# EDGAR Filing Document

**Accession Number:** 0001027838
**File Stem:** 0001558370-23-001566
**Filing Date:** 2023-2
**Character Count:** 46811
**Document Hash:** 34b26499a6addd54ec6ec9665f0000ae
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001558370-23-001566.hdr.sgml**: 20230221

**ACCESSION NUMBER**: 0001558370-23-001566

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20230220

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230221

**DATE AS OF CHANGE**: 20230221

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** TACTILE SYSTEMS TECHNOLOGY INC
- **CENTRAL INDEX KEY:** 0001027838
- **STANDARD INDUSTRIAL CLASSIFICATION:** SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37799
- **FILM NUMBER:** 23645222

**BUSINESS ADDRESS:**
- **STREET 1:** 1331 TYLER STREET NE STE 200
- **CITY:** MINNEAPOLIS
- **STATE:** MN
- **ZIP:** 55413
- **BUSINESS PHONE:** 866-435-3948

**MAIL ADDRESS:**
- **STREET 1:** 1331 TYLER STREET NE STE 200
- **CITY:** MINNEAPOLIS
- **STATE:** MN
- **ZIP:** 55413

?xml version='1.0' encoding='UTF-8'?

**UNITED STATESSECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of**

**the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported) **February 20, 2023**

**TACTILE SYSTEMS TECHNOLOGY, INC.**

(Exact name of registrant as specified in its charter)

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| | | |
|:---|:---|:---|
| **Delaware** | **001-37799** | **41-1801204** |
| (State or other jurisdiction of | (Commission | (I.R.S. Employer |
| incorporation) | File Number) | Identification No.) |

---

**3701 Wayzata Blvd, Suite 300, Minneapolis, MN 55416**

(Address of principal executive offices) (Zip Code)

**(612) 355-5100**

(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities registered pursuant to Section 12(b) of the Act:**

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Title of each class** | &nbsp;&nbsp;**Trading Symbol(s)** | &nbsp;&nbsp;**Name of each exchange on which registered** |
| &nbsp;&nbsp;Common Stock, Par Value $0.001 Per Share | &nbsp;&nbsp;TCMD | &nbsp;&nbsp;The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). ☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 2.02. Results of Operations and Financial Condition.**

On February 21, 2023, we issued a press release disclosing our results of operations and financial condition for our most recently completed fiscal quarter and fiscal year. A copy of the press release is attached hereto as Exhibit 99.1.

In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02, including Exhibit 99.1, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference in that filing.

**Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.**

On February 20, 2023, Brent Moen, the Company's Chief Financial Officer, notified the Company of his intention to retire as Chief Financial Officer in 2023. Mr. Moen's resignation is for personal reasons and not due to any disagreement with the Company on any matter, including matters related to the Company's operations, policies, practices, financial reporting or controls. The Board of Directors has initiated a process to identify a successor. Mr. Moen plans to continue as the Chief Financial Officer until his successor is appointed.

**Item 7.01. Regulation FD Disclosure.**

On February 21, 2023, the Company issued a press release related to the matter discussed in Item 5.02 above. A copy of this press release is furnished as Exhibit 99.2 to this Current Report on Form 8-K. The information in Exhibit 99.2 shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference in that filing.

**Item 9.01. Financial Statements and Exhibits.**

(d) Exhibits

**EXHIBIT INDEX**

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| | |
|:---|:---|
| **ExhibitNo.** | **Description** |
| 99.1 | [Press Release dated February 21, 2023 (Earnings Release)](tcmd-20230220xex99d1.htm) |
| 99.2 | [Press Release dated February 21, 2023 (CFO Release)](tcmd-20230220xex99d2.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | TACTILE SYSTEMS TECHNOLOGY, INC. | TACTILE SYSTEMS TECHNOLOGY, INC. |
| Date: February 21, 2023 | By: | /s/ *Brent A. Moen* |
|  |  | Brent A. Moen |
|  |  | Chief Financial Officer |

---

## Exhibit 99.1

Exhibit 99.1

**TACTILE SYSTEMS TECHNOLOGY, INC. REPORTS FOURTH QUARTER AND FULL YEAR 2022 FINANCIAL RESULTS; INTRODUCES FULL YEAR 2023 OUTLOOK**

***Fourth Quarter Revenue Increased 20% Year-Over-Year; Full Year Revenue Increased 19% Year-Over-Year***

MINNEAPOLIS, MN, February 21, 2023 – Tactile Systems Technology, Inc. ("Tactile Medical") (Nasdaq: TCMD), a medical technology company providing therapies for people with chronic disorders, today reported financial results for the fourth quarter and full year ended December 31, 2022.

