8-K
908 Devices Inc. (MASS)
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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): August 4, 2021
908 Devices Inc.
(Exact name of registrant as specified in itscharter)
| Delaware | 001-39815 | 45-4524096 |
|---|---|---|
| (State or other jurisdictionof incorporation) | (Commission<br><br> <br>File Number) | (I.R.S. Employer<br><br> <br>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<br> of each class | Trading<br> Symbol(s) | Name<br> 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 August 4, 2021, 908 Devices Inc. (“908 Devices”) announced its financial results for the first quarter ended June 30, 2021. 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 August 4, 2021 |
| 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: August 4, 2021 | 908 Devices Inc. | |
|---|---|---|
| By: | /s/ Kevin J. Knopp | |
| Name: Kevin J. Knopp | ||
| Title: Chief Executive Officer |
Exhibit 99.1
908 Devices Reports Second Quarter 2021 FinancialResults and Raises 2021 Revenue Outlook
Increased 2021 revenue guidance projects 54%annual revenue growth at the midpoint of the range
BOSTON,MA – August 4, 2021 – 908 Devices Inc. (Nasdaq: MASS), a pioneer of purpose-built handheld and desktop mass spec devices for chemical and biomolecular analysis, today reported financial results for the quarter ended June 30, 2021.
“I am incredibly proud of our team’s progress this quarter as we continue to execute on our growth strategy. We have made important strides across our business and are looking forward to continuing this momentum into the second half of the year,” said Kevin J. Knopp, CEO and Co-founder. “We now expect revenue to grow more than 50% this year as we expand our global presence and continue to accelerate customer adoption.”
Recent Highlights
| • | Total revenue for Q2 2021 increased 49% over Q1 2021 and decreased 26% over the prior year period |
|---|---|
| • | Desktop revenue contributed to a third of total revenue for Q2 2021, growing 70% over the prior year period |
| --- | --- |
| • | Increased the installed base to 1,530 devices with 103 devices placed during the second quarter |
| --- | --- |
| • | Broadened international presence with additions of new distribution partners and key hires across the commercial organization |
| --- | --- |
| • | Expanded platform reach in synthetic biology, specifically the cultured meat market, with multiple REBEL orders |
| --- | --- |
| • | Added Marcia Eisenberg, CSO of LabCorp, to our Board of Directors |
| --- | --- |
| • | Bolstered proteomic focus with the appointment of a panel of seven individuals to our Scientific Advisory Board |
| --- | --- |
2021 Guidance
| • | Expected revenue of $40 million to $43 million, representing 49% to 60% growth over full year 2020. This compares to the previously<br>expected revenue range of $38 million to $40 million. |
|---|
Second Quarter 2021 Financial Results
Revenue was $8.3 million for the three months ended June 30, 2021, a 49% increase over the first three months ended March 31, 2021 and a 26% decrease from $11.1 million for the three months ended June 30, 2020. A one-time revenue event in Q2 2020, due to the shipment of 150 MX908 handheld devices for a single customer, is primarily responsible for the year over year decline. Desktop revenue grew 70% year over year and contributed to one-third of total revenue for Q2 2021.
The install base grew to 1,530 placements with 103 devices placed in Q2 2021. The increase in devices was driven primarily by our handhelds which increased 63% over Q1 2021, and our desktops which increased 25% over Q1 2021.
Gross profit was $4.4 million for the second quarter of 2021, compared to $6.4 million for the corresponding prior year period. Product and service gross margin was 53%, as compared to 58% for the corresponding prior year period.
Operating expenses were $11.8 million for the second quarter of 2021, compared to $4.3 million for the corresponding prior year period. This increase was driven by headcount expansion across our business, primarily focused in our commercial organization, a provision to increase our allowance for bad debts, and increased expenses related to operating as a public company.
Net loss was $7.4 million for the second quarter of 2021, compared to net income of $2.1 million for the corresponding prior year period. Net loss per share was $0.27 for the second quarter of 2021, compared to a net income per share of $0.11 for the corresponding prior year period.
Cash and cash equivalents were $141 million as of June 30, 2021. In addition, the Company has approximately $15 million of debt outstanding.
Webcast Information
908 Devices will host a conference call to discuss the second quarter 2021 financial results before market open on Wednesday, August 4, 2021 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 democratizing laboratory mass spectrometry 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 separations, software automation, and machine learning.
