Tenon Medical repays convertible notes ahead of September 11 maturity

Tenon Medical, Inc. announced on September 9, 2026, that it had repaid in full its outstanding original issue discount senior convertible promissory notes ahead of their September 11, 2026 maturity date. The notes were issued on March 11, 2026, with an aggregate principal balance of approximately $5.16 million. The release was attached as Exhibit 99.1 to a Form 8-K filed the same day.

Why the company repaid early

The company describes the repayment as a proactive step to strengthen its balance sheet. It also says the repayment removes the possibility that the notes would convert into shares of common stock at a discount to market prices. Chief Executive Officer Steven M. Foster said in the release: "We believe repaying the Notes ahead of maturity is an important step forward for Tenon as we continue to build momentum across our business." He added that the company is reducing potential dilution for shareholders and keeping more flexibility to invest in commercialization.

The release says the company believes its strengthened capital position gives it financial flexibility to support its commercial initiatives and growth strategy. With the note obligations addressed, it says the company can focus on its commercial plans and on expanding adoption of its technologies.

The notes and the parties

The release does not state the interest rate, the conversion price or any security or covenant terms of the notes. It also does not name the noteholders, the trustee, any placement agent or any other agent for the notes. The release does not give the total cash paid to retire the notes, beyond the approximately $5.16 million principal balance.

About the company

Tenon Medical, Inc. is a medical device company dedicated to transforming care for patients with certain sacro-pelvic disorders. It was incorporated in Delaware in 2012 and offers two systems to treat a diseased sacroiliac joint. The Catamaran SI Joint Fusion System uses a single titanium implant in a less invasive approach to the SI joint. In August 2025, the company acquired substantially all of the assets of SiVantage, Inc. and SIMPL Medical, LLC, including the SImmetry+ SI Joint Fusion System, which uses a minimally invasive lateral access solution. The company says it is focused on three commercial opportunities: primary SI Joint procedures, revision procedures of failed SI Joint implants, and SI Joint fusion adjunct to a spine fusion construct.

Recent financial position

The financial data attached to the filing come from the company's annual report on Form 10-K filed March 27, 2026. For fiscal 2025, Tenon reported revenue of $3.9 million, against $3.3 million for 2024. Research and development expense was $2.1 million in 2025 and $2.6 million in 2024. The net loss was $12.6 million for 2025, against $13.7 million for 2024. Cash from operations was negative $10.7 million in 2025 and negative $9.9 million in 2024.

Year-end cash and cash equivalents were $3.8 million for the year ended December 31, 2025, and $6.5 million for 2024. The most recent figure in the financial data is cash and cash equivalents of $1.7 million at June 30, 2026, taken from a 10-Q.

The risks ahead

The notes are paid, but the release says nothing about how the company funded the repayment, and cash and cash equivalents were $1.7 million at June 30, 2026. The company reported a net loss of $12.6 million and cash from operations of negative $10.7 million for 2025. Its forward-looking statements list the ability to continue as a going concern, regaining and keeping Nasdaq listing compliance, and raising more capital on acceptable terms or at all as risks. The company says it will focus on commercial plans and wider adoption of its products. The release gives no further financing plans or dates.

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