10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from___ to___

Commission file number: 001-40674

MaxCyte, Inc.

(Exact name of registrant as specified in its charter)

Delaware	52-2210438
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

22 Firstfield Road, Suite 110

Gaithersburg, Maryland 20878

(Address of principal executive offices)

Registrant’s telephone number, including area code: (301) 944-1700

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.01 per share	MXCT	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☒ No☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐	Non-accelerated filer	☒
Smaller reporting company	☐	Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 30, 2022, the registrant had 101,540,052 shares of common stock, $0.01 par value per share, issued and outstanding.

Table of Contents

		Page No
PART I. FINANCIAL INFORMATION		5
Item 1.	Financial Statements (Unaudited)	5
	Condensed Consolidated Balance Sheets	5
	Condensed Consolidated Statements of Operations	6
	Condensed Consolidated Statements of Changes in Stockholders’ Equity	7
	Condensed Consolidated Statements of Cash Flows	8
	Notes to Unaudited Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28
Item 4.	Controls and Procedures	29
PART II. OTHER INFORMATION		29
Item 1.	Legal Proceedings	29
Item 1A.	Risk Factors	29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 3.	Defaults Upon Senior Securities	30
Item 4.	Mine Safety Disclosures	30
Item 5.	Other Information	31
Item 6.	Exhibits	32
Signatures		33

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Risk Factors Summary

Our business is subject to numerous risks that you should carefully consider. These risks are more fully described in the section titled “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission, or SEC, on March 22, 2022. A summary of these risks that could materially and adversely affect our business, financial condition, operating results and prospects include the following:

● We are a cell engineering and life sciences company and have incurred significant losses since our inception, and we expect to incur losses for the foreseeable future. We have limited product offerings approved for commercial sale and may never achieve or maintain profitability.

● We are highly dependent on a limited number of product offerings. Our revenue has been primarily generated from the sale and licensing of our ATx, STx and GTx instruments, as well as sales of single-use disposable PAs, which require a substantial sales cycle and are prone to quarterly fluctuations in revenue.

● Our business is dependent on adoption of our products by biopharmaceutical companies and academic institutions for their research and development activities focused on cell-based therapeutics. If biopharmaceutical companies and academic institutions are unwilling to change current practices to adopt our products, it will negatively affect our business, financial condition, prospects and results of operations.

● We may be unable to compete successfully against our existing or future competitors.

● If we cannot maintain and expand current partnerships and enter into new partnerships, that generate marketed licensed products, our business could be adversely affected.

● The failure of our partners to meet their contractual obligations to us could adversely affect our business.

● Our partners may not achieve projected development and regulatory milestones and other anticipated key events in the expected timelines or at all, or may discontinue some or all of their programs, which could have an adverse impact on our business and could cause the price of our common stock to decline.

● In recent periods, we have depended on a limited number of partners for our revenue, the loss of any of which could have an adverse impact on our business.

● We may engage in future acquisitions that could disrupt our business, cause dilution to our stockholders and harm our financial condition and operating results.

● We depend on continued supply of components and raw materials for our ExPERT instruments and PAs from third-party suppliers, and if shortages of these components or raw materials arise, we may not be able to secure enough components to build new products to meet customer demand or we may be forced to pay higher prices for these components.

● We have limited experience manufacturing our PAs and if we move manufacturing of our PAs in-house in the future and are unable to manufacture our PAs in high-quality commercial quantities successfully and consistently to meet demand, our growth will be limited.

● Our results of operations will be harmed if we are unable to accurately forecast customer demand for our products and manage our inventory.

● If we are unable to successfully develop new products, adapt to rapid and significant technological change, respond to introductions of new products by competitors, make strategic and operational decisions to prioritize

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certain markets, technology offerings or partnerships, and develop and capitalize on markets, technologies or partnerships, our business could suffer.

● New product development involves a lengthy and complex process and we may be unable to develop or commercialize products on a timely basis, or at all.

● Our systems are complex in design and may contain defects that are not detected until deployed by our customers, which could harm our reputation, increase our costs and reduce our sales. If our products do not perform as expected or the reliability of the technology on which our products are based is questioned, our operating results, reputation and business will suffer.

● Our FDA Master File, and equivalent Technical Files in foreign jurisdictions, are an important part of our strategic offering which allows our partners to expedite their cellular therapies into and through the clinic. Delays in filing or obtaining, or our inability to obtain or retain, acceptance of such filings in individual countries could negatively impact the progress of our partners if they intend to run clinical trials in such countries, and as a result, could negatively affect our reputation and revenues or require disclosure of confidential information to our partners. Further, changes that we are required to make from time to time, or changes to regulations or negative data or adverse events for our partners, could impact references to our FDA Master File and Technical Files by our partners.

● We may need additional funding and may be unable to raise capital when needed, which would force us to delay, reduce, eliminate or abandon our commercialization efforts or product development programs.

● Our common stock is traded on two separate stock markets and investors seeking to take advantage of price differences between such markets may create unexpected volatility in our share price; in addition, investors may not be able to easily move shares for trading between such markets.

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Part I. FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements (Unaudited)

MaxCyte, Inc.

Condensed Consolidated Balance Sheets

	March 31,		December 31,
	2022		2021
		(Unaudited)		(Note 2)
Assets
Current assets:
Cash and cash equivalents	$	239,777,300	$	47,782,400
Short-term investments, at amortized cost		6,498,600		207,261,400
Accounts receivable		8,627,800		6,877,000
Accounts receivable - TIA		2,119,200		—
Inventory		6,581,600		5,204,600
Prepaid expenses and other current assets		2,190,200		3,307,400
Total current assets		265,794,700		270,432,800
Property and equipment, net		13,203,700		7,681,200
Right of use asset - operating leases		10,901,900		5,689,300
Other assets		1,054,900		316,700
Total assets	$	290,955,200	$	284,120,000
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	4,365,700	$	1,820,300
Accrued expenses and other		3,870,800		6,523,500
Operating lease liability, current		480,200		527,200
Deferred revenue, current portion		6,831,700		6,746,800
Total current liabilities		15,548,400		15,617,800
Operating lease liability, net of current portion		12,770,900		5,154,900
Other liabilities		451,100		450,200
Total liabilities		28,770,400		21,222,900
Commitments and contingencies (Note 8)
Stockholders’ equity
Preferred stock, $0.01 par value; 5,000,000 shares authorized and no shares issued and outstanding at March 31, 2022 and December 31, 2021		—		—
Common stock, $0.01 par value; 400,000,000 shares authorized, 101,509,892 and 101,202,705 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively		1,015,100		1,012,000
Additional paid-in capital		379,541,500		376,189,600
Accumulated deficit		(118,371,800)		(114,304,500)
Total stockholders’ equity		262,184,800		262,897,100
Total liabilities and stockholders’ equity	$	290,955,200	$	284,120,000

See accompanying notes to unaudited condensed consolidated financial statements.

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MaxCyte, Inc.

Unaudited Condensed Consolidated Statements of Operations

	Three Months Ended March 31,
	2022		2021
Revenue	$	11,587,300	$	6,494,900
Cost of goods sold		1,062,600		693,100
Gross profit		10,524,700		5,801,800
Operating expenses:
Research and development		3,765,300		6,076,300
Sales and marketing		3,838,700		2,789,100
General and administrative		6,632,500		2,997,900
Depreciation and amortization		447,300		311,600
Total operating expenses		14,683,800		12,174,900
Operating loss		(4,159,100)		(6,373,100)
Other income (expense):
Interest and other expense		—		(742,300)
Interest income		91,800		9,800
Total other income (expense)		91,800		(732,500)
Net loss	$	(4,067,300)	$	(7,105,600)
Basic and diluted net loss per share	$	(0.04)	$	(0.09)
Weighted average shares outstanding, basic and diluted		101,305,943		81,004,081

See accompanying notes to unaudited condensed consolidated financial statements.

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MaxCyte, Inc.

Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity

								Total
	Common Stock			Additional		Accumulated		Stockholders’
	Shares	Amount		Paid-in Capital		Deficit		Equity
Balance at January 1, 2021	77,382,473	$	773,800	$	127,673,900	$	(95,222,300)	$	33,225,400
Issuance of common stock	5,740,000		57,400		51,751,500		—		51,808,900
Stock-based compensation expense	—		—		1,319,800		—		1,319,800
Exercise of stock options	1,567,086		15,700		2,021,400		—		2,037,100
Net loss	—		—		—		(7,105,600)		(7,105,600)
Balance at March 31, 2021	84,689,559	$	846,900	$	182,766,600	$	(102,327,900)	$	81,285,600

								Total
	Common Stock			Additional		Accumulated		Stockholders’
	Shares	Amount		Paid-in Capital		Deficit		Equity
Balance at January 1, 2022	101,202,705	$	1,012,000	$	376,189,600	$	(114,304,500)	$	262,897,100
Stock-based compensation expense	—		—		2,462,400		—		2,462,400
Exercise of stock options	307,187		3,100		889,500		—		892,600
Net loss	—		—		—		(4,067,300)		(4,067,300)
Balance at March 31, 2022	101,509,892	$	1,015,100	$	379,541,500	$	(118,371,800)	$	262,184,800

See accompanying notes to unaudited condensed consolidated financial statements.

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MaxCyte, Inc.

Unaudited Condensed Consolidated Statements of Cash Flows

	Three Months Ended March 31,
	2022		2021
Cash flows from operating activities:
Net loss	$	(4,067,300)	$	(7,105,600)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		487,400		315,900
Net book value of consigned equipment sold		32,800		1,600
Loss on disposal of fixed assets		—		6,100
Fair value adjustment of liability classified warrant		—		347,900
Stock-based compensation		2,462,400		1,319,800
Amortization of discounts on short-term investments		(33,200)		7,500
Non-cash interest expense		—		5,400
Changes in operating assets and liabilities:
Accounts receivable		(1,750,800)		877,600
Accounts receivable - TIA		(2,119,200)		—
Inventory		(1,377,000)		(287,900)
Other current assets		1,117,200		17,700
Right of use asset – operating leases		(5,212,600)		137,300
Right of use asset – finance lease		—		23,800
Other assets		(738,200)		(49,100)
Accounts payable, accrued expenses and other		(150,500)		(1,420,300)
Operating lease liability		7,569,000		(137,600)
Deferred revenue		84,900		1,224,400
Other liabilities		900		73,400
Net cash used in operating activities		(3,694,200)		(4,642,100)
Cash flows from investing activities:
Maturities of short-term investments		200,796,000		16,000,000
Purchases of property and equipment		(5,999,500)		(308,500)
Net cash provided by investing activities		194,796,500		15,691,500
Cash flows from financing activities:
Net proceeds from issuance of common stock		—		51,808,900
Principal payments on notes payable		—		(4,922,400)
Proceeds from exercise of stock options		892,600		2,037,100
Principal payments on finance leases		—		(24,500)
Net cash provided by financing activities		892,600		48,899,100
Net increase in cash and cash equivalents		191,994,900		59,948,500
Cash and cash equivalents, beginning of period		47,782,400		18,755,200
Cash and cash equivalents, end of period	$	239,777,300	$	78,703,700
Supplemental cash flow information:
Cash paid for interest	$	—	$	416,300
Supplemental disclosure of non-cash investing and financing activities:
Property and equipment purchases included in accounts payable	$	43,200	$	21,200

See accompanying notes to unaudited condensed consolidated financial statements.

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1.   Organization and Description of Business

MaxCyte, Inc. (the “Company”) is a global life sciences company focused on advancing the discovery, development and commercialization of next-generation cell therapies. The Company leverages its proprietary cell engineering technology platform to enable the programs of its biotechnology and pharmaceutical company customers who are engaged in cell therapy, including gene editing and immuno-oncology, as well as in drug discovery and development and biomanufacturing. The Company licenses and sells its instruments and technology and sells its consumables to developers of cell therapies and to pharmaceutical and biotechnology companies for use in drug discovery and development and biomanufacturing. In early 2020, the Company established a wholly owned subsidiary, CARMA Cell Therapies, Inc. (“CCTI”), as part of its development of CARMA, the Company’s proprietary, mRNA-based, clinical-stage, immuno-oncology cell therapy platform. CCTI ceased all material operations by the end of March 2021.

The COVID-19 pandemic has disrupted economic markets and the economic impact, duration and spread of related effects is uncertain at this time and difficult to predict. As a result, it is not possible to ascertain the overall future impact of COVID-19 on the Company’s business and, depending upon the extent and severity of such effects, including, but not limited to potential slowdowns in customer operations, extension of sales cycles, shrinkage in customer capital budgets or delays in customers’ clinical trials, the pandemic could have a material adverse effect on the Company’s business, results of operations, financial condition and cash flows. The Company has made adjustments to its operating, sales and marketing practices to mitigate the effects of COVID-19 restrictions which reduced planned spending, particularly on travel and marketing expenditures. In addition, COVID-19 restrictions may have delayed or slowed the research activities of some existing and prospective customers. It is not possible to quantify the impact of COVID-19 on the Company’s revenues and expenses to date or its expected impact on future periods.

The Company’s registration statement on Form S-1 related to its initial public offering of common stock in the United States (the “IPO”) was declared effective on July 29, 2021, and the Company’s common stock began trading on the Nasdaq Global Select Market on July 30, 2021. On August 3, 2021, the Company issued and sold 15,525,000 shares of common stock in the IPO at a price to the public of $13.00 per share, inclusive of 2,025,000 shares issued pursuant to the full exercise of the underwriters’ option to purchase additional shares. The IPO generated gross proceeds to the Company of $201.8 million. The Company received aggregate net proceeds of $184.3 million from the IPO after deducting aggregate underwriting commissions and offering costs of $17.6 million.

2.    Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the United States Securities and Exchange Commission (the “SEC”). In the Company’s opinion, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, which are necessary to present fairly the financial position, results of operations, and cash flows as of and for the periods presented. The condensed consolidated balance sheet at December 31, 2021 has been derived from audited consolidated financial statements as of that date. The unaudited condensed consolidated results of operations are not necessarily indicative of the results that may occur for the full fiscal year or any other future year or period. Certain information and footnotes disclosure normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to instructions, rules, and regulations prescribed by the SEC. The Company believes that the disclosures provided herein are adequate to make the information presented not misleading when these unaudited interim condensed consolidated financial statements are read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K filed with the SEC on March 22, 2022.

The prior year’s depreciation and amortization expenses included in individual functional operating expense categories were reclassified on the condensed consolidated statement of operations to one functional expense category “Depreciation and Amortization Expense” to conform with current year presentation. For the three months ended March 31, 2021, amounts totaling $311,600 was reclassified from other functional operating expenses to depreciation and amortization

9

expense. This reclassification did not impact the Company’s condensed consolidated balance sheets, statements of cash flows, and statements of changes in stockholders’ equity.

