Aurora Spine Corporation

Good day and welcome to the Aurora Spine third 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 a touch tone phone. To withdraw your question, please press star then two. Please note that this event is being recorded. I would now like to turn the conference over to Adam Lowensteiner, Vice President of Lithum Partners. Please go ahead.

Thank you, Chloe. Welcome, everyone, and thank you for joining us today to conduct an update with investors and review the financial results for Roarer Spine for the third quarter fiscal year 2025 that ended September 30th, 2025. With us on the call representing the company today are Trent Northcutt, President and CEO of Roarer Spine, Matt Goldstone, Chief Commercial Officer, and Chad Klaus, Chief Financial 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 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 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 or 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, 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 information. 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 now like to turn the call over to Mr. Trent Northup, President and Chief Executive Officer of Aurora Spine. Trent, please proceed.

Thank you, Adam. I'd like to welcome everyone to the 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 operations and then hand the call over to Matt Goldstone, our Chief Commercial Officer, to review all of our sales initiatives. After Matt makes his remarks, I will pass the call off to Chad Klaus, our Chief Financial Officer, who will then briefly review the company's financials. Afterwards, I'll make some brief concluding remarks and then open call to answer any questions you may have. The third quarter results were moderate of nature as we're going up against a strong third quarter comparison from last year. That said, I am pleased with the changes that we were making and the momentum that we built during the third quarter of 2025, which showed consistency, disciplined expense controls, and continued profitable EBITDA. The momentum we built in the quarter were due to efforts that we made on building our internal sales force, which now have additional products in their bag to detail the medical professionals that we're targeting. Also, the momentum we're referring to is how the quarter started off a bit slow, but grew stronger into the fall months, especially September and October. As a matter of fact, October was Aurora's best months on record by revenue. That said, I must continue to remind investors that we're still in early innings of a new paradigm in offering key proprietary products that can be used in a minimally invasive manner, of which certain procedures in their own right are still very new to the industry. As a result, it will be a bit more, we'll need a bit more boots on the ground to effectively educate medical professionals about these new procedures and the use of these products. Surrounding this momentum is the initial ramp-up of our newly launched products, the Hydra ARO and the DEXA-L. But we're also strong contributors to our franchisor main products, such as our Silos SI Fusion products, as well as the Zip series of products. During the third quarter, we were very pleased, busy preparing for our commercial launch of our FDA-cleared product, our new facet pain device, the Hydra ARO, and our new exciting DEXA-L anterior lumbar fusion system. With regard to the HYDRA-ARO, there was a trademark that we needed to address, and so we had to change the name of the product from AERO to ARO. We worked diligently on this product to produce initial surgeries, which commence early in the third quarter. Initially, surgeries are continuing, and we are gaining lots of positive feedbacks and we have made some minor modifications ahead of the next order of inventory, which is currently underway. We do believe that this product series is revolutionary and has a strong future ahead. We anticipate more doctors will start implanting this product throughout the remainder of the year and in 2026. Sales efforts so far are very strong. We have approximately 10 kits in the field for the Hydra ARO and we are planning on adding more kits in the coming months. Our longer-term goal that we are working on is to convert the products over to a disposable kit, which is something slated for 2026. There are some logistics that we need to accomplish for this to be completed, but we do believe that this is a long-term for tools for the Hydro ARO will be disposable and we'll keep you appraised as that occurs. Now pivoting to DEXA. We officially launched the DEXA-L during the latter part of the third quarter, and we're making strong inroads with the product. DEXA-L is part of the Aurora patented DEXA technology platform, which is a series of products that are the world's first bone density-matched implants. We have high hopes for the DEXA-L as subsidence issues occur more frequently in lumbar section of the spine due to heavier loads and that are put in this portion of the spine. In addition, CDC estimates that almost half of the U.S. population over 50 years of age have low bone mass. This equates to millions of patients that have an implant that needs to match their patient's bone density and have had spine surgery. We're extremely excited about this launch and believe that the product will be a key growth catalyst going forward. Moving on to major revenue contributor for Aurora is our silo platform, which has a series of proprietary products, including the silo, silo allograft systems, and the silo fixation system, where revenues were over $2 million in the third quarter, which compares to the launch of the, to the strong sales continuing in the third quarter. The silo proprietary product platform over the last few years has gained significant traction in a short amount of time. To reiterate that I said earlier, it's important to remember that we're still in early innings in the SI joint market. The market opportunity that we expect for silo is to continue to expand and grow and gain more market share. We're also pleased to see new publications on the silo systems. in the past few months, including that one evaluated its biomechanical performance compared to its traditional posterior transverse technical, which demonstrated that the silo's superior performance and lead it to a positive patient outcomes. That concludes my formal comments. I will now turn the conversation over to Matt Goldstone, Aurora Spine's Chief Commercial Officer. Matt, please proceed.