0001558370-23-018091 | 10-Q | XBRL Viewer

Revenue and Related Matters

9 Months Ended

Sep. 30, 2023

Note 3. Revenue and Related Matters

Disaggregated Revenue

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


	Three Months Ended September 30, 2023								Three Months Ended September 30, 2022
	North America		EMEA		Asia Pacific		Total		North America		EMEA		Asia Pacific		Total
Product revenue
Instruments	$	1,693	$	707	$	1,257	$	3,657	$	2,964	$	3,115	$	1,684	$	7,763
Consumable and other products		8,710		5,205		2,088		16,003		6,262		2,840		828		9,930
Total	$	10,403	$	5,912	$	3,345	$	19,660	$	9,226	$	5,955	$	2,512	$	17,693

Service revenue
Service-type warranties	$	1,595	$	810	$	161	$	2,566	$	1,454	$	703	$	125	$	2,282
Research services		6,690		617		433		7,740		5,246		305		44		5,595
Other services		388		243		1		632		315		142		36		493
Total	$	8,673	$	1,670	$	595	$	10,938	$	7,015	$	1,150	$	205	$	8,370

Collaboration and license revenue	$	237	$	—	$	—	$	237	$	136	$	165	$	—	$	301

Grant revenue	$	499	$	—	$	—	$	499	$	282	$	—	$	—	$	282

Total revenues	$	19,812	$	7,582	$	3,940	$	31,334	$	16,659	$	7,270	$	2,717	$	26,646


	Nine Months Ended September 30, 2023								Nine Months Ended September 30, 2022
	North America		EMEA		Asia Pacific		Total		North America		EMEA		Asia Pacific		Total
Product revenue
Instruments	$	4,879	$	3,659	$	3,864	$	12,402	$	7,602	$	7,288	$	4,699	$	19,589
Consumable and other products		25,978		14,692		5,567		46,237		19,814		10,854		2,877		33,545
Total	$	30,857	$	18,351	$	9,431	$	58,639	$	27,416	$	18,142	$	7,576	$	53,134

Service revenue
Service-type warranties	$	4,711	$	2,269	$	449	$	7,429	$	4,057	$	2,050	$	341	$	6,448
Research services		18,200		1,562		1,001		20,763		16,853		752		65		17,670
Other services		1,142		719		16		1,877		916		590		104		1,610
Total	$	24,053	$	4,550	$	1,466	$	30,069	$	21,826	$	3,392	$	510	$	25,728

Collaboration and license revenue	$	1,234	$	—	$	—	$	1,234	$	179	$	248	$	52	$	479

Grant revenue	$	877	$	—	$	—	$	877	$	357	$	—	$	—	$	357

Total revenues	$	57,021	$	22,901	$	10,897	$	90,819	$	49,778	$	21,782	$	8,138	$	79,698

For each of the three and nine months ended September 30, 2023, one customer accounted for more than 10% of the Company’s total revenues. At September 30, 2023, one customer accounted for more than 10% of the Company’s gross accounts receivable.

Product Revenue

UltraDx

On May 26, 2022, the Company and UltraDx Limited (“UltraDx”), a company formed by ARCH Venture Partners (“ARCH”), entered into an agreement (the “UltraDx Agreement). Under the UltraDx Agreement, the Company agreed to supply UltraDx with HD-X instruments (both fully assembled and disassembled), assays and assay components, and granted a co-exclusive license to manufacture, seek Chinese regulatory approval of (including performance of any necessary research and development activities), and commercialize, HD-X instruments assembled in China and related assays in the Chinese neurological in vitro diagnostic market. Refer to Note 14 − Related Party Transactions for a discussion of the related party relationships between Quanterix and these entities.

The Company determined that the instruments, components, and licenses formed a single, combined performance obligation. The consideration due to the Company included (1) cash proceeds of $1.9 million, which was received and recognized as revenue in the third quarter of 2022 when the instruments, components, and licenses were delivered to and paid by UltraDx, and (2) contingent, non-cash consideration in the form of ordinary shares of UltraDx with a deemed fair value of $1.0 million. The issuance of the shares was contingent on UltraDx completing a preferred share financing under the terms and conditions in the UltraDx Agreement. Given the uncertainty of the completion of the preferred share financing, the Company concluded that the non-cash consideration related to the ordinary shares was variable consideration that was fully constrained at contract inception.

In the second quarter of 2023, UltraDx completed the qualified preferred share financing and issued to the Company one million ordinary shares. Refer to Note 6 − Fair Value of Financial Instruments for the Company’s disclosures related to determining the fair value of the shares received. Also refer to Note 16 − Variable Interest Entities for additional information on the Company’s investment interests in UltraDx as a result of the share issuance.

During the three months ended September 30, 2023, revenue recognized was not material. During the nine months ended September 30, 2023, the Company recognized $1.6 million of revenue, which includes the one-time revenue from the receipt of the UltraDx shares in the second quarter of 2023. During the three and nine months ended September 30, 2022, the Company recognized $1.9 million of revenue.

Service Revenue

Eli Lilly and Company

On February 25, 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 first quarter of 2022, which was recognized over a one-year period. In addition, under the statement of work, the Company receives $1.5 million per calendar quarter, which began in the first quarter of 2022. The statement of work automatically renews on a quarterly basis until Lilly provides a termination notice in accordance with the terms of the Lilly Collaboration Agreement. As of September 30, 2023, the Lilly Collaboration Agreement and the statement of work were still in effect.

Concurrent with the execution of the Lilly Collaboration Agreement, the Company entered into a Technology License Agreement (the “Lilly License”) under which Lilly granted the Company a non-exclusive license to Lilly’s proprietary pTau217 antibody technology for 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 Lilly 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 royalties on net sales of licensed products.

The Company recognized revenue from the Lilly Collaboration Agreement of $1.5 million and $4.5 million during the three and nine months ended September 30, 2023, respectively, and $2.7 million and $8.1 million during the three and nine months ended September 30, 2022, respectively.

Collaboration and License Revenue

Abbott Laboratories

On September 29, 2020, the Company and Abbott Laboratories (“Abbott”) entered into a Non-Exclusive License Agreement (the “Abbott License Agreement”) under which the Company granted Abbott a non-exclusive, worldwide, royalty-bearing license, without the right to sublicense, to the Company’s bead-based single molecule detection patent (the “Licensed Patents”) in the field of in vitro diagnostics. Abbott paid the Company an initial license fee of $10.0 million, which was recognized as license revenue during 2020. Abbott 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 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 and nine months ended September 30, 2023, the Company recognized zero and $0.5 million of one-time revenue, respectively, related to the expiration of a previously paid for option to expand the scope of the Abbott License Agreement.

Grant Revenue

The Company recognizes grant revenue after funding is committed and as each grant’s related activities are performed. The timing of revenue recognition and receipt of funding varies by grant and can be independent from performance of the related activities, such as an upfront payment of the award value, or subsequent to the Company’s requests for reimbursement for already performed activities (subject to the approval of the granting organization), as further described below.

NIH Grant

On September 21, 2022, the Company and the National Institutes of Health (the “NIH”), an agency of the U.S. Department of Health and Human Services, entered into a contract (the “NIH Grant”) with a total award value of $1.7 million. The NIH granted the Company funding in support of the development of certain point-of-care diagnostic technologies through collaborative efforts. Grant funding is to be used solely for activities related to the point-of-care diagnostic device development project and the contract period runs through August 2025. Receipt of the award value occurs throughout the term of the contract period and after the Company submits for reimbursement of activities related to the grant. As of September 30, 2023, the Company had received $0.5 million of the award value.

During the three months ended September 30, 2023, grant revenue recognized and research and development expenses incurred were not material. During the nine months ended September 30, 2023, grant revenue recognized and research and development expenses incurred were $0.5 million and $0.4 million, respectively. During the three and nine months ended September 30, 2022, grant revenue recognized and research and development expenses incurred were not material.

ADDF Grant

On March 24, 2022, the Company and the Alzheimer’s Drug Discovery Foundation (the “ADDF”) entered into a contract (the “ADDF Grant”) with a total funding value of $2.3 million. The ADDF is a charitable venture philanthropy entity that granted the Company funding in support of certain activities for the development of an in vitro diagnostic test for early detection of Alzheimer's disease. The ADDF Grant restricts the Company’s use of the granted funds solely for activities related to the Company’s Alzheimer’s diagnostic test development project and the contract period runs through June 2024. Receipt of the contract funding was subject to achievement of pre-defined milestones, and as of September 30, 2023, the Company had received the total funding value of $2.3 million.

During the three and nine months ended September 30, 2023, grant revenue recognized and research and development expenses incurred were $0.3 million and $0.4 million, respectively. During the three and nine months ended September 30, 2022, grant revenue recognized and research and development expenses incurred were $0.3 million and $0.4 million, respectively.

RADx Grant

On September 29, 2020, the Company entered into a contract with the NIH under its Rapid Acceleration of Diagnostics (“RADx”) program (the “RADx Grant”), with a total award value of $18.2 million. The RADx Grant was to accelerate the continued development, scale-up, and deployment of the novel SARS-CoV-2 antigen detection test using the Company’s Simoa technology. Grant funding was used to expand assay kit manufacturing capacity and commercial deployment readiness, and the contract ran through the final milestone on May 31, 2022. Receipt of the award value occurred throughout the term of the contract period and after the Company submitted for reimbursement of activities related to the grant. During the first half of 2022, the Company received $0.5 million which represented the final and total funding value of the $18.2 million award.

During the three and nine months ended September 30, 2023 and 2022, the Company recognized no grant revenue and incurred no research and development expenses. As of September 30, 2023, the Company had no future obligations under the RADx Grant.

Contract Assets

There were no contract assets of as September 30, 2023 or December 31, 2022.

Deferred Revenue

The Company refers to contract liabilities as deferred revenue on the Consolidated Balance Sheets. During the nine months ended September 30, 2023 and 2022, the Company recognized $6.4 million and $4.7 million of revenue, respectively, related to its deferred revenue balance at January 1 of each such period.

Remaining Performance Obligations

As of September 30, 2023, the aggregate amount of transaction prices allocated to performance obligations that have not yet been satisfied, or are partially satisfied, was $11.0 million.

Of the performance obligations not yet satisfied or partially satisfied, $9.8 million is expected to be recognized as revenue in the next 12 months, with the remainder expected to be recognized thereafter. The $9.8 million primarily consists of amounts billed for undelivered services related to initial and extended service-type warranties and research services.