Significant Accounting Policies

The Company’s significant accounting policies are disclosed in the footnotes to its audited consolidated financial statements for the year ended December 31, 2021 included in its Annual Report on Form 10-K and have not materially changed during the three months ended March 31, 2022.

Basis of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, CCTI. All significant intercompany balances have been eliminated in consolidation.

Concentration of Significant Customers

Significant customers are those that accounted for 10% or more of the Company’s total revenue for the period or accounts receivable as the end of a reporting period. During the three months ended March 31, 2022 and 2021, one customer represented 33% and 18% of revenue, respectively. As of March 31, 2022, one customer accounted for 28% of accounts receivable. As of December 31, 2021, two customers accounted for 16% and 13% of accounts receivable, respectively.

Certain components included in the Company’s products are obtained from a single source or a limited group of suppliers. During the three months ended March 31, 2022, the Company purchased approximately 39% of its inventory from one supplier. During the three months ended March 31, 2021, the Company purchased approximately 58% of its inventory from two suppliers. As of March 31, 2022, none of the amounts payable to individual suppliers exceeded 10% of total accounts payable. At December 31, 2021, amounts payable to one supplier totaled 14% of total accounts payable.

Accounts Receivable

Accounts receivable are reduced by an allowance for doubtful accounts, if needed. The Company determined no allowance was necessary at March 31, 2022 or December 31, 2021.

Foreign Currency

The Company’s functional currency is the US dollar; transactions denominated in foreign currencies are subject to currency risk. The Company recognized $23,200 in foreign currency transaction losses and $19,700 in foreign currency transaction gains for the three months ended March 31, 2022 and 2021, respectively.

Leases

In transactions where the Company is the lessee, at the inception of a contract, the Company determines if the arrangement is, or contains, a lease. See Note 8 for additional details over leases where the Company is the lessee.

All transactions in which the Company is the lessor are short-term (one year or less) and have been classified as operating leases. All leases require upfront payments covering the full period of the lease and thus, there are no future payments expected to be received from existing leases. See Note 3 for details over revenue recognition related to lease agreements.

Loss Per Share

Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding during the period.

For periods of net income, and when the effects are not anti-dilutive, diluted earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of shares outstanding plus the impact of

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all potential dilutive common shares, consisting primarily of common stock options and stock purchase warrants using the treasury stock method.

For periods of net loss, diluted loss per share is calculated similarly to basic loss per share because the impact of all dilutive potential common shares is anti-dilutive. The number of anti-dilutive shares excluded from the computation of diluted loss per share, consisting of shares underlying stock options, was 15.1 million for the three months ended March 31, 2022. The number of anti-dilutive shares excluded from the computation of diluted loss per share, consisting of shares underlying stock options and stock purchase warrants, was 12.1 million for the three months ended March 31, 2021.

Recent Accounting Pronouncements

New Accounting Pronouncements Not Yet Adopted

In June 2016, the Financial Accounting Standards Board (“FASB”) issued guidance with respect to measuring credit losses on financial instruments, including trade receivables. The guidance eliminates the probable initial recognition threshold that was previously required prior to recognizing a credit loss on financial instruments. The credit loss estimate can now reflect an entity’s current estimate of all future expected credit losses. Under the previous guidance, an entity only considered past events and current conditions. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The adoption of certain amendments of this guidance must be applied on a modified retrospective basis and the adoption of the remaining amendments must be applied on a prospective basis. The Company is currently evaluating the impact, if any, that this new accounting pronouncement will have on its consolidated financial statements.

The Company has evaluated all other issued and unadopted Accounting Standards Updates and believes the adoption of these standards will not have a material impact on its results of operations, financial position, or cash flows.

3.    Revenue

Revenue is principally from the sale of instruments and processing assemblies, and extended warranties and the lease of instruments, which lease agreements also include customer-specific milestone payments. In some arrangements, products and services have been sold together representing distinct performance obligations. In these arrangements the Company allocates the sale price to the various performance obligations in the arrangement on a relative selling price basis. Under this basis, the Company determines the estimated selling price of each performance obligation in a manner that is consistent with that used to determine the price to sell the deliverable on a standalone basis.

Revenue is recognized at the time control is transferred to the customer and the performance obligation is satisfied. Revenue from the sale of instruments and processing assemblies is generally recognized at the time of shipment to the customer, provided that no significant vendor obligations remain and collectability is reasonably assured. Revenue from equipment leases is recognized ratably over the contractual term of the lease agreement and when specific milestones are achieved by a customer. Licensing fee revenue is recognized ratably over the license period. Revenue from fees for research services is recognized when services have been provided.

Disaggregation of Revenue

The following table depicts the disaggregation of revenue by type of contract:

	Three months ended March 31, 2022
	Revenue from		Revenue
	Contracts		from
	with		Lease		Total
	Customers		Elements		Revenue
Product sales	$	6,567,600	$	—	$	6,567,600
Lease elements		—		4,730,000		4,730,000
Other		289,700		—		289,700
Total	$	6,857,300	$	4,730,000	$	11,587,300

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	Three months ended March 31, 2021
	Revenue from		Revenue
	Contracts		from
	with		Lease		Total
	Customers		Elements		Revenue
Product sales	$	4,075,800	$	—	$	4,075,800
Lease elements		—		2,255,900		2,255,900
Other		163,200		—		163,200
Total	$	4,239,000	$	2,255,900	$	6,494,900

Additional Disclosures Relating to Revenue from Contracts with Customers

Deferred revenue represents payments received for performance obligations not yet satisfied and is presented as current or long-term in the accompanying condensed consolidated balance sheets based on the expected timing and satisfaction of the underlying goods or services. Deferred revenue was $7.3 million and $7.2 million as of March 31, 2022 and December 31, 2021, respectively. During the three months ended March 31, 2022 and 2021, the Company recognized $2.6 million and $2.0 million, respectively, of revenue that was included in deferred revenue at the beginning of such periods.

Remaining contract consideration for which revenue has not been recognized due to unsatisfied performance obligations with a duration greater than one year at March 31, 2022 was $1,586,800, of which the Company expects to recognize $1,135,700 in one year or less, $231,600 in one to two years, $46,600 in two to three years, and $172,900 thereafter.

For the three months ended March 31, 2022 and 2021, the Company did not incur, and therefore did not defer, any material incremental costs to obtain contracts or costs to fulfill contracts.

4.    Debt

In November 2019, the Company entered into a new credit facility with MidCap Financial SBIC, LP (“MidCap”). The credit facility provided for a $5 million term loan maturing on November 1, 2024. The term loan provided for (i) an interest rate of one-month Libor plus 6.5% with a 1.5% Libor floor, (ii) monthly interest payments, (iii) 30 monthly principal payments of $166,700 beginning in June 2022 and (iv) a 3% final payment fee. The Company used the proceeds from the credit facility for general operating purposes. The debt was collateralized by substantially all assets of the Company. In March 2021, the Company repaid the MidCap loan in full. The Company incurred fees of $260,000 associated with early repayment of the loan. The unamortized debt discounts and fees were expensed and recorded as interest expense.

5.    Stockholders’ Equity

Common Stock

In February 2021, the Company completed an equity capital raise issuing 5,740,000 shares of its common stock at a price of ₤7.00 (or approximately $9.64) per share. The transaction generated gross proceeds of ₤40.2 million (or $55.3 million). In conjunction with the transaction, the Company incurred costs of $3.5 million which resulted in the Company receiving net proceeds of $51.8 million.

In August 2021, the Company completed the IPO and received aggregate net proceeds of $184.3 million (see Note 1).

Preferred Stock

In July 2021, upon shareholder approval, the Company was authorized to issue 5,000,000 shares of preferred stock, par value $0.01 per share. As of March 31, 2022 and December 31, 2021, no shares of preferred stock were issued or outstanding.

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Warrant

In connection with the November 2019 credit facility (see Note 4), the Company issued the lender a warrant to purchase 71,168 shares of common stock at an exercise price of £1.09081 per share. The warrant was exercisable at any time through the tenth anniversary of issuance. The warrant was classified as a liability at issuance, as its strike price was in a currency other than the Company’s functional currency. The warrant was recorded at its fair value at the end of each reporting period thereafter with changes from the prior balance sheet date recorded on the condensed consolidated statements of operations (see Note 7).

In a cashless settlement in August 2021, the lender fully exercised the warrant in exchange for 64,603 shares of common stock.

Stock Options

The Company adopted the MaxCyte, Inc. Long-Term Incentive Plan (the “Plan”) in January 2016 to amend and restate the MaxCyte 2000 Long-Term Incentive Plan to provide for the awarding of (i) stock options, (ii) restricted stock, (iii) incentive shares, and (iv) performance awards to employees, officers, and Directors of the Company and to other individuals as determined by the Board of Directors. Under the Plan, as amended, the maximum number of shares of Common Stock of the Company that the Company may issue is increased by ten percent (10%) of the shares that are issued and outstanding at the time awards are made under the Plan. On December 10, 2019 and October 27, 2020, the Company’s Board resolved to increase the number of shares available for grant under the Plan by 3,000,000 and 1,500,000, respectively.

In December 2021, the Company adopted the MaxCyte, Inc. 2021 Inducement Plan (the “Inducement Plan”) to provide for the awarding of (i) non-statutory Stock Options; (ii) stock appreciation rights; (iii) restricted stock awards; (iv) restricted stock unit awards; (v) performance awards; and (vi) other awards only to persons eligible to receive grants of awards who satisfy the standards for inducement grants under Nasdaq Marketplace Rule 5635(c)(4) or 5635(c)(3), if applicable, and the related guidance under Nasdaq IM 5635-1. The Inducement Plan reserved 2,500,000 shares for issuance under awards, and as of December 31, 2021 no awards had been granted. As of March 31, 2022, options to purchase 237,200 shares had been granted under the Inducement Plan.

At March 31, 2022, there were 1,791,494 and 2,271,800 shares available to be issued under the Plan and Inducement Plan, respectively. At December 31, 2021, there were 4,491,162 and 2,500,000 shares available to be issued under the Plan and Inducement Plan, respectively.

The weighted-average fair value of the options granted during the three months ended March 31, 2022 and 2021 was estimated to be $6.93 and $14.33, respectively.

The value of an option award is recognized as expense on a straight-line basis over the requisite service period. At March 31, 2022, total unrecognized compensation expense was $35,409,200, which will be recognized over the next 3.3 years.

The Company recorded stock-based compensation expense in the following expense categories of its condensed consolidated statements of operations:

	Three months ended March 31,
	2022		2021
General and administrative	$	1,292,100	$	741,700
Sales and marketing		662,800		269,200
Research and development		507,500		308,900
Total	$	2,462,400	$	1,319,800

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6. Consolidated Balance Sheet Components

Inventory

Inventory is carried at the lower of cost or net realizable value. The following tables show the components of inventory:

	March 31,		December 31,
	2022		2021
Raw materials inventory	$	3,622,800	$	2,684,100
Finished goods inventory		2,958,800		2,520,500
Total inventory	$	6,581,600	$	5,204,600

The Company determined no allowance for obsolescence was necessary at March 31, 2022 or December 31, 2021.

Property and Equipment

Property and equipment are stated at cost. Depreciation is computed using the straight-line method. Leasehold improvements are amortized over the shorter of the estimated lease term or useful life.

Property and equipment include capitalized costs to develop internal-use software.  Applicable costs are capitalized during the development stage of the project and include direct internal costs, third-party costs and allocated interest expenses as appropriate.

Property and equipment consisted of the following:

	March 31,		December 31,
	2022		2021
Furniture and equipment	$	5,433,200	$	4,914,500
Instruments		3,225,100		3,208,900
Leasehold improvements		641,400		641,400
Internal-use software and other assets under development		6,085,600		1,163,200
Internal-use software		2,667,300		2,125,600
Accumulated depreciation and amortization		(4,848,900)		(4,372,400)
Property and equipment, net	$	13,203,700	$	7,681,200

During the three months ended March 31, 2022 and 2021, the Company transferred $49,400 and $139,800, respectively, of instruments previously classified as inventory to property and equipment leased to customers.

For the three ended March 31, 2022 and 2021, the Company incurred depreciation and amortization expense of $487,400 and $315,900, respectively.

7.    Fair Value

The Company’s condensed consolidated balance sheets include various financial instruments (primarily cash and cash equivalents, accounts receivable and accounts payable) that are carried at cost, which approximates fair value due to the short-term nature of the instruments.

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The Company had an outstanding warrant accounted for as a liability and measured at fair value on a recurring basis, using Level 3 inputs. The lender exercised the warrant, in whole, in August 2021 (see Note 5). The Company did not have any outstanding warrants at March 31, 2022 and December 31, 2021.

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The following table presents the activity for those items measured at fair value on a recurring basis using Level 3 inputs for the three months ended March 31, 2021:

	Mark-to-market liabilities – warrant
	Three Months Ended
	March 31,
	2021
Balance, beginning of period	$	441,200
Change in fair value		347,900
Balance, end of period	$	789,100

The gains and losses resulting from the changes in the fair value of the liability classified warrant were classified as other interest income or interest and other expense in the accompanying condensed consolidated statements of operations.

The Company has no other financial assets or liabilities measured at fair value on a recurring basis.

Financial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

Money market funds, commercial paper and corporate debt instruments classified as held-to-maturity are measured at fair value on a non-recurring basis when they are deemed to be impaired on an other-than-temporary basis. No such fair value impairment was recognized during the three months ended March 31, 2022 or 2021.

The following table summarizes the Company’s financial instruments that were measured at fair value on a non-recurring basis at March 31, 2022:

				Gross		Gross
		Amortized		unrecognized		unrecognized		Aggregate
Description	Classification	cost		holding gains		holding losses		fair value
Money market funds	Cash equivalents	$	234,975,600	$	—	$	—	$	234,975,600
Commercial paper	Short-term investments		6,498,600		—		(2,400)		6,496,200
Total cash equivalents and short-term investments		$	241,474,200	$	—	$	(2,400)	$	241,471,800

The following table summarizes the Company’s financial instruments that were measured at fair value on a non-recurring basis at December 31, 2021:

				Gross		Gross
		Amortized		unrecognized		unrecognized		Aggregate
Description	Classification	cost		holding gains		holding losses		fair value
Money market funds	Cash equivalents	$	19,341,500	$	—	$	—	$	19,341,500
Commercial paper	Cash equivalents		25,492,200		4,400		—		25,496,600
Corporate debt	Short-term investments		4,909,200		—		(1,800)		4,907,400
Commercial paper	Short‑term investments		202,352,200		22,900		—		202,375,100
Total cash equivalents and short-term investments		$	252,095,100	$	27,300	$	(1,800)	$	252,120,600

At times the Company’s cash balances may exceed federally insured limits and cash may also be deposited in foreign bank accounts that are not covered by federal deposit insurance. The Company does not believe that this results in any significant credit risk.

