Treace(TMCI) - 2021 Q3 - Quarterly Report

Special Notes Regarding Forward-Looking Statements This section outlines the nature of forward-looking statements, emphasizing that actual results may differ materially due to risks and uncertainties, and states the company's policy not to update them unless legally required Forward-Looking Statements Overview Outlines forward-looking statements, noting actual results may differ materially due to risks, and the company's policy not to update them unless legally required - The report contains forward-looking statements concerning the company's business, operations, financial performance, and plans, identifiable by terms like 'anticipate,' 'expect,' 'plan,' 'will,' etc[9] - Examples of forward-looking statements include expectations regarding product use, business growth, IPO proceeds utilization, government reimbursement, personnel retention, supply chain, product development, regulatory clearances, manufacturing, intellectual property, market expansion, compliance, financial estimates, emerging growth company status, new product identification, COVID-19 impact, and clinical trials[10] - Actual results may differ materially from expectations due to known and unknown risks, uncertainties, and other factors, including those listed under 'Risk Factors'[10][11] - The company assumes no obligation to update or revise these forward-looking statements for any reason after the report date, except as required by law[12] PART I—FINANCIAL INFORMATION This part presents the unaudited condensed financial statements and management's discussion and analysis of financial condition and results of operations Item 1. Financial Statements (Unaudited) Presents Treace Medical Concepts' unaudited condensed financial statements, detailing financial position, performance, and cash flows Condensed Balance Sheets Condensed Balance Sheet Highlights (in thousands) | Metric | September 30, 2021 | December 31, 2020 | Change (Amount) | Change (%) | | :-------------------------- | :------------------- | :------------------ | :-------------- | :--------- | | Cash and cash equivalents | $109,459 | $18,079 | $91,380 | 505.5% | | Accounts receivable, net | $11,795 | $14,486 | $(2,691) | -18.6% | | Inventories | $10,351 | $7,820 | $2,531 | 32.4% | | Total current assets | $135,365 | $40,978 | $94,387 | 230.3% | | Property and equipment, net | $2,225 | $829 | $1,396 | 168.4% | | Total assets | $137,590 | $41,807 | $95,783 | 229.1% | | Total current liabilities | $10,723 | $11,597 | $(874) | -7.5% | | Total liabilities | $40,217 | $41,031 | $(814) | -2.0% | | Total stockholders' equity | $97,373 | $776 | $96,597 | 12448.1% | | Total liabilities and stockholders' equity | $137,590 | $41,807 | $95,783 | 229.1% | Condensed Statements of Operations and Comprehensive Loss Condensed Statements of Operations and Comprehensive Loss (in thousands, except per share) | Metric | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Change (Amount) | Change (%) | | :------------------------------------ | :------------------------------ | :------------------------------ | :-------------- | :--------- | | Revenue | $21,619 | $14,266 | $7,353 | 51.5% | | Cost of goods sold | $4,248 | $2,911 | $1,337 | 45.9% | | Gross profit | $17,371 | $11,355 | $6,016 | 53.0% | | Total operating expenses | $22,831 | $11,418 | $11,413 | 100.0% | | Loss from operations | $(5,460) | $(63) | $(5,397) | -8566.7% | | Net loss and comprehensive loss | $(6,418) | $(2,655) | $(3,763) | 141.7% | | Net loss per share, basic and diluted | $(0.12) | $(0.08) | $(0.04) | 50.0% | | Metric | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | Change (Amount) | Change (%) | | :------------------------------------ | :----------------------------- | :----------------------------- | :-------------- | :--------- | | Revenue | $60,980 | $33,260 | $27,720 | 83.3% | | Cost of goods sold | $11,519 | $7,386 | $4,133 | 56.0% | | Gross profit | $49,461 | $25,874 | $23,587 | 91.2% | | Total operating expenses | $60,374 | $28,654 | $31,720 | 110.7% | | Loss from operations | $(10,913) | $(2,780) | $(8,133) | 292.6% | | Net loss and comprehensive loss | $(13,933) | $(6,235) | $(7,698) | 123.5% | | Net loss per share, basic and diluted | $(0.30) | $(0.18) | $(0.12) | 66.7% | Condensed Statements of Stockholders' Equity (Deficit) Condensed Statements of Stockholders' Equity (Deficit) Highlights (in thousands) | Metric | December 31, 2020 | September 30, 2021 | Change (Amount) | Change (%) | | :-------------------------- | :------------------ | :----------------- | :-------------- | :--------- | | Convertible Preferred Stock | $7,935 | $0 | $(7,935) | -100.0% | | Common Stock Amount | $28 | $45 | $17 | 60.7% | | Additional Paid-In Capital | $14,166 | $132,614 | $118,448 | 836.2% | | Accumulated Deficit | $(21,353) | $(35,286) | $(13,933) | 65.2% | | Total Stockholders' Equity | $776 | $97,373 | $96,597 | 12448.1% | - Issuance of common stock from initial public offering, net of costs, contributed $107,603 thousand to additional paid-in capital[22] - Conversion of 6,687,475 shares of convertible preferred stock and accrued dividends into common stock resulted in a $7,935 thousand decrease in preferred stock and a $7,928 thousand increase in additional paid-in capital[22] Condensed Statements of Cash Flows Condensed Statements of Cash Flows (Nine Months Ended September 30, in thousands) | Cash Flow Activity | 2021 | 2020 | Change (Amount) | Change (%) | | :----------------------------- | :------- | :------- | :-------------- | :--------- | | Net cash used in operating activities | $(13,441) | $(6,942) | $(6,499) | 93.6% | | Net cash used in investing activities | $(1,805) | $(981) | $(824) | 84.0% | | Net cash provided by financing activities | $106,626 | $11,180 | $95,446 | 853.7% | | Net increase in cash and cash equivalents | $91,380 | $3,257 | $88,123 | 2705.5% | | Cash and cash equivalents at end of period | $109,459 | $15,396 | $94,063 | 610.9% | - Noncash financing activities included the conversion of $7,935 thousand of convertible preferred stock and accrued dividends into common stock[26] Notes to Condensed Financial Statements These notes provide detailed explanations and disclosures for the condensed financial statements, covering accounting policies, balance sheet components, debt, and equity 1. Formation and Business of the Company Details the company's business, recent IPO, stock split, and the impact of the COVID-