908 Devices(MASS) - 2025 Q1 - Quarterly Report

Revenue Performance - Revenue from continuing operations for the three months ended March 31, 2025, was $11.8 million, up from$7.4 million in the same period of 2024, representing a 59.5% increase[140] - Total revenue for the three months ended March 31, 2025, was $11.777 million, a 58.7$7.422 million in the same period of 2024[190] - Product revenue increased by $3.297 million, or 63$8.529 million for the three months ended March 31, 2025, compared to $5.232 million in 2024[191] - Service and contract revenue rose by$1.058 million, or 48%, to $3.248 million for the three months ended March 31, 2025, compared to$2.190 million in 2024[195] Profitability and Losses - The company incurred net losses of $9.8 million for the three months ended March 31, 2025, compared to$5.9 million for the same period in 2024, indicating a 66.1% increase in losses[140] - Loss from operations for the three months ended March 31, 2025, was $(11.026) million, compared to$(7.611) million in the same period of 2024, representing a $3.415 million increase in losses[190] - Gross profit for the three months ended March 31, 2025, was$5.541 million, up 42.5% from $3.887 million in 2024[190] - Gross profit margin for product revenue decreased to 45$5.069 million, or 44.2%, to $16.567 million for the three months ended March 31, 2025, compared to$11.498 million in 2024[190] - Research and development expenses increased by $0.537 million, or 16.3$3.829 million for the three months ended March 31, 2025, compared to $3.292 million in 2024[190] - Selling, general and administrative expenses increased to$10.2 million for the three months ended March 31, 2025, up by $2.0 million, or 25$124.3 million, sufficient to fund operations for at least the next twelve months[204] - Net cash used in operating activities was $15.0 million for the three months ended March 31, 2025, primarily due to noncash charges of$50.5 million and changes in operating assets and liabilities[212] - Net cash provided by investing activities was $50.3 million for the three months ended March 31, 2025, mainly from$69.9 million in proceeds from the sale of the Desktop Portfolio[214] - Cash used in financing activities was $0.2 million for the three months ended March 31, 2025, primarily for withholding taxes on vested equity awards[216] Strategic Outlook - The company expects to continue incurring net losses as it focuses on growing sales and scaling manufacturing operations[140] - The company plans to enhance its device technology and expand sales efforts to drive future growth[152] - The company plans to expand global sales efforts, particularly through distribution channels, as it assesses international market needs[190] - The company may seek additional funding through various means, including private or public equity financings and strategic alliances, but there is no assurance of obtaining funds on acceptable terms[209] Market and Economic Factors - The company is closely monitoring macroeconomic factors, including inflation and interest rates, which may impact its business and customer spending[143] Product and Placement Metrics - Recurring revenue accounted for 37$2.5 million due to the rise in the company's publicly quoted share price during the three months ended March 31, 2025[200] - Interest income decreased by $0.8 million to$0.9 million for the three months ended March 31, 2025, primarily due to a lower cash and marketable securities balance[201]