Aurora Spine Corporation

Ladies and gentlemen, thank you for standing by. The Aurora Spine Conference will begin momentarily. Please stay on the line. Thank you. Thank you. Thank you. Thank you. Thanks for watching! Thank you. Hello and welcome to the Aurora Fines second quarter fiscal year 2023 financial results conference call. All participants will be in 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 telephone keypad. To withdraw from the question queue, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Adam Lowensteiner. Please go ahead.

Thank you, MJ. Welcome, everyone, and thank you for joining us today to conduct an update with investors and review the financial results for Aurora Spine for the second quarter fiscal 2023 ended June 30, 2023. With us on the call representing the company today are Trent Northcutt, President and CEO of Aurora Spine, and Chad Klaus, Chief Financial Officer of Aurora Spine. Before we begin, I'd like to remind everyone that statements made during the 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 risks 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 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 CEO of Aurora Spine. Trent, please proceed.

Thank you, Adam. I'd like to welcome everyone to this call to update everyone about Aurora Spine. First off, I do apologize for the delay in having this call, but I've been out on the and working towards developing this business further. To lay out the agenda for today's call, I'd like to take a different approach and focus on a few topics to update investors as what we're working on at Aurora Spine. After those remarks, Chad and I will be happy to answer any questions you may have. Topics to cover. Number one, silo TFX. It is selling and doing well and it's given the limited amount of kits in the field, but these limited amount of kits have really performed well. So A, it is selling and it is doing well. B, more kits are on their way. So we're going to have a more robust build out on this product line. C, plans for development of those kits is underway. Number two, Zip. Zip saw a 33% increase year over year. Continues to be the workhorse for Aurora. C, we're seeing growth due to picking up in new accounts based upon the trainings that we've performed. In-house sales team, this is really key. Working on building internal sales teams. That's been our number one A focus on the in-house sales team. B, we will be between 8 and 12, and we've already added, we have over five now people in the field working towards development. We're going to add probably up to 7,000 additional by March of next year. We believe this is needed for the growth of the company to build a stronger relationship with the customers. Number four, update up on DEXA technology, where we are having the first patient enrolled in the multicenter study is key. Number five, the company's financial structure. Q2 was a step in the right direction, getting back on track to where we were in the previous year. The balance sheet is a bit tighter than you'd probably like. but we're working on bridging that financing and getting better sorting out of that financing. Profitability is now within grasp and we really are moving in that direction. And six, we just want you to know that this is the time for Aurora to grow. To summarize, I'm extremely proud of our team's performance and staying focused on building this team. We're well positioned to take advantage of the growing markets with several new proprietary products. We remain focused on penetrating these markets further this year as we continue the training sessions and the clinical trials. Looking on to longer term, we are well positioned for success, especially as we have these new products and more clinical studies proving out our technologies and education, more doctors on the benefits of using the Aurora products. We remain highly focused on this opportunity that's in front of us and will continue to invest in our growth and with each of our new major platforms such as Zip, Silo, and Dexa.