6. Balance Sheet Components

Property and Equipment, net

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


		March 31,		December 31,
	Useful Life	2018		2017
		(in thousands)
Machinery and equipment	3-5 years	$	32,022	$	31,825
Furniture and fixtures	3 years		1,265		1,216
Computer equipment	3 years		2,028		1,958
Capitalized software held for internal use	3 years		4,465		4,465
Leasehold improvements	Lesser of useful life or lease term		10,745		10,691
Construction-in-process			5,198		6,497
			55,723		56,652
Less: Accumulated depreciation and amortization			(28,845)		(26,985)
Total Property and Equipment, net		$	26,878	$	29,667

During the three months ended March 31, 2018, an asset impairment charge of $1.6 million was recorded in research and development expenses in the statements of operations and comprehensive loss. This charge was recorded to write off the project development costs that were previously capitalized.

Other Assets

In April 2016, the Company entered into a four-year agreement with a health insurance carrier whereby in return for partial exclusivity and the right to pricing benefits the Company agreed to pay total consideration of $3.2 million. The total consideration was paid in the third quarter of 2016. As of March 31, 2018 and December 31, 2017, $1.6 million and $1.8 million of deferred costs related to the total consideration paid were included in other long-term assets, respectively. The deferred costs are being amortized ratably over the four-year term of the agreement and for the three months ended March 31, 2018, the Company amortized $0.2 million of such costs, which was recorded as a reduction of product revenues in the statements of operations and comprehensive loss.

In August 2017, the Company entered into the 2017 Term Loan with OrbiMed and issued 300,000 shares of its common stock in exchange for OrbiMed’s initial and remaining funding commitments (as described in Note 9). The Company also paid legal fees totaling $0.3 million in connection with this term loan. Total debt issuance costs of $2.7 million is accounted for as a debt discount. For financial statement presentation purposes, the Company has classified $2.0 million of the debt discount as a direct reduction from the outstanding debt balance, while $0.7 million of such remains in noncurrent assets for the unused borrowing capacity of $25.0 million. The debt discount is being amortized on a straight-line basis over the term of the loan. For the three months ended March 31, 2018, amortization of the debt discount was insignificant. As of March 31, 2018, total unamortized debt discount was $0.6 million.

Accrued Compensation

The Company’s accrued compensation consisted of the following:


	March 31,		December 31,
	2018		2017
	(in thousands)
Accrued paid time off	$	1,808	$	1,806
Accrued commissions		3,365		3,558
Accrued bonuses		1,433		2,063
Other accrued compensation		3,327		2,172
Total accrued compensation	$	9,933	$	9,599

Other Accrued Liabilities

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


	March 31,		December 31,
	2018		2017
(Amounts in thousands)			(As Revised)
Settlement accrued for reimbursement related claims	$	6,074	$	10,062
Reserves for refunds to insurance carriers		7,071		6,794
Accrued charges for third party test fees		7,301		6,566
Testing and laboratory materials from suppliers		1,653		1,367
Marketing and corporate affairs		1,223		1,456
Legal, audit and consulting fees		913		206
Accrued shipping charges		482		198
Sales tax payable		947		504
Accrued specimen service fees		1,026		683
Accrued rent		868		856
Clinical trials and studies		557		483
Other accrued expenses		3,408		4,082
Total other accrued liabilities	$	31,523	$	33,257

As of December 31, 2017, the Company accrued a total of $11.4 million for amounts due under a settlement agreement related to reimbursement related claims, of which $10.1 million was the current portion and $1.3 million was recorded in other long-term liabilities. As of March 31, 2018, the Company had reclassified the noncurrent portion of the $1.3 million to other current liabilities. The Company was allowed to make four equal installments, and the first installment of approximately $5.3 million had been paid as of March 31, 2018.

During the three months ended March 31, 2018, the Company reserved approximately $1.2 million for refunds to insurance carriers. Amounts totaling $0.9 million previously held in reserves from payers were released and recognized as product revenues in the statements of operations and comprehensive loss. Amounts reserved totaled $7.1 million as of March 31, 2018 and December 31, 2017.