908 Devices Inc
For the period ended Sep 30, 2024. Filed Nov 12, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 12, 2024
MASS$10.56+4.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-06.
0001558370-24-010969
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-12.
0001558370-24-015175
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 172 previous paragraphs and 177 current paragraphs.
114 unchanged; 46 reworded; 16 added; 7 removed; 5 previous and 1 current paragraphs rearranged.
Tables are not compared: 39 previous and 39 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
Change in fair value of contingent consideration represents the change in fair value of the contingent consideration obligation included in contingent consideration on the consolidated balance sheets as of the end of each period. Remeasurement of the contingent consideration obligation is done each quarter and the carrying value of the obligation is adjusted to the current fair value through our consolidated statements of comprehensive income (loss).
Current report
Goodwill impairment is the result of the fair value of our single reporting unit being less than its carrying value. The goodwill impairment resulted from sustained decreases in our publicly quoted share price and market capitalization.
Current report
When considering a hypothetical sensitivity analysis to our goodwill assessment in future periods, could a triggering event be identified, a further 5% decline in our stock price with all other inputs being equal could result in an impairment charge of approximately $7 million.
Current report
and a $0.3 million decrease in desktop product revenue, mainly due to the desktop device placement mix for the three months ended September 30, 2024 compared to the three months ended September 30, 2023.
Current report
Product cost of revenue increased by $1.6 million, or 34%, for the three months ended September 30, 2024, compared to the three months ended September 30, 2023. The increase in product cost of revenue was primarily related to an increase in production costs related to the higher product revenues, $0.6 million in higher intangible amortization, $0.6 million in higher manufacturing costs due to favorable manufacturing variances in the comparable prior period, and $0.4 million in higher personnel related costs, partly related to our RedWave acquisition, offset in part by $0.2 million in lower warranty costs.
Current report
Product gross profit decreased by $0.9 million, or 12%, and gross profit margin decreased by eleven percentage points for the three months ended September 30, 2024, as compared to the three months ended September 30, 2023. The decrease in product gross profit was primarily due to the higher intangible amortization resulting in a five percentage point decrease, as well as credits within manufacturing variances during the three months ended September 30, 2023, resulting in a five percentage point decrease.
Current report
Contract cost of revenue increased by less than $0.1 million for the three months ended September 30, 2024, compared to the three months ended September 30, 2023, during which there was no contract cost of revenue.
Current report
Contract gross profit increased by less than $0.1 million for the three months ended September 30, 2024 as compared to the three months ended September 30, 2023, during which there was no contract gross profit.
Current report
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 decline in such key assumptions 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. For the three months ended September 30, 2023, a charge of $0.1 million was recorded to reflect an increase in the value of the contingent consideration liability related to the Trace acquisition.
Current report
As a result of sustained decreases in our publicly quoted share price and market capitalization, a $30.5 million goodwill impairment was recorded for the three months ended September 30, 2024.
Current report
Interest expense for the three months ended September 30, 2023 was a $0.4 million recovery of debt termination fees. We did not recognize any interest expense for the three months ended September 30, 2024.
Current report
Comparison of the nine months ended September 30, 2024 and 2023
Current report
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 decline in such key assumptions resulted in an adjustment to the fair value of the contingent consideration obligation for the nine months ended September 30, 2024 of a credit of $12.1 million that reduced the value of the contingent consideration liability. For the nine months ended September 30, 2023, a charge of $0.3 million was recorded to increase the value of the contingent consideration liability related to the Trace acquisition.
Current report
As a result of sustained decreases in our publicly quoted share price and market capitalization, a $30.5 million goodwill impairment was recorded for the nine months ended September 30, 2024.
Current report
Interest expense
Current report
Benefit for income taxes was $0.2 million for the nine months ended September 30, 2024, relatively unchanged from the nine months ended September 30, 2023.
Removed paragraphs (7)
Previous report
Product cost of revenue decreased by $0.1 million, or 1%, for the three months ended June 30, 2024, compared to the three months ended June 30, 2023. The decrease in product cost of revenue was primarily related to an increase in production
Previous report
resulting in a $0.7 million increase in labor and overhead absorption for the three months ended June 30, 2024, as well as $0.2 million in lower warranty costs, offset in part by $0.4 million in higher intangible amortization and $0.3 million in higher personnel related costs, partly related to our RedWave acquisition.
