908 Devices(MASS) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements (Unaudited) Presents unaudited condensed consolidated financial statements and notes for periods ending June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total current assets | $147,865 | $103,055 | | Total assets | $191,701 | $159,476 | | Total current liabilities | $29,708 | $25,149 | | Total liabilities | $42,884 | $44,884 | | Total stockholders' equity | $148,817 | $114,592 | - Total assets increased by $32.2 million from December 31, 2024, to June 30, 2025, primarily driven by increases in cash and cash equivalents, marketable securities, and inventory[13] - Total stockholders' equity increased by $34.2 million, largely due to net income and additional paid-in capital[13] Condensed Consolidated Statements of Operations Condensed Consolidated Statements of Operations (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $13,035 | $11,462 | $24,813 | $18,884 | | Gross profit | $6,373 | $6,162 | $11,915 | $10,049 | | Total operating expenses | $21,534 | $14,701 | $38,101 | $26,199 | | Net loss from continuing operations | $(12,908) | $(7,573) | $(22,745) | $(13,468) | | Net income (loss) from discontinued operations | $(398) | $(4,975) | $53,042 | $(9,997) | | Net income (loss) attributable to common stockholders | $(13,306) | $(12,548) | $30,297 | $(23,465) | | Basic and diluted EPS (continuing operations) | $(0.36) | $(0.22) | $(0.64) | $(0.40) | | Basic and diluted EPS (discontinued operations) | $(0.01) | $(0.15) | $1.49 | $(0.30) | | Basic and diluted EPS (total) | $(0.37) | $(0.37) | $0.85 | $(0.70) | - Total revenue from continuing operations increased by 13.7% for the three months ended June 30, 2025, and by 31.4% for the six months ended June 30, 2025, compared to the respective prior periods[15] - Net loss from continuing operations widened significantly for both the three and six months ended June 30, 2025, primarily due to a substantial increase in the change in fair value of contingent consideration[15] Condensed Consolidated Statements of Comprehensive Income (Loss) Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) attributable to common stockholders | $(13,306) | $(12,548) | $30,297 | $(23,465) | | Total other comprehensive loss | $(14) | $(122) | $(1,162) | $(507) | | Comprehensive income (loss) | $(13,320) | $(12,670) | $29,135 | $(23,972) | - Comprehensive income for the six months ended June 30, 2025, was positive $29.1 million, a significant improvement from a loss of $23.9 million in the prior year, largely driven by the gain on sale of discontinued operations[17] Condensed Consolidated Statements of Stockholders' Equity Condensed Consolidated Statements of Stockholders' Equity (in thousands) | Metric (in thousands) | December 31, 2024 | June 30, 2025 | | :-------------------- | :---------------- | :------------ | | Common Stock Shares | 35,098,493 | 36,057,576 | | Additional Paid-in Capital | $356,216 | $361,305 | | Accumulated Deficit | $(242,805) | $(212,508) | | Total Stockholders' Equity | $114,592 | $148,817 | - Total stockholders' equity increased by $34.2 million from December 31, 2024, to June 30, 2025, primarily due to net income of $43.6 million (as of March 31, 2025, which includes the gain on sale of discontinued operations) and stock-based compensation expense, partially offset by a net loss in the second quarter[20] Condensed Consolidated Statements of Cash Flows Condensed Consolidated Statements of Cash Flows (in thousands) | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(20,803) | $(22,397) | | Net cash provided by (used in) investing activities | $38,726 | $(50,891) | | Net cash used in financing activities | $(267) | $(928) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $17,683 | $(74,230) | | Cash, cash equivalents and restricted cash at end of period | $61,886 | $46,982 | - Net cash provided by investing activities significantly improved to $38.7 million for the six months ended June 30, 2025, compared to a use of $50.9 million in the prior year, primarily driven by proceeds from the sale of the Desktop Portfolio[21] - The company experienced a net increase in cash, cash equivalents, and restricted cash of $17.7 million for the six months ended June 30, 2025, reversing a decrease of $74.2 million in the same period last year[21] Notes to Unaudited Condensed Consolidated Financial Statements 1. Nature of the Business and Basis of Presentation Describes the company's core business, RedWave acquisition, Desktop Portfolio divestment, and operational funding - The Company acquired RedWave Technology in April 2024, expanding its portfolio with portable Fourier Transform Infrared (FTIR) spectroscopic analyzers for rapid chemical