit1,129 1,292 1,597 
Share-based compensation(15,242)(13,613)(8,514)
Depreciation(5,508)(3,791)(2,517)
Amortization(2,828)(1,780)(1,092)
Professional fees(14,245)(13,837)(11,318)
Laboratory and office expenses(6,279)(6,635)(5,333)
Travel(3,087)(3,217)(1,576)
Marketing(1,767)(2,213)(1,493)
Licenses(4,235)(3,949)(2,021)
Less: capitalized software development costs ("Note 17 - Intangible assets”)7,469 5,820 3,858 
Other expense(3,920)(9,730)(12,381)
Total$(138,151)$(135,760)$(112,047)
Depreciation and amortization have been charged in the following expense categories (in USD thousands):
For the year ended December 31,
202320222021
DepreciationAmortizationDepreciationAmortizationDepreciationAmortization
Cost of revenue$— $(2,099)$— $(1,133)$— $(483)
Research and development costs(2,494)— (1,748)— (1,028)— 
Selling and marketing costs(1,468)— (906)— (744)— 
General and administrative costs(1,546)(729)(1,137)(647)(745)(609)
Total$(5,508)$(2,828)$(3,791)$(1,780)$(2,517)$(1,092)



The table presents employee costs by function, which consists of “Employee benefit expenses”, “Social charges” and “Share-based compensation” from the operating expense table (in USD thousands):
For the year ended December 31,
202320222021
Research and development costs31,280 29,169 23,899 
Selling and marketing costs20,174 20,216 21,659 
General and administrative costs36,067 35,041 25,131 
Total$87,521 $84,426 $70,689 
7. Other operating income, net
Accounting policies
The Company records income and expenses that are not regularly occurring or normal business income and expense to other operating income (expense). Other operating income (expense) consists of government grants, gains on disposal of tangible assets, intangible write-offs, and other operating income (expense).
8. Interest income (expense), net and foreign exchange and other losses
December 31,
202320222021
Interest income$4,547 $1,324 $20 
Total interest income$4,547 $1,324 $20 
Interest on loans— — (120)
Interest on lease liabilities(545)(422)(225)
Other interest(43)(217)(313)
Total interest expense$(588)$(639)$(658)
Total Interest income (expense), net$3,959 $685 $(638)
December 31,
202320222021
Derivative fair value (losses)— — (1,444)
Foreign exchange gains (losses), net(7,628)(447)64 
Total foreign exchange and other losses$(7,628)$(447)$(1,380)

Accounting policies
Interest income consists of interest income earned on cash and cash equivalents, short-term investments, and lease receivables.
Interest expense on lease liabilities and loans, which includes, interest on commercial borrowings.



The foreign exchange gains and losses arise principally on intercompany receivable balances in the parent company, whose functional currency is the Swiss Franc.
9. Income tax
Material accounting estimates and judgments
Uncertain tax positions
The Company files tax returns as prescribed by the tax laws of the jurisdictions in which it operates and therefore could be subject to tax examination by various taxing authorities. In the normal course of business, the Company is subject to examination by local tax authorities in Switzerland, France, Italy, Brazil, the UK, the US, and Australia. In 2022 a tax assessment examination was rendered by the French tax authority during an audit of the Company’s 2018 and 2019 tax returns. In 2023, a tax assessment was rendered by the French tax authority during the review of the 2022 tax return as discussed below. The Company is not aware of any additional issues that could result in any other significant payments, accruals or material deviation from its tax positions. There were no other tax examinations in progress as of December 31, 2023.
The Company records tax liabilities or benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances and information available at the reporting date. There is inherent uncertainty in quantifying income tax positions, especially considering the complex tax laws and regulations in each of the jurisdictions in which the Company operates.
Accounting policies
The Company is subject to taxes in different countries. Taxes and related fiscal assets and liabilities recognized in the Company’s consolidated financial statements reflect management’s best estimate of the outcome based on the facts known at the balance sheet date in each individual country. These facts may include but are not limited to change in tax laws and interpretation thereof in the various jurisdictions where the Company operates. They may have an impact on the income tax as well as the resulting income tax assets and liabilities. Any differences between tax estimates and final tax assessments are charged to the statement of income/loss in the period in which they are incurred. Taxes include current and deferred taxes on income as well as actual or potential withholding taxes on current and expected transfers of income from subsidiaries and tax adjustments relating to prior years. Income tax is recognized in the statement of income/loss, except to the extent that it relates to an item directly taken to other comprehensive income/loss or equity, in which case it is recognized against other comprehensive income/loss or equity, respectively.
Current income tax liabilities refer to the portion of the tax on the current year taxable profit (as determined according to the rules of the taxation authorities) and includes uncertain tax liabilities. The Company determines the taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates consistently with the tax treatment used or planned to be used in its income tax filings if the Company concludes it is probable that the taxation authority will accept an uncertain tax treatment.
Otherwise, the Company reflects the effect of uncertainty using either the most likely outcome or the expected value outcome, depending on which method the entity expects to better predict the resolution of the uncertainty.
Deferred taxes are based on the temporary differences that arise when taxation authorities recognize and measure assets and liabilities with rules that differ from the accounting policies of the Company’s consolidated financial statements. They also arise on temporary differences stemming from tax losses carried forward. Deferred taxes are measured at the rates of tax expected to prevail when the temporary differences reverse, subject to such rates being substantively enacted at the balance sheet date. Any



changes of the tax rates are recognized in the statement of income/loss unless related to items directly recognized against other comprehensive income. Deferred tax liabilities are recognized on all taxable temporary differences excluding non-deductible goodwill. Deferred tax assets are recognized for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Future taxable profits are determined based on the reversal of relevant taxable temporary differences. If the amount of taxable temporary differences is insufficient to recognize a deferred tax asset in full, then future taxable profits, adjusted for reversals of existing temporary differences, are considered, on the basis of the business plans for individual subsidiaries in the Company. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized; such reductions are reversed when the probability of future taxable profits improves.
The tax impact of a transaction or item can be uncertain until a conclusion is reached with the relevant tax authority or through a legal process. The Company uses in-house tax experts when assessing uncertain tax positions and seeks the advice of external professional advisors where appropriate. The assessment of the uncertain tax position is done by first making a determination of whether it is more likely than not that a tax position would be sustained upon an examination, and then by calculating the amount of the benefit, of that tax position that meets the more likely than not threshold, that should be recognized in the financial statements.
As of December 31, 2023, and 2022, the Company recorded a provision of less than $0.1 million and a release of $0.3 million for unrecognized tax liabilities including interest and penalties. The Company records interest and penalties related to income tax amounts as a component of income tax expense.
France tax audit
The French tax authority issued a tax assessment in December 2022 that reduced the balance of the Company’s tax losses carryforward in France by $1.8 million ($0.5 million tax effected amount) stemming from a review of the Company’s transfer pricing policy. The tax assessment is subject to appeal. However, the Company has elected to take a conservative approach and adjusted the balance of its deferred tax assets to reflect the reduction in the balance of tax losses carryforward. The tax assessment in France has resulted in no other material tax liability or payment. In 2023, the French tax authority performed a review of the Company’s 2022 French tax return. No tax assessments resulted from the review of the 2022 French tax return.



Presentation of tax (expense) benefits
The following table presents the current and deferred tax (expense) benefits (in USD thousands):
For the year ended December 31,
202320222021
Current income tax expense
Current year$(215)$(310)$— 
Uncertain tax positions(40)328 (110)
Total current income tax expense$(255)$18 $(110)
Deferred income tax (expense) benefit
Origination and reversal of temporary differences$(231)$118 $(58)
Total deferred income tax (expense) benefit$(231)$118 $(58)
Total income tax (expense) benefit$(486)$136 $(168)
The following table presents the reconciliation of the expected tax expense to the tax expense report in the statement of loss (in USD thousands):
For the year ended December 31,
202320222021
Loss before tax$(77,893)$(87,585)$(73,507)
Tax at Swiss statutory rate10,453 11,749 9,907 
Effect of tax rates in foreign jurisdictions(833)(292)(218)
Tax effect of:
Unrecognized deferred tax assets(8,879)(9,386)(9,077)
Income not subject to tax (expense not deductible for tax purposes)(1,782)(1,940)(805)
Uncertain tax positions(40)328 (110)
Recognition of deferred tax assets from previously unrecognized tax assets— 509 — 
2018-2019 French tax assessment— (427)— 
Other595 (405)135 
Income tax (expense)/benefit$(486)$136 $(168)



Movement in the deferred tax balances
During the year ended December 31, 2023, the Company recognized deferred tax assets for its foreign subsidiaries due to intercompany transfer pricing arrangements that will assure realization of their respective deferred tax assets in each country. The following table presents the changes in the Company’s deferred tax assets and deferred tax liabilities (in USD thousands):
Depreciation &
amortization		Bad debt reservesAccrued pensionROU assetLease liabilityOtherNet operating loss
carryforward		Total
January 1, 2023$(80)$— $9 $(302)$511 $852 $950 $1,940 
Recognized in profit or loss62 — 54 (447)270 (155)36 (180)
Recognized in OCI— — (64)— — — — (64)
Currency translation differences(1)— 1 (12)13 (1)24 24 
December 31, 2023$(19)$— $— $(761)$794 $696 $1,010 $1,720 
Deferred tax assets— — — — 794 806 1,010 2,610 
Deferred tax liabilities(19)— — (761)— (110)— (890)
Depreciation &
amortization		Bad debt reservesAccrued pensionROU assetLease liabilityOtherNet operating loss
carryforward		Total
January 1, 2022$(29)$341 $44 $(352)$630 $96 $1,260 $1,990 
Recognized in profit or loss(50)(324)26 60 (119)725 (201)117 
Recognized in OCI— — (59)— — — — (59)
Currency translation differences(1)(17)(2)(10)— 31 (109)(108)
December 31, 2022$(80)$— $9 $(302)$511 $852 $950 $1,940 
Deferred tax assets— — 9 — 511 940 950 2,410 
Deferred tax liabilities(80)— — (302)— (88)— (470)
Unrecognized deferred tax assets
As of December 31, 2023 and 2022, the Company recognized deferred tax assets to the extent that it was probable that they would be realized. The following table consists of the deferred tax assets that have not



been recognized because it is not probable that there will be future taxable profits to use these benefits (in USD thousands):
December 31,
20232022
Gross amountTax effectGross amountTax effect
Deductible temporary differences$4,652 $710 $3,385 $511 
Net operating loss carryforwards344,887 44,614 263,486 34,224 
Total$349,539 $45,324 $266,871 $34,735 
Net operating loss carryforwards
As of December 31, 2023 and 2022, the Company had various net operating loss (“NOL”) carryforwards in Switzerland, France, the UK, the US, and Brazil that are available to reduce future taxable income and income taxes, the majority of which will expire at various dates through 2030. As of December 31, 2023 and 2022, the Company had the following expiring amounts of unrecognized NOL carryforwards (in USD thousands):
December 31,
20232022
One year$17,873 $12,007 
Two years17,103 16,261 
Three years25,846 15,561 
Four years53,648 23,515 
Thereafter and unlimited230,417 196,142 
Net operating loss carryforwards$344,887 $263,486 
Future realization of the tax benefits of existing temporary differences and NOL carryforwards ultimately depends on the existence of sufficient taxable income within the carryforward period. As of December 31, 2023, the Company performed an evaluation to determine the likelihood of realization of these tax benefits. In assessing the realization of the deferred tax assets, the Company considered whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company considered all available evidence, both positive and negative, which included the results of operations for the current and preceding years. The Company determined that it was not possible to reasonably quantify future taxable income and determined that it is not probable that all of the deferred tax assets will be realized in Switzerland and Brazil but has recognized deferred tax assets in France, the UK and the US.
Unrecognized deferred tax liability on retained earnings of subsidiaries
The Company reviews its plan to indefinitely reinvest on a periodic basis for each one of its foreign subsidiaries. In making its decision to indefinitely reinvest, the Company evaluates its plans of reinvestment, its ability to control repatriation and to mobilize funds without triggering basis differences, and the profitability of its Swiss operations and associated cash requirements and the need, if any, to repatriate funds. If the assessment of the Company with respect to any earnings of its foreign subsidiaries’ changes, deferred Swiss income taxes, foreign income taxes, and foreign withholding taxes may have to be accrued.

The Company does not provide for foreign income and withholding taxes, Swiss income taxes or tax benefits on the excess of the financial reporting basis over the tax basis of its investments in foreign



subsidiaries to the extent that such amounts are indefinitely reinvested to support operations and continued growth plans outside of Switzerland, or if the Company has determined that no tax liability would arise in case of distribution.

As of December 31, 2023, the Company plans to indefinitely reinvest any undistributed foreign earnings for all its foreign subsidiaries except France. During the year 2023, the Company received a dividend payment from its French subsidiary in the amount of $2.4 million, paid on December 12, 2023. During the year 2022, the Company received a dividend payment from its French subsidiary in the amount of $3.4 million.

The Company has determined that the repatriation of foreign earnings from France does not trigger a tax liability, based on the application of Swiss Participation Exemption rules and exemptions provided by the Double Tax Treaty signed between France and Switzerland, based on which dividends are exempt from withholding tax. The total amount of temporary differences associated with the other investments in subsidiaries is not material.
10. Loss per share
The Company’s shares comprised of ordinary shares. Each share has a nominal value of $0.05 (CHF 0.05). The basic loss per share is calculated by dividing the net loss attributable to shareholders by the weighted average number of shares in issue during the period. The table presents the loss for the year ended December 31, 2023, 2022, and 2021, respectively (in USD thousands, except shares and loss per share):
Year ended December 31,
202320222021
Net loss attributed to shareholders$(78,981)$(87,449)$(73,675)
Weighted average number of shares in issue64,750,886 64,099,213 55,299,863 
Basic and diluted loss per share$(1.22)$(1.36)$(1.33)
11. Cash and cash equivalents
Accounting policies
Cash and cash equivalents include cash on hand, deposits held at call with external financial institutions and other short- term highly liquid investments with original maturities of three months or less. They are both readily convertible to known amounts of cash and so near to their maturity that they present insignificant risk of changes in value because of changes in interest rates. Amounts held in money market funds held as cash equivalents and are classified as level 1 fair value financial instrument.



The following table presents the allocation between the Company’s cash and cash equivalents (in USD thousands):
December 31,
20232022
Bank balances$16,068 $25,820 
Total cash$16,068 $25,820 
Money market funds$60,683 $85,252 
Term deposits less than 3 months$46,500 $50,233 
Total cash equivalents$107,183 $135,485 
Cash and cash equivalents$123,251 $161,305 

Designated cash
In July 2021, the Company designated $30.0 million to a separate bank account to be used exclusively to settle potential liabilities arising from claims against Directors and Officers covered under the Company’s Directors and Officers Insurances Policy (“D&O Policy”). Setting up the designated account has significantly reduced the premiums associated with the D&O Policy. In June 2023, the Company obtained a new D&O Policy that allowed it to reduce the designated cash amount set aside in the separate bank account from $30.0 million to $15 million. The new D&O policy and reduction of designated cash are effective as of July 2023. The Company expects to continue to designate this cash balance for this sole use under the D&O Policy.
12. Term deposits
The following table presents the allocation between the Company’s term deposits (in USD thousands):
December 31,
20232022
Term deposits, over 3 months, up to 12 months$— $17,307 
Total term deposits$— $17,307 
13. Accounts receivable
Material accounting estimates and judgments
The Company has adopted the simplified method indicated in IFRS 9, Financial Instruments (“IFRS 9”), to build its allowance for expected credit losses (“ECL”). The Company uses a matrix based on a calculation of collectability rates according to historical accounts receivable. Allowance is made for lifetime expected credit losses as invoices are issued. The amount of allowance initially recognized is based on historical experience, tempered by expected changes in future cash collections, due to, for example, expected improved customer liquidity or more active credit management.
Accounting policies
Accounts receivable balances are non-interest bearing and payment terms are generally under agreements with payment terms of up to 180 days. The Company’s customers primarily consist of



government-owned or government-funded hospitals, laboratories with a low credit risk, and biopharmaceutical companies. The Company has had minimal instances of actual credit losses and considers that this will continue to be the case.
The following table presents the accounts receivable and lease receivable less the expected credit loss (in USD thousands):
As of December 31,
20232022
Accounts receivable$10,259 $6,060 
Accrued contract revenue4,451 1,499 
Lease receivable28 185 
Allowance for expected credit losses(1,181)(1,095)
Net accounts receivable$13,557 $6,649 
The movement in the allowance for expected credit losses in accounts receivable is presented below (in USD thousands):
20232022
As of January 1$1,095 $1,676 
Increase1,311 404 
Reversals(1,097)(804)
Write-off(226)(67)
Currency translation differences98 (114)
As of December 31$1,181 $1,095 
As of December 31, 2023 and 2022, the Company’s largest customer balance represented 24% and 15% of accounts receivable. All customer balances that individually exceeded 1% of accounts receivable in aggregate amounted to $6.7 million and $5.4 million as of December 31, 2023 and 2022, respectively.
Accounts receivable includes amounts receivable that relate to leases. The Company is the lessor under finance leases related to the leasing out of DNA sequencing automation equipment. The Company recorded no long-term lease receivables as of December 31, 2023 and 2022, respectively. As of December 31, 2023 and 2022, the Company had recorded net lease receivables in the amount of less than $0.1 million and $0.2 million.
14. Inventory
Accounting policies
Raw materials and finished goods are stated at the lower of cost calculated using the first-in, first-out (“FIFO”) method and net realizable value. Work in progress is stated at the lower of its weighted average cost and net realizable value. Cost comprises direct materials, direct labor and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity.