**Fourth Quarter 2022 Summary:**

● Total revenue increased 20% year-over-year to $73.9 million, compared to $61.7 million in fourth quarter 2021

● Revenue from lymphedema products increased 14% year-over-year to $65.8 million

● Revenue from airway clearance products increased 90% year-over-year to $8.1 million

● Operating income of $7.9 million, compared to $3.8 million in fourth quarter 2021

● Non-GAAP operating income of $9.5 million, compared to $6.4 million in fourth quarter 2021

● Net income of $4.6 million, compared to net loss of $7.5 million in fourth quarter 2021

● Non-GAAP net income of $5.9 million, compared to non-GAAP net loss of $5.5 million in fourth quarter 2021

● Adjusted EBITDA of $12.1 million, compared to $9.5 million in fourth quarter 2021

**Full Year 2022 Summary:**

● Total revenue increased 19% year-over-year to $246.8 million, compared to $208.1 million in 2021

● Revenue from lymphedema products increased 5% year-over-year to $212.3 million, compared to $202.9 million in 2021

● Revenue from airway clearance products, acquired on September 8, 2021, totaled $34.5 million in 2022, compared to $5.1 million in 2021

● Operating loss of $12.8 million, compared to $1.8 million in 2021

● Non-GAAP operating income of $6.2 million, compared to $5.3 million in 2021

● Net loss of $17.9 million, compared to $11.8 million in 2021

● Non-GAAP net loss of $3.6 million, compared to $6.5 million in 2021

● Adjusted EBITDA of $18.3 million, compared to $17.7 million in 2021

**Highlights Subsequent to Quarter End:**

● On January 5, 2023, the Company announced the appointment of Carmen Volkart to the Company's Board of Directors

● On February 20, 2023, Brent Moen, Chief Financial Officer, announced his intention to retire in 2023

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"We are pleased with how we finished 2022, with total revenue growth in the fourth quarter of 20%, coupled with significant year-over-year improvements in fourth quarter profitability," said Dan Reuvers, President and Chief Executive Officer of Tactile Medical. "Our revenue growth was driven by strong contributions from both our lymphedema and airway clearance products, as we continued to benefit from the improving productivity of our lymphedema salesforce, the introduction of our Flexitouch ComfortEase lower extremity garments and solid demand from our DME channel partners for our AffloVest airway clearance therapy."

Mr. Reuvers continued, "Our 2023 guidance reflects our progress in 2022 and cautious optimism as we target a return to double-digit organic revenue growth on an annual basis, while continuing to enhance our profitability profile. In 2023, we are focused on improving productivity within our lymphedema salesforce, expanding our reach with our DME partners, developing and introducing additional new products and enhancing our operational efficiency. In doing so, we aim to extend our leadership in our end markets as we progress towards achieving our stated 2025 goals for long-term, profitable growth."

**Fourth Quarter 2022 Financial Results**

Total revenue in the fourth quarter of 2022 increased $12.2 million, or 20%, to $73.9 million, compared to $61.7 million in the fourth quarter of 2021. The increase in total revenue was attributable to an increase of $8.3 million, or 14%, in sales and rentals of the lymphedema product line, and an increase of $3.9 million, or 90%, in sales of the airway clearance product line compared to the fourth quarter of 2021.

Gross profit in the fourth quarter of 2022 increased $7.3 million, or 16%, to $52.1 million, compared to $44.8 million in the fourth quarter of 2021. Gross margin was 70.5% of revenue, compared to 72.6% of revenue in the fourth quarter of 2021. Non-GAAP gross margin was 71.2% of revenue, compared to 73.3% of revenue in the fourth quarter of 2021.

Operating expenses in the fourth quarter of 2022 increased $3.2 million, or 8%, to $44.2 million, compared to $41.0 million in the fourth quarter of 2021.

Operating income was $7.9 million in the fourth quarter of 2022, compared to $3.8 million in the fourth quarter of 2021. Non-GAAP operating income in the fourth quarter of 2022 was $9.5 million, compared to $6.4 million in the fourth quarter of 2021.

Other expense was $1.0 million in the fourth quarter of 2022, compared to $0.4 million in the fourth quarter of 2021.

Income tax expense was $2.3 million in the fourth quarter of 2022, compared to $10.9 million in the fourth quarter of 2021.

Net income in the fourth quarter of 2022 was $4.6 million, or $0.23 per diluted share, compared to net loss of $7.5 million, or $0.38 per diluted share, in the fourth quarter of 2021. Non-GAAP net income in the fourth quarter of 2022 was $5.9 million, compared to non-GAAP net loss $5.5 million in the fourth quarter of 2021.

