Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 01, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | FLGT | |
Entity Registrant Name | FULGENT GENETICS, INC. | |
Entity Central Index Key | 0001674930 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 30,265,754 | |
Entity File Number | 001-37894 | |
Entity Tax Identification Number | 81-2621304 | |
Entity Address, Address Line One | 4978 Santa Anita Avenue | |
Entity Address, City or Town | Temple City | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91780 | |
City Area Code | 626 | |
Local Phone Number | 350-0537 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 138,780 | $ 164,894 |
Marketable securities | 376,622 | 285,605 |
Trade accounts receivable, net of allowance for credit losses of $30,335 and $11,217 | 133,303 | 138,912 |
Other current assets | 26,480 | 22,549 |
Total current assets | 675,185 | 611,960 |
Marketable securities, long-term | 415,621 | 485,047 |
Redeemable preferred stock investment | 11,981 | 21,965 |
Fixed assets, net | 86,049 | 62,287 |
Intangible assets, net | 89,695 | 35,914 |
Goodwill | 121,354 | 50,897 |
Other long-term assets | 61,777 | 10,650 |
Total assets | 1,461,662 | 1,278,720 |
Current liabilities | ||
Accounts payable | 37,109 | 20,494 |
Accrued liabilities | 27,100 | 17,689 |
Income tax payable | 2,804 | 787 |
Contract liabilities | 10,102 | 14,570 |
Customer deposit | 28,959 | 19,806 |
Investment margin loan | 14,999 | 15,137 |
Contingent consideration | 0 | 10,000 |
Notes payable, current portion | 5,793 | 6,147 |
Other current liabilities | 661 | 680 |
Total current liabilities | 127,527 | 105,310 |
Unrecognized tax benefits | 1,730 | 725 |
Other long-term liabilities | 21,672 | 6,805 |
Total liabilities | 150,929 | 112,840 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity | ||
Common stock, $0.0001 par value per share, 50,000 shares authorized, 30,481 shares issued and 30,266 shares outstanding and 30,160 shares issued and outstanding | 3 | 3 |
Preferred stock, $0.0001 par value per share, 1,000 shares authorized, no shares issued or outstanding | ||
Additional paid-in capital | 504,066 | 501,908 |
Accumulated other comprehensive loss | (22,417) | (759) |
Retained earnings | 823,113 | 657,597 |
Total Fulgent stockholders' equity | 1,304,765 | 1,158,749 |
Noncontrolling interest | 5,968 | 7,131 |
Total stockholders’ equity | 1,310,733 | 1,165,880 |
Total liabilities and stockholders’ equity | $ 1,461,662 | $ 1,278,720 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 30,335 | $ 11,217 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 30,481,000 | 30,160,000 |
Common stock, shares outstanding | 30,266,000 | 30,160,000 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenue | $ 125,341 | $ 153,616 | $ 445,609 | $ 513,045 |
Cost of revenue | 60,065 | 35,858 | 137,790 | 109,933 |
Gross profit | 65,276 | 117,758 | 307,819 | 403,112 |
Operating expenses: | ||||
Research and development | 6,905 | 5,312 | 12,894 | 10,734 |
Selling and marketing | 10,866 | 5,219 | 18,806 | 10,227 |
General and administrative | 30,240 | 8,329 | 56,015 | 16,331 |
Amortization of intangible assets | 1,575 | 2,481 | ||
Restructuring Costs | 2,896 | 2,896 | ||
Total operating expenses | 52,482 | 18,860 | 93,092 | 37,292 |
Operating income | 12,794 | 98,898 | 214,727 | 365,820 |
Interest and other income, net | 958 | 604 | 1,003 | 886 |
Income before income taxes and gain on equity method investment | 13,752 | 99,502 | 215,730 | 366,706 |
Provision for income taxes | 2,653 | 23,589 | 51,074 | 90,102 |
Income before gain on equity method investment | 11,099 | 75,913 | 164,656 | 276,604 |
Gain on equity method investment | 3,734 | 3,734 | ||
Net income from consolidated operations | 11,099 | 79,647 | 164,656 | 280,338 |
Net loss attributable to noncontrolling interests | 438 | 165 | 860 | 165 |
Net income attributable to Fulgent | $ 11,537 | $ 79,812 | $ 165,516 | $ 280,503 |
Net income per common share attributable to Fulgent: | ||||
Basic | $ 0.38 | $ 2.74 | $ 5.46 | $ 9.68 |
Diluted | $ 0.37 | $ 2.59 | $ 5.30 | $ 9.10 |
Weighted-average common shares: | ||||
Basic | 30,362 | 29,150 | 30,298 | 28,991 |
Diluted | 31,189 | 30,830 | 31,225 | 30,809 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income from consolidated operations | $ 11,099 | $ 79,647 | $ 164,656 | $ 280,338 |
Other comprehensive income (loss): | ||||
Foreign currency translation (loss) gain | (1,878) | 36 | (1,755) | 36 |
Net loss on available-for-sale debt securities, net of tax | (8,468) | (75) | (20,206) | (729) |
Comprehensive income from consolidated operations | 753 | 79,608 | 142,695 | 279,645 |
Net loss attributable to noncontrolling interest | 438 | 165 | 860 | 165 |
Foreign currency translation loss (gain) attributable to noncontrolling interest | 422 | (10) | 303 | (10) |
Comprehensive loss attributable to noncontrolling interest | 860 | 155 | 1,163 | 155 |
Comprehensive income attributable to Fulgent | $ 1,613 | $ 79,763 | $ 143,858 | $ 279,800 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) $ in Thousands | Total | November 2020 Equity Distribution Agreement | Cumulative Effect, Period of Adoption, Adjustment | Stockholders' Equity | Stockholders' Equity November 2020 Equity Distribution Agreement | Additional Paid-In Capital | Additional Paid-In Capital November 2020 Equity Distribution Agreement | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Fulgent Stockholders' Equity | Fulgent Stockholders' Equity November 2020 Equity Distribution Agreement | Fulgent Stockholders' Equity Cumulative Effect, Period of Adoption, Adjustment | Noncontrolling Interest |
Beginning Balance at Dec. 31, 2020 | $ 569,387 | $ (887) | $ 3 | $ 418,065 | $ 438 | $ 150,881 | $ (887) | $ 569,387 | $ (887) | |||||
Beginning Balance, Shares at Dec. 31, 2020 | 28,178,000 | |||||||||||||
Equity-based compensation | 2,962 | 2,962 | 2,962 | |||||||||||
Exercise of common stock options | 44 | 44 | 44 | |||||||||||
Exercise of common stock options, Shares | 45,000 | |||||||||||||
Restricted stock awards, Shares | 187,000 | |||||||||||||
Common stock withholding for employee tax obligations | (513) | (513) | (513) | |||||||||||
Common stock withholding for employee tax obligations, Shares | (4,000) | |||||||||||||
Issuance of common stock | $ 30,297 | $ 30,297 | $ 30,297 | |||||||||||
Issuance of common stock, Shares | 583,000 | |||||||||||||
Other comprehensive income (loss) | (654) | (654) | (654) | |||||||||||
Cumulative tax effect of accounting change | 239 | 239 | 239 | |||||||||||
Net income (loss) | 200,691 | 200,691 | 200,691 | |||||||||||
Ending Balance at Mar. 31, 2021 | 801,566 | $ 3 | 450,855 | (216) | 350,924 | 801,566 | ||||||||
Ending Balance, Shares at Mar. 31, 2021 | 28,989,000 | |||||||||||||
Beginning Balance at Dec. 31, 2020 | 569,387 | $ (887) | $ 3 | 418,065 | 438 | 150,881 | $ (887) | 569,387 | $ (887) | |||||
Beginning Balance, Shares at Dec. 31, 2020 | 28,178,000 | |||||||||||||
Net income (loss) | 280,338 | |||||||||||||
Ending Balance at Jun. 30, 2021 | 920,725 | $ 3 | 482,255 | (265) | 430,736 | 912,729 | $ 7,996 | |||||||
Ending Balance, Shares at Jun. 30, 2021 | 29,513,000 | |||||||||||||
Beginning Balance at Mar. 31, 2021 | 801,566 | $ 3 | 450,855 | (216) | 350,924 | 801,566 | ||||||||
Beginning Balance, Shares at Mar. 31, 2021 | 28,989,000 | |||||||||||||
Equity-based compensation | 3,526 | 3,526 | 3,526 | |||||||||||
Exercise of common stock options | 24 | 24 | 24 | |||||||||||
Exercise of common stock options, Shares | 4,000 | |||||||||||||
Restricted stock awards, Shares | 143,000 | |||||||||||||
Common stock withholding for employee tax obligations | (39) | (39) | (39) | |||||||||||
Common stock withholding for employee tax obligations, Shares | (1,000) | |||||||||||||
Issuance of common stock | 27,889 | 27,889 | 27,889 | |||||||||||
Issuance of common stock, Shares | 378,000 | |||||||||||||
Noncontrolling interest assumed related to acquisitions | 8,151 | 8,151 | ||||||||||||
Other comprehensive income (loss) | (39) | (49) | (49) | 10 | ||||||||||
Net income (loss) | 79,647 | 79,812 | 79,812 | (165) | ||||||||||
Ending Balance at Jun. 30, 2021 | 920,725 | $ 3 | 482,255 | (265) | 430,736 | 912,729 | 7,996 | |||||||
Ending Balance, Shares at Jun. 30, 2021 | 29,513,000 | |||||||||||||
Beginning Balance at Dec. 31, 2021 | $ 1,165,880 | $ 3 | 501,908 | (759) | 657,597 | 1,158,749 | 7,131 | |||||||
Beginning Balance, Shares at Dec. 31, 2021 | 30,160,000 | 30,160,000 | ||||||||||||
Equity-based compensation | $ 5,616 | 5,616 | 5,616 | |||||||||||
Exercise of common stock options | 16 | 16 | 16 | |||||||||||
Exercise of common stock options, Shares | 3,000 | |||||||||||||
Restricted stock awards, Shares | 172,000 | |||||||||||||
Common stock withholding for employee tax obligations | (494) | (494) | (494) | |||||||||||
Common stock withholding for employee tax obligations, Shares | (8,000) | |||||||||||||
Other comprehensive income (loss) | (11,615) | (11,734) | (11,734) | 119 | ||||||||||
Net income (loss) | 153,557 | 153,979 | 153,979 | (422) | ||||||||||
Ending Balance at Mar. 31, 2022 | 1,312,960 | $ 3 | 507,046 | (12,493) | 811,576 | 1,306,132 | 6,828 | |||||||
Ending Balance, Shares at Mar. 31, 2022 | 30,327,000 | |||||||||||||
Beginning Balance at Dec. 31, 2021 | $ 1,165,880 | $ 3 | 501,908 | (759) | 657,597 | 1,158,749 | 7,131 | |||||||
Beginning Balance, Shares at Dec. 31, 2021 | 30,160,000 | 30,160,000 | ||||||||||||
Net income (loss) | $ 164,656 | |||||||||||||
Ending Balance at Jun. 30, 2022 | $ 1,310,733 | $ 3 | 504,066 | (22,417) | 823,113 | 1,304,765 | 5,968 | |||||||
Ending Balance, Shares at Jun. 30, 2022 | 30,481,000 | 30,266,000 | ||||||||||||
Beginning Balance at Mar. 31, 2022 | $ 1,312,960 | $ 3 | 507,046 | (12,493) | 811,576 | 1,306,132 | 6,828 | |||||||
Beginning Balance, Shares at Mar. 31, 2022 | 30,327,000 | |||||||||||||
Equity-based compensation | 8,030 | 8,030 | 8,030 | |||||||||||
Exercise of common stock options | 3 | 3 | 3 | |||||||||||
Exercise of common stock options, Shares | 1,000 | |||||||||||||
Restricted stock awards, Shares | 161,000 | |||||||||||||
Common stock withholding for employee tax obligations | (436) | (436) | (436) | |||||||||||
Common stock withholding for employee tax obligations, Shares | 8,000 | |||||||||||||
Repurchase of common stock | $ (10,577) | (10,577) | (10,577) | |||||||||||
Repurchase of common stock, Shares | (215,000) | (215,000) | ||||||||||||
Other comprehensive income (loss) | $ (10,346) | (9,924) | (9,924) | (422) | ||||||||||
Net income (loss) | 11,099 | 11,537 | 11,537 | (438) | ||||||||||
Ending Balance at Jun. 30, 2022 | $ 1,310,733 | $ 3 | $ 504,066 | $ (22,417) | $ 823,113 | $ 1,304,765 | $ 5,968 | |||||||
Ending Balance, Shares at Jun. 30, 2022 | 30,481,000 | 30,266,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (unaudited) (Parenthetical) - $ / shares | Jun. 30, 2021 | Mar. 31, 2021 |
November 2020 Equity Distribution Agreement | ||
Selling price per share | $ 73.75 | $ 52 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flow from operating activities: | ||
Net income from consolidated operations | $ 164,656 | $ 280,338 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity-based compensation | 13,646 | 6,488 |
Depreciation and amortization | 13,040 | 4,340 |
Provision for credit losses | 18,734 | 3,259 |
Noncash lease expense | 1,710 | 298 |
Loss on disposal of fixed asset | 309 | 598 |
Amortization of premium of marketable securities | 3,223 | 3,171 |
Deferred taxes | (7,639) | (3,055) |
Unrecognized tax benefits | 1,005 | 128 |
Net loss on marketable securities | 617 | 360 |
Gain on equity method investment | (3,734) | |
Other | (17) | (8) |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 1,802 | 32,460 |
Other current and long-term assets | (1,854) | (6,025) |
Accounts payable | (10,258) | (10,256) |
Income tax payable | 1,978 | (26,920) |
Accrued liabilities and other liabilities | 264 | 28,141 |
Operating and finance lease liabilities | (1,679) | (293) |
Net cash provided by operating activities | 199,537 | 309,290 |
Cash flow from investing activities: | ||
Purchase of marketable securities | (245,488) | (424,807) |
Acquisition of businesses, net of cash acquired | (137,755) | (18,509) |
Investment in private equity securities | (15,000) | |
Contingent consideration payout related to a business acquisition | (10,000) | |
Purchases of fixed assets | (8,618) | (14,427) |
Proceeds from sale of fixed assets | 18 | 13 |
Maturities of marketable securities | 70,432 | 34,538 |
Proceeds from sale of marketable securities | 133,407 | 51,696 |
Net cash used in investing activities | (213,004) | (371,496) |
Cash flow from financing activities: | ||
Repurchase of common stock | (10,577) | |
Common stock withholding for employee tax obligations | (930) | (552) |
Repayment of notes payable | (368) | |
Principal paid for finance lease | (230) | |
Proceeds from exercise of stock options | 19 | 68 |
Proceeds from public offerings of common stock, net of issuance costs | 75,656 | |
Proceeds from noncontrolling interest | 10 | |
Borrowing under margin account | 58 | |
Net cash (used in) provided by financing activities | (12,086) | 75,240 |
Effect of exchange rate changes on cash and cash equivalents | (561) | 1 |
Net (decrease) increase in cash and cash equivalents | (26,114) | 13,035 |
Cash and cash equivalents at beginning of period | 164,894 | 87,426 |
Cash and cash equivalents at end of period | 138,780 | 100,461 |
Supplemental disclosures of cash flow information: | ||
Income taxes paid | 54,982 | 119,980 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Purchases of fixed assets in accounts payable | 2,158 | 742 |
Purchases of fixed assets in notes payable | $ 3,833 | |
Operating lease right-of-use assets obtained in exchange for lease liabilities | 765 | |
Operating lease right-of-use assets reduced due to lease modification and termination | 185 | |
Public offerings costs included in accounts payable | $ 30 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview and Basis of Presentation | Note 1. Overview and Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP. These financial statements include the assets, liabilities, revenues and expenses of all subsidiaries and entities in which the Company has a controlling financial interest or is deemed to be the primary beneficiary. In determining whether the Company is the primary beneficiary of an entity, the Company applies a qualitative approach that determines whether it has both (i) the power to direct the economically significant activities of the entity and (ii) the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to that entity. The Company uses the equity method to account for its investments in entities that it does not control, but in which it has the ability to exercise significant influence over operating and financial policies. All significant intercompany accounts and transactions are eliminated from the accompanying condensed consolidated financial statements. Nature of the Business Fulgent Genetics, Inc., together with its subsidiaries and affiliated professional corporations, or PCs, collectively referred to as the Company, unless otherwise noted or the context otherwise requires, is a technology company offering large-scale COVID-19 testing services, molecular diagnostic testing services and comprehensive genetic testing designed to provide physicians with clinically actionable diagnostic information to improve the quality of patient care. A cornerstone of the Company’s business is its ability to provide expansive options and flexibility for all clients’ unique testing needs. To this end, the Company has developed a proprietary technology platform allowing it to offer a broad and flexible test menu and to continually expand and improve its proprietary genetic reference library, while maintaining accessible pricing, high accuracy and competitive turnaround times. Combining next generation sequencing, or NGS, with its technology platform, the Company performs full-gene sequencing with deletion/duplication analysis in single-gene tests; pre-established, multi-gene, disease-specific panels; and customized panels that can be tailored to meet specific customer needs. Unaudited Interim Financial Information The accompanying unaudited interim condensed consolidated financial statements have been prepared on the same basis as the Company’s audited consolidated financial statements as of and for the fiscal year ended December 31, 2021, which are included in the Company’s annual report on Form 10-K filed with the Securities and Exchange Commission, or SEC, on February 28, 2022, or the 2021 Annual Report, and, in the opinion of management, include all adjustments, which are normal and recurring in nature, necessary for a fair presentation of the Company’s financial position and results of operations. Operating results for interim periods are not necessarily indicative of the results that may be expected for a full fiscal year or any other period. The accompanying Condensed Consolidated Balance Sheet as of December 31, 2021 has been derived from the Company’s audited consolidated financial statements at that date but does not include all of the disclosures required by U.S. GAAP. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements included in the 2021 Annual Report, including the notes thereto. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies See the summary of the Company’s significant accounting policies set forth in the notes to its consolidated financial statements included in the 2021 Annual Report. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting periods. These estimates, judgments and assumptions are based on historical data and experience available at the date of the accompanying condensed consolidated financial statements, as well as various other factors management believes to be reasonable under the circumstances, including but not limited to the potential impacts arising from the recent global pandemic related to COVID-19. As the extent and duration of the impacts from COVID-19 remain unclear, the Company’s estimates and assumptions may evolve as conditions change. Actual results could differ significantly from these estimates. On an on-going basis, management evaluates its estimates, primarily those related to: (i) revenue recognition criteria; (ii) accounts receivable and allowances for credit losses; (iii) the useful lives of fixed assets and intangible assets; (iv) estimates of tax liabilities; and (v) valuation of intangible assets and goodwill. Marketable Securities All marketable debt securities, which consist of corporate debt securities, municipal bonds, U.S. government and agency debt securities, U.S. treasury bills, and Yankee debt securities issued by foreign governments or entities and denominated in U.S. dollars have been classified as “available-for-sale,” and are carried at fair value. Net unrealized gains and losses, net of any related tax effects, are excluded from earnings and are included in other comprehensive income (loss) and reported as a separate component of stockholders’ equity until realized. Realized gains and losses on marketable debt securities are included in interest and other income, net, in the accompanying Condensed Consolidated Statements of Income. The cost of any marketable debt securities sold is based on the specific-identification method. The amortized cost of marketable debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Interest on marketable debt securities is included in interest and other income, net. In accordance with the Company’s investment policy, management invests to diversify credit risk and only invests in securities with high credit quality, including U.S. government securities. The Company’s investments in marketable equity securities are measured at fair value with the related gains and losses, realized and unrealized, recognized in interest and other income, net, in the accompanying Condensed Consolidated Statements of Income. The cost of any marketable equity securities sold is based on the specific-identification method. For available-for-sale debt securities, in an unrealized loss, the Company determines whether a credit loss exists. The credit loss is estimated by considering available information relevant to the collectability of the security and information about past events, current conditions, and reasonable and supportable forecasts. The Company compares the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows to be collected is less than the amortized basis of the security, a credit loss exists, and any credit loss is recorded as a charge to interest and other income, net, not to exceed the amount of the unrealized loss. If the Company has an intent to sell, or if it is more likely than not that the Company will be required to sell a debt security in an unrealized loss position before recovery of its amortized cost basis, the Company will write down the security to its fair value and record the corresponding charge as a component of interest and other income, net. Trade Accounts Receivable and Allowance for Credit Losses Trade accounts receivable are stated at the amount the Company expects to collect. The Company maintains an allowance for credit losses for expected uncollectible trade accounts receivable, which is recorded as an offset to trade accounts receivable, and changes in allowance for credit losses are classified as a general and administrative expense in the accompanying Condensed Consolidated Statements of Income. The Company assesses collectability by reviewing trade accounts receivable on a collective basis where similar risk characteristics exist and on an individual basis when it identifies specific customers that have deterioration in credit quality such that they may no longer share similar risk characteristics with the other receivables. In determining the amount of the allowance for credit losses, the Company uses a probability-of-default and loss given default model, which allows the ability to define a point of default and measure credit losses for receivables that have reached the point of default for purposes of calculating the allowance for credit losses. Loss given default represents the likelihood that a receivable that has reached the point of default will not be collected in full. The Company updates its probability-of-default and loss given default factors annually to incorporate the most recent historical data and adjusts the quantitative portion of the reserve through its qualitative reserve overlay. The Company looks at qualitative factors such as general economic conditions in determining expected credit losses. During the three and six months ended June 30, 2022, the Company recorded $ 7.2 million and $ 18.7 million of provision for credit losses for trade accounts receivable, respectively. During the three and six months ended June 30, 2021, the Company recorded $ 2.2 million and $ 3.3 million of provision for credit losses for trade accounts receivable, respectively. Redeemable Preferred Stock Investment The redeemable preferred stock investment of $ 12.0 million as of June 30, 2022 represents the fair value of redeemable preferred stock of a private company, that the Company purchased in July 2021. The investment is classified as available-for-sale debt securities. The fair value of available-for-sale debt security is included in the Consolidated Statement of Balance Sheets. Unrealized loss of $ 8.0 million is excluded from earnings and reported in other comprehensive income (loss) as of June 30, 2022. Since the Company intends on holding the preferred stock, and the preferred stock is not redeemable until July 2027 , the investment is recorded as a long-term investment. Foreign Currency Translation and Foreign Currency Transactions The Company translates the assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in foreign currency translation included in accumulated other comprehensive income (loss) in the accompanying Condensed Consolidated Statements of Stockholders’ Equity. Loss from these translations were $ 1.9 million and $ 1.8 million in the three and six months ended June 30, 2022, respectively. Gain from these translations were not significant in the three and six months ended June 30, 2021. The Company and its subsidiaries that use the U.S. dollar as their functional currency remeasure monetary assets and liabilities at exchange rates in effect at the end of each period, whereas reagents and supplies, property and nonmonetary assets and liabilities are measured at historical rates. Losses from these remeasurements were not significant in the three and six months ended June 30, 2022 and 2021. Comprehensive Income (Loss) Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) consists of net unrealized gain or loss on available-for-sale debt securities, net of tax, and foreign currency translation adjustments from the Company's subsidiaries not using the U.S. dollar as their fun ctional currency. Reclassifications from other comprehensive income (loss) to net earnings were not significant in the three and six months ended June 30, 2022 and 2021. The tax effects related to net unrealized loss on available-for-sale debt securities were $ 1.3 million and $ 5.8 million in the three and six months ended June 30, 2022, respectively. The tax effects were no t significant in the three and six months ended June 30, 2021 . Leases The Company determines if an arrangement is a lease at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether the Company obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. Operating and finance lease right-of-use assets, or ROU assets, short-term lease liabilities, and long-term lease liabilities are included in other long-term assets, accrued liabilities, and other long-term liabilities, respectively, in the accompanying Condensed Consolidated Balance Sheets. Lease ROU assets represent the Company’s right to use an underlying asset for the lease term. Lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term, including options to extend the lease when it is reasonably certain that the Company will exercise that option. The Company uses its incremental borrowing rate based on the information available at the commencement date, including inquiries with its bank, in determining the present value of lease payments since its leases do not provide an implicit rate. Lease ROU assets consist of initial measurement of lease liabilities, any lease payments made to lessor on or before the lease commencement date, minus any lease incentive received, and any initial direct costs incurred by the Company. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term. For finance lease, ROU assets are amortized on a straight-line basis from the commencement date to the earlier of the end of useful life of the ROU assets or the end of the lease term. Amortization of ROU assets and interest on the lease liability for finance leases are included as charges to the accompanying Condensed Consolidated Statements of Income. Lease ROU assets and liabilities arising from business combinations are recognized and measured at the acquisition dates as if an acquired lease were a new lease at the date of acquisition using the Company’s incremental borrowing rate unless the discount rate is implicit in the lease. The Company elects to not to recognize assets or liabilities as of the acquisition dates for leases that, on the acquisition dates, have a remaining lease term of 12 months or less. The Company also retains the acquirees’ classification of the leases if there are no modifications as part of the business combinations. The Company leases and subleases out space in buildings it owns or leases to third-party tenants or subtenants under noncancelable operating leases. The Company recognizes lease payments as income over the lease terms on a straight-line basis and recognizes variable lease payments as income in the period in which the changes in facts and circumstances on which the variable lease payments are based occur. The net rental income is included in the interest and other income, net, in the accompanying Condensed Consolidated Statement of Income. Concentration of Customers In certain periods, a small number of customers has accounted for a significant portion of the Company’s revenue. After aggregating customers that are under common control or affiliation, two customers contributed 15 % and 12 % of the Company's revenue for the three months ended June 30, 2022, respectively, and one customer contributed 23 % of the Company's revenue for the six months ended June 30, 2022. Two customers contributed 20 % and 16 % of the Company’s revenue for the three months ended June 30, 2021, respectively, and two customers contributed 24 % and 11 % of the Company’s revenue for the six months ended June 30, 2021, respectively. No customer comprised 10 % or more of total accounts receivable as of June 30, 2022 and December 31, 2021. Disaggregation of Revenue The Company classifies its customers into three payor types: (i) Insurance, including claim reimbursement from the U.S. Health Resources and Services Administration, or H RSA, for uninsured individuals, (ii) Institutional customers, including hospitals, medical institutions, other laboratories, governmental bodies, municipalities and large corporations, or (iii) Patients who pay directly, as the Company believes this best depicts how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors. The following table summarizes revenue from contracts with customers by payor type for the three and six months ended June 30, 2022 and 2021. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Testing Services by payor Insurance $ 63,790 $ 49,520 $ 274,467 $ 257,078 Institutional customers 61,232 103,602 170,700 255,171 Patients 319 494 442 796 Total Revenue $ 125,341 $ 153,616 $ 445,609 $ 513,045 The insurance revenue category above includes zero and $ 37.1 million for the three months ended June 30, 2022 and 2021, respectively, and $ 106.7 million and $ 149.9 million for the six months ended June 30, 2022 and 2021, respectively, for services related to claims covered by the HRSA COVID-19 Uninsured Program. The HRSA program stopped accepting claims at 11:59 p.m. on March 22, 2022. There was no material variable consideration recognized in the current period that relates to performance obligations that were completed in the prior period. Collection of the Company’s net revenues from insurers is normally a function of providing complete and correct billing information within the various filing deadlines. Provided the Company has billed insurers accurately with complete information prior to the established filing deadline, there has historically been little to no credit risk. If there has been a delay in billing, the Company determines if the amounts in question will likely go past the filing deadline, and if so, the Company will reserve accordingly for the billing. Contract Balances Receivables from contracts with customers - Receivables from contracts with customers are included within trade accounts receivable on the Condensed Consolidated Balance Sheets. Net receivable from Insurance and Institutional customers represented 76 % and 24 %, respectively, as of June 30, 2022. Net receivable from Insurance and Institutional customers represented 47 % and 53 %, respectively, as of December 31, 2021. Contracts assets and liabilities - Contract assets from contracts with customers associated with contract execution and certain costs to fulfill a contract are included in other current assets in the accompanying Condensed Consolidated Balance Sheets. Contract liabilities are recorded when the Company receives payment prior to completing its obligation to transfer goods or services to a customer. Contract liabilities are included in the Condensed Consolidated Balance Sheets. Revenues of $ 4.7 million and $ 1.7 million were recognized for the three months ended June 30, 2022 and 2021, respectively, and $ 14.4 million and $ 25.5 million for the six months were recognized for the six months ended June 30, 2022 and 2021, respectively, related to contract liabilities at the beginning of the respective periods. Reagents and Supplies The Company maintains reagents and other consumables primarily used in sample collections and testing which are valued at the lower of cost or net realizable value. Cost is determined using actual costs on a first-in, first-out basis. The reagents and supplies were included in other current assets in the accompanying Condensed Consolidated Balance Sheets. Customer Deposit Customer deposit in the accompanying Condensed Consolidated Balance Sheets consists primarily of payments received from customers in excess of their outstanding trade accounts receivable balances, and the excess payments will be refunded to the customers or offset against future testing receivables. Business Combination The Company uses the acquisition method of accounting and allocates the fair value of purchase consideration to the assets acquired and liabilities assumed from an acquiree based on their respective fair values as of the acquisition date. The excess of the fair value of purchase consideration over the fair value of these assets acquired and liabilities assumed is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Critical estimates in valuing intangible assets include, but are not limited to, expected future cash flows, which includes consideration of future growth and margins, future changes in technology, expected cost and time to develop in-process research and development, brand awareness and discount rates. Fair value estimates are based on the assumptions that management believes a market participant would use in pricing the asset or liability. Goodwill Goodwill is not amortized but is subject to impairment tests on an annual basis, or more frequently if indicators of potential impairment exist, and goodwill is written down when it is determined to be impaired. The Company typically performs an annual impairment review in the fourth quarter of each fiscal year unless one had been performed previously within the past 12 months and compares the fair value of the reporting unit in which the goodwill resides to its carrying value. Restructuring Costs Restructuring costs represent one-time employee termination benefits provided to employees associated with a newly acquired entity that were involuntarily terminated. A plan of termination was approved and authorized by management in the second quarter of 2022. The plan identified specific employees to be terminated and established terms of benefits those employees would receive upon termination. Total restructuring costs incurred in the three and six months ended June 30, 2022 were $ 2.9 million , and payable balance as of June 30, 2022 was $ 2.7 million, which is included in accrued liabilities in the accompanying Condensed Consolidated Balance Sheets. The plan of termination is expected to be completed by September 2022. There were no such costs prior to the second quarter of 2022. Recent Accounting Pronouncements The Company evaluates all Accounting Standards Updates, or ASUs, issued by the Financial Accounting Standards Board, or FASB, for consideration of their applicability. ASUs not included in the Company’s disclosures were assessed and determined to be either not applicable or are not expected to have a material impact on the Company’s condensed consolidated financial statements. |
