| Balance Sheet Components |
6. Balance Sheet Components Allowance for Expected Credit Losses The following is a roll-forward of the allowances for expected credit losses related to trade accounts receivable for the three and six months ended June 30, 2025 and 2024: | | | | | | | | | Three Months Ended | | | June 30, | | | 2025 | | 2024 | | | | | (in thousands) | Beginning balance | | $ | 7,434 | | $ | 7,252 | Provision for (Reversal of) expected credit losses | | | 411 | | | (185) | Write-offs | | | (22) | | | (46) | Total | | $ | 7,823 | | $ | 7,021 |
| | | | | | | | | Six Months Ended | | | June 30, | | | 2025 | | 2024 | | | | | (in thousands) | Beginning balance | | $ | 7,259 | | $ | 6,481 | Provision for expected credit losses | | | 606 | | | 744 | Write-offs | | | (42) | | | (204) | Total | | $ | 7,823 | | $ | 7,021 |
Property and Equipment, net The Company’s property and equipment consists of the following: | | | | | | | | | June 30, | | December 31, | | Useful Life | 2025 | | 2024 | | | (in thousands) | Machinery and equipment | 3-5 years | $ | 139,784 | | $ | 117,076 | Computer equipment | 3 years | | 3,338 | | | 3,178 | Purchased and capitalized software held for internal use | 3 years | | 14,901 | | | 13,178 | Leasehold improvements | Lesser of useful life or lease term | | 49,146 | | | 48,569 | Construction-in-process | | | 73,706 | | | 58,461 | | | | 280,875 | | | 240,462 | Less: Accumulated depreciation and amortization | | | (91,651) | | | (78,416) | Total property and equipment, net | | $ | 189,224 | | $ | 162,046 |
The Company’s long-lived assets are located in the United States. The Company did not incur any impairment charges during the six months ended June 30, 2025 or 2024. Depreciation expense for the six months ended June 30, 2025 and 2024 was $17.1 million and $13.3 million, respectively. Other Accrued Liabilities The Company’s other accrued liabilities consisted of the following: | | | | | | | | June 30, | | December 31, | | | 2025 | | 2024 | | | | (in thousands) | | Reserves for refunds to insurance carriers | $ | 9,700 | | $ | 11,276 | | Accrued charges for third-party testing | | 17,188 | | | 12,321 | | Testing and laboratory materials from suppliers | | 12,522 | | | 7,893 | | Marketing and corporate affairs | | 16,572 | | | 16,548 | | Legal, audit and consulting fees | | 84,747 | | | 54,208 | | Accrued shipping charges | | 2,545 | | | 1,625 | | Sales and income tax payable | | 6,535 | | | 4,416 | | Accrued third-party service fees | | 8,945 | | | 9,046 | | Clinical trials and studies | | 9,604 | | | 10,097 | | Operating lease liabilities, current portion | | 13,056 | | | 10,168 | | Property and equipment purchases | | 7,581 | | | 7,098 | | Other accrued expenses | | 2,039 | | | 2,197 | | Total other accrued liabilities | $ | 191,034 | | $ | 146,893 | |
The following table summarizes the reserve balance and activities for refunds to insurance carriers for the six months ending June 30, 2025 and 2024: | | | | | | | June 30, | | 2025 | | 2024 | | | (in thousands) | Beginning balance | $ | 11,276 | | $ | 23,245 | Additional (reversals) reserves | | (703) | | | 1,065 | Refunds to carriers | | — | | | (3,095) | Reserves released to revenue | | (873) | | | (4,750) | Ending balance | $ | 9,700 | | $ | 16,465 |
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