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Non-Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The Company has no non-financial assets and liabilities that are measured at fair value on a recurring basis.

Non-Financial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The Company measures its long-lived assets, including property and equipment, at fair value on a non-recurring basis. These assets are recognized at fair value when they are deemed to be impaired. No fair value impairment was recognized during the three months ended March 31, 2022 and 2021.

8.  Commitments and Contingencies

Operating Leases

The Company is a party to various leases for office and laboratory space. A member of the Company’s Board of Directors is the CEO and Board member of the lessor of certain of these leases for which the rent payments totaled $163,700 and $158,700 in the three months ended March 31, 2022 and 2021, respectively. The Company’s Chairman is also a Board member of the lessor.

In 2021, the Company entered into an operating lease agreement, as amended, for new office and manufacturing space (the “2021 Lease”). The 2021 Lease consists of three phases, with Phase 1 having commenced in December 2021 and Phase 2 having commenced in the first quarter of 2022. Phase 3 is estimated to commence in the first quarter of 2023. The lease term for all phases is expected to expire on August 31, 2035. The Company will design and construct the leasehold improvements with the approval of the landlord. The 2021 Lease agreement includes a landlord-provided tenant improvement allowance (“TIA”) of $6.3 million, which will be applied to the cost of construction of leasehold improvements. As of March 31, 2022, the Company had outstanding invoices for TIA reimbursement totalling $2.1 million. Under the 2021 Lease, the Company has three five-year options to extend the term of the lease. However, the Company is not reasonably certain to exercise any of these options. The total incremental non-cancellable lease payments under the 2021 Lease are approximately $29.6 million over the lease term.

Finance Leases

In August 2021, the Company exercised its purchase option under a finance lease and acquired the associated leased laboratory equipment. At March 31, 2022 and December 31, 2021, the Company had no right-of-use finance asset or lease liability.

All Leases

The components of lease cost and supplemental balance sheet information for the Company’s lease portfolio were as follows:

	Three months ended March 31,
	2022		2021
Finance lease cost
Amortization of right-of-use asset	$	—	$	23,800
Interest on expense		—		3,200
Operating lease cost		416,300		172,500
Short-term lease cost		12,100		8,900
Variable lease cost		75,400		75,600
Total lease cost	$	503,800	$	284,000

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	As of March 31,		As of December 31,
	2022		2021
Operating leases
Assets:
Operating lease right-of-use assets	$	10,901,900	$	5,689,300
Liabilities
Current portion of operating lease liabilities	$	480,200	$	527,200
Operating lease liabilities, net of current portion		12,770,900		5,154,900
Total operating lease liabilities	$	13,251,100	$	5,682,100
Other information
Weighted-average remaining lease term (in years)		12.8		11.7
Weighted-average discount rate		6.6%		6.6%

As of March 31, 2022, maturities of lease liabilities that had commenced prior to March 31, 2022 were as follows:

	Operating Leases
Remainder of 2022	$	660,200
2023		1,631,400
2024		1,734,500
2025		1,777,700
2026 and thereafter		19,653,100
Total undiscounted lease payments		25,456,900
Discount factor		(11,318,800)
Present value of lease liabilities	$	14,138,100

9. Subsequent Events.

On April 12, 2022, Amanda L. Murphy resigned from her position as Chief Financial Officer, effective April 15, 2022 and was replaced by Ron Holtz as Interim Chief Financial Officer. On May 6, 2022, the Company entered into a severance agreement and a consulting agreement with Ms. Murphy.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our unaudited condensed consolidated financial statements and related notes thereto included in Part I, Item 1 of this Quarterly Report on Form 10-Q, our audited consolidated financial statements and related notes for the year ended December 31, 2021, included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 22, 2022, as well as the information contained under Management’s Discussion and Analysis of Financial Condition and Results of Operations and "Risk Factors" contained in the Annual Report on Form 10-K, and “Risk Factors Summary” and Part II, Item 1A "Risk Factors" of this Quarterly Report on Form 10-Q, and other information provided from time to time in our other filings with the SEC.

Special Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements about us and our industry involve substantial risks, uncertainties, and assumptions, including those described in “Risk Factors Summary” and elsewhere in this report. All statements other than statements of historical facts contained in this report, including statements regarding our future results of operations or financial condition, business strategy and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will” or “would” or the negative of these words or other similar terms or expressions. These forward-looking statements include, but are not limited to, statements concerning the following:

● our expected future growth and the success of our business model;

● the potential payments we may receive pursuant to our Strategic Platform Licenses (“SPLs”);

● the size and growth potential of the markets for our products, and our ability to serve those markets, increase our market share and achieve and maintain industry leadership;

● the rate and degree of market acceptance of our products within the cell engineering market;

● the expected future growth of our manufacturing capabilities and sales, support and marketing capabilities;

● our ability to expand our customer base and enter into additional SPLs;

● our ability to accurately forecast and manufacture appropriate quantities of our products to meet commercial demand;

● our expectations regarding development of the cell therapy market, including projected growth in adoption of non-viral delivery approaches and gene editing manipulation technologies;

● our ability to maintain our FDA Master File and Technical Files;

● our research and development for any future products, including our intention to introduce new instruments and processing assemblies and move into new applications;

● the development, regulatory approval, and commercialization of competing products and our ability to compete with the companies that develop and sell such products;

● our ability to retain and hire senior management and key personnel;

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● regulatory developments in the United States and foreign countries;

● our expectations regarding the period during which we qualify as an emerging growth company under the JOBS Act;

● our ability to develop and maintain our corporate infrastructure, including our internal controls;

● our financial performance and capital requirements;

● our expectations regarding our ability to obtain and maintain intellectual property protection for our products, as well as our ability to operate our business without infringing the intellectual property rights of others; and

● our use of available capital resources.

You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled “Risk Factors Summary” in this report and under the caption “Risk Factors” and elsewhere in the Final Prospectus. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this report. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this Quarterly Report on Form 10-Q. And while we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.

The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report to reflect events or circumstances after the date of this Quarterly Report or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.

You should read this Quarterly Report and the documents that we file with the SEC with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect.

In this Quarterly Report on Form 10-Q, unless the context requires otherwise, all references to “we,” “our,” “us,” “MaxCyte” and the “Company” refer to MaxCyte, Inc.

Overview

We are a leading commercial cell engineering company focused on providing enabling platform technologies to advance innovative cell-based research as well as next-generation cell therapeutic discovery, development and commercialization. Over the past twenty years, we have developed and commercialized our proprietary Flow Electroporation platform, which facilitates complex engineering through the delivery of molecules into a wide variety of cells. Electroporation is a method

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of transfection, or the process of deliberately introducing molecules into cells, that involves applying an electric field to temporarily increase the permeability of the cell membrane. This precisely controlled increase in permeability allows the intracellular delivery of molecules, such as genetic material and proteins, that would not normally be able to cross the cell membrane as easily.

Our ExPERT platform, which is based on our Flow Electroporation technology, has been designed to address this rapidly expanding cell therapy market and can be utilized across the continuum of the high-growth cell therapy sector, from discovery and development through commercialization of next-generation, cell-based medicines. The ExPERT family of products includes three instruments, which we call the ATx, STx and GTx, respectively, as well as a portfolio of proprietary related disposables and consumables (as well as the VLx instrument for very large-scale cell engineering made available for sale in December 2021). These include processing assemblies, or PAs, designed for use with our instruments, as well as accessories supporting PAs such as electroporation buffer solution and software protocols. We have garnered meaningful expertise in cell engineering via our internal research and development efforts as well as our customer-focused commercial approach, which includes a growing application scientist team. The platform is also supported by a robust intellectual property portfolio with more than 130 granted U.S. and foreign patents and more than 60 pending patent applications worldwide.

From leading commercial cell therapy drug developers and top biopharmaceutical companies to top academic and government research institutions, including the U.S. National Institutes of Health, or NIH, our customers have extensively validated our technology. We believe the features and performance of our platform have led to sustained customer engagement. Our existing customer base ranges from large biopharmaceutical companies, including all of the top 10, and 20 of the top 25, pharmaceutical companies based on 2021 global revenue, to hundreds of biotechnology companies and academic centers focused on translational research.

Since our inception, we have incurred significant operating losses. Our ability to generate revenue sufficient to achieve profitability will depend on the successful further development and commercialization of our products. We generated revenue of $11.6 million and incurred a net loss of $4.1 million for the three months ended March 31, 2022. As of March 31, 2022, we had an accumulated deficit of $118.4 million. We expect to continue to incur net losses as we focus on growing commercial sales of our products in both the United States and international markets, including growing our sales and field application scientist teams, scaling our manufacturing operations, and research and development efforts to develop new products and further enhance our existing products. Further, we expect to incur additional costs associated with operating as a public company in the United States.

Impact of COVID-19 on Our Business

We continue to closely monitor the impact of the novel coronavirus (“COVID-19”) pandemic on our business and the geographic regions where we operate. The impact of this pandemic has been and will likely continue to be extensive in many aspects of society, which has resulted in and will likely continue to result in significant disruptions to the global economy, as well as businesses and capital markets around the world.

Impacts to our business as a result of COVID-19 have included disruptions to our manufacturing operations and supply chain caused by facility closures, reductions in operating hours, staggered shifts and other social distancing efforts, decreased productivity and unavailability of materials or components, limitations on our employees’ and customers’ ability to travel, and delays in product installations, demonstrations, trainings or shipments to and from affected countries and within the United States. Disruptions in our customers’ operations have impacted and may continue to impact our business.  In light of the uncertain and rapidly evolving situation relating to the spread of COVID-19, we have taken precautionary measures intended to minimize the risk of the virus to our employees, our customers and the communities in which we operate, including temporarily closing our offices to visitors and limiting the number of employees in our offices to those that are deemed essential for manufacturing and research purposes, as well as virtualizing, postponing or canceling customer, employee and industry events.

We do not yet know the net impact that the COVID-19 pandemic may have on our business and cannot guarantee that it will not be materially negative. Although we continue to monitor the situation and may adjust our current policies as more information and public health guidance become available, the ongoing effects of the COVID-19 pandemic and/or the

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precautionary measures that we or our customers have implemented or may adopt may create operational and other challenges, any of which could harm our business and results of operations.

Recent Developments

We have continued to enter into SPL agreements with our cell therapy customers. These agreements are discussed in more detail in “Results of Operations” below and provide us with revenue from instrument sales and leases and disposables sales as well as downstream economics on our partners’ programs (both pre- and post-commercial). In the first three months of 2022, we have signed an SPL agreement with Intima Bioscience. We continue to grow our SPL pipeline and, while the specific timing of any agreement is uncertain, we expect to sign additional SPL agreements in the future.

Results of Operations

Comparison of the Three Months Ended March 31, 2022 and 2021

The following table sets forth our results of operations for the periods presented:

		Three Months Ended
		March 31,
		2022		2021
		(in thousands)
Total revenue	$	11,587	$	6,495
Cost of goods sold		1,063		693
Gross profit		10,525		5,802
Operating expense
Research and development		3,765		6,076
Sales and marketing		3,839		2,789
General and administrative		6,633		2,998
Depreciation and amortization		447		312
Total operating expense		14,684		12,175
Operating loss		(4,159)		(6,373)
Other income (expense)
Interest and other expense		—		(742)
Interest and other income		92		10
Total other income (expense)		92		(733)
Net loss	$	(4,067)	$	(7,106)

Revenue

We generate revenue principally from the sale of instruments and single-use processing assemblies (“PAs”) and buffer, and from the lease of instruments to our customers. In addition, our SPLs include clinical progress milestones and sales-based payments to us which may also provide material revenues.

In order to evaluate how our sales are trending across key markets, as well as the contribution of program economics from our SPLs, we separately analyze revenue derived from our cell therapy customers and drug discovery customers, as well as the performance-based milestone revenues we recognize under our SPLs. Cell therapy revenues include primarily revenue from instruments sold, annual license fees for instruments under lease, and sales of our proprietary disposables. Drug discovery revenue includes primarily revenue from instruments sold, sales of our proprietary disposables and, occasionally, instruments leased.  Program-related revenues include clinical progress milestone and sales-based revenues derived from SPL agreements. Milestone revenues are recognized when a customer achieves the associated milestone event. To date, all Program-related revenue has consisted entirely of pre-commercial milestone revenue.

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The following table provides details regarding the sources of our revenue for the periods presented:

	Three Months Ended
	March 31,				Change
	2022		2021		Amount		%
(in thousands, except percentages)
Cell therapy	$	7,416	$	4,729	$	2,687	57%
Drug discovery		2,167		1,762		405	23%
Program-related		2,004		4		2,000	NM
Total revenue	$	11,587	$	6,495	$	5,092	78%

Total revenue for the three months ended March 31, 2022 was $11.6 million, an increase of $5.1 million, or 78%, compared to revenue of $6.5 million during the three months ended March 31, 2021.

Our overall increase in revenue was primarily driven by growth in sales and licenses of instruments to cell therapy customers, and sales of disposables to cell therapy and drug discovery customers, as well as a significant increase in program-related revenue. In the cell therapy market, instrument sales and licenses of instruments increased by $1.7 million which was primarily due to continued high levels of capital invested in companies operating in our target markets and progress of existing SPL partners, while disposable sales increased by $0.9 million, as a result of the continued progression of our cell therapy partners’ therapeutic development programs. In the drug discovery market, the $0.4 million increase was primarily driven by increases in disposable sales. The $2.0 million increase in program-related revenues resulted from clinical progress of our SPL customers, consistent with the expected variability of milestone revenues given the small number of individual triggering events which currently generate this portion of revenue. We expect program-related revenue to experience variability for some time, although we anticipate that it may moderate as the volume of SPLs and associated milestones grows.

We expect total revenue to increase over time as our markets grow and we are able to secure additional instrument sales and leases and disposable sales and as the percentage of our installed base that are under cell therapy license agreements increases. We expect revenue from instruments licensed to cell therapy customers to continue to grow as those customers advance their preclinical pipeline programs into clinical development and move their existing drug development programs into later-stage clinical trials. In addition, we expect new customers to emerge and contribute to these revenues, particularly given the underlying growth in the cell therapy pipeline among companies in this market, continued availability of capital to support such companies, and in particular the switch by some of these cell therapy companies away from viral to non-viral approaches. We expect, however, that our revenue will fluctuate from period to period due to the timing of securing product sales and licenses, the inherently uncertain nature of the timing of our partners’ achievements of clinical progress milestones and our dependence on the program decisions of our partners.

Cost of Goods Sold and Gross Profit

Cost of goods sold primarily consists of costs for instrument and processing assembly components, contract manufacturer costs, salaries, overhead and other direct costs related to sales recognized as revenue in the period. Cost of goods sold associated with instrument lease revenue consists of leased equipment depreciation. Gross profit is calculated as revenue less cost of goods sold. Gross profit margin is gross profit expressed as a percentage of revenue.

Our gross profit in future periods will depend on a variety of factors, including sales mix among instruments, disposables and milestones, the specific mix among types of instruments or disposables, the proportion of revenues associated with instrument leases as opposed to sales, changes in the costs to produce our various products, the launch of new products or changes in existing products, our cost structure for manufacturing including changes in production volumes, and the pricing of our products which may be impacted by market conditions.

During the three months ended March 31, 2022, gross margin was 91%, compared to 89% in the same period of 2021. The increase in gross margin was principally due to increased milestone revenues, which have no associated cost of goods sold. Excluding program-related revenues, gross margin was materially unchanged. Our margins depend on the revenue mix from instruments, PAs and milestones under SPLs. We price our instruments at a premium given what we believe to be

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the broad benefits of our platform, and the limited availability of alternative, clinically validated non-viral delivery approaches. However, the market for non-viral delivery is highly competitive, and introduction of a GMP-grade platform by a competitor that delivers similar performance across a similar diversity of cell types could negatively impact our business and lead to increased price pressure that negatively impacts our gross margins.

In addition, part of our growth strategy is to expand into new regional markets, which could require the use of distributors and/or our participation in more competitive environments, which could impact our ability to price our instruments at a premium and could negatively impact our ability to enter into SPLs on terms similar to those currently in effect.

	Three Months Ended March 31,				Change
	2022		2021		Amount		%
(in thousands, except percentages)
Cost of goods sold	$	1,063	$	693	$	370	53%
Gross profit	$	10,525	$	5,802	$	4,723	81%
Gross margin		91%		89%

Cost of goods sold increased by $0.4 million, or 53%, for the three months ended March 31, 2022 compared to the three months ended March 31, 2021. The increase was primarily driven by higher sales of instruments and disposables.

Gross profit increased by $4.7 million, or 81%, for the three months ended March 31, 2022 compared to the three months ended March 31, 2021. The increase was primarily driven by increased revenue from instrument and disposable sales,  licensed instruments and the significant increase in program-related revenue.

We expect that our cost of goods sold will generally increase or decrease as our instrument and disposables revenue increases or decreases. We expect our gross margin to benefit from realization of the economics from our SPL agreements, to the extent that such milestones grow to be a significant proportion of overall revenues, as there is no cost of goods sold associated with such revenue. However, realization and timing of these potential milestone revenues is uncertain.

Operating Expenses

Research and Development

	Three Months Ended March 31,				Change
	2022		2021		Amount		%
(in thousands, except percentages)
Research and development	$	3,765	$	6,076		($2,311)	(38%)

Research and development expenses consist primarily of costs incurred for our research activities related to advancing our technology and development of applications for our technology, including research into specific applications and associated data development, process development, product development (e.g., development of instruments and disposables, including hardware and software engineering) and design and other costs not directly charged to inventory or cost of goods sold.

These expenses principally include employee-related costs, such as salaries, benefits, incentive compensation, stock-based compensation, and travel, as well as consultant services, facilities, and laboratory supplies and materials. These expenses are exclusive of depreciation and amortization. We expense research and development costs as incurred in the period in which the underlying activity is undertaken.

For the three months ended March 31, 2021, our research and development expenses included costs associated with developing the CARMA platform, principally for a clinical trial that has concluded. There were no material CARMA-related expenses after March 31, 2021 and none are expected in the future.

Research and development expenses decreased by $2.3 million, or 38%, for the three months ended March 31, 2022 compared to the three months ended March 31, 2021. The decrease was primarily driven by a $3.6 million decrease in CARMA expenses as a result of the wind-down of CARMA operations, partially offset by a $0.5 million increase in

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compensation expenses as a result of increases in headcount and a $0.4 million increase in stock-based compensation expense.

We believe that our continued investment in research and development is essential to our long-term competitive position. We expect to continue to incur substantial research and development expenses as we invest in research and development to support our customers, develop new uses for our existing technology and develop improved and/or new offerings for our customers and partners. As a result, we expect that our research and development expenses, excluding CARMA-related expenses, will continue to increase in absolute dollars in future periods and vary from period to period as a percentage of revenue.

Sales and Marketing

	Three Months Ended March 31,				Change
	2022		2021		Amount		%
(in thousands, except percentages)
Sales and marketing	$	3,839	$	2,789	$	1,050	38%

Our sales and marketing expenses consist primarily of salaries, commissions and other variable compensation, benefits, stock-based compensation and travel costs for employees within our commercial sales and marketing functions, as well as third-party costs associated with our marketing activities. These expenses are exclusive of depreciation and amortization.

Sales and marketing expenses increased by $1.1 million, or 38%, for the three months ended March 31, 2022 compared to the three months ended March 31, 2021. The increase was primarily driven by a $0.6 million increase in compensation expenses as a result of increases in headcount and a $0.2 million increase in stock-based compensation.

We expect our sales and marketing expenses to increase in future periods as we expand our commercial sales, marketing and business development teams, product offerings, expand our collaboration efforts, increase our presence globally, and increase marketing activities to drive awareness and adoption of our products.

General and Administrative

	Three Months Ended March 31,				Change
	2022		2021		Amount		%
(in thousands, except percentages)
General and administrative	$	6,633	$	2,998	$	3,635	121%

General and administrative expenses primarily consist of salaries, benefits, stock-based compensation and travel costs for employees in our executive, accounting and finance, legal, corporate development, human resources, and office administration functions as well as professional services fees, such as consulting, audit, tax and legal fees, general corporate costs, facilities and allocated overhead expenses and costs associated with being a Nasdaq and AIM listed public company such as director fees, U.K. NOMAD and broker fees, investor relations consultants and insurance costs. These expenses are exclusive of depreciation and amortization.

General and administrative expense increased by $3.6 million, or 121%, for the three months ended March 31, 2022 compared to the three months ended March 31, 2021. The increase was primarily driven by a $1.3 million increase in expenses associated with our common stock being listed on the Nasdaq stock exchange in July 2021, as well as related legal and professional services, as well as a $1.0 million increase in compensation expense associated with headcount and salary increases, a $0.6 million increase in stock-based compensation, and a $0.3 million increase in occupancy expense.

We expect that our general and administrative expenses will continue to increase in absolute dollars in future periods, primarily due to increased headcount to support anticipated growth in the business and due to incremental costs associated with operating as a public company listed on a U.S. exchange, including insurance (particularly directors and officers insurance), costs to comply with the rules and regulations applicable to companies listed on a U.S. securities exchange and costs related to compliance and reporting obligations pursuant to the rules and regulations of the SEC and stock exchange

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listing standards, investor relations and professional services. We expect these expenses to vary from period to period as a percentage of revenue.

Depreciation and Amortization

Depreciation expense consists of the depreciation of property and equipment used actively in the business, primarily by research and development activities. Amortization expense includes the amortization of intangible assets over their respective useful lives.

	Three Months Ended March 31,				Change
	2022		2021		Amount		%
(in thousands, except percentages)
Depreciation and amortization	$	447	$	312	$	136	44%

Depreciation and amortization expense increased by $0.1 million, or 44%, for the three months ended March 31, 2022, compared to the three months ended March 31, 2021. The increase was primarily driven by a significant investment in capital assets made in 2021 for laboratory equipment.

Interest and Other Income (Expense)

	Three Months Ended March 31,				Change
	2022		2021		Amount		%
(in thousands, except percentages)
Interest and other expense	$	—	$	742		($742)	(100%)
Interest and other income		92		10		82	837%

We did not incur interest or other expense for the three months ended March 31, 2022 as we currently have no indebtedness. Interest and other expense for the three months ended March 31, 2021 comprise interest expense on our previously outstanding bank loan and a fair value adjustment for a warrant that has subsequently been exercised in full. Interest and other income represents interest on our cash balances and was immaterial for each of the three months ended March 31, 2022 and 2021.

Liquidity and Capital Resources

Since our inception, we have experienced losses and negative cash flows from operations. For the three months ended March 31, 2022, we incurred net losses of $4.1 million. As of March 31, 2022, we had an accumulated deficit of $118.4 million. To date, we have funded our operations primarily with proceeds from sales of common stock, including our IPO, as well as borrowings under loan agreements and from revenues associated with sales and licenses of our products to customers. As of March 31, 2022, we had cash and cash equivalents and short-term investments of $246.3 million.

We expect to incur increased near-term operating losses as we continue to invest in expanding our business through growing our sales and marketing efforts, continued research and development, product development and expanding our product offerings. Based on our current business plan, we believe our existing cash and cash equivalents and short-term investments, will enable us to fund our operating expenses and capital expenditure requirements for the foreseeable future.

We have based this estimate on assumptions that may prove to be wrong, and we could utilize our available capital resources sooner than we expect. Our future funding requirements will depend on many factors, including:

● transaction and capital expenditures necessitated by strategic activities;

● market acceptance of our products;

● the cost and timing of establishing additional sales, marketing and distribution capabilities;

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● the cost of our research and development activities and successful development of data supporting use of our products for new applications, and timely launch of new features and products;

● our ability to enter into additional SPLs and licenses for clinical use of our platform in the future;

● changes in the amount of capital available to existing and emerging customers in our target markets;

● the effect of competing technological and market developments; and

● the level of our selling, general and administrative expenses.

If we are unable to execute on our business plan and adequately fund operations, or if the business plan requires a level of spending in excess of cash resources, we will have to seek additional equity or debt financing. If additional financings are required from outside sources, we may not be able to raise such capital on terms acceptable to us or at all. To the extent that we raise additional capital through the sale of equity or debt securities, the ownership interest of our stockholders will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our common stockholders. Debt financing, if available, may involve agreements that include covenants restricting our ability to take specific actions, such as incurring additional debt, selling or licensing our assets, making product acquisitions, making capital expenditures or declaring dividends. If we raise additional funds through collaboration and licensing arrangements with third parties, it may be necessary to relinquish some rights to our technologies or our products, or grant licenses on terms that are not favorable to us. If we are unable to raise additional capital when desired, we may have to delay development or commercialization of future products. We also may have to reduce marketing, customer support or other resources devoted to our existing products.

Cash Flows

The following table summarizes our uses and sources of cash for the periods presented:

	Three Months Ended
	March 31,
(in thousands)	2022		2021
Net cash provided by (used in):
Operating activities	$	(3,694)	$	(4,642)
Investing activities		194,797		15,692
Financing activities		893		48,899
Net increase in cash and cash equivalents	$	191,995	$	59,949

Operating Activities

Net cash used in operating activities for the three months ended March 31, 2022 was $3.7 million, and consisted primarily of our net loss of $4.1. million, offset in part by net non-cash expenses of $3.0 million, including stock-based compensation of $2.5 million and depreciation and amortization expenses of $0.5 million. We also had net cash inflows of $2.7 million due to net changes in our operating assets and liabilities. Net changes in our operating assets and liabilities consisted primarily of an increase in the net effect of our right-of-use assets and lease liabilities of $2.4 million and a $1.1 million decrease in other current assets, partially offset by a $2.1 million increase in TIA receivable, a $1.8 million increase in accounts receivable, a $1.4 million increase in inventory, a $0.7 million increase in other non-current assets and a $0.2 million increase in accounts payable and accrued expenses.

Net cash used in operating activities for the three months ended March 31, 2021 was $4.6 million, and consisted primarily of our net loss of $7.1 million, offset in part by net non-cash expenses of $2.0 million, including stock-based compensation of $1.3 million, warranty liability fair value adjustments of $0.3 million, and depreciation and amortization expenses of $0.3 million. We also had net cash inflows of $0.5 million due to net changes in our operating assets and liabilities. Net changes in our operating assets and liabilities consisted primarily of an increase in deferred revenue of $1.2 million, a

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decrease in accounts receivable of $0.9 million, partially offset by a $1.4 million decrease in accounts payable and accrued expenses, and a $0.3 million increase in inventory.

Investing Activities

Net cash provided by investing activities during the three months ended March 31, 2022 was $194.8 million, which was primarily attributable to maturities of short-term marketable securities of $200.8 million, partially offset by purchases of property and equipment of $0.6 million and capitalized lease-related construction expenses of $5.5 million. Purchases and sales of short-term marketable securities are made as part of ordinary course investing activities in compliance with our investment policy which has as its primary objective preservation of principal.

Net cash provided by investing activities during the three months ended March 31, 2021 was $15.7 million, which was primarily attributable to maturities of marketable securities of $16.0 million, partially offset by purchases of property and equipment of $0.3 million.

Financing Activities

Net cash provided by financing activities during the three months ended March 31, 2022 was $0.9 million, which was attributable to the exercise of stock options.

Net cash provided by financing activities during the three months ended March 31, 2021 was $48.9 million, which was primarily attributable to net proceeds from our issuance of common stock of $51.8 million and proceeds of $2.0 million from the exercise of stock options, partially offset by the repayment of indebtedness of $4.9 million.

Contractual Obligations and Commitments

Our contractual obligations and commitments as of March 31, 2022 consisted exclusively of operating lease obligations. In May, 2021, we entered into an operating lease for new office, lab and warehouse/manufacturing space. The lease for the new facility consists of three phases, with Phase 1 having commenced in December 2021 and Phase 2 having commenced in the first quarter of 2022, and the lease of all phases is estimated to expire on August 31, 2035. We will design and construct the leasehold improvements with the approval of the landlord. The landlord will reimburse us for costs of property improvements up to amounts specified in the lease. The total incremental non-cancellable lease payments under the new lease agreements are approximately $29.6 million through the lease term, which continues until 2035.

In June, 2021, we exercised our option to early terminate the terms of one of our existing office space lease arrangements, which will terminate on June 7, 2022.

In August 2021, we terminated a finance lease and as of March 31, 2022, we do not have any finance lease obligations.

As of March 31, 2022, operating lease obligations included $0.8 million in payments due under our lease of office and laboratory space under operating lease agreements that expire in October 2023.

Purchase orders or contracts for the purchase of supplies and other goods and services are based on our current procurement or development needs and are generally fulfilled by our vendors within short time horizons.

Critical Accounting Policies and Significant Judgments and Estimates

We have prepared our condensed consolidated financial statements in accordance with U.S. GAAP. Our preparation of these condensed consolidated financial statements requires us to make estimates, assumptions and judgments that affect the reported amounts of assets, liabilities, revenue, expenses and related disclosures. We evaluate our estimates and judgments on an ongoing basis. We base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources.

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Actual results could therefore differ materially from these estimates under different assumptions or conditions.

