Description of Business

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Description of Business

Note 1. Description of Business

HTG Molecular Diagnostics, Inc. (the “Company”) is a provider of instruments, reagents and services for molecular profiling applications. The Company derives revenue from sales of its HTG EdgeSeq automation system and integrated next-generation sequencing-based HTG EdgeSeq assays, from research services including sample processing and custom research use only (“RUO”) assay design and from collaborative development services.

The Company operates in one segment and its customers are located primarily in the United States and Europe. For the three and nine months ended September 30, 2018 approximately 79% and 77% of the Company’s revenue was generated from sales originated by customers located outside of the United States, compared with 68% and 49% for the three and nine months ended September 30, 2017. The increase in sales originated by customers located outside of the United States is primarily the result of collaborative development services revenue generated from the Master Assay Development, Commercialization and Manufacturing Agreement (the “Governing Agreement”) with QIAGEN Manchester Limited (“QML”), a wholly owned subsidiary of QIAGEN N.V. (see Note 16), which accounted for 92% and 82% of sales to customers located outside of the United States for the three and nine months ended September 30, 2018, compared to 85% and 72% for the three and nine months ended September 30, 2017.