10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from            to           .

Commission File Number: 001-38319

QUANTERIX CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	20-8957988
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
900 Middlesex Turnpike
Billerica, MA	01821
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (617) 301-9400

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class:	Trading Symbol(s)	Name of each exchange on which registered:
Common Stock, $0.001 par value per share	QTRX	The Nasdaq Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ⌧    No  ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes  ⌧    No  ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	◻	Accelerated filer	◻
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐  Yes ⌧  No

As of July 29, 2021, the registrant had 36,522,840 shares of common stock, $0.001 par value per share, outstanding.

TTABLE OF CONTENTS

	Page
Special Note Regarding Forward-Looking Statements	3
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements	4
Unaudited Condensed Consolidated Balance Sheets at June 30, 2021 and December 31, 2020	4
Unaudited Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2021 and 2020	5
Unaudited Condensed Consolidated Statements of Comprehensive Loss for the Three and Six Months Ended June 30, 2021 and 2020	6
Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2021 and 2020	7
Unaudited Condensed Consolidated Statements of Stockholders’ Equity for the Three and Six Months Ended June 30, 2021 and 2020	8
Notes to Condensed Consolidated Financial Statements	9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3. Quantitative and Qualitative Disclosures About Market Risk	36
Item 4. Controls and Procedures	36
PART II — OTHER INFORMATION
Item 1. Legal Proceedings	36
Item 1A. Risk Factors	36
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 3. Defaults Upon Senior Securities	37
Item 4. Mine Safety Disclosures	37
Item 5. Other Information	37
Item 6. Exhibits	38
Signatures	39

2

Special Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements that involve risks and uncertainties. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q are forward-looking statements. In some cases, you can identify forward-looking statements by words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or the negative of these words or other comparable terminology. These forward-looking statements include, but are not limited to, statements about our financial performance, and are subject to a number of risks, uncertainties and assumptions, including those described in this Quarterly Report on Form 10-Q and in “Part I, Item 1A, Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2020 or other filings that we make with the Securities and Exchange Commission, or SEC. Moreover, we operate in a very competitive and rapidly changing environment, and new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this Quarterly Report on Form 10-Q may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance, events or circumstances reflected in the forward-looking statements will be achieved or occur. You should read this Quarterly Report on Form 10-Q, and the documents that we reference herein and have filed with the SEC, with the understanding that our actual future results, levels of activity, performance, and events and circumstances may be materially different from what we expect. We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this Quarterly Report on Form 10-Q to conform these statements to new information, actual results or to changes in our expectations, except as required by law.

Unless the context otherwise requires, the terms “Quanterix,” the “Company,” “we,” “us” and “our” in this Quarterly Report on Form 10-Q refer to Quanterix Corporation and its subsidiaries. “Quanterix,” “Simoa,” “Simoa HD-X,” “Simoa HD-1,” “SR-X,” “SP-X,” “HD-X Analyzer,” “HD-1 Analyzer” and our logo are our trademarks. All other service marks, trademarks and trade names appearing in this Quarterly Report on Form 10-Q are the property of their respective owners. We do not intend our use or display of other companies’ trade names, trademarks or service marks to imply a relationship with, or endorsement or sponsorship of us by, these other companies.

3

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

Quanterix Corporation

Condensed Consolidated Balance Sheets

(amounts in thousands, except share and per share data)

	(Unaudited)
	June 30, 2021		December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	430,780	$	181,584
Accounts receivable (less allowance for credit losses of $377 and $370 as of June 30, 2021 and December 31, 2020, respectively; including $134 and $172 due from related parties as of June 30, 2021 and December 31, 2020, respectively)		15,430		17,184
Inventory		21,225		14,856
Prepaid expenses and other current assets		9,005		5,981
Total current assets		476,440		219,605
Restricted cash		1,400		1,000
Property and equipment, net		15,778		13,912
Intangible assets, net		12,174		13,716
Goodwill		10,121		10,460
Right-of-use assets		11,754		11,995
Other non-current assets		377		357
Total assets	$	528,044	$	271,045
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable (including $10 and $14 to related parties as of June 30, 2021 and December 31, 2020, respectively)	$	6,862	$	6,799
Accrued compensation and benefits		8,919		10,777
Other accrued expenses (including $8 and $1,377 to related parties as of June 30, 2021 and December 31, 2020, respectively)		5,083		4,845
Deferred revenue (including $45 and $90 with related parties as of June 30, 2021 and December 31, 2020, respectively)		6,149		5,421
Current portion of long term debt		7,716		7,673
Short term lease liabilities		1,322		1,234
Other current liabilities		1,624		3,054
Total current liabilities		37,675		39,803
Deferred revenue, net of current portion		740		577
Long term lease liabilities		21,210		21,891
Deferred tax liabilities		2,409		2,649
Total liabilities		62,034		64,920
Stockholders’ equity:
Common stock, $0.001 par value:
Authorized—120,000,000 shares as of June 30, 2021 and December 31, 2020; issued and outstanding — 36,454,369 and 31,796,544 shares as of June 30, 2021 and December 31, 2020, respectively		37		32
Additional paid-in capital		734,170		451,433
Accumulated other comprehensive income		1,578		2,434
Accumulated deficit		(269,775)		(247,774)
Total stockholders’ equity		466,010		206,125
Total liabilities and stockholders’ equity	$	528,044	$	271,045

See accompanying notes

4

Quanterix Corporation

Condensed Consolidated Statements of Operations

(amounts in thousands, except share and per share data)

(Unaudited)

		Three Months Ended June 30,			Six Months Ended June 30,
	2021		2020		2021		2020
Product revenue (including related party activity of $151 and $186 for the three months ended June 30, 2021 and 2020, respectively, and $243 and $220 for the six months ended June 30, 2021 and 2020, respectively)	$	18,676	$	6,790	$	36,924	$	16,623
Service and other revenue (including related party activity of $5 and $21 for the three months ended June 30, 2021 and 2020, respectively, and $29 and $45 for the six months ended June 30, 2021 and 2020, respectively)		5,648		6,317		12,057		12,079
Collaboration and license revenue		105		23		366		155
Grant revenue		942		—		3,233		—
Total revenue		25,371		13,130		52,580		28,857
Costs of goods sold:
Cost of product revenue (including related party activity of $486 and $30 for the three months ended June 30, 2021 and 2020, respectively, and $1,056 and $57 for the six months ended June 30, 2021 and 2020, respectively)		8,114		5,416		15,594		11,602
Cost of service and other revenue (including related party activity of $34 and $0 for the three months ended June 30, 2021 and 2020, respectively, and $51 and $0 for the six months ended June 30, 2021 and 2020, respectively)		3,383		2,501		6,763		5,229
Total costs of goods sold and services		11,497		7,917		22,357		16,831
Gross profit		13,874		5,213		30,223		12,026
Operating expenses:
Research and development (including related party activity of $43 and $23 for the three months ended June 30, 2021 and 2020, respectively, and $51 and $59 for the six months ended June 30, 2021 and 2020, respectively)		6,754		4,312		13,437		8,580
Selling, general and administrative (including related party activity of $9 and $15 for the three months ended June 30, 2021 and 2020, respectively, and $23 and $23 for the six months ended June 30, 2021 and 2020, respectively)		20,788		13,102		40,243		27,375
Total operating expenses		27,542		17,414		53,680		35,955
Loss from operations		(13,668)		(12,201)		(23,457)		(23,929)
Interest (expense) income, net		(165)		(108)		(328)		53
Other income (expense), net		1,977		(11)		1,783		(178)
Loss before income taxes		(11,856)		(12,320)		(22,002)		(24,054)
Income tax (provision) benefit		(41)		18		1		142
Net loss	$	(11,897)	$	(12,302)	$	(22,001)	$	(23,912)
Net loss per share, basic and diluted	$	(0.33)	$	(0.43)	$	(0.62)	$	(0.85)
Weighted-average common shares outstanding, basic and diluted		36,347,365		28,312,925		35,396,431		28,246,028

See accompanying notes

5

Quanterix Corporation

Condensed Consolidated Statements of Comprehensive Loss

(amounts in thousands)

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Net loss	$	(11,897)	$	(12,302)	$	(22,001)	$	(23,912)
Other comprehensive loss:
Cumulative translation adjustment		395		1,174		(856)		127
Total other comprehensive loss		395		1,174		(856)		127
Comprehensive loss	$	(11,502)	$	(11,128)	$	(22,857)	$	(23,785)

See accompanying notes

6

Quanterix Corporation

Condensed Consolidated Statements of Cash Flows

(amounts in thousands)

(Unaudited)

		Six Months Ended June 30,
	2021		2020
Operating activities
Net loss	$	(22,001)	$	(23,912)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense		2,344		2,079
Inventory step-up amortization		275		194
Credit loss expense on accounts receivable		20		—
Reduction in the carrying amounts of right-of-use assets		246		108
Stock-based compensation expense		7,036		4,610
Non-cash interest expense		43		43
Loss on disposal of fixed assets		—		69
Changes in operating assets and liabilities:
Accounts receivable		1,740		1,445
Prepaid expenses and other assets		(2,952)		116
Inventory		(6,793)		(3,504)
Other non-current assets		(20)		27
Accounts payable		40		(959)
Accrued compensation and benefits, other accrued expenses and other current liabilities		(3,925)		(1,008)
Contract acquisition costs		(72)		(99)
Operating lease liabilities		(590)		387
Deferred tax liabilities		(120)		(437)
Deferred revenue		891		241
Net cash used in operating activities		(23,838)		(20,600)
Investing activities
Purchases of property and equipment		(7,339)		(1,361)
Proceeds from RADx grant on assets purchased		5,210		—
Net cash used in investing activities		(2,129)		(1,361)
Financing activities
Proceeds from stock options exercised		5,469		1,111
Sale of common stock in underwritten public offering, net		269,718		—
Proceeds from ESPP purchase		519		440
Payments on notes payable		—		(75)
Net cash provided by financing activities		275,706		1,476
Net increase (decrease) in cash and cash equivalents		249,739		(20,485)
Effect of foreign currency exchange rate on cash		(143)		110
Cash, restricted cash, and cash equivalents at beginning of period		182,584		110,181
Cash, restricted cash, and cash equivalents at end of period	$	432,180	$	89,806
Supplemental cash flow information
Cash paid for interest	$	309	$	155
Purchases of property and equipment included in accounts payable	$	889	$	35
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	$	430,780	$	88,806
Restricted cash	$	1,400	$	1,000
Total cash, cash equivalents, and restricted cash	$	432,180	$	89,806

See accompanying notes

7

Quanterix Corporation

Condensed Consolidated Statements of Stockholders’ Equity

(amounts in thousands, except share data)

(Unaudited)

						Accumulated
				Additional		other				Total
	Common	Common		paid-in		comprehensive		Accumulated		stockholders’
	stock shares	stock value		capital		income (loss)		deficit		equity
Balance at March 31, 2021	36,294,928	$	36	$	728,128	$	1,183	$	(257,878)	$	471,469
Exercise of common stock options and vesting of restricted stock	159,441		1		2,392		—		—		2,393
Stock-based compensation expense	—		—		3,650		—		—		3,650
Cumulative translation adjustment	—		—		—		395		—		395
Net loss	—		—		—		—		(11,897)		(11,897)
Balance at June 30, 2021	36,454,369	$	37	$	734,170	$	1,578	$	(269,775)	$	466,010
						Accumulated
				Additional		other				Total
	Common	Common		paid-in		comprehensive		Accumulated		stockholders’
	stock shares	stock value		capital		income (loss)		deficit		equity
Balance at March 31, 2020	28,243,442	$	28	$	348,072	$	(1,200)	$	(227,854)	$	119,046
Exercise of common stock options and vesting of restricted stock	137,838		—		615		—		—		615
Stock-based compensation expense	—		—		2,501		—		—		2,501
Cumulative translation adjustment	—		—		—		1,174		—		1,174
Net loss	—		—		—		—		(12,302)		(12,302)
Balance at June 30, 2020	28,381,280	$	28	$	351,188	$	(26)	$	(240,156)	$	111,034
						Accumulated
				Additional		other				Total
	Common	Common		paid-in		comprehensive		Accumulated		stockholders’
	stock shares	stock value		capital		income (loss)		deficit		equity
Balance at December 31, 2020	31,796,544	$	32	$	451,433	$	2,434	$	(247,774)	$	206,125
Exercise of common stock options, warrants, and vesting of restricted stock	533,458		1		5,468		—		—		5,469
Sale of common stock in underwritten public offering, net	4,107,142		4		269,714		—		—		269,718
ESPP stock purchase	17,225		—		519		—		—		519
Stock-based compensation expense	—		—		7,036		—		—		7,036
Cumulative translation adjustment	—		—		—		(856)		—		(856)
Net loss	—		—		—		—		(22,001)		(22,001)
Balance at June 30, 2021	36,454,369	$	37	$	734,170	$	1,578	$	(269,775)	$	466,010
						Accumulated
				Additional		other				Total
	Common	Common		paid-in		comprehensive		Accumulated		stockholders’
	stock shares	stock value		capital		income (loss)		deficit		equity
Balance at December 31, 2019	28,112,201	$	28	$	345,027	$	(153)	$	(216,244)	$	128,658
Exercise of common stock options and vesting of restricted stock	246,386		—		1,111		—		—		1,111
ESPP stock purchase	22,693		—		440		—		—		440
Stock-based compensation expense	—		—		4,610		—		—		4,610
Cumulative translation adjustment	—		—		—		127		—		127
Net loss	—		—		—		—		(23,912)		(23,912)
Balance at June 30, 2020	28,381,280	$	28	$	351,188	$	(26)	$	(240,156)	$	111,034

See accompanying notes

8

Quanterix Corporation

Notes to condensed consolidated financial statements

(Unaudited)

1. Organization and operations

Quanterix Corporation (Nasdaq: QTRX) (the Company) is a life sciences company that has developed next generation, ultra-sensitive digital immunoassay platforms that advance precision health for life sciences research and diagnostics. The Company's platforms are based on its proprietary digital "Simoa" detection technology. The Company's Simoa bead-based and planar array platforms enable customers to reliably detect protein biomarkers in extremely low concentrations in blood, serum and other fluids that, in many cases, are undetectable using conventional, analog immunoassay technologies, and also allow researchers to define and validate the function of novel protein biomarkers that are only present in very low concentrations and have been discovered using technologies such as mass spectrometry. These capabilities provide the Company's customers with insight into the role of protein biomarkers in human health that has not been possible with other existing technologies and enable researchers to unlock unique insights into the continuum between health and disease. The Company is currently focusing on protein detection, which it believes is an area of significant unmet need and where it has significant competitive advantages. However, in addition to enabling new applications and insights in protein analysis, the Company’s Simoa platforms have also demonstrated applicability across other testing applications, including detection of nucleic acids and small molecules.

The Company launched its first immunoassay platform, the Simoa HD-1, in 2014. The HD-1 is a fully automated immunoassay bead-based platform with multiplexing and custom assay capability, and related assay test kits and consumable materials. The Company launched a second bead-based immunoassay platform (SR-X) in the fourth quarter of 2017 with a more compact footprint than the Simoa HD-1 and less automation designed for lower volume requirements while still allowing multiplexing and custom assay capability. The Company initiated an early-access program for its third instrument (SP-X) on the new Simoa planar array platform in January 2019, with the full commercial launch commencing in April 2019. In July 2019, the Company launched the Simoa HD-X, an upgraded version of the Simoa HD-1 which replaces the HD-1. The HD-X has been designed to deliver significant productivity and operational efficiency improvements, as well as greater user flexibility. The Company began shipping and installing HD-X instruments at customer locations in the third quarter of 2019. The Company also performs research services on behalf of customers to apply the Simoa technology to specific customer needs. The Company's customers are primarily in the research use only market, which includes academic and governmental research institutions, the research and development laboratories of pharmaceutical manufacturers, contract research organizations, and specialty research laboratories.

The Company acquired Aushon Biosystems, Inc. (Aushon) in January 2018. With the acquisition of Aushon, the Company acquired a CLIA certified laboratory, as well as Aushon's proprietary sensitive planar array detection technology. Leveraging its proprietary sophisticated Simoa image analysis and data analysis algorithms, the Company further refined this planar array technology to develop the SP-X instrument to provide the same Simoa sensitivity found in its bead-based platform.

The Company completed the acquisition of UmanDiagnostics AB (Uman), a Swedish company located in Umea, Sweden, in August 2019. Uman supplies neurofilament light (Nf-L) antibodies and ELISA kits, which are widely recognized by researchers and biopharmaceutical and diagnostics companies world-wide as the premier solution for the detection of Nf-L to advance the development of therapeutics and diagnostics for neurodegenerative conditions. With the acquisition of Uman, the Company has secured a long-term source of supply for a critical technology.

Underwritten public offerings

On August 6, 2020, the Company entered into an underwriting agreement with SVB Leerink LLC (Leerink) and Cowen and Company, LLC (Cowen), as representatives of the several underwriters, relating to an underwritten public offering of approximately 3.0 million shares of the Company’s common stock, par value $0.001 per share. The underwritten public offering resulted in gross proceeds of $97.6 million. The Company incurred $6.2 million in issuance costs associated with the underwritten public offering, resulting in net proceeds to the Company of $91.4 million.

9

On February 3, 2021, the Company entered into an underwriting agreement with Goldman Sachs & Co. LLC, Leerink, and Cowen, as representatives of the several underwriters, relating to an underwritten public offering of approximately 4.1 million shares of the Company’s common stock, par value $0.001 per share. The underwritten public offering resulted in gross proceeds of $287.5 million. The Company incurred $17.8 million in issuance costs associated with the underwritten public offering, resulting in net proceeds to the Company of $269.7 million.

Basis of presentation

The interim condensed consolidated financial statements are unaudited. The unaudited condensed consolidated financial statements reflect, in the opinion of the Company’s management, all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of financial position, results of operations, comprehensive loss and cash flows for each period presented in accordance with United States generally accepted accounting principles (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on March 5, 2021 (the 2020 Annual Report on Form 10-K). The consolidated financial information as of December 31, 2020 has been derived from the audited 2020 consolidated financial statements included in the 2020 Annual Report on Form 10-K.

2. Significant accounting policies

Principles of consolidation

The condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of Quanterix Corporation and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation.

Use of estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. In making those estimates and assumptions, the Company bases its estimates on historical experience and on various other assumptions believed to be reasonable. The Company’s significant estimates included in the preparation of the consolidated financial statements are related to revenue recognition, fair value of assets acquired and liabilities assumed in acquisitions, valuation allowances recorded against deferred tax assets, and valuation of inventory. Actual results could differ from those estimates.

Foreign currency

The Company translates assets and liabilities of its foreign subsidiaries at rates in effect at the end of the reporting period. Revenues and expenses are translated at average rates in effect during the reporting period. Translation adjustments are included in accumulated other comprehensive income.

Income taxes

The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company's consolidated financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on differences between the consolidated financial statement carrying amounts and the tax bases of the assets and liabilities using the enacted tax rates in effect in the years in which the differences are expected to reverse. A valuation allowance against deferred tax assets is recorded if, based on the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

10

The Company accounts for uncertain tax positions in accordance with the provisions of Accounting Standards Codification (ASC) 740, Income Taxes (ASC 740). When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. As of June 30, 2021, the Company did not have any significant uncertain tax positions.

Business combinations

Under the acquisition method of accounting, the Company generally recognizes the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition. The fair values assigned, defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants, are based on estimates and assumptions determined by management. The excess consideration over 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 typically uses the discounted cash flow method to value acquired intangible assets. This method requires significant management judgment to forecast future operating results and establish residual growth rates and discount factors. The estimates used to value and amortize intangible assets are consistent with the plans and estimates that are used to manage the business and are based on available historical information and industry estimates and averages. If the subsequent actual results and updated projections of the underlying business activity change compared with the assumptions and projections used to develop these values, the Company could experience impairment charges. In addition, the Company has estimated the economic lives of certain acquired assets and these lives are used to calculate depreciation and amortization expense. If estimates of the economic lives change, depreciation or amortization expenses could be accelerated or slowed.

Restricted cash

Restricted cash primarily represents collateral for a letter of credit issued as security for the lease for the Company’s headquarters in Billerica, Massachusetts, and to secure the Company’s corporate credit card program. The restricted cash is long term in nature as the Company will not have access to the funds until more than one year from June 30, 2021.

Recent accounting pronouncements

The Company is considered to be an “emerging growth company” (EGC) as defined in the Jumpstart Our Business Startups Act of 2012, as amended (JOBS Act). The JOBS Act provides that an EGC can take advantage of an extended transition period for complying with new or revised accounting standards. Thus, an EGC can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. Because the market value of the Company’s common stock that was held by non-affiliates exceeded $700 million as of June 30, 2021, the Company will cease to be an EGC as of December 31, 2021. As a result, starting in 2022, the Company will be required to adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies.

Recently Adopted

In June 2016, the Financial Accounting Standards Board (FASB) established Topic 326, Financial Instruments — Credit Losses: Measurement of Credit Losses on Financial Instruments (ASC 326) by issuing Accounting Standards Update (ASU) No. 2016-13 (ASU 2016-13), which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables and available-for-sale debt securities. The Company early adopted ASU 2016-13 on January 1, 2021 using the modified retrospective approach. The Company’s consolidated financial statements for prior-year periods have

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not been revised and are reflective of the credit loss requirements which were in effect for that period. The adoption of ASU 2016-13 did not have a material impact on the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15). This ASU addresses the accounting for implementation, setup and other upfront costs paid by a customer in a cloud computing or hosting arrangement. The guidance aligns the accounting treatment of these costs incurred in a hosting arrangement treated as a service contract with the requirements for capitalization and amortization costs to develop or obtain internal-use software. The Company adopted ASU 2018-15 on January 1, 2021 using the prospective method. The adoption of ASU 2018-15 did not have a material impact on the Company’s consolidated financial statements.

In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (ASU 2019-12), which is intended to simplify various areas related to ASC 740, Income Taxes (ASC 740). ASU 2019-12 removes certain exceptions for performing intra period tax allocations and calculating income taxes in interim periods. The guidance also simplifies the accounting for transactions that result in a step-up in the tax basis of goodwill and the effect of enacted changes in tax laws or rates in interim periods. The Company early adopted ASU 2019-12 on January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on the Company’s consolidated financial statements.

There have been no other material changes to the significant accounting policies and recent accounting pronouncements previously disclosed in the 2020 Annual Report on Form 10-K.

