Balance Sheet Components

12 Months Ended

Dec. 31, 2021

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 current assets for the years ended December 31, 2021, 2020 and 2019:

	December 31,		December 31,		December 31,
	2021		2020		2019
	(in thousands)
Beginning balance	$	4,220	$	2,919	$	1,788
Cumulative-effect adjustment upon adoption of ASU 2016-13		—		404		—
Provision for credit losses		(156)		1,354		1,141
Write offs		(1,635)		(457)		(10)
Ending balance	$	2,429	$	4,220	$	2,919

Property and Equipment, net

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

		December 31,		December 31,
	Useful Life	2021		2020
		(in thousands)
Machinery and equipment	3-5 years	$	33,722	$	51,001
Furniture and fixtures	3 years		—		1,376
Computer equipment	3 years		4,893		2,428
Capitalized software held for internal use	3 years		2,395		7,417
Leasehold improvements	Life of lease		13,640		14,810
Construction-in-process			30,279		6,370
			84,929		83,402
Less: Accumulated depreciation and amortization			(19,413)		(50,054)
Total Property and Equipment, net		$	65,516	$	33,348

The Company’s property and equipment are primarily located in the United States.

During the year ended December 31, 2021, the increase in net property and equipment was due to purchases of new equipment for the Company’s laboratories located in Texas and California to expand testing capabilities, offset by depreciation expense of $11.3 million recorded in the year ended December 31, 2021. During the year ended December 31, 2021, the Company has written off $41.9 million in fully depreciated assets. The Company did not incur an impairment charge during the year ended December 31, 2021.

Accrued Compensation

The Company’s accrued compensation consisted of the following:

	December 31,		December 31,
	2021		2020
	(in thousands)
Accrued paid time off	$	2,567	$	2,260
Accrued commissions		15,726		12,686
Accrued bonuses		15,854		9,635
Other accrued compensation		6,794		5,790
Total accrued compensation	$	40,941	$	30,371

Other Accrued Liabilities

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

	December 31,		December 31,
	2021		2020
	(in thousands)
Reserves for refunds to insurance carriers	$	17,210	$	17,366
Accrued charges for third-party testing		5,849		5,141
Testing and laboratory materials from suppliers		3,799		2,720
Marketing and corporate affairs		7,853		3,325
Legal, audit and consulting fees		11,758		4,189
Accrued shipping charges		969		1,604
Sales tax payable		2,230		1,723
Accrued third-party service fees		13,442		2,355
Clinical trials, studies, and other development		11,218		2,353
Operating lease liabilities, current portion		5,752		7,300
Fixed asset purchases		1,853		1,691
Other accrued interest		1,078		1,078
Other accrued expenses		10,342		9,562
Total other accrued liabilities	$	93,353	$	60,407

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, 2021:

	December 31,		December 31,
	2021		2020
	(in thousands)
Beginning balance	$	17,366	$	9,410
Additional reserves		16,340		19,427
Refunds to carriers		(10,784)		(6,066)
Reserves released to revenue		(5,712)		(5,405)
Ending balance	$	17,210	$	17,366