PART I—FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements (Unaudited)
908 DEVICES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and per share amounts)
| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | June 30, | ​ | December 31, |
| ​ | 2023 | 2022 |
| Assets | ​ | ​ | ​ |
| Current assets: | ​ | ​ | ​ |
| Cash and cash equivalents | ​ | $ | 132,996 | ​ | $ | 188,422 |
| Marketable securities | ​ | ​ | 19,691 | ​ | ​ | — |
| Accounts receivable, net of allowance for credit losses of $ 133 and $ 25 at June 30, 2023 and December 31, 2022 | ​ | 10,308 | ​ | 10,033 |
| Inventory | ​ | 14,135 | ​ | 12,513 |
| Prepaid expenses and other current assets | ​ | 3,947 | ​ | 4,658 |
| Total current assets | ​ | 181,077 | ​ | 215,626 |
| Operating lease, right-of-use assets | ​ | 7,136 | ​ | 3,956 |
| Property and equipment, net | ​ | 2,940 | ​ | 3,083 |
| Goodwill | ​ | ​ | 10,185 | ​ | ​ | 10,050 |
| Intangible assets, net | ​ | ​ | 8,162 | ​ | ​ | 8,488 |
| Other long-term assets | ​ | 1,330 | ​ | 1,384 |
| Total assets | ​ | $ | 210,830 | ​ | $ | 242,587 |
| Liabilities and Stockholders' Equity | ​ | ​ | ​ | ​ |
| Current liabilities: | ​ | ​ | ​ | ​ |
| Accounts payable | ​ | $ | 1,486 | ​ | $ | 1,397 |
| Accrued expenses | ​ | 6,034 | ​ | 8,847 |
| Deferred revenue | ​ | 10,814 | ​ | 7,514 |
| Operating lease liabilities | ​ | 1,860 | ​ | 1,468 |
| Total current liabilities | ​ | 20,194 | ​ | 19,226 |
| Long-term debt | ​ | — | ​ | 15,000 |
| Operating lease liabilities, net of current portion | ​ | 4,962 | ​ | 3,040 |
| Deferred revenue, net of current portion | ​ | 8,474 | ​ | 11,496 |
| Deferred income taxes | ​ | 2,585 | ​ | 2,671 |
| Other long-term liabilities | ​ | 156 | ​ | 555 |
| Total liabilities | ​ | 36,371 | ​ | 51,988 |
| Commitments and contingencies | ​ | ​ | ​ | ​ |
| Stockholders' equity: | ​ | ​ | ​ | ​ |
| Preferred stock, $ 0.001 par value; 5,000,000 shares authorized, no shares issued or outstanding at June 30, 2023 and December 31, 2022, respectively | ​ | ​ | — | ​ | ​ | — |
| Common stock, $ 0.001 par value; 100,000,000 shares authorized; 32,326,861 shares and 31,859,847 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively | ​ | 32 | ​ | 32 |
| Additional paid-in capital | ​ | 329,361 | ​ | 323,969 |
| Accumulated other comprehensive income | ​ | ​ | 1,144 | ​ | ​ | 798 |
| Accumulated deficit | ​ | ( 156,078 ) | ​ | ( 134,200 ) |
| Total stockholders' equity | ​ | 174,459 | ​ | 190,599 |
| Total liabilities and stockholders' equity | ​ | $ | 210,830 | ​ | $ | 242,587 |

​
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
​
4
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended June 30, | ​ | Six Months Ended June 30, | ​ |
| ​ | 2023 | 2022 | 2023 | 2022 | ​ |
| Revenue: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Product revenue | ​ | $ | 9,595 | ​ | $ | 9,082 | ​ | $ | 16,617 | ​ | $ | 15,589 | ​ |
| Service revenue | ​ | 2,354 | ​ | 1,526 | ​ | 4,594 | ​ | 3,048 | ​ |
| Contract revenue | ​ | 145 | ​ | 498 | ​ | 370 | ​ | 775 | ​ |
| Total revenue | ​ | 12,094 | ​ | 11,106 | ​ | 21,581 | ​ | 19,412 | ​ |
| Cost of revenue: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Product cost of revenue | ​ | 4,800 | ​ | 3,304 | ​ | 8,586 | ​ | 6,276 | ​ |
| Service cost of revenue | ​ | 1,448 | ​ | 1,057 | ​ | 2,718 | ​ | 2,126 | ​ |
| Contract cost of revenue | ​ | 52 | ​ | 111 | ​ | 99 | ​ | 247 | ​ |
| Total cost of revenue | ​ | 6,300 | ​ | 4,472 | ​ | 11,403 | ​ | 8,649 | ​ |
| Gross profit | ​ | 5,794 | ​ | 6,634 | ​ | 10,178 | ​ | 10,763 | ​ |
| Operating expenses: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Research and development | ​ | 5,525 | ​ | 4,293 | ​ | 10,923 | ​ | 8,198 | ​ |
| Selling, general and administrative | ​ | 11,208 | ​ | 10,710 | ​ | 23,211 | ​ | 20,455 | ​ |
| Total operating expenses | ​ | 16,733 | ​ | 15,003 | ​ | 34,134 | ​ | 28,653 | ​ |
| Loss from operations | ​ | ( 10,939 ) | ​ | ( 8,369 ) | ​ | ( 23,956 ) | ​ | ( 17,890 ) | ​ |
| Other income: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Interest income | ​ | ​ | 1,689 | ​ | ​ | 293 | ​ | ​ | 2,706 | ​ | ​ | 464 | ​ |
| Interest expense | ​ | — | ​ | ( 15 ) | ​ | ( 551 ) | ​ | ( 35 ) | ​ |
| Other expense, net | ​ | ( 167 ) | ​ | ( 8 ) | ​ | ( 200 ) | ​ | ( 53 ) | ​ |
| Total other income, net | ​ | 1,522 | ​ | 270 | ​ | 1,955 | ​ | 376 | ​ |
| Loss from operations before income taxes | ​ | ​ | ( 9,417 ) | ​ | ​ | ( 8,099 ) | ​ | ​ | ( 22,001 ) | ​ | ​ | ( 17,514 ) | ​ |
| Benefit for income taxes | ​ | ​ | 71 | ​ | ​ | — | ​ | ​ | 122 | ​ | ​ | — | ​ |
| Net loss | ​ | $ | ( 9,346 ) | ​ | $ | ( 8,099 ) | ​ | $ | ( 21,879 ) | ​ | $ | ( 17,514 ) | ​ |
| Net loss per share | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Basic and diluted | ​ | $ | ( 0.29 ) | ​ | $ | ( 0.26 ) | ​ | $ | ( 0.68 ) | ​ | $ | ( 0.56 ) | ​ |
| Weighted average common shares outstanding | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Basic and diluted | ​ | ​ | 32,199,156 | ​ | ​ | 31,413,431 | ​ | ​ | 32,083,122 | ​ | ​ | 31,312,559 | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended June 30, | ​ | Six Months Ended June 30, | ​ |
| ​ | 2023 | ​ | 2022 | ​ | 2023 | ​ | 2022 | ​ |
| Net loss | ​ | $ | ( 9,346 ) | ​ | $ | ( 8,099 ) | ​ | $ | ( 21,879 ) | ​ | $ | ( 17,514 ) | ​ | ​ |
| Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Foreign currency translation adjustment | ​ | ( 57 ) | ​ | — | ​ | 234 | ​ | — | ​ | ​ |
| Unrealized gains on marketable securities, net of tax of $ 0 | ​ | ​ | 112 | ​ | ​ | — | ​ | ​ | 112 | ​ | ​ | — | ​ | ​ |
| Total other comprehensive income | ​ | $ | 55 | ​ | $ | — | ​ | $ | 346 | ​ | $ | — | ​ | ​ |
| Comprehensive loss | ​ | $ | ( 9,291 ) | ​ | $ | ( 8,099 ) | ​ | $ | ( 21,533 ) | ​ | $ | ( 17,514 ) | ​ | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Accumulated | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | Additional | ​ | Other | ​ | ​ | ​ | Total |
| ​ | ​ | Common Stock | ​ | Paid-in | ​ | Comprehensive | ​ | Accumulated | ​ | Stockholders' |
| ​ | Shares | Amount | Capital | ​ | Income | Deficit | Equity |
| Balances at December 31, 2022 | ​ | 31,859,847 | ​ | $ | 32 | ​ | $ | 323,969 | ​ | $ | 798 | ​ | $ | ( 134,200 ) | ​ | $ | 190,599 |
| Issuance of common stock upon exercise of stock options | 56,547 | ​ | — | ​ | 88 | ​ | — | ​ | — | ​ | 88 |
| Stock-based compensation expense | — | ​ | — | ​ | 2,166 | ​ | — | ​ | — | ​ | 2,166 |
| Vesting of restricted stock units | ​ | 145,123 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — |
| Net loss | — | ​ | — | ​ | — | ​ | — | ​ | ( 12,532 ) | ​ | ( 12,532 ) |
| Foreign currency translation adjustments | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 291 | ​ | ​ | — | ​ | ​ | 291 |
| Balances at March 31, 2023 | ​ | 32,061,517 | ​ | $ | 32 | ​ | $ | 326,223 | ​ | $ | 1,089 | ​ | $ | ( 146,732 ) | ​ | $ | 180,612 |
| Issuance of common stock upon exercise of stock options | ​ | 166,226 | ​ | ​ | — | ​ | ​ | 301 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 301 |
| Stock-based compensation expense | ​ | — | ​ | ​ | — | ​ | ​ | 2,578 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 2,578 |
| Issuance of common stock upon ESPP purchase | ​ | 45,082 | ​ | ​ | — | ​ | ​ | 259 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 259 |
| Vesting of restricted stock units | ​ | 54,036 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — |
| Net loss | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 9,346 ) | ​ | ​ | ( 9,346 ) |
| Foreign currency translation adjustments | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 57 ) | ​ | ​ | — | ​ | ​ | ( 57 ) |
| Unrealized gains on marketable securities | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 112 | ​ | ​ | — | ​ | ​ | 112 |
| Balances at June 30, 2023 | ​ | 32,326,861 | ​ | $ | 32 | ​ | $ | 329,361 | ​ | $ | 1,144 | ​ | $ | ( 156,078 ) | ​ | $ | 174,459 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | Additional | ​ | ​ | ​ | Total |
| ​ | ​ | Common Stock | ​ | Paid-in | ​ | Accumulated | ​ | Stockholders' |
| ​ | Shares | Amount | Capital | Deficit | Equity |
| Balances at December 31, 2021 | ​ | 31,077,004 | ​ | $ | 31 | ​ | $ | 315,210 | ​ | $ | ( 100,637 ) | ​ | $ | 214,604 |
| Issuance of common stock upon exercise of stock options | 243,842 | ​ | — | ​ | 324 | ​ | — | ​ | 324 |
| Stock-based compensation expense | — | ​ | — | ​ | 1,289 | ​ | — | ​ | 1,289 |
| Vesting of restricted stock units | ​ | 12,936 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — |
| Net loss | — | ​ | — | ​ | — | ​ | ( 9,415 ) | ​ | ( 9,415 ) |
| Balances at March 31, 2022 | ​ | 31,333,782 | ​ | $ | 31 | ​ | $ | 316,823 | ​ | $ | ( 110,052 ) | ​ | $ | 206,802 |
| Issuance of common stock upon exercise of stock options | ​ | 164,638 | ​ | ​ | 1 | ​ | ​ | 275 | ​ | ​ | — | ​ | ​ | 276 |
| Stock-based compensation expense | ​ | — | ​ | ​ | — | ​ | ​ | 1,894 | ​ | ​ | — | ​ | ​ | 1,894 |
| Issuance of common stock upon ESPP purchase | ​ | 16,052 | ​ | ​ | — | ​ | ​ | 242 | ​ | ​ | — | ​ | ​ | 242 |
| Vesting of restricted stock units | ​ | 16,643 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — |
| Net loss | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 8,099 ) | ​ | ​ | ( 8,099 ) |
| Balances at June 30, 2022 | ​ | 31,531,115 | ​ | $ | 32 | ​ | $ | 319,234 | ​ | $ | ( 118,151 ) | ​ | $ | 201,115 |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Six Months Ended June 30, |
| ​ | 2023 | 2022 |
| Cash flows from operating activities: | ​ | ​ | ​ | ​ |
| Net loss | ​ | $ | ( 21,879 ) | ​ | $ | ( 17,514 ) |
| Adjustments to reconcile net loss to net cash used in operating activities: | ​ | ​ | ​ | ​ |
| Depreciation and amortization expense | ​ | 1,239 | ​ | 578 |
| Stock-based compensation expense | ​ | 4,744 | ​ | 3,183 |
| Noncash interest expense and loss on extinguishment of debt | ​ | 523 | ​ | 6 |
| Provision for inventory obsolescence | ​ | 38 | ​ | 39 |
| Provision for credit losses | ​ | ​ | 108 | ​ | ​ | — |
| Change in fair value of contingent consideration | ​ | ​ | 231 | ​ | ​ | — |
| Deferred income tax | ​ | ​ | ( 122 ) | ​ | ​ | — |
| Changes in operating assets and liabilities: | ​ | ​ | ​ | ​ |
| Accounts receivable, net | ​ | ( 376 ) | ​ | 5,277 |
| Inventory | ​ | ( 1,680 ) | ​ | ( 3,857 ) |
| Prepaid expenses and other current assets | ​ | ( 274 ) | ​ | 1,119 |
| Other long-term assets | ​ | ( 58 ) | ​ | 18 |
| Accounts payable and accrued expenses | ​ | ( 918 ) | ​ | ( 1,043 ) |
| Deferred revenue | ​ | 278 | ​ | 1,372 |
| Right-of-use operating lease assets | ​ | 741 | ​ | 599 |
| Operating lease liabilities | ​ | ( 682 ) | ​ | ( 653 ) |
| Other long-term liabilities | ​ | ( 442 ) | ​ | ​ | — |
| Net cash used in operating activities | ​ | ( 18,529 ) | ​ | ( 10,876 ) |
| Cash flows from investing activities: | ​ | ​ | ​ | ​ |
| Purchases of property and equipment | ​ | ( 1,505 ) | ​ | ( 689 ) |
| Purchases of marketable securities | ​ | ​ | ( 19,616 ) | ​ | ​ | — |
| Net cash used in investing activities | ​ | ( 21,121 ) | ​ | ( 689 ) |
| Cash flows from financing activities: | ​ | ​ | ​ | ​ |
| Payments for withholding taxes on vested awards | ​ | ​ | ( 530 ) | ​ | ​ | ( 133 ) |
| Proceeds from issuance of common stock | ​ | ​ | 648 | ​ | ​ | 842 |
| Payments of public offering costs | ​ | ​ | — | ​ | ​ | ( 112 ) |
| Proceeds from borrowings on revolving line of credit | ​ | — | ​ | 30,000 |
| Payments for contingent consideration | ​ | ​ | ( 900 ) | ​ | ​ | — |
| Repayment of notes payable | ​ | ​ | ( 15,000 ) | ​ | ​ | ( 30,000 ) |
| Net cash (used in) provided by financing activities | ​ | ( 15,782 ) | ​ | 597 |
| Effect of foreign exchange rate changes on cash and cash equivalents | ​ | ​ | 6 | ​ | ​ | — |
| Net decrease in cash, cash equivalents and restricted cash | ​ | ( 55,426 ) | ​ | ( 10,968 ) |
| Cash, cash equivalents and restricted cash at beginning of period | ​ | 188,593 | ​ | 224,133 |
| Cash, cash equivalents and restricted cash at end of period | ​ | $ | 133,167 | ​ | $ | 213,165 |
| Supplemental disclosure of noncash investing and financing information: | ​ | ​ | ​ | ​ |
| Property and equipment included in account payable | ​ | ​ | 48 | ​ | ​ | 147 |
| Transfers of inventory to property and equipment | ​ | ​ | 195 | ​ | ​ | 558 |
| Reconciliation of cash, cash equivalents and restricted cash: | ​ | ​ | ​ | ​ | ​ | ​ |
| Cash and cash equivalents | ​ | $ | 132,996 | ​ | $ | 212,994 |
| Restricted cash included in prepaid expenses and other current assets | ​ | ​ | — | ​ | 60 |
| Restricted cash included in other long-term assets | ​ | ​ | 171 | ​ | ​ | 111 |
| Total cash, cash equivalents and restricted cash shown in the statement of cash flows | ​ | $ | 133,167 | ​ | $ | 213,165 |

