Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 28, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity Registrant Name | Quanterix Corp | ||
Entity File Number | 001-38319 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-8957988 | ||
Entity Address, Address Line One | 900 Middlesex Turnpike | ||
Entity Address, City or Town | Billerica | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 01821 | ||
City Area Code | 617 | ||
Local Phone Number | 301-9400 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 558 | ||
Entity Common Stock, Shares Outstanding | 37,248,605 | ||
Entity Central Index Key | 0001503274 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Firm ID | 42 | ||
Auditor Location | Boston, Massachusetts |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 338,740 | $ 396,465 |
Accounts receivable (less allowance for credit losses of $118 and $419 as of December 31, 2022 and December 31, 2021, respectively; including $89 and $200 due from related parties as of December 31, 2022 and December 31, 2021, respectively) | 19,017 | 23,786 |
Inventory | 16,786 | 22,190 |
Prepaid expenses and other current assets | 6,860 | 6,514 |
Total current assets | 381,403 | 448,955 |
Restricted cash | 2,597 | 2,577 |
Property and equipment, net | 20,162 | 17,960 |
Intangible assets, net | 7,516 | 10,534 |
Goodwill | 9,632 | |
Right-of-use assets | 21,223 | 11,491 |
Other non-current assets | 1,298 | 378 |
Total assets | 434,199 | 501,527 |
Current liabilities: | ||
Accounts payable (including $0 and $42 to related parties as of December 31, 2022 and December 31, 2021, respectively) | 3,836 | 9,209 |
Accrued compensation and benefits | 10,658 | 13,252 |
Other accrued expenses | 4,747 | 6,486 |
Deferred revenue (including $69 and $54 with related parties as of December 31, 2022 and December 31, 2021, respectively) | 8,644 | 6,361 |
Short term lease liabilities | 2,687 | 1,428 |
Other current liabilities | 386 | 241 |
Total current liabilities | 30,958 | 36,977 |
Deferred revenue, net of current portion | 1,415 | 1,099 |
Long term lease liabilities | 41,417 | 20,464 |
Other non-current liabilities | 1,469 | 2,035 |
Total liabilities | 75,259 | 60,575 |
Commitments and contingencies (Note 13) | ||
Stockholders' equity: | ||
Common stock, $0.001 par value: Authorized shares: 120,000,000 at December 31, 2022 and December 31, 2021, respectively; Issued and outstanding: 37,279,994 shares and 36,768,035 shares at December 31, 2022 and December 31, 2021, respectively | 37 | 37 |
Additional paid-in capital | 763,688 | 745,936 |
Accumulated other comprehensive income | (2,623) | 441 |
Accumulated deficit | (402,162) | (305,462) |
Total stockholders' equity | 358,940 | 440,952 |
Total liabilities and stockholders' equity | $ 434,199 | $ 501,527 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Consolidated Balance Sheets | ||
Accounts receivable, reserve for doubtful accounts | $ 118 | $ 419 |
Accounts receivable, related parties | 89 | 200 |
Accounts payable, related parties | 0 | 42 |
Deferred revenue, related parties | $ 69 | $ 54 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized shares | 120,000,000 | 120,000,000 |
Common stock, shares issued | 37,279,994 | 36,768,035 |
Common stock, shares outstanding | 37,279,994 | 36,768,035 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Total revenue | $ 105,522 | $ 110,556 | $ 86,377 |
Costs of goods sold: | |||
Total costs of goods sold, services, and licenses | 58,716 | 48,828 | 38,195 |
Gross profit | 46,806 | 61,728 | 48,182 |
Operating expenses: | |||
Research and Development Expense (including related party activity of $696, $565, and $235 for the years ended December 31, 2022, 2021, and 2020 respectively) | 25,890 | 27,978 | 20,174 |
Selling, general and administrative (including related party activity of $41, $89, and $37 for the years ended December 31, 2022, 2021, and 2020 respectively) | 91,995 | 92,336 | 59,592 |
Other lease costs | 1,278 | ||
Restructuring | 3,755 | ||
Goodwill impairment | 8,220 | ||
Impairment expense | 17,372 | 0 | 0 |
Total operating expenses | 148,510 | 120,314 | 79,766 |
Loss from operations | (101,704) | (58,586) | (31,584) |
Interest income (expense), net | 5,131 | (403) | (273) |
Other (expense) income, net | (62) | 1,265 | (49) |
Loss before income taxes | (96,635) | (57,724) | (31,906) |
Income tax (expense) benefit | (65) | 36 | 376 |
Net loss | $ (96,700) | $ (57,688) | $ (31,530) |
Net loss per share, basic (in dollars per share) | $ (2.61) | $ (1.60) | $ (1.07) |
Net loss per share, diluted (in dollars per share) | $ (2.61) | $ (1.60) | $ (1.07) |
Weighted-average common shares outstanding, basic (in shares) | 36,990,965 | 35,997,473 | 29,589,132 |
Weighted-average common shares outstanding, diluted (in shares) | 36,990,965 | 35,997,473 | 29,589,132 |
Product revenue | |||
Total revenue | $ 69,808 | $ 81,062 | $ 44,017 |
Costs of goods sold: | |||
Total costs of goods sold, services, and licenses | 40,809 | 34,149 | 25,950 |
Service and other revenue | |||
Total revenue | 34,495 | 23,629 | 24,129 |
Costs of goods sold: | |||
Total costs of goods sold, services, and licenses | 17,907 | 14,679 | 11,245 |
Collaboration and license revenue | |||
Total revenue | 649 | 648 | 11,809 |
Costs of goods sold: | |||
Total costs of goods sold, services, and licenses | 1,000 | ||
Grant revenue | |||
Total revenue | $ 570 | $ 5,217 | $ 6,422 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related party activity research and development expenses | $ 696 | $ 565 | $ 235 |
Related party activity in selling, general and administrative expenses | 41 | 89 | 37 |
Product revenue | |||
Related party revenue | 2,634 | 505 | 580 |
Cost of revenue, related party activity | 154 | 1,936 | 205 |
Service and other revenue | |||
Related party revenue | 11 | 114 | 202 |
Cost of revenue, related party activity | 87 | 74 | 52 |
Collaboration and license revenue | |||
Cost of revenue, related party activity | $ 0 | $ 0 | $ 1,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Statements of Comprehensive Loss | |||
Net loss | $ (96,700) | $ (57,688) | $ (31,530) |
Other comprehensive loss: | |||
Foreign currency translation adjustment | (3,064) | (1,993) | 2,587 |
Total other comprehensive loss | (3,064) | (1,993) | 2,587 |
Comprehensive loss | $ (99,764) | $ (59,681) | $ (28,943) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities | |||
Net loss | $ (96,700) | $ (57,688) | $ (31,530) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization expense | 5,349 | 4,851 | 4,312 |
Inventory step-up amortization | 275 | 722 | |
Credit (income) loss expense on accounts receivable | (301) | 213 | 493 |
Unrealized losses (gains) on foreign currency transactions | (219) | 263 | (20) |
Non-cash lease expense | 715 | 499 | 245 |
Stock-based compensation expense | 15,442 | 15,975 | 10,099 |
Goodwill impairment | 8,220 | ||
Impairment of long-lived assets | 17,372 | 0 | 0 |
Non-cash interest expense | 65 | 86 | |
Deferred taxes | (226) | ||
Loss on disposal of fixed assets | 6 | 89 | 171 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 5,156 | (6,853) | (6,733) |
Prepaid expenses and other assets | (568) | (393) | (3,927) |
Inventory | 5,386 | (8,090) | (5,119) |
Other non-current assets | (909) | (2) | 198 |
Accounts payable | (5,362) | 2,414 | 649 |
Accrued compensation and benefits, other accrued expenses and other current liabilities | (3,976) | 606 | 6,326 |
Operating lease liabilities | (266) | (1,230) | 316 |
Other non-current liabilities | 10 | (363) | (488) |
Deferred revenue | 2,599 | 1,462 | 835 |
Net cash used in operating activities | (48,272) | (47,907) | (23,365) |
Investing activities | |||
Purchases of property and equipment | (11,726) | (13,616) | (3,930) |
Proceeds from RADx grant on assets purchased | 520 | 7,278 | 3,304 |
Net cash used in investing activities | (11,206) | (6,338) | (626) |
Financing activities | |||
Proceeds from stock options exercised | 1,430 | 7,750 | 4,019 |
Proceeds from ESPP purchase | 881 | 1,065 | 888 |
Payments on notes payable | (7,738) | (75) | |
Net cash provided by financing activities | 2,311 | 270,795 | 96,236 |
Net increase in cash and cash equivalents | (57,167) | 216,550 | 72,245 |
Effect of foreign currency exchange rate on cash | (538) | (92) | 158 |
Cash, restricted cash, and cash equivalents at beginning of period | 399,042 | 182,584 | 110,181 |
Cash, restricted cash, and cash equivalents at end of period | 341,337 | 399,042 | 182,584 |
Supplemental cash flow information | |||
Cash paid for interest | 389 | 625 | |
Cash paid for taxes | 684 | ||
Noncash transactions: | |||
Purchases of property and equipment included in accounts payable and other accrued expenses | 152 | 229 | 1,029 |
Right-of-use asset obtained in exchange for lease liabilities | $ 22,494 | ||
Underwritten public offering | |||
Financing activities | |||
Sale of common stock in underwritten public offering, net | $ 269,718 | $ 91,404 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Reconciliation of cash, cash equivalents, and restricted cash: | ||||
Cash and cash equivalents | $ 338,740 | $ 396,465 | $ 181,584 | |
Restricted cash | 2,597 | 2,577 | 1,000 | |
Total cash, cash equivalents, and restricted cash | $ 341,337 | $ 399,042 | $ 182,584 | $ 110,181 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Accumulated deficit | Total |
Beginning Balance at Dec. 31, 2019 | $ 28 | $ 345,027 | $ (153) | $ (216,244) | $ 128,658 |
Beginning balance (in shares) at Dec. 31, 2019 | 28,112,201 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Exercised stock options | $ 1 | 4,018 | 4,019 | ||
Exercised stock options (in shares) | 407,687 | ||||
Restricted units converted (in shares) | 182,036 | ||||
ESPP stock purchase | 888 | 888 | |||
ESPP stock purchase (in shares) | 45,846 | ||||
Sale of common stock in underwritten public offering, net | $ 3 | 91,401 | 91,404 | ||
Sale of common stock in underwritten public offering, net (in shares) | 3,048,774 | ||||
Stock-based compensation expense | 10,099 | 10,099 | |||
Foreign currency translation adjustment | 2,587 | 2,587 | |||
Net loss | (31,530) | (31,530) | |||
Ending Balance at Dec. 31, 2020 | $ 32 | 451,433 | 2,434 | (247,774) | 206,125 |
Ending Balance (in shares) at Dec. 31, 2020 | 31,796,544 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Exercised warrants (in shares) | 7,347 | ||||
Exercised stock options | $ 1 | 7,749 | 7,750 | ||
Exercised stock options (in shares) | 516,792 | ||||
Restricted units converted (in shares) | 307,004 | ||||
ESPP stock purchase | 1,065 | 1,065 | |||
ESPP stock purchase (in shares) | 29,037 | ||||
Issuance of common stock (in shares) | 4,169 | ||||
Sale of common stock in underwritten public offering, net | $ 4 | 269,714 | 269,718 | ||
Sale of common stock in underwritten public offering, net (in shares) | 4,107,142 | ||||
Stock-based compensation expense | 15,975 | 15,975 | |||
Foreign currency translation adjustment | (1,993) | (1,993) | |||
Net loss | (57,688) | (57,688) | |||
Ending Balance at Dec. 31, 2021 | $ 37 | 745,936 | 441 | (305,462) | 440,952 |
Ending Balance (in shares) at Dec. 31, 2021 | 36,768,035 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Exercised stock options | 1,430 | 1,430 | |||
Exercised stock options (in shares) | 243,792 | ||||
Restricted units converted | (1) | (1) | |||
Restricted units converted (in shares) | 199,938 | ||||
ESPP stock purchase | 881 | 881 | |||
ESPP stock purchase (in shares) | 57,485 | ||||
Issuance of common stock (in shares) | 10,744 | ||||
Stock-based compensation expense | 15,442 | 15,442 | |||
Foreign currency translation adjustment | (3,064) | (3,064) | |||
Net loss | (96,700) | (96,700) | |||
Ending Balance at Dec. 31, 2022 | $ 37 | $ 763,688 | $ (2,623) | $ (402,162) | $ 358,940 |
Ending Balance (in shares) at Dec. 31, 2022 | 37,279,994 |
Organization and operations
Organization and operations | 12 Months Ended |
Dec. 31, 2022 | |
Organization and operations | |
Organization and operations | 1. Organization and operations Quanterix Corporation (Nasdaq: QTRX) (the Company) is a life sciences company that has developed next generation, ultra-sensitive digital immunoassay platforms that advance precision health for life sciences research and diagnostics. The Company’s platforms are based on its proprietary digital “Simoa” detection technology. The Company’s Simoa bead-based and planar array platforms enable customers to reliably detect protein biomarkers in extremely low concentrations in blood, serum and other fluids that, in many cases, are undetectable using conventional, analog immunoassay technologies, and also allow researchers to define and validate the function of novel protein biomarkers that are only present in very low concentrations and have been discovered using technologies such as mass spectrometry. These capabilities provide the Company’s customers with insight into the role of protein biomarkers in human health that has not been possible with other existing technologies and enable researchers to unlock unique insights into the continuum between health and disease. The Company is currently focusing on protein detection, but the Company’s Simoa platforms have also demonstrated applicability across other testing applications, including detection of nucleic acids and small molecules. The Company launched its first immunoassay platform, the Simoa HD-1, in 2014. The HD-1 is a fully automated immunoassay bead-based platform with multiplexing and custom assay capability, and related assay test kits and consumable materials. The Company launched a second bead-based immunoassay platform (SR-X) in the fourth quarter of 2017 with a more compact footprint than the Simoa HD-1 and less automation designed for lower volume requirements while still allowing multiplexing and custom assay capability. The Company initiated an early-access program for its third instrument (SP-X) on the new Simoa planar array platform in January 2019, with the full commercial launch commencing in April 2019. In July 2019, the Company launched the Simoa HD-X, an upgraded version of the Simoa HD-1 which replaces the HD-1. The HD-X has been designed to deliver significant productivity and operational efficiency improvements, as well as greater user flexibility. The Company began shipping and installing HD-X instruments at customer locations in the third quarter of 2019. The Company also performs research services on behalf of customers to apply the Simoa technology to specific customer needs. The Company's customers are primarily in the research use only market, which includes academic and governmental research institutions, the research and development laboratories of pharmaceutical manufacturers, contract research organizations, and specialty research laboratories. The Company’s wholly owned subsidiary UmanDiagnostics AB (Uman), a Swedish company located in Umeå, Sweden, supplies neurofilament light (Nf-L) antibodies and ELISA kits, which are widely recognized by researchers and biopharmaceutical and diagnostics companies world-wide as the premier solution for the detection of Nf-L to advance the development of therapeutics and diagnostics for neurodegenerative conditions. Underwritten public offerings On August 6, 2020, the Company entered into an underwriting agreement with SVB Leerink LLC and Cowen and Company, LLC (Cowen), as representatives of the several underwriters, relating to an underwritten public offering of approximately 3.0 million shares of the Company’s common stock, par value $0.001 per share. The underwritten public offering resulted in gross proceeds of $97.6 million. The Company incurred $6.2 million in issuance costs associated with the underwritten public offering, resulting in net proceeds to the Company of $91.4 million. On February 3, 2021, the Company entered into an underwriting agreement with Goldman Sachs & Co. LLC, Leerink, and Cowen, as representatives of the several underwriters, relating to an underwritten public offering of approximately 4.1 million shares of the Company’s common stock, par value $0.001 per share. The underwritten public offering resulted in gross proceeds of $287.5 million. The Company incurred $17.8 million in issuance costs associated with the underwritten public offering, resulting in net proceeds to the Company of $269.7 million. Liquidity The Company has recognized annual losses from operations since inception and has an accumulated deficit of $402.2 million as of December 31, 2022. The Company incurred net losses of $96.7 million, $57.7 million, and $31.5 million for the years ended December 31, 2022, 2021, and 2020, respectively. The Company had $338.7 million and $396.5 million of unrestricted cash and cash equivalents for the years ended December 31, 2022 and 2021, respectively. The Company expects that its cash and cash equivalents, as of December 31, 2022, will be sufficient to fund its operations for a period of at least one year from the date the consolidated financial statements are issued. There can be no assurances, however, that no additional funding will be required or that additional funding will be available on terms acceptable to the Company, or at all. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2022 | |
Significant accounting policies | |
