Balance Sheet Components

12 Months Ended

Dec. 31, 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 years ended December 31, 2023, 2022 and 2021:

	December 31,
	2023		2022		2021
	(in thousands)
Beginning balance	$	3,830	$	2,429	$	4,220
Provision for doubtful accounts		2,645		1,770		(156)
Write-offs		6		(369)		(1,635)
Total	$	6,481	$	3,830	$	2,429

Property and Equipment, net

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

		December 31,		December 31,
	Useful Life	2023		2022
		(in thousands)
Machinery and equipment	3-5 years	$	85,626	$	66,262
Computer equipment	3 years		1,850		1,308
Purchased and capitalized software held for internal use	3 years		11,636		5,464
Leasehold improvements	Lesser of useful life or lease term		38,999		29,747
Construction-in-process			29,392		25,370
			167,503		128,151
Less: Accumulated depreciation and amortization			(56,293)		(35,698)
Total Property and Equipment, net		$	111,210	$	92,453

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

During the years ended December 31, 2023, 2022, and 2021, depreciation expense of $22.7 million, $16.7 million, $11.3 million was recorded, respectively. The Company did not incur any material impairment charges during the years ended December 31, 2023, 2022, and 2021.

As of December 31, 2023, 2022, and 2021, the Company’s consolidated balance sheets included $5.5 million, $4.7 million, and $3.5 million, respectively, of capitalized cloud-based implementation costs recorded as other assets within the Company’s consolidated balance sheets. These balances primarily consist of capitalized implementation costs

related to the enterprise resource planning system which the Company implemented in 2022. Accumulated amortization associated with these assets was $2.5 million, $0.9 million, and $1.5 million as of December 31, 2023, 2022, and 2021, respectively. The net book value of these capitalized cloud-based implementation was $3.0 million, $3.8 million, and $2.1 million for the years ended December 31, 2023, 2022, and 2021, respectively.

Accrued Compensation

The Company’s accrued compensation consisted of the following:

	December 31,		December 31,
	2023		2022
	(in thousands)
Accrued paid time off	$	3,121	$	2,930
Accrued commissions		10,522		11,821
Accrued bonuses		24,651		20,426
Other accrued compensation		7,563		8,833
Total accrued compensation	$	45,857	$	44,010

Other Accrued Liabilities

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

	December 31,		December 31,
	2023		2022
	(in thousands)
Reserves for refunds to insurance carriers	$	23,245	$	18,948
Accrued charges for third-party testing		14,823		17,036
Testing and laboratory materials from suppliers		11,229		13,281
Marketing and corporate affairs		10,085		8,943
Legal, audit and consulting fees		43,897		36,710
Accrued shipping charges		3,646		485
Sales and income tax payable		3,731		4,319
Accrued third-party service fees		7,111		6,631
Clinical trials and studies		12,126		23,301
Operating lease liabilities, current portion		11,621		7,639
Property and equipment purchases		4,316		1,821
Other accrued interest		1,078		1,078
Other accrued expenses		2,497		4,022
Total other accrued liabilities	$	149,405	$	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 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, 2023 and 2022:

	December 31,		December 31,
	2023		2022
	(in thousands)
Beginning balance	$	18,948	$	17,210
Additional reserves		14,974		23,717
Refunds to carriers		(1,583)		(1,800)
Reserves released to revenue		(9,094)		(20,179)
Ending balance	$	23,245	$	18,948