Inventory consists of the following (in USD thousands):
December 31,
20232022
Raw materials$7,007 $5,195 
Work in progress1,482 1,340 
Finished goods127 124 
Provision(2,134)(1,503)
Total$6,482 $5,156 
Inventory provision movement for the years ended December 31, 2023 and 2022, respectively are as follows (in USD thousands):
20232022
As of January 1$(1,503)$(793)
Increase in provision(448)(697)
Currency Translation Adjustment(183)(13)
As of December 31$(2,134)$(1,503)
15. Prepaids and other current assets
The following table presents the other current assets (in USD thousands):
As of December 31,
20232022
Prepayments$2,764$3,703
VAT receivable1,483 1,244 
Government grants receivable165 160 
Other345 731 
Total$4,757 $5,838 
16. Property and equipment
Accounting policies
Property and equipment include leasehold improvements, computer hardware, machinery and furniture and fixtures.
Property and equipment are shown on the balance sheet at their historical cost. The cost of an asset, less any residual value, is depreciated using the straight-line method over the useful life of the asset. For this purpose, assets with similar useful lives have been grouped as follows:
•Leasehold improvements—Shorter of the useful life of the asset or the remaining term of the lease
•Computer hardware—Three to five years



•Machinery and equipment—Five years
•Furniture and fixtures—Five years
Useful lives, components, and residual amounts are reviewed annually. Such a review takes into consideration the nature of the assets, their intended use, including but not limited to the closure of facilities, and the evolution of the technology and competitive pressures that may lead to technical obsolescence. Depreciation of property and equipment is allocated to the appropriate headings of expenses by function in the statement of loss.
Reviews of the carrying amount of the Company’s property and equipment are performed when there is an indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. The recoverable amount of an asset is the greater of its value in use and its fair value less costs of disposal. In assessing the value in use, the estimated future cash flows are discounted to their present value, based on the time value of money and the risks specific to the country where the assets are located.
For the year ended December 31, 2023 and 2022, the Company recorded $0.2 million and $0.1 million in accrued expense related to amounts to be paid within the next 12 months, respectively.
Property and equipment, net movement for the years ended December 31, 2023 and 2022, respectively are as follows (in USD thousands):
Leasehold improvementsMachinery and equipmentComputer hardwareFurniture and fixturesTotal
January 1, 2023$6,182 $1,626 $1,633 $1,108 $10,549 
Additions937 176 359 118 1,590 
Disposals(854)— (623)(4)(1,481)
Currency Translation Adjustment590 173 91 88 942 
December 31, 2023$6,855 $1,975 $1,460 $1,310 $11,600 
Accumulated depreciation
January 1, 2023$(1,165)$(665)$(1,143)$(447)$(3,420)
Additions(1,147)(246)(229)(240)(1,862)
Disposals844 — 604 4 1,452 
Currency Translation Adjustment(108)(82)(63)(48)(301)
December 31, 2023$(1,576)$(993)$(831)$(731)$(4,131)
Net book value at December 31, 2023$5,279 $982 $629 $579 $7,469 



Leasehold improvementsMachinery and equipmentComputer hardwareFurniture and fixturesTotal
January 1, 2022$3,260 $1,116 $1,855 $1,007 $7,238 
Additions2,895 480 147 222 3,744 
Disposals— — (319)(113)(432)
Currency Translation Adjustment27 30 (50)(8)(1)
December 31, 2022$6,182 $1,626 $1,633 $1,108 $10,549 
Accumulated depreciation
January 1, 2022$(570)$(418)$(1,228)$(359)$(2,575)
Additions(588)(224)(273)(206)(1,291)
Disposals— — 319 113 432 
Currency Translation Adjustment(7)(23)39 5 14 
December 31, 2022$(1,165)$(665)$(1,143)$(447)$(3,420)
Net book value at December 31, 2022$5,017 $961 $490 $661 $7,129 
17. Intangible Assets
Material accounting estimates and judgments
Goodwill
The Company operates as one segment or as a single cash-generating unit (“CGU”). As a single CGU, goodwill is tested by considering its recoverability in terms of the entire business. Management assesses the recoverable value of goodwill by comparing the Company’s equity value, either from observable market prices or based on discounted cash flow forecasts, to the net assets as reported in the Company’s consolidated financial statements. The value as of October 1, 2023 was based on the Company’s market capitalization, which is a factor of the Company’s outstanding shares multiplied by the price of the Company’s stock on October 1, 2023.
The value as of October 1, 2022 was based on the Company’s discounted cash flow projections, which in turn were based on historical results and ratios updated to reflect management’s expectations of future growth and profitability and discounted using a weighted average cost of capital derived from an analysis of comparable selected public companies.
Capitalized internally developed software costs
Capitalized costs are based on the employment costs of individuals working on software development and based on timesheets. Special attention is paid to distinguishing between costs incurred on developing new software or software upgrades, which may be eligible for capitalization, and costs incurred in maintenance and in the correction of problems, which is not eligible.
Judgment is required in identifying whether individual projects meet all of the criteria required to permit capitalization, in particular, whether the software will generate probable future economic benefits.



Accounting policies
Goodwill
Goodwill is initially measured as the difference between the aggregate of the value of the consideration transferred and the fair value of net assets acquired. Goodwill is not amortized but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.
Impairment testing
Intangible assets are allocated to CGUs for the purpose of impairment testing. The allocation is made to those CGUs or groups of CGUs that are expected to benefit from the business combination in which the goodwill arose. The CGUs or groups of CGUs are identified at the lowest level at which goodwill is monitored for internal management purposes, being the operating segments. As the Company operates as a single operating segment or CGU, the Company has only a single cash generating unit for impairment testing.
Management assesses the recoverable value of goodwill by comparing the value of the Company equity value, either inferred from the public prices of share issues based on the fair value less cost of disposal (“FVLCOD”) method or based on discounted cash flow forecasts, with the net assets as reported in its consolidated financial statements based on the value in use (“ViU”) method. The discounted cash flow approach involves key assumptions that leave considerable scope for judgment.The Company typically compares the two methods and utilizes the greater recoverable amount for the purposes of its impairment testing. Impairment testing is performed on an annual basis as of October 1. The value as of October 1, 2023 was based on our market capitalization, which is a factor of the Company’s outstanding shares multiplied by the price of the Company’s stock on October 1, 2023. The Company used the discounted cash flow method for the fiscal year ended as of December 31, 2022.
Purchased software
The costs of accessing software services are not capitalized if the Company does not have any contractual right to take possession of the software at any time during the term of the agreement and it is not feasible for the Company either to run the software on its own hardware or to contract with a third party unrelated to the vendor. Such costs represent software as a service costs and are expensed as incurred.
The Company does capitalize software implementation costs, such as fees paid to outside consultants to set up a software arrangement.
For cloud computing costs, the Company capitalized costs for certain configuration and customization costs paid by a customer in a cloud computing or hosting arrangement. The guidance aligns the accounting treatment of these costs incurred in a hosting arrangement treated as a service contract with the requirements for capitalization and amortization costs to develop or obtain an intangible asset.
Purchased software and associated capitalized costs are amortized using the straight-line method over an estimated life of five years.
Capitalized internally developed software costs
Costs incurred in the internal development of software are capitalized as intangible assets when the criteria required by IAS 38 as set out below is satisfied.



Software development costs consist entirely of capitalized internally generated costs that are directly attributable to the design, testing and enhancement of identifiable and unique software applications and products controlled by the Company and incorporated principally within the Company’s SOPHiA DDM Platform. They are recognized as intangible assets where the following criteria are met:
•it is technically feasible to complete the software so that it will be available for use;
•management intends to complete the software and use or sell it;
•there is an ability to use or sell the software;
•it can be demonstrated how the software will generate probable future economic benefits;
•adequate technical, financial and other resources to complete the development and to use or sell the software are available, and;
•the expenditure attributable to the software during its development can be reliably measured.
Directly attributable costs that are capitalized as part of the software comprise principally employee costs. Capitalized development costs are recorded as intangible assets and amortized from the point at which the asset is ready for use on a straight-line basis over its expected useful life. Capitalized software development costs are amortized using the straight-line method over an estimated life of five years.
The Company considers that it is only since the beginning of 2020 that development costs have fulfilled the criteria for recognition as intangible assets set out in IAS 38.
Intangible assets, net movement for the years ended December 31, 2023 and 2022, respectively are as follows (in USD thousands):
GoodwillPurchased softwareCapitalized internally developed software costsTotal intangible assets
January 1, 2023$8,188 $3,530 $12,191 $23,909 
Additions— 263 7,469 7,732 
Disposals— — — — 
Currency Translation Adjustment811 369 1,707 2,887 
December 31, 2023$8,999 $4,162 $21,367 $34,528 
Accumulated amortization
January 1, 2023$— $(2,052)$(1,894)$(3,946)
Additions— (698)(2,130)(2,828)
Disposals— — — — 
Currency Translation Adjustment— (251)(318)(569)
December 31, 2023$— $(3,001)$(4,342)$(7,343)
Net book value at December 31, 2023$8,999 $1,161 $17,025 $27,185 



GoodwillPurchased softwareCapitalized internally developed software costsTotal intangible assets
January 1, 2022$8,298 $3,090 $6,359 $17,747 
Additions— 464 5,820 6,284 
Disposals— — (80)(80)
Currency Translation Adjustment(110)(24)92 (42)
December 31, 2022$8,188 $3,530 $12,191 $23,909 
Accumulated amortization
January 1, 2022$— $(1,432)$(642)$(2,074)
Additions— (618)(1,162)(1,780)
Disposals— — 7 7 
Currency Translation Adjustment— (2)(97)(99)
December 31, 2022$— $(2,052)$(1,894)$(3,946)
Net book value at December 31, 2022$8,188 $1,478 $10,297 $19,963 
Goodwill arose from the Company’s acquisition of Interactive Biosoftware (“IBS”) in June 2018. Through this acquisition the Company added Alamut (a genomic mutation interpretation software) to its existing SOPHiA DDM Platform.
Goodwill is tested for impairment on an annual basis as of October 1 and at the occurrence of a potential indication of impairment. A triggering assessment is performed each quarter to ensure no occurrence of impairment triggering events. As of December 31, 2023 and 2022, respectively, no impairment charges were recorded related to the Company’s goodwill.
As of October 1, 2023 the Company utilized the equity method (“FVLCOD”) to perform its annual assessment. The estimated equity value of the Company was $165.8 million, which exceeds the reported net assets of the Company of $158.4 million at that date by $7.3 million.
As of October 1, 2022 the Company utilized a discounted cash flow (“ViU”) method to perform its annual assessment. The Company assessed both the value of goodwill and intangibles using the discounted cash flow method. The Company used the discounted cash flow method in its annual assessment in 2022 given the significant drop in its share price from January 1, 2022, which resulted in a decline in the market capitalization of the Company.
The Company computed the value of the CGU using a discounted cash flow analysis. The discounted cash flow analysis used a forecast of seven years in order to project to a point at which the Company’s financial profile is expected to be more mature, which will allow for a more accurate valuation of the recoverable amount of the CGU. The basis of the projection for the discounted cash flow analysis was an internal plan reviewed and approved by management. The Company based its forecast on an expected compound annual growth rate (“CAGR”) of revenue and applied a weighted average cost of capital (“WACC”) and a terminal free cash flow growth rate to the discounted cash flow projections to calculate its CGU’s value. The Company performed a sensitivity analysis over the WACC, the terminal free cash flow growth rate, and the revenue CAGR.
The Company used a WACC of 12% that was consistent with the range used in publicly available analyst valuations. The Company used a terminal free cash flow growth rate of 3% based on an internal assessment of historical sustainable market growth rates and historical GDP growth figures that was



consistent with the range of rates used in publicly available analyst valuations. The Company performed a sensitivity analysis on the WACC and the terminal free cash flow growth rate to determine the impact on the valuation. The Company determined that the level of WACC and cash flow growth rate at which an impairment of the CGU would occur are 20% for the WACC and a negative cash flow growth rate, respectively.
The Company projected revenue over the seven-year period at a CAGR of 37%, which is consistent with internal forecasts reviewed and approved by Management. The Company performed a sensitivity analysis to determine the CAGR at which an impairment would occur. The Company determined that at a CAGR of 25% over a seven-year period an impairment of the CGU would occur..
On the basis of the analyses performed, the Company concludes that the recoverable amount exceeds the carrying amount of the goodwill and no impairment is needed as of December 31, 2023 and December 31, 2022.
18. Leases
Accounting policies
Lessee
The Company assesses at inception of the contract whether a contract is or contains a lease. This assessment involves determining whether the Company obtains substantially all the economic benefits from the use of that asset, and whether the Company has the right to direct the use of the asset. When these conditions are met, the Company recognizes a right-of-use (“ROU”) asset and a lease liability at the lease commencement date, except for short-term leases of 12 months or less, which are expensed in the statement of income/loss on a straight-line basis over the lease term.
At inception, the ROU asset comprises the initial lease liability, initial direct costs, and any obligations to refurbish the asset, less any incentives granted by the lessors.
The ROU asset is depreciated over the shorter of the duration of the lease contract (including contractually agreed optional extension periods whose exercise is deemed to be reasonably certain) and the useful life of the underlying asset.
The ROU asset is subject to testing for impairment if there is an indicator for impairment, as for owned assets.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that is not readily determinable, the incremental borrowing rate (“IBR”) at the lease commencement date. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the ROU asset in a similar economic environment. Lease payments can include fixed payments; variable payments that depend on an index or rate known at the commencement date; and extension option payments or purchase options that the Company is reasonably certain to exercise.
The lease liability is subsequently measured at amortized cost using the effective interest rate method and remeasured (with a corresponding adjustment to the related ROU asset) when there is a change in future lease payments due to renegotiation, changes in an index or rate or a reassessment of options.
Some of the Company’s leases include options to extend the lease, and these options are included in the lease term to the extent they are reasonably certain to be exercised.



Lessor
The Company leases out laboratory equipment to certain customers. These leases are classified as finance leases as the Company transfers substantially all the risks and rewards incidental to ownership of the asset to the customer.
At the commencement of the lease term, the Company records revenue and the associated costs of sales, being the sale proceeds at fair value of the asset (computed at cost plus a margin) and the cost of the asset, derecognizes the leased asset from inventory, and recognizes a finance lease receivable on the balance sheet equal to the net investment in the lease. As of December 31, 2023, the Company did not have any leases of laboratory equipment.
Company leases
During the year ended December 31, 2023, the Company entered into one significant lease as described below.
Rolle office
On March 3, 2021, the Company entered into a 120-month lease for office space in Rolle, Switzerland primarily to support the expansion of the research and development department. The lease in total is for approximately 65,860 square feet, including an additional 21,258 square feet based on a lease amendment as described below, with the Company gaining access to areas on prescribed dates. The Company gained access to 11,840 square feet on July 1, 2021. The Company gained access to 7,535 square feet on January 1, 2022 and the remaining 21,258 square feet on February 1, 2023. The expected lease commitments resulting from this contract are less than $0.1 million in 2021, $0.5 million in 2022, $1.0 million in 2023 onwards, and $1.14 million from 2024 onward. The expected lease commitments are linked to changes in the Swiss Consumer Price Index as published by Swiss Federal Statistical Office.
On January 25, 2022, the Company entered into an amendment to the lease for office space in Rolle, Switzerland. The amendment provides the Company with an additional floor of approximately 21,258 square feet with lease commencement initiating on April 1, 2022. Upon commencement of the lease, the Company recorded a right-of-use asset of $4.5 million and a lease liability of $4.5 million.
The Company makes fixed payments and additional variable payments depending on the usage of the asset during the contract period. Upon commencement of the lease, the Company recorded a ROU asset of $7.7 million and a lease liability of $8.5 million. The difference between the ROU and lease liability of $0.8 million is driven by lease incentives and expected restoration costs.
Boston office
On August 9, 2021, the Company entered into a 40-month new lease for office space in Boston, Massachusetts to support the expansion of the Company’s growth in the United States. The lease in total for the expansion of the Boston office is approximately 9,192 square feet. The expected lease commitments resulting from this contract are $0.5 million a year starting in 2022 through the end of the lease in 2024. The Company makes fixed payments and additional variable payments depending on the usage of the asset during the contract period. Upon commencement of the lease, the Company recorded a right-of-use asset of $1.2 million and a lease liability of $1.4 million. The difference between the ROU and lease liability of $0.2 million is driven by lease incentives.
Bidart office



