Tenon Medical, Inc. - What You Need to Know

Thinking about investing in Tenon Medical? Before you put your hard-earned money down, let’s break down what this company does in plain English.

Disclaimer: I am an AI, not a financial advisor. Investing in small companies is risky. Always do your own research or talk to a professional before investing.

1. What does this company do?

Tenon Medical makes medical devices to fix chronic lower back pain. They focus on the sacroiliac (SI) joint, which connects your lower spine to your pelvis.

They offer two main systems:

• The Catamaran™ System: Their original, less invasive approach using a single titanium implant.
• The SImmetry+® System: Acquired in August 2025, this uses a side-approach with 3D-printed implants to help the joint fuse better.

2. How do they make money and are they growing?

They make money by selling surgical kits to hospitals and surgery centers. These kits include the implants and tools surgeons need. The company is still in the "early commercialization" stage. They currently lose money and have a growing pile of debt.

They hope to grow by training more surgeons to use their tools and expanding their sales team. They are also funding clinical studies to prove their systems work, which is necessary to get insurance companies to pay for the procedures.

3. What’s the "Big Picture" opportunity?

Tenon believes the SI joint is the last major part of the spine industry that needs a better solution. They estimate that 15% to 30% of chronic lower back pain comes from the SI joint. Currently, only 5–7% of those patients get surgery. Tenon wants to capture this market with their standardized, less invasive tools.

4. What’s happening with this new offering?

Tenon is raising cash by selling a mix of stock and "warrants."

• The Warrants: These are "coupons" that let you buy more stock later at a set price. Important: There is no public market for these. You likely cannot sell them to anyone else, so be prepared to hold them forever.
• Where the money goes: They aim to raise $3.5 million. They will use $445,000 to pay off debt. The rest will fund daily operations, hire sales staff, train surgeons, and pay for research.
• The "Best Efforts" Risk: The underwriter does not have to sell a specific number of shares. If they don't hit the $3.5 million goal, the company might need to find more expensive ways to get cash.
• Immediate Dilution: If you buy in at $0.6021 per share, you are paying much more than the company’s current value per share. You will face an immediate "dilution" of $0.488 per share. This means more shares are being issued, which reduces your ownership percentage.

5. What are the main risks?

• The Delisting Threat: Nasdaq may require companies to maintain a market value of at least $5 million. If Tenon falls below this, they could be kicked off the exchange. This would make it much harder to buy or sell your shares.
• Management Discretion: Management can spend the money they raise however they choose. They might change their strategy in ways you don't expect or like.
• Volatility: Few people trade this stock. This makes it hard to buy or sell quickly without causing big swings in the share price.
• Dependence on Key Personnel: Success depends on keeping the managers and salespeople who have relationships with surgeons and hospitals.

Final thought for a friend: This is a speculative investment. The company is trying to solve a massive problem, but their finances are fragile. Between the risk of being kicked off the Nasdaq and the fact that the warrants are hard to trade, this is a high-risk scenario. Only invest money you are truly comfortable losing.