0001274737-22-000075 | 10-Q/A | XBRL Viewer

Borrowings

6 Months Ended

Jun. 30, 2022

2017 Term Loan

In September 2017, the Company executed a term loan agreement (the 2017 Term Loan) with Innovatus Life Sciences Lending Fund I, LP (Innovatus) and borrowed $20.0 million, $17.8 million of which was immediately used to repay the Company's existing loan with Capital Royalty Partners II L.P. and its affiliates. On December 7, 2018, the Company borrowed an additional $5.0 million under the 2017 Term Loan. The 2017 Term Loan was subsequently amended in November 2019 and November 2021. As of June 30, 2022, no additional amounts remain available to borrow under the 2017 Term Loan.

In November 2021, the Company executed the Second Amendment to the Loan and Security Agreement (the 2017 Loan Amendment). The interest rate on all borrowings under the 2017 Loan Amendment is 8.0%, of which 2.0% is paid in-kind in the form of additional term loans (PIK Loans) until December of 2024, after which interest accrues at an annual rate of 8.0%. The Company has estimated the effective interest rate of this loan to be approximately 8.5%. Accrued interest is due and payable monthly, unless the Company elects to pay paid-in-kind interest. The outstanding principal and accrued interest on the 2017 Loan Amendment will be repaid in twenty-four equal monthly installments commencing in December 2024. Upon repayment of the final installment under the 2017 Loan Amendment, the Company is required to pay an additional fee of $1.0 million. This obligation is being accreted into interest expense over the term of the 2017 Loan Amendment using the effective interest method. For each of the three months ended June 30, 2022 and 2021, the Company issued PIK Loans totaling $0.1 million. For each of the six months ended June 30, 2022 and 2021, the Company issued PIK Loans totaling $0.3 million.

The 2017 Loan Amendment requires a prepayment premium of 3% of the aggregate outstanding principal. The prepayment premium decreases by 1% on November 1, 2022, 2023 and 2024.

The 2017 Loan Amendment is collateralized by a first priority security interest in substantially all of the Company's assets, including intellectual property. The affirmative covenants of the 2017 Loan Amendment require that the Company timely file taxes, maintain good standing and government compliance, maintain liability and other insurance, provide prompt notification of significant corporate events, and furnish audited financial statements within 150 days of fiscal year end without qualification as to the scope of the audit or as to going concern and without any other similar qualification.

The affirmative covenants require that the Company achieve a specified level of revenue, as measured quarterly on a rolling twelve-month basis, and commencing with the quarter ending December 31, 2022. The consequences of failing to achieve the performance covenant may be cured if, within sixty days of failing to achieve the performance covenant, the Company issues additional equity securities or subordinated debt with net proceeds sufficient to fund any cash flow deficiency generated from operations, as defined. The 2017 Loan Amendment requires that the Company maintain certain levels of minimum liquidity and maintains an unrestricted cash balance of $2.0 million.

The negative covenants provide, among other things, that without the prior consent of Innovatus subject to certain exceptions, the Company may not dispose of certain assets, engage in certain business combinations or acquisitions, incur additional indebtedness or encumber any of the Company's property, pay dividends on the Company's capital stock or make prohibited investments. The 2017 Loan Amendment provides that an event of default will occur if, among other triggers, (i) the Company defaults in the payment of any amount payable under the agreement when due, (ii) there occurs any circumstance(s) that could reasonably be expected to result in a material adverse effect on the Company's business, operations or condition, or on the Company's ability to perform its obligations under the agreement, (iii) the Company becomes insolvent, (iv) the Company undergoes a change in control or (v) the Company breaches any negative covenants or certain affirmative covenants in the agreement or, subject to a cure period, otherwise neglects to perform or observe any material item in the agreement.

As of June 30, 2022, the Company was in compliance with all covenants of the 2017 Loan Amendment.

Upon an event of default in any of the 2017 Loan Amendment covenants, the repayment of the 2017 Loan Amendment may be accelerated, and the applicable interest rate will be increased by 4.0% until the default is cured. Although repayment of the 2017 Loan Amendment can be accelerated under certain circumstances, the Company believes acceleration of this loan is not probable as of the date of these condensed financial statements. Accordingly, the Company has reflected the amounts of the 2017 Loan Amendment due beyond twelve months of the balance sheet date as non-current.

Future Minimum Payments on the Outstanding Borrowings

As of June 30, 2022, future minimum aggregate payments, including interest, for outstanding borrowings under the 2017 Loan Amendment are as follows (in thousands):


2022 (remaining)	$	837
2023	1,686
2024	2,980
2025	16,152
2026	14,786
Total	36,441
Less:
Unamortized debt discount and issuance costs	(182)
Interest	(8,431)
Total borrowings, net of discounts and debt issuance costs	$	27,828

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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+ Details

Summary of Significant Accounting Policies - Securities (Details) - shares	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Class of Stock [Line Items]
Anti-dilutive securities excluded from computation (in shares)	3,173,725	2,938,494
Warrants to purchase common stock
Class of Stock [Line Items]
Anti-dilutive securities excluded from computation (in shares)	409,108	426,827
Common stock options
Class of Stock [Line Items]
Anti-dilutive securities excluded from computation (in shares)	1,949,374	2,123,617
Restricted stock units
Class of Stock [Line Items]
Anti-dilutive securities excluded from computation (in shares)	784,940	375,525
Employee stock purchase plan
Class of Stock [Line Items]
Anti-dilutive securities excluded from computation (in shares)	30,303	12,525

Restatement of Previously Issued Financial Statements - Cash Flow Statement (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net loss	$ (14,665)	$ (10,272)	$ (6,410)	$ (6,209)	$ (24,937)	$ (12,619)
Accounts receivable, net					939	130
Accrued and other current liabilities					(751)	(163)
Net Cash Provided by (Used in) Operating Activities					(19,728)	$ (8,762)
As Originally Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net loss	(13,309)				(23,581)
Accounts receivable, net					64
Accrued and other current liabilities					(1,232)
Net Cash Provided by (Used in) Operating Activities					(19,728)
Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net loss	$ (1,356)				(1,356)
Accounts receivable, net					875
Accrued and other current liabilities					481
Net Cash Provided by (Used in) Operating Activities					$ 0

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Unaudited Condensed Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Revenue	$ 7,606	$ 12,772	$ 18,000	$ 23,359
Operating expenses:
Costs of revenue	6,078	5,451	11,895	10,162
Selling, general and administrative expenses	12,903	11,171	25,055	21,211
Research and development expenses	2,689	1,892	4,793	3,295
Total operating expenses	21,670	18,514	41,743	34,668
Loss from operations	(14,064)	(5,742)	(23,743)	(11,309)
Interest expense	(606)	(663)	(1,204)	(1,308)
Other income (expense), net	5	(5)	10	(2)
Net loss	$ (14,665)	$ (6,410)	$ (24,937)	$ (12,619)
Net loss per share, basic (in dollars per share)	$ (0.86)	$ (0.38)	$ (1.46)	$ (0.84)
Net loss per share, diluted (in dollars per share)	$ (0.86)	$ (0.38)	$ (1.46)	$ (0.84)
Weighted-average number of shares used to compute net loss per share, basic (in shares)	17,058,516	16,928,613	17,025,636	14,946,935
Weighted-average number of shares used to compute net loss per share, diluted (in shares)	17,058,516	16,928,613	17,025,636	14,946,935

Summary of Significant Accounting Policies - Cash, cash equivalents and restricted cash (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Cash and cash equivalents	$ 76,387	$ 99,442
Restricted cash	100	100
Total Cash, Cash Equivalents and Restricted Cash	$ 76,487	$ 99,542	$ 112,676	$ 57,548

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2022	Jul. 29, 2022
Cover [Abstract]
Document Type	10-Q/A
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	001-39049
Entity Registrant Name	EXAGEN INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-0434866
Entity Address, Address Line One	1261 Liberty Way
Entity Address, City or Town	Vista,
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92081
City Area Code	(760)
Local Phone Number	560-1501
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	XGN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		16,260,445
Amendment Description	Exagen Inc. (the Company) hereby amends its Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, filed with the Securities and Exchange Commission (the SEC) on August 4, 2022 (the Original Quarterly Report), as set forth in this Amendment No. 1 on Form 10-Q/A (the Form 10-Q/A or Amended Quarterly Report), to amend and restate its financial statements and related disclosures as of and for the three and six months ended June 30, 2022.Restatement BackgroundOn November 13, 2022, management and the audit committee of our board of directors determined that the Company made certain errors in revenue resulting from erroneous and duplicate billings related to changes in billing practices. The errors were due to the inadequate design and implementation and precision of internal controls and procedures to evaluate and monitor the accounting for revenue recognition. As a result, revenue and accounts receivable were overstated and other liabilities was understated for the quarter and year to date periods ended June 30, 2022.In connection with the restatement, the Company has also corrected errors associated with revenue that it determined to be immaterial, both individually and in the aggregate, to the financial statements for the fiscal quarter ended June 30, 2022. A summary of the accounting impacts of these adjustments to the Company's financial statements as of and for the three and six months ended June 30, 2022 is provided in Note 1 "Restatement of Previously Issued Financial Statements," of the Notes to Condensed Financial Statements of this Form 10-Q/A. The effect of these errors was a $1.4 million overstatement of revenue for the three and six months ended June 30, 2022; in addition to, a $0.9 million overstatement of accounts receivable and a $0.5 million understatement of other liabilities as of June 30, 2022.This Amended Quarterly Report also amends and restates the Company's Management's Discussion and Analysis of Financial Condition and Results of Operations, Risk Factors and other disclosures made in the Original Quarterly Report, as appropriate, to reflect the restatement of the relevant periods.In accordance with Rule 12b-15 under the Securities Exchange Act of 1934, as amended, or the Exchange Act, the Company is also including with this Amended Quarterly Report currently dated certifications of the Company's principal executive officer and principal financial officer (attached as Exhibits 31.1, 31.2, and 32.1). Except as discussed above and as further described in Note 1, Note 1A, Note 2 and Note 3 in the Notes to Condensed Financial Statements, the Company has not modified or updated disclosures presented in this Amended Quarterly Report. Accordingly, the Amended Quarterly Report does not reflect events occurring after the Original Quarterly Report or modify or update those disclosures affected by subsequent events. Information not affected by the restatement is unchanged and reflects disclosures made at the time of the filing of the Original Quarterly Report.In connection with the restatement, the Company has concluded there was a material weakness in its internal control over financial reporting as of June 30, 2022, and its disclosure controls and procedures were not effective. See additional discussion included in Part I, Item 4 of this Amended Quarterly Report.
Entity Central Index Key	0001274737
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	true

Leases - Future Payments Under Operating And Finance Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2022 (remaining)	$ 705
2023	1,446
2024	1,489
2025	1,533
2026	1,584
Thereafter	539
Total minimum lease payments	7,296
Less: imputed interest	(1,290)
Total lease liabilities	6,006
Less: current portion	(979)	$ 0
Lease obligations, net of current portion	5,027	0
Finance Lease, Liability, Payment, Due [Abstract]
2022 (remaining)	378
2023	672
2024	418
2025	92
2026	0
Thereafter	0
Total minimum lease payments	1,560
Less: imputed interest	(100)
Total lease liabilities	1,460
Less: current portion	(679)	$ (587)
Lease obligations, net of current portion	$ 781

Restatement of Previously Issued Financial Statements - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue	$ 7,606	$ 12,772	$ 18,000	$ 23,359
Accounts receivable, net	8,715		8,715		$ 9,654
Accrued and other current liabilities	5,970		5,970		$ 6,826
Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue	(1,356)		(1,356)
Accounts receivable, net	(875)		(875)
Accrued and other current liabilities	$ 481		$ 481

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Stockholders' Equity (Details)	3 Months Ended	6 Months Ended
Stockholders' Equity (Details)	Jun. 30, 2022 $ / shares shares	Jun. 30, 2022 $ / shares shares
Class of Stock [Line Items]
Warrants issued to purchase redeemable convertible preferred stock (in shares)	1,214,059	1,214,059
Net exercise of common stock warrants (in shares)	0	0
Warrant expiration January 19, 2026
Class of Stock [Line Items]
Warrants issued to purchase redeemable convertible preferred stock (in shares)	237,169	237,169
Class of warrant or right, exercise price of warrants or rights (in dollars per share) \| $ / shares	$ 1.84	$ 1.84
Warrant expiration March 31, 2026
Class of Stock [Line Items]
Warrants issued to purchase redeemable convertible preferred stock (in shares)	67,086	67,086
Class of warrant or right, exercise price of warrants or rights (in dollars per share) \| $ / shares	$ 1.84	$ 1.84
Warrant expiration April 1, 2026
Class of Stock [Line Items]
Warrants issued to purchase redeemable convertible preferred stock (in shares)	131	131
Class of warrant or right, exercise price of warrants or rights (in dollars per share) \| $ / shares	$ 1.84	$ 1.84
Warrant expiration September 7, 2024
Class of Stock [Line Items]
Warrants issued to purchase redeemable convertible preferred stock (in shares)	83,778	83,778
Class of warrant or right, exercise price of warrants or rights (in dollars per share) \| $ / shares	$ 14.32	$ 14.32
Warrant expiration December 7, 2025
Class of Stock [Line Items]
Warrants issued to purchase redeemable convertible preferred stock (in shares)	20,944	20,944
Class of warrant or right, exercise price of warrants or rights (in dollars per share) \| $ / shares	$ 14.32	$ 14.32
No expiration
Class of Stock [Line Items]
Warrants issued to purchase redeemable convertible preferred stock (in shares)	804,951	804,951
Class of warrant or right, exercise price of warrants or rights (in dollars per share) \| $ / shares	$ 0.001	$ 0.001

