While we expect these headwinds to continue in the near term, particularly in the first half of 2024, we are encouraged by three indicators. First, we saw an uptick in fourth quarter bookings, resulting in our best desktop bookings quarter since Q4 2021, helped in part by contributions from our new products, MAVEN and MAVERICK. A second indicator is that we generated 25% more opportunities in the second half of 2023 for our desktop devices compared to the first half of the year, helped in part by our new product launches. And third, we generated 50% more leads in the second half of the year than over the first half, helping us fill the top of our funnel. We saw strong demand for our handheld devices throughout 2023 and expect demand will continue this year as applications for chemical detection and identification at the point of need continued to gain traction in the US and internationally.

We ended the year with 16 pilot accounts which have potential for more than 100 unit placements and 22 enterprise accounts which have potential for more than 1,000 unit placements, an increase of 25% year-over-year. Key drivers of handheld adoption continue to be significant level of ongoing geopolitical risk with conflicts in Europe and the Middle East, along with rising tensions in other areas such as in Southeast Asia with Taiwan. The ever-expanding fentanyl crisis is another key driver, including its unfortunate attempted use to disrupt elections with fentanyl being sent in the mail to election centers and officials. Between 2020, the year of our IPO, and 2023, revenues from our handheld portfolio have grown at a 29% CAGR, serving as a consistent contributor to top line growth.

We finished 2023 with zero debt and a healthy cash balance of over $145 million. We remain laser focused on balancing prudent cash management with necessary spending to support our top line growth objectives. As mentioned during our call a year ago, we set a target to ensure that our 2023 operating expense growth was paced with our revenue growth, which I'm proud to say we achieved. Entering 2024, we intend to remain good stewards of our cash as we continue our push into underserved handheld and desktop market opportunities. Now I'd like to provide a bit more detail on the progress we have made across our three focus areas during the past year. Starting with our first objective, penetrate and radiate across key accounts. Our focus is to penetrate new accounts to create a foothold and then radiate across these accounts to drive broader enterprise adoption.

For our handhelds, we steadily expanded our international presence and our MX908 device is now being deployed in 56 countries, up from 45 countries at the end of 2022. In 2023, 25% of our MX908 device sales were from outside North America, compared to 20% in 2022. We anticipate further growth in our international opportunities. In the fourth quarter of 2023 we were awarded a contract from DrugDetect EU, an innovative procurement project co-funded by the European Union for drug inspection in correctional institutions and prisons. The project requires detection solutions be available 24/7 to prevent delays to internal processes and it also mandates that solutions must be non-invasive and compliant with European data privacy laws. Our MX908 proudly meets these requirements.

Our initial contract includes multiple devices for correctional facilities in Greece and Belgium. After personnel were trained on a unit at the Ghent prison, the Belgian Minister of Justice publicly noted that they now can use our device continuously to combat drug use in prison, removing the need to call in a police dog. We look forward to partnering with the Belgian Ministry as they deploy our MX908, as well as supporting the DrugDetect project more broadly across the EU. Closer to home, the ongoing fentanyl crisis shows no signs of abating. The US Drug Enforcement Administration, or DEA, seized more than 77 million fentanyl-laced fake prescription pills in 2023, up over 50% from 2021. DEA laboratory testing also showed that seven out of 10 pills tested contained a potential deadly dose of fentanyl, an increase from six out of 10 pills in 2022 and four out of 10 pills in 2021.

To meet this overwhelming need, we continue to partner with state and local law enforcement agencies as they grapple with identifying and removing lethal counterfeit pharmaceuticals, often missed with fentanyl, from our communities. In August of 2023, we announced a pilot program with several Tennessee law enforcement agencies and drug task forces to enhance the speed and efficiency of the state's drug identification process. The program's primary objective is to decrease the quantity of illicit drug samples sent to central labs for testing, similar to our successful multi-year program in Ohio, which has resulted in significant reduction in evidence testing backlogs. The Tennessee pilot program began with an initial seed of eight MX908 devices, and we recently received an order for three additional devices in January of 2024, with more being planned this year.

