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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2023
OR
 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 001-35092
EXACT SCIENCES CORPORATION
(Exact name of registrant as specified in its charter)
Delaware02-0478229
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification Number)
5505 Endeavor Lane, Madison WI
53719
(Address of principal executive offices)(Zip Code)
(608) 535-8815 (Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per shareEXASThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 
Indicate by check mark whether the registrant has submitted electronically, if any, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer 
Non-accelerated filerSmaller reporting company 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No 
As of May 8, 2023, the registrant had 180,388,167 shares of common stock outstanding.



EXACT SCIENCES CORPORATION
INDEX
Page
Number

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EXACT SCIENCES CORPORATION
Condensed Consolidated Balance Sheets
(Amounts in thousands, except share data - unaudited)
Part I — Financial Information
March 31, 2023December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents$421,365 $242,493 
Marketable securities277,282 389,564 
Accounts receivable, net183,371 158,043 
Inventory124,092 118,259 
Prepaid expenses and other current assets85,274 73,898 
Total current assets1,091,384 982,257 
Long-term Assets:
Property, plant and equipment, net684,574 684,756 
Operating lease right-of-use assets156,782 167,003 
Goodwill2,346,235 2,346,040 
Intangible assets, net1,933,481 1,956,240 
Other long-term assets, net91,872 90,577 
Total assets$6,304,328 $6,226,873 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$86,713 $74,916 
Accrued liabilities241,844 299,216 
Operating lease liabilities, current portion30,014 28,366 
Other current liabilities8,783 10,249 
Total current liabilities367,354 412,747 
Long-term liabilities:
Convertible notes, net2,310,196 2,186,106 
Long-term debt50,000 50,000 
Other long-term liabilities344,380 352,459 
Operating lease liabilities, less current portion174,690 182,399 
Total liabilities3,246,620 3,183,711 
Commitments and contingencies (Note 14)
Stockholders’ equity:
Preferred stock, $0.01 par value Authorized—5,000,000; shares issued and outstanding—no shares at March 31, 2023 and December 31, 2022
  
Common stock, $0.01 par value Authorized—400,000,000; shares issued and outstanding—179,830,145 and 177,925,631 shares at March 31, 2023 and December 31, 2022
1,799 1,780 
Additional paid-in capital6,396,805 6,311,644 
Accumulated other comprehensive loss(1,719)(5,236)
Accumulated deficit(3,339,177)(3,265,026)
Total stockholders’ equity3,057,708 3,043,162 
Total liabilities and stockholders’ equity$6,304,328 $6,226,873 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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EXACT SCIENCES CORPORATION
Condensed Consolidated Statements of Operations
(Amounts in thousands, except per share data - unaudited)
Three Months Ended March 31,
20232022
Revenue$602,450 $486,571 
Operating expenses
Cost of sales (exclusive of amortization of acquired intangible assets)156,866 134,705 
Research and development95,419 102,248 
Sales and marketing186,964 232,181 
General and administrative217,295 169,770 
Amortization of acquired intangible assets22,928 24,654 
Impairment of long-lived assets69  
Total operating expenses679,541 663,558 
Loss from operations(77,091)(176,987)
Other income (expense)
Investment income (loss), net490 (1,487)
Interest income (expense), net4,107 (4,478)
Total other income (expense)4,597 (5,965)
Net loss before tax(72,494)(182,952)
Income tax benefit (expense)(1,657)2,015 
Net loss$(74,151)$(180,937)
Net loss per share—basic and diluted$(0.42)$(1.04)
Weighted average common shares outstanding—basic and diluted178,574 174,417 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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EXACT SCIENCES CORPORATION
Condensed Consolidated Statements of Comprehensive Loss
(Amounts in thousands - unaudited)
Three Months Ended March 31,
20232022
Net loss$(74,151)$(180,937)
Other comprehensive loss, net of tax:
Unrealized gain (loss) on available-for-sale investments2,967 (4,967)
Foreign currency translation adjustment550 (237)
Comprehensive loss$(70,634)$(186,141)
The accompanying notes are an integral part of these condensed consolidated financial statements.
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EXACT SCIENCES CORPORATION
Condensed Consolidated Statements of Stockholders’ Equity
(Amounts in thousands, except share data - unaudited)
Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive LossAccumulated DeficitTotal Stockholders’ Equity
Number of Shares
$0.01
Par Value
Balance, January 1, 2023177,925,631 $1,780 $6,311,644 $(5,236)$(3,265,026)$3,043,162 
Exercise of common stock options88,228 1 963 — — 964 
Issuance of common stock to fund the Company’s 2022 401(k) match517,215 5 35,072 — — 35,077 
Compensation expense related to issuance of stock options and restricted stock awards1,299,071 13 49,126 — — 49,139 
Net loss— — — — (74,151)(74,151)
Other comprehensive income
— — — 3,517 — 3,517 
Balance, March 31, 2023179,830,145 $1,799 $6,396,805 $(1,719)$(3,339,177)$3,057,708 

Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive LossAccumulated DeficitTotal Stockholders’ Equity
Number of Shares
$0.01
Par Value
Balance, January 1, 2022173,674,067 $1,738 $6,028,861 $(1,443)$(2,641,520)$3,387,636 
Exercise of common stock options485,537 5 4,277 — — 4,282 
Compensation expense related to issuance of stock options and restricted stock awards1,391,797 14 52,427 — — 52,441 
Other7 — (7)— — (7)
Net loss— — — — (180,937)(180,937)
Other comprehensive loss
— — — (5,204)— (5,204)
Balance, March 31, 2022175,551,408 $1,757 $6,085,558 $(6,647)$(2,822,457)$3,258,211 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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EXACT SCIENCES CORPORATION
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands - unaudited)
Three Months Ended March 31,
20232022
Cash flows from operating activities:
Net loss$(74,151)$(180,937)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation26,815 22,993 
Loss on disposal of property, plant and equipment284 321 
Unrealized loss on equity investments3,009 1,350 
Deferred tax expense (benefit)1,261 (1,912)
Stock-based compensation49,139 52,441 
Gain on settlements of convertible notes, net(10,324) 
Amortization of deferred financing costs, convertible note debt discount and issuance costs, and other liabilities1,783 1,700 
Accretion (Amortization) of discount (premium) on short-term investments(54)956 
Amortization of acquired intangible assets22,928 24,654 
Impairment of long-lived assets69  
Remeasurement of contingent consideration(8,937)(26,680)
Non-cash lease expense6,806 7,363 
Changes in assets and liabilities:
Accounts receivable, net(25,434)11,020 
Inventory, net(5,827)(7,964)
Operating lease liabilities(5,982)(5,177)
Accounts payable and accrued liabilities(4,817)(66,048)
Other assets(13,622)(6,619)
Other liabilities(1,161)(1,215)
Net cash used in operating activities(38,215)(173,754)
Cash flows from investing activities:
Purchases of marketable securities(8,589)(70,267)
Maturities and sales of marketable securities121,332 150,630 
Purchases of property, plant and equipment(29,360)(33,623)
Investments in privately held companies(442)(1,172)
Other investing activities (7)
Net cash provided by investing activities82,941 45,561 
Cash flows from financing activities:
Proceeds from exercise of common stock options964 4,282 
Proceeds from issuance of convertible notes137,976  
Other financing activities(5,344)(1,547)
Net cash provided by financing activities133,596 2,735 
Effects of exchange rate changes on cash and cash equivalents550 (237)
Net increase (decrease) in cash, cash equivalents and restricted cash178,872 (125,695)
Cash, cash equivalents and restricted cash, beginning of period242,790 315,768 
Cash, cash equivalents and restricted cash, end of period$421,662 $190,073 


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EXACT SCIENCES CORPORATION
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands - unaudited)
Three Months Ended March 31,
20232022
Supplemental disclosure of non-cash investing and financing activities
Property, plant and equipment acquired but not paid$10,548 $31,491 
Supplemental disclosure of cash flow information:
Interest paid$6,442 $5,133 
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents$421,365 $189,776 
Restricted cash — included in prepaid expenses and other current assets as of March 31, 2023, and other long-term assets, net as of March 31, 2022
297 297 
Total cash, cash equivalents and restricted cash$421,662 $190,073 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)

(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Business
Exact Sciences Corporation (together with its subsidiaries, “Exact,” or the “Company”) was incorporated in February 1995. Exact is a leading global cancer diagnostics company. It has developed some of the most impactful tests in cancer screening and diagnostics, including Cologuard® and Oncotype DX®. Exact is currently working on the development of additional tests, with the goal of bringing new, innovative cancer tests to patients throughout the world.
Basis of Presentation and Principles of Consolidation
The accompanying condensed consolidated financial statements, which include the accounts of the Company and those of its wholly owned subsidiaries and variable interest entities, are unaudited and have been prepared on a basis substantially consistent with the Company’s audited financial statements and notes as of and for the year ended December 31, 2022 included in the Company’s Annual Report on Form 10-K (the “2022 Form 10-K”). All intercompany transactions and balances have been eliminated upon consolidation. These condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted (“GAAP”) in the United States of America (“U.S.”) and follow the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of adjustments of a normal and recurring nature) considered necessary for a fair statement of its financial position, operating results and cash flows for the periods presented. The condensed consolidated balance sheet at December 31, 2022 has been derived from audited financial statements, but does not contain all of the footnote disclosures from the 2022 Form 10-K. The results of the Company’s operations for any interim period are not necessarily indicative of the results of the Company’s operations for any other interim period or for a full fiscal year. The statements should be read in conjunction with the audited financial statements and related notes included in the 2022 Form 10-K.
Use of Estimates
The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Critical accounting policies are those that affect the Company’s financial statements materially and involve difficult, subjective or complex judgments by management, and actual results could differ from those estimates. These estimates include revenue recognition, valuation of intangible assets and goodwill, and accounting for income taxes among others. The Company’s critical accounting policies and estimates are explained further in the notes to the condensed consolidated financial statements in this Quarterly Report on Form 10-Q and the 2022 Form 10-K.
The spread of the coronavirus (“COVID-19”) and the macroeconomic conditions including inflation and fluctuations in foreign currency exchange rates has affected many segments of the global economy, including the cancer screening and diagnostics industry. The Company expects these matters to have an impact on operations, however, the ultimate impact presents uncertainty and depends on factors beyond the Company’s knowledge or control, including the duration and severity, as well as third-party actions taken. The Company continues to use the best information available to inform its accounting estimates in light of these uncertainties.
Significant Accounting Policies
During the three months ended March 31, 2023, there were no changes to the Company’s significant accounting policies as described in the Company’s 2022 Form 10-K.
Reclassifications
Certain prior year amounts have been reclassified to conform to the current year presentation in the condensed consolidated financial statements and accompanying notes to the condensed consolidated financial statements.
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EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Recent Accounting Pronouncements
The Company did not adopt any accounting standards updates (“ASU”) released by the Financial Accounting Standards Board (“FASB”) in the first quarter of 2023. In addition, there are no ASUs not yet adopted that are expected to impact the Company.
Net Loss Per Share
Basic net loss per common share was determined by dividing net loss applicable to common stockholders by the weighted average common shares outstanding during the period. Basic and diluted net loss per share is the same because all outstanding common stock equivalents have been excluded, as they are anti-dilutive as a result of the Company’s losses.
The following potentially issuable common shares were not included in the computation of diluted net loss per share because they would have an anti-dilutive effect due to net losses for each period:
March 31,
(In thousands)20232022
Shares issuable upon conversion of convertible notes23,231 20,309 
Shares issuable upon the release of restricted stock awards6,877 6,991 
Shares issuable upon the release of performance share units1,671 963 
Shares issuable upon exercise of stock options1,416 1,790 
Shares issuable in connection with acquisitions 45 
33,195 30,098 

(2) REVENUE
The Company’s revenue is primarily generated by its laboratory testing services utilizing its Cologuard, Oncotype®, and COVID-19 tests. The services are completed upon release of a patient’s test result to the ordering healthcare provider.
The following table presents the Company’s revenues disaggregated by revenue source:
Three Months Ended March 31,
(In thousands)20232022
Screening
Medicare Parts B & C$171,730 $113,755 
Commercial233,033 161,680 
Other38,432 31,087 
Total Screening443,195 306,522 
Precision Oncology
Medicare Parts B & C$47,381 $52,565 
Commercial44,932 46,062 
International37,268 29,560 
Other25,851 24,433 
Total Precision Oncology155,432 152,620 
COVID-19 Testing$3,823 $27,429 
Total$602,450 $486,571 
Screening revenue primarily includes laboratory service revenue from Cologuard and PreventionGenetics LLC (“PreventionGenetics”) tests while Precision Oncology revenue includes laboratory service revenue from global Oncotype products and therapy selection products.
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EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)
At each reporting period end, the Company conducts an analysis of the estimates used to calculate the transaction price to determine whether any new information available impacts those estimates made in prior reporting periods. The Company recognized revenue from a change in transaction price of $11.7 million and $4.2 million for the three months ended March 31, 2023 and 2022, respectively.
The Company’s deferred revenue, which is reported in other current liabilities in the Company’s condensed consolidated balance sheets, was not material as of March 31, 2023 and December 31, 2022.
Revenue recognized for the three months ended March 31, 2023 and 2022, respectively, which was included in the deferred revenue balance at the beginning of the period, was not material.

(3) MARKETABLE SECURITIES
The following table sets forth the Company’s cash, cash equivalents, and marketable securities at March 31, 2023 and December 31, 2022:
(In thousands)March 31, 2023December 31, 2022
Cash and cash equivalents
Cash and money market$351,549 $178,168 
Cash equivalents69,816 64,325 
Total cash and cash equivalents421,365 242,493 
Marketable securities
Available-for-sale debt securities$274,694 $384,415 
Equity securities2,588 5,149 
Total marketable securities277,282 389,564 
Total cash, cash equivalents and marketable securities$698,647 $632,057 
Available-for-sale debt securities, including the classification within the condensed consolidated balance sheet at March 31, 2023, consisted of the following:
(In thousands)Amortized CostGains in Accumulated Other Comprehensive Income (Loss) (1)Losses in Accumulated Other Comprehensive Income (Loss) (1)Estimated Fair Value
Cash equivalents
Commercial paper$68,081 $ $ $68,081 
U.S. government agency securities1,735   1,735 
Total cash equivalents69,816   69,816 
Marketable securities
U.S. government agency securities$147,979 $16 $(909)$147,086 
Corporate bonds97,378 18 (948)96,448 
Asset backed securities31,659 106 (605)31,160 
Total marketable securities277,016 140 (2,462)274,694 
Total available-for-sale securities$346,832 $140 $(2,462)$344,510 
______________
(1)There was no tax impact from the gains and losses in accumulated other comprehensive income (loss) (“AOCI”).
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EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Available-for-sale debt securities, including the classification within the condensed consolidated balance sheet at December 31, 2022, consisted of the following:
(In thousands)Amortized CostGains in Accumulated Other Comprehensive Income (Loss) (1) Losses in Accumulated Other Comprehensive Income (Loss) (1)Estimated Fair Value
Cash equivalents
Commercial paper$63,021 $ $ $63,021 
U.S. government agency securities1,304   1,304 
Total cash equivalents64,325   64,325 
Marketable securities
U.S. government agency securities$228,012 $ $(2,789)$225,223 
Corporate bonds116,318 20 (1,667)114,671 
Asset backed securities45,374 2 (855)44,521 
Total marketable securities389,704 22 (5,311)384,415 
Total available-for-sale securities$454,029 $22 $(5,311)$448,740 
______________
(1)There was no tax impact from the gains and losses in AOCI.
The following table summarizes contractual underlying maturities of the Company’s available-for-sale debt securities at March 31, 2023:
Due one year or lessDue after one year through five years
(In thousands)CostFair ValueCostFair Value
Cash equivalents
Commercial paper$68,081 $68,081 $ $ 
U.S. government agency securities1,735 1,735   
Total cash equivalents69,816 69,816   
Marketable securities
U.S. government agency securities$138,322 $137,423 $9,657 $9,663 
Corporate bonds82,071 81,169 15,307 15,279 
Asset backed securities1,191 1,189 30,468 29,971 
Total marketable securities221,584 219,781 55,432 54,913 
Total available-for-sale securities$291,400 $289,597 $55,432 $54,913 
The following table summarizes the gross unrealized losses and fair values of available-for-sale debt securities in an unrealized loss position as of March 31, 2023, aggregated by investment category and length of time those individual securities have been in a continuous unrealized loss position:
Less than one yearOne year or greaterTotal
(In thousands)Fair ValueGross Unrealized LossFair ValueGross Unrealized LossFair ValueGross Unrealized Loss
Marketable securities
U.S. government agency securities$35,897 $(161)$103,474 $(748)$139,371 $(909)
Corporate bonds16,430 (61)71,885 (887)88,315 (948)
Asset backed securities10,767 (100)18,544 (505)29,311 (605)
Total available-for-sale securities$63,094 $(322)$193,903 $(2,140)$256,997 $(2,462)
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EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)
The Company evaluates investments that are in an unrealized loss position for impairment as a result of credit loss. It was determined that no credit losses exist as of March 31, 2023 and December 31, 2022, because the change in market value for those securities in an unrealized loss position has resulted from fluctuating interest rates rather than a deterioration of the credit worthiness of the issuers.
The gains and losses recorded on available-for-sale debt securities and equity securities are included in investment income, net in the Company’s condensed consolidated statements of operations. The gains and losses recorded were not material for the three months ended March 31, 2023 and 2022.

(4) INVENTORY
Inventory consisted of the following:
(In thousands)March 31, 2023December 31, 2022
Raw materials$63,433 $61,207 
Semi-finished and finished goods60,659 57,052 
Total inventory$124,092 $118,259 

(5) PROPERTY, PLANT AND EQUIPMENT
The carrying value and estimated useful lives of property, plant and equipment are as follows:
(In thousands)Estimated Useful LifeMarch 31, 2023December 31, 2022
Property, plant and equipment
Landn/a$4,716 $4,716 
Leasehold and building improvements(1)200,314 200,588 
Land improvements15 years6,613 6,417 
Buildings
30 - 40 years
290,121 288,941 
Computer equipment and computer software3 years148,798 142,896 
Laboratory equipment
3 - 10 years
253,926 246,344 
Furniture and fixtures
3 - 10 years
34,601 34,047 
Assets under constructionn/a79,648 68,398 
Property, plant and equipment, at cost1,018,737 992,347 
Accumulated depreciation(334,163)(307,591)
Property, plant and equipment, net$684,574 $684,756 
______________
(1)Lesser of remaining lease term, building life, or estimated useful life.
Depreciation expense for the three months ended March 31, 2023 and 2022 was $26.8 million and $23.0 million, respectively.
At March 31, 2023, the Company had $79.6 million of assets under construction, which consisted of $51.9 million in laboratory equipment, $12.4 million in leasehold and building improvements, $10.1 million in capitalized costs related to software projects, and $5.2 million related to buildings. Depreciation will begin on these assets once they are placed into service upon completion.

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EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(6) INTANGIBLE ASSETS AND GOODWILL
Intangible Assets
The following table summarizes the net-book-value and estimated remaining life of the Company’s intangible assets as of March 31, 2023:
(In thousands)Weighted Average Remaining Life (Years)CostAccumulated Amortization
Net Balance at March 31, 2023
Finite-lived intangible assets
Trade name12.3$104,000 $(22,465)$81,535 
Customer relationships7.84,000 (556)3,444 
Patents and licenses4.111,542 (8,514)3,028 
Acquired developed technology (1)7.5861,644 (266,170)595,474 
Total finite-lived intangible assets981,186 (297,705)683,481 
In-process research and developmentn/a1,250,000 — 1,250,000 
Total intangible assets$2,231,186 $(297,705)$1,933,481 

The following table summarizes the net-book-value and estimated remaining life of the Company’s intangible assets as of December 31, 2022:
(In thousands)Weighted Average Remaining Life (Years)CostAccumulated Amortization
Net balance at December 31, 2022
Finite-lived intangible assets
Trade name12.5$104,000 $(20,653)$83,347 
Customer relationships8.04,000 (444)3,556 
Patents and licenses4.211,542 (8,152)3,390 
Acquired developed technology (1)7.8861,474 (245,527)615,947 
Total finite-lived intangible assets981,016 (274,776)706,240 
In-process research and developmentn/a1,250,000 — 1,250,000 
Total intangible assets$2,231,016 $(274,776)$1,956,240 
______________
(1)The gross carrying amount includes an immaterial foreign currency translation adjustment related to the intangible asset acquired as a result of the acquisition of OmicEra Diagnostics GmbH (“OmicEra”), whose functional currency is also its local currency. Intangible asset balances are translated into U.S. dollars using exchange rates in effect at period end, and adjustments related to foreign currency translation are included in other comprehensive income.
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EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)
As of March 31, 2023, the estimated future amortization expense associated with the Company’s finite-lived intangible assets for each of the five succeeding fiscal years is as follows:
(In thousands)
2023 (remaining nine months)$68,786 
202491,378 
202590,331 
202689,271 
202789,271 
Thereafter254,444 
$683,481 
The Company’s acquired intangible assets are being amortized on a straight-line basis over their estimated useful lives.
Goodwill
The change in the carrying amount of goodwill for the periods ended March 31, 2023 and December 31, 2022 is as follows:
(In thousands)
Balance, January 1, 2022
$2,335,172 
OmicEra acquisition10,809 
PreventionGenetics acquisition adjustment(58)
Effects of changes in foreign currency exchange rates (1)117 
Balance, December 31, 2022
2,346,040 
Effects of changes in foreign currency exchange rates (1)195 
Balance March 31, 2023
$2,346,235 
______________
(1)Represents the impact of foreign currency translation related to the goodwill acquired as a result of the acquisition of OmicEra. Goodwill balances are translated into U.S. dollars using exchange rates in effect at period end, and adjustments related to foreign currency translation are included in other comprehensive income.
There were no impairment losses for the three months ended March 31, 2023 and 2022.

(7) FAIR VALUE MEASUREMENTS
The three levels of the fair value hierarchy established are as follows:
Level 1    Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2    Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.
Level 3    Unobservable inputs that reflect the Company’s assumptions about the assumptions that market participants would use in pricing the asset or liability. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available.
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EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)
The following table presents the Company’s fair value measurements as of March 31, 2023 along with the level within the fair value hierarchy in which the fair value measurements, in their entirety, fall.
(In thousands)Fair Value at March 31, 2023Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Cash, cash equivalents, and restricted cash
Cash and money market$351,549 $351,549 $ $ 
Commercial paper68,081  68,081  
U.S. government agency securities1,735  1,735  
Restricted cash297 297   
Marketable securities
U.S. government agency securities$147,086 $ $147,086 $ 
Corporate bonds96,448  96,448  
Asset backed securities31,160  31,160  
Equity securities2,588 2,588   
Non-marketable securities$10,190 $ $ $10,190 
Liabilities
Contingent consideration$(297,990)$ $ $(297,990)
Total$411,144 $354,434 $344,510 $(287,800)
The following table presents the Company’s fair value measurements as of December 31, 2022 along with the level within the fair value hierarchy in which the fair value measurements, in their entirety, fall.
(In thousands)Fair Value at December 31, 2022Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Cash and cash equivalents
Cash and money market$178,168 $178,168 $ $ 
Commercial paper63,021  63,021  
U.S. government agency securities1,304  1,304  
Restricted cash297 297   
Marketable securities