What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-11-07 compared with 2025-08-08 · 110 added, 103 removed, 158 unchanged (57% of the section changed)

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We typically recognize revenue when products are shipped.

We generated revenue of $10.3 million during the three months ended June 30, 2025, which represents an increase of $0.7 million compared to revenue of $9.6 million during the three months ended June 30, 2024.

For the three months ended June 30, 2025 and 2024, only 5.0% and 4.0%, respectively, of our revenue was generated from customers located outside of the United States.

We generated revenue of $20.1 million during the six months ended June 30, 2025, which represents an increase of $1.2 million compared to revenue of $18.9 million during the six months ended June 30, 2024.

For the six months ended June 30, 2025 and 2024, only 5.1% and 4.3%, respectively, of our revenue was generated from customers located outside of the United States.

We generated revenue of $10.5 million during the three months ended September 30, 2025, which represents an increase of $0.9 million compared to revenue of $9.6 million during the three months ended September 30, 2024.

For the three months ended September 30, 2025 and 2024, only 5.9% and 5.4%, respectively, of our revenue was generated from customers located outside of the United States.

We generated revenue of $30.5 million during the nine months ended September 30, 2025, which represents an increase of $2.1 million compared to revenue of $28.5 million during the nine months ended September 30, 2024.

For the nine months ended September 30, 2025 and 2024, only 5.4% and 4.7%, respectively, of our revenue was generated from customers located outside of the United States.

Our sales outside of the United States are denominated in U.S.

We had an operating loss of $3.4 million during the three months ended June 30, 2025, compared to an operating loss of $5.1 million during the three months ended June 30, 2024.

We had an operating loss of $8.4 million during the six months ended June 30, 2025, compared to an operating loss of $13.1 million during the six months ended June 30, 2024.

We had an operating loss of $4.0 million during the three months ended September 30, 2025, compared to an operating loss of $7.4 million during the three months ended September 30, 2024.

We had an operating loss of $12.4 million during the nine months ended September 30, 2025, compared to an operating loss of $20.5 million during the nine months ended September 30, 2024.

While our expenses may fluctuate over the short term, we expect our expenses will increase in future periods, in connection with our ongoing activities as we:

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Federal Reserve raised interest rates in response to concerns about inflation, and although the U.S.

Federal Reserve lowered interest rates in late 2024, the direction and timing of future interest rate changes remains uncertain.

Inflation, together with increased interest rates, may cause our customers to reduce, delay, or cancel orders for our goods and services, thereby causing a decrease in or change in timing of sales of our products and services.

Federal Reserve lowered interest rates in late 2024 and in September 2025, the direction and timing of future interest rate changes remain uncertain.

Inflation, together with increased interest rates, and broader macroeconomic uncertainty, may cause our customers to reduce, delay, or cancel orders for our goods and services, thereby causing a decrease in or change in the timing of sales of our products and services.

We cannot predict the impact of future inflation and interest rate changes on the results of our operations.

Furthermore, changes to tariff and related international trade policy in the first half of 2025 create uncertainty about the broader economy and our business.

Furthermore, changes to tariff and related international trade policy so far in 2025 create uncertainty about the broader economy and our business.

For further information regarding the impact of these economic factors on the Company, please see the risk factors identified in Part I, Item 1A, Risk Factors, of our 2024 Annual Report on Form 10-K.

Results of Operations

Comparison of the Three Months Ended June 30, 2025, and Three Months Ended June 30, 2024

The following tables set forth our results of operations for the three months ended June 30, 2025 and 2024 (dollars in thousands):

For the Three Months Ended June 30,

Comparison of the Three Months Ended September 30, 2025, and Three Months Ended September 30, 2024

The following tables set forth our results of operations for the three months ended September 30, 2025 and 2024 (dollars in thousands):

For the Three Months Ended September 30,

Cost of sales

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Loss from operations

Other income (expenses), net

Other expenses, net

Interest expense, net

Total other income (expenses), net

Total other expenses, net

Loss before income taxes

Provision for (benefit from) income taxes

Our revenue disaggregated by product category for the three months ended June 30, 2025 and 2024, was as follows (dollars in thousands):

For the Three Months Ended June 30,

Our revenue disaggregated by product category for the three months ended September 30, 2025 and 2024, was as follows (dollars in thousands):

For the Three Months Ended September 30,

Lab Essentials

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Total revenue

Total revenue was $10.3 million and $9.6 million for the three months ended June 30, 2025 and 2024, respectively.

Lab Essentials revenue was $7.8 million for the three months ended June 30, 2025, an increase of $0.2 million, or 2.0%, compared to $7.6 million for the three months ended June 30, 2024.

The increase in Lab Essentials revenue was attributable to an increased number of customers, partially offset by slightly lower average revenue per customer.

Clinical Solutions revenue was $2.1 million for the three months ended June 30, 2025, an increase of $0 .5 million, or 31 .6 %, compared to $1.6 million for the three months ended June 30, 2024.

The increase in Clinical Solutions revenue was attributable to an increased number of customers, partially offset by lower average revenue per customer.

Our revenue disaggregated by geographic region, for the three months ended June 30, 2025 and 2024, was as follows (dollars in thousands):

For the Three Months Ended June 30,

Total revenue was $10.5 million and $9.6 million for the three months ended September 30, 2025 and 2024, respectively.

Lab Essentials revenue was $8.3 million for the three months ended September 30, 2025, an increase of $1.1 million, or 16.0%, compared to $7.2 million for the three months ended September 30, 2024.

The increase in Lab Essentials revenue was attributable to higher average revenue per customer and, to a slightly lesser extent, an increased number of customers.

Clinical Solutions revenue was $1.7 million for the three months ended September 30, 2025, a decrease of $0 .3 million, or 13 .1 %, compared to $2.0 million for the three months ended September 30, 2024.

The decrease in Clinical Solutions revenue was attributable to lower average revenue per customer, partially offset by an increased number of customers.

Our revenue disaggregated by geographic region, for the three months ended September 30, 2025 and 2024, was as follows (dollars in thousands):

For the Three Months Ended September 30,

United States

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Revenue from U.S.

sales was $9.8 million and $9.2 million for the three months ended June 30, 2025 and 2024, respectively.

sales was $9.8 million and $9.1 million for the three months ended September 30, 2025 and 2024, respectively.

Revenue from U.S.

sales as a percentage of our total revenue was consistent period over period, representing 95.0% and 96.0% of our total revenue during the three months ended June 30, 2025 and 2024, respectively.

Revenue from international sales was $0.5 million and $0.4 million for the three months ended June 30, 2025 and 2024, respectively.

Revenue from international sales as a percentage of our total revenue was also consistent period over period, representing 5.0% and 4.0% of our total revenue during the three months ended June 30, 2025 and 2024, respectively.

Our gross profit for the three months ended June 30, 2025 and 2024, was as follows (dollars in thousands):

For the Three Months Ended June 30,

sales as a percentage of our total revenue was consistent period over period, representing 94.1% and 94.6% of our total revenue during the three months ended September 30, 2025 and 2024, respectively.

Revenue from international sales was $0.6 million and $0.5 million for the three months ended September 30, 2025 and 2024, respectively.

Revenue from international sales as a percentage of our total revenue was also consistent period over period, representing 5.9% and 5.4% of our total revenue during the three months ended September 30, 2025 and 2024, respectively.

Our gross profit for the three months ended September 30, 2025 and 2024, was as follows (dollars in thousands):

For the Three Months Ended September 30,

Cost of sales

Gross profit %

Gross profit percentage was 38.7% and 29.2% for the three months ended June 30, 2025 and 2024, respectively.

The increase in gross profit was driven by manufacturing efficiency gains and higher revenue.

Gross profit percentage was 30.7% and 0.9% for the three months ended September 30, 2025 and 2024, respectively.

The increase was primarily driven by $2.8 million of non-recurring and non-cash charges during the three months ended September 30, 2024 related to the disposal of expired inventory and write down of excess inventory.

Excluding those non-recurring and non-cash charges, gross profit would have been $2.9 million and gross profit percentage would have been 29.8%, respectively, in the three months ended September 30, 2024.

The improvement in gross profit percentage from 29.8% to 30.7% was driven primarily by higher revenue.

Operating expenses

Our operating expenses for the three months ended June 30, 2025 and 2024, were as follows (dollars in thousands):

For the Three Months Ended June 30,

Our operating expenses for the three months ended September 30, 2025 and 2024, were as follows (dollars in thousands):

For the Three Months Ended September 30,

Research and development

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Total operating expenses

Research and development expenses were consistent at $0.6 million and $0.7 million for the three months ended June 30, 2025 and 2024, respectively.

Sales and marketing expenses were consistent at $1.6 million and $1.5 million for the three months ended June 30, 2025 and 2024, respectively.

General and administrative expenses were $4.9 million and $5.5 million for the three months ended June 30, 2025 and 2024, respectively.

Excluding the one-time, non-recurring charge of $0.1 million related to the increase of our loss contingency for the three months ended June 30, 2024, general and administrative expenses decreased $0.5 million.

The decrease was driven by reduced spending, primarily on insurance and facility costs.

Amortization of intangible assets was consistent at $0.3 million for each of the three months ended June 30, 2025 and 2024.

Research and development expenses were consistent at $0.5 million and $0.6 million for the three months ended September 30, 2025 and 2024, respectively.

Sales and marketing expenses were consistent at $1.7 million and $1.6 million for the three months ended September 30, 2025 and 2024, respectively.

General and administrative expenses were $4.6 million and $5.0 million for the three months ended September 30, 2025 and 2024, respectively.

The decrease was driven by a general net reduction in spending.

Amortization of intangible assets was consistent at $0.3 million for each of the three months ended September 30, 2025 and 2024.

Other expenses, net

Our other expenses, net for the three months ended June 30, 2025 and 2024, were as follows (dollars in thousands):

For the Three Months Ended June 30,

Our other expenses, net for the three months ended September 30, 2025 and 2024, were as follows (dollars in thousands):

For the Three Months Ended September 30,

Interest expense, net

Total other expenses, net

Total other expenses, net was $0.2 million for the three months ended June 30, 2025, compared to total other expenses, net of $0.3 million for the three months ended June 30, 2024.

The decrease in total other expense, net was primarily attributable to lower interest expense.

Total other expenses, net was $0.2 million for the three months ended September 30, 2025, compared to $0.1 million for the three months ended September 30, 2024.

The increase in total other expense, net was primarily attributable to lower interest income somewhat offset by lower interest expense.

Provision for (benefit from) income taxes

Our provision for and (benefit from) income taxes for the three months ended June 30, 2025 and 2024, was as follows (dollars in thousands):

For the Three Months Ended June 30,

Our provision for (benefit from) income taxes for the three months ended September 30, 2025 and 2024, was as follows (dollars in thousands):

For the Three Months Ended September 30,

Provision for (benefit from) income taxes

Effective tax rate

Our income taxes were not significant for either the three months ended June 30, 2025 or 2024.

The effective tax rates for the three months ended June 30, 2025 and 2024 were (0.5%) and 0.1%, respectively.

Our income taxes were not significant for either the three months ended September 30, 2025 or 2024.

The effective tax rates for the three months ended September 30, 2025 and 2024 were (1.9%) and 0.1%, respectively.

The effective tax rates differ from the federal statutory rate primarily due to operating losses not expected to produce an income tax benefit.

Comparison of the Six Months Ended June 30, 2025, and Six Months Ended June 30, 2024

The following tables set forth our results of operations for the six months ended June 30, 2025 and 2024 (dollars in thousands):

For the Six Months Ended June 30,

Comparison of the Nine Months Ended September 30, 2025, and Nine Months Ended September 30, 2024

The following tables set forth our results of operations for the nine months ended September 30, 2025 and 2024 (dollars in thousands):

For the Nine Months Ended September 30,

Cost of sales

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Loss from operations

Other income (expenses), net

Other expenses, net

Interest expense, net

Other adjustment to loan exit fee

Total other income (expenses), net

Total other expenses, net

Loss before income taxes

Provision for (benefit from) income taxes

Our revenue disaggregated by product category for the six months ended June 30, 2025 and 2024, was as follows (dollars in thousands):

For the Six Months Ended June 30,

Our revenue disaggregated by product category for the nine months ended September 30, 2025 and 2024, was as follows (dollars in thousands):

For the Nine Months Ended September 30,

Lab Essentials

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Total revenue

Total revenue was $20.1 million and $18.9 million for the six months ended June 30, 2025 and 2024, respectively.

Lab Essentials revenue was $15.9 million for the six months ended June 30, 2025, an increase of $1.0 million, or 6.7%, compared to $14.9 million for the six months ended June 30, 2024.

Total revenue was $30.5 million and $28.5 million for the nine months ended September 30, 2025 and 2024, respectively.

Lab Essentials revenue was $24.2 million for the nine months ended September 30, 2025, an increase of $2.2 million, or 9.8%, compared to $22.1 million for the nine months ended September 30, 2024.

The increase in Lab Essentials revenue was attributable to an increased number of customers, partially offset by slightly lower average revenue per customer.

Clinical Solutions revenue was $3.2 million for the six months ended June 30, 2025, a decrease of $0 .1 million, or 1 .9 %, compared to $3.3 million for the six months ended June 30, 2024.

Clinical Solutions revenue was $4.9 million for the nine months ended September 30, 2025, a decrease of $0 .3 million, or 6 .1 %, compared to $5.2 million for the nine months ended September 30, 2024.

The decrease in Clinical Solutions revenue was attributable to lower average revenue per customer, partially offset by an increased number of customers.

Our revenue disaggregated by geographic region, for the six months ended June 30, 2025 and 2024, was as follows (dollars in thousands):

For the Six Months Ended June 30,

Our revenue disaggregated by geographic region, for the nine months ended September 30, 2025 and 2024, was as follows (dollars in thousands):

For the Nine Months Ended September 30,

United States

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Revenue from U.S.

sales was $19.0 million and $18.1 million for the six months ended June 30, 2025 and 2024, respectively.

sales was $28.9 million and $27.2 million for the nine months ended September 30, 2025 and 2024, respectively.

Revenue from U.S.

sales as a percentage of our total revenue was consistent period over period, representing 94.9% and 95.7% of our total revenue during the six months ended June 30, 2025 and 2024, respectively.

Revenue from international sales was $1.0 million and $0.8 million for the six months ended June 30, 2025 and 2024, respectively.

Revenue from international sales as a percentage of our total revenue was also consistent period over period, representing 5.1% and 4.3% of our total revenue during the six months ended June 30, 2025 and 2024, respectively.

Our gross profit for the six months ended June 30, 2025 and 2024, was as follows (dollars in thousands):

For the Six Months Ended June 30,

sales as a percentage of our total revenue was consistent period over period, representing 94.6% and 95.3% of our total revenue during the nine months ended September 30, 2025 and 2024, respectively.

Revenue from international sales was $1.7 million and $1.3 million for the nine months ended September 30, 2025 and 2024, respectively.

Revenue from international sales as a percentage of our total revenue was also consistent period over period, representing 5.4% and 4.7% of our total revenue during the nine months ended September 30, 2025 and 2024, respectively.

Our gross profit for the nine months ended September 30, 2025 and 2024, was as follows (dollars in thousands):

For the Nine Months Ended September 30,

Cost of sales

Gross profit %

Gross profit percentage was 34.8% and 26.5% for the six months ended June 30, 2025 and 2024, respectively.

The increase in gross profit was driven by manufacturing efficiency gains and higher revenue.

Gross profit percentage was 33.4% and 17.9% for the nine months ended September 30, 2025 and 2024, respectively.

The increase was primarily driven by $2.8 million of non-recurring and non-cash charges during the nine months ended September 30, 2024 related to the disposal of expired inventory and write down of excess inventory.

Excluding those non-recurring and non-cash charges, gross profit would have been $7.9 million and gross profit percentage would have been 27.6%, respectively, in the nine months ended September 30, 2024.

The improvement in gross profit percentage from 27.6% to 33.4% was driven by manufacturing efficiency gains and higher revenue.

Operating expenses

Our operating expenses for the six months ended June 30, 2025 and 2024, were as follows (dollars in thousands):

For the Six Months Ended June 30,

Our operating expenses for the nine months ended September 30, 2025 and 2024, were as follows (dollars in thousands):

For the Nine Months Ended September 30,

Research and development

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Total operating expenses

Research and development expenses were $1.1 million and $1.5 million for the six months ended June 30, 2025 and 2024, respectively.

Research and development expenses were $1.7 million and $2.2 million for the nine months ended September 30, 2025 and 2024, respectively.

The decrease was primarily driven by lower salaries and wages resulting from the reduction in workforce that was completed early during the three months ended March 31, 2024.

Sales and marketing expenses were consistent at $3.2 million and $3.1 million for the six months ended June 30, 2025 and 2024, respectively.

Lower salaries and wages resulting from the reduction in workforce that occurred during the three months ended March 31, 2024, were largely offset by increased marketing costs during the six months ended June 30, 2025.

General and administrative expenses were $10.4 million and $12.9 million for the six months ended June 30, 2025 and 2024, respectively.

Excluding the one-time, non-recurring charges related to the reduction in workforce of $1.3 million and $0.1 million related to the increase of our loss contingency for the six months ended June 30, 2024, general and administrative expenses decreased $1.1 million.

The decrease was driven by reduced spend, primarily on facility costs and insurance as well as lower stock-based compensation expense due to one-time costs incurred in connection with the repricing that occurred during the three months ended March 31, 2024.

Sales and marketing expenses were $5.0 million and $4.8 million for the nine months ended September 30, 2025 and 2024, respectively.

The increase was primarily driven by higher marketing costs during the nine months ended September 30, 2025, partially offset by lower salaries and wages resulting from the reduction in workforce that occurred during the three months ended March 31, 2024.

General and administrative expenses were $15.1 million and $17.8 million for the nine months ended September 30, 2025 and 2024, respectively.

Excluding the one-time, non-recurring charges related to the reduction in workforce of $1.3 million and $0.1 million related to the increase of our loss contingency for the nine months ended September 30, 2024, general and administrative expenses decreased $1.4 million.

The decrease was driven by reduced spend, primarily on facility costs, insurance, freight, and professional fees as well as lower stock-based compensation expense due to one-time costs incurred in connection with the repricing that occurred during the three months ended March 31, 2024.

See “Notes to Financial Statements—Note 13.

Stock-Based Compensation” for a more detailed discussion of the stock option repricing.

Amortization of intangible assets was consistent at $0.6 million for each of the six months ended June 30, 2025 and 2024.

Other income (expenses), net

Our other income (expenses), net for the six months ended June 30, 2025 and 2024, were as follows (dollars in thousands):

For the Six Months Ended June 30,

Amortization of intangible assets was consistent at $0.9 million for each of the nine months ended September 30, 2025 and 2024.

Other expenses, net

Our other expenses, net for the nine months ended September 30, 2025 and 2024, were as follows (dollars in thousands):

For the Nine Months Ended September 30,

Interest expense, net

Other adjustment to loan exit fee

Total other income (expenses), net

Total other income, net was $0.2 million for the six months ended June 30, 2025, compared to total other expenses, net of $0.4 million for the six months ended June 30, 2024.

The decrease in total other expense, net was primarily attributable to a $0.5 million adjustment recognized on the exit fee concurrent with the refinancing of our credit agreement during the three months ended March 31, 2025 coupled with lower interest expense.

Total other expenses, net

Total other expenses, net were not significant for the nine months ended September 30, 2025, compared to $0.6 million for the nine months ended September 30, 2024.

Provision for (benefit from) income taxes

Our provision for and (benefit from) income taxes for the six months ended June 30, 2025 and 2024, was as follows (dollars in thousands):

For the Six Months Ended June 30,

Our provision for (benefit from) income taxes for the nine months ended September 30, 2025 and 2024, was as follows (dollars in thousands):

For the Nine Months Ended September 30,

Provision for (benefit from) income taxes

Effective tax rate

Our income taxes were not significant for either the six months ended June 30, 2025 or 2024.

The effective tax rates for the six months ended June 30, 2025 and 2024 were (0.5)% and 0.3% respectively.

Our income taxes were not significant for either the nine months ended September 30, 2025 or 2024.

The effective tax rates for the nine months ended September 30, 2025 and 2024 were (1.0)% and 0.2% respectively.

The effective tax rates differ from the federal statutory rate primarily due to operating losses not expected to produce an income tax benefit.

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Our principal liquidity requirements are to fund our operations and capital expenditures.

As of June 30, 2025, we had $31.6 million in net working capital, which included $24.0 million in cash and cash equivalents and short-term investments.

Our material cash requirements from known contractual obligations and commitments relate primarily to operating leases for our office, manufacturing, warehouse, and distribution facilities at June 30, 2025.

As of September 30, 2025, we had $29.6 million in net working capital, which included $22.1 million in cash and cash equivalents and short-term investments.

See “Notes to Financial Statements—Note 9.

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Long-term Debt, Net” for a more detailed discussion of the material terms of our Second Amended and Restated Credit Agreement.

The following table sets forth, for the periods indicated, net cash flows used in operating activities, used in investing activities, and used in financing activities (in thousands):

For the Six Months Ended June 30,

On July 10, 2025, we filed a “shelf” registration statement on Form S-3 (Reg.

333-288613) with the SEC, which was declared effective on July 16, 2025.

This shelf registration statement, which includes a base prospectus, allows us at any time to offer any combination of securities described in the prospectus in one or more offerings for our own account in an aggregate amount up to $225 million.

The Form S-3 is intended to provide us flexibility to conduct registered sales of our securities, subject to market conditions and our future capital needs.

The terms of any future offering under the shelf registration statement will be established at the time of such offering and will be described in a prospectus supplement filed with the SEC prior to the completion of any such offering.

The following table sets forth, for the periods indicated, net cash flows used in operating activities, provided by (used in) investing activities, and provided by financing activities (in thousands):

For the Nine Months Ended September 30,

Net cash used in operating activities

Net cash provided by (used in) investing activities

Net cash used in financing activities

Net cash provided by financing activities

Net decrease in cash and cash equivalents

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Net cash used in operating activities consists primarily of net loss adjusted for certain non-cash items (including depreciation and amortization, bad debt expense, deferred taxes, loss on disposal of property, plant, and equipment, inventory reserve, amortization of debt issuance costs, and stock-based compensation expense), and the effect of changes in working capital and other activities.

Net cash used in operating activities was $6.2 million for the six months ended June 30, 2025, which primarily consisted of net loss of $8.2 million plus net adjustments for non-cash charges of $5.4 million, offset by net changes in operating assets and liabilities of $3.4 million.

The primary non-cash adjustments to net loss included $3.2 million of depreciation and amortization, $1.8 million of stock-based compensation, and $0.9 million provision for inventory, partially offset an adjustment to the loan exit fee of $0.5 million, and amortization of the discount on short-term investments of $0.4 million.

The main drivers of the changes in operating assets and liabilities were a $1.7 million increase in inventories, a $1.2 million decrease in accrued liabilities, and a $0.9 million increase in accounts receivable, partially offset by a $0.4 million increase in accounts payable.

Net cash used in operating activities was $9.4 million for the six months ended June 30, 2024, which primarily consisted of net loss of $13.5 million plus net adjustments for non-cash charges of $6.6 million, offset by net changes in operating assets and liabilities of $2.6 million.

The primary non-cash adjustments to net loss included $3.3 million of depreciation and amortization, $2.1 million of stock-based compensation, and $0.9 million provision for inventory.

The main drivers of the changes in operating assets and liabilities were a $1.8 million decrease in accrued liabilities, a $0.7 million increase in accounts receivable, a $0.4 million decrease in accounts payable, and a $0.3 million increase in inventories, partially offset by a $0.4 million decrease in prepaid expenses and other current assets and a $0.2 million decrease other non-current assets.

Net cash used in operating activities was $8.2 million for the nine months ended September 30, 2025, which primarily consisted of net loss of $12.5 million plus net adjustments for non-cash charges of $8.5 million, offset by net changes in operating assets and liabilities of $4.2 million.

The primary non-cash adjustments to net loss included $4.8 million of depreciation and amortization, $2.7 million of stock-based compensation, and a $1.7 million provision for inventory, partially offset amortization of the discount on short-term investments of $0.5 million, and an adjustment to the loan exit fee of $0.5 million.

The main drivers of the changes in operating assets and liabilities were a $1.8 million increase in inventories, a $1.5 million increase in prepaid expenses and other current assets, a $0.9 million increase in accounts receivable, and a $0.4 million decrease in accrued liabilities, partially offset by a $0.2 million increase in accounts payable.

Net cash used in operating activities was $11.5 million for the nine months ended September 30, 2024, which primarily consisted of net loss of $21.0 million plus net adjustments for non-cash charges of $12.4 million, offset by net changes in operating assets and liabilities of $2.9 million.

The primary non-cash adjustments to net loss included $4.9 million of depreciation and amortization, a $4.2 million provision for inventory, $2.9 million of stock-based compensation, and $0.3 million of amortization of debt financing costs.

The main drivers of the changes in operating assets and liabilities were a $0.9 million increase in prepaid and other current assets, a $0.7 million decrease in accrued liabilities, a $0.7 million increase in accounts receivable, a $0.4 million decrease in accounts payable, and a $0.3 million increase in inventories, partially offset by a $0.3 million decrease other non-current assets.

Investing Activities

Net cash provided by investing activities was $5.9 million for the six months ended June 30, 2025, which consisted of maturities of short-term investments of $16.0 million, partially offset by purchases of short-term investments of $9.7 million and purchases of property, plant, and equipment of $0.4 million.

Net cash used in investing activities was $0.1 million for the six months ended June 30, 2024, which consisted of purchases of property, plant, and equipment of $0.2 million, partially offset by proceeds from the sale of certain long-lived assets of $0.1 million.

Net cash provided by investing activities was $7.5 million for the nine months ended September 30, 2025, which consisted of maturities of short-term investments of $22.0 million, partially offset by purchases of short-term investments of $13.7 million and purchases of property, plant, and equipment of $0.8 million.

Net cash used in investing activities was $25.9 million for the nine months ended September 30, 2024, which consisted of purchases of short-term investments of $25.4 million and purchases of property, plant, and equipment of $0.6 million, partially offset by proceeds from the sale of certain long-lived assets of $0.1 million.

Financing Activities

Net cash used in financing activities was $0.1 million for the six months ended June 30, 2025, which was primarily attributable to payment of exit fee costs of $1.1 million, payment of debt issuance costs of $0.1 million, and repayment of financed insurance premiums of $0.1 million, largely offset by proceeds from long-term debt of $1.1 million and proceeds of $0.1 million from the issuance of common stock under our employee stock purchase plan.

Net cash used in financing activities was $0.4 million for the six months ended June 30, 2024, which was primarily attributable to repayments of financed insurance premiums of $0.4 million, partially offset by proceeds of $0.1 million from the issuance of common stock under our employee stock purchase plan.

Net cash provided by financing activities was $0.2 million for the nine months ended September 30, 2025, which was primarily attributable to proceeds from long-term debt of $1.1 million, proceeds from financed insurance premiums of $0.3 million, and proceeds of $0.1 million from the issuance of common stock under our employee stock purchase plan, largely offset by the payment of exit fee costs of $1.1 million, repayment of financed insurance premiums of $0.2 million, and payment of debt issuance costs of $0.1 million.

Net cash provided by financing activities was $15.0 million for the nine months ended September 30, 2024, which was primarily attributable to net proceeds from equity financing of $15.1 million, proceeds from financed insurance premiums of $0.4 million, and proceeds of $0.1 million from the issuance of common stock under our employee stock purchase plan, partially offset by the repayment of financed insurance premiums of $0.6 million.

Critical Accounting Policies and Estimates

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• the date on which we have issued more than $1.0 billion in nonconvertible debt during the previous three years;

outstanding common equity held by our non-affiliates, measured each year on the last business day of our most recently completed second fiscal quarter, and (ii) been public for at least 12 months).

• the date on which we are deemed to be a “large accelerated filer” under the Securities Exchange Act of 1934, as amended (the Exchange Act) (i.e., the first day of the fiscal year after we have (i) more than $700.0 million in outstanding common equity held by our non-affiliates, measured each year on the last business day of our most recently completed second fiscal quarter, and (ii) been public for at least 12 months).

We are also a “smaller reporting company” as defined in Rule 12b-2 under the Exchange Act.

6 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 2. Management’s Discussion and Analysis