Tenon Medical Reports Third Quarter 2023 Financial Results
- Revenue increased by 354% year-over-year
- Gross profit margin improved to 57%
- 329% increase in surgical procedures using the Catamaran System
- Secured a $10 million equity line of credit facility
- Passed FDA's Level 2 Quality System Inspection with no observations, objectionable conditions, or Form 483 issued
- None.
~ Revenue Increased
~ Gross Profit Margin of
~ Surgical Procedures Increased
~ Concluded the Quarter with the Surgical Launch of the JIB Instrument Kit for the Catamaran® SI Joint Fusion System ~
LOS GATOS, CA / ACCESSWIRE / November 14, 2023 / Tenon Medical, Inc. (NASDAQ:TNON) ("Tenon Medical" or the "Company"), a company transforming care for patients suffering with certain sacroiliac disorders, today reported financial results for the third quarter ended September 30, 2023.
Third Quarter 2023 and Subsequent Highlights
- Revenue of
$944,000 , a354% increase over the prior year quarter, and up27% on a sequential basis compared to Q2 2023. - Gross profit increased to
$535,000 as compared to a gross loss of ($94,000) in the prior year period and$194,000 sequentially. - Gross profit margin of
57% , a significant improvement sequentially compared to26% in Q2 2023. 329% increase in the number of surgical procedures in which the Catamaran System was used compared to the prior year.- Secured a
$10 million equity line of credit facility with Lincoln Park Capital Fund to strengthen balance sheet position and support strategic growth investments. - Successfully completed initial patients' treatment and expanded physician use with the JIB Instrument Kit for the Catamaran® SI Joint Fusion System.
- In early November, Tenon announced the Company has passed the FDA's Level 2 Quality System Inspection of its facilities with no observations, no objectionable conditions and no Form 483 issued.
"November marks a full year from our national commercial launch of The Catamaran System, and we remain encouraged by the increased adoption and utilization achieved during the third quarter as we experienced a significant
"We continued our carefully targeted physician workshop activities, hosting 28 physicians in Catamaran focused sessions during the quarter. Early use of our alpha JIB Instrument Kit for the Catamaran® SI Joint Fusion System by two expert physicians in the ortho and neuro spine fields has shown the kit delivers on its promise of reduced incision length, improved stability, and efficient graft handling. Year to date, we have generated revenue of
"Looking ahead, we expect strong revenue growth into 2024 as the number of surgical procedures builds from the efforts of our sales and marketing team, which have yielded positive returns with a firm focus on outreach through education and workshop events. We reinforce our commitment to ongoing post market clinical studies and validating patient outcomes and radiographic assessment. Over the long-term, our goal is to further expand our product portfolio to address SI Revision, adjunct to fusion and navigation procedures. We look forward to providing additional updates as we build our sales infrastructure and execute on our growth objectives to improve the quality of life of patients suffering from SI joint pain, and bring long-term value for our shareholders," concluded Foster.
Third Quarter 2023 Financial Results
Revenue was
Gross profit in the third quarter of 2023, was
Operating losses totaled
Net loss was
As of September 30, 2023, cash and cash equivalents and short-term investments totaled
Q3 2023 Earnings Conference Call
Management will host an investor conference call at 4:30 p.m. ET (1:30 PT) today, Tuesday, November 14, 2023, to discuss Tenon's third quarter 2023 financial results, provide corporate update, and conclude with Q&A with the Company's covering analysts. To participate, please use the following information:
| Date: | Tuesday, November 14, 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 |
Please dial in at least 10 minutes before the start of the call to ensure timely participation.
An audio playback of the call will be available through November 28, 2023, on Tenon's Investor Relations website at http://ir.tenonmed.com/ or via telephone replay by dialing 1-844-512-2921 (USA) or 1-412-317-6671 (International). The access code will be 13741950.