Significant accounting policies | 2. Significant accounting policies Principles of consolidation The consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of Quanterix Corporation, and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. In making those estimates and assumptions, the Company bases its estimates on historical experience and on various other assumptions believed to be reasonable. The Company’s significant estimates included in the preparation of the consolidated financial statements are related to revenue recognition and valuation of inventory. Actual results could differ from those estimates. Reclassifications Segment information Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision-maker, the Company’s Chief Executive Officer, in deciding how to allocate resources and assess performance. The Company and the Company's chief operating decision-maker reviews the Company's operations and manages its business as a single operating segment. Cost of revenue Cost of goods sold for products consists of HD-X, HD-1, and SR-X instrument costs from the manufacturer and related reagents and other consumables. Cost of goods sold for SP-X consists of costs based on the internal assembly of this item. Raw material part costs; inbound freight, shipping and handling costs associated with purchased goods; contract manufacturer costs; personnel costs; royalties; overhead and other direct costs related to those sales are classified as cost of goods sold for products. Cost of service and other revenue consists of raw materials, personnel costs, royalties as well as overhead and other direct costs associated with operating the Accelerator Laboratory on behalf of customers, in addition to costs related to warranties and other costs of servicing equipment at customer sites. Cost of license revenue consists of license fees that are the direct results of cash payments received related to license agreements. Research and development expenses Research and development expenses, including personnel costs, allocated facility costs, lab supplies, outside services, contract laboratory costs are charged to research and development expense as incurred. The Company accounts for nonrefundable advance payments for goods and services that will be used in future research and development activities as expense when the service has been performed or when the goods have been received. Expenses incurred related to grant funded activities are recorded in research and development expense. Selling, general, and administrative expenses Selling, general and administrative expenses consist primarily of personnel costs for the Company’s sales and marketing, finance, legal, human resources and general management, costs associated with shipping and handling for product sales, other general and administrative costs, as well as professional services costs, such as marketing, advertising, legal and accounting services in addition to allocated overhead costs that include facility and other overhead costs. The classification of shipping and handling costs for product sales as selling, general, and administrative expenses varies from company to company with some companies recording these as selling, general and administrative expenses and others recording such expenses within costs of goods sold for products. To the extent the classification of these shipping and handling costs differs from the reporting approach used by other companies, the Company’s gross margins may not be comparable with those reported by such other companies. Shipping and handling costs for product sales included within selling, general and administrative expenses were $7.2 million, $6.9 million and $4.8 million for the years ended December 31, 2022, 2021 and 2020, respectively. Net loss per share Basic net loss per common share attributable to common stockholders is calculated by dividing the loss attributable to common stockholders by the weighted-average number of common shares. For purposes of the diluted net loss per share calculations, unvested restricted common stock, restricted stock units, common stock options, and warrants are considered to be potentially dilutive securities, but are excluded from the diluted net loss per share because their effect would be anti-dilutive and therefore basic and diluted net loss per share were the same for all periods presented. Cash and cash equivalents Cash and cash equivalents consist of cash deposits and short-term, highly liquid investments that are readily convertible into cash, with original maturities of three months or less. Cash equivalents are carried at fair value based on quoted prices for identical assets. Cash and cash equivalents consist of the following (in thousands): As of December 31, 2022 2021 Cash $ 32,643 $ 64,372 Money market funds invested in U.S. Treasury obligations 306,097 332,093 Total cash and cash equivalents $ 338,740 $ 396,465 Restricted cash and deposits Restricted cash primarily represents collateral for a letter of credit issued as security for the lease for the Company’s headquarters in Billerica, Massachusetts, and additional space in Bedford, Massachusetts, and to secure the Company’s corporate credit card program. The restricted cash is long term in nature as the Company will not have access to the funds until more than one year from December 31, 2022. Inventory Inventory is stated at the lower of cost or market on a first-in, first-out (FIFO) basis. The Company analyzes its inventory levels on each reporting date and writes down inventory that is expected to expire prior to being sold and inventory in excess of expected sales requirements. In the event that the Company identifies these conditions exist in its inventory, the carrying value is reduced to its estimated net realizable value. Property and equipment Property and equipment, including leasehold improvements, are stated at cost and are depreciated, or amortized in the case of leasehold improvements, over their estimated useful lives using the straight-line method. Expenditures for maintenance and repairs are charged to expense as incurred, whereas major betterments are capitalized as additions to property and equipment. The Company reviews its property and equipment whenever events or changes in circumstances indicate that the carrying value of certain assets might not be recoverable and recognizes an impairment loss when it is probable that an asset’s realizable value is less than the carrying value. The Company recorded impairment expenses during the year-end December 31, 2022. Refer to Note 7 for additional details. Depreciation is calculated based upon the following estimated useful lives of the assets: Laboratory and manufacturing equipment Five years Computers and software Three years Office furniture and equipment Seven years Leasehold improvements Shorter of the useful life of the asset or the remaining term of the lease Leases The Company accounts for leases in accordance with ASC Topic 842, Leases Operating lease liabilities and their corresponding ROU assets are initially recorded based on the present value of lease payments over the expected remaining lease term. The rate implicit in lease contracts is typically not readily determinable and, as a result, the Company utilizes its incremental borrowing rate to discount lease payments, which reflects the fixed rate at which the Company could borrow on a collateralized basis the amount of the lease payments, for a similar term, in a similar economic environment. To estimate its incremental borrowing rate, a credit rating applicable to the Company is estimated using a synthetic credit rating analysis since the Company does not currently have a rating agency-based credit rating. Software development costs The Company develops and modifies software related to the operation of some of its instruments. Software development costs are expensed as incurred until the point the Company establishes technological feasibility. Based on the Company’s product development process, technological feasibility is established upon the completion of a working model. The Company does not incur material costs between the completion of the working model and the point at which the product is ready for release. Therefore, software development costs are charged to the statement of operations as incurred as research and development expense. Fair value of financial instruments ASC Topic 820, Fair Value Measurement ASC 820 identifies fair value as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a three-tier fair value hierarchy that distinguishes between the following: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; and Level 3 inputs are unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The carrying amount reflected on the balance sheets for cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities approximated their fair values, due to the short-term nature of these instruments. Fair value measurements are as follows (in thousands): Quoted prices Significant in active Significant other unobservable markets observable inputs December 31, 2022 Total (Level 1) inputs (Level 2) (Level 3) Financial assets Cash equivalents - money market funds $ 306,097 $ 306,097 $ — $ — Quoted prices Significant Significant in active other unobservable markets observable inputs December 31, 2021 Total (Level 1) inputs (Level 2) (Level 3) Financial assets Cash equivalents - money market funds $ 332,093 $ 332,093 $ — $ — Warranties The Company provides a one-year warranty and maintenance service related to its instruments and sells extended warranty contracts for additional periods. The Company defers revenue associated with these services and recognizes them on a pro-rata basis over the period of service. Income taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on differences between the consolidated financial statement carrying amounts and the tax bases of the assets and liabilities using the enacted tax rates in effect in the years in which the differences are expected to reverse. A valuation allowance against deferred tax assets is recorded if, based on the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740 Income Taxes Credit, product, and supplier concentrations and off-balance-sheet risk The Company has no significant off-balance-sheet risk, such as foreign exchange contracts, option contracts, or other hedging arrangements. Financial instruments that potentially expose the Company to concentrations of credit risk primarily consist of cash and cash equivalents and a cost method investment. The Company places its cash and cash equivalents principally in depository accounts with a bank. The Company is also subject to supply chain risks related to the outsourcing of the manufacturing of its instruments. Although there are a limited number of manufacturers for instruments of this type, the Company believes that other suppliers could provide similar products on comparable terms. A change in suppliers, however, could cause a delay in manufacturing and a possible loss of sales, which would adversely affect operating results. In addition to outsourcing the manufacturing of its instruments, the Company also purchases antibodies through a number of different suppliers. Although a disruption in service from any one of its antibody suppliers is possible, the Company believes that it would be able to find an adequate supply from alternative suppliers. Customers outside the United States represented 41% and 39% of the Company’s gross trade accounts receivable balance as of December 31, 2022, and 2021, respectively. For the year ended December 31, 2022, one customer of approximately $13.7 million revenue accounted for 13% of the Company’s total revenue. For the year ended December 31, 2021, no customers individually accounted for more than 10% of the Company’s total revenue. Stock-based compensation The Company accounts for stock-based compensation awards in accordance with ASC 718, Compensation—Stock Compensation options and restricted stock units. Stock-based compensation costs for employees are recognized as expense over the requisite service period, which is generally the vesting period of the respective awards. The Company recognizes forfeitures as they occur. The Company estimates the grant date fair value, and the resulting stock-based compensation expense, using the Black-Scholes option-pricing model. The fair value of stock options granted to employees and non-employees is estimated on the grant date using the Black-Scholes option-pricing model, based on the assumptions noted in the following table: Year Ended December 31, 2022 2021 2020 Risk-free interest rate 1.4% - 4.1% 0.4% - 1.3% 0.4% - 1.7% Expected dividend yield None None None Expected term (in years) 5.0 - 5.8 6.0 6.0 Expected volatility 55.0% - 70.8% 49.2% - 55.6% 43.9% - 49.2% Weighted-average grant date fair value $ 9.88 $ 29.96 $ 12.66 The Company uses its historical volatility and implied volatility as a basis to estimate expected volatility in the Company’s valuation of stock options. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant, commensurate with the expected term assumption. The Company estimates the expected term of options granted to employees utilizing the simplified method which calculates the expected term of an option as the average of the time to vesting and contractual life of the options. The expected term is applied to the stock option grant group as a whole, as the Company does not expect substantially different exercise or post-vesting termination behavior among its employee population. The Company used the simplified method due to the lack of historical exercise data and the plain nature of the stock options. The Company uses the remaining contractual term for the expected term of non-employee awards. The expected dividend yield is assumed to be zero as the Company has never paid dividends and has no current plans to pay any dividends on common stock. Recent accounting pronouncements Adopted In June 2016, the Financial Accounting Standards Board (FASB) established Topic 326 , Financial Instruments — Credit Losses: Measurement of Credit Losses on Financial Instruments In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . This ASU addresses the accounting for implementation, setup and other upfront costs paid by a customer in a cloud computing or hosting arrangement. The guidance aligns the accounting treatment of these costs incurred in a hosting arrangement treated as a service contract with the requirements for capitalization and amortization costs to develop or obtain internal-use software. The Company adopted ASU 2018-15 on January 1, 2021 using the prospective method. The adoption of ASU 2018-15 did not have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes Income Taxes 12 removes certain exceptions for performing intra period tax allocations and calculating income taxes in interim periods. The guidance also simplifies the accounting for transactions that result in a step-up in the tax basis of goodwill and the effect of enacted changes in tax laws or rates in interim periods. The Company early adopted ASU 2019-12 on January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on the Company’s consolidated financial statements. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue | |
Revenue | 3. Revenue The Company recognizes revenue when a customer obtains control of a promised good or service. The amount of revenue recognized reflects consideration that the Company expects to be entitled to receive in exchange for these goods and services, incentives and taxes collected from customers that are subsequently remitted to governmental authorities. Customers The Company’s customers primarily consist of entities engaged in the life sciences research market that pursue the discovery and development of new drugs for a variety of neurologic, cardiovascular, oncologic and other protein biomarkers associated with diseases. The Company’s customer base includes several of the largest biopharmaceutical companies, academic research organizations and distributors who serve certain geographic markets. Product revenue The Company’s products are composed of analyzer instruments, assay kits and other consumables such as reagents. Products are sold directly to biopharmaceutical and academic research organizations or are sold through distributors in EMEA and Asia Pacific regions. The sales of instruments are generally accompanied by an initial year of implied service-type warranties and may be bundled with assays and other consumables and may also include other items such as training and installation of the instrument and/or an extended service warranty. Revenues from the sale of products are recognized at a point in time when the Company transfers control of the product to the customer, which is generally upon installation for instruments sold to direct customers, and based upon shipping terms for assay kits and other consumables. Revenue for instruments sold to distributors is generally recognized based upon shipping terms (either upon shipment or delivery). Service and other revenue Service revenues are composed of contract research services, initial implied one-year service-type warranties, extended services contracts and other services such as training. Contract research services are provided through the Company’s Accelerator Laboratory and generally consist of fixed fee contracts. Revenues from contract research services are recognized at a point in time when the Company completes and delivers its research report on each individually completed study, or over time if the contractual provisions allow for the collection of transaction consideration for costs incurred plus a reasonable margin through the period of performance of the services. Revenues from service-type warranties are recognized ratably over the contract service period. For contract research services recognized over time, the Company uses the output method to measure the progress toward the complete satisfaction of the performance obligations. Revenues from other services are immaterial. During the first quarter of 2022, the Company entered into a Master Collaboration Agreement with Eli Lilly and Company (Lilly) establishing a framework for future projects focused on the development of Simoa immunoassays (the Lilly Collaboration Agreement). The Company also entered into a Statement of Work under the Lilly Collaboration Agreement to perform assay research and development services within the field of Alzheimer’s disease. In connection with the Lilly Collaboration Agreement, the Company received a non-refundable up-front payment of $5.0 million during the first quarter of 2022, and under the Statement of Work received $1.5 million per calendar quarter during 2022, beginning with the first quarter of 2022. The revenue has been recognized over a one-year period. The Lilly Collaboration Agreement automatically renews on a quarterly basis unless Lilly provides 100 days’ termination notice. Concurrent with the execution of the Lilly Collaboration Agreement, the Company entered into a Technology License Agreement (the Lilly License) under which Lilly granted to the Company a non-exclusive license to Lilly’s proprietary P-tau217 antibody technology for potential near-term use in research use only products and services and future in vitro diagnostics applications within the field of Alzheimer’s disease. In consideration of the license, the Company paid an upfront fee, is required to make milestone payments based on the achievement of predetermined regulatory and commercial events, and will pay a royalty on net sales of licensed products. The Company concluded that the Lilly Collaboration Agreement (including the Statement of Work) and the Lilly License represented a single contract with a customer and we are accounting for the agreements as service revenue recognized over time as the services are delivered. The transaction price for the Lilly Collaboration Agreement is $10.9 million. Contingent amounts due to Lilly, under the Lilly License, represent variable consideration payable to a customer and will be recognized as reductions to service revenue up to the amount of the transaction price recognized, when probable. The Company is utilizing an input method to measure the delivery of services by calculating costs incurred at each period end relative to total costs expected to be incurred. During the year ended December 31, 2022, the Company recognized approximately $10.9 million of revenue from the Lilly Collaboration Agreement. Collaboration and license revenue The Company may enter into agreements to license the intellectual property and know-how associated with its instruments and certain antibodies in exchange for license fees and future royalties (as described below). The license agreements provide the licensee with a right to use the intellectual property with the license