Rapid Micro Biosystems(RPID) - 2025 Q2 - Quarterly Report

FORM 10-Q Filing Information Registrant Information Provides basic identification details of Rapid Micro Biosystems, Inc. as the registrant for the Form 10-Q filing for the quarterly period ended June 30, 2025, including its state of incorporation, principal executive offices, telephone number, and SEC file number, confirming compliance with SEC filing requirements and identifying the company as a non-accelerated filer, smaller reporting company, and emerging growth company - Registrant: Rapid Micro Biosystems, Inc[2] - Filing Period: Quarterly period ended June 30, 2025[2] - SEC File Number: 001-40592[2] Registrant Status | Status | Indication | | :------------------------ | :--------- | | Large accelerated filer | o | | Accelerated filer | o | | Non-accelerated filer | x | | Smaller reporting company | x | | Emerging growth company | x | - Outstanding Shares as of August 8, 2025: Class A common stock: 39,710,799 shares; Class B common stock: 4,499,529 shares[6] TABLE OF CONTENTS FORWARD-LOOKING STATEMENTS Safe Harbor and Identification States that the Quarterly Report on Form 10-Q contains forward-looking statements intended to be covered by safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, identifiable by terms like 'may,' 'will,' 'expects,' and 'plans,' based on current expectations and projections about future events and financial trends - Forward-looking statements are covered by safe harbor provisions of Section 27A of the Securities Act and Section 21E of the Exchange Act[11] - Identifiable by terms such as 'may,' 'will,' 'should,' 'expects,' 'plans,' 'anticipates,' 'could,' 'intends,' 'targets,' 'projects,' 'contemplates,' 'believes,' 'estimates,' 'forecasts,' 'predicts,' 'potential' or 'continue' or their negatives[11] Key Forward-Looking Statements and Risks Forward-looking statements include expectations regarding the Growth Direct platform, future financial results (revenue, gross margin, operating expenses, cash flow), the goal of achieving positive cash flow by end of 2027, impact of new debt facility, funding requirements, customer base expansion, R&D activities, and intellectual property protection, which are subject to known and unknown risks, uncertainties, and important factors, particularly those discussed in the 'Risk Factors' section - Forward-looking statements include business strategy for Growth Direct platform, future results of operations and financial position (revenue, gross margin, operating expenses, positive cash flow), and the goal to achieve positive cash flow by end of 2027[13] - Also covers expected impact of the recently-announced debt facility, future funding requirements, ability to maintain and expand customer base, effectiveness of sales force, anticipated market trends, R&D activities, and intellectual property protection[13] - Caution: Actual results, performance, or achievements may differ materially due to known and unknown risks, uncertainties, and other important factors, including those in Part II, Item 1A, 'Risk Factors'[12] SUMMARY RISK FACTORS Principal Risks and Uncertainties Provides a concise overview of the primary risks and uncertainties affecting the company's business, including significant historical losses and expected future losses, challenges in achieving and maintaining positive cash flow, dependence on the commercial success of the Growth Direct platform, and potential fluctuations in operating results, along with other risks such as the need for additional capital, indebtedness, market competition, new product development complexities, regulatory compliance, inventory management, and intellectual property protection - Incurred significant losses since inception and expects future losses; may not achieve positive cash flow and profitability[16] - Business relies on the commercial success of the Growth Direct platform, which may not be achieved or maintained[16] - Operating results have fluctuated and will continue to fluctuate, making future results difficult to predict[16] - May need to raise additional capital; existing and future indebtedness could adversely affect operations[16] - Challenges include maintaining market position, expanding customer base, timely new product development, managing inventory, and competing successfully[16][21] - Risks also involve potential product liability lawsuits, loss of key management, manufacturing facility damage, reliance on third-party suppliers, and intellectual property protection issues[21] TRADEMARKS Trademark Usage Disclaimer Clarifies that trademarks and trade names in the report are referred to without ® and ™ symbols for convenience, but this should not be interpreted as a waiver of the company's full legal rights to these marks - Trademarks and trade names are used without ® and ™ symbols for convenience[18] - Such references do not indicate a waiver of the company's full rights under applicable law[18] INTERNET POSTING OF INFORMATION Investor Information Access The company routinely posts important investor information in the 'Investors' section of its website, www.rapidmicrobio.com, and encourages investors to consult it regularly, noting that the website content is not incorporated by reference into this Form 10-Q - Important investor information is routinely posted in the 'Investors' section of www.rapidmicrobio.com[20](index=20&type=chunk) - Website content is not incorporated by reference into this Form 10-Q[20] Part I — Financial Information Item 1. Financial Statements Presents the unaudited condensed consolidated financial statements for Rapid Micro Biosystems, Inc., including the balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows, along with detailed notes explaining the company's business, accounting policies, financial instruments, and other relevant financial information for the periods ended June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets The condensed consolidated balance sheets show a decrease in total assets and stockholders' equity from December 31, 2024, to June 30, 2025, primarily driven by a reduction in short-term investments and an increase in accumulated deficit Condensed Consolidated Balance Sheets (Unaudited, In thousands) | Item | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :------------ | :------------------ | | Assets | | | | Cash and cash equivalents | $18,333 | $16,911 | | Short-term investments | $12,922 | $33,821 | | Total current assets | $60,146 | $80,917 | | Total assets | $75,586 | $98,169 | | Liabilities and Stockholders' Equity | | | | Total current liabilities | $16,403 | $17,565 | | Total liabilities | $21,041 | $22,817 | | Accumulated deficit | $(498,395) | $(475,274) | | Total stockholders' equity | $54,545 | $75,352 | - Total assets decreased by $22,583 thousand (23.0%) from December 31, 2024, to June 30, 2025[23] - Total stockholders' equity decreased by $20,807 thousand (27.6%) over the same period, largely due to an increased accumulated deficit[23] Condensed Consolidated Statements of Operations The condensed consolidated statements of operations show an increase in total revenue for both the three and six months ended June 30, 2025, compared to the prior year, while net loss decreased, indicating improved operational efficiency Condensed Consolidated Statements of Operations (Unaudited, In thousands) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Product revenue | $4,802 | $4,537 | $8,903 | $8,250 | | Service revenue | $2,460 | $2,081 | $5,564 | $3,979 | | Total revenue | $7,262 | $6,618 | $14,467 | $12,229 | | Total costs and operating expenses | $19,410 | $19,996 | $38,276 | $39,880 | | Loss from operations | $(12,148) | $(13,378) | $(23,809) | $(27,651) | | Net loss | $(11,858) | $(12,578) | $(23,121) | $(25,900) | | Net loss per share