Balance Sheet Components

3 Months Ended

Mar. 31, 2022

Balance Sheet Components

Balance Sheet Components

6. Balance Sheet Components

Property and Equipment, net

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

		March 31,		December 31,
	Useful Life	2022		2021
		(in thousands)
Machinery and equipment	3-5 years	$	38,073	$	33,722
Computer equipment	3 years		4,893		4,893
Capitalized software held for internal use	3 years		3,112		2,395
Leasehold improvements	Lesser of useful life or lease term		26,647		13,640
Construction-in-process			28,051		30,279
			100,776		84,929
Less: Accumulated depreciation and amortization			(22,415)		(19,413)
Total Property and Equipment, net		$	78,361	$	65,516

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

During the three months ended March 31, 2022, 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 $3.0 million recorded in the three months ended March 31, 2022, compared to a depreciation expense of $2.5 million recorded in the three months ended March 31, 2021. The Company did not incur an impairment charge during the three months ended March 31, 2022.

Accrued Compensation

The Company’s accrued compensation consisted of the following:

	March 31,		December 31,
	2022		2021
	(in thousands)
Accrued paid time off	$	2,809	$	2,567
Accrued commissions		12,305		15,726
Accrued bonuses		6,826		15,854
Other accrued compensation		10,456		6,794
Total accrued compensation	$	32,396	$	40,941

Other Accrued Liabilities

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

	March 31,		December 31,
	2022		2021
	(in thousands)
Reserves for refunds to insurance carriers	$	17,326	$	17,210
Accrued charges for third-party testing		5,445		5,849
Testing and laboratory materials from suppliers		5,561		3,799
Marketing and corporate affairs		7,563		7,853
Legal, audit and consulting fees		18,645		11,758
Accrued shipping charges		4,792		969
Sales tax payable		788		2,230
Accrued third-party service fees		14,483		13,442
Clinical trials and studies		17,835		11,218
Operating lease liabilities, current portion		5,239		5,752
Fixed asset purchases		5,370		1,853
Other accrued interest		2,695		1,078
Other accrued expenses		10,895		10,342
Total other accrued liabilities	$	116,637	$	93,353

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 condensed statements of operations and comprehensive loss.

The following table summarizes the reserve balance and activities for refunds to insurance carriers for the three months ended March 31, 2022 and 2021:

	March 31,		March 31,
	2022		2021
	(in thousands)
Beginning balance	$	17,210	$	17,366
Additional reserves		3,502		5,594
Refunds to carriers		(1,991)		(1,403)
Reserves released to revenue		(1,395)		(1,253)
Ending balance	$	17,326	$	20,304