Balance Sheet Components

3 Months Ended

Mar. 31, 2023

Balance Sheet Related Disclosures [Abstract]

Goodwill

Goodwill was $699.7 million and $695.9 million as of March 31, 2023 and December 31, 2022, respectively. The changes in the carrying amounts of goodwill during the three months ended March 31, 2023 were due to foreign currency translation. 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):


	March 31, 2023						December 31, 2022						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	$	(8,533)	$	7,467	$	16,000	$	(8,267)	$	7,733	7
Prosigna product technology	4,120		(915)		3,205		4,120		(847)		3,273		11
Prosigna customer relationships	2,430		(1,620)		810		2,430		(1,499)		931		1
nCounter Dx license	46,880		(10,418)		36,462		46,880		(9,636)		37,244		11
LymphMark product technology	990		(471)		519		990		(436)		554		4
Decipher product technology	90,000		(18,484)		71,516		90,000		(16,234)		73,766		8
Decipher trade names	4,000		(1,643)		2,357		4,000		(1,443)		2,557		3
HalioDx developed technology	40,400		(7,001)		33,399		39,724		(5,899)		33,825		8
HalioDx customer relationships	4,680		(1,369)		3,311		4,602		(1,144)		3,458		5
HalioDx customer backlog	6,639		(2,759)		3,880		6,528		(2,303)		4,225		2
Total finite-lived intangibles	216,139		(53,213)		162,926		215,274		(47,708)		167,566		8.4
In-process research and development	7,300		—		7,300		7,300		—		7,300
Total intangible assets	$	223,439	$	(53,213)	$	170,226	$	222,574	$	(47,708)	$	174,866

Amortization of the finite-lived intangible assets is recognized on a straight-line basis. Amortization expense of $5.3 million and $5.5 million was recognized for the three months ended March 31, 2023 and 2022, respectively.

The estimated future aggregate amortization expense as of March 31, 2023 is as follows (in thousands of dollars):


Year Ending December 31,	Amounts
2023 remainder of year	$	16,037
2024	21,343
2025	20,215
2026	18,359
2027	17,752
Thereafter	69,220
Total	$	162,926

Supplies and Inventory

As of March 31, 2023 and December 31, 2022, supplies and inventory consisted of $10.0 million and $10.2 million, respectively, of lab supplies and reagents consumed in the performance of testing services, and $3.3 million and $4.1 million, respectively, of inventory related to raw materials consumed in the contract manufacturing process, as well as finished and semi-finished components used in the assembly of diagnostic kits related to product sales.

Accrued Liabilities

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


	March 31, 2023		December 31, 2022
Accrued compensation expenses	$	21,953	$	30,637
Accrued other	8,688		7,137
Total accrued liabilities	$	30,641	$	37,774