Other Financial Information

12 Months Ended

Dec. 31, 2023

Other Financial Information [Abstract]

Prepaid Expenses and Other Current Assets

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


	December 31,
	2023		2022
Diagnostic testing supplies	$	2,871	$	1,795
Prepaid product royalties	35		40
Prepaid maintenance and insurance contracts	1,860		2,072
Other prepaid expenses and other current assets	31		236
Prepaid expenses and other current assets	$	4,797	$	4,143

Property and Equipment

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


	December 31,
	2023		2022
Furniture and fixtures	$	98	$	98
Laboratory equipment	5,312		5,136
Computer equipment and software	2,185		1,482
Leasehold improvements	3,316		5,223
Construction in progress	59		1,382
Total property and equipment	10,970		13,321
Less: accumulated depreciation and amortization	(5,769)		(5,124)
Property and equipment, net	$	5,201	$	8,197

Depreciation and amortization expense for the years ended December 31, 2023 and 2022, was approximately $2.2 million and $1.6 million, respectively. At December 31, 2023 and 2022, the gross book value of assets under finance leases was $2.5 million and $2.8 million, respectively, and is classified in "Laboratory equipment" in the table above.

Loss on Lease Assignment

On October 24, 2023, the Company entered into an assignment and assumption (the Assignment and Assumption Agreement) of the Company’s previously executed lease agreement with Liberty Vista, LP (formerly known as Geiger Court, LLC) and Mindera Corporation (Mindera), pursuant to which the Company assigned to Mindera the lease of a building located adjacent to the Company's headquarters in Vista, CA. Under the terms of the Assignment and Assumption Agreement, Mindera assumed all obligations under the lease, effective October 31, 2023. As a result of the lease assignment, the Company derecognized the remaining balances related to the associated operating lease ROU asset of $0.7 million, operating lease liability of $0.8 million and leasehold improvements of $1.6 million, resulting in a $1.5 million loss on lease assignment. The loss was classified within selling, general and administrative expenses in the accompanying statements of operations.

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 impairment charge was classified within research and development expenses in the accompanying statements of operations.

During the year ended December 31, 2022, the Company also determined that a sustained decrease in its market capitalization constituted an indicator of impairment of goodwill 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 a goodwill 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,
	2023		2022
Accrued payroll and related expenses	$	4,738	$	2,355
Accrued interest	139		142
Accrued purchases of goods and services	720		803
Accrued royalties	463		514
Accrued clinical study activity	118		162
Finance lease obligations, current portion	490		700
Refund liability	302		445
Other accrued liabilities	561		226
Accrued and other current liabilities	$	7,531	$	5,347