908 Devices Inc.

Previous wording

We have developed an innovative suite of purpose-built handheld devices for point-of-need chemical analysis. Leveraging complementary analytical technologies including our proprietary mass spectrometry, or Mass Spec, and FTIR, an optical spectroscopy technology and analytics and machine learning technologies, we make devices that are significantly smaller and more accessible than conventional laboratory instruments. Our devices are used at the point-of-need to interrogate unknown and invisible materials and provide quick, actionable answers to directly address vital health and safety applications, including the fentanyl and illicit drug crisis, toxic carcinogen exposure, and global security threats.

Current wording

We have developed an innovative suite of purpose-built handheld devices for point-of-need chemical analysis. Leveraging complementary analytical technologies including our proprietary mass spectrometry (“Mass Spec”) and optical spectroscopy, analytics and machine learning technologies, we make devices that are significantly smaller and more accessible than conventional laboratory instruments. Our devices are used at the point-of-need to interrogate unknown and invisible materials and provide quick, actionable answers to directly address vital health and safety applications, including the fentanyl and illicit drug crisis, toxic carcinogen exposure, and global security threats.

Previous wording

Front-line workers rely upon our Mass Spec handheld devices to combat the opioid crisis and detect counterfeit pharmaceuticals and illicit materials in the air or on surfaces at levels 1,000 times below their lethal dose. First responders also utilize our handheld devices to detect and identify thousands of hazardous bulk materials. The term “products” as used in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” refers to the MX908, ThreatID, ProtectIR, XplorIR, VipIR and related devices.

Current wording

Front-line workers rely upon our Mass Spec handheld devices to combat the opioid crisis and detect counterfeit pharmaceuticals and illicit materials in the air or on surfaces at levels 1,000 times below their lethal dose. First responders also utilize our handheld devices to detect and identify thousands of hazardous bulk materials. The term “products” as used in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” refers to the MX908, ThreatID, ProtectIR, XplorIR, VipIR, NIRLab and related devices.

Previous wording

On March 4, 2025, the Company completed the sale of its Desktop Portfolio to Repligen. The Company has determined the sale of the Desktop Portfolio represents a strategic shift that will have a major effect on its business and therefore met the criteria for classification as discontinued operations in the first quarter of 2025. Accordingly, the Desktop Portfolio is reported as discontinued operations in accordance with ASC 205-20,Discontinued Operations. The related assets and liabilities of the Desktop Portfolio are classified as assets and liabilities of discontinued operations in the consolidated balance sheets and the results of operations from the Desktop Portfolio as discontinued operations in the consolidated statements of operations.

Current wording

On March 4, 2025, the Company completed the sale of its Desktop Portfolio to Repligen. The Company has determined the sale of the Desktop Portfolio represents a strategic shift that will have a major effect on its business and therefore met the criteria for classification as discontinued operations in the first quarter of 2025. Accordingly, the Desktop Portfolio is reported

Previous wording

Applicable amounts in prior years have been recast to conform to this discontinued operations presentation. The Company recognized a gain on the sale of the Desktop Portfolio upon closing.

Current wording

as discontinued operations in accordance with ASC 205-20,Discontinued Operations. The related results of operations from the Desktop Portfolio are classified within discontinued operations in the consolidated statements of operations. Applicable amounts in prior years have been recast to conform to this discontinued operations presentation. The Company recognized a gain on the sale of the Desktop Portfolio upon closing.

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 $13.4 million and $11.8 million for the three months ended March 31, 2026 and 2025, respectively, and incurred net losses from continuing operations of $12.0 million and $9.8 million for those same periods. As of March 31, 2026, we had an accumulated deficit of $235.3 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 $29.5 million and $24.8 million for the six months ended June 30, 2026 and 2025, respectively, and incurred net losses from continuing operations of $23.8 million and $22.7 million for those same periods. As of June 30, 2026, we had an accumulated deficit of $247.2 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

We believe that our existing cash and cash equivalents and revenue from product and service will enable us to fund our operating expenses, capital expenditure requirements and debt service payments for at least the next 12 months. We have based this estimate on assumptions that may prove to be wrong, and we could exhaust our available capital resources sooner than we expect. See “Liquidity and Capital Resources.”

