Company: VCYT
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001384101-25-000110
Chunk: 83

Company: VERACYTE, INC.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 83
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,503)Income tax provision2,230 1,627 2,611 1,583 Net income (loss)$(980)$5,734 $6,067 $3,870 

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________________(1)Other cost of testing revenue includes cytopathology services, depreciation and amortization and other expenses.(2)Other cost of product revenue includes license fees and royalties, depreciation and amortization and other expenses.(3)Other cost of biopharmaceutical and other revenue includes license fees and royalties, depreciation and amortization and other expenses.(4)Other research and development expenses includes depreciation and amortization and other expenses.(5)Other selling and marketing expenses includes travel, entertainment, conference and other expenses.(6)Other general and administrative expenses includes professional fees, information technology expense, occupancy costs, depreciation and amortization, contingent consideration and other expenses.

10. Income Taxes

The provision for income taxes is based on the current estimate of the annual effective tax rate applied to the Company’s year to date income and is adjusted for discrete items recorded in the period. For the three months ended June 30, 2025 and 2024, the Company’s effective tax rate was 178.5% and 22.1%, respectively. The non-cash impairment of $20.5 million recorded in the period was treated as a discrete item for provisioning purposes and excluded from income thus the Company’s effective tax rate for the three months ended June 30, 2025 was substantially higher when compared to prior periods. For the six months ended June 30, 2025 and 2024, the Company’s effective tax rate was 30.1% and 29.0%, respectively. For the six months ended June 30, 2025, the primary difference between the effective tax rate and the federal statutory rate is driven by unfavorable permanent differences, offset by the full valuation allowance the Company has established on its federal, state and foreign net operating losses and credits. For the six months ended June 30, 2024, the primary difference between the effective tax rate and the federal statutory rate is driven by the full valuation allowance the Company has established on its federal, state and foreign net operating losses and credits.The Company recorded income tax expense of $2.2 million and $1.6 million for the three months ended June 30, 2025 and 2024, respectively, and recorded income tax expense of $2.6 million and $1