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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2015	May 01, 2015
Document and Entity Information
Entity Registrant Name	VERACYTE, INC.
Entity Central Index Key	0001384101
Document Type	10-Q
Document Period End Date	Mar. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		27,462,532
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 25,798	$ 35,014
Accounts receivable, net of allowance of $85 and $84 as of March 31, 2015 and December 2014	2,564	3,050
Supplies inventory	3,732	3,696
Prepaid expenses and other current assets	1,179	1,218
Deferred tax asset	300	300
Restricted cash	118	70
Total current assets	33,691	43,348
Property and equipment, net	4,132	4,161
In-process research and development	16,000	16,000
Goodwill	1,057	1,057
Restricted cash		118
Other assets	180	155
Total assets	55,060	64,839
Current liabilities:
Accounts payable	6,854	7,397
Accrued liabilities	5,396	7,851
Deferred Genzyme co-promotion fee	1,897	1,897
Total current liabilities	14,147	17,145
Long-term debt	4,949	4,923
Deferred tax liability	300	300
Deferred rent, net of current portion	111	149
Deferred Genzyme co-promotion fee, net of current portion	474	948
Total liabilities	19,981	23,465
Commitments and contingencies (Note 5)
Stockholders' equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized, No shares issued and outstanding as of March 31, 2015 and December 31, 2014
Common stock, $0.001 par value; 125,000,000 shares authorized, 22,551,745 and 22,523,529 shares issued and outstanding as of March 31, 2015 and December 31, 2014, respectively	23	23
Additional paid-in capital	157,688	156,373
Accumulated deficit	(122,632)	(115,022)
Total stockholders' equity	35,079	41,374
Total liabilities and stockholders' equity	$ 55,060	$ 64,839

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2015	Dec. 31, 2014
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance (in dollars)	$ 85	$ 84
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	22,551,745	22,523,529
Common stock, shares outstanding	22,551,745	22,523,529

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Revenue	$ 11,218	$ 7,476
Operating expenses:
Cost of revenue	4,566	3,607
Research and development	2,787	2,126
Selling and marketing	5,620	4,336
General and administrative	5,798	3,982
Total operating expenses	18,771	14,051
Loss from operations	(7,553)	(6,575)
Interest expense	(89)	(111)
Other income, net	32	12
Net loss	(7,610)	(6,674)
Comprehensive loss	$ (7,610)	$ (6,674)
Net loss per common share, basic and diluted (in dollars per share)	$ (0.34)	$ (0.32)
Shares use to compute net loss per common share, basic and diluted (in shares)	22,539,723	21,148,342

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Operating activities
Net loss	$ (7,610)	$ (6,674)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	352	264
Bad debt expense	22	28
Genzyme co-promotion fee amortization	(474)	(625)
Stock-based compensation	1,223	492
Amortization of debt discount and issuance costs	11	26
Interest on debt balloon payment	19	20
Changes in operating assets and liabilities:
Accounts receivable	466	(76)
Supplies inventory	(36)	(154)
Prepaid expenses and other current assets	38	463
Other assets	(29)	(3)
Accounts payable	(356)	2,045
Accrued liabilities and deferred rent	(2,493)	(2,563)
Net cash used in operating activities	(8,867)	(6,757)
Investing activities
Purchases of property and equipment	(511)	(124)
Change in restricted cash	70
Net cash used in investing activities	(441)	(124)
Financing activities
Commissions and issuance costs relating to the initial public offering		(129)
Proceeds from the exercise of common stock options	92	27
Net cash provided by (used in) financing activities	92	(102)
Net decrease in cash and cash equivalents	(9,216)	(6,983)
Cash and cash equivalents at beginning of period	35,014	71,220
Cash and cash equivalents at end of period	$ 25,798	$ 64,237

Organization and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2015

Organization and Summary of Significant Accounting Policies

Organization and Summary of Significant Accounting Policies

1. Organization and Summary of Significant Accounting Policies

Veracyte, Inc. (the “Company”) was incorporated in the state of Delaware in August 2006 as Calderome, Inc. Calderome operated as an incubator until early 2008. In March 2008, the Company changed its name to Veracyte, Inc. Veracyte is a diagnostics company pioneering the field of molecular cytology to improve patient outcomes and lower healthcare costs. The Company specifically targets diseases that often require invasive procedures for an accurate diagnosis—diseases where many healthy patients undergo costly interventions that ultimately prove unnecessary. The Company improves the accuracy of diagnosis at an earlier stage of patient care by deriving clinically actionable genomic information from cytology samples.

The Company’s first commercial solution, the Afirma® Thyroid FNA Analysis, includes as its centerpiece the Gene Expression Classifier (“GEC”). The GEC helps physicians reduce the number of unnecessary surgeries by employing a proprietary 142-gene signature to preoperatively determine whether thyroid nodules previously classified by cytopathology as indeterminate can be reclassified as benign. The comprehensive offering also includes cytopathology testing and the Afirma Malignancy Classifiers, launched in May 2014. The Company markets and sells Afirma through a co-promotion agreement with Genzyme Corporation, a subsidiary of Sanofi.

In September 2014, the Company acquired Allegro Diagnostics Corp. (“Allegro”) to accelerate its entry into pulmonology, the Company’s second planned clinical area. Allegro was focused on the development of genomic tests to improve the preoperative diagnosis of lung cancer. See Note 2. In April 2015, the Company entered the lung cancer diagnostics market with the Percepta™ Bronchial Genomic Classifier, a new genomic test to resolve ambiguity in lung cancer diagnosis. See Note 12.

In April 2015, the Company received approximately $37.3 million in net proceeds from the sale of its common stock in a private placement. See Note 12.

The Company’s operations are based in South San Francisco, California and Austin, Texas, and it operates in one segment in the United States.

Basis of Presentation

The accompanying interim period condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet as of March 31, 2015, the condensed consolidated statements of operations and comprehensive loss and the condensed consolidated statements of cash flows for the three months ended March 31, 2015 and 2014, are unaudited, but include all adjustments, consisting only of normal recurring adjustments, which the Company considers necessary for a fair presentation of its financial position, operating results and cash flows for the periods presented. The condensed consolidated balance sheet at December 31, 2014 has been derived from audited financial statements. The results for the three months ended March 31, 2015 are not necessarily indicative of the results expected for the full fiscal year or any other period.

The accompanying interim period condensed consolidated financial statements and related financial information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

Use of Estimates

The preparation of the unaudited interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant items subject to such estimates include: revenue recognition; contractual allowances; allowance for doubtful accounts; the useful lives of property and equipment; the recoverability of long-lived assets; stock options; income tax uncertainties, including a valuation allowance for deferred tax assets; and contingencies. The Company bases these estimates on historical and anticipated results, trends, and various other assumptions that the Company believes are reasonable under the circumstances, including assumptions as to future events. These estimates form the basis for making judgments about the carrying values of assets and liabilities and recorded revenue and expenses that are not readily apparent from other sources. Actual results could differ from these estimates and assumptions.

Concentrations of Credit Risk and Other Risks and Uncertainties

The Company’s cash and cash equivalents are deposited with one major financial institution in the United States, as required by the loan and security agreement discussed in Note 6. Deposits in this institution may exceed the amount of insurance provided on such deposits. The Company has not experienced any losses on its deposits of cash and cash equivalents.

Several of the components of the Company’s sample collection kit and test reagents are obtained from single-source suppliers. If these single-source suppliers fail to satisfy the Company’s requirements on a timely basis, it could suffer delays in being able to deliver its diagnostic solution, a possible loss of revenue, or incur higher costs, any of which could adversely affect its operating results.

The Company is also subject to credit risk from its accounts receivable related to its sales of Afirma. The Company generally does not perform evaluations of customers’ financial condition and generally does not require collateral.

Through March 31, 2015, all of the Company’s revenues have been derived from the sale of Afirma. The Company’s solution to date has been delivered primarily to physicians in the United States. The Company’s third-party payers in excess of 10% of revenue and their related revenue as a percentage of revenue were as follows:

	Three Months Ended March 31,
	2015		2014
Medicare	24	%	29	%
Aetna	9	%	10	%
Cigna	15	%	4	%
UnitedHealthcare	14	%	17	%
	62	%	60	%

As the number of payers reimbursing for Afirma increases, the percentage of revenue derived from Medicare and other significant third-party payers has changed and will continue to change as a percentage of revenue.

The Company’s significant third-party payers and their related accounts receivable balance at March 31, 2015 and December 31, 2014 as a percentage of total accounts receivable are as follows:

	March 31,		December 31,
	2015		2014

Medicare	40	%	64	%
Aetna	19	%	12	%
Cigna	11	%	0	%
UnitedHealthcare	23	%	14	%

No other third-party payer represented more than 10% of the Company’s accounts receivable balances for these periods.

