Aurora Spine Corporation

Good morning, and welcome to the Aurora Spine First Quarter Financial Year 2025 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 your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Adam Lowensteiner with Lithium Partners. Please go ahead.

Thank you, Gary. 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 first quarter fiscal year 2025 that ended March 31, 2025. With us on the call representing the company today are Mr. Trent Northcutt, President and CEO of Aurora Spine, and Mr. Chad Klaus, Chief Financial Officer of Aurora Spine. Before we begin, I would 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 for future performance and are subject to risks and uncertainties and other important factors that could cause actual performance or achievements to be material different from those projected. Full of full discussion of these risks, uncertainties, and factors, you're 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 sections. Aurora Spine does not intend to update or revise any forward-looking statements, whether as a result of new information or future events or otherwise. On this call, management may refer to EBITDAG, adjusted EBITDAG, adjusted net income, and 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 compared GAAP measures in accordance with the SEC Regulation G can be found in the company's earnings release. With that, I'd now like to 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. To lay out the agenda for today's call, I plan sharing some brief remarks about the company's operations, as it's only three weeks since our last conference call. And then I'll hand, I'll cut the calls over to Chad to review financials afterwards. Chad and I will make some brief concluded remarks and then open the call to answers and answer any question that you may have. I am very pleased with our financial results reported today for the first quarter results, which recorded Aurora's best first quarter revenue figures in the company's history. As we discussed a few weeks ago, we expected to build some momentum in our revenues through the rest of the year, as our team engages with more doctors and have more procedures built through the year, combined with the launch of the new products in the coming months. Helping us achieve these improved first quarter revenues was due to our internal sales team, which has done a great job at building strong relationships with our customers. These relationships are highly beneficial in knowing the future of what's in the midst of launching additional products. Our amazing internal sales team is now at 14 people with their diligent efforts to drive behind our growth in getting our proprietary products into more doctors' hands and patients. Assisting our sales team will be providing out success with our proprietary products and sharing the data we receive behind the usage of our products. Along these lines, we expect to share regarding our proprietary ZIP interspinous fixation device at the upcoming American Society of Pain Neurosciences, known as ASPEN, conference in July. We were also eager to share the results of the refined study we conducted with our ZIP device, which is used for patients suffering from back pain due to symptomatic degenerative disc disease. The results will be presented at the ASPEN annual conference mid-July and will be the spotlight of Aurora Spine's commitment to evidence-based innovation. We anticipate that the refined study's findings will reinforce the efficiency and safety of its ZIP system, further solidifying Aurora Spine's position as a trailblazer in the spine implant market. Aurora Spine remains committed to empowering physicians and providing patient outcomes through groundbreaking clinical evidence and minimally invasive solutions. The company's success also continues to come from our key proprietary product platforms, especially the siloed TFX system, where revenues were $1.7 million in the first quarter, an increase of 33.8% from the first quarter of last year. The siloed TFX series is just one of five proprietary product platforms that we've developed in the past few years and has gained significant traction in a short amount of time. We still believe it's early innings in the SI joint market opportunity and expect TFX to continue to expand the market share. We believe that the TFX along with our portfolio of proprietary products have a potential for future growth and adoption given that all has been designed to prove ease of use for the doctor and can be implanted using minimally invasive procedure. Simultaneously, our goal is also to create better outcomes for patients through things like smaller incisions, which limit blood loss, allows patients to return home the same day of the procedure and experience faster recovery times. We believe that this is our secret sauce by creating products with both the doctor and the patients in mind. As we say here at Aurora, we simplify the complex. Just a brief update on DEXA. We are working diligently to open up more hospitals to use DEXA, and have a couple of our sales team working and adding more every day. As many of you know, Dexo will be a little bit different of a sales than some of the other products, but we are making inroads to educate doctors on our offering, and many early indications are that the value-add technology can enable surgeons to proceed with their surgeries even if the patient's bone density isn't so strong. Dexo-C that's been contributing to the company's revenues, we should have data to share on the product in the upcoming months. In addition, we expect that the launch of the DEXA-L for lumbar procedures during the second half of 2025.