908 Devices Inc.

Previous wording

Since our inception, we have incurred significant operating losses. Our ability to generate revenue sufficient to achieve profitability will depend on the successful further development and commercialization of our products. We generated revenue from continuing operations of $24.8 million and $18.9 million for the six months ended June 30, 2025 and 2024, respectively, and incurred net losses of $22.7 million and $13.5 million for those same periods. As of June 30, 2025, we had an accumulated deficit of $212.5 million. We expect to continue to incur net losses as we focus on growing sales of our products in both the United States and international markets, scaling our manufacturing operations, continuing research and development efforts to develop new products and further enhance our existing products. As a result, we may need additional funding for expenses related to our operating activities, including selling, general and administrative expenses and research and development expenses.

Current wording

Since our inception, we have incurred significant operating losses. Our ability to generate revenue sufficient to achieve profitability will depend on the successful further development and commercialization of our products. We generated revenue from continuing operations of $38.8 million and $33.4 million for the nine months ended September 30, 2025 and 2024, respectively, and incurred net losses of $37.7 million and $37.1 million for those same periods. As of September 30, 2025, we had an accumulated deficit of $227.5 million. We expect to continue to incur net losses as we focus on growing sales of our products in both the United States and international markets, scaling our manufacturing operations, continuing research and development efforts to develop new products and further enhance our existing products. As a result, we may need additional funding for expenses related to our operating activities, including selling, general and administrative expenses and research and development expenses.

Previous wording

Because of the numerous risks and uncertainties associated with product development and commercialization, we are unable to accurately predict the timing or amount of increased expenses or when, or if, we will be able to achieve or maintain profitability. Until such time, if ever, as we can generate substantial revenue sufficient to achieve profitability, we expect to finance our operations through a combination of available cash, equity offerings, debt financings and strategic alliances. We may be unable to raise additional funds or enter into such other agreements or arrangements when needed on favorable terms, or at all. If we are unable to raise capital or enter into such agreements as, and when needed, we may have to significantly

Current wording

Because of the numerous risks and uncertainties associated with product development and commercialization, we are unable to accurately predict the timing or amount of increased expenses or when, or if, we will be able to achieve or maintain profitability. Until such time, if ever, as we can generate substantial revenue sufficient to achieve profitability, we expect to finance our operations through a combination of available cash, equity offerings, debt financings and strategic alliances. We may be unable to raise additional funds or enter into such other agreements or arrangements when needed on favorable terms,

Previous wording

delay, scale back or discontinue the further development and commercialization efforts of one or more of our products, or may be forced to reduce or terminate our operations.

Current wording

or at all. If we are unable to raise capital or enter into such agreements as, and when needed, we may have to significantly delay, scale back or discontinue the further development and commercialization efforts of one or more of our products, or may be forced to reduce or terminate our operations.

Previous wording

We regularly assess trends relating to recurring revenue which includes consumables, accessories and services based on our product offerings, our customer base and our understanding of how our customers use our products. Recurring revenue was 36% and 35% of total revenue for the six months ended June 30, 2025 and 2024, respectively. Our recurring revenue as a percentage of total revenue will vary based upon new device placements in the period. As our device installed base expands, recurring revenue on an absolute basis is expected to increase and over time should be an increasingly important contributor to our revenue.

Current wording

We regularly assess trends relating to recurring revenue which includes consumables, accessories and services based on our product offerings, our customer base and our understanding of how our customers use our products. Recurring revenue was 36% and 33% of total revenue for the nine months ended September 30, 2025 and 2024, respectively. Our recurring revenue as a percentage of total revenue will vary based upon new device placements in the period. As our device installed base expands, recurring revenue on an absolute basis is expected to increase and over time should be an increasingly important contributor to our revenue.

