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UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

 

Tenon Medical, Inc. (“Tenon”) is providing the following unaudited pro forma condensed combined financial information to reflect the acquisition of substantially all of the assets of SiVantage, Inc (“SiVantage”) on August 1, 2025. The pro forma financial information has been prepared in accordance with Regulation S-X Article 11, Pro Forma Financial Information, as amended. The pro forma adjustments are described in the accompanying footnotes.

 

The unaudited pro forma condensed balance sheet gives effect to the acquisition as if it had occurred on June 30, 2025. The unaudited pro forma condensed statement of operations for the year ended December 31, 2024 gives effect to the acquisition as if it had occurred on January 1, 2024 and the unaudited pro forma condensed statement of operations for the six months ended June 30, 2025 also gives effect to the acquisition as if it had occurred on January 1, 2024.

 

The unaudited pro forma condensed financial information was derived from and should be read in conjunction with the audited financial statements of Tenon for the year ended December 31, 2024 and the unaudited condensed financial statements of Tenon as of and for the six months ended June 30, 2025.

 

The unaudited pro forma condensed financial information is presented for informational purposes only. The pro forma information is not necessarily indicative of what the financial position or results of operations actually would have been had the acquisition been completed at the dates indicated. In addition, the unaudited pro forma condensed consolidated financial information does not purport to project the future financial position or operating results of Tenon after completion of the acquisition.

 

 

 

 

Unaudited Pro Forma Condensed Balance Sheet

as of June 30, 2025 (in thousands, except share and per share data)

 

   Tenon   SiVantage   Adjustments      Pro Forma 
ASSETS                   
Current assets:                       
Cash and cash equivalents  $7,846   $—   $(750)  a  $7,096 
Accounts receivable   770    —    —       770 
Inventory   688    61    —       749 
Prepaid expenses and other assets   580    18    —       598 
Total current assets   9,884    79    (750)      9,213 
Property and equipment, net   842    131    —       973 
Intangible assets, net   —    —    469   b   469 
Deposits   51    —    —       51 
Operating lease right-of-use assets   268    —    —       268 
Deferred offering costs   69    —    —       69 
Goodwill   —    —    2,705   b   2,705 
TOTAL ASSETS  $11,114   $210   $2,424      $13,748 
                        
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)                       
Current liabilities:                       
Accounts payable  $894   $—   $—      $894 
Accrued expenses   1,108    —    —       1,108 
Current portion of accrued commissions   271    —    —       271 
Deferred revenue   —    258    —       258 
Current portion of operating lease liability   290    —    —       290 
Total current liabilities   2,563    258    —       2,821 
Accrued commissions, LT   1,838    —    —       1,838 
Contingent liabilities   —    —    1,339   c   1,339 
Total liabilities   4,401    258    1,339       5,998 
Stockholders’ equity (deficit):                       
Series A convertible preferred stock   3,300    —    —       3,300 
Series B convertible preferred stock   452    —    —       452 
Common stock   8    —    —       8 
Additional paid-in capital   78,084    —    1,037   a   79,121 
Accumulated deficit   (75,131)   (48)   48       (75,131)
Total stockholders’ equity (deficit)   6,713    (48)   1,085       7,750 
Total liabilities, preferred stock and stockholders’ equity (deficit)  $11,114   $210   $2,424      $13,748 

 

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Notes to Unaudited Pro Forma Condensed Balance Sheet as of June 30, 2025

 

aReflects the cash consideration of $750 and equity of $1,037 paid to SiVantage upon the closing of the acquisition.

 

bReflects the amounts allocated to goodwill and definite-lived intangible assets per the preliminary ASC 805 analysis prepared by an independent third-party valuation specialist.

 

cReflects the fair value of contingent consideration due to SiVantage upon the completion of certain milestones.

 

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Unaudited Pro Forma Condensed Statement of Operations

for the Year ended December 31, 2024 (in thousands, except per share data)

 

   Tenon   SiVantage   Adjustments      Pro Forma 
Revenue:                   
Revenue  $3,277   $1,039   $    —      $4,316 
Cost of sales   1,566    324    (60)  b   1,830 
Gross profit   1,711    715    60       2,486 
                        
Operating expenses:                       
Research and development   2,603    481    —       3,084 
Sales and marketing   5,109    1,060    (33)  b   6,136 
General and administrative   7,765    691    54   a   8,510 
Total operating expenses   15,477    2,232    21       17,730 
Loss from operations   (13,766)   (1,517)   39       (15,244)
                        
Total other income (expense), net   93    (1)   —       92 
Net loss  $(13,673)  $(1,518)  $39      $(15,152)
                        
Basic and diluted net loss per share:                       
Basic and diluted net loss per share  $(11.26)               $(7.88)
Net loss per share  $(11.26)               $(7.88)
Shares used in per share computation:                       
Basic and diluted   1,214         710   c   1,924 

 

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Notes to Unaudited Pro Forma Condensed Statement of Operations for the Year ended December 31, 2024

 

aReflects the amortization of definite-lived intangible assets.

 

bReflects elimination of depreciation and amortization of SiVantage assets.

 

cReflects the effect of the 710,300 shares of common stock issued on the weighted average shares outstanding for the period. The adjusted weighted average shares outstanding is then used to calculate the pro forma consolidated basic and diluted net loss per share.

 

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Unaudited Pro Forma Condensed Statement of Operations

for the Six Months ended June 30, 2025 (in thousands, except per share data)

 

   Tenon   SiVantage   Adjustments     Pro Forma 
Revenue:                  
Revenue  $1,290   $773   $—      $2,063 
Cost of sales   722    123    (30)  c   815 
Gross profit   568    650    30      1,248 
                        
Operating expenses:                       
Research and development   1,194    240    —       1,434 
Sales and marketing   2,766    820    (17)  c   3,569 
General and administrative   3,142    586    27   a   3,696 
              (50)  b     
              (9)  c     
Total operating expenses   7,102    1,646    (49)      8,699 
Loss from operations   (6,534)   (996)   79       (7,451)
                        
Total other income (expense), net   149    1    —       150 
Net loss  $(6,385)  $(995)  $79      $(7,301)
                        
Basic and diluted net loss per share:                       
Basic and diluted net loss per share  $(1.14)               $(1.16)
Net loss per share  $(1.14)               $(1.16)
Shares used in per share computation:                       
Basic and diluted   5,605         710   d   6,315 

 

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Notes to Unaudited Pro Forma Condensed Statement of Operations for the Six Months ended June 30, 2025

 

aReflects the amortization of definite-lived intangible assets.

 

bReflects transaction expenses incurred by SiVantage.

 

cReflects elimination of depreciation and amortization of SiVantage assets.

 

d

Reflects the effect of the 710,300 shares of common stock issued on the weighted average shares outstanding for the period. The adjusted weighted average shares outstanding is then used to calculate the pro forma consolidated basic and diluted net loss per share.

 

 

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