Cash Equivalents

Cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less from the date of purchase. Cash equivalents consist of amounts invested in a money market account primarily consisting of U.S. Treasury reserves.

Restricted Cash

The Company had deposits of $118,000 as of March 31, 2015 and December 31, 2014, restricted from withdrawal and held by a bank in the form of collateral for irrevocable standby letters of credit totaling $118,000 held as security for the lease of the Company’s headquarters and laboratory facilities in South San Francisco that expires March 31, 2016. This restricted cash is included in current assets as of March 31, 2015 and in long-term assets as of December 31, 2014 on the Company’s condensed consolidated balance sheets.

The Company reserved $70,000 in cash as of December 31, 2014 to cover liabilities associated with the acquisition of Allegro. This amount was paid in March 2015. This restricted cash was included in current assets on the Company’s condensed consolidated balance sheet at December 31, 2014.

Allowance for Doubtful Accounts

The Company estimates an allowance for doubtful accounts against its individual accounts receivable based on estimates of expected reimbursement consistent with historical payment experience in relation to the amounts billed. Bad debt expense is included in general and administrative expense on the Company’s statements of operations and comprehensive loss. Accounts receivable are written off against the allowance when there is substantive evidence that the account will not be paid.

The balance of allowance for doubtful accounts as of March 31, 2015 and December 31, 2014 was $85,000 and $84,000, respectively. Write-offs for doubtful accounts of $21,000 were recorded against the allowance during the three months ended March 31, 2015. There were no write-offs for doubtful accounts during the three months ended March 31, 2014. Bad debt expense was $22,000 and $28,000 for the three months ended March 31, 2015 and 2014, respectively.

Supplies Inventory

Supplies inventory consists of test reagents and other consumables used in the sample collection kits and in cytopathology and GEC test processing and are valued at the lower of cost or market value. Cost is determined using actual costs on a first-in, first-out basis.

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally between three and five years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life of the asset or the term of the lease. Maintenance and repairs are charged to expense as incurred, and improvements and betterments are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the balance sheet and any resulting gain or loss is reflected in the statements of operations and comprehensive loss in the period realized.

Internal-use Software

The Company capitalizes costs incurred in the application development stage to design and implement the software used in the tracking and reporting of laboratory activity. Costs incurred in the development of application software are capitalized and amortized over an estimated useful life of three years on a straight line basis. The total cost, accumulated depreciation and net book value was $1,008,000, $385,000 and $623,000, respectively, as of March 31, 2015, and was $927,000, $330,000 and $597,000, respectively, as of December 31, 2014, and are included in property and equipment in the Company’s condensed consolidated balance sheets. During the three months ended March 31, 2015 and 2014, the Company capitalized $81,000 and $25,000, respectively, of software development costs. Amortization expense totaled $55,000 and $32,000 in the three months ended March 31, 2015 and 2014, respectively.

Business Combination

The Company accounts for acquisitions using the acquisition method of accounting which requires the recognition of tangible and identifiable intangible assets acquired and liabilities assumed at their estimated fair values as of the business combination date. The Company allocates any excess purchase price over the estimated fair value assigned to the net tangible and identifiable intangible assets acquired and liabilities assumed to goodwill. Transaction costs are expensed as incurred in general and administrative expenses. Results of operations and cash flows of acquired companies are included in the Company’s operating results from the date of acquisition.

Goodwill

Goodwill, derived from the Company’s acquisition of Allegro, is reviewed for impairment annually or more frequently if events or circumstances indicate that it may be impaired. The Company’s goodwill evaluation is based on both qualitative and quantitative assessments regarding the fair value of goodwill relative to its carrying value. The Company has determined that it operates in a single segment and has a single reporting unit associated with the development and commercialization of diagnostic products. In the event the Company determines that it is more likely than not the carrying value of the reporting unit is higher than its fair value, quantitative testing is performed comparing recorded values to estimated fair values. If impairment is present, the impairment loss is measured as the excess of the recorded goodwill over its implied fair value. The Company performs its annual evaluation of goodwill during the fourth quarter of each fiscal year. There was no impairment for the three months ended March 31, 2015.

Intangible Assets

The Company’s intangible assets are comprised of acquired in-process research and development (“IPR&D”). The fair value of IPR&D acquired through a business combination is capitalized as an indefinite-lived intangible asset until the completion or abandonment of the related research and development activities. When research and development is complete, the associated assets are amortized on a straight-line basis over their estimated useful lives. IPR&D is tested for impairment annually or more frequently if events or circumstances indicate that the fair value may be below the carrying value of the asset. There was no impairment for the three months ended March 31, 2015.

Impairment of Long-lived Assets

The Company reviews long-lived and indefinite-lived assets other than goodwill for impairment annually or more frequently if events or circumstances indicate that the carrying amount of the assets may not be recoverable. The Company recognizes an impairment loss when the total of estimated future undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. Impairment, if any, would be assessed using discounted cash flows or other appropriate measures of fair value. There were no impairments for the three months ended March 31, 2015 and 2014.

Bonus Accruals

The Company accrues for liabilities under discretionary employee and executive bonus plans. These estimated compensation liabilities are based on progress against corporate objectives approved by the Board of Directors, compensation levels of eligible individuals, and target bonus percentage levels. The Board of Directors and the Compensation Committee of the Board of Directors review and evaluate the performance against these objectives and ultimately determine what discretionary payments are made. The Company accrued $0.7 million and $1.1 million as of March 31, 2015 and December 31, 2014, respectively, for liabilities associated with these employee and executive bonus plans which are included in accrued liabilities in the Company’s condensed consolidated balance sheets.

Fair Value of Financial Instruments

The carrying amounts of certain financial instruments including cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities approximate fair value due to their relatively short maturities.

Revenue Recognition

The Company’s revenue is generated from the provision of diagnostic services using the Afirma solution. The Company’s service is completed upon the delivery of test results to the prescribing physician which triggers the billing for the service. The Company recognizes revenue related to billings for Medicare and commercial payers on an accrual basis, net of contractual adjustments, when a reasonable estimate of reimbursement can be made. These contractual adjustments represent the difference between the list price (the billing rate) and the reimbursement rate for each payer. Upon ultimate collection, the amount received from Medicare and commercial payers where reimbursement was estimated is compared to previous estimates and the contractual allowance is adjusted accordingly. Until a contract has been negotiated with a commercial payer or governmental program, the Afirma solution may or may not be covered by these entities’ existing reimbursement policies. In addition, patients do not enter into direct agreements with the Company that commit them to pay any portion of the cost of the tests in the event that their insurance declines to reimburse the Company. In the absence of an agreement with the patient or other clearly enforceable legal right to demand payment from the patient, the related revenue is only recognized upon the earlier of payment notification, if applicable, or cash receipt.

For all services performed, the Company considers whether or not the following revenue recognition criteria are met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; and a reasonable estimate of reimbursement can be made.

Persuasive evidence of an arrangement exists and delivery is deemed to have occurred upon delivery of a patient report to the prescribing physician. The assessment of whether a reasonable estimate of reimbursement can be made requires significant judgment by management. Where management’s judgment indicates a reasonable estimate of reimbursement can be made, revenue is recognized upon delivery of the patient report. Some patients have out-of-pocket costs for amounts not covered by their insurance carrier, and the Company may bill the patient directly for these amounts in the form of co-payments and co-insurance in accordance with their insurance carrier and health plans. Some payers may not cover the Company’s GEC as ordered by the prescribing physician under their reimbursement policies. The Company pursues reimbursement from such patients on a case-by-case basis. In the absence of contracted reimbursement coverage or the ability to reasonably estimate reimbursement, the Company recognizes revenue upon receipt of third-party payer notification of payment or when cash is received.

Revenue recognized when cash is received was $5.8 million and $5.1 million for the three months ended March 31, 2015 and 2014, respectively. Revenue recognized on an accrual basis was $5.4 million and $2.4 million for the three months ended March 31, 2015 and 2014, respectively.

Cost of Revenue

Cost of revenue is expensed as incurred and includes material and service costs, cytopathology testing services performed by a third-party pathology group, stock-based compensation expense, direct labor costs, equipment and infrastructure expenses associated with testing samples, shipping charges to transport samples, and allocated overhead including rent, information technology, equipment depreciation and utilities.

Research and Development

Research and development costs are charged to operations as incurred. Research and development costs include payroll and personnel-related expenses, stock-based compensation expense, prototype materials, laboratory supplies, consulting costs, costs associated with setting up and conducting clinical studies at domestic and international sites, and allocated overhead including rent, information technology, equipment depreciation and utilities.

Income Taxes

The Company accounts for income taxes under the liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized.