fee revenues recognized at a point in time as the underlying license is considered functional intellectual property. Payment terms The Company’s payment terms vary by the type and location of the customer and the products or services offered. Payment from customers is generally required in a term ranging from 30 to 45 days from date of shipment or satisfaction of the performance obligation. The Company does not provide financing arrangements to its customers. Disaggregated revenue When disaggregating revenue, the Company considered all of the economic factors that may affect its revenues. The following tables disaggregate the Company’s revenue from contracts with customers by revenue type (in thousands): Year Ended December 31, 2022 (in thousands) North America EMEA Asia Pacific Total Product revenues: Instruments $ 9,254 8,362 7,388 $ 25,004 Consumable and other products 25,894 14,514 4,396 44,804 Total $ 35,148 $ 22,876 $ 11,784 $ 69,808 Service and other revenues: Service-type warranties $ 5,581 $ 2,779 $ 480 $ 8,840 Research services 22,493 1,013 147 23,653 Other services 1,144 722 136 2,002 Total $ 29,218 $ 4,514 $ 763 $ 34,495 Collaboration and license revenue: Collaboration and license revenue $ 274 $ 323 $ 52 $ 649 Year Ended December 31, 2021 (in thousands) North America EMEA Asia Pacific Total Product revenues: Instruments $ 12,138 $ 8,178 $ 5,657 $ 25,973 Consumable and other products 34,997 16,122 3,970 55,089 Total $ 47,135 $ 24,300 $ 9,627 $ 81,062 Service and other revenues: Service-type warranties $ 4,334 $ 2,039 $ 255 $ 6,628 Research services 12,101 2,600 124 14,825 Other services 1,372 695 109 2,176 Total $ 17,807 $ 5,334 $ 488 $ 23,629 Collaboration and license revenue: Collaboration and license revenue $ 360 $ 288 $ — $ 648 Year Ended December 31, 2020 (in thousands) North America EMEA Asia Pacific Total Product revenues: Instruments $ 8,680 $ 4,332 $ 3,594 $ 16,606 Consumable and other products 14,305 10,854 2,252 27,411 Total $ 22,985 $ 15,186 $ 5,846 $ 44,017 Service and other revenues: Service-type warranties $ 3,171 $ 1,543 $ 207 $ 4,921 Research services 15,011 2,225 737 17,973 Other services 700 435 100 1,235 Total $ 18,882 $ 4,203 $ 1,044 $ 24,129 Collaboration and license revenue: Collaboration and license revenue $ 11,685 $ 124 $ — $ 11,809 The Company’s contracts with customers may include promises to transfer multiple products and services to a customer. The Company combines any performance obligations that are immaterial with one or more other performance obligations that are material to the contract. For arrangements with multiple performance obligations, the Company allocates the contract transaction price, including discounts, to each performance obligation based on its relative standalone selling price. Judgment is required to determine the standalone selling price for each distinct performance obligation. The Company determines standalone selling prices based on prices charged to customers in observable transactions and uses a range of amounts to estimate standalone selling prices for each performance obligation. The Company may have more than one range of standalone selling price for certain products and services based on the pricing for different customer classes. Variable consideration in the Company’s contracts primarily relates to (i) sales- and usage-based royalties related to the license of intellectual property in collaboration and license contracts and (ii) certain non-fixed fee research services contracts. Accounting Standard Codification (ASC) Topic 606, Revenue from Contracts with Customers Changes in deferred revenue from contracts with customers were as follows (in thousands): Year Ended December 31, 2022 Balance at December 31, 2021 $ 7,460 Deferral of revenue 11,444 Recognition of deferred revenue (8,845) Balance at December 31, 2022 $ 10,059 The aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied or that are partially satisfied as of December 31, 2022 is $10.1 million. Of the performance obligations not yet satisfied or that are partially satisfied, $8.6 million is expected to be recognized as revenue in the next 12 months, with the remainder amounts Costs to obtain a contract The Company’s sales commissions are generally based on bookings of the Company. The Company has determined that certain commissions paid under its sales incentive programs meet the requirements to be capitalized as they are incremental and would not have occurred absent a customer contract. The change in the balance of costs to obtain a contract are as follows (in thousands): 2022 Balance at January 1 $ 440 Deferral of costs to obtain a contract 1,387 Recognition of costs to obtain a contract (1,450) Balance at December 31 $ 377 The Company has classified the balance of capitalized costs to obtain a contract as a component of prepaid expenses and other current assets and will subsequently amortize the expense as a component of cost of goods sold and selling, general, and administrative expense over the estimated life of the contract. The Company considers potential impairment in these amounts each period. ASC 606 provides entities with certain practical expedients and accounting policy elections to minimize the cost and burden of adoption. The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with original expected length of one year or less and (ii) contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed. The Company will exclude from its transaction price any amounts collected from customers related to sales and other similar taxes. When determining the transaction price of a contract, an adjustment is made if payment from a customer occurs either significantly before or significantly after performance, resulting in a significant financing component. The Company does not assess whether a significant financing component exists if the period between when the Company performs its obligations under the contract and when the customer pays is one year or less. None of the Company’s contracts contained a significant financing component as of December 31, 2022, and 2021, respectively. The Company has elected to account for the shipping and handling as an activity to fulfill the promise to transfer the product, and therefore will not evaluate whether shipping and handling activities are promised services to its customers. Grant revenue The Company recognizes grant revenue as the Company performs services under the arrangement when the funding is committed. Revenues and related research and development expenses are presented gross in the consolidated statements of operations as the Company has determined it is the primary obligor under the arrangement relative to the research and development services. Accounting for grants does not fall under ASC 606, as the grantor will not benefit directly from the Company’s expansion or product development. As there is no authoritative guidance under U.S. GAAP on accounting for grants to for profit business entities from government entities, the Company has accounted for grants obtained with the National Institute of Health (NIH) under its Rapid Acceleration of Diagnostics (RADx) program by analogy to International Accounting Standards Topic 20, Accounting for Government Grants and Disclosure of Government Assistance Not for-Profit Entities Under IAS 20, grants related to assets shall be presented in the consolidated balance sheets either by recognizing the grant as deferred income (which is recognized in the consolidated statements of operations on a systematic basis over the useful life of the asset), or by deducting the grant in calculating the carrying amount of the asset (which is recognized in the consolidated statements of operations over the life of the depreciable asset as a reduced depreciation expense). Both methods are acceptable under IAS 20. The Company has elected to record grants related to assets as a deduction in calculating the carrying value of the asset. Under IAS 20, grants related to income are presented as part of the consolidated statements of operations, either separately or under a general heading. Both methods are acceptable under IAS 20. The Company has elected to record grants related to income separately on the consolidated statements of operations as grant revenue. The related expenses are recorded within operating expenses. Under ASC 958, grants related to income are presented as part of the consolidated statements of operations, either separately or under a general heading. Both methods are acceptable under ASC 958. The Company has elected to record grants related to income separately on the consolidated statements of operations as grant revenue. The related expenses are recorded within operating expenses. RADx grant On September 29, 2020, the Company entered into WP2 with the NIH under its RADx program. The contract, which had a total award value of $18.2 million, accelerated the continued development, scale-up, and deployment of the novel SARS-CoV-2 antigen detection test using the Company’s Simoa technology. The contract provided funding to expand assay kit manufacturing capacity and commercial deployment readiness. Release of the $18.2 million of funding under WP2 was based on the achievement of certain milestones. Contract funding was subject to achievement of these pre-defined milestones and the contract period ran through September 2021, with one milestone extended to March 31, 2022. The Company has received the full $18.2 million under WP2. During the year ended December 31, 2022, the Company recognized no grant revenue and incurred no research and development expense related to WP2. During the year ended December 31, 2021, the Company recognized $5.2 million in grant revenue and incurred $3.4 million in research and development expense related to WP2. During the year ended December 31, 2020, the Company recognized $4.4 million in grant revenue and incurred $2.6 million in research and development expense related to WP2. The RADx Grant contains both monetary amounts granted related to assets and monetary amounts granted related to income, which are grants other than those related to assets. The grants related to assets are for the expansion and increase of manufacturing capacity. The grants related to income are for additional research and development, as well as other non-asset related scale up costs. The following table summarizes the cumulative activity under the RADx Grant (in thousands): December 31, 2022 December 31, 2021 December 31, 2020 Total grant revenue from research and development activities $ 9,576 $ 9,576 $ 4,362 Total proceeds used for assets 8,624 8,104 826 Total deferred proceeds for assets — — 2,478 Total deferred grant revenue — — 304 Total recognized $ 18,200 $ 17,680 $ 7,970 Total recognized $ 18,200 $ 17,680 $ 7,970 Total amount accrued — — (2,968) Total cash received $ 18,200 $ 17,680 $ 5,002 Total proceeds received $ 18,200 $ 17,680 $ 5,002 Total proceeds reasonably assured — 520 13,198 Total RADx Grant amount $ 18,200 $ 18,200 $ 18,200 ADDF On March 24, 2022, the Company entered into a contract with the Alzheimer’s Drug Discovery Foundation (ADDF) (the ADDF Grant). ADDF is a charitable venture philanthropy entity that has granted the Company funding in support of certain activities for the development of an in vitro diagnostic (IVD) test for early detection of Alzheimer's disease. The ADDF Grant, which has a total funding value of $2.3 million, restricts the Company’s use of the granted funds to be used solely for activities related to the Alzheimer’s diagnostic test development project. Contract funding is subject to achievement of these pre-defined milestones and the contract period runs through June 2024. The Company recognizes revenue over time as the related services are performed. As of December 31, 2022, the Company had received $1.3 million of the total funding value of $2.3 million under the ADDF Grant. During the year ended December 31, 2022, the Company recognized $0.6 million in grant revenue and incurred $0.6 million in research and development expense related to the ADDF Grant. No such activities occurred in the years ended December 31, 2021 and 2020. |
Allowance for credit Losses
Allowance for credit Losses | 12 Months Ended |
Dec. 31, 2022 | |
Allowance for credit Losses | |
Allowance for credit Losses | 4. Allowance for credit losses The Company is exposed to credit losses primarily through sales of products and services. The Company’s expected loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions, and a review of the current status of customers’ trade accounts receivable. Due to the short-term nature of such receivables, the estimated accounts receivable that may not be collected is based on aging of the accounts receivable balances. 2022 2021 2020 Balance at January 1 $ 419 $ 370 $ 162 Provision charges 752 213 493 Deductions (1,053) (164) (285) Balance at December 31 $ 118 $ 419 $ 370 |
Collaboration and license arran
Collaboration and license arrangements | 12 Months Ended |
Dec. 31, 2022 | |
Collaboration and license arrangements | |
Collaboration and license arrangements | 5. Collaboration and license arrangements The Company has entered into certain licenses with other companies for use of the Company’s technology. These licenses have royalty components which the Company earns and recognizes as collaboration and license revenue throughout the year. As of December 31, 2022 and 2021, the Company had $0.5 million of deferred revenue related to ongoing negotiations with a diagnostics company. Abbott Laboratories On September 29, 2020, the Company entered into a Non-Exclusive License Agreement (the Abbott License Agreement) with Abbott. Pursuant to the terms of the Abbott License Agreement, the Company granted Abbott a non-exclusive, worldwide, royalty-bearing license, without the right to sublicense, under the Company’s bead-based single molecule detection patents (Licensed Patents) in the field of in vitro The Abbott License Agreement includes customary representations and warranties, covenants and indemnification obligations for a transaction of this nature. The Abbot License Agreement became effective upon signing and will continue until expiration of the last-to-expire Licensed Patent, or the agreement is earlier terminated. Under the terms of the Abbott License Agreement, the Company and Abbott each have the right to terminate the agreement for uncured material breach by, or insolvency of, the other party. Abbott may also terminate the Abbott License Agreement at any time without cause upon 60 days’ notice. During the years ended December 31, 2022 and 2021, the Company recognized no revenue, respectively, within collaboration and license revenue related to the initial license fee under the Abbott License Agreement. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2022 | |
Inventory | |
Inventory | 6. Inventory Inventory consists of the following (in thousands): As of December 31, 2022 2021 Raw materials $ 5,509 $ 7,892 Work in process 3,362 4,923 Finished goods 7,915 9,375 Total $ 16,786 $ 22,190 Inventory comprises commercial instruments, assays, and the materials required to manufacture assays. |
Property and equipment
Property and equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property and equipment | |
Property and equipment | 7. Property and equipment Property and equipment consists of the following (in thousands): As of December 31, 2022 2021 Laboratory and manufacturing equipment $ 11,806 $ 9,742 Office furniture and equipment 1,798 1,617 Computers and software 3,831 3,893 Leasehold improvements 13,688 10,413 Total cost $ 31,123 $ 25,665 Less: accumulated depreciation (10,961) (7,705) Property and equipment, net $ 20,162 $ 17,960 The Company incurred depreciation expense of $3.5 million, $2.8 million and $2.2 million for the years ended December 31, 2022, 2021, and 2020, respectively. The Company has instruments included in laboratory and manufacturing equipment, which are used internally by the Company. As of December 31, 2022, the laboratory and manufacturing equipment balance includes $7.5 million of cost and $3.2 million of accumulated depreciation related to these instruments. As of December 31, 2021, the laboratory and manufacturing equipment balance includes $3.9 million of cost and $1.5 million of accumulated depreciation related to these instruments. For the year ended December 31, 2022, the Company recorded $4.3 million of impairment expense to leasehold improvements and other assets associated with the Bedford, Massachusetts leased office and laboratory space not being utilized by the Company. The Company decided not to utilize the space as part of the Restructuring Plan and intends to sublease the vacant space to recover a portion of the total cost. The Company’s decision to not utilize, and sublease, the leased asset triggered an impairment event. The impairment testing deemed all assets associated with the leased assets as one asset group. The impairment analysis evaluated the present value of net cash flows under the original lease and the estimated cash flows under the sublease to identify the impairment amount. The impairment assessment considered all industry and economic factors such as rental rates, interest rates and recent real estate activities to estimate the net cash flows analysis and impairment amount. The Company recorded $1.1 million of impairment expense to Computers and software for the year ended December 31, 2022. A change in the scope of the intended use of these assets was considered to be the triggering event for the impairment assessment and expense. No such impairment expenses were recognized for the years ended December 31, 2021 and 2020. |
Other accrued expenses
Other accrued expenses | 12 Months Ended |
Dec. 31, 2022 | |
Other accrued expenses | |
Other accrued expenses | 8. Other accrued expenses Other accrued expenses consist of the following (in thousands): As of December 31, 2022 2021 Royalties $ 815 $ 1,250 Professional and outside services 1,409 2,126 Tax liabilities 172 430 Other 2,351 2,680 Total accrued expenses $ 4,747 $ 6,486 |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income taxes | |