During 2023, we also made significant progress with a multi-year project for the United States Department of Defense. In conjunction with our partner of the project, Smiths Detection, we were selected to provide initial production of 122 portable aerosol and vapor chemical agent detectors, otherwise known as AVCAD. Our high-pressure mass spectrometry technology enables these next generation chemical detector systems which will support worldwide missions for the U.S. Military. This is also a precursor to a potential full rate production award in 2025 that has the potential of providing over $10 million of revenue per year. Turning to our desktops, we are excited about our progress in cell therapies as tools that provide real-time analytics are pivotal in helping manufacturers develop more robust and reproducible processes.

In November we announced a collaboration with Terumo Blood and Cell Technologies to integrate our MAVEN device with Turumo's Quantum Flex expansion system for real-time monitoring and control of glucose and lactate without the risk of manual sampling and with less labor. With MAVEN, lactate concentrations, which are highly correlated indicator of cell viability, can be continuously monitored to inform feeding strategies and when to harvest, both critical as they can vary patient by patient. Recently, we were thrilled to announce another collaboration with a leading cell therapy developer and manufacturer, Cellares, to integrate inline monitoring of key cell culture parameters. We are partnering with Cellares to adopt our MAVERICK in-line optical analyzer to be compatible with Cellares' cell shuttle system, which is a fully integrated, scalable cell therapy manufacturing platform.

The benefit of real-time monitoring allows for immediate corrective action, while maintaining sample integrity and reducing contamination risk. This collaboration, along with Terumo BCT, demonstrates the complementary nature of our new and existing capabilities when used alongside other cell therapy biomanufacturing enablers. According to recently released data from the American Society of Gene and Cell Therapy, the number of Phase 3 trials increased for the first time in a year. As 2024 is shaping up to be a pivotal year, particularly for CAR-T therapies, we are proud to partner with Terumo BCT and Cellares to further advance the efficiency, safety, and cost effectiveness of these life-saving cell therapies. Turning to our second objective, advancing and broadening our product portfolio.

Our product strategy is to develop devices that are simple to use and that provide customers with robust answers at the point of need. We continue to enhance the value of our flagship handheld device with software and hardware accessories that provide our customers with additional capabilities. Last year we introduced the MX908 beacon for remote area monitoring of toxic aerosol and vapor hazards. Beacon leverages our MX908 device and aero module and adds a cloud-based solution that enables first responders to gather intelligence remotely and continuously, while ensuring public safety at large events and a key infrastructure. In November, our MX908 beacon was awarded a Gold Astors Homeland Security Award from the American Security Today for best CBR&E detection solution.

In 2023, we significantly advanced and broadened our bioprocess portfolio with the launch of two devices. In January, we launched MAVEN, our first online device that connects directly to the bioreactor, providing real-time monitoring and control of glucose and lactate in cell culture and fermentation processes. With its novel aseptic sampling probe, MAVEN enables cell-free, sterile, and safe sampling with no volume loss or prep required. Later in September, we launched MAVERICK, the first turnkey device that utilizes Raman spectroscopy for real-time in-line monitoring and control of multiple bioprocess parameters, with no modeling or development required. As an in-line device, MAVERICK is directly connected to the bioreactor, enabling scientists to take immediate corrective actions that improve product quality and process efficiency.

We were honored that the analytical scientists named MAVERICK one of the top 15 innovations in 2023. MAVEN, MAVERICK, and our REBEL cell culture analyzer enable process scientists to monitor and control critical process parameters and our ZipChip interface enables scientists to measure critical quality attributes. Taken together, we now have a complementary suite of PAT desktop devices which we plan to use to deepen our engagement with BioPharma customers this year and position us advantageously to seize opportunities as the current macro headwinds subside. And finally, turning to our third objective, laying an omics foundation. There's a clear need for accelerating mass spec-based workflows to address proteomic and metabolomics opportunities.

We believe our ZipChip device, along with our prototype microfluidic chips, can ultimately meet this need for speed. During the fourth quarter there were several peer-reviewed articles published in scientific journals that noted the speed of our ZipChip device for high resolution separations. And here are a highlight from two articles. In a publication in the Journal of Analytical and Bioanalytical Chemistry, scientists from Ireland's National Institute for Bioprocessing Research and Training, or NIBRT, highlighted the use of ZipChip for rapid characterization of AAV capsid proteins, with runs performed in as little as five minutes. Researchers concluded that ZipChip's rapid characterization illustrates its strength in monitoring product quality during AAV production.

