What changed in this filing

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Item 1. Financial Statements

2022-08-08 compared with 2022-05-10 · 142 added, 102 removed, 359 unchanged (40% of the section changed)

3 unchanged sentences

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

March 31, 2022

June 30, 2022

December 31, 2021

1 unchanged sentence

Cash and cash equivalents

Accounts receivable (less allowance for credit losses of $ 248 and $ 419 as of March 31, 2022 and December 31, 2021, respectively)

Accounts receivable (less allowance for credit losses of $ 1,000 and $ 419 as of June 30, 2022 and December 31, 2021, respectively)

Prepaid expenses and other current assets

20 unchanged sentences

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

Authorized— 120,000,000 shares as of June 30, 2022 and December 31, 2021;

issued and outstanding — 36,974,827 and 36,768,035 shares as of June 30, 2022 and December 31, 2021 , respectively

Additional paid-in capital

7 unchanged sentences

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

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Product revenue

13 unchanged sentences

Interest income (expense), net

Other expense, net

Other (expense) income, net

Loss before income taxes

Income tax benefit

Income tax provision (benefit)

Net loss per share, basic and diluted

4 unchanged sentences

(amounts in thousands)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Other comprehensive loss:

Cumulative translation adjustment

Total other comprehensive loss

Total other comprehensive (loss) income

Comprehensive loss

3 unchanged sentences

(amounts in thousands)

Three Months Ended March 31,

Six Months Ended June 30,

Operating activities

6 unchanged sentences

Non-cash interest expense

Loss on disposal of fixed assets

Changes in operating assets and liabilities:

12 unchanged sentences

Proceeds from RADx grant on assets purchased

Net cash (used in) provided by investing activities

Net cash used in investing activities

Financing activities

7 unchanged sentences

Cash, restricted cash, and cash equivalents at end of period

Noncash transactions:

Right-of-use asset obtained in exchange for lease liabilities

Reconciliation of cash, cash equivalents, and restricted cash:

10 unchanged sentences

Total stockholders' equity

Balance at December 31, 2021

Balance at March 31, 2022

Issuance of capital shares:

1 unchanged sentence

−Restricted units converted

− ESPP stock purchase

−Issuance of common stock

1 unchanged sentence

Cumulative translation adjustment

Balance at June 30, 2022

Additional paid-in capital

Accumulated other comprehensive income (loss)

Accumulated deficit

Total stockholders' equity

Balance at March 31, 2021

Issuance of capital shares:

− Exercised stock options

−Restricted units converted

Stock-based compensation expense

Cumulative translation adjustment

Balance at June 30, 2021

Additional paid-in capital

4 unchanged sentences

Issuance of capital shares:

− Exercised stock options

−Restricted units converted

−Issuance of common stock

− ESPP stock purchase

Stock-based compensation expense

Cumulative translation adjustment

Balance at June 30, 2022

Additional paid-in capital

Accumulated other comprehensive income (loss)

Accumulated deficit

Total stockholders' equity

Balance at December 31, 2020

Issuance of capital shares:

− Exercised warrants

2 unchanged sentences

− ESPP stock purchase

−Issuance of common stock

Sale of common stock in underwritten public offering, net

1 unchanged sentence

Cumulative translation adjustment

Balance at March 31, 2021

Balance at June 30, 2021

See accompanying notes

4 unchanged sentences

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 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.

17 unchanged sentences

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

2 unchanged sentences

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.

There have been no material changes in the Company’s significant accounting policies during the six months ended June 30, 2022.

For a discussion of recently issued accounting standards updates, refer to Note 2 in the Company’s Annual Report on Form 10-K filed with the SEC on March 1, 2022.

Revenue recognition

16 unchanged sentences

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).

During the first quarter of 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

calendar quarter during 2022, beginning with the three months ended March 31, 2022.

In connection with the Lilly Collaboration Agreement, the Company received a non-refundable up-front payment of $ 5.0 million

during the first quarter of 2022, and under the Statement of Work receives $ 1.5 million per calendar quarter during 2022, beginning with the first quarter of 2022.

The revenue will be recognized over a one-year period.

5 unchanged sentences

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.

During the three and six months ended June 30, 2022, the Company recognized approximately $ 2.7 million and $ 5.4 million, respectively, of revenue from the Lilly Collaboration Agreement as service revenue.

Collaboration and license revenue

8 unchanged sentences

The following tables disaggregate the Company's revenue from contracts with customers by revenue type (in thousands):

Three Months Ended March 31, 2022

Three Months Ended June 30, 2022

Six Months Ended June 30, 2022

Product revenues

6 unchanged sentences

Collaboration and license revenue

Three Months Ended March 31, 2021

Three Months Ended June 30, 2021

Six Months Ended June 30, 2021

Product revenues

6 unchanged sentences

Collaboration and license revenue

For each of the three and six months ended June 30, 2022, there was one customer that accounted for 18 % of the Company’s total revenue.

The Company’s contracts with customers may include promises to transfer multiple products and services to a customer.

3 unchanged sentences

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.

Company may have more than one range of standalone selling price for certain products and services based on the pricing for different customer classes.

Variable consideration in the Company’s contracts primarily relates to (i) sales- and usage-based royalties related to the license of intellectual property in collaboration and license contracts and (ii) certain non-fixed fee research services contracts.

ASC 606 provides for an exception to estimating the variable consideration for sales- and usage-based royalties related to the license of intellectual property, such that the sales- and usage-based royalty will be recognized in the period the underlying transaction occurs.

The Company recognizes revenue from sales- and usage-based royalty

revenue at the later of when the sale or usage occurs and the satisfaction or partial satisfaction of the performance obligation to which the royalty has been allocated.

The aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied or are partially satisfied as of 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).

Accounting Standard Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606) provides for an exception to estimating the variable consideration for sales- and usage-based royalties related to the license of intellectual property, such that the sales- and usage-based royalty will be recognized in the period the underlying transaction occurs.

The Company recognizes revenue from sales- and usage-based royalty revenue at the later of when the sale or usage occurs and the satisfaction or partial satisfaction of the performance obligation to which the royalty has been allocated.

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

Three Months Ended March 31, 2022

Six Months Ended June 30, 2022

Balance at December 31, 2021

1 unchanged sentence

Recognition of deferred revenue

Balance at March 31, 2022

Balance at June 30, 2022

As of June 30, 2022, of the performance obligations not yet satisfied or partially satisfied, $ 12.2 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 $ 12.2 million at June 30, 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 12).

Costs to obtain a contract

The Company’s sales commissions are generally based on revenues of the Company.

The Company’s sales commissions are generally based on bookings 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

Six Months Ended June 30, 2022

Balance at December 31, 2021

1 unchanged sentence

Recognition of costs to obtain a contract

Balance at March 31, 2022

Balance at June 30, 2022

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.

5 unchanged sentences

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.

None of the Company’s contracts contained a significant financing component as of June 30, 2022 and 2021, respectively.

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

Grant revenue

The Company recognizes grant revenue as 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.

The Company recognizes grant revenue as the Company performs services under the arrangement when the funding is committed.

Revenues and related research and development expenses are presented gross in the consolidated statements of operations as the Company has determined it is the primary obligor under the arrangement relative to the research and development services.

Accounting for grants does not fall under ASC 606, as the grantor will not benefit directly from the Company’s expansion or product development.

As there is no authoritative guidance under U.S.

GAAP on accounting for 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.

GAAP on accounting for grants to for-profit business entities from government entities, the Company has accounted for grants under workplan 2 (WP2) with the National Institute of Health (NIH) under its Rapid Acceleration of Diagnostics (RADx) program by analogy to International Accounting Standards Topic 20, Accounting for Government Grants and Disclosure of Government Assistance (IAS 20).

The Company accounts for grants from the Alzheimer’s Drug Discovery Foundation (ADDF) under ASC Topic 958, Not-for-Profit Entities (ASC 958).

Grants to the Company under WP2 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.

7 unchanged sentences

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.

On September 29, 2020, the Company entered into WP2.

The contract, which had 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 the Company’s Simoa technology.

The contract provided funding to expand assay kit manufacturing capacity and commercial deployment readiness.

1 unchanged sentence

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.

As of June 30, 2022, the Company has received the full $ 18.2 million under WP2.

During the three and six months ended June 30, 2022, the Company recognized no grant revenue and incurred no research and development expense related to WP2.

During the three months ended June 30, 2021, the Company recognized $ 0.9 million in grant revenue and incurred $ 1.8 million in

research and development expense related to WP2.

During the six months ended June 30, 2021, the Company recognized $ 3.2 million in grant revenue and incurred $ 2.9 million in research and development expense related to WP2.

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

March 31, 2022

June 30, 2022

December 31, 2021

9 unchanged sentences

Total WP2 grant amount

Under ASC 958, 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 ASC 958.

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 March 24, 2022, the Company entered into a contract with ADDF (ADDF grant).

ADDF is a charitable venture philanthropy entity that has granted the Company funding in support of certain activities for the development of an in vitro diagnostic (IVD) test for early detection of Alzheimer's disease.

The ADDF grant, which has a total funding value of $ 2.3 million, restricts the Company’s use of the granted funds to be used solely for activities related to the Alzheimer’s diagnostic test development project.

Contract funding is subject to achievement of these pre-defined milestones and the contract period runs through June 2024.

The Company recognizes revenue over time as the related services are performed.

As of June 30, 2022, the Company had received $ 1.3 million out of the full $ 2.3 million under the ADDF grant.

During the three and six months ended June 30, 2022, the Company recognized $ 0.1 million in grant revenue and incurred $ 0.1 million in research and development expense related to the ADDF grant.

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,

Three Months Ended June 30,

Six Months Ended June 30,

Stock options

2 unchanged sentences

Fair value measurements are as follows (in thousands):

March 31, 2022

June 30, 2022

Quoted prices in active markets (Level 1)

10 unchanged sentences

Inventory consists of the following (in thousands):

March 31, 2022

June 30, 2022

December 31, 2021

12 unchanged sentences

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):

The following presents 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

Credit loss gain

Credit loss expense

Write-offs charged against allowances

Balance at March 31, 2022

Balance at June 30, 2022

Other accrued expenses

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

March 31, 2022

June 30, 2022

December 31, 2021

2 unchanged sentences

Professional services

Leasehold improvements

Development costs

3 unchanged sentences

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

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Cost of product revenue

2 unchanged sentences

Selling, general, and administrative

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.

In both the three and six months ended June 30, 2022, the Company incurred approximately $ 0.7 million of stock-based compensation expense related to the transition of the Company’s former Chief Executive Officer to Executive Chairman in accordance with ASC Topic 718, Compensation - Stock Compensation .

As of June 30, 2022, there was $ 46.4 million of total unrecognized compensation cost related to unvested restricted stock units (RSUs) and stock options, which is expected to be recognized over the remaining weighted-average vesting period of 2.9 years.

The Company is a lessee under leases of offices, lab spaces, and certain office equipment.

1 unchanged sentence

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.

4 unchanged sentences

The components of lease expense was as follows (in thousands):

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Operating leases

2 unchanged sentences

Total lease cost

(1) Short-term lease costs and variable lease costs incurred by the Company for the three months ended March 31, 2022 were not material.

(1) Short-term lease costs and variable lease costs incurred by the Company for the three and six months ended June 30, 2022 were not material.

Supplemental balance sheet and cash flow information was as follows (amounts in thousands):

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Supplemental balance sheet information:

3 unchanged sentences

Operating cash flows used for operating leases

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,

Future minimum commitments under the Company’s operating leases in effect as of June 30, 2022 were as follows (in thousands):

Twelve months ending June 30,

Total lease payments

2 unchanged sentences

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

5 unchanged sentences

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.

At both June 30, 2022 and December 31, 2021, the Company had $ 0.5 million of deferred revenue related to ongoing negotiations with a diagnostics company.

Abbott Laboratories

1 unchanged sentence

Pursuant to the terms of the Abbott License Agreement, the Company granted Abbott a non-exclusive, worldwide, royalty-bearing license, without the right to sublicense, under the Company’s bead-based single molecule detection patents (Licensed Patents) in the field of in vitro diagnostics.

Abbott agreed to pay the Company an initial license fee of $ 10.0 million in connection with the execution of the Abbott License Agreement,

which was recognized as license revenue during the 2020 fiscal year.

Abbott agreed to pay the Company an initial license fee of $ 10.0 million in connection with the execution of the Abbott License Agreement, which was recognized as license revenue during the 2020 fiscal year.

Abbott has also agreed to pay the Company milestone fees subject to the achievement by Abbott of certain development, regulatory and commercialization milestones and low single-digit royalties on net sales of licensed products.

3 unchanged sentences

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.

During the three and six months ended June 30, 2022 and 2021, the Company recognized no revenue under the Abbott License Agreement.

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.

Revenue recorded from sales to Harvard University and its affiliates and to Mass General Brigham and its affiliates totaled $ 0.1 million and $ 0.3 million for the three and six months ended June 30, 2022, respectively, and $ 0.2 million for each of the three and six months ended June 30, 2021.

The Company had $ 0.2 million in accounts receivable from Harvard University and its affiliates and Mass General Brigham and its affiliates at both June 30, 2022 and December 31, 2021.

Deferred revenue from Harvard University and its affiliates and Mass General Brigham and its affiliates was $ 0.1 million at both June 30, 2022 and December 31, 2021.

On May 26, 2022, the Company entered into an agreement with UltraDx Limited (UltraDx agreement), a new company formed by ARCH Venture Partners (ARCH).

Pursuant to the UltraDx agreement, the Company will supply HD-X instruments (both fully assembled and disassembled) as well as assays and assay components to UltraDx, and UltraDx has the non-exclusive right to seek Chinese regulatory approval of and to commercialize the HD-X instrument and related assays in the Chinese neurological in vitro diagnostic market.

The Company has determined that UltraDx is a related party because one of the Company’s directors is affiliated with ARCH and UltraDx.

Pursuant to the terms of the UltraDx agreement, the Company shipped a total of ten fully assembled and disassembled HD-X instruments to UltraDx on June 30, 2022 at a purchase price of approximately $ 1.9 million.

Due to the fact that UltraDx was recently formed during the second quarter of 2022, the Company will recognize revenue on these shipments upon receipt of payment.

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.

Collectively, at June 30, 2022 and December 31, 2021, the Company had no accounts receivable and $ 18 thousand in accounts receivable, respectively, from these other related parties.

In addition, the Company had a total of $ 20 thousand and $ 6 thousand in accounts payable at June 30, 2022 and December 31, 2021, respectively, from these other related parties.

In the three and six months ended June 30, 2022, the Company recorded cost of product revenue of $ 11 thousand and $ 20 thousand, respectively, cost of service and other revenue of $ 34 thousand and $ 87 thousand, respectively, research and development of $ 29 thousand and $ 61 thousand, respectively, and selling, general, and administrative of $ 8 thousand and $ 41 thousand, respectively, from these other related parties.

In the three and six months ended June 30, 2021, the Company recorded service revenue of $ 4 thousand and $ 24 thousand, respectively, cost of product revenue of $ 23 thousand and $ 30 thousand, respectively, cost of service and other revenue of $ 34 thousand and $ 51 thousand, respectively, research and development of $ 40 thousand and $ 51 thousand, respectively, and selling, general, and administrative of $ 9 thousand and $ 23 thousand, respectively, in total from these other related parties.

Accumulated Other Comprehensive Loss

2 unchanged sentences

Accumulated Other Comprehensive Income (Loss)

Balance - December 31, 2021

Balance at December 31, 2021

Current period accumulated other comprehensive loss

Balance - March 31, 2022

Balance at June 30, 2022

Cumulative translation adjustment

Accumulated Other Comprehensive Income (Loss)

Balance - December 31, 2020

Accumulated Other Comprehensive Income

Balance at December 31, 2020

Current period accumulated other comprehensive loss

Balance - March 31, 2021

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.

Balance at June 30, 2021

Subsequent Events

Following a strategic review and assessment of the Company’s operations, cost structure and growth opportunities, on August 8, 2022, the Company announced a plan of restructuring and strategic re-alignment, which includes the elimination of approximately 130 positions across the Company and other cost-saving measures (the Restructuring).

The Company expects to substantially complete the workforce reduction by the end of the third quarter of 2022.

The Company expects to record a charge in the range of $ 7 million to $ 10 million in the third quarter of 2022 as a result of the workforce reduction, consisting of one-time termination benefits for employee severance, benefits and related costs, all of which are expected to result in cash expenditures and substantially all of which will be paid out over the next five months.

The Company may also implement other cost savings measures as part of the Restructuring and may incur termination and other costs in connection with such measures, which could be material.

As part of the Restructuring, the Company is also reviewing its alternatives with respect to additional facility space that it currently leases in Bedford, Massachusetts (see Note 10).

These alternatives may include the termination of the lease or the sub-lease of all or a portion of the leased facility.

The Company is currently unable to estimate facility-related charges, which could be material.

On August 7, 2022, E.

Kevin Hrusovsky, Executive Chairman of Quanterix (the Company), entered into a separation agreement and release with the Company, effective as of August 8, 2022, pursuant to which his employment as Executive Chairman of the Company’s Board of Directors (the Board) has ended and he has resigned as a Director on the Board, both effective August 8, 2022.

In connection with his resignation, Mr.

Hrusovsky will receive severance benefits consistent with the provisions of his employment agreement with the Company, dated as of April 25, 2022.

The Company’s current Lead Independent Director, Martin D.

Madaus, Ph.D., has been elected to succeed Mr.

Hrusovsky as Chairman of the Board, effective as of August 8, 2022.

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