Slide 1: Announces Acquisition of RedWave Technology
Announces Acquisition of APRIL 30th 2024
Slide 2: Forward looking statements
Forward looking statements This presentation and the accompanying oral presentation (this “presentation”) contain forward-looking statements which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Thes
Slide 3: Transaction Highlights
Transaction Highlights Higher Growth, Improved Margins, Faster Path to Profitability High growth & profitable RedWave Technology FY23*: Approx. Revenues of $13.7M (20%+ YoY) at 52% GMs and +15% operating margin Expansion of 908’s Forensics toolbox Product suite now includes market leading, complemen
Slide 4: Transaction Terms
Transaction Terms Structure aligned to value creation with $53.5M upfront + $23M milestone potential Upfront Consideration $45M from cash-on-hand at closing + 1.5M shares ($8.5M as of 4/26/24) subject to 6 mo. lockup Milestone Consideration + Up to additional 4.0M shares of milestone consideration p
Slide 5: Innovation Leader of Optical Spectroscopy
Innovation Leader of Optical Spectroscopy Rapid ID of ‘Bulk’ Chemicals, Drugs, Toxics, Explosives IDENTIFY REPLACING FIELDED DEVICES >22,000 15,000+ >700 chemicals in bulk form outdated FTIRs since 2020 launch Use Cases: First Customs/ Postal Visible Drugs & Unknown Responders Inspection White Powde
Slide 6: Innovation Leader of Optical Spectroscopy: Gas/Vapor Identification
Innovation Leader of Optical Spectroscopy Expanding Use-Case into Broad Gas/Vapor Identification IDENTIFY FIELDED XIR DEVICES ODORS OF CONCERN 5,500 100+ INDUSTRIAL FIRES CARCINOGEN Toxics & VOCs late 2022 launch MONITORING Suite of Complementary Products for Solid, Liquid, & Gas/Vapor Analysis Thre
Slide 7: Expansion of 908's Forensics Toolkit
Expansion of 908’s Forensics Toolkit Highly complementary products to expand analyte capability ‘TRACE’ DETECT & ID ‘BULK’ IDENTIFICATION 100’s of Analytes + Classify 1000’s 22,000+ Analytes The Toxic Invisible – less than a single fentanyl crystal (nanograms) + The Everything Visible – minute piles
Slide 8: Expansion of 908's Forensics Toolkit
Expansion of 908’s Forensics Toolkit Consolidates market-leading handheld tech in under penetrated forensics TAM Exceptional coverage 100’s of trace analytes, 1000’s of gases, 20,000+ bulk compounds Comprehensive toolkit Detection to ID, from air, and aerosols, to surfaces, piles, and puddles One to
Slide 9: Our Expanded Product Portfolio & Device base
Our Expanded Product Portfolio & Device base Combined Device Base Larger device base of common account types 3,600+ provides leverage of decision makers, KOLs Combined Units Sold and support & service infrastructure +700 18,000+ Units Combined Trained Users 3,600+ Units Combined 4 Combined Handheld
Slide 10: Scale Growth Leverage
1 Direct Plug-in to 908 Sales Team Scale High overlap of customer and call points, providing leverage of decision makers, KOLs, and immediate 908 sales team leverage. Growth 2 Overlapping Customer Base & Call-Point Complementary technologies; different pieces of the same workflow. Massive Leverage s
Slide 11: Accelerating Top-Line Growth & Margin Expansion
Accelerating Top-Line Growth Overlapping customer base and call points, & Margin Expansion supports improved scale and leverage of Compelling Financial Profile sales and marketing efforts Projected to boost revenue, margin, and operating income QC/ PAT Fed / Gov Civilian International 30% FY23* Unta
Slide 12: Growth & Scale
Growth & Scale Revenue ($M) 70 2024 Guidance $63-65M Compelling combined top-line 65 60 Handheld Desktops Contract 25 - 29% (YoY) RW 55 $50M 50 45 40 35 30 25 20 15 10 5 0 2020 2021 2022 2023 2024 Expected FY Reported Revenue (as of 4/30/24) 12
Slide 13: Strong Financial Synergies
Strong Financial Synergies Higher Growth, Improved Margins, Faster Path to Profitability Adds expected $11M in 2024 revenue for 8 mo. ownership Gross margins above 908 Devices corporate average + Brings positive cash-flow business into 908 Devices Identified >$5M in forecasted annual cost synergies
Slide 14: Laying Foundation for Profitable Long-Term Growth
Laying Foundation for Profitable Long-Term Growth Leading ‘lab-grade’ analytical platforms to power point-of- need chemical analysis Consolidated portfolio of handheld and desktop devices addresses $6B+ forensics, research, QA/QC, and bioprocessing TAM Accelerated path to $100M+ in annualized revenu
Slide 15: Analysis at the speed of life
Analysis at the speed of life 7<~ 908devices