Quanterix Corp 10-Q

Item 1. Financial Statements (Unaudited) Quanterix Corporation Condensed Consolidated Balance Sheet s (amounts in thousands, except share and per share data) ​ ​ ​ ​ ​ ​ ​ March 31, 2022 December 31, 2021 Assets ​ ​ ​ ​ ​ Current assets: ​ ​ ​ Cash and cash equivalents $ 374,317 ​ $ 396,465 Accounts receivable (less allowance for credit losses of $ 248 and $ 419 as of March 31, 2022 and December 31, 2021, respectively) 22,616 ​ 23,786 Inventory 22,669 ​ 22,190 Prepaid expenses and other current assets 14,104 ​ 6,514 Total current assets ​ 433,706 ​ 448,955 Restricted cash 2,577 ​ 2,577 Property and equipment, net 19,683 ​ 17,960 Intangible assets, net 9,692 ​ 10,534 Goodwill 9,323 ​ 9,632 Right-of-use assets ​ 29,298 ​ ​ 11,491 Other non-current assets 378 ​ 378 Total assets $ 504,657 ​ $ 501,527 Liabilities and stockholders’ equity ​ Current liabilities: ​ Accounts payable $ 4,262 ​ $ 9,209 Accrued compensation and benefits 8,139 ​ 13,252 Other accrued expenses 8,024 ​ 6,486 Deferred revenue 9,194 ​ 6,361 Short term lease liabilities ​ 1,886 ​ ​ 1,428 Other current liabilities ​ 268 ​ ​ 241 Total current liabilities 31,773 ​ 36,977 Deferred revenue, net of current portion 1,222 ​ 1,099 Long term lease liabilities ​ 43,563 ​ ​ 20,464 Other non-current liabilities 1,691 ​ 2,035 Commitments and contingencies (Note 11) ​ ​ ​ ​ ​ Stockholders’ equity: ​ Common stock, $ 0.001 par value: ​ ​ ​ Authorized— 120,000,000 shares as of March 31, 2022 and December 31, 2021; issued and outstanding — 36,899,156 and 36,768,035 shares as of March 31, 2022 and December 31, 2021 , respectively 37 ​ 37 Additional paid-in capital 750,742 ​ 745,936 Accumulated other comprehensive (loss) income ​ ( 756 ) ​ ​ 441 Accumulated deficit ( 323,615 ) ​ ( 305,462 ) Total stockholders’ equity 426,408 ​ 440,952 Total liabilities and stockholders’ equity $ 504,657 ​ $ 501,527 ​ ​ See accompanying notes ​ 4 Table of Contents Quanterix Corporation Condensed Consolidated Statements of Operations (amounts in thousands, except share and per share data) ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2022 2021 Product revenue $ 20,656 ​ $ 18,248 Service and other revenue 8,810 ​ 6,409 Collaboration revenue 86 ​ 261 Grant revenue ​ — ​ ​ 2,291 Total revenue 29,552 ​ 27,209 Costs of goods sold: ​ Cost of product revenue 10,746 ​ 7,480 Cost of service and other revenue 4,247 ​ 3,380 Total costs of goods sold and services 14,993 ​ 10,860 Gross profit ​ 14,559 ​ ​ 16,349 Operating expenses: ​ Research and development 7,034 ​ 6,683 Selling, general and administrative 25,712 ​ 19,455 Total operating expenses 32,746 ​ 26,138 Loss from operations ( 18,187 ) ​ ( 9,789 ) Interest income (expense), net 52 ​ ( 163 ) Other expense, net ( 217 ) ​ ( 194 ) Loss before income taxes ​ ( 18,352 ) ​ ​ ( 10,146 ) Income tax benefit ​ 199 ​ ​ 42 Net loss $ ( 18,153 ) ​ $ ( 10,104 ) Net loss per share, basic and diluted $ ( 0.49 ) ​ $ ( 0.29 ) Weighted-average common shares outstanding, basic and diluted 36,850,894 ​ 34,434,931 ​ ​ See accompanying notes ​ 5 Table of Contents Quanterix Corporation Condensed Consolidated Statements of Comprehensive Loss (amounts in thousands) ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2022 2021 Net loss $ ( 18,153 ) ​ $ ( 10,104 ) Other comprehensive loss: ​ ​ ​ ​ ​ Cumulative translation adjustment ​ ( 1,197 ) ​ ​ ( 1,251 ) Total other comprehensive loss ​ ( 1,197 ) ​ ​ ( 1,251 ) Comprehensive loss $ ( 19,350 ) ​ $ ( 11,355 ) ​ ​ ​ ​ ​ ​ See accompanying notes ​ ​ ​ 6 Table of Contents ​ Quanterix Corporation Condensed Consolidated Statements of Cash Flows (amounts in thousands) ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2022 2021 Operating activities ​ Net loss $ ( 18,153 ) ​ $ ( 10,104 ) Adjustments to reconcile net loss to net cash used in operating activities: ​ ​ Depreciation