908 Devices Inc.

Previous wording

Front-line workers rely upon our 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 and related devices.

Current wording

Front-line workers rely upon our 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.

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 March 31, 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. 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

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. 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 $11.8 million and $7.4 million for the three months ended March 31, 2025 and 2024, respectively, and incurred net losses of $9.8 million and $5.9 million for those same periods. As of March 31, 2025, we had an accumulated deficit of $199.2 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.

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 $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.

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 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

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

Previous 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.

Current wording

We are closely monitoring the ongoing military conflict between Russia and Ukraine, and the ongoing hostilities in Israel, Iran, 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, Iran 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

Our handheld device orders relate to our MX908, ThreatID, ProtectIR, and XplorIR, 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

Current 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.

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 37% and 38% of total revenue for the three months ended March 31, 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 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.

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, and XplorIR do not have consumables.

Current 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.

Previous wording

We regularly review the number of product placements and cumulative product placement as key metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate financial projections, and make strategic

Current wording

We regularly review the number of product placements and cumulative product placement as key metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate financial projections, and make strategic decisions. We believe that these metrics are representative of our current business; however, we anticipate these will change or may be substituted for additional or different metrics as our business grows.

Previous wording

During the three months ended March 31, 2025 and 2024, our product placements (units recognized as revenue) were as follows:

Current wording

During the three and six months ended June 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 62% of our total revenue for the three months ended March 31, 2025 and 2024, respectively. Recurring revenue accounted for 37% and 38% of our total revenue for the three months ended March 31, 2025 and 2024, 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 63% and 65% of our total revenue for the six months ended June 30, 2025

Previous wording

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 one customer during the six months ended June 30, 2025.

Previous wording

During the three months ended March 31, 2025 and 2024, our revenue was comprised of revenue from the following sources:

Current wording

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

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

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 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.

Previous wording

Beginning in the first quarter of 2025, general and administrative expenses also include labor 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.

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 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

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.

Previous wording

Other income (expense), net consists of miscellaneous other income and expense unrelated to our core operations, interest expense associated with the amortization of deferred financing costs and debt discounts associated with our loan and security agreements and the expenses incurred for certain labor and other passthrough costs of the TSA that are not related to continuing operations and exclusivity related to the support of the TSA.

Current wording

Other income (expense), net consists of miscellaneous other income and expense unrelated to our core operations, interest expense associated with the amortization of deferred financing costs and debt discounts associated with our loan and security agreements.

Previous 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 31, 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

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 cost of revenue increased by $2.3 million, or 95%, for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. The increase in product cost of revenue was primarily related to an increase in production costs related to the higher product revenues, $0.6 in higher intangible amortization, and $0.5 million in higher personnel related costs, partly related to our RedWave acquisition of CAM2 Technologies, LLC (d/b/a RedWave Technology), or RedWave.

Current wording

Product cost of revenue increased by $1.3 million, or 32%, for the three months ended June 30, 2025, compared to the three 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, $0.3 in higher warranty costs, $0.2 million in higher intangible amortization, and $0.5 million in higher personnel related costs, partly related to our RedWave acquisition of CAM2 Technologies, LLC (d/b/a RedWave Technology), or RedWave, offset in part by $0.3 million in higher absorption related to the buildup of devices, prior to the facility move in the second quarter of 2025.

Previous wording

Service and contract cost of revenue increased by $0.4 million, or 35%, for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. The increase in service cost of revenue was primarily related to a $0.3 million increase in personnel related costs and $0.1 million in higher cost of contract.

Current 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.

Previous wording

Service gross profit increased by $0.7 million, or 62%, and gross profit margin increased by four percentage points for the three months ended March 31, 2025, as compared to the three months ended March 31, 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 $0.5 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.

Previous wording

Our research and development expenses were $3.8 million for the three months ended March 31, 2025, an increase of $0.5 million from research and development expenses of $3.3 million for the three months ended March 31, 2024. The increase was partly due to the increased expenses from the RedWave acquisition and was due primarily to a $0.1 million increase in personnel and related costs, a $0.3 million increase in project expenditure related to materials and consulting, and a $0.1 million increase in facility related costs.

Current 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.

Previous wording

The fair value of contingent consideration increased by $2.5 million, primarily due to the increases in the Company’s publicly quoted share price during the three months ended March 31, 2025.

Current 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.

Previous wording

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

Current wording

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

Previous wording

Product revenue increased by $3.3 million, or 63%, for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. The increase was primarily related to $4.1 million in product revenue from our recently acquired Fourier Transform Infrared, or FTIR, products. This increase was offset in part by a $1.4 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 three months ended March 31, 2024.

Current 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.

Previous wording

Product gross profit increased by $1.0 million, or 35%, and gross profit margin decreased by nine percentage points for the three months ended March 31, 2025, as compared to the three months ended March 31, 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 three months ended March 31, 2025, which drove the decrease in gross profit margin.

Current 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.

Previous wording

Service and contract revenue increased by $1.1 million, or 48%, for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. The increase was primarily related to an increase in handheld service revenues related to extended service contracts for MX908 devices and $0.5 million in service revenue related to our recently acquired FTIR products. Contract revenue for the three months ended March 31, 2025 was $0.1 million compared to zero in the three months ended March 31, 2024.

Current 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.

Previous wording

Our selling, general and administrative expenses were $10.2 million for the three months ended March 31, 2025, an increase of $2.0 million from selling, general and administrative expenses of $8.2 million for the three months ended March 31, 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 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 $0.3 million increase in commissions, a $0.2 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 $0.4 million in lower legal and accounting related costs incurred with the RedWave acquisition during the three months ended March 31, 2024.

Current 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.

Previous wording

Interest income decreased by $0.8 million for the three months ended March 31, 2025 from $1.7 million for the three months ended March 31, 2024. 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 March 31, 2025, compared to the three months ended March 31, 2024.

Current 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.

Previous wording

Since our inception, we have incurred significant operating losses. To date, we have funded our operations primarily with proceeds from the Desktop Portfolio divesture, 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. As of March 31, 2025, we had cash, cash equivalents and marketable securities of $124.3 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 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.

Previous wording

Pursuant to the Amended 2022 Revolver, SVB waived filing any legal action or instituting or enforcing any rights and remedies it may have had against the Company in connection with the Company’s failing to maintain all of its operating accounts, depository accounts and excess cash with SVB, as required prior to the effectiveness of the Amended 2022 Revolver. The Company recorded a credit of $0.3 million during the three months ended March 31, 2024 related to the previously recorded early termination penalties.

Current wording

Pursuant to the Amended 2022 Revolver, SVB waived filing any legal action or instituting or enforcing any rights and remedies it may have had against the Company in connection with the Company’s failing to maintain all of its operating accounts, depository accounts and excess cash with SVB, as required prior to the effectiveness of the Amended 2022 Revolver.

Previous wording

During the three months ended March 31, 2025, net cash used in operating activities was $15.0 million, primarily resulting from noncash charges of $50.5 million and net cash used in changes in our operating assets and liabilities of $8.1 million, partially offset by our net income of $43.6 million. Noncash charges consisted primarily of a $56.6 million increase from the gain on sale of Desktop Portfolio, net of transaction costs, partially offset by a $2.5 million increase from the change in fair value of contingent consideration. Net cash used in changes in our operating assets and liabilities of $8.1 million consisted primarily of a $5.6 million decrease from changes in accounts payable and accrued expenses and a $3.3 million decrease from changes in other long-term assets, partially offset by a $4.6 million increase from changes in account receivable, net.

Current 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.

Previous wording

During the three months ended March 31, 2024, net cash used in operating activities was $9.4 million, primarily resulting from our net loss of $10.9 million and net cash used in changes in our operating assets and liabilities of $2.5 million, partially offset by noncash charges of $4.0 million. Net cash used in changes in our operating assets and liabilities for the three months ended March 31, 2024, consisted primarily of a $1.8 million decrease from changes in accounts payable and accrued expenses and a $1.7 million decrease from changes in inventory, partially offset by a $1.5 million increase from changes in accounts receivable.

Current 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.

Previous wording

During the three months ended March 31, 2025, net cash provided by investing activities was $50.3 million, due primarily to $69.9 million of proceeds from the sale of the Desktop Portfolio and $4.9 million of proceeds from the maturity of marketable securities, partially offset by $24.3 million in purchases of marketable securities.

Current 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.

Previous wording

During the three months ended March 31, 2024, net cash used in investing activities was $5.8 million, due to $14.6 million in purchases of marketable securities, partially offset by $9.7 million of proceeds from maturities of marketable securities.

Current 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.

Previous wording

Cash used in financing activities during the three months ended March 31, 2025 was $0.2 million, consisting primarily of payments for withholding taxes on vested equity awards.

Current 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.

Previous wording

Cash used in financing activities during the three months ended March 31, 2024 was $1.3 million, consisting primarily of $0.9 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.

Current 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.

Previous wording

Our condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States, or GAAP. The preparation of our condensed consolidated financial statements and related disclosures requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue, costs and expenses and the disclosure of contingent assets and liabilities in our condensed consolidated financial statements. We base our estimates on historical experience, known trends and events and various other factors that we believe are reasonable under the

Current wording

requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue, costs and expenses and the disclosure of contingent assets and liabilities in our condensed consolidated financial statements. We base our estimates on historical experience, known trends and events and various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. We evaluate our estimates and assumptions on an ongoing basis. Our actual results may differ from these estimates under different assumptions or conditions.

Previous wording

For a further discussion ofour critical accounting policies, please refer to Note 2 to our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q and our 2024 Report on Form 10-K. There were no significant changes to our critical accounting policies for the three months ended March 31, 2025.

Current wording

For a further discussion ofour critical accounting policies, please refer to Note 2 to our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q and our 2024 Report on Form 10-K. There were no significant changes to our critical accounting policies for the three and six months ended June 30, 2025.