Equity and Debt Securities
Equity and Debt Securities | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Equity and Debt Securities | Note 3. Equity and Debt Securities The Company’s equity and debt securities consisted of the following: June 30, 2022 Amortized Unrealized Unrealized Aggregate (in thousands) Equity securities: Long-term Investment in private equity securities $ 15,000 — — 15,000 Total equity securities 15,000 — — 15,000 Available-for-sale debt securities Short-term U.S. government debt securities 142,434 — ( 1,375 ) 141,059 Corporate debt securities 127,706 — ( 1,755 ) 125,951 U.S. treasury bills 59,479 — ( 218 ) 59,261 Money market accounts 44,209 — — 44,209 U.S. agency debt securities 32,507 — ( 448 ) 32,059 Yankee debt securities 11,286 — ( 159 ) 11,127 Municipal bonds 7,228 — ( 63 ) 7,165 Less: Cash equivalents ( 44,209 ) — — ( 44,209 ) Total debt securities due within 1 year 380,640 — ( 4,018 ) 376,622 After 1 year through 5 years U.S. government debt securities 223,050 15 ( 6,551 ) 216,514 Corporate debt securities 137,742 — ( 5,977 ) 131,765 U.S. agency debt securities 52,340 — ( 2,567 ) 49,773 Municipal bonds 11,097 6 ( 208 ) 10,895 Yankee debt securities 754 — ( 80 ) 674 Total debt securities due after 1 year through 5 years 424,983 21 ( 15,383 ) 409,621 After 5 years through 10 years Municipal bonds 6,172 — ( 172 ) 6,000 Redeemable preferred stock investment 20,000 — ( 8,019 ) 11,981 Total debt securities due after 5 years through 10 years 26,172 — ( 8,191 ) 17,981 Total available-for-sale debt securities 831,795 21 ( 27,592 ) 804,224 Total equity and debt securities $ 846,795 $ 21 $ ( 27,592 ) $ 819,224 December 31, 2021 Amortized Unrealized Unrealized Aggregate (in thousands) Equity securities: Short-term Bond funds $ 99,314 $ — $ ( 515 ) $ 98,799 Exchange traded funds 35,174 — ( 174 ) 35,000 Total equity securities 134,488 — ( 689 ) 133,799 Available-for-sale debt securities Short-term Corporate debt securities 92,116 24 ( 148 ) 91,992 Money market accounts 77,067 — — 77,067 U.S. government debt securities 51,318 — ( 81 ) 51,237 Municipal bonds 4,980 — ( 12 ) 4,968 Yankee debt securities 3,615 — ( 6 ) 3,609 Less: Cash equivalents ( 77,067 ) — — ( 77,067 ) Total debt securities due within 1 year 152,029 24 ( 247 ) 151,806 After 1 year through 5 years Corporate debt securities 242,421 29 ( 1,913 ) 240,537 U.S. Government debt securities 147,699 7 ( 786 ) 146,920 U.S. agency debt securities 70,069 — ( 535 ) 69,534 Municipal bonds 11,920 13 ( 11 ) 11,922 Yankee debt securities 8,633 — ( 89 ) 8,544 Total debt securities due after 1 year through 5 years 480,742 49 ( 3,334 ) 477,457 After 5 years through 10 years Municipal bonds 7,633 — ( 43 ) 7,590 Redeemable preferred stock investment 20,000 1,965 — 21,965 Total debt securities due after 5 years through 10 years 27,633 1,965 ( 43 ) 29,555 Total available-for-sale debt securities 660,404 2,038 ( 3,624 ) 658,818 Total equity and debt securities $ 794,892 $ 2,038 $ ( 4,313 ) $ 792,617 Gross unrealized losses on the Company’s equity and debt securities were $ 27.6 million as of June 30, 2022. Gross unrealized losses on the Company’s equity and debt securities were $ 4.3 million as of December 31, 2021. The Company did not recognize any credit losses during the three and six months ended June 30, 2022 and 2021. The Company’s securities of $ 491.5 million are used as collateral for an outstanding margin account borrowing. As of June 30, 2022, the Company had an outstanding borrowing of $ 15.0 million under its margin account. Margin account borrowings were used for the purchase of real property located in El Monte, California in 2020. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 4. Fair Value Measurements The authoritative guidance on fair value measurements establishes a framework with respect to measuring assets and liabilities at fair value on a recurring basis and non-recurring basis. Under the framework, fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as of the measurement date. The framework also establishes a three-tier hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability and are developed based on the best information available in the circumstances. The hierarchy consists of the following three levels: Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2: Inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Inputs are unobservable for the asset or liability. The following tables present information about the Company’s financial assets measured at fair value on a recurring basis, based on the above three-tier fair value hierarchy: June 30, 2022 Total Level 1 Level 2 Level 3 (in thousands) Equity securities, debt securities and cash equivalents: Investment in private equity securities $ 15,000 $ — $ — $ 15,000 U.S. government debt securities 357,573 — 357,573 — Corporate debt securities 257,716 — 257,716 — U.S. agency debt securities 81,832 — 81,832 — Municipal bonds 24,060 — 24,060 — Yankee debt securities 11,801 — 11,801 — U.S. treasury bills 59,261 59,261 — — Money market accounts 44,209 44,209 — — Redeemable preferred stock investment 11,981 — — 11,981 Total equity securities, debt securities and cash equivalents $ 863,433 $ 103,470 $ 732,982 $ 26,981 December 31, 2021 Total Level 1 Level 2 Level 3 (in thousands) Equity securities, debt securities and cash equivalents: Corporate debt securities $ 332,529 $ — $ 332,529 $ — U.S. government debt securities 198,157 — 198,157 — Bond funds 98,799 98,799 — — U.S. agency debt securities 69,534 — 69,534 — Exchange traded funds 35,000 35,000 — — Municipal bonds 24,480 — 24,480 — Yankee debt securities 12,153 — 12,153 — Redeemable preferred stock investment 21,965 — — 21,965 Money market accounts 77,067 77,067 — — Total equity securities, debt securities and cash equivalents $ 869,684 $ 210,866 $ 636,853 $ 21,965 The Company’s Level 1 assets include bond funds, exchange traded funds, U.S. treasury bills, and money market instruments and are valued based upon observable market prices. Level 2 assets consist of U.S. government and U.S. agency debt securities, municipal bonds, corporate debt securities and Yankee debt securities. Level 2 securities are valued based upon observable inputs that include reported trades, broker/dealer quotes, bids and offers. As of June 30, 2022, the Company had $ 15.0 million of investment in private equity securities, which was included in other long-term assets in the accompanying Condensed Consolidated Balance Sheets, and $ 12.0 million of redeemable preferred stock of a private company that were measured using unobservable (Level 3) inputs. The fair values of redeemable preferred stock as of June 30, 2022 and December 31, 2021 were based on the valuation performed by a third-party valuation company utilizing the guideline public company method under market approach and the discounted cash flow method under income approach. For the value of the investment in private equity securities, the Company elected to measure it at cost minus impairment as the private equity securities did not have a readily determinable fair value, and the Company did not believe the investment was impaired as of June 30, 2022. There were no transfers between fair value measurement levels during the three and six months ended June 30, 2022. |
Fixed Assets
Fixed Assets | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | Note 5. Fixed Assets Major classes of fixed assets consisted of the following: June 30, December 31, Useful Lives 2022 2021 (in thousands) Medical lab equipment 1 to 12 Years $ 45,479 $ 35,930 Leasehold improvements Shorter of lease term or estimated useful life 11,867 4,003 Computer hardware 1 to 5 Years 7,163 5,661 Computer software 1 to 5 Years 6,918 1,408 Building 39 Years 6,731 6,731 Aircraft 7 Years 6,503 6,503 Building improvements 6 months to 39 Years 4,830 3,936 Furniture and fixtures 1 to 10 Years 3,901 2,255 Automobile 2 to 7 Years 850 825 Land improvements 5 to 15 Years 558 403 General equipment 3 to 5 Years 44 44 Land 7,500 7,500 Assets not yet placed in service 13,391 6,718 Total 115,735 81,917 Less: Accumulated depreciation ( 29,686 ) ( 19,630 ) Fixed assets, net $ 86,049 $ 62,287 Depreciation expenses on fixed assets totaled $ 6.6 million and $ 2.3 million for the three months ended June 30, 2022 and 2021, respectively, and $ 10.3 million and $ 4.2 million for the six months ended June 30, 2022 and 2021, respectively. |
Other Current Assets
Other Current Assets | 6 Months Ended |
Jun. 30, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Other Current Assets | Note 6. Other Current Assets Other current assets consisted of the following: June 30, December 31, 2022 2021 (in thousands) Reagents and supplies $ 11,942 $ 12,206 Prepaid expenses 9,419 4,244 Marketable securities interest receivable 2,692 2,743 Other receivable 1,334 1,403 Prepaid income taxes 920 1,716 Contract assets 173 237 Total $ 26,480 $ 22,549 Reagents and supplies include reagents and consumables used for COVID-19 testing and genetics testing and collection kits for COVID-19 testing. |
Reporting Segment and Geographi
Reporting Segment and Geographic Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Reporting Segment and Geographic Information | Note 7. Reporting Segment and Geographic Information The Company views its operations and manages its business in one reporting segment. Long-lived assets were primarily located in the United States as of June 30, 2022 and December 31, 2021. Revenue by region during the three and six months ended June 30, 2022 and 2021 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Revenue: United States $ 122,096 $ 149,862 $ 439,286 $ 507,399 Foreign 3,245 3,754 6,323 5,646 Total $ 125,341 $ 153,616 $ 445,609 $ 513,045 |
Debt, Commitments and Contingen
Debt, Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Debt Commitments And Contingencies Disclosure [Abstract] | |
Debt, Commitments and Contingencies | Note 8. Debt, Commitments and Contingencies Debt As of June 30, 2022, the Company had an outstanding borrowing of $ 15.0 million under its margin account with the custodian of the Company’s marketable debt security investment account, Pershing Advisor Solutions, LLC, a BNY Mellon Company. Margin account borrowings were used for the purchase of real property located in El Monte, California in 2020. The securities in the brokerage account were used as collateral for the margin loan. The custodian can issue a margin call at any time. The interest rate on the margin loan was the effective federal funds rate, or EFFR, plus a spread. The EFFR and/or the spread can be changed by BNY Mellon at any time. The interest was 1 % at the time of withdrawal of $ 15.0 million from the margin account, and the interest rate at June 30, 2022 was less than 2 % . The Company did not make any other withdrawals from the margin account, and the outstanding balance is included in the accompanying Condensed Consolidated Balance Sheets. The related interest expenses for the three and six months ended June 30, 2022 were $ 50,000 and $ 79,000 , respectively. The related interest expenses for the three and six months ended June 30, 2021 were $ 29,000 and $ 58,000 , respectively. Notes payable as of June 30, 2022 consisted of $ 3.8 million of notes payable related to an installment sale contract the Company entered in February 2022 for a building and $ 5.3 million of notes payable to Xilong Scientific Co., Ltd, or Xilong Scientific, by Fujian Fujun Gene Biotech Co., Ltd., or FF Gene Biotech. The notes payable related to the installment sale are due in February 2030, and the interest rate is 1.08 %. The current portion and noncurrent portion are $ 461,000 and $ 3.4 million , respectively, and the noncurrent portion is included in the other long-term liabilities in the accompanying Condensed Consolidated Balance Sheet. The notes payable to Xilong Scientific are due on December 31, 2022, and the interest rate on the loan is 4.97 %. The related interest expenses for the three and six months ended June 30, 2022 were $ 77,000 and $ 156,000 , respectively, and there were no related interest expenses for the three and six months ended June 30, 2021 as the Company did no t have notes payable to Xilong Scientific until the second quarter of 2021 and did no t have installment sale contract in 2021. Operating Leases See Note 9, Leases, for further information. Purchase Obligations As of June 30, 2022, the Company had non-cancelable purchase obligations of $ 22.8 million , of which, $ 7.7 million for reagents and other supplies, $ 6.6 million for services, $ 995,000 for software, and $ 732,000 for medical lab equipment are payable within twelve months, and $ 6.7 million for services is payable within the next twenty-four months. Contingencies From time to time, the Company may be subject to legal proceedings and claims arising in the ordinary course of business. In the opinion of management, the outcome of these matters would not have a material effect on the Company’s condensed consolidated financial position, results of operations or cash flows. The Company has received a Civil Investigative Demand, or CID, issued by the U.S. Department of Justice pursuant to the False Claims Act related to its investigation of allegations of medically unnecessary laboratory testing, improper billing for laboratory testing, and remuneration received or provided in violation of the Anti-Kickback Statute and the Stark Law. This CID requests information and records relating to certain of the Company’s customers named in the CID, which represent a small portion of the Company’s revenues. The Company is fully cooperating with the U.S. Department of Justice to promptly respond to the requests for information in this CID, and does not presently expect this CID or resulting investigation to have a material adverse impact. However, the Company cannot predict when the investigation will be resolved, the outcome of the investigation or its potential impact, which may ultimately be greater than the Company currently expects. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Leases | Note 9. Leases Lessee The Company is party as a lessee to various non-cancelable operating leases with varying terms through March 2028 primarily for laboratory and office space and equipment. The Company has options to renew some of these leases after their expirations. On a lease-by-lease basis, the Company considers such options, which may be elected at the Company’s sole discretion, in determining the lease term. The Company also has three finance leases for lab equipment through December 2026, one of which was acquired in a recent business combination. The Company retained acquirees’ classification of its leases. The Company does not have any leases with variable lease payments. The Company’s operating lease agreements do not contain any residual value guarantees, material restrictive covenants, bargain purchase options or asset retirement obligations. The Company’s headquarters are located in Temple City, California, which is comprised of various corporate offices and a laboratory certified under the Clinical Laboratory Improvement Amendments of 1988, or CLIA, accredited by the College of American Pathologists, or CAP, and licensed by the State of California Department of Public Health. Other CLIA-certified laboratories are located in Houston, Texas; Alpharetta, Georgia; Phoenix, Arizona; New York, New York; Irving, Texas; and Needham, Massachusetts. Additional offices are located in Atlanta, Georgia and are used for certain report generation functions. The operating and finance lease right-of-use asset, short-term lease liabilities, and long-term lease liabilities as of June 30, 2022 and December 31, 2021 were as follows: June 30, December 31, 2022 2021 (in thousands) Operating lease ROU asset, net $ 18,034 $ 7,141 Operating lease liabilities, short term $ 6,216 $ 1,842 Operating lease liabilities, long term $ 11,892 $ 5,344 Finance lease ROU asset, net $ 2,671 $ 1,735 Finance lease liabilities, short term $ 741 $ 332 Finance lease liabilities, long term $ 1,938 $ 1,398 The following was operating and finance lease expense: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 (in thousands) Operating lease cost $ 1,366 $ 232 $ 1,904 $ 301 Finance lease cost: Amortization of ROU assets 169 — 265 — Interest on lease liabilities 21 — 35 — Short-term lease cost 834 61 931 192 Total lease cost $ 2,390 $ 293 $ 3,135 $ 493 Supplemental information related to operating leases and finance lease was the following: June 30, 2022 Weighted average remaining lease term - operating leases 3.54 years Weighted average discount rate - operating leases 3.81 % Weighted average remaining lease term -finance lease 3.71 years Weighted average discount rate - finance lease 3.61 % The following is a maturity analysis of operating and finance lease liabilities using undiscounted cash flows on an annual basis with renewal periods included: Operating Leases Finance Lease (in thousands) Year Ending December 31, 2022 (remaining 6 months) $ 3,451 $ 412 2023 6,613 825 2024 4,093 818 2025 2,124 440 2026 1,523 366 2027 1,360 — Thereafter 217 — Total lease payments 19,381 2,861 Less imputed interest ( 1,273 ) ( 182 ) Total $ 18,108 $ 2,679 Lessor The Company leases out space in buildings it owns and leases to third-party tenants under noncancelable operating leases. As of June 30, 2022, the remaining lease terms left range from 6 months to 38 months, including renewal options and may include rent escalation clauses. Lease income primarily represents fixed lease payments from tenants recognized on a straight-line basis over the application lease term. Variable lease income represents tenant payments for real estate taxes, insurance and maintenance. The lease income was included in interest and other income, net, in the accompanying Condensed Consolidated Statements of Income. Total lease income was as follows: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 (in thousands) Lease income $ 84 $ 81 $ 181 $ 237 Variable lease income 11 4 12 5 Total lease income $ 95 $ 85 $ 193 $ 242 Future fixed lease payments from tenants for all noncancelable operating leases as of June 30, 2022 are as follows: Lease Payments from Tenants (in thousands) Year Ending December 31, 2022 (remaining 6 months) $ 164 2023 264 2024 180 2025 120 Total $ 728 |