908 DEVICES INC.NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unaudited) 1. Nature of the Business and Basis of Presentation908 Devices Inc. (the “Company”) was incorporated in the State of Delaware on February 10, 2012 . The Company is a commercial-stage technology company providing a suite of purpose-built handheld and desktop devices used at the point-of-need for chemical and biochemical analysis in a broad array of markets including life sciences research, bioprocessing, pharma/biopharma, forensics and adjacent markets.The Company is subject to risks and uncertainties common to technology companies in the device industry and of similar size, including, but not limited to, development by competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with government regulations, uncertainty of market acceptance of products, and the need to obtain additional financing to fund operations. Potential risks and uncertainties also include, without limitation, uncertainties regarding rising inflation and higher interest rates. Products currently under development will require additional research and development efforts prior to commercialization and will require additional capital and adequate personnel and infrastructure. The Company’s research and development may not be successfully completed, adequate protection for the Company’s technology may not be obtained, the Company may not obtain necessary government regulatory approval, and approved products may not prove commercially viable. The Company operates in an environment of rapid change in technology and competition.AcquisitionThe Company acquired TRACE Analytics GmbH, located in Braunschweig, Germany (“Trace”) in August 2022. Trace changed its corporate name to 908 Devices GmbH in February 2023. Trace is a leading provider of online analysis systems for biotech applications in research, development and production. Trace’s products are used for monitoring and control of complex processes in industrial pharmaceutical productions under continuous measurement conditions. With the acquisition of Trace, the Company has acquired enabling sampling technology that it expects to integrate within future product offerings. See Note 13, Acquisition, for further information.Basis of PresentationThe Company’s condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”).The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, 908 Devices Securities Corporation, 908 Devices (Shanghai) Technology Co., Ltd. and 908 Devices GmbH. All intercompany balances and transactions have been eliminated.The accompanying condensed consolidated financial statements have been prepared based on continuity of operations, realization of assets and the satisfaction of liabilities and commitments in the ordinary course of business. The Company has incurred recurring losses since inception, including net losses of $ 21.9 million for the six months ended June 30, 2023 and $ 33.6 million for the year ended December 31, 2022. As of June 30, 2023, the Company had an accumulated deficit of $ 156.1 million. The Company expects to continue to generate operating losses in the foreseeable future. The Company expects that its cash and cash equivalents and revenue from product and service will be sufficient to fund its operating expenses and capital expenditure requirements for at least 12 months from the issuance date of the condensed consolidated financial statements. The Company may seek additional funding through private or public equity financings, debt financings, collaborations, strategic alliances and marketing, distribution or licensing arrangements. The Company may not be able to obtain financing on acceptable terms, or at all, and the Company may not be able to enter into collaborations or other arrangements. The terms of any financing may adversely affect the holdings or the rights of the Company’s stockholders. If the Company is unable to obtain funding, the Company could be forced to delay, reduce or eliminate some or all of its research and development programs, product expansion or commercialization efforts, or the Company may be unable to continue operations. 9
​​ 2. Summary of Significant Accounting Policies Unaudited Condensed Interim Financial InformationThe condensed consolidated balance sheet at December 31, 2022 was derived from audited consolidated financial statements but does not include all disclosures required by GAAP. The accompanying unaudited condensed consolidated financial statements as of June 30, 2023 and for the three and six months ended June 30, 2023 and 2022 have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2022 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 on file with the SEC. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the Company’s financial position as of June 30, 2023 and results of operations for the three and six months ended June 30, 2023 and 2022 and statements of stockholders’ equity for the three and six months ended June 30, 2023 and 2022 and cash flows for the six months ended June 30, 2023 and 2022 have been made. The Company’s results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2023 or any other period. Use of EstimatesThe preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, revenue recognition and accounts receivable, the valuation of inventory, fair value of assets acquired and liabilities assumed in acquisitions and the valuation of stock-based awards. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. Due to rising inflation and higher interest rates, there has been uncertainty and disruption in the global economy and financial markets. The Company is not aware of any specific event or circumstance that would require further updates to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of the date of issuance of these condensed consolidated financial statements. These estimates may change, as new events occur and additional information is obtained. On an ongoing basis, management evaluates its estimates as there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results may differ from those estimates or assumptions. Risk of Concentrations of Credit, Significant Customers and Significant SuppliersFinancial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company maintains the majority of its cash and cash equivalents with three financial institutions that management believes to be of high credit quality. The Company has not experienced any other-than-temporary losses with respect to its cash and cash equivalents and does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships.Significant customers are those that accounted for 10 % or more of the Company’s total revenue or accounts receivable. For the three months ended June 30, 2023, three customers represented 13 %, 12 % and 10 % of total revenue, respectively. For the comparable three months ended June 30, 2022, one customer represented 17 % of total revenue, respectively. For the six months ended June 30, 2023 and 2022, one customer represented 14 % and 19 % of total revenue, respectively. As of June 30, 2023, two customers accounted for 26 % and 14 % of gross accounts receivable, respectively. As of December 31, 2022, two customers accounted for 20 % and 12 % of gross accounts receivable, respectively. Certain of the components included in the Company’s products are obtained from a sole source, a single source or a limited group of suppliers. Although the Company seeks to reduce dependence on those limited sources of suppliers and manufacturers, the partial or complete loss of certain of these sources, or the requirement to establish a new supplier for the 10
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended June 30, | ​ | Six Months Ended June 30, |
| ​ | 2023 | 2022 | 2023 | 2022 |
| Balances at beginning of period | ​ | $ | 25 | ​ | $ | 1,750 | ​ | $ | 25 | ​ | $ | 1,750 |
| Provision for credit losses, net of recoveries | ​ | ​ | 108 | ​ | ​ | — | ​ | ​ | 108 | ​ | ​ | — |
| Balances at end of period | ​ | $ | 133 | ​ | $ | 1,750 | ​ | $ | 133 | ​ | $ | 1,750 |
| ● | Level 1 — Quoted prices in active markets for identical assets or liabilities. |
| ● | Level 2 — Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. |
| ● | Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. |

