Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 14, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Personalis, Inc. | ||
Entity Central Index Key | 0001527753 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 156,000,000 | ||
Entity Common Stock, Shares Outstanding | 46,736,830 | ||
Entity Current Reporting Status | Yes | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity File Number | 001-38943 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 27-5411038 | ||
Entity Address, Address Line One | 6600 Dumbarton Circle | ||
Entity Address, City or Town | Fremont | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94555 | ||
City Area Code | 650 | ||
Local Phone Number | 752-1300 | ||
Entity Interactive Data Current | Yes | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Auditor Firm ID | 34 | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Location | Austin, Texas, U.S. | ||
Title of 12(b) Security | Common Stock, par value $0.0001 | ||
Trading Symbol | PSNL | ||
Security Exchange Name | NASDAQ | ||
Documents Incorporated by Reference | Portions of the Registrant's definitive proxy statement relating to its 2023 annual meeting of shareholders are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The Registrant's definitive proxy statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 89,128 | $ 105,585 |
Short-term investments | 78,530 | 181,479 |
Accounts receivable, net | 16,642 | 18,468 |
Inventory and other deferred costs | 8,591 | 5,610 |
Prepaid expenses and other current assets | 6,808 | 7,089 |
Total current assets | 199,699 | 318,231 |
Property and equipment, net | 61,935 | 19,650 |
Operating lease right-of-use assets | 26,480 | 53,822 |
Other long-term assets | 4,586 | 4,825 |
Total assets | 292,700 | 396,528 |
Current liabilities | ||
Accounts payable | 12,854 | 9,221 |
Accrued and other current liabilities | 19,013 | 18,110 |
Contract liabilities | 1,264 | 3,982 |
Total current liabilities | 33,131 | 31,313 |
Long-term operating lease liabilities | 41,041 | 52,797 |
Other long-term liabilities | 389 | 2,117 |
Total liabilities | 74,561 | 86,227 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity | ||
Common stock, $0.0001 par value - 200,000,000 shares authorized; 46,707,084 and 44,904,512 shares issued and outstanding at December 31, 2022 and 2021, respectively | 5 | 4 |
Additional paid-in capital | 579,456 | 557,558 |
Accumulated other comprehensive loss | (912) | (166) |
Accumulated deficit | (360,410) | (247,095) |
Total stockholders’ equity | 218,139 | 310,301 |
Total liabilities and stockholders’ equity | $ 292,700 | $ 396,528 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares, issued | 46,707,084 | 44,904,512 |
Common stock, shares, outstanding | 46,707,084 | 44,904,512 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Revenue | $ 65,047 | $ 85,494 | $ 78,648 |
Costs and expenses | |||
Cost of revenue | 51,697 | 53,837 | 58,534 |
Research and development | 64,912 | 49,312 | 28,568 |
Selling, general and administrative | 63,969 | 47,698 | 33,692 |
Total costs and expenses | 180,578 | 150,847 | 120,794 |
Loss from operations | (115,531) | (65,353) | (42,146) |
Interest income | 2,396 | 367 | 949 |
Interest expense | (201) | (184) | (2) |
Other income (expense), net | 61 | (42) | (24) |
Loss before income taxes | (113,275) | (65,212) | (41,223) |
Provision for income taxes | 40 | 14 | 57 |
Net loss | $ (113,315) | $ (65,226) | $ (41,280) |
Net loss per share, basic | $ (2.48) | $ (1.49) | $ (1.20) |
Net loss per share, diluted | $ (2.48) | $ (1.49) | $ (1.20) |
Weighted-average shares outstanding, basic | 45,704,805 | 43,886,730 | 34,374,903 |
Weighted-average shares outstanding, diluted | 45,704,805 | 43,886,730 | 34,374,903 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net loss | $ (113,315) | $ (65,226) | $ (41,280) |
Other comprehensive income (loss), net of tax | |||
Foreign currency translation adjustment | (277) | 49 | 12 |
Change in unrealized gain (loss) on available-for-sale debt securities | (469) | (237) | 16 |
Comprehensive loss | $ (114,061) | $ (65,414) | $ (41,252) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance at Dec. 31, 2019 | $ 106,690 | $ 3 | $ 247,282 | $ (6) | $ (140,589) |
Beginning balance, shares at Dec. 31, 2019 | 31,243,029 | ||||
Proceeds from follow-on offering, net of offering costs | 117,065 | $ 1 | 117,064 | ||
Proceeds from follow-on offering, net of offering costs, shares | 6,578,947 | ||||
Exercise of common stock warrants, shares | 79,772 | ||||
Proceeds from exercise of stock options | 2,789 | 2,789 | |||
Proceeds from exercise of stock options, shares | 908,691 | ||||
Proceeds from ESPP purchases | 1,415 | 1,415 | |||
Proceeds from ESPP purchases, shares | 164,164 | ||||
Restricted stock units vested, shares | 130,945 | ||||
Stock-based compensation | 8,238 | 8,238 | |||
Foreign currency translation adjustment | 12 | 12 | |||
Unrealized gain (loss) on available-for-sale debt securities | 16 | 16 | |||
Net loss | (41,280) | (41,280) | |||
Ending balance at Dec. 31, 2020 | 194,945 | $ 4 | 376,788 | 22 | (181,869) |
Ending balance, shares at Dec. 31, 2020 | 39,105,548 | ||||
Proceeds from follow-on offering, net of offering costs | 161,916 | 161,916 | |||
Proceeds from follow-on offering, net of offering costs, shares | 4,542,500 | ||||
Proceeds from exercise of stock options | 2,096 | 2,096 | |||
Proceeds from exercise of stock options, shares | 862,056 | ||||
Proceeds from ESPP purchases | 2,380 | 2,380 | |||
Proceeds from ESPP purchases, shares | 128,289 | ||||
Restricted stock units vested, shares | 266,119 | ||||
Stock-based compensation | 14,378 | 14,378 | |||
Foreign currency translation adjustment | 49 | 49 | |||
Unrealized gain (loss) on available-for-sale debt securities | (237) | (237) | |||
Net loss | (65,226) | (65,226) | |||
Ending balance at Dec. 31, 2021 | 310,301 | $ 4 | 557,558 | (166) | (247,095) |
Ending balance, shares at Dec. 31, 2021 | 44,904,512 | ||||
Proceeds from exercise of stock options | 1,011 | $ 1 | 1,010 | ||
Proceeds from exercise of stock options, shares | 488,187 | ||||
Proceeds from ESPP purchases | 1,455 | 1,455 | |||
Proceeds from ESPP purchases, shares | 416,514 | ||||
Restricted stock units vested, shares | 897,871 | ||||
Stock-based compensation | 19,433 | 19,433 | |||
Foreign currency translation adjustment | (277) | (277) | |||
Unrealized gain (loss) on available-for-sale debt securities | (469) | (469) | |||
Net loss | (113,315) | (113,315) | |||
Ending balance at Dec. 31, 2022 | $ 218,139 | $ 5 | $ 579,456 | $ (912) | $ (360,410) |
Ending balance, shares at Dec. 31, 2022 | 46,707,084 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net loss | $ (113,315) | $ (65,226) | $ (41,280) |
Adjustments to reconcile net loss to net cash used in operating activities | |||
Stock-based compensation expense | 19,433 | 14,378 | 8,238 |
Depreciation and amortization | 8,432 | 6,014 | 5,758 |
Noncash operating lease cost | 4,446 | 2,950 | 1,409 |
Amortization of premium on short-term investments | 57 | 2,031 | 391 |
Other | 103 | 169 | 60 |
Changes in operating assets and liabilities | |||
Accounts receivable | 1,825 | (12,118) | (3,049) |
Inventory and other deferred costs | (2,982) | 29 | (1,076) |
Prepaid expenses and other assets | 484 | (2,658) | (2,312) |
Accounts payable | 3,089 | (1,457) | 751 |
Accrued and other current liabilities | (1,479) | 3,365 | 3,529 |
Contract liabilities | (2,718) | (17,052) | (14,942) |
Operating lease liabilities | 12,811 | (962) | (850) |
Other long-term liabilities | (419) | (291) | 720 |
Net cash used in operating activities | (70,233) | (70,828) | (42,653) |
Cash flows from investing activities: | |||
Purchases of available-for-sale debt securities | (121,490) | (267,128) | (161,775) |
Proceeds from maturities of available-for-sale debt securities | 223,923 | 213,083 | 99,878 |
Proceeds from sales of available-for-sale debt securities | 5,059 | ||
Purchases of property and equipment | (49,896) | (11,083) | (3,246) |
Net cash provided by (used in) investing activities | 52,537 | (60,069) | (65,143) |
Cash flows from financing activities: | |||
Proceeds from public offerings, net of underwriting discounts and commissions | 162,258 | 117,500 | |
Payments of costs related to public offerings | (342) | (435) | |
Proceeds from loans | 1,194 | 5,167 | |
Repayments of loans | (2,293) | (1,857) | |
Proceeds from exercise of equity awards | 2,465 | 4,474 | 4,203 |
Net cash provided by financing activities | 1,366 | 169,700 | 121,268 |
Effect of exchange rates on cash, cash equivalents and restricted cash | (127) | 47 | 7 |
Net change in cash, cash equivalents and restricted cash | (16,457) | 38,850 | 13,479 |
Cash, cash equivalents and restricted cash, beginning of period | 107,375 | 68,525 | 55,046 |
Cash, cash equivalents and restricted cash, end of period | 90,918 | 107,375 | 68,525 |
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets: | |||
Cash and cash equivalents | 89,128 | 105,585 | 68,525 |
Restricted cash, included in other long-term assets | 1,790 | 1,790 | |
Total cash, cash equivalents and restricted cash | 90,918 | 107,375 | 68,525 |
Supplemental cash flow information: | |||
Cash paid for income taxes, net of refunds | 47 | 39 | 35 |
Acquisition of property and equipment included in accounts payable and accrued liabilities | $ 3,917 | $ 3,006 | $ 282 |
Company and Nature of Business
Company and Nature of Business | 12 Months Ended |
Dec. 31, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Company and Nature of Business | Note 1. Company and Nature of Business Personalis, Inc. (the "Company") is a provider of advanced genomic tests for cancer. The Company also provides sequencing and data analysis services to support population sequencing initiatives. The Company’s genomic tests are sold primarily to pharmaceutical companies, biopharmaceutical companies, diagnostics companies, universities, non-profits, and government entities, while services for population sequencing initiatives are sold primarily to government entities. The principal markets for the Company’s services are in the United States and Europe. The Company was incorporated in Delaware in February 2011 and began operations in September 2011. The Company formed a wholly owned subsidiary, Personalis (UK) Ltd., in August 2013 and a wholly owned subsidiary, Shanghai Personalis Biotechnology Co., Ltd., which is referred to as “Personalis (Shanghai) Ltd” herein, in October 2020. The Company operates and manages its business as one reportable operating segment, which is the sale of sequencing and data analysis services. The Company has incurred losses to date and expects to incur additional losses for the foreseeable future. The Company continues to invest the majority of its resources in the development and growth of its business, including investments in product development and sales and marketing efforts. The Company’s activities have been financed to date primarily through the sale of its equity securities and cash from operations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Ac counting Policies Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding annual reporting. The consolidated financial statements include the accounts of Personalis, Inc. and its wholly owned subsidiaries, Personalis (UK) Ltd. and Personalis (Shanghai) Ltd. All intercompany balances and transactions 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 reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The estimates include, but are not limited to, useful lives assigned to long-lived assets, discount rates for lease accounting, the valuation of stock options, the valuation of stock-based awards, and provisions for income taxes and contingencies. Actual results could differ from these estimates, and such differences could be material to the Company’s consolidated financial position and results of operations. Follow-On and At-the-Market Equity Offerings In August 2020, the Company completed a follow-on equity offering in which it issued and sold 6,578,947 shares of its common stock at a public offering price of $ 19.00 per share. The Company received net proceeds of $ 117.5 million after deducting underwriting discounts and commissions. The Company also incurred $ 0.4 million of offering costs, including legal, accounting, printing and other offering-related costs. In January 2021, the Company completed a follow-on equity offering in which it issued and sold 3,950,000 shares of its common stock at a public offering price of $ 38.00 per share. The Company received net proceeds of $ 141.1 million after deducting underwriting discounts and commissions. The underwriters of the offering exercised their option to purchase an additional 592,500 shares shortly thereafter, resulting in additional net proceeds of $ 21.2 million after deducting underwriting discounts and commissions. The Company also incurred $ 0.3 million of offering costs, including legal, accounting, printing and other offering-related costs. In December 2021, the Company entered into an At-the-Market Sales Agreement (the “Sales Agreement”) with BTIG, LLC (“BTIG”) under which it may offer and sell its common stock having aggregate sales proceeds of up to $ 100.0 million from time to time through BTIG as its sales agent. BTIG will use commercially reasonable efforts to sell the Company’s common stock from time to time, based upon instructions from the Company (including any price, time or size limits or other customary parameters or conditions the Company may impose). The Company will pay BTIG a commission of up to 3 % of the gross sales proceeds of any common stock sold through BTIC under the Sales Agreement. The Company is not obligated to make any sales of common stock under the Sales Agreement. No shares of the Company’s common stock have been offered or sold under the Sales Agreement. Concentration of Credit Risk and Other Risks and Uncertainties The Company is subject to credit risk from its portfolio of cash and cash equivalents. The Company’s cash and cash equivalents are deposited with high-quality financial institutions. Deposits at these institutions may, at times, exceed federally insured limits. Management believes these financial institutions are financially sound and, accordingly, that minimal credit risk exists. The Company also invests in investment ‑ grade debt instruments and has policy limits for the amount it can invest in any one type of security, except for securities issued or guaranteed by the U.S. government. The goals of the Company’s investment policy are as follows: preservation of principal; liquidity of investments sufficient to meet cash flow requirements; avoidance of inappropriate concentration and credit risk; competitive after ‑ tax rate of returns; and fiduciary control of cash and investments. Under its investment policy, the Company limits the amounts invested in such securities by credit rating, maturity, investment type, and issuer. As a result, management believes that these financial instruments do not expose the Company to any significant concentrations of credit risk. The Company purchases various reagents and sequencing materials from sole source suppliers. Any extended interruption in the supply of these materials could result in the Company’s inability to secure sufficient materials to conduct business and meet customer demand. The Company routinely assesses the creditworthiness of its customers and does not require collateral. The Company has not experienced any material losses related to receivables from individual customers, or groups of customers. The Company maintains an allowance for doubtful accounts, which was $ 0.1 million as of December 31, 2022 and 2021. The Company had no bad debt expense in any of the periods presented. Significant customers are those that represent more than 10% of the Company’s total revenue or accounts receivable balance at each respective balance sheet date. For each significant customer, revenue as a percentage of total revenue and accounts receivable as a percentage of total accounts receivable are as follows: Revenue Accounts Receivable Year Ended December 31, December 31, 2022 2021 2020 2022 2021 Natera, Inc. 41 % 10 % * 43 % 39 % VA MVP 13 % 53 % 71 % * * Merck & Co., Inc. 11 % * * * 15 % AbbVie Inc. * * * * 18 % GSK plc * * * 12 % * Pfizer Inc. * * * 10 % * * Less than 10 % of revenue or accounts receivable Revenue Recognition The Company applies the revenue recognition guidance in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“Topic 606”). Revenue Recognition The revenue guidance provides a five-step framework through which revenue is recognized when control of promised goods or services is transferred to a customer at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To determine revenue recognition for arrangements that the Company concludes are within the scope of Topic 606, management performs the following five steps: (i) identifies the contract(s) with a customer; (ii) identifies the performance obligations in the contract(s); (iii) determines the transaction price, including whether there are any constraints on variable consideration; (iv) allocates the transaction price to the performance obligations; and (v) recognizes revenue when (or as) the Company satisfies a performance obligation. At contract inception, once a contract is determined to be within the scope of the new revenue standard, the Company assesses whether individual goods or services promised within each contract are distinct and, therefore, represent separate performance obligations. The Company derives revenue from the sale of sequencing and data analysis services. The Company’s contracts are in the form of a combination of signed agreements, statements of work, and/or purchase orders. The Company accounts for