10-Q 1 osur-20220331.htm 10-Q 10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

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

For the quarterly period ended March 31, 2022.

OR

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

For the transition period from to .

Commission File Number 001-16537

 

ORASURE TECHNOLOGIES, INC.

(Exact Name of Registrant as Specified in Its Charter)

 

 

 

 

 

Delaware

 

36-4370966

(State or Other Jurisdiction of

Incorporation or Organization)

 

(IRS Employer Identification No.)

 

 

 

 

220 East First Street, Bethlehem, Pennsylvania

 

18015

(Address of Principal Executive Offices)

 

(Zip code)

Registrant’s telephone number, including area code: (610) 882-1820

 

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

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, $0.000001 par value per share

 

OSUR

 

The NASDAQ Stock Market LLC

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

Indicate by check mark whether the Registrant has submitted electronically 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, or 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 checkmark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No

As of May 5, 2022, the registrant had 72,455,507 shares of common stock, $.000001 par value per share, outstanding.

 

 

 


 

PART I. FINANCIAL INFORMATION

 

 

 

 

Page
No.

 

 

Item 1. Financial Statements (Unaudited)

 

 

 

Consolidated Balance Sheets at March 31, 2022 and December 31, 2021

3

 

 

Consolidated Statements of Operations for the three months ended March 31, 2022 and 2021

4

 

 

Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2022 and 2021

5

 

 

Consolidated Statements of Cash Flows for the three months ended March 31, 2022 and 2021

6

 

 

Notes to the Consolidated Financial Statements

7

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

17

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

25

 

 

Item 4. Controls and Procedures

25

 

 

PART II. OTHER INFORMATION

 

 

 

Item 1. Legal Proceedings

25

 

 

Item 1A. Risk Factors

25

 

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

26

 

 

Item 3. Defaults Upon Senior Securities

26

 

 

Item 4. Mine Safety Disclosures

26

 

 

Item 5. Other Information

26

 

 

Item 6. Exhibits

27

 

 

Signatures

28

 

 

 

 

 


 

Item 1. FINANCIAL STATEMENTS

ORASURE TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands, except per share amounts)

 

 

March 31, 2022

 

 

December 31, 2021

 

ASSETS

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

$

70,721

 

 

$

116,762

 

Short-term investments

 

41,503

 

 

 

36,279

 

Accounts receivable, net of allowance for doubtful accounts of $3,789 and $3,418

 

59,671

 

 

 

45,323

 

Inventories

 

61,536

 

 

 

53,138

 

Prepaid expenses

 

8,906

 

 

 

7,939

 

Other current assets

 

26,027

 

 

 

28,990

 

Total current assets

 

268,364

 

 

 

288,431

 

Noncurrent Assets:

 

 

 

 

 

Property, plant and equipment, net

 

97,572

 

 

 

88,164

 

Operating right-of-use assets, net

 

12,169

 

 

 

9,056

 

Finance right-of-use assets, net

 

2,240

 

 

 

2,493

 

Intangible assets, net

 

13,692

 

 

 

14,343

 

Goodwill

 

40,389

 

 

 

40,279

 

Long-term investments

 

 

 

 

17,009

 

Other noncurrent assets

 

1,106

 

 

 

1,215

 

Total noncurrent assets

 

167,168

 

 

 

172,559

 

TOTAL ASSETS

$

435,532

 

 

$

460,990

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

$

27,057

 

 

$

28,024

 

Deferred revenue

 

2,906

 

 

 

2,936

 

Accrued expenses and other current liabilities

 

21,911

 

 

 

33,778

 

Finance lease liabilities

 

1,699

 

 

 

939

 

Operating lease liabilities

 

1,815

 

 

 

2,181

 

Acquisition-related contingent consideration obligation

 

199

 

 

 

206

 

Total current liabilities

 

55,587

 

 

 

68,064

 

Noncurrent Liabilities:

 

 

 

 

 

Finance lease liabilities

 

1,207

 

 

 

1,952

 

Operating lease liabilities

 

10,727

 

