2023Q10001124140false--12-31http://fasb.org/us-gaap/2023#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesNoncurrent100011241402023-01-012023-06-3000011241402023-07-31xbrli:shares00011241402023-06-30iso4217:USD00011241402022-12-31iso4217:USDxbrli:shares00011241402023-04-012023-06-3000011241402022-04-012022-06-3000011241402022-01-012022-06-300001124140us-gaap:CommonStockMember2022-12-310001124140us-gaap:AdditionalPaidInCapitalMember2022-12-310001124140us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001124140us-gaap:RetainedEarningsMember2022-12-310001124140us-gaap:CommonStockMember2023-01-012023-03-310001124140us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-3100011241402023-01-012023-03-310001124140us-gaap:RetainedEarningsMember2023-01-012023-03-310001124140us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001124140us-gaap:CommonStockMember2023-03-310001124140us-gaap:AdditionalPaidInCapitalMember2023-03-310001124140us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310001124140us-gaap:RetainedEarningsMember2023-03-3100011241402023-03-310001124140us-gaap:CommonStockMember2023-04-012023-06-300001124140us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-300001124140us-gaap:RetainedEarningsMember2023-04-012023-06-300001124140us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-06-300001124140us-gaap:CommonStockMember2023-06-300001124140us-gaap:AdditionalPaidInCapitalMember2023-06-300001124140us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300001124140us-gaap:RetainedEarningsMember2023-06-3000011241402022-06-300001124140us-gaap:CommonStockMember2021-12-310001124140us-gaap:AdditionalPaidInCapitalMember2021-12-310001124140us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001124140us-gaap:RetainedEarningsMember2021-12-3100011241402021-12-310001124140us-gaap:CommonStockMember2022-01-012022-03-310001124140us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-3100011241402022-01-012022-03-310001124140us-gaap:RetainedEarningsMember2022-01-012022-03-310001124140us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001124140us-gaap:CommonStockMember2022-03-310001124140us-gaap:AdditionalPaidInCapitalMember2022-03-310001124140us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001124140us-gaap:RetainedEarningsMember2022-03-3100011241402022-03-310001124140us-gaap:CommonStockMember2022-04-012022-06-300001124140us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001124140us-gaap:RetainedEarningsMember2022-04-012022-06-300001124140us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001124140us-gaap:CommonStockMember2022-06-300001124140us-gaap:AdditionalPaidInCapitalMember2022-06-300001124140us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001124140us-gaap:RetainedEarningsMember2022-06-300001124140us-gaap:ConvertibleNotesPayableMember2023-01-012023-06-300001124140us-gaap:ConvertibleNotesPayableMember2022-01-012022-06-300001124140us-gaap:RestrictedStockMember2023-01-012023-06-300001124140us-gaap:RestrictedStockMember2022-01-012022-06-300001124140us-gaap:PerformanceSharesMember2023-01-012023-06-300001124140us-gaap:PerformanceSharesMember2022-01-012022-06-300001124140exas:EmployeeAndNonEmployeesStockOptionMember2023-01-012023-06-300001124140exas:EmployeeAndNonEmployeesStockOptionMember2022-01-012022-06-300001124140exas:SharesIssuedUponAcquisitionMember2023-01-012023-06-300001124140exas:SharesIssuedUponAcquisitionMember2022-01-012022-06-300001124140exas:ScreeningMemberus-gaap:ProductMember2023-04-012023-06-300001124140exas:ScreeningMemberus-gaap:ProductMember2022-04-012022-06-300001124140exas:ScreeningMemberus-gaap:ProductMember2023-01-012023-06-300001124140exas:ScreeningMemberus-gaap:ProductMember2022-01-012022-06-300001124140us-gaap:ServiceMemberexas:ScreeningMember2023-04-012023-06-300001124140us-gaap:ServiceMemberexas:ScreeningMember2022-04-012022-06-300001124140us-gaap:ServiceMemberexas:ScreeningMember2023-01-012023-06-300001124140us-gaap:ServiceMemberexas:ScreeningMember2022-01-012022-06-300001124140us-gaap:ProductAndServiceOtherMemberexas:ScreeningMember2023-04-012023-06-300001124140us-gaap:ProductAndServiceOtherMemberexas:ScreeningMember2022-04-012022-06-300001124140us-gaap:ProductAndServiceOtherMemberexas:ScreeningMember2023-01-012023-06-300001124140us-gaap:ProductAndServiceOtherMemberexas:ScreeningMember2022-01-012022-06-300001124140exas:ScreeningMember2023-04-012023-06-300001124140exas:ScreeningMember2022-04-012022-06-300001124140exas:ScreeningMember2023-01-012023-06-300001124140exas:ScreeningMember2022-01-012022-06-300001124140exas:PrecisionOncologyMemberus-gaap:ProductMember2023-04-012023-06-300001124140exas:PrecisionOncologyMemberus-gaap:ProductMember2022-04-012022-06-300001124140exas:PrecisionOncologyMemberus-gaap:ProductMember2023-01-012023-06-300001124140exas:PrecisionOncologyMemberus-gaap:ProductMember2022-01-012022-06-300001124140us-gaap:ServiceMemberexas:PrecisionOncologyMember2023-04-012023-06-300001124140us-gaap:ServiceMemberexas:PrecisionOncologyMember2022-04-012022-06-300001124140us-gaap:ServiceMemberexas:PrecisionOncologyMember2023-01-012023-06-300001124140us-gaap:ServiceMemberexas:PrecisionOncologyMember2022-01-012022-06-300001124140exas:InternationalSalesMemberexas:PrecisionOncologyMember2023-04-012023-06-300001124140exas:InternationalSalesMemberexas:PrecisionOncologyMember2022-04-012022-06-300001124140exas:InternationalSalesMemberexas:PrecisionOncologyMember2023-01-012023-06-300001124140exas:InternationalSalesMemberexas:PrecisionOncologyMember2022-01-012022-06-300001124140us-gaap:ProductAndServiceOtherMemberexas:PrecisionOncologyMember2023-04-012023-06-300001124140us-gaap:ProductAndServiceOtherMemberexas:PrecisionOncologyMember2022-04-012022-06-300001124140us-gaap:ProductAndServiceOtherMemberexas:PrecisionOncologyMember2023-01-012023-06-300001124140us-gaap:ProductAndServiceOtherMemberexas:PrecisionOncologyMember2022-01-012022-06-300001124140exas:PrecisionOncologyMember2023-04-012023-06-300001124140exas:PrecisionOncologyMember2022-04-012022-06-300001124140exas:PrecisionOncologyMember2023-01-012023-06-300001124140exas:PrecisionOncologyMember2022-01-012022-06-300001124140exas:COVID19TestingMember2023-04-012023-06-300001124140exas:COVID19TestingMember2022-04-012022-06-300001124140exas:COVID19TestingMember2023-01-012023-06-300001124140exas:COVID19TestingMember2022-01-012022-06-300001124140exas:VariablePriceContractMember2023-04-012023-06-300001124140exas:VariablePriceContractMember2022-04-012022-06-300001124140exas:VariablePriceContractMember2023-01-012023-06-300001124140exas:VariablePriceContractMember2022-01-012022-06-300001124140us-gaap:ShortTermInvestmentsMember2023-06-300001124140us-gaap:ShortTermInvestmentsMember2022-12-310001124140us-gaap:CommercialPaperMemberus-gaap:CashEquivalentsMember2023-06-300001124140us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:CashEquivalentsMember2023-06-300001124140us-gaap:CashEquivalentsMember2023-06-300001124140us-gaap:CorporateBondSecuritiesMemberus-gaap:ShortTermInvestmentsMember2023-06-300001124140us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:ShortTermInvestmentsMember2023-06-300001124140us-gaap:ShortTermInvestmentsMemberus-gaap:AssetBackedSecuritiesMember2023-06-300001124140us-gaap:CommercialPaperMemberus-gaap:ShortTermInvestmentsMember2023-06-300001124140us-gaap:CommercialPaperMemberus-gaap:CashEquivalentsMember2022-12-310001124140us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:CashEquivalentsMember2022-12-310001124140us-gaap:CashEquivalentsMember2022-12-310001124140us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:ShortTermInvestmentsMember2022-12-310001124140us-gaap:CorporateBondSecuritiesMemberus-gaap:ShortTermInvestmentsMember2022-12-310001124140us-gaap:ShortTermInvestmentsMemberus-gaap:AssetBackedSecuritiesMember2022-12-310001124140us-gaap:LandMember2023-06-300001124140us-gaap:LandMember2022-12-310001124140exas:BuildingsAndLeaseholdImprovementsMember2023-06-300001124140exas:BuildingsAndLeaseholdImprovementsMember2022-12-310001124140us-gaap:LandImprovementsMember2023-06-300001124140us-gaap:LandImprovementsMember2022-12-310001124140srt:MinimumMemberus-gaap:BuildingMember2023-06-300001124140srt:MaximumMemberus-gaap:BuildingMember2023-06-300001124140us-gaap:BuildingMember2023-06-300001124140us-gaap:BuildingMember2022-12-310001124140exas:OfficeEquipmentAndComputerSoftwareMember2023-06-300001124140exas:OfficeEquipmentAndComputerSoftwareMember2022-12-310001124140us-gaap:EquipmentMembersrt:MinimumMember2023-06-300001124140us-gaap:EquipmentMembersrt:MaximumMember2023-06-300001124140us-gaap:EquipmentMember2023-06-300001124140us-gaap:EquipmentMember2022-12-310001124140us-gaap:FurnitureAndFixturesMembersrt:MinimumMember2023-06-300001124140us-gaap:FurnitureAndFixturesMembersrt:MaximumMember2023-06-300001124140us-gaap:FurnitureAndFixturesMember2023-06-300001124140us-gaap:FurnitureAndFixturesMember2022-12-310001124140us-gaap:AssetUnderConstructionMember2023-