v3.25.4
RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2025
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONS
Illumina Purchases and Sales
The Company was a subsidiary of Illumina, Inc. between August 19, 2021 to June 23, 2024. Subsequent to the Spin-Off, Illumina retained 4,502,126 shares which represented a 14.5% stake in the Company as of the Spin-Off. During the fourth quarter of 2025, Illumina sold 2,000,000 shares of the Company’s common stock, reducing its ownership to 2,502,126 shares, which represented approximately 6.0% of the Company’s outstanding common stock as of December 31, 2025. On February 17, 2026, Illumina filed a Schedule 13G reporting beneficial ownership of 1,302,126 shares of our common stock.
As a result of the reduction in ownership, Illumina no longer meets the definition of a related party. Accordingly, following Illumina’s disposition on November 17, 2025, transactions and balances with Illumina are no longer considered related-party transactions.
Illumina is both a customer of the Company and a major supplier of the Company’s reagents and capital equipment. Goods and services transactions with Illumina are invoiced and paid when due.
Goods and services transactions with Illumina, have been reflected in the consolidated financial statements for the periods during which Illumina qualified as a related party of the Company, as follows:
As of
(in thousands)December 31, 2024
Accounts receivable
$65 
Supplies
3,130 
Prepaid expenses and other current assets
77 
Property and equipment, net
2,227 
Accrued liabilities
104 
Year Ended
(in thousands)
December 31, 2025 (1)
December 31,
2024
December 31,
2023
Screening revenue
$208 $460 $652 
Cost of screening revenue
4,617 13,091 8,532 
Cost of development services revenue
275 637 238 
Operating expenses—Research and development
3,306 18,843 19,508 
Operating expenses—General and administrative
— 104 206 
(1) Included transactions from January 1, 2025 through November 17, 2025

In June 2024, the Company entered into an amendment to its Supply and Commercialization Agreement with Illumina. Under the terms of the amended agreement, regardless of whether its products incorporate any Illumina technology, the Company has agreed to pay to Illumina a high single-digit royalty, subject to certain reductions, in perpetuity on net sales generated by its products or revenues otherwise generated or received by the Company, subject to certain exceptions, in the field of oncology. Per the terms of the Separation and Distribution Agreement with Illumina, the royalty arrangement is suspended until the earlier of December 24, 2026 or any earlier change of control of the Company, at which time a high-single digit royalty payments will be payable.