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Other Financial Statement Information | 6 Months Ended
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Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Other Financial Statement Information | Other Financial Statement Information Available-for-sale Securities Available-for-sale securities consisted of the following (in thousands):
| June 30, 2023 |  |  | December 31, 2022 |  |
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | Fair Value Measurement
Cash equivalents: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds | $ | 315,407 |  |  | $ | — |  |  | $ | — |  |  | $ | 315,407 |  |  |  | $ | 163,184 |  |  | $ | — |  |  | $ | — |  |  | $ | 163,184 |  |  | Level 1
Marketable securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt securities | 20,209 |  |  | — |  |  | (234) |  |  | 19,975 |  |  |  | 153,794 |  |  | 4 |  |  | (2,768) |  |  | 151,030 |  |  | Level 2
Government debt securities | 42,611 |  |  | — |  |  | (623) |  |  | 41,988 |  |  |  | 54,136 |  |  | — |  |  | (1,247) |  |  | 52,889 |  |  | Level 2
Asset-backed securities | 3,591 |  |  | — |  |  | (48) |  |  | 3,543 |  |  |  | 6,424 |  |  | — |  |  | (105) |  |  | 6,319 |  |  | Level 2
Total available-for-sale securities | $ | 381,818 |  |  | $ | — |  |  | $ | (905) |  |  | $ | 380,913 |  |  |  | $ | 377,538 |  |  | $ | 4 |  |  | $ | (4,120) |  |  | $ | 373,422 |  |  |
The contractual maturities of marketable securities as of June 30, 2023 were as follows (in thousands):
|  | Fair Value
Due in one year or less |  | $ | 59,716 |
Due after one year to five years |  | 5,790 |
Total marketable securities |  | $ | 65,506 |
The Company incurred no material gross realized gains or losses from available-for-sales debt securities during the three months ended June 30, 2023 and three and six months ended June 30, 2022. During the six months ended June 30, 2023, the Company incurred gross realized losses of $1.7 million and no gross realized gains from the sale of available-for-sales debt securities. Realized gains (losses) on the sale of marketable securities are recorded in “Other expense, net” in the condensed consolidated statements of operations. The available-for-sale debt securities are subject to a periodic impairment review. For investments in an unrealized loss position, the Company determines whether a credit loss exists by considering information about the collectability of the instrument, current market conditions and reasonable and supportable forecasts of economic conditions. The Company recognizes an allowance for credit losses, up to the amount of the unrealized loss when appropriate, and writes down the amortized cost basis of the investment if it is more likely than not that the Company will be required or will intend to sell the investment before recovery of its amortized cost basis. Allowances for credit losses and write-downs are recognized in “Other expense, net,” and unrealized losses not related to credit losses are recognized in “Accumulated other comprehensive loss.” There are no allowances for credit losses for the periods presented. As of June 30, 2023, the gross unrealized losses on available-for-sale securities are related to market interest rate changes and not attributable to credit. Inventory Inventory was comprised of the following (in thousands):
| June 30, 2023 |  | December 31, 2022
Purchased materials | $ | 37,942 |  |  | $ | 34,497 |
Work in progress | 24,098 |  |  | 24,650 |
Finished goods | 21,647 |  |  | 22,482 |
Inventory | $ | 83,687 |  |  | $ | 81,629 |
Property and Equipment, Net Property and equipment, net consisted of the following (in thousands):
| June 30, 2023 |  | December 31, 2022
Land | $ | 36,801 |  |  | $ | 36,780 |
Building | 137,167 |  |  | — |
Laboratory equipment and machinery | 63,180 |  |  | 54,658 |
Computer equipment and software | 15,862 |  |  | 12,565 |
Furniture and fixtures | 10,847 |  |  | 9,642 |
Leasehold improvements | 92,783 |  |  | 91,518 |
Construction in progress | 13,801 |  |  | 152,995 |
Total property and equipment | 370,441 |  |  | 358,158 |
Less: accumulated depreciation and amortization | (85,528) |  |  | (68,830) |
Property and equipment, net | $ | 284,913 |  |  | $ | 289,328 |
Accrued Compensation and Related Benefits Accrued compensation and related benefits were comprised of the following as of the dates indicated (in thousands):