Previous report
Product gross profit increased by $0.7 million, or 15%, and gross profit margin increased by four percentage points for the three months ended June 30, 2024, as compared to the three months ended June 30, 2023. The increase in product gross profit was primarily due to favorable timing of production and lower warranty costs, but also due to the increase in product revenues.
Previous report
Contract cost of revenue increased by 42% for the three months ended June 30, 2024, compared to the three months ended June 30, 2023. The decrease was primarily due to the level of labor and materials incurred related to our new contract revenue with a commercial entity, compared to the lower costs incurred in our contract during the three months ended June 30, 2023.
Previous report
Comparison of the six months ended June 30, 2024 and 2023
Previous report
to the use of cash with the RedWave acquisition. This decrease was offset in part by higher interest rates on our interest bearing accounts during the six months ended June 30, 2024.
Reworded paragraphs (46)
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 of $24.0 million and $21.6 million for the six months ended June 30, 2024 and 2023, respectively, and incurred net losses of $23.5 million and $21.9 million for those same periods. As of June 30, 2024, we had an accumulated deficit of $194.1 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, including expanding our sales teams as we grow, scaling our manufacturing operations, continuing
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 of $40.8 million and $35.9 million for the nine months ended September 30, 2024 and 2023, respectively, and incurred net losses of $52.8 million and $29.0 million for those same periods. As of September 30, 2024, we had an accumulated deficit of $223.4 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, including expanding our sales teams as we grow, scaling our manufacturing operations,
Previous wording
research and development efforts to develop new products and further enhance our existing products. Further, we expect to incur additional costs associated with operating as a public company. 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
continuing research and development efforts to develop new products and further enhance our existing products. Further, we expect to incur additional costs associated with operating as a public company. 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
In addition, the United States Federal Reserve has raised, and may again raise, interest rates in response to concerns about inflation. Inflation, together with increased interest rates, may cause our customers to reduce or delay orders for our goods and services thereby causing a decrease in or change in timing of sales of our products and services. The impact of future inflation and interest rate fluctuations on the results of our operations cannot be accurately predicted.
Current wording
In addition, while the United States Federal Reserve has recently begun to lower interest rates, it has over the past couple of years raised, and may again raise, interest rates in response to concerns about inflation. Inflation, together with increased interest rates, may cause our customers to reduce or delay orders for our goods and services thereby causing a decrease in or change in timing of sales of our products and services. The impact of future inflation and interest rate fluctuations on the results of our operations cannot be accurately predicted.
Previous wording
We are closely monitoring the ongoing military conflict between Russia and Ukraine, and the ongoing hostilities in Israel and the Gaza Strip. Although we do not directly source any material products or supplies from Russia, Ukraine, Israel or the Gaza Strip, our customers in Europe and the Middle East could be impacted by extended conflicts or an escalation of these conflicts into neighboring countries.
Current wording
We are closely monitoring the ongoing military conflict between Russia and Ukraine, and the ongoing hostilities in Israel, Lebanon, and the Gaza Strip and other locations in the Middle East. Although we do not directly source any material products or supplies from Russia, Ukraine, Israel, Lebanon or the Gaza Strip, our customers in Europe and the Middle East could be impacted by extended conflicts or an escalation of these conflicts into neighboring countries.
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 41% and 39% of total product and service revenue for the six months ended June 30, 2024 and 2023, respectively. Our recurring revenue as a percentage of total product and service 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 39% and 33% of total product and service revenue for the nine months ended September 30, 2024 and 2023, respectively. Our recurring revenue as a percentage of total product and service 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
During the six months ended June 30, 2024 and 2023, our product placements (units recognized as revenue) were as follows:
Current wording
During the nine months ended September 30, 2024 and 2023, 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 59% and 61% of our product and service revenue for the six months ended June 30, 2024 and 2023, respectively. Recurring revenue accounted for 41% and 39% of our product and service revenue for the six months ended June 30, 2024 and 2023, respectively.
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 61% and 67% of our product and service revenue for the nine months ended September 30, 2024 and 2023, respectively. Recurring revenue accounted for 39% and 33% of our product and service revenue for the nine months ended September 30, 2024 and 2023, respectively.
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
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.
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, 2024 and 2023, respectively.
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, 2024 and 2023, respectively.