On June 1, 2023, the Company entered into a 108-month lease for office space in Bidart, France primarily to support the expansion of the research and development department. The lease in total is for approximately
13,509 square feet. Upon commencement of the lease, the Company recorded a right-of-use asset of $2.3 million and a lease liability of $2.3 million. The expected lease commitments resulting from this contract are $0.1 million in 2023 and $0.3 million per year from 2024 onward.
Leases
Generally, lease terms for office buildings are between one and ten years. Any leases with terms less than 12 months and/or with low value are expensed in accordance with the IFRS 16 practical expedients for short-term leases and low-value leases. These expenses amounted to less than $0.1 million and $0.2 million for the years ended December 31, 2023 and 2022, respectively. The Company had cash outflows related to leases less than 12 months and/or with low value of less than $0.1 million and $0.2 million for the years ended December 31, 2023 and 2022, respectively.
The Company has lease liabilities amounting to $17.8 million and $14.7 million for the years ended December 31, 2023 and 2022, respectively, that are linked to consumer price indices in Switzerland and France.
The future cash flow in relation to short-term leases and leases of low value assets is disclosed in Note 27 – “Commitments and contingencies.”
The future cash flow in relation to leases accounted for under IFRS 16 is disclosed in Note 28 – “Financial instruments.”
The Company has several leases with extension and termination options. Management determines, on the basis of the business needs, whether they expect to exercise these options.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that is not readily determinable, the IBR at the lease commencement date. The IBR is the rate of interest that the Company would have had to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the ROU asset in a similar economic environment. On the basis of this policy, the IBRs used by the Company to discount lease payments outstanding at December 31, 2023 and 2022, respectively, in the countries in which it has recognized right-of-use assets and lease liabilities have been in the range of 2.61% to 4.82% and 2.61% to 3.47%, respectively.
The following table presents the movements in the ROUs (in USD thousands):
20232022
As of January 1$14,268 $11,292 
Additions3,814 5,388 
Depreciation charge(3,646)(2,500)
Currency translation effects1,199 88 
As of December 31$15,635 $14,268 



The following table presents the movements in the lease liabilities (in USD thousands):
20232022
As of January 1$16,743 $13,059 
Additions2,249 5,441 
Cash outflows (principle and interest)(3,361)(2,316)
Non-cash interest545 422 
Currency translation effects2,425 137 
As of December 31$18,601 $16,743 
19. Other non-current assets
Other non-current assets consist of the following (in USD thousands):
December 31,
20232022
Research tax credit receivable$4,743 $3,342 
Guarantee deposits1,357 941 
Total$6,100 $4,283 
20. Accounts payable
Accounts payable consist of the following (in USD thousands):
As of December 31,
20232022
Trade payables2,256 2,170 
Employee related payables2,366 3,655 
VAT, sales, and other taxes769 356 
Total$5,391 $6,181 



21. Accrued expenses
Accrued expenses consist of the following (in USD thousands):
As of December 31,
20232022
Accrued Compensation$13,578 $10,268 
Accrued Professional Fees2,612 2,162 
Accrued Inventory Purchases340 315 
Accrued IT Support613 22 
Accrued Legal Fees79 287 
Accrued Other586 1,451 
Total$17,808 $14,505 
22. Post-employment benefits
Material accounting estimates and judgments
The liability or asset recognized on the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method.
The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms approximating to the terms of the related obligation. In countries where there is no deep market in such bonds, the market rates on government bonds are used.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of income/loss.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. The remeasurement gains and losses are included in retained earnings in the statement of changes in equity and on the balance sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in income as past service costs.
For defined contribution plans, the Company pays contributions to publicly or privately administered pension insurance plans. Employee contributions to these plans is voluntary and these contributions are matched by the employer. The Company has no further payment obligations once the contributions have been paid. The contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available. Contributions are charged to the statement of income/loss as incurred.
Accounting policies
The Company operates defined benefit and defined contribution pension plans. Funded schemes are generally funded through payments to insurance companies or trustee-administered funds, determined by



periodic actuarial calculations. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity (a fund) and has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. A defined benefit plan is a pension plan that is not a defined contribution plan. Typically, defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation.
The actual return on plan assets, excluding interest income measured at the discount rate, is recognized in other comprehensive income/loss within defined benefit plan remeasurements.
The Company has a funded defined benefit plan in Switzerland, an unfunded defined benefit plan in France and a defined contribution plans in the US. The Company has no occupational pension plans in the UK and Brazil.
Swiss pension plan
The Company contracted with the Swiss Life Collective BVG Foundation based in Zurich for the provision of occupational benefits. All benefits in accordance with the regulations are reinsured in their entirety with Swiss Life SA within the framework of the corresponding contract. This pension solution fully reinsures the risks of disability, death and longevity with Swiss Life. Swiss Life invests the vested pension capital and provides a 100% capital and interest guarantee. The pension plan is entitled to an annual bonus from Swiss Life comprising the effective savings, risk and cost results.
Although the amount of ultimate pension benefit is not defined, certain legal obligations of the plan create constructive obligations on the employer to pay further contributions to fund an eventual deficit; this results in the plan nevertheless being accounted for as a defined benefit plan.
French pension plan
In France, the bulk of pensions are paid by national pension schemes, which are unfunded. In addition, French employers are obliged by law to pay a retirement indemnity. Its amount depends on the last salary of the employee and on the period of activity with its employer. Rights to this benefit are acquired during the service life with the same employer on the condition that the employee will be with its employer at retirement date; it means that the rights are only vested on retirement date. This indemnity is in substance a defined benefit plan.
The following table provides additional details on the defined benefit plans’ funded status (in USD thousands):
December 31,
20232022
Present value of defined benefit obligation$(23,013)$(19,252)
Fair value of plan assets19,927 16,577 
Net pension liability$(3,086)$(2,675)



The following table presents the movement in the defined benefit obligation (in USD thousands):
20232022
FundedUnfundedTotalFundedUnfundedTotal
January 1$(19,221)$(31)$(19,252)$(17,686)$(203)$(17,889)
Service Cost(1,311)(10)(1,321)(1,759)(90)(1,849)
of which current service cost(1,748)(10)(1,758)(1,873)(90)(1,963)
of which past service cost including effects from curtailment437 — 437 114 — 114 
Interest expense(413)(1)(414)(154)(2)(156)
Actuarial gains (losses)401 2 403 2,110 250 2,360 
Actual plan participants’ contributions(1,441)— (1,441)(1,361)— (1,361)
Transfers (in) out due to (joiners) leavers1,037 — 1,037 (551)— (551)
Currency translation differences(2,024)(1)(2,025)180 14 194 
December 31$(22,972)$(41)$(23,013)$(19,221)$(31)$(19,252)
The service cost and interest expense are charged to the statement of income/loss as pension cost. Actuarial gains (losses) are credited or charged to other comprehensive income (loss) as defined benefit plan remeasurements.
As of December 31, 2023, the Swiss and French plans had 233 and 97 active members, respectively. As of December 31, 2022, the Swiss and French plans had 248 and 102 active members, respectively.
As a result of the reduction in conversion factors, the Company incurred a past service cost gain including curtailment of $0.4 million for the year ended December 31, 2023.
The following table presents the movement in the defined benefit plans’ assets (in USD thousands):
20232022
As of January 1$16,577 $13,436 
Interest income387 125 
Return on plan assets, excl. interest income(654)(204)
Administrative expenses(70)(71)
Employer contributions1,531 1,452 
Employee contributions1,441 1,361 
Transfers in (out) due to joiners (leavers)(1,037)551 
Currency translation differences1,752 (73)
As of December 31$19,927 $16,577 



The following table presents the defined benefit plan assets, which include the following (in USD thousands):
December 31,
20232022
Cash$528 $664 
Insurance policies19,399 15,913 
Total$19,927 $16,577 
The Swiss Life Collective BVG Foundation, to which the Swiss pension plan is affiliated, manages its funds in the interests of all members, with due attention to the priorities of liquidity, security, and return. The Company’s pension plan benefits from the economies of scale and diversification of risk available through this affiliation. The Company has no influence over the investment policy.
The follow table presents the pension costs recognized in statement of loss (in USD thousands):
December 31,
202320222021
FundedUnfundedTotalFundedUnfundedTotalFundedUnfundedTotal
Service cost$(1,311)$(10)$(1,321)$(1,759)$(90)$(1,849)$(1,054)$(80)$(1,134)
Interest cost(413)(1)(414)(154)(2)(156)(49)(1)(50)
Total recognized$(1,724)$(11)$(1,735)$(1,913)$(92)$(2,005)$(1,103)$(81)$(1,184)
The follow table presents the pension remeasurement recognized in statement of other comprehensive loss (in USD thousands):
December 31,
202320222021
FundedUnfundedTotalFundedUnfundedTotalFundedUnfundedTotal
Changes in demographic assumptions$700 $— $700 $— $223 $223 $1,278 $— $1,278 
Changes in financial assumptions(901)(2)(903)2,311 12 2,323 37 13 50 
Experience adjustments602 4 606 (201)15 (186)(844)13 (831)
Total actuarial gains (losses)401 2 403 2,110 250 2,360 471 26 497 
Return on plan assets(654)— (654)(204)— (204)(32)— (32)
Currency translation differences37 2 39 (4)2 (2)(4)— (4)
Total recognized$(216)$4 $(212)$1,902 $252 $2,154 $435 $26 $461 
The positive impact of changes in demographic assumptions in 2023 was due principally to an increase in the weighted turnover from 15.80% to 19.50%.



The positive impact of changes in demographic assumptions in 2022 was due principally to an increase in the expected employee salaries from 1.25% to 3.00%. This implies that more members are expected to have a higher pensionable amount before pensionable age.
The negative impact of changes in financial assumptions in 2023 was due to a decrease in the discount rate from 2.25% to 1.50%.

The positive impact of changes in financial assumptions in 2022 was due to an increase in the discount rate from 0.30% to 2.25%.
The positive experience adjustments in 2023 was due largely to the surplus between the additional defined benefit obligation attributable to new joiners and the assets that they transferred into the plan.
Key actuarial assumptions by plan
Discount rate
In estimating the defined benefit obligation, the discount rates used were, for the Swiss plan, 1.50% and 2.25% and, for the French plan, 3.55% and 3.90% for the years ended December 31, 2023 and 2022, respectively.
Expected rate of salary increase
The expected rate of annual salary increase was assumed to be, for the Swiss plan 2.75% and 3.00% and for the French plan 3.00% and 3.00% for the years ended December 31, 2023 and 2022, respectively.
Pension plan modified duration
The weighted average modified duration of the Swiss plan is 11.7 and 13.2 years and of the French plan 16.1 and 16.0 years for the years ended December 31, 2023 and 2022, respectively.
Interest rates
For the Swiss plan, the interest on old age accounts is based, for the LPP account, on the LPP interest rate, which was 1.50% and 2.25% and, for the extra mandatory part, is equivalent to the discount rate, which was 1.50% and 2.25% for the years ended December 31, 2023 and 2022, respectively.
Inflation
For the Swiss plan, the expected annual rate of inflation is based on the inflation forecast of the Swiss National Bank and was assumed to be 1.25% and 1.50% for the years ended December 31, 2023 and 2022, respectively.
Mortality tables
Assumptions regarding future mortality experience are set based on actuarial advice provided in accordance with published statistics and experience and are based on the mortality generational tables BGV 2020 (Swiss) and TH/TF 00-02 (French). For the Swiss plan, the average life expectancy in years after retirement of a pensioner retiring at age 65 (male) and 65 (female) on the balance sheet date is, respectively, 22.82 and 22.70 and 24.59 and 22.48, for the years ended December 31, 2023 and 2022, respectively.



Sensitivity analysis
The following tables demonstrate the sensitivity of the defined benefit obligations to changes in the discount rate, expected rates of salary increase, interest credited on savings accounts, inflation and life expectancy at retirement age.
The table below presents the sensitivity analysis for the funded plans (in USD thousands):
20232022
Discount rates
Increase of 25 basis points
(464)(426)
Decrease of 25 basis points
500 467 
Expected rates of salary increases
Increase of 25 basis points
91 110 
Decrease of 25 basis points
(98)(107)
Interest rate
Increase of 25 basis points
160 150 
Decrease of 25 basis points
(157)(146)
Inflation
Increase of 25 basis points
91 102 
Decrease of 25 basis points
(90)(99)
Life expectancy
Increase of 1 year
92 71 
Decrease of 1 year
(92)(71)
The table below presents the sensitivity analysis for the unfunded plans (in USD thousands):
20232022
Discount rates
Increase of 50 basis points
(3)(2)
Decrease of 50 basis points
3 2 
Expected rates of salary increases
Increase of 50 basis points
3 3 
Decrease of 50 basis points
(3)(2)
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the pension liability recognized on the balance sheet.
The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.



Future employer contributions
Expected employer contributions to the Swiss defined benefit pension plan for the year ending December 31, 2024 amount to $1.7 million.
Defined contribution plans
US pension plan
The Company has a multiple employer 401(k) defined contribution plan in the USA. The expense recognized in respect of the defined contribution plan in the USA was $0.4 million and $0.4 million and for the years ended December 31, 2023 and 2022, respectively.
23. Share-based compensation
Material accounting estimates and judgments
Share-based Compensation
For the years ended December 31, 2023 and 2022, we granted share options under one plan - the SOPHiA GENETICS 2021 Equity Incentive Plan (the “2021 Equity Incentive Plan” or the “2021 EIP”). Under this plan, directors may offer options to directors, employees and advisors. The exercise price of the share options is set at the time they are granted. Options, once vested, can be exchanged for an equal number of ordinary shares.
Measuring the cost of share options
The fair value of the options under all plans are measured at each grant date using the Black-Scholes option pricing model, taking into account the terms and conditions upon which the options were granted.
For options up to September 2020, the fair value at grant date is independently determined using an adjusted form of the Black-Scholes option pricing model that takes into account the strike price, the fair value of the share at grant date, the expected life of the award, the expected price volatility of the underlying share, the risk-free interest rate for the term of the award and the expected dividend yield. For options granted on and subsequent to September 2020 until July 22, 2021, the fair value at grant date is based on a probability-weighted expected returns method that takes account of both the value derived by using an adjusted form of the Black-Scholes option pricing model, as described above, and a discounted estimate of the price that might be achieved in a future transaction. For options granted on and subsequent to July 22, 2021, the fair value at grant date is determined by using the Black-Scholes option pricing model.
The Company has used an independent valuation firm to assist in calculating the fair value of the award grants per participant.
The key inputs used in the valuation model, for the stock options granted in the years ended December 31, 2023 and 2022, respectively, are outlined below. Stock options were only granted under the 2021 Employee Incentive Plan (“2021 EIP”). No grants have been made under the 2019 Incentive Share Option Plan (“2019 ISOP”) since 2021 and the SOPHiA GENETICS Incentive Share Option Plan (“2013 ISOP”) since 2019.
Prior to the Company’s IPO, the price of the ordinary shares at grant date, which represents a critical input into this model, has been determined on one of the following two bases:
•By reference to a contemporaneous transaction involving another class of share, using an adjusted form of the Black-Scholes option pricing model as described above, and



considering the timing, amount, liquidation preferences and dividend rights of issues of other classes of shares.
•On the basis of discounted cash flow forecasts, where there was no contemporaneous or closely contemporaneous transaction in another class of share and the time interval was too large to permit an assumption that there had been no significant change in the Company’s equity value.
Subsequent to the IPO, the price of the ordinary shares at grant date, which represents a critical input into this model, has been determined on the most recent close price of the Company’s stock price on the date of grant.
Accounting policies
The Company has three share option plans for directors, employees, and advisors which are accounted for as equity-settled share-based compensation plans.
The fair value of options granted under these plans is recognized as an employee benefits expense, with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the options granted:
•including any market performance conditions (e.g., the entity’s share price);
•excluding the impact of any service and non-market performance vesting conditions (e.g., profitability, sales growth; targets and remaining an employee of the entity over a specified time period), and;
•including the impact of any non-vesting conditions (e.g., the requirement for employees to save or hold shares for a specific period of time).
The total expense is recognized over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. It recognizes the impact of the revision to original estimates, if any, in income, with a corresponding adjustment to equity.
Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which depends on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the share price, or the fair value of a share, the expected life of the share option, the volatility of the share price, the risk-free interest rate, the dividend yield, and making certain assumptions about the inputs. The assumptions used for estimating fair value for share-based payment transactions are disclosed below.
The volatility used in the estimation of fair value is calculated utilizing a mix of the Company’s own share price volatility and the volatility of the share prices of a set list of publicly traded peer companies based on a defined proportion. Share price volatility is calculated for each tranche of share options on a historical basis over a period of time equal to the average life of the share options granted in each tranche. In the event that a company used in the volatility calculation has not been publicly traded for the requisite amount of time, the entirety of its trading history was used.
If the shares are not listed, estimating their fair value also requires determination of the most appropriate valuation model, such as:
•By reference to a contemporaneous transaction involving another class of share, using an adjusted form of an option pricing model above, and considering the timing, amount, liquidation preferences and dividend rights of issues of other classes of shares;



