Reportable Segment and Geographic Information

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(in thousands)
Revenue:
Laboratory services:
Precision diagnostics	$	43,582	$	36,691	$	124,172	$	96,531
Anatomic pathology		24,228		24,560		70,766		78,361
BioPharma services		3,933		4,496		10,201		20,687
COVID-19		—		18,940		2,117		23,129
Total laboratory services		71,743		84,687		207,256		218,708
Therapeutic development		—		—		—		—
Total	$	71,743	$	84,687	$	207,256	$	218,708

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
	(in thousands)
Loss before income taxes:
Operating (loss) income
Laboratory services	$	(11,396	)	$	3,565		$	(39,973	)	$	(34,320	)
Therapeutic development		(5,683	)		(3,351	)		(17,810	)		(10,088	)
Total operating loss		(17,079	)		214			(57,783	)		(44,408	)
Total other (expense) income, net		(1,453	)		6,646			13,872			15,519
(Loss) income before income taxes	$	(18,532	)	$	6,860		$	(43,911	)	$	(28,889	)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(in thousands)
Depreciation and amortization:
Laboratory services	$	5,751	$	6,244	$	18,219	$	19,110
Therapeutic development		169		175		517		500
Total	$	5,920	$	6,419	$	18,736	$	19,610

	September 30, 2024		December 31, 2023
	(in thousands)
Assets:
Laboratory services	$	1,145,471	$	1,146,192
Therapeutic development		88,292		89,136
Total	$	1,233,763	$	1,235,328

Geographic distribution of revenue:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(in thousands)
Revenue:
United States	$	65,703	$	78,974	$	189,052	$	204,087
Foreign
China		2,785		3,428		9,366		8,210
Other countries		3,255		2,285		8,838		6,411
Total foreign		6,040		5,713		18,204		14,621
Total	$	71,743	$	84,687	$	207,256	$	218,708

Geographic distribution of property, plant and equipment, net:

	September 30, 2024		December 31, 2023
	(in thousands)
Fixed assets:
United States	$	101,790	$	77,938
Foreign
China		4,880		5,526
Other countries		140		—
Total foreign		5,020		5,526
Total	$	106,810	$	83,464