Aurora Spine Corporation Files Condensed Consolidated Financial Statements for the Three and Six Months Ended June 30, 2017
August 25 2017 - 4:01PM
NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED
STATES WIRE SERVICES
Aurora Spine Corporation (“Aurora Spine” or the “Company”)
(TSXV:ASG) announces financial results for the three and six months
ended June 30, 2017.
To our Shareholders:
During the six months ended June 30, 2017 we
generated revenues in the amount of $2,962,401 compared to
$3,442,217 during the same period the previous year, a decrease of
14%. The primary drivers of this reduction were:
- A reduction of approximately $412k in Biologics sales. These
sales were predominantly through one hospital where a change of
control occurred and Aurora was required to amend payment terms. We
do not see Biologics sales returning to previous levels; and
- A reduction attributable to a change in the distribution model
and pricing with one of the Company’s key, high volume surgeons.
The Company expects that the shortfall in sales from this situation
will be fully replaced by year end.
During Q2 2017, we continued to expand the availability of our
family of products in our Screwless Procedure™, a cutting-edge
surgical approach to spine fusion. The Screwless Procedure
features: our patented ZIP® MIS Fusion System, our TiNano®
Interbody cages, and our COMPASS 4D™ retractor system.
Highlights from Q2 2017
- On April 6, 2017, the Company completed a non-brokered private
placement of common shares (the “April 2017 Offering”).
Pursuant to the April 2017 Offering, the Company issued 1,670,000
common shares at a price of CDN$0.18 (US$ 0.1349) per share for
aggregate gross proceeds of CDN$300,600 (US$ 225,209). Share
issuance costs totalled CDN$2,246 (US$1,763). A director of the
Company subscribed for an aggregate of 835,000 common shares for
cash consideration of CDN$150,300 (US$ 112,642).
- On April 12, 2017, the Company announced the issuance of its
United States Patent entitled, “Polyaxial Interspinous Fusion
Implant and Bone Growth Stimulation System”. In addition to
Aurora’s implant family of ZIP® ISPs, including its ZIP Ultra®, ZIP
51™, ZIP LP™, Dyna-ZIP™ and ZIP-Flex, this patent application
covers the company’s first polyaxial implant design.
The polyaxial ZIP® Interspinous patent issuance
is another milestone in Aurora Spine’s history. Our latest patent
was issued for our newest interspinous device design that permits
for full polyaxial maneuverability of the implant components in
difficult situations during minimally invasive fusion cases. This
newly issued patent features our patented ONE-STEP™ locking
mechanism that eliminates the use of a set screw in Aurora’s
Screwless Procedure™ surgeries.
- On April 14, 2017, the Company signed a new lease with its
landlord which terminates the original lease effective May 31,
2017. The new lease terms are effective June 1, 2017 and terminate
on March 31, 2023. The new lease reduces the monthly rent from
$28,718 for 17,288 square feet to $15,000 for 5,464 square feet for
the first 22 months which includes a termination fee and Common
Area Maintenance (“CAM”) charges. Beginning at month 23, the
monthly payment decreases further to $7,879 plus CAM fees and
increases by 3% each year beginning at month 25 of the lease.
- On May 31, 2017, the Company announced that it has selected its
proprietary implant locking technology covered by United States
Patent entitled "POLYAXIAL INTERSPINOUS FUSION IMPLANT AND BONE
GROWTH STIMULATION SYSTEM" for out-licensing opportunities for
medical and industrial applications.
The Company is now offering its new Polyaxial
ZIP® Interspinous device patent for out-licensing or private label
opportunities. The combination of the proven ONE-STEP™ locking
mechanism, with no setscrew, and the polyaxial feature may be a
unique opportunity in new product development for orthopedic and
other medical and industrial manufacturers. The patented
features offer new design directions for hardware connections that
do not rely on conventional threads and screws thus preventing
hardware loosening related problems.
SELECTED BALANCE SHEET INFORMATION
The following table summarizes selected key financial data.
