Aurora Spine Corporation

Good day and welcome to the Aurora Spine first quarter fiscal year 2026 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 touch-tone phone. To withdraw your question, please press star and then two. Please note 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, Dave, and thanks, everyone, for your patience. Sorry for the delay. Welcome, and thank you for joining us today to conduct an update with the investors and review the financial results for Aurora Spine for the first quarter fiscal year. that ended March 31st, 2026. With us on the call representing the company today are Trent Northup, President and CEO of Aurora Spine, Matt Goldstone, Chief Commercial Officer, 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 at 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 achievements to be material or different from those projected. For full discussion of these risks, uncertainties, and factors, you are encouraged to read Aurora Spine's documents unfiled 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, 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 is to the most directly comparable GAAP measures in accordance with SEC regulation sheet 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. 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 Commercialization Officer, to review our sales initiatives. After Matt makes his remarks, I will pass the call to Chad Klaus, our chief financial officer, who will then briefly review the company's financials. Afterwards, we will have some brief concluding remarks and then open to the call to answer any questions you may have. My remarks will be brief as we've only been a few weeks since our last conference call. The first quarter results showed some positive, despite a slower than anticipated start to the fiscal year. Some of the sluggishness early in the quarter were weather-related, which was relevant as we booked higher sales the quarter progressed. March was particularly strong, and so without any other sales from the Hydra Aero, it was refreshing to see our core products carry the load, as we obviously not only have loyal customer base, but also making their way into more interventionalists and surgeons' hands. We obviously have more work to do, especially on the spine surgeon side, which has been a bit tippet. But it's expected to pick up in the back half of the new year. Sales representatives that specialize in spine side of the business recently joined Aurora. It is very timely, as we have re-released our Apollo plate, which has helped us selling our DEXA branded products, including the DEXA-C for cervical and DEXA-L for the lumbar procedures. We have high hopes for DEXA-L as subsides occurs more frequently in the lumbar section of the spine due to heavier loads that are put into proportion of the spine. In addition, the CDC estimates that almost half of the U.S. population over 50 years of age will have low bone mass. This equates to millions of patients that need an implant that matches their bone density when having spine surgery. While we are on the topic of DEXA, it is important to note that subsequent to the end of the first quarter, we announced the issuance of a fourth U.S. patent related to our proprietary DEXA technology platform. The recent issued patent titled Bone Density Scan Result Match Orthopedic Implants and Methods of Use. further strengthens the Aurora Spine intellectual property portfolio surrounded patient-specific bone density matched implants selected for use. The patent technology describes methods of obtaining the patient's bone density information, including the DEXA T-score or bone density measurement. Selecting an implant and having bone density levels matched to the patient's native bone at the implantation site and implanting the selected device. By giving surgeons an implant option designed around bone density, Aurora is advancing a more personalized and intelligent approach to spine surgery. Throughout the issuance of this patent, Aurora's competitive position will improve and support the continued development of the next generation DEXA technology-based implant across the company's spinal implant portfolio. We believe the DEXA products will be a key growth catalyst in 2026, especially that our Apollo plate is now in stock and we have fulfilled orders to our current DEXA products. We have begun to ramp up marketing efforts on the platform and expect it to build momentum through the year. The Silo platform, which is primarily dominated by the TFX, continues to be a major contributor to our revenues. While sales of Silo and Q1 are in line with the same quarter a year ago, we are focused on introducing a couple of product extensions to the franchise that will be able to offer more variety of SI joint products for paid interventionalists. The first product that we expect to be ready to go to market over the summer is a product for SI joint, and we will be administrated by using a lateral oblique approach, which is a different approach than TFX uses. The lateral oblique approach is the number two type of approach currently used in the SI joint pain, and the feedback we receive from our sales team has been giving us the The popularity of the lateral oblique approach that demand is for such of a product would be a worthwhile to add to our existing silo franchise. We are excited about the release of this product as we are planning for it to be Aurora's first product with a disposable kit. We are in the midst of lining up doctors to use the product upon launch and believe this will act as a good catalyst back in half of 2026. That concludes my formal comments, and I will now turn the conversation over to Matt Goldstone, Aurora Spine Chief Commercialization Officer. Matt, please proceed.