Part I. Financial Information [Item 1. Condensed Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Financial%20Statements%20(unaudited)) The company reported decreased H1 2020 revenues and increased net loss due to COVID-19, maintaining significant cash [Condensed Balance Sheets](index=3&type=section&id=Condensed%20Balance%20Sheets) | Balance Sheet Highlights (in thousands) | June 30, 2020 (Unaudited) | December 31, 2019 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $63,700 | $72,084 | | Accounts receivable, net | $7,263 | $5,715 | | Total current assets | $73,463 | $81,250 | | Total assets | $80,513 | $88,310 | | **Liabilities & Stockholders' Equity** | | | | Total current liabilities | $5,755 | $5,895 | | Borrowings-non-current portion, net | $26,249 | $25,854 | | Total liabilities | $32,672 | $32,651 | | Total stockholders' equity | $47,841 | $55,659 | | Total liabilities and stockholders' equity | $80,513 | $88,310 | [Condensed Statements of Operations](index=4&type=section&id=Condensed%20Statements%20of%20Operations) | Statement of Operations (in thousands) | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $8,948 | $10,474 | $18,532 | $19,734 | | Costs of revenue | $3,338 | $4,992 | $7,883 | $9,434 | | Selling, general and administrative expenses | $8,276 | $7,302 | $17,902 | $13,481 | | Loss from operations | ($3,417) | ($2,410) | ($8,638) | ($4,284) | | Net loss | ($3,363) | ($2,785) | ($8,926) | ($5,489) | | Net loss per share, basic and diluted | ($0.27) | ($78.87) | ($0.71) | ($155.33) | [Condensed Statements of Cash Flows](index=6&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) | Cash Flows (in thousands) | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | | Net cash used in operating activities | ($8,057) | ($4,118) | | Net cash used in investing activities | ($237) | ($75) | | Net cash (used in) provided by financing activities | ($90) | $7,266 | | Net change in cash, cash equivalents and restricted cash | ($8,384) | $3,073 | [Notes to Unaudited Condensed Financial Statements](index=7&type=section&id=Notes%20to%20Unaudited%20Condensed%20Financial%20Statements) - As of June 30, 2020, the company had cash and cash equivalents of **$63.7 million** and an accumulated deficit of **$173.5 million**. Management believes existing capital resources are sufficient to fund operations for at least the next twelve months[20](index=20&type=chunk) - The AVISE® CTD test remains the primary revenue driver, accounting for **72%** of total revenue for the first six months of 2020, down from **83%** in the same period of 2019[28](index=28&type=chunk) - The company has significant payer concentration, with Janssen, Medicare, Blue Shield, and United Healthcare each representing over **10%** of revenue or accounts receivable in various periods[27](index=27&type=chunk) - The COVID-19 pandemic significantly impacted operations, causing AVISE® CTD test volumes to decrease by approximately **31%** in Q2 2020 compared to Q2 2019. The company received a **$0.7 million** grant from the CARES Act Provider Relief Fund, recognized as other income[92](index=92&type=chunk)[96](index=96&type=chunk) - The company's 2017 Term Loan requires it to meet a specified revenue level. The company believes it is reasonably possible it may fail to meet this covenant in Q3 2020 due to the impact of the COVID-19 pandemic[68](index=68&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses COVID-19's negative impact on H1 2020 revenue and net loss, noting liquidity and potential loan covenant breach [Overview](index=22&type=section&id=Overview) - The company's strategy is to integrate its portfolio of AVISE® testing products with the marketing of therapeutics to rheumatologists, exemplified by its co-promotion agreement with Janssen for SIMPONI®[101](index=101&type=chunk) - The lead product, AVISE® CTD, accounted for **72%** of revenue for the six months ended June 30, 2020. The SIMPONI® co-promotion contributed approximately **$2.1 million** in revenue during the same period[102](index=102&type=chunk) [COVID-19 Impact](index=25&type=section&id=COVID-19%20Impact) - The COVID-19 pandemic led to a significant reduction in patient flow and test volumes. AVISE® CTD test volumes decreased by **12%** from March 15-31 and by **31%** during Q2 2020, compared to the same periods in the prior year[112](index=112&type=chunk) - Test volumes showed signs of recovery, with a **2%** YoY increase from July 1-24, 2020, and sequential monthly increases of **45%** in May and **52%** in June from the April 2020 low[112](index=112&type=chunk) - In response to the pandemic, the company terminated temporary employees and **17 full-time employees**, halted travel, and increased the use of virtual sales tools[113](index=113&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) | Financial Performance (in thousands) | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $8,948 | $10,474 | ($1,526) | -14.6% | | Costs of Revenue | $3,338 | $4,992 | ($1,654) | -33.1% | | SG&A Expenses | $8,276 | $7,302 | $974 | 13.3% | | Loss from Operations | ($3,417) | ($2,410) | ($1,007) | 41.8% | | Net Loss | ($3,363) | ($2,785) | ($578) | 20.7% | | Financial Performance (in thousands) | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $18,532 | $19,734 | ($1,202) | -6.1% | | Costs of Revenue | $7,883 | $9,434 | ($1,551) | -16.4% | | SG&A Expenses | $17,902 | $13,481 | $4,421 | 32.8% | | Loss from Operations | ($8,638) | ($4,284) | ($4,354) | 101.6% | | Net Loss | ($8,926) | ($5,489) | ($3,437) | 62.6% | - The decrease in Q2 and H1 2020 revenue was driven by lower diagnostic test volumes due to COVID-19, partially offset by increased revenue from the SIMPONI® co-promotion, which grew to **$2.1 million** in H1 2020 from **$0.4 million** in H1 2019[134](index=134&type=chunk)[142](index=142&type=chunk)[143](index=143&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2020, the company had **$63.7 million** in cash and cash equivalents and an accumulated deficit of **$173.5 million**[151](index=151&type=chunk)[152](index=152&type=chunk) - The company's Amended Loan Agreement with Innovatus has covenants requiring minimum liquidity of **$2.0 million** and achievement of certain minimum revenue amounts[154](index=154&type=chunk) - Management believes it is reasonably possible that the company may fail to meet its financial performance covenant in Q3 2020 due to the adverse impact of the COVID-19 pandemic on testing volumes[154](index=154&type=chunk) - Based on the current business plan, management believes existing cash and cash equivalents will be sufficient to meet cash requirements for at least the next 12 months[159](index=159&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable for the reporting period - The company has indicated that this disclosure is not applicable[175](index=175&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of June 30, 2020, with no material internal control changes - Based on an evaluation as of the end of the period, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective at the reasonable assurance level[178](index=178&type=chunk) - There were no changes in internal control over financial reporting during the three months ended June 30, 2020, that have materially affected, or are reasonably likely to materially affect, internal controls[180](index=180&type=chunk) Part II. Other Information [Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings - The company reports that it is not currently a party to any material legal proceedings but may be involved in ordinary course of business proceedings from time to time[182](index=182&type=chunk) [Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) Key risks include COVID-19's impact on test volumes, potential loan covenant breaches, and challenges in promoting therapeutics - The COVID-19 pandemic poses a significant risk, having already caused AVISE® CTD test volumes to decrease by **31%** in Q2 2020 YoY. The ongoing pandemic could disrupt facilities, supply chains, and commercial activities[184](index=184&type=chunk) - The company's term loan contains restrictive covenants, and it is considered 'reasonably possible' that the company may fail to meet the financial performance covenant in Q3 2020 due to COVID-19, which could trigger an event of default[188](index=188&type=chunk) - Future growth is dependent on the successful promotion of therapeutics like SIMPONI®. The agreement with Janssen was amended due to COVID-19, and Janssen can terminate the agreement with **30 days'** notice, posing a risk to the company's strategic investment[190](index=190&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered equity sales occurred; $10.5 million of $50.4 million IPO proceeds used for selling and marketing - The company's September 2019 IPO generated net proceeds of approximately **$50.4 million**[197](index=197&type=chunk) - As of June 30, 2020, approximately **$10.5 million** of the IPO proceeds have been used, primarily for selling and marketing activities[198](index=198&type=chunk) [Defaults Upon Senior Securities](index=41&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section is not applicable - Not applicable[200](index=200&type=chunk) [Mine Safety Disclosures](index=41&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable - Not applicable[201](index=201&type=chunk) [Other Information](index=41&type=section&id=Item%205.%20Other%20Information) No other information was reported for this item - None[202](index=202&type=chunk) [Exhibits](index=42&type=section&id=Item%206.%20Exhibits) Exhibits include Janssen co-promotion agreement amendments and CEO/CFO certifications required by Sarbanes-Oxley Act - Key exhibits filed include Amendment 2 to the Co-Promotion Agreement with Janssen Biotech, Inc., dated June 18, 2020, and officer certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906[204](index=204&type=chunk)

Exagen Inc. (NASDAQ:XGN) Q1 2020 Earnings Conference Call May 11, 2020 4:30 PM ET Company Participants Mark Hazeltine - Senior Vice President of Finance & Corporate Development Ron Rocca - President & Chief Executive Officer Kamal Adawi - Chief Financial Officer Conference Call Participants Brian Weinstein - William Blair Kyle Mikson - Cantor Fitzgerald Operator Greetings, and welcome to the Exigen Quarter One 2020 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answe ...

Corporate presentation As of March 31, 2020 nasdaq: axgn axogen® Safe harbor statement This presentation contains "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or predictions of future conditions, events, or results based on various assumptions and management's estimates of trends and economic factors in the markets in which we are active, as well as our business plans. Words such as "expects," ...