06-300001124140us-gaap:AssetUnderConstructionMember2022-12-310001124140us-gaap:ComputerSoftwareIntangibleAssetMember2023-06-300001124140us-gaap:TradeNamesMember2023-06-300001124140us-gaap:CustomerRelationshipsMember2023-06-300001124140us-gaap:PatentsMember2023-06-300001124140us-gaap:DevelopedTechnologyRightsMember2023-06-300001124140us-gaap:TradeNamesMember2022-12-310001124140us-gaap:CustomerRelationshipsMember2022-12-310001124140us-gaap:PatentsMember2022-12-310001124140us-gaap:DevelopedTechnologyRightsMember2022-12-310001124140us-gaap:DevelopedTechnologyRightsMember2022-04-012022-06-300001124140exas:OmicEraMember2022-01-012022-12-310001124140exas:PreventionGeneticsLLCMember2022-01-012022-12-3100011241402022-01-012022-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2023-06-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2023-06-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2023-06-300001124140us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2023-06-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2023-06-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CommercialPaperMember2023-06-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMember2023-06-300001124140us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2023-06-300001124140us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-06-300001124140us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-06-300001124140us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-06-300001124140us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-06-300001124140us-gaap:FairValueMeasurementsRecurringMember2023-06-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-06-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-06-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-06-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMember2023-06-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-06-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CorporateBondSecuritiesMember2023-06-300001124140us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMember2023-06-300001124140us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-06-300001124140us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-06-300001124140us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-06-300001124140us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-06-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2023-06-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:AssetBackedSecuritiesMember2023-06-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:AssetBackedSecuritiesMember2023-06-300001124140us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2023-06-300001124140us-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMember2023-06-300001124140us-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-06-300001124140us-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-06-300001124140us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-06-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2022-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2022-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2022-12-310001124140us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2022-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2022-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CommercialPaperMember2022-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMember2022-12-310001124140us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2022-12-310001124140us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001124140us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-12-310001124140us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-12-310001124140us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001124140us-gaap:FairValueMeasurementsRecurringMember2022-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-12-310001124140us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001124140us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-12-310001124140us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-12-310001124140us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMember2022-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CorporateBondSecuritiesMember2022-12-310001124140us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMember2022-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2022-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:AssetBackedSecuritiesMember2022-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:AssetBackedSecuritiesMember2022-12-310001124140us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2022-12-310001124140us-gaap:OtherCurrentLiabilitiesMember2023-06-300001124140us-gaap:OtherNoncurrentLiabilitiesMember2023-06-300001124140us-gaap:EstimateOfFairValueFairValueDisclosureMemberexas:ThriveAndAshionMember2023-06-300001124140us-gaap:EstimateOfFairValueFairValueDisclosureMemberexas:ThriveAndAshionMember2022-12-310001124140exas:MeasurementInputProbabilityOfSuccessMembersrt:WeightedAverageMemberexas:ProductDevelopmentAndOtherMilestoneBasedPaymentsMember2023-06-30xbrli:pure0001124140exas:MeasurementInputProbabilityOfSuccessMembersrt:WeightedAverageMemberexas:ProductDevelopmentAndOtherMilestoneBasedPaymentsMember2022-12-310001124140srt:WeightedAverageMemberexas:ProductDevelopmentAndOtherMilestoneBasedPaymentsMemberexas:MeasurementInputPresentValueFactorMember2023-06-300001124140srt:WeightedAverageMemberexas:ProductDevelopmentAndOtherMilestoneBasedPaymentsMemberexas:MeasurementInputPresentValueFactorMember2022-12-310001124140exas:RevenueAndOtherPerformanceBasedPaymentsMemberexas:ThriveAndAshionMember2023-06-300001124140us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2023-06-300001124140us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2022-12-310001124140exas:VentureCapitalInvestmentFundMember2023-01-012023-06-300001124140exas:VentureCapitalInvestmentFundMember2023-06-300001124140exas:VentureCapitalInvestmentFundMember2022-12-310001124140us-gaap:ForeignExchangeForwardMember2023-06-300001124140us-gaap:ForeignExchangeForwardMember2022-12-310001124140us-gaap:ForeignExchangeForwardMember2023-04-012023-06-300001124140us-gaap:ForeignExchangeForwardMember2022-01-012022-06-300001124140us-gaap:ForeignExchangeForwardMember2022-04-012022-06-300001124140us-gaap:ForeignExchangeForwardMember2023-01-012023-06-300001124140exas:SecuritizedReceivablesMember2022-06-290001124140exas:SecuritizedReceivablesMembersrt:MinimumMember2022-06-290001124140exas:SecuritizedReceivablesMember2023-06-300001124140us-gaap:RevolvingCreditFacilityMemberexas:RevolvingLoanAgreementMemberus-gaap:LineOfCreditMember2021-11-300001124140us-gaap:RevolvingCreditFacilityMemberexas:DailyBloombergShortTermBankYieldIndexRateMemberexas:RevolvingLoanAgreementMemberus-gaap:LineOfCreditMember2021-11-012021-11-300001124140exas:RevolvingLoanAgreementMemberus-gaap:LineOfCreditMemberus-gaap:LetterOfCreditMember2021-12-012021-12-310001124140exas:RevolvingLoanAgreementMemberus-gaap:LineOfCreditMemberus-gaap:LetterOfCreditMember2023-01-012023-01-310001124140us-gaap:RevolvingCreditFacilityMemberexas:RevolvingLoanAgreementMemberus-gaap:LineOfCreditMember2023-06-300001124140us-gaap:RevolvingCreditFacilityMemberexas:RevolvingLoanAgreementMemberus-gaap:LineOfCreditMember2022-12-310001124140exas:ConvertibleNotesPayable2030Member2023-06-300001124140exas:ConvertibleNotesPayable2030Memberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-06-300001124140exas:ConvertibleNotesPayable2028Member2023-06-300001124140us-gaap:FairValueInputsLevel2Memberexas:ConvertibleNotesPayable2028Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-06-300001124140exas:ConvertibleNotesPayable2027Member2023-06-300001124140us-gaap:FairValueInputsLevel2Memberexas:ConvertibleNotesPayable2027Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-06-300001124140exas:ConvertibleNotesPayable2025Member2023-06-300001124140us-gaap:FairValueInputsLevel2Memberexas:ConvertibleNotesPayable2025Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-06-300001124140exas:ConvertibleNotesPayable2028Member2022-12-310001124140us-gaap:FairValueInputsLevel2Memberexas:ConvertibleNotesPayable2028Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310001124140exas:ConvertibleNotesPayable2027Member2022-12-310001124140us-gaap:FairValueInputsLevel2Memberexas:ConvertibleNotesPayable2027Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310001124140exas:ConvertibleNotesPayable2025Member2022-12-310001124140us-gaap:FairValueInputsLevel2Memberexas:ConvertibleNotesPayable2025Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310001124140exas:ConvertibleNotesPayable2030Member2023-03-010001124140exas:ConvertibleNotesPayable2027Member2023-03-012023-03-310001124140exas:ConvertibleNotesPayable2028Member2023-03-012023-03-310001124140exas:ConvertibleNotesPayable2030Member2023-03-012023-03-3100011241402023-03-012023-03-310001124140exas:ConvertibleNotesPayable2030Memberexas:ConvertibleNotesPayable2025Member2023-03-060001124140exas:ConvertibleNotesPayable2025Member2023-03-012023-03-310001124140exas:ConvertibleNotesPayable2025Member2023-03-012023-03-310001124140exas:ConvertibleNotesPayable2025Member2023-01-012023-06-300001124140exas:ConvertibleNotesPayable2027Member2023-01-012023-06-300001124140exas:ConvertibleNotesPayable2028Member2023-01-012023-06-300001124140exas:ConvertibleNotesPayable2030Member2023-01-012023-06-300001124140exas:ConvertibleNotesPayable2030Member2023-04-012023-06-300001124140exas:ConvertibleNotesPayable2030Member2022-04-012022-06-300001124140exas:ConvertibleNotesPayable2030Member2022-01-012022-06-300001124140exas:ConvertibleNotesPayable2028Member2023-04-012023-06-300001124140exas:ConvertibleNotesPayable2028Member2022-04-012022-06-300001124140exas:ConvertibleNotesPayable2028Member2022-01-012022-06-300001124140exas:ConvertibleNotesPayable2027Member2023-04-012023-06-300001124140exas:ConvertibleNotesPayable2027Member2022-04-012022-06-300001124140exas:ConvertibleNotesPayable2027Member2022-01-012022-06-300001124140exas:ConvertibleNotesPayable2025Member2023-04-012023-06-300001124140exas:ConvertibleNotesPayable2025Member2022-04-012022-06-300001124140exas:ConvertibleNotesPayable2025Member2022-01-012022-06-300001124140us-gaap:LicensingAgreementsMemberexas:MAYOFoundationMember2020-09-30exas:installment0001124140us-gaap:LicensingAgreementsMemberexas:MAYOFoundationMember2023-01-012023-06-300001124140us-gaap:LicensingAgreementsMemberexas:MAYOFoundationMember2023-04-012023-06-300001124140us-gaap:LicensingAgreementsMemberexas:MAYOFoundationMember2022-04-012022-06-300001124140us-gaap:LicensingAgreementsMemberexas:MAYOFoundationMember2022-01-012022-06-300001124140us-gaap:LicensingAgreementsMemberexas:ThriveEarlierDetectionCorporationMemberexas:SalesMilestoneRangeOneMember2021-01-050001124140us-gaap:LicensingAgreementsMemberexas:ThriveEarlierDetectionCorporationMemberexas:SalesMilestoneRangeTwoMember2021-01-050001124140exas:SalesMilestoneRangeThreeMemberus-gaap:LicensingAgreementsMemberexas:ThriveEarlierDetectionCorporationMember2021-01-050001124140us-gaap:LicensingAgreementsMemberexas:ThriveEarlierDetectionCorporationMemberexas:SalesMilestoneRangeOneMember2021-01-052021-01-050001124140us-gaap:LicensingAgreementsMemberexas:ThriveEarlierDetectionCorporationMemberexas:SalesMilestoneRangeTwoMember2021-01-052021-01-050001124140exas:SalesMilestoneRangeThreeMemberus-gaap:LicensingAgreementsMemberexas:ThriveEarlierDetectionCorporationMember2021-01-052021-01-050001124140exas:ProductRevenueRelatedToMRDDetectionPaymentOneMemberus-gaap:LicensingAgreementsMemberexas:TgenMember2021-01-310001124140us-gaap:LicensingAgreementsMemberexas:ProductRevenueRelatedToMRDDetectionPaymentTwoMemberexas:TgenMember2021-01-310001124140us-gaap:LicensingAgreementsMemberexas:TgenMemberexas:ProductRevenueRelatedToTreatmentPaymentOneMember2021-01-310001124140us-gaap:LicensingAgreementsMemberexas:ProductRevenueRelatedToTreatmentPaymentTwoMemberexas:TgenMember2021-01-310001124140exas:TheBroadInstituteLLCMember2023-06-302023-06-300001124140exas:ProductDevelopmentAndOtherMilestoneBasedPaymentsMemberus-gaap:LicensingAgreementsMemberexas:TheBroadInstituteLLCMember2023-06-300001124140us-gaap:LicensingAgreementsMemberexas:TheBroadInstituteLLCMemberexas:SalesMilestoneRangeOneMember2023-06-302023-06-300001124140exas:PfizerIncMemberus-gaap:ManufacturedProductOtherMember2021-11-300001124140exas:PfizerIncMemberus-gaap:ManufacturedProductOtherMember2022-04-012022-06-300001124140exas:PfizerIncMemberus-gaap:ManufacturedProductOtherMember2022-01-012022-06-300001124140exas:OmicEraDiagnosticsAcquisitionMember2022-05-012022-05-310001124140exas:OmicEraDiagnosticsAcquisitionMember2022-05-010001124140us-gaap:AccumulatedTranslationAdjustmentMember2022-12-310001124140us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-12-310001124140us-gaap:AccumulatedTranslationAdjustmentMember2023-01-012023-06-300001124140us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-01-012023-06-300001124140us-gaap:AccumulatedTranslationAdjustmentMember2023-06-300001124140us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-06-300001124140us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310001124140us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-12-310001124140us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-06-300001124140us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-012022-06