| June 30, 2023 |  | December 31, 2022
Accrued payroll and related costs | $ | 2,965 |  |  | $ | 2,052 |
Accrued bonus | 10,770 |  |  | 17,081 |
Accrued commissions | 5,286 |  |  | 5,143 |
Accrued acquisition-related compensation | — |  |  | 5,470 |
Other | 3,351 |  |  | 2,929 |
Accrued compensation and related benefits | $ | 22,372 |  |  | $ | 32,675 |
Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities were comprised of the following as of the dates indicated (in thousands):
| June 30, 2023 |  | December 31, 2022
Accrued legal and related costs | $ | 3,884 |  |  | $ | 3,102 |
Accrued license fee | — |  |  | 6,231 |
Accrued royalties for licensed technologies | 4,942 |  |  | 4,707 |
Accrued property and equipment | 9,094 |  |  | 26,750 |
Accrued professional services | 6,579 |  |  | 5,180 |
Product warranties | 3,941 |  |  | 3,023 |
Taxes payable | 2,323 |  |  | 4,079 |
Other | 3,325 |  |  | 6,707 |
Accrued expenses and other current liabilities | $ | 34,088 |  |  | $ | 59,779 |
Product Warranties Changes in the reserve for product warranties were as follows for the periods indicated (in thousands):
| Six Months Ended June 30,
| 2023 |  | 2022
Beginning of period | $ | 3,023 |  |  | $ | 994 |
Amounts charged to cost of revenue | 3,833 |  |  | 1,983 |
Repairs and replacements | (2,915) |  |  | (1,547) |
End of period | $ | 3,941 |  |  | $ | 1,430 |
Revenue and Deferred Revenue As of June 30, 2023, the aggregate amount of remaining performance obligations related to separately sold extended warranty service agreements, or allocated amounts for extended warranty service agreements bundled with sales of instruments, was $13.9 million, of which approximately $9.2 million is expected to be recognized to revenue in the next 12 months, with the remainder thereafter. The contract liabilities of $13.9 million and $11.0 million as of June 30, 2023 and December 31, 2022, respectively, consisted of deferred revenue related to extended warranty service agreements. The following revenue recognized for the periods were included in contract liabilities as of December 31, 2022 and December 31, 2021, respectively (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Deferred revenue recognized | $ | 1,856 |  |  | $ | 1,294 |  |  | $ | 3,963 |  |  | $ | 2,897 |
The following table represents revenue by source for the periods indicated (in thousands). Spatial products include the Company's Visium and Xenium products:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Instruments |  |  |  |  |  |  |
Chromium | $ | 12,859 |  |  | $ | 14,047 |  |  | $ | 24,485 |  |  | $ | 28,373 |
Spatial | 18,096 |  |  | 689 |  |  | 25,646 |  |  | 792 |
Total instruments revenue | 30,955 |  |  | 14,736 |  |  | 50,131 |  |  | 29,165 |
Consumables |  |  |  |  |  |  |
Chromium | 100,794 |  |  | 91,048 |  |  | 201,890 |  |  | 182,327 |
Spatial | 11,694 |  |  | 6,886 |  |  | 22,976 |  |  | 13,557 |
Total consumables revenue | 112,488 |  |  | 97,934 |  |  | 224,866 |  |  | 195,884 |
Services | 3,376 |  |  | 1,939 |  |  | 6,107 |  |  | 4,056 |
Total revenue | $ | 146,819 |  |  | $ | 114,609 |  |  | $ | 281,104 |  |  | $ | 229,105 |
The following table presents revenue by geography based on the location of the customer for the periods indicated (in thousands):
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2023 |  | 2022 |  | 2023 |  | 2022
Americas |  |  |  |  |  |  |  |
United States |  | $ | 88,394 |  |  | $ | 69,373 |  |  | $ | 164,675 |  |  | $ | 126,814 |
Americas (excluding United States) |  | 3,149 |  |  | 1,515 |  |  | 5,664 |  |  | 3,761 |
Total Americas |  | 91,543 |  |  | 70,888 |  |  | 170,339 |  |  | 130,575 |
Europe, Middle East and Africa |  | 31,246 |  |  | 25,608 |  |  | 59,668 |  |  | 46,140 |
Asia-Pacific |  |  |  |  |  |  |  |
China¹ |  | 12,755 |  |  | 9,984 |  |  | 26,786 |  |  | 31,766 |
Asia-Pacific (excluding China) |  | 11,275 |  |  | 8,129 |  |  | 24,311 |  |  | 20,624 |
Total Asia-Pacific |  | 24,030 |  |  | 18,113 |  |  | 51,097 |  |  | 52,390 |
Total Revenue |  | $ | 146,819 |  |  | $ | 114,609 |  |  | $ | 281,104 |  |  | $ | 229,105 |
1 Includes Hong Kong effective from the first quarter of 2023. Comparative periods have been adjusted for this inclusion.

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