DermTech (DMTKQ) 10-Q 2 Nov 23 2023 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2023	Oct. 27, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-38118
Entity Registrant Name	DERMTECH, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-2870849
Entity Address, Address Line One	12340 El Camino Real
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92130
City Area Code	858
Local Phone Number	450-4222
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	DMTK
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		34,243,022
Entity Central Index Key	0001651944
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 37,230	$ 77,757
Short-term marketable securities	30,970	48,411
Accounts receivable	3,605	4,172
Inventory	1,196	1,757
Prepaid expenses and other current assets	2,928	3,940
Total current assets	75,929	136,037
Property and equipment, net	5,611	6,375
Operating lease right-of-use assets	52,889	56,007
Restricted cash	3,467	3,488
Other assets	0	168
Total assets	137,896	202,075
Current liabilities:
Accounts payable	1,703	2,419
Accrued compensation	5,773	7,894
Accrued liabilities	1,946	3,464
Short-term deferred revenue	236	109
Current portion of operating lease liabilities	2,941	1,634
Current portion of finance lease obligations	37	116
Total current liabilities	12,636	15,636
Warrant liability	1	5
Long-term finance lease obligations, less current portion	42	53
Operating lease liabilities, long-term	52,153	54,028
Total liabilities	64,832	69,722
Stockholders’ equity:
Common stock, $0.0001 par value per share; 100,000,000 and 50,000,000 shares authorized as of September 30, 2023 and December 31, 2022, respectively; 34,241,523 and 30,297,408 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively	3	3
Additional paid-in capital	477,778	456,171
Accumulated other comprehensive income/(loss)	127	(774)
Accumulated deficit	(404,844)	(323,047)
Total stockholders’ equity	73,064	132,353
Total liabilities and stockholders’ equity	$ 137,896	$ 202,075

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Common stock, par value per share (in usd per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	100,000,000	50,000,000
Common stock, shares issued (in shares)	34,241,523	30,297,408
Common stock, shares outstanding (in shares)	34,241,523	30,297,408

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues:
Total revenues	$ 3,915	$ 3,573	$ 11,372	$ 11,524
Cost of revenues:
Total cost of revenues	3,743	3,694	11,536	10,521
Gross profit/(loss)	172	(121)	(164)	1,003
Operating expenses:
Sales and marketing	8,123	14,632	36,573	45,076
Research and development	3,595	5,702	11,891	18,955
General and administrative	8,264	8,806	35,359	26,258
Total operating expenses	19,982	29,140	83,823	90,289
Loss from operations	(19,810)	(29,261)	(83,987)	(89,286)
Nonoperating Income (Expense) [Abstract]
Interest income, net	641	485	2,186	700
Change in fair value of warrant liability	5	4	4	126
Total other income	646	489	2,190	826
Net loss	$ (19,164)	$ (28,772)	$ (81,797)	$ (88,460)
Weighted average shares outstanding used in computing net loss per share, basic (in shares)	33,835,370	30,096,261	32,073,448	29,969,435
Weighted average shares outstanding used in computing net loss per share, diluted (in shares)	33,835,370	30,096,261	32,073,448	29,969,435
Net loss per share of common stock outstanding, basic (in usd per share)	$ (0.57)	$ (0.96)	$ (2.55)	$ (2.95)
Net loss per share of common stock outstanding, diluted (in usd per share)	$ (0.57)	$ (0.96)	$ (2.55)	$ (2.95)
Test revenue
Revenues:
Total revenues	$ 3,692	$ 3,433	$ 10,682	$ 11,098
Cost of revenues:
Total cost of revenues	3,661	3,644	11,361	10,410
Contract revenue
Revenues:
Total revenues	223	140	690	426
Cost of revenues:
Total cost of revenues	$ 82	$ 50	$ 175	$ 111

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net loss	$ (19,164)	$ (28,772)	$ (81,797)	$ (88,460)
Unrealized net gain/(loss) on marketable securities and cash equivalents	228	(230)	901	(971)
Comprehensive loss	$ (18,936)	$ (29,002)	$ (80,896)	$ (89,431)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands	Total	Common stock	Additional paid-in capital	Accumulated other comprehensive (loss) income	Accumulated deficit
Beginning balance (in shares) at Dec. 31, 2021		29,772,922
Beginning balance at Dec. 31, 2021	$ 229,698	$ 3	$ 436,183	$ (124)	$ (206,364)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock from option exercises and RSU releases (in shares)		109,275
Issuance of common stock from option exercises and RSU releases	40		40
Issuance of common stock from warrant exercises (in shares)		11,101
Issuance of common stock from warrant exercises	12		12
Issuance of common stock from Employee Stock Purchase Plan (in shares)		47,339
Issuance of common stock from Employee Stock Purchase Plan	515		515
Unrealized net gain/(loss) on marketable securities and cash equivalents	(570)			(570)
Stock-based compensation	3,894		3,894
Net loss	(30,108)				(30,108)
Ending balance (in shares) at Mar. 31, 2022		29,940,637
Ending balance at Mar. 31, 2022	203,481	$ 3	440,644	(694)	(236,472)
Beginning balance (in shares) at Dec. 31, 2021		29,772,922
Beginning balance at Dec. 31, 2021	229,698	$ 3	436,183	(124)	(206,364)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Unrealized net gain/(loss) on marketable securities and cash equivalents	(971)
Net loss	(88,460)
Ending balance (in shares) at Sep. 30, 2022		30,213,206
Ending balance at Sep. 30, 2022	154,988	$ 3	450,904	(1,095)	(294,824)
Beginning balance (in shares) at Dec. 31, 2021		29,772,922
Beginning balance at Dec. 31, 2021	229,698	$ 3	436,183	(124)	(206,364)
Ending balance (in shares) at Dec. 31, 2022		30,297,408
Ending balance at Dec. 31, 2022	132,353	$ 3	456,171	(774)	(323,047)
Beginning balance (in shares) at Mar. 31, 2022		29,940,637
Beginning balance at Mar. 31, 2022	203,481	$ 3	440,644	(694)	(236,472)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock from option exercises and RSU releases (in shares)		88,591
Issuance of common stock from option exercises and RSU releases	0
Issuance of common stock from warrant exercises (in shares)		9,219
Issuance of common stock from warrant exercises	10		10
Unrealized net gain/(loss) on marketable securities and cash equivalents	(171)			(171)
Stock-based compensation	4,837		4,837
Net loss	(29,580)				(29,580)
Ending balance (in shares) at Jun. 30, 2022		30,038,447
Ending balance at Jun. 30, 2022	178,577	$ 3	445,491	(865)	(266,052)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock from option exercises and RSU releases (in shares)		74,010
Issuance of common stock from option exercises and RSU releases	0
Issuance of common stock from warrant exercises	0
Issuance of common stock from Employee Stock Purchase Plan (in shares)		100,749
Issuance of common stock from Employee Stock Purchase Plan	477		477
Unrealized net gain/(loss) on marketable securities and cash equivalents	(230)			(230)
Stock-based compensation	4,936		4,936
Net loss	(28,772)				(28,772)
Ending balance (in shares) at Sep. 30, 2022		30,213,206
Ending balance at Sep. 30, 2022	154,988	$ 3	450,904	(1,095)	(294,824)
Beginning balance (in shares) at Dec. 31, 2022		30,297,408
Beginning balance at Dec. 31, 2022	132,353	$ 3	456,171	(774)	(323,047)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of issuance costs shares (in shares)		107,451
Issuance of common stock, net of issuance costs shares	270		270
Issuance of common stock from option exercises and RSU releases (in shares)		510,027
Issuance of common stock from option exercises and RSU releases	92		92
Issuance of common stock from Employee Stock Purchase Plan (in shares)		174,025
Issuance of common stock from Employee Stock Purchase Plan	576		576
Unrealized net gain/(loss) on marketable securities and cash equivalents	485			485
Stock-based compensation	4,736		4,736
Net loss	(31,270)				(31,270)
Ending balance (in shares) at Mar. 31, 2023		31,088,911
Ending balance at Mar. 31, 2023	107,242	$ 3	461,845	(289)	(354,317)
Beginning balance (in shares) at Dec. 31, 2022		30,297,408
Beginning balance at Dec. 31, 2022	132,353	$ 3	456,171	(774)	(323,047)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Unrealized net gain/(loss) on marketable securities and cash equivalents	901
Net loss	(81,797)
Ending balance (in shares) at Sep. 30, 2023		34,241,523
Ending balance at Sep. 30, 2023	73,064	$ 3	477,778	127	(404,844)
Beginning balance (in shares) at Mar. 31, 2023		31,088,911
Beginning balance at Mar. 31, 2023	107,242	$ 3	461,845	(289)	(354,317)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of issuance costs shares (in shares)		1,759,210
Issuance of common stock, net of issuance costs shares	4,495		4,495
Issuance of common stock from option exercises and RSU releases (in shares)		560,689
Issuance of common stock from option exercises and RSU releases	0
Unrealized net gain/(loss) on marketable securities and cash equivalents	188			188
Stock-based compensation	7,515		7,515
Net loss	(31,363)				(31,363)
Ending balance (in shares) at Jun. 30, 2023		33,408,810
Ending balance at Jun. 30, 2023	88,077	$ 3	473,855	(101)	(385,680)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of issuance costs shares (in shares)		302,598
Issuance of common stock, net of issuance costs shares	483		483
Issuance of common stock from option exercises and RSU releases (in shares)		371,448
Issuance of common stock from option exercises and RSU releases	(34)		(34)
Issuance of common stock from Employee Stock Purchase Plan (in shares)		158,667
Issuance of common stock from Employee Stock Purchase Plan	311		311
Unrealized net gain/(loss) on marketable securities and cash equivalents	228			228
Stock-based compensation	3,163		3,163
Net loss	(19,164)				(19,164)
Ending balance (in shares) at Sep. 30, 2023		34,241,523
Ending balance at Sep. 30, 2023	$ 73,064	$ 3	$ 477,778	$ 127	$ (404,844)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders’ Equity (Parenthetical) - Common stock - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023
Issuance price per share (in usd per share)	$ 2.55	$ 2.62	$ 3.68
Issuance costs	$ 0.3	$ 0.1	$ 0.1

