Treace Medical Concepts Files 10-Q

TL;DR

Treace Medical Concepts 10-Q filed. Financials updated, including credit facilities and lease liabilities.

AI Summary

Treace Medical Concepts, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported on its financial position, including details on its revolving credit facility and term loans. Key financial data points and disclosures related to fair value measurements and operating lease liabilities were also included in the filing.

Why It Matters

This filing provides investors and stakeholders with an update on Treace Medical Concepts' financial health and operational status as of Q2 2024.

Risk Assessment

Risk Level: medium — The filing contains standard financial disclosures for a public company, but the nature of the medical device industry and the company's specific financial instruments warrant a medium risk assessment.

Key Numbers

• 2024-06-30 — Reporting Date (End of the fiscal quarter for which the report is filed.)
• 2024-08-06 — Filing Date (Date the 10-Q was officially submitted to the SEC.)
• 1231 — Fiscal Year End (Indicates the company's fiscal year concludes on December 31st.)

Key Players & Entities

• TREACE MEDICAL CONCEPTS, INC. (company) — Filer
• 0000950170-24-091787 (other) — Accession Number
• 20240630 (date) — Period of Report
• 20240806 (date) — Filing Date
• PONTE VEDRA, FL 32081 (location) — Business Address
• us-gaap:RevolvingCreditFacilityMember (financial_instrument) — Financial Disclosure
• tmci:TermLoansMember (financial_instrument) — Financial Disclosure

FAQ

Key Financial Figures

• $0.001 — nge on which registered Common stock, $0.001 par value TMCI The Nasdaq Global Se

Filing Documents

• tmci-20240630.htm (10-Q) — 1537KB
• tmci-ex31_1.htm (EX-31.1) — 12KB
• tmci-ex31_2.htm (EX-31.2) — 13KB
• tmci-ex32_1.htm (EX-32.1) — 8KB
• tmci-ex32_2.htm (EX-32.2) — 8KB
• 0000950170-24-091787.txt ( ) — 6710KB
• tmci-20240630.xsd (EX-101.SCH) — 1045KB
• tmci-20240630_htm.xml (XML) — 1174KB

: Financial Information

Part I: Financial Information Item 1. Condensed Financial Statements 3 Condensed Balance Sheets 3 Condensed Statements of Operations and Comprehensive Loss 4 Condensed Statements of Stockholders' Equity (Deficit) 5 Condensed Statements of Cash Flows 6 Notes to Condensed Financial Statements 7 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 25 Item 4.

Controls and Procedures

Controls and Procedures 25

: Other Information

Part II: Other Information Item 1.

Legal Proceedings

Legal Proceedings 27 Item 1A.

Risk Factors

Risk Factors 27 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 27 Item 3. Defaults Upon Senior Securities 27 Item 4. Mine Safety Disclosures 27 Item 5. Other Information 27 Item 6. Exhibits 27

Signatures

Signatures 28 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS As used in this Quarterly Report on Form 10-Q ("Quarterly Report"), unless expressly indicated or the context otherwise requires, references to "Treace Medical Concepts," "we," "us," "our," or the "Company," refer to Treace Medical Concepts, Inc. This Quarterly Report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as codified in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") concerning 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. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "anticipate," "assume," "believe," "contemplate," "continue," "could," "due," "estimate," "expect," "goal," "intend," "may," "objective," "plan," "predict," "potential," "positioned," "seek," "should," "slated," "target," "will," "would" and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology. These forward-looking statements include, but are not limited to, statements about: the expected use of our products by physicians; the expected growth of our business and our organization; the extensive competition in our industry and new product introductions from other industry participants, both in the Lapidus market and the minimally invasive osteotomy market; our ability to effectively respond to and mitigate the impact of challenges in the current market environment, including in response to increased competition; the anticipated pace of g

—FINANCI AL INFORMATION

PART I—FINANCI AL INFORMATION

Condensed Financial Sta tements

Item 1. Condensed Financial Sta tements. TREACE MEDICAL CONCEPTS, INC. Condensed Bal ance Sheets (in thousands, except share and per share amounts) (unaudited) June 30, December 31, 2024 2023 Assets Current assets Cash and cash equivalents $ 18,181 $ 12,982 Marketable securities, short-term 76,865 110,216 Accounts receivable, net of allowance for credit losses of $ 978 and $ 980 as of June 30, 2024 and December 31, 2023, respectively 25,559 38,063 Inventories 41,279 29,245 Prepaid expenses and other current assets 9,668 7,853 Total current assets 171,552 198,359 Property and equipment, net 24,245 22,298 Intangible assets, net of accumulated amortization of $ 950 and $ 475 as of June 30, 2024 and December 31, 2023, respectively 8,550 9,025 Goodwill 12,815 12,815 Operating lease right-of-use assets 8,775 9,264 Other non-current assets 146 146 Total assets $ 226,083 $ 251,907 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 18,073 $ 11,835 Accrued liabilities 13,730 10,458 Accrued commissions 5,931 10,759 Accrued compensation 6,192 7,549 Other liabilities 520 4,432 Total current liabilities 44,446 45,033 Long-term debt, net of discount of $ 843 and $ 992 as of June 30, 2024 and December 31, 2023, respectively 53,157 53,008 Operating lease liabilities, net of current portion 16,302 15,891 Other long-term liabilities 37 37 Total liabilities 113,942 113,969 Commitments and contingencies (Note 7) Stockholders' equity Preferred stock, $ 0.001 par value, 5,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 0 shares issued and outstanding as of June 30, 2024 and December 31, 2023 — — Common stock, $ 0.001 par value, 300,000,000 shares authorized; 62,194,845 and 61,749,654 issued, and 62,175,241 and 61,749,654 outstanding as of June 30, 2024 and December 3