Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 30, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | FLGT | |
Entity Registrant Name | FULGENT GENETICS, INC. | |
Entity Central Index Key | 0001674930 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 30,296,682 | |
Entity File Number | 001-37894 | |
Entity Tax Identification Number | 81-2621304 | |
Entity Address, Address Line One | 4399 Santa Anita Avenue | |
Entity Address, City or Town | El Monte | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91731 | |
City Area Code | 626 | |
Local Phone Number | 350-0537 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 65,111 | $ 97,473 |
Marketable securities | 246,595 | 326,681 |
Trade accounts receivable, net of allowance for credit losses of $25,307 as of June 30, 2024, and $25,226 as of December 31, 2023 | 56,573 | 51,132 |
Other current assets | 30,825 | 32,559 |
Total current assets | 399,104 | 507,845 |
Marketable securities, long-term | 526,163 | 423,571 |
Intangible assets, net | 138,973 | 143,053 |
Fixed assets, net | 93,368 | 83,464 |
Goodwill, net | 22,055 | 22,055 |
Redeemable preferred stock investment | 20,438 | 20,438 |
Other long-term assets | 32,138 | 34,902 |
Total assets | 1,232,239 | 1,235,328 |
Current liabilities | ||
Accounts payable | 19,873 | 15,360 |
Accrued liabilities | 26,425 | 30,737 |
Customer deposit | 26,297 | 22,700 |
Contract liabilities | 2,744 | 2,874 |
Notes payable, current portion | 412 | 1,183 |
Other current liabilities | 164 | |
Total current liabilities | 75,751 | 73,018 |
Deferred tax liabilities | 6,948 | 7,962 |
Unrecognized tax benefits | 6,295 | 5,978 |
Other long-term liabilities | 14,397 | 15,084 |
Total liabilities | 103,391 | 102,042 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity | ||
Common stock, $0.0001 par value per share, 50,000 shares authorized, 33,036 shares issued and 30,262 shares outstanding as of June 30, 2024, and 32,416 shares issued and 29,653 shares outstanding as of December 31, 2023 | 3 | 3 |
Preferred stock, $0.0001 par value per share, 1,000 shares authorized, no shares issued or outstanding, as of June 30, 2024, and December 31, 2023 | ||
Additional paid-in capital | 522,420 | 501,718 |
Accumulated other comprehensive (loss) income | (877) | 1,205 |
Retained earnings | 611,003 | 633,175 |
Total Fulgent stockholders' equity | 1,132,549 | 1,136,101 |
Noncontrolling interest | (3,701) | (2,815) |
Total stockholders’ equity | 1,128,848 | 1,133,286 |
Total liabilities and stockholders’ equity | $ 1,232,239 | $ 1,235,328 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 25,307 | $ 25,226 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 33,036,000 | 32,416,000 |
Common stock, shares outstanding | 30,262,000 | 29,653,000 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Revenue | $ 71,028 | $ 67,853 | $ 135,513 | $ 134,021 |
Cost of revenue | 44,537 | 47,281 | 86,918 | 94,638 |
Gross profit | 26,491 | 20,572 | 48,595 | 39,383 |
Operating expenses: | ||||
Research and development | 13,486 | 9,692 | 24,920 | 19,474 |
Selling and marketing | 8,595 | 10,723 | 17,584 | 20,806 |
General and administrative | 21,326 | 17,993 | 42,815 | 39,795 |
Amortization of intangible assets | 1,990 | 1,962 | 3,980 | 3,930 |
Total operating expenses | 45,397 | 40,370 | 89,299 | 84,005 |
Operating loss | (18,906) | (19,798) | (40,704) | (44,622) |
Interest and other income, net | 7,692 | 5,098 | 15,317 | 8,873 |
Loss before income taxes | (11,214) | (14,700) | (25,387) | (35,749) |
Benefit from income taxes | (2,124) | (3,110) | (2,451) | (8,310) |
Net loss from consolidated operations | (9,090) | (11,590) | (22,936) | (27,439) |
Net loss attributable to noncontrolling interests | 380 | 361 | 764 | 870 |
Net loss attributable to Fulgent | $ (8,710) | $ (11,229) | $ (22,172) | $ (26,569) |
Net loss attributable to Fulgent | ||||
Basic | $ (0.29) | $ (0.38) | $ (0.74) | $ (0.9) |
Diluted | $ (0.29) | $ (0.38) | $ (0.74) | $ (0.9) |
Weighted-average common shares: | ||||
Basic | 30,098 | 29,813 | 29,933 | 29,675 |
Diluted | 30,098 | 29,813 | 29,933 | 29,675 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss from consolidated operations | $ (9,090) | $ (11,590) | $ (22,936) | $ (27,439) |
Other comprehensive income (loss): | ||||
Foreign currency translation loss | (111) | (1,965) | (444) | (1,797) |
Net gain (loss) on available-for-sale debt securities, net of tax | 312 | (2,132) | (1,760) | 3,197 |
Comprehensive loss from consolidated operations | (8,889) | (15,687) | (25,140) | (26,039) |
Net loss attributable to noncontrolling interests | 380 | 361 | 764 | 870 |
Foreign currency translation loss (gain) attributable to noncontrolling interest | 24 | 547 | 122 | (1,243) |
Comprehensive loss (income) attributable to noncontrolling interest | 404 | 908 | 886 | (373) |
Comprehensive loss attributable to Fulgent | $ (8,485) | $ (14,779) | $ (24,254) | $ (26,412) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) $ in Thousands | Total | Stockholders' Equity | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Fulgent Stockholders' Equity | Noncontrolling Interest | ||
Beginning Balance at Dec. 31, 2022 | $ 1,269,875 | $ 3 | $ 486,585 | $ (20,903) | $ 801,000 | $ 1,266,685 | $ 3,190 | ||
Beginning Balance, Shares at Dec. 31, 2022 | [1] | 29,438,000 | |||||||
Equity-based compensation | 10,265 | 10,265 | 10,265 | ||||||
Restricted stock awards, Shares | [1] | 280,000 | |||||||
Common stock withholding for employee tax obligations | (869) | (869) | (869) | ||||||
Common stock withholding for employee tax obligations, Shares | [1] | (26,000) | |||||||
Other comprehensive income (loss) | 5,497 | 3,707 | 3,707 | 1,790 | |||||
Net loss | (15,849) | (15,340) | (15,340) | (509) | |||||
Ending Balance at Mar. 31, 2023 | 1,268,919 | $ 3 | 495,981 | (17,196) | 785,660 | 1,264,448 | 4,471 | ||
Ending Balance, Shares at Mar. 31, 2023 | [1] | 29,692,000 | |||||||
Beginning Balance at Dec. 31, 2022 | $ 1,269,875 | $ 3 | 486,585 | (20,903) | 801,000 | 1,266,685 | 3,190 | ||
Beginning Balance, Shares at Dec. 31, 2022 | [1] | 29,438,000 | |||||||
Repurchase of common stock, Shares | 0 | ||||||||
Net loss | $ (27,439) | ||||||||
Ending Balance at Jun. 30, 2023 | 1,263,326 | $ 3 | 506,075 | (20,746) | 774,431 | 1,259,763 | 3,563 | ||
Ending Balance, Shares at Jun. 30, 2023 | [1] | 29,917,000 | |||||||
Beginning Balance at Mar. 31, 2023 | 1,268,919 | $ 3 | 495,981 | (17,196) | 785,660 | 1,264,448 | 4,471 | ||
Beginning Balance, Shares at Mar. 31, 2023 | [1] | 29,692,000 | |||||||
Equity-based compensation | 10,323 | 10,323 | 10,323 | ||||||
Exercise of common stock options | 3 | 3 | 3 | ||||||
Exercise of common stock options, Shares | [1] | 8,000 | |||||||
Restricted stock awards, Shares | [1] | 225,000 | |||||||
Common stock withholding for employee tax obligations | $ (232) | (232) | (232) | ||||||
Common stock withholding for employee tax obligations, Shares | [1] | (8,000) | |||||||
Repurchase of common stock, Shares | 0 | ||||||||
Other comprehensive income (loss) | $ (4,097) | (3,550) | (3,550) | (547) | |||||
Net loss | (11,590) | (11,229) | (11,229) | (361) | |||||
Ending Balance at Jun. 30, 2023 | 1,263,326 | $ 3 | 506,075 | (20,746) | 774,431 | 1,259,763 | 3,563 | ||
Ending Balance, Shares at Jun. 30, 2023 | [1] | 29,917,000 | |||||||
Beginning Balance at Dec. 31, 2023 | $ 1,133,286 | $ 3 | 501,718 | 1,205 | 633,175 | 1,136,101 | (2,815) | ||
Beginning Balance, Shares at Dec. 31, 2023 | 32,416,000 | 29,653,000 | [2] | ||||||
Equity-based compensation | $ 11,518 | 11,518 | 11,518 | ||||||
Exercise of common stock options, Shares | [2] | 1,000 | |||||||
Restricted stock awards, Shares | [2] | 315,000 | |||||||
Common stock withholding for employee tax obligations | (1,682) | (1,682) | (1,682) | ||||||
Common stock withholding for employee tax obligations, Shares | [2] | (69,000) | |||||||
Repurchase of common stock | (225) | (225) | (225) | ||||||
Repurchase of common stock, Shares | [2] | (10,000) | |||||||
Other comprehensive income (loss) | (2,405) | (2,307) | (2,307) | (98) | |||||
Net loss | (13,846) | (13,462) | (13,462) | (384) | |||||
Ending Balance at Mar. 31, 2024 | 1,126,646 | $ 3 | 511,329 | (1,102) | 619,713 | 1,129,943 | (3,297) | ||
Ending Balance, Shares at Mar. 31, 2024 | [2] | 29,890,000 | |||||||
Beginning Balance at Dec. 31, 2023 | $ 1,133,286 | $ 3 | 501,718 | 1,205 | 633,175 | 1,136,101 | (2,815) | ||
Beginning Balance, Shares at Dec. 31, 2023 | 32,416,000 | 29,653,000 | [2] | ||||||
Repurchase of common stock | $ (200) | ||||||||
Repurchase of common stock, Shares | (10,000) | ||||||||
Net loss | $ (22,936) | ||||||||
Ending Balance at Jun. 30, 2024 | $ 1,128,848 | $ 3 | 522,420 | (877) | 611,003 | 1,132,549 | (3,701) | ||
Ending Balance, Shares at Jun. 30, 2024 | 33,036,000 | 30,262,000 | [2] | ||||||
Beginning Balance at Mar. 31, 2024 | $ 1,126,646 | $ 3 | 511,329 | (1,102) | 619,713 | 1,129,943 | (3,297) | ||
Beginning Balance, Shares at Mar. 31, 2024 | [2] | 29,890,000 | |||||||
Equity-based compensation | 11,635 | 11,635 | 11,635 | ||||||
Restricted stock awards, Shares | [2] | 212,000 | |||||||
Common stock withholding for employee tax obligations | (544) | (544) | (544) | ||||||
Common stock withholding for employee tax obligations, Shares | [2] | (26,000) | |||||||
Repurchase of common stock | $ (200) | ||||||||
Repurchase of common stock, Shares | 0 | ||||||||
Common stock issued in a business combination, Shares | [2] | 186,000 | |||||||
Other comprehensive income (loss) | $ 201 | 225 | 225 | (24) | |||||
Net loss | (9,090) | (8,710) | (8,710) | (380) | |||||
Ending Balance at Jun. 30, 2024 | $ 1,128,848 | $ 3 | $ 522,420 | $ (877) | $ 611,003 | $ 1,132,549 | $ (3,701) | ||
Ending Balance, Shares at Jun. 30, 2024 | 33,036,000 | 30,262,000 | [2] | ||||||
[1] As of June 30, 2023, 371,006 shares of the Company's common stock were not issued and were held back by the Company as partial security for the indemnification obligations in connection with the business combination of Fulgent Pharma, in 2022. 185,503 shares of the Company’s common stock were issued upon expiration of these hold back provisions in November 2023, and 185,503 shares were issued upon expiration of these hold back provisions in May 2024. 185,503 shares of the Company's common stock were issued in May 2024 by the Company upon expiration of hold back provisions in connection with the business combination of Fulgent Pharma Holdings, Inc., or Fulgent Pharma, in 2022. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (unaudited) (Parenthetical) - shares shares in Thousands | Jun. 30, 2024 | May 31, 2024 | Nov. 30, 2023 | Jun. 30, 2023 |
Common stock shares not issued and holdback as partial security for indemnification obligations | 371,006 | |||
Common stock shares issued upon expiration of hold back provisions | 185,503 | 185,503 | 185,503 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flow from operating activities: | ||
Net loss from consolidated operations | $ (22,936) | $ (27,439) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Equity-based compensation | 23,153 | 20,588 |
Depreciation and amortization | 12,816 | 13,191 |
Adjustment for credit losses | (4,157) | (1,984) |
Noncash lease expense | 2,679 | 3,268 |
Loss on disposal of fixed asset | 172 | 11 |
Amortization of discount of marketable securities | (2,670) | (1,192) |
Deferred taxes | (1,014) | (8,418) |
Unrecognized tax benefits | 317 | |
Net realized loss on marketable securities | 871 | |
Other | (5) | 20 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (1,393) | 19,658 |
Other current and long-term assets | 4,097 | (3,764) |
Accounts payable | 1,596 | (4,447) |
Contract liabilities | (130) | (598) |
Customer deposit | 3,604 | 3,599 |
Accrued liabilities and other liabilities | (2,762) | (7,519) |
Operating lease liabilities | (2,687) | (3,144) |
Net cash provided by operating activities | 11,551 | 1,830 |
Cash flow from investing activities: | ||
Purchase of marketable securities | (258,829) | (250,537) |
Purchases of fixed assets | (17,000) | (14,178) |
Maturities of marketable securities | 160,073 | 258,847 |
Proceeds from sale of marketable securities | 75,599 | |
Proceeds from sale of fixed assets | 275 | 418 |
Net cash used in investing activities | (39,882) | (5,450) |
Cash flow from financing activities: | ||
Common stock withholding for employee tax obligations | (2,226) | (1,101) |
Repayment of notes payable | (1,229) | (799) |
Principal paid for finance lease | (273) | (463) |
Repurchase of common stock | (225) | |
Repayment of investment margin loan | (15,000) | |
Proceeds from exercise of stock options | 3 | |
Net cash used in financing activities | (3,953) | (17,360) |
Effect of exchange rate changes on cash and cash equivalents | (78) | (178) |
Net decrease in cash and cash equivalents | (32,362) | (21,158) |
Cash and cash equivalents at beginning of period | 97,473 | 79,506 |
Cash and cash equivalents at end of period | 65,111 | 58,348 |
Supplemental disclosures of cash flow information: | ||
Income taxes paid | 1,903 | 2,636 |
Interest Paid | 452 | 919 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Purchases of fixed assets in accounts payable | 4,783 | 3,725 |
Operating lease right-of-use assets obtained in exchange for lease liabilities | 1,146 | 2,661 |
Operating lease right-of-use assets reduced due to lease modification and termination | $ 57 | |
Finance lease right-of-use assets reduced due to lease modification and termination | $ 696 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ (8,710) | $ (11,229) | $ (22,172) | $ (26,569) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | During the three and six months ended June 30, 2024 , none of our directors or officers adopted or terminated “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K. |
Director And Officer [Member] | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Overview and Basis of Presentat
Overview and Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview and Basis of Presentation | Note 1. Overview and Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP. These financial statements include the assets, liabilities, revenues and expenses of all subsidiaries and entities in which the Company has a controlling financial interest or is deemed to be the primary beneficiary. In determining whether the Company is the primary beneficiary of an entity, the Company applies a qualitative approach that determines whether it has both (i) the power to direct the economically significant activities of the entity and (ii) the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to that entity. The Company uses the equity method to account for its investments in entities that it does not control, but in which it has the ability to exercise significant influence over operating and financial policies. All intercompany accounts and transactions are eliminated from the accompanying condensed consolidated financial statements. Nature of the Business Fulgent Genetics, Inc., together with its subsidiaries and affiliated professional corporations, or PCs (collectively referred to as the Company, unless otherwise noted or the context otherwise requires), is a technology-based company with a well-established laboratory services business and a therapeutic development business. Its laboratory services business – to which the Company formerly referred as its clinical diagnostic business, includes technical laboratory services and professional interpretation of laboratory results by licensed physicians. Its therapeutic development business is focused on developing drug candidates for treating a broad range of cancers using a novel nanoencapsulation and targeted therapy platform designed to improve the therapeutic window and pharmacokinetic profile of new and existing cancer drugs. Unaudited Interim Financial Information The accompanying unaudited interim condensed consolidated financial statements have been prepared on the same basis as the Company’s audited consolidated financial statements as of and for the fiscal year ended December 31, 2023, which are included in the Company’s annual report on Form 10-K filed with the Securities and Exchange Commission, or SEC, on February 28, 2024, or the 2023 Annual Report, and, in the opinion of management, include all adjustments, which are normal and recurring in nature, necessary for a fair presentation of the Company’s financial position and results of operations. Operating results for interim periods are not necessarily indicative of the results that may be expected for a full fiscal year or any other period. The accompanying Condensed Consolidated Balance Sheet as of December 31, 2023 has been derived from the Company’s audited consolidated financial statements at that date but does not include all of the disclosures required by U.S. GAAP. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements included in the 2023 Annual Report, including the notes thereto. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies See the summary of the Company’s significant accounting policies set forth in the notes to its consolidated financial statements included in the 2023 Annual Report. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting periods. These estimates, judgments and assumptions are based on historical data and experience available at the date of the accompanying condensed consolidated financial statements, as well as various other factors management believes to be reasonable under the circumstances. The Company’s estimates and assumptions may evolve as conditions change. Actual results could differ significantly from these estimates. On an on-going basis, management evaluates its estimates, primarily those related to: (i) revenue recognition criteria, (ii) accounts receivable and allowances for credit losses, (iii) the useful lives of fixed assets and intangible assets, (iv) estimates of tax liabilities, (v) valuation of intangible assets and goodwill at time of acquisition and on a recurring basis, and (vi) valuation of investments. Trade Accounts Receivable and Allowance for Credit Losses Trade accounts receivable are stated at the amount the Company expects to collect. The Company maintains an allowance for credit losses for expected uncollectible trade accounts receivable, which is recorded as an offset to trade accounts receivable, and changes in allowance for credit losses are classified as a general and administrative expense in the accompanying Condensed Consolidated Statements of Operations. The Company assesses collectability by reviewing trade accounts receivable on a collective basis where similar risk characteristics exist and on an individual basis when it identifies specific customers that have deterioration in credit quality such that they may no longer share similar risk characteristics with the other receivables. In determining the amount of the allowance for credit losses, the Company uses a loss rate model or probability-of-default and loss given default model. Following the loss rate method, expected credit losses are determined based on an estimated historical loss rate. The probability of default method allows the ability to define a point of default and measure credit losses for receivables that have reached the point of default for purposes of calculating the allowance for credit losses. Loss given default represents the likelihood that a receivable that has reached the point of default will not be collected in full. The Company updates its credit loss rate and factors annually to incorporate the most recent historical data and adjusts the quantitative portion of the reserve through its qualitative reserve overlay. The Company looks at qualitative factors such as general economic conditions in determining expected credit losses. The roll-forward for the allowance for credit losses for the six months ended June 30, 2024, dollars in thousands, is as follows: Allowance for credit losses at beginning of year $ 25,226 Current period gain ( 4,157 ) Write-downs ( 2,855 ) Recoveries of amounts previously charged off 7,093 Allowance for credit losses as of June 30, 2024 $ 25,307 Redeemable Preferred Stock Investment The redeemable preferred stock investment of $ 20.4 million as of June 30, 2024 represents the fair value of redeemable preferred stock of a private company that the Company purchased in July 2021. The investment is classified as available-for-sale debt securities. The fair value of available-for-sale debt security is included in the Condensed Consolidated Balance Sheets. Since the Company intends on holding the preferred stock, and the preferred stock is not redeemable until July 2027 , the investment is recorded as a long-term investment, and unrealized gain (loss) is excluded from earnings and reported in other comprehensive income (loss). The unrealized gain (loss) is insignificant in each of the three and six months ended June 30, 2024, and $( 0.1 ) million and $ 0.5 million in the three and six months ended June 30, 2023 , respectively. Finite-Lived Intangible assets Intangible assets, unless determined to be indefinite-lived, are amortized over their estimated useful lives. The Company amortizes intangible assets on a straight-line basis with definite lives generally over periods ranging from three to fourteen years . See Note 14, Goodwill and Acquisition-Related Intangibles , for details of intangible assets. Impairment of Long-Lived Assets The Company evaluates the carrying amount of its long-lived assets whenever events or changes in circumstances indicate that the assets may not be recoverable. An impairment loss would be recognized when estimated future cash flows expected to result from the use of an asset and its eventual disposition is less than the carrying amount of the asset. Goodwill and Indefinite-Lived Intangibles Intangibles in-process research & development costs, or IPR&D, are considered to be indefinite-lived until the completion or abandonment of the associated research and development efforts. If and when development is complete, the associated assets would be deemed finite-lived and would then be amortized based on their respective estimated useful lives at that point in time. The Company assesses goodwill and indefinite-lived intangibles for impairment on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company may choose to bypass a qualitative assessment of impairment for any reporting unit and proceed directly to performing a quantitative assessment. An impairment loss would be recognized for the amount by which the reporting unit's carrying amount exceeds its fair value. The Company’s quantitative assessment includes estimating the fair value of each reporting unit and comparing it to its carrying value. The Company estimates the fair value of reporting units using both income-based and market-based valuation methods and typically engages a third-party appraisal firm to assist with the valuation. The estimated fair value for each reporting unit is determined based upon the range of estimated values developed from the income and market-based methods. If the estimated fair value of a reporting unit exceeds its carrying value, the goodwill is not impaired, and no further review is required. The income-based fair value methodology is based on a reporting unit’s forecasted future cash flows that are discounted to the present value using the reporting unit’s weighted average cost of capital. Under the income-based approach, it requires management's assumptions and judgments regarding economic conditions in the markets in which the company operates and conditions in the capital markets, many of which are outside of management's control. The market-based fair value methodology looks at the guideline public company valuation method to determine the prices of comparable public companies and looks at merger and acquisition methods, similar businesses that were sold recently, to estimate the value of the reporting units. Under the market-based approach, judgment is required in evaluating market multiples and recent transactions. Fair Value of Financial Instruments The Company’s financial instruments consist principally of cash and cash equivalents, marketable securities, trade accounts receivable, redeemable preferred stock investment, accounts payable, and accrued liabilities. The carrying amounts of certain of these financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate fair value due to their short maturities. Fair value of marketable securities and redeemable preferred stock investment is disclosed in Note 4, Fair Value Measurements , to the accompanying consolidated financial statements. Concentrations of Credit Risk, Customers, and Suppliers Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, trade accounts receivable, and marketable securities, which consist of debt securities and equity securities. As of June 30, 2024, substantially all of the Company’s cash and cash equivalents were deposited in accounts at financial institutions, and amounts may exceed federally insured limits. Management believes that the Company is not exposed to significant credit risk due to the financial strength of the depository institutions in which its cash and cash equivalents are held. In certain periods, a small number of customers has accounted for a significant portion of the Company’s revenue. For the laboratory services business, aggregating customers under common control, one customer comprised of $ 16.9 million or 24 % of total revenue in the three months ended June 30, 2024 and $ 29.6 million or 22 % of the Company's revenue in the six months ended June 30, 2024. The same customer contributed $ 9.1 million or 13 % of the Company's revenue in the three months ended June 30, 2023 . No customer contributed more than 10 % of the Company's revenue in the six months ended June 30, 2023. One customer comprised 19 % of total accounts receivable, net, as of June 30, 2024, and 13 % of total accounts receivable, net, as of December 31, 2023. For the therapeutic development business, as of June 30, 2024 and December 31, 2023, there is no concentration risk, as there are no customers or revenue, as it does not have any commercialized or approved product candidates. The Company relies on a limited number of suppliers for certain laboratory substances used in the chemical reactions incorporated into its processes, referred to as reagents, as well as for the sequencers and various other equipment and materials it uses in its laboratory operations. In particular, the Company relies on a sole supplier for the next generation sequencers and associated reagents it uses to perform its genetic tests and as the sole provider of maintenance and repair services for these sequencers. The operations of the laboratory services business would be interrupted if it encountered delays or difficulties securing these reagents, sequencers, other equipment or materials or maintenance and repair services, which could occur for a variety of reasons, including if the Company needs a replacement or temporary substitute for any of its limited or sole suppliers and is not able to locate and make arrangements with an acceptable replacement or temporary substitute. The Company's development efforts could also be delayed or interrupted if is unable to procure items needed for its therapeutic development activities. The Company’s therapeutic development business also relies on ANP Technologies, Inc., or ANP, for certain laboratory services, equipment, tools, and drug intermediates in connection with research and development efforts. The Company believes there are currently only a few other manufacturers that are capable of supplying and servicing some of the equipment and other materials necessary for its laboratory operations, including collection kits, sequencers and various associated reagents. Equity Method Investments The Company uses the equity method to account for investments in entities that it does not control but in which it has the ability to exercise significant influence over operating and financial policies. The Company's 25 % interest in Boston Molecules, Inc. is accounted for using the equity method but the investment was reduced to zero in 2020 due to full impairment. The Company has not recorded any additional losses. Reportable Segment and Geographic Information Reportable segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker, or CODM, in making decisions regarding resource allocation and assessing performance. The Company’s CODM is its Chief Executive Officer. The Company reports its business in two segments, a laboratory services business and a therapeutic development business. For further financial information about these segments, including information for each of the periods presented regarding revenue, operating income (loss), and other important information, see Note 7, Reportable Segment and Geographic Information . Foreign Currency Translation and Foreign Currency Transactions The Company translates the assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Loss from these translations is recognized in foreign currency translation loss included in the accompanying Condensed Consolidated Statements of Comprehensive Income (Loss). The Company and its subsidiaries that use the U.S. dollar as their functional currency remeasure monetary assets and liabilities at exchange rates in effect at the end of each period, whereas reagents and supplies, property and nonmonetary assets and liabilities are measured at historical rates. Gain or loss from these remeasurements was not significant for the three and six months ended June 30, 2024 and 2023 . Comprehensive Income (Loss) Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) consists of net unrealized gain (loss) on available-for-sale debt securities, net of tax, and foreign currency translation adjustments from the Company's subsidiaries not using the U.S. dollar as their functional currency. Reclassification from other comprehensive income (loss) to net loss was $ 0.3 million and $ 0.9 million in the three and six months ended June 30, 2024, respectively, and there were no reclassifications from other comprehensive income (loss) to net loss in the three and six months ended June 30, 2023 . The tax effect related to net unrealized losses on available-for-sale debt securities was zero in the three and six months ended June 30, 2024 due to the valuation allowance in the current period that precludes the Company from recognizing the deferred tax benefit. The tax effects related to net unrealized gain (loss) on available-for-sale debt securities were $( 0.8 ) million and $ 1.2 million in the three and six months ended June 30, 2023 , respectively. Disaggregation of Revenue The Company classifies its customers into three payor types: (i) Insurance, (ii) Institutions, including hospitals, medical institutions, other laboratories, governmental bodies, municipalities, and large corporations, or (iii) Patients who pay directly. The Company believes these classifications best depict how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors. The following table summarizes revenue from contracts with customers by payor type: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Revenue by payor Institutional $ 38,950 $ 34,082 $ 72,554 $ 65,074 Insurance 31,100 33,061 61,143 67,612 Patient 978 710 1,816 1,335 Total revenue $ 71,028 $ 67,853 $ 135,513 $ 134,021 During three and six months ended June 30, 2024, the Company experienced a change in estimate related to variable consideration. $ 0.6 million and $ 1.8 million variable consideration were recognized in the three and six months ended June 30, 2024, respectively, that related to COVID-19 tests completed in the prior periods due to the recent collection efforts, which was included as revenue from insurance in the table above. The Company estimates variable consideration using the expected value method. Any changes in variable consideration estimates that affect transactions are accounted for on a cumulative catch-up basis. There was no material variable consideration recognized in the three and six months ended June 30, 2023. Contract Balances Receivables from contracts with customers - Receivables from contracts with customers are included within trade accounts receivable on the Condensed Consolidated Balance Sheets. Net receivable from Insurance and Institutional customers represented 44 % and 56 % , respectively, as of June 30, 2024, and 39 % and 61 % , respectively, as of December 31, 2023. Contracts assets and liabilities - Contract assets from contracts with customers associated with contract execution and certain costs to fulfill a contract are included in other current assets in the accompanying Condensed Consolidated Balance Sheets. The Company did no t have any contract assets as of June 30, 2024 and December 31, 2023. Contract liabilities are recorded when the Company receives payment prior to completing its obligation to transfer goods or services to a customer. Contract liabilities are included in the current liabilities in Condensed Consolidated Balance Sheets. Revenues of $ 0.4 million and $ 1.2 million were recognized for the three and six months ended June 30, 2024, respectively, and $ 0.1 million and $ 1.7 million were recognized for the three and six months ended June 30, 2023 , respectively, related to contract liabilities at the beginning of the respective periods. Recent Accounting Pronouncements The Company evaluates all Accounting Standards Updates, or ASUs, issued by the Financial Accounting Standards Board, or FASB, for consideration of their applicability. ASUs not included in the Company’s disclosures were assessed and determined to be either not applicable or are not expected to have a material impact on the Company’s condensed consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segments. This update improves reportable segment disclosure requirements and requires enhanced disclosures related to significant segment expenses regularly provided to the CODM, the amount for other segment items with descriptions of the composition, segment profit or loss, and clarification on if the CODM uses more than one measurement of a segment's profit or loss in assessing segment performance and deciding how to allocate resources. Amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the impacts of this amendment on the consolidated financial statements and related disclosure. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures. The update requires more detailed information on certain income tax disclosures including the income tax rate reconciliation and income taxes paid. Amendments in this update are effective for annual periods beginning December 15, 2024 for public entities, and early adoption is permitted. The Company is currently evaluating the impacts of this amendment on the consolidated financial statements and related disclosure. The Company does not expect that any other recently issued accounting guidance will have a significant effect on its consolidated financial statements. |