 

 

7,202

 

Acquisition-related contingent consideration obligation

 

117

 

 

 

354

 

Other noncurrent liabilities

 

552

 

 

 

651

 

Deferred income taxes

 

2,456

 

 

 

2,234

 

Total noncurrent liabilities

 

15,059

 

 

 

12,393

 

TOTAL LIABILITIES

 

70,646

 

 

 

80,457

 

Commitments and contingencies (Note 11)

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

 

 

Preferred stock, par value $.000001, 25,000 shares authorized, none issued

 

 

 

 

 

Common stock, par value $.000001, 120,000 shares authorized, 72,307 and 72,069 shares issued and outstanding

 

 

 

 

 

Additional paid-in capital

 

513,553

 

 

 

511,063

 

Accumulated other comprehensive loss

 

(8,247

)

 

 

(10,077

)

Accumulated deficit

 

(140,420

)

 

 

(120,453

)

Total stockholders' equity

 

364,886

 

 

 

380,533

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

435,532

 

 

$

460,990

 

 

See accompanying notes to the consolidated financial statements.

 

 

3


 

ORASURE TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(in thousands, except per share amounts)

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

NET REVENUES:

 

 

 

 

 

 

Products and services

 

$

65,236

 

 

$

56,579

 

Other

 

 

2,471

 

 

 

2,003

 

 

 

 

67,707

 

 

 

58,582

 

COST OF PRODUCTS AND SERVICES SOLD

 

 

43,435

 

 

 

20,256

 

Gross profit

 

 

24,272

 

 

 

38,326

 

OPERATING EXPENSES:

 

 

 

 

 

 

Research and development

 

 

8,413

 

 

 

8,992

 

Sales and marketing

 

 

12,717

 

 

 

9,530

 

General and administrative

 

 

19,156

 

 

 

10,188

 

Change in the estimated fair value of acquisition-related contingent consideration

 

 

(36

)

 

 

(806

)

 

 

 

40,250

 

 

 

27,904

 

Operating income (loss)

 

 

(15,978

)

 

 

10,422

 

OTHER INCOME (LOSS)

 

 

(53

)

 

 

(119

)

Income (loss) before income taxes

 

 

(16,031

)

 

 

10,303

 

INCOME TAX EXPENSE

 

 

3,936

 

 

 

6,529

 

NET INCOME (LOSS)

 

$

(19,967

)

 

$

3,774

 

INCOME (LOSS) PER SHARE:

 

 

 

 

 

 

BASIC

 

$

(0.28

)

 

$

0.05

 

DILUTED

 

$

(0.28

)

 

$

0.05

 

SHARES USED IN COMPUTING INCOME (LOSS) PER SHARE:

 

 

 

 

 

 

BASIC

 

 

72,194

 

 

 

71,878

 

DILUTED

 

 

72,194

 

 

 

72,766

 

 

See accompanying notes to the consolidated financial statements.

 

 

4


 

 

ORASURE TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(in thousands)

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

NET INCOME (LOSS)

 

$

(19,967

)

 

$

3,774

 

OTHER COMPREHENSIVE INCOME (LOSS)

 

 

 

 

 

 

Currency translation adjustments

 

 

1,756

 

 

 

1,352

 

Unrealized gain on marketable securities

 

 

74

 

 

 

21

 

COMPREHENSIVE INCOME (LOSS)

 

$

(18,137

)

 

$

5,147

 

 

See accompanying notes to the consolidated financial statements.