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net loss	$ (81,797)	$ (88,460)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	1,382	1,187
Change in fair value of warrant liability	(4)	(126)
Amortization of operating lease right-of-use assets	3,118	1,788
Stock-based compensation	15,414	13,667
Amortization of premiums, net of accretion of discounts on marketable securities	(344)	328
Loss on disposal of equipment	14	350
Changes in operating assets and liabilities:
Accounts receivable	567	(2,254)
Inventory	561	(911)
Prepaid expenses and other current assets	1,180	(1,046)
Operating lease liabilities	(568)	(2,709)
Accounts payable, accrued liabilities and deferred revenue	(1,674)	955
Accrued compensation	(2,121)	3,201
Net cash used in operating activities	(64,272)	(74,030)
Cash flows from investing activities:
Purchases of marketable securities	(34,373)	(26,420)
Sales and maturities of marketable securities	53,059	19,934
Purchases of property and equipment	(1,065)	(1,372)
Net cash provided by/(used in) investing activities	17,621	(7,858)
Cash flows from financing activities:
Proceeds from issuance of common stock in connection with at-the-market offering, net	5,248	0
Proceeds from exercise of common stock warrants	0	22
Proceeds from exercise of stock options	58	40
Proceeds from contributions to the Employee Stock Purchase Plan	887	992
Principal repayments of finance lease obligations	(90)	(104)
Net cash provided by financing activities	6,103	950
Net decrease in cash, cash equivalents and restricted cash	(40,548)	(80,938)
Cash, cash equivalents and restricted cash, beginning of period	81,245	179,907
Cash, cash equivalents and restricted cash, end of period	40,697	98,969
Reconciliation of cash, cash equivalents and restricted cash, end of period:
Cash and cash equivalents	37,230	95,492
Restricted cash	3,467	3,477
Total cash, cash equivalents and restricted cash	40,697	98,969
Supplemental cash flow information:
Cash paid for interest on finance lease obligations	4	10
Supplemental disclosure of noncash investing and financing activities:
Purchases of property and equipment recorded in accounts payable	15	511
Right-of-use assets obtained in exchange for lease obligations	0	18,688
Property and equipment acquired under finance leases	0	48
Change in unrealized net gains/(losses) on available-for-sale marketable securities	$ 913	$ (971)

The Company and a Summary of it

The Company and a Summary of its Significant Accounting Policies	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
The Company and a Summary of its Significant Accounting Policies	The Company and a Summary of its Significant Accounting Policies (a) Nature of Operations On August 29, 2019, DermTech, Inc., formerly known as Constellation Alpha Capital Corp, (the “Company”), and DermTech Operations, Inc., formerly known as DermTech, Inc., (“DermTech Operations”), consummated the transactions contemplated by the Agreement and Plan of Merger, dated as of May 29, 2019, by and among the Company, DT Merger Sub, Inc., a wholly owned subsidiary of the Company (“Merger Sub”), and DermTech Operations. The Company refers to this agreement, as amended by that certain First Amendment to Agreement and Plan of Merger dated as of August 1, 2019, as the Merger Agreement. Pursuant to the Merger Agreement, Merger Sub merged with and into DermTech Operations, with DermTech Operations surviving as a wholly-owned subsidiary of the Company. The Company refers to this transaction as the Business Combination. In connection with and two days prior to the completion of the Business Combination, the Company domesticated from the British Virgin Islands to Delaware. DermTech Operations changed its name from DermTech, Inc. to DermTech Operations, Inc. shortly before the completion of the Business Combination. On August 29, 2019, immediately following the completion of the Business Combination, the Company changed its name from Constellation Alpha Capital Corp. to DermTech, Inc., and then effected a one-for-two reverse stock split of its common stock. The Company is a molecular diagnostic company developing and marketing its Clinical Laboratory Improvement Amendments of 1988 (“CLIA”) laboratory services including molecular pathology tests to facilitate the diagnosis of melanoma and management of skin cancer. The Company has developed a proprietary, non-invasive technique for sampling the surface layers of the skin using an adhesive patch called the DermTech Smart Sticker™ (the “Smart Sticker”) in order to collect individual biological information for commercial applications in the medical diagnostic field. The Company has incurred operating losses since inception and has an accumulated deficit of $404.8 million at September 30, 2023. As of September 30, 2023, cash and cash equivalents totaled approximately $37.2 million and short-term marketable securities totaled approximately $31.0 million. The Company's transition to profitable operations is dependent upon achieving a level of revenues adequate to support its cost structure. The timing and amount of the Company's actual expenditures will be based on many factors, including cash flows from operations and the potential growth of its business, and may vary from current estimates. The Company's management believes that based on its currently planned business operations and considering the restructuring activities (Note 5) implemented in June 2023, currently available resources will provide sufficient funds to meet its anticipated operating costs for at least the next 12 months from the issuance of these unaudited condensed consolidated financial statements for the quarter ended September 30, 2023 (this 12-month period from the date of issuance, the “Evaluation Period”). This assessment must be made by management on a quarterly basis based on the facts and circumstances then in existence and available to or known by management. The Company currently anticipates that it will need to raise additional capital, increase average selling prices and revenues, or further reduce operating costs following the Evaluation Period and by the time of filing of the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2023, in order for the Company to have sufficient funds to meet its anticipated operating costs for at least 12 months following the next Evaluation Period. In the event the Company is not successful in raising additional capital, the Company may be required to further reduce operating expenses, which could have an adverse impact on its ability to achieve its intended business objectives. (b) Basis of Presentation The condensed consolidated financial statements include the accounts of DermTech, Inc. and its subsidiary. All intercompany balances and transactions among the consolidated entity have been eliminated in consolidation. These unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these unaudited condensed consolidated financial statements and accompanying notes do not include all the information and disclosures required by U.S. GAAP for complete financial statements and should be read together with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. In the opinion of management, all adjustments, which include only normal recurring adjustments considered necessary for a fair presentation, have been included. The accompanying unaudited condensed consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the unaudited condensed consolidated financial statements. As of September 30, 2023, there have been no material changes in the Company's significant accounting policies from those that were disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. (c) Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires that management 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 unaudited condensed consolidated financial statements and the amounts of revenues and expenses reported during the period. On an ongoing basis, management evaluates these estimates and judgments, including but not limited to those related to test revenue, stock-based compensation, short-term marketable securities, accounts receivable, accrued bonus, warrant liability, right-of-use (“ROU”) assets and the realization of deferred tax assets. Actual results may differ from those estimates. (d) Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and available-for-sale marketable securities. The Company invests its cash balances in major financial institutions that it believes have high credit quality and are insured with the Federal Deposit Insurance Corporation (“FDIC”). At times throughout the year, cash deposits might exceed FDIC insurance limits. The Company has not experienced any losses and does not believe it is exposed to any significant credit risk. (e) Revenue Recognition The Company’s revenue is generated from two revenue streams: contract revenue and test revenue. The Company accounts for revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). The core principle of ASC 606 is that the Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The ASC 606 revenue recognition model consists of the following five steps: (1) identify the contracts with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The Company recognizes revenue from its test and contract services in accordance with the core principles and key aspects considered by the Company. These considerations are described in detail below, first for test revenue and then for contract revenue. Test Revenue The Company generates revenues from its DermTech Melanoma Test or “DMT” which may consist at the option of the ordering clinician of either (i) the DMT or (ii) the DMT with TERT test, which assists a clinician’s diagnosis of melanoma in patients. The Company provides prescribing clinicians with its Smart Sticker to perform non-invasive skin biopsies of clinically ambiguous pigmented skin lesions on patients. The Company also offers clinicians a telemedicine solution where they can request the Smart Sticker collection kit be sent to the patient’s home for a clinician-guided remote sample collection of ambiguous pigmented skin lesions. A patient can also initiate the process by downloading the Company’s telemedicine app, DermTech Connect, which uses store-and-forward technology to allow the patient to take a picture of a suspicious lesion with their phone and have the picture reviewed by an independent clinician who is subscribing to the DermTech Connect platform to assess the suspicious lesion, and if medically necessary, order a DMT and send a collection kit to the patient. The DermTech Connect app and telemedicine service are currently available in most states where permitted by law and applicable standards of practice guidelines. Once the sample is collected by the patient via the telemedicine solution or by a healthcare clinician in person, it is returned to the Company’s CLIA laboratory for analysis. The patient’s ribonucleic acid (“RNA”) and deoxyribonucleic acid (“DNA”) are extracted from the Smart Sticker and analyzed using gene expression and sequencing technology to determine if the pigmented skin lesion contains certain genomic features indicative of melanoma. Upon completion of the gene expression analysis, test results are provided to the clinician indicating whether the sample collected is indicative of melanoma or not. The Company periodically updates its estimate of the variable consideration recognized for previously delivered performance obligations. These updates resulted in a decrease of $37,000 and $0.9 million in revenue for the three and nine months ended September 30, 2023, respectively, and a decrease of $0.5 million and $0.5 million in revenue for the three and nine months ended September 30, 2022, respectively. These amounts included (i) adjustments for actual collections versus estimated variable consideration as of the beginning of the reporting period and (ii) cash collections and the related recognition of revenue in the current period for tests delivered in prior periods due to the release of the constraint on variable consideration, offset by (iii) reductions in revenue for the accrual for reimbursement claims and settlements. Contract Revenue Contract revenue is generated from the sale of laboratory services and Smart Stickers to third-party companies through contract research agreements. Revenues are generated from providing gene expression services to facilitate the development of drugs designed to treat dermatologic conditions. The provision of gene expression services may include sample collection using the Company’s Smart Sticker, assay development for research partners and RNA extraction, isolation, expression, amplification and detection, including data analysis and reporting. Contract revenue can be highly variable in any period as it is closely linked to the clinical trial progress of the Company’s biopharma customers. (a) Disaggregation of Revenue The following table presents the Company’s revenues disaggregated by revenue source during the three and nine months ended September 30, 2023 and 2022 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Test Revenue: DermTech Melanoma Test $ 3,692 $ 3,433 $ 10,682 $ 11,098 Contract Revenue: Adhesive patch kits 75 22 499 126 RNA extractions 141 94 157 204 Project management fees 7 24 34 96 Total revenues $ 3,915 $ 3,573 $ 11,372 $ 11,524 (b) Deferred Revenue and Remaining Performance Obligations The timing of revenue recognition, billings and cash collections results in billed accounts receivable and deferred revenue on the condensed consolidated balance sheets. In a majority of historical agreements that produced contract revenue, the Company received a substantial up-front payment and additional payments upon the achievement of various milestones over the life of the agreement. This results in deferred revenue and is relieved upon delivery of the applicable Smart Stickers or RNA extraction results. Changes in accounts receivable and deferred revenue were not materially impacted by any other factors. The Company records a deferred revenue liability if a customer pays consideration before the Company transfers a good or service to the customer. Deferred revenue primarily represents upfront milestone payments, for which consideration is received prior to when goods/services are completed or delivered. Upfront fees that are estimated to be recognized as revenue more than one year from the date of collection are classified as long-term deferred revenue. Short-term deferred revenue as of September 30, 2023 and December 31, 2022 was $0.2 million and $0.1 million, respectively. As of December 31, 2022, the Company reclassified $1.0 million of short-term deferred revenue to accrued liabilities for a customer refund obligation in connection with cancellation of future services. Remaining performance obligations include deferred revenue and amounts the Company expects to receive for goods and services that have not yet been delivered or provided under existing agreements. For agreements that have an original duration of one year or less, the Company has elected the practical expedient applicable to such agreements and does not disclose the remaining performance obligations at the end of each reporting period. As of September 30, 2023, the estimated revenue expected to be recognized in future periods related to performance obligations that are unsatisfied for executed agreements with an original duration of one year or more was immaterial . (f) Accounts Receivable Test Accounts Receivable Due to the nature of the Company’s test revenue, it can take a significant amount of time to collect upon billed tests. The Company prepares an analysis on reimbursement collections and data obtained for each financial reporting period to determine the amount of receivables to be recorded relating to tests performed in the applicable period. The Company generally does not perform evaluations of customers’ financial condition and generally does not require collateral. Accounts receivable are written off when all efforts to collect the balance have been exhausted. Adjustments for implicit price concessions attributable to variable consideration are incorporated into the measurement of the accounts receivable balances. The Company recorded $3.3 million and $4.1 million of net test accounts receivable as of September 30, 2023 and December 31, 2022, respectively. Contract Accounts Receivable Contract accounts receivable are recorded at the net invoice value and are not interest bearing. The Company reserves specific receivables if collectability is no longer reasonably assured, and, as of September 30, 2023, the Company did not maintain any reserves over contract receivables as they relate to large established credit worthy customers. The Company re-evaluates such reserves on a regular basis and adjusts its reserves as needed. Once a receivable is deemed to be uncollectible, such balance is charged against the reserve. The Company recorded $0.3 million and $0.1 million of contract accounts receivable as of September 30, 2023 and December 31, 2022, respectively. (g) Net Loss Per Share Basic and diluted net loss per share of common stock is determined by dividing net loss applicable to holders of common stock by the weighted average number of shares of common stock outstanding during the period. Because there is a net loss attributable to holders of common stock during the periods presented, the outstanding common stock warrants, stock options and restricted stock units (“RSUs”) have been excluded from the calculation of diluted loss per share of common stock because their effect would be anti-dilutive. Therefore, the weighted average shares used to calculate both basic and diluted loss per share are the same. Outstanding anti-dilutive securities not included in diluted net loss per share (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Shares issuable upon exercise of common stock warrants 706 714 706 714 Shares issuable upon exercise of stock options 1,908 1,732 1,908 1,732 Shares issuable upon the release of restricted stock units 2,702 3,292 2,702 3,292 5,316 5,738 5,316 5,738 (h) Accounting Pronouncements Issued But Not Yet Effective In June 2022, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03“). Under the guidance of ASU 2022-03, a contractual restriction on the sale of an equity security is not considered in measuring the security’s fair value. ASU 2022-03 also requires certain disclosures for equity securities that are subject to contractual restrictions. For public business entities, the provisions of ASU 2022-03 are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2024 and interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. The Company is still evaluating the impact of this pronouncement on the consolidated financial statements. The Company does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material impact on its condensed consolidated financial statements or disclosures.