and amortization expense 1,358 ​ 1,151 Inventory step-up amortization ​ — ​ ​ 164 Credit loss expense on accounts receivable ​ ( 171 ) ​ ​ 20 Reduction in the carrying amount of right-of-use assets ​ 348 ​ ​ 128 Stock-based compensation expense 3,827 ​ 3,386 Non-cash interest expense — ​ 22 Changes in operating assets and liabilities: ​ ​ ​ Accounts receivable 1,319 ​ 2,227 Prepaid expenses and other assets ( 2,070 ) ​ ( 1,744 ) Inventory ( 484 ) ​ ( 2,327 ) Other non-current assets 1 ​ ( 16 ) Accounts payable ( 5,306 ) ​ ( 2,109 ) Accrued compensation and benefits, other accrued expenses and other current liabilities ( 4,921 ) ​ ( 5,598 ) Contract acquisition costs ​ ( 41 ) ​ ​ ( 72 ) Operating lease liabilities ​ ( 87 ) ​ ​ ( 307 ) Other non-current liabilities ​ ( 271 ) ​ ​ ( 107 ) Deferred revenue 2,956 ​ 1,197 Net cash used in operating activities ​ ( 21,695 ) ​ ​ ( 14,089 ) Investing activities ​ Purchases of property and equipment ( 1,394 ) ​ ( 79 ) Proceeds from RADx grant on assets purchased ​ 520 ​ ​ 2,514 Net cash (used in) provided by investing activities ​ ( 874 ) ​ ​ 2,435 Financing activities ​ Proceeds from stock options exercised 385 ​ 3,076 Sale of common stock in underwritten public offering, net ​ — ​ ​ 269,718 Proceeds from ESPP purchase 594 ​ 519 Net cash provided by financing activities ​ 979 ​ ​ 273,313 Net (decrease) increase in cash, cash equivalents and restricted cash ( 21,590 ) ​ 261,659 Effect of foreign currency exchange rate on cash ​ ( 558 ) ​ ​ ( 171 ) Cash, restricted cash, and cash equivalents at beginning of period 399,042 ​ 182,584 Cash, restricted cash, and cash equivalents at end of period $ 376,894 ​ $ 444,072 Noncash transactions: ​ Right-of-use asset obtained in exchange for lease liabilities $ 18,156 ​ $ — Reconciliation of cash, cash equivalents, and restricted cash: ​ ​ ​ ​ ​ Cash and cash equivalents $ 374,317 ​ $ 442,672 Restricted cash ​ 2,577 ​ ​ 1,400 Total cash, cash equivalents, and restricted cash $ 376,894 ​ $ 444,072 ​ See accompanying note s ​ ​ ​ ​ ​ ​ 7 Table of Contents Quanterix Corporation Condensed Consolidated Statements of Stockholders’ Equity (amounts in thousands, except share data) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares Value ​ Additional paid-in capital ​ Accumulated other comprehensive income (loss) ​ Accumulated deficit ​ Total stockholders' equity Balance at December 31, 2021 36,768,035 ​ $ 37 ​ $ 745,936 ​ $ 441 ​ $ ( 305,462 ) $ 440,952 Issuance of capital shares: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ − Exercised stock options 60,126 ​ ​ — ​ ​ 385 ​ ​ ​ ​ ​ ​ ​ 385 −Restricted units converted 49,208 ​ ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ — − ESPP stock purchase 20,449 ​ ​ — ​ ​ 594 ​ ​ ​ ​ ​ ​ ​ 594 −Issuance of common stock 1,338 ​ ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ — Stock-based compensation expense ​ ​ ​ ​ ​ ​ 3,827 ​ ​ ​ ​ ​ ​ ​ ​ 3,827 Cumulative translation adjustment ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 1,197 ) ​ ​ ​ ​ ​ ( 1,197 ) Net loss ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 18,153 ) ​ ​ ( 18,153 ) Balance at March 31, 2022 36,899,156 $ 37 $ 750,742 $ ( 756 ) ​ $ ( 323,615 ) $ 426,408 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares Value ​ Additional paid-in capital ​ Accumulated other comprehensive income (loss) ​ Accumulated deficit ​ Total stockholders' equity Balance at December 31, 2020 31,796,544 ​ $ 32 ​ $ 451,433 ​ $ 2,434 ​ $ ( 247,774 ) $ 206,125 Issuance of capital shares: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ − Exercised warrants 7,347 ​ ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ — − Exercised stock options 281,324 ​ ​ — ​ ​ 3,076 ​ ​ ​ ​ ​ ​ ​ 3,076 −Restricted units converted 84,159 ​ ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ — − ESPP stock purchase 