Tactile Systems Technology, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Tactile Systems Technology, Inc. has filed its 2023 annual report (10-K) detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

TACTILE SYSTEMS TECHNOLOGY INC (TCMD) filed a Annual Report (10-K) with the SEC on February 20, 2024. Tactile Systems Technology, Inc. filed its 2023 Form 10-K on February 20, 2024. The filing covers the fiscal year ending December 31, 2023. The company is incorporated in Delaware and headquartered in Minneapolis, MN. The SIC code for the company is 3841 (Surgical & Medical Instruments & Apparatus). The filing includes details on various equity incentive plans and stock options.

Why It Matters

For investors and stakeholders tracking TACTILE SYSTEMS TECHNOLOGY INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Tactile Systems Technology's financial health, operational strategies, and risk factors for the past fiscal year, crucial for investors and stakeholders to assess the company's performance and future outlook. The detailed financial data and disclosures within the 10-K are essential for understanding the company's revenue streams, profitability, debt levels, and executive compensation, enabling informed investment decisions.

Risk Assessment

Risk Level: medium — TACTILE SYSTEMS TECHNOLOGY INC shows moderate risk based on this filing. The company operates in the medical device industry, which is subject to stringent regulatory oversight and market competition, as indicated by its SIC code and the nature of its business.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess the company's growth prospects and potential challenges in the medical device market.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period covered by the 10-K)
• 2024-02-20 — Filing Date (Date the 10-K was filed)
• 001-37799 — SEC File Number (SEC file number for the company)
• 0001027838 — Central Index Key (Company's Central Index Key)

Key Players & Entities

• TACTILE SYSTEMS TECHNOLOGY INC (company) — Filer name
• TCMD (company) — Ticker symbol
• 10-K (document) — Filing type
• 2024-02-20 (date) — Filing date
• 2023-12-31 (date) — Fiscal year end
• MINNEAPOLIS (location) — Business address city
• DE (location) — State of incorporation
• 3841 (industry) — Standard Industrial Classification

FAQ

Industry Context

Tactile Systems Technology, Inc. operates within the medical device industry, specifically focusing on devices for treating neurological and orthopedic conditions.

Regulatory Implications

The medical device industry is subject to significant regulatory oversight from bodies like the FDA, impacting product development, manufacturing, and marketing.

What Investors Should Do

1. Review the full 10-K filing for detailed financial statements and management's discussion and analysis.
2. Analyze the company's disclosed risk factors to understand potential challenges and their impact.
3. Compare the company's performance metrics with industry benchmarks and competitors.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-20: 10-K Filing Date — Date the annual report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing provided, so no comparison to a previous filing is available.

Key Financial Figures

• $0.001 — ch registered Common Stock, Par Value $0.001 Per Share TCMD The Nasdaq Stock Mar
• $24 — -affiliates of the registrant, based on $24.93, the closing price of the shares of
• $274.4 million — ember 31, 2023, we generated revenue of $274.4 million and had net income of $28.5 million. Ou
• $28.5 million — of $274.4 million and had net income of $28.5 million. Our revenue increased 11% during the y
• $241.7 m — ls of our lymphedema products generated $241.7 million, or 88%, of our revenue in 2023,
• $212.3 m — on, or 88%, of our revenue in 2023, and $212.3 million, or 86%, of our revenue in 2022.
• $32.7 m — s. The AffloVest product line generated $32.7 million, or 12%, of our revenue in 2023 a
• $34.5 m — ion, or 12%, of our revenue in 2023 and $34.5 million, or 14%, of our revenue in 2022.

Filing Documents

• tcmd-20231231x10k.htm (10-K) — 3175KB
• tcmd-20231231xex23d1.htm (EX-23.1) — 3KB
• tcmd-20231231xex31d1.htm (EX-31.1) — 21KB
• tcmd-20231231xex31d2.htm (EX-31.2) — 21KB
• tcmd-20231231xex32d1.htm (EX-32.1) — 9KB
• tcmd-20231231xex32d2.htm (EX-32.2) — 9KB
• tcmd-20231231xex97d1.htm (EX-97.1) — 32KB
• tcmd-20231231x10k005.jpg (GRAPHIC) — 20KB
• tcmd-20231231x10k006.jpg (GRAPHIC) — 58KB
• tcmd-20231231x10k007.jpg (GRAPHIC) — 50KB
• tcmd-20231231x10k008.jpg (GRAPHIC) — 48KB
• 0001558370-24-001330.txt (&nbsp;) — 12714KB
• tcmd-20231231.xsd (EX-101.SCH) — 66KB
• tcmd-20231231_cal.xml (EX-101.CAL) — 95KB
• tcmd-20231231_def.xml (EX-101.DEF) — 332KB
• tcmd-20231231_lab.xml (EX-101.LAB) — 602KB
• tcmd-20231231_pre.xml (EX-101.PRE) — 501KB
• tcmd-20231231x10k_htm.xml (XML) — 2319KB

Business

Business 5 Item 1A.

Risk Factors

Risk Factors 30 Item 1B. Unresolved Staff Comments 68 Item 1C. Cybersecurity 68 Item 2.

Properties

Properties 69 Item 3.

Legal Proceedings

Legal Proceedings 69 Item 4. Mine Safety Disclosures 69 PART II Item 5. Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 70 Item 6.

Selected Financial Data

Selected Financial Data 72 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 72 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 84 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 86 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 118 Item 9A.

Controls and Procedures

Controls and Procedures 118 Item 9B. Other Information 121 Item 9C . Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 121 PART III Item 10. Directors, Executive Officers and Corporate Governance 122 Item 11.

Executive Compensation

Executive Compensation 123 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 123 Item 13. Certain Relationships and Related Transactions, and Director Independence 123 Item 14. Principal Accountant Fees and Services 123 PART IV Item 15. Exhibits, Financial Statement Schedules 124 Item 16. Form 10-K Summary 128 i Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION This Annual Report on Form 10-K contains forward-looking statements regarding us, our business prospects and our results of operations that are subject to certain risks and uncertainties posed by many factors and events that could cause our actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those described in Part I, Item 1A. "Risk Factors" and elsewhere in this report. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. Readers are urged to carefully review and consider the various disclosures made by us in this report and in our other reports filed with the Securities and Exchange Commission, or the SEC, that advise interested parties of the risks and factors that may affect our business. All statements, other than statements of historical facts, contained in this Annual Report on Form 10-K, including statements regarding our business, operations and financial performance and condition, as well as our plans, objectives and expectations for our business, operations and financial performance and condition, are forward-looking statements. In some cases, you can identify forward-looking statements by the following words: "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "ongoing," "plan," "potential," "predict," "project," "should," "tar

Business

Item 1. Business. Overview Tactile Systems Technology, Inc. ("we," "us," and "our") is a medical technology company that develops and provides innovative medical devices for the treatment of underserved chronic diseases. We were originally incorporated in Minnesota under the name Tactile Systems Technology, Inc. on January 30, 1995. During 2006, we established a merger corporation and subsequently, on July 21, 2006, merged with and into this merger corporation resulting in us being reincorporated as a Delaware corporation. The resulting corporation assumed the name Tactile Systems Technology, Inc. and in September 2013, we began doing business as "Tactile Medical". Our mission is to help people suffering from chronic diseases live better and care for themselves at home. We focus our efforts on advancing the standard of care in treating underserved chronic diseases in the home to improve patient outcomes and quality of life and help control rising healthcare expenditures. Our areas of therapeutic focus are (1) vascular disease, with a goal of advancing the standard of care in treating lymphedema and chronic venous insufficiency, (2) oncology, where lymphedema is a common consequence among cancer survivors and (3) providing airway clearance therapy for those suffering from chronic respiratory conditions. We possess a unique, scalable platform to deliver at-home healthcare solutions throughout the United States. This evolving home care delivery model is recognized by policymakers and insurance payers as a key for controlling rising healthcare costs. Our solutions deliver cost-effective, clinically proven, long-term treatment for people with these chronic diseases. We generally employ a direct-to-patient and -provider model within our lymphedema portfolio, through which we obtain patient referrals from clinicians, manage insurance claims on behalf of our patients and their clinicians, deliver our solutions directly to patients and train them on the proper use of

View Full Filing

View this 10-K filing on SEC EDGAR