Balance Sheet Details

Balance Sheet Details	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance Sheet Details	Balance Sheet Details Short-Term Marketable Securities The amortized cost, gross unrealized holding gains, gross unrealized holding losses, and fair value of debt securities classified as available-for-sale securities by major security type and class of security as of September 30, 2023 were as follows (in thousands): September 30, 2023 Amortized Cost Gross Unrealized Gross Unrealized Estimated Short-term marketable securities, available-for-sale: Corporate debt securities $ 2,623 $ — $ (22) $ 2,601 U.S. government debt securities 28,234 234 (99) 28,369 Total short-term marketable securities, available-for-sale $ 30,857 $ 234 $ (121) $ 30,970 The amortized cost, gross unrealized holding gains, gross unrealized holding losses, and fair value of debt securities classified as available-for-sale securities by major security type and class of security as of December 31, 2022 were as follows (in thousands): December 31, 2022 Amortized Cost Gross Unrealized Gross Unrealized Estimated Short-term marketable securities, available-for-sale: Corporate debt securities $ 13,535 $ 2 $ (236) $ 13,301 Municipal debt securities 1,001 — (8) 993 U.S. government debt securities 34,675 10 (568) 34,117 Total short-term marketable securities, available-for-sale $ 49,211 $ 12 $ (812) $ 48,411 As of September 30, 2023, the estimated market value of debt securities with contractual maturities of less than twelve months was $29.7 million; the remaining debt securities that the Company held at that date had an estimated market value of $1.3 million and contractual maturities of up to 14 months. As of December 31, 2022, the estimated market value of debt securities with contractual maturities of less than twelve months was $40.2 million; the remaining debt securities that the Company held at that date had an estimated market value of $8.2 million and contractual maturities of up to 23 months. The Company evaluates securities with unrealized losses to determine whether such losses, if any, are due to credit-related factors. It was determined that no credit losses existed as of September 30, 2023 or December 31, 2022 because the change in market value for those securities in an unrealized loss position has resulted from fluctuating interest rates rather than a deterioration of the credit worthiness of the issuers. Gross realized gains and losses on the Company’s debt securities for the three and nine months ended September 30, 2023 and 2022 were not significant. The following table presents gross unrealized losses and fair values for those investments that were in an unrealized loss position as of September 30, 2023 aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): September 30, 2023 Less Than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Short-term marketable securities, available-for-sale: Corporate debt securities $ 2,004 $ (15) $ 596 $ (7) $ 2,600 $ (22) U.S. government debt securities 7,768 (93) 716 (6) 8,484 (99) Total short-term marketable securities, available-for-sale $ 9,772 $ (108) $ 1,312 $ (13) $ 11,084 $ (121) The following table presents gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2022, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): December 31, 2022 Less Than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Short-term marketable securities, available-for-sale: Corporate debt securities $ 6,533 $ (105) $ 5,503 $ (131) $ 12,036 $ (236) Municipal securities — — 992 (8) 992 (8) U.S. government debt securities 10,907 (196) 19,026 (372) 29,933 (568) Total short-term marketable securities, available-for-sale $ 17,440 $ (301) $ 25,521 $ (511) $ 42,961 $ (812) Prepaid Expenses and Property and Equipment, Net Condensed consolidated balance sheet details are as follows (in thousands): September 30, December 31, Prepaid expenses and other current assets: Prepaid expenses $ 2,398 $ 3,207 Other current assets 530 733 Total prepaid expenses and other current assets $ 2,928 $ 3,940 Property and equipment, gross: Laboratory equipment $ 6,297 $ 6,250 Computer equipment 831 872 Furniture and fixtures 1,247 913 Leasehold improvements 604 1,344 Total property and equipment, gross 8,979 9,379 Less accumulated depreciation (3,368) (3,004) Total property and equipment, net $ 5,611 $ 6,375 Accrued Compensation and Accrued Liabilities Condensed consolidated balance sheet details are as follows (in thousands): September 30, December 31, Accrued compensation: Accrued bonus and commissions $ 2,591 $ 3,257 Accrued salaries and wages 3,182 4,637 Total accrued compensation $ 5,773 $ 7,894 Accrued liabilities: Accrued consulting services $ 125 $ 894 Customer refund liability 980 980 Restructuring liability 65 — Other accrued expenses 776 1,590 Total accrued liabilities $ 1,946 $ 3,464