Costs to Obtain a Contract

The Company capitalizes commissions paid to its sales representatives and related fringe benefits costs that are incremental to obtaining customer contracts. These costs are included in prepaid expenses and other current assets on the Consolidated Balance Sheets. Changes in costs to obtain a contract were as follows (in thousands):


	2023		2022
Balance at December 31 of prior year	$	377	$	440
Deferral of costs to obtain a contract		414		1,182
Amortization of costs to obtain a contract		(491)		(914)
Balance at September 30	$	300	$	708

Costs to obtain a contract are amortized to earnings over the life of the contract and are recorded in cost of goods sold and selling, general, and administrative expense on the Consolidated Statements of Operations. The Company evaluates potential impairment of these amounts at each balance sheet date, and no related impairments were recorded during the nine months ended September 30, 2023 and 2022.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

Income Taxes (Details)	3 Months Ended		9 Months Ended
Income Taxes (Details)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Taxes
Effective Income Tax Rate Reconciliation, Percent	(2.70%)	0.20%	(3.00%)	0.10%

Marketable Debt Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Marketable Securities [Line Items]
Amortized cost	$ 151,967
Unrealized Gains	7
Unrealized Losses	(248)
Fair Value	151,726
Marketable securities	126,449	$ 0
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months	130,734
Unrealized Loses	(248)
Amortized cost due within one year	110,743
Fair value due within one year	110,670
Amortized cost due in one to two years	41,224
Fair value due in one to two years	41,056
Accrued interest receivable	400
Commercial paper
Marketable Securities [Line Items]
Amortized cost	75,934
Unrealized Losses	(55)
Fair Value	75,879
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months	75,879
Unrealized Loses	(55)
U.S. Treasuries
Marketable Securities [Line Items]
Amortized cost	16,195
Unrealized Gains	1
Unrealized Losses	(1)
Fair Value	16,195
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months	5,940
Unrealized Loses	(1)
U.S. Government agencies
Marketable Securities [Line Items]
Amortized cost	24,109
Unrealized Gains	6
Unrealized Losses	(50)
Fair Value	24,065
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months	13,328
Unrealized Loses	(50)
Corporate bonds
Marketable Securities [Line Items]
Amortized cost	35,729
Unrealized Losses	(142)
Fair Value	35,587
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months	35,587
Unrealized Loses	(142)
Cash and cash equivalents
Marketable Securities [Line Items]
Fair Value	$ 25,277

Significant Accounting Policies - Presentation of Restricted Cash (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash and Cash equivalents
Cash and cash equivalents	$ 343,743	$ 201,261	$ 338,740
Restricted cash (1)	2,596	2,647
Cash, cash equivalents, and restricted cash	346,339	$ 203,908	$ 341,337	$ 399,042
Foreign exchange losses	$ (800)

Marketable Debt Securities

9 Months Ended

Sep. 30, 2023

INVESTMENT SECURITIES

Marketable Debt Securities

Note 5. Marketable Securities

The amortized cost, gross unrealized gains, gross unrealized losses, and fair value of the Company’s marketable securities by major security type were as follows (in thousands):


As of September 30, 2023	Amortized cost		Unrealized Gains		Unrealized Losses		Fair Value
Commercial paper	$	75,934	$	—	$	(55)	$	75,879
U.S. Treasuries		16,195		1		(1)		16,195
U.S. Government agency bonds		24,109		6		(50)		24,065
Corporate bonds		35,729		—		(142)		35,587
Total marketable securities	$	151,967	$	7	$	(248)	$	151,726

Marketable securities are reported in the following Consolidated Balance Sheets captions:
Cash and cash equivalents							$	25,277
Marketable securities								126,449
Total marketable securities							$	151,726

The Company did not have any marketable securities as of December 31, 2022.

The following table shows the gross unrealized losses and fair value of the Company’s available-for-sale securities with unrealized losses that are not deemed to be other-than-temporary, aggregated by major security type and length of time that the individual securities have been in a continuous unrealized loss position (in thousands):


		Less Than 12 Months
As of September 30, 2023	Fair Value		Unrealized Losses
Commercial paper	$	75,879	$	(55)
U.S. Treasuries		5,940		(1)
U.S. Government agency bonds		13,328		(50)
Corporate bonds		35,587		(142)
Total	$	130,734	$	(248)

The Company did not have any individual securities in a continuous loss position for greater than 12 months, and there were no individual securities that were in a significant unrealized loss position as of September 30, 2023. For marketable securities in an unrealized loss position, the Company does not intend to sell them before recovery of their amortized cost bases, it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost bases, and the unrealized losses are not credit related. Accordingly, the Company has not recorded any impairment losses or a credit loss allowance.

The Company did not sell any marketable securities or record any realized gains or losses for the three and nine months ended September 30, 2023. At September 30, 2023, the Company had $0.4 million of accrued interest receivable on its marketable securities, which was recorded in prepaid expenses and other current assets on the Consolidated Balance Sheets.

The following table summarizes the contractual maturities of the Company’s marketable securities (in thousands):


As of September 30, 2023	Amortized cost		Fair Value
Due within one year	$	110,743	$	110,670
Due in one to two years		41,224		41,056
Total	$	151,967	$	151,726

Stock-Based Compensation - Black-Scholes valuation model Assumptions (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Fair value assumptions:
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Employee Stock Option [Member]
Fair value assumptions:
Risk-free interest rate, Minimum	4.00%	2.70%	3.50%	1.40%
Risk-free interest rate, Maximum	4.40%	3.90%	4.40%	3.90%
Expected term (in years)	5 years 1 month 6 days
Expected volatility, Minimum	82.60%	62.60%	71.10%	55.00%
Expected volatility, Maximum	83.10%	69.80%	83.10%	69.80%
Weighted-average grant date fair value	$ 16.82	$ 5.80	$ 10.25	$ 10.28
Employee Stock Option [Member] \| Minimum
Fair value assumptions:
Expected term (in years)		5 years 6 months	5 years	5 years 6 months
Employee Stock Option [Member] \| Maximum
Fair value assumptions:
Expected term (in years)		5 years 8 months 12 days	5 years 1 month 6 days	5 years 9 months 18 days
Employee Stock Purchase Plan
Fair value assumptions:
Risk-free interest rate, Minimum		3.30%	5.20%	0.70%
Risk-free interest rate	5.50%
Risk-free interest rate, Maximum		3.90%	5.50%	3.90%
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Expected term (in years)	6 months	6 months	6 months	6 months
Expected volatility, Minimum	74.70%	115.30%	72.80%	51.90%
Expected volatility, Maximum	78.50%	117.30%	82.50%	117.30%
Weighted-average grant date fair value	$ 4.39	$ 3.02	$ 2.63	$ 3.85

Significant Accounting Policies

9 Months Ended

Sep. 30, 2023

Significant Accounting Policies

Significant Accounting Policies

Note 2. Significant Accounting Policies

Basis of Presentation

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

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

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

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

Use of Estimates

The preparation of the Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, revenues, and expenses reported and disclosures in the financial statements and accompanying notes. Such estimates include, but are not limited to, revenue recognition, valuation of inventory, leases, valuation of intangible and other long-lived assets, recoverability of deferred

tax assets, ongoing impairment reviews, and stock-based compensation expense. The Company bases its estimates on historical experience, known trends, market specific information, or other relevant factors it believes to be reasonable. On an ongoing basis, management evaluates its estimates and changes in estimates are recorded in the period in which they become known. Actual results may differ from these estimates.

Foreign Currency

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

Foreign currency transaction gains (losses) are included in other income (expense), net on the Consolidated Statements of Operations. Foreign exchange losses were not material during the nine months ended September 30, 2023, and were $0.8 million during the nine months ended September 30, 2022.

Principles of Consolidation

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

In accordance with Accounting Standards Codification (“ASC”) 810 – Consolidation, the Company assesses the terms of its investment interests in entities to determine if any meet the definition of a variable interest entity (“VIE”) and require consolidation into its Consolidated Financial Statements. Refer to Note 16 − Variable Interest Entities for further discussion.

Presentation of Restricted Cash

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


	As of September 30,
	2023		2022
Cash and cash equivalents	$	201,261	$	343,743
Restricted cash (1)		2,647		2,596
Cash, cash equivalents, and restricted cash	$	203,908	$	346,339

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

Marketable Securities

The Company’s current portfolio of marketable securities is entirely debt securities and may at any time include commercial paper, U.S. Treasuries, corporate notes and bonds, U.S. Government agency bonds, certificates of deposit, and similar types of debt securities. Marketable debt securities with original maturities of three months or less at the time of purchase are recorded in cash equivalents on the Consolidated Balance Sheets as they are considered highly liquid and readily convertible into cash. All other marketable securities, including those with maturities beyond one year, are recorded as current assets on the Consolidated Balance Sheets based on their highly liquid nature and because such securities are available for use in current operations.

The Company classifies its marketable securities as either held to maturity, available-for-sale, or trading at the time of purchase and re-evaluates such classification at each balance sheet date. All of the Company’s marketable securities are currently classified as available-for-sale as it may use them in current operations. Available-for-sale securities are recorded at fair value (refer to Note 6 − Fair Value of Financial Instruments).

Unrealized gains and losses (other than impairment or credit related losses) are recorded in accumulated other comprehensive income (loss), net of tax, a component of stockholders’ equity on the Consolidated Balance Sheets. Realized gains and losses are determined using the specific identification method and are recorded in other income (expense), net on the Consolidated Statements of Operations.

Quarterly, or more frequently if circumstances warrant, the Company monitors its marketable securities for impairment. In the event a security’s fair value is less than its amortized cost basis, the Company evaluates whether an impairment exists and if the impairment is a result of credit loss or other factors. For a security in an unrealized loss position, if the Company intends to sell the security in an unrealized loss position, or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, an impairment loss equal to the difference between the security’s fair value and amortized cost basis is recorded in other income (expense), net. Additionally, the Company determines if a credit loss exists by considering information about the collectability of the security, current market conditions, and the issuer’s financial condition. If a decline in fair value is a result of a credit loss, an allowance for credit losses is recorded in other income (expense), net, limited to the portion attributed to the credit loss.