| ​ | ​ | ​ |
| ​ | ​ | ​ |
| Customer Relationships | ​ | 8 years |
| Developed Technology | ​ | 15 years |
| Software | ​ | 3 years |
| Trade Name | ​ | 2 years |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Six Months Ended June 30, |
| ​ | 2023 | 2022 |
| Balances at beginning of period | ​ | $ | 16,510 | ​ | $ | 14,521 |
| Recognition of revenue included in balance at beginning of the period | ​ | ( 3,811 ) | ​ | ( 2,494 ) |
| Revenue deferred during the period, net of revenue recognized | ​ | 6,589 | ​ | 3,863 |
| Balances at end of period | ​ | $ | 19,288 | ​ | $ | 15,890 |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | June 30, | ​ | December 31, |
| ​ | 2023 | 2022 |
| Deferred revenue expected to be recognized in: | ​ | ​ |
| One year or less | ​ | $ | 10,814 | ​ | $ | 7,514 |
| One to two years | ​ | 5,425 | ​ | 4,750 |
| Three years and beyond | ​ | 3,049 | ​ | 4,246 |
| ​ | ​ | $ | 19,288 | ​ | $ | 16,510 |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended June 30, | ​ | Six Months Ended June 30, |
| ​ | 2023 | 2022 | 2023 | 2022 |
| Product and service revenue: | ​ | ​ | ​ | ​ |
| Device sales revenue | ​ | $ | 7,959 | ​ | $ | 7,755 | ​ | $ | 13,042 | ​ | $ | 13,287 |
| Recurring revenue | ​ | 3,990 | ​ | 2,853 | ​ | 8,169 | ​ | 5,350 |
| Total product and service revenue | ​ | 11,949 | ​ | 10,608 | ​ | 21,211 | ​ | 18,637 |
| Contract revenue | ​ | 145 | ​ | 498 | ​ | 370 | ​ | 775 |
| Total revenue | ​ | $ | 12,094 | ​ | $ | 11,106 | ​ | $ | 21,581 | ​ | $ | 19,412 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended June 30, | ​ | Six Months Ended June 30, | ​ |
| ​ | 2023 | 2022 | 2023 | 2022 | ​ |
| Handheld revenue: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Device sales revenue | ​ | $ | 6,503 | ​ | $ | 5,431 | ​ | $ | 10,249 | ​ | $ | 8,731 | ​ |
| Recurring revenue | ​ | ​ | 2,319 | ​ | ​ | 1,506 | ​ | ​ | 4,745 | ​ | ​ | 2,676 | ​ |
| Total handheld revenue | ​ | ​ | 8,822 | ​ | ​ | 6,937 | ​ | ​ | 14,994 | ​ | ​ | 11,407 | ​ |
| Desktop revenue: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Device sales revenue | ​ | ​ | 1,456 | ​ | ​ | 2,323 | ​ | ​ | 2,793 | ​ | ​ | 4,556 | ​ |
| Recurring revenue | ​ | ​ | 1,671 | ​ | ​ | 1,348 | ​ | ​ | 3,424 | ​ | ​ | 2,674 | ​ |
| Total desktop revenue | ​ | ​ | 3,127 | ​ | ​ | 3,671 | ​ | ​ | 6,217 | ​ | ​ | 7,230 | ​ |
| Total product and service revenue | ​ | $ | 11,949 | ​ | $ | 10,608 | ​ | $ | 21,211 | ​ | $ | 18,637 | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Three Months Ended June 30, | ​ | Six Months Ended June 30, | ​ |
| ​ | 2023 | 2022 | 2023 | 2022 | ​ |
| Government | $ | 8,812 | ​ | $ | 7,002 | ​ | $ | 14,992 | ​ | $ | 11,719 | ​ |
| Pharmaceutical/Biotechnology | ​ | 3,106 | ​ | 3,577 | ​ | ​ | 6,158 | ​ | 6,705 | ​ |
| Academia and other | ​ | 31 | ​ | 29 | ​ | ​ | 61 | ​ | 213 | ​ |
| Total product and service revenue | $ | 11,949 | ​ | $ | 10,608 | ​ | $ | 21,211 | ​ | $ | 18,637 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Three Months Ended June 30, | ​ | Six Months Ended June 30, | ​ |
| ​ | 2023 | 2022 | 2023 | 2022 | ​ |
| United States | $ | 7,857 | ​ | $ | 9,460 | ​ | $ | 14,350 | ​ | $ | 15,512 | ​ |
| Europe, Middle East and Africa | ​ | 3,954 | ​ | 1,245 | ​ | ​ | 5,942 | ​ | 2,601 | ​ |
| Asia Pacific | ​ | 221 | ​ | ​ | 391 | ​ | ​ | 797 | ​ | ​ | 1,273 | ​ |
| Americas other | ​ | 62 | ​ | 10 | ​ | ​ | 492 | ​ | 26 | ​ |
| ​ | $ | 12,094 | ​ | $ | 11,106 | ​ | $ | 21,581 | ​ | $ | 19,412 | ​ |

the aggregate value of tangible and intangible assets, net of liabilities assumed, is recorded as goodwill. These valuations require significant estimates and assumptions, especially with respect to intangible assets.The Company estimates the fair value of the contingent consideration earnouts using the Monte Carlo Simulation or probability weighted scenario depending on the nature of the contingent consideration and updates the fair value of the contingent consideration at each reporting period based on the estimated probability of achieving the earnout targets and applying a discount rate that captures the risk associated with the expected contingent payments. To the extent that these estimates change in the future regarding the likelihood of achieving these targets, the Company may need to record material adjustments to its accrued contingent consideration. Such changes in the fair value of contingent consideration are recorded as contingent consideration expense or income in the consolidated statements of operations.The Company uses the income approach to determine the fair value of certain identifiable intangible assets including customer relationships and developed technology. This approach determines fair value by estimating after-tax cash flows attributable to these assets over their respective useful lives and then discounting these after-tax cash flows back to a present value. The Company bases its assumptions on estimates of future cash flows, expected growth rates, expected trends in technology, probabilities of customer renewals, etc. The Company bases the discount rates used to arrive at a present value as of the date of acquisition on the time value of money and certain industry-specific risk factors. The Company believes the estimated purchased customer relationships, developed technology, software and trade name amounts determined represent the fair value at the date of acquisition and do not exceed the amount a third-party would pay for the assets. Recently Adopted Accounting PronouncementsThe Company qualifies as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012 and has elected not to “opt out” of the extended transition related to complying with new or revised accounting standards, which means that when a standard is issued or revised and it has different application dates for public and nonpublic companies, the Company will adopt the new or revised standard at the time nonpublic companies adopt the new or revised standard and will do so until such time that the Company either (i) irrevocably elects to “opt out” of such extended transition period or (ii) no longer qualifies as an emerging growth company.In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326). The new standard adjusts the accounting for assets held at amortized costs basis, including marketable securities accounted for as available for sale, and trade receivables. The standard eliminates the probable initial recognition threshold and requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For public entities except smaller reporting companies, the guidance is effective for annual reporting periods beginning after December 15, 2019 and for interim periods within those fiscal years. For non-public entities and smaller reporting companies, the guidance was effective for annual reporting periods beginning after December 15, 2021. In November 2019, the FASB issued ASU No. 2019-10, which deferred the effective date for non-public entities to annual reporting periods beginning after December 15, 2022, including interim periods within those fiscal years. Early application is allowed. The Company adopted this standard effective January 1, 2023 and deemed no material impact on our condensed consolidated financial statements. ​17
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Fair Value Measurements at June 30, 2023 Using: |
| ​ | Level 1 | Level 2 | Level 3 | Total |
| Assets: | ​ | ​ | ​ | ​ |
| Cash equivalents - Money market funds | ​ | $ | 90,527 | ​ | $ | — | ​ | $ | — | ​ | $ | 90,527 |
| Cash equivalents - U.S. Treasury securities | ​ | ​ | — | ​ | ​ | 9,969 | ​ | ​ | — | ​ | ​ | 9,969 |
| Marketable securities - U.S. Treasury securities | ​ | ​ | — | ​ | ​ | 19,691 | ​ | ​ | — | ​ | ​ | 19,691 |
| Total assets measured at fair value | $ | 90,527 | $ | 29,660 | $ | — | $ | 120,187 |
| Other current liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Acquisition-related contingent consideration | ​ | $ | — | ​ | $ | — | ​ | $ | 973 | ​ | $ | 973 |
| Other long-term liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Acquisition-related contingent consideration | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 156 | ​ | ​ | 156 |
| Total liabilities measured at fair value | ​ | $ | — | ​ | $ | — | ​ | $ | 1,129 | ​ | $ | 1,129 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Fair Value Measurements at December 31, 2022 Using: |
| ​ | Level 1 | Level 2 | Level 3 | Total |
| Assets: | ​ | ​ | ​ | ​ |
| Cash equivalents - Money market funds | ​ | $ | 27,866 | ​ | $ | — | ​ | $ | — | ​ | $ | 27,866 |
| ​ | $ | 27,866 | $ | — | $ | — | $ | 27,866 |
| Other current liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Acquisition-related contingent consideration | ​ | $ | — | ​ | $ | — | ​ | $ | 343 | ​ | $ | 343 |
| Acquisition-related contingent consideration - pension liability | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 900 | ​ | ​ | 900 |
| ​ | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 1,243 | ​ | ​ | 1,243 |
| Other long-term liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Acquisition-related contingent consideration | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 555 | ​ | ​ | 555 |
| Total liabilities measured at fair value | ​ | $ | — | ​ | $ | — | ​ | $ | 1,798 | ​ | $ | 1,798 |

