UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________ to __________ COMMISSION FILE NUMBER 001-41364 TENON MEDICAL, INC. (Exact name of registrant as specified in its charter) | Delaware | 45-5574718 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | incorporation or organization) | Identification No.) | | 104 Cooper C ...

Part I [Business](index=7&type=section&id=Item%201%20Business) Tenon Medical, Inc. launched its FDA-cleared Catamaran™ SI Joint Fusion System in October 2022, targeting a potential **$2.0 billion** U.S. market for SI joint disorders - The company developed the Catamaran™ SI Joint Fusion System, receiving FDA clearance in **2018** for treating SI Joint disorders[24](index=24&type=chunk) - Tenon estimates the potential annual U.S. market for SI-Joint surgical intervention at approximately **$2.0 billion**, with current market penetration at only **5-7%**[42](index=42&type=chunk)[43](index=43&type=chunk) - The company initiated its national commercial launch in **October 2022**, marketing its product primarily through independent distributors and sales representatives[38](index=38&type=chunk)[67](index=67&type=chunk) - As of March 29, 2024, Tenon owns **4 issued U.S. utility patents** and **16 pending U.S. utility patent applications**, with U.S. patents expected to expire around **2031**[78](index=78&type=chunk)[80](index=80&type=chunk) - The company relies on **five contract manufacturers** for all instruments, implants, and sterilization cases, without long-term manufacturing agreements[108](index=108&type=chunk)[109](index=109&type=chunk) [Risk Factors](index=23&type=section&id=Item%201A%20Risk%20Factors) The company faces significant risks including recurring losses, going concern doubts, single product dependence, intense competition, and internal control weaknesses - The company has a history of recurring losses and negative cash flows, with its auditor expressing substantial doubt about its ability to continue as a going concern[120](index=120&type=chunk) - Tenon is solely dependent on the market adoption of its **single product**, the Catamaran System, where failure to increase sales would materially harm operations[144](index=144&type=chunk) - The company is dependent on a limited number of **single-source contract manufacturers**, where the loss of any could materially affect the business[154](index=154&type=chunk) - The company received a Nasdaq notice on **January 4, 2024**, for non-compliance with board and committee independence, potentially leading to delisting[251](index=251&type=chunk) - Management identified a **material weakness** in internal controls over financial reporting due to a lack of segregation of duties, stemming from limited size and resources[256](index=256&type=chunk) [Unresolved Staff Comments](index=53&type=section&id=Item%201B%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - None [Cybersecurity](index=53&type=section&id=Item%201C%20Cybersecurity) The company maintains a cyber-risk management program overseen by the Board of Directors, and as of the report date, has not experienced any material cybersecurity attacks - The Board of Directors oversees the company's cyber-risk management program[274](index=274&type=chunk) - As of the report date, the company has not experienced any significant cybersecurity attacks that materially affected its business or financial condition[275](index=275&type=chunk) [Properties](index=53&type=section&id=Item%202%20Properties) The company leases its principal executive offices in Los Gatos, California, and owns no real estate - The company's principal executive offices are leased and located in Los Gatos, California[276](index=276&type=chunk) [Legal Proceedings](index=53&type=section&id=Item%203%20Legal%20Proceedings) The company reports no legal proceedings - None [Mine Safety Disclosures](index=53&type=section&id=Item%204%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable Part II [Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=54&type=section&id=Item%205%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq under "TNON", with **3.7 million** shares outstanding as of March 2024, and it has never paid cash dividends - As of **March 29, 2024**, the company had **3,726,974 shares** of common stock outstanding[281](index=281&type=chunk) - The company has never declared or paid a cash dividend and does not expect to in the foreseeable future[282](index=282&type=chunk) - On **November 21, 2023**, the company issued **$1,250,000** in secured notes and warrants to purchase **45,000 shares** of common stock at **$1.94 per share** in a private placement[288](index=288&type=chunk)[290](index=290&type=chunk) | Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | Weighted average exercise price of