Balance Sheet Components

12 Months Ended

Dec. 31, 2022

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 for the years ended December 31, 2022, 2021 and 2020:

	December 31,		December 31,		December 31,
	2022		2021		2020
	(in thousands)
Beginning balance	$	2,429	$	4,220	$	2,919
Cumulative-effect adjustment upon adoption of ASU 2016-13		—		—		404
Provision for credit losses		1,770		(156)		1,354
Write offs		(369)		(1,635)		(457)
Ending balance	$	3,830	$	2,429	$	4,220

Property and Equipment, net

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

		December 31,		December 31,
	Useful Life	2022		2021
		(in thousands)
Machinery and equipment	3-5 years	$	66,262	$	33,722
Computer equipment	3 years		1,308		4,893
Purchased and capitalized software held for internal use	3 years		5,464		2,395
Leasehold improvements	Lesser of useful life or lease term		29,747		13,640
Construction-in-process			25,370		30,279
			128,151		84,929
Less: Accumulated depreciation and amortization			(35,698)		(19,413)
Total Property and Equipment, net		$	92,453	$	65,516

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

During the years ended December 31, 2022 and 2021, depreciation expense of $16.7 million and $11.3 million was recorded, respectively. There were no material write-offs of fully depreciated assets in the year ended December 31, 2022. During the year ended December 31, 2021, the Company wrote off $41.9 million in fully depreciated assets. The Company did not incur any material impairment charges during the year ended December 31, 2022 or December 31, 2021.

Accrued Compensation

The Company’s accrued compensation consisted of the following:

	December 31,		December 31,
	2022		2021
	(in thousands)
Accrued paid time off	$	2,930	$	2,567
Accrued commissions		11,821		15,726
Accrued bonuses		20,426		15,854
Other accrued compensation		8,833		6,794
Total accrued compensation	$	44,010	$	40,941

Other Accrued Liabilities

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

	December 31,		December 31,
	2022		2021
	(in thousands)
Reserves for refunds to insurance carriers	$	18,948	$	17,210
Accrued charges for third-party testing		17,036		5,849
Testing and laboratory materials from suppliers		13,281		3,799
Marketing and corporate affairs		8,943		7,853
Legal, audit and consulting fees		36,710		11,758
Accrued shipping charges		485		969
Sales and income taxes payable		4,319		2,230
Accrued third-party service fees		6,631		13,442
Clinical trials and studies		23,301		11,218
Operating lease liabilities, current portion		7,639		5,752
Property and equipment purchases		1,821		1,853
Other accrued interest		1,078		1,078
Other accrued expenses		4,022		10,342
Total other accrued liabilities	$	144,214	$	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 and if these previously accrued amounts are no longer required based on actual refunds requested, any remaining reserve amounts are released. 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 years ended December 31, 2022 and 2021:

	December 31,		December 31,
	2022		2021
	(in thousands)
Beginning balance	$	17,210	$	17,366
Additional reserves		23,718		16,340
Refunds to carriers		(14,558)		(10,784)
Reserves released to revenue		(7,422)		(5,712)
Ending balance	$	18,948	$	17,210