Tenon Medical, Inc. Reports Fourth Quarter and Full Year 2022 Financial Results
Tenon Medical (NASDAQ:TNON) reported a transformative year, concluding with a 423% revenue increase in Q4 2022, totaling $277,000, and a full-year revenue of $691,000, up 332%. Surgical procedures using the Catamaran System surged 386% in Q4 and 361% for the year. Despite these gains, the company reported a gross loss of $(207,000) in Q4 and $(641,000) for 2022. Operating losses jumped to $7.9 million in Q4 and $18.7 million for the year, impacted by a $3.6 million charge related to the termination of a national distribution agreement. Cash reserves stood at $8.6 million as of year-end, supporting ongoing operations.
- Fourth quarter revenue increased 423% year-over-year to $277,000.
- Full year 2022 revenue rose 332% to $691,000.
- Surgical procedures using the Catamaran System increased 386% for Q4.
- Expanded patent portfolio with one US patent and 13 applications filed.
- Secured reimbursement for SI joint fusion procedures, with a 26% increase in fees.
- Gross loss of $(207,000) in Q4 compared to a profit of $36,000 a year ago.
- Operating losses totaled $7.9 million in Q4, up from $2.6 million in Q4 2021.
- Net loss increased to $18.9 million for the full year, from $7.0 million in 2021.
~ Company Concludes First Year as Public Company, Surgical Procedures Increase
~ Fourth Quarter 2022 Revenue Increased
~ Full Year 2022 Revenue Increased
LOS GATOS, CA / ACCESSWIRE / March 9, 2023 / Tenon Medical, Inc. (NASDAQ:TNON) ("Tenon Medical" or the "Company"), a company that has transformative care for patients suffering with certain sacroiliac disorders, today reported financial results for the fourth quarter and full year ended December 31, 2022.
Fourth Quarter & Full Year 2022 Highlights
- Revenue of
$277,000 in the fourth quarter of 2022, a423% increase over the prior year quarter, and up33% on a sequential basis compared to the third quarter 2022 - Revenue of
$691,000 in 2022, a332% increase from the full year 2021 - During the year 1 US patent and 1 foreign patent were issued and the company submitted 13 US patent applications, significantly expanding our SI joint fixation intellectual property portfolio
- 78 physicians have completed a Catamaran workshop as of December 31, 2022
- National launch of the Catamaran™ SI Joint Fusion System ("Catamaran") at the North American Spine Society (NASS) meeting (Chicago, IL), October 12-15, 2022, with a technical exhibit, interactive surgeon training sessions, and outcomes from a single center experience with Catamaran presented at an Innovative Technology Session
- Successful treatment of first patient in the strategic post market clinical study with Catamaran™ SI Joint Fusion System at Zion Surgery Center
- Modified our National Distribution arrangement allowing accelerated commercial scale with development of Tenon Medical commercial infrastructure and sales management to support top line growth
- CMS final rule effective January 1, 2023 for code 27279 increases 2023 Medicare facility fee by approximately
26% for SI joint fusion procedures performed in ASCs and33% for these procedures done in hospital outpatient settings - Closed
$16 Million Initial Public Offering ("IPO") on April 29, 2022 and commenced trading on the Nasdaq Capital Markets
"2022 was a transformative year for Tenon, with multiple milestones along our commercialization path for both our Company and the Catamaran System," said Steve Foster, CEO and President of Tenon Medical. "We began the year with our
"In conjunction with the full launch, during the fourth quarter we significantly ramped our commercialization efforts including developing commercial infrastructure and building our sales management team to support top line growth. These efforts continue as we focus on targeting physicians who have been trained on SI procedures or have significant experience with SI surgical technologies. Utilizing area sales managers, clinical specialists, independent distributors and aggressive local workshop program, our go-to-market strategy is taking shape and gaining traction.
"Today, Catamaran is FDA cleared, reimbursement secured, and commercially launched to a large market with accelerating recognition in the physician community. As of December 31, 2022, we've hosted 78 physicians in Catamaran workshops. Additionally, we had 2 patents issued and filed a total of 13 patent applications, which represents our continued commitment to delivering distinct solutions to our physician customers. Looking ahead on our commercialization pathway, and the addition of our synthetic training model option to the traditional cadaveric lab, we anticipate further acceleration of our outreach and building momentum for Tenon.