•On the basis of discounted cash flow forecasts, where there was no contemporaneous or closely contemporaneous transaction in another class of share and the time interval was too large to permit an assumption that there had been no significant change in the Company’s equity value;
•Share based compensation expense is measured at the fair value of the options at the grant date and recognized over the vesting period. Share based compensation expense is presented in the statement of income/loss and allocated to the various expense categories based on the functions of the employees to whom the options are granted (e.g., research and development, selling and marketing, general & administrative).
The calculation of the cost of the Company’s share option grants and of the fair value of the ordinary shares at the grant date requires the selection of an appropriate valuation model and is based on key assumptions that leave considerable scope for judgment.
Recognizing the cost of share options
At each reporting date, the Company takes a charge for the vested options granted and for partially earned but non-vested portions of options granted. This results in a front-loaded charge to the statement of loss. Prior to the IPO, at each reporting date, the Company reappraised its estimate of the likelihood and date of a future transaction that would cause all options which would vest six months from the transaction date to vest and, if necessary, accelerated the recognition of the unrecognized cost in the statements of loss. The Company accounts for these plans as equity-settled transactions. The charge to the statements of loss therefore results in a corresponding credit being booked to “Other reserves” within equity.
The plans
The Company has three share option plans: the 2013 ISOP (launched in September 2013), the 2019 ISOP (launched March 2019), and the 2021 EIP (launched June 2021). Under these plans, directors may offer options to directors, employees and advisors. The exercise price of the share options is set at the time they are granted. Options, once vested, can be exchanged for an equal number of ordinary shares. Under the 2021 EIP, the Company can grant restricted stock units (“RSUs”) which represent the right to receive ordinary shares upon meeting specific vesting requirements. RSUs are able to be granted to directors, executives, and employees.
The options have a life of ten years. Options under the 2013 ISOP vest 50% on the second anniversary of the grant date and a further 50% on the third anniversary of the grant date. Options under the 2019 ISOP vest 25% on each anniversary of the grant date over four years. The options under the 2021 EIP vest either 25% on the first anniversary of the grant date and the remaining 75% vesting ratably on a monthly basis over the remaining three years, 25% on the first anniversary of the grant date and the remaining 75% vesting ratably on a quarterly basis over the remaining three years, on the second anniversary of the grant date, or annually over four years on each anniversary of the grant date. Refer to Restricted Stock Units below for the vesting schedules of the RSUs under the 2021 EIP.
On April 22, 2021, the Board amended the 2019 ISOP to the effect that, in the event of a successful IPO or public listing of the Company’s shares, only those unvested options that otherwise would vest within six months following the effective date of the IPO or such public listing should become fully vested immediately as of such date (accelerated vesting). The remaining unvested options (i.e., unvested options that would only vest after the six-month period following the effective date of the IPO or public listing) would not be subject to accelerated vesting and, subject to certain conditions, would vest on the basis of the original vesting schedule. Additionally, the Board instituted a black-out period, irrespective of a successful IPO or public listing of the Company, in which no options could be exercised from May 1, 2021 to January 19, 2022, and to accelerate the vesting of options that would otherwise vest during that period.



2013 ISOP
Activity for the year ended December 31, 2023, under the 2013 ISOP was as follows:
Number of optionsWeighted average exercise priceWeighted average remaining life in years
Outstanding as of January 1, 2023657,980 $2.92 4.24
Exercised(39,000)2.52 — 
Forfeited(12,000)0.05 — 
Outstanding as of December 31, 2023606,980 $3.00 3.49
Exercisable as of December 31, 2023606,980 $3.00 3.49

Activity for the year ended December 31, 2022, under the 2013 ISOP was as follows:
Number of optionsWeighted average exercise priceWeighted average remaining life in years
Outstanding as of January 1, 2022859,540 $2.75 5.08
Exercised(193,560)2.44 — 
Forfeited(8,000)3.19 — 
Outstanding as of December 31, 2022657,980 $2.92 4.24
Exercisable as of December 31, 2022657,980 $2.92 4.24
Options outstanding as of December 31, 2023, under the 2013 ISOP expire between 2024 and 2029.

The weighted average share price at the date of exercise were $4.82 and $7.41 for the years ended December 31, 2023 and 2022, respectively.

2019 ISOP

Activity for the year ended December 31, 2023, under the 2019 ISOP was as follows:
Number of optionsWeighted average exercise priceWeighted average remaining life in years
Outstanding as of January 1, 20232,629,516 4.96 7.21
Exercised(32,000)4.06 — 
Forfeited(195,006)4.94 — 
Outstanding as of December 31, 20232,402,510 $4.97 6.30
Exercisable as of December 31, 20231,651,493 $4.64 6.03




Activity for the year ended December 31, 2022, under the 2019 ISOP was as follows:
Number of optionsWeighted average exercise priceWeighted average remaining life in years
Outstanding as of January 1, 20222,812,500 $5.83 8.61
Exercised(47,000)7.25 — 
Forfeited(135,984)5.15 — 
Outstanding as of December 31, 20222,629,516 $4.96 7.21
Exercisable as of December 31, 20221,476,744 $4.41 6.56
The valuation inputs for the 2019 ISOP grants were as follows:
Twelve months ended December 31,
202320222021
Share price at grant date (in USD)N/AN/A$5.59
Expected life of share options (years)N/AN/A6.05-6.19
Expected volatilityN/AN/A41.26 %-41.45%
Risk free interest rateN/AN/A(0.63)%-(0.48)%
Dividend yield (%)N/AN/A—%
Options outstanding as of December 31, 2023, under the 2019 ISOP expire between 2024 and 2031.

The weighted average share price at the date of exercise were $4.65 and $6.19 for the years ended December 31, 2023 and 2022, respectively.



2021 EIP
Activity for the year ended December 31, 2023, under the 2021 EIP was as follows:
Number of optionsWeighted average exercise priceWeighted average remaining life in years
Outstanding as of January 1, 20232,624,297 $12.32 8.88
Granted3,734,266 4.44 — 
Exercised(5,194)2.63 — 
Forfeited(645,310)$6.43 — 
Outstanding as of December 31, 20235,708,059 $7.84 8.74
Exercisable as of December 31, 20231,155,231 $14.64 7.57

Activity for the year ended December 31, 2022, under the 2021 EIP was as follows:
Number of optionsWeighted average exercise priceWeighted average remaining life in years
Outstanding as of January 1, 20221,576,069 $17.96 9.57
Granted1,336,284 6.03 — 
Forfeited(288,056)14.00 — 
Outstanding as of December 31, 20222,624,297 $12.32 8.88
Exercisable as of December 31, 2022528,693 $17.98 8.04
The valuation inputs for the 2021 EIP grants were as follows:
Year Ended December 31, 
202320222021
Share price at grant date (in USD)$2.53-$4.72$2.06-$8.36$16.81-$18.00
Expected life of share options (years) 5.50 - 7.00 5.50-7.005.50-7.00
Expected volatility (%)69.50 %-74.96%62.65 %-69.43%41.65 %-59.77%
Risk free interest rate (%)3.45 %-4.67%2.42 %-4.00%0.87 %-1.36%
Dividend yield (%)—%—%—%
Options outstanding as of December 31, 2023, under the 2021 EIP expire between 2025 and 2033.

The weighted average share price at the date of exercise was $3.79 for the year ended December 31, 2023 and no options were exercised for the year ended December 31, 2022.

Share options outstanding at the year ended December 31, 2023 



The weighted average fair value of options granted during the years ended December 31, 2023 and 2022, respectively (in USD):
20232022
2021 EIP$2.91 $3.62 
Restricted Stock Units
As part of the 2021 EIP, the Company initiated granting of RSUs, which represent the right to receive shares of ordinary shares upon meeting specified vesting requirements. In the year ended December 31, 2023, the Company granted 2,658,150 RSUs under the 2021 plan. Under the terms of the 2021 plan, 2,260,649 of the RSUs granted are subject to a four-year vesting schedule with 25% vesting on the first anniversary of the grant date and the remaining 75% ratably on a quarterly basis over the remaining three years, 107,647 are subject to a two year vesting period on the second anniversary from the date of grant, and the remaining 289,854 of the RSUs granted to non-executive members of the Company’s board of directors are subject to a vesting period set to be completed upon the Company’s 2024 Annual General Meeting. The activity for the year ended December 31, 2023 was as follows:
Number of RSUsWeighted-average grant date fair value per share
Unvested as of January 1, 20231,865,433 $5.20 
Granted2,658,150 $4.42 
Vested(927,155)$4.65 
Forfeited(261,160)$4.75 
Unvested as of December 31, 20233,335,268 $4.77 
In the year ended December 31, 2022, the Company issued 1,776,832 RSUs under the 2021 plan. Under the terms of the 2021 plan, 1,396,366 of the RSUs issued are subject to a four-year vesting schedule with 25% vesting on the first anniversary of the grant date and the remaining 75% ratably on a monthly basis over the remaining three years, and the remaining 380,466 of the RSUs issued to non-executive members of the Company’s board of directors are subject to a vesting period set to be completed upon the Company’s 2023 Annual General Meeting. The activity for the year ended December 31, 2022 was as follows:
Number of RSUsWeighted-average grant date fair value per share
Unvested as of January 1, 2022287,575 $17.97 
Granted1,776,832 4.30 
Vested(133,056)17.99 
Forfeited(65,918)10.72 
Unvested as of December 31, 20221,865,433 $5.20 



Share-based compensation expense
Movements in the share-based compensation reserve were as follows (in USD thousands):
Total
January 1, 2022$11,462 
Movement in the period13,613 
December 31, 202225,075 
Movement in the period15,242 
December 31, 2023$40,317 
Share-based compensation expense by financial statement caption for all stock awards consists of the following (in USD thousands):
Year ended December 31,
202320222021
Research and development$3,440 $2,245 784
Sales and marketing1,266 1,462 1,227 
General and administrative10,536 9,906 6,503 
Total$15,242 $13,613 $8,514 

24. Borrowings

Revolving credit facility

On June 21, 2022 the Company entered into a credit agreement (“the Credit Facility”) with Credit Suisse SA for up to CHF 5.0 million. Borrowings under the credit facility will bear interest at a rate to be established between the Company and Credit Suisse at the time of each draw down. Borrowings under the Credit Facility have no restrictions related to its use. As of December 31, 2023, the Company had no borrowings outstanding under the Credit Facility.
During the period since January 1, 2020, the Company has not been subject to any externally imposed capital requirements.
25. Share capital issuance
On June 30, 2021, the Company performed a one-to-twenty share split and converted all preferred shares to ordinary shares. Refer to Note 1 – “Company information and operations - Share split.”
On July 22, 2021 as part of the Company IPO, the Company converted all preferred shares to ordinary shares. Refer to Note 1- “Company information and operations - Initial public offering.”
At the next ordinary Annual General Meeting, the Board of Directors will not propose any dividend in respect of the year ended December 31, 2023.



26. Related parties
Related parties comprise the Company’s executive officers and directors, including their affiliates, and any person that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control, with the Company.
Key management personnel comprised of six Executive Officers and Directors and seven Non-Executive Directors for the year ended December 31, 2023. Key management personnel comprised of six Executive Officers and Directors and seven Non-Executive Directors for the year ended December 31, 2022. Key management personnel comprised of six Executive Officers and Directors and six Non-Executive Directors for the year ended December 31, 2021.
Compensation for key management and non-executive directors recognized during the year comprised (in USD thousands):
December 31,
202320222021
Salaries and other short-term employee benefits$4,234 $3,782 $2,805 
Pension costs228 196 117 
Share-based compensation expense10,597 8,936 6,906 
Total$15,059 $12,914 $9,828 
27. Commitments and contingencies
Commitments
The Company has no commitments for future lease payments under short-term leases not recognized on the balance sheet as of December 31, 2023. As of December 31, 2022 the company had commitments for future lease payments under short-term leases not recognized on the balance sheet of $0.2 million.
The Company entered into an agreement with Microsoft Corporation as of November 1, 2022. As part of the agreement, the Company has commitments of approximately $69.4 million in computational and hosting-related costs through October 31, 2027.
Contingencies
As of December 31, 2023 and 2022 the Company had no contingent assets or liabilities.



28. Financial instruments and risks
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
The Company holds the following financial instruments (in USD thousands):

December 31,
20232022
Financial assets at amortized cost
Cash and cash equivalents$123,251 $161,305 
Term deposits— 17,307 
Accounts receivable13,557 6,649 
Other financial non-current assets1,382 965 
Total financial assets at amortized cost$138,190 $186,226 
Financial assets at fair value through statement of loss
Total financial assets$138,190 $186,226 
Financial liabilities at amortized cost
Accounts payable5,391 6,181 
Accrued expenses17,808 14,505 
Lease liabilities18,601 16,743 
Total financial liabilities at amortized cost41,800 37,429 
Financial liabilities at fair value through statement of loss
Total financial liabilities$41,800 $37,429 
The Company’s exposure to various risks associated with the financial instruments is discussed below in “Financial risk management.” The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of financial assets mentioned above. See Note 13 - “Accounts receivable” for expected credit loss provisions on accounts receivable.
Fair value measurement
As of December 31, 2023 and 2022, the carrying amount was a reasonable approximation of fair value for the following financial assets and liabilities:
Financial assets
•Cash and cash equivalents
•Term deposits
•Accounts receivable
•Other non-current assets—lease deposits and lease receivable
Financial liabilities
•Accounts payable
•Accrued liabilities
•Lease liabilities



Fair value measurement methodology
The Company measures financial instruments at fair value at each balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability or, in the absence of a principal market, in the most advantageous market for the asset or liability.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset or by selling it to another market participant.
The Company uses valuation techniques to measure fair value maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1—Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2—Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
Level 3—Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For assets and liabilities that are recognized in the consolidated financial statements at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
Management determines the policies and procedures for both recurring fair value measurement and for non-recurring measurement with the involvement of experts and external consultants when needed.
The Company holds money market funds which are classified as cash equivalents which are measured as a level 1 valuation. Refer to Note 11 - “Cash and cash equivalents”.
In 2023 and 2022 there were no significant changes in the business or economic circumstances that affect the fair value of the Company’s financial assets and financial liabilities. There were also no transfers between categories.
Financial risk management
Financial risks
Senior management regularly reviews the Company’s cash forecast and related risks. They also perform the risk assessment, define any necessary measures and ensure the monitoring of the internal control system.



The Company’s principal financial liabilities include accounts payable and lease liabilities. The Company’s principal financial assets include cash and cash equivalents, term deposits and short-term investments and accounts receivable.
In the course of its business, the Company is exposed to a number of financial risks including credit and counterparty risk, funding and liquidity risk and market risk (i.e. foreign currency risk and interest rate risk). This note presents the Company’s objectives, policies, and processes for managing these risks.
Credit and counterparty risk management
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities, primarily accounts receivable.
Concentration risk arises when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions.
The Company’s policy with regard to assessing and providing for expected credit losses on accounts receivable is set out in Note 13 - “Accounts receivable.”
Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with the Company’s policy.
Financial transactions are predominantly entered into with investment grade financial institutions and in principle the Company requires a minimum long-term rating of A3/A- for its cash investments and term deposits. The Company may deviate from this requirement from time to time for operational reasons. The highest exposure to a single financial counterparty within cash and cash equivalents and term deposits and short-term investments amounted to $43.7 million and $57.3 million as of December 31, 2023 and 2022, respectively.
Other non-current financial assets include cash deposits for leases.
Funding and liquidity risk management
Funding and liquidity risk is the risk that a company may encounter difficulties in meeting its obligations associated with financial liabilities that are settled by delivering cash or other financial assets. Such risk may result from inadequate market depth or disruption or refinancing problems.
The Company views equity funding as its primary source of liquidity only partly complemented with revenue generated from the sale of the platform, applications, products, and services and some borrowings. The Company has no outstanding borrowing facilities. Short term liquidity is managed based on projected cash flows. As of December 31, 2023 and 2022, the Company’s liquidity consisted of $123.3 million and $161.3 million in cash and cash equivalents, respectively. On the basis of the current operating performance and liquidity position, management believes that the available cash balances will be sufficient for operating activities, working capital, interest, capital expenditures and scheduled debt repayments for the next 12 months.