Stock Option Plan - Restricted Stock Units (Details) - Restricted stock units - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding, December 31, 2021 (in shares)	415,325
Awards granted (in shares)	540,225
Awards released (in shares)	(90,821)
Awards canceled (in shares)	(79,789)
Outstanding, March 31, 2022 (in shares)	784,940
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Outstanding, December 31, 2021 (in dollars per share)	$ 16.54
Awards granted, Weighted-Average Grant Date Fair Value (in dollars per share)	8.66
Awards released, Weighted-Average Grant Date Fair Value (in dollars per share)	17.05
Awards canceled, Weighted-Average Grant Date Fair Value (in dollars per share)	11.96
Outstanding, March 31, 2022 (in dollars per share)	$ 11.53
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value [Abstract]
Outstanding, Aggregate Intrinsic Value	$ 4,506	$ 4,830

Organization (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 76,387	$ 99,442
Accumulated deficit	$ (233,077)	$ (208,140)

Stock Option Plan (Tables)

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of Stock Option Activity

Stock option activity under the Company's 2019 Plan is set forth below:


	Number of Options	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in thousands)
Outstanding, December 31, 2021	2,014,330	$	12.10	7.87	$	5,428
Granted	63,000	$	5.25

Forfeited	(102,110)	$	13.79
Expired	(25,846)	$	14.39
Outstanding, June 30, 2022	1,949,374	$	11.76	7.00	$	2,611
Vested and expected to vest, June 30, 2022	1,949,374	$	11.76	7.00	$	2,611
Options exercisable, June 30, 2022	1,334,116	$	10.76	6.55	$	2,365

Schedule of Restricted Stock Unit Activity

Restricted stock unit activity under the Company's 2019 Plan is set forth below:


	Number of Shares	Weighted- Average Grant Date Fair Value		Aggregate Intrinsic Value (in thousands)
Outstanding, December 31, 2021	415,325	$	16.54	$	4,830
Awards granted	540,225	$	8.66
Awards released	(90,821)	$	17.05
Awards canceled	(79,789)	$	11.96
Outstanding, June 30, 2022	784,940	$	11.53	$	4,506

Schedule of Fair Value Assumptions, Stock Options

The fair value of employee stock options was estimated using the following assumptions to determine the fair value of stock options granted:


	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
Expected volatility	54%	83%	54%	83%-84%
Risk-free interest rate	3.4%	1.1%	3.4%	0.8%-1.1%
Dividend yield	—	—	—	—
Expected term (in years)	5.50	5.50-6.08	5.50	5.50-6.08

Schedule of Fair Value Assumptions, Employee Stock Purchase Plan

The following assumptions were used to calculate the stock-based compensation for each stock purchase right granted under the ESPP:


	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
Expected volatility	45%	60%	45%	60%
Risk-free interest rate	0.6%	0.1%	0.6%	0.1%
Dividend yield	—	—	—	—
Expected term (in years)	0.50	0.50	0.50	0.50

Schedule of Non-cash Stock-based Compensation Expense

Total non-cash stock-based compensation expense recorded related to options granted, restricted stock units granted and stock purchase rights granted under the ESPP in the condensed statements of operations is as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Costs of revenue	$	59	$	61	$	103	$	72
Selling, general and administrative	1,203		1,049		2,321		1,840
Research and development	178		175		392		285
Total	$	1,440	$	1,285	$	2,816	$	2,197

Leases (Tables)

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Summary of Lease Costs

Operating and finance leases consist of the following (in thousands):

Lease Balance

Classification

June 30, 2022

Lease Assets

Operating

Operating lease right-of-use assets

5,338

Finance

Property and equipment, net

1,579

Lease Liabilities

Current

Operating

Operating lease liabilities

979

Finance

Accrued and other current liabilities

679

Non-current

Operating

Non-current operating lease liabilities

5,027

Finance

Other non-current liabilities

781

Costs associated with the Company's leases were included in the statements of operations as follows (in thousands):


Lease Cost	Three months ended June 30, 2022		Six months ended June 30, 2022
Operating leases
Operating lease cost(1)	$	384	$	773
Finance lease cost
Amortization of lease assets	158		315
Interest on finance lease liabilities	21		40
Total lease cost	$	563	$	1,128

(1) Includes variable lease cost of $42,000 and $84,000 for the three and six months ended June 30, 2022, respectively.

Supplemental cash flow information on leases is as follows (in thousands):


Cash paid for amounts included in the measurement of lease liabilities	Six months ended June 30, 2022
Operating cash out flows from operating leases	$	557
Operating cash out flows from interest paid on finance leases	$	40
Financing cash out flows from finance leases	$	303

Information regarding the weighted-average lease term and weighted average discount rate are as follows:


	June 30, 2022
Weighted-average remaining lease term (years)
Operating leases	4.8
Finance leases	2.4
Weighted-average discount rate
Operating leases	8.0	%
Finance leases	5.5	%

Summary of Lessee, Operating Lease, Liability, Maturity

Future payments under operating and finance leases as of June 30, 2022 are as follows (in thousands):


	Operating Leases		Finance Leases
2022 (remaining)	$	705	$	378
2023	1,446		672
2024	1,489		418
2025	1,533		92
2026	1,584		—
Thereafter	539		—
Total minimum lease payments	7,296		1,560
Less: imputed interest	(1,290)		(100)
Total lease liabilities	6,006		1,460
Less: current portion	(979)		(679)
Lease obligations, net of current portion	$	5,027	$	781

Summary of Finance Lease, Liability, Maturity

Future payments under operating and finance leases as of June 30, 2022 are as follows (in thousands):


	Operating Leases		Finance Leases
2022 (remaining)	$	705	$	378
2023	1,446		672
2024	1,489		418
2025	1,533		92
2026	1,584		—
Thereafter	539		—
Total minimum lease payments	7,296		1,560
Less: imputed interest	(1,290)		(100)
Total lease liabilities	6,006		1,460
Less: current portion	(979)		(679)
Lease obligations, net of current portion	$	5,027	$	781

Schedule of Future Minimum Rental Payments for Operating Leases

Minimum annual lease payments under non-cancelable operating lease arrangements as of December 31, 2021 are as follows (in thousands):


Years Ending December 31,	Operating Leases
2022	$	1,337
2023	1,445
2024	1,489
2025	1,533
2026	1,584
Thereafter	539
Total minimum lease payments	$	7,927

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Basis of Presentation and Use of Estimates

The accompanying interim condensed balance sheet as of June 30, 2022, the condensed statements of operations and the condensed statements of stockholders' equity for the three and six months ended June 30, 2022 and 2021, cash flows for the six months ended June 30, 2022 and 2021 and the related footnote disclosures are unaudited and have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (SEC), and with accounting principles generally accepted in the United States (GAAP) applicable to interim financial statements. In management's opinion, the unaudited interim condensed financial statements have been prepared on the same basis as the audited financial statements and include all normal adjustments, necessary for the fair presentation of the Company's financial position as of June 30, 2022 and its results of operations for the three and six month periods presented. The results for the six months ended June 30, 2022 are not necessarily indicative of the results expected for the full fiscal year or any other interim period. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. These unaudited condensed financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2021, included in its Annual Report on Form 10-K filed with the SEC on March 22, 2022.

The preparation of the accompanying condensed financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the condensed financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could materially differ from those estimates.

Significant estimates and assumptions made in the accompanying condensed financial statements include, but are not limited to revenue recognition, estimated incremental borrowing rate for the determination of the Company's operating lease right-of-use (ROU) assets, the recoverability of its long-lived assets (including goodwill) and net deferred tax assets (and related valuation allowance). The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could materially differ from those estimates.

Concentration of Credit Risk and Other Risk and Uncertainties

Financial instruments that potentially subject the Company to credit risk consist principally of cash, cash equivalents, and accounts receivable. Substantially all the Company's cash and cash equivalents are held at one financial institution that management believes is of high credit quality. Such deposits may, at times, exceed federally insured limits.

Significant payors and customers are those which represent more than 10% of the Company's total revenue or accounts receivable balance at each respective balance sheet date. For each significant payor and customer, revenue as a percentage of total revenue and accounts receivable as a percentage of total accounts receivable are as follows:


	Revenue
	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(As Restated)				(As Restated)
Medicare Advantage	23	%	13	%	19	%	12	%
Medicare	15	%	19	%	18	%	19	%
Aetna	10	%	*		*		*
Blue Shield	*		11	%	*		11	%



*						Less than 10%.


	Accounts Receivable, Net
	June 30, 2022		December 31, 2021

	(As Restated)
United Healthcare	14	%	18	%
Medicare	10	%	*
Medicare Advantage	10	%	*
Aetna	10	%	*
Blue Shield	*		19	%



*						Less than 10%.

For each of the three months ended June 30, 2022 and 2021, approximately 77% and 81%, respectively, of the Company's revenue was related to the AVISE® CTD test. For the six months ended June 30, 2022 and 2021, approximately 81% and 81%, respectively, of the Company's revenue was related to the AVISE® CTD test.

The Company is dependent on key suppliers for certain laboratory materials. For each of the three months ended June 30, 2022 and 2021, approximately 97% of the Company's diagnostic testing supplies were purchased from two suppliers. For the six months ended June 30, 2022 and 2021, approximately 96% and 97%, respectively, of the Company's diagnostic testing supplies were purchased from two suppliers. An interruption in the supply of these materials would impact the Company's ability to perform testing services.

Disaggregation of Revenue

The following table includes the Company's revenues as disaggregated by payor and customer category (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(As Restated)				(As Restated)
Revenue:
Healthcare insurers	$	4,510	$	7,381	$	10,933	$	13,408
Government	1,139		2,394		3,259		4,403
Client(1)	1,755		2,427		3,346		4,392
Other(2)	202		270		462		556
Janssen (SIMPONI®)	—		300		—		600
Total revenue	$	7,606	$	12,772	$	18,000	$	23,359

(1)Includes hospitals, other laboratories, etc.

(2)Includes patient self-pay.

Fair Value Measurements

The carrying value of the Company's cash and cash equivalents approximate fair value due to the short-term nature of these items. The estimated fair value of the Company's long-term borrowings are determined by Level 2 inputs and is based primarily on quoted market prices for the same or similar issues. The recorded value of the Company's long-term borrowings approximates the current fair value as the interest rate and other terms are that which are currently available to the Company.

Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.

The fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows:

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities;

Level 2 - Inputs other than quoted prices included within Level I that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and

Level 3 - Unobservable inputs that are supported by little or no market activity for the related assets or liabilities.

The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Cash, Cash Equivalents and Restricted Cash

The Company considers all highly-liquid investments purchased with a remaining maturity date upon acquisition of three months or less to be cash equivalents and are stated at cost, which approximates fair value.

The Company has an arrangement with a financial institution with which it has an existing banking relationship whereby, in exchange for the issuance of corporate credit cards, the Company agreed to obtain a $0.1 million certificate of deposit with this financial institution as collateral for the balances borrowed on these credit cards. The Company has classified the value of this certificate of deposit (including all interest earned thereon) within other assets in the accompanying balance sheets. The Company has the right to terminate the credit card program at any time. Upon termination of the credit card program and repayment of all outstanding balances owed, the Company may redeem the certificate of deposit (and all interest earned thereon).

Cash, cash equivalents and restricted cash presented in the accompanying condensed statements of cash flows consist of the following (in thousands):


	June 30, 2022		December 31, 2021
Cash and cash equivalents	$	76,387	$	99,442
Restricted cash	100		100
	$	76,487	$	99,542

Revenue Recognition

Substantially all of the Company's revenue has been derived from sales of its testing products and is primarily comprised of a high volume of relatively low-dollar transactions. The Company primarily markets its testing products to rheumatologists and their physician assistants in the United States. The healthcare professionals who order the Company's testing products and to whom test results are reported are generally not responsible for payment for these products. The parties that pay for these services (each, payors) consist of healthcare insurers, government

payors (primarily Medicare and Medicaid), client payors (i.e., hospitals, other laboratories, etc.), and patient self-pay. The Company's service is a single performance obligation that is completed upon the delivery of test results to the prescribing physician which triggers revenue recognition.

