NanoString (NSTG) 10-Q3 Aug 232023 Q2 Quarterly reportFinancial data

Company Profile

Cover Page

Cover Page - shares	6 Months Ended
Cover Page - shares	Jun. 30, 2023	Jul. 27, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-35980
Entity Registrant Name	NANOSTRING TECHNOLOGIES, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-0094687
Entity Address, Address Line One	530 Fairview Avenue North
Entity Address, City or Town	Seattle
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98109
City Area Code	206
Local Phone Number	378-6266
Title of 12(b) Security	Common Stock, $0.0001 par value per share
Trading Symbol	NSTG
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		47,545,550
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001401708
Current Fiscal Year End Date	--12-31

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 114,305	$ 112,250
Restricted Cash and Cash Equivalents, Current	625	898
Short-term investments	3,297	84,282
Accounts receivable, net	42,982	31,506
Inventory, net	48,849	43,273
Prepaid expenses and other	11,387	14,565
Total current assets	221,445	286,774
Property and equipment, net	47,939	44,457
Operating lease right-of-use assets	15,458	17,581
Other assets	4,148	4,600
Total assets	288,990	353,412
Current liabilities:
Accounts payable	20,868	16,619
Accrued liabilities	8,649	7,884
Accrued compensation and other employee benefits	13,110	17,494
Customer deposits	2,079	1,757
Deferred revenue, current portion	12,287	9,588
Operating lease liabilities, current portion	5,440	5,518
Total current liabilities	62,433	58,860
Deferred revenue, net of current portion	4,836	3,754
Long-term debt, net	227,379	226,622
Operating lease liabilities, net of current portion	15,803	18,362
Total liabilities	310,451	307,598
Commitment and contingencies (Note 10)
Stockholders’ equity (deficit):
Preferred stock, $0.0001 par value, 15,000 shares authorized; none issued	0	0
Common stock, $0.0001 par value, 150,000 shares authorized; 47,526 and 46,719 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively	5	5
Additional paid-in capital	872,732	855,694
Accumulated other comprehensive loss (income)	4	(589)
Accumulated deficit	(894,202)	(809,296)
Total stockholders’ equity (deficit)	(21,461)	45,814
Total liabilities and stockholders’ equity (deficit)	$ 288,990	$ 353,412

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	15,000,000	15,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares issued (in shares)	47,526,000	46,719,000
Common stock, shares outstanding (in shares)	47,526,000	46,719,000
Restricted Cash and Cash Equivalents, Current	$ 625	$ 898

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue:
Revenue	$ 44,157	$ 32,219	$ 79,962	$ 63,299
Costs and expenses:
Cost of product revenue	29,757	15,852	52,628	30,630
Research and development	18,214	17,346	34,332	34,763
Selling, general and administrative	39,076	36,112	76,442	72,467
Total costs and expenses	87,047	69,310	163,402	137,860
Loss from operations	(42,890)	(37,091)	(83,440)	(74,561)
Other income (expense):
Interest income	1,527	406	2,812	557
Interest expense	(1,889)	(1,880)	(3,780)	(3,763)
Other income (expense), net	(211)	(490)	(218)	(707)
Total other expense, net	(573)	(1,964)	(1,186)	(3,913)
Net loss before provision for income tax	(43,463)	(39,055)	(84,626)	(78,474)
Provision for income tax	(205)	(184)	(280)	(265)
Net loss	$ (43,668)	$ (39,239)	$ (84,906)	$ (78,739)
Net loss per share - basic (in dollars per share)	$ (0.92)	$ (0.85)	$ (1.80)	$ (1.70)
Net loss per share - diluted (in dollars per share)	$ (0.92)	$ (0.85)	$ (1.80)	$ (1.70)
Weighted average shares used in computing basic net loss per share (in shares)	47,365	46,427	47,151	46,201
Weighted average shares used in computing diluted net loss per share (in shares)	47,365	46,427	47,151	46,201
Product [Member]
Revenue:
Revenue	$ 38,886	$ 27,385	$ 70,032	$ 53,956
Costs and expenses:
Cost of product revenue	25,090	11,961	42,695	23,433
Service and other revenue
Revenue:
Revenue	5,271	4,834	9,930	9,343
Costs and expenses:
Cost of product revenue	$ 4,667	$ 3,891	$ 9,933	$ 7,197

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net loss	$ (43,668)	$ (39,239)	$ (84,906)	$ (78,739)
Change in unrealized gain (loss) on available-for-sale debt securities	59	(158)	593	(1,132)
Comprehensive loss	$ (43,609)	$ (39,397)	$ (84,313)	$ (79,871)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Stockholders' Deficit Statement - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Other Comprehensive Loss	Accumulated Deficit
Balance at beginning (in shares) at Dec. 31, 2021	45,729
Balance at beginning at Dec. 31, 2021	$ 176,962	$ 5	$ 827,028	$ (318)	$ (649,753)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued for stock options and restricted stock units (in shares)		624
Stock Issued During Period, Value, Stock Options Exercised	1,035	$ 0	1,035
Stock Issued During Period, Value, Employee Stock Purchase Plan	1,502		1,502
Common stock issued for employee stock purchase plan (in shares)		49
Tax withholdings related to net share settlements of restricted stock units	(1,505)		(1,505)
APIC, Share-Based Payment Arrangement, Option, Increase for Cost Recognition			7,785
Stock-based compensation	7,785
Net loss	(39,500)				(39,500)
Other comprehensive loss	(974)			(974)
Balance at end (in shares) at Mar. 31, 2022		46,402
Balance at end at Mar. 31, 2022	$ 145,305	$ 5	835,845	(1,292)	(689,253)
Balance at beginning (in shares) at Dec. 31, 2021	45,729
Balance at beginning at Dec. 31, 2021	$ 176,962	$ 5	827,028	(318)	(649,753)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(78,739)
Balance at end (in shares) at Jun. 30, 2022		46,478
Balance at end at Jun. 30, 2022	112,665	$ 5	842,602	(1,450)	(728,492)
Balance at beginning (in shares) at Mar. 31, 2022		46,402
Balance at beginning at Mar. 31, 2022	145,305	$ 5	835,845	(1,292)	(689,253)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued for stock options and restricted stock units (in shares)		76
Stock Issued During Period, Value, Stock Options Exercised	264	$ 0	264
APIC, Share-Based Payment Arrangement, Option, Increase for Cost Recognition			6,493
Stock-based compensation	6,493
Net loss	(39,239)				(39,239)
Other comprehensive loss	(158)			(158)
Balance at end (in shares) at Jun. 30, 2022		46,478
Balance at end at Jun. 30, 2022	$ 112,665	$ 5	842,602	(1,450)	(728,492)
Balance at beginning (in shares) at Dec. 31, 2022	46,719
Balance at beginning at Dec. 31, 2022	$ 45,814	$ 5	855,694	(589)	(809,296)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued for stock options and restricted stock units (in shares)		437
Stock Issued During Period, Value, Stock Options Exercised	20	$ 0	20
Stock Issued During Period, Value, Employee Stock Purchase Plan	1,354		1,354
Common stock issued for employee stock purchase plan (in shares)		172
Tax withholdings related to net share settlements of restricted stock units	(490)		(490)
APIC, Share-Based Payment Arrangement, Option, Increase for Cost Recognition			7,626
Stock-based compensation	7,626
Net loss	(41,238)				(41,238)
Other comprehensive loss	534			534
Balance at end (in shares) at Mar. 31, 2023		47,328
Balance at end at Mar. 31, 2023	$ 13,620	$ 5	864,204	(55)	(850,534)
Balance at beginning (in shares) at Dec. 31, 2022	46,719
Balance at beginning at Dec. 31, 2022	$ 45,814	$ 5	855,694	(589)	(809,296)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(84,906)
Balance at end (in shares) at Jun. 30, 2023		47,526
Balance at end at Jun. 30, 2023	(21,461)	$ 5	872,732	4	(894,202)
Balance at beginning (in shares) at Mar. 31, 2023		47,328
Balance at beginning at Mar. 31, 2023	13,620	$ 5	864,204	(55)	(850,534)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued for stock options and restricted stock units (in shares)		198
Stock Issued During Period, Value, Stock Options Exercised	92	$ 0	92
APIC, Share-Based Payment Arrangement, Option, Increase for Cost Recognition			8,436
Stock-based compensation	8,436
Net loss	(43,668)				(43,668)
Other comprehensive loss	59			59
Balance at end (in shares) at Jun. 30, 2023		47,526
Balance at end at Jun. 30, 2023	$ (21,461)	$ 5	$ 872,732	$ 4	$ (894,202)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Operating activities
Net loss	$ (84,906)	$ (78,739)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	16,062	14,125
Depreciation and amortization	7,442	3,504
Amortization of deferred financing costs	757	732
Amortization of premium on short-term investments, net	102	1,200
Non-cash operating lease cost	2,207	1,954
Allowance for inventory obsolescence and accounts receivable credit loss	4,912	1,708
Changes in operating assets and liabilities:
Accounts receivable	(11,496)	7,920
Inventory	(11,036)	(11,531)
Prepaid expenses and other assets	3,495	(1,827)
Accounts payable	4,884	2,063
Accrued liabilities	3,164	682
Accrued compensation and other employee benefits	(4,414)	(3,453)
Customer deposits	322	310
Deferred revenue and other liabilities	3,907	1,026
Operating lease liabilities	(2,599)	(2,397)
Net cash used in operating activities	(67,197)	(62,723)
Investing activities
Purchases of property and equipment	(9,665)	(7,635)
Purchase of internal-use software assets	(3,705)	(4,118)
Payments to Acquire Intangible Assets	0	(750)
Proceeds from Sale of Short-Term Investments	0	4,000
Proceeds from maturity of short-term investments	81,476	134,974
Purchases of short-term investments	0	(45,800)
Net cash provided by investing activities	68,106	80,671
Financing activities
Tax withholdings related to net share settlements of restricted stock units	(490)	(1,504)
Proceeds from issuance of common stock for employee stock purchase plan	1,354	1,502
Proceeds from exercise of stock options	112	1,300
Repayment of finance lease obligations	(126)	(183)
Net cash provided by financing activities	850	1,115
Effect of exchange rate changes on cash, restricted cash and cash equivalents	23	(104)
Net increase in cash, restricted and cash equivalents	1,782	18,959
Cash, restricted cash and cash equivalents
Beginning of period	113,148	107,068
End of period	114,930	126,027
Supplemental disclosures
Cash and cash equivalents	114,305	$ 126,027
Restricted Cash and Cash Equivalents, Current	$ 625

Description of Business

Description of Business	6 Months Ended
Description of Business	Jun. 30, 2023
Accounting Policies [Abstract]
Description of Business	Description of the BusinessNanoString Technologies, Inc. (the “Company”) was incorporated in the state of Delaware on June 20, 2003. The Company’s headquarters is located in Seattle, Washington. The Company’s proprietary chemistries enable the direct detection, identification, and quantification of individual target molecules in biological samples by attaching unique molecular reporters to each target molecule of interest. The Company currently markets and sells its proprietary technologies, consisting of (i) its spatial biology platforms, including CosMx Spatial Molecular Imager or CosMx SMI, GeoMx Digital Spatial Profiler, or GeoMx, and AtoMx Spatial Informatics Platform, or AtoMx, a cloud-based informatics portal currently for use with CosMx, and (ii) its nCounter Analysis System for multi-plex bulk gene expression analysis. The CosMx, GeoMx, and nCounter product platforms include instruments, related consumables, software and services, have the versatility to detect both RNA and protein expression and are able to generate reliable and reproduceable data in a variety of biological sample types.

Concentration of Risks

Concentration of Risks	6 Months Ended
Concentration of Risks	Jun. 30, 2023
Risks and Uncertainties [Abstract]
Concentration of Risks	5. Concentration of Risks Financial instruments that potentially expose the Company to concentrations of credit risk consist principally of cash and cash equivalents, short-term investments, and accounts receivable. Cash is invested in accordance with the Company’s investment policy, which includes guidelines intended to minimize and diversify credit risk. Most of the Company’s investments are not federally insured and the Company holds cash deposits above the limits for federal insurance. The Company has credit risk related to the collectability of its accounts receivable. The Company performs initial and ongoing evaluations of its customers’ credit history or financial position and generally extends credit on account without collateral. Additionally, the Company evaluates collectability risk over the life of its receivables in order to establish an appropriate reserve for certain receivables that may become uncollectible in future periods. The Company has not experienced significant credit losses to date. During the three and six months ended June 30, 2023 and 2022, the Company had no customers that individually represented more than 10% of total revenue. The Company had no customers that represented more than 10% of total accounts receivable as of June 30, 2023 or December 31, 2022. The Company is also subject to supply chain risks related to the outsourcing of the manufacturing and production of its instruments to sole suppliers. Although there are a limited number of manufacturers for instruments of this type, the Company believes that other suppliers could provide similar products on comparable terms. Similarly, the Company sources certain raw materials used in the manufacture of consumables from sole suppliers. A change in or loss of suppliers, however, could cause a delay in manufacturing and a possible loss of sales, which would adversely affect operating results.

Short-term Investments

Short-term Investments	6 Months Ended
Short-term Investments	Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Short-term Investments	Short-term Investments Short-term investments consisted of available-for-sale and equity securities as follows (in thousands): Type of securities as of June 30, 2023 Amortized Gross Gross Fair value Corporate debt securities $ 3,293 $ 4 $ — $ 3,297 Total available-for-sale debt securities $ 3,293 $ 4 $ — $ 3,297 Type of securities as of December 31, 2022 Amortized Gross Gross Fair value Corporate debt securities $ 62,862 $ — $ (359) $ 62,503 Government-related debt securities 22,009 — (230) 21,779 Total available-for-sale debt securities $ 84,871 $ — $ (589) $ 84,282 The fair values of available-for-sale debt securities by contractual maturity were as follows (in thousands): June 30, 2023 December 31, 2022 Maturing in one year or less $ 3,297 $ 81,004 Maturing in one to three years — 3,278 Total available-for-sale debt securities $ 3,297 $ 84,282 The Company has both the intent and ability to sell its available-for-sale debt securities maturing greater than one year within 12 months from the balance sheet date and, accordingly, has classified these securities as current in the condensed consolidated balance sheets.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Litigation Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. 10x Genomics On May 6, 2021, 10x Genomics, Inc. and Prognosys Biosciences, Inc. (“Prognosys”) filed a complaint, and on May 19, 2021, an amended complaint, and on May 4, 2022, a second amended complaint, against the Company in the U.S. District Court for the District of Delaware. The complaint, as amended, alleges that certain of the Company’s products, services and components sold by the Company for use in connection with its GeoMx system (the “Identified GeoMx Products”) infringe seven patents owned by Prognosys: (a) U.S. Patent No. 10,472,669, “Spatially encoded biological assays,” (b) U.S. Patent No. 10,961,566, “Spatially encoded biological assays,” (c) U.S. Patent No. 10,983,113, “Spatially encoded biological assays,” (d) U.S. Patent No. 10,996,219, “Spatially encoded biological assays,” (e) U.S. Patent No. 11,001,878, “Spatially encoded biological assays,” (f) U.S. Patent No. 11,008,607, “Spatially encoded biological assays,” and (g) U.S. Patent No. 11,293,917, “Systems for analyzing target biological molecules via sample imaging and delivery of probes to substrate well” (the “Asserted Prognosys Patents”). The complaint seeks, among other relief, injunctive relief and unspecified damages (including treble damages and attorneys’ fees) in relation to the Company’s making, using, selling, offering to sell, exporting and/or importing in the United States the Identified GeoMx Products, as well as the alleged infringement by others of the Asserted Prognosys Patents through their use of the Identified GeoMx Products. The Company has evaluated the plaintiffs’ claims and does not believe that its activities infringe any patent rights held by the plaintiffs. On November 17, 2021, the Court granted the Company’s motion to dismiss the plaintiffs’ claims of pre-suit indirect infringement and willful infringement with leave to amend the complaint. Discovery is in progress. A claim construction hearing was held on February 17, 2023. A trial is scheduled for November 2023. The Company intends to vigorously defend itself in this litigation. The Company is unable to estimate a range of loss, if any, that could result should there be an adverse final decision in this case. On February 28, 2022, 10x Genomics, Inc. and President and Fellows of Harvard College (“Harvard”) filed a complaint, and on May 12, 2022, an amended complaint, and on March 1, 2023, a second amended complaint, against the Company in the U.S. District Court for the District of Delaware (the “U.S. 10x CosMx Case”). The complaint, as amended, alleges that certain of the Company’s products, services and components sold by it for use in connection with its CosMx system (the “Identified CosMx Products”) infringe six patents owned by Harvard: (a) U.S. Patent No. 10,227,639, “Compositions and Methods for Analyte Detection,” (b) U.S. Patent No. 11,021,737, “Compositions and Methods for Analyte Detection,” (c) U.S. Patent No. 11,293,051, “Compositions and Methods for Analyte Detection,” (d) U.S. Patent No. 11,293,052, “Compositions and Methods for Analyte Detection,” (e) U.S. Patent No. 11,293,054, “Compositions and Methods for Analyte Detection,” and (f) U.S. Patent No. 11,542,554, “Method and Apparatus for Volumetric Imaging.” The complaint seeks, among other relief, injunctive relief and unspecified damages (including attorneys’ fees) in relation to the Company’s making, using, selling, offering to sell, exporting and/or importing in the United States the Identified CosMx Products. The Company has evaluated the plaintiffs’ claims and does not believe that its activities infringe any patent rights held by the plaintiffs. On July 10, 2023, the Delaware District Court granted the Company’s motion to add new counterclaims for antitrust and unfair competition violations as well as the affirmative defense of “unclean hands” by 10x Genomics and Harvard. The ruling relates to the Company’s claim that Harvard made a non-exclusive licensing commitment in order to secure grant funding from the National Institutes of Health for work that led to the patents at issue in the litigation. Discovery is in progress. A claim construction hearing is scheduled for December 2023 and a trial is scheduled for September 2024. The Company intends to vigorously defend itself in this litigation. The Company is unable to estimate a range of loss, if any, that could result should there be an adverse final decision in this case. On May 9, 2022, the Company was notified of a complaint, dated March 4, 2022, naming the Company and its wholly-owned subsidiary, NanoString Technologies Germany GmbH, which 10x Genomics, Inc. filed in the Munich Regional Court I in Germany, alleging that the Company’s CosMx system and associated products and services infringe European Patent No. 2794928B1 (“EP 2794928B1”), which is owned by Harvard. The complaint seeks, among other relief, injunctive relief and damages in relation to the Company’s selling and offering to sell its CosMx system and associated products and services in Germany. The Company has evaluated the claims and does not believe that its activities infringe any patent rights held by 10x or Harvard. On May 17, 2023, the Munich court found that the CosMx, when used to detect RNA targets, infringes EP 2794928B1. The Munich court granted 10x Genomics and Harvard the right to enforce an injunction against the sale and use of the CosMx instrument and reagents for RNA detection in Germany. The Company believes the Munich court came to an erroneous conclusion and is appealing the decision. The scope and impact of the Munich’s court’s decision is limited solely to Germany. In addition, the decision does not apply to the use of the CosMx instrument for detection of proteins. The Company intends to continue to vigorously defend itself in this litigation. The Company is unable to estimate a range of loss, if any, that could result should there be an adverse final decision in this case. The Company intends to continue to vigorously defend itself in this litigation. On July 29, 2022, the Company, through its German subsidiary, filed a nullity action with the German Federal Patent Court in Munich requesting a judgment that EP 2794928B1, as in effect for Germany, be declared invalid and be revoked in its entirety. On February 10, 2023, the German Federal Patent Court issued a preliminary and non-binding opinion in this nullity action finding that the subject matter of the asserted independent claim 1 of EP 2794928B1 potentially lacked novelty and potentially lacked an inventive step over prior art. The preliminary opinion further addressed Harvard’s seven patent claim limitation requests, referred to as auxiliary requests, which 10x and Harvard seek to have applied in the event that claim 1 of EP 2794928B1, as granted, proves not to be protectable. The preliminary opinion stated that the claim limitations in Auxiliary Request 1 could potentially be used to defend EP 2794928B1 over the cited prior art. The preliminary opinion further stated that Harvard would potentially not be able to use Auxiliary Requests 2 through 7 to establish patentability over the prior art. A hearing before the German Federal Patent Court is scheduled for May 2024 and a decision in the nullity action is expected following the hearing. On August 16, 2022, the Company filed counterclaims in the U.S. 10x CosMx Case alleging that 10x Genomics’ Visium Spatial Gene Expression system and related products and services infringe the Company’s U.S. Patent No. 11,377,689, “Chemical Compositions and Uses Thereof.” On January 24, 2023, these counterclaims were consolidated with the claims of a separate patent infringement case that the Company filed against 10x Genomics on October 20, 2022, as discussed below. On October 20, 2022, the Company filed suit against 10x Genomics, Inc. in the U.S. District Court for the District of Delaware alleging that 10x Genomics’ Visium Spatial Gene Expression system and related products and services infringe the Company’s U.S. Patent No. 11,473,142, “Chemical Compositions and Uses Thereof.” On January 24, 2023, the Company’s counterclaims from the U.S. 10x CosMx Case with respect to U.S. Patent No. 11,377,689 were consolidated with the claims in this action. The Company seeks, among other relief, injunctive relief and unspecified damages (including attorneys’ fees) in relation to 10x Genomics’ making, using, selling, offering to sell, exporting and/or importing in the United States the Visium Spatial Gene Expression system and related products and services. Discovery is in progress. A trial in this consolidated case is scheduled for December 2024. On June 1, 2023, 10x Genomics and Harvard filed suits against the Company in the European Unified Patent Court, or UPC, alleging that the use and distribution of the Company’s CosMx products for RNA detection infringe EP 2794928B1 and European Patent No. 4108782B1 (“EP 4108782B1”). The Company does not believe that its activities infringe any patent rights held by 10x Genomics or Harvard. 10x Genomics is seeking preliminary injunctions against use of the CosMx for RNA detection in the jurisdictions of the UPC in which the EP 2794928B1 and EP 4108782B1 patents are in effect. Hearings have been scheduled for September 2023. The Company intends to vigorously defend itself in this litigation. The Company is unable to estimate a range of loss, if any, that could result should there be an adverse final decision in this case. Contingencies Other than the pending litigations with 10x Genomics and its co-plaintiffs, the Company is not engaged in any material legal proceedings. The Company is involved in other legal proceedings from time to time arising in the normal course of business. Additionally, the Company operates in various states and local jurisdictions for which sales, occupation, or franchise taxes may be payable to certain taxing authorities. Management believes that the outcome of these proceedings and any amounts that may become payable to certain taxing authorities will not have a material impact on the Company’s financial condition, results of operations, or liquidity.

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation and liquidity The accompanying unaudited condensed consolidated financial statements reflect the accounts of the Company and its wholly-owned subsidiaries. The unaudited condensed consolidated balance sheet at December 31, 2022 has been derived from the audited consolidated financial statements at that date but does not include all information and disclosures required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for annual financial statements. These unaudited condensed consolidated financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and U.S. GAAP for unaudited condensed consolidated financial information. Accordingly, they do not include all information and footnotes required by U.S. GAAP for complete financial statements. The accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the Company’s financial position and results of its operations as of and for the periods presented. Unless indicated otherwise, all amounts presented in financial tables are presented in thousands, except for per share and par value amounts. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Given the global economic climate, certain estimates are becoming more challenging, and actual results could differ materially from those estimates. The results of the Company’s operations for the three and six month periods ended June 30, 2023 are not necessarily indicative of the results to be expected for the full year or for any other period. Revenue Recognition The Company recognizes revenue when control of the promised goods or services is transferred to its customers in an amount that reflects the consideration expected to be received in exchange for those products and services. This process involves identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. Performance obligations are considered satisfied once the Company has transferred control of a product or service to the customer, meaning the customer has the ability to use and obtain the benefit of the product or service. The Company recognizes revenue for satisfied performance obligations only when there are no uncertainties regarding payment terms or transfer of control. The Company generates the majority of its revenue from sales of its proprietary CosMx, GeoMx, and nCounter Analysis systems, and related consumables. Services consist of instrument service contracts for maintenance, repair and other support related to customer owned instruments, and also certain service fees for assay processing and data analysis and reporting. Leases The Company determines if an arrangement is a lease at inception of a contract. The Company’s leasing portfolio is comprised of operating leases primarily for general office, manufacturing, and research and development purposes, and financing leases for equipment. Operating and financing lease liabilities and the corresponding right-of-use assets are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. Operating lease right-of-use assets are reduced by lease incentives included in the agreement. As the existing leases do not contain an implicit interest rate, the Company estimates its incremental borrowing rate based on information available at commencement date in determining the present value of future payments. The Company includes options to extend the lease in the lease liability and right-of-use asset when it is reasonably certain that the option will be exercised. Operating lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Finance lease assets are amortized within operating expenses on a straight-line basis over the shorter of the estimated useful lives of the assets or, in the instance where title does not transfer at the end of the lease term, the lease term. The interest component of a finance lease is included in interest expense and recognized using the effective interest method over the lease term. For our short-term leases, we recognize lease payments as an expense on a straight-line basis over the lease term. Capitalized Internal Use Software Costs The Company capitalizes certain development costs incurred in connection with software development for internal-use software platforms used in operations. Costs incurred in the preliminary stages of development are expensed as incurred. Once software has reached the development stage, internal and external costs, if direct, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Capitalized internal use software development costs are included in property and equipment and are amortized on a straight-line basis over the estimated useful life of the software platforms and are included in depreciation and amortization within operating expenses in the consolidated statements of operations. Unamortized capitalized internal-use software development costs were $13.2 million and $11.8 million as of June 30, 2023 and December 31, 2022, respectively. Amortization of capitalized internal-use software costs was $1.1 million and $2.2 million for the three and six months ended June 30, 2023. Capitalized costs associated with the implementation of hosted third-party cloud computing arrangements are recorded as part of current and long-term other assets. Maintenance and training costs are expensed as incurred on a straight-line basis over the term of the related hosting arrangement. Costs are recorded within the consolidated statements of operations based on functional use of the software. Unamortized capitalized software implementation costs were $1.6 million and $1.9 million as of June 30, 2023 and December 31, 2022, respectively. Amortization of capitalized software implementation costs of hosted third-party cloud computing arrangements was $0.2 million and $0.3 million for both the three and six month periods ended June 30, 2023 and 2022, respectively.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	6 Months Ended
Revenue from Contracts with Customers	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Customers	Revenue from Contracts with Customers The Company operates as a single reportable segment. The Company has one sales force that sells the Company’s spatial biology and its nCounter Analysis systems and the consumables and services related to these platforms. Disaggregated Revenues The following table of total revenue is based on the geographic location of end users or distributors who purchase products and services. For sales to distributors, their geographic location may be different from the geographic location of the ultimate end customer. For collaboration agreements, revenues are derived from partners located primarily in the United States. Americas consists of the United States, Canada, Mexico, and South America; and Asia Pacific includes Japan, China, South Korea, Singapore, Malaysia, India, and Australia. The following table provides information about disaggregated revenue by major product line and primary geographic market (in thousands): Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Americas Europe and Middle East Asia Pacific Total Americas Europe and Middle East Asia Pacific Total Instruments $ 11,536 $ 3,509 $ 2,584 $ 17,629 $ 17,555 $ 7,631 $ 3,813 $ 28,999 Consumables 13,882 5,956 1,419 21,257 26,631 11,327 3,075 41,033 Service and other revenue 3,616 1,280 375 5,271 6,861 2,303 766 9,930 Total revenue $ 29,034 $ 10,745 $ 4,378 $ 44,157 $ 51,047 $ 21,261 $ 7,654 $ 79,962 Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 Americas Europe and Middle East Asia Pacific Total Americas Europe and Middle East Asia Pacific Total Instruments $ 5,810 $ 2,214 $ 1,514 $ 9,538 $ 11,509 $ 3,960 $ 3,172 $ 18,641 Consumables 12,699 4,085 1,063 17,847 24,974 8,090 2,251 35,315 Service and other revenue 3,400 1,229 205 4,834 6,687 2,227 429 9,343 Total revenue $ 21,909 $ 7,528 $ 2,782 $ 32,219 $ 43,170 $ 14,277 $ 5,852 $ 63,299 Total revenue in the United States was $28.5 million, $21.5 million, $49.8 million and $41.9 million for the three and six month periods ended June 30, 2023 and 2022, respectively. The Company’s assets are primarily located in the United States and therefore are not allocated to any specific geographic region. Contract balances and remaining performance obligations Contract liabilities are comprised of the current and long-term portions of deferred revenue of $16.9 million and $13.0 million as of June 30, 2023 and December 31, 2022, respectively, and customer deposits of $2.1 million and $1.8 million as of June 30, 2023 and December 31, 2022, respectively, included within the condensed consolidated balance sheets. Total contract liabilities increased by $4.2 million as of June 30, 2023 as a result of additional deferred revenue of $12.4 million associated primarily with new or extended service contracts partially offset by the recognition of previously deferred revenue and customer deposits of $8.2 million for the completion of certain performance obligations during the period. The Company recorded contract assets of $0.9 million and $1.1 million as of June 30, 2023 and December 31, 2022, respectively, related to revenues recognized, but not yet invoiced to customers. The Company’s contractual payment terms for its contracts with customers approximates 40 days on average. As of June 30, 2023, unsatisfied or partially unsatisfied performance obligations related to undelivered products and service contracts were $19.0 million and are expected to be completed over the term of the related contract or as products are delivered.

Net Loss Per Share

Net Loss Per Share	6 Months Ended
Net Loss Per Share	Jun. 30, 2023
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share Net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding. Convertible Notes, outstanding options to purchase common stock, restricted stock units and common stock warrants have not been included in the calculation of diluted net loss per share because to do so would be anti-dilutive. Accordingly, the numerator and the denominator used in computing both basic and diluted net loss per share for each period are the same. The following shares were excluded from the computation of basic and diluted net loss per share for the periods presented (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Options to purchase common stock 1,697 1,868 1,712 1,906 Restricted stock units 4,741 1,871 3,658 1,553 Common stock warrants 471 471 471 471

Fair Value Measurements

Fair Value Measurements	6 Months Ended
Fair Value Measurements	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company establishes the fair value of its assets and liabilities using the price that would be received to sell an asset or paid to transfer a financial liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy is used to measure fair value. The three levels of the fair value hierarchy are as follows: • Level 1 — Quoted prices in active markets for identical assets and liabilities. • Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The recorded amounts of certain financial instruments, including cash, accounts receivable, prepaid expenses and other, accounts payable and accrued liabilities, approximate fair value due to their relatively short-term maturities. The recorded amount of the Company’s long-term debt can be determined based on the estimated or actual bid prices of the Convertible Senior Notes in an over-the-counter market, which are classified as a Level 2 financial instrument. The Company’s investments by level within the fair value hierarchy were as follows (in thousands): Fair value measurement using: Type of securities as of June 30, 2023 Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 110,746 $ — $ — $ 110,746 Short-term investments: Corporate debt securities — 3,297 — 3,297 Total $ 110,746 $ 3,297 $ — $ 114,043 Fair value measurement using: Type of securities as of December 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 104,294 $ — $ — $ 104,294 Short-term investments: Corporate debt securities — 62,503 — 62,503 U.S. Government-related debt securities — 21,779 — 21,779 Total $ 104,294 $ 84,282 $ — $ 188,576 In March 2020, the Company issued $230.0 million of Convertible Notes as described in more detail in Note 9. Long-term Debt, Net. As of June 30, 2023, the fair value of the Convertible Notes was $184.0 million.

Inventory

Inventory	6 Months Ended
Inventory	Jun. 30, 2023
Inventory Disclosure [Abstract]
Inventory	Inventory Inventory, net of related reserves, consisted of the following as of the date indicated (in thousands): June 30, 2023 December 31, 2022 Raw materials $ 9,581 $ 11,013 Intermediate manufactured components 15,502 14,715 Finished goods 23,766 17,545 Total inventory, net $ 48,849 $ 43,273

Long-term Debt

Long-term Debt	6 Months Ended
Long-term Debt	Jun. 30, 2023
Debt Disclosure [Abstract]
Long-term Debt	Long-term Debt, Net In March 2020, the Company issued $230.0 million in aggregate principal amount of its Convertible Notes in a private offering (the “Convertible Notes”). The Convertible Notes are governed by an indenture dated March 9, 2020 between the Company and U.S. Bank, National Association, as trustee. The Company received net proceeds from the offering of $222.6 million. The Convertible Notes bear interest at a rate of 2.625% per year, payable semi-annually in arrears on March 1st and September 1st. The Convertible Notes may bear additional interest under specified circumstances relating to the Company’s failure to comply with its reporting obligations under, or if the Convertible Notes are not freely tradeable as required by, the indenture governing the Convertible Notes. Upon conversion, the Convertible Notes will be convertible into cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election. The Convertible Notes are general unsecured senior obligations and will mature on March 1, 2025, unless earlier repurchased, redeemed or converted, subject to satisfaction of certain conditions and during the periods described below. The initial conversion rate for the Convertible Notes is 20.9161 shares of common stock, par value $0.0001 per share, per $1,000 principal amount of Convertible Notes (which is equivalent to an initial conversion price of approximately $47.81 per share). The conversion rate will be subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. In addition, following certain corporate events that may occur prior to the maturity date or if the Company issues a notice of redemption, the Company will increase the conversion rate for a holder who elects to convert its Convertible Notes in connection with such corporate event or in connection with such redemption, as the case may be, in certain circumstances. The Company was not allowed to redeem the Convertible Notes prior to March 5, 2023, and no sinking fund is provided for the Convertible Notes. On or after March 5, 2023, the Company may redeem for cash all or any portion of the Convertible Notes, at its option, if the last reported sale price of the common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading-day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides a notice of redemption at a redemption price equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus any accrued and unpaid interest to, but excluding, the redemption date. The Convertible Notes do not contain any financial or operating covenants or any restrictions on the issuance of other indebtedness or the issuance or repurchase of securities by the Company. The Convertible Notes indenture contains customary events of default, including that upon certain events of default, 100% of the principal and accrued and unpaid interest on the Convertible Notes will automatically become due and payable. The debt issuance costs of $7.4 million are amortized to interest expense using the effective interest method over five years, the contractual term of the Convertible Notes, with an effective interest rate of 3.3%. The Company monitors the provision of the Convertible Notes that allow for certain conversion rights at each quarterly reporting date in order to determine whether the Convertible Notes are convertible or subject to an event triggering potential redemption during the prescribed measurement periods. As of the date of this report, none of the outstanding convertible notes had been redeemed by the Company. Based on the closing price of our common stock of $4.05 on the last trading day of the quarter, the if-converted values of the Convertible Notes did not exceed the remaining principal balance as of June 30, 2023. All future principal payments related to the Convertible Notes are due in March 2025. The outstanding balances of the Company’s Convertible Notes and previously outstanding term loan consisted of the following (in thousands): June 30, 2023 December 31, 2022 Outstanding principal of Convertible Notes $ 230,000 $ 230,000 Less: unamortized issuance costs (2,621) (3,378) Long-term debt, net $ 227,379 $ 226,622 The following table sets forth total interest expense recognized related to the Convertible Notes (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Contractual interest expense $ 1,509 $ 1,509 $ 3,019 $ 3,018 Amortization of issuance costs 378 366 757 733 Total interest expense $ 1,887 $ 1,875 $ 3,776 $ 3,751

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net loss	$ (43,668)	$ (41,238)	$ (39,239)	$ (39,500)	$ (84,906)	$ (78,739)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation	The accompanying unaudited condensed consolidated financial statements reflect the accounts of the Company and its wholly-owned subsidiaries. The unaudited condensed consolidated balance sheet at December 31, 2022 has been derived from the audited consolidated financial statements at that date but does not include all information and disclosures required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for annual financial statements. These unaudited condensed consolidated financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and U.S. GAAP for unaudited condensed consolidated financial information. Accordingly, they do not include all information and footnotes required by U.S. GAAP for complete financial statements. The accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the Company’s financial position and results of its operations as of and for the periods presented. Unless indicated otherwise, all amounts presented in financial tables are presented in thousands, except for per share and par value amounts. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Given the global economic climate, certain estimates are becoming more challenging, and actual results could differ materially from those estimates. The results of the Company’s operations for the three and six month periods ended June 30, 2023 are not necessarily indicative of the results to be expected for the full year or for any other period.
Revenue Recognition	The Company recognizes revenue when control of the promised goods or services is transferred to its customers in an amount that reflects the consideration expected to be received in exchange for those products and services. This process involves identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. Performance obligations are considered satisfied once the Company has transferred control of a product or service to the customer, meaning the customer has the ability to use and obtain the benefit of the product or service. The Company recognizes revenue for satisfied performance obligations only when there are no uncertainties regarding payment terms or transfer of control.The Company generates the majority of its revenue from sales of its proprietary CosMx, GeoMx, and nCounter Analysis systems, and related consumables. Services consist of instrument service contracts for maintenance, repair and other support related to customer owned instruments, and also certain service fees for assay processing and data analysis and reporting.
Leases	The Company determines if an arrangement is a lease at inception of a contract. The Company’s leasing portfolio is comprised of operating leases primarily for general office, manufacturing, and research and development purposes, and financing leases for equipment. Operating and financing lease liabilities and the corresponding right-of-use assets are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. Operating lease right-of-use assets are reduced by lease incentives included in the agreement. As the existing leases do not contain an implicit interest rate, the Company estimates its incremental borrowing rate based on information available at commencement date in determining the present value of future payments. The Company includes options to extend the lease in the lease liability and right-of-use asset when it is reasonably certain that the option will be exercised. Operating lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Finance lease assets are amortized within operating expenses on a straight-line basis over the shorter of the estimated useful lives of the assets or, in the instance where title does not transfer at the end of the lease term, the lease term. The interest component of a finance lease is included in interest expense and recognized using the effective interest method over the lease term. For our short-term leases, we recognize lease payments as an expense on a straight-line basis over the lease term.
Net Loss Per Share	Net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding. Convertible Notes, outstanding options to purchase common stock, restricted stock units and common stock warrants have not been included in the calculation of diluted net loss per share because to do so would be anti-dilutive. Accordingly, the numerator and the denominator used in computing both basic and diluted net loss per share for each period are the same.
Fair Value Measurements	The Company establishes the fair value of its assets and liabilities using the price that would be received to sell an asset or paid to transfer a financial liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy is used to measure fair value. The three levels of the fair value hierarchy are as follows: • Level 1 — Quoted prices in active markets for identical assets and liabilities. • Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
Internal Use Software, Policy	The Company capitalizes certain development costs incurred in connection with software development for internal-use software platforms used in operations. Costs incurred in the preliminary stages of development are expensed as incurred. Once software has reached the development stage, internal and external costs, if direct, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Capitalized internal use software development costs are included in property and equipment and are amortized on a straight-line basis over the estimated useful life of the software platforms and are included in depreciation and amortization within operating expenses in the consolidated statements of operations. Unamortized capitalized internal-use software development costs were $13.2 million and $11.8 million as of June 30, 2023 and December 31, 2022, respectively. Amortization of capitalized internal-use software costs was $1.1 million and $2.2 million for the three and six months ended June 30, 2023. Capitalized costs associated with the implementation of hosted third-party cloud computing arrangements are recorded as part of current and long-term other assets. Maintenance and training costs are expensed as incurred on a straight-line basis over the term of the related hosting arrangement. Costs are recorded within the consolidated statements of operations based on functional use of the software. Unamortized capitalized software implementation costs were $1.6 million and $1.9 million as of June 30, 2023 and December 31, 2022, respectively. Amortization of capitalized software implementation costs of hosted third-party cloud computing arrangements was $0.2 million and $0.3 million for both the three and six month periods ended June 30, 2023 and 2022, respectively.

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	6 Months Ended
Revenue from Contracts with Customers (Tables)	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table provides information about disaggregated revenue by major product line and primary geographic market (in thousands): Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Americas Europe and Middle East Asia Pacific Total Americas Europe and Middle East Asia Pacific Total Instruments $ 11,536 $ 3,509 $ 2,584 $ 17,629 $ 17,555 $ 7,631 $ 3,813 $ 28,999 Consumables 13,882 5,956 1,419 21,257 26,631 11,327 3,075 41,033 Service and other revenue 3,616 1,280 375 5,271 6,861 2,303 766 9,930 Total revenue $ 29,034 $ 10,745 $ 4,378 $ 44,157 $ 51,047 $ 21,261 $ 7,654 $ 79,962 Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 Americas Europe and Middle East Asia Pacific Total Americas Europe and Middle East Asia Pacific Total Instruments $ 5,810 $ 2,214 $ 1,514 $ 9,538 $ 11,509 $ 3,960 $ 3,172 $ 18,641 Consumables 12,699 4,085 1,063 17,847 24,974 8,090 2,251 35,315 Service and other revenue 3,400 1,229 205 4,834 6,687 2,227 429 9,343 Total revenue $ 21,909 $ 7,528 $ 2,782 $ 32,219 $ 43,170 $ 14,277 $ 5,852 $ 63,299

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
Net Loss Per Share (Tables)	Jun. 30, 2023
Earnings Per Share [Abstract]
Summary of Shares Underlying Outstanding Options and Warrants were Excluded from Computation of Basic and Diluted Net Loss Per Share	The following shares were excluded from the computation of basic and diluted net loss per share for the periods presented (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Options to purchase common stock 1,697 1,868 1,712 1,906 Restricted stock units 4,741 1,871 3,658 1,553 Common stock warrants 471 471 471 471

Short-term Investments (Tables)

Short-term Investments (Tables)	6 Months Ended
Short-term Investments (Tables)	Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Debt Securities, Available-for-sale	Short-term investments consisted of available-for-sale and equity securities as follows (in thousands): Type of securities as of June 30, 2023 Amortized Gross Gross Fair value Corporate debt securities $ 3,293 $ 4 $ — $ 3,297 Total available-for-sale debt securities $ 3,293 $ 4 $ — $ 3,297 Type of securities as of December 31, 2022 Amortized Gross Gross Fair value Corporate debt securities $ 62,862 $ — $ (359) $ 62,503 Government-related debt securities 22,009 — (230) 21,779 Total available-for-sale debt securities $ 84,871 $ — $ (589) $ 84,282
Fair Values of Available-for-Sale Securities by Contractual Maturity	The fair values of available-for-sale debt securities by contractual maturity were as follows (in thousands): June 30, 2023 December 31, 2022 Maturing in one year or less $ 3,297 $ 81,004 Maturing in one to three years — 3,278 Total available-for-sale debt securities $ 3,297 $ 84,282

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
Fair Value Measurements (Tables)	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Company's Available-for-Sale Securities by Level within Fair Value Hierarchy	The Company’s investments by level within the fair value hierarchy were as follows (in thousands): Fair value measurement using: Type of securities as of June 30, 2023 Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 110,746 $ — $ — $ 110,746 Short-term investments: Corporate debt securities — 3,297 — 3,297 Total $ 110,746 $ 3,297 $ — $ 114,043 Fair value measurement using: Type of securities as of December 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 104,294 $ — $ — $ 104,294 Short-term investments: Corporate debt securities — 62,503 — 62,503 U.S. Government-related debt securities — 21,779 — 21,779 Total $ 104,294 $ 84,282 $ — $ 188,576

Inventory (Tables)

Inventory (Tables)	6 Months Ended
Inventory (Tables)	Jun. 30, 2023
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory, net of related reserves, consisted of the following as of the date indicated (in thousands): June 30, 2023 December 31, 2022 Raw materials $ 9,581 $ 11,013 Intermediate manufactured components 15,502 14,715 Finished goods 23,766 17,545 Total inventory, net $ 48,849 $ 43,273

Long-term Debt (Tables)

Long-term Debt (Tables)	6 Months Ended
Long-term Debt (Tables)	Jun. 30, 2023
Debt Disclosure [Abstract]
Components of Borrowings, Including Current Portion	The outstanding balances of the Company’s Convertible Notes and previously outstanding term loan consisted of the following (in thousands): June 30, 2023 December 31, 2022 Outstanding principal of Convertible Notes $ 230,000 $ 230,000 Less: unamortized issuance costs (2,621) (3,378) Long-term debt, net $ 227,379 $ 226,622
Schedule of Interest Expense	The following table sets forth total interest expense recognized related to the Convertible Notes (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Contractual interest expense $ 1,509 $ 1,509 $ 3,019 $ 3,018 Amortization of issuance costs 378 366 757 733 Total interest expense $ 1,887 $ 1,875 $ 3,776 $ 3,751

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Significant Accounting Policies [Line Items]
Capitalized Computer Software, Net	$ 1,600,000		$ 1,600,000		$ 1,900,000
Software and Software Development Costs
Significant Accounting Policies [Line Items]
Capitalized Computer Software, Amortization	200,000	$ 200,000	300,000	$ 300,000
Software Development
Significant Accounting Policies [Line Items]
Capitalized Computer Software, Gross	13,200,000		13,200,000		$ 11,800,000
Capitalized Computer Software, Amortization	$ 1,100,000		$ 2,200,000

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) sales_force	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Disaggregation of Revenue [Line Items]
Number Of Sales Forces \| sales_force			1
Contract liabilities	$ (16,900)		$ (16,900)		$ (13,000)
Customer deposits	2,079		2,079		1,757
Increase in contract with customer liability			4,200
Cash payments received form customers			12,400
Performance obligation satisfied in previous period			8,200
Contract assets	900		900		$ 1,100
Revenues	44,157	$ 32,219	79,962	$ 63,299
Instruments
Disaggregation of Revenue [Line Items]
Revenues	17,629	9,538	28,999	18,641
Consumables
Disaggregation of Revenue [Line Items]
Revenues	21,257	17,847	41,033	35,315
Service and other revenue
Disaggregation of Revenue [Line Items]
Revenues	5,271	4,834	9,930	9,343
Total Products And Services
Disaggregation of Revenue [Line Items]
Remaining performance obligation	19,000		19,000
UNITED STATES
Disaggregation of Revenue [Line Items]
Revenues	28,500	21,500	49,800	41,900
Asia Pacific
Disaggregation of Revenue [Line Items]
Revenues	4,378	2,782	7,654	5,852
Asia Pacific \| Instruments
Disaggregation of Revenue [Line Items]
Revenues	2,584	1,514	3,813	3,172
Asia Pacific \| Consumables
Disaggregation of Revenue [Line Items]
Revenues	1,419	1,063	3,075	2,251
Asia Pacific \| Service and other revenue
Disaggregation of Revenue [Line Items]
Revenues	375	205	766	429
Americas
Disaggregation of Revenue [Line Items]
Revenues	29,034	21,909	51,047	43,170
Americas \| Instruments
Disaggregation of Revenue [Line Items]
Revenues	11,536	5,810	17,555	11,509
Americas \| Consumables
Disaggregation of Revenue [Line Items]
Revenues	13,882	12,699	26,631	24,974
Americas \| Service and other revenue
Disaggregation of Revenue [Line Items]
Revenues	3,616	3,400	6,861	6,687
Europe and Middle East
Disaggregation of Revenue [Line Items]
Revenues	10,745	7,528	21,261	14,277
Europe and Middle East \| Instruments
Disaggregation of Revenue [Line Items]
Revenues	3,509	2,214	7,631	3,960
Europe and Middle East \| Consumables
Disaggregation of Revenue [Line Items]
Revenues	5,956	4,085	11,327	8,090
Europe and Middle East \| Service and other revenue
Disaggregation of Revenue [Line Items]
Revenues	$ 1,280	$ 1,229	$ 2,303	$ 2,227

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Schedule of Disaggregated Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Revenue	$ 44,157	$ 32,219	$ 79,962	$ 63,299
Revenue, Performance Obligation, Description of Payment Terms			40 days
Revenues	44,157	32,219	$ 79,962	63,299
Instruments
Disaggregation of Revenue [Line Items]
Revenues	17,629	9,538	28,999	18,641
Consumables
Disaggregation of Revenue [Line Items]
Revenues	21,257	17,847	41,033	35,315
Service and other revenue
Disaggregation of Revenue [Line Items]
Revenue	5,271	4,834	9,930	9,343
Revenues	5,271	4,834	9,930	9,343
Americas
Disaggregation of Revenue [Line Items]
Revenues	29,034	21,909	51,047	43,170
Americas \| Instruments
Disaggregation of Revenue [Line Items]
Revenues	11,536	5,810	17,555	11,509
Americas \| Consumables
Disaggregation of Revenue [Line Items]
Revenues	13,882	12,699	26,631	24,974
Americas \| Service and other revenue
Disaggregation of Revenue [Line Items]
Revenues	3,616	3,400	6,861	6,687
Europe and Middle East
Disaggregation of Revenue [Line Items]
Revenues	10,745	7,528	21,261	14,277
Europe and Middle East \| Instruments
Disaggregation of Revenue [Line Items]
Revenues	3,509	2,214	7,631	3,960
Europe and Middle East \| Consumables
Disaggregation of Revenue [Line Items]
Revenues	5,956	4,085	11,327	8,090
Europe and Middle East \| Service and other revenue
Disaggregation of Revenue [Line Items]
Revenues	1,280	1,229	2,303	2,227
Asia Pacific
Disaggregation of Revenue [Line Items]
Revenues	4,378	2,782	7,654	5,852
Asia Pacific \| Instruments
Disaggregation of Revenue [Line Items]
Revenues	2,584	1,514	3,813	3,172
Asia Pacific \| Consumables
Disaggregation of Revenue [Line Items]
Revenues	1,419	1,063	3,075	2,251
Asia Pacific \| Service and other revenue
Disaggregation of Revenue [Line Items]
Revenues	$ 375	$ 205	$ 766	$ 429

Net Loss Per Share - Summary of

Net Loss Per Share - Summary of Shares Underlying Outstanding Options and Warrants were Excluded from Computation of Basic and Diluted Net Loss Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share (in shares)	1,697	1,868	1,712	1,906
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share (in shares)	4,741	1,871	3,658	1,553
Common stock warrants \| Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share (in shares)	471	471	471	471

Short-term Investments - Availa

Short-term Investments - Available-for-Sale Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Amortized cost	$ 3,293	$ 84,871
Gross unrealized gains	4	0
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax	0	(589)
Fair value	3,297	84,282
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized cost	3,293	62,862
Gross unrealized gains	4	0
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax	0	(359)
Fair value	$ 3,297	62,503
US Government Agencies Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized cost		22,009
Gross unrealized gains		0
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax		(230)
Fair value		$ 21,779

Short-term Investments - Fair V

Short-term Investments - Fair Values of Available-for-Sale Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Maturing in one year or less	$ 3,297	$ 81,004
Maturing in one to three years	0	3,278
Total available-for-sale debt securities	$ 3,297	$ 84,282

Fair Value Measurements - Compa

Fair Value Measurements - Company's Available-for-Sale Securities by Level within Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Mar. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	$ 3,297	$ 84,282
Total	114,043	188,576
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	3,297	62,503
US Government Agencies Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value		21,779
Money market fund
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	110,746	104,294
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	110,746	104,294
Level 1 \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	0	0
Level 1 \| US Government Agencies Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value		0
Level 1 \| Money market fund
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	110,746	104,294
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	3,297	84,282
Level 2 \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	3,297	62,503
Level 2 \| US Government Agencies Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value		21,779
Level 2 \| Money market fund
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 3 \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	0	0
Level 3 \| US Government Agencies Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value		0
Level 3 \| Money market fund
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	$ 0
Convertible Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt fair value	$ 184,000
Senior Notes \| Convertible Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt instrument face amount			$ 230,000

Inventory - Schedule of Invento

Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 9,581	$ 11,013
Intermediate manufactured components	15,502	14,715
Finished goods	23,766	17,545
Inventory, net	$ 48,849	$ 43,273

Long-term Debt - Additional Inf

Long-term Debt - Additional Information (Details) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Mar. 31, 2020 USD ($) $ / shares	Jun. 30, 2023 USD ($) $ / shares	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) $ / shares	Jun. 30, 2022 USD ($)	Dec. 31, 2022 $ / shares	Sep. 30, 2022
Line of Credit Facility [Line Items]
Common stock, par value (in dollars per share) \| $ / shares		$ 0.0001		$ 0.0001		$ 0.0001
Share price (in usd per share) \| $ / shares		$ 4.05		$ 4.05
Convertible Notes
Line of Credit Facility [Line Items]
Debt issuance costs			$ 7,400		$ 7,400
Debt term				5 years
Effective interest rate				3.30%
Interest Expense, Debt		$ 1,887	1,875	$ 3,776	3,751
Contractual interest expense		1,509	1,509	3,019	3,018
Amortization of issuance costs		$ 378	$ 366	$ 757	$ 733
Senior Notes \| Convertible Notes
Line of Credit Facility [Line Items]
Debt instrument face amount	$ 230,000
Proceeds from issuance of debt	$ 222,600
Debt instrument stated rate							2.625%
Conversion ratio	20.9161
Common stock, par value (in dollars per share) \| $ / shares	$ 0.0001
Conversion price \| $ / shares	$ 47.81

Long-term Debt - Components of

Long-term Debt - Components of Borrowings, Including Current Portion (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Long-term debt, net of discounts	$ 227,379	$ 226,622
Convertible Notes
Debt Instrument [Line Items]
Unamortized debt discounts	(2,621)	(3,378)
Long-term debt, net of discounts	227,379	226,622
Convertible Notes
Debt Instrument [Line Items]
Outstanding Principal Of Convertible Debt	$ 230,000	$ 230,000

Long-term Debt - Schedule of In

Long-term Debt - Schedule of Interest (Details) - Convertible Notes - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Debt Instrument [Line Items]
Contractual interest expense	$ 1,509	$ 1,509	$ 3,019	$ 3,018
Amortization of issuance costs	378	366	757	733
Total interest expense	$ 1,887	$ 1,875	$ 3,776	$ 3,751