Tenon Medical, Inc. Reports Second Quarter 2022 Financial Results
08/11/2022 - 04:10 PM
~ Revenue increases 514% year-over-year ~ ~ 21 physician workshop events completed ~
LOS GATOS, CA/ ACCESSWIRE / August 11, 2022 / Tenon Medical, Inc . (NASDAQ:TNON) ("Tenon Medical" or the "Company"), a medical device company that has developed a proprietary, U.S. Food and Drug Administration ("FDA") cleared surgical implant system for sacroiliac joint ("SI Joint") fixation/fusion surgery, today reported financial results for the second quarter ended June 30, 2022.
Recent Highlights
Ongoing early commercialization of the Catamaran™ SI Joint Fusion System with a full launch to coincide with the North American Spine Society (NASS) meeting (Chicago, IL), October 12-15, 2022 As of August 11, 2022, the Company hosted 21 physician workshop events Revenue of $135,000 in the second quarter of 2022, a 514% increase from the same period in 2021, and an 90% increase on a sequential basis compared to the first quarter 2022 Closed $16 Million Initial Public Offering ("IPO") on April 29, 2022 Company's common stock commenced trading on the Nasdaq Capital Markets under the ticker symbol "TNON" "The second quarter of 2022 was highlighted by increasing momentum on our commercialization pathway, supported by the addition of new capital from our transition to a public company," commented Steve Foster, CEO and President of Tenon Medical. "We believe our Nasdaq listing will help elevate the Company's public profile, expand our shareholder base, improve liquidity and enhance shareholder value. The net proceeds to Tenon from the offering amounted to $13.8 million , bringing our June 30, 2022, cash and cash equivalents and short-term investments to $16.0 million .
"With our finalized commercial ready product and first cases successfully completed, we are now highly focused on introducing and educating physicians to our optimized surgical approach for SI Joint Fusion that has the potential to deliver significant and sustained reduction in SI Joint Pain. To date we have hosted a total of 21 physician workshop events, all of which have provided remarkably positive feedback in the clinician community. Looking ahead on our commercialization pathway and the addition of our synthetic training model option, we expect the number of these events to accelerate in the back half of 2022.
"There is significant unmet market opportunity for an authentic arthrodesis procedure and transformative implant system to treat SI-Joint dysfunction that very often causes lower back pain. We believe the Catamaran™ System will become a compelling alternative to deliver pain relief for patients suffering from SI Joint issues. We look forward to providing additional updates in the months to come as we ramp commercialization of the Catamaran™ System, building long-term value for our shareholders," concluded Foster.
Second Quarter 2022 Financial Results
Revenue was $135,000 in the second quarter of 2022, an increase of 514% , compared to $22,000 in the comparable year ago period. The increase was primarily due to a 433% increase in the number of surgical procedures in which the Catamaran™ System was used.
Gross loss in the three months ended June 30, 2022 was $(136,000) compared to a gross profit of $13,000 in the comparable year ago quarter, due to the increase in the operations overhead and spending. Gross margin percentage decreased from 59% to (101)%, driven by higher operations overhead, spending, and partially offset by higher revenue per procedure resulting from an amended and restated national distribution agreement.
Operating losses totaled $5.5 million for the second quarter of 2022, compared to a loss of $1.6 million in the second quarter 2021. The increase in operating expenses was a result of the creation of an infrastructure to support future growth and the ongoing transition to a public operating company.
Net loss was $5.5 million for the second quarter of 2022, compared a loss of $1.7 million in the same period of 2021 and expect to incur additional losses in the future.
As of June 30, 2022, cash and cash equivalents and short-term investments totaled $16.0 million . The Company believes existing cash and cash equivalents and short-term investments will enable Tenon Medical to fund hiring additional personnel, product development and sales and marketing activities including clinician training and clinical research activities.
Q2 2022 Earnings Conference Call
Management will host an investor conference call at 4:30 p.m. EDT (1:30 PDT) today, Thursday, August 11, 2022, to discuss Tenon's second quarter 2022 financial results, provide corporate update, and conclude with a Q&A session. To participate, please use the following information:
Date: Thursday, August 11, 2022 Time: 4:30 p.m. Eastern time Dial-in: 1-877-249-4692 International Dial-in: 1-212-271-4651 Conference Code: 22019821 Webcast: TNON Conference Call
About Tenon Medical, Inc.
Tenon Medical, Inc. (NASDAQ:TNON), a medical device company formed in 2012, has developed a proprietary, FDA cleared surgical implant system, which is designed to optimize SI-Joint fixation / fusion surgery and corresponding outcomes. Tenon is preparing a full national launch of this system to address the greatly underserved market opportunity that exists in this space. For more information, please visit https://www.tenonmed.com/ .
Safe Harbor
This press release contains "forward-looking statements," which are statements related to events, results, activities or developments that Tenon Medical 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 Medical'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 Devinetenon@mzgroup.us
Tenon Medical, Inc. Interim Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (In thousands, except per share data)
Three Months Ended June 30, Six Months Ended June 30,
2022 2021 2022 2021 Revenue
$ 135 $ 22 $ 206 $ 37 Cost of sales
271 9 546 20 Gross (Loss) Profit
(136 ) 13 (340 ) 17
Operating Expenses
Research and development
657 237 1,219 324 Sales and marketing
1,943 913 2,219 917 General and administrative
2,720 476 3,757 578 Total Operating Expenses
5,320 1,626 7,195 1,819
Loss from Operations
(5,456 ) (1,613 ) (7,535 ) (1,802 )
Other Income (Expense)
Gain on investments
35 - 36 - Interest expense
(88 ) (62 ) (362 ) (73 ) Other income (expense)
21 - 20 (1 ) Total Other Expense
(32 ) (62 ) (306 ) (74 ) Net Loss
(5,488 ) (1,675 ) (7,841 ) (1,876 ) Loss attributable to non-controlling interest
- (10 ) - (11 ) Net Loss Attributable to Tenon Medical, Inc.
$ (5,488 ) $ (1,665 ) $ (7,841 ) $ (1,865 ) Net Loss Attributable to Tenon Medical, Inc. Per Share of Common Stock
Basic and diluted
$ (0.65 ) $ (2.01 ) $ (1.66 ) $ (2.21 )
Weighted-Average Shares of Common Stock Outstanding
Basic and diluted
8,422 830 4,726 842
Consolidated Statements of Comprehensive Loss:
Net loss
$ (5,488 ) $ (1,675 ) $ (7,841 ) $ (1,876 ) Unrealized loss on investments
(27 ) - (27 ) - Change in foreign currency translation adjustment
(21 ) - (21 ) - Total Comprehensive Loss
(5,536 ) (1,675 ) (7,889 ) (1,876 ) Comprehensive loss attributable to non-controlling interest
- (10 ) - (11 ) Total comprehensive loss attributable to Tenon Medical, Inc.
$ (5,536 ) (1,665 ) $ (7,889 ) $ (1,865 )
Tenon Medical, Inc. Interim Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except share data)
June 30, December31,
2022 2021
(Unaudited) Assets
Current assets:
Cash and cash equivalents
$ 7,875 $ 2,917 Investments
8,141 4,404 Accounts receivable
75 76 Inventory
628 188 Prepaid expenses
139 87 Total current assets
16,858 7,672 Fixed assets, net
241 101 Deposits
51 41 Operating lease right-of-use asset
981 1,084 Deferred offering costs
- 374 TOTAL ASSETS
$ 18,131 $ 9,272 Liabilities, Convertible Preferred Stock, and Stockholders' EQUITY (DEFICIT) Current liabilities:
Accounts payable
$ 345 $ 478 Accrued expenses
1,657 1,088 Current portion of operating lease liability
234 202 Convertible notes payable and accrued interest, net of debt discount of $0 and $31 at June 30, 2022 and December 31, 2021, respectively
- 12,857 Convertible notes payable and accrued interest due to related parties, net of debt discount of $0 and $2 at June 30, 2022 and December 31, 2021, respectively
- 649 Total current liabilities
2,236 15,274 Operating lease liability, net of current portion
782 911 Total liabilities
3,018 16,185
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, $0.001 par value; 4,500,000 and 2,805,839 shares authorized at June 30, 2022 and December 31, 2021, respectively; 0 and 2,550,763 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively
- 12,367 Series B convertible preferred stock, $0.001 par value; 491,222 shares authorized; 0 and 491,222 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively
- 1,272 Stockholders' equity (deficit):
Common stock, $0.001 par value; 130,000,000 and 10,487,904 shares authorized at June 30, 2022 and December 31, 2021, respectively; 11,236,801 and 989,954 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively
11 1 Additional paid-in capital
43,657 113 Accumulated deficit
(28,416 ) (20,575 ) Accumulated other comprehensive income (loss)
(139 ) (91 ) Total stockholders' equity (deficit)
15,113 (20,552 ) TOTAL LIABILITIES, CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS' EQUITY (DEFICIT)
$ 18,131 $ 9,272
SOURCE: Tenon Medical, Inc.
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