Balance Sheet Components

9 Months Ended

Sep. 30, 2022

Balance Sheet Related Disclosures [Abstract]

Goodwill

Goodwill was $676.9 million and $707.9 million as of September 30, 2022 and December 31, 2021, respectively. The changes in the carrying amounts of goodwill during the nine months ended September 30, 2022 were due to foreign currency translation and measurement period adjustments. The Company has not recorded any impairment related to goodwill.

Intangible Assets, Net

Intangible assets include finite-lived product technology, customer relationships, licenses and trade names and indefinite-lived in-process research and development. Intangible assets consisted of the following (in thousands of dollars):


	September 30, 2022						December 31, 2021						Weighted Average Remaining Amortization Period (Years)
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Percepta product technology	$	16,000	$	(8,000)	$	8,000	$	16,000	$	(7,200)	$	8,800	7
Prosigna product technology	4,120		(778)		3,342		4,120		(572)		3,548		11
Prosigna customer relationships	2,430		(1,377)		1,053		2,430		(1,013)		1,417		1
nCounter Dx license	46,880		(8,855)		38,025		46,880		(6,511)		40,369		11
LymphMark product technology	990		(401)		589		990		(295)		695		4
Decipher product technology	90,000		(13,984)		76,016		90,000		(7,234)		82,766		8
Decipher trade names	4,000		(1,243)		2,757		4,000		(643)		3,357		3
HalioDx developed technology	36,367		(4,500)		31,867		45,640		(1,877)		43,763		9
HalioDx customer relationships	4,213		(861)		3,352		4,870		(352)		4,518		6
HalioDx customer backlog	5,976		(1,735)		4,241		6,908		(710)		6,198		2
Total finite-lived intangibles	210,976		(41,734)		169,242		221,838		(26,407)		195,431		8.9
In-process research and development	7,300		—		7,300		7,300		—		7,300
Total intangible assets	$	218,276	$	(41,734)	$	176,542	$	229,138	$	(26,407)	$	202,731

During the three months ended June 30, 2022, the Company concluded it had a triggering event requiring assessment of impairment for certain of its long-lived assets in conjunction with management’s decision to cease commercialization efforts related to the Company’s stand-alone Immunoscore Colon Dx commercial offering. As a result, the Company reviewed the long-lived assets for impairment and recorded a $3.3 million impairment charge associated with its HalioDx Immunoscore Colon Dx developed technology finite-lived intangible asset. The impairment is recorded within general and administrative expense on the condensed consolidated statement of operations for the nine months ended September 30, 2022. The impairment was assessed under an income approach estimating forecasted discounted cash flows. This method is consistent with the methods the Company employed in prior periods to value other long-lived assets.

Amortization of the finite-lived intangible assets is recognized on a straight-line basis. Amortization expense of $5.2 million and $5.0 million was recognized for the three months ended September 30, 2022 and 2021, respectively, and expense of $16.1 million and $10.5 million was recognized for the nine months ended September 30, 2022 and 2021, respectively.

The estimated future aggregate amortization expense as of September 30, 2022 is as follows (in thousands of dollars):


Year Ending December 31,	Amounts
2022 remainder of year	$	5,184
2023	20,735
2024	20,695
2025	19,635
2026	17,899
Thereafter	85,094
Total	$	169,242

Supplies and Inventory

As of September 30, 2022 and December 31, 2021, supplies and inventory consisted of $10.5 million and $8.2 million, respectively, of lab supplies and reagents consumed in the performance of testing services, and $3.3 million and $3.0 million, respectively, of inventory related to raw materials consumed in contract manufacturing process as well as finished diagnostic kits sourced from third parties related to product sales.

Accrued Liabilities

Accrued liabilities consisted of the following (in thousands of dollars):


	September 30, 2022		December 31, 2021
Accrued compensation expenses	$	25,732	$	30,792
Accrued other	6,405		8,683
Total accrued liabilities	$	32,137	$	39,475