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Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies and estimates used in the preparation of the unaudited condensed consolidated financial statements are described in the Company’s audited consolidated financial statements as of and for the year ended December 31, 2024, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the United States Securities and Exchange Commission (the “SEC”) on February 28, 2025.
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”), and follow the requirements of the SEC for interim reporting. As permitted under those rules, certain notes and other financial information that are normally required by U.S. GAAP can be condensed or omitted. These unaudited condensed consolidated financial statements have been prepared on the same basis as the Company’s annual consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments that are necessary for a fair statement of the Company’s financial information. The condensed consolidated balance sheet as of December 31, 2024 has been derived from audited consolidated financial statements as of that date but does not include all of the financial information required by U.S. GAAP for complete financial statements. Certain reclassifications have been made to prior period amounts to conform to current period presentations. Operating results for the three and six months ended June 30, 2025 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2025.
Immaterial Correction
As noted in Item 9-B of the Company's Form 10-K for the fiscal year ending December 31, 2024, as filed with the SEC on February 28, 2025, the Company corrected certain misstatements (which the Company determined were not material to the Company’s consolidated financial statements, individually or in the aggregate) in the comparative financial statements including the Condensed Consolidated Statement of Operations, Condensed Consolidated Statement of Comprehensive Loss, Condensed Consolidated Statement of Stockholders' Equity and Condensed Consolidated Statement of Cash Flows for the three and six months ended June 30, 2024 and applicable footnotes.
The following tables present a summary of the effects of the correction of the Company’s previously issued condensed consolidated financial statements for the three and six months ended June 30, 2024:
Condensed Consolidated Statements of Operations (unaudited)
Three Months Ended June 30, 2024
Six Months Ended June 30, 2024
(in thousands)
As Previously Reported
Adjustments
As Corrected
As Previously Reported
Adjustments
As Corrected
General and administrative
$27,678 $3,229 $30,907 $54,589 $6,458 $61,047 
Total operating expenses
96,372 3,229 99,601 187,758 6,458 194,216 
Loss from operations
(4,098)(3,229)(7,327)(23,435)(6,458)(29,893)
Loss before income taxes
(1,372)(3,229)(4,601)(18,114)(6,458)(24,572)
Net loss$(1,394)$(3,229)$(4,623)$(18,053)$(6,458)$(24,511)
Net loss per share
     Basic$(0.03)$(0.06)$(0.09)$(0.35)$(0.12)$(0.47)
     Diluted$(0.03)$(0.06)$(0.09)$(0.35)$(0.12)$(0.47)
Condensed Consolidated Statements of Comprehensive Loss (unaudited)
Three Months Ended June 30, 2024
Six Months Ended June 30, 2024
(in thousands)
As Previously Reported
Adjustments
As Corrected
As Previously Reported
Adjustments
As Corrected
Net loss$(1,394)$(3,229)$(4,623)$(18,053)$(6,458)$(24,511)
Comprehensive loss(1,250)(3,229)(4,479)(19,054)(6,458)(25,512)
Condensed Consolidated Statement of Stockholders' Equity (unaudited)
Six Months Ended June 30, 2024
(in thousands)
Additional Paid-in CapitalAccumulated DeficitTotal Stockholders' Equity
As Previously Reported
Balance at December 31, 2023$946,511 $(678,269)$261,328 
Employee stock-based compensation expense26,417 — 26,417 
Net loss— (18,053)(18,053)
Balance at June 30, 2024969,427 (696,844)264,669 
Adjustments
Employee stock-based compensation expense6,458 — 6,458 
Net loss— (6,458)(6,458)
As Corrected
Balance at December 31, 2023946,511 (678,269)261,328 
Employee stock-based compensation expense32,875 — 32,875 
Net loss— (24,511)(24,511)
Balance at June 30, 2024$975,885 $(703,302)$264,669 
Condensed Consolidated Statement of Cash Flows (unaudited)
Six Months Ended June 30, 2024
(in thousands)
As Previously Reported
Adjustments
As Corrected
Net loss$(18,053)$(6,458)$(24,511)
Stock-based compensation$26,514 $6,458 $32,972 
Use of Estimates
The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses in the unaudited condensed consolidated financial statements and accompanying notes. On an ongoing basis, management evaluates its estimates, including those related to transaction price estimates used for testing services revenue; accrued expenses for clinical studies; inventory valuation; the fair value of contingent consideration recorded in connection with a business combination or an asset acquisition; the grant date fair value assumptions used to estimate stock-based compensation expense; income taxes; impairment of long-lived assets and indefinite-lived assets (including goodwill); and legal contingencies. Actual results could differ from those estimates.
For the three and six months ended June 30, 2025, the Company reduced revenue by $3.8 million and $4.9 million, respectively, for tests performed in prior periods. The reductions reflect a change in estimate and constraint of variable consideration under ASC 606.
For the three and six months ended June 30, 2024, the Company recognized $13.2 million and $17.0 million, respectively, in revenue for tests performed in prior periods, as all performance obligations were satisfied at the time the contract was established.
Concentrations of Credit Risk and Other Risks and Uncertainties
For the three months ended June 30, 2025 and 2024, approximately 34% and 42%, respectively, of total revenue was derived from Medicare. For the six months ended June 30, 2025 and 2024, approximately 36% and 38%, respectively, of total revenue was derived from Medicare.
As of June 30, 2025 and December 31, 2024, approximately 27% of accounts receivable was due from Medicare. No other payer or customer represented more than 10% of accounts receivable at either June 30, 2025 or December 31, 2024.
Recent Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (ASU) No. 2023-09, Income Taxes (Topic 340): Improvements to Income Tax Disclosures, which requires annual disclosures in the rate reconciliation table to be presented using both percentages and reporting currency amounts, and this table must include disclosure of specific categories. Additional information will also be required for reconciling items that meet a quantitative threshold. The new guidance also requires enhanced disclosures of income taxes paid, including the amount of income taxes paid disaggregated by federal, state and foreign taxes and the amount of income taxes paid disaggregated by individual jurisdictions that exceed a quantitative threshold. The amendments should be applied on a prospective basis, but retrospective application is permitted. The amendments set forth in this ASU are effective for annual periods beginning after December 15, 2024 for public entities. This guidance will be effective for the Company’s annual disclosures for the fiscal year ending December 31, 2025. The Company is currently evaluating the potential effect that the updated standard will have on its financial statement disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures. This standard requires entities to disaggregate certain costs and expenses into specific categories and by relevant expense caption in the statement of operations. The standard is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. This guidance will be effective for the Company's annual disclosures for the fiscal year ending December 31, 2027 and for interim period disclosures beginning in the fiscal year ending December 31, 2028. The Company is currently evaluating the potential impact of the new standard on its financial statements and related disclosures.