Forward Looking Statements
This press release includes “forward looking statements,” including statements relating to the Company’s future revenue and growth. Forward-looking statements 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
908 DEVICES INC.
Condensed Consolidated Statements of Operationsand Comprehensive Loss
(in thousands, except share and per share amounts)
(unaudited)
| Three Months Ended<br> <br>June 30, | Six Months Ended<br> <br>June 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||||||||
| Revenue: | ||||||||||||
| Product and service revenue | $ | 7,915 | $ | 10,378 | $ | 13,272 | $ | 13,017 | ||||
| License and contract revenue | 362 | 750 | 548 | 2,112 | ||||||||
| Total revenue | 8,277 | 11,128 | 13,820 | 15,129 | ||||||||
| Cost of revenue: | ||||||||||||
| Product and service cost of revenue | 3,846 | 4,471 | 6,406 | 6,041 | ||||||||
| License and contract cost of revenue | 52 | 247 | 127 | 580 | ||||||||
| Total cost of revenue | 3,898 | 4,718 | 6,533 | 6,621 | ||||||||
| Gross profit | 4,379 | 6,410 | 7,287 | 8,508 | ||||||||
| Operating expenses: | ||||||||||||
| Research and development | 3,055 | 1,846 | 6,020 | 4,002 | ||||||||
| Selling, general and administrative | 8,779 | 2,436 | 14,532 | 5,142 | ||||||||
| Total operating expenses | 11,834 | 4,282 | 20,552 | 9,144 | ||||||||
| Income (loss) from operations | (7,455 | ) | 2,128 | (13,265 | ) | (636 | ) | |||||
| Other income (expense): | ||||||||||||
| Interest expense | (39 | ) | (246 | ) | (415 | ) | (487 | ) | ||||
| Other income (expense), net | 70 | 213 | 161 | 252 | ||||||||
| Total other income (expense), net | 31 | (33 | ) | (254 | ) | (235 | ) | |||||
| Net income (loss) and comprehensive income (loss) | $ | (7,424 | ) | $ | 2,095 | $ | (13,519 | ) | $ | (871 | ) | |
| Net income (loss) per share attributable to common <br>stockholders | ||||||||||||
| Basic | $ | (0.27 | ) | $ | 0.11 | $ | (0.49 | ) | $ | (0.19 | ) | |
| Diluted | $ | (0.27 | ) | $ | 0.10 | $ | (0.49 | ) | $ | (0.19 | ) | |
| Weighted average common shares outstanding | ||||||||||||
| Basic | 27,335,637 | 4,994,142 | 27,313,125 | 4,993,671 | ||||||||
| Diluted | 27,335,637 | 5,614,136 | 27,313,125 | 4,993,671 |
908 DEVICES INC.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
| June 30, | December 31, | |||
|---|---|---|---|---|
| 2021 | 2020 | |||
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 141,314 | $ | 159,227 |
| Accounts receivable, net | 5,324 | 6,825 | ||
| Unbilled receivables | 154 | 47 | ||
| Inventory | 7,953 | 4,568 | ||
| Prepaid expenses and other current assets | 2,441 | 300 | ||
| Total current assets | 157,186 | 170,967 | ||
| Operating lease, right-of-use assets | 5,752 | 6,287 | ||
| Property and equipment, net | 1,610 | 850 | ||
| Other long-term assets | 1,936 | 723 | ||
| Total assets | $ | 166,484 | $ | 178,827 |
| Liabilities and Stockholders' Equity | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 1,004 | $ | 1,004 |
| Accrued expenses | 4,944 | 5,038 | ||
| Deferred revenue | 3,965 | 3,104 | ||
| Operating lease liabilities | 1,265 | 1,187 | ||
| Current portion of long-term debt | — | 500 | ||
| Total current liabilities | 11,178 | 10,833 | ||
| Long-term debt, net of discount and current portion | 15,000 | 14,332 | ||
| Operating lease liabilities, net of current portion | 5,199 | 5,839 | ||
| Deferred revenue, net of current portion | 8,246 | 8,588 | ||
| Other long-term liabilities | 194 | 194 | ||
| Total liabilities | 39,817 | 39,786 | ||
| Total stockholders' equity | 126,667 | 139,041 | ||
| Total liabilities and stockholders' equity | $ | 166,484 | $ | 178,827 |