2024 Q3 Form 10-Q Financial Statement

#000121390024068416 Filed on August 13, 2024

View on sec.gov

Income Statement

Concept 2024 Q3 2024 Q2 2023 Q2
Revenue $887.0K $901.0K $743.0K
YoY Change -6.04% 21.27% 450.37%
Cost Of Revenue $469.0K $431.0K $549.0K
YoY Change 14.67% -21.49% 102.58%
Gross Profit $418.0K $470.0K $194.0K
YoY Change -21.87% 142.27% -242.65%
Gross Profit Margin 47.13% 52.16% 26.11%
Selling, General & Admin $2.976M $3.634M $3.615M
YoY Change -6.3% 0.53% -22.47%
% of Gross Profit 711.96% 773.19% 1863.4%
Research & Development $657.0K $708.0K $901.0K
YoY Change -10.85% -21.42% 37.14%
% of Gross Profit 157.18% 150.64% 464.43%
Depreciation & Amortization $105.0K $86.00K $35.00K
YoY Change 128.26% 145.71% 84.21%
% of Gross Profit 25.12% 18.3% 18.04%
Operating Expenses $3.633M $4.342M $4.516M
YoY Change -7.16% -3.85% -15.11%
Operating Profit -$3.215M -$3.872M -$4.322M
YoY Change -4.83% -10.41% -20.78%
Interest Expense $31.00K $39.00K
YoY Change 675.0%
% of Operating Profit
Other Income/Expense, Net $31.00K $46.00K $37.00K
YoY Change -32.61% 24.32% -215.63%
Pretax Income -$3.184M -$3.826M -$4.285M
YoY Change -4.44% -10.71% -21.92%
Income Tax
% Of Pretax Income
Net Earnings -$3.184M -$3.826M -$4.285M
YoY Change -4.44% -10.71% -21.92%
Net Earnings / Revenue -358.96% -424.64% -576.72%
Basic Earnings Per Share -$3.63 -$1.02 -$0.33
Diluted Earnings Per Share -$3.63 -$1.02 -$0.33
COMMON SHARES
Basic Shares Outstanding 3.952M shares 3.729M shares 11.25M
Diluted Shares Outstanding 877.0 shares 3.749K shares 13.05K shares

Balance Sheet

Concept 2024 Q3 2024 Q2 2023 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $9.162M $1.968M $6.345M
YoY Change 171.79% -68.98% -60.38%
Cash & Equivalents $9.162M $1.968M $5.852M
Short-Term Investments $493.0K
Other Short-Term Assets $543.0K $831.0K $413.0K
YoY Change 57.39% 101.21% 197.12%
Inventory $607.0K $609.0K $570.0K
Prepaid Expenses $413.0K
Receivables $876.0K $679.0K $601.0K
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $11.19M $4.087M $7.929M
YoY Change 125.43% -48.46% -52.97%
LONG-TERM ASSETS
Property, Plant & Equipment $906.0K $904.0K $945.0K
YoY Change -5.23% -4.34% 292.12%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $2.500M
YoY Change
Other Assets $482.0K $490.0K $219.0K
YoY Change -30.65% 123.74% 329.41%
Total Long-Term Assets $1.851M $1.919M $1.926M
YoY Change -21.4% -0.36% 51.3%
TOTAL ASSETS
Total Short-Term Assets $11.19M $4.087M $7.929M
Total Long-Term Assets $1.851M $1.919M $1.926M
Total Assets $13.04M $6.006M $9.855M
YoY Change 78.18% -39.06% -45.65%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.093M $1.111M $912.0K
YoY Change 43.25% 21.82% 164.35%
Accrued Expenses $908.0K $932.0K $1.130M
YoY Change 59.02% -17.52% -31.8%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $3.178M $3.403M $6.866M
YoY Change 3.01% -50.44% 207.07%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $1.670M $1.771M $2.086M
YoY Change -2.68% -15.1% 166.75%
Total Long-Term Liabilities $1.670M $1.771M $2.086M
YoY Change -2.68% -15.1% 166.75%
TOTAL LIABILITIES
Total Short-Term Liabilities $3.178M $3.403M $6.866M
Total Long-Term Liabilities $1.670M $1.771M $2.086M
Total Liabilities $4.848M $5.174M $8.952M
YoY Change 0.98% -42.2% 196.62%
SHAREHOLDERS EQUITY
Retained Earnings -$65.66M -$62.48M -$48.61M
YoY Change 26.42% 28.53% 71.06%
Common Stock $3.000K $4.000K $22.00K
YoY Change 50.0% -81.82% 100.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $8.191M $832.0K $903.0K
YoY Change
Total Liabilities & Shareholders Equity $13.04M $6.006M $9.855M
YoY Change 78.18% -39.06% -45.65%

Cashflow Statement

Concept 2024 Q3 2024 Q2 2023 Q2
OPERATING ACTIVITIES
Net Income -$3.184M -$3.826M -$4.285M
YoY Change -4.44% -10.71% -21.92%
Depreciation, Depletion And Amortization $105.0K $86.00K $35.00K
YoY Change 128.26% 145.71% 84.21%
Cash From Operating Activities -$2.343M -$2.420M -$3.176M
YoY Change -25.74% -23.8% 14.95%
INVESTING ACTIVITIES
Capital Expenditures $104.0K $0.00 $128.0K
YoY Change 76.27% -100.0% -412.2%
Acquisitions
YoY Change
Other Investing Activities $1.257M
YoY Change -115.44%
Cash From Investing Activities -$104.0K $0.00 $1.129M
YoY Change -123.96% -100.0% -113.8%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 9.641M 0.000 4.707M
YoY Change 3593.87% -100.0% -66.84%
NET CHANGE
Cash From Operating Activities -2.343M -2.420M -3.176M
Cash From Investing Activities -104.0K 0.000 1.129M
Cash From Financing Activities 9.641M 0.000 4.707M
Net Change In Cash 7.194M -2.420M 2.660M
YoY Change -392.44% -190.98% -18.1%
FREE CASH FLOW
Cash From Operating Activities -$2.343M -$2.420M -$3.176M
Capital Expenditures $104.0K $0.00 $128.0K
Free Cash Flow -$2.447M -$2.420M -$3.304M
YoY Change -23.86% -26.76% 21.38%

Facts In Submission

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>1. Organization and Business</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Nature of operations</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Tenon Medical, Inc. (the “Company”) was incorporated in the State of Delaware on June 19, 2012 and was headquartered in San Ramon, California until June 2021 when it relocated to Los Gatos, California. The Company is a medical device company that has developed The Catamaran™ SI Joint Fusion System (“the Catamaran System”) that offers a novel, less invasive approach to the sacroiliac joint (the “SI Joint”) using a single, robust, titanium implant for treatment of the most common types of SI Joint disorders that cause lower back pain. The Company received U.S. Food and Drug Administration (“FDA”) clearance in 2018 for The Catamaran System and is currently focused on the U.S. market. Since the national launch of the Catamaran System in October 2022, the Company is focused on three commercial opportunities: 1) Primary SI Joint procedures, 2) Revision procedures of failed SI Joint implants and 3) SI Joint fusion adjunct to a spine fusion construct.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Principles of consolidation</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The condensed consolidated financial statements of the Company for the three and six months ended June 30, 2023 and as of December 31, 2023 include the accounts of its wholly-owned subsidiary, Tenon Technology AG (“TTAG”), a Swiss company. All intercompany balances and transactions have been eliminated in consolidation. The financial statements of TTAG are prepared for the same reporting period as the parent, using consistent accounting policies in all material respects. In 2024, TTAG was dissolved and, as such, the financial statements for the three and six months ended June 30, 2024 and as of June 30, 2024 only include the accounts of the Company.</p>
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0.08 pure
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CY2023Q2 tnon Percentage Of Gross Proceeds
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0.03 pure
us-gaap Common Stock Conversion Basis
CommonStockConversionBasis
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tnon Purchase Exceed Amount
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us-gaap Stock Issued During Period Shares Purchase Of Assets
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tnon Percentage Of Outstanding Shares
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tnon Percentage Of Shares Issued To Stockholders
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tnon Deemed Liquidation Percentage
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1.10 pure
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0.10 pure
CY2024Q2 us-gaap Stock Issued During Period Shares New Issues
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ClassOfWarrantsOfRightsGrantDateFairValueOfWarrants
3164
CY2023Q2 tnon Fair Value Of Offering Warrant
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1.58
CY2023Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice
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0.0518 pure
CY2023Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate Minimum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum
1 pure
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us-gaap Loss Contingency Accrual Payments
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us-gaap Loss Contingency Accrual Provision
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CY2024Q2 us-gaap Loss Contingency Accrual At Carrying Value
LossContingencyAccrualAtCarryingValue
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CY2024Q2 ecd Non Rule10b51 Arr Trmntd Flag
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CY2024Q2 us-gaap Accumulated Other Comprehensive Income Loss Net Of Tax
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us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2024Q2 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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CY2024Q2 us-gaap Stock Issued During Period Value Restricted Stock Award Gross
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dei Amendment Flag
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EntityCentralIndexKey
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