Income taxes | 9. Income taxes The following table presents the components of loss before income taxes (in thousands): Year Ended December 31, 2022 2021 2020 United States $ (89,590) $ (56,554) $ (29,896) Foreign (7,045) (1,170) (2,010) Total loss before income taxes $ (96,635) $ (57,724) $ (31,906) The following table summarizes income tax (expense) benefit (in thousands): Year Ended December 31, 2022 2021 2020 Current: United States Federal $ — $ — $ — State (77) (30) (13) Foreign (368) (342) (102) Total current income tax provision (445) (372) (115) Deferred United States Federal 10 5 (8) State 13 (6) (3) Foreign 357 409 502 Total deferred income tax benefit 380 408 491 Total income tax (expense) benefit $ (65) $ 36 $ 376 A reconciliation of the federal statutory income tax rate to the effective tax rate is as follows: Year Ended December 31, 2022 2021 2020 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % Foreign tax rate differential — % — % 0.30 % State taxes, net of federal benefit 2.7 % 6.5 % 2.5 % Tax credits 1.4 % 2.0 % 1.6 % Share-based compensation (2.5) % 7.4 % 5.2 % Permanent items (0.3) % (1.8) % (0.4) % Deferred tax rate change — % 0.2 % 0.3 % Change in valuation allowance (20.8) % (34.8) % (29.7) % Impairment of goodwill (1.7) % — % — % Other 0.0 % (0.4) % 0.4 % Effective income tax rate (0.2) % 0.1 % 1.2 % The effective income tax rate differs from the U.S. federal statutory rate of 21.0% primarily as a result of the valuation allowance maintained against the Company’s net deferred tax assets. Deferred tax assets and liabilities reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands): December 31, 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 78,191 $ 67,543 Tax credits 7,407 6,113 Deferred revenue 2,385 1,862 Amortization 847 962 Stock-based compensation 2,773 3,138 Inventory 1,507 686 Capitalized R&D Costs 5,680 — Lease liability 10,856 5,464 Other deferred tax assets 1,370 2,340 Total deferred tax assets 111,016 88,108 Less: valuation allowances (103,243) (83,121) Net deferred tax assets 7,773 4,987 Deferred tax liabilities: Right-of-Use Assets (5,219) (2,867) Depreciation (2,244) (1,752) Amortization acquired intangibles (1,570) (2,208) Goodwill — (66) Other deferred tax liabilities (209) (129) Net deferred tax (liability) asset $ (1,469) $ (2,035) The Company’s change in its valuation allowance account with respect to the deferred tax asset is as follows (in thousands): 2022 2021 Balance, beginning of year $ 83,121 $ 63,609 Change in valuation allowance 20,122 19,512 Balance, end of year $ 103,243 $ 83,121 The valuation allowance increased during the year ended December 31, 2022 primarily as a result of the U.S. operating losses incurred and research and development tax credit carryforwards generated during the year. In determining the need for a valuation allowance, the Company has given consideration to the cumulative book income and loss positions of each of its entities as well as its worldwide cumulative book loss position. The Company has assessed, on a jurisdictional basis, the available means of recovering deferred tax assets, including the ability to carryback net operating losses (NOLs), the existence of reversing taxable temporary differences, the availability of tax planning strategies, and forecasted future taxable income. At December 31, 2022, the Company maintains a full valuation allowance against its worldwide net deferred tax assets. As of December 31, 2022, the Company had U.S. federal NOLs of approximately $309.7 million. U.S. federal NOLs generated through December 31, 2017 of approximately $108.5 million expire at various dates through 2037, and U.S. federal NOLs generated in the tax years beginning after December 31, 2017 of approximately $201.2 million do not expire. As of December 31, 2022, the Company had $207.4 million of state NOLs, approximately $197.4 million expire at various dates through 2042, and certain state NOLs of approximately $10.0 million do not expire. As of December 31, 2022, the Company had U.S. federal tax credit carryforwards of approximately $5.8 million that expire at various dates through 2042. As of December 31, 2022, the Company had U.S. state tax credit carryforwards of approximately $2.0 million that expire at various dates through 2037. Under Sections 382 and 383 of the U.S. Internal Revenue Code, if a corporation undergoes an ownership change, the corporation’s ability to use its pre-change NOLs and other pre-change tax attributes, such as research tax credits, to offset its post-change income and taxes may be limited. In general, an ownership change generally occurs if there is a cumulative change in its ownership by 5% stockholders that exceeds 50 percentage points over a rolling three-year period. Similar rules may apply under U.S. state tax laws. Under the Tax Cuts and Jobs Act of 2017 (TCJA), the use of federal NOLs arising in taxable years beginning after December 31, 2017 is limited to 80% of current year taxable income and NOLs arising in taxable years ending after December 31, 2017 may not be carried back (though any such NOLs may be carried forward indefinitely). The Company may have experienced an ownership change in the past and may experience ownership changes in the future as a result of future transactions in its share capital, some of which may be outside of the control of the Company. As a result, if the Company earns net taxable income, its ability to use its pre-change NOLs, or other pre-change tax attributes, to offset U.S. federal and state taxable income and taxes may be subject to significant limitations. The Company accounts for uncertain tax positions using a more likely than not threshold for recognizing uncertain tax positions. The evaluation of uncertain tax positions is based on factors that include, but are not limited to, changes in tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, new audit activity and changes in facts or circumstances related to a tax position. The Company evaluates uncertain tax positions on an ongoing basis and adjusts the level of the liability to reflect any subsequent changes in the relevant facts surrounding the uncertain positions. The Company accounts for interest and penalties related to uncertain tax positions as a component of its benefit (provision) for income taxes. For the years ended December 31, 2022, 2021, and 2020, the Company had no tax reserves accrued for uncertain tax positions and there were no accrued interest or penalties in the consolidated statements of operations. The Company is subject to taxation in the United States as well as the Netherlands, Sweden, and China. At December 31, 2022, the Company is generally no longer subject to examination by taxing authorities in the United States for years prior to 2019. However, NOLs and tax credits in the United States may be subject to adjustments by taxing authorities in future years in which they are utilized. The Company’s foreign subsidiaries remain open to examination by taxing authorities from 2013 onward. As of December 31, 2022, the Company’s foreign subsidiaries had immaterial undistributed earnings and the tax payable on the earnings that are indefinitely reinvested would be immaterial. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Stock-Based Compensation | |
Stock-Based Compensation | 10. Stock-Based Compensation Stock-based compensation Stock-based compensation expense for all stock awards consists of the following (in thousands): December 31, 2022 2021 2020 Cost of product revenue $ 608 $ 471 $ 189 Cost of service and other revenue 819 403 311 Research and development 1,639 1,807 1,129 Selling, general, and administrative 12,376 13,294 8,470 Total stock-based compensation $ 15,442 $ 15,975 $ 10,099 At December 31, 2022, there was $33.9 million of total unrecognized compensation cost related to unvested stock options and restricted stock units which is expected to be recognized over the remaining weighted-average vesting period of 2.9 years. Stock-based compensation plans In June 2007, the Company adopted the 2007 Stock Option and Grant Plan (the 2007 Plan), under which it could grant incentive stock options, non-qualified options, restricted stock, and stock grants. In connection with the completion of the Company’s IPO, the Company terminated the 2007 Plan. As of December 31, 2022, 207,464 shares were outstanding under the 2007 Plan, and no shares are available for future grant under the 2007 Plan. In December 2017, the Company adopted the 2017 Employee, Director and Consultant Equity Incentive Plan (the 2017 Plan), under which it may grant incentive stock options, non-qualified stock options, restricted stock, and other stock-based awards. As of December 31, 2017, the 2017 Plan allowed for the issuance of up to 1,042,314 shares of common stock plus up to 2,490,290 shares of common stock represented by awards granted under the 2007 Plan that are forfeited, expired, or are cancelled without delivery of shares or which result in the forfeiture of shares of common stock back to the Company on or after the date the 2017 Plan became effective. As of December 31, 2022, 3,168,278 shares were outstanding and there were 1,847,643 shares available for grant under the 2017 Plan. In addition, the 2017 Plan contains an “evergreen” provision, which allows for an annual increase in the number of shares of common stock available for issuance under the 2017 Plan on the first day of each fiscal year during the period beginning in fiscal year 2019 and ending in fiscal year 2027. The annual increase in the number of shares shall be equal to the lowest of: (i) 4% of the number of shares of common stock outstanding as of such date and (ii) an amount determined by the Company’s Board of Directors or Compensation Committee. On January 3, 2023, the number of shares of common stock available for issuance under the 2017 plan was increased by 1,488,696 shares in accordance with the 2017 Plan’s evergreen provision. In December 2017, the Company adopted the 2017 Employee Stock Purchase Plan (the 2017 ESPP). As of December 31, 2019, the 2017 ESPP allowed for the issuance of up to 612,572 shares of common stock. As of December 31, 2022, 1,447,467 shares were available for grant under the 2017 ESPP. In addition, the 2017 ESPP contains an “evergreen” provision, which allows for an increase on the first day of each fiscal year beginning with fiscal year 2018. The increase in the number of shares shall be equal to the lowest of: (i) 1% of the number of shares of common stock outstanding on the last day of the immediately preceding fiscal year and (ii) an amount determined by the Company’s Board of Directors or Compensation Committee. On January 3, 2023, the number of shares of common stock available for issuance under the 2017 ESPP was increased by 372,174 shares in accordance with the 2017 ESPP’s evergreen provision. The 2017 ESPP provides for six-month option periods commencing on March 1 and ending August 31 and commencing September 1 and ending February 28 of each calendar year. Stock options Under the 2017 Plan, stock options may not be granted with exercise prices of less than fair market value on the date of the grant. Options generally vest ratably over a four-year period with 25% vesting on the first anniversary and the remaining 75% vesting ratably on a monthly basis over the remaining three years. These options expire ten years after the grant date. Option activity is as follows: Weighted-average Remaining contractual Aggregate intrinsic value Options exercise price life (in years) (in thousands) Outstanding at December 31, 2021 2,204,813 $ 25.36 6.8 $ 44,813 Granted 1,507,452 $ 18.07 Exercised (243,792) $ 5.10 Cancelled (1,280,825) $ 28.63 Outstanding at December 31, 2022 2,187,648 $ 20.69 8.1 4,273 Exercisable at December 31, 2022 820,868 $ 22.92 5.8 1,566 Vested and expected to vest at December 31, 2022 2,187,648 $ 20.69 8.1 4,273 Restricted stock units Restricted stock units (RSUs) represent the right to receive shares of common stock upon meeting specified vesting requirements. A summary of RSU activity is as follows: Weighted-average Weighted-average Aggregate grant date fair remaining contractual intrinsic value Shares value per share life (in years) (in thousands) Unvested RSUs as of December 31, 2021 529,871 $ 49.32 9.7 $ 22,467 Granted 1,273,807 $ 18.32 Vested (200,078) $ 48.93 Cancelled (415,506) $ 34.94 Unvested RSUs as of December 31, 2022 1,188,094 21.18 9.6 $ 16,455 Expected to convert at December 31, 2022 1,188,094 $ 21.18 $ 16,455 |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings (Loss) Per Share | |
Earnings (Loss) Per Share | 11. Earnings (Loss) Per Share The following table presents the computation of basic and diluted earnings per share: Year Ended December 31, 2022 2021 2020 (in thousands, except share and per share data) Numerator: Net loss attributable to Quanterix Corporation ($ 96,700) ($ 57,688) ($ 31,530) Denominator: Weighted average shares of common stock outstanding, basic and diluted 36,990,965 35,997,473 29,589,132 Net loss per share attributable to Quanterix Corporation, basic and diluted ($ 2.61) ($ 1.60) ($ 1.07) In periods when the Company is in a net loss position, dilutive securities are excluded from the computation of diluted earnings per share because their inclusion would have an anti-dilutive effect. Thus, basic net loss per share is the same as diluted net loss per share. The following common share equivalents have been excluded from the calculation of diluted net loss per share: Year Ended December 31, 2022 2021 2020 Unvested restricted common stock and restricted stock units 701,707 531,473 518,387 Outstanding stock options 446,180 2,304,543 2,494,045 Outstanding common stock warrants — — 10,000 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Leases | 12. Leases Bedford Lease eight years and nine months In applying the ASC 842 transition guidance, the Bedford Lease has been assessed as an operating lease and the Company recorded ROU assets of $18.2 million and lease liability of $23.7 million on the effective date. The difference between the ROU and the lease liability was driven by the lease obligation incentive of $5.5 million. As part of the Restructuring Plan, the Company decided not to utilize these facilities as part of its own operations and intends to sublease the vacant space to recover a portion of the total cost. The Company’s decision to not utilize, and sublease, the leased asset triggered an impairment event. The impairment testing deemed all assets associated with the leased assets as one asset group. The impairment analysis evaluated the present value of net cash flows under the original lease and the estimated cash flows under the sublease to identify the impairment amount. The impairment assessment considered all industry and economic factors such as rental rates, interest rates and recent real estate activities to estimate the net cash flows analysis and impairment amount. For the year ended December 31, 2022, the Company recorded an impairment of $12.0 million to the right-of-use assets related to the Bedford facilities. No such impairment expenses were recognized for the years ended December 31, 2021 and 2020. Summary of all lease costs recognized under ASC 842 Total operating lease costs were $8.9 million, which includes $3.4 million of short term and variable lease costs for the year ended December 31, 2022. Total operating lease costs were $5.4 million and $4.8 million for the years ended December 31, 2021 and 2020, respectively. The fixed lease costs were $5.5 million, $5.4 million and $4.8 million for the years ended December 31, 2022, 2021 and 2020, respectively. Short-term lease costs and variable lease costs incurred by the Company for the years ended December 31, 2021 and 2020 were considered immaterial. Refer to table below for additional information related to operating leases under ASC 842: Year Ended December 31, Operating leases (in thousands) 2022 2021 Supplemental balance sheet information: Weighted average remaining lease term (years) 7.8 8.6 Weighted average discount rate 7.83% 9.73% Supplemental cash flow information: Operating cash flows used for operating leases $ 6,539 $ 3,388 Future minimum commitments under ASC 842 under the Company’s operating leases in effect at December 31, 2022 were as follows: Maturity of lease liabilities (in thousands) As of December 31, 2022 2023 $ 6,707 2024 7,064 2025 7,228 2026 7,408 2027 7,641 thereafter 23,621 Total lease payments $ 59,669 Less: imputed interest and lease incentive reimbursements 15,565 Total operating lease liabilities $ 44,104 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and contingencies | |
Commitments and contingencies | 13. Commitments and contingencies Purchase Commitments Stratec Other Purchase Commitments License Agreements Tufts University In June 2007, the Company entered into a license agreement (the License Agreement) for certain intellectual property with Tufts University (Tufts). Tufts is a related party to the Company due to Tufts’ equity ownership in the Company and because a board member of the Company’s Board of Directors was affiliated with Tufts. The License Agreement, which was subsequently amended, is exclusive and sub-licensable, and will continue in effect on a country by country basis as long as there is a valid claim of a licensed patent in a country. The Company is committed to pay license and maintenance fees, prior to commercialization, in addition to low single digit royalties on direct sales and services and a royalty on sublicense income. During the years ended December 31, 2022, 2021, and 2020, the Company recorded royalty expense of $1.4 million, $1.6 million and $1.1 million, respectively, related to Tufts. This royalty expense is recorded in cost of product revenue on the consolidated statements of operations. During the year ended December 31, 2020, the Company incurred $1.0 million in cost of collaboration and license revenue owed to Tufts related to sublicensing certain technology and intellectual property to Abbott Laboratories (Abbott), refer to Note 5 for additional details. Legal contingencies The Company is subject to claims in the ordinary course of business; however, the Company is not currently a party to any pending or threatened litigation, the outcome of which would be expected to have a material adverse effect on its financial condition or the results of its operations. The Company accrues for contingent liabilities to the extent that the liability is probable and estimable. |
Restructuring and Other Charges
Restructuring and Other Charges | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Other Charges | |
Restructuring and Other Charges | 14. Restructuring and Other Charges Following a strategic review and assessment of the Company’s operations and cost structure, on August 8, 2022, the Company announced a plan of restructuring and strategic re-alignment (the Restructuring Plan). As part of the Restructuring Plan, the Company began an assay redevelopment program with the ultimate objective of improving its ability to manufacture and deliver high-quality assays at scale. In accordance with the Restructuring Plan, the Company implemented a workforce reduction, which was substantially completed by the end of the third quarter of 2022. The Company recorded charges during the year ended December 31, 2022, consisting of one-time termination benefits for employee severance, benefits and related costs, all of which were cash expenditures. The following shows the number of positions by function and by location eliminated in connection with the Restructuring Plan: North America EMEA Asia Pacific Total Cost of goods sold 21 — — 21 Research and development 34 1 — 35 Selling, general and administrative 50 9 4 63 Total headcount 105 10 4 119 As part of the Restructuring Plan, the Company also performed an assessment of impairment for long-lived assets, including right-of-use assets, and recorded an impairment charge of $17.4 million. The impairment expense includes $16.3 million associated with the right-of-use and property and equipment at the Bedford facilities and $1.1 million for software costs related to projects that have been rationalized as part of the Restructuring Plan. Refer to Note 7 and Note 12 for further information. The following table presents the restructuring reserve and provision activity for the year ended December 31, 2022 (in thousands): Severance and Employee Benefit Costs Other Restructuring Charges Total Balance at January 1, 2022 $ — $ — $ — Charges 3,634 121 3,755 Cash payments (3,288) (121) (3,409) Foreign exchange (18) — (18) Balance at December 31, 2022 $ 328 $ — $ 328 No such restructuring activities existed for the years ended December 31, 2021 and 2020. |
