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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 |
(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 |
| o | Handheld revenue was $11.7 million |
| o | Desktop revenue was $2.5 million |
| o | Recurring 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 | ||||