3. Revenue recognition

The Company recognizes revenue when a customer obtains control of a promised good or service. The amount of revenue recognized reflects consideration that the Company expects to be entitled to receive in exchange for these goods and services, incentives and taxes collected from customers that are subsequently remitted to governmental authorities.

Customers

The Company’s customers primarily consist of entities engaged in the life sciences research market that pursue the discovery and development of new drugs for a variety of neurologic, cardiovascular, oncologic and other protein biomarkers associated with diseases. The Company’s customer base includes several of the largest biopharmaceutical companies, academic research organizations and distributors who serve certain geographic markets.

Product revenue

The Company’s products are composed of analyzer instruments, assay kits and other consumables such as reagents. Products are sold directly to biopharmaceutical and academic research organizations or are sold through distributors in EMEA and Asia Pacific regions. The sales of instruments are generally accompanied by an initial year of implied service-type warranties and may be bundled with assays and other consumables and may also include other items such as training and installation of the instrument and/or an extended service warranty. Revenues from the sale of products are recognized at a point in time when the Company transfers control of the product to the customer, which is upon installation for instruments sold to direct customers, and based upon shipping terms for assay kits and other consumables. Revenue for instruments sold to distributors is generally recognized based upon shipping terms (either upon shipment or delivery).

Service and other revenue

Service revenues are composed of contract research services, initial implied one-year service-type warranties, extended services contracts and other services such as training. Contract research services are provided through the Company’s Accelerator Laboratory and generally consist of fixed fee contracts. Revenues from contract research

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services are recognized at a point in time when the Company completes and delivers its research report on each individually completed study, or over time if the contractual provisions allow for the collection of transaction consideration for costs incurred plus a reasonable margin through the period of performance of the services. Revenues from service-type warranties are recognized ratably over the contract service period. Revenues from other services are immaterial.

Collaboration and license revenue

The Company may enter into agreements to license the intellectual property and know-how associated with its instruments and certain antibodies in exchange for license fees and future royalties (as described below). The license agreements provide the licensee with a right to use the intellectual property with the license fee revenues recognized at a point in time as the underlying license is considered functional intellectual property.

Payment terms

The Company’s payment terms vary by the type and location of the customer and the products or services offered. Payment from customers is generally required in a term ranging from 30 to 45 days from date of shipment or satisfaction of the performance obligation. The Company does not provide financing arrangements to its customers.

Disaggregated revenue

When disaggregating revenue, the Company considered all of the economic factors that may affect its revenues. The following tables disaggregate the Company's revenue from contracts with customers by revenue type (in thousands):

	Three Months Ended								Six Months Ended
	June 30, 2021								June 30, 2021
	NA		EMEA		Asia Pacific		Total		NA		EMEA		Asia Pacific		Total
Product revenues
Instruments	$	2,122	$	1,630	$	2,086	$	5,838	$	5,878	$	4,463	$	2,458	$	12,799
Consumable and other products		8,812		3,251		775		12,838		15,723		6,744		1,658		24,125
Totals	$	10,934	$	4,881	$	2,861	$	18,676	$	21,601	$	11,207	$	4,116	$	36,924
Service and other revenues
Service-type warranties	$	1,098	$	458	$	51	$	1,607	$	2,069	$	896	$	113	$	3,078
Research services		2,728		763		27		3,518		6,286		1,491		39		7,816
Other services		351		172		—		523		807		356		—		1,163
Totals	$	4,177	$	1,393	$	78	$	5,648	$	9,162	$	2,743	$	152	$	12,057
Collaboration and license revenue
Collaboration and license revenue	$	41	$	64	$	—	$	105	$	228	$	138	$	—	$	366
Totals	$	41	$	64	$	—	$	105	$	228	$	138	$	—	$	366

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	Three Months Ended								Six Months Ended
	June 30, 2020								June 30, 2020
	NA		EMEA		Asia Pacific		Total		NA		EMEA		Asia Pacific		Total
Product revenues
Instruments	$	1,220	$	1,009	$	535	$	2,764	$	2,973	$	1,735	$	1,744	$	6,452
Consumable and other products		1,734		1,897		395		4,026		4,658		4,601		912		10,171
Totals	$	2,954	$	2,906	$	930	$	6,790	$	7,631	$	6,336	$	2,656	$	16,623
Service and other revenues
Service-type warranties	$	731	$	385	$	59	$	1,175	$	1,479	$	764	$	111	$	2,354
Research services		4,394		513		75		4,982		8,061		595		613		9,269
Other services		75		67		18		160		306		127		23		456
Totals	$	5,200	$	965	$	152	$	6,317	$	9,846	$	1,486	$	747	$	12,079
Collaboration and license revenue
Collaboration and license revenue	$	22	$	1	$	—	$	23	$	144	$	11	$	—	$	155
Totals	$	22	$	1	$	—	$	23	$	144	$	11	$	—	$	155

The Company’s contracts with customers may include promises to transfer multiple products and services to a customer. The Company combines any performance obligations that are immaterial with one or more other performance obligations that are material to the contract. For arrangements with multiple performance obligations, the Company allocates the contract transaction price, including discounts, to each performance obligation based on its relative standalone selling price. Judgment is required to determine the standalone selling price for each distinct performance obligation. The Company determines standalone selling prices based on prices charged to customers in observable transactions, and uses a range of amounts to estimate standalone selling prices for each performance obligation. The Company may have more than one range of standalone selling price for certain products and services based on the pricing for different customer classes.

Variable consideration in the Company’s contracts primarily relates to (i) sales- and usage-based royalties related to the license of intellectual property in collaboration and license contracts and (ii) certain non-fixed fee research services contracts. ASC 606 provides for an exception to estimating the variable consideration for sales- and usage-based royalties related to the license of intellectual property, such that the sales- and usage-based royalty will be recognized in the period the underlying transaction occurs. The Company recognizes revenue from sales- and usage-based royalty revenue at the later of when the sale or usage occurs and the satisfaction or partial satisfaction of the performance obligation to which the royalty has been allocated.

The aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied or are partially satisfied as of June 30, 2021 and 2020 is $6.9 million and $5.4 million, respectively. As of June 30, 2021, of the performance obligations not yet satisfied or partially satisfied, $6.1 million is expected to be recognized as revenue in the next 12 months, with the remainder to be recognized within the 24 months thereafter. The $6.1 million at June 30, 2021 principally consists of amounts billed for undelivered services related to initial and extended service-type warranties and research services, as well as $0.5 million related to undelivered licenses of intellectual property for a diagnostics company (see Note 13).

Changes in deferred revenue from contracts with customers were as follows (in thousands):

	Six Months Ended June 30, 2021
Balance at December 31, 2020	$	5,998
Deferral of revenue		3,969
Recognition of deferred revenue		(3,078)
Balance at June 30, 2021	$	6,889

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Costs to obtain a contract

The Company’s sales commissions are generally based on revenues of the Company. The Company has determined that certain commissions paid under its sales incentive programs meet the requirements to be capitalized as they are incremental and would not have occurred absent a customer contract. The change in the balance of costs to obtain a contract are as follows (in thousands):

	Six Months Ended June 30, 2021
Balance at December 31, 2020	$	248
Deferral of costs to obtain a contract		311
Recognition of costs to obtain a contract		(229)
Balance at June 30, 2021	$	330

The Company has classified the balance of capitalized costs to obtain a contract as a component of prepaid expenses and other current assets and classifies the expense as a component of cost of goods sold and selling, general, and administrative expense over the estimated life of the contract. The Company considers potential impairment in these amounts each period.

ASC 606 provides entities with certain practical expedients and accounting policy elections to minimize the cost and burden of adoption.

The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with original expected length of one year or less and (ii) contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed.

The Company will exclude from its transaction price any amounts collected from customers related to sales and other similar taxes.

When determining the transaction price of a contract, an adjustment is made if payment from a customer occurs either significantly before or significantly after performance, resulting in a significant financing component. The Company does not assess whether a significant financing component exists if the period between when the Company performs its obligations under the contract and when the customer pays is one year or less. None of the Company’s contracts contained a significant financing component as of June 30, 2021 and 2020, respectively.

The Company has elected to account for the shipping and handling as an activity to fulfill the promise to transfer the product, and therefore will not evaluate whether shipping and handling activities are promised services to its customers.

Grant revenue

The Company recognizes grant revenue as it performs services under the arrangement when the funding is committed. Revenues and related research and development expenses are presented gross in the consolidated statements of operations as the Company has determined it is the primary obligor under the arrangement relative to the research and development services.

Accounting for grants does not fall under ASC 606, as the grantor will not benefit directly from the Company’s expansion or product development. As there is no authoritative guidance under U.S. GAAP on accounting for government assistance to for-profit business entities, the Company has accounted for grants by analogy to International Accounting Standards (IAS) 20, Accounting for Government Grants and Disclosure of Government Assistance (IAS 20).

Grants to the Company contain both monetary amounts granted related to assets and monetary amounts granted related to income, which are grants other than those related to assets. The grants related to assets are for the expansion and increase of manufacturing capacity. The grants related to income are for additional research and development, as well as other non-asset related scale up costs.

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Under IAS 20, grants related to assets shall be presented in the consolidated balance sheets either by recognizing the grant as deferred income (which is recognized in the consolidated statements of operations on a systematic basis over the useful life of the asset), or by deducting the grant in calculating the carrying amount of the asset (which is recognized in the consolidated statements of operations over the life of the depreciable asset as a reduced depreciation expense). Both methods are acceptable under IAS 20. The Company has elected to record grants related to assets as a deduction in calculating the carrying value of the asset.

Under IAS 20, grants related to income are presented as part of the consolidated statements of operations, either separately or under a general heading. Both methods are acceptable under IAS 20. The Company has elected to record grants related to income separately on the consolidated statements of operations as grant revenue. The related expenses are recorded within operating expenses.

On June 22, 2020, the Company entered into a workplan 1 award (WP1) with the National Institute of Health (NIH), under the Rapid Acceleration of Diagnostics (RADx) program to assess the feasibility of a novel SARS-CoV-2 antigen detection test using the Company’s Simoa technology. WP1 was complete as of December 31, 2020.

On September 29, 2020, the Company entered into a workplan 2 award (WP2) with the NIH under its RADx program. WP2, which has a total award value of $18.2 million, accelerates the continued development, scale-up, and deployment of the novel SARS-CoV-2 antigen detection test using the Company’s Simoa technology. The contract provides funding to expand assay kit manufacturing capacity and commercial deployment readiness. Release of the $18.2 million of funding under WP2 is based on the achievement of certain milestones, and there is no assurance that the Company can meet all the milestones on a timely basis, if at all. If the Company does not meet all of the milestones, it will not be able access the full $18.2 million in funding under the contract. During the six months ended June 30, 2021 the Company recognized $3.2 million in grant revenue and incurred $2.9 million in research and development expense related to WP2.

The following table summarizes the activity under WP2 (in thousands):

	June 30, 2021		December 31, 2020
Total grant revenue from research and development activities	$	7,595	$	4,362
Total proceeds used for assets		6,865		826
Total deferred proceeds for assets		996		2,478
Total deferred grant revenue		348		304
Total recognized	$	15,804	$	7,970
Total recognized	$	15,804	$	7,970
Total amount accrued		(2,088)		(2,968)
Total cash received	$	13,716	$	5,002
Total proceeds received	$	13,716	$	5,002
Total proceeds reasonably assured		4,484		13,198
Total WP2 grant amount	$	18,200	$	18,200

4. Net loss per share

Basic net loss per common share is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and potentially dilutive securities outstanding for the period determined using the treasury-stock and if-converted methods. For purposes of the diluted net loss per share calculation, unvested restricted common stock, restricted stock units, stock options, and

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warrants are considered to be potentially dilutive securities, but are excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive and therefore basic and diluted net loss per share were the same for all periods presented.

The following table sets forth the outstanding potentially dilutive securities that have been excluded in the calculation of diluted net loss per share because to do so would be anti-dilutive (in common stock equivalent shares):

	June 30,
	2021	2020
Unvested restricted common stock and restricted stock units	572,132	479,996
Outstanding stock options	2,277,005	2,744,441
Outstanding common stock warrants	—	10,000
Total	2,849,137	3,234,437

As of June 30, 2021 and 2020, the Company had an obligation to issue warrants to purchase an additional 93,341 shares of common stock to a vendor if a contract is terminated prior to a minimum purchase commitment being met. No amounts are presented in the table above for this obligation to issue a warrant as the issuance of the warrant is not considered probable.

5. Fair value of financial instruments

ASC Topic 820, Fair Value Measurement (ASC 820), establishes a fair value hierarchy for instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability, and are developed based on the best information available in the circumstances.

ASC 820 identifies fair value as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a three-tier fair value hierarchy that distinguishes between the following:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 inputs are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; and

Level 3 inputs are unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability.

Fair value measurements as of June 30, 2021 are as follows (in thousands):

			Quoted prices				Significant
			in active		Significant other		unobservable
			markets		observable		inputs
Description	Total		(Level 1)		inputs (Level 2)		(Level 3)
Financial assets
Cash equivalents	$	162,072	$	162,072	$	—	$	—
	$	162,072	$	162,072	$	—	$	—

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Fair value measurements as of December 31, 2020 are as follows (in thousands):

			Quoted prices				Significant
			in active		Significant other		unobservable
			markets		observable		inputs
Description	Total		(Level 1)		inputs (Level 2)		(Level 3)
Financial assets
Cash equivalents	$	162,048	$	162,048	$	—	$	—
	$	162,048	$	162,048	$	—	$	—

6. Inventory

Inventory consists of the following (in thousands):

	June 30,		December 31,
	2021		2020
Raw materials	$	6,573	$	5,265
Work in process		4,181		3,306
Finished goods		10,471		6,285
Total	$	21,225	$	14,856

Inventory comprises commercial instruments, assays, and the materials required to manufacture limited instruments and assays.

7. Allowance for Credit Losses

The Company is exposed to credit losses primarily through sales of products and services. The Company’s expected loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions, and a review of the current status of customers’ trade accounts receivable. Due to the short-term nature of such receivables, the estimated accounts receivable that may not be collected is based on aging of the accounts receivable balances.

Customers are assessed for credit worthiness upfront through a credit review, which includes assessment based on the Company’s analysis of their financial statements when a credit rating is not available. The Company evaluates contract terms and conditions, country, and political risk, and may require prepayment to mitigate risk of loss. Specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. The Company monitors changes to the receivables balance on a timely basis, and balances are written off as they are determined to be uncollectable after all collection efforts have been exhausted.

As of June 30, 2021, the Company’s accounts receivable balance was $15.4 million, net of $0.4 million of allowance for credit losses. The following table provides a roll-forward of the allowance for credit losses for the six months ended June 30, 2021 that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected (in thousands):

Balance at January 1, 2021	$	370
Credit loss expense		20
Write-offs charged against allowances		(86)
Recoveries collected		73
Balance at June 30, 2021	$	377

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8. Other accrued expenses

Other accrued expenses consist of the following (in thousands):

	June 30,		December 31,
	2021		2020
Accrued inventory purchases	$	1,139	$	527
Accrued property and equipment purchases		926		670
Accrued royalties		829		1,845
Accrued professional services		781		797
Accrued development costs		571		323
Accrued other		837		683
Total accrued expenses	$	5,083	$	4,845

9. Warrants, stock-based compensation, stock options, restricted stock and restricted stock units

Warrants

On January 20, 2021, 10,000 warrants were exercised by a holder on a net, non-cash basis. Per the terms of the warrant agreement, the Company issued 7,347 shares of common stock with a value equal to the holder’s gain. The Company had no warrants outstanding as of June 30, 2021.

Stock-based compensation

Stock-based compensation expense for all stock awards consists of the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Cost of product revenue	$	96	$	49	$	186	$	85
Cost of service and other revenue		122		80		232		148
Research and development		409		290		808		531
Selling, general, and administrative		3,023		2,082		5,810		3,846
Total	$	3,650	$	2,501	$	7,036	$	4,610

In June 2007, the Company adopted the 2007 Stock Option and Grant Plan (the 2007 Plan), under which it could grant incentive stock options, non-qualified options, restricted stock, and stock grants. In connection with the completion of the initial public offering, the Company terminated the 2007 Plan. As of June 30, 2021, options to purchase 728,297 shares were outstanding, and no shares were available for future grant under the 2007 Plan.

In December 2017, the Company adopted the 2017 Employee, Director and Consultant Equity Incentive Plan (the 2017 Plan), under which it may grant incentive stock options, non-qualified stock options, restricted stock, and other stock-based awards. As of December 31, 2017, the 2017 Plan allowed for the issuance of up to 1,042,314 shares of common stock plus up to 2,490,290 shares of common stock represented by awards granted under the 2007 Plan that are forfeited, expire, or are cancelled without delivery of shares or which result in the forfeiture of shares of common stock back to the Company on or after the date the 2017 Plan became effective. As of June 30, 2021, there were 1,621,476 shares available for grant under the 2017 Plan.

In addition, the 2017 Plan contains an "evergreen" provision, which allows for an annual increase in the number of shares of common stock available for issuance under the 2017 Plan on the first day of each fiscal year during the period beginning in fiscal year 2019 and ending in fiscal year 2027. The annual increase in the number of shares shall be equal to the lowest of: 4% of the number of shares of common stock outstanding as of such date; and an amount determined by the Company’s Board of Directors or Compensation Committee. On January 1, 2021, the number of shares of common stock available for issuance under the 2017 Plan was automatically increased by 1,273,501 shares.

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In December 2017, the Company adopted the 2017 Employee Stock Purchase Plan (the 2017 ESPP). As of December 31, 2020, the 2017 ESPP allowed for the issuance of up to 848,269 shares of common stock. As of June 30, 2021, 1,149,407 shares were available for grant under the 2017 ESPP.

In addition, the 2017 ESPP contains an "evergreen" provision, which allows for an increase in the number of shares of common stock available for issuance under the 2017 ESPP on the first day of each fiscal year beginning with fiscal year 2018. The increase in the number of shares shall be equal to the lowest of: 1% of the number of shares of common stock outstanding on the last day of the immediately preceding fiscal year or an amount determined by the Company’s Board of Directors or Compensation Committee. The number of shares available for grant under the 2017 ESPP increased by 318,375 shares on January 1, 2021 due to this provision.

The 2017 ESPP provides for six-month option periods commencing on March 1 and ending August 31 and commencing September 1 and ending February 28 of each calendar year. The first offering under the 2017 ESPP began on September 1, 2018.

Stock options

Under the 2007 Plan and the 2017 Plan, stock options may not be granted with exercise prices of less than fair market value on the date of the grant. Options generally vest ratably over a four-year period with 25% vesting on the first anniversary and the remaining 75% vesting ratably on a monthly basis over the remaining three years. These options expire ten years after the grant date. Activity under the 2007 Plan and the 2017 Plan was as follows:

		Weighted-average		Remaining contractual	Aggregate intrinsic value
	Options	exercise price		life (in years)	(in thousands)
Outstanding at December 31, 2020	2,494,045	$	17.73	7.27	$	71,760
Granted	295,241	$	68.49
Exercised	(392,379)	$	13.93
Cancelled	(119,902)	$	33.67
Outstanding at June 30, 2021	2,277,005	$	24.13	7.12	$	82,090
Vested and expected to vest at June 30, 2021	2,277,005	$	24.13	7.12	$	82,090
Exercisable at June 30, 2021	1,410,504	$	14.42	6.18	$	62,395

Using the Black-Scholes option pricing model, the weighted-average fair value of options granted to employees and directors during the six months ended June 30, 2021 and 2020 was $32.30 and $11.76 per share, respectively. The expense related to awards granted to employees was $1.5 million and $3.0 million for the three and six months ended June 30, 2021, respectively. The expense related to awards granted to employees was $1.3 million and $2.4 million for the three and six months ended June 30, 2020, respectively. The intrinsic value of stock options exercised was $3.9 million and $20.2 million for the three and six months ended June 30, 2021, respectively. The intrinsic value of stock options exercised was $1.7 million and $2.7 million for the three and six months ended June 30, 2020, respectively. Activity related to non-employee awards was not material to the three and six months ended June 30, 2021 and 2020.

Restricted stock

Restricted common stock awards represent shares of common stock issued to employees subject to forfeiture if the vesting conditions are not satisfied. Vesting occurs periodically at specified time intervals and specified percentages. No restricted common stock awards were granted or vested during the three and six months ended June 30, 2021. As of June 30, 2021, the Company had 39,806 shares of unvested restricted common stock with a weighted average grant date fair value of $3.12 per share.

Restricted stock units

Restricted stock units (RSUs) represent the right to receive shares of common stock upon meeting specified vesting requirements. In the six months ended June 30, 2021, the Company issued 234,426 RSUs to employees of the Company under the 2017 Plan. Under the terms of the agreements, 161,039 of the RSUs issued are subject to a four-year

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vesting schedule with 25% vesting on the first anniversary of the grant date and the remaining vesting 75% ratably on a monthly basis over the remaining three years; 53,119 of the RSUs are subject to a three-year vesting schedule with 33% vesting on the first anniversary of the grant date and the remaining vesting ratably on a monthly basis over the remaining two years; 4,540 of the RSUs are subject to a three-year vesting schedule with 33% vesting on the first anniversary of the grant date with the remaining vesting annually on the anniversary of the grant date over the remaining two years; 13,620 of the RSUs vest on December 31, 2021; and 2,108 vested immediately upon grant. A summary of RSU activity is as follows:

		Weighted-average
		grant date
		fair value
	Shares	per share
Unvested RSUs as of December 31, 2020	478,581	$	28.08
Granted	234,426	$	67.11
Vested	(133,732)	$	23.85
Cancelled	(46,949)	$	38.35
Unvested RSUs as of June 30, 2021	532,326	$	45.42

The expense related to awards granted to employees and directors was $2.0 million and $3.7 million for the three and six months ended June 30, 2021, respectively. The expense related to awards granted to employees and directors was $1.1 million and $2.0 million for the three and six months ended June 30, 2020, respectively.

As of June 30, 2021, there was $22.2 million of total unrecognized compensation cost related to unvested RSUs, which is expected to be recognized over the remaining weighted-average vesting period of 3.0 years.

10. Leases

The Company is a lessee under leases of offices, lab spaces, and certain office equipment. Some of the Company’s leases include options to extend the lease, and these options are included in the lease term to the extent they are reasonably certain to be exercised.