Previous wording

Our revenue is derived from sales of our devices, consumables, accessories and services. There will be fluctuations in the mix between devices and recurring from period-to-period. Over time, as our device installed base grows, we expect service revenue to constitute a larger percentage of total revenue. However, the percentage will be subject to fluctuation based upon our handheld sales in a period. In addition, our selling price and, consequently, our margins, are higher for those devices and recurring revenue that we sell directly to customers as compared to those that we sell through channel partners. While we expect the mix of direct sales as compared to sales through channel partners to remain relatively constant in the near term, we may consider increasing our direct sales capabilities in certain geographies based upon identified opportunities.

Current wording

Our revenue is derived from sales of our devices, consumables, accessories and services. There will be fluctuations in the mix between devices and recurring from period-to-period. Over time, as our device installed base grows, we expect service revenue to constitute a larger percentage of total revenue. However, the percentage will be subject to fluctuation based upon our handheld sales in a period. In addition, our selling price and, consequently, our margins, are higher for those devices and recurring revenue that we sell directly to customers as compared to those that we sell through channel partners. While we

Previous wording

During the three and six months ended June 30, 2025 and 2024, our product placements (units recognized as revenue) were as follows:

Current wording

During the three and nine months ended September 30, 2025 and 2024, our product placements (units recognized as revenue) were as follows:

Previous wording

We generate product and service revenue from the sale of our devices and recurring revenue from the sale of consumables, accessories and services. Device sales accounted for 63% and 65% of our total revenue for the six months ended June 30, 2025

Current wording

We generate product and service revenue from the sale of our devices and recurring revenue from the sale of consumables, accessories and services. Device sales accounted for 64% and 67% of our total revenue for the nine months ended September 30, 2025 and 2024, respectively. Recurring revenue accounted for 36% and 33% of our total revenue for the nine months ended September 30, 2025 and 2024, respectively. Our current device offerings include MX908, ThreatID, ProtectIR, XplorIR, VipIR and AVCAD components.

Previous wording

Contract agreements are arrangements whereby we provide engineering services for the development of our technology platform for specific programs or new and expanding applications of our technologies for future commercial endeavors. Our contract agreements are with the U.S. government and commercial entities (who may be contracting with the government). Contracts typically include compensation for labor effort and materials incurred related to the deliverables under the contract. Our contract revenue was related to one customer during the six months ended June 30, 2025.

Current wording

Contract agreements are arrangements whereby we provide engineering services for the development of our technology platform for specific programs or new and expanding applications of our technologies for future commercial endeavors. Our contract agreements are with the U.S. government and commercial entities (who may be contracting with the government). Contracts typically include compensation for labor effort and materials incurred related to the deliverables under the contract. Our contract revenue was related to one customer during the nine months ended September 30, 2025.

Previous wording

During the three and six months ended June 30, 2025 and 2024, our revenue was comprised of revenue from the following sources:

Current wording

During the three and nine months ended September 30, 2025 and 2024, our revenue was comprised of revenue from the following sources:

Previous wording

Income from transition services agreement, net represents service charges provided to Repligen to facilitate the transition of the Desktop Portfolio, net of directly identifiable personnel related costs. The scope of transition services includes the provision of certain manufacturing services, research and development support and certain administrative functions related to the Desktop Portfolio. In addition, the Transition Services Agreement by and between the Company and Repligen, dated as of March 4, 2025, or the TSA, provides Repligen with access to the Company’s facility in Boston, Massachusetts. The services and obligations under the TSA were substantially completed, and access to the Company’s facility was terminated, as of June 30, 2025.

Current wording

Income from transition services agreement, net represents service charges provided to Repligen to facilitate the transition of the Desktop Portfolio, net of directly identifiable personnel related costs. The scope of transition services includes the provision of certain manufacturing services, research and development support and certain administrative functions related to the Desktop Portfolio. In addition, the Transition Services Agreement by and between the Company and Repligen, dated as of March 4, 2025, or the TSA, provides Repligen with access to the Company’s facility in Boston, Massachusetts. The services and obligations under the TSA were substantially completed, and access to the Company’s facility was terminated, as of June 30, 2025. The Company is continuing to provide certain general and administrative functions under the TSA.