Equity-Based Compensation
Equity-Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Equity-Based Compensation | Note 10. Equity-Based Compensation The Company has included equity-based compensation expense as part of cost of revenue and operating expenses in the accompanying Condensed Consolidated Statements of Income as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Cost of revenue $ 2,243 $ 692 $ 3,708 $ 1,366 Research and development 2,502 1,481 4,423 2,704 Selling and marketing 1,080 620 1,905 1,046 General and administrative 2,205 733 3,610 1,372 Total $ 8,030 $ 3,526 $ 13,646 $ 6,488 |
Provision for Income Taxes
Provision for Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | Note 11. Provision for Income Taxes The effective tax rate used for interim periods is the estimated annual effective consolidated tax rate, based on the current estimate of full year results, except that taxes related to specific events, if any, are recorded in the interim period in which they occur. The annual effective tax rate is based upon several significant estimates and judgments, including the estimated annual pre-tax income of the Company in each tax jurisdiction in which it operates, and the development of tax planning strategies during the year. In addition, the Company’s tax expense can be impacted by changes in tax rates or laws and other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions. The Company recorded consolidated provision for income taxes of $ 2.7 million and $ 51.1 million for the three and six months ended June 30, 2022, respectively, compared with $ 23.6 million and $ 90.1 million for the three and six months ended June 30, 2021, respectively. The Company’s effective tax rates were 19 % and 24 % for the three and six months ended June 30, 2022, respectively, compared with 24 % and 25 % or the three and six months ended June 30, 2021, respectively. The decrease in the effective tax rate for the three and six months ended June 30, 2022, relative to 2021, was primarily attributable to international restructuring. The Company is not currently under examination by any major income tax jurisdiction. During 2022, the statutes of limitations will lapse on the Company's 2018 federal tax year and certain 2017 and 2018 state tax years. The Company does not believe the federal or state statute lapses or any other event will significantly impact the balance of unrecognized tax benefits in the next twelve months. The net balance of unrecognized tax benefits was not material to the interim financial statements for the three and six months ended June 30, 2022 and 2021. |
Income per Share
Income per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Income per Share | Note 12. Income per Share The following table presents the calculation of basic and diluted income per share for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands, except per share data) Net income attributable to Fulgent $ 11,537 $ 79,812 $ 165,516 $ 280,503 Weighted-average common shares—outstanding, basic 30,362 29,150 30,298 28,991 Weighted-average common shares—outstanding, diluted 31,189 30,830 31,225 30,809 Net income per common share, basic $ 0.38 $ 2.74 $ 5.46 $ 9.68 Net income per common share, diluted $ 0.37 $ 2.59 $ 5.30 $ 9.10 The following securities have been excluded from the calculation of diluted income per share because their effect would have been anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Options 1 2 1 5 Restricted Stock Units 858 107 379 71 The anti-dilutive shares described above were calculated using the treasury stock method. |
Related Parties
Related Parties | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Parties | Note 13. Related Parties Linda Marsh, who is a member of the Company’s board of directors, is currently the Senior Executive Vice President of AHMC Healthcare Inc., or AHMC. The Company performs genetic testing and other testing services, on an arms-length basis, for AHMC, and the Company recognized $ 253,000 and $ 1.0 million in revenue from AHMC in the three and six months ended June 30, 2022, respectively. The Company recognized $ 738,000 and $ 1.9 million in revenue in the three and six months ended June 30, 2021, respectively. As of June 30, 2022 and December 31, 2021, $ 220,000 and $ 556,000 , respectively, was owed to the Company by AHMC, which is included in trade accounts receivable, net, in the accompanying Condensed Consolidated Balance Sheets, in connection with this relationship. The Company and Fulgent Pharma LLC, the Company’s former subsidiary, are party to shared services arrangements where research and development, administrative services and office space and equipment are provided between the companies, on an arms-length basis. Ming Hsieh is the Manager and a member of Fulgent Pharma LLC. The cost of research and development services rendered by Fulgent Pharma LLC for the Company was no t significant in the three and six months ended June 30, 2022. During the three and six months ended June 30, 2021, the cost of research and development services rendered by Fulgent Pharma LLC for the Company was $ 97,000 and $ 205,000 , respectively. Amounts for services performed by the Company for Fulgent Pharma LLC were no t significant during the three and six months ended June 30, 2022 and 2021. As of June 30, 2022, $ 54,000 was owed to the Company by Fulgent Pharma LLC, which was included in other current assets in the accompanying Condensed Consolidated Balance Sheets, in connection with these relationships. As of December 31, 2021, $ 679,000 , was owed to Fulgent Pharma LLC by the Company, which was included in other current liabilities in the accompanying Condensed Consolidated Balance Sheets, in connection with these relationships. The Chief Executive Officer and Chairman of the Company’s board of directors, Ming Hsieh, is the owner of PTJ Associates Inc., or PTJ. PTJ provides flight services to the Company on an arms-length basis. During the three and six months ended June 30, 2022, the Company incurred $ 99,000 and $ 235,000 , respectively, in expenses for flights between California and Texas to transport employees and supplies. Such expenses were no t significant in the three and six months ended June 30, 2021. As of June 30, 2022 and December 31, 2021, $ 67,000 and zero , respectively, was owed to PTJ by the Company, which was included in accounts payable in the accompanying Condensed Consolidated Balance Sheets, in connection with this relationship. Ming Hsieh is also on the board of directors and a 20 % owner of ANP Technologies, Inc., or ANP. The Company purchased COVID-19 antigen rapid tests kits from ANP. During the three and six months ended June 30, 2022, the Company purchased a total of $ 90,000 and $ 160,000 of COVID-19 antigen rapid tests kits, respectively. The Company did no t incur such expense in the three and six months ended June 30, 2021. As of June 30, 2022 and December 31, 2021, zero was owed to ANP by the Company in connection with this relationship. |
Goodwill and Acquisition-Relate
Goodwill and Acquisition-Related Intangibles | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquisition-Related Intangibles | Note 14. Goodwill and Acquisition-Related Intangibles Summaries of goodwill and intangibles balances assets as of June 30, 2022 and December 31, 2021 were as follows: June 30, December 31, Weighted-Average Amortization Period 2022 2021 (in thousands) Goodwill $ 121,354 $ 50,897 Royalty-free technology 10 Years $ 5,524 $ 5,803 Less: accumulated amortization ( 645 ) ( 387 ) Royalty-free technology, net 4,879 5,416 Customer relationships 13 Years 82,284 28,845 Less: accumulated amortization ( 2,999 ) ( 1,125 ) Customer relationships, net 79,285 27,720 Trade name 8 Years 3,790 1,090 Less: accumulated amortization ( 164 ) ( 45 ) Trade name, net 3,626 1,045 In-place lease intangible assets 5 Years 360 — Less: accumulated amortization — — In-place lease intangible assets, net 360 — Laboratory information system platform 5 Years 1,860 1,860 Less: accumulated amortization ( 341 ) ( 155 ) Laboratory information system platform, net 1,519 1,705 Purchased patent 10 Years 30 31 Less: accumulated amortization ( 4 ) ( 3 ) Purchased patent, net 26 28 Total intangible assets, net $ 89,695 $ 35,914 During the three months ended June 30, 2022, the Company recorded $ 71.6 million of goodwill and $ 56.6 million of intangibles attributable to the acquisition of Inform Diagnostics. See Note 15, Business Combinations, to the Company's condensed consolidated financial statements. Based on the carrying value of intangible assets recorded as of June 30, 2022, and assuming no subsequent impairment of the underlying assets, the annual amortization expense for intangible assets is expected to be as follows: Amounts (in thousands) Year Ending December 31, 2022 (remaining 6 months) 3,959 2023 7,848 2024 7,848 2025 7,848 2026 7,534 2027 7,221 Thereafter 47,437 Total $ 89,695 |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2022 | |
Business Combinations [Abstract] | |
Business Combinations | Note 15. Business Combinations Inform Diagnostics On April 26, 2022, the Company completed the acquisition of 100 % of the outstanding equity of Symphony Buyer, Inc., or Inform Diagnostics, a leading national independent pathology laboratory based in Irving, Texas. Under the terms of the Agreement and Plan of Merger, dated April 16, 2022, or the Merger Agreement, the total purchase price payable to the securityholders of Symphony Buyer, Inc. was approximately $ 170 million, as adjusted for closing cash, closing indebtedness, closing working capital, closing transaction expenses and other transaction matters. With the addition of Inform Diagnostics, the Company will further expand the Company’s genomic testing footprint and extend its test menu into breast pathology, gastrointestinal pathology, dermatopathology, urologic pathology, neuropathology, and hematopathology. The financial results of Inform Diagnostics are included in the condensed consolidated financial statements from the date of acquisition. The Company allocated the purchase price to tangible and identified intangible assets acquired and liabilities assumed based on estimated fair values. As additional information becomes available, the Company may further update the preliminary purchase price allocation during the remainder of the measurement period (up to one year from the acquisition date). The following tables summarizes the consideration paid and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date: Amounts (in thousands) Considerations Cash, net of cash received $ 137,755 Recognized amounts of identifiable assets acquired and liabilities assumed Net working capital $ ( 15,024 ) Fixed assets 20,967 ROU assets - operating 12,653 ROU assets - finance 1,183 Deferred tax assets 3,446 Other long-term assets 4,711 Identifiable intangible assets 56,560 Operating lease liabilities ( 12,653 ) Finance lease liabilities ( 1,183 ) Income tax payable ( 40 ) Other long-term liabilities ( 4,449 ) Recognized amounts of identifiable assets acquired and liabilities assumed, net 66,171 Goodwill 71,584 Total $ 137,755 The goodwill of $ 71.6 million arising from the acquisition is attributed to the expected synergies, assembled workforce, other benefits that will be potentially generated from the combination and deferred tax. The goodwill recognized is not deductible for tax purposes. The identified intangible assets acquired consisted of $ 53.5 million customer relationships with an estimated amortization life of 14 years, $ 2.7 million trade name with an estimated amortization life of 7 years, and $ 360,000 in-place lease intangible asset to be amortized over the remaining lease term of 5 years. The fair value of the customer relationship was estimated using the Multiperiod Excess Earnings Method, or MPEEM, of the income approach. Under the MPEEM, an intangible asset’s fair value is equal to the present value of the incremental after-tax cash flows attributable only to the subject intangible asset after deducting contributory asset charges. The incremental after-tax cash flows attributable to the customer relationships are then discounted to their present value at a risk-adjusted rate of return. The fair value of the trade name was estimated using the relief from royalty, or RFR, method. The RFR method estimates the portion of the Company's earnings attributable to an intangible asset based on the royalty rate the Company would have paid for the use of the asset if it did not own it. The fair value of in-place lease intangible asset was estimated using the discounted cash flow under the income approach. The useful lives of the intangible assets for amortization purposes were determined by considering the period of expected cash flows used to measure the fair values of the intangible assets adjusted as appropriate for entity-specific factors including legal, regulatory, contractual, competitive, economic and other factors that may limit the useful life. The customer relationships and trade name are amortized on a straight-line basis over their estimated useful lives. Revenue and operating loss from the Inform Diagnostics acquisition since the acquisition date are $ 23.7 million and $ 7.1 million, respectively, which are included in the accompanying Condensed Consolidated Statements of Income. The transaction costs associated with the acquisition of Inform Diagnostics consisted primarily of legal, regulatory and financial advisory fees of approximately $ 5.2 million and $ 6.4 million for the three and six months ended June 30, 2022, respectively. These transaction costs were expensed as incurred as selling, general and administrative expense in the respective periods. Unaudited Pro Forma Financial Information The following unaudited pro forma financial information summarizes the combined results of operations of Fulgent and Inform Diagnostics as if the companies had been combined as of the beginning of 2021. The pro forma financial information has been adjusted for the following: Acquisition-related costs - Acquisition-related costs incurred by both Fulgent and Inform Diagnostics were excluded from the net income attributable to Fulgent, and total costs were $ 8.2 million and $ 9.5 million for the three and six months ended June 30, 2022, respectively. Other adjustments to the net income attributable to Fulgent were $ 172,000 and $ 690,000 for three and six months ended June 30, 2022, respectively, and $ 517,000 and $ 1.0 million for the three and six months ended June 30, 2021, respectively. Other adjustments to revenue were $ 196,000 and $ 962,000 for the three and six months ended June 30, 2022, respectively, and $ 1.0 million and $ 1.7 million were added back to revenue for the three and six months ended June 30, 2021, respectively. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Revenue $ 133,720 $ 193,156 $ 486,027 $ 589,851 Net income attributable to Fulgent $ 10,461 $ 83,271 $ 162,317 $ 282,703 Basic earnings per common share attributable to Fulgent $ 0.34 $ 2.86 $ 5.36 $ 9.75 Diluted earnings per common share attributable to Fulgent $ 0.34 $ 2.70 $ 5.20 $ 9.18 |