Current wording

We believe that our existing cash and cash equivalents, marketable securities and revenue from product and service will enable us to fund our operating expenses, capital expenditure requirements and debt service payments for at least the next 12 months. We have based this estimate on assumptions that may prove to be wrong, and we could exhaust our available capital resources sooner than we expect. See “Liquidity and Capital Resources.”

Previous wording

We are also closely monitoring increases or changes in tariffs on parts and components imported into the U.S., as well as reciprocal tariffs recently implemented by non-U.S. countries where we export our finished products. We do not expect these tariffs to materially impact our business or results of operations in the 2026 fiscal year. Nonetheless, we will continue to review

Current wording

reciprocal tariffs recently implemented by non-U.S. countries where we export our finished products. We do not expect these tariffs to materially impact our business or results of operations in the 2026 fiscal year. Nonetheless, we will continue to review and assess how any current or future tariffs may affect our business.

Previous wording

Our handheld device orders relate to our MX908, ThreatID, ProtectIR, XplorIR and VipIR, as well as components for the Aerosol and Vapor Chemical Agent Detectors, or AVCAD, sold to our channel partner. Historically, our handheld devices have been used by municipal, state, federal and foreign governments and governmental agencies. Our sales process with government customers is often long and involves multiple levels of approvals, testing and, in some cases, trials. Device orders from a government customer are typically large orders and can be impacted by the timing of their capital budgets. As a result, the revenue for our handheld devices can vary significantly from period-to-period and has been and may continue to be concentrated in a small number of customers in any given period.

Current wording

Our handheld device orders relate to our MX908, ThreatID, ProtectIR, XplorIR, VipIR and NIRLab, as well as components for the Aerosol and Vapor Chemical Agent Detectors (“AVCAD”) program. Historically, our handheld devices have been used by municipal, state, federal and foreign governments and governmental agencies. Our sales process with government customers is often long and involves multiple levels of approvals, testing and, in some cases, trials. Device orders from a government customer are typically large orders and can be impacted by the timing of their capital budgets. As a result, the revenue for our handheld devices can vary significantly from period-to-period and has been and may continue to be concentrated in a small number of customers in any given period.

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 30% and 37% of total revenue for the three months ended March 31, 2026 and 2025, 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, software, software subscription and services based on our product offerings, our customer base and our understanding of how our customers use our products. Recurring revenue was 30% and 36% of total revenue for the six months ended June 30, 2026 and 2025, 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

Recurring revenue is primarily from service revenue and accessories. Consumable revenue is mainly related to single-use swab samplers for MX908 to be used in liquid and solid materials analysis, but there are a number of other applications that the MX908 can be used for that do not require consumables. ThreatID, ProtectIR, XplorIR and VipIR do not have consumables.

Current wording

Recurring revenue is primarily from service revenue, accessories andsoftware subscription. Consumable revenue is mainly related to single-use swab samplers for MX908 to be used in liquid and solid materials analysis, but there are a number of other applications that the MX908 can be used for that do not require consumables. ThreatID, ProtectIR, XplorIR, VipIR and NIRLab do not have consumables.

Previous wording

revenue to constitute a larger percentage of total revenue, provided that our customers remain under a service contract. 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, software 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, provided that our customers remain under a service contract. 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.

Previous wording

During the three months ended March 31, 2026 and 2025, our product placements (units recognized as revenue) were as follows:

Current wording

During the three and six months ended June 30, 2026 and 2025, our product placements (units recognized as revenue) were as follows:

Previous wording

The number of product placements vary considerably from period-to-period due to the type and size of our customers and concentrations among larger government customers as described above. We expect continued fluctuations in our period-to-period number of product placements.

