908 Devices(US:MASS)2022-11-13 16:00Financial Performance - The company generated revenue of $35.2 million for the nine months ended September 30, 2022, compared to $26.4 million for the same period in 2021, representing a year-over-year increase of 33.3%[123] - The company incurred net losses of $23.8 million for the nine months ended September 30, 2022, compared to net losses of $18.7 million for the same period in 2021, indicating an increase in losses of 27.3%[123] - Total revenue for the nine months ended September 30, 2022, was $35,209 thousand, an increase of $8,844 thousand, or 33%, compared to $26,365 thousand in 2021[176] - The net loss for the three months ended September 30, 2022, was $6,259,000, compared to a net loss of $5,185,000 in the same period of 2021, reflecting a deterioration of $1,074,000[163] - Net loss for the nine months ended September 30, 2022, was $23,772 thousand, an increase of $5,068 thousand compared to a net loss of $18,704 thousand in 2021[176] Revenue Composition - Consumables and service revenue accounted for 29% of total product and service revenue for the nine months ended September 30, 2022, up from 21% for the same period in 2021[138] - Device sales revenue accounted for 71% of total product and service revenue for the nine months ended September 30, 2022, down from 79% in the same period of 2021[146] - Total product and service revenue rose by $3.2 million, or 26%, to $15,437 thousand for the three months ended September 30, 2022, compared to $12,285 thousand in 2021[165] Expenses - Research and development expenses for the three months ended September 30, 2022, increased to $4,666,000, up 41.3% from $3,302,000 in the same period of 2021[163] - Selling, general and administrative expenses rose to $11,826,000 for the three months ended September 30, 2022, a 34.6% increase from $8,786,000 in the same period of 2021[163] - Research and development expenses increased to $12.9 million for the nine months ended September 30, 2022, up 38% from $9.3 million in the same period of 2021[185] - Selling, general and administrative expenses rose to $32.3 million for the nine months ended September 30, 2022, reflecting a 38% increase from $23.3 million in 2021[187] Cash Flow and Financing - Cash used in operating activities was $15.8 million for the nine months ended September 30, 2022, compared to $19.9 million in the same period of 2021[200] - Net cash used in investing activities was $15.2 million for the nine months ended September 30, 2022, primarily due to the acquisition of Trace for $13.8 million[202] - Cash provided by financing activities was $0.8 million for the nine months ended September 30, 2022, mainly from common stock option exercises[203] - As of September 30, 2022, the company had cash and cash equivalents of $193.7 million, expected to fund operations for at least the next twelve months[190] Acquisitions and Investments - The company completed the acquisition of Trace for a total purchase price of $17.3 million, which includes an initial cash payment of $14.4 million and contingent cash consideration of up to $2.0 million[122] - The company plans to expand its commercial operations and may seek additional funding through various financing methods[197] Market and Economic Conditions - The company is closely monitoring economic uncertainty and rising inflation, which may impact customer orders and overall sales[127] - The company aims to mitigate downward pressure on average selling prices by increasing the value proposition of its devices and consumables[142] Product and Service Metrics - Total product placements for the three months ended September 30, 2022, were 175 units, a decrease of 4.9% from 184 units in the same period of 2021[144] - For the nine months ended September 30, 2022, total product placements increased to 382 units, up 8.2% from 353 units in the same period of 2021[144] - Cumulative product placements as of September 30, 2022, reached 2,317 units, a 35.1% increase from 1,714 units as of September 30, 2021[145] Accounting Policies and Estimates - There were no significant changes to critical accounting policies for the nine months ended September 30, 2022, except as discussed[214] - Recently issued accounting pronouncements that may impact financial position and results of operations are disclosed in the Quarterly Report[215] - The company qualifies as a smaller reporting company and is not required to provide certain market risk disclosures[216]