There have been no material changes to our critical accounting policies and estimates from those disclosed in our consolidated financial statements and the related notes and other financial information included in the Annual Report on Form 10-K filed with SEC on March 22, 2022.

JOBS Act Accounting Election

We are an “emerging growth company,” or EGC, under the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. Section 107 of the JOBS Act provides that an EGC can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. Thus, an EGC can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to avail ourselves of the delayed adoption of new and revised accounting standards and, therefore, we will be subject to the same requirements to adopt new or revised accounting standards as private entities. We also intend to rely on other exemptions provided by the JOBS Act, including not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act.

We will remain an EGC until the earliest of (i) December 31, 2026, (ii) the last day of the fiscal year in which we have total annual gross revenues of $1.07 billion or more, (iii) the date on which we have issued more than $1 billion in non-convertible debt during the previous rolling three-year period, or (iv) the date on which we are deemed to be a “large accelerated filer” under SEC rules.

Recent Accounting Pronouncements

A description of recently issued accounting pronouncements that may potentially impact our financial position, results of operations or cash flows is disclosed in Note 2 to our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Risk

We are exposed to market risk for changes in interest rates related primarily to balances of our financial instruments including cash and cash equivalents and short-term investments. As of March 31, 2022, we had cash and cash equivalents and short-term investments of $246.3 million, which consisted primarily of money market funds and commercial paper. The primary objective of our investment approach is to preserve principal and provide liquidity. As of March 31, 2022, we held money market fund securities of $235.0 million, short-term commercial paper of $6.5 million. Our primary exposure to market risk is interest income sensitivity, which is affected by changes in the general level of interest rates in the United States. A 10% change in the level of market interest rates would not have a material effect on our business, financial condition or results of operations.

Foreign Currency Risk

We are exposed to financial risks as a result of exchange rate fluctuations between the U.S. Dollar and certain foreign currencies and the volatility of these rates. In the normal course of business, we earn revenue primarily denominated in U.S. Dollars as well as in Euros and British Pounds. We incur expenses primarily in U.S. Dollars as well as in Euros, British Pounds and other currencies. Our reporting currency is the U.S. Dollar. We hold our cash primarily in U.S. Dollars as well as in Euros and British Pounds. We do not expect that foreign currency gains or losses will have a material effect on our financial position or results of operations in the foreseeable future. We have not entered into any hedging arrangements with respect to foreign currency risk. As our international operations grow, we will continue to reassess our approach to managing risks relating to fluctuations in currency exchange rates.

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We carried out an evaluation, under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our “disclosure controls and procedures” as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Based on our evaluation, our Chief Executive Officer and Chief Financial Officer concluded that the design and operation of these disclosure controls and procedures were effective as of March 31, 2022 at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the three months ended March 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Limitations on the Effectiveness of Controls

Control systems, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control systems’ objectives are being met. Further, the design of any system of controls must reflect the fact that there are resource constraints, and the benefits of all controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of error or mistake. Control systems can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is also based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

From time to time, we may become involved in legal proceedings arising in the ordinary course of our business. We are not currently a party to any material legal proceedings, and we are not aware of any pending or threatened legal proceeding against us that we believe could have an adverse effect on our business, operating results or financial condition.

Item 1A. Risk Factors.

Our business is subject to numerous risks. You should carefully consider the risks and uncertainties described in this report under the caption “Risk Factors Summary,” in addition to other information contained in this report as well as our other public filings with the SEC from time to time.

There have been no material changes to the risk factors set forth in the Annual Report on Form 10-K filed with the SEC on March 22, 2022.  However, the risk factors described in this report and in the Annual Report on Form 10-K are not the

29

only risks that we face. Additional risks and uncertainties that we are unaware of, or that we currently believe are not material, may also become important factors that adversely affect our business. If any such risks materialize, it could have a material adverse effect on our business, financial condition, results of operations and growth prospects and cause the trading price of our common stock to decline.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

(a) Sale of Unregistered Securities

None.

(b) Use of Proceeds

On August 3, 2021, we closed our IPO, in which we issued and sold 15,525,000 shares of common stock at a price to the public of $13.00 per share, inclusive of 2,025,000 shares sold pursuant to the full exercise of the underwriters’ option to purchase additional shares. The IPO generated gross proceeds to us of $201.8 million. We received net proceeds of $184.3 million after deducting aggregate underwriting commissions and offering expenses of $17.6 million. All of the shares of common stock issued and sold in the offering were registered under the Securities Act of 1933, as amended (“Securities Act”) pursuant to a registration statement on Form S-1 (File No. 333-257810), which was declared effective by the SEC on July 29, 2021. The joint book-running managers of the offering were Cowen and Company, LLC, Stifel, Nicolaus & Company, Incorporated and William Blair & Company, L.L.C.

In connection with our IPO, no payments were made by us to directors, officers or persons owning ten percent or more of our common stock or to their associates or to our affiliates.

Cash used since the IPO is described in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of this report and our other periodic reports filed with the SEC. As of the date of this report, there has been no material change in the planned use of proceeds from the IPO as described in the final prospectus for our IPO.

Item 3. Defaults Upon Senior Securities.

Not applicable.

Item 4. Mine Safety Disclosures.

Not applicable.

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Item 5. Other Information.

Separation Agreement with Amanda L. Murphy

As previously reported in a Current Report on Form 8-K filed on April 12, 2022, Amanda L. Murphy, our former Chief Financial Officer, resigned from that position, effective as of April 15, 2022, or the Separation Date. On May 6, 2022, Ms. Murphy entered into an agreement, or the Separation Agreement, with us.

The Separation Agreement, which included a general release of claims in our favor, provides that Ms. Murphy will receive cash severance of $315,000, representing nine months of base salary in effect as of the Separation Date, payable in accordance with our standard payroll dates and subject to standard payroll deductions and withholdings. Ms. Murphy is also entitled to receive payments by us on her behalf for COBRA continuation of healthcare coverage, for her and her eligible dependents, until the earlier of nine months following the date the Consulting Agreement (defined below) terminates for any reason, the expiration of her eligibility for COBRA continuation coverage, or such time as Ms. Murphy becomes employed by another employer or self-employed through which she is eligible for health insurance.

On May 6, 2022, we and Ms. Murphy also entered into an agreement, or the Consulting Agreement, effective as of the Separation Date, pursuant to which Ms. Murphy will, at the request of our General Counsel or our Chief Accounting Officer, provide us with up to 10 hours of consulting services per week for a period of up to six months. During the term of the Consulting Agreement, Ms. Murphy will receive a consulting fee of $35,000 per month, prorated for any partial month. Ms. Murphy’s provision of services under the Consulting Agreement will constitute “Continuous Service” for purposes of continued vesting of her outstanding equity awards under our equity incentive plans.

The foregoing descriptions of the Separation Agreement and Consulting Agreement are qualified in their entirety by reference to the full text of the Separation Agreement and the Consulting Agreement, copies of which will be filed as exhibits to our Quarterly Report on Form 10-Q for the quarter ending June 30, 2022.

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Item 6. Exhibits.

The following exhibits are filed with this Quarterly Report on Form 10-Q:

		Incorporated by Reference
Exhibit Number	Description	Form	File No.	Exhibit	Filing Date
3.1	Amended and Restated Bylaws of the Registrant.	8-K	001-40674	3.1	August 4, 2021
3.2	Fifteenth Amended and Restated Certificate of Incorporation.	S-1	333-2578	3.1	July 26, 2021
31.1	Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	Inline XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101.SCH, 101.CAL, 101.DEF, 101.LAB and 101.PRE).

* This exhibit shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act of 1934, whether made before or after the date hereof and irrespective of any general incorporation language in such filing.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	MaxCyte Inc.
Date: May 9, 2022	By:	/s/ Douglas Doerfler
	Name:	Douglas Doerfler
	Title:	President and Chief Executive Officer
		(On Behalf of the Registrant)
Date: May 9, 2022	By:	/s/ Ron Holtz
	Name:	Ron Holtz
	Title:	Chief Financial Officer (Principal Financial Officer)

33

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Douglas Doerfler, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of MaxCyte, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(c) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 9, 2022	By:	/s/ Douglas Doerfler
	Name:	Douglas Doerfler
	Title:	President and Chief Executive Officer
		(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Ron Holtz, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of MaxCyte, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 9, 2022	By:	/s/ Ron Holtz
	Name:	Ron Holtz
	Title:	Chief Financial Officer (Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of MaxCyte Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: May 9, 2022	By:	/s/ Douglas Doerfler
	Name:	Douglas Doerfler
	Title:	President and Chief Executive Officer
		(Principal Executive Officer)

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of MaxCyte Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: May 9, 2022	By:	/s/ Ron Holtz
	Name:	Ron Holtz
	Title:	Chief Financial Officer (Principal Financial Officer)

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Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2022	Apr. 30, 2022
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2022
Entity File Number	001-40674
Entity Registrant Name	MaxCyte, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	52-2210438
Entity Address, Address Line One	22 Firstfield Road
Entity Address, Address Line Two	Suite 110
Entity Address, City or Town	Gaithersburg
Entity Address State Or Province	MD
Entity Address, Postal Zip Code	20878
City Area Code	301
Local Phone Number	944-1700
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	MXCT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		101,540,052
Entity Central Index Key	0001287098
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false

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Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 239,777,300	$ 47,782,400
Short-term investments, at amortized cost	6,498,600	207,261,400
Accounts receivable	8,627,800	6,877,000
Accounts receivable - TIA	2,119,200
Inventory	6,581,600	5,204,600
Prepaid expenses and other current assets	2,190,200	3,307,400
Total current assets	265,794,700	270,432,800
Property and equipment, net	13,203,700	7,681,200
Right of use asset - operating leases	10,901,900	5,689,300
Other assets	1,054,900	316,700
Total assets	290,955,200	284,120,000
Current liabilities:
Accounts payable	4,365,700	1,820,300
Accrued expenses and other	3,870,800	6,523,500
Operating lease liability, current	480,200	527,200
Deferred revenue, current portion	6,831,700	6,746,800
Total current liabilities	15,548,400	15,617,800
Operating lease liability, net of current portion	12,770,900	5,154,900
Other liabilities	451,100	450,200
Total liabilities	28,770,400	21,222,900
Commitments and contingencies (Note 8)
Stockholders' equity
Preferred stock, $0.01 par value; 5,000,000 shares authorized and no shares issued and outstanding at March 31, 2022 and December 31, 2021
Common stock, $0.01 par value; 400,000,000 shares authorized, 101,509,892 and 101,202,705 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively	1,015,100	1,012,000
Additional paid-in capital	379,541,500	376,189,600
Accumulated deficit	(118,371,800)	(114,304,500)
Total stockholders' equity	262,184,800	262,897,100
Total liabilities and stockholders' equity	$ 290,955,200	$ 284,120,000

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
Condensed Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	5,000,000	5,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	400,000,000	400,000,000
Common stock, issued (in shares)	101,509,892	101,202,705
Common stock, outstanding (in shares)	101,509,892	101,202,705

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Unaudited Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Unaudited Condensed Consolidated Statements of Operations
Revenue	$ 11,587,300	$ 6,494,900
Cost of goods sold	1,062,600	693,100
Gross profit	10,524,700	5,801,800
Operating expenses:
Research and development	3,765,300	6,076,300
Sales and marketing	3,838,700	2,789,100
General and administrative	6,632,500	2,997,900
Depreciation and amortization	447,300	311,600
Total operating expenses	14,683,800	12,174,900
Operating loss	(4,159,100)	(6,373,100)
Other income (expense):
Interest and other expense		(742,300)
Interest income	91,800	9,800
Total other income (expense)	91,800	(732,500)
Net loss	$ (4,067,300)	$ (7,105,600)
Basic net loss per share	$ (0.04)	$ (0.09)
Diluted net loss per share	$ (0.04)	$ (0.09)
Weighted average shares outstanding, basic	101,305,943	81,004,081
Weighted average shares outstanding, diluted	101,305,943	81,004,081

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Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($)	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balances, at Beginning of period at Dec. 31, 2020	$ 773,800	$ 127,673,900	$ (95,222,300)	$ 33,225,400
Balances, at Beginning of period, Shares at Dec. 31, 2020	77,382,473
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock	$ 57,400	51,751,500		51,808,900
Issuance of common stock, shares	5,740,000
Stock-based compensation expense		1,319,800		1,319,800
Exercise of stock options	$ 15,700	2,021,400		2,037,100
Exercise of stock options, shares	1,567,086
Net loss			(7,105,600)	(7,105,600)
Balances, at end of period at Mar. 31, 2021	$ 846,900	182,766,600	(102,327,900)	81,285,600
Balances, at end of period, Shares at Mar. 31, 2021	84,689,559
Balances, at Beginning of period at Dec. 31, 2021	$ 1,012,000	376,189,600	(114,304,500)	262,897,100
Balances, at Beginning of period, Shares at Dec. 31, 2021	101,202,705
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense		2,462,400		2,462,400
Exercise of stock options	$ 3,100	889,500		892,600
Exercise of stock options, shares	307,187
Net loss			(4,067,300)	(4,067,300)
Balances, at end of period at Mar. 31, 2022	$ 1,015,100	$ 379,541,500	$ (118,371,800)	$ 262,184,800
Balances, at end of period, Shares at Mar. 31, 2022	101,509,892

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Unaudited Condensed Consolidated Statements of Cash Flows £ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)	Mar. 31, 2021 USD ($)
Cash flows from operating activities:
Net loss	$ (4,067,300)	$ (7,105,600)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	487,400	315,900
Net book value of consigned equipment sold	32,800	1,600
Loss on disposal of fixed assets		6,100
Fair value adjustment of liability classified warrant		347,900
Stock-based compensation	2,462,400	1,319,800
Amortization of discounts on short-term investments	(33,200)	7,500
Non-cash interest expense		5,400
Changes in operating assets and liabilities:
Accounts receivable	(1,750,800)	877,600
Accounts receivable - TIA	(2,119,200)
Inventory	(1,377,000)	(287,900)
Other current assets	1,117,200	17,700
Right of use asset - operating leases	(5,212,600)	137,300
Right of use asset-finance lease		23,800
Other assets	(738,200)	(49,100)
Accounts payable, accrued expenses and other	(150,500)	(1,420,300)
Operating lease liability	7,569,000	(137,600)
Deferred revenue	84,900	1,224,400
Other liabilities	900	73,400
Net cash used in operating activities	(3,694,200)	(4,642,100)
Cash flows from investing activities:
Maturities of short-term investments	200,796,000	16,000,000
Purchases of property and equipment	(5,999,500)	(308,500)
Net cash provided by investing activities	194,796,500	15,691,500
Cash flows from financing activities:
Net proceeds from issuance of common stock		51,808,900
Principal payments on notes payable		(4,922,400)
Proceeds from exercise of stock options	892,600	2,037,100
Principal payments on finance leases		(24,500)
Net cash provided by financing activities	892,600	48,899,100
Net increase in cash and cash equivalents	191,994,900	59,948,500
Cash and cash equivalents, beginning of period	47,782,400	18,755,200
Cash and cash equivalents, end of period	239,777,300	78,703,700
Supplemental cash flow information:
Cash paid for interest		416,300
Supplemental disclosure of non-cash investing and financing activities:
Property and equipment purchases included in accounts payable	$ 43,200	$ 21,200

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Organization and Description of Business

3 Months Ended

Mar. 31, 2022

Organization and Description of Business

Organization and Description of Business

1.   Organization and Description of Business

MaxCyte, Inc. (the “Company”) is a global life sciences company focused on advancing the discovery, development and commercialization of next-generation cell therapies. The Company leverages its proprietary cell engineering technology platform to enable the programs of its biotechnology and pharmaceutical company customers who are engaged in cell therapy, including gene editing and immuno-oncology, as well as in drug discovery and development and biomanufacturing. The Company licenses and sells its instruments and technology and sells its consumables to developers of cell therapies and to pharmaceutical and biotechnology companies for use in drug discovery and development and biomanufacturing. In early 2020, the Company established a wholly owned subsidiary, CARMA Cell Therapies, Inc. (“CCTI”), as part of its development of CARMA, the Company’s proprietary, mRNA-based, clinical-stage, immuno-oncology cell therapy platform. CCTI ceased all material operations by the end of March 2021.

The COVID-19 pandemic has disrupted economic markets and the economic impact, duration and spread of related effects is uncertain at this time and difficult to predict. As a result, it is not possible to ascertain the overall future impact of COVID-19 on the Company’s business and, depending upon the extent and severity of such effects, including, but not limited to potential slowdowns in customer operations, extension of sales cycles, shrinkage in customer capital budgets or delays in customers’ clinical trials, the pandemic could have a material adverse effect on the Company’s business, results of operations, financial condition and cash flows. The Company has made adjustments to its operating, sales and marketing practices to mitigate the effects of COVID-19 restrictions which reduced planned spending, particularly on travel and marketing expenditures. In addition, COVID-19 restrictions may have delayed or slowed the research activities of some existing and prospective customers. It is not possible to quantify the impact of COVID-19 on the Company’s revenues and expenses to date or its expected impact on future periods.

The Company’s registration statement on Form S-1 related to its initial public offering of common stock in the United States (the “IPO”) was declared effective on July 29, 2021, and the Company’s common stock began trading on the Nasdaq Global Select Market on July 30, 2021. On August 3, 2021, the Company issued and sold 15,525,000 shares of common stock in the IPO at a price to the public of $13.00 per share, inclusive of 2,025,000 shares issued pursuant to the full exercise of the underwriters’ option to purchase additional shares. The IPO generated gross proceeds to the Company of $201.8 million. The Company received aggregate net proceeds of $184.3 million from the IPO after deducting aggregate underwriting commissions and offering costs of $17.6 million.

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2022

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

2.    Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the United States Securities and Exchange Commission (the “SEC”). In the Company’s opinion, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, which are necessary to present fairly the financial position, results of operations, and cash flows as of and for the periods presented. The condensed consolidated balance sheet at December 31, 2021 has been derived from audited consolidated financial statements as of that date. The unaudited condensed consolidated results of operations are not necessarily indicative of the results that may occur for the full fiscal year or any other future year or period. Certain information and footnotes disclosure normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to instructions, rules, and regulations prescribed by the SEC. The Company believes that the disclosures provided herein are adequate to make the information presented not misleading when these unaudited interim condensed consolidated financial statements are read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K filed with the SEC on March 22, 2022.

The prior year’s depreciation and amortization expenses included in individual functional operating expense categories were reclassified on the condensed consolidated statement of operations to one functional expense category “Depreciation and Amortization Expense” to conform with current year presentation. For the three months ended March 31, 2021, amounts totaling $311,600 was reclassified from other functional operating expenses to depreciation and amortization

expense. This reclassification did not impact the Company’s condensed consolidated balance sheets, statements of cash flows, and statements of changes in stockholders’ equity.

Significant Accounting Policies

The Company’s significant accounting policies are disclosed in the footnotes to its audited consolidated financial statements for the year ended December 31, 2021 included in its Annual Report on Form 10-K and have not materially changed during the three months ended March 31, 2022.

Basis of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, CCTI. All significant intercompany balances have been eliminated in consolidation.

Concentration of Significant Customers

Significant customers are those that accounted for 10% or more of the Company’s total revenue for the period or accounts receivable as the end of a reporting period. During the three months ended March 31, 2022 and 2021, one customer represented 33% and 18% of revenue, respectively. As of March 31, 2022, one customer accounted for 28% of accounts receivable. As of December 31, 2021, two customers accounted for 16% and 13% of accounts receivable, respectively.

Certain components included in the Company’s products are obtained from a single source or a limited group of suppliers. During the three months ended March 31, 2022, the Company purchased approximately 39% of its inventory from one supplier. During the three months ended March 31, 2021, the Company purchased approximately 58% of its inventory from two suppliers. As of March 31, 2022, none of the amounts payable to individual suppliers exceeded 10% of total accounts payable. At December 31, 2021, amounts payable to one supplier totaled 14% of total accounts payable.

Accounts Receivable

Accounts receivable are reduced by an allowance for doubtful accounts, if needed. The Company determined no allowance was necessary at March 31, 2022 or December 31, 2021.

Foreign Currency

The Company’s functional currency is the US dollar; transactions denominated in foreign currencies are subject to currency risk. The Company recognized $23,200 in foreign currency transaction losses and $19,700 in foreign currency transaction gains for the three months ended March 31, 2022 and 2021, respectively.

Leases

In transactions where the Company is the lessee, at the inception of a contract, the Company determines if the arrangement is, or contains, a lease. See Note 8 for additional details over leases where the Company is the lessee.

All transactions in which the Company is the lessor are short-term (one year or less) and have been classified as operating leases. All leases require upfront payments covering the full period of the lease and thus, there are no future payments expected to be received from existing leases. See Note 3 for details over revenue recognition related to lease agreements.

Loss Per Share

Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding during the period.

For periods of net income, and when the effects are not anti-dilutive, diluted earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of shares outstanding plus the impact of

all potential dilutive common shares, consisting primarily of common stock options and stock purchase warrants using the treasury stock method.

For periods of net loss, diluted loss per share is calculated similarly to basic loss per share because the impact of all dilutive potential common shares is anti-dilutive. The number of anti-dilutive shares excluded from the computation of diluted loss per share, consisting of shares underlying stock options, was 15.1 million for the three months ended March 31, 2022. The number of anti-dilutive shares excluded from the computation of diluted loss per share, consisting of shares underlying stock options and stock purchase warrants, was 12.1 million for the three months ended March 31, 2021.

Recent Accounting Pronouncements

New Accounting Pronouncements Not Yet Adopted

In June 2016, the Financial Accounting Standards Board (“FASB”) issued guidance with respect to measuring credit losses on financial instruments, including trade receivables. The guidance eliminates the probable initial recognition threshold that was previously required prior to recognizing a credit loss on financial instruments. The credit loss estimate can now reflect an entity’s current estimate of all future expected credit losses. Under the previous guidance, an entity only considered past events and current conditions. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The adoption of certain amendments of this guidance must be applied on a modified retrospective basis and the adoption of the remaining amendments must be applied on a prospective basis. The Company is currently evaluating the impact, if any, that this new accounting pronouncement will have on its consolidated financial statements.

The Company has evaluated all other issued and unadopted Accounting Standards Updates and believes the adoption of these standards will not have a material impact on its results of operations, financial position, or cash flows.

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Revenue

3 Months Ended

Mar. 31, 2022

Revenue

Revenue

3.    Revenue

Revenue is principally from the sale of instruments and processing assemblies, and extended warranties and the lease of instruments, which lease agreements also include customer-specific milestone payments. In some arrangements, products and services have been sold together representing distinct performance obligations. In these arrangements the Company allocates the sale price to the various performance obligations in the arrangement on a relative selling price basis. Under this basis, the Company determines the estimated selling price of each performance obligation in a manner that is consistent with that used to determine the price to sell the deliverable on a standalone basis.

Revenue is recognized at the time control is transferred to the customer and the performance obligation is satisfied. Revenue from the sale of instruments and processing assemblies is generally recognized at the time of shipment to the customer, provided that no significant vendor obligations remain and collectability is reasonably assured. Revenue from equipment leases is recognized ratably over the contractual term of the lease agreement and when specific milestones are achieved by a customer. Licensing fee revenue is recognized ratably over the license period. Revenue from fees for research services is recognized when services have been provided.

Disaggregation of Revenue

The following table depicts the disaggregation of revenue by type of contract:

	Three months ended March 31, 2022
	Revenue from		Revenue
	Contracts		from
	with		Lease		Total
	Customers		Elements		Revenue
Product sales	$	6,567,600	$	—	$	6,567,600
Lease elements		—		4,730,000		4,730,000
Other		289,700		—		289,700
Total	$	6,857,300	$	4,730,000	$	11,587,300

	Three months ended March 31, 2021
	Revenue from		Revenue
	Contracts		from
	with		Lease		Total
	Customers		Elements		Revenue
Product sales	$	4,075,800	$	—	$	4,075,800
Lease elements		—		2,255,900		2,255,900
Other		163,200		—		163,200
Total	$	4,239,000	$	2,255,900	$	6,494,900

Additional Disclosures Relating to Revenue from Contracts with Customers

Deferred revenue represents payments received for performance obligations not yet satisfied and is presented as current or long-term in the accompanying condensed consolidated balance sheets based on the expected timing and satisfaction of the underlying goods or services. Deferred revenue was $7.3 million and $7.2 million as of March 31, 2022 and December 31, 2021, respectively. During the three months ended March 31, 2022 and 2021, the Company recognized $2.6 million and $2.0 million, respectively, of revenue that was included in deferred revenue at the beginning of such periods.

Remaining contract consideration for which revenue has not been recognized due to unsatisfied performance obligations with a duration greater than one year at March 31, 2022 was $1,586,800, of which the Company expects to recognize $1,135,700 in one year or less, $231,600 in one to two years, $46,600 in two to three years, and $172,900 thereafter.

For the three months ended March 31, 2022 and 2021, the Company did not incur, and therefore did not defer, any material incremental costs to obtain contracts or costs to fulfill contracts.

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Debt

3 Months Ended

Mar. 31, 2022

Debt

Debt

4.    Debt

In November 2019, the Company entered into a new credit facility with MidCap Financial SBIC, LP (“MidCap”). The credit facility provided for a $5 million term loan maturing on November 1, 2024. The term loan provided for (i) an interest rate of one-month Libor plus 6.5% with a 1.5% Libor floor, (ii) monthly interest payments, (iii) 30 monthly principal payments of $166,700 beginning in June 2022 and (iv) a 3% final payment fee. The Company used the proceeds from the credit facility for general operating purposes. The debt was collateralized by substantially all assets of the Company. In March 2021, the Company repaid the MidCap loan in full. The Company incurred fees of $260,000 associated with early repayment of the loan. The unamortized debt discounts and fees were expensed and recorded as interest expense.

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Stockholders' Equity

3 Months Ended

Mar. 31, 2022

Stockholders' Equity

Stockholders' Equity

5.    Stockholders’ Equity

Common Stock

In February 2021, the Company completed an equity capital raise issuing 5,740,000 shares of its common stock at a price of ₤7.00 (or approximately $9.64) per share. The transaction generated gross proceeds of ₤40.2 million (or $55.3 million). In conjunction with the transaction, the Company incurred costs of $3.5 million which resulted in the Company receiving net proceeds of $51.8 million.

In August 2021, the Company completed the IPO and received aggregate net proceeds of $184.3 million (see Note 1).

Preferred Stock

In July 2021, upon shareholder approval, the Company was authorized to issue 5,000,000 shares of preferred stock, par value $0.01 per share. As of March 31, 2022 and December 31, 2021, no shares of preferred stock were issued or outstanding.

Warrant

In connection with the November 2019 credit facility (see Note 4), the Company issued the lender a warrant to purchase 71,168 shares of common stock at an exercise price of £1.09081 per share. The warrant was exercisable at any time through the tenth anniversary of issuance. The warrant was classified as a liability at issuance, as its strike price was in a currency other than the Company’s functional currency. The warrant was recorded at its fair value at the end of each reporting period thereafter with changes from the prior balance sheet date recorded on the condensed consolidated statements of operations (see Note 7).

In a cashless settlement in August 2021, the lender fully exercised the warrant in exchange for 64,603 shares of common stock.

Stock Options

The Company adopted the MaxCyte, Inc. Long-Term Incentive Plan (the “Plan”) in January 2016 to amend and restate the MaxCyte 2000 Long-Term Incentive Plan to provide for the awarding of (i) stock options, (ii) restricted stock, (iii) incentive shares, and (iv) performance awards to employees, officers, and Directors of the Company and to other individuals as determined by the Board of Directors. Under the Plan, as amended, the maximum number of shares of Common Stock of the Company that the Company may issue is increased by ten percent (10%) of the shares that are issued and outstanding at the time awards are made under the Plan. On December 10, 2019 and October 27, 2020, the Company’s Board resolved to increase the number of shares available for grant under the Plan by 3,000,000 and 1,500,000, respectively.

In December 2021, the Company adopted the MaxCyte, Inc. 2021 Inducement Plan (the “Inducement Plan”) to provide for the awarding of (i) non-statutory Stock Options; (ii) stock appreciation rights; (iii) restricted stock awards; (iv) restricted stock unit awards; (v) performance awards; and (vi) other awards only to persons eligible to receive grants of awards who satisfy the standards for inducement grants under Nasdaq Marketplace Rule 5635(c)(4) or 5635(c)(3), if applicable, and the related guidance under Nasdaq IM 5635-1. The Inducement Plan reserved 2,500,000 shares for issuance under awards, and as of December 31, 2021 no awards had been granted. As of March 31, 2022, options to purchase 237,200 shares had been granted under the Inducement Plan.

At March 31, 2022, there were 1,791,494 and 2,271,800 shares available to be issued under the Plan and Inducement Plan, respectively. At December 31, 2021, there were 4,491,162 and 2,500,000 shares available to be issued under the Plan and Inducement Plan, respectively.

The weighted-average fair value of the options granted during the three months ended March 31, 2022 and 2021 was estimated to be $6.93 and $14.33, respectively.

The value of an option award is recognized as expense on a straight-line basis over the requisite service period. At March 31, 2022, total unrecognized compensation expense was $35,409,200, which will be recognized over the next 3.3 years.

