908 Devices(MASS) - 2024 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION Condensed Consolidated Financial Statements (Unaudited) This section presents the unaudited condensed consolidated financial statements for 908 Devices Inc. for the period ended March 31, 2024 Condensed Consolidated Balance Sheets As of March 31, 2024, total assets decreased to $189.8 million from $203.0 million at year-end 2023, primarily due to reduced cash and cash equivalents Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $104,599 | $121,041 | | Total current assets | $161,868 | $173,790 | | Total assets | $189,791 | $202,981 | | Liabilities & Equity | | | | Total current liabilities | $19,330 | $22,549 | | Total liabilities | $32,898 | $37,490 | | Total stockholders' equity | $156,893 | $165,491 | | Total liabilities and stockholders' equity | $189,791 | $202,981 | Condensed Consolidated Statements of Operations For Q1 2024, total revenue increased to $10.0 million, and net loss improved to $10.9 million from $12.5 million in Q1 2023 Q1 2024 vs Q1 2023 Statement of Operations (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total revenue | $9,991 | $9,487 | | Gross profit | $5,003 | $4,384 | | Loss from operations | $(12,688) | $(13,017) | | Net loss | $(10,917) | $(12,532) | | Net loss per share (Basic and diluted) | $(0.33) | $(0.39) | Condensed Consolidated Statements of Cash Flows In Q1 2024, net cash used in operating activities improved to $9.4 million, resulting in a $16.4 million net decrease in cash and equivalents Q1 2024 vs Q1 2023 Cash Flow Summary (in thousands) | Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(9,357) | $(10,647) | | Net cash used in investing activities | $(5,780) | $(1,185) | | Net cash used in financing activities | $(1,295) | $(15,381) | | Net decrease in cash, cash equivalents and restricted cash | $(16,442) | $(27,208) | Notes to Unaudited Condensed Consolidated Financial Statements The notes detail accounting policies, revenue disaggregation, and significant subsequent events, including the acquisition of RedWave Technology - The company is a commercial-stage technology firm providing handheld and desktop devices for chemical and biochemical analysis in markets like life sciences, bioprocessing, and forensics[22] Revenue by Stream (in thousands) | Revenue Stream | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Device sales revenue | $5,452 | $5,083 | | Recurring revenue | $4,539 | $4,179 | | Total product and service revenue | $9,991 | $9,262 | | Contract revenue | $— | $225 | | Total revenue | $9,991 | $9,487 | - On April 29, 2024, the company acquired RedWave Technology for an initial payment of $45.0 million in cash and 1,497,171 shares of common stock, with a potential earnout of up to 4,000,000 additional shares based on revenue targets[113][114] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q1 2024 financial performance, highlighting a 5% revenue increase to $10.0 million and sufficient liquidity of $134.2 million - The company develops and sells purpose-built handheld and desktop mass spectrometry devices for point-of-need chemical and biochemical analysis, serving markets such as life sciences, bioprocessing, and forensics[121] Product Placements (Units) | Period | Handheld | Desktop | | :--- | :--- | :--- | | Q1 2024 | 53 | 8 | | Q1 2023 | 62 | 16 | Cumulative Product Placements (Units) | As of | Handheld | Desktop | | :--- | :--- | :--- | | March 31, 2024 | 2,475 | 439 | | March 31, 2023 | 2,082 | 386 | - Total revenue for Q1 2024 increased by $0.5 million (5%) to $10.0 million compared to Q1 2023, driven by a $0.2 million increase in product revenue and a $0.5 million increase in service revenue, offset by a $0.2 million decrease in contract revenue[174][175][178] - The company believes its existing cash, cash equivalents, and marketable securities of $134.2 million as of March 31, 2024, are sufficient to fund operations for at least the next twelve months[191] Quantitative and Qualitative Disclosures About Market Risk As a smaller reporting company, the company is exempt from providing market risk disclosures - As a smaller reporting company, 908 Devices Inc. is exempt from providing quantitative and qualitative disclosures about market risk[215] Controls and Procedures Management concluded that disclosure controls and procedures were effective, with no material changes in internal control over financial reporting - Based on an evaluation as of the end of the quarter, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level[216] - No changes in internal control over financial reporting occurred during the most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[217] PART II. OTHER INFORMATION Legal Proceedings The company is not currently a party to any material legal proceedings - The company is not currently party to any material legal proceedings[219] Risk Factors No material changes to the company's risk factors were reported from the 2023 Form 10-K - There have been no material changes to the company's risk factors from those discussed in the 2023 Form 10-K[220] Unregistered Sales of Equity Securities and Use of Proceeds No unregistered sales of equity securities or use of proceeds were reported during the period - None[221] Defaults Upon Senior Securities No defaults upon senior securities were reported - None[222] Mine Safety Disclosures This item is not applicable to the company - None[223] Other Information No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by directors or executive officers - No directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the quarter ended March 31, 2024[224] Exhibits This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL data List of Exhibits | Exhibit | Description | | :--- | :--- | | 31.1 | CEO Certification (Sarbanes-Oxley Section 302) | | 31.2 | CFO Certification (Sarbanes-Oxley Section 302) | | 32.1 | CEO Certification (Sarbanes-Oxley Section 906) | | 32.2 | CFO Certification (Sarbanes-Oxley Section 906) | | 101 | Inline XBRL Documents | | 104 | Cover Page Data File |