outstanding options, warrants and rights (b) | Number of securities remaining available for future issuance under equity compensation plans (c) | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 179,005 | $42.54 | 37,486 | | Equity compensation plans not approved by security holders | — | $ — | — | | Total | 179,005 | $42.54 | 37,486 | [Reserved](index=56&type=section&id=Item%206%20%5BReserved%5D) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=57&type=section&id=Item%207%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) For 2023, revenue increased to **$2.9 million** from **$0.7 million** in 2022, with a net loss of **$15.6 million**, raising substantial doubt about its going concern ability | Consolidated Statements of Operations Data in Dollars (in thousands) | 2023 | 2022 | | :--- | :--- | :--- | | Revenue | $ 2,928 | $ 691 | | Gross profit (loss) | 1,241 | (641) | | Loss from operations | (15,727) | (18,725) | | Net loss | $ (15,581) | $ (18,917) | - The **312% increase** in 2023 revenue was primarily due to a rise in surgical procedures using the Catamaran System[345](index=345&type=chunk) - Sales and marketing expenses decreased by **13%** in 2023, primarily due to a **$3.6 million** payment in 2022 for a sales agreement termination, partially offset by increased payroll and commissions in 2023[347](index=347&type=chunk)[348](index=348&type=chunk) - The company had an accumulated deficit of **$55.1 million** as of December 31, 2023, with management stating existing cash is insufficient for the next 12 months, raising substantial doubt about its going concern ability[354](index=354&type=chunk) - In **February 2024**, the company raised **$2.6 million** through a private placement of Series A Preferred Stock and warrants[355](index=355&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=65&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a smaller reporting company, Tenon Medical is not required to provide this information - The Company is a smaller reporting company and is not required to provide the information under this item[365](index=365&type=chunk) [Financial Statements and Supplementary Data](index=66&type=section&id=Item%208%20Financial%20Statements%20and%20Supplementary%20Data) The consolidated financial statements for 2023 and 2022 include an auditor's "going concern" paragraph, showing total assets of **$6.3 million** and a net loss of **$15.6 million** for 2023 - The independent auditor's report for 2023 expresses substantial doubt about the Company's ability to continue as a going concern due to recurring losses, negative cash flows, and limited capital[372](index=372&type=chunk) | (In thousands) | December 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Total current assets | $ 3,889 | $ 9,347 | | TOTAL ASSETS | $ 6,345 | $ 11,089 | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | $ 3,140 | $ 2,530 | | Total liabilities | $ 5,567 | $ 4,837 | | Total stockholders' equity | $ 778 | $ 6,252 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 6,345 | $ 11,089 | | (In thousands, except per share data) | Years Ended December 31, | | | :--- | :--- | :--- | | | 2023 | 2022 | | Revenue | $ 2,928 | $ 691 | | Net Loss | $ (15,581) | $ (18,917) | | Net Loss Per Share (Basic and diluted) | $ (8.59) | $ (23.62) | - Subsequent to year-end, on **February 20, 2024**, the company raised **$2,605,000** through a private placement of Series A Preferred Stock and warrants, also converting outstanding convertible notes[499](index=499&type=chunk)[500](index=500&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=91&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None [Controls and Procedures](index=91&type=section&id=Item%209A%20Controls%20and%20Procedures) Management concluded that disclosure controls were not effective as of **December 31, 2023**, due to a material weakness in internal control over financial reporting from a lack of segregation of duties - The CEO and CFO concluded that as of **December 31, 2023**, the company's disclosure controls and procedures were not effective at a reasonable assurance level[506](index=506&type=chunk) - A **material weakness** was identified in internal control over financial reporting due to a lack of segregation of duties, attributed to the company's limited size and resources[507](index=507&type=chunk)[508](index=508&type=chunk) - The company plans to remediate the material weakness by increasing the capacity of its qualified financial personnel[509](index=509&type=chunk) [Other Information](index=92&type=section&id=Item%209B%20Other%20Information) The company reports no other information - None [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=92&type=section&id=Item%209C%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - None Part III [Directors, Executive Officers and Corporate Governance](index=93&type=section&id=Item%2010%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) The company's Board of Directors consists of **seven members**, including **four independent directors**, and has established three standing committees, along with adopting a clawback policy - The Board of Directors consists of **seven members**, with **four** determined to be independent[531](index=531&type=chunk)[533](index=533&type=chunk) - The Board has established an Audit Committee, a Compensation Committee, and a Nominating and Corporate Governance Committee[534](index=534&type=chunk) - On **November 28, 2023**, the Board adopted an executive compensation recoupment (clawback) policy consistent with Exchange Act Rule 10D-1[540](index=540&type=chunk) [Executive Compensation](index=99&type=section&id=Item%2011%20Executive%20Compensation) In fiscal year 2023, named executive officers received total compensation ranging from **$350,225** to **$487,600**, with independent directors receiving **$232,500** in cash compensation | Name and Principal Position | Year | Salary ($) | Bonus ($) | Option/RSU Awards($) | Total ($) | | :--- | :--- | :--- | :--- | :--- | :--- | | Steven M. Foster, CEO | 2023 | 400,000 | 87,600 | — | 487,600 | | | 2022 | 300,000 | 70,000 | 1,926,634 | 2,296,634 | | Steven Van Dick, CFO | 2023 | 325,000 | 60,225 | — | 385,225 | | | 2022 | 275,000 | 148,125 | 808,998 | 1,232,123 | | Richard Ginn, CTO | 2023 | 290,000 | 60,225 | — | 350,225 | | | 2022 | 275,000 | 148,125 | 3,995,603 | 4,418,728 | - Employment agreements for executive officers include severance equal to **one year's base salary** and **12 months** of health care coverage upon termination without cause or for good reason[553](index=553&type=chunk)[557](index=557&type=chunk)[561](index=561&type=chunk) - Independent directors received **$232,500** in total cash compensation for board and committee service in 2023, with no equity compensation issued[573](index=573&type=chunk)[574](index=574&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=104&type=section&id=Item%2012%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) As of **March 29, 2024**, all directors and executive officers as a group beneficially owned **5.6%** of common stock, with Zuhlke Ventures AG holding **9.4%** and other significant Series A Preferred Stock holders - All officers and directors as a group beneficially own **209,133 shares**, representing **5.6%** of outstanding common stock as of **March 29, 2024**[586](index=586&type=chunk) - Zuhlke Ventures AG is a **5% or greater stockholder**, beneficially owning **244,773 shares** of common stock, or **9.4%**[586](index=586&type=chunk) - The Beckham-Shufeldt Family Trust and Ascent Special Ventures LLC are significant holders of Series A Preferred Stock, with beneficial ownership of **25.7%** and **26.4%** respectively[586](index=586&type=chunk) [Certain Relationships and Related Party Transactions, and Director Independence](index=106&type=section&id=Item%2013%20Certain%20Relationships%20and%20Related%20Party%20Transactions%2C%20and%20Director%20Independence) The company has a consulting agreement with Richard Ferrari, its Executive Chairman, dated May 7, 2021, for his services - The company has a consulting agreement with Richard Ferrari, its Executive Chairman, dated **May 7, 2021**[588](index=588&type=chunk) [Principal Accountant Fees and Services](index=106&type=section&id=Item%2014%20Principal%20Accountant%20Fees%20and%20Services) Haskell & White LLP was engaged as the independent auditor for 2023 with **$158,500** in fees, while Armanino LLP served as auditor for 2022 and prior, with **$234,083** in 2023 and **$410,893** in 2022 | Fees Paid to H&W (2023) | Amount | | :--- | :--- | | Audit fees | $158,500 | | Total fees | $158,500 | | Fees Paid to Armanino | 2023 | 2022 | | :--- | :--- | :--- | | Audit fees | $179,102 | $338,253 | | Audit-related fees | $54,981 | $72,640 | | Total fees | $234,083 | $410,893 | Part IV [Exhibits, Financial Statement Schedules](index=107&type=section&id=Item%2015%20Exhibit%20and%20Financial%20Statement%20Schedules) This section provides an index of all exhibits filed as part of the Annual Report, including consolidated financial statements and various corporate documents - This section provides an index of all exhibits filed with the 10-K, including corporate governance documents, material agreements, and certifications[596](index=596&type=chunk)

