TACTILE SYSTEMS TECHNOLOGY INC 10-K

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Market Information Our common stock has been listed on the Nasdaq Global Market under the symbol "TCMD" since July 28, 2016. Holders As of February 19, 2021, there were approximately 34 holders of record of our common stock. The actual number of holders of common stock is greater than this number of record holders and includes stockholders who are beneficial owners but whose shares are held in street name by brokers and nominees. The number of holders of record also does not include stockholders whose shares may be held in trust by other entities. Recent Sales of Unregistered Securities None. Issuer Purchases of Equity Securities None. Equity Compensation Plan Information The information required by this Item concerning equity compensation plans is incorporated herein by reference from Part III, Item 12 of this report. 68 Table of Contents Stock Performance Graph The graph below compares the cumulative total stockholder return on our common stock with the cumulative total stockholder returns on the Nasdaq Composite Index, Russell 2000 Index and S&P Healthcare Equipment Select Industry Index for the periods indicated. The graph assumes that $100 was invested on July 28, 2016, in our common stock and each of the indices and that all dividends, if any, were reinvested. No cash dividends have been declared on our common stock. Stockholder returns over the indicated periods should not be considered indicative of future stockholder returns. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Index ​ ​ 7/28/2016 ​ ​ 12/31/2016 ​ ​ 12/31/2017 ​ ​ 12/31/2018 ​ ​ 12/31/2019 ​ ​ 12/31/2020 Tactile Systems Technology, Inc. $ 100 ​ $ 159 $ 280 ​ $ 440 $ 652 ​ $ 434 Nasdaq Composite Index ​ ​ 100 ​ ​ 105 ​ ​ 134 ​ ​ 129 ​ ​ 174 ​ ​ 251 Russell 2000 Index ​ ​ 100 ​ ​ 111 ​ ​ 126 ​ ​ 111 ​ ​ 137 ​ ​ 162 S&P Healthcare Equipment Select Industry Index ​ ​ 100 ​ ​ 100 ​ ​ 130 ​ ​ 142 ​ ​ 174 ​ ​ 231 ​ ​ 69 Table of Contents Item 6. Selected Financial Data. The following tables set forth our selected historical consolidated financial data as of and for the periods indicated, which have been derived from our audited consolidated financial statements. Our historical results are not indicative of the results to be expected in the future. The following financial data should be read in conjunction with, and are qualified in their entirety by reference to, “Management's Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and the related notes included elsewhere in this report. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, (In thousands, except share and per share data) 2020 2019 2018 2017 2016 Consolidated Statements of Operations Data: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue, net ​ $ 187,130 ​ $ 189,492 ​ $ 143,751 ​ $ 109,283 ​ $ 84,542 Cost of revenue ​ 54,320 ​ 55,256 ​ 41,493 ​ 29,015 ​ 22,940 Gross profit ​ 132,810 ​ 134,236 ​ 102,258 ​ 80,268 ​ 61,602 Operating expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sales and marketing ​ 79,634 ​ 78,920 ​ 60,371 ​ 44,396 ​ 33,794 Research and development ​ 5,264 ​ 5,174 ​ 5,289 ​ 5,060 ​ 4,476 Reimbursement, general and administrative ​ 51,540 ​ 39,644 ​ 33,608 ​ 26,914 ​ 19,060 Total operating expenses ​ 136,438 ​ 123,738 ​ 99,268 ​ 76,370 ​ 57,330 (Loss) income from operations ​ (3,628) ​ 10,498 ​ 2,990 ​ 3,898 ​ 4,272 Other income ​ 1,367 ​ 631 ​ 486 ​ 292 ​ 38 (Loss) income before income taxes ​ (2,261) ​ 11,129 ​ 3,476 ​ 4,190 ​ 4,310 Income tax (benefit) expense ​ (1,641) ​ 158 ​ (3,147) ​ (1,665) ​ 1,431 Net (loss) income ​ (620) ​ 10,971 ​ 6,623 ​ 5,855 ​ 2,879 Convertible preferred stock dividends ​ — ​ — ​ — ​ — ​ 1,247 Net (loss) income attributable to common stockholders ​ $ (620) ​ $ 10,971 ​ $ 6,623 ​ $ 5,855 ​ $ 1,632 Net (loss) income per common share attributable to common stockholders ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ (0.03) ​ $ 0.58 ​ $ 0.36 ​ $ 0.34 ​ $ 0.18 Diluted ​ $ (0.03) ​ $ 0.56 ​ $ 0.34 ​ $ 0.31 ​ $ 0.15 Weighted-average common shares used to compute net (loss) income per common share attributable to common stockholders ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ ​ 19,346,929 ​ ​ 18,919,007 ​ ​ 18,252,689 ​ ​ 17,355,175 ​ ​ 8,913,042 Diluted ​ ​ 19,346,929 ​ ​ 19,641,143 ​ ​ 19,347,632 ​ ​ 18,877,863 ​ ​ 10,758,684 ​ 70 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, (In thousands) 2020 2019 2018 2017 2016 Consolidated Balance Sheet Data: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 47,855 ​ $ 22,770 ​ $ 20,099 ​ $ 23,968 ​ $ 30,701 Working capital ​ ​ 96,899 ​ ​ 86,907 ​ ​ 68,885 ​ ​ 62,353 ​ ​ 50,440 Total assets ​ ​ 174,087 ​ ​ 151,752 ​ ​ 107,071 ​ ​ 88,447 ​ ​ 73,935 Retained earnings (accumulated deficit) ​ ​ 20,056 ​ ​ 20,676 ​ ​ 9,705 ​ ​ 3,082 ​ ​ (2,773) Total stockholders' equity ​ ​ 124,750 ​ ​ 112,595 ​ ​ 89,270 ​ ​ 72,787 ​ ​ 59,639 ​