identification[24] - The Company sold its Desktop Portfolio to Repligen Corporation on March 4, 2025, classifying it as a discontinued operation due to its strategic shift and major effect on financial results[25][33] - The Company incurred net losses from continuing operations of $22.7 million for the six months ended June 30, 2025, and had an accumulated deficit of $212.5 million as of June 30, 2025, expecting continued operating losses[32] 2. Summary of Significant Accounting Policies Summarizes significant accounting policies, including GAAP, discontinued operations, revenue recognition, fair value, and recent pronouncements - The Desktop Portfolio was classified as a discontinued operation in accordance with ASC 205, with all historical operating results reclassified[40][41] Revenue by Stream (in thousands) | Revenue Stream | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Device sales revenue | $8,282 | $7,768 | $15,693 | $12,357 | | Recurring revenue | $4,733 | $3,694 | $9,037 | $6,527 | | Contract revenue | $20 | $— | $83 | $— | | Total revenue | $13,035 | $11,462 | $24,813 | $18,884 | Revenue by End-User Entity Type (in thousands) | End-User Entity Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | United States federal and defense | $2,886 | $3,653 | $4,615 | $7,805 | | United States state authorities and local municipalities | $7,561 | $5,369 | $12,248 | $7,405 | | Rest of world national and provincial organizations | $2,033 | $2,079 | $6,707 | $3,313 | | Global pharmaceutical, industrial and other | $555 | $361 | $1,243 | $361 | | Total revenue | $13,035 | $11,462 | $24,813 | $18,884 | 3. Discontinued Operation and TSA Outlines the Desktop Portfolio sale to Repligen, generating a $56.2 million pre-tax gain, and income from the Transition Services Agreement - The sale of the Desktop Portfolio to Repligen on March 4, 2025, resulted in a pre-tax gain of $56.2 million[69][71] Financial Results of Discontinued Operations (prior to sale, in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $— | $2,585 | $1,076 | $5,154 | | Gross profit | $— | $1,256 | $165 | $2,373 | | Net income (loss) from discontinued operations, net of tax | $(398) | $(4,975) | $53,042 | $(9,997) | - Income from the Transition Services Agreement (TSA) with Repligen, which was substantially completed by June 30, 2025, contributed $1.6 million in net income for the six months ended June 30, 2025[74][189] 4. Fair Value Measurements Outlines fair value measurements of financial instruments, categorized by Level 1, 2, and 3, noting a $9.3 million increase in contingent consideration Fair Value Measurements at June 30, 2025 (in thousands) | Asset/Liability | Level 1 | Level 2 | Level 3 | Total | | :---------------- | :------ | :------ | :------ | :---- | | Cash equivalents - Money market funds | $21,743 | $— | $— | $21,743 | | Marketable securities - U.S. Treasury securities | $— | $56,833 | $— | $56,833 | | Acquisition-related contingent consideration | $— | $— | $11,575 | $11,575 | - The fair value of acquisition-related contingent consideration increased by $9.3 million for the six months ended June 30, 2025, primarily due to increased FTIR revenue projections and the company's publicly quoted share price[82][83] 5. Marketable Securities Outlines marketable securities, primarily U.S. Treasury securities, valued at $56.8 million as of June 30, 2025 Marketable Securities (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :----- | :------------ | :---------------- | | Fair Value of U.S. Treasury securities | $56,833 | $25,568 | - The company purchased approximately $49.5 million of U.S. Treasury securities and had $18.6 million mature during the six months ended June 30, 2025[84] 6. Inventory Outlines inventory composition, increasing to $15.5 million as of June 30, 2025, driven by raw materials and finished goods Inventory Composition (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :--------- | :------------ | :---------------- | | Raw materials | $11,308 | $7,366 | | Work-in-progress | $991 | $1,355 | | Finished goods | $3,162 | $2,165 | | Total | $15,461 | $10,886 | - Total inventory increased by $4.6 million, or 42%, from December 31, 2024, to June 30, 2025[85] 7. Intangible Assets, net Details intangible assets, primarily Developed Technology and Customer Relationships, with a net book value of $37.3 million as of June 30, 2025 Intangible Assets, Net (in thousands) | Category | June 30, 2025 Net Book Value | December 31, 2024 Net Book Value | | :-------------------- | :----------------------------- | :------------------------------- | | Customer Relationships | $2,136 | $2,292 | | Developed Technology | $35,118 | $36,388 | | Total | $37,254 | $38,680 | Amortization Expense for Intangible