17,225 ​ ​ — ​ ​ 519 ​ ​ ​ ​ ​ ​ ​ 519 −Issuance of common stock 1,187 ​ ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ — Sale of common stock in underwritten public offering, net 4,107,142 ​ ​ 4 ​ ​ 269,714 ​ ​ ​ ​ ​ ​ ​ ​ 269,718 Stock-based compensation expense ​ ​ ​ ​ ​ ​ 3,386 ​ ​ ​ ​ ​ ​ ​ ​ 3,386 Cumulative translation adjustment ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 1,251 ) ​ ​ ​ ​ ​ ( 1,251 ) Net loss ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 10,104 ) ​ ​ ( 10,104 ) Balance at March 31, 2021 36,294,928 $ 36 $ 728,128 $ 1,183 ​ $ ( 257,878 ) $ 471,469 ​ See accompanying notes ​ 8 Table of Contents Quanterix Corporation Notes to condensed consolidated financial statements ​ 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. 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 (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. In the fourth quarter of 2017, the Company launched a second bead-based immunoassay platform (SR-X) with a more compact footprint than the 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 HD-1 and phased out 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. ​ 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 and have been prepared 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, 2021 filed with the SEC on March 1, 2022 (the 2021 Annual Report on Form 10-K). ​ Reclassifications Certain amounts in the prior years’ consolidated financial statements have been reclassified to conform to the current year’s presentation. ​ ​ 9 Table of Contents 2. Significant accounting policies The significant accounting policies and estimates used in the preparation of the accompanying consolidated financial statements are described in the Company’s audited consolidated financial statements for the year ended December 31, 2021, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 1, 2022. There have been no material changes in the Company’s significant accounting policies during the three months ended March 31, 2022. ​ 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. For contract research services recognized over time, the Company uses the output method to measure the progress toward the complete satisfaction of the performance obligations. Revenues from other services are immaterial. During the three months ended March 31, 2022, the Company entered into a Master Collaboration Agreement with Eli Lilly and Company (Lilly) establishing a framework for future projects focused on the development of Simoa immunoassays (the Lilly Collaboration Agreement). The Company also entered into a Statement of Work under the Lilly Collaboration Agreement to perform assay research and development services within the field of Alzheimer’s disease. In connection with the Lilly Collaboration Agreement, the Company received a non-refundable up-front payment of $ 5.0 million during the three months ended March 31, 2022, and under the Statement of Work receives $ 1.5 million per 10 Table of Contents calendar quarter during 2022, beginning with the three months ended March 31, 2022. The revenue will be recognized over a one-year period. ​ Concurrent with the execution of the Lilly Collaboration Agreement, the Company entered into a Technology License Agreement (the Lilly License) under which Lilly granted to the Company a non-exclusive license to Lilly’s proprietary P-tau217 antibody technology for potential near-term use in research use only products and services and future in vitro diagnostics applications within the field of Alzheimer’s disease. In consideration of the license, the Company paid an upfront fee, is required to make milestone payments based on the achievement of predetermined regulatory and commercial events, and will pay a royalty on net sales of licensed products. ​ The Company concluded that the Lilly Collaboration Agreement (including the Statement of Work) and the Lilly License represented a single contract with a customer and is accounting for the agreements as service revenue recognized over time as the services are delivered. The transaction price for the Lilly Collaboration Agreement is $ 10.9 million. Contingent amounts due to Lilly represent variable consideration payable to a customer and will be recognized as reductions to service revenue up to the amount of the transaction price recognized, when probable. The Company is utilizing an input method to measure the delivery of services by calculating costs incurred at each period end relative to total costs expected to be incurred. ​ During the three months ended March 31, 2022, the Company recognized approximately $ 2.7 million of revenue from the Lilly Collaboration Agreement as service revenue. 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. 11 Table of Contents 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 March 31, 2022 ​ NA EMEA Asia Pacific Total Product revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Instruments $ 2,165 ​ $ 2,046 ​ $ 2,011 ​ $ 6,222 Consumable and other products ​ 8,833 ​ ​ 4,426 ​ ​ 1,175 ​ ​ 14,434 Total $ 10,998 $ 6,472 $ 3,186 $ 20,656 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Service and other revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Service-type warranties $ 1,283 ​ $ 659 ​ $ 92 ​ $ 2,034 Research services ​ 6,096 ​ ​ 131 ​ ​ 13 ​ 6,240 Other services ​ 284 ​ ​ 211 ​ ​ 41 ​ ​ 536 Total $ 7,663 ​ $ 1,001 ​ $ 146 ​ $ 8,810 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Collaboration and license revenue ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Collaboration and license revenue $ — ​ $ 34 ​ $ 52 ​ $ 86 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2021 ​ NA EMEA Asia Pacific Total Product revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Instruments $ 3,756 $ 2,833 $ 372 $ 6,961 Consumable and other products ​ 6,911 ​ 3,493 ​ 883 ​ 11,287 Total $ 10,667 $ 6,326 $ 1,255 $ 18,248 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Service and other revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Service-type warranties $ 971 $ 438 $ 62 $ 1,471 Research services ​ 3,558 ​ 728 ​ 12 ​ 4,298 Other services ​ 456 ​ 184 ​ — ​ 640 Total $ 4,985 ​ $ 1,350 ​ $ 74 ​ $ 6,409 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Collaboration and license revenue ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Collaboration and license revenue $ 187 ​ $ 74 ​ $ — ​ $ 261 ​ ​ 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 12 Table of Contents 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 March 31, 2022 and 2021 and December 31, 2021 is $ 10.4 million and $ 7.5 million, respectively. As of March 31, 2022, of the performance obligations not yet satisfied or partially satisfied, $ 9.2 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 $ 9.2 million at March 31, 2022 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): ​ ​ ​ ​ ​ Three Months Ended March 31, 2022 Balance at December 31, 2021 $ 7,460 Deferral of revenue 5,000 Recognition of deferred revenue ( 2,044 ) Balance at March 31, 2022 $ 10,416 ​ 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): ​ ​ ​ ​ ​ Three Months Ended March 31, 2022 Balance at December 31, 2021 $ 440 Deferral of costs to obtain a contract 363 Recognition of costs to obtain a contract ( 321 ) Balance at March 31, 2022 $ 482 ​ 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 March 31, 2022 and 2021, respectively. 13 Table of Contents 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 the Company perform 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 we have determined we are 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 grants to for-profit business entities, the Company has accounted for grants by analogy to 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 September 29, 2020, the Company entered into workplan 2 (WP2) with the NIH under its RADx program. The contract, which has a total award value of $ 18.2 million, accelerated the continued development, scale-up, and deployment of the novel SARS-CoV-2 antigen detection test using our Simoa technology. The contract provided funding to expand assay kit manufacturing capacity and commercial deployment readiness. Release of the $ 18.2 million of funding under WP2 was based on the achievement of certain milestones. Contract funding was subject to achievement of these pre-defined milestones and the contract period ran through September 2021, with one milestone extended to May 31, 2022. As of March 31, 2022, the Company had received $ 17.7 million out of the full $ 18.2 million under WP2. During the three months ended March 31, 2022, the Company recognized no grant revenue and incurred no research and development expense related to WP2. During the three months ended March 31, 2021, the Company recognized $ 2.3 million in grant revenue and incurred $ 1.8 million in research and development expense related to WP2. In May 2022, the Company received the final $ 0.5 million under WP2. 14 Table of Contents The following table summarizes the cumulative activity under WP2 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 December 31, 2021 ​ ​ ​ ​ ​ ​ Grant revenue from research and development activities $ 9,576 ​ $ 9,576 Proceeds used for assets ​ 8,624 ​ ​ 8,104 Deferred proceeds for assets ​ — ​ ​ — Deferred grant revenue ​ — ​ ​ — Total recognized $ 18,200 ​ $ 17,680 ​ ​ ​ ​ ​ ​ Recognized $ 18,200 ​ $ 17,680 Amount accrued ​ ( 520 ) ​ ​ — Total cash received $ 17,680 ​ $ 17,680 ​ ​ ​ ​ ​ ​ Proceeds received $ 17,680 ​ $ 17,680 Proceeds reasonably assured ​ 520 ​ ​ 520 Total WP2 grant amount $ 18,200 ​ $ 18,200 ​ ​ ​ 4. Net loss per share The following common share equivalents have been excluded from the calculation of diluted net loss per share as their effect would be anti-dilutive: ​ ​ ​ ​ ​ ​ As of March 31, ​ 2022 2021 Stock options 2,185,706 2,428,268 Unvested restricted stock and stock units 587,939 563,810 ​ 5. Fair value of financial instruments Fair value measurements are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 Total Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Financial assets ​ ​ ​ ​ ​ Cash equivalents - money market funds $ 332,112 $ 332,112 ​ $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2021 Total Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Financial assets ​ ​ ​ ​ ​ Cash equivalents - money market funds $ 332,093 $ 332,093 ​ $ — $ — ​ 15 Table of Contents 6. Inventory Inventory consists of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 December 31, 2021 Raw materials $ 9,199 ​ $ 7,892 ​ Work in process 4,068 ​ 4,923 ​ Finished goods 9,402 ​ 9,375 ​ Total net inventory $ 22,669 ​ $ 22,190 ​ ​ 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 customers’ 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. The following table provides a roll-forward of the allowance for credit losses 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, 2022 ​ $ 419 Credit loss gain ​ ​ ( 171 ) Write-offs charged against allowances ​ ​ — Balance at March 31, 2022 ​ $ 248 ​ ​ 8. Other accrued expenses ​ Other accrued expenses consist of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ March 31, 2022 December 31, 2021 Inventory purchases $ 558 ​ $ 568 Property and equipment purchases ​ 202 ​ ​ 229 Royalties 1,096 ​ 1,250 Professional services 1,861 ​ 2,126 Leasehold improvements ​ 1,081 ​ ​ — Development costs 977 ​ 566 Tax liabilities ​ 806 ​ ​ 430 Other 1,443 ​ 1,317 Total accrued expenses $ 8,024 ​ $ 6,486 ​ ​ 16 Table of Contents 9. Stock-based compensation Stock-based