Annual report pursuant to Section 13 and 15(d)

Revenue and Accounts Receivable

v3.3.1.900
Revenue and Accounts Receivable
12 Months Ended
Dec. 31, 2015
Receivables [Abstract]  
Revenue and Accounts Receivable
Revenue and Accounts Receivable

Revenue by service type for each of the years ended December 31 is comprised of the following (in thousands):
 
 
 
2015
 
2014
 
2013
Biopharma Services
 
$
11,564

 
$
5,606

 
$
2,650

Clinical Services
 
5,651

 
4,432

 
3,663

Discovery Services
 
825

 
161

 

Grants
 

 

 
297

 
 
$
18,040

 
$
10,199

 
$
6,610


The table above includes approximately $486,000 of biopharma services revenue and approximately $1,265,000 of clinical services revenue from our acquisition of Response Genetics for the period October 9, 2015 through December 31, 2015.
Accounts receivable by service type at December 31, 2015 and 2014 consists of the following (in thousands):
 
 
 
2015
 
2014
Biopharma Services
 
$
3,238

 
$
3,203

Clinical Services
 
3,733

 
1,925

Discovery Services
 
314

 
151

Allowance for doubtful accounts
 
(664
)
 
(251
)
 
 
$
6,621

 
$
5,028



Allowance for Doubtful Accounts (in thousands)
Balance, December 31, 2013
 
$
36

Additions to allowance for doubtful accounts
 
215

Balance, December 31, 2014
 
251

Additions to allowance for doubtful accounts
 
413

Balance, December 31, 2015
 
$
664



Revenue for Biopharma Services are customized solutions for patient stratification and treatment selection through an extensive suite of DNA-based testing services. Clinical Services are tests performed to provide information on diagnosis, prognosis and theranosis of cancers to guide patient management. These tests can be billed to Medicare, another third party insurer or the referring community hospital or other healthcare facility. Discovery Services are services that provide the tools and testing methods for companies and researchers seeking to identify new DNA-based biomarkers for disease. Grants includes revenue from grants. The breakdown of our Clinical Services revenue (as a percent of total revenue) is as follows:

 
 
2015
 
2014
 
2013
Medicare
 
10
%
 
11
%
 
13
%
Other insurers
 
12
%
 
16
%
 
25
%
Other healthcare facilities
 
9
%
 
16
%
 
18
%
Total Clinical Services
 
31
%
 
43
%
 
56
%
We have historically derived a significant portion of our revenue from a limited number of test ordering sites. Test ordering sites account for all of our Clinical Services and Biopharma Services revenue. Our test ordering sites are largely hospitals, cancer centers, reference laboratories, physician offices and biopharmaceutical companies. Oncologists and pathologists at these sites order the tests on behalf of the needs of their oncology patients or as part of a clinical trial sponsored by a biopharmaceutical company in which the patient is being enrolled. We generally do not have formal, long-term written agreements with such test ordering sites, and, as a result, we may lose a significant test ordering site at any time.
The top five test ordering clients during 2015, 2014 and 2013 accounted for 49%, 56% and 69% respectively, of our testing volumes, with 18%, 38% and 36% respectively, of the test volume coming from community hospitals. During the year ended December 31, 2015, one Biopharma client accounted for approximately 19% of our revenue. During the year ended December 31, 2014 there were two Biopharma clients that accounted for approximately 23% and 12%, respectively, of our revenue. During 2013, there was one client that accounted for approximately 40% of our revenue.