Tenon Medical, Inc. - What You Need to Know

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

1. What does this company actually do?

Tenon Medical focuses on fixing chronic lower back pain caused by the sacroiliac (SI) joint—the area where your spine connects to your pelvis. When this joint becomes unstable or inflamed, it causes significant pain.

Tenon provides the "hardware" surgeons need for these procedures:

• The Catamaran™ System: A less invasive tool using a single titanium implant to fuse the joint.
• The SImmetry+® System: A system that uses a side approach to help achieve a true biological fusion of the joint.

Tenon believes many patients skip surgery because existing options are too complex. They aim to make these procedures simpler and more effective through specialized tools and implants.

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

Tenon makes money by selling surgical kits and implants to hospitals and surgery centers. They are currently in a "growth phase," which means they are losing money while investing heavily in sales teams, surgeon training, and clinical marketing.

They are targeting a large, underserved market. They estimate that 15% to 30% of all chronic lower back pain comes from the SI joint. Currently, only a small fraction of these patients receive a surgical solution. Their growth depends entirely on their ability to convince more orthopedic and neurosurgeons to switch to the SImmetry system.

3. What is this new offering about?

Tenon is raising money by selling "units" for $0.38 each. Each unit includes one share of stock and one warrant to buy another share later.

Important details to know:

• Best Efforts Offering: The company is using an agent to sell these units, but there is no guarantee they will sell all of them. They might raise much less money than they hope.
• No Dividends: The company has never paid a profit-sharing check to investors and does not plan to do so. You only make money if the stock price goes up.
• Ownership Limits: The warrants have a "beneficial ownership limitation" of 4.99% or 9.99%. You cannot use your warrants if it would push your total ownership of the company above these limits.
• Limited Liquidity: The stock trades on the Nasdaq under "TNON," but the warrants do not trade on any exchange. This makes the warrants very difficult to sell.
• Legal Hurdles: You must bring most legal disputes in New York courts, which could make it more expensive and difficult to pursue legal claims.

4. What are the main risks?

Investing in a small medical device company is high-risk. Key factors include:

• Operating Losses: The company consistently loses money. There is no guarantee they will ever become profitable.
• Heavy Competition: They compete against giants like Medtronic and Stryker, who have significantly more money, technology, and marketing power.
• Dilution: Issuing new shares and warrants means more shares exist. This reduces your ownership percentage and voting power.
• Nasdaq Listing Issues: Tenon is not meeting Nasdaq’s minimum price rules. As of February 2026, the stock price fell below the $1.00 minimum. They have until August 24, 2026, to fix this. If they fail, they could be delisted, making the stock much harder to trade.
• Insider Lock-ups: Directors and executives cannot sell their shares for 60 days after the offering. Once this period ends, they may sell their shares, which could put downward pressure on the stock price.

How to make your final decision

Before you invest, ask yourself:

1. Can I afford to lose this money? This is a speculative, high-risk investment.
2. Do I believe in their tech? Their success depends on surgeons choosing their tools over those of much larger, established competitors.
3. Have I read the official documents? Never rely solely on summaries. Search for the "Prospectus" on the SEC’s EDGAR website to see the full, unfiltered details provided by the company.

Disclaimer: I am an AI, not a financial advisor. This information is for educational purposes only and does not constitute financial advice. Always perform your own due diligence.