The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted cash flows (in USD thousands):

Net carrying amountWithin 1 yearBetween 1 and 5 yearsAfter 5 yearsTotal
December 31, 2023
Lease liabilities$18,601 $3,195 $9,729 $6,364 $19,288 
Accounts payable5,391 5,391 5,391 
Accrued expenses17,808 17,808 17,808 
Total contractual liabilities$41,800 $26,394 $9,729 $6,364 $42,487 
December 31, 2022
Lease liabilities$16,743 $2,950 $8,862 $6,421 $18,233 
Accounts payable6,181 6,181 — — 6,181 
Accrued expenses14,505 14,505 — — 14,505 
Total contractual liabilities$37,429 $23,636 $8,862 $6,421 $38,919 
Market risk
Market risk includes currency risk and interest rate risk.
Currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates.
The significant exchange rates that have been applied to these consolidated financial statements are listed below:
December 31,For the twelve months ended December 31,
20232022202320222021
CurrencySpot rateSpot rateAverage rateAverage rateAverage rate
USD/CHF0.84110 0.92447 0.89855 0.95500 0.91437 
USD/EUR0.90580 0.93414 0.92478 0.95146 0.84579 
USD/GBP0.78440 0.82761 0.80428 0.81177 0.72707 
USD/BRL4.85250 5.28600 4.97372 5.16678 5.39288 
The sensitivity of the Company’s income to possible changes in foreign exchange rates is measured at the local entity level as it depends on the functional currency of each entity. As of December 31, 2023,



2022, and 2021 the Company was exposed principally to movements in four cross currency pairs. The sensitivity of the Company’s loss before tax to such changes was as follows (in USD thousands):
December 31,
202320222021
Increase / (decrease) in USD/CHF exchange rate by 10%
3,034 /(3,034)6,614 /(6,614)19,499 /(19,499)
Increase / (decrease) in EUR/CHF exchange rate by 10%
508 /(508)(94)/94648 /(648)
Increase / (decrease) in GBP/CHF exchange rate by 10%
(23)/23(83)/83(18)/18
Increase / (decrease) in USD/EUR exchange rate by 10%
(513)/513503 /(503)726 /(726)
The Company’s exposure to foreign currency changes for all other currencies is not material. The significant increase/decrease between USD/CHF resulted from the Company’s IPO, which occurred in USD. The Company does not use derivative financial instruments to hedge exposures and under no circumstances may enter into derivative instruments for speculative purposes.
The sensitivity of the Company’s reported equity or net assets to possible changes in foreign exchange rates is measured at the consolidated level as it depends on the presentation currency selected for the consolidated financial statements. Such effects are reported not in income but in the currency translation account within other reserves. As of December 31, 2023 and 2022 the sensitivity of the Company’s equity to such changes, measured against the USD, was as follows (in USD thousands):
December 31,
20232022
Increase / (decrease) in USD/CHF exchange rate by 10%
(1,552)/1,55214,198/(14,198)
Increase / (decrease) in USD/EUR exchange rate by 10%
383/(383)(44)/44
Increase / (decrease) in USD/GBP exchange rate by 10%
18/(18)50/(50)
Interest rate risk
The Company’s cash and cash equivalents and term deposits are subject to market risk associated with interest rate fluctuations. Fixed rate securities may have their market value adversely affected due to a rise in interest rates. The Company concluded that fluctuations in the interest rate did not have a material impact on our cash equivalents and term deposit balances.
29. Capital management
The Company considers equity as equivalent to the IFRS Accounting Standards equity on the balance sheet (including share capital, share premium and all other equity reserves attributable to the owners of the Company).
The primary objective of the Company’s capital management is to maximize shareholder value. The Board regularly reviews its shareholders’ return strategy. For the foreseeable future, the Board will maintain a capital structure that supports the Company’s strategic objectives through managing funding and liquidity risks and optimizing shareholder return.
As of December 31, 2023 and 2022, the Company’s cash and cash equivalents amounted to $123.3 million and $161.3 million, respectively.



The Board of Directors believes that the Company has sufficient financial resources to meet all of its obligations for at least the next twelve months. Moreover, the Company is not exposed to liquidity risk through requests for early repayment of loans.
30. Events after the reporting date
The Company has evaluated, for potential recognition and disclosure, events that occurred prior to the date at which the consolidated financial statements were available to be authorized for issuance. There were no material subsequent events.


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_______________________________________________
Compensation Report 2023
of
SOPHiA GENETICS SA
_______________________________________________






















SOPHiA GENETICS SA
Rolle
Report of the statutory auditor
to the General Meeting
on the compensation report 2023


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Report of the statutory auditor
to the General Meeting of SOPHiA GENETICS SA
Rolle

Report on the audit of the compensation report

Opinion

We have audited the compensation report of SOPHiA GENETICS SA (the Company) for the year ended 31 December 2023. The audit was limited to the information pursuant to article 734a-734f CO in the tables 2.c., 3.c. and 4, and the information in sections 2.b. and 4 of the compensation report.

In our opinion, the information pursuant to article 734a-734f CO in the accompanying compensation report complies with Swiss law and the Company’s articles of incorporation.

Basis for opinion

We conducted our audit in accordance with Swiss law and Swiss Standards on Auditing (SA-CH). Our responsibilities under those provisions and standards are further described in the 'Auditor’s responsibilities for the audit of the compensation report' section of our report. We are independent of the Company in accordance with the provisions of Swiss law and the requirements of the Swiss audit profession, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other information

The Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the tables 2.c., 3.c. and 4, and the information in sections 2.b. and 4 in the compensation report, the consolidated financial statements, the financial statements and our auditor’s reports thereon.

Our opinion on the compensation report does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the compensation report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the audited financial information in the compensation report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Board of Directors' responsibilities for the compensation report
The Board of Directors is responsible for the preparation of a compensation report in accordance with the provisions of Swiss law and the Company's articles of incorporation, and for such internal control as the Board of Directors determines is necessary to enable the preparation of a compensation report that is free from material misstatement, whether due to fraud or error. It is also responsible for designing the remuneration system and defining individual remuneration packages.

Auditor’s responsibilities for the audit of the compensation report

Our objectives are to obtain reasonable assurance about whether the information pursuant to article 734a-734f CO is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Swiss law and SA-CH will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this compensation report.

As part of an audit in accordance with Swiss law and SA-CH, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
PricewaterhouseCoopers SA, avenue C.-F. Ramuz 45, case postale, 1001 Lausanne, Switzerland
Téléphone: +41 58 792 81 00, www.pwc.ch
PricewaterhouseCoopers SA is a member of the global PricewaterhouseCoopers network of firms, each of which is a separate and independent legal entity.


•Identify and assess the risks of material misstatement in the compensation report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

•Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.

•Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made.

We communicate with the Board of Directors or its relevant committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Board of Directors or its relevant committee with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

PricewaterhouseCoopers SA




  /s/ Michael Foley  /s/ Pierre-Alain Dévaud
  Licensed audit expert
  Auditor in charge
  Licensed audit expert

Lausanne, 5 March 2024
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PAGE 3 SOPHiA GENETICS SA | Report of the statutory auditor to the General Meeting


Compensation Report 2023
to the Shareholders’ Meeting of SOPHiA GENETICS SA

This compensation report (the “Compensation Report”) of SOPHiA GENETICS SA (the “Company”) has been prepared in accordance with the Swiss Code of Obligations (“SCO”). In addition, the Company additional has prepared this compensation report in accordance with the Articles of Association of the Company and the Swiss Code of Best Practice for Corporate Governance.

The Compensation Report refers to the period from January 1, 2023, through December 31, 2023 and presents the comparative period from January 1, 2022 to December 31, 2022.

Unless otherwise indicated or the context otherwise requires, all references in the Compensation Report to “SOPHiA GENETICS”, the “Company”, “we”, “our”, “ours”, “us” or similar terms refer to the Company and its consolidated subsidiaries.
1


1.Compensation Philosophy, Principles and Governance

Principles of the Compensation of the Board of Directors and the Executive Committee

Pursuant to Swiss law, the aggregate amount of compensation of the board of directors of the Company (the “Board of Directors”) and the persons whom the Board of Directors has entrusted with the management of the Company (the “Executive Committee”) shall be submitted to the annual general meeting of shareholders of the Company (the “AGM”) for a binding vote.

In the Compensation Report, the aggregate amounts of compensation, loans, and other forms of indebtedness to the Board of Directors and the Executive Committee respectively are disclosed, as well as the specific amount for each member of the Board of Directors and for the highest-paid member of the Executive Committee, specifying the name and function of each of these persons.

As a Swiss company listed on Nasdaq, we are prohibited from granting certain forms of compensation to members of the Board of Directors and the Executive Committee, such as:

•severance payments (compensation due until the termination of a contractual relationship does not qualify as severance payment);

•advance compensation (remuneration to compensate for a verifiable financial disadvantage linked to a change of job does not qualify as advance compensation);

•incentive fees for the acquisition or transfer of entities, or parts thereof, by the Company or by entities, directly or indirectly, controlled and as such consolidated by the Company (“Subsidiaries”);

•loans, other forms of indebtedness, pension benefits not based on occupational pension schemes and performance-based compensation not provided for in the articles of association of the Company (the “Articles”); and

•equity-based compensation not allowed under the Articles.

Compensation to members of the Board of Directors and the Executive Committee for activities in Subsidiaries is prohibited, if (i) the compensation would be prohibited if it were paid directly by the Company, (ii) the Articles do not provide for it, or (iii) the compensation has not been approved by the AGM.

Each year, at the AGM, shareholders will vote on the proposals of the Board of Directors with respect to:

•the maximum aggregate amount of compensation of the Board of Directors for the term of office until the next AGM;

•the maximum aggregate amount of fixed compensation of the Executive Committee for the following financial year; and

•the maximum aggregate amount of variable compensation of the Executive Committee for the current financial year.

The Board of Directors may submit for approval to the AGM deviating, additional or conditional proposals relating to the maximum aggregate amount or maximum partial amounts for the same or different periods or specific compensation components.

If the AGM does not approve a proposal of the Board of Directors, the Board of Directors shall determine, considering all relevant factors, the respective (maximum) aggregate amount or



(maximum) partial amounts, and submit the amount(s) so determined for approval to a new AGM or extraordinary general meeting of shareholders of the Company (the “EGM”) for a binding vote.

The Company or Subsidiaries may pay or grant compensation prior to approval by the AGM, subject to subsequent approval.

Members of the Board of Directors and the Executive Committee may be paid fixed compensation and variable compensation, depending on the achievement of specific performance targets. Such performance targets may include individual targets, targets in relation to the achievement of results related to the Company or parts thereof, and targets in relation to the market, other companies or comparable benchmarks, taking into account the position and level of responsibility of the recipient. The Board of Directors or, to the extent such authority has been delegated to it, the compensation committee of the Board of Directors (the “Compensation Committee”) shall determine the relative weight of the performance targets and the respective target values.

Compensation may be paid in the form of cash, shares, options, or other share-based instruments or units, or in the form of other types of benefits. The Board of Directors or, to the extent such authority has been delegated to it, the Compensation Committee, shall determine grant, vesting, exercise, and forfeiture or recoupment conditions.

Method of Determining Compensation

Role and Powers of the Compensation Committee

The Compensation Committee consists of at least two members, who will be (re-)elected at the AGM for a period until the following AGM. The Board of Directors appoints the chair of the Compensation Committee and fills any vacancies until the following AGM.

The Compensation Committee supports our Board of Directors in establishing and reviewing the compensation and benefits strategy and guidelines as well as in preparing the proposals to the AGM regarding the compensation of the members of the Board of Directors and the Executive Committee. The Compensation Committee may submit proposals to the Board of Directors on other compensation-related matters.

The Compensation Committee has the responsibility to, among other things:

•regularly review and make recommendations to the Board of Directors regarding our compensation and benefits strategy and guidelines;

•prepare the proposals to the AGM regarding the compensation of the members of the Board of Directors and the Executive Committee;

•regularly review and make recommendations to the Board of Directors regarding (i) the compensation of the members of the Board of Directors based on the recommendation of external compensation consultants and (ii) the fixed and variable compensation, including allocations under incentive plans and key performance indicators of the members of the Executive Committee;

•review and approve the recommendation of the Chief Executive Officer regarding the fixed and variable compensation, including allocations under incentive plans and key performance indicators, of the members of the management team other than members of the Executive Committee;

•review and make recommendations to the Board of Directors regarding our compensation and benefits plans (cash or equity-based plans) and, where appropriate or required, make recommendations to adopt, amend and terminate such plans;




•to the extent not delegated by the Compensation Committee to a different body or a third party, administer our compensation and benefits plans (other than equity-based plans); and

•review and assess risks arising from our employee compensation policies and practices and whether any such risks are reasonably likely to have a material adverse effect on the Company, its management, and (other) employees.

Compensation of the Board of Directors

As per the Articles, the compensation of the non-executive members of the Board of Directors may consist of fixed and variable compensation elements. Total compensation shall take into account the position and level of responsibility of the relevant member of the Board of Directors. Additionally, the Company pays the employer’s portion of social security contributions due on these amounts, as applicable.

As per the Articles, compensation may be paid in the form of cash, shares, options or other share-based instruments or units, or in the form of other types of benefits. The Board of Directors or, to the extent delegated to it, the Compensation Committee, shall determine grant, vesting, exercise, restriction, and forfeiture conditions and periods. In particular, it may provide for continuation, acceleration, or removal of vesting, exercise, restriction and forfeiture conditions and periods, for payment or grant of compensation based upon assumed target achievement, or for forfeiture, in each case in the event of pre-determined events such as a change of control or termination of an employment or mandate agreement. The Company may procure the required shares or other securities through purchases in the market, from treasury shares, or by using conditional or authorized share capital. Compensation may be paid by the Company or its Subsidiaries.

Compensation of the Members of the Executive Committee

As per the Articles, the compensation of the members of the Executive Committee may consist of fixed and variable compensation elements. Fixed compensation comprises the base salary and may consist of other compensation elements. Variable compensation may take into account the achievement of specific performance targets. Total compensation shall take into account the position and level of responsibility of the recipient.

As per the Articles, compensation may be paid in the form of cash, shares, options, or other share-based instruments or units, or in the form of other types of benefits. The Board of Directors or, to the extent delegated to it, the Compensation Committee, shall determine grant, vesting, exercise, restriction, and forfeiture conditions and periods. In particular, it may provide for continuation, acceleration, or removal of vesting, exercise, restriction and forfeiture conditions and periods, for payment or grant of compensation based upon assumed target achievement, or for forfeiture, in each case in the event of pre-determined events such as a change of control or termination of an employment or mandate agreement. The Company may procure the required shares or other securities through purchases in the market, from treasury shares, or by using conditional or authorized share capital. Compensation may be paid by the Company or its Subsidiaries.

Elements of Compensation for 2023

We believe that our overall compensation packages for members of the Executive Committee are competitive, given the importance of attracting, motivating, and retaining persons with the necessary skills and character. For 2023, the overall compensation consisted of base salary, bonus and grants under the Company’s equity incentive plan.

Base Salary

Per the results of external benchmarking, we believe that our base salaries are in line with market practice. The base salary levels are based on the scope of the relevant position, market conditions, and the relevant individual’s profile in terms of experience and skills. Base salaries are reviewed



annually by the Compensation Committee, taking into account individual performance and the results of the external benchmarking.

Bonus

We have established an annual performance bonus program under which bonuses may be earned by members of our management team and Executive Committee based on achievement of Company performance objectives approved by the Compensation Committee each year. The bonus program is intended to strengthen the connection between individual compensation and Company success, reinforce our pay-for-performance philosophy by awarding higher bonuses to higher performing executives and help ensure that our compensation is competitive. Under the terms of the performance bonus program, the Compensation Committee will review and determine the final bonus pay-out based on the achieved objectives and make final recommendation for approval to the Board of Directors.

Each member of the Executive Committee is eligible to receive a bonus under the program calculated by multiplying its base salary by a target percentage value assigned to it or to its position by the Compensation Committee. The Compensation Committee determines if the bonus is to be paid at target, under target or above target.

Equity Incentive Plan

In connection with the IPO, in June 2021, we adopted the SOPHiA GENETICS SA 2021 Equity Incentive Plan (the “2021 Equity Incentive Plan” or the “Plan”). The purpose of the Plan is to motivate, reward, and retain our employees, non-employee directors, consultants and advisors to perform at the highest level and to further the best interests of the Company and our shareholders. The 2021 Equity Incentive Plan is the sole means for the Company to grant new equity awards.

Plan Administration. The Plan is administered by the Compensation Committee, subject to the Board of Directors’ discretion to administer or designate one or more members of the Board of Directors as a subcommittee who may act for the Compensation Committee. For the fiscal year ended December 31, 2023, the Compensation Committee delegated the plan administration to the Remuneration Committee of the Executive Committee, which consists of the Chief Executive Officer, Chief Financial Officer, and the Chief People Officer.

Eligible Participants. The administrator may offer equity awards under the 2021 Equity Incentive Plan to (1) any employees of the Company or any of its Subsidiaries; (2) any non-employee directors serving on our Board of Directors; (3) any consultants or other advisors to us or any Subsidiaries; and (4) any holders of equity compensation awards granted by an entity acquired by the Company (or whose business is acquired by the Company) or with which the Company combines (whether by way of amalgamation, merger, sale and purchase of shares or other securities or otherwise) and such persons are eligible to be selected to receive grants of replacement awards under the 2021 Equity Incentive Plan. Under certain circumstances, new employees, including members of the Executive Committee and members of the Management Team, may receive replacement awards to compensate them for amounts forgone in connection with their change of employment.Under certain circumstances, new employees, including members of the Executive Committee and members of the Management Team, may receive replacement awards to compensate them for amounts forgone in connection with their change of employment.

Awards. The maximum number of common shares in respect of which awards may be granted under the 2021 Equity Incentive Plan was 14,800,000 ordinary shares during the reporting period. Equity incentive awards under the Plan may be granted in the form of options, share appreciation rights, restricted shares, restricted share units (“RSUs”), performance awards or other share-based awards, but not incentive stock options for purposes of U.S. tax laws. Options and share appreciation rights, if granted, have an exercise price determined by the administrator, which will not be less than the fair market value of the underlying common shares on the date of grant, which is generally the closing share price of the Company’s common shares traded on Nasdaq on that day.




