Annual report pursuant to Section 13 and 15(d)

Significant Customers

Significant Customers
12 Months Ended
Dec. 31, 2021
Risks and Uncertainties [Abstract]  
Significant Customers

Note 14 – Significant Customers Concentrations


Revenue for Fiscal 2021 and Fiscal 2020 was $79.0 million and $14.5 million, respectively. Three diagnostic services clients accounted for 23.5%, 17.9%, and 11.9%, respectively, of our net revenue for the year ended December 31, 2021. For Fiscal 2020, two third-party contract manufacturing customers accounted for 47.1% and 17.2%, respectively, of revenues from continuing operations. The loss of sales to any of these large customers could have a material adverse effect on our business operations and financial condition. Collections of diagnostic services revenues are driven by payers, which are government agencies (primarily HRSA), insurance providers, and client payers. In Fiscal 2021, requisitions from each payer group were 60%, 35%, and 5%, respectively.


We are subject to account receivable credit concentrations from time-to-time as a result of the timing, payment pattern and ultimate purchase volumes or shipping schedules with our customers. These concentrations may impact our overall exposure to credit risk, either positively or negatively, in that our customers may be similarly affected by changes in economic, regulatory or other conditions that may impact the timing and collectability of amounts due to us. Four diagnostic services payers generated 43.0%, 11.6%, 10.7% and 10.7% of our total reimbursement receivable balances from government agencies and healthcare issuers at December 31, 2021. Three of our consumer products customers represented 36%, 20% and 13% of our total trade receivable balances at December 31, 2020.


Currently, we rely on a sole supplier to manufacture our saliva collection kits used by customers who purchase our personal genomics services. Change in the supplier or design of certain of the materials that we rely on, in particular the saliva collection kit, could result in a requirement for additional premarket review from the FDA before making such a change.