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value MeasurementsThe Company measures certain financial assets and liabilities at fair value on a recurring basis. 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 measurement date. The Company uses a three-tier fair value hierarchy to prioritize the inputs used in the Company’s fair value measurements. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The following table provides a summary of the assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2023 (in thousands): September 30, 2023 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market $ 8,883 $ — $ — $ 8,883 Corporate debt securities — 5,504 — 5,504 U.S. government debt securities — 8,689 — 8,689 Total cash equivalents 8,883 14,193 — 23,076 Marketable securities, available for sale: Corporate debt securities — 2,601 — 2,601 U.S. government debt securities — 28,369 — 28,369 Total marketable securities, available for sale — 30,970 — 30,970 Total assets measured at fair value on a recurring basis $ 8,883 $ 45,163 $ — $ 54,046 Liabilities: Warrant liability $ — $ — $ 1 $ 1 Total liabilities measured at fair value on a recurring basis $ — $ — $ 1 $ 1 The following table provides a summary of the assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2022 (in thousands): December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money Market $ 9,365 $ — $ — $ 9,365 Corporate debt securities — 7,374 — 7,374 U.S. government debt securities — 18,396 — 18,396 Total cash equivalents 9,365 25,770 — 35,135 Marketable securities, available for sale: Corporate debt — 13,301 — 13,301 Municipal debt securities — 993 — 993 U.S. government debt securities — 34,117 — 34,117 Total marketable securities, available for sale — 48,411 — 48,411 Total assets measured at fair value on a recurring basis $ 9,365 $ 74,181 $ — $ 83,546 Liabilities: Warrant liability $ — $ — $ 5 $ 5 Total liabilities measured at fair value on a recurring basis $ — $ — $ 5 $ 5 The Company’s marketable debt securities are classified as available-for-sale securities based on management's intentions and are at Level 2 of the fair value hierarchy, as these investment securities are valued based upon quoted prices for identical or similar instruments in markets that are not active. The Company has classified marketable securities with original maturities of greater than one year as short-term investments based upon the Company’s ability to use all of those marketable securities to satisfy the liquidity needs of the Company’s current operations. The fair value of the Private SPAC Warrants (as defined below) was determined using the Black-Scholes-Merton valuation model and included an unobservable input: expected volatility. Expected volatility is considered by the Company to be an unobservable input and is calculated using a weighted average of historical volatilities of a combination of the Company and peer companies, due to the lack of sufficient historical data of the Company’s own stock price. The model also incorporated several observable assumptions at each valuation date, including the price of the Company’s common stock on the date of valuation, the remaining contractual term of the warrant and the risk-free interest rate over the remaining term. The following assumptions were used to calculate the fair value of the Company’s warrant liability using the Black-Scholes-Merton valuation model: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Assumed risk-free interest rate 5.46% 4.22% 4.35% - 5.46% 2.37% - 4.22% Assumed volatility 134.91% 118.13% 123.28% - 134.91% 92.77% - 118.13% Expected term 0.92 years 1.92 years 0.92 - 1.42 years 1.92 - 2.42 years Expected dividend yield — — — — The following table summarizes the changes in the fair value of the Company’s Level 3 liabilities (in thousands): Balance as of December 31, 2022 $ 5 Change in fair value of warrant liability 7 Balance as of March 31, 2023 $ 12 Change in fair value of warrant liability (6) Balance as of June 30, 2023 $ 6 Change in fair value of warrant liability (5) Balance as of September 30, 2023 $ 1 As of September 30, 2023 and December 31, 2022, the Company maintains letters of credit of $3.5 million and $3.5 million, respectively, related to its lease arrangements, secured by cash of September 30, 2023 and money market accounts as of December 31, 2022, in accordance with certain of its lease agreements. The amounts are recorded at fair value using Level 1 inputs and included as restricted cash in the condensed consolidated balance sheets.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2023
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Stockholders’ Equity (a) Common Stock On June 2, 2023, the Company filed an amendment to its Amended and Restated Certificate of Incorporation, as amended, with the Secretary of State of Delaware to increase the authorized number of shares of common stock of the Company from 50,000,000 to 100,000,000 shares (the “Amended Certificate”). The Amended Certificate was approved by the Company’s stockholders at the 2023 Annual Meeting. (b) At-The-Market Offering On November 10, 2020, the Company entered into a sales agreement (the “2020 Sales Agreement”) with Cowen and Company, LLC (“Cowen”) relating to the sale of shares of the Company’s common stock from time to time with an aggregate offering price of up to $50.0 million. Through December 31, 2021, the Company issued an aggregate of 1,482,343 shares of common stock pursuant to the 2020 Sales Agreement at a weighted average purchase price of $30.05, net of $1.6 million in issuance costs resulting in net proceeds to the Company of approximately $42.9 million. During 2022, the Company did not issue or sell any shares of common stock pursuant to the 2020 Sales Agreement. During the three months ended September 30, 2023, the Company issued an aggregate of 172,000 shares of common stock pursuant to the 2020 Sales Agreement at a weighted average purchase price of $2.59 resulting in aggregate gross and net proceeds of approximately $0.4 million. For the nine months ended September 30, 2023, the Company issued an aggregate of 2,038,661 shares of common stock pursuant to the 2020 Sales Agreement at a weighted average purchase price of $2.68 resulting in aggregate gross proceeds of approximately $5.5 million, reduced by $0.3 million in issuance costs, resulting in net proceeds to the Company of approximately $5.2 million. As of September 30, 2023, the 2020 Sales Agreement has been fully utilized, and no additional shares of common stock may be sold pursuant to the 2020 Sales Agreement. On August 8, 2022, the Company entered into a second sales agreement (the “2022 Sales Agreement”) with Cowen relating to the sale of shares of the Company’s common stock from time to time with an aggregate offering price of up to $75.0 million under a second at-the-market offering program. The Company did not issue any shares of common stock pursuant to the 2022 Sales Agreement prior to the three months ended September 30, 2023. During the three months ended September 30, 2023, the Company issued an aggregate of 130,598 shares of common stock pursuant to the 2022 Sales Agreement at a weighted average purchase price of $2.49 resulting in aggregate gross proceeds of approximately $0.3 million, reduced by $0.2 million in issuance costs, resulting in net proceeds to the Company of approximately $0.1 million. As of September 30, 2023, $74.7 million is available pursuant to the Company's 2022 Sales Agreement. (c) Warrants SPAC Warrants The Company previously issued a total of 14,936,250 SPAC warrants (the "SPAC Warrants") to purchase common stock in public and private placement offerings, which were consummated on June 23, 2017. As part of the public offering, the Company issued 14,375,000 warrants (the "Public SPAC Warrants") and, as part of the private placement offering, the Company issued 561,250 warrants (the "Private SPAC Warrants"). The SPAC Warrants have a five-year life from the date the Business Combination was consummated, and every four SPAC Warrants entitle the holder to purchase one whole share of common stock at an exercise price of $23.00 per whole share. The Private SPAC Warrants are identical to the Public SPAC Warrants, but they (i) are exercisable either for cash or on a cashless basis at the holder’s option, (ii) are not redeemable by the Company as long as such warrants are held by the initial purchasers or their affiliates and permitted transferees, and (iii) may be subject to the limitations on exercise as specified in the warrant agreement. As a result of these differences in features between the Public SPAC Warrants and Private SPAC Warrants, the Company concluded that the Private SPAC Warrants should be classified as a liability, if still held by the original Private SPAC Warrant holder, and marked to market each financial reporting period in the Company’s statement of operations. In 2021, a total of 12,120,397 SPAC Warrants were exercised, resulting in the Company’s issuance of 3,030,092 shares of common stock and the receipt of $69.7 million in gross proceeds. Outstanding SPAC Warrants totaled 2,815,853 as of September 30, 2023 and December 31, 2022. Private SPAC Warrants that were still owned by the original holder totaled 80,350 as of September 30, 2023 and December 31, 2022. Placement Agent Warrants In connection with several of DermTech Operations’ financings that took place between 2015 and 2018, DermTech Operations engaged a registered placement agent to assist in marketing and selling common and preferred units. From 2015 to 2016, DermTech Operations issued 168,522 seven-year warrants to purchase one share of common stock each at an exercise price of $8.68 per share. From 2016 to 2018, DermTech Operations issued 72,658 seven-year warrants to purchase one share of common stock at an exercise price of $9.54 per share. In 2020, the Company issued 15,724 seven-year warrants to purchase one share of common stock at an exercise price of $9.54 per share in connection with the Company’s 2018 bridge note financing. Outstanding placement agent warrants totaled 1,656 and 4,510 as of September 30, 2023 and December 31, 2022, respectively. (d) Stock-Based Compensation Stock-based compensation expense for employee options, RSUs, the purchase rights issued under the DermTech, Inc. 2020 Employee Stock Purchase Plan, as amended (the “2020 ESPP”), and consultant options was recorded in the condensed consolidated statements of operations as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of revenue $ 383 $ 353 $ 1,230 $ 986 Sales and marketing 642 1,294 3,698 3,822 Research and development 701 1,074 1,938 2,899 General and administrative 1,437 2,215 8,548 5,960 Total stock-based compensation $ 3,163 $ 4,936 $ 15,414 $ 13,667 The total compensation cost related to non-vested awards not yet recognized as of September 30, 2023 was $22.5 million, which is expected to be recognized over a weighted average term of 2.45 years. Departure of Former Chief Executive Officer Stock-based compensation expense for the three and nine months ended September 30, 2023 includes accelerated expense of zero and $3.0 million, respectively, in connection with the transition agreement dated March 1, 2023, between the Company and its former Chief Executive Officer, John Dobak, M.D. (the "Transition Agreement"). The accelerated expense is included within general and administrative expenses in the condensed consolidated statement of operations. Dr. Dobak resigned from his position as Chief Executive Officer and member of the board of directors of the Company (the "Board") effective May 8, 2023 and agreed to serve as a consultant to the Company on an as needed basis until January 1, 2024. The terms of the Transition Agreement allow for continuing vesting of Dr. Dobak's equity awards through the end of the consulting period on January 1, 2024. At the termination of the consulting period, consistent with Dr. Dobak's change of control and severance plan, he will immediately receive an additional 10 months vesting of equity awards and the period to exercise his vested stock options will be increased from 90 days to 12 months. The Company assessed the consulting services under the Transition Agreement as nonsubstantive pursuant to ASC 718, Compensation – Stock Compensation (ASC 718)