Payors are billed at the Company's list price. Net revenues recognized consist of amounts billed net of allowances for differences between amounts billed and the estimated consideration the Company expects to receive from such payors. The process for estimating revenues and the ultimate collection of accounts receivable involves significant judgment and estimation. The Company follows a standard process, which considers historical denial and collection experience, insurance reimbursement policies and other factors, to estimate allowances and implicit price concessions, recording adjustments in the current period as changes in estimates occur. Further adjustments to the allowances, based on actual receipts, are recorded upon settlement. Included in revenues for the three months ended June 30, 2022 and 2021 was a $1.2 million net revenue decrease and a $0.1 million net revenue increase, respectively, associated with changes in estimated variable consideration related to performance obligations satisfied in previous periods. Such amounts of variable consideration for the six months ended June 30, 2022 and 2021 were $1.6 million and $0.1 million, respectively, of net revenue decreases. The transaction price is estimated using an expected value method on a portfolio basis. The Company's portfolios are grouped per payor (i.e. each individual third-party insurance, Medicare, client payors, patient self-pay, etc.) and per test. Consideration may be constrained and excluded from the transaction price in situations where there is no contractually agreed upon reimbursement coverage or in absence of a predictable pattern and history of collectability with a payor. Accordingly, in such situations revenues are recognized on the basis of actual cash collections. Additionally, from time to time, the Company may issue refunds to payors for overpayments or amounts billed in error. Any refunds are accounted for as reductions in revenues in the statement of operations as an element of variable consideration. The estimated expected refunds are accrued as a liability on the Company’s balance sheet. Additionally, from time to time, the Company may issue refunds to payors for overpayments or amounts billed in error. Any refunds are accounted for as reductions in revenues in the statement of operations as an element of variable consideration. The estimated expected refunds are accrued as a liability on the Company’s balance sheet.

Collection of the Company's net revenues from payors is normally a function of providing complete and correct billing information to the healthcare insurers and generally occurs within 30 to 90 days of billing. Contracts do not contain significant financing components based on the typical period of time between performance of services and collection of consideration.

Janssen Promotion Agreement

In December 2018, the Company entered into a co-promotion agreement (as amended from time to time, the Janssen Agreement) with Janssen Biotech, Inc. (Janssen) to co-promote SIMPONI® in the United States. In August 2021, the Company and Janssen mutually agreed to terminate the Janssen Agreement effective on August 31, 2021.

Pursuant to the Janssen Agreement, as amended, the Company was responsible for the costs associated with its sales force over the course of such co-promotion. Janssen was responsible for all other aspects of the commercialization of SIMPONI® under the Janssen Agreement. In exchange for the Company's sales and co-promotional services, the Company was entitled to a quarterly tiered promotion fee based on the incremental increase in total prescribed units of SIMPONI® for that quarter over a predetermined baseline. The Company's obligations relating to sales and co-promotion services for SIMPONI® were a series of single performance obligations since Janssen simultaneously received and consumed benefits provided by the Company's sales and co-promotional services. The method for measuring progress towards satisfying the performance obligations was based on prescribed units in excess of the contractual baseline at the contractual rate earned per unit since the Janssen Agreement, as amended, was cancelable. The Company recognized no co-promotion revenue and $0.3 million during the three months ended June 30, 2022 and 2021, respectively. The Company recognized no co-promotion revenue and $0.6 million during the six months ended June 30, 2022 and 2021, respectively. The related expenses for marketing SIMPONI® are included in selling, general and administrative expenses and are expensed as incurred.

Upon the termination of the Janssen Agreement on August 31, 2021, the Company became entitled to receive an aggregate of $0.6 million in consideration, which was earned in the year ended December 31, 2021. Pursuant to the terms of the termination, we were restricted until May 31, 2022 from promoting any other biologic or Janus kinase inhibitor used for the treatment of indications covered by the Janssen Agreement without first obtaining Janssen's written consent. The restriction no longer applies.

Leases

The Company categorizes leases at their commencement as either operating or finance leases. Effective January 1, 2022 upon the adoption of ASC 842, the Company recognizes operating lease ROU assets and operating lease liabilities for each lease arrangement identified. Lease liabilities are recorded at the present value of future lease payments discounted using the Company's incremental borrowing rate for the lease established at the commencement date and ROU assets are measured at the amount of the lease liability plus any initial direct costs, less any lease incentives received before commencement. Lease expense is recognized as a single lease cost over the lease term on a straight-line basis. The Company has elected not to apply the recognition requirements to short-term leases and not to separate non-lease components from lease components for its leases. See Note 5 for details on the Company's leases.

Research and Development

Costs associated with research and development activities are expensed as incurred and include, but are not limited to, personnel-related expenses, including stock-based compensation expense, materials, laboratory supplies, consulting costs, costs associated with setting up and conducting clinical studies and allocated overhead including rent and utilities.

Advertising and Marketing Costs

Costs associated with advertising and marketing activities are expensed as incurred. Total advertising and marketing costs were approximately $0.6 million and $0.4 million for the three months ended June 30, 2022 and 2021, respectively, and $0.9 million and $0.6 million for the six months ended June 30, 2022 and 2021, respectively, and are included in selling, general and administrative expenses in the accompanying condensed statements of operations.

Shipping and Handling Costs

Costs incurred for shipping and handling are included in costs of revenue in the accompanying condensed statements of operations and totaled approximately $0.7 million and $0.6 million for the three months ended June 30, 2022 and 2021, respectively, and $1.3 million and $1.0 million for the six months ended June 30, 2022 and 2021, respectively.

Stock-Based Compensation

The Company recognizes compensation expense for all stock-based awards to employees and directors based on the grant-date estimated fair values over the requisite service period of the awards (usually the vesting period) on a straight-line basis. The fair value of stock options and purchases under the Company's 2019 Employee Stock Purchase Plan (ESPP) rights are determined using the Black-Scholes-Merton (BSM) option pricing model, which requires management to make certain assumptions regarding a number of complex and subjective variables. Equity award forfeitures are recorded as they occur.

The fair value of each restricted stock unit is determined on the grant date using the closing price of the Company's common stock on the grant date and generally vest from the grant date in four equal annual installments subject to the holder's continued service with the Company. The Company issues new shares to satisfy restricted stock units upon vesting.

Comprehensive Loss

Comprehensive loss is defined as a change in equity of a business enterprise during a period, resulting from transactions from nonowner sources. There have been no items qualifying as other comprehensive loss and, therefore, for all periods presented, the Company's comprehensive loss was the same as its reported net loss.

Net Loss Per Share

Basic net loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common

stockholders by the weighted-average number of common stock equivalents outstanding for the period determined using the treasury-stock and if-converted methods. The weighted-average number of shares in 2022 and 2021 used to compute basic and diluted shares includes shares issuable upon the exercise of pre-funded warrants at a nominal price. Potentially dilutive common stock equivalents are comprised of warrants for the purchase of common stock, options, restricted stock units outstanding under the Company's 2019 Incentive Award Plan (the 2019 Plan) and shares of the Company's common stock pursuant to the ESPP. For the three and six months ended June 30, 2022 and 2021, there is no difference in the number of shares used to calculate basic and diluted shares outstanding as the inclusion of the potentially dilutive securities would be antidilutive.

Potentially dilutive securities not included in the calculation of diluted net loss per share because to do so would be anti-dilutive are as follows (in common stock equivalent shares):


	June 30,
	2022	2021


Warrants to purchase common stock	409,108	426,827
Common stock options	1,949,374	2,123,617
Restricted stock units	784,940	375,525
Employee stock purchase plan	30,303	12,525
Total	3,173,725	2,938,494

Segment Reporting

Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. The Company views its operations as, and manages its business in, one operating segment.

Recent Accounting Pronouncements Not Yet Adopted

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB), or other standard setting bodies and adopted by the Company as of the specified effective date. Under the Jumpstart Our Business Startups Act of 2012 (JOBS Act), the Company meets the definition of an emerging growth company (EGC). The Company has elected to use the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act. Unless otherwise discussed, the impact of recently issued standards that are not yet effective will not have a material impact on the Company's financial position or results of operations upon adoption.

In June 2016, the FASB issued Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the measurement of expected credit losses for financial instruments carried at amortized cost, such as accounts receivable, held at the reporting date based on historical experience, current conditions and reasonable forecasts. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financing Instruments-Credit Losses, which included an amendment of the effective date for nonpublic entities. For non-EGCs, ASU 2016-13 is effective for fiscal years beginning after December 15, 2019. For EGCs, the standard was to be effective for fiscal years beginning after December 15, 2021. However, in November 2019, the FASB issued ASU 2019-10, which included a one-year deferral of the effective date of ASU 2016-13 for certain entities. As a result, the ASU 2016-13 is now effective for EGCs for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the impact of Topic 326 on its condensed financial statements.

Recently Adopted Accounting Standards

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new topic supersedes Topic 840, Leases, and increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requires disclosures of key information about leasing arrangements. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, which provides narrow

amendments to clarify how to apply certain aspects of the new lease standard, and ASU 2018-11, Leases: Targeted Improvements, which was issued to provide relief to companies from restating comparative periods. Pursuant to this ASU, in the period of adoption the Company will not restate comparative periods presented in its condensed financial statements. On January 1, 2022, the Company adopted ASU 2016-12 using the modified retrospective transition method. Periods prior to January 1, 2022 have not been restated for the adoption of ASC 842 and continue to reflect the accounting treatment of leases in accordance with the prior lease accounting guidance, ASC 840, Leases. The Company adopted the new lease standard using a cumulative effect to accumulated deficit and there was no impact to accumulated deficit upon adoption. The Company elected the package of practical expedients, which among other things allowed the Company to carry forward its historical lease classification. As part of the adoption, the Company recorded operating lease liabilities of $6.4 million, operating lease ROU assets of $5.9 million, adjusted for deferred rent and lease incentive obligations of $0.5 million previously included in other non-current liabilities and accrued and other current liabilities, pertaining to its office and laboratory space operating leases. See Note 5 for details on the Company's leases.

Unaudited Condensed Statements of Stockholders' Equity (Parenthetical) $ in Thousands	Mar. 31, 2021 USD ($)
Statement of Financial Position [Abstract]
Stock issuance costs	$ 4,435

Leases - Future Minimum Lease Payments Under Topic 840 (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Leases [Abstract]
2022	$ 1,337
2023	1,445
2024	1,489
2025	1,533
2026	1,584
Thereafter	539
Total minimum lease payments	$ 7,927

Leases - Lease balances (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Leases [Abstract]
Operating lease right-of-use assets	$ 5,338	$ 0
Finance lease, right-of-use asset, after accumulated amortization	$ 1,579
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property and equipment, net
Operating lease liabilities	$ 979	0
Finance lease liabilities - current	679	587
Non-current operating lease liabilities	5,027	$ 0
Lease obligations, net of current portion	$ 781
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued and other current liabilities
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other non-current liabilities

Organization	6 Months Ended
Organization	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Description of Business Exagen Inc. (the Company) is dedicated to transforming the care continuum for patients suffering from debilitating and chronic autoimmune diseases by enabling timely differential diagnosis and optimizing therapeutic intervention. Liquidity The Company has incurred recurring losses and negative cash flows from operating activities since inception. The Company anticipates that it will continue to incur net losses into the foreseeable future. As of June 30, 2022, the Company had cash and cash equivalents of $76.4 million and had an accumulated deficit of $233.1 million (as restated). Since inception, the Company has financed its operations primarily through a combination of equity financings of common stock and private placements of preferred securities, debt financing arrangements, and revenue from sales of the Company's products. Based on the Company's current business plan, management believes that its existing capital resources will be sufficient to fund the Company's obligations for at least twelve months following the issuance of these condensed financial statements. To execute its business plans, the Company may need additional funding to support its continuing operations and pursue its growth strategy. Until such time as the Company can achieve significant cash flows from operations, if ever, it expects to finance its operations through the sale of its stock, debt financings or other strategic transactions. Although the Company has been successful in raising capital in the past, there is no assurance that it will be successful in obtaining such additional financing on terms acceptable to the Company, if at all. The terms of any financing may adversely affect the holdings or the rights of the Company's stockholders. If the Company is unable to obtain funding, the Company could be forced to delay, reduce or eliminate some or all of its programs, product portfolio expansion plans or commercialization efforts, which could have a material adverse effect on the Company's business, operating results and financial condition and the Company's ability to achieve its intended business objectives. Impact of COVID-19 Pandemic In 2020, due to the worldwide COVID-19 pandemic, the Company began to experience a reduction in patient test volumes, delays in patient enrollment in ongoing and planned clinical studies, and delays in the procurement of its testing supplies. The full extent to which the COVID-19 pandemic will directly or indirectly continue to impact the Company's business, results of operations and financial condition, will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain or treat COVID-19, including, the success of ongoing vaccination efforts, the emergence and prevalence of variant strains of COVID-19, the institution or reinstitution of shutdowns, "stay-at-home-orders" and other public health measures as well as the related economic impact of these matters on local, regional and international markets.