As at |
June 30, 2017$ |
December 31, 2016$ |
Cash |
107,849 |
192,842 |
Trade receivables |
1,047,308 |
1,228,553 |
Prepaid expenses and deposits |
181,496 |
318,386 |
Inventory |
2,867,249 |
2,996,940 |
Current assets |
4,203,902 |
4,736,721 |
Intangible assets |
271,950 |
210,966 |
Property and equipment |
1,683,800 |
2,095,565 |
Total assets |
6,159,652 |
7,043,252 |
Current liabilities |
2,056,041 |
2,400,196 |
Long-term liabilities |
1,377,963 |
1,172,963 |
Common share equity |
19,582,424 |
19,358,978 |
The Screwless Procedure has been developed to increase the
possibility of significant benefits to patients, hospitals, and
surgeons, including reduced surgery time, less blood loss, shorter
hospital stays, and significantly faster recovery time. These
benefits will continue to be the driving force of Aurora Spine’s
competitive advantage and growth.
In Q2 2017, we continued driving growth by training surgeons and
distributors on Aurora Spine’s unique technology and increasing the
reach of our sales force.
In Q3 2017, we will focus on:
- Aggressively continuing our strategy of building a revenue base
in the U.S. market. We will accomplish this by expanding product
usages with our current distribution network, developing new
distribution channels and training new surgeons on the Aurora
product advantages; and
- Expanding our direct sales teams in the US.
We expect that these initiatives will create
value for our shareholders. Management and I thank our
shareholders for their continued support in these endeavors.
We will look to extend our technology position further with
minimally disruptive procedural solutions for the spine.
None of this would be possible without the dedication and
commitment of our hardworking colleagues at Aurora. I want to thank
them for the great accomplishments they have made this year, for
Aurora and ultimately, for patients. They have embraced change and
risen to the numerous challenges before them, and I am grateful for
their ongoing support of our company and our mission.
I would also like to thank you, our investors, for your
continued support. Together, we have built a strong foundation, and
I look forward to the opportunities ahead of us. I am truly
grateful to be part of an organization that makes such a positive
improvement in the lives of patients around the world.
The statements together with the Management Discussion and
Analysis can be found on SEDAR at www.sedar.com.
Trent J. NorthcuttPresident and Chief Executive
Officer
About Aurora Spine Aurora Spine
is an early stage company focused on bringing new solutions to the
spinal implant market through a series of screwless, innovative,
minimally invasive, regenerative spinal implant technologies.
Aurora Spine continues to position itself at the forefront of
spinal surgery procedures, focusing on minimally invasive spine
surgery technologies. Aurora Spine is changing spine surgery by
focusing on disruptive technologies following the Company's
commitment to - Simplifying the Complex.
Forward-Looking StatementsThis
news release contains forward-looking information that involves
substantial known and unknown risks and uncertainties, most of
which are beyond the control of Aurora Spine, including, without
limitation, those listed under "Risk Factors" and "Cautionary
Statement Regarding Forward-Looking Information" in Aurora Spine's
final prospectus (collectively, "forward-looking information").
Forward-looking information in this news release includes
information concerning the proposed use and success of the
company’s products in surgical procedures. Aurora Spine cautions
investors of Aurora Spine's securities about important factors that
could cause Aurora Spine's actual results to differ materially from
those projected in any forward-looking statements included in this
news release. Any statements that express, or involve discussions
as to, expectations, beliefs, plans, objectives, assumptions or
future events or performance are not historical facts and may be
forward-looking and may involve estimates, assumptions and
uncertainties which could cause actual results or outcomes to
differ unilaterally from those expressed in such forward-looking
statements. No assurance can be given that the expectations set out
herein will prove to be correct and, accordingly, prospective
investors should not place undue reliance on these forward looking
statements. These statements speak only as of the date of this
press release and Aurora Spine does not assume any obligation to
update or revise them to reflect new events or circumstances.
For more information, please contact:
Aurora Spine Corporation
Trent Northcutt
President and Chief Executive Officer
(760) 424-2004
Sarina Mason
Chief Financial Officer
(760) 424-2004
www.aurora-spine.com
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