Aurora Spine Corporation

Hey, and welcome to the Aurora Spine second quarter financial year 2025 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 Lowensteiner, Vice President of Liftham Partners. Please go ahead, sir.

Thank you, Chuck. 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 year 2025 that ended June 30th, 2025. With us on the call representing the company today are Trent Northcutt, President and CEO of Chad Klaus, Chief Financial Officer, and Matt Goldstone, Chief Commercial Officer. 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 21A 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 a 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. A works fund 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 EBITDAG, adjusted EBITDAG, adjusted net income, or 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, 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 the 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 this call to update everyone about Aurora Spine. To lay out the agenda for today's call, I plan on updating everyone on the company's operation and then hand the call over to Chad to review the financials. Afterwards, I will make some brief conclusion remarks and then open the call to answer any questions you may have. I am pleased with the financial results reported for the second quarter of 2025, which showed an increase in revenues from last year by 10.2% and improved EBITDA levels from last year's second quarter and first quarter of 2025. The improvements are from the efforts we have been building through our internal sales efforts. While we have more work to do, we are excited about our future and have the right products available to deliver where the best comes for patients. We are very busy during the second quarter, and we are focused on selling to our outreach of our existing proprietary products, like the Zip and the Silo TFX, which continue to make up the majority of the company's revenues. During the quarter, we surpassed some key product milestones with more than 2,500 silo SI joint fusion products implanted, being implanted, sorry, fusion system products being implanted, over 1,500 surgeries we've done using the DEXA-C. We also, though made some important strides with our DEXA series, primarily the DEXA-C product, which I'll get into, which is the DEXA-L product, excuse me, which I'll get into in a few moments. Also keeping us busy in this newly FDA-cleared product is the Facet Joint, which was rebranded the Hydra Aero, formerly known as just Aero. The rebranded name will help us with the marketing of the product and create a new family name for other products, which we have under the Hydra brand. During the second quarter, we worked very diligently to produce the product for initial surgeries, which commenced shortly after the quarter's close. I'm pleased to share that initial surgeries are continuing and that the product is performing well, and we have taken initial feedback to make any minor adjustments and modifications ahead in the next order of our inventory. We do believe that this product series is revolutionary and has a strong future ahead. We anticipate several doctors to start implanting the product throughout the remainder of the year. We're also eager to share the results of the refined study we conducted for our ZIP device, which is used for patients suffering from back pain due to symptomatic degenerative disc disease. The positive results were presented at the ASPN annual conference in mid-July by Dr. Steven Filowski in a peer-reviewed discussion titled, Functional Outcomes in Low Back Pain, Subject with Novel Interspinous Fusion Devices. Refined study, a 12-month result. The study included results gathered from 11 doctors and who was conducted on behalf of Aurora to determine the utility of this interspinous fusion device as a standalone therapy for treatment of lumbar spinal stenosis. The treatment of lumbar spinal stenosis is a large, unmet treatment need that bridges the gap between conservative measures and minimally invasive surgical procedures. This refined study is an exciting validation of Aurora Spine's ZIP device, which is shown to be proven safe and effective outcomes. We are encouraged with the 12-month data collection points that was delivered at Aspen, as well as having data covering a 24-month period, which also showed positive outcomes with patients having no adverse effects. Moving on to another revenue contributor for Aurora is the Silo platform, which has a series of proprietary products, including the Silo TFX system, where revenues were $2.64 million in the second quarter. an increase of 32.8% from the second quarter of last year. The siloed TFX series is just one of five proprietary product platforms that was developed in the past few years and has gained significant retraction in a short amount of time. We believe that we are still in early innings of the SI joint market opportunity and expect TFX to continue to expand market share. We're also pleased to see the new publication on the TFX in the last few months, including one of the evaluated is biomechanic performance compared to traditional posterior francilis techniques. This demonstrated the TFX superior performance and leading to a positive patient outcomes.