Financial Performance - Fourth quarter 2023 revenue increased 192% year-over-year to $808,000, while full year 2023 revenue rose 324% to $2.9 million[5] - Gross profit for the full year 2023 was $1.2 million, a significant improvement from a gross loss of $641,000 in 2022[5] - Operating losses for the fourth quarter of 2023 totaled $3.1 million, a decrease from $7.9 million in the same period of 2022[10] - Net loss for the year ended December 31, 2023, was $15.6 million, compared to a net loss of $18.9 million in the prior year[11] - As of December 31, 2023, cash and cash equivalents totaled $2.4 million, an increase from $2.1 million at the end of 2022[13] Surgical Procedures and Training - Surgical procedures utilizing the Catamaran System increased by 312% year-over-year for the full year 2023, with a 179% increase in the fourth quarter[5] - The company hosted 133 physicians in Catamaran-focused training sessions throughout 2023, including a webinar series in Q4 attended by over sixty healthcare providers[4] Future Plans - The company plans to expand educational activities and refine its product offerings in 2024 based on feedback from physician customers[6] - Tenon issued approximately $3.85 million of Series A Preferred Stock, raising approximately $2.6 million in gross proceeds and retiring $1.25 million in secured debt[5] Gross Margin - Gross margin reached 69% in the fourth quarter of 2023, up from 57% in Q3 2023[5]

Financial Data and Key Metrics Changes - For the full year of 2023, revenue grew 324% to $2.9 million, and gross profit increased to $1.2 million compared to a gross loss for the full year of 2022 [6][9][21] - Operating losses totaled $3.1 million in the fourth quarter compared to a loss of $7.9 million in the fourth quarter of 2022, and for the year ended December 31, 2023, operating losses totaled $15.7 million compared to $18.7 million in the prior year [10][38] - Gross margin improved to 69% in the fourth quarter, up from 57% in the third quarter [17] Business Line Data and Key Metrics Changes - The Catamaran System experienced a 312% increase in the number of surgical procedures from the prior year, driving strong revenue growth with a 192% increase year-over-year [33][37] - The company trained 28 physicians in the fourth quarter and 133 over the entire year [25] Market Data and Key Metrics Changes - The company ended the fourth quarter with solid momentum in revenue and a third consecutive quarter of positive gross margin [23] - Cash and cash equivalents totaled $2.4 million as of December 31, 2023, down from $8.6 million as of December 31, 2022 [22] Company Strategy and Development Direction - The company focuses on building market share and enhancing commercialization efforts for the Catamaran System [16] - There is a commitment to validating patient outcomes and expanding the application of the product offering to address SI revision surgery and adjunct to multilevel fusion [40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for continued growth in commercialization, supported by an expanding sales and marketing infrastructure [23] - The company expects to incur additional losses in the future but remains focused on achieving long-term value for shareholders [38] Other Important Information - The company successfully passed a full Quality System Inspection Technique (QSIT) Level 2 inspection conducted by the FDA, validating its quality system and operational procedures [19] Q&A Session Summary Question: How many surgeons did you train during the quarter? - The company trained 28 physicians over the quarter and 133 over the entire year [25] Question: What is the final enrollment number for the post-approval study? - The study was approved for 50 patients, with an expected final enrollment between 40 and 50 [26] Question: Do you have a target for physician training per quarter in 2024? - The company aims to train approximately 25 to 30 well-targeted physicians each quarter [45] Question: What trends are you seeing in the utilization of the Catamaran System? - The number of procedures is still growing, with physicians increasingly incorporating SI into their practice [46] Question: What has been the reception of the new instrumentation kit? - The reaction to the new JIB technology has been outstanding, improving visualization during procedures [48]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________ to __________ COMMISSION FILE NUMBER 001-41364 TENON MEDICAL, INC. (Exact name of registrant as specified in its charter) (State or other jurisd ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q (Mark One) COMMISSION FILE NUMBER 001-41364 TENON MEDICAL, INC. (Exact name of registrant as specified in its charter) Delaware 45-5574718 (State or other jurisdiction of incorporation or organization) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2023 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________ to __________ COMMISSION FILE NUMBER 001-41364 TENON MEDICAL, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction o ...

Financial Performance - The company reported a significant increase in revenue, achieving $150 million for the fiscal year, representing a 25% growth compared to the previous year[7] - The company anticipates a revenue growth of 30% for the next fiscal year, projecting $195 million in total revenue[9] - The gross margin improved to 60%, up from 55% in the previous year, indicating better cost management and pricing strategies[7] - The company reported a net loss of $5 million, but expects to achieve profitability within the next two years[9] User Growth - User data showed a 40% increase in active users, reaching 1.2 million by the end of the fiscal year[7] Product Development and Market Expansion - New product launches are expected to contribute an additional $20 million in revenue, with a focus on expanding the product line in the medical devices sector[10] - The company is actively pursuing market expansion strategies, targeting three new international markets by the end of the next fiscal year[10] - The company plans to allocate $10 million for potential acquisitions to enhance its product offerings and market presence[10] Research and Development - Research and development expenses increased by 15%, totaling $30 million, to support innovation and new technology development[10] Risks and Challenges - The management highlighted the importance of adapting to regulatory changes in the healthcare industry as a key risk factor[16] - The company has incurred losses in the past and its financial statements have been prepared on a going concern basis, indicating potential challenges in achieving or sustaining profitability in the future[17] - The company operates in a highly competitive environment, and failure to compete successfully against existing or potential competitors may negatively affect sales and operating results[17] - The company is dependent on a limited number of contract manufacturers, and the loss of any of these manufacturers could materially adversely affect its business[17] - The size and future growth of the SI-Joint fixation market are uncertain, and estimates of cost savings from The CATAMARAN System procedure may be smaller than anticipated, potentially impacting sales growth[17] - The company may seek growth through acquisitions or investments in new businesses, products, or technologies, and failure to manage these effectively could have a material adverse effect[17] - The company faces risks related to compliance with extensive governmental regulations, and failure to comply could harm its business[17] - The company is increasingly dependent on information technology, facing risks such as cybersecurity and data leakage[17] - The company may incur product liability losses, and insurance coverage may be inadequate or unavailable to cover these losses[17] - The company has a limited operating history and may face difficulties typical of early-stage companies in rapidly evolving markets[17] - Geopolitical conditions, including trade disputes and acts of war or terrorism, could adversely affect the company's operations and financial results[17]

Revenue and Growth - Tenon Medical reported revenue of $208,000 for Q3 2022, a 197% increase from $70,000 in Q3 2021, and $414,000 for the nine months ended September 30, 2022, up 287% from $107,000 in the same period of 2021[123][124]. - The number of surgical procedures using The Catamaran System increased by 200% and 345% for the three and nine months ended September 30, 2022, respectively, compared to the same periods in 2021[124]. Costs and Expenses - The cost of goods sold for Q3 2022 was $302,000, a 1,578% increase from $18,000 in Q3 2021, and $848,000 for the nine months ended September 30, 2022, up 2,132% from $38,000 in the same period of 2021[123][124]. - Operating expenses totaled $3,168,000 for Q3 2022, up from $2,149,000 in Q3 2021, with significant increases in research and development, sales and marketing, and general and administrative expenses[123][124]. - Total operating expenses for the nine months ended September 30, 2022, were $10,363 million, an increase of $6,395 million compared to the same period in 2021[126]. - Research and development expenses for Q3 2022 increased by $196 million (33%) compared to Q3 2021, totaling $797 million[126]. - Sales and marketing expenses for Q3 2022 rose by $89 million (16%) compared to Q3 2021, reaching $645 million[127]. - General and administrative expenses for Q3 2022 surged by $734 million (74%) compared to Q3 2021, amounting to $1,726 million[129]. Profitability and Loss - The gross loss for Q3 2022 was $(94,000), compared to a gross profit of $52,000 in Q3 2021, resulting in a gross margin percentage of (45%) in Q3 2022 versus 74% in Q3 2021[123][124]. - Net loss for Q3 2022 was $(3,171,000), compared to a net loss of $(2,363,000) in Q3 2021, and $(11,012,000) for the nine months ended September 30, 2022, compared to $(4,239,000) in the same period of 2021[123][124]. - The company has incurred net losses of approximately $11,012,000 for the first nine months of 2022 and an accumulated deficit of approximately $31.6 million as of September 30, 2022[111]. Cash Flow and Financing - Cash and cash equivalents as of September 30, 2022, were $12.5 million, with no outstanding debt[131]. - Cash used in operating activities for the nine months ended September 30, 2022, was $(8,640) million, a 232% increase from $(2,602) million in the same period of 2021[136]. - Cash provided by financing activities for the nine months ended September 30, 2022, was $14.1 million, primarily from the initial public offering[138]. - The company plans to raise additional capital through public or private equity offerings, debt financings, and collaborations or licensing arrangements[133]. Future Outlook - Tenon Medical launched The Catamaran System nationally in October 2022 and is building a sales and marketing infrastructure to address the market opportunity[109]. - The company expects operating expenses to increase in absolute dollars as it continues to invest in growth and development of The Catamaran System[117][120]. - The gross margin percentage decreased due to higher operations overhead spending, which increased by 7,844% year-over-year as the company progressed toward the commercial launch of The Catamaran System[125].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2022 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM to COMMISSION FILE NUMBER 001-41364 TENON MEDICAL, INC. (Exact name of registrant as specified in its charter) Delaware 45-5574718 (State or other jurisdiction ...