a contract with a customer when there is approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and it is probable that the Company will collect substantially all of the consideration to which it will be entitled. The sequencing and data analysis services are the only distinct services that meet the definition of a performance obligation and are accounted for as one performance obligation under Topic 606. The Company recognizes revenue from such services at the point in time when control of the test results is transferred to the customer. The Company has elected to exclude all sales and value added taxes from the measurement of the transaction price. Sequencing and data analysis services are based on a fixed price per test. Payment terms and conditions vary by contract and customer. The Company’s standard payment terms are typically 90 days or less from the invoice date. In instances where the timing of the Company’s revenue recognition differs from the timing of its invoicing, the Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised services to the customer will be one year or less. After assessing each of its revenue-generating arrangements to determine whether a significant financing component exists, the Company concluded that a significant financing component does not exist in any of its arrangements. The primary purpose of the Company’s invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company’s services and to provide payment protection for the Company. Practical Expedients and Exemptions As a practical expedient, the Company recognizes the incremental costs of obtaining contracts, such as sales commissions, as an expense when incurred since the amortization period of the asset the Company otherwise would have recognized is one year or less. Sales commissions are recorded within selling, general, and administrative expenses in the consolidated statements of operations. Cost of Revenue Cost of revenue consists of raw materials costs, personnel costs (salaries, bonuses, benefits, payroll taxes, and stock-based compensation), laboratory supplies and consumables, depreciation and maintenance on equipment, and allocated facilities and information technology (“IT”) costs. Research and Development Expenses The Company charges research and development costs to expenses as incurred, including lab and automation development costs. The expenses primarily consist of personnel costs (salaries, bonuses, stock-based compensation, payroll taxes, and benefits); laboratory supplies and consumables; costs of processing samples for research, product development, collaborations, and studies; depreciation and maintenance on equipment; and allocated facilities and IT costs. Stock-Based Compensation For options granted to employees, non-employees, and directors, stock-based compensation is measured at grant date based on the fair value of the award. The Company determines the grant-date fair value of options using the Black-Scholes option-pricing model, except for certain performance-based awards for which an alternative valuation method may be used. The Company determines the fair value of restricted stock unit awards using the closing market price of the Company’s common stock on the date of grant. The grant-date fair value of awards is amortized over the employees’ requisite service period on a straight-line basis, or the non-employees’ vesting period as the goods are received or services rendered. Forfeitures are accounted for as they occur. Additionally, the Company’s 2019 Employee Stock Purchase Plan (the “ESPP”) is deemed to be a compensatory plan and therefore is included in stock-based compensation expense. Inputs used in Black-Scholes option-pricing models to measure fair value of options are summarized as follows: Expected Term. The expected term is calculated using the simplified method, which is available if there is insufficient historical data about exercise patterns and post-vesting employment termination behavior. The simplified method is based on the vesting period and the contractual term for each grant, or for each vesting tranche for awards with graded vesting. The midpoint of the vesting date and the contractual expiration date is used as the expected term under this method. For awards with multiple vesting tranches, the assumed period for each tranche is computed separately and then averaged together to determine the expected term for the award. Expected Volatility. The Company used an average historical stock price volatility of a peer group of publicly traded companies to be representative of its expected future stock price volatility, as the Company did not have sufficient trading history for its common stock. For purposes of identifying these peer companies, the Company considered the industry, stage of development, size, and financial leverage of potential comparable companies. For each grant, the Company measured historical volatility over a period equivalent to the expected term. Risk-Free Interest Rate. The risk-free interest rate is based on the implied yield currently available on U.S. Treasury zero-coupon issues with remaining terms equivalent to the expected term of a stock award. Expected Dividend Rate. The Company has not paid and does not anticipate paying any dividends in the near future. Accordingly, the Company has estimated the dividend yield to be zero. Foreign Currency Translation The Company considers the functional currencies of its foreign subsidiaries to be the local currency. Assets and liabilities recorded in foreign currencies are translated at the exchange rate as of the balance sheet date, and costs and expenses are translated at average exchange rates in effect during the period. Equity transactions are translated using historical exchange rates. The effects of foreign currency translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) in the consolidated balance sheets. Comprehensive Loss Comprehensive loss includes all changes in equity (net assets) during the period from nonowner sources. The Company’s comprehensive loss consists of its net loss, its cumulative translation adjustments, and its unrealized gains or losses on available-for-sale debt securities. Income Taxes The Company uses the asset and liability method under ASC Topic 740, Income Taxes, in accounting for income taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax expenses or benefits are the result of changes in the deferred tax assets and liabilities. Valuation allowances are established when necessary to reduce deferred tax assets where it is more likely than not that the deferred tax assets will not be realized. ASC Topic 740 clarifies the accounting for uncertainty in income taxes recognized in the financial statements. ASC Topic 740 provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon audit, including resolutions of any related appeals or litigation processes, based on the technical merits of the position. ASC Topic 740 also provides guidance on measurement, derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the consolidated statements of operations. Accrued interest and penalties are included within the related liability line in the consolidated balance sheets. The Company considers undistributed earnings of its foreign subsidiaries to be indefinitely reinvested and, accordingly, no U.S. income taxes have been provided thereon. Cash and Cash Equivalents Cash equivalents consist of highly liquid investments with maturities at the time of purchase of three months or less. Cash equivalents include bank demand deposits and money market accounts that invest primarily in cash, U.S. Treasury bills, notes, and other obligations issued or guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities, and repurchase agreements secured by such obligations or cash. Cash equivalents also include commercial paper and U.S. Treasury bills, which are marketable debt securities recorded at fair value and accounted for in the same manner as other marketable debt securities described below. Short-term Investments The Company’s investments in marketable debt securities are classified as available-for-sale and recorded at fair value. Investments with original maturities of greater than three months and remaining maturities of less than one year are classified as short-term investments. Investments with maturities beyond one year may be classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. Short-term investments primarily consist of U.S. agency bonds, commercial paper, corporate bonds, asset-backed securities, U.S. Treasury bills, and non-U.S. Government notes. Unrealized gains and losses are included in accumulated other comprehensive income (loss) in stockholders’ equity. Any discount or premium arising at purchase is accreted or amortized to interest income or expense. Realized gains and losses and declines in fair value, if any, judged to be other than temporary are reported in other income (expense), net. When securities are sold, any associated unrealized gain or loss initially recorded as a separate component of stockholders’ equity is reclassified out of stockholders’ equity on a specific-identification basis and recorded in earnings for the period. The Company periodically evaluates whether declines in fair values of its investments below their book value are other-than-temporary. This evaluation consists of several qualitative and quantitative factors regarding the severity and duration of the unrealized loss as well as the Company’s ability and intent to hold the marketable security until a forecasted recovery occurs. Factors considered include quoted market prices, recent financial results and operating trends, implied values from any recent transactions or offers of investee securities, credit quality of debt instrument issuers, other publicly-available information that may affect the value of the marketable security, duration and severity of the decline in value, and management’s strategy and intentions for holding the marketable security. To date, the Company has not recorded any impairment charges on its marketable securities related to other-than-temporary declines in market value. Fair Value Measurements Financial assets and liabilities are recorded at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. Observable inputs reflect market data obtained from independent sources while unobservable inputs reflect market assumptions made by the reporting entity. The three-level hierarchy for the inputs to valuation techniques used to measure fair value is briefly summarized as follows: Level 1 — Unadjusted quoted prices in active markets that are accessible to the reporting entity at the measurement date for identical assets and liabilities. Level 2 — Inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following: • Quoted prices for similar assets and liabilities in active markets. • Quoted prices for identical or similar assets or liabilities in markets that are not active. • Observable inputs other than quoted prices that are used in the valuation of the assets or liabilities (e.g., interest rate and yield curve quotes at commonly quoted intervals). • Inputs that are derived principally from or are corroborated by observable market data by correlation or other means. Level 3 — Unobservable inputs for the assets or liabilities (i.e., supported by little or no market activity). Level 3 inputs include management’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Accounts Receivable, Net Trade accounts receivable are recorded at the invoiced amount and are noninterest bearing. At each reporting period, management reviews all outstanding customer balances to determine if the facts and circumstances of each customer relationship indicate the need for a reserve. A reserve is recorded when it is probable that a loss has been incurred based on past events and conditions existing at the date of the financial statements, and the loss is reasonably estimated. Inventory and Other Deferred Costs Inventory, consisting of supplies used in fulfilling customer contracts, are valued at the lower of cost or net realizable value. Cost is determined using actual costs, on a first-in, first-out basis. Other deferred costs relate to work in process for costs incurred on customer contracts that have not been completed or recognized as revenue. Other deferred costs represent materials used in sequencing services, labor, and overhead allocations. Property and Equipment, Net Property and equipment are recorded at cost, less accumulated depreciation and amortization, and are depreciated on a straight-line basis over the estimated useful lives of the related assets, which is generally three to five years for computer equipment, two years for software, three years for furniture and equipment, and five years for machinery and equipment. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the related asset. Upon retirement or sale, the cost and related accumulated depreciation and amortization are removed from the consolidated balance sheet, and the resulting gain or loss is reflected in the consolidated statements of operations. Maintenance and repairs that are not considered improvements and do not extend the useful lives of the assets are charged to expense as incurred. Construction-in-process assets consist primarily of computer equipment and machinery and equipment that have not yet been placed in service. These assets are stated at cost and are not depreciated. Once the assets are placed into service, assets are reclassified to the appropriate asset class based on their nature and depreciated in accordance with the useful lives above. Leases The Company categorizes leases with contractual terms longer than 12 months as either operating or finance leases. Finance leases are generally those leases that allow the Company to substantially utilize or pay for the entire asset over its estimated life. All other leases are categorized as operating leases. As of December 31, 2022, the Company had no finance leases. Certain lease contracts include obligations to pay for other services, such as maintenance. The Company elected to account for these other services as a component of the lease (i.e., the Company elected the practical expedient not to separate lease and non-lease components). Lease liabilities are recognized at the present value of the fixed lease payments using a discount rate based on the Company’s current borrowing rate at the lease commencement date, adjusted for various factors including level of collateralization and term (the “incremental borrowing rate”), unless the rate implicit in the lease is readily determinable. The current portion of lease liabilities is included in “Accrued and other current liabilities.” Lease assets are recognized based on the initial present value of the fixed lease payments plus any direct costs from executing the leases and any lease prepayments. Lease assets are presented as “Operating lease right-of-use assets” as a long-term asset. Leasehold improvements are capitalized at cost and amortized over the lesser of their expected useful life or the lease term. Costs associated with operating lease assets are recognized on a straight-line basis within operating expenses over the term of the lease. The Company has made an accounting policy election not to recognize right-of-use assets and lease liabilities that arise from leases with a term of 12 months or less. Fixed lease payments are recognized as an expense on a straight-line basis over the lease term. Variable lease costs are amounts owed by us to a lessor that are not fixed, such as reimbursement for common area maintenance, operating expenses, utilities, or other costs that are subject to fluctuation from period to period. The Company has also elected to include expenses related to leases with a term of one month or less in the short-term lease cost disclosure. Recent Accounting Pronouncements New Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The accounting update also made minor changes to the impairment model for available-for-sale debt securities. The Company will adopt the new guidance as of the beginning of the first quarter of 2023 by means of a cumulative-effect adjustment to opening retained earnings and does not expect adoption to have a material impact on the consolidated financial statements. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | Note 3. Rev enue The Company disaggregates revenue by the following four customer types: • Pharma tests and services includes sales of testing services and data analytics for clinical trials and research to pharmaceutical companies in support of their drug development programs. Individual contracts typically contemplate a single project and involve a wide range of tests and analytics deliverables from the Company that are suitable for each particular project. • Enterprise sales includes sales of tumor profiling and diagnostic tests directly to other businesses as an input to their products. The Company is typically contracted to deliver a limited number of tests and analytics deliverables, but in high volume over time, and may offer tiered pricing. Revenue from the Company's partnership with Natera to provide advanced tumor analysis for use in Natera's MRD testing offerings makes up substantially all of the revenue in this category. • Population sequencing includes sales of genomic sequencing services and data analytics to support large-scale genetic research programs. The Company is typically contracted to deliver a similar type of test and analytic across a large volume of samples, and has historically received partial prepayment prior to performance. Revenue from the Company's partnership with the VA MVP to provide population sequencing accounts for all of the revenue in this category. • Other includes sales of genomic tests and analytics to universities and non-profits. The following table presents the Company’s revenue disaggregated by customer type (in thousands): Year Ended December 31, 2022 2021 2020 Pharma tests and services $ 29,552 $ 30,282 $ 21,396 Enterprise sales 26,641 8,774 479 Population sequencing 8,443 45,671 56,154 Other 411 767 619 Total revenue $ 65,047 $ 85,494 $ 78,648 Revenue from countries outside of the United States, based on the billing addresses of customers, represented 9 %, 8 %, and 5 % of the Company’s revenue for the years ended December 31, 2022, 2021 and 2020, respectively. Contract Assets and Liabilities Contract assets as of December 31, 2022 and 2021 were immaterial. Amounts collected in advance of services being provided are deferred as current liabilities in the consolidated balance sheets. The associated revenue is recognized and the contract liability is reduced as contracted services are subsequently performed. The balance of contract liabilities was $ 1.3 million and $ 4.0 million as of December 31, 2022 and 2021, respectively. Revenue recognized in 2022, 2021, and 2020 that were included in the contract liability balance at the beginning of each reporting period were $ 3.5 million, $ 19.1 million, and $ 33.8 million, respectively. |
