Xtant Medical Holdings, Inc.

Good afternoon, everyone, and welcome to the Extant Medical's first quarter 2025 financial results. At this time, all participants are in a listen-only mode, and the floor will be open for questions following the presentation. If anyone should require operator assistance during this conference, please press star zero on your phone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Brett Maas of Hayden Investor Relations. Brett, 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 XTAN's current perspective on existing trends and information that can be identified such words as expect, plan, will, may, anticipate, believe, should, intends, in other words, to a 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, followed 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. Please refer to the non-GAAP to GAAP reconciliations, which appear in our press release and are otherwise available on our website. Note that our Form 8K, followed with our financial results press release, provides a detailed narrative that describes our use of such measures. For the benefit of those who may be listening for the replay, this call was held and recorded on May 12th 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'm pleased to share that XM Medical delivered outstanding results for the first quarter of 2025. We achieved strong top and bottom line performance across every key financial metric. Starting with our top line revenue growth of 18%, reaching $32.9 million in total revenue, this robust performance coupled with our cost-cutting efforts over the last six months resulted in strong adjusted EBITDA and positive net income. From a shareholder perspective, we reached a significant milestone with the termination of a very restrictive investor rights agreement with Orvimed. This agreement has long been a constraint, and its removal marks a new chapter for Extant. We are encouraged by the continued investment in our business by our new major investor, Nantahala, and appreciate their belief in our current business strategy, which we believe will be beneficial to all shareholders in the long term. As some of you may notice, we filed a form S-1 resale registration statement this afternoon, registering the resale of the shares sold by OrbiMed to a group of investors led by Nantahala, which we agreed to do to facilitate this transaction. Note that no new shares are being issued by Extant pursuant to this registration. Again, I want to emphasize that. No new shares are being issued by Extant pursuant to this registration. So, Getting back to the business and from a strategic perspective, we have reached a major inflection point, the full vertical integration of our previously outsourced biologics products. This endeavor, which we have been driving towards for the last 18 months, is now complete. All major biologics product categories sold by Extant are now manufactured in-house. With this achievement, we believe Extant is now the most diversified, vertically integrated biologics company in the market. In addition, we have rejuvenated our core demineralized bone offerings with the launch of two new innovative products, Trivium and Fibrex. Trivium is a groundbreaking new DBM offering with three synergistic elements designed to deliver exceptional performance in structure, handling, and biological activity. These new DBM products, alongside our three demand, provide surgeons with a comprehensive range of bone grafting solutions. These new product launches are expected to help offset the impact of product rationalization following our Surgiline acquisition and drive renewed growth. Another noteworthy development this quarter was the receipt of royalties tied to licensing our SimplyMaxQ code to a distributor in the chronic wound care space. Additionally, CMS extended the local coverage determination for skin substitutes to December 31st, 2025, which opens the door for additional royalty income and cash generation during the second half of 2025. However, we remain realistic given the ongoing changes to CMS policy and other governmental cost savings initiatives, which we factor into our guidance for the year. Lastly, To support our growing production needs, we added additional processing capacity this past month at our Belgrade facility. This addition will enable substantial future increases in our production capacity as needed. Coupled with our R&D investments, we have a strong pipeline of new orthobiologics and biologics beyond spine, positioning Extant as a broader, more versatile, regenerative biologics company for the future. Looking ahead to 2025. In 2025, we remain focused on our path towards self-sustainability, emphasizing profitability and cash generation. With new products launched, targeted growth opportunities, and recent cost-cutting issues, we are on a path to a sustainably cash-flowing position. For fiscal year 2025, we anticipate mid-double-digit revenue growth in our biologics product family, while hardware revenue is expected to remain flat to modestly down year-over-year. In hardware, we continue to rationalize our product lines to streamline our offerings and optimize cash management. Today, we are increasing our full year 2025 guidance for total revenue in the range of $127 million to $131 million, representing 8% to 11% growth. Combined with our targeted cost savings, we do not anticipate the need to raise additional capital at this time. With that... I will turn the call over to Scott for a more detailed review of our financial results.