compensation expense for all stock awards consists of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2022 2021 Cost of product revenue $ 88 ​ $ 90 Cost of service and other revenue 166 ​ 110 Research and development 398 ​ 399 Selling, general, and administrative 3,175 ​ 2,787 Total $ 3,827 ​ $ 3,386 ​ As of March 31, 2022, there was $ 42.8 million of total unrecognized compensation cost related to unvested RSUs and stock options, which is expected to be recognized over the remaining weighted-average vesting period of 2.9 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. On January 28, 2022, the Company executed a lease for 85,800 square feet of office and laboratory space in Bedford, Massachusetts. The office space covered by this lease will serve as our principal office and headquarters once construction is completed in the third quarter of 2022. The lease commencement date was February 1, 2022, when the Company gained access to the underlying facilities. The Company has negotiated a tenant improvement allowance with the landlord which will offset a portion of the Company’s construction costs. The Company has assessed whether improvements made to the premises are landlord-owned or company-owned, with payments made by the Company for landlord-owned assets accounted for as lease incentives. The initial term of the lease’s payment schedule is eight years and nine months beginning on May 1, 2022. The Company has the option to extend the lease for two additional five-year periods. ​ The components of lease expense was as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, Operating leases ​ 2022 ​ 2021 Lease costs (1) ​ ​ ​ ​ ​ ​ Operating lease costs ​ $ 663 ​ $ 671 Total lease cost ​ $ 663 ​ $ 671 ​ ​ ​ ​ ​ ​ ​ (1) Short-term lease costs and variable lease costs incurred by the Company for the three months ended March 31, 2022 were not material. ​ Supplemental balance sheet and cash flow information was as follows (amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ ​ 2022 ​ 2021 ​ Supplemental balance sheet information: ​ ​ ​ ​ ​ ​ ​ Weighted average remaining lease term ​ ​ 8.7 years ​ 9.6 years Weighted average discount rate ​ ​ 7.4 % ​ ​ 9.7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ Supplemental cash flow information: ​ ​ ​ ​ ​ ​ ​ Operating cash flows used for operating leases ​ $ 862 ​ $ 846 ​ ​ 17 Table of Contents Future minimum commitments under the Company’s operating leases in effect as of March 31, 2022 were as follows (in thousands): ​ ​ ​ ​ ​ Twelve months ending March 31, ​ ​ 2023 ​ $ 4,569 2024 ​ ​ 6,814 2025 ​ ​ 6,987 2026 ​ ​ 7,208 2027 ​ ​ 7,437 Thereafter ​ ​ 29,634 Total lease payments ​ ​ 62,649 Less: imputed interest ​ ​ 17,200 Total operating lease liabilities ​ $ 45,449 ​ ​ ​ ​ ​ 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 low single digit royalties on direct sales and services and a royalty on sublicense income, as well as an annual maintenance fee that is credited against royalties payable. During the three months ended March 31, 2022 and 2021, the Company recorded royalty expense of $ 0.3 million and $ 0.5 million, respectively, in cost of product revenue on the consolidated statements of operations . 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. 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 $ 0.3 million for three months ended March 31, 2022 and 2021, respectively, associated with these licenses. ​ At both March 31, 2022 and December 31, 2021, 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, 18 Table of Contents 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 months ended March 31, 2022 and 2021, the Company recognized no revenue under the Abbott License Agreement. ​ ​ ​ ​ 13. Related party transactions ​ The Company entered into the License Agreement for certain intellectual property with Tufts (see Note 