 

5


 

ORASURE TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands)

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income (loss)

 

$

(19,967

)

 

$

3,774

 

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

Stock-based compensation

 

 

3,524

 

 

 

1,464

 

Depreciation and amortization

 

 

3,682

 

 

 

2,489

 

Other non-cash amortization

 

 

80

 

 

 

138

 

Provision for doubtful accounts

 

 

347

 

 

 

598

 

Inventory reserve

 

 

1,092

 

 

 

129

 

Unrealized foreign currency (gain) loss

 

 

169

 

 

 

(100

)

Interest expense on finance leases

 

 

32

 

 

 

14

 

Deferred income taxes

 

 

200

 

 

 

(94

)

Loss on disposal of fixed assets

 

 

710

 

 

 

 

Change in the estimated fair value of acquisition-related contingent consideration

 

 

(36

)

 

 

(806

)

Payment of acquisition-related contingent consideration

 

 

 

 

 

(142

)

Changes in assets and liabilities

 

 

 

 

 

 

Accounts receivable

 

 

(15,295

)

 

 

2,188

 

Inventories

 

 

(9,374

)

 

 

(8,511

)

Prepaid expenses and other assets

 

 

(736

)

 

 

(766

)

Accounts payable

 

 

4,398

 

 

 

(253

)

Deferred revenue

 

 

(44

)

 

 

(262

)

Accrued expenses and other liabilities

 

 

(4,603

)

 

 

(4,253

)

Net cash used in operating activities

 

 

(35,821

)

 

 

(4,393

)

INVESTING ACTIVITIES:

 

 

 

 

 

 

Proceeds from maturities and redemptions of investments

 

 

12,135

 

 

 

33,745

 

Purchases of property and equipment

 

 

(20,219

)

 

 

(11,061

)

Purchase of property and equipment under government contracts

 

 

(28,188

)

 

 

 

Proceeds from funding under government contract

 

 

26,333

 

 

 

 

Other investing activities

 

 

 

 

 

(19

)

Net cash (used in) provided by investing activities

 

 

(9,939

)

 

 

22,665

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

Cash payments for lease liabilities

 

 

(153

)

 

 

(282

)

Proceeds from exercise of stock options

 

 

15

 

 

 

92

 

Payment of acquisition-related contingent consideration

 

 

(208

)

 

 

(264

)

Repurchase of common stock

 

 

(1,049

)

 

 

(1,730

)

Net cash used in financing activities

 

 

(1,395

)

 

 

(2,184

)

EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH

 

 

1,114

 

 

 

786

 

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

 

 

(46,041

)

 

 

16,874

 

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

116,762

 

 

 

160,802

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

70,721

 

 

$

177,676

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

 

 

 

 

 

 

Cash paid for income taxes

 

$

3,570

 

 

$

3,671

 

Non-cash investing and financing activities

 

 

 

 

 

 

Accrued property and equipment purchases

 

 

642

 

 

 

4,267

 

Accrued property and equipment purchases under government contracts

 

 

1,905

 

 

 

 

Unrealized gain on marketable securities

 

 

74

 

 

 

21

 

 

See accompanying notes to the consolidated financial statements.

 

 

6


 

ORASURE TECHNOLOGIES, INC. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(in thousands, except per share amounts, unless otherwise indicated)

 

1. Summary of Significant Accounting Policies

 

Principles of Consolidation and Basis of Presentation. The accompanying interim unaudited consolidated financial statements include the accounts of OraSure Technologies, Inc. (“OraSure”) and its wholly-owned subsidiaries, DNA Genotek Inc. (“DNAG”), Diversigen, Inc. (“Diversigen”), and Novosanis NV (“Novosanis”). All intercompany transactions and balances have been eliminated. References herein to “we,” “us,” “our,” or the “Company” mean OraSure and its consolidated subsidiaries, unless otherwise indicated. The unaudited financial statements, in the opinion of management, include all adjustments (consisting only of normal and recurring adjustments) necessary for a fair presentation of our financial position and results of operations for these interim periods. These financial statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021. Results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results of operations expected for the full year.

 

Summary of Significant Accounting Policies. There have been no changes to the Company's significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 that have had a material impact on the consolidated financial statements and related notes except as discussed herein.

 

Investments. We consider all investments in debt securities to be available-for-sale securities. These securities consist of guaranteed investment certificates and corporate bonds with purchased maturities greater than ninety days. Available-for-sale securities are carried at fair value, based upon quoted market prices, with unrealized gains and losses, if any, reported in stockholders’ equity as a component of accumulated other comprehensive loss.