-300001124140us-gaap:AccumulatedTranslationAdjustmentMember2022-06-300001124140us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-06-300001124140us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-06-300001124140us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-06-300001124140us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-06-300001124140us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-06-300001124140exas:StockBasedCompensationPlansMember2023-06-300001124140exas:StockBasedCompensationPlansMember2023-01-012023-06-300001124140exas:StockBasedCompensationPlansMember2022-12-310001124140exas:StockBasedCompensationPlansMember2022-12-312022-12-310001124140exas:StockBasedCompensationPlansMember2022-01-012022-06-300001124140exas:RestrictedStockAwardsAndRestrictedStockUnitsRSUMember2022-12-310001124140exas:RestrictedStockAwardsAndRestrictedStockUnitsRSUMember2023-01-012023-06-300001124140exas:RestrictedStockAwardsAndRestrictedStockUnitsRSUMember2023-06-300001124140us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-06-300001124140exas:RestrictedStockAwardsAndRestrictedStockUnitsRSUMember2022-01-012022-06-300001124140us-gaap:PerformanceSharesMember2022-12-310001124140us-gaap:PerformanceSharesMember2023-01-012023-06-300001124140us-gaap:PerformanceSharesMember2023-06-300001124140us-gaap:PerformanceSharesMember2022-01-012022-06-300001124140us-gaap:EmployeeStockMember2023-04-012023-06-300001124140us-gaap:EmployeeStockMember2022-04-012022-06-300001124140us-gaap:EmployeeStockMember2023-01-012023-06-300001124140us-gaap:EmployeeStockMember2022-01-012022-06-300001124140srt:MinimumMemberus-gaap:EmployeeStockMember2023-04-012023-06-300001124140srt:MinimumMemberus-gaap:EmployeeStockMember2022-04-012022-06-300001124140srt:MaximumMemberus-gaap:EmployeeStockMember2022-04-012022-06-300001124140srt:MinimumMemberus-gaap:EmployeeStockMember2023-01-012023-06-300001124140srt:MinimumMemberus-gaap:EmployeeStockMember2022-01-012022-06-300001124140srt:MaximumMemberus-gaap:EmployeeStockMember2022-01-012022-06-300001124140exas:DOSRuleInvestigationMember2023-06-300001124140exas:QuiTamSuitMember2023-06-300001124140exas:WisconsinEconomicDevelopmentTaxCreditAgreementMember2015-02-280001124140exas:WisconsinEconomicDevelopmentTaxCreditAgreementMember2015-02-012015-02-28exas:position0001124140exas:AmendedWisconsinEconomicDevelopmentTaxCreditAgreementMember2021-12-310001124140exas:AmendedWisconsinEconomicDevelopmentTaxCreditAgreementMember2021-12-012021-12-310001124140exas:WisconsinEconomicDevelopmentTaxCreditAgreementMember2020-12-310001124140exas:WisconsinEconomicDevelopmentTaxCreditAgreementMember2022-12-310001124140exas:AmendedWisconsinEconomicDevelopmentTaxCreditAgreementMember2023-06-300001124140us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberexas:AmendedWisconsinEconomicDevelopmentTaxCreditAgreementMember2023-06-300001124140us-gaap:OtherNoncurrentAssetsMemberexas:AmendedWisconsinEconomicDevelopmentTaxCreditAgreementMember2023-06-300001124140us-gaap:OperatingExpenseMemberexas:AmendedWisconsinEconomicDevelopmentTaxCreditAgreementMember2023-04-012023-06-300001124140us-gaap:OperatingExpenseMemberexas:AmendedWisconsinEconomicDevelopmentTaxCreditAgreementMember2022-04-012022-06-300001124140us-gaap:OperatingExpenseMemberexas:AmendedWisconsinEconomicDevelopmentTaxCreditAgreementMember2023-01-012023-06-300001124140us-gaap:OperatingExpenseMemberexas:AmendedWisconsinEconomicDevelopmentTaxCreditAgreementMember2022-01-012022-06-300001124140country:US2023-04-012023-06-300001124140country:US2022-04-012022-06-300001124140country:US2023-01-012023-06-300001124140country:US2022-01-012022-06-300001124140us-gaap:NonUsMember2023-04-012023-06-300001124140us-gaap:NonUsMember2022-04-012022-06-300001124140us-gaap:NonUsMember2023-01-012023-06-300001124140us-gaap:NonUsMember2022-01-012022-06-30exas:segment0001124140exas:BrianBaranickMember2023-04-012023-06-300001124140exas:BrianBaranickMember2023-06-300001124140exas:SarahCondellaMember2023-04-012023-06-300001124140exas:SarahCondellaMemberexas:SarahCondellaTradingArrangementSharesMember2023-06-300001124140exas:SarahCondellaTradingArrangementGiftMemberexas:SarahCondellaMember2023-06-300001124140exas:KevinConroyMember2023-04-012023-06-300001124140exas:KevinConroyMember2023-06-300001124140exas:DScottCowardMember2023-04-012023-06-300001124140exas:DScottCowardMember2023-06-300001124140exas:JeffreyElliotMember2023-04-012023-06-300001124140exas:JeffreyElliotMember2023-06-30

