Surgalign Holdings, Inc.

Good afternoon, ladies and gentlemen, and welcome to the Surgiline Polling Sport Quarter and Full Year 2020 Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. If anyone should require assistance during the conference, please press star, then zero on your touchtone telephone. As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, John Singer, please go ahead.

Thank you, Operator. Good afternoon, and thank you for joining the Surgeon Line Holding Inc.' 's fourth quarter and full year conference call. Joining me today on the call is Terry Rich, our President and Chief Executive Officer. Before we start, let me make the following disclosure. The earnings and other matters we will be discussing on this conference call will involve statements that are forward-looking. These statements are based on our management's current expectations. They are subject to various risks and uncertainties associated with our lines of business and with the economic environment in general. Our actual results may vary from our statements concerning our expectations about future events that are made during the call. We make no guarantees as to the accuracy of these statements. Accordingly, we urge you to consider all information about the company and not to place undue reliance on these forward-looking statements. During the call, we will also present certain financial information on a non-GAAP basis. Management believes that non-GAAP financial measures taken in conjunction with U.S. GAAP financial measures provide useful information for both management and investors by excluding certain non-cash and other expenses that are not indicative of our core operating results. Management uses non-GAAP measures to compare our performance relative to forecast and strategic plans to benchmark our performance externally against competitors and for certain compensation decisions. Reconciliations between U.S. GAAP and non-GAAP results are presented in the tables accompanying our earnings release, which can be found in the investor relations section of our website. Now, I will turn the call over to Terry.

Thanks, John. Good afternoon, everyone. On today's call, I'll provide an overview of our fourth quarter performance, an update on events that occurred during 2020, and then turn the call over to John to provide financial overview, after which I'll provide our thoughts on 2021. Total revenue for the fourth quarter was $26.2 million, down from $31.6 million during the fourth quarter of 2019, primarily driven by the negative impact of COVID-19 on elective procedures, both in the U.S. and internationally. Taking a step back, 2020 was a transformational year for the company. Amidst all of the uncertainty associated with COVID, we pursued an organizational overhaul in July, which included the separation of two businesses to create a standalone, pure-placed buying company now known as SurgeLine. Just a few months later in September, We acquired Holosurgical, immediately shifting our priority to becoming a leader in the digital surgery space with an initial focus on spine. At the time we launched Surgiline, we laid out our growth strategy for the business, which was made up of three components, build, innovate, and acquire. We have made tremendous progress towards each of these during the remaining five months of the year. Starting with build. We have assembled a world-class team throughout the organization from our employees, the management team, and the board of directors. We talked at length on previous calls about the talent we have been able to add, and we continue to do so in recent months. When looking at the senior leadership team, John, Enrico Sangiorgio, our head of international, and myself are the only members of the team who were part of the organization at the beginning of 2020. Along with senior leadership appointments, we have brought in substantial experience to round out the team in literally every department within the organization. Our marketing team is in large part completely new. Our R&D team is entirely new. And we have added a number of people within our finance, quality, regulatory, clinical, medical education, marketing, and communications functions. On the innovation side, we made progress towards the overall development of our portfolio during the third and fourth quarters, which included product line extensions and expansion of the biologics portfolio, the application of new materials and manufacturing capabilities, and most importantly, additional functionality of the digital platform. However, as we progressed through the back half of 2020, we intentionally slowed down the pace of new product launches. We want to take time to reimagine our current portfolio and our innovation roadmap to ensure it supports our shift to digital. In conjunction with the development of our product roadmap, we need to properly onboard, integrate, and align all of the new talent within the organization. We are now confident that beginning in the back half of 2021 and into 2022, a best-in-class portfolio will emerge, which includes innovative products and systems that are highly integrated with the Holo platform. Our last component is Acquire. Following the close of the Holo acquisition during the fourth quarter, core members of the Holo team have joined SurgLine in key roles, with two of its co-founders, Professor Christian Luciano and Dr. Chris Chimonoff, joining to head up the continued development of the Holo platform and lead our digital surgery R&D initiatives. In the fourth quarter, Paul Lewicki, the third co-founder of Holo, joined the Sturge Line Board of Directors. Paul is widely known as one of the forefathers of predicted data mining and continues to be a thought leader in the promotion of artificial intelligence in healthcare, and we are excited to have him as part of our organization. With the integration of Holo behind us, the company is completely aligned on our long-term strategy and what needs to be done going forward to deliver. We continue to believe that there are a variety of interesting products and technologies out in the market and we'll continue to evaluate acquisition, licensing, and partnership opportunities that we feel would fit within our strategic framework and be supportive of our digital portfolio. Our commitment to digital surgery aligns with the perspective of many industry thought leaders that medical device companies will see significant change in the near future as the currency of the industry moves from implants to digital services. These services include machine learning to leverage outcomes and additive manufacturing to create patient-specific implants, all informed by AI resources leveraging predictive analytics and a move towards personalized medicine. We believe companies that embrace this new paradigm will thrive in the transformation. 2020 was a transformational year for SurgeLine. where we made significant progress in building a foundation to deliver on the promise of digital surgery. While I'm proud of what we accomplished in the past six months, we expect that it will take an additional 12 to 18 months to complete our transition from an implants company to a digital surgery company delivering surgical solutions. With that, I'd like to call over to John for a financial update. Thank you, Terry.