Assets (in thousands) | Expense Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Cost of revenue | $634 | $423 | $1,269 | $423 | | Selling, general and administrative expenses | $79 | $52 | $157 | $52 | | Total | $713 | $475 | $1,426 | $475 | 8. Accrued Expenses Outlines accrued expenses, decreasing to $5.3 million as of June 30, 2025, mainly from lower employee compensation and benefits Accrued Expenses (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :----------------------------- | :------------ | :---------------- | | Accrued employee compensation and benefits | $3,544 | $5,144 | | Accrued warranty | $696 | $877 | | Accrued professional fees | $673 | $785 | | Accrued other | $374 | $389 | | Total | $5,287 | $7,195 | - Accrued employee compensation and benefits decreased by $1.6 million from December 31, 2024, to June 30, 2025[87] 9. Restructuring Outlines the November 2024 restructuring, including an 11% workforce reduction, facility abandonment, and $1.4 million in total restructuring expenses - In November 2024, the Company implemented an approximately 11% workforce reduction as part of an organizational restructuring to strengthen operational efficiencies[88] - In June 2025, the Company abandoned its Boston facility and relocated its corporate headquarters to Burlington, Massachusetts, incurring a $1.0 million restructuring charge for lease abandonment[89][90] - Total restructuring expenses for the six months ended June 30, 2025, were approximately $1.4 million, including facility abandonment and employee-related costs[90] 10. Long-Term Debt Outlines the Amended 2022 Loan Revolver with Silicon Valley Bank, providing a $10.0 million credit line with specific financial covenants - The Company has an Amended 2022 Revolver with Silicon Valley Bank, providing a revolving line of credit up to $10.0 million, with interest-only payments permitted through November 3, 2025[91][93] - Financial covenants include maintaining $20.0 million on account at SVB and ensuring unrestricted cash minus advances is not less than the greater of $10.0 million or nine months of cash burn[95] 11. Equity and Net Income (Loss) per Share Outlines the company's equity structure, including common stock and warrants, and the calculation of basic and diluted net income (loss) per share - As of June 30, 2025, the Company had 36,057,576 shares of common stock issued and outstanding, and warrants for the purchase of 92,703 shares[13][97] Net Income (Loss) per Share (in thousands, except share and per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss from continuing operations per share | $(0.36) | $(0.22) | $(0.64) | $(0.40) | | Net income (loss) from discontinued operations per share | $(0.01) | $(0.15) | $1.49 | $(0.30) | | Net income (loss) per share (total) | $(0.37) | $(0.37) | $0.85 | $(0.70) | | Weighted average common shares outstanding (basic and diluted) | 35,877,947 | 34,061,933 | 35,633,573 | 33,386,413 | - Due to net losses from continuing operations, basic and diluted net loss per share are identical for all periods presented, as potential dilutive securities are anti-dilutive[101] 12. Stock-Based Compensation Outlines stock-based compensation expense, totaling $4.6 million for the six months ended June 30, 2025, with $11.4 million unrecognized RSU cost Stock-Based Compensation Expense (in thousands) | Expense Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Cost of revenue | $107 | $122 | $223 | $218 | | Research and development expenses | $569 | $578 | $1,134 | $1,009 | | Selling, general and administrative expenses | $1,660 | $1,529 | $3,199 | $2,841 | | Total | $2,336 | $2,229 | $4,556 | $4,068 | - As of June 30, 2025, there was $11.4 million of unrecognized compensation cost related to unvested restricted stock units (RSUs) to be recognized over a weighted average period of 2.1 years[105] 13. Leases Details operating lease obligations, including a new Burlington facility lease, abandoned Boston facility, and assumed leases by Repligen - In June 2025, the Company entered a new operating lease in Burlington, Massachusetts, for its headquarters and R&D activities, abandoning its Boston facility (see Note 9, Restructuring)[109] - Lease obligations for facilities in North Carolina and Braunschweig, Germany, were assumed by Repligen as part of the Desktop Portfolio sale in March 2025[110] Lease Expense (in thousands) | Lease Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating lease cost | $405 | $473 | $963 | $942 | | Short-term lease cost | $15 | $28 | $41 | $48 | | Variable lease cost | $29 | $42 | $52 | $78 | | Total | $449 | $543 | $1,056 | $1,068 | 14. Commitments and Contingencies Details commitments and contingencies, including royalty arrangements, 