Borrowings (Tables)

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Schedule of Future Minimum Aggregate Payments for Outstanding Borrowings

As of June 30, 2022, future minimum aggregate payments, including interest, for outstanding borrowings under the 2017 Loan Amendment are as follows (in thousands):


2022 (remaining)	$	837
2023	1,686
2024	2,980
2025	16,152
2026	14,786
Total	36,441
Less:
Unamortized debt discount and issuance costs	(182)
Interest	(8,431)
Total borrowings, net of discounts and debt issuance costs	$	27,828

Other Financial Information - Prepaid expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Other Financial Information [Abstract]
Diagnostic testing supplies	$ 1,077	$ 1,091
Prepaid product royalties	44	49
Prepaid maintenance and insurance contracts	1,511	2,008
Other prepaid expenses and other current assets	430	490
Prepaid expenses and other current assets	$ 3,062	$ 3,638

Commitment and Contingencies (Details) - USD ($) $ in Thousands	1 Months Ended			3 Months Ended		6 Months Ended
	May 31, 2022	Nov. 30, 2021	May 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Loss Contingencies [Line Items]
Purchase obligation, due in year one				$ 6,900		$ 6,900
Purchase obligation, to be paid remainder of fiscal year				$ 6,000		$ 6,000
Annual increase in purchase commitments				15.00%		15.00%
Purchase obligation	$ 1,200
Monthly payment	$ 25
Licensing Agreements
Loss Contingencies [Line Items]
Purchase obligation, due in year one		$ 100
Period for royalties to begin		18 months
Licensing Agreements \| Minimum
Loss Contingencies [Line Items]
Royalty obligation, percent of net sales				1.50%		1.50%
Licensing Agreements \| Maximum
Loss Contingencies [Line Items]
Royalty obligation, percent of net sales				7.00%		7.00%
AHN Collaboration
Loss Contingencies [Line Items]
Collaboration agreement, collaboration expenses				$ 100	$ 100	$ 200	$ 100
Prometheus Laboratories
Loss Contingencies [Line Items]
Future minimum royalty commitment				1,200		1,200
Advance royalties payment				$ 100		$ 100
Prometheus Laboratories \| Minimum
Loss Contingencies [Line Items]
Royalty obligation, percent of net sales				2.50%		2.50%
Allegheny Health Network Research Institute
Loss Contingencies [Line Items]
Collaboration fee			$ 400
Allegheny Health Network Research Institute \| Licensing Agreements
Loss Contingencies [Line Items]
Initial license fee			$ 400
Queen Mary University \| Licensing Agreements
Loss Contingencies [Line Items]
Initial license fee		$ 400

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Schedule of Concentration of Risk, by Risk Factor and Significant Payer

For each significant payor and customer, revenue as a percentage of total revenue and accounts receivable as a percentage of total accounts receivable are as follows:


	Revenue
	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(As Restated)				(As Restated)
Medicare Advantage	23	%	13	%	19	%	12	%
Medicare	15	%	19	%	18	%	19	%
Aetna	10	%	*		*		*
Blue Shield	*		11	%	*		11	%



*						Less than 10%.


	Accounts Receivable, Net
	June 30, 2022		December 31, 2021

	(As Restated)
United Healthcare	14	%	18	%
Medicare	10	%	*
Medicare Advantage	10	%	*
Aetna	10	%	*
Blue Shield	*		19	%



*						Less than 10%.

Disaggregation of Revenue

The following table includes the Company's revenues as disaggregated by payor and customer category (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(As Restated)				(As Restated)
Revenue:
Healthcare insurers	$	4,510	$	7,381	$	10,933	$	13,408
Government	1,139		2,394		3,259		4,403
Client(1)	1,755		2,427		3,346		4,392
Other(2)	202		270		462		556
Janssen (SIMPONI®)	—		300		—		600
Total revenue	$	7,606	$	12,772	$	18,000	$	23,359

(1)Includes hospitals, other laboratories, etc.

(2)Includes patient self-pay.

Schedule of Restricted Cash and Cash Equivalents

Cash, cash equivalents and restricted cash presented in the accompanying condensed statements of cash flows consist of the following (in thousands):


	June 30, 2022		December 31, 2021
Cash and cash equivalents	$	76,387	$	99,442
Restricted cash	100		100
	$	76,487	$	99,542

Schedule of Cash and Cash Equivalents

Cash, cash equivalents and restricted cash presented in the accompanying condensed statements of cash flows consist of the following (in thousands):


	June 30, 2022		December 31, 2021
Cash and cash equivalents	$	76,387	$	99,442
Restricted cash	100		100
	$	76,487	$	99,542

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

Potentially dilutive securities not included in the calculation of diluted net loss per share because to do so would be anti-dilutive are as follows (in common stock equivalent shares):


	June 30,
	2022	2021


Warrants to purchase common stock	409,108	426,827
Common stock options	1,949,374	2,123,617
Restricted stock units	784,940	375,525
Employee stock purchase plan	30,303	12,525
Total	3,173,725	2,938,494

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2022
Accounting Policies [Abstract]
Concentration of Credit Risk and Other Risk and Uncertainties	Concentration of Credit Risk and Other Risk and Uncertainties Financial instruments that potentially subject the Company to credit risk consist principally of cash, cash equivalents, and accounts receivable. Substantially all the Company's cash and cash equivalents are held at one financial institution that management believes is of high credit quality. Such deposits may, at times, exceed federally insured limits.
Fair Value Measurements	Fair Value Measurements The carrying value of the Company's cash and cash equivalents approximate fair value due to the short-term nature of these items. The estimated fair value of the Company's long-term borrowings are determined by Level 2 inputs and is based primarily on quoted market prices for the same or similar issues. The recorded value of the Company's long-term borrowings approximates the current fair value as the interest rate and other terms are that which are currently available to the Company. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 - Inputs other than quoted prices included within Level I that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and Level 3 - Unobservable inputs that are supported by little or no market activity for the related assets or liabilities. The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash The Company considers all highly-liquid investments purchased with a remaining maturity date upon acquisition of three months or less to be cash equivalents and are stated at cost, which approximates fair value.
Revenue Recognition	Revenue Recognition Substantially all of the Company's revenue has been derived from sales of its testing products and is primarily comprised of a high volume of relatively low-dollar transactions. The Company primarily markets its testing products to rheumatologists and their physician assistants in the United States. The healthcare professionals who order the Company's testing products and to whom test results are reported are generally not responsible for payment for these products. The parties that pay for these services (each, payors) consist of healthcare insurers, government payors (primarily Medicare and Medicaid), client payors (i.e., hospitals, other laboratories, etc.), and patient self-pay. The Company's service is a single performance obligation that is completed upon the delivery of test results to the prescribing physician which triggers revenue recognition. Payors are billed at the Company's list price. Net revenues recognized consist of amounts billed net of allowances for differences between amounts billed and the estimated consideration the Company expects to receive from such payors. The process for estimating revenues and the ultimate collection of accounts receivable involves significant judgment and estimation. The Company follows a standard process, which considers historical denial and collection experience, insurance reimbursement policies and other factors, to estimate allowances and implicit price concessions, recording adjustments in the current period as changes in estimates occur. Further adjustments to the allowances, based on actual receipts, are recorded upon settlement. Included in revenues for the three months ended June 30, 2022 and 2021 was a $1.2 million net revenue decrease and a $0.1 million net revenue increase, respectively, associated with changes in estimated variable consideration related to performance obligations satisfied in previous periods. Such amounts of variable consideration for the six months ended June 30, 2022 and 2021 were $1.6 million and $0.1 million, respectively, of net revenue decreases. The transaction price is estimated using an expected value method on a portfolio basis. The Company's portfolios are grouped per payor (i.e. each individual third-party insurance, Medicare, client payors, patient self-pay, etc.) and per test. Consideration may be constrained and excluded from the transaction price in situations where there is no contractually agreed upon reimbursement coverage or in absence of a predictable pattern and history of collectability with a payor. Accordingly, in such situations revenues are recognized on the basis of actual cash collections. Additionally, from time to time, the Company may issue refunds to payors for overpayments or amounts billed in error. Any refunds are accounted for as reductions in revenues in the statement of operations as an element of variable consideration. The estimated expected refunds are accrued as a liability on the Company’s balance sheet. Additionally, from time to time, the Company may issue refunds to payors for overpayments or amounts billed in error. Any refunds are accounted for as reductions in revenues in the statement of operations as an element of variable consideration. The estimated expected refunds are accrued as a liability on the Company’s balance sheet. Collection of the Company's net revenues from payors is normally a function of providing complete and correct billing information to the healthcare insurers and generally occurs within 30 to 90 days of billing. Contracts do not contain significant financing components based on the typical period of time between performance of services and collection of consideration.
Leases	Leases The Company categorizes leases at their commencement as either operating or finance leases. Effective January 1, 2022 upon the adoption of ASC 842, the Company recognizes operating lease ROU assets and operating lease liabilities for each lease arrangement identified. Lease liabilities are recorded at the present value of future lease payments discounted using the Company's incremental borrowing rate for the lease established at the commencement date and ROU assets are measured at the amount of the lease liability plus any initial direct costs, less any lease incentives received before commencement. Lease expense is recognized as a single lease cost over the lease term on a straight-line basis. The Company has elected not to apply the recognition requirements to short-term leases and not to separate non-lease components from lease components for its leases. See Note 5 for details on the Company's leases.
Research and Development	Research and Development Costs associated with research and development activities are expensed as incurred and include, but are not limited to, personnel-related expenses, including stock-based compensation expense, materials, laboratory supplies, consulting costs, costs associated with setting up and conducting clinical studies and allocated overhead including rent and utilities.
Advertising and Marketing Costs	Advertising and Marketing Costs Costs associated with advertising and marketing activities are expensed as incurred. Total advertising and marketing costs were approximately $0.6 million and $0.4 million for the three months ended June 30, 2022 and 2021, respectively, and $0.9 million and $0.6 million for the six months ended June 30, 2022 and 2021, respectively, and are included in selling, general and administrative expenses in the accompanying condensed statements of operations.
Shipping and Handling Costs	Shipping and Handling Costs Costs incurred for shipping and handling are included in costs of revenue in the accompanying condensed statements of operations and totaled approximately $0.7 million and $0.6 million for the three months ended June 30, 2022 and 2021, respectively, and $1.3 million and $1.0 million for the six months ended June 30, 2022 and 2021, respectively.
Stock-Based Compensation	Stock-Based Compensation The Company recognizes compensation expense for all stock-based awards to employees and directors based on the grant-date estimated fair values over the requisite service period of the awards (usually the vesting period) on a straight-line basis. The fair value of stock options and purchases under the Company's 2019 Employee Stock Purchase Plan (ESPP) rights are determined using the Black-Scholes-Merton (BSM) option pricing model, which requires management to make certain assumptions regarding a number of complex and subjective variables. Equity award forfeitures are recorded as they occur. The fair value of each restricted stock unit is determined on the grant date using the closing price of the Company's common stock on the grant date and generally vest from the grant date in four equal annual installments subject to the holder's continued service with the Company. The Company issues new shares to satisfy restricted stock units upon vesting.
Comprehensive Loss	Comprehensive Loss Comprehensive loss is defined as a change in equity of a business enterprise during a period, resulting from transactions from nonowner sources. There have been no items qualifying as other comprehensive loss and, therefore, for all periods presented, the Company's comprehensive loss was the same as its reported net loss.
Net Loss Per Share	Net Loss Per Share Basic net loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common stock equivalents outstanding for the period determined using the treasury-stock and if-converted methods. The weighted-average number of shares in 2022 and 2021 used to compute basic and diluted shares includes shares issuable upon the exercise of pre-funded warrants at a nominal price. Potentially dilutive common stock equivalents are comprised of warrants for the purchase of common stock, options, restricted stock units outstanding under the Company's 2019 Incentive Award Plan (the 2019 Plan) and shares of the Company's common stock pursuant to the ESPP. For the three and six months ended June 30, 2022 and 2021, there is no difference in the number of shares used to calculate basic and diluted shares outstanding as the inclusion of the potentially dilutive securities would be antidilutive.
Segment Reporting	Segment Reporting Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. The Company views its operations as, and manages its business in, one operating segment.
Recent Accounting Pronouncements Not Yet Adopted, Recently Adopted Accounting Standards	Recent Accounting Pronouncements Not Yet Adopted From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB), or other standard setting bodies and adopted by the Company as of the specified effective date. Under the Jumpstart Our Business Startups Act of 2012 (JOBS Act), the Company meets the definition of an emerging growth company (EGC). The Company has elected to use the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act. Unless otherwise discussed, the impact of recently issued standards that are not yet effective will not have a material impact on the Company's financial position or results of operations upon adoption. In June 2016, the FASB issued Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the measurement of expected credit losses for financial instruments carried at amortized cost, such as accounts receivable, held at the reporting date based on historical experience, current conditions and reasonable forecasts. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financing Instruments-Credit Losses, which included an amendment of the effective date for nonpublic entities. For non-EGCs, ASU 2016-13 is effective for fiscal years beginning after December 15, 2019. For EGCs, the standard was to be effective for fiscal years beginning after December 15, 2021. However, in November 2019, the FASB issued ASU 2019-10, which included a one-year deferral of the effective date of ASU 2016-13 for certain entities. As a result, the ASU 2016-13 is now effective for EGCs for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the impact of Topic 326 on its condensed financial statements. Recently Adopted Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new topic supersedes Topic 840, Leases, and increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requires disclosures of key information about leasing arrangements. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, which provides narrow amendments to clarify how to apply certain aspects of the new lease standard, and ASU 2018-11, Leases: Targeted Improvements, which was issued to provide relief to companies from restating comparative periods. Pursuant to this ASU, in the period of adoption the Company will not restate comparative periods presented in its condensed financial statements. On January 1, 2022, the Company adopted ASU 2016-12 using the modified retrospective transition method. Periods prior to January 1, 2022 have not been restated for the adoption of ASC 842 and continue to reflect the accounting treatment of leases in accordance with the prior lease accounting guidance, ASC 840, Leases. The Company adopted the new lease standard using a cumulative effect to accumulated deficit and there was no impact to accumulated deficit upon adoption. The Company elected the package of practical expedients, which among other things allowed the Company to carry forward its historical lease classification. As part of the adoption, the Company recorded operating lease liabilities of $6.4 million, operating lease ROU assets of $5.9 million, adjusted for deferred rent and lease incentive obligations of $0.5 million previously included in other non-current liabilities and accrued and other current liabilities, pertaining to its office and laboratory space operating leases. See Note 5 for details on the Company's leases.

Restatement of Previously Issued Financial Statements (Tables)

6 Months Ended

Jun. 30, 2022

Accounting Changes and Error Corrections [Abstract]

Schedule of Correction of Immaterial Misstatements

The following tables reflect the impact of the restatement adjustments to the specific line items presented in our previously reported financial statements for the periods indicated. The amounts originally reported were derived from the Original Quarterly Report (in thousands, except per share amounts):


Condensed Balance Sheet	June 30, 2022
	As Originally Reported		Adjustments		As Restated
Assets
Accounts receivable, net	$	9,590	$	(875)	$	8,715
Total current assets	89,039		(875)		88,164
Total assets	107,724		(875)		106,849

Liabilities and Stockholders' Equity
Accrued and other current liabilities	5,489		481		5,970
Total current liabilities	9,573		481		10,054
Total liabilities	43,544		481		44,025
Accumulated deficit	(231,721)		(1,356)		(233,077)
Total stockholders' equity	64,180		(1,356)		62,824
Total liabilities and stockholders' equity	107,724		(875)		106,849


Condensed Statement of Operations	Three Months Ended June 30, 2022
	As Originally Reported		Adjustments		As Restated
Revenue	$	8,962	$	(1,356)	$	7,606
Loss from operations	(12,708)		(1,356)		(14,064)
Net loss	(13,309)		(1,356)		(14,665)
Net loss per share, basic and diluted	(0.78)		(0.08)		(0.86)


Condensed Statement of Operations	Six Months Ended June 30, 2022
	As Originally Reported		Adjustments		As Restated
Revenue	$	19,356	$	(1,356)	$	18,000
Loss from operations	(22,387)		(1,356)		(23,743)
Net loss	(23,581)		(1,356)		(24,937)
Net loss per share, basic and diluted	(1.39)		(0.07)		(1.46)


Condensed Statement of Cash Flows	Six Months Ended June 30, 2022
	As Originally Reported		Adjustments		As Restated
Cash flows from operating activities:
Net loss	$	(23,581)	$	(1,356)	$	(24,937)
Changes in assets and liabilities:
Accounts receivable, net.	64		875		939
Accrued and other current liabilities	(1,232)		481		(751)
Net cash used in operating activities	(19,728)		—		(19,728)

Other Financial Information - Property and equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 11,688	$ 8,656
Less: accumulated depreciation and amortization	(4,472)	(3,884)
Property and equipment, net	7,216	4,772
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment	98	83
Laboratory equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	4,846	4,361
Computer equipment and software
Property, Plant and Equipment [Line Items]
Total property and equipment	1,274	1,206
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	1,367	1,151
Construction in progress
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 4,103	$ 1,855

Unaudited Condensed Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2020		12,652,308
Beginning balance at Dec. 31, 2020	$ 41,839	$ 13	$ 223,115	$ (181,289)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock in public offering, net of issuance costs of $4,435 (in shares)		4,255,000
Issuance of stock in public offering, net of issuance costs of $4,435	64,709	$ 4	64,705
Exercise of stock options (in shares)		3,381
Exercise of stock options	44		44
Issuance of stock under Employee Stock Purchase Plan (in shares)		14,991
Issuance of stock under Employee Stock Purchase Plan	175		175
Stock-based compensation	912		912
Net loss	(6,209)			(6,209)
Ending balance (in shares) at Mar. 31, 2021		16,925,680
Ending balance at Mar. 31, 2021	101,470	$ 17	288,951	(187,498)
Beginning balance (in shares) at Dec. 31, 2020		12,652,308
Beginning balance at Dec. 31, 2020	41,839	$ 13	223,115	(181,289)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(12,619)
Ending balance (in shares) at Jun. 30, 2021		16,126,784
Ending balance at Jun. 30, 2021	96,380	$ 16	290,272	(193,908)
Beginning balance (in shares) at Mar. 31, 2021		16,925,680
Beginning balance at Mar. 31, 2021	101,470	$ 17	288,951	(187,498)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Retirement of common stock in exchange for common stock warrant (in shares)		(804,951)
Retirement of common stock in exchange for common stock warrant	(12,775)	$ (1)	(12,774)
Issuance of common stock warrant in exchange for retirement of common stock	12,775		12,775
Exercise of stock options (in shares)		6,055
Exercise of stock options	35		35
Stock-based compensation	1,285		1,285
Net loss	(6,410)			(6,410)
Ending balance (in shares) at Jun. 30, 2021		16,126,784
Ending balance at Jun. 30, 2021	$ 96,380	$ 16	290,272	(193,908)
Beginning balance (in shares) at Dec. 31, 2021	16,164,994	16,164,994
Beginning balance at Dec. 31, 2021	$ 84,936	$ 16	293,060	(208,140)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock from vested restricted stock units and payment of employees' taxes (in shares)		30,523
Issuance of stock from vested restricted stock units and payment of employees' taxes	(115)		(115)
Issuance of stock under Employee Stock Purchase Plan (in shares)		35,681
Issuance of stock under Employee Stock Purchase Plan	231		231
Stock-based compensation	1,376		1,376
Net loss	(10,272)			(10,272)
Ending balance (in shares) at Mar. 31, 2022		16,231,198
Ending balance at Mar. 31, 2022	$ 76,156	$ 16	294,552	(218,412)
Beginning balance (in shares) at Dec. 31, 2021	16,164,994	16,164,994
Beginning balance at Dec. 31, 2021	$ 84,936	$ 16	293,060	(208,140)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ (24,937)
Ending balance (in shares) at Jun. 30, 2022	16,258,807	16,258,807
Ending balance at Jun. 30, 2022	$ 62,824	$ 16	295,885	(233,077)
Beginning balance (in shares) at Mar. 31, 2022		16,231,198
Beginning balance at Mar. 31, 2022	76,156	$ 16	294,552	(218,412)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock from vested restricted stock units and payment of employees' taxes (in shares)		27,609
Issuance of stock from vested restricted stock units and payment of employees' taxes	(107)		(107)
Stock-based compensation	1,440		1,440
Net loss	$ (14,665)			(14,665)
Ending balance (in shares) at Jun. 30, 2022	16,258,807	16,258,807
Ending balance at Jun. 30, 2022	$ 62,824	$ 16	$ 295,885	$ (233,077)

Stockholders' Equity

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Stockholders' Equity

Common Stock

On November 10, 2020, the Company filed a registration statement on Form S-3 (the Shelf Registration Statement), covering the offering, from time to time, of up to $150.0 million of common stock, preferred stock, debt securities, warrants and units, which Shelf Registration Statement became effective on November 19, 2020.

On March 25, 2021, the Company completed a public offering of 4,255,000 shares of its common stock at a public offering price of $16.25 per share. Net proceeds from the offering were approximately $64.7 million, after deducting underwriting discounts, commissions and other offering expenses of $4.4 million. The shares were registered pursuant to the Company's Shelf Registration Statement discussed above.

Exchange Agreement

On June 22, 2021, the Company entered into an exchange agreement (the Exchange Agreement) with an Investor and its affiliates (the Exchanging Stockholders), pursuant to which the Company exchanged an aggregate of 804,951 shares of the Company's common stock owned by the Exchanging Stockholders for pre-funded warrants (the Exchange Warrants) to purchase an aggregate of 804,951 shares of common stock (subject to adjustment in the event of any stock dividends and splits, reverse stock split, recapitalization, reorganization or similar transaction, as described in the Exchange Warrants), with an exercise price of $0.001 per share. The Exchange Warrants do not expire and are exercisable at any time except that the Exchange Warrants cannot be exercised by the Exchanging Stockholders if, after giving effect thereto, the Exchanging Stockholders would beneficially own more than 4.99% of the Company's common stock, which percentage may change at the Exchanging Stockholder's election to any other percentage upon 61 days' notice to the Company. The Company recorded the retirement of common stock

exchanged as a reduction of common shares outstanding and additional paid-in-capital at the fair value of the Exchange Warrants on the issuance date. The Exchange Warrants are classified as equity and the fair value of the Exchange Warrants was recorded as an increase to additional paid-in-capital and is not subject to remeasurement. The Company determined that the fair value of the Exchange Warrants is substantially similar to the fair value of the retired shares on the issuance date due to the negligible exercise price for the Exchange Warrants. As of June 30, 2022, none of the Exchange Warrants have been exercised.

Outstanding Warrants

The following equity classified warrants to purchase common stock were outstanding as of June 30, 2022:


	Shares	Exercise Price		Issuance date	Expiration date
Common stock warrants	237,169	$	1.84	January 19, 2016	January 19, 2026
Common stock warrants	67,086	$	1.84	March 31, 2016	March 31, 2026
Common stock warrants	131	$	1.84	April 1, 2016	April 1, 2026
Common stock warrants	83,778	$	14.32	September 7, 2017	September 7, 2024
Common stock warrants	20,944	$	14.32	December 7, 2018	December 7, 2025
Common stock warrants (Exchange Warrants)	804,951	$	0.001	June 22, 2021	None
	1,214,059

During the three and six months ended June 30, 2022, no warrants to purchase common stock was exercised.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI https://asc.fasb.org/topic&trid=2208762

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI https://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Paragraph 14
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 16
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496180-112644

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Section 50
-Paragraph 6
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126731327&loc=SL126733271-114008

+ Details

Fair Value Measurements

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

The following table sets forth the Company's financial instruments that were measured at fair value on a recurring basis within the fair value hierarchy (in thousands):


	June 30, 2022
	Total		Level 1		Level 2		Level 3
Assets:
Money market funds, included in cash and cash equivalents	$	72,078	$	72,078	$	—	$	—


	December 31, 2021
	Total		Level 1		Level 2		Level 3
Assets:
Money market funds, included in cash and cash equivalents	$	95,761	$	95,761	$	—	$	—

The fair value of the Company's money market funds is based on quoted market prices.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Other Financial Information - Accrued and other current liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Other Financial Information [Abstract]
Accrued payroll and related expenses	$ 2,900	$ 4,048
Accrued interest	136	139
Accrued purchases of goods and services	1,040	510
Accrued royalties	124	180
Accrued clinical study activity	158	254
Finance lease liabilities - current	679	587
Other accrued liabilities	452	1,108
Accrued and other current liabilities	$ 5,970	$ 6,826

Stock Option Plan

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Stock Option Plan

2019 Incentive Award Plan

In September 2019, the Company's Board of Directors adopted, and the Company's stockholders approved, the 2019 Plan. Under the 2019 Plan, which expires in September 2029, the Company may grant stock options, stock appreciation rights, restricted stock, restricted stock units and other awards to individuals who are then employees, officers, non-employee directors or consultants of the Company or its subsidiaries. The options generally expire ten years after the date of grant and are exercisable to the extent vested. Vesting is established by the Board of Directors and is generally four years from the date of grant. As of June 30, 2022, 1,430,690 shares of common stock remained available for future awards.

2019 Employee Stock Purchase Plan

In September 2019, the Board of Directors adopted, and the Company's stockholders approved, the ESPP. The ESPP became effective on the day the ESPP was adopted by the Company's Board of Directors. The ESPP permits participants to purchase common stock through payroll deductions of up to 20% of their eligible compensation. As of June 30, 2022, 453,484 shares of common stock remained available for issuance under the ESPP.

Stock Options

Stock option activity under the Company's 2019 Plan is set forth below:


	Number of Options	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in thousands)
Outstanding, December 31, 2021	2,014,330	$	12.10	7.87	$	5,428
Granted	63,000	$	5.25

Forfeited	(102,110)	$	13.79
Expired	(25,846)	$	14.39
Outstanding, June 30, 2022	1,949,374	$	11.76	7.00	$	2,611
Vested and expected to vest, June 30, 2022	1,949,374	$	11.76	7.00	$	2,611
Options exercisable, June 30, 2022	1,334,116	$	10.76	6.55	$	2,365

The intrinsic value is calculated as the difference between the fair value of the Company's common stock and the exercise price of the stock options. As of June 30, 2022, total unrecognized compensation cost related to option awards was $4.2 million, which is expected to be recognized over a remaining weighted-average vesting period of 1.6 years.

Restricted Stock Units

Restricted stock unit activity under the Company's 2019 Plan is set forth below:


	Number of Shares	Weighted- Average Grant Date Fair Value		Aggregate Intrinsic Value (in thousands)
Outstanding, December 31, 2021	415,325	$	16.54	$	4,830
Awards granted	540,225	$	8.66
Awards released	(90,821)	$	17.05
Awards canceled	(79,789)	$	11.96
Outstanding, June 30, 2022	784,940	$	11.53	$	4,506

As of June 30, 2022, total unrecognized compensation cost related to restricted stock units was $8.2 million, which is expected to be recognized over a remaining weighted-average vesting period of 3.3 years.

Stock-Based Compensation Expense

Stock Options

The fair value of employee stock options was estimated using the following assumptions to determine the fair value of stock options granted:


	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
Expected volatility	54%	83%	54%	83%-84%
Risk-free interest rate	3.4%	1.1%	3.4%	0.8%-1.1%
Dividend yield	—	—	—	—
Expected term (in years)	5.50	5.50-6.08	5.50	5.50-6.08

Employee Stock Purchase Plan

The following assumptions were used to calculate the stock-based compensation for each stock purchase right granted under the ESPP:


	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
Expected volatility	45%	60%	45%	60%
Risk-free interest rate	0.6%	0.1%	0.6%	0.1%
Dividend yield	—	—	—	—
Expected term (in years)	0.50	0.50	0.50	0.50

Stock-based compensation expense for the ESPP was less than $0.1 million for the three and six months ended June 30, 2022 and 2021. As of June 30, 2022, total unrecognized compensation cost related to stock purchase rights granted under the ESPP was less than $0.1 million, which is expected to be recognized over a remaining weighted-average vesting period of 0.2 years.


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Costs of revenue	$	59	$	61	$	103	$	72
Selling, general and administrative	1,203		1,049		2,321		1,840
Research and development	178		175		392		285
Total	$	1,440	$	1,285	$	2,816	$	2,197

Borrowings - Future minimum payments (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Debt Disclosure [Abstract]
2022 (remaining)	$ 837
2023	1,686
2024	2,980
2025	16,152
2026	14,786
Total	36,441
Unamortized debt discount and issuance costs	(182)
Interest	(8,431)
Total borrowings, net of discounts and debt issuance costs	$ 27,828

Borrowings - Narrative (Details)		1 Months Ended		3 Months Ended		6 Months Ended
Borrowings - Narrative (Details)	Dec. 07, 2018 USD ($)	Nov. 30, 2021 USD ($) installment	Sep. 30, 2017 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)
Loan payable \| Capital Royalty Partners II LP
Debt Instrument [Line Items]
Loan repayment			$ 17,800,000
2017 Term loan \| Loan payable \| Innovatus Life Sciences Lending Fund
Debt Instrument [Line Items]
Term loan borrowings	$ 5,000,000		$ 20,000,000			$ 0
Term loan, interest rate		8.00%
Term loan, paid in-kind, interest rate		2.00%
Term loan, effective interest rate		8.50%
Number of monthly installments \| installment		24
Term loan, fee incurred upon payment of final installment				$ 1,000,000		$ 1,000,000
Term loan, prepayment premium percentage		3.00%
Term loan, annual reduction in prepayment penalty percentage		1.00%
Term loan, covenant, revenue performance period						12 months
Term loan, covenant, number of days to cure covenant if performance measure is not met						60 days
Term loan covenant, minimum unrestricted cash balance		$ 2,000,000.0
Term loan covenant, increase to interest rate				4.00%		4.00%
2017 Term loan \| Paid in-kind note \| Innovatus Life Sciences Lending Fund
Debt Instrument [Line Items]
Term loan, paid in-kind loans issued				$ 100,000	$ 100,000	$ 300,000	$ 300,000

Restatement of Previously Issued Financial Statements

6 Months Ended

Jun. 30, 2022

Accounting Changes and Error Corrections [Abstract]

Restatement of Previously Issued Financial Statements

The Company has restated previously issued financial statements and related disclosures as of and for the three and six months ended June 30, 2022 included in our Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission (the SEC) on August 4, 2022 (the Original Quarterly Report), in order to correct misstatements resulting from erroneous and duplicate billings included in revenue. The applicable Notes to Condensed Financial Statements were also updated to reflect the restatement.

Impact of Restatement

In November 2022 management determined that the Company made certain errors in revenue resulting from erroneous and duplicate billings related to changes in billing practices. The errors were due to the inadequate

design and implementation and precision of internal controls and procedures to evaluate and monitor the accounting for revenue recognition. As a result, the Company determined that there were material errors in the financial statements that required a restatement of the financial statements for the three and six months ended June 30, 2022 in the Original Quarterly Report. The effect of these errors was a $1.4 million overstatement of revenue for the three and six months ended June 30, 2022; in addition to, a $0.9 million overstatement of accounts receivable and a $0.5 million understatement of other liabilities as of June 30, 2022.


Condensed Balance Sheet	June 30, 2022
	As Originally Reported		Adjustments		As Restated
Assets
Accounts receivable, net	$	9,590	$	(875)	$	8,715
Total current assets	89,039		(875)		88,164
Total assets	107,724		(875)		106,849

Liabilities and Stockholders' Equity
Accrued and other current liabilities	5,489		481		5,970
Total current liabilities	9,573		481		10,054
Total liabilities	43,544		481		44,025
Accumulated deficit	(231,721)		(1,356)		(233,077)
Total stockholders' equity	64,180		(1,356)		62,824
Total liabilities and stockholders' equity	107,724		(875)		106,849


Condensed Statement of Operations	Three Months Ended June 30, 2022
	As Originally Reported		Adjustments		As Restated
Revenue	$	8,962	$	(1,356)	$	7,606
Loss from operations	(12,708)		(1,356)		(14,064)
Net loss	(13,309)		(1,356)		(14,665)
Net loss per share, basic and diluted	(0.78)		(0.08)		(0.86)


Condensed Statement of Operations	Six Months Ended June 30, 2022
	As Originally Reported		Adjustments		As Restated
Revenue	$	19,356	$	(1,356)	$	18,000
Loss from operations	(22,387)		(1,356)		(23,743)
Net loss	(23,581)		(1,356)		(24,937)
Net loss per share, basic and diluted	(1.39)		(0.07)		(1.46)


Condensed Statement of Cash Flows	Six Months Ended June 30, 2022
	As Originally Reported		Adjustments		As Restated
Cash flows from operating activities:
Net loss	$	(23,581)	$	(1,356)	$	(24,937)
Changes in assets and liabilities:
Accounts receivable, net.	64		875		939
Accrued and other current liabilities	(1,232)		481		(751)
Net cash used in operating activities	(19,728)		—		(19,728)

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Financial Instrument Measured on a Recurring Basis

The following table sets forth the Company's financial instruments that were measured at fair value on a recurring basis within the fair value hierarchy (in thousands):


	June 30, 2022
	Total		Level 1		Level 2		Level 3
Assets:
Money market funds, included in cash and cash equivalents	$	72,078	$	72,078	$	—	$	—


	December 31, 2021
	Total		Level 1		Level 2		Level 3
Assets:
Money market funds, included in cash and cash equivalents	$	95,761	$	95,761	$	—	$	—

Stock Option Plan - Stock Option Activity (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding, December 31, 2021 (in shares)	2,014,330
Granted (in shares)	63,000
Forfeited (in shares)	(102,110)
Expired (in shares)	(25,846)
Outstanding, March 31, 2022 (in shares)	1,949,374	2,014,330
Vested and expected to vest, March 31, 2022 (in shares)	1,949,374
Options exercisable, March 31, 2022 (in shares)	1,334,116
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding, December 31, 2021, Weighted Average Exercise Price (in dollars per share)	$ 12.10
Granted, Weighted Average Exercise Price (in dollars per share)	5.25
Forfeited, Weighted Average Exercise Price (in dollars per share)	13.79
Expired, Weighted Average Exercise Price (in dollars per share)	14.39
Outstanding, March 31, 2022, Weighted Average Exercise Price (in dollars per share)	11.76	$ 12.10
Vested and expected to vest, March 31, 2022 (in shares), Weighted Average Exercise Price (in dollars per share)	11.76
Options exercised, March 31, 2022 (in shares), Weighted Average Exercise Price (in dollars per share)	$ 10.76
Stock Options, Additional Disclosures [Abstract]
Outstanding, Weighted Average Remaining Contractual Term	7 years	7 years 10 months 13 days
Vested and expected to vest, Weighted Average Remaining Contractual Term	7 years
Options exercisable, Weighted Average Remaining Contractual Term	6 years 6 months 18 days
Outstanding, Aggregate Intrinsic Value	$ 2,611	$ 5,428
Vested and expected to vest, Aggregate Intrinsic Value	2,611
Options exercisable, Aggregate Intrinsic Value	$ 2,365

Leases - Narrative (Details) - USD ($)		3 Months Ended	6 Months Ended
Leases - Narrative (Details) - USD ($)	Aug. 23, 2021	Jun. 30, 2021	Jun. 30, 2021	Jun. 30, 2022
Loss Contingencies [Line Items]
Operating lease, rent expense		$ 200,000	$ 300,000
Office and Laboratory
Loss Contingencies [Line Items]
Operating lease, renewal term				5 years
Office
Loss Contingencies [Line Items]
Operating lease monthly base rent	$ 66,021
Operating lease annual increase in base rent payment percent	3.00%
Minimum
Loss Contingencies [Line Items]
Finance lease, term of contract				3 years
Maximum
Loss Contingencies [Line Items]
Finance lease, term of contract				5 years

Restatement of Previously Issued Financial Statements - Income Statement (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue	$ 7,606		$ 12,772		$ 18,000	$ 23,359
Loss from operations	(14,064)		(5,742)		(23,743)	(11,309)
Net loss	$ (14,665)	$ (10,272)	$ (6,410)	$ (6,209)	$ (24,937)	$ (12,619)
Net loss per share, basic (in dollars per share)	$ (0.86)		$ (0.38)		$ (1.46)	$ (0.84)
Net loss per share, diluted (in dollars per share)	$ (0.86)		$ (0.38)		$ (1.46)	$ (0.84)
As Originally Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue	$ 8,962				$ 19,356
Loss from operations	(12,708)				(22,387)
Net loss	$ (13,309)				$ (23,581)
Net loss per share, basic (in dollars per share)	$ (0.78)				$ (1.39)
Net loss per share, diluted (in dollars per share)	$ (0.78)				$ (1.39)
Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue	$ (1,356)				$ (1,356)
Loss from operations	(1,356)				(1,356)
Net loss	$ (1,356)				$ (1,356)
Net loss per share, basic (in dollars per share)	$ (0.08)				$ (0.07)
Net loss per share, diluted (in dollars per share)	$ (0.08)				$ (0.07)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Summary of Significant Accounting Policies - Narrative (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) installment segment	Jun. 30, 2021 USD ($)	Jan. 01, 2022 USD ($)	Dec. 31, 2021 USD ($)
New Accounting Pronouncement, Early Adoption [Line Items]
Restricted cash	$ 100,000		$ 100,000			$ 100,000
Increase (decrease) in variable consideration	(1,200,000)	$ 100,000	(1,600,000)	$ (100,000)
Revenue	7,606,000	12,772,000	18,000,000	23,359,000
Advertising expense	600,000	400,000	$ 900,000	600,000
Number of operating segments \| segment			1
Operating lease liabilities	6,006,000		$ 6,006,000
Operating lease right-of-use assets	5,338,000		$ 5,338,000			0
Cumulative Effect, Period of Adoption, Adjustment \| Accounting Standards Update 2016-02
New Accounting Pronouncement, Early Adoption [Line Items]
Operating lease liabilities					$ 6,400,000
Operating lease right-of-use assets					5,900,000
Deferred rent credit					$ 500,000
Janssen Promotion Agreement
New Accounting Pronouncement, Early Adoption [Line Items]
Termination of agreement						$ 600,000
Restricted stock units
New Accounting Pronouncement, Early Adoption [Line Items]
Number of annual vesting installments \| installment			4
Janssen (SIMPONI)
New Accounting Pronouncement, Early Adoption [Line Items]
Revenue	0	300,000	$ 0	600,000
Shipping and Handling
New Accounting Pronouncement, Early Adoption [Line Items]
Cost of revenue	$ 700,000	$ 600,000	$ 1,300,000	$ 1,000,000.0
Revenue Benchmark \| Product Concentration Risk \| AVISE CTD Test
New Accounting Pronouncement, Early Adoption [Line Items]
Percent of total revenue	77.00%	77.00%	81.00%	81.00%
Revenue Benchmark \| Supplier Concentration Risk \| Two Major Suppliers
New Accounting Pronouncement, Early Adoption [Line Items]
Percent of total revenue	97.00%	97.00%	96.00%	97.00%

Leases - Supplemental Cash Flow Information On Leases And Weighted-Average Lease Term (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash out flows from operating leases	$ 557
Operating cash out flows from interest paid on finance leases	40
Financing cash out flows from finance leases	$ 303	$ 220
Weighted-average remaining lease term (years)
Operating leases	4 years 9 months 18 days
Finance leases	2 years 4 months 24 days
Weighted-average discount rate
Operating leases	8.00%
Finance leases	5.50%

Fair Value Measurements (Details) - Recurring - Money market funds, included in cash and cash equivalents - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Assets:
Money market funds, included in cash and cash equivalents	$ 72,078	$ 95,761
Level 1
Assets:
Money market funds, included in cash and cash equivalents	72,078	95,761
Level 2
Assets:
Money market funds, included in cash and cash equivalents	0	0
Level 3
Assets:
Money market funds, included in cash and cash equivalents	$ 0	$ 0

Leases - Costs Associated with the Company's Leases (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022
Leases [Abstract]
Operating lease cost	$ 384	$ 773
Amortization of lease assets	158	315
Interest on finance lease liabilities	21	40
Total lease cost	563	1,128
Variable lease cost	$ 42	$ 84

Leases

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Leases

The Company adopted ASC 842, Leases, as of January 1, 2022. Prior period amounts have not been adjusted and continue to be reported in accordance with the Company's historic accounting under ASC 840, Leases.

Operating Leases

The Company leases office and laboratory spaces in Vista, California, under leases that expire in April 2027, with an option to extend portions of the leases for additional 5-year periods. The Company has not included the optional renewal periods in the measurement of the lease liabilities because it is not reasonably certain that the Company will exercise these renewal options. The Company's lease payments under each of these leases are subject to escalation clauses.

Effective on August 23, 2021, the Company entered into a sub-lease agreement for an additional office space in Carlsbad, California. The sub-lease commenced in October 2021 and expires in April 2027. The sub-lease agreement provides for monthly base rent of $66,021 which began on October 1, 2021, and such amount shall increase by approximately 3% annually beginning October 1, 2022. The Company is entitled to base rent abatement for a specified period of time which began on November 1, 2021.

The Company determines if a contract contains a lease at inception or modification of a contract. The Company discounts their lease obligations using its incremental borrowing rate at the commencement date. The incremental borrowing rate is the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. The Company primarily considers industry data, its credit rating and the lease term to determine its incremental borrowing rate.

Finance Leases

The Company has entered into various finance lease agreements to obtain laboratory equipment. The terms of the Company's finance leases generally range from three to five years and are typically secured by the underlying equipment. The portion of the future payments designated as principal repayments were classified as finance lease liabilities on the Company's balance sheet.

Operating and Finance Leases Balances and Costs

Operating and finance leases consist of the following (in thousands):

Lease Balance

Classification

June 30, 2022

Lease Assets

Operating

Operating lease right-of-use assets

5,338

Finance

Property and equipment, net

1,579

Lease Liabilities

Current

Operating

Operating lease liabilities

979

Finance

Accrued and other current liabilities

679

Non-current

Operating

Non-current operating lease liabilities

5,027

Finance

Other non-current liabilities

781

Costs associated with the Company's leases were included in the statements of operations as follows (in thousands):


Lease Cost	Three months ended June 30, 2022		Six months ended June 30, 2022
Operating leases
Operating lease cost(1)	$	384	$	773
Finance lease cost
Amortization of lease assets	158		315
Interest on finance lease liabilities	21		40
Total lease cost	$	563	$	1,128

(1) Includes variable lease cost of $42,000 and $84,000 for the three and six months ended June 30, 2022, respectively.

Supplemental cash flow information on leases is as follows (in thousands):


Cash paid for amounts included in the measurement of lease liabilities	Six months ended June 30, 2022
Operating cash out flows from operating leases	$	557
Operating cash out flows from interest paid on finance leases	$	40
Financing cash out flows from finance leases	$	303

Information regarding the weighted-average lease term and weighted average discount rate are as follows:


	June 30, 2022
Weighted-average remaining lease term (years)
Operating leases	4.8
Finance leases	2.4
Weighted-average discount rate
Operating leases	8.0	%
Finance leases	5.5	%

Future payments under operating and finance leases as of June 30, 2022 are as follows (in thousands):


	Operating Leases		Finance Leases
2022 (remaining)	$	705	$	378
2023	1,446		672
2024	1,489		418
2025	1,533		92
2026	1,584		—
Thereafter	539		—
Total minimum lease payments	7,296		1,560
Less: imputed interest	(1,290)		(100)
Total lease liabilities	6,006		1,460
Less: current portion	(979)		(679)
Lease obligations, net of current portion	$	5,027	$	781

Disclosures Under ASC 840

Minimum annual lease payments under non-cancelable operating lease arrangements as of December 31, 2021 are as follows (in thousands):


Years Ending December 31,	Operating Leases
2022	$	1,337
2023	1,445
2024	1,489
2025	1,533
2026	1,584
Thereafter	539
Total minimum lease payments	$	7,927

For the three and six months ended June 30, 2021, rent expense was $0.2 million and $0.3 million, respectively.

Leases

Operating Leases

Finance Leases

Operating and Finance Leases Balances and Costs

Operating and finance leases consist of the following (in thousands):

Lease Balance

Classification

June 30, 2022

Lease Assets

Operating

Operating lease right-of-use assets

5,338

Finance

Property and equipment, net

1,579

Lease Liabilities

Current

Operating

Operating lease liabilities

979

Finance

Accrued and other current liabilities

679

Non-current

Operating

Non-current operating lease liabilities

5,027

Finance

Other non-current liabilities

781

Costs associated with the Company's leases were included in the statements of operations as follows (in thousands):


Lease Cost	Three months ended June 30, 2022		Six months ended June 30, 2022
Operating leases
Operating lease cost(1)	$	384	$	773
Finance lease cost
Amortization of lease assets	158		315
Interest on finance lease liabilities	21		40
Total lease cost	$	563	$	1,128

(1) Includes variable lease cost of $42,000 and $84,000 for the three and six months ended June 30, 2022, respectively.

Supplemental cash flow information on leases is as follows (in thousands):


Cash paid for amounts included in the measurement of lease liabilities	Six months ended June 30, 2022
Operating cash out flows from operating leases	$	557
Operating cash out flows from interest paid on finance leases	$	40
Financing cash out flows from finance leases	$	303

Information regarding the weighted-average lease term and weighted average discount rate are as follows:


	June 30, 2022
Weighted-average remaining lease term (years)
Operating leases	4.8
Finance leases	2.4
Weighted-average discount rate
Operating leases	8.0	%
Finance leases	5.5	%

Future payments under operating and finance leases as of June 30, 2022 are as follows (in thousands):


	Operating Leases		Finance Leases
2022 (remaining)	$	705	$	378
2023	1,446		672
2024	1,489		418
2025	1,533		92
2026	1,584		—
Thereafter	539		—
Total minimum lease payments	7,296		1,560
Less: imputed interest	(1,290)		(100)
Total lease liabilities	6,006		1,460
Less: current portion	(979)		(679)
Lease obligations, net of current portion	$	5,027	$	781

Disclosures Under ASC 840

Minimum annual lease payments under non-cancelable operating lease arrangements as of December 31, 2021 are as follows (in thousands):


Years Ending December 31,	Operating Leases
2022	$	1,337
2023	1,445
2024	1,489
2025	1,533
2026	1,584
Thereafter	539
Total minimum lease payments	$	7,927

For the three and six months ended June 30, 2021, rent expense was $0.2 million and $0.3 million, respectively.

Stock Option Plan - Fair Value Assumptions (Details)	3 Months Ended		6 Months Ended
Stock Option Plan - Fair Value Assumptions (Details)	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	54.00%	83.00%	54.00%
Expected volatility rate, minimum				83.00%
Expected volatility rate, maximum				84.00%
Risk-free interest rate	3.40%	1.10%	3.40%
Risk-free interest rate, minimum				0.80%
Risk-free interest rate, maximum				1.10%
Dividend yield	0.00%	0.00%	0.00%	0.00%
Stock options \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	5 years 6 months	5 years 6 months	5 years 6 months	5 years 6 months
Stock options \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)				6 years 29 days
Employee stock purchase plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	45.00%	60.00%	45.00%	60.00%
Risk-free interest rate	0.60%	0.10%	0.60%	0.10%
Dividend yield	0.00%	0.00%	0.00%	0.00%
Expected term (in years)	6 months	6 months	6 months	6 months
Employee stock purchase plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)		6 years 29 days

Stock Option Plan - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 1,440	$ 1,285	$ 2,816	$ 2,197
Costs of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	59	61	103	72
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1,203	1,049	2,321	1,840
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 178	$ 175	$ 392	$ 285

Summary of Significant Accounting Policies - Revenue by Major Payers (Details) - Customer Concentration Risk	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Medicare Advantage \| Revenue Benchmark
Disaggregation of Revenue [Line Items]
Percent of total revenue	23.00%	13.00%	19.00%	12.00%
Medicare Advantage \| Accounts Receivable, Net
Disaggregation of Revenue [Line Items]
Percent of total revenue			10.00%
Medicare \| Revenue Benchmark
Disaggregation of Revenue [Line Items]
Percent of total revenue	15.00%	19.00%	18.00%	19.00%
Medicare \| Accounts Receivable, Net
Disaggregation of Revenue [Line Items]
Percent of total revenue			10.00%
Aetna \| Revenue Benchmark
Disaggregation of Revenue [Line Items]
Percent of total revenue	10.00%
Aetna \| Accounts Receivable, Net
Disaggregation of Revenue [Line Items]
Percent of total revenue			10.00%
Blue Shield \| Revenue Benchmark
Disaggregation of Revenue [Line Items]
Percent of total revenue		11.00%		11.00%
Blue Shield \| Accounts Receivable, Net
Disaggregation of Revenue [Line Items]
Percent of total revenue					19.00%
United Healthcare \| Accounts Receivable, Net
Disaggregation of Revenue [Line Items]
Percent of total revenue			14.00%		18.00%

Other Financial Information - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Other Financial Information [Abstract]
Depreciation and amortization	$ 0.3	$ 0.2	$ 0.6	$ 0.4

Commitment and Contingencies	6 Months Ended
Commitment and Contingencies	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Acquisition-related liabilities In connection with the acquisition of the medical diagnostics division of Royalty Pharma Collection Trust (Royalty Pharma) (formerly known as Cypress Bioscience, Inc.) in 2010, the Company was required to pay certain amounts in the event that certain revenue milestones were achieved and upon the first commercial sale of a product associated with this acquisition, for which the obligations no longer exist. In addition, the Company has ongoing royalty payment obligations with Royalty Pharma of 2.5% on net sales of products which incorporate certain acquired technologies. Future royalties payable under these arrangements are limited to the lesser of (i) an aggregate of $1.2 million (including an upfront payment of $0.1 million) and (ii) the total royalties earned through January 1, 2024. Licensing Agreements The Company has licensed technology for use in its diagnostic tests. In addition to the milestone payments required by these agreements as described above, individual license agreements generally provide for ongoing royalty payments ranging from 1.5% to 7.0% on net sales of products which incorporate licensed technology, as defined in such agreements. Royalties are accrued when earned and recorded in costs of revenue in the accompanying condensed statements of operations. In May 2021, the Company entered into an exclusive license agreement with Allegheny Health Network Research Institute (AHN), to obtain an exclusive license to AHN's patent rights in certain inventions, pursuant to which the Company paid AHN an initial license fee of $0.4 million. In addition, under the terms of the exclusive license agreement, the Company is required to pay the greater of royalties in the low single digits on net sales of diagnostic tests using the assigned patents or a flat annual minimum royalty amount, pending approvals and commercialization. In November 2021, the Company entered into an exclusive license agreement with Queen Mary University of London (QMUL), to obtain an exclusive license to QMUL's patent rights in certain inventions, pursuant to which the Company paid QMUL an initial license fee of $0.4 million. The Company is obligated to make a one-time payment of $0.1 million relating to the first commercial sale of the licensed products. In addition, after the first 18 months of commercial sales under the terms of the exclusive license agreement, the Company is required to pay royalties in the high single-digits on net sales of testing products using the assigned patents, pending approvals and commercialization. Supply Agreement In December 2021, the Company entered into an amended supply agreement with one supplier for reagents which includes minimum annual purchase commitments of $6.0 million and $6.9 million for the years ending December 31, 2022 and 2023, respectively, with a 15% annual increase thereafter for unconditional minimum purchase commitments through the year ending December 31, 2025. Collaboration Obligations In May 2021, the Company entered into a master research collaboration agreement with AHN, pursuant to which the Company is required to pay AHN a collaboration fee of $0.4 million for each year during the initial term of the agreement. Collaboration expenses under the master research collaboration agreement were $0.1 million for each of the three months ended June 30, 2022 and 2021. Collaboration expenses under the master research collaboration agreement were $0.2 million and $0.1 million, for the six months ended June 30, 2022 and 2021, respectively. Collaboration expenses under the AHN collaboration are included in research and development expenses. Equipment Purchase Obligations In May 2022, the Company ordered laboratory equipment costing approximately $1.2 million, which is expected to be received in the third quarter of 2022. Upon receipt of the equipment, monthly payments of approximately $25,000 will commence and continue for 48 months. Contingencies In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications; including for subpoenas and other civil investigative demands, from governmental agencies, Medicare or Medicaid payors and managed care organizations reviewing billing practices or requesting comment on allegations of billing irregularities that are brought to their attention through billing audits or third parties. The Company's exposure under these agreements is unknown because it involves claims that may be made against the Company in the future, but have not yet been made or that the Company believes to be immaterial. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. Litigation From time to time, the Company may be subject to various legal proceedings that arise in the ordinary course of business activities. The Company does not believe the outcome of any such matters will have a material effect on its financial position or results of operations.

Stock Option Plan - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 1,440	$ 1,285	$ 2,816	$ 2,197
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, unrecognized compensation cost	$ 4,200		$ 4,200
Stock options, cost not yet recognized, remaining weighted average vesting period			1 year 7 months 6 days
Employee stock purchase plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares that remain available for future awards (in shares)	453,484		453,484
Maximum employee payroll deduction percentage	20.00%		20.00%
Stock options, cost not yet recognized, remaining weighted average vesting period			2 months 12 days
Stock-based compensation expense	$ 100	$ 100	$ 100	$ 100
Unrecognized compensation cost related to stock purchase	100		100
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, unrecognized compensation cost	$ 8,200		$ 8,200
Stock options, cost not yet recognized, remaining weighted average vesting period			3 years 3 months 18 days
2019 Incentive Award Plan \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, expiration period			10 years
Stock options, vesting period			4 years
Shares that remain available for future awards (in shares)	1,430,690		1,430,690

Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	Jun. 22, 2021	Mar. 25, 2021	Nov. 10, 2020	Jun. 30, 2022	Mar. 31, 2021
Class of Stock [Line Items]
Estimated offering expenses for aggregate expenses					$ 4,435
Number of warrants exercised (in shares)				0
Exchanging Stockholders
Class of Stock [Line Items]
Number of shares exchanged for warrants (in shares)	804,951
Class of warrant or right, exercise price of warrants or rights (in dollars per share)	$ 0.001
Sale of stock, percentage of ownership after transaction	4.99%
Common Stock
Class of Stock [Line Items]
Sale of stock, number shares issued (in shares)		4,255,000	150,000,000.0
Shares issued in public offering, price per share (in dollars per share)		$ 16.25
Proceeds from public offering, net		$ 64,700
Estimated offering expenses for aggregate expenses		$ 4,400

Unaudited Condensed Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities:
Net loss	$ (24,937)	$ (12,619)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	597	407
Amortization of debt discount and debt issuance costs	78	148
Non-cash interest expense	272	266
Non-cash lease expense	514	0
Stock-based compensation	2,816	2,197
Changes in assets and liabilities:
Accounts receivable, net	939	130
Prepaid expenses and other current assets	576	987
Other assets	(201)	(13)
Operating lease liabilities	(382)	0
Accounts payable	751	(102)
Accrued and other current liabilities	(751)	(163)
Net cash used in operating activities	(19,728)	(8,762)
Cash flows from investing activities:
Purchases of property and equipment	(3,033)	(881)
Net cash used in investing activities	(3,033)	(881)
Cash flows from financing activities:
Proceeds from exercise of stock options	0	79
Payments of taxes withheld on vested restricted stock units	(222)	0
Proceeds from common stock issued under Employee Stock Purchase Plan	231	175
Principal payments on finance lease obligations	(303)	(220)
Proceeds from the issuance of common stock in public offering, gross	0	69,144
Payment of issuance costs related to public offering	0	(4,407)
Net cash (used in) provided by financing activities	(294)	64,771
Net change in cash, cash equivalents and restricted cash	(23,055)	55,128
Cash, cash equivalents and restricted cash, beginning of period	99,542	57,548
Cash, cash equivalents and restricted cash, end of period	76,487	112,676
Supplemental disclosure of cash flow information:
Cash paid for interest	860	892
Supplemental disclosure of non-cash items:
Equipment purchased under finance lease obligations	293	940
Costs incurred, but not paid, in connection with capital expenditures	391	91
Deferred offering costs reclassified to equity	$ 0	$ 28

Other Financial Information (Tables)

6 Months Ended

Jun. 30, 2022

Other Financial Information [Abstract]

Prepaid Expenses and Other Current Assets

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


	June 30, 2022		December 31, 2021
Diagnostic testing supplies	$	1,077	$	1,091
Prepaid product royalties	44		49
Prepaid maintenance and insurance contracts	1,511		2,008
Other prepaid expenses and other current assets	430		490
Prepaid expenses and other current assets	$	3,062	$	3,638

Property and Equipment

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


	June 30, 2022		December 31, 2021
Furniture and fixtures	$	98	$	83
Laboratory equipment	4,846		4,361
Computer equipment and software	1,274		1,206
Leasehold improvements	1,367		1,151
Construction in progress	4,103		1,855
Total property and equipment	11,688		8,656
Less: accumulated depreciation and amortization	(4,472)		(3,884)
Property and equipment, net	$	7,216	$	4,772

Accrued and Other Current Liabilities

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


	June 30, 2022		December 31, 2021
	(As Restated)
Accrued payroll and related expenses	$	2,900	$	4,048

Accrued interest	136		139
Accrued purchases of goods and services	1,040		510
Accrued royalties	124		180
Accrued clinical study activity	158		254
Finance lease obligations, current portion	679		587
Refund liability	481		—
Other accrued liabilities	452		1,108
Accrued and other current liabilities	$	5,970	$	6,826

Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Revenue	$ 7,606	$ 12,772	$ 18,000	$ 23,359
Healthcare insurers
Disaggregation of Revenue [Line Items]
Revenue	4,510	7,381	10,933	13,408
Government
Disaggregation of Revenue [Line Items]
Revenue	1,139	2,394	3,259	4,403
Client
Disaggregation of Revenue [Line Items]
Revenue	1,755	2,427	3,346	4,392
Other
Disaggregation of Revenue [Line Items]
Revenue	202	270	462	556
Janssen (SIMPONI)
Disaggregation of Revenue [Line Items]
Revenue	$ 0	$ 300	$ 0	$ 600

- Definition

+ References

+ Details

Other Financial Information

6 Months Ended

Jun. 30, 2022

Other Financial Information [Abstract]

Other Financial Information

Prepaid Expenses and Other Current Assets

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


	June 30, 2022		December 31, 2021
Diagnostic testing supplies	$	1,077	$	1,091
Prepaid product royalties	44		49
Prepaid maintenance and insurance contracts	1,511		2,008
Other prepaid expenses and other current assets	430		490
Prepaid expenses and other current assets	$	3,062	$	3,638

Property and Equipment, Net

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


	June 30, 2022		December 31, 2021
Furniture and fixtures	$	98	$	83
Laboratory equipment	4,846		4,361
Computer equipment and software	1,274		1,206
Leasehold improvements	1,367		1,151
Construction in progress	4,103		1,855
Total property and equipment	11,688		8,656
Less: accumulated depreciation and amortization	(4,472)		(3,884)
Property and equipment, net	$	7,216	$	4,772

Depreciation and amortization expense for the three months ended June 30, 2022 and 2021 was approximately $0.3 million and $0.2 million, respectively, and for the six months ended June 30, 2022 and 2021, was approximately $0.6 million and $0.4 million, respectively.

Accrued and Other Current Liabilities

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


	June 30, 2022		December 31, 2021
	(As Restated)
Accrued payroll and related expenses	$	2,900	$	4,048

Accrued interest	136		139
Accrued purchases of goods and services	1,040		510
Accrued royalties	124		180
Accrued clinical study activity	158		254
Finance lease obligations, current portion	679		587
Refund liability	481		—
Other accrued liabilities	452		1,108
Accrued and other current liabilities	$	5,970	$	6,826

Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Schedule of Outstanding Warrants

The following equity classified warrants to purchase common stock were outstanding as of June 30, 2022:


	Shares	Exercise Price		Issuance date	Expiration date
Common stock warrants	237,169	$	1.84	January 19, 2016	January 19, 2026
Common stock warrants	67,086	$	1.84	March 31, 2016	March 31, 2026
Common stock warrants	131	$	1.84	April 1, 2016	April 1, 2026
Common stock warrants	83,778	$	14.32	September 7, 2017	September 7, 2024
Common stock warrants	20,944	$	14.32	December 7, 2018	December 7, 2025
Common stock warrants (Exchange Warrants)	804,951	$	0.001	June 22, 2021	None
	1,214,059

During the three and six months ended June 30, 2022, no warrants to purchase common stock was exercised.

Restatement of Previously Issued Financial Statements - Balance Sheets (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Assets
Accounts receivable, net	$ 8,715		$ 9,654
Total current assets	88,164		112,734
Total assets	106,849		123,445
Liabilities and Stockholders' Equity
Accrued and other current liabilities	5,970		6,826
Total current liabilities	10,054		9,318
Total liabilities	44,025		38,509
Accumulated deficit	(233,077)		(208,140)
Stockholders' Equity Attributable to Parent	62,824	$ 76,156	84,936	$ 96,380	$ 101,470	$ 41,839
Total liabilities and stockholders' equity	106,849		$ 123,445
As Originally Reported
Assets
Accounts receivable, net	9,590
Total current assets	89,039
Total assets	107,724
Liabilities and Stockholders' Equity
Accrued and other current liabilities	5,489
Total current liabilities	9,573
Total liabilities	43,544
Accumulated deficit	(231,721)
Stockholders' Equity Attributable to Parent	64,180
Total liabilities and stockholders' equity	107,724
Adjustments
Assets
Accounts receivable, net	(875)
Total current assets	(875)
Total assets	(875)
Liabilities and Stockholders' Equity
Accrued and other current liabilities	481
Total current liabilities	481
Total liabilities	481
Accumulated deficit	(1,356)
Stockholders' Equity Attributable to Parent	(1,356)
Total liabilities and stockholders' equity	$ (875)

Unaudited Condensed Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 76,387	$ 99,442
Accounts receivable, net	8,715	9,654
Prepaid expenses and other current assets	3,062	3,638
Total current assets	88,164	112,734
Property and equipment, net	7,216	4,772
Operating lease right-of-use assets	5,338	0
Goodwill	5,506	5,506
Other assets	625	433
Total assets	106,849	123,445
Current liabilities:
Accounts payable	3,105	2,492
Operating lease liabilities	979	0
Accrued and other current liabilities	5,970	6,826
Total current liabilities	10,054	9,318
Borrowings-non-current portion, net of discounts and debt issuance costs	27,828	27,478
Non-current operating lease liabilities	5,027	0
Deferred tax liabilities	306	306
Other non-current liabilities	810	1,407
Total liabilities	44,025	38,509
Commitments and contingencies (Note 6)
Stockholders' equity:
Preferred stock, $0.001 par value; 10,000,000 shares authorized, no shares issued or outstanding as of June 30, 2022 and December 31, 2021	0	0
Common stock, $0.001 par value; 200,000,000 shares authorized as of June 30, 2022 and December 31, 2021; 16,258,807 and 16,164,994 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively	16	16
Additional paid-in capital	295,885	293,060
Accumulated deficit	(233,077)	(208,140)
Total stockholders' equity	62,824	84,936
Total liabilities and stockholders' equity	$ 106,849	$ 123,445

Unaudited Condensed Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Preferred stock
Par value (in dollars per share)	$ 0.001	$ 0.001
Shares authorized (in shares)	10,000,000	10,000,000
Shares issued (in shares)	0	0
Shares outstanding (in shares)	0	0
Common stock
Par value (in dollars per share)	$ 0.001	$ 0.001
Shares authorized (in shares)	200,000,000	200,000,000
Shares issued (in shares)	16,258,807	16,164,994
Shares outstanding (in shares)	16,258,807	16,164,994