"Specific to Clinical Research, during the fourth quarter we received IRB approval for two strategic post market studies that will assess patient pain scores, fusion as well as other patient reported outcomes out to 12 and 24 months. This investment allows our designated Catamaran study centers to begin recruiting and enrolling patients into the respective studies and represents our continued commitment in validating and differentiating patient outcomes and radiographic assessment with the Catamaran System. In November we were excited to announce the successful treatment of our first enrolled patient at Zion Surgery Center. We look forward to our additional study centers and investigators beginning their enrollment, and we continue the process of identifying and qualifying additional clinical sites.
"Looking ahead on our commercialization pathway, we believe we are well-positioned to create long-term value for our shareholders. With the national launch of Catamaran and ongoing positive feedback, we are very optimistic for the commercialization of this unique technology. Ongoing post market clinical studies represent our continued commitment to validating and differentiating patient outcomes and radiographic assessment with the Catamaran System. We are now focused on building our sales and outreach through education and workshop events, and delivering clinical research that reinforces the promise of this distinct technology," concluded Foster.
Fourth Quarter and Full Year 2022 Financial Results
Revenue was
Gross loss in the three months ended December 31, 2022 was
Operating losses totaled
Net loss was
As of December 31, 2022, cash and cash equivalents and short-term investments totaled
Q4 2022 Earnings Conference Call
Management will host an investor conference call at 4:30 p.m. ET (1:30 PT) today, Thursday, March 9, 2023, to discuss Tenon's fourth quarter and full year 2022 financial results, provide corporate update, and conclude with a Q&A session. To participate, please use the following information:
| Date: | Thursday, March 9, 2023 |
| Time: | 4:30 p.m. Eastern time |
| Dial-in: | 1-877-407-0792 |
| International Dial-in: | 1-201-689-8263 |
| Webcast: | TNON Conference Call |
About Tenon Medical, Inc.
Tenon Medical, Inc., a medical device company formed in 2012, has developed The Catamaran™ SI Joint Fusion System that offers a novel, less invasive Inferior-Posterior approach to the SI joint using a single, robust titanium implant. The system features the Catamaran™ Fixation Device which passes through both the axial and sagittal planes of the ilium and sacrum, transfixing the SI joint along its longitudinal axis. With an entry that mimics SI joint injection, the surgical approach is direct to the joint and inferior to the wide and variable dorsal recess. The angle and trajectory of the Inferior-Posterior approach is designed to provide a pathway away from critical neural and vascular structures and into the strongest cortical bone. Tenon is preparing a national launch of this system to address the greatly underserved market opportunity that exists in this space. For more information, please visit www.tenonmed.com.
The Tenon Medical logo and Tenon Medical, are registered trademarks of Tenon Medical, Inc. Catamaran is a trademark of Tenon Medical, Inc.
Safe Harbor
This press release contains "forward-looking statements," which are statements related to events, results, activities or developments that Tenon expects, believes or anticipates will or may occur in the future. Forward-looking often contain words such as "intends," "estimates," "anticipates," "hopes," "projects," "plans," "expects," "seek," "believes," "see," "should," "will," "would," "target," and similar expressions and the negative versions thereof. Such statements are based on Tenon's experience and perception of current conditions, trends, expected future developments and other factors it believes are appropriate under the circumstances, and speak only as of the date made. Forward-looking statements are inherently uncertain and actual results may differ materially from assumptions, estimates or expectations reflected or contained in the forward-looking statements as a result of various factors. For details on the uncertainties that may cause our actual results to be materially different than those expressed in our forward-looking statements, please review our Registration Statement on Form S-1 on file with the Securities and Exchange Commission at www.sec.gov, particularly the information contained in the section entitled "Risk Factors". We undertake no obligation to publicly update or revise any forward-looking statements to reflect new information or future events or otherwise unless required by law.
Investor Contact
Shannon Devine
MZ North America
203-741-8811
tenon@mzgroup.us
Tenon Medical, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited)
(In thousands, except per share data)
| Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
Revenue | $ | 277 | $ | 53 | $ | 691 | $ | 160 | ||||||||
Cost of sales | 484 | 17 | 1,332 | 55 | ||||||||||||
Gross (Loss) Profit | (207 | ) | 36 | (641 | ) | 105 | ||||||||||
Operating Expenses | ||||||||||||||||
Research and development | 812 | 793 | 2,828 | 1,718 | ||||||||||||
Sales and marketing | 4,969 | 668 | 7,833 | 2,141 | ||||||||||||
General and administrative | 1,940 | 1,137 | 7,423 | 2,707 | ||||||||||||
Total Operating Expenses | 7,721 | 2,598 | 18,084 | 6,566 | ||||||||||||
Loss from Operations | (7,928 | ) | (2,562 | ) | (18,725 | ) | (6,461 | ) | ||||||||
Other Income (Expense) | ||||||||||||||||
Gain on investments | 72 | 1 | 180 | 2 | ||||||||||||
Interest expense | 8 | (281 | ) | (354 | ) | (621 | ) | |||||||||
Other income (expense) | (57 | ) | - | (18 | ) | (1 | ) | |||||||||
Total Other Income (Expense), net | 23 | (280 | ) | (192 | ) | (620 | ) | |||||||||
Net Loss | (7,905 | ) | (2,842 | ) | (18,917 | ) | (7,081 | ) | ||||||||
Loss attributable to non-controlling interest | - | -) | - | (33 | ) | |||||||||||
Net Loss Attributable to Tenon Medical, Inc. | $ | (7,905 | ) | $ | (2,842 | ) | $ | (18,917 | ) | $ | (7,048 | ) | ||||
Net Loss Attributable to Tenon Medical, Inc. Per Share of Common Stock | ||||||||||||||||
Basic and diluted | $ | (0.70 | ) | $ | (2.91 | ) | $ | (2.36 | ) | $ | (7.81 | ) | ||||
Weighted-Average Shares of Common Stock Outstanding | ||||||||||||||||
Basic and diluted | 11,237 | 977 | 8,008 | 903 | ||||||||||||
Consolidated Statements of Comprehensive Loss: | ||||||||||||||||
Net loss | $ | (7,905 | ) | $ | (2,842 | ) | $ | (18,917 | ) | $ | (7,081 | ) | ||||
Unrealized loss on investments | 21 | - | (16 | ) | - | |||||||||||
Foreign currency translation adjustment | 47 | 1 | 7 | 1 | ||||||||||||
Total Comprehensive Loss | (7,837 | ) | (2,841 | ) | (18,926 | ) | (7,080 | ) | ||||||||
Comprehensive loss attributable to non-controlling interest | - | - | - | (33 | ) | |||||||||||
Total comprehensive loss attributable to Tenon Medical, Inc. | $ | (7,837 | ) | $ | (2,841 | ) | $ | (18,926 | ) | $ | (7,047 | ) | ||||
Tenon Medical, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands, except share data)
| December 31, | December31, | |||||||
| 2022 | 2021 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 2,129 | $ | 2,917 | ||||
Short-term investments | 6,441 | 4,404 | ||||||
Accounts receivable | 228 | 76 | ||||||
Inventory | 415 | 188 | ||||||
Prepaid expenses | 134 | 87 | ||||||
Total current assets | 9,347 | 7,672 | ||||||
Fixed assets, net | 793 | 101 | ||||||
Deposits | 51 | 41 | ||||||
Operating lease right-of-use asset | 873 | 1,084 | ||||||
Deferred offering costs | 25 | 374 | ||||||
TOTAL ASSETS | $ | 11,089 | $ | 9,272 | ||||
| Liabilities, Convertible Preferred Stock, and Stockholders' EQUITY (DEFICIT) | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 550 | $ | 478 | ||||
Accrued expenses | 717 | 1,074 | ||||||
Current portion of accrued commissions | 1,035 | 14 | ||||||
Current portion of operating lease liability | 228 | 202 | ||||||
Convertible notes payable and accrued interest, net of debt discount of | - | 12,857 | ||||||
Convertible notes payable and accrued interest due to related parties, net of debt discount of | - | 649 | ||||||
Total current liabilities | 2,530 | 15,274 | ||||||
Accrued commissions, net of current portion | 1,624 | - | ||||||
Operating lease liability, net of current portion | 683 | 911 | ||||||
Total liabilities | 4,837 | 16,185 | ||||||
Commitments and contingencies (Notes 6 and 9) | ||||||||
Convertible preferred stock: | ||||||||
Series A convertible preferred stock, | - | 12,367 | ||||||
Series B convertible preferred stock, | - | 1,272 | ||||||
Stockholders' equity (deficit): | ||||||||
Common stock, | 11 | 1 | ||||||
Additional paid-in capital | 45,833 | 113 | ||||||
Accumulated deficit | (39,492 | ) | (20,575 | ) | ||||
Accumulated other comprehensive income (loss) | (100 | ) | (91 | ) | ||||
Total stockholders' equity (deficit) | 6,252 | (20,552 | ) | |||||
TOTAL LIABILITIES, CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS' EQUITY (DEFICIT) | $ | 11,089 | $ | 9,272 | ||||
SOURCE: Tenon Medical, Inc.
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