Aurora Spine Corporation Reports First Quarter 2021 Financial Results

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICE

Continued enchancment in gross margin to 49% within the first quarter 2021 validates the Firm’s present technique of introducing extra proprietary merchandise and the addition of the Ache division.

CARLSBAD, Calif., Could 27, 2021 (GLOBE NEWSWIRE) — Aurora Backbone Company (TSXV: ASG) (OTCQB: ASAPF), a designer and producer of revolutionary medical gadgets that enhance spinal surgical procedure outcomes, as we speak introduced monetary outcomes for the three-months ended March 31, 2021.

All figures are in US {dollars} until in any other case acknowledged.

Abstract of First Quarter 2021 Monetary Outcomes and Current Accomplishments

• Improved Margins – Whereas income was akin to the primary quarter 2020, margins elevated to 49% in first quarter 2021 in comparison with 35% in first quarter 2020. The elevated margin was as a result of shift in gross sales from third-party decrease margin merchandise to larger margin proprietary merchandise.
• Payroll Safety Program Mortgage (PPP) – The Firm utilized for and acquired a second PPP mortgage within the quantity of $350,140. This might be used for the supposed function of supporting payroll for the lined interval.
• SiLO Posterior SI Joint Fusion System (SiLO)– Aurora Backbone launched its revolutionary SI joint fusion system in first quarter 2021. The SiLO^TM is designed particularly for posterior sacroiliac joint fusion.
• Apollo System – The Firm has acquired U.S. Meals and Drug Administration (FDA) 510(okay) clearance for its proprietary APOLLO Anterior Cervical Plate (ACP) system, that includes a smooth 1.9mm design, with Hyper-Angulation™ variability within the Cephalad-Caudal screw angulation of 32° – Freedom to Angulate™.
• IRB – The Firm has acquired Institutional Evaluation Board (IRB) approval for its new multicenter research of its ZIP™ Interspinous Fixation machine for sufferers affected by again ache attributable to symptomatic degenerative disc illness. This multicenter research will contain 100 sufferers with outcomes anticipated this yr.
• Coaching – Aurora continued to conduct superior coaching periods and cadaver labs that launched main orthopedic, neurosurgical, and ache administration physicians to the ZIP™ and SiLO™ implants.
• OTCQB Itemizing in america – Aurora Backbone was listed on the OTCQB in america in first quarter 2021 making its inventory extra accessible to the American market.

“We have been happy with our proprietary product portfolio conversion and income accelerated as the primary quarter progressed,” stated Trent Northcutt, President and Chief Govt Officer. “Regardless of the headwinds we confronted in January, February, and early March attributable to Covid-19 restrictions on elective surgical procedures, we exceeded our personal inside expectations for the quarter with sturdy leads to March as these surgical procedure restrictions eased. The corporate made a proactive funding in cadaveric coaching and schooling that may proceed with the announcement of our Multi-center ZIP-Screwless™ research. We’re excited by the potential to generate extra income development from our new Ache Care division and proprietary merchandise.” 

New Merchandise

SiLO

“We’re excited concerning the Si Joint market,” stated Mr. Northcutt. “Previously few months, Aurora has been conducting superior coaching periods and cadaver labs that launched main neurosurgical, orthopedic and ache administration physicians to the SiLO^TM SI Fusion System. With many procedures already accomplished, the SiLO system has been secure and efficient in an outpatient setting. The IRB approval permits Aurora to launch a multi-center potential scientific research to research the efficacy of the SiLO machine managing low again ache and bettering high quality of life in sufferers affected by SI Joint ache.”

APOLLO

“There are an estimated 180,000 cervical fusion procedures carried out in america every year to alleviate compression on the spinal twine or nerve roots. Receiving FDA 510(okay) clearance for the APOLLO™ (ACP) system displays Aurora Backbone’s dedication to ship revolutionary, trendy know-how for the anterior cervical backbone and to assist optimistic scientific outcomes,” stated Trent Northcutt, President and CEO, at Aurora Backbone. “The launch of APOLLO™ (ACP) is essential to our long-term cervical implant technique and represents a big alternative for development, as cervical backbone procedures comprise an roughly $2.6 billion phase of the worldwide backbone market.”

Mr. Northcutt added, “This FDA clearance is a crucial piece to the puzzle for advancing Aurora Backbone’s key initiative of bringing extra proprietary-based merchandise to {the marketplace} and reducing our reliance on third-party merchandise. Gross sales of cervical plates in fiscal 2019 represented roughly 10% of revenues for Aurora and the APOLLO plate will allow Aurora to transform one other portion of the corporate’s income base right into a proprietary product and permit us to seize larger margins. This new product can even assist gross sales of our TiNANO™ cervical cages and allow us to develop extra merchandise round our DEXA™ patent, which matches implants to a affected person’s bone density. This approval is a superb step for Aurora in fiscal 2021 and we’re hopeful to ship a number of new key merchandise all year long.”

2021 Outlook
Whereas the Firm doesn’t subject formal steering, it’s anticipated that income will proceed to enhance within the following quarters because the pandemic improves and hinderances to elective surgical procedure are eliminated. Aurora Backbone will proceed to develop and market new merchandise all through 2021 and 2022 to fill out its portfolio of spinal gadgets. The Firm will proceed to coach surgeons and ache interventionalists on its minimally invasive merchandise. We’ll proceed to biomechanically take a look at our proprietary merchandise to show their efficacy at offering fusion and lowering ache.