Equity and Debt Securities
Equity and Debt Securities | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Equity and Debt Securities | Note 3. Equity and Debt Securities The Company’s equity and debt securities consisted of the following: June 30, 2024 Amortized Unrealized Unrealized Aggregate (in thousands) Equity securities: Long-term Preferred stock of privately held company $ 15,000 $ — $ — $ 15,000 Total equity securities 15,000 — — 15,000 Available-for-sale debt securities Short-term U.S. government debt securities 98,931 2 ( 588 ) 98,345 U.S. agency debt securities 77,972 — ( 674 ) 77,298 U.S. treasury bills 51,651 — ( 5 ) 51,646 Corporate debt securities 13,325 — ( 188 ) 13,137 Money market accounts 55,067 — — 55,067 Municipal bonds 6,189 — ( 20 ) 6,169 Less: Cash equivalents ( 55,067 ) — — ( 55,067 ) Total debt securities due within 1 year 248,068 2 ( 1,475 ) 246,595 After 1 year through 5 years U.S. government debt securities 348,055 147 ( 2,784 ) 345,418 U.S. agency debt securities 142,196 — ( 1,511 ) 140,685 Corporate debt securities 36,518 — ( 560 ) 35,958 Municipal bonds 2,888 2 ( 14 ) 2,876 Yankee debt securities 501 — ( 37 ) 464 Redeemable preferred stock investment 20,000 438 — 20,438 Total debt securities due after 1 year through 5 years 550,158 587 ( 4,906 ) 545,839 After 5 years through 10 years Municipal bonds 765 1 ( 4 ) 762 Total debt securities due after 5 years through 10 years 765 1 ( 4 ) 762 Total available-for-sale debt securities 798,991 590 ( 6,385 ) 793,196 Total equity and debt securities $ 813,991 $ 590 $ ( 6,385 ) $ 808,196 December 31, 2023 Amortized Unrealized Unrealized Aggregate (in thousands) Equity securities: Long-term Preferred stock of privately held company $ 15,000 $ — $ — $ 15,000 Total equity securities 15,000 — — 15,000 Available-for-sale debt securities Short-term U.S. government debt securities 119,739 8 ( 1,765 ) 117,982 U.S. agency debt securities 72,310 — ( 1,414 ) 70,896 U.S. treasury bills 69,214 36 — 69,250 Corporate debt securities 63,810 — ( 792 ) 63,018 Money market accounts 38,291 — — 38,291 Municipal bonds 5,557 1 ( 23 ) 5,535 Less: Cash equivalents ( 38,291 ) — — ( 38,291 ) Total debt securities due within 1 year 330,630 45 ( 3,994 ) 326,681 After 1 year through 5 years U.S. government debt securities 247,104 1,262 ( 578 ) 247,788 U.S. agency debt securities 156,150 161 ( 490 ) 155,821 Corporate debt securities 12,885 — ( 765 ) 12,120 Municipal bonds 6,337 2 ( 48 ) 6,291 Yankee debt securities 752 — ( 60 ) 692 Redeemable preferred stock investment 20,000 438 — 20,438 Total debt securities due after 1 year through 5 years 443,228 1,863 ( 1,941 ) 443,150 After 5 years through 10 years Municipal bonds 868 1 ( 10 ) 859 Total debt securities due after 5 years through 10 years 868 1 ( 10 ) 859 Total available-for-sale debt securities 774,726 1,909 ( 5,945 ) 770,690 Total equity and debt securities $ 789,726 $ 1,909 $ ( 5,945 ) $ 785,690 Gross unrealized losses on the Company’s equity and debt securities were $ 6.4 million and $ 5.9 million as of June 30, 2024 and December 31, 2023, respectively. Proceeds from sale of available-for-sale securities were $ 18.7 million and $ 75.6 million for the three and six months ended June 30, 2024, respectively. Gross realized losses on the Company's available-for-sale securities were $ 0.3 million and $ 0.9 million for the three and six months ended June 30, 2024, respectively, and the gross realized income was insignificant for the three and six months ended June 30, 2024 . There was no sale of available-for-sale securities or realized gain or loss for each of the three and six months ended June 30, 2023. The cost of any marketable securities sold is based on the specific-identification method. The Company did not recognize any credit losses for its available-for-sale debt securities during each of the three and six months ended June 30, 2024 and 2023 . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 4. Fair Value Measurements The authoritative guidance on fair value measurements establishes a framework with respect to measuring assets and liabilities at fair value on a recurring basis and non-recurring basis. Under the framework, fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as of the measurement date. The framework also establishes a three-tier hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability and are developed based on the best information available in the circumstances. The hierarchy consists of the following three levels: Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Inputs are unobservable for the asset or liability. The following tables present information about the Company’s financial assets measured at fair value on a recurring basis, based on the above three-tier fair value hierarchy: June 30, 2024 Total Level 1 Level 2 Level 3 (in thousands) Equity securities, debt securities and cash equivalents: U.S. government debt securities $ 443,763 $ — $ 443,763 $ — U.S. agency debt securities 217,983 — 217,983 — Money market accounts 55,067 55,067 — — U.S. treasury bills 51,646 51,646 — — Corporate debt securities 49,095 — 49,095 — Redeemable preferred stock investment 20,438 — — 20,438 Preferred stock of privately held company 15,000 — — 15,000 Municipal bonds 9,807 — 9,807 — Yankee debt securities 464 — 464 — Total equity securities, debt securities and cash equivalents $ 863,263 $ 106,713 $ 721,112 $ 35,438 December 31, 2023 Total Level 1 Level 2 Level 3 (in thousands) Equity securities, debt securities and cash equivalents: U.S. government debt securities $ 365,770 $ — $ 365,770 $ — U.S. agency debt securities 226,717 — 226,717 — Corporate debt securities 75,138 — 75,138 — U.S. treasury bills 69,250 69,250 — — Money market accounts 38,291 38,291 — — Redeemable preferred stock investment 20,438 — — 20,438 Preferred stock of privately held company 15,000 — — 15,000 Municipal bonds 12,685 — 12,685 — Yankee debt securities 692 — 692 — Total equity securities, debt securities and cash equivalents $ 823,981 $ 107,541 $ 681,002 $ 35,438 The Company’s Level 1 assets include U.S. treasury bills and money market instruments and are valued based upon observable market prices. Level 2 assets consist of U.S. government and U.S. agency debt securities, municipal bonds, corporate debt securities and Yankee debt securities. Level 2 securities are valued based upon observable inputs that include reported trades, broker/dealer quotes, bids and offers. As of June 30, 2024, the Company had preferred stock of a privately held company, which was included in other long-term assets in the accompanying Condensed Consolidated Balance Sheets, and redeemable preferred stock of a private company that were measured using unobservable (Level 3) inputs. The fair value of redeemable preferred stock as of June 30, 2024 and December 31, 2023 was based on valuation performed by a third-party valuation company utilizing the guideline public company method under market approach and the discounted cash flow method under income approach. For the value of the investment in private equity securities, the Company elected to measure it at cost minus impairment, as the preferred stock of the privately held company did not have a readily determinable fair value, and no impairment loss was recorded as of June 30, 2024. There were no transfers between fair value measurement levels during the three and six months ended June 30, 2024 and 2023 . |
Fixed Assets
Fixed Assets | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | Note 5. Fixed Assets Major classes of fixed assets consisted of the following: Useful Lives June 30, 2024 December 31, 2023 (in thousands) Medical lab equipment 5 months to 12 Years $ 54,152 $ 56,025 Building improvements 6 months to 39 Years 16,383 7,748 Building 39 Years 15,923 9,781 Computer software 1 to 5 Years 8,039 7,982 Computer hardware 1 to 5 Years 6,882 6,805 Aircraft 7 Years 6,400 6,400 Leasehold improvements Shorter of lease term or estimated useful life 5,556 11,222 Furniture and fixtures 1 to 5 Years 3,491 3,860 Land improvements 5 to 15 Years 904 904 Automobile 3 to 7 Years 450 445 General equipment 3 to 5 Years 108 115 Land 12,675 8,800 Assets not yet placed in service 7,842 15,010 Total 138,805 135,097 Less: Accumulated depreciation ( 45,437 ) ( 51,633 ) Fixed assets, net $ 93,368 $ 83,464 Depreciation expenses on fixed assets totaled $ 4.0 million and $ 8.6 million for the three and six months ended June 30, 2024, respectively, and $ 4.1 million and $ 8.8 million for the three and six months ended June 30, 2023, respectively. |
Other Significant Balance Sheet
Other Significant Balance Sheet Accounts | 6 Months Ended |
Jun. 30, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Other Significant Balance Sheet Accounts | Note 6. Ot her Significant Balance Sheet Accounts Other current assets consisted of the following: June 30, 2024 December 31, 2023 (in thousands) Prepaid income taxes $ 9,363 $ 12,675 Prepaid expenses 7,294 7,744 Reagents and supplies 7,026 5,827 Marketable securities interest receivable 5,917 4,994 Other receivable 1,225 1,319 Total $ 30,825 $ 32,559 Accrued liabilities consisted of the following: June 30, 2024 December 31, 2023 (in thousands) Accrued legal liabilities $ 7,026 $ 7,026 Payroll liabilities 6,024 5,741 Vacation accrual 4,134 3,543 Other accrued liabilities 3,738 4,215 Accrued bonus and commission 3,215 6,255 Operating lease liabilities - short term 2,288 3,957 Total $ 26,425 $ 30,737 Accrued legal liabilities as of June 30, 2024, and December 31, 2023, includ ed $ 6.9 million in connection with the Company's voluntary disclosure process as described in Note 8, Debt, Commitments, and Contingencies. Other accrued liabilities included short-term finance lease liabilities, health insurance liabilities, and third-party billing services. Other long-term liabilities consisted of the following: June 30, 2024 December 31, 2023 (in thousands) Operating lease liabilities, long term $ 7,155 $ 7,147 Other long-term liabilities 4,749 4,973 Notes payable, long term 2,493 2,964 Total $ 14,397 $ 15,084 |
Reportable Segment and Geograph
Reportable Segment and Geographic Information | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Reportable Segment and Geographic Information | Note 7. Reportable Segment and Geographic Information The Company viewed and managed its operations in one reportable segment prior to December 2023. Given the advancement of the therapeutic development business, the Company made certain changes, including the bifurcation of financial information for the Company’s budget and forecast planning process in December 2023. The CODM manages the operations of the Company and reviews discrete financial information to make resource decisions for its two operating segments separately. These are laboratory services and therapeutic development. The laboratory services operating segment offers technical laboratory services and professional interpretation of laboratory results by licensed physicians who specialize in pathology and oncology. The therapeutic development operating segment is a pharmaceutical research and development entity that the Company acquired in November 2022. These operating segments do not meet the aggregation criteria and therefore represent the Company’s reportable segments. There is no inter-segment allocation of interest expense and income taxes. There is no inter-segment revenue and operating income or loss. Information regarding the Company’s operations and assets for its reportable segments as well as geographic information are as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Revenue: Laboratory services: Precision diagnostics $ 43,144 $ 31,935 $ 80,590 $ 59,840 Anatomic pathology 23,431 27,390 46,538 53,801 BioPharma services 3,612 7,771 6,268 16,191 COVID-19 841 757 2,117 4,189 Total laboratory services 71,028 67,853 135,513 134,021 Therapeutic development — — — — Total $ 71,028 $ 67,853 $ 135,513 $ 134,021 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Loss before income taxes: Operating loss Laboratory services $ ( 11,823 ) $ ( 16,282 ) $ ( 28,577 ) $ ( 37,885 ) Therapeutic development ( 7,083 ) ( 3,516 ) ( 12,127 ) ( 6,737 ) Total operating loss ( 18,906 ) ( 19,798 ) ( 40,704 ) ( 44,622 ) Interest and other income, net 7,692 5,098 15,317 8,873 Loss before income taxes $ ( 11,214 ) $ ( 14,700 ) $ ( 25,387 ) $ ( 35,749 ) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Depreciation and amortization: Laboratory services $ 5,979 $ 6,146 $ 12,468 $ 12,866 Therapeutic development 174 166 348 325 Total $ 6,153 $ 6,312 $ 12,816 $ 13,191 June 30, 2024 December 31, 2023 (in thousands) Assets: Laboratory services $ 1,143,531 $ 1,146,192 Therapeutic development 88,708 89,136 Total $ 1,232,239 $ 1,235,328 Geographic distribution of revenue: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Revenue: United States $ 64,194 $ 63,051 $ 122,044 $ 125,113 Foreign China 2,477 2,694 6,581 4,782 Other countries 4,357 2,108 6,888 4,126 Total foreign 6,834 4,802 13,469 8,908 Total $ 71,028 $ 67,853 $ 135,513 $ 134,021 Geographic distribution of property, plant and equipment, net: June 30, 2024 December 31, 2023 (in thousands) Fixed assets: United States $ 88,715 $ 77,938 Foreign 4,653 5,526 Total $ 93,368 $ 83,464 |
Debt, Commitments and Contingen
Debt, Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Debt Commitments And Contingencies Disclosure [Abstract] | |
Debt, Commitments and Contingencies | Note 8. Debt, Commitments, and Contingencies Debt Notes payable as of June 30, 2024 consisted of $ 2.9 million of notes payable related to an installment sale contract the Company entered in February 2022 for a building. The notes payable related to the installment sale are due in February 2030, and carry an interest rate of 1.08 %. The current portion and noncurrent portion are $ 0.4 million and $ 2.5 million , respectively, and the noncurrent portion is included in the other long-term liabilities in the accompanying Condensed Consolidated Balance Sheets. The related interest expenses for the three and six months ended June 30, 2024 and 2023 were no t significant. Purchase Obligations From time to time, the Company enters into certain purchase commitments with its vendors, consisting primarily of services, reagent and supplies, computer software, and medical lab equipment. As of June 30, 2024, the Company had non-cancelable purchase obligations of $ 45.7 million , of which $ 32.1 million is payable within twelve months, and the remainder, $ 13.6 million is payable within the next five years. Contingencies From time to time, the Company may be subject to legal proceedings and claims arising in the ordinary course of business. As previously disclosed in the Company’s periodic reports filed pursuant to the Securities Exchange Act of 1934, as amended, or the Exchange Act, the Company has received a Civil Investigative Demand, or CID, issued by the U.S. Department of Justice, or the DOJ, pursuant to the False Claims Act related to its investigation of allegations of medically unnecessary laboratory testing, improper billing for laboratory testing, and remuneration received or provided in violation of the Anti-Kickback Statute and the Stark Law. Among other things, this CID requests information and records relating to certain of the Company’s customers named in the CID. Also, as previously disclosed, the SEC is conducting a non-public formal investigation, which appears to relate to the matters raised in the CID requests and the Company’s Exchange Act reports filed for 2018 through 2020. The Company is fully cooperating with both the U.S. DOJ and the SEC in connection with their requests and investigations. On May 6, 2024, the SEC staff, or the Staff, advised the Company that it has made a preliminary determination to recommend that the SEC file an enforcement action against the Company based on a corporate negligence theory, which, if authorized, would allege violations of Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933, as amended, Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act, and Rules 13a-1, 13a-13, and 12b-20 thereunder. The Company does not believe that any enforcement recommendation is warranted and, on June 7, 2024, responded to the Staff’s preliminary recommendation. The Company is engaged in ongoing discussions with the SEC staff and the DOJ regarding these matters. The Company cannot predict when these matters will be resolved, the outcome of these matters, or their potential impact, which may materially and adversely affect the Company’s business, prospects, and financial condition. Similar to other laboratories in the industry, the Company is currently being audited by the U.S. Health Resources and Services Administration, or HRSA, with respect to its reimbursement for COVID-19 tests furnished to patients believed to be uninsured. The Company recorded approximately $ 548.9 million of reimbursements from HRSA under the Uninsured Program during the years ended December 31, 2022, 2021, and 2020. The Company is fully cooperating and working with HRSA’s auditors to resolve any issues, including any reimbursed amounts that may need to be returned to HRSA. There is uncertainty with respect to the methodology HRSA will use and whether and how they will extrapolate audit results. The results of the HRSA audit may materially and adversely affect the Company’s business, prospects, and financial condition. The Company cannot reasonably estimate the loss or range of loss, if any, that may result from any material government investigations, audits, and reviews in which it is currently involved, given the inherent difficulty in predicting regulatory action, fines and penalties, if any, and the various remedies and levels of judicial review available to the Company in the event of an adverse finding. As a result, the Company has not recorded any liability related to these matters. In relation to a recent advisory opinion issued by the Office of Inspector General of the Department of Health and Human Services, the Company’s subsidiary, Symphony Buyer, Inc., or Inform Diagnostics, initiated a voluntary disclosure process with the appropriate government contact. The Company currently has estimated and recorded $ 6.9 million as a liability in its financial statements in connection with this voluntary disclosure. This estimate may be incorrect, and the actual amount of liability may be lower or may materially exceed this estimate. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | Note 9. Leases Lessee The Company is a lessee to various non-cancelable operating leases with varying terms through March 2034 primarily for laboratory and office space and equipment. The Company has options to renew some of these leases after their expirations. On a lease-by-lease basis, the Company considers such options, which may be elected at the Company’s sole discretion, in determining the lease term. The Company also has various finance leases for lab equipment with varying terms through December 2026 , some of which were acquired in business combinations. The Company does not have any leases with variable lease payments. The Company’s operating lease agreements do not contain any residual value guarantees, material restrictive covenants, bargain purchase options, or asset retirement obligations. The Company’s headquarters are located in El Monte, California, which is comprised of various corporate offices and a laboratory certified under the Clinical Laboratory Improvement Amendments of 1988, or CLIA, accredited by the College of American Pathologists, or CAP, and licensed by the State of California Department of Public Health. Other CLIA-certified laboratories are located in Coppell, Texas; Needham, Massachusetts; Phoenix, Arizona; Alpharetta, Georgia; and New York, New York. The operating and finance lease right-of-use asset, short-term lease liabilities, and long-term lease liabilities as of June 30, 2024 and December 31, 2023 were as follows: June 30, 2024 December 31, 2023 (in thousands) Operating lease ROU asset, net $ 9,186 $ 10,838 Operating lease liabilities, short term $ 2,288 $ 3,957 Operating lease liabilities, long term $ 7,155 $ 7,147 Finance lease ROU asset, net $ 1,037 $ 1,316 Finance lease liabilities, short term $ 492 $ 544 Finance lease liabilities, long term $ 535 $ 760 The following were operating and finance lease expenses: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Operating lease cost $ 1,348 $ 1,834 $ 2,977 $ 3,536 Finance lease cost: Amortization of ROU assets 136 243 273 486 Interest on lease liabilities 11 25 23 52 Short-term lease cost 322 506 638 1,007 Total lease cost $ 1,817 $ 2,608 $ 3,911 $ 5,081 Supplemental information related to operating and finance leases were the following: June 30, 2024 Weighted-average remaining lease term, operating leases 5.31 years Weighted-average discount rate, operating leases 4.53 % Weighted-average remaining lease term, finance lease 2.28 years Weighted-average discount rate, finance lease 3.61 % The following is a maturity analysis of operating and finance lease liabilities using undiscounted cash flows on an annual basis with renewal periods included: Operating Leases Finance Lease (in thousands) Year Ending December 31, 2024 (remaining 6 months) $ 1,389 $ 235 2025 2,547 468 2026 1,974 366 2027 1,886 — 2028 712 — 2029 514 — Thereafter 1,890 — Total lease payments 10,912 1,069 Less imputed interest ( 1,469 ) ( 42 ) Total $ 9,443 $ 1,027 Lessor The Company leases out space in buildings it owns and leases to third-party tenants under noncancelable operating leases. As of June 30, 2024 , the remaining lease term is 6 months, including renewal options and may include rent escalation clauses. Lease income primarily represents fixed lease payments from tenants recognized on a straight-line basis over the application lease term. Variable lease income represents tenant payments for real estate taxes, insurance, and maintenance. The lease income was included in interest and other income, net, in the accompanying Condensed Consolidated Statements of Operations, and was not significant for three and six months ended June 30, 2024 and 2023 . Future lease payments from tenants as of June 30, 2024 are not significant. |
Equity-Based Compensation
Equity-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Equity-Based Compensation | Note 10. Equity-Based Compensation The Company has included equity-based compensation expense as part of cost of revenue and operating expenses in the accompanying Condensed Consolidated Statements of Operations as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Cost of revenue $ 1,999 $ 2,359 $ 4,008 $ 4,753 Research and development 4,136 3,670 7,980 7,118 Selling and marketing 1,002 1,094 2,052 2,455 General and administrative 4,498 3,200 9,113 6,262 Total $ 11,635 $ 10,323 $ 23,153 $ 20,588 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11. Income Taxes The effective tax rate used for interim periods is the estimated annual effective consolidated tax rate, based on the current estimate of full year results, except that taxes related to specific events, if any, are recorded in the interim period in which they occur. The annual effective tax rate is based upon several significant estimates and judgments, including the estimated annual pre-tax income (loss) of the Company in each tax jurisdiction in which it operates, and the development of tax planning strategies during the year. In addition, the Company’s tax expense can be impacted by changes in tax rates or laws and other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions. The Company recorded consolidated benefit from income taxes of $ 2.1 million and $ 2.5 million for the three and six months ended June 30, 2024, respectively, compared with $ 3.1 million and $ 8.3 million for the three and six months ended June 30, 2023, respectively. The Company’s effective tax rates were 19 % and 10 % for the three and six months ended June 30, 2024 , respectively, compared to 21 % and 23 % for the three and six months ended June 30, 2023, respectively. The change in the effective tax rate compared to prior periods is due to the valuation allowance in the current period that precludes the Company from recognizing the full benefit from net operating losses. The Company is under examination by certain tax authorities for the 2020 to 2021 tax years. While the timing of the conclusion of the examination is uncertain, the Company believes that adequate amounts have been reserved for adjustments that may result. During 2024, the statutes of limitations will lapse on the Company’s 2020 federal tax year and certain 2019 and 2020 state tax years. The Company does not believe the federal or state statute lapses or any other event will significantly impact the balance of unrecognized tax benefits in the next twelve months. The Company received $ 0.7 million and $ 7.0 million in income tax refunds in the three and six months ended June 30, 2024, respectively, and an insignificant amount and $ 0.7 million in the three and six months ended June 30, 2023 , respectively. The income tax refunds received, which were due to overpayment in prior years, were not netted in the income tax paid amounts included in the supplemental disclosure in the accompanying Condensed Consolidated Statements of Cash Flows. |
Loss per Share
Loss per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Loss per Share | Note 12. Loss per Share The following table presents the calculation of basic and diluted loss per share for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Net loss attributable to Fulgent $ ( 8,710 ) $ ( 11,229 ) $ ( 22,172 ) $ ( 26,569 ) Weighted-average common shares - outstanding, basic 30,098 29,813 29,933 29,675 Weighted-average common shares - outstanding, diluted 30,098 29,813 29,933 29,675 Loss per share: Basic $ ( 0.29 ) $ ( 0.38 ) $ ( 0.74 ) $ ( 0.90 ) Diluted $ ( 0.29 ) $ ( 0.38 ) $ ( 0.74 ) $ ( 0.90 ) The following securities have been excluded from the calculation of diluted loss per share because their effect would have been anti-dilutive due to the Company's net loss position: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Stock options 228 210 228 211 Restricted stock units 2,057 1,274 2,057 1,232 Contingently issuable shares — 371 — 371 In the three and six months ended June 30, 2023, the Company also had contingently issuable shares for shares held back in connection with the business combination of Fulgent Pharma, or Pharma Hold Back Shares. In May 2024, the Company released the remaining Pharma Hold Back Shares such that no shares remain contingently issuable in connection with the business combination of Fulgent Pharma. |
Related Parties
Related Parties | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Parties | Note 13. Related Parties Linda Marsh, who is a member of the Company’s Board of Directors, or the Board, currently serves as the Senior Executive Vice President of AHMC Healthcare Inc., or AHMC. The Company performs testing services, on an arms-length basis, for AHMC, and recognized $ 22,000 and $ 117,000 in revenue from AHMC in the three and six months ended June 30, 2023, respectively. The revenue recognized for the three and six months ended June 30, 2024 was not significant. As of June 30, 2024 and December 31, 2023, insignificant amounts were owed to the Company by AHMC, which is included in trade accounts receivable, net, in the accompanying Condensed Consolidated Balance Sheets, in connection with this relationship. Ming Hsieh, the Chief Executive Officer and Chairperson of the Board, is on the board of directors and an approximately 20 % owner of ANP, from which the Company entered into certain drug-related licensing and development service agreements. The Chief Executive Officer of Fulgent Pharma, Ray Yin, is the Founder, President and Chief Technology Officer of ANP. The Company incurred $ 0.3 million and $ 1.0 million related to the licensing and development services in the three and six months ended June 30, 2024 , respectively, and $ 0.5 million and $ 1.5 million in the three and six months ended June 30, 2023, respectively. As of June 30, 2024 and December 31, 2023 , the Company did not owe anything to ANP in connection with these relationships. The Company also entered into an employee service agreement with ANP in April 2023 and recognized insignificant amounts in the three and six months ended June 30, 2024 and 2023, and insignificant amounts were owed to the Company by ANP in connection with the employee service agreement as of June 30, 2024 and December 31, 2023 . |
Goodwill and Acquisition-Relate
Goodwill and Acquisition-Related Intangibles | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquisition-Related Intangibles | Note 14. Goodwill and Acquisition-Related Intangibles There was no change in the carrying amount in the six months ended June 30, 2024. Goodwill, net, as of June 30, 2024 and December 31, 2023 by reporting unit was as follows: June 30, 2024 December 31, 2023 (in thousands) Goodwill, net: Laboratory services $ — $ — Therapeutic development 22,055 22,055 Total $ 22,055 $ 22,055 The Company has identified its laboratory services business and its therapeutic development business as its two operating segments, and the Company determined that the two operating segments represented the two reporting units. The Company tests for goodwill impairment at the reporting unit level on December 31st of each year and more frequently if events or circumstances indicate a potential impairment. Laboratory Services The Company recognized a full goodwill impairment loss for the goodwill of its laboratory services reporting unit as of December 31, 2023 due to a continued decline in its share price and market capitalization. Therapeutic Development Based upon the results of the quantitative assessments the Company performed as of December 31, 2023, the Company concluded that the fair values of the therapeutic development reporting unit and the IPR&D asset at December 31, 2023, were greater than the carrying values and that there was no impairment. There have been no significant changes in the six months ended June 30, 2024. There can be no assurance that the estimates and assumptions management made for the purposes of the goodwill or IPR&D impairment analysis will prove to be accurate predictions of future performance. It is possible that the conclusions regarding impairment or recoverability of goodwill or intangible assets could change in future periods. Management will continue to monitor the therapeutic development reporting unit. For all IPR&D projects, there are major risks and uncertainties associated with the timely and successful completion of development and commercialization of these product candidates, including the ability to confirm their efficacy based on data from clinical trials, the ability to obtain necessary regulatory approvals, and the ability to successfully complete these tasks within budgeted costs. The Company is not able to market a human therapeutic without obtaining regulatory approvals, and such approvals require completing clinical trials that demonstrate a product candidate is safe and effective. In addition, the availability and extent of coverage and reimbursement from third-party payors, including government healthcare programs and private insurance plans, impact the revenues a product can generate. Consequently, the eventual realized value, if any, of these acquired IPR&D projects may vary from their estimated fair values. Summaries of intangible asset balances as of June 30, 2024 and December 31, 2023 were as follows: Weighted-Average Amortization Period June 30, 2024 December 31, 2023 (in thousands) Laboratory Services: Royalty-free technology 10 Years $ 5,091 $ 5,211 Less: accumulated amortization ( 1,612 ) ( 1,390 ) Royalty-free technology, net 3,479 3,821 Customer Relationships 13 Years 83,092 83,119 Less: accumulated amortization ( 15,827 ) ( 12,586 ) Customer relationships, net 67,265 70,533 Trade name 8 Years 3,790 3,790 Less: accumulated amortization ( 1,154 ) ( 906 ) Trade name, net 2,636 2,884 In-place lease intangible assets 5 Years 360 360 Less: accumulated amortization ( 151 ) ( 116 ) In-place lease intangible assets, net 209 244 Laboratory information system platform 5 Years 1,860 1,860 Less: accumulated amortization ( 1,085 ) ( 899 ) Laboratory information system platform, net 775 961 Purchased patent 10 Years 28 28 Less: accumulated amortization ( 9 ) ( 8 ) Purchased patent, net 19 20 Total 74,383 78,463 Therapeutic Development: In-process research & development n/a 64,590 64,590 Total 64,590 64,590 Total intangible assets, net $ 138,973 $ 143,053 Acquisition-related intangibles included in the above tables are generally finite-lived and are carried at cost less accumulated amortization, except for IPR&D, which is related to the business combination of Fulgent Pharma in 2022 and has an indefinite life until research and development efforts are completed or abandoned. All other finite-lived acquisition-related intangibles related to the business combinations in 2022 and 2021 are amortized on a straight-line basis over their estimated lives, which approximates the pattern in which the economic benefits of the intangible assets are expected to be realized. Amortization of intangible assets was $ 2.0 million and $ 4.0 million in the three and six months ended June 30, 2024, respectively, and $ 2.0 million and $ 3.9 million for the three and six months ended June 30, 2023, respectively. Based on the carrying value of finite-lived intangible assets recorded as of June 30, 2024, and assuming no subsequent impairment of the underlying assets, the annual amortization expense for intangible assets is expected to be as follows: Amounts (in thousands) Year Ending December 31, 2024 (remaining 6 months) $ 3,979 2025 7,959 2026 7,657 2027 7,198 2028 7,163 2029 6,906 Thereafter 33,521 Total $ 74,383 |