401(k) contributions, and RedWave acquisition earnouts of up to 4,000,000 shares - The Company may issue up to 4,000,000 unregistered shares as contingent consideration for the RedWave acquisition, based on revenue targets of $37 million to $45 million from May 2024 through April 2026[120] - The Company contributes to a 401(k) savings plan, matching 100% of the first 3% of employee contributions, capped at $3,500 per year per employee, with contributions of $0.3 million for the six months ended June 30, 2025[117] - The Company is not currently party to any material legal proceedings and has not incurred any material costs from indemnification agreements with officers and directors[121][123] 15. Acquisition Outlines the RedWave Technology acquisition on April 29, 2024, for $69.1 million total consideration, including $45.0 million cash and 1,497,171 shares - The Company acquired RedWave Technology on April 29, 2024, for an initial payment of $45.0 million in cash and 1,497,171 common shares, plus contingent consideration[124] RedWave Acquisition Consideration and Allocation (in thousands) | Category | Amount | | :-------------------------------- | :----- | | Cash paid | $45,000 | | Fair value of common stock shares issued | $8,616 | | Contingent consideration - earnout | $15,500 | | Total consideration transferred | $69,116 | | Developed Technology acquired | $38,080 | | Customer Relationships acquired | $2,500 | - RedWave contributed $3.1 million in revenue during the six months ended June 30, 2024, following its acquisition[127] 16. Segment Reporting Outlines the company's single operating segment structure, with the CEO as CODM, assessing performance based on net income and revenue - The Company operates and is managed as a single operating segment, with its Chief Executive Officer as the chief operating decision maker (CODM)[53][132] Segment Revenue and Expenses (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $13,035 | $11,462 | $24,813 | $18,884 | | Cost of revenues | $6,662 | $5,300 | $12,898 | $8,835 | | Research and development | $4,405 | $3,591 | $8,234 | $6,883 | | Selling, general and administrative | $5,853 | $6,618 | $11,213 | $11,364 | | Net loss from continuing operations | $(12,908) | $(7,573) | $(22,745) | $(13,468) | 17. Subsequent Event Outlines the acquisition of KAF Manufacturing Company on July 1, 2025, for $2.0 million cash, strengthening the FTIR supply chain - On July 1, 2025, the Company acquired KAF Manufacturing Company, Inc. for an initial cash payment of $2.0 million and a contingent obligation of an additional $0.75 million[136] - The acquisition of KAF Manufacturing Company, a precision machining company, is intended to strengthen and secure the Company's supply chain for critical FTIR components[137] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Discusses management's perspective on financial condition, results of operations, global economic impacts, and liquidity, expecting continued operating losses Overview - 908 Devices Inc. develops handheld devices for point-of-need chemical analysis, leveraging mass spectrometry and FTIR technologies for vital health and safety applications[142] - The Desktop Portfolio was sold on March 4, 2025, and is reported as discontinued operations, resulting in a gain on sale[145] - The company incurred net losses from continuing operations of $22.7 million for the six months ended June 30, 2025, and expects to continue incurring losses while focusing on sales growth and R&D[146] Global Economic Conditions - The company is monitoring macroeconomic factors such as inflation, interest rates, challenging capital market conditions, and changes in trade policies, which may impact its business[150][151] - Inflation and increased interest rates could lead to higher costs for raw materials, salaries, and travel expenses, and potentially cause customers to reduce or delay orders[151][152] - Ongoing military conflicts and revised tariffs are also being monitored for potential impacts on European and Middle Eastern customers and supply chains, though no material impact is expected in fiscal 2025 from tariffs[154][155] Factors Affecting Our Performance - Financial performance is primarily driven by device sales, which are expected to grow through expanded sales efforts and enhanced technology/applications[160][161] - Recurring revenue (consumables, accessories, services) accounted for 36% of total revenue for the six months ended June 30, 2025, and is expected to increase as the device installed base expands[163] - Revenue mix and gross margin are influenced by the proportion of device sales versus recurring revenue, and direct sales typically yield higher margins than sales through channel partners[165] Key