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 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, stabilizing and transfixing the SI joint along its longitudinal axis. The angle and trajectory of the Catamaran surgical approach is also designed to provide a pathway away from critical neural and vascular structures and into the strongest cortical bone. Tenon is underway with 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 | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenue | $ | 944 | $ | 208 | $ | 2,120 | $ | 414 | ||||||||
Cost of sales | 409 | 302 | 1,438 | 848 | ||||||||||||
Gross (Loss) Profit | 535 | (94 | ) | 682 | (434 | ) | ||||||||||
Operating Expenses | ||||||||||||||||
Research and development | 737 | 797 | 2,472 | 2,016 | ||||||||||||
Sales and marketing | 1,527 | 645 | 5,436 | 2,864 | ||||||||||||
General and administrative | 1,649 | 1,726 | 5,360 | 5,483 | ||||||||||||
Total Operating Expenses | 3,913 | 3,168 | 13,268 | 10,363 | ||||||||||||
Loss from Operations | (3,378 | ) | (3,262 | ) | (12,586 | ) | (10,797 | ) | ||||||||
Other Income (Expense) | ||||||||||||||||
Gain on investments | 50 | 72 | 143 | 108 | ||||||||||||
Interest expense | (4 | ) | - | (4 | ) | (362 | ) | |||||||||
Other income (expense), net | - | 19 | - | 39 | ||||||||||||
Total Other Income (Expense), net | 46 | 91 | 139 | (215 | ) | |||||||||||
Net Loss | $ | (3,332 | ) | $ | (3,171 | ) | $ | (12,447 | ) | $ | (11,012 | ) | ||||
Net Loss Per Share of Common Stock | ||||||||||||||||
Basic and diluted | $ | (1.46 | ) | $ | (2.82 | ) | $ | (7.91 | ) | $ | (15.91 | ) | ||||
Weighted-Average Shares of Common Stock Outstanding | ||||||||||||||||
Basic and diluted | 2,276 | 1,124 | 1,573 | 692 | ||||||||||||
Consolidated Statements of Comprehensive Loss: | ||||||||||||||||
Net loss | $ | (3,332 | ) | $ | (3,171 | ) | $ | (12,447 | ) | $ | (11,012 | ) | ||||
Unrealized gain (loss) on investments | - | (10 | ) | 16 | (37 | ) | ||||||||||
Foreign currency translation adjustment | (30 | ) | (19 | ) | (18 | ) | (40 | ) | ||||||||
Total comprehensive loss | $ | (3,362 | ) | $ | (3,200 | ) | $ | (12,449 | ) | $ | (11,089 | ) | ||||
Tenon Medical, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands, except share data)
| September 30, | December 31, | |||||||
| 2023 | 2022 | |||||||
| (Unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 3,371 | $ | 2,129 | ||||
Short-term investments | - | 6,441 | ||||||
Accounts receivable | 773 | 228 | ||||||
Inventory | 474 | 415 | ||||||
Prepaid expenses | 345 | 134 | ||||||
Total current assets | 4,963 | 9,347 | ||||||
Fixed assets, net | 956 | 793 | ||||||
Deposits | 51 | 51 | ||||||
Operating lease right-of-use asset | 704 | 873 | ||||||
Deferred offering costs | 644 | 25 | ||||||
TOTAL ASSETS | $ | 7,318 | $ | 11,089 | ||||
Liabilities and Stockholders' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 763 | $ | 550 | ||||
Accrued expenses | 571 | 717 | ||||||
Current portion of accrued commissions | 1,502 | 1,035 | ||||||
Current portion of operating lease liability | 249 | 228 | ||||||
Total current liabilities | 3,085 | 2,530 | ||||||
Accrued commissions, net of current portion | 1,222 | 1,624 | ||||||
Operating lease liability, net of current portion | 494 | 683 | ||||||
Total liabilities | 4,801 | 4,837 | ||||||
Commitments and contingencies (Note 8) | ||||||||
Stockholders' equity: | ||||||||
Common stock, | 2 | 1 | ||||||
Additional paid-in capital | 54,556 | 45,843 | ||||||
Accumulated deficit | (51,939 | ) | (39,492 | ) | ||||
Accumulated other comprehensive loss | (102 | ) | (100 | ) | ||||
Total stockholders' equity | 2,517 | 6,252 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 7,318 | $ | 11,089 | ||||
SOURCE: Tenon Medical, Inc.
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https://www.accesswire.com/803276/tenon-medical-reports-third-quarter-2023-financial-results
FAQ
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