Part I. Financial Information [Condensed Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Financial%20Statements%20(unaudited)) The company's Q1 2020 financials show slightly increased revenue to $9.6 million, a widened net loss to $5.6 million, a strong cash position, and the initial negative impacts of the COVID-19 pandemic [Condensed Balance Sheets](index=3&type=section&id=Condensed%20Balance%20Sheets) As of March 31, 2020, total assets decreased to $84.6 million while total liabilities increased, reflecting the quarter's net loss and an accumulated deficit of $170.2 million Condensed Balance Sheet Data (in thousands) | Account | March 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $68,648 | $72,084 | | Total current assets | $77,575 | $81,250 | | Total assets | $84,644 | $88,310 | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | $7,329 | $5,895 | | Total liabilities | $34,107 | $32,651 | | Accumulated deficit | $(170,165) | $(164,602) | | Total stockholders' equity | $50,537 | $55,659 | [Condensed Statements of Operations](index=4&type=section&id=Condensed%20Statements%20of%20Operations) For Q1 2020, revenue grew 3.5% to $9.6 million, but a 55.8% surge in SG&A expenses drove a net loss of $5.6 million Condensed Statements of Operations (in thousands, except per share data) | Account | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :--- | :--- | :--- | | Revenue | $9,584 | $9,260 | | Costs of revenue | $4,545 | $4,442 | | Selling, general and administrative expenses | $9,626 | $6,179 | | Loss from operations | $(5,221) | $(1,874) | | Net loss | $(5,563) | $(2,704) | | Net loss per share, basic and diluted | $(0.44) | $(76.46) | [Condensed Statements of Cash Flows](index=6&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) Net cash used in operating activities increased to $3.3 million in Q1 2020 due to a larger net loss, resulting in a total net cash decrease of $3.4 million for the quarter Condensed Statements of Cash Flows (in thousands) | Activity | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :--- | :--- | :--- | | Net cash used in operating activities | $(3,301) | $(1,950) | | Net cash used in investing activities | $(84) | $(363) | | Net cash (used in) provided by financing activities | $(51) | $3,476 | | Net change in cash, cash equivalents and restricted cash | $(3,436) | $1,163 | [Notes to Unaudited Condensed Financial Statements](index=7&type=section&id=Notes%20to%20Unaudited%20Condensed%20Financial%20Statements) Key notes highlight the company's liquidity, revenue concentration, debt covenant risks, and the significant emerging impact of the COVID-19 pandemic - The company has suffered **recurring losses** and negative cash flows since inception, with an **accumulated deficit of $170.2 million** as of March 31, 2020; however, management believes its **existing cash of $68.6 million is sufficient** for at least the next twelve months[24](index=24&type=chunk) - The **AVISE® CTD test is the primary revenue driver**, accounting for approximately **83% of revenue** for the three months ended March 31, 2020[32](index=32&type=chunk) - The company's term loan with Innovatus has a revenue covenant, and the company believes it is **reasonably possible it may fail to meet this covenant** in Q2 or Q3 2020 due to the COVID-19 pandemic[71](index=71&type=chunk) - The COVID-19 pandemic caused a **significant decrease in AVISE® CTD test volumes**, with a **12% decrease from March 15-31** and a **56% decrease in April** compared to the same periods in the prior year[96](index=96&type=chunk) - In response to the pandemic, the company terminated some employees, resulting in a **$0.3 million restructuring charge**, and received benefits from the CARES Act[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the adverse COVID-19 impact on test volumes, a Q1 revenue increase offset by higher SG&A costs, and liquidity risks related to debt covenants [Overview and COVID-19 Impact](index=22&type=section&id=Overview%20and%20COVID-19%20Impact) The company's business, centered on the AVISE® CTD test, was materially impacted by COVID-19 in late Q1 2020, prompting cost-saving measures - The company's lead testing product, **AVISE® CTD, comprised 83% of revenue** for the three months ended March 31, 2020[103](index=103&type=chunk) - The COVID-19 pandemic led to a **significant reduction in test volumes**, with AVISE® CTD tests **decreasing by 12% from March 15-31 and 56% in April**, compared to the same periods in the prior year[110](index=110&type=chunk) - In response to the pandemic, the company **terminated temporary and six full-time employees**, increased use of virtual sales tools, halted travel, and instituted a hiring freeze[112](index=112&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Q1 2020 revenue rose 3.5% to $9.6 million, but a 55.8% increase in SG&A expenses from sales force expansion widened the net loss to $5.6 million Comparison of Operations (in thousands) | Account | Q1 2020 | Q1 2019 | Change ($) | | :--- | :--- | :--- | :--- | | Revenue | $9,584 | $9,260 | $324 | | Costs of revenue | $4,545 | $4,442 | $103 | | Selling, general and administrative | $9,626 | $6,179 | $3,447 | | Loss from operations | $(5,221) | $(1,874) | $(3,347) | | Net loss | $(5,563) | $(2,704) | $(2,859) | - Revenue increased due to a **rise in AVISE® CTD tests delivered** (27,126 in Q1 