Vesting. The vesting conditions for grants under the equity incentive awards pursuant the Plan are set forth in the applicable award documentation. Generally, 25% of the option awards vest on the first anniversary of the date of grant, and thereafter evenly on a monthly or quarterly basis over the subsequent three years. RSUs vest 25% on the first anniversary of the date of grant, and thereafter evenly on a monthly or quarterly basis over the subsequent three years or after the second anniversary of the date of grant. RSUs awarded to members of the Board of Directors vest in a single installment on the date of the Company’s next AGM following the grant date.

Termination of Service and Change in Control

In the event of a participant’s termination of service, whether voluntary or involuntary and exclusive of a Change in Control , the Compensation Committee may, at its discretion taking into account mandatory law, determine the extent to which an equity incentive award may be exercised, settled, vested, paid or forfeited. In the event of a Change in Control each award that is outstanding as of immediately prior to such Change in Control shall:

(i) to the extent not then vested, accelerate and become fully vested (with any Award that is a Performance Award assumed to have achieved the applicable performance criteria at the greater of target and maximum level of performance), and

(ii) be cancelled and converted into the right to receive a payment in cash with a value equal to (a) the value of such Award based on the per share value of consideration received or to be received by other shareholders of the Company in such Change in Control, less, (b) if such Award is an Option or a Stock Appreciate Right ("SAR"), the applicable exercise price; provided, that, if, as of the date of the Change in Control, the Committee determines that no amount would have been realized upon the settlement or exercise of the Award pursuant to the Plan, then the Award may be cancelled by the Company without payment of consideration.

Termination and Amendment. Unless terminated earlier, the 2021 Equity Incentive Plan will continue to be in force for a term of ten years. Our Board of Directors has the authority to amend, alter, suspend, discontinue or terminate the Plan or any portion thereof at any time, subject to shareholders’ approval with respect to certain amendments. However, no such action may impair the rights of the participants unless if agreed by the participant.

Pension Plans

We operate defined benefit and defined contribution pension plans, in accordance with the local conditions and practices in the countries in which we operate.

The defined benefit plans are generally funded through payments to insurance companies or trustee-administered funds, based on periodic actuarial calculations. Typically, defined benefit plans define an amount of pension benefit that an employee will receive upon retirement, usually dependent on one or more factors such as age, years of service, and compensation. However, as is the case with many Swiss pension plans, although the amount of ultimate pension benefit is not defined, these plans entail obligations of the employer to pay further contributions to fund an eventual deficit.

For defined contribution plans, such as publicly or privately administered pension insurance plans, the Company pays contributions on a mandatory, contractual or voluntary basis. Once the contributions have been paid, the Company has no further payment obligations.

Social Charges

The Company pays social security contributions as required by applicable law. The Company also pays certain non-mandatory benefits under local social security plans.




Employment Agreements

We have entered into employment agreements with all the members of our Executive Committee. Each of these agreements provides for a base salary and annual bonus opportunity, equity eligibility participation, as well as participation in certain pension and welfare benefit plans. These agreements generally require advance notice of termination, from six to twelve months and in some cases provide for gardening leave (paid leave). Some members of our Executive Committee have agreed to covenants not to compete against us or solicit our employees or customers during employment, for a period of up to one year following termination. We may be required to pay some members of our Executive Committee compensation for their covenant not to compete with us following termination for some period.

Mandates outside of SOPHiA GENETICS SA

According to article 30 of the Articles of Association (https://www.sec.gov/Archives/edgar/data/1840706/000095010323009427/dp195902_ex9901.htm), limitations apply to mandates outside the SOPHiA GENETICS SA Board members and Executive Committee members. The following external mandates are subject to these limitations and are therefore presented in the Compensation Report as of December 31, 2023.

Members of the Board
Troy CoxLila Tretikov
ZymeworksMicrosoft Corporation
•Member of the Board
•Corporate Vice President & Deputy Chief Technology Office
•Member of the Audit Committee
LetsGetCheckedVolvo Cars
•Member of the Board
•Member of the Board
•Member of the Audit Committee
Standard Bio Tools
•Member of the Board
Xylem
•Member of the Board
BioSplice
•Member of the Finance Committee
•Member of the Board
•Member of the Nomination and Governance Committee
Tomer BerkovitzOnfido LTD
aMoon Fund
•Chair of the Nomination and Governance Committee
•Managing Partner
•Member of the Board
Vincent Ossipow
Omega Funds
Kathy Hibbs
•Partner
23andMe
•Chief Administrative Officer
Omega Alpha SPAC
•Chief Scientific Officer
Standard Bio Tools
•Member of the Board
Aerium Inc.
•Member of the Board
Jean-Michel Cosséry
Malin Corporation PlcBioInvent International AB
•Member of the Board
•Member of the Board



Scancell Holdings PlcFoRx Therapuetics SA
•Chairman of the Board
•Member of the Board
Eracal Therapeutics
•Member of the Board

Members of the Executive Committee
Jurgi Camblong
Advisory Council on Digital Transformation to the Swiss Government
•Member of the Council
Swiss Biotech Association
•Member of the Board



2. Compensation of the Board of Directors

a.Board Composition

Our Board of Directors is composed of eight members as of December 31, 2023. Each Director is elected for a one-year term. The current Directors were appointed at our AGM on June 26, 2023 to serve until our 2024 AGM.

The Company is a foreign private issuer listed on Nasdaq and subject to the rules of the SEC. We rely on Swiss home country governance requirements and certain exemptions thereunder rather than on the Nasdaq corporate governance requirements. The majority of our Directors are independent directors. There are no family relationships among any members of our Board of Directors or the Executive Committee.

Board of Directors

NameRole(s)Year appointed
Jurgi CamblongDirector & Chief Executive Officer2011
Troy CoxChairman2020
Kathy HibbsDirector2021
Didier HirschDirector2020
Vincent OssipowDirector2014
Milton Silva-Craig(1)
Director2019
Tomer BerkovitzDirector2021
Jean-Michel Cosséry(2)
Director2022
Lila Tretikov(3)
Director2023
(1)MIlton Silva-Craig retired from the Board of Directors on June 26, 2023
(2)Jean-Michel Cosséry was elected to the Board of Directors on June 15, 2022
(3)Lila Tretikov was elected to the Board of Directors on June 26, 2023

Board Committees

The board committee responsibilities in the table are as of December 31, 2023:
NameAudit CommitteeCompensation CommitteeNomination and Corporate Governance Committee
Troy Cox*Chair
Kathy HibbsChairMember
Didier HirschChairMember
Tomer BerkovitzMember
Vincent OssipowMember
Jean-Michel CosséryMember
Lila TretikovMember
*Chairman of the Board of Directors




The board committee responsibilities in the table are as of December 31, 2022:

NameAudit CommitteeCompensation CommitteeNomination and Corporate Governance Committee
Troy Cox*Member
Kathy HibbsMemberChair
Didier HirschChairMember
Milton Silva-CraigMemberChair
Tomer BerkovitzMember
Vincent OssipowMember
Jean-Michel CosséryMember
*Chairman of the Board of Directors

b.Board Compensation Structure

Members of the Board of Directors receive a fixed fee, which is comprised of an annual member fee of $40,000 and an additional fee for Chair responsibilities. The total amount of compensation for each chairperson and non-chair member is set forth below. Such fixed fees have been established in line with market practice and represent the fees paid for being a member of the Board and the additional fees paid to the chair of the Board or a Board Committee. The table below presents the fixed fee cash compensation for each of the various positions across the Board and the Board Committees for both the periods from January 1, 2023 through December 31, 2023 and January 1, 2022 through December 31, 2022:

(in USD thousands)Cash Compensation
Chairperson - Board of Directors80
Chairperson - Audit Committee60
Chairperson - Compensation Committee53
Chairperson - Nomination and Corporate Governance Committee53
Member of the Board of Directors40




c.Total Board Compensation Amounts

In the period from January 1, 2023 through December 31, 2023, the compensation of the members of the Board of Directors was as follows (in CHF, converted from other currencies as applicable at the average prevailing exchange rate over the reporting period):

NameGross Cash Compensation
Social Contribution (1) 
FMV of Equity Instruments Granted (2)
Total Contribution
Troy Cox77,572—168,423245,995
Jurgi Camblong(3)
————
Didier Hirsch53,871—168,423222,294
Kathy Hibbs47,586—168,423216,009
Vincent Ossipow35,9142,299168,423206,635
Milton Silva-Craig24,166——24,166
Tomer Berkovitz(4)
————
Lila Tretikov17,675—261,255278,930
Jean-Michel Cosséry35,914—261,255297,169
Total292,6992,2991,196,2021,491,199
(1)Includes social security contributions as required by applicable law, as well as certain non-mandatory benefits under local social security plan.
(2)Represents the fair value of stock options on the date of grant. Stock options are valued using the Black-Scholes option pricing model. FMV excludes Swiss social security contributions, since such contributions are only due if and when the equity instruments are exercised.
(3)As members of the Executive Committee, Dr. Camblong receives no compensation for service on the Board of Directors. Compensation for Dr. Camblong is included in Section 3.c below.
(4)Tomer Berkovitz does not receive compensation for service on the Board of Directors due to policy requirements of his employer aMoon (investor in the Company).

In the period from January 1, 2022 through December 31, 2022, the compensation of the members of the Board of Directors was as follows (in CHF, converted from other currencies as applicable at the average prevailing exchange rate over the reporting period):

NameGross Cash Compensation
Social Contribution (1)
FMV of Equity Instruments Granted (2)
Total Contribution
Troy Cox73,91618,479176,592268,987
Jurgi Camblong(3)
————
Didier Hirsch55,43713,859176,592245,888
Kathy Hibbs48,96912,242176,592237,803
Vincent Ossipow36,9582,365176,592215,915
Milton Silva-Craig48,96912,242176,592237,803
Jean-Michel Cosséry20,1035,026176,592201,721
Tomer Berkovitz(4)
————
Total284,35264,2141,059,5521,408,118
(1)Includes social security contributions as required by applicable law, as well as certain non-mandatory benefits under local social security plan.
(2)Represents the fair value of stock options on the date of grant. Stock options are valued using the Black-Scholes option pricing model. FMV excludes Swiss social security contributions since such contributions are only due if and when the equity instruments are exercised.
(3)As members of the Executive Committee, Dr. Camblong receive no compensation for service on the Board of Directors. Compensation for Dr. Camblong is included in Section 3.c below.
(4)Tomer Berkovitz does not receive compensation for service on the Board of Directors due to policy requirements of his employer aMoon (investor in the Company).




d.Loans to members of the Board of Directors, payments to former members of the Board of Directors and payments to Related Parties of Members of the Board of Directors

No loans were extended to members of the Board of Directors or outstanding during the period from January 1, 2023 through December 31, 2023 and from January 1, 2022 through December 31, 2022. No payments to former members of the Board of Directors in connection with their former role or that are not at arm’s length were made during and with respect to such period, and no severance payments to any member or former member of the Board of Directors were made during and with respect to such period. No payments to related parties of members of the Board of Directors were made during such period.



3. Compensation of the Members of the Executive Committee

a.Executive Committee Composition
As of December 31, 2023 and December 31, 2022 the Executive Committee was composed of the following individuals:

NameFunctionAppointment
Jurgi CamblongFounder & Chief Executive Officer2011
Ross Muken
Senior Vice President – Chief Financial Officer and Chief Operating Officer2021
Daan van WellSenior Vice President – Chief Legal and Compliance Officer2019
Manuela da Silva Valente
Senior Vice President – Chief People Officer2021
Zhenyu Xu
Senior Vice President – Chief Scientific Officer2021
Philippe Menu
Senior Vice President – Chief Medical Officer and Chief Product Officer2021

b.Executive Committee Compensation Structure

Members of the Executive Committee receive compensation consisting of a base salary, bonus, social benefits and grants under the 2021 Equity Incentive Plan as well as certain other benefits.

c.Total Executive Committee Compensation Amounts

From January 1, 2023 through December 31, 2023, the fixed and variable compensation of the members of the Executive Committee was as follows (in CHF, converted from other currencies as applicable at the average prevailing exchange rate over the reporting period):
 
NameCash Compensation
Other Compensation (1)
Pension (Employer)
Employer’s Social Contribution (2)
Cash BonusTotal
Equity FMV Excluding Social Contributions (3) 
Jurgi Camblong462,50024,00065,939141,192352,4081,046,0396,063,783
Total Executive Committee Compensation (4)
1,931,897115,405204,715474,952979,9043,706,87311,305,354
(1)Includes school fees, medical, dental and vision benefits, life and disability insurance, employer 401 (k) contributions, private use portion of company car allowance, representation fees and payment for unused vacation.
(2)Includes social security contributions as required by applicable law, as well as certain non-mandatory benefits under local social security plans.
(3)Represents the fair value of equity awards on the date of grant. Stock options are valued using the Black-Scholes option pricing model. RSUs are valued based on the closing share price of the Company’s common shares traded on Nasdaq on the date of the award. FMV excludes Swiss social security contributions, since such contributions are only due if and when the equity instruments are exercised.
(4)Inclusive of Dr.Jurgi Camblong and relate to a total of six Executive Committee members during the reporting period.




From January 1, 2022 through December 31, 2022, the fixed and variable compensation of the members of the Executive Committee was as follows (in CHF, converted from other currencies as applicable at the average prevailing exchange rate over the reporting period):

NameCash Compensation
Other Compensation (1)
Pension (Employer)
Employer’s Social Contribution (2)
Cash BonusTotal
Equity FMV Excluding Social Contributions (3) 
Jurgi Camblong469,00024,00060,63871,862375,200976,7002,104,368
Total Executive Committee Compensation (4)
1,892,064125,579186,117238,333980,2323,341,3253,709,394
(1)Includes school fees, medical, dental and vision benefits, life and disability insurance, employer 401 (k) contributions, private use portion of company car allowance, representation fees and payment for unused vacation.
(2)Includes social security contributions as required by applicable law, as well as certain non-mandatory benefits under local social security plans.
(3)Represents the fair value of equity awards on the date of grant. Stock options are valued using the Black-Scholes option pricing model. RSUs are valued based on the closing share price of the Company’s common shares traded on Nasdaq on the date of the award. FMV excludes Swiss social security contributions, since such contributions are only due if and when the equity instruments are exercised
(4)Inclusive of Dr.Jurgi Camblong, as well as members of the Executive Committee who departed the Company during the reporting period. These figures relate to a total of seven Executive Committee members during the reporting period.

d.Loans, Severance or other Compensation Paid to Members or Former Members of the Executive Committee

No loans were extended to members of the Executive Committee or outstanding during the period from January 1, 2023 through December 31, 2023 and January 1, 2022 through December 31, 2022. No payments to former members of the Executive Committee in connection with their former role or that are not at arm's length were made during and with respect to such period, and no severance payments to members of the Executive Committee or former members of the Executive Committee were made during and with respect to such period. No payments to related parties of members of the Executive Committee were made during such period.

4. Equity and Equity-Linked Instruments Held by Members of the Board of Directors and the Executive Committee

The members of the Board of Directors and of the Executive Committee and their related parties, if any, held the following equity and equity-linked instruments as of December 31, 2023:

Equity and Equity-Linked Instruments Held by Members of the Board of Directors (1)

NameFunctionSharesOptions - VestedOptions - UnvestedRSUs - VestedRSUs - Unvested
Troy CoxChairman185,942119,99354,24763,41148,309
Didier HirschDirector74,522105,00035,00063,41148,309
Kathy HibbsDirector37,41470,00070,00063,41148,309
Vincent OssipowDirector395,50225,00050,00063,41148,309
Lila TretikovDirector——59,880—48,309
Jean-Michel CosséryDirector63,411—59,88063,41148,309
Tomer BerkovitzDirector—————
(1)Excluding Dr. Jurgi Camblong, CEO, whose holdings are listed in the Executive Committee table.




The members of the Board of Directors and of the Executive Committee and their related parties, if any, held the following equity and equity-linked instruments as of December 31, 2022:

NameFunctionSharesOptions - VestedOptions - UnvestedRSUs - VestedRSUs - Unvested
Troy CoxChairman122,53159,996114,24411,11163,411
Didier HirschDirector11,11170,00070,00011,11163,411
Kathy HibbsDirector11,11135,000105,00011,11163,411
Vincent OssipowDirector317,0915,00085,00011,11163,411
Milton Silva-CraigDirector87,64935,00035,00011,11163,411
Jean-Michel CosséryDirector————63,411
Tomer BerkovitzDirector—————
(1)Excluding Dr. Jurgi Camblong, CEO, whose holdings are listed in the Executive Committee table.