Stock Repurchase Program
Stock Repurchase Program | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Stock Repurchase Program | Note 15. Stock Repurchase Program In March 2022, the Board authorized a $ 250.0 million stock repurchase program. Under the stock repurchase program, the Company may repurchase shares from time to time in the open market or in privately negotiated transactions. The stock repurchase program has no expiration from the date of authorization. During the three and six months ended June 30, 2024 , the Company repurchased zero and 10,000 shares of its common stock, respectively, at an aggregate cost of $ 0.2 million , under the stock repurchase program. During the three and six months ended June 30, 2023, the Company did no t repurchase any shares of its common stock . As of June 30, 2024, a total of approximately $ 150.5 million remained available for future repurchases of its common stock under the stock repurchase program. |
Retirement Plans
Retirement Plans | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Note 16. Retirement Plans The Company offers a 401(k) retirement savings plan, or the 401(k) Plan, for its employees, including its executive officers, who satisfy certain eligibility requirements. The Internal Revenue Code of 1986, as amended, allows eligible employees to defer a portion of their compensation, within prescribed limits, on a pre-tax basis through contributions to the 401(k) Plan. The Company matches contributions to the 401(k) Plan based on the amount of salary deferral contributions the participant makes to the 401(k) Plan. The Company provides safe harbor match of the employee contribution to his or her 401(k) Plan account. Total Company matching contributions to the 401(k) Plan were $ 1.0 million and $ 1.9 million for the three and six months ended June 30, 2024, respectively, and $ 0.8 million and $ 1.8 million for the three and six months ended June 30, 2023 , respectively. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 17. Subsequent Events As of August 2, 2024, no subsequent events are being reported. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting periods. These estimates, judgments and assumptions are based on historical data and experience available at the date of the accompanying condensed consolidated financial statements, as well as various other factors management believes to be reasonable under the circumstances. The Company’s estimates and assumptions may evolve as conditions change. Actual results could differ significantly from these estimates. On an on-going basis, management evaluates its estimates, primarily those related to: (i) revenue recognition criteria, (ii) accounts receivable and allowances for credit losses, (iii) the useful lives of fixed assets and intangible assets, (iv) estimates of tax liabilities, (v) valuation of intangible assets and goodwill at time of acquisition and on a recurring basis, and (vi) valuation of investments. |
Trade Accounts Receivable and Allowance for Credit Losses | Trade Accounts Receivable and Allowance for Credit Losses Trade accounts receivable are stated at the amount the Company expects to collect. The Company maintains an allowance for credit losses for expected uncollectible trade accounts receivable, which is recorded as an offset to trade accounts receivable, and changes in allowance for credit losses are classified as a general and administrative expense in the accompanying Condensed Consolidated Statements of Operations. The Company assesses collectability by reviewing trade accounts receivable on a collective basis where similar risk characteristics exist and on an individual basis when it identifies specific customers that have deterioration in credit quality such that they may no longer share similar risk characteristics with the other receivables. In determining the amount of the allowance for credit losses, the Company uses a loss rate model or probability-of-default and loss given default model. Following the loss rate method, expected credit losses are determined based on an estimated historical loss rate. The probability of default method allows the ability to define a point of default and measure credit losses for receivables that have reached the point of default for purposes of calculating the allowance for credit losses. Loss given default represents the likelihood that a receivable that has reached the point of default will not be collected in full. The Company updates its credit loss rate and factors annually to incorporate the most recent historical data and adjusts the quantitative portion of the reserve through its qualitative reserve overlay. The Company looks at qualitative factors such as general economic conditions in determining expected credit losses. The roll-forward for the allowance for credit losses for the six months ended June 30, 2024, dollars in thousands, is as follows: Allowance for credit losses at beginning of year $ 25,226 Current period gain ( 4,157 ) Write-downs ( 2,855 ) Recoveries of amounts previously charged off 7,093 Allowance for credit losses as of June 30, 2024 $ 25,307 |
Redeemable Preferred Stock Investment | Redeemable Preferred Stock Investment The redeemable preferred stock investment of $ 20.4 million as of June 30, 2024 represents the fair value of redeemable preferred stock of a private company that the Company purchased in July 2021. The investment is classified as available-for-sale debt securities. The fair value of available-for-sale debt security is included in the Condensed Consolidated Balance Sheets. Since the Company intends on holding the preferred stock, and the preferred stock is not redeemable until July 2027 , the investment is recorded as a long-term investment, and unrealized gain (loss) is excluded from earnings and reported in other comprehensive income (loss). The unrealized gain (loss) is insignificant in each of the three and six months ended June 30, 2024, and $( 0.1 ) million and $ 0.5 million in the three and six months ended June 30, 2023 , respectively. |
Finite-Lived Intangible assets | Finite-Lived Intangible assets Intangible assets, unless determined to be indefinite-lived, are amortized over their estimated useful lives. The Company amortizes intangible assets on a straight-line basis with definite lives generally over periods ranging from three to fourteen years . See Note 14, Goodwill and Acquisition-Related Intangibles , for details of intangible assets. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates the carrying amount of its long-lived assets whenever events or changes in circumstances indicate that the assets may not be recoverable. An impairment loss would be recognized when estimated future cash flows expected to result from the use of an asset and its eventual disposition is less than the carrying amount of the asset. |
Goodwill and Indefinite-Lived Intangibles | Goodwill and Indefinite-Lived Intangibles Intangibles in-process research & development costs, or IPR&D, are considered to be indefinite-lived until the completion or abandonment of the associated research and development efforts. If and when development is complete, the associated assets would be deemed finite-lived and would then be amortized based on their respective estimated useful lives at that point in time. The Company assesses goodwill and indefinite-lived intangibles for impairment on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company may choose to bypass a qualitative assessment of impairment for any reporting unit and proceed directly to performing a quantitative assessment. An impairment loss would be recognized for the amount by which the reporting unit's carrying amount exceeds its fair value. The Company’s quantitative assessment includes estimating the fair value of each reporting unit and comparing it to its carrying value. The Company estimates the fair value of reporting units using both income-based and market-based valuation methods and typically engages a third-party appraisal firm to assist with the valuation. The estimated fair value for each reporting unit is determined based upon the range of estimated values developed from the income and market-based methods. If the estimated fair value of a reporting unit exceeds its carrying value, the goodwill is not impaired, and no further review is required. The income-based fair value methodology is based on a reporting unit’s forecasted future cash flows that are discounted to the present value using the reporting unit’s weighted average cost of capital. Under the income-based approach, it requires management's assumptions and judgments regarding economic conditions in the markets in which the company operates and conditions in the capital markets, many of which are outside of management's control. The market-based fair value methodology looks at the guideline public company valuation method to determine the prices of comparable public companies and looks at merger and acquisition methods, similar businesses that were sold recently, to estimate the value of the reporting units. Under the market-based approach, judgment is required in evaluating market multiples and recent transactions. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments consist principally of cash and cash equivalents, marketable securities, trade accounts receivable, redeemable preferred stock investment, accounts payable, and accrued liabilities. The carrying amounts of certain of these financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate fair value due to their short maturities. Fair value of marketable securities and redeemable preferred stock investment is disclosed in Note 4, Fair Value Measurements , to the accompanying consolidated financial statements. |
Concentrations of Credit Risk, Customers, and Suppliers | Concentrations of Credit Risk, Customers, and Suppliers Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, trade accounts receivable, and marketable securities, which consist of debt securities and equity securities. As of June 30, 2024, substantially all of the Company’s cash and cash equivalents were deposited in accounts at financial institutions, and amounts may exceed federally insured limits. Management believes that the Company is not exposed to significant credit risk due to the financial strength of the depository institutions in which its cash and cash equivalents are held. In certain periods, a small number of customers has accounted for a significant portion of the Company’s revenue. For the laboratory services business, aggregating customers under common control, one customer comprised of $ 16.9 million or 24 % of total revenue in the three months ended June 30, 2024 and $ 29.6 million or 22 % of the Company's revenue in the six months ended June 30, 2024. The same customer contributed $ 9.1 million or 13 % of the Company's revenue in the three months ended June 30, 2023 . No customer contributed more than 10 % of the Company's revenue in the six months ended June 30, 2023. One customer comprised 19 % of total accounts receivable, net, as of June 30, 2024, and 13 % of total accounts receivable, net, as of December 31, 2023. For the therapeutic development business, as of June 30, 2024 and December 31, 2023, there is no concentration risk, as there are no customers or revenue, as it does not have any commercialized or approved product candidates. The Company relies on a limited number of suppliers for certain laboratory substances used in the chemical reactions incorporated into its processes, referred to as reagents, as well as for the sequencers and various other equipment and materials it uses in its laboratory operations. In particular, the Company relies on a sole supplier for the next generation sequencers and associated reagents it uses to perform its genetic tests and as the sole provider of maintenance and repair services for these sequencers. The operations of the laboratory services business would be interrupted if it encountered delays or difficulties securing these reagents, sequencers, other equipment or materials or maintenance and repair services, which could occur for a variety of reasons, including if the Company needs a replacement or temporary substitute for any of its limited or sole suppliers and is not able to locate and make arrangements with an acceptable replacement or temporary substitute. The Company's development efforts could also be delayed or interrupted if is unable to procure items needed for its therapeutic development activities. The Company’s therapeutic development business also relies on ANP Technologies, Inc., or ANP, for certain laboratory services, equipment, tools, and drug intermediates in connection with research and development efforts. The Company believes there are currently only a few other manufacturers that are capable of supplying and servicing some of the equipment and other materials necessary for its laboratory operations, including collection kits, sequencers and various associated reagents. Equity Method Investments The Company uses the equity method to account for investments in entities that it does not control but in which it has the ability to exercise significant influence over operating and financial policies. The Company's 25 % interest in Boston Molecules, Inc. is accounted for using the equity method but the investment was reduced to zero in 2020 due to full impairment. The Company has not recorded any additional losses. |
Equity Method Investments | Equity Method Investments The Company uses the equity method to account for investments in entities that it does not control but in which it has the ability to exercise significant influence over operating and financial policies. The Company's 25 % interest in Boston Molecules, Inc. is accounted for using the equity method but the investment was reduced to zero in 2020 due to full impairment. The Company has not recorded any additional losses. |
Reportable Segment and Geographic Information | Reportable Segment and Geographic Information Reportable segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker, or CODM, in making decisions regarding resource allocation and assessing performance. The Company’s CODM is its Chief Executive Officer. The Company reports its business in two segments, a laboratory services business and a therapeutic development business. For further financial information about these segments, including information for each of the periods presented regarding revenue, operating income (loss), and other important information, see Note 7, Reportable Segment and Geographic Information . |
Foreign Currency Translation and Foreign Currency Transactions | Foreign Currency Translation and Foreign Currency Transactions The Company translates the assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Loss from these translations is recognized in foreign currency translation loss included in the accompanying Condensed Consolidated Statements of Comprehensive Income (Loss). The Company and its subsidiaries that use the U.S. dollar as their functional currency remeasure monetary assets and liabilities at exchange rates in effect at the end of each period, whereas reagents and supplies, property and nonmonetary assets and liabilities are measured at historical rates. Gain or loss from these remeasurements was not significant for the three and six months ended June 30, 2024 and 2023 . |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) consists of net unrealized gain (loss) on available-for-sale debt securities, net of tax, and foreign currency translation adjustments from the Company's subsidiaries not using the U.S. dollar as their functional currency. Reclassification from other comprehensive income (loss) to net loss was $ 0.3 million and $ 0.9 million in the three and six months ended June 30, 2024, respectively, and there were no reclassifications from other comprehensive income (loss) to net loss in the three and six months ended June 30, 2023 . The tax effect related to net unrealized losses on available-for-sale debt securities was zero in the three and six months ended June 30, 2024 due to the valuation allowance in the current period that precludes the Company from recognizing the deferred tax benefit. The tax effects related to net unrealized gain (loss) on available-for-sale debt securities were $( 0.8 ) million and $ 1.2 million in the three and six months ended June 30, 2023 , respectively. |
