MASS 908 Devices Inc

 

 

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): March 5, 2024

 

 

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 March 5, 2024, 908 Devices Inc. (“908 Devices”) announced its financial results for the fourth quarter and fiscal year ended December 31, 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 March 5, 2024
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: March 5, 2024	908 Devices Inc.
	By:	/s/ Michael S. Turner
		Name: Michael S. Turner
		Title: Chief Legal and Administrative Officer

 

 

 

Exhibit 99.1

 

 

 

908 Devices Reports Fourth Quarter and Full Year 2023 Financial Results and Provides 2024 Revenue Outlook

 

Fourth quarter 2023 revenue increased 23% compared to prior year, driven by handheld revenue increasing 57%

 

BOSTON – March 5, 2024 – 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 and full year ended December 31, 2023.

 

"We made solid progress in 2023 towards our objectives. We have continued to see sustained growth of our handheld devices servicing customers in their efforts to combat the ongoing crisis of counterfeit drugs and opioids. For the full year we saw 28% growth in our handheld revenue and consistent year-over-year growth each quarter. Despite near-term headwinds impacting the life science instrumentation and bioprocessing industries, we launched two additional desktop devices in the Process Analytical Technology (PAT) space, positioning us for accelerated growth as conditions improve," said Kevin J. Knopp, CEO and Co-founder. "We remain focused on expanding our market presence, extending our global reach, leveraging our expanded product portfolios, and overall efficient execution and cash management as we march towards scale and profitability."

 

Recent Highlights

 

·

Revenue of $14.4 million for the fourth quarter 2023, increasing 23% compared to the fourth quarter 2022

 

·

Revenue of $50.2 million for the full year 2023, increasing 7% compared to the full year 2022

 

o

Handheld revenue increased 28% compared to full year 2022

 

o

Recurring revenue represented 33% of product and service revenues

 

·

Ended 2023 with $145.7 million in cash, cash equivalents and marketable securities, consuming $28 million in 2023 and an additional $15 million to pay off remaining debt

 

·

Expanded international presence with MX908 handheld devices placed in 56 countries as of December 31, 2023, an additional 11 countries from December 31, 2022

 

·

Announced a collaboration with Cellares, an integrated development and manufacturing company, to adapt our MAVERICK in-line bioprocess analyzer to be compatible with Cellares’ Cell Shuttle system for large-scale cell therapy manufacturing

 

Fourth Quarter 2023 Financial Results

 

Revenue was $14.4 million for the three months ended December 31, 2023, a 23% increase over the prior year period. This was primarily driven by an increase in handheld devices revenue. The installed base grew to 2,853 devices with 139 devices placed during the fourth quarter 2023. Recurring revenue represented 33% of total revenues in the quarter.

 

Gross profit was $7.3 million for the fourth quarter of 2023, compared to $5.9 million for the corresponding prior year period. Gross margin was 51% as compared to 51% for the corresponding prior year period.

 

Operating expenses were $17.0 million for the fourth quarter of 2023, compared to $16.3 million for the corresponding prior year period. This increase was driven by stock-based compensation and an increase in commission expenses related to handheld revenues, offset in part by a reduction in general operating costs.

 

Net loss was $7.4 million for the fourth quarter of 2023, narrowing from $9.8 million for the corresponding prior year period. Net loss per share was $0.23 for the fourth quarter of 2023, compared to a net loss per share of $0.31 for the corresponding prior year period.

 

Full Year 2023 Financial Results

 

Revenue was $50.2 million for the year ended December 31, 2023, a 7% increase over the prior year period. This was primarily driven by a $8.3 million increase in handheld revenues, offset by a $3.0 million decrease in desktop revenues and a $2.0 million decrease in contract revenues.

 

 

Gross profit was $25.3 million for 2023, compared to $26.0 million for the corresponding prior year period. Gross margin was 50% as compared to 56% for the corresponding prior year period.

 

Operating expenses were $68.1 million for 2023, compared to $61.4 million for the corresponding prior year period.

 

Net loss was $36.4 million for 2023, compared to $33.6 million for the corresponding prior year period. Net loss per share was $1.13 for 2023, compared to a net loss per share of $1.07 for the corresponding prior year period.

 

Cash, cash equivalents and marketable securities were $145.7 million as of December 31, 2023 with no debt outstanding.

 

2024 Guidance

 

908 Devices expects full year 2024 revenue to be in the range of $52.0 million to $54.0 million, representing 4% to 8% growth over full year 2023.

 

Webcast Information

 

908 Devices will host a conference call to discuss the fourth quarter and full year 2023 financial results before market open on Tuesday, March 5, 2024 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								Year Ended
		December 31,								December 31,
		2023				2022				2023				2022
Revenue:
Product revenue		$	11,436			$	8,272			$	40,214			$	37,499
Service revenue			2,915				2,129				9,645				6,976
Contract revenue			—				1,242				370				2,377
Total revenue			14,351				11,643				50,229				46,852
Cost of revenue:
Product cost of revenue			5,191				4,501				18,428				16,010
Service cost of revenue			1,885				1,161				6,380				4,420
Contract cost of revenue			—				59				99				399
Total cost of revenue			7,076				5,721				24,907				20,829
Gross profit			7,275				5,922				25,322				26,023
Operating expenses:
Research and development			5,444				4,662				21,904				17,526
Selling, general and administrative			11,544				11,598				46,176				43,879
Total operating expenses			16,988				16,260				68,080				61,405
Loss from operations			(9,713	)			(10,338	)			(42,758	)			(35,382	)
Other income:
Other income, net			2,282				547				6,148				1,819
Loss from operations before income taxes			(7,431	)			(9,791	)			(36,610	)			(33,563	)
Benefit for income taxes			2				—				211				—
Net loss		$	(7,429	)		$	(9,791	)		$	(36,399	)		$	(33,563	)
Net loss per share attributable to common stockholders		$	(0.23	)		$	(0.31	)		$	(1.13	)		$	(1.07	)
Weighted average common shares outstanding			32,440,312				31,749,993				32,239,394				31,492,531

 

 

908 DEVICES INC.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

		December 31,				December 31,
		2023				2022
Assets
Current assets:
Cash, cash equivalents and marketable securities		$	145,682			$	188,422
Accounts receivable, net			8,989				10,033
Inventory			14,938				12,513
Prepaid expenses and other current assets			4,181				4,658
Total current assets			173,790				215,626
Operating lease, right-of-use assets			6,233				3,956
Property and equipment, net			3,342				3,083
Goodwill			10,367				10,050
Intangible, net			7,860				8,488
Other long-term assets			1,389				1,384
Total assets		$	202,981			$	242,587
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses		$	9,904			$	10,244
Deferred revenue			10,629				7,514
Operating lease liabilities			2,016				1,468
Total current liabilities			22,549				19,226
Long-term debt, net of discount and current portion			3,929				15,000
Deferred revenue, net of current portion			8,571				3,040
Other long-term liabilities			2,441				14,722
Total liabilities			37,490				51,988
Total stockholders' equity			165,491				190,599
Total liabilities and stockholders' equity		$	202,981			$	242,587

 

 

v3.24.0.1

Cover	Mar. 05, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Mar. 05, 2024
Entity File Number	001-39815
Entity Registrant Name	908 Devices Inc.
Entity Central Index Key	0001555279
Entity Tax Identification Number	45-4524096
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	645 Summer Street
Entity Address, City or Town	Boston
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02210
City Area Code	857
Local Phone Number	254-1500
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	MASS
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false

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