Notes payable
Notes payable | 12 Months Ended |
Dec. 31, 2022 | |
Notes payable | |
Notes payable | 15. Notes payable Loan agreement On April 14, 2014, the Company executed a loan agreement with a lender, as subsequently amended. As of December 31, 2021, there were no additional amounts available to borrow under the debt facility. The interest rate on the term loan was variable based on the greater of 8% or 8% plus the prime rate less 5.25%. Interest was paid monthly beginning the month following the borrowing date. At loan inception and in connection with the amendments, the Company issued the lender warrants to purchase shares of stock. The loan agreement also contained prepayment penalties and an end of term charge. Fees incurred upon execution of the agreements, and the fair value of warrants on the date of grant were accounted for as a reduction in the book value of debt and accreted through interest expense, using the effective interest rate method, over the term of the debt. Under the amended agreement, the Company was required to pay the loan principal in four equal installments starting July 1, 2021, with the final payment and end of term charge to be made on October 1, 2021. On October 1, 2021, the Company made the final principal payment, including end of term fees, of $2.0 million related to the loan agreement. The Company has not executed any subsequent loan agreements and there were no outstanding loan balances during the year ended December 31, 2022. |
Employee benefit plans
Employee benefit plans | 12 Months Ended |
Dec. 31, 2022 | |
Employee benefit plans | |
Employee benefit plans | 16. Employee benefit plans The Company sponsors a 401(k) savings plan for employees. The Company may make discretionary contributions for each 401(k) plan year. During the years ended December 31, 2022, 2021, and 2020, the Company made contributions of $1.2 million, $1.1 million, and $0.7 million, respectively. |
Goodwill and intangible assets
Goodwill and intangible assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and intangible assets | |
Goodwill and intangible assets | 17. Goodwill and intangible assets During the third quarter of 2022, the Company identified certain indicators of impairment, including the significant decline in the Company’s stock price, actions taken under the Restructuring Plan and the reduction of forecasted sales and profitability. As a result, the Company performed an interim goodwill impairment test. It was determined that the Company’s goodwill was impaired as the carrying amount of the Company’s sole reporting unit exceeded the estimated fair value. The Company concluded that the entire goodwill balance was impaired and recognized a non-cash impairment charge during the third quarter of 2022. The changes in the carrying amount of goodwill are as follows (in thousands): Goodwill Balance as of December 31, 2021 $ 9,632 Impairment losses (8,220) Foreign exchange adjustments (1,412) Balance as of December 31, 2022 $ — Acquired intangible assets, principally originating from the acquisition of Uman, consist of the following (dollars in thousands): December 31, 2022 Estimated Cumulative Useful Gross Carrying Accumulated Translation Net Carrying Weighted Average Life (in years) Value Amortization Adjustment Value Life R emaining (in years) Know-how 8.5 $ 13,000 $ (4,763) $ (1,433) $ 6,804 5.0 Developed technology 7 1,650 (1,458) — 192 2.1 Customer relationships 8.5 - 10 1,360 (938) (12) 410 5.1 Non-compete agreements 5.5 340 (193) (37) 110 2.0 Trade names 3 50 (50) — — — Total $ 16,400 $ (7,402) $ (1,482) $ 7,516 December 31, 2021 Estimated Cumulative Useful Gross Carrying Accumulated Translation Net Carrying Weighted Average Life (in years) Value Amortization Adjustment Value Life R emaining (in years) Know-how 8.5 $ 13,000 $ (3,825) $ 241 $ 9,416 6.0 Developed technology 7 1,650 (1,277) — 373 3.1 Customer relationships 8.5 - 10 1,360 (792) 2 570 6.1 Non-compete agreements 5.5 340 (170) 5 175 3.0 Trade names 3 50 (50) — - — Total $ 16,400 $ (6,114) $ 248 $ 10,534 The Company recorded amortization expense of $1.8 million, $2.0 million, and $2.1 million for the years ended December 31, 2022, 2021, and 2020, respectively. Amortization of developed technology is recorded within research and development expenses, amortization of customer relationships is recorded within selling, general, and administrative expenses, amortization of trade names is recorded within selling, general, and administrative expenses, amortization of non-compete agreements is recorded within selling, general, and administrative expenses, and amortization of know-how is recorded within cost of goods sold. Future estimated amortization expense of acquired intangible assets as of December 31, 2022 is as follows (amounts in thousands): As of December 31, 2022 2023 $ 1,665 2024 1,584 2025 1,447 2026 1,420 2027 1,398 Thereafter 2 Total amortization expense $ 7,516 |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related party transactions | |
Related party transactions | 18. Related party transactions As described in Note 13, in June 2007, the Company entered into a license agreement for certain intellectual property with Tufts. Tufts is a related party to the Company due to Tufts’ equity ownership in the Company and because one of the Company’s directors was affiliated with Tufts. During the years ended December 31, 2022, 2021, and 2020, the Company recorded royalty expense of $1.4 million, $1.6 million and $1.1 million, respectively, related to Tufts. This royalty expense is recorded in cost of product revenue on the consolidated statements of operations. During the year ended December 31, 2020, the Company also incurred $1.0 million in cost of collaboration and license revenue owed to Tufts related to sublicensing certain technology and intellectual property to Abbott, refer to 5 for additional details. One of the Company’s directors is affiliated with Harvard University and Mass General Brigham. Revenue recorded from sales to Harvard University and its affiliates and to Mass General Brigham and its affiliates totaled $0.7 million, $0.2 million, $0.1 million for the years ended December 31, 2022, 2021, and 2020 respectively. The Company recorded cost of goods sold of $0.1 million for the year ended December 31, 2022 related to Harvard University and its affiliates and to Mass General Brigham and its affiliates, with immaterial cost of goods sold recorded for years ended December 31, 2021 and 2020. The Company also incurred research and development expenses of $0.6 million with Harvard University and its affiliates for the year ended December 31, 2022, with immaterial research and development expenses incurred for years ended December 31, 2021 and 2020. The Company had $0.1 million and $0.2 million in accounts receivable from Harvard University and its affiliates and Mass General Brigham and its affiliates at December 31, 2022 and 2021, respectively. Deferred revenue from Harvard University and its affiliates and Mass General Brigham and its affiliates was $0.1 million at both December 31, 2022 and 2021. On May 26, 2022, the Company entered into an agreement (the UltraDx Agreement) with UltraDx Limited (UltraDx), a new company formed by ARCH Venture Partners (ARCH). Under the UltraDx Agreement, the Company will supply HD-X instruments (both fully assembled and disassembled) as well as assays and assay components to UltraDx, and UltraDx has the non-exclusive right to seek Chinese regulatory approval of and to commercialize the HD-X instrument and related assays in the Chinese neurological in vitro diagnostic market. The Company has determined that UltraDx is a related party because one of the Company’s directors is affiliated with ARCH and UltraDx. Under the terms of the UltraDx Agreement, the Company shipped a total of ten fully assembled and disassembled HD-X instruments to UltraDx on June 30, 2022 at a purchase price of approximately $1.9 million. The Company recognized revenue on these shipments upon receipt of payment during the year ended December 31, 2022. No such activities occurred in the years ended December 31, 2021 and 2020. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Significant accounting policies | |
Principles of consolidation | Principles of consolidation The consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of Quanterix Corporation, and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. In making those estimates and assumptions, the Company bases its estimates on historical experience and on various other assumptions believed to be reasonable. The Company’s significant estimates included in the preparation of the consolidated financial statements are related to revenue recognition and valuation of inventory. Actual results could differ from those estimates. |
Reclassifications | Reclassifications |
Segment information | Segment information Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision-maker, the Company’s Chief Executive Officer, in deciding how to allocate resources and assess performance. The Company and the Company's chief operating decision-maker reviews the Company's operations and manages its business as a single operating segment. |
Cost of revenue | Cost of revenue Cost of goods sold for products consists of HD-X, HD-1, and SR-X instrument costs from the manufacturer and related reagents and other consumables. Cost of goods sold for SP-X consists of costs based on the internal assembly of this item. Raw material part costs; inbound freight, shipping and handling costs associated with purchased goods; contract manufacturer costs; personnel costs; royalties; overhead and other direct costs related to those sales are classified as cost of goods sold for products. Cost of service and other revenue consists of raw materials, personnel costs, royalties as well as overhead and other direct costs associated with operating the Accelerator Laboratory on behalf of customers, in addition to costs related to warranties and other costs of servicing equipment at customer sites. Cost of license revenue consists of license fees that are the direct results of cash payments received related to license agreements. |
Research and development expenses | Research and development expenses Research and development expenses, including personnel costs, allocated facility costs, lab supplies, outside services, contract laboratory costs are charged to research and development expense as incurred. The Company accounts for nonrefundable advance payments for goods and services that will be used in future research and development activities as expense when the service has been performed or when the goods have been received. Expenses incurred related to grant funded activities are recorded in research and development expense. |
Selling, general, and administrative expenses | Selling, general, and administrative expenses Selling, general and administrative expenses consist primarily of personnel costs for the Company’s sales and marketing, finance, legal, human resources and general management, costs associated with shipping and handling for product sales, other general and administrative costs, as well as professional services costs, such as marketing, advertising, legal and accounting services in addition to allocated overhead costs that include facility and other overhead costs. The classification of shipping and handling costs for product sales as selling, general, and administrative expenses varies from company to company with some companies recording these as selling, general and administrative expenses and others recording such expenses within costs of goods sold for products. To the extent the classification of these shipping and handling costs differs from the reporting approach used by other companies, the Company’s gross margins may not be comparable with those reported by such other companies. Shipping and handling costs for product sales included within selling, general and administrative expenses were $7.2 million, $6.9 million and $4.8 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
Net loss per share | Net loss per share Basic net loss per common share attributable to common stockholders is calculated by dividing the loss attributable to common stockholders by the weighted-average number of common shares. For purposes of the diluted net loss per share calculations, unvested restricted common stock, restricted stock units, common stock options, and warrants are considered to be potentially dilutive securities, but are excluded from the diluted net loss per share because their effect would be anti-dilutive and therefore basic and diluted net loss per share were the same for all periods presented. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash deposits and short-term, highly liquid investments that are readily convertible into cash, with original maturities of three months or less. Cash equivalents are carried at fair value based on quoted prices for identical assets. Cash and cash equivalents consist of the following (in thousands): As of December 31, 2022 2021 Cash $ 32,643 $ 64,372 Money market funds invested in U.S. Treasury obligations 306,097 332,093 Total cash and cash equivalents $ 338,740 $ 396,465 |
Restricted cash and deposits | Restricted cash and deposits Restricted cash primarily represents collateral for a letter of credit issued as security for the lease for the Company’s headquarters in Billerica, Massachusetts, and additional space in Bedford, Massachusetts, and to secure the Company’s corporate credit card program. The restricted cash is long term in nature as the Company will not have access to the funds until more than one year from December 31, 2022. |
Inventory | Inventory Inventory is stated at the lower of cost or market on a first-in, first-out (FIFO) basis. The Company analyzes its inventory levels on each reporting date and writes down inventory that is expected to expire prior to being sold and inventory in excess of expected sales requirements. In the event that the Company identifies these conditions exist in its inventory, the carrying value is reduced to its estimated net realizable value. |
Property and equipment | Property and equipment Property and equipment, including leasehold improvements, are stated at cost and are depreciated, or amortized in the case of leasehold improvements, over their estimated useful lives using the straight-line method. Expenditures for maintenance and repairs are charged to expense as incurred, whereas major betterments are capitalized as additions to property and equipment. The Company reviews its property and equipment whenever events or changes in circumstances indicate that the carrying value of certain assets might not be recoverable and recognizes an impairment loss when it is probable that an asset’s realizable value is less than the carrying value. The Company recorded impairment expenses during the year-end December 31, 2022. Refer to Note 7 for additional details. Depreciation is calculated based upon the following estimated useful lives of the assets: Laboratory and manufacturing equipment Five years Computers and software Three years Office furniture and equipment Seven years Leasehold improvements Shorter of the useful life of the asset or the remaining term of the lease |
Leases | Leases The Company accounts for leases in accordance with ASC Topic 842, Leases Operating lease liabilities and their corresponding ROU assets are initially recorded based on the present value of lease payments over the expected remaining lease term. The rate implicit in lease contracts is typically not readily determinable and, as a result, the Company utilizes its incremental borrowing rate to discount lease payments, which reflects the fixed rate at which the Company could borrow on a collateralized basis the amount of the lease payments, for a similar term, in a similar economic environment. To estimate its incremental borrowing rate, a credit rating applicable to the Company is estimated using a synthetic credit rating analysis since the Company does not currently have a rating agency-based credit rating. |
Software development costs | Software development costs The Company develops and modifies software related to the operation of some of its instruments. Software development costs are expensed as incurred until the point the Company establishes technological feasibility. Based on the Company’s product development process, technological feasibility is established upon the completion of a working model. The Company does not incur material costs between the completion of the working model and the point at which the product is ready for release. Therefore, software development costs are charged to the statement of operations as incurred as research and development expense. |
Fair value of financial instruments | ASC Topic 820, Fair Value Measurement ASC 820 identifies fair value as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a three-tier fair value hierarchy that distinguishes between the following: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; and Level 3 inputs are unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The carrying amount reflected on the balance sheets for cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities approximated their fair values, due to the short-term nature of these instruments. Fair value measurements are as follows (in thousands): Quoted prices Significant in active Significant other unobservable markets observable inputs December 31, 2022 Total (Level 1) inputs (Level 2) (Level 3) Financial assets Cash equivalents - money market funds $ 306,097 $ 306,097 $ — $ — Quoted prices Significant Significant in active other unobservable markets observable inputs December 31, 2021 Total (Level 1) inputs (Level 2) (Level 3) Financial assets Cash equivalents - money market funds $ 332,093 $ 332,093 $ — $ — |
Warranties | Warranties The Company provides a one-year warranty and maintenance service related to its instruments and sells extended warranty contracts for additional periods. The Company defers revenue associated with these services and recognizes them on a pro-rata basis over the period of service. |