Monetary Outcomes

SELECTED BALANCE SHEET INFORMATION

The next desk summarizes chosen key monetary information.

ANALYSIS OF FINANCIAL CONDITION AND FINANCIAL PERFORMANCE

Since inception, Aurora has centered on analysis and growth adopted by advertising and marketing and surgeon schooling to develop our enterprise. The Firm has expanded the vary of merchandise supplied, utilized for and acquired FDA approval for a number of merchandise and elevated the variety of hospital approvals.

The Firm has a number of FDA cleared merchandise and procedures, all designed to enhance backbone affected person outcomes, drive continued surgeon pursuits, and supply advantages that ship worth to hospitals and sufferers. Stock is on-hand to assist future gross sales and hospital approvals have elevated.

SELECTED QUARTERLY INFORMATION

The Firm’s practical foreign money is the US greenback (USD). The practical foreign money of the Firm’s US subsidiary Aurora is USD.

Working outcomes for every quarter for the final two fiscal years are introduced within the desk under.

* Adjusted by good points and (losses) on sale of apparatus.
** EBITDAC is a non-GAAP, non IFRS measure outlined as Earnings earlier than Curiosity, Tax, Depreciation, Amortization and Inventory primarily based compensation. This quantity contains Good points (losses) on sale of property and gear and Different earnings (expense).
*** Excellent choices and warrants haven’t been included within the calculation of the diluted loss per share as they might have the impact of being anti-dilutive.

Because the Firm has been within the growth stage, quarterly working outcomes have assorted up to now and will fluctuate considerably sooner or later. Accordingly, the data above shouldn’t be essentially indicative of outcomes for any future quarter.

In the course of the three months ended March 31, 2021 the Firm generated income within the quantity of $2,261,890 in comparison with $2,259,251 throughout the identical interval the earlier yr, a rise of roughly $3k. January was notably weak with concern over Covid-19 variants, however every successive month noticed important rising gross sales.

In the course of the present quarter, price of gross sales was $1,151,572 and gross revenue was $1,110,318 as in comparison with $1,478,037 and $781,214, respectively within the comparable interval final yr. This represents a gross margin enchancment of 14%, from 35% of revenues final yr to 49% this yr. Gross margin improved with the mixing of recent merchandise, altering product combine in direction of extra ZIP gross sales within the rising Ache division and conversion of third-party merchandise.

The development in gross margin was largely offset by the elevated spending on creating and introducing our new merchandise into the ache market. Working bills in the course of the present quarter have been $1,672,131 in comparison with $1,341,757 in the course of the comparable interval, a rise of $330,374.  The principal driver was advertising and marketing expense which elevated by $189,380 most of which has been focused in direction of the introduction of our ZIP and SiLO merchandise and procedures to the ache market, together with multi-day doctor coaching periods. R&D additionally elevated by $51,790 instantly attributable to the event of our new SiLO FX and Dexa merchandise. Equally consulting charges rose as we engaged with companions in growth and testing of our new merchandise and related tooling. The lifting of journey restrictions that have been in place in 2020 additionally contributed to the rise in G&A.

In the course of the present quarter, EBITDAC was ($191,429), in comparison with ($294,721) in the course of the comparable interval and displays the above famous modifications plus the Payroll Safety Program mortgage achieve of $175,070.

BUSINESS OF AURORA

Aurora is concentrated on bringing new options to the spinal implant market by means of a sequence of revolutionary, minimally invasive, regenerative spinal implant applied sciences. The Firm’s objective is to enhance sufferers’ high quality of life by creating and distributing spinal implant merchandise that relieve again ache and protect spinal bone construction and anatomy. Further info may be accessed at www.aurora-spine.com or www.aurorapaincare.com.

Neither TSX Enterprise Change nor its Regulation Companies Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Change) accepts duty for the adequacy or accuracy of this launch.

Ahead-Trying Statements

This information launch incorporates forward-looking info that includes substantial identified and unknown dangers and uncertainties, most of that are past the management of Aurora Backbone, together with, with out limitation, these listed underneath “Danger Components” and “Cautionary Assertion Concerning Ahead-Trying Data” in Aurora Backbone’s closing prospectus (collectively, “forward-looking info”). Ahead-looking info on this information launch contains info in regards to the proposed use and success of the corporate’s merchandise in surgical procedures. Aurora Backbone cautions traders of Aurora Backbone’s securities about vital components that might trigger Aurora Backbone’s precise outcomes to vary materially from these projected in any forward-looking statements included on this information launch. Any statements that categorical, or contain discussions as to, expectations, beliefs, plans, aims, assumptions or future occasions or efficiency are usually not historic details and could also be forward-looking and will contain estimates, assumptions and uncertainties which might trigger precise outcomes or outcomes to vary unilaterally from these expressed in such forward-looking statements. No assurance may be on condition that the expectations set out herein will show to be appropriate and, accordingly, potential traders shouldn’t place undue reliance on these forward-looking statements. These statements communicate solely as of the date of this press launch and Aurora Backbone doesn’t assume any obligation to replace or revise them to replicate new occasions or circumstances.

Contact:

Aurora Backbone Company

Trent Northcutt
President and Chief Govt Officer
(760) 424-2004

Chad Clouse
Chief Monetary Officer
(760) 424-2004
www.aurora-spine.com

Adam Lowensteiner
LYTHAM PARTNERS, LLC
Phoenix | New York
Phone: 646-829-9700
asapf@lythampartners.com