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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, 2024
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 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 November 4, 2024, the registrant had 185,076,293 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, 2024December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents$588,830 $605,378 
Marketable securities432,301 172,266 
Accounts receivable, net264,819 203,623 
Inventory136,987 127,475 
Prepaid expenses and other current assets110,180 85,627 
Total current assets1,533,117 1,194,369 
Long-term Assets:
Property, plant and equipment, net690,332 698,354 
Operating lease right-of-use assets122,452 143,708 
Goodwill2,367,450 2,367,120 
Intangible assets, net1,864,399 1,890,396 
Other long-term assets, net170,821 177,387 
Total assets$6,748,571 $6,471,334 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$97,653 $78,816 
Accrued liabilities313,997 341,683 
Operating lease liabilities, current portion27,170 29,379 
Convertible notes, net, current portion
249,038 — 
Debt, current portion— 50,000 
Other current liabilities35,804 14,823 
Total current liabilities723,662 514,701 
Long-term liabilities:
Convertible notes, net, less current portion
2,319,490 2,314,276 
Other long-term liabilities332,213 335,982 
Operating lease liabilities, less current portion162,695 161,070 
Total liabilities3,538,060 3,326,029 
Commitments and contingencies (Note 13)
Stockholders’ equity:
Preferred stock, $0.01 par value Authorized—5,000,000; shares issued and outstanding—no shares at September 30, 2024 and December 31, 2023
— — 
Common stock, $0.01 par value Authorized—400,000,000; shares issued and outstanding—185,054,760 and 181,364,180 shares at September 30, 2024 and December 31, 2023
1,852 1,815 
Additional paid-in capital6,837,476 6,611,237 
Accumulated other comprehensive income
4,630 1,428 
Accumulated deficit(3,633,447)(3,469,175)
Total stockholders’ equity3,210,511 3,145,305 
Total liabilities and stockholders’ equity$6,748,571 $6,471,334 
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,
2024202320242023
Revenue$708,655 $628,338 $2,045,443 $1,852,881 
Operating expenses
Cost of sales (exclusive of amortization of acquired intangible assets)196,070 168,526 556,019 482,383 
Research and development100,101 111,446 331,593 310,960 
Sales and marketing194,653 173,159 572,288 536,613 
General and administrative217,201 217,393 662,174 672,653 
Amortization of acquired intangible assets24,435 22,992 71,057 68,849 
Impairment of long-lived assets18,698 — 31,296 621 
Total operating expenses751,158 693,516 2,224,427 2,072,079 
Other operating income3,100 72,027 6,632 72,027 
Income (loss) from operations(39,403)6,849 (172,352)(147,171)
Other income (expense)
Investment income, net
11,582 2,065 29,596 7,383 
Interest expense
(9,607)(7,871)(17,439)(11,582)
Total other income (expense)1,975 (5,806)12,157 (4,199)
Net income (loss) before tax(37,428)1,043 (160,195)(151,370)
Income tax expense
(808)(249)(4,077)(3,013)
Net income (loss)$(38,236)$794 $(164,272)$(154,383)
Net income (loss) per share—basic$(0.21)$0.00 $(0.89)$(0.86)
Net income (loss) per share—diluted $(0.21)$0.00 $(0.89)$(0.86)
Weighted average common shares outstanding—basic184,795 180,649 183,823 179,817
Weighted average common shares outstanding—diluted184,795 184,075 183,823 179,817 
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,
2024202320242023
Net income (loss)
$(38,236)$794 $(164,272)$(154,383)
Other comprehensive income (loss), net of tax:
Unrealized gain on available-for-sale investments
3,700 423 2,775 4,327 
Foreign currency adjustment