Balance Sheet Details
Balance Sheet Details | 12 Months Ended |
Dec. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Details | Note 4. Balance Sheet Details Inventory and other deferred costs consist of the following (in thousands): December 31, 2022 2021 Raw materials $ 6,384 $ 4,081 Other deferred costs 2,207 1,529 Total inventory and other deferred costs $ 8,591 $ 5,610 Property and equipment, net consists of the following (in thousands): December 31, 2022 2021 Machinery and equipment $ 21,537 $ 15,877 Computer equipment 17,803 13,286 Computer software costs 3,010 2,213 Furniture and fixtures 2,152 517 Construction in progress 3,989 5,393 Leasehold improvements 40,370 1,357 Total 88,861 38,643 Less: accumulated depreciation and amortization ( 26,926 ) ( 18,993 ) Property and equipment, net $ 61,935 $ 19,650 Depreciation and amortization expense for the years ended December 31, 2022, 2021, and 2020 was $ 8.4 million, $ 6.0 million, and $ 5.8 million, respectively. Restricted cash. The Company’s restricted cash is pledged as collateral for a standby letter of credit related to a property lease. The balance of restricted cash was $ 1.8 million as of December 31, 2022 and 2021, and is included in other long-term assets. Accrued and other current liabilities consist of the following (in thousands): December 31, 2022 2021 Accrued compensation $ 9,008 $ 10,673 Operating lease liabilities 5,391 3,728 Loans—current portion (Note 6) 2,218 1,806 Accrued liabilities 1,700 883 Employee ESPP contributions 543 517 Customer deposits 30 382 Accrued taxes 123 121 Total accrued and other current liabilities $ 19,013 $ 18,110 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 5. Fair Value Measurements The following tables show the Company’s financial assets and liabilities measured at fair value on a recurring basis and the level of inputs used in such measurements as of December 31, 2022 and 2021 (in thousands): December 31, 2022 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Fair Value Level Assets Cash and cash equivalents: Cash $ 5,615 $ — $ — $ 5,615 Money market funds 31,401 — — 31,401 Level 1 Commercial paper 47,135 — ( 15 ) 47,120 Level 2 U.S. government securities 4,991 1 — 4,992 Level 2 Total cash and cash equivalents 89,142 1 ( 15 ) 89,128 Short-term investments: Commercial paper 13,097 — ( 51 ) 13,046 Level 2 U.S. agency securities 9,445 — ( 105 ) 9,340 Level 2 U.S. government securities 56,658 1 ( 515 ) 56,144 Level 2 Total short-term investments 79,200 1 ( 671 ) 78,530 Total assets measured at fair value $ 168,342 $ 2 $ ( 686 ) $ 167,658 December 31, 2021 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Fair Value Level Assets Cash and cash equivalents: Cash $ 6,094 $ — $ — $ 6,094 Money market funds 49,488 — — 49,488 Level 1 Commercial paper 50,005 — ( 2 ) 50,003 Level 2 Total cash and cash equivalents 105,587 — ( 2 ) 105,585 Short-term investments: Commercial paper 18,068 — ( 2 ) 18,066 Level 2 U.S. government securities 50,040 — ( 15 ) 50,025 Level 2 Corporate debt securities 18,059 — ( 7 ) 18,052 Level 2 U.S. agency securities 19,738 — ( 35 ) 19,703 Level 2 Asset-backed securities 75,787 — ( 154 ) 75,633 Level 2 Total short-term investments 181,692 — ( 213 ) 181,479 Total assets measured at fair value $ 287,279 $ — $ ( 215 ) $ 287,064 Realized gains or losses on marketable debt securities are immaterial for the periods presented. No security has been in an unrealized loss position for 12 months or greater. The Company determined that it did have the ability and intent to hold all marketable securities that have been in a continuous loss position until maturity or recovery. As of December 31, 2022, the Company does not consider any of its marketable debt securities to be other-than-temporarily impaired. The Company’s marketable debt securities at December 31, 2022 have maturities due in one year or less. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Loans | Note 6. L oans Equipment and Software Loans In April 2021, the Company entered into a payment agreement with a financing entity to finance the purchase of $ 2.4 million of certain internal use software licenses and related software maintenance from a vendor. The financing entity and vendor are not related. The Company is obligated to repay the financed amount in three equal payments of $ 0.8 million in May 2021, May 2022, and May 2023. The payment agreement is noninterest bearing and the Company concluded that such interest rate ( zero ) did not represent fair and adequate compensation to the financing entity for the use of the related funds. Accordingly, the Company approximated the rate at which it could obtain financing of a similar nature from other sources at the date of the transaction. The resulting imputed interest rate was 7 % and was used to establish the present value of the payment agreement. The discount is recognized as interest expense in the consolidated statements of operations over the life of the payment agreement. The Company entered into two more payment agreements in April 2021 and July 2022, with the same financing entity, to finance the purchase of $ 3.1 million of computer hardware and related hardware maintenance and $ 1.3 million of internal use software licenses and related ongoing support, respectively. The Company is required to pay three equal payments of $ 1.0 million in July 2021, June 2022, and June 2023 for the first agreement, and three equal payments of $ 0.4 million in September 2022, September 2023, and September 2024 for the second agreement. The nature of these agreements and resulting accounting treatment are the same as the payment agreement described in the preceding paragraph, except the imputed interest rate was 9 % for the July 2022 agreement. The total initial present value of the payment agreements was $ 6.4 million and presented as proceeds from loans in the consolidated statements of cash flows. Such proceeds were used to purchase equipment, software, and related maintenance and are reflected as cash outflows in the investing and operating activities sections in the consolidated statements of cash flows. Repayments are presented as financing cash outflows in the consolidated statements of cash flows. Interest expense for the years ended December 31, 2022 and 2021 was $ 0.2 million each. Amounts outstanding under the payment agreements are as follows (in thousands): December 31, 2022 2021 Principal $ 2,730 $ 3,714 Less: unamortized discount ( 134 ) ( 220 ) Total carrying amount 2,596 3,494 Less: current portion (included in accrued and other current liabilities) ( 2,218 ) ( 1,806 ) Long-term portion (included in other long-term liabilities) $ 378 $ 1,688 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Note 7. Le ases In 2015, the Company entered into a noncancelable operating lease for approximately 31,280 square feet of space used for its current laboratory operations. In 2020, the lease term was extended through November 2027 and includes an option to extend the term for a period of three years at prevailing market rates. The Company determined the extension option is not reasonably certain to be exercised. The lease contains a leasehold improvement incentive and escalating rent payments. In 2021, the Company amended the lease to expand the leased premises by an additional 14,710 square feet of space (the “Expansion Lease”). The Expansion Lease expired at the end of December 2022 and was not extended . In 2019, the Company entered into a noncancelable three-year operating lease for a co-located data center space. In 2022, the lease term was extended through September 2025 and includes an option to extend the term for a period of three years immediately following the expiration of the term. The Company determined the extension option is not reasonably certain to be exercised. In 2021, the Company entered into a noncancelable operating lease for approximately 100,000 square feet of space in Fremont, California to be used as the Company’s corporate headquarters and expanded laboratory facility. The lease term is 13.5 years and commenced in October 2022. The Company gained early access to the premises upon entering the lease for the purpose of constructing and installing tenant improvements, for which the landlord agreed to contribute up to $ 15.5 million, $ 13.2 million of which has been received through December 31, 2022. Such contributions become payable only upon approval by the landlord of applications for payment and are accounted for as lease incentives once the Company has incurred costs and the amounts qualify for reimbursement by the landlord. The lease incentives are then recognized as reductions to lease expense over the remainder of the lease term. The lease expires at the end of March 2036 and includes two options to extend the term for a period of five-years per option at prevailing market rates. The Company determined the extension options are not reasonably certain to be exercised. The lease also contains escalating rent payments. Due to delays in the completion of the work necessary for the Company to move into the facility, the lease commencement date was delayed from the original intended date. This change in circumstances during the third quarter of 2022 triggered a reassessment of the lease term and consequently a remeasurement of the lease liability and corresponding adjustment to the carrying amount of the right-of-use asset. The Company also has a noncancelable operating lease for approximately 5,100 square feet of space in Shanghai, China used for its China operations, which expires at the end of June 2024 , as well as various other short-term leases. Components of lease cost were as follows (in thousands): Year Ended December 31, 2022 2021 2020 Lease cost Operating lease cost $ 8,530 $ 5,009 $ 2,295 Short-term lease cost 122 364 227 Variable lease cost 1,411 1,152 748 Total lease cost $ 10,063 $ 6,525 $ 3,270 As of December 31, 2022, the Company’s operating leases had a weighted-average remaining lease term of 11.1 years and a weighted-average discount rate of 10.5 %. The Company’s discount rates are based on estimates of its incremental borrowing rate, as the discount rates implicit in the Company’s lease cannot be readily determined. Future lease payments under operating leases as of December 31, 2022 were as follows (in thousands): Amount 2023 $ 5,711 2024 7,895 2025 7,808 2026 7,168 2027 7,189 2028 and thereafter 48,013 Total future minimum lease payments 83,784 Less: imputed interest ( 37,352 ) Present value of future minimum lease payments 46,432 Less: current portion of operating lease liability (included in accrued and other current liabilities) ( 5,391 ) Long-term operating lease liabilities $ 41,041 Cash paid for operating lease liabilities, included in cash flows from operating activities in the consolidated statements of cash flows, for the years ended December 31, 2022, 2021 and 2020, was $ 4.4 million, $ 3.3 million and $ 1.7 million, respectively. Right-of-use assets obtained in exchange for new operating lease liabilities, during 2022, 2021 and 2020, were $ 3.1 million, $ 46.5 million and $ 9.8 million, respectively. Additionally, the remeasurement of the Fremont headquarters lease liability in the third quarter of 2022 resulted in a $ 12.9 million reduction to right-of-use assets. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 8. Sto ck-Based Compensation 2011 Equity Incentive Plan In 2011, the Company established its 2011 Equity Incentive Plan (the “2011 Plan”) that provided for the granting of stock options to employees and nonemployees of the Company. Under the 2011 Plan, the Company had the ability to issue incentive stock options (“ISOs”), nonstatutory stock options (“NSOs”), stock appreciation rights, restricted stock awards, and restricted stock unit awards (“RSUs”). Options under the 2011 Plan could be granted for periods of up to 10 years. The ISOs could be granted at a price per share not less than the fair value at the date of grant. 2019 Equity Incentive Plan The Company’s board of directors adopted and the Company’s stockholders approved the 2019 Equity Incentive Plan (the “2019 Plan”) in May 2019 and June 2019, respectively. The 2019 Plan became effective in June 2019 in connection with the Company’s IPO, and no further grants will be made under the 2011 Plan. Shares reserved and remaining available for issuance under the 2011 Plan were added to the 2019 Plan reserve upon its effectiveness. The 2019 Plan provides for the grant of ISOs, NSOs, stock appreciation rights, restricted stock awards, RSUs, performance-based stock awards, and other forms of equity compensation. Additionally, the 2019 Plan provides for the grant of performance cash awards. ISOs may be granted only to the Company’s employees and to any of the Company’s parent or subsidiary corporation’s employees. All other awards may be granted to employees, including officers, and to non-employee directors and consultants of the Company and any of the Company’s affiliates. The exercise price of a stock option generally cannot be less than 100 % of the fair market value of the Company’s common stock on the date of grant. Options under the 2019 Plan may be granted for periods of up to 10 years. 2020 Inducement Plan The Compensation Committee of the Company’s board of directors adopted the 2020 Inducement Plan (the “Inducement Plan”) in May 2020, which became effective upon adoption. The Inducement Plan was adopted without stockholder approval, as permitted by the Nasdaq Stock Market rules. The Inducement Plan provides for the grant of equity-based awards, including NSOs, stock appreciation rights, restricted stock awards, RSUs, performance-based stock awards, and other forms of equity compensation, and its terms are substantially similar to the stockholder-approved 2019 Plan. In accordance with relevant Nasdaq Listing Rules, awards under the Inducement Plan may only be made to individuals not previously employees or non-employee directors of the Company (or following such individuals’ bona fide period of non-employment with the Company), as an inducement material to the individuals entry into employment with the Company. 2019 Employee Stock Purchase Plan The Company’s board of directors adopted and the Company’s stockholders approved the 2019 Employee Stock Purchase Plan (the “ESPP”) in May 2019 and June 2019, respectively. Subject to any plan limitations, the ESPP allows eligible employees to contribute, normally through payroll deductions, up to 15 % of their earnings for the purchase of the Company’s common stock at a discounted price per share. The price at which common stock is purchased under the ESPP is equal to 85 % of the fair market value of the Company’s common stock on the first or last day of the offering period, whichever is lower. The ESPP provides for separate six-month offering periods beginning on May 1 and November 1 of each year. Shares of common stock available for issuance under the Company’s equity incentive plans at December 31, 2022 were as follows: December 31, 2022 Outstanding stock awards 8,493,614 Reserved for future award grants 1,958,949 Reserved for future ESPP 615,879 Total common stock reserved for stock awards 11,068,442 Stock Option Activity A summary of the Company’s stock option activity (excluding performance-based stock option activity summarized further below) under the 2011 Plan, 2019 Plan, and Inducement Plan for the years ended December 31, 2022, 2021, and 2020 is as follows: Outstanding Options (in thousands, except share and per share data) Number of Weighted- Weighted- Aggregate Balance—December 31, 2019 4,731,435 $ 4.94 6.60 $ 29,730 Options granted 1,357,741 12.05 Options exercised ( 908,691 ) 3.07 Options forfeited or expired ( 232,179 ) 7.87 Balance—December 31, 2020 4,948,306 $ 7.10 6.71 $ 146,044 Options granted 1,026,276 21.26 Options exercised ( 862,056 ) 2.43 Options forfeited or expired ( 110,107 ) 13.88 Balance—December 31, 2021 5,002,419 $ 10.66 6.89 $ 28,308 Options granted 1,429,295 4.80 Options exercised ( 488,187 ) 2.07 Options forfeited or expired ( 492,395 ) 10.57 Balance—December 31, 2022 5,451,132 $ 9.90 5.31 $ 7 Options vested and exercisable as of December 31, 2022 3,740,205 $ 9.03 3.76 $ 7 Options granted to new hires generally vest over a four-year period, with 25 % vesting at the end of one year and the remaining vesting monthly thereafter. Options granted as merit awards generally vest monthly over a three - or four-year period . The aggregate intrinsic value of unexercised stock options is calculated as the difference between the closing price of the Company’s common stock of $ 1.98 on December 31, 2022 and the exercise prices of the underlying stock options. Out-of-the money stock options are excluded from the aggregate intrinsic value. The weighted-average grant date fair value of options granted was $ 3.21 , $ 13.14 , and $ 7.17 per share for the years ended December 31, 2022, 2021, and 2020, respectively. As of December 31, 2022, the unrecognized stock-based compensation of unvested options was $ 10.3 million, which is expected to be recognized over a weighted-average period of 2.4 years. Valuation of Stock Options The Company estimated the fair value of stock options (excluding performance-based stock options discussed below) using the Black-Scholes option-pricing model. The fair value of stock options is recognized on a straight-line basis over the requisite service periods of the awards. The fair value of stock options was estimated using the following range of assumptions: Year Ended December 31, 2022 2021 2020 Expected term (in years) 5.50 - 6.08 5.50 - 6.27 5.50 - 6.40 Volatility 68.37 - 77.68 % 67.97 - 69.90 % 61.74 - 68.18 % Risk-free interest rate 1.62 - 4.23 % 0.62 - 1.39 % 0.36 - 1.66 % Dividend yield – % – % – % Performance-Based Stock Option Activity In March 2020, the Company’s board of directors granted the Company’s then Chief Executive Officer a performance-based stock option (“PSO”) to purchase 421,000 shares of common stock. The PSO was subject to the Chief Executive Officer’s continued service to the Company through the date of vesting and, if the performance condition were not met within 10 years from the date of grant, the PSO would be canceled. The shares subject to the PSO would vest in full if the Company’s average market capitalization is equal to or greater than $ 1 billion over a 30 calendar day period. Upon a change in control, the vesting of the shares subject to the PSO would accelerate on a pro rata basis based on the price per share in such change in control transaction multiplied by the price per share at such time divided by $1 billion, with up to 100 % of the shares eligible for such accelerated vesting. During the last quarter of 2020, the Company’s average market capitalization was equal to or greater than $ 1 billion over a 30 calendar day period and the PSO vested in full. A summary of the Company’s performance-based stock option activity under the 2019 Plan for the years ended December 31, 2022, 2021 and 2020 is as follows: Outstanding Performance-Based Options (in thousands, except share and per share data) Number of Weighted- Weighted- Aggregate Balance—December 31, 2019 — $ — — $ — Options granted 421,000 5.10 Options exercised — Options cancelled — Balance—December 31, 2020 421,000 $ 5.10 9.21 $ 13,266 No activities — Balance—December 31, 2021 421,000 $ 5.10 8.21 $ 3,861 No activities — Balance—December 31, 2022 421,000 $ 5.10 1.00 $ — Options vested and exercisable as of December 31, 2022 421,000 $ 5.10 1.00 $ — As of December 31, 2022, there is no remaining unrecognized stock-based compensation cost. Valuation of Performance-Based Stock Options The Company estimated the fair value of the PSO using a Monte Carlo Model and the following assumptions and estimates: 2020 Performance period (in years) 10.00 Derived service period (in years) 4.55 Volatility 63.60 % Risk-free interest rate 1.02 % Dividend yield –% Estimated fair value (per share) $ 3.31 Restricted Stock Units Activity and Valuation A summary of the Company’s RSU activity under the 2019 Plan and Inducement Plan for the years ended December 31, 2022, 2021 and 2020 is as follows: Unvested Restricted Stock Units (in thousands, except share and per share data) Number of Weighted- Aggregate Balance—December 31, 2019 120,000 $ 8.86 $ 1,308 RSUs granted 648,000 9.93 RSUs vested ( 130,945 ) 7.09 2,991 RSUs forfeited ( 17,837 ) 6.83 Balance—December 31, 2020 619,218 $ 10.41 $ 22,670 RSUs granted 1,387,656 18.05 RSUs vested ( 266,119 ) 10.93 5,521 RSUs forfeited ( 61,059 ) 18.45 Balance—December 31, 2021 1,679,696 $ 16.35 $ 23,969 RSUs granted 2,071,201 4.86 RSUs vested ( 897,871 ) 11.74 3,189 RSUs forfeited ( 231,544 ) 10.94 Balance—December 31, 2022 2,621,482 $ 9.33 $ 5,191 The Company grants RSUs to employees to receive shares of the Company’s common stock. The RSUs awarded are subject to each individual’s continued service to the Company through each applicable vesting date. RSUs granted to new hires generally vest annually over a four-year period. RSUs granted as merit awards generally vest semi-annually over a three - or four-year period. The Company accounts for the fair value of RSUs using the closing market price of the Company’s common stock on the date of grant. The aggregate fair value of unvested RSUs is calculated using the closing price of the Company’s common stock of $ 1.98 on December 31, 2022. As of December 31, 2022, the unrecognized stock-based compensation cost of unvested RSUs was $ 21.9 million, which is expected to be recognized over a weighted-average period of 2.6 years. The Company’s default tax withholding method for RSUs is the sell-to-cover method, in which shares with a market value equivalent to the tax withholding obligation are sold on behalf of the holder of the RSUs upon vesting and settlement to cover the tax withholding liability and the cash proceeds from such sales are remitted by the Company to taxing authorities. ESPP Activity and Valuation During the years ended December 31, 2022, 2021 and 2020, 416,514 , 128,289 and 164,164 shares of common stock were purchased under the ESPP, respectively. The fair value of stock purchase rights granted under the ESPP was estimated using the following range of assumptions : Year Ended December 31, 2022 2021 2020 Expected term (in years) 0.49 - 0.5 0.49 0.49 - 0.5 Volatility 82.35 - 112.07 % 55.92 - 74.88 % 65.15 - 102.10 % Risk-free interest rate 1.49 - 4.58 % 0.04 - 0.06 % 0.11 - 0.12 % Dividend yield –% –% –% Fair value $ 1.26 - $ 2.23 $ 6.30 - $ 8.21 $ 4.29 - $ 8.12 Stock-based Compensation Expense The following is a summary of stock-based compensation expense by function (in thousands): Year Ended December 31, 2022 2021 2020 Cost of revenue $ 1,922 $ 1,414 $ 854 Research and development 5,256 4,064 1,773 Selling, general and administrative 12,255 8,900 5,611 Total stock-based compensation expense $ 19,433 $ 14,378 $ 8,238 The following is a summary of stock-based compensation expense by award type (in thousands): Year Ended December 31, 2022 2021 2020 Stock options $ 8,560 $ 8,585 $ 4,729 Performance-based stock options — — 1,392 RSUs 9,990 4,765 1,401 ESPP 883 1,028 716 Total stock-based compensation expense $ 19,433 $ 14,378 $ 8,238 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9. Commitments and Contingencies Contingencies On August 2, 2022, the Company filed a complaint in the U.S. District Court for the District of Colorado against Foresight Diagnostics Inc. (“Foresight”) for patent infringement. The complaint is based on the Company’s U.S. Patent No. 10,450,611 (the “’611 Patent”), entitled “Personalized Genetic Testing,” our U.S. Patent No. 11,299,783 (the “’783 Patent”), entitled “Methods and Systems For Genetic Analysis,” and our U.S. Patent No. 11,384,394 (the “’394 Patent”), entitled “Methods and Systems for Genetic Analysis.” The ‘611 Patent was granted on October 22, 2019 and relates to methods for personalized genetic testing by performance of sequencing assays on biological samples. The ‘783 Patent was granted on April 12, 2022 and relates to methods for sample processing and data analysis by performance of sequencing assays on biological samples that can aid in the diagnosis, monitoring, treatment, and prevention of one or more diseases. The ‘394 Patent was granted on July 12, 2022 and relates to methods for sample processing and analysis to aid in the diagnosis, monitoring, treatment, and prevention of disease. On August 17, 2022, the Company filed an amended complaint for patent infringement against Foresight. The amended complaint added our U.S. Patent No. 11,408,033 (the “’033 Patent”), entitled “Methods and Systems for Genetic Analysis.” The ‘033 Patent was granted on August 9, 2022 and relates to methods for sample processing and analysis to aid in the diagnosis, monitoring, treatment, and prevention of disease. The Company is seeking remedies including injunctive relief, damages and costs. On October 12, 2022, Foresight filed its answer and counterclaims in the matter, alleging and seeking declaratory judgement that its solid tumor recurrence test does not infringe the Company’s asserted patents and that the claims of our asserted patents are invalid and/or unenforceable. On November 2, 2022, the Company filed its answer to Foresight’s counterclaims. The Company believes the assertions in Foresight's counterclaims are without merit and intends to vigorously defend against these counterclaims. Between November 30, 2022 and February 11, 2023, Foresight filed four inter partes review petitions with the USPTO, seeking to invalidate the four patents that we are asserting against Foresight in our patent infringement action. Also on November 30, 2022, Foresight filed a motion to stay our patent infringement action in the U.S. District Court for the District of Colorado pending the resolution of the inter partes review proceedings that Foresight has requested. On December 21, 2022, we filed our opposition to Foresight’s motion to stay, and on December 29, 2022 Foresight filed its reply in support of the stay. On January 5, 2023, the Court held a hearing on Foresight’s motion and on January 24, 2023, the Court granted Foresight’s motion to stay our patent infringement action pending the resolution of the inter partes review proceedings. The USPTO has yet to issue a decision regarding whether it will institute the inter partes reviews. Litigation is inherently unpredictable, and, except for events that have already occurred, it is too early in the foregoing proceedings to predict the outcome of these proceedings, or any impact they may have on us. As such, the estimated financial effect associated with this complaint cannot be made as of the date of filing of this Annual Report on Form 10-K. Litigation is a significant ongoing expense with an uncertain outcome and may in the future be a material expense for us. Management believes this investment is important to protect our intellectual property position, even recognizing the uncertainty of the outcome. The Company is also subject to claims and assessments from time to time in the ordinary course of business. Accruals for litigation and loss contingencies are reflected in the consolidated financial statements based on management’s assessment, including the advice of legal counsel, of the expected outcome of litigation or other dispute resolution proceedings and/or the expected resolution of contingencies. Liabilities for estimated losses are accrued if the potential losses from any claims or legal proceedings are considered probable and the amounts can be reasonably estimated. Significant judgment is required in both the determination of probability of loss and the determination as to whether the amount can be reasonably estimated. Accruals are based only on information available at the time of the assessment due to the uncertain nature of such matters. As additional information becomes available, management reassesses potential liabilities related to pending claims and litigation and may revise its previous estimates, which could materially affect the Company’s consolidated results of operations in a given period. Except for the matter described in the first paragraph of this Note 9, as of December 31, 2022, the Company was not involved in any material adverse legal proceedings. Indemnification In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future, but that have not yet been made. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. However, the Company may record charges in the future as a result of these indemnification obligations. |
Basic and Diluted Net Loss Per
Basic and Diluted Net Loss Per Common Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss Per Common Share | Note 10. Basic and Diluted Net Loss Per Common Share Basic net loss per common share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per common share is computed using net loss and the weighted-average number of common shares outstanding plus potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include the assumed exercise of outstanding in-the-money stock options and common stock warrants, assumed release of outstanding RSUs, and assumed issuance of common stock under the ESPP using the treasury stock method. The Company incurred net losses in the periods presented, and as a result, potential common shares from stock options, RSUs, and the assumed release of outstanding shares under the ESPP were not included in the diluted shares used to calculate net loss per share, as their inclusion would have been anti-dilutive. The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share amounts): Year Ended December 31, 2022 2021 2020 Net loss $ ( 113,315 ) $ ( 65,226 ) $ ( 41,280 ) Weighted-average common shares outstanding—basic and diluted 45,704,805 43,886,730 34,374,903 Net loss per common share—basic and diluted $ ( 2.48 ) $ ( 1.49 ) $ ( 1.20 ) The following table sets forth the potentially dilutive shares excluded from the computation of diluted net loss per common share because their effect was anti-dilutive: Year Ended December 31, 2022 2021 2020 Options to purchase common stock 5,872,132 5,423,419 5,369,306 Unvested RSUs 2,621,482 1,679,696 619,218 ESPP 627,740 87,367 58,802 Total 9,121,354 7,190,482 6,047,326 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11. Income Taxes For financial reporting purposes, loss before income taxes includes the following components (in thousands): Year Ended December 31, 2022 2021 2020 Domestic $ ( 113,558 ) $ ( 65,415 ) $ ( 41,404 ) Foreign 283 203 181 Loss before income taxes $ ( 113,275 ) $ ( 65,212 ) $ ( 41,223 ) Provision for Income Taxes The provision for income taxes consists of the following (in thousands): Year Ended December 31, 2022 2021 2020 Current: Federal $ — $ — $ — State 5 — 26 Foreign 66 43 31 Total current 71 43 57 Deferred: Foreign ( 31 ) ( 29 ) — Total deferred ( 31 ) ( 29 ) — Provision for income taxes $ 40 $ 14 $ 57 Income tax provision related to continuing operations differ from the amounts computed by applying the statutory income tax rate of 21 % to pretax loss in 2022, 2021, and 2020 as follows: Year Ended December 31, 2022 2021 2020 Expected tax (benefit) at federal statutory rate ( 21 %) ( 21 %) ( 21 %) Effect of: State taxes ( 6 %) ( 9 %) ( 10 %) Change in valuation allowance 28 % 36 % 38 % Stock-based compensation 1 % ( 3 %) ( 4 %) Research and development credit ( 2 %) ( 3 %) ( 3 %) Other –% –% –% Effective tax rate – % – % – % Tax Law Changes On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), which includes several U.S. income tax provisions related to, among other things, net operating loss carrybacks, alternative minimum tax credits, modifications to interest expense limitations, and an option to defer payroll tax payments for a limited period. Based on the guidance in the CARES Act, the Company deferred the payment of $ 0.7 million of certain payroll taxes, of which $ 0.3 million was paid in 2021 and the remaining balance was paid in 2022. The other provisions of the CARES Act did not have a significant impact on the Company’s consolidated financial statements. Deferred Tax Assets and Liabilities Deferred income taxes reflect the net tax effects of loss and credit carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets for federal and state income taxes are as follows (in thousands): December 31, 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 72,408 $ 61,219 Research and development credits 16,824 12,127 Capitalized research and development 11,972 — Deferred revenue 38 164 Accruals and reserves 1,914 2,846 Stock-based compensation 5,197 4,435 Operating lease liabilities 13,455 16,406 Other intangibles 267 321 Other 236 115 Total gross deferred tax assets 122,311 97,633 Less: valuation allowance ( 114,483 ) ( 81,628 ) Total deferred tax assets 7,828 16,005 Deferred tax liabilities: Property and equipment ( 108 ) ( 356 ) Operating lease right-of-use assets ( 7,659 ) ( 15,620 ) Total deferred tax liabilities ( 7,767 ) ( 15,976 ) Net deferred tax assets $ 61 $ 29 Realization of deferred tax assets is dependent upon future earnings, if any, the timing and amount of which are uncertain. Because of the Company’s lack of U.S. earnings history, the net U.S. deferred tax assets have been fully offset by a valuation allowance. The valuation allowance increased by $ 32.9 million and $ 24.8 million during the years ended December 31, 2022 and 2021, respectively. Net Operating Loss and Tax Credit Carryforwards As of December 31, 2022, the Company had a net operating loss carryforward for federal income tax purposes of approximately $ 249.1 million, of which $ 86.1 million will begin to expire in 2031 . The Company had a total state net operating loss carryforward of approximately $ 229.7 million, which will begin to expire in 2031 . Utilization of some of the federal and state net operating loss and credit carryforwards are subject to annual limitations due to the “change in ownership” provisions of the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitations may result in the expiration of net operating losses and credits before utilization. As of December 31, 2022, the Company has federal credits of approximately $ 8.6 million, which will begin to expire in 2031 and state research credits of approximately $ 8.2 million, which have no expiration date. These tax credits are subject to the same limitations discussed above. Unrecognized Tax Benefits The Company has incurred net operating losses since inception and does not have any significant unrecognized tax benefits. The Company’s policy is to include interest and penalties related to unrecognized tax benefits, if any, within the provision for taxes in the consolidated statements of operations. If the Company is eventually able to recognize its uncertain positions, the effective tax rate would be reduced. The Company currently has a full valuation allowance against its net deferred tax assets, which would impact the timing of the effective tax rate benefit should any of these uncertain tax positions be favorably settled in the future. Any adjustments to the Company’s uncertain tax positions would result in an adjustment of net operating loss or tax credit carryforwards rather than resulting in a cash outlay. The Company files U.S. federal income tax returns and various state income tax returns. Because of net operating losses and research credit carryovers, substantially all the Company’s tax years remain open to examination. The Company has the following activity relating to unrecognized tax benefits (in thousands): December 31, 2022 2021 Beginning balance $ 3,066 $ 2,148 Gross increase—tax position in current period 1,174 918 Ending balance $ 4,240 $ 3,066 Although it is reasonably possible that certain unrecognized tax benefits may increase or decrease within the next 12 months due to tax examination changes, settlement activities, expirations of statute of limitations, or the impact on recognition and measurement considerations related to the results of published tax cases or other similar activities, the Company does not anticipate any significant changes to unrecognized tax benefits over the next 12 months. During the years ended December 31, 2022, 2021, and 2020, no interest or penalties were required to be recognized relating to unrecognized tax benefits. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 12. Subse quent Events In January 2023, the Board of Directors of the Company approved a reduction in the Company’s workforce of approximately 30 % to reduce operating costs and improve operating efficiency. The reduction in workforce is expected to be completed in the first quarter of 2023. The Company estimates that it will incur charges of approximately $ 3 million for severance payments and employee benefits, most of which will be recognized in the first quarter of 2023. Substantially all of the estimated charges are expected to result in future cash expenditures. In February 2023, Company management made a decision to streamline its international operations by closing its operations in China as expeditiously as possible in 2023. The Company expects to incur one-time charges in connection with the closure, including noncash impairments of property and equipment and a lease asset. Such charges cannot be estimated at this time, but the Company does not expect such charges to exceed $ 1.5 million. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding annual reporting. The consolidated financial statements include the accounts of Personalis, Inc. and its wholly owned subsidiaries, Personalis (UK) Ltd. and Personalis (Shanghai) Ltd. All intercompany balances and transactions 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 reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The estimates include, but are not limited to, useful lives assigned to long-lived assets, discount rates for lease accounting, the valuation of stock options, the valuation of stock-based awards, and provisions for income taxes and contingencies. Actual results could differ from these estimates, and such differences could be material to the Company’s consolidated financial position and results of operations. |
Follow-On and At-the-Market Equity Offerings | Follow-On and At-the-Market Equity Offerings In August 2020, the Company completed a follow-on equity offering in which it issued and sold 6,578,947 shares of its common stock at a public offering price of $ 19.00 per share. The Company received net proceeds of $ 117.5 million after deducting underwriting discounts and commissions. The Company also incurred $ 0.4 million of offering costs, including legal, accounting, printing and other offering-related costs. In January 2021, the Company completed a follow-on equity offering in which it issued and sold 3,950,000 shares of its common stock at a public offering price of $ 38.00 per share. The Company received net proceeds of $ 141.1 million after deducting underwriting discounts and commissions. The underwriters of the offering exercised their option to purchase an additional 592,500 shares shortly thereafter, resulting in additional net proceeds of $ 21.2 million after deducting underwriting discounts and commissions. The Company also incurred $ 0.3 million of offering costs, including legal, accounting, printing and other offering-related costs. In December 2021, the Company entered into an At-the-Market Sales Agreement (the “Sales Agreement”) with BTIG, LLC (“BTIG”) under which it may offer and sell its common stock having aggregate sales proceeds of up to $ 100.0 million from time to time through BTIG as its sales agent. BTIG will use commercially reasonable efforts to sell the Company’s common stock from time to time, based upon instructions from the Company (including any price, time or size limits or other customary parameters or conditions the Company may impose). The Company will pay BTIG a commission of up to 3 % of the gross sales proceeds of any common stock sold through BTIC under the Sales Agreement. The Company is not obligated to make any sales of common stock under the Sales Agreement. No shares of the Company’s common stock have been offered or sold under the Sales Agreement. |
Concentration of Credit Risk and Other Risks and Uncertainties | Concentration of Credit Risk and Other Risks and Uncertainties The Company is subject to credit risk from its portfolio of cash and cash equivalents. The Company’s cash and cash equivalents are deposited with high-quality financial institutions. Deposits at these institutions may, at times, exceed federally insured limits. Management believes these financial institutions are financially sound and, accordingly, that minimal credit risk exists. The Company also invests in investment ‑ grade debt instruments and has policy limits for the amount it can invest in any one type of security, except for securities issued or guaranteed by the U.S. government. The goals of the Company’s investment policy are as follows: preservation of principal; liquidity of investments sufficient to meet cash flow requirements; avoidance of inappropriate concentration and credit risk; competitive after ‑ tax rate of returns; and fiduciary control of cash and investments. Under its investment policy, the Company limits the amounts invested in such securities by credit rating, maturity, investment type, and issuer. As a result, management believes that these financial instruments do not expose the Company to any significant concentrations of credit risk. The Company purchases various reagents and sequencing materials from sole source suppliers. Any extended interruption in the supply of these materials could result in the Company’s inability to secure sufficient materials to conduct business and meet customer demand. The Company routinely assesses the creditworthiness of its customers and does not require collateral. The Company has not experienced any material losses related to receivables from individual customers, or groups of customers. The Company maintains an allowance for doubtful accounts, which was $ 0.1 million as of December 31, 2022 and 2021. The Company had no bad debt expense in any of the periods presented. Significant customers are those that represent more than 10% of the Company’s total revenue or accounts receivable balance at each respective balance sheet date. For each significant customer, revenue as a percentage of total revenue and accounts receivable as a percentage of total accounts receivable are as follows: Revenue Accounts Receivable Year Ended December 31, December 31, 2022 2021 2020 2022 2021 Natera, Inc. 41 % 10 % * 43 % 39 % VA MVP 13 % 53 % 71 % * * Merck & Co., Inc. 11 % * * * 15 % AbbVie Inc. * * * * 18 % GSK plc * * * 12 % * Pfizer Inc. * * * 10 % * * Less than 10 % of revenue or accounts receivable |
Revenue Recognition | Revenue Recognition The Company applies the revenue recognition guidance in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“Topic 606”). Revenue Recognition The revenue guidance provides a five-step framework through which revenue is recognized when control of promised goods or services is transferred to a customer at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To determine revenue recognition for arrangements that the Company concludes are within the scope of Topic 606, management performs the following five steps: (i) identifies the contract(s) with a customer; (ii) identifies the performance obligations in the contract(s); (iii) determines the transaction price, including whether there are any constraints on variable consideration; (iv) allocates the transaction price to the performance obligations; and (v) recognizes revenue when (or as) the Company satisfies a performance obligation. At contract inception, once a contract is determined to be within the scope of the new revenue standard, the Company assesses whether individual goods or services promised within each contract are distinct and, therefore, represent separate performance obligations. The Company derives revenue from the sale of sequencing and data analysis services. The Company’s contracts are in the form of a combination of signed agreements, statements of work, and/or purchase orders. The Company accounts for a contract with a customer when there is approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and it is probable that the Company will collect substantially all of the consideration to which it will be entitled. The sequencing and data analysis services are the only distinct services that meet the definition of a performance obligation and are accounted for as one performance obligation under Topic 606. The Company recognizes revenue from such services at the point in time when control of the test results is transferred to the customer. The Company has elected to exclude all sales and value added taxes from the measurement of the transaction price. Sequencing and data analysis services are based on a fixed price per test. Payment terms and conditions vary by contract and customer. The Company’s standard payment terms are typically 90 days or less from the invoice date. In instances where the timing of the Company’s revenue recognition differs from the timing of its invoicing, the Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised services to the customer will be one year or less. After assessing each of its revenue-generating arrangements to determine whether a significant financing component exists, the Company concluded that a significant financing component does not exist in any of its arrangements. The primary purpose of the Company’s invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company’s services and to provide payment protection for the Company. Practical Expedients and Exemptions As a practical expedient, the Company recognizes the incremental costs of obtaining contracts, such as sales commissions, as an expense when incurred since the amortization period of the asset the Company otherwise would have recognized is one year or less. Sales commissions are recorded within selling, general, and administrative expenses in the consolidated statements of operations. |
Cost of Revenue | Cost of Revenue Cost of revenue consists of raw materials costs, personnel costs (salaries, bonuses, benefits, payroll taxes, and stock-based compensation), laboratory supplies and consumables, depreciation and maintenance on equipment, and allocated facilities and information technology (“IT”) costs. |
Research and Development Expenses | Research and Development Expenses The Company charges research and development costs to expenses as incurred, including lab and automation development costs. The expenses primarily consist of personnel costs (salaries, bonuses, stock-based compensation, payroll taxes, and benefits); laboratory supplies and consumables; costs of processing samples for research, product development, collaborations, and studies; depreciation and maintenance on equipment; and allocated facilities and IT costs. |
Stock-Based Compensation | Stock-Based Compensation For options granted to employees, non-employees, and directors, stock-based compensation is measured at grant date based on the fair value of the award. The Company determines the grant-date fair value of options using the Black-Scholes option-pricing model, except for certain performance-based awards for which an alternative valuation method may be used. The Company determines the fair value of restricted stock unit awards using the closing market price of the Company’s common stock on the date of grant. The grant-date fair value of awards is amortized over the employees’ requisite service period on a straight-line basis, or the non-employees’ vesting period as the goods are received or services rendered. Forfeitures are accounted for as they occur. Additionally, the Company’s 2019 Employee Stock Purchase Plan (the “ESPP”) is deemed to be a compensatory plan and therefore is included in stock-based compensation expense. Inputs used in Black-Scholes option-pricing models to measure fair value of options are summarized as follows: Expected Term. The expected term is calculated using the simplified method, which is available if there is insufficient historical data about exercise patterns and post-vesting employment termination behavior. The simplified method is based on the vesting period and the contractual term for each grant, or for each vesting tranche for awards with graded vesting. The midpoint of the vesting date and the contractual expiration date is used as the expected term under this method. For awards with multiple vesting tranches, the assumed period for each tranche is computed separately and then averaged together to determine the expected term for the award. Expected Volatility. The Company used an average historical stock price volatility of a peer group of publicly traded companies to be representative of its expected future stock price volatility, as the Company did not have sufficient trading history for its common stock. For purposes of identifying these peer companies, the Company considered the industry, stage of development, size, and financial leverage of potential comparable companies. For each grant, the Company measured historical volatility over a period equivalent to the expected term. Risk-Free Interest Rate. The risk-free interest rate is based on the implied yield currently available on U.S. Treasury zero-coupon issues with remaining terms equivalent to the expected term of a stock award. Expected Dividend Rate. The Company has not paid and does not anticipate paying any dividends in the near future. Accordingly, the Company has estimated the dividend yield to be zero. |
Foreign Currency Translation | Foreign Currency Translation The Company considers the functional currencies of its foreign subsidiaries to be the local currency. Assets and liabilities recorded in foreign currencies are translated at the exchange rate as of the balance sheet date, and costs and expenses are translated at average exchange rates in effect during the period. Equity transactions are translated using historical exchange rates. The effects of foreign currency translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) in the consolidated balance sheets. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss includes all changes in equity (net assets) during the period from nonowner sources. The Company’s comprehensive loss consists of its net loss, its cumulative translation adjustments, and its unrealized gains or losses on available-for-sale debt securities. |
Income Taxes | Income Taxes The Company uses the asset and liability method under ASC Topic 740, Income Taxes, in accounting for income taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax expenses or benefits are the result of changes in the deferred tax assets and liabilities. Valuation allowances are established when necessary to reduce deferred tax assets where it is more likely than not that the deferred tax assets will not be realized. ASC Topic 740 clarifies the accounting for uncertainty in income taxes recognized in the financial statements. ASC Topic 740 provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon audit, including resolutions of any related appeals or litigation processes, based on the technical merits of the position. ASC Topic 740 also provides guidance on measurement, derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the consolidated statements of operations. Accrued interest and penalties are included within the related liability line in the consolidated balance sheets. The Company considers undistributed earnings of its foreign subsidiaries to be indefinitely reinvested and, accordingly, no U.S. income taxes have been provided thereon. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents consist of highly liquid investments with maturities at the time of purchase of three months or less. Cash equivalents include bank demand deposits and money market accounts that invest primarily in cash, U.S. Treasury bills, notes, and other obligations issued or guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities, and repurchase agreements secured by such obligations or cash. Cash equivalents also include commercial paper and U.S. Treasury bills, which are marketable debt securities recorded at fair value and accounted for in the same manner as other marketable debt securities described below. |
Short-term Investments | Short-term Investments The Company’s investments in marketable debt securities are classified as available-for-sale and recorded at fair value. Investments with original maturities of greater than three months and remaining maturities of less than one year are classified as short-term investments. Investments with maturities beyond one year may be classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. Short-term investments primarily consist of U.S. agency bonds, commercial paper, corporate bonds, asset-backed securities, U.S. Treasury bills, and non-U.S. Government notes. Unrealized gains and losses are included in accumulated other comprehensive income (loss) in stockholders’ equity. Any discount or premium arising at purchase is accreted or amortized to interest income or expense. Realized gains and losses and declines in fair value, if any, judged to be other than temporary are reported in other income (expense), net. When securities are sold, any associated unrealized gain or loss initially recorded as a separate component of stockholders’ equity is reclassified out of stockholders’ equity on a specific-identification basis and recorded in earnings for the period. The Company periodically evaluates whether declines in fair values of its investments below their book value are other-than-temporary. This evaluation consists of several qualitative and quantitative factors regarding the severity and duration of the unrealized loss as well as the Company’s ability and intent to hold the marketable security until a forecasted recovery occurs. Factors considered include quoted market prices, recent financial results and operating trends, implied values from any recent transactions or offers of investee securities, credit quality of debt instrument issuers, other publicly-available information that may affect the value of the marketable security, duration and severity of the decline in value, and management’s strategy and intentions for holding the marketable security. To date, the Company has not recorded any impairment charges on its marketable securities related to other-than-temporary declines in market value. |
Fair Value Measurements | Fair Value Measurements Financial assets and liabilities are recorded at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. Observable inputs reflect market data obtained from independent sources while unobservable inputs reflect market assumptions made by the reporting entity. The three-level hierarchy for the inputs to valuation techniques used to measure fair value is briefly summarized as follows: Level 1 — Unadjusted quoted prices in active markets that are accessible to the reporting entity at the measurement date for identical assets and liabilities. Level 2 — Inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following: • Quoted prices for similar assets and liabilities in active markets. • Quoted prices for identical or similar assets or liabilities in markets that are not active. • Observable inputs other than quoted prices that are used in the valuation of the assets or liabilities (e.g., interest rate and yield curve quotes at commonly quoted intervals). • Inputs that are derived principally from or are corroborated by observable market data by correlation or other means. Level 3 — Unobservable inputs for the assets or liabilities (i.e., supported by little or no market activity). Level 3 inputs include management’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. |
Accounts Receivable, Net | Accounts Receivable, Net Trade accounts receivable are recorded at the invoiced amount and are noninterest bearing. At each reporting period, management reviews all outstanding customer balances to determine if the facts and circumstances of each customer relationship indicate the need for a reserve. A reserve is recorded when it is probable that a loss has been incurred based on past events and conditions existing at the date of the financial statements, and the loss is reasonably estimated. |
Inventory and Other Deferred Costs | Inventory and Other Deferred Costs Inventory, consisting of supplies used in fulfilling customer contracts, are valued at the lower of cost or net realizable value. Cost is determined using actual costs, on a first-in, first-out basis. Other deferred costs relate to work in process for costs incurred on customer contracts that have not been completed or recognized as revenue. Other deferred costs represent materials used in sequencing services, labor, and overhead allocations. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are recorded at cost, less accumulated depreciation and amortization, and are depreciated on a straight-line basis over the estimated useful lives of the related assets, which is generally three to five years for computer equipment, two years for software, three years for furniture and equipment, and five years for machinery and equipment. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the related asset. Upon retirement or sale, the cost and related accumulated depreciation and amortization are removed from the consolidated balance sheet, and the resulting gain or loss is reflected in the consolidated statements of operations. Maintenance and repairs that are not considered improvements and do not extend the useful lives of the assets are charged to expense as incurred. Construction-in-process assets consist primarily of computer equipment and machinery and equipment that have not yet been placed in service. These assets are stated at cost and are not depreciated. Once the assets are placed into service, assets are reclassified to the appropriate asset class based on their nature and depreciated in accordance with the useful lives above. |
Leases | Leases The Company categorizes leases with contractual terms longer than 12 months as either operating or finance leases. Finance leases are generally those leases that allow the Company to substantially utilize or pay for the entire asset over its estimated life. All other leases are categorized as operating leases. As of December 31, 2022, the Company had no finance leases. Certain lease contracts include obligations to pay for other services, such as maintenance. The Company elected to account for these other services as a component of the lease (i.e., the Company elected the practical expedient not to separate lease and non-lease components). Lease liabilities are recognized at the present value of the fixed lease payments using a discount rate based on the Company’s current borrowing rate at the lease commencement date, adjusted for various factors including level of collateralization and term (the “incremental borrowing rate”), unless the rate implicit in the lease is readily determinable. The current portion of lease liabilities is included in “Accrued and other current liabilities.” Lease assets are recognized based on the initial present value of the fixed lease payments plus any direct costs from executing the leases and any lease prepayments. Lease assets are presented as “Operating lease right-of-use assets” as a long-term asset. Leasehold improvements are capitalized at cost and amortized over the lesser of their expected useful life or the lease term. Costs associated with operating lease assets are recognized on a straight-line basis within operating expenses over the term of the lease. The Company has made an accounting policy election not to recognize right-of-use assets and lease liabilities that arise from leases with a term of 12 months or less. Fixed lease payments are recognized as an expense on a straight-line basis over the lease term. Variable lease costs are amounts owed by us to a lessor that are not fixed, such as reimbursement for common area maintenance, operating expenses, utilities, or other costs that are subject to fluctuation from period to period. The Company has also elected to include expenses related to leases with a term of one month or less in the short-term lease cost disclosure. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements New Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The accounting update also made minor changes to the impairment model for available-for-sale debt securities. The Company will adopt the new guidance as of the beginning of the first quarter of 2023 by means of a cumulative-effect adjustment to opening retained earnings and does not expect adoption to have a material impact on the consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Percentage of Revenues and Accounts Receivables from Customers | For each significant customer, revenue as a percentage of total revenue and accounts receivable as a percentage of total accounts receivable are as follows: Revenue Accounts Receivable Year Ended December 31, December 31, 2022 2021 2020 2022 2021 Natera, Inc. 41 % 10 % * 43 % 39 % VA MVP 13 % 53 % 71 % * * Merck & Co., Inc. 11 % * * * 15 % AbbVie Inc. * * * * 18 % GSK plc * * * 12 % * Pfizer Inc. * * * 10 % * * Less than 10 % of revenue or accounts receivable |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disaggregation Of Revenue [Abstract] | |
Schedule of Revenue Disaggregated by Customer Type | The following table presents the Company’s revenue disaggregated by customer type (in thousands): Year Ended December 31, 2022 2021 2020 Pharma tests and services $ 29,552 $ 30,282 $ 21,396 Enterprise sales 26,641 8,774 479 Population sequencing 8,443 45,671 56,154 Other 411 767 619 Total revenue $ 65,047 $ 85,494 $ 78,648 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Inventory and Other Deferred Costs | Inventory and other deferred costs consist of the following (in thousands): December 31, 2022 2021 Raw materials $ 6,384 $ 4,081 Other deferred costs 2,207 1,529 Total inventory and other deferred costs $ 8,591 $ 5,610 |
Schedule of Property and Equipment, Net | Property and equipment, net consists of the following (in thousands): December 31, 2022 2021 Machinery and equipment $ 21,537 $ 15,877 Computer equipment 17,803 13,286 Computer software costs 3,010 2,213 Furniture and fixtures 2,152 517 Construction in progress 3,989 5,393 Leasehold improvements 40,370 1,357 Total 88,861 38,643 Less: accumulated depreciation and amortization ( 26,926 ) ( 18,993 ) Property and equipment, net $ 61,935 $ 19,650 |
Schedule of Accrued and Other Current Liabilities | Accrued and other current liabilities consist of the following (in thousands): December 31, 2022 2021 Accrued compensation $ 9,008 $ 10,673 Operating lease liabilities 5,391 3,728 Loans—current portion (Note 6) 2,218 1,806 Accrued liabilities 1,700 883 Employee ESPP contributions 543 517 Customer deposits 30 382 Accrued taxes 123 121 Total accrued and other current liabilities $ 19,013 $ 18,110 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis and Level of Inputs used in such Measurements | The following tables show the Company’s financial assets and liabilities measured at fair value on a recurring basis and the level of inputs used in such measurements as of December 31, 2022 and 2021 (in thousands): December 31, 2022 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Fair Value Level Assets Cash and cash equivalents: Cash $ 5,615 $ — $ — $ 5,615 Money market funds 31,401 — — 31,401 Level 1 Commercial paper 47,135 — ( 15 ) 47,120 Level 2 U.S. government securities 4,991 1 — 4,992 Level 2 Total cash and cash equivalents 89,142 1 ( 15 ) 89,128 Short-term investments: Commercial paper 13,097 — ( 51 ) 13,046 Level 2 U.S. agency securities 9,445 — ( 105 ) 9,340 Level 2 U.S. government securities 56,658 1 ( 515 ) 56,144 Level 2 Total short-term investments 79,200 1 ( 671 ) 78,530 Total assets measured at fair value $ 168,342 $ 2 $ ( 686 ) $ 167,658 December 31, 2021 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Fair Value Level Assets Cash and cash equivalents: Cash $ 6,094 $ — $ — $ 6,094 Money market funds 49,488 — — 49,488 Level 1 Commercial paper 50,005 — ( 2 ) 50,003 Level 2 Total cash and cash equivalents 105,587 — ( 2 ) 105,585 Short-term investments: Commercial paper 18,068 — ( 2 ) 18,066 Level 2 U.S. government securities 50,040 — ( 15 ) 50,025 Level 2 Corporate debt securities 18,059 — ( 7 ) 18,052 Level 2 U.S. agency securities 19,738 — ( 35 ) 19,703 Level 2 Asset-backed securities 75,787 — ( 154 ) 75,633 Level 2 Total short-term investments 181,692 — ( 213 ) 181,479 Total assets measured at fair value $ 287,279 $ — $ ( 215 ) $ 287,064 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Amounts Outstanding | Amounts outstanding under the payment agreements are as follows (in thousands): December 31, 2022 2021 Principal $ 2,730 $ 3,714 Less: unamortized discount ( 134 ) ( 220 ) Total carrying amount 2,596 3,494 Less: current portion (included in accrued and other current liabilities) ( 2,218 ) ( 1,806 ) Long-term portion (included in other long-term liabilities) $ 378 $ 1,688 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Components of Lease Cost | Components of lease cost were as follows (in thousands): Year Ended December 31, 2022 2021 2020 Lease cost Operating lease cost $ 8,530 $ 5,009 $ 2,295 Short-term lease cost 122 364 227 Variable lease cost 1,411 1,152 748 Total lease cost $ 10,063 $ 6,525 $ 3,270 |
Schedule of Future Minimum Lease Payments | As of December 31, 2022, the Company’s operating leases had a weighted-average remaining lease term of 11.1 years and a weighted-average discount rate of 10.5 %. The Company’s discount rates are based on estimates of its incremental borrowing rate, as the discount rates implicit in the Company’s lease cannot be readily determined. Future lease payments under operating leases as of December 31, 2022 were as follows (in thousands): Amount 2023 $ 5,711 2024 7,895 2025 7,808 2026 7,168 2027 7,189 2028 and thereafter 48,013 Total future minimum lease payments 83,784 Less: imputed interest ( 37,352 ) Present value of future minimum lease payments 46,432 Less: current portion of operating lease liability (included in accrued and other current liabilities) ( 5,391 ) Long-term operating lease liabilities $ 41,041 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Shares of Common Stock Available for Issuance | Shares of common stock available for issuance under the Company’s equity incentive plans at December 31, 2022 were as follows: December 31, 2022 Outstanding stock awards 8,493,614 Reserved for future award grants 1,958,949 Reserved for future ESPP 615,879 Total common stock reserved for stock awards 11,068,442 |
Summary of Stock Option Activity | A summary of the Company’s stock option activity (excluding performance-based stock option activity summarized further below) under the 2011 Plan, 2019 Plan, and Inducement Plan for the years ended December 31, 2022, 2021, and 2020 is as follows: Outstanding Options (in thousands, except share and per share data) Number of Weighted- Weighted- Aggregate Balance—December 31, 2019 4,731,435 $ 4.94 6.60 $ 29,730 Options granted 1,357,741 12.05 Options exercised ( 908,691 ) 3.07 Options forfeited or expired ( 232,179 ) 7.87 Balance—December 31, 2020 4,948,306 $ 7.10 6.71 $ 146,044 Options granted 1,026,276 21.26 Options exercised ( 862,056 ) 2.43 Options forfeited or expired ( 110,107 ) 13.88 Balance—December 31, 2021 5,002,419 $ 10.66 6.89 $ 28,308 Options granted 1,429,295 4.80 Options exercised ( 488,187 ) 2.07 Options forfeited or expired ( 492,395 ) 10.57 Balance—December 31, 2022 5,451,132 $ 9.90 5.31 $ 7 Options vested and exercisable as of December 31, 2022 3,740,205 $ 9.03 3.76 $ 7 |
Summary of Weighted-average Assumptions Used in Determination of Fair Value of Stock Options | The fair value of stock options is recognized on a straight-line basis over the requisite service periods of the awards. The fair value of stock options was estimated using the following range of assumptions: Year Ended December 31, 2022 2021 2020 Expected term (in years) 5.50 - 6.08 5.50 - 6.27 5.50 - 6.40 Volatility 68.37 - 77.68 % 67.97 - 69.90 % 61.74 - 68.18 % Risk-free interest rate 1.62 - 4.23 % 0.62 - 1.39 % 0.36 - 1.66 % Dividend yield – % – % – % |
Summary of Restricted Stock Units Activity | A summary of the Company’s RSU activity under the 2019 Plan and Inducement Plan for the years ended December 31, 2022, 2021 and 2020 is as follows: Unvested Restricted Stock Units (in thousands, except share and per share data) Number of Weighted- Aggregate Balance—December 31, 2019 120,000 $ 8.86 $ 1,308 RSUs granted 648,000 9.93 RSUs vested ( 130,945 ) 7.09 2,991 RSUs forfeited ( 17,837 ) 6.83 Balance—December 31, 2020 619,218 $ 10.41 $ 22,670 RSUs granted 1,387,656 18.05 RSUs vested ( 266,119 ) 10.93 5,521 RSUs forfeited ( 61,059 ) 18.45 Balance—December 31, 2021 1,679,696 $ 16.35 $ 23,969 RSUs granted 2,071,201 4.86 RSUs vested ( 897,871 ) 11.74 3,189 RSUs forfeited ( 231,544 ) 10.94 Balance—December 31, 2022 2,621,482 $ 9.33 $ 5,191 |
Stock Based Compensation Expense by Award Type and Function | The following is a summary of stock-based compensation expense by function (in thousands): Year Ended December 31, 2022 2021 2020 Cost of revenue $ 1,922 $ 1,414 $ 854 Research and development 5,256 4,064 1,773 Selling, general and administrative 12,255 8,900 5,611 Total stock-based compensation expense $ 19,433 $ 14,378 $ 8,238 The following is a summary of stock-based compensation expense by award type (in thousands): Year Ended December 31, 2022 2021 2020 Stock options $ 8,560 $ 8,585 $ 4,729 Performance-based stock options — — 1,392 RSUs 9,990 4,765 1,401 ESPP 883 1,028 716 Total stock-based compensation expense $ 19,433 $ 14,378 $ 8,238 |
2019 Employee Stock Purchase Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Weighted-average Assumptions Used to Calculate Stock-Based Compensation For Each Stock Purchase Right Granted Under ESPP | : Year Ended December 31, 2022 2021 2020 Expected term (in years) 0.49 - 0.5 0.49 0.49 - 0.5 Volatility 82.35 - 112.07 % 55.92 - 74.88 % 65.15 - 102.10 % Risk-free interest rate 1.49 - 4.58 % 0.04 - 0.06 % 0.11 - 0.12 % Dividend yield –% –% –% Fair value $ 1.26 - $ 2.23 $ 6.30 - $ 8.21 $ 4.29 - $ 8.12 |
Performance-Based Stock Option | 2019 Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Stock Option Activity | A summary of the Company’s performance-based stock option activity under the 2019 Plan for the years ended December 31, 2022, 2021 and 2020 is as follows: Outstanding Performance-Based Options (in thousands, except share and per share data) Number of Weighted- Weighted- Aggregate Balance—December 31, 2019 — $ — — $ — Options granted 421,000 5.10 Options exercised — Options cancelled — Balance—December 31, 2020 421,000 $ 5.10 9.21 $ 13,266 No activities — Balance—December 31, 2021 421,000 $ 5.10 8.21 $ 3,861 No activities — Balance—December 31, 2022 421,000 $ 5.10 1.00 $ — Options vested and exercisable as of December 31, 2022 421,000 $ 5.10 1.00 $ — |
Summary of Weighted-average Assumptions Used in Determination of Fair Value of Stock Options | The Company estimated the fair value of the PSO using a Monte Carlo Model and the following assumptions and estimates: 2020 Performance period (in years) 10.00 Derived service period (in years) 4.55 Volatility 63.60 % Risk-free interest rate 1.02 % Dividend yield –% Estimated fair value (per share) $ 3.31 |
Basic and Diluted Net Loss Pe_2
Basic and Diluted Net Loss Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss per Share | The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share amounts): Year Ended December 31, 2022 2021 2020 Net loss $ ( 113,315 ) $ ( 65,226 ) $ ( 41,280 ) Weighted-average common shares outstanding—basic and diluted 45,704,805 43,886,730 34,374,903 Net loss per common share—basic and diluted $ ( 2.48 ) $ ( 1.49 ) $ ( 1.20 ) |
Schedule of Potentially Dilutive Shares Excluded from Computation of Diluted Net Loss per Common Share | The following table sets forth the potentially dilutive shares excluded from the computation of diluted net loss per common share because their effect was anti-dilutive: Year Ended December 31, 2022 2021 2020 Options to purchase common stock 5,872,132 5,423,419 5,369,306 Unvested RSUs 2,621,482 1,679,696 619,218 ESPP 627,740 87,367 58,802 Total 9,121,354 7,190,482 6,047,326 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Loss Before Income Taxes | For financial reporting purposes, loss before income taxes includes the following components (in thousands): Year Ended December 31, 2022 2021 2020 Domestic $ ( 113,558 ) $ ( 65,415 ) $ ( 41,404 ) Foreign 283 203 181 Loss before income taxes $ ( 113,275 ) $ ( 65,212 ) $ ( 41,223 ) |
Schedule of Provision for Income Taxes | The provision for income taxes consists of the following (in thousands): Year Ended December 31, 2022 2021 2020 Current: Federal $ — $ — $ — State 5 — 26 Foreign 66 43 31 Total current 71 43 57 Deferred: Foreign ( 31 ) ( 29 ) — Total deferred ( 31 ) ( 29 ) — Provision for income taxes $ 40 $ 14 $ 57 |
Summary of Income Tax Provision Related to Continuing Operations Statutory Income Tax Rate | Income tax provision related to continuing operations differ from the amounts computed by applying the statutory income tax rate of 21 % to pretax loss in 2022, 2021, and 2020 as follows: Year Ended December 31, 2022 2021 2020 Expected tax (benefit) at federal statutory rate ( 21 %) ( 21 %) ( 21 %) Effect of: State taxes ( 6 %) ( 9 %) ( 10 %) Change in valuation allowance 28 % 36 % 38 % Stock-based compensation 1 % ( 3 %) ( 4 %) Research and development credit ( 2 %) ( 3 %) ( 3 %) Other –% –% –% Effective tax rate – % – % – % |
Components of Deferred Tax Assets for Federal and State Income Taxes | Significant components of the Company’s deferred tax assets for federal and state income taxes are as follows (in thousands): December 31, 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 72,408 $ 61,219 Research and development credits 16,824 12,127 Capitalized research and development 11,972 — Deferred revenue 38 164 Accruals and reserves 1,914 2,846 Stock-based compensation 5,197 4,435 Operating lease liabilities 13,455 16,406 Other intangibles 267 321 Other 236 115 Total gross deferred tax assets 122,311 97,633 Less: valuation allowance ( 114,483 ) ( 81,628 ) Total deferred tax assets 7,828 16,005 Deferred tax liabilities: Property and equipment ( 108 ) ( 356 ) Operating lease right-of-use assets ( 7,659 ) ( 15,620 ) Total deferred tax liabilities ( 7,767 ) ( 15,976 ) Net deferred tax assets $ 61 $ 29 |
Summary of Unrecognized Tax Benefits | The Company has the following activity relating to unrecognized tax benefits (in thousands): December 31, 2022 2021 Beginning balance $ 3,066 $ 2,148 Gross increase—tax position in current period 1,174 918 Ending balance $ 4,240 $ 3,066 |
Company and Nature of Business
Company and Nature of Business - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 Segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021 | Jan. 31, 2021 | Aug. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Allowance for doubtful accounts | $ 0.1 | $ 0.1 | $ 0.1 | |||
Dividend yield | 0% | 0% | 0% | |||
Software | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Property and equipment estimated useful lives | 2 years | |||||
Furniture and Equipment | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Property and equipment estimated useful lives | 3 years | |||||
Machinery and Equipment | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Property and equipment estimated useful lives | 5 years | |||||
Minimum | Computer Equipment | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Property and equipment estimated useful lives | 3 years | |||||
Minimum | ASU 2014-09 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Standard payment terms | 90 days | |||||
Maximum | Computer Equipment | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Property and equipment estimated useful lives | 5 years | |||||
Maximum | ASU 2014-09 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Period between payment by customer and transfer of promised services | 1 year | |||||
Recognition period of incremental costs | 1 year | |||||
At Market Sales Agreement | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Proceeds from Issuance or Sale of Equity | $ 100 | |||||
Commission percentage of sale proceeds from common stock | 3% | |||||
Follow - On Offering | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of shares issued | 6,578,947 | |||||
Shares issued price per share | $ 19 | |||||
Proceeds from Issuance or Sale of Equity | $ 117.5 | |||||
Offering costs incurred | $ 0.4 | |||||
Follow - On Offering | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of shares issued | 3,950,000 | |||||
Shares issued price per share | $ 38 | |||||
Proceeds from Issuance or Sale of Equity | $ 141.1 | |||||
Offering costs incurred | $ 0.3 | |||||
Over-Allotment Option | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of shares issued | 592,500 | |||||
Proceeds from Issuance or Sale of Equity | $ 21.2 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Percentage of Revenues and Accounts Receivables from Customers (Details) - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | VA MVP | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk percentage | 13% | 53% | 71% |
Revenue | Natera Inc | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk percentage | 41% | 10% | |
Revenue | Merck & Co., Inc. | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk percentage | 11% | ||
Accounts Receivable | Natera Inc | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk percentage | 43% | 39% | |
Accounts Receivable | Merck & Co., Inc. | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk percentage | 15% | ||
Accounts Receivable | Pfizer Inc. | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk percentage | 10% | ||
Accounts Receivable | AbbVie Inc | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk percentage | 18% | ||
Accounts Receivable | GSK plc | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk percentage | 12% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Percentage of Revenues and Accounts Receivables from Customers (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Receivable | Minimum | Customer Concentration Risk | |
Summary Of Significant Accounting Policies [Line Items] | |
Concentration risk percentage | 10% |
Revenue - Schedule of Revenue D
Revenue - Schedule of Revenue Disaggregated by Customer Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | |||
Revenue | $ 65,047 | $ 85,494 | $ 78,648 |
Pharma Tests and Services | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 29,552 | 30,282 | 21,396 |
Enterprise Sales | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 26,641 | 8,774 | 479 |
Population Sequencing | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 8,443 | 45,671 | 56,154 |
Other | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | $ 411 | $ 767 | $ 619 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | |||
Contract liabilities | $ 1.3 | $ 4 | |
Contract liability, revenue recognized | $ 3.5 | $ 19.1 | $ 33.8 |
Customer Concentration Risk | Revenues | Maximum | Significant Customers | Outside of United States | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 9% | 8% | 5% |
Balance Sheet Details - Schedul
Balance Sheet Details - Schedule of Inventory and Other Deferred Costs (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory And Other Deferred Costs [Abstract] | ||
Raw materials | $ 6,384 | $ 4,081 |
Other deferred costs | 2,207 | 1,529 |
Total inventory and other deferred costs | $ 8,591 | $ 5,610 |
Balance Sheet Details - Sched_2
Balance Sheet Details - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Total | $ 88,861 | $ 38,643 |
Less: accumulated depreciation and amortization | (26,926) | (18,993) |
Property and equipment, net | 61,935 | 19,650 |
Machinery and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total | 21,537 | 15,877 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total | 17,803 | 13,286 |
Computer Software Costs | ||
Property Plant And Equipment [Line Items] | ||
Total | 3,010 | 2,213 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total | 2,152 | 517 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total | 40,370 | 1,357 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Total | $ 3,989 | $ 5,393 |
Balance Sheet Details - Additio
Balance Sheet Details - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Depreciation and amortization expense | $ 8,432 | $ 6,014 | $ 5,758 |
Restricted cash, included in other long-term assets | $ 1,790 | $ 1,790 |
Balance Sheet Details - Sched_3
Balance Sheet Details - Schedule of Accrued and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Payables And Accruals [Abstract] | ||
Accrued compensation | $ 9,008 | $ 10,673 |
Operating lease liabilities | $ 5,391 | $ 3,728 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accounts payable | Accounts payable |
Loans—current portion (Note 6) | $ 2,218 | $ 1,806 |
Accrued liabilities | 1,700 | 883 |
Employee ESPP contributions | 543 | 517 |
Customer deposits | 30 | 382 |
Accrued taxes | 123 | 121 |
Total accrued and other current liabilities | $ 19,013 | $ 18,110 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis and Level of Inputs used in such Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | |||
Cash and cash equivalents, Adjusted Cost | $ 89,128 | $ 105,585 | $ 68,525 |
Fair Value Measurements Recurring | |||
Assets | |||
Assets, Adjusted Cost | 168,342 | 287,279 | |
Assets, Unrealized Gains | 2 | ||
Assets, Unrealized Losses | (686) | (215) | |
Assets, Fair Value | 167,658 | 287,064 | |
Cash and cash equivalents, Adjusted Cost | 89,142 | 105,587 | |
Cash and cash equivalents, Unrealized Gains | 1 | ||
Cash and cash equivalents, Unrealized Losses | (15) | (2) | |
Cash and cash equivalents, Fair Value | 89,128 | 105,585 | |
Fair Value Measurements Recurring | Short-term Investments | |||
Assets | |||
Investments, Adjusted Cost | 79,200 | 181,692 | |
Investments, Unrealized Gains | 1 | ||
Investments, Unrealized Losses | (671) | (213) | |
Investments, Fair Value | 78,530 | 181,479 | |
Fair Value Measurements Recurring | Commercial Paper | Level 2 | |||
Assets | |||
Cash and cash equivalents, Adjusted Cost | 47,135 | 50,005 | |
Cash and cash equivalents, Unrealized Losses | (15) | (2) | |
Cash and cash equivalents, Fair Value | 47,120 | 50,003 | |
Fair Value Measurements Recurring | Commercial Paper | Level 2 | Short-term Investments | |||
Assets | |||
Investments, Adjusted Cost | 13,097 | 18,068 | |
Investments, Unrealized Losses | (51) | (2) | |
Investments, Fair Value | 13,046 | 18,066 | |
Fair Value Measurements Recurring | U.S. Government Securities | Level 2 | |||
Assets | |||
Investments, Adjusted Cost | 4,991 | ||
Investments, Unrealized Gains | 1 | ||
Investments, Fair Value | 4,992 | ||
Fair Value Measurements Recurring | U.S. Government Securities | Level 2 | Short-term Investments | |||
Assets | |||
Investments, Adjusted Cost | 56,658 | 50,040 | |
Investments, Unrealized Gains | 1 | ||
Investments, Unrealized Losses | (515) | (15) | |
Investments, Fair Value | 56,144 | 50,025 | |
Fair Value Measurements Recurring | Corporate Debt Securities | Level 2 | Short-term Investments | |||
Assets | |||
Investments, Adjusted Cost | 18,059 | ||
Investments, Unrealized Losses | (7) | ||
Investments, Fair Value | 18,052 | ||
Fair Value Measurements Recurring | U.S. Agency Securities | Level 2 | Short-term Investments | |||
Assets | |||
Investments, Adjusted Cost | 9,445 | 19,738 | |
Investments, Unrealized Losses | (105) | (35) | |
Investments, Fair Value | 9,340 | 19,703 | |
Fair Value Measurements Recurring | Asset-backed Securities | Level 2 | Short-term Investments | |||
Assets | |||
Investments, Adjusted Cost | 75,787 | ||
Investments, Unrealized Losses | (154) | ||
Investments, Fair Value | 75,633 | ||
Fair Value Measurements Recurring | Cash | |||
Assets | |||
Cash and cash equivalents, Adjusted Cost | 5,615 | 6,094 | |
Cash and cash equivalents, Fair Value | 5,615 | 6,094 | |
Fair Value Measurements Recurring | Money Market Funds | Level 1 | |||
Assets | |||
Cash and cash equivalents, Adjusted Cost | 31,401 | 49,488 | |
Cash and cash equivalents, Fair Value | $ 31,401 | $ 49,488 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | Dec. 31, 2022 USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Unrealized loss position for 12 months or greater on security | $ 0 |
Loans - Additional Information
Loans - Additional Information (Details) - Payment Agreement with Financing Entity $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2022 USD ($) Payment | Apr. 30, 2021 USD ($) Payment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Debt Disclosure [Line Items] | ||||
Principal amount | $ 2,730 | $ 3,714 | ||
Initial present value of payment agreements | 6,400 | |||
Interest expense | $ 200 | $ 200 | ||
Software | ||||
Debt Disclosure [Line Items] | ||||
Principal amount | $ 1,300 | $ 2,400 | ||
Number of equal payments | Payment | 3 | 3 | ||
Noninterest bearing rate | 0% | |||
Imputed interest rate | 9% | 7% | ||
Computer Equipment | ||||
Debt Disclosure [Line Items] | ||||
Principal amount | $ 3,100 | |||
Number of equal payments | Payment | 3 | |||
Option One | Software | ||||
Debt Disclosure [Line Items] | ||||
Payment of debt | $ 800 | |||
Option Two | Software | ||||
Debt Disclosure [Line Items] | ||||
Payment of debt | 800 | |||
May 2023 | Software | ||||
Debt Disclosure [Line Items] | ||||
Payment of debt | 800 | |||
July 2021 | Computer Equipment | ||||
Debt Disclosure [Line Items] | ||||
Payment of debt | 1,000 | |||
June 2022 | Computer Equipment | ||||
Debt Disclosure [Line Items] | ||||
Payment of debt | 1,000 | |||
June 2023 | Computer Equipment | ||||
Debt Disclosure [Line Items] | ||||
Payment of debt | $ 1,000 | |||
September 2022 | Software | ||||
Debt Disclosure [Line Items] | ||||
Payment of debt | $ 400 | |||
September 2023 | Software | ||||
Debt Disclosure [Line Items] | ||||
Payment of debt | 400 | |||
September 2024 | Software | ||||
Debt Disclosure [Line Items] | ||||
Payment of debt | $ 400 |
Loans - Schedule of Amounts Out
Loans - Schedule of Amounts Outstanding (Details) - Payment Agreement with Financing Entity - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Line Items] | ||
Principal | $ 2,730 | $ 3,714 |
Less: unamortized discount | (134) | (220) |
Total carrying amount | 2,596 | 3,494 |
Less: current portion (included in accrued and other current liabilities) | (2,218) | (1,806) |
Long-term portion (included in other long-term liabilities) | $ 378 | $ 1,688 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | 18 Months Ended | ||||
Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) ft² | Dec. 31, 2021 USD ($) ft² | Dec. 31, 2020 USD ($) | Dec. 31, 2019 | Dec. 31, 2022 USD ($) ft² | Dec. 31, 2015 ft² | |
Lessee Lease Description [Line Items] | |||||||
Area of office space | ft² | 14,710 | 31,280 | |||||
Lease expiration month and year | 2022-12 | 2027-11 | |||||
Operating lease, existence of option to extend | false | true | |||||
Operating lease, option to extend | an option to extend the term for a period of three years | not extended | |||||
Operating lease option to extend term | 3 years | ||||||
Operating leases, weighted-average remaining lease term | 11 years 1 month 6 days | 11 years 1 month 6 days | |||||
Operating leases, weighted-average discount rate | 10.50% | 10.50% | |||||
Cash paid for operating lease liabilities | $ 4.4 | $ 3.3 | $ 1.7 | ||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 3.1 | $ 46.5 | $ 9.8 | ||||
Co-located Data Center Space | |||||||
Lessee Lease Description [Line Items] | |||||||
Lease expiration month and year | 2025-09 | ||||||
Operating lease, existence of option to extend | true | ||||||
Operating lease, option to extend | option to extend the term for a period of three years | ||||||
Operating lease option to extend term | 3 years | 3 years | |||||
Noncancelable operating lease term | 3 years | ||||||
Future Corporate Headquarters and Expanded Laboratory Facility | |||||||
Lessee Lease Description [Line Items] | |||||||
Area of office space | ft² | 100,000 | ||||||
Lease expiration month and year | 2036-03 | ||||||
Operating lease, existence of option to extend | true | ||||||
Operating lease, option to extend | two options to extend the term for a period of five-years | ||||||
Operating lease option to extend term | 5 years | ||||||
Lease term | 13 years 6 months | ||||||
Operating lease landlord agreed to contribution amount, approximate | $ 15.5 | ||||||
Operating lease, contribution amount received from landlord | $ 13.2 | ||||||
Decrease in right-of-use assets | $ (12.9) | ||||||
China Operations | |||||||
Lessee Lease Description [Line Items] | |||||||
Area of office space | ft² | 5,100 | 5,100 | |||||
Lease expiration month and year | 2024-06 |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lease cost | |||
Operating lease cost | $ 8,530 | $ 5,009 | $ 2,295 |
Short-term lease cost | 122 | 364 | 227 |
Variable lease cost | 1,411 | 1,152 | 748 |
Total lease cost | $ 10,063 | $ 6,525 | $ 3,270 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 5,711 | |
2024 | 7,189 | |
2025 | 7,895 | |
2026 | 7,808 | |
2027 | 7,168 | |
2028 and thereafter | 48,013 | |
Total future minimum lease payments | 83,784 | |
Less: imputed interest | (37,352) | |
Present value of future minimum lease payments | 46,432 | |
Less: current portion of operating lease liability (included in accrued and other current liabilities) | (5,391) | $ (3,728) |
Long-term operating lease liabilities | $ 41,041 | $ 52,797 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Vesting rate at the end of one year | 25% | ||
Vesting rights description | Options granted to new hires generally vest over a four-year period, with 25% vesting at the end of one year and the remaining vesting monthly thereafter. Options granted as merit awards generally vest monthly over a three- or four-year period | ||
Closing price of common stock | $ 1.98 | ||
Weighted-average grant date fair value of options granted | $ 3.21 | $ 13.14 | $ 7.17 |
Unrecognized stock-based compensation of unvested options | $ 10,300,000 | ||
Unrecognized stock-based compensation of unvested options, recognized over weighted-average period | 2 years 4 months 24 days | ||
Options Granted as Merit Awards | Tranche One | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Options Granted as Merit Awards | Tranche Two | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Closing price of common stock | $ 1.98 | ||
Unrecognized stock-based compensation of unvested options, recognized over weighted-average period | 2 years 7 months 6 days | ||
Unrecognized stock-based compensation cost of unvested RSUs | $ 21,900,000 | ||
Maximum | Restricted Stock Units | Tranche Two | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Minimum | Restricted Stock Units | Tranche Two | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
2011 Plan | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options granted in years | 10 years | ||
2019 Plan | Performance-Based Stock Option | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options granted in years | 10 years | ||
Unrecognized stock-based compensation of unvested options | $ 0 | ||
Performance-based Options granted | 421,000 | 421,000 | 421,000 |
Share based compensation arrangement by share based payment equal to or greater than average market capital | $ 1,000,000,000 | ||
Average market capitalization threshold satisfaction period | 30 days | ||
Share based compensation arrangement by share based payment award description | The shares subject to the PSO would vest in full if the Company’s average market capitalization is equal to or greater than $1 billion over a 30 calendar day period. Upon a change in control, the vesting of the shares subject to the PSO would accelerate on a pro rata basis based on the price per share in such change in control transaction multiplied by the price per share at such time divided by $1 billion, with up to 100% of the shares eligible for such accelerated vesting. | ||
2019 Plan | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options granted in years | 10 years | ||
2019 Plan | Maximum | Performance-Based Stock Option | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting rate at the end of one year | 100% | ||
2019 Plan | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage of exercise price options granted | 100% | ||
2019 Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage of purchase price of common stock | 85% | ||
Common stock shares purchased | 416,514 | 128,289 | 164,164 |
2019 Employee Stock Purchase Plan | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage of earnings for purchase of common stock at discounted price | 15% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Shares of Common Stock Available for Issuance (Details) - ESPP | Dec. 31, 2022 shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding stock options and awards (in shares) | 8,493,614 |
Reserved for future award grants | 1,958,949 |
Reserved for future ESPP (in shares) | 615,879 |
Total common stock reserved for stock awards | 11,068,442 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
2011 Plan, 2019 Plan and Inducement Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Outstanding Options, Number of Shares, Beginning Balance | 5,002,419 | 4,948,306 | 4,731,435 | |
Outstanding Options, Number of Shares, granted | 1,429,295 | 1,026,276 | 1,357,741 | |
Outstanding Options, Number of Shares, exercised | (488,187) | (862,056) | (908,691) | |
Outstanding Options, Number of Shares, forfeited or expired | (492,395) | (110,107) | (232,179) | |
Outstanding Options, Number of Shares, Ending Balance | 5,451,132 | 5,002,419 | 4,948,306 | 4,731,435 |
Options vested and exercisable, Number of Shares | 3,740,205 | |||
Outstanding Options, Weighted-Average Exercise Price, Beginning Balance | $ 10.66 | $ 7.10 | $ 4.94 | |
Outstanding Options, Weighted-Average Exercise Price, granted | 4.80 | 21.26 | 12.05 | |
Outstanding Options, Weighted-Average Exercise Price, exercised | 2.07 | 2.43 | 3.07 | |
Outstanding Options, Weighted-Average Exercise Price, forfeited or expired | 10.57 | 13.88 | 7.87 | |
Outstanding Options, Weighted-Average Exercise Price, Ending Balance | 9.90 | $ 10.66 | $ 7.10 | $ 4.94 |
Options vested and exercisable, Weighted-Average Exercise Price | $ 9.03 | |||
Outstanding Options, Weighted-Average Remaining Contractual Term (in years) | 5 years 3 months 21 days | 6 years 10 months 20 days | 6 years 8 months 15 days | 6 years 7 months 6 days |
Options vested and exercisable, Weighted-Average Remaining Contractual Term (in years) | 3 years 9 months 3 days | |||
Outstanding Options, Aggregate Intrinsic Value | $ 7 | $ 28,308 | $ 146,044 | $ 29,730 |
Options vested and exercisable, Aggregate Intrinsic Value | $ 7 | |||
2019 Plan | Performance-Based Stock Option | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Outstanding Options, Number of Shares, Beginning Balance | 421,000 | 421,000 | ||
Outstanding Options, Number of Shares, granted | 421,000 | |||
Outstanding Options, Number of Shares, Ending Balance | 421,000 | 421,000 | 421,000 | |
Options vested and exercisable, Number of Shares | 421,000 | |||
Outstanding Options, Weighted-Average Exercise Price, Beginning Balance | $ 5.10 | $ 5.10 | ||
Outstanding Options, Weighted-Average Exercise Price, granted | $ 5.10 | |||
Outstanding Options, Weighted-Average Exercise Price, Ending Balance | 5.10 | $ 5.10 | $ 5.10 | |
Options vested and exercisable, Weighted-Average Exercise Price | $ 5.10 | |||
Outstanding Options, Weighted-Average Remaining Contractual Term (in years) | 1 year | 8 years 2 months 15 days | 9 years 2 months 15 days | |
Options vested and exercisable, Weighted-Average Remaining Contractual Term (in years) | 1 year | |||
Outstanding Options, Aggregate Intrinsic Value | $ 3,861 | $ 13,266 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Weighted-average Assumptions Used in Determination of Fair Value of Service-Based Stock Options (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Volatility, minimum | 68.37% | 67.97% | 61.74% |
Volatility, maximum | 77.68% | 69.90% | 68.18% |
Risk-free interest rate, minimum | 1.62% | 0.62% | 0.36% |
Risk-free interest rate, maximum | 4.23% | 1.39% | 1.66% |
Dividend yield | 0% | 0% | 0% |
2019 Plan | Performance-Based Stock Option | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 10 years | ||
Derived service period (in years) | 4 years 6 months 18 days | ||
Volatility | 63.60% | ||
Risk-free interest rate | 1.02% | ||
Estimated fair value (per share) | $ 3.31 | ||
2019 Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 5 months 26 days | ||
Volatility, minimum | 82.35% | 55.92% | 65.15% |
Volatility, maximum | 112.07% | 74.88% | 102.10% |
Risk-free interest rate, minimum | 1.49% | 0.04% | 0.11% |
Risk-free interest rate, maximum | 4.58% | 0.06% | 0.12% |
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 5 years 6 months | 5 years 6 months | 5 years 6 months |
Minimum | 2019 Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 5 months 26 days | 5 months 26 days | |
Estimated fair value (per share) | $ 1.26 | $ 6.30 | $ 4.29 |
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 29 days | 6 years 3 months 7 days | 6 years 4 months 24 days |
Maximum | 2019 Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 6 months | 6 months | |
Estimated fair value (per share) | $ 2.23 | $ 8.21 | $ 8.12 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Restricted Stock Units Activity (Details) - Restricted Stock Units - 2019 Plan and Inducement Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unvested Restricted Stock Units, Number of Shares, Beginning Balance | 1,679,696 | 619,218 | 120,000 |
Unvested Restricted Stock Units, Number of Shares, granted | 2,071,201 | 1,387,656 | 648,000 |
Unvested Restricted Stock Units, Number of Shares, vested | (897,871) | (266,119) | (130,945) |
Unvested Restricted Stock Units, Number of Shares, forfeited | (231,544) | (61,059) | (17,837) |
Unvested Restricted Stock Units, Number of Shares, Ending Balance | 2,621,482 | 1,679,696 | 619,218 |
Unvested Restricted Stock Units, Weighted-Average Grant Date Fair Value, Beginning Balance | $ 16.35 | $ 10.41 | $ 8.86 |
Estimated fair value (per share) | 4.86 | 18.05 | 9.93 |
Unvested Restricted Stock Units, Weighted-Average Grant Date Fair Value, vested | 11.74 | 10.93 | 7.09 |
Unvested Restricted Stock Units, Weighted-Average Grant Date Fair Value, forfeited | 10.94 | 18.45 | 6.83 |
Unvested Restricted Stock Units, Weighted-Average Grant Date Fair Value, Ending Balance | $ 9.33 | $ 16.35 | $ 10.41 |
Unvested Restricted Stock Units, Aggregate Fair Value | $ 23,969 | $ 22,670 | $ 1,308 |
Restricted Stock Units, Aggregate Fair Value, vested | 3,189 | 5,521 | 2,991 |
Unvested Restricted Stock Units, Aggregate Fair Value | $ 5,191 | $ 23,969 | $ 22,670 |
Stock-Based Compensation - Su_5
Stock-Based Compensation - Summary of Stock-Based Compensation Expense by Function (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 19,433 | $ 14,378 | $ 8,238 |
Costs of revenues | |||
Stock Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | 1,922 | 1,414 | 854 |
Research and development | |||
Stock Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | 5,256 | 4,064 | 1,773 |
Selling, general, and administrative | |||
Stock Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 12,255 | $ 8,900 | $ 5,611 |
Stock-Based Compensation - Su_6
Stock-Based Compensation - Summary of Stock-Based Compensation Expense by Award Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 19,433 | $ 14,378 | $ 8,238 |
Stock Options | |||
Stock Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | 8,560 | 8,585 | 4,729 |
Performance-based Stock Options | |||
Stock Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | 1,392 | ||
RSUs | |||
Stock Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | 9,990 | 4,765 | 1,401 |
ESPP | |||
Stock Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 883 | $ 1,028 | $ 716 |
Basic and Diluted Net Loss Pe_3
Basic and Diluted Net Loss Per Common Share - Schedule of Computation of Basic and Diluted Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net loss | $ (113,315) | $ (65,226) | $ (41,280) |
Weighted-average common shares outstanding—basic | 45,704,805 | 43,886,730 | 34,374,903 |
Weighted-average common shares outstanding—diluted | 45,704,805 | 43,886,730 | 34,374,903 |
Net loss per common share—basic | $ (2.48) | $ (1.49) | $ (1.20) |
Net loss per common share—diluted | $ (2.48) | $ (1.49) | $ (1.20) |
Basic and Diluted Net Loss Pe_4
Basic and Diluted Net Loss Per Common Share - Schedule of Potentially Dilutive Shares Excluded from Computation of Diluted Net Loss per Common Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potentially dilutive securities excluded from computation of diluted net loss per share | 9,121,354 | 7,190,482 | 6,047,326 |
Options To Purchase Common Stock | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potentially dilutive securities excluded from computation of diluted net loss per share | 5,872,132 | 5,423,419 | 5,369,306 |
Unvested RSUs | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potentially dilutive securities excluded from computation of diluted net loss per share | 2,621,482 | 1,679,696 | 619,218 |
ESPP | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potentially dilutive securities excluded from computation of diluted net loss per share | 627,740 | 87,367 | 58,802 |
Income Taxes - Schedule of Loss
Income Taxes - Schedule of Loss Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (113,558) | $ (65,415) | $ (41,404) |
Foreign | 283 | 203 | 181 |
Loss before income taxes | $ (113,275) | $ (65,212) | $ (41,223) |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
State | $ 5 | $ 26 | |
Foreign | 66 | $ 43 | 31 |
Total current | 71 | 43 | 57 |
Provision for income taxes | 40 | 14 | $ 57 |
Deferred: | |||
Foreign | (31) | (29) | |
Total deferred | $ (31) | $ (29) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 27, 2020 | |
Income Tax Disclosure [Line Items] | ||||
Federal corporate tax rate | 21% | 21% | 21% | |
Deferred social payroll taxes CARES act | $ 700,000 | |||
Payroll taxes paid CARES Act | $ 300,000 | |||
Increase (Decrease) in valuation allowance on deferred tax assets | $ 32,900,000 | 24,800,000 | ||
Expense, interest or penalties | 0 | 0 | $ 0 | |
Accrued, interest or penalties | 0 | $ 0 | $ 0 | |
Federal | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryforwards | 249,100,000 | |||
Net operating loss carryforwards, subject to expiration | $ 86,100,000 | |||
Net operating loss carryforwards, begins to expire | 2031 | |||
Tax credit carryforward | $ 8,600,000 | |||
Tax credit carryforward, begins to expire | 2031 | |||
State | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryforwards | $ 229,700,000 | |||
Net operating loss carryforwards, begins to expire | 2031 | |||
State | Research | ||||
Income Tax Disclosure [Line Items] | ||||
Tax credit carryforward | $ 8,200,000 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Provision Related to Continuing Operations Statutory Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Expected tax (benefit) at federal statutory rate | (21.00%) | (21.00%) | (21.00%) |
Effect of: | |||
State taxes | (6.00%) | (9.00%) | (10.00%) |
Change in valuation allowance | 28% | 36% | 38% |
Stock-based compensation | 1% | (3.00%) | (4.00%) |
Research and development credit | (2.00%) | (3.00%) | (3.00%) |
Effective tax rate | 0% | 0% | 0% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets for Federal and State Income Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 72,408 | $ 61,219 |
Capitalized research and development | 11,972 | |
Research and development credits | 16,824 | 12,127 |
Deferred revenue | 38 | 164 |
Accruals and reserves | 1,914 | 2,846 |
Stock-based compensation | 5,197 | 4,435 |
Operating lease liabilities | 13,455 | 16,406 |
Other intangibles | 267 | 321 |
Other | 236 | 115 |
Total gross deferred tax assets | 122,311 | 97,633 |
Less: valuation allowance | (114,483) | (81,628) |
Total deferred tax assets | 7,828 | 16,005 |
Deferred tax liabilities: | ||
Property and equipment | (108) | (356) |
Operating lease right-of-use assets | (7,659) | (15,620) |
Total deferred tax liabilities | 7,767 | 15,976 |
Net deferred tax assets | $ 61 | $ 29 |
Income Taxes - Summary of Unrec
Income Taxes - Summary of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $ 3,066 | $ 2,148 |
Gross increase—tax position in current period | 1,174 | 918 |
Ending balance | $ 4,240 | $ 3,066 |
Subsequent Events (Additional I
Subsequent Events (Additional Information) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2023 | Mar. 31, 2023 | Feb. 23, 2023 | |
Forecast | |||
Subsequent Event [Line Items] | |||
Severance payments and employee benefits | $ 3 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Percentage of reduction in workforce | 30% | ||
Subsequent Event | Maximum | |||
Subsequent Event [Line Items] | |||
One-time charge expected | $ 1.5 |