Previous wording

occasions. These financings, combined with the purchasing shareholders' subsequent disposition of those shares, may have resulted in a change of control or could result in a change of control in the future upon subsequent disposition. The Company conducted an analysis to determine if historical changes in ownership through March, 2025 would limit or otherwise restrict its ability to utilize these net operating loss and research and development credit carryforwards. As a result of this analysis, the Company does not believe there are any significant limitations on its ability to utilize these carryforwards. However, future changes in ownership after March 2025 could affect the limitation in future years. Any limitation may result in expiration of a portion of the net operating loss or research and development credit carryforwards before utilization.

Current wording

Utilization of the net operating loss and research and development tax credit carryforwards may be subject to a substantial annual limitation under Sections 382 and 383 of the Internal Revenue Code of 1986 due to ownership changes that have occurred previously or that could occur in the future. These ownership changes may limit the amount of carryforwards that can be utilized annually to offset future taxable income. In general, an ownership change, as defined by Section 382, results from transactions increasing the ownership of certain shareholders or public groups in the stock of a corporation by more than 50% over a three-year period. Since its formation, the Company has raised capital through the issuance of capital stock on several occasions. These financings, combined with the purchasing shareholders' subsequent disposition of those shares, may have resulted in a change of control or could result in a change of control in the future upon subsequent disposition. The Company conducted an analysis to determine if historical changes in ownership through March, 2025 would limit or otherwise restrict its ability to utilize these net operating loss and research and development credit carryforwards. As a result of this analysis, the Company does not believe there are any significant limitations on its ability to utilize these carryforwards. However, future changes in ownership after March 2025 could affect the limitation in future years. Any limitation may result in expiration of a portion of the net operating loss or research and development credit carryforwards before utilization.

Previous wording

Product revenue increased by $1.0 million, or 12%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. The increase was primarily related to product revenue from FTIR products, partly due to the impact of ownership for the full quarter in 2025 compared to two months in 2024. This increase was offset by a decrease in MX908 product revenue, mainly related to fewer device sales in the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

Current wording

Product revenue decreased by $0.4 million, or 3%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The decrease was primarily related to a decrease in MX908 product revenue, mainly related to fewer device sales in the three months ended September 30, 2025 compared to the three months ended September 30, 2024. This decrease was offset in part by an increase in product revenue from FTIR products, led by XplorIR, which doubled in placements to sixty devices during the three months ended September 30, 2025.

Previous wording

Product gross profit decreased by $0.3 million, or 6%, and gross profit margin decreased by nine percentage points for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. The decrease in product gross profit was primarily due to the impact of higher costs, including a $0.3 million increase in warranty costs, a $0.2 million increase in intangible amortization, and a $0.2 million increase in severance and retention costs, offset in part by the higher product volume for the three months ended June 30, 2025, which drove the decrease in gross profit margin.

Current wording

Product gross profit decreased by $0.7 million, or 11%, and gross profit margin decreased by five percentage points for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024. The decrease in product gross profit was primarily due to the impact of higher costs, including a $0.7 million increase in personnel related costs, offset in part by reduced spending in facilities, postage and charges for excess and obsolete inventory, as well as lower product volume for the three months ended September 30, 2025, which drove the decrease in gross profit margin.

Previous wording

Service and contract revenue increased by $0.5 million, or 19%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. The increase was primarily related to an increase in service revenues related to extended service contracts for MX908 devices.

Current wording

Service and contract revenue decreased by $0.1 million, or 4%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The decrease was primarily related to a decrease in service revenues related to the number of trainings performed for MX908 devices in the three months ended September 30, 2025 compared to the three months ended September 30, 2024. This decrease was offset in part by an increase in service revenues from service contracts on FTIR devices related to the increasing installed base.