| ​ | ​ | ​ | ​ |
| Balance as of December 31, 2022 | ​ | $ | 1,798 |
| Accretion - earnout | ​ | ​ | 231 |
| Release of pension liability | ​ | ​ | ( 900 ) |
| Balance as of June 30, 2023 | ​ | $ | 1,129 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | June 30, 2023 | ​ |
| ​ | ​ | Amortized Cost | ​ | GrossUnrealizedGain | ​ | GrossUnrealizedLoss | ​ | Credit Losses | ​ | Fair Value | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Cash equivalents - U.S. Treasury securities | ​ | ​ | 9,932 | ​ | ​ | 37 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 9,969 | ​ |
| Marketable securities - U.S. Treasury securities | ​ | ​ | 19,616 | ​ | ​ | 75 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 19,691 | ​ |
| ​ | ​ | $ | 29,548 | ​ | $ | 112 | ​ | $ | — | ​ | $ | — | ​ | $ | 29,660 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | June 30, | ​ | December 31, | ​ |
| ​ | 2023 | 2022 | ​ |
| Raw materials | ​ | $ | 9,579 | ​ | $ | 8,343 | ​ |
| Work-in-progress | ​ | ​ | 2,916 | ​ | 2,722 | ​ |
| Finished goods | ​ | ​ | 1,640 | ​ | 1,448 | ​ |
| ​ | ​ | $ | 14,135 | ​ | $ | 12,513 | ​ |

| ​ | ​ | ​ | ​ |
| ​ | ​ | Six Months Ended |
| ​ | June 30, 2023 |
| Balances at beginning of period | ​ | $ | 10,050 |
| Foreign currency impact | ​ | ​ | 135 |
| Balances at end of period | ​ | $ | 10,185 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | June 30, 2023 |
| ​ | ​ | Cost | ​ | Accumulated Amortization | ​ | Translation adjustments | ​ | Net Book Value |
| Customer Relationships | ​ | $ | 3,142 | ​ | $ | ( 371 ) | ​ | $ | 191 | ​ | $ | 2,962 |
| Developed Technology | ​ | ​ | 4,967 | ​ | ​ | ( 312 ) | ​ | ​ | 309 | ​ | ​ | 4,964 |
| Software | ​ | ​ | 254 | ​ | ​ | ( 68 ) | ​ | ​ | 14 | ​ | ​ | 200 |
| Trade Name | ​ | ​ | 61 | ​ | ​ | ( 29 ) | ​ | ​ | 4 | ​ | ​ | 36 |
| ​ | ​ | $ | 8,424 | ​ | $ | ( 780 ) | ​ | $ | 518 | ​ | $ | 8,162 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | December 31, 2022 |
| ​ | ​ | Cost | ​ | Accumulated Amortization | ​ | Translation adjustments | ​ | Net Book Value |
| Customer Relationships | ​ | $ | 3,142 | ​ | $ | ( 163 ) | ​ | $ | 150 | ​ | $ | 3,129 |
| Developed Technology | ​ | ​ | 4,967 | ​ | ​ | ( 137 ) | ​ | ​ | 243 | ​ | ​ | 5,073 |
| Software | ​ | ​ | 254 | ​ | ​ | ( 30 ) | ​ | ​ | 11 | ​ | ​ | 235 |
| Trade Name | ​ | ​ | 61 | ​ | ​ | ( 13 ) | ​ | ​ | 3 | ​ | ​ | 51 |
| ​ | ​ | $ | 8,424 | ​ | $ | ( 343 ) | ​ | $ | 407 | ​ | $ | 8,488 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended June 30, | ​ | Six Months Ended June 30, | ​ |
| ​ | 2023 | 2022 | 2023 | 2022 | ​ |
| Product cost of revenue | ​ | $ | 107 | ​ | $ | — | ​ | $ | 213 | ​ | $ | — | ​ |
| Selling, general and administrative expenses | ​ | ​ | 112 | ​ | ​ | — | ​ | ​ | 224 | ​ | ​ | — | ​ |
| ​ | ​ | $ | 219 | ​ | $ | — | ​ | $ | 437 | ​ | $ | — | ​ |
| ​ | ​ | ​ | ​ |
| 2023 (six months) | ​ | $ | 442 |
| 2024 | ​ | ​ | 870 |
| 2025 | ​ | ​ | 851 |
| 2026 | ​ | ​ | 779 |
| 2027 | ​ | ​ | 774 |
| Thereafter | ​ | ​ | 4,446 |
| ​ | ​ | $ | 8,162 |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | June 30, | ​ | December 31, |
| ​ | 2023 | 2022 |
| Accrued employee compensation and benefits | ​ | $ | 2,506 | ​ | $ | 4,909 |
| Accrued warranty | ​ | ​ | 854 | ​ | 1,119 |
| Accrued professional fees | ​ | ​ | 729 | ​ | 677 |
| Contingent consideration | ​ | ​ | 973 | ​ | ​ | 1,243 |
| Accrued other | ​ | ​ | 972 | ​ | 899 |
| ​ | ​ | $ | 6,034 | ​ | $ | 8,847 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Six Months Ended June 30, |
| ​ | 2023 | 2022 |
| Accrual balance at beginning of period | ​ | $ | 1,119 | ​ | $ | 1,593 |
| Provision for new warranties | ​ | 341 | ​ | 1,166 |
| Settlements and adjustments made during the period | ​ | ( 606 ) | ​ | ( 1,476 ) |
| Accrual balance at end of period | ​ | $ | 854 | ​ | $ | 1,283 |

2022 Loan RevolverOn November 2, 2022, the Company entered into a Loan and Security Agreement (the “2022 Revolver”), by and between, the Company, as borrower, and Silicon Valley Bank (“SVB”), as lender. ​The 2022 Revolver provided for a revolving line of credit of up to $ 35.0 million. The Company was permitted to make interest-only payments on the revolving line of credit through November 2, 2025, at which time all outstanding indebtedness would be immediately due and payable. The outstanding principal amount of any advance accrued interest at a floating rate per annum equal to the greater of (i) three and one-half percent ( 3.50 %) and (ii) the “prime rate” as published in The Wall Street Journal for the relevant period minus one-half percent ( 0.50 %). The Company’s obligations under the 2022 Revolver were secured by substantially all of the Company’s assets, excluding its intellectual property, which was subject to a negative pledge. The revolving line of credit under the 2022 Revolver was scheduled to terminate on November 2, 2025. ​As of June 30, 2023, there were no balances outstanding under the 2022 Revolver. As of December 31, 2022, the outstanding principal balance under the 2022 Revolver was $ 15.0 million, which was repaid in full on January 4, 2023. The interest rate applicable to borrowing under the 2022 Revolver was 7.0 % as of December 31, 2022.​The 2022 Revolver also contained certain financial covenants, including a requirement that the amount of unrestricted and unencumbered cash minus advances under the 2022 Revolver, was not less than the amount equal to the greater of (i) $ 10.0 million or (ii) nine (9) months of cash burn. The 2022 Revolver contained customary representations and warranties, as well as certain non-financial covenants, including limitations on, among other things, the Company’s ability to change the principal nature of its business, dispose of the Company’s business or property, engage in any change of control transaction, merge or consolidate with any other entity or to acquire all or substantially all the capital stock or property of another entity, incur additional indebtedness or liens, pay dividends or make other distributions on capital stock, redeem the Company’s capital stock, engage in transactions with affiliates or otherwise encumber the Company’s intellectual property, in each case, subject to customary exceptions.​On March 10, 2023, SVB, one of our financial institutions, was closed by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (“FDIC”) as receiver. On March 12, 2023, the U.S. Department of the Treasury, Federal Reserve Board, and FDIC released a joint statement announcing that the FDIC would complete its resolution of SVB in a manner that fully protected all depositors and that depositors would have access to all of their money starting March 13, 2023.As of March 31, 2023, the Company had transferred substantially all its cash and cash equivalents away from SVB and deposited the funds with new financial institutions. As a result of the transfer of the Company’s cash, cash equivalents and marketable securities, the Company was in default, and continued to be in default as of June 30, 2023, of its financial covenants under the 2022 Revolver. The Company recorded a loss on extinguishment of debt of $ 0.5 million in the three months ended March 31, 2023, which was included in interest expense in the condensed consolidated statements of operations and comprehensive loss. ​On August 4, 2023, the Company entered into a Default Waiver and First Amendment to Loan and Security Agreement (the “Amended 2022 Revolver”), by and between, the Company, as borrower, and SVB, as lender. The Amended 2022 Revolver provides for a revolving line of credit of up to $ 10.0 million. The Company is permitted to make interest-only payments on the revolving line of credit through November 2, 2025, at which time all outstanding indebtedness shall be immediately due and payable. The outstanding principal amount of any advance shall accrue interest at a floating rate per annum equal to the greater of (i) four and one-half percent ( 4.50 %) and (ii) the “prime rate” as published in The Wall Street Journal for the relevant period minus one-half percent ( 0.50 %). The Company’s obligations under the Amended 2022 Revolver are secured by substantially all of the Company’s assets, excluding its intellectual property, which is subject to a negative pledge. The revolving line of credit under the Amended 2022 Revolver terminates on November 2, 2025.​Pursuant to the Amended 2022 Revolver, SVB waived filing any legal action or instituting or enforcing any rights and remedies it may have had against the Company in connection with the Company’s failing to maintain all of its operating accounts, depository accounts and excess cash with SVB, as previously required prior to the effectiveness of the Amended 2022 Revolver. ​ 22
| ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | June 30, |
| ​ | 2023 | 2022 |
| Warrants to purchase common stock | ​ | 92,703 | ​ | 92,703 |
| Options to purchase common stock | ​ | 2,499,439 | 2,764,916 |
| Performance stock units | ​ | 53,794 | ​ | — |
| Restricted stock units | ​ | 1,867,917 | ​ | 254,482 |
| ​ | 4,513,853 | 3,112,101 |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended June 30, | ​ | Six Months Ended June 30, | ​ |
| ​ | 2023 | 2022 | 2023 | 2022 | ​ |
| Cost of revenue | ​ | $ | 140 | ​ | $ | 86 | ​ | $ | 255 | ​ | $ | 149 | ​ |
| Research and development expenses | ​ | ​ | 732 | ​ | 421 | ​ | ​ | 1,327 | ​ | 681 | ​ |
| Selling, general and administrative expenses | ​ | ​ | 1,706 | ​ | 1,387 | ​ | ​ | 3,162 | ​ | 2,353 | ​ |
| ​ | ​ | $ | 2,578 | ​ | $ | 1,894 | ​ | $ | 4,744 | ​ | $ | 3,183 | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Three Months Ended June 30, | ​ | Six Months Ended June 30, |
| ​ | 2023 | 2022 | ​ | 2023 | 2022 |
| Operating lease cost | ​ | $ | 485 | ​ | $ | 583 | ​ | $ | 969 | ​ | $ | 1,165 |
| Short-term lease cost | ​ | 16 | ​ | 11 | ​ | ​ | 32 | ​ | 20 |
| Variable lease cost | ​ | 27 | ​ | 2 | ​ | ​ | 54 | ​ | 4 |
| ​ | ​ | $ | 528 | ​ | $ | 596 | ​ | $ | 1,055 | ​ | $ | 1,189 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Six Months Ended June 30, |
| ​ | 2023 | 2022 |
| Cash paid for amounts included in the measurement of operating lease liabilities | ​ | $ | 961 | ​ | $ | 894 |
| Operating lease liabilities arising from obtaining right-of-use assets | ​ | $ | 3,014 | ​ | $ | — | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | June 30, | ​ | December 31, |
| ​ | 2023 | ​ | 2022 |
| Weighted-average remaining lease term - operating leases (in years) | ​ | 4.25 | ​ | 2.75 |
| Weighted-average discount rate - operating leases | 8.5 | % | 9.5 | % |
| ​ | ​ | ​ | ​ |
| 2023 (six months) | ​ | $ | 1,156 |
| 2024 | ​ | 2,431 |
| 2025 | ​ | 2,001 |
| 2026 | ​ | 580 |
| 2027 | ​ | ​ | 594 |
| Thereafter | ​ | 1,347 |
| Total future minimum lease payments | ​ | 8,109 |
| Less: imputed interest | ​ | ( 1,287 ) |
| Total operating lease liabilities | ​ | $ | 6,822 |

