Aurora Spine Corporation Announces 2017 Year End Results
May 02 2018 - 9:06AM
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 year ended December
31, 2017.
To our Shareholders:2017 was a productive year
for Aurora Spine. During 2017 we continued the integration of
our family of products into our Screwless Procedure™, a
cutting-edge surgical approach to spine fusion. The Screwless
Procedure features: our ZIP® MIS Fusion Systems, our TiNano®
Interbody cages, and our COMPASS 4D™ MIS lateral retractor
system.
Highlights from
2017
- On April 12, 2017, Aurora announced the issuance of its United
States Patent entitled, “Polyaxial Interspinous Fusion Implant and
Bone Growth Stimulation System”. An addition to Aurora’s
implant family of ZIP® ISPs, the Polyaxial ZIP® permits for full
maneuverability of the implant components in difficult situations
during minimally invasive fusion cases. Aurora will either develop
this proprietary technology internally as funds permit or offer its
new Polyaxial ZIP® Interspinous device patent for out-licensing or
private label opportunities.
- During the year, the Company reduced its General and
Administrative and Professional Fee expenses in 2017 by a combined
$218,234 or 16.7% as compared to 2016. Much of this expense
reduction (over 50% from $254,160 in 2016 to $157,940 in 2017) was
a result of Aurora successfully renegotiating a new lease with its
landlord that terminates on March 31, 2023. The total expense
reduction was even more significant in Q4. During the last quarter
Operating expenses were lowered by more than $250,000 (16.8%) to
$1,230,740 compared to $1,503,071 in Q4 2016.
- Throughout 2017, the Company completed several private
placements comprising both equity and debt. More than US$700,000
was raised to support operations and a significant portion of the
funding came from a major shareholder and director of the
Company.
- The Company participated at the 2017 North American Spine
Society Annual Meeting held in October 2017 at the Orange County
Convention Center in Orlando, Florida. Aurora Spine showcased its
Screwless Procedure™ product portfolio and highlighted its latest
fusion technologies, including the patented ZIP® MIS Interspinous
fusion systems.
Highlights subsequent to year end
- On February 6, 2018, the Company strengthened its balance sheet
through completion of an equity offering for aggregate gross
proceeds of more than US$740,000.
In 2017, we continued driving growth by training surgeons and
distributors on Aurora Spine’s unique technology and increasing the
reach of our sales force.
The management team also was able to achieve
lower manufacturing costs on most of its Ti-PEEK products. As such,
within cost of sales, Aurora recorded a non-cash adjustment to the
inventory standard cost of these products, resulting in a one-time
write down of approximately $405K. The adjustment resulted in a 7%
decrease in gross margin for the year. Without the adjustment,
margins would be little changed from the previous year. More
importantly, going forward, the gross profit margin on these
products will increase reflecting the lower inventory cost on the
Company’s balance sheet.
We are optimistic about 2018. We have added some outstanding
surgeons to our customer base that value our products and wish to
be a part of our success. We continue to review our new product
development within the framework of financial responsibility to
achieve our long-term growth and profitability objectives.
We remain fully committed to developing our U.S. sales through
engaging new and existing distributors and improving our direct
relationship experience with our surgeons. This should allow us to
generate increased sales and provide improved customer service
going forward. In 2018 we also expect to strengthen our sales team
in the U.S.
We are certain that these initiatives will
create value for our shareholders. Management and I thank our
shareholders for their continued support in these endeavors.
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 Financial 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 focused on bringing new solutions to the spinal implant market
through a series of innovative, minimally invasive, regenerative
spinal implant technologies.
For more information, please
contact:
Aurora Spine Corporation Trent
Northcutt
Sarina MasonPresident and Chief Executive Officer
Chief Financial
Officer(760) 424-2004
(760) 424-2004
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