 

We record an allowance for credit loss for our available-for-sale securities when a decline in investment market value is due to credit-related factors. When evaluating an investment for impairment, we review factors such as the severity of the impairment, changes in underlying credit ratings, forecasted recovery, the Company’s intent to sell or the likelihood that it would be required to sell the investment before its anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. During the three months ended March 31, 2022, we recognized a provision for expected credit losses for our available-for-sale securities of $65.

The following is a summary of our available-for-sale securities as of March 31, 2022 and December 31, 2021:

 

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair Value

 

March 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Guaranteed investment certificates

 

$

33,578

 

 

$

 

 

$

 

 

$

33,578

 

Corporate bonds

 

 

8,285

 

 

 

 

 

 

(360

)

 

 

7,925

 

Total available-for-sale securities

 

$

41,863

 

 

$

 

 

$

(360

)

 

$

41,503

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Guaranteed investment certificates

 

$

33,249

 

 

$

 

 

$

 

 

$

33,249

 

Corporate bonds

 

 

20,473

 

 

 

 

 

 

(434

)

 

 

20,039

 

Total available-for-sale securities

 

$

53,722

 

 

$

 

 

$

(434

)

 

$

53,288

 

At March 31, 2022, maturities of our available-for-sale
   securities were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

Less than one year

 

$

41,863

 

 

$

 

 

$

(360

)

 

$

41,503

 

Greater than one year

 

$

 

 

$

 

 

$

 

 

$

 

 

Fair Value of Financial Instruments. As of March 31, 2022 and December 31, 2021, the carrying values of cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate their respective fair values based on their short-term nature.

Fair value measurements of all financial assets and liabilities that are being measured and reported on a fair value basis are required to be classified and disclosed in one of the following three categories:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

 

7


 

Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

All of our available-for-sale debt securities are measured as Level 2 instruments as of March 31, 2022 and December 31, 2021. Our available-for-sale guaranteed investment certificates are measured as Level 1 instruments as of March 31, 2022 and December 31, 2021.

Included in cash and cash equivalents at March 31, 2022 and December 31, 2021, was $2,386 and $1,160 invested in government money market funds. These funds have investments in government securities and are measured as Level 1 instruments.

We offer a nonqualified deferred compensation plan for certain eligible employees and members of our Board of Directors. The assets of the plan are held in the name of the Company at a third-party financial institution. Separate accounts are maintained for each participant to reflect the amounts deferred by the participant and all earnings and losses on those deferred amounts. The assets of the plan are held in mutual funds and company stock. The fair value of the plan assets as of March 31, 2022 and December 31, 2021 was $1,660 and $1,763, respectively, and was calculated using the quoted market prices of the assets as of those dates. All investments in the plan are classified as trading securities and measured as Level 1 instruments. The fair value of plan assets is included in both current assets and noncurrent assets with the same amount included in accrued expenses and other noncurrent liabilities in the accompanying consolidated balance sheets.

 

Property, Plant and Equipment. Property, plant and equipment are stated at cost. Additions or improvements are capitalized, while repairs and maintenance are charged to expense. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the related assets. Buildings are depreciated over twenty years, while computer equipment, machinery and equipment, and furniture and fixtures are depreciated over two to ten years. Building improvements are amortized over their estimated useful lives. When assets are sold, retired, or discarded, the related property amounts are relieved from the accounts, and any gain or loss is recorded in the consolidated statements of operations. Accumulated depreciation of property, plant and equipment as of March 31, 2022 and December 31, 2021 was $63,984 and $61,157, respectively.

 

Intangible Assets. Intangible assets consist of customer relationships, patents and product rights, acquired technology and tradenames. Patents and product rights consist of costs associated with the acquisition of patents, licenses, and product distribution rights. Intangible assets are amortized using the straight-line method over their estimated useful lives of five to fifteen years. Accumulated amortization of intangible assets as of March 31, 2022 and December 31, 2021 was $31,142 and $30,412, respectively. The decrease in intangible assets from $14,343 as of December 31, 2021 to $13,692 as of March 31, 2022 was due to $568 in amortization expense and foreign currency translation losses of $83.