Summary of all lease costs recognized under ASC 842

The following table contains a summary of the lease costs recognized under ASC 842 and other information pertaining to the Company’s operating leases for the three and six months ended June 30, 2021 and 2020:

	Three Months Ended June 30,					Six Months Ended June 30,
Operating leases (in thousands)	2021			2020		2021			2020
Lease Costs (1)
Operating lease costs	$	663		$	667	$	1,334		$	1,327
Total lease cost	$	663		$	667	$	1,334		$	1,327
Other information
Operating cash flows used for operating leases	$	837		$	407	$	1,683		$	832
Weighted average remaining lease term (years)		9.6	years				9.6	years
Weighted average discount rate		9.73%					9.73%

(1) Short-term lease costs and variable lease costs incurred by the Company for the three and six months ended June 30, 2021 and 2020 were not material.

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11. Commitments and contingencies

Tufts University

In June 2007, the Company entered into a license agreement (the License Agreement) for certain intellectual property with Tufts University (Tufts). Tufts is a related party to the Company due to Tufts’ equity ownership in the Company and because a member of the Company’s Board of Directors was affiliated with Tufts. The License Agreement, which was subsequently amended, is exclusive and sublicensable, and will continue in effect on a country-by-country basis as long as there is a valid claim of a licensed patent in a country. The Company is committed to pay license and maintenance fees, prior to commercialization, in addition to low single digit royalties on direct sales and services and a royalty on sublicense income. During the three months ended June 30, 2021 and 2020 and the six months ended June 30, 2021 and 2020, the Company recorded royalty expense of $0.4 million, $0.2 million, $0.8 million, and $0.4 million, respectively, in cost of product revenue on the consolidated statements of operations.

Supply agreement

The Company’s supply agreement with STRATEC Biomedical required the Company to purchase a minimum number of commercial units over a seven-year period that ended in May 2021. Based on the number of commercial instruments purchased as of June 30, 2021, the Company has satisfied its required minimum purchase amount per the supply agreement.

Legal contingencies

The Company is subject to claims in the ordinary course of business; however, the Company is not currently a party to any pending or threatened litigation, the outcome of which would be expected to have a material adverse effect on its financial condition or the results of its operations. The Company accrues for contingent liabilities to the extent that the liability is probable and estimable.

12. Notes payable

Loan agreement

On April 14, 2014, the Company executed a loan agreement with a lender, as subsequently amended. As of June 30, 2021, there were no additional amounts available to borrow under the debt facility. The interest rate on this term loan is variable based on the greater of 8% or 8% plus the prime rate less 5.25%. Interest is paid monthly beginning the month following the borrowing date. At loan inception and in connection with the amendments, the Company issued the lender warrants to purchase shares of stock. The loan agreement also contains prepayment penalties and an end of term charge. Fees incurred upon execution of the agreements, and the fair value of warrants on the date of grant were accounted for as a reduction in the book value of debt and accreted through interest expense, using the effective interest rate method, over the term of the debt. Under the amended agreement, the Company is required to pay the loan principal in four equal installments starting July 1, 2021, with the final payment and end of term charge to be made on October 1, 2021.

As of June 30, 2021, debt payment obligations due based on principal payments are as follows (in thousands):

2021	$	7,688
Total	$	7,688

Non-cash interest expense related to debt discount amortization and accretion of end of term fees was $0.1 million or less for each of the three and six months ended June 30, 2021 and 2020.

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13. Collaboration and license arrangements

The Company has entered into certain licenses with other companies for use of the Company’s technology. These licenses have royalty components which the Company earns and recognizes as collaboration and license revenue throughout the year. The Company recognized revenue of $0.1 million and $0.4 million for the three and six months ended June 30, 2021, respectively, and less than $0.1 million and $0.2 million for the three and six months ended June 30, 2020, respectively, associated with these licenses.

As of June 30, 2021 and December 31, 2020, the Company had $0.5 million of deferred revenue related to ongoing negotiations with a diagnostics company.

Abbott Laboratories

On September 29, 2020, the Company entered into a Non-Exclusive License Agreement (the Abbott License Agreement) with Abbott Laboratories (Abbott). Pursuant to the terms of the Abbott License Agreement, the Company granted Abbott a non-exclusive, worldwide, royalty-bearing license, without the right to sublicense, under the Company’s bead-based single molecule detection patents (Licensed Patents) in the field of in vitro diagnostics. Abbott agreed to pay the Company an initial license fee of $10.0 million in connection with the execution of the Abbott License Agreement, which was recognized as license revenue during the 2020 fiscal year. Abbott has also agreed to pay the Company milestone fees subject to the achievement by Abbott of certain development, regulatory and commercialization milestones and low single-digit royalties on net sales of licensed products.

The Abbott License Agreement includes customary representations and warranties, covenants and indemnification obligations for a transaction of this nature. The Abbott License Agreement became effective upon signing and will continue until expiration of the last-to-expire Licensed Patent, or the agreement is earlier terminated. Under the terms of the Abbott License Agreement, the Company and Abbott each have the right to terminate the agreement for uncured material breach by, or insolvency of, the other party. Abbott may also terminate the Abbott License Agreement at any time without cause upon 60 days’ notice.

During the three and six months ended June 30, 2021, the Company recognized no revenue under the Abbott License Agreement.

14. Employee benefit plans

The Company sponsors a 401(k) savings plan for its employees. The Company may make discretionary contributions for each 401(k) plan year. During the three and six months ended June 30, 2021, the Company made contributions of $0.2 million and $0.4 million, respectively. During the three and six months ended June 30, 2020, the Company made contributions of $0.2 million and $0.3 million, respectively.

15. Goodwill and acquired intangible assets

As of June 30, 2021, the carrying amount of goodwill was $10.1 million. The following is a rollforward of the Company’s goodwill balance (in thousands):

	Goodwill
Balance as of December 31, 2020	$	10,460
Cumulative translation adjustment		(339)
Balance as of June 30, 2021	$	10,121

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Acquired intangible assets as of June 30, 2021 consist of the following (in thousands):

		June 30, 2021
		Gross				Cumulative		Net		Weighted
	Estimated Useful	Carrying		Accumulated		Translation		Carrying		Average
	Life (in years)	Value		Amortization		Adjustment		Value		Life Remaining (in years)
Know-how	8.5	$	13,000	$	(3,060)	$	860	$	10,800	6.50
Developed technology	7		1,650		(1,159)		—		491	3.59
Customer relationships	8.5 - 10		1,360		(706)		7		661	6.58
Non-compete agreements	5.5		340		(136)		18		222	3.50
Trade names	3		50		(50)		—		—	—
Total		$	16,400	$	(5,111)	$	885	$	12,174

Acquired intangible assets as of December 31, 2020 consist of the following (in thousands):

		December 31, 2020
		Gross				Cumulative		Net		Weighted
	Estimated Useful	Carrying		Accumulated		Translation		Carrying		Average
	Life (in years)	Value		Amortization		Adjustment		Value		Life Remaining (in years)
Know-how	8.5	$	13,000	$	(2,296)	$	1,374	$	12,078	6.99
Developed technology	7		1,650		(1,036)		—		614	4.09
Customer relationships	8.5 - 10		1,360		(618)		12		754	7.08
Non-compete agreements	5.5		340		(102)		31		269	3.99
Trade names	3		50		(49)		—		1	0.08
Total		$	16,400	$	(4,101)	$	1,417	$	13,716

The Company recorded amortization expense of $0.5 million and $1.0 million for three and six months ended June 30, 2021, respectively, and $0.5 million and $1.0 million for the three and six months ended June 30, 2020, respectively. Amortization relating to developed technology is recorded within research and development expenses, amortization of customer relationships is recorded within selling, general, and administrative expenses, amortization of trade names is recorded within selling, general and administrative expenses, amortization of non-compete agreements is recorded within selling, general, and administrative expenses, and amortization of know-how is recorded within cost of product revenue.

Future estimated amortization expense of acquired intangible assets as of June 30, 2021 is as follows (in thousands):

For the Years Ended December 31,	Estimated Amortization Expense
Current year (2021)	$	1,002
2022		1,930
2023		1,848
2024		1,733
2025		1,617
Thereafter		4,044
	$	12,174

16. Related party transactions

The Company entered into the License Agreement for certain intellectual property with Tufts (see Note 11). Tufts is a related party to the Company due to Tufts’ equity ownership in the Company and because a member of the Company’s Board of Directors was affiliated with Tufts. During the three and six months ended June 30, 2021 and the three and six months ended June 30, 2020, the Company recorded royalty expense of $0.4 million, $0.8 million, $0.2 million, and $0.4 million respectively, in cost of product revenue on the consolidated statements of operations.

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During the year ended December 31, 2017, Harvard University became a related party because a member of the Company’s Board of Directors is affiliated with Harvard University. Revenue recorded from sales to Harvard University and its affiliates was $0.2 million for each of the three and six months ended June 30, 2021. Revenue recorded from sales to Harvard University and its affiliates was less than $0.1 million for each of the three and six months ended June 30, 2020.

17. Accumulated other comprehensive income (loss)

The following shows the changes in the components of accumulated other comprehensive income (loss) for the six months ended June 30, 2021 and 2020 which consisted of only foreign currency translation adjustments for the periods shown (in thousands):

			Accumulated
	Cumulative		Other
	Translation		Comprehensive
	Adjustment		Income
Balance - December 31, 2020	$	2,434	$	2,434
Current period accumulated other comprehensive loss		(856)		(856)
Balance - June 30, 2021	$	1,578	$	1,578
			Accumulated
	Cumulative		Other
	Translation		Comprehensive
	Adjustment		Loss
Balance - December 31, 2019	$	(153)	$	(153)
Current period accumulated other comprehensive loss		127		127
Balance - June 30, 2020	$	(26)	$	(26)

18. Subsequent events

The Company had no significant subsequent events for the period June 30, 2021 through the filing date of this Quarterly Report on Form 10-Q.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion and analysis of our financial condition and results of operations together with our condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q and our audited financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (SEC). In addition to historical information, the following discussion contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results, performance or experience could differ materially from what is indicated by any forward-looking statement due to various important factors, risks and uncertainties, including, but not limited to, those set forth under “Special Note Regarding Forward-Looking Statements” included elsewhere in this quarterly report or under “Risk Factors” in Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2020 as may be updated by “Part II, Item 1A, Risk Factors” of our subsequently filed Quarterly Reports on Form 10-Q.

Overview

We are a life sciences company that has developed next generation, ultra-sensitive digital immunoassay platforms that advance precision health for life sciences research and diagnostics. Our platforms are based on our proprietary digital “Simoa” detection technology. Our Simoa bead-based and planar array platforms enable customers to reliably detect protein biomarkers in extremely low concentrations in blood, serum and other fluids that, in many cases, are undetectable using conventional, analog immunoassay technologies, and also allow researchers to define and validate the function of novel protein biomarkers that are only present in very low concentrations and have been discovered using technologies such as mass spectrometry. These capabilities provide our customers with insight into the role of protein biomarkers in human health that has not been possible with other existing technologies and enable researchers to unlock unique insights into the continuum between health and disease. We believe this greater insight will enable the development of novel therapies and diagnostics and facilitate a paradigm shift in healthcare from an emphasis on treatment to a focus on earlier detection, monitoring, prognosis and, ultimately, prevention. We are currently focusing on protein detection, which we believe is an area of significant unmet need and where we have significant competitive advantages. However, in addition to enabling new applications and insights in protein analysis, our Simoa platforms have also demonstrated applicability across other testing applications, including detection of nucleic acids and small molecules.

We currently sell most of our products for life science research, primarily to laboratories associated with academic and governmental research institutions, as well as pharmaceutical, biotechnology and contract research companies, through a direct sales force and support organizations in North America and Europe, and through distributors or sales agents in other select markets, including Australia, China, Czech Republic, India, Israel, Japan, Lebanon, Mexico, Qatar, Saudi Arabia, Singapore, South Korea, and Taiwan.

Our instruments are designed to be used either with assays fully developed by us, including all antibodies and supplies required to run the tests, or with “homebrew” kits where we supply some of the components required for testing, and the customer supplies the remaining required elements. Accordingly, our installed instruments generate a recurring revenue stream. We believe that our recurring consumable revenue is driven by our customers’ ability to extract more valuable data using our platform and to process a large number of samples quickly with little hands-on preparation.

We commercially launched our first immunoassay platform, the Simoa HD-1, in January 2014. The HD-1 is based on our bead-based technology, and assays run on the HD-1 are fully automated. We initiated commercial launch of the SR-X instrument in December 2017. The SR-X utilizes the same Simoa bead-based technology and assay kits as the HD-1 in a compact benchtop form with a lower price point, more flexible assay preparation, and a wider range of applications. In July 2019, we launched the Simoa HD-X, an upgraded version of the Simoa HD-1, which replaces the HD-1. The HD-X has been designed to deliver significant productivity and operational efficiency improvements, as well as greater user flexibility. We began shipping and installing HD-X instruments at customer locations in the third quarter of 2019. As the installed base of the Simoa instruments increases, total consumables revenue overall is expected to

26

increase. We believe that consumables revenue should be subject to less period-to-period fluctuation than our instrument sales revenue, and will become an increasingly important contributor to our overall revenue.

On January 30, 2018, we acquired Aushon Biosystems, Inc. (Aushon) for $3.2 million in cash, with an additional payment of $0.8 million made in July 2018, six months after the acquisition date. With the acquisition of Aushon, we acquired a CLIA certified laboratory, as well as Aushon’s proprietary sensitive planar array detection technology. Leveraging our proprietary sophisticated Simoa image analysis and data analysis algorithms, we further refined this planar array technology to develop the SP-X instrument to provide the same Simoa sensitivity found in our Simoa bead-based platform. We initiated an early-access program for the SP-X instrument in January 2019, with the full commercial launch commenced in April 2019.

On August 1, 2019, we completed our acquisition of UmanDiagnostics AB (Uman) for an aggregate purchase price of $21.2 million, comprised of (i) $15.7 million in cash plus (ii) 191,152 shares of our common stock (representing $5.5 million based on the closing prices of our common stock on the Nasdaq Global Market on July 1, 2019 and August 1, 2019, the dates of issuance). The acquisition closed with respect to 95% of the outstanding shares of capital stock of Uman on July 1, 2019 and with respect to the remaining 5% of the outstanding shares of capital stock of Uman on August 1, 2019. Uman supplies neurofilament light (Nf-L) antibodies and ELISA kits, which are widely recognized by researchers and biopharmaceutical and diagnostics companies world-wide as the premier solution for the detection of Nf-L to advance the development of therapeutics and diagnostics for neurodegenerative conditions. 

On September 29, 2020, we entered into a Non-exclusive License Agreement (the Abbott License Agreement) with Abbott Laboratories (Abbott). Pursuant to the terms of the Abbott License Agreement, we granted Abbott a non-exclusive, worldwide, royalty-bearing license, without the right to sublicense, under our bead-based single molecule detection patents in the field of in vitro diagnostics. Abbott has paid us an initial license fee of $10.0 million in connection with the execution of the Abbott License Agreement, which was recognized as collaboration and license revenue for the three months ended September 30, 2020. In addition, during the three months ended September 30, 2020, we recognized as collaboration and license revenue approximately $1.2 million of previously deferred revenue upon entering into the Abbott License Agreement. Abbott has also agreed to pay us milestone fees subject to the achievement by Abbott of certain development, regulatory and commercialization milestones and low single digit royalties on net sales of licensed products.

We are subject to ongoing uncertainty concerning the SARS-CoV-2 (COVID-19) pandemic, including its length and severity and its effect on our business. During the first and second quarters of 2020, we implemented a resiliency plan focused on the health and safety of our employees and maintaining continuity of our operations. We saw an impact on instrument revenue due to limitations on our ability to access certain customer sites and complete instrument installations, as well as an impact on consumables revenue from interruptions in certain customer laboratories through the first quarter of 2021. As customers began returning to normal operations in the second quarter of 2021, we have seen less of an impact related to COVID-19 related shutdowns. However, we expect COVID-19 related challenges to continue for the foreseeable future and potentially increase if variants result in new shutdowns.

In view of the COVID-19 pandemic, we have adjusted our operations to expand capacity in our Accelerator Laboratory to support customers whose operations have been disrupted and to sustain clinical trials. We also determined that our cytokine assay technology provides researchers with important and differentiated tools to study disease progression, cytokine release syndrome, and patient-treatment response in the fight against COVID-19, and began developing a SARS- CoV-2 semi-quantitative IgG assay and a SARS-CoV-2 antigen detection assay, and prototyping a high-definition multiplex SARS-CoV-2 serology assay. In December 2020, the United States Food and Drug Administration (FDA) issued an Emergency Use Authorization (EUA) for our Simoa Semi-Quantitative SARS-CoV-2 IgG Antibody Test, and in January 2021, the FDA issued an EUA for our Simoa SARS-CoV-2 N Protein Antigen Test, each of which is run on our HD-X instrument. We are currently in the final stages of working with the FDA to extend our authorization for additional sample types, including nasal swabs, and saliva, as well as extending our EUA label to include asymptomatic testing and validation of the test in detecting all variants of concern, including the COVID-19 Delta variant. We are exploring extending the test to home-based sample collection and pooling to enable larger scale testing.

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In September 2020, we entered into a workplan 2 award (WP2) with the National Institute of Health (NIH) under the Rapid Acceleration of Diagnostics (RADx) program. This contract, which has a total award value of $18.2 million, is intended to accelerate the continued development, scale-up and deployment of our novel SARS-CoV-2 antigen test. Initial early feasibility of this test was funded in part through the workplan 1 award (WP1) we were granted in June 2020. WP2 supports clinical validation of the test in support of the EUA submissions with the FDA and provides funding to expand assay kit manufacturing capacity and commercial deployment readiness. Contract funding is subject to achievement of pre-defined milestones and the contract period runs through September 2021.

The COVID-19 situation remains dynamic and there still remains significant uncertainty as to the length and severity of the pandemic, the actions that may be taken by government authorities, the impact to the business of our customers and suppliers, the long-term economic implications and other factors identified in “Part I, Item 1A, Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2020 as may be updated by “Part II, Item 1A, Risk Factors” of our subsequently filed Quarterly Reports on Form 10-Q. We will continue to evaluate the nature and extent of the impact to our business, financial condition, and operating results.

As of June 30, 2021, we had cash and cash equivalents of $430.8 million. Other than the third quarter of 2020, since inception, we have incurred net losses. Our net loss was $31.5 million, $40.8 million, and $31.5 million for the years ended December 31, 2020, 2019, and 2018, respectively, and $22.0 million and $23.9 million for the six months ended June 30, 2021 and 2020, respectively. As of June 30, 2021, we had an accumulated deficit of $269.8 million and stockholders' equity of $466.0 million. We expect to continue to incur significant expenses and operating losses at least through the next 24 months. We expect our expenses will increase substantially as we:

● expand our sales and marketing efforts to further commercialize our products;

● strategically acquire companies or technologies that may be complementary to our business;

● expand our research and development efforts to improve our existing products and develop and launch new products, particularly if any of our products are deemed by the FDA, to be medical devices or otherwise subject to additional regulation by the FDA;

● seek premarket approval (PMA) 510(k) clearance, or EUA, from the FDA for our existing products or new products if or when we decide to market products for use in the prevention, diagnosis or treatment of a disease or other condition;

● hire additional personnel and continue to grow our employee headcount;

● enter into collaboration arrangements, if any, or in-license other products and technologies;

● expand assay kit manufacturing capacity and commercial development readiness in connection with WP2;

● add operational, financial and management information systems; and

● continue to incur increased costs as a result of operating as a public company.

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Results of Operations

Comparison of the Three Months Ended June 30, 2021 and June 30, 2020 (dollars in thousands):

	Three Months Ended				Three Months Ended
	June 30,		% of		June 30,		% of			$		%
	2021		revenue		2020		revenue			change		change
Product revenue	$	18,676	74	%	$	6,790	52	%		$	11,886	175	%
Service and other revenue		5,648	22	%		6,317	48	%			(669)	(11)	%
Collaboration and license revenue		105	—	%		23	—	%			82	357	%
Grant revenue		942	4	%		—	—	%			942	100	%
Total revenue		25,371	100	%		13,130	100	%			12,241	93	%
Cost of goods sold:
Cost of product revenue		8,114	32	%		5,416	41	%			2,698	50	%
Cost of service revenue		3,383	13	%		2,501	19	%			882	35	%
Total costs of goods sold and services		11,497	45	%		7,917	60	%			3,580	45	%
Gross profit		13,874	55	%		5,213	40	%			8,661	166	%
Operating expenses:
Research and development		6,754	27	%		4,312	33	%			2,442	57	%
Selling, general, and administrative		20,788	82	%		13,102	100	%			7,686	59	%
Total operating expenses		27,542	109	%		17,414	133	%			10,128	58	%
Loss from operations		(13,668)	(54)	%		(12,201)	(93)	%			(1,467)	(12)	%
Interest expense, net		(165)	(1)	%		(108)	(1)	%	`		(57)	(53)	%
Other income (expense), net		1,977	8	%		(11)	—	%			1,988	18,073	%
Loss before income taxes		(11,856)	(47)	%		(12,320)	(94)	%			464	4	%
Income tax (provision) benefit		(41)	—	%		18	—	%			(59)	(328)	%
Net loss	$	(11,897)	(47)	%	$	(12,302)	(94)	%		$	405	3	%

Revenue

Total revenue increased by $12.2 million, or 93%, to $25.4 million for the three months ended June 30, 2021 as compared to $13.1 million for the three months ended June 30, 2020. Product revenue consisted of sales of instruments totaling $5.8 million and sales of consumables and other products of $12.8 million for the three months ended June 30, 2021. Product revenue consisted primarily of sales of instruments totaling $2.8 million and sales of consumables and other products of $4.0 million for the three months ended June 30, 2020. The increase in product revenue of $11.9 million was primarily due to the increased ability to install instruments as customer sites reopened from COVID-19 related shutdowns that impacted results from operations during the three months ended June 30, 2020. In addition, as the installed base of instruments increased from June 30, 2020 to June 30, 2021, the consumable sales increased as customers opened from COVID-19 related shutdowns. The decrease in service and other revenue of $0.7 million was primarily due to a decrease in our research services revenue as customers were better able to perform services themselves as their sites reopened from COVID-19 related shutdowns, as well as open headcount within our services personnel. We had $0.1 million and less than $0.1 million in collaboration and license revenue during the three months ended June 30, 2021 and 2020, respectively, related to licensing technology and intellectual property. Grant revenue of $0.9 million consisted of revenue related to WP2 recognized during the three months ended June 30, 2021. We did not have any grant revenue during the three months ended June 30, 2020.

Cost of Goods Sold and Services

Cost of product revenue increased by $2.7 million, or 50%, to $8.1 million for the three months ended June 30, 2021 as compared to $5.4 million for the three months ended June 30, 2020. The increase was primarily due to our increase in volume of product revenue. Cost of service revenue increased to $3.4 million for the three months ended June 30, 2021 from $2.5 million for the three months ended June 30, 2020. The increase was primarily due to increased

29

personnel costs from the build out of our field service organization. Overall cost of goods sold as a percentage of revenue decreased to 45% of total revenue for the three months ended June 30, 2021 as compared to 60% for the three months ended June 30, 2020, primarily as a result of the significant increase in grant revenue, increased manufacturing efficiencies, and an increase in average selling prices of our instruments.

Research and Development Expense

Research and development expense increased by $2.4 million, or 57%, to $6.8 million for the three months ended June 30, 2021 as compared to $4.3 million for the three months ended June 30, 2020. The increase was primarily due to compensation, development, materials, and other expenses related to work under WP2 incurred during the three months ended June 30, 2021, as well as increased overall headcount in research and development.

Selling, General, and Administrative Expense

Selling, general and administrative expense increased by $7.7 million for the three months ended June 30, 2021 as compared to the same period in 2020. The increase was primarily due to headcount additions in various departments as we build out our organization to support growth.

Interest Expense, Net and Other Income (Expense), Net

Interest expense, net and other income (expense), net was income of $1.8 million for the three months ended June 30, 2021, as compared to expense of $0.1 million for the three months ended June 30, 2020, primarily due to other income of $2.1 million recognized during the three months ended June 30, 2021 related to an employee retention tax credit established under the Coronavirus Aid, Relief, and Economic Securities Act (CARES Act).

Income Tax (Provision) Benefit

Income tax provision was less than $0.1 million for the three months ended June 30, 2021 as compared to a benefit of less than $0.1 million for the same period in 2020. The change is primarily due to a tax provision recorded on the operating results of our foreign subsidiaries during the three months ended June 30, 2021.

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Comparison of the Six Months Ended June 30, 2021 and June 30, 2020 (dollars in thousands):

	Six Months Ended				Six Months Ended
	June 30,		% of		June 30,		% of			$		%
	2021		revenue		2020		revenue			change		change
Product revenue	$	36,924	70	%	$	16,623	57	%		$	20,301	122	%
Service and other revenue		12,057	23	%		12,079	42	%			(22)	—	%
Collaboration and license revenue		366	1	%		155	1	%			211	136	%
Grant revenue		3,233	6	%		—	—	%			3,233	—	%
Total revenue		52,580	100	%		28,857	100	%			23,723	82	%
Cost of goods sold:
Cost of product revenue		15,594	30	%		11,602	40	%			3,992	34	%
Cost of service revenue		6,763	13	%		5,229	18	%			1,534	29	%
Total costs of goods sold, services, and licenses		22,357	43	%		16,831	58	%			5,526	33	%
Gross profit		30,223	57	%		12,026	42	%			18,197	151	%
Operating expenses:
Research and development		13,437	26	%		8,580	30	%			4,857	57	%
Selling, general, and administrative		40,243	77	%		27,375	95	%			12,868	47	%
Total operating expense		53,680	102	%		35,955	125	%			17,725	49	%
Loss from operations		(23,457)	(45)	%		(23,929)	(82)	%			472	2	%
Interest (expense) income, net		(328)	(1)	%		53	—	%	`		(381)	(719)	%
Other income (expense), net		1,783	3	%		(178)	(1)	%			1,961	1,102	%
Loss before income taxes		(22,002)	(42)	%		(24,054)	(83)	%			2,052	9	%
Income tax benefit		1	—	%		142	—	%			(141)	(99)	%
Net loss	$	(22,001)	(42)	%	$	(23,912)	(83)	%		$	1,911	8	%

Revenue

Total revenue increased by $23.7 million, or 82%, to $52.6 million for the six months ended June 30, 2021 as compared to $28.9 million for the six months ended June 30, 2020. Product revenue consisted of sales of instruments totaling $12.8 million and sales of consumables and other products of $24.1 million for the six months ended June 30, 2021. Product revenue consisted primarily of sales of instruments totaling $6.5 million and sales of consumables and other products of $10.1 million for the six months ended June 30, 2020. The increase in product revenue of $20.3 million was primarily due to the increased ability to install instruments as customer sites reopened from COVID-19 related shutdowns that impacted results from operations during the six months ended June 30, 2020. In addition, as the installed base of instruments increased from June 30, 2020 to June 30, 2021, the consumable sales increased as customers opened from COVID-19 related shutdowns. The decrease in service and other revenue of less than $0.1 million was primarily due to a decrease in our research services revenue as customers were better able to perform services themselves as their sites reopened from COVID-19 related shutdowns, as well as open headcount within our services personnel. We had $0.4 million and $0.2 million in collaboration and license revenue during the six months ended June 30, 2021 and 2020, respectively, related to licensing technology and intellectual property. Grant revenue of $3.2 million consisted of revenue related to WP2 recognized during the six months ended June 30, 2021. We did not have any grant revenue during the six months ended June 30, 2020.

Cost of Goods Sold and Services

Cost of product revenue increased by $4.0 million, or 34%, to $15.6 million for the six months ended June 30, 2021 as compared to $11.6 million for the six months ended June 30, 2020. The increase was primarily due to our increase in volume of product revenue. Cost of service revenue increased to $6.8 million for the six months ended June 30, 2021 from $5.2 million for the six months ended June 30, 2020. The increase was primarily due to increased personnel costs from the build out of our field service organization. Overall cost of goods sold as a percentage of revenue decreased to 43% of total revenue for the six months ended June 30, 2021 as compared to 58% for the six

31

months ended June 30, 2020, primarily as a result of the significant increase in grant revenue, increased manufacturing efficiencies, and an increase in average selling prices of our instruments.

Research and Development Expense

Research and development expense increased by $4.9 million, or 57%, to $13.4 million for the six months ended June 30, 2021 as compared to $8.6 million for the six months ended June 30, 2020. The increase was primarily due to compensation, development, materials, and other expenses related to work under WP2 incurred during the six months ended June 30, 2021, as well as increased overall headcount in research and development.

Selling, General, and Administrative Expense

Selling, general and administrative expense increased by $12.9 million for the six months ended June 30, 2021 as compared to the same period in 2020. The increase was primarily due to headcount additions in various departments as we build out our organization to support growth.

Interest (Expense) Income, Net and Other Income (Expense), Net

Interest (expense) income, net and other income (expense), net was income of $1.5 million for the six months ended June 30, 2021, as compared to expense of $0.1 million for the six months ended June 30, 2020, primarily due to other income of $2.1 million recognized during the six months ended June 30, 2021 related to an employee retention tax credit established under the CARES Act.

Income Tax Benefit

Income tax benefit decreased by $0.1 million for the six months ended June 30, 2021 as compared to the same period in 2020. The change is primarily due to the decrease in the tax benefit recorded on the operating results of our foreign subsidiaries.

Liquidity and Capital Resources

To date, we have financed our operations principally through equity offerings, borrowings from credit facilities and revenue from our commercial operations.

Equity Offerings

On August 6, 2020, we entered into an underwriting agreement Leerink and Cowen, as representatives of the several underwriters, relating to an underwritten public offering of approximately 3.0 million shares of common stock, par value $0.001 per share. The underwritten public offering resulted in gross proceeds of $97.6 million. We incurred $6.2 million in issuance costs associated with the underwritten public offering, resulting in net proceeds of $91.4 million.

On February 3, 2021, we entered into an underwriting agreement with Goldman Sachs & Co. LLC, Leerink, and Cowen, as representatives of the several underwriters, relating to an underwritten public offering of 4,107,142 shares of common stock at a public offering price of $70.00 per share. We received $287.5 million in gross proceeds and approximately $269.7 million in net proceeds.

Loan Facility with Hercules

On April 14, 2014, we executed a loan agreement with Hercules Capital, Inc. (Hercules), as subsequently amended most recently in April 2019. As of June 30, 2021 and December 31, 2020, our outstanding long term debt balance was $7.7 million. The interest rate on this term loan was variable based on a calculation of 8% plus the prime rate less 5.25%, with a minimum interest rate of 8%. Interest was to be paid monthly beginning the month following the

32

borrowing date. Under the amended agreement, we are required to pay the loan principal in four equal installments starting July 1, 2021, with the final principal payment and end of term charge to be made on October 1, 2021.

The loan agreement contains negative covenants restricting our activities, including limitations on dispositions, mergers or acquisitions, incurring indebtedness or liens, paying dividends or making investments and certain other business transactions. There are no financial covenants associated with the loan agreement. The obligations under the loan agreement are subject to acceleration upon the occurrence of specified events of default, including a material adverse change in our business, operations or financial or other condition, which is subjective in nature. We have determined that the risk of subjective acceleration under the material adverse events clause is not probable and therefore have classified the outstanding principal in current and long-term liabilities based on scheduled principal payments.

Debt principal repayments, including the end of term fees, due as of June 30, 2021 are (in thousands):

Year ending December 31, 2021	$	7,738
	$	7,738

Cash Flows

The following table presents our cash flows for each period presented (in thousands):

	Six Months Ended June 30,
	2021		2020
Net cash used in operating activities	$	(23,838)	$	(20,600)
Net cash used in investing activities		(2,129)		(1,361)
Net cash provided by financing activities		275,706		1,476
Net increase (decrease) in cash and cash equivalents	$	249,739	$	(20,485)

Net Cash Used in Operating Activities

We derive cash flows from operations primarily from the sale of our products and services. Our cash flows from operating activities are also significantly influenced by our use of cash for operating expenses to support the growth of our business. We have historically experienced negative cash flows from operating activities as we have developed our technology, expanded our business and built our infrastructure and this may continue in the future.

Net cash used in operating activities was $23.8 million during the six months ended June 30, 2021. The net cash used in operating activities primarily consisted of the net loss of $22.0 million offset by non-cash charges of $7.0 million of stock-based compensation expense and $2.3 million of depreciation and amortization expense. Cash used as a result of changes in operating assets and liabilities of $11.8 million was primarily due to an increase in inventory of $6.8 million, a decrease in accrued compensation and benefits, other accrued expenses and other current liabilities of $3.9 million, and an increase in prepaid expenses and other assets of $3.0 million, offset by a decrease in accounts receivable of $1.7 million.

Net cash used in operating activities was $20.6 million during the six months ended June 30, 2020. The net cash used in operating activities primarily consisted of the net loss of $23.9 million offset by non-cash charges of $4.6 million of stock-based compensation expense and $2.1 million of depreciation and amortization expense. Cash used as a result of changes in operating assets and liabilities of $3.8 million was primarily due to an increase in inventory of $3.5 million, a decrease in accounts receivable of $1.4 million, a decrease in accrued compensation and benefits, other accrued expenses and other current liabilities of $1.0 million, and a decrease in accounts payable of $1.0 million.

33

Net Cash Used in Investing Activities

Historically, our primary investing activities have consisted of capital expenditures for the purchase of capital equipment to support our expanding infrastructure and work force. We expect to continue to incur additional costs for capital expenditures related to these efforts in future periods.

We used $2.1 million of cash during the six months ended June 30, 2021, primarily related to $7.3 million in purchases of property and equipment, offset by $5.2 million in grant proceeds related to WP2.

We used $1.4 million of cash in investing activities during the six months ended June 30, 2020, for the purchase of property and equipment.

Net Cash Provided by Financing Activities

Historically, we have financed our operations principally through private placements of our stock, borrowings from credit facilities, and revenues from our commercial operations.

Financing activities provided $275.7 million of cash during the six months ended June 30, 2021, primarily from $269.7 million in net proceeds from our underwritten public offering during the first quarter of 2021, and $5.5 million in proceeds from common stock option exercises.

Financing activities provided $1.5 million of cash during the six months ended June 30, 2020, primarily from $1.1 million in proceeds from stock options exercised and $0.4 million in proceeds from stock purchases through our 2017 ESPP.

Capital Resources

Other than the third quarter of 2020, since inception, we have incurred net losses, and we also expect that our operating expenses will increase as we continue to increase our marketing efforts to drive adoption of our commercial products. Additionally, as a public company, we have incurred and will continue to incur significant audit, legal and other expenses that we did not incur as a private company. Our liquidity requirements have historically consisted, and we expect that they will continue to consist, of sales and marketing expenses, research and development expenses, working capital, debt service and general corporate expenses.

We believe cash generated from commercial sales, our current cash and cash equivalents, and interest income we earn on these balances will be sufficient to meet our anticipated operating cash requirements for at least the next 12 months. In the future, we expect our operating and capital expenditures to increase as we increase headcount, expand our sales and marketing activities and grow our customer base. Our estimates of the period of time through which our financial resources will be adequate to support our operations and the costs to support research and development and our sales and marketing activities are forward-looking statements and involve risks and uncertainties and actual results could vary materially and negatively as a result of a number of factors, including the factors discussed in Item 1A, "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2020. We have based our estimates on assumptions that may prove to be wrong and we could utilize our available capital resources sooner than we currently expect. Our future funding requirements will depend on many factors, including:

● market acceptance of our products, including our SP-X and HD-X instruments; 

● the cost and timing of establishing additional sales, marketing and distribution capabilities; 

● the cost of our research and development activities; 

● our ability to enter into collaborations in the future, and the success of any such collaborations; 

● the cost and timing of potential regulatory clearances or approvals that may be required in the future for our products;

● the effects of the COVID-19 pandemic; and 

● the effect of competing technological and market developments.

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If the conditions for raising capital are favorable, we may seek to finance future cash needs through public or private equity or debt offerings or other financings. On November 6, 2020, we filed an automatically effective shelf registration statement with the SEC. Each issuance of securities under the shelf registration statement will require the filing of a prospectus supplement identifying the amount and terms of securities to be issued.  The registration statement does not limit the amount of securities that may be issued thereunder. Our ability to issue securities is subject to market conditions and other factors. This registration statement will expire on November 6, 2023, three years after its date of effectiveness. However, 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 restricting our operations or our ability to incur additional 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.

Contractual Obligations and Commitments

As of June 30, 2021, there have been no material changes to our contractual obligations and commitments from those described under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for the year ended December 31, 2020.

Off-Balance Sheet Arrangements

We did not have, during the periods presented, and we do not currently have, any off-balance sheet arrangements, as defined under applicable SEC rules.

Critical Accounting Policies, Significant Judgments and Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States, or U.S. GAAP, requires management to make estimates and assumptions that impact the reported amounts of assets, liabilities, revenues, and expenses and the disclosure of assets and liabilities in our financial statements and accompanying notes. The most significant assumptions used in the financial statements are the underlying assumptions used in revenue recognition, fair value of assets acquired and liabilities assumed in acquisitions, valuation allowances recorded against deferred tax assets, and valuation of inventory. We base estimates and assumptions on historical experience when available and on various factors that we determined to be reasonable under the circumstances. We evaluate our estimates and assumptions on an ongoing basis. Our actual results may differ from these estimates under different assumptions or conditions.

Our critical accounting policies and significant estimates that involve a higher degree of judgment and complexity are described under “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies, Significant Judgments and Estimates” included in our Annual Report on Form 10-K for the year ended December 31, 2020. We are considered to be an “emerging growth company” (EGC) as defined in the Jumpstart Our Business Startups Act of 2012, as amended (JOBS Act). The JOBS Act provides that an EGC can take advantage of an extended transition period for complying with new or revised accounting standards. Thus, an EGC can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. Because the market value of our common stock that was held by non-affiliates exceeded $700 million as of June 30, 2021, we will cease to be an EGC as of December 31, 2021. As a result, starting in 2022, we will be required to adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies.

There have been no material changes to our critical accounting policies and estimates as disclosed therein, with the exception of our adoption of recent accounting pronouncements, as discussed below.

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Recent Accounting Pronouncements

We adopted the Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2016-13, Financial Instruments — Credit Losses: Measurement of Credit Losses on Financial Instruments (ASU 2016-13). See Notes 2 and 7 to our unaudited financial statements included elsewhere in this Quarterly Report on Form 10-Q for more information.

We adopted the FASB ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15). See Note 2 to our unaudited financial statements included elsewhere in this Quarterly Report on Form 10-Q for more information.

We adopted the FASB ASU No. 2019-12, Simplifying the Accounting for Income Taxes (ASU 2019-12). See Note 2 to our unaudited financial statements included elsewhere in this Quarterly Report on Form 10-Q for more information.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

At June 30, 2021, there have been no material changes to the market risk information described under “Quantitative and Qualitative Disclosures About Market Risk” included in the Annual Report on Form 10-K for the year ended December 31, 2020.

Item 4. Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures. Our principal executive officer and principal financial officer, after evaluating the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q, have concluded that, based on such evaluation, our disclosure controls and procedures were effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and is accumulated and communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

(b) Changes in Internal Control over Financial Reporting. There were no changes in our internal control over financial reporting identified in connection with the evaluation of such internal control that occurred during the three months ended June 30, 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

We are not currently a party to any material legal proceedings.

Item 1A. Risk Factors

There have been no material changes to the risk factors described in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 5, 2021.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Not applicable.

36

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Not applicable.

37

Item 6. Exhibits

The following is a list of exhibits filed as part of this Quarterly Report on Form 10-Q.

Exhibit Number		Exhibit Description	Filed Herewith	Incorporated by Reference herein from Form or Schedule	Filing Date	SEC File/ Reg. Number
10.1		Employment Agreement between Dr. Masoud Toloue and the Company dated May 10, 2021.		X	5/11/2021	001-38319
10.2		Employment Agreement between Michael Doyle and the Company dated June 22, 2021.		X	6/28/2021	001-38319
31.1		Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.	X
31.2		Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.	X
32.1		Certifications of the Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	X
101	.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.	X
	.SCH	XBRL Taxonomy Extension Schema Document.	X
	.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.	X
	.DEF	XBRL Taxonomy Extension Definition.	X
	.LAB	XBRL Taxonomy Extension Label Linkbase Document.	X

38

	PRE	XBRL Taxonomy Extension Presentation Linkbase Document.	X
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).	X

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	QUANTERIX CORPORATION
Dated: August 5, 2021	By:	/s/ E. Kevin Hrusovsky
		E. Kevin Hrusovsky
		Chairman, President and Chief Executive Officer
		(principal executive officer)

Dated: August 5, 2021	By:	/s/ Michael Doyle
		Michael Doyle
		Chief Financial Officer
		(principal financial officer and principal accounting officer)

39

EX-31.1

Exhibit 31.1

CERTIFICATIONS UNDER SECTION 302

I, E. Kevin Hrusovsky, certify that:

1.           I have reviewed this quarterly report on Form 10-Q of Quanterix Corporation;

2.           Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.           Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.           The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)            designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)           designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)            evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)           disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.           The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)            all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)           any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 5, 2021

/s/ E.Kevin Hrusovsky

E. Kevin Hrusovsky

Chairman, President and Chief Executive Officer

(principal executive officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS UNDER SECTION 302

I, Michael Doyle, certify that:

1.           I have reviewed this quarterly report on Form 10-Q of Quanterix Corporation;

2.           Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.           Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.           The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)            designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)           designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)            evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)           disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.           The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)            all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)           any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 5, 2021

/s/ Michael Doyle

Michael Doyle

Chief Financial Officer

(principal financial officer and principal accounting officer)

EX-32.1

Exhibit 32.1

CERTIFICATIONS UNDER SECTION 906

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), each of the undersigned officers of Quanterix Corporation, a Delaware corporation (the “Company”), does hereby certify, to such officer’s knowledge, that:

The Quarterly Report for the period ended June 30, 2021 (the “Form 10-Q”) of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 5, 2021	/s/ E. Kevin Hrusovsky
	E. Kevin Hrusovsky
	Chairman, President and Chief Executive Officer
Dated: August 5, 2021	/s/ Michael Doyle
	Michael Doyle
	Chief Financial Officer

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2021	Jul. 29, 2021
Cover [Abstract]
Document Type	10-Q
Document Period End Date	Jun. 30, 2021
Entity Registrant Name	Quanterix Corp
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-38319
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-8957988
Entity Address, Address Line One	900 Middlesex Turnpike
Entity Address, City or Town	Billerica
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01821
City Area Code	617
Local Phone Number	301-9400
Title of 12(g) Security	Common Stock, $0.001 par value per share
Trading Symbol	QTRX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		36,522,840
Entity Central Index Key	0001503274
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 430,780	$ 181,584
Accounts receivable (less allowance for credit losses of $377 and $370 as of June 30, 2021 and December 31, 2020, respectively; including $134 and $172 due from related parties as of June 30, 2021 and December 31, 2020, respectively)	15,430	17,184
Inventory	21,225	14,856
Prepaid expenses and other current assets	9,005	5,981
Total current assets	476,440	219,605
Restricted cash	1,400	1,000
Property and equipment, net	15,778	13,912
Intangible assets, net	12,174	13,716
Goodwill	10,121	10,460
Right-of-use assets	11,754	11,995
Other non-current assets	377	357
Total assets	528,044	271,045
Current liabilities:
Accounts payable (including $10 and $14 to related parties as of June 30, 2021 and December 31, 2020, respectively)	6,862	6,799
Accrued compensation and benefits	8,919	10,777
Other accrued expenses (including $8 and $1,377 to related parties as of June 30, 2021 and December 31, 2020, respectively)	5,083	4,845
Deferred revenue (including $45 and $90 with related parties as of June 30, 2021 and December 31, 2020, respectively)	6,149	5,421
Current portion of long term debt	7,716	7,673
Short term lease liabilities	1,322	1,234
Other current liabilities	1,624	3,054
Total current liabilities	37,675	39,803
Deferred revenue, net of current portion	740	577
Long term lease liabilities	21,210	21,891
Deferred tax liabilities	2,409	2,649
Total liabilities	62,034	64,920
Stockholders' equity:
Common stock, $0.001 par value: Authorized-120,000,000 shares as of June 30, 2021 and December 31, 2020; issued and outstanding - 36,454,369 and 31,796,544 shares as of June 30, 2021 and December 31, 2020, respectively	37	32
Additional paid-in capital	734,170	451,433
Accumulated other comprehensive income	1,578	2,434
Accumulated deficit	(269,775)	(247,774)
Total stockholders' equity	466,010	206,125
Total liabilities and stockholders' equity	$ 528,044	$ 271,045

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Condensed Consolidated Balance Sheets
Accounts receivable, reserve for doubtful accounts	$ 377	$ 370
Accounts receivable, related parties	134	172
Accounts payable, related parties	10	14
Other accrued expenses, related parties	8	1,377
Deferred revenue, current, related parties	$ 45	$ 90
Common stock, par value	$ 1.000	$ 1.000
Common stock, authorized shares	120,000,000	120,000,000
Common stock, shares issued	36,454,369	31,796,544
Common stock, shares outstanding	36,454,369	31,796,544

XML

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Total revenue	$ 25,371	$ 13,130	$ 52,580	$ 28,857
Costs of goods sold:
Total costs of goods sold and services	11,497	7,917	22,357	16,831
Gross profit	13,874	5,213	30,223	12,026
Operating expenses:
Research and development (including related party activity of $43 and $23 for the three months ended June 30, 2021 and 2020, respectively, and $51 and $59 for the six months ended June 30, 2021 and 2020, respectively)	6,754	4,312	13,437	8,580
Selling, general and administrative (including related party activity of $9 and $15 for the three months ended June 30, 2021 and 2020, respectively, and $23 and $23 for the six months ended June 30, 2021 and 2020, respectively)	20,788	13,102	40,243	27,375
Total operating expenses	27,542	17,414	53,680	35,955
Loss from operations	(13,668)	(12,201)	(23,457)	(23,929)
Interest (expense) income, net	(165)	(108)	(328)	53
Other income (expense), net	1,977	(11)	1,783	(178)
Loss before income taxes	(11,856)	(12,320)	(22,002)	(24,054)
Income tax (provision) benefit	(41)	18	1	142
Net loss	$ (11,897)	$ (12,302)	$ (22,001)	$ (23,912)
Net loss per share, basic and diluted	$ (0.33)	$ (0.43)	$ (0.62)	$ (0.85)
Weighted-average common shares outstanding, basic and diluted	36,347,365	28,312,925	35,396,431	28,246,028
Product revenue
Total revenue	$ 18,676	$ 6,790	$ 36,924	$ 16,623
Costs of goods sold:
Total costs of goods sold and services	8,114	5,416	15,594	11,602
Service and other revenue
Total revenue	5,648	6,317	12,057	12,079
Costs of goods sold:
Total costs of goods sold and services	3,383	2,501	6,763	5,229
Collaboration and license revenue
Total revenue	105	$ 23	366	$ 155
Grant revenue
Total revenue	$ 942		$ 3,233

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Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Related party activity research and development expenses	$ 23	$ 43	$ 59	$ 51
Related party activity in selling, general and administrative expenses	15	9	23	23
Product revenue
Related party revenue	186	151	220	243
Cost of revenue, related party activity	30	486	57	1,056
Service and other revenue
Related party revenue	5	21	45	29
Cost of revenue, related party activity	$ 0	$ 34	$ 0	$ 51

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Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Condensed Consolidated Statements of Comprehensive Loss
Net loss	$ (11,897)	$ (12,302)	$ (22,001)	$ (23,912)
Other comprehensive loss:
Cumulative translation adjustment	395	1,174	(856)	127
Total other comprehensive loss	395	1,174	(856)	127
Comprehensive loss	$ (11,502)	$ (11,128)	$ (22,857)	$ (23,785)

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Operating activities
Net loss	$ (22,001)	$ (23,912)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense	2,344	2,079
Inventory step-up amortization	275	194
Credit loss expense on accounts receivable	20
Reduction in the carrying amounts of right-of-use assets	246	108
Stock-based compensation expense	7,036	4,610
Non-cash interest expense	43	43
Loss on disposal of fixed assets		69
Changes in operating assets and liabilities:
Accounts receivable	1,740	1,445
Prepaid expenses and other assets	(2,952)	116
Inventory	(6,793)	(3,504)
Other non-current assets	(20)	27
Accounts payable	40	(959)
Accrued compensation and benefits, other accrued expenses and other current liabilities	(3,925)	(1,008)
Contract acquisition costs	(72)	(99)
Operating lease liabilities	(590)	387
Deferred tax liabilities	(120)	(437)
Deferred revenue	891	241
Net cash used in operating activities	(23,838)	(20,600)
Investing activities
Purchases of property and equipment	(7,339)	(1,361)
Proceeds from RADx grant on assets purchased	5,210
Net cash used in investing activities	(2,129)	(1,361)
Financing activities
Proceeds from sale of common stock, net of issuance costs	5,469	1,111
Sale of common stock in at-the-market offering, net	269,718
Proceeds from ESPP purchase	519	440
Payments on notes payable		(75)
Net cash provided by financing activities	275,706	1,476
Net increase (decrease) in cash and cash equivalents	249,739	(20,485)
Effect of foreign currency exchange rate on cash	(143)	110
Cash, restricted cash, and cash equivalents at beginning of period	182,584	110,181
Cash, restricted cash, and cash equivalents at end of period	432,180	89,806
Supplemental cash flow information
Cash paid for interest	309	155
Purchases of property and equipment included in accounts payable	889	35
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	430,780	88,806
Restricted cash	1,400	1,000
Total cash, cash equivalents, and restricted cash	$ 432,180	$ 89,806

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Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common stock	Additional paid-in capital	Accumulated other comprehensive income (loss) [Member]	Accumulated deficit	Total
Increase (Decrease) in Stockholders' Equity
Cumulative-effect adjustment for the adoption of ASC 606			$ (153)
Beginning Balance at Dec. 31, 2019	$ 28	$ 345,027	(153)	$ (216,244)	$ 128,658
Beginning balance (in shares) at Dec. 31, 2019	28,112,201
Increase (Decrease) in Stockholders' Equity
Exercise of common stock options and vesting of restricted stock		1,111			1,111
Exercise of common stock options and vesting of restricted stock (in shares)	246,386
ESPP stock purchase		440			440
ESPP stock purchase (in shares)	22,693
Stock-based compensation expense		4,610			4,610
Cumulative translation adjustment			127		127
Net loss				(23,912)	(23,912)
Ending Balance at Jun. 30, 2020	$ 28	351,188	(26)	(240,156)	111,034
Ending Balance (in shares) at Jun. 30, 2020	28,381,280
Beginning Balance at Mar. 31, 2020	$ 28	348,072	(1,200)	(227,854)	119,046
Beginning balance (in shares) at Mar. 31, 2020	28,243,442
Increase (Decrease) in Stockholders' Equity
Exercise of common stock options and vesting of restricted stock		615			615
Exercise of common stock options and vesting of restricted stock (in shares)	137,838
Stock-based compensation expense		2,501			2,501
Cumulative translation adjustment			1,174		1,174
Net loss				(12,302)	(12,302)
Ending Balance at Jun. 30, 2020	$ 28	351,188	(26)	(240,156)	111,034
Ending Balance (in shares) at Jun. 30, 2020	28,381,280
Increase (Decrease) in Stockholders' Equity
Cumulative-effect adjustment for the adoption of ASC 606			(26)
Cumulative-effect adjustment for the adoption of ASC 606			2,434
Beginning Balance at Dec. 31, 2020	$ 32	451,433	2,434	(247,774)	206,125
Beginning balance (in shares) at Dec. 31, 2020	31,796,544
Increase (Decrease) in Stockholders' Equity
Exercise of common stock options and vesting of restricted stock	$ 1	5,468			5,469
Exercise of common stock options and vesting of restricted stock (in shares)	533,458
Sale of common stock in underwritten public offering, net	$ 4	269,714			269,718
Sale of common stock in underwritten public offering, net (in shares)	4,107,142
ESPP stock purchase		519			519
ESPP stock purchase (in shares)	17,225
Stock-based compensation expense		7,036			7,036
Cumulative translation adjustment			(856)		(856)
Net loss				(22,001)	(22,001)
Ending Balance at Jun. 30, 2021	$ 37	734,170	1,578	(269,775)	466,010
Ending Balance (in shares) at Jun. 30, 2021	36,454,369
Beginning Balance at Mar. 31, 2021	$ 36	728,128	1,183	(257,878)	471,469
Beginning balance (in shares) at Mar. 31, 2021	36,294,928
Increase (Decrease) in Stockholders' Equity
Exercise of common stock options and vesting of restricted stock	$ 1	2,392			2,393
Exercise of common stock options and vesting of restricted stock (in shares)	159,441
Stock-based compensation expense		3,650			3,650
Cumulative translation adjustment			395		395
Net loss				(11,897)	(11,897)
Ending Balance at Jun. 30, 2021	$ 37	$ 734,170	1,578	$ (269,775)	$ 466,010
Ending Balance (in shares) at Jun. 30, 2021	36,454,369
Increase (Decrease) in Stockholders' Equity
Cumulative-effect adjustment for the adoption of ASC 606			$ 1,578

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Organization and operations

6 Months Ended

Jun. 30, 2021

Organization and operations

Organization and operations

1. Organization and operations

Quanterix Corporation (Nasdaq: QTRX) (the Company) is a life sciences company that has developed next generation, ultra-sensitive digital immunoassay platforms that advance precision health for life sciences research and diagnostics. The Company's platforms are based on its proprietary digital "Simoa" detection technology. The Company's Simoa bead-based and planar array platforms enable customers to reliably detect protein biomarkers in extremely low concentrations in blood, serum and other fluids that, in many cases, are undetectable using conventional, analog immunoassay technologies, and also allow researchers to define and validate the function of novel protein biomarkers that are only present in very low concentrations and have been discovered using technologies such as mass spectrometry. These capabilities provide the Company's customers with insight into the role of protein biomarkers in human health that has not been possible with other existing technologies and enable researchers to unlock unique insights into the continuum between health and disease. The Company is currently focusing on protein detection, which it believes is an area of significant unmet need and where it has significant competitive advantages. However, in addition to enabling new applications and insights in protein analysis, the Company’s Simoa platforms have also demonstrated applicability across other testing applications, including detection of nucleic acids and small molecules.

The Company launched its first immunoassay platform, the Simoa HD-1, in 2014. The HD-1 is a fully automated immunoassay bead-based platform with multiplexing and custom assay capability, and related assay test kits and consumable materials. The Company launched a second bead-based immunoassay platform (SR-X) in the fourth quarter of 2017 with a more compact footprint than the Simoa HD-1 and less automation designed for lower volume requirements while still allowing multiplexing and custom assay capability. The Company initiated an early-access program for its third instrument (SP-X) on the new Simoa planar array platform in January 2019, with the full commercial launch commencing in April 2019. In July 2019, the Company launched the Simoa HD-X, an upgraded version of the Simoa HD-1 which replaces the HD-1. The HD-X has been designed to deliver significant productivity and operational efficiency improvements, as well as greater user flexibility. The Company began shipping and installing HD-X instruments at customer locations in the third quarter of 2019. The Company also performs research services on behalf of customers to apply the Simoa technology to specific customer needs. The Company's customers are primarily in the research use only market, which includes academic and governmental research institutions, the research and development laboratories of pharmaceutical manufacturers, contract research organizations, and specialty research laboratories.

The Company acquired Aushon Biosystems, Inc. (Aushon) in January 2018. With the acquisition of Aushon, the Company acquired a CLIA certified laboratory, as well as Aushon's proprietary sensitive planar array detection technology. Leveraging its proprietary sophisticated Simoa image analysis and data analysis algorithms, the Company further refined this planar array technology to develop the SP-X instrument to provide the same Simoa sensitivity found in its bead-based platform.

The Company completed the acquisition of UmanDiagnostics AB (Uman), a Swedish company located in Umea, Sweden, in August 2019. Uman supplies neurofilament light (Nf-L) antibodies and ELISA kits, which are widely recognized by researchers and biopharmaceutical and diagnostics companies world-wide as the premier solution for the detection of Nf-L to advance the development of therapeutics and diagnostics for neurodegenerative conditions. With the acquisition of Uman, the Company has secured a long-term source of supply for a critical technology.

Underwritten public offerings

On August 6, 2020, the Company entered into an underwriting agreement with SVB Leerink LLC (Leerink) and Cowen and Company, LLC (Cowen), as representatives of the several underwriters, relating to an underwritten public offering of approximately 3.0 million shares of the Company’s common stock, par value $0.001 per share. The underwritten public offering resulted in gross proceeds of $97.6 million. The Company incurred $6.2 million in issuance costs associated with the underwritten public offering, resulting in net proceeds to the Company of $91.4 million.

On February 3, 2021, the Company entered into an underwriting agreement with Goldman Sachs & Co. LLC, Leerink, and Cowen, as representatives of the several underwriters, relating to an underwritten public offering of approximately 4.1 million shares of the Company’s common stock, par value $0.001 per share. The underwritten public offering resulted in gross proceeds of $287.5 million. The Company incurred $17.8 million in issuance costs associated with the underwritten public offering, resulting in net proceeds to the Company of $269.7 million.

Basis of presentation

The interim condensed consolidated financial statements are unaudited. The unaudited condensed consolidated financial statements reflect, in the opinion of the Company’s management, all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of financial position, results of operations, comprehensive loss and cash flows for each period presented in accordance with United States generally accepted accounting principles (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on March 5, 2021 (the 2020 Annual Report on Form 10-K). The consolidated financial information as of December 31, 2020 has been derived from the audited 2020 consolidated financial statements included in the 2020 Annual Report on Form 10-K.

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Significant accounting policies

6 Months Ended

Jun. 30, 2021

Significant accounting policies

Significant accounting policies

2. Significant accounting policies

Principles of consolidation

The condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of Quanterix Corporation and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation.

Use of estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. In making those estimates and assumptions, the Company bases its estimates on historical experience and on various other assumptions believed to be reasonable. The Company’s significant estimates included in the preparation of the consolidated financial statements are related to revenue recognition, fair value of assets acquired and liabilities assumed in acquisitions, valuation allowances recorded against deferred tax assets, and valuation of inventory. Actual results could differ from those estimates.

Foreign currency

The Company translates assets and liabilities of its foreign subsidiaries at rates in effect at the end of the reporting period. Revenues and expenses are translated at average rates in effect during the reporting period. Translation adjustments are included in accumulated other comprehensive income.

Income taxes

The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company's consolidated financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on differences between the consolidated financial statement carrying amounts and the tax bases of the assets and liabilities using the enacted tax rates in effect in the years in which the differences are expected to reverse. A valuation allowance against deferred tax assets is recorded if, based on the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

The Company accounts for uncertain tax positions in accordance with the provisions of Accounting Standards Codification (ASC) 740, Income Taxes (ASC 740). When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. As of June 30, 2021, the Company did not have any significant uncertain tax positions.

Business combinations

Under the acquisition method of accounting, the Company generally recognizes the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition. The fair values assigned, defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants, are based on estimates and assumptions determined by management. The excess consideration over 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 typically uses the discounted cash flow method to value acquired intangible assets. This method requires significant management judgment to forecast future operating results and establish residual growth rates and discount factors. The estimates used to value and amortize intangible assets are consistent with the plans and estimates that are used to manage the business and are based on available historical information and industry estimates and averages. If the subsequent actual results and updated projections of the underlying business activity change compared with the assumptions and projections used to develop these values, the Company could experience impairment charges. In addition, the Company has estimated the economic lives of certain acquired assets and these lives are used to calculate depreciation and amortization expense. If estimates of the economic lives change, depreciation or amortization expenses could be accelerated or slowed.

Restricted cash

Restricted cash primarily represents collateral for a letter of credit issued as security for the lease for the Company’s headquarters in Billerica, Massachusetts, and to secure the Company’s corporate credit card program. The restricted cash is long term in nature as the Company will not have access to the funds until more than one year from June 30, 2021.

Recent accounting pronouncements

The Company is considered to be an “emerging growth company” (EGC) as defined in the Jumpstart Our Business Startups Act of 2012, as amended (JOBS Act). The JOBS Act provides that an EGC can take advantage of an extended transition period for complying with new or revised accounting standards. Thus, an EGC can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. Because the market value of the Company’s common stock that was held by non-affiliates exceeded $700 million as of June 30, 2021, the Company will cease to be an EGC as of December 31, 2021. As a result, starting in 2022, the Company will be required to adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies.

Recently Adopted

In June 2016, the Financial Accounting Standards Board (FASB) established Topic 326, Financial Instruments — Credit Losses: Measurement of Credit Losses on Financial Instruments (ASC 326) by issuing Accounting Standards Update (ASU) No. 2016-13 (ASU 2016-13), which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables and available-for-sale debt securities. The Company early adopted ASU 2016-13 on January 1, 2021 using the modified retrospective approach. The Company’s consolidated financial statements for prior-year periods have

not been revised and are reflective of the credit loss requirements which were in effect for that period. The adoption of ASU 2016-13 did not have a material impact on the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15). This ASU addresses the accounting for implementation, setup and other upfront costs paid by a customer in a cloud computing or hosting arrangement. The guidance aligns the accounting treatment of these costs incurred in a hosting arrangement treated as a service contract with the requirements for capitalization and amortization costs to develop or obtain internal-use software. The Company adopted ASU 2018-15 on January 1, 2021 using the prospective method. The adoption of ASU 2018-15 did not have a material impact on the Company’s consolidated financial statements.

In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (ASU 2019-12), which is intended to simplify various areas related to ASC 740, Income Taxes (ASC 740). ASU 2019-12 removes certain exceptions for performing intra period tax allocations and calculating income taxes in interim periods. The guidance also simplifies the accounting for transactions that result in a step-up in the tax basis of goodwill and the effect of enacted changes in tax laws or rates in interim periods. The Company early adopted ASU 2019-12 on January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on the Company’s consolidated financial statements.

There have been no other material changes to the significant accounting policies and recent accounting pronouncements previously disclosed in the 2020 Annual Report on Form 10-K.

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Revenue recognition

6 Months Ended

Jun. 30, 2021

Revenue recognition

Revenue recognition

3. Revenue recognition

The Company recognizes revenue when a customer obtains control of a promised good or service. The amount of revenue recognized reflects consideration that the Company expects to be entitled to receive in exchange for these goods and services, incentives and taxes collected from customers that are subsequently remitted to governmental authorities.

Customers

The Company’s customers primarily consist of entities engaged in the life sciences research market that pursue the discovery and development of new drugs for a variety of neurologic, cardiovascular, oncologic and other protein biomarkers associated with diseases. The Company’s customer base includes several of the largest biopharmaceutical companies, academic research organizations and distributors who serve certain geographic markets.

Product revenue

The Company’s products are composed of analyzer instruments, assay kits and other consumables such as reagents. Products are sold directly to biopharmaceutical and academic research organizations or are sold through distributors in EMEA and Asia Pacific regions. The sales of instruments are generally accompanied by an initial year of implied service-type warranties and may be bundled with assays and other consumables and may also include other items such as training and installation of the instrument and/or an extended service warranty. Revenues from the sale of products are recognized at a point in time when the Company transfers control of the product to the customer, which is upon installation for instruments sold to direct customers, and based upon shipping terms for assay kits and other consumables. Revenue for instruments sold to distributors is generally recognized based upon shipping terms (either upon shipment or delivery).

Service and other revenue

Service revenues are composed of contract research services, initial implied one-year service-type warranties, extended services contracts and other services such as training. Contract research services are provided through the Company’s Accelerator Laboratory and generally consist of fixed fee contracts. Revenues from contract research

services are recognized at a point in time when the Company completes and delivers its research report on each individually completed study, or over time if the contractual provisions allow for the collection of transaction consideration for costs incurred plus a reasonable margin through the period of performance of the services. Revenues from service-type warranties are recognized ratably over the contract service period. Revenues from other services are immaterial.

Collaboration and license revenue

The Company may enter into agreements to license the intellectual property and know-how associated with its instruments and certain antibodies in exchange for license fees and future royalties (as described below). The license agreements provide the licensee with a right to use the intellectual property with the license fee revenues recognized at a point in time as the underlying license is considered functional intellectual property.

Payment terms

The Company’s payment terms vary by the type and location of the customer and the products or services offered. Payment from customers is generally required in a term ranging from 30 to 45 days from date of shipment or satisfaction of the performance obligation. The Company does not provide financing arrangements to its customers.

Disaggregated revenue

When disaggregating revenue, the Company considered all of the economic factors that may affect its revenues. The following tables disaggregate the Company's revenue from contracts with customers by revenue type (in thousands):

	Three Months Ended								Six Months Ended
	June 30, 2021								June 30, 2021
	NA		EMEA		Asia Pacific		Total		NA		EMEA		Asia Pacific		Total
Product revenues
Instruments	$	2,122	$	1,630	$	2,086	$	5,838	$	5,878	$	4,463	$	2,458	$	12,799
Consumable and other products		8,812		3,251		775		12,838		15,723		6,744		1,658		24,125
Totals	$	10,934	$	4,881	$	2,861	$	18,676	$	21,601	$	11,207	$	4,116	$	36,924
Service and other revenues
Service-type warranties	$	1,098	$	458	$	51	$	1,607	$	2,069	$	896	$	113	$	3,078
Research services		2,728		763		27		3,518		6,286		1,491		39		7,816
Other services		351		172		—		523		807		356		—		1,163
Totals	$	4,177	$	1,393	$	78	$	5,648	$	9,162	$	2,743	$	152	$	12,057
Collaboration and license revenue
Collaboration and license revenue	$	41	$	64	$	—	$	105	$	228	$	138	$	—	$	366
Totals	$	41	$	64	$	—	$	105	$	228	$	138	$	—	$	366

	Three Months Ended								Six Months Ended
	June 30, 2020								June 30, 2020
	NA		EMEA		Asia Pacific		Total		NA		EMEA		Asia Pacific		Total
Product revenues
Instruments	$	1,220	$	1,009	$	535	$	2,764	$	2,973	$	1,735	$	1,744	$	6,452
Consumable and other products		1,734		1,897		395		4,026		4,658		4,601		912		10,171
Totals	$	2,954	$	2,906	$	930	$	6,790	$	7,631	$	6,336	$	2,656	$	16,623
Service and other revenues
Service-type warranties	$	731	$	385	$	59	$	1,175	$	1,479	$	764	$	111	$	2,354
Research services		4,394		513		75		4,982		8,061		595		613		9,269
Other services		75		67		18		160		306		127		23		456
Totals	$	5,200	$	965	$	152	$	6,317	$	9,846	$	1,486	$	747	$	12,079
Collaboration and license revenue
Collaboration and license revenue	$	22	$	1	$	—	$	23	$	144	$	11	$	—	$	155
Totals	$	22	$	1	$	—	$	23	$	144	$	11	$	—	$	155

The Company’s contracts with customers may include promises to transfer multiple products and services to a customer. The Company combines any performance obligations that are immaterial with one or more other performance obligations that are material to the contract. For arrangements with multiple performance obligations, the Company allocates the contract transaction price, including discounts, to each performance obligation based on its relative standalone selling price. Judgment is required to determine the standalone selling price for each distinct performance obligation. The Company determines standalone selling prices based on prices charged to customers in observable transactions, and uses a range of amounts to estimate standalone selling prices for each performance obligation. The Company may have more than one range of standalone selling price for certain products and services based on the pricing for different customer classes.

