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目錄
美國
證券交易委員會
華盛頓特區20549
表格 10-Q
☒ 根據1934年證券交易法第13或15(d)條，進行季度報告。
截至2024年6月30日季度結束 2024年9月30日
或
☐ 根據1934年證券交易法第13條或第15(d)條規定的過渡報告。
委員會檔案編號： 001-35092
精密科學公司
（依憑章程所載的完整登記名稱）
特拉華州02-0478229
(依據所在地或其他管轄區)
的註冊地或組織地點)
(國稅局雇主識別號碼)
識別號碼)
5505 Endeavor Lane, 麥迪遜 威斯康辛州
53719
(總部辦公地址)（郵政編碼）
(608) 535-8815 （註冊者的電話號碼，包括區號)
根據法案第12(b)條註冊的證券：
每個類別的標題交易標的每個註冊的交易所名稱
每股普通股0.01美元EXAS納斯達克股票交易所 LLC
試以勾選符號表示該登記人：(1) 在過去12個月（或該登記人因要求提交此類報告而有較短時期的情況時）已經提交證券交易所法案1934年第13條或第15(d)條要求提交的所有報告，並且(2) 已受上述報告要求制度約束達90天。 是 ☒ 沒有 ☐
請用勾選標記表示，是否在過去12個月（或在受要求提交此類檔案的更短期間內）內，註冊者已根據S-t規則405條（本章節第232.405條）的要求，提交了每一個交互數據檔案。 是 ☒ 沒有 ☐
請載明檢查標記，公司是否為大型加速披露人、加速披露人、非加速披露人、小型報告公司或新興成長公司。請於「交易所法案」第1202條中查閱「大型加速披露人」、「加速披露人」、「小型報告公司」和「新興成長公司」的定義。
大型加速歸檔人☒加速披露人☐
非加速歸檔人☐小型報告公司☐
新興成長型公司 ☐
如果申報人是新興成長型企業，在符合交易所法案第13(a)條所提供的任何新修訂財務會計準則時，已選擇不使用延長過渡期遵守。請選擇適用的核對標記。. ☐
勾選表示公司是否為外殼公司（根據交易所法規第120億2條規定）。是 ☐ 沒有 ☒
截至2024年11月4日，申報人持有 185,076,293 截至2024年7月30日，申報人持有184,769,862股普通股。


精密科學公司
指数
頁面
數字

2
目錄
精密科學公司
縮短的合併財務報表
(金額以千為單位，除股份資料外-未經核實)
第一部分-財務信息
2024年9月30日2023年12月31日
資產
流動資產:
現金及現金等價物$588,830 $605,378 
有價證券432,301 172,266 
應收帳款淨額264,819 203,623 
存貨136,987 127,475 
預付費用及其他流動資產110,180 85,627 
全部流動資產1,533,117 1,194,369 
長期資產:
不動產、廠房及設備淨值690,332 698,354 
營運租賃權使用資產122,452 143,708 
商譽2,367,450 2,367,120 
無形資產，扣除累計攤銷1,864,399 1,890,396 
其他長期資產，淨額170,821 177,387 
資產總額$6,748,571 $6,471,334 
負債及股東權益
流動負債：
應付賬款$97,653 $78,816 
應付負債313,997 341,683 
營運租賃負債，流動部分27,170 29,379 
可轉換票據，淨值，當前部分
249,038 — 
債務，當前部分— 50,000 
其他流動負債35,804 14,823 
流動負債合計723,662 514,701 
長期負債：
Convertible notes, net, less current portion
2,319,490 2,314,276 
其他長期負債332,213 335,982 
營業租賃負債，扣除當前部分162,695 161,070 
總負債3,538,060 3,326,029 
承諾和或有事項（註13）
股東權益：
優先股，面額$0.01，授權股數為5,000,000股，發行且流通股數為截至2024年6月30日和2023年12月31日之184,668,188股和181,364,180股。0.01 面值授權—5,000,000；已發行並流通—無 於2024年9月30日及2023年12月31日的流通股數
— — 
0.010.01 面值授權—400,000,000發行並流通股份 -185,054,760 和 181,364,180 2024年9月30日及2023年12月31日的股份
1,852 1,815 
資本公積額額外增資6,837,476 6,611,237 
其他綜合收益累計額
4,630 1,428 
累積虧損(3,633,447)(3,469,175)
股東權益總額3,210,511 3,145,305 
負債和股東權益總額$6,748,571 $6,471,334 
相關附註是這些基本報表的一個不可或缺的部分。
3
目錄
精密科學公司
損益綜合表簡明合併報表
(以千為單位，除每股資料外 - 未經審計)
截至9月30日的三個月截至9月30日的九個月
2024202320242023
營業收入$708,655 $628,338 $2,045,443 $1,852,881 
營業費用
銷售成本（不包括取得無形資產攤銷）196,070 168,526 556,019 482,383 
研發費用100,101 111,446 331,593 310,960 
銷售和市場推廣費用194,653 173,159 572,288 536,613 
總務與行政217,201 217,393 662,174 672,653 
取得無形資產攤銷24,435 22,992 71,057 68,849 
長期資產減損18,698 — 31,296 621 
營業費用總計751,158 693,516 2,224,427 2,072,079 
其他營業收益3,100 72,027 6,632 72,027 
營業利益（損失）(39,403)6,849 (172,352)(147,171)
其他收益（費用）
投資收益淨額
11,582 2,065 29,596 7,383 
利息費用
(9,607)(7,871)(17,439)(11,582)
其他收益（費用）合計1,975 (5,806)12,157 (4,199)
稅前凈利（損失）(37,428)1,043 (160,195)(151,370)
所得稅支出
(808)(249)(4,077)(3,013)
凈利潤（損失）$(38,236)$794 $(164,272)$(154,383)
每股凈收益（虧損）—基本$(0.21)$0.00 $(0.89)$(0.86)
每股稀釋後凈利潤（損失） $(0.21)$0.00 $(0.89)$(0.86)
基本每股普通股份平均流通數184,795 180,649 183,823 179,817
稀釋每股普通股份平均流通數184,795 184,075 183,823 179,817 
隨附說明是這些簡明合併財務報表的一部分。
4
目錄
精密科學公司
壓縮綜合損失陳述
（金額以千爲單位-未經審計）
截至9月30日的三個月截至9月30日的九個月
2024202320242023
淨收益（虧損）
$(38,236)$794 $(164,272)$(154,383)
扣除稅款的其他綜合收益（虧損）：
可供出售投資的未實現收益
3,700 423 2,775 4,327 
外幣調整
1,873 (1,235)427 (626)
綜合損失$(32,663)$(18)$(161,070)$(150,682)
隨附說明是這些簡明合併財務報表的一部分。
5
目錄
精密科學公司
股東權益的簡化合並報表
(金額以千計，除每股數據外 - 未經審計)
普通股資本公積金
累計其他綜合收益（損失）
累計赤字股東權益合計
普通股數量
$0.01
票面價值
2024年1月1日餘額181,364,180 $1,815 $6,611,237 $1,428 $(3,469,175)$3,145,305 
行使普通股期權，扣除用於支付稅款的股份71,537 1 (1,409)— — (1,408)
發行普通股用以結算限制性股票獎勵，扣除用於支付稅款的股份1,792,087 17 (61)— — (44)
發行普通股以籌集公司2023年401(k)匹配基金
617,384 6 40,544 — — 40,550 
股票補償費用— — 60,370 — — 60,370 
淨損失— — — — (110,228)(110,228)
其他綜合損失
— — — (1,927)— (1,927)
2024 年 3 月 31 日餘額183,845,188 $1,839 $6,710,681 $(499)$(3,579,403)$3,132,618 
行使普通股期權，扣除用於支付稅款的股份8,184 1 42 — — 43 
在扣除用於支付稅款的股份後，發行普通股以結算限制股股票獎勵210,590 2 (6)— — (4)
股票補償費用— — 56,555 — — 56,555 
購買員工股票購買計劃的股份604,226 6 19,396 — — 19,402 
淨損失— — — — (15,808)(15,808)
其他綜合損失
— — — (444)— (444)
2024年6月30日結餘184,668,188 $1,848 $6,786,668 $(943)$(3,595,211)$3,192,362 
行使普通股期權後，在扣除用於支付稅款的股份的基礎上
79,871 1 2,131 — — 2,132 
在扣除用於支付稅款的股份後，發行普通股以結算限制股股票獎勵
306,701 3 (80)— — (77)
股票補償費用— — 48,757 — — 48,757 
淨損失
— — — — (38,236)(38,236)
其他綜合收益
— — — 5,573 — 5,573 
2024年9月30日餘額185,054,760 $1,852 6,837,476 $4,630 (3,633,447)$3,210,511 

6
目錄
精密科學公司
股東權益的簡化合並報表
（金額以千爲單位，除股份數據外均爲未經審計）
普通股股本融資額外支付
累計其他綜合收益（損失）
累計赤字股東權益合計
普通股數量
$0.01
票面價值
2023年1月1日的餘額177,925,631 $1,780 $6,311,644 $(5,236)$(3,265,026)$3,043,162 
行使普通股期權，扣除爲稅款而扣留的股份88,228 1 963 — — 964 
發行普通股以結算受限制股票獎勵，扣除爲稅款而扣留的股份1,299,071 13 (13)— — — 
發行普通股以爲公司的2022年401(k)匹配提供基金517,215 5 35,072 — — 35,077 
股票補償費用— — 49,139 — — 49,139 
淨損失— — — — (74,151)(74,151)
其他綜合收益
— — — 3,517 — 3,517 
2023年3月31日的結存179,830,145 $1,799 $6,396,805 $(1,719)$(3,339,177)$3,057,708 
行使普通股期權，扣除爲稅款而扣留的股份
36,728 1 851 — — 852 
解除限制股股票獎勵結算後發行普通股，扣除用於支付稅款的股份134,002 1 (1)— — — 
發行普通股以資助公司的2022年401(k)匹配計劃335 — 23 — — 23 
股票補償費用— — 61,725 — — 61,725 
購買員工股票購買計劃股份544,453 5 16,339 — — 16,344 
淨損失— — — — (81,026)(81,026)
其他綜合收益— — — 996 — 996 
2023年6月30日，餘額180,545,663 $1,806 $6,475,742 $(723)$(3,420,203)$3,056,622 
行使普通股期權，扣除用於支付稅款的股份
51,262 1 1,076 — — 1,077 
在扣除用於支付稅款的股份後，按限制性股票獎勵的結算髮行普通股
217,482 2 (2)— — — 
股票補償費用— — 61,871 — — 61,871 
用於業務合併發行普通股— — 1,675 — — 1,675 
淨收入— — — — 794 794 
其他綜合損失
— — — (812)— (812)
2023年9月30日餘額180,814,407 $1,809 $6,540,362 $(1,535)$(3,419,409)$3,121,227 
隨附說明是這些簡明合併財務報表的一部分。
7
目錄
精密科學公司
簡明的綜合現金流量表
（金額以千爲單位-未經審計）
截至9月30日的九個月
20242023
經營活動現金流量：
淨損失$(164,272)$(154,383)
用於調節淨虧損至經營活動現金流量淨額的調整項目：
折舊費用90,655 83,587 
非流動和流動權益證券的減值損失
1,772 10,264 
遞延所得稅費用
1,827 (279)
以股票爲基礎的報酬計劃165,682 172,735 
轉換票據結算淨收益(10,254)(10,324)
取得的無形資產攤銷71,057 68,849 
開多的資產減值31,296 621 
資產出售的待價考慮再計量
(6,632)(68,900)
待價考慮責任再計量(2,326)(13,051)
非現金租賃費用20,645 20,918 
其他(1,437)3,530 
資產和負債變動：
2,687,823 (61,410)(40,306)
114,467 (9,516)(13,074)
經營租賃負債(19,345)(19,741)
應付賬款及應計費用38,258 51,084 
其他6,358 (3,686)
其他負債11,115 (1,274)
經營活動產生的現金流量淨額
163,473 86,570 
投資活動現金流量：
購買有市場流通的證券(405,385)(75,096)
市場可買證券的到期兌現和出售150,916 328,054 
購買固定資產(99,673)(89,268)
業務組合，扣除已收取現金的淨額— (50,000)
資產收購，扣除現金收購
(45,000)— 
購買非流動市場證券的支付
(916)(6,290)
非流動證券投資的銷售
— 9,296 
其他投資活動(225)(250)
投資活動產生的淨現金流量
(400,283)116,446 
籌集資金的現金流量：
行使普通股期權後的收益，扣除支付給稅務的現金767 2,893 
與公司員工股票購買計劃有關的收益19,402 16,344 
發行可轉換債券所得款項266,750 137,976 
應收帳款證券化工具的支付(50,000)— 
其他融資活動(15,544)(7,484)
籌資活動產生的現金淨額
221,375 149,729 
匯率變化對現金及現金等價物的影響427 (626)
現金，現金等價物和受限現金淨增加（減少）(15,008)352,119 
期初現金、現金等價物及受限制的現金609,675 242,790 
期末現金、現金等價物及受限制的現金$594,667 $594,909 


8
目錄
精密科學公司
簡明的綜合現金流量表
（金額以千爲單位-未經審計）
截至9月30日的九個月
20242023
補充披露的非現金投融資活動
購置但未支付的房地產、廠房及設備$11,904 $14,422 
現金流量補充披露：
支付的利息$21,109 $18,176 
現金、現金等價物和限制性現金協調錶：
現金及現金等價物$588,830 $594,612 
受限現金 — 包含在其他開多資產中，淨值
5,837 297 
現金、現金等價物和受限制的現金總額$594,667 $594,909 
隨附說明是這些簡明合併財務報表的一部分。
9
目錄
精密科學公司
簡明合併財務報表註釋
(未經審計)