Stock Repurchase Program
Stock Repurchase Program | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stock Repurchase Program | Note 16. Stock Repurchase Program In March 2022, the Company's Board authorized a $ 250.0 million stock repurchase program. Under the stock repurchase program, the Company may repurchase shares from time to time in the open market or in privately negotiated transactions. The stock repurchase program has no expiration from the date of authorization. During the three months ended June 30, 2022, the Company repurchased 215,000 shares of its common stock at an aggregate cost of $ 10.6 million under the stock repurchase program. As of June 30, 2022, a total of approximately $ 239.4 million remained available for future repurchases of its common stock under the stock repurchase program. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting periods. These estimates, judgments and assumptions are based on historical data and experience available at the date of the accompanying condensed consolidated financial statements, as well as various other factors management believes to be reasonable under the circumstances, including but not limited to the potential impacts arising from the recent global pandemic related to COVID-19. As the extent and duration of the impacts from COVID-19 remain unclear, the Company’s estimates and assumptions may evolve as conditions change. Actual results could differ significantly from these estimates. On an on-going basis, management evaluates its estimates, primarily those related to: (i) revenue recognition criteria; (ii) accounts receivable and allowances for credit losses; (iii) the useful lives of fixed assets and intangible assets; (iv) estimates of tax liabilities; and (v) valuation of intangible assets and goodwill. |
Marketable Securities | Marketable Securities All marketable debt securities, which consist of corporate debt securities, municipal bonds, U.S. government and agency debt securities, U.S. treasury bills, and Yankee debt securities issued by foreign governments or entities and denominated in U.S. dollars have been classified as “available-for-sale,” and are carried at fair value. Net unrealized gains and losses, net of any related tax effects, are excluded from earnings and are included in other comprehensive income (loss) and reported as a separate component of stockholders’ equity until realized. Realized gains and losses on marketable debt securities are included in interest and other income, net, in the accompanying Condensed Consolidated Statements of Income. The cost of any marketable debt securities sold is based on the specific-identification method. The amortized cost of marketable debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Interest on marketable debt securities is included in interest and other income, net. In accordance with the Company’s investment policy, management invests to diversify credit risk and only invests in securities with high credit quality, including U.S. government securities. The Company’s investments in marketable equity securities are measured at fair value with the related gains and losses, realized and unrealized, recognized in interest and other income, net, in the accompanying Condensed Consolidated Statements of Income. The cost of any marketable equity securities sold is based on the specific-identification method. For available-for-sale debt securities, in an unrealized loss, the Company determines whether a credit loss exists. The credit loss is estimated by considering available information relevant to the collectability of the security and information about past events, current conditions, and reasonable and supportable forecasts. The Company compares the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows to be collected is less than the amortized basis of the security, a credit loss exists, and any credit loss is recorded as a charge to interest and other income, net, not to exceed the amount of the unrealized loss. If the Company has an intent to sell, or if it is more likely than not that the Company will be required to sell a debt security in an unrealized loss position before recovery of its amortized cost basis, the Company will write down the security to its fair value and record the corresponding charge as a component of interest and other income, net. |
Trade Accounts Receivable and Allowance for Credit Losses | Trade Accounts Receivable and Allowance for Credit Losses Trade accounts receivable are stated at the amount the Company expects to collect. The Company maintains an allowance for credit losses for expected uncollectible trade accounts receivable, which is recorded as an offset to trade accounts receivable, and changes in allowance for credit losses are classified as a general and administrative expense in the accompanying Condensed Consolidated Statements of Income. The Company assesses collectability by reviewing trade accounts receivable on a collective basis where similar risk characteristics exist and on an individual basis when it identifies specific customers that have deterioration in credit quality such that they may no longer share similar risk characteristics with the other receivables. In determining the amount of the allowance for credit losses, the Company uses a probability-of-default and loss given default model, which allows the ability to define a point of default and measure credit losses for receivables that have reached the point of default for purposes of calculating the allowance for credit losses. Loss given default represents the likelihood that a receivable that has reached the point of default will not be collected in full. The Company updates its probability-of-default and loss given default factors annually to incorporate the most recent historical data and adjusts the quantitative portion of the reserve through its qualitative reserve overlay. The Company looks at qualitative factors such as general economic conditions in determining expected credit losses. During the three and six months ended June 30, 2022, the Company recorded $ 7.2 million and $ 18.7 million of provision for credit losses for trade accounts receivable, respectively. During the three and six months ended June 30, 2021, the Company recorded $ 2.2 million and $ 3.3 million of provision for credit losses for trade accounts receivable, respectively. |
Redeemable Preferred Stock Investment | Redeemable Preferred Stock Investment The redeemable preferred stock investment of $ 12.0 million as of June 30, 2022 represents the fair value of redeemable preferred stock of a private company, that the Company purchased in July 2021. The investment is classified as available-for-sale debt securities. The fair value of available-for-sale debt security is included in the Consolidated Statement of Balance Sheets. Unrealized loss of $ 8.0 million is excluded from earnings and reported in other comprehensive income (loss) as of June 30, 2022. Since the Company intends on holding the preferred stock, and the preferred stock is not redeemable until July 2027 , the investment is recorded as a long-term investment. |
Foreign Currency Translation and Foreign Currency Transactions | Foreign Currency Translation and Foreign Currency Transactions The Company translates the assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in foreign currency translation included in accumulated other comprehensive income (loss) in the accompanying Condensed Consolidated Statements of Stockholders’ Equity. Loss from these translations were $ 1.9 million and $ 1.8 million in the three and six months ended June 30, 2022, respectively. Gain from these translations were not significant in the three and six months ended June 30, 2021. The Company and its subsidiaries that use the U.S. dollar as their functional currency remeasure monetary assets and liabilities at exchange rates in effect at the end of each period, whereas reagents and supplies, property and nonmonetary assets and liabilities are measured at historical rates. Losses from these remeasurements were not significant in the three and six months ended June 30, 2022 and 2021. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) consists of net unrealized gain or loss on available-for-sale debt securities, net of tax, and foreign currency translation adjustments from the Company's subsidiaries not using the U.S. dollar as their fun ctional currency. Reclassifications from other comprehensive income (loss) to net earnings were not significant in the three and six months ended June 30, 2022 and 2021. The tax effects related to net unrealized loss on available-for-sale debt securities were $ 1.3 million and $ 5.8 million in the three and six months ended June 30, 2022, respectively. The tax effects were no t significant in the three and six months ended June 30, 2021 . |
Leases | Leases The Company determines if an arrangement is a lease at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether the Company obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. Operating and finance lease right-of-use assets, or ROU assets, short-term lease liabilities, and long-term lease liabilities are included in other long-term assets, accrued liabilities, and other long-term liabilities, respectively, in the accompanying Condensed Consolidated Balance Sheets. Lease ROU assets represent the Company’s right to use an underlying asset for the lease term. Lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term, including options to extend the lease when it is reasonably certain that the Company will exercise that option. The Company uses its incremental borrowing rate based on the information available at the commencement date, including inquiries with its bank, in determining the present value of lease payments since its leases do not provide an implicit rate. Lease ROU assets consist of initial measurement of lease liabilities, any lease payments made to lessor on or before the lease commencement date, minus any lease incentive received, and any initial direct costs incurred by the Company. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term. For finance lease, ROU assets are amortized on a straight-line basis from the commencement date to the earlier of the end of useful life of the ROU assets or the end of the lease term. Amortization of ROU assets and interest on the lease liability for finance leases are included as charges to the accompanying Condensed Consolidated Statements of Income. Lease ROU assets and liabilities arising from business combinations are recognized and measured at the acquisition dates as if an acquired lease were a new lease at the date of acquisition using the Company’s incremental borrowing rate unless the discount rate is implicit in the lease. The Company elects to not to recognize assets or liabilities as of the acquisition dates for leases that, on the acquisition dates, have a remaining lease term of 12 months or less. The Company also retains the acquirees’ classification of the leases if there are no modifications as part of the business combinations. The Company leases and subleases out space in buildings it owns or leases to third-party tenants or subtenants under noncancelable operating leases. The Company recognizes lease payments as income over the lease terms on a straight-line basis and recognizes variable lease payments as income in the period in which the changes in facts and circumstances on which the variable lease payments are based occur. The net rental income is included in the interest and other income, net, in the accompanying Condensed Consolidated Statement of Income. |
Concentration of Customers | Concentration of Customers In certain periods, a small number of customers has accounted for a significant portion of the Company’s revenue. After aggregating customers that are under common control or affiliation, two customers contributed 15 % and 12 % of the Company's revenue for the three months ended June 30, 2022, respectively, and one customer contributed 23 % of the Company's revenue for the six months ended June 30, 2022. Two customers contributed 20 % and 16 % of the Company’s revenue for the three months ended June 30, 2021, respectively, and two customers contributed 24 % and 11 % of the Company’s revenue for the six months ended June 30, 2021, respectively. No customer comprised 10 % or more of total accounts receivable as of June 30, 2022 and December 31, 2021. |
Revenue from Contracts with Customers | Disaggregation of Revenue The Company classifies its customers into three payor types: (i) Insurance, including claim reimbursement from the U.S. Health Resources and Services Administration, or H RSA, for uninsured individuals, (ii) Institutional customers, including hospitals, medical institutions, other laboratories, governmental bodies, municipalities and large corporations, or (iii) Patients who pay directly, as the Company believes this best depicts how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors. The following table summarizes revenue from contracts with customers by payor type for the three and six months ended June 30, 2022 and 2021. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Testing Services by payor Insurance $ 63,790 $ 49,520 $ 274,467 $ 257,078 Institutional customers 61,232 103,602 170,700 255,171 Patients 319 494 442 796 Total Revenue $ 125,341 $ 153,616 $ 445,609 $ 513,045 The insurance revenue category above includes zero and $ 37.1 million for the three months ended June 30, 2022 and 2021, respectively, and $ 106.7 million and $ 149.9 million for the six months ended June 30, 2022 and 2021, respectively, for services related to claims covered by the HRSA COVID-19 Uninsured Program. The HRSA program stopped accepting claims at 11:59 p.m. on March 22, 2022. There was no material variable consideration recognized in the current period that relates to performance obligations that were completed in the prior period. Collection of the Company’s net revenues from insurers is normally a function of providing complete and correct billing information within the various filing deadlines. Provided the Company has billed insurers accurately with complete information prior to the established filing deadline, there has historically been little to no credit risk. If there has been a delay in billing, the Company determines if the amounts in question will likely go past the filing deadline, and if so, the Company will reserve accordingly for the billing. Contract Balances Receivables from contracts with customers - Receivables from contracts with customers are included within trade accounts receivable on the Condensed Consolidated Balance Sheets. Net receivable from Insurance and Institutional customers represented 76 % and 24 %, respectively, as of June 30, 2022. Net receivable from Insurance and Institutional customers represented 47 % and 53 %, respectively, as of December 31, 2021. Contracts assets and liabilities - Contract assets from contracts with customers associated with contract execution and certain costs to fulfill a contract are included in other current assets in the accompanying Condensed Consolidated Balance Sheets. Contract liabilities are recorded when the Company receives payment prior to completing its obligation to transfer goods or services to a customer. Contract liabilities are included in the Condensed Consolidated Balance Sheets. Revenues of $ 4.7 million and $ 1.7 million were recognized for the three months ended June 30, 2022 and 2021, respectively, and $ 14.4 million and $ 25.5 million for the six months were recognized for the six months ended June 30, 2022 and 2021, respectively, related to contract liabilities at the beginning of the respective periods. |
Reagents and Supplies | Reagents and Supplies The Company maintains reagents and other consumables primarily used in sample collections and testing which are valued at the lower of cost or net realizable value. Cost is determined using actual costs on a first-in, first-out basis. The reagents and supplies were included in other current assets in the accompanying Condensed Consolidated Balance Sheets. |
Customer Deposit | Customer Deposit Customer deposit in the accompanying Condensed Consolidated Balance Sheets consists primarily of payments received from customers in excess of their outstanding trade accounts receivable balances, and the excess payments will be refunded to the customers or offset against future testing receivables. |
Business Combination | Business Combination The Company uses the acquisition method of accounting and allocates the fair value of purchase consideration to the assets acquired and liabilities assumed from an acquiree based on their respective fair values as of the acquisition date. The excess of the fair value of purchase consideration over the fair value of these assets acquired and liabilities assumed is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Critical estimates in valuing intangible assets include, but are not limited to, expected future cash flows, which includes consideration of future growth and margins, future changes in technology, expected cost and time to develop in-process research and development, brand awareness and discount rates. Fair value estimates are based on the assumptions that management believes a market participant would use in pricing the asset or liability. |