Income taxes | Income taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on differences between the consolidated financial statement carrying amounts and the tax bases of the assets and liabilities using the enacted tax rates in effect in the years in which the differences are expected to reverse. A valuation allowance against deferred tax assets is recorded if, based on the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740 Income Taxes |
Credit, product, and supplier concentrations and off-balance-sheet risk | Credit, product, and supplier concentrations and off-balance-sheet risk The Company has no significant off-balance-sheet risk, such as foreign exchange contracts, option contracts, or other hedging arrangements. Financial instruments that potentially expose the Company to concentrations of credit risk primarily consist of cash and cash equivalents and a cost method investment. The Company places its cash and cash equivalents principally in depository accounts with a bank. The Company is also subject to supply chain risks related to the outsourcing of the manufacturing of its instruments. Although there are a limited number of manufacturers for instruments of this type, the Company believes that other suppliers could provide similar products on comparable terms. A change in suppliers, however, could cause a delay in manufacturing and a possible loss of sales, which would adversely affect operating results. In addition to outsourcing the manufacturing of its instruments, the Company also purchases antibodies through a number of different suppliers. Although a disruption in service from any one of its antibody suppliers is possible, the Company believes that it would be able to find an adequate supply from alternative suppliers. Customers outside the United States represented 41% and 39% of the Company’s gross trade accounts receivable balance as of December 31, 2022, and 2021, respectively. For the year ended December 31, 2022, one customer of approximately $13.7 million revenue accounted for 13% of the Company’s total revenue. For the year ended December 31, 2021, no customers individually accounted for more than 10% of the Company’s total revenue. |
Stock-based compensation | Stock-based compensation The Company accounts for stock-based compensation awards in accordance with ASC 718, Compensation—Stock Compensation options and restricted stock units. Stock-based compensation costs for employees are recognized as expense over the requisite service period, which is generally the vesting period of the respective awards. The Company recognizes forfeitures as they occur. The Company estimates the grant date fair value, and the resulting stock-based compensation expense, using the Black-Scholes option-pricing model. The fair value of stock options granted to employees and non-employees is estimated on the grant date using the Black-Scholes option-pricing model, based on the assumptions noted in the following table: Year Ended December 31, 2022 2021 2020 Risk-free interest rate 1.4% - 4.1% 0.4% - 1.3% 0.4% - 1.7% Expected dividend yield None None None Expected term (in years) 5.0 - 5.8 6.0 6.0 Expected volatility 55.0% - 70.8% 49.2% - 55.6% 43.9% - 49.2% Weighted-average grant date fair value $ 9.88 $ 29.96 $ 12.66 The Company uses its historical volatility and implied volatility as a basis to estimate expected volatility in the Company’s valuation of stock options. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant, commensurate with the expected term assumption. The Company estimates the expected term of options granted to employees utilizing the simplified method which calculates the expected term of an option as the average of the time to vesting and contractual life of the options. The expected term is applied to the stock option grant group as a whole, as the Company does not expect substantially different exercise or post-vesting termination behavior among its employee population. The Company used the simplified method due to the lack of historical exercise data and the plain nature of the stock options. The Company uses the remaining contractual term for the expected term of non-employee awards. The expected dividend yield is assumed to be zero as the Company has never paid dividends and has no current plans to pay any dividends on common stock. |
Recently Issued Accounting Pronouncements | Recent accounting pronouncements Adopted In June 2016, the Financial Accounting Standards Board (FASB) established Topic 326 , Financial Instruments — Credit Losses: Measurement of Credit Losses on Financial Instruments In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . This ASU addresses the accounting for implementation, setup and other upfront costs paid by a customer in a cloud computing or hosting arrangement. The guidance aligns the accounting treatment of these costs incurred in a hosting arrangement treated as a service contract with the requirements for capitalization and amortization costs to develop or obtain internal-use software. The Company adopted ASU 2018-15 on January 1, 2021 using the prospective method. The adoption of ASU 2018-15 did not have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes Income Taxes 12 removes certain exceptions for performing intra period tax allocations and calculating income taxes in interim periods. The guidance also simplifies the accounting for transactions that result in a step-up in the tax basis of goodwill and the effect of enacted changes in tax laws or rates in interim periods. The Company early adopted ASU 2019-12 on January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on the Company’s consolidated financial statements. |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Significant accounting policies | |
Schedule of cash and cash equivalents | Cash and cash equivalents consist of the following (in thousands): As of December 31, 2022 2021 Cash $ 32,643 $ 64,372 Money market funds invested in U.S. Treasury obligations 306,097 332,093 Total cash and cash equivalents $ 338,740 $ 396,465 |
Schedule of estimated useful lives | Laboratory and manufacturing equipment Five years Computers and software Three years Office furniture and equipment Seven years Leasehold improvements Shorter of the useful life of the asset or the remaining term of the lease |
Schedule of fair value measurements | Fair value measurements are as follows (in thousands): Quoted prices Significant in active Significant other unobservable markets observable inputs December 31, 2022 Total (Level 1) inputs (Level 2) (Level 3) Financial assets Cash equivalents - money market funds $ 306,097 $ 306,097 $ — $ — Quoted prices Significant Significant in active other unobservable markets observable inputs December 31, 2021 Total (Level 1) inputs (Level 2) (Level 3) Financial assets Cash equivalents - money market funds $ 332,093 $ 332,093 $ — $ — |
Summary of fair value of stock options granted to employees and non-employees is estimated on the grant date using the Black-Scholes option-pricing model | Year Ended December 31, 2022 2021 2020 Risk-free interest rate 1.4% - 4.1% 0.4% - 1.3% 0.4% - 1.7% Expected dividend yield None None None Expected term (in years) 5.0 - 5.8 6.0 6.0 Expected volatility 55.0% - 70.8% 49.2% - 55.6% 43.9% - 49.2% Weighted-average grant date fair value $ 9.88 $ 29.96 $ 12.66 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue | |
Schedule of disaggregated revenue | Year Ended December 31, 2022 (in thousands) North America EMEA Asia Pacific Total Product revenues: Instruments $ 9,254 8,362 7,388 $ 25,004 Consumable and other products 25,894 14,514 4,396 44,804 Total $ 35,148 $ 22,876 $ 11,784 $ 69,808 Service and other revenues: Service-type warranties $ 5,581 $ 2,779 $ 480 $ 8,840 Research services 22,493 1,013 147 23,653 Other services 1,144 722 136 2,002 Total $ 29,218 $ 4,514 $ 763 $ 34,495 Collaboration and license revenue: Collaboration and license revenue $ 274 $ 323 $ 52 $ 649 Year Ended December 31, 2021 (in thousands) North America EMEA Asia Pacific Total Product revenues: Instruments $ 12,138 $ 8,178 $ 5,657 $ 25,973 Consumable and other products 34,997 16,122 3,970 55,089 Total $ 47,135 $ 24,300 $ 9,627 $ 81,062 Service and other revenues: Service-type warranties $ 4,334 $ 2,039 $ 255 $ 6,628 Research services 12,101 2,600 124 14,825 Other services 1,372 695 109 2,176 Total $ 17,807 $ 5,334 $ 488 $ 23,629 Collaboration and license revenue: Collaboration and license revenue $ 360 $ 288 $ — $ 648 Year Ended December 31, 2020 (in thousands) North America EMEA Asia Pacific Total Product revenues: Instruments $ 8,680 $ 4,332 $ 3,594 $ 16,606 Consumable and other products 14,305 10,854 2,252 27,411 Total $ 22,985 $ 15,186 $ 5,846 $ 44,017 Service and other revenues: Service-type warranties $ 3,171 $ 1,543 $ 207 $ 4,921 Research services 15,011 2,225 737 17,973 Other services 700 435 100 1,235 Total $ 18,882 $ 4,203 $ 1,044 $ 24,129 Collaboration and license revenue: Collaboration and license revenue $ 11,685 $ 124 $ — $ 11,809 |
Schedule of changes in deferred revenue from contracts with customers | Changes in deferred revenue from contracts with customers were as follows (in thousands): Year Ended December 31, 2022 Balance at December 31, 2021 $ 7,460 Deferral of revenue 11,444 Recognition of deferred revenue (8,845) Balance at December 31, 2022 $ 10,059 |
Schedule of costs to obtain a contract | 2022 Balance at January 1 $ 440 Deferral of costs to obtain a contract 1,387 Recognition of costs to obtain a contract (1,450) Balance at December 31 $ 377 |
Schedule of summary of the activity under WP2 | The following table summarizes the cumulative activity under the RADx Grant (in thousands): December 31, 2022 December 31, 2021 December 31, 2020 Total grant revenue from research and development activities $ 9,576 $ 9,576 $ 4,362 Total proceeds used for assets 8,624 8,104 826 Total deferred proceeds for assets — — 2,478 Total deferred grant revenue — — 304 Total recognized $ 18,200 $ 17,680 $ 7,970 Total recognized $ 18,200 $ 17,680 $ 7,970 Total amount accrued — — (2,968) Total cash received $ 18,200 $ 17,680 $ 5,002 Total proceeds received $ 18,200 $ 17,680 $ 5,002 Total proceeds reasonably assured — 520 13,198 Total RADx Grant amount $ 18,200 $ 18,200 $ 18,200 |
Allowance for credit Losses (Ta
Allowance for credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Allowance for credit Losses | |
Schedule of the allowance for credit losses | 2022 2021 2020 Balance at January 1 $ 419 $ 370 $ 162 Provision charges 752 213 493 Deductions (1,053) (164) (285) Balance at December 31 $ 118 $ 419 $ 370 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory | |
Summary of inventory | Inventory consists of the following (in thousands): As of December 31, 2022 2021 Raw materials $ 5,509 $ 7,892 Work in process 3,362 4,923 Finished goods 7,915 9,375 Total $ 16,786 $ 22,190 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property and equipment | |
Schedule of Property and equipment | Property and equipment consists of the following (in thousands): As of December 31, 2022 2021 Laboratory and manufacturing equipment $ 11,806 $ 9,742 Office furniture and equipment 1,798 1,617 Computers and software 3,831 3,893 Leasehold improvements 13,688 10,413 Total cost $ 31,123 $ 25,665 Less: accumulated depreciation (10,961) (7,705) Property and equipment, net $ 20,162 $ 17,960 |
Other accrued expenses (Tables)
Other accrued expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other accrued expenses | |
Summary of other accrued expenses | Other accrued expenses consist of the following (in thousands): As of December 31, 2022 2021 Royalties $ 815 $ 1,250 Professional and outside services 1,409 2,126 Tax liabilities 172 430 Other 2,351 2,680 Total accrued expenses $ 4,747 $ 6,486 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income taxes | |
Schedule of components of loss before income taxes | The following table presents the components of loss before income taxes (in thousands): Year Ended December 31, 2022 2021 2020 United States $ (89,590) $ (56,554) $ (29,896) Foreign (7,045) (1,170) (2,010) Total loss before income taxes $ (96,635) $ (57,724) $ (31,906) |
Schedule of provision for (benefit from) income taxes | The following table summarizes income tax (expense) benefit (in thousands): Year Ended December 31, 2022 2021 2020 Current: United States Federal $ — $ — $ — State (77) (30) (13) Foreign (368) (342) (102) Total current income tax provision (445) (372) (115) Deferred United States Federal 10 5 (8) State 13 (6) (3) Foreign 357 409 502 Total deferred income tax benefit 380 408 491 Total income tax (expense) benefit $ (65) $ 36 $ 376 |
Schedule of reconciliation of the federal statutory income tax rate to the effective tax rate | Year Ended December 31, 2022 2021 2020 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % Foreign tax rate differential — % — % 0.30 % State taxes, net of federal benefit 2.7 % 6.5 % 2.5 % Tax credits 1.4 % 2.0 % 1.6 % Share-based compensation (2.5) % 7.4 % 5.2 % Permanent items (0.3) % (1.8) % (0.4) % Deferred tax rate change — % 0.2 % 0.3 % Change in valuation allowance (20.8) % (34.8) % (29.7) % Impairment of goodwill (1.7) % — % — % Other 0.0 % (0.4) % 0.4 % Effective income tax rate (0.2) % 0.1 % 1.2 % |
Schedule of deferred tax assets and liabilities | Deferred tax assets and liabilities reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands): December 31, 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 78,191 $ 67,543 Tax credits 7,407 6,113 Deferred revenue 2,385 1,862 Amortization 847 962 Stock-based compensation 2,773 3,138 Inventory 1,507 686 Capitalized R&D Costs 5,680 — Lease liability 10,856 5,464 Other deferred tax assets 1,370 2,340 Total deferred tax assets 111,016 88,108 Less: valuation allowances (103,243) (83,121) Net deferred tax assets 7,773 4,987 Deferred tax liabilities: Right-of-Use Assets (5,219) (2,867) Depreciation (2,244) (1,752) Amortization acquired intangibles (1,570) (2,208) Goodwill — (66) Other deferred tax liabilities (209) (129) Net deferred tax (liability) asset $ (1,469) $ (2,035) |
Summary of Valuation Allowance | The Company’s change in its valuation allowance account with respect to the deferred tax asset is as follows (in thousands): 2022 2021 Balance, beginning of year $ 83,121 $ 63,609 Change in valuation allowance 20,122 19,512 Balance, end of year $ 103,243 $ 83,121 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stock-Based Compensation | |
Summary of share-based compensation expense for all stock awards | Stock-based compensation expense for all stock awards consists of the following (in thousands): December 31, 2022 2021 2020 Cost of product revenue $ 608 $ 471 $ 189 Cost of service and other revenue 819 403 311 Research and development 1,639 1,807 1,129 Selling, general, and administrative 12,376 13,294 8,470 Total stock-based compensation $ 15,442 $ 15,975 $ 10,099 |
Summary of stock option activity | Weighted-average Remaining contractual Aggregate intrinsic value Options exercise price life (in years) (in thousands) Outstanding at December 31, 2021 2,204,813 $ 25.36 6.8 $ 44,813 Granted 1,507,452 $ 18.07 Exercised (243,792) $ 5.10 Cancelled (1,280,825) $ 28.63 Outstanding at December 31, 2022 2,187,648 $ 20.69 8.1 4,273 Exercisable at December 31, 2022 820,868 $ 22.92 5.8 1,566 Vested and expected to vest at December 31, 2022 2,187,648 $ 20.69 8.1 4,273 |
Summary of restricted stock units activity | Weighted-average Weighted-average Aggregate grant date fair remaining contractual intrinsic value Shares value per share life (in years) (in thousands) Unvested RSUs as of December 31, 2021 529,871 $ 49.32 9.7 $ 22,467 Granted 1,273,807 $ 18.32 Vested (200,078) $ 48.93 Cancelled (415,506) $ 34.94 Unvested RSUs as of December 31, 2022 1,188,094 21.18 9.6 $ 16,455 Expected to convert at December 31, 2022 1,188,094 $ 21.18 $ 16,455 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings (Loss) Per Share | |
Schedule of basic and diluted shares | Year Ended December 31, 2022 2021 2020 (in thousands, except share and per share data) Numerator: Net loss attributable to Quanterix Corporation ($ 96,700) ($ 57,688) ($ 31,530) Denominator: Weighted average shares of common stock outstanding, basic and diluted 36,990,965 35,997,473 29,589,132 Net loss per share attributable to Quanterix Corporation, basic and diluted ($ 2.61) ($ 1.60) ($ 1.07) |
Schedule of common share equivalents have been excluded from the calculation of diluted net loss per share | Year Ended December 31, 2022 2021 2020 Unvested restricted common stock and restricted stock units 701,707 531,473 518,387 Outstanding stock options 446,180 2,304,543 2,494,045 Outstanding common stock warrants — — 10,000 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Summary of the lease costs recognized under ASC 842 | Refer to table below for additional information related to operating leases under ASC 842: Year Ended December 31, Operating leases (in thousands) 2022 2021 Supplemental balance sheet information: Weighted average remaining lease term (years) 7.8 8.6 Weighted average discount rate 7.83% 9.73% Supplemental cash flow information: Operating cash flows used for operating leases $ 6,539 $ 3,388 |
Schedule of future minimum commitments under ASC 842 | Future minimum commitments under ASC 842 under the Company’s operating leases in effect at December 31, 2022 were as follows: Maturity of lease liabilities (in thousands) As of December 31, 2022 2023 $ 6,707 2024 7,064 2025 7,228 2026 7,408 2027 7,641 thereafter 23,621 Total lease payments $ 59,669 Less: imputed interest and lease incentive reimbursements 15,565 Total operating lease liabilities $ 44,104 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Other Charges | |
Schedule of number of positions by function and by location eliminated by the Restructuring | North America EMEA Asia Pacific Total Cost of goods sold 21 — — 21 Research and development 34 1 — 35 Selling, general and administrative 50 9 4 63 Total headcount 105 10 4 119 |
Schedule of rollforward of the restructuring reserve and provision activity | The following table presents the restructuring reserve and provision activity for the year ended December 31, 2022 (in thousands): Severance and Employee Benefit Costs Other Restructuring Charges Total Balance at January 1, 2022 $ — $ — $ — Charges 3,634 121 3,755 Cash payments (3,288) (121) (3,409) Foreign exchange (18) — (18) Balance at December 31, 2022 $ 328 $ — $ 328 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and intangible assets | |
Rollforward of goodwill balance | Goodwill Balance as of December 31, 2021 $ 9,632 Impairment losses (8,220) Foreign exchange adjustments (1,412) Balance as of December 31, 2022 $ — |