Business Metrics Product Placements (Units Recognized as Revenue) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Handheld | 164 | 143 | 321 | 196 | Cumulative Product Placements (Number of Devices) | Metric | June 30, 2025 | June 30, 2024 | | :------- | :------------ | :------------ | | Handheld | 3,336 | 2,618 | - The number of product placements varies considerably due to customer type and size, particularly large government customers, leading to expected fluctuations in period-to-period placements[169] Components of Our Results of Operations - Revenue is generated from device sales (63% of total revenue for six months ended June 30, 2025) and recurring revenue from consumables, accessories, and services (36% of total revenue)[171][172] - Cost of revenue includes raw materials, freight, royalties, personnel, and amortization of intangibles for products, and personnel/travel costs for services. Gross profit margin is expected to increase long-term due to economies of scale[178][179][182] - Operating expenses include R&D (essential for long-term competitive position) and Selling, General & Administrative (SG&A) expenses, which are expected to stabilize following the restructuring plan[183][186] - Other income includes interest earned on cash/securities and income from the Transition Services Agreement (TSA). The company has a full valuation allowance against net deferred tax assets due to recurring losses[188][189][191] Results of Operations Comparison of the three months ended June 30, 2025 and 2024 Total revenue increased by $1.6 million (13.7%) to $13.0 million, but operating expenses rose by $6.8 million (46.5%), widening the loss from operations Key Financials (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change Amount | Change % | | :-------------------------------- | :----- | :----- | :------------ | :------- | | Total revenue | $13,035 | $11,462 | $1,573 | 13.7% | | Product revenue | $9,577 | $8,548 | $1,029 | 12% | | Service and contract revenue | $3,458 | $2,914 | $544 | 19% | | Product gross profit | $4,254 | $4,511 | $(257) | (6)% | | Service and contract gross profit | $2,119 | $1,651 | $468 | 28% | | Research and development | $4,405 | $3,591 | $814 | 23% | | Selling, general and administrative | $10,337 | $11,110 | $(773) | (7)% | | Change in fair value of contingent consideration | $6,792 | $— | $6,792 | N/A | | Loss from operations | $(15,161)| $(8,539)| $(6,622) | (77.5)% | - Product revenue increased by 12% due to FTIR products (RedWave acquisition impact), offset by fewer MX908 device sales[198] - The significant increase in operating expenses was primarily driven by a $6.8 million increase in the fair value of contingent consideration, linked to higher FTIR revenue projections and the company's share price[206] Comparison of the six months ended June 30, 2025 and 2024 Total revenue increased by $5.9 million (31.4%) to $24.8 million, but operating expenses rose by $11.9 million (45.4%), widening the loss from operations Key Financials (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change Amount | Change % | | :-------------------------------- | :----- | :----- | :------------ | :------- | | Total revenue | $24,813 | $18,884 | $5,929 | 31.4% | | Product revenue | $18,106 | $13,780 | $4,326 | 31% | | Service and contract revenue | $6,707 | $5,104 | $1,603 | 31% | | Product gross profit | $8,058 | $7,324 | $734 | 10% | | Service and contract gross profit | $3,857 | $2,725 | $1,132 | 42% | | Research and development | $8,234 | $6,883 | $1,351 | 20% | | Selling, general and administrative | $20,576 | $19,316 | $1,260 | 7% | | Change in fair value of contingent consideration | $9,291 | $— | $9,291 | N/A | | Loss from operations | $(26,186)| $(16,150)| $(10,036) | (62.1)% | - Product revenue increased by 31% due to $5.8 million from FTIR products (RedWave acquisition), partially offset by a $1.3 million decrease in AVCAD program product revenue[211] - Selling, general and administrative expenses increased by $1.3 million, partly due to RedWave acquisition-related payroll costs, transaction bonuses, and facility shutdown/moving costs, offset by lower consulting/legal fees[218] Liquidity and Capital Resources - As of June 30, 2025, the company had $118.6 million in cash, cash equivalents, and marketable securities, including proceeds from the Desktop Portfolio divestiture[223] - The company believes existing cash and revenue will fund operating expenses, capital expenditures, and debt service for at least the next 12 months, but future funding may be required[223][224] - The Amended 2022 Revolver provides a $10.0 million revolving line of credit, with financial covenants requiring maintenance of $20.0 million at SVB and specific cash burn