Previous wording

Service and contract cost of revenue increased by $0.5 million, or 20%, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024. The increase in service cost of revenue was primarily related to a $0.5 million increase in personnel related costs.

Current wording

Service and contract cost of revenue decreased by $0.4 million, or 23%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The decrease in service cost of revenue was primarily related to a decrease in contractors performing trainings for our MX908 and material costs incurred for service commitments in the three months ended September 30, 2025.

Previous wording

Service gross profit increased by $0.5 million, or 28%, and gross profit margin increased by four percentage points for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to an increase in service volume related to training and extended service contracts, leveraging our investments in personnel and service infrastructure.

Current wording

Service gross profit increased by $0.3 million, or 18%, and gross profit margin increased by eleven percentage points for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, primarily due to a decrease in service costs incurred for performing trainings and material costs to support extended service contracts.

Previous wording

Our research and development expenses were $8.2 million for the six months ended June 30, 2025, an increase of $1.4 million from research and development expenses of $6.9 million for the six months ended June 30, 2024. The increase was partly due to the increased expenses from the RedWave acquisition and was due primarily to a $0.7 million increase in project expenditure related to materials and consulting, a $0.3 million increase in personnel and related costs, and a $0.3 million increase in severance and retention costs.

Current wording

Our research and development expenses were $3.8 million for the three months ended September 30, 2025, a decrease of $0.4 million from research and development expenses of $4.2 million for the three months ended September 30, 2024. The decrease was due primarily to a $0.2 million decrease in project expenditure related to materials and consulting, and a $0.2 million decrease in facility costs resulting from the impact of the shutdown of the Boston location.

Previous wording

Our selling, general and administrative expenses were $10.3 million for the three months ended June 30, 2025, a decrease of $0.8 million from selling, general and administrative expenses of $11.1 million for the three months ended June 30, 2024. The decrease was due primarily to a $2.0 million decrease in deal costs related to the RedWave acquisition in the prior year, and a $0.2 million decrease in commissions, offset in part by a $0.9 million increase related to facility shut down and moving costs, a $0.4 million increase in payroll and related costs, mainly related to our acquisition of RedWave, and $0.4 million in higher consulting, legal and accounting related costs.

Current wording

Our selling, general and administrative expenses were $9.1 million for the three months ended September 30, 2025, a decrease of $0.6 million from selling, general and administrative expenses of $9.7 million for the three months ended September 30, 2024. The decrease was due primarily to a $0.2 million decrease in payroll and related costs related to reduced headcount and the repatriation of an employee on assignment, a $0.2 million decrease related to consulting, audit and other professional fees, a $0.1 million decrease related to facility costs and additional decreases within marketing, insurance and other operating costs, offset in part by a $0.2 million increase in non-cash stock based compensation.

Previous wording

The fair value of contingent consideration increased by $6.8 million, due to an increase in the projections for FTIR revenue, including the recent product launch of VipIR, and the increase in the Company’s publicly quoted share price during the three months ended June 30, 2025.

Current wording

The key assumptions, such as revenue projection, equity volatility rate of the Company, revenue volatility rate and discount rate are utilized to estimate the fair value of the contingent consideration under Monte Carlo simulation. The fair value of contingent consideration increased by $10.7 million during the three months ended September 30, 2025, due to an increase in the projections for FTIR revenue, including the recent product launch of VipIR, and the increase in the Company’s publicly quoted share price during the three months ended September 30, 2025. The decline in the key assumptions of stock price and forecast resulted in an adjustment to the fair value of the contingent consideration obligation for the three months ended September 30, 2024 of a credit of $12.1 million that reduced the value of our contingent consideration liability for that period.

Previous wording

Income from the transition services agreement, net was $1.2 million for the three months ended June 30, 2025.

Current wording

Income from the transition services agreement, net was $0.4 million for the three months ended September 30, 2025.

