Company: VCYT
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001384101-25-000130
Chunk: 76

Company: VERACYTE, INC.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 76
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 point in time. The effect of any change made to an estimated input component and, therefore revenue or expense recognized, would be recorded as a change in estimate. In addition, variable consideration must be evaluated to determine if it is constrained and, therefore, excluded from the transaction price. At the inception of each arrangement that includes milestone payments (variable consideration), the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price. Milestone payments that are not 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 $2.5 million at September 30, 2025 and $3.8 million at December 31, 2024. Deferred revenue related to these agreements was $0.4 million at September 30, 2025 and $1.7 million 

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

at December 31, 2024. Revenue included in biopharmaceutical and other revenue for the three and nine months ended September 30, 2025 and 2024 was as follows (in thousands of dollars): Three Months Ended September 30,Nine Months Ended September 30, 2025202420252024Biopharmaceutical revenue$646 $2,041 $5,573 $5,962 Contract manufacturing and testing169 1,095 3,129 3,730 Total$815 $3,136 $8,702 $9,692 Cost of Testing Revenue The components of the Company's