Tenon Medical(US:TNON)2025-11-13 21:01Revenue and Profitability - Revenue for the three months ended September 30, 2025, was $1,173,000, a 32% increase from $887,000 in the same period of 2024[99] - Gross profit for the three months ended September 30, 2025, was $773,000, representing a gross profit margin of 66%, compared to 47% in the same period of 2024[100] - The net loss for the three months ended September 30, 2025, was $3,339,000, compared to a net loss of $3,184,000 in the same period of 2024[99] Operating Expenses - Operating expenses for the three months ended September 30, 2025, totaled $4,165,000, a 15% increase from $3,633,000 in the same period of 2024[102] - Research and development expenses for the three months ended September 30, 2025, decreased by 35% to $428,000 from $657,000 in the same period of 2024[102] - Sales and marketing expenses for the three months ended September 30, 2025, increased by 27% to $1,538,000 from $1,212,000 in the same period of 2024[103] - General and administrative expenses for the three months ended September 30, 2025, increased by 25% to $2,199,000 from $1,764,000 in the same period of 2024[104] Cash Flow and Financing - As of September 30, 2025, the company had cash and cash equivalents of $3.4 million and an accumulated deficit of $78.5 million[106] - For the nine months ended September 30, 2025, net cash used in operating activities was $(8,521) thousand, a 19% increase in cash used compared to $(7,101) thousand for the same period in 2024[110] - Cash used in investing activities for the nine months ended September 30, 2025 was $(831) thousand, a 273% increase from $(223) thousand in 2024[110] - Cash provided by financing activities for the nine months ended September 30, 2025 was $6,259 thousand, a 56% decrease from $14,012 thousand in 2024[111] - The company plans to raise $2,850,000 through a PIPE financing, issuing 2,217,904 shares of common stock at a price of $1.285 per share[108] Future Outlook and Concerns - The company expects operating expenses to increase in absolute dollars as it continues to invest in growth and product development[96] - The company expects to incur additional losses in the future and has not achieved positive cash flow from operations to date[106] - The company may face challenges in raising additional capital, which could delay or suspend sales and marketing efforts, research and development activities, or other operations[109] - The company has substantial doubt about its ability to continue as a going concern for the next twelve months due to uncertainty in raising capital[109] - The company recorded a net decrease in cash and cash equivalents of $(3,039) thousand for the nine months ended September 30, 2025, compared to an increase of $6,734 thousand in 2024, representing a 385% decrease[111] Revenue Sources - The Catamaran System and the SImmetry SI Joint Fusion System are the primary revenue sources, with fluctuations based on surgical procedure volumes and discounts[91]