Previous wording

Thefollowing table summarizes our results of operations for the six months ended June 30, 2025 and 2024:

Current wording

Thefollowing table summarizes our results of operations for the nine months ended September 30, 2025 and 2024:

Previous wording

Product revenue increased by $4.3 million, or 31%, for the six months ended June 30, 2025, compared to the three months ended June 30, 2024. The increase was primarily related to $5.8 million in product revenue from our FTIR products that were acquired on April 29, 2024. This increase was offset in part by a $1.3 million decrease in program product revenue related to our AVCAD program, pursuant to which we had component shipments under our subcontract agreement with a commercial entity in the six months ended June 30, 2024.

Current wording

Product revenue increased by $4.0 million, or 16%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. The increase was primarily related to a $8.2 million increase product revenue from our FTIR products, partly due to the impact of ownership for the full period in 2025 compared to five months in 2024. This increase was offset in part by lower mass spec product revenues, mainly a decrease in device sales to our United States federal and defense customers, and due to a $1.5 million decrease in program product revenue related to our AVCAD program, pursuant to which we had component shipments under our subcontract agreement with a commercial entity in the nine months ended September 30, 2024.

Previous wording

Product cost of revenue increased by $3.6 million, or 56%, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024. The increase in product cost of revenue was primarily related to an increase in production costs related to the higher product revenues, $0.8 in higher intangible amortization, and $0.9 million in higher personnel related costs, partly related to our RedWave acquisition and $0.3 million related to severance and retention costs.

Current wording

Product cost of revenue increased by $3.9 million, or 34%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. The increase in product cost of revenue was primarily related to an increase in production costs related to the higher product revenues, $1.6 million in higher personnel related costs, partly related to our RedWave and KAF acquisitions, $0.8 million in higher intangible amortization, and $0.4 million related to severance and retention costs.

Previous wording

Product gross profit increased by $0.7 million, or 10%, and gross profit margin decreased by eight percentage points for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. The increase in product gross profit was primarily due to the higher product revenue volume, offset in part by the impact of lower margin international sales, an increase in intangible amortization and higher personnel related costs for the six months ended June 30, 2025, which drove the decrease in gross profit margin.

Current wording

Product gross profit was relatively unchanged, and gross profit margin decreased by seven percentage points for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024. The flat product gross profit was primarily due to the higher product revenue volume, offset by the impact of lower margin international sales, an increase in intangible amortization and higher personnel related costs for the nine months ended September 30, 2025, which drove the decrease in gross profit margin.

Previous wording

Service and contract revenue increased by $1.6 million, or 31%, for the six months ended June 30, 2025, compared to the three months ended June 30, 2024. The increase was primarily related to an increase in handheld service revenues related to extended service contracts for MX908 devices and $0.6 million in service revenue related to our FTIR products. Contract revenue for the six months ended June 30, 2025 was $0.1 million compared to zero in the six months ended June 30, 2024.

Current wording

Service and contract revenue increased by $1.5 million, or 17%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. The increase was primarily related to a $0.8 million increase in handheld service revenues related to trainings and extended service contracts for MX908 devices and an increase in service revenue related to our FTIR products. Contract revenue for the nine months ended September 30, 2025 was $0.1 million compared to less than $0.1 million in the nine months ended September 30, 2024.

Previous wording

Service and contract cost of revenue increased by $0.1 million, or 6%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. The increase in service cost of revenue was primarily related to an increase in personnel related costs.

Current wording

Service and contract cost of revenue increased by $0.1 million, or 1%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. There was an increase in service cost of revenue of $0.4 million related to an increase in personnel related costs which was offset in part by a reduction in third party contractors and materials

Previous wording

Service gross profit increased by $1.1 million, or 42%, and gross profit margin increased by five percentage points for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to an increase in service volume related to training and extended service contracts, leveraging our investments in personnel and service infrastructure.

Current wording

Service gross profit increased by $1.4 million, or 33%, and gross profit margin increased by six percentage points for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, primarily due to an increase in service volume related to training and extended service contracts, leveraging our investments in personnel and service infrastructure.