Summary of intangible assets | Acquired intangible assets, principally originating from the acquisition of Uman, consist of the following (dollars in thousands): December 31, 2022 Estimated Cumulative Useful Gross Carrying Accumulated Translation Net Carrying Weighted Average Life (in years) Value Amortization Adjustment Value Life R emaining (in years) Know-how 8.5 $ 13,000 $ (4,763) $ (1,433) $ 6,804 5.0 Developed technology 7 1,650 (1,458) — 192 2.1 Customer relationships 8.5 - 10 1,360 (938) (12) 410 5.1 Non-compete agreements 5.5 340 (193) (37) 110 2.0 Trade names 3 50 (50) — — — Total $ 16,400 $ (7,402) $ (1,482) $ 7,516 December 31, 2021 Estimated Cumulative Useful Gross Carrying Accumulated Translation Net Carrying Weighted Average Life (in years) Value Amortization Adjustment Value Life R emaining (in years) Know-how 8.5 $ 13,000 $ (3,825) $ 241 $ 9,416 6.0 Developed technology 7 1,650 (1,277) — 373 3.1 Customer relationships 8.5 - 10 1,360 (792) 2 570 6.1 Non-compete agreements 5.5 340 (170) 5 175 3.0 Trade names 3 50 (50) — - — Total $ 16,400 $ (6,114) $ 248 $ 10,534 |
Schedule of future estimated amortization expense of acquired intangible assets | Future estimated amortization expense of acquired intangible assets as of December 31, 2022 is as follows (amounts in thousands): As of December 31, 2022 2023 $ 1,665 2024 1,584 2025 1,447 2026 1,420 2027 1,398 Thereafter 2 Total amortization expense $ 7,516 |
Organization and operations (De
Organization and operations (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 12 Months Ended | ||||
Feb. 03, 2021 | Aug. 06, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Initial Public Offering | |||||
Common stock, par value | $ 0.001 | $ 0.001 | |||
Accumulated deficit | $ (402,162) | $ (305,462) | |||
Net loss | (96,700) | (57,688) | $ (31,530) | ||
Unrestricted cash and cash equivalents | $ 338,740 | 396,465 | 181,584 | ||
Underwritten public offering | |||||
Initial Public Offering | |||||
Issuance of common stock (in shares) | 4.1 | 3 | |||
Common stock, par value | $ 0.001 | $ 0.001 | |||
Gross proceeds | $ 287,500 | $ 97,600 | |||
Stock issuance cost | 17,800 | 6,200 | |||
Sale of common stock in underwritten public offering, net | $ 269,700 | $ 91,400 | $ 269,718 | $ 91,404 |
Significant accounting polici_4
Significant accounting policies - Selling, general, and administrative expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Significant accounting policies | |||
Selling, general and administrative expenses | $ 7.2 | $ 6.9 | $ 4.8 |
Significant accounting polici_5
Significant accounting policies - Cash and cash equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and Cash equivalents | |||
Cash | $ 32,643 | $ 64,372 | |
Money market funds invested in U.S. Treasury obligations | 306,097 | 332,093 | |
Total cash and cash equivalents | $ 338,740 | $ 396,465 | $ 181,584 |
Significant accounting polici_6
Significant accounting policies - Property and equipment (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Laboratory and manufacturing equipment | |
Property and equipment | |
Estimated useful life (in years) | 5 years |
Computers and software | |
Property and equipment | |
Estimated useful life (in years) | 3 years |
Office furniture and equipment | |
Property and equipment | |
Estimated useful life (in years) | 7 years |
Significant accounting polici_7
Significant accounting policies - Fair value of financial instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair value of financial instruments | ||
Cash equivalents - money market funds | $ 306,097 | $ 332,093 |
Level 1 | ||
Fair value of financial instruments | ||
Cash equivalents - money market funds | $ 306,097 | $ 332,093 |
Significant accounting polici_8
Significant accounting policies - Warranties (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Significant accounting policies | |
Warranty period (in years) | 1 year |
Significant accounting polici_9
Significant accounting policies - Credit, product and supplier concentrations and off-balance-sheet risk (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Concentration Risk | |||
Revenue | $ 105,522 | $ 110,556 | $ 86,377 |
Accounts Receivable | Customer Concentration Risk | Customers outside the United States | |||
Concentration Risk | |||
Concentration risk (in percent) | 41% | 39% | |
Revenue. | Customer Concentration Risk | One customer | |||
Concentration Risk | |||
Concentration risk (in percent) | 13% | ||
Revenue | $ 13,700 | ||
Revenue. | Customer Concentration Risk | Customer | |||
Concentration Risk | |||
Concentration risk (in percent) | 10% |
Significant accounting polic_10
Significant accounting policies - Stock-based compensation (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
New Accounting Pronouncement, Early Adoption | |||
Expected dividend yield | 0% | 0% | 0% |
Expected term (in years) | 6 years | 6 years | |
Weighted-average grant date fair value | $ 9.88 | $ 29.96 | $ 12.66 |
Minimum | |||
New Accounting Pronouncement, Early Adoption | |||
Risk-free interest rate | 1.40% | 0.40% | 0.40% |
Expected term (in years) | 5 years | ||
Expected volatility | 55% | 49.20% | 43.90% |
Maximum | |||
New Accounting Pronouncement, Early Adoption | |||
Risk-free interest rate | 4.10% | 1.30% | 1.70% |
Expected term (in years) | 5 years 9 months 18 days | ||
Expected volatility | 70.80% | 55.60% | 49.20% |
Revenue - Customers and service
Revenue - Customers and service and other revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue recognition | ||||
Service type warranties term | 1 year | |||
Revenue | $ 105,522 | $ 110,556 | $ 86,377 | |
Service and other revenue | ||||
Revenue recognition | ||||
Revenue | 34,495 | 23,629 | 24,129 | |
Service-type warranties | ||||
Revenue recognition | ||||
Revenue | 8,840 | 6,628 | 4,921 | |
Research services | ||||
Revenue recognition | ||||
Revenue | 23,653 | 14,825 | 17,973 | |
Other services | ||||
Revenue recognition | ||||
Revenue | 2,002 | $ 2,176 | $ 1,235 | |
Collaboration agreement | Service and other revenue | ||||
Revenue recognition | ||||
Revenue | 10,900 | |||
Collaboration agreement | Eli Lilly | ||||
Revenue recognition | ||||
Termination notice | 100 days | |||
Transaction price due | 10,900 | |||
Master collaboration agreement | Eli Lilly | ||||
Revenue recognition | ||||
Non-refundable up-front payment received | $ 5,000 | |||
Statement of works agreement | Eli Lilly | ||||
Revenue recognition | ||||
Collaborative arrangement payment received per quarter | $ 1,500 | |||
Minimum | ||||
Revenue recognition | ||||
Period of payment | 30 days | |||
Maximum | ||||
Revenue recognition | ||||
Period of payment | 45 days |
Revenue - Disaggregated revenue
Revenue - Disaggregated revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue recognition | |||
Total revenue | $ 105,522 | $ 110,556 | $ 86,377 |
Product revenue | |||
Revenue recognition | |||
Total revenue | 69,808 | 81,062 | 44,017 |
Product revenue | NA | |||
Revenue recognition | |||
Total revenue | 35,148 | 47,135 | 22,985 |
Product revenue | EMEA | |||
Revenue recognition | |||
Total revenue | 22,876 | 24,300 | 15,186 |
Product revenue | Asia Pacific | |||
Revenue recognition | |||
Total revenue | 11,784 | 9,627 | 5,846 |
Instruments | |||
Revenue recognition | |||
Total revenue | 25,004 | 25,973 | 16,606 |
Instruments | NA | |||
Revenue recognition | |||
Total revenue | 9,254 | 12,138 | 8,680 |
Instruments | EMEA | |||
Revenue recognition | |||
Total revenue | 8,362 | 8,178 | 4,332 |
Instruments | Asia Pacific | |||
Revenue recognition | |||
Total revenue | 7,388 | 5,657 | 3,594 |
Consumable and other products | |||
Revenue recognition | |||
Total revenue | 44,804 | 55,089 | 27,411 |
Consumable and other products | NA | |||
Revenue recognition | |||
Total revenue | 25,894 | 34,997 | 14,305 |
Consumable and other products | EMEA | |||
Revenue recognition | |||
Total revenue | 14,514 | 16,122 | 10,854 |
Consumable and other products | Asia Pacific | |||
Revenue recognition | |||
Total revenue | 4,396 | 3,970 | 2,252 |
Service and other revenue | |||
Revenue recognition | |||
Total revenue | 34,495 | 23,629 | 24,129 |
Service and other revenue | NA | |||
Revenue recognition | |||
Total revenue | 29,218 | 17,807 | 18,882 |
Service and other revenue | EMEA | |||
Revenue recognition | |||
Total revenue | 4,514 | 5,334 | 4,203 |
Service and other revenue | Asia Pacific | |||
Revenue recognition | |||
Total revenue | 763 | 488 | 1,044 |
Service-type warranties | |||
Revenue recognition | |||
Total revenue | 8,840 | 6,628 | 4,921 |
Service-type warranties | NA | |||
Revenue recognition | |||
Total revenue | 5,581 | 4,334 | 3,171 |
Service-type warranties | EMEA | |||
Revenue recognition | |||
Total revenue | 2,779 | 2,039 | 1,543 |
Service-type warranties | Asia Pacific | |||
Revenue recognition | |||
Total revenue | 480 | 255 | 207 |
Research services | |||
Revenue recognition | |||
Total revenue | 23,653 | 14,825 | 17,973 |
Research services | NA | |||
Revenue recognition | |||
Total revenue | 22,493 | 12,101 | 15,011 |
Research services | EMEA | |||
Revenue recognition | |||
Total revenue | 1,013 | 2,600 | 2,225 |
Research services | Asia Pacific | |||
Revenue recognition | |||
Total revenue | 147 | 124 | 737 |
Other services | |||
Revenue recognition | |||
Total revenue | 2,002 | 2,176 | 1,235 |
Other services | NA | |||
Revenue recognition | |||
Total revenue | 1,144 | 1,372 | 700 |
Other services | EMEA | |||
Revenue recognition | |||
Total revenue | 722 | 695 | 435 |
Other services | Asia Pacific | |||
Revenue recognition | |||
Total revenue | 136 | 109 | 100 |
Collaboration and license revenue | |||
Revenue recognition | |||
Total revenue | 649 | 648 | 11,809 |
Collaboration and license revenue | NA | |||
Revenue recognition | |||
Total revenue | 274 | 360 | 11,685 |
Collaboration and license revenue | EMEA | |||
Revenue recognition | |||
Total revenue | 323 | $ 288 | $ 124 |
Collaboration and license revenue | Asia Pacific | |||
Revenue recognition | |||
Total revenue | $ 52 |
Revenue - Changes in deferred r
Revenue - Changes in deferred revenue from contracts with customers (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Changes in deferred revenue from contracts with customers | |
Balance at beginning of period | $ 7,460 |
Deferral of revenue | 11,444 |
Recognition of deferred revenue | (8,845) |
Balance at end of period | $ 10,059 |
Revenue - Future performance ob
Revenue - Future performance obligations (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Transaction Price Allocated to Future Performance Obligations | |
Amount of transaction price allocated to performance obligations | $ 10.1 |
Service-type warranties and research services | |
Transaction Price Allocated to Future Performance Obligations | |
Amount of transaction price allocated to performance obligations | 9.6 |
Undelivered licenses of intellectual property | |
Transaction Price Allocated to Future Performance Obligations | |
Amount of transaction price allocated to performance obligations | 0.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Transaction Price Allocated to Future Performance Obligations | |
Amount of transaction price allocated to performance obligations | $ 8.6 |
Performance obligation satisfaction period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Transaction Price Allocated to Future Performance Obligations | |
Amount of transaction price allocated to performance obligations | $ 1.5 |
Performance obligation satisfaction period | 24 months |
Revenue - Costs to obtain a con
Revenue - Costs to obtain a contract (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Change in the balance of costs to obtain a contract | |
Balance at beginning of period | $ 440 |
Deferral of costs to obtain a contract | 1,387 |
Recognition of costs to obtain a contract | (1,450) |
Balance at end of period | $ 377 |
Revenue - Practical expedients
Revenue - Practical expedients (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue | |
Revenue, Practical Expedient, Financing Component [true false] | true |
Revenue, Remaining Performance Obligation, Optional Exemption, Performance Obligation [true false] | true |
Revenue - Grant revenue (Detail
Revenue - Grant revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Mar. 24, 2022 | Sep. 29, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Total revenue | $ 105,522 | $ 110,556 | $ 86,377 | ||
Research and Development Expense | 25,890 | 27,978 | 20,174 | ||
Proceeds from RADx grant on assets purchased | 520 | 7,278 | 3,304 | ||
RADx WP2 | |||||
Total revenue | 0 | 4,400 | |||
Contract value | $ 18,200 | 18,200 | |||
Research and Development Expense | 0 | 3,400 | 2,600 | ||
ADDF | |||||
Contract value | $ 2,300 | 2,300 | |||
Proceeds from RADx grant on assets purchased | 1,300 | ||||
Grant revenue | |||||
Total revenue | 570 | 5,217 | 6,422 | ||
Grant revenue | RADx WP2 | |||||
Total revenue | 9,576 | 9,576 | 4,362 | ||
Contract value | 18,200 | $ 18,200 | $ 18,200 | ||
Grant revenue | ADDF | |||||
Total revenue | 600 | ||||
Research and Development Expense | $ 600 |
Revenue - Summarizes the activi
Revenue - Summarizes the activity under WP2 (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 29, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue recognition | ||||
Total revenue | $ 105,522 | $ 110,556 | $ 86,377 | |
Grant revenue | ||||
Revenue recognition | ||||
Total revenue | 570 | 5,217 | 6,422 | |
RADx WP2 | ||||
Revenue recognition | ||||
Total revenue | 0 | 4,400 | ||
Total RADx Grant amount | $ 18,200 | 18,200 | ||
RADx WP2 | Grant revenue | ||||
Revenue recognition | ||||
Total revenue | 9,576 | 9,576 | 4,362 | |
Total proceeds used for assets | 8,624 | 8,104 | 826 | |
Total deferred proceeds for assets | 2,478 | |||
Total deferred grant revenue | 304 | |||
Total recognized | 18,200 | 17,680 | 7,970 | |
Total amount accrued | (2,968) | |||
Total cash received | 18,200 | 17,680 | 5,002 | |
Total cash received | 18,200 | 17,680 | 5,002 | |
Total proceeds received | 18,200 | 17,680 | 5,002 | |
Total proceeds reasonably assured | 520 | 13,198 | ||
Total RADx Grant amount | $ 18,200 | $ 18,200 | $ 18,200 |
Allowance for credit Losses (De
Allowance for credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for credit Losses | |||
Beginning Balance | $ 419 | $ 370 | $ 162 |
Provision charges | 752 | 213 | 493 |
Deductions | (1,053) | (164) | (285) |
Ending Balance | $ 118 | $ 419 | $ 370 |
Collaboration and license arr_2
Collaboration and license arrangements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Collaboration and license arrangements | |||
Deferred revenue | $ 500 | $ 500 | |
Revenue | $ 105,522 | 110,556 | $ 86,377 |
Abbot license agreement | |||
Collaboration and license arrangements | |||
Number of days notice to terminate agreement | 60 days | ||
Initial license fee receivable | 10,000 | ||
Collaboration and license revenue | |||
Collaboration and license arrangements | |||
Revenue | $ 649 | 648 | $ 11,809 |
Collaboration and license revenue | Abbot license agreement | |||
Collaboration and license arrangements | |||
Revenue | $ 0 | $ 0 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory | ||
Raw Materials | $ 5,509 | $ 7,892 |
Work in process | 3,362 | 4,923 |
Finished goods | 7,915 | 9,375 |
Total net inventory | $ 16,786 | $ 22,190 |
Property and equipment (Details
Property and equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property and equipment | |||
Property and equipment, gross | $ 31,123 | $ 25,665 | |
Less: accumulated depreciation | (10,961) | (7,705) | |
Total | 20,162 | 17,960 | |
Depreciation expense | 3,500 | 2,800 | $ 2,200 |
Impairment expense | 17,372 | 0 | $ 0 |
Laboratory and manufacturing equipment | |||
Property and equipment | |||
Property and equipment, gross | 11,806 | 9,742 | |
Laboratory and manufacturing instruments used internally | |||
Property and equipment | |||
Property and equipment, gross | 7,500 | 3,900 | |
Less: accumulated depreciation | (3,200) | (1,500) | |
Office furniture and equipment. | |||
Property and equipment | |||
Property and equipment, gross | 1,798 | 1,617 | |
Computers and software | |||
Property and equipment | |||
Property and equipment, gross | 3,831 | 3,893 | |
Impairment expense | 1,100 | ||
Leasehold improvements | |||
Property and equipment | |||
Property and equipment, gross | 13,688 | $ 10,413 | |
Impairment expense | $ 4,300 |
Other accrued expenses (Details
Other accrued expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other accrued expenses | ||
Royalties | $ 815 | $ 1,250 |
Professional and outside services | 1,409 | 2,126 |
Tax liabilities | 172 | 430 |
Other | 2,351 | 2,680 |
Total accrued expenses | $ 4,747 | $ 6,486 |
Income taxes - Components of lo
Income taxes - Components of loss before income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Components of loss before income taxes | |||
United States | $ (89,590) | $ (56,554) | $ (29,896) |
Foreign | (7,045) | (1,170) | (2,010) |
Loss before income taxes | $ (96,635) | $ (57,724) | $ (31,906) |
Income taxes - Provision for in
Income taxes - Provision for income tax benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
State | $ (77) | $ (30) | $ (13) |
Foreign | (368) | (342) | (102) |
Total deferred income tax benefit | (445) | (372) | (115) |
Deferred | |||
Federal | 10 | 5 | (8) |
State | 13 | (6) | (3) |
Foreign | 357 | 409 | 502 |
Total deferred income tax benefit (provision) | 380 | 408 | 491 |
Income tax (expense) benefit | $ (65) | $ 36 | $ 376 |
Income taxes - Reconciliation o
Income taxes - Reconciliation of the federal statutory income tax rate to the effective tax rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income taxes | |||
Taxable goodwill or intangible assets | $ 66 | ||
Reconciliation of the federal statutory income tax rate to the effective tax rate | |||
Federal statutory income tax rate (in percent) | 21% | 21% | 21% |
Foreign tax rate differential (in percent) | 0.30% | ||
State taxes, net of federal benefit (in percent) | 2.70% | 6.50% | 2.50% |
Tax credits (in percent) | 1.40% | 2% | 1.60% |
Share-based compensation (in percent) | (2.50%) | 7.40% | 5.20% |
Permanent items (in percent) | (0.30%) | (1.80%) | (0.40%) |
Deferred tax rate change (in percent) | 0.20% | 0.30% | |
Change in valuation allowance (in percent) | (20.80%) | (34.80%) | (29.70%) |
Impairment of goodwill | (1.70%) | ||
Other (in percent) | 0% | (0.40%) | 0.40% |
Effective income tax rate (in percent) | (0.20%) | 0.10% | 1.20% |
Impact of Acquisition (in percent) | 21% |
Income taxes - Deferred tax ass
Income taxes - Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | |||
Net operating loss carryforwards | $ 78,191 | $ 67,543 | |
Tax credits | 7,407 | 6,113 | |
Deferred revenue | 2,385 | 1,862 | |
Amortization | 847 | 962 | |
Stock-based compensation | 2,773 | 3,138 | |
Inventory | 1,507 | 686 | |
Capitalized R&D Costs | 5,680 | ||
Lease liability | 10,856 | 5,464 | |
Other deferred tax assets | 1,370 | 2,340 | |
Total deferred tax assets | 111,016 | 88,108 | |
Less: valuation allowances | (103,243) | (83,121) | $ (63,609) |
Net deferred tax assets | 7,773 | 4,987 | |
Right-of-Use Assets | (5,219) | (2,867) | |
Depreciation | (2,244) | (1,752) | |
Amortization acquired intangibles | (1,570) | (2,208) | |
Goodwill | (66) | ||
Other deferred tax liabilities | (209) | (129) | |
Net deferred tax liabilities | $ (1,469) | $ (2,035) |
Income taxes - Valuation allowa
Income taxes - Valuation allowance deferred tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income taxes | ||