Variable consideration in the Company’s contracts primarily relates to (i) sales- and usage-based royalties related to the license of intellectual property in collaboration and license contracts and (ii) certain non-fixed fee research services contracts. ASC 606 provides for an exception to estimating the variable consideration for sales- and usage-based royalties related to the license of intellectual property, such that the sales- and usage-based royalty will be recognized in the period the underlying transaction occurs. The Company recognizes revenue from sales- and usage-based royalty revenue at the later of when the sale or usage occurs and the satisfaction or partial satisfaction of the performance obligation to which the royalty has been allocated.

The aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied or are partially satisfied as of June 30, 2021 and 2020 is $6.9 million and $5.4 million, respectively. As of June 30, 2021, of the performance obligations not yet satisfied or partially satisfied, $6.1 million is expected to be recognized as revenue in the next 12 months, with the remainder to be recognized within the 24 months thereafter. The $6.1 million at June 30, 2021 principally consists of amounts billed for undelivered services related to initial and extended service-type warranties and research services, as well as $0.5 million related to undelivered licenses of intellectual property for a diagnostics company (see Note 13).

Changes in deferred revenue from contracts with customers were as follows (in thousands):

	Six Months Ended June 30, 2021
Balance at December 31, 2020	$	5,998
Deferral of revenue		3,969
Recognition of deferred revenue		(3,078)
Balance at June 30, 2021	$	6,889

Costs to obtain a contract

The Company’s sales commissions are generally based on revenues of the Company. The Company has determined that certain commissions paid under its sales incentive programs meet the requirements to be capitalized as they are incremental and would not have occurred absent a customer contract. The change in the balance of costs to obtain a contract are as follows (in thousands):

	Six Months Ended June 30, 2021
Balance at December 31, 2020	$	248
Deferral of costs to obtain a contract		311
Recognition of costs to obtain a contract		(229)
Balance at June 30, 2021	$	330

The Company has classified the balance of capitalized costs to obtain a contract as a component of prepaid expenses and other current assets and classifies the expense as a component of cost of goods sold and selling, general, and administrative expense over the estimated life of the contract. The Company considers potential impairment in these amounts each period.

ASC 606 provides entities with certain practical expedients and accounting policy elections to minimize the cost and burden of adoption.

The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with original expected length of one year or less and (ii) contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed.

The Company will exclude from its transaction price any amounts collected from customers related to sales and other similar taxes.

When determining the transaction price of a contract, an adjustment is made if payment from a customer occurs either significantly before or significantly after performance, resulting in a significant financing component. The Company does not assess whether a significant financing component exists if the period between when the Company performs its obligations under the contract and when the customer pays is one year or less. None of the Company’s contracts contained a significant financing component as of June 30, 2021 and 2020, respectively.

The Company has elected to account for the shipping and handling as an activity to fulfill the promise to transfer the product, and therefore will not evaluate whether shipping and handling activities are promised services to its customers.

Grant revenue

The Company recognizes grant revenue as it performs services under the arrangement when the funding is committed. Revenues and related research and development expenses are presented gross in the consolidated statements of operations as the Company has determined it is the primary obligor under the arrangement relative to the research and development services.

Accounting for grants does not fall under ASC 606, as the grantor will not benefit directly from the Company’s expansion or product development. As there is no authoritative guidance under U.S. GAAP on accounting for government assistance to for-profit business entities, the Company has accounted for grants by analogy to International Accounting Standards (IAS) 20, Accounting for Government Grants and Disclosure of Government Assistance (IAS 20).

Grants to the Company contain both monetary amounts granted related to assets and monetary amounts granted related to income, which are grants other than those related to assets. The grants related to assets are for the expansion and increase of manufacturing capacity. The grants related to income are for additional research and development, as well as other non-asset related scale up costs.

Under IAS 20, grants related to assets shall be presented in the consolidated balance sheets either by recognizing the grant as deferred income (which is recognized in the consolidated statements of operations on a systematic basis over the useful life of the asset), or by deducting the grant in calculating the carrying amount of the asset (which is recognized in the consolidated statements of operations over the life of the depreciable asset as a reduced depreciation expense). Both methods are acceptable under IAS 20. The Company has elected to record grants related to assets as a deduction in calculating the carrying value of the asset.

Under IAS 20, grants related to income are presented as part of the consolidated statements of operations, either separately or under a general heading. Both methods are acceptable under IAS 20. The Company has elected to record grants related to income separately on the consolidated statements of operations as grant revenue. The related expenses are recorded within operating expenses.

On June 22, 2020, the Company entered into a workplan 1 award (WP1) with the National Institute of Health (NIH), under the Rapid Acceleration of Diagnostics (RADx) program to assess the feasibility of a novel SARS-CoV-2 antigen detection test using the Company’s Simoa technology. WP1 was complete as of December 31, 2020.

On September 29, 2020, the Company entered into a workplan 2 award (WP2) with the NIH under its RADx program. WP2, which has a total award value of $18.2 million, accelerates the continued development, scale-up, and deployment of the novel SARS-CoV-2 antigen detection test using the Company’s Simoa technology. The contract provides funding to expand assay kit manufacturing capacity and commercial deployment readiness. Release of the $18.2 million of funding under WP2 is based on the achievement of certain milestones, and there is no assurance that the Company can meet all the milestones on a timely basis, if at all. If the Company does not meet all of the milestones, it will not be able access the full $18.2 million in funding under the contract. During the six months ended June 30, 2021 the Company recognized $3.2 million in grant revenue and incurred $2.9 million in research and development expense related to WP2.

The following table summarizes the activity under WP2 (in thousands):

	June 30, 2021		December 31, 2020
Total grant revenue from research and development activities	$	7,595	$	4,362
Total proceeds used for assets		6,865		826
Total deferred proceeds for assets		996		2,478
Total deferred grant revenue		348		304
Total recognized	$	15,804	$	7,970
Total recognized	$	15,804	$	7,970
Total amount accrued		(2,088)		(2,968)
Total cash received	$	13,716	$	5,002
Total proceeds received	$	13,716	$	5,002
Total proceeds reasonably assured		4,484		13,198
Total WP2 grant amount	$	18,200	$	18,200

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Net loss per share

6 Months Ended

Jun. 30, 2021

Net loss per share

Net loss per share

4. Net loss per share

Basic net loss per common share is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and potentially dilutive securities outstanding for the period determined using the treasury-stock and if-converted methods. For purposes of the diluted net loss per share calculation, unvested restricted common stock, restricted stock units, stock options, and

warrants are considered to be potentially dilutive securities, but are excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive and therefore basic and diluted net loss per share were the same for all periods presented.

The following table sets forth the outstanding potentially dilutive securities that have been excluded in the calculation of diluted net loss per share because to do so would be anti-dilutive (in common stock equivalent shares):

	June 30,
	2021	2020
Unvested restricted common stock and restricted stock units	572,132	479,996
Outstanding stock options	2,277,005	2,744,441
Outstanding common stock warrants	—	10,000
Total	2,849,137	3,234,437

As of June 30, 2021 and 2020, the Company had an obligation to issue warrants to purchase an additional 93,341 shares of common stock to a vendor if a contract is terminated prior to a minimum purchase commitment being met. No amounts are presented in the table above for this obligation to issue a warrant as the issuance of the warrant is not considered probable.

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Fair value of financial instruments

6 Months Ended

Jun. 30, 2021

Fair value of financial instruments

Fair value of financial instruments

5. Fair value of financial instruments

ASC Topic 820, Fair Value Measurement (ASC 820), establishes a fair value hierarchy for instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability, and are developed based on the best information available in the circumstances.

ASC 820 identifies fair value as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a three-tier fair value hierarchy that distinguishes between the following:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 inputs are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; and

Level 3 inputs are unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability.

Fair value measurements as of June 30, 2021 are as follows (in thousands):

			Quoted prices				Significant
			in active		Significant other		unobservable
			markets		observable		inputs
Description	Total		(Level 1)		inputs (Level 2)		(Level 3)
Financial assets
Cash equivalents	$	162,072	$	162,072	$	—	$	—
	$	162,072	$	162,072	$	—	$	—

Fair value measurements as of December 31, 2020 are as follows (in thousands):

			Quoted prices				Significant
			in active		Significant other		unobservable
			markets		observable		inputs
Description	Total		(Level 1)		inputs (Level 2)		(Level 3)
Financial assets
Cash equivalents	$	162,048	$	162,048	$	—	$	—
	$	162,048	$	162,048	$	—	$	—

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Inventory

6 Months Ended

Jun. 30, 2021

Inventory

Inventory

6. Inventory

Inventory consists of the following (in thousands):

	June 30,		December 31,
	2021		2020
Raw materials	$	6,573	$	5,265
Work in process		4,181		3,306
Finished goods		10,471		6,285
Total	$	21,225	$	14,856

Inventory comprises commercial instruments, assays, and the materials required to manufacture limited instruments and assays.

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Allowance for Credit Losses

6 Months Ended

Jun. 30, 2021

Allowance for Credit Loss

Allowance for Credit Loss

7. Allowance for Credit Losses

The Company is exposed to credit losses primarily through sales of products and services. The Company’s expected loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions, and a review of the current status of customers’ trade accounts receivable. Due to the short-term nature of such receivables, the estimated accounts receivable that may not be collected is based on aging of the accounts receivable balances.

Customers are assessed for credit worthiness upfront through a credit review, which includes assessment based on the Company’s analysis of their financial statements when a credit rating is not available. The Company evaluates contract terms and conditions, country, and political risk, and may require prepayment to mitigate risk of loss. Specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. The Company monitors changes to the receivables balance on a timely basis, and balances are written off as they are determined to be uncollectable after all collection efforts have been exhausted.

As of June 30, 2021, the Company’s accounts receivable balance was $15.4 million, net of $0.4 million of allowance for credit losses. The following table provides a roll-forward of the allowance for credit losses for the six months ended June 30, 2021 that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected (in thousands):

Balance at January 1, 2021	$	370
Credit loss expense		20
Write-offs charged against allowances		(86)
Recoveries collected		73
Balance at June 30, 2021	$	377

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Other accrued expenses and other non-current liabilities

6 Months Ended

Jun. 30, 2021

Other accrued expenses and other non-current liabilities

Other accrued expenses and other non-current liabilities

8. Other accrued expenses

Other accrued expenses consist of the following (in thousands):

	June 30,		December 31,
	2021		2020
Accrued inventory purchases	$	1,139	$	527
Accrued property and equipment purchases		926		670
Accrued royalties		829		1,845
Accrued professional services		781		797
Accrued development costs		571		323
Accrued other		837		683
Total accrued expenses	$	5,083	$	4,845

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Warrants, stock-based compensation, stock options, restricted stock and restricted stock units

6 Months Ended

Jun. 30, 2021

Warrants, stock-based compensation, stock options, restricted stock and restricted stock units

Warrants, stock-based compensation, stock options, restricted stock and restricted stock units

9. Warrants, stock-based compensation, stock options, restricted stock and restricted stock units

Warrants

On January 20, 2021, 10,000 warrants were exercised by a holder on a net, non-cash basis. Per the terms of the warrant agreement, the Company issued 7,347 shares of common stock with a value equal to the holder’s gain. The Company had no warrants outstanding as of June 30, 2021.

Stock-based compensation

Stock-based compensation expense for all stock awards consists of the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Cost of product revenue	$	96	$	49	$	186	$	85
Cost of service and other revenue		122		80		232		148
Research and development		409		290		808		531
Selling, general, and administrative		3,023		2,082		5,810		3,846
Total	$	3,650	$	2,501	$	7,036	$	4,610

In June 2007, the Company adopted the 2007 Stock Option and Grant Plan (the 2007 Plan), under which it could grant incentive stock options, non-qualified options, restricted stock, and stock grants. In connection with the completion of the initial public offering, the Company terminated the 2007 Plan. As of June 30, 2021, options to purchase 728,297 shares were outstanding, and no shares were available for future grant under the 2007 Plan.

In December 2017, the Company adopted the 2017 Employee, Director and Consultant Equity Incentive Plan (the 2017 Plan), under which it may grant incentive stock options, non-qualified stock options, restricted stock, and other stock-based awards. As of December 31, 2017, the 2017 Plan allowed for the issuance of up to 1,042,314 shares of common stock plus up to 2,490,290 shares of common stock represented by awards granted under the 2007 Plan that are forfeited, expire, or are cancelled without delivery of shares or which result in the forfeiture of shares of common stock back to the Company on or after the date the 2017 Plan became effective. As of June 30, 2021, there were 1,621,476 shares available for grant under the 2017 Plan.

In addition, the 2017 Plan contains an "evergreen" provision, which allows for an annual increase in the number of shares of common stock available for issuance under the 2017 Plan on the first day of each fiscal year during the period beginning in fiscal year 2019 and ending in fiscal year 2027. The annual increase in the number of shares shall be equal to the lowest of: 4% of the number of shares of common stock outstanding as of such date; and an amount determined by the Company’s Board of Directors or Compensation Committee. On January 1, 2021, the number of shares of common stock available for issuance under the 2017 Plan was automatically increased by 1,273,501 shares.

In December 2017, the Company adopted the 2017 Employee Stock Purchase Plan (the 2017 ESPP). As of December 31, 2020, the 2017 ESPP allowed for the issuance of up to 848,269 shares of common stock. As of June 30, 2021, 1,149,407 shares were available for grant under the 2017 ESPP.

In addition, the 2017 ESPP contains an "evergreen" provision, which allows for an increase in the number of shares of common stock available for issuance under the 2017 ESPP on the first day of each fiscal year beginning with fiscal year 2018. The increase in the number of shares shall be equal to the lowest of: 1% of the number of shares of common stock outstanding on the last day of the immediately preceding fiscal year or an amount determined by the Company’s Board of Directors or Compensation Committee. The number of shares available for grant under the 2017 ESPP increased by 318,375 shares on January 1, 2021 due to this provision.

The 2017 ESPP provides for six-month option periods commencing on March 1 and ending August 31 and commencing September 1 and ending February 28 of each calendar year. The first offering under the 2017 ESPP began on September 1, 2018.

Stock options

Under the 2007 Plan and the 2017 Plan, stock options may not be granted with exercise prices of less than fair market value on the date of the grant. Options generally vest ratably over a four-year period with 25% vesting on the first anniversary and the remaining 75% vesting ratably on a monthly basis over the remaining three years. These options expire ten years after the grant date. Activity under the 2007 Plan and the 2017 Plan was as follows:

		Weighted-average		Remaining contractual	Aggregate intrinsic value
	Options	exercise price		life (in years)	(in thousands)
Outstanding at December 31, 2020	2,494,045	$	17.73	7.27	$	71,760
Granted	295,241	$	68.49
Exercised	(392,379)	$	13.93
Cancelled	(119,902)	$	33.67
Outstanding at June 30, 2021	2,277,005	$	24.13	7.12	$	82,090
Vested and expected to vest at June 30, 2021	2,277,005	$	24.13	7.12	$	82,090
Exercisable at June 30, 2021	1,410,504	$	14.42	6.18	$	62,395

Using the Black-Scholes option pricing model, the weighted-average fair value of options granted to employees and directors during the six months ended June 30, 2021 and 2020 was $32.30 and $11.76 per share, respectively. The expense related to awards granted to employees was $1.5 million and $3.0 million for the three and six months ended June 30, 2021, respectively. The expense related to awards granted to employees was $1.3 million and $2.4 million for the three and six months ended June 30, 2020, respectively. The intrinsic value of stock options exercised was $3.9 million and $20.2 million for the three and six months ended June 30, 2021, respectively. The intrinsic value of stock options exercised was $1.7 million and $2.7 million for the three and six months ended June 30, 2020, respectively. Activity related to non-employee awards was not material to the three and six months ended June 30, 2021 and 2020.

Restricted stock

Restricted common stock awards represent shares of common stock issued to employees subject to forfeiture if the vesting conditions are not satisfied. Vesting occurs periodically at specified time intervals and specified percentages. No restricted common stock awards were granted or vested during the three and six months ended June 30, 2021. As of June 30, 2021, the Company had 39,806 shares of unvested restricted common stock with a weighted average grant date fair value of $3.12 per share.

Restricted stock units

Restricted stock units (RSUs) represent the right to receive shares of common stock upon meeting specified vesting requirements. In the six months ended June 30, 2021, the Company issued 234,426 RSUs to employees of the Company under the 2017 Plan. Under the terms of the agreements, 161,039 of the RSUs issued are subject to a four-year

vesting schedule with 25% vesting on the first anniversary of the grant date and the remaining vesting 75% ratably on a monthly basis over the remaining three years; 53,119 of the RSUs are subject to a three-year vesting schedule with 33% vesting on the first anniversary of the grant date and the remaining vesting ratably on a monthly basis over the remaining two years; 4,540 of the RSUs are subject to a three-year vesting schedule with 33% vesting on the first anniversary of the grant date with the remaining vesting annually on the anniversary of the grant date over the remaining two years; 13,620 of the RSUs vest on December 31, 2021; and 2,108 vested immediately upon grant. A summary of RSU activity is as follows:

		Weighted-average
		grant date
		fair value
	Shares	per share
Unvested RSUs as of December 31, 2020	478,581	$	28.08
Granted	234,426	$	67.11
Vested	(133,732)	$	23.85
Cancelled	(46,949)	$	38.35
Unvested RSUs as of June 30, 2021	532,326	$	45.42

The expense related to awards granted to employees and directors was $2.0 million and $3.7 million for the three and six months ended June 30, 2021, respectively. The expense related to awards granted to employees and directors was $1.1 million and $2.0 million for the three and six months ended June 30, 2020, respectively.

As of June 30, 2021, there was $22.2 million of total unrecognized compensation cost related to unvested RSUs, which is expected to be recognized over the remaining weighted-average vesting period of 3.0 years.

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Leases

6 Months Ended

Jun. 30, 2021

Leases

Leases

10. Leases

The Company is a lessee under leases of offices, lab spaces, and certain office equipment. Some of the Company’s leases include options to extend the lease, and these options are included in the lease term to the extent they are reasonably certain to be exercised.

Summary of all lease costs recognized under ASC 842

The following table contains a summary of the lease costs recognized under ASC 842 and other information pertaining to the Company’s operating leases for the three and six months ended June 30, 2021 and 2020:

	Three Months Ended June 30,					Six Months Ended June 30,
Operating leases (in thousands)	2021			2020		2021			2020
Lease Costs (1)
Operating lease costs	$	663		$	667	$	1,334		$	1,327
Total lease cost	$	663		$	667	$	1,334		$	1,327
Other information
Operating cash flows used for operating leases	$	837		$	407	$	1,683		$	832
Weighted average remaining lease term (years)		9.6	years				9.6	years
Weighted average discount rate		9.73%					9.73%

(1) Short-term lease costs and variable lease costs incurred by the Company for the three and six months ended June 30, 2021 and 2020 were not material.

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Commitments and contingencies

6 Months Ended

Jun. 30, 2021

Commitments and contingencies

Commitments and contingencies

11. Commitments and contingencies

Tufts University

In June 2007, the Company entered into a license agreement (the License Agreement) for certain intellectual property with Tufts University (Tufts). Tufts is a related party to the Company due to Tufts’ equity ownership in the Company and because a member of the Company’s Board of Directors was affiliated with Tufts. The License Agreement, which was subsequently amended, is exclusive and sublicensable, and will continue in effect on a country-by-country basis as long as there is a valid claim of a licensed patent in a country. The Company is committed to pay license and maintenance fees, prior to commercialization, in addition to low single digit royalties on direct sales and services and a royalty on sublicense income. During the three months ended June 30, 2021 and 2020 and the six months ended June 30, 2021 and 2020, the Company recorded royalty expense of $0.4 million, $0.2 million, $0.8 million, and $0.4 million, respectively, in cost of product revenue on the consolidated statements of operations.

Supply agreement

The Company’s supply agreement with STRATEC Biomedical required the Company to purchase a minimum number of commercial units over a seven-year period that ended in May 2021. Based on the number of commercial instruments purchased as of June 30, 2021, the Company has satisfied its required minimum purchase amount per the supply agreement.

Legal contingencies

The Company is subject to claims in the ordinary course of business; however, the Company is not currently a party to any pending or threatened litigation, the outcome of which would be expected to have a material adverse effect on its financial condition or the results of its operations. The Company accrues for contingent liabilities to the extent that the liability is probable and estimable.

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Notes payable

6 Months Ended

Jun. 30, 2021

Notes payable

Notes payable

12. Notes payable

Loan agreement

On April 14, 2014, the Company executed a loan agreement with a lender, as subsequently amended. As of June 30, 2021, there were no additional amounts available to borrow under the debt facility. The interest rate on this term loan is variable based on the greater of 8% or 8% plus the prime rate less 5.25%. Interest is paid monthly beginning the month following the borrowing date. At loan inception and in connection with the amendments, the Company issued the lender warrants to purchase shares of stock. The loan agreement also contains prepayment penalties and an end of term charge. Fees incurred upon execution of the agreements, and the fair value of warrants on the date of grant were accounted for as a reduction in the book value of debt and accreted through interest expense, using the effective interest rate method, over the term of the debt. Under the amended agreement, the Company is required to pay the loan principal in four equal installments starting July 1, 2021, with the final payment and end of term charge to be made on October 1, 2021.

As of June 30, 2021, debt payment obligations due based on principal payments are as follows (in thousands):

2021	$	7,688
Total	$	7,688

Non-cash interest expense related to debt discount amortization and accretion of end of term fees was $0.1 million or less for each of the three and six months ended June 30, 2021 and 2020.

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Collaboration and license arrangements

6 Months Ended

Jun. 30, 2021

Collaboration and license arrangements

Collaboration and license arrangements

13. Collaboration and license arrangements

The Company has entered into certain licenses with other companies for use of the Company’s technology. These licenses have royalty components which the Company earns and recognizes as collaboration and license revenue throughout the year. The Company recognized revenue of $0.1 million and $0.4 million for the three and six months ended June 30, 2021, respectively, and less than $0.1 million and $0.2 million for the three and six months ended June 30, 2020, respectively, associated with these licenses.

As of June 30, 2021 and December 31, 2020, the Company had $0.5 million of deferred revenue related to ongoing negotiations with a diagnostics company.

Abbott Laboratories

On September 29, 2020, the Company entered into a Non-Exclusive License Agreement (the Abbott License Agreement) with Abbott Laboratories (Abbott). Pursuant to the terms of the Abbott License Agreement, the Company granted Abbott a non-exclusive, worldwide, royalty-bearing license, without the right to sublicense, under the Company’s bead-based single molecule detection patents (Licensed Patents) in the field of in vitro diagnostics. Abbott agreed to pay the Company an initial license fee of $10.0 million in connection with the execution of the Abbott License Agreement, which was recognized as license revenue during the 2020 fiscal year. Abbott has also agreed to pay the Company milestone fees subject to the achievement by Abbott of certain development, regulatory and commercialization milestones and low single-digit royalties on net sales of licensed products.

The Abbott License Agreement includes customary representations and warranties, covenants and indemnification obligations for a transaction of this nature. The Abbott License Agreement became effective upon signing and will continue until expiration of the last-to-expire Licensed Patent, or the agreement is earlier terminated. Under the terms of the Abbott License Agreement, the Company and Abbott each have the right to terminate the agreement for uncured material breach by, or insolvency of, the other party. Abbott may also terminate the Abbott License Agreement at any time without cause upon 60 days’ notice.

During the three and six months ended June 30, 2021, the Company recognized no revenue under the Abbott License Agreement.

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Employee benefit plans

6 Months Ended

Jun. 30, 2021

Employee benefit plans

Employee benefit plans

14. Employee benefit plans

The Company sponsors a 401(k) savings plan for its employees. The Company may make discretionary contributions for each 401(k) plan year. During the three and six months ended June 30, 2021, the Company made contributions of $0.2 million and $0.4 million, respectively. During the three and six months ended June 30, 2020, the Company made contributions of $0.2 million and $0.3 million, respectively.

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Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets

Goodwill and Intangible Assets

15. Goodwill and acquired intangible assets

As of June 30, 2021, the carrying amount of goodwill was $10.1 million. The following is a rollforward of the Company’s goodwill balance (in thousands):

	Goodwill
Balance as of December 31, 2020	$	10,460
Cumulative translation adjustment		(339)
Balance as of June 30, 2021	$	10,121

Acquired intangible assets as of June 30, 2021 consist of the following (in thousands):

		June 30, 2021
		Gross				Cumulative		Net		Weighted
	Estimated Useful	Carrying		Accumulated		Translation		Carrying		Average
	Life (in years)	Value		Amortization		Adjustment		Value		Life Remaining (in years)
Know-how	8.5	$	13,000	$	(3,060)	$	860	$	10,800	6.50
Developed technology	7		1,650		(1,159)		—		491	3.59
Customer relationships	8.5 - 10		1,360		(706)		7		661	6.58
Non-compete agreements	5.5		340		(136)		18		222	3.50
Trade names	3		50		(50)		—		—	—
Total		$	16,400	$	(5,111)	$	885	$	12,174

Acquired intangible assets as of December 31, 2020 consist of the following (in thousands):

		December 31, 2020
		Gross				Cumulative		Net		Weighted
	Estimated Useful	Carrying		Accumulated		Translation		Carrying		Average
	Life (in years)	Value		Amortization		Adjustment		Value		Life Remaining (in years)
Know-how	8.5	$	13,000	$	(2,296)	$	1,374	$	12,078	6.99
Developed technology	7		1,650		(1,036)		—		614	4.09
Customer relationships	8.5 - 10		1,360		(618)		12		754	7.08
Non-compete agreements	5.5		340		(102)		31		269	3.99
Trade names	3		50		(49)		—		1	0.08
Total		$	16,400	$	(4,101)	$	1,417	$	13,716

The Company recorded amortization expense of $0.5 million and $1.0 million for three and six months ended June 30, 2021, respectively, and $0.5 million and $1.0 million for the three and six months ended June 30, 2020, respectively. Amortization relating to developed technology is recorded within research and development expenses, amortization of customer relationships is recorded within selling, general, and administrative expenses, amortization of trade names is recorded within selling, general and administrative expenses, amortization of non-compete agreements is recorded within selling, general, and administrative expenses, and amortization of know-how is recorded within cost of product revenue.

Future estimated amortization expense of acquired intangible assets as of June 30, 2021 is as follows (in thousands):

For the Years Ended December 31,	Estimated Amortization Expense
Current year (2021)	$	1,002
2022		1,930
2023		1,848
2024		1,733
2025		1,617
Thereafter		4,044
	$	12,174

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Related party transactions

6 Months Ended

Jun. 30, 2021

Related party transactions

Related party transactions

16. Related party transactions

The Company entered into the License Agreement for certain intellectual property with Tufts (see Note 11). Tufts is a related party to the Company due to Tufts’ equity ownership in the Company and because a member of the Company’s Board of Directors was affiliated with Tufts. During the three and six months ended June 30, 2021 and the three and six months ended June 30, 2020, the Company recorded royalty expense of $0.4 million, $0.8 million, $0.2 million, and $0.4 million respectively, in cost of product revenue on the consolidated statements of operations.

During the year ended December 31, 2017, Harvard University became a related party because a member of the Company’s Board of Directors is affiliated with Harvard University. Revenue recorded from sales to Harvard University and its affiliates was $0.2 million for each of the three and six months ended June 30, 2021. Revenue recorded from sales to Harvard University and its affiliates was less than $0.1 million for each of the three and six months ended June 30, 2020.

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Accumulated other comprehensive income (loss)

6 Months Ended

Jun. 30, 2021

Accumulated other comprehensive income (loss)

Accumulated other comprehensive income (loss)

17. Accumulated other comprehensive income (loss)

The following shows the changes in the components of accumulated other comprehensive income (loss) for the six months ended June 30, 2021 and 2020 which consisted of only foreign currency translation adjustments for the periods shown (in thousands):

			Accumulated
	Cumulative		Other
	Translation		Comprehensive
	Adjustment		Income
Balance - December 31, 2020	$	2,434	$	2,434
Current period accumulated other comprehensive loss		(856)		(856)
Balance - June 30, 2021	$	1,578	$	1,578
			Accumulated
	Cumulative		Other
	Translation		Comprehensive
	Adjustment		Loss
Balance - December 31, 2019	$	(153)	$	(153)
Current period accumulated other comprehensive loss		127		127
Balance - June 30, 2020	$	(26)	$	(26)

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Subsequent events

6 Months Ended

Jun. 30, 2021

Subsequent events

Subsequent events

18. Subsequent events

The Company had no significant subsequent events for the period June 30, 2021 through the filing date of this Quarterly Report on Form 10-Q.

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Significant accounting policies (Policies)

6 Months Ended

Jun. 30, 2021

Significant accounting policies

Principles of consolidation

Principles of consolidation

The condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of Quanterix Corporation and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation.

Use of estimates

Use of estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. In making those estimates and assumptions, the Company bases its estimates on historical experience and on various other assumptions believed to be reasonable. The Company’s significant estimates included in the preparation of the consolidated financial statements are related to revenue recognition, fair value of assets acquired and liabilities assumed in acquisitions, valuation allowances recorded against deferred tax assets, and valuation of inventory. Actual results could differ from those estimates.

Foreign Currency

Foreign currency

The Company translates assets and liabilities of its foreign subsidiaries at rates in effect at the end of the reporting period. Revenues and expenses are translated at average rates in effect during the reporting period. Translation adjustments are included in accumulated other comprehensive income.

Income taxes

Income taxes

The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company's consolidated financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on differences between the consolidated financial statement carrying amounts and the tax bases of the assets and liabilities using the enacted tax rates in effect in the years in which the differences are expected to reverse. A valuation allowance against deferred tax assets is recorded if, based on the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

The Company accounts for uncertain tax positions in accordance with the provisions of Accounting Standards Codification (ASC) 740, Income Taxes (ASC 740). When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. As of June 30, 2021, the Company did not have any significant uncertain tax positions.

Business combinations

Business combinations

Under the acquisition method of accounting, the Company generally recognizes the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition. The fair values assigned, defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants, are based on estimates and assumptions determined by management. The excess consideration over 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 typically uses the discounted cash flow method to value acquired intangible assets. This method requires significant management judgment to forecast future operating results and establish residual growth rates and discount factors. The estimates used to value and amortize intangible assets are consistent with the plans and estimates that are used to manage the business and are based on available historical information and industry estimates and averages. If the subsequent actual results and updated projections of the underlying business activity change compared with the assumptions and projections used to develop these values, the Company could experience impairment charges. In addition, the Company has estimated the economic lives of certain acquired assets and these lives are used to calculate depreciation and amortization expense. If estimates of the economic lives change, depreciation or amortization expenses could be accelerated or slowed.

Restricted Cash

Restricted cash

Restricted cash primarily represents collateral for a letter of credit issued as security for the lease for the Company’s headquarters in Billerica, Massachusetts, and to secure the Company’s corporate credit card program. The restricted cash is long term in nature as the Company will not have access to the funds until more than one year from June 30, 2021.

Recent accounting pronouncements

Recent accounting pronouncements

The Company is considered to be an “emerging growth company” (EGC) as defined in the Jumpstart Our Business Startups Act of 2012, as amended (JOBS Act). The JOBS Act provides that an EGC can take advantage of an extended transition period for complying with new or revised accounting standards. Thus, an EGC can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. Because the market value of the Company’s common stock that was held by non-affiliates exceeded $700 million as of June 30, 2021, the Company will cease to be an EGC as of December 31, 2021. As a result, starting in 2022, the Company will be required to adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies.

Recently Adopted

In June 2016, the Financial Accounting Standards Board (FASB) established Topic 326, Financial Instruments — Credit Losses: Measurement of Credit Losses on Financial Instruments (ASC 326) by issuing Accounting Standards Update (ASU) No. 2016-13 (ASU 2016-13), which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables and available-for-sale debt securities. The Company early adopted ASU 2016-13 on January 1, 2021 using the modified retrospective approach. The Company’s consolidated financial statements for prior-year periods have

not been revised and are reflective of the credit loss requirements which were in effect for that period. The adoption of ASU 2016-13 did not have a material impact on the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15). This ASU addresses the accounting for implementation, setup and other upfront costs paid by a customer in a cloud computing or hosting arrangement. The guidance aligns the accounting treatment of these costs incurred in a hosting arrangement treated as a service contract with the requirements for capitalization and amortization costs to develop or obtain internal-use software. The Company adopted ASU 2018-15 on January 1, 2021 using the prospective method. The adoption of ASU 2018-15 did not have a material impact on the Company’s consolidated financial statements.

In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (ASU 2019-12), which is intended to simplify various areas related to ASC 740, Income Taxes (ASC 740). ASU 2019-12 removes certain exceptions for performing intra period tax allocations and calculating income taxes in interim periods. The guidance also simplifies the accounting for transactions that result in a step-up in the tax basis of goodwill and the effect of enacted changes in tax laws or rates in interim periods. The Company early adopted ASU 2019-12 on January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on the Company’s consolidated financial statements.

There have been no other material changes to the significant accounting policies and recent accounting pronouncements previously disclosed in the 2020 Annual Report on Form 10-K.

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Revenue recognition (Tables)

6 Months Ended

Jun. 30, 2021

Revenue recognition

Schedule of disaggregated revenue

	Three Months Ended								Six Months Ended
	June 30, 2021								June 30, 2021
	NA		EMEA		Asia Pacific		Total		NA		EMEA		Asia Pacific		Total
Product revenues
Instruments	$	2,122	$	1,630	$	2,086	$	5,838	$	5,878	$	4,463	$	2,458	$	12,799
Consumable and other products		8,812		3,251		775		12,838		15,723		6,744		1,658		24,125
Totals	$	10,934	$	4,881	$	2,861	$	18,676	$	21,601	$	11,207	$	4,116	$	36,924
Service and other revenues
Service-type warranties	$	1,098	$	458	$	51	$	1,607	$	2,069	$	896	$	113	$	3,078
Research services		2,728		763		27		3,518		6,286		1,491		39		7,816
Other services		351		172		—		523		807		356		—		1,163
Totals	$	4,177	$	1,393	$	78	$	5,648	$	9,162	$	2,743	$	152	$	12,057
Collaboration and license revenue
Collaboration and license revenue	$	41	$	64	$	—	$	105	$	228	$	138	$	—	$	366
Totals	$	41	$	64	$	—	$	105	$	228	$	138	$	—	$	366

	Three Months Ended								Six Months Ended
	June 30, 2020								June 30, 2020
	NA		EMEA		Asia Pacific		Total		NA		EMEA		Asia Pacific		Total
Product revenues
Instruments	$	1,220	$	1,009	$	535	$	2,764	$	2,973	$	1,735	$	1,744	$	6,452
Consumable and other products		1,734		1,897		395		4,026		4,658		4,601		912		10,171
Totals	$	2,954	$	2,906	$	930	$	6,790	$	7,631	$	6,336	$	2,656	$	16,623
Service and other revenues
Service-type warranties	$	731	$	385	$	59	$	1,175	$	1,479	$	764	$	111	$	2,354
Research services		4,394		513		75		4,982		8,061		595		613		9,269
Other services		75		67		18		160		306		127		23		456
Totals	$	5,200	$	965	$	152	$	6,317	$	9,846	$	1,486	$	747	$	12,079
Collaboration and license revenue
Collaboration and license revenue	$	22	$	1	$	—	$	23	$	144	$	11	$	—	$	155
Totals	$	22	$	1	$	—	$	23	$	144	$	11	$	—	$	155

Schedule of changes in deferred revenue from contracts with customers

Changes in deferred revenue from contracts with customers were as follows (in thousands):

	Six Months Ended June 30, 2021
Balance at December 31, 2020	$	5,998
Deferral of revenue		3,969
Recognition of deferred revenue		(3,078)
Balance at June 30, 2021	$	6,889

Schedule of costs to obtain a contract

	Six Months Ended June 30, 2021
Balance at December 31, 2020	$	248
Deferral of costs to obtain a contract		311
Recognition of costs to obtain a contract		(229)
Balance at June 30, 2021	$	330

Schedule of summary of the activity under WP2

The following table summarizes the activity under WP2 (in thousands):

	June 30, 2021		December 31, 2020
Total grant revenue from research and development activities	$	7,595	$	4,362
Total proceeds used for assets		6,865		826
Total deferred proceeds for assets		996		2,478
Total deferred grant revenue		348		304
Total recognized	$	15,804	$	7,970
Total recognized	$	15,804	$	7,970
Total amount accrued		(2,088)		(2,968)
Total cash received	$	13,716	$	5,002
Total proceeds received	$	13,716	$	5,002
Total proceeds reasonably assured		4,484		13,198
Total WP2 grant amount	$	18,200	$	18,200

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Net loss per share (Tables)

6 Months Ended

Jun. 30, 2021

Net loss per share

Schedule of outstanding potentially dilutive securities that have been excluded in the calculation of diluted net loss per share

The following table sets forth the outstanding potentially dilutive securities that have been excluded in the calculation of diluted net loss per share because to do so would be anti-dilutive (in common stock equivalent shares):

	June 30,
	2021	2020
Unvested restricted common stock and restricted stock units	572,132	479,996
Outstanding stock options	2,277,005	2,744,441
Outstanding common stock warrants	—	10,000
Total	2,849,137	3,234,437

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Fair value of financial instruments (Tables)

6 Months Ended

Jun. 30, 2021

Fair value of financial instruments

Schedule of fair value measurements

Fair value measurements as of June 30, 2021 are as follows (in thousands):

			Quoted prices				Significant
			in active		Significant other		unobservable
			markets		observable		inputs
Description	Total		(Level 1)		inputs (Level 2)		(Level 3)
Financial assets
Cash equivalents	$	162,072	$	162,072	$	—	$	—
	$	162,072	$	162,072	$	—	$	—

Fair value measurements as of December 31, 2020 are as follows (in thousands):

			Quoted prices				Significant
			in active		Significant other		unobservable
			markets		observable		inputs
Description	Total		(Level 1)		inputs (Level 2)		(Level 3)
Financial assets
Cash equivalents	$	162,048	$	162,048	$	—	$	—
	$	162,048	$	162,048	$	—	$	—

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Inventory (Tables)

6 Months Ended

Jun. 30, 2021

Inventory

Summary of inventory

Inventory consists of the following (in thousands):

	June 30,		December 31,
	2021		2020
Raw materials	$	6,573	$	5,265
Work in process		4,181		3,306
Finished goods		10,471		6,285
Total	$	21,225	$	14,856

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Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2021

Allowance for Credit Loss

Schedule of the allowance for credit losses

Balance at January 1, 2021	$	370
Credit loss expense		20
Write-offs charged against allowances		(86)
Recoveries collected		73
Balance at June 30, 2021	$	377

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Other accrued expenses and other non-current liabilities (Tables)

6 Months Ended

Jun. 30, 2021

Other accrued expenses and other non-current liabilities

Summary of other accrued expenses

	June 30,		December 31,
	2021		2020
Accrued inventory purchases	$	1,139	$	527
Accrued property and equipment purchases		926		670
Accrued royalties		829		1,845
Accrued professional services		781		797
Accrued development costs		571		323
Accrued other		837		683
Total accrued expenses	$	5,083	$	4,845

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Warrants, stock-based compensation, stock options, restricted stock and restricted stock units (Tables)

6 Months Ended

Jun. 30, 2021

Warrants, stock-based compensation, stock options, restricted stock and restricted stock units

Summary of share-based compensation expense for all stock awards

Stock-based compensation expense for all stock awards consists of the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Cost of product revenue	$	96	$	49	$	186	$	85
Cost of service and other revenue		122		80		232		148
Research and development		409		290		808		531
Selling, general, and administrative		3,023		2,082		5,810		3,846
Total	$	3,650	$	2,501	$	7,036	$	4,610

Summary of stock option activity

		Weighted-average		Remaining contractual	Aggregate intrinsic value
	Options	exercise price		life (in years)	(in thousands)
Outstanding at December 31, 2020	2,494,045	$	17.73	7.27	$	71,760
Granted	295,241	$	68.49
Exercised	(392,379)	$	13.93
Cancelled	(119,902)	$	33.67
Outstanding at June 30, 2021	2,277,005	$	24.13	7.12	$	82,090
Vested and expected to vest at June 30, 2021	2,277,005	$	24.13	7.12	$	82,090
Exercisable at June 30, 2021	1,410,504	$	14.42	6.18	$	62,395

Summary of restricted stock units activity

		Weighted-average
		grant date
		fair value
	Shares	per share
Unvested RSUs as of December 31, 2020	478,581	$	28.08
Granted	234,426	$	67.11
Vested	(133,732)	$	23.85
Cancelled	(46,949)	$	38.35
Unvested RSUs as of June 30, 2021	532,326	$	45.42

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Leases (Tables)

6 Months Ended

Jun. 30, 2021

Leases

Summary of the lease costs recognized under ASC 842

The following table contains a summary of the lease costs recognized under ASC 842 and other information pertaining to the Company’s operating leases for the three and six months ended June 30, 2021 and 2020:

	Three Months Ended June 30,					Six Months Ended June 30,
Operating leases (in thousands)	2021			2020		2021			2020
Lease Costs (1)
Operating lease costs	$	663		$	667	$	1,334		$	1,327
Total lease cost	$	663		$	667	$	1,334		$	1,327
Other information
Operating cash flows used for operating leases	$	837		$	407	$	1,683		$	832
Weighted average remaining lease term (years)		9.6	years				9.6	years
Weighted average discount rate		9.73%					9.73%

(1) Short-term lease costs and variable lease costs incurred by the Company for the three and six months ended June 30, 2021 and 2020 were not material.

