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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

 

Date of Report (Date of Earliest Event Reported): November 7, 2023

 

 

908 Devices Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware   001-39815   45-4524096

(State or other jurisdiction
of incorporation) 

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.) 

 

645 Summer Street

Boston, MA  02210

(Address of principal executive offices, including zip code)

 

(857) 254-1500
(Registrant’s telephone number, including area code)

 

Not Applicable
(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act: 

 

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, par value $0.001 per share MASS The NASDAQ Global Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 ( §230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company  x

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨

 

 

 

 

 

 

Item 2.02 Results of Operations and Financial Condition.

 

On November 7, 2023, 908 Devices Inc. (“908 Devices”) announced its financial results for the third quarter ended September 30, 2023. A copy of the press release is being furnished as Exhibit 99.1 to this Report on Form 8-K.

 

The information contained in Item 2.02 of this Current Report on Form 8-K is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(d)   Exhibits:

 

Exhibit
No.
  Description
   
99.1   Press release issued by 908 Devices on November 7, 2023
     
104   Cover Page Interactive Data File (embedded within the inline XBRL document)

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: November 7, 2023 908 Devices Inc.
 

  By: /s/ Michael S. Turner
    Name: Michael S. Turner
    Title: Chief Legal and Administrative Officer

 

 

 

Exhibit 99.1

 

 

908 Devices Reports Third Quarter 2023 Financial Results and Narrows 2023 Revenue Outlook

 

BOSTON – November 7, 2023 – 908 Devices Inc. (Nasdaq: MASS), a pioneer of purpose-built handheld and desktop devices for chemical and biochemical analysis, today reported financial results for the quarter ended September 30, 2023.

 

"We are pleased with the step-up in our revenues from the second quarter and the positive growth trend over the past nine months, despite the challenging environment in the life sciences instrumentation and bioprocessing markets," said Kevin J. Knopp, CEO and Co-founder. "Handheld revenue grew 19% year to date and we expect that to further accelerate in the fourth quarter. This underscores the value our handheld devices bring to our customers, aiding them in enhancing public safety during the ongoing crises of counterfeit drugs and opioids. Our expanding range of products and diverse markets are key strengths for 908 Devices, positioning us for success over the near and long term."

 

Third Quarter 2023 Financial Highlights

 

·Revenue of $35.9 million for the first nine months of 2023, increasing 2% compared to first nine months of 2022

 

·Revenue of $14.3 million for the third quarter 2023, decreasing 9% compared to the third quarter 2022

 

oHandheld revenue was $11.7 million

 

oDesktop revenue was $2.5 million

 

oRecurring revenue was $3.6 million

 

·Ended the third quarter 2023 with $148 million in cash, cash equivalents and marketable securities with no debt outstanding, decreasing $5 million compared to prior quarter end

 

Recent Operating Highlights

 

·Launched MAVERICK in September for real-time in-line monitoring of multiple bioprocess parameters

 

·Entered initial production phase of US Department of Defense Aerosol and Vapor Chemical Agent Detector program to produce 122 initial systems, with partner Smiths Detection

 

·Received $10.4 million in orders from the United States Air Force for MX908 devices, Aero accessories, and support and recognized $4.2 million in the third quarter 2023

 

·Announced a collaboration with Terumo Blood and Cell Technologies for integrating our MAVEN on-line analyzer with Terumo BCT’s Quantum Flex cell therapy expansion platform

 

Third Quarter 2023 Financial Results

 

Revenue was $14.3 million for the three months ended September 30, 2023, a 9% decrease over the prior year period. This was primarily driven by a decline in desktop devices and handheld recurring revenue. The installed base grew to 2,714 devices with 124 devices placed during the third quarter 2023.

 

Recurring revenue represented 25% of total revenues in the quarter. Recurring revenue declined $0.9 million to $3.6 million over the prior year period. This was driven by a decline in handheld accessory and consumable revenue, offset in part by growth in service revenue.

 

Gross profit was $7.9 million for the third quarter of 2023, compared to $9.3 million for the corresponding prior year period. Gross margin was 55% as compared to 59% for the corresponding prior year period. The decline in gross margin was largely due to the decrease in revenues as well as higher service costs with training obligations, charges for excess and obsolete inventory, and the higher non-cash charges for intangible amortization and stock-based compensation during the third quarter of 2023.

 

 

 

Operating expenses were $17.0 million for the third quarter of 2023, compared to $16.5 million for the corresponding prior year period. This increase was driven by stock-based compensation and an increase in acquisition related costs for intangible amortization and valuation of contingent milestones, offset in part by a reduction in general operating costs.

 

Net loss was $7.1 million for the third quarter of 2023, compared to $6.3 million for the corresponding prior year period. Net loss per share was $0.22 for the third quarter of 2023, compared to a net loss per share of $0.20 for the corresponding prior year period.