Equity and Equity-Linked Instruments Held by Members of the Executive Committee

The members of the Executive Committee held the following equity and equity-linked instruments as of December 31, 2023:

NameFunctionSharesOptions - VestedOptions - UnvestedRSUs - VestedRSUs - Unvested
Jurgi CamblongFounder & Chief Executive Officer2,448,405786,2811,377,477209,8881,035,811
Ross MukenSenior Vice President – Chief Financial Officer and Chief Operating Officer58,569405,495710,58653,361299,662
Daan van WellSenior Vice President – Chief Legal and Compliance Officer90,04677,297215,80832,016145,899
Zhenyu XuSenior Vice President – Chief Scientific Officer412,665145,597235,74928,458164,663
Philippe MenuSenior Vice President – Chief Medical Officer and Chief Product Officer40,16591,597251,74928,458164,663
Manuela da Silva ValenteSenior Vice President – Chief People Officer38,91158,498121,60917,78787,781

The members of the Executive Committee held the following equity and equity-linked instruments as of December 31, 2022:

NameFunctionSharesOptions - VestedOptions - UnvestedRSUs - VestedRSUs - Unvested
Jurgi CamblongFounder & Chief Executive Officer2,238,517572,130494,97429,021531,413
Ross MukenSenior Vice President – Chief Financial Officer5,642210,117571,3927,378135,105
Daan van Well
Senior Vice President – Chief Legal
47,41943,070114,3364,42781,063
Manuela da Silva ValenteSenior Vice President – Chief People Officer22,45436,70650,4642,45945,035
Zhenyu XuSenior Vice President – Chief Scientific Officer238,540109,22986,2433,93572,056
Philippe MenuSenior Vice President – Chief Medical Officer13,88049,729107,7433,93572,056

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Statutory Financial Statements of SOPHiA GENETICS SA for the year ended
December 31, 2023



SOPHiA GENETICS SA
Rolle
Report of the statutory auditor
to the General Meeting
on the financial statements 2023
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Report of the statutory auditor
to the General Meeting of SOPHiA GENETICS SA
Rolle
Report on the audit of the financial statements
Opinion
We have audited the financial statements of SOPHiA GENETICS SA (the Company), which comprise the balance sheet as at 31 December 2023, and the statement of loss for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements comply with Swiss law and the Company’s articles of incorporation.
Basis for opinion
We conducted our audit in accordance with Swiss law and Swiss Standards on Auditing (SA-CH). Our responsibilities under those provisions and standards are further described in the 'Auditor’s responsibilities for the audit of the financial statements' section of our report. We are independent of the Company in accordance with the provisions of Swiss law and the requirements of the Swiss audit profession, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Our audit approach
Overview
Overall materiality: CHF 2,873 thousand
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We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the financial statements as a whole, taking into account the structure of the Company, the accounting processes and controls, and the industry in which the Company operates.
As key audit matter the following area of focus has been identified:
Revenue from SOPHiA DDM platform
Materiality
The scope of our audit was influenced by our application of materiality. Our audit opinion aims to provide reasonable assurance that the financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall materiality for the financial statements as a whole as set out in the table below. These, together with qualitative
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PricewaterhouseCoopers SA, avenue C.-F. Ramuz 45, case postale, 1001 Lausanne, Switzerland
Téléphone: +41 58 792 81 00, www.pwc.ch
PricewaterhouseCoopers SA is a member of the global PricewaterhouseCoopers network of firms, each of which is a separate and independent legal entity.


considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and in aggregate, on the financial statements as a whole.
Overall materiality
CHF 2,873 thousand
Benchmark applied
Loss before tax
Rationale for the materiality benchmark applied
We chose loss before tax as the benchmark because, in our view, it is the benchmark against which the performance of the Group is most commonly measured, and it is a generally accepted benchmark.
We agreed with the Audit Committee that we would report to them misstatements above CHF 287 thousand identified during our audit as well as any misstatements below that amount which, in our view, warranted reporting for qualitative reasons.
Audit scope
We designed our audit by determining materiality and assessing the risks of material misstatement in the financial statements. In particular, we considered where subjective judgements were made; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Revenue from SOPHiA DDM platform
Key audit matter
How our audit addressed the key audit matter
The entity has decided to apply the same accounting policy as the one used for the consolidated financial statements.
During the year ended December 31, 2023, the entity’s revenue from the SOPHiA DDM platform was CHF 32,001 thousand.

As discussed in note A.2 to the financial statements, the entity has determined that the stand-alone selling price for the analyses, in both a dry lab arrangement and bundle arrangement, is not discernible from past transactions. As a result, the residual approach is used to determine the stand-alone selling price of the analyses for both arrangements. Two different margins have been determined by the entity, one for enrichment kits which are produced and one for enrichment kits which are purchased.

In our view, this is a key audit matter, as the determination of the stand-alone selling price is based to a large extent on estimates made by the entity.

We obtained and read the accounting memo and discussed with management the determination of the accounting treatment of the residual approach. We critically challenged the estimates used in the determination of the enrichment kit margin for both produced and purchased enrichment kits by comparing the peer group information included in management’s memo to publicly available information.
We assessed the appropriateness of the entity’s conclusions in the application of the accounting policy in accordance with the Swiss Code of Obligations.

We tested the application of the estimates throughout our revenue testing and as part of the enrichment kit cost testing. We noted no deviations from the two estimates management outlined in their accounting memo.

In addition, we performed sensitivity analysis over the entity’s estimate of the margin applied to enrichment kits to understand the impact on the timing of the revenue recognized.

Based on our procedures we consider management’s approach regarding the determination of the accounting treatment, the approach used to allocate the transaction price to the analyses and estimates used for the determination of the enrichment kit margin to be reasonable.

3 SOPHiA GENETICS SA | Report of the statutory auditor to the General Meeting



Other information
The Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements, the consolidated financial statements, the compensation report and our auditor’s reports thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Board of Directors' responsibilities for the financial statements
The Board of Directors is responsible for the preparation of financial statements in accordance with the provisions of Swiss law and the Company’s articles of incorporation, and for such internal control as the Board of Directors determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Swiss law and SA-CH will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Swiss law and SA-CH, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

•Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

•Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.

•Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made.

•Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

We communicate with the Board of Directors or its relevant committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

4 SOPHiA GENETICS SA | Report of the statutory auditor to the General Meeting


We also provide the Board of Directors or its relevant committee with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them regarding all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with the Board of Directors or its relevant committee, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on other legal and regulatory requirements
In accordance with article 728a para. 1 item 3 CO and PS-CH 890, we confirm the existence of an internal control system that has been designed, pursuant to the instructions of the Board of Directors, for the preparation of the financial statements.

We further confirm that the proposed carry forward of the accumulated losses complies with Swiss law and the Company’s articles of incorporation. We recommend that the financial statements submitted to you be approved.

PricewaterhouseCoopers SA





/s/ Michael Foley/s/ Pierre-Alain Dévaud
Licensed audit expert
Auditor in charge
Licensed audit expert

Lausanne, 5 March 2024
5 SOPHiA GENETICS SA | Report of the statutory auditor to the General Meeting

SOPHiA GENETICS SA, Rolle
Balance Sheet as of December 31,Note20232022
CHFCHF
Current assets
Cash and cash equivalents45,242,171 63,773,892 
Short-term deposits— 16,000,514 
Trade accounts receivable17,596,433 5,424,175 
Other short term receivables2,045,095 1,614,170 
        due from third parties1,280,943 1,556,488 
        due from group companies764,152 57,682 
Short term loans to group companies 348,929,564 81,750,155 
Inventory25,451,623 4,758,296 
Prepaid expenses and accrued income4,323,640 3,527,357 
Other current assets1,900 366,558 
Total current assets113,590,426 177,215,117 
Non-current assets
Financial assets 939,355 675,045 
Investments in subsidiaries419,167,068 19,167,068 
Property and equipment5,676,349 6,064,516 
Intangible assets15,177,146 10,825,188 
Right-of-use assets710,579,136 11,644,061 
Other non-current assets215,104 215,104 
Total non-current assets51,754,158 48,590,982 
Total Assets165,344,584 225,806,099 
Current liabilities
Trade accounts payable due to third parties1,392,368 1,716,385 
Other short term liabilities 3,085,362 7,987,670 
        due to third parties51,677,601 2,293,303 
        due to group companies1,407,761 5,694,367 
Lease liabilities, current portion71,571,447 1,574,825 
Accrued expenses8,204,981 8,040,090 
Deferred income3,941,118 688,845 
Total current liabilities18,195,276 20,007,815 
Non-current liabilities
Lease liabilities, net of current portion711,305,918 12,031,446 
Long term accrued expenses146,039 146,039 
Total non-current liabilities11,451,957 12,177,485 
Total liabilities29,647,233 32,185,300 
Shareholders' equity
Share capital63,844,908 3,319,908 
Legal reserves443,774,328 443,617,347 
        - Reserve from capital contributions6442,569,525 442,412,544 
        - Other capital reserves61,204,803 1,204,803 
Treasury shares6(583,380)(108,347)
Accumulated deficit(253,208,109)(181,995,748)
Loss for the year(58,130,396)(71,212,361)
Total shareholders' equity135,697,351 193,620,799 
Total Liabilities and Shareholders' Equity165,344,584 225,806,099 
1

SOPHiA GENETICS SA, Rolle

Statement of Loss for the financial year ended December 31,
Note20232022
CHFCHF
Revenue from sales of goods and services832,884,823 31,857,790 
Changes in inventory of finished goods and work-in-progress(397,023)52,304 
Raw materials and supplies(12,379,120)(12,711,706)
Personnel expenses(39,886,702)(39,318,308)
Marketing and travel expenses(2,767,263)(3,869,946)
Professional fees(9,302,638)(11,000,312)
Depreciation of fixed assets(1,428,096)(972,832)
Amortization of intangible assets(627,233)(597,394)
Depreciation of right-of-use assets(2,454,246)(1,753,920)
Provision on loan to subsidiaries— 1,160,984 
IT Costs(5,520,881)(5,283,354)
Other operating expenses9(20,852,359)(34,862,581)
Capitalized development costs5,593,182 4,169,469 
Operating Loss(57,137,556)(73,129,806)
Financial income4,125,441 1,505,568 
Financial expenses(456,467)(691,508)
Foreign exchange (loss) / gain(6,649,879)1,113,819 
Dividend income from Investments2,017,769 — 
Other non-operating income 107,296 99,070 
Other non-operating expenses— (109,504)
Loss before taxes(57,993,396)(71,212,361)
Taxes(137,000)— 
Loss for the year(58,130,396)(71,212,361)
2


Notes to the statutory financial statements for the year ended December 31, 2023

A.Accounting principles applied in the preparation of the financial statements

A.1 General information
SOPHiA GENETICS SA (NASDAQ: SOPH) (“the Company”) is a cloud-native software company in the healthcare space, incorporated on March 18, 2011, and headquartered in Rolle, Switzerland. The Company is dedicated to establishing the practice of data-driven medicine as the standard of care in health care and for life sciences research. The Company has built a cloud-native software platform capable of analyzing data and generating insights from complex multimodal datasets and different diagnostic modalities. This platform, commercialized as “SOPHiA DDMTM,” standardizes, computes and analyzes digital health data and is used in decentralized locations to break down data silos.

On June 26, 2023, during the Company’s Annual General Meeting, the move of the statutory seat from Saint-Sulpice, Canton Vaud, Switzerland to Rolle, Canton Vaud, Switzerland was approved.

Going concern basis

As of December 31, 2023 and 2022, the Company’s cash and cash equivalents and short-term deposits amounted to CHF 45 million and CHF 80 million, respectively. Additionally, the Company’s short term loans to group companies amounted to CHF 49 million and CH 82 million. The loan will be partially refunded in 2024 to fund the cash required for the company's operations throughout the year.

The Board of Directors believes that the Company has sufficient financial resources to meet all of its obligations for at least the next twelve months. Moreover, the Company is not exposed to liquidity risk through requests for early repayment of loans.


3


A.2 Significant accounting policies

Basis of preparation

Compliance with the Swiss Code of Obligations

The financial statements have been prepared in accordance with the provisions of the Swiss Code of Obligations (Art. 957 to 963b CO, effective since January 1, 2013). Where necessary, comparatives have been adjusted to conform with changes in presentation in the current year. Due to rounding, numbers presented throughout these financial statements may not add up precisely to the totals provided.

Accounting policies

Inventory

Raw materials and finished goods are stated at the lower of cost calculated using the FIFO (first-in, first-out) method and net realizable value. Work in progress is stated at the lower of its weighted average cost and net realizable value. Cost comprises direct materials, direct labor and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity.
Investments in subsidiaries

Investments are stated at cost less provision for permanent impairment in value.

Property and equipment

Property and equipment include leasehold improvements, computer hardware, machinery and furniture and fixtures.

Property and equipment are shown on the balance sheet at cost less accumulated depreciation. The cost of an asset, less any residual value, is depreciated using the straight-line method over the useful life of the asset. For this purpose, assets with similar useful lives have been grouped as follows:

•Leasehold improvements—Shorter of the useful life of the asset or the remaining term of the lease
•Computer hardware—Three to five years
•Machinery and equipment—Five years
•Furniture and fixtures—Five years

Useful lives, components, and residual amounts are reviewed annually. Such a review takes into consideration the nature of the assets, their intended use, including but not limited to the closure of facilities, and the evolution of the technology and competitive pressures that may lead to technical obsolescence. Depreciation of property and equipment is allocated to the appropriate headings of expenses by function in the statement of loss.

Reviews of the carrying amount of the Company’s property and equipment are performed when there is an indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. The recoverable amount of an asset is the greater of its value in use and its fair value less costs of disposal. In assessing the value in use, the estimated future cash flows are discounted to their present value, based on the time value of money and the risks specific to the country where the assets are located.

Intangible assets

Intangible assets, which comprise costs linked with patents, development cost for internally developed software and implementation costs for purchased software, are stated at cost less accumulated amortization. Amortization is calculated on a straight-line basis over the estimated useful life of the assets (five years for capitalized development - internal software costs). Research costs are expensed as incurred.

Development costs are composed of capitalized salaries and subcontractor’s expenses that are directly linked to the development of the platform and/or the algorithms and/or some submitted or envisaged patents.

Development expenditures on an individual project are recognized as an intangible asset when the Company can demonstrate:

•The technical feasibility of completing the intangible asset so that the asset will be available for use or sale
•Its intention to complete and its ability and intention to use or sell the asset
•How the asset will generate future economic benefits
•The availability of resources to complete the asset
•The ability to measure reliably the expenditure during development

Leases

The Company assesses at inception of the contract whether a contract is or contains a lease. This assessment involves determining whether the Company obtains substantially all the economic benefits from the use of that asset, and whether the Company has the right to direct the use of the asset. When these conditions are met, the Company recognizes a right-of-use (“ROU”) asset and a lease liability at the lease commencement date, except for short-term
4


leases of 12 months or less, which are expensed in the statement of income/loss on a straight-line basis over the lease term.

Revenue from sales of goods and services

Revenue represents amounts received and receivable from third parties for goods supplied and services rendered to customers. Revenues are reported net of rebates and discounts and net of sales and value added taxes in an amount that reflects the consideration that is expected to be received for goods or services. The majority of the sales revenue is recognized: (i) when customers generate analyses on their patient data through the SOPHiA DDM Platform, (ii) when consumables, namely DNA enrichment kits, are delivered to customers at which point control transfers, (iii) when services, namely set-up programs, are performed and (iv) over the duration of the software licensing arrangements for the Alamut software offerings.

Products and services are sold both directly to customers and through distributors, generally under agreements with payment terms of up to 180 days. Therefore, contracts do not contain a significant financing component.

For all contracts with customers the following steps are performed to determine the amount of revenue to be recognized and when it should be recognized: (1) identify the contract or contracts; (2) determine whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (3) measure the transaction price, including the constraint on variable consideration; (4) allocate the transaction price to the performance obligations based on estimated selling prices; and (5) recognize revenue when (or as) each performance obligation is satisfied.
SOPHiA DDM Platform

The majority of the SOPHiA DDM Platform revenue is derived from each use of the SOPHiA DDM Platform by customers to generate analyses on their patient data. Analysis revenue is recognized as analysis results are made available to the customer on the SOPHiA DDM Platform. The Company recognizes accrued contract revenue in accounts receivable for any analyses performed by customers that have not been invoiced at the reporting date and where the right to consideration is unconditional. Any payments received in advance of customers generating analyses are recorded as deferred contract revenue until the analyses are performed.

Customers use the SOPHiA DDM Platform to perform analyses under three different models: dry lab access; bundle access; and integrated solutions.

For dry lab contracts, customers use the testing instruments and consumables of their choice and the SOPHiA DDM Platform and algorithms for variant detection and identification. In these arrangements, the Company has identified one performance obligation, which is the delivery of the analysis result to the customer.

For bundle arrangements, customers purchase a DNA enrichment kit along with each analysis. Customers use the DNA enrichment kit in the process of performing their own sequencing of each sample. Customers then upload their patient data to the SOPHiA DDM Platform for analysis. In these arrangements, the Company has identified two performance obligations: the delivery of the DNA enrichment kits and the performance of the analyses. Revenue is recognized for the DNA enrichment kits when control of products has transferred to the customer, which is generally at the time of delivery, as this is when title and risk of loss have been transferred. Revenue for the performance of the analyses is recognized on delivery of the analysis results to the customer. Refer to Arrangements with multiple performance obligations below for how revenue is allocated between the performance obligations.