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Restructuring Plan On June 26, 2023, the Board approved a restructuring plan (the “Restructuring Plan”) to prioritize growth opportunities for the DMT, streamline operations, suspend pipeline programs, and significantly reduce overall operating expenses. The Restructuring Plan included a reduction of the Company’s workforce by approximately 15%. The actions associated with the employee restructuring under the Restructuring Plan were substantially completed in the third quarter of 2023. The Company incurred $2.1 million in restructuring charges in connection with the Restructuring Plan for the nine months ended September 30, 2023, which consist of $1.8 million in charges related to severance payments and employee benefits and $0.3 million in charges related to stock-based compensation for the acceleration of share-based awards. No restructuring charges were incurred for the three months ended September 30, 2023. Restructuring charges are included in general and administrative expenses in the condensed consolidated statement of operations. The restructuring liability as of September 30, 2023 is $0.1 million and is included within accrued liabilities in the condensed consolidated balance sheets. Legal Proceedings From time to time, the Company may be subject to legal proceedings and claims arising in the ordinary course of business. Because legal proceedings are inherently uncertain, we are unable to predict the ultimate outcome of these matters, management does not believe that the outcome of any of these matters will have a material effect on the Company’s consolidated financial position, results of operations or cash flows. However, there can be no assurance as to the ultimate outcome of these matters. On October 16, 2023, a purported class action lawsuit titled Bagheri v. DermTech, Inc., et al., Case No. 23-cv-1885-DMS-JLB, was filed in the United States District Court for the Southern District of California against the Company and certain of its current and/or former officers (collectively, “Defendants”). The complaint was filed on behalf of persons who purchased or otherwise acquired the Company’s publicly traded securities between May 3, 2022 and November 3, 2022. The complaint generally alleges that the Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by making false and misleading statements regarding the Company’s business, operations, and prospects. The action includes claims for damages and an award of reasonable costs and attorneys’ fees and expert fees. Given the early stage of this litigation, the probability of an outcome cannot be determined at this time. The Company intends to vigorously defend against all claims.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions During 2022 and 2023, the Company engaged EVERSANA Life Science Services, LLC and its subsidiary Intouch Group, LLC (collectively, “EVERSANA”) to provide certain marketing services to the Company. Leana Wood, the spouse of Todd Wood, the Company’s former Chief Commercial Officer, is an employee of EVERSANA. Mr. Wood's last day of employment as Chief Commercial Officer of the Company was July 3, 2023. The Company incurred $2,000 and $1.1 million in costs for the three months ended September 30, 2023 and 2022, respectively, and $0.9 million and $2.8 million in costs for the nine months ended September 30, 2023 and 2022, respectively. Amounts due to EVERSANA were zero and $0.3 million as of September 30, 2023 and December 31, 2022, respectively. There were no other related party transactions identified during the three and nine months ended September 30, 2023 and 2022.

The Company and a Summary of _2

The Company and a Summary of its Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Nature of Operations	Nature of Operations On August 29, 2019, DermTech, Inc., formerly known as Constellation Alpha Capital Corp, (the “Company”), and DermTech Operations, Inc., formerly known as DermTech, Inc., (“DermTech Operations”), consummated the transactions contemplated by the Agreement and Plan of Merger, dated as of May 29, 2019, by and among the Company, DT Merger Sub, Inc., a wholly owned subsidiary of the Company (“Merger Sub”), and DermTech Operations. The Company refers to this agreement, as amended by that certain First Amendment to Agreement and Plan of Merger dated as of August 1, 2019, as the Merger Agreement. Pursuant to the Merger Agreement, Merger Sub merged with and into DermTech Operations, with DermTech Operations surviving as a wholly-owned subsidiary of the Company. The Company refers to this transaction as the Business Combination. In connection with and two days prior to the completion of the Business Combination, the Company domesticated from the British Virgin Islands to Delaware. DermTech Operations changed its name from DermTech, Inc. to DermTech Operations, Inc. shortly before the completion of the Business Combination. On August 29, 2019, immediately following the completion of the Business Combination, the Company changed its name from Constellation Alpha Capital Corp. to DermTech, Inc., and then effected a one-for-two reverse stock split of its common stock. The Company is a molecular diagnostic company developing and marketing its Clinical Laboratory Improvement Amendments of 1988 (“CLIA”) laboratory services including molecular pathology tests to facilitate the diagnosis of melanoma and management of skin cancer. The Company has developed a proprietary, non-invasive technique for sampling the surface layers of the skin using an adhesive patch called the DermTech Smart Sticker™ (the “Smart Sticker”) in order to collect individual biological information for commercial applications in the medical diagnostic field.
Basis of Presentation	Basis of Presentation The condensed consolidated financial statements include the accounts of DermTech, Inc. and its subsidiary. All intercompany balances and transactions among the consolidated entity have been eliminated in consolidation. These unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these unaudited condensed consolidated financial statements and accompanying notes do not include all the information and disclosures required by U.S. GAAP for complete financial statements and should be read together with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. In the opinion of management, all adjustments, which include only normal recurring adjustments considered necessary for a fair presentation, have been included. The accompanying unaudited condensed consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the unaudited condensed consolidated financial statements. As of September 30, 2023, there have been no material changes in the Company's significant accounting policies from those that were disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires that management 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 unaudited condensed consolidated financial statements and the amounts of revenues and expenses reported during the period. On an ongoing basis, management evaluates these estimates and judgments, including but not limited to those related to test revenue, stock-based compensation, short-term marketable securities, accounts receivable, accrued bonus, warrant liability, right-of-use (“ROU”) assets and the realization of deferred tax assets. Actual results may differ from those estimates.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and available-for-sale marketable securities. The Company invests its cash balances in major financial institutions that it believes have high credit quality and are insured with the Federal Deposit Insurance Corporation (“FDIC”). At times throughout the year, cash deposits might exceed FDIC insurance limits. The Company has not experienced any losses and does not believe it is exposed to any significant credit risk.
Revenue Recognition	Revenue Recognition The Company’s revenue is generated from two revenue streams: contract revenue and test revenue. The Company accounts for revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). The core principle of ASC 606 is that the Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The ASC 606 revenue recognition model consists of the following five steps: (1) identify the contracts with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The Company recognizes revenue from its test and contract services in accordance with the core principles and key aspects considered by the Company. These considerations are described in detail below, first for test revenue and then for contract revenue. Test Revenue The Company generates revenues from its DermTech Melanoma Test or “DMT” which may consist at the option of the ordering clinician of either (i) the DMT or (ii) the DMT with TERT test, which assists a clinician’s diagnosis of melanoma in patients. The Company provides prescribing clinicians with its Smart Sticker to perform non-invasive skin biopsies of clinically ambiguous pigmented skin lesions on patients. The Company also offers clinicians a telemedicine solution where they can request the Smart Sticker collection kit be sent to the patient’s home for a clinician-guided remote sample collection of ambiguous pigmented skin lesions. A patient can also initiate the process by downloading the Company’s telemedicine app, DermTech Connect, which uses store-and-forward technology to allow the patient to take a picture of a suspicious lesion with their phone and have the picture reviewed by an independent clinician who is subscribing to the DermTech Connect platform to assess the suspicious lesion, and if medically necessary, order a DMT and send a collection kit to the patient. The DermTech Connect app and telemedicine service are currently available in most states where permitted by law and applicable standards of practice guidelines. Once the sample is collected by the patient via the telemedicine solution or by a healthcare clinician in person, it is returned to the Company’s CLIA laboratory for analysis. The patient’s ribonucleic acid (“RNA”) and deoxyribonucleic acid (“DNA”) are extracted from the Smart Sticker and analyzed using gene expression and sequencing technology to determine if the pigmented skin lesion contains certain genomic features indicative of melanoma. Upon completion of the gene expression analysis, test results are provided to the clinician indicating whether the sample collected is indicative of melanoma or not. The Company periodically updates its estimate of the variable consideration recognized for previously delivered performance obligations. These updates resulted in a decrease of $37,000 and $0.9 million in revenue for the three and nine months ended September 30, 2023, respectively, and a decrease of $0.5 million and $0.5 million in revenue for the three and nine months ended September 30, 2022, respectively. These amounts included (i) adjustments for actual collections versus estimated variable consideration as of the beginning of the reporting period and (ii) cash collections and the related recognition of revenue in the current period for tests delivered in prior periods due to the release of the constraint on variable consideration, offset by (iii) reductions in revenue for the accrual for reimbursement claims and settlements. Contract Revenue Contract revenue is generated from the sale of laboratory services and Smart Stickers to third-party companies through contract research agreements. Revenues are generated from providing gene expression services to facilitate the development of drugs designed to treat dermatologic conditions. The provision of gene expression services may include sample collection using the Company’s Smart Sticker, assay development for research partners and RNA extraction, isolation, expression, amplification and detection, including data analysis and reporting. Contract revenue can be highly variable in any period as it is closely linked to the clinical trial progress of the Company’s biopharma customers. The timing of revenue recognition, billings and cash collections results in billed accounts receivable and deferred revenue on the condensed consolidated balance sheets. In a majority of historical agreements that produced contract revenue, the Company received a substantial up-front payment and additional payments upon the achievement of various milestones over the life of the agreement. This results in deferred revenue and is relieved upon delivery of the applicable Smart Stickers or RNA extraction results. Changes in accounts receivable and deferred revenue were not materially impacted by any other factors. The Company records a deferred revenue liability if a customer pays consideration before the Company transfers a good or service to the customer. Deferred revenue primarily represents upfront milestone payments, for which consideration is received prior to when goods/services are completed or delivered. Upfront fees that are estimated to be recognized as revenue more than one year from the date of collection are classified as long-term deferred revenue. Short-term deferred revenue as of September 30, 2023 and December 31, 2022 was $0.2 million and $0.1 million, respectively. As of December 31, 2022, the Company reclassified $1.0 million of short-term deferred revenue to accrued liabilities for a customer refund obligation in connection with cancellation of future services. Remaining performance obligations include deferred revenue and amounts the Company expects to receive for goods and services that have not yet been delivered or provided under existing agreements. For agreements that have an original duration of one year or
Accounts Receivable	Accounts Receivable Test Accounts Receivable Due to the nature of the Company’s test revenue, it can take a significant amount of time to collect upon billed tests. The Company prepares an analysis on reimbursement collections and data obtained for each financial reporting period to determine the amount of receivables to be recorded relating to tests performed in the applicable period. The Company generally does not perform evaluations of customers’ financial condition and generally does not require collateral. Accounts receivable are written off when all efforts to collect the balance have been exhausted. Adjustments for implicit price concessions attributable to variable consideration are incorporated into the measurement of the accounts receivable balances. The Company recorded $3.3 million and $4.1 million of net test accounts receivable as of September 30, 2023 and December 31, 2022, respectively. Contract Accounts Receivable
Net Loss Per Share	Net Loss Per Share Basic and diluted net loss per share of common stock is determined by dividing net loss applicable to holders of common stock by the weighted average number of shares of common stock outstanding during the period. Because there is a net loss attributable to holders of common stock during the periods presented, the outstanding common stock warrants, stock options and restricted stock units (“RSUs”) have been excluded from the calculation of diluted loss per share of common stock because their effect would be anti-dilutive. Therefore, the weighted average shares used to calculate both basic and diluted loss per share are the same.
Accounting Pronouncements Issued But Not Yet Effective	Accounting Pronouncements Issued But Not Yet Effective In June 2022, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03“). Under the guidance of ASU 2022-03, a contractual restriction on the sale of an equity security is not considered in measuring the security’s fair value. ASU 2022-03 also requires certain disclosures for equity securities that are subject to contractual restrictions. For public business entities, the provisions of ASU 2022-03 are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2024 and interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. The Company is still evaluating the impact of this pronouncement on the consolidated financial statements. The Company does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material impact on its condensed consolidated financial statements or disclosures.
Fair Value Measurements	The Company measures certain financial assets and liabilities at fair value on a recurring basis. 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 measurement date. The Company uses a three-tier fair value hierarchy to prioritize the inputs used in the Company’s fair value measurements. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company’s marketable debt securities are classified as available-for-sale securities based on management's intentions and are at Level 2 of the fair value hierarchy, as these investment securities are valued based upon quoted prices for identical or similar instruments in markets that are not active. The Company has classified marketable securities with original maturities of greater than one year as short-term investments based upon the Company’s ability to use all of those marketable securities to satisfy the liquidity needs of the Company’s current operations. The fair value of the Private SPAC Warrants (as defined below) was determined using the Black-Scholes-Merton valuation model and included an unobservable input: expected volatility. Expected volatility is considered by the Company to be an unobservable input and is calculated using a weighted average of historical volatilities of a combination of the Company and peer companies, due to the lack of sufficient historical data of the Company’s own stock price. The model also incorporated several observable assumptions at each valuation date, including the price of the Company’s common stock on the date of valuation, the remaining contractual term of the warrant and the risk-free interest rate over the remaining term.