401(k) Savings PlanThe Company has a defined-contribution savings plan under Section 401(k) of the Internal Revenue Code. This plan covers substantially all employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pre-tax basis. Company contributions to the plan may be made at the discretion of the board of directors. On October 1, 2021, the Company commenced an employer match program whereby the Company matches 100 % of the first 3 % that each employee contributes to the plan, capped at a maximum of $ 3,500 per year per employee. During the six months ended June 30, 2023 and 2022, the Company made $ 0.3 million, respectively, in contributions to the plan. Contingent Consideration – Earnout and Pension LiabilityThe Company agreed to pay three milestone based earnouts under the Trace purchase agreement for the total potential payout of $ 2.0 million. Milestones are based on target revenues and technical integration of Trace systems and knowledge and range to June 30, 2024. During the six months ended June 30, 2023, the Company received notice that the pension obligation had been transferred and no longer in Trace’s name and therefore the Company released the $ 0.9 million assignment of the pension liability. The Trace acquisition consideration withheld in respect of the pension plan was paid out to the sellers in April 2023. See Note 13, Acquisition. ​Indemnification AgreementsIn the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, business partners and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with its executive officers and members of its board of directors that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or services as directors or officers. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. To date, the Company has not incurred any material costs as a result of such indemnifications. The Company is not currently aware of any indemnification claims and had not accrued any liabilities related to such obligations in its condensed consolidated financial statements as of June 30, 2023.Legal ProceedingsThe Company is not currently party to any material legal proceedings. At each reporting date, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company expenses as incurred the costs related to such legal proceedings.​ ​ 13. AcquisitionOn August 3, 2022, the Company entered into a share purchase and transfer agreement and completed its acquisition of 100 % of the registered share capital of Trace, for total purchase price consideration of $ 17.3 million, comprised of (i) a $ 14.4 million initial cash payment, (ii) up to $ 2.0 million contingent cash consideration upon achievement of certain milestones over a twenty four month period and (iii) $ 0.9 million contingent pension liability holdback to be released upon discharging or transferring of such liability from Trace. Trace is a leading provider of online analysis systems for biotech applications in research, development and production. Trace’s products are used for monitoring and controlling of complex processes in industrial pharmaceutical productions under continuous measurement conditions. The Company expects to integrate acquired sampling technology within future product offerings. 26
| ​ | ​ | ​ | ​ |
| Consideration Transferred: | ​ | ​ | ​ |
| Cash paid | ​ | $ | 14,400 |
| Net cash and working capital adjustment | ​ | ​ | 113 |
| Contingent consideration - pension liability | ​ | ​ | 900 |
| Contingent consideration - earnout | ​ | ​ | 737 |
| Total consideration transferred | ​ | $ | 16,150 |
| ​ | ​ | ​ | ​ |
| Assets acquired and liabilities assumed: | ​ | ​ | ​ |
| Cash and cash equivalents | ​ | $ | 638 |
| Accounts receivable | ​ | ​ | 168 |
| Inventory | ​ | ​ | 364 |
| Prepaid expenses and other current assets | ​ | ​ | 11 |
| Property and equipment, net | ​ | ​ | 32 |
| Intangible assets | ​ | ​ | ​ |
| Customer Relationships | ​ | ​ | 3,142 |
| Developed Technology | ​ | ​ | 4,967 |
| Software | ​ | ​ | 254 |
| Trade Name | ​ | ​ | 61 |
| Goodwill | ​ | ​ | 9,566 |
| Indemnification assets | ​ | ​ | 917 |
| Pension liability | ​ | ​ | ( 917 ) |
| Accounts payable, accrued expenses and other current liabilities | ​ | ​ | ( 306 ) |
| Deferred tax liability, net | ​ | ​ | ( 2,672 ) |
| Other liabilities | ​ | ​ | ( 75 ) |
| Total | ​ | $ | 16,150 |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | June 30, | ​ | December 31, |
| ​ | 2023 | 2022 |
| Long-lived assets(1) by country: | ​ | ​ | ​ | ​ | ​ | ​ |
| United States | ​ | $ | 9,555 | ​ | $ | 7,852 |
| All other countries | ​ | ​ | 521 | ​ | 63 |
| Total long-lived assets | ​ | $ | 10,076 | ​ | $ | 7,915 |
| (1) | Long-lived assets exclude goodwill, other intangible assets and other assets. |

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on March 15, 2023 (“2022 Form 10-K”). Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report on Form 10-Q, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. As a result of many factors, including those factors set forth in “Item 1.A. Risk Factors” section of our 2022 Form 10-K, our actual results could differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Overview
We have developed an innovative suite of purpose-built handheld and desktop devices for point-of-need chemical and biochemical analysis. Leveraging our proprietary mass spectrometry, or Mass Spec, microfluidics, and analytics and machine learning technologies, we make devices that are significantly smaller and more accessible than conventional laboratory instruments. Our 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.
We create simplified measurement devices that our customers can use as accurate tools where and when their work needs to be done, rather than overly complex and centralized analytical instrumentation. We believe the insights and answers our devices provide will accelerate workflows, reduce costs, and offer transformational opportunities for our end users.
Front-line workers rely upon our handheld devices to combat the opioid crisis and detect counterfeit pharmaceuticals and illicit materials in the air or on surfaces at levels 1,000 times below their lethal dose. Our desktop devices are accelerating development and production of biotherapeutics by identifying and quantifying extracellular species in bioprocessing critical to cell health and productivity. They sit alongside bioreactors and fermenters producing drug candidates, functional proteins, cell and gene therapies, and synthetic biology derived products. We believe the insights and answers our devices provide accelerate workflows, reduce costs, and offer transformational opportunities for our end users. The term “products” as used in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” refers to the MX908, Rebel, ZipChip Interface, Maven and related sampling devices.
On August 3, 2022, we entered into a share purchase and transfer agreement and completed our acquisition of 100% of the registered share capital of Trace, for a total purchase price consideration of $17.3 million, comprised of (i) a $14.4 million initial cash payment, (ii) up to $2.0 million contingent cash consideration upon achievement of certain milestones over a twenty-four-month period and (iii) $0.9 million contingent pension liability holdback to be released upon discharging or transferring of such liability from Trace. Trace is a leading provider of online analysis systems for biotech applications in research, development and production. Trace’s products are used for monitoring and control of complex processes in industrial pharmaceutical productions under continuous measurement conditions. We expect to integrate acquired sampling technology within future product offerings.
28
Since our inception, we have incurred significant operating losses. Our ability to generate revenue sufficient to achieve profitability will depend on the successful further development and commercialization of our products. We generated revenue of $21.6 million and $19.4 million for the six months ended June 30, 2023 and 2022, respectively, and incurred net losses of $21.9 million and $17.5 million for those same periods. As of June 30, 2023, we had an accumulated deficit of $156.1 million. We expect to continue to incur net losses as we focus on growing commercial sales of our products in both the United States and international markets, including growing our sales teams, scaling our manufacturing operations, continuing research and development efforts to develop new products and further enhance our existing products. Further, we expect to incur additional costs associated with operating as a public company. As a result, we may need additional funding for expenses related to our operating activities, including selling, general and administrative expenses and research and development expenses.Because of the numerous risks and uncertainties associated with product development and commercialization, we are unable to accurately predict the timing or amount of increased expenses or when, or if, we will be able to achieve or maintain profitability. Until such time, if ever, as we can generate substantial revenue sufficient to achieve profitability, we expect to finance our operations through a combination of equity offerings, debt financings and strategic alliances. We may be unable to raise additional funds or enter into such other agreements or arrangements when needed on favorable terms, or at all. If we are unable to raise capital or enter into such agreements as, and when, needed, we may have to significantly delay, scale back or discontinue the further development and commercialization efforts of one or more of our products, or may be forced to reduce or terminate our operations.We believe that our existing cash and cash equivalents and revenue from product and service will enable us to fund our operating expenses, capital expenditure requirements and debt service payments for at least the next 12 months. We have based this estimate on assumptions that may prove to be wrong, and we could exhaust our available capital resources sooner than we expect. See “Liquidity and Capital Resources.”Global Economic ConditionsWe are continuing to closely monitor macroeconomic impacts, including, but not limited to, continued inflationary and interest rate pressures, challenging capital markets and financing alternatives and developments affecting financial institutions on our business, results of operations and financial results.​We are closely monitoring continued economic uncertainty in the United States and abroad, including volatility in the global markets and the rise and fluctuations in inflation and interest rates. These developments and the potential worsening of other macro-economic conditions present risks for us, and our suppliers and customers. For example, general inflation in the United States, EMEA and other geographies has risen to levels not experienced in recent decades, which has led to rising prices for our raw materials and other inputs, as well as rising salaries and travel expenses, which could continue to negatively impact our business by increasing our cost of sales and operating expenses. General inflation could also negatively impact our business if it leads to spending pressure and decreased available capital for our customers to deploy to purchase our products and services. In addition, the United States Federal Reserve has raised, and may again raise, interest rates in response to concerns about inflation. Inflation, together with increased interest rates, may cause our customers to reduce or delay orders for our goods and services thereby causing a decrease in or change in timing of sales of our products and services. The impact of future inflation and interest rate fluctuations on the results of our operations cannot be accurately predicted.There also continues to be a challenging environment for the public capital markets and other financing alternatives to raise cash, which, together with inflationary and interest rates pressures, may be contributing to more cautious spending by our customers. Certain of our pharmaceutical and biotechnology customers, including bioprocessing customers, may evaluate their inventory levels, cash on hand and path to profitability, and institute cost controls and take other actions to reduce or delay purchases of our products and services. We cannot accurately predict the extent of the full impact on the budgets and capital expenditures of our customers, or the timing of the normalization of customer purchasing patterns. ​We are also monitoring ongoing events involving limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions or other companies in the financial services industry or the financial services industry generally, including SVB, being closed by the California Department of Financial Protection and Innovation, which appointed the FDIC as receiver on March 10, 2023, Signature Bank being closed by its New York State Department of 29
Financial Services on March 12, 2023, and other financial institutions. We are also monitoring the impacts that these events may have on our customers and vendors. Despite the steps taken to date by U.S. agencies to protect depositors, and the subsequent acquisition of SVB by First-Citizens Bank & Trust Company, the follow-on effects of the events surrounding the SVB and Signature Bank failures and pressure on other banks are unknown, and could include failures of other financial institutions to which we may encounter direct or indirect exposure. The extent of such impacts is uncertain, and there may be additional risks that we have not yet identified. We continue to monitor the situation on U.S. financial institutions and potential impact on our business.​While conditions related to the COVID-19 pandemic generally have improved further in the first half of 2023 compared to fiscal 2022, and our business operations are no longer significantly impacted, we will continue to monitor supply chain risks and other potential lingering impacts. On April 10, 2023, the U.S. announced that the public health emergency related to COVID-19 ended. The Company does not anticipate significant impact from the expiration of the public health emergency.​While it is difficult to predict all of the impacts these global economic events and developments affecting financial institutions, and rising inflation and interest rates will have on our business and to predict the effects of these factors on our customers’ spending in the near term, we believe the long-term opportunity that we see for our products and services remain unchanged.For further discussion of the possible impacts of these global factors and other risks on our business, see Part I, Item 1A, “Risk Factors,” of our 2022 Form 10-K.Factors Affecting Our PerformanceWe believe that our financial performance has been and in the foreseeable future will continue to be primarily driven by the following factors. While each of these factors presents significant opportunities for our business, they also pose important challenges that we must successfully address to sustain our growth and improve our results of operations. Our ability to successfully address the factors below is subject to various risks and uncertainties.Device salesOur financial performance has largely been driven by, and in the future will continue to be impacted by, the rate of sales of our handheld and desktop devices. Management focuses on device sales as an indicator of current business success and a leading indicator of likely future recurring revenue from consumables and services. We expect our device sales to continue to grow as we increase penetration in our existing markets and expand into, or offer new features and solutions that appeal to, new markets.We plan to grow our device sales in the coming years through multiple strategies including expanding our sales efforts domestically and globally and continuing to enhance the underlying technology and applications for life sciences research related to our Rebel, ZipChip Interface, Maven and related sampling devices. We regularly solicit feedback from our customers and focus our research and development efforts on enhancing our devices and enabling our customers to use additional applications that address their needs, which we believe in turn helps to drive additional sales of our devices and consumables.Our sales process varies considerably depending upon the type of customer to whom we are selling. Historically, our handheld devices have been used by state, federal and foreign governments and governmental agencies. Our sales process with government customers is often long and involves multiple levels of approvals, testing and, in some cases, trials. Device orders from a government customer are typically large orders and can be impacted by the timing of their capital budgets. As a result, the revenue for our handheld devices can vary significantly from period-to-period and has been and may continue to be concentrated in a small number of customers in any given period.Our desktop devices are typically used by the pharmaceutical, biotechnology and academia markets. Our sales cycles within these markets tend to vary based on the size of the customer and the number of devices they purchase. Our shortest sales cycles are typically for small laboratories and individual researchers where, in some cases, we receive purchase orders from these customers within three months. Our sales process with other institutions can be longer with most customers submitting purchase orders within six to twelve months. Given the variability of our sales cycle, we have in the past experienced, and likely will in the future experience, fluctuations in our desktop device sales on a period-to-period basis. 30
| ● | Testing—a customer is actively engaged with internal or external testing of our products. This may include an onsite or virtual demonstration with a salesperson, a customer submitting samples for testing in one of our facilities or testing by a third party. |
| ● | Trials—a customer has committed to a trial of one of our products, which may include a defined period to assess functionality of the device in their operational environment (in the field or onsite within the customer’s facility). |
| ● | Pilot—a customer commits to the purchase of an initial quantity of devices to deploy in their operational environment to assess a broader opportunity that may grow to tens or hundreds of devices. |

| ● | Deployment—a customer has completed testing, a trial, and/or a pilot and intends to roll out the technology across their enterprise (either at a site or throughout the entire organization). |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended June 30, | ​ | Six Months Ended June 30, | ​ |
| ​ | 2023 | 2022 | 2023 | 2022 | ​ |
| Product Placements: | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Handheld | 107 | 102 | 169 | 165 |
| Desktop | 15 | 22 | 31 | 42 |
| ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | June 30, | ​ |
| ​ | 2023 | 2022 | ​ |
| Cumulative Product Placements: | ​ | ​ | ​ | ​ |
| Handheld | 2,189 | 1,815 |
| Desktop | 401 | 327 |
| ● | Handheld devices—MX908; and |
| ● | Desktop devices—Rebel and ZipChip Interface, Maven and related sampling devices. |
| ● | MX908—accessories and swabs; |
| ● | Rebel—consumables kit with a microfluidic chip and standards; |

| ● | ZipChip Interface—microfluidic chip, reagent and assay kits; and |
| ● | Maven and related sampling devices—probes, tubing sets and accessories. |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended June 30, | ​ | Six Months Ended June 30, |
| ​ | 2023 | 2022 | 2023 | 2022 |
| Product and service revenue: | ​ | ​ | ​ | ​ |
| Device sales revenue | ​ | $ | 7,959 | ​ | $ | 7,755 | ​ | $ | 13,042 | ​ | $ | 13,287 |
| Recurring revenue | ​ | 3,990 | ​ | 2,853 | ​ | 8,169 | ​ | 5,350 |
| Total product and service revenue | ​ | 11,949 | ​ | 10,608 | ​ | 21,211 | ​ | 18,637 |
| Contract revenue | ​ | 145 | ​ | 498 | ​ | 370 | ​ | 775 |
| Total revenue | ​ | $ | 12,094 | ​ | $ | 11,106 | ​ | $ | 21,581 | ​ | $ | 19,412 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Three Months Ended June 30, | ​ | Six Months Ended June 30, | ​ |
| ​ | 2023 | 2022 | 2023 | 2022 | ​ |
| Government | $ | 8,812 | ​ | $ | 7,002 | ​ | $ | 14,992 | ​ | $ | 11,719 | ​ |
| Pharmaceutical/Biotechnology | ​ | 3,106 | ​ | 3,577 | ​ | ​ | 6,158 | ​ | 6,705 | ​ |
| Academia and other | ​ | 31 | ​ | 29 | ​ | ​ | 61 | ​ | 213 | ​ |
| Total product and service revenue | $ | 11,949 | ​ | $ | 10,608 | ​ | $ | 21,211 | ​ | $ | 18,637 | ​ |

| ● | employee-related expenses, including salaries, related benefits and stock-based compensation expense for employees engaged in research and hardware and software development functions; |
| ● | the cost of maintaining and improving our product designs, including third party development costs for new products and materials for prototypes; |
| ● | research materials and supplies; and |
| ● | facilities, depreciation and other expenses, which include direct and allocated expenses for rent and maintenance of facilities and insurance. |

