Xtant Medical Holdings, Inc.

star 1 on your phone to enter the question queue at any time, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Brett Moss with Hayden IR. Sir, the floor is yours. Thank you, Operator.

Joining me today is Sean Brown, President and Chief Executive Officer, and Scott Neals, Chief Financial Officer. Today's call is being webcast and will be posted on the company's website for playback. During the course of this call, management may make certain forward-looking statements. regarding future events and the company's expected future performance. These forward-looking statements reflect XDAN's current perspective on existing trends and information and can be identified as such words by expect, plan, will, may, anticipate, believe, should, intends, and other words with similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those noted in the risk factors section of the company's annual report on Form 10-K filed this afternoon with the SEC and in subsequent SEC reports and press releases. Actual results may differ materially. The company's financial results press release in today's discussion includes certain non-GAAP financial measures. These refer to the non-GAAP and GAAP reconciliations which appear in our press release and are otherwise available on our website. Note that our Form 8K, followed by the financial results press release, provides a detailed narrative that describes our use of such measures. For the benefit of those who may be listening to the replay of this call, it was held in record on March 6th at approximately 4.30 p.m. Eastern Time. The company declines any obligation to update its forward-looking statements except as required by applicable law. Now, I'd like to turn the call over to Sean Brown. Sean, the floor is yours.

Thank you, Brett, and good afternoon, everyone. I am pleased to announce record fourth quarter revenue of $31.5 million, and for the full year, $117.3 million. This is our first full quarter, a consistent year-over-year comparison with the surge-aligned business incorporated into our revenue, which amounts to a 12% growth quarter over quarter and a 28% year over year growth. And from a profitability perspective, we again delivered positive adjusted EBITDA of $438,000 in the fourth quarter. This accomplishment was achieved despite an inventory write-off of $1.5 million related to the Surgiline acquisition, as Scott will explain later. In summary, 2024 was a challenging year on many fronts with the integration of the various Surgiline businesses, and the ambitious challenge of vertically integrating Extant's biologics offering. I'm thrilled to say that as a team, we have come out leaner and better prepared to create a self-sustaining, growing, and profitable company. Operationally, we continue to look at opportunities to leverage the Extant and Surgilign platforms to improve efficiency. Through this work, we were able to penetrate or able to generate cash flows from operations in Q4 of over a half a million dollars for the first time since 2022. Since August and through the current first quarter of 2025, we have reduced our operating expenses by approximately $5 million. A portion of this cost savings was achieved through headcount reductions of more than 13%, most of which was tied to the closing of the Greenville facility and other acquisition-related integration activities. Recall, we acquired our Greenville facility when we acquired the Nanos production operations from RTI Surgical in October of 2023. We recently moved the production of our Nanos products to our Belgrade facility. As we continue to vertically integrate our biologics business, we believe we will realize additional operating efficiencies tied to greater throughput and improved processes. From a hardware perspective, we continue to rationalize old and redundant lines. This is a good example of where we have chosen to give up some top line revenue due to the capital required to maintain a hardware line. Furthermore, as we bring more lines into our main distribution facility in Belgrade, we believe there will be additional savings compared to using a third-party logistics company in 2024 that is not as efficient as our own operations. From a commercial perspective, our biologics business grew 21% for the quarter, while our hardware took a 10% hit. Two main drivers for the growth in biologics were, first and foremost, our new stem cell offering branded as OsteoVive+, which has done very well for us, out of the gate, the second driver was our new Amnion product line. Conversely, our hardware drop-off was tied to two significant issues. First, to a very strong previous year comparison that included several rationalized surge line fixation lines. These were lines that surge line had discontinued prior to our acquisition. And secondly, our international business continued to fight through EU supply chain issues that impacted their sales again in this quarter. From a new product development perspective, we anticipate four new biologics products scheduled to launch this year. The primary release will be our own growth factor product, which we are excited about because it will complete the targeted vertical integration of our current offering. Two of our new products will be upgraded DBM-based products that should drive higher revenue and gross profit. The last of these new product lines will expand our surgical wound care offering. Our surgeons currently use all of these products, and our independent agent partners have requested them for quite some time. This year, we expect to pick up a solid growth in our OEM business. These OEM opportunities serve two purposes. First is a great channel for us to leverage manufacturing capacity to grow profitably. Second, it serves as a means for Extan to learn more about adjacent markets, such as foot and ankle, trauma, surgical, wound care, and other relevant markets that we can serve now with our current expanded offerings of products, which many of these serve these adjacent markets. With that as a backdrop, in January of 2025, we licensed another Q code for our single-layer Amnion product. This brought us an upfront licensing fee of $1.5 million and production minimums for an OEM partner. However, most of these minimums will not continue if the local coverage determination or LCD for skin substitute takes effect as planned on April 13th. Looking ahead to 2025, we are continuing our pursuit of achieving self-sustainability. Our corporate direction moving forward has been prioritizing profitability ahead of revenue growth. We plan to leverage our cost-cutting measures to return our business to sustainable cash-flowing business. In fiscal year 2025, we expect mid-double-digit revenue growth in biologics and to stay consistent to modestly down revenue year over year in hardware. From a hardware perspective, we continue to look at rationalizing lines to optimize both our offering and our management of cash. From a profitability perspective, our goal is to be sustainably cash flowing by the end of the year, From a guidance perspective for full year 2025, we expect revenue in the range of $126 million to $130 million, which is an 8% to 11% growth, which together with our anticipated cost savings, we project that we will not need to raise additional capital. With that, I will turn the call over to Scott for a more detailed review of our financial results.