Recent Accounting Pronouncements

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

Revenue and Related Matters - Service Revenue (Details) $ in Thousands	3 Months Ended			9 Months Ended		12 Months Ended
	Sep. 30, 2023 USD ($) customer	Sep. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Sep. 30, 2023 USD ($) customer	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Service Revenue
Revenue	$ 31,334	$ 26,646		$ 90,819	$ 79,698
Accounts Receivable
Service Revenue
Number Of Customers With High Percent Of Gross Accounts Receivable \| customer	1			1
Customer Concentration Risk
Service Revenue
Threshold limit used for calculating concentration risk percentage				10.00%
Customer Concentration Risk \| Revenue.
Service Revenue
Number Of Customers With High Percent Of Total Revenue \| customer	1			1
Threshold limit used for calculating concentration risk percentage	10.00%			10.00%
Service revenue
Service Revenue
Revenue	$ 10,938	8,370		$ 30,069	25,728
Collaboration agreement \| Service revenue
Service Revenue
Revenue	$ 1,500	$ 2,700		$ 4,500	$ 8,100
Master collaboration agreement \| Eli Lilly
Service Revenue
Non-refundable up-front payment received			$ 5,000
Statement of works agreement \| Eli Lilly
Service Revenue
Collaborative arrangement payment received per quarter						$ 1,500

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common stock	Additional paid-in capital	Accumulated other comprehensive income (loss)	Accumulated deficit	Total
Beginning Balance at Dec. 31, 2021	$ 37	$ 745,936	$ 441	$ (305,462)	$ 440,952
Beginning balance (in shares) at Dec. 31, 2021	36,768
Increase (Decrease) in Stockholders' Equity
Issuance of common stock under stock plans, including tax effects		1,597			1,597
Issuance of common stock under stock plans, including tax effects (in shares)	326
Stock-based compensation expense		11,779			11,779
Foreign currency translation			(3,440)		(3,440)
Net loss				(78,119)	(78,119)
Ending Balance at Sep. 30, 2022	$ 37	759,312	(2,999)	(383,581)	372,769
Ending Balance (in shares) at Sep. 30, 2022	37,094
Beginning Balance at Jun. 30, 2022	$ 37	756,139	(2,203)	(348,517)	405,456
Beginning balance (in shares) at Jun. 30, 2022	36,975
Increase (Decrease) in Stockholders' Equity
Issuance of common stock under stock plans, including tax effects		407			407
Issuance of common stock under stock plans, including tax effects (in shares)	119
Stock-based compensation expense		2,766			2,766
Foreign currency translation			(796)		(796)
Net loss				(35,064)	(35,064)
Ending Balance at Sep. 30, 2022	$ 37	759,312	(2,999)	(383,581)	372,769
Ending Balance (in shares) at Sep. 30, 2022	37,094
Beginning Balance at Dec. 31, 2022	$ 37	763,688	(2,623)	(402,162)	358,940
Beginning balance (in shares) at Dec. 31, 2022	37,280
Increase (Decrease) in Stockholders' Equity
Issuance of common stock under stock plans, including tax effects	$ 1	2,489			2,490
Issuance of common stock under stock plans, including tax effects (in shares)	559
Stock-based compensation expense		12,438			12,438
Unrealized loss on marketable securities, net of tax			(241)		(241)
Foreign currency translation			(350)		(350)
Net loss				(19,925)	(19,925)
Ending Balance at Sep. 30, 2023	$ 38	778,615	(3,214)	(422,087)	353,352
Ending Balance (in shares) at Sep. 30, 2023	37,839
Beginning Balance at Jun. 30, 2023	$ 37	772,473	(2,825)	(414,329)	355,356
Beginning balance (in shares) at Jun. 30, 2023	37,566
Increase (Decrease) in Stockholders' Equity
Issuance of common stock under stock plans, including tax effects	$ 1	1,799			1,800
Issuance of common stock under stock plans, including tax effects (in shares)	273
Stock-based compensation expense		4,343			4,343
Unrealized loss on marketable securities, net of tax			(241)		(241)
Foreign currency translation			(148)		(148)
Net loss				(7,758)	(7,758)
Ending Balance at Sep. 30, 2023	$ 38	$ 778,615	$ (3,214)	$ (422,087)	$ 353,352
Ending Balance (in shares) at Sep. 30, 2023	37,839

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Restructuring - Roll forward (Details) - Severance and Employee Benefit Costs $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Restructuring
Balance at Beginning of period	$ 328
Accrual adjustments	(33)
Cash payments	(16)
Foreign currency translation	(4)
Balance at End of period	$ 275

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Stock-Based Compensation - Share-based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Stock-based compensation
Share-based compensation expense	$ 4,343	$ 2,766	$ 12,438	$ 11,779
Cost of product revenue
Stock-based compensation
Share-based compensation expense	224	199	611	424
Cost of service and other revenue
Stock-based compensation
Share-based compensation expense	259	159	867	530
Research and development
Stock-based compensation
Share-based compensation expense	449	320	1,224	1,200
Selling, general, and administrative
Stock-based compensation
Share-based compensation expense	3,411	$ 2,088	9,736	$ 9,625
Restricted stock units and stock options
Stock-based compensation
Total unrecognized compensation cost related to unvested stock awards	$ 37,400		$ 37,400
Period of recognition of unrecognized compensation cost			2 years 9 months 18 days

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

Allowance for Credit Losses

9 Months Ended

Sep. 30, 2023

Allowance for Credit Losses

Allowance for Credit Losses

Note 4. Allowance for Credit Losses

The Company is exposed to credit losses primarily through accounts receivable from sales of its products and services. The Company’s expected credit loss allowance methodology is developed using historical collection experience, current and future economic and market conditions, and a review of the status of customers’ accounts receivable.

The change in the allowance for credit losses on accounts receivable is summarized as follows (in thousands):


	2023		2022
Balance at December 31 of prior year	$	118	$	419
Provision for expected credit losses		605		102
Write-offs and recoveries collected		(294)		—
Balance at September 30	$	429	$	521

Fair value of financial instruments

9 Months Ended

Sep. 30, 2023

Fair value of financial instruments

Fair value of financial instruments

Note 6. Fair Value of Financial Instruments

Recurring Fair Value Measurements

The following tables present the Company’s fair value hierarchy for its financial assets that are measured at fair value on a recurring basis (in thousands):


As of September 30, 2023	Total		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Financial assets:
Cash equivalents: (1)
Money market funds	$	153,306	$	153,306	$	—	$	—
Commercial paper		19,006		—		19,006		—
U.S. Treasuries		6,271		—		6,271		—
Total cash equivalents:		178,583		153,306		25,277		—
Marketable securities: (2)
Commercial paper		56,874		—		56,874		—
U.S. Treasuries		9,923		—		9,923		—
U.S. Government agency bonds		24,065		—		24,065		—
Corporate bonds		35,587		—		35,587		—
Total marketable securities		126,449		—		126,449		—
Total financial assets	$	305,032	$	153,306	$	151,726	$	—


As of December 31, 2022	Total		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Financial assets:
Money market funds (1)	$	306,097	$	306,097	$	—	$	—
Total financial assets	$	306,097	$	306,097	$	—	$	—

(1) Included in cash and cash equivalents on the Consolidated Balance Sheets.

(2) Marketable securities are initially valued at their purchase price and subsequently fair valued at the end of each reporting period utilizing third party pricing services or other observable data. The pricing services utilize industry standard valuation methods, including both income and market-based approaches and observable market inputs to determine the fair value. These observable market inputs include reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, current spot rates, and other industry and economic events.

Nonrecurring Fair Value Measurements

On June 26, 2023, the Company received ordinary shares in UltraDx (refer to Note 3 − Revenue and Related Matters) which were valued at $1.0 million upon receipt, primarily using the third-party purchase price of similar interests issued during UltraDx’s financing event that closed in the second quarter of 2023. As UltraDx is a recently formed, privately held entity, there was minimal market activity or other financial information available to determine the fair value of UltraDx’s shares and therefore this investment is considered a Level 3 financial asset. Changes in the inputs and assumptions used would have resulted in a higher or lower fair value measurement.

Pursuant to ASC 321 – Investments – Equity Securities, the Company has elected the measurement alternative for equity investments without readily determinable fair values and will continue to recognize the UltraDx shares at cost, less any impairment, and adjusted for any observable price changes in orderly transactions.

During the third quarter of 2023, the Company recorded an immaterial adjustment to the fair value of the UltraDx shares. There were no other changes in the carrying value of these assets during the three and nine months ended September 30, 2023 and 2022. As of September 30, 2023 and December 31, 2022, the carrying value of the Company’s Level 3 financial assets was $1.1 million and $0.3 million, respectively, and are included in other non-current assets on the Consolidated Balance Sheets. Refer to Note 16 − Variable Interest Entities for further discussion.

Other Fair Value Disclosures

During the nine months ended September 30, 2023 and 2022, the Company did not transfer financial assets between levels of the fair value hierarchy. Additionally, there have been no changes to the valuation techniques for Level 2 or Level 3 financial assets.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2023 shares
Laurie Olson [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On August 14, 2023, Laurie Olson, a member of our Board of Directors, adopted a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Securities Exchange Act of 1934 (the “Exchange Act”). The Rule 10b5-1 trading plan provides for the potential sale of up to 5,694 shares of our common stock and the potential exercise of vested stock options and the associated sale of up to 4,306 shares of our common stock. The plan will terminate at the earlier of the execution of all trading orders under the plan or November 13, 2024.
Name	Laurie Olson
Title	Board of Directors
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	August 14, 2023
Martin Madaus [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On August 14, 2023, The Martin D. Madaus GST Exempt 2012 Irrevocable Trust, of which Martin Madaus, a member of our Board of Directors, is a trust advisor who shares voting and investment power over the shares held by the trust, adopted a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. The Rule 10b5-1 trading plan provides for the potential sale of up to 34,000 shares of our common stock. The plan will terminate at the earlier of the execution of all trading orders under the plan or May 17, 2024.
Name	Martin Madaus
Title	Board of Directors
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	August 14, 2023
Aggregate Available	34,000
Exercise of Stock Options Arrangement [Member] \| Laurie Olson [Member]
Trading Arrangements, by Individual
Aggregate Available	4,306
Sale of Stock Arrangement [Member] \| Laurie Olson [Member]
Trading Arrangements, by Individual
Aggregate Available	5,694

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
CONSOLIDATED BALANCE SHEETS
Accounts receivable, reserve for doubtful accounts	$ 429	$ 118
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized shares	120,000	120,000
Common stock, shares issued	37,839	37,280
Common stock, shares outstanding	37,839	37,280

Inventory (Tables)

9 Months Ended

Sep. 30, 2023

Inventory

Summary of inventory

Inventory, net of inventory reserves, consisted of the following (in thousands):


	September 30, 2023			December 31, 2022
Raw materials	$	5,125	$	5,509
Work in process		4,907		3,362
Finished goods		9,913		7,915
Total inventory	$	19,945	$	16,786

Net Loss Per Share (Tables)