Previous wording
During the three and six months ended June 30, 2024 and 2023, our revenue was comprised of revenue from the following sources:
Current wording
During the three and nine months ended September 30, 2024 and 2023, our revenue was comprised of revenue from the following sources:
Previous wording
We recognized an income tax benefit of $0.1 million and $0.1 million during the six months ended June 30, 2024 and 2023, respectively. The income tax benefit recognized during the six months ended June 30, 2024 and 2023, primarily resulted from a reduction in the deferred tax liabilities recorded as part of our acquisition of 908 Devices GmbH.
Current wording
We recognized an income tax benefit of $0.2 million and $0.2 million during the nine months ended September 30, 2024 and 2023, respectively. The income tax benefit recognized during the nine months ended September 30, 2024 and 2023, primarily resulted from a reduction in the deferred tax liabilities recorded as part of our acquisition of 908 Devices GmbH.
Previous wording
Product revenue increased by $0.9 million, or 5%, for the six months ended June 30, 2024, compared to the six months ended June 30, 2023. The increase was primarily related to $2.6 million in product revenue from our recently acquired FTIR products and $1.5 million related to component shipments under our subcontract agreement with a commercial entity that holds
Current wording
Product revenue increased by $0.7 million, or 6%, for the three months ended September 30, 2024, compared to the three months ended September 30, 2023. The increase was primarily related to $2.8 million in product revenue from our recently acquired FTIR products and an increase in MX908 device placements, offset in part by a $2.3 million decrease from initial component shipments under our subcontract agreement with a commercial entity that holds a U.S. government prime contract,
Previous wording
Service revenue increased by $1.3 million, or 56%, for the three months ended June 30, 2024, compared to the three months ended June 30, 2023. The increase was primarily related to an increase in handheld service revenues related to extended service contracts for MX908 devices and our recently acquired FTIR products, and to a lesser extent, an increase in handheld training revenue.
Current wording
Service revenue increased by $1.8 million, or 82%, for the three months ended September 30, 2024, compared to the three months ended September 30, 2023. The increase was primarily related to an increase in handheld service revenues related to extended service contracts for MX908 devices and our recently acquired FTIR products, and to a lesser extent, an increase in handheld training revenue.
Previous wording
Service cost of revenue increased by $0.4 million, or 26%, for the three months ended June 30, 2024, compared to the three months ended June 30, 2023. The increase in service cost of revenue was primarily related to a $0.2 million increase in material costs and contract trainers used to support the higher handheld training revenue, but also due to a $0.2 million increase in personnel and other operating costs primarily related to our RedWave acquisition.
Current wording
Service cost of revenue increased by $0.4 million, or 24%, for the three months ended September 30, 2024, compared to the three months ended September 30, 2023. The increase in service cost of revenue was primarily related to a $0.2 million increase in personnel and other operating costs primarily related to our RedWave acquisition as well as other increases across materials, depreciation and stock compensation.
Previous wording
Service gross profit increased by 105% and gross profit margin increased by 12% for the three months ended June 30, 2024, as compared to the three months ended June 30, 2023, 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 369% and gross profit margin increased by 26% for the three months ended September 30, 2024, as compared to the three months ended September 30, 2023, 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
Contract revenue decreased by $0.3 million, or 73%, for the six months ended June 30, 2024, compared to the six months ended June 30, 2023. During the six months ended June 30, 2024 we recognized contract revenue with a new commercial
Current wording
Contract revenue increased by less than $0.1 million for the three months ended September 30, 2024, compared to the three months ended September 30, 2023, during which there was no contract revenue. During the three months ended September 30, 2024 we recognized contract revenue with a new customer.
Previous wording
Our research and development expenses were $12.2 million for the six months ended June 30, 2024, an increase of $1.2 million from research and development expenses of $10.9 million for the six months ended June 30, 2023. The increase was partly due to the increased expenses from the RedWave acquisition and was due primarily to a $0.6 million increase in personnel and related costs, a $0.3 million increase in stock-based compensation, and a $0.4 million increase in depreciation and occupancy related expenses, mainly related to our facility in North Carolina.
Current wording
Our research and development expenses were $6.8 million for the three months ended September 30, 2024, an increase of $1.3 million from research and development expenses of $5.5 million for the three months ended September 30, 2023. The increase was partly due to the increased expenses from the RedWave acquisition and increased spending due primarily to a $0.6 million increase in personnel and related costs, a $0.2 million increase in stock-based compensation, and a $0.4 million increase in project spend related to materials and consulting.
Previous wording
Our selling, general and administrative expenses were $14.6 million for the three months ended June 30, 2024, an increase of $3.4 million from selling, general and administrative expenses of $11.2 million for the three months ended June 30, 2023. The increase was partly due to the increased expenses from the RedWave acquisition and was due primarily to a $2.1 million increase in investment bank, legal and accounting fees primarily related to our acquisition of RedWave, $0.6 million increase in salaries and related costs, a $0.3 million increase in stock-based compensation, a $0.2 million increase in travel and related costs and a $0.2 million increase in marketing and related costs.
Current wording
Our selling, general and administrative expenses were $13.4 million for the three months ended September 30, 2024, an increase of $2.1 million from selling, general and administrative expenses of $11.3 million for the three months ended September 30, 2023. The increase was partly due to the increased expenses from the RedWave acquisition and was due primarily to a $1.1 million increase in salaries and related costs, a $0.3 million increase in stock-based compensation, a $0.3 million increase in consulting expenses costs and a $0.2 million increase in audit and related costs.
Previous wording
Interest income decreased by $0.6 million for the three months ended June 30, 2024 from $1.7 million for the three months ended June 30, 2023. The decrease was due to the lower cash, cash equivalent and marketable securities balance, primarily due to the average balance during the three months ended June 30, 2024, compared to the three months ended June 30, 2023, mainly due to the use of cash with the RedWave acquisition.
Current wording
Interest income decreased by $0.6 million to $0.8 million for the three months ended September 30, 2024 from $1.4 million for the three months ended September 30, 2023. The decrease was due to the lower cash, cash equivalent and marketable securities balance during the three months ended September 30, 2024, compared to the three months ended September 30, 2023, primarily due to the lower average balance due to the use of cash for the RedWave acquisition in April 2024.
Previous wording
Benefit for income taxes was $0.1 million for the three months ended June 30, 2024, relatively unchanged from the three months ended June 30, 2023, and resulted from a reduction in the deferred tax liabilities recorded as part of our acquisition of 908 Devices GmbH.
Current wording
Benefit for income taxes was $0.1 million for the three months ended September 30, 2024, relatively unchanged from the three months ended September 30, 2023.
Previous wording
Thefollowing table summarizes our results of operations for the six months ended June 30, 2024 and 2023:
Current wording
Thefollowing table summarizes our results of operations for the nine months ended September 30, 2024 and 2023:
Previous wording
Product revenue increased by $0.7 million, or 7%, for the three months ended June 30, 2024, compared to the three months ended June 30, 2023. The increase was primarily related to $2.6 million in product revenue from our recently acquired FTIR products, offset in part by a $1.2 million decrease in MX908 related handheld product revenue, mainly due to a decrease in device placements, as well as a $0.7 million decrease in desktop product revenue, mainly due to five fewer desktop device placements for the three months ended June 30, 2024 compared to the three months ended June 30, 2023.
Current wording
Product revenue increased by $1.6 million, or 5%, for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023. The increase was primarily related to $5.4 million in product revenue from our recently acquired FTIR products. This increase was offset in part by a $1.6 million decrease in MX908 related handheld product revenue, mainly due to fewer device placements, a $0.8 million decrease from component shipments under our subcontract agreement with a commercial entity that holds a U.S. government prime contract as well as a $1.4 million decrease in desktop product revenue, mainly due to 12 fewer desktop device placements, for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023.
Previous wording
Product cost of revenue decreased by $0.6 million, or 8%, for the six months ended June 30, 2024, compared to the six months ended June 30, 2023. The decrease in product cost of revenue was primarily related to an increase in production resulting in a $1.3 million increase in labor and overhead absorption and a $0.8 million decrease in materials and supplies consumed in production related activities, for the six months ended June 30, 2024, offset in part by $0.5 million in higher costs related to the higher product volume, $0.4 million in higher amortization of intangibles and $0.6 million in higher personnel related costs.
Current wording
Product cost of revenue increased by $0.9 million, or 7%, for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023. The increase in product cost of revenue was primarily related to an increase in production costs related to the higher product revenues, $1.1 million in higher intangible amortization, $0.8 million in higher personnel related costs, partly related to our RedWave acquisition, and $0.5 in higher manufacturing variances. These increases were offset in part by a $1.1 million increase in labor and overhead absorption related to the timing of production builds in the nine months ended September 30, 2024 and a $0.8 million decrease in materials and supplies consumed in production related activities.
Previous wording
Product gross profit increased by $1.5 million, or 19%, and gross profit margin increased by seven percentage points for the six months ended June 30, 2024, as compared to the six months ended June 30, 2023. The increase in product gross profit was primarily due to favorable timing of production and lower material costs, but also due to favorable channel mix for the six months ended June 30, 2024.
Current wording
Product gross profit increased by $0.6 million, or 4%, and gross profit margin was relatively unchanged for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023. The increase in product gross profit was primarily due to the higher product revenue volume, net of favorable timing of production and lower material costs, offset in part by increases in intangible amortization and other production related costs for the nine months ended September 30, 2024.
Previous wording
Service revenue increased by $1.8 million, or 40%, for the six months ended June 30, 2024, compared to the six months ended June 30, 2023. The increase was primarily related to an increase in handheld service revenues related to extended service contracts for MX908 devices and to lesser extent, our recently acquired FTIR products, as well as an increase in handheld training revenue and handheld service upgrades.
Current wording
Service revenue increased by $3.6 million, or 53%, for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023. The increase was primarily related to an increase in handheld service revenues related to extended service contracts for MX908 devices and to a lesser extent, our recently acquired FTIR products, as well as an increase in handheld training revenue.
Previous wording
Service cost of revenue increased by $0.9 million, or 32%, for the six months ended June 30, 2024, compared to the six months ended June 30, 2023. The increase in service cost of revenue was primarily related to a $0.5 million increase in material costs and contract trainers used to support the higher handheld training revenue, but also due to a $0.4 million increase in personnel and other operating costs, partly related to our RedWave acquisition.
Current wording
Service cost of revenue increased by $1.3 million, or 29%, for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023. The increase in service cost of revenue was primarily related to a $0.5 million increase in material costs and contract trainers used to support the higher handheld training revenue, as well as a $0.4 million increase in personnel and other operating costs, partly related to our RedWave acquisition, and a $0.2 million increase related to stock-based compensation.
Previous wording
Service gross profit increased by 51% , and gross profit margin increased by three percentage points for the six months ended June 30, 2024, as compared to the six months ended June 30, 2023, primarily due to an increase in in service volume related to training and extended service contracts, leveraging our investments in personal and service infrastructure.
Current wording
Service gross profit increased by 102%, and gross profit margin increased by eleven percentage points for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, primarily due to an increase in service volume related to training and extended service contracts, leveraging our investments in personal and service infrastructure.
Previous wording
Contract revenue decreased by less than $0.1 million, or 31%, for the three months ended June 30, 2024, compared to the three months ended June 30, 2023. During the three months ended June 30, 2024 we recognized contract revenue with a new commercial entity. The contract revenue for the three months ended June 30, 2023, was related to activities under our subcontract agreement with a commercial entity that holds a U.S. government prime contract, which was concluded in the second quarter of 2023.
Current wording
Contract revenue decreased by $0.2 million, or 62%, for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023. During the nine months ended September 30, 2024 we recognized contract revenue with two new commercial entities. Contract revenue for the nine months ended September 30, 2023, was related to activities under
Previous wording
entity. Contract revenue for the six months ended June 30, 2023, was related to activities under our subcontract agreement with a commercial entity that holds a U.S. government prime contract, which was concluded in the second quarter of 2023.
Current wording
our subcontract agreement with a commercial entity that holds a U.S. government prime contract, which was concluded in the second quarter of 2023.
Previous wording
Contract cost of revenue decreased by 25% for the six months ended June 30, 2024, compared to the six months ended June 30, 2023. The decrease was primarily due to the lower contract revenue and related costs to perform under the contract during the six months ended June 30, 2024.
Current wording
Contract cost of revenue decreased by 23% for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023. The decrease was primarily due to the lower contract revenue but also impacted by the higher costs to perform under the new contracts during the nine months ended September 30, 2024.
Previous wording
Contract gross profit decreased by $0.2 million for the six months ended June 30, 2024 as compared to the six months ended June 30, 2023, primarily due to the reduced level of funding and the lower gross profit with our new contract compared to our prior arrangement during the six months ended June 30, 2023.
Current wording
Contract gross profit decreased by $0.2 million for the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023, primarily due to the reduced level of funding and the lower gross profit with our new contracts compared to our prior arrangement during the nine months ended September 30, 2023.
Previous wording
Our research and development expenses were $6.4 million for the three months ended June 30, 2024, an increase of $0.9 million from research and development expenses of $5.5 million for the three months ended June 30, 2023. The increase was partly due to the increased expenses from the RedWave acquisition and was due primarily to a $0.3 million increase in personnel and related costs, a $0.2 million increase in stock-based compensation, a $0.1 million increase in project spend related to materials and consulting, and a $0.2 million increase in depreciation and occupancy related expenses, mainly related to our facility in North Carolina.
Current wording
Our research and development expenses were $19.0 million for the nine months ended September 30, 2024, an increase of $2.5 million from research and development expenses of $16.5 million for the nine months ended September 30, 2023. The increase was partly due to the increased expenses from the RedWave acquisition and was due primarily to a $1.1 million increase in personnel and related costs, a $0.5 million increase in stock-based compensation, a $0.4 million increase in project spend related to materials and consulting, and a $0.2 million increase in depreciation and occupancy related expenses, mainly related to our facility in North Carolina.
Previous wording
Our selling, general and administrative expenses were $26.5 million for the six months ended June 30, 2024, an increase of $3.3 million from selling, general and administrative expenses of $23.2 million for the six months ended June 30, 2023. The increase was partly due to the increased expenses from the RedWave acquisition and was due primarily to a $2.5 million increase in banker, legal and accounting fees, mainly related to our acquisition of RedWave, a $0.9 million increase in salaries and related costs, a $0.6 million increase in stock-based compensation and a $0.4 million increase in travel and related costs. These increases were partially offset by a $0.5 million decrease in severance and related costs, a $0.2 million decrease in valuation of contingent consideration, a $0.2 million decrease in third party commissions and a $0.1 million decrease in insurance costs.
Current wording
Our selling, general and administrative expenses were $39.9 million for the nine months ended September 30, 2024, an increase of $5.6 million from selling, general and administrative expenses of $34.3 million for the nine months ended September 30, 2023. The increase was partly due to the increased expenses from the RedWave acquisition and was due primarily to a $2.4 million increase in banker, legal and accounting fees, mainly related to our acquisition of RedWave, a $1.9 million increase in salaries and related costs, a $0.8 million increase in stock-based compensation, a $0.4 million increase in consulting, legal and related costs not related to the acquisition and a $0.4 million increase in travel and related costs. These increases were partially offset by a $0.5 million decrease in severance and related costs and a $0.2 million decrease in insurance costs.
Previous wording
Interest income increased by $0.2 million for the six months ended June 30, 2024 from $2.7 million for the six months ended June 30, 2023. 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, 2024, compared to the six months ended June 30, 2023, partly due
Current wording
Interest income decreased by $0.4 million for the nine months ended September 30, 2024 from $4.2 million for the nine months ended September 30, 2023. The decrease was due to the lower cash, cash equivalent and marketable securities balance, primarily due to the average balance during the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023, partly due to the use of cash with the RedWave acquisition.
Previous wording
Interest expense decreased by $0.6 million for the six months ended June 30, 2024 from $0.6 million for the six months ended June 30, 2023. The decrease was primarily due to costs incurred in March 2023 related to the write-off of deferred financing costs on our 2022 Revolver, which was in default and later amended in August 2023.
Current wording
Interest expense decreased by $0.2 million for the nine months ended September 30, 2024 from $0.2 million for the nine months ended September 30, 2023. The decrease was primarily due to costs incurred in March 2023 related to the write-off of deferred financing costs on our 2022 Revolver, which was in default and later amended in August 2023.
Previous wording
Other expense, net for the six months ended June 30, 2024 did not change materially from the six months ended June 30, 2023.
Current wording
Other expense, net for the nine months ended September 30, 2024 did not change materially from the nine months ended September 30, 2023.
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 with proceeds from an underwritten public offering in November 2021. As of June 30, 2024, we had cash, cash equivalents and marketable securities of $77.4 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, proceeds from our initial public offering in December 2020, and with proceeds from an underwritten public offering in November 2021. As of September 30, 2024, we had cash, cash equivalents and marketable securities of $71.7 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.
Previous wording
payments on the revolving line of credit through November 2, 2025, at which time all outstanding indebtedness would be immediately due and payable. The outstanding principal amount of any advance accrued interest at a floating rate per annum equal to the greater of (i) three and one-half percent (3.50%) and (ii) the “prime rate” as published in The Wall Street Journal for the relevant period minus one-half percent (0.50%). Our obligations under the 2022 Revolver were secured by substantially all of our assets, excluding our intellectual property, which was subject to a negative pledge. The revolving line of credit under the 2022 Revolver was scheduled to terminate on November 2, 2025.
Current wording
The 2022 Revolver provided for a revolving line of credit of up to $35.0 million. We were permitted to make interest-only payments on the revolving line of credit through November 2, 2025, at which time all outstanding indebtedness would be immediately due and payable. The outstanding principal amount of any advance accrued interest at a floating rate per annum equal to the greater of (i) three and one-half percent (3.50%) and (ii) the “prime rate” as published in The Wall Street Journal for the relevant period minus one-half percent (0.50%). Our obligations under the 2022 Revolver were secured by substantially all of our assets, excluding our intellectual property, which was subject to a negative pledge. The revolving line of credit under the 2022 Revolver was scheduled to terminate on November 2, 2025.
Previous wording
The Amended 2022 Revolver also contains certain financial covenants, including a requirement that the Company maintain $20.0 million on account at or through the Lender and that the amount of unrestricted and unencumbered cash minus advances under the Amended 2022 Revolver, is not less than the amount equal to the greater of (i) $10.0 million or (ii) nine (9) months of cash burn. The Amended 2022 Revolver contains customary representations and warranties, as well as certain non-financial covenants, including limitations on, among other things, the Company’s ability to change the principal nature of its business, dispose of the Company’s business or property, engage in any change of control transaction, merge or consolidate with any other entity or to acquire all or substantially all the capital stock or property of another entity, incur additional indebtedness or liens, pay dividends or make other distributions on capital stock, redeem the Company’s capital stock, engage in transactions with affiliates or otherwise encumber the Company’s intellectual property, in each case, subject to customary
Current wording
The Amended 2022 Revolver also contains certain financial covenants, including a requirement that the Company maintain $20.0 million on account at or through the Lender and that the amount of unrestricted and unencumbered cash minus advances under the Amended 2022 Revolver, is not less than the amount equal to the greater of (i) $10.0 million or (ii) nine (9) months of cash burn. The Amended 2022 Revolver contains customary representations and warranties, as well as certain non-financial covenants, including limitations on, among other things, the Company’s ability to change the principal nature of its business, dispose of the Company’s business or property, engage in any change of control transaction, merge or consolidate with any other entity or to acquire all or substantially all the capital stock or property of another entity, incur additional indebtedness or liens, pay dividends or make other distributions on capital stock, redeem the Company’s capital stock, engage in transactions with affiliates or otherwise encumber the Company’s intellectual property, in each case, subject to customary exceptions.
Previous wording
During the six months ended June 30, 2023, net cash used in operating activities was $18.5 million, primarily resulting from our net loss of $21.9 million and net cash used in changes in our operating assets and liabilities of $3.4 million, partially offset by noncash charges of $6.8 million. Net cash used by changes in our operating assets and liabilities for the six months ended June 30, 2023 consisted primarily of a $1.7 million decrease from changes in inventory and a $0.9 million decrease from changes in accounts payable and accrued expenses.
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.
Showing the first 40 of 46 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
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
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
Contract gross profit decreased by $0.1 million for the three months ended June 30, 2024 as compared to the three months ended June 30, 2023, primarily due to the reduced level of funding to cover costs in our new contract compared to our prior arrangement during the three months ended June 30, 2023.
Previous report — wording carried elsewhere
a U.S. government prime contract. These increases were offset in part by a $2.1 million decrease in MX908 related handheld product revenue, mainly due to fewer device placements, as well as a $1.1 million decrease in desktop product revenue, mainly due to 13 fewer desktop device placements, for the six months ended June 30, 2024 compared to the six months ended June 30, 2023.
Previous report — wording carried elsewhere
Benefit for income taxes was $0.1 million for the six months ended June 30, 2024, relatively unchanged from the six months ended June 30, 2023, and resulted from a reduction in the deferred tax liabilities recorded as part of our acquisition of 908 Devices GmbH.
Previous report — wording carried elsewhere
The 2022 Revolver provided for a revolving line of credit of up to $35.0 million. We were permitted to make interest-only
Previous report — wording carried elsewhere
release of the $0.5 million milestone paid in February 2024, partially offset by $0.5 million proceeds from issuance of common stock.