Operating expense

12 Months Ended

Dec. 31, 2023

Analysis of income and expense [abstract]

Accounting policies

Research and development

Research and development costs consist of personnel and related expenses for technology, application, and product development, depreciation and amortization, laboratory supplies, consulting services, computer costs and data storage fees paid to hosting providers related to research and development and allocated overhead costs. These costs are stated net of government grants for research and development and innovation received as tax credits and net of capitalized costs.

Government grants for research and development and innovation received as tax credits

The Company receives government grants in France for research and development and innovation by way of tax credits. Total government grants for research and development and innovation recognized in the statement of loss amounts to $1.1 million, $1.3 million, $1.6 million for the years ended December 31, 2023, 2022, and 2021, respectively.

Selling and marketing costs

Selling and marketing costs consist of personnel and related expenses for the employees of the sales and marketing organization, costs of communications materials that are produced to generate greater awareness and utilization of the platform among customers, costs of third-party market research, costs related to transportation and distribution of our products, and allocated overhead costs. The Company also records increases to, reversals of, and write-offs of the allowance for expected credit losses to selling and marketing costs.

The Company pays sales commission to its employees for obtaining contracts. These costs are expensed as part of employee compensation in selling and marketing costs. They are not capitalized as contract costs as the commissions either represent bonuses payable for revenue earned in the period or have a service condition attached.

General and administrative costs

General and administrative costs consist of personnel and related expenses for our executive, accounting and finance, legal, quality, support and human resources functions, depreciation and amortization, professional services fees incurred by these functions, general corporate costs and allocated overhead costs, which include occupancy costs and information technology costs.

Operating expense by nature

The table presents operating expenses by nature (in USD thousands):


	For the year ended December 31,
	2023		2022		2021
Changes in inventories of finished goods and work in progress	$	145	$	47	$	568
Raw materials and consumables used	(17,504)		(13,341)		(9,650)
Employee benefit expenses	(60,323)		(59,333)		(53,802)
Social charges	(11,956)		(11,480)		(8,373)

Research tax credit	1,129		1,292		1,597
Share-based compensation	(15,242)		(13,613)		(8,514)
Depreciation	(5,508)		(3,791)		(2,517)
Amortization	(2,828)		(1,780)		(1,092)
Professional fees	(14,245)		(13,837)		(11,318)
Laboratory and office expenses	(6,279)		(6,635)		(5,333)
Travel	(3,087)		(3,217)		(1,576)
Marketing	(1,767)		(2,213)		(1,493)
Licenses	(4,235)		(3,949)		(2,021)
Less: capitalized software development costs ("Note 17 - Intangible assets”)	7,469		5,820		3,858
Other expense	(3,920)		(9,730)		(12,381)
Total	$	(138,151)	$	(135,760)	$	(112,047)

Depreciation and amortization have been charged in the following expense categories (in USD thousands):


	For the year ended December 31,
	2023				2022				2021
	Depreciation		Amortization		Depreciation		Amortization		Depreciation		Amortization
Cost of revenue	$	—	$	(2,099)	$	—	$	(1,133)	$	—	$	(483)
Research and development costs	(2,494)		—		(1,748)		—		(1,028)		—
Selling and marketing costs	(1,468)		—		(906)		—		(744)		—
General and administrative costs	(1,546)		(729)		(1,137)		(647)		(745)		(609)
Total	$	(5,508)	$	(2,828)	$	(3,791)	$	(1,780)	$	(2,517)	$	(1,092)

The table presents employee costs by function, which consists of “Employee benefit expenses”, “Social charges” and “Share-based compensation” from the operating expense table (in USD thousands):


	For the year ended December 31,
	2023		2022		2021
Research and development costs	31,280		29,169		23,899
Selling and marketing costs	20,174		20,216		21,659
General and administrative costs	36,067		35,041		25,131
Total	$	87,521	$	84,426	$	70,689