Disaggregation of Revenue | Disaggregation of Revenue The Company classifies its customers into three payor types: (i) Insurance, (ii) Institutions, including hospitals, medical institutions, other laboratories, governmental bodies, municipalities, and large corporations, or (iii) Patients who pay directly. The Company believes these classifications best depict how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors. The following table summarizes revenue from contracts with customers by payor type: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Revenue by payor Institutional $ 38,950 $ 34,082 $ 72,554 $ 65,074 Insurance 31,100 33,061 61,143 67,612 Patient 978 710 1,816 1,335 Total revenue $ 71,028 $ 67,853 $ 135,513 $ 134,021 During three and six months ended June 30, 2024, the Company experienced a change in estimate related to variable consideration. $ 0.6 million and $ 1.8 million variable consideration were recognized in the three and six months ended June 30, 2024, respectively, that related to COVID-19 tests completed in the prior periods due to the recent collection efforts, which was included as revenue from insurance in the table above. The Company estimates variable consideration using the expected value method. Any changes in variable consideration estimates that affect transactions are accounted for on a cumulative catch-up basis. There was no material variable consideration recognized in the three and six months ended June 30, 2023. Contract Balances Receivables from contracts with customers - Receivables from contracts with customers are included within trade accounts receivable on the Condensed Consolidated Balance Sheets. Net receivable from Insurance and Institutional customers represented 44 % and 56 % , respectively, as of June 30, 2024, and 39 % and 61 % , respectively, as of December 31, 2023. Contracts assets and liabilities - Contract assets from contracts with customers associated with contract execution and certain costs to fulfill a contract are included in other current assets in the accompanying Condensed Consolidated Balance Sheets. The Company did no t have any contract assets as of June 30, 2024 and December 31, 2023. Contract liabilities are recorded when the Company receives payment prior to completing its obligation to transfer goods or services to a customer. Contract liabilities are included in the current liabilities in Condensed Consolidated Balance Sheets. Revenues of $ 0.4 million and $ 1.2 million were recognized for the three and six months ended June 30, 2024, respectively, and $ 0.1 million and $ 1.7 million were recognized for the three and six months ended June 30, 2023 , respectively, related to contract liabilities at the beginning of the respective periods. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company evaluates all Accounting Standards Updates, or ASUs, issued by the Financial Accounting Standards Board, or FASB, for consideration of their applicability. ASUs not included in the Company’s disclosures were assessed and determined to be either not applicable or are not expected to have a material impact on the Company’s condensed consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segments. This update improves reportable segment disclosure requirements and requires enhanced disclosures related to significant segment expenses regularly provided to the CODM, the amount for other segment items with descriptions of the composition, segment profit or loss, and clarification on if the CODM uses more than one measurement of a segment's profit or loss in assessing segment performance and deciding how to allocate resources. Amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the impacts of this amendment on the consolidated financial statements and related disclosure. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures. The update requires more detailed information on certain income tax disclosures including the income tax rate reconciliation and income taxes paid. Amendments in this update are effective for annual periods beginning December 15, 2024 for public entities, and early adoption is permitted. The Company is currently evaluating the impacts of this amendment on the consolidated financial statements and related disclosure. The Company does not expect that any other recently issued accounting guidance will have a significant effect on its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Roll-Forward for Allowance for Credit Losses | The roll-forward for the allowance for credit losses for the six months ended June 30, 2024, dollars in thousands, is as follows: Allowance for credit losses at beginning of year $ 25,226 Current period gain ( 4,157 ) Write-downs ( 2,855 ) Recoveries of amounts previously charged off 7,093 Allowance for credit losses as of June 30, 2024 $ 25,307 |
Accounting Standards Update 2014-09 | |
Summary of Revenue from Contracts with Customers by Payor Type | The following table summarizes revenue from contracts with customers by payor type: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Revenue by payor Institutional $ 38,950 $ 34,082 $ 72,554 $ 65,074 Insurance 31,100 33,061 61,143 67,612 Patient 978 710 1,816 1,335 Total revenue $ 71,028 $ 67,853 $ 135,513 $ 134,021 |
Equity and Debt Securities (Tab
Equity and Debt Securities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Equity and Debt Securities | The Company’s equity and debt securities consisted of the following: June 30, 2024 Amortized Unrealized Unrealized Aggregate (in thousands) Equity securities: Long-term Preferred stock of privately held company $ 15,000 $ — $ — $ 15,000 Total equity securities 15,000 — — 15,000 Available-for-sale debt securities Short-term U.S. government debt securities 98,931 2 ( 588 ) 98,345 U.S. agency debt securities 77,972 — ( 674 ) 77,298 U.S. treasury bills 51,651 — ( 5 ) 51,646 Corporate debt securities 13,325 — ( 188 ) 13,137 Money market accounts 55,067 — — 55,067 Municipal bonds 6,189 — ( 20 ) 6,169 Less: Cash equivalents ( 55,067 ) — — ( 55,067 ) Total debt securities due within 1 year 248,068 2 ( 1,475 ) 246,595 After 1 year through 5 years U.S. government debt securities 348,055 147 ( 2,784 ) 345,418 U.S. agency debt securities 142,196 — ( 1,511 ) 140,685 Corporate debt securities 36,518 — ( 560 ) 35,958 Municipal bonds 2,888 2 ( 14 ) 2,876 Yankee debt securities 501 — ( 37 ) 464 Redeemable preferred stock investment 20,000 438 — 20,438 Total debt securities due after 1 year through 5 years 550,158 587 ( 4,906 ) 545,839 After 5 years through 10 years Municipal bonds 765 1 ( 4 ) 762 Total debt securities due after 5 years through 10 years 765 1 ( 4 ) 762 Total available-for-sale debt securities 798,991 590 ( 6,385 ) 793,196 Total equity and debt securities $ 813,991 $ 590 $ ( 6,385 ) $ 808,196 December 31, 2023 Amortized Unrealized Unrealized Aggregate (in thousands) Equity securities: Long-term Preferred stock of privately held company $ 15,000 $ — $ — $ 15,000 Total equity securities 15,000 — — 15,000 Available-for-sale debt securities Short-term U.S. government debt securities 119,739 8 ( 1,765 ) 117,982 U.S. agency debt securities 72,310 — ( 1,414 ) 70,896 U.S. treasury bills 69,214 36 — 69,250 Corporate debt securities 63,810 — ( 792 ) 63,018 Money market accounts 38,291 — — 38,291 Municipal bonds 5,557 1 ( 23 ) 5,535 Less: Cash equivalents ( 38,291 ) — — ( 38,291 ) Total debt securities due within 1 year 330,630 45 ( 3,994 ) 326,681 After 1 year through 5 years U.S. government debt securities 247,104 1,262 ( 578 ) 247,788 U.S. agency debt securities 156,150 161 ( 490 ) 155,821 Corporate debt securities 12,885 — ( 765 ) 12,120 Municipal bonds 6,337 2 ( 48 ) 6,291 Yankee debt securities 752 — ( 60 ) 692 Redeemable preferred stock investment 20,000 438 — 20,438 Total debt securities due after 1 year through 5 years 443,228 1,863 ( 1,941 ) 443,150 After 5 years through 10 years Municipal bonds 868 1 ( 10 ) 859 Total debt securities due after 5 years through 10 years 868 1 ( 10 ) 859 Total available-for-sale debt securities 774,726 1,909 ( 5,945 ) 770,690 Total equity and debt securities $ 789,726 $ 1,909 $ ( 5,945 ) $ 785,690 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Information about Financial Assets Measured at Fair Value on Recurring Basis Based on Three-Tier Fair Value Hierarchy | The following tables present information about the Company’s financial assets measured at fair value on a recurring basis, based on the above three-tier fair value hierarchy: June 30, 2024 Total Level 1 Level 2 Level 3 (in thousands) Equity securities, debt securities and cash equivalents: U.S. government debt securities $ 443,763 $ — $ 443,763 $ — U.S. agency debt securities 217,983 — 217,983 — Money market accounts 55,067 55,067 — — U.S. treasury bills 51,646 51,646 — — Corporate debt securities 49,095 — 49,095 — Redeemable preferred stock investment 20,438 — — 20,438 Preferred stock of privately held company 15,000 — — 15,000 Municipal bonds 9,807 — 9,807 — Yankee debt securities 464 — 464 — Total equity securities, debt securities and cash equivalents $ 863,263 $ 106,713 $ 721,112 $ 35,438 December 31, 2023 Total Level 1 Level 2 Level 3 (in thousands) Equity securities, debt securities and cash equivalents: U.S. government debt securities $ 365,770 $ — $ 365,770 $ — U.S. agency debt securities 226,717 — 226,717 — Corporate debt securities 75,138 — 75,138 — U.S. treasury bills 69,250 69,250 — — Money market accounts 38,291 38,291 — — Redeemable preferred stock investment 20,438 — — 20,438 Preferred stock of privately held company 15,000 — — 15,000 Municipal bonds 12,685 — 12,685 — Yankee debt securities 692 — 692 — Total equity securities, debt securities and cash equivalents $ 823,981 $ 107,541 $ 681,002 $ 35,438 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Major Classes of Fixed Assets | Major classes of fixed assets consisted of the following: Useful Lives June 30, 2024 December 31, 2023 (in thousands) Medical lab equipment 5 months to 12 Years $ 54,152 $ 56,025 Building improvements 6 months to 39 Years 16,383 7,748 Building 39 Years 15,923 9,781 Computer software 1 to 5 Years 8,039 7,982 Computer hardware 1 to 5 Years 6,882 6,805 Aircraft 7 Years 6,400 6,400 Leasehold improvements Shorter of lease term or estimated useful life 5,556 11,222 Furniture and fixtures 1 to 5 Years 3,491 3,860 Land improvements 5 to 15 Years 904 904 Automobile 3 to 7 Years 450 445 General equipment 3 to 5 Years 108 115 Land 12,675 8,800 Assets not yet placed in service 7,842 15,010 Total 138,805 135,097 Less: Accumulated depreciation ( 45,437 ) ( 51,633 ) Fixed assets, net $ 93,368 $ 83,464 |
Other Significant Balance She_2
Other Significant Balance Sheet Accounts (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Other Current Assets | Other current assets consisted of the following: June 30, 2024 December 31, 2023 (in thousands) Prepaid income taxes $ 9,363 $ 12,675 Prepaid expenses 7,294 7,744 Reagents and supplies 7,026 5,827 Marketable securities interest receivable 5,917 4,994 Other receivable 1,225 1,319 Total $ 30,825 $ 32,559 |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following: June 30, 2024 December 31, 2023 (in thousands) Accrued legal liabilities $ 7,026 $ 7,026 Payroll liabilities 6,024 5,741 Vacation accrual 4,134 3,543 Other accrued liabilities 3,738 4,215 Accrued bonus and commission 3,215 6,255 Operating lease liabilities - short term 2,288 3,957 Total $ 26,425 $ 30,737 |
Schedule of Other Long-Term Liabilities | Other long-term liabilities consisted of the following: June 30, 2024 December 31, 2023 (in thousands) Operating lease liabilities, long term $ 7,155 $ 7,147 Other long-term liabilities 4,749 4,973 Notes payable, long term 2,493 2,964 Total $ 14,397 $ 15,084 |
Reportable Segment and Geogra_2
Reportable Segment and Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Information Regarding Operations and Assets for Operating Segments | Information regarding the Company’s operations and assets for its reportable segments as well as geographic information are as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Revenue: Laboratory services: Precision diagnostics $ 43,144 $ 31,935 $ 80,590 $ 59,840 Anatomic pathology 23,431 27,390 46,538 53,801 BioPharma services 3,612 7,771 6,268 16,191 COVID-19 841 757 2,117 4,189 Total laboratory services 71,028 67,853 135,513 134,021 Therapeutic development — — — — Total $ 71,028 $ 67,853 $ 135,513 $ 134,021 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Loss before income taxes: Operating loss Laboratory services $ ( 11,823 ) $ ( 16,282 ) $ ( 28,577 ) $ ( 37,885 ) Therapeutic development ( 7,083 ) ( 3,516 ) ( 12,127 ) ( 6,737 ) Total operating loss ( 18,906 ) ( 19,798 ) ( 40,704 ) ( 44,622 ) Interest and other income, net 7,692 5,098 15,317 8,873 Loss before income taxes $ ( 11,214 ) $ ( 14,700 ) $ ( 25,387 ) $ ( 35,749 ) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Depreciation and amortization: Laboratory services $ 5,979 $ 6,146 $ 12,468 $ 12,866 Therapeutic development 174 166 348 325 Total $ 6,153 $ 6,312 $ 12,816 $ 13,191 June 30, 2024 December 31, 2023 (in thousands) Assets: Laboratory services $ 1,143,531 $ 1,146,192 Therapeutic development 88,708 89,136 Total $ 1,232,239 $ 1,235,328 |
Summary of Revenue by Geographic Region | Geographic distribution of revenue: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Revenue: United States $ 64,194 $ 63,051 $ 122,044 $ 125,113 Foreign China 2,477 2,694 6,581 4,782 Other countries 4,357 2,108 6,888 4,126 Total foreign 6,834 4,802 13,469 8,908 Total $ 71,028 $ 67,853 $ 135,513 $ 134,021 |
Summary of Property, Plant and Equipment, Net by Geographic Distribution | Geographic distribution of property, plant and equipment, net: June 30, 2024 December 31, 2023 (in thousands) Fixed assets: United States $ 88,715 $ 77,938 Foreign 4,653 5,526 Total $ 93,368 $ 83,464 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Operating and Finance Lease Right-of-Use Asset, Short-term Lease Liabilities, and Long-term Lease Liabilities | The operating and finance lease right-of-use asset, short-term lease liabilities, and long-term lease liabilities as of June 30, 2024 and December 31, 2023 were as follows: June 30, 2024 December 31, 2023 (in thousands) Operating lease ROU asset, net $ 9,186 $ 10,838 Operating lease liabilities, short term $ 2,288 $ 3,957 Operating lease liabilities, long term $ 7,155 $ 7,147 Finance lease ROU asset, net $ 1,037 $ 1,316 Finance lease liabilities, short term $ 492 $ 544 Finance lease liabilities, long term $ 535 $ 760 |
Schedule of Operating and Finance Lease Expenses | The following were operating and finance lease expenses: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Operating lease cost $ 1,348 $ 1,834 $ 2,977 $ 3,536 Finance lease cost: Amortization of ROU assets 136 243 273 486 Interest on lease liabilities 11 25 23 52 Short-term lease cost 322 506 638 1,007 Total lease cost $ 1,817 $ 2,608 $ 3,911 $ 5,081 |
Schedule of Supplemental Information Related to Operating and Finance Leases | Supplemental information related to operating and finance leases were the following: June 30, 2024 Weighted-average remaining lease term, operating leases 5.31 years Weighted-average discount rate, operating leases 4.53 % Weighted-average remaining lease term, finance lease 2.28 years Weighted-average discount rate, finance lease 3.61 % |
Schedule of Maturity Analysis of Operating and Finance Lease Liabilities using Undiscounted Cash Flows on an Annual Basis | The following is a maturity analysis of operating and finance lease liabilities using undiscounted cash flows on an annual basis with renewal periods included: Operating Leases Finance Lease (in thousands) Year Ending December 31, 2024 (remaining 6 months) $ 1,389 $ 235 2025 2,547 468 2026 1,974 366 2027 1,886 — 2028 712 — 2029 514 — Thereafter 1,890 — Total lease payments 10,912 1,069 Less imputed interest ( 1,469 ) ( 42 ) Total $ 9,443 $ 1,027 |
Schedule of Future Fixed Lease Payments from Tenants for All Noncancelable Operating Leases | Future lease payments from tenants as of June 30, 2024 are not significant. |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Equity-Based Compensation | The Company has included equity-based compensation expense as part of cost of revenue and operating expenses in the accompanying Condensed Consolidated Statements of Operations as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Cost of revenue $ 1,999 $ 2,359 $ 4,008 $ 4,753 Research and development 4,136 3,670 7,980 7,118 Selling and marketing 1,002 1,094 2,052 2,455 General and administrative 4,498 3,200 9,113 6,262 Total $ 11,635 $ 10,323 $ 23,153 $ 20,588 |
Loss per Share (Tables)
Loss per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Basic and Diluted Loss per Share Computations | The following table presents the calculation of basic and diluted loss per share for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Net loss attributable to Fulgent $ ( 8,710 ) $ ( 11,229 ) $ ( 22,172 ) $ ( 26,569 ) Weighted-average common shares - outstanding, basic 30,098 29,813 29,933 29,675 Weighted-average common shares - outstanding, diluted 30,098 29,813 29,933 29,675 Loss per share: Basic $ ( 0.29 ) $ ( 0.38 ) $ ( 0.74 ) $ ( 0.90 ) Diluted $ ( 0.29 ) $ ( 0.38 ) $ ( 0.74 ) $ ( 0.90 ) |