☒ 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

(Exact name of registrant as specified in its charter)

(608) 535-8815 (Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value per share

EXAS

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically, if any, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer			☒			Accelerated filer			☐
Non-accelerated filer			☐			Smaller reporting company			☐
Emerging growth company			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of July 31, 2023, the registrant had 180,665,327 shares of common stock outstanding.

Part I — Financial Information

Exact Sciences Corporation (together with its subsidiaries, “Exact,” or the “Company”) was incorporated in February 1995. Exact is a leading global cancer diagnostics company. It has developed some of the most impactful tests in cancer screening and diagnostics, including Cologuard® and Oncotype DX®. Exact is currently working on the development of additional tests, with the goal of bringing new, innovative cancer tests to patients throughout the world.

The accompanying condensed consolidated financial statements, which include the accounts of the Company and those of its wholly owned subsidiaries and variable interest entities, are unaudited and have been prepared on a basis substantially consistent with the Company’s audited financial statements and notes as of and for the year ended December 31, 2022 included in the Company’s Annual Report on Form 10-K (the “2022 Form 10-K”). All intercompany transactions and balances have been eliminated upon consolidation. These condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted (“GAAP”) in the United States of America (“U.S.”) and follow the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of adjustments of a normal and recurring nature) considered necessary for a fair statement of its financial position, operating results and cash flows for the periods presented. The condensed consolidated balance sheet at December 31, 2022 has been derived from audited financial statements, but does not contain all of the footnote disclosures from the 2022 Form 10-K. The results of the Company’s operations for any interim period are not necessarily indicative of the results of the Company’s operations for any other interim period or for a full fiscal year. The statements should be read in conjunction with the audited financial statements and related notes included in the 2022 Form 10-K.

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Critical accounting policies are those that affect the Company’s financial statements materially and involve difficult, subjective or complex judgments by management, and actual results could differ from those estimates. These estimates include revenue recognition, valuation of intangible assets and goodwill, and accounting for income taxes among others. The Company’s critical accounting policies and estimates are explained further in the notes to the condensed consolidated financial statements in this Quarterly Report on Form 10-Q and the 2022 Form 10-K.

During the six months ended June 30, 2023, there were no changes to the Company’s significant accounting policies as described in the Company’s 2022 Form 10-K.

The Company did not adopt any accounting standards updates (“ASU”) released by the Financial Accounting Standards Board (“FASB”) during the three and six months ended June 30, 2023. In addition, there are no ASUs not yet adopted that are expected to impact the Company.

Basic net loss per common share was determined by dividing net loss applicable to common stockholders by the weighted average common shares outstanding during the period. Basic and diluted net loss per share is the same because all outstanding common stock equivalents have been excluded, as they are anti-dilutive as a result of the Company’s losses.

The following potentially issuable common shares were not included in the computation of diluted net loss per share because they would have an anti-dilutive effect due to net losses for each period:

The Company’s revenue is primarily generated by its laboratory testing services utilizing its Cologuard and Oncotype® tests. The services are considered completed upon release of a patient’s test result to the ordering healthcare provider.

The following table presents the Company’s revenues disaggregated by revenue source:

Screening revenue primarily includes laboratory service revenue from Cologuard and Prevention Genetics, LLC (“PreventionGenetics”) tests while Precision Oncology revenue includes laboratory service revenue from global Oncotype products and therapy selection products.

At each reporting period end, the Company conducts an analysis of the estimates used to calculate the transaction price to determine whether any new information available impacts those estimates made in prior reporting periods. The Company recognized revenue from a change in transaction price of $7.4 million and $7.1 million for the three months ended June 30, 2023 and 2022, respectively. The Company recognized revenue from a change in transaction price of $19.1 million and $11.3 million for the six months ended June 30, 2023 and 2022, respectively.

The Company’s deferred revenue, which is reported in other current liabilities in the Company’s condensed consolidated balance sheets, was not material as of June 30, 2023 and December 31, 2022.

Revenue recognized for the three and six months ended June 30, 2023 and 2022 that was included in the deferred revenue balance at the beginning of the period was not material.

The following table sets forth the Company’s cash, cash equivalents, and marketable securities at June 30, 2023 and December 31, 2022:

Available-for-sale debt securities, including the classification within the condensed consolidated balance sheet at June 30, 2023, consisted of the following:

______________

(1)There was no tax impact from the gains and losses in accumulated other comprehensive income (loss) (“AOCI”).

Available-for-sale debt securities, including the classification within the condensed consolidated balance sheet at December 31, 2022, consisted of the following:

______________

(1)There was no tax impact from the gains and losses in AOCI.