9 Months Ended

Sep. 30, 2023

Net Loss Per Share

Schedule of basic and diluted shares


	Three Months Ended September 30,				Nine Months Ended September 30,
		2023		2022		2023		2022
Numerator:
Net loss	$	(7,758)	$	(35,064)	$	(19,925)	$	(78,119)
Denominator:
Weighted average common shares outstanding		37,657		37,005		37,494		36,927

Net loss per share, basic and diluted	$	(0.21)	$	(0.95)	$	(0.53)	$	(2.12)

Schedule of common share equivalents have been excluded from the calculation of diluted net loss per share


	Three Months Ended September 30,			Nine Months Ended September 30,
		2023	2022	2023	2022
Common stock and RSUs		1,522	902	1,545	807
Stock options		2,760	2,503	2,793	2,423
Total anti-dilutive shares		4,282	3,405	4,338	3,230

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net loss	$ (19,925)	$ (78,119)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense	4,788	4,186
Credit losses on accounts receivable	311	102
Foreign currency losses	359	167
Unrealized losses on marketable securities	(241)
Amortization of (discount) premium on marketable securities	(1,249)
Operating lease right-of-use asset amortization	1,518	1,099
Stock-based compensation expense	12,438	11,779
Impairment		16,915
Deferred income taxes	242	(134)
Loss on disposal of fixed assets	46	6
Changes in assets and liabilities:
Accounts receivable	(5,615)	5,045
Inventory	(2,966)	3,919
Prepaid expenses and other current assets	(2,829)	(262)
Other non-current assets	(716)	(859)
Accounts payable	948	(7,085)
Accrued compensation and benefits, accrued expenses, and other current liabilities	876	(3,021)
Deferred revenue	894	3,108
Operating lease liabilities	(1,690)	(1,156)
Other non-current liabilities	(107)	128
Net cash used in operating activities	(12,918)	(44,182)
Cash flows from investing activities:
Purchases of marketable securities	(125,200)
Purchases of property and equipment	(1,572)	(10,131)
Proceeds from RADx grant on assets purchased		520
Net cash used in investing activities	(126,772)	(9,611)
Cash flows from financing activities:
Proceeds from common stock issued under stock plans	2,632	1,597
Payments for employee taxes withheld on stock-based compensation awards	(142)
Net cash provided by financing activities	2,490	1,597
Net decrease in cash, cash equivalents, and restricted cash	(137,200)	(52,196)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(229)	(507)
Cash, cash equivalents, and restricted cash at beginning of period	341,337	399,042
Cash, cash equivalents, and restricted cash at end of period	203,908	346,339
Supplemental disclosure of cash flow information:
Cash paid for taxes	719	263
Operating lease right-of-use assets obtained in exchange for lease liabilities		$ 22,239
Shares received as consideration under product sales agreement (Note 3, 6)	$ 775

Stock-Based Compensation

9 Months Ended

Sep. 30, 2023

Stock-Based Compensation

Stock-Based Compensation

Note 9. Stock-Based Compensation

Stock Options

Stock option activity for the nine months ended September 30, 2023 is presented below (in thousands, except per share and contractual life amounts):


				Weighted-average
		Weighted-average		remaining contractual	Aggregate
	Number of shares	exercise price per share		life (in years)	intrinsic value
Outstanding at December 31, 2022	2,188	$	20.69	8.1	$	4,273
Granted	1,102		15.74
Exercised	(132)		12.37
Cancelled	(418)		18.51
Outstanding at September 30, 2023	2,740	$	19.43	8.1	$	26,822
Exercisable at September 30, 2023	967	$	23.71	6.3	$	7,260
Vested and expected to vest at September 30, 2023	2,740	$	19.43	8.1	$	26,822

Restricted Stock Units

Restricted stock unit (“RSU”) activity for the nine months ended September 30, 2023 is presented below (in thousands, except per share and contractual life amounts):


		Weighted-average		Weighted-average
		grant date fair		remaining contractual	Aggregate
	Number of shares	value per share		life (in years)	intrinsic value
Unvested RSUs at December 31, 2022	1,188	$	21.18	9.6	$	16,455
Granted	812		15.49
Vested	(306)		24.52
Cancelled	(258)		17.59
Unvested RSUs at September 30, 2023	1,436	$	17.90	9.1	$	38,976
Expected to convert at September 30, 2023	1,436	$	17.90	9.1	$	38,976

Employee Stock Purchase Plan (“ESPP”)

In December 2017, the Company adopted the 2017 Employee Stock Purchase Plan (the “2017 ESPP”). The 2017 ESPP contains an “evergreen” provision, which allows for an increase in the number of shares under the plan on the first day of each fiscal year beginning with 2018. The increase is equal to the lower of: (i) 1% of the number of shares of common stock outstanding on the last day of the immediately preceding fiscal year and (ii) an amount determined by the Company’s Board of Directors or Compensation Committee. On January 3, 2023, the number of shares of common stock available for issuance under the 2017 ESPP was increased by 372 thousand shares.

The 2017 ESPP provides for six-month offering periods commencing and ending as follows: March 1 through August 31, and September 1 through February 28. During the nine months ended September 30, 2023, employees purchased 121 thousand shares of the Company’s common stock pursuant to the 2017 ESPP.

Stock-Based Compensation Expense

Stock-based compensation expense was recorded in the following categories on the Consolidated Statements of Operations (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Cost of product revenue	$	224	$	199	$	611	$	424
Cost of service and other revenue		259		159		867		530
Research and development		449		320		1,224		1,200
Selling, general, and administrative		3,411		2,088		9,736		9,625
Total stock-based compensation	$	4,343	$	2,766	$	12,438	$	11,779

As of September 30, 2023, there was $37.4 million of total unrecognized stock-based compensation expense related to unvested RSUs and stock options, which is expected to be recognized over the remaining weighted-average vesting period of 2.8 years.

The fair value of the Company’s stock options granted and purchase rights to the ESPP were estimated using the Black-Scholes valuation model with the following assumptions:


	Three Months Ended September 30,				Nine Months Ended September 30,
		2023		2022		2023		2022
Stock Options:
Risk-free interest rate		4.0% − 4.4%		2.7% − 3.9%		3.5% − 4.4%		1.4% − 3.9%
Expected dividend yield		None		None		None		None
Expected term (in years)		5.1		5.5 − 5.7		5.0 − 5.1		5.5 − 5.8
Expected volatility		82.6% − 83.1%		62.6% − 69.8%		71.1% − 83.1%		55.0% − 69.8%

Weighted-average grant date fair value	$	16.82	$	5.80	$	10.25	$	10.28

Employee Stock Purchase Plan:
Risk-free interest rate		5.5%		3.3% - 3.9%		5.2% - 5.5%		0.7% - 3.9%
Expected dividend yield		None		None		None		None
Expected term (in years)		0.5		0.5		0.5		0.5
Expected volatility		74.7% − 78.5%		115.3% − 117.3%		72.8% − 82.5%		51.9% − 117.3%

Weighted-average grant date fair value	$	4.39	$	3.02	$	2.63	$	3.85

Accrued Expenses and Other Current Liabilities (Tables)

9 Months Ended

Sep. 30, 2023

Accrued Expenses and Other Current Liabilities

Summary of Accrued expenses and other current liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):


	September 30, 2023			December 31, 2022
Accrued professional services	$	1,761	$	1,409
Accrued royalties		1,372		815
Accrued tax liabilities		1,716		172
Other accrued expenses		1,823		2,737
Total accrued expenses and other current liabilities	$	6,672	$	5,133

Commitments and contingencies (Tables)

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies

Schedule of future minimum lease payments


Maturity of lease liabilities	As of September 30, 2023
2023 (remainder)	$	1,746
2024		7,064
2025		7,228
2026		7,408
2027		7,641
2028		7,880
Thereafter		15,741
Total lease payments		54,708
Less: imputed interest		12,309
Total operating lease liabilities	$	42,399

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2023	Nov. 02, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity Registrant Name	Quanterix Corp
Entity File Number	001-38319
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-8957988
Entity Address, Address Line One	900 Middlesex Turnpike
Entity Address, City or Town	Billerica
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01821
City Area Code	617
Local Phone Number	301-9400
Title of 12(g) Security	Common Stock, $0.001 par value per share
Trading Symbol	QTRX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		37,829,746
Entity Central Index Key	0001503274
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

Variable Interest Entities

9 Months Ended

Sep. 30, 2023

Variable Interest Entities

Variable Interest Entities

Note 16. Variable Interest Entities

The Company enters into relationships with, or has investments in, other entities that may be VIEs. The Company assesses the criteria in ASC 810 – Consolidation to determine if any of these entities meet the definition of a VIE and require consolidation into its financial statements. The Company’s analysis determines whether it has a controlling financial interest and also identifies the primary beneficiary of a VIE as the enterprise that has both (1) the power to direct activities of a VIE that most significantly impact the entity’s economic performance and (2) the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to that entity.

As discussed in Note 3 − Revenue and Related Matters, during the second quarter of 2023 the Company received one million ordinary shares of UltraDx under the UltraDx Agreement. Primarily due to having less than a 5% ownership interest in UltraDx, the Company concluded that it does not have the power to direct activities impacting UltraDx’s economic performance and therefore the Company is not the primary beneficiary of the VIE.

Based on the Company’s assessments, it does not have any controlling financial interests in any VIEs, and therefore did not consolidate any VIEs into its Consolidated Financial Statements during the three and nine months ended September 30, 2023 and 2022.

As of September 30, 2023 and December 31, 2022, the carrying value of the Company’s investment interests in VIEs was $1.1 million and $0.3 million, respectively, which are recorded in other non-current assets on the Consolidated Balance Sheets. Refer to Note 6 − Fair Value of Financial Instruments for the Company’s related valuation disclosures. Maximum exposure to losses related to these VIEs is limited to their carrying value and the Company does not have any future funding commitments to these VIEs.

