Related Party Transactions

12 Months Ended

Dec. 31, 2016

13.	Related Party Transactions

Roche Holdings, Inc. and its affiliates

Revenue from Roche was $43,477,000 for the year ended December 31, 2016. Included in the $43,477,000 recognized from Roche during the year ended December 31, 2016 was $19,476,000 from revenue earned under the Molecular Information Platform Program, $12,000,000 in milestones achieved under the ctDNA Platform Development Program, $9,984,000 from the reimbursement of R&D costs under the CDx Development, Immunotherapy Testing Platform Development, and other R&D programs, and $2,017,000 of other Roche-related revenue. Roche-related revenue represented 37% of the Company’s total revenue for the year ended December 31, 2016. Costs of related-party revenue from Roche was $3,770,000 for the year ended December 31, 2016, which consisted of costs incurred under the Molecular Information Platform Program and costs related to the delivery of products outside of the United States under the Ex-U.S. Commercialization Agreement. At December 31, 2016, $2,007,000 and $3,747,000 was included in total accounts receivable and deferred revenue, respectively, related to this arrangement.

Revenue from Roche was $13,444,000 during the year ended December 31, 2015, which primarily consisted of payments made for the reserved capacity arrangement, access to the Company’s molecular information platform, and the reimbursement of R&D costs under the R&D Collaboration Agreement. Roche-related revenue represented 14.4% of the Company’s total revenue in the year ended December 31, 2015. Costs of related party revenue from Roche were $2,736,000 during the year ended December 31, 2015, which consisted of costs incurred under the molecular information platform program within the R&D Collaboration Agreement. Deferred revenue and accounts receivable from Roche were $3,742,000 and $403,000, respectively, for the year ended December 31, 2015.

Revenue from Roche was $858,000 during the year ended December 31, 2014, under a previous contractual relationship between Roche and the Company. Roche-related revenue represented 1.4% of the Company’s total revenue in the year ended December 31, 2014.

There were no other material Roche-related transactions as of December 31, 2016 and 2015 and for each of the years ended December 31, 2016, 2015, and 2014.

Other related party transactions

The Company recognized revenue of $1,631,000, $1,716,000, and $641,000 in the years ended December 31, 2016, 2015, and 2014, respectively from an arrangement with an entity affiliated with a member of the Company’s Board executed in the year ended December 31, 2013. Of these amounts, $0 and $825,000 were included in accounts receivable as of December 31, 2016 and 2015, respectively.