VCYT 10-Q

Veracyte, Inc. (VCYT)

10-Q 2021-05-10 For: 2021-03-31

View Original

Added on April 11, 2026

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


						Page No.
PART I. — FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements (Unaudited)						1
Condensed Consolidated Balance Sheets as of March 31 , 202 1 and December 31, 20 20						1
Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Month Periods Ended March 31 , 202 1 and 20 20						2
Condensed Consolidated Statements of Stockholders' Equity for the Three Month Period s Ended March 31 , 202 1 and 20 20						3
Condensed Consolidated Statements of Cash Flows for the Three Month Periods Ended March 31 , 202 1 and 20 20						4
Notes to Condensed Consolidated Financial Statements						5
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations						20
Item 3. Quantitative and Qualitative Disclosures About Market Risk						3 7
Item 4. Controls and Procedures						3 7
PART II. — OTHER INFORMATION
Item 1A. Risk Factors						3 8
Item 6. Exhibits						70
SIGNATURES						71


	March 31, 2021		December 31, 2020
			(See Note 1)
Assets
Current assets:
Cash and cash equivalents	$	324,062	$	349,364
Accounts receivable	27,877		18,461
Supplies	6,308		4,657
Prepaid expenses and other current assets	3,845		3,197
Total current assets	362,092		375,679
Property and equipment, net	10,562		8,990
Right-of-use assets - operating lease	15,186		7,843
Intangible assets, net	159,423		59,924
Goodwill	474,838		2,725
Restricted cash	749		603
Other assets	2,286		1,399
Total assets	$	1,025,136	$	457,163
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	7,137	$	3,116
Accrued liabilities	16,254		11,705
Current portion of deferred revenue	454		371
Current portion of acquisition related contingent consideration	5,986		—
Current portion of operating lease liability	2,878		1,589
Total current liabilities	32,709		16,781
Long-term debt	863		810
Deferred revenue, net of current portion	747		829
Deferred tax liability	750		—
Acquisition-related contingent consideration, net of current portion	1,800		7,594
Operating lease liability, net of current portion	14,036		9,917
Total liabilities	50,905		35,931
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized, 0 shares issued and outstanding as of March 31, 2021 and December 31, 2020	—		—
Common stock, $0.001 par value; 125,000,000 shares authorized, 67,236,162 and 58,200,526 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively	67		58
Additional paid-in capital	1,297,626		702,768
Accumulated deficit	(323,462)		(281,594)
Total stockholders’ equity	974,231		421,232
Total liabilities and stockholders’ equity	$	1,025,136	$	457,163


	Three Months Ended March 31,
		2021		2020
Revenue:
Testing revenue		$	33,078	$	26,991
Product revenue		3,059		3,409
Biopharmaceutical revenue		566		722
Total Revenue		36,703		31,122
Operating expenses:
Cost of testing revenue		10,832		10,568
Cost of product revenue		1,490		1,559
Cost of biopharmaceutical revenue		81		116
Research and development		5,336		4,407
Selling and marketing		16,296		17,584
General and administrative		46,282		7,813
Intangible asset amortization		1,801		1,275
Total operating expenses		82,118		43,322
Loss from operations		(45,415)		(12,200)
Interest expense		(53)		(55)
Other (loss) income, net		(195)		539
Loss before income tax benefit		(45,663)		(11,716)
Income tax benefit		(3,795)		—
Net loss and comprehensive loss		$	(41,868)	$	(11,716)
Net loss per common share, basic and diluted		$	(0.66)	$	(0.24)
Shares used to compute net loss per common share, basic and diluted		63,331,702		49,792,631


	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Total Stockholders' Equity
	Shares	Amount
Balance at December 31, 2020	58,201	$	58	$	702,768	$	(281,594)	$	421,232
Sale of common stock in a public offering, net of offering costs of $38,677	8,547	9		593,812		—		593,821
Issuance of common stock on exercise of stock options and vesting of restricted stock units	439	—		2,806		—		2,806
Issuance of common stock under employee stock purchase plan (ESPP)	49	—		1,159		—		1,159
Tax portion of vested restricted stock units	—	—		(6,774)		—		(6,774)
Stock-based compensation expense (employee)	—	—		3,657		—		3,657
Stock-based compensation expense (non-employee)	—	—		16		—		16
Stock-based compensation expense (ESPP)	—	—		182		—		182
Net loss and comprehensive loss	—	—		—		(41,868)		(41,868)
Balance at March 31, 2021	67,236	$	67	$	1,297,626	$	(323,462)	$	974,231


	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Total Stockholders' Equity
	Shares	Amount
Balance at December 31, 2019	49,625	$	50	$	486,090	$	(246,685)	$	239,455
Issuance of common stock on exercise of stock options and vesting of restricted stock units	314	—		981		—		981
Issuance of common stock under ESPP	61	—		1,101		—		1,101
Tax portion of vested restricted stock units	—	—		(2,304)		—		(2,304)
Stock-based compensation expense (employee)	—	—		2,551		—		2,551
Stock-based compensation expense (ESPP)	—	—		354		—		354
Net loss and comprehensive loss	—	—		—		(11,716)		(11,716)
Balance at March 31, 2020	50,000	$	50	$	488,773	$	(258,401)	$	230,422


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	March 31, 2021		December 31, 2020
Medicare	21	%	13	%
UnitedHealthcare	10	%	12	%


	Amounts
Balance as of December 31, 2020	$	2,725
Goodwill Acquired - Decipher Biosciences	472,113
Balance as of March 31, 2021	$	474,838


	March 31, 2021						December 31, 2020						Weighted Average Amortization Period (Years)
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Percepta product technology	$	16,000	$	(6,400)	$	9,600	$	16,000	$	(6,133)	$	9,867	15
Prosigna product technology	4,120		(366)		3,754		4,120		(298)		3,822		15
Prosigna customer relationships	2,430		(648)		1,782		2,430		(526)		1,904		5
nCounter Dx license	46,880		(4,167)		42,713		46,880		(3,386)		43,494		15
LymphMark product technology	990		(189)		801		990		(153)		837		7
Decipher product technology	90,000		(484)		89,516		—		—		—		10
Decipher trade names	4,000		(43)		3,957		—		—		—		5
Total finite-lived intangibles	164,420		(12,297)		152,123		70,420		(10,496)		59,924		11.6
In-process research and development	7,300		—		7,300		—		—		—
Total intangible assets	$	171,720	$	(12,297)	$	159,423	$	70,420	$	(10,496)	$	59,924


Year Ending December 31,	Amounts
2021 remainder of year	$	11,129
2022	14,837
2023	14,837
2024	14,797
2025	14,351
Thereafter	82,172
Total	$	152,123


	March 31, 2021		December 31, 2020
Accrued compensation expenses	$	10,214	$	9,201
Accrued other	6,040		2,504
Total accrued liabilities	$	16,254	$	11,705


	Purchase Price		Nonrecurring Post-Combination Compensation Expense
Upfront cash consideration	$	550,515	$	270
Liabilities incurred	44,179		24,809
Total	$	594,694	$	25,079


Cash and cash equivalents	$	19,782
Accounts receivable	5,765
Supplies inventory	1,641
Prepaids and other current assets	778
Property and equipment, net	1,737
Operating lease assets	7,601
Finite-lived intangible assets	94,000
Indefinite-lived intangible assets	7,300
Restricted cash	146
Other assets	829
Total identifiable assets acquired	139,579
Accounts payable	(2,351)
Accrued liabilities	(4,322)
Operating lease obligations (current)	(1,241)
Operating lease obligations, net of current portion	(4,540)
Deferred tax liability	(4,544)
Net identifiable assets acquired	122,581
Goodwill	472,113
Total purchase price	$	594,694


	Value or Range (Weighted-Average)
Unobservable input	March 31, 2021	December 31, 2020
Discount rate	6.2	6.9
Probability of achievement	70% - 100% (86%)	70% - 100% (86%)


Year Ending December 31,	Amounts
Remainder of 2021	$	2,760
2022	3,770
2023	3,880
2024	3,991
2025	4,103
Thereafter	1,661
Total future minimum lease payments	20,165
Less: amount representing interest	3,251
Present value of future lease payments	16,914
Less: short-term lease liabilities	2,878
Long-term lease liabilities	$	14,036


	Three Months Ended March 31,
		2021		2020		Change		%
Cost of testing revenue:
Laboratory costs		$	5,753	$	6,220	$	(467)	(8)	%
Sample collection costs		1,207		1,221		(14)		(1)	%
Compensation expense		2,335		1,815		520		29	%
License fees and royalties		64		14		50		357	%
Depreciation and amortization		271		253		18		7	%
Other expenses		439		434		5		1	%
Allocations		763		611		152		25	%
Total		$	10,832	$	10,568	$	264	2	%
Cost of product revenue:
Product costs		$	1,196	$	1,220	$	(24)	(2)	%
License fees and royalties		275		339		(64)		(19)	%
Depreciation and amortization		19		—		19		NM
Total		$	1,490	$	1,559	$	(69)	(4)	%
Cost of biopharmaceutical revenue:
Compensation expense		$	38	$	39	$	(1)	(3)	%
Other expenses		43		77		(34)		(44)	%
Total		$	81	$	116	$	(35)	(30)	%


	Three Months Ended March 31,
		2021		2020		Change		%
Research and development expense:
Compensation expense		$	3,888	$	2,870	$	1,018	35	%
Direct research and development expense		630		941		(311)		(33)	%
Professional fees		316		125		191		153	%
Depreciation and amortization		53		78		(25)		(32)	%
Other expenses		32		78		(46)		(59)	%
Allocations		417		315		102		32	%
Total		$	5,336	$	4,407	$	929	21	%


	Three Months Ended March 31,
		2021		2020		Change		%
Selling and marketing expense:
Compensation expense		$	12,157	$	12,515	$	(358)	(3)	%
Direct marketing expense		1,364		1,152		212		18	%
Professional fees		712		325		387		119	%
Other expenses		1,136		2,597		(1,461)		(56)	%
Allocations		927		995		(68)		(7)	%
Total		$	16,296	$	17,584	$	(1,288)	(7)	%


	March 31, 2021		December 31, 2020
Debt principal	$	—	$	—
End-of-term debt obligation	863		810
Total debt obligation	$	863	$	810


	March 31, 2021	December 31, 2020
Stock options and restricted stock units issued and outstanding	4,965,510	4,867,303
Stock options and restricted stock units available for grant under stock option plans	4,851,806	3,061,589
Common stock available for the Employee Stock Purchase Plan	1,522,653	1,571,395
Total	11,339,969	9,500,287