Deferred contract revenue balances relating to analyses not performed within 12 months from the date of the delivery date are recognized as revenue. This policy is not based on contractual conditions but on the Company’s experience of customer behavior and expiration of the kits associated with the analyses.

For integrated arrangements, customers have their samples processed and sequenced through selected SOPHiA DDM Platform partners within the clinical network and access their data through the SOPHiA DDM Platform. The Company has identified one performance obligation, which is delivery of the analysis results to the customer through the SOPHiA DDM Platform.

The Company also sells access to its Alamut software application (“Alamut”) through the SOPHiA DDM Platform. Some arrangements with customers allow customers to use Alamut as a hosted software service over the contract period without the customer taking possession of the software. Other customers take possession of the software, but the utility of that software is limited by access to the Company’s proprietary SOPHiA database, which is provided to the customer on a fixed term basis. Under both models, revenue is recognized on a straight-line basis over the duration of the agreement.
5


The Company also derives revenue from the SOPHiA DDM Platform by providing services to biopharma customers who engage the Company to (i) develop and perform customized genomic analyses and/or (ii) access the database for use in clinical trials and other research projects.

The Company does enter into biopharma contracts that contain multiple products or services or non-standard terms and conditions. The biopharma contracts are generally unique in nature and each contract is assessed upon execution. Contracts may contain multiple performance obligations or performance obligations that are recognized overtime, at a point-in-time, or a combination depending on the Company’s ability to satisfy the requirements to recognize revenue over time and reasonably estimate the amount of revenue to recognize. See “Arrangements with multiple performance obligations” below for further discussion on treatment of biopharma contracts.

Generally, the primary performance obligation in these arrangements is the delivery of analysis results in the form of a final report, resulting in revenue being recognized, in most cases, upon the issuance of the final report or successful recruitment of clinical trial participants.

Workflow materials and services

Revenue from workflow materials and services includes all revenue from the sale of materials and services that do not form part of a contract for the provision of platform services. These include the provision of set-up programs and training and the sale of kits and tests that are not linked to use of the platform. Set-up programs and training are typically combined with a customer’s first order prior to the customer beginning to use the SOPHiA DDM Platform.

Revenue from services is generally recognized when the services are performed. Revenue from materials is recognized when control of the goods is transferred to the customer, generally at the time of delivery. This category of revenue also includes the revenue from the sale of DNA sequencing automation equipment accounted for under IFRS 16, Leases (“IFRS 16”), leasing and the fees charged for the maintenance of this equipment.

Arrangements with multiple performance obligations
The Company sells different combinations of analyses, consumables, and services to its customers under its various SOPHiA DDM Platform models.
The Company has determined that the stand-alone selling prices for services and DNA enrichment kits are directly observable. For set-up programs and training sold along with dry lab arrangements or bundle arrangements, the stand-alone selling price of these services is determined on a time and materials basis. For DNA enrichment kits sold as part of a bundle, the SSP is based on an expected cost-plus-margin approach of the kit portion of the bundle.
The Company has determined that the SSP for the analyses, in both a dry lab arrangement and bundle arrangement, is highly variable and therefore a representative SSP is not discernible from past transactions. As a result, the residual approach is used to determine the stand-alone selling price of the analyses in dry lab arrangements that include services and in bundle arrangements that include DNA enrichment kits and, in some cases, services.
The Company also has a small number of bundle contracts with a fixed term that also include providing the customer with DNA sequencing automation equipment, which the Company has determined is an IFRS 16 leasing component. In these arrangements the Company provides DNA sequencing automation equipment to the customer over the fixed term and at completion of the contract term the customer takes possession of the equipment. The Company has determined that it is a dealer lessor and provision of this equipment to the customer is classified as a finance lease. As a result, upon delivery of the leased equipment at the inception of the arrangement, a selling profit is recognized based on the fair value of the underlying equipment less the cost of the equipment. Over the term of the agreement, the minimum lease payment is deducted from the proceeds of the bundle sales in order to reduce the net investment in the corresponding lease receivable over the contract term and interest income is recognized as the discount on the lease receivable unwinds. The remaining proceeds from the contract are accounted for under IFRS 15, Revenue from Contracts with Customers (“IFRS 15”), using the policies described above.
The Company assess biopharma contracts upon execution of each contract given their unique nature. The Company establishes each performance obligation within the contract and determines the appropriate value to be ascribed to be each performance obligation. When relevant the Company utilizes previous established SSPs of its dry lab and bundle solutions or other service. When the performance obligation is specific to only the contract the Company utilizes all available information to reasonable estimate the correct value allocated to the performance obligation.

6




B. Information on the balance sheet and income statement items

1.Trade accounts receivable

(in CHF)December 31, 2023December 31, 2022
Accounts receivable due from third parties5,120,025 3,285,464 
Provision for doubtful receivable(700,231)(808,119)
Accounts receivable due from group companies3,176,639 2,946,830 
Total7,596,433 5,424,175 

2.Inventory

(in CHF)December 31, 2023December 31, 2022
Raw materials5,892,698 4,802,348 
Work in progress and finished goods1,353,972 1,345,454 
Provision(1,795,047)(1,389,506)
Total5,451,623 4,758,296 

3.Short term loans to group companies


(in CHF)December 31, 2023December 31, 2022
SOPHiA GENETICS INC48,929,564 81,353,425 
SOPHIA GENETICS S.r.l— 396,730 
Total48,929,564 81,750,155 

4.Investments in subsidiaries

(in CHF)Share in capital / voting rights Net book value
CompanyDomicileDecember 31, 2023December 31, 2022December 31, 2023December 31, 2022
SOPHiA GENETICS SASBidart (France)100%100%11,395,58911,395,589
SOPHiA GENETICS LtdLondon (UK)100%100%2,230,2882,230,288
SOPHiA GENETICS INCBoston (USA)100%100%4,583,8344,583,834
SOPHiA GENETICS S.R.L.Milano (Italy)100%100%10,67510,675
SOPHIA GENETICS INTERMEDIACAO DE NEGOCIOS LTDASao Paulo (Brazil)100%100%946,600946,600
SOPHiA GENETICS PTY LTDBrisbane (Australia)100%100%8282
Total19,167,06819,167,068

5.Other short term liabilities due to third parties

The amount due to the Swiss pension fund was CHF 655,373 as at December 31, 2023 and CHF 624,920 as at December 31, 2022.








6.Share capital and reserves from capital contribution

7


(in CHF, except shares)Number of SharesShare CapitalNumber of Treasury SharesTreasury sharesReserve from capital contributionOther capital reserves
January 1, 202263,857,604 3,192,880 — — 441,715,814 1,204,803 
Share options exercised and vesting of Restricted Stock Units— — 373,616 18,681 696,730 — 
Issuance of shares2,540,560 127,028 — — — — 
Purchase of treasury shares— — (2,540,560)(127,028)— — 
December 31, 202266,398,164 3,319,908 (2,166,944)(108,347)442,412,544 1,204,803 
Share options exercised and vesting of Restricted Stock Units— — 999,349 49,967 156,981 — 
Issuance of shares10,500,000 525,000 — — — — 
Purchase of treasury shares— — (10,500,000)(525,000)— — 
December 31, 202376,898,164 3,844,908 (11,667,595)(583,380)442,569,525 1,204,803 

Treasury shares
During the first quarter of 2022, the Company issued 2,540,560 registered shares to SOPHiA GENETICS LTD pursuant to a share delivery and repurchase agreement, which were immediately exercised, and repurchased the shares to hold as treasury shares for the purposes of administering the Company's equity incentive programs. During the second quarter of 2023, the Company issued 10,500,000 registered shares to SOPHiA GENETICS LTD pursuant to a share delivery and repurchase agreement, which were immediately exercised, and repurchased the shares to hold as treasury shares. The Company held 11,667,605 and 2,166,944 treasury shares as of December 31, 2023 and 2022, respectively.
Treasury shares are recognized at acquisition cost and recorded as treasury shares at the time of the transaction. Upon exercise of share options or vesting of restricted stock units, the treasury shares are subsequently transferred. Any consideration received is included in shareholders’ equity.
Reserve from capital contribution

As at December 31, 2023, the amount not approved yet by the tax authorities is CHF 853,711.

Conditional share capital

In accordance with the Company’s articles of association, the Board of Directors may decide to increase the share capital under certain circumstances. The company may issue registered shares in favor of employees, agents, members of the Board of Directors according to the stock options plan.

As at December 31, 2023, the conditional share capital amounted to 14,800,000 ordinary shares of CHF 0.05 each.

7.Leases

On March 3, 2021, the Company entered into a 120-month lease for office space in Rolle, Switzerland primarily to support the expansion of the research and development department. The lease in total is for approximately 38,750 square feet with the Company gaining access to areas on prescribed dates. The Company gained access to 11,840 square feet on July 1, 2021. The Company gained access to 7,535 square feet on January 1, 2022 and the remaining 19,375 square feet on February 1, 2023. The expected lease commitments resulting from this contract are less than CHF 0.1 million in 2021, CHF 0.4 million in 2022, CHF 0.9 million in 2023, and CHF 1.0 million from 2024 onward. The expected lease commitments are linked to changes in the Swiss Consumer Price Index as published by Swiss Federal Statistical Office.

On January 25, 2022 the Company entered into an amendment to the lease for office space in Rolle, Switzerland. The amendment provides the company with an additional floor of approximately 21,258 square feet with lease commencement initiating on April 1, 2022. Upon commencement of the lease, the Company recorded a right-of-use asset of CHF 4.1 million and a lease liability of CHF 4.1 million.

The Company makes fixed payments and additional variable payments depending on the usage of the asset during the contract period. As at December 31, 2021, the Company stated a ROU asset of CHF 8.6 million and a lease liability of CHF 9.8 million. The difference between the ROU and lease liability of CHF 1.2 million is driven by lease incentives and expected restoration costs.

8


8.Revenue from sales of goods and services

(in CHF)20232022
Revenue from third parties24,900,322 24,836,670 
Revenue from subsidiaries7,984,501 7,021,120 
Total32,884,823 31,857,790 
(in CHF)20232022
SOPHiA DDM Platform32,001,335 30,386,738 
Workflow materials and services883,488 1,471,052 
Total32,884,823 31,857,790 

9.Other operating expenses

(in CHF)20232022
Rent154,553 242,268 
Communication 186,385 234,647 
License3,232,999 3,322,573 
Liability insurance2,156,917 3,485,820 
Bad debt provision40,734 (287,638)
Small IT devices / Office supplies318,345 624,516 
Transportation & shipping543,643 452,243 
Custom duties and taxes20,558 77,686 
Intercompany recharge13,609,621 26,276,207 
Other588,604 434,259 
Total20,852,359 34,862,581 

9



C. Other information

1.Full time equivalents

The annual average number of full-time equivalents was above 250 during FY 2023 and FY 2022.

2.Number of shares and options on shares for executive officers, directors and employees

Options and RSUs - Granted in 2022
(in CHF, except for share data)Number of Options and RSUsAmount
Issued to executive officers and directors1,223,9062,330,818
Issued to employees1,738,2112,970,457
Total2,962,1175,301,275

Options and RSUs - Granted in 2023
(in CHF, except for share data)Number of Options and RSUsAmount
Issued to executive officers and directors3,785,94312,705,760
Issued to employees2,606,4738,319,628
Total6,392,41621,025,388

Share values are based on the Company’s closing share price of USD 2.06 (CHF 1.91) at December 31, 2022 and USD 4.71 (CHF 4.23) at December 31, 2023.

Equity awards are comprised of options and restricted share unit (“RSU“) awards. The fair value of the Company’s options is determined using the Black-Scholes Model and its RSU awards are valued using the closing share price of the Company’s registered shares traded on the NASDAQ on the date of the award. Total shares are derived from the Company’s transfer agent’s records as at December 31, 2022 and as at December 31, 2023.

The shareholdings in the Company, the conversion and option rights held by each current member of the board of directors, executive board and advisory board, including these hold by their close associates are disclosed in the compensation report.

3.Major Shareholders
The following table presents information relating to the beneficial ownership of our ordinary shares as of February 15, 2024 by:
•each person, or group of affiliated persons, known by us to own beneficially 5% or more of our outstanding ordinary shares;
•each of our executive officers and directors and persons nominated to serve in such positions; and
•all executive officers and directors and persons nominated to serve in such positions as a group.
The number of ordinary shares beneficially owned by each entity, person, executive officer or director is determined in accordance with the rules of the SEC, and the information is not necessarily indicative of beneficial ownership for any other purpose. Under such rules, beneficial ownership includes any ordinary shares over which the individual has sole or shared voting power or investment power as well as any ordinary shares that the individual has the right to acquire within 60 days from February 15, 2024 through the exercise of any option or other right. Except as otherwise indicated, and subject to applicable community property laws, we believe that the persons named in the table have sole voting and investment power with respect to all ordinary shares held by that person based on information provided to us by such person.
The percentage of outstanding ordinary shares beneficially owned is computed on the basis of 65,301,358 ordinary shares outstanding as of February 15, 2024. Ordinary shares that a person has the right to acquire within 60 days are deemed outstanding for purposes of computing the percentage ownership of the person holding such rights, but are not deemed outstanding for purposes of computing the percentage ownership of any other person, except with respect to the percentage ownership of all executive officers and directors as a group. Unless otherwise indicated
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below, the business address for each beneficial owner is SOPHiA GENETICS SA, La Pièce 12, CH-1180 Rolle, Switzerland.
Number of Ordinary SharesPercentage of Ordinary Shares
Principal ShareholdersBeneficially OwnedBeneficially Owned
5% or Greater Shareholders
Alychlo NV(1)
6,993,80010.71%
Generation IM Sustainable Solutions Fund III, L.P.(2)
6,789,56010.40%
Balderton Capital VI, S.L.P.(3)
3,361,8805.15%
Executive Officers and Directors
Jurgi Camblong(4)
2,460,0813.77%
Zhenyu Xu(4)
414,249*
Vincent Ossipow395,502*
Troy Cox185,942*
Daan van Well91,827*
Didier Hirsch74,522*
Jean-Michel Cosséry63,411*
Ross Muken61,537*
Philippe Menu41,749*
Manuela da Silva Valente39,900*
Kathy Hibbs37,414*
Tomer Berkovitz—*
Lila Tretikov—*
All executive officers and directors as a group (13 persons)3,866,1345.92%
*Less than 1% of our total outstanding ordinary shares.
(1)This information is based solely on a Schedule 13G filed by Alychlo NV and Marc Coucke with the SEC on February 14, 2022. Marc Coucke is the principal shareholder, chairman and managing director of Alychlo NV. The principal business address of each of the foregoing persons or entities is Lembergsesteenweg 19, 9820 Merelbeke, Belgium.
(2)This information is based solely on a Schedule 13G filed by Generation Investment Management LLP, Generation IM Sustainable Solutions III, GP Ltd and Generation IM Sustainable Solutions Fund III, L.P. with the SEC on February 13, 2024. The principal business address of each of the foregoing entities is 20 Air Street, 7th floor, London, United Kingdom W1B 5AN.
(3)This information is based solely on a Schedule 13G filed by Balderton Capital VI, S.L.P. with the SEC on February 14, 2023. Balderton Capital General Partner VI, S.a.r.l. is the managing general partner of Balderton Capital VI, S.L.P. and may be deemed to have voting, investment and dispositive power with respect to these securities. Adrian Rainey, Donatien-Xavier Martin and Marie Calinet are the managers of Balderton Capital General Partner VI, S.a.r.l. and may each be deemed to share voting, investment, and dispositive power with respect to these securities.
(4)The shares owned by the parties have been pledged pursuant to lending arrangements.
As of February 15, 2024, we had approximately 169 shareholders of record of our ordinary shares. We estimate that as of February 15, 2024, approximately 61.55% of our outstanding ordinary shares are held by 18 U.S. record holders. The actual number of shareholders is greater than this number of record holders and includes shareholders who are beneficial owners but whose shares are held in street name by brokers and other nominees. This number of holders of record also does not include shareholders whose shares may be held in trust or by other entities such as Cede & Co. as nominee for the Depository Trust Company.
We have experienced significant changes in the percentage ownership held by major shareholders as a result of our initial public offering. Prior to our initial public offering, our principal shareholders were Alychlo NV, Generation Investment Management LLP and Balderton Capital VI, S.L.P., which held ordinary shares representing 14.2%, 13.8% and 6.8% of our outstanding ordinary shares prior to our initial public offering.



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4.Subsequent events

The Company has evaluated, for potential recognition and disclosure, events that occurred prior to the date at which the statutory financial statements were available to be authorized for issuance. There were no material subsequent events.















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Proposed carry forward of the accumulated deficit
(in CHF)
20232022
Accumulated deficit at the beginning of the period(253,208,109)(181,995,748)
Loss for the year(57,610,332)(71,212,361)
Accumulated deficit available to the general meeting(310,818,441)(253,208,109)
Motion of the board of directors on the allocation of the accumulated deficit for the year ended December 31
(in CHF)
20232022
Motion of theResolution of
board ofthe general
directors meeting
Accumulated deficit available to the general meeting(310,818,441)(253,208,109)
Carried forward(310,818,441)(253,208,109)


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