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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2020	May 01, 2020
Cover [Abstract]
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Entity Registrant Name	Quanterix Corp
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		28,310,994
Entity Central Index Key	0001503274
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 96,359	$ 109,155
Accounts receivable (less reserve for doubtful accounts of $277 and $162 as of March 31, 2020 and December 31, 2019, respectively; including $91 and $186 from related parties as of March 31, 2020 and December 31, 2019, respectively)	12,065	10,906
Inventory	11,392	10,463
Prepaid expenses and other current assets	2,722	2,137
Total current assets	122,538	132,661
Restricted cash	1,000	1,026
Property and equipment, net	11,992	12,047
Intangible assets, net	13,115	14,307
Goodwill	8,914	9,353
Right-of-use assets	12,221
Other non-current assets	525	557
Total assets	170,305	169,951
Current liabilities:
Accounts payable (including $29 and $36 to related parties as of March 31, 2020 and December 31, 2019, respectively)	4,723	5,777
Accrued compensation and benefits	4,292	6,570
Other accrued expenses (including $232 and $0 to related parties as of March 31, 2020 and December 31, 2019, respectively)	3,068	2,498
Deferred revenue (including $36 and $55 with related parties as of March 31, 2020 and December 31, 2019, respectively)	5,438	4,697
Current portion of long term debt		75
Short term lease liabilities	305
Other current liabilities	184	216
Total current liabilities	18,010	19,833
Deferred revenue, net of current portion	396	466
Long term debt, net of current portion	7,608	7,587
Long term lease liabilities	22,741
Other non-current liabilities	2,504	13,407
Total liabilities	51,259	41,293
Commitments and contingencies (Note 11)
Stockholders’ equity:
Common stock, $0.001 par value: Authorized-120,000,000 shares as of March 31, 2020 and December 31, 2019; issued and outstanding — 28,243,442 and 28,112,201 shares as of March 31, 2020 and December 31, 2019, respectively	28	28
Additional paid-in capital	348,072	345,027
Accumulated other comprehensive loss	(1,200)	(153)
Accumulated deficit	(227,854)	(216,244)
Total stockholders’ equity	119,046	128,658
Total liabilities and stockholders’ equity	$ 170,305	$ 169,951

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Condensed Consolidated Balance Sheets
Accounts receivable, reserve for doubtful accounts	$ 277	$ 162
Accounts receivable, related parties	91	186
Accounts payable, related parties	29	36
Other accrued expenses, related parties	232	0
Deferred revenue, current, related parties	$ 36	$ 55
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized shares	120,000,000	120,000,000
Common stock, shares issued	28,243,442	28,112,201
Common stock, shares outstanding	28,243,442	28,112,201

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue	$ 15,727	$ 12,337
Cost of goods sold:
Total costs of goods sold and services	8,914	6,330
Gross profit	6,813	6,007
Operating expenses:
Research and development	4,268	3,852
Selling, general and administrative	14,273	11,512
Total operating expenses	18,541	15,364
Loss from operations	(11,728)	(9,357)
Interest income (expense), net	161	21
Other income (expense), net	(167)	(47)
Loss before income taxes	(11,734)	(9,383)
Income tax benefit (provision)	124	(22)
Net loss	$ (11,610)	$ (9,405)
Reconciliation of net loss to net loss attributable to common stockholders:
Net loss per share, basic and diluted	$ (0.41)	$ (0.42)
Weighted-average common shares outstanding, basic and diluted	28,179,132	22,422,960
Product revenue
Revenue	$ 9,833	$ 9,547
Cost of goods sold:
Total costs of goods sold and services	6,186	4,248
Service and other revenue
Revenue	5,762	2,790
Cost of goods sold:
Total costs of goods sold and services	2,728	$ 2,082
Collaboration and license revenue
Revenue	$ 132

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cost of product revenue, related party activity	$ 63	$ 35
Product revenue
Related party revenue	120	80
Service and other revenue
Related party revenue	$ 24	$ 23

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Condensed Consolidated Statements of Comprehensive Loss
Net income	$ (11,610)	$ (9,405)
Other comprehensive loss:
Cumulative translation adjustment	(1,047)
Total other comprehensive loss	(1,047)
Comprehensive loss	$ (12,657)	$ (9,405)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Operating activities
Net loss	$ (11,610)	$ (9,405)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense	1,046	409
Inventory step-up amortization	438
Stock-based compensation expense	2,109	1,284
Non-cash interest expense	22	24
Loss on disposal of fixed assets	69
Changes in operating assets and liabilities:
Accounts receivable	(1,174)	(465)
Prepaid expenses and other assets	(495)	142
Inventory	(1,398)	(1,798)
Other non-current assets	32	3
Accounts payable	(1,145)	(1,321)
Accrued compensation and benefits, other accrued expenses and other current liabilities	(1,710)	(327)
Contract acquisition costs	(110)	(25)
Operating lease liabilities	253
Other non-current liabilities	(177)	6,082
Deferred revenue	671	45
Net cash used in operating activities	(13,179)	(5,352)
Investing activities
Purchases of property and equipment	(426)	(5,917)
Net cash used in investing activities	(426)	(5,917)
Financing activities
Proceeds from stock options exercised	496	503
Proceeds from ESPP purchase	440	328
Payments on notes payable	(75)
Net cash provided by financing activities	861	831
Net decrease in cash and cash equivalents	(12,744)	(10,438)
Effect of foreign currency exchange rate on cash	(78)
Cash, restricted cash, and cash equivalents at beginning of period	110,181	45,429
Cash, restricted cash, and cash equivalents at end of period	97,359	34,991
Supplemental cash flow information
Cash paid for interest	155	160
Purchases of property and equipment included in accounts payable	102	11
Reconciliation of cash, cash equivalents, and restricted cash:
Total cash, cash equivalents, and restricted cash	$ 97,359	$ 34,991

Condensed Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands	Common stock	Additional paid-in capital	Accumulated other comprehensive loss [Member]	Accumulated deficit	Total
Beginning Balance at Dec. 31, 2018	$ 22	$ 216,931		$ (175,888)	$ 41,065
Beginning balance (in shares) at Dec. 31, 2018	22,369,036
Increase (Decrease) in Stockholders' Equity
Exercise of common stock options and vesting restricted stock	$ 1	502			503
Exercise of common stock options and vesting restricted stock (in shares)	102,361
ESPP stock purchase		328			328
ESPP stock purchase (in shares)	20,050
Stock-based compensation expense		1,284			1,284
Net loss				(9,405)	(9,405)
Ending Balance at Mar. 31, 2019	$ 23	219,045		(184,853)	34,215
Ending Balance (in shares) at Mar. 31, 2019	22,491,447
Increase (Decrease) in Stockholders' Equity
Cumulative-effect adjustment for the adoption of ASC 606				440	440
Beginning Balance at Dec. 31, 2019	$ 28	345,027	$ (153)	(216,244)	128,658
Beginning balance (in shares) at Dec. 31, 2019	28,112,201
Increase (Decrease) in Stockholders' Equity
Exercise of common stock options and vesting restricted stock		496			496
Exercise of common stock options and vesting restricted stock (in shares)	108,548
ESPP stock purchase		440			440
ESPP stock purchase (in shares)	22,693
Stock-based compensation expense		2,109			2,109
Cumulative translation adjustment			(1,047)		(1,047)
Net loss				(11,610)	(11,610)
Ending Balance at Mar. 31, 2020	$ 28	$ 348,072	$ (1,200)	$ (227,854)	$ 119,046
Ending Balance (in shares) at Mar. 31, 2020	28,243,442

Organization and operations	3 Months Ended
Organization and operations	Mar. 31, 2020
Organization and operations
Organization and operations	Quanterix Corporation Notes to condensed consolidated financial statements (Unaudited) 1. Organization and operations Quanterix Corporation (Nasdaq: QTRX) (the Company) is a life sciences company that has developed next generation, ultra-sensitive digital immunoassay platforms that advance precision health for life sciences research and diagnostics. The Company's platforms are based on its proprietary digital "Simoa" detection technology. The Company's Simoa bead-based and planar array platforms enable customers to reliably detect protein biomarkers in extremely low concentrations in blood, serum and other fluids that, in many cases, are undetectable using conventional, analog immunoassay technologies, and also allow researchers to define and validate the function of novel protein biomarkers that are only present in very low concentrations and have been discovered using technologies such as mass spectrometry. These capabilities provide the Company's customers with insight into the role of protein biomarkers in human health that has not been possible with other existing technologies and enable researchers to unlock unique insights into the continuum between health and disease. The Company is currently focusing on protein detection, which it believes is an area of significant unmet need and where it has significant competitive advantages. However, in addition to enabling new applications and insights in protein analysis, the Company’s Simoa platforms have also demonstrated applicability across other testing applications, including detection of nucleic acids and small molecules. The Company launched its first immunoassay platform, the Simoa HD-1, in 2014. The HD-1 is a fully automated immunoassay bead-based platform with multiplexing and custom assay capability, and related assay test kits and consumable materials. The Company launched a second bead-based immunoassay platform (SR-X) in the fourth quarter of 2017 with a more compact footprint than the Simoa HD-1 and less automation designed for lower volume requirements while still allowing multiplexing and custom assay capability. The Company initiated an early-access program for its third instrument (SP-X) on the new Simoa planar array platform in January 2019, with the full commercial launch commencing in April 2019. In July 2019, the Company launched the Simoa HD-X, an upgraded version of the Simoa HD-1 which replaces the HD-1. The HD-X has been designed to deliver significant productivity and operational efficiency improvements, as well as greater user flexibility. The Company began shipping and installing HD-X instruments at customer locations in the third quarter of 2019, ahead of its original fourth quarter expectation. The Company also performs research services on behalf of customers to apply the Simoa technology to specific customer needs. The Company's customers are primarily in the research use only market, which includes academic and governmental research institutions, the research and development laboratories of pharmaceutical manufacturers, contract research organizations, and specialty research laboratories. The Company acquired Aushon Biosystems, Inc. (Aushon) in January 2018. With the acquisition of Aushon, the Company acquired a CLIA certified laboratory, as well as Aushon's proprietary sensitive planar array detection technology. Leveraging its proprietary sophisticated Simoa image analysis and data analysis algorithms, the Company further refined this planar array technology to develop the SP-X instrument to provide the same Simoa sensitivity found in its bead-based platform. The Company completed the acquisition of UmanDiagnostics AB (Uman), a Swedish company located in Umea, Sweden, in August 2019. The acquisition closed with respect to 95% of the outstanding shares of capital stock of Uman on July 1, 2019 and with respect to the remaining 5% of the outstanding shares of capital stock of Uman on August 1, 2019. Uman supplies neurofilament light (Nf-L) antibodies and ELISA kits, which are widely recognized by researchers and biopharmaceutical and diagnostics companies world-wide as the premier solution for the detection of Nf-L to advance the development of therapeutics and diagnostics for neurodegenerative conditions. With the acquisition of Uman, the Company has secured a long-term source of supply for a critical technology. “At-the-market offering” On March 19, 2019, the Company entered into a Sales Agreement (the Sales Agreement) with Cowen and Company, LLC (Cowen) with respect to an “at-the-market” offering program under which the Company may offer and sell, from time to time at its sole discretion, shares of its common stock, par value $0.001 per share, having an aggregate offering price of up to $50.0 million through Cowen as its sales agent. On June 5, 2019, the Company issued approximately 2.2 million shares of common stock at an average stock price of $22.73 per share pursuant to the terms of the Sales Agreement. The “at-the-market” offering resulted in gross proceeds of $49.7 million. The Company incurred $1.7 million in issuance costs associated with the “at-the-market” offering, resulting in net proceeds to the Company of $48.0 million. Underwritten public offering On August 8, 2019, the Company entered into an underwriting agreement with J.P. Morgan Securities LLC and SVB Leerink LLC, as representatives of the several underwriters, relating to an underwritten public offering of approximately 2.7 million shares of the Company’s common stock, par value $0.001 per share. The underwritten public offering resulted in gross proceeds of $69.0 million. The Company incurred $4.5 million in issuance costs associated with the underwritten public offering, resulting in net proceeds to the Company of $64.5 million. Basis of presentation The interim condensed consolidated financial statements are unaudited. The unaudited condensed consolidated financial statements reflect, in the opinion of the Company’s management, all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of financial position, results of operations, comprehensive loss and cash flows for each period presented in accordance with United States generally accepted accounting principles (U.S. GAAP) for interim financial information and with the instructions to Form 10‑Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2019 filed with the Securities and Exchange Commission on March 13, 2020 (the 2019 Annual Report on Form 10-K). The consolidated financial information as of December 31, 2019 has been derived from the audited 2019 consolidated financial statements included in the 2019 Annual Report on Form 10‑K.