Previous wording

Our research and development expenses were $4.4 million for the three months ended June 30, 2025, an increase of $0.8 million from research and development expenses of $3.6 million for the three months ended June 30, 2024. The increase was partly due to the increased expenses from the RedWave acquisition and was due primarily to a $0.4 million increase in personnel and related costs, a $0.3 million increase in project expenditure related to materials and consulting, and a $0.2 million increase in severance and retention costs.

Current wording

Our research and development expenses were $12.1 million for the nine months ended September 30, 2025, an increase of $1.0 million from research and development expenses of $11.1 million for the nine months ended September 30, 2024. The increase was partly due to the increased expenses from the RedWave acquisition and was due primarily to a $0.5 million increase in project expenditure related to materials and consulting, a $0.4 million increase in personnel and related costs, and a $0.4 million increase in severance and retention costs, offset in part by a $0.1 million decrease in depreciation and a $0.1 million decrease in facility related costs

Previous wording

Our selling, general and administrative expenses were $20.6 million for the six months ended June 30, 2025, an increase of $1.3 million from selling, general and administrative expenses of $19.3 million for the six months ended June 30, 2024. The increase was partly due to the increased expenses from the RedWave acquisition and was due primarily to a $1.2 million increase in payroll and related costs, mainly related to our acquisition of RedWave, a $0.6 million charge for transaction bonuses earned with the Desktop Portfolio divestiture, a $0.9 million increase related to facility shut down and moving costs, a $0.4 million increase in non-cash stock based compensation and a $0.3 million increase in other expenses including intangible amortization, depreciation and operating expenses, offset in part by $2.2 million in lower consulting, legal and accounting related costs incurred with the RedWave acquisition during the six months ended June 30, 2024.

Current wording

Our selling, general and administrative expenses were $29.7 million for the nine months ended September 30, 2025, an increase of $0.7 million from selling, general and administrative expenses of $29.0 million for the nine months ended September 30, 2024. The increase was due primarily to a $1.1 million increase in payroll and related costs, mainly related to our acquisition of RedWave, a $0.6 million charge for transaction bonuses earned with the Desktop Portfolio divestiture, a $0.9 million increase related to facility shut down and moving costs, and a $0.5 million increase in non-cash stock based compensation, offset in part by $2.2 million in lower consulting, legal and accounting related costs incurred with the RedWave acquisition during the nine months ended September 30, 2024 and a net decrease in all other expenses of $0.2 million.

Previous wording

Interest income decreased by $0.9 million for the six months ended June 30, 2025 from $2.9 million for the six months ended June 30, 2024. The decrease was due to the lower cash, cash equivalent and marketable securities balance, primarily due to the average balance during the six months ended June 30, 2025, compared to the six months ended June 30, 2024.

Current wording

Interest income decreased by $0.6 million for the nine months ended September 30, 2025 from $3.7 million for the nine months ended September 30, 2024. The decrease was due to the lower cash, cash equivalent and marketable securities balances, primarily due to the average balance during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024 and, to a lesser extent, lower interest rates.

Previous wording

Income from the transition services agreement, net was $1.6 million for the six months ended June 30, 2025.

Current wording

Income from the transition services agreement, net was $2.1 million for the nine months ended September 30, 2025.

Previous wording

Other expense, net for the six months ended June 30, 2025 did not change materially from the six months ended June 30, 2024.

Current wording

Other expense, net for the nine months ended September 30, 2025 did not change materially from the nine months ended September 30, 2024.

Previous wording

Since our inception, we have incurred significant operating losses. To date, we have funded our operations primarily with proceeds from sales of redeemable preferred stock, borrowings under loan agreements and revenue from sales of our products and services and contract revenue, proceeds from our initial public offering in December 2020, and proceeds from an underwritten public offering in November 2021 and proceeds from the Desktop Portfolio divesture. As of June 30, 2025, we had cash, cash equivalents and marketable securities of $118.6 million, inclusive of the proceeds from the recent Desktop Portfolio divesture. We believe that our existing cash, cash equivalents and marketable securities will enable us to fund our operating expenses, capital expenditure requirements and debt service payments for at least the next twelve months.

Current wording

Since our inception, we have incurred significant operating losses. To date, we have funded our operations primarily with proceeds from sales of redeemable preferred stock, borrowings under loan agreements and revenue from sales of our products and services and contract revenue, proceeds from our initial public offering in December 2020, and proceeds from an underwritten public offering in November 2021 and proceeds from the Desktop Portfolio divesture. As of September 30, 2025, we had cash, cash equivalents and marketable securities of $112.1 million, inclusive of the proceeds from the recent Desktop Portfolio divesture. We believe that our existing cash, cash equivalents and marketable securities will enable us to fund our operating expenses, capital expenditure requirements and debt service payments for at least the next twelve months.

Previous wording

On August 4, 2023, the Company entered into a Default Waiver and First Amendment to Loan and Security Agreement (the “Amended 2022 Revolver”), by and between, the Company, as borrower, and Silicon Valley Bank, a division of First Citizens Bank, or SVB, as lender. The Amended 2022 Revolver provides for a revolving line of credit of up to $10.0 million. The Company is permitted to make interest-only payments on the revolving line of credit through November 3, 2025, at which time all outstanding indebtedness shall be immediately due and payable. The outstanding principal amount of any advance shall accrue interest at a floating rate per annum equal to the greater of (i) four and one-half percent (4.50%) and (ii) the “prime rate” as published in The Wall Street Journal for the relevant period minus one-half percent (0.50%). The Company’s obligations under the Amended 2022 Revolver are secured by substantially all of the Company’s assets, excluding its intellectual property, which is subject to a negative pledge. The revolving line of credit under the Amended 2022 Revolver terminates on November 3, 2025.

Current wording

On August 4, 2023, the Company entered into a Default Waiver and First Amendment to Loan and Security Agreement (the “Amended 2022 Revolver”), by and between, the Company, as borrower, and Silicon Valley Bank, a division of First Citizens Bank, or SVB, as lender. On September 15, 2025, the Amended 2022 Revolver was extended to February 2, 2026. The Amended 2022 Revolver provides for a revolving line of credit of up to $10.0 million. The Company is permitted to make interest-only payments on the revolving line of credit through February 2, 2026, at which time all outstanding indebtedness shall be immediately due and payable. The outstanding principal amount of any advance shall accrue interest at a floating rate per annum equal to the greater of (i) four and one-half percent (4.50%) and (ii) the “prime rate” as published in The Wall Street Journal for the relevant period minus one-half percent (0.50%). The Company’s obligations under the Amended 2022 Revolver are secured by substantially all of the Company’s assets, excluding its intellectual property, which is subject to a negative pledge.

Previous wording

During the six months ended June 30, 2024, net cash used in operating activities was $22.4 million, primarily resulting from our net loss of $23.5 million and net cash used in changes in our operating assets and liabilities of $6.7 million, partially offset by noncash charges of $7.8 million. Net cash used in changes in our operating assets and liabilities for the six months ended June 30, 2024, consisted primarily of a $3.1 million decrease from changes in inventory, a $1.7 million decrease from changes in deferred revenue, and a $1.4 million decrease from changes in accounts payable and accrued expenses, partially offset by a $0.7 million increase from changes in prepaid expenses and other current assets.

Current wording

the gain on sale of our Desktop Portfolio, net of transaction costs, partially offset by a $20.0 million increase from the change in fair value of contingent consideration. Net cash used in changes in our operating assets and liabilities of $14.5 million consisted primarily of a $5.4 million decrease from changes in accounts payable and accrued expenses, a $5.5 million decrease from changes in inventory and a $2.1 million decrease from changes in deferred revenue, primarily related to assets and liabilities that were divested with our Desktop Portfolio.

