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].
Tenon Medical(TNON) - 2022 Q3 - Quarterly Report