Balance Sheet Components

12 Months Ended

Dec. 31, 2024

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, 2024, 2023 and 2022:

	December 31,
	2024		2023		2022
	(in thousands)
Beginning balance	$	6,481	$	3,830	$	2,429
Provision for doubtful accounts		1,279		2,645		1,770
(Write-offs) / Recoveries		(501)		6		(369)
Total	$	7,259	$	6,481	$	3,830

Property and Equipment, net

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

		December 31,		December 31,
	Useful Life	2024		2023
		(in thousands)
Machinery and equipment	3-5 years	$	117,076	$	85,626
Computer equipment	3 years		3,178		1,850
Purchased and capitalized software held for internal use	3 years		13,178		11,636
Leasehold improvements	Lesser of useful life or lease term		48,569		38,999
Construction-in-process			58,461		29,392
			240,462		167,503
Less: Accumulated depreciation and amortization			(78,416)		(56,293)
Total Property and Equipment, net		$	162,046	$	111,210

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

During the year ended December 31, 2024, 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. During the years ended December 31, 2024, 2023, and 2022, depreciation expense of $27.2 million, $22.7 million, $16.7 million was recorded, respectively. The Company did not incur any material impairment charges during the years ended December 31, 2024, 2023, and 2022.

As of December 31, 2024 and 2023, the Company’s consolidated balance sheets included $9.1 million and $8.4 million, respectively, of capitalized cloud-based implementation costs. Accumulated amortization associated with these assets was $5.3 million and $2.5 million as of December 31, 2024 and 2023, respectively. The net book value of these capitalized cloud-based implementation was $3.7 million and $5.9 million, for the years ended December 31, 2024 and 2023, respectively and are recorded in current assets and other assets within the Company's consolidated balance sheets depending on the anticipated amortization period. During the years ended December 31, 2024, 2023, and 2022, the Company recorded amortization expense of $2.8 million, $1.4 million and $0.8 million, respectively.

Accrued Compensation

The Company’s accrued compensation consisted of the following:

	December 31,		December 31,
	2024		2023
	(in thousands)
Accrued paid time off	$	3,826	$	3,121
Accrued commissions		14,224		10,522
Accrued bonuses		32,236		24,651
Other accrued compensation		11,828		7,563
Total accrued compensation	$	62,114	$	45,857

Other Accrued Liabilities

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

	December 31,		December 31,
	2024		2023
	(in thousands)
Reserves for refunds to insurance carriers	$	11,276	$	23,245
Accrued charges for third-party testing		12,321		14,823
Testing and laboratory materials from suppliers		7,893		11,229
Marketing and corporate affairs		16,548		10,085
Legal, audit and consulting fees		54,208		43,897
Accrued shipping charges		1,625		3,646
Sales and income tax payable		4,416		3,731
Accrued third-party service fees		9,046		7,111
Clinical trials and studies		10,097		12,126
Operating lease liabilities, current portion		10,168		11,621
Property and equipment purchases		7,098		4,316
Other accrued interest		—		1,078
Other accrued expenses		2,197		2,497
Total other accrued liabilities	$	146,893	$	149,405

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, 2024 and 2023:

	December 31,		December 31,
	2024		2023
	(in thousands)
Beginning balance	$	23,245	$	18,948
Additional reserves		2,562		14,974
Refunds to carriers		(4,620)		(1,583)
Reserves released to revenue		(9,911)		(9,094)
Ending balance	$	11,276	$	23,245