(1) 重要會計政策摘要
按照我們所處的風險和不確定性的假設，結果和在本招股書或在任何文檔中引用的前瞻性陳述中討論的事件可能不會發生。投資者應謹慎對待這些前瞻性陳述，它們僅在本招股書或在文檔中通過引用作爲參考，其僅在本招股書或在文檔中通過引用作爲參考的文件的日期發表時存在。我們沒有任何義務，並明確聲明不承擔任何義務，更新或更改任何前瞻性陳述，無論是基於新信息、未來事件或其他原因。我們或代表我們行事的任何人作出的所有後續前瞻性陳述，都受到本節中所包含或所提到的警示性聲明的明確限制。
精密科學公司（連同其子公司「Exact」或「公司」）成立於1995年2月。作爲癌症篩查和診斷測試的主要提供商，精密科學爲患者和醫療保健專業人士提供了所需的清晰度，以便更早地採取改變生命的行動。借鑑Cologuard和Oncotype DX測試的成功，精密科學正在投資於其管線，開發創新解決方案，用於癌症診斷前、診斷中和診斷後。® 和Oncotype DX® 測試，精密科學正在投資於其管線，開發創新解決方案，用於癌症診斷前、診斷中和診斷後。
呈報依據及合併原則
附帶的簡明綜合財務報表，包括公司及其全資子公司和可變之利益實體的帳戶，未經審計，並根據公司的審計財務報表和附註於截至2023年12月31日的年度報告第10-K表（「2023表10-K」）準則做了準備。所有公司間交易和餘額在合併時已予以消除。這些簡明綜合財務報表遵循美國通用會計準則（「GAAP」）和證券交易委員會關於中期報告的要求。在管理層的意見中，附有的未經審計的簡明綜合財務報表包含了所有必要調整（僅包括正常和經常性調整），以便對其財務狀況、經營成果和現金流量表所述期間進行公允陳述。2023年12月31日的簡明綜合資產負債表來源於審計財務報表，但不包含2023表10-K的所有附註。公司的任何中期運營結果不一定反映出公司的其他中期期間或完整財政年度運營結果。這些報表應與2023表10-K中包含的審計財務報表和相關附註一併閱讀。
使用估計
按照通用會計準則編制簡明合併財務報表需要管理層進行涉及資產和負債的金額以及在財務報表日期披露的有關資產和負債的估計和假設，以及報告期間內收入和支出的金額。關鍵會計政策是那些對公司財務報表產生重大影響並需要管理層進行艱難、主觀或複雜判斷的政策，實際結果可能會與這些估計不同。這些估計包括收入確認、無形資產和商譽的計價、有條件考量以及所得稅會計處理。公司的關鍵會計政策和估計在本季度10-Q表格中的簡明合併財務報表附註和2023年10-k表格中有進一步解釋。
重要會計政策
在截至2024年9月30日的九個月期間，除下文中「最近採納的會計準則」欄目中所述外，公司在2023年的10-K表中描述的重要會計政策未發生變化。
最近的會計聲明
最近採用的會計準則說明
2024年3月，財務會計準則委員會（「FASB」）發佈了《會計準則更新》（「ASU」）第2024-02號： 體系化改進 - 刪除與概念聲明的參考修訂。此更新修訂了《會計準則體系化》（「ASC」），刪除了對各種FASb概念聲明的參考。公司已提前採納並在2024財年第一季度前瞻性應用了本更新中的修訂。對公司的簡明綜合財務報告未造成重大影響。
10
目錄
精密科學公司
簡明合併財務報表註釋
(未經審計)
最近發佈的未採納會計準則
2023年10月，FASB發佈了ASU No. 2023-06。 信息披露改進：爲響應美國證券交易委員會披露更新和簡化計劃的規範修改本更新修改了ASC中多個話題的披露或展示要求，以符合SEC在發行文號33-10532中的某些修訂內容。 披露更新和簡化本更新中的修訂應當前瞻性應用，並且每項修訂的有效日期將爲SEC自相關披露從《S-X條例》或《S-K條例》中移除之日。然而，如果截至2027年6月30日，SEC尚未從其法規中移除相關披露，則這些修訂將會從法典中刪除，且不生效。不得提前採納。公司目前正在評估該指南對其簡明合併財務報表的潛在影響。
2023年11月，FASB發佈了ASU 2023-07，該更新通過增強重要板塊支出的披露，改進了可報告板塊的披露要求。這個更新中的修正應在合併財務報表中呈現的所有之前期間中進行追溯，適用於2023年12月31日後開始的財政年度和2024年12月31日後的財政年度內的中期期間。早期實施是允許的。公司目前正在評估該指引對其簡明合併財務報表的潛在影響。 分部報告（主題 280）：報告服務部門（主題 280）變更披露方式，通過升級對意義重大的分部費用的披露來改進分部報告披露要求。該準則適用於 2023 年 12 月 15 日之後的財年和 2024 年 12 月 15 日之後的財年間隔期。該準則必須適用於財務報表中呈現的所有期間的追溯。該公司目前正在評估該標準對合並財務報表的影響。此更新通過增強對重大板塊費用的披露，改善了可報告細分披露要求。此更新中的修訂內容應當對在綜合財務報表中呈現的所有之前期間以追溯方式進行應用，並將於2023年12月31日之後開始的財政年度和2024年12月31日之後開始的財政年度內的中期期間生效。允許提前採用。公司目前正在評估此指南對其簡明綜合財務報表可能產生的潛在影響。
2023年12月，FASB發佈了ASU No. 2023-09， 所得稅（主題740）：改進所得稅披露此更新改善了所得稅披露要求，主要通過增強透明度和披露的決策效用。本更新中的修訂應該以前瞻性的方式應用，並可選擇以追溯方式應用，並且適用於2024年12月15日之後開始的財政年度。允許提前採納。公司目前正在評估該指導對其簡明綜合財務報表的潛在影響。
每股淨(損失)收益
基本每股普通股淨收益（虧損）是通過將適用於普通股股東的淨收益（虧損）除以該期間內的平均流通普通股數來確定的。攤薄後每股收益是基於基本每股收益的計算而得出的流通股份以及潛在攤薄股份。
以下是用於計算基本每股收益和攤薄後每股收益的分子和分母的調節。
截至9月30日的三個月截至9月30日的九個月
(以千爲單位)2024202320242023
可歸屬於普通股股東的淨收益（虧損）
$(38,236)$794 $(164,272)$(154,383)
基本每股加權平均股份
184,795 180,649 183,823 179,817 
攤薄效應：
限制性股票獎勵
— 2,153 — — 
股票期權
— 646 — — 
員工股票購買計劃
— 589 — — 
業績股份單位
— 38 — — 
每股普通股攤薄淨收益分母-調整後加權平均數
— 3,426 — — 
稀釋後流通普通股加權平均數
184,795 184,075 183,823 179,817 
每股基本淨利潤
$(0.21)$0.00 $(0.89)$(0.86)
每股攤薄淨利潤
$(0.21)$0.00 $(0.89)$(0.86)
11
目錄
精密科學公司
簡明合併財務報表註釋
(未經審計)
以下潛在發行的普通股未包含在稀釋每股淨損益的計算中，因爲它們將由於每個期間的淨損失產生反稀釋效應:
截至9月30日的三個月
截至9月30日的九個月
(以千爲單位)2024202320242023
可轉換債券轉換後發行的股份26,526 23,231 26,526 23,231 
限制股票獎勵釋放後可發行的股份7,487 — 7,487 6,423 
績效股份單位釋放後可發行的股份數2,037 — 2,037 1,584 
期權行權後發行的股份1,028 — 1,028 1,305 
37,078 23,231 37,078 32,543 

(2) 營業收入
公司的營業收入主要來自於利用其Cologuard和Oncotype進行實驗室檢測服務。® 測試。服務被視爲在將患者測試結果發佈給訂購衛生保健提供者時已完成。
下表列出了公司按收入來源分解的收入：
截至9月30日的三個月截至9月30日的九個月
(以千爲單位)2024202320242023
篩查
Medicare B和C部分$201,423 $173,624 $570,550 $521,370 
商業用途289,637 253,401 827,509 732,182 
其他53,841 44,988 153,246 124,443 
總體檢544,901 472,013 1,551,305 1,377,995 
精準腫瘤醫學
醫療保險B和C部分$47,080 $46,383 $142,597 $141,352 
商業用途47,685 44,430 143,572 135,574 
國際49,433 38,599 140,688 111,453 
其他19,556 26,913 67,281 80,552 
完全精準腫瘤學163,754 156,325 494,138 468,931 
COVID-19檢測$— $— $— $5,955 
總計$708,655 $628,338 $2,045,443 $1,852,881 
篩查營業收入主要包括來自Cologuard和Prevention Genetics, LLC（「PreventionGenetics」）檢測的實驗室服務收入，而精準腫瘤學營業收入主要包括來自全球Oncotype DX和治療選擇檢測的實驗室服務收入。
在每個報告期結束時，公司會對用於計算交易價格的估計進行分析，以判斷新的可用信息是否會影響之前報告期間進行的估計。與以往報告期間估計相關的營業收入認定調整少於 1營收額爲公司的綜合損益表中記錄的，截至2024年9月30日止三個和九個月的營業收入認定調整少於 2營收額爲公司的綜合損益表中記錄的，截至2023年9月30日止三個和九個月的營業收入認定調整少於
公司的遞延收入列示於公司的簡明合併資產負債表中的其他流動負債中，截至2024年9月30日和2023年12月31日，並不重要。
截至2024年和2023年9月30日的三個月和九個月內確認的營業收入，並未包含在期初的遞延收入餘額中，金額不重要。
12
目錄
精密科學公司
簡明合併財務報表註釋
(未經審計)

(3) 有市場可流通證券
以下表格列出了公司在2024年9月30日和2023年12月31日期間的現金、現金等價物和可市場銷售證券情況：
（以千爲單位)2024年9月30日2023年12月31日
現金及現金等價物
現金及貨幣市場$582,741 $530,100 
現金等價物6,089 75,278 
現金及現金等價物總額588,830 605,378 
有價證券
可供出售債務證券$427,072 $168,425 
股權證券5,229 3,841 
所有基金類型投資432,301 172,266 
現金、現金等價物及可交易證券總額$1,021,131 $777,644 
包括2024年9月30日資產負債表中的可供出售債務證券分類如下：
（以千爲單位)攤銷成本
其他綜合收益累計盈餘增加 (1)
其他綜合收益累計虧損 (1)
估算公允價值
現金等價物
美國政府機構債券$6,089 $— $— $6,089 
現金等價物總計6,089 — — 6,089 
有價證券
公司債券$212,590 $2,039 $(14)$214,615 
美國政府機構債券126,676 436 (19)127,093 
資產支持證券84,977 441 (54)85,364 
所有基金類型投資424,243 2,916 (87)427,072 
所有可供出售證券總額$430,332 $2,916 $(87)$433,161 
______________
(1)在累積其他全面收入（「AOCI」）的收益和損失中沒有稅收影響。
13
目錄
精密科學公司
簡明合併財務報表註釋
(未經審計)
包括2023年12月31日彙總資產負債表中的可供出售債務證券分類如下：
（以千爲單位)攤銷成本
其他綜合收益累計增加(1)
其他綜合收益累計虧損 (1)
估算公允價值
現金等價物
商業票據$72,243 $— $— $72,243 
美國政府機構債券3,035 — — 3,035 
現金等價物總計75,278 — — 75,278 
有價證券
美國政府機構債券$56,594 $166 $(44)$56,716 
公司債券55,712 175 (59)55,828 
資產支持證券35,081 65 (249)34,897 
商業票據
20,984 — — 20,984 
所有基金類型投資168,371 406 (352)168,425 
所有可供出售證券總額$243,649 $406 $(352)$243,703 
______________
(1)AOCI中的收益和損失對稅收沒有影響。
以下表格總結了公司截至2024年9月30日的可供出售債務證券的合同基礎到期情況：
一年或更短的期限內到期一年後至五年內到期
(以千爲單位)成本公允價值成本公允價值
現金等價物
美國政府機構債券$6,089 $6,089 $— $— 
現金等價物總計6,089 6,089 — — 
有價證券
美國政府機構債券$89,800 $90,048 $36,876 $37,045 
公司債券51,706 51,890 160,884 162,725 
資產支持證券11,388 11,448 73,589 73,916 
所有基金類型投資152,894 153,386 271,349 273,686 
所有可供出售證券總額$158,983 $159,475 $271,349 $273,686 
以下表格總結了截至2024年9月30日處於未實現損失位置的可供出售債務證券的總體未實現損失和公允價值，按投資類別和這些個別證券處於連續未實現損失位置的時間長度進行彙總：
不足一年一年或更長時間總計
(以千爲單位)公正價值未實現損失公正價值未實現損失公正價值未實現損失
有價證券
公司債券$9,501 $(13)$3,290 $(1)$12,791 $(14)
美國政府機構債券8,551 (16)3,963 (3)12,514 (19)
資產支持證券3,399 (3)3,986 (51)7,385 (54)
所有可供出售證券總額$21,451 $(32)$11,239 $(55)$32,690 $(87)
14
目錄
精確科學公司
簡明合併財務報表附註
（未經審計）
公司評估處於未實現損失位置的投資，以確定由於信用損失而出現減值。 根據2024年9月30日和2023年12月31日目前不存在信用損失，因爲那些處於未實現損失位置的證券的市場價值變動是由於利率期貨波動而非發行人信用價值下降引起的。
可供出售債務證券和股票的收益和損失包括在公司簡明綜合損益表中的投資收益中。截至2024年和2023年9月30日的三個月和九個月內記錄的收益和損失並不重大。

(4) 存貨
庫存包括以下內容：
(以千爲單位)2024年9月30日2023年12月31日
原材料$54,714 $58,593 
半成品和成品82,273 68,882 
19,782$136,987 $127,475 
(5) 不動產、廠房和設備
資產、廠房和設備的賬面價值和預計使用壽命如下：
（以千計）預計使用壽命2024 年 9 月 30 日2023 年 12 月 31 日
財產、廠房和設備
土地不適用$4,716 $4,716 
租賃權和建築物改進(1)227,600 214,562 
土地改善15 年份6,747 6,729 
建築物
30 - 40 年份
290,777 290,777 
計算機設備和計算機軟件3 年份199,715 168,131 
機械和設備
3 - 10 年份
324,129 290,294 
傢俱和固定裝置
3 - 10 年份
36,976 35,756 
在建資產不適用80,063 104,592 
不動產、廠房和設備，按成本計算1,170,723 1,115,557 
累計折舊(480,391)(417,203)
財產、廠房和設備，淨額$690,332 $698,354 
______________
(1)剩餘租賃期限、建築壽命或估計使用壽命中的較短者。
2024年9月30日和2023年，三個月的折舊費用分別爲$30.3萬美元和29.3 百萬。 2024年9月30日和2023年，九個月的折舊費用分別爲$90.71百萬美元和83.6百萬。
2024年9月30日，公司資產總額爲$80.1 百萬美元正在施工中，其中包括$52.3 百萬美元用於機械和設備，$12.7 百萬美元用於資本化軟件項目成本，$10.0 百萬美元用於租賃和建築改善，$5.1 百萬美元與建築物相關，以及少量傢俱和裝置。這些資產一旦投入使用，完成施工，折舊將開始計算。

15
目錄
精密科學公司
簡明合併財務報表註釋
(未經審計)
(6) 無形資產和商譽
無形資產
以下表格總結了截至2024年9月30日公司無形資產的淨賬面價值和預估剩餘壽命:
(以千爲單位)加權平均剩餘壽命（年）成本累計攤銷
2024年9月30日的淨餘額
2024年3月31日和2023年3月31日結束的三個月的攤銷費用爲$
交易名稱11.0$104,000 $(33,340)$70,660 
客戶關係6.34,000 (1,222)2,778 
專利和許可證9.756,542 (11,811)44,731 
獲取已開發的科技 (1)6.6887,708 (391,478)496,230 
有限使用壽命的無形資產總額1,052,250 (437,851)614,399 
研發中的項目n/a1,250,000 — 1,250,000 
無形資產總額$2,302,250 $(437,851)$1,864,399 
以下表格總結了截至2023年12月31日公司無形資產的淨賬面價值和預估剩餘使用壽命：
(以千爲單位)加權平均剩餘壽命（年）成本累計攤銷
2023年12月31日的淨餘額
2024年3月31日和2023年3月31日結束的三個月的攤銷費用爲$
交易名稱11.6$104,000 $(27,903)$76,097 
客戶關係7.04,000 (889)3,111 
專利和許可證4.511,542 (9,600)1,942 
收購了開發好的科技（1）7.3887,789 (328,543)559,246 
有限使用壽命的無形資產總額1,007,331 (366,935)640,396 
研發中的項目n/a1,250,000 — 1,250,000 
無形資產總額$2,257,331 $(366,935)$1,890,396 
______________
(1)毛額包含與收購OmicEra Diagnostics GmbH（「OmicEra」）相關的無關重要性的外幣翻譯調整，這是由於收購無形資產而產生的。
截至2024年9月30日，公司有限壽命無形資產的預計未來攤銷費用分別爲未來五個財政年度如下：
（以千計）
2024 年（剩餘三個月）$24,100 
202596,361 
202695,300 
202795,300 
202895,300 
此後208,038 
$614,399 
16
目錄
精密科學公司
簡明合併財務報表註釋
(未經審計)
公司取得的無形資產正在按照其預計使用年限進行直線攤銷。
截至2023年7月31日，續借貸款協議下未償還的借款額爲no 2024年和2023年9月30日三個月和九個月期間記錄了有限壽命無形資產的減值損失。 更新用於計算公司在研發資產（「IPR&D」）的公允價值的關鍵假設可能會改變公司估計在短期內能夠收回IPR&D資產的賬面價值。
商譽
截至2024年9月30日和2023年12月31日的商譽賬面價值變動情況如下：
(以千爲單位)
2023年1月1日的餘額
$2,346,040 
Resolution Bioscience收購
20,692 
外幣匯率變動影響（1）388 
2023年12月31日的餘額
2,367,120 
Resolution Bioscience收購調整225 
外幣匯率變動影響（1）105 
2024年9月30日餘額
$2,367,450 
______________
(1)代表了與收購OmicEra相關的商譽外幣翻譯影響。
截至2023年7月31日，續借貸款協議下未償還的借款額爲no 2024年9月30日和2023年3個月及9個月的減值損失。

(7) 公允價值計量
建立的公允價值層次結構分爲三個級別：
一級報價（未經調整）是指公司在報告日期有權獲取的同一資產或負債在活躍市場上的報價。活躍市場是指資產或負債的交易發生頻繁且成交量足夠，能夠提供定價信息的市場。
二級報告日起，除了活躍市場報價所包含的一級定價輸入，其他定價輸入可能直接或間接可觀的內容。這些包括活躍市場類似資產或負債的報價以及非活躍市場中相同或相似資產或負債的報價。
Level 3不可觀察的輸入反映了公司對市場參與者在定價資產或負債時所使用的假設。 不可觀察的輸入應被用於衡量公允價值，以彌補可觀察的輸入不可用的情況。
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精密科學公司
簡明合併財務報表註釋
(未經審計)
The following table presents the Company’s fair value measurements as of September 30, 2024 along with the level within the fair value hierarchy in which the fair value measurements, in their entirety, fall.
(In thousands)Fair Value at September 30, 2024Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Cash, cash equivalents, and restricted cash
Cash and money market$582,741 $582,741 $— $— 
U.S. government agency securities6,089 — 6,089 — 
Restricted cash (1)
5,837 5,837 — — 
Marketable securities
Corporate bonds$214,615 $— $214,615 $— 
U.S. government agency securities127,093 — 127,093 — 
Asset backed securities85,364 — 85,364 — 
Equity securities5,229 5,229 — — 
Non-marketable securities$686 $— $— $686 
Liabilities
Contingent consideration$(283,231)$— $— $(283,231)
Total$744,423 $593,807 $433,161 $(282,545)
The following table presents the Company’s fair value measurements as of December 31, 2023 along with the level within the fair value hierarchy in which the fair value measurements, in their entirety, fall.
(In thousands)Fair Value at December 31, 2023Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Cash, cash equivalents and restricted cash
Cash and money market$530,100 $530,100 $— $— 
Commercial paper72,243 — 72,243 — 
Restricted cash (1)
4,297 4,297 — — 
U.S. government agency securities3,035 — 3,035 — 
Marketable securities
U.S. government agency securities$56,716 $— $56,716 $— 
Corporate bonds55,828 — 55,828 — 
Asset backed securities34,897 — 34,897 — 
Commercial paper20,984 — 20,984 — 
Equity securities3,841 3,841 — — 
Non-marketable securities$7,650 $— $— $7,650 
Liabilities
Contingent consideration$(288,657)$— $— $(288,657)
Total$500,934 $538,238 $243,703 $(281,007)
_________________________________
(1)Restricted cash primarily represents cash held by a third-party financial institution as part of a cash collateral agreement related to the Company’s credit card program. The restrictions will lapse upon the termination of the agreements or the removal of the cash collateral requirement by the third-parties.
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EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)
There have been no material changes in valuation techniques or transfers between fair value measurement levels during the three and nine months ended September 30, 2024. The fair value of Level 2 instruments classified as cash equivalents and marketable debt securities are valued using a third-party pricing agency where the valuation is based on observable inputs including pricing for similar assets and other observable market factors.
The Company has elected the fair value option under the income approach to measure certain Level 3 non-marketable securities. Gains and losses recorded on non-marketable securities are included in investment income, net in the condensed consolidated statement of operations. The following table provides a reconciliation of the beginning and ending balances of non-marketable securities valued using the fair value option:
(In thousands)Non-Marketable Securities
Beginning balance, January 1, 2024
$7,650 
Changes in fair value(714)
Settlement of non-marketable securities(6,250)
Ending balance, September 30, 2024
$686 
Contingent Consideration Liabilities
The fair value of the contingent consideration liabilities was $283.2 million and $288.7 million as of September 30, 2024 and December 31, 2023, respectively, of which $19.4 million was included in other current liabilities and $263.8 million was included in other long-term liabilities in the condensed consolidated balance sheet as of September 30, 2024. The contingent consideration liabilities were included in other long-term liabilities as of December 31, 2023.
The following table provides a reconciliation of the beginning and ending balances of contingent consideration:
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2024202320242023
Beginning balance
$277,921 $302,141 $288,657 $306,927 
Changes in fair value (1)5,310 (8,364)(2,326)(13,051)
Payments (2)
— — (3,100)(99)
Ending balance
$283,231 $293,777 $283,231 $293,777 
______________
(1)The change in fair value of the contingent consideration liability is included in general and administrative expenses in the condensed consolidated statement of operations for the three and nine months ended September 30, 2024 and 2023.
(2)Payment was made in the second quarter of 2024 to settle the contingent consideration liability previously recorded related to the Company’s acquisition of OmicEra.
This fair value measurement of contingent consideration is categorized as a Level 3 liability, as the measurement amount is based primarily on significant inputs not observable in the market.
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EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)
The fair value of the contingent consideration liabilities recorded from the Company’s acquisitions of Thrive Earlier Detection Corporation (“Thrive”), Ashion Analytics, LLC (“Ashion”), and OmicEra related to regulatory and product development milestones was $283.2 million and $288.7 million as of September 30, 2024 and December 31, 2023, respectively. The Company estimates the fair value of the contingent consideration liabilities related to the regulatory and product development milestones using the probability-weighted scenario based discounted cash flow model, which is consistent with the initial measurement of the contingent consideration liabilities. Probabilities of success are applied to each potential scenario and the resulting values are discounted using a present-value factor. The passage of time in addition to changes in projected milestone achievement timing, present-value factor, the degree of achievement, if applicable, and probabilities of success may result in adjustments to the fair value measurement. The fair value of the contingent consideration liability recorded related to regulatory and product development milestones was determined using a weighted average probability of success of 90% and 89% as of September 30, 2024 and December 31, 2023, respectively, and a weighted average present-value factor of 6.0% and 5.8% as of September 30, 2024 and December 31, 2023, respectively. The projected fiscal year of payment range is from 2025 to 2031. Unobservable inputs were weighted by the relative fair value of the contingent consideration liabilities.
The revenue milestone associated with the Ashion acquisition is not expected to be achieved and therefore no liability has been recorded for this milestone.
Non-Marketable Equity Securities
Non-marketable equity securities without readily determinable fair values, which are classified as a component of other long-term assets, net, had the following cumulative upward and downward adjustments and aggregate carrying amounts:
(In thousands)
September 30, 2024September 30, 2023
Cumulative upward adjustments (1)
$5,102 $779 
Cumulative downward adjustments and impairments (2)
15,071 15,071 
Aggregate carrying value (3)
52,227 31,654 
_________________________________
(1)    There were no material upward adjustments recorded on non-marketable equity securities held for the three and nine months ended September 30, 2024 and 2023.
(2)    There were no material downward adjustments or impairments recorded on non-marketable equity securities held for the three and nine months ended September 30, 2024 and 2023, respectively.
(3)    The aggregate carrying value of non-marketable equity securities was $46.0 million as of December 31, 2023.
There were no material realized gains or losses recorded during the three and nine months ended September 30, 2024 and 2023.
The Company has committed capital to venture capital investment funds of $18.0 million, of which $11.7 million remains callable through 2033 as of September 30, 2024. The aggregate carrying amount of these funds, which are classified as a component of other long-term assets, net in the Company’s condensed consolidated balance sheets, was $6.7 million and $5.2 million as of September 30, 2024 and December 31, 2023, respectively.
Derivative Financial Instruments
The Company enters into foreign currency forward contracts on the last day of each month to mitigate the impact of adverse movements in foreign exchange rates related to the remeasurement of monetary assets and liabilities and hedge the Company’s foreign currency exchange rate exposure. As of September 30, 2024 and December 31, 2023 the Company had open foreign currency forward contracts with notional amounts of $47.7 million and $39.5 million, respectively. The Company's foreign exchange derivative instruments are classified as Level 2 within the fair value hierarchy as they are valued using inputs that are observable in the market or can be derived principally from or corroborated by observable market data. The fair value of the open foreign currency forward contracts was zero at September 30, 2024 and December 31, 2023 and there were no gains or losses recorded to adjust the fair value of the open foreign currency contract held as of September 30, 2024. The contracts are closed subsequent to each month-end, and the gains and losses recorded from the contracts were not significant for the three and nine months ended September 30, 2024 and 2023.
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EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)

(8) LONG-TERM DEBT
Accounts Receivable Securitization Facility
On June 29, 2022, the Company, through a wholly-owned special purpose entity, Exact Receivables LLC (“Exact Receivables”) entered into an accounts receivable securitization program (the “Securitization Facility”) with PNC Bank, National Association (“PNC”), with a scheduled maturity date of June 29, 2024. The Securitization Facility required the Company to maintain minimum borrowings under the facility of $50.0 million. Upon the maturity of the Securitization Facility in June 2024, the Company repaid the previously outstanding balance of $50.0 million in full. The Securitization Facility provided Exact Receivables with a revolving line-of-credit of up to $150.0 million of borrowing capacity, subject to certain borrowing base requirements, by collateralizing a security interest in the domestic customer accounts receivable of certain wholly-owned subsidiaries of the Company. The amount available under the Securitization Facility fluctuated over time based on the total amount of eligible customer accounts receivable generated by the Company during the normal course of operations. The debt issuance costs incurred related to the Securitization Facility were not significant and were amortized over the life of the Securitization Facility through interest expense within the condensed consolidated statements of operations.
In connection with the Securitization Facility, the Company also entered into two Receivables Purchase Agreements (“Receivable Purchase Agreements”) on June 29, 2022. The Receivable Purchase Agreements were among the Company and certain wholly-owned subsidiaries of the Company, and between the Company and Exact Receivables. Under the agreements, the wholly-owned subsidiaries sold all of their right, title and interest in their accounts receivables to Exact Receivables. The receivables were used to collateralize borrowings made under the Securitization Facility. The Company retained the responsibility of servicing the accounts receivable balances pledged as collateral under the Securitization Facility and provided a performance guaranty.
As of December 31, 2023, the Company had an outstanding balance of $50.0 million, which was included in debt, current portion on the Company’s condensed consolidated balance sheet. Prior to the repayment, the outstanding balance accrued interest at a rate equal to a daily secured overnight financing rate (“SOFR”) plus a SOFR adjustment and an applicable margin. The interest rate was 6.89% as of the maturity date.
Revolving Loan Agreement
During November 2021, the Company entered into a revolving loan agreement (the “Revolving Loan Agreement”) with PNC. The Revolving Loan Agreement provides the Company with a revolving line of credit of up to $150.0 million (the “Revolver”). The Revolver is collateralized by the Company’s marketable securities held by PNC, which must continue to maintain a minimum market value of $150.0 million. The Revolver is available for general working capital purposes and all other lawful corporate purposes. In addition, the Company may request, in lieu of cash advances, letters of credit with an aggregate stated amount outstanding not to exceed $20.0 million. The availability of advances under the line of credit will be reduced by the stated amount of each letter of credit issued and outstanding.
Borrowings under the Revolving Loan Agreement accrue interest at an annual rate equal to the sum of the daily Bloomberg Short-Term Bank Yield Index Rate plus the applicable margin of 0.60%. Loans under the Revolving Loan Agreement may be prepaid at any time without penalty. In October 2022, the Revolving Loan Agreement was amended to extend the maturity date from November 5, 2023 to November 5, 2025. There were no other amendments to the Revolver.
The Company has agreed to various financial covenants under the Revolving Loan Agreement, and as of September 30, 2024, the Company is in compliance with all covenants.
In December 2021 and January 2023, PNC issued letters of credit of $2.9 million and $1.5 million, respectively, which reduced the amount available for cash advances under the line of credit to $145.6 million as of September 30, 2024 and December 31, 2023. As of September 30, 2024 and December 31, 2023, the Company has not drawn funds from, nor are any amounts outstanding under, the Revolving Loan Agreement.

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EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(9) CONVERTIBLE NOTES
Convertible note obligations included in the condensed consolidated balance sheet consisted of the following as of September 30, 2024:
Fair Value (1)
(In thousands)Principal AmountUnamortized Debt Discount and Issuance CostsNet Carrying AmountAmountLeveling
2031 Convertible Notes - 1.750%
$620,709 $(14,090)$606,619 $623,558 2
2030 Convertible Notes - 2.000%
572,993 (3,820)569,173 652,244 2
2028 Convertible Notes - 0.375%
589,380 (5,346)584,034 546,650 2
2027 Convertible Notes - 0.375%
563,822 (4,158)559,664 547,668 2
2025 Convertible Notes - 1.000% (2)
249,172 (134)249,038 254,155 2
Convertible note obligations included in the condensed consolidated balance sheet consisted of the following as of December 31, 2023:
Fair Value (1)
(In thousands)Principal AmountUnamortized Debt Discount and Issuance CostsNet Carrying AmountAmountLeveling
2030 Convertible Notes - 2.000%
$572,993 $(4,349)$568,644 $684,475 2
2028 Convertible Notes - 0.375%
949,042 (10,499)938,543 887,354 2
2027 Convertible Notes - 0.375%
563,822 (5,429)558,393 549,839 2
2025 Convertible Notes - 1.000%
249,172 (476)248,696 293,300 2
______________
(1)The fair values are based on observable market prices for this debt, which is traded in less active markets and therefore is classified as a Level 2 fair value measurement.
(2)The Company’s convertible notes due in 2025 (the “2025 Notes”) mature on January 15, 2025 and are included in convertible notes, net, current portion on the condensed consolidated balance sheet as of September 30, 2024. The 2025 Notes were included in convertible notes, net, less current portion as of December 31, 2023.
Issuances and Settlements
In February 2023, the Company entered into a privately negotiated exchange and purchase agreement with a single holder of certain of the Company’s convertible notes due in 2027 (the “2027 Notes”) and 2028 (the “2028 Notes”). The Company issued the holder $500.0 million aggregate principal amount of 2.0% Convertible Notes due in 2030 (the “2030 Notes”) in exchange for $183.7 million of aggregate principal of 2027 Notes, $201.0 million of aggregate principal of 2028 Notes, and $138.0 million of cash. The extinguishment resulted in a gain on settlement of convertible notes of $17.7 million, which is included in interest expense in the condensed consolidated statement of operations for the nine months ended September 30, 2023. The gain represents the difference between (i) the fair value of the consideration transferred and (ii) the carrying value of the debt at the time of exchange.
In March 2023, the Company entered into a privately negotiated exchange agreement with two holders of certain of the 2025 Notes. The Company issued the holder $73.0 million aggregate principal amount of 2030 Notes in exchange for $65.8 million of aggregate principal of 2025 Notes. The extinguishment resulted in a loss on settlement of convertible notes of $7.4 million, which is included in interest expense in the condensed consolidated statement of operations for the nine months ended September 30, 2023. The loss represents the difference between (i) the fair value of the consideration transferred and (ii) the carrying value of the debt at the time of exchange.
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EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)
The net proceeds from the issuance of the 2030 Notes were approximately $133.0 million, after deducting commissions and offering expenses payable by the Company.
The 2030 Notes will mature on March 1, 2030 and bear interest at a rate of 2.0% per year, payable semi-annually in arrears on March 1 and September 1 of each year, beginning on September 1, 2023.
In April 2024, the Company entered into a privately negotiated exchange and purchase agreement with certain holders of the Company’s 2028 Notes. The Company issued $620.7 million aggregate principal amount of 1.75% Convertible Notes due in 2031 (the “2031 Notes” and, collectively with the 2025 Notes, 2027 Notes, 2028 Notes, and 2030 Notes, the “Notes”) in exchange for $359.7 million of aggregate principal of 2028 Notes, and $266.8 million of cash after deducting underwriting discounts. The extinguishment resulted in a gain on settlement of convertible notes of $10.3 million, which is included in interest expense in the condensed consolidated statement of operations for the nine months ended September 30, 2024. The gain represents the difference between (i) the fair value of the consideration transferred and (ii) the carrying value of the debt at the time of exchange.
The net proceeds from the issuance of the 2031 Notes were approximately $259.8 million, after deducting commissions and offering expenses payable by the Company.
The 2031 Notes will mature on April 15, 2031 and bear interest at a rate of 1.75% per year, payable semi-annually in arrears on October 15 and April 15 of each year, beginning on October 15, 2024. The Company has the ability to repurchase the 2031 Notes after April 17, 2029 upon the occurrence of certain events and during certain periods, as set forth in the Indenture filed at the time of the offering.
Summary of Conversion Features
Until the six-months immediately preceding the maturity date of the applicable series of the Company’s convertible notes, each series of Notes is convertible only upon the occurrence of certain events and during certain periods, as set forth in the Indentures filed at the time of the original offerings. On or after the date that is six-months immediately preceding the maturity date of the applicable series of Notes until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may elect to convert such Notes at any time, and if elected, the conversion would occur on the maturity date. The Notes will be convertible into cash, shares of the Company’s common stock (plus, if applicable, cash in lieu of any fractional share), or a combination of cash and shares of the Company’s common stock, at the Company’s election. If the Notes are not converted prior to the maturity date, the principal amount will be settled in cash upon maturity.
It is the Company’s intent to settle all conversions through combination settlement. The initial conversion rate is 13.26, 8.96, 8.21, 12.37, and 10.06 shares of common stock per $1,000 principal amount for the 2025 Notes, 2027 Notes, 2028 Notes, 2030 Notes, and 2031 Notes, respectively, which is equivalent to an initial conversion price of approximately $75.43, $111.66, $121.84, $80.83, and $99.36 per share of the Company’s common stock for the 2025 Notes, 2027 Notes, 2028 Notes, 2030 Notes, and 2031 Notes, respectively. The 2025 Notes, 2027 Notes, 2028 Notes, 2030 Notes, and 2031 Notes are potentially convertible into up to 3.3 million, 5.0 million, 4.8 million, 7.1 million, and 6.2 million shares, respectively. The conversion rate is subject to adjustment upon the occurrence of certain specified events as set forth in the Indentures filed at the time of the original offerings but will not be adjusted for accrued and unpaid interest. In addition, holders of the Notes who convert their Notes in connection with a “make-whole fundamental change” (as defined in the Indentures), will, under certain circumstances, be entitled to an increase in the conversion rate.
If the Company undergoes a “fundamental change” (as defined in the Indentures), holders of the Notes may require the Company to repurchase for cash all or part of their Notes at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest.
Based on the closing price of the Company’s common stock of $68.12 on September 30, 2024, the if-converted values on the Notes do not exceed the principal amount.
The Notes do not contain any financial or operating covenants or any restrictions on the payment of dividends, the issuance of other indebtedness, or the issuance or repurchase of securities by the Company.
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EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Ranking of Convertible Notes
The Notes are the Company’s senior unsecured obligations and (i) rank senior in right of payment to all of its future indebtedness that is expressly subordinated in right of payment to the Notes; (ii) rank equal in right of payment to each outstanding series thereof and to all of the Company’s future liabilities that are not so subordinated, unsecured indebtedness; (iii) are effectively junior to all of the Company’s existing and future secured indebtedness and other secured obligations, to the extent of the value of the assets securing that indebtedness and other secured obligations; and (iv) are structurally subordinated to all indebtedness and other liabilities of the Company’s subsidiaries.
Issuance Costs
Issuance costs are amortized to interest expense over the term of the Notes. The following table summarizes the original issuance costs at the time of issuance for each set of Notes:
(In thousands)
2031 Convertible Notes
$6,820 
2030 Convertible Notes4,938 
2028 Convertible Notes24,453 
2027 Convertible Notes14,285 
2025 Convertible Notes17,646 
Interest Expense
Interest expense on the Notes includes the following:
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2024202320242023
Debt issuance costs amortization$1,334 $1,329 $3,965 $4,021 
Debt discount amortization322 25 611 81 
Gain on settlements of convertible notes— — (10,254)(10,324)
Coupon interest expense7,285 4,906 19,054 13,166 
Total interest expense (income) on convertible notes$8,941 $6,260 $13,376 $6,944 
The following table summarizes the effective interest rates of the Notes:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
2031 Convertible Notes
2.10 %— %2.06 %— %
2030 Convertible Notes2.12 %2.12 %2.09 %2.09 %
2028 Convertible Notes0.64 %0.64 %0.63 %0.63 %
2027 Convertible Notes0.68 %0.68 %0.67 %0.67 %
2025 Convertible Notes1.18 %1.18 %1.17 %1.17 %
The remaining period over which the unamortized debt discount will be recognized as non-cash interest expense is 0.29, 2.45, 3.42, 5.42, and 6.54 years for the 2025 Notes, 2027 Notes, 2028 Notes, 2030 Notes, and 2031 Notes, respectively.

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EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(10) LICENSE AND COLLABORATION AGREEMENTS
The Company licenses certain technologies that are, or may be, incorporated into its technology under several license agreements, as well as the rights to commercialize certain diagnostic tests through collaboration agreements. Generally, the license agreements require the Company to pay single-digit royalties based on net revenues received using the technologies and may require minimum royalty amounts, milestone payments, or maintenance fees.
Mayo Foundation for Medical Education and Research
In June 2009, the Company entered into an exclusive, worldwide license agreement with the Mayo Foundation for Medical Education and Research (“Mayo”), under which Mayo granted the Company an exclusive, worldwide license to certain Mayo patents and patent applications, as well as a non-exclusive, worldwide license with regard to certain Mayo know-how. The scope of the license covers any screening, surveillance or diagnostic test or tool for use in connection with any type of cancer, pre-cancer, disease or condition. The Company’s license agreement with Mayo was most recently amended and restated in September 2020.
The licensed Mayo patents and patent applications contain both method and composition claims that relate to sample processing, analytical testing and data analysis associated with nucleic acid screening for cancers and other diseases. The jurisdictions covered by these patents and patent applications include the U.S., Australia, Canada, the European Union, China, Japan and Korea. Under the license agreement, the Company assumed the obligation and expense of prosecuting and maintaining the licensed Mayo patents and is obligated to make commercially reasonable efforts to bring to market products using the licensed Mayo intellectual property.
Pursuant to the Company’s agreement with Mayo, the Company is required to pay Mayo a low-single-digit royalty on the Company’s net sales of current and future products using the licensed Mayo intellectual property each year during the term of the Mayo agreement.
The Company is also required to pay Mayo up to $3.0 million in sales-based milestone payments upon cumulative net sales of each product using the licensed Mayo intellectual property reaching specified levels.
The license agreement will remain in effect, unless earlier terminated by the parties in accordance with the agreement, until the last of the licensed patents expires in 2039 (or later, if certain licensed patent applications are issued). However, if the Company is still using the licensed Mayo know-how or certain Mayo-provided biological specimens or their derivatives on such expiration date, the term shall continue until the earlier of the date the Company stops using such know-how and materials and the date that is five years after the last licensed patent expires. The license agreement contains customary termination provisions and permits Mayo to terminate the license agreement if the Company sues Mayo or its affiliates, other than any such suit claiming an uncured material breach by Mayo of the license agreement.
In addition to granting the Company a license to the covered Mayo intellectual property, Mayo provides the Company with product development and research and development assistance pursuant to the license agreement and other collaborative arrangements. In September 2020, Mayo also agreed to make available certain personnel to provide such assistance through January 2025. In connection with this collaboration, the Company has incurred insignificant charges for the three months ended September 30, 2024 and 2023, respectively. The charges incurred in connection with this collaboration are recorded in research and development expenses in the Company’s condensed consolidated statements of operations.
Johns Hopkins University
Through the acquisition of Thrive, the Company acquired a worldwide exclusive license agreement with Johns Hopkins University (“JHU”) for use of several JHU patents and licensed know-how. The license is designed to enable the Company to leverage JHU intellectual property in the development and commercialization of a blood-based, multi-cancer screening test. The agreement terms would require the Company to pay single-digit sales-based royalties and up to $45.0 million in sales-based milestone payments for each JHU licensed product that reaches specified net sales levels. The Company will record the sales-based royalties once sales of licensed products have occurred and sales-based milestones once achievement is deemed probable. The Company has not incurred charges related to the achievement of any sales-based royalties or sales-based milestones as of September 30, 2024.
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EXACT SCIENCES CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Targeted Digital Sequencing (“TARDIS”) License Agreement
In January 2021, the Company entered into an exclusive, worldwide license to the proprietary TARDIS technology from The Translational Genomics Research Institute (“TGen”). Under the agreement, the Company acquired a royalty-free, worldwide exclusive license to proprietary TARDIS patents and know-how. Under the agreement, the Company was obligated to make milestone payments to TGen of up to $45.0 million in sales-based milestone payments upon cumulative net sales related to molecular residual disease (“MRD”) detection and/or treatment reaching specified levels. These payments were contingent upon achievement of these cumulative revenues on or before December 31, 2030, which was not achieved prior to the termination.
Effective May 1, 2024, the Company entered into termination agreements (the “Termination Agreements”) with TGen for the purpose of terminating the license and sponsored research agreement relating to the TARDIS technology and an additional sponsored research agreement with a broader scope (collectively, the “Original Agreements”). As part of the Termination Agreements, the Company will pay TGen $27.6 million in compensation for the termination of the Original Agreements, which will be allocated into three annual installments of $9.2 million per year beginning in the second quarter of 2024. The fair value of the termination payments as of the date of the Termination Agreements was $25.8 million, which was recorded as research and development expense in the condensed consolidated statement of operations in the second quarter of 2024. The remaining $1.8 million in expense is being recognized ratably through the date of the final payment in the second quarter of 2026. The Company has recorded a liability of $17.1 million representing the fair value of the remaining payments, of which $8.8 million is included in accrued liabilities and $8.3 million is included in other long-term liabilities on the condensed consolidated balance sheet as of September 30, 2024. The termination payments eliminate the Company’s obligation to pay TGen any further payments, equities, fees, costs, or other amounts that would have been due under the Original Agreements, including the milestone payments. The Company’s ongoing development efforts for its pipeline tests are not impacted by the Termination Agreements.
Broad Institute, Inc.
In June 2023, the Company entered into an exclusive license agreement with Broad Institute, Inc. (“Broad Institute”) to utilize the Minor Allele Enriched Sequencing Through Recognition Oligonucleotides (“MAESTRO”) technology in the Company’s MRD testing. Under the license agreement, the Company is obligated to make development milestone payments to Broad Institute of up to $6.5 million upon achievement of certain development milestones related to prospective MRD tests that use the MAESTRO technology. In addition, the Company is obligated to make sales-based milestone payments to Broad Institute that equate up to a mid-single-digit royalty upon the achievement of certain cumulative net sales targets of licensed products using the MAESTRO technology beginning at $500.0 million. The Company will record the development milestones once achieved and the sales milestones once achievement is deemed probable. The Company has not incurred charges related to the achievement of development milestones or sales milestones as of September 30, 2024.
Watchmaker Genomics, Inc.
In July 2023, the Company entered into a co-exclusive development and license agreement with Watchmaker Genomics, Inc. (“Watchmaker”) under which the Company granted Watchmaker a co-exclusive license to the non-bisulfite technology for the detection of methylated DNA and other epigenetic modifications (“TAPS”). TAPS is based on patents obtained by the Company through an exclusive license agreement with the Ludwig Institute for Cancer Research. Under the agreement, both parties have the right to use and develop TAPS for commercial purposes. The Company has the potential to receive up to $82.0 million in sales-based milestone payments and mid-single-digit royalties based on future Watchmaker net sales of licensed products including TAPS. Additionally, Watchmaker has the right to sublicense TAPS, and the Company has the potential to receive royalties based on future Watchmaker sublicense receipts.
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Notes to Condensed Consolidated Financial Statements
(Unaudited)
TwinStrand Biosciences, Inc.
On July 1, 2024, the Company entered into an agreement with TwinStrand Biosciences, Inc. (“TwinStrand”), under which TwinStrand licensed to the Company intellectual property related to the error correction technology in next-generation sequencing. The Company’s rights are broadly exclusive with respect to cell-free nucleic acid sequencing, subject to certain non-exclusive relationships in the field. Under the license agreement, the Company made upfront payments to TwinStrand totaling $45.0 million in July 2024. The upfront payments were capitalized as a patent and license intangible asset in the condensed consolidated balance sheet, which is amortized through amortization of acquired intangible assets in the condensed consolidated statement of operations over its estimated useful life of 10 years. In addition, the Company agreed to pay TwinStrand a low-single-digit royalty on the Company’s net sales of certain licensed products and services. The Company will record the sales-based royalties once sales using relevant licensed products and services have occurred. The Company has not incurred charges related to the sales-based royalties as of September 30, 2024.

(11) STOCKHOLDERS’ EQUITY
Changes in Accumulated Other Comprehensive Income
The amounts recognized in AOCI for the nine months ended September 30, 2024 were as follows:
(In thousands)Cumulative Translation Adjustment
Unrealized Gain on Securities (1)
AOCI
Balance at December 31, 2023$1,374 $54 $1,428 
Other comprehensive loss before reclassifications
427 2,723 3,150 
Amounts reclassified from accumulated other comprehensive income
— 52 52 
Net current period change in accumulated other comprehensive income
427 2,775 3,202 
Balance at September 30, 2024$1,801 $2,829 $4,630 
______________
(1)There was no tax impact from the amounts recognized in AOCI for the three and nine months ended September 30, 2024.
The amounts recognized in AOCI for the nine months ended September 30, 2023 were as follows:
(In thousands)Cumulative Translation AdjustmentUnrealized Gain (Loss) on Securities (1)
AOCI
Balance at December 31, 2022$53 $(5,289)$(5,236)
Other comprehensive income before reclassifications
(626)748 122 
Amounts reclassified from accumulated other comprehensive income
— 3,579 3,579 
Net current period change in accumulated other comprehensive income
(626)4,327 3,701 
Balance at September 30, 2023$(573)$(962)$(1,535)
______________
(1)There was no tax impact from the amounts recognized in AOCI for the nine months ended September 30, 2023.
Amounts reclassified from AOCI for the nine months ended September 30, 2024 and 2023 were as follows:
Affected Line Item in the
Statements of Operations		Nine Months Ended September 30,
Details about AOCI Components (In thousands)20242023
Change in value of available-for-sale investments
Sales and maturities of available-for-sale investments
Investment income, net
$52 $3,579 
Total reclassifications$52 $3,579 

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Notes to Condensed Consolidated Financial Statements
(Unaudited)
(12) STOCK-BASED COMPENSATION
Stock-Based Compensation Plans
The Company maintains the following plans for which awards were granted from or had awards outstanding in 2023: the 2010 Omnibus Long-Term Incentive Plan (as Amended and Restated effective July 27, 2017), the 2019 Omnibus Long-Term Incentive Plan, and the 2010 Employee Stock Purchase Plan. These plans are collectively referred to as the “Stock Plans” and are administered in conjunction with the Company’s Equity Award Death, Disability and Retirement Policy, which was adopted in February 2023. Refer to the Company’s 2023 Form 10-K for further information regarding this policy.
Stock-Based Compensation Expense
The Company records stock-based compensation expense in connection with the amortization of restricted stock and restricted stock unit awards (“RSUs”), performance share units (“PSUs”), stock purchase rights granted under the Company’s employee stock purchase plan (“ESPP”) and stock options granted to employees, non-employee consultants and non-employee directors. The Company recorded $48.8 million and $61.9 million in stock-based compensation expense during the three months ended September 30, 2024 and 2023, respectively. The Company recorded $165.7 million and $172.7 million in stock-based compensation expense during the nine months ended September 30, 2024 and 2023, respectively.
As of September 30, 2024, there was approximately $383.8 million of expected total unrecognized compensation cost related to non-vested stock-based compensation arrangements granted under all equity compensation plans. The Company expects to recognize that cost over a weighted average period of 2.6 years.
Stock Options
A summary of stock option activity under the Stock Plans is as follows:
Option SharesWeighted Average Exercise PriceWeighted Average Remaining Contractual Term (Years)Aggregate Intrinsic Value (1)
(Aggregate intrinsic value in thousands)
Outstanding, January 1, 20241,286,173 $47.67 3.8
Exercised(221,374)19.50 
Forfeited(36,575)91.37 
Outstanding, September 30, 20241,028,224 $52.18 3.3$26,970 
Vested and expected to vest, September 30, 2024
1,028,224 $52.18 3.3$26,970 
Exercisable, September 30, 20241,028,224 $52.18 3.3$26,970 
______________
(1)The total intrinsic value of options exercised, net of shares withheld for taxes, during the nine months ended September 30, 2024 and 2023 was $6.2 million and $10.6 million, respectively, determined as of the date of exercise.
Restricted Stock and Restricted Stock Units
The fair value of restricted stock and RSUs is determined on the date of grant using the closing stock price on that day.
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Notes to Condensed Consolidated Financial Statements
(Unaudited)
A summary of restricted stock and RSU activity during the nine months ended September 30, 2024 is as follows:
Restricted SharesWeighted Average Grant Date Fair Value (1)
Outstanding, January 1, 20246,272,763 $73.39 
Granted4,227,223 56.67 
Released (2)(2,232,590)77.62 
Forfeited(780,430)61.93 
Outstanding, September 30, 20247,486,966 $63.07 
______________
(1)The weighted average grant date fair value of the RSUs granted during the nine months ended September 30, 2023 was $62.28.
(2)The fair value of RSUs vested and converted to shares of the Company’s common stock was $173.3 million and $146.7 million during the nine months ended September 30, 2024 and 2023, respectively.
Performance Share Units
The Company has issued performance-based equity awards to certain employees which vest upon the achievement of certain performance goals, including financial performance targets and operational milestones.
A summary of PSU activity during the nine months ended September 30, 2024 is as follows:
Performance Share Units (1)Weighted Average Grant Date Fair Value (2)
Outstanding, January 1, 20241,597,801 $92.73 
Granted913,533 63.68 
Released (3)(70,662)140.20 
Forfeited(403,454)92.47 
Outstanding, September 30, 20242,037,218 $75.47 
______________
(1)The PSUs listed above assumes attainment of maximum payout rates as set forth in the performance criteria. Applying actual or expected payout rates, the number of outstanding PSUs as of September 30, 2024 was 820,015.
(2)The weighted average grant date fair value of the PSUs granted during the nine months ended September 30, 2023 was $79.11.
(3)The fair value of PSUs vested and converted to shares of the Company’s common stock was $9.9 million and $1.0 million for the nine months ended September 30, 2024 and 2023, respectively.
Employee Stock Purchase Plan
The fair value of shares purchased during the three and nine months ended September 30, 2024 and 2023 under the ESPP is based on the assumptions in the following table:
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Notes to Condensed Consolidated Financial Statements
(Unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
ESPP Shares
Risk-free interest rates
(1)
(1)
4.71% - 5.30%
4.68%
Expected term (in years)
(1)
(1)
1.171.25
Expected volatility
(1)
(1)
55.67% - 63.13%
67.30%
Dividend yield
(1)
(1)
—%—%
______________
(1)The Company did not issue stock purchase rights under its 2010 Employee Stock Purchase Plan during the period indicated.
(13) COMMITMENTS AND CONTINGENCIES
Leases
Supplemental disclosure of cash flow information related to the Company’s cash and non-cash activities with its leases are as follows:
Nine Months Ended September 30,
(In thousands)20242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$28,658$29,212
Operating cash flows from finance leases991559
Finance cash flows from finance leases4,8902,545
Non-cash investing and financing activities:
Right-of-use assets obtained in exchange for new operating lease liabilities
$17,860$2,097
Right-of-use assets obtained in exchange for new finance lease liabilities15,9954,940
Weighted-average remaining lease term - operating leases (in years)7.587.00
Weighted-average remaining lease term - finance leases (in years)3.082.99
Weighted-average discount rate - operating leases6.55 %6.50 %
Weighted-average discount rate - finance leases6.71 %7.32 %
As of September 30, 2024 and December 31, 2023, the Company’s right-of-use assets from operating leases are $122.5 million and $143.7 million, respectively, which are reported in operating lease right-of-use assets in the Company’s condensed consolidated balance sheets. As of September 30, 2024, the Company has outstanding operating lease obligations of $189.9 million, of which $27.2 million is reported in operating lease liabilities, current portion and $162.7 million is reported in operating lease liabilities, less current portion in the Company’s condensed consolidated balance sheets. As of December 31, 2023, the Company had outstanding operating lease obligations of $190.4 million, of which $29.4 million is reported in operating lease liabilities, current portion and $161.1 million is reported in operating lease liabilities, less current portion in the Company’s condensed consolidated balance sheets.
In the third quarter of 2024, the Company recorded an impairment charge of $18.7 million, which consisted of a right-of-use asset of $11.8 million and associated leasehold improvements of $6.9 million relating to one of its domestic facilities that will be vacated in the fourth quarter of 2024 as a result of a change in strategic priorities. The Company used the income approach, under which the recoverability of the assets was measured by comparing the carrying amount of the asset to future undiscounted, pre-tax cash flows generated by the assets held. The fair value of the assets was determined using discounted cash flows, and the impairment charge recorded represents the difference between the carrying value and fair value of the impaired assets. The impairment charge recorded is included in impairment of long-lived assets in the Company’s condensed consolidated statement of operations for the three and nine months ended September 30, 2024.
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Notes to Condensed Consolidated Financial Statements
(Unaudited)
As of September 30, 2024 and December 31, 2023, the Company’s right-of-use assets from finance leases are $21.6 million and $11.3 million, respectively, which are reported in other long-term assets, net in the Company’s condensed consolidated balance sheets. As of September 30, 2024, the Company has outstanding finance lease obligations of $22.7 million, of which $7.9 million is reported in other current liabilities and $14.8 million is reported in other long-term liabilities in the Company’s condensed consolidated balance sheets. As of December 31, 2023, the Company had outstanding finance lease obligations of $11.9 million, of which $4.4 million is reported in other current liabilities and $7.5 million is reported in other long-term liabilities in the Company’s condensed consolidated balance sheets.

Legal Matters
In addition to commitments and obligations incurred in the ordinary course of business, from time to time the Company may be subject to a variety of claims and legal proceedings, including legal actions for damages, governmental investigations and other matters. The Company has also instituted, and may in the future institute, additional legal proceedings to enforce its rights and seek remedies, such as monetary damages, injunctive relief and declaratory relief.
The Company accrues costs for certain legal proceedings and regulatory matters to the extent that it determines an unfavorable outcome is probable and the amount of the loss can be reasonably estimated. While such accrued costs reflect the Company’s best estimate of the probable loss for such matters, the recorded amounts may differ materially from the actual amount of any such losses. In some cases, no estimate of the possible loss or range of loss in excess of amounts accrued, if any, can be made because of the inherently unpredictable nature of legal and regulatory proceedings, which may be exacerbated by various factors, including but not limited to, that they may involve indeterminate claims for monetary damages or may involve fines, penalties or punitive damages; present novel legal theories or legal uncertainties; involve disputed facts; represent a shift in regulatory policy; involve a large number of parties, claimants or regulatory bodies; are in the early stages of the proceedings; involve a number of separate proceedings and/or a wide range of potential outcomes; or result in a change of business practices.
As of the date of this Quarterly Report on Form 10-Q, amounts accrued for legal proceedings and regulatory matters were not material. The Company believes that the ultimate outcome of any of the regulatory and legal proceedings that are currently pending against it should not have a material adverse effect on financial condition, results of operations, cash flow or liquidity. However, it is possible that in a particular quarter or annual period the Company’s financial condition, results of operations, cash flow and/or liquidity could be materially adversely affected by an ultimate unfavorable resolution of, or development in, legal and/or regulatory proceedings.
Refer to the Company’s 2023 Form 10-K for detailed disclosures on legal matters that were settled in 2023.
Intellectual Property Litigation Matters
In May 2023, after receiving a cease-and-desist letter from the Company regarding its patent infringement, Geneoscopy Inc. (“Geneoscopy”) requested a reexamination of the Company’s U.S. Patent No. 11,634,781 (the “’781 Patent”) by the United States Patent and Trademark Office (the “USPTO”). Upon completion of the reexamination in October 2023, the USPTO rejected Geneoscopy’s challenge. In November 2023, the Company filed suit against Geneoscopy in the United States District Court for the District of Delaware, alleging that certain of Geneoscopy’s products infringe the ‘781 Patent and seeking unspecified monetary damages and injunctive relief (the “’781 Action”) and in May 2024, the Company filed a second complaint against Geneoscopy alleging infringement of the Company’s U.S. Patent No. 11,970,746 (the “’746 Patent”), which has been consolidated with the ’781 Action. On June 28, 2024, Geneoscopy filed counterclaims against the Company challenging the validity of the patents at issue and alleging breach of contract, misappropriation of trade secrets, unfair competition, and other violations of state and federal law seeking unspecified monetary damages and injunctive relief, which were amended on August 16, 2024. On July 16, 2024, the Company filed a motion for preliminary injunction seeking an order prohibiting Geneoscopy from selling its infringing Colosense test in the United States. On August 8, 2024, Geneoscopy filed a motion to stay pending inter partes review of the ‘781 Patent, which is fully briefed. On August 30, 2024, the Company filed a motion to dismiss the amended counterclaim, which is fully briefed. On September 3, 2024, the Court entered a stipulated order for briefing and expedited discovery for the Company’s preliminary injunction motion. On September 27, 2024, Geneoscopy filed its opposition to the Company’s motion for preliminary injunction, and the parties are currently engaged in expedited discovery. Briefing for the Company’s motion for preliminary injunction will be complete by the end of November 2024.
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Notes to Condensed Consolidated Financial Statements
(Unaudited)
In January 2024, Geneoscopy petitioned the USPTO to institute an inter partes review (“IPR”) challenging the validity of the ‘781 Patent before the Patent Trial and Appeals Board (“PTAB”). On July 26, 2024, the PTAB notified the Company that it decided to institute review. The Company filed its Patent Owner Response on October 25, 2024, and the parties are currently engaged in discovery. The Company intends to defend the validity of the ‘781 Patent, and a final decision of that review will be made on or before July 30, 2025.
On August 20, 2024, Geneoscopy filed a petition for inter partes review of the ‘746 Patent before the PTAB. The Company’s Patent Owner Preliminary Response is due November 27, 2024. The PTAB is expected to decide on or before February 27, 2025, whether it will institute the IPR. If the IPR is instituted, the Company intends to defend the validity of the ‘746 Patent, and a final decision of that review will be made on or before February 27, 2026.

(14) WISCONSIN ECONOMIC DEVELOPMENT TAX CREDITS
During December 2021, the Company entered into an amended agreement (“Amended WEDC Agreement”) with the Wisconsin Economic Development Corporation (“WEDC”) to earn an additional $18.5 million in refundable tax credits on the condition that the Company expends $350.0 million in capital investments and establishes and maintains 1,300 additional full-time positions over a five-year period. The capital investment credits are earned at a rate of 10% of eligible capital investments up to a maximum of $7.0 million, while the jobs creation credits are earned annually pursuant to the Amended WEDC Agreement.
The tax credits earned are first applied against the tax liability otherwise due, and if there is no such liability present, the claim for tax credits will be reimbursed in cash to the Company. The maximum amount of the refundable tax credit to be earned for each year is fixed, and the Company earns the credits by meeting certain capital investment and job creation thresholds over the term of the Amended WEDC Agreement. Should the Company earn and receive the job creation tax credits but not maintain those full-time positions through the end of the agreement, the Company may be required to pay those credits back to the WEDC.
The Company records the earned tax credits as job creation and capital investments occurs. The tax credits earned from capital investment are recognized as a reduction to capital expenditures at the time the costs are incurred, and then as an offset to depreciation expense over the expected life of the acquired capital assets. The tax credits earned related to job creation are recognized as an offset to operational expenses in the period in which the credits are earned.
As of September 30, 2024, the Company has earned $14.3 million of the refundable tax credits under the Amended WEDC Agreement. The unpaid portion is $8.8 million, of which $4.2 million is reported in prepaid expenses and other current assets and $4.6 million is reported in other long-term assets, net in the Company’s condensed consolidated balance sheets reflecting when collection of the refundable tax credits is expected to occur. During the three and nine months ended September 30, 2024 and 2023, the amounts recorded as an offset to capital expenditures and operating expenses for the tax credits earned were not significant.
(15) ACQUISITIONS AND DIVESTITURES
Business Combinations
Resolution Bioscience, Inc.
On September 12, 2023, the Company completed the acquisition of all of the outstanding capital stock of Resolution Bioscience, Inc. (“Resolution Bioscience”) from Agilent Technologies, Inc. The acquisition provides the Company with a high-quality blood-based therapy selection platform, complementing its comprehensive, tissue-based OncoExTra® test.
Refer to the Company’s 2023 Form 10-K for detailed disclosures on the combination, including the fair value of the consideration transferred, purchase price allocation, and goodwill and intangible assets identified in the transaction. During the three and nine months ended September 30, 2024, there were no significant changes to the purchase price and purchase price allocation, and the measurement period has closed.
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Notes to Condensed Consolidated Financial Statements
(Unaudited)
Divestitures
Oncotype DX Genomic Prostate Score Test
On August 2, 2022, pursuant to an asset purchase agreement (the “Asset Purchase Agreement”) with MDxHealth SA (“MDxHealth”), the Company completed the sale of the intellectual property and know-how related to the Company’s Oncotype DX Genomic Prostate Score test (“GPS test”). On August 23, 2023, the Company and MDxHealth executed the Second Amendment to the Asset Purchase Agreement (the “Second Amendment”). Under the Second Amendment, the Company agreed to allow MDxHealth to defer the 2023 contingent consideration payment by three years in exchange for additional consideration and more favorable contingent consideration terms, including elimination of the minimum revenue thresholds previously required to be met under the Asset Purchase Agreement. Refer to the Company’s 2023 Form 10-K for additional details on the agreements.
As of September 30, 2024 and December 31, 2023, a portion of the contingent consideration is classified as a contract asset. As of September 30, 2024, the contract asset was $48.3 million, of which $25.8 million is included in prepaid expenses and other current assets and $22.5 million is included in other long-term assets, net on the condensed consolidated balance sheet. As of December 31, 2023, the contract asset was $41.7 million, which is included in other long-term assets on the condensed consolidated balance sheet. The contract asset was estimated using historical GPS test revenues by MDxHealth under the most likely amount method. The remaining consideration balance as of September 30, 2024 and December 31, 2023 was $31.6 million, which includes the amount earned during the 2023 earnout year and is classified as a receivable within other long-term assets, net on the condensed consolidated balance sheet. The Company recorded an insignificant contingent consideration gain for the three and nine months ended September 30, 2024, which is included in other operating income in the condensed consolidated statement of operations.
(16) SEGMENT INFORMATION
Management determined that the Company functions as a single operating segment, and thus reports as a single reportable segment. This operating segment is focused on the development and global commercialization of clinical laboratory services allowing healthcare providers and patients to make individualized treatment decisions. Management assessed the financial information routinely reviewed by the Company's Chief Operating Decision Maker, its President and Chief Executive Officer, to monitor the Company's operating performance and support decisions regarding allocation of resources to its operations. Performance is continuously monitored at the consolidated level to timely identify deviations from expected results.
The following table summarizes total revenue from customers by geographic region. Product revenues are attributed to countries based on ship-to location.
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2024202320242023
United States$659,222 $589,739 $1,904,755 $1,741,428 
Outside of United States49,433 38,599 140,688 111,453 
Total revenues$708,655 $628,338 $2,045,443 $1,852,881 
Long-lived assets located in countries outside of the U.S. are not significant.

(17) INCOME TAXES
The Company recorded income tax expense of $0.8 million and $0.2 million for the three months ended September 30, 2024 and 2023, respectively. The Company recorded income tax expense of $4.1 million and $3.0 million for the nine months ended September 30, 2024 and 2023, respectively. The Company’s income tax expense recorded during the three and nine months ended September 30, 2024 is primarily related to current foreign and state tax expense. A deferred tax liability of $19.3 million and $17.3 million was recorded as of September 30, 2024 and December 31, 2023, respectively, which is included in other long-term liabilities on the Company’s condensed consolidated balance sheet. The Company continues to maintain a full valuation allowance against its deferred tax assets based on management’s determination that it is more likely than not the benefit will not be realized.
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Notes to Condensed Consolidated Financial Statements
(Unaudited)
The Company had $42.0 million and $36.4 million of unrecognized tax benefits at September 30, 2024 and December 31, 2023, respectively. These amounts have been recorded as a reduction to the Company’s deferred tax asset, if recognized they would not have an impact on the effective tax rate due to the existing valuation allowance. Certain of the Company's unrecognized tax benefits could change due to activities of various tax authorities, including possible settlement of audits, or through normal expiration of various statutes of limitations. The Company does not expect a material change in unrecognized tax benefits in the next twelve months.
As of September 30, 2024, due to the carryforward of unutilized net operating losses and research and development credits, the Company is subject to U.S. federal income tax examinations for the tax years 2000 through 2024, and to state income tax examinations for the tax years 2000 through 2024. No interest or penalties related to income taxes have been accrued or recognized as of September 30, 2024.
The Organization for Economic Co-operation and Development has endorsed a framework (“Pillar Two”) with model rules introducing a global minimum corporate tax rate via a system where multinational groups with consolidated revenue over €750.0 million are subject to a minimum effective tax rate of 15% on income arising in low-tax jurisdictions on a country-by-country basis. Many countries have implemented laws based on these model rules, with effective dates beginning January 1, 2024. These rules do not have a material impact on the Company for the current period and, as currently designed, are not expected to materially increase the Company’s global tax costs. The Company will continue to monitor U.S. and global legislative action related to Pillar Two for potential impacts.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Objective
The purpose of this Management’s Discussion and Analysis is to better allow our investors to understand and view our Company from management’s perspective. We are providing an overview of our business and strategy including a discussion of our financial condition and results of operations. The following discussion of our financial condition and results of operations should be read in conjunction with the condensed consolidated financial statements and the related notes thereto included elsewhere in this Quarterly Report on Form 10-Q and the audited financial statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Form 10-K”), which has been filed with the U.S. Securities and Exchange Commission (“SEC”).

Forward-Looking Statements
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the “safe harbor” created by those sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” “would,” “could,” “seek,” “intend,” “plan,” “goal,” “project,” “estimate,” “anticipate” or other comparable terms. All statements other than statements of historical facts included in this Quarterly Report on Form 10-Q regarding our strategies, prospects, expectations, financial condition, operations, costs, plans and objectives are forward-looking statements. Examples of forward-looking statements include, among others, statements we make regarding expected future operating results; expectations for development of new or improved products and services and their impact on patients; our strategies, positioning, resources, capabilities and expectations for future events or performance; and the anticipated benefits of our acquisitions, including estimated synergies and other financial impacts. Forward-looking statements are neither historical facts nor assurances of future performance or events. Instead, they are based only on current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Actual results, conditions and events may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause actual results, conditions and events to differ materially from those indicated in the forward-looking statements include, among others, the following: our ability to successfully and profitably market our products and services; the acceptance of our products and services by patients and healthcare providers; our ability to meet demand for our products and services; our reliance upon certain suppliers, including suppliers that are the sole source of certain supplies and products used in our tests and operations; approval and maintenance of adequate reimbursement rates for our products and services within and outside of the U.S.; the amount and nature of competition for our products and services; the effects of any judicial, executive or legislative action affecting us or the healthcare system; recommendations, guidelines and quality metrics issued by various organizations regarding cancer screening or our products and services; our ability to successfully develop and commercialize new products and services and assess potential market opportunities; our ability to effectively enter into and utilize strategic partnerships and acquisitions; our success establishing and maintaining collaborative, licensing and supplier arrangements; our ability to obtain and maintain regulatory approvals and comply with applicable regulations; our ability to protect and enforce our intellectual property; the results of our validation studies and clinical trials, including the risks that the results of future studies and trials may differ materially from the results of previously completed studies and trials; our ability to manage an international business and our expectations regarding our international expansion and opportunities; our ability to raise the capital necessary to support our operations or meet our payment obligations under our indebtedness; the potential effects of changing macroeconomic conditions, including the effects of inflation, interest rate and foreign currency exchange rate fluctuations, and geopolitical conflict; the possibility that the anticipated benefits from our business acquisitions will not be realized in full or at all or may take longer to realize than expected; the possibility that costs or difficulties related to the integration of acquired businesses’ operations or the divestiture of business operations will be greater than expected and the possibility that integration or divestiture efforts will disrupt our business and strain management time and resources; the outcome of any litigation, government investigations, enforcement actions or other legal proceedings; and our ability to retain and hire key personnel. The risks included above are not exhaustive. Other important risks and uncertainties are described in the Risk Factors and in Management’s Discussion and Analysis of Financial Condition and Results of Operations sections of the 2023 Form 10-K and subsequently filed Quarterly Reports on Form 10-Q. You are further cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Except as otherwise required by the federal securities laws, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
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Overview
A leading provider of cancer screening and diagnostic tests, Exact Sciences Corporation (together with its subsidiaries, “Exact,” “we,” “us,” “our” or the “Company”) gives patients and health care professionals the clarity needed to take life-changing action earlier. Building on the success of the Cologuard® and Oncotype DX® tests, we are investing in our pipeline to develop innovative solutions for use before, during, and after a cancer diagnosis.
During the third quarter of 2024, we achieved many critical milestones, including:
•delivering tests results to 1.2 million people including a record number for Cologuard and Oncotype DX,
•growing total revenue 13% year-over-year while leveraging efficiencies in our operating expenses,
•generating cash provided by operating activities of $138.7 million for the three months ended September 30, 2024, an improvement of $114.4 million in comparison to the three months ended September 30, 2023,
•increasing customer satisfaction and brand awareness to all-time highs,
•receiving U.S. Food and Drug Administration (“FDA”) approval for Cologuard PlusTM, our next-generation Cologuard test,
•showcasing data at the European Society for Medical Oncology (“ESMO”) 2024 congress for our liquid biopsy colon cancer screening and multi-cancer screening tests, and
•gaining acceptance from a top-tier journal for the first publication of OncodetectTM, our molecular residual disease (“MRD”) test.

Our Screening Tests
Cologuard Test
Colorectal cancer is the second leading cause of cancer deaths in the United States (“U.S.”) and the leading cause of cancer deaths in the U.S. among non-smokers. Each year in the U.S., there are approximately 153,000 new cases of colorectal cancer and approximately 53,000 deaths. It is widely accepted that colorectal cancer is among the most preventable, yet least prevented cancers.
Our flagship screening product, the Cologuard test, is a patient-friendly, non-invasive stool-based DNA (“sDNA”) screening test that utilizes a multi-target approach to detect DNA and hemoglobin biomarkers associated with colorectal cancer and pre-cancer. Upon approval by the FDA in August 2014, our Cologuard test became the first and only FDA-approved sDNA non-invasive colorectal cancer screening test. Our Cologuard test is now indicated for average risk adults 45 years of age and older. In October 2024, the FDA approved Cologuard Plus, our next-generation Cologuard test, which we expect to launch with Medicare coverage and guideline inclusion in 2025.
Genetic Testing
We provide more than 5,000 predefined genetic tests for nearly all clinically relevant genes, additional custom panels, and comprehensive germline, whole exome (“PGxome®”), and whole genome (“PGnome®”) sequencing tests.
RiskguardTM, our hereditary cancer test, helps people understand their inherited risk of cancer, arming them with critical information to make more informed treatment decisions.

Our Precision Oncology Tests
Our precision oncology portfolio delivers actionable genomic insights to inform prognosis and cancer treatment after a diagnosis. In breast cancer, the Oncotype DX Breast Recurrence Score® test is the only test shown to predict the likelihood of chemotherapy benefit as well as the chance of cancer recurrence in the most common sub-type of early-stage breast cancer. As the only test proven to predict both the likelihood of chemotherapy benefit and cancer recurrence, the Oncotype DX test is recognized globally as standard of care and is included in all major breast cancer treatment guidelines. The OncoExTra® test applies comprehensive tumor profiling, utilizing whole exome and whole transcriptome sequencing, to aid in therapy selection for patients with advanced, metastatic, refractory, relapsed, or recurrent cancer. With an extensive panel of approximately 20,000 genes and 169 introns, the OncoExTra test is one of the most comprehensive genomic (DNA) and transcriptomic (RNA) panels available today. We enable patients to take a more active role in their cancer care and make it easy for providers to order tests, interpret results, and personalize medicine.
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International Business Background and Products
We commercialize or plan to commercialize our Oncotype® tests internationally through employees in Canada, Japan and a number of European countries, as well as through exclusive distribution agreements. We have provided our Oncotype tests in approximately 120 countries outside of the U.S. We do not offer our Cologuard test outside of the U.S.

Upcoming Test Launches
We are preparing to launch in 2025 new screening and diagnostic tests to address unmet patient needs and enhance our existing products.
•Cologuard Plus - Our Cologuard Plus test sets a new performance standard in non-invasive colorectal cancer screening. Our Cologuard Plus test detects cancers and precancerous polyps with even greater sensitivity than our Cologuard test while reducing false positives by more than 30 percent. In October 2024, the FDA approved our Cologuard Plus test for adults ages 45 and older of average risk for colorectal cancer. This approval was based on results from our pivotal BLUE-C study, which showed 95% overall cancer sensitivity and 43% sensitivity for advanced precancerous lesions at 94% specificity when age-weighted to the U.S. population with no findings on colonoscopy. We expect to launch our Cologuard Plus test with Medicare coverage and guideline inclusion in 2025.
•Oncodetect - We expect to launch our Oncodetect MRD test for patients with colorectal cancer, supported by forthcoming data releases and medical journal publications. We recently completed clinical validation of our tumor-informed platform utilizing colorectal cancer samples. Results will be submitted to MolDx for approval and subsequent Medicare reimbursement. Our tumor-informed Oncodetect test is designed to detect small amounts of tumor DNA that may remain in patients’ blood after they have undergone initial colorectal cancer treatment. This test will help patients and oncologists understand the success of initial treatment, guide further treatment, and monitor for cancer recurrence.
Pipeline Research and Development
We are continuing to advance our pipeline of future screening and diagnostic products, including risk assessment, screening and prevention, early disease diagnosis, adjuvant and/or neoadjuvant disease treatment, metastatic disease treatment selection, and patient monitoring.
Through our collaboration with Mayo Foundation for Medical Education and Research (“Mayo”), we have successfully performed validation studies involving multiple types of cancer using tissue, blood, and other sample types. Our research and development programs are also powered by technologies we have exclusively licensed from The Johns Hopkins University, Broad Institute, Inc. (“Broad Institute”), Oxford University, the Ludwig Institute for Cancer Research, and TwinStrand Biosciences, Inc. (“TwinStrand”).
We are focusing our research and development efforts on three main areas:
•Colorectal Cancer Screening. Over the past decade, together with Mayo, we have been seeking to develop even better colorectal cancer screening tests. Beyond Cologuard Plus, we are also working to develop a blood-based screening test for colorectal cancer. In September 2024, we presented performance data for our blood-based colorectal cancer screening test at the ESMO Congress, showing sensitivities of 88% for colorectal cancer and 31% for advanced precancerous lesions at specificity of 90% for negative samples confirmed by colonoscopy. BLUE-C pivotal study results for our blood-based colorectal cancer screening test are expected in the first half of 2025.
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•MRD Test Development. In addition to our expected 2025 launch of Oncodetect for patients with colorectal cancer, we plan to validate Oncodetect for other cancer types, including breast cancer, and continually enhance the performance characteristics of our MRD test offerings over time. We recently completed clinical validation of our tumor-informed platform utilizing colorectal cancer samples. Results will be submitted to MolDx for approval and subsequent Medicare reimbursement. In June 2023, we entered into a sponsored research agreement and exclusive license agreement with Broad Institute to utilize their Minor Allele Enriched Sequencing Through Recognition Oligonucleotides (“MAESTRO”) diagnostic testing technology to further our ability to develop and launch impactful MRD tests. We are developing the MAESTRO platform for use in certain future MRD tests.
•Multi-cancer Screening Test Development. We are currently seeking to develop a multi-cancer screening test, which will be branded as CancerguardTM, to help detect many different types of cancer from a single blood draw. ASCEND-2, a multi-center, prospective, case-control study of over 11,000 clinically characterized participants, validates the sensitivity and specificity of our multi-biomarker class approach across a broad range of cancer types, including the most aggressive cancers and cancers with no current standard of care for screening. We presented initial ASCEND-2 data in April 2024 at the American Association for Cancer Research (“AACR”) annual meeting, which demonstrated the ability to detect cancer signals from 21 cancer types with a mean sensitivity of 50.9% with 98.5% specificity and 56.8% sensitivity when breast and prostate cancer were excluded from the analysis. We plan to share additional analyses from ASCEND-2 at an upcoming scientific conference. Our multi-cancer screening test was recently approved by the FDA to be used within a real-world evidence study, providing an opportunity to test 25,000 people over the next three years. The first patient was enrolled within this study at Baylor Scott & White, the primary study site, in August 2024. In the future, we plan to begin recruiting patients for the FDA registrational Study of All comeRs (“SOAR”) trial, which we expect to be the largest prospective, interventional multi-cancer screening trial ever conducted in the U.S.
Research and development, which includes our clinical study programs, accounts for a material portion of our operating expenses. As we seek to enhance our product portfolio and advance our pipeline, we expect that our research and development expenditures will continue to be a significant portion of our operating expenditures.

2024 Priorities
Our top priorities for 2024 are to (1) focus on our people and customers, (2) bring our portfolio to life, and (3) magnify our impact.
Focus on our People and Customers
We want to continue to provide an exceptional experience for our patients and team members. We plan to improve customer relations by delivering simple and smooth workflows, providing communication that is clear and easy to understand, and providing results that are fast and accurate. We will also strive to ensure that Exact Sciences remains a great place to work by taking care of our people.
Bring our Portfolio to Life
We will focus on advancing new tests in our highest priority programs including colorectal cancer screening, MRD, and multi-cancer screening. We plan to continue investing in our clinical trials to enhance existing products and bring new products to patients and providers, including obtaining FDA approval and securing coverage for our next generation Cologuard test, Cologuard Plus.
Magnify our Impact
We are committed to improving lives through testing more people with our laboratory testing services in 2024 including expanding screening access to underserved populations. By testing more people, we will continue to expand our business in a cost-efficient manner allowing us to generate sustainable profits and increase shareholder value. Generating sustained profits will put the company in a better position to continue investing in life-changing cancer diagnostics to help achieve our mission.
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Recent Developments and Trends
We estimate there are up to 60 million Americans that are not up to date with their colon cancer screenings. The capacity for screening colonoscopies in the U.S. is relatively fixed because it is dependent on the number of gastroenterologists available to perform the procedures. Health systems, payers, and health care providers are motivated to increase screening rates because they are measured as part of the Healthcare Effectiveness Data and Information Set (“HEDIS”) and Medicare Stars quality measure systems. More health systems and payers are recognizing the opportunity to partner with Exact Sciences to address their screening rates and related quality measures through large, organized screening programs. We aim to partner with them to implement our Cologuard test within these programs as a solution for patients who infrequently visit their health care provider. Cologuard utilization is increasing in this setting, helping us screen more Americans.
We have an opportunity to impact even more lives by increasing adoption of Oncotype DX tests internationally. In 2023, we secured reimbursement for the Oncotype DX test in Japan. Breast cancer is the most common cancer among Japanese women, with about 45,000 new diagnoses of early-stage HR+, HER2- breast cancer each year. With reimbursement in place, we estimate our Oncotype DX test could help more than 100 women per day understand if their cancer is likely to recur and whether chemotherapy should be used in their treatment plan.

Results of Operations
We have incurred losses since our inception and, as of September 30, 2024, we had an accumulated deficit of approximately $3.63 billion. While our operating results have continued to improve, we expect to incur net losses for the near future, and it is possible we may never become profitable or sustain profitability.
Revenue. Our Screening revenue primarily includes laboratory service revenue from our Cologuard and Prevention Genetics, LLC (“PreventionGenetics”) tests while our Precision Oncology revenue primarily includes laboratory service revenue from global Oncotype DX and therapy selection tests.
Three Months Ended September 30,
Amounts in millions20242023Change
Screening$544.9 $472.0 $72.9 
Precision Oncology163.8 156.3 7.4 
Total$708.7 $628.3 $80.3 
Nine Months Ended September 30,
Amounts in millions20242023Change
Screening$1,551.3 $1,378.0 $173.3 
Precision Oncology494.1 468.9 25.2 
COVID-19 Testing— 6.0 (6.0)
Total$2,045.4 $1,852.9 $192.5 
The increase in Screening revenue was mainly due to an increase in the number of completed Cologuard tests. The increase in completed Cologuard tests for the three and nine months ended September 30, 2024 was due to growth across all customer segments, more patients rescreening with our Cologuard test, and expansion of organized screening programs run by payers and health systems. The increase in Precision Oncology revenue was mainly due to an increase in the number of completed Oncotype DX breast cancer tests, both domestically and internationally, led by an increased number of ordering providers outside the U.S., specifically in Japan. We discontinued our COVID-19 testing business in the second quarter of 2023 due to lower demand, which led to the decrease in COVID-19 testing revenue. A discussion on our COVID-19 testing business was provided in our Annual Report on Form 10-K for the year ended December 31, 2023.
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Adjustments to revenue recognized during the period relating to prior period estimates were less than 1% of revenue recorded in our condensed consolidated statement of operations for the three and nine months ended September 30, 2024. Adjustments to revenue recognized during the period relating to prior period estimates were less than 2% of revenue recorded in our condensed consolidated statement of operations for the three and nine months ended September 30, 2023. The impact to revenue for the three and nine months ended September 30, 2023 was due to improvements made in our billing systems and processes, including international contracting and collections.
We expect continuing revenue growth for our Cologuard and Oncotype tests subject to seasonal variability. Our revenues are affected by the test volume of our products, patient adherence rates, payer mix, the levels of reimbursement, our order to cash operations, and payment patterns of payers and patients.
Cost of sales (exclusive of amortization of acquired intangible assets). The increase in cost of sales for the three and nine months ended September 30, 2024 was primarily due to an increase in production costs, personnel expenses, and facility and support services, which was a result of an increase in completed Cologuard and Oncotype tests and the corresponding increase in headcount to support the increase in tests completed. Cost of sales (exclusive of amortization of acquired intangible assets) as a percentage of revenue increased for the three and nine months ended September 30, 2024 compared to the same periods in 2023, primarily due to higher Cologuard test volume from organized screening programs run by payers and health systems. We expect that cost of sales will generally continue to increase in future periods as a result of an increase in our existing laboratory testing services and as we launch our pipeline products. We also expect to see a corresponding increase in personnel and support services associated with this growth.
Three Months Ended September 30,
Amounts in millions20242023Change
Production costs$125.6 $102.6 $23.0 
Personnel expenses48.2 45.8 2.4 
Facility and support services17.3 13.6 3.7 
Stock-based compensation4.9 5.3 (0.4)
Other cost of sales expenses0.1 1.2 (1.1)
Total cost of sales expense$196.1 $168.5 $27.6 
Nine Months Ended September 30,
Amounts in millions20242023Change
Production costs$341.6 $289.2 $52.4 
Personnel expenses146.4 134.4 12.0 
Facility and support services50.4 40.3 10.1 
Stock-based compensation15.7 15.6 0.1 
Other cost of sales expenses1.9 2.9 (1.0)
Total cost of sales expense$556.0 $482.4 $73.6 
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Research and development expenses. The decrease in research and development expenses for the three months ended September 30, 2024 was primarily due to a decrease in resources needed to support our ongoing clinical studies as discussed in further detail above. The increase in research and development expenses for the nine months ended September 30, 2024 was primarily due to the termination of a license agreement with The Translational Genomics Research Institute (“TGen”) resulting in the recognition of an expense of $25.8 million in the second quarter of 2024. In addition, personnel expenses grew for the nine months ended September 30, 2024 is primarily due to an increase in average headcount during the year. This was partially offset by a decrease in direct research and development costs as discussed above. We expect that research and development expenses will generally continue to increase in future periods as we continue to invest to advance new tests.
Three Months Ended September 30,
Amounts in millions20242023Change
Personnel expenses$43.7 $44.3 $(0.6)
Direct research and development28.4 36.6 (8.2)
Facility and support services14.4 17.0 (2.6)
Stock-based compensation9.3 10.5 (1.2)
Professional fees3.2 2.3 0.9 
Other research and development1.1 0.7 0.4 
Total research and development expenses$100.1 $111.4 $(11.3)
Nine Months Ended September 30,
Amounts in millions20242023Change
Personnel expenses$141.0 $129.9 $11.1 
Direct research and development81.2 96.1 (14.9)
Facility and support services43.0 46.5 (3.5)
Stock-based compensation31.1 31.0 0.1 
License agreement termination25.8 — 25.8 
Professional fees7.7 5.5 2.2 
Other research and development1.8 2.0 (0.2)
Total research and development expenses$331.6 $311.0 $20.6 
Sales and marketing expenses. Sales and marketing expenses increased for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023 due to continued investment in high impact sales and marketing opportunities. We anticipate sales and marketing expenses will generally increase in future periods as we reinvest in sales and marketing to meet demand for current products and the launch of new products, while continuing to decrease as a percentage of revenue over time, driven by the growth of Cologuard and Oncotype testing services.
Three Months Ended September 30,
Amounts in millions20242023Change
Personnel expenses$110.6 $99.7 $10.9 
Direct marketing costs49.3 39.4 9.9 
Professional and legal fees15.4 12.1 3.3 
Stock-based compensation14.5 17.5 (3.0)
Facility and support services4.5 4.0 0.5 
Other sales and marketing expenses0.4 0.5 (0.1)
Total sales and marketing expenses$194.7 $173.2 $21.5 
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Nine Months Ended September 30,
Amounts in millions20242023Change
Personnel expenses$326.9 $310.8 $16.1 
Direct marketing costs 145.2 131.3 13.9 
Stock-based compensation44.8 48.8 (4.0)
Professional and legal fees44.3 30.7 13.6 
Facility and support services10.0 12.6 (2.6)
Other sales and marketing expenses1.1 2.4 (1.3)
Total sales and marketing expenses$572.3 $536.6 $35.7 
General and administrative expenses. The decrease in general and administrative expenses for the three months ended September 30, 2024 was primarily due to a reduction in certain incentive-based compensation arrangements and a reduction in other discretionary spend including professional and legal fees as a result of our cost savings measures that were implemented. The decrease in general and administrative expenses for the nine months ended September 30, 2024 was primarily due to the settlement of certain legal matters in 2023, as further described in Note 15 of our Annual Report on Form 10-K for the year ended December 31, 2023.These reductions were partially offset by increases in other general and administrative expense as a result of the change in fair value of our outstanding contingent consideration liabilities. Refer to Note 7 of our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for further discussion of our outstanding contingent consideration liabilities. We expect general and administrative expenses throughout the remainder of 2024 will remain relatively consistent with costs incurred thus far in 2024. We expect general and administrative expenses will decrease over time as we leverage efficiencies in our personnel and information technology systems.
Three Months Ended September 30,
Amounts in millions20242023Change
Personnel expenses$98.1 $101.3 $(3.2)
Facility and support services48.8 45.9 2.9 
Professional and legal fees30.8 34.5 (3.7)
Stock-based compensation20.1 28.6 (8.5)
Other general and administrative19.4 7.1 12.3 
Total general and administrative expenses$217.2 $217.4 $(0.2)
Nine Months Ended September 30,
Amounts in millions20242023Change
Personnel expenses$312.2 $294.0 $18.2 
Facility and support services138.0 133.2 4.8 
Professional and legal fees98.1 136.2 (38.1)
Stock-based compensation74.1 77.3 (3.2)
Other general and administrative39.8 32.0 7.8 
Total general and administrative expenses$662.2 $672.7 $(10.5)
Amortization of acquired intangible assets. Amortization of acquired intangible assets increased to $24.4 million for the three months ended September 30, 2024 compared to $23.0 million for the three months ended September 30, 2023. Amortization of acquired intangible assets increased to $71.1 million for the nine months ended September 30, 2024 compared to $68.8 million for the nine months ended September 30, 2023. The increase was primarily due to amortization of the intangible asset acquired as part of our acquisition of Resolution Bioscience in September 2023 and our acquisition of intellectual property through a license from TwinStrand in July 2024.
Impairment of long-lived assets. Impairment of long-lived assets was $18.7 million and $31.3 million for the three and nine months ended September 30, 2024, respectively, compared to zero and $0.6 million for the three and nine months ended September 30, 2023. The impairment charges recorded during the three and nine months ended September 30, 2024 and 2023 related to the closure of certain of our domestic facilities.
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Other operating income. Other operating income was $3.1 million and $6.6 million for the three and nine months ended September 30, 2024 compared to $72.0 million for the three and nine months ended September 30, 2023. The income recorded for the three and nine months ended September 30, 2024 represents the remeasurement of the contingent consideration asset from the sale of the Oncotype DX Genomic Prostate Score test to MDxHealth SA (“MDxHealth”). The income recorded for the three and nine months ended September 30, 2023 included a $68.9 million contingent consideration gain and $3.1 million in additional consideration received from MDxHealth.
Investment income, net. Investment income, net increased to $11.6 million for the three months ended September 30, 2024 compared to $2.1 million for the three months ended September 30, 2023. Investment income, net increased to $29.6 million for the nine months ended September 30, 2024 compared to $7.4 million for the nine months ended September 30, 2023. The investment income recorded for the three and nine months ended September 30, 2024 and 2023 was primarily due to gains recorded on our marketable securities.
Interest expense. Interest expense was $9.6 million for the three months ended September 30, 2024 compared to $7.9 million for the three months ended September 30, 2023. Interest expense recorded from our outstanding convertible notes totaled $8.9 million and $6.3 million for the three months ended September 30, 2024 and 2023, respectively. Interest expense increased to $17.4 million for the nine months ended September 30, 2024 compared to $11.6 million for the nine months ended September 30, 2023. Interest expense recorded from our outstanding convertible notes totaled $23.6 million and $17.3 million for the nine months ended September 30, 2024 and 2023, respectively. Interest expense included a net gain on settlement of convertible notes of $10.3 million and $10.3 million for the nine months ended September 30, 2024 and 2023, respectively. The convertible notes are further described in Note 9 of our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.
Income tax expense. Income tax expense increased to $0.8 million for the three months ended September 30, 2024 compared to $0.2 million for the three months ended September 30, 2023. Income tax expense increased to $4.1 million for the nine months ended September 30, 2024 compared to $3.0 million for the nine months ended September 30, 2023. Income tax expense for the three and nine months ended September 30, 2024 and 2023 was primarily related to current foreign and state tax expense.
Liquidity and Capital Resources
Overview
We have incurred losses since our inception, and have historically financed our operations primarily through public offerings of our common stock and convertible debt and through revenue generated by the sale of our laboratory testing services. We expect our operating expenditures to continue to increase to support future growth of our laboratory testing services, as well as an increase in research and development and clinical trial costs to support the advancement of our pipeline products and bringing new tests to market. We expect that cash, cash equivalents and marketable securities on hand at September 30, 2024, along with cash flows generated through our operations, will be sufficient to fund our current operations for at least the next twelve months based on current operating plans.
We have access to a revolving line-of-credit (the “Revolver”) of up to $150.0 million, which had its maturity date extended to November 2025 through an amended agreement in October 2022. The Revolver is collateralized by certain marketable securities which must continue to maintain a minimum market value of $150.0 million. PNC Bank, National Association has issued letters of credit totaling $4.4 million, which reduces the amount available for cash advances under the line of credit to $145.6 million. As of September 30, 2024, we had not drawn any funds under the Revolver. The Revolver is further described in Note 8 of our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.
We may raise additional capital to expand our business, to pursue strategic investments, to take advantage of financing opportunities or for other reasons. If we are unable to obtain sufficient additional funds to enable us to fund our business plans and strategic investments, our results of operations and financial condition could be materially adversely affected, and we may be required to delay the implementation of our plans or otherwise scale back our operations. There can be no certainty that we will ever be successful in generating sufficient cash flow from operations to achieve and maintain profitability and meet all of our obligations as they come due.
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Cash, Cash Equivalents and Marketable Securities
As of September 30, 2024, we had approximately $588.8 million in unrestricted cash and cash equivalents and approximately $432.3 million in marketable securities.
The majority of our investments in marketable securities consist of fixed income investments, and all are deemed available-for-sale. The objectives of this portfolio are to provide liquidity and safety of principal while striving to achieve the highest rate of return. Our investment policy limits investments to certain types of instruments issued by institutions with investment grade credit ratings and places restrictions on maturities and concentration by type and issuer.
Cash Flows
Nine Months Ended September 30,
Amounts In millions20242023
Net cash provided by operating activities$163.5 $86.6 
Net cash provided by (used in) investing activities(400.3)116.4 
Net cash provided by financing activities221.4 149.7 
Operating activities
The increase in cash provided by operating activities for the nine months ended September 30, 2024 was primarily due to an increase in revenue. This was partially offset by an increase in operating expenses and cost of sales to support the increase in revenue as discussed in the Results of Operations section above and timing of payments on our accounts payable and accrued expenses and collections of our accounts receivable.
Investing activities
The increase in cash used in investing activities for the nine months ended September 30, 2024 compared to cash provided by investing activities for the nine months ended September 30, 2023 was due to a net increase of $507.4 million in cash used for purchases, maturities and sales of marketable securities as a result of a change in investing strategy towards more fixed income securities compared to money market funds as money market yields have decreased. We also increased our purchases of property, plant and equipment by $10.4 million due to additional investments in information technology infrastructure and lab automation. The increase in cash used in investing activities was partially offset by a decrease in cash used related to business combinations and asset acquisitions. We made payments of $45.0 million for our license of intellectual property from TwinStrand during the third quarter of 2024 compared to a cash payment of $50.0 for our acquisition of Resolution Bioscience, Inc. in the third quarter of 2023.
Financing activities
The increase in cash provided by financing activities during the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 was primarily due to proceeds of $266.8 million from the issuance of convertible notes in the second quarter of 2024 compared to proceeds of $138.0 million from the issuance of convertible notes in the first quarter of 2023. This was partially offset by a payment of $50.0 million in settlement of our previously outstanding accounts receivable securitization facility (“Securitization Facility”) upon maturity in June 2024.
Material Cash Requirements
A discussion of our material cash requirements as of December 31, 2023 was provided in the Management’s Discussion and Analysis of Financial Condition and Results of Operation of our 2023 Form 10-K. Other than the matters described below, there were no material changes outside the ordinary course of our business in our specified material cash requirements during the nine months ended September 30, 2024.
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In April 2024, we entered into privately negotiated agreements (the “Agreements”) with certain holders of our convertible notes due in 2028 (“2028 Notes”). Pursuant to the Agreements, we issued $620.7 million aggregate principal amount of a new series of Convertible Notes due in 2031 (the “2031 Notes”) in exchange for (i) the retirement of $359.7 million in aggregate principal amount of 2028 Notes, and (ii) payment to the Company of $266.8 million in cash. The net proceeds from the issuance of the Notes were approximately $259.8 million, after deducting commissions and the offering expenses payable by the Company. The 2031 Notes mature on April 15, 2031 and bear interest at a fixed rate of 1.75% per year, payable semiannually in arrears on October 15 and April 15 of each year, beginning on October 15, 2024.
As of September 30, 2024, we had outstanding aggregate principal of $249.2 million on our convertible notes with a maturity date of January 15, 2025 (the “2025 Notes”), which are classified as convertible notes, net, current portion on the condensed consolidated balance sheet. Beginning July 15, 2024, which is six months prior to the maturity date of the 2025 Notes, holders of the 2025 Notes may elect to convert such notes at any time. In accordance with the terms of the 2025 Notes, any 2025 Notes that are converted after July 15, 2024 will be settled through a combination settlement under which the par value will be settled in cash and any amount in excess of par value will be settled in shares of our common stock. 2025 Notes that are not converted prior to the maturity date will be settled in cash upon maturity.
In June 2024, we repaid the previously outstanding balance of $50.0 million in full upon maturity of the Securitization Facility. Prior to maturity, the Securitization Facility accrued interest at a rate equal to a daily secured overnight financing rate (“SOFR”) plus a SOFR adjustment and an applicable margin. The interest rate was 6.87% as of the maturity date.
As of September 30, 2024, we had no off-balance sheet arrangements.

Critical Accounting Policies and Estimates
Management’s discussion and analysis of our financial condition and results of operations is based on our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the U.S. The preparation of these financial statements requires us to make estimates and assumptions that affect the amounts reported in our condensed consolidated financial statements and accompanying notes. On an ongoing basis, we evaluate our estimates and judgments. We base our estimates on historical experience and on various other factors that are believed to be appropriate under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
For a discussion of our critical accounting policies and estimates, refer to our Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2023 Form 10-K. There have been no material changes to our critical accounting policies and estimates since our 2023 Form 10-K.
Recent Accounting Pronouncements
See Note 1 of our condensed consolidated financial statements for the discussion of Recent Accounting Pronouncements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk
Interest Rate Risk
Our exposure to market risk is principally confined to our cash, cash equivalents and marketable securities and our outstanding variable-rate debt. We invest our cash, cash equivalents, and marketable securities in securities of the U.S. governments and its agencies and in investment-grade, highly liquid investments consisting of commercial paper, bank certificates of deposit, and corporate bonds, which as of September 30, 2024 and December 31, 2023 were classified as available-for-sale. We place our cash, cash equivalents, restricted cash, and marketable securities with high-quality financial institutions, limit the amount of credit exposure to any one institution, and have established investment guidelines relative to diversification and maturities designed to maintain safety and liquidity.
Based on a hypothetical 100 basis point decrease in market interest rates, the potential losses in future earnings, fair value of risk-sensitive financial instruments, and cash flows are immaterial, although the actual effects may differ materially from the hypothetical analysis. While we believe our cash, cash equivalents, restricted cash, and marketable securities do not contain excessive risk, we cannot provide absolute assurance that, in the future, our investments will not be subject to adverse changes
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in market value. In addition, we maintain significant amounts of cash, cash equivalents, restricted cash, and marketable securities at one or more financial institutions that are in excess of federally insured limits. Given the potential instability of financial institutions, we cannot provide assurance that we will not experience losses on these deposits. We do not utilize interest rate hedging agreements or other interest rate derivative instruments.
As of September 30, 2024, we had no outstanding variable rate debt. If we were to draw down amounts under our Revolving Loan, we would be impacted by increases in prevailing market interest rates. All of our other significant interest-bearing liabilities bear interest at fixed rates and therefore are not subject to fluctuations in market interest rates; however, because these interest rates are fixed, we may be paying a higher interest rate, relative to market, in the future if circumstances change.
Foreign Currency Risk
The functional currency for most of our international subsidiaries is the U.S. dollar, and as a result we are not subject to material gains and losses from foreign currency translation of the subsidiary financial statements. Substantially all of our revenues are recognized in U.S. dollars, although a small portion is denominated in foreign currency as we continue to expand into markets outside of the U.S. Certain expenses related to our international activities are payable in foreign currencies. As a result, factors such as changes in foreign currency exchange rates or weak economic conditions in foreign markets will affect our financial results.
We enter into forward contracts to mitigate the impact of adverse movements in foreign exchange rates related to the re-measurement of monetary assets and liabilities and hedge our foreign currency exchange rate exposure. As of September 30, 2024, we had open foreign currency forward contracts with notional amounts of $47.7 million. Although the impact of currency fluctuations on our financial results has been immaterial in the past, there can be no guarantee that the impact of currency fluctuations related to our international activities will not be material in the future.

Item 4. Controls and Procedures
As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and our principal financial officer, of the effectiveness of our disclosure controls and procedures, as defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based upon that evaluation, our principal executive officer and our principal financial officer concluded that, as of September 30, 2024, our disclosure controls and procedures were effective. Disclosure controls and procedures enable us to record, process, summarize and report information required to be included in our Exchange Act filings within the required time period. Our disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed by us in the periodic reports filed with the SEC is accumulated and communicated to our management, including our principal executive, financial and accounting officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
There have been no significant changes in internal control over financial reporting during the quarter ended September 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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Part II - Other Information

Item 1. Legal Proceedings
From time to time we are a party to various legal proceedings arising in the ordinary course of our business. Legal proceedings, including litigation, government investigations and enforcement actions could result in material costs, occupy significant management resources and entail civil and criminal penalties. The information called for by this item is incorporated by reference to the information in Note 13 of our condensed consolidated financial statements included in Part I of this Quarterly Report on Form 10-Q.

Item 1A. Risk Factors
We operate in a rapidly changing environment that involves a number of risks that could materially affect our business, financial condition or future results, some of which are beyond our control. In addition to the other information set forth in this report, the risks and uncertainties that we believe are most important for you to consider are discussed in Part I, “Item 1A. Risk Factors” in the 2023 Form 10-K and in Part II, “Item 1A. Risk Factors” in our subsequently filed Quarterly Reports on Form 10-Q. There have been no material changes to the risk factors described in the 2023 Form 10-K and subsequently filed Quarterly Report on Form 10-Q.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Not applicable.

Item 3. Defaults Upon Senior Securities
Not applicable.

Item 4. Mine Safety Disclosures
Not applicable.

Item 5. Other Information
Rule 10b5-1 Trading Plans
During the third quarter of 2024, none of the Company’s directors or executive officers adopted or terminated any “Rule 10b5-1 trading arrangement” or any “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.
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Item 6. Exhibits
The following documents are filed as part of this Form 10-Q.
Exhibit
Number		Exhibit DescriptionFiled
with
This
Report		Incorporated
by Reference
herein from
Form or
Schedule		Filing
Date		SEC File /
Registration
Number
Sixth Amended and Restated Certificate of Incorporation of the RegistrantS-1 (Exhibit 3.3)12/4/2000333-48812
Certificate of Amendment, dated July 23, 2020, to the Sixth Amended and Restated Certificate of Incorporation of the Registrant8-K (Exhibit 3.1)7/24/2020001-35092
Certificate of Amendment, dated June 9, 2023, to the Sixth Amended and Restated Certificate of Incorporation of the Registrant8-K (Exhibit 3.1)6/12/2023001-35092
Seventh Amended and Restated By-Laws of the Registrant8-K (Exhibit 3.2)6/12/2023001-35092
First Amendment to Employment Agreement, dated July 31, 2024, by and between Aaron Bloomer and the Registrant
X
First Amendment to Employment Agreement, dated July 31, 2024, by and between Jake Orville and the Registrant
X
First Amendment to Employment Agreement, dated July 31, 2024, by and between Brian Baranick and the Registrant
X
Second Amendment to Employment Agreement, dated July 31, 2024, by and between Sarah Condella and the Registrant
X
The Registrant’s 2010 Employee Stock Purchase Plan (as amended and restated on July 31, 2024)
X
Certification Pursuant to Rule 13(a)-14(a) or Rule 15d-14(a) of Securities Exchange Act of 1934X
Certification Pursuant to Rule 13(a)-14(a) or Rule 15d-14(a) of Securities Exchange Act of 1934X
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002X
101
The following materials from the Quarterly Report on Form 10-Q of Exact Sciences Corporation for the quarter ended September 30, 2024 filed on November 5, 2024, formatted in Inline eXtensible Business Reporting Language (“iXBRL”): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statement of Changes in Stockholders’ Equity, (iv) Condensed Consolidated Statements of Cash Flows and (v) related notes to these financial statements
X
104
The cover page from our Quarterly Report for the period ended September 30, 2024, filed with the Securities and Exchange Commission on November 5, 2024, is formatted in Inline Extensible Business Reporting Language (“iXBRL”)
X
(*) Indicates a management contract or any compensatory plan, contract or arrangement.

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
EXACT SCIENCES CORPORATION
Date: November 5, 2024
By:/s/ Kevin T. Conroy
Kevin T. Conroy
President and Chief Executive Officer
(Principal Executive Officer)
Date: November 5, 2024
By:
/s/ Aaron Bloomer
Aaron Bloomer
Executive Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)

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