10-Q 1 exas-20210930.htm 10-Q exas-20210930
2021Q30001124140false--12-310.13260.08960.0821http://fasb.org/us-gaap/2021-01-31#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesNoncurrentP4YP4Y100011241402021-01-012021-09-30xbrli:shares00011241402021-11-01iso4217:USD00011241402021-09-3000011241402020-12-31iso4217:USDxbrli:shares00011241402021-07-012021-09-3000011241402020-07-012020-09-3000011241402020-01-012020-09-300001124140us-gaap:CommonStockMember2020-12-310001124140us-gaap:AdditionalPaidInCapitalMember2020-12-310001124140us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001124140us-gaap:RetainedEarningsMember2020-12-3100011241402021-01-012021-03-310001124140us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001124140us-gaap:CommonStockMember2021-01-012021-03-310001124140us-gaap:RetainedEarningsMember2021-01-012021-03-310001124140us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001124140us-gaap:CommonStockMember2021-03-310001124140us-gaap:AdditionalPaidInCapitalMember2021-03-310001124140us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001124140us-gaap:RetainedEarningsMember2021-03-3100011241402021-03-3100011241402021-04-012021-06-300001124140us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001124140us-gaap:CommonStockMember2021-04-012021-06-300001124140us-gaap:RetainedEarningsMember2021-04-012021-06-300001124140us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001124140us-gaap:CommonStockMember2021-06-300001124140us-gaap:AdditionalPaidInCapitalMember2021-06-300001124140us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001124140us-gaap:RetainedEarningsMember2021-06-3000011241402021-06-300001124140us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001124140us-gaap:CommonStockMember2021-07-012021-09-300001124140us-gaap:RetainedEarningsMember2021-07-012021-09-300001124140us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001124140us-gaap:CommonStockMember2021-09-300001124140us-gaap:AdditionalPaidInCapitalMember2021-09-300001124140us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001124140us-gaap:RetainedEarningsMember2021-09-3000011241402020-09-300001124140us-gaap:CommonStockMember2019-12-310001124140us-gaap:AdditionalPaidInCapitalMember2019-12-310001124140us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001124140us-gaap:RetainedEarningsMember2019-12-3100011241402019-12-310001124140us-gaap:CommonStockMember2020-01-012020-03-310001124140us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-3100011241402020-01-012020-03-310001124140us-gaap:RetainedEarningsMember2020-01-012020-03-310001124140us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001124140us-gaap:CommonStockMember2020-03-310001124140us-gaap:AdditionalPaidInCapitalMember2020-03-310001124140us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001124140us-gaap:RetainedEarningsMember2020-03-3100011241402020-03-310001124140us-gaap:CommonStockMember2020-04-012020-06-300001124140us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-3000011241402020-04-012020-06-300001124140us-gaap:RetainedEarningsMember2020-04-012020-06-300001124140us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001124140us-gaap:CommonStockMember2020-06-300001124140us-gaap:AdditionalPaidInCapitalMember2020-06-300001124140us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001124140us-gaap:RetainedEarningsMember2020-06-3000011241402020-06-300001124140us-gaap:CommonStockMember2020-07-012020-09-300001124140us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300001124140us-gaap:RetainedEarningsMember2020-07-012020-09-300001124140us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300001124140us-gaap:CommonStockMember2020-09-300001124140us-gaap:AdditionalPaidInCapitalMember2020-09-300001124140us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300001124140us-gaap:RetainedEarningsMember2020-09-300001124140us-gaap:AdditionalPaidInCapitalMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2018-12-310001124140us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2018-12-310001124140srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2018-12-310001124140us-gaap:AdditionalPaidInCapitalMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310001124140us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310001124140srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310001124140srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-12-310001124140us-gaap:AdditionalPaidInCapitalMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-12-310001124140us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-12-310001124140srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-07-012020-09-300001124140srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-01-012020-09-300001124140exas:ConvertibleNotesPayable2025Member2020-01-012020-09-300001124140exas:SharesIssuedUponAcquisitionMember2021-01-012021-09-300001124140exas:SharesIssuedUponAcquisitionMember2020-01-012020-09-300001124140exas:EmployeeAndNonEmployeesStockOptionMember2021-01-012021-09-300001124140exas:EmployeeAndNonEmployeesStockOptionMember2020-01-012020-09-300001124140us-gaap:RestrictedStockMember2021-01-012021-09-300001124140us-gaap:RestrictedStockMember2020-01-012020-09-300001124140us-gaap:PerformanceSharesMember2021-01-012021-09-300001124140us-gaap:PerformanceSharesMember2020-01-012020-09-300001124140us-gaap:ConvertibleNotesPayableMember2021-01-012021-09-300001124140us-gaap:ConvertibleNotesPayableMember2020-01-012020-09-300001124140us-gaap:ProductMemberexas:ScreeningMember2021-07-012021-09-300001124140us-gaap:ProductMemberexas:ScreeningMember2020-07-012020-09-300001124140us-gaap:ProductMemberexas:ScreeningMember2021-01-012021-09-300001124140us-gaap:ProductMemberexas:ScreeningMember2020-01-012020-09-300001124140us-gaap:ServiceMemberexas:ScreeningMember2021-07-012021-09-300001124140us-gaap:ServiceMemberexas:ScreeningMember2020-07-012020-09-300001124140us-gaap:ServiceMemberexas:ScreeningMember2021-01-012021-09-300001124140us-gaap:ServiceMemberexas:ScreeningMember2020-01-012020-09-300001124140exas:ScreeningMemberus-gaap:ProductAndServiceOtherMember2021-07-012021-09-300001124140exas:ScreeningMemberus-gaap:ProductAndServiceOtherMember2020-07-012020-09-300001124140exas:ScreeningMemberus-gaap:ProductAndServiceOtherMember2021-01-012021-09-300001124140exas:ScreeningMemberus-gaap:ProductAndServiceOtherMember2020-01-012020-09-300001124140exas:ScreeningMember2021-07-012021-09-300001124140exas:ScreeningMember2020-07-012020-09-300001124140exas:ScreeningMember2021-01-012021-09-300001124140exas:ScreeningMember2020-01-012020-09-300001124140us-gaap:ProductMemberexas:PrecisionOncologyMember2021-07-012021-09-300001124140us-gaap:ProductMemberexas:PrecisionOncologyMember2020-07-012020-09-300001124140us-gaap:ProductMemberexas:PrecisionOncologyMember2021-01-012021-09-300001124140us-gaap:ProductMemberexas:PrecisionOncologyMember2020-01-012020-09-300001124140us-gaap:ServiceMemberexas:PrecisionOncologyMember2021-07-012021-09-300001124140us-gaap:ServiceMemberexas:PrecisionOncologyMember2020-07-012020-09-300001124140us-gaap:ServiceMemberexas:PrecisionOncologyMember2021-01-012021-09-300001124140us-gaap:ServiceMemberexas:PrecisionOncologyMember2020-01-012020-09-300001124140exas:InternationalSalesMemberexas:PrecisionOncologyMember2021-07-012021-09-300001124140exas:InternationalSalesMemberexas:PrecisionOncologyMember2020-07-012020-09-300001124140exas:InternationalSalesMemberexas:PrecisionOncologyMember2021-01-012021-09-300001124140exas:InternationalSalesMemberexas:PrecisionOncologyMember2020-01-012020-09-300001124140exas:PrecisionOncologyMemberus-gaap:ProductAndServiceOtherMember2021-07-012021-09-300001124140exas:PrecisionOncologyMemberus-gaap:ProductAndServiceOtherMember2020-07-012020-09-300001124140exas:PrecisionOncologyMemberus-gaap:ProductAndServiceOtherMember2021-01-012021-09-300001124140exas:PrecisionOncologyMemberus-gaap:ProductAndServiceOtherMember2020-01-012020-09-300001124140exas:PrecisionOncologyMember2021-07-012021-09-300001124140exas:PrecisionOncologyMember2020-07-012020-09-300001124140exas:PrecisionOncologyMember2021-01-012021-09-300001124140exas:PrecisionOncologyMember2020-01-012020-09-300001124140exas:COVID19TestingMember2021-07-012021-09-300001124140exas:COVID19TestingMember2020-07-012020-09-300001124140exas:COVID19TestingMember2021-01-012021-09-300001124140exas:COVID19TestingMember2020-01-012020-09-300001124140exas:VariablePriceContractMember2021-07-012021-09-300001124140exas:VariablePriceContractMember2020-07-012020-09-300001124140exas:VariablePriceContractMember2021-01-012021-09-300001124140exas:VariablePriceContractMember2020-01-012020-09-300001124140exas:COVID19Member2021-09-300001124140exas:COVID19Member2021-07-012021-09-300001124140exas:COVID19Member2021-01-012021-09-300001124140exas:CashAndMoneyMarketMember2021-09-300001124140exas:CashAndMoneyMarketMember2020-12-310001124140us-gaap:CashAndCashEquivalentsMember2021-09-300001124140us-gaap:CashAndCashEquivalentsMember2020-12-310001124140exas:RestrictedCashMember2021-09-300001124140exas:RestrictedCashMember2020-12-310001124140us-gaap:ShortTermInvestmentsMember2021-09-300001124140us-gaap:ShortTermInvestmentsMember2020-12-310001124140us-gaap:CorporateBondSecuritiesMemberus-gaap:ShortTermInvestmentsMember2021-09-300001124140us-gaap:ShortTermInvestmentsMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-09-300001124140us-gaap:ShortTermInvestmentsMemberus-gaap:CertificatesOfDepositMember2021-09-300001124140us-gaap:CommercialPaperMemberus-gaap:ShortTermInvestmentsMember2021-09-300001124140us-gaap:ShortTermInvestmentsMemberus-gaap:AssetBackedSecuritiesMember2021-09-300001124140us-gaap:CashAndCashEquivalentsMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-12-310001124140us-gaap:ShortTermInvestmentsMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-12-310001124140us-gaap:ShortTermInvestmentsMemberus-gaap:AssetBackedSecuritiesMember2020-12-310001124140us-gaap:CorporateBondSecuritiesMemberus-gaap:ShortTermInvestmentsMember2020-12-310001124140us-gaap:LandMember2021-09-300001124140us-gaap:LandMember2020-12-310001124140exas:BuildingsAndLeaseholdImprovementsMember2021-09-300001124140exas:BuildingsAndLeaseholdImprovementsMember2020-12-310001124140us-gaap:LandImprovementsMember2021-01-012021-09-300001124140us-gaap:LandImprovementsMember2021-09-300001124140us-gaap:LandImprovementsMember2020-12-310001124140srt:MinimumMemberus-gaap:BuildingMember2021-01-012021-09-300001124140srt:MaximumMemberus-gaap:BuildingMember2021-01-012021-09-300001124140us-gaap:BuildingMember2021-09-300001124140us-gaap:BuildingMember2020-12-310001124140exas:OfficeEquipmentAndComputerSoftwareMember2021-01-012021-09-300001124140exas:OfficeEquipmentAndComputerSoftwareMember2021-09-300001124140exas:OfficeEquipmentAndComputerSoftwareMember2020-12-310001124140srt:MinimumMemberus-gaap:EquipmentMember2021-01-012021-09-300001124140us-gaap:EquipmentMembersrt:MaximumMember2021-01-012021-09-300001124140us-gaap:EquipmentMember2021-09-300001124140us-gaap:EquipmentMember2020-12-310001124140srt:MinimumMemberus-gaap:FurnitureAndFixturesMember2021-01-012021-09-300001124140us-gaap:FurnitureAndFixturesMembersrt:MaximumMember2021-01-012021-09-300001124140us-gaap:FurnitureAndFixturesMember2021-09-300001124140us-gaap:FurnitureAndFixturesMember2020-12-310001124140us-gaap:AssetUnderConstructionMember2021-09-300001124140us-gaap:AssetUnderConstructionMember2020-12-310001124140us-gaap:ComputerSoftwareIntangibleAssetMember2021-09-300001124140us-gaap:TradeNamesMember2021-01-012021-09-300001124140us-gaap:TradeNamesMember2021-09-300001124140us-gaap:CustomerRelationshipsMember2021-01-012021-09-300001124140us-gaap:CustomerRelationshipsMember2021-09-300001124140us-gaap:PatentsMember2021-01-012021-09-300001124140us-gaap:PatentsMember2021-09-300001124140us-gaap:DevelopedTechnologyRightsMember2021-01-012021-09-300001124140us-gaap:DevelopedTechnologyRightsMember2021-09-300001124140us-gaap:ServiceAgreementsMember2021-01-012021-09-300001124140us-gaap:ServiceAgreementsMember2021-09-300001124140us-gaap:TradeNamesMember2020-01-012020-12-310001124140us-gaap:TradeNamesMember2020-12-310001124140us-gaap:CustomerRelationshipsMember2020-01-012020-12-310001124140us-gaap:CustomerRelationshipsMember2020-12-310001124140us-gaap:PatentsMember2020-01-012020-12-310001124140us-gaap:PatentsMember2020-12-310001124140us-gaap:DevelopedTechnologyRightsMember2020-01-012020-12-310001124140us-gaap:DevelopedTechnologyRightsMember2020-12-310001124140us-gaap:ServiceAgreementsMember2020-01-012020-12-310001124140us-gaap:ServiceAgreementsMember2020-12-310001124140us-gaap:InProcessResearchAndDevelopmentMember2021-01-012021-09-300001124140us-gaap:InProcessResearchAndDevelopmentMember2021-07-012021-09-300001124140us-gaap:InProcessResearchAndDevelopmentMember2020-07-012020-09-300001124140us-gaap:InProcessResearchAndDevelopmentMember2020-01-012020-09-300001124140us-gaap:InProcessResearchAndDevelopmentMemberexas:ArmuneBiosciencesAgreementMember2020-09-300001124140us-gaap:InProcessResearchAndDevelopmentMemberexas:ArmuneBiosciencesAgreementMember2020-01-012020-09-300001124140us-gaap:InProcessResearchAndDevelopmentMemberexas:ArmuneBiosciencesAgreementMember2020-07-012020-09-300001124140exas:ParadigmViomicsMember2020-01-012020-12-310001124140exas:GenomicHealthIncMember2020-01-012020-12-310001124140exas:ThriveEarlierDetectionCorporationMember2021-01-012021-09-300001124140exas:AshionAnalyticsMember2021-01-012021-09-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2021-09-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2021-09-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2021-09-300001124140us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2021-09-300001124140us-gaap:FairValueMeasurementsRecurringMemberexas:RestrictedCashMember2021-09-300001124140us-gaap:FairValueMeasurementsRecurringMemberexas:RestrictedCashMemberus-gaap:FairValueInputsLevel1Member2021-09-300001124140us-gaap:FairValueMeasurementsRecurringMemberexas:RestrictedCashMemberus-gaap:FairValueInputsLevel2Member2021-09-300001124140us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberexas:RestrictedCashMember2021-09-300001124140us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001124140us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-09-300001124140us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-09-300001124140us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CertificatesOfDepositMember2021-09-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel1Member2021-09-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel2Member2021-09-300001124140us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CertificatesOfDepositMember2021-09-300001124140us-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001124140us-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-09-300001124140us-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-09-300001124140us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-09-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-09-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2021-09-300001124140us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-09-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2021-09-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-09-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Member2021-09-300001124140us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2021-09-300001124140us-gaap:FairValueMeasurementsRecurringMember2021-09-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-09-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-09-300001124140us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2020-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2020-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2020-12-310001124140us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2020-12-310001124140us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001124140us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001124140us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310001124140us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberexas:RestrictedCashMember2020-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberexas:RestrictedCashMemberus-gaap:FairValueInputsLevel1Member2020-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberexas:RestrictedCashMemberus-gaap:FairValueInputsLevel2Member2020-12-310001124140us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberexas:RestrictedCashMember2020-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2020-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2020-12-310001124140us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-12-310001124140us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001124140us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001124140us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310001124140us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2020-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2020-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Member2020-12-310001124140us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2020-12-310001124140us-gaap:FairValueMeasurementsRecurringMember2020-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001124140us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310001124140us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001124140us-gaap:EstimateOfFairValueFairValueDisclosureMemberexas:ThriveAndAshionMember2021-09-30xbrli:pure0001124140exas:ProductDevelopmentAndOtherMilestoneBasedPaymentsMemberexas:MeasurementInputProbabilityOfSuccessMembersrt:WeightedAverageMember2021-09-300001124140exas:MeasurementInputPresentValueFactorMemberexas:ProductDevelopmentAndOtherMilestoneBasedPaymentsMembersrt:WeightedAverageMember2021-09-300001124140exas:RevenueAndOtherPerformanceBasedPaymentsMemberexas:BiomatricaIncMember2021-09-300001124140us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2021-09-300001124140us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2020-12-310001124140us-gaap:ForeignExchangeForwardMember2021-09-300001124140us-gaap:ForeignExchangeForwardMember2020-12-310001124140us-gaap:ConstructionLoansMember2017-12-310001124140us-gaap:ConstructionLoansMemberexas:OneMonthLondonInterbankOfferRateMember2017-12-012017-12-310001124140us-gaap:LetterOfCreditMember2017-12-012017-12-310001124140us-gaap:ConstructionLoansMember2017-12-012017-12-310001124140us-gaap:ConstructionLoansMemberus-gaap:LetterOfCreditMember2017-11-300001124140us-gaap:ConstructionLoansMember2017-11-300001124140us-gaap:ConstructionLoansMember2021-09-300001124140us-gaap:ConstructionLoansMember2020-12-310001124140us-gaap:ConstructionLoansMember2020-01-012020-12-310001124140us-gaap:ConstructionLoansMember2021-01-012021-09-300001124140us-gaap:ConstructionLoansMember2019-12-012019-12-310001124140us-gaap:ConstructionLoansMember2020-06-30exas:agreement0001124140exas:TaxIncrementFinancingLoanAgreementsMember2021-01-012021-09-300001124140exas:TaxIncrementFinancingLoanAgreementsMember2021-09-30exas:employee0001124140exas:TaxIncrementFinancingLoanAgreementsMember2019-12-310001124140exas:ConvertibleNotesPayable2028Member2021-09-300001124140exas:ConvertibleNotesPayable2028Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2021-09-300001124140exas:ConvertibleNotesPayable2027Member2021-09-300001124140us-gaap:EstimateOfFairValueFairValueDisclosureMemberexas:ConvertibleNotesPayable2027Memberus-gaap:FairValueInputsLevel2Member2021-09-300001124140exas:ConvertibleNotesPayable2025Member2021-09-300001124140us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Memberexas:ConvertibleNotesPayable2025Member2021-09-300001124140exas:ConvertibleNotesPayable2028Member2020-12-310001124140exas:ConvertibleNotesPayable2028Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2020-12-310001124140exas:ConvertibleNotesPayable2027Member2020-12-310001124140us-gaap:EstimateOfFairValueFairValueDisclosureMemberexas:ConvertibleNotesPayable2027Memberus-gaap:FairValueInputsLevel2Member2020-12-310001124140exas:ConvertibleNotesPayable2025Member2020-12-310001124140us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Memberexas:ConvertibleNotesPayable2025Member2020-12-310001124140exas:JanuaryNotesMember2018-01-310001124140us-gaap:ConvertibleNotesPayableMember2018-01-310001124140us-gaap:ConvertibleNotesPayableMember2018-01-012018-01-310001124140exas:JuneNotesMember2018-06-300001124140exas:JuneNotesMember2018-06-012018-06-300001124140exas:AggregateConvertibleNotesMember2019-03-310001124140exas:AggregateConvertibleNotesMember2019-03-012019-03-310001124140exas:ConvertibleNotesPayable2027Member2019-03-012019-03-310001124140exas:ConvertibleNotesPayable2025Member2019-03-012019-03-3100011241402019-03-012019-03-310001124140exas:ConvertibleNotesPayable2028Member2020-02-290001124140exas:ConvertibleNotesPayable2028Member2020-02-012020-02-290001124140exas:ConvertibleNotesPayable2025Member2020-02-012020-02-2900011241402020-02-012020-02-290001124140exas:ConvertibleNotesPayable2025Member2021-01-012021-09-300001124140exas:ConvertibleNotesPayable2027Member2021-01-012021-09-300001124140exas:ConvertibleNotesPayable2028Member2021-01-012021-09-300001124140exas:AggregateConvertibleNotesMember2021-01-012021-09-300001124140exas:January2025NotesMember2021-01-012021-09-300001124140exas:June2025NotesMember2021-01-012021-09-300001124140exas:ConvertibleNotesPayable2025Member2021-07-012021-09-300001124140exas:ConvertibleNotesPayable2027Member2021-07-012021-09-300001124140exas:ConvertibleNotesPayable2028Member2021-07-012021-09-300001124140exas:ConvertibleNotesPayable2025Member2020-07-012020-09-300001124140exas:ConvertibleNotesPayable2027Member2020-07-012020-09-300001124140exas:ConvertibleNotesPayable2028Member2020-07-012020-09-300001124140exas:ConvertibleNotesPayable2027Member2020-01-012020-09-300001124140exas:ConvertibleNotesPayable2028Member2020-01-012020-09-300001124140us-gaap:LicensingAgreementsMemberexas:MAYOFoundationMember2020-09-300001124140us-gaap:LicensingAgreementsMemberexas:MAYOFoundationMember2021-07-012021-09-300001124140us-gaap:LicensingAgreementsMemberexas:MAYOFoundationMember2020-07-012020-09-300001124140us-gaap:LicensingAgreementsMemberexas:MAYOFoundationMember2021-01-012021-09-300001124140us-gaap:LicensingAgreementsMemberexas:MAYOFoundationMember2020-01-012020-09-300001124140exas:ThriveEarlierDetectionCorporationMemberexas:SalesMilestoneRangeOneMemberus-gaap:LicensingAgreementsMember2021-01-050001124140exas:ThriveEarlierDetectionCorporationMemberus-gaap:LicensingAgreementsMemberexas:SalesMilestoneRangeTwoMember2021-01-050001124140exas:ThriveEarlierDetectionCorporationMemberus-gaap:LicensingAgreementsMemberexas:SalesMilestoneRangeThreeMember2021-01-050001124140exas:ThriveEarlierDetectionCorporationMemberexas:SalesMilestoneRangeOneMemberus-gaap:LicensingAgreementsMember2021-01-052021-01-050001124140exas:ThriveEarlierDetectionCorporationMemberus-gaap:LicensingAgreementsMemberexas:SalesMilestoneRangeTwoMember2021-01-052021-01-050001124140exas:ThriveEarlierDetectionCorporationMemberus-gaap:LicensingAgreementsMemberexas:SalesMilestoneRangeThreeMember2021-01-052021-01-050001124140exas:PfizerIncMemberus-gaap:ManufacturedProductOtherMember2021-07-012021-09-300001124140exas:PfizerIncMemberus-gaap:ManufacturedProductOtherMember2020-07-012020-09-300001124140exas:PfizerIncMemberus-gaap:ManufacturedProductOtherMember2021-01-012021-09-300001124140exas:PfizerIncMemberus-gaap:ManufacturedProductOtherMember2020-01-012020-09-300001124140exas:AshionAnalyticsMember2021-04-142021-04-140001124140exas:AshionAnalyticsMember2021-04-140001124140exas:ThriveEarlierDetectionCorporationMember2021-01-012021-01-310001124140exas:ThriveEarlierDetectionCorporationMember2021-01-050001124140exas:TARDISTechnologyMember2021-01-112021-01-110001124140exas:ParadigmViomicsMember2020-03-032020-03-0300011241402020-03-012020-03-310001124140exas:ParadigmViomicsMember2020-03-032021-09-300001124140us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-12-310001124140us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-01-012021-09-300001124140us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-09-300001124140us-gaap:AccumulatedTranslationAdjustmentMember2019-12-310001124140us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2019-12-310001124140us-gaap:AccumulatedTranslationAdjustmentMember2020-01-012020-09-300001124140us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-01-012020-09-300001124140us-gaap:AccumulatedTranslationAdjustmentMember2020-09-300001124140us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-09-300001124140us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-300001124140us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-01-012020-09-300001124140us-gaap:AccumulatedTranslationAdjustmentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-300001124140us-gaap:AccumulatedTranslationAdjustmentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-01-012020-09-300001124140us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-300001124140us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-01-012020-09-300001124140exas:StockBasedCompensationPlansMember2021-09-300001124140exas:StockBasedCompensationPlansMember2021-01-012021-09-300001124140exas:EmployeeAndNonEmployeesStockOptionMemberexas:ThriveEarlierDetectionCorporationMember2021-07-012021-09-300001124140exas:ThriveEarlierDetectionCorporationMemberus-gaap:RestrictedStockUnitsRSUMember2021-07-012021-09-300001124140exas:ThriveEarlierDetectionCorporationMember2021-07-012021-09-300001124140exas:EmployeeAndNonEmployeesStockOptionMemberexas:ThriveEarlierDetectionCorporationMember2021-01-012021-09-300001124140exas:ThriveEarlierDetectionCorporationMemberus-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001124140us-gaap:GeneralAndAdministrativeExpenseMemberexas:ThriveEarlierDetectionCorporationMember2021-01-012021-03-310001124140exas:EmployeeAndNonEmployeesStockOptionMember2020-01-012020-09-300001124140srt:MinimumMemberexas:EmployeeAndNonEmployeesStockOptionMember2020-01-012020-09-300001124140srt:MaximumMemberexas:EmployeeAndNonEmployeesStockOptionMember2020-01-012020-09-300001124140exas:StockBasedCompensationPlansMember2020-12-310001124140exas:StockBasedCompensationPlansMember2020-01-012020-12-310001124140exas:StockBasedCompensationPlansMember2020-01-012020-09-300001124140exas:RestrictedStockAwardsAndRestrictedStockUnitsRSUMember2020-12-310001124140exas:RestrictedStockAwardsAndRestrictedStockUnitsRSUMember2021-01-012021-09-300001124140exas:RestrictedStockAwardsAndRestrictedStockUnitsRSUMember2021-09-300001124140exas:RestrictedStockAwardsAndRestrictedStockUnitsRSUMember2020-01-012020-09-300001124140us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-09-300001124140us-gaap:PerformanceSharesMember2020-12-310001124140us-gaap:PerformanceSharesMember2021-01-012021-09-300001124140us-gaap:PerformanceSharesMember2021-09-300001124140us-gaap:PerformanceSharesMember2020-01-012020-09-300001124140us-gaap:EmployeeStockMember2021-01-012021-09-300001124140us-gaap:EmployeeStockMember2020-01-012020-09-300001124140srt:MinimumMemberus-gaap:EmployeeStockMember2021-01-012021-09-300001124140srt:MaximumMemberus-gaap:EmployeeStockMember2021-01-012021-09-300001124140srt:MinimumMemberus-gaap:EmployeeStockMember2020-01-012020-09-300001124140srt:MaximumMemberus-gaap:EmployeeStockMember2020-01-012020-09-300001124140exas:FacilityInLaJollaCAMember2021-09-300001124140exas:DOSRuleInvestigationMember2021-06-300001124140exas:DOSRuleInvestigationMember2021-09-300001124140exas:NewMarketTaxCreditProgramMember2014-10-012014-12-31exas:facility0001124140exas:WisconsinEconomicDevelopmentTaxCreditAgreementMember2015-03-310001124140exas:WisconsinEconomicDevelopmentTaxCreditAgreementMember2015-01-012015-03-310001124140exas:WisconsinEconomicDevelopmentTaxCreditAgreementMember2021-09-300001124140exas:WisconsinEconomicDevelopmentTaxCreditAgreementMember2020-07-012020-09-300001124140exas:WisconsinEconomicDevelopmentTaxCreditAgreementMember2020-01-012020-09-300001124140exas:AshionAnalyticsMemberexas:CommercialLaunchMilestoneMember2021-04-140001124140exas:AshionAnalyticsMemberexas:MRDProductRevenueMilestoneMember2021-04-140001124140exas:ThriveEarlierDetectionCorporationMember2021-01-052021-01-050001124140us-gaap:GeneralAndAdministrativeExpenseMemberexas:ThriveEarlierDetectionCorporationMember2021-01-052021-01-050001124140exas:FDAApprovalMemberexas:ThriveEarlierDetectionCorporationMember2021-01-050001124140exas:CenterForMedicareAndMedicaidServicesCMSCoverageMemberexas:ThriveEarlierDetectionCorporationMember2021-01-050001124140us-gaap:EstimateOfFairValueFairValueDisclosureMemberexas:ThriveEarlierDetectionCorporationMember2021-01-050001124140exas:AllocatedToConsiderationTransferredMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberexas:ThriveEarlierDetectionCorporationMember2021-01-050001124140us-gaap:EstimateOfFairValueFairValueDisclosureMemberexas:AllocatedToPreviousOwnershipInterestMemberexas:ThriveEarlierDetectionCorporationMember2021-01-050001124140exas:AllocatedToCompensationMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberexas:ThriveEarlierDetectionCorporationMember2021-01-050001124140exas:ThriveEarlierDetectionCorporationMemberexas:CompensationExpenseMember2021-01-050001124140us-gaap:EmployeeStockOptionMemberexas:ThriveEarlierDetectionCorporationMember2021-01-052021-01-050001124140srt:MinimumMemberus-gaap:EmployeeStockOptionMemberexas:ThriveEarlierDetectionCorporationMember2021-01-052021-01-050001124140us-gaap:EmployeeStockOptionMembersrt:MaximumMemberexas:ThriveEarlierDetectionCorporationMember2021-01-052021-01-050001124140exas:ThriveEarlierDetectionCorporationMember2021-01-050001124140us-gaap:InvestmentIncomeMemberexas:ThriveEarlierDetectionCorporationMember2021-01-012021-03-3100011241402021-01-062021-09-300001124140exas:ThriveEarlierDetectionCorporationMember2021-09-300001124140exas:ThriveEarlierDetectionCorporationMember2021-01-062021-09-300001124140exas:ThriveEarlierDetectionCorporationMember2020-07-012020-09-300001124140exas:ThriveEarlierDetectionCorporationMember2020-01-012020-09-300001124140exas:EmployeesWithQualifyingTerminationEventsMemberexas:ThriveEarlierDetectionCorporationMember2021-01-012021-03-310001124140exas:ThriveEarlierDetectionCorporationMember2021-01-012021-03-310001124140exas:ThriveEarlierDetectionCorporationMember2020-01-012020-09-300001124140exas:ParadigmViomicsMember2021-09-300001124140exas:ParadigmViomicsMember2020-03-030001124140exas:ParadigmViomicsMember2020-03-042021-03-030001124140exas:ParadigmViomicsMember2021-03-030001124140exas:ParadigmViomicsMemberus-gaap:DevelopedTechnologyRightsMember2020-03-032020-03-0300011241402020-03-032020-03-030001124140exas:PFSGenomicsMember2021-05-030001124140exas:PFSGenomicsMember2021-06-230001124140exas:PFSGenomicsMember2021-06-232021-06-230001124140exas:SalesMilestoneRangeOneMemberexas:TARDISTechnologyMember2021-01-110001124140exas:TARDISTechnologyMemberexas:SalesMilestoneRangeTwoMember2021-01-110001124140exas:SalesMilestoneRangeOneMemberexas:TARDISTechnologyMember2021-01-012021-01-310001124140exas:TARDISTechnologyMemberexas:SalesMilestoneRangeTwoMember2021-01-012021-01-310001124140country:US2021-07-012021-09-300001124140country:US2020-07-012020-09-300001124140country:US2021-01-012021-09-300001124140country:US2020-01-012020-09-300001124140us-gaap:NonUsMember2021-07-012021-09-300001124140us-gaap:NonUsMember2020-07-012020-09-300001124140us-gaap:NonUsMember2021-01-012021-09-300001124140us-gaap:NonUsMember2020-01-012020-09-30exas:segment
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
OR
 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 001-35092
EXACT SCIENCES CORPORATION
(Exact name of registrant as specified in its charter)
Delaware02-0478229
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification Number)
5505 Endeavor Lane, Madison WI
53719
(Address of principal executive offices)(Zip Code)
(608) 535-8815 (Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per shareEXASThe 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 filerAccelerated filer 
Non-accelerated filerSmaller 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 November 1, 2021, the registrant had 172,318,821 shares of common stock outstanding.



EXACT SCIENCES CORPORATION
INDEX
Page
Number

2

EXACT SCIENCES CORPORATION
Condensed Consolidated Balance Sheets
(Amounts in thousands, except share data - unaudited)
Part I — Financial Information
September 30, 2021December 31, 2020
ASSETS
Current Assets:
Cash and cash equivalents$273,779 $1,491,288 
Marketable securities944,688 348,699 
Accounts receivable, net249,572 233,185 
Inventory95,167 92,265 
Prepaid expenses and other current assets52,385 33,157 
Total current assets1,615,591 2,198,594 
Long-term Assets:
Property, plant and equipment, net524,200 451,986 
Operating lease right-of-use assets167,911 125,947 
Goodwill2,242,535 1,237,672 
Intangible assets, net2,044,958 847,123 
Other long-term assets, net59,241 63,770 
Total assets$6,654,436 $4,925,092 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable$41,717 $35,709 
Accrued liabilities304,714 233,604 
Operating lease liabilities, current portion19,220 11,483 
Debt, current portion1,319 1,319 
Convertible notes, net, current portion313,104 312,716 
Other current liabilities30,157 38,265 
Total current liabilities710,231 633,096 
Long-term Liabilities:
Convertible notes, net, less current portion1,865,647 1,861,685 
Long-term debt, less current portion21,438 22,342 
Other long-term liabilities436,580 51,342 
Operating lease liabilities, less current portion162,950 121,075 
Total liabilities3,196,846 2,689,540 
Commitments and contingencies (Note 14)
Stockholders’ Equity:
Preferred stock, $0.01 par value Authorized—5,000,000 shares issued and outstanding—no shares at September 30, 2021 and December 31, 2020
  
Common stock, $0.01 par value Authorized—400,000,000 shares issued and outstanding—172,242,798 and 159,423,410 shares at September 30, 2021 and December 31, 2020
1,723 1,595 
Additional paid-in capital5,876,644 4,279,327 
Accumulated other comprehensive income133 526 
Accumulated deficit(2,420,910)(2,045,896)
Total stockholders’ equity3,457,590 2,235,552 
Total liabilities and stockholders’ equity$6,654,436 $4,925,092 
The accompanying notes are an integral part of these condensed consolidated financial statements.
3

EXACT SCIENCES CORPORATION
Condensed Consolidated Statements of Operations
(Amounts in thousands, except per share data - unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Revenue$456,379 $408,363 $1,293,275 $1,025,052 
Operating expenses
Cost of sales (exclusive of amortization of acquired intangible assets)115,738 95,061 339,699 254,559 
Research and development75,356 31,471 297,158 107,653 
Sales and marketing196,617 136,481 577,585 423,092 
General and administrative186,541 115,589 621,897 336,265 
Amortization of acquired intangible assets23,940 23,430 70,954 70,199 
Intangible asset impairment charge20,210 209,666 20,210 209,666 
Total operating expenses618,402 611,698 1,927,503 1,401,434 
Other operating income   23,665 
Loss from operations(162,023)(203,335)(634,228)(352,717)
Other income (expense)
Investment income (expense), net(4,093)2,523 30,524 5,532 
Interest expense(4,680)(4,478)(13,948)(63,382)
Total other income (expense)(8,773)(1,955)16,576 (57,850)
Net loss before tax(170,796)(205,290)(617,652)(410,567)
Income tax benefit3,858 2,752 242,638 5,294 
Net loss$(166,938)$(202,538)$(375,014)$(405,273)
Net loss per share—basic and diluted$(0.97)$(1.35)$(2.19)$(2.71)
Weighted average common shares outstanding—basic and diluted171,978 150,155 170,978149,346
The accompanying notes are an integral part of these condensed consolidated financial statements.
4

EXACT SCIENCES CORPORATION
Condensed Consolidated Statements of Comprehensive Loss
(Amounts in thousands - unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Net loss$(166,938)$(202,538)$(375,014)$(405,273)
Other comprehensive income (loss), before tax:
Unrealized gain (loss) on available-for-sale investments66 (405)(563)1,159 
Foreign currency adjustment   25 
Comprehensive loss, before tax(166,872)(202,943)(375,577)(404,089)
Income tax expense related to items of other comprehensive loss  170  
Comprehensive loss, net of tax$(166,872)$(202,943)$(375,407)$(404,089)
The accompanying notes are an integral part of these condensed consolidated financial statements.
5

EXACT SCIENCES CORPORATION
Condensed Consolidated Statements of Stockholders’ Equity
(Amounts in thousands, except share data - unaudited)
Common StockAdditional
Paid-In
Capital
Accumulated Other
Comprehensive
Income (Loss)
Accumulated
Deficit
Total
Stockholders’
Equity
Number of
Shares
$0.01
Par Value
Balance, January 1, 2021159,423,410 $1,595 $4,279,327 $526 $(2,045,896)$2,235,552 
Conversion of convertible notes, net of tax344 — 26 — — 26 
Exercise of common stock options967,107 10 8,749 — — 8,759 
Issuance of common stock to fund the Company’s 2020 401(k) match162,606 2 22,932 — — 22,934 
Compensation expense related to issuance of stock options and restricted stock awards1,355,435 13 158,239 — — 158,252 
Issuance of common stock for business combination and asset acquisition 9,384,410 94 1,254,704 — — 1,254,798 
Net loss— — — — (31,164)(31,164)
Other comprehensive loss
— — — (162)— (162)
Balance, March 31, 2021171,293,312 $1,714 $5,723,977 $364 $(2,077,060)$3,648,995 
Conversion of convertible notes, net of tax197 — 14 — — 14 
Exercise of common stock options140,478 1 2,857 — — 2,858 
Compensation expense related to issuance of stock options and restricted stock awards121,575 2 56,283 — — 56,285 
Issuance of common stock for business combinations126,026 1 16,119 — — 16,120 
Purchase of employee stock purchase plan shares173,717 2 12,036 — — 12,038 
Net loss— — — — (176,912)(176,912)
Other comprehensive loss
— — — (297)— (297)
Balance, June 30, 2021171,855,305 $1,720 $5,811,286 $67 $(2,253,972)$3,559,101 
Conversion of convertible notes, net of tax39 — 3 — — 3 
Exercise of common stock options100,474 1 1,754 — — 1,755 
Compensation expense related to issuance of stock options and restricted stock awards286,980 2 63,601 — — 63,603 
Net loss— — — — (166,938)(166,938)
Other comprehensive income
— — — 66 — 66 
Balance, September 30, 2021172,242,798 $1,723 $5,876,644 $133 $(2,420,910)$3,457,590 
The accompanying notes are an integral part of these condensed consolidated financial statements.
6

EXACT SCIENCES CORPORATION
Condensed Consolidated Statements of Stockholders’ Equity
(Amounts in thousands, except share data - unaudited)
Common StockAdditional Paid-In CapitalAccumulated Other
Comprehensive
Income (Loss)
Accumulated
Deficit
Total
Stockholders’
Equity
Number of
Shares
$0.01
Par Value
Balance, January 1, 2020147,625,696 $1,477 $3,178,552 $(100)$(1,222,290)$1,957,639 
Exercise of common stock options160,286 2 4,298 — — 4,300 
Issuance of common stock to fund the Company’s 2019 401(k) match136,559 1 12,006 — — 12,007 
Compensation expense related to issuance of stock options and restricted stock awards1,141,376 11 29,549 — — 29,560 
Issuance of common stock for business combinations382,947 4 28,593 — — 28,597 
Net loss— — — — (134,643)(134,643)
Other comprehensive loss
— — — (1,617)— (1,617)
Balance, March 31, 2020149,446,864 $1,495 $3,252,998 $(1,717)$(1,356,933)$1,895,843 
Exercise of common stock options208,434 2 6,636 — — 6,638 
Compensation expense related to issuance of stock options and restricted stock awards157,579 2 40,037 — — 40,039 
Purchase of employee stock purchase plan shares167,921 2 9,797 — — 9,799 
Net loss— — — — (68,092)(68,092)
Other comprehensive income
— — — 3,206 — 3,206 
Balance, June 30, 2020149,980,798 $1,501 $3,309,468 $1,489 $(1,425,025)$1,887,433 
Exercise of common stock options140,145 1 4,469 — — 4,470 
Compensation expense related to issuance of stock options and restricted stock awards249,197 2 41,474 — — 41,476 
Issuance of common stock for business combinations3,346 1 249 — — 250 
Net loss— — — — (202,538)(202,538)
Other comprehensive loss
— — — (405)— (405)
Balance, September 30, 2020150,373,486 $1,505 $3,355,660 $1,084 $(1,627,563)$1,730,686 
The accompanying notes are an integral part of these condensed consolidated financial statements.
7

EXACT SCIENCES CORPORATION
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands - unaudited)
Nine Months Ended September 30,
20212020
Cash flows from operating activities:
Net loss$(375,014)$(405,273)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization64,267 53,345 
Loss on disposal of property, plant and equipment928 930 
Unrealized (gain) loss on equity investments1,937 (1,183)
Deferred tax benefit(248,716)(6,161)
Stock-based compensation197,180 111,075 
Post-combination expense for acceleration of unvested equity80,960  
Realized gain on preferred stock investment(30,500) 
Loss on settlement of convertible notes 50,819 
Amortization of deferred financing costs, convertible note debt discount and issuance costs, and other liabilities4,948 340 
Amortization of premium on short-term investments3,265 1,040 
Amortization of acquired intangible assets70,954 70,199 
Intangible asset impairment charge20,210 209,666 
Asset acquisition IPR&D expense85,337  
Remeasurement of contingent consideration10,986  
Non-cash lease expense18,347 11,041 
Changes in assets and liabilities:
Accounts receivable, net(14,038)(73,642)
Inventory, net(1,091)(18,472)
Operating lease liabilities(11,834)(6,135)
Accounts payable and accrued liabilities64,344 (7,608)
Other assets and liabilities(20,134)35,097 
Net cash provided by (used in) operating activities(77,664)25,078 
Cash flows from investing activities:
Purchases of marketable securities(1,021,557)(890,012)
Maturities and sales of marketable securities424,830 559,907 
Purchases of property, plant and equipment(76,374)(48,371)
Business combination, net of cash acquired(415,549)(6,658)
Asset acquisition(58,073) 
Investments in privately held companies(13,555)(10,610)
Other investing activities(244)345 
Net cash used in investing activities(1,160,522)(395,399)
Cash flows from financing activities:
Proceeds from issuance of convertible notes, net 1,125,547 
Proceeds from exercise of common stock options13,372 15,408 
Proceeds in connection with the Company’s employee stock purchase plan12,038 9,799 
Payments on settlement of convertible notes (150,054)
Other financing activities(4,742)(938)
Net cash provided by financing activities20,668 999,762 
Net increase (decrease) in cash, cash equivalents and restricted cash(1,217,518)629,441 
Cash, cash equivalents and restricted cash, beginning of period1,491,594 177,528 
Cash, cash equivalents and restricted cash, end of period$274,076 $806,969 
8

EXACT SCIENCES CORPORATION
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands - unaudited)
Nine Months Ended September 30,
20212020
Supplemental disclosure of non-cash investing and financing activities
Property, plant and equipment acquired but not paid$21,110 $7,209 
Unrealized gain (loss) on available-for-sale investments, before tax$(563)$1,159 
Issuance of 162,606 and 136,559 shares of common stock to fund the Company’s 401(k) matching contribution for 2020 and 2019, respectively
$22,934 $12,007 
Issuance of 9,510,436 and 382,947 shares of common stock for business combinations and asset acquisition for 2021 and 2020, respectively
$1,270,918 $28,847 
Business combination contingent consideration liability$350,348 $ 
Supplemental disclosure of cash flow information:
Interest paid$10,685 $9,239 
The accompanying notes are an integral part of these condensed consolidated financial statements.
9

EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)

(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Business
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 brands 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.
Basis of Presentation and Principles of Consolidation
The accompanying condensed consolidated financial statements, which include the accounts of Exact Sciences Corporation 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, 2020 included in the Company’s Annual Report on Form 10-K (the “2020 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 in the United States of America (“GAAP”) 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, 2020 has been derived from audited financial statements, but does not contain all of the footnote disclosures from the 2020 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 2020 Form 10-K.
Use of Estimates
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 and the 2020 Form 10-K.
The spread of the coronavirus (“COVID-19”) has affected many segments of the global economy, including the cancer screening and diagnostics industry. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of September 30, 2021 and through the date of the filing of this Quarterly Report on Form 10-Q. The accounting matters assessed included, but were not limited to, the Company’s allowance for doubtful accounts and credit losses, equity investments, software, and the carrying value of the goodwill and other long-lived assets. The Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in additional material impacts to the Company’s consolidated financial statements in future reporting periods.
The pandemic and related precautionary measures began to materially disrupt the Company's operations in March 2020 and may continue to disrupt the business for an unknown period of time. As a result, the pandemic impacted the Company's revenues and operating results for the three and nine months ended September 30, 2021.
The ultimate impact of COVID-19 depends on factors beyond the Company’s knowledge or control, including the duration and severity of the outbreak, as well as third-party actions taken to contain its spread and mitigate its public health effects. As a result, the Company is unable to estimate the extent to which COVID-19 will negatively impact its financial results or liquidity.
10

EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Significant Accounting Policies
During the nine months ended September 30, 2021, there were no changes to the Company’s significant accounting policies as described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, except as described in the Recently Adopted Accounting Pronouncements section below.
Reclassifications
Certain prior year amounts have been reclassified to conform to the current year presentation in the condensed consolidated financial statements and accompanying notes to the condensed consolidated financial statements.
Recent Accounting Pronouncements
Recently Adopted Accounting Pronouncements
In August 2020, The Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2020-06, Debt – Debt with Conversion and Other Options (subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40). This update simplifies the accounting for convertible debt instruments by removing the beneficial conversion and cash conversion separation models for convertible instruments. Under the update, the embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives or that do not result in substantial premiums accounted for as paid-in capital. The update also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, ASU 2020-06 requires the application of the if-converted method for calculating diluted earnings per share and the treasury stock method will no longer be available. This standard may be adopted through either a modified retrospective method of transition or a full retrospective method of transition. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020.
The Company adopted the standard on January 1, 2021 through application of the full retrospective method of transition. This method of adoption was applied to enhance comparability between the periods presented in the Company’s financial statements. The Company applied the standard to convertible notes outstanding as of the date of the first offering of the Company’s outstanding convertible notes as discussed in Note 9.
The Company’s convertible debt instruments will be accounted for as a single liability measured at its amortized cost. The notes are no longer bifurcated between debt and equity, rather accounted for entirely as debt at face value net of any discount or premium and issuance costs. Interest expense is comprised of (1) cash interest payments, (2) amortization of any debt discounts or premiums based on the original offering, and (3) amortization of any debt issuance costs. Gain or loss on extinguishment of convertible notes is calculated as the difference between the (i) fair value of the consideration transferred and (ii) the sum of the carrying value of the debt at the time of repurchase.
11

EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)
As of January 1, 2019, the cumulative effect of adoption resulted in a decrease in additional-paid-in-capital of $260.2 million, a decrease in accumulated deficit of $26.6 million, and an increase to net deferred tax assets of $55.7 million offset by a corresponding increase of $55.7 million in the valuation allowance. As of January 1, 2020, the cumulative effect of adoption resulted in a decrease in additional-paid-in-capital of $227.8 million, an increase in accumulated deficit of $102.6 million, and an increase to the net deferred tax assets of $83.2 million offset by a corresponding increase of $74.7 million in the valuation allowance resulting in a net decrease of $8.5 million in recorded deferred tax liabilities. As of December 31, 2020, the cumulative effect of adoption resulted in an increase in the net carrying amount of convertible notes, net, current portion of $57.3 million and convertible notes, net, less current portion of $540.9 million, a decrease in additional-paid-in-capital of $510.3 million, an increase in accumulated deficit of $77.7 million, and an increase to net deferred tax assets of $146.0 million offset by a corresponding increase of $135.8 million in the valuation allowance resulting in a net decrease of $10.2 million in recorded deferred tax liabilities. For the three months ended September 30, 2020, interest expense in the condensed consolidated statement of operations decreased by $19.1 million as a result of a decrease in amortization of debt discounts, premiums, and issuance costs, income tax benefit decreased by $1.8 million and net loss per share, basic and diluted, decreased by $0.12 per share. For the nine months ended September 30, 2020, interest expense in the condensed consolidated statement of operations decreased by $8.3 million as a result of a decrease in amortization of debt discounts, premiums, and issuance costs of $51.2 million, which was offset by an increase in loss on extinguishment of $42.9 million in connection with the extinguishment of $100.0 million face value of 2025 Notes. Income tax benefit decreased by $1.8 million and net loss per share, basic and diluted, increased by $0.04 per share.
Net Loss Per Share
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:
September 30,
(In thousands)20212020
Shares issuable in connection with acquisitions (1)45 157 
Shares issuable upon exercise of stock options2,380 2,429 
Shares issuable upon the release of restricted stock awards4,306 4,035 
Shares issuable upon the release of performance share units863 619 
Shares issuable upon conversion of convertible notes20,309 20,309 
27,903 27,549 
______________
(1)During the third quarter of 2021, shares were issued related to holdback amounts on the previously closed acquisition of Viomics, Inc. (“Viomics”). The remaining issuable shares relate to the previously closed acquisition of Paradigm Diagnostics, Inc. (“Paradigm”).

(2) REVENUE
The Company’s revenue is primarily generated by its laboratory testing services utilizing its Cologuard, Oncotype DX, and COVID-19 tests. The services are completed upon release of a patient’s test result to the ordering healthcare provider.
12

EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Disaggregation of Revenue
The following table presents the Company’s revenues disaggregated by revenue source:
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2021202020212020
Screening
Medicare Parts B & C$116,088 $98,847 $329,034 $256,589 
Commercial151,245 106,002 419,268 280,451 
Other13,045 9,774 36,341 28,367 
Total Screening280,378 214,623 784,643 565,407 
Precision Oncology
Medicare Parts B & C$51,607 $33,945 $142,428 $114,973 
Commercial42,844 37,402 145,821 137,212 
International27,229 16,243 80,133 56,227 
Other23,732 3,989 44,246 14,493 
Total Precision Oncology145,412 91,579 412,628 322,905 
COVID-19 Testing$30,589 $102,161 $96,004 $136,740 
Total$456,379 $408,363 $1,293,275 $1,025,052 
Screening revenue primarily includes laboratory service revenue from the Cologuard test while Precision Oncology revenue primarily includes laboratory service revenue from global Oncotype DX products.
The downward adjustment to revenue from changes in transaction price was $0.2 million for the three months ended September 30, 2021 and revenue recognized from changes in transaction price was $0.5 million for the three months ended September 30, 2020. The downward adjustment to revenue from changes in transaction price was $13.2 million for the nine months ended September 30, 2021 and revenue recognized from changes in transaction price was $9.1 million for the nine months ended September 30, 2020. 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.
Deferred revenue balances are reported in other current liabilities in the Company’s condensed consolidated balance sheets and were $18.7 million and $25.0 million as of September 30, 2021 and December 31, 2020, respectively. As of September 30, 2021, $17.8 million of the Company’s deferred revenue balance is a result of the billing terms pursuant to the existing COVID-19 laboratory service agreements (“LSAs”) with customers.
Revenue recognized for the three months ended September 30, 2021 and 2020, which was included in the deferred revenue balance at the beginning of each period, was $0.2 million and $5,000, respectively. Of the $0.2 million of revenue recognized for the three months ended September 30, 2021, which was included in the deferred revenue balance at the beginning of the period, $0.1 million related to COVID-19 testing. Revenue recognized for the nine months ended September 30, 2021 and 2020, which was included in the deferred revenue balance at the beginning of each period, was $24.6 million and $0.2 million, respectively. Of the $24.6 million of revenue recognized for the nine months ended September 30, 2021, which was included in the deferred revenue balance at the beginning of the period, $24.3 million related to COVID-19 testing.

13

EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(3) MARKETABLE SECURITIES
The following table sets forth the Company’s cash, cash equivalents, restricted cash, and marketable securities at September 30, 2021 and December 31, 2020:
(In thousands)September 30, 2021December 31, 2020
Cash, cash equivalents, and restricted cash
Cash and money market$273,779 $901,294 
Cash equivalents 589,994 
Restricted cash297 306 
Total cash, cash equivalents, and restricted cash274,076 1,491,594 
Marketable securities
Available-for-sale debt securities941,620 347,178 
Equity securities3,068 1,521 
Total marketable securities944,688 348,699 
Total cash and cash equivalents, restricted cash and marketable securities$1,218,764 $1,840,293 
Available-for-sale debt securities at September 30, 2021 consisted of the following:
(In thousands)Amortized CostGains in Accumulated
Other Comprehensive
Income (Loss) (1)
Losses in Accumulated
Other Comprehensive
Income (Loss) (1)
Estimated Fair
Value
Marketable securities
Corporate bonds$368,662 $213 $(43)$368,832 
U.S. government agency securities276,146 19 (