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Weighted average shares used to compute diluted net income (loss) per share were 20.3 million and 19.8 million for the fourth quarters of 2022 and 2021, respectively.

Adjusted EBITDA was $12.1 million in the fourth quarter of 2022, compared to $9.5 million in the fourth quarter of 2021.

**Full Year 2022 Financial Results:**

Total revenue for the twelve months ended December 31, 2022, increased $38.7 million, or 19%, to $246.8 million, compared to $208.1 million for the twelve months ended December 31, 2021. The increase in revenue was attributable to an increase of $29.4 million in sales of the airway clearance product line, and an increase of $9.4 million, or 5%, in sales and rentals of the lymphedema product line.

Net loss for the twelve months ended December 31, 2022, was $17.9 million, or $0.89 per diluted share, compared to $11.8 million, or $0.60 per diluted share, for the twelve months ended December 31, 2021. Non-GAAP net loss for the twelve months ended December 31, 2022, was $3.6 million, compared to $6.5 million for the twelve months ended December 31, 2021.

Weighted average shares used to compute diluted net loss per share were 20.1 million and 19.8 million for the twelve months ended December 31, 2022 and 2021, respectively.

Adjusted EBITDA was $18.3 million in the twelve months ended December 31, 2022, compared to $17.7 million in the twelve months ended December 31, 2021.

**Balance Sheet Summary** 

As of December 31, 2022, the Company had $21.9 million in cash and cash equivalents and $49.0 million of outstanding borrowings under its credit agreement, compared to $28.2 million in cash and cash equivalents and $55.0 million of outstanding borrowings under its credit agreement as of December 31, 2021.

**2023 Financial Outlook**

The Company expects full year 2023 total revenue in the range of $269.0 million to $273.0 million, representing growth of approximately 9% to 11% year-over-year, compared to total revenue of $246.8 million in 2022.

**Conference Call**

Management will host a conference call at 8:00 a.m. Eastern Time on February 21, 2023, to discuss the results of the quarter and the fiscal year with a question-and-answer session. Those who would like to participate may dial 877-407-3088 (201-389-0927 for international callers) and provide access code 13736241. A live webcast of the call will also be provided on the investor relations section of the Company's website at investors.tactilemedical.com.

For those unable to participate, a replay of the call will be available for two weeks at 877-660-6853 (201-612-7415 for international callers); access code 13736241. The webcast will be archived at investors.tactilemedical.com.

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**About Tactile Systems Technology, Inc. (DBA Tactile Medical)**

Tactile Medical is a leader in developing and marketing at-home therapies for people suffering from underserved, chronic conditions including lymphedema, lipedema, chronic venous insufficiency and chronic pulmonary disease by helping them live better and care for themselves at home. The company collaborates with clinicians to expand clinical evidence, raise awareness, increase access to care, reduce overall healthcare costs and improve the quality of life for tens of thousands of patients each year.

**Legal Notice Regarding Forward-Looking Statements**

This release contains forward-looking statements. Forward-looking statements are generally identifiable by the use of words like "may," "will," "should," "could," "expect," "anticipate," "estimate," "believe," "intend," "continue," "confident," "outlook," "guidance," "project," "goals," "look forward," "poised," "designed," "plan," "return," "focused," "prospects" or "remain" or the negative of these words or other variations on these words or comparable terminology. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties outside of the Company's control that can make such statements untrue, including, but not limited to, the impacts of inflation, rising interest rates or a recession; the adequacy of the Company's liquidity to pursue its business objectives; the Company's ability to obtain reimbursement from third-party payers for its products; adverse economic conditions or intense competition; price increases for supplies and components; wage and component price inflation; loss of a key supplier; entry of new competitors and products; compliance with and changes in federal, state and local government regulation; loss or retirement of key executives, including prior to identifying a successor; technological obsolescence of the Company's products; technical problems with the Company's research and products; the Company's ability to expand its business through strategic acquisitions; the Company's ability to integrate acquisitions and related businesses; the impacts of the COVID-19 pandemic on the Company's business, financial condition and results of operations, and the Company's inability to mitigate such impacts; the effects of current and future U.S. and foreign trade policy and tariff actions; or the inability to carry out research, development and commercialization plans. In addition, other factors that could cause actual results to differ materially are discussed in the Company's filings with the SEC. Investors and security holders are urged to read these documents free of charge on the SEC's website at http://www.sec.gov. The Company undertakes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.

**Use of Non-GAAP Financial Measures**

This press release includes the non-GAAP financial measures of Adjusted EBITDA, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), and non-GAAP net income (loss), which differ from financial measures calculated in accordance with U.S. generally accepted accounting principles ("GAAP").

