TNON - Earnings call 3 2022 | Tenon Medical, Inc.

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Operator

Greetings, and welcome to the Tenon Medical Third Quarter 2022 Financial Results and Corporate Update Conference Call.

As a reminder, this call is being recorded.

Your hosts today are Steve Foster, Chief Executive Officer and President; and Steven Van Dick, Chief Financial Officer. Mr. Foster and Mr. results XXXX, for update. and present ended third will XX, September provide Dick of the operations quarter Van a corporate press Relations results available the website, release today A is and www.tenonmed.com. was on of section released Investor our company's the detailing

begin estimates would to Before forward-looking. that be and that other the remind webcast and presentation, the considered on information made call formal may everyone I we like statements include predictions, might

they are these to what holds, While statements the that uncertainties current represent differ results to on judgment subject could forward-looking our actual and risks future cause materially.

not undue reflect the You to are statements, as of forward-looking date on which cautioned opinions of only place reliance presentation. these this our

of mind not discussion, forward-looking we may are these some affect our in new revise statements our obligating in keep relating light or attempt that or will that important today's revision the Throughout any factors future events. to of to to Please present results to information we ourselves publicly predictions. release business

should the also factors particularly our risks, a for other and of prospectus under complete recent discussion Risk more these Factors. You heading most review

go this sir. turn time, over Please call Tenon Chief At Executive Foster. Steve the Medical's Officer, to I'll ahead,

Steven Foster

public everyone. I'm execute milestone commercial year and today's System. for you, refined to and afternoon with and IPO, and joint continues the we be on surgical mission chronic million closed for a to SI call our deliver that us XXXX providing Joint company conservative to quarter, a good plans positioning patients Fusion of Thank to funds quarter for option welcome a our fail our you conference Cynthia, care. in Previously, transitioning to pain XXXX our a second the Catamaran update pleased sacroiliac support necessary $XX on to for third corporate results financial Tenon commercialization to Medical. organization,

quarter This in sales building Moving and ramped of our into efforts significantly team. beyond, well will the into launch XXXX the other and remainder technology quarter Catamaran attendance have of continue Subsequent commercialization Chicago. at most the we and our care the end to X,XXX third American for our we meeting. and at specialists professionals There, national Society full recently, the held completed in Spine of in spinal we health introduced to meeting the over XXXX. North

interactive at more At Session. its learned about the from had experience novel hands-on exhibit, physicians Technology event, outcomes had approach, center multiple professionals invited we the hosted technical health Innovative an Catamaran where a and care workshops single Catamaran presented transfixing for and with technical hands-on

ability SI physicians quantity have to continue target do Catamaran these experience procedures physicians We will acceleration model anticipate an technologies. a the trained to workshops been physician. as in completed significant in the the with synthetic trainer deliver We in hosted of train design date, To and we've efficient XX and very so locally a Tenon who of on has surgical workshops. to or SI for manner have

community. critical distribution commercial as of control Taken workshops, highly showcasing This feedback from the company. at ongoing we focused and where together, transition are sales momentum infrastructure our clinician story to we step is are sales building receiving we unique team and hands-on our commercial Tenon commercial our and the all for in conferences activity highly positive a management outreach develop on and

to distribution national line recently As investment disclosed, top allow agreement, accelerated support commercial our growth. we will which restructured

enrolling Catamaran of begin post-market study clinical Clinical announced X and studies respective separate centers recruiting our to Research the allows Catamaran. Review IRB recently approval by Institutional We Turning us, WCG WCG to represents which approval milestone into Tenon-sponsored The studies. time a from Board for for patients line. designated

and treated with feasibility our of sacroiliac XX States. assess to XX the with patient CT studies outcomes sites and system. patients the Catamaran well and Feasibility pain will to up scores, out patient-reported on scan to is XX enroll degenerative in XX to sacroiliitis designed the up as months. report United post-market clinical across study The to other or is clinical study outcomes objective joint The patients disruptions fusion as

We are process currently with sites identifying the enrollment initiate and qualifying in clinical XXXX. in in QX plans these trials of to of

in promises our Early Catamaran option to to by customers continue the treat the results with physician the delivering system. from an procedures patients show SI encouraged increasing its number joint and issues. We the be debilitating utilizing and performance System providing the surgical of system enhanced their suffering OR on

synthetic pathway and our on of acceleration conferences our at outreach option, Looking we the of events. model and addition commercialization training ahead our anticipate further workshop

I'll our discuss Dick, that, to to turn Financial our Mr. Van Chief Officer, it With financials. over

Steven Van Dick

Steve. compared XXX% X System to I'll $XXX,XXX full of the September for procedures XXXX. and period. $XX,XXX a release of in was XXX% due that combined the April in ago from financial and the the of through XXXX, to The XXXX, that Catamaran our give succinct due crossed regulatory respectively, is revenue July of in period to lower compared effect number was months of the increase with the in XXX%, Thanks, surgical procedure in the September was the was results. the the which in ended review and this sales XXXX. increase XX, X available per distribution XXXX X comparable in year A national for increases an September XX, ended $XXX,XXX third months revenue primarily Revenue in ending a months used, agreement breakdown increase X filings XXXX, press the $XXX,XXX the of Revenue of to $XXX,XXX afternoon. in was the our XX, quarter wire an

costs $XX,XXX restated resulted in number the offset ago overhead The procedures. agreement. to for and months loss spending September quarter totaled per increase XXXX, and increases the operating higher gross Gross period XXXX of margin the which compared spending loss to to ended operations year compared higher surgical the X a million decreased the stock-based of operating associated XX%, national loss XX, was by a of with third and quarter compensation an being expense for in Gross comparable the $X.X $XX,XXX quarter revenue quarter driven distribution partially the the due third company. of percentage a of by profit losses negative in procedure, loss to XXXX. creation from amended an overhead XX% support again, same $X.X operations of in from public compared the of revenue growth, and in result Net a million to of a the million expenses for infrastructure million $X.X to The third was of of XXXX. XXXX $X.X of

Tenon and XXXX, clinician company As fund personnel clinical short-term activities XX, believes cash and cash, and training investments $XX.X a cash, cash totaled of equivalents create to investments commercial will additional activities, study September organization, as and enable million. short-term development. existing product sales including as sales marketing hiring to The well and equivalents

turn will I the now closing call back for Steve thoughts. to

Steven Foster

summary, we are In create Steve. to our believe to positioned long-term shareholders. for you, well we value continue Thank

to for national the proprietary we implant Catamaran surgical feedback, infusion surgery corresponding With outcomes. commercialization is optimistic of and which fixation launch system, FDA-cleared and SI the joint optimize designed positive are our of ongoing very

clinical the of physicians our to commercial new to and the into one, clinical our our three, look our as year, management Joint two, optimized the technology. educating infrastructure commercialization reinforces surgical develop and look following: team in distinct providing commercial we outreach; introducing on our ramp and scale our and in XXXX close sales forward Fusion; approach we of and quarters for that build-out with are the further this focused SI delivering we As study updates research order I promise to shareholders subsequent data.

I question-and-answer so can session. attending, and over thank into you a would for the like back to Cynthia? all call the to get I operator we hand

Operator

question [Operator Jackson first will with Company. The Instructions] from Benchmark We take our Bruce

Bruce Jackson

-- So of your just to significant at was NASS were wondering you recap us of of had what made place, presentations if took could and then by the a physicians. some the fairly some for was the the KOLs this I that that that year. activities presence by the some response you

Steven Foster

slowdowns a I'd Bruce. Spine so. to over happy North the sort has American be the companies years. from and do robust. things meeting and visiting like booth was the various after the meeting emerging sessions, on spine We been Thanks the bellwether floor, Listen, critical They, presence of that for post-pandemic a very had a of nature. didactic activity, cetera. people The meeting et all a a are question, Society for others, of lot

and a in evening really in the Really also full-boat our synthetic engagement. to going and dinner with through We an brought how questions able setting surgeons hour of physicians faculty, experienced earlier, I spend time fluoroscopy sequence opportunity, were all this of excellent the before C-arm maybe that review where works. models the a mentioned equipment ask evening technology, to quiet instrumentation, to workshops workshops, have good

And Michael presented Chaparro an XX-patient alpha series then single series finally, site. a Dr. cases his Florida West Beach, from of with Palm in Catamarans,

data early from trial scores multicenter those experience comes of forward done we the get the forward. to can bring really important this on technology. fixating initiating earlier impressive that imaging showed as the And a feasibility well to as and is setting look and an I going for experiences the really It promise our So when Catamaran pain but that reinforces post-op job it clear the join appropriate up mentioned results fusion. to report

Bruce Jackson

agreement coincided the SpineSource. NASS with the then with of that Okay. new Great. And was other a thing announcement

So in for on what could the us force, still how fourth then tell -- work special going plan sales the what's new you quarter? in responsibilities maybe the SpineSource? charge And and transition terms the you do about a of taking to are

Steven Foster

We'll do.

a a chose SpineSource, had, that restructure mutually as public So partner, the we a to distributor company. national agreement we legacy agreement

to manner, sales put this field. did and so with want we way better an personnel move and for in and work on that and was clinical our the with course, to continue the that date. distributors created it It presence extremely restructure we'll build to to of specialists was be us in and here SpineSource with thing momentum out to amicable the together. to was we've expansion aggressive forward our managers mutually We sales investments agreed Of

role our commercialization sales so be building from out to their activities, training teams. across everything And will curriculum

manner. that right to sure agreements, things everything from done to an effective Of now, efficient and contracts course, we're make transitioning nature, SpineSource distribution of just agreements in is Tenon

efforts There'll Bruce. our forward, be going a part big of

from and relatively distributors independent resources move we'll SpineSource imagine, a into can a we as an a you very important remainder as that of small XXXX. expand, of of group out to the of number much will that. build part part be we larger And and big As XXXX

Steven Van Dick

just the... with Bruce,

Bruce Jackson

That's right. great. ahead. All Go

Steven Van Dick

definitely the $X future pay. the accrue the SpineSource as well million or Yes, that the commissions charge, upfront read of that as Bruce, renegotiate -- the on that this agreement and yes, to that to accounting to we will require made our for charged accepted in going accounting we've still general feel payment transaction, to the quarter fourth our are terms we principle commissions liability upfront reduce be the is commissions earned. agreed The we as the as those

to plan the outlined. quarter So agreement of million but be charge on those, we then recognize $X.X be of charges taking well consulting services those charges fourth services this Steve taking in as some rendered. there'll restructuring expensed do in the that for We'll the be are a as on as the will transition services the

Bruce Jackson

right? those And charges, noncash some of are

Steven Van Dick

$X.X all Yes. doesn't a I until out noncash get because paid will be million the mean is commission These hit revenue the be earned. original cash will charges.

Bruce Jackson

during progress the all on quarter. the Congratulations

Steven Foster

Thank you, Bruce.

Steven Van Dick

Bruce. Thanks,

Operator

question-and-answer today's conference And additional Foster, I'll conclude any back turn that Mr. this closing will you the remarks. for or to session. time, at

Steven Foster

term, just be commercial imagine, for a that's clinical time can really exciting after at call. kicking for is our Tenon, us excited in you appreciation the our about product. everyone we'll format, research the results joined here in excited everyone bring short This the future want express et quarters. to to to launching cetera, very I off restructuring who as We're and

With Cynthia. wrap think that, up, we'll I it

Operator

Thank This may for you, your disconnect. concludes sir. now you today's participation, and you call. Thank

Tenon Medical (TNON) 10 Nov 222022 Q3 Earnings call transcript