The Company and a Summary of _3

The Company and a Summary of its Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Schedule of Revenues Disaggregated by Revenue Source	The following table presents the Company’s revenues disaggregated by revenue source during the three and nine months ended September 30, 2023 and 2022 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Test Revenue: DermTech Melanoma Test $ 3,692 $ 3,433 $ 10,682 $ 11,098 Contract Revenue: Adhesive patch kits 75 22 499 126 RNA extractions 141 94 157 204 Project management fees 7 24 34 96 Total revenues $ 3,915 $ 3,573 $ 11,372 $ 11,524
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	Outstanding anti-dilutive securities not included in diluted net loss per share (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Shares issuable upon exercise of common stock warrants 706 714 706 714 Shares issuable upon exercise of stock options 1,908 1,732 1,908 1,732 Shares issuable upon the release of restricted stock units 2,702 3,292 2,702 3,292 5,316 5,738 5,316 5,738

Balance Sheet Details (Tables)

Balance Sheet Details (Tables)	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Short-Term Marketable Securities	The amortized cost, gross unrealized holding gains, gross unrealized holding losses, and fair value of debt securities classified as available-for-sale securities by major security type and class of security as of September 30, 2023 were as follows (in thousands): September 30, 2023 Amortized Cost Gross Unrealized Gross Unrealized Estimated Short-term marketable securities, available-for-sale: Corporate debt securities $ 2,623 $ — $ (22) $ 2,601 U.S. government debt securities 28,234 234 (99) 28,369 Total short-term marketable securities, available-for-sale $ 30,857 $ 234 $ (121) $ 30,970 The amortized cost, gross unrealized holding gains, gross unrealized holding losses, and fair value of debt securities classified as available-for-sale securities by major security type and class of security as of December 31, 2022 were as follows (in thousands): December 31, 2022 Amortized Cost Gross Unrealized Gross Unrealized Estimated Short-term marketable securities, available-for-sale: Corporate debt securities $ 13,535 $ 2 $ (236) $ 13,301 Municipal debt securities 1,001 — (8) 993 U.S. government debt securities 34,675 10 (568) 34,117 Total short-term marketable securities, available-for-sale $ 49,211 $ 12 $ (812) $ 48,411 The following table presents gross unrealized losses and fair values for those investments that were in an unrealized loss position as of September 30, 2023 aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): September 30, 2023 Less Than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Short-term marketable securities, available-for-sale: Corporate debt securities $ 2,004 $ (15) $ 596 $ (7) $ 2,600 $ (22) U.S. government debt securities 7,768 (93) 716 (6) 8,484 (99) Total short-term marketable securities, available-for-sale $ 9,772 $ (108) $ 1,312 $ (13) $ 11,084 $ (121) The following table presents gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2022, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): December 31, 2022 Less Than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Short-term marketable securities, available-for-sale: Corporate debt securities $ 6,533 $ (105) $ 5,503 $ (131) $ 12,036 $ (236) Municipal securities — — 992 (8) 992 (8) U.S. government debt securities 10,907 (196) 19,026 (372) 29,933 (568) Total short-term marketable securities, available-for-sale $ 17,440 $ (301) $ 25,521 $ (511) $ 42,961 $ (812)
Schedule of Prepaid Expenses and PP&E	Condensed consolidated balance sheet details are as follows (in thousands): September 30, December 31, Prepaid expenses and other current assets: Prepaid expenses $ 2,398 $ 3,207 Other current assets 530 733 Total prepaid expenses and other current assets $ 2,928 $ 3,940 Property and equipment, gross: Laboratory equipment $ 6,297 $ 6,250 Computer equipment 831 872 Furniture and fixtures 1,247 913 Leasehold improvements 604 1,344 Total property and equipment, gross 8,979 9,379 Less accumulated depreciation (3,368) (3,004) Total property and equipment, net $ 5,611 $ 6,375
Schedule of Accrued Compensation and Accrued Liabilities	Condensed consolidated balance sheet details are as follows (in thousands): September 30, December 31, Accrued compensation: Accrued bonus and commissions $ 2,591 $ 3,257 Accrued salaries and wages 3,182 4,637 Total accrued compensation $ 5,773 $ 7,894 Accrued liabilities: Accrued consulting services $ 125 $ 894 Customer refund liability 980 980 Restructuring liability 65 — Other accrued expenses 776 1,590 Total accrued liabilities $ 1,946 $ 3,464

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis	The following table provides a summary of the assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2023 (in thousands): September 30, 2023 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market $ 8,883 $ — $ — $ 8,883 Corporate debt securities — 5,504 — 5,504 U.S. government debt securities — 8,689 — 8,689 Total cash equivalents 8,883 14,193 — 23,076 Marketable securities, available for sale: Corporate debt securities — 2,601 — 2,601 U.S. government debt securities — 28,369 — 28,369 Total marketable securities, available for sale — 30,970 — 30,970 Total assets measured at fair value on a recurring basis $ 8,883 $ 45,163 $ — $ 54,046 Liabilities: Warrant liability $ — $ — $ 1 $ 1 Total liabilities measured at fair value on a recurring basis $ — $ — $ 1 $ 1 The following table provides a summary of the assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2022 (in thousands): December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money Market $ 9,365 $ — $ — $ 9,365 Corporate debt securities — 7,374 — 7,374 U.S. government debt securities — 18,396 — 18,396 Total cash equivalents 9,365 25,770 — 35,135 Marketable securities, available for sale: Corporate debt — 13,301 — 13,301 Municipal debt securities — 993 — 993 U.S. government debt securities — 34,117 — 34,117 Total marketable securities, available for sale — 48,411 — 48,411 Total assets measured at fair value on a recurring basis $ 9,365 $ 74,181 $ — $ 83,546 Liabilities: Warrant liability $ — $ — $ 5 $ 5 Total liabilities measured at fair value on a recurring basis $ — $ — $ 5 $ 5
Summary of Assumptions Used to Calculate Fair Value of Warrant Liability Using Black-Scholes-Merton Valuation Model	The following assumptions were used to calculate the fair value of the Company’s warrant liability using the Black-Scholes-Merton valuation model: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Assumed risk-free interest rate 5.46% 4.22% 4.35% - 5.46% 2.37% - 4.22% Assumed volatility 134.91% 118.13% 123.28% - 134.91% 92.77% - 118.13% Expected term 0.92 years 1.92 years 0.92 - 1.42 years 1.92 - 2.42 years Expected dividend yield — — — —
Summary of Changes in Fair Value of Level 3 Liabilities	The following table summarizes the changes in the fair value of the Company’s Level 3 liabilities (in thousands): Balance as of December 31, 2022 $ 5 Change in fair value of warrant liability 7 Balance as of March 31, 2023 $ 12 Change in fair value of warrant liability (6) Balance as of June 30, 2023 $ 6 Change in fair value of warrant liability (5) Balance as of September 30, 2023 $ 1

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2023
Stockholders' Equity Note [Abstract]
Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award	Stock-based compensation expense for employee options, RSUs, the purchase rights issued under the DermTech, Inc. 2020 Employee Stock Purchase Plan, as amended (the “2020 ESPP”), and consultant options was recorded in the condensed consolidated statements of operations as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of revenue $ 383 $ 353 $ 1,230 $ 986 Sales and marketing 642 1,294 3,698 3,822 Research and development 701 1,074 1,938 2,899 General and administrative 1,437 2,215 8,548 5,960 Total stock-based compensation $ 3,163 $ 4,936 $ 15,414 $ 13,667

The Company and a Summary of _4

The Company and a Summary of its Significant Accounting Policies - Additional Information (Details)		3 Months Ended		9 Months Ended
	Aug. 29, 2019	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) revenueStream	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
The Company and Summary of its Significant Accounting Policies [Line Items]
Retained earnings (accumulated deficit)		$ (404,844,000)		$ (404,844,000)		$ (323,047,000)
Cash and cash equivalents		37,230,000	$ 95,492,000	37,230,000	$ 95,492,000	77,757,000
Short-term marketable securities		30,970,000		$ 30,970,000		48,411,000
Conversion ratio of reverse stock split	0.5
Number of revenue streams (in number of streams) | revenueStream				2
Increase (decrease) in revenue		(37,000)	$ (500,000)	$ (900,000)	$ (500,000)
Short term deferred revenue		236,000		236,000		109,000
Accrued liabilities						1,000,000
Remaining performance obligation, estimated revenue expected to be recognized		0		0
Accounts receivable		3,605,000		3,605,000		4,172,000
Contract revenue
The Company and Summary of its Significant Accounting Policies [Line Items]
Accounts receivable		300,000		300,000		100,000
Test
The Company and Summary of its Significant Accounting Policies [Line Items]
Accounts receivable gross		$ 3,300,000		$ 3,300,000		$ 4,100,000

The Company and a Summary of _5

The Company and a Summary of its Significant Accounting Policies - Schedule of Revenues Disaggregated by Revenue Source (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation Of Revenue [Line Items]
Total revenues	$ 3,915	$ 3,573	$ 11,372	$ 11,524
DermTech Melanoma Test
Disaggregation Of Revenue [Line Items]
Total revenues	3,692	3,433	10,682	11,098
Adhesive patch kits
Disaggregation Of Revenue [Line Items]
Total revenues	75	22	499	126
RNA extractions
Disaggregation Of Revenue [Line Items]
Total revenues	141	94	157	204
Project management fees
Disaggregation Of Revenue [Line Items]
Total revenues	$ 7	$ 24	$ 34	$ 96

The Company and a Summary of _6

The Company and a Summary of its Significant Accounting Policies - Schedule of Anti-dilutive Securities (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive equity instruments excluded from diluted net loss per share of common stock	5,316	5,738	5,316	5,738
Common Stock Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive equity instruments excluded from diluted net loss per share of common stock	706	714	706	714
Stock option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive equity instruments excluded from diluted net loss per share of common stock	1,908	1,732	1,908	1,732
Restricted Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive equity instruments excluded from diluted net loss per share of common stock	2,702	3,292	2,702	3,292

Balance Sheet Details - Schedul

Balance Sheet Details - Schedule of Short-Term Marketable Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	$ 30,857	$ 49,211
Gross Unrealized Gains	234	12
Gross Unrealized Losses	(121)	(812)
Estimated Market Value	30,970	48,411
Corporate debt securities
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	2,623	13,535
Gross Unrealized Gains	0	2
Gross Unrealized Losses	(22)	(236)
Estimated Market Value	2,601	13,301
Municipal debt securities
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost		1,001
Gross Unrealized Gains		0
Gross Unrealized Losses		(8)
Estimated Market Value		993
U.S. government debt securities
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	28,234	34,675
Gross Unrealized Gains	234	10
Gross Unrealized Losses	(99)	(568)
Estimated Market Value	$ 28,369	$ 34,117

Balance Sheet Details - Additio

Balance Sheet Details - Additional Information (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Estimated market value of debt securities with contractual maturities of less than 12 months	$ 29,700,000	$ 40,200,000
Estimated market value of remaining debt securities with contractual maturities of up to 18 months	1,300,000
Estimated market value of remaining debt securities with contractual maturities of up to 23 months		8,200,000
Credit losses	$ 0	$ 0

Balance Sheet Details - Continu

Balance Sheet Details - Continuous Loss Position (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Debt Securities, Available-for-Sale [Line Items]
AFS, Less than 12 months, Fair Value	$ 9,772	$ 17,440
AFS, Less than 12 months, Gross Unrealized Loss	(108)	(301)
AFS, Greater than 12 months, Fair Value	1,312	25,521
AFS, Greater than 12 months, Gross Unrealized Loss	(13)	(511)
AFS, Total, Fair Value	11,084	42,961
AFS, Total, Gross Unrealized Loss	(121)	(812)
Corporate debt securities
Debt Securities, Available-for-Sale [Line Items]
AFS, Less than 12 months, Fair Value	2,004	6,533
AFS, Less than 12 months, Gross Unrealized Loss	(15)	(105)
AFS, Greater than 12 months, Fair Value	596	5,503
AFS, Greater than 12 months, Gross Unrealized Loss	(7)	(131)
AFS, Total, Fair Value	2,600	12,036
AFS, Total, Gross Unrealized Loss	(22)	(236)
Municipal debt securities
Debt Securities, Available-for-Sale [Line Items]
AFS, Less than 12 months, Fair Value		0
AFS, Less than 12 months, Gross Unrealized Loss		0
AFS, Greater than 12 months, Fair Value		992
AFS, Greater than 12 months, Gross Unrealized Loss		(8)
AFS, Total, Fair Value		992
AFS, Total, Gross Unrealized Loss		(8)
U.S. government debt securities
Debt Securities, Available-for-Sale [Line Items]
AFS, Less than 12 months, Fair Value	7,768	10,907
AFS, Less than 12 months, Gross Unrealized Loss	(93)	(196)
AFS, Greater than 12 months, Fair Value	716	19,026
AFS, Greater than 12 months, Gross Unrealized Loss	(6)	(372)
AFS, Total, Fair Value	8,484	29,933
AFS, Total, Gross Unrealized Loss	$ (99)	$ (568)

Balance Sheet Details - Sched_2

Balance Sheet Details - Schedule of Prepaid Expenses and PP&E (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Prepaid expenses and other current assets:
Prepaid expenses	$ 2,398	$ 3,207
Other current assets	530	733
Total prepaid expenses and other current assets	2,928	3,940
Property and equipment, gross:
Laboratory equipment	6,297	6,250
Computer equipment	831	872
Furniture and fixtures	1,247	913
Leasehold improvements	604	1,344
Total property and equipment, gross	8,979	9,379
Less accumulated depreciation	(3,368)	(3,004)
Total property and equipment, net	$ 5,611	$ 6,375

Balance Sheet Details - Sched_3

Balance Sheet Details - Schedule of Accrued Compensation and Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Accrued compensation:
Accrued bonus and commissions	$ 2,591	$ 3,257
Accrued salaries and wages	3,182	4,637
Total accrued compensation	5,773	7,894
Accrued liabilities:
Accrued consulting services	125	894
Customer refund liability	980	980
Restructuring liability	65	0
Other accrued expenses	776	1,590
Total accrued liabilities	$ 1,946	$ 3,464

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Marketable securities, available for sale:
Total marketable securities, available for sale	$ 30,970	$ 48,411
Fair Value, Recurring
Assets:
Cash equivalents:	23,076	35,135
Marketable securities, available for sale:
Total marketable securities, available for sale	30,970	48,411
Total assets measured at fair value on a recurring basis	54,046	83,546
Liabilities:
Warrant liability	1	5
Total liabilities measured at fair value on a recurring basis	1	5
Fair Value, Recurring | Money market
Assets:
Cash equivalents:	8,883	9,365
Fair Value, Recurring | Corporate debt securities
Assets:
Cash equivalents:	5,504	7,374
Fair Value, Recurring | U.S. government debt securities
Assets:
Cash equivalents:	8,689	18,396
Fair Value, Recurring | Level 1
Assets:
Cash equivalents:	8,883	9,365
Marketable securities, available for sale:
Total marketable securities, available for sale	0	0
Total assets measured at fair value on a recurring basis	8,883	9,365
Liabilities:
Warrant liability	0	0
Total liabilities measured at fair value on a recurring basis	0	0
Fair Value, Recurring | Level 1 | Money market
Assets:
Cash equivalents:	8,883	9,365
Fair Value, Recurring | Level 1 | Corporate debt securities
Assets:
Cash equivalents:	0	0
Fair Value, Recurring | Level 1 | U.S. government debt securities
Assets:
Cash equivalents:	0	0
Fair Value, Recurring | Level 2
Assets:
Cash equivalents:	14,193	25,770
Marketable securities, available for sale:
Total marketable securities, available for sale	30,970	48,411
Total assets measured at fair value on a recurring basis	45,163	74,181
Liabilities:
Warrant liability	0	0
Total liabilities measured at fair value on a recurring basis	0	0
Fair Value, Recurring | Level 2 | Money market
Assets:
Cash equivalents:	0	0
Fair Value, Recurring | Level 2 | Corporate debt securities
Assets:
Cash equivalents:	5,504	7,374
Fair Value, Recurring | Level 2 | U.S. government debt securities
Assets:
Cash equivalents:	8,689	18,396
Fair Value, Recurring | Level 3
Assets:
Cash equivalents:	0	0
Marketable securities, available for sale:
Total marketable securities, available for sale	0	0
Total assets measured at fair value on a recurring basis	0	0
Liabilities:
Warrant liability	1	5
Total liabilities measured at fair value on a recurring basis	1	5
Fair Value, Recurring | Level 3 | Money market
Assets:
Cash equivalents:	0	0
Fair Value, Recurring | Level 3 | Corporate debt securities
Assets:
Cash equivalents:	0	0
Fair Value, Recurring | Level 3 | U.S. government debt securities
Assets:
Cash equivalents:	0	0
Corporate debt securities
Marketable securities, available for sale:
Total marketable securities, available for sale	2,601	13,301
Corporate debt securities | Fair Value, Recurring
Marketable securities, available for sale:
Total marketable securities, available for sale	2,601	13,301
Corporate debt securities | Fair Value, Recurring | Level 1
Marketable securities, available for sale:
Total marketable securities, available for sale	0	0
Corporate debt securities | Fair Value, Recurring | Level 2
Marketable securities, available for sale:
Total marketable securities, available for sale	2,601	13,301
Corporate debt securities | Fair Value, Recurring | Level 3
Marketable securities, available for sale:
Total marketable securities, available for sale	0	0
Municipal debt securities
Marketable securities, available for sale:
Total marketable securities, available for sale		993
Municipal debt securities | Fair Value, Recurring
Marketable securities, available for sale:
Total marketable securities, available for sale		993
Municipal debt securities | Fair Value, Recurring | Level 1
Marketable securities, available for sale:
Total marketable securities, available for sale		0
Municipal debt securities | Fair Value, Recurring | Level 2
Marketable securities, available for sale:
Total marketable securities, available for sale		993
Municipal debt securities | Fair Value, Recurring | Level 3
Marketable securities, available for sale:
Total marketable securities, available for sale		0
U.S. government debt securities
Marketable securities, available for sale:
Total marketable securities, available for sale	28,369	34,117
U.S. government debt securities | Fair Value, Recurring
Marketable securities, available for sale:
Total marketable securities, available for sale	28,369	34,117
U.S. government debt securities | Fair Value, Recurring | Level 1
Marketable securities, available for sale:
Total marketable securities, available for sale	0	0
U.S. government debt securities | Fair Value, Recurring | Level 2
Marketable securities, available for sale:
Total marketable securities, available for sale	28,369	34,117
U.S. government debt securities | Fair Value, Recurring | Level 3
Marketable securities, available for sale:
Total marketable securities, available for sale	$ 0	$ 0

Fair Value Measurements - Assum

Fair Value Measurements - Assumptions Used to Determine Fair Value of Warrant Liability (Details) - Warranty liability	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Assumed risk-free interest rate	5.46%	4.22%
Assumed risk-free interest rate, minimum			4.35%	2.37%
Assumed risk-free interest rate, maximum			5.46%	4.22%
Assumed volatility	134.91%	118.13%
Assumed volatility, minimum			123.28%	92.77%
Assumed volatility, maximum			134.91%	118.13%
Expected term	11 months 1 day	1 year 11 months 1 day
Expected dividend yield	0%	0%	0%	0%
Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term			11 months 1 day	1 year 11 months 1 day
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term			1 year 5 months 1 day	2 years 5 months 1 day

Fair Value Measurements - Sum_2

Fair Value Measurements - Summary of Changes in Fair Value of Level 3 Liabilities (Details) - Level 3 - Warrant Liability - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 6	$ 12	$ 5
Change in fair value of warrant liability	(5)	(6)	7
Ending balance	$ 1	$ 6	$ 12

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Restricted Cash | Level 1 | Letter of Credit
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Letters of credit maintained	$ 3.5	$ 3.5

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details)

3 Months Ended

9 Months Ended

12 Months Ended

14 Months Ended

24 Months Ended

36 Months Ended

Jan. 01, 2024

Aug. 08, 2022 USD ($)

Nov. 10, 2020 USD ($)

Jun. 23, 2017 shares

Sep. 30, 2023 USD ($) $ / shares shares

Jun. 30, 2023 USD ($) shares

Mar. 31, 2023 USD ($) shares

Sep. 30, 2023 USD ($) warrant $ / shares shares

Sep. 30, 2022 USD ($)

Dec. 31, 2022 shares

Dec. 31, 2021 USD ($) shares

Dec. 31, 2020 $ / shares shares

Dec. 31, 2021 USD ($) $ / shares shares

Dec. 31, 2016 $ / shares shares

Dec. 31, 2018 $ / shares shares

Jun. 02, 2023 shares

Jun. 01, 2023 shares

Class of Stock [Line Items]

Common stock, shares authorized (in shares)

100,000,000

100,000,000

50,000,000

100,000,000

50,000,000

Issuance of preferred stock, total offering amount | $

$ 483,000

$ 4,495,000

$ 270,000

Proceeds from issuance of common stock in connection with at-the-market offering, net | $

$ 5,248,000

$ 0

Warrants expiration period

5 years

5 years

Total proceeds from exercise of public warrants | $

$ 0

$ 22,000

Compensation cost related to non-vested awards not yet recognized | $

$ 22,500,000

$ 22,500,000

Weighted average term expected to be recognized

2 years 5 months 12 days

Accelerated expense | $

0

$ 3,000,000

Cowen and Company LLC

Class of Stock [Line Items]

Issuance of preferred stock, total offering amount | $

$ 75,000,000

Aggregate amount of stock remaining | $

$ 74,700,000

Forecast

Class of Stock [Line Items]

Additional award vesting period (in months)

10 months

Forecast | Minimum

Class of Stock [Line Items]

Additional exercise period of stock options (in months)

90 days

Forecast | Maximum

Class of Stock [Line Items]

Additional exercise period of stock options (in months)

12 months

At The Market Offering - 2020 Sales Agreement | Cowen and Company LLC

Class of Stock [Line Items]

Issuance of preferred stock, total offering amount | $

$ 50,000,000

Issuance of common stock, net of issuance costs shares (in shares)

172,000

2,038,661

0

1,482,343

Weighted average purchase price per share (in usd per share) | $ / shares

$ 2.59

$ 2.68

$ 30.05

Issuance costs | $

$ 1,600,000

Gross proceeds from issuance of common stock | $

$ 400,000

$ 5,500,000

$ 42,900,000

Decrease in issuance costs | $

300,000

Proceeds from issuance of common stock in connection with at-the-market offering, net | $

$ 400,000

$ 5,200,000

At The Market Offering - 2022 Sales Agreement | Cowen and Company LLC

Class of Stock [Line Items]

Issuance of common stock, net of issuance costs shares (in shares)

130,598

Weighted average purchase price per share (in usd per share) | $ / shares

$ 2.49

Issuance costs | $

$ 200,000

Gross proceeds from issuance of common stock | $

300,000

Proceeds from issuance of common stock in connection with at-the-market offering, net | $

$ 100,000

SPAC Warrants

Class of Stock [Line Items]

Warrants issued to purchase common stock (in shares)

14,936,250

Number of warrants entitle holder to purchase one share | warrant

4

Total number exercised of public warrants (in shares)

12,120,397

12,120,397

Common shares issued upon exercise of warrants (in shares)

3,030,092

Total proceeds from exercise of public warrants | $

$ 69,700,000

Warrants outstanding (in shares)

2,815,853

2,815,853

2,815,853

Public SPAC Warrants

Class of Stock [Line Items]

Warrants issued to purchase common stock (in shares)

14,375,000

Private SPAC Warrants

Class of Stock [Line Items]

Warrants issued to purchase common stock (in shares)

561,250

Warrants outstanding (in shares)

80,350

80,350

80,350

Placement Agent Warrants

Class of Stock [Line Items]

Warrants issued to purchase common stock (in shares)

168,522

72,658

Warrants expiration period

7 years

7 years

Warrants outstanding (in shares)

1,656

1,656

4,510

Placement Agent Warrants | 2018 Convertible Bridge Notes

Class of Stock [Line Items]

Warrants issued to purchase common stock (in shares)

15,724

Warrants expiration period

7 years

Common stock

Class of Stock [Line Items]

Issuance of common stock, net of issuance costs shares (in shares)

302,598

1,759,210

107,451

Number of shares issued for each warrant (in shares)

0.25

0.25

Common stock | SPAC Warrants

Class of Stock [Line Items]

Exercise price of warrant (in usd per share) | $ / shares

$ 23

$ 23

Number of shares issued for each warrant (in shares)

0.25

0.25

Common stock | Placement Agent Warrants

Class of Stock [Line Items]

Exercise price of warrant (in usd per share) | $ / shares

$ 8.68

$ 9.54

Number of shares issued for each warrant (in shares)

1

1

Common stock | Placement Agent Warrants | 2018 Convertible Bridge Notes

Class of Stock [Line Items]

Exercise price of warrant (in usd per share) | $ / shares

$ 9.54

Number of shares issued for each warrant (in shares)

1

Stockholders' Equity - Share-Ba

Stockholders' Equity - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	$ 3,163	$ 4,936	$ 15,414	$ 13,667
Cost of revenue
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	383	353	1,230	986
Sales and marketing
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	642	1,294	3,698	3,822
Research and development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	701	1,074	1,938	2,899
General and administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	$ 1,437	$ 2,215	$ 8,548	$ 5,960

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($)		3 Months Ended	9 Months Ended
	Jun. 26, 2023	Sep. 30, 2023	Sep. 30, 2023	Dec. 31, 2022
Commitments And Contingencies [Line Items]
Restructuring charges		$ 0
Restructuring liability		65,000	$ 65,000	$ 0
Restructuring Plan
Commitments And Contingencies [Line Items]
Percent of workforce being reduced	15%
Restructuring charges		2,100,000	2,100,000
Severance costs			1,800,000
Accelerated depreciation			300,000
Restructuring liability		$ 100,000	$ 100,000

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Related Party Transaction [Line Items]
Sales and marketing	$ 8,123,000	$ 14,632,000	$ 36,573,000	$ 45,076,000
Accounts payable	1,703,000		1,703,000		$ 2,419,000
Related Party
Related Party Transaction [Line Items]
Sales and marketing	2,000	$ 1,100,000	900,000	$ 2,800,000
Accounts payable	$ 0		$ 0		$ 300,000