What Tactile Systems Technology, Inc. told the SEC could break it.

Substantially all R&D, assembly, back-office and finished-goods inventory are at one Minneapolis facility with no redundancy, so a disaster there could halt manufacturing.

“We do not have redundant facilities. We perform substantially all of our research and development, assembly and back office activity and maintain all our finished goods inventory at one location in Minneapolis, Minnesota.”

Medicare was 24% of 2025 revenue; the LCD coverage criteria for Tactile's products were retired in Nov 2024 and remain under dispute in federal court, creating reimbursement uncertainty.

“Medicare coverage for our products was retired on November 14, 2024. The validity of the coverage criteria in the LCD remains 26 Table of Contents under dispute in the District Court of the District of Columbia. Our Medicare business was 24% of revenue in 2025 compared to 18% in 2024.”

Tactile uses single-source third-party suppliers for some components and relies on third-party manufacturers for all components and materials in its Flexitouch Plus, Entre Plus, Nimbl and AffloVest systems.

“We utilize third-party, single-source suppliers for some components and materials used in our products, and the loss of any of these suppliers could have an adverse impact on our business. We rely on third-party manufacturers and suppliers to supply all components and materials used in our Flexitouch Plus, Entre Plus, Nimbl and AffloVest systems.”

Tactile's 2025 Restated Credit Agreement is secured by a lien on substantially all assets and carries leverage-ratio covenants; default could let lenders seize the collateral (no borrowings outstanding at year-end 2025).

“Our ability to obtain additional or other financing or to dispose of certain assets could also be negatively impacted because we have pledged substantially all of our assets as collateral in connection with the credit facility.”