Anti-dilutive Securities Excluded from Calculation of Diluted Loss per Share | The following securities have been excluded from the calculation of diluted loss per share because their effect would have been anti-dilutive due to the Company's net loss position: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Stock options 228 210 228 211 Restricted stock units 2,057 1,274 2,057 1,232 Contingently issuable shares — 371 — 371 |
Goodwill and Acquisition-Rela_2
Goodwill and Acquisition-Related Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Carrying Amount of Goodwill | There was no change in the carrying amount in the six months ended June 30, 2024. Goodwill, net, as of June 30, 2024 and December 31, 2023 by reporting unit was as follows: June 30, 2024 December 31, 2023 (in thousands) Goodwill, net: Laboratory services $ — $ — Therapeutic development 22,055 22,055 Total $ 22,055 $ 22,055 |
Summaries of Goodwill and Acquisitions-Related Intangibles Balances | Summaries of intangible asset balances as of June 30, 2024 and December 31, 2023 were as follows: Weighted-Average Amortization Period June 30, 2024 December 31, 2023 (in thousands) Laboratory Services: Royalty-free technology 10 Years $ 5,091 $ 5,211 Less: accumulated amortization ( 1,612 ) ( 1,390 ) Royalty-free technology, net 3,479 3,821 Customer Relationships 13 Years 83,092 83,119 Less: accumulated amortization ( 15,827 ) ( 12,586 ) Customer relationships, net 67,265 70,533 Trade name 8 Years 3,790 3,790 Less: accumulated amortization ( 1,154 ) ( 906 ) Trade name, net 2,636 2,884 In-place lease intangible assets 5 Years 360 360 Less: accumulated amortization ( 151 ) ( 116 ) In-place lease intangible assets, net 209 244 Laboratory information system platform 5 Years 1,860 1,860 Less: accumulated amortization ( 1,085 ) ( 899 ) Laboratory information system platform, net 775 961 Purchased patent 10 Years 28 28 Less: accumulated amortization ( 9 ) ( 8 ) Purchased patent, net 19 20 Total 74,383 78,463 Therapeutic Development: In-process research & development n/a 64,590 64,590 Total 64,590 64,590 Total intangible assets, net $ 138,973 $ 143,053 |
Summary of Annual Amortization Expense For Acquisition-Related Intangibles | Based on the carrying value of finite-lived intangible assets recorded as of June 30, 2024, and assuming no subsequent impairment of the underlying assets, the annual amortization expense for intangible assets is expected to be as follows: Amounts (in thousands) Year Ending December 31, 2024 (remaining 6 months) $ 3,979 2025 7,959 2026 7,657 2027 7,198 2028 7,163 2029 6,906 Thereafter 33,521 Total $ 74,383 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Roll-Forward for Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Accounts Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for credit losses at beginning of year | $ 25,226 | |
Current period gain | (4,157) | $ (1,984) |
Write-downs | (2,855) | |
Recoveries of amounts previously charged off | 7,093 | |
Allowance for credit losses as of June 30, 2024 | $ 25,307 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 USD ($) Customer | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) Customer Segment | Jun. 30, 2023 USD ($) Customer | Dec. 31, 2023 USD ($) Segment | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Redeemable preferred stock investment | $ 20,438,000 | $ 20,438,000 | $ 20,438,000 | ||
Number of reporting segments | Segment | 2 | 1 | |||
Contract with customer liability, revenue recognized | 400,000 | $ 100,000 | $ 1,200,000 | $ 1,700,000 | |
Reclassification from other comprehensive income (loss) | 300,000 | $ 900,000 | |||
Unrealized gain (loss) | (100,000) | 500,000 | |||
Preferred stock, redemption date | Jul. 31, 2027 | ||||
Tax effects related to unrealized holding gain (loss) on available-for-sale debt securities | 0 | (800,000) | $ 0 | $ 1,200,000 | |
Variable consideration | 600,000 | 1,800,000 | |||
Contract assets | $ 0 | $ 0 | $ 0 | ||
Boston Molecules, Inc. | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Ownership percentage | 25% | 25% | |||
Carrying value of equity | $ 0 | $ 0 | |||
Insurance Customer | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Percentage of net accounts receivable from contract | 44% | 44% | 39% | ||
Institutional Customer | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Percentage of net accounts receivable from contract | 56% | 56% | 61% | ||
Customer Concentration Risk | Revenue | Customer One | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of customers | Customer | 1 | 0 | |||
Revenues | $ 16,900,000 | $ 9,100,000 | $ 29,600,000 | ||
Concentration risk, percentage | 24% | 13% | 22% | ||
Customer Concentration Risk | Accounts Receivable | Customer One | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of customers | Customer | 1 | ||||
Concentration risk, percentage | 19% | 13% | |||
Minimum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible asset, useful life | 3 years | 3 years | |||
Minimum | Customer Concentration Risk | Revenue | Customer One | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 10% | ||||
Maximum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible asset, useful life | 14 years | 14 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Revenue from Contracts with Customers by Payor Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue from contracts with customers by payor type | $ 71,028 | $ 67,853 | $ 135,513 | $ 134,021 |
Accounting Standards Update 2014-09 | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from contracts with customers by payor type | 71,028 | 67,853 | 135,513 | 134,021 |
Accounting Standards Update 2014-09 | Clinical Institutional Contracts | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from contracts with customers by payor type | 38,950 | 34,082 | 72,554 | 65,074 |
Accounting Standards Update 2014-09 | Clinical Insurance Contracts | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from contracts with customers by payor type | 31,100 | 33,061 | 61,143 | 67,612 |
Accounting Standards Update 2014-09 | Clinical Patients Contracts | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from contracts with customers by payor type | $ 978 | $ 710 | $ 1,816 | $ 1,335 |
Equity and Debt Securities - Su
Equity and Debt Securities - Summary of Equity and Debt Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Less: Cash equivalents, Carrying Value | $ (55,067) | $ (38,291) |
Less: Cash equivalents, Fair Value | (55,067) | (38,291) |
Equity and debt securities, Amortized Cost Basis | 813,991 | 789,726 |
Equity and debt securities, Unrealized Gains | 590 | 1,909 |
Equity and debt securities, Unrealized Losses | (6,385) | (5,945) |
Equity and debt securities, Aggregate Fair Value | 808,196 | 785,690 |
Debt Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 798,991 | 774,726 |
Debt securities, Unrealized Gains | 590 | 1,909 |
Debt securities, Unrealized Losses | (6,385) | (5,945) |
Debt securities, Aggregate Fair Value | 793,196 | 770,690 |
Short-Term Marketable Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 248,068 | 330,630 |
Debt securities, Unrealized Gains | 2 | 45 |
Debt securities, Unrealized Losses | (1,475) | (3,994) |
Debt securities, Aggregate Fair Value | 246,595 | 326,681 |
Short-Term Marketable Securities | U.S. Government Debt Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 98,931 | 119,739 |
Debt securities, Unrealized Gains | 2 | 8 |
Debt securities, Unrealized Losses | (588) | (1,765) |
Debt securities, Aggregate Fair Value | 98,345 | 117,982 |
Short-Term Marketable Securities | Corporate Debt Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 13,325 | 63,810 |
Debt securities, Unrealized Losses | (188) | (792) |
Debt securities, Aggregate Fair Value | 13,137 | 63,018 |
Short-Term Marketable Securities | U.S. Agency Debt Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 77,972 | 72,310 |
Debt securities, Unrealized Losses | (674) | (1,414) |
Debt securities, Aggregate Fair Value | 77,298 | 70,896 |
Short-Term Marketable Securities | U.S. Treasury Bills | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 51,651 | 69,214 |
Debt securities, Unrealized Gains | 36 | |
Debt securities, Unrealized Losses | (5) | |
Debt securities, Aggregate Fair Value | 51,646 | 69,250 |
Short-Term Marketable Securities | Money Market Accounts | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 55,067 | 38,291 |
Debt securities, Aggregate Fair Value | 55,067 | 38,291 |
Short-Term Marketable Securities | Municipal Bonds | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 6,189 | 5,557 |
Debt securities, Unrealized Gains | 1 | |
Debt securities, Unrealized Losses | (20) | (23) |
Debt securities, Aggregate Fair Value | 6,169 | 5,535 |
Long Term Equity Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Marketable and non-marketable securities, Amortized Cost Basis | 15,000 | 15,000 |
Marketable and non-marketable securities, Aggregate Fair Value | 15,000 | 15,000 |
Long Term Equity Securities | Preferred Stock Of Privately Held Company | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Marketable and non-marketable securities, Amortized Cost Basis | 15,000 | 15,000 |
Marketable and non-marketable securities, Aggregate Fair Value | 15,000 | 15,000 |
Debt Securities due After 1 Year through 5 Years | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 550,158 | 443,228 |
Debt securities, Unrealized Gains | 587 | 1,863 |
Debt securities, Unrealized Losses | (4,906) | (1,941) |
Debt securities, Aggregate Fair Value | 545,839 | 443,150 |
Debt Securities due After 1 Year through 5 Years | U.S. Government Debt Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 348,055 | 247,104 |
Debt securities, Unrealized Gains | 147 | 1,262 |
Debt securities, Unrealized Losses | (2,784) | (578) |
Debt securities, Aggregate Fair Value | 345,418 | 247,788 |
Debt Securities due After 1 Year through 5 Years | Corporate Debt Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 36,518 | 12,885 |
Debt securities, Unrealized Losses | (560) | (765) |
Debt securities, Aggregate Fair Value | 35,958 | 12,120 |
Debt Securities due After 1 Year through 5 Years | U.S. Agency Debt Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 142,196 | 156,150 |
Debt securities, Unrealized Gains | 161 | |
Debt securities, Unrealized Losses | (1,511) | (490) |
Debt securities, Aggregate Fair Value | 140,685 | 155,821 |
Debt Securities due After 1 Year through 5 Years | Municipal Bonds | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 2,888 | 6,337 |
Debt securities, Unrealized Gains | 2 | 2 |
Debt securities, Unrealized Losses | (14) | (48) |
Debt securities, Aggregate Fair Value | 2,876 | 6,291 |
Debt Securities due After 1 Year through 5 Years | Yankee Debt Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 501 | 752 |
Debt securities, Unrealized Losses | (37) | (60) |
Debt securities, Aggregate Fair Value | 464 | 692 |
Debt Securities due After 1 Year through 5 Years | Redeemable Preferred Stock Investment | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 20,000 | 20,000 |
Debt securities, Unrealized Gains | 438 | 438 |
Debt securities, Aggregate Fair Value | 20,438 | 20,438 |
Debt Securities due After 5 Year through 10 Years | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 765 | 868 |
Debt securities, Unrealized Gains | 1 | 1 |
Debt securities, Unrealized Losses | (4) | (10) |
Debt securities, Aggregate Fair Value | 762 | 859 |
Debt Securities due After 5 Year through 10 Years | Municipal Bonds | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 765 | 868 |
Debt securities, Unrealized Gains | 1 | 1 |
Debt securities, Unrealized Losses | (4) | (10) |
Debt securities, Aggregate Fair Value | $ 762 | $ 859 |
Equity and Debt Securities - Ad
Equity and Debt Securities - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Schedule Of Available For Sale And Trading Securities [Line Items] | |||||
Gross unrealized loss | $ 6,400,000 | $ 5,900,000 | |||
Proceeds from sale of available-for-sale securities | $ 18,700,000 | 75,600,000 | |||
Realized gain available-for-sale securities | $ 0 | $ 0 | |||
Realized losses available-for-sale securities | $ 300,000 | $ 0 | $ 900,000 | $ 0 |
Fair Value Measurements - Infor
Fair Value Measurements - Information about Financial Assets Measured at Fair Value on Recurring Basis Based on Three-Tier Fair Value Hierarchy (Details) - Fair Value Measurements Recurring - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total equity securities, debt securities and cash equivalents | $ 863,263 | $ 823,981 |
U.S. Government Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 443,763 | 365,770 |
U.S. Agency Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 217,983 | 226,717 |
Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 49,095 | 75,138 |
U.S. Treasury Bills | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 51,646 | 69,250 |
Money Market Accounts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents fair value disclosure | 55,067 | 38,291 |
Redeemable Preferred Stock Investment | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 20,438 | 20,438 |
Preferred Stock Of Privately Held Company | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 15,000 | 15,000 |
Municipal Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 9,807 | 12,685 |
Yankee Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 464 | 692 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total equity securities, debt securities and cash equivalents | 106,713 | 107,541 |
Level 1 | U.S. Treasury Bills | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 51,646 | 69,250 |
Level 1 | Money Market Accounts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents fair value disclosure | 55,067 | 38,291 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total equity securities, debt securities and cash equivalents | 721,112 | 681,002 |
Level 2 | U.S. Government Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 443,763 | 365,770 |
Level 2 | U.S. Agency Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 217,983 | 226,717 |
Level 2 | Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 49,095 | 75,138 |
Level 2 | Municipal Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 9,807 | 12,685 |
Level 2 | Yankee Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 464 | 692 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total equity securities, debt securities and cash equivalents | 35,438 | 35,438 |
Level 3 | Redeemable Preferred Stock Investment | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 20,438 | 20,438 |
Level 3 | Preferred Stock Of Privately Held Company | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | $ 15,000 | $ 15,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | Jun. 30, 2024 | Jun. 30, 2023 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value assets, transfers between levels, amount | $ 0 | $ 0 |
Fixed Assets - Major Classes of
Fixed Assets - Major Classes of Fixed Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 138,805 | $ 135,097 |
Less: Accumulated depreciation | (45,437) | (51,633) |
Fixed assets, net | 93,368 | 83,464 |
Medical Lab Equipment | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 54,152 | 56,025 |
Medical Lab Equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 5 months | |
Medical Lab Equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 12 years | |
Building Improvements | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 16,383 | 7,748 |
Building Improvements | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 6 months | |
Building Improvements | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 39 years | |
Building | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 15,923 | 9,781 |
Useful life in years | 39 years | |
Computer Software | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 8,039 | 7,982 |
Computer Software | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 1 year | |
Computer Software | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 5 years | |
Computer Hardware | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 6,882 | 6,805 |
Computer Hardware | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 1 year | |
Computer Hardware | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 5 years | |
Aircraft | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 6,400 | 6,400 |
Useful life in years | 7 years | |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 5,556 | 11,222 |
Useful life in years | us-gaap:UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMember | |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 3,491 | 3,860 |
Furniture and Fixtures | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 1 year | |
Furniture and Fixtures | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 5 years | |
Land Improvements | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 904 | 904 |
Land Improvements | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 5 years | |
Land Improvements | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 15 years | |