thresholds[226][228] Cash Flows Summary of Cash Flows (Six Months Ended June 30, in thousands) | Cash Flow Activity | 2025 | 2024 | | :------------------------------------------ | :----- | :----- | | Cash used in operating activities | $(20,803)| $(22,397)| | Cash provided by (used in) investing activities | $38,726 | $(50,891)| | Cash used in financing activities | $(267) | $(928) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $17,683 | $(74,230)| - Net cash used in operating activities decreased to $20.8 million in 2025 from $22.4 million in 2024, primarily due to noncash income from the Desktop Portfolio sale, partially offset by changes in operating assets and liabilities[233] - Net cash provided by investing activities was $38.7 million in 2025, a significant improvement from a $50.9 million use in 2024, driven by $69.9 million in proceeds from the Desktop Portfolio sale[235] Critical Accounting Policies and Significant Judgments and Estimates - The preparation of financial statements requires management to make estimates and judgments affecting reported amounts, based on historical experience, known trends, and market factors[241] - There were no significant changes to the company's critical accounting policies for the three and six months ended June 30, 2025[242] Recently Issued Accounting Pronouncements - The company qualifies as an 'emerging growth company' and has elected not to opt out of the extended transition period for complying with new or revised accounting standards[61] - The FASB issued ASU No. 2023-09 (Income Taxes) and ASU 2024-03 (Expense Disaggregation Disclosures), which the company is currently assessing for impact[62][64] - The United States Congress passed the 'One Big Beautiful Bill' (OBBB) on July 4, 2025, which includes changes to corporate taxation, and the company is evaluating its financial impact[65] Item 3. Quantitative and Qualitative Disclosures About Market Risk As a smaller reporting company, 908 Devices Inc. is not required to provide quantitative and qualitative disclosures about market risk - The company is a smaller reporting company and is not required to provide quantitative and qualitative disclosures about market risk[244] Item 4. Controls and Procedures Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting - Management concluded that disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025[245] - There were no material changes in internal control over financial reporting during the most recently completed fiscal quarter[246] PART II. OTHER INFORMATION Item 1. Legal Proceedings The company is not currently involved in any material legal proceedings - The Company is not currently party to any material legal proceedings[248] Item 1A. Risk Factors No material changes to risk factors occurred during the three and six months ended June 30, 2025, compared to the 2024 Form 10-K - No material changes to risk factors occurred during the three and six months ended June 30, 2025, compared to those in the 2024 Form 10-K[249] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds There were no unregistered sales of equity securities or use of proceeds to report for the period - No unregistered sales of equity securities or use of proceeds to report[250] Item 3. Defaults Upon Senior Securities There were no defaults upon senior securities to report for the period - No defaults upon senior securities to report[251] Item 4. Mine Safety Disclosures There are no mine safety disclosures to report for the period - No mine safety disclosures to report[252] Item 5. Other Information Outlines Rule 10b5-1 trading plans adopted by the CEO for up to 240,000 shares and the CFO for up to 26,940 shares - CEO Kevin J. Knopp, Ph.D., adopted a Rule 10b5-1 trading plan on May 19, 2025, for the potential sale of up to 240,000 shares of common stock[254] - CFO Joseph H. Griffith IV adopted a Rule 10b5-1 trading plan on June 2, 2025, for the potential sale of up to 26,940 shares, including shares from RSU vesting[255] Item 6. Exhibits Outlines exhibits filed with the Quarterly Report on Form 10-Q, including corporate documents and CEO/CFO certifications - Exhibits include the company's Sixth Amended and Restated Certificate of Incorporation, Amended and Restated By-laws, and certifications from the CEO and CFO[259] - Certifications under 18 U.S.C. Section 1350 (Exhibits 32.1 and 32.2) are not deemed filed with the SEC and are not incorporated by reference into other filings[258] Signatures The report was signed on August 5, 2025, by the Chief Executive Officer and Chief Financial Officer of 908 Devices Inc - The report was signed by Kevin J. Knopp, Ph.D., Chief Executive Officer, and Joseph H. Griffith IV, Chief Financial Officer, on August 5, 2025[263]