Other Financial Information

12 Months Ended

Dec. 31, 2022

Other Financial Information [Abstract]

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following (in thousands):


	December 31,
	2022		2021
Diagnostic testing supplies	$	1,795	$	1,091
Prepaid product royalties	40		49
Prepaid maintenance and insurance contracts	2,072		2,008
Other prepaid and other current assets	236		490
Prepaid and other current assets	$	4,143	$	3,638

Property and Equipment

Property and equipment consist of the following (in thousands):


	December 31,
	2022		2021
Furniture and fixtures	$	98	$	83
Laboratory equipment	5,136		4,361
Computer equipment and software	1,482		1,206
Leasehold improvements	5,223		1,151
Construction in progress	1,382		1,855
Total property and equipment	13,321		8,656
Less: accumulated depreciation and amortization	(5,124)		(3,884)
Property and equipment, net	$	8,197	$	4,772

Depreciation and amortization expense for the years ended December 31, 2022 and 2021, was approximately $1.6 million and $0.9 million, respectively. At December 31, 2022 and 2021, the gross book value of assets under finance leases was $2.8 million and $2.5 million, respectively, and is classified in "Laboratory equipment" in the table above.

Impairment of Long-Lived Assets and Goodwill

During the year ended December 31, 2022, the Company recorded an impairment charge of $0.4 million related to previously capitalized equipment used in research and development activities that were halted in the fourth quarter of 2022. The Company based the fair values of these assets on their anticipated disposal values, which is considered a Level 3 measurement. The impairment charge was classified within research and development expenses in the accompanying statements of operations.

The Company determined that the sustained decrease in its market capitalization constituted an indicator of impairment and as a result, instead of performing a qualitative test, the Company chose to proceed directly to performing a quantitative test during the fourth quarter. The Company determined the fair value of the reporting unit using the discounted cash flow (DCF) method, which is considered a Level 3 measurement. In applying the DCF

method, cash flows are estimated for a five-year financial forecast developed by management. A terminal value, which represents the value of additional cash flows into perpetuity, is also calculated. Cash flows are then discounted to present value at a discount rate commensurate with their risk. Based on this analysis, the carrying value of the reporting unit was in excess of the fair value and the goodwill was fully impaired. During the year ended December 31, 2022, the Company recorded an impairment charge of $5.5 million.

The following table presents details of the Company's goodwill for the year ended December 31, 2022 (in thousands):


	Total
Balance as of December 31, 2021	$	5,506
Goodwill impairment	(5,506)
Balance as of December 31, 2022	$	—

Accrued and Other Current Liabilities

Accrued and other current liabilities consist of the following (in thousands):


	December 31,
	2022		2021
Accrued payroll and related expenses	$	2,355	$	4,048
Accrued interest	142		139
Accrued purchases of goods and services	803		510
Accrued royalties	514		180
Accrued clinical study activity	162		254
Finance lease obligations, current portion	700		587
Refund liability	445		—
Other accrued liabilities	226		1,108
Accrued and other current liabilities	$	5,347	$	6,826