Automobile | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 450 | 445 |
Automobile | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 3 years | |
Automobile | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 7 years | |
General Equipment | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 108 | 115 |
General Equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 3 years | |
General Equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 5 years | |
Land | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 12,675 | 8,800 |
Assets Not Yet Placed in Service | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 7,842 | $ 15,010 |
Fixed Assets - Additional Infor
Fixed Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense on fixed assets | $ 4 | $ 4.1 | $ 8.6 | $ 8.8 |
Other Significant Balance She_3
Other Significant Balance Sheet Accounts - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid income taxes | $ 9,363 | $ 12,675 |
Prepaid expenses | 7,294 | 7,744 |
Reagents and supplies | 7,026 | 5,827 |
Marketable securities interest receivable | 5,917 | 4,994 |
Other receivable | 1,225 | 1,319 |
Total | $ 30,825 | $ 32,559 |
Other Significant Balance She_4
Other Significant Balance Sheet Accounts - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued legal liabilities | $ 7,026 | $ 7,026 |
Payroll liabilities | 6,024 | 5,741 |
Vacation accrual | 4,134 | 3,543 |
Other accrued liabilities | 3,738 | 4,215 |
Accrued bonus and commission | 3,215 | 6,255 |
Operating lease liabilities - short term | 2,288 | 3,957 |
Total | $ 26,425 | $ 30,737 |
Other Significant Balance She_5
Other Significant Balance Sheet Accounts - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Other Significant Balance Sheet Accounts [Line Items] | ||
Accrued legal liabilities | $ 7,026 | $ 7,026 |
Voluntary Disclosure Process | ||
Other Significant Balance Sheet Accounts [Line Items] | ||
Accrued legal liabilities | $ 6,900 | $ 6,900 |
Other Significant Balance She_6
Other Significant Balance Sheet Accounts - Schedule of Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Operating lease liabilities, long term | $ 7,155 | $ 7,147 |
Other long-term liabilities | 4,749 | 4,973 |
Notes payable, long term | 2,493 | 2,964 |
Total | $ 14,397 | $ 15,084 |
Reportable Segment and Geogra_3
Reportable Segment and Geographic Information - Additional Information (Details) - Segment | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Segment Reporting [Abstract] | ||
Number of reporting segments | 2 | 1 |
Number of operating segments | 2 |
Reportable Segment and Geogra_4
Reportable Segment and Geographic Information - Schedule of Information Regarding Operations and Assets for Operating Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||||
Revenue | $ 71,028 | $ 67,853 | $ 135,513 | $ 134,021 | |
Operating loss | (18,906) | (19,798) | (40,704) | (44,622) | |
Interest and other income, net | 7,692 | 5,098 | 15,317 | 8,873 | |
Loss before income taxes | (11,214) | (14,700) | (25,387) | (35,749) | |
Depreciation and amortization | 6,153 | 6,312 | 12,816 | 13,191 | |
Assets | 1,232,239 | 1,232,239 | $ 1,235,328 | ||
Laboratory Services | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 71,028 | 67,853 | 135,513 | 134,021 | |
Operating loss | (11,823) | (16,282) | (28,577) | (37,885) | |
Depreciation and amortization | 5,979 | 6,146 | 12,468 | 12,866 | |
Assets | 1,143,531 | 1,143,531 | 1,146,192 | ||
Laboratory Services | Precision Diagnostics [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 43,144 | 31,935 | 80,590 | 59,840 | |
Laboratory Services | Anatomic Pathology [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 23,431 | 27,390 | 46,538 | 53,801 | |
Laboratory Services | BioPharma Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 3,612 | 7,771 | 6,268 | 16,191 | |
Laboratory Services | COVID-19 [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 841 | 757 | 2,117 | 4,189 | |
Therapeutic Development | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Operating loss | (7,083) | (3,516) | (12,127) | (6,737) | |
Depreciation and amortization | 174 | $ 166 | 348 | $ 325 | |
Assets | $ 88,708 | $ 88,708 | $ 89,136 |
Reportable Segment and Geogra_5
Reportable Segment and Geographic Information - Summary of Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 71,028 | $ 67,853 | $ 135,513 | $ 134,021 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 64,194 | 63,051 | 122,044 | 125,113 |
China | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 2,477 | 2,694 | 6,581 | 4,782 |
Other countries | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 4,357 | 2,108 | 6,888 | 4,126 |
Foreign | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 6,834 | $ 4,802 | $ 13,469 | $ 8,908 |
Reportable Segment and Geogra_6
Reportable Segment and Geographic Information - Summary of Property, Plant and Equipment, Net by Geographic Distribution (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Segment Reporting Information [Line Items] | ||
Fixed assets, net | $ 93,368 | $ 83,464 |
United States | ||
Segment Reporting Information [Line Items] | ||
Fixed assets, net | 88,715 | 77,938 |
Foreign | ||
Segment Reporting Information [Line Items] | ||
Fixed assets, net | $ 4,653 | $ 5,526 |
Debt, Commitments and Conting_2
Debt, Commitments and Contingencies - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2023 | |
Debt, Commitments and Contingencies [Line Items] | ||||||||
Notes payable, current portion | $ 412,000 | $ 412,000 | $ 1,183,000 | |||||
Notes payable, noncurrent portion | 2,493,000 | 2,493,000 | $ 2,964,000 | |||||
Non-cancelable purchase obligations | 45,700,000 | 45,700,000 | ||||||
Non-cancelable purchase obligations, payable within twelve months | 32,100,000 | 32,100,000 | ||||||
Purchase obligations, payable within next five years | 13,600,000 | 13,600,000 | ||||||
Estimated and recorded liability | 6,900,000 | 6,900,000 | ||||||
HRSA Uninsured Program Member | ||||||||
Debt, Commitments and Contingencies [Line Items] | ||||||||
Contingencies reimbursements | $ 548,900,000 | $ 548,900,000 | $ 548,900,000 | |||||
Xilong Scientific | FF Gene Biotech | ||||||||
Debt, Commitments and Contingencies [Line Items] | ||||||||
Interest expense | 0 | $ 0 | 0 | $ 0 | ||||
Installment Sale Contract | ||||||||
Debt, Commitments and Contingencies [Line Items] | ||||||||
Notes payable | 2,900,000 | 2,900,000 | ||||||
Notes payable, current portion | $ 400,000 | $ 400,000 | ||||||
Debt instrument, interest rate terms | The notes payable related to the installment sale are due in February 2030, and carry an interest rate of 1.08%. | |||||||
Debt instrument, interest rate | 1.08% | 1.08% | ||||||
Installment Sale Contract | Other Long-Term Liabilities | ||||||||
Debt, Commitments and Contingencies [Line Items] | ||||||||
Notes payable, noncurrent portion | $ 2,500,000 | $ 2,500,000 |
Leases - Additional Information
Leases - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2024 | |
Lessee Lease Description [Line Items] | |
Operating leases term of expiration | 2034-03 |
Finance leases term of expiration | 2026-12 |
Building | |
Lessee Lease Description [Line Items] | |
Remaining term including renewal options | 6 months |
Leases - Schedule of Operating
Leases - Schedule of Operating and Finance Lease Right-of-Use Asset, Short-term Lease Liabilities, and Long-term Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Operating lease ROU asset, net | $ 9,186 | $ 10,838 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other long-term assets | Other long-term assets |
Operating lease liabilities, short term | $ 2,288 | $ 3,957 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities | Accrued liabilities |
Operating lease liabilities, long term | $ 7,155 | $ 7,147 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities |
Finance lease ROU asset, net | $ 1,037 | $ 1,316 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other long-term assets | Other long-term assets |
Finance lease liabilities, short term | $ 492 | $ 544 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities | Accrued liabilities |
Finance lease liabilities, long term | $ 535 | $ 760 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities |
Leases - Schedule of Operatin_2
Leases - Schedule of Operating and Financing Lease Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||||
Operating lease cost | $ 1,348 | $ 1,834 | $ 2,977 | $ 3,536 |
Finance lease cost: | ||||
Amortization of ROU assets | 136 | 243 | 273 | 486 |
Interest on lease liabilities | 11 | 25 | 23 | 52 |
Short-term lease cost | 322 | 506 | 638 | 1,007 |
Total lease cost | $ 1,817 | $ 2,608 | $ 3,911 | $ 5,081 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Information Related to Operating and Finance Leases (Details) | Jun. 30, 2024 |
Leases [Abstract] | |
Weighted average remaining lease term - operating leases | 5 years 3 months 21 days |
Weighted average discount rate - operating leases | 4.53% |
Weighted average remaining lease term - finance lease | 2 years 3 months 10 days |
Weighted average discount rate - finance lease | 3.61% |
Leases - Schedule of Maturity A
Leases - Schedule of Maturity Analysis of Operating and Finance Lease Liabilities using Undiscounted Cash Flows on an Annual Basis (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Operating Leases | |
2024 (remaining 6 months) | $ 1,389 |
2025 | 2,547 |
2026 | 1,974 |
2027 | 1,886 |
2028 | 514 |
2029 | 712 |
Thereafter | 1,890 |
Total lease payments | 10,912 |
Less imputed interest | (1,469) |
Total | 9,443 |
Finance Lease | |
2024 (remaining 6 months) | 235 |
2025 | 468 |
2026 | 366 |
Total lease payments | 1,069 |
Less imputed interest | (42) |
Total | $ 1,027 |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of Equity-Based Compensation Expenses as Part of Cost of Revenue and Operating Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total Equity-based compensation expense | $ 11,635 | $ 10,323 | $ 23,153 | $ 20,588 |
Cost of Revenue | ||||
Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total Equity-based compensation expense | 1,999 | 2,359 | 4,008 | 4,753 |
Research and Development | ||||
Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total Equity-based compensation expense | 4,136 | 3,670 | 7,980 | 7,118 |
Selling and Marketing | ||||
Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total Equity-based compensation expense | 1,002 | 1,094 | 2,052 | 2,455 |
General and Administrative | ||||
Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total Equity-based compensation expense | $ 4,498 | $ 3,200 | $ 9,113 | $ 6,262 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Benefit from income taxes | $ (2,124) | $ (3,110) | $ (2,451) | $ (8,310) |
Effective income tax rate | 19% | 21% | 10% | 23% |
Income tax refund | $ 700 | $ 7,000 | $ 700 |
Loss per Share - Reconciliation
Loss per Share - Reconciliation of Basic and Diluted Loss Per Share Computations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Net loss attributable to Fulgent | $ (8,710) | $ (11,229) | $ (22,172) | $ (26,569) |
Weighted-average common shares—outstanding, basic | 30,098 | 29,813 | 29,933 | 29,675 |
Weighted-average effect of dilutive securities: | ||||
Weighted-average common shares—outstanding, diluted | 30,098 | 29,813 | 29,933 | 29,675 |
Loss per Share, basic | $ (0.29) | $ (0.38) | $ (0.74) | $ (0.9) |
Loss per Share, diluted | $ (0.29) | $ (0.38) | $ (0.74) | $ (0.9) |
Loss per Share - Anti-dilutive
Loss per Share - Anti-dilutive Securities Excluded from Calculation of Diluted Loss Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Employee Stock Option | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from calculation of diluted income per share | 228 | 210 | 228 | 211 |
Restricted Stock Units | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from calculation of diluted income per share | 2,057 | 1,274 | 2,057 | 1,232 |
Contingently Issuable Shares | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from calculation of diluted income per share | 371 | 371 |
Related Parties - Additional In
Related Parties - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | |||||
Due to related parties | $ 164,000 | ||||
ANP Technologies, Inc., | Ming Hsieh | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage | 20% | 20% | |||
AHMC Healthcare Inc. | Genetic Sequencing Services | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | $ 22,000 | $ 117,000 | |||
ANP Technologies Inc | |||||
Related Party Transaction [Line Items] | |||||
Other Liability, Current, Related Party, Type [Extensible Enumeration] | us-gaap:RelatedPartyMember | us-gaap:RelatedPartyMember | us-gaap:RelatedPartyMember | ||
Purchase of COVID-19 antigen rapid tests kits from related party | $ 300,000 | $ 500,000 | $ 1,000,000 | $ 1,500,000 |
Goodwill and Acquisition-Rela_3
Goodwill and Acquisition-Related Intangibles - Summary of Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Goodwill [Line Items] | ||
Goodwill, net | $ 22,055 | $ 22,055 |
Therapeutic Development | ||
Goodwill [Line Items] | ||
Goodwill, net | $ 22,055 | $ 22,055 |
Goodwill and Acquisition-Rela_4
Goodwill and Acquisition-Related Intangibles - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) Segment | Jun. 30, 2023 USD ($) | Dec. 31, 2023 Segment | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Number of operating segments | 2 | ||||
Number of reporting segments | 2 | 1 | |||
Amortization of intangible assets | $ | $ 1,990 | $ 1,962 | $ 3,980 | $ 3,930 |
Goodwill and Acquisition-Rela_5
Goodwill and Acquisition-Related Intangibles - Summaries of Goodwill and Acquisitions-Related Intangibles Balances (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Goodwill And Intangible Assets [Line Items] | ||
Acquisitions-related intangibles, net | $ 74,383 | |
Total intangible assets, net | 138,973 | $ 143,053 |
Laboratory Services | ||
Goodwill And Intangible Assets [Line Items] | ||
Acquisitions-related intangibles, net | 74,383 | 78,463 |
Laboratory Services | Royalty-Free Technology | ||
Goodwill And Intangible Assets [Line Items] | ||
Acquisitions-related intangibles, gross | 5,091 | 5,211 |
Less: accumulated amortization | (1,612) | (1,390) |
Acquisitions-related intangibles, net | $ 3,479 | 3,821 |
Weighted-Average Amortization Period | 10 years | |
Laboratory Services | Customer Relationships | ||
Goodwill And Intangible Assets [Line Items] | ||
Acquisitions-related intangibles, gross | $ 83,092 | 83,119 |
Less: accumulated amortization | (15,827) | (12,586) |
Acquisitions-related intangibles, net | $ 67,265 | 70,533 |
Weighted-Average Amortization Period | 13 years | |
Laboratory Services | Trade Name | ||
Goodwill And Intangible Assets [Line Items] | ||
Acquisitions-related intangibles, gross | $ 3,790 | 3,790 |
Less: accumulated amortization | (1,154) | (906) |
Acquisitions-related intangibles, net | $ 2,636 | 2,884 |
Weighted-Average Amortization Period | 8 years | |
Laboratory Services | In-Place Lease Intangible Assets | ||
Goodwill And Intangible Assets [Line Items] | ||
Acquisitions-related intangibles, gross | $ 360 | 360 |
Less: accumulated amortization | (151) | (116) |
Acquisitions-related intangibles, net | $ 209 | 244 |
Weighted-Average Amortization Period | 5 years | |
Laboratory Services | Laboratory Information System Platform | ||
Goodwill And Intangible Assets [Line Items] | ||
Acquisitions-related intangibles, gross | $ 1,860 | 1,860 |
Less: accumulated amortization | (1,085) | (899) |
Acquisitions-related intangibles, net | $ 775 | 961 |
Weighted-Average Amortization Period | 5 years | |
Laboratory Services | Purchased Patent | ||
Goodwill And Intangible Assets [Line Items] | ||
Acquisitions-related intangibles, gross | $ 28 | 28 |
Less: accumulated amortization | (9) | (8) |
Acquisitions-related intangibles, net | $ 19 | 20 |
Weighted-Average Amortization Period | 10 years | |
Therapeutic Development | ||
Goodwill And Intangible Assets [Line Items] | ||
Acquisitions-related intangibles, gross | $ 64,590 | 64,590 |
Therapeutic Development | In-Process Research & Development | ||
Goodwill And Intangible Assets [Line Items] | ||
Acquisitions-related intangibles, gross | $ 64,590 | $ 64,590 |
Goodwill and Acquisition-Rela_6
Goodwill and Acquisition-Related Intangibles - Summary of Annual Amortization Expense For Acquisition-Related Intangibles (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Finite Lived Intangible Assets [Line Items] | |
2024 (remaining 6 months) | $ 3,979 |
2025 | 7,959 |
2026 | 7,657 |
2027 | 7,198 |
2028 | 7,163 |
2029 | 6,906 |
Thereafter | 33,521 |
Acquisitions-related intangibles, net | $ 74,383 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | ||||||
Stock repurchase program, authorized amount | $ 250,000,000 | |||||
Number of shares repurchased | 0 | 0 | 10,000 | 0 | ||
Aggregate cost of shares repurchased | $ 200,000 | $ 225,000 | $ 200,000 | |||
Stock repurchase program, remaining authorized amount | $ 150,500,000 | $ 150,500,000 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Company matching contributions to the 401(k) plan | $ 1 | $ 0.8 | $ 1.9 | $ 1.8 |