Tenon Medical(US:TNON)2024-05-14 22:53Revenue and Profitability - Revenue for the three months ended March 31, 2024, was $719,000, a 66% increase from $433,000 in the same period of 2023, primarily due to a 42% increase in the number of surgical procedures using The Catamaran System[93][94] - Gross profit for the same period improved to $470,000, compared to a loss of $47,000 in 2023, resulting in a gross margin of 65% compared to (11)% in the prior year[93][94] - The net loss for the three months ended March 31, 2024, was $3,576,000, compared to a net loss of $4,830,000 in the same period of 2023[93] Operating Expenses - Total operating expenses decreased by 18% to $3,976,000 in Q1 2024 from $4,839,000 in Q1 2023, driven by reductions in research and development, sales and marketing, and general and administrative expenses[96] - Research and development expenses decreased by 20% to $669,000 in Q1 2024 from $834,000 in Q1 2023, primarily due to lower professional fees and payroll expenses[96] - Sales and marketing expenses fell by 32% to $1,381,000 in Q1 2024 from $2,026,000 in Q1 2023, attributed to reduced transition fees and payroll expenses[97] - General and administrative expenses slightly decreased by 3% to $1,926,000 in Q1 2024 from $1,979,000 in Q1 2023, with increased insurance costs partially offsetting reductions in professional service fees[98] Cash Flow and Financing - As of March 31, 2024, the company had cash and cash equivalents of $4.4 million and no outstanding debt[100] - The company reported a net cash used in operating activities of $(2,338) thousand for the three months ended March 31, 2024, a 35% improvement from $(3,576) thousand in the same period of 2023[104] - Cash provided by financing activities for the three months ended March 31, 2024 was $4,371 thousand, a significant increase from $(42) thousand in the same period of 2023, representing a 10,507% change[104] - The company plans to raise additional capital through public or private equity offerings, debt financings, and collaborations, which may dilute existing stockholders' ownership[103] - The company entered into a Series A Purchase Agreement on February 20, 2024, raising an aggregate offering price of $2,605,000 through the sale of 172,239 shares of Series A Preferred Stock and warrants[102] - The company experienced a net increase in cash and cash equivalents of $1,960 thousand for the three months ended March 31, 2024, an 87% increase from $1,050 thousand in the same period of 2023[104] - The company has not achieved positive cash flow from operations to date and anticipates that existing cash will not be sufficient to fund operating expenses for the next 12 months[101] - The company reported a decrease in cash provided by investing activities to $(119) thousand for the three months ended March 31, 2024, compared to $4,669 thousand in the same period of 2023, a 103% decline[104] Company Overview and Future Outlook - The company launched The Catamaran System nationally in October 2022 and is building a sales and marketing infrastructure to address the market opportunity[79] - The company has an accumulated deficit of approximately $58.6 million as of March 31, 2024, since its inception in 2012[81] - As of March 31, 2024, the company had an accumulated deficit of $58.6 million and expects to incur additional losses in the future[101] - Management believes there is substantial doubt about the company's ability to continue as a going concern for the next twelve months from the issuance of the consolidated financial statements[103] - As of March 31, 2024, the company had a total of 256,968 shares of Series A Preferred Stock outstanding[102]