2020 vs 24,085 in Q1 2019), but was offset by **lower average reimbursement** and a decrease in volume in late March due to COVID-19[134](index=134&type=chunk) - **SG&A expenses increased by $3.4 million**, primarily due to a **$1.9 million increase in employee-related expenses** from expanding the sales force from 41 to 62 representatives[136](index=136&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company holds $68.6 million in cash post-IPO but faces a 'reasonably possible' risk of breaching its loan's revenue covenant due to COVID-19 impacts - As of March 31, 2020, the company had **$68.6 million in cash and cash equivalents** and an **accumulated deficit of $170.2 million**[141](index=141&type=chunk)[142](index=142&type=chunk) - The company's Amended Loan Agreement with Innovatus requires maintaining **minimum liquidity of $2.0 million** and achieving certain minimum revenue amounts[144](index=144&type=chunk) - The company believes it is **reasonably possible that it may fail to meet its financial performance covenant** under the loan agreement in Q2 or Q3 2020 due to the COVID-19 pandemic's impact[144](index=144&type=chunk) Summary of Cash Flows (in thousands) | Activity | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :--- | :--- | :--- | | Net cash used in operating activities | $(3,301) | $(1,950) | | Net cash used in investing activities | $(84) | $(363) | | Net cash (used in) provided by financing activities | $(51) | $3,476 | [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company indicates that this disclosure is not applicable for the period - Not applicable[163](index=163&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2020, with no material changes to internal controls - Based on an evaluation as of the end of the reporting period, the principal executive officer and principal financial officer concluded that the company's **disclosure controls and procedures were effective** at the reasonable assurance level[167](index=167&type=chunk) - There were **no changes in internal control over financial reporting** during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[168](index=168&type=chunk) Part II. Other Information [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company reports it is not currently involved in any material legal proceedings - The company is **not currently a party to any material legal proceedings**[170](index=170&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) The company's primary risks stem from the COVID-19 pandemic's impact on test volumes and the potential to breach its term loan's revenue covenants - The COVID-19 pandemic poses a **significant risk**, having already caused AVISE® CTD test volumes to **decrease by 12% in late March and 56% in April 2020** compared to the prior year[172](index=172&type=chunk) - The pandemic could **disrupt laboratory operations, supply chains**, and commercialization activities, and may lead to decreased gross margins[173](index=173&type=chunk) - The company's term loan contains a financial covenant requiring a specified level of revenue, and it is **'reasonably possible' the company may fail to meet this covenant in Q2 or Q3 2020**[176](index=176&type=chunk)[177](index=177&type=chunk) - **Failure to comply with loan covenants** could result in an event of default, allowing the lender to **declare all indebtedness immediately due and payable**[178](index=178&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered equity sales and details the use of $5.6 million from its $50.4 million IPO proceeds as of March 31, 2020 - The September 2019 IPO generated **net proceeds of approximately $50.4 million**[181](index=181&type=chunk) - As of March 31, 2020, **approximately $5.6 million of the IPO proceeds have been used**, primarily for selling and marketing activities[182](index=182&type=chunk) [Defaults Upon Senior Securities](index=36&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company indicates that this disclosure is not applicable - Not applicable[184](index=184&type=chunk) [Mine Safety Disclosures](index=36&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company indicates that this disclosure is not applicable - Not applicable[185](index=185&type=chunk) [Other Information](index=36&type=section&id=Item%205.%20Other%20Information) The company reports no other material information for this item - None[186](index=186&type=chunk) [Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including required certifications and XBRL data files

Start Time: 16:30 January 1, 0000 5:07 PM ET Exagen Inc. (NASDAQ:XGN) Q4 2019 Earnings Conference Call March 25, 2020, 16:30 PM ET Company Participants Ron Rocca - President and CEO Kamal Adawi - CFO Mark Hazeltine - SVP of Finance & Corporate Development Conference Call Participants Doug Schenkel - Cowen and Company Brian Weinstein - William Blair Craig Bijou - Cantor Fitzgerald Operator Good afternoon. Welcome to Exagen Inc. Fourth Quarter and Full Year 2019 Results Conference Call. As a reminder, today’s ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 001-39049 EXAGEN INC. (Exact name of registrant as specified in its charter) Delaware 20-0434866 (State or other jurisdiction of incorpor ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-39049 EXAGEN INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) 1261 Liberty Way, Suite ...