Aurora Spine Corporation

Hello, everyone, and thank you all for joining us during the Litham Partners Fall 2021 Investor Conference. My name is Adam Lowensteiner, Vice President at Litham Partners. Our next presentation comes from Aurora Spine, ticker symbol of ASG, that is Alpha Sierra Golf on the Toronto Venture Exchange, and ASAPF, that is Alpha Sierra Alpha Papa Foxtrot on the OTCQB in the U.S., Presenting for the company today is Mr. Trent Northcutt, President and CEO of Aurora Spine. A copy of the slide presentation is available on your webcast screen, and you can access a downloadable version by clicking the materials button on the left-hand side of the screen. Today, I've asked Trent to briefly run through the slide presentation, and we'll then engage in a fireside chat-like Q&A session. As a reminder, the company will be available for one-on-one virtual meetings. If you've not already signed up, please send me an email at Lowensteiner at LithamPartners.com or visit www.LithamPartners.com forward slash virtual and click the one-on-one meeting request button. With that said, let me now turn the presentation over to Mr. Trent Northcutt, President and CEO of Aurora Spine. Trent, please proceed.

Thank you, Adam. Pleasure to be here and thanks for inviting us to the conference. So coming off last week at NASS, the North American Spine Society meeting in Boston, Massachusetts, we had a very good show, very good showing of Aurora's new technologies. It was absolutely highlighted by the DEXA technology, which I'm going to share with you today in this presentation. So slide number one is the investment presentation going into slide number two, which is our forward-looking disclosure statement here. Moving right to slide number three. Aurora's developed a portfolio of solutions for the spinal implant market through a series of innovative minimally invasive products. Our focus has always been to keep it more of a regenerative spinal implant technology where it's better for the patient, easier for the doctor to implant. We're located in Carlsbad, California. It's actually my hometown. It's just 35 miles north of San Diego, and it's a big med tech area. It's actually a lot of spine companies and other medical companies in that area. We have two primary divisions that we really focus on, which is Aurora, you know, our innovation sector of our product, of our company, and our portfolio. And then we have spine, you know, within that division. So Aurora Spine, which has all of our spinal implant technologies for cervical, for lumbar. And our newest division, which is Aurora Pain Care, the Aurora Pain side of the division, is actually focused on working with interventional spine doctors in minimally invasive devices, such as our ZIP implant and our new silo posterior systems. So really exciting stuff for the company to get into the hands of the doctors so they can help get their patients back up on their feet. Going to slide four. So the ongoing conversation with Auroras has been really successful this year for us getting away from third-party products. We've been successful in that. So a year previously, we were... We were selling nearly 65 to 70% third-party products, and Aurora has switched that, and we are now moved to past 70% of Aurora products only, and we will be at 80% Aurora products only in the coming, say, next 35 to, say, 55 days with the new release of the Apollo cervical plate, which is approximately 8% of our monthly number. advance our technology development. So we've worked on some new technology, such as our posterior SI joint system. We did push back a little bit on our ZipFlex because of the excitement and the revenues that are being generated by the new SI joint system called Silo. And in the multicenter study, which I'm going to talk about more in this presentation. So that advanced product development is really being focused on the silo and the silo tfx and the dexa technology and of course getting the fda approval with the dexa and with the apollo cervical plates this year was key to the company the third point here is the expansion of the pain market yes this has been one of the most impactful divisions in our company it's led by you know some really good talented sales people who are out there direct with aurora and we've been able to pick up new positions within our company and it's actually added this whole new marching orders to the company to go out there and be part of these events and trade shows and categorical labs with the pain interventional doctors and showing them our technologies and how they could work in their practice. And it's been really well received. In fact, it's increased our revenues in one of our particular products from 8% to over 40% monthly revenue increase. So it's been really strong and we continue to march that way with that product and those doctors. We've strengthened our balance sheet. There'll be a couple things I'll talk about in this presentation. Aurora was able to pick up an investment, $5 million U.S., $6.5 million Canadian, and we did that because we need to build out more of our inventory and focus on sales infrastructure, and that was the key purposes of us picking up that investment into Aurora. Going to slide five. So spine surgery is just a quick overview. If you look to the right of the slides, it's cervical, it's thoracic, it's lumbar, and it's sacral. So the implants that you see that go underneath that is our fusion devices, such as our stiff implants that you see, the cages, the plates, the standalone, and the lumbar screws, which help us fuse these bones together or help treat these bones and pain generators that come out of these segments. So a majority of spine surgery is targeted to relieve pain, caused by disc injury or disease. Most surgeries involve damaged discs or the removal of a disc, such as an intruded disc or a degenerative disc that's now really causing a lot of pain for that patient. Our implants that we make allows us to help bring these bones together and create a fusion between them. Going to slide six. So the addressable market for us, it's an established market and it's an emerging market still. There's still a lot of growth in this market to come. So it's a $9.6 billion implant market in the United States, which is what we primarily focus on. And the market is growing at 3% annually. 80% of the market is supplied by six of the big players. We're talking about the Metronics, the Strikers, those types, Johnson & Johnson, Depew, big companies like that. But the innovation sector comes from companies like Aurora. We are innovative. And big companies, let's face it, they acquire and little companies innovate. And Aurora, I think, is a great innovation company. We've got some really interesting technologies and patented technologies that are really resonating. They resonated really well for us last week in Austin. You know, so that is what we think is our driver towards why Aurora would be looked at by one of these larger companies. So, you know, innovative and growing and having emerging technologies that these big companies might want to take a closer look at. Skipping over seven and going straight to slide eight, you know, we talk about the screwless procedure, and this is something that's been really key to us with our new paying interventionalists. We've entered into a multi-center study with a very successful, very known pain interventional doctors around the country. We've trained over 200 interventional doctors now in cadaveric labs and training sessions across the country from Miami to Dallas to Nevada. We've done training sessions in regions such as Chicago, Seattle, San Diego, and um new york so it's been really great to get out there across the country even during you know the covid uh you know wind down we hope and uh it's been really productive for us and the zip school's procedure has done really well for us so the key features of why zip's doing for us and why it's resonating with these pain doctors is that it reduces the operating room time And it also reduces the patient's blood loss. And this is a really key product for them if they're in a surgery center or in an outpatient setting at the hospital. They want to have a product that's going to perform for them and get that patient in and out safely, effectively, and get back on to the road of recovery. And then the tiny animal, that was the other big product that was Aurora's mainstay product. working together with these two products to help us advance our technologies along with standalone and the cervical plates, which is all part of that fusion I talked about on slide five. Going to slide nine. We not just make products, but what we do is when we make a product, we often look at it from the viewpoint of what should we do to patent protect this product. So we actually have a full portfolio, nine patents issued, seven U.S. patents issued, and of course we have another six patents that are pending within our organization. And we're building a big, robust IP portfolio to help us mark on

going into the coming years of products that are actually developed, but also patent protected.