Previous wording

During the six months ended June 30, 2025, net cash used in operating activities was $20.8 million, primarily resulting from noncash income of $40.0 million, partially offset by our net income of $30.3 million and net cash used in changes in our operating assets and liabilities of $11.1 million. Noncash charges consisted primarily of a $56.2 million increase from the gain on sale of Desktop Portfolio, net of transaction costs, partially offset by a $9.3 million increase from the change in fair value of contingent consideration. Net cash used in changes in our operating assets and liabilities of $11.1 million consisted primarily of a $5.6 million decrease from changes in accounts payable and accrued expenses, a $5.2 million decrease from changes in inventory and a $3.3 million decrease from changes in prepaid expenses and other current assets, partially offset by a $5.3 million increase from changes in account receivable, net.

Current wording

During the nine months ended September 30, 2024, net cash used in operating activities was $28.0 million, primarily resulting from our net loss of $52.8 million and net cash used in changes in our operating assets and liabilities of $6.3 million, partially offset by noncash charges of $31.0 million. Net cash used in changes in our operating assets and liabilities for the nine months ended September 30, 2024, consisted primarily of a $6.9 million decrease from changes in accounts receivable and a $3.0 million decrease from changes in inventory, partially offset by a $1.7 million increase from changes in deferred revenue and a $1.5 million increase from changes in prepaid expenses and other current assets. Noncash charges consisted primarily of a $30.5 million increase from the goodwill impairment charge, partially offset by a $12.1 million decrease from the change in fair value of contingent consideration.es, partially offset by a $0.7 million increase from changes in prepaid expenses and other current assets.

Previous wording

During the six months ended June 30, 2025, net cash provided by investing activities was $38.7 million, due primarily to $69.9 million of proceeds from the sale of the Desktop Portfolio and $28.5 million of proceeds from the maturity of marketable securities, partially offset by $59.4 million in purchases of marketable securities.

Current wording

During the nine months ended September 30, 2025, net cash provided by investing activities was $43.9 million, due primarily to $69.9 million of proceeds from the sale of the Desktop Portfolio and $31.3 million of proceeds from the maturity of marketable securities, partially offset by $54.3 million in purchases of marketable securities. In addition, we used $2.0 million for the acquisition of KAF.

Previous wording

During the six months ended June 30, 2024, net cash used in investing activities was $50.9 million, due to $44.8 million increase from the acquisition of RedWave and a $30.2 million increase from purchases of marketable securities, partially offset by $24.4 million of proceeds from maturities of marketable securities.

Current wording

During the nine months ended September 30, 2024, net cash used in investing activities was $47.1 million, due to $44.8 million used for the acquisition of RedWave and a $40.9 million increase from purchases of marketable securities, partially offset by $39.0 million in proceeds from maturities of marketable securities.

Previous wording

Cash used in financing activities during the six months ended June 30, 2025 was $0.3 million, consisting primarily of payments for withholding taxes on vested equity awards.

Current wording

Cash used in financing activities during the nine months ended September 30, 2025 was $0.3 million, consisting primarily of payments for withholding taxes on vested equity awards, net of proceeds from issuances of common stock.

Previous wording

Cash used in financing activities during the six months ended June 30, 2024 was $0.9 million, consisting primarily of $1.0 million in payments for withholding taxes on vested equity awards and $0.4 million of contingent consideration related to therelease of the $0.5 million milestone paid in February 2024, partially offset by $0.5 million of proceeds from the issuance of common stock.

Current wording

Cash used in financing activities during the nine months ended September 30, 2024 was $0.9 million, consisting primarily of $1.0 million in payments for withholding taxes on vested equity awards and $0.4 million of contingent consideration related to the release of the $0.5 million milestone paid in February 2024, partially offset by $0.5 million in proceeds from issuances of common stock.