11). Tufts’ equity ownership in the Company makes Tufts a related party. A member of our Board of Directors was previously affiliated with Tufts and continues to receive compensation from Tufts on a formulaic basis on royalties and license payments the Company makes to Tufts. During the three months ended March 31, 2022 and 2021, the Company recorded royalty expense of $ 0.3 million and $ 0.5 million in cost of product revenue on the consolidated statements of operations, respectively. ​ One of the Company’s Directors is affiliated with Harvard University, the Wyss Institute at Harvard and Mass General Brigham. Revenue recorded from sales to Harvard University and its affiliates and to Mass General Brigham and its affiliates totaled $ 0.2 million and less than $ 0.1 million for the three months ended March 31, 2022 and 2021, respectively. The Company had $ 0.1 million and $ 0.2 million in accounts receivable from Harvard University and its affiliates and Mass General Brigham and its affiliates at March 31, 2022 and December 31, 2021, respectively. Deferred revenue from Harvard University and its affiliates and Mass General Brigham and its affiliates was $ 0 and $ 0.1 million at March 31, 2022 and December 31, 2021, respectively. ​ Amounts from other related party relationships are immaterial. Collectively, the Company had $ 18 thousand in accounts receivable at December 31, 2021 from these other related parties. In addition, the Company had a total of $ 57 thousand and $ 6 thousand in accounts payable at March 31, 2022 and December 31, 2021, respectively, from these other related parties. The Company had a total of $ 4 thousand in other accrued expenses at March 31, 2022 from these related parties. In the three months ended March 31, 2022, the Company recorded cost of product revenue of $ 9 thousand, cost of service and other revenue of $ 52 thousand, research and development of $ 41 thousand and selling, general, and administrative of $ 33 thousand, collectively from these other related parties. In the three months ended March 31, 2021, the Company recorded service revenue of $ 20 thousand, cost of product revenue of $ 7 thousand, cost of service and other revenue of $ 17 thousand, research and development of $ 6 thousand and selling, general, and administrative of $ 14 thousand, in total from these other related parties. ​ 19 Table of Contents 14. Accumulated other comprehensive loss The following shows the changes in the components of accumulated other comprehensive loss (in thousands): ​ ​ ​ ​ ​ ​ ​ Cumulative translation adjustment ​ Accumulated Other Comprehensive Income (Loss) Balance - December 31, 2021 $ 441 ​ $ 441 Current period accumulated other comprehensive loss ​ ( 1,197 ) ​ ​ ( 1,197 ) Balance - March 31, 2022 $ ( 756 ) ​ $ ( 756 ) ​ ​ ​ ​ ​ ​ ​ Cumulative translation adjustment ​ Accumulated Other Comprehensive Income (Loss) Balance - December 31, 2020 $ 2,434 ​ $ 2,434 Current period accumulated other comprehensive loss ​ ( 1,251 ) ​ ​ ( 1,251 ) Balance - March 31, 2021 $ 1,183 ​ $ 1,183 ​ 15. Subsequent Event During the first quarter of 2022, the Company implemented an executive leadership succession plan designed to leverage the Company’s strong foundation for growth. In connection with this plan, E. Kevin Hrusovsky has transitioned from his role as Chief Executive Officer and was appointed Executive Chairman of the Company’s Board of Directors (the “Board”), effective April 25, 2022. Effective April 25, 2022, Masoud Toloue, Ph.D., President of Quanterix and Diagnostics, was appointed Chief Executive Officer of the Company. Effective April 25, 2022, Dr. Toloue was also appointed to serve on the Company’s Board as a Class II director, with a term ending at the 2022 annual meeting of stockholders and will continue to serve as the Company’s President. ​ ​ ​ 20 Table of Contents ​