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, 2023

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)

(617) 301-9400

(Registrant’s telephone number, including area code)

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 August 2, 2023, the registrant had 37,552,586 shares of common stock outstanding.

TQUANTERIX CORPORATION

INDEX TO FORM 10-Q

	Page
Note Regarding Forward-Looking Statements	3
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)	4
Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022	4
Consolidated Statements of Operations for the three and six months ended June 30, 2023 and 2022	5
Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2023 and 2022	6
Consolidated Statements of Stockholders’ Equity for the three and six months ended June 30, 2023 and 2022	7
Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022	8
Notes to Consolidated Financial Statements	9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3. Quantitative and Qualitative Disclosures About Market Risk	33
Item 4. Controls and Procedures	33
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	36
Item 4. Mine Safety Disclosures	36
Item 5. Other Information	36
Item 6. Exhibits	38
Signatures	39

2

NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) 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, forward-looking statements can be identified 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 related to our financial performance, and are subject to a number of risks, uncertainties, and assumptions, including those further described elsewhere in this Quarterly Report on Form 10-Q, in the section titled “Part I, Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 6, 2023, or in other filings that we make with the 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 us 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.

Readers should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in any forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance, or events and circumstances reflected in forward-looking statements will be achieved or occur. 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.

Readers should read this Quarterly Report on Form 10-Q and any documents referenced herein that we have filed with the SEC as exhibits to this Quarterly Report on Form 10-Q with the understanding that our actual future results, levels of activity, performance, and events and circumstances may be materially different from what we expect.

Service Marks, Trademarks and Trade Names

Unless the context otherwise requires, the terms “Quanterix,” the “Company,” “we,” “it,” “us,” and “our” in this Quarterly Report on Form 10-Q refer to Quanterix Corporation and its consolidated subsidiaries. “Quanterix,” “Simoa,” “Simoa HD-X,” “Simoa HD-1,” “SR-X,” “SP-X,” “HD-X,” 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, endorsement, or sponsorship of us by these other companies.

3

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

QUANTERIX CORPORATION

CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except per share data)

	June 30, 2023		December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	329,525	$	338,740
Accounts receivable (net of allowance for expected credit losses of $442 and $118 as of June 30, 2023 and December 31, 2022, respectively)		24,423		19,017
Inventory		18,156		16,786
Prepaid expenses and other current assets		6,954		6,860
Total current assets		379,058		381,403
Restricted cash		2,686		2,597
Property and equipment, net		18,328		20,162
Intangible assets, net		6,476		7,516
Operating lease right-of-use assets		20,380		21,223
Other non-current assets		2,282		1,298
Total assets	$	429,210	$	434,199
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	3,238	$	3,836
Accrued compensation and benefits		7,525		10,658
Accrued expenses and other current liabilities		6,777		5,133
Deferred revenue		10,421		8,644
Operating lease liabilities		3,986		2,687
Total current liabilities		31,947		30,958
Deferred revenue, net of current portion		1,304		1,415
Operating lease liabilities, net of current portion		39,378		41,417
Other non-current liabilities		1,225		1,469
Total liabilities		73,854		75,259
Commitments and contingencies (Note 12)
Stockholders’ equity:
Common stock, $0.001 par value, per share:
Authorized shares: 120,000; Issued and outstanding: 37,566 and 37,280 shares at June 30, 2023 and December 31, 2022, respectively		37		37
Additional paid-in capital		772,473		763,688
Accumulated other comprehensive loss		(2,825)		(2,623)
Accumulated deficit		(414,329)		(402,162)
Total stockholders’ equity		355,356		358,940
Total liabilities and stockholders’ equity	$	429,210	$	434,199

The accompanying notes are an integral part of these Consolidated Financial Statements.