Significant accounting policies	3 Months Ended
Significant accounting policies	Mar. 31, 2020
Significant accounting policies
Significant accounting policies	2. Significant accounting policies Principles of consolidation The condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of Quanterix Corporation and its wholly‑owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. In making those estimates and assumptions, the Company bases its estimates on historical experience and on various other assumptions believed to be reasonable. The Company’s significant estimates included in the preparation of the consolidated financial statements are related to revenue recognition, fair value of equity instruments and notes receivable, fair value of assets acquired and liabilities assumed in acquisitions, valuation allowances recorded against deferred tax assets, right-of-use assets and lease liabilities, and stock‑based compensation. Actual results could differ from those estimates. Foreign Currency The Company translates assets and liabilities of its foreign subsidiaries at rates in effect at the end of the reporting period. Revenues and expenses are translated at average rates in effect during the reporting period. Translation adjustments are included in accumulated other comprehensive loss. Income taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company's consolidated financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on differences between the consolidated financial statement carrying amounts and the tax bases of the assets and liabilities using the enacted tax rates in effect in the years in which the differences are expected to reverse. A valuation allowance against deferred tax assets is recorded if, based on the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company accounts for uncertain tax positions in accordance with the provisions of Accounting Standards Codification (ASC) 740, Income Taxes (ASC 740). When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. As of March 31, 2020 the Company did not have any significant uncertain tax positions. Business combinations Under the acquisition method of accounting, the Company allocates the fair value of the total consideration transferred to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition. The fair values assigned, defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants, are based on estimates and assumptions determined by management. The excess consideration over the aggregate fair value of tangible and intangible assets, net of liabilities assumed, is recorded as goodwill. These valuations require significant estimates and assumptions, especially with respect to intangible assets. The Company typically uses the discounted cash flow method to value acquired intangible assets. This method requires significant management judgment to forecast future operating results and establish residual growth rates and discount factors. The estimates used to value and amortize intangible assets are consistent with the plans and estimates that are used to manage the business and are based on available historical information and industry estimates and averages. If the subsequent actual results and updated projections of the underlying business activity change compared with the assumptions and projections used to develop these values, the Company could experience impairment charges. In addition, the Company has estimated the economic lives of certain acquired assets and these lives are used to calculate depreciation and amortization expense. If estimates of the economic lives change, depreciation or amortization expenses could be accelerated or slowed. Restricted cash Restricted cash primarily represents collateral for a letter of credit issued as security for the lease for the Company’s headquarters in Billerica, Massachusetts. The restricted cash is long term in nature as the Company will not have access to the funds until more than one year from March 31, 2020. Recent accounting pronouncements The Company is considered to be an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012, as amended (JOBS Act). The JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. Thus, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has elected to avail itself of this extended transition period and, as a result, the Company will not be required to adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies so long as the Company remains an emerging growth company. Recently Adopted In February 2016, the Financial Accounting Standards Board (FASB) established Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use (ROU) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. An optional transition approach is required under ASU 2018-11, applying the new standard to all leases existing at the date of initial application. On January 1, 2020, the Company adopted ASU No. 2016-02, Leases (Topic 842), (ASC 842), using the optional transition method allowing entities to recognize a cumulative effect adjustment to the opening balance sheet without restating comparative prior periods presented. ASC 842 requires a lessee to recognize assets and liabilities on the balance sheet for most leases and changes many key definitions, including the definition of a lease. Lessees will continue to differentiate between finance leases and operating, and classification will impact expense recognition. The Company elected the following practical expedients for all lease asset classes, which must be elected as a package and applied consistently to all of its leases at the transition date: i) the Company did not reassess whether any expired or existing contracts are or contain leases; ii) the Company did not reassess the lease classification for any expired or existing leases (that is, all existing leases that were classified as operating leases in accordance with ASC 840, Leases (ASC 840), are classified as operating leases); and iii) the Company did not reassess initial direct costs for any existing leases. At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the facts and circumstances present in the arrangement. Leases with a term greater than one year are recognized on the balance sheet as right-of-use assets and short-term and long-term lease liabilities, as applicable. The Company has elected the practical expedient not to recognize leases on the balance with a term of twelve months or less. The Company’s leases consist of office and lab space and office equipment. All of the Company’s leases are classified as operating, and options to renew a lease are only included in the lease term to the extent those options are reasonably certain to be exercised. Additionally, the Company elected to apply the practical expedient not to separate lease and nonlease components for all leases. Operating lease liabilities and their corresponding ROU assets are initially recorded based on the present value of lease payments over the expected remaining lease term. The rate implicit in lease contracts is typically not readily determinable, and as a result, the Company utilizes its incremental borrowing rate to discount lease payments, which reflects the fixed rate at which the Company could borrow on a collateralized basis the amount of the lease payments, for a similar term, in a similar economic environment. To estimate its incremental borrowing rate, a credit rating applicable to the Company is estimated using a synthetic credit rating analysis since the Company does not currently have a rating agency-based credit rating. The adoption of ASC 842 resulted in the recognition of operating lease ROU assets and operating lease liabilities of $12.2 million and $22.8 million, respectively, on the Company’s condensed consolidated balance sheet, with the difference between the ROU asset and lease liability primarily attributable to unamortized lease incentives and deferred rent related to its lease for its corporate headquarters at 900 Middlesex Turnpike in Billerica, Massachusetts (the “900 Middlesex Turnpike Lease”). In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment. This ASU eliminates Step 2 from the goodwill impairment test. In addition, income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The Company adopted this ASU on January 1, 2020 with no material effect to its financial statements. In August 2018, the FASB issued ASU No. 2018‑13, “Fair Value Measurement (Topic 820), Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement”. This ASU removed the following disclosure requirements: (1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; (2) the policy for timing of transfers between levels; and (3) the valuation processes for Level 3 fair value measurements. Additionally, this update added the following disclosure requirements: (1) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and (2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. ASU 2018‑13 will be effective for fiscal years beginning after December 15, 2019 with early adoption permitted. The Company adopted this ASU on January 1, 2020 with no material effect to its financial statements. Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments — Credit Losses: Measurement of Credit Losses on Financial Instruments (ASU 2016-13), which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables and available-for-sale debt securities. The standard is effective for the Company beginning in the first quarter of 2021, with early adoption permitted. The Company is currently evaluating the expected impact of ASU 2016-13 on its financial statements. There have been no other material changes to the significant accounting policies and recent accounting pronouncements previously disclosed in the 2019 Annual Report on Form 10‑K.

Revenue recognition

3 Months Ended

Mar. 31, 2020

Revenue recognition

Revenue recognition

3. Revenue recognition

The Company recognizes revenue when a customer obtains control of a promised good or service. The amount of revenue recognized reflects consideration that the Company expects to be entitled to receive in exchange for these goods and services, incentives and taxes collected from customers, that are subsequently remitted to governmental authorities.

The Company adopted Topic 606, Revenue from Contracts with Customers (ASC 606) on January 1, 2019, using the modified retrospective method for all contracts not completed as of the date of adoption.

Customers

The Company’s customers primarily consist of entities engaged in the life sciences research market that pursue the discovery and development of new drugs for a variety of neurologic, cardiovascular, oncologic and other protein biomarkers associated with diseases. The Company’s customer base includes several of the largest biopharmaceutical companies, academic research organizations and distributors who serve certain geographic markets.

Product revenue

The Company’s products are composed of analyzer instruments, assay kits and other consumables such as reagents. Products are sold directly to biopharmaceutical and academic research organizations or are sold through distributors in EMEA and Asia Pacific regions. The sales of instruments are generally accompanied by an initial year of implied service-type warranties and may be bundled with assays and other consumables and may also include other items such as training and installation of the instrument and/or an extended service warranty. Revenues from the sale of products are recognized at a point in time when the Company transfers control of the product to the customer, which is upon installation for instruments sold to direct customers, and based upon shipping terms for assay kits and other consumables. Revenue for instruments sold to distributors is generally recognized based upon shipping terms (either upon shipment or delivery).

Service and other revenue

Service revenues are composed of contract research services, initial implied one-year service-type warranties, extended services contracts and other services such as training. Contract research services are provided through the Company’s Accelerator Laboratory and generally consist of fixed fee contracts. Revenues from contract research services are recognized at a point in time when the Company completes and delivers its research report on each individually completed study, or over time if the contractual provisions allow for the collection of transaction consideration for costs incurred plus a reasonable margin through the period of performance of the services. Revenues from service-type warranties are recognized ratably over the contract service period. Revenues from other services are immaterial.

Collaboration and license revenue

The Company may enter into agreements to license the intellectual property and know-how associated with its instruments in exchange for license fees and future royalties (as described below). The license agreements provide the licensee with a right to use the intellectual property with the license fee revenues recognized at a point in time as the underlying license is considered functional intellectual property. The Company recognized revenues from a sales- or usage- based royalties related to the licensing of the Company’s technology and intellectual property.

Payment terms

The Company’s payment terms vary by the type and location of customer and the products or services offered. Payment from customers is generally required in a term ranging from 30 to 45 days from date of shipment or satisfaction of the performance obligation. The Company does not provide financing arrangements to its customers.

Disaggregated revenue

When disaggregating revenue, the Company considered all of the economic factors that may affect its revenues. The following tables disaggregate the Company's revenue from contracts with customers by revenue type (in thousands):


	Three Months Ended
	March 31, 2020
(in thousands)	NA		EMEA		Asia Pacific		Total
Product revenues
Instruments	$	1,753	$	726	$	1,209	$	3,688
Consumable and other products		2,924		2,704		517		6,145
Totals	$	4,677	$	3,430	$	1,726	$	9,833

Service and other revenues
Service-type warranties	$	748	$	379	$	52	$	1,179
Research services		3,667		82		538		4,287
Other services		231		60		5		296
Totals	$	4,646	$	521	$	595	$	5,762

Collaboration and license revenue
Collaboration and license revenue	$	122	$	10	$	—	$	132
Totals	$	122	$	10	$	—	$	132


	Three Months Ended
	March 31, 2019
(in thousands)	NA		EMEA		Asia Pacific		Total
Product revenues
Instruments	$	1,397	$	1,145	$	874	$	3,416
Consumable and other products		3,619		2,088		424		6,131
Totals	$	5,016	$	3,233	$	1,298	$	9,547

Service and other revenues
Service-type warranties	$	689	$	234	$	37	$	960
Research services		1,504		—		—		1,504
Other services		201		108		17		326
Totals	$	2,394	$	342	$	54	$	2,790

Collaboration and license revenue
Collaboration and license revenue	$	—	$	—	$	—	$	—
Totals	$	—	$	—	$	—	$	—

The Company’s contracts with customers may include promises to transfer multiple products and services to a customer. The Company combines any performance obligations that are immaterial with one or more other performance obligations that are material to the contract. For arrangements with multiple performance obligations, the Company allocates the contract transaction price, including discounts, to each performance obligation based on its relative standalone selling price. Judgment is required to determine the standalone selling price for each distinct performance obligation. The Company determines standalone selling prices based on prices charged to customers in observable transactions, and uses a range of amounts to estimate standalone selling prices for each performance obligation. The Company may have more than one range of standalone selling price for certain products and services based on the pricing for different customer classes.

Variable consideration in the Company’s contracts primarily relates to (i) sales- and usage-based royalties related to the license of intellectual property in collaboration and license contracts and (ii) certain non-fixed fee research services contracts. ASC 606 provides for an exception to estimating the variable consideration for sales- and usage-based royalties related to the license of intellectual property, such that the sales- or usage-based royalty will be recognized in the period the underlying transaction occurs. The Company has recorded sales- or usage-based royalty revenue for the three months ended March 31, 2020 related to the intellectual property licensed by the Company. The Company recognizes revenue from sales- or usage-based royalty revenue at the later of when the sale or usage occurs and the satisfaction or partial satisfaction of the performance obligation to which the royalty has been allocated.

The aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied or are partially satisfied as of March 31, 2020 and 2019 is $5.8 million and $5.9 million, respectively. As of March 31, 2020, of the performance obligations not yet satisfied or partially satisfied, $5.4 million is expected to be recognized as revenue in the next 12 months, with the remainder to be recognized within the 24 months thereafter. The $5.8 million at March 31, 2020 principally consists of amounts billed for undelivered services related to initial and extended service-type warranties and research services, as well as $1.7 million related to undelivered licenses of intellectual property for a diagnostics company (see Note 13).

Changes in deferred revenue from contracts with customers were as follows (in thousands):


	Three Months Ended March 31, 2020
Balance at December 31, 2019	$	5,163
Deferral of revenue		1,850
Recognition of deferred revenue		(1,179)
Balance at March 31, 2020	$	5,834

Costs to obtain a contract

The Company’s sales commissions are generally based on revenues of the Company. The Company has determined that certain commissions paid under its sales incentive programs meet the requirements to be capitalized as they are incremental and would not have occurred absent a customer contract. The change in the balance of costs to obtain a contract are as follows (in thousands):


	Three Months Ended March 31, 2020
Balance at December 31, 2019	$	335
Deferral of costs to obtain a contract		94
Recognition of costs to obtain a contract		(203)
Balance at March 31, 2020	$	226

The Company has classified the balance of capitalized costs to obtain a contract as a component of prepaid expenses and other current assets and classifies the expense as a component of cost of goods sold and selling, general and administrative expense over the estimated life of the contract. The Company considers potential impairment in these amounts each period.

ASC 606 provides entities with certain practical expedients and accounting policy elections to minimize the cost and burden of adoption.

The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with original expected length of one year or less and (ii) contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed.

The Company will exclude from its transaction price any amounts collected from customers related to sales and other similar taxes.

When determining the transaction price of a contract, an adjustment is made if payment from a customer occurs either significantly before or significantly after performance, resulting in a significant financing component. The Company does not assess whether a significant financing component exists if the period between when the Company performs its obligations under the contract and when the customer pays is one year or less. None of the Company’s contracts contained a significant financing component as of March 31, 2020 and 2019, respectively.

The Company has elected to account for the shipping and handling as an activity to fulfill the promise to transfer the product, and therefore will not evaluate whether shipping and handling activities are promised services to its customers.

Net loss per share

3 Months Ended

Mar. 31, 2020

Net loss per share

Net loss per share

4. Net loss per share

Basic net loss per common share is calculated by dividing the net loss by the weighted‑average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted‑average number of common shares and potentially dilutive securities outstanding for the period determined using the treasury‑stock and if‑converted methods. For purposes of the diluted net loss per share calculation, unvested restricted common stock, restricted stock units, stock options, and warrants are considered to be potentially dilutive securities, but are excluded from the calculation of diluted net loss per share because their effect would be anti‑dilutive and therefore basic and diluted net loss per share were the same for all periods presented.

The following table sets forth the outstanding potentially dilutive securities that have been excluded in the calculation of diluted net loss per share because to do so would be anti‑dilutive (in common stock equivalent shares):


	March 31,
	2020	2019
Unvested restricted common stock and restricted stock units	561,786	419,716
Outstanding stock options	2,840,525	2,802,343
Outstanding warrants	10,000	76,041
Total	3,412,311	3,298,100

As of March 31, 2020 and 2019, the Company had an obligation to issue warrants to purchase an additional 93,341 shares of common stock to a vendor if a contract is terminated prior to a minimum purchase commitment being met. No amounts are presented in the table above for this obligation to issue a warrant as the issuance of the warrant is not considered probable.

Fair value of financial instruments

3 Months Ended

Mar. 31, 2020

Fair value of financial instruments

Fair value of financial instruments

5. Fair value of financial instruments

ASC Topic 820, Fair Value Measurement (ASC 820), establishes a fair value hierarchy for instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability, and are developed based on the best information available in the circumstances.

ASC 820 identifies fair value as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a three‑tier fair value hierarchy that distinguishes between the following:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 inputs are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; and

Level 3 inputs are unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability.

Fair value measurements as of March 31, 2020 are as follows (in thousands):


			Quoted prices				Significant
			in active		Significant other		unobservable
			markets		observable		inputs
Description	Total		(Level 1)		inputs (Level 2)		(Level 3)
Financial assets
Cash equivalents	$	91,916	$	91,916	$	—	$	—
Note receivable		150		—		—		150
	$	92,066	$	91,916	$	—	$	150

Fair value measurements as of December 31, 2019 are as follows (in thousands):


			Quoted prices				Significant
			in active		Significant other		unobservable
			markets		observable		inputs
Description	Total		(Level 1)		inputs (Level 2)		(Level 3)
Financial assets
Cash equivalents	$	109,155	$	109,155	$	—	$	—
Note receivable		150		—		—		150
	$	109,305	$	109,155		—	$	150

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Inventory

3 Months Ended

Mar. 31, 2020

Inventory

Inventory

6. Inventory

Inventory consists of the following (in thousands):


	March 31,		December 31,
	2020		2019
Raw materials	$	5,128	$	4,717
Work in process		2,619		2,573
Finished goods		3,645		3,173
Total	$	11,392	$	10,463

Inventory comprises commercial instruments, assays, and the materials required to manufacture assays.

Investments	3 Months Ended
Investments	Mar. 31, 2020
Investments
Investments	7. Investments During the third quarter of 2016, the Company purchased a minority interest in preferred stock in a privately held company for $0.3 million. During the third quarter of 2018, the Company was issued a convertible note by a privately held company having a principal amount of $0.2 million. The preferred stock investment is recorded on a cost basis in other non-current assets on the accompanying balance sheets as the Company does not have a controlling interest, does not have the ability to exercise significant influence over the privately held company, and the fair value of the equity investment is not readily determinable. The Company performs an impairment analysis at each reporting period to determine if there is any readily available fair value information that would indicate an impairment. The Company has determined there was no impairment during the three months ended March 31, 2020 or in any prior period. The convertible note is held as an available-for-sale investment, which is carried at fair market value, with the unrealized gains and losses included in the determination of comprehensive income and reporting stockholders equity. When determining the estimated fair value of the convertible notes, the Company used a commonly accepted valuation methodology. Equity investments that do not result in consolidation and are not accounted for under the equity method are measured at fair value, with any changes in fair value recognized in net income. For any such investments that do not have readily determinable fair values, the Company elects the measurement alternative to measure the investments at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.

Other accrued expenses and other non-current liabilities

3 Months Ended

Mar. 31, 2020

Other accrued expenses and other non-current liabilities

Other accrued expenses and other non-current liabilities

8. Other accrued expenses and other non-current liabilities

Other accrued expenses consist of the following (in thousands):


	March 31,		December 31,
	2020		2019
Accrued inventory	$	999	$	459
Accrued royalties		535		476
Accrued professional services		692		655
Accrued development costs		121		151
Accrued other		721		757
Total accrued expenses	$	3,068	$	2,498

Other non-current liabilities consist of the following (in thousands):


	March 31,		December 31,
	2020		2019
Leasehold obligation incentive	$	—	$	7,572
Deferred rent		—		3,011
Deferred tax liabilities		2,498		2,816
Other		6		8
Total non-current liabilities	$	2,504	$	13,407

As part of the Company’s adoption of ASC 842 on January 1, 2020, the Company derecognized the leasehold obligation incentive of $7.6 million and deferred rent of $3.0 million. Per ASC 842 the leasehold obligation incentive and deferred rent reduce the Company’s ROU assets at time of adoption for the related leases. Refer to Note 2 and Note 10 for further detail.

Warrants, stock-based compensation, stock options, restricted stock and restricted stock units

3 Months Ended

Mar. 31, 2020

Warrants, stock-based compensation, stock options, restricted stock and restricted stock units

Warrants, stock-based compensation, stock options, restricted stock and restricted stock units

9. Warrants, stock-based compensation, stock options, restricted stock and restricted stock units

Warrants

The Company issued no warrants during the three months ended March 31, 2020, and had 10,000 warrants outstanding as of March 31, 2020.

Stock-based compensation

Stock‑based compensation expense for all stock awards consists of the following (in thousands):


	Three Months Ended March 31,
	2020		2019
Cost of product revenue	$	36	$	17
Cost of service and other revenue		68		60
Research and development		242		168
Selling, general, and administrative		1,763		1,039
Total	$	2,109	$	1,284

As of March 31, 2020, under the 2007 Stock Option and Grant Plan (the 2007 Plan), options to purchase 1,178,538 shares of common stock were outstanding and no shares of common stock were available for future awards. In connection with the completion of the Company’s initial public offering (IPO) in December 2017, the Company terminated the 2007 Plan.

In December 2017, the Company adopted the 2017 Employee, Director and Consultant Equity Incentive Plan (the 2017 Plan), under which it may grant incentive stock options, non‑qualified stock options, restricted stock, and other stock‑based awards. Upon its adoption, the 2017 Plan allowed for the issuance of up to 1,042,314 shares of common stock plus up to 2,490,290 shares of common stock represented by awards granted under the 2007 Plan that are forfeited, expire or are cancelled without delivery of shares or which result in the forfeiture of shares of common stock back to the Company on or after the date the 2017 Plan became effective. The 2017 Plan contains an “evergreen” provision, which allows for an annual increase in the number of shares of common stock available for issuance under the 2017 Plan on the first day of each fiscal year during the period beginning in fiscal year 2019 and ending in fiscal year 2027. The annual increase in the number of shares shall be equal to the lowest of: 4% of the number of shares of common stock outstanding as of such date; and an amount determined by the Company’s Board of Directors or Compensation Committee. The number of shares available for grant under the 2017 Plan increased by 1,126,172 on January 1, 2020 due to this provision. As of March 31, 2020, under the 2017 Plan, options to purchase 1,661,987 shares of common stock were outstanding and unvested restricted stock units for 521,980 shares of common stock were outstanding. As of March 31, 2020, 802,135 shares were available for grant under the 2017 Plan.

In December 2017, the Company adopted the 2017 Employee Stock Purchase Plan (the 2017 ESPP). The 2017 ESPP contains an “evergreen” provision, which allows for an increase on the first day of each fiscal year beginning with fiscal year 2018. The increase in the number of shares shall be equal to the lowest of: 1% of the number of shares of common stock outstanding on the last day of the immediately preceding fiscal year or an amount determined by the Company’s Board of Directors or Compensation Committee. The number of shares available for grant under the 2017 ESPP increased by 281,543 on January 1, 2020 due to this provision. As of March 31, 2020, 871,422 shares were available for issuance under the 2017 ESPP.

Stock options

Under the 2007 Plan and the 2017 Plan, stock options may not be granted with exercise prices of less than fair market value on the date of the grant. Options generally vest ratably over a four‑year period with 25% vesting on the first anniversary and the remaining 75% vesting ratably on a monthly basis over the remaining three years. These options expire ten years after the grant date. Activity under the 2007 Plan and the 2017 Plan was as follows:


		Weighted-average		Remaining contractual	Aggregate intrinsic value
	Options	exercise price		life (in years)	(in thousands)
Outstanding at December 31, 2019	2,507,062	$	14.41	7.58	$	24,870
Granted	428,271	$	27.16
Exercised	(63,074)	$	7.86
Cancelled	(31,734)	$	24.29
Outstanding at March 31, 2020	2,840,525	$	16.37	7.75	$	14,641
Vested and expected to vest at March 31, 2020	2,840,525	$	16.37	7.75	$	14,641
Exercisable at March 31, 2020	1,411,836	$	9.93	6.54	$	12,703

Using the Black-Scholes option pricing model, the weighted-average fair value of options granted to employees and directors during the three months ended March 31, 2020 and 2019 was $11.82 and $7.90 per share, respectively. The expense related to awards granted to employees was $1.1 million and $0.7 million for the three months ended March 31, 2020 and 2019, respectively. The intrinsic value of stock options exercised was $1.1 million and $1.2 million for the three months ended March 31, 2020 and 2019, respectively. Activity related to non-employee awards was not material to the three months ended March 31, 2020 and 2019.

Restricted stock

Restricted common stock awards represent shares of common stock issued to employees subject to forfeiture if the vesting conditions are not satisfied. In December 2014, the Company issued 78,912 shares of restricted common stock to a director of the Company under the 2007 Plan. Under the terms of the agreement, shares of common stock issued are subject to a four-year vesting schedule. Vesting occurs periodically at specified time intervals and specified percentages. In January 2015, the Company issued 781,060 shares of restricted common stock to an executive of the Company under the 2007 Plan. The majority of these shares were issued subject to a four-year vesting schedule with 25% vesting on the first anniversary and the remaining vesting 75% ratably on a monthly basis over the remaining three years, while another portion was issued subject to performance based vesting. The vesting of performance based awards is dependent upon achievement of specified financial targets of the Company. The majority of the performance criteria were achieved during the years ended December 31, 2016 and 2015 and the remaining unvested awards with performance conditions are not material. No restricted common stock awards were granted or vested during the three months ended March 31, 2020. As of March 31, 2020, the Company had 39,806 shares of unvested restricted common stock with a weighted average grant date fair value of $3.12 per share.

Restricted stock units

Restricted stock units (RSUs) represent the right to receive shares of common stock upon meeting specified vesting requirements. In the three months ended March 31, 2020, the Company issued 210,074 RSUs to employees of the Company under the 2017 Plan. Under the terms of the agreements, 191,867 of the RSUs issued are subject to a four-year vesting schedule with 25% vesting on the first anniversary of the grant date and the remaining vesting 75% ratably on a monthly basis over the remaining three years; 15,890 of the RSUs vest on December 31, 2020; and 2,317 vested immediately upon grant. A summary of RSU activity is as follows:


		Weighted-average
		grant date
		fair value
	Shares	per share
Unvested RSUs as of December 31, 2019	370,123	$	20.48
Granted	210,074	$	27.36
Vested	(45,474)	$	18.92
Cancelled	(12,743)	$	26.89
Unvested RSUs as of March 31, 2020	521,980	$	23.22

The expense related to awards granted to employees and directors was $0.9 million and $0.5 million for the three months ended March 31, 2020 and 2019, respectively.

At March 31, 2020, there was $11.4 million of total unrecognized compensation cost related to unvested restricted stock units, which is expected to be recognized over the remaining weighted‑average vesting period of 3.07 years.

Leases

3 Months Ended

Mar. 31, 2020

Leases

Leases

10. Leases

The Company is a lessee under leases of offices, lab spaces, and certain office equipment. Some of the Company’s leases include options to extend the lease, and these options are included in the lease term to the extent they are reasonably certain to be exercised.

900 Middlesex Turnpike Lease

The Company’s primary lease is the 900 Middlesex Turnpike Lease. On October 2, 2018, the Company entered into a 137-month operating lease for the Company’s new headquarters in Billerica, Massachusetts. The lease is for approximately 92,000 square feet of office and laboratory space and commenced on April 1, 2019. The lease contains a period of free rent and escalating monthly rent payments. As part of the lease, the Company was required to enter into a $1.0 million Letter of Credit drawable by the lessor under specifically outlined conditions, which will be subsequently reduced throughout the lease term. Pursuant to a work letter entered into in connection with the 900 Middlesex Turnpike Lease, the landlord contributed an aggregate of $8.2 million toward the cost of construction and tenant improvements for the building. Under the lease the Company has the option to extend the lease for two successive five-year terms, and the renewal options are not reasonably certain to be exercised.

In applying the ASC 842 transition guidance, the 900 Middlesex Turnpike Lease remained classified as an operating lease and the Company recorded ROU assets of $12.2 million and lease liability of $22.8 million on the effective date. The difference between the ROU and the lease liability was driven by the Company derecognizing deferred rent of $3.0 million and the lease obligation incentive of $7.6 million. The Company is recognizing rent expense on a straight-line basis throughout the remaining term of the leases.

48 Tvistevägen

The Company has three leases at 48 Tvistevägen Umeå, Sweden for laboratory spaces, manufacturing spaces, and office space. All of these Uman leases have been assessed as operating leases.

In applying the ASC 842 transition guidance, the Uman leases remained classified as operating leases and the Company recorded ROU assets of less than $0.1 million and lease liability of less than $0.1 million on the effective date. The Company is recognizing rent expense on a straight-line basis throughout the remaining term of the leases.

Summary of all lease costs recognized under ASC 842

The following table contains a summary of the lease costs recognized under ASC 842 and other information pertaining to the Company’s operating leases for the three months ended March 31, 2020:


Operating leases (in thousands)	For the three months ended March 31, 2020
Lease Costs (1)
Operating lease costs	$	660
Total lease cost	$	660

Other information
Operating cash flows used for operating leases	$	407
Weighted average remaining lease term		10.3 years
Weighted average discount rate		9.73%

(1) Short-term lease costs and variable lease costs incurred by the Company for the three months ended March 31, 2020 were immaterial.

As of March 31, 2020, future minimum commitments under ASC 842 under the Company’s operating leases were as follows:


Maturity of lease liabilities (in thousands)	As of March 31, 2020
Remainder 2020	$	1,696
2021		3,363
2022		3,435
2023		3,487
2024		3,557
2025 and thereafter		22,203
Total lease payments	$	37,741
Less: imputed interest		14,695
Total operating lease liabilities	$	23,046

As previously disclosed in the Company’s 2019 Annual Report on Form 10-K and under the previous lease accounting standard, ASC 840, the total commitment for non-cancelable operating leases was $38.0 million as of December 31, 2019 (amounts in thousands):


2020	$	2,081
2021		3,322
2022		3,396
2023		3,480
2024 and Forward		25,760
	$	38,039

Commitments and contingencies	3 Months Ended
Commitments and contingencies	Mar. 31, 2020
Commitments and contingencies
Commitments and contingencies	11. Commitments and contingencies Tufts University In June 2007, the Company entered into a license agreement (the License Agreement) for certain intellectual property with Tufts University (Tufts). Tufts is a related party to the Company due to Tufts’ equity ownership in the Company and because a board member of the Company’s Board of Directors was affiliated with Tufts. The License Agreement, which was subsequently amended, is exclusive and sublicensable, and will continue in effect on a country-by-country basis as long as there is a valid claim of a licensed patent in a country. The Company is committed to pay license and maintenance fees, prior to commercialization, in addition to low single digit royalties on direct sales and services and a royalty on sublicense income. During each of the three months ended March 31, 2020 and 2019, the Company recorded royalty expense of $0.2 million in cost of product revenue on the consolidated statements of operations. Other licenses During the year ended December 31, 2012, the Company entered into a license agreement for certain intellectual property with a third party. The non‑exclusive, non‑sublicensable license provides the Company access to certain patents specifically for protein detection, and shall be in effect until the expiration of the last licensed patent. In consideration for these rights, the Company committed to certain license fees, milestone payments, minimum annual royalties and a mid‑single digit royalty. The Company is required to make mid‑single digit royalty payments on net sales of products and services which utilize the licensed technology. In September 2019, all remaining patents related to the intellectual property expired and the license agreement terminated. As this agreement was terminated in 2019, the Company recorded no royalty expense during the three months ended March 31, 2020 and royalty expense of less than $0.1 million in cost of product revenue on the consolidated statements of operations during the three months ended March 31, 2019. Development and supply agreement Through the Company’s development agreement with STRATEC Biomedical, as amended in December 2016, the parties agreed on additional development services for an additional fee, which is payable when the additional development is completed. A total of $11.7 million is payable to STRATEC upon completion of the development activities. This amount is being recorded to research and development expense and accrued expenses as the services are performed. The services were completed during the year ended December 31, 2018. Substantive efforts related to these additional development activities started in the first quarter of 2019 and were completed in the third quarter of 2019. The Company’s supply agreement with STRATEC Biomedical requires the Company to purchase a minimum number of commercial units over a seven‑year period ending in May 2021. If the Company were to fail to purchase a required number of commercial units, the Company would be obligated to pay termination costs plus a fee based on the shortfall of commercial units purchased compared to the required minimum amount. Based on the number of commercial instruments purchased as of March 31, 2020, assuming no additional commercial units were purchased, this fee would equal $9.1 million. The amount the Company could be obligated to pay under the minimum purchase commitment is reduced as each commercial unit is purchased. Also, if the Company terminates the supply agreement under certain circumstances and has not purchased a required number of commercial units, it would be obligated to issue warrants to purchase 93,341 shares of common stock (the Supply Warrants) at $0.003214 per share. The Company believes that it will purchase sufficient units to meet the requirements of the minimum purchase commitment and, therefore, has not accrued for any of the potential cash consideration. The Supply Warrants are accounted for at fair value; however, the fair value of the Supply Warrants as of March 31, 2020 and December 31, 2019 was insignificant as there was a low probability of the warrants being issued. Legal contingencies The Company is subject to claims in the ordinary course of business; however, the Company is not currently a party to any pending or threatened litigation, the outcome of which would be expected to have a material adverse effect on its financial condition or the results of its operations. The Company accrues for contingent liabilities to the extent that the liability is probable and estimable.

Notes payable

3 Months Ended

Mar. 31, 2020

Notes payable

Notes payable

12. Notes payable

Loan agreement

On April 14, 2014, the Company executed a Loan Agreement with a lender, as subsequently amended. As of March 31, 2020, there were no additional amounts available to borrow under the debt facility. The interest rate on this term loan is variable based on a calculation of the prime rate less 5.25% with a minimum interest rate of 8%. Interest is paid monthly beginning the month following the borrowing date. At loan inception and in connection with the amendments, the Company issued the lender warrants to purchase shares of stock. The Loan Agreement also contains prepayment penalties and an end of term charge. Fees incurred upon execution of the agreements, and the fair value of warrants on the date of grant were accounted for as a reduction in the book value of debt and accreted through interest expense, using the effective interest rate method, over the term of the debt.

Amendment 5 to loan agreement

In August 2018, the Company signed Amendment 5 to the Loan Agreement (Amendment 5). Amendment 5 instituted a 2018 End of Term Charge of $0.1 million. Additionally, the Term Loan Maturity Date extended until March 1, 2020. Amendment 5 additionally, changed the due date of the End of Term Charge to, the earlier of (i) the Term Loan Maturity Date, (ii) the date that Borrower prepays the outstanding Secured Obligations or (iii) the date that the Secured Obligations become due and payable. The Company incurred a cost of $0.05 million in relation to the execution of Amendment 5. In connection with the extension of the due date of the Loan, the deferral of principal payments (Amendment 3) was further deferred until the new Term Loan Maturity Date.

On March 2, 2020, the Company paid $0.1 million in end of term fees related to Amendment 5 of the Loan Agreement.

Amendment 6 to loan agreement

In October 2018, the Company signed Amendment 6 to the Loan Agreement, which amended the Loan Agreement’s collateral clause to exclude the $1 million certificate of deposit associated with the lease on the Company’s new headquarters in Billerica, MA.

Amendment 7 to loan agreement

On April 15, 2019, the Company signed Amendment 7 to the Loan Agreement, which extends the interest only payment period through July 1, 2021 and also extends the maturity date until October 1, 2021. As part of this Amendment 7, a “2019 End of Term Charge” for $50,000 was added to the Loan Agreement due on the earliest to occur of (i) the Term Loan Maturity Date, (ii) the date that the Company prepays the outstanding Secured Obligations and (iii) the date that the Secured Obligations become due and payable. In addition, the Company is required to pay the loan principal in five equal installments starting July 1, 2021 with the final principal payment to be made on October 1, 2021. As of March 31, 2020, the remaining loan balance is classified as a long term liability since all principal payments are due greater than twelve months after the balance sheet date.

As of March 31, 2020, debt payment obligations due based on principal payments are as follows (in thousands):


Remainder 2020	$	—
2021		7,688
	$	7,688

Non‑cash interest expense related to debt discount amortization and accretion of end of term fees was $0.1 million or less for each of the three months ended March 31, 2020 and 2019.

Collaboration and license arrangements	3 Months Ended
Collaboration and license arrangements	Mar. 31, 2020
Collaboration and license arrangements
Collaboration and license arrangements	13. Collaboration and license arrangements The Company has entered into certain licenses with other companies for use of Uman’s technology. These licenses have royalty components which the Company earns and recognizes royalty revenue from throughout the year. The Company recognized revenue of $0.1 million for the three months ended March 31, 2020, as collaboration and license revenue. The Company did not earn and recognize any royalty revenue from license agreements prior to the Company’s acquisition of Uman. As of December 31, 2019 the Company had $1.7 million of deferred revenue related to ongoing negotiations with a diagnostics company.

Employee benefit plans	3 Months Ended
Employee benefit plans	Mar. 31, 2020
Employee benefit plans
Employee benefit plans	14. Employee benefit plans The Company sponsors a 401(k) savings plan for its employees. The Company may make discretionary contributions for each 401(k) plan year. During the three months ended March 31, 2020 and 2019, the Company made contributions of $0.1 million and $0.1 million, respectively.

Business combinations

3 Months Ended

Mar. 31, 2020

Business combinations

Business combinations

15. Business Combinations

UmanDiagnostics AB

On August 1, 2019, the Company completed its acquisition of Uman for an aggregate purchase price of $21.2 million, comprised of (i) $15.7 million in cash plus (ii) 191,152 shares of common stock (representing $5.5 million based on the closing prices of the Company’s common stock on the Nasdaq Global Market on July 1, 2019 and August 1, 2019, the dates of issuance). The acquisition closed with respect to 95% of the outstanding shares of capital stock of Uman on July 1, 2019 and with respect to the remaining 5% of the outstanding shares of capital stock of Uman on August 1, 2019.

Uman supplies Nf-L antibodies and ELISA kits, which are widely recognized by researchers and biopharmaceutical and diagnostics companies world-wide as the premier solution for the detection of Nf-L to advance the development of therapeutics and diagnostics for neurodegenerative conditions. With the acquisition of Uman, the Company has secured a long-term source of supply for a critical technology. This acquisition was considered a business acquisition for accounting purposes.

The Company has accounted for the acquisition of Uman as a purchase of a business under U.S. GAAP. Under the acquisition method of accounting, the assets and liabilities of Uman are recorded as of the acquisition date of July 1, 2019, at their respective fair values, and consolidated with those of the Company.

The Company has preliminarily allocated the purchase price to the net tangible and intangible assets based on their estimated fair values as of July 1, 2019. As such, the fair value of the assets acquired and liabilities assumed, including intangible assets, presented in the table below are provisional and will be finalized in a later period once the fair value procedures are completed. Goodwill established as a result of the Uman acquisition is not tax deductible in any taxing jurisdiction.

The following table summarizes the preliminary purchase price allocation, net of $1.2 million in cash and cash equivalents acquired (in thousands):


Purchase price:
Cash and stock paid	$	21,217
Cash and cash equivalents acquired		1,221
Purchase price, net		19,996

Assets (liabilities) acquired:
Accounts receivable	$	638
Inventory		1,680
Prepaids and other current assets		114
Property and equipment		33
Intangibles		13,450
Goodwill		8,111
Accounts payable		(20)
Accrued expense and other current liabilities		(871)
Deferred tax liabilities		(3,139)
Total	$	19,996

Revenue and net loss related to Uman’s operations was $0.4 million and less than $0.1 million, respectively, for the three months ended March 31, 2020, and is included in the Company’s consolidated statements of operations.

The following unaudited pro forma information presents the condensed consolidated results of operations of the Company and Uman for the three months ended March 31, 2019 as if the acquisition of Uman had been completed on January 1, 2018. These pro forma condensed consolidated financial results have been prepared for comparative purposes only and include certain adjustments that reflect pro forma results of operations, such as increased amortization for the fair value of acquired intangible assets, increased cost of sales related to the inventory valuation adjustment, and adjustments relating to the tax effect of combining the Company and Uman businesses.

The unaudited pro forma results do not reflect any operating efficiencies or potential cost savings which may result from the consolidation of the operations of the Company and Uman. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of the results of operations that actually would have been achieved had the acquisition occurred as of January 1, 2018, nor are they intended to represent or be indicative of future results of operations (in thousands):


	Three months ended
	March 31, 2019
Revenue (unaudited)	$	12,908
Pre-tax loss (unaudited)	$	(9,062)

The Company recorded no costs associated with the acquisition of Uman for the three months ended March 31, 2020 and 2019, respectively. For the year ended December 31, 2019, the Company incurred $1.9 million in costs associated with the acquisition of Uman. Costs associated with the acquisition of Uman are recorded as selling, general, and administrative expenses within the consolidated statements of operations.

Goodwill and Acquired Intangible Assets

3 Months Ended

Mar. 31, 2020

Goodwill and Acquired Intangible Assets

Goodwill and Acquired Intangible Assets

16. Goodwill and Acquired Intangible Assets

As of March 31, 2020, the carrying amount of goodwill was $8.9 million. The following is a rollforward of the Company’s goodwill balance (in thousands):


	Goodwill
Balance as of December 31, 2019	$	9,353
Cumulative translation adjustment		(439)
Balance as of March 31, 2020	$	8,914

Acquired intangible assets as of March 31, 2020 consist of the following (in thousands):


		March 31, 2020
		Gross				Cumulative		Net		Weighted
	Estimated Useful	Carrying		Accumulated		Translation		Carrying		Average
	Life (in years)	Value		Amortization		Adjustment		Value		Life Remaining
Know-how	8.5	$	13,000	$	(1,149)	$	(738)	$	11,113	7.75
Developed technology	7		1,650		(815)		—		835	4.84
Customer relationships	8.5 - 10		1,360		(472)		(6)		882	7.83
Non-compete agreements	5.5		340		(51)		(18)		271	4.75
Trade names	3		50		(36)		—		14	0.84
Total		$	16,400	$	(2,523)	$	(762)	$	13,115

Acquired intangible assets as of December 31, 2019 consist of the following (in thousands):


		December 31, 2019
		Gross				Cumulative		Net		Weighted
	Estimated Useful	Carrying		Accumulated		Translation		Carrying		Average
	Life (in years)	Value		Amortization		Adjustment		Value		Life Remaining
Know-how	8.5	$	13,000	$	(767)	$	(99)	$	12,134	8.00
Developed technology	7		1,650		(737)		—		913	5.09
Customer relationships	8.5 - 10		1,360		(421)		(1)		938	8.08
Non-compete agreements	5.5		340		(34)		(2)		304	5.00
Trade names	3		50		(32)		—		18	1.09
Total		$	16,400	$	(1,991)	$	(102)	$	14,307

The Company acquired $13.5 million of intangible assets in the Uman acquisition, of which $13.0 million was assigned to know-how, $0.4 million was assigned to non-compete agreements, and $0.1 million was assigned to customer relationships. The know-how and customer relationships intangible assets are being amortized on a straight-line basis over an 8.5 year amortization period, and the non-compete agreement intangible asset is being amortized on a straight-line basis over a 5.5 year amortization period. In total, the weighted-average amortization period for these intangible assets is 8.4 years.

The Company is currently evaluating the fair value of assets acquired and liabilities assumed from the Uman acquisition, including intangible assets and their related amortization periods. As such, the $13.5 million in intangible assets presented in the table above are provisional and will be finalized in a later period once the fair value procedures are completed.

The Company recorded amortization expense of $0.5 million and $0.2 million for the three months ended March 31, 2020 and 2019, respectively. Amortization relating to developed technology is recorded within research and development expenses, amortization of customer relationships is recorded within selling, general, and administrative expenses, amortization of trade names is recorded within selling, general and administrative expenses, amortization of non-compete agreements is recorded within selling, general, and administrative expenses, and amortization of know-how is recorded within cost of goods sold.

Future estimated amortization expense of acquired intangible assets as of March 31, 2020 is as follows (in thousands):


For the Years Ended December 31,	Estimated Amortization Expense
Remainder 2020	$	1,578
2021		2,013
2022		1,930
2023		1,848
2024		1,733
Thereafter		4,013
	$	13,115

Related party transactions	3 Months Ended
Related party transactions	Mar. 31, 2020
Related party transactions
Related party transactions	17. Related party transactions The Company entered into the License Agreement for certain intellectual property with Tufts (see Note 11). Tufts is a related party to the Company due to Tufts’ equity ownership in the Company and because a member of the Company’s Board of Directors was affiliated with Tufts. During the three months ended March 31, 2020 and 2019, the Company recorded royalty expense of $0.2 million and $0.2 million, respectively, in cost of product revenue on the consolidated statements of operations. During the year ended December 31, 2017, Harvard University became a related party because a member of the Company’s Board of Directors is affiliated with Harvard University. Revenue recorded from sales to Harvard University were less than $0.1 million for each of the three months ended March 31, 2020 and 2019, respectively.

Accumulated other comprehensive loss

3 Months Ended

Mar. 31, 2020

Accumulated other comprehensive loss

Accumulated other comprehensive loss

18. Accumulated other comprehensive loss

The following shows the changes in the components of accumulated other comprehensive loss for the three months ended March 31, 2020 which consisted of only foreign currency translation adjustments for the periods shown (in thousands):


			Accumulated
	Cumulative		Other
	Translation		Comprehensive
	Adjustment		Loss
Balance - December 31, 2019	$	(153)	$	(153)
Current period accumulated other comprehensive loss		(1,047)		(1,047)
Balance - March 31, 2020	$	(1,200)	$	(1,200)

Subsequent events	3 Months Ended
Subsequent events	Mar. 31, 2020
Subsequent events
Subsequent events	19. Subsequent events The Company had no significant subsequent events for the period March 31, 2020 through the filing date of this Quarterly Report on Form 10-Q.

Significant accounting policies (Policies)	3 Months Ended
Significant accounting policies (Policies)	Mar. 31, 2020
Significant accounting policies
Principles of consolidation	Principles of consolidation The condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of Quanterix Corporation and its wholly‑owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation.
Foreign Currency	Foreign Currency The Company translates assets and liabilities of its foreign subsidiaries at rates in effect at the end of the reporting period. Revenues and expenses are translated at average rates in effect during the reporting period. Translation adjustments are included in accumulated other comprehensive loss.
Income taxes	Income taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company's consolidated financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on differences between the consolidated financial statement carrying amounts and the tax bases of the assets and liabilities using the enacted tax rates in effect in the years in which the differences are expected to reverse. A valuation allowance against deferred tax assets is recorded if, based on the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company accounts for uncertain tax positions in accordance with the provisions of Accounting Standards Codification (ASC) 740, Income Taxes (ASC 740). When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. As of March 31, 2020 the Company did not have any significant uncertain tax positions.
Use of estimates	Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. In making those estimates and assumptions, the Company bases its estimates on historical experience and on various other assumptions believed to be reasonable. The Company’s significant estimates included in the preparation of the consolidated financial statements are related to revenue recognition, fair value of equity instruments and notes receivable, fair value of assets acquired and liabilities assumed in acquisitions, valuation allowances recorded against deferred tax assets, right-of-use assets and lease liabilities, and stock‑based compensation. Actual results could differ from those estimates.
Business combinations	Business combinations Under the acquisition method of accounting, the Company allocates the fair value of the total consideration transferred to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition. The fair values assigned, defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants, are based on estimates and assumptions determined by management. The excess consideration over the aggregate fair value of tangible and intangible assets, net of liabilities assumed, is recorded as goodwill. These valuations require significant estimates and assumptions, especially with respect to intangible assets. The Company typically uses the discounted cash flow method to value acquired intangible assets. This method requires significant management judgment to forecast future operating results and establish residual growth rates and discount factors. The estimates used to value and amortize intangible assets are consistent with the plans and estimates that are used to manage the business and are based on available historical information and industry estimates and averages. If the subsequent actual results and updated projections of the underlying business activity change compared with the assumptions and projections used to develop these values, the Company could experience impairment charges. In addition, the Company has estimated the economic lives of certain acquired assets and these lives are used to calculate depreciation and amortization expense. If estimates of the economic lives change, depreciation or amortization expenses could be accelerated or slowed.
Restricted Cash	Restricted cash Restricted cash primarily represents collateral for a letter of credit issued as security for the lease for the Company’s headquarters in Billerica, Massachusetts. The restricted cash is long term in nature as the Company will not have access to the funds until more than one year from March 31, 2020.
Recent accounting pronouncements	Recent accounting pronouncements The Company is considered to be an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012, as amended (JOBS Act). The JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. Thus, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has elected to avail itself of this extended transition period and, as a result, the Company will not be required to adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies so long as the Company remains an emerging growth company. Recently Adopted In February 2016, the Financial Accounting Standards Board (FASB) established Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use (ROU) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. An optional transition approach is required under ASU 2018-11, applying the new standard to all leases existing at the date of initial application. On January 1, 2020, the Company adopted ASU No. 2016-02, Leases (Topic 842), (ASC 842), using the optional transition method allowing entities to recognize a cumulative effect adjustment to the opening balance sheet without restating comparative prior periods presented. ASC 842 requires a lessee to recognize assets and liabilities on the balance sheet for most leases and changes many key definitions, including the definition of a lease. Lessees will continue to differentiate between finance leases and operating, and classification will impact expense recognition. The Company elected the following practical expedients for all lease asset classes, which must be elected as a package and applied consistently to all of its leases at the transition date: i) the Company did not reassess whether any expired or existing contracts are or contain leases; ii) the Company did not reassess the lease classification for any expired or existing leases (that is, all existing leases that were classified as operating leases in accordance with ASC 840, Leases (ASC 840), are classified as operating leases); and iii) the Company did not reassess initial direct costs for any existing leases. At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the facts and circumstances present in the arrangement. Leases with a term greater than one year are recognized on the balance sheet as right-of-use assets and short-term and long-term lease liabilities, as applicable. The Company has elected the practical expedient not to recognize leases on the balance with a term of twelve months or less. The Company’s leases consist of office and lab space and office equipment. All of the Company’s leases are classified as operating, and options to renew a lease are only included in the lease term to the extent those options are reasonably certain to be exercised. Additionally, the Company elected to apply the practical expedient not to separate lease and nonlease components for all leases. Operating lease liabilities and their corresponding ROU assets are initially recorded based on the present value of lease payments over the expected remaining lease term. The rate implicit in lease contracts is typically not readily determinable, and as a result, the Company utilizes its incremental borrowing rate to discount lease payments, which reflects the fixed rate at which the Company could borrow on a collateralized basis the amount of the lease payments, for a similar term, in a similar economic environment. To estimate its incremental borrowing rate, a credit rating applicable to the Company is estimated using a synthetic credit rating analysis since the Company does not currently have a rating agency-based credit rating. The adoption of ASC 842 resulted in the recognition of operating lease ROU assets and operating lease liabilities of $12.2 million and $22.8 million, respectively, on the Company’s condensed consolidated balance sheet, with the difference between the ROU asset and lease liability primarily attributable to unamortized lease incentives and deferred rent related to its lease for its corporate headquarters at 900 Middlesex Turnpike in Billerica, Massachusetts (the “900 Middlesex Turnpike Lease”). In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment. This ASU eliminates Step 2 from the goodwill impairment test. In addition, income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The Company adopted this ASU on January 1, 2020 with no material effect to its financial statements. In August 2018, the FASB issued ASU No. 2018‑13, “Fair Value Measurement (Topic 820), Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement”. This ASU removed the following disclosure requirements: (1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; (2) the policy for timing of transfers between levels; and (3) the valuation processes for Level 3 fair value measurements. Additionally, this update added the following disclosure requirements: (1) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and (2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. ASU 2018‑13 will be effective for fiscal years beginning after December 15, 2019 with early adoption permitted. The Company adopted this ASU on January 1, 2020 with no material effect to its financial statements. Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments — Credit Losses: Measurement of Credit Losses on Financial Instruments (ASU 2016-13), which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables and available-for-sale debt securities. The standard is effective for the Company beginning in the first quarter of 2021, with early adoption permitted. The Company is currently evaluating the expected impact of ASU 2016-13 on its financial statements. There have been no other material changes to the significant accounting policies and recent accounting pronouncements previously disclosed in the 2019 Annual Report on Form 10‑K.

- Definition

Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
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Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 954
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
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-URI http://asc.fasb.org/extlink&oid=84158767&loc=d3e18780-107790

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=116657188&loc=SL116659661-227067

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 45
-Paragraph 25
-URI http://asc.fasb.org/extlink&oid=116821951&loc=d3e32247-109318

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=116821951&loc=d3e32280-109318

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 05
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=65884525&loc=d3e40913-109327

+ Details

Revenue recognition (Tables)

3 Months Ended

Mar. 31, 2020

Revenue recognition

Schedule of disaggregated revenue


	Three Months Ended
	March 31, 2020
(in thousands)	NA		EMEA		Asia Pacific		Total
Product revenues
Instruments	$	1,753	$	726	$	1,209	$	3,688
Consumable and other products		2,924		2,704		517		6,145
Totals	$	4,677	$	3,430	$	1,726	$	9,833

Service and other revenues
Service-type warranties	$	748	$	379	$	52	$	1,179
Research services		3,667		82		538		4,287
Other services		231		60		5		296
Totals	$	4,646	$	521	$	595	$	5,762

Collaboration and license revenue
Collaboration and license revenue	$	122	$	10	$	—	$	132
Totals	$	122	$	10	$	—	$	132


	Three Months Ended
	March 31, 2019
(in thousands)	NA		EMEA		Asia Pacific		Total
Product revenues
Instruments	$	1,397	$	1,145	$	874	$	3,416
Consumable and other products		3,619		2,088		424		6,131
Totals	$	5,016	$	3,233	$	1,298	$	9,547

Service and other revenues
Service-type warranties	$	689	$	234	$	37	$	960
Research services		1,504		—		—		1,504
Other services		201		108		17		326
Totals	$	2,394	$	342	$	54	$	2,790

Collaboration and license revenue
Collaboration and license revenue	$	—	$	—	$	—	$	—
Totals	$	—	$	—	$	—	$	—

Schedule of changes in deferred revenue from contracts with customers

Changes in deferred revenue from contracts with customers were as follows (in thousands):


	Three Months Ended March 31, 2020
Balance at December 31, 2019	$	5,163
Deferral of revenue		1,850
Recognition of deferred revenue		(1,179)
Balance at March 31, 2020	$	5,834

Schedule of costs to obtain a contract

The change in the balance of costs to obtain a contract are as follows (in thousands):


	Three Months Ended March 31, 2020
Balance at December 31, 2019	$	335
Deferral of costs to obtain a contract		94
Recognition of costs to obtain a contract		(203)
Balance at March 31, 2020	$	226

Net loss per share (Tables)

3 Months Ended

Mar. 31, 2020

Net loss per share

Schedule of outstanding potentially dilutive securities that have been excluded in the calculation of diluted net loss per share


	March 31,
	2020	2019
Unvested restricted common stock and restricted stock units	561,786	419,716
Outstanding stock options	2,840,525	2,802,343
Outstanding warrants	10,000	76,041
Total	3,412,311	3,298,100

Fair value of financial instruments (Tables)

3 Months Ended

Mar. 31, 2020

Fair value of financial instruments

Schedule of fair value measurements

Fair value measurements as of March 31, 2020 are as follows (in thousands):


			Quoted prices				Significant
			in active		Significant other		unobservable
			markets		observable		inputs
Description	Total		(Level 1)		inputs (Level 2)		(Level 3)
Financial assets
Cash equivalents	$	91,916	$	91,916	$	—	$	—
Note receivable		150		—		—		150
	$	92,066	$	91,916	$	—	$	150

Fair value measurements as of December 31, 2019 are as follows (in thousands):


			Quoted prices				Significant
			in active		Significant other		unobservable
			markets		observable		inputs
Description	Total		(Level 1)		inputs (Level 2)		(Level 3)
Financial assets
Cash equivalents	$	109,155	$	109,155	$	—	$	—
Note receivable		150		—		—		150
	$	109,305	$	109,155		—	$	150

Inventory (Tables)

3 Months Ended

Mar. 31, 2020

Inventory

Summary of inventory

Inventory consists of the following (in thousands):


	March 31,		December 31,
	2020		2019
Raw materials	$	5,128	$	4,717
Work in process		2,619		2,573
Finished goods		3,645		3,173
Total	$	11,392	$	10,463

Other accrued expenses and other non-current liabilities (Tables)

3 Months Ended

Mar. 31, 2020

Other accrued expenses and other non-current liabilities

Summary of other accrued expenses

Other accrued expenses consist of the following (in thousands):


	March 31,		December 31,
	2020		2019
Accrued inventory	$	999	$	459
Accrued royalties		535		476
Accrued professional services		692		655
Accrued development costs		121		151
Accrued other		721		757
Total accrued expenses	$	3,068	$	2,498

Summary of other non-current liabilities

Other non-current liabilities consist of the following (in thousands):


	March 31,		December 31,
	2020		2019
Leasehold obligation incentive	$	—	$	7,572
Deferred rent		—		3,011
Deferred tax liabilities		2,498		2,816
Other		6		8
Total non-current liabilities	$	2,504	$	13,407

Warrants, stock-based compensation, stock options, restricted stock and restricted stock units (Tables)

3 Months Ended

Mar. 31, 2020

Warrants, stock-based compensation, stock options, restricted stock and restricted stock units

Summary of share-based compensation expense for all stock awards

Stock‑based compensation expense for all stock awards consists of the following (in thousands):


	Three Months Ended March 31,
	2020		2019
Cost of product revenue	$	36	$	17
Cost of service and other revenue		68		60
Research and development		242		168
Selling, general, and administrative		1,763		1,039
Total	$	2,109	$	1,284

Summary of stock option activity


		Weighted-average		Remaining contractual	Aggregate intrinsic value
	Options	exercise price		life (in years)	(in thousands)
Outstanding at December 31, 2019	2,507,062	$	14.41	7.58	$	24,870
Granted	428,271	$	27.16
Exercised	(63,074)	$	7.86
Cancelled	(31,734)	$	24.29
Outstanding at March 31, 2020	2,840,525	$	16.37	7.75	$	14,641
Vested and expected to vest at March 31, 2020	2,840,525	$	16.37	7.75	$	14,641
Exercisable at March 31, 2020	1,411,836	$	9.93	6.54	$	12,703

Summary of restricted stock units activity


		Weighted-average
		grant date
		fair value
	Shares	per share
Unvested RSUs as of December 31, 2019	370,123	$	20.48
Granted	210,074	$	27.36
Vested	(45,474)	$	18.92
Cancelled	(12,743)	$	26.89
Unvested RSUs as of March 31, 2020	521,980	$	23.22

Leases (Tables)

3 Months Ended

Mar. 31, 2020

Leases

Summary of the lease costs recognized under ASC 842


Operating leases (in thousands)	For the three months ended March 31, 2020
Lease Costs (1)
Operating lease costs	$	660
Total lease cost	$	660

Other information
Operating cash flows used for operating leases	$	407
Weighted average remaining lease term		10.3 years
Weighted average discount rate		9.73%

(1) Short-term lease costs and variable lease costs incurred by the Company for the three months ended March 31, 2020 were immaterial.

Schedule of future minimum commitments under ASC 842


Maturity of lease liabilities (in thousands)	As of March 31, 2020
Remainder 2020	$	1,696
2021		3,363
2022		3,435
2023		3,487
2024		3,557
2025 and thereafter		22,203
Total lease payments	$	37,741
Less: imputed interest		14,695
Total operating lease liabilities	$	23,046

Schedule of future minimum commitments under ASC 840


2020	$	2,081
2021		3,322
2022		3,396
2023		3,480
2024 and Forward		25,760
	$	38,039

Notes payable (Tables)

3 Months Ended

Mar. 31, 2020

Notes payable

Schedule of debt payment obligations due based on principal payments

As of March 31, 2020, debt payment obligations due based on principal payments are as follows (in thousands):


Remainder 2020	$	—
2021		7,688
	$	7,688

Business combinations (Tables)

3 Months Ended

Mar. 31, 2020

Schedule of fair value of assets acquired and liabilities assumed


	Three months ended
	March 31, 2019
Revenue (unaudited)	$	12,908
Pre-tax loss (unaudited)	$	(9,062)

UmanDiagnostics AB Acquisition

Schedule of fair value of consideration transferred

The following table summarizes the preliminary purchase price allocation, net of $1.2 million in cash and cash equivalents acquired (in thousands):


Purchase price:
Cash and stock paid	$	21,217
Cash and cash equivalents acquired		1,221
Purchase price, net		19,996

Assets (liabilities) acquired:
Accounts receivable	$	638
Inventory		1,680
Prepaids and other current assets		114
Property and equipment		33
Intangibles		13,450
Goodwill		8,111
Accounts payable		(20)
Accrued expense and other current liabilities		(871)
Deferred tax liabilities		(3,139)
Total	$	19,996

Goodwill and Acquired Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2020

Goodwill and Acquired Intangible Assets

Rollforward of goodwill balance

The following is a rollforward of the Company’s goodwill balance (in thousands):


	Goodwill
Balance as of December 31, 2019	$	9,353
Cumulative translation adjustment		(439)
Balance as of March 31, 2020	$	8,914

Summary of intangible assets

Acquired intangible assets as of March 31, 2020 consist of the following (in thousands):


		March 31, 2020
		Gross				Cumulative		Net		Weighted
	Estimated Useful	Carrying		Accumulated		Translation		Carrying		Average
	Life (in years)	Value		Amortization		Adjustment		Value		Life Remaining
Know-how	8.5	$	13,000	$	(1,149)	$	(738)	$	11,113	7.75
Developed technology	7		1,650		(815)		—		835	4.84
Customer relationships	8.5 - 10		1,360		(472)		(6)		882	7.83
Non-compete agreements	5.5		340		(51)		(18)		271	4.75
Trade names	3		50		(36)		—		14	0.84
Total		$	16,400	$	(2,523)	$	(762)	$	13,115

Acquired intangible assets as of December 31, 2019 consist of the following (in thousands):


		December 31, 2019
		Gross				Cumulative		Net		Weighted
	Estimated Useful	Carrying		Accumulated		Translation		Carrying		Average
	Life (in years)	Value		Amortization		Adjustment		Value		Life Remaining
Know-how	8.5	$	13,000	$	(767)	$	(99)	$	12,134	8.00
Developed technology	7		1,650		(737)		—		913	5.09
Customer relationships	8.5 - 10		1,360		(421)		(1)		938	8.08
Non-compete agreements	5.5		340		(34)		(2)		304	5.00
Trade names	3		50		(32)		—		18	1.09
Total		$	16,400	$	(1,991)	$	(102)	$	14,307

Schedule of future estimated amortization expense of acquired intangible assets

Future estimated amortization expense of acquired intangible assets as of March 31, 2020 is as follows (in thousands):


For the Years Ended December 31,	Estimated Amortization Expense
Remainder 2020	$	1,578
2021		2,013
2022		1,930
2023		1,848
2024		1,733
Thereafter		4,013
	$	13,115

Accumulated other comprehensive loss (Tables)

3 Months Ended

Mar. 31, 2020

Accumulated other comprehensive loss

Schedule of Accumulated Other Comprehensive Income (Loss)


			Accumulated
	Cumulative		Other
	Translation		Comprehensive
	Adjustment		Loss
Balance - December 31, 2019	$	(153)	$	(153)
Current period accumulated other comprehensive loss		(1,047)		(1,047)
Balance - March 31, 2020	$	(1,200)	$	(1,200)

Organization and operations (Details) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended
	Aug. 08, 2019	Jun. 05, 2019	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Aug. 01, 2019	Jul. 01, 2019	Mar. 19, 2019
Initial Public Offering
Common stock, authorized shares			120,000,000		120,000,000
Common stock, par value			$ 0.001		$ 0.001
Common stock, aggregate offering price			$ 28		$ 28
Accumulated deficit			(227,854)		(216,244)
Net loss			(11,610)	$ (9,405)
Unrestricted cash and cash equivalents			96,359	$ 33,972	$ 109,155
Underwritten public offering
Initial Public Offering
Shares issued	2,700,000
Common stock, par value	$ 0.001
Gross Proceeds From Issuance Of Common Stock	$ 69,000
stock issuance cost	4,500
Net proceeds from issuance of common shares	$ 64,500
At-the-market offering
Initial Public Offering
Shares issued		2,200,000
Shares issued price (in dollars per share)		$ 22.73
Common stock, par value								$ 0.001
Gross Proceeds From Issuance Of Common Stock		$ 49,700
stock issuance cost		1,700
Net proceeds from issuance of common shares		$ 48,000
At-the-market offering \| Maximum
Initial Public Offering
Common stock, aggregate offering price								$ 50,000
UmanDiagnostics AB Acquisition
Initial Public Offering
Capital stock shares outstanding, percent						95.00%	5.00%
Net loss			$ 100

Significant accounting policies (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Significant accounting policies
Operating Lease, Right-of-Use Asset	$ 12,221
Operating Lease, Liability, Noncurrent	$ 22,741

Revenue recognitions - Customers (Details)	3 Months Ended
Revenue recognitions - Customers (Details)	Mar. 31, 2020
Minimum
Revenue recognition
Period of payment	30 days
Maximum
Revenue recognition
Period of payment	45 days

Revenue recognition - Disaggregated revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue recognition
Revenue	$ 15,727	$ 12,337
Product revenue
Revenue recognition
Revenue	9,833	9,547
Product revenue \| NA
Revenue recognition
Revenue	4,677	5,016
Product revenue \| EMEA
Revenue recognition
Revenue	3,430	3,233
Product revenue \| Asia Pacific
Revenue recognition
Revenue	1,726	1,298
Instruments
Revenue recognition
Revenue	3,688	3,416
Instruments \| NA
Revenue recognition
Revenue	1,753	1,397
Instruments \| EMEA
Revenue recognition
Revenue	726	1,145
Instruments \| Asia Pacific
Revenue recognition
Revenue	1,209	874
Consumable and other products
Revenue recognition
Revenue	6,145	6,131
Consumable and other products \| NA
Revenue recognition
Revenue	2,924	3,619
Consumable and other products \| EMEA
Revenue recognition
Revenue	2,704	2,088
Consumable and other products \| Asia Pacific
Revenue recognition
Revenue	517	424
Service and other revenue
Revenue recognition
Revenue	5,762	2,790
Service and other revenue \| NA
Revenue recognition
Revenue	4,646	2,394
Service and other revenue \| EMEA
Revenue recognition
Revenue	521	342
Service and other revenue \| Asia Pacific
Revenue recognition
Revenue	595	54
Service-type warranties
Revenue recognition
Revenue	1,179	960
Service-type warranties \| NA
Revenue recognition
Revenue	748	689
Service-type warranties \| EMEA
Revenue recognition
Revenue	379	234
Service-type warranties \| Asia Pacific
Revenue recognition
Revenue	52	37
Research services
Revenue recognition
Revenue	4,287	1,504
Research services \| NA
Revenue recognition
Revenue	3,667	1,504
Research services \| EMEA
Revenue recognition
Revenue	82
Research services \| Asia Pacific
Revenue recognition
Revenue	538
Other services
Revenue recognition
Revenue	296	326
Other services \| NA
Revenue recognition
Revenue	231	201
Other services \| EMEA
Revenue recognition
Revenue	60	108
Other services \| Asia Pacific
Revenue recognition
Revenue	5	$ 17
Collaboration and license revenue
Revenue recognition
Revenue	132
Collaboration and license revenue \| NA
Revenue recognition
Revenue	122
Collaboration and license revenue \| EMEA
Revenue recognition
Revenue	$ 10

Revenue recognition - Future performance obligations (Details) - USD ($) $ in Millions	Mar. 31, 2020	Mar. 31, 2019
Transaction Price Allocated to Future Performance Obligations
Amount of transaction price allocated to performance obligations	$ 5.8	$ 5.9
Service-type warranties and research services
Transaction Price Allocated to Future Performance Obligations
Amount of transaction price allocated to performance obligations	5.8
Undelivered licenses of intellectual property
Transaction Price Allocated to Future Performance Obligations
Amount of transaction price allocated to performance obligations	1.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01
Transaction Price Allocated to Future Performance Obligations
Amount of transaction price allocated to performance obligations	$ 5.4
Revenue recognition period for remaining performance obligation	12 months

Revenue recognition - Changes in deferred revenue from contracts with customers (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($)
Changes in deferred revenue from contracts with customers
Balance at beginning of period	$ 5,163
Deferral of revenue	1,850
Recognition of deferred revenue	(1,179)
Balance at end of period	$ 5,834

Revenue recognition - Costs to obtain a contract (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($)
Change in the balance of costs to obtain a contract
Balance at beginning of period	$ 335
Deferral of costs to obtain a contract	94
Recognition of costs to obtain a contract	(203)
Balance at end of period	$ 226

Revenue recognition - Practical expedients (Details)	3 Months Ended
Revenue recognition - Practical expedients (Details)	Mar. 31, 2020
Revenue recognition
Revenue, Practical Expedient, Financing Component [true false]	true
Revenue, Remaining Performance Obligation, Optional Exemption, Performance Obligation [true false]	true

Net loss per share (Details) - shares	3 Months Ended
Net loss per share (Details) - shares	Mar. 31, 2020	Mar. 31, 2019
Net loss per share
Number of dilutive securities excluded in the calculation of diluted net loss per share	3,412,311	3,298,100
Common stock
Net loss per share
Obligation to issue warrants, in shares	93,341	93,341
Unvested restricted common stock and restricted stock units
Net loss per share
Number of dilutive securities excluded in the calculation of diluted net loss per share	561,786	419,716
Outstanding stock options
Net loss per share
Number of dilutive securities excluded in the calculation of diluted net loss per share	2,840,525	2,802,343
Outstanding warrants
Net loss per share
Number of dilutive securities excluded in the calculation of diluted net loss per share	10,000	76,041

Fair value of financial instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Cash equivalents	$ 91,916	$ 109,155
Note receivable	150	150
Total	92,066	109,305
Level 1
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Cash equivalents	91,916	109,155
Total	91,916	109,155
Level 3
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Note receivable	150	150
Total	$ 150	$ 150

Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Inventory
Raw Materials	$ 5,128	$ 4,717
Work in process	2,619	2,573
Finished goods	3,645	3,173
Total	$ 11,392	$ 10,463

Investments (Details) - USD ($)	3 Months Ended
Investments (Details) - USD ($)	Mar. 31, 2020	Sep. 30, 2018	Sep. 30, 2016
Schedule of Cost-method Investments [Line Items]
Impairment on investments	$ 0
Minority interest in preferred stock in privately held company
Schedule of Cost-method Investments [Line Items]
Purchase price of investment			$ 300,000
Investment in a convertible notes of a privately held company
Schedule of Cost-method Investments [Line Items]
Investment principle amount		$ 200,000

Other accrued expenses and other non-current liabilities - Other accrued expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Other accrued expenses and other non-current liabilities
Accrued inventory	$ 999	$ 459
Accrued royalties	535	476
Accrued professional services	692	655
Accrued development costs	121	151
Accrued other	721	757
Total accrued expenses	$ 3,068	$ 2,498

Other accrued expenses and other non-current liabilities - Other non-current liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Jan. 01, 2020	Dec. 31, 2019
Other non-current liabilities
Leasehold obligation incentive		$ 7,600	$ 7,572
Deferred Rent		$ 3,000	3,011
Deferred tax liabilities	$ 2,498		2,816
Other	6		8
Total non-current liabilities	$ 2,504		$ 13,407

Warrants, stock-based compensation, stock options, restricted stock and restricted stock units - Warrants (Details)	3 Months Ended
	Mar. 31, 2020 shares
Number outstanding
Issued (in shares)	0
Outstanding warrants
Number outstanding
Outstanding at the end of the period (in shares)	10,000

Warrants, stock-based compensation, stock options, restricted stock and restricted stock units - Share-based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Share-based compensation expense	$ 2,109	$ 1,284
Cost of product revenue
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Share-based compensation expense	36	17
Cost of service and other revenue
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Share-based compensation expense	68	60
Research and development
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Share-based compensation expense	242	168
General and administrative
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Share-based compensation expense	$ 1,763	$ 1,039

Warrants, stock-based compensation, stock options, restricted stock and restricted stock units - Stock-based award plans (Details) - shares	Jan. 01, 2019	Mar. 31, 2020	Dec. 31, 2019
2007 Plan
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Common stock available for future awards (in shares)		0
2017 Plan
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Shares authorized under the plan (in shares)		1,042,314
Shares available for grant under the plan (in shares)		802,135
Annual increase in the shares available for grant under the plan (as a percent of shares of common stock outstanding)		4.00%
Increase in the shares available for grant under the plan (in shares)	1,126,172
2017 ESPP
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Shares available for grant under the plan (in shares)		871,422
Annual increase in the shares available for grant under the plan (as a percent of shares of common stock outstanding)		1.00%
Increase in the shares available for grant under the plan (in shares)	281,543
Outstanding stock options
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Options outstanding (in shares)		2,840,525	2,507,062
Outstanding stock options \| 2007 Plan
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Options outstanding (in shares)		1,178,538
Outstanding stock options \| 2017 Plan
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Options outstanding (in shares)		1,661,987
Shares authorized under the plan (in shares)		2,490,290
Unvested restricted stock units \| 2017 Plan
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Options outstanding (in shares)		521,980

Warrants, stock-based compensation, stock options, restricted stock and restricted stock units - Stock options (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Aggregate intrinsic value
Share-based compensation expense	$ 2,109	$ 1,284
Outstanding stock options
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Options expiration period (in years)	10 years
Number outstanding
Outstanding at the beginning of the period (in shares)	2,507,062
Granted (in shares)	428,271
Exercised (in shares)	(63,074)
Cancelled or forfeited (in shares)	(31,734)
Outstanding at the end of the period (in shares)	2,840,525		2,507,062
Vested and expected to vest at the end of the period (in shares)	2,840,525
Exercisable at the end of the period (in shares)	1,411,836
Weighted-average exercise price
Outstanding at the beginning of the period (in dollars per share)	$ 14.41
Granted (in dollars per share)	27.16
Exercised (in dollars per share)	7.86
Cancelled or forfeited (in dollars per share)	24.29
Outstanding at the end of the period (in dollars per share)	16.37		$ 14.41
Vested and expected to vest at the end of the period (in dollars per share)	16.37
Exercisable at the end of the period (in dollars per share)	$ 9.93
Remaining contractual life
Outstanding (in years)	7 years 9 months		7 years 6 months 29 days
Vested and expected to vest at the end of the period (in years)	7 years 9 months
Exercisable at the end of the period (in years)	6 years 6 months 15 days
Aggregate intrinsic value
Outstanding at the beginning of the period	$ 24,870
Exercised	1,100	$ 1,200
Outstanding at the end of the period	14,641		$ 24,870
Vested and expected to vest at the end of the period	14,641
Exercisable at the end of the period	$ 12,703
Weighted-average fair value of options granted	$ 11.82	$ 7.90
Share-based compensation expense	$ 1,100	$ 700
Intrinsic value of stock options exercised	$ 1,100	$ 1,200
Outstanding stock options \| Subject to a four year vesting schedule with 25% vesting on the first anniversary and the remaining vesting ratably on a monthly basis over the remaining three years
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Vesting period (in years)	4 years
Vesting percentage 1 (as a percent)	25.00%
Outstanding stock options \| Subject to vesting with 50% vesting on December 31, 2018 and December 31, 2019
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Vesting period (in years)	3 years
Vesting percentage 1 (as a percent)	75.00%

Warrants, stock-based compensation, stock options, restricted stock and restricted stock units - Restricted stock (Details) - Restricted stock - shares	1 Months Ended		3 Months Ended
	Jan. 31, 2015	Dec. 31, 2014	Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			0
2007 Plan \| Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)		78,912
Vesting period (in years)		4 years
2007 Plan \| Executive
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	781,060
Vesting period (in years)	4 years
2007 Plan \| Executive \| Subject to a four year vesting schedule with 25% vesting on the first anniversary and the remaining vesting ratably on a monthly basis over the remaining three years
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage 1 (as a percent)	25.00%
2007 Plan \| Executive \| Subject to vesting with 50% vesting on December 31, 2018 and December 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
Vesting percentage 1 (as a percent)	75.00%

Warrants, stock-based compensation, stock options, restricted stock and restricted stock units - Restricted stock units (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Weighted-average grant date fair value per share
Share-based compensation expense	$ 2,109	$ 1,284
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted common stock issued (in shares)	210,074
Number of restricted stock units
Unvested restricted common stock at the beginning of the period (in shares)	370,123
Granted (in shares)	210,074
Vested (in shares)	(45,474)
Cancelled (in shares)	(12,743)
Unvested restricted common stock at the end of the period (in shares)	521,980
Weighted-average grant date fair value per share
Unvested restricted common stock at the beginning of the period (in dollars per share)	$ 20.48
Granted (in dollars per share)	27.36
Vested (in dollars per share)	18.92
Cancelled (in dollars per share)	26.89
Unvested restricted common stock at the end of the period (in dollars per share)	$ 23.22
Share-based compensation expense	$ 900	$ 500
Total unrecognized compensation cost related to unvested stock awards	$ 11,400
Period of recognition of unrecognized compensation cost	3 years 26 days
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted common stock issued (in shares)	0
Number of restricted stock units
Granted (in shares)	0
Unvested restricted common stock at the end of the period (in shares)	39,806
Weighted-average grant date fair value per share
Unvested restricted common stock at the end of the period (in dollars per share)	$ 3.12
2017 Plan \| Restricted stock units \| Subject to a four year vesting schedule with 25% vesting on the first anniversary and the remaining vesting ratably on a monthly basis over the remaining three years
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted common stock issued (in shares)	191,867
Vesting period 1	4 years
Vesting period 2	3 years
Vesting percentage 1 (as a percent)	25.00%
Vesting percentage 2 (as a percent)	75.00%
Number of restricted stock units
Granted (in shares)	191,867
2017 Plan \| Restricted stock units \| Vesting on December 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted common stock issued (in shares)	15,890
Number of restricted stock units
Granted (in shares)	15,890
2017 Plan \| Restricted stock units \| Vested immediately upon grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted common stock issued (in shares)	2,317
Number of restricted stock units
Granted (in shares)	2,317

Leases (Details) $ in Thousands		3 Months Ended
Leases (Details) $ in Thousands	Apr. 01, 2019 USD ($) item ft²	Mar. 31, 2020 USD ($)
Operating Lease, Right-of-Use Asset		$ 12,221
Operating Lease, Liability, Noncurrent		22,741
Lease for facilities in Billerica, Massachusetts
Term of operating lease	137 months
Square footage of office and laboratory space \| ft²	92,000
Drawing capacity	$ 1,000
Landlord Contribution Towards Tenant Improvements	$ 8,200
Lease Agreement Number Of Options To Extend \| item	2
Lease Agreement Lease Extension Term	5 years
Deferred rent expense		3,000
Lease Obligation Incentive		7,600
Tristeyagen Umea Lease [Member]
Operating Lease, Right-of-Use Asset		100
Operating Lease, Liability, Noncurrent		$ 100

Leases - lease costs recognized (Details) $ in Thousands	3 Months Ended
Leases - lease costs recognized (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Lease Costs
Operating lease costs	$ 660
Total lease cost	660
Operating cash flows used for operating leases	$ 407
Weighted average remaining lease term	10 years 3 months 18 days
Weighted average discount rate	9.73%

Leases - Future minimum commitments (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Leases
Remainder 2020	$ 1,696
2021	3,363
2022	3,435
2023	3,487
2024	3,557
2025 and thereafter	22,203
Total lease payments	37,741
Less: imputed interest	14,695
Operating Lease, Liability	$ 23,046

Leases - Non-cancelable operating leases (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Leases
2020	$ 2,081
2021	3,322
2022	3,396
2023	3,480
2024 and Forward	25,760
Total	$ 38,039

Commitments and contingencies - License agreements and Lease commitments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Other licenses
License agreements
Royalty expense	$ 0	$ 100
Tufts \| License agreements
License agreements
Royalty expense	$ 200	$ 200

Commitments and contingencies - Development and supply agreement and Legal contingencies (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($) $ / shares shares
Commitments and contingencies
Amount payable to counterparty	$ 11.7
Period to purchase minimum number of commercial units	7 years
Fee payable on shortfall of commercial units purchase	$ 9.1
Issuance of supply warrants on termination of agreement, number (in shares) \| shares	93,341
Issuance of supply warrants on termination of agreement, value per share (in dollars per share) \| $ / shares	$ 0.003214

Notes payable (Details) $ in Thousands				1 Months Ended	3 Months Ended
Notes payable (Details) $ in Thousands	Mar. 02, 2020 USD ($)	Apr. 15, 2019 installment	Apr. 14, 2014	Aug. 31, 2018 USD ($)	Mar. 31, 2020 USD ($)	Oct. 31, 2018 USD ($)
Long Term Debt
End Of Term Fee					$ 50,000
Loan principal payment installment \| installment		5
Loan agreement
Long Term Debt
Additional amounts available to borrow					$ 0
Loan agreement \| Minimum
Long Term Debt
Interest rate (as a percent)			8.00%
Amendment 5 to loan agreement
Long Term Debt
Term fee	$ 100			$ 100
Cost incurred upon execution				$ 50
Amendment 6 to loan agreement
Long Term Debt
Certificate of deposit associated with the lease						$ 1,000
Prime rate \| Loan agreement
Long Term Debt
Margin on variable interest rate (as a percent)			(5.25%)

Notes payable - Debt payment obligations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Debt payment obligations due based on principal payments
2021	$ 7,688
Debt payment obligations	7,688
Non-cash interest expense	$ 100	$ 100

Collaboration and license arrangements (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Collaboration and license arrangements
Revenue	$ 15,727	$ 12,337
Deferred revenue			$ 1,700
Increase to deferred revenue	671	$ 45
Joint development and license agreement
Collaboration and license arrangements
Deferred revenue	$ 100

Employee benefit plans (Details) - USD ($) $ in Millions	3 Months Ended
Employee benefit plans (Details) - USD ($) $ in Millions	Mar. 31, 2020	Mar. 31, 2019
Employee benefit plans
Contribution made to the 401 (k) Plan	$ 0.1	$ 0.1

Business combinations (Details) - USD ($) $ in Thousands		3 Months Ended		12 Months Ended
Business combinations (Details) - USD ($) $ in Thousands	Aug. 01, 2019	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Jul. 01, 2019
Assets (liabilities) acquired:
Goodwill		$ 8,914		$ 9,353
Revenue		15,727	$ 12,337
Net income		(11,610)	(9,405)
Revenue (unaudited)			12,908
Pre-tax loss (unaudited)			(9,062)
UmanDiagnostics AB Acquisition
Fair value of consideration transferred:
Cash	$ 15,700
Common stock shares consideration	191,152
Common stock	$ 5,500
Capital stock shares outstanding, percent	95.00%				5.00%
Cash and stock paid	$ 21,217
Cash and cash equivalents acquired	1,221
Purchase price, net	19,996
Assets (liabilities) acquired:
Accounts receivable	638
Inventory	1,680
Prepaids and other current assets	114
Property and equipment	33
Intangibles	13,450
Goodwill	8,111
Accounts payable	(20)
Accrued expense and other current liabilities	(871)
Deferred tax liabilities	(3,139)
Total	$ 19,996
Revenue		400
Net income		100
Transaction costs		$ 0	$ 0	$ 1,900

Goodwill and Acquired Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Rollforward of goodwill balance
Balance as of beginning of period	$ 9,353
Cumulative translation adjustment	(439)
Balance as of end of period	8,914		$ 9,353
Purchased intangible assets
Gross Carrying Value	16,400		16,400
Accumulated Amortization	(2,523)		(1,991)
Cumulative Translation Adjustment	(762)		(102)
Net Carrying Value	13,115		$ 14,307
Amortization expense	500	$ 200
Estimated amortization expense
Remainder of 2020	1,578
2021	2,013
2022	1,930
2023	1,848
2024	1,733
Thereafter	4,013
Estimated Amortization Expenses	13,115
UmanDiagnostics AB Acquisition
Rollforward of goodwill balance
Goodwill acquired	$ 13,500
Purchased intangible assets
Estimated Useful Life	8 years 4 months 24 days
Developed technology
Purchased intangible assets
Estimated Useful Life	7 years		7 years
Gross Carrying Value	$ 1,650		$ 1,650
Accumulated Amortization	(815)		(737)
Net Carrying Value	$ 835		$ 913
Weighted average life remaining	4 years 10 months 2 days		5 years 1 month 2 days
Customer relationships
Purchased intangible assets
Estimated Useful Life	8 years 6 months
Gross Carrying Value	$ 1,360		$ 1,360
Accumulated Amortization	(472)		(421)
Cumulative Translation Adjustment	(6)		(1)
Net Carrying Value	$ 882		$ 938
Weighted average life remaining	7 years 9 months 29 days		8 years 29 days
Customer relationships \| UmanDiagnostics AB Acquisition
Rollforward of goodwill balance
Goodwill acquired	$ 100
Trade names
Purchased intangible assets
Estimated Useful Life	3 years		3 years
Gross Carrying Value	$ 50		$ 50
Accumulated Amortization	(36)		(32)
Net Carrying Value	$ 14		$ 18
Weighted average life remaining	10 months 2 days		1 year 1 month 2 days
Know How
Purchased intangible assets
Estimated Useful Life	8 years 6 months		8 years 6 months
Gross Carrying Value	$ 13,000		$ 13,000
Accumulated Amortization	(1,149)		(767)
Cumulative Translation Adjustment	(738)		(99)
Net Carrying Value	$ 11,113		$ 12,134
Weighted average life remaining	7 years 9 months		8 years
Know How \| UmanDiagnostics AB Acquisition
Rollforward of goodwill balance
Goodwill acquired	$ 13,000
Noncompete Agreements
Purchased intangible assets
Estimated Useful Life	5 years 6 months		5 years 6 months
Gross Carrying Value	$ 340		$ 340
Accumulated Amortization	(51)		(34)
Cumulative Translation Adjustment	(18)		(2)
Net Carrying Value	$ 271		$ 304
Weighted average life remaining	4 years 9 months		5 years
Noncompete Agreements \| UmanDiagnostics AB Acquisition
Rollforward of goodwill balance
Goodwill acquired	$ 400
Maximum \| Customer relationships
Purchased intangible assets
Estimated Useful Life	10 years		10 years
Minimum \| Customer relationships
Purchased intangible assets
Estimated Useful Life	8 years 6 months		8 years 6 months

Related party transactions (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Related party transactions
Deferred revenue			$ 1.7
Joint development and license agreement
Related party transactions
Deferred revenue	$ 0.1
Tufts \| License Agreement
Related party transactions
Royalty expense	0.2	$ 0.2
Harvard University
Related party transactions
Related party revenue	$ 0.1	$ 0.1

Accumulated other comprehensive loss (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Current period accumulated other comprehensive loss	$ (1,047)
Cumulative Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(153)
Current period accumulated other comprehensive loss	(1,047)
Ending Balance	(1,200)
Accumulated other comprehensive loss [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(153)
Current period accumulated other comprehensive loss	(1,047)
Ending Balance	$ (1,200)