 

Foreign Currency Translation. The assets and liabilities of our foreign operations are translated into U.S. dollars at current exchange rates as of the balance sheet date, and revenues and expenses are translated at average exchange rates for the period. Resulting translation adjustments are reflected in accumulated other comprehensive loss, which is a separate component of stockholders’ equity.

 

Transaction gains and losses resulting from exchange rate changes on transactions denominated in currencies other than a functional currency are included in our consolidated statements of income in the period in which the change occurs. Net foreign exchange losses resulting from foreign currency transactions that are included in other income (loss) in our consolidated statements of income were $729 and $576 for the three months ended March 31, 2022 and 2021, respectively.

 

Accumulated Other Comprehensive Loss. We classify items of other comprehensive loss by their nature and disclose the accumulated balance of other comprehensive loss separately from accumulated deficit and additional paid-in capital in the stockholders’ equity section of our consolidated balance sheets.

 

We have defined the Canadian dollar as the functional currency of our Canadian subsidiary, DNAG, and we have defined the Euro as the functional currency of our Belgian subsidiary, Novosanis. The results of operations for those subsidiaries are translated into U.S. dollars, which is the reporting currency of the Company. Accumulated other comprehensive loss at March 31, 2022 consisted of $7,888 of currency translation adjustments and $359 of net unrealized losses on marketable securities, which represents the fair market value adjustment for our investment portfolio. Accumulated other comprehensive loss at December 31, 2021 consists of $9,643 of currency translation adjustments and $434 of net unrealized losses on marketable securities, which represents the fair market value adjustment for our investments portfolio.

 

Recent Accounting Pronouncements.

 

In March 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The purpose of this update is to provide optional guidance for a limited time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments provide

 

8


 

optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are elective and are effective upon issuance for all entities. Management is evaluating the impact of this ASU and does not expect this update to have a material impact on the Company's Consolidated Financial Statements.

 

 

2. Government Capital Contracts

 

In September 2021, we entered into an agreement for $109,000 in funding from the U.S. Department of Defense (the “DOD”), in coordination with the Department of Health and Human Services, to build additional manufacturing capacity in the United States for our InteliSwab® COVID-19 Rapid Tests as part of the nation’s pandemic preparedness plan. Funding will be paid to the Company based on achievement of milestones through March 2024 for the design, acquisition, installation, qualification and acceptance of the manufacturing equipment, as set forth in the agreement. In accordance with the milestone payment schedule, 15% of the total will not be funded until the completion of the final equipment validation, which is scheduled to occur in late 2023 or early 2024. We began making payments to vendors for the capital project during the fourth quarter of 2021 and began receiving funds from the DOD in January 2022.

 

Additionally, during 2021, we received $531 in funding from the Commonwealth of Pennsylvania, acting through the Department of Community and Economic Development, for the purchase of machinery and equipment as part of an expansion of manufacturing operations in Pennsylvania. All related purchases were completed in 2021.



Activity for these capital contracts is accounted for pursuant to International Accounting Standard ("IAS") 20, Accounting for Government Grants and Disclosure of Government Assistance. Funding earned in relation to capital-related costs incurred for government contracts is recorded as a reduction to the cost of property, plant and equipment and reflected within investing activities in the consolidated statements of cash flows; and associated unpaid liabilities and government proceeds receivable are considered non-cash changes in such balances within the operating section of the consolidated statements of cash flows. Amounts earned in excess of our expected cost of the project for project management are recognized straight-line in other income over the term of the government contract. We recognized $561 of such income, which is reported as other income (loss) in our consolidated statement of operations for the three months ended March 31, 2022.

