Balance Sheet Components

9 Months Ended

Sep. 30, 2025

Balance Sheet Components

Balance Sheet Components

6. Balance Sheet Components

Allowance for Expected Credit Losses

The following is a roll-forward of the allowances for expected credit losses related to trade accounts receivable for the three and nine months ended September 30, 2025 and 2024:

	Three Months Ended
	September 30,
	2025		2024
		(in thousands)
Beginning balance	$	7,823	$	7,021
Provision for (Reversal of) expected credit losses		626		(536)
Write-offs		(30)		(233)
Total	$	8,419	$	6,252

	Nine Months Ended
	September 30,
	2025		2024
		(in thousands)
Beginning balance	$	7,259	$	6,481
Provision for expected credit losses		1,232		208
Write-offs		(72)		(437)
Total	$	8,419	$	6,252

Property and Equipment, net

The Company’s property and equipment consists of the following:

		September 30,		December 31,
	Useful Life	2025		2024
		(in thousands)
Machinery and equipment	3-5 years	$	153,483	$	117,076
Computer equipment	3 years		3,439		3,178
Purchased and capitalized software held for internal use	3 years		17,574		13,178
Leasehold improvements	Lesser of useful life or lease term		49,232		48,569
Construction-in-process			83,658		58,461
			307,386		240,462
Less: Accumulated depreciation and amortization			(100,890)		(78,416)
Total property and equipment, net		$	206,496	$	162,046

The Company’s long-lived assets are located in the United States.

The Company did not incur any impairment charges during the nine months ended September 30, 2025 or 2024. Depreciation expense for the nine months ended September 30, 2025 and 2024 was $26.4 million and $19.9 million, respectively.

Other Assets

In the third quarter of 2025, the Company entered into a binding agreement with a third-party to obtain a non-exclusive, fully paid-up license to specified intangible assets. The $30.0 million license has been recorded within Other assets on the condensed consolidated balance sheet.

The intangible asset is being amortized on a straight-line basis over an estimated 6.5 years useful life and will be evaluated for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable.

As of September 30, 2025, the Company has paid $12.5 million related to this license. The remaining balance is expected to be paid in accordance with the terms of the agreement.

Other Accrued Liabilities

The Company’s other accrued liabilities consisted of the following:

	September 30,		December 31,
	2025		2024
	(in thousands)
Reserves for refunds to insurance carriers	$	10,113	$	11,276
Accrued charges for third-party testing		13,590		12,321
Testing and laboratory materials from suppliers		13,345		7,893
Marketing and corporate affairs		22,298		16,548
Legal, audit and consulting fees		83,687		54,208
Accrued for acquisition of intangible assets		17,500		—
Accrued shipping charges		930		1,625
Sales and income tax payable		7,158		4,416
Accrued third-party service fees		9,833		9,046
Clinical trials and studies		15,072		10,097
Operating lease liabilities, current portion		14,006		10,168
Property and equipment purchases		6,313		7,098
Other accrued expenses		2,106		2,197
Total other accrued liabilities	$	215,951	$	146,893

The following table summarizes the reserve balance and activities for refunds to insurance carriers for the nine months ending September 30, 2025 and 2024:

	September 30,
	2025		2024
	(in thousands)
Beginning balance	$	11,276	$	23,245
Additional (reversals) reserves		(107)		1,506
Refunds to carriers		—		(3,095)
Reserves released to revenue		(1,056)		(5,878)
Ending balance	$	10,113	$	15,778