The Company recorded stock-based compensation expense in the following expense categories of its condensed consolidated statements of operations:

	Three months ended March 31,
	2022		2021
General and administrative	$	1,292,100	$	741,700
Sales and marketing		662,800		269,200
Research and development		507,500		308,900
Total	$	2,462,400	$	1,319,800

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Consolidated Balance Sheet Components

3 Months Ended

Mar. 31, 2022

Consolidated Balance Sheet Components

Consolidated Balance Sheet Components

6. Consolidated Balance Sheet Components

Inventory

Inventory is carried at the lower of cost or net realizable value. The following tables show the components of inventory:

	March 31,		December 31,
	2022		2021
Raw materials inventory	$	3,622,800	$	2,684,100
Finished goods inventory		2,958,800		2,520,500
Total inventory	$	6,581,600	$	5,204,600

The Company determined no allowance for obsolescence was necessary at March 31, 2022 or December 31, 2021.

Property and Equipment

Property and equipment are stated at cost. Depreciation is computed using the straight-line method. Leasehold improvements are amortized over the shorter of the estimated lease term or useful life.

Property and equipment include capitalized costs to develop internal-use software.  Applicable costs are capitalized during the development stage of the project and include direct internal costs, third-party costs and allocated interest expenses as appropriate.

Property and equipment consisted of the following:

	March 31,		December 31,
	2022		2021
Furniture and equipment	$	5,433,200	$	4,914,500
Instruments		3,225,100		3,208,900
Leasehold improvements		641,400		641,400
Internal-use software and other assets under development		6,085,600		1,163,200
Internal-use software		2,667,300		2,125,600
Accumulated depreciation and amortization		(4,848,900)		(4,372,400)
Property and equipment, net	$	13,203,700	$	7,681,200

During the three months ended March 31, 2022 and 2021, the Company transferred $49,400 and $139,800, respectively, of instruments previously classified as inventory to property and equipment leased to customers.

For the three ended March 31, 2022 and 2021, the Company incurred depreciation and amortization expense of $487,400 and $315,900, respectively.

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Fair Value

3 Months Ended

Mar. 31, 2022

Fair Value

Fair Value

7.    Fair Value

The Company’s condensed consolidated balance sheets include various financial instruments (primarily cash and cash equivalents, accounts receivable and accounts payable) that are carried at cost, which approximates fair value due to the short-term nature of the instruments.

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The Company had an outstanding warrant accounted for as a liability and measured at fair value on a recurring basis, using Level 3 inputs. The lender exercised the warrant, in whole, in August 2021 (see Note 5). The Company did not have any outstanding warrants at March 31, 2022 and December 31, 2021.

The following table presents the activity for those items measured at fair value on a recurring basis using Level 3 inputs for the three months ended March 31, 2021:

	Mark-to-market liabilities – warrant
	Three Months Ended
	March 31,
	2021
Balance, beginning of period	$	441,200
Change in fair value		347,900
Balance, end of period	$	789,100

The gains and losses resulting from the changes in the fair value of the liability classified warrant were classified as other interest income or interest and other expense in the accompanying condensed consolidated statements of operations.

The Company has no other financial assets or liabilities measured at fair value on a recurring basis.

Financial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

Money market funds, commercial paper and corporate debt instruments classified as held-to-maturity are measured at fair value on a non-recurring basis when they are deemed to be impaired on an other-than-temporary basis. No such fair value impairment was recognized during the three months ended March 31, 2022 or 2021.

The following table summarizes the Company’s financial instruments that were measured at fair value on a non-recurring basis at March 31, 2022:

				Gross		Gross
		Amortized		unrecognized		unrecognized		Aggregate
Description	Classification	cost		holding gains		holding losses		fair value
Money market funds	Cash equivalents	$	234,975,600	$	—	$	—	$	234,975,600
Commercial paper	Short-term investments		6,498,600		—		(2,400)		6,496,200
Total cash equivalents and short-term investments		$	241,474,200	$	—	$	(2,400)	$	241,471,800

The following table summarizes the Company’s financial instruments that were measured at fair value on a non-recurring basis at December 31, 2021:

				Gross		Gross
		Amortized		unrecognized		unrecognized		Aggregate
Description	Classification	cost		holding gains		holding losses		fair value
Money market funds	Cash equivalents	$	19,341,500	$	—	$	—	$	19,341,500
Commercial paper	Cash equivalents		25,492,200		4,400		—		25,496,600
Corporate debt	Short-term investments		4,909,200		—		(1,800)		4,907,400
Commercial paper	Short‑term investments		202,352,200		22,900		—		202,375,100
Total cash equivalents and short-term investments		$	252,095,100	$	27,300	$	(1,800)	$	252,120,600

At times the Company’s cash balances may exceed federally insured limits and cash may also be deposited in foreign bank accounts that are not covered by federal deposit insurance. The Company does not believe that this results in any significant credit risk.

Non-Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The Company has no non-financial assets and liabilities that are measured at fair value on a recurring basis.

Non-Financial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The Company measures its long-lived assets, including property and equipment, at fair value on a non-recurring basis. These assets are recognized at fair value when they are deemed to be impaired. No fair value impairment was recognized during the three months ended March 31, 2022 and 2021.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies.

Commitments and Contingencies

8.  Commitments and Contingencies

Operating Leases

The Company is a party to various leases for office and laboratory space. A member of the Company’s Board of Directors is the CEO and Board member of the lessor of certain of these leases for which the rent payments totaled $163,700 and $158,700 in the three months ended March 31, 2022 and 2021, respectively. The Company’s Chairman is also a Board member of the lessor.

In 2021, the Company entered into an operating lease agreement, as amended, for new office and manufacturing space (the “2021 Lease”). The 2021 Lease consists of three phases, with Phase 1 having commenced in December 2021 and Phase 2 having commenced in the first quarter of 2022. Phase 3 is estimated to commence in the first quarter of 2023. The lease term for all phases is expected to expire on August 31, 2035. The Company will design and construct the leasehold improvements with the approval of the landlord. The 2021 Lease agreement includes a landlord-provided tenant improvement allowance (“TIA”) of $6.3 million, which will be applied to the cost of construction of leasehold improvements. As of March 31, 2022, the Company had outstanding invoices for TIA reimbursement totalling $2.1 million. Under the 2021 Lease, the Company has three five-year options to extend the term of the lease. However, the Company is not reasonably certain to exercise any of these options. The total incremental non-cancellable lease payments under the 2021 Lease are approximately $29.6 million over the lease term.

Finance Leases

In August 2021, the Company exercised its purchase option under a finance lease and acquired the associated leased laboratory equipment. At March 31, 2022 and December 31, 2021, the Company had no right-of-use finance asset or lease liability.

All Leases

The components of lease cost and supplemental balance sheet information for the Company’s lease portfolio were as follows:

	Three months ended March 31,
	2022		2021
Finance lease cost
Amortization of right-of-use asset	$	—	$	23,800
Interest on expense		—		3,200
Operating lease cost		416,300		172,500
Short-term lease cost		12,100		8,900
Variable lease cost		75,400		75,600
Total lease cost	$	503,800	$	284,000

	As of March 31,		As of December 31,
	2022		2021
Operating leases
Assets:
Operating lease right-of-use assets	$	10,901,900	$	5,689,300
Liabilities
Current portion of operating lease liabilities	$	480,200	$	527,200
Operating lease liabilities, net of current portion		12,770,900		5,154,900
Total operating lease liabilities	$	13,251,100	$	5,682,100
Other information
Weighted-average remaining lease term (in years)		12.8		11.7
Weighted-average discount rate		6.6%		6.6%

As of March 31, 2022, maturities of lease liabilities that had commenced prior to March 31, 2022 were as follows:

	Operating Leases
Remainder of 2022	$	660,200
2023		1,631,400
2024		1,734,500
2025		1,777,700
2026 and thereafter		19,653,100
Total undiscounted lease payments		25,456,900
Discount factor		(11,318,800)
Present value of lease liabilities	$	14,138,100

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Subsequent Events

3 Months Ended

Mar. 31, 2022

Subsequent Events

Subsequent Events

9. Subsequent Events.

On April 12, 2022, Amanda L. Murphy resigned from her position as Chief Financial Officer, effective April 15, 2022 and was replaced by Ron Holtz as Interim Chief Financial Officer. On May 6, 2022, the Company entered into a severance agreement and a consulting agreement with Ms. Murphy.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2022

Summary of Significant Accounting Policies

Basis of Presentation

Basis of Presentation

The accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the United States Securities and Exchange Commission (the “SEC”). In the Company’s opinion, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, which are necessary to present fairly the financial position, results of operations, and cash flows as of and for the periods presented. The condensed consolidated balance sheet at December 31, 2021 has been derived from audited consolidated financial statements as of that date. The unaudited condensed consolidated results of operations are not necessarily indicative of the results that may occur for the full fiscal year or any other future year or period. Certain information and footnotes disclosure normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to instructions, rules, and regulations prescribed by the SEC. The Company believes that the disclosures provided herein are adequate to make the information presented not misleading when these unaudited interim condensed consolidated financial statements are read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K filed with the SEC on March 22, 2022.

The prior year’s depreciation and amortization expenses included in individual functional operating expense categories were reclassified on the condensed consolidated statement of operations to one functional expense category “Depreciation and Amortization Expense” to conform with current year presentation. For the three months ended March 31, 2021, amounts totaling $311,600 was reclassified from other functional operating expenses to depreciation and amortization

expense. This reclassification did not impact the Company’s condensed consolidated balance sheets, statements of cash flows, and statements of changes in stockholders’ equity.

Basis of Consolidation

Basis of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, CCTI. All significant intercompany balances have been eliminated in consolidation.

Concentration of Significant Customers

Concentration of Significant Customers

Significant customers are those that accounted for 10% or more of the Company’s total revenue for the period or accounts receivable as the end of a reporting period. During the three months ended March 31, 2022 and 2021, one customer represented 33% and 18% of revenue, respectively. As of March 31, 2022, one customer accounted for 28% of accounts receivable. As of December 31, 2021, two customers accounted for 16% and 13% of accounts receivable, respectively.

Certain components included in the Company’s products are obtained from a single source or a limited group of suppliers. During the three months ended March 31, 2022, the Company purchased approximately 39% of its inventory from one supplier. During the three months ended March 31, 2021, the Company purchased approximately 58% of its inventory from two suppliers. As of March 31, 2022, none of the amounts payable to individual suppliers exceeded 10% of total accounts payable. At December 31, 2021, amounts payable to one supplier totaled 14% of total accounts payable.

Accounts Receivable

Accounts Receivable

Accounts receivable are reduced by an allowance for doubtful accounts, if needed. The Company determined no allowance was necessary at March 31, 2022 or December 31, 2021.

Foreign Currency

Foreign Currency

The Company’s functional currency is the US dollar; transactions denominated in foreign currencies are subject to currency risk. The Company recognized $23,200 in foreign currency transaction losses and $19,700 in foreign currency transaction gains for the three months ended March 31, 2022 and 2021, respectively.

Leases

Leases

In transactions where the Company is the lessee, at the inception of a contract, the Company determines if the arrangement is, or contains, a lease. See Note 8 for additional details over leases where the Company is the lessee.

All transactions in which the Company is the lessor are short-term (one year or less) and have been classified as operating leases. All leases require upfront payments covering the full period of the lease and thus, there are no future payments expected to be received from existing leases. See Note 3 for details over revenue recognition related to lease agreements.

Loss Per Share

Loss Per Share

Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding during the period.

For periods of net income, and when the effects are not anti-dilutive, diluted earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of shares outstanding plus the impact of

all potential dilutive common shares, consisting primarily of common stock options and stock purchase warrants using the treasury stock method.

For periods of net loss, diluted loss per share is calculated similarly to basic loss per share because the impact of all dilutive potential common shares is anti-dilutive. The number of anti-dilutive shares excluded from the computation of diluted loss per share, consisting of shares underlying stock options, was 15.1 million for the three months ended March 31, 2022. The number of anti-dilutive shares excluded from the computation of diluted loss per share, consisting of shares underlying stock options and stock purchase warrants, was 12.1 million for the three months ended March 31, 2021.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

New Accounting Pronouncements Not Yet Adopted

In June 2016, the Financial Accounting Standards Board (“FASB”) issued guidance with respect to measuring credit losses on financial instruments, including trade receivables. The guidance eliminates the probable initial recognition threshold that was previously required prior to recognizing a credit loss on financial instruments. The credit loss estimate can now reflect an entity’s current estimate of all future expected credit losses. Under the previous guidance, an entity only considered past events and current conditions. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The adoption of certain amendments of this guidance must be applied on a modified retrospective basis and the adoption of the remaining amendments must be applied on a prospective basis. The Company is currently evaluating the impact, if any, that this new accounting pronouncement will have on its consolidated financial statements.

The Company has evaluated all other issued and unadopted Accounting Standards Updates and believes the adoption of these standards will not have a material impact on its results of operations, financial position, or cash flows.

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Revenue (Tables)

3 Months Ended

Mar. 31, 2022

Revenue

Schedule of disaggregation of revenue

	Three months ended March 31, 2022
	Revenue from		Revenue
	Contracts		from
	with		Lease		Total
	Customers		Elements		Revenue
Product sales	$	6,567,600	$	—	$	6,567,600
Lease elements		—		4,730,000		4,730,000
Other		289,700		—		289,700
Total	$	6,857,300	$	4,730,000	$	11,587,300

	Three months ended March 31, 2021
	Revenue from		Revenue
	Contracts		from
	with		Lease		Total
	Customers		Elements		Revenue
Product sales	$	4,075,800	$	—	$	4,075,800
Lease elements		—		2,255,900		2,255,900
Other		163,200		—		163,200
Total	$	4,239,000	$	2,255,900	$	6,494,900

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Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2022

Stockholders' Equity

Schedule of stock-based compensation expense

	Three months ended March 31,
	2022		2021
General and administrative	$	1,292,100	$	741,700
Sales and marketing		662,800		269,200
Research and development		507,500		308,900
Total	$	2,462,400	$	1,319,800

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Consolidated Balance Sheet Components (Tables)

3 Months Ended

Mar. 31, 2022

Consolidated Balance Sheet Components

Schedule of inventory

	March 31,		December 31,
	2022		2021
Raw materials inventory	$	3,622,800	$	2,684,100
Finished goods inventory		2,958,800		2,520,500
Total inventory	$	6,581,600	$	5,204,600

Schedule of property and equipment

	March 31,		December 31,
	2022		2021
Furniture and equipment	$	5,433,200	$	4,914,500
Instruments		3,225,100		3,208,900
Leasehold improvements		641,400		641,400
Internal-use software and other assets under development		6,085,600		1,163,200
Internal-use software		2,667,300		2,125,600
Accumulated depreciation and amortization		(4,848,900)		(4,372,400)
Property and equipment, net	$	13,203,700	$	7,681,200

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Fair Value (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value

Schedule of activity for items measured at fair value on a recurring basis using Level 3 inputs

	Mark-to-market liabilities – warrant
	Three Months Ended
	March 31,
	2021
Balance, beginning of period	$	441,200
Change in fair value		347,900
Balance, end of period	$	789,100

Summary of the Company's cash equivalents and investments

The following table summarizes the Company’s financial instruments that were measured at fair value on a non-recurring basis at March 31, 2022:

				Gross		Gross
		Amortized		unrecognized		unrecognized		Aggregate
Description	Classification	cost		holding gains		holding losses		fair value
Money market funds	Cash equivalents	$	234,975,600	$	—	$	—	$	234,975,600
Commercial paper	Short-term investments		6,498,600		—		(2,400)		6,496,200
Total cash equivalents and short-term investments		$	241,474,200	$	—	$	(2,400)	$	241,471,800

The following table summarizes the Company’s financial instruments that were measured at fair value on a non-recurring basis at December 31, 2021:

				Gross		Gross
		Amortized		unrecognized		unrecognized		Aggregate
Description	Classification	cost		holding gains		holding losses		fair value
Money market funds	Cash equivalents	$	19,341,500	$	—	$	—	$	19,341,500
Commercial paper	Cash equivalents		25,492,200		4,400		—		25,496,600
Corporate debt	Short-term investments		4,909,200		—		(1,800)		4,907,400
Commercial paper	Short‑term investments		202,352,200		22,900		—		202,375,100
Total cash equivalents and short-term investments		$	252,095,100	$	27,300	$	(1,800)	$	252,120,600

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies.

Schedule of lease costs

	Three months ended March 31,
	2022		2021
Finance lease cost
Amortization of right-of-use asset	$	—	$	23,800
Interest on expense		—		3,200
Operating lease cost		416,300		172,500
Short-term lease cost		12,100		8,900
Variable lease cost		75,400		75,600
Total lease cost	$	503,800	$	284,000

Schedule of operating lease assets, liabilities and other information

	As of March 31,		As of December 31,
	2022		2021
Operating leases
Assets:
Operating lease right-of-use assets	$	10,901,900	$	5,689,300
Liabilities
Current portion of operating lease liabilities	$	480,200	$	527,200
Operating lease liabilities, net of current portion		12,770,900		5,154,900
Total operating lease liabilities	$	13,251,100	$	5,682,100
Other information
Weighted-average remaining lease term (in years)		12.8		11.7
Weighted-average discount rate		6.6%		6.6%

Schedule of maturities of operating lease liabilities

	Operating Leases
Remainder of 2022	$	660,200
2023		1,631,400
2024		1,734,500
2025		1,777,700
2026 and thereafter		19,653,100
Total undiscounted lease payments		25,456,900
Discount factor		(11,318,800)
Present value of lease liabilities	$	14,138,100

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Organization and Description of Business (Details)		1 Months Ended		3 Months Ended
	Aug. 03, 2021 USD ($) $ / shares shares	Aug. 31, 2021 USD ($)	Feb. 28, 2021 USD ($) $ / shares shares	Mar. 31, 2022 USD ($)	Mar. 31, 2021 USD ($)	Feb. 28, 2021 £ / shares
Product Information [Line Items]
Operating expenses				$ 14,683,800	$ 12,174,900
Preclinical research and clinical activities ongoing expenses				$ 3,765,300	$ 6,076,300
Shares issued | shares			5,740,000
Share price | (per share)			$ 9.64			£ 7.00
Payment of underwriting commissions and offering costs			$ 3,500,000
IPO
Product Information [Line Items]
Shares issued | shares	15,525,000
Share price | $ / shares	$ 13.00
Gross proceeds	$ 201,800,000
Net proceeds	184,300,000	$ 184,300,000
Payment of underwriting commissions and offering costs	$ 17,600,000
Underwriter's option
Product Information [Line Items]
Shares issued | shares	2,025,000

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Summary of Significant Accounting Policies - Concentration of Significant Customers (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2022 USD ($) customer item	Mar. 31, 2021 USD ($) customer item	Dec. 31, 2021 USD ($) customer item
Depreciation and amortization
Reclassified depreciation and amortization | $		$ 311,600
Allowance for doubtful accounts
Allowance for doubtful accounts | $	$ 0		$ 0
Revenue. | Customer concentration risk | Customer one
Concentration Risk [Line Items]
Number of major customers	1	1
Concentration risk percentage	33.00%	18.00%
Accounts receivable | Customer concentration risk | Customer one
Concentration Risk [Line Items]
Number of major customers	1
Concentration risk percentage	28.00%		16.00%
Accounts receivable | Customer concentration risk | Customer two
Concentration Risk [Line Items]
Number of major customers			2
Concentration risk percentage			13.00%
Inventory | Supplier concentration risk | Major suppliers
Concentration Risk [Line Items]
Concentration risk percentage	39.00%	58.00%
Number of major suppliers | item	1	2
Accounts payable | Supplier concentration risk | Supplier one
Concentration Risk [Line Items]
Number of major suppliers | item			1
Accounts payable | Supplier concentration risk | Customer one | Supplier one
Concentration Risk [Line Items]
Concentration risk percentage			14.00%

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Summary of Significant Accounting Policies - Foreign Currency (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Summary of Significant Accounting Policies
Foreign currency transaction gains (losses)	$ (23,200)	$ 19,700

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Summary of Significant Accounting Policies - Loss Per Share (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Loss Per Share
Anti-dilutive shares excluded from the computation of diluted loss per share	15.1	12.1

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Revenue - Disaggregation of revenue (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	$ 6,857,300	$ 4,239,000
Revenue from Lease Elements	4,730,000	2,255,900
Total Revenue	11,587,300	6,494,900
Product sales
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	6,567,600	4,075,800
Total Revenue	6,567,600	4,075,800
Other
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	289,700	163,200
Total Revenue	$ 289,700	$ 163,200

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Revenue - Changes in deferred revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Change in Contract with Customer, Liability [Abstract]
Deferred revenue	$ 7.3		$ 7.2
Revenue recognized	$ 2.6	$ 2.0

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Revenue - Performance Obligations (Details)	Mar. 31, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 1,586,800
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 1,135,700
Remaining performance obligation expects to recognize as revenue	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 231,600
Remaining performance obligation expects to recognize as revenue	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 46,600
Remaining performance obligation expects to recognize as revenue	3 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 172,900
Remaining performance obligation expects to recognize as revenue	0 years

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Debt (Details)	1 Months Ended	3 Months Ended
	Nov. 30, 2019 USD ($) item	Mar. 31, 2021 USD ($)
Debt Instrument [Line Items]
Early repayment fees		$ 260,000
Term Loan
Debt Instrument [Line Items]
Principal amount	$ 5,000,000
Number of monthly principal payments | item	30
Frequency of principal payments	monthly
Periodic principal payments	$ 166,700
Final payment fee percentage	3.00%
Term Loan | Libor
Debt Instrument [Line Items]
Basis spread over LIBOR	6.50%
Libor floor rate	1.50%

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Stockholders' Equity - Common Stock (Details) £ / shares in Units, $ / shares in Units, £ in Millions		1 Months Ended			3 Months Ended
	Aug. 03, 2021 USD ($) $ / shares shares	Aug. 31, 2021 USD ($)	Feb. 28, 2021 USD ($) $ / shares shares	Feb. 28, 2021 GBP (£) shares	Mar. 31, 2022 USD ($) $ / shares shares	Mar. 31, 2021 USD ($)	Dec. 31, 2021 $ / shares shares	Jul. 31, 2021 $ / shares shares	Feb. 28, 2021 £ / shares
Class of Stock [Line Items]
Shares issued | shares			5,740,000	5,740,000
Share price | (per share)			$ 9.64						£ 7.00
Gross proceeds			$ 55,300,000	£ 40.2		$ 51,808,900
Exercise of stock options					$ 892,600	2,037,100
Proceeds from exercise of stock options					$ 892,600	$ 2,037,100
Cost incurred			3,500,000
Net proceeds			$ 51,800,000
Preferred stock, authorized (in shares) | shares					5,000,000		5,000,000	5,000,000
Preferred stock, par value (in dollars per share) | $ / shares					$ 0.01		$ 0.01	$ 0.01
Preferred stock, issued (in shares) | shares					0		0
Preferred stock, outstanding (in shares) | shares					0		0
IPO
Class of Stock [Line Items]
Shares issued | shares	15,525,000
Share price | $ / shares	$ 13.00
Cost incurred	$ 17,600,000
Proceeds from Issuance Initial Public Offering	$ 184,300,000	$ 184,300,000

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Stockholders' Equity - Warrant (Details) - £ / shares	1 Months Ended
	Aug. 31, 2021	Nov. 30, 2019
Stockholders' Equity
Warrant to purchase common Stock		71,168
Warrant exercise price		£ 1.09081
Number of shares issued with exercising of warrant	64,603

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Stockholders' Equity - Stock Options (Details) - USD ($)			3 Months Ended		12 Months Ended
	Oct. 27, 2020	Dec. 10, 2019	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020
Long-Term Incentive Plan , 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items].
Percentage of increase in the number of stock options						10.00%
Increase the number of stock options	1,500,000	3,000,000
Awards available to be issued			1,791,494		4,491,162
Weighted-average fair value of the options granted			$ 6.93	$ 14.33
Unrecognized compensation expense			$ 35,409,200
Unrecognized compensation expense, recognition period			3 years 3 months 18 days
Inducement Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items].
Awards available to be issued			2,271,800		2,500,000
Number of awards reserved (in shares)					2,500,000
Granted (in shares)			237,200		0

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Stockholders' Equity - Stock-based compensation expense (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 2,462,400	$ 1,319,800
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	1,292,100	741,700
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	662,800	269,200
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 507,500	$ 308,900

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Consolidated Balance Sheet Components - Inventory (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Consolidated Balance Sheet Components
Raw materials inventory	$ 3,622,800	$ 2,684,100
Finished goods inventory	2,958,800	2,520,500
Total inventory	6,581,600	5,204,600
Allowance for obsolescence	$ 0	$ 0

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Consolidated Balance Sheet Components - Property and equipment, Net (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Property and equipment, Net
Accumulated depreciation and amortization	$ (4,848,900)		$ (4,372,400)
Property and equipment, net	13,203,700		7,681,200
Transfer of instruments	49,400	$ 139,800
Depreciation and amortization	487,400	$ 315,900
Furniture and equipment
Property and equipment, Net
Property and equipment, gross	5,433,200		4,914,500
Instruments
Property and equipment, Net
Property and equipment, gross	3,225,100		3,208,900
Leasehold improvements
Property and equipment, Net
Property and equipment, gross	641,400		641,400
Internal-use software and other assets under development
Property and equipment, Net
Property and equipment, gross	6,085,600		1,163,200
Internal-use software
Property and equipment, Net
Property and equipment, gross	$ 2,667,300		$ 2,125,600

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Fair Value - Activity of items measured at fair value on a recurring basis using Level 3 inputs (Details) - Mark-to-market liabilities , warrant - Recurring basis - Level 3	3 Months Ended
	Mar. 31, 2021 USD ($)
Activity for items measured at fair value on a recurring basis using Level 3 inputs
Balance, beginning of periods	$ 441,200
Change in fair value	347,900
Balance, end of periods	$ 789,100

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Fair Value - Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Details) - Non-recurring basis - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of short-term investments	$ 0	$ 0
Impairment of long-lived assets	$ 0	$ 0

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Fair Value - Financial Instruments (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Cash and Cash Equivalents [Line Items]
Amortized cost	$ 241,474,200	$ 252,095,100
Gross unrecognized holding gains		27,300
Gross unrecognized holding losses	(2,400)	(1,800)
Aggregate fair value	241,471,800	252,120,600
Commercial paper
Cash and Cash Equivalents [Line Items]
Amortized cost		202,352,200
Gross unrecognized holding gains		22,900
Aggregate fair value		202,375,100
Money market funds
Cash and Cash Equivalents [Line Items]
Amortized cost	234,975,600	19,341,500
Aggregate fair value	234,975,600	19,341,500
Corporate debt
Cash and Cash Equivalents [Line Items]
Amortized cost		4,909,200
Gross unrecognized holding losses		(1,800)
Aggregate fair value		4,907,400
Commercial paper
Cash and Cash Equivalents [Line Items]
Amortized cost	6,498,600	25,492,200
Gross unrecognized holding gains		4,400
Gross unrecognized holding losses	(2,400)
Aggregate fair value	$ 6,496,200	$ 25,496,600

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Commitments and Contingencies - Operating Leases (Details)	3 Months Ended
	Mar. 31, 2022 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($) item
Commitments and Contingencies
Incremental non-cancellable lease payments	$ 25,456,900
Accounts receivable - TIA	2,119,200
Chairman of the Board along with a Director | Lease Agreement
Commitments and Contingencies
Lease rent payments	163,700	$ 158,700
New Office and Manufacturing Space
Commitments and Contingencies
Operating lease, number of phases			3
Right to terminate phase of lease option number | item			3
Incremental non-cancellable lease payments			$ 29,600,000
Tenant improvement allowance			$ 6,300,000
Accounts receivable - TIA	$ 2,100,000
Renewal term			5 years

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Commitments and Contingencies - Finance Leases (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Commitments and Contingencies.
Finance lease, right-of-use asset	$ 0	$ 0
Finance Lease, Liability	$ 0	$ 0

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Commitments and Contingencies - Lease costs (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Finance lease cost
Amortization of right-of-use asset		$ 23,800
Interest on expense		3,200
Operating lease cost	$ 416,300	172,500
Short-term lease cost	12,100	8,900
Variable lease cost	75,400	75,600
Total lease cost	503,800	$ 284,000
Assets:
Operating lease right-of-use assets	10,901,900		$ 5,689,300
Liabilities
Current portion of operating lease liabilities	480,200		527,200
Operating lease liabilities, net of current portion	12,770,900		5,154,900
Total operating lease liabilities	$ 13,251,100		$ 5,682,100
Other information
Weighted-average remaining lease term (in years)	12 years 9 months 18 days		11 years 8 months 12 days
Weighted-average discount rate%	6.60%		6.60%

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Commitments and Contingencies - Maturities of lease liabilities (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Maturities of operating lease liabilities
Remainder of 2022	$ 660,200
2023	1,631,400
2024	1,734,500
2025	1,777,700
2026 and thereafter	19,653,100
Total undiscounted lease payments	25,456,900
Discount factor	(11,318,800)
Present value of lease liabilities	14,138,100
Maturities of finance lease liabilities
Present value of lease liabilities	$ 0	$ 0