The Company assesses all material positions taken in any income tax return, including all significant uncertain positions, in all tax years that are still subject to assessment or challenge by relevant taxing authorities. The Company’s assessment of an uncertain tax position begins with the initial determination of the position’s sustainability and is measured at the largest amount of benefit that is more-likely-than-not of being realized upon ultimate settlement. As of each balance sheet date, unresolved uncertain tax positions must be reassessed, and the Company will determine whether (i) the factors underlying the sustainability assertion have changed and (ii) the amount of the recognized tax benefit is still appropriate. The recognition and measurement of tax benefits requires significant judgment. Judgments concerning the recognition and measurement of a tax benefit may change as new information becomes available.

Stock-based Compensation

Stock-based compensation expense for equity instruments issued to employees is measured based on the grant-date fair value of the awards. The fair value of each employee stock option is estimated on the date of grant using the Black-Scholes option-pricing model. The Company recognizes compensation costs on a straight-line basis for all employee stock-based compensation awards that are expected to vest over the requisite service period of the awards, which is generally the awards’ vesting period. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

Equity awards issued to non-employees are valued using the Black-Scholes option-pricing model and are subject to re-measurement as the underlying equity awards vest.

Net Loss per Common Share

Basic net loss per common share is calculated by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration of common stock equivalents. Diluted net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted-average number of common share equivalents outstanding for the period determined using the treasury stock method. Potentially dilutive securities consisting of options to purchase common stock of 4,270,198 and 3,166,419 for the three months ended March 31, 2015 and 2014, respectively, are considered to be common stock equivalents and were excluded from the calculation of diluted net loss per common share because their effect would be anti-dilutive for all periods presented.

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard becomes effective for the Company in the first quarter of fiscal 2017. In April 2015, the FASB voted to issue a proposal which would defer the adoption of this standard update until the first quarter of fiscal 2018. The Company has not yet selected a transition method and is currently evaluating the potential effect of the updated standard on its consolidated financial statements.

Business Combination

3 Months Ended

Mar. 31, 2015

Business Combination

Business Combination

2. Business Combination

On September 16, 2014, the Company acquired Allegro via a merger with Full Moon Acquisition, Inc., a wholly-owned subsidiary of the Company. Allegro was a privately-held company based in Maynard, Massachusetts, focused on the development of genomic tests to improve the preoperative diagnosis of lung cancer. Allegro merged with Full Moon (the “Merger”), with Allegro surviving the Merger as a wholly-owned subsidiary of the Company. At the effective time of the Merger, each share of the common stock of Full Moon issued and outstanding immediately prior to the effective time of the Merger was automatically converted into one share of common stock of Allegro and represented the only outstanding common stock of Allegro at the effective time of the Merger; all previously issued and outstanding shares of common stock of Allegro were canceled. The Series A preferred stock of Allegro issued and outstanding immediately prior to the effective time of the Merger was canceled and automatically converted into the right to receive a total of 964,377 shares of the Company’s common stock and $2.7 million in cash. Outstanding indebtedness of Allegro totaling $4.3 million was settled in cash by the Company on the effective date of the Merger. All outstanding stock options under Allegro’s equity incentive plan were canceled.

The acquisition of Allegro accelerated the Company’s molecular diagnostics business into the pulmonology diagnostics market. Allegro’s lung cancer test, called Percepta, is designed to help physicians determine which patients with lung nodules who have had a non-diagnostic bronchoscopy result are at low risk for cancer and can thus be safely monitored with CT scans rather than undergoing invasive procedures. The Company launched Percepta in April 2015.

The Merger was accounted for using the acquisition method of accounting with the Company treated as the accounting acquirer. The purchase price was allocated based on the estimated fair value of the assets acquired and liabilities assumed at the date of the acquisition.

The Company incurred approximately $0.5 million in acquisition-related costs related to the Merger, which primarily consisted of legal, accounting and valuation-related expenses. In addition, the Company incurred $1.2 million related to transaction bonuses and severance payments to former Allegro employees associated with the Merger. These expenses were recorded in general and administrative expense in the condensed consolidated statements of operations and comprehensive loss.

The acquisition consideration was comprised of (in thousands):

Stock	$	10,078
Cash	2,725
Payment of outstanding indebtedness	4,290
Total acquisition consideration	$	17,093

The stock consideration of $10.1 million was determined based on the closing price of the Company’s common stock on September 16, 2014 ($10.45 per share).

The fair value of the assets acquired and liabilities assumed at the closing date of the Merger are summarized below (in thousands):

Cash and cash equivalents	$	29
Other assets, net	7
In-process research and development (“IPR&D”)	16,000
Goodwill	1,057
Total acquisition consideration	$	17,093

The fair value of IPR&D was determined using the multi-period excess earnings method of the income approach, which estimates the economic benefits of the IPR&D over multiple time periods by identifying the cash flows associated with the use of the asset, based on forecasts prepared by management, and deducting a periodic charge reflecting a fair return for the use of contributory assets. The forecasted cash flows were discounted based on a discount rate of 18.5%. The discount rate represents the Company’s weighted average return on assets and was benchmarked against the internal rate of return and cost of capital of guideline publicly traded companies. The fair value of the IPR&D was capitalized as of the closing date of the Merger and was accounted for as an indefinite-lived intangible asset prior to the beginning of amortization. Amortization of the IPR&D began in April 2015 when research and development activities were deemed to be completed and is recorded on a straight-line basis. The amortization period of the IPR&D is over its estimated useful life of 15 years after taking into consideration expected use of the asset, legal or regulatory provisions that may limit or extend the life of the asset, as well as the effects of obsolescence and other economic factors. See Note 12.

Goodwill, which represents the purchase price in excess of the fair value of net assets acquired, is not expected to be deductible for income tax purposes. This goodwill is reflective of the value derived from the acceleration of the Company’s entry into the pulmonology market.

The following pro forma financial information is based on the historical financial statements of the Company and presents the Company’s results as if the Merger had occurred as of January 1, 2013 (in thousands):

	Three Months Ended
	March 31,
	2014
Revenue	$	7,476
Net loss	$	(7,211	)

The pro forma results present the combined historical results of operations with adjustments to reflect one-time charges representing the elimination of interest expense related to Allegro indebtedness of $0.1 million.

The pro forma information presented does not purport to present what the actual results would have been had the Merger actually occurred on January 1, 2013, nor is the information intended to project results for any future period.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
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-Paragraph 1
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+ Details

Accrued Liabilities

3 Months Ended

Mar. 31, 2015

Accrued Liabilities.

Accrued Liabilities

3. Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):

	March 31,		December 31,
	2015		2014
Accrued compensation expenses	$	1,843	$	2,673
Accrued Genzyme co-promotion fees	1,684		3,309
Accrued other	1,869		1,869
Total accrued liabilities	$	5,396	$	7,851

Fair Value Measurements

3 Months Ended

Mar. 31, 2015

Fair Value Measurements

Fair Value Measurements

4. Fair Value Measurements

The Company records its financial assets and liabilities at fair value. The carrying amounts of certain financial instruments of the Company, including cash and cash equivalents, prepaid expenses and other current assets, accounts payable and accrued liabilities, approximate fair value due to their relatively short maturities. The carrying value of debt approximates its fair value because the interest rate approximates market rates that the Company could obtain for debt with similar terms. The accounting guidance for fair value provides a framework for measuring fair value, clarifies the definition of fair value, and expands disclosures regarding fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows:

Level I: Inputs which include quoted prices in active markets for identical assets and liabilities.

Level II: Inputs other than Level I that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level III: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The fair value of the Company’s financial assets, which consist only of money market funds, was $23.9 million and $33.2 million as of March 31, 2015 and December 31, 2014, respectively, and are Level I assets as described above.

- Definition

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

+ References + Details

Commitments and Contingencies

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies

Commitments and Contingencies

5. Commitments and Contingencies

Operating Leases

The Company leases its headquarters and laboratory facilities in South San Francisco under a non-cancelable lease agreement that expires on March 31, 2016. On April 29, 2015, the Company signed a non-cancelable lease agreement for approximately 59,000 square feet to serve as its South San Francisco headquarters and laboratory facilities. The lease begins in June 2015 and ends in March 2026 and contains extension of lease term and expansion options. See Note 12.

The Company also leases laboratory space in Austin, Texas. The lease expires on July 31, 2018. The Company provided a security deposit of $75,000, which is included in other assets in the Company’s condensed consolidated balance sheets as of March 31, 2015 and December 31, 2014.

Future minimum lease payments under non-cancelable operating leases as of March 31, 2015, including the lease signed in April 2015, are as follows (in thousands):

Year Ending December 31,	Amounts
April through December 31, 2015	$	750
2016	1,822
2017	2,142
2018	2,102
2019	2,026
Thereafter	14,038
Total minimum lease payments	$	22,880

The Company recognizes rent expense on a straight-line basis over the non-cancelable lease period. Facilities rent expense was $213,000 for each of the three months ended March 31, 2015 and 2014.