demonstration equipment, broaden our customer base and grow our business. We also anticipate that we will incur increased accounting, audit, legal, regulatory, compliance and director and officer insurance costs as well as investor and public relations expenses associated with operating as a public company.​Other Income (Expense)Interest incomeInterest income consists of interest earned on our invested cash balances.​Interest expenseInterest expense consists of interest expense associated with outstanding borrowings under our loan and security agreements and the amortization of deferred financing costs and debt discounts associated with such arrangements. In the three and six months ended June 30, 2023, our interest expense also includes our loss on debt extinguishment resulting from the write off of the initial fees incurred and potential termination fees related to our 2022 Revolver.​Other income (expense), netOther income (expense), net consists of miscellaneous other income and expense unrelated to our core operations.​Provision for Income TaxesWe have not recorded any U.S. federal or state income tax benefits for the net operating losses we have incurred in each year or for the research and development tax credits we generated in the United States and have recorded a full valuation allowance against our net deferred assets, as we believe, based upon the weight of available evidence, that it is more likely than not that all of our net operating loss carryforwards and tax credits will not be realized. As of December 31, 2022, we had gross federal and state operating loss carryforwards of $92.3 million and $64.0 million, respectively, which may be available to offset future taxable income and begin to expire in 2032 and 2025, respectively, of which $57.9 million of federal gross operating losses do not expire. As of December 31, 2022, we also had U.S. federal and state research and development tax credit carryforwards of $5.9 million and $2.8 million, respectively, which may be available to offset future tax liabilities and begin to expire in 2032 and 2029, respectively.​35
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended June 30, | ​ | ​ | ​ |
| ​ | 2023 | 2022 | Change |
| ​ | ​ | (in thousands) |
| Revenue: | ​ | ​ | ​ |
| Product revenue | ​ | $ | 9,595 | ​ | $ | 9,082 | ​ | $ | 513 |
| Service revenue | ​ | ​ | 2,354 | ​ | ​ | 1,526 | ​ | ​ | 828 |
| Contract revenue | ​ | 145 | ​ | 498 | ​ | (353) |
| Total revenue | ​ | 12,094 | ​ | 11,106 | ​ | 988 |
| Cost of revenue: | ​ | ​ | ​ |
| Product cost of revenue | ​ | 4,800 | ​ | 3,304 | ​ | 1,496 |
| Service cost of revenue | ​ | ​ | 1,448 | ​ | ​ | 1,057 | ​ | ​ | 391 |
| Contract cost of revenue | ​ | 52 | ​ | 111 | ​ | (59) |
| Total cost of revenue | ​ | 6,300 | ​ | 4,472 | ​ | 1,828 |
| Gross profit | ​ | 5,794 | ​ | 6,634 | ​ | (840) |
| Operating expenses: | ​ | ​ | ​ |
| Research and development | ​ | 5,525 | ​ | 4,293 | ​ | 1,232 |
| Selling, general and administrative | ​ | 11,208 | ​ | 10,710 | ​ | 498 |
| Total operating expenses | ​ | 16,733 | ​ | 15,003 | ​ | 1,730 |
| Loss from operations | ​ | (10,939) | ​ | (8,369) | ​ | (2,570) |
| Other income (expense): | ​ | ​ | ​ |
| Interest income | ​ | ​ | 1,689 | ​ | ​ | 293 | ​ | ​ | 1,396 |
| Interest expense | ​ | — | ​ | (15) | ​ | 15 |
| Other expense, net | ​ | (167) | ​ | (8) | ​ | (159) |
| Total other income, net | ​ | 1,522 | ​ | 270 | ​ | 1,252 |
| Loss from operations before income taxes | ​ | ​ | (9,417) | ​ | ​ | (8,099) | ​ | ​ | (1,318) |
| Benefit for income taxes | ​ | ​ | 71 | ​ | ​ | — | ​ | ​ | 71 |
| Net loss | ​ | $ | (9,346) | ​ | $ | (8,099) | ​ | $ | (1,247) |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended June 30, | ​ | Change | ​ |
| ​ | 2023 | 2022 | Amount | % | ​ |
| ​ | ​ | (dollars in thousands) | ​ |
| Product revenue | ​ | $ | 9,595 | ​ | $ | 9,082 | ​ | $ | 513 | 6 | % |
| Product cost of revenue | ​ | 4,800 | ​ | 3,304 | ​ | 1,496 | 45 | % |
| Gross profit | ​ | $ | 4,795 | ​ | $ | 5,778 | ​ | $ | (983) | (17) | % |
| Gross profit margin | ​ | 50 | % | 64 | % | (14) | % | ​ | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended June 30, | ​ | Change | ​ |
| ​ | 2023 | 2022 | Amount | % | ​ |
| ​ | ​ | (dollars in thousands) | ​ |
| Service revenue | ​ | $ | 2,354 | ​ | $ | 1,526 | ​ | $ | 828 | 54 | % |
| Service cost of revenue | ​ | 1,448 | ​ | 1,057 | ​ | 391 | 37 | % |
| Gross profit | ​ | $ | 906 | ​ | $ | 469 | ​ | $ | 437 | 93 | % |
| Gross profit margin | ​ | 38 | % | 31 | % | 7 | % | ​ | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended June 30, | ​ | Change | ​ |
| ​ | 2023 | 2022 | Amount | % | ​ |
| ​ | ​ | (dollars in thousands) | ​ |
| Contract revenue | ​ | $ | 145 | ​ | $ | 498 | ​ | $ | (353) | (71) | % |
| Contract cost of revenue | ​ | 52 | ​ | 111 | ​ | (59) | (53) | % |
| Gross profit | ​ | $ | 93 | ​ | $ | 387 | ​ | $ | (294) | (76) | % |
| Gross profit margin | ​ | ​ | 64 | % | ​ | 78 | % | ​ | (14) | % | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended June 30, | ​ | Change | ​ |
| ​ | 2023 | 2022 | Amount | % | ​ |
| ​ | ​ | (dollars in thousands) | ​ |
| Research and development expenses | ​ | $ | 5,525 | ​ | $ | 4,293 | $ | 1,232 | 29 | % |
| Percentage of total revenue | ​ | 46 | % | 39 | % | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended June 30, | ​ | Change | ​ |
| ​ | 2023 | 2022 | Amount | % | ​ |
| ​ | ​ | (dollars in thousands) | ​ |
| Selling, general and administrative expenses | ​ | $ | 11,208 | ​ | $ | 10,710 | ​ | $ | 498 | 5 | % |
| Percentage of total revenue | ​ | 93 | % | 96 | % | ​ | ​ | ​ | ​ | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Six Months Ended June 30, | ​ | ​ | ​ |
| ​ | 2023 | 2022 | Change |
| ​ | ​ | (in thousands) |
| Revenue: | ​ | ​ | ​ | ​ | ​ | ​ |
| Product revenue | ​ | $ | 16,617 | ​ | $ | 15,589 | ​ | $ | 1,028 |
| Service revenue | ​ | ​ | 4,594 | ​ | ​ | 3,048 | ​ | ​ | 1,546 |
| Contract revenue | ​ | 370 | ​ | 775 | ​ | (405) |
| Total revenue | ​ | 21,581 | ​ | 19,412 | ​ | 2,169 |
| Cost of revenue: | ​ | ​ | ​ |
| Product cost of revenue | ​ | 8,586 | ​ | 6,276 | ​ | 2,310 |
| Service cost of revenue | ​ | ​ | 2,718 | ​ | ​ | 2,126 | ​ | ​ | 592 |
| Contract cost of revenue | ​ | 99 | ​ | 247 | ​ | (148) |
| Total cost of revenue | ​ | 11,403 | ​ | 8,649 | ​ | 2,754 |
| Gross profit | ​ | 10,178 | ​ | 10,763 | ​ | (585) |
| Operating expenses: | ​ | ​ | ​ |
| Research and development | ​ | 10,923 | ​ | 8,198 | ​ | 2,725 |
| Selling, general and administrative | ​ | 23,211 | ​ | 20,455 | ​ | 2,756 |
| Total operating expenses | ​ | 34,134 | ​ | 28,653 | ​ | 5,481 |
| Loss from operations | ​ | (23,956) | ​ | (17,890) | ​ | (6,066) |
| Other income: | ​ | ​ | ​ |
| Interest income | ​ | ​ | 2,706 | ​ | ​ | 464 | ​ | ​ | 2,242 |
| Interest expense | ​ | (551) | ​ | (35) | ​ | (516) |
| Other expense, net | ​ | ​ | (200) | ​ | (53) | ​ | (147) |
| Total other income, net | ​ | 1,955 | ​ | 376 | ​ | 1,579 |
| Loss from operations before income taxes | ​ | ​ | (22,001) | ​ | ​ | (17,514) | ​ | ​ | (4,487) |
| Benefit for income taxes | ​ | ​ | 122 | ​ | ​ | — | ​ | ​ | 122 |
| Net loss | ​ | $ | (21,879) | ​ | $ | (17,514) | ​ | $ | (4,365) |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Six Months Ended June 30, | ​ | Change |
| ​ | 2023 | 2022 | Amount | % |
| ​ | ​ | (dollars in thousands) |
| Product revenue | ​ | $ | 16,617 | ​ | $ | 15,589 | ​ | $ | 1,028 | 7 | % |
| Product cost of revenue | ​ | 8,586 | ​ | 6,276 | ​ | 2,310 | 37 | % |
| Gross profit | ​ | $ | 8,031 | ​ | $ | 9,313 | ​ | $ | (1,282) | (14) | % |
| Gross profit margin | ​ | 48 | % | 60 | % | (12) | % | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Six Months Ended June 30, | ​ | Change |
| ​ | 2023 | 2022 | Amount | % |
| ​ | ​ | (dollars in thousands) |
| Service revenue | ​ | $ | 4,594 | ​ | $ | 3,048 | ​ | $ | 1,546 | 51 | % |
| Service cost of revenue | ​ | 2,718 | ​ | 2,126 | ​ | 592 | 28 | % |
| Gross profit | ​ | $ | 1,876 | ​ | $ | 922 | ​ | $ | 954 | 103 | % |
| Gross profit margin | ​ | 41 | % | 30 | % | 11 | % | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Six Months Ended June 30, | ​ | Change |
| ​ | 2023 | 2022 | Amount | % |
| ​ | ​ | (dollars in thousands) |
| Contract revenue | ​ | $ | 370 | ​ | $ | 775 | ​ | $ | (405) | (52) | % |
| Contract cost of revenue | ​ | 99 | ​ | 247 | ​ | (148) | (60) | % |
| Gross profit | ​ | $ | 271 | ​ | $ | 528 | ​ | $ | (257) | (49) | % |
| Gross profit margin | ​ | 73 | % | ​ | 68 | % | ​ | 5 | % | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Six Months Ended June 30, | ​ | Change |
| ​ | 2023 | 2022 | Amount | % |
| ​ | ​ | (dollars in thousands) |
| Research and development expenses | ​ | $ | 10,923 | ​ | $ | 8,198 | ​ | $ | 2,725 | 33 | % |
| Percentage of total revenue | ​ | 51 | % | 42 | % | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Six Months Ended June 30, | ​ | Change |
| ​ | 2023 | 2022 | Amount | % |
| ​ | ​ | (dollars in thousands) |
| Selling, general and administrative expenses | ​ | $ | 23,211 | ​ | $ | 20,455 | ​ | $ | 2,756 | 13 | % |
| Percentage of total revenue | ​ | 108 | % | 105 | % | ​ |
| ● | market uptake of our products and growth into new and existing markets; |
| ● | the cost of our research and development efforts to expand the applications of our current devices and to create enhanced products with our platform of technologies; |

