Balance Sheet Components

9 Months Ended

Sep. 30, 2021

Balance Sheet Components

Balance Sheet Components

6. Balance Sheet Components

Property and Equipment, net

The Company’s property and equipment consisted of the following:

		September 30,		December 31,
	Useful Life	2021		2020
		(in thousands)
Machinery and equipment	3-5 years	$	64,583	$	51,001
Furniture and fixtures	3 years		1,393		1,376
Computer equipment	3 years		2,772		2,428
Capitalized software held for internal use	3 years		8,776		7,417
Leasehold improvements	Lesser of useful life or lease term		15,351		14,810
Construction-in-process			24,732		6,370
			117,607		83,402
Less: Accumulated depreciation and amortization			(58,314)		(50,054)
Total Property and Equipment, net		$	59,293	$	33,348

All of the Company’s long-lived assets are located in the United States.

During the nine months ended September 30, 2021, the increase in net property and equipment was due to purchases of new equipment for the Company’s laboratories located in Texas and California to expand testing capabilities, offset by depreciation expense of $8.3 million recorded in the nine months ended September 30, 2021. The Company did not incur an impairment charge during the nine months ended September 30, 2021.

Accrued Compensation

The Company’s accrued compensation consisted of the following:

	September 30,		December 31,
	2021		2020
	(in thousands)
Accrued paid time off	$	2,472	$	2,260
Accrued commissions		10,950		12,686
Accrued bonuses		12,275		9,635
Other accrued compensation		9,634		5,790
Total accrued compensation	$	35,331	$	30,371

Other Accrued Liabilities

The Company’s other accrued liabilities consisted of the following:

	September 30,		December 31,
	2021		2020
	(in thousands)
Reserves for refunds to insurance carriers	$	15,879	$	17,366
Accrued charges for third-party testing		17,690		5,141
Testing and laboratory materials from suppliers		6,513		2,720
Marketing and corporate affairs		6,152		3,325
Legal, audit and consulting fees		15,215		4,189
Accrued shipping charges		399		1,604
Sales tax payable		1,758		1,723
Accrued third-party service fees		3,363		2,355
Clinical trials and studies		6,282		2,353
Operating lease liabilities, current portion		6,922		7,300
Fixed asset purchases		4,957		1,691
Other accrued interest		2,695		1,078
Other accrued expenses		8,661		9,562
Total other accrued liabilities	$	96,486	$	60,407

Reserves for refunds to insurance carriers include overpayments from and amounts to be refunded to insurance carriers, and additional amounts that the Company estimates for potential refund requests during the period. When the Company releases these previously accrued amounts, they are recognized as product revenues in the statements of operations and comprehensive loss.

The following table summarizes the reserve balance and activities for refunds to insurance carriers for the nine months ended September 30, 2021:

	September 30,		September 30,
	2021		2020
	(in thousands)
Beginning balance	$	17,366	$	9,410
Additional reserves		11,776		11,912
Refunds to carriers		(8,664)		(5,244)
Reserves released to revenue		(4,599)		(2,756)
Ending balance	$	15,879	$	13,322