Balance Sheet Components

9 Months Ended

Sep. 30, 2023

Balance Sheet Components

Balance Sheet Components

6. Balance Sheet Components

Allowance for doubtful accounts

The following is a roll-forward of the allowances for doubtful accounts related to trade accounts receivable for the three and nine months ended September 30, 2023 and 2022:

	Three Months Ended
	September 30,
	2023			2022
		(in thousands)
Beginning balance	$	5,580	$	3,561
Provision for doubtful accounts		454		1,115
Total	$	6,034	$	4,676

	Nine Months Ended
	September 30,
	2023		2022
		(in thousands)
Beginning balance	$	3,830	$	2,429
Provision for doubtful accounts		2,204		2,615
Write-offs		—		(368)
Total	$	6,034	$	4,676

Property and Equipment, net

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

		September 30,		December 31,
	Useful Life	2023		2022
		(in thousands)
Machinery and equipment	3-5 years	$	83,481	$	66,262
Computer equipment	3 years		1,812		1,308
Purchased and capitalized software held for internal use	3 years		10,275		5,464
Leasehold improvements	Lesser of useful life or lease term		39,000		29,747
Construction-in-process			20,845		25,370
			155,413		128,151
Less: Accumulated depreciation and amortization			(50,583)		(35,698)
Total Property and Equipment, net		$	104,830	$	92,453

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

During the nine months ended September 30, 2023, the increase in net property and equipment was due to expansion projects and purchases of new equipment for the Company’s laboratories located in Texas and California to expand testing capabilities, offset by depreciation expense of $16.1 million recorded in the nine months ended September 30, 2023. Depreciation expense of $12.2 million was recorded in the nine months ended September 30, 2022. The Company did not incur any impairment charges during the nine months ended September 30, 2023.

Other Accrued Liabilities

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

	September 30,		December 31,
	2023		2022
	(in thousands)
Reserves for refunds to insurance carriers	$	16,209	$	18,948
Accrued charges for third-party testing		10,960		17,036
Testing and laboratory materials from suppliers		19,902		13,281
Marketing and corporate affairs		8,752		8,943
Legal, audit and consulting fees		35,822		36,710
Accrued shipping charges		1,203		485
Sales and income tax payable		5,715		4,319
Accrued third-party service fees		6,865		6,631
Clinical trials and studies		11,056		23,301
Operating lease liabilities, current portion		11,038		7,639
Property and equipment purchases		1,617		1,821
Other accrued interest		2,695		1,078
Other accrued expenses		1,906		4,022
Total other accrued liabilities	$	133,740	$	144,214

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 nine months ending September 30, 2023 and 2022:

	September 30,		September 30,
	2023		2022
	(in thousands)
Beginning balance	$	18,948	$	17,210
Additional reserves		7,348		15,665
Refunds to carriers		(1,236)		(990)
Reserves released to revenue		(8,851)		(13,947)
Ending balance	$	16,209	$	17,938