Company: VCYT
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001384101-25-000110
Chunk: 23

Company: VERACYTE, INC.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 within either party’s control, such as non-operational developmental and regulatory approvals, are generally not considered probable of being achieved until those approvals are received. At the end of each reporting period, the Company re-evaluates the probability of achievement of milestones that are within either party’s control, such as operational developmental milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenue and earnings in the period of adjustment. Revisions to the Company’s estimate of the transaction price may also result in negative revenue and earnings in the period of adjustment. One collaboration arrangement with milestone payments falls under the scope of ASC Topic 808, Collaborative Arrangements, or ASC 808. These milestone payments are recognized in the same manner as milestone payments from customers and are classified under biopharmaceutical and other revenue.Accounts receivable from biopharmaceutical and other revenue was $4.1 million at June 30, 2025 and $3.8 million at December 31, 2024. Deferred revenue related to these agreements was $1.5 million at June 30, 2025 and $1.7 million at December 31, 2024. Revenue included in biopharmaceutical and other revenue for the three and six months ended June 30, 2025 and 2024 was as follows (in thousands of dollars): Three Months Ended June 30,Six Months Ended June 30, 2025202420252024Biopharmaceutical revenue$2,630 $1,702 $4,927 $2,656 Contract manufacturing and testing1,673 1,850 2,960 3,900 Total$4,303 $3,552 $7,887 $6,556 

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Table of ContentsVERACYTE, INC.Notes to Financial Statements(unaudited)

Cost of Testing Revenue The components of the Company's cost of testing services are laboratory expenses, sample collection expenses, compensation expense, license fees and royalties, depreciation, other expenses such as equipment and laboratory supplies, and allocations of facility and information technology expenses. Costs associated with performing tests are expensed as the test is processed regardless of whether and when revenue is recognized with respect to that test. Cost of Product Revenue Cost of product revenue consists primarily of costs of purchasing diagnostic kit components, labor, installation, service and packaging