 

The balances corresponding to government contracts included in our consolidated balance sheet are as follows:

 

 

 

March 31, 2022

 

 

December 31, 2021

 

Other current assets:

 

 

 

 

 

Billed receivables

$

-

 

 

$

9,913

 

Unbilled receivables

 

16,857

 

 

 

9,716

 

Total other current assets

 

16,857

 

 

 

19,629

 

Property, plant and equipment, net:

 

 

 

 

 

Cost of assets

 

41,588

 

 

 

11,495

 

Reduction for funding earned, not yet received

 

(14,724

)

 

 

(10,964

)

Reduction for funding received

 

(26,864

)

 

 

(531

)

Total property, plant and equipment, net

 

 

 

 

 

Accrued expenses and other current liabilities

 

(788

)

 

 

(8,103

)

 

 

3. Inventories

 

 

 

March 31, 2022

 

 

December 31, 2021

 

Raw materials

 

$

40,211

 

 

$

33,168

 

Work in process

 

 

2,507

 

 

 

2,252

 

Finished goods

 

 

18,818

 

 

 

17,718

 

 

 

$

61,536

 

 

$

53,138

 

 

4. Earnings (Loss) Per Share

Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is computed in a manner similar to basic earnings (loss) per share except that the weighted-average number of shares outstanding is increased to include incremental shares from the assumed vesting or exercise of dilutive securities, such as common stock options, unvested restricted stock or performance stock units, unless the impact is antidilutive. The number of incremental shares is calculated by assuming that outstanding stock options were exercised and unvested restricted shares and performance stock units were

 

9


 

vested, and the proceeds from such exercises or vesting were used to acquire shares of common stock at the average market price during the reporting period. Basic and dilutive computations of net loss per share are the same in periods in which a net loss exists as the dilutive effects of excluded items would be anti-dilutive.

The computations of basic and diluted earnings (loss) per share are as follows:

 

 

Three Months Ended March 31,

 

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(19,967

)

 

$

3,774

 

 

Weighted-average shares of common stock outstanding:

 

 

 

 

 

 

 

Basic

 

 

72,194

 

 

 

71,878

 

 

Dilutive effect of stock options, restricted stock, and performance stock units

 

 

 

 

 

888

 

 

Diluted

 

 

72,194

 

 

 

72,766

 

 

Earnings (loss) per share:

 

 

 

 

 

 

 

Basic

 

$

(0.28

)

 

$

0.05

 

 

Diluted

 

$

(0.28

)

 

$

0.05

 

 

 

For the three months ended March 31, 2022, outstanding common stock options, unvested restricted stock, and unvested performance stock units representing 463 shares were excluded from the computation of diluted loss per share. For the three months ended March 31, 2021, outstanding common stock options, unvested restricted stock, and unvested performance stock units representing 421 shares were excluded from the computation of diluted earnings per share as their inclusion would have been anti-dilutive.

 

5. Revenues

Revenues by product line. The following table represents total net revenues by product line:

 

 

Three Months Ended March 31,

 

 

2022

 

 

2021

 

 

COVID-19 (1)

 

$

31,032

 

 

$

27,972

 

 

Genomics (1)

 

 

15,093

 

 

 

10,818

 

 

HIV

 

 

8,166

 

 

 

8,778

 

 

HCV

 

 

3,257

 

 

 

2,367

 

 

Substance abuse

 

 

2,560

 

 

 

1,962

 

 

Microbiome (1)

 

 

1,990

 

 

 

1,751

 

 

Laboratory services

 

 

1,733

 

 

 

2,497

 

 

Other product and service revenues

 

 

1,405

 

 

 

434

 

 

Net product and services revenues

 

 

65,236

 

 

 

56,579

 

 

Royalty income

 

 

685

 

 

 

1,261

 

 

Other non-product revenues

 

 

1,786

 

 

 

742

 

 

Other revenues

 

 

2,471

 

 

 

2,003

 

 

Net revenues

 

$

67,707

 

 

$

58,582

 

 

 

(1) 2021 COVID-19, Genomics and Microbiome revenues were reclassified to reflect the correct classification of the product line sales. The reclassification increased (decreased) the product line revenues for the three months ended March 31, 2021 by $583, $(246) and $(337), respectively.

 

Revenues by geographic area. The following table represents total net revenues by geographic area, based on the location of the customer: