Quanterix(QTRX) - 2019 Q2 - Quarterly Report

PART I — FINANCIAL INFORMATION This section presents the company's financial statements, management's analysis, and related disclosures Special Note Regarding Forward-Looking Statements This section warns investors that forward-looking statements are subject to risks and uncertainties, and actual results may differ materially - The report includes forward-looking statements concerning financial performance subject to risks and uncertainties[8] - The company disclaims any obligation to update forward-looking statements, advising against undue reliance on them as future predictions[9] Financial Statements This section presents unaudited condensed consolidated financial statements, highlighting asset growth, revenue increase, and a wider net loss Unaudited Condensed Consolidated Balance Sheets This section details the company's financial position, presenting assets, liabilities, and equity at specific dates Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $72,025 | $44,429 | | Total current assets | $92,386 | $59,496 | | Total assets | $109,408 | $67,611 | | Liabilities & Equity | | | | Total current liabilities | $17,018 | $18,125 | | Total liabilities | $34,663 | $26,546 | | Total stockholders' equity | $74,745 | $41,065 | | Total liabilities and stockholders' equity | $109,408 | $67,611 | - Total assets significantly increased to $109.4 million from $67.6 million, driven by cash and cash equivalents[13] - Total stockholders' equity grew to $74.7 million from $41.1 million, primarily from an at-the-market stock offering[13] Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss This section outlines the company's financial performance, including revenue, expenses, and net loss over specific periods Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2019 | Q2 2018 | YTD 2019 | YTD 2018 | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $13,536 | $8,643 | $25,872 | $16,164 | | Gross profit | $6,931 | $3,973 | $12,936 | $7,145 | | Loss from operations | $(10,514) | $(7,311) | $(19,873) | $(14,475) | | Net loss | $(10,563) | $(7,343) | $(19,968) | $(14,545) | | Net loss per share | $(0.46) | $(0.34) | $(0.88) | $(0.67) | - Total revenue for Q2 2019 increased by 56.6% year-over-year, driven by a 68.8% increase in product revenue[14] - Net loss widened in Q2 2019 to $10.6 million from $7.3 million in Q2 2018, primarily due to increased Selling, General and Administrative expenses[14] Unaudited Condensed Consolidated Statements of Cash Flows This section reports the company's cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (in thousands) | Activity | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | | :--- | :--- | :--- | | Net cash used in operating activities | $(12,820) | $(13,970) | | Net cash used in investing activities | $(9,830) | $(3,691) | | Net cash provided by (used in) financing activities | $50,272 | $(1,547) | | Net increase (decrease) in cash | $27,622 | $(19,208) | - Net cash provided by financing activities was $50.3 million for the first six months of 2019, primarily due to $48.0 million in net proceeds from an at-the-market offering[18] - Net cash used in investing activities increased to $9.8 million, mainly from purchases of property and equipment, compared to $3.7 million in the prior year period which included an acquisition[18] Unaudited Consolidated Statements of Stockholders' Equity This section details changes in the company's equity, including stock issuances and the impact of net loss - Stockholders' equity increased from $41.1 million at December 31, 2018, to $74.7 million at June 30, 2019[20] - The increase in equity was primarily driven by the sale of common stock in an at-the-market offering, which raised $48.0 million in net proceeds, offset by a net loss of $20.0 million for the six-month period[20] Notes to Condensed Consolidated Financial Statements This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements - The company develops and markets ultra-sensitive digital immunoassay platforms (Simoa) for life sciences research and diagnostics, launching its third instrument, the SP-X, in April 2019[23][24] - On January 1, 2019, the company adopted the new revenue recognition standard ASC 606 using the modified retrospective method, resulting in a $0.4 million adjustment to accumulated deficit[36][37] - Subsequent to the quarter end, on August 1, 2019, the company completed the acquisition of UmanDiagnostics AB for an aggregate price of $22.5 million, consisting of $16.0 million in cash and $6.5 million in common stock[111] - On June 5, 2019, the company issued approximately 2.2 million shares of common stock through an at-the-market offering, resulting in net proceeds of $48.0 million[28][107] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses financial performance, noting revenue growth, improved gross margin, increased operating expenses, and strengthened liquidity Q2 2019 vs Q2 2018 Results (in thousands) | Metric | Q2 2019 | Q2 2018 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $13,536 | $8,643 | $4,893 | 56.6% | | Gross Profit | $6,931 | $3,973 | $2,958 | 74.5% | | R&D Expense | $4,016 | $3,705 | $311 | 8.4% | | SG&A Expense | $13,429 | $7,579 | $5,850 | 77.2% | | Net Loss | $(10,563) | $(7,343) | $(3,220) | 43.9% | - The 56.6% revenue increase in Q2 2019 was driven by higher instrument sales ($2.7 million vs $1.8 million) and consumables sales ($6.1 million vs $3.4 million), reflecting a growing installed base[127][129] - The 77.2% increase in SG&A expense in Q2 2019 was primarily due to headcount additions, public company costs, a new headquarters lease, and approximately $0.9 million in costs associated with the Uman acquisition[133] - The company raised $48.0 million in net proceeds from an at-the-market stock offering during the second quarter of 2019, significantly bolstering its cash position[145] Quantitative and Qualitative Disclosures About Market Risk This section confirms no material changes to the market risk information previously disclosed in the 2018 Annual Report on Form 10-K - There were no material changes to the company's market risk disclosures from those reported in the 2018 Annual Report on Form 10-K[176] Controls and Procedures Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The company's principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of June 30, 2019[177][178] - There were no material changes to the company's internal control over financial reporting during the second quarter of 2019[179] PART II — OTHER INFORMATION This section covers legal proceedings, risk factors, equity sales, and other miscellaneous disclosures Legal Proceedings The company reports it is not currently a party to any material legal proceedings - As of the filing date, the company is not involved in any material legal proceedings[182] Risk Factors New risk factors relate to the UmanDiagnostics AB acquisition, including integration challenges and failure to realize anticipated benefits - New risk factors have been added related to the acquisition of Uman[183] - Key risks include the potential failure to realize anticipated benefits and cost savings from the Uman acquisition and the possibility of business disruption during the integration process[183] - The company notes that managing the expanded operations post-acquisition presents challenges, and failure to do so effectively could adversely impact future results[184] Unregistered Sales of Equity Securities and Use of Proceeds This section confirms no unregistered equity sales and updates on the use of IPO proceeds for operations, investments, and acquisitions - The company completed its IPO on December 11, 2017, receiving net proceeds of approximately $65.6 million[186][187] - As of June 30, 2019, approximately $54.3 million of the IPO proceeds have been used for operating expenses, capital investments, debt payments, and the Aushon acquisition[187][188] Defaults Upon Senior Securities This item is not applicable as the company has not defaulted upon any senior securities - Not applicable[191] Mine Safety Disclosures This item is not applicable to the company's operations - Not applicable[192] Other Information The company reports no other information for this item - Not applicable[193] Exhibits This section lists exhibits filed with the Form 10-Q, including agreements, officer certifications, and XBRL data files - A list of exhibits filed with the Form 10-Q is provided, including the Share Purchase Agreement for Uman, an amendment to a loan agreement, and certifications by the CEO and CFO[194][195]