Revenue and Related Matters - Disaggregated revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Service Revenue
Total revenues	$ 31,334	$ 26,646	$ 90,819	$ 79,698
NA
Service Revenue
Total revenues	19,812	16,659	57,021	49,778
EMEA
Service Revenue
Total revenues	7,582	7,270	22,901	21,782
Asia Pacific
Service Revenue
Total revenues	3,940	2,717	10,897	8,138
Product revenue
Service Revenue
Total revenues	19,660	17,693	58,639	53,134
Product revenue \| NA
Service Revenue
Total revenues	10,403	9,226	30,857	27,416
Product revenue \| EMEA
Service Revenue
Total revenues	5,912	5,955	18,351	18,142
Product revenue \| Asia Pacific
Service Revenue
Total revenues	3,345	2,512	9,431	7,576
Instruments
Service Revenue
Total revenues	3,657	7,763	12,402	19,589
Instruments \| NA
Service Revenue
Total revenues	1,693	2,964	4,879	7,602
Instruments \| EMEA
Service Revenue
Total revenues	707	3,115	3,659	7,288
Instruments \| Asia Pacific
Service Revenue
Total revenues	1,257	1,684	3,864	4,699
Consumable and other products
Service Revenue
Total revenues	16,003	9,930	46,237	33,545
Consumable and other products \| NA
Service Revenue
Total revenues	8,710	6,262	25,978	19,814
Consumable and other products \| EMEA
Service Revenue
Total revenues	5,205	2,840	14,692	10,854
Consumable and other products \| Asia Pacific
Service Revenue
Total revenues	2,088	828	5,567	2,877
Service revenue
Service Revenue
Total revenues	10,938	8,370	30,069	25,728
Service revenue \| NA
Service Revenue
Total revenues	8,673	7,015	24,053	21,826
Service revenue \| EMEA
Service Revenue
Total revenues	1,670	1,150	4,550	3,392
Service revenue \| Asia Pacific
Service Revenue
Total revenues	595	205	1,466	510
Research services
Service Revenue
Total revenues	7,740	5,595	20,763	17,670
Research services \| NA
Service Revenue
Total revenues	6,690	5,246	18,200	16,853
Research services \| EMEA
Service Revenue
Total revenues	617	305	1,562	752
Research services \| Asia Pacific
Service Revenue
Total revenues	433	44	1,001	65
Other services
Service Revenue
Total revenues	632	493	1,877	1,610
Other services \| NA
Service Revenue
Total revenues	388	315	1,142	916
Other services \| EMEA
Service Revenue
Total revenues	243	142	719	590
Other services \| Asia Pacific
Service Revenue
Total revenues	1	36	16	104
Service-type warranties
Service Revenue
Total revenues	2,566	2,282	7,429	6,448
Service-type warranties \| NA
Service Revenue
Total revenues	1,595	1,454	4,711	4,057
Service-type warranties \| EMEA
Service Revenue
Total revenues	810	703	2,269	2,050
Service-type warranties \| Asia Pacific
Service Revenue
Total revenues	161	125	449	341
Collaboration and license revenue
Service Revenue
Total revenues	237	301	1,234	479
Collaboration and license revenue \| NA
Service Revenue
Total revenues	237	136	1,234	179
Collaboration and license revenue \| EMEA
Service Revenue
Total revenues		165		248
Collaboration and license revenue \| Asia Pacific
Service Revenue
Total revenues				52
Grant revenue
Service Revenue
Total revenues	499	282	877	357
Grant revenue \| NA
Service Revenue
Total revenues	$ 499	$ 282	$ 877	$ 357

Variable Interest Entities (Details) - USD ($) $ in Thousands, shares in Millions	3 Months Ended
	Jun. 30, 2023	Sep. 30, 2023	Dec. 31, 2022
Other non-current assets		$ 2,004	$ 1,298
UltraDx Limited Company
Number of contingent consideration collaboration	1
Variable Interest Entity, Not Primary Beneficiary
Other non-current assets		$ 1,100	$ 300
Variable Interest Entity, Not Primary Beneficiary \| UltraDx Limited Company
Number of contingent consideration collaboration	1
Ownership interest	5.00%

Net Loss Per Share

9 Months Ended

Sep. 30, 2023

Net Loss Per Share

Net Loss Per Share

Note 10. Net Loss Per Share

The following table presents the computation of basic and diluted net loss per share (in thousands, except per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
		2023		2022		2023		2022
Numerator:
Net loss	$	(7,758)	$	(35,064)	$	(19,925)	$	(78,119)
Denominator:
Weighted average common shares outstanding		37,657		37,005		37,494		36,927

Net loss per share, basic and diluted	$	(0.21)	$	(0.95)	$	(0.53)	$	(2.12)

In periods when the Company is in a net loss position, dilutive securities are excluded from the computation of diluted earnings per share because their inclusion would have an anti-dilutive effect. Therefore, basic net loss per share is the same as diluted net loss per share.

The following common share equivalents have been excluded from the calculation of diluted net loss per share (in thousands):


	Three Months Ended September 30,			Nine Months Ended September 30,
		2023	2022	2023	2022
Common stock and RSUs		1,522	902	1,545	807
Stock options		2,760	2,503	2,793	2,423
Total anti-dilutive shares		4,282	3,405	4,338	3,230

Commitments and Contingencies - License agreements and Lease commitments (Details) - License agreements - USD ($) $ in Millions	1 Months Ended	3 Months Ended		9 Months Ended
	Aug. 31, 2022	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
License agreements
Royalty expense		$ 0.0	$ 0.0	$ 0.0	$ 0.0
Tufts
License agreements
Royalty expense		$ 0.5	$ 0.3	$ 1.3	$ 1.1
Harvard University
License agreements
Upfront Fee	$ 0.6

Goodwill

9 Months Ended

Sep. 30, 2023

Goodwill.

Goodwill

Note 12. Goodwill

During the third quarter of 2022, the Company identified certain indicators of impairment, including a significant decline in the Company’s stock price, actions taken under the Restructuring Plan (refer to Note 15 − Restructuring), and a reduction of forecasted sales and profitability. As a result, the Company performed a goodwill impairment test and determined its goodwill was impaired as the carrying amount of the Company’s sole reporting unit exceeded its estimated fair value. The Company concluded that its entire goodwill balance was impaired and recognized an $8.2 million impairment charge during the third quarter of 2022.

As of September 30, 2023 and December 31, 2022, the Company had no remaining goodwill balance.

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2023

Stock-Based Compensation

Summary of share-based compensation expense for all stock awards

Stock-based compensation expense was recorded in the following categories on the Consolidated Statements of Operations (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Cost of product revenue	$	224	$	199	$	611	$	424
Cost of service and other revenue		259		159		867		530
Research and development		449		320		1,224		1,200
Selling, general, and administrative		3,411		2,088		9,736		9,625
Total stock-based compensation	$	4,343	$	2,766	$	12,438	$	11,779

Summary of stock option activity

Stock Options

Stock option activity for the nine months ended September 30, 2023 is presented below (in thousands, except per share and contractual life amounts):


				Weighted-average
		Weighted-average		remaining contractual	Aggregate
	Number of shares	exercise price per share		life (in years)	intrinsic value
Outstanding at December 31, 2022	2,188	$	20.69	8.1	$	4,273
Granted	1,102		15.74
Exercised	(132)		12.37
Cancelled	(418)		18.51
Outstanding at September 30, 2023	2,740	$	19.43	8.1	$	26,822
Exercisable at September 30, 2023	967	$	23.71	6.3	$	7,260
Vested and expected to vest at September 30, 2023	2,740	$	19.43	8.1	$	26,822

Summary of restricted stock units activity

Restricted Stock Units

Restricted stock unit (“RSU”) activity for the nine months ended September 30, 2023 is presented below (in thousands, except per share and contractual life amounts):


		Weighted-average		Weighted-average
		grant date fair		remaining contractual	Aggregate
	Number of shares	value per share		life (in years)	intrinsic value
Unvested RSUs at December 31, 2022	1,188	$	21.18	9.6	$	16,455
Granted	812		15.49
Vested	(306)		24.52
Cancelled	(258)		17.59
Unvested RSUs at September 30, 2023	1,436	$	17.90	9.1	$	38,976
Expected to convert at September 30, 2023	1,436	$	17.90	9.1	$	38,976

Summary of fair value of the Company's stock options granted and purchase rights to the ESPP

The fair value of the Company’s stock options granted and purchase rights to the ESPP were estimated using the Black-Scholes valuation model with the following assumptions:


	Three Months Ended September 30,				Nine Months Ended September 30,
		2023		2022		2023		2022
Stock Options:
Risk-free interest rate		4.0% − 4.4%		2.7% − 3.9%		3.5% − 4.4%		1.4% − 3.9%
Expected dividend yield		None		None		None		None
Expected term (in years)		5.1		5.5 − 5.7		5.0 − 5.1		5.5 − 5.8
Expected volatility		82.6% − 83.1%		62.6% − 69.8%		71.1% − 83.1%		55.0% − 69.8%

Weighted-average grant date fair value	$	16.82	$	5.80	$	10.25	$	10.28

Employee Stock Purchase Plan:
Risk-free interest rate		5.5%		3.3% - 3.9%		5.2% - 5.5%		0.7% - 3.9%
Expected dividend yield		None		None		None		None
Expected term (in years)		0.5		0.5		0.5		0.5
Expected volatility		74.7% − 78.5%		115.3% − 117.3%		72.8% − 82.5%		51.9% − 117.3%

Weighted-average grant date fair value	$	4.39	$	3.02	$	2.63	$	3.85

Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2023

Significant Accounting Policies

Schedule of cash and cash equivalents


	As of September 30,
	2023		2022
Cash and cash equivalents	$	201,261	$	343,743
Restricted cash (1)		2,647		2,596
Cash, cash equivalents, and restricted cash	$	203,908	$	346,339

Revenue and Related Matters (Tables)

9 Months Ended

Sep. 30, 2023

Revenue and Related Matters

Schedule of disaggregated revenue

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


	Three Months Ended September 30, 2023								Three Months Ended September 30, 2022
	North America		EMEA		Asia Pacific		Total		North America		EMEA		Asia Pacific		Total
Product revenue
Instruments	$	1,693	$	707	$	1,257	$	3,657	$	2,964	$	3,115	$	1,684	$	7,763
Consumable and other products		8,710		5,205		2,088		16,003		6,262		2,840		828		9,930
Total	$	10,403	$	5,912	$	3,345	$	19,660	$	9,226	$	5,955	$	2,512	$	17,693

Service revenue
Service-type warranties	$	1,595	$	810	$	161	$	2,566	$	1,454	$	703	$	125	$	2,282
Research services		6,690		617		433		7,740		5,246		305		44		5,595
Other services		388		243		1		632		315		142		36		493
Total	$	8,673	$	1,670	$	595	$	10,938	$	7,015	$	1,150	$	205	$	8,370

Collaboration and license revenue	$	237	$	—	$	—	$	237	$	136	$	165	$	—	$	301

Grant revenue	$	499	$	—	$	—	$	499	$	282	$	—	$	—	$	282

Total revenues	$	19,812	$	7,582	$	3,940	$	31,334	$	16,659	$	7,270	$	2,717	$	26,646


	Nine Months Ended September 30, 2023								Nine Months Ended September 30, 2022
	North America		EMEA		Asia Pacific		Total		North America		EMEA		Asia Pacific		Total
Product revenue
Instruments	$	4,879	$	3,659	$	3,864	$	12,402	$	7,602	$	7,288	$	4,699	$	19,589
Consumable and other products		25,978		14,692		5,567		46,237		19,814		10,854		2,877		33,545
Total	$	30,857	$	18,351	$	9,431	$	58,639	$	27,416	$	18,142	$	7,576	$	53,134

Service revenue
Service-type warranties	$	4,711	$	2,269	$	449	$	7,429	$	4,057	$	2,050	$	341	$	6,448
Research services		18,200		1,562		1,001		20,763		16,853		752		65		17,670
Other services		1,142		719		16		1,877		916		590		104		1,610
Total	$	24,053	$	4,550	$	1,466	$	30,069	$	21,826	$	3,392	$	510	$	25,728

Collaboration and license revenue	$	1,234	$	—	$	—	$	1,234	$	179	$	248	$	52	$	479

Grant revenue	$	877	$	—	$	—	$	877	$	357	$	—	$	—	$	357

Total revenues	$	57,021	$	22,901	$	10,897	$	90,819	$	49,778	$	21,782	$	8,138	$	79,698

Schedule of costs to obtain a contract


	2023		2022
Balance at December 31 of prior year	$	377	$	440
Deferral of costs to obtain a contract		414		1,182
Amortization of costs to obtain a contract		(491)		(914)
Balance at September 30	$	300	$	708

Accrued Expenses and Other Current Liabilities

9 Months Ended

Sep. 30, 2023

Accrued Expenses and Other Current Liabilities

Accrued Expenses and Other Current Liabilities

Note 8. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):


	September 30, 2023			December 31, 2022
Accrued professional services	$	1,761	$	1,409
Accrued royalties		1,372		815
Accrued tax liabilities		1,716		172
Other accrued expenses		1,823		2,737
Total accrued expenses and other current liabilities	$	6,672	$	5,133

Organization and Nature of Business

9 Months Ended

Sep. 30, 2023

Organization and Nature of Business

Organization and Nature of Business

QUANTERIX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 1. Organization and Nature of Business

Quanterix Corporation (“Quanterix” or the “Company”) is a life sciences company that has developed next generation, ultra-sensitive digital immunoassay platforms that advance precision health for life sciences research and diagnostics. The Company’s platforms are based on its proprietary digital “Simoa” detection technology. The Company’s Simoa bead-based and planar array platforms enable customers to reliably detect protein biomarkers in extremely low concentrations in blood, serum, and other fluids that, in many cases, are undetectable using conventional, analog immunoassay technologies, and also allow researchers to define and validate the function of novel protein biomarkers that are only present in very low concentrations. The Company is currently focusing on protein detection, but its Simoa platforms have also demonstrated applicability across other testing applications, including detection of nucleic acids and small molecules.

The Company also provides contract research services for customers and Laboratory Developed Test (“LDT”) services through its CLIA-certified Accelerator Laboratory (the “Accleerator Laboratory”). The Accelerator Laboratory provides customers with access to Simoa technology and supports multiple projects and services, including sample testing, homebrew assay development, custom assay development, and blood-based biomarker testing. To date, the Company has completed over 2,200 projects for more than 470 customers from all over the world using its Simoa platforms.

Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Inventory
Raw Materials	$ 5,125	$ 5,509
Work in process	4,907	3,362
Finished goods	9,913	7,915
Total inventory	$ 19,945	$ 16,786

Revenue and Related Matters - Deferred Revenue (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Revenue and Related Matters
Deferred Revenue, Revenue Recognized	$ 6.4	$ 4.7

Revenue and Related Matters - Collaboration and license arrangements (Details) - USD ($) $ in Thousands, shares in Millions	3 Months Ended			9 Months Ended		12 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2020
Collaboration and license arrangements
Revenue	$ 31,334		$ 26,646	$ 90,819	$ 79,698
UltraDx
Collaboration and license arrangements
Revenue			1,900	$ 1,600	1,900
Consideration on collaboration activities			1,900
Shares amount received			1,000		1,000
Number of contingent consideration collaboration		1
Abbot license agreement
Collaboration and license arrangements
Number of days notice to terminate agreement				60 days
Initial license fee receivable						$ 10,000
Revenue	0			$ 500
Collaboration and license revenue
Collaboration and license arrangements
Revenue	$ 237		$ 301	$ 1,234	$ 479

Fair value of financial instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Cash equivalents - money market funds	$ 178,583
Marketable securities	126,449	$ 0
Total Financial Assets	305,032	306,097
Money market funds
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Cash equivalents - money market funds	153,306	306,097
Commercial paper
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Cash equivalents - money market funds	19,006
Marketable securities	56,874
U.S. Treasuries
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Cash equivalents - money market funds	6,271
Marketable securities	9,923
U.S. Government agencies
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Marketable securities	24,065
Corporate bonds
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Marketable securities	35,587
Level 1
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Cash equivalents - money market funds	153,306
Total Financial Assets	153,306	306,097
Level 1 \| Money market funds
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Cash equivalents - money market funds	153,306	$ 306,097
Level 2
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Cash equivalents - money market funds	25,277
Marketable securities	126,449
Total Financial Assets	151,726
Level 2 \| Commercial paper
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Cash equivalents - money market funds	19,006
Marketable securities	56,874
Level 2 \| U.S. Treasuries
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Cash equivalents - money market funds	6,271
Marketable securities	9,923
Level 2 \| U.S. Government agencies
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Marketable securities	24,065
Level 2 \| Corporate bonds
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Marketable securities	$ 35,587

Fair value of financial instruments - Changes in Level 3 Financial Instruments (Details) $ in Millions	Jun. 26, 2023 USD ($)
Changes in the Company's Level 3 financial instruments
Receipt of ordinary shares of UltraDx (Note 13)	$ 1.0

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 201,261	$ 338,740
Marketable securities	126,449	0
Accounts receivable (net of allowance for expected credit losses of $429 and $118 as of September 30, 2023 and December 31, 2022, respectively)	24,083	19,017
Inventory	19,945	16,786
Prepaid expenses and other current assets	9,273	6,860
Total current assets	381,011	381,403
Restricted cash	2,647	2,597
Property and equipment, net	17,517	20,162
Intangible assets, net	6,003	7,516
Operating lease right-of-use assets	19,860	21,223
Other non-current assets	2,004	1,298
Total assets	429,042	434,199
Current liabilities:
Accounts payable	4,786	3,836
Accrued compensation and benefits	9,775	10,658
Accrued expenses and other current liabilities	6,672	5,133
Deferred revenue	9,827	8,644
Operating lease liabilities	4,093	2,687
Total current liabilities	35,153	30,958
Deferred revenue, net of current portion	1,126	1,415
Operating lease liabilities, net of current portion	38,306	41,417
Other non-current liabilities	1,105	1,469
Total liabilities	75,690	75,259
Commitments and contingencies (Note 13)
Stockholders' equity:
Common stock, $0.001 par value, per share: Authorized shares: 120,000; Issued and outstanding: 37,839 and 37,280 shares at September 30, 2023 and December 31, 2022, respectively	38	37
Additional paid-in capital	778,615	763,688
Accumulated other comprehensive loss	(3,214)	(2,623)
Accumulated deficit	(422,087)	(402,162)
Total stockholders' equity	353,352	358,940
Total liabilities and stockholders' equity	$ 429,042	$ 434,199

Revenue and Related Matters - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Revenue and Related Matters
Contract with Customer, Asset, after Allowance for Credit Loss	$ 0	$ 0

Related Party Transactions

9 Months Ended

Sep. 30, 2023

Related Party Transactions

Related Party Transactions

Note 14. Related Party Transactions

In June 2007, the Company and Tufts entered into the Tufts License Agreement for certain intellectual property owned by Tufts (refer to Note 13 − Commitments and Contingencies). A member of the Company’s Board of Directors was previously affiliated with Tufts. This Board member continues to receive compensation from Tufts on a formulaic basis based on royalties and license payments the Company makes to Tufts. At September 30, 2023 and December 31, 2022, open payable balances to Tufts were not material.

A member of the Company’s Board of Directors is affiliated with Harvard and Mass General Brigham. Revenue recorded from sales of products and services to Harvard and its affiliates and to Mass General Brigham and its affiliates totaled $0.3 million and $1.0 million for the three and nine months ended September 30, 2023, respectively. Revenue recorded from sales of products and services was not material for the three months ended September 30, 2022, and $0.5 million for the nine months ended September 30, 2022.

Additionally, in August 2022, the Company and Harvard entered into the Harvard License Agreement for certain intellectual property owned by Harvard (refer to Note 13 − Commitments and Contingencies). Harvard is obligated to pay a portion of the payments received from the Company under the Harvard License Agreement to a member of the Company’s Board of Directors.

Cost of product revenue and operating expenses with Harvard and its affiliates and Mass General Brigham and its affiliates for the three and nine months ended September 30, 2023 and 2022 were not material. At September 30, 2023 and December 31, 2022, open payables to and receivable balances from Harvard and Mass General Brigham were not material.

As discussed in Note 3 − Revenue and Related Matters, on May 26, 2022, the Company and UltraDx, a company formed by ARCH, entered into the UltraDx Agreement to supply certain instruments and to grant certain licenses. At contract inception, the Company determined that UltraDx was a related party because a member of the Company’s Board of Directors was affiliated with ARCH and UltraDx. As of June 7, 2023, this individual was no longer a member of the Company’s Board of Directors. Cost of goods sold for both the three and nine months ended September 30, 2023 were not material. At September 30, 2023 and December 31, 2022, there were no open payable balances to UltraDx and open receivable balances from UltraDx were $0.4 million and zero, respectively.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
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+ Details

Related Party Transactions (Details) - USD ($)	3 Months Ended		9 Months Ended
Related Party Transactions (Details) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Related party transactions
Cost of revenue	$ 13,551,000	$ 15,702,000	$ 36,972,000	$ 45,484,000
Accounts receivable	24,083,000		24,083,000		$ 19,017,000
Accounts payable	4,786,000		4,786,000		3,836,000
Selling, General and Administrative Expense	23,595,000	19,966,000	66,069,000	72,723,000
Commitment to sponsor agreement
Product revenue
Related party transactions
Cost of revenue	8,342,000	10,511,000	22,611,000	31,178,000
Service revenue.
Related party transactions
Cost of revenue	5,209,000	5,191,000	14,361,000	14,306,000
Harvard University
Related party transactions
Related party revenue	300,000	$ 0	1,000,000.0	$ 500,000
UltraDx
Related party transactions
Accounts receivable	400,000		400,000		0
Accounts payable	$ 0		$ 0		$ 0

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net loss	$ (7,758)	$ (35,064)	$ (19,925)	$ (78,119)
Other comprehensive loss, net of tax:
Unrealized losses on marketable securities	(241)		(241)
Foreign currency translation	(148)	(796)	(350)	(3,440)
Total other comprehensive loss	(389)	(796)	(591)	(3,440)
Comprehensive loss	$ (8,147)	$ (35,860)	$ (20,516)	$ (81,559)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Commitments and Contingencies

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies

Commitments and Contingencies

Note 13. Commitments and Contingencies

Purchase Commitments

Stratec

During the year ended December 31, 2022, the Company and Stratec Consumables GmbH (“Stratec”) entered into an amendment to the supply agreement with Stratec (as amended, the “Stratec Supply Agreement”), related to the supply of discs used in Simoa bead-based instruments. As part of the Stratec Supply Agreement, the Company agreed to purchase a total of 515 thousand discs to be shipped at various points starting in 2022 and continuing through 2024 at an agreed purchase price per disc. In 2022, Stratec shipped 75 thousand discs to the Company. In 2023, Stratec is required to ship no less than 220 thousand discs, 184 thousand of which have been shipped as of September 30, 2023. The total purchase commitment under the Stratec Supply Agreement is $3.7 million.

Other Purchase Commitments

The Company’s other non-cancellable purchase commitments primarily consist of purchases of raw materials for manufacturing operations under annual and multi-year agreements, some of which have minimum quantity requirements. The Company’s total purchase commitments under these agreements as of September 30, 2023 were $4.7 million.

License Agreements

Harvard University

In August 2022, the Company and Harvard University (“Harvard”) entered into a license agreement (the “Harvard License Agreement”) for certain intellectual property owned by Harvard. Pursuant to the Harvard License Agreement, the Company paid an upfront fee of $0.6 million in August 2022, which was recorded in research and development expenses on the Consolidated Statements of Operations. Under this license, the Company is required to pay Harvard low single-digit royalties on net sales of products and services using the licensed technology, as well as a portion of its applicable sublicense revenues. The Company incurred no royalty expense under the Harvard License Agreement for the three and nine months ended September 30, 2023 and 2022.

Refer to Note 14 − Related Party Transactions for a discussion of a related party relationship with Harvard.

Tufts University

In June 2007, the Company and Tufts University (“Tufts”) entered into a license agreement (the “Tufts License Agreement”) for certain intellectual property owned by Tufts. The Tufts License Agreement, which was subsequently amended, is exclusive and sub-licensable, 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 contractually obligated to pay license and maintenance fees that are creditable against royalties, in addition to low single-digit royalties on direct sales and services, and a royalty on sublicense income. The Company incurred royalty expenses related to the Tufts License Agreement of $0.5 million and $1.3 million during the three and nine months ended September 30, 2023, respectively and $0.3 million and $1.1 million during the three and nine months ended September 30, 2022, respectively, which are recorded in cost of product revenue on the Consolidated Statements of Operations.

Refer to Note 14 − Related Party Transactions for a discussion of a related party relationship with Tufts.

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 results of operations. The Company accrues for contingent liabilities when losses are probable and estimable. If an estimate of a probable loss is a range and no amount within the range is more likely than any other amount in the range, the Company accrues the minimum amount of the range.

Leases

Operating lease obligations are recorded in operating lease liabilities and operating lease liabilities, net of current portion on the Consolidated Balance Sheets.

Future minimum lease payments under non-cancellable operating leases were as follows (in thousands):


Maturity of lease liabilities	As of September 30, 2023
2023 (remainder)	$	1,746
2024		7,064
2025		7,228
2026		7,408
2027		7,641
2028		7,880
Thereafter		15,741
Total lease payments		54,708
Less: imputed interest		12,309
Total operating lease liabilities	$	42,399

The Company’s lease agreement for office and laboratory facilities in Bedford, Massachusetts included a tenant improvement allowance with the landlord that offset a portion of the Company’s construction costs. During the first quarter of 2023, the Company received the final tenant improvement allowance reimbursement of $0.9 million.

Commitments and Contingencies - Future minimum commitments (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Commitments and Contingencies
2023 (remainder)	$ 1,746
2024	7,064
2025	7,228
2026	7,408
2027	7,641
2028	7,880
Thereafter	15,741
Total lease payments	54,708
Less: imputed interest	12,309
Total operating lease liabilities	$ 42,399

Fair value of financial instruments - Changes in Carrying Value (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying value of the Company's Level 3 financial assets	$ 305,032		$ 305,032		$ 306,097
Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other changes in the carrying value of assets	0	$ 0	0	$ 0
Nonrecurring \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying value of the Company's Level 3 financial assets	$ 1,100		$ 1,100		$ 300

Restructuring

9 Months Ended

Sep. 30, 2023

Restructuring

Restructuring

Note 15. Restructuring

Following a strategic review and assessment of the Company’s operations and cost structure, on August 8, 2022, the Company announced a restructuring and strategic re-alignment plan (the “Restructuring Plan”). As part of the Restructuring Plan, the Company began an assay redevelopment program with the ultimate objective of improving its ability to manufacture and deliver high-quality assays at scale. The Restructuring Plan aligns the Company’s investments to best serve the needs of its customers, focuses the Company’s innovation efforts on key platforms, and provides a foundation for the Company’s entry into translational pharma and clinical markets, which it believes will be required to access new growth categories. In accordance with the Restructuring Plan, the Company implemented a workforce reduction, which was substantially completed by the end of the third quarter of 2022. The Restructuring Plan included the elimination of 119 positions and other cost-saving measures.

During the three and nine months ended September 30, 2022, the Company incurred approximately $3.4 million of expenses related to the Restructuring Plan, which were recorded in impairment and restructuring on the Consolidated Statements of Operations. These expenses were substantially for cash payments of severance and employee benefits, $3.1 million of which was paid by September 30, 2022.

Total restructuring expenses incurred in 2022 under the Restructuring Plan were $3.8 million.

As a result of the Restructuring Plan, the Company performed an impairment assessment of its goodwill, long-lived assets, including operating lease right-of-use assets, and intangibles. The assessments resulted in the Company recording an impairment charge of $16.9 million during the three and nine months ended September 30, 2022, which was recorded in impairment and restructuring on the Consolidated Statements of Operations. The impairment charge included (1) $8.2 million of goodwill (refer to Note 12 − Goodwill), (2) $7.7 million associated with the operating lease right-of-use asset and related property and equipment at leased facilities no longer being utilized, and (3) $1.0 million for software costs related to projects that were rationalized as part of the Restructuring Plan. During the nine months ended September 30, 2023, there were no material changes to the Restructuring Plan or the related exit and disposal costs.

The following table presents the restructuring reserve and provision activity for the nine months ended September 30, 2023 (in thousands):


	Severance and Employee Benefit Costs
Balance at December 31, 2022	$	328
Accrual adjustments		(33)
Cash payments		(16)
Foreign currency translation		(4)
Balance at September 30, 2023	$	275

The Company did not have any restructuring activities or additional impairment charges related to the Restructuring Plan during the nine months ended September 30, 2023.

Fair value of financial instruments (Tables)

9 Months Ended

Sep. 30, 2023

Fair value of financial instruments

Schedule of fair value measurements

Recurring Fair Value Measurements

The following tables present the Company’s fair value hierarchy for its financial assets that are measured at fair value on a recurring basis (in thousands):


As of September 30, 2023	Total		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Financial assets:
Cash equivalents: (1)
Money market funds	$	153,306	$	153,306	$	—	$	—
Commercial paper		19,006		—		19,006		—
U.S. Treasuries		6,271		—		6,271		—
Total cash equivalents:		178,583		153,306		25,277		—
Marketable securities: (2)
Commercial paper		56,874		—		56,874		—
U.S. Treasuries		9,923		—		9,923		—
U.S. Government agency bonds		24,065		—		24,065		—
Corporate bonds		35,587		—		35,587		—
Total marketable securities		126,449		—		126,449		—
Total financial assets	$	305,032	$	153,306	$	151,726	$	—


As of December 31, 2022	Total		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Financial assets:
Money market funds (1)	$	306,097	$	306,097	$	—	$	—
Total financial assets	$	306,097	$	306,097	$	—	$	—

Goodwill (Details) - USD ($) $ in Millions	3 Months Ended
Goodwill (Details) - USD ($) $ in Millions	Sep. 30, 2022	Sep. 30, 2023	Dec. 31, 2022
Changes in the carrying value of goodwill
Goodwill impairment	$ 8.2
Goodwill		$ 0.0	$ 0.0

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Net Loss Per Share - Basic and diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Net Loss Per Share
Net loss	$ (7,758)	$ (35,064)	$ (19,925)	$ (78,119)
Basic weighted average common shares outstanding	37,657	37,005	37,494	36,927
Diluted weighted average common shares outstanding	37,657	37,005	37,494	36,927
Basic net (loss) income per share	$ (0.21)	$ (0.95)	$ (0.53)	$ (2.12)
Diluted net (loss) income per share	$ (0.21)	$ (0.95)	$ (0.53)	$ (2.12)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Income Taxes

9 Months Ended

Sep. 30, 2023

Income Taxes

Income Taxes

Note 11. Income Taxes

The Company’s effective tax rates were (2.7)% and (3.0%)% for the three and nine months ended September 30, 2023, respectively, and 0.2% and less than 0.1% for the three and nine months ended September 30, 2022, respectively. The income tax provision and effective tax rate is driven primarily by a valuation allowance in the United States, partially offset by income taxes in foreign jurisdictions.

The Company maintains a valuation allowance on the majority of its deferred tax assets, and it has concluded that it is more likely than not that the deferred assets will not be utilized.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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-Name Accounting Standards Codification
-Section S99
-Paragraph 1
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2023

Allowance for Credit Losses

Schedule of the allowance for credit losses

The change in the allowance for credit losses on accounts receivable is summarized as follows (in thousands):


	2023		2022
Balance at December 31 of prior year	$	118	$	419
Provision for expected credit losses		605		102
Write-offs and recoveries collected		(294)		—
Balance at September 30	$	429	$	521

Revenue and Related Matters - Costs to obtain a contract (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Change in the balance of costs to obtain a contract
Balance at beginning of period	$ 377	$ 440
Deferral of costs to obtain a contract	414	1,182
Amortization of costs to obtain a contract	(491)	(914)
Balance at end of period	300	708
Impairment loss	$ 0	$ 0

Marketable Securities (Tables)

9 Months Ended

Sep. 30, 2023

INVESTMENT SECURITIES

Debt Securities, Available-for-Sale

The amortized cost, gross unrealized gains, gross unrealized losses, and fair value of the Company’s marketable securities by major security type were as follows (in thousands):


As of September 30, 2023	Amortized cost		Unrealized Gains		Unrealized Losses		Fair Value
Commercial paper	$	75,934	$	—	$	(55)	$	75,879
U.S. Treasuries		16,195		1		(1)		16,195
U.S. Government agency bonds		24,109		6		(50)		24,065
Corporate bonds		35,729		—		(142)		35,587
Total marketable securities	$	151,967	$	7	$	(248)	$	151,726

Marketable securities are reported in the following Consolidated Balance Sheets captions:
Cash and cash equivalents							$	25,277
Marketable securities								126,449
Total marketable securities							$	151,726

Unrealized Gain (Loss) on Investments


		Less Than 12 Months
As of September 30, 2023	Fair Value		Unrealized Losses
Commercial paper	$	75,879	$	(55)
U.S. Treasuries		5,940		(1)
U.S. Government agency bonds		13,328		(50)
Corporate bonds		35,587		(142)
Total	$	130,734	$	(248)

Investments Classified by Contractual Maturity Date

The following table summarizes the contractual maturities of the Company’s marketable securities (in thousands):


As of September 30, 2023	Amortized cost		Fair Value
Due within one year	$	110,743	$	110,670
Due in one to two years		41,224		41,056
Total	$	151,967	$	151,726

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
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-Section 50
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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

+ Details

Stock-Based Compensation - Stock options (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Number outstanding
Outstanding at the beginning of the period (in shares)	2,188
Granted (in shares)	1,102
Exercised (in shares)	(132)
Cancelled (in shares)	(418)
Outstanding at the end of the period (in shares)	2,740	2,188
Exercisable at the end of the period (in shares)	967
Vested and expected to vest at the end of the period (in shares)	2,740
Weighted-average exercise price
Outstanding at the beginning of the period (in dollars per share)	$ 20.69
Granted (in dollars per share)	15.74
Exercised (in dollars per share)	12.37
Cancelled (in dollars per share)	18.51
Outstanding at the end of the period (in dollars per share)	19.43	$ 20.69
Exercisable at the end of the period (in dollars per share)	23.71
Vested and expected to vest at the end of the period (in dollars per share)	$ 19.43
Weighted-average remaining contractual life
Outstanding (in years)	8 years 1 month 6 days	8 years 1 month 6 days
Exercisable at the end of the period (in years)	6 years 3 months 18 days
Vested and expected to vest at the end of the period (in years)	8 years 1 month 6 days
Aggregate intrinsic value
Outstanding	$ 26,822	$ 4,273
Exercisable at the end of the period	7,260
Vested and expected to vest at the end of the period	$ 26,822

Organization and Nature of Business (Details)	Sep. 30, 2023 customer project
Organization and Nature of Business
Entity Number of Projected completed \| project	2,200
Minimum
Organization and Nature of Business
Entity Number of Customers Served \| customer	470

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 505
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-Section 50
-Paragraph 13
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-Publisher FASB
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+ Details

Commitments and Contingencies - Purchase Commitments (Details) item in Thousands, $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended		36 Months Ended
	Mar. 31, 2023 USD ($)	Sep. 30, 2023 USD ($) item	Dec. 31, 2023 item	Dec. 31, 2022 item	Dec. 31, 2024 item
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Tenant improvements allowances \| $	$ 0.9
Stratec Supply Agreement
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Number of discs shipped \| item		184		75
Revenue from open purchase orders \| $		$ 3.7
Purchase commitments expects to incur in next year \| $		$ 4.7
Stratec Supply Agreement \| Forecast
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Number of discs purchased \| item					515
Number of discs shipped \| item			220

Stock-Based Compensation - Stock-based compensation plans (Details) - 2017 ESPP - shares shares in Thousands		9 Months Ended
	Jan. 03, 2023	Sep. 30, 2023	Dec. 31, 2022
Stock-based compensation
Employee stock purchase plan (in shares)		121
Annual increase in the shares available for grant under the plan (as a percent of shares of common stock outstanding)			1.00%
Increase in the shares available for grant under the plan (in shares)	372

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Revenue and Related Matters - Remaining Performance Obligations (Details) $ in Millions	Sep. 30, 2023 USD ($)
Transaction Price Allocated to Remaining Performance Obligations
Amount of transaction price allocated to performance obligations	$ 11.0
Undelivered licenses of intellectual property
Transaction Price Allocated to Remaining Performance Obligations
Amount of transaction price allocated to performance obligations	9.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Transaction Price Allocated to Remaining Performance Obligations
Amount of transaction price allocated to performance obligations	$ 9.8
Performance obligation satisfaction period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01
Transaction Price Allocated to Remaining Performance Obligations
Amount of transaction price allocated to performance obligations	$ 1.2
Performance obligation satisfaction period	21 months

Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2023

Significant Accounting Policies

Basis of Presentation

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

Use of Estimates

Foreign Currency

Principles of Consolidation

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

Presentation of Restricted Cash


	As of September 30,
	2023		2022
Cash and cash equivalents	$	201,261	$	343,743
Restricted cash (1)		2,647		2,596
Cash, cash equivalents, and restricted cash	$	203,908	$	346,339

Marketable Securities

Recent Accounting Pronouncements

Allowance for Credit Losses (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Allowance for Credit Losses
Beginning Balance	$ 118	$ 419
Provision for expected credit losses	605	102
Write-offs and recoveries collected	(294)
Ending Balance	$ 429	$ 521

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues:
Total revenues	$ 31,334	$ 26,646	$ 90,819	$ 79,698
Costs of goods sold and services:
Total costs of goods sold and services	13,551	15,702	36,972	45,484
Gross profit	17,783	10,944	53,847	34,214
Operating expenses:
Research and development	7,200	6,631	17,866	20,290
Selling, general, and administrative	23,595	19,966	66,069	72,723
Other lease costs	758	609	2,696	609
Impairment and restructuring		20,341	(33)	20,341
Total operating expenses	31,553	47,547	86,598	113,963
Loss from operations	(13,770)	(36,603)	(32,751)	(79,749)
Interest income, net	4,185	1,712	11,520	2,316
Other income (expense), net	2,030	(101)	1,884	(676)
Loss before income taxes	(7,555)	(34,992)	(19,347)	(78,109)
Income tax expense	(203)	(72)	(578)	(10)
Net loss	$ (7,758)	$ (35,064)	$ (19,925)	$ (78,119)
Net loss per common share, basic (in dollars per share)	$ (0.21)	$ (0.95)	$ (0.53)	$ (2.12)
Net loss per common share, diluted (in dollars per share)	$ (0.21)	$ (0.95)	$ (0.53)	$ (2.12)
Weighted-average common shares outstanding, basic (in shares)	37,657	37,005	37,494	36,927
Weighted-average common shares outstanding, diluted (in shares)	37,657	37,005	37,494	36,927
Product revenue
Revenues:
Total revenues	$ 19,660	$ 17,693	$ 58,639	$ 53,134
Costs of goods sold and services:
Total costs of goods sold and services	8,342	10,511	22,611	31,178
Service revenue
Revenues:
Total revenues	10,938	8,370	30,069	25,728
Service revenue.
Costs of goods sold and services:
Total costs of goods sold and services	5,209	5,191	14,361	14,306
Collaboration and license revenue
Revenues:
Total revenues	237	301	1,234	479
Grant revenue
Revenues:
Total revenues	$ 499	$ 282	$ 877	$ 357

Revenue and Related Matters - Grant revenue (Details) - USD ($) $ in Thousands				3 Months Ended		9 Months Ended
	Sep. 21, 2022	Mar. 24, 2022	Sep. 29, 2020	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Total revenues				$ 31,334	$ 26,646	$ 90,819	$ 79,698
Research and Development Expense				7,200	6,631	17,866	20,290
Deferred revenue						(894)	(3,108)
RADx WP2
Contract value			$ 18,200		18,200
Contract Payment Received					500
Research and Development Expense				0	0	0	0
ADDF
Contract value		$ 2,300				2,300
Research and Development Expense				300	300	400	400
National Institutes of Health
Contract value	$ 1,700
Grants Received				500		500
Research and Development Expense						400
Grant revenue
Total revenues				499	282	877	357
Grant revenue \| RADx WP2
Total revenues				0	0	0	0
Grant revenue \| ADDF
Total revenues				$ 300	$ 300	400	$ 400
Grant revenue \| National Institutes of Health
Total revenues						$ 500

Inventory

9 Months Ended

Sep. 30, 2023

Inventory

Inventory

Note 7. Inventory

Inventory, net of inventory reserves, consisted of the following (in thousands):


	September 30, 2023			December 31, 2022
Raw materials	$	5,125	$	5,509
Work in process		4,907		3,362
Finished goods		9,913		7,915
Total inventory	$	19,945	$	16,786

Restructuring (Tables)

9 Months Ended

Sep. 30, 2023

Restructuring

Schedule of rollforward of the restructuring reserve and provision activity

The following table presents the restructuring reserve and provision activity for the nine months ended September 30, 2023 (in thousands):


	Severance and Employee Benefit Costs
Balance at December 31, 2022	$	328
Accrual adjustments		(33)
Cash payments		(16)
Foreign currency translation		(4)
Balance at September 30, 2023	$	275

Restructuring (Details) $ in Millions	1 Months Ended	3 Months Ended	9 Months Ended		12 Months Ended
Restructuring (Details) $ in Millions	Sep. 30, 2022 USD ($)	Sep. 30, 2022 USD ($) position	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Restructuring
Total headcount \| position		119
Restructuring				$ 3.4	$ 3.8
Payment of severance	$ 3.1
Goodwill impairment		$ 8.2
Impairment of long-lived assets		$ 16.9		$ 16.9
Property And Equipment [Member]
Restructuring
Impairment of long-lived assets			$ 7.7
Software and Software Development Costs [Member]
Restructuring
Impairment of long-lived assets			1.0
Goodwill [Member]
Restructuring
Goodwill impairment			$ 8.2

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ (7,758)	$ (35,064)	$ (19,925)	$ (78,119)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Accrued Expenses and Other Current Liabilities
Accrued professional services	$ 1,761	$ 1,409
Accrued royalties	1,372	815
Accrued tax liabilities	1,716	172
Other accrued expenses	1,823	2,737
Total accrued expenses and other current liabilities	$ 6,672	$ 5,133