 

Cash, cash equivalents and marketable securities were $148 million as of September 30, 2023.

 

2023 Guidance

 

908 Devices now expects full year 2023 revenue to be in the range of $49 million to $51 million, representing 4% to 9% growth over full year 2022, which compares to its previous expectations of $49 million to $52 million.

 

Webcast Information

 

908 Devices will host a conference call to discuss the third quarter 2023 financial results before market open on Tuesday, November 7, 2023 at 5:30 am Pacific Time / 8:30 am Eastern Time. A webcast of the conference call can be accessed at https://ir.908devices.com/news-events/events. The webcast will be archived and available for replay for at least 90 days after the event.

 

About 908 Devices

 

908 Devices is revolutionizing chemical and biochemical analysis with its simple handheld and desktop devices, addressing critical-to-life applications. The Company’s devices are used at the point-of-need to interrogate unknown and invisible materials and provide quick, actionable answers to directly address some of the most critical problems in life sciences research, bioprocessing, pharma / biopharma, forensics and adjacent markets. The Company is headquartered in the heart of Boston, where it designs and manufactures innovative products that bring together the power of mass spectrometry, microfluidic sampling and separations, software automation, and machine learning.

 

Forward Looking Statements

 

This press release includes “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts are forward-looking statements, including, without limitation, statements regarding the Company’s future revenue and growth. Words such as “may,” “will,” “expect,” “plan,” “anticipate,” “estimate,” “intend” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. These forward-looking statements are based on management’s current expectations and involve known and unknown risks, uncertainties and assumptions which may cause actual results to differ materially from any results expressed or implied by any forward-looking statement, including the risks outlined under “Risk Factors” and elsewhere in the Company’s filings with the Securities and Exchange Commission which are available on the SEC's website at www.sec.gov. Additional information will be made available in our annual and quarterly reports and other filings that we make from time to time with the SEC. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it cannot guarantee future results. The Company has no obligation, and does not undertake any obligation, to update or revise any forward-looking statement made in this press release to reflect changes since the date of this press release, except as may be required by law.

 

Investor Contact:

Carrie Mendivil

IR@908devices.com

 

Media Contact:

Barbara Russo

brusso@908devices.com

 

 

 

908 DEVICES INC.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share amounts)

(unaudited)

 

   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2023   2022   2023   2022 
Revenue:                    
Product revenue  $12,161   $13,541   $28,778   $29,169 
Service revenue   2,136    1,896    6,730    4,905 
Contract revenue       360    370    1,135 
Total revenue   14,297    15,797    35,878    35,209 
Cost of revenue:                    
Product cost of revenue   4,651    5,234    13,237    11,509 
Service cost of revenue   1,777    1,132    4,495    3,259 
Contract cost of revenue       93    99    340 
Total cost of revenue   6,428    6,459    17,831    15,108 
Gross profit   7,869    9,338    18,047    20,101 
Operating expenses:                    
Research and development   5,537    4,666    16,460    12,864 
Selling, general and administrative   11,421    11,826    34,632    32,281 
Total operating expenses   16,958    16,492    51,092    45,145 
Loss from operations   (9,089)   (7,154)   (33,045)   (25,044)
                     
Other income, net   1,909    895    3,866    1,272 
Loss from operations before income taxes   (7,180)   (6,259)   (29,179)   (23,772)
Benefit from income taxes   87        209     
Net loss  $(7,093)  $(6,259)  $(28,970)  $(23,772)
                     
Net loss per share attributable to common stockholders  $(0.22)  $(0.20)  $(0.90)  $(0.76)
Weighted average common shares outstanding   32,345,925    31,606,484    32,171,685    31,441,611 

 

 

 

908 DEVICES INC.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

   September 30,   December 31, 
   2023   2022 
Assets          
Current assets:          
Cash, cash equivalents and marketable securities  $147,897   $188,422 
Accounts receivable, net   12,885    10,033 
Inventory   15,926    12,513 
Prepaid expenses and other current assets   3,119    4,658 
Total current assets   179,827    215,626 
Operating lease, right-of-use assets   6,677    3,956 
Property and equipment, net   2,854    3,083 
Goodwill   9,928    10,050 
Intangible, net   7,742    8,488 
Other long-term assets   1,447    1,384 
Total assets  $208,475   $242,587 
Liabilities and Stockholders' Equity          
Current liabilities:          
Accounts payable and accrued expenses  $9,848   $10,244 
Deferred revenue   10,521    7,514 
Operating lease liabilities   1,953    1,468 
Total current liabilities   22,322    19,226 
Long-term debt, net of discount and current portion       15,000 
Deferred revenue, net of current portion   4,447    3,040 
Other long-term liabilities   11,777    14,722 
Total liabilities   38,546    51,988 
Total stockholders' equity   169,929    190,599 
Total liabilities and stockholders' equity  $208,475   $242,587 

 

 

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