Supplies Purchase Commitments

The Company had a non-cancelable purchase commitment with two suppliers to purchase a minimum quantity of supplies for approximately $1.2 million at March 31, 2015, all of which is expected to be paid in 2015.

Debt Obligations

See Note 6.

Contingencies

From time to time, the Company may be involved in legal proceedings arising in the ordinary course of business. The Company believes there is no litigation pending that could have, individually or in the aggregate, a material adverse effect on the financial position, results of operations or cash flows.

Debt

3 Months Ended

Mar. 31, 2015

Debt

Debt

6. Debt

In June 2013, the Company entered into a loan and security agreement (“Original Loan”) with a financial institution. The Original Loan provided for term loans of up to $10.0 million in aggregate. The Company drew down $5.0 million in funds under the agreement in June 2013, and did not draw the remaining $5.0 million on or before the expiration date of March 31, 2014. The Company was required to repay the outstanding principal in 30 equal installments beginning 18 months after the date of the borrowing, and the loan was due in full in June 2017. The Original Loan had an interest rate of 6.06% per annum, carried prepayment penalties of 2.25% and 1.50% for prepayment within one and two years, respectively, and 0.75% thereafter.

In December 2014, the Company amended certain terms and conditions of the Original Loan (“Amended Loan”). The Amended Loan provides for term loans of up to $15.0 million in aggregate, in three tranches of $5.0 million each. The Company borrowed $5.0 million under the first tranche in December 2014 and used the funds for repayment of the $5.0 million in principal outstanding under the Original Loan, in a cashless transaction. In addition, the Company paid the accrued but unpaid interest of $14,000 due on the Original Loan and the related end-of-term payment of $110,000. The Amended Loan waived the prepayment premium of $75,000 under the Original Loan and reduced the end- of-term payment of $225,000 under the Original Loan to $110,000. The second $5.0 million tranche under the Amended Loan is available through December 31, 2015, and the Company may borrow the third $5.0 million tranche any time through June 30, 2016 after achieving the third tranche revenue milestone as defined in the Amended Loan.

The carrying value of the debt approximates its fair value because the interest rate approximates market rates that the Company could obtain for debt with similar terms. Under the Amended Loan, the Company is required to repay the outstanding principal in 24 equal installments beginning 24 months after the date of the borrowing, and the loan is due in full in December 2018. The first tranche of the Amended Loan bears interest at a rate of 5.00% per annum. The Amended Loan carries prepayment penalties of 2.00% and 1.00% for prepayment within one and two years, respectively, and no prepayment penalty thereafter. In connection with the Amended Loan, the Company paid approximately $45,000 in third-party fees.

The Amended Loan results in a debt modification under ASC 470-50, Modifications and Extinguishments, as the change in present value of the remaining cash flows associated with the Original Loan and Amended Loan are not substantial.

As of March 31, 2015 and December 31, 2014, the net debt obligation was as follows (in thousands):

	March 31,			December 31,
	2015			2014
Debt and unpaid accrued end-of-term payment	$	5,023		$	5,003
Unamortized note discount	(74		)	(80		)
Net debt obligation	$	4,949		$	4,923

Future principal payments under the Amended Loan are as follows (in thousands):

Year Ending December 31,	Amounts
April through December 31, 2015	$	—
2016	—
2017	2,437
2018	2,563
Total	$	5,000

The obligation includes an end-of-term payment of $237,500, representing 4.75% of the total outstanding principal balance, which accretes over the life of the loan as interest expense. As a result of the debt discount and the end-of-term payment, the effective interest rate for the loan differs from the contractual rate.

Interest expense on the debt was as follows (in thousands):

	Three Months Ended March 31,
	2015		2014
Nominal interest	$	63	$	76
Amortization of debt discount	7		15
End-of-term payment interest	19		20
Total	$	89	$	111

Loans drawn under the Original Loan and the Amended Loan were used for working capital and general corporate purposes. The Company’s obligations under the Amended Loan are secured by a security interest in substantially all of its assets, excluding its intellectual property and certain other assets. The Amended Loan contains customary conditions related to borrowing, events of default, and covenants, including covenants limiting the Company’s ability to dispose of assets, undergo a change in control, merge with or acquire other entities, incur debt, incur liens, pay dividends or other distributions to holders of its capital stock, repurchase stock and make investments, in each case subject to certain exceptions. The Amended Loan also allows the lender to call the debt in the event there is a material adverse change in the Company’s business or financial condition. The Company is required to be in compliance with a minimum liquidity or minimum revenue covenant. As of March 31, 2015, the Company was in compliance with the financial covenants.

Stockholders' Equity

3 Months Ended

Mar. 31, 2015

Stockholders' Equity

Stockholders' Equity

7. Stockholders’ Equity

Common Stock

The Company’s Restated Certificate of Incorporation authorizes the Company to issue 125,000,000 shares of common stock with a par value of $0.001 per share. The holder of each share of common stock shall have one vote for each share of stock. The common stockholders are also entitled to receive dividends whenever funds and assets are legally available and when declared by the Board of Directors, subject to the prior rights of holders of all series of convertible preferred stock outstanding. No dividends have been declared as of March 31, 2015.

As of March 31, 2015 and December 31, 2014, the Company had reserved shares of common stock for issuance as follows:

	March 31,	December 31,
	2015	2014
Options issued and outstanding	4,270,198	3,249,469
Options available for grant under stock option plans	1,193,248	1,341,252
Total	5,463,446	4,590,721

In April 2015, the Company issued and sold 4,907,975 shares of its common stock in a private placement. See Note 12.

Preferred Stock

The Company’s Restated Certificate of Incorporation authorizes the Company to issue 5,000,000 shares of preferred stock with a par value of $0.001 per share. No shares were issued and outstanding at March 31, 2015 or December 31, 2014.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
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Reference 17: http://www.xbrl.org/2003/role/presentationRef
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Reference 18: http://www.xbrl.org/2003/role/presentationRef
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Reference 19: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Stock Incentive Plans

3 Months Ended

Mar. 31, 2015

Stock Incentive Plans

Stock Incentive Plans

8. Stock Incentive Plans

The following table summarizes activity under the Company’s stock option plans (aggregate intrinsic value in thousands):

	Shares Available for Grant		Stock Options Outstanding		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Balance - December 31, 2014	1,341,252		3,249,469		$	7.59	7.88	$	12,400
Additional options authorized	900,941		—
Granted	(1,082,600	)	1,082,600		8.81
Canceled	33,655		(33,655	)	9.40
Exercised	—		(28,216	)	3.27
Balance - March 31, 2015	1,193,248		4,270,198		$	7.91	8.24	$	7,550
Options vested and exercisable - March 31, 2015			1,639,267		$	4.60	6.71	$	6,212
Options vested and expected to vest - March 31, 2015			4,036,327		$	7.75	8.29	$	7,519

The aggregate intrinsic value was calculated as the difference between the exercise price of the options to purchase common stock and the fair market value of the Company’s common stock, which was $7.28 per share as of March 31, 2015.

The weighted average fair value of options to purchase common stock granted was $5.37 and $10.27 for the three months ended March 31, 2015 and 2014, respectively.

The weighted-average fair value of stock options exercised was $2.50 and $2.53 for the three months ended March 31, 2015 and 2014, respectively. The intrinsic value of stock options exercised was $0.1 million for each of the three months ended March 31, 2015 and 2014.

Stock-based Compensation

The following table summarizes stock-based compensation expense related to stock options for the three months ended March 31, 2015 and 2014, and are included in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands):

	Three Months Ended March 31,
	2015		2014
Cost of revenue	$	17	$	9
Research and development	253		107
Selling and marketing	269		93
General and administrative	684		283
Total	$	1,223	$	492

As of March 31, 2015, the Company had $13.4 million of unrecognized compensation expense related to unvested stock options, which is expected to be recognized over an estimated weighted-average period of 3.2 years.

The estimated grant date fair value of employee stock options was calculated using the Black-Scholes option-pricing model, based on the following assumptions:

	Three Months Ended March 31,
	2015	2014
Weighted-average volatility	66.06 - 68.82%	77.17 - 78.54%
Weighted-average expected term (years)	6.08	6.08
Risk-free interest rate	1.55 - 1.79%	1.83 - 1.99%
Expected dividend yield	—	—

There were no stock options granted to non-employees during the three months ended March 31, 2015. The estimated grant-date fair value of stock options granted to non-employees during the three months ended March 31, 2014 was calculated using the Black-Scholes option-pricing model, based on the following assumptions: weighted-average volatility from 76.70% to 76.87%, weighted-average expected term from 8.68 years to 9.51 years, risk-free interest rate from 2.54% to 2.66%, and expected dividend yield of 0%.

Genzyme Co-promotion Agreement	3 Months Ended
Genzyme Co-promotion Agreement	Mar. 31, 2015
Genzyme Co-promotion Agreement
Genzyme Co-promotion Agreement	9. Genzyme Co-promotion Agreement In January 2012, the Company and Genzyme Corporation (“Genzyme”) executed a co-promotion agreement for the co-exclusive rights and license to promote and market the Company’s Afirma thyroid diagnostic solution in the United States and in 40 named countries. In exchange, the Company received a $10.0 million upfront co-promotion fee from Genzyme in February 2012. Under the terms of the agreement, Genzyme will receive a percentage of U.S. cash receipts that the Company has received related to Afirma as co-promotion fees. The percentage was 50% in 2012, 40% from January 2013 through February 2014, and 32% beginning in February 2014. Genzyme’s obligation to also spend up to $500,000 for qualifying clinical development activities in countries that require additional testing for approval expired in July 2014. In November 2014, the Company signed an Amended and Restated U.S. Co-promotion Agreement (“Amended Agreement”) with Genzyme. Under the Amended Agreement, the co-promotion fees Genzyme will receive as a percentage of U.S. cash receipts were reduced from 32% to 15% beginning January 1, 2015. Through August 11, 2014, the Company amortized the $10.0 million upfront co-promotion fee over a four-year period, which was management’s best estimate of the life of the agreement, in part because after that period either party could have terminated the agreement without penalty. Effective August 12, 2014, the Company extended the amortization period from January 2016 to June 2016, the modified earliest period either party can terminate the agreement without penalty. The Company accounted for the change in accounting estimate prospectively. Either party may terminate the agreement with six months prior notice, however, under the Amended Agreement, neither party can terminate the agreement for convenience prior to June 30, 2016. The agreement with Genzyme expires in 2027. On February 13, 2015, the Company entered into an Ex-U.S. Co-promotion Agreement with Genzyme for the promotion of the Afirma GEC test with exclusivity in five countries outside the United States initially and in other countries agreed to from time to time. The term of the agreement is January 1, 2015 and continues until December 31, 2019, with extension of the agreement possible upon agreement of the parties. Country-specific terms have been established under this agreement for Brazil and Singapore and a right of first negotiation has been established for Canada, the Netherlands and Italy. The Company will pay Genzyme 25% of net revenue from the sale of the Afirma GEC test in Brazil and Singapore over a five-year period commencing January 1, 2015. Beginning in the fourth year of the agreement, if the Company terminates the agreement for convenience, the Company may be required to pay a termination fee contingent on the number of GEC billable results generated. The Company incurred $1.7 million and $2.8 million in co-promotion expense in the three months ended March 31, 2015 and 2014, respectively, which is included in selling and marketing expenses in the condensed consolidated statements of operations and comprehensive loss. The Company’s outstanding obligation to Genzyme totaled $4.4 million and $6.0 million at March 31, 2015 and December 31, 2014, respectively. Of the $4.4 million obligation at March 31, 2015, $2.7 million is included in accounts payable and $1.7 million is included in accrued liabilities in the Company’s condensed consolidated balance sheets. Of the $6.0 million obligation at December 31, 2014, $2.7 million is included in accounts payable and $3.3 million is included in accrued liabilities in the Company’s condensed consolidated balance sheets. The Company amortized $0.5 million and $0.6 million of the $10.0 million up-front co-promotion fee in the three months ended March 31, 2015 and 2014, respectively, which is reflected as a reduction to selling and marketing expenses in the condensed consolidated statements of operations and comprehensive loss.

Thyroid Cytopathology Partners	3 Months Ended
Thyroid Cytopathology Partners	Mar. 31, 2015
Thyroid Cytopathology Partners.
Thyroid Cytopathology Partners	10. Thyroid Cytopathology Partners In 2010, the Company entered into an arrangement with Pathology Resource Consultants, P.A. (“PRC”) to set up and manage a specialized pathology practice to provide testing services to the Company. There is no direct monetary compensation from the Company to PRC as a result of this arrangement. The Company’s service agreement is with the specialized pathology practice, Thyroid Cytopathology Partners (“TCP”), and is effective through December 31, 2015, and thereafter automatically renews every year unless either party provides notice of intent not to renew at least 12 months prior to the end of the then-current term. Under the service agreement, the Company pays TCP based on a fixed price per test schedule, which is reviewed periodically for changes in market pricing. Subsequent to December 2012, an amendment to the service agreement allows TCP to use a portion of the Company’s facility in Austin, Texas. The Company does not have an ownership interest in or provide any form of financial or other support to TCP. The Company has concluded that TCP represents a variable interest entity and that the Company is not the primary beneficiary as it does not have the ability to direct the activities that most significantly impact TCP’s economic performance. Therefore, the Company does not consolidate TCP. All amounts paid to TCP under the service agreement are expensed as incurred and included in cost of revenue in the condensed consolidated statements of operations and comprehensive loss. The Company incurred $1.1 million and $0.9 million in the three months ended March 31, 2015 and 2014, respectively, in cytopathology testing and evaluation services expenses with TCP. The Company’s outstanding obligations to TCP for cytopathology testing services were $0.7 million and $1.1 million as of March 31, 2015 and December 31, 2014, respectively, and are included in accounts payable in the Company’s condensed consolidated balance sheets. TCP reimburses the Company for a proportionate share of the Company’s rent and related operating expense costs for the leased facility. TCP’s portion of rent and related operating expense costs for the shared space at the Austin, Texas facility was $23,000 and $20,000 for the three months ended March 31, 2015 and 2014, respectively, and is included in other income, net in the Company’s condensed statements of operations and comprehensive loss.

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2015
Income Taxes
Income Taxes	11. Income Taxes The Company did not record a provision or benefit for income taxes during the three months ended March 31, 2015 and 2014. The Company continues to maintain a full valuation allowance against its net deferred tax assets. As of March 31, 2015, the Company had unrecognized tax benefits of $1.6 million, none of which would currently affect the Company’s effective tax rate if recognized due to the Company’s net deferred tax assets being fully offset by a valuation allowance. The Company does not anticipate that the amount of unrecognized tax benefits relating to tax positions existing at March 31, 2015 will significantly increase or decrease within the next 12 months. There was no interest expense or penalties related to unrecognized tax benefits recorded through March 31, 2015. A number of years may elapse before an uncertain tax position is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, the Company believes that its reserves for income taxes reflect the most likely outcome. The Company adjusts these reserves, as well as the related interest, in light of changing facts and circumstances. Settlement of any particular position could require the use of cash.

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2015
Subsequent Events.
Subsequent Events	12. Subsequent Events Launch of Percepta In April 2015, the Company entered the lung cancer diagnostics market with the launch of the Percepta Bronchial Genomic Classifier. Amortization of the acquired in-process research and development associated with the Percepta test began in April 2015 when research and development activities were deemed to be completed. The amortization period of the IPR&D is over its estimated useful life of 15 years and is recorded on a straight-line basis. Sale of Common Stock Under Securities Purchase Agreement On April 28, 2015, the Company completed a private placement of 4,907,975 shares of its common stock to certain accredited investors (the “Investors”) at a purchase price of $8.15 per share. The sale of the shares was made pursuant to the terms of a Securities Purchase Agreement dated as of April 22, 2015. Gross proceeds to the Company were $40.0 million and the Company is expected to receive approximately $37.3 million in net proceeds, after deducting the placement agent fees and other expenses payable by the Company of approximately $2.7 million. Under the Securities Purchase Agreement, the Company has agreed to use the net proceeds from the private placement for research and development, for product commercialization, and for working capital and general corporate purposes. In connection with the sale of the common stock in the private placement, the Company entered into a Registration Rights Agreement with the Investors, dated as of April 22, 2015, pursuant to which the Company has agreed to file a registration statement with the SEC covering the resale of the common stock sold in the private placement. The Company has agreed to file the registration statement within 30 days of the closing of the private placement. The Registration Rights Agreement includes customary indemnification rights in connection with the registration statement. Facilities Lease On April 29, 2015, the Company signed a non-cancelable lease agreement for approximately 59,000 square feet to serve as its South San Francisco headquarters and laboratory facilities. The lease begins in June 2015 and ends in March 2026 and contains extension of lease term and expansion options. Upon signing the lease, the Company provided $603,000 in the form of a letter of credit held as security for the lease.

Organization and Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2015

Organization and Summary of Significant Accounting Policies

Basis of Presentation

Use of Estimates

Concentrations of Credit Risk and Other Risks and Uncertainties

	Three Months Ended March 31,
	2015		2014
Medicare	24	%	29	%
Aetna	9	%	10	%
Cigna	15	%	4	%
UnitedHealthcare	14	%	17	%
	62	%	60	%

The Company’s significant third-party payers and their related accounts receivable balance at March 31, 2015 and December 31, 2014 as a percentage of total accounts receivable are as follows:

	March 31,		December 31,
	2015		2014

Medicare	40	%	64	%
Aetna	19	%	12	%
Cigna	11	%	0	%
UnitedHealthcare	23	%	14	%

No other third-party payer represented more than 10% of the Company’s accounts receivable balances for these periods.

Cash Equivalents

Restricted Cash

Allowance for Doubtful Accounts

Supplies Inventory

Property and Equipment

Internal-use Software

Business Combination

Goodwill

Intangible Assets

Impairment of Long-lived Assets

Bonus Accruals

Fair Value of Financial Instruments

Revenue Recognition

Cost of Revenue

Research and Development

Income Taxes

Stock-based Compensation

Equity awards issued to non-employees are valued using the Black-Scholes option-pricing model and are subject to re-measurement as the underlying equity awards vest.

Net Loss per Common Share

Recent Accounting Pronouncements

Organization and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2015

Revenue concentration risk | Revenue

Organization and Summary of Significant Accounting Policies

Schedule of the Company's third-party payers as a percentage of total

	Three Months Ended March 31,
	2015		2014
Medicare	24	%	29	%
Aetna	9	%	10	%
Cigna	15	%	4	%
UnitedHealthcare	14	%	17	%
	62	%	60	%

Gross receivables concentration risk | Accounts receivable

Organization and Summary of Significant Accounting Policies

Schedule of the Company's third-party payers as a percentage of total

	March 31,		December 31,
	2015		2014

Medicare	40	%	64	%
Aetna	19	%	12	%
Cigna	11	%	0	%
UnitedHealthcare	23	%	14	%

Business Combination (Tables)

3 Months Ended

Mar. 31, 2015

Business Combination

Schedule of pro forma financial information as if the Merger had occurred as of January 1, 2013

	Three Months Ended
	March 31,
	2014
Revenue	$	7,476
Net loss	$	(7,211	)

Allegro

Business Combination

Schedule of acquisition consideration

The acquisition consideration was comprised of (in thousands):

Stock	$	10,078
Cash	2,725
Payment of outstanding indebtedness	4,290
Total acquisition consideration	$	17,093

Schedule of fair value of assets acquired and liabilities assumed

The fair value of the assets acquired and liabilities assumed at the closing date of the Merger are summarized below (in thousands):

Cash and cash equivalents	$	29
Other assets, net	7
In-process research and development (“IPR&D”)	16,000
Goodwill	1,057
Total acquisition consideration	$	17,093

Accrued Liabilities (Tables)

3 Months Ended

Mar. 31, 2015

Accrued Liabilities.

Schedule of accrued liabilities

Accrued liabilities consisted of the following (in thousands):

	March 31,		December 31,
	2015		2014
Accrued compensation expenses	$	1,843	$	2,673
Accrued Genzyme co-promotion fees	1,684		3,309
Accrued other	1,869		1,869
Total accrued liabilities	$	5,396	$	7,851

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies

Schedule of future minimum lease payments under non-cancelable operating leases

Future minimum lease payments under non-cancelable operating leases as of March 31, 2015, including the lease signed in April 2015, are as follows (in thousands):

Year Ending December 31,	Amounts
April through December 31, 2015	$	750
2016	1,822
2017	2,142
2018	2,102
2019	2,026
Thereafter	14,038
Total minimum lease payments	$	22,880

Debt (Tables)

3 Months Ended

Mar. 31, 2015

Debt

Schedule of net debt obligation

As of March 31, 2015 and December 31, 2014, the net debt obligation was as follows (in thousands):

	March 31,			December 31,
	2015			2014
Debt and unpaid accrued end-of-term payment	$	5,023		$	5,003
Unamortized note discount	(74		)	(80		)
Net debt obligation	$	4,949		$	4,923

Schedule of future principal payments under the Amended Loan

Future principal payments under the Amended Loan are as follows (in thousands):

Year Ending December 31,	Amounts
April through December 31, 2015	$	—
2016	—
2017	2,437
2018	2,563
Total	$	5,000

Schedule of interest expense on debt

Interest expense on the debt was as follows (in thousands):

	Three Months Ended March 31,
	2015		2014
Nominal interest	$	63	$	76
Amortization of debt discount	7		15
End-of-term payment interest	19		20
Total	$	89	$	111

Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2015

Stockholders' Equity

Schedule of reserved shares of common stock for issuance

	March 31,	December 31,
	2015	2014
Options issued and outstanding	4,270,198	3,249,469
Options available for grant under stock option plans	1,193,248	1,341,252
Total	5,463,446	4,590,721

Stock Incentive Plans (Tables)

3 Months Ended

Mar. 31, 2015

Stock incentive plans

Summary of activity under the Company's stock option plans

The following table summarizes activity under the Company’s stock option plans (aggregate intrinsic value in thousands):

	Shares Available for Grant		Stock Options Outstanding		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Balance - December 31, 2014	1,341,252		3,249,469		$	7.59	7.88	$	12,400
Additional options authorized	900,941		—
Granted	(1,082,600	)	1,082,600		8.81
Canceled	33,655		(33,655	)	9.40
Exercised	—		(28,216	)	3.27
Balance - March 31, 2015	1,193,248		4,270,198		$	7.91	8.24	$	7,550
Options vested and exercisable - March 31, 2015			1,639,267		$	4.60	6.71	$	6,212
Options vested and expected to vest - March 31, 2015			4,036,327		$	7.75	8.29	$	7,519

Stock-based Compensation

Stock incentive plans

Summary of share-based compensation expense

	Three Months Ended March 31,
	2015		2014
Cost of revenue	$	17	$	9
Research and development	253		107
Selling and marketing	269		93
General and administrative	684		283
Total	$	1,223	$	492

Stock-based Compensation, employees

Stock incentive plans

Schedule of assumptions used to calculate estimated grant date fair value of stock options using the Black-Scholes option-pricing valuation model

	Three Months Ended March 31,
	2015	2014
Weighted-average volatility	66.06 - 68.82%	77.17 - 78.54%
Weighted-average expected term (years)	6.08	6.08
Risk-free interest rate	1.55 - 1.79%	1.83 - 1.99%
Expected dividend yield	—	—

Organization and Summary of Significant Accounting Policies (Details) $ in Millions		1 Months Ended	3 Months Ended
	Apr. 22, 2015 USD ($)	Apr. 30, 2015 USD ($)	Mar. 31, 2015 segment
Organization and Summary of Significant Accounting Policies
Number of operating segments \| segment			1
Common Stock \| Subsequent Events
Organization and Summary of Significant Accounting Policies
Net proceeds from sale of common stock in private placement \| $	$ 37.3	$ 37.3

Organization and Summary of Significant Accounting Policies (Details 2) - item	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Concentrations of Credit Risk and Other Risks and Uncertainties
Number of major financial institutions with which the company's cash and cash equivalents are deposited	1
Revenue \| Revenue concentration risk
Concentrations of Credit Risk and Other Risks and Uncertainties
Concentrations of credit risk (as a percent)	62.00%	60.00%
Revenue \| Revenue concentration risk \| Medicare
Concentrations of Credit Risk and Other Risks and Uncertainties
Concentrations of credit risk (as a percent)	24.00%	29.00%
Revenue \| Revenue concentration risk \| Aetna
Concentrations of Credit Risk and Other Risks and Uncertainties
Concentrations of credit risk (as a percent)	9.00%	10.00%
Revenue \| Revenue concentration risk \| Cigna
Concentrations of Credit Risk and Other Risks and Uncertainties
Concentrations of credit risk (as a percent)	15.00%	4.00%
Revenue \| Revenue concentration risk \| United Healthcare
Concentrations of Credit Risk and Other Risks and Uncertainties
Concentrations of credit risk (as a percent)	14.00%	17.00%
Accounts receivable \| Gross receivables concentration risk \| Medicare
Concentrations of Credit Risk and Other Risks and Uncertainties
Concentrations of credit risk (as a percent)	40.00%		64.00%
Accounts receivable \| Gross receivables concentration risk \| Aetna
Concentrations of Credit Risk and Other Risks and Uncertainties
Concentrations of credit risk (as a percent)	19.00%		12.00%
Accounts receivable \| Gross receivables concentration risk \| Cigna
Concentrations of Credit Risk and Other Risks and Uncertainties
Concentrations of credit risk (as a percent)	11.00%		0.00%
Accounts receivable \| Gross receivables concentration risk \| United Healthcare
Concentrations of Credit Risk and Other Risks and Uncertainties
Concentrations of credit risk (as a percent)	23.00%		14.00%

Organization and Summary of Significant Accounting Policies (Details 3) - USD ($)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Restricted Cash
Restricted cash, current	$ 118,000		$ 70,000
Restricted cash, noncurrent			118,000
Activity of allowance for doubtful accounts
Allowance for doubtful accounts	85,000		84,000
Write-offs for doubtful accounts	21,000	$ 0
Bad debt expense	22,000	$ 28,000
Headquarters and laboratory facilities, South San Francisco, Lease expiring 2016
Restricted Cash
Restricted cash, current	118,000
Restricted cash, noncurrent			118,000
Amount held as security for lease	$ 118,000		$ 118,000

Organization and Summary of Significant Accounting Policies (Details 4) - USD ($)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Internal-use Software
Net book value	$ 4,132,000		$ 4,161,000
Minimum
Property and Equipment and Internal-use Software
Estimated useful life	3 years
Maximum
Property and Equipment and Internal-use Software
Estimated useful life	5 years
Capitalized software
Property and Equipment and Internal-use Software
Estimated useful life	3 years
Internal-use Software
Total cost	$ 1,008,000		927,000
Accumulated depreciation	385,000		330,000
Net book value	623,000		$ 597,000
Capitalized costs	81,000	$ 25,000
Amortization expense	$ 55,000	$ 32,000

Organization and Summary of Significant Accounting Policies (Details 5) - USD ($)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Asset impairment
Goodwill impairment	$ 0
Indefinite lived assets, other than goodwill, impairment	0
Long-lived asset impairment	0	$ 0
Bonus Accruals
Accrued liabilities associated with employee and executive bonus plans	700,000		$ 1,100,000
Revenue Recognition
Revenue recognized when cash is received	5,800,000	5,100,000
Revenue recognized on accrual basis	$ 5,400,000	$ 2,400,000

Organization and Summary of Significant Accounting Policies (Details 6) - shares	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Options
Outstanding shares of common stock equivalents that have been excluded from diluted net loss per common share
Shares of common stock subject to outstanding options	4,270,198	3,166,419

Business Combination (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	3 Months Ended
	Sep. 16, 2014	Apr. 30, 2015	Mar. 31, 2014	Mar. 31, 2015	Dec. 31, 2014
Fair value of the assets acquired and liabilities assumed:
Goodwill				$ 1,057	$ 1,057
Allegro
Business Combination
Number of Allegro shares received for each share of common stock issued and outstanding of a wholly-owned subsidiary of the Company	1
Conversion right, number of shares	964,377
Conversion right, cash	$ 2,700
Outstanding indebtedness settled in cash	4,300
Acquisition-related costs	500
Transaction bonuses and severance payments	1,200
Acquisition consideration
Stock	10,078
Cash	2,725
Payment of outstanding indebtedness	4,290
Total acquisition consideration	$ 17,093
Closing price of Company's common stock	$ 10.45
Fair value of the assets acquired and liabilities assumed:
Cash and cash equivalents	$ 29
Other assets, net	7
In-process research and development ("IPR&D")	16,000
Goodwill	1,057
Total acquisition consideration	$ 17,093
Discount rate (as a percent)	18.50%
Pro-Forma Financial Information
Revenue			$ 7,476
Net loss			(7,211)
Allegro \| Interest expense related to indebtedness of acquired entity
Pro-Forma Financial Information
Elimination of interest expense			$ 100
Allegro \| IPR&D \| Subsequent Events
Fair value of the assets acquired and liabilities assumed:
Useful life		15 years

Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2015	Dec. 31, 2014
Accrued Liabilities.
Accrued compensation expenses	$ 1,843	$ 2,673
Accrued Genzyme co-promotion fees	1,684	3,309
Accrued other	1,869	1,869
Total accrued liabilities	$ 5,396	$ 7,851

Fair Value Measurements (Details) - USD ($) $ in Millions	Mar. 31, 2015	Dec. 31, 2014
Recurring \| Level I \| Money market funds
Fair value measurements
Financial Assets	$ 23.9	$ 33.2

Commitments and Contingencies (Details)		3 Months Ended
Commitments and Contingencies (Details)	Apr. 29, 2015 USD ($) ft²	Mar. 31, 2015 USD ($) item	Mar. 31, 2014 USD ($)	Dec. 31, 2014 USD ($)
Future minimum lease payments under non-cancelable operating leases
April through December 31, 2015		$ 750,000
2016		1,822,000
2017		2,142,000
2018		2,102,000
2019		2,026,000
Thereafter		14,038,000
Total minimum lease payments		22,880,000
Facilities rent expense		$ 213,000	$ 213,000
Supplies Purchase Commitments
Number of suppliers with which Company has non-cancelable purchase commitment \| item		2
Non-cancelable purchase commitment		$ 1,200,000
Headquarters and laboratory facilities, South San Francisco, Lease expiring 2026 \| Subsequent Events
Operating Leases
Amount of space leased \| ft²	59,000
Security deposit	$ 603,000
Laboratory facilities, Austin, Texas
Operating Leases
Security deposit		$ 75,000		$ 75,000

Debt (Details)	1 Months Ended		3 Months Ended
Debt (Details)	Dec. 31, 2014 USD ($) tranche installment	Jun. 30, 2013 USD ($) installment	Mar. 31, 2015 USD ($)	Mar. 31, 2014 USD ($)	Dec. 01, 2014 USD ($)	Nov. 30, 2014 USD ($)
Interest expense on debt
Total			$ 19,000	$ 20,000
Term Loans
Debt
Maximum borrowing capacity	$ 15,000,000	$ 10,000,000
Amount not drawn				5,000,000
Number of installments \| installment	24
Period after which debt is repayable	24 months
Prepayment penalties for prepayment within one year of the loan origination (as a percent)	2.00%
Prepayment penalties for prepayment within two years of the loan origination (as a percent)	1.00%
Prepayment penalties for prepayment after two years of the loan origination (as a percent)	0.00%
Number of tranches \| tranche	3
Cash paid for interest on debt	$ 14,000
End-of term payment	110,000
Amount of prepayment premium waived						$ 75,000
Amount of end of term payment			237,500		$ 110,000	$ 225,000
Third-party fees paid	45,000
Debt and unpaid accrued end-of-term payment	5,003,000		5,023,000
Unamortized note discount	(80,000)		(74,000)
Net debt obligation	4,923,000		4,949,000
Future principal payments
2017			2,437,000
2018			2,563,000
Total			$ 5,000,000
End of term payment as a percentage of total outstanding principal balance			4.75%
Interest expense on debt
Nominal interest			$ 63,000	76,000
Amortization of debt discount			7,000	15,000
End-of-term payment interest			19,000	20,000
Total			$ 89,000	$ 111,000
Term Loans \| Term Loan Due 2017
Debt
Amount drawn down		$ 5,000,000
Number of installments \| installment		30
Period after which debt is repayable		18 months
Interest rate (as a percent)		6.06%
Prepayment penalties for prepayment within one year of the loan origination (as a percent)		2.25%
Prepayment penalties for prepayment within two years of the loan origination (as a percent)		1.50%
Prepayment penalties for prepayment after two years of the loan origination (as a percent)		0.75%
Repayment of debt	5,000,000
Term Loans \| Term Loan Tranche One
Debt
Maximum borrowing capacity	5,000,000
Amount drawn down	$ 5,000,000
Interest rate (as a percent)	5.00%
Term Loans \| Term Loan Tranche Two
Debt
Maximum borrowing capacity	$ 5,000,000
Term Loans \| Term Loan Tranche Three
Debt
Maximum borrowing capacity	$ 5,000,000

Stockholders' Equity (Details)		1 Months Ended	3 Months Ended
Stockholders' Equity (Details)	Apr. 28, 2015 shares	Apr. 30, 2015 shares	Mar. 31, 2015 USD ($) item $ / shares shares	Dec. 31, 2014 $ / shares shares
Stockholders' Equity
Authorized shares of common stock			125,000,000	125,000,000
Par value of shares of common stock (in dollars per share) \| $ / shares			$ 0.001	$ 0.001
Number of votes for each share of stock \| item			1
Dividends declared \| $			$ 0
Common Stock
Options issued and outstanding (in shares)			4,270,198	3,249,469
Options available for grant under stock option plans (in shares)			1,193,248	1,341,252
Total			5,463,446	4,590,721
Preferred stock, shares authorized			5,000,000	5,000,000
Preferred stock, par value (in dollars per share) \| $ / shares			$ 0.001	$ 0.001
Preferred stock, shares issued			0	0
Preferred stock, shares outstanding			0	0
Common Stock \| Subsequent Events
Common Stock
Number of common stock issued and sold in private placement	4,907,975	4,907,975