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Notes payable (Tables)

6 Months Ended

Jun. 30, 2021

Notes payable

Schedule of debt payment obligations due based on principal payments

As of June 30, 2021, debt payment obligations due based on principal payments are as follows (in thousands):

2021	$	7,688
Total	$	7,688

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Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets

Rollforward of goodwill balance

	Goodwill
Balance as of December 31, 2020	$	10,460
Cumulative translation adjustment		(339)
Balance as of June 30, 2021	$	10,121

Summary of intangible assets

Acquired intangible assets as of June 30, 2021 consist of the following (in thousands):

		June 30, 2021
		Gross				Cumulative		Net		Weighted
	Estimated Useful	Carrying		Accumulated		Translation		Carrying		Average
	Life (in years)	Value		Amortization		Adjustment		Value		Life Remaining (in years)
Know-how	8.5	$	13,000	$	(3,060)	$	860	$	10,800	6.50
Developed technology	7		1,650		(1,159)		—		491	3.59
Customer relationships	8.5 - 10		1,360		(706)		7		661	6.58
Non-compete agreements	5.5		340		(136)		18		222	3.50
Trade names	3		50		(50)		—		—	—
Total		$	16,400	$	(5,111)	$	885	$	12,174

Acquired intangible assets as of December 31, 2020 consist of the following (in thousands):

		December 31, 2020
		Gross				Cumulative		Net		Weighted
	Estimated Useful	Carrying		Accumulated		Translation		Carrying		Average
	Life (in years)	Value		Amortization		Adjustment		Value		Life Remaining (in years)
Know-how	8.5	$	13,000	$	(2,296)	$	1,374	$	12,078	6.99
Developed technology	7		1,650		(1,036)		—		614	4.09
Customer relationships	8.5 - 10		1,360		(618)		12		754	7.08
Non-compete agreements	5.5		340		(102)		31		269	3.99
Trade names	3		50		(49)		—		1	0.08
Total		$	16,400	$	(4,101)	$	1,417	$	13,716

Schedule of future estimated amortization expense of acquired intangible assets

Future estimated amortization expense of acquired intangible assets as of June 30, 2021 is as follows (in thousands):

For the Years Ended December 31,	Estimated Amortization Expense
Current year (2021)	$	1,002
2022		1,930
2023		1,848
2024		1,733
2025		1,617
Thereafter		4,044
	$	12,174

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Accumulated other comprehensive income (loss) (Tables)

6 Months Ended

Jun. 30, 2021

Accumulated other comprehensive income (loss)

Schedule of Accumulated Other Comprehensive Income (Loss)

The following shows the changes in the components of accumulated other comprehensive income (loss) for the six months ended June 30, 2021 and 2020 which consisted of only foreign currency translation adjustments for the periods shown (in thousands):

			Accumulated
	Cumulative		Other
	Translation		Comprehensive
	Adjustment		Income
Balance - December 31, 2020	$	2,434	$	2,434
Current period accumulated other comprehensive loss		(856)		(856)
Balance - June 30, 2021	$	1,578	$	1,578
			Accumulated
	Cumulative		Other
	Translation		Comprehensive
	Adjustment		Loss
Balance - December 31, 2019	$	(153)	$	(153)
Current period accumulated other comprehensive loss		127		127
Balance - June 30, 2020	$	(26)	$	(26)

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Organization and operations (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions			6 Months Ended
	Feb. 03, 2021	Aug. 06, 2020	Jun. 30, 2021	Dec. 31, 2020
Initial Public Offering
Common stock, par value			$ 1.000	$ 1.000
Sale of common stock in at-the-market offering, net			$ 269,718
Underwritten public offering
Initial Public Offering
Sale of common stock in underwritten public offering, net (in shares)	4.1	3.0
Common stock, par value	$ 0.001	$ 0.001
Gross proceeds	$ 287,500	$ 97,600
Stock issuance cost	17,800	6,200
Sale of common stock in at-the-market offering, net	$ 269,700	$ 91,400

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Revenue recognition - Customers (Details)	6 Months Ended
	Jun. 30, 2021
Minimum
Revenue recognition
Period of payment	30 days
Maximum
Revenue recognition
Period of payment	45 days

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Revenue recognition - Disaggregated revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenue recognition
Total revenue	$ 25,371	$ 13,130	$ 52,580	$ 28,857
Product revenue
Revenue recognition
Total revenue	18,676	6,790	36,924	16,623
Product revenue | NA
Revenue recognition
Total revenue	10,934	2,954	21,601	7,631
Product revenue | EMEA
Revenue recognition
Total revenue	4,881	2,906	11,207	6,336
Product revenue | Asia Pacific
Revenue recognition
Total revenue	2,861	930	4,116	2,656
Instruments
Revenue recognition
Total revenue	5,838	2,764	12,799	6,452
Instruments | NA
Revenue recognition
Total revenue	2,122	1,220	5,878	2,973
Instruments | EMEA
Revenue recognition
Total revenue	1,630	1,009	4,463	1,735
Instruments | Asia Pacific
Revenue recognition
Total revenue	2,086	535	2,458	1,744
Consumable and other products
Revenue recognition
Total revenue	12,838	4,026	24,125	10,171
Consumable and other products | NA
Revenue recognition
Total revenue	8,812	1,734	15,723	4,658
Consumable and other products | EMEA
Revenue recognition
Total revenue	3,251	1,897	6,744	4,601
Consumable and other products | Asia Pacific
Revenue recognition
Total revenue	775	395	1,658	912
Service and other revenue
Revenue recognition
Total revenue	5,648	6,317	12,057	12,079
Service and other revenue | NA
Revenue recognition
Total revenue	4,177	5,200	9,162	9,846
Service and other revenue | EMEA
Revenue recognition
Total revenue	1,393	965	2,743	1,486
Service and other revenue | Asia Pacific
Revenue recognition
Total revenue	78	152	152	747
Service-type warranties
Revenue recognition
Total revenue	1,607	1,175	3,078	2,354
Service-type warranties | NA
Revenue recognition
Total revenue	1,098	731	2,069	1,479
Service-type warranties | EMEA
Revenue recognition
Total revenue	458	385	896	764
Service-type warranties | Asia Pacific
Revenue recognition
Total revenue	51	59	113	111
Research services
Revenue recognition
Total revenue	3,518	4,982	7,816	9,269
Research services | NA
Revenue recognition
Total revenue	2,728	4,394	6,286	8,061
Research services | EMEA
Revenue recognition
Total revenue	763	513	1,491	595
Research services | Asia Pacific
Revenue recognition
Total revenue	27	75	39	613
Other services
Revenue recognition
Total revenue	523	160	1,163	456
Other services | NA
Revenue recognition
Total revenue	351	75	807	306
Other services | EMEA
Revenue recognition
Total revenue	172	67	356	127
Other services | Asia Pacific
Revenue recognition
Total revenue		18		23
Collaboration and license revenue
Revenue recognition
Total revenue	105	23	366	155
Collaboration and license revenue | NA
Revenue recognition
Total revenue	41	22	228	144
Collaboration and license revenue | EMEA
Revenue recognition
Total revenue	64	$ 1	138	$ 11
Grant revenue
Revenue recognition
Total revenue	$ 942		$ 3,233

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Revenue recognition - Future performance obligations (Details) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020
Transaction Price Allocated to Future Performance Obligations
Amount of transaction price allocated to performance obligations	$ 6.9	$ 5.4
Service-type warranties and research services
Transaction Price Allocated to Future Performance Obligations
Amount of transaction price allocated to performance obligations	6.1
Undelivered licenses of intellectual property
Transaction Price Allocated to Future Performance Obligations
Amount of transaction price allocated to performance obligations	0.5
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01
Transaction Price Allocated to Future Performance Obligations
Amount of transaction price allocated to performance obligations	$ 6.1
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Transaction Price Allocated to Future Performance Obligations
Amount of transaction price allocated to performance obligations	$ 6.1
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	24 months

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Revenue recognition - Changes in deferred revenue from contracts with customers (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2021 USD ($)
Changes in deferred revenue from contracts with customers
Balance at beginning of period	$ 5,998
Deferral of revenue	3,969
Recognition of deferred revenue	(3,078)
Balance at end of period	$ 6,889

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Revenue recognition - Costs to obtain a contract (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2021 USD ($)
Change in the balance of costs to obtain a contract
Balance at beginning of period	$ 248
Deferral of costs to obtain a contract	311
Recognition of costs to obtain a contract	(229)
Balance at end of period	$ 330

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Revenue recognition - Practical expedients (Details)	6 Months Ended
	Jun. 30, 2021
Revenue recognition
Revenue, Practical Expedient, Financing Component [true false]	true
Revenue, Remaining Performance Obligation, Optional Exemption, Performance Obligation [true false]	true

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Revenue recognition - Grant revenue (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 29, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Total revenue		$ 25,371	$ 13,130	$ 52,580	$ 28,857
Research and Development Expense		6,754	$ 4,312	13,437	$ 8,580
RADx WP2
Contract value	$ 18,200
Research and Development Expense		2,900
Grant revenue
Total revenue		$ 942		3,233
Grant revenue | RADx WP2
Total revenue				7,595		$ 4,362
Contract value				$ 18,200		$ 18,200

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Revenue recognition - Summarizes the activity under WP2 (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 29, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Total revenue		$ 25,371	$ 13,130	$ 52,580	$ 28,857
Grant revenue
Disaggregation of Revenue [Line Items]
Total revenue		942		3,233
RADx WP2
Disaggregation of Revenue [Line Items]
Total WP2 grant amount	$ 18,200
RADx WP2 | Grant revenue
Disaggregation of Revenue [Line Items]
Total revenue				7,595		$ 4,362
Total proceeds used for assets				6,865		826
Total deferred proceeds for assets				996		2,478
Total deferred grant revenue				348		304
Total recognized				15,804		7,970
Total amount accrued		(2,088)		(2,088)		(2,968)
Total cash received				13,716		5,002
Total proceeds received				13,716		5,002
Total proceeds reasonably assured		$ 4,484		4,484		13,198
Total WP2 grant amount				$ 18,200		$ 18,200

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Net loss per share (Details) - shares	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Net loss per share
Number of dilutive securities excluded in the calculation of diluted net loss per share	2,849,137	3,234,437
Common stock
Net loss per share
Obligation to issue warrants, in shares	93,341	93,341
Unvested restricted common stock and restricted stock units
Net loss per share
Number of dilutive securities excluded in the calculation of diluted net loss per share	572,132	479,996
Outstanding stock options
Net loss per share
Number of dilutive securities excluded in the calculation of diluted net loss per share	2,277,005	2,744,441
Warrants
Net loss per share
Number of dilutive securities excluded in the calculation of diluted net loss per share		10,000

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Fair value of financial instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Cash equivalents	$ 162,072	$ 162,048
Total	162,072	162,048
Level 1
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Cash equivalents	162,072	162,048
Total	$ 162,072	$ 162,048

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Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Inventory
Raw Materials	$ 6,573	$ 5,265
Work in process	4,181	3,306
Finished goods	10,471	6,285
Total	$ 21,225	$ 14,856

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Allowance for Credit Losses (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Allowance for Credit Loss
Allowance for Doubtful Accounts Receivable, Beginning Balance	$ 370
Credit loss expense	20
Write-offs charged against allowances	(86)
Recoveries collected	73
Allowance for Doubtful Accounts Receivable, Ending Balance	377
Accounts receivable	$ 15,430	$ 17,184

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Other accrued expenses and other non-current liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Other accrued expenses and other non-current liabilities
Accrued inventory purchases	$ 1,139	$ 527
Accrued property and equipment purchases	926	670
Accrued royalties	829	1,845
Accrued professional services	781	797
Accrued development costs	571	323
Accrued other	837	683
Total accrued expenses	$ 5,083	$ 4,845

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Warrants, stock-based compensation, stock options, restricted stock and restricted stock units- Warrants (Details) - Warrants - USD ($)	Jan. 10, 2021	Jun. 30, 2021
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Warrants And Rights, Exercised	10,000
Exercise of common stock warrants (in shares)	7,347
Warrants and Rights Outstanding		$ 0

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Warrants, stock-based compensation, stock options, restricted stock and restricted stock units - Share-based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Share-based compensation expense	$ 3,650	$ 2,501	$ 7,036	$ 4,610
Cost of product revenue
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Share-based compensation expense	96	49	186	85
Cost of service and other revenue
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Share-based compensation expense	122	80	232	148
Research and development
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Share-based compensation expense	409	290	808	531
General and administrative
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Share-based compensation expense	$ 3,023	$ 2,082	$ 5,810	$ 3,846

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Warrants, stock-based compensation, stock options, restricted stock and restricted stock units - Stock-based award plans (Details) - shares		6 Months Ended
	Jan. 01, 2021	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2017
2007 Plan
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Shares available for grant under the plan (in shares)		0
2017 Plan
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Shares authorized under the plan (in shares)					1,042,314
Additional shares authorized	1,273,501
Shares available for grant under the plan (in shares)		1,621,476
Annual increase in the shares available for grant under the plan (as a percent of shares of common stock outstanding)		4.00%
2017 ESPP
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Shares authorized under the plan (in shares)			848,269
Shares available for grant under the plan (in shares)		1,149,407
Option periods		6 months
Annual increase in the shares available for grant under the plan (as a percent of shares of common stock outstanding)				1.00%
Increase in the shares available for grant under the plan (in shares)	318,375
Outstanding stock options
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Options outstanding (in shares)		2,277,005	2,494,045
Outstanding stock options | 2007 Plan
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Options outstanding (in shares)		728,297
Shares authorized under the plan (in shares)					2,490,290

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Warrants, stock-based compensation, stock options, restricted stock and restricted stock units - Stock options (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Aggregate intrinsic value
Share-based compensation expense	$ 3,650	$ 2,501	$ 7,036	$ 4,610
Outstanding stock options
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Options expiration period (in years)			10 years
Number outstanding
Outstanding at the beginning of the period (in shares)			2,494,045
Granted (in shares)			295,241
Exercised (in shares)			(392,379)
Cancelled or forfeited (in shares)			(119,902)
Outstanding at the end of the period (in shares)	2,277,005		2,277,005		2,494,045
Vested and expected to vest at the end of the period (in shares)	2,277,005		2,277,005
Exercisable at the end of the period (in shares)	1,410,504		1,410,504
Weighted-average exercise price
Outstanding at the beginning of the period (in dollars per share)			$ 17.73
Granted (in dollars per share)			68.49
Exercised (in dollars per share)			13.93
Cancelled or forfeited (in dollars per share)			33.67
Outstanding at the end of the period (in dollars per share)	$ 24.13		24.13		$ 17.73
Vested and expected to vest at the end of the period (in dollars per share)	24.13		24.13
Exercisable at the end of the period (in dollars per share)	$ 14.42		$ 14.42
Remaining contractual life
Outstanding (in years)			7 years 1 month 13 days		7 years 3 months 7 days
Vested and expected to vest at the end of the period (in years)			7 years 1 month 13 days
Exercisable at the end of the period (in years)			6 years 2 months 4 days
Aggregate intrinsic value
Outstanding at the beginning of the period			$ 71,760
Exercised	$ 3,900	1,700	20,200	$ 2,700
Outstanding at the end of the period	82,090		82,090		$ 71,760
Vested and expected to vest at the end of the period	82,090		82,090
Exercisable at the end of the period	62,395		$ 62,395
Weighted-average fair value of options granted			$ 32.30	$ 11.76
Share-based compensation expense	1,500	1,300	$ 3,000	$ 2,400
Intrinsic value of stock options exercised	$ 3,900	$ 1,700	$ 20,200	$ 2,700
Outstanding stock options | Subject to a four year vesting schedule with 25% vesting on the first anniversary and the remaining vesting ratably on a monthly basis over the remaining three years
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Vesting period (in years)			4 years
Vesting percentage 1 (as a percent)			25.00%
Outstanding stock options | Remaining 75% vesting ratably on a monthly basis over the remaining three years
Warrants, stock-based compensation, stock options, restricted stock and restricted stock units
Vesting period (in years)			3 years
Vesting percentage 1 (as a percent)			75.00%

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Warrants, stock-based compensation, stock options, restricted stock and restricted stock units - Restricted stock (Details) - shares	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	0	0

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Warrants, stock-based compensation, stock options, restricted stock and restricted stock units - Restricted stock units (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Weighted-average grant date fair value per share
Share-based compensation expense	$ 3,650	$ 2,501	$ 7,036	$ 4,610
Restricted stock units
Number of restricted stock units
Unvested restricted common stock at the beginning of the period (in shares)			478,581
Granted (in shares)			234,426
Vested (in shares)			(133,732)
Cancelled (in shares)			(46,949)
Unvested restricted common stock at the end of the period (in shares)	532,326		532,326
Weighted-average grant date fair value per share
Unvested restricted common stock at the beginning of the period (in dollars per share)			$ 28.08
Granted (in dollars per share)			67.11
Vested (in dollars per share)			23.85
Cancelled (in dollars per share)			38.35
Unvested restricted common stock at the end of the period (in dollars per share)	$ 45.42		$ 45.42
Share-based compensation expense	$ 2,000	$ 1,100	$ 3,700	$ 2,000
Total unrecognized compensation cost related to unvested stock awards	$ 22,200		$ 22,200
Period of recognition of unrecognized compensation cost			3 years
Restricted stock units | Vested in equal amounts annually over three years
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage 1 (as a percent)			33.00%
Restricted stock
Number of restricted stock units
Granted (in shares)	0		0
Unvested restricted common stock at the end of the period (in shares)	39,806		39,806
Weighted-average grant date fair value per share
Unvested restricted common stock at the end of the period (in dollars per share)	$ 3.12		$ 3.12
2017 Plan | Restricted stock units
Number of restricted stock units
Granted (in shares)			234,426
2017 Plan | Restricted stock units | Subject to a four year vesting schedule with 25% vesting on the first anniversary and the remaining vesting ratably on a monthly basis over the remaining three years
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period 1			4 years
Vesting period 2			3 years
Vesting percentage 1 (as a percent)			25.00%
Vesting percentage 2 (as a percent)			75.00%
Number of restricted stock units
Granted (in shares)			161,039
2017 Plan | Restricted stock units | Vested in equal amounts annually over three years
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period 1			3 years
Number of restricted stock units
Granted (in shares)			53,119
2017 Plan | Restricted stock units | Vested in equal amounts annually over two years
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period 2			3 years
Vesting percentage 2 (as a percent)			33.00%
Number of restricted stock units
Granted (in shares)			4,540
2017 Plan | Restricted stock units | Vested on May 31, 2020
Number of restricted stock units
Granted (in shares)			2,108
2017 Plan | Restricted stock units | Vest on December 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period 3			2 years
Number of restricted stock units
Granted (in shares)			13,620
2017 Plan | Restricted stock units | Vesting over remaining two years
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period 2			2 years

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Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Leases
Right-of-use assets	$ 11,754	$ 11,995
Long term lease liabilities	$ 21,210	$ 21,891

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Leases - Lease costs recognized (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Lease Costs
Operating lease costs	$ 663	$ 667	$ 1,334	$ 1,327
Total lease cost	663	667	1,334	1,327
Operating cash flows used for operating leases	$ 837	$ 407	$ 1,683	$ 832
Weighted average remaining lease term	9 years 7 months 6 days		9 years 7 months 6 days
Weighted average discount rate	9.73%		9.73%

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Commitments and contingencies - License agreements and Lease commitments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Tufts | License agreements
License agreements
Royalty expense	$ 0.4	$ 0.2	$ 0.8	$ 0.4

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Commitments and contingencies - Development and supply agreement and Legal contingencies (Details)	6 Months Ended
	Jun. 30, 2021
Commitments and contingencies
Period to purchase minimum number of commercial units	7 years

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Notes payable (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
	Apr. 14, 2014	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Long Term Debt
Non-cash interest expense		$ 0.1	$ 0.1	$ 0.1	$ 0.1
Loan agreement
Long Term Debt
Additional amounts available to borrow		$ 0.0		$ 0.0
Interest rate (as a percent)	8.00%
Prime rate | Loan agreement
Long Term Debt
Margin on variable interest rate (as a percent)	(5.25%)

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Notes payable - Debt payment obligations (Details) $ in Thousands	Jun. 30, 2021 USD ($)
Debt payment obligations due based on principal payments
2021	$ 7,688
Debt payment obligations	$ 7,688

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Collaboration and license arrangements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Collaboration and license arrangements
Revenue	$ 25,371	$ 13,130	$ 52,580	$ 28,857
Deferred revenue	500		500		$ 500
Joint development and license agreement
Collaboration and license arrangements
Revenue	$ 100		$ 400	$ 200
Joint development and license agreement | Maximum
Collaboration and license arrangements
Revenue		$ 100
Abbot license agreement
Collaboration and license arrangements
Number of days notice to terminate agreement			60 days
Initial license fee receivable			$ 10,000

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Employee benefit plans (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Employee benefit plans
Contribution made to the 401 (k) Plan	$ 0.2	$ 0.2	$ 0.4	$ 0.3

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Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Rollforward of goodwill balance
Balance as of beginning of period			$ 10,460
Cumulative translation adjustment			(339)
Balance as of end of period	$ 10,121		10,121		$ 10,460
Purchased intangible assets
Gross Carrying Value	16,400		16,400		16,400
Accumulated Amortization	(5,111)		(5,111)		(4,101)
Cumulative Translation Adjustment	885		885		1,417
Net Carrying Value	12,174		12,174		$ 13,716
Amortization expense	500	$ 500	1,000	$ 1,000
Estimated amortization expense
Current year (2021)	1,002		1,002
2022	1,930		1,930
2023	1,848		1,848
2024	1,733		1,733
2025	1,617		1,617
Thereafter	4,044		4,044
Estimated Amortization Expenses	12,174		$ 12,174
Developed technology
Purchased intangible assets
Estimated Useful Life			7 years		7 years
Gross Carrying Value	1,650		$ 1,650		$ 1,650
Accumulated Amortization	(1,159)		(1,159)		(1,036)
Net Carrying Value	491		$ 491		$ 614
Weighted average life remaining			3 years 7 months 2 days		4 years 1 month 2 days
Customer relationships
Purchased intangible assets
Gross Carrying Value	1,360		$ 1,360		$ 1,360
Accumulated Amortization	(706)		(706)		(618)
Cumulative Translation Adjustment	7		7		12
Net Carrying Value	661		$ 661		$ 754
Weighted average life remaining			6 years 6 months 29 days		7 years 29 days
Trade names
Purchased intangible assets
Estimated Useful Life			3 years		3 years
Gross Carrying Value	50		$ 50		$ 50
Accumulated Amortization	(50)		$ (50)		(49)
Net Carrying Value					$ 1
Weighted average life remaining					29 days
Know How
Purchased intangible assets
Estimated Useful Life			8 years 6 months		8 years 6 months
Gross Carrying Value	13,000		$ 13,000		$ 13,000
Accumulated Amortization	(3,060)		(3,060)		(2,296)
Cumulative Translation Adjustment	860		860		1,374
Net Carrying Value	10,800		$ 10,800		$ 12,078
Weighted average life remaining			6 years 6 months		6 years 11 months 26 days
Noncompete Agreements
Purchased intangible assets
Estimated Useful Life			5 years 6 months		5 years 6 months
Gross Carrying Value	340		$ 340		$ 340
Accumulated Amortization	(136)		(136)		(102)
Cumulative Translation Adjustment	18		18		31
Net Carrying Value	$ 222		$ 222		$ 269
Weighted average life remaining			3 years 6 months		3 years 11 months 26 days
Maximum | Customer relationships
Purchased intangible assets
Estimated Useful Life			10 years		10 years
Minimum | Customer relationships
Purchased intangible assets
Estimated Useful Life			8 years 6 months		8 years 6 months

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Related party transactions (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Tufts | License Agreement
Related party transactions
Royalty Expense	$ 0.4	$ 0.2	$ 0.8	$ 0.4
Harvard University
Related party transactions
Related party revenue	$ 0.2	$ 0.1	$ 0.2	$ 0.1

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Accumulated other comprehensive income (loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Accumulated other comprehensive income (loss)
Current period accumulated other comprehensive loss	$ 395	$ 1,174	$ (856)	$ 127
Cumulative Translation Adjustment
Accumulated other comprehensive income (loss)
Beginning balance			2,434	(153)
Current period accumulated other comprehensive loss			(856)	127
Ending Balance	1,578	(26)	1,578	(26)
Accumulated other comprehensive income (loss) [Member]
Accumulated other comprehensive income (loss)
Beginning balance			2,434	(153)
Current period accumulated other comprehensive loss	395	1,174	(856)	127
Ending Balance	$ 1,578	$ (26)	$ 1,578	$ (26)