Company: RPID
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001380106-25-000058
Chunk: 114

Company: RAPID MICRO BIOSYSTEMS, INC.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 114
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 NOL carryforwards can be carried forward indefinitely. For additional information, see the risk factor entitled “Our ability to use our net operating losses and research and development tax credits to offset future taxable income or income tax liabilities are subject to certain limitations” and Note 11—Income taxes to our consolidated financial statements included elsewhere in this Annual Report on Form 10-K.

We have recorded a full valuation allowance against our net deferred tax assets at each balance sheet date because of uncertainty about future taxable income to permit use of the assets. 

64

Results of operations

Comparison of the years ended December 31, 2024 and 2023

Year EndedDecember 31,2024December 31,2023ChangeAmount%(dollars in thousands)Revenue:Product revenue$18,728 $14,805 $3,923 26.5 %Service revenue9,323 7,714 1,609 20.9 %Total revenue$28,051 $22,519 $5,532 24.6 %

Revenue

Product revenue increased by $3.9 million, or 26.5%, with the increase primarily attributable to an increase in Growth Direct system placements in 2024 as well as higher consumable shipment volumes due to an increase in cumulative validated Growth Direct systems. Additionally, higher selling prices for both consumables and systems as well as increased sales of other product were realized during the year.  

Service revenue increased by $1.6 million, or 20.9%. The increase was largely due to increased recurring revenue from service contracts due to our growing number of validated Growth Direct systems at customer sites as well as increases in validation service revenue.  

Costs of revenue

Year EndedDecember 31,2024December 31,2023ChangeAmount%(dollars in thousands)Cost of product revenue$21,041 $20,060 $981 4.9 %Cost of service revenue$7,119 $7,944 $(825)(10.4)%

Cost of product revenue increased by $1.0 million, or 4.9%. The increase was driven by costs related to higher volume of both Growth Direct system placements and consumable shipments. This increase was partially offset by a favorable mix impact of product sold as well as a reduction in our costs to manufacture our products.

Cost of service revenue decreased by $0.8 million, or 10.4%. This decrease was primarily due to lower employee-related costs