Tenon Medical, Inc.

Greetings and welcome to the Tenant Medical Third Quarter 2025 Financial Results and Corporate Update Conference Call. As a reminder, this call is being recorded. Your hosts today are Steve Foster, President and Chief Executive Officer, and Kevin Williamson, Chief Financial Officer. Mr. Foster and Mr. Williamson will present results of operations for the third quarter ended September 30th, 2025 and provide a corporate update. A press release detailing these results was released today and is available on the investor relations section of our company's website at www.10inmed.com. Before we begin the formal presentation, I'd like to remind everyone that statements made on the call and webcast may include predictions, estimates, and other information that might be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as the date of this presentation. Please keep in mind we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. For a more complete discussion of these factors and other risks, you should review our quarterly and annual reports on file with the Securities and Exchange Commission at www.sec.gov. At this time, I'd like to turn the call over to Tenant Medical's Chief Executive Officer, Stephen Foster. Please go ahead, sir.

Thank you, Rob, and good afternoon, everyone.

I'm pleased to welcome you to today's third quarter 2025 financial results and corporate update conference call for Tenon Medical. The third quarter was a very exciting time for Tenon Medical in the first quarter where our progress is really showing true in our financial results. Our results demonstrate significant momentum in executing our strategic growth initiatives. We achieved record revenue of $1.2 million, a 32% increase compared to the same period last year. This performance was fueled by unprecedented catamaran procedure volumes, underscoring strong demand and growing adoption among physicians. Additionally, the integration of the SciVantage portfolio contributed meaningfully to our top-line growth, an early indication of what our portfolio expansion strategy can deliver. These results affirm the strength of our commercial execution and the increasing recognition of our differentiated solutions in the marketplace. As discussed during our second quarter earnings conference call, and in line with our commitment to advancing innovation and expanding our market presence, we completed a strategic asset acquisition of SciVantage's Symmetry and Symmetry Plus Sacroiliac Joint Fusion technologies during the third quarter. This transaction marks a pivotal milestone in our growth strategy, transforming Tenon into a multi-product, multi-approach company capable of addressing a broader spectrum of sacropelvic fixation and fusion needs. The Symmetry platform brings a well-established clinical foundation and a differentiated approach to fusion, complementing our existing catamaran system. Importantly, this acquisition has been immediately accretive to revenue and enhances our ability to serve a wider range of physicians and patients. We also welcome key members of the SciVantage leadership team, whose deep experience and expertise will be instrumental in accelerating our commercial execution and driving continued innovation. I'd like to quickly acknowledge the efforts of the newly combined team for efficiently coming together as one, aggressively completing integration activities, and delivering a strong quarter. Another key milestone this quarter was the full commercial launch of our Catamaran SE joint fusion system. which expands our implant portfolio and strengthens our competitive position in the sacroiliac joint fusion market. The Catamaran SE features a reduced profile, offering physicians greater flexibility when treating patients with smaller SI joint anatomy or performing revision procedures. This design enhancement supports a minimally invasive inferior posterior approach, It includes a proprietary instrument set with multiple drilling options catering to diverse surgical preferences. Backed by expanded inventories and field support bolstered by our recent SciVantage acquisition, we are well positioned to meet growing market demand. With over 1,000 catamaran devices implanted to date, The system continues to demonstrate strong clinical performance across a range of indications, including primary SI joint dysfunction, revision, and adjunctive applications in complex multilevel spine fusions. The successful transition from alpha testing to full launch reflects our commitment to innovation and our ability to execute with speed and precision. During the quarter, we were proud to share that the second peer-reviewed publication from our ongoing main sales study was released. This further validated the safety, efficacy, and durability of the catamaran SI joint fusion system. This prospective multi-center clinical trial evaluated patients, outcomes in patients with sacroiliac joint disruptions or degenerative sacroilitis treated with our catamaran implant. The 12-month data from the first 24 patients demonstrated statistically significant improvements in pain and disability scores. VAS scores dropped from 78.8 preoperatively to 23.0 postoperatively. And ODI scores improved from 51.6% to 20.8%. Notably, 83% of patients showed unequivocal evidence of fusion with bridging bone across the SI joint at 12 months CT, confirmed by independent radiographic review. The study also reported no serious adverse events, reoperations, or reinterventions, and 83% of patients expressed high satisfaction with their outcomes. These results reinforced the catamaran system's clinical value and support its role as a reliable, minimally invasive solution for SI joint dysfunction. As we continue to build our clinical evidence base, we believe these findings will be instrumental in driving broader adoption and payer coverage that supports our long-term growth. Subsequent to quarter end, we announced a major regulatory milestone with the FDA 510K clearance of our Symmetry Plus SI joint fusion system. This next generation platform builds on the proven foundation of the original symmetry system and introduces several key advancements, including 3D printed titanium implants, a robust joint decorticator, and a simplified bone graft delivery system. These enhancements are designed to support authentic arthrodesis through a minimally invasive lateral approach rooted in established orthopedic fusion principles. With this clearance, Tanon now offers two distinct minimally invasive surgical approaches, lateral and inferior posterior, through our Symmetry Plus and Catamaran systems, respectively. This multi-platform strategy significantly strengthens our competitive position and enables physicians to tailor treatment to individual patient anatomy and pathology. We're prepared for an alpha launch of Symmetry Plus in the coming weeks. A select group of physician users whose feedback will guide our broader market introduction, will be the first to use the technology. This milestone not only expands our portfolio, but also reinforces our commitment to delivering durable, clinically validated outcomes for patients suffering from sacroiliac joint dysfunction. Physician education remains a top priority. In the third quarter, we hosted 26 physicians in various 10-hour workshops, including critical peer-to-peer engagements. We ended the quarter with $3.4 million in cash and no debt. Subsequent to quarter end, we bolstered our cash position with a $2.85 million pipe financing, primarily consisting of investment from industry partners, giving us the flexibility to continue executing our strategic roadmap with confidence. Looking ahead, we remain focused on driving adoption across our expanded product portfolio and leveraging recent regulatory and clinical milestones to support commercial growth. With a strong foundation in place, we're confident in our ability to scale operations, deepen market penetration, and deliver continued value in the quarters to come. We are actively onboarding sales professionals to the Tenon commercial team through a strategic hybrid structure, and we're already seeing the momentum build into the fourth quarter, driven by the expansion of our commercial footprint and the increased horsepower of our sales organization.