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Debt, Commitments and Contingencies
9 Months Ended
Sep. 30, 2021
Debt Commitments And Contingencies Disclosure [Abstract]  
Debt, Commitments and Contingencies

Note 8. Debt, Commitments and Contingencies

 

Debt

As of September 30, 2021, the Company had an outstanding borrowing of $15.1 million under its margin account with the custodian of the Company’s marketable debt security investment account, Pershing Advisor Solutions, LLC, a BNY Mellon Company. Margin account borrowings were used for the purchase of real property located in El Monte, California in 2020. The securities in the brokerage account were used as collateral for the margin loan. The custodian can issue a margin call at any time. The interest rate on the margin loan was the effective federal funds rate, or EFFR, plus a spread, and the EFFR and/or the spread can be changed by BNY Mellon at any time. The interest was 1% at the time of withdrawal of $15.0 million from the margin account, and the interest rate at September 30, 2021 was less than 1.0%. The Company did not make any other withdrawals from the margin account, and the outstanding balance of $15.1 million is included in the accompanying Condensed Consolidated Balance Sheets. The related interest expenses for the three and nine months ended September 30, 2021 were $30,000 and $88,000, respectively. There were no related interest expenses for the three and nine months ended September 30, 2020.

Notes payable as of September 30, 2021 consisted of $5.9 million of notes payable to Xilong Scientific Co., Ltd., or Xilong Scientific, by Fujian Fujun Gene Biotech Co., Ltd., or FF Gene Biotech, as defined in Note 14, Business Combination. The loan is payable on December 31, 2022 and interest rate on the loan is 4.97%. The related interest expenses for the three and nine months ended September 30, 2021 were $74,000.

Operating Leases

See Note 9, Leases, for further information.

Purchase Obligations

As of September 30, 2021, the Company had non-cancelable purchase obligations of $13.8 million, of which, $10.4 million for reagents and other supplies, $3.0 million for medical lab equipment, and $373,000 for medical lab furniture are payable within twelve months.

Contingencies

From time to time, the Company may be subject to legal proceedings and claims arising in the ordinary course of business. In the opinion of management, the outcome of these matters would not have a material effect on the Company’s condensed consolidated financial position, results of operations or cash flows.