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Aurora Spine Corporation Reports Third Quarter 2022 Results, Canadian Business Journal

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CARLSBAD, Calif., November 21, 2022 (GLOBE NEWSWIRE) — Aurora Spine Corporation (“Aurora Spine” or the “Company”) (TSXV: ASG) (OTCQB: ASPF) develops innovative medical devices that improve is a designer and manufacturer. Spinal Surgery Results today announced financial results for the third quarter ended September 30, 2022. All figures are in US dollars.

Q.3 When Recently highlight

  • Sales growth – Sales in the third quarter continued to be strong, up 26% compared to the third quarter of 2021.
  • Positive EBITDAC – It was the second consecutive quarter of positive EDITDAC at $150,687 in Q3 and $96,285 in Q2, compared to Q1 2021 ($153,972) and Q3 ($171,247). EBITDAC is a non-GAAP financial measure (defined below).
  • Dexa Sales – DEXA sales increased to 10.5% of total sales in the quarter, compared to 5.3% in Q2 2022. This was achieved by new sales of the Discovery PEEK cervical cage without decline.
  • Awards – Aurora Spine received the 2022 Best New Spine Technology Award at the annual North American Spine Society (NASS) conference for its innovation in DEXA bone density-matched spinal implants.
  • FDA Clearance Zip – Received new FDA approval for lumbar spinal stenosis for the ZIP™ series of MIS implants.
  • FDA clearance silo TFXMore – FDA 510K clearance for the patented SiLO TFX MIS Sacroiliac Joint Fusion System.

Management commentary

Aurora Spine’s President and CEO, Trent Northcutt, said: As we continue to make progress on the sales front and are gearing up for 2023, we are in the process of seeking additions to our team and improving our sales staff. We want to step up our sales efforts because we have some important new products that will serve as This includes his SiLO TFX, which recently received FDA clearance. It’s starting to evolve. ”

Northcutt continues: In the third quarter, he prepared for the company’s presence at the North American Spine Society (NASS), a major annual industry conference. Having both the SiLO TFX and DEXA products on hand to introduce and share with medical professionals, I believe this event was a very successful event for the company. We have made many new relationships from his NASS and are working to adopt Aurora products. Another highlight for NASS is that the company won his 2022 Best New Spine Technology Award for innovation in spinal implants that match his DEXA bone density. This adds credibility to the innovative products we develop with Aurora and makes the DEXA technology platform even more known. ”

Northcutt concludes: We have been able to get FDA approval for our new products and are working diligently to bring them to market. We are implementing plans to commercialize approved products in 2022, specifically SiLO TFX. We have many positive achievements in 2022 and look forward to another year of strong growth, with a very solid position heading into 2023. ”

Aurora Spine Chief Financial Officer Chad Clouse added: This has been achieved by improving gross margins with a strong product mix and successfully reducing R&D expenses now that certain projects have been completed. The company’s capital structure remains strong and it continues to reduce receivables through recent collections. We expect the balance of receivables to decrease in the future. ”

Financial results

Total revenue for the third quarter of 2022 was $3.65 million, up 26% from $2.89 million in the same quarter a year ago and $4.07 million in the second quarter of 2022. More and more surgeries are incorporating Aurora products such as ZIP and SiLO, and surgeries using Aurora products in surgical centers as hospitals and surgical centers return to normal operations after the pandemic.

Gross margin on total revenue was 53.2% in Q3 2022, compared with 46.9% in Q3 2021 and 52.6% in Q2 2022. A strategy to sell more exclusive Aurora Spine products. As the company continues to focus on growing sales of its proprietary products, gross margins are likely to improve further, depending on sales mix and delivery costs.

Total operating expenses for the third quarter of 2022 were $2,058,000 compared to $1,724,000 in the third quarter of 2021 and $2,368,000 in the second quarter of 2022. There was an increase in the number of new key sales representatives and an increase in marketing expenses, which decreased sequentially from the second quarter of 2022 due to lower R&D costs.

EBITDAC (a non-IFRS measure of non-GAAP figures defined as earnings before interest, taxes, depreciation, amortization and share-based compensation) compared to $(0.17) million in the third quarter of 2021 and $160,000 in the third quarter of 2022. $100,000 in Q2 2022. EBITDAC improved sequentially due to improved gross margin and lower certain operating expenses.

Net loss in Q3 2022 was $(0.116) million, compared to a loss of $(0.160) million in Q2 2022, compared to a loss of $(0.368) million in Q3 2021. Improved from loss. Basic and diluted net (loss) earnings per share of $(0.00) per share in Q2 2022, $(0.00) per share in Q2 2022 and 3Q 2021 The quarter was (0.01) dollars per share.

Full financial statements are available on SEDAR (www.sedar.com).

Selected balance sheet information

The following table summarizes selected key financial data.

like September 30, 2022
USD
June 30, 2022
USD
December 31, 2021
USD
cash 644,669 758,980 3,172,575
accounts receivable 3,736,634 4,057,976 2,668,174
Prepaid Fees and Deposits 678,150 699,302 674,687
stock 2,708,416 2,856,730 1,889,640
current assets 7,767,988 8,372,988 8,405,076
intangible assets 945,464 949,117 854,331
Tangible fixed assets 2,202,319 1,937,480 1,304,242
Total assets 10,915,652 11,259,585 10,563,649
Current Liabilities 3,136,410 3,450,121 2,627,281
fixed liability 2,769,376 2,721,942 2,367,056
share capital 25,087,474 25,087,474 25,087,474

Selected Quarterly Information

Our functional currency is the United States Dollar (USD). The functional currency of our US subsidiary, Aurora, is the US dollar.
Quarterly operating results for the last two fiscal years are presented in the table below.

end of quarter September 302022
$
June 30, 2022
$
March 31, 2022
$
December 30, 2021
$
September 30, 2021
$
June 30, 2021
$
March 31, 2021
$
December 31, 2020
$
Earnings 3,648,680 4,067,166 3,551,964 2,964,980 2,892,540 2,425,397 2,261,890 2,437,228
Cost of sales (1,706,677 ) (1,926,683 ) (1,650,355 ) (1,602,047 ) (1,536,244 ) (1,421,393 ) (1,151,572 ) (1,533,983 )
gross profit 1,942,003 2,140,483 1,901,609 1,362,933 1,356,296 1,004,004 1,110,318 903,245
operating expenses 2,057,655 2,367,985 2,288,186 2,266,897 1,724,513 1,879,479 1,672,131 1,400,165
EBITDAC** 150,687 96,285 (153,972 ) (566,569 ) (171,247 ) (480,837 ) (191,430 ) 185,104
Net profit (loss) (115,652 ) (159,667 ) (386,577 ) (903,964 ) (368,217 ) (700,405 ) (386,743 ) (42,181 )
Basic and diluted earnings (loss) per share*** (0.00 ) (0.00 ) (0.01 ) (0.01 ) (0.01 ) (0.01 ) (0.01 ) (0.00 )

* Adjusted for gains (losses) on sales of facilities.
** EBITDAC is a non-GAAP, non-IFRS measure defined as earnings before interest, tax, depreciation, amortization and share-based compensation. This amount includes gains (losses) on the sale of property, plant and equipment and other income (expenses).
*** Unsettled options and warrants are not included in the diluted loss per share calculation as they are anti-dilutive.

Conference call details

Date and time: Monday, November 21, 2022 at 11:00 AM ET/8:00 AM PT

Call-in information: Interested parties may access the conference call by dialing (844) 861-5497 or (412) 317-5794.

Webcast: Interested parties can access the conference call via a live webcast available at https://app.webinar.net/Rx9E6Lbwn4k or the company’s Available in the Investor Relations section of the website. Spine.com/investors-v02.

Replay: A conference call replay of the call is available through November 28, 2022 at (877) 344-7529 or (412) 317-0088, replay access code 5080066. Additionally, webcast replays are available in the IR section. 90 days on our website https://www.aurora-spine.com/investors-v02 or https://app.webinar.net/Rx9E6Lbwn4k.

About Aurora Spine

Aurora Spine is focused on bringing new solutions to the spinal implant market through a series of innovative, minimally invasive, regenerative spinal implant technologies. Additional information can be accessed at www.aurora-spine.com or www.aurorapaincare.com.

Neither TSX Venture Exchange nor its regulated service providers (as those terms are defined in the TSX Venture Exchange Policy) are responsible for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release contains forward-looking information that involves known and unknown risks and uncertainties. Most of them are beyond Aurora Spine’s control, including but not limited to those described in “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Information”. Aurora Spine’s final prospectus (collectively, “Forward-Looking Information”). Forward-looking information in this news release includes information regarding the proposed use and success of the company’s products in surgical procedures. Aurora Spine advises investors in Aurora Spine securities about important factors that could cause Aurora Spine’s actual results to differ materially from those projected by the forward-looking statements contained in this news release. I warn you. Statements that express or involve expectations, beliefs, plans, objectives, assumptions, or discussions of future events or performance are not historical facts, may be forward-looking, and may not give rise to actual results or results. differ unilaterally from those expressed in such forward-looking statements that may involve certain estimates, assumptions and uncertainties. There is no guarantee that the expectations set forth herein will prove correct.The statement you are looking for.These statements speak only as of the date of this press Aurora Spine undertakes no obligation to update or revise them to reflect new events or circumstances.

contact:

Aurora Spine Corporation

Trent Northcutt

President and Chief Executive Officer

(760) 424-2004

Chad Close

CFO

(760) 424-2004

www.aurora-spine.com

Adam Lowensteiner

Lytham Partners LLC

Phoenix | Phoenix | New York

Phone: 646-829-9700

[email protected]


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Aurora Spine Corporation Reports Third Quarter 2022 Results, Canadian Business Journal

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