Tenon Medical(US:TNON)2024-05-15 07:18Financial Data and Key Metrics Changes - Revenue for Q1 2024 was $719,000, a 66% increase compared to $433,000 in Q1 2023, primarily driven by a 42% rise in surgical procedures using the Catamaran system [17][7][20] - Gross profit in Q1 2024 was $470,000, representing a gross margin of 65%, compared to a gross loss of $47,000 in the same period last year [18][20] - Operating losses decreased to $3.5 million in Q1 2024 from $4.9 million in Q1 2023, with net loss also improving to $3.6 million from $4.8 million [19][20] Business Line Data and Key Metrics Changes - The Catamaran system saw a 42% increase in surgical procedures during Q1 2024, contributing to the overall revenue growth [7][17] - The company reported its fourth consecutive quarter of positive gross profit, maintaining a steady gross margin of 65% [7][18] Market Data and Key Metrics Changes - Coverage was achieved in two of five geographic regions, with new personnel added to enhance market penetration [6][5] - The company is focusing on a go-to-market strategy targeting SI-focused physicians and network partners [6][5] Company Strategy and Development Direction - The company is prioritizing the scale of its commercialization strategy for the Catamaran system, aiming to broaden its strategic marketing and promotion efforts [22][13] - The addition of Kristine Jacques to the Board of Directors is expected to provide valuable insights into go-to-market strategies in the medical device field [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing momentum in the market, supported by year-over-year increases in Catamaran procedures and positive interim clinical results [23][24] - The company is committed to delivering technologies that improve patient outcomes while pursuing long-term value for shareholders [24] Other Important Information - The company generated $2.6 million from a preferred stock raise and retired $1.25 million in secured debt during Q1 2024, strengthening its balance sheet [15][20] - The ongoing post-market clinical study is nearing completion of enrollment, with interim analysis expected in fall 2024 [10][9] Q&A Session Summary Question: What is the mix between interventional pain physicians and spine surgeons in the workshops? - The company reported a 50-50 mix between orthopedic and neuro spine surgeons and interventional pain surgeons in their workshops [26] Question: How many patients were in the first group of data released from the post-market study? - The first group included six patients who reached the 12-month milestone, with future data releases expected to show increasing numbers [28][31] Question: What is the maximum number of patients for the study and when will physicians feel comfortable using the data? - The study is set for a maximum of 50 patients, with physicians likely to be influenced by the interim analysis at the 12-month mark [32][33] Question: How many active sites are involved in the study? - There are currently eight active sites, with enrollment nearing completion [38] Question: How does the company anticipate the rollout of physician training? - The company expects an increase in training volume as compelling clinical data becomes available, leading to more inquiries from physicians [41] Question: What is the expected gross margin at normal volume? - The company anticipates maintaining a gross margin of around 65% initially, with potential to reach mid-70s as volumes increase [46][48]