1,873 (1,235)427 (626)
Comprehensive loss$(32,663)$(18)$(161,070)$(150,682)
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 DeficitTotal Stockholders’ Equity
Number of Shares
$0.01
Par Value
Balance, January 1, 2024181,364,180 $1,815 $6,611,237 $1,428 $(3,469,175)$3,145,305 
Exercise of common stock options, net of shares withheld for taxes71,537 1 (1,409)— — (1,408)
Issuance of common stock upon settlement of restricted stock awards, net of shares withheld for taxes1,792,087 17 (61)— — (44)
Issuance of common stock to fund the Company’s 2023 401(k) match
617,384 6 40,544 — — 40,550 
Stock-based compensation expense— — 60,370 — — 60,370 
Net loss— — — — (110,228)(110,228)
Other comprehensive loss
— — — (1,927)— (1,927)
Balance, March 31, 2024183,845,188 $1,839 $6,710,681 $(499)$(3,579,403)$3,132,618 
Exercise of common stock options, net of shares withheld for taxes8,184 1 42 — — 43 
Issuance of common stock upon settlement of restricted stock awards, net of shares withheld for taxes210,590 2 (6)— — (4)
Stock-based compensation expense— — 56,555 — — 56,555 
Purchase of employee stock purchase plan shares604,226 6 19,396 — — 19,402 
Net loss— — — — (15,808)(15,808)
Other comprehensive loss
— — — (444)— (444)
Balance, June 30, 2024184,668,188 $1,848 $6,786,668 $(943)$(3,595,211)$3,192,362 
Exercise of common stock options, net of shares withheld for taxes
79,871 1 2,131 — — 2,132 
Issuance of common stock upon settlement of restricted stock awards, net of shares withheld for taxes
306,701 3 (80)— — (77)
Stock-based compensation expense— — 48,757 — — 48,757 
Net loss
— — — — (38,236)(38,236)
Other comprehensive income
— — — 5,573 — 5,573 
Balance, September 30, 2024185,054,760 $1,852 6,837,476 $4,630 (3,633,447)$3,210,511 

6
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 DeficitTotal Stockholders’ Equity
Number of Shares
$0.01
Par Value
Balance, January 1, 2023177,925,631 $1,780 $6,311,644 $(5,236)$(3,265,026)$3,043,162 
Exercise of common stock options, net of shares withheld for taxes88,228 1 963 — — 964 
Issuance of common stock upon settlement of restricted stock awards, net of shares withheld for taxes1,299,071 13 (13)— — — 
Issuance of common stock to fund the Company’s 2022 401(k) match517,215 5 35,072 — — 35,077 
Stock-based compensation expense— — 49,139 — — 49,139 
Net loss— — — — (74,151)(74,151)
Other comprehensive income
— — — 3,517 — 3,517 
Balance, March 31, 2023179,830,145 $1,799 $6,396,805 $(1,719)$(3,339,177)$3,057,708 
Exercise of common stock options, net of shares withheld for taxes
36,728 1 851 — — 852 
Issuance of common stock upon settlement of restricted stock awards, net of shares withheld for taxes134,002 1 (1)— — — 
Issuance of common stock to fund the Company’s 2022 401(k) match335 — 23 — — 23 
Stock-based compensation expense— — 61,725 — — 61,725 
Purchase of employee stock purchase plan shares544,453 5 16,339 — — 16,344 
Net loss— — — — (81,026)(81,026)
Other comprehensive income— — — 996 — 996 
Balance, June 30, 2023180,545,663 $1,806 $6,475,742 $(723)$(3,420,203)$3,056,622 
Exercise of common stock options, net of shares withheld for taxes
51,262 1 1,076 — — 1,077 
Issuance of common stock upon settlement of restricted stock awards, net of shares withheld for taxes
217,482 2 (2)— — — 
Stock-based compensation expense— — 61,871 — — 61,871 
Issuance of common stock for business combinations— — 1,675 — — 1,675 
Net income— — — — 794 794 
Other comprehensive loss
— — — (812)— (812)
Balance, September 30, 2023180,814,407 $1,809 $6,540,362 $(1,535)$(3,419,409)$3,121,227 
The accompanying notes are an integral part of these condensed consolidated financial statements.
7
EXACT SCIENCES CORPORATION
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands - unaudited)
Nine Months Ended September 30,
20242023
Cash flows from operating activities:
Net loss$(164,272)$(154,383)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation90,655 83,587 
Loss on non-marketable and marketable equity securities
1,772 10,264 
Deferred tax expense
1,827 (279)
Stock-based compensation165,682 172,735 
Gain on settlements of convertible notes, net(10,254)(10,324)
Amortization of acquired intangible assets71,057 68,849 
Impairment of long-lived assets31,296 621 
Remeasurement of contingent consideration from sale of asset
(6,632)(68,900)
Remeasurement of contingent consideration liabilities(2,326)(13,051)
Non-cash lease expense20,645 20,918 
Other(1,437)3,530 
Changes in assets and liabilities:
Accounts receivable, net(61,410)(40,306)
Inventory, net(9,516)(13,074)
Operating lease liabilities(19,345)(19,741)
Accounts payable and accrued liabilities38,258 51,084 
Other assets6,358 (3,686)
Other liabilities11,115 (1,274)
Net cash provided by operating activities
163,473 86,570 
Cash flows from investing activities:
Purchases of marketable securities(405,385)(75,096)
Maturities and sales of marketable securities150,916 328,054 
Purchases of property, plant and equipment(99,673)(89,268)
Business combination, net of cash acquired— (50,000)
Asset acquisition, net of cash acquired
(45,000)— 
Purchases of non-marketable securities
(916)(6,290)
Sales of investments in non-marketable securities
— 9,296 
Other investing activities(225)(250)
Net cash provided by (used in) investing activities
(400,283)116,446 
Cash flows from financing activities:
Proceeds from exercise of common stock options, net of cash paid for taxes767 2,893 
Proceeds in connection with the Company’s employee stock purchase plan19,402 16,344 
Proceeds from issuance of convertible notes266,750 137,976 
Payments on accounts receivable securitization facility(50,000)— 
Other financing activities(15,544)(7,484)
Net cash provided by financing activities
221,375 149,729 
Effects of exchange rate changes on cash and cash equivalents427 (626)
Net increase (decrease) in cash, cash equivalents and restricted cash(15,008)352,119 
Cash, cash equivalents and restricted cash, beginning of period609,675 242,790 
Cash, cash equivalents and restricted cash, end of period$594,667 $594,909 


8
EXACT SCIENCES CORPORATION
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands - unaudited)
Nine Months Ended September 30,
20242023
Supplemental disclosure of non-cash investing and financing activities
Property, plant and equipment acquired but not paid$11,904 $14,422 
Supplemental disclosure of cash flow information:
Interest paid$21,109 $18,176 
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents$588,830 $594,612 
Restricted cash — included in other long-term assets, net
5,837 297 
Total cash, cash equivalents and restricted cash$594,667 $594,909 
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. A leading provider of cancer screening and diagnostic tests, Exact Sciences gives patients and health care professionals the clarity needed to take life-changing action earlier. Building on the success of the Cologuard® and Oncotype DX® tests, Exact Sciences is investing in its pipeline to develop innovative solutions for use before, during, and after a cancer diagnosis.
Basis of Presentation and Principles of Consolidation
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, 2023 included in the Company’s Annual Report on Form 10-K (the “2023 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, 2023 has been derived from audited financial statements, but does not contain all of the footnote disclosures from the 2023 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 2023 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, contingent consideration, and accounting for income taxes. 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 2023 Form 10-K.
Significant Accounting Policies
During the nine months ended September 30, 2024, there were no changes to the Company’s significant accounting policies as described in the Company’s 2023 Form 10-K, except as described in the Recently Adopted Accounting Pronouncements sections below.
Recent Accounting Pronouncements
Recently Adopted Accounting Pronouncements
In March 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2024-02: Codification Improvement – Amendments to Remove References to the Concepts Statements. This update amends the Accounting Standards Codification (“ASC”) to remove references to various FASB Concepts Statements. The Company early adopted and prospectively applied the amendments in this update during the first quarter of fiscal year 2024. There was no significant impact to the Company’s condensed consolidated financial statements.
10
EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Recently Issued Accounting Pronouncements Not Yet Adopted
In October 2023, the FASB issued ASU No. 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. This update modifies the disclosure or presentation requirements of a variety of topics in the ASC to conform with certain SEC amendments in Release No. 33-10532, Disclosure Update and Simplification. The amendments in this update should be applied prospectively, and the effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or S-K becomes effective. However, if the SEC has not removed the related disclosure from its regulations by June 30, 2027, the amendments will be removed from the Codification and not become effective. Early adoption is prohibited. The Company is currently evaluating the potential impact of this guidance on its condensed consolidated financial statements.
In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This update improves reportable segment disclosure requirements, primarily through enhanced disclosures of significant segment expenses. The amendments in this update should be applied retrospectively to all prior periods presented in the consolidated financial statements and are effective for fiscal years beginning after December 31, 2023 and interim periods within fiscal years beginning after December 31, 2024. Early adoption is permitted. The Company is currently evaluating the potential impact of this guidance on its condensed consolidated financial statements.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures. This update improves income tax disclosure requirements, primarily through enhanced transparency and decision usefulness of disclosures. The amendments in this update should be applied prospectively with the option to apply retrospectively and are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the potential impact of this guidance on its condensed consolidated financial statements.
Net Income (Loss) Per Share
Basic net income (loss) per common share (“EPS”) was determined by dividing net income (loss) applicable to common stockholders by the weighted average common shares outstanding during the period. Diluted EPS is based on shares that are outstanding per the calculation of basic EPS and on potentially dilutive shares.
The following is a reconciliation of the numerator and denominator used to calculate basic EPS and diluted EPS for the periods indicated:
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2024202320242023
Net income (loss) available to common shareholders
$(38,236)$794 $(164,272)$(154,383)
Weighted average common shares outstanding - basic
184,795 180,649 183,823 179,817 
Effect of dilutive shares:
Restricted stock awards
— 2,153 — — 
Stock options
— 646 — — 
Employee stock purchase plan
— 589 — — 
Performance share units
— 38 — — 
Dilutive potential common shares
— 3,426 — — 
Weighted average common shares outstanding - diluted
184,795 184,075 183,823 179,817 
Earnings per common share from net earnings - basic
$(0.21)$0.00 $(0.89)$(0.86)
Earnings per common share from net earnings - diluted
$(0.21)$0.00 $(0.89)$(0.86)
11
EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)
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:
Three Months Ended September 30,
Nine Months Ended September 30,
(In thousands)2024202320242023
Shares issuable upon conversion of convertible notes26,526 23,231 26,526 23,231 
Shares issuable upon the release of restricted stock awards7,487 — 7,487 6,423 
Shares issuable upon the release of performance share units2,037 — 2,037 1,584 
Shares issuable upon exercise of stock options1,028 — 1,028 1,305 
37,078 23,231 37,078 32,543 

(2) REVENUE
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:
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2024202320242023
Screening
Medicare Parts B & C$201,423 $173,624 $570,550 $521,370 
Commercial289,637 253,401 827,509 732,182 
Other53,841 44,988 153,246 124,443 
Total Screening544,901 472,013 1,551,305 1,377,995 
Precision Oncology
Medicare Parts B & C$47,080 $46,383 $142,597 $141,352 
Commercial47,685 44,430 143,572 135,574 
International49,433 38,599 140,688 111,453 
Other19,556 26,913 67,281 80,552 
Total Precision Oncology163,754 156,325 494,138 468,931 
COVID-19 Testing$— $— $— $5,955 
Total$708,655 $628,338 $2,045,443 $1,852,881 
Screening revenue primarily includes laboratory service revenue from Cologuard and Prevention Genetics, LLC (“PreventionGenetics”) tests while Precision Oncology revenue primarily includes laboratory service revenue from global Oncotype DX and therapy selection tests.
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. Adjustments to revenue recognized during the period relating to prior period estimates were less than 1% of revenue recorded in the Company’s condensed consolidated statement of operations for the three and nine months ended September 30, 2024. Adjustments to revenue recognized during the period relating to prior period estimates were less than 2% of revenue recorded in the Company’s condensed consolidated statement of operations for the three and nine months ended September 30, 2023.
The Company’s deferred revenue, which is reported in other current liabilities in the Company’s condensed consolidated balance sheets, was not significant as of September 30, 2024 and December 31, 2023.
Revenue recognized for the three and nine months ended September 30, 2024 and 2023 that was included in the deferred revenue balance at the beginning of the period was not significant.
12
EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)

(3) MARKETABLE SECURITIES
The following table sets forth the Company’s cash, cash equivalents, and marketable securities at September 30, 2024 and December 31, 2023:
(In thousands)September 30, 2024December 31, 2023
Cash and cash equivalents
Cash and money market$582,741 $530,100 
Cash equivalents6,089 75,278 
Total cash and cash equivalents588,830 605,378 
Marketable securities
Available-for-sale debt securities$427,072 $168,425 
Equity securities5,229 3,841 
Total marketable securities432,301 172,266 
Total cash, cash equivalents and marketable securities$1,021,131 $777,644 
Available-for-sale debt securities, including the classification within the condensed consolidated balance sheet at September 30, 2024, consisted of the following:
(In thousands)Amortized Cost
Gains in Accumulated Other Comprehensive Income (1)
Losses in Accumulated Other Comprehensive Income (1)
Estimated Fair Value
Cash equivalents
U.S. government agency securities$6,089 $— $— $6,089 
Total cash equivalents6,089 — — 6,089 
Marketable securities
Corporate bonds$212,590 $2,039 $(14)$214,615 
U.S. government agency securities126,676 436 (19)127,093 
Asset backed securities84,977 441 (54)85,364 
Total marketable securities424,243 2,916 (87)427,072 
Total available-for-sale securities$430,332 $2,916 $(87)$433,161 
______________
(1)There was no tax impact from the gains and losses in accumulated other comprehensive income (“AOCI”).
13
EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Available-for-sale debt securities, including the classification within the condensed consolidated balance sheet at December 31, 2023, consisted of the following:
(In thousands)Amortized Cost
Gains in Accumulated Other Comprehensive Income (1)
Losses in Accumulated Other Comprehensive Income (1)
Estimated Fair Value
Cash equivalents
Commercial paper$72,243 $— $— $72,243 
U.S. government agency securities3,035 — — 3,035 
Total cash equivalents75,278 — — 75,278 
Marketable securities
U.S. government agency securities$56,594 $166 $(44)$56,716 
Corporate bonds55,712 175 (59)55,828 
Asset backed securities35,081 65 (249)34,897 
Commercial paper
20,984 — — 20,984 
Total marketable securities168,371 406 (352)168,425 
Total available-for-sale securities$243,649 $406 $(352)$243,703 
______________
(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 September 30, 2024:
Due one year or lessDue after one year through five years
(In thousands)CostFair ValueCostFair Value
Cash equivalents
U.S. government agency securities$6,089 $6,089 $— $— 
Total cash equivalents6,089 6,089 — — 
Marketable securities
U.S. government agency securities$89,800 $90,048 $36,876 $37,045 
Corporate bonds51,706 51,890 160,884 162,725 
Asset backed securities11,388 11,448 73,589 73,916 
Total marketable securities152,894 153,386 271,349 273,686 
Total available-for-sale securities$158,983 $159,475 $271,349 $273,686 
The following table summarizes the gross unrealized losses and fair values of available-for-sale debt securities in an unrealized loss position as of September 30, 2024 aggregated by investment category and length of time those individual securities have been in a continuous unrealized loss position:
Less than one yearOne year or greaterTotal
(In thousands)Fair ValueGross Unrealized LossFair ValueGross Unrealized LossFair ValueGross Unrealized Loss
Marketable securities
Corporate bonds$9,501 $(13)$3,290 $(1)$12,791 $(14)
U.S. government agency securities8,551 (16)3,963 (3)12,514 (19)
Asset backed securities3,399 (3)3,986 (51)7,385 (54)
Total available-for-sale securities$21,451 $(32)$11,239 $(55)$32,690 $(87)
14
EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)
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 September 30, 2024 and December 31, 2023 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, net in the Company’s condensed consolidated statements of operations. The gains and losses recorded were not material for the three and nine months ended September 30, 2024 and 2023.

(4) INVENTORY
Inventory consisted of the following:
(In thousands)September 30, 2024December 31, 2023
Raw materials$54,714 $58,593 
Semi-finished and finished goods82,273 68,882 
Total inventory$136,987 $127,475 
(5) PROPERTY, PLANT AND EQUIPMENT
The carrying value and estimated useful lives of property, plant and equipment are as follows:
(In thousands)Estimated Useful LifeSeptember 30, 2024December 31, 2023
Property, plant and equipment
Landn/a$4,716 $4,716 
Leasehold and building improvements(1)227,600 214,562 
Land improvements15 years6,747 6,729 
Buildings
30 - 40 years
290,777 290,777 
Computer equipment and computer software3 years199,715 168,131 
Machinery and equipment
3 - 10 years
324,129 290,294 
Furniture and fixtures
3 - 10 years
36,976 35,756 
Assets under constructionn/a80,063 104,592 
Property, plant and equipment, at cost1,170,723 1,115,557 
Accumulated depreciation(480,391)(417,203)
Property, plant and equipment, net$690,332 $698,354 
______________
(1)Lesser of remaining lease term, building life, or estimated useful life.
Depreciation expense for the three months ended September 30, 2024 and 2023 was $30.3 million and $29.3 million, respectively. Depreciation expense for the nine months ended September 30, 2024 and 2023 was $90.7 million and $83.6 million, respectively.
At September 30, 2024, the Company had $80.1 million of assets under construction, which consisted of $52.3 million in machinery and equipment, $12.7 million in capitalized costs related to software projects, $10.0 million in leasehold and building improvements, $5.1 million related to buildings, and minimal furniture and fixtures. Depreciation will begin on these assets once they are placed into service upon completion.

