0001104659-26-125190 | 10-Q | XBRL Viewer

Going Concern	9 Months Ended
Sep. 30, 2026
Going Concern
Going Concern	(3) Going Concern The Company’s operations to date have focused on commercializing products, developing and acquiring technology and assets, business planning, raising capital and organization and staffing. The Company has incurred recurring losses and negative cash flows from operations since inception and has an accumulated deficit of $430.4 million as of September 30, 2026. The Company anticipates incurring additional losses until such time, if ever, it can generate sufficient revenue from its products to cover its expenses. Management has evaluated the Company's ability to continue as a going concern for the twelve-month period following the issuance date of these consolidated financial statements. The Company’s Credit Agreement with Perceptive (see Note 6, “Long-Term Debt”) requires compliance with certain financial covenants, including minimum revenue and liquidity thresholds. Management's current forecasts indicate it is probable that the Company will not achieve the minimum revenue threshold required under the Credit Agreement during the twelve-month period following the issuance of these consolidated financial statements. On September 28, 2026, the Company entered into a Limited Consent to Credit Agreement and Guaranty (the “Limited Consent”) with Perceptive, pursuant to the Limited Consent, the Consenting Lenders (as defined in the Limited Consent) agreed that the minimum revenue covenant will not be tested with respect to the fiscal quarters ending September 30, 2026 and December 31, 2026. If the Company fails to satisfy the applicable covenant requirements and does not obtain a waiver or amendment from Perceptive in the periods tested following December 31, 2026, the lender could declare an event of default and accelerate repayment of all outstanding principal and accrued interest under the Credit Agreement. The Company does not expect to have sufficient liquidity to repay such obligations if repayment were accelerated. In addition, projected compliance with the liquidity covenant is sensitive to changes in the assumptions of our operating forecast. The Company’s ability to maintain compliance with the liquidity covenant is dependent on its ability to grow revenue and manage its costs. The Company’s current operating plan includes measures to reduce our operating expenses. Inability to do so may result in an event of default in future periods. These conditions and events raise substantial doubt about the Company's ability to continue as a going concern within one year after the date these consolidated financial statements are issued. To address these conditions, management is evaluating and has pursued, and is continuing to pursue various actions, including seeking a waiver of, or amendment to, the applicable covenant requirements under the Credit Agreement, pursuing strategic initiatives intended to increase revenues, and implementing measures designed to reduce operating expenses. While management believes that such measures can be implemented, such actions would not eliminate the risk of noncompliance with the revenue covenant after the applicable waiver period. In addition, the Company’s ability to achieve the level of revenue growth necessary to comply with the covenant is dependent on future operating performance and other factors that are not entirely within management’s control. Accordingly, management has concluded that substantial doubt exists about the Company's ability to continue as a going concern within one year after the date these consolidated financial statements are issued. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern and do not include any adjustments that might result from the outcome of this uncertainty.

Going Concern

9 Months Ended

Sep. 30, 2026

(3) Going Concern

The Company’s operations to date have focused on commercializing products, developing and acquiring technology and assets, business planning, raising capital and organization and staffing. The Company has incurred recurring losses and negative cash flows from operations since inception and has an accumulated deficit of $430.4 million as of September 30, 2026. The Company anticipates incurring additional losses until such time, if ever, it can generate sufficient revenue from its products to cover its expenses.

Management has evaluated the Company's ability to continue as a going concern for the twelve-month period following the issuance date of these consolidated financial statements. The Company’s Credit Agreement with Perceptive (see Note 6, “Long-Term Debt”) requires compliance with certain financial covenants, including minimum revenue and liquidity thresholds. Management's current forecasts indicate it is probable that the Company will not achieve the minimum revenue threshold required under the Credit Agreement during the twelve-month period following the issuance of these consolidated financial statements. On September 28, 2026, the Company entered into a Limited Consent to Credit Agreement and Guaranty (the “Limited Consent”) with Perceptive, pursuant to the Limited Consent, the Consenting Lenders (as defined in the Limited Consent) agreed that the minimum revenue covenant will not be tested with respect to the fiscal quarters ending September 30, 2026 and December 31, 2026. If the Company fails to satisfy the applicable covenant requirements and does not obtain a waiver or amendment from Perceptive in the periods tested following December 31, 2026, the lender could declare an event of default and accelerate repayment of all outstanding principal and accrued interest under the Credit Agreement. The Company does not expect to have sufficient liquidity to repay such obligations if repayment were accelerated.

In addition, projected compliance with the liquidity covenant is sensitive to changes in the assumptions of our operating forecast. The Company’s ability to maintain compliance with the liquidity covenant is dependent on its ability to grow revenue and manage its costs. The Company’s current operating plan includes measures to reduce our operating expenses. Inability to do so may result in an event of default in future periods.

These conditions and events raise substantial doubt about the Company's ability to continue as a going concern within one year after the date these consolidated financial statements are issued.

To address these conditions, management is evaluating and has pursued, and is continuing to pursue various actions, including seeking a waiver of, or amendment to, the applicable covenant requirements under the Credit Agreement, pursuing strategic initiatives intended to increase revenues, and implementing measures designed to reduce operating expenses. While management believes that such measures can be implemented, such actions would not eliminate the risk of noncompliance with the revenue covenant after the applicable waiver period. In addition, the Company’s ability to achieve the level of revenue growth necessary to comply with the covenant is dependent on future operating performance and other factors that are not entirely within management’s control. Accordingly, management has concluded that substantial doubt exists about the Company's ability to continue as a going concern within one year after the date these consolidated financial statements are issued.

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern and do not include any adjustments that might result from the outcome of this uncertainty.

Risks and Liquidity	9 Months Ended
Sep. 30, 2026
Risks and Liquidity
Risks and Liquidity	(2) Risks and Liquidity The operations of the Company are subject to certain risks and uncertainties including, among others, the uncertainty of product development, the impact of macroeconomic conditions, including, general economic uncertainty, inflationary pressures and the measures undertaken by various governments to address them, banking instability, monetary policy changes, changes in trade policies (including tariffs and trade protection measures that have been or may in the future be imposed by the U.S. or other countries), geopolitical tensions or the outbreak of hostilities or war, cybersecurity events affecting or disrupting normal hospital operations, constraints on the supply of critical surgical and hospital supplies necessary to facilitate the surgical procedures in which the Company’s products are utilized, technological uncertainty, commercial acceptance of any developed products, alternative competing technologies, dependence on collaborative partners, uncertainty regarding patents and proprietary rights, comprehensive government regulations, and dependence on key personnel.

Risks and Liquidity

9 Months Ended

Sep. 30, 2026

Risks and Liquidity

Risks and Liquidity

(2) Risks and Liquidity

The operations of the Company are subject to certain risks and uncertainties including, among others, the uncertainty of product development, the impact of macroeconomic conditions, including, general economic uncertainty, inflationary pressures and the measures undertaken by various governments to address them, banking instability, monetary policy changes, changes in trade policies (including tariffs and trade protection measures that have been or may in the future be imposed by the U.S. or other countries), geopolitical tensions or the outbreak of hostilities or war, cybersecurity events affecting or disrupting normal hospital operations, constraints on the supply of critical surgical and hospital supplies necessary to facilitate the surgical procedures in which the Company’s products are utilized, technological uncertainty, commercial acceptance of any developed products, alternative competing technologies, dependence on collaborative partners, uncertainty regarding patents and proprietary rights, comprehensive government regulations, and dependence on key personnel.

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (d)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482907/825-10-50-21

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (d)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482907/825-10-50-21

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (c)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482907/825-10-50-21

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (c)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482907/825-10-50-21

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482907/825-10-50-21

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Topic 275
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 3A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482836/275-10-55-3A

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 275
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482861/275-10-50-2A

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 275
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482861/275-10-50-1

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 275
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/275/tableOfContent

+ Details

Sale of Product Line	9 Months Ended
Sep. 30, 2026
Sale of Product Line
Sale of Product Line	(8) Sale of Product Line In March 2024, the Company entered into an Asset Purchase Agreement (“APA”) with MiMedx Group, Inc. (“MDXG”) to sell certain assets (the “Transaction”) related to NIVIS Fibrillar Collagen Pack Device (“NIVIS”). These assets mainly included the Company’s existing inventory of NIVIS, with a net carrying value of $0.8 million, and certain intellectual property rights to sell NIVIS, with no carrying value. MDXG assumed the Company’s existing supply agreements, including the minimum obligations for NIVIS that the Company entered into in 2022 ahead of the initial sales of NIVIS. In exchange for entering into the Transaction, the Company received an initial $5.0 million upfront payment and was entitled to receive future revenue-sharing payments based on the net sales of NIVIS (now marketed as HELIOGEN) during the first two years following its launch by MDXG, which revenue-sharing payments would range from a minimum of $3.0 million to a maximum of $7.0 million in the aggregate. In addition, $0.4 million of consideration was received for existing NIVIS inventory on-hand. Any consideration in excess of $3.0 million up to $7.0 million was considered variable consideration that was fully constrained. The Company accounted for the Transaction as a sale of a nonfinancial asset group in accordance with ASC 610-20 and followed the principles of ASC 606 to determine the consideration of $8.4 million related to the Transaction which includes the consideration for the existing inventory. The Company transferred control of the nonfinancial asset group in March 2024 and upon closing recognized a gain of $7.6 million in the consolidated statement of operations and comprehensive loss during the three months ended March 31, 2024. The $8.4 million transaction price included the minimum revenue-share payment of $3.0 million, which was recorded as a receivable when the deal closed. Revenue-share payments commenced after the third quarter of 2024 and the remainder of the minimum revenue share payment was collected during the three months ended September 30, 2026. During the term of the revenue-sharing payment period, the Company assessed the constraint of variable consideration at each reporting date and no changes were made to the estimate of variable consideration.