4

QUANTERIX CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands, except per share data)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Revenues:
Product revenue	$	19,692	$	14,785	$	38,979	$	35,441
Service revenue		10,552		8,548		19,131		17,358
Collaboration and license revenue		629		92		997		178
Grant revenue		156		75		378		75
Total revenues		31,029		23,500		59,485		53,052
Costs of goods sold and services:
Cost of product revenue		7,236		9,921		14,269		20,667
Cost of service and other revenue		4,655		4,868		9,152		9,115
Total costs of goods sold and services		11,891		14,789		23,421		29,782
Gross profit		19,138		8,711		36,064		23,270
Operating expenses:
Research and development		5,946		6,625		10,666		13,659
Selling, general, and administrative		21,591		27,045		42,474		52,757
Other lease costs		1,162		—		1,938		—
Restructuring		—		—		(33)		—
Total operating expenses		28,699		33,670		55,045		66,416
Loss from operations		(9,561)		(24,959)		(18,981)		(43,146)
Interest income, net		3,886		552		7,335		604
Other expense, net		(154)		(358)		(146)		(575)
Loss before income taxes		(5,829)		(24,765)		(11,792)		(43,117)
Income tax (expense) benefit		(235)		(137)		(375)		62
Net loss	$	(6,064)	$	(24,902)	$	(12,167)	$	(43,055)
Net loss per common share, basic and diluted	$	(0.16)	$	(0.67)	$	(0.33)	$	(1.17)
Weighted-average common shares outstanding, basic and diluted		37,494		36,922		37,411		36,887

The accompanying notes are an integral part of these Consolidated Financial Statements.

5

QUANTERIX CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(amounts in thousands)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net loss	$	(6,064)	$	(24,902)	$	(12,167)	$	(43,055)
Other comprehensive loss:
Foreign currency translation		(244)		(1,447)		(202)		(2,644)
Total other comprehensive loss		(244)		(1,447)		(202)		(2,644)
Comprehensive loss	$	(6,308)	$	(26,349)	$	(12,369)	$	(45,699)

The accompanying notes are an integral part of these Consolidated Financial Statements.

6

QUANTERIX CORPORATION

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(amounts in thousands)

	Three Months Ended June 30, 2023
	Common stock
	Shares	Value			Additional paid-in capital		Accumulated other comprehensive loss		Accumulated deficit		Total stockholders' equity
Balance at March 31, 2023	37,424	$	37	$	768,141	$	(2,581)	$	(408,265)	$	357,332
Issuance of common stock under stock plans, including tax effects	142		—		139		—		—		139
Stock-based compensation expense	—		—		4,193		—		—		4,193
Foreign currency translation	—		—		—		(244)		—		(244)
Net loss	—		—		—		—		(6,064)		(6,064)
Balance at June 30, 2023	37,566	$	37	$	772,473	$	(2,825)	$	(414,329)	$	355,356
	Three Months Ended June 30, 2022
	Common stock
	Shares	Value			Additional paid-in capital		Accumulated other comprehensive loss		Accumulated deficit		Total stockholders' equity
Balance at March 31, 2022	36,899	$	37	$	750,742	$	(756)	$	(323,615)	$	426,408
Issuance of common stock under stock plans, including tax effects	76		—		211		—		—		211
Stock-based compensation expense	—		—		5,186		—		—		5,186
Foreign currency translation	—		—		—		(1,447)		—		(1,447)
Net loss	—		—		—		—		(24,902)		(24,902)
Balance at June 30, 2022	36,975	$	37	$	756,139	$	(2,203)	$	(348,517)	$	405,456

	Six Months Ended June 30, 2023
	Common stock
	Shares		Value			Additional paid-in capital		Accumulated other comprehensive loss		Accumulated deficit		Total stockholders' equity
Balance at December 31, 2022	37,280	$		37	$	763,688	$	(2,623)	$	(402,162)	$	358,940
Issuance of common stock under stock plans, including tax effects	286			—		690		—		—		690
Stock-based compensation expense	—			—		8,095		—		—		8,095
Foreign currency translation	—			—		—		(202)		—		(202)
Net loss	—			—		—		—		(12,167)		(12,167)
Balance at June 30, 2023	37,566		$	37	$	772,473	$	(2,825)	$	(414,329)	$	355,356
	Six Months Ended June 30, 2022
	Common stock
	Shares		Value			Additional paid-in capital		Accumulated other comprehensive loss		Accumulated deficit		Total stockholders' equity
Balance at December 31, 2021	36,768		$	37	$	745,936	$	441	$	(305,462)	$	440,952
Issuance of common stock under stock plans, including tax effects	207			—		1,190		—		—		1,190
Stock-based compensation expense	—			—		9,013		—		—		9,013
Foreign currency translation	—			—		—		(2,644)		—		(2,644)
Net loss	—			—		—		—		(43,055)		(43,055)
Balance at June 30, 2022	36,975		$	37	$	756,139	$	(2,203)	$	(348,517)	$	405,456

The accompanying notes are an integral part of these Consolidated Financial Statements.

7

QUANTERIX CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(amounts in thousands)

	Six Months Ended June 30,
	2023		2022
Cash flows from operating activities:
Net loss	$	(12,167)	$	(43,055)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense		2,845		2,790
Credit losses on accounts receivable		324		581
Foreign currency losses		205		—
Operating lease right-of-use asset amortization		1,002		925
Stock-based compensation expense		8,095		9,013
Deferred income taxes		343		—
Loss on disposal of fixed assets		—		6
Changes in assets and liabilities:
Accounts receivable		(5,750)		3,479
Inventory		(1,181)		180
Prepaid expenses and other current assets		(527)		960
Other non-current assets		(965)		2
Accounts payable		(631)		(3,220)
Accrued compensation and benefits, accrued expenses, and other current liabilities		(1,326)		(4,387)
Deferred revenue		1,666		6,228
Operating lease liabilities		(730)		(3,128)
Other non-current liabilities		(72)		(9)
Net cash used in operating activities		(8,869)		(29,635)
Cash flows from investing activities:
Purchases of property and equipment		(784)		(6,454)
Proceeds from RADx grant on assets purchased		—		520
Net cash used in investing activities		(784)		(5,934)
Cash flows from financing activities:
Proceeds from common stock issued under stock plans		777		1,190
Payments for employee taxes withheld on stock-based compensation awards		(87)		—
Net cash provided by financing activities		690		1,190
Net decrease in cash, cash equivalents, and restricted cash		(8,963)		(34,379)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		(163)		(776)
Cash, cash equivalents, and restricted cash at beginning of period		341,337		399,042
Cash, cash equivalents, and restricted cash at end of period	$	332,211	$	363,887
Supplemental disclosure of cash flow information:
Cash paid for taxes	$	502	$	—
Operating lease right-of-use assets obtained in exchange for lease liabilities	$	—	$	22,376
Shares received as consideration under product sales agreement (Note 3)	$	1,000	$	—

The accompanying notes are an integral part of these Consolidated Financial Statements.

8

QUANTERIX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 1. Organization and Nature of Business

Quanterix Corporation (“Quanterix” or 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. The Company is currently focusing on protein detection, but its Simoa platforms have also demonstrated applicability across other testing applications, including detection of nucleic acids and small molecules.

The Company also provides contract research services for customers through its CLIA-certified Accelerator Laboratory. The Accelerator Laboratory provides customers with access to Simoa technology and supports multiple projects and services, including sample testing, homebrew assay development, and custom assay development. To date, the Company has completed over 2,000 projects for more than 450 customers from all over the world using its Simoa platforms.

Note 2. Significant Accounting Policies

Basis of Presentation

The Consolidated Financial Statements have been prepared in accordance with the generally accepted accounting principles in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) regarding interim financial reporting on Form 10-Q. Accordingly, certain information and disclosures required for complete financial statements prepared in accordance with U.S. GAAP are not included herein. The Consolidated Balance Sheet included herein was derived from the audited Consolidated Financial Statements as of December 31, 2022, but does not include all disclosures required by U.S. GAAP on an annual reporting basis. Certain prior period amounts have been reclassified to conform to the current period presentation.

These Consolidated Financial Statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on March 6, 2023. Since the date of that filing, there have been no changes or updates to the Company’s significant accounting policies, other than those described below.

In the opinion of management, the Consolidated Financial Statements contain all normal, recurring adjustments necessary for a fair statement of financial position, results of operations, comprehensive loss, and cash flows as of the dates and for the interim periods presented. The results of operations for the three and six months ended June 30, 2023 may not be indicative of the results for the full fiscal year ended December 31, 2023 or any other period.

The Company’s fiscal year is the twelve-month period from January 1 through December 31.

Use of Estimates

The preparation of the Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, revenues, and expenses reported and disclosures in the financial statements and accompanying notes. Such estimates include, but are not limited to, revenue recognition, valuation of inventory, leases, valuation of intangible and other long-lived assets, recoverability of deferred tax assets, ongoing impairment reviews, and stock-based compensation expense. The Company bases its estimates on historical experience, known trends, market specific information, or other relevant factors it believes to be reasonable.

9

On an ongoing basis, management evaluates its estimates and changes in estimates are recorded in the period in which they become known. Actual results may differ from these estimates.