15
EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(6) INTANGIBLE ASSETS AND GOODWILL
Intangible Assets
The following table summarizes the net-book-value and estimated remaining life of the Company’s intangible assets as of September 30, 2024:
(In thousands)Weighted Average Remaining Life (Years)CostAccumulated Amortization
Net Balance at September 30, 2024
Finite-lived intangible assets
Trade name11.0$104,000 $(33,340)$70,660 
Customer relationships6.34,000 (1,222)2,778 
Patents and licenses9.756,542 (11,811)44,731 
Acquired developed technology (1)6.6887,708 (391,478)496,230 
Total finite-lived intangible assets1,052,250 (437,851)614,399 
In-process research and developmentn/a1,250,000 — 1,250,000 
Total intangible assets$2,302,250 $(437,851)$1,864,399 
The following table summarizes the net-book-value and estimated remaining life of the Company’s intangible assets as of December 31, 2023:
(In thousands)Weighted Average Remaining Life (Years)CostAccumulated Amortization
Net Balance at December 31, 2023
Finite-lived intangible assets
Trade name11.6$104,000 $(27,903)$76,097 
Customer relationships7.04,000 (889)3,111 
Patents and licenses4.511,542 (9,600)1,942 
Acquired developed technology (1)7.3887,789 (328,543)559,246 
Total finite-lived intangible assets1,007,331 (366,935)640,396 
In-process research and developmentn/a1,250,000 — 1,250,000 
Total intangible assets$2,257,331 $(366,935)$1,890,396 
______________
(1)The gross carrying amount includes an insignificant foreign currency translation adjustment related to the intangible asset acquired as a result of the acquisition of OmicEra Diagnostics GmbH (“OmicEra”).
As of September 30, 2024, 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:
(In thousands)
2024 (remaining three months)$24,100 
202596,361 
202695,300 
202795,300 
202895,300 
Thereafter208,038 
$614,399 
16
EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)
The Company’s acquired intangible assets are being amortized on a straight-line basis over their estimated useful lives.
There were no impairment losses recorded on finite-lived intangible assets during the three and nine months ended September 30, 2024 and 2023. Updates to key assumptions used to calculate the fair value of the Company’s in-process research and development asset (“IPR&D”) could change the Company’s estimate that it will recover the carrying amount of the IPR&D asset in the near term.
Goodwill
The change in the carrying amount of goodwill for the periods ended September 30, 2024 and December 31, 2023 is as follows:
(In thousands)
Balance, January 1, 2023
$2,346,040 
Resolution Bioscience acquisition
20,692 
Effects of changes in foreign currency exchange rates (1)388 
Balance, December 31, 2023
2,367,120 
Resolution Bioscience acquisition adjustments225 
Effects of changes in foreign currency exchange rates (1)105 
Balance September 30, 2024
$2,367,450 
______________
(1)Represents the impact of foreign currency translation related to the goodwill acquired as a result of the acquisition of OmicEra.
There were no impairment losses for the three and nine months ended September 30, 2024 and 2023.

(7) FAIR VALUE MEASUREMENTS
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.
17
EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)
The following table presents the Company’s fair value measurements as of September 30, 2024 along with the level within the fair value hierarchy in which the fair value measurements, in their entirety, fall.
(In thousands)Fair Value at September 30, 2024Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Cash, cash equivalents, and restricted cash
Cash and money market$582,741 $582,741 $— $— 
U.S. government agency securities6,089 — 6,089 — 
Restricted cash (1)
5,837 5,837 — — 
Marketable securities
Corporate bonds$214,615 $— $214,615 $— 
U.S. government agency securities127,093 — 127,093 — 
Asset backed securities85,364 — 85,364 — 
Equity securities5,229 5,229 — — 
Non-marketable securities$686 $— $— $686 
Liabilities
Contingent consideration$(283,231)$— $— $(283,231)
Total$744,423 $593,807 $433,161 $(282,545)
The following table presents the Company’s fair value measurements as of December 31, 2023 along with the level within the fair value hierarchy in which the fair value measurements, in their entirety, fall.
(In thousands)Fair Value at December 31, 2023Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Cash, cash equivalents and restricted cash
Cash and money market$530,100 $530,100 $— $— 
Commercial paper72,243 — 72,243 — 
Restricted cash (1)
4,297