The following table summarizes contractual underlying maturities of the Company’s available-for-sale debt securities at June 30, 2023:

The following table summarizes the gross unrealized losses and fair values of available-for-sale debt securities in an unrealized loss position as of June 30, 2023 aggregated by investment category and length of time those individual securities have been in a continuous unrealized loss position:

The Company evaluates investments that are in an unrealized loss position for impairment as a result of credit loss. It was determined that no credit losses exist as of June 30, 2023 and December 31, 2022 because the change in market value for those securities in an unrealized loss position resulted from fluctuating interest rates rather than a deterioration of the credit worthiness of the issuers.

The gains and losses recorded on available-for-sale debt securities and equity securities are included in investment income (loss), net in the Company’s condensed consolidated statements of operations. The gains and losses recorded were not material for the three and six months ended June 30, 2023 and 2022.

Inventory consisted of the following:

The carrying value and estimated useful lives of property, plant and equipment are as follows:

______________

(1)Lesser of remaining lease term, building life, or estimated useful life.

Depreciation expense for the three months ended June 30, 2023 and 2022 was $27.5 million and $25.5 million, respectively. Depreciation expense for the six months ended June 30, 2023 and 2022 was $54.3 million and $48.5 million, respectively.

At June 30, 2023, the Company had $83.5 million of assets under construction, which consisted of $59.9 million in laboratory equipment, $12.4 million in capitalized costs related to software projects, $6.0 million in leasehold and building improvements, and $5.2 million related to buildings. Depreciation will begin on these assets once they are placed into service upon completion.

The following table summarizes the net-book-value and estimated remaining life of the Company’s intangible assets as of June 30, 2023:

The following table summarizes the net-book-value and estimated remaining life of the Company’s intangible assets as of December 31, 2022:

______________

(1)The gross carrying amount includes an immaterial foreign currency translation adjustment related to the intangible asset acquired as a result of the acquisition of OmicEra Diagnostics GmbH (“OmicEra”), whose functional currency is also its local currency. Intangible asset balances are translated into U.S. dollars using exchange rates in effect at period end, and adjustments related to foreign currency translation are included in other comprehensive income.

As of June 30, 2023 the estimated future amortization expense associated with the Company’s finite-lived intangible assets for each of the five succeeding fiscal years is as follows:

The Company’s acquired intangible assets are being amortized on a straight-line basis over their estimated useful lives.

During the second quarter of 2022, the Company recorded a non-cash, pre-tax impairment loss of $6.6 million related to the acquired developed technology intangible asset acquired as a result of the acquisition of Paradigm Diagnostics, Inc. due to lower than anticipated performance of the underlying product. The impairment is recorded in impairment of long-lived assets in the condensed consolidated statement of operations for the three and six months ended June 30, 2022.

The change in the carrying amount of goodwill for the periods ended June 30, 2023 and December 31, 2022 is as follows:

______________

(1)Represents the impact of foreign currency translation related to the goodwill acquired as a result of the acquisition of OmicEra. Goodwill balances are translated into U.S. dollars using exchange rates in effect at period end, and adjustments related to foreign currency translation are included in other comprehensive income.

There were no impairment losses for the three and six months ended June 30, 2023 and 2022.

The three levels of the fair value hierarchy established are as follows:

Level 1    Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2    Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

Level 3    Unobservable inputs that reflect the Company’s assumptions about the assumptions that market participants would use in pricing the asset or liability. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available.

The following table presents the Company’s fair value measurements as of June 30, 2023 along with the level within the fair value hierarchy in which the fair value measurements, in their entirety, fall.

The following table presents the Company’s fair value measurements as of December 31, 2022 along with the level within the fair value hierarchy in which the fair value measurements, in their entirety, fall.

There have been no changes in valuation techniques or transfers between fair value measurement levels during the three and six months ended June 30, 2023. The fair value of Level 2 instruments classified as cash equivalents and marketable debt securities are valued using a third-party pricing agency where the valuation is based on observable inputs including pricing for similar assets and other observable market factors.

The Company has elected the fair value option under the income approach to measure its non-marketable securities categorized as Level 3 measurements. Gains and losses recorded on non-marketable securities are included in investment income (loss), net in the condensed consolidated statement of operations. The following table provides a reconciliation of the beginning and ending balances of non-marketable securities valued using the fair value option:

The fair value of the contingent consideration liabilities as of June 30, 2023 was $302.1 million, of which $18.9 million was recorded in other current liabilities and $283.2 million was recorded in other long-term liabilities. The fair value of the contingent consideration liability as of December 31, 2022 was $306.9 million, which was recorded in other long-term liabilities in the condensed consolidated balance sheets.

The following table provides a reconciliation of the beginning and ending balances of contingent consideration: