What changed in this filing

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Item 1. Financial Statements

2024-11-06 compared with 2024-08-06 · 116 added, 92 removed, 372 unchanged (36% of the section changed)

4 unchanged sentences

(in thousands, except per share amounts)

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Current Assets:

Cash and cash equivalents $ 278,571 $ 290,407

Short-term investments 9,142 —

Accounts receivable, net of allowance of $ 1,237 and $ 1,216

44 unchanged sentences

(in thousands, except per share amounts)

For the Three Months Ended June 30, For the Six Months Ended June 30,

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2024 2023 2024 2023

15 unchanged sentences

(Loss) income before income taxes ( 3,218 ) 13,506 ( 6,494 ) 35,538

INCOME TAX EXPENSE (BENEFIT) 381 ( 166 ) 363 ( 391 )

INCOME TAX EXPENSE 678 2,347 1,041 1,956

LOSS ON EQUITY INVESTMENT ( 611 ) — ( 1,171 ) —

11 unchanged sentences

(in thousands)

For the Three Months Ended June 30, For the Six Months Ended June 30,

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2024 2023 2024 2023

9 unchanged sentences

(in thousands)

For the Six Months Ended June 30,

For the Nine Months Ended September 30,

OPERATING ACTIVITIES:

6 unchanged sentences

Provision for credit losses 521 ( 75 )

Unrealized foreign currency (gain) loss ( 48 ) 106

Unrealized foreign currency gain ( 154 ) ( 66 )

Interest expense on finance leases 20 42

1 unchanged sentence

Deferred income taxes 165 ( 490 )

Loss on sale of fixed assets ( 121 ) —

Change in the estimated fair value of acquisition-related contingent consideration — ( 99 )

10 unchanged sentences

Purchases of short-term investments ( 53,244 ) ( 74,652 )

Purchase of equity method investee ( 28,333 ) —

Investment in equity method investee ( 30,000 ) —

Proceeds from maturities and redemptions of short-term investments 53,052 94,980

2 unchanged sentences

Proceeds from funding under government contract — 24,290

Net cash provided by (used in) investing activities ( 40,865 ) 38,171

Net cash (used in) provided by investing activities ( 33,533 ) 35,600

FINANCING ACTIVITIES:

9 unchanged sentences

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

Cash paid for income taxes $ 1,607 $ 623

Cash (refunds) paid for income taxes $ 1,637 $ ( 5,733 )

Non-cash investing and financing activities

Accrued property and equipment purchases $ 103 $ 155

Accrued property and equipment purchases under government contracts $ — $ 2

See accompanying notes to the consolidated financial statements.

12 unchanged sentences

These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

Results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results of operations expected for the full year.

Results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of the results of operations expected for the full year.

Summary of Significant Accounting Policies

5 unchanged sentences

Available-for-sale securities are carried at fair value, based upon quoted market prices, with unrealized gains and losses, if any, reported in stockholders’ equity as a component of accumulated other comprehensive loss.

The following is a summary of the Company's available-for-sale securities (in thousands):

Losses Fair Value

June 30, 2024

Guaranteed investment certificates $ 9,142 $ — $ — $ 9,142

Total $ 9,142 $ — $ — $ 9,142

At June 30, 2024, maturities of the Company's available-for-sale securities were as follows:

Less than one year $ 9,142 $ — $ — $ 9,142

Greater than one year $ — $ — $ — $ —

The Company had no available-for-sale securities as of December 31, 2023.

The Company had no available-for-sale securities as of September 30, 2024 and December 31, 2023.

Fair Value of Financial Instruments

As of June 30, 2024 and December 31, 2023, the carrying values of cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate their respective fair values based on their short-term nature.

As of September 30, 2024 and December 31, 2023, the carrying values of cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate their respective fair values based on their short-term nature.

Fair value measurements of all financial assets and liabilities that are being measured and reported on a fair value basis are required to be classified and disclosed in one of the following three categories:

2 unchanged sentences

Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

All of the Company's guaranteed investment certificates are measured as Level 1 instruments as of June 30, 2024.

Included in cash and cash equivalents at June 30, 2024 and December 31, 2023 was $ 60.3 million and $ 71.7 million, respectively, of guaranteed investment certificates.

All of the Company's guaranteed investment certificates are measured as Level 1 instruments.

Also included in cash and cash equivalents at June 30, 2024 and December 31, 2023 was $ 115.6 million and $ 112.7 million, respectively, invested in money market funds.

All of the Company's guaranteed investment certificates are measured as Level 1 instruments as of September 30, 2024.

Included in cash and cash equivalents at September 30, 2024 and December 31, 2023 was $ 42.5 million and $ 71.7 million, respectively, of guaranteed investment certificates.

Also included in cash and cash equivalents at September 30, 2024 and December 31, 2023 was $ 117.1 million and $ 112.7 million, respectively, invested in money market funds.

These money market funds have investments in U.S.

4 unchanged sentences

The assets of the plan are held in mutual funds and company stock.

The fair value of the plan assets as of both June 30, 2024 and December 31, 2023 was $ 0.7 million and was calculated using the quoted market prices of the assets as of those dates.

The fair value of the plan assets as of September 30, 2024 and December 31, 2023 was $ 0.7 million and $ 0.8 million, respectively, and was calculated using the quoted market prices of the assets as of those dates.

All investments in the plan are classified as trading securities and measured as Level 1 financial instruments.

4 unchanged sentences

Through this relationship, the Company expects to be able to offer a more comprehensive range of low-cost diagnostic tests and molecular sample management solutions to the Company's customers globally.

As of June 30, 2024, the Company had funded $ 28.3 million for an interest in Sapphiros, with an aggregate commitment of up to $ 30.0 million, of which the remainder was funded in July 2024.

The Company has recorded the investment using the equity method in accordance with Accounting Standards Codification ("ASC") Topic 323, Investments—Equity Method and Joint Ventures—Overall.

As of September 30, 2024, the Company had funded $ 30.0 million for its interest in Sapphiros.

The Company recorded the investment using the equity method in accordance with Accounting Standards Codification ("ASC") Topic 323, Investments—Equity Method and Joint Ventures—Overall.

In accordance with the equity method, the Company's equity investment is presented net of its share of any gains or losses of the investee.

The Company has elected as its accounting policy to recognize its share of any income or loss in Sapphiros on a three-month lag.

The investment in Sapphiros of $ 27.8 million as of June 30, 2024 is included in the investment in equity method investee line of the Company's balance sheet and is measured as a Level 3 investment.

The Company has no unconditional obligations or guarantees to, or in support of, our equity method investee and its operations.

In conjunction with the preparation of the Company's June 30, 2024 financial statements, the Company considered whether the carrying values of Sapphiros was impaired and concluded that no such impairment existed.

The investment in Sapphiros of $ 28.8 million as of September 30, 2024 is included in the investment in equity method investee line of the Company's balance sheet and is measured as a Level 3 investment.

The Company has no unconditional obligations or guarantees to, or in support of, its equity method investee and its operations.

In conjunction with the preparation of the Company's September 30, 2024 financial statements, the Company considered whether the carrying value of the investment in Sapphiros was impaired and concluded that no such impairment existed.

There was no similar investment as of December 31, 2023.

Foreign Currency Transactions

Net foreign exchange gains and (losses) resulting from foreign currency transactions that are included in other income in the Company's consolidated statements of operations were $ 0.1 million and $( 0.5 ) million for the three months ended June 30, 2024 and 2023, respectively.

Net foreign exchange gains and (losses) resulting from foreign currency transactions for the six months ended June 30, 2024 and 2023 were $ 0.3 million and $( 0.5 ) million, respectively.

Net foreign exchange gains and (losses) resulting from foreign currency transactions that are included in other income in the Company's consolidated statements of operations were $( 0.2 ) million and $( 0.1 ) million for the three months ended September 30, 2024 and 2023, respectively.

Net foreign exchange gains and (losses) resulting from foreign currency transactions for the nine months ended September 30, 2024 and 2023 were $ 0.1 million and $( 0.7 ) million, respectively.

Impairment of Long-Lived Assets

5 unchanged sentences

The Company performed an undiscounted cash flow analysis and determined the carrying values of the property, plant and equipment and ROU assets could not be recovered through the sum of the undiscounted future cash flows and were impaired.

During the six months ended June 30, 2024 the Company recognized aggregate pre-tax impairment charges of $ 1.2 million and $ 0.3 million to its operating and finance ROU assets, respectively.

These charges are reported in the Company's consolidated statement of operations.

The impact of the impairments on the Company's property, plant, equipment for the six months ended June 30, 2024 is discussed further in Note 4.

During the nine months ended September 30, 2024 the Company recognized aggregate pre-tax impairment charges of $ 1.2 million and $ 0.3 million to its operating and finance ROU assets, respectively.

These charges

are reported in the Company's consolidated statement of operations.

The impact of the impairments on the Company's property, plant, equipment for the nine months ended September 30, 2024 is discussed further in Note 4.

Accumulated Other Comprehensive Loss

3 unchanged sentences

Other comprehensive loss ( 2,259 ) ( 2,259 )

Balance at June 30, 2024 $ ( 18,631 ) $ ( 18,631 )

Balance at September 30, 2024 $ ( 17,200 ) $ ( 17,200 )

Recent Accounting Pronouncements

15 unchanged sentences

Amounts earned for the Company's guaranteed profit which covered project management costs were recognized straight-line in other income over the term of the government contract.

The Company recognized no such income during the three and six months ended June 30, 2024.

The Company recognized $ 0.6 million and $ 1.1 million of such income during the three and six months ended June 30, 2023, respectively.

The Company recognized no such income during the three and nine months ended September 30, 2024.

The Company recognized $ 0.6 million and $ 1.7 million of such income during the three and nine months ended September 30, 2023, respectively.

The DOD also reimbursed the Company for certain engineering consulting costs.

These expenses are reflected in research and development expenses as incurred with the corresponding amount presented in other income.

The Company recognized no such costs during the three and six months ended June 30, 2024.

The Company recognized $ 0.5 million and $ 1.6 million of such costs during the three and six months ended June 30, 2023, respectively.

The Company recognized no such costs during the three and nine months ended September 30, 2024.

The Company recognized $ 0.4 million and $ 2.0 million of such costs during the three and nine months ended September 30, 2023, respectively.

The activity corresponding to the government contracts included in the Company's consolidated statements of cash flows for the cumulative period ended December 31, 2023 is as follows (in thousands):

3 unchanged sentences

Inventories (in thousands)

June 30, December 31,

September 30, December 31,

Raw materials $ 19,948 $ 20,727

3 unchanged sentences

Property, Plant and Equipment, net (in thousands)

June 30, December 31,

September 30, December 31,

Land $ 1,118 $ 1,118

8 unchanged sentences

During the first quarter of 2024, the Company initiated a strategic plan to transition away from the microbiome molecular sequencing services business and to exit operations at its Belgium location.

As a result of these decisions, the Company determined that the carrying values of all the property, plant, and equipment of its Diversigen and Novosanis subsidiaries were not recoverable and recorded an aggregate pre-tax asset impairment charge of $ 1.8 million during the six months ended June 30, 2024.

As a result of these decisions, the Company determined that the carrying values of all of Diversigen and Novosanis' property, plant, and equipment were not recoverable and recorded an aggregate pre-tax asset impairment charge of $ 1.8 million during the nine months ended September 30, 2024.

During the second quarter of 2024, the Company determined a manufacturing line will no longer be utilized.

As a result of this decision, the Company determined that the carrying value of the equipment was not recoverable and recorded an aggregate pre-tax impairment charge of $ 1.1 million during the six months ended June 30, 2024.

During the six months ended June 30, 2023, the Company determined several manufacturing lines will not be utilized due to changes in forecasted demand for the products the equipment is intended to produce.

During the nine months ended September 30, 2023, the Company determined several manufacturing lines would no longer be utilized due to changes in forecasted demand for the products the equipment was intended to produce.

Additionally, the Company elected not to proceed with certain leasehold improvements to its research and development laboratories.

As a result of these decisions, the Company determined that the carrying values of the equipment and leasehold improvements made to date were not recoverable and recorded an aggregate pre-tax asset impairment charge of $ 1.3 million during the six months ended June 30, 2023.

Due to the extremely specialized nature of the property, plant, and equipment in each triggering event noted above and due to various market data points, the estimated fair value of all assets was determined to be zero.

These charges are reported within loss on impairments in the consolidated statement of operations.

These charges are reported within loss on impairments in the consolidated statements of operations.

Accrued Expenses and Other Current Liabilities (in thousands)

June 30, December 31,

September 30, December 31,

Payroll and related benefits $ 9,320 $ 14,654

8 unchanged sentences

The charges for termination benefits included in the Company's consolidated statements of operations are as follows (in thousands):

For the Three Months Ended June 30, For the Six Months Ended June 30,

2024 2023 2024 2023

For the Nine Months Ended September 30,

Cost of products and services sold $ 369

2 unchanged sentences

General and administrative 787

$ — $ 629 $ — $ 3,264

As of June 30, 2024 the Company had fully paid the $ 3.3 million related to the reduction in workforce.

No additional expense associated with the 2023 reduction in workforce was incurred during the six months ended June 30, 2024.

As of September 30, 2024 the Company has fully paid the $ 3.3 million related to the reduction in workforce.

No additional expense associated with the 2023 reduction in workforce was incurred during the nine months ended September 30, 2024.

This plan was completed as of June 30, 2024.

3 unchanged sentences

The charges for termination benefits included in the Company's consolidated statements of operations are as follows (in thousands):

For the Six Months Ended June 30,

For the Nine Months Ended September 30,

Cost of products and services sold $ 231

2 unchanged sentences

General and administrative 17

As of June 30, 2024 the Company had $ 51.8 thousand accrued and had paid $ 0.4 million related to the reduction in workforce.

No additional expense associated with the Q1 2024 reduction in workforce was incurred during the three months ended June 30, 2024 .

As of September 30, 2024 the Company had $ 6.0 thousand accrued and had paid $ 0.4 million related to the reduction in workforce.

No additional expense associated with the Q1 2024 reduction in workforce was incurred during the three months ended September 30, 2024.

The Company expects this plan to be completed by December 31, 2024.

Q2 2024 Reduction in Workforce

2024, discontinue the Diversigen molecular services line of business by the end of June 30, 2024, and consolidate facilities by third-party manufacturing activities into its Pennsylvania facilities by the end of the third quarter of 2025.

During the second quarter of 2024, the Company executed an additional reduction in workforce as the Company notified employees of its intention to consolidate its Novosanis site in Belgium into other locations by the end of December 31, 2024, discontinue the Diversigen molecular services line of business by the end of June 30, 2024, and consolidate facilities by bringing third-party manufacturing activities into its Pennsylvania facilities by the end of the third quarter of 2025.

This was accounted for pursuant to ASC 420, Exit or Disposal Cost Obligations .

The charges for termination benefits included in the Company's consolidated statements of operations are as follows (in thousands):

For the Three Months Ended June 30,

For the Three Months Ended September 30, For the Nine Months Ended September 30,

Cost of products and services sold $ — $ 889

2 unchanged sentences

General and administrative — 160

Total $ 1,652

As of June 30, 2024 the Company had $ 1.5 million accrued and had paid $ 0.2 million related to the reduction in workforce.

As of September 30, 2024 the Company had $ 0.9 million accrued and had paid $ 0.7 million related to the reduction in workforce.

No additional expense associated with the Q2 2024 reduction in workforce was incurred during the three months ended September 30, 2024 .

The Company expects this plan to be completed by September 2025.

Q3 2024 Reduction in Workforce

During the third quarter of 2024, the Company executed a reduction in workforce largely as the Company notified certain employees of its intention to discontinue its risk assessment business.

Additional employees were notified in the fourth quarter of 2024 and additional severance costs will be incurred.

This was accounted for pursuant to ASC 420, Exit or Disposal Cost Obligations .

The charges for termination benefits included in the Company's consolidated statements of operations are as follows (in thousands):

For the Three Months Ended September 30,

Cost of products and services sold $ 7

Research and development —

Sales and marketing 346

General and administrative —

As of September 30, 2024 the Company had $ 0.3 million accrued and had paid $ 7.1 thousand related to the reduction in workforce.

The Company expects this plan to be completed by January 2026.

Revenues by product line .

The following table represents total net revenues by product line (in thousands):

For the Three Months Ended June 30, For the Six Months Ended June 30,

2024 2023 2024 2023

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2024 2023 2024 2023

HIV $ 18,347 $ 16,650 $ 45,379 $ 46,518

2,155 50,199 44,222 216,115

Molecular Sample Management Solutions (2)

3 unchanged sentences

1,911 2,554 6,265 7,540

Molecular Services 810 1,354 1,683 2,733

Other product and service revenues (4)

1,196 638 2,623 1,739

Molecular Services 9 834 1,692 3,567

Net product and services revenues 39,652 89,014 147,380 326,666

9 unchanged sentences

The following table represents total net revenues by geographic area, based on the location of the customer (in thousands):

For the Three Months Ended June 30, For the Six Months Ended June 30,

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2024 2023 2024 2023

4 unchanged sentences

Customer and Vendor Concentrations .

At June 30, 2024, one non-commercial customer accounted for 22 % of the Company's consolidated accounts receivable.

The same non-commercial customer accounted for 40 % of the Company's consolidated accounts receivable as of December 31, 2023.

The same non-commercial customer also accounted for 33 % and 56 % of net consolidated revenues for the three months ended June 30, 2024 and 2023, respectively.

The same non-

commercial customer also accounted for 37 % and 70 % of net consolidated revenues for the six months ended June 30, 2024 and 2023, respectively.

The following table represents the concentration risk.

For the Three Months Ended September 30, For the Nine Months Ended September 30,

Revenue Concentration 2024 2023 2024 2023

Commercial customer (1)

11 % NA NA NA

Commercial customer (1)

10 % NA NA NA

Non-Commercial customer (2)

NA 56 % 26 % 66 %

September 30, December 31,

Accounts Receivable 2024 2023

Commercial customer (1)

Non-Commercial customer (2)

(1) Each commercial customer is different.

(2) Same non-commercial customer.

The Company currently purchases certain products and critical components of its products from sole-supply vendors.

4 unchanged sentences

The Company records deferred revenue when funds are received prior to the recognition of the associated revenue.

Deferred revenue as of June 30, 2024 and December 31, 2023 included customer prepayments of $ 1.4 million and $ 1.2 million, respectively.

Deferred revenue as of December 31, 2023 also included $ 0.4 million associated with a long-term contract that has variable pricing based on volume.

The average price over the life of the contract was determined and revenue is recognized at that average price.

The $ 0.4 million associated with the long-term contract met the criteria to be recognized as revenue during the six months ended June 30, 2024, and as such there is no equivalent balance remaining in deferred revenue at June 30, 2024.

Deferred revenue recognized for the three months ended June 30, 2024 and 2023, was $ 2.0 million and $ 0.9 million , respectively.

Deferred revenue recognized for the six months ended June 30, 2024 and 2023, was $ 2.7 million and $ 1.8 million, respectively.

Deferred revenue as of September 30, 2024 and December 31, 2023 included customer prepayments of $ 1.6 million and $ 1.2 million, respectively.

Deferred revenue as of December 31, 2023 also included $ 0.4 million associated with a long-term contract that had variable pricing based on volume.

The average price over the life of the contract was determined and revenue was recognized at that average price.

The $ 0.4 million associated with the long-term contract at December 31, 2023 met the criteria to be recognized as revenue during the nine months ended September 30, 2024, and as such there was no equivalent balance remaining in deferred revenue at September 30, 2024.

Deferred revenue recognized for the three months ended September 30, 2024 and 2023, was $ 0.5 million and $ 0.4 million , respectively.

Deferred revenue recognized for the nine months ended September 30, 2024 and 2023, was $ 3.3 million and $ 2.2 million, respectively.

The components of income tax expense (benefit) are as follows (in thousands):

For the Three Months Ended June 30, Six Months Ended June 30,

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2024 2023 2024 2023

1 unchanged sentence

Foreign income tax expense (benefit) 660 1,216 1,250 ( 432 )

Foreign withholding tax — — — —

$ 678 $ 2,347 $ 1,041 $ 1,956

During the three months ended June 30, 2024 and 2023, the Company recorded income tax expense and benefit of $ 0.4 million and $ 0.2 million, respectively.

The three months ended June 30, 2024 net tax expense increase is due to having both U.S.

and foreign pretax income in 2024 compared to a foreign pretax loss for the three months ended June 30, 2023.

During the three months ended June 30, 2024, the state income taxes declined compared to the three months ended June 30, 2023 due to lower state pretax income in 2024.

During the six months ended June 30, 2024 and 2023, the Company recorded income tax expense and benefit of $ 0.4 million and $ 0.4 million, respectively.

Foreign pretax income increased during the six months ended June 30, 2024 compared to a foreign pretax loss offset by lower state pretax income for six months ended June 30, 2023.

During the three months ended September 30, 2024 and 2023, the Company recorded income tax expense of $ 0.7 million and $ 2.3 million, respectively.

The three months ended September 30, 2024 net tax expense decrease is due to having a U.S.

pretax loss and foreign pretax income in 2024 compared to a U.S.

and foreign pretax income for the three months ended September 30, 2023.

During the nine months ended September 30, 2024 and 2023, the Company recorded income tax expense of $ 1.0 million and $ 2.0 million, respectively.

Foreign pre-tax income increased during the nine months ended September 30, 2024 compared to a foreign pre-tax loss during the nine months ended September 30, 2023.

In addition, there was lower state pre-tax income for nine months ended September 30, 2024 compared to 2023.

Income tax expense reflects taxes due to the taxing authorities and the tax effects of temporary differences between the basis of assets and liabilities recognized for financial reporting and tax purposes, and net operating loss and tax credit carryforwards.

The significant components of the Company's total deferred tax liability as of June 30, 2024 and at December 31, 2023 relate to the tax effects of the basis difference between the intangible assets acquired in its acquisitions for financial reporting and for tax purposes along with basis differences arising from accelerated tax depreciation of fixed assets.

The significant components of the Company's total deferred tax liability as of September 30, 2024 and at December 31, 2023 relate to the tax effects of the basis difference arising from accelerated tax depreciation of fixed assets.

A valuation allowance is recorded to the extent it is more likely than not that some portion or all of the deferred tax assets will not be realized.

A full valuation allowance was recorded on the Company’s U.S.

deferred tax assets as of June 30, 2024 and December 31, 2023.

deferred tax assets as of September 30, 2024 and December 31, 2023.

Income (Loss) Per Share

3 unchanged sentences

Basic and dilutive computations of net loss per share are the same in periods in which a net loss exists as the dilutive effects of excluded items would be anti-dilutive.

For the three months ended June 30, 2024 and 2023, outstanding common stock options, unvested restricted stock, and unvested performance stock units representing 1,010 shares and 966 shares, respectively, were excluded from the computation of diluted loss per share.

For the six months ended June 30, 2024, outstanding common stock options, unvested restricted stock, and unvested performance stock units representing 1,333 shares, were excluded from the computation of diluted loss per share.

For the six months ended June 30, 2023, outstanding common stock options, unvested restricted stock, and unvested performance stock units representing 2,030 shares were excluded from the computation of diluted earnings per share as their inclusion would have been anti-dilutive.

For the three and nine months ended September 30, 2024, outstanding common stock options, unvested restricted stock, and unvested performance stock units representing 389 shares and 999 shares, respectively, were excluded from the computation of diluted loss per share.

For the three and nine months ended September 30, 2023, outstanding common stock options, unvested restricted stock, and unvested performance stock units representing 2,027 and 2,048 shares, respectively, were excluded from the computation of diluted earnings per share as their inclusion would have been anti-dilutive.

Stockholders’ Equity

Reconciliation of the changes in stockholders' equity for the three and six months ended June 30, 2024 and 2023:

Reconciliation of the changes in stockholders' equity for the three and nine months ended September 30, 2024 and 2023:

Common Stock Additional

18 unchanged sentences

Balance at June 30, 2024 74,568 $ — $ 532,601 $ ( 18,631 ) $ ( 88,130 ) $ 425,840

Vesting of restricted stock and performance stock units 44 — — — — —

Purchase and retirement of common shares ( 19 ) — ( 87 ) — — ( 87 )

Stock-based compensation — — 2,888 — — 2,888

Net loss — — — — ( 4,507 ) ( 4,507 )

Currency translation adjustments — — — 1,431 — 1,431

Balance at September 30, 2024 74,593 $ — $ 535,402 $ ( 17,200 ) $ ( 92,637 ) $ 425,565

Common Stock Additional

19 unchanged sentences

Balance at June 30, 2023 73,413 $ — $ 523,861 $ ( 14,559 ) $ ( 115,163 ) $ 394,139

Common stock issued upon exercise of options 2 — 10 — — 10

Vesting of restricted stock and performance stock units 99 — — — — —

Purchase and retirement of common shares ( 31 ) — ( 200 ) — — ( 200 )

Stock-based compensation — 2,590 — — 2,590

Net income — — — — 11,159 11,159

Currency translation adjustments — — — ( 2,813 ) — ( 2,813 )

Balance at September 30, 2023 73,483 $ — $ 526,261 $ ( 17,372 ) $ ( 104,004 ) $ 404,885

Commitments and Contingencies

8 unchanged sentences

The Company appealed the grant of summary judgment to the Court of Appeals on June 8, 2023.

The Company is pursuing the appeal with respect to the first patent, with oral argument expected in the second half of 2024.

The Company is pursuing the appeal with respect to the first patent, with oral argument expected in the first quarter of 2025.

Second, the Court denied Spectrum’s motion to supplement its allegations of alleged antitrust violations, finding that if such an amendment were allowed, Spectrum’s claims would not survive a motion for summary judgment.

9 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements