Leases

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Leases

Leases

The Company’s leases primarily consist of office and lab space, and equipment for use in its operations. Its leases generally have lease agreements which expire in 2026 to 2036, some with the option to extend. The Company includes extension options that are reasonably certain to be exercised as part of the lease terms. As of December 31, 2024, none of the Company’s lease terms included the extension option as the Company has determined that it is unlikely to exercise the extension option.

Operating Leases

The Company’s primary operating lease arrangements include leased properties for its corporate office and headquarters located in Stamford, Connecticut, its primary operating laboratory located in Gaithersburg, Maryland, and a satellite meeting space located in New York City. The lease agreements for these properties expire in 2034, 2031, and 2026, respectively.

The Company’s operating leases also include laboratories in Branford, Connecticut and Stamford, Connecticut, which as previously disclosed, have ceased operations as part of the Company’s announced exits in 2022 from reproductive health and somatic tumor testing. The lease agreements for these properties expire in 2030 and 2036, respectively. These facilities as well as a portion of its headquarters located in Stamford, Connecticut are actively being marketed for sublet; however, the outstanding lease obligations remain obligations. At inception of the lease for the laboratory in Stamford, Connecticut, the value of the land was determined to be more than 25% of the total value and therefore the building is accounted for as a finance lease and the land as an operating lease.

Finance Leases

In addition to its leased laboratory building in Stamford, Connecticut noted above, the Company routinely enters into various finance lease agreements to obtain laboratory equipment that contain bargain purchase commitments at the end of the lease term. The leases are secured by the underlying equipment.

The tables below present financial information associated with the Company’s operating and finance leases as of, and for the year ended, December 31, 2024 and 2023:

		December 31,
	Classification	2024		2023
Assets
Operating lease assets	Operating lease right-of-use assets	$	25,613	$	26,900
Finance lease assets	Property and Equipment, net	3,173		3,440
Total lease assets		$	28,786	$	30,340
Liabilities
Current
Operating	Short-term lease liabilities	$	2,608	$	2,331
Finance	Short-term lease liabilities	728		1,316
Non-current
Operating	Long-term lease liabilities	$	42,698	$	44,428
Finance	Long-term lease liabilities	18,221		18,510
Total lease liabilities		$	64,255	$	66,585

	Year ended December 31,
Lease cost	2024		2023
Operating lease cost
Operating lease cost	$	5,637	$	5,806
Short-term lease cost	314		745
Variable lease cost	1,140		659
Total operating lease cost	$	7,091	$	7,210
Finance lease cost
Depreciation and amortization of leased assets	$	647	$	1,970
Interest on lease liabilities	1,460		1,041
Total finance lease cost	$	2,107	$	3,011
Total lease cost	$	9,198	$	10,221

Future minimum lease payments under non-cancellable leases as of December 31, 2024 are as follows:

Maturity of lease liabilities	Operating lease		Finance lease		Total
2025	$	6,201	$	2,670	$	8,871
2026	6,292		2,003		8,295
2027	6,263		2,045		8,308
2028	6,447		2,107		8,554
2029	6,601		2,170		8,771
Thereafter	30,539		20,877		51,416
Total	62,343		31,872		$	94,215
Less: imputed interest	(17,037)		(12,923)		(29,960)
Present value of lease liabilities	$	45,306	$	18,949	$	64,255

Other information related to leases as of and for the year ended December 31, 2024 and 2023 and are as follows:

	December 31,
	2024		2023
Weighted-average remaining lease term (years)
Operating leases	9.0		10.0
Finance leases	11.4		11.8
Weighted-average discount rate
Operating leases	6.4%		6.4%
Finance leases	8.4%		8.1%
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	5,231	$	5,482
Operating cash flows from finance leases	3,029		1,874
Financing cash flows from finance lease	2,728		3,598

Leases

Leases

The Company’s leases primarily consist of office and lab space, and equipment for use in its operations. Its leases generally have lease agreements which expire in 2026 to 2036, some with the option to extend. The Company includes extension options that are reasonably certain to be exercised as part of the lease terms. As of December 31, 2024, none of the Company’s lease terms included the extension option as the Company has determined that it is unlikely to exercise the extension option.

Operating Leases

The Company’s primary operating lease arrangements include leased properties for its corporate office and headquarters located in Stamford, Connecticut, its primary operating laboratory located in Gaithersburg, Maryland, and a satellite meeting space located in New York City. The lease agreements for these properties expire in 2034, 2031, and 2026, respectively.

The Company’s operating leases also include laboratories in Branford, Connecticut and Stamford, Connecticut, which as previously disclosed, have ceased operations as part of the Company’s announced exits in 2022 from reproductive health and somatic tumor testing. The lease agreements for these properties expire in 2030 and 2036, respectively. These facilities as well as a portion of its headquarters located in Stamford, Connecticut are actively being marketed for sublet; however, the outstanding lease obligations remain obligations. At inception of the lease for the laboratory in Stamford, Connecticut, the value of the land was determined to be more than 25% of the total value and therefore the building is accounted for as a finance lease and the land as an operating lease.

Finance Leases

In addition to its leased laboratory building in Stamford, Connecticut noted above, the Company routinely enters into various finance lease agreements to obtain laboratory equipment that contain bargain purchase commitments at the end of the lease term. The leases are secured by the underlying equipment.

The tables below present financial information associated with the Company’s operating and finance leases as of, and for the year ended, December 31, 2024 and 2023:

		December 31,
	Classification	2024		2023
Assets
Operating lease assets	Operating lease right-of-use assets	$	25,613	$	26,900
Finance lease assets	Property and Equipment, net	3,173		3,440
Total lease assets		$	28,786	$	30,340
Liabilities
Current
Operating	Short-term lease liabilities	$	2,608	$	2,331
Finance	Short-term lease liabilities	728		1,316
Non-current
Operating	Long-term lease liabilities	$	42,698	$	44,428
Finance	Long-term lease liabilities	18,221		18,510
Total lease liabilities		$	64,255	$	66,585

	Year ended December 31,
Lease cost	2024		2023
Operating lease cost
Operating lease cost	$	5,637	$	5,806
Short-term lease cost	314		745
Variable lease cost	1,140		659
Total operating lease cost	$	7,091	$	7,210
Finance lease cost
Depreciation and amortization of leased assets	$	647	$	1,970
Interest on lease liabilities	1,460		1,041
Total finance lease cost	$	2,107	$	3,011
Total lease cost	$	9,198	$	10,221

Future minimum lease payments under non-cancellable leases as of December 31, 2024 are as follows:

Maturity of lease liabilities	Operating lease		Finance lease		Total
2025	$	6,201	$	2,670	$	8,871
2026	6,292		2,003		8,295
2027	6,263		2,045		8,308
2028	6,447		2,107		8,554
2029	6,601		2,170		8,771
Thereafter	30,539		20,877		51,416
Total	62,343		31,872		$	94,215
Less: imputed interest	(17,037)		(12,923)		(29,960)
Present value of lease liabilities	$	45,306	$	18,949	$	64,255

Other information related to leases as of and for the year ended December 31, 2024 and 2023 and are as follows:

	December 31,
	2024		2023
Weighted-average remaining lease term (years)
Operating leases	9.0		10.0
Finance leases	11.4		11.8
Weighted-average discount rate
Operating leases	6.4%		6.4%
Finance leases	8.4%		8.1%
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	5,231	$	5,482
Operating cash flows from finance leases	3,029		1,874
Financing cash flows from finance lease	2,728		3,598