Goodwill | Goodwill Goodwill is not amortized but is subject to impairment tests on an annual basis, or more frequently if indicators of potential impairment exist, and goodwill is written down when it is determined to be impaired. The Company typically performs an annual impairment review in the fourth quarter of each fiscal year unless one had been performed previously within the past 12 months and compares the fair value of the reporting unit in which the goodwill resides to its carrying value. |
Restructuring Costs | Restructuring Costs Restructuring costs represent one-time employee termination benefits provided to employees associated with a newly acquired entity that were involuntarily terminated. A plan of termination was approved and authorized by management in the second quarter of 2022. The plan identified specific employees to be terminated and established terms of benefits those employees would receive upon termination. Total restructuring costs incurred in the three and six months ended June 30, 2022 were $ 2.9 million , and payable balance as of June 30, 2022 was $ 2.7 million, which is included in accrued liabilities in the accompanying Condensed Consolidated Balance Sheets. The plan of termination is expected to be completed by September 2022. There were no such costs prior to the second quarter of 2022. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company evaluates all Accounting Standards Updates, or ASUs, issued by the Financial Accounting Standards Board, or FASB, for consideration of their applicability. ASUs not included in the Company’s disclosures were assessed and determined to be either not applicable or are not expected to have a material impact on the Company’s condensed consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Standards Update 2014-09 | |
Summary of Revenue from Contracts with Customers by Payor Type | The following table summarizes revenue from contracts with customers by payor type for the three and six months ended June 30, 2022 and 2021. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Testing Services by payor Insurance $ 63,790 $ 49,520 $ 274,467 $ 257,078 Institutional customers 61,232 103,602 170,700 255,171 Patients 319 494 442 796 Total Revenue $ 125,341 $ 153,616 $ 445,609 $ 513,045 |
Equity and Debt Securities (Tab
Equity and Debt Securities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Equity and Debt Securities | The Company’s equity and debt securities consisted of the following: June 30, 2022 Amortized Unrealized Unrealized Aggregate (in thousands) Equity securities: Long-term Investment in private equity securities $ 15,000 — — 15,000 Total equity securities 15,000 — — 15,000 Available-for-sale debt securities Short-term U.S. government debt securities 142,434 — ( 1,375 ) 141,059 Corporate debt securities 127,706 — ( 1,755 ) 125,951 U.S. treasury bills 59,479 — ( 218 ) 59,261 Money market accounts 44,209 — — 44,209 U.S. agency debt securities 32,507 — ( 448 ) 32,059 Yankee debt securities 11,286 — ( 159 ) 11,127 Municipal bonds 7,228 — ( 63 ) 7,165 Less: Cash equivalents ( 44,209 ) — — ( 44,209 ) Total debt securities due within 1 year 380,640 — ( 4,018 ) 376,622 After 1 year through 5 years U.S. government debt securities 223,050 15 ( 6,551 ) 216,514 Corporate debt securities 137,742 — ( 5,977 ) 131,765 U.S. agency debt securities 52,340 — ( 2,567 ) 49,773 Municipal bonds 11,097 6 ( 208 ) 10,895 Yankee debt securities 754 — ( 80 ) 674 Total debt securities due after 1 year through 5 years 424,983 21 ( 15,383 ) 409,621 After 5 years through 10 years Municipal bonds 6,172 — ( 172 ) 6,000 Redeemable preferred stock investment 20,000 — ( 8,019 ) 11,981 Total debt securities due after 5 years through 10 years 26,172 — ( 8,191 ) 17,981 Total available-for-sale debt securities 831,795 21 ( 27,592 ) 804,224 Total equity and debt securities $ 846,795 $ 21 $ ( 27,592 ) $ 819,224 December 31, 2021 Amortized Unrealized Unrealized Aggregate (in thousands) Equity securities: Short-term Bond funds $ 99,314 $ — $ ( 515 ) $ 98,799 Exchange traded funds 35,174 — ( 174 ) 35,000 Total equity securities 134,488 — ( 689 ) 133,799 Available-for-sale debt securities Short-term Corporate debt securities 92,116 24 ( 148 ) 91,992 Money market accounts 77,067 — — 77,067 U.S. government debt securities 51,318 — ( 81 ) 51,237 Municipal bonds 4,980 — ( 12 ) 4,968 Yankee debt securities 3,615 — ( 6 ) 3,609 Less: Cash equivalents ( 77,067 ) — — ( 77,067 ) Total debt securities due within 1 year 152,029 24 ( 247 ) 151,806 After 1 year through 5 years Corporate debt securities 242,421 29 ( 1,913 ) 240,537 U.S. Government debt securities 147,699 7 ( 786 ) 146,920 U.S. agency debt securities 70,069 — ( 535 ) 69,534 Municipal bonds 11,920 13 ( 11 ) 11,922 Yankee debt securities 8,633 — ( 89 ) 8,544 Total debt securities due after 1 year through 5 years 480,742 49 ( 3,334 ) 477,457 After 5 years through 10 years Municipal bonds 7,633 — ( 43 ) 7,590 Redeemable preferred stock investment 20,000 1,965 — 21,965 Total debt securities due after 5 years through 10 years 27,633 1,965 ( 43 ) 29,555 Total available-for-sale debt securities 660,404 2,038 ( 3,624 ) 658,818 Total equity and debt securities $ 794,892 $ 2,038 $ ( 4,313 ) $ 792,617 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Information about Financial Assets Measured at Fair Value on Recurring Basis Based on Three-Tier Fair Value Hierarchy | The following tables present information about the Company’s financial assets measured at fair value on a recurring basis, based on the above three-tier fair value hierarchy: June 30, 2022 Total Level 1 Level 2 Level 3 (in thousands) Equity securities, debt securities and cash equivalents: Investment in private equity securities $ 15,000 $ — $ — $ 15,000 U.S. government debt securities 357,573 — 357,573 — Corporate debt securities 257,716 — 257,716 — U.S. agency debt securities 81,832 — 81,832 — Municipal bonds 24,060 — 24,060 — Yankee debt securities 11,801 — 11,801 — U.S. treasury bills 59,261 59,261 — — Money market accounts 44,209 44,209 — — Redeemable preferred stock investment 11,981 — — 11,981 Total equity securities, debt securities and cash equivalents $ 863,433 $ 103,470 $ 732,982 $ 26,981 December 31, 2021 Total Level 1 Level 2 Level 3 (in thousands) Equity securities, debt securities and cash equivalents: Corporate debt securities $ 332,529 $ — $ 332,529 $ — U.S. government debt securities 198,157 — 198,157 — Bond funds 98,799 98,799 — — U.S. agency debt securities 69,534 — 69,534 — Exchange traded funds 35,000 35,000 — — Municipal bonds 24,480 — 24,480 — Yankee debt securities 12,153 — 12,153 — Redeemable preferred stock investment 21,965 — — 21,965 Money market accounts 77,067 77,067 — — Total equity securities, debt securities and cash equivalents $ 869,684 $ 210,866 $ 636,853 $ 21,965 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Major Classes of Fixed Assets | Major classes of fixed assets consisted of the following: June 30, December 31, Useful Lives 2022 2021 (in thousands) Medical lab equipment 1 to 12 Years $ 45,479 $ 35,930 Leasehold improvements Shorter of lease term or estimated useful life 11,867 4,003 Computer hardware 1 to 5 Years 7,163 5,661 Computer software 1 to 5 Years 6,918 1,408 Building 39 Years 6,731 6,731 Aircraft 7 Years 6,503 6,503 Building improvements 6 months to 39 Years 4,830 3,936 Furniture and fixtures 1 to 10 Years 3,901 2,255 Automobile 2 to 7 Years 850 825 Land improvements 5 to 15 Years 558 403 General equipment 3 to 5 Years 44 44 Land 7,500 7,500 Assets not yet placed in service 13,391 6,718 Total 115,735 81,917 Less: Accumulated depreciation ( 29,686 ) ( 19,630 ) Fixed assets, net $ 86,049 $ 62,287 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Other Current Assets | Other current assets consisted of the following: June 30, December 31, 2022 2021 (in thousands) Reagents and supplies $ 11,942 $ 12,206 Prepaid expenses 9,419 4,244 Marketable securities interest receivable 2,692 2,743 Other receivable 1,334 1,403 Prepaid income taxes 920 1,716 Contract assets 173 237 Total $ 26,480 $ 22,549 |
Reporting Segment and Geograp_2
Reporting Segment and Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Geographic Region | Revenue by region during the three and six months ended June 30, 2022 and 2021 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Revenue: United States $ 122,096 $ 149,862 $ 439,286 $ 507,399 Foreign 3,245 3,754 6,323 5,646 Total $ 125,341 $ 153,616 $ 445,609 $ 513,045 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Schedule of Operating and Finance Lease Right-of-Use Asset, Short-term Lease Liabilities, and Long-term Lease Liabilities | The operating and finance lease right-of-use asset, short-term lease liabilities, and long-term lease liabilities as of June 30, 2022 and December 31, 2021 were as follows: June 30, December 31, 2022 2021 (in thousands) Operating lease ROU asset, net $ 18,034 $ 7,141 Operating lease liabilities, short term $ 6,216 $ 1,842 Operating lease liabilities, long term $ 11,892 $ 5,344 Finance lease ROU asset, net $ 2,671 $ 1,735 Finance lease liabilities, short term $ 741 $ 332 Finance lease liabilities, long term $ 1,938 $ 1,398 |
Schedule of Operating and Finance Lease Expense | The following was operating and finance lease expense: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 (in thousands) Operating lease cost $ 1,366 $ 232 $ 1,904 $ 301 Finance lease cost: Amortization of ROU assets 169 — 265 — Interest on lease liabilities 21 — 35 — Short-term lease cost 834 61 931 192 Total lease cost $ 2,390 $ 293 $ 3,135 $ 493 |
Schedule of Supplemental Information Related to Operating Leases and Finance Leases | Supplemental information related to operating leases and finance lease was the following: June 30, 2022 Weighted average remaining lease term - operating leases 3.54 years Weighted average discount rate - operating leases 3.81 % Weighted average remaining lease term -finance lease 3.71 years Weighted average discount rate - finance lease 3.61 % |
Schedule of Maturity Analysis of Operating and Finance Lease Liabilities using Undiscounted Cash Flows on an Annual Basis | The following is a maturity analysis of operating and finance lease liabilities using undiscounted cash flows on an annual basis with renewal periods included: Operating Leases Finance Lease (in thousands) Year Ending December 31, 2022 (remaining 6 months) $ 3,451 $ 412 2023 6,613 825 2024 4,093 818 2025 2,124 440 2026 1,523 366 2027 1,360 — Thereafter 217 — Total lease payments 19,381 2,861 Less imputed interest ( 1,273 ) ( 182 ) Total $ 18,108 $ 2,679 |
Schedule of Lease Income | Total lease income was as follows: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 (in thousands) Lease income $ 84 $ 81 $ 181 $ 237 Variable lease income 11 4 12 5 Total lease income $ 95 $ 85 $ 193 $ 242 |
Schedule of Future Fixed Lease Payments from Tenants for All Noncancelable Operating Leases | Future fixed lease payments from tenants for all noncancelable operating leases as of June 30, 2022 are as follows: Lease Payments from Tenants (in thousands) Year Ending December 31, 2022 (remaining 6 months) $ 164 2023 264 2024 180 2025 120 Total $ 728 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Equity-Based Compensation | The Company has included equity-based compensation expense as part of cost of revenue and operating expenses in the accompanying Condensed Consolidated Statements of Income as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Cost of revenue $ 2,243 $ 692 $ 3,708 $ 1,366 Research and development 2,502 1,481 4,423 2,704 Selling and marketing 1,080 620 1,905 1,046 General and administrative 2,205 733 3,610 1,372 Total $ 8,030 $ 3,526 $ 13,646 $ 6,488 |
Income per Share (Tables)
Income per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Basic and Diluted Income Per Share Computations | The following table presents the calculation of basic and diluted income per share for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands, except per share data) Net income attributable to Fulgent $ 11,537 $ 79,812 $ 165,516 $ 280,503 Weighted-average common shares—outstanding, basic 30,362 29,150 30,298 28,991 Weighted-average common shares—outstanding, diluted 31,189 30,830 31,225 30,809 Net income per common share, basic $ 0.38 $ 2.74 $ 5.46 $ 9.68 Net income per common share, diluted $ 0.37 $ 2.59 $ 5.30 $ 9.10 |
Anti-dilutive Securities Excluded from Calculation of Diluted Income Per Share | The following securities have been excluded from the calculation of diluted income per share because their effect would have been anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Options 1 2 1 5 Restricted Stock Units 858 107 379 71 |
Goodwill and Acquisition-Rela_2
Goodwill and Acquisition-Related Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summaries of Goodwill and Acquisitions-Related Intangibles Balances | Summaries of goodwill and intangibles balances assets as of June 30, 2022 and December 31, 2021 were as follows: June 30, December 31, Weighted-Average Amortization Period 2022 2021 (in thousands) Goodwill $ 121,354 $ 50,897 Royalty-free technology 10 Years $ 5,524 $ 5,803 Less: accumulated amortization ( 645 ) ( 387 ) Royalty-free technology, net 4,879 5,416 Customer relationships 13 Years 82,284 28,845 Less: accumulated amortization ( 2,999 ) ( 1,125 ) Customer relationships, net 79,285 27,720 Trade name 8 Years 3,790 1,090 Less: accumulated amortization ( 164 ) ( 45 ) Trade name, net 3,626 1,045 In-place lease intangible assets 5 Years 360 — Less: accumulated amortization — — In-place lease intangible assets, net 360 — Laboratory information system platform 5 Years 1,860 1,860 Less: accumulated amortization ( 341 ) ( 155 ) Laboratory information system platform, net 1,519 1,705 Purchased patent 10 Years 30 31 Less: accumulated amortization ( 4 ) ( 3 ) Purchased patent, net 26 28 Total intangible assets, net $ 89,695 $ 35,914 |
Summary of Annual Amortization Expense For Acquisition-Related Intangibles | Based on the carrying value of intangible assets recorded as of June 30, 2022, and assuming no subsequent impairment of the underlying assets, the annual amortization expense for intangible assets is expected to be as follows: Amounts (in thousands) Year Ending December 31, 2022 (remaining 6 months) 3,959 2023 7,848 2024 7,848 2025 7,848 2026 7,534 2027 7,221 Thereafter 47,437 Total $ 89,695 |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Business Combinations [Abstract] | |
Summary of Consideration Paid and Amount of Assets Acquired and Liabilities Assumed | The following tables summarizes the consideration paid and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date: Amounts (in thousands) Considerations Cash, net of cash received $ 137,755 Recognized amounts of identifiable assets acquired and liabilities assumed Net working capital $ ( 15,024 ) Fixed assets 20,967 ROU assets - operating 12,653 ROU assets - finance 1,183 Deferred tax assets 3,446 Other long-term assets 4,711 Identifiable intangible assets 56,560 Operating lease liabilities ( 12,653 ) Finance lease liabilities ( 1,183 ) Income tax payable ( 40 ) Other long-term liabilities ( 4,449 ) Recognized amounts of identifiable assets acquired and liabilities assumed, net 66,171 Goodwill 71,584 Total $ 137,755 |
Summary of Unaudited Pro Forma Financial Information | The following unaudited pro forma financial information summarizes the combined results of operations of Fulgent and Inform Diagnostics as if the companies had been combined as of the beginning of 2021. The pro forma financial information has been adjusted for the following: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Revenue $ 133,720 $ 193,156 $ 486,027 $ 589,851 Net income attributable to Fulgent $ 10,461 $ 83,271 $ 162,317 $ 282,703 Basic earnings per common share attributable to Fulgent $ 0.34 $ 2.86 $ 5.36 $ 9.75 Diluted earnings per common share attributable to Fulgent $ 0.34 $ 2.70 $ 5.20 $ 9.18 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 USD ($) Customer | Jun. 30, 2021 USD ($) Customer | Jun. 30, 2022 USD ($) Customer | Jun. 30, 2021 USD ($) Customer | Dec. 31, 2021 USD ($) Customer | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Contract with customer liability, revenue recognized | $ 4,700,000 | $ 1,700,000 | $ 14,400,000 | $ 25,500,000 | |
Provision for credit losses for trade accounts receivable | 7,200,000 | 2,200,000 | 18,734,000 | 3,259,000 | |
Redeemable preferred stock investment | 11,981,000 | 11,981,000 | $ 21,965,000 | ||
Unrealized loss | $ 8,000,000 | ||||
Preferred stock, redemption date | Jul. 31, 2027 | ||||
Foreign currency translation (loss) gain | (1,878,000) | 36,000 | $ (1,755,000) | 36,000 | |
Tax effects related to unrealized holding loss on available-for-sale debt securities | 1,300,000 | 0 | 5,800,000 | 0 | |
Revenue | 125,341,000 | 153,616,000 | 445,609,000 | 513,045,000 | |
Restructuring costs | 2,896,000 | 2,896,000 | |||
Accrued Liabilities | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Restructuring costs, payable balance | 2,700,000 | 2,700,000 | |||
Clinical Insurance Contracts | HSRA COVID-19 Uninsured Program | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Revenue | $ 0 | $ 37,100,000 | $ 106,700,000 | $ 149,900,000 | |
Insurance Customer | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Percentage of net accounts receivable from contract | 76% | 76% | 47% | ||
Institutional Customer | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Percentage of net accounts receivable from contract | 24% | 24% | 53% | ||
Customer Concentration Risk | Revenue | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of customers | Customer | 2 | 2 | 1 | 2 | |
Customer Concentration Risk | Revenue | Customer One | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 15% | 20% | 23% | 24% | |
Customer Concentration Risk | Revenue | Customer Two | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 12% | 16% | 11% | ||
Minimum | Customer Concentration Risk | Accounts Receivable | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of customers | Customer | 0 | 0 | |||
Concentration risk, percentage | 10% | 10% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Revenue from Contracts with Customers by Payor Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue from contracts with customers by payor type | $ 125,341 | $ 153,616 | $ 445,609 | $ 513,045 |
Accounting Standards Update 2014-09 | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from contracts with customers by payor type | 125,341 | 153,616 | 445,609 | 513,045 |
Accounting Standards Update 2014-09 | Clinical Insurance Contracts | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from contracts with customers by payor type | 63,790 | 49,520 | 274,467 | 257,078 |
Accounting Standards Update 2014-09 | Clinical Institutional Customers Contracts | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from contracts with customers by payor type | 61,232 | 103,602 | 170,700 | 255,171 |
Accounting Standards Update 2014-09 | Clinical Patients Contracts | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from contracts with customers by payor type | $ 319 | $ 494 | $ 442 | $ 796 |
Equity and Debt Securities - Su
Equity and Debt Securities - Summary of Equity -Based Compensation (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Cash and cash equivalents | $ 138,780 | $ 164,894 |
Less: Cash equivalents | (44,209) | (77,067) |
Equity and debt securities, Amortized Cost Basis | 846,795 | 794,892 |
Equity and debt securities, Unrealized Gains | 21 | 2,038 |
Equity and debt securities, Unrealized Losses | (27,592) | (4,313) |
Equity and debt securities, Aggregate Fair Value | 819,224 | 792,617 |
Debt Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 831,795 | 660,404 |
Debt securities, Unrealized Gains | 21 | 2,038 |
Debt securities, Unrealized Losses | (27,592) | (3,624) |
Debt securities, Aggregate Fair Value | 804,224 | 658,818 |
Short-Term Marketable Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 380,640 | 152,029 |
Debt securities, Unrealized Gains | 24 | |
Debt securities, Unrealized Losses | (4,018) | (247) |
Debt securities, Aggregate Fair Value | 376,622 | 151,806 |
Short-Term Marketable Securities | Corporate Debt Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 127,706 | 92,116 |
Debt securities, Unrealized Gains | 24 | |
Debt securities, Unrealized Losses | (1,755) | (148) |
Debt securities, Aggregate Fair Value | 125,951 | 91,992 |
Short-Term Marketable Securities | U.S. Treasury Bills | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 59,479 | |
Debt securities, Unrealized Losses | (218) | |
Debt securities, Aggregate Fair Value | 59,261 | |
Short-Term Marketable Securities | Money Market Accounts | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 44,209 | |
Debt securities, Aggregate Fair Value | 44,209 | |
Short-Term Marketable Securities | U.S. Government Debt Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 142,434 | 51,318 |
Debt securities, Unrealized Losses | (1,375) | (81) |
Debt securities, Aggregate Fair Value | 141,059 | 51,237 |
Short-Term Marketable Securities | Municipal Bonds | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 7,228 | 4,980 |
Debt securities, Unrealized Losses | (63) | (12) |
Debt securities, Aggregate Fair Value | 7,165 | 4,968 |
Short-Term Marketable Securities | Yankee Debt Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 11,286 | 3,615 |
Debt securities, Unrealized Losses | (159) | (6) |
Debt securities, Aggregate Fair Value | 11,127 | 3,609 |
Short-Term Marketable Securities | U.S. agency Debt Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 32,507 | |
Debt securities, Unrealized Losses | (448) | |
Debt securities, Aggregate Fair Value | 32,059 | |
Short-Term Equity Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Marketable and non-marketable securities, Amortized Cost Basis | 134,488 | |
Marketable and non-marketable securities, Unrealized Losses | (689) | |
Marketable and non-marketable securities, Aggregate Fair Value | 133,799 | |
Short-Term Equity Securities | Bond Funds | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Marketable and non-marketable securities, Amortized Cost Basis | 99,314 | |
Marketable and non-marketable securities, Unrealized Losses | (515) | |
Marketable and non-marketable securities, Aggregate Fair Value | 98,799 | |
Short-Term Equity Securities | Exchange Traded Funds | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Marketable and non-marketable securities, Amortized Cost Basis | 35,174 | |
Marketable and non-marketable securities, Unrealized Losses | (174) | |
Marketable and non-marketable securities, Aggregate Fair Value | 35,000 | |
Short-Term Equity Securities | Money Market Accounts | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Cash and cash equivalents | 77,067 | |
Cash and cash equivalents fair value disclosure | 77,067 | |
Long Term Equity Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Marketable and non-marketable securities, Amortized Cost Basis | 15,000 | |
Marketable and non-marketable securities, Aggregate Fair Value | 15,000 | |
Long Term Equity Securities | Private Equity Funds | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Marketable and non-marketable securities, Amortized Cost Basis | 15,000 | |
Marketable and non-marketable securities, Aggregate Fair Value | 15,000 | |
Equity Securities due After 1 Year through 5 Years | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 424,983 | 480,742 |
Debt securities, Unrealized Gains | 21 | 49 |
Debt securities, Unrealized Losses | (15,383) | (3,334) |
Debt securities, Aggregate Fair Value | 409,621 | 477,457 |
Equity Securities due After 1 Year through 5 Years | Corporate Debt Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 137,742 | 242,421 |
Debt securities, Unrealized Gains | 29 | |
Debt securities, Unrealized Losses | (5,977) | (1,913) |
Debt securities, Aggregate Fair Value | 131,765 | 240,537 |
Equity Securities due After 1 Year through 5 Years | U.S. Government Debt Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 223,050 | 147,699 |
Debt securities, Unrealized Gains | 15 | 7 |
Debt securities, Unrealized Losses | (6,551) | (786) |
Debt securities, Aggregate Fair Value | 216,514 | 146,920 |
Equity Securities due After 1 Year through 5 Years | Municipal Bonds | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 11,097 | 11,920 |
Debt securities, Unrealized Gains | 6 | 13 |
Debt securities, Unrealized Losses | (208) | (11) |
Debt securities, Aggregate Fair Value | 10,895 | 11,922 |
Equity Securities due After 1 Year through 5 Years | Yankee Debt Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 754 | 8,633 |
Debt securities, Unrealized Losses | (80) | (89) |
Debt securities, Aggregate Fair Value | 674 | 8,544 |
Equity Securities due After 1 Year through 5 Years | U.S. agency Debt Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 52,340 | 70,069 |
Debt securities, Unrealized Losses | (2,567) | (535) |
Debt securities, Aggregate Fair Value | 49,773 | 69,534 |
Equity Securities due After 5 Year through 10 Years | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 26,172 | 27,633 |
Debt securities, Unrealized Gains | 1,965 | |
Debt securities, Unrealized Losses | (8,191) | (43) |
Debt securities, Aggregate Fair Value | 17,981 | 29,555 |
Equity Securities due After 5 Year through 10 Years | Municipal Bonds | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 6,172 | 7,633 |
Debt securities, Unrealized Losses | (172) | (43) |
Debt securities, Aggregate Fair Value | 6,000 | 7,590 |
Equity Securities due After 5 Year through 10 Years | Redeemable Preferred Stock Investment | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 20,000 | 20,000 |
Debt securities, Unrealized Gains | 1,965 | |
Debt securities, Unrealized Losses | (8,019) | |
Debt securities, Aggregate Fair Value | $ 11,981 | $ 21,965 |
Equity and Debt Securities - Ad
Equity and Debt Securities - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Schedule Of Available For Sale And Trading Securities [Line Items] | ||
Gross unrealized loss | $ 27,600 | $ 4,300 |
Outstanding borrowing amount | 14,999 | $ 15,137 |
Margin Account Borrowing | ||
Schedule Of Available For Sale And Trading Securities [Line Items] | ||
Total debt securities | $ 491,500 |
Fair Value Measurements - Infor
Fair Value Measurements - Information about Financial Assets Measured at Fair Value on Recurring Basis Based on Three-Tier Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Level 3 | Redeemable Preferred Stock Investment | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | $ 12,000 | |
Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total equity securities, debt securities and cash equivalents | 863,433 | $ 869,684 |
Fair Value Measurements Recurring | Investment in Private Equity Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total equity trading securities | 15,000 | |
Fair Value Measurements Recurring | U.S. Treasury Bills | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 59,261 | |
Fair Value Measurements Recurring | Bond Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total equity trading securities | 98,799 | |
Fair Value Measurements Recurring | Exchange Traded Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total equity trading securities | 35,000 | |
Fair Value Measurements Recurring | Redeemable Preferred Stock Investment | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 11,981 | 21,965 |
Fair Value Measurements Recurring | Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 257,716 | 332,529 |
Fair Value Measurements Recurring | U.S. Agency Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 81,832 | 69,534 |
Fair Value Measurements Recurring | Municipal Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 24,060 | 24,480 |
Fair Value Measurements Recurring | Yankee Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 11,801 | 12,153 |
Fair Value Measurements Recurring | Money Market Accounts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents fair value disclosure | 44,209 | 77,067 |
Fair Value Measurements Recurring | U.S. Government Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 357,573 | 198,157 |
Fair Value Measurements Recurring | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total equity securities, debt securities and cash equivalents | 103,470 | 210,866 |
Fair Value Measurements Recurring | Level 1 | U.S. Treasury Bills | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 59,261 | |
Fair Value Measurements Recurring | Level 1 | Bond Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total equity trading securities | 98,799 | |
Fair Value Measurements Recurring | Level 1 | Exchange Traded Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total equity trading securities | 35,000 | |
Fair Value Measurements Recurring | Level 1 | Money Market Accounts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents fair value disclosure | 44,209 | 77,067 |
Fair Value Measurements Recurring | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total equity securities, debt securities and cash equivalents | 732,982 | 636,853 |
Fair Value Measurements Recurring | Level 2 | Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 257,716 | 332,529 |
Fair Value Measurements Recurring | Level 2 | U.S. Agency Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 81,832 | 69,534 |
Fair Value Measurements Recurring | Level 2 | Municipal Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 24,060 | 24,480 |
Fair Value Measurements Recurring | Level 2 | Yankee Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 11,801 | 12,153 |
Fair Value Measurements Recurring | Level 2 | U.S. Government Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 357,573 | 198,157 |
Fair Value Measurements Recurring | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total equity securities, debt securities and cash equivalents | 26,981 | 21,965 |
Fair Value Measurements Recurring | Level 3 | Investment in Private Equity Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total equity trading securities | 15,000 | |
Fair Value Measurements Recurring | Level 3 | Redeemable Preferred Stock Investment | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | $ 11,981 | $ 21,965 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | Jun. 30, 2022 USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Fair value assets, transfers between levels, amount | $ 0 |
Redeemable Preferred Stock Investment | Level 3 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Redeemable preferred stock investment unobservable | 12,000,000 |
Private Equity Funds | Level 3 | Other Long-Term Assets | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Investment in private securities unobservable input | $ 15,000,000 |
Fixed Assets - Major Classes of
Fixed Assets - Major Classes of Fixed Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 115,735 | $ 81,917 |
Less: Accumulated depreciation | (29,686) | (19,630) |
Fixed assets, net | 86,049 | 62,287 |
Medical Lab Equipment | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 45,479 | 35,930 |
Medical Lab Equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 1 year | |
Medical Lab Equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 12 years | |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 11,867 | 4,003 |
Useful life in years | Shorter of lease term or estimated useful life | |
Computer Hardware | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 7,163 | 5,661 |
Computer Hardware | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 1 year | |
Computer Hardware | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 5 years | |
Computer Software | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 6,918 | 1,408 |
Computer Software | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 1 year | |
Computer Software | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 5 years | |
Building | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 6,731 | 6,731 |
Useful life in years | 39 years | |
Aircraft | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 6,503 | 6,503 |
Useful life in years | 7 years | |
Building Improvements | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 4,830 | 3,936 |
Building Improvements | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 6 months | |
Building Improvements | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 39 years | |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 3,901 | 2,255 |
Furniture and Fixtures | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 1 year | |
Furniture and Fixtures | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 10 years | |
Automobile | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 850 | 825 |
Automobile | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 2 years | |
Automobile | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 7 years | |
Land Improvements | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 558 | 403 |
Land Improvements | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 5 years | |
Land Improvements | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 15 years | |
General Equipment | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 44 | 44 |
General Equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 3 years | |
General Equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 5 years | |
Land | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 7,500 | 7,500 |
Assets Not Yet Placed in Service | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 13,391 | $ 6,718 |
Fixed Assets - Additional Infor
Fixed Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense on fixed assets | $ 6.6 | $ 2.3 | $ 10.3 | $ 4.2 |
Other Current Assets - Schedule
Other Current Assets - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Reagents and supplies | $ 11,942 | $ 12,206 |
Prepaid expenses | 9,419 | 4,244 |
Marketable securities interest receivable | 2,692 | 2,743 |
Other receivable | 1,334 | 1,403 |
Prepaid income taxes | 920 | 1,716 |
Contract assets | 173 | 237 |
Total | $ 26,480 | $ 22,549 |
Reporting Segment and Geograp_3
Reporting Segment and Geographical Information - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2022 Segment | |
Segment Reporting [Abstract] | |
Number of reporting segments | 1 |
Reporting Segment and Geograp_4
Reporting Segment and Geographical Information - Summary of Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 125,341 | $ 153,616 | $ 445,609 | $ 513,045 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 122,096 | 149,862 | 439,286 | 507,399 |
Foreign | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 3,245 | $ 3,754 | $ 6,323 | $ 5,646 |
Debt, Commitments and Conting_2
Debt, Commitments and Contingencies - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Debt, Commitments and Contingencies [Line Items] | |||||
Debt security investment outstanding borrowing amount | $ 15,000,000 | ||||
Interest on loan withdrawn from margin account | 1% | ||||
Payments for closing of escrow, financed under margin loan | $ 15,000,000 | ||||
Investment margin loan | $ 14,999,000 | 14,999,000 | $ 15,137,000 | ||
Interest expense | 50,000 | $ 29,000 | 79,000 | $ 58,000 | |
Notes payable, current portion | 5,793,000 | 5,793,000 | 6,147,000 | ||
Non-cancelable purchase obligations | 22,800,000 | 22,800,000 | |||
Reagents and Other Supplies | |||||
Debt, Commitments and Contingencies [Line Items] | |||||
Non-cancelable purchase obligations | 7,700,000 | 7,700,000 | |||
Services | |||||
Debt, Commitments and Contingencies [Line Items] | |||||
Non-cancelable purchase obligations | 6,600,000 | 6,600,000 | |||
Non-cancelable purchase obligations, payable within next twenty-four months | 6,700,000 | 6,700,000 | |||
Software | |||||
Debt, Commitments and Contingencies [Line Items] | |||||
Non-cancelable purchase obligations | 995,000 | 995,000 | |||
Medical Lab Equipment | |||||
Debt, Commitments and Contingencies [Line Items] | |||||
Non-cancelable purchase obligations, payable within twelve months | 732,000 | 732,000 | |||
Xilong Scientific | FF Gene Biotech | |||||
Debt, Commitments and Contingencies [Line Items] | |||||
Interest expense | 77,000 | 0 | 156,000 | 0 | |
Notes payable | $ 5,300,000 | $ 0 | $ 5,300,000 | $ 0 | |
Debt instrument, interest rate terms | The notes payable to Xilong Scientific are due on December 31, 2022, and the interest rate on the loan is 4.97%. | ||||
Debt instrument, interest rate | 4.97% | 4.97% | |||
Installment Sale Contract | |||||
Debt, Commitments and Contingencies [Line Items] | |||||
Notes payable | $ 3,800,000 | $ 3,800,000 | $ 0 | ||
Notes payable, current portion | $ 461,000 | $ 461,000 | |||
Debt instrument, interest rate terms | The notes payable related to the installment sale are due in February 2030, and the interest rate is 1.08%. | ||||
Debt instrument, interest rate | 1.08% | 1.08% | |||
Installment Sale Contract | Other Long-Term Liabilities | |||||
Debt, Commitments and Contingencies [Line Items] | |||||
Notes payable, noncurrent portion | $ 3,400,000 | $ 3,400,000 | |||
Maximum | |||||
Debt, Commitments and Contingencies [Line Items] | |||||
Interest rate | 2% |
Leases - Additional Information
Leases - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Lessee Lease Description [Line Items] | |
Operating leases term of expiration | 2028-03 |
Minimum | Building | |
Lessee Lease Description [Line Items] | |
Remaining terms including renewal options | 6 months |
Maximum | Building | |
Lessee Lease Description [Line Items] | |
Remaining terms including renewal options | 38 months |
Leases - Schedule of Operating
Leases - Schedule of Operating and Finance Lease Right-of-Use Asset, Short-term Lease Liabilities, and Long-term Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating lease ROU asset, net | $ 18,034 | $ 7,141 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other long-term assets | Other long-term assets |
Operating lease liabilities, short term | $ 6,216 | $ 1,842 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities | Accrued liabilities |
Operating lease liabilities, long term | $ 11,892 | $ 5,344 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities |
Finance lease ROU asset, net | $ 2,671 | $ 1,735 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other long-term assets | Other long-term assets |
Finance lease liabilities, short term | $ 741 | $ 332 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities | Accrued liabilities |
Finance lease liabilities, long term | $ 1,938 | $ 1,398 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities |
Leases - Schedule of Operatin_2
Leases - Schedule of Operating and Financing Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | ||||
Operating lease cost | $ 1,366 | $ 232 | $ 1,904 | $ 301 |
Finance lease cost: | ||||
Amortization of ROU assets | 169 | 265 | ||
Interest on lease liabilities | 21 | 35 | ||
Short-term lease cost | 834 | 61 | 931 | 192 |
Total lease cost | $ 2,390 | $ 293 | $ 3,135 | $ 493 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Information Related to Operating Leases and Finance Leases (Details) | Jun. 30, 2022 |
Leases [Abstract] | |
Weighted average remaining lease term - operating leases | 3 years 6 months 14 days |
Weighted average discount rate - operating leases | 3.81% |
Weighted average remaining lease term -finance lease | 3 years 8 months 15 days |
Weighted average discount rate - finance lease | 3.61% |
Leases - Schedule of Maturity A
Leases - Schedule of Maturity Analysis of Operating and Finance Lease Liabilities using Undiscounted Cash Flows on an Annual Basis (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Operating Leases | |
2022 (remaining 6 months) | $ 3,451 |
2023 | 6,613 |
2024 | 4,093 |
2025 | 2,124 |
2026 | 1,523 |
2027 | 1,360 |
Thereafter | 217 |
Total lease payments | 19,381 |
Less imputed interest | (1,273) |
Total | 18,108 |
Finance Lease | |
2022 (remaining 6 months) | 412 |
2023 | 825 |
2024 | 818 |
2025 | 440 |
2026 | 366 |
Total lease payments | 2,861 |
Less imputed interest | (182) |
Total | $ 2,679 |
Leases - Schedule of Lease Inco
Leases - Schedule of Lease Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | ||||
Lease income | $ 84 | $ 81 | $ 181 | $ 237 |
Variable lease income | 11 | 4 | 12 | 5 |
Total lease income | $ 95 | $ 85 | $ 193 | $ 242 |
Leases - Schedule of Future Fix
Leases - Schedule of Future Fixed Lease Payments from Tenants for All Noncancelable Operating Leases (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Leases [Abstract] | |
2022 (remaining 6 months) | $ 164 |
2023 | 264 |
2024 | 180 |
2025 | 120 |
Total | $ 728 |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of Equity-Based Compensation Expenses as Part of Cost of Revenue and Operating Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total Equity-based compensation expense | $ 8,030 | $ 3,526 | $ 13,646 | $ 6,488 |
Cost of Revenue | ||||
Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total Equity-based compensation expense | 2,243 | 692 | 3,708 | 1,366 |
Research and Development | ||||
Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total Equity-based compensation expense | 2,502 | 1,481 | 4,423 | 2,704 |
Selling and Marketing | ||||
Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total Equity-based compensation expense | 1,080 | 620 | 1,905 | 1,046 |
General and Administrative | ||||
Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total Equity-based compensation expense | $ 2,205 | $ 733 | $ 3,610 | $ 1,372 |
Provision for Income Taxes - Ad
Provision for Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 2,653 | $ 23,589 | $ 51,074 | $ 90,102 |
Effective income tax rate | 19% | 24% | 24% | 25% |
Income per Share - Reconciliati
Income per Share - Reconciliation of Basic and Diluted Income Per Share Computations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to Fulgent | $ 11,537 | $ 79,812 | $ 165,516 | $ 280,503 |
Weighted-average common shares—outstanding, basic | 30,362 | 29,150 | 30,298 | 28,991 |
Weighted-average common shares—outstanding, diluted | 31,189 | 30,830 | 31,225 | 30,809 |
Net income per common share, basic | $ 0.38 | $ 2.74 | $ 5.46 | $ 9.68 |
Net income per common share, diluted | $ 0.37 | $ 2.59 | $ 5.30 | $ 9.10 |
Income per Share - Anti-dilutiv
Income per Share - Anti-dilutive Securities Excluded from Calculation of Diluted Income Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from calculation of diluted income per share | 1 | 2 | 1 | 5 |
Restricted Stock Units | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from calculation of diluted income per share | 858 | 107 | 379 | 71 |
Related Parties - Additional In
Related Parties - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
ANP Technologies, Inc., | Ming Hsieh | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage | 20% | 20% | |||
AHMC Healthcare Inc. | Genetic Sequencing Services | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | $ 253,000 | $ 738,000 | $ 1,000,000 | $ 1,900,000 | |
Trade accounts receivable, net from related parties | 220,000 | 220,000 | $ 556,000 | ||
Fulgent Pharma LLC | |||||
Related Party Transaction [Line Items] | |||||
Related party costs | 0 | 0 | 0 | 0 | |
Due to related parties | 54,000 | 54,000 | 679,000,000 | ||
Fulgent Pharma LLC | Research Development Service | |||||
Related Party Transaction [Line Items] | |||||
Expenses to transport employees and supplies | 0 | 97,000 | 0 | 205,000 | |
PTJ Associates Inc | |||||
Related Party Transaction [Line Items] | |||||
Expenses to transport employees and supplies | 99,000 | 0 | 235,000 | 0 | |
Accounts payable to related parties | 67,000 | 67,000 | $ 0 | ||
ANP Technologies Inc | |||||
Related Party Transaction [Line Items] | |||||
Due to related parties | 0 | 0 | |||
Purchase of COVID-19 antigen rapid tests kits from related party | $ 90,000 | $ 0 | $ 160,000 | $ 0 |
Goodwill and Acquisition-Rela_3
Goodwill and Acquisition-Related Intangibles - Summaries of Goodwill and Acquisitions-Related Intangibles Balances (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Goodwill And Intangible Assets [Line Items] | ||
Goodwill | $ 121,354 | $ 50,897 |
Acquisitions-related intangibles, net | 89,695 | 35,914 |
Total intangible assets, net | 89,695 | 35,914 |
Royalty-Free Technology | ||
Goodwill And Intangible Assets [Line Items] | ||
Acquisitions-related intangibles, gross | 5,524 | 5,803 |
Less: accumulated amortization | (645) | (387) |
Acquisitions-related intangibles, net | $ 4,879 | 5,416 |
Weighted-Average Amortization Period | 10 years | |
Customer Relationships | ||
Goodwill And Intangible Assets [Line Items] | ||
Acquisitions-related intangibles, gross | $ 82,284 | 28,845 |
Less: accumulated amortization | (2,999) | (1,125) |
Acquisitions-related intangibles, net | $ 79,285 | 27,720 |
Weighted-Average Amortization Period | 13 years | |
Trade Name | ||
Goodwill And Intangible Assets [Line Items] | ||
Acquisitions-related intangibles, gross | $ 3,790 | 1,090 |
Less: accumulated amortization | (164) | (45) |
Acquisitions-related intangibles, net | $ 3,626 | 1,045 |
Weighted-Average Amortization Period | 8 years | |
In-Place Lease Intangible Assets | ||
Goodwill And Intangible Assets [Line Items] | ||
Acquisitions-related intangibles, gross | $ 360 | |
Acquisitions-related intangibles, net | $ 360 | |
Weighted-Average Amortization Period | 5 years | |
Laboratory Information System Platform | ||
Goodwill And Intangible Assets [Line Items] | ||
Acquisitions-related intangibles, gross | $ 1,860 | 1,860 |
Less: accumulated amortization | (341) | (155) |
Acquisitions-related intangibles, net | $ 1,519 | 1,705 |
Weighted-Average Amortization Period | 5 years | |
Purchased Patent | ||
Goodwill And Intangible Assets [Line Items] | ||
Acquisitions-related intangibles, gross | $ 30 | 31 |
Less: accumulated amortization | (4) | (3) |
Acquisitions-related intangibles, net | $ 26 | $ 28 |
Weighted-Average Amortization Period | 10 years |
Goodwill and Acquisition-Rela_4
Goodwill and Acquisition-Related Intangibles (Additional Information) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Apr. 26, 2022 | Dec. 31, 2021 |
Goodwill And Intangible Assets [Line Items] | |||
Goodwill | $ 121,354 | $ 50,897 | |
Inform Diagnostics [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Goodwill | 71,600 | $ 71,584 | |
Intangibles attributable to acquisition | $ 56,600 | $ 56,560 |
Goodwill and Acquisition-Rela_5
Goodwill and Acquisition-Related Intangibles - Summary of Annual Amortization Expense For Acquisition-Related Intangibles (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Finite Lived Intangible Assets [Line Items] | ||
2022 (remaining 6 months) | $ 3,959 | |
2023 | 7,848 | |
2024 | 7,848 | |
2025 | 7,848 | |
2026 | 7,534 | |
2027 | 7,221 | |
Thereafter | 47,437 | |
Acquisitions-related intangibles, net | $ 89,695 | $ 35,914 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Apr. 26, 2022 | Apr. 16, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 121,354,000 | $ 121,354,000 | $ 50,897,000 | ||||
Revenue | 125,341,000 | $ 153,616,000 | 445,609,000 | $ 513,045,000 | |||
Operating income (loss) | 12,794,000 | 98,898,000 | $ 214,727,000 | 365,820,000 | |||
Customer Relationships | |||||||
Business Acquisition [Line Items] | |||||||
Estimated amortization life of identified intangible assets assumed | 13 years | ||||||
Trade Name | |||||||
Business Acquisition [Line Items] | |||||||
Estimated amortization life of identified intangible assets assumed | 8 years | ||||||
In-Place Lease Intangible Assets | |||||||
Business Acquisition [Line Items] | |||||||
Estimated amortization life of identified intangible assets assumed | 5 years | ||||||
Inform Diagnostics | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of acquisition of outstanding equity | 100% | ||||||
Total purchase price payable | $ 170,000,000 | ||||||
Goodwill | $ 71,584,000 | 71,600,000 | $ 71,600,000 | ||||
Identified intangible assets | 56,560,000 | 56,600,000 | 56,600,000 | ||||
Revenue | 23,700,000 | ||||||
Operating income (loss) | 7,100,000 | ||||||
Acquisition related transaction costs | 8,200,000 | 9,500,000 | |||||
Other adjustments related to net income | 172,000 | 517,000 | 690,000 | 1,000,000 | |||
Other adjustments related to revenue | 196,000 | $ 1,000,000 | $ 962,000 | $ 1,700,000 | |||
Inform Diagnostics | Maximum | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition measurement period from acquisition date | 1 year | ||||||
Inform Diagnostics | Selling, General and Administrative Expenses | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition related transaction costs | $ 5,200,000 | $ 6,400,000 | |||||
Inform Diagnostics | Customer Relationships | |||||||
Business Acquisition [Line Items] | |||||||
Identified intangible assets | $ 53,500,000 | ||||||
Estimated amortization life of identified intangible assets assumed | 14 years | ||||||
Inform Diagnostics | Trade Name | |||||||
Business Acquisition [Line Items] | |||||||
Identified intangible assets | $ 2,700,000 | ||||||
Estimated amortization life of identified intangible assets assumed | 7 years | ||||||
Inform Diagnostics | In-Place Lease Intangible Assets | |||||||
Business Acquisition [Line Items] | |||||||
Identified intangible assets | $ 360,000,000 | ||||||
Estimated amortization life of identified intangible assets assumed | 5 years |
Business Combinations - Summary
Business Combinations - Summary of Consideration Paid and Amount of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Apr. 26, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||||
Cash, net of cash received | $ 137,755 | $ 18,509 | ||
Goodwill | 121,354 | $ 50,897 | ||
Inform Diagnostics | ||||
Business Acquisition [Line Items] | ||||
Cash, net of cash received | $ 137,755 | |||
Net working capital | (15,024) | |||
Fixed assets | 20,967 | |||
ROU assets - operating | 12,653 | |||
ROU assets - finance | 1,183 | |||
Deferred tax assets | 3,446 | |||
Other long-term assets | 4,711 | |||
Identified intangible assets | 56,560 | 56,600 | ||
Operating lease liabilities | (12,653) | |||
Finance lease liabilities | (1,183) | |||
Income tax payable | (40) | |||
Other long-term liabilities | (4,449) | |||
Recognized amounts of identifiable assets acquired and liabilities assumed, net | 66,171 | |||
Goodwill | 71,584 | $ 71,600 | ||
Total | $ 137,755 |
Business Combinations - Summa_2
Business Combinations - Summary of Unaudited Pro Forma Financial Information (Details) - Inform Diagnostics - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Business Acquisition [Line Items] | ||||
Revenue | $ 133,720 | $ 193,156 | $ 486,027 | $ 589,851 |
Net income attributable to Fulgent | $ 10,461 | $ 83,271 | $ 162,317 | $ 282,703 |
Basic earnings per common share attributable to Fulgent | $ 0.34 | $ 2.86 | $ 5.36 | $ 9.75 |
Diluted earnings per common share attributable to Fulgent | $ 0.34 | $ 2.70 | $ 5.20 | $ 9.18 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2022 | Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | ||
Stock repurchase program, authorized amount | $ 250,000,000 | |
Number of shares repurchased | 215,000 | |
Aggregate cost of shares repurchased | $ 10,577,000 | |
Stock repurchase program, remaining authorized amount | $ 239,400,000 |