Stock Incentive Plans (Details 1) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Shares Available for Grant
Balance at the beginning of the period (in shares)	1,341,252
Additional options authorized (in shares)	900,941
Granted (in shares)	(1,082,600)
Canceled (in shares)	33,655
Balance at the end of the period (in shares)	1,193,248	1,341,252
Stock Options Outstanding
Balance at beginning of the period (in shares)	3,249,469
Granted (in shares)	1,082,600
Canceled (in shares)	(33,655)
Exercised (in shares)	(28,216)
Balance at the end of the period (in shares)	4,270,198	3,249,469
Options vested and exercisable at the end of the period (in shares)	1,639,267
Options vested and expected to vest at the end of the period (in shares)	4,036,327
Weighted Average Exercise Price
Balance at beginning of the period (in dollars per share)	$ 7.59
Granted (in dollars per share)	8.81
Canceled (in dollars per share)	9.40
Exercised (in dollars per share)	3.27
Balance at the end of the period (in dollars per share)	7.91	$ 7.59
Options vested and exercisable at the end of the period (in dollars per share)	4.60
Options vested and expected to vest at the end of the period (in dollars per share)	$ 7.75
Weighted Average Remaining Contractual Life
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	8 years 2 months 27 days	7 years 10 months 17 days
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	8 years 2 months 27 days	7 years 10 months 17 days
Options vested and exercisable at the end of the period	6 years 8 months 16 days
Options vested and expected to vest at the end of the period	8 years 3 months 15 days
Aggregate Intrinsic Value
Balance at the beginning of the period (in dollars)	$ 12,400
Balance at the end of the period (in dollars)	7,550	$ 12,400
Options vested and exercisable at the end of the period (in dollars)	6,212
Options vested and expected to vest at the end of the period (in dollars)	$ 7,519
Additional disclosures
Estimated fair value common stock (in dollars per share)	$ 7.28

Stock Incentive Plans (Details 2) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Stock Incentive Plans
Weighted average fair value of options to purchase common stock granted (in dollars per share)	$ 5.37	$ 10.27
Weighted average fair value of stock options exercised (in dollars per share)	$ 2.50	$ 2.53
Intrinsic value of stock options exercised (in dollars)	$ 0.1	$ 0.1

Stock Incentive Plans (Details 3) - USD ($) $ in Thousands	3 Months Ended
Stock Incentive Plans (Details 3) - USD ($) $ in Thousands	Mar. 31, 2015	Mar. 31, 2014
Stock-based compensation
Granted (in shares)	1,082,600
Stock-based Compensation
Stock-based compensation
Share-based compensation expense (in dollars)	$ 1,223	$ 492
Unrecognized compensation expense (in dollars)	$ 13,400
Period over which unrecognized compensation expense expected to be recognized	3 years 2 months 12 days
Stock-based Compensation \| Cost of revenue
Stock-based compensation
Share-based compensation expense (in dollars)	$ 17	9
Stock-based Compensation \| Research and development
Stock-based compensation
Share-based compensation expense (in dollars)	253	107
Stock-based Compensation \| Selling and marketing
Stock-based compensation
Share-based compensation expense (in dollars)	269	93
Stock-based Compensation \| General and administrative
Stock-based compensation
Share-based compensation expense (in dollars)	$ 684	$ 283
Stock-based Compensation, employees
Assumptions used to calculate estimated fair value of stock options using the Black-Scholes option-pricing valuation model
Weighted-average volatility, low end of range (as a percent)	66.06%	77.17%
Weighted-average volatility, high end of range (as a percent)	68.82%	78.54%
Weighted-average expected term	6 years 29 days	6 years 29 days
Risk-free interest rate, low end of range (as a percent)	1.55%	1.83%
Risk-free interest rate, high end of range (as a percent)	1.79%	1.99%
Stock-based Compensation, non-employees
Stock-based compensation
Granted (in shares)	0
Assumptions used to calculate estimated fair value of stock options using the Black-Scholes option-pricing valuation model
Weighted-average volatility, low end of range (as a percent)		76.70%
Weighted-average volatility, high end of range (as a percent)		76.87%
Risk-free interest rate, low end of range (as a percent)		2.54%
Risk-free interest rate, high end of range (as a percent)		2.66%
Expected dividend yield (as a percent)		0.00%
Stock-based Compensation, non-employees \| Minimum
Assumptions used to calculate estimated fair value of stock options using the Black-Scholes option-pricing valuation model
Weighted-average expected term		8 years 8 months 5 days
Stock-based Compensation, non-employees \| Maximum
Assumptions used to calculate estimated fair value of stock options using the Black-Scholes option-pricing valuation model
Weighted-average expected term		9 years 6 months 4 days

Genzyme Co-promotion Agreement (Details)		1 Months Ended	3 Months Ended		5 Months Ended	7 Months Ended	12 Months Ended	13 Months Ended	14 Months Ended	31 Months Ended
Genzyme Co-promotion Agreement (Details)	Jan. 01, 2015	Feb. 29, 2012 USD ($)	Mar. 31, 2015 USD ($)	Mar. 31, 2014 USD ($)	Mar. 31, 2015 USD ($)	Jul. 31, 2014 USD ($)	Dec. 31, 2012	Mar. 31, 2015 USD ($)	Feb. 27, 2014	Aug. 11, 2014	Feb. 13, 2015 country	Dec. 31, 2014 USD ($)	Jan. 31, 2012 country
Genzyme Co-promotion Agreement
Amortization of up-front co-promotion fee			$ 474,000	$ 625,000
Co-promotion agreement \| Genzyme
Genzyme Co-promotion Agreement
Co-promotion expenses			1,700,000	2,800,000
Outstanding obligation to Genzyme			4,400,000		$ 4,400,000			$ 4,400,000				$ 6,000,000
Amortization of up-front co-promotion fee			500,000	$ 600,000
Co-promotion agreement \| Genzyme \| Accounts payable
Genzyme Co-promotion Agreement
Outstanding obligation to Genzyme			2,700,000		2,700,000			2,700,000				2,700,000
Co-promotion agreement \| Genzyme \| Accrued liabilities
Genzyme Co-promotion Agreement
Outstanding obligation to Genzyme			$ 1,700,000		$ 1,700,000			$ 1,700,000				$ 3,300,000
Afirma thyroid diagnostic solution co-promotion agreement \| Genzyme
Genzyme Co-promotion Agreement
Number of countries outside United States for exclusive promotion under the agreement \| country													40
Co-promotion fee received from Genzyme		$ 10,000,000
Co-promotion fees as a percentage of cash receipts			15.00%		32.00%		50.00%	32.00%	40.00%
Maximum amount to be spent by co-promoter for qualifying clinical development activities in countries that require additional testing						$ 500,000
Amortization period of co-promotion fee										4 years
Ex-U.S. Co-Promotion Agreement \| Genzyme
Genzyme Co-promotion Agreement
Number of countries outside United States for exclusive promotion under the agreement \| country											5
Co-promotion fee paid as a percentage of net revenue	25.00%
Period of agreement	5 years

- Details

Name:	us-gaap_TypeOfArrangementAxis=vcyt_CollaborativeArrangementCopromotionAfirmaThyroidDiagnosticSolutionMember
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Thyroid Cytopathology Partners (Details) - USD ($)	3 Months Ended
Thyroid Cytopathology Partners (Details) - USD ($)	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Thyroid Cytopathology Partners
Outstanding obligations	$ 6,854,000		$ 7,397,000
Thyroid Cytopathology Partners
Thyroid Cytopathology Partners
Notice of intent not to renew period	12 months
Expenses for cytopathology testing and evaluation services	$ 1,100,000	$ 900,000
Outstanding obligations	700,000		$ 1,100,000
Reduction to rent expense for TCP's portion of costs for shared space	$ 23,000	$ 20,000

Income Taxes (Details) $ in Thousands	3 Months Ended
Income Taxes (Details) $ in Thousands	Mar. 31, 2015 USD ($)
Income Taxes
Unrecognized tax benefit	$ 1,600
Unrecognized tax benefits, which if recognized, would affect the effective tax rate	0
Interest expense or penalties related to unrecognized tax benefits	$ 0

Subsequent Events (Details)				1 Months Ended
Subsequent Events (Details)	Apr. 29, 2015 USD ($) ft²	Apr. 28, 2015 $ / shares shares	Apr. 22, 2015 USD ($)	Apr. 30, 2015 USD ($) shares	Mar. 31, 2015 $ / shares
Subsequent Events
Purchase price (in dollars per share) \| $ / shares					$ 7.28
Maximum period for filing registration statement after closing of private placement		30 days
Subsequent Events \| Headquarters and laboratory facilities, South San Francisco, Lease expiring 2026
Subsequent Events
Amount of space leased \| ft²	59,000
Amount held as security for lease	$ 603,000
Subsequent Events \| Common Stock
Subsequent Events
Number of common stock issued and sold in private placement \| shares		4,907,975		4,907,975
Purchase price (in dollars per share) \| $ / shares		$ 8.15
Gross proceeds from sale of stock in private placement			$ 40,000,000
Net proceeds from sale of common stock in private placement			37,300,000	$ 37,300,000
Agent fees and other expenses			$ 2,700,000
Subsequent Events \| IPR&D \| Allegro
Subsequent Events
Amortization period of the acquired IPR&D				15 years