Sale of Product Line

9 Months Ended

Sep. 30, 2026

Sale of Product Line

Sale of Product Line

(8) Sale of Product Line

In March 2024, the Company entered into an Asset Purchase Agreement (“APA”) with MiMedx Group, Inc. (“MDXG”) to sell certain assets (the “Transaction”) related to NIVIS Fibrillar Collagen Pack Device (“NIVIS”). These assets mainly included the Company’s existing inventory of NIVIS, with a net carrying value of $0.8 million, and certain intellectual property rights to sell NIVIS, with no carrying value. MDXG assumed the Company’s existing supply agreements, including the minimum obligations for NIVIS that the Company entered into in 2022 ahead of the initial sales of NIVIS. In exchange for entering into the Transaction, the Company received an initial $5.0 million upfront payment and was entitled to receive future revenue-sharing payments based on the net sales of NIVIS (now marketed as HELIOGEN) during the first two years following its launch by MDXG, which revenue-sharing payments would range from a minimum of $3.0 million to a maximum of $7.0 million in the aggregate. In addition, $0.4 million of consideration was received for existing NIVIS inventory on-hand. Any consideration in excess of $3.0 million up to $7.0 million was considered variable consideration that was fully constrained.

The Company accounted for the Transaction as a sale of a nonfinancial asset group in accordance with ASC 610-20 and followed the principles of ASC 606 to determine the consideration of $8.4 million related to the Transaction which includes the consideration for the existing inventory. The Company transferred control of the nonfinancial asset group in March 2024 and upon closing recognized a gain of $7.6 million in the consolidated statement of operations and comprehensive loss during the three months ended March 31, 2024. The $8.4 million transaction price included the minimum revenue-share payment of $3.0 million, which was recorded as a receivable when the deal closed. Revenue-share payments commenced after the third quarter of 2024 and the remainder of the minimum revenue share payment was collected during the three months ended September 30, 2026. During the term of the revenue-sharing payment period, the Company assessed the constraint of variable consideration at each reporting date and no changes were made to the estimate of variable consideration.

Going Concern (Details) - USD ($) $ in Thousands	Sep. 30, 2026	Dec. 31, 2025
Background
Accumulated deficit	$ 430,398	$ 397,561

- Definition

Amount of accumulated undistributed earnings (deficit).

+ References + Details

Summary of Significant Accounting Policies - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2026	Dec. 31, 2025
Fair Value, Recurring \| Level 1 \| money market fund
Fair Value of Financial Instruments
Cash equivalents	$ 20,121	$ 47,068

Stock-Based Compensation - Restricted Stock Units (Details)	9 Months Ended
	Sep. 30, 2026 shares
Service Based Restricted Stock Units
Stock-Based Compensation
Outstanding at beginning of period	1,104,662
Granted	1,858,735
Vested	(740,071)
Canceled/forfeited	(430,935)
Outstanding at end of period	1,792,391
Performance based restricted stock units
Stock-Based Compensation
Outstanding at beginning of period	216,500
Canceled/forfeited	(60,319)
Outstanding at end of period	156,181

Stockholders' Equity - Public Stock Offerings (Details) - Equity Distribution Agreement - USD ($) $ in Millions	35 Months Ended
	Sep. 30, 2026	Nov. 30, 2023
Stockholders' Equity
Common Stock Available Under ATM		$ 50.0
Value of shares sold	$ 0.0

Stock-Based Compensation - Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2026	Sep. 30, 2025	Sep. 30, 2026	Sep. 30, 2025
Stock-Based Compensation
Total stock-based compensation	$ 626	$ 955	$ 2,055	$ 2,984
Sales and marketing
Stock-Based Compensation
Total stock-based compensation	118	264	549	844
General and administrative
Stock-Based Compensation
Total stock-based compensation	475	565	1,328	1,772
Research and development
Stock-Based Compensation
Total stock-based compensation	$ 33	$ 126	$ 178	$ 368

Stockholders' Equity - Warrant Activity (Details)	9 Months Ended
Stockholders' Equity - Warrant Activity (Details)	Sep. 30, 2026 shares
Summary of warrant activity
Beginning balance	14,711,556
Ending balance	14,711,556

Stockholders' Equity - Warrants outstanding (Details) - $ / shares	9 Months Ended
	Sep. 30, 2026	Dec. 31, 2025
Stockholders' Equity
Warrants outstanding	14,711,556	14,711,556
Common stock warrants expiring in 2028
Stockholders' Equity
Warrants outstanding	8,379
Warrants exercise price	$ 28.65
Expiration dates	2028
Common stock warrants expiring in 2027
Stockholders' Equity
Warrants outstanding	80,177
Warrants exercise price	$ 28.65
Expiration dates	2027
Common stock warrants issued with credit agreement
Stockholders' Equity
Warrants outstanding	2,000,000
Warrants exercise price	$ 1.11
Expiration dates	2035
Pre-funded common stock warrants
Stockholders' Equity
Warrants outstanding	12,623,000
Warrants exercise price	$ 0.0001

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2026

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

(4) Summary of Significant Accounting Policies

The Company’s complete summary of significant accounting policies can be found in “Note 3, Summary of Significant Accounting Policies” in the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Any reference in these notes to applicable guidance is meant to refer to generally accepted accounting principles (“GAAP”) in the U.S. as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) promulgated by the Financial Accounting Standards Board (“FASB”).

Interim Financial Statements

The accompanying unaudited interim consolidated financial statements have been prepared from the books and records of the Company in accordance with GAAP for interim financial information and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”), which permits reduced disclosures for interim periods. All adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the accompanying consolidated balance sheets and statements of operations and comprehensive loss, stockholders’(deficit) equity and cash flows have been made. Although these interim consolidated financial statements do not include all of the information and footnotes required for complete annual consolidated financial statements, management believes the disclosures are adequate to make the information presented not misleading. The unaudited interim results of operations and cash flows are not necessarily indicative of the results that may be expected for the full year. The unaudited interim consolidated financial statements and footnotes should be read in conjunction with the consolidated financial statements and footnotes included in the Annual Report on Form 10-K for the year ended December 31, 2025.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The most significant judgments are employed in estimates used to determine the recoverability of the carrying value of the Company’s inventory. As future events and their effects cannot be determined with precision, actual results may differ significantly from these estimates.

Operating Expenses – Other

The Company classifies certain operating expenses that are not representative of the Company’s ongoing operations as other on the condensed consolidated statements of operations and comprehensive loss. These include costs related to the Company’s reduction in force and related legal expenses. To conform to current period presentation, $0.2 million and $0.4 million of sales and marketing expenses related to severance for the three and nine months ended September 30,

2025, respectively, have been reclassified as other in the consolidated statements of operations and comprehensive loss presented in this Quarterly Report on Form 10-Q. The following table summarizes the Company’s expenses classified as other in the consolidated statements of operations and comprehensive loss (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026		2025
Severance expense	$	1,700	$	161	$	2,236	$	403
Legal expenses related to reduction in force		284		—		284		—
Total other	$	1,984	$	161	$	2,520	$	403

See Note 10 “Reduction in Force” for additional information regarding the severance expense classified as other in the consolidated statements of operations and comprehensive loss.

Segments

Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources in assessing performance. The Company has one reportable segment which is focused on providing innovative soft-tissue reconstruction solutions that optimize clinical outcomes by prioritizing the preservation and restoration of the patient’s own anatomy. The Company’s chief operating decision maker (“CODM”) is the chief executive officer.

The accounting policies of the Company’s segment are the same as those described in the summary of significant accounting policies. The CODM uses budget to actual forecasts and net income in assessing entity-wide operating results and deciding how to invest in the Company. The CODM is regularly provided with net loss and consolidated assets, which are reported on the consolidated statement of operations and comprehensive loss and consolidated balance sheet, respectively.

The tables below summarizes the items included within net loss regularly provided to the CODM:


	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026		2025
Revenue	$	18,959	$	20,689	$	57,309	$	59,406
Cost of revenue (excluding amortization of intangible assets and write-off of expired product)		5,586		6,124		16,552		16,623
Cost of revenue (amortization of intangible assets and write-off of expired product)		1,065		596		1,986		2,197
Gross profit		12,308		13,969		38,771		40,586
Sales and marketing:
Sales and sales management		8,253		10,291		29,051		33,025
International		1,912		1,329		5,932		4,137
Other sales and marketing (a)		2,843		3,446		10,477		11,127
Total sales and marketing		13,008		15,066		45,460		48,289
General and Administrative:
Finance and Legal		1,428		1,842		5,450		5,761
Other general and administrative (b)		1,575		2,106		5,771		6,149
Total general and administrative		3,003		3,948		11,221		11,910
Research and Development:
Clinical		805		873		3,028		2,654
Regulatory and quality		299		468		1,387		1,334
Other research and development (c)		499		1,007		2,254		3,103
Total research and development		1,603		2,348		6,669		7,091
Other		1,984		161		2,520		403
Other segment items (d)		(2,012)		(1,049)		(5,738)		(2,683)
Net loss	$	(9,302)	$	(8,603)	$	(32,837)	$	(29,790)

(a) Other sales and marketing includes strategy, analytics and allocated facility expenses.
(b) Other general and administrative includes executive, human resources, information technology and allocated facility expenses.
(c) Other research and development includes engineering and allocated facility expenses.
(d) Other segment items include other operating income and other expenses as disclosed in the consolidated statements of operations and comprehensive loss; interest expense, loss on extinguishment of debt, other income and income tax expense.

Restricted Cash

Restricted cash represents an amount held in an escrow deposit account, collateralizing a letter of credit for the Company’s office lease.

The following table presents a reconciliation of all captions of cash and cash equivalents and restricted cash reported on the balance sheets that sum to the total of those same amounts shown in the statements of cash flows.


		September 30,
		2026			2025
Cash and cash equivalents		$	22,664		$	29,713
Restricted cash			200			250
Total cash and cash equivalents and restricted cash shown in statements of cash flows		$	22,864		$	29,963

Revenue Recognition

Under ASC Topic 606, Revenue from Contracts with Customers, (“ASC 606”), an entity recognizes revenue when its customer obtains control of the promised good, in an amount that reflects the consideration that the entity expects to be entitled in exchange for those goods. The Company performs the following five steps to recognize revenue under ASC 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only recognizes revenue when it is probable that it will collect the consideration to which it is entitled in exchange for the goods or services that will be transferred to the customer.

A significant portion of the Company’s revenue is generated from product shipped to a customer or from consigned inventory maintained at hospitals or other surgical facilities. Revenue from the sale of consigned products is recognized when control is transferred to the customer, which occurs at the time the product is used in a surgical procedure. For product that is not held on consignment, the Company recognizes revenue when control transfers to the customer which occurs at the time the product is shipped or delivered. For all of the Company’s customer contracts, the only identified performance obligation is providing the product to the customer.

Revenue is recognized at the estimated net sales price, which includes estimates of variable consideration. The Company enters into contracts with certain third-party payors for the payment of rebates with respect to the utilization of its products. These rebates are primarily based on contractual percentages. The Company estimates and records these rebates in the same period the related revenue is recognized, resulting in a reduction of product revenue.

Payment terms with customers do not exceed one year and, therefore, the Company does not account for a financing component in these arrangements. There are no incremental costs of obtaining a contract that would rise to or enhance an asset other than product costs, which are a component of inventory. The Company expenses incremental costs of obtaining a contract with a customer (e.g., sales commissions) when incurred as the period of benefit is less than one year. Fees charged to customers for shipping are recognized as revenue.

The following table presents revenue disaggregated by the Company’s portfolio of products (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026		2025
OviTex	$	13,166	$	13,206	$	39,093	$	37,802
OviTex PRS		5,108		7,079		16,449		20,456
Other		685		404		1,767		1,148
Total revenue	$	18,959	$	20,689	$	57,309	$	59,406

Sales outside of the U.S. were $3.6 million and $3.0 million, respectively, for the three months ended September 30, 2026 and 2025 and $11.1 million and $8.7 million, respectively, for the nine months ended September 30, 2026 and 2025. Sales within the U.S. were $15.4 million and $17.7 million, respectively, for the three months ended September 30, 2026 and 2025 and $46.2 million and $50.7 million, respectively, for the nine months ended September 30, 2026 and 2025.

Fair Value of Financial Instruments

Fair value is the price that could be received to sell an asset or paid to transfer a liability in an orderly transaction among market participants. Fair value determination in accordance with applicable accounting guidance requires that several significant judgments be made. Additionally, fair value is used on a nonrecurring basis to evaluate assets for impairment or as required for disclosure purposes by applicable accounting guidance on disclosures about fair value of financial instruments. Depending on the nature of the assets and liabilities, various valuation techniques and assumptions are used

when estimating fair value. The carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, other assets, and accounts payable are shown at cost, which approximates fair value due to the short-term nature of these instruments. The carrying amounts of the Perceptive Term Loan Facility (as later defined) approximates fair value due to its variable interest rate.

The Company follows the provisions of ASC Topic 820, Fair Value Measurement, for financial assets and liabilities measured on a recurring basis. The guidance requires fair value measurements be classified and disclosed in one of the following three categories:

●

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

●

Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liabilities.

●

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

The following fair value hierarchy table presents information about each major category of the Company’s financial assets and liabilities measured at fair value on a recurring basis (in thousands):


	Fair value measurement at reporting date using
	Quoted prices in
	active markets		Significant other		Significant
	for identical		observable		unobservable
	assets		inputs		inputs
	(Level 1)		(Level 2)		(Level 3)
September 30, 2026:
Cash equivalents – money market fund	$	20,121	$	—	$	—

December 31, 2025:
Cash equivalents – money market fund	$	47,068	$	—	$	—

Net Loss per Common Share

Basic and diluted net loss per common share is determined by dividing net loss by the weighted-average shares of common stock outstanding during the reporting period. In periods in which the Company reports a net loss, diluted net loss per share is the same as basic net loss per share since dilutive shares are not assumed to have been issued if their effect is antidilutive. Therefore, the weighted-average shares used to calculate both basic and diluted net loss per share are the same.

The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares outstanding for the periods presented, as they would be antidilutive.


	Nine months ended September 30,
	2026	2025
Stock options	5,526,842	2,655,472
Unvested restricted stock units	1,948,572	1,309,701
Common stock warrants	88,556	88,556
Common stock warrants issued with credit agreement	2,000,000	—
Total	9,563,970	4,053,729

Due to their nominal exercise price of $0.0001 per share, all outstanding pre-funded warrants are considered common stock equivalents and are included in the calculation of weighted-average shares of common stock outstanding from the respective closing dates.

Recently Issued Accounting Pronouncements

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses. ASU 2024-03 requires additional disclosure of specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. The requirements will be applied prospectively with the option for retrospective application. The Company is currently evaluating the impact that the adoption of ASU 2024-03 will have on its consolidated financial statements and disclosures.

In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-use Software. The new guidance eliminates project stages and requires capitalizing software costs to begin when (1) management has authorized and committed to funding the software project and (2) it is probable that the project will be completed and the software will be used to perform the function intended. When evaluating if a project is probable to be completed, significant development uncertainty must be assessed. Additionally, disclosures for property, plant and equipment will be required for all capitalized software costs. The guidance is effective in the first quarter of 2028 with early adoption permitted as of the beginning of an annual reporting period. Upon adoption, the guidance may be applied prospectively, retrospectively or using a modified transition approach. The Company is currently evaluating the expected impact that the standard could have on its consolidated financial statements and related disclosures.

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2026	Dec. 31, 2025
Accrued Expenses and Other Current Liabilities
Compensation and related benefits	$ 5,717	$ 7,096
Third-party and professional fees	3,927	3,525
Amounts due to contract manufacturer	2,745	3,058
Current portion of operating lease liabilities	$ 532	$ 524
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Total accrued expenses and other current liabilities	Total accrued expenses and other current liabilities
Research and development expenses	$ 30	$ 27
Income/sales tax payable	849	725
Other	364	711
Total accrued expenses and other current liabilities	$ 14,164	$ 15,666

Stock-Based Compensation - Stock Option Activity (Details)	9 Months Ended
	Sep. 30, 2026 $ / shares shares
Number of shares
Balance at beginning of period \| shares	2,672,859
Granted \| shares	3,504,960
Canceled/forfeited \| shares	(650,977)
Balance at end of period \| shares	5,526,842
Vested and expected to vest at end of period \| shares	5,235,465
Exercisable at end of period \| shares	2,303,608
Weighted average exercise price per share
Balance at beginning of period (in dollars per share) \| $ / shares	$ 8.62
Granted ( in dollars per share) \| $ / shares	0.81
Canceled/forfeited (in dollars per share) \| $ / shares	4.64
Balance at end of period (in dollars per share) \| $ / shares	4.13
Vested and expected to vest at end of period (in dollars per share) \| $ / shares	4.31
Exercisable at end of period (in dollars per share) \| $ / shares	$ 8.65
Weighted average remaining contractual term (years)
Weighted average remaining contractual term, outstanding	6 years 6 months 3 days
Weighted average remaining contractual term, Vested and expected to vest	6 years 3 months 29 days
Weighted average remaining contractual term, Exercisable	2 years 29 days

Summary of Significant Accounting Policies - Revenue Disaggregated (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2026	Sep. 30, 2025	Sep. 30, 2026	Sep. 30, 2025
Revenue disaggregated
Total revenue	$ 18,959	$ 20,689	$ 57,309	$ 59,406
Incremental costs of obtaining a contract			0
U.S
Revenue disaggregated
Total revenue	15,400	17,700	46,200	50,700
Non-US
Revenue disaggregated
Total revenue	3,600	3,000	11,100	8,700
OviTex
Revenue disaggregated
Total revenue	13,166	13,206	39,093	37,802
OviTex PRS
Revenue disaggregated
Total revenue	5,108	7,079	16,449	20,456
Other
Revenue disaggregated
Total revenue	$ 685	$ 404	$ 1,767	$ 1,148

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-7

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-5

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 91
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479777/606-10-55-91

Reference 4: http://www.xbrl.org/2003/role/exampleRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 91
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479777/606-10-55-91

Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 91
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479777/606-10-55-91

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 91
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479777/606-10-55-91

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 91
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479777/606-10-55-91

Reference 8: http://www.xbrl.org/2003/role/exampleRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 91
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479777/606-10-55-91

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 91
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479777/606-10-55-91

+ Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 220
-SubTopic 40
-Name Accounting Standards Codification
-Section 55
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147476153/220-40-55-4

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 220
-SubTopic 40
-Name Accounting Standards Codification
-Section 55
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147476153/220-40-55-14

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-41

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-42

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-7

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482964/270-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (ee)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 8: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 9: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479941/924-10-S99-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-5

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-30

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-40

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-4

+ Details

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2026

Stock-Based Compensation

Schedule of stock based compensation expense categories in statement of operations

The Company recorded stock-based compensation expense in the following expense categories of the accompanying consolidated statements of operations and comprehensive loss (in thousands):


		Three months ended September 30,				Nine months ended September 30,
		2026		2025		2026		2025
Sales and marketing		$	118	$	264	$	549	$	844
General and administrative			475		565		1,328		1,772
Research and development			33		126		178		368
Total stock‑based compensation		$	626	$	955	$	2,055	$	2,984

Schedule of stock option activity


							Weighted
							average
				Weighted			remaining
		Number of		average exercise			contractual term
		shares		price per share			(years)
Outstanding at January 1, 2026		2,672,859		$	8.62
Granted		3,504,960			0.81
Exercised		—			—
Canceled/forfeited		(650,977)			4.64
Outstanding at September 30, 2026		5,526,842		$	4.13		6.51
Vested and expected to vest at September 30, 2026		5,235,465		$	4.31		6.33
Exercisable at September 30, 2026		2,303,608		$	8.65		2.08

Schedule of weighted average assumptions


		Nine months ended September 30,
		2026
Expected dividend yield		—
Expected volatility		68.0	%
Risk‑free interest rate		4.28	%
Expected term (in years)		6.06

Schedule of service-based (RSUs)


		Number of
		shares
Outstanding at January 1, 2026		1,104,662
Granted		1,858,735
Vested		(740,071)
Canceled/forfeited		(430,935)
Outstanding at September 30, 2026		1,792,391

Schedule of performance-based (RSUs)


		Number of
		shares
Outstanding at January 1, 2026		216,500
Granted		—
Vested		—
Canceled/forfeited		(60,319)
Outstanding at September 30, 2026		156,181

Stock-Based Compensation - Narratives (Details)		9 Months Ended
Stock-Based Compensation - Narratives (Details)	Apr. 08, 2026 shares	Sep. 30, 2026 USD ($) item $ / shares shares
Stock-Based Compensation
Number of equity incentive plans \| item		2
Employee Stock Option
Stock-Based Compensation
Inducement grants of Stock Options \| shares		2,684,186
Aggregate intrinsic value of exercisable options		$ 100,000
Aggregate intrinsic value of outstanding options		$ 1,100,000
Weighted average grant date fair value, Options (per share) \| $ / shares		$ 0.49
Aggregate intrinsic value of exercised options		$ 0
Unrecognized compensation expense		$ 1,500,000
Weighted average period for recognition of unrecognized expenses		3 years 7 months 6 days
Restricted Stock Units (RSUs)
Stock-Based Compensation
Weighted average grant date fair value, Equity Instruments (per share) \| $ / shares		$ 0.8
Aggregate intrinsic value		$ 2,200,000
Unrecognized compensation expense		$ 1,700,000
Weighted average period for recognition of unrecognized expenses		2 years 10 months 24 days
Performance based restricted stock units
Stock-Based Compensation
Inducement grants \| shares		760,010
Performance based restricted stock units \| Minimum
Stock-Based Compensation
Vest Range		0.00%
Performance based restricted stock units \| Maximum
Stock-Based Compensation
Vest Range		110.00%
Service based restricted stock unit
Stock-Based Compensation
Vesting period		4 years
2019 Equity Incentive Plan
Stock-Based Compensation
Number of authorized shares \| shares	3,500,000
Shares available for future issuance \| shares		5,868,378
2019 Equity Incentive Plan \| Employee Stock Option
Stock-Based Compensation
Vesting period		4 years
Contractual term		10 years

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2026	Sep. 30, 2025	Sep. 30, 2026	Sep. 30, 2025
Pay vs Performance Disclosure
Net Income (Loss)	$ (9,302)	$ (8,603)	$ (32,837)	$ (29,790)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 946
-SubTopic 830
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479168/946-830-55-10

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 220
-SubTopic 40
-Name Accounting Standards Codification
-Section 55
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147476153/220-40-55-4

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Topic 220
-SubTopic 40
-Name Accounting Standards Codification
-Section 55
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147476153/220-40-55-21

Reference 4: http://www.xbrl.org/2003/role/exampleRef
-Topic 220
-SubTopic 40
-Name Accounting Standards Codification
-Section 55
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147476153/220-40-55-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(i))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(k)(2))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482907/825-10-50-28

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-4

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 480
-SubTopic 10
-Name Accounting Standards Codification
-Section S50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479857/480-10-S50-3

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 480
-SubTopic 10
-Name Accounting Standards Codification
-Section S45
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479887/480-10-S45-3

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 480
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3A
-Subparagraph (24)(d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480244/480-10-S99-3A

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 105
-SubTopic 10
-Name Accounting Standards Codification
-Section 65
-Paragraph 9
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479343/105-10-65-9

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 65
-Paragraph 17
-Subparagraph (d)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480336/718-10-65-17

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-6

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-9

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 805
-SubTopic 60
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147476176/805-60-65-1

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 323
-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Subparagraph (g)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478666/740-323-65-2

Reference 19: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483621/220-10-S99-2

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481687/323-10-50-3

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482765/220-10-50-6

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-3

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-1

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480175/815-40-65-1

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-8

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-11

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-11

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section 45
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479105/946-220-45-7

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477250/944-220-S99-1

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(9))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1

Reference 32: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-09(1)(d))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-3

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1A

Reference 34: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1A

Reference 35: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1A

Reference 36: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1A

Reference 37: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1A

Reference 38: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1B

Reference 39: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1B

Reference 40: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1B

Reference 41: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1B

Reference 42: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1B

Reference 43: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 60B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482689/260-10-45-60B

Reference 44: http://www.xbrl.org/2003/role/disclosureRef
-Topic 205
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483499/205-20-50-7

Reference 45: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 230
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 28
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482740/230-10-45-28

Reference 46: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482790/220-10-45-1A

Reference 47: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482790/220-10-45-1B

Reference 48: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 65
-Paragraph 4
-Subparagraph (f)(4)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481538/470-20-65-4

Reference 49: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 942
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478524/942-220-S99-1

+ Details

Reduction in Force (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
Reduction in Force (Details) - USD ($) $ in Thousands	Aug. 31, 2026	Sep. 30, 2026	Sep. 30, 2025	Sep. 30, 2026	Sep. 30, 2025
Reduction in Force
Reduction in force (in %)	20.00%
Severance expenses related to reduction in force		$ 1,700	$ 161	$ 2,236	$ 403

Reduction in Force

9 Months Ended

Sep. 30, 2026

Reduction in Force

Reduction in Force

(10) Reduction in Force

In August 2026, the Company implemented a plan designed to improve the Company’s efficiency by reducing operating expenses and extending liquidity. In addition to decreasing other operating expenses, the plan included a reduction in force representing approximately 20% of the Company’s workforce. For the three months ended September 30, 2026, the Company incurred $1.7 million of employee severance expense related to the reduction in force.

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2026	Nov. 05, 2026
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2026
Document Transition Report	false
Entity File Number	001-39130
Entity Registrant Name	TELA Bio, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	45-5320061
Entity Address, Address Line One	1 Great Valley Parkway, Suite 24
Entity Address, City or Town	Malvern
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19355
City Area Code	484
Local Phone Number	320-2930
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	TELA
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		45,188,230
Entity Central Index Key	0001561921
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2026
Document Fiscal Period Focus	Q3
Amendment Flag	false

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2026

Summary of Significant Accounting Policies

Interim Financial Statements

Use of Estimates

Operating Expenses - Other

Operating Expenses – Other


	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026		2025
Severance expense	$	1,700	$	161	$	2,236	$	403
Legal expenses related to reduction in force		284		—		284		—
Total other	$	1,984	$	161	$	2,520	$	403

See Note 10 “Reduction in Force” for additional information regarding the severance expense classified as other in the consolidated statements of operations and comprehensive loss.

Segments

Segments

The tables below summarizes the items included within net loss regularly provided to the CODM:


	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026		2025
Revenue	$	18,959	$	20,689	$	57,309	$	59,406
Cost of revenue (excluding amortization of intangible assets and write-off of expired product)		5,586		6,124		16,552		16,623
Cost of revenue (amortization of intangible assets and write-off of expired product)		1,065		596		1,986		2,197
Gross profit		12,308		13,969		38,771		40,586
Sales and marketing:
Sales and sales management		8,253		10,291		29,051		33,025
International		1,912		1,329		5,932		4,137
Other sales and marketing (a)		2,843		3,446		10,477		11,127
Total sales and marketing		13,008		15,066		45,460		48,289
General and Administrative:
Finance and Legal		1,428		1,842		5,450		5,761
Other general and administrative (b)		1,575		2,106		5,771		6,149
Total general and administrative		3,003		3,948		11,221		11,910
Research and Development:
Clinical		805		873		3,028		2,654
Regulatory and quality		299		468		1,387		1,334
Other research and development (c)		499		1,007		2,254		3,103
Total research and development		1,603		2,348		6,669		7,091
Other		1,984		161		2,520		403
Other segment items (d)		(2,012)		(1,049)		(5,738)		(2,683)
Net loss	$	(9,302)	$	(8,603)	$	(32,837)	$	(29,790)

(a) Other sales and marketing includes strategy, analytics and allocated facility expenses.
(b) Other general and administrative includes executive, human resources, information technology and allocated facility expenses.
(c) Other research and development includes engineering and allocated facility expenses.
(d) Other segment items include other operating income and other expenses as disclosed in the consolidated statements of operations and comprehensive loss; interest expense, loss on extinguishment of debt, other income and income tax expense.

Restricted Cash


	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026		2025
Revenue	$	18,959	$	20,689	$	57,309	$	59,406
Cost of revenue (excluding amortization of intangible assets and write-off of expired product)		5,586		6,124		16,552		16,623
Cost of revenue (amortization of intangible assets and write-off of expired product)		1,065		596		1,986		2,197
Gross profit		12,308		13,969		38,771		40,586
Sales and marketing:
Sales and sales management		8,253		10,291		29,051		33,025
International		1,912		1,329		5,932		4,137
Other sales and marketing (a)		2,843		3,446		10,477		11,127
Total sales and marketing		13,008		15,066		45,460		48,289
General and Administrative:
Finance and Legal		1,428		1,842		5,450		5,761
Other general and administrative (b)		1,575		2,106		5,771		6,149
Total general and administrative		3,003		3,948		11,221		11,910
Research and Development:
Clinical		805		873		3,028		2,654
Regulatory and quality		299		468		1,387		1,334
Other research and development (c)		499		1,007		2,254		3,103
Total research and development		1,603		2,348		6,669		7,091
Other		1,984		161		2,520		403
Other segment items (d)		(2,012)		(1,049)		(5,738)		(2,683)
Net loss	$	(9,302)	$	(8,603)	$	(32,837)	$	(29,790)

(a) Other sales and marketing includes strategy, analytics and allocated facility expenses.
(b) Other general and administrative includes executive, human resources, information technology and allocated facility expenses.
(c) Other research and development includes engineering and allocated facility expenses.
(d) Other segment items include other operating income and other expenses as disclosed in the consolidated statements of operations and comprehensive loss; interest expense, loss on extinguishment of debt, other income and income tax expense.

Revenue Recognition

The following table presents revenue disaggregated by the Company’s portfolio of products (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026		2025
OviTex	$	13,166	$	13,206	$	39,093	$	37,802
OviTex PRS		5,108		7,079		16,449		20,456
Other		685		404		1,767		1,148
Total revenue	$	18,959	$	20,689	$	57,309	$	59,406

Fair Value of Financial Instruments

●

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

●

Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liabilities.

●

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

The following fair value hierarchy table presents information about each major category of the Company’s financial assets and liabilities measured at fair value on a recurring basis (in thousands):


	Fair value measurement at reporting date using
	Quoted prices in
	active markets		Significant other		Significant
	for identical		observable		unobservable
	assets		inputs		inputs
	(Level 1)		(Level 2)		(Level 3)
September 30, 2026:
Cash equivalents – money market fund	$	20,121	$	—	$	—

December 31, 2025:
Cash equivalents – money market fund	$	47,068	$	—	$	—

Net Loss per Common Share

The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares outstanding for the periods presented, as they would be antidilutive.


	Nine months ended September 30,
	2026	2025
Stock options	5,526,842	2,655,472
Unvested restricted stock units	1,948,572	1,309,701
Common stock warrants	88,556	88,556
Common stock warrants issued with credit agreement	2,000,000	—
Total	9,563,970	4,053,729

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2026

Stockholders' Equity

Schedule of warrants outstanding to purchase common stock


				Exercise		Expiration
		Outstanding		price		dates
Common stock warrants		8,379	$	28.65		2028
Common stock warrants		80,177		28.65		2027
Common stock warrants issued with credit agreement		2,000,000		1.11		2035
Pre-funded common stock warrants		12,623,000		0.0001		NA
		14,711,556

Summary of warrant activity


		Number of
		warrants
Outstanding at January 1, 2026		14,711,556
Granted		—
Exercised		—
Canceled/forfeited		—
Outstanding at September 30, 2026		14,711,556

Stock-Based Compensation - Weighted average assumptions (Details)	9 Months Ended
	Sep. 30, 2026
Stock-Based Compensation
Expected volatility	68.00%
Risk-free interest rate	4.28%
Expected term (in years)	6 years 21 days

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2026

Summary of Significant Accounting Policies

Schedule of Company's expenses classified as other in the consolidated statements of operations and comprehensive loss

The following table summarizes the Company’s expenses classified as other in the consolidated statements of operations and comprehensive loss (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026		2025
Severance expense	$	1,700	$	161	$	2,236	$	403
Legal expenses related to reduction in force		284		—		284		—
Total other	$	1,984	$	161	$	2,520	$	403

Schedule of the items included within net loss regularly provided to the CODM


	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026		2025
Revenue	$	18,959	$	20,689	$	57,309	$	59,406
Cost of revenue (excluding amortization of intangible assets and write-off of expired product)		5,586		6,124		16,552		16,623
Cost of revenue (amortization of intangible assets and write-off of expired product)		1,065		596		1,986		2,197
Gross profit		12,308		13,969		38,771		40,586
Sales and marketing:
Sales and sales management		8,253		10,291		29,051		33,025
International		1,912		1,329		5,932		4,137
Other sales and marketing (a)		2,843		3,446		10,477		11,127
Total sales and marketing		13,008		15,066		45,460		48,289
General and Administrative:
Finance and Legal		1,428		1,842		5,450		5,761
Other general and administrative (b)		1,575		2,106		5,771		6,149
Total general and administrative		3,003		3,948		11,221		11,910
Research and Development:
Clinical		805		873		3,028		2,654
Regulatory and quality		299		468		1,387		1,334
Other research and development (c)		499		1,007		2,254		3,103
Total research and development		1,603		2,348		6,669		7,091
Other		1,984		161		2,520		403
Other segment items (d)		(2,012)		(1,049)		(5,738)		(2,683)
Net loss	$	(9,302)	$	(8,603)	$	(32,837)	$	(29,790)

(a) Other sales and marketing includes strategy, analytics and allocated facility expenses.
(b) Other general and administrative includes executive, human resources, information technology and allocated facility expenses.
(c) Other research and development includes engineering and allocated facility expenses.
(d) Other segment items include other operating income and other expenses as disclosed in the consolidated statements of operations and comprehensive loss; interest expense, loss on extinguishment of debt, other income and income tax expense.

Schedule of reconciliation of all captions of cash, cash equivalents and restricted cash


		September 30,
		2026			2025
Cash and cash equivalents		$	22,664		$	29,713
Restricted cash			200			250
Total cash and cash equivalents and restricted cash shown in statements of cash flows		$	22,864		$	29,963

Schedule of disaggregation of revenue

The following table presents revenue disaggregated by the Company’s portfolio of products (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026		2025
OviTex	$	13,166	$	13,206	$	39,093	$	37,802
OviTex PRS		5,108		7,079		16,449		20,456
Other		685		404		1,767		1,148
Total revenue	$	18,959	$	20,689	$	57,309	$	59,406

Schedule of fair value of assets and liabilities measured on recurring basis

The following fair value hierarchy table presents information about each major category of the Company’s financial assets and liabilities measured at fair value on a recurring basis (in thousands):


	Fair value measurement at reporting date using
	Quoted prices in
	active markets		Significant other		Significant
	for identical		observable		unobservable
	assets		inputs		inputs
	(Level 1)		(Level 2)		(Level 3)
September 30, 2026:
Cash equivalents – money market fund	$	20,121	$	—	$	—

December 31, 2025:
Cash equivalents – money market fund	$	47,068	$	—	$	—

Schedule of dilutive securities excluded


	Nine months ended September 30,
	2026	2025
Stock options	5,526,842	2,655,472
Unvested restricted stock units	1,948,572	1,309,701
Common stock warrants	88,556	88,556
Common stock warrants issued with credit agreement	2,000,000	—
Total	9,563,970	4,053,729

Summary of Significant Accounting Policies - Net loss per share (Potentially dilutive securities) (Details) - $ / shares	9 Months Ended
	Sep. 30, 2026	Sep. 30, 2025
Potentially dilutive securities
Total	9,563,970	4,053,729
Pre-funded common stock warrants
Potentially dilutive securities
Warrants exercise price	$ 0.0001
Employee Stock Option
Potentially dilutive securities
Total	5,526,842	2,655,472
Unvested restricted stock units
Potentially dilutive securities
Total	1,948,572	1,309,701
Common stock warrants
Potentially dilutive securities
Total	88,556	88,556
Common stock warrants issued with credit agreement
Potentially dilutive securities
Total	2,000,000

Debt

9 Months Ended

Sep. 30, 2026

Debt

Debt

(6) Debt

Debt consisted of the following (in thousands):


		September 30,			December 31,
		2026			2025
Perceptive term loan		$	60,000		$	60,000
Unamortized issuance costs			(3,701)			(4,347)
Total debt		$	56,299		$	55,653

Perceptive Term Loan

On November 13, 2025, the Company entered into a Credit Agreement and Guaranty (the “Credit Agreement”) with Perceptive Credit Holdings V, LP, as lender and administrative agent (“Perceptive”), which provides for a senior secured term loan facility in an aggregate principal amount of up to $70.0 million (the “Perceptive Term Loan Facility”). An initial loan in an aggregate principal amount of $60.0 million (the “Initial Loan”) was funded under the Perceptive Term Loan Facility on November 14, 2025 (the “Closing Date”). In addition to the Initial Loan, the Perceptive Term Loan Facility includes an additional delayed draw loan in an aggregate principal amount of $10.0 million to be available in a single drawing after the Closing Date on or prior to the Delayed Draw Commitment Termination Date (as defined in the Credit Agreement but not later than April 30, 2027) (the “Delayed Draw Loan,” together with the Initial Loan, the “Loans”), which will be accessible by the Company contingent on it achieving specified net revenue thresholds and satisfying certain customary conditions precedent. The Perceptive Term Loan Facility has a maturity date of November 14, 2030 (the “Maturity Date”). During the three months ended September 30, 2026, the debt was reclassified from long-term to current. As previously discussed in Note 3, Perceptive agreed in September 2026 that the minimum revenue covenant will not be tested with respect to the fiscal quarters ending September 30, 2026 and December 31, 2026. Given the periods not tested do not extend beyond one year from the reporting date and the Company may not satisfy the applicable covenant requirements for periods after December 31, 2026 and may not obtain additional waivers or amendments from Perceptive, the debt was classified as current.

The Perceptive Term Loan Facility will accrue interest at an annual rate equal to the sum of (a) an applicable margin of 7.85% (the “Applicable Margin”) plus (b) the greater of (i) the Reference Rate (as defined in the Credit Agreement) and (ii) four and one quarter percent (4.25%). Accrued interest on the Term Loans is payable monthly in arrears. Upon an Event of Default (as defined in the Credit Agreement), the Applicable Margin will automatically increase by an additional 3.00% per annum.

Prior to the Maturity Date, there will be no scheduled principal payments under the Perceptive Term Loan Facility. On the Maturity Date, the Company is required to pay Perceptive the aggregate outstanding principal amount of the Loans and all accrued and unpaid interest thereon. The Term Loans may be prepaid at any time, subject to a prepayment premium equal to 2% to 10% of the aggregate outstanding principal amount being prepaid, depending on the date of prepayment.

In connection with the Credit Agreement, the Company also entered into a Security Agreement (the “Security Agreement”), dated as of the Signing Date, with Perceptive, pursuant to which all of its obligations under the Credit Agreement are secured by a first lien perfected security interest on substantially all of its existing and after-acquired assets, subject to customary exceptions.

In addition, on the Closing Date, as consideration for the Credit Agreement, the Company issued to Perceptive warrants to purchase up to 2,000,000 shares (the “Warrant Shares”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”), with an exercise price of $1.11 (the “Initial Loan Warrants”). Additionally, if the Delayed Draw Loan is drawn upon, the Company will be required to issue to Perceptive additional warrants to purchase up to 333,333 shares of its Common Stock, with an exercise price of $1.11 (the “DDL Warrants” and, together with the Initial Loan Warrants, the “Warrants”).

The Warrants have an expiration date of November 14, 2035 and may be exercised on a cashless or “net” basis. The Warrants are freely transferable and will be automatically exercised, on a cashless basis, prior to their expiration if the value of the underlying shares is greater than the then-applicable exercise price. The exercise price described herein is subject to adjustment for certain recapitalization events, as further described in the Warrants. Pursuant to the Warrants, the Company has granted Perceptive certain resale registration rights in respect of the Warrant Shares. The Company determined that the Warrants were equity classified and therefore allocated the proceeds received between the debt and warrants based on their relative fair values. The amount allocated to the Warrants, or $1.4 million, was treated as an additional debt issuance cost. None of the Warrants have been exercised as of September 30, 2026.

The Credit Agreement contains certain representations and warranties, affirmative covenants, negative covenants, financial covenants, and conditions that are customarily required for similar financings. The affirmative covenants, among other things, require the Company to undertake various reporting and notice requirements, maintain insurance and maintain in full force and effect all Regulatory Approvals, Material Agreements, Intellectual Property (each as defined in the Credit Agreement) and other rights, interests or assets (whether tangible or intangible) reasonably necessary for the operations of its business. The negative covenants restrict or limit the Company’s ability to, among other things and subject to certain exceptions contained in the Credit Agreement, incur new indebtedness; create liens on assets; engage in certain fundamental corporate changes, such as mergers or acquisitions, or changes to the Company’s business activities; make certain Investments or Restricted Payments (each as defined in the Credit Agreement); change the Company’s fiscal year; pay dividends; repay other certain indebtedness; engage in certain affiliate transactions; or enter into, amend or terminate any other agreements that has the impact of restricting the Company’s ability to make loan repayments under the Credit Agreement. In addition, the Company must (i) at all times prior to the Maturity Date, maintain minimum Liquidity (as defined in the Credit Agreement) of $5.0 million and (ii) as of each quarterly calculation date set forth in the Credit Agreement, maintain revenue that is not less than the amounts specified in the Credit Agreement. The Credit Agreement also contains certain customary Events of Default which include, among others, non-payment of principal, interest, or fees, violation of covenants, inaccuracy of representations and warranties, bankruptcy and insolvency events, material judgments, cross-defaults to material contracts, certain regulatory-related events and events constituting a change of control. The occurrence of an Event of Default could result in, among other things, the declaration that all outstanding principal and interest under the Perceptive Term Loan Facility are immediately due and payable in whole or in part. On September 28, 2026, the Company entered into the “Limited Consent with Perceptive, pursuant to the Limited Consent, the Consenting Lenders (as defined in the Limited Consent) agreed that the minimum Revenue (as defined in the Credit Agreement) covenant set forth in Section 10.02 of the Credit Agreement shall not be tested with respect to the fiscal quarters ending on or about September 30, 2026 and December 31, 2026. If the Company fails to satisfy the applicable covenant requirements and does not obtain a waiver or amendment from Perceptive in the periods tested following December 31, 2026, the lender could declare an event of default and accelerate repayment of all outstanding principal and accrued interest under the Credit Agreement.

Interest expense associated with the Perceptive Credit Agreement recorded for the three months ended September 30, 2026 was $2.1 million, of which $0.2 million was related to the amortization of debt issuance costs. Interest expense for the nine months ended September 30, 2026 was $6.2 million, of which $0.7 million was related to the amortization of debt issuance costs.

MidCap Term Loan

On May 26, 2022, the Company entered into the Credit and Security Agreement (the “MidCap Credit Agreement”) with MidCap Financial Trust (“MidCap”), as agent, and certain lender parties thereto. The MidCap Credit Agreement consisted of $40.0 million in a term loan. On November 14, 2025, the Company closed on a credit facility from Perceptive and upon closing used a portion of the proceeds to repay all borrowings under the MidCap Credit Agreement.

The MidCap term loan bore interest at a rate equal to 6.25% plus the greater of one-month Term SOFR (as defined in the MidCap Credit Agreement) or 1.0%. Interest expense associated with the MidCap Credit Facility recorded for the three months ended September 30, 2025 was $1.2 million, of which $0.1 million, was related to the amortization of debt issuance costs. Interest expense for the nine months ended September 30, 2025 was $3.6 million, of which $0.4 million was related to the amortization of debt issuance costs.

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 22,664	$ 50,845
Accounts receivable, net of allowances of $621 and $287	9,273	10,347
Inventory	11,609	11,016
Prepaid expenses and other current assets	1,054	3,373
Total current assets	44,600	75,581
Property and equipment, net	1,881	2,226
Intangible assets, net	1,074	1,359
Right-of-use assets	1,314	1,502
Other long-term assets	425	500
Restricted cash	200	250
Total assets	49,494	81,418
Current liabilities:
Accounts payable	2,394	2,309
Accrued expenses and other current liabilities	14,164	15,666
Current debt	56,299
Total current liabilities	72,857	17,975
Long-term debt		55,653
Other long-term liabilities	1,213	1,477
Total liabilities	74,070	75,105
Stockholders' (deficit) equity:
Preferred stock; $0.001 par value: 10,000,000 shares authorized; no shares issued and outstanding
Common stock; $0.001 par value: 200,000,000 shares authorized; 45,143,410 and 44,538,264 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively	45	44
Additional paid-in capital	405,694	403,739
Accumulated other comprehensive income	83	91
Accumulated deficit	(430,398)	(397,561)
Total stockholders' (deficit) equity	(24,576)	6,313
Total liabilities and stockholders' (deficit) equity	$ 49,494	$ 81,418

Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2026	Sep. 30, 2025	Sep. 30, 2026	Sep. 30, 2025
Consolidated Statements of Operations and Comprehensive Loss
Revenue	$ 18,959	$ 20,689	$ 57,309	$ 59,406
Cost of revenue (excluding amortization of intangible assets)	6,556	6,625	18,253	18,535
Amortization of intangible assets	95	95	285	285
Gross profit	12,308	13,969	38,771	40,586
Operating expenses:
Sales and marketing	13,008	15,066	45,460	48,289
General and administrative	3,003	3,948	11,221	11,910
Research and development	1,603	2,348	6,669	7,091
Other	1,984	161	2,520	403
Total operating expenses	19,598	21,523	65,870	67,693
Loss from operations	7,290	7,554	27,099	27,107
Other (expense) income:
Interest expense	(2,099)	(1,201)	(6,228)	(3,608)
Other income	190	152	713	1,010
Total other expense, net	(1,909)	(1,049)	(5,515)	(2,598)
Loss before income tax expense	(9,199)	(8,603)	(32,614)	(29,705)
Income tax expense	(103)		(223)	(85)
Net loss	$ (9,302)	$ (8,603)	$ (32,837)	$ (29,790)
Net loss per common share, basic (in dollars per share)	$ (0.16)	$ (0.19)	$ (0.57)	$ (0.66)
Net loss per common share, diluted (in dollars per share)	$ (0.16)	$ (0.19)	$ (0.57)	$ (0.66)
Weighted average common shares outstanding, basic (in shares)	57,689,149	45,421,795	57,456,519	45,351,947
Weighted average common shares outstanding, diluted (in shares)	57,689,149	45,421,795	57,456,519	45,351,947
Comprehensive loss:
Net loss	$ (9,302)	$ (8,603)	$ (32,837)	$ (29,790)
Foreign currency translation adjustment	(1)	(2)	(8)	1
Comprehensive loss	$ (9,303)	$ (8,605)	$ (32,845)	$ (29,789)

Stock-Based Compensation

9 Months Ended

Sep. 30, 2026

Stock-Based Compensation

Stock-Based Compensation

(9) Stock-Based Compensation

The Company has two equity incentive plans: the 2012 Stock Incentive Plan and the Amended and Restated 2019 Equity Incentive Plan (the “Plan”). On April 8, 2026, the Company’s board of directors approved an amendment to the Plan to increase the number of authorized shares issuable under the Plan by 3,500,000 shares. This amendment was approved by the Company’s stockholders on June 9, 2026 at the 2026 Annual Meeting. New awards can only be granted under the Plan. At September 30, 2026, 5,868,378 shares of common stock were available for future issuances under the Plan. The

Plan provides for the grant of incentive stock options, nonqualified stock options, restricted stock awards, restricted stock units and/or stock appreciation rights to employees, directors, and other persons, as determined by the Company’s board of directors. The Company estimates forfeitures that it expects will occur and adjusts expense for actual forfeitures in the periods they occur.

The Company measures employee and nonemployee stock-based awards at grant-date fair value and records compensation expense ratably over the vesting period of the award. The Company recorded stock-based compensation expense in the following expense categories of the accompanying consolidated statements of operations and comprehensive loss (in thousands):


		Three months ended September 30,				Nine months ended September 30,
		2026		2025		2026		2025
Sales and marketing		$	118	$	264	$	549	$	844
General and administrative			475		565		1,328		1,772
Research and development			33		126		178		368
Total stock‑based compensation		$	626	$	955	$	2,055	$	2,984

Stock Options

The Company’s stock options vest based on the terms in each award agreement and generally vest over four years and have a term of 10 years.

The following table summarizes stock option activity:


							Weighted
							average
				Weighted			remaining
		Number of		average exercise			contractual term
		shares		price per share			(years)
Outstanding at January 1, 2026		2,672,859		$	8.62
Granted		3,504,960			0.81
Exercised		—			—
Canceled/forfeited		(650,977)			4.64
Outstanding at September 30, 2026		5,526,842		$	4.13		6.51
Vested and expected to vest at September 30, 2026		5,235,465		$	4.31		6.33
Exercisable at September 30, 2026		2,303,608		$	8.65		2.08

Included in outstanding options at September 30, 2026 were 2,684,186 stock options granted outside of the Plan. These grants were made pursuant to the Nasdaq inducement grant exception in accordance with Nasdaq listing rule 5635(c)(4). At September 30, 2026, the aggregate intrinsic value of outstanding options was $1.1 million and exercisable options was $0.1 million.

The weighted average grant-date fair value per share of options granted was $0.49 during the nine months ended September 30, 2026. The aggregate intrinsic value of options exercised was $0 for the nine months ended September 30, 2026. At September 30, 2026, the total unrecognized compensation expense related to unvested employee and nonemployee stock option awards was $1.5 million, which is expected to be recognized in expense over a weighted-average period of approximately 3.6 years.

The fair value of each option was estimated on the date of grant using the Black-Scholes option pricing model and the weighted average assumptions in the table below:


		Nine months ended September 30,
		2026
Expected dividend yield		—
Expected volatility		68.0	%
Risk‑free interest rate		4.28	%
Expected term (in years)		6.06

Restricted Stock Units

The Company has issued service-based and performance-based restricted stock units (“RSUs”). Vesting of the service-based RSUs is based on the terms in each award agreement and is generally over four years. Vesting of the performance-based RSUs is subject to continued service through 2026 and the achievement of certain performance milestones for fiscal year 2026. The amount of performance-based RSUs that will vest can range from 0% to 110% of the original number of RSUs granted. Expense for the performance-based RSUs is not recognized until the performance conditions are deemed probable of achievement. The Company has not recorded any expense related to the performance-based RSUs.

The following table summarizes the service-based RSUs for the Plan:


		Number of
		shares
Outstanding at January 1, 2026		1,104,662
Granted		1,858,735
Vested		(740,071)
Canceled/forfeited		(430,935)
Outstanding at September 30, 2026		1,792,391

The following table summarizes the performance-based RSUs for the Plan:


		Number of
		shares
Outstanding at January 1, 2026		216,500
Granted		—
Vested		—
Canceled/forfeited		(60,319)
Outstanding at September 30, 2026		156,181

Included in outstanding RSUs at September 30, 2026 were 760,010 RSUs granted outside of the Plan. These grants were made pursuant to the Nasdaq inducement grant exception in accordance with Nasdaq listing rule 5635(c)(4). The weighted average grant-date fair value per RSU granted was $0.80 during the nine months ended September 30, 2026. The aggregate intrinsic value of RSUs outstanding was $2.2 million at September 30, 2026. The total unrecognized compensation expense at September 30, 2026 related to RSUs was $1.7 million, excluding unrecognized compensation expense associated with performance-based RSUs that are not deemed probable of achievement, which is expected to be recognized in expense over a weighted-average period of approximately 2.9 years.

Stockholders' Equity

9 Months Ended

Sep. 30, 2026

Stockholders' Equity

Stockholders' Equity

(7) Stockholders’ Equity

In November 2023, the Company entered into an Equity Distribution Agreement (the “Equity Agreement”) with Piper Sandler & Co, (“Piper”) in connection with the establishment of an at-the-market offering program under which the Company may sell shares of its common stock, from time to time through Piper as sales agent, in an initial amount of up to $50.0 million. No sales have been made under the Equity Agreement since its inception.

Warrants

The Company had the following warrants outstanding to purchase common stock at September 30, 2026:


				Exercise		Expiration
		Outstanding		price		dates
Common stock warrants		8,379	$	28.65		2028
Common stock warrants		80,177		28.65		2027
Common stock warrants issued with credit agreement		2,000,000		1.11		2035
Pre-funded common stock warrants		12,623,000		0.0001		NA
		14,711,556

The following table summarizes warrant activity:


		Number of
		warrants
Outstanding at January 1, 2026		14,711,556
Granted		—
Exercised		—
Canceled/forfeited		—
Outstanding at September 30, 2026		14,711,556

- Definition

The entire disclosure for equity.

+ References

+ Details

Debt (Tables)

9 Months Ended

Sep. 30, 2026

Debt

Schedule of debt

Debt consisted of the following (in thousands):


		September 30,			December 31,
		2026			2025
Perceptive term loan		$	60,000		$	60,000
Unamortized issuance costs			(3,701)			(4,347)
Total debt		$	56,299		$	55,653

Sale of Product Line - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended			9 Months Ended
	Mar. 31, 2024	Sep. 30, 2026	Sep. 30, 2025	Mar. 31, 2024	Sep. 30, 2026	Sep. 30, 2025
Sale of Product Line
Proceeds from the sale of product line					$ 1,631	$ 1,011
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| MiMedx Group, Inc.
Sale of Product Line
Proceeds from the sale of product line	$ 5,000
Transaction \| MiMedx Group, Inc.
Sale of Product Line
Amount minimum revenue share payments receivable	3,000			$ 3,000
Variable Consideration		$ 0	$ 0		$ 0	$ 0
Transaction \| Minimum \| MiMedx Group, Inc.
Sale of Product Line
Revenue sharing payments	3,000			3,000
Variable consideration	3,000			3,000
Transaction \| Maximum \| MiMedx Group, Inc.
Sale of Product Line
Revenue sharing payments	7,000			7,000
Variable consideration	7,000			7,000
Transaction \| Disposal Group, Disposed of by Sale, Not Discontinued Operations \| MiMedx Group, Inc.
Sale of Product Line
Net carrying value	800			800
Carrying value	0			0
Consideration received for inventory on-hand	400
Consideration determined	$ 8,400			8,400
Gain on sale of product line				$ 7,600

Debt - Perceptive Term Loan and MidCap Term Loan (Details) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended		9 Months Ended
	Nov. 14, 2025	May 26, 2022	Sep. 30, 2026	Sep. 30, 2025	Sep. 30, 2026	Sep. 30, 2025	Dec. 31, 2025
Debt
Common stock, Par value (in dollars per share)			$ 0.001		$ 0.001		$ 0.001
Minimum
Debt
Prepayment premium	2.00%
Maximum
Debt
Prepayment premium	10.00%
Perceptive term loan
Debt
Maximum borrowing capacity	$ 70,000
Initial loan capacity	60,000
Additional loan capacity	$ 10,000
Maturity date	Nov. 14, 2030
Debt amount			$ 60,000		$ 60,000		$ 60,000
Variable Interest Rate (as a percent)	7.85%
Interest rate, floor (as a percent)	4.25%
Applicable margin increase	3.00%
Common stock, Par value (in dollars per share)	$ 0.001
Additional debt issuance cost	$ 1,400
Minimum liquidity	$ 5,000
Interest expenses			2,100		6,200
Amortization of debt issuance costs			$ 200		$ 700
Perceptive term loan \| Initial loan warrants
Debt
Warrants to purchase shares of the company	2,000,000
Warrants exercise price	$ 1.11
Perceptive term loan \| Perceptive additional warrants
Debt
Warrants to purchase shares of the company	333,333
Warrants exercise price	$ 1.11
Number of warrants exercised					0
MidCap term loan
Debt
Debt amount		$ 40,000
Interest Rate (as a percent)		6.25%
Variable Interest Rate (as a percent)		1.00%
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]		tela:SecuredOvernightFinancingRateSofrOneMonthTermMember
Interest expenses				$ 1,200		$ 3,600
Amortization of debt issuance costs				$ 100		$ 400

Accrued Expenses and Other Current Liabilities

9 Months Ended

Sep. 30, 2026

Accrued Expenses and Other Current Liabilities

Accrued Expenses and Other Current Liabilities

(5) Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):


		September 30,			December 31,
		2026			2025
Compensation and related benefits		$	5,717		$	7,096
Third-party and professional fees			3,927			3,525
Amounts due to contract manufacturer			2,745			3,058
Current portion of operating lease liabilities			532			524
Research and development expenses			30			27
Income/sales tax payable			849			725
Other			364			711
Total accrued expenses and other current liabilities		$	14,164		$	15,666

Background

9 Months Ended

Sep. 30, 2026

Background

Background

(1) Background

TELA Bio, Inc. (the “Company”) was incorporated in the state of Delaware on April 17, 2012 and wholly owns TELA Bio Limited, a company incorporated in the United Kingdom and is the ultimate parent of TELA Bio GmbH, a company incorporated in Germany through TELA Bio Limited. The Company is a commercial-stage medical technology company focused on providing innovative soft-tissue reconstruction solutions that optimize clinical outcomes by prioritizing the preservation and restoration of the patient’s own anatomy. OviTex Reinforced Tissue Matrix (“OviTex”), the Company’s first portfolio of products, addresses unmet needs in hernia repair and abdominal wall reconstruction by combining the benefits of biologic matrices and polymer materials while minimizing their shortcomings, at a cost-effective price. OviTex PRS Reinforced Tissue Matrix (“OviTex PRS”), the Company’s second portfolio of products, addresses unmet needs in plastic and reconstructive surgery. The Company’s principal corporate office and research facility is located in Malvern, Pennsylvania.

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2026	Sep. 30, 2025
Cash flows from operating activities:
Net loss	$ (32,837)	$ (29,790)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	512	500
Noncash interest expense	722	370
Amortization of intangible assets	285	285
Net changes in operating lease ROU assets and liabilities	(68)	323
Inventory excess and obsolescence charge	2,097	1,542
Stock-based compensation expense	2,055	2,984
Noncash general and administrative expense issued in shares	21
Income tax expense	147	85
Loss on disposal of fixed assets	18
Change in operating assets and liabilities:
Accounts receivable, net	1,043	(1,042)
Inventory	(2,712)	(228)
Prepaid expenses and other current and long-term assets	686	286
Accounts payable	90	204
Accrued expenses and other current and long-term liabilities	(1,377)	1,097
Foreign currency transaction loss	75	35
Net cash used in operating activities	(29,243)	(23,349)
Cash flows from investing activities:
Purchase of property and equipment	(185)	(357)
Proceeds from the sale of product line	1,631	1,011
Net cash provided by investing activities	1,446	654
Cash flows from financing activities:
Payment of accrued offering costs	(247)
Vesting of restricted stock units	1	1
Payment of withholding taxes related to stock-based compensation to employees	(168)	(201)
Proceeds from issuance of common stock under the employee stock purchase plan	47	105
Net cash used in financing activities	(367)	(95)
Effect of exchange rate on cash and cash equivalents	(67)	(182)
Net decrease in cash and cash equivalents and restricted cash	(28,231)	(22,972)
Cash and cash equivalents and restricted cash, beginning of period	51,095	52,935
Cash and cash equivalents and restricted cash, end of period	22,864	29,963
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	5,506	3,978
Cash paid during the period for taxes	$ 76
Supplemental disclosures of noncash investing and financing activities:
Property and equipment in accounts payable and accrued expenses and other current liabilities		$ 15

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2026	Dec. 31, 2025
Consolidated Balance Sheets
Accounts receivable, Allowance	$ 621	$ 287
Preferred stock, Par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, Par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	45,143,410	44,538,264
Common stock, shares outstanding (in shares)	45,143,410	44,538,264

Summary of Significant Accounting Policies -Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2026	Dec. 31, 2025	Sep. 30, 2025	Dec. 31, 2024
Summary of Significant Accounting Policies
Cash and cash equivalents	$ 22,664	$ 50,845	$ 29,713
Restricted cash	200	250	250
Total cash and cash equivalents and restricted cash shown in statements of cash flows	$ 22,864	$ 51,095	$ 29,963	$ 52,935

Summary of Significant Accounting Policies - Operating Expenses - Other (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2026	Sep. 30, 2025	Sep. 30, 2026	Sep. 30, 2025
Summary of Significant Accounting Policies
Severance expense	$ 1,700	$ 161	$ 2,236	$ 403
Legal expenses related to reduction in force	284		284
Total other	$ 1,984	$ 161	$ 2,520	$ 403

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2026
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Rule 10b5-1 Arrangement Modified	false
Non-Rule 10b5-1 Arrangement Modified	false

Summary of Significant Accounting Policies - Segments (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2026 USD ($)	Sep. 30, 2025 USD ($)	Sep. 30, 2026 USD ($) segment	Sep. 30, 2025 USD ($)
Segments
Number of reportable segment \| segment			1
Revenue	$ 18,959	$ 20,689	$ 57,309	$ 59,406
Research and Development:
Net loss	(9,302)	(8,603)	(32,837)	(29,790)
Single reportable segment
Segments
Revenue	18,959	20,689	57,309	59,406
Cost of revenue (excluding amortization of intangible assets and write-off of expired product)	5,586	6,124	16,552	16,623
Non cash cost of revenue (amortization of intangible assets and write-off of expired product)	1,065	596	1,986	2,197
Gross profit	12,308	13,969	38,771	40,586
Sales and marketing:
Sales and sales management	8,253	10,291	29,051	33,025
International	1,912	1,329	5,932	4,137
Other sales and marketing	2,843	3,446	10,477	11,127
Total sales and marketing	13,008	15,066	45,460	48,289
General and Administrative:
Finance and Legal	1,428	1,842	5,450	5,761
Other general and administrative	1,575	2,106	5,771	6,149
Total general and administrative	3,003	3,948	11,221	11,910
Research and Development:
Clinical	805	873	3,028	2,654
Regulatory and quality	299	468	1,387	1,334
Other research and development	499	1,007	2,254	3,103
Total research and development	1,603	2,348	6,669	7,091
Other	1,984	161	2,520	403
Other segment items	(2,012)	(1,049)	(5,738)	(2,683)
Net loss	$ (9,302)	$ (8,603)	$ (32,837)	$ (29,790)

Consolidated Statements of Stockholders' (Deficit) Equity - USD ($) $ in Thousands	Common stock	Additional paidin capital	Accumulated other comprehensive income	Accumulated deficit	Total
Balance at Beginning of period at Dec. 31, 2024	$ 39	$ 387,059	$ 90	$ (358,730)	$ 28,458
Balance at Beginning of period (in shares) at Dec. 31, 2024	39,395,712
Vesting of restricted stock units and exercise of stock options	$ 1				1
Vesting of restricted stock units and exercise of stock options (in shares)	268,601
Issuance of common stock under the employee stock purchase plan		105			105
Issuance of common stock under the employee stock purchase plan (in shares)	58,235
Shares withheld for employee taxes		(201)			(201)
Shares withheld for employee taxes (in shares)	(81,013)
Exercise of pre-funded warrant		(1)			(1)
Exercise of pre-funded warrant (in shares)	700,000
Foreign currency translation adjustment			1		1
Stock-based compensation expense		2,984			2,984
Net loss				(29,790)	(29,790)
Balance at Ending period at Sep. 30, 2025	$ 40	389,946	91	(388,520)	1,557
Balance at Ending period (in shares) at Sep. 30, 2025	40,341,535
Balance at Beginning of period at Jun. 30, 2025	$ 40	388,968	93	(379,917)	9,184
Balance at Beginning of period (in shares) at Jun. 30, 2025	39,584,178
Vesting of restricted stock units and exercise of stock options (in shares)	37,590
Issuance of common stock under the employee stock purchase plan		45			45
Issuance of common stock under the employee stock purchase plan (in shares)	30,917
Shares withheld for employee taxes		(21)			(21)
Shares withheld for employee taxes (in shares)	(11,150)
Exercise of pre-funded warrant		(1)			(1)
Exercise of pre-funded warrant (in shares)	700,000
Foreign currency translation adjustment			(2)		(2)
Stock-based compensation expense		955			955
Net loss				(8,603)	(8,603)
Balance at Ending period at Sep. 30, 2025	$ 40	389,946	91	(388,520)	1,557
Balance at Ending period (in shares) at Sep. 30, 2025	40,341,535
Balance at Beginning of period at Dec. 31, 2025	$ 44	403,739	91	(397,561)	$ 6,313
Balance at Beginning of period (in shares) at Dec. 31, 2025	44,538,264				44,538,264
Vesting of restricted stock units	$ 1				$ 1
Vesting of restricted stock units (in shares)	740,071
Issuance of common stock under the employee stock purchase plan		47			47
Issuance of common stock under the employee stock purchase plan (in shares)	63,222
Shares withheld for employee taxes		(168)			(168)
Shares withheld for employee taxes (in shares)	(225,304)
Issuance of common stock in lieu of cash retainer		21			21
Issuance of common stock in lieu of cash retainer (in shares)	27,157
Foreign currency translation adjustment			(8)		(8)
Stock-based compensation expense		2,055			2,055
Net loss				(32,837)	(32,837)
Balance at Ending period at Sep. 30, 2026	$ 45	405,694	83	(430,398)	$ (24,576)
Balance at Ending period (in shares) at Sep. 30, 2026	45,143,410				45,143,410
Balance at Beginning of period at Jun. 30, 2026	$ 45	405,101	84	(421,096)	$ (15,866)
Balance at Beginning of period (in shares) at Jun. 30, 2026	44,833,942
Vesting of restricted stock units (in shares)	350,626
Issuance of common stock under the employee stock purchase plan		20			20
Issuance of common stock under the employee stock purchase plan (in shares)	31,080
Shares withheld for employee taxes		(74)			(74)
Shares withheld for employee taxes (in shares)	(99,395)
Issuance of common stock in lieu of cash retainer		21			21
Issuance of common stock in lieu of cash retainer (in shares)	27,157
Foreign currency translation adjustment			(1)		(1)
Stock-based compensation expense		626			626
Net loss				(9,302)	(9,302)
Balance at Ending period at Sep. 30, 2026	$ 45	$ 405,694	$ 83	$ (430,398)	$ (24,576)
Balance at Ending period (in shares) at Sep. 30, 2026	45,143,410				45,143,410

Debt - Schedule of debt (Details) - USD ($) $ in Thousands	Sep. 30, 2026	Dec. 31, 2025
Debt
Unamortized issuance costs	$ (3,701)	$ (4,347)
Total debt	56,299
Total debt		55,653
Perceptive term loan
Debt
Term loan	$ 60,000	$ 60,000

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 8A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-8A

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 235
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477314/942-235-S99-2

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480738/235-10-S50-4

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-3

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(f))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 55
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482949/835-30-55-8

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69B

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69C

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69E
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69E

Reference 12: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69F
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69F

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 15: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1D
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1D

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1D
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1D

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1D
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1D

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1E

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1E

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1E

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1F
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1F

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1F
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1F

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1F
-Subparagraph (b)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1F

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1F
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1F

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I

Reference 30: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 45
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482925/835-30-45-2

Reference 31: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482900/835-30-50-1

+ Details

Accrued Expenses and Other Current Liabilities (Tables)

9 Months Ended

Sep. 30, 2026

Accrued Expenses and Other Current Liabilities

Schedule of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):


		September 30,			December 31,
		2026			2025
Compensation and related benefits		$	5,717		$	7,096
Third-party and professional fees			3,927			3,525
Amounts due to contract manufacturer			2,745			3,058
Current portion of operating lease liabilities			532			524
Research and development expenses			30			27
Income/sales tax payable			849			725
Other			364			711
Total accrued expenses and other current liabilities		$	14,164		$	15,666