Adjusted EBITDA in this release represents net income or loss, plus interest expense, net, or less interest income, net, less income tax benefit or plus income tax expense, plus depreciation and amortization, plus stock-based compensation expense, plus impairment charges and inventory write-offs, plus acquisition costs, plus litigation defense costs, plus or minus the change in fair value of

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earn-out, and plus executive transition costs. Non-GAAP gross profit in this release represents gross profit plus non-cash intangible amortization expense, inventory write-offs, and inventory purchase price adjustments. Non-GAAP gross margin in this release represents non-GAAP gross profit divided by revenue. Non-GAAP operating income (loss) in this release represents operating income (loss) adjusted for non-cash intangible amortization expense, inventory write-offs, inventory purchase price adjustments, acquisition costs and expenses, change in fair value of earn-out, litigation defense costs and executive transition expenses. Non-GAAP net income (loss) represents net income (loss) adjusted for non-cash intangible amortization expense, inventory write-offs, inventory purchase price adjustments, acquisition costs and expenses, change in fair value of earn-out, litigation defense costs and executive transition expenses and adjusted for the income tax effect on reconciling items. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures are included in this press release.

These non-GAAP financial measures are presented because the Company believes they are useful indicators of its operating performance. Management uses these measures principally as measures of the Company's operating performance and for planning purposes, including the preparation of the Company's annual operating plan and financial projections. The Company believes these measures are useful to investors as supplemental information and because they are frequently used by analysts, investors and other interested parties to evaluate companies in its industry. The Company also believes these non-GAAP financial measures are useful to its management and investors as a measure of comparative operating performance from period to period. In addition, Adjusted EBITDA is used as a performance metric in the Company's compensation program.

The non-GAAP financial measures presented in this release should not be considered as an alternative to, or superior to, their respective GAAP financial measures, as measures of financial performance or cash flows from operations as a measure of liquidity, or any other performance measure derived in accordance with GAAP, and they should not be construed to imply that the Company's future results will be unaffected by unusual or non-recurring items. In addition, Adjusted EBITDA is not intended to be a measure of free cash flow for management's discretionary use, as it does not reflect certain cash requirements such as tax payments, debt service requirements, capital expenditures and certain other cash costs that may recur in the future. Adjusted EBITDA contains certain other limitations, including the failure to reflect our cash expenditures, cash requirements for working capital needs and cash costs to replace assets being depreciated and amortized. In evaluating non-GAAP financial measures, you should be aware that in the future the Company may incur expenses that are the same as or similar to some of the adjustments in this presentation. The Company's presentation of non-GAAP financial measures should not be construed to imply that its future results will be unaffected by any such adjustments. Management compensates for these limitations by primarily relying on the Company's GAAP results in addition to using non-GAAP financial measures on a supplemental basis. The Company's definition of these non-GAAP financial measures is not necessarily comparable to other similarly titled captions of other companies due to different methods of calculation.

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| | | |
|:---|:---|:---|
| **Tactile Systems Technology, Inc.** | **Tactile Systems Technology, Inc.** | **Tactile Systems Technology, Inc.** |
| **Consolidated Balance Sheets** | **Consolidated Balance Sheets** | **Consolidated Balance Sheets** |
|  | **December 31,** | **December 31,** |
| (In thousands, except share and per share data) | **2022** | **2021** |
| ***Assets*** |  |  |
| **Current assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $21929 | $28229 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 54826 | 49478 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net investment in leases | 16130 | 12482 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 23124 | 19217 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 3754 | 4141 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 119763 | 113547 |
| **Non-current assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 6077 | 6750 |
| &nbsp;&nbsp;&nbsp;&nbsp;Right of use operating lease assets | 21322 | 23984 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible assets, net | 50375 | 54081 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 31063 | 31063 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, non-current | 23061 | 12847 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-current assets | 3335 | 1998 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-current assets | 135233 | 130723 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $254996 | $244270 |
| ***Liabilities and Stockholders' Equity*** |  |  |
| **Current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $9984 | $5023 |
| &nbsp;&nbsp;&nbsp;&nbsp;Note payable | 2968 | 2960 |
| &nbsp;&nbsp;&nbsp;&nbsp;Earn-out, current | 13050 | 3250 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued payroll and related taxes | 17100 | 12139 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | 9240 | 5262 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | 2336 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | 2500 | 2506 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 7152 | 3305 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 64330 | 34461 |
| **Non-current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Revolving line of credit, non-current | 24916 | 24857 |
| &nbsp;&nbsp;&nbsp;&nbsp;Note payable, non-current | 20979 | 26933 |
| &nbsp;&nbsp;&nbsp;&nbsp;Earn-out, non-current |  | 2950 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued warranty reserve, non-current | 2207 | 3108 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable, non-current | 298 | 348 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities, non-current | 20866 | 23354 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes |  | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-current liabilities | 69266 | 81582 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | 133596 | 116043 |
| **Stockholders' equity:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued and outstanding as of December 31, 2022 and December 31, 2021 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.001 par value, 300,000,000 shares authorized; 20,252,677 shares issued and outstanding as of December 31, 2022; 19,877,786 shares issued and outstanding as of December 31, 2021 | 20 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 131001 | 119962 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Accumulated deficit) retained earnings | (9621) | 8245 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total stockholders' equity** | 121400 | 128227 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and stockholders' equity** | $254996 | $244270 |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Tactile Systems Technology, Inc.** | **Tactile Systems Technology, Inc.** | **Tactile Systems Technology, Inc.** | **Tactile Systems Technology, Inc.** | **Tactile Systems Technology, Inc.** |
| **Consolidated Statements of Operations** | **Consolidated Statements of Operations** | **Consolidated Statements of Operations** | **Consolidated Statements of Operations** | **Consolidated Statements of Operations** |
|  | **Three Months Ended** | **Three Months Ended** | **Year Ended**  | **Year Ended**  |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
| (In thousands, except share and per share data) | **2022** | **2021** | **2022** | **2021** |
| **Revenue** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales revenue | $63365 | $53699 | $211345 | $177914 |
| &nbsp;&nbsp;&nbsp;&nbsp;Rental revenue | 10535 | 8029 | 35440 | 30143 |
| Total revenue | 73900 | 61728 | 246785 | 208057 |
| **Cost of revenue** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of sales revenue | 18253 | 13797 | 59619 | 50222 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of rental revenue | 3550 | 3121 | 11190 | 9622 |
| Total cost of revenue | 21803 | 16918 | 70809 | 59844 |
| **Gross profit** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit - sales revenue | 45112 | 39902 | 151726 | 127692 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit - rental revenue | 6985 | 4908 | 24250 | 20521 |
| Gross profit | 52097 | 44810 | 175976 | 148213 |
| **Operating expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 27083 | 24826 | 106418 | 86775 |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 2139 | 1774 | 7088 | 5659 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reimbursement, general and administrative | 13427 | 14000 | 60796 | 56802 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible asset amortization and earn-out | 1598 | 445 | 14432 | 739 |
| Total operating expenses | 44247 | 41045 | 188734 | 149975 |
| **Income (loss) from operations** | 7850 | 3765 | (12758) | (1762) |
| Other expense | (950) | (377) | (2715) | (531) |
| **Income (loss) before income taxes** | 6900 | 3388 | (15473) | (2293) |
| Income tax expense | 2279 | 10883 | 2393 | 9518 |
| **Net income (loss)** | $4621 | $(7495) | $(17866) | $(11811) |
| Net income (loss) per common share |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.23  | $(0.38) | $(0.89) | $(0.60) |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $0.23  | $(0.38) | $(0.89) | $(0.60) |
| Weighted-average common shares used to compute net income (loss) per common share |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 20204479 | 19790838 | 20067969 | 19719485 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 20293825 | 19790838 | 20067969 | 19719485 |

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| | | |
|:---|:---|:---|
| **Tactile Systems Technology, Inc.** | **Tactile Systems Technology, Inc.** | **Tactile Systems Technology, Inc.** |
| **Consolidated Statements of Cash Flows** | **Consolidated Statements of Cash Flows** | **Consolidated Statements of Cash Flows** |
|  | **Year Ended December 31,**  | **Year Ended December 31,**  |
| (In thousands) | **2022** | **2021** |
| **Cash flows from operating activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(17866) | $(11811) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 6268 | 3681 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (32) | 10230 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 9600 | 10173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of property and equipment and intangibles | 20 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of earn-out liability | 11850 | (200) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities, net of acquisition: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (5348) | (5629) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment in leases | (3648) | (1774) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (3907) | 972 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes | 2270 | (2294) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (950) | (1489) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Right of use operating lease assets | 168 | 614 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, non-current | (10214) | (3414) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 4961 | 826 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued payroll and related taxes | 4961 | 551 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | 7076 | 2175 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 5209 | 2631 |
| **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments related to acquisition |  | (79829) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (1780) | (2103) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of property and equipment | 11 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible assets expenditures | (140) | (252) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (1909) | (82184) |
| **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of note payable |  | 30000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from revolving line of credit |  | 25000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment on earn-out | (5000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments on note payable | (6000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments of deferred debt issuance costs | (39) | (188) |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxes paid for net share settlement of performance and restricted stock units |  | (1173) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from exercise of common stock options | 153 | 3976 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the issuance of common stock from the employee stock purchase plan | 1286 | 2312 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by financing activities | (9600) | 59927 |
| **Net decrease in cash and cash equivalents** | (6300) | (19626) |
| Cash and cash equivalents – beginning of period | 28229 | 47855 |
| Cash and cash equivalents – end of period | $21929 | $28229 |
| **Supplemental cash flow disclosure** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash paid for interest | $2186 | $130 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash paid for taxes | $44 | $1593 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures incurred but not yet paid | $38 | $23 |

---

------

The following table summarizes revenue by product line for the three and twelve months ended December 31, 2022 and 2021:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** | **Year Ended** | **Year Ended** |
| | **December 31,** | **December 31,** | **December 31,** | **December 31,** | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
| <br>(In thousands) | **2022** | **2022** | **2021** | **2021** | **2022** | **2022** | **2021** | **2021** |
| **Revenue** |  |  |  |  |  |  |  |  |
| Lymphedema products | $| 65764 | $| 57445 | $| 212266 | $| 202913 |
| Airway clearance products |  | 8136 |  | 4283 |  | 34519 |  | 5144 |
| &nbsp;&nbsp;Total | $ | 73900 | $ | 61728 | $ | 246785 | $ | 208057 |
| **Percentage of total revenue** |  |  |  |  |  |  |  |  |
| Lymphedema products |  | 89% |  | 93% |  | 86% |  | 98% |
| Airway clearance products |  | 11% |  | 7% |  | 14% |  | 2% |
| &nbsp;&nbsp;Total |  | 100% |  | 100% |  | 100% |  | 100% |

---

The following table contains a reconciliation of gross margin to non-GAAP gross margin:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Tactile Systems Technology, Inc.** | **Tactile Systems Technology, Inc.** | **Tactile Systems Technology, Inc.** | **Tactile Systems Technology, Inc.** | **Tactile Systems Technology, Inc.** |
| **Reconciliation of Gross Margin to Non-GAAP Gross Margin** | **Reconciliation of Gross Margin to Non-GAAP Gross Margin** | **Reconciliation of Gross Margin to Non-GAAP Gross Margin** | **Reconciliation of Gross Margin to Non-GAAP Gross Margin** | **Reconciliation of Gross Margin to Non-GAAP Gross Margin** |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|  | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
| (Dollars in thousands) | **2022** | **2021** | **2022** | **2021** |
| Revenue | $73900 | $61728 | $246785 | $208057 |
| Gross profit, as reported | $52097 | $44810 | $175976 | $148213 |
| *Gross margin, as reported* | *70.5%* | *72.6%* | *71.3%* | *71.2%* |
| Reconciling items affecting gross margin: |  |  |  |  |
| &nbsp;&nbsp;Non-cash intangible amortization expense | $314 | $308 | $1247 | $412 |
| &nbsp;&nbsp;Inventory write-offs | 215 |  | 215 | 588 |
| &nbsp;&nbsp;Inventory purchase price adjustments |  | 150 |  | 200 |
| Non-GAAP gross profit | $52626 | $45268 | $177438 | $149413 |
| *Non-GAAP gross margin* | *71.2%* | *73.3%* | *71.9%* | *71.8%* |

---

------

The following table contains a reconciliation of GAAP operating income (loss) to non-GAAP operating income:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Tactile Systems Technology, Inc.** | **Tactile Systems Technology, Inc.** | **Tactile Systems Technology, Inc.** | **Tactile Systems Technology, Inc.** | **Tactile Systems Technology, Inc.** |
| **Reconciliation of GAAP Operating Income (Loss) to Non-GAAP Operating Income** | **Reconciliation of GAAP Operating Income (Loss) to Non-GAAP Operating Income** | **Reconciliation of GAAP Operating Income (Loss) to Non-GAAP Operating Income** | **Reconciliation of GAAP Operating Income (Loss) to Non-GAAP Operating Income** | **Reconciliation of GAAP Operating Income (Loss) to Non-GAAP Operating Income** |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|  | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
| (Dollars in thousands) | **2022** | **2021** | **2022** | **2021** |
| GAAP operating income (loss) | $7850 | $3765 | $(12758) | $(1762) |
| **Reconciling items affecting operating income (loss):** |  |  |  |  |
| &nbsp;&nbsp;Non-cash intangible amortization expense impacting gross profit | $314 | $308 | $1247 | $412 |
| &nbsp;&nbsp;Inventory write-offs | 215 |  | 215 | 588 |
| &nbsp;&nbsp;Inventory purchase price adjustments |  | 150 |  | 200 |
| &nbsp;&nbsp;Non-cash intangible amortization expense impacting operating expenses | 646 | 645 | 2582 | 939 |
| &nbsp;&nbsp;Acquisition costs & expenses |  | 112 |  | 886 |
| &nbsp;&nbsp;Change in fair value of earn-out | 952 | (200) | 11850 | (200) |
| &nbsp;&nbsp;Litigation defense costs | (447) | 1318 | 2830 | 3669 |
| &nbsp;&nbsp;Executive transition expenses | (10) | 340 | 280 | 526 |
| Non-GAAP operating income: | $9520 | $6438 | $6246 | $5258 |

---

The following table contains a reconciliation of GAAP net income (loss) to non-GAAP net income (loss):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Tactile Systems Technology, Inc.** | **Tactile Systems Technology, Inc.** | **Tactile Systems Technology, Inc.** | **Tactile Systems Technology, Inc.** | **Tactile Systems Technology, Inc.** |
| **Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss)** | **Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss)** | **Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss)** | **Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss)** | **Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss)** |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|  | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
| (Dollars in thousands) | **2022** | **2021** | **2022** | **2021** |
| GAAP net income (loss) | $4621 | $(7495) | $(17866) | $(11811) |
| **Reconciling items affecting net income (loss):** |  |  |  |  |
| &nbsp;&nbsp;Non-cash intangible amortization expense impacting gross profit | $314 | $308 | $1247 | $412 |
| &nbsp;&nbsp;Inventory write-offs | 215 |  | 215 | 588 |
| &nbsp;&nbsp;Inventory purchase price adjustments |  | 150 |  | 200 |
| &nbsp;&nbsp;Non-cash intangible amortization expense impacting operating expenses | 646 | 645 | 2582 | 939 |
| &nbsp;&nbsp;Acquisition costs & expenses |  | 112 |  | 886 |
| &nbsp;&nbsp;Change in fair value of earn-out | 952 | (200) | 11850 | (200) |
| &nbsp;&nbsp;Litigation defense costs | (447) | 1318 | 2830 | 3669 |
| &nbsp;&nbsp;Executive transition expenses | (10) | 340 | 280 | 526 |
| &nbsp;&nbsp;Income tax expense on reconciling items\* | (418) | (668) | (4751) | (1755) |
| Non-GAAP net income (loss) | $5873 | $(5490) | $(3613) | $(6546) |
| &nbsp;&nbsp;*\* The effect of income tax on the reconciling items is estimated using the Company's effective statutory tax rate.* | &nbsp;&nbsp;*\* The effect of income tax on the reconciling items is estimated using the Company's effective statutory tax rate.* | &nbsp;&nbsp;*\* The effect of income tax on the reconciling items is estimated using the Company's effective statutory tax rate.* | &nbsp;&nbsp;*\* The effect of income tax on the reconciling items is estimated using the Company's effective statutory tax rate.* | &nbsp;&nbsp;*\* The effect of income tax on the reconciling items is estimated using the Company's effective statutory tax rate.* |

---

------

The following table contains a reconciliation of net income (loss) to Adjusted EBITDA for the three and twelve months ended December 31, 2022 and 2021, as well as the dollar and percentage change between the comparable periods:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Tactile Systems Technology, Inc.** | **Tactile Systems Technology, Inc.** | **Tactile Systems Technology, Inc.** | **Tactile Systems Technology, Inc.** | **Tactile Systems Technology, Inc.** | **Tactile Systems Technology, Inc.** | **Tactile Systems Technology, Inc.** |
| **Reconciliation of Net Income (Loss) to Non-GAAP Adjusted EBITDA** | **Reconciliation of Net Income (Loss) to Non-GAAP Adjusted EBITDA** | **Reconciliation of Net Income (Loss) to Non-GAAP Adjusted EBITDA** | **Reconciliation of Net Income (Loss) to Non-GAAP Adjusted EBITDA** | **Reconciliation of Net Income (Loss) to Non-GAAP Adjusted EBITDA** | **Reconciliation of Net Income (Loss) to Non-GAAP Adjusted EBITDA** | **Reconciliation of Net Income (Loss) to Non-GAAP Adjusted EBITDA** |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|  | **Three Months Ended** | **Three Months Ended** | **Increase** | **Year Ended** | **Year Ended** | **Increase** |
|  | **December 31,** | **December 31,** | **(Decrease)** | **December 31,** | **December 31,** | **(Decrease)** |
| (Dollars in thousands) | **2022** | **2021** | $**%** | **2022** | **2021** | $**%** |
| **Net income (loss)** | $4621 | $(7495) | (162)% | $(17866) | $(11811) | 51% |
| &nbsp;&nbsp;Interest expense, net | 950 | 378 | 151% | 2728 | 499 | N.M. |
| &nbsp;&nbsp;Income tax expense | 2279 | 10883 | (79)% | 2393 | 9518 | (75)% |
| &nbsp;&nbsp;Depreciation and amortization | 1597 | 1531 | 4% | 6267 | 3681 | 70% |
| &nbsp;&nbsp;Stock-based compensation | 1919 | 2470 | (22)% | 9600 | 10173 | (6)% |
| &nbsp;&nbsp;Impairment charges and inventory write-offs | 215 |  | —% | 215 | 588 | (63)% |
| &nbsp;&nbsp;Acquisition costs |  | 262 | (100)% |  | 1086 | (100)% |
| &nbsp;&nbsp;Change in fair value of earn-out | 952 | (200) | N.M. | 11850 | (200) | N.M. |
| &nbsp;&nbsp;Litigation defense costs | (447) | 1318 | (134)% | 2830 | 3669 | (23)% |
| &nbsp;&nbsp;Executive transition costs | (10) | 340 | (103)% | 280 | 526 | (47)% |
| **Adjusted EBITDA** | $12076 | $9487 | 27% | $18297 | $17729 | 3% |

---

**Investor Inquiries:**

Mike Piccinino, CFA

ICR Westwicke

443-213-0500

investorrelations@tactilemedical.com

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## Exhibit 99.2

**Exhibit 99.2**

**TACTILE SYSTEMS TECHNOLOGY, INC. ANNOUNCES CHIEF FINANCIAL OFFICER TO RETIRE IN 2023**

MINNEAPOLIS, MN, February 21, 2023 – Tactile Systems Technology, Inc. ("Tactile Medical"; the "Company") (Nasdaq: TCMD), a medical technology company providing therapies for people with chronic disorders, today announced that Brent Moen has communicated his intention to retire as Chief Financial Officer in 2023.

Mr. Moen's resignation is for personal reasons and not due to any disagreement with the Company on any matter, including matters related to the Company's operations, policies, practices, financial reporting or controls. The Board of Directors has initiated a process to identify a successor. Mr. Moen plans to continue as the Chief Financial Officer until his successor is appointed.

**About Tactile Systems Technology, Inc. (DBA Tactile Medical)**

Tactile Medical is a leader in developing and marketing at-home therapies for people suffering from underserved, chronic conditions including lymphedema, lipedema, chronic venous insufficiency and chronic pulmonary disease by helping them live better and care for themselves at home. The company collaborates with clinicians to expand clinical evidence, raise awareness, increase access to care, reduce overall healthcare costs and improve the quality of life for tens of thousands of patients each year.

**Legal Notice Regarding Forward-Looking Statements**

This release contains forward-looking statements. Forward-looking statements are generally identifiable by the use of words like "may," "will," "should," "could," "expect," "anticipate," "estimate," "believe," "intend," "continue," "confident," "outlook," "guidance," "project," "goals," "look forward," "poised," "designed," "plan," "return," "focused," "prospects" or "remain" or the negative of these words or other variations on these words or comparable terminology. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties outside of the Company's control that can make such statements untrue, including, but not limited to, the impacts of inflation, rising interest rates or a recession; the adequacy of the Company's liquidity to pursue its business objectives; the Company's ability to obtain reimbursement from third-party payers for its products; adverse economic conditions or intense competition; price increases for supplies and components; wage and component price inflation; loss of a key supplier; entry of new competitors and products; compliance with and changes in federal, state and local government regulation; loss or retirement of key executives, including prior to identifying a successor; technological obsolescence of the Company's products; technical problems with the Company's research and products; the Company's ability to expand its business through

------

strategic acquisitions; the Company's ability to integrate acquisitions and related businesses; the impacts of the COVID-19 pandemic on the Company's business, financial condition and results of operations, and the Company's inability to mitigate such impacts; the effects of current and future U.S. and foreign trade policy and tariff actions; or the inability to carry out research, development and commercialization plans. In addition, other factors that could cause actual results to differ materially are discussed in the Company's filings with the SEC. Investors and security holders are urged to read these documents free of charge on the SEC's website at http://www.sec.gov. The Company undertakes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.

**Investor Inquiries:**

Mike Piccinino, CFA

ICR Westwicke

443-213-0500

investorrelations@tactilemedical.com

------