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 EventReported): May 10, 2022
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 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 May 10, 2022, 908 Devices Inc. (“908Devices”) announced its financial results for the first quarter ended March 31, 2022. 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 “SecuritiesAct”), 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 <br><br>No. | Description |
|---|---|
| 99.1 | Press release issued<br> by 908 Devices on May 10, 2022 |
| 104 | Cover Page Interactive<br> 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: May 10, 2022 | 908 Devices Inc. | |
|---|---|---|
| By: | /s/ Michael S. Turner | |
| Name: Michael S. Turner | ||
| Title: VP, General Counsel |
Exhibit 99.1
908 Devices Reports First Quarter 2022 FinancialResults and
Reiterates 2022 Revenue Outlook
Q1 2022 revenue increases 50% over prior yearwith Desktop revenue in BioPharma growing 68%
BOSTON, MA – May 10, 2022 – 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 March 31, 2022.
“We had a strong start to the year with revenue growing 50% over the prior year period. We made tangible progress against our goals as we continued to enable our customers with rapid chemical and biochemical analysis when and where they need it,” said Kevin J. Knopp, CEO and Co-founder. “From global biopharma sites to prominent local events in our communities, like the Boston Marathon, our devices are being used to provide actionable insights.”
Recent Highlights
| · | Revenue<br> of $8.3 million for the first quarter of 2022, representing 50% increase over the prior year<br> period |
|---|---|
| · | Expanded<br> installed base to 2,018 devices with 83 devices placed during the first quarter |
| --- | --- |
| · | Released<br> updates to our MX908 handheld device, including additional drug targets, Bluetooth capability<br> for iOS devices and technical interface spec for robots, drones, and other third-party systems |
| --- | --- |
| · | Partnered<br> with UK-based CPI biologics center on cell culture media optimization for bioprocessing applications |
| --- | --- |
First Quarter 2022 Financial Results
Revenue was $8.3 million for the three months ended March 31, 2022, a 50% increase over the prior year period. This increase was primarily driven by product revenue from an increase in both handheld and desktop devices. Desktop revenue grew 68% year over year because of both increased device sales and increased recurring revenue.
The installed base grew to 2,018 placements with 83 devices placed in Q1 2022.
Gross profit was $4.1 million for the first quarter of 2022, compared to $2.9 million for the corresponding prior year period. Gross margin was 50%, as compared to 52% for the corresponding prior year period. The decrease in gross margin was expected based upon the investments in personnel and expenses in calendar year 2021 and the first quarter of 2022, offset in part by the increase in device sales and the volume leverage.
Operating expenses were $13.7 million for the first quarter of 2022, compared to $8.7 million for the corresponding prior year period. This increase was driven by headcount expansion across our business, an increase in stock-based compensation and an increase in marketing activities and travel expenses.
Net loss was $9.4 million for the first quarter of 2022, compared to a net loss of $6.1 million for the corresponding prior year period. Net loss per share was $0.30 for the first quarter of 2022, compared to a net loss per share of $0.22 for the corresponding prior year period.
Cash and cash equivalents were $223 million as of March 31, 2021. In addition, the Company has approximately $15 million of debt outstanding.
2022 Guidance
908 Devices continues to expect full year 2022 revenue to be in the range of $52 million to $55 million, representing 23% to 30% growth over full year 2021.
Webcast Information
908 Devices will host a conference call to discuss the first quarter 2022 financial results before market open on Tuesday, May 10, 2022 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” 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
908 DEVICES INC.
Condensed Consolidated Statements of Operationsand Comprehensive Loss
(in thousands, except share and per share amounts)
(unaudited)
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| March 31, | ||||||
| 2022 | 2021 | |||||
| Revenue: | ||||||
| Product and service revenue | $ | 8,029 | $ | 5,357 | ||
| License and contract revenue | 277 | 186 | ||||
| Total revenue | 8,306 | 5,543 | ||||
| Cost of revenue: | ||||||
| Product and service cost of revenue | 4,041 | 2,560 | ||||
| License and contract cost of revenue | 136 | 75 | ||||
| Total cost of revenue | 4,177 | 2,635 | ||||
| Gross profit | 4,129 | 2,908 | ||||
| Operating expenses: | ||||||
| Research and development | 3,905 | 2,965 | ||||
| Selling, general and administrative | 9,745 | 5,753 | ||||
| Total operating expenses | 13,650 | 8,718 | ||||
| Loss from operations | (9,521 | ) | (5,810 | ) | ||
| Other income (expense): | ||||||
| Interest expense | (20 | ) | (376 | ) | ||
| Other income, net | 126 | 91 | ||||
| Total other income (expense), net | 106 | (285 | ) | |||
| Net loss and comprehensive loss | $ | (9,415 | ) | $ | (6,095 | ) |
| Net loss per share attributable to common stockholders | $ | (0.30 | ) | $ | (0.22 | ) |
| Weighted average common shares outstanding | 31,210,567 | 27,290,364 |
908 DEVICES INC.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
| March 31, | December 31, | |||
|---|---|---|---|---|
| 2022 | 2021 | |||
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 223,120 | $ | 224,073 |
| Accounts receivable, net | 6,323 | 16,375 | ||
| Inventory | 9,632 | 7,918 | ||
| Prepaid expenses and other current assets | 3,908 | 4,527 | ||
| Total current assets | 242,983 | 252,893 | ||
| Operating lease, right-of-use assets | 4,886 | 5,182 | ||
| Property and equipment, net | 2,177 | 1,603 | ||
| Other long-term assets | 1,180 | 1,228 | ||
| Total assets | $ | 251,226 | $ | 260,906 |
| Liabilities and Stockholders' Equity | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 2,162 | $ | 1,371 |
| Accrued expenses | 4,350 | 6,961 | ||
| Deferred revenue | 5,779 | 5,160 | ||
| Operating lease liabilities | 1,373 | 1,344 | ||
| Total current liabilities | 13,664 | 14,836 | ||
| Long-term debt, net of discount and current portion | 15,000 | 15,000 | ||
| Operating lease liabilities, net of current portion | 4,156 | 4,508 | ||
| Deferred revenue, net of current portion | 11,604 | 11,958 | ||
| Total liabilities | 44,424 | 46,302 | ||
| Total stockholders' equity | 206,802 | 214,604 | ||
| Total liabilities and stockholders' equity | $ | 251,226 | $ | 260,906 |