Current wording

The number of product placements vary considerably from period-to-period due to the type and size of our customers and concentrations among larger government customers as described above. We expect continued fluctuations in our period-to-

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 70% and 63% of our total revenue for the three months ended March 31, 2026 and 2025, respectively. Recurring revenue accounted for 30% and 37% of our total revenue for the three months ended March 31, 2026 and 2025, respectively. Our current device offerings include MX908, ThreatID, ProtectIR, XplorIR, VipIR and AVCAD components.

Current wording

We generate product and service revenue from the sale of our devices and recurring revenue from the sale of consumables, accessories, software, software subscriptions and services. Device sales accounted for 69% and 63% of our total revenue for the six months ended June 30, 2026 and 2025, respectively. Recurring revenue accounted for 30% and 36% of our total revenue for the six months ended June 30, 2026 and 2025, respectively. Our current device offerings include MX908, ThreatID, ProtectIR, XplorIR, VipIR, NIRLab and AVCAD components.

Previous wording

We sell our devices directly to customers and through channel partners. Each of our device sales drives various streams of recurring revenue comprised of consumable and accessory product sales and service revenue. Our consumables consist primarily of accessories and swabs for MX908.

Current wording

We sell our devices directly to customers and through channel partners. Each of our device sales drives various streams of recurring revenue comprised of consumable, accessory, software, software subscriptions and service revenue. Our consumables consist primarily of accessories and swabs for MX908.

Previous wording

We also offer our customers extended warranty and service plans. Our extended warranty and service plans are offered for periods beyond the standard one-year warranty that all of our customers receive. These extended warranty and service plans generally have fixed fees and terms ranging from one additional year to four additional years. We recognize revenue from the sale of extended warranty and service plans over the respective coverage period, which approximates the service effort provided by us.

Current wording

We also offer our customers extended warranty, service plans and software subscriptions. Our extended warranty and service plans are offered for periods beyond the standard one-year warranty that all of our customers receive. These extended warranty and service plans generally have fixed fees and terms ranging from one additional year to four additional years. We recognize revenue from the sale of extended warranty and service plans over the respective coverage period, which approximates the service effort provided by us. Our software subscription to our proprietary target library and companion software application, which together represent a single combined performance obligation, are recognized over the coverage period.

Previous wording

We expect consumables and service revenue to increase in future periods as our installed base grows and we are able to generate recurring sales.

Current wording

We expect consumables, accessories, software, software subscriptions and service revenue to increase in future periods as our installed base grows and we are able to generate recurring sales.

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 three months ended March 31, 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 two and one customer during the six months ended June 30, 2026 and 2025, respectively.

Previous wording

During the three months ended March 31, 2026 and 2025, our revenue was comprised of revenue from the following sources:

Current wording

During the three and six months ended June 30, 2026 and 2025, our revenue was comprised of revenue from the following sources:

Previous wording

Our product and service revenue is comprised of sales of our devices and related consumables, accessories and service contracts to end-users in the government, pharmaceutical and industrial markets as follows:

Current wording

Our product and service revenue is comprised of sales of our devices and related consumables, accessories, software and service contracts to end-users in the government, pharmaceutical and industrial markets as follows:

Previous wording

We expect that our gross profit margin for product and service will increase over the long term as our sales and production volumes increase and our cost per unit decreases due to efficiencies of scale. We intend to use our design, engineering and manufacturing capabilities to further advance and improve the efficiency of our manufacturing, which we believe will reduce costs and increase our gross margin. We expect that our gross profit margin for contract will remain consistent for our contracts that are cost reimbursement contracts.

Current wording

We expect that our gross profit margin for product and service will increase over the long term as our sales and production volumes increase and our cost per unit decreases due to efficiencies of scale. We intend to use our design, engineering and manufacturing capabilities to further advance and improve the efficiency of our manufacturing, which we believe will reduce

Previous wording

Beginning in the first quarter of 2025, general and administrative expenses also include rent expense and passthrough costs, reimbursable by Repligen, incurred in performing duties under the TSA.

Current wording

Beginning in the first quarter of 2025, general and administrative expenses also include rent expense and passthrough costs, reimbursable by Repligen, incurred in performing duties under the TSA. The TSA was completed in the second quarter of 2026.

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 TSA by and between the Company and Repligen, dated as of March 4, 2025, or the TSA, provided Repligen with access to the Company’s former 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.

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. The services and obligations under the TSA were completed as of June 30, 2026.

Previous wording

We have not recorded any U.S. federal or state income tax benefits for the net operating losses we have incurred in each year or for the research and development tax credits we generated in the United States and have recorded a full valuation

Current wording

We have not recorded any U.S. federal or state income tax benefits for the net operating losses we have incurred in each year or for the research and development tax credits we generated in the United States and have recorded a full valuation allowance against our net deferred assets, as we believe, based upon the weight of available evidence, that it is more likely than not that all of our net operating loss carryforwards and tax credits will not be realized.

Previous wording

Our product revenue is comprised of revenue from sales of devices and related accessories, software and consumables as follows:

Current wording

Our product revenue is comprised of revenue from sales of devices and related consumables, accessories and software as follows:

Previous wording

Product cost of revenue increased by $0.4 million, or 9%, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase in product cost of revenue was primarily related to a $0.7 million increase in shipments and related warranty costs and $0.3 million in personnel related costs related to our acquired precision machining shop in July 2025, offset in part by $0.3 million in lower facility related costs, $0.2 million in reduction in charges for excess and obsolete inventory and a $0.2 million reduction in all other manufacturing costs.

Current wording

Product cost of revenue increased by $1.1 million, or 20%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The increase in product cost of revenue was primarily related to a $1.3 million increase in shipments and related warranty costs and $0.1 million related to an increase in charges for excess and obsolete inventory. These increases were offset in part by $0.2 million in lower facility related costs and a $0.1 million reduction in all other manufacturing costs.

Previous wording

Product gross profit increased by $1.8 million, or 47%, and gross profit margin increased by seven percentage points for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025. The increased product gross profit was primarily due to the higher product revenue volume, a shift in channel mix with less international product sales that are at a lower gross margin, as well as the decreased facility costs related to the shutdown of the Boston facility as of June 30, 2025 and lower operating costs for the three months ended March 31, 2026, which drove the increase in gross profit margin.

Current wording

Product gross profit increased by $2.3 million, or 54%, and gross profit margin increased by seven percentage points for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025. The increased product gross profit was primarily due to the higher product revenue volume, a shift in channel mix with less international product sales that are at a lower gross margin, as well as the decreased facility costs related to the shutdown of the Boston facility as of June 30, 2025 and lower operating costs for the three months ended June 30, 2026, which drove the increase in gross profit margin.

Previous wording

Ourservice and contract revenue is comprised of revenue from sales of extended warranty and service plans and customer training as follows:

Current wording

Ourservice and contract revenue is comprised of revenue from sales of extended warranty and service plans, software subscriptions and customer training as follows:

Previous wording

Service and contract revenue decreased by $0.6 million, or 19%, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The decrease was primarily related to a $0.7 million decrease in extended service contracts for MX908 devices mainly related to a funding-related pause in service coverage by a United States defense customer which began to impact our service revenues in the fourth quarter of 2025. The decrease was offset in part by a $0.2 million increase in service revenue related to our FTIR products. Contract revenue for the three months ended March 31, 2026 was zero compared to $0.1 million in the three months ended March 31, 2025.

Current wording

Service and contract revenue decreased by $0.4 million, or 10%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The decrease was primarily related to a $0.9 million decrease in mass spec service revenue, driven by a $0.7 million decrease in extended service contracts for MX908 devices mainly related to a funding-related pause in service coverage by a United States defense customer which began to impact our service revenues in the fourth quarter of 2025. The decrease was offset in part by a $0.2 million increase in service revenue related to our FTIR products and $0.3 million related to our recently acquired NIRLab service and subscription revenues. Contract revenue for the three months ended June 30, 2026 was $0.1 million compared to less than $0.1 million in the three months ended June 30, 2025.

Previous wording

Service and contract cost of revenue decreased by $0.2 million, or 11%, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. There was a decrease in service cost of revenue of $0.1 million and a decrease of $0.1 million in contract cost of revenue during the three months ended March 31, 2026. The decrease in service cost of revenue was primarily related to a reduction in third party contractors and materials spent on extended service contracts during the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

Current wording

Service and contract cost of revenue decreased less than $0.1 million, or 1%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The decrease in service cost of revenue was primarily related to a reduction in third party contractors and materials spent on extended service contracts during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

Previous wording

Service and contract gross profit decreased by $0.4 million, or 25%, and gross profit margin decreased by four percentage points for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, primarily due to a decrease in service volume related to extended service contracts, resulting in reduced leverage of our investments in personnel and service infrastructure.

Current wording

Service and contract gross profit decreased by $0.3 million, or 16%, and gross profit margin decreased by four percentage points for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, primarily due to a decrease in service volume related to extended service contracts, resulting in reduced leverage of our investments in personnel and service infrastructure.

Previous wording

Our research and development expenses were $3.5 million for the three months ended March 31, 2026, a decrease of $0.4 million from research and development expenses of $3.8 million for the three months ended March 31, 2025. The decrease was primarily due to a $0.4 million reduction in facility costs related to the shutdown of the Boston facility as of June 30, 2025.

Current wording

Our research and development expenses were $3.6 million for the three months ended June 30, 2026, a decrease of $0.8 million from research and development expenses of $4.4 million for the three months ended June 30, 2025. The decrease was primarily due to a $0.3 million reduction in facility costs related to the shutdown of the Boston facility as of June 30, 2025, a

Previous wording

The change in fair value of contingent consideration was $6.4 million for the three months ended March 31, 2026, an increase of $3.9 million, compared to the $2.5 million charge in the three months ended March 31, 2025. The increase in fair value was primarily due to the increase in the Company’s publicly quoted share price during the three months ended March 31, 2026 and to a lesser extent an increase in the projections for FTIR revenue.

Current wording

The change in fair value of contingent consideration was $6.4 million for the three months ended June 30, 2026, a decrease of $0.4 million, compared to the $6.8 million charge in the three months ended June 30, 2025. The change in fair value for the three months ended June 30, 2026, consisted of a $1.3 million decrease related to the RedWave acquisition valuation and a $0.9 million increase related to the NIRLAB acquisition, which was not recorded in the prior comparative period. The increase in fair value for the three months ended June 30, 2026, primarily related to the increase in the Company’s publicly quoted share price and the impact to the NIRLAB contingent consideration, offset in part by a change in the final projections and backlog for FTIR revenues, net of the higher stock price. The increase in fair value for the three months ended June 30, 2025, related to both the increase in the Company’s publicly quoted share price, and due to an increase in the projections for FTIR revenue, including the recent product launch of VipIR.

Previous wording

Interest income increased by $0.1 million for the three months ended March 31, 2026 from $0.8 million for the three months ended March 31, 2025. The increase was due to the higher cash, cash equivalent and marketable securities balances, primarily due to the average balance during the three months ended March 31, 2026, compared to the three months ended March 31, 2025, offset in part by lower interest rates.

Current wording

Interest income decreased by $0.3 million for the three months ended June 30, 2026 from $1.2 million for the three months ended June 30, 2025. The decrease was due to the lower cash, cash equivalent and marketable securities balances, primarily due to the average balance during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

Previous wording

Income from the transition services agreement, net was zero for the three months ended March 31, 2026 compared to $0.4 million for the three months ended March 31, 2025.

Current wording

Income from the transition services agreement, net was zero for the three months ended June 30, 2026 compared to $1.2 million for the three months ended June 30, 2025.

Previous wording

Product revenue increased by $2.2 million, or 26%, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was primarily related to a $1.3 million increase in product revenue from our mass spec products related to higher device shipments in the quarter within our federal and defense and state and local customers. The increase was also related to an increase of $0.9 million related to our FTIR products, driven by our VipIR placements, offset in part by a decrease in international shipments of our ProtectIR product.

Current wording

Product revenue increased by $5.6 million, or 31%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The increase was primarily related to a $3.4 million increase in product revenue from our FTIR products, driven by our VipIR placements, a $2.0 million increase in product revenue from our mass spec products mainly related to higher device shipments within our federal and defense and state and local customers and a $0.2 million increase related to our recently acquired NIRLAB product revenues.

Previous wording

Our selling, general and administrative expenses were $9.9 million for the three months ended March 31, 2026, a decrease of $0.3 million from selling, general and administrative expenses of $10.2 million for the three months ended March 31, 2025. The decrease was due primarily to a $0.6 million charge for transaction bonuses earned in connection with the sale of the Desktop Portfolio in the three months ended March 31, 2025 and a net decrease in all other expenses of $0.2 million, offset in part by $0.4 million in higher legal costs incurred with the NIRLAB acquisition during the three months ended March 31, 2026.

Current wording

Our selling, general and administrative expenses were $21.0 million for the six months ended June 30, 2026, an increase of $0.5 million from selling, general and administrative expenses of $20.6 million for the six months ended June 30, 2025. The increase was due primarily to a $1.1 million increase for legal and accounting transaction expenses related to the NIRLAB acquisition, offset in part by a $0.6 million reduction in facility costs mainly related to the Boston facility shut down and moving costs and a net decrease in all other expenses of $0.1 million.

Previous wording

Other expense, net for the three months ended March 31, 2026 did not change materially from the three months ended March 31, 2025 to the three months ended March 31, 2026.

Current wording

Other expense, net for the six months ended June 30, 2026 did not change materially from the six months ended June 30, 2025 to the six months ended June 30, 2026.

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. As of March 31, 2026, we had cash, cash equivalents and marketable securities of $111.7 million. 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. As of June 30, 2026, we had cash, cash equivalents and marketable securities of $101.5 million. 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 March 5, 2026, the Company entered into the Amended 2026 Revolver by and between the Company, as borrower, and SVB, as lender. The Amended 2026 Revolver provides for a revolving line of credit of up to $20.0 million. The Amended 2026 Revolver supersedes and replaces the Amended 2022 Revolver and its extension upon the execution of the Amended 2026 Revolver. The Company is permitted to make interest-only payments on the revolving line of credit through March 5, 2028, 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) six percent (6.00%) or (ii) the “prime rate” as published in The Wall Street Journal. The Company’s obligations under the Amended 2026 Revolver are secured by substantially all of the Company’s assets, excluding its intellectual property, which is subject to a negative pledge. The Company capitalized $0.1 million of the debt issuance cost upon entering into the Amended 2026 Revolver and no balance has been drawn from the revolving line of credit as of March 31, 2026.

Current wording

On March 5, 2026, the Company entered into the Amended 2026 Revolver by and between the Company, as borrower, and SVB, as lender. The Amended 2026 Revolver provides for a revolving line of credit of up to $20.0 million. The Amended 2026 Revolver supersedes and replaces the Amended 2022 Revolver and its extension upon the execution of the Amended 2026 Revolver. The Company is permitted to make interest-only payments on the revolving line of credit through March 5, 2028, 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) six percent (6.00%) or (ii) the “prime rate” as published in The Wall Street Journal. The Company’s obligations under the Amended 2026 Revolver are secured by substantially all of the Company’s assets, excluding its intellectual property, which is subject to a negative pledge. The Company capitalized $0.1 million of the debt issuance cost upon entering into the Amended 2026 Revolver and no balance is drawn from the revolving line of credit as of June 30, 2026.