Balance Sheet Components

12 Months Ended

Dec. 31, 2020

Balance Sheet Components

Balance Sheet Components

6.    Balance Sheet Components

Credit Losses

The following is a roll-forward of the allowances for credit losses related to trade accounts receivable and other receivables for the years ended December 31, 2020, 2019, and 2018:

	December 31,		December 31,		December 31,
	2020		2019		2018
	(in thousands)
Beginning balance	$	2,919	$	1,788	$	2,000
Cumulative-effect adjustment upon adoption of ASU 2016-13		404		—		—
Provision for credit losses		1,354		1,141		(41)
Write offs		(457)		(10)		(171)
Ending balance	$	4,220	$	2,919	$	1,788

Property and Equipment, net

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

		December 31,		December 31,
	Useful Life	2020		2019
		(in thousands)
Machinery and equipment	3-5 years	$	51,001	$	36,414
Furniture and fixtures	3 years		1,376		1,376
Computer equipment	3 years		2,428		1,828
Capitalized software held for internal use	3 years		7,417		5,917
Leasehold improvements	Life of lease		14,810		11,556
Construction-in-process			6,370		7,716
			83,402		64,807
Less: Accumulated depreciation and amortization			(50,054)		(41,524)
Total Property and Equipment, net		$	33,348	$	23,283

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

Other Assets

In August 2017, the Company entered into the 2017 Term Loan with OrbiMed (as described in Note 10, Debt) and issued 300,000 shares of its common stock in exchange for OrbiMed’s initial and remaining funding commitments. In April 2019, the Company issued an additional 25,000 shares of its common stock to OrbiMed for extending the expiration date to draw the unused borrowing capacity until December 31, 2019. The Company previously classified $1.2 million out of the total debt issuance costs in noncurrent assets for the unused borrowing capacity of $50.0 million. The debt discount was amortized on a straight-line basis over the remaining term of the loan. Since the option to draw the unused borrowing capacity has expired as of December 31, 2019, the Company reclassed $0.9 million, the unamortized portion of debt issuance cost previously classified in noncurrent assets, to long-term debt financing. Subsequently, the debt was extinguished (See Note 10, Debt) and accordingly, as of December 31, 2020, total unamortized remaining in noncurrent assets was zero. Additionally, as of December 31, 2020, other assets also included long-term advances to BGI Genomics of $10.0 million for future sequencing equipment and services.

Accrued Compensation

The Company’s accrued compensation consisted of the following:

	December 31,		December 31,
	2020		2019
	(in thousands)
Accrued paid time off	$	2,260	$	1,850
Accrued commissions		12,686		5,767
Accrued bonuses		9,635		5,710
Other accrued compensation		5,790		2,761
Total accrued compensation	$	30,371	$	16,088

Other Accrued Liabilities

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

	December 31,		December 31,
	2020		2019
	(in thousands)
Reserves for refunds to insurance carriers	$	17,366	$	9,410
Accrued charges for third-party testing		5,141		8,408
Testing and laboratory materials from suppliers		2,720		4,301
Marketing and corporate affairs		3,325		2,957
Legal, audit and consulting fees		4,189		2,873
Accrued shipping charges		1,604		305
Sales tax payable		1,723		1,691
Accrued specimen service fees		2,355		2,269
Clinical trials and studies		2,353		1,092
Operating lease liabilities, current portion		7,300		5,739
Fixed asset purchases		1,691		1,482
Other accrued interest		1,078		—
Other accrued expenses		9,562		8,516
Total other accrued liabilities	$	60,407	$	49,043

Reserves for refunds to insurance carriers include overpayments from and amounts to be refunded to insurance carriers, and additional amounts that the Company estimates for potential refund requests during the period. When the Company releases these previously accrued amounts, they are recognized as product revenues in the statements of operations and comprehensive loss.

The following table summarizes the reserve balance and activities for refunds to insurance carriers for the year ended December 31, 2020:

	December 31,		December 31,
	2020		2019
	(in thousands)
Beginning balance	$	9,410	$	10,012
Additional reserves		19,427		9,560
Refunds to carriers		(6,066)		(7,752)
Reserves released to revenue		(5,405)		(2,410)
Ending balance	$	17,366	$	9,410