Balance, beginning of year | $ 83,121 | $ 63,609 |
Change in valuation allowance | 20,122 | 19,512 |
Balance, end of year | $ 103,243 | $ 83,121 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes | |||||
Cumulative change in ownership related to percentage points | 5% | ||||
Percentage related to ownership change | 50% | ||||
Rolling period duration of ownership change | 3 years | ||||
Capitalized R&D Costs | $ 5,680 | ||||
Accrued interest or penalties | 0 | $ 0 | $ 0 | ||
Federal | |||||
Income Taxes | |||||
Net operating loss (NOL) carryforwards | 309,700 | ||||
Operating loss carryforwards, not subject to expiry | $ 201,200 | ||||
Federal | Through Tax Year 2037 | |||||
Income Taxes | |||||
Operating loss carryforwards, subject to expiry | $ 108,500 | ||||
Federal | Through Tax Year 2042 | |||||
Income Taxes | |||||
Tax credit carryforwards | 5,800 | ||||
State | |||||
Income Taxes | |||||
Operating loss carryforwards, not subject to expiry | 10,000 | ||||
State | Through Tax Year 2037 | |||||
Income Taxes | |||||
Operating loss carryforwards, subject to expiry | 2,000 | ||||
State | Through Tax Year 2042 | |||||
Income Taxes | |||||
Net operating loss (NOL) carryforwards | 207,400 | ||||
Operating loss carryforwards, subject to expiry | $ 197,400 |
Stock-Based Compensation - Shar
Stock-Based Compensation - Share-based compensation expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock-based compensation | |||
Share-based compensation expense | $ 15,442 | $ 15,975 | $ 10,099 |
Cost of product revenue | |||
Stock-based compensation | |||
Share-based compensation expense | 608 | 471 | 189 |
Cost of service and other revenue | |||
Stock-based compensation | |||
Share-based compensation expense | 819 | 403 | 311 |
Research and development | |||
Stock-based compensation | |||
Share-based compensation expense | 1,639 | 1,807 | 1,129 |
Selling, general, and administrative | |||
Stock-based compensation | |||
Share-based compensation expense | 12,376 | $ 13,294 | $ 8,470 |
Restricted stock units and stock options | |||
Stock-based compensation | |||
Total unrecognized compensation cost related to unvested stock awards | $ 33,900 | ||
Period of recognition of unrecognized compensation cost | 2 years 10 months 24 days |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based compensation plans (Details) - shares | 12 Months Ended | ||||
Jan. 03, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2017 | |
2007 Plan | |||||
Stock-based compensation | |||||
Shares available for grant under the plan (in shares) | 0 | ||||
2017 Plan | |||||
Stock-based compensation | |||||
Shares authorized under the plan (in shares) | 1,042,314 | ||||
Shares outstanding (in shares) | 3,168,278 | ||||
Shares available for grant under the plan (in shares) | 1,847,643 | ||||
Additional shares authorized | 1,488,696 | ||||
Annual increase in the shares available for grant under the plan (as a percent of shares of common stock outstanding) | 4% | ||||
2017 ESPP | |||||
Stock-based compensation | |||||
Shares authorized under the plan (in shares) | 612,572 | ||||
Shares available for grant under the plan (in shares) | 1,447,467 | ||||
Annual increase in the shares available for grant under the plan (as a percent of shares of common stock outstanding) | 1% | ||||
Increase in the shares available for grant under the plan (in shares) | 372,174 | ||||
Outstanding stock options | |||||
Stock-based compensation | |||||
Options outstanding (in shares) | 2,187,648 | 2,204,813 | |||
Outstanding stock options | 2007 Plan | |||||
Stock-based compensation | |||||
Options outstanding (in shares) | 207,464 | ||||
Outstanding stock options | 2017 Plan | |||||
Stock-based compensation | |||||
Shares authorized under the plan (in shares) | 2,490,290 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Aggregate intrinsic value | |||
Weighted-average fair value of options granted | $ 9.88 | $ 29.96 | $ 12.66 |
Share-based compensation expense | $ 15,442 | $ 15,975 | $ 10,099 |
Outstanding stock options | |||
Stock-based compensation | |||
Options expiration period (in years) | 10 years | ||
Number outstanding | |||
Outstanding at the beginning of the period (in shares) | 2,204,813 | ||
Granted (in shares) | 1,507,452 | ||
Exercised (in shares) | (243,792) | ||
Cancelled or forfeited (in shares) | (1,280,825) | ||
Outstanding at the end of the period (in shares) | 2,187,648 | 2,204,813 | |
Exercisable at the end of the period (in shares) | 820,868 | ||
Vested and expected to vest at the end of the period (in shares) | 2,187,648 | ||
Weighted-average exercise price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 25.36 | ||
Granted (in dollars per share) | 18.07 | ||
Exercised (in dollars per share) | 5.10 | ||
Cancelled or forfeited (in dollars per share) | 28.63 | ||
Outstanding at the end of the period (in dollars per share) | 20.69 | $ 25.36 | |
Exercisable at the end of the period (in dollars per share) | 22.92 | ||
Vested and expected to vest at the end of the period (in dollars per share) | $ 20.69 | ||
Remaining contractual life | |||
Outstanding (in years) | 8 years 1 month 6 days | 6 years 9 months 18 days | |
Exercisable at the end of the period (in years) | 5 years 9 months 18 days | ||
Vested and expected to vest at the end of the period (in years) | 8 years 1 month 6 days | ||
Aggregate intrinsic value | |||
Outstanding | $ 4,273 | $ 44,813 | |
Exercisable at the end of the period | 1,566 | ||
Vested and expected to vest at the end of the period | $ 4,273 | ||
Outstanding stock options | Subject to a four year vesting schedule with 25% vesting on the first anniversary and the remaining vesting ratably on a monthly basis over the remaining three years | |||
Stock-based compensation | |||
Vesting period (in years) | 4 years | ||
Vesting percentage 1 (as a percent) | 25% | ||
Outstanding stock options | Remaining 75% vesting ratably on a monthly basis over the remaining three years | |||
Stock-based compensation | |||
Vesting period (in years) | 3 years | ||
Vesting percentage 1 (as a percent) | 75% |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted stock units (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted-average grant date fair value per share | |||
Share-based compensation expense | $ 15,442 | $ 15,975 | $ 10,099 |
Restricted stock units | |||
Number of restricted stock units | |||
Unvested restricted common stock at the beginning of the period (in shares) | 529,871 | ||
Granted (in shares) | 1,273,807 | ||
Vested (in shares) | (200,078) | ||
Cancelled (in shares) | (415,506) | ||
Unvested restricted common stock at the end of the period (in shares) | 1,188,094 | 529,871 | |
Expected to convert | 1,188,094 | ||
Weighted-average grant date fair value per share | |||
Unvested restricted common stock at the beginning of the period (in dollars per share) | $ 49.32 | ||
Granted (in dollars per share) | 18.32 | ||
Vested (in dollars per share) | 48.93 | ||
Cancelled (in dollars per share) | 34.94 | ||
Unvested restricted common stock at the end of the period (in dollars per share) | 21.18 | $ 49.32 | |
Expected to convert (in dollars per share) | $ 21.18 | ||
Unvested, Weighted-average remaining contractual life (in years) | 9 years 7 months 6 days | 9 years 8 months 12 days | |
Unvested, Aggregate intrinsic value | $ 16,455 | $ 22,467 | |
Expected to convert, Aggregate intrinsic value | $ 16,455 |
Earnings (Loss) Per Share - Bas
Earnings (Loss) Per Share - Basic and diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings (Loss) Per Share | |||
Net loss | $ (96,700) | $ (57,688) | $ (31,530) |
Basic weighted average common shares outstanding | 36,990,965 | 35,997,473 | 29,589,132 |
Diluted weighted average common shares outstanding | 36,990,965 | 35,997,473 | 29,589,132 |
Basic net (loss) income per share | $ (2.61) | $ (1.60) | $ (1.07) |
Diluted net (loss) income per share | $ (2.61) | $ (1.60) | $ (1.07) |
Earnings (Loss) Per Share - Com
Earnings (Loss) Per Share - Common share equivalents have been excluded from the calculation of diluted net loss per share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Unvested restricted common stock and restricted stock units | |||
Net loss per share | |||
Number of common share equivalents excluded in the calculation of diluted net loss per share | 701,707 | 531,473 | 518,387 |
Outstanding stock options | |||
Net loss per share | |||
Number of common share equivalents excluded in the calculation of diluted net loss per share | 446,180 | 2,304,543 | 2,494,045 |
Outstanding common stock warrants | |||
Net loss per share | |||
Number of common share equivalents excluded in the calculation of diluted net loss per share | 10,000 |
Leases (Details)
Leases (Details) | 12 Months Ended | |||||
Feb. 01, 2022 item | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jan. 28, 2022 USD ($) | Jan. 01, 2020 USD ($) | |
Leases | ||||||
Right-of-use assets | $ 21,223,000 | $ 11,491,000 | ||||
Long term lease liabilities | 41,417,000 | 20,464,000 | ||||
Short term and variable lease cost | 3,400,000 | |||||
Fixed lease costs | 5,500,000 | 5,400,000 | $ 4,800,000 | |||
Operating lease costs | 8,900,000 | 5,400,000 | 4,800,000 | |||
Impairment expense | 17,372,000 | $ 0 | $ 0 | |||
Office and Laboratory Space in Bedford, Massachusetts | ||||||
Leases | ||||||
Square footage of office and laboratory space | 85,800 | |||||
Term of operating lease | 8 years 9 months | |||||
Lease agreement number of options to extend | item | 2 | |||||
Lease agreement lease extension term | 5 years | |||||
Impairment related to restructuring | 12,000,000 | |||||
Right-of-use assets | $ 18,200,000 | |||||
Long term lease liabilities | $ 23,700,000 | |||||
Lease obligation incentive | $ 5,500,000 |
Leases - Lease costs recognized
Leases - Lease costs recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases | ||
Weighted average remaining lease term (years) | 7 years 9 months 18 days | 8 years 7 months 6 days |
Weighted average discount rate | 7.83% | 9.73% |
Operating cash flows used for operating leases | $ 6,539 | $ 3,388 |
Leases - Future minimum commitm
Leases - Future minimum commitments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Leases | |
2023 | $ 6,707 |
2024 | 7,064 |
2025 | 7,228 |
2026 | 7,408 |
2027 | 7,641 |
thereafter | 23,621 |
Total lease payments | 59,669 |
Less: imputed interest and lease incentive reimbursements | 15,565 |
Total operating lease liabilities | $ 44,104 |
Commitments and contingencies -
Commitments and contingencies - Purchase Commitments (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2024 USD ($) item | Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Cost of revenue | $ 58,716 | $ 48,828 | $ 38,195 | ||
Stratec Supply Agreement | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Number of discs purchased | item | 375,000 | ||||
Number of discs shipped | item | 75,000 | ||||
Cost of revenue | $ 500 | ||||
Revenue from open purchase orders | 900 | ||||
Purchase commitments expects to incur in next year | $ 3,100 | ||||
Stratec Supply Agreement | Forecast | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Number of discs shipped | item | 80,000 | 220,000 | |||
Cost of revenue | $ 600 | $ 1,600 |
Commitments and contingencies_2
Commitments and contingencies - License agreements and Lease commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
License agreements | |||
Cost of revenue | $ 58,716 | $ 48,828 | $ 38,195 |
Tufts | License agreements | |||
License agreements | |||
Royalty expense | $ 1,400 | $ 1,600 | 1,100 |
Collaboration and license revenue | |||
License agreements | |||
Cost of revenue | 1,000 | ||
Collaboration and license revenue | Tufts | |||
License agreements | |||
Cost of revenue | $ 1,000 |
Restructuring and Other Charg_3
Restructuring and Other Charges (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) position | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Restructuring | |||
Total headcount | 119 | ||
Impairment of long-lived assets | $ | $ 17,372 | $ 0 | $ 0 |
Property And Equipment [Member] | |||
Restructuring | |||
Impairment of long-lived assets | $ | 16,300 | ||
Software and Software Development Costs [Member] | |||
Restructuring | |||
Impairment of long-lived assets | $ | $ 1,100 | ||
North America | |||
Restructuring | |||
Total headcount | 105 | ||
EMEA | |||
Restructuring | |||
Total headcount | 10 | ||
Asia Pacific | |||
Restructuring | |||
Total headcount | 4 | ||
Cost of goods sold | |||
Restructuring | |||
Total headcount | 21 | ||
Cost of goods sold | North America | |||
Restructuring | |||
Total headcount | 21 | ||
Research and development | |||
Restructuring | |||
Total headcount | 35 | ||
Research and development | North America | |||
Restructuring | |||
Total headcount | 34 | ||
Research and development | EMEA | |||
Restructuring | |||
Total headcount | 1 | ||
Selling, general and administrative | |||
Restructuring | |||
Total headcount | 63 | ||
Selling, general and administrative | North America | |||
Restructuring | |||
Total headcount | 50 | ||
Selling, general and administrative | EMEA | |||
Restructuring | |||
Total headcount | 9 | ||
Selling, general and administrative | Asia Pacific | |||
Restructuring | |||
Total headcount | 4 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Roll forward (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Restructuring | |
Charges | $ 3,755 |
Cash payments | (3,409) |
Foreign exchange | (18) |
Balance at End of period | 328 |
Severance and Employee Benefit Costs | |
Restructuring | |
Charges | 3,634 |
Cash payments | (3,288) |
Foreign exchange | (18) |
Balance at End of period | 328 |
Other Restructuring Charges | |
Restructuring | |
Charges | 121 |
Cash payments | $ (121) |
Notes payable (Details)
Notes payable (Details) - Loan agreement $ in Millions | Oct. 01, 2021 USD ($) | Jul. 01, 2021 installment | Apr. 14, 2014 | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Long Term Debt | |||||
Additional amounts available to borrow | $ 0 | ||||
Interest rate (as a percent) | 8% | ||||
Final principal payment, including end of term fees | $ 2 | ||||
Outstanding loan balances | $ 0 | ||||
Loan principal payment installment | installment | 4 | ||||
Prime rate | |||||
Long Term Debt | |||||
Margin on variable interest rate (as a percent) | 5.25% |
Employee benefit plans (Details
Employee benefit plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee benefit plans | |||
Contribution made to the 401 (k) Plan | $ 1.2 | $ 1.1 | $ 0.7 |
Goodwill and intangible asset_2
Goodwill and intangible assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Rollforward of goodwill balance | |||
Balance as of beginning of period | $ 9,632 | ||
Impairment losses | (8,220) | ||
Foreign exchange adjustments | (1,412) | ||
Balance as of end of period | $ 9,632 | ||
Purchased intangible assets | |||
Gross Carrying Value | 16,400 | 16,400 | |
Accumulated Amortization | (7,402) | (6,114) | |
Cumulative Translation Adjustment | (1,482) | 248 | |
Net Carrying Value | 7,516 | 10,534 | |
Amortization expense | 1,800 | $ 2,000 | $ 2,100 |
Estimated amortization expense | |||
2023 | 1,665 | ||
2024 | 1,584 | ||
2025 | 1,447 | ||
2026 | 1,420 | ||
2027 | 1,398 | ||
Thereafter | 2 | ||
Total amortization expense | $ 7,516 | ||
Know How | |||
Purchased intangible assets | |||
Estimated Useful Life (in years) | 8 years 6 months | 8 years 6 months | |
Gross Carrying Value | $ 13,000 | $ 13,000 | |
Accumulated Amortization | (4,763) | (3,825) | |
Cumulative Translation Adjustment | (1,433) | 241 | |
Net Carrying Value | $ 6,804 | $ 9,416 | |
Weighted Average Life Remaining (in years) | 5 years | 6 years | |
Developed technology | |||
Purchased intangible assets | |||
Estimated Useful Life (in years) | 7 years | 7 years | |
Gross Carrying Value | $ 1,650 | $ 1,650 | |
Accumulated Amortization | (1,458) | (1,277) | |
Net Carrying Value | $ 192 | $ 373 | |
Weighted Average Life Remaining (in years) | 2 years 1 month 6 days | 3 years 1 month 6 days | |
Customer relationships | |||
Purchased intangible assets | |||
Gross Carrying Value | $ 1,360 | $ 1,360 | |
Accumulated Amortization | (938) | (792) | |
Cumulative Translation Adjustment | (12) | 2 | |
Net Carrying Value | $ 410 | $ 570 | |
Weighted Average Life Remaining (in years) | 5 years 1 month 6 days | 6 years 1 month 6 days | |
Non-compete agreements | |||
Purchased intangible assets | |||
Estimated Useful Life (in years) | 5 years 6 months | 5 years 6 months | |
Gross Carrying Value | $ 340 | $ 340 | |
Accumulated Amortization | (193) | (170) | |
Cumulative Translation Adjustment | (37) | 5 | |
Net Carrying Value | $ 110 | $ 175 | |
Weighted Average Life Remaining (in years) | 2 years | 3 years | |
Trade names | |||
Purchased intangible assets | |||
Estimated Useful Life (in years) | 3 years | 3 years | |
Gross Carrying Value | $ 50 | $ 50 | |
Accumulated Amortization | $ (50) | $ (50) | |
Minimum | Customer relationships | |||
Purchased intangible assets | |||
Estimated Useful Life (in years) | 8 years 6 months | 8 years 6 months | |
Maximum | Customer relationships | |||
Purchased intangible assets | |||
Estimated Useful Life (in years) | 10 years | 10 years |
Related party transactions (Det
Related party transactions (Details) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2022 USD ($) item | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Related party transactions | ||||
Cost of revenue | $ 58,716 | $ 48,828 | $ 38,195 | |
Research and development | 25,890 | 27,978 | 20,174 | |
Accounts receivable, related parties | 89 | 200 | ||
Accounts payable, related parties | 0 | 42 | ||
Related party activity research and development expenses | 696 | 565 | 235 | |
Related party activity in selling, general and administrative expenses | 41 | 89 | 37 | |
Commitment to sponsor agreement | ||||
Collaboration and license revenue | ||||
Related party transactions | ||||
Cost of revenue | 1,000 | |||
Cost of revenue, related party activity | 0 | 0 | 1,000 | |
Product revenue | ||||
Related party transactions | ||||
Cost of revenue | 40,809 | 34,149 | 25,950 | |
Related party revenue | 2,634 | 505 | 580 | |
Cost of revenue, related party activity | 154 | 1,936 | 205 | |
Service and other revenue | ||||
Related party transactions | ||||
Cost of revenue | 17,907 | 14,679 | 11,245 | |
Related party revenue | 11 | 114 | 202 | |
Cost of revenue, related party activity | 87 | 74 | 52 | |
Tufts | Collaboration and license revenue | ||||
Related party transactions | ||||
Cost of revenue | 1,000 | |||
Tufts | License Agreement | ||||
Related party transactions | ||||
Royalty expense | 1,400 | 1,600 | 1,100 | |
Harvard University | ||||
Related party transactions | ||||
Related party revenue | 700 | 200 | $ 100 | |
Research and development | 600 | |||
Accounts receivable, related parties | 100 | 200 | ||
Deferred revenue from related parties | 100 | $ 100 | ||
Cost of revenue, related party activity | $ 100 | |||
UltraDx | ||||
Related party transactions | ||||
Purchase price | $ 1,900 | |||
Number Of Manufacturing Instruments | item | 10 |