Aurora Spine Corporation

Good day and welcome to the Aurora Spine Report's first quarter fiscal year 2023 financial results conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. And to withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Mr. Adam Lewinsteiner. Please go ahead, sir.

Thank you, Chuck. Welcome, everyone, and thank you all for joining us today to review the financial results for Aurora Spine for the first quarter fiscal 2023, ended March 31, 2023. With us on the call representing the company today are Trent Northcutt, President and CEO of Aurora Spine, and Chad Klaus, CFO of Aurora Spine. Before we begin, I would like to remind everyone that statements made during this course of this call may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Act of 1934. These statements reflect current expectations concerning future events and results. Words such as expect, intend, believe, may, will, should, could, anticipate, and similar expressions are words that are used to identify forward-looking statements, but their absence does not mean a statement is not forward-looking. These statements are not guarantees of future performance and are subject to risk and uncertainties and other important factors that could cause actual performance or achievements to be materially different from those projected. For full discussion of these risks, uncertainties, and factors, you are encouraged to read Aurora Spine's documents on file with CDAR. including those set forth in periodic reports filed under the forward-looking statements and risk factors section. Aurora Spine does not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. On this call, management may refer to EBITDA, adjusted EBITDA, adjusted net income, adjusted EPS, which are not measures of financial performance under generally accepted accounting principles or GAAP. Management believes that these non-GAAP figures, in addition to other GAAP measures, provide meaningful supplemental information regarding the company's operational performance. Investors should recognize that these non-GAAP figures might not be comparable to similarly titled measures of other companies. These measures should be considered in addition to and not as a substitute for or superior to any measure of performance prepared in accordance with GAAP. A reconciliation of non-GAAP measures to the most directly comparable GAAP measures in accordance with SEC Regulation G can be found in the company's earnings release. With that, I'd like to now turn the call over to Mr. Trent Northcutt, President and Chief Executive Officer of Aurora Spine. Trent, please proceed.

Thank you, Adam. I'd like to welcome everyone to the Aurora Spine first quarter fiscal 2023 financial results conference call. Earlier today, we issued a press release detailing our financial results. Hopefully, you've had a chance to review this news release. But if not, a copy can be found on our website at auroraspine.com, under the Investor section, or in other financial websites. To lay out the agenda for today's call, let me first summarize a few key events for the quarter. And then I'll take a bit about the status of each one of our key initiatives and products like Zip and Silo, as well as our initiatives on the Spine Division, including DEXA product lines. Chad will then give a recap of the financial results, and we will then conduct a Q&A session at the end. So let me talk to you about the key events of Q1, the market overview, the dynamics of the new products, and our clinical studies. The first quarter of the fiscal 2023 was a transitional quarter for Aurora, where the industry had managed certain reimbursement changes that affected our SI joint division, which in the interim has been resolved. We've also added new sales personnel during this time, and we will start to establish new relationships to renew our sales strategy. We believe that these changes and investments will be beneficial to the company later fiscal in the long term. Despite these short-term issues, the company has several key initiatives that were positive events, including the initial surgeries of our new siloed TFX product, which has been successfully implanted into patients. We are currently building inventory to ramp up for the new release of this product slated for the third quarter of 2023. We also embarked on clinical studies, which many of our products during the 2022 into 2023. That is important to have this data to share with the industry when selling our products. As we receive early positive results from our ZIP device, it continues to build momentum ZIP to act as a key contributor to the company's sales, and as the product has recently received approval reimbursements, but is versatile and is starting to gain momentum in the marketplace as more professionals, including neuro, ortho, and pain interventionalists, are recognizing the value of the zip line of the product and to others. We believe that the true vision and intent of this product is now coming to fruition. Looking into 2023, we believe that the proper track for continued revenue growth. While the first quarter was slower than anticipated, we took time to make some changes to prepare the company for the long term, including adding some new personnel. On a macro level, we continue to see momentum gaining in the minimally invasive surgery market, especially in regards to the reimbursement coding, as insurances are embracing more procedures that can be done in a minimally invasive manner and have the patient recoup at home in a quicker timeframe. Aurora's products like the Zip and the Silo are very complimentary to doctors and their patients and especially designed for minimally invasive procedures. I believe that these catalysts, while our products are able to gain traction, will be well received. Moving on to DEXA. We continue to work diligently in placing the kits. We are identifying appropriate homes for these kits. We feel confident that they will be able to place these kits by the end of the year. That said, in order to attract appropriate health care professionals, we will be starting to offer certain training capabilities for the DECSA C to immerse them into the product and to the technology. While training isn't required, we believe offering some training will be necessary to get the doctors to fully embrace the technology. Our goal is not only to have them use DECSA C, but to continue to use the entire platform as well, especially as we will have DEXA-L available in the near future. To summarize, I'm extremely proud of our team's performance and staying focused on building this company. We are well positioned to take advantage of growth markets and several new proprietary products. We will remain focused on penetrating these markets further this year through continuing training sessions and clinical trials. Looking to the longer term, as well as positioned for success, We especially have the new products and more clinical studies providing out of our technology and education for more doctors on the benefits of using Aurora's products. We remain highly focused at the opportunities that are in front of us and continue to invest our growth with each of our major platforms, Zip, Silo, and Dexa. I will now turn the call over to Chad Klaus, Aurora Spine CFO, who will review the financial results. Chad, please proceed.