Foreign Currency

             The functional currency of the Company’s subsidiaries is their respective local currencies. These subsidiary financial statements are translated into U.S. dollars using the period-end exchange rates for assets and liabilities, average exchange rates during the corresponding period for revenue and expenses, and historical rates for equity. The effects of foreign currency translation adjustments are recorded in accumulated other comprehensive loss within stockholders’ equity on the Consolidated Balance Sheets.

               Foreign currency transaction gains (losses) are included in other income (expense), net on the Consolidated Statements of Operations. Foreign exchange losses were not material during the six months ended June 30, 2023, and were $0.4 million during the six months ended 2022.

Principles of Consolidation

The Consolidated Financial Statements include the accounts of Quanterix and its wholly-owned subsidiaries. All intercompany transactions have been eliminated in consolidation.

In accordance with Accounting Standards Codification (“ASC”) 810 – Consolidation, the Company assesses the terms of its investment interests in entities to determine if any meet the definition of a variable interest entity (“VIE”) and require consolidation into its Consolidated Financial Statements. Refer to Note 15 –Variable Interest Entities for further discussion.

Presentation of Restricted Cash

The following table summarizes the period ending cash and cash equivalents as presented on the Consolidated Balance Sheets and the total cash, cash equivalents, and restricted cash as presented on the Consolidated Statements of Cash Flows (in thousands):

	As of June 30,
	2023		2022
Cash and cash equivalents	$	329,525	$	361,293
Restricted cash (1)		2,686		2,594
Cash, cash equivalents, and restricted cash	$	332,211	$	363,887

(1) Restricted cash consists of collateral for a letter of credit issued as security for several of the Company’s leased facilities and to secure the Company’s corporate credit card program. The short-term or long-term classification is determined in accordance with the expiration of the underlying letter of credit and security.

Recent Accounting Pronouncements

There are no new accounting pronouncements issued or effective in the current or future periods that are expected to have a material impact on the Company’s Consolidated Financial Statements or accompanying notes.

10

Note 3. Revenue and Related Matters

Disaggregated Revenue

The following tables disaggregate the Company’s revenue from contracts with customers by revenue type and geography (based on the location products and services are consumed) (in thousands):

	Three Months Ended June 30, 2023								Three Months Ended June 30, 2022
	North America		EMEA		Asia Pacific		Total		North America		EMEA		Asia Pacific		Total
Product revenue
Instruments	$	1,042	$	971	$	1,473	$	3,486	$	2,473	$	2,127	$	1,004	$	5,604
Consumable and other products		9,811		4,547		1,848		16,206		4,719		3,588		874		9,181
Total	$	10,853	$	5,518	$	3,321	$	19,692	$	7,192	$	5,715	$	1,878	$	14,785
Service revenue
Service-type warranties	$	1,559	$	753	$	153	$	2,465	$	1,320	$	688	$	124	$	2,132
Research services		6,321		711		453		7,485		5,511		316		8		5,835
Other services		372		219		11		602		317		237		27		581
Total	$	8,252	$	1,683	$	617	$	10,552	$	7,148	$	1,241	$	159	$	8,548
Collaboration and license revenue	$	629	$	—	$	—	$	629	$	43	$	49	$	—	$	92
Grant revenue	$	156	$	—	$	—	$	156	$	75	$	—	$	—	$	75
Total revenues	$	19,890	$	7,201	$	3,938	$	31,029	$	14,458	$	7,005	$	2,037	$	23,500

	Six Months Ended June 30, 2023								Six Months Ended June 30, 2022
	North America		EMEA		Asia Pacific		Total		North America		EMEA		Asia Pacific		Total
Product revenue
Instruments	$	3,186	$	2,952	$	2,607	$	8,745	$	4,638	$	4,173	$	3,015	$	11,826
Consumable and other products		17,268		9,487		3,479		30,234		13,552		8,014		2,049		23,615
Total	$	20,454	$	12,439	$	6,086	$	38,979	$	18,190	$	12,187	$	5,064	$	35,441
Service revenue
Service-type warranties	$	3,116	$	1,459	$	288	$	4,863	$	2,603	$	1,347	$	216	$	4,166
Research services		11,510		945		568		13,023		11,607		447		21		12,075
Other services		754		476		15		1,245		601		448		68		1,117
Total	$	15,380	$	2,880	$	871	$	19,131	$	14,811	$	2,242	$	305	$	17,358
Collaboration and license revenue	$	997	$	—	$	—	$	997	$	43	$	83	$	52	$	178