In a publication in the Journal of American Society for Mass Spectrometry, scientists from Amgen employed our ZipChip technology to enable rapid intact mass analysis of oligonucleotide single strands. Baseline separation of equal length oligos was achieved in less than four minutes compared to run times of 15 minutes with LC/MS analysis. In addition, with ZipChip, no method development nor ion pairing reagents are required. Overall, I'm pleased with the progress we made on our stated objectives in 2023, including the launch of two devices in the process analytical technology space and the continued penetration of our handheld and enterprise accounts. With that, I'll now turn the call over to Joe for more details on our financials.

Joseph Griffith: Thanks, Kevin. Starting with our fourth quarter results, revenue for the fourth quarter 2023 was $14.4 million, up 23% from $11.6 million in the prior year period, primarily driven by an increase in handheld device revenue. Handheld revenue was $11.1 million for the fourth quarter 2023, up 57% from $7.1 million for the fourth quarter 2022, primarily related to an increase in device sales, with 116 MX908 handheld device shipments in the fourth quarter. Desktop revenue from our products serving the life science, instrumentation, and bioprocessing markets for the fourth quarter 2023 was $3.2 million, down 2% from $3.3 million in the prior year period. This included five ZipChip interfaces, three REBEL, 10 MAVEN, and five MAVERICK device shipments.

As a reminder, starting next quarter we will no longer break out placements by device. We'll focus more on overall revenue and combine desktop placements as the key metrics for growth for our broadening desktop portfolio. We exited 2023 with a cumulative handheld and desktop install base of 2,853 devices, up from 2,385 exiting 2022. Recurring revenue, which consists of consumables, accessories, and service revenue, represented a third of total revenue in the quarter, and was $4.7 million, a $1.2 million decrease over the prior year period. This decrease was driven by a decline in handheld accessory and consumable revenue, offset in part by growth in service revenue. As a reminder in the prior year period, we had $2.2 million in recurring revenue from a large enterprise order with the U.S. Army.

Gross profit was $7.3 million for the fourth quarter of 2023, compared to $5.9 million for the prior year period. Gross margin was 51% for the fourth quarter 2023, consistent with the prior year period. For the fourth quarter of 2023, product and service gross margin improved to 51%, compared to 46% for the prior year period, which helped to offset $1.2 million of favorable gross margin from contract revenue in the prior year period. Total operating expenses for the fourth quarter of 2023 were $17 million, compared to $16.3 million in the prior year period. This increase was driven by stock-based compensation and an increase in commission expenses related to handheld revenues, offset in part by a reduction in G&A expenses. Net loss for the fourth quarter of 2023 was $7.4 million compared to $9.8 million in the prior year period.

Now moving on to our full year results. Total revenue for the full year 2023 was $50.2 million, up 7% from $46.9 million in 2022. This was primarily driven by an $8.3 million increase in handheld revenues, offset by a $3 million decrease in desktop revenues and a $2 million decrease in contract revenues. Total 2023 product and service revenues were $49.9 million, up 12% from $44.5 million in 2022. Handheld revenue was approximately $37.9 million for the full year 2023 compared to $29.5 million in the prior year period, representing growth of 28% year-over-year, primarily driven by an increase in device sales. Desktop revenue was $12 million for the full year 2023, a 20% decline compared to $14.9 million in the prior year period, as customers remain cautious in their capital expenditures.

Recurring revenue for the full year was a third of product and service revenue and was $16.5 million compared to $15.7 million in the prior year period, representing growth of 5% year-over-year. Recurring revenue growth was driven primarily by strong service revenue, which grew to 38% year-over-year, offset in part by $3.5 million in recurring revenue from a large enterprise order with the U.S. Army in the prior year period. Looking ahead, we expect recurring revenue for our product portfolio to continue to be around a third of product and service revenue for the full year 2024. Gross profit for the full year 2023 was $25.3 million as compared to $26 million in the prior year period. Gross margin was 50% for the full year 2023 as compared to 56% for the full year 2022.

Product and service growth margin was 50% for the full year 2023, as compared to 54% for the prior year period. The decrease in product and service growth margin was driven primarily by an increase in spending to reach scale within our operations and service functions, a temporary increase in the use of third-party contractors to train customers on our MX908, and a $0.6 million increase in non-cash stock-based compensation and intangible amortization. As we look ahead to 2024, we expect our gross margins to continue to be in the low 50s due to the impact of pricing, higher material costs, and overall product, service, and channel mix. Operating expenses for the full year 2023 were $68.1 million as compared to $61.4 million in the prior year period.

This increase was driven primarily by a $3.3 million increase in salaries and related costs and a $2.3 million increase in stock-based compensation, partially offset by a reduction in G&A expenses. Net loss for the full year 2023 was $36.4 million, compared to $33.6 million in the prior year period. We ended 2023 with $145.7 million in cash, cash equivalents and marketable securities with no debt outstanding. In 2023, we consumed $43 million, which includes $15 million used to pay off debt and $1 million used to pay contingent consideration for our prior acquisition. We enter 2024 with a strong cash position and zero debt, which we believe provides a multi-year runway to support our long-term growth objectives. Looking ahead in 2024, we expect revenue to be in the range of $52 million to $54 million, representing growth of 4% to 8% over a full year 2023.

This range presents a balanced view of several factors. First, while Q4 had some indicators of positivity for the life science, instrumentation, and bioprocessing markets, we're assuming the pressures we saw throughout the year will persist through at least the first half of 2024. Second, despite these headwinds, we anticipate a step up in total desktop device placements during 2024, with rising contributions from newer products throughout the year as they progress through customer evaluations. And finally, we expect continued strength in our handheld devices, which serve the forensics market to bolster our overall growth as we continue to navigate a challenging macro environment for our desktops. As a result of these factors, taken together with delay in passing fiscal year 2024 US Federal budget, we expect revenue for 2024 to be slightly more weighted to the second half compared to prior years, with an expected split of roughly 40% in the first half and 60% in the second half.

Each year, we typically see a step down from Q4 to Q1 due to the seasonality of year-end budget cycles. This year we expect that to be even more pronounced, largely due to the delay in the passing of the federal budget and the strong performance of handhelds in the fourth quarter of 2023. At this point, I would like to turn the call back to Kevin.

Kevin Knopp: Thanks, Joe. We view 2024 as a transitional year for 908 Devices. We expect solid growth from our product serving the forensics market and overall revenue growth to accelerate throughout the year as the headwinds in the life science instrumentation and bioprocessing market begin to subside. With this anticipated improvement, we are well positioned to capture the opportunity in this market with an expanded product portfolio. We are confident that with an improved macro environment, we'll be able to return to robust double-digit growth in 2025, which will solidify a path to profitability with our existing cash reserves. To get there, we are laser focused on three key areas for 2024. First is market expansion. Our focus here will be on broadening our market presence by actively engaging with new key accounts and developing strategic partnerships, while also expanding our reach across global enterprise accounts.

In 2023, we saw an increase in the pipeline of opportunities for our handheld devices with a 25% increase in enterprise potential. Given the strong growth of our handhelds in forensics, we will invest in areas where we believe we can drive higher growth, both domestically and internationally, and explore ways to further leverage our sales and marketing channel. Additionally, planned increases in NATO defense spending and spending in the Middle East are expected to have a positive impact. For our desktop products, we are working to introduce MAVEN and MAVERICK into advanced therapeutic modalities, establishing a presence with design wins, and strategic relationships with innovators in the cell therapy space. A second area of focus will be to leverage our expanded product portfolios to maximize opportunities and strengthen customer engagements.

Our PAT portfolio now includes at-line, online, and in-line analysis capabilities, providing real-time analytics for our customers. This has led us to being increasingly viewed as partners in the cell culture analysis for biologics and cell and gene therapy applications, enabling broader conversations and ultimately larger potential. With all the necessary desktop products in place to address near-term opportunities, we are being selective with our R&D investments, focusing on incremental rather than next generation advancements in 2024. And finally, we will execute a framework for sustained growth with the path to profitability. Our year-over-year operating expenses, excluding stock compensation are projected to remain flat in 2024, with R&D spend tempering now that major product launches of 2023 are complete.

We are committed to reaching profitability with our existing cash reserves, and this path will be solidified as we return to robust double-digit growth rates in 2025. I look forward to updating you on our progress across each of these initiatives throughout the year. With that, we'll now open it up to questions.

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