NIH Contract

12 Months Ended

Dec. 31, 2021

NIH ContractIn 2020, we were awarded the NIH Contract under the RADx program to support the expansion of our production capacity and throughput capabilities for COVID-19 testing with our microfluidics technology. As of December 31, 2021, we have achieved the required milestones and have received the total NIH Contract value of $34.0 million. Proceeds from the NIH Contract have been and will be used primarily for capital expenditures to expand production capacity and, to a lesser extent, to offset applicable operating costs. Grant proceeds that exceed the cost of the capital expenditures and expenses expected to be incurred are recorded in other non-operating income.

The following tables summarize the activity under the NIH Contract through December 31, 2021 and 2020 (in thousands):


	Year Ended December 31,
	2021		2020
Cumulative cash receipts from milestones achieved	$	34,016	$	25,436
Cumulative amounts applied against operating costs (excluding depreciation)	(4,522)		(1,488)
Cumulative amounts applied against depreciation expense for assets placed in service	(703)		—
Cumulative amounts recognized as non-operating income	(7,140)		—
Total deferred grant income	$	21,651	$	23,948

Assets placed in service, gross	$	16,890	$	—
Construction-in-progress	3,909		9,652
Cumulative amounts applied against depreciation expense	(703)		—
Carrying value of property and equipment, net	20,096		9,652
Estimated future operating costs, excluding depreciation	—		2,912
Estimated future capital expenditures	1,555		11,384
Total deferred grant income	$	21,651	$	23,948

Deferred grant income, current	$	3,535	$	2,912
Deferred grant income, non-current	18,116		21,036
Total deferred grant income	$	21,651	$	23,948

Deferred grant income, current is included in other accrued liabilities on the balance sheets at December 31, 2021 and 2020 and represents amounts expected to be applied against costs over the next twelve months. Deferred grant, non-current includes depreciation expense on capital expenditure amounts which will be amortized in later periods. At December 31, 2020, deferred grant income included amounts expected to be applied against 2021 operating costs as well as future depreciation. At December 31, 2021, deferred grant income includes amounts related to future depreciation on capital expenditures placed or to be placed in service.

We expect to spend $22.4 million on capital expenditures associated with the NIH Contract. We have incurred $20.8 million of capital expenditures through December 31, 2021, of which assets valued at $16.9 million have been placed in service, while the remaining $3.9 million is included in construction-in-progress (See Note 8). We expect to place the remaining equipment in service in the first half of 2022.