| ● | the cost of expanding our commercial operations, including distribution capabilities, and accelerating planned investments, such as hiring additional support, service, and sales management in Europe, Asia Pacific and Latin America, bolstering our infrastructure in these regions; |
| ● | the cost of acquiring complementary businesses, products, services or technologies, when and if required; |
| ● | the success of our existing collaborations and our ability to enter additional collaborations in the future; |
| ● | the effect of competing technological and market developments; and |
| ● | the level of our selling, general and administrative expenses. |

million or (ii) nine (9) months of cash burn. The 2022 Revolver contained customary representations and warranties, as well as certain non-financial covenants, including limitations on, among other things, our ability to change the principal nature of our business, dispose of our business or property, engage in any change of control transaction, merge or consolidate with any other entity or to acquire all or substantially all the capital stock or property of another entity, incur additional indebtedness or liens, pay dividends or make other distributions on capital stock, redeem our capital stock, engage in transactions with affiliates or otherwise encumber our intellectual property, in each case, subject to customary exceptions.​On March 10, 2023, SVB, one of our financial institutions, was closed by the California Department of Financial Protection and Innovation, which appointed the FDIC as receiver. As of March 31, 2023, the Company had transferred substantially all its cash and cash equivalents away from SVB and deposited the funds with new financial institutions. As a result of the transfer of the Company’s cash, cash equivalents and marketable securities, the Company was in default, and continued to be in default as of June 30, 2023, of its financial covenants under the 2022 Revolver. The Company recorded a loss on extinguishment of $0.5 million in the three months ended March 31, 2023, which was included in interest expense in the condensed consolidated statements of operations and comprehensive loss. ​On August 4, 2023, the Company entered into the Amended 2022 Revolver, by and between, the Company, as borrower, and SVB, as lender. The Amended 2022 Revolver provides for a revolving line of credit of up to $10.0 million. The Company is permitted to make interest-only payments on the revolving line of credit through November 2, 2025, at which time all outstanding indebtedness shall be immediately due and payable. The outstanding principal amount of any advance shall accrue interest at a floating rate per annum equal to the greater of (i) four and one-half percent (4.50%) and (ii) the “prime rate” as published in The Wall Street Journal for the relevant period minus one-half percent (0.50%). The Company’s obligations under the Amended 2022 Revolver are secured by substantially all of the Company’s assets, excluding its intellectual property, which is subject to a negative pledge. The revolving line of credit under the Amended 2022 Revolver terminates on November 2, 2025.​Pursuant to the Amended 2022 Revolver, SVB waived filing any legal action or instituting or enforcing any rights and remedies it may have had against the Company in connection with the Company’s failing to maintain all of its operating accounts, depository accounts and excess cash with SVB, as previously required prior to the effectiveness of the Amended 2022 Revolver. ​The Amended 2022 Revolver also contains certain financial covenants, including a requirement that the Company maintain $20.0 million on account at or through SVB and the amount of unrestricted and unencumbered cash minus advances under the Amended 2022 Revolver, is not less than the amount equal to the greater of (i) $10.0 million or (ii) nine (9) months of cash burn. The Amended 2022 Revolver contains customary representations and warranties, as well as certain non-financial covenants, including limitations on, among other things, the Company’s ability to change the principal nature of its business, dispose of the Company’s business or property, engage in any change of control transaction, merge or consolidate with any other entity or to acquire all or substantially all the capital stock or property of another entity, incur additional indebtedness or liens, pay dividends or make other distributions on capital stock, redeem the Company’s capital stock, engage in transactions with affiliates or otherwise encumber the Company’s intellectual property, in each case, subject to customary exceptions.​We may seek additional funding through private or public equity financings, debt financings, collaborations, strategic alliances and marketing, distribution or licensing arrangements. We cannot assure you that we will be able to obtain additional funds on acceptable terms, or at all. If we raise additional funds by issuing equity or equity-linked securities, our stockholders may experience dilution. Future debt financing, if available, may involve covenants, in addition to our existing covenants, restricting our operations or our ability to incur additional debt or potentially limiting our ability to obtain new debt financing or the refinance of our existing debt. Any debt or equity financing that we raise may contain terms that are not favorable to us or our stockholders. If we raise additional funds through collaboration and licensing arrangements with third parties, it may be necessary to relinquish some rights to our technologies or our products, or grant licenses on terms that are not favorable to us. If we do not have or are not able to obtain sufficient funds, we may have to delay development or commercialization of our products. We also may have to reduce marketing, customer support or other resources devoted to our products or cease operations. ​44
| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Six Months Ended June 30, |
| ​ | 2023 | 2022 |
| ​ | ​ | (in thousands) |
| Cash used in operating activities | ​ | $ | (18,529) | ​ | $ | (10,876) |
| Cash used in investing activities | ​ | (21,121) | ​ | (689) |
| Cash (used in) provided by financing activities | ​ | (15,782) | ​ | 597 |
| Effect of foreign exchange rate changes on cash and cash equivalents | ​ | ​ | 6 | ​ | ​ | — |
| Net decrease in cash, cash equivalents and restricted cash | ​ | $ | (55,426) | ​ | $ | (10,968) |

For a further discussion of our critical accounting policies, please refer to Note 2 to our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q and our 2022 Report on Form 10-K. There were no significant changes to our critical accounting policies for the six months ended June 30, 2023.​Recently Issued Accounting Pronouncements​A description of recently issued accounting pronouncements that may potentially impact our financial position and results of operations is disclosed in Note 2 to our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q and is incorporated herein by reference.​
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
We are a smaller reporting company, as defined in Rule 12b-2 under the Exchange Act for this reporting period and are not required to provide the information required under this item.
​
Item 4. Controls and Procedures.
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a- 15(e) and 15d- 15(e) under the Exchange Act), as of the end of the period covered by this Quarterly Report on Form 10-Q. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Our management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and our management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on the evaluation of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q, our principal executive officer and principal financial officer have concluded that as of such date, our disclosure controls and procedures were effective at a reasonable assurance level.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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46
PART II—OTHER INFORMATION
Item 1. Legal Proceedings.
We are not currently party to any material legal proceedings.
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Item 1A. Risk Factors.
Our operations and financial results are subject to various risks and uncertainties. A detailed discussion of the risks that affect our business is included in the section titled “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on March 15, 2023, or 2022 Form 10-K. There have been no material changes to our risk factors during the three months ended June 30, 2023 from those discussed in our 2022 Form 10-K.
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Mine Safety Disclosures.
None.
Item 5. Other Information.
None.
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Item 6. Exhibits.
​
| ​ |
| ExhibitNumber | Description |
| ​ | ​ | ​ |
| 31.1 | ​ | Certification of Chief Executive Officer of the Registrant Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
| ​ | ​ | ​ |
| 31.2 | ​ | Certification of Chief Financial Officer of the Registrant Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
| ​ | ​ | ​ |
| 32.1† | ​ | Certification of Chief Executive Officer of the Registrant Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
| ​ | ​ | ​ |
| 32.2† | ​ | Certification of Chief Financial Officer of the Registrant Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 ​​ |
| 10.18 | ​ | Default Waiver and First Amendment to Loan and Security Agreement, dated as of August 4, 2023, by and between 908 Devices Inc. and Silicon Valley Bank, a division of First-Citizens Bank & Trust Company (successor by purchase to the Federal Deposit Insurance Corporation as Receiver for Silicon Valley Bridge Bank, N.A. (as successor to Silicon Valley Bank)) (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (File No. 001-39815) filed with the SEC on August 8, 2023) ​​ |
| 101.INS | ​ | Inline XBRL Instance Document |
| ​ | ​ | ​ |
| 101.SCH | ​ | Inline XBRL Taxonomy Extension Schema Document |
| ​ | ​ | ​ |
| 101.CAL | ​ | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| ​ | ​ | ​ |
| 101.LAB | ​ | Inline XBRL Taxonomy Extension Labels Linkbase Document |
| ​ | ​ | ​ |
| 101.PRE | ​ | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| ​ | ​ | ​ |
| 101.DEF | ​ | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| ​ | ​ | ​ |
| 104 | ​ | Cover Page Data File (the cover page XBRL tags are embedded within the iXBRL document). |

| † | The certifications attached as Exhibits 32.1 and 32.2 that accompany this Quarterly Report on Form 10-Q, are not deemed filed with the Securities and Exchange Commission and are not to be incorporated by reference into any filing of 908 Devices Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Quarterly Report on Form 10-Q, irrespective of any general incorporation language contained in such filing. |

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48
| ​ | ​ | ​ | ​ |
| ​ | ​ | 908 DEVICES INC. |
| ​ | ​ | ​ | ​ |
| Date: August 8, 2023 | ​ | By: | /s/ Kevin J. Knopp, Ph.D. |
| ​ | ​ | Kevin J. Knopp, Ph.D.Chief Executive Officer(Principal Executive Officer) |
| ​ | ​ | ​ | ​ |
| Date: August 8, 2023 | ​ | By: | /s/ Joseph H. Griffith IV |
| ​ | ​ | Joseph H. Griffith IVChief Financial Officer(Principal Financial Officer) |


Question: What is the total potential amount, in millions, of tax that the company could save if it manages to apply all of its federal and state operating loss carryforwards and research and development tax credit carryforwards, with the federal and state income tax rates of 21% and 6% respectively?

Python solution:
def solution():
    # Define variables name and value
    federal_operating_loss_carryforward = 92.3  # in million
    state_operating_loss_carryforward = 64.0  # in million
    federal_RD_tax_credit_carryforward = 5.9  # in million
    state_RD_tax_credit_carryforward = 2.8  # in million
    federal_tax_rate = 0.21
    state_tax_rate = 0.06

    # Do math calculation to get the answer
    federal_tax_saving = (federal_operating_loss_carryforward + federal_RD_tax_credit_carryforward) * federal_tax_rate
    state_tax_saving = (state_operating_loss_carryforward + state_RD_tax_credit_carryforward) * state_tax_rate
    answer = federal_tax_saving + state_tax_saving
    return answer


Answer: 24.63