908 Devices(MASS) - 2024 Q3 - Quarterly Report

Revenue and Growth - The company generated revenue of $40.8 million for the nine months ended September 30, 2024, compared to$35.9 million for the same period in 2023, representing a year-over-year increase of approximately 13.6%[134] - Total product and service revenue for Q3 2024 was $16.732 million, compared to$14.297 million in Q3 2023, representing a 17.1% increase; for the nine months ended September 30, 2024, revenue was $40.670 million, up from$35.508 million[166] - Recurring revenue accounted for 39% of total product and service revenue for the nine months ended September 30, 2024, up from 33% in the same period of 2023[150] - Device sales accounted for 61% of total product and service revenue for the nine months ended September 30, 2024, down from 67% in the same period of 2023; recurring revenue rose to 39% from 33%[160] - Recurring revenue for Q3 2024 was $6.087 million, a 70.3$3.578 million in Q3 2023; for the nine months, it rose to $15.931 million from$11.747 million[166] Losses and Financial Position - Net losses for the nine months ended September 30, 2024, were $52.8 million, compared to$29.0 million for the same period in 2023, indicating a significant increase in losses[134] - The company has an accumulated deficit of $223.4 million as of September 30, 2024, and expects to continue incurring net losses while focusing on sales growth and product development[134] - The company recorded a net loss of$29.295 million for the three months ended September 30, 2024, compared to a net loss of $7.093 million in the same period last year, reflecting an increase of$22.202 million[183] - Net cash used in operating activities for the nine months ended September 30, 2024, was $28.0 million, primarily due to a net loss of$52.8 million[233] Expenses and Investments - Total operating expenses rose significantly to $38.549 million, an increase of$21.591 million or 127% compared to $16.958 million in the prior year, largely due to a$30.5 million goodwill impairment[196] - Research and development expenses are expected to increase in future periods to maintain competitive positioning[174] - Selling, general and administrative expenses are anticipated to rise as the company expands its sales and marketing efforts and introduces new products[175] - Research and development expenses rose by $2.5 million, or 15$19.0 million, representing 46% of total revenue[212] - Selling, general and administrative expenses increased by $5.6 million, or 16$39.9 million, accounting for 98% of total revenue[213] Acquisitions and Strategic Moves - The company entered into an Equity Purchase Agreement to acquire RedWave for an initial payment of $45.0 million in cash and 1,497,171 unregistered shares of common stock, enhancing its portfolio of handheld chemical analysis devices[133] - RedWave Technology was acquired on April 29, 2024, and its financial results are included in the consolidated financial statements as of September 30, 2024[243] Cash and Financing - As of September 30, 2024, the company had cash, cash equivalents, and marketable securities totaling$71.7 million, sufficient to fund operations for at least the next twelve months[219] - The company may seek additional funding through various means, including equity financings and collaborations, but there is no assurance of obtaining favorable terms[231] - The Amended 2022 Revolver provides for a revolving line of credit of up to $10.0 million, with interest accruing at a minimum of 4.50$0.2 million for both the nine months ended September 30, 2024 and 2023, primarily due to a reduction in deferred tax liabilities[181] - As of December 31, 2023, the company had gross federal operating loss carryforwards of $108.2 million, which may offset future taxable income[182] - The company is not currently party to any material legal proceedings[246] Internal Controls and Reporting - There have been no material changes in internal control over financial reporting during the most recently completed fiscal quarter[244] - The management evaluated the effectiveness of disclosure controls and procedures and concluded they were effective at a reasonable assurance level as of the end of the reporting period[242] - There have been no material changes to the risk factors during the nine months ended September 30, 2024, compared to the 2023 Form 10-K[247]