NOT FOR DISTRIBUTION IN THE UNITED STATES
OR OVER UNITED STATES WIRE SERVICES
-
Company reports record annual revenues of $14.9
million, showing 41% growth
-
-
Management to host conference call
today, May
1, 2023
at
12:00
PM ET -
CARLSBAD,
Calif. – May 1, 2023 -- Aurora
Spine Corporation (“Aurora Spine” or the “Company”) (TSXV: ASG)
(OTCQB: ASAPF), a designer and manufacturer of innovative medical
devices that improve spinal surgery outcomes, today announced the
financial results for fiscal 2022 ended December 31, 2022. All
figures are in U.S. dollars.
Financial and Business
Highlights
- 41% Annual Sales Growth
– The Company has experienced strong sales in each quarter
in 2022. Compared to the previous year sales grew more than 41%
from $10.5 million in 2021 to $14.9 million in 2022. The increases
have been led by a 21% increase of ZIP sales to the pain management
market and a 200% increase in sales of the SiLO Joint fusion
system.
- Increased Margin –
Margins increased to 52.5% for 2022 from 45.8% in 2021 due to
higher margin sales to surgery centers and increased pricing on
certain products.
- Dexa-C
release – The Company released the Dexa-C cervical implant
on a limited basis in Q1 2022 and it accounted for 8% of overall
sales in 2022.
- Patent Issued -
The issuance of United States Patent No: 11,331,199 entitled
"Spinal Implant for Motion Preservation or Fusion". This patent
covers Aurora's ZIPFlex™ Technology for a minimally invasive
posterior interlaminar implant for motion preservation that could
be adapted into a fusion or non-fusion device while implanted in a
patient via a small modular attachment.
- FDA 510(K) Clearance
– The Company received FDA 510(k) clearance for its
patented SiLO TFX MIS Sacroiliac Joint Fixation System.
- FDA 510(K) Clearance
– Received FDA 510(k) clearance for its DEXA SOLO-L™
spinal fusion system. The 3D printed standalone anterior lumbar
interbody fusion device (ALIF) was developed as part of the world’s
first bone density matched implant based on Aurora’s patented DEXA
Technology Platform.
- Zip Stenosis
Indication – The Company received FDA clearance of a new
Lumbar Spinal Stenosis Indication for Use for its ZIP™ family of
MIS implants.
- Award – The
Company received the 2022 Best New Spine Technology Award for its
DEXA bone density-matched spine implant innovation at the annual
North American Spine Society (NASS) meeting.
- Training – The
Company continued to conduct advanced training sessions and cadaver
labs that introduced leading orthopedic, neurosurgical, and pain
management physicians to the ZIP™ and SiLO™ implants.
Management Commentary
Mr. Trent Northcutt, President and Chief Executive Officer of
Aurora Spine, stated, “Fiscal 2022 was an exceptional year for
Aurora Spine. We were able to emerge from the pandemic and deliver
our proprietary products to the marketplace. We were also very
successful in obtaining FDA clearances for a few key products,
including the SiLO TFX, which we believe will pave the way for
future growth. As a result, the company now has several new
products and platforms that enabled us to pivot and focus more on
commercialization and profitability. Along those lines, the company
has made some key improvements and additions to bolster its sales
efforts. We believe we are still in the early stages in many of our
initiatives, including SiLO TFX, which has recently been
successfully implanted into patients.”
Mr. Northcutt continued, “Our other product lines, including ZIP
and DEXA, have also contributed nicely to our results. ZIP
continues to grow its applications, as it received FDA clearance
for a new stenosis indication. In addition, we received positive
interim results from a clinical study that is using the ZIP for
interspinous fusion therapy as a treatment of lumbar spinal
stenosis. So far initial results show the ZIP to be effective and
safe and this data will assist us in detailing it to surgeons and
pain interventionalists. Looking at DEXA, we were very honored to
receive the 2022 Best New Spine Technology Award at this year’s
NASS meeting. We have several kits for DEXA-C in the marketplace
and was a great contributor to Aurora during 2022 on a beta-launch
basis. We have several more kits ready to ship and are in the midst
of placing them over the next few months.”
Mr. Northcutt concluded, “We are very pleased with the progress
we are making at Aurora Spine. We accomplished many things in 2022,
including several successful product launches and we believe 2023
will be another year of growth. As we look to 2023 and beyond, we
have been working diligently in making key improvements to get the
company to the next level and experience continued growth for many
years to come. Our focus is now executing on growing revenues
through the commercialization of the products that received
approvals in 2022, especially SiLO TFX. We have many positive
accomplishments in 2022 and are well positioned to capitalize in
2023 and beyond.”
Mr. Chad Clouse, Chief Financial Officer of Aurora Spine, added,
“Fiscal 2022 was a strong financial year for Aurora, with revenues
growing 41% and achieving improved gross margins. We also invested
heavily back into the business, using our cash flow to improve our
sales team, attend more industry tradeshows, but also ramp up
several clinical studies, which will provide additional data on our
products. Also, subsequent to the fiscal year end, the company also
received approximately $700,000 in proceeds from exercised
warrants, which has enhanced our capital structure.”
Financial Results
Total revenues for the fourth quarter of 2022 were $3.61 million
an increase of 21.7% when compared to $2.96 million in the same
quarter one year ago. The improvement in revenues over 2021 were
due to more procedures conducted in ambulatory surgical and pain
centers that incorporated Aurora products like the ZIP and SiLO. In
addition, due to increased marketing and development (clinical
studies) efforts, the company experienced increases in ZIP sales in
the quarter. Total revenues for fiscal 2022 were $14.88 million
compared to $10.54 million for fiscal 2021, an increase of 41.1%,
primarily due to increased activity at surgical centers and pain
centers, where patients stays are much shorter in duration through
the usage of Aurora products like ZIP and SiLO.
Gross margin on total revenues were 50.6% for the fourth quarter
of 2022, compared to 46.0% in Q4 of 2021. Gross margin on total
revenues for fiscal year 2022 were 52.5%, compared to 45.8% for
fiscal 2021. The year-over-year improvement in gross margins is
attributable to the company’s strategy of selling more proprietary,
Aurora Spine products and into the markets with improved pricing,
like ambulatory surgery centers. As the company continues to focus
on growing sales of proprietary products, gross margin has the
capabilities for additional improvements, dependent upon sales mix
and shipping costs.
Total operating expenses were $2.67 million for the fourth
quarter of 2022, compared to $2.267 million in the fourth quarter
of 2021. Total operating expenses for fiscal 2022 were $9.379
million, which included $1.010 million of non-cash expenses,
compared to $7.543 million, which included $0.790 million of
non-cash expenses for fiscal 2021. Operating expenses increased
during the fourth quarter primarily due to an increase in ZIP study
fees.
EBITDAC (a non-GAAP figure non IFRS measure defined as Earnings
before Interest, Tax, Depreciation, Amortization and Stock based
compensation) was $(0.36) million for the fourth quarter of 2022,
compared to $(0.57) million in the fourth quarter of 2021. EBITDAC
was $(0.26) million for fiscal 2022, compared to $(1.76) million in
fiscal 2021. EBITDAC improvements were due to higher revenue and
gross margin levels from selling more proprietary products.
Net loss was $(0.840) million for the fourth quarter of 2022,
compared to the fourth quarter of 2021 with a loss of $(0.903)
million. Basic and diluted net (loss) income per share was $(0.01)
per share in the fourth quarter of 2022 and $(0.01) per share for
the fourth quarter of 2021. Net loss was $(1.501) million for
fiscal 2022, compared to a loss of $(2.359) million in fiscal 2021.
Basic and diluted net (loss) income per share was $(0.02) per share
for fiscal 2022 and $(0.04) per share in fiscal 2021.
Full financial statements can be found on SEDAR at
(www.sedar.com).
SELECTED BALANCE SHEET INFORMATION
The following table summarizes selected key financial data.
|
As at |
December 31, 2022$USD |
September 30, 2022$USD |
December 31, 2021$USD |
|
Cash |
423,401 |
644,669 |
3,172,575 |
|
Trade receivables |
3,666,310 |
3,736,634 |
2,668,174 |
|
Prepaid expenses and deposits |
186,800 |
678,150 |
674,687 |
|
Inventory |
3,054,173 |
2,708,416 |
1,889,640 |
|
Current assets |
7,330,684 |
7,767,988 |
8,405,076 |
|
Intangible assets |
881,354 |
945,464 |
854,331 |
|
Property and equipment |
1,910,940 |
2,202,319 |
1,304,242 |
|
Total assets |
10,122,978 |
10,915,652 |
10,563,649 |
|
Current liabilities |
3,029,599 |
3,136,410 |
2,627,281 |
|
Long-term liabilities |
2,773,919 |
2,769,376 |
2,367,056 |
|
Share capital |
25,218,093 |
25,087,474 |
25,087,474 |
SELECTED ANNUAL
INFORMATION
The Company’s functional currency is the US
dollar (USD). The functional currency of the Company’s US
subsidiary Aurora is USD. Operating results for each year for the
last two fiscal years are presented in the table below.
|
Fiscal year ended |
December
31,
2022$ |
December 31, 2021$ |
|
Revenue |
14,877,324 |
|
10,544,807 |
|
|
Cost of goods sold |
(7,067,596 |
) |
(5,711,255 |
) |
|
Gross profit |
7,809,728 |
|
4,833,552 |
|
|
Operating expenses |
9,379,029 |
|
7,543,017 |
|
|
EBITDAC** |
(265,311 |
) |
(1,760,222 |
) |
|
Net income (loss) |
(1,501,466 |
) |
(2,359,325 |
) |
|
Basic and diluted income (loss) per share*** |
(0.02 |
) |
(0.04 |
) |
** EBITDAC is a non-GAAP, non
IFRS measure defined as Earnings before Interest, Tax,
Depreciation, Amortization and Stock based compensation. This
amount includes Gains (losses) on sale of property and equipment
and Other income (expense).*** Outstanding options
and warrants have not been included in the calculation of the
diluted loss per share as they would have the effect of being
anti-dilutive.
SELECTED QUARTERLY INFORMATION
The Company’s functional currency is the US
dollar (USD). The functional currency of the Company’s US
subsidiary Aurora is USD. Operating results for each quarter for
the last two fiscal years are presented in the table below.
|
Quarters ended |
December
31,
2022$ |
September 30, 2022$ |
June 30, 2022$ |
March 31, 2022$ |
December 30, 2021$ |
September 30, 2021$ |
June 30, 2021$ |
March 31, 2021$ |
|
Revenue |
3,609,514 |
|
3,648,680 |
|
4,067,166 |
|
3,551,964 |
|
2,964,980 |
|
2,892,540 |
|
2,425,397 |
|
2,261,890 |
|
|
Cost of goods sold |
(1,783,881 |
) |
(1,706,677 |
) |
(1,926,683 |
) |
(1,650,355 |
) |
(1,602,047 |
) |
(1,536,244 |
) |
(1,421,393 |
) |
(1,151,572 |
) |
|
Gross profit |
1,825,632 |
|
1,942,003 |
|
2,140,483 |
|
1,901,609 |
|
1,362,933 |
|
1,356,296 |
|
1,004,004 |
|
1,110,318 |
|
|
Operating expenses |
2,665,203 |
|
2,057,655 |
|
2,367,985 |
|
2,288,186 |
|
2,266,897 |
|
1,724,513 |
|
1,879,479 |
|
1,672,131 |
|
|
EBITDAC** |
(358,311 |
) |
150,687 |
|
96,285 |
|
(153,972 |
) |
(566,569 |
) |
(171,247 |
) |
(480,837 |
) |
(191,430 |
) |
|
Net income (loss) |
(839,570 |
) |
(115,652 |
) |
(159,667 |
) |
(386,577 |
) |
(903,964 |
) |
(368,217 |
) |
(700,405 |
) |
(386,743 |
) |
|
Basic and diluted income (loss) per share*** |
(0.01 |
) |
(0.00 |
) |
(0.00 |
) |
(0.01 |
) |
(0.01 |
) |
(0.01 |
) |
(0.01 |
) |
(0.01 |
) |
* Adjusted by gains and
(losses) on sale of equipment.** EBITDAC is a
non-GAAP, non IFRS measure defined as Earnings before Interest,
Tax, Depreciation, Amortization and Stock based compensation. This
amount includes Gains (losses) on sale of property and equipment
and Other income (expense).*** Outstanding options
and warrants have not been included in the calculation of the
diluted loss per share as they would have the effect of being
anti-dilutive.
Conference Call Details
Date and Time: Monday, May 1, 2023, at 12:00 pm
ET/9:00 am PT
Call-in Information: Interested parties can
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, which is available via the
following link: https://app.webinar.net/bnqyeKXxQ2N or in the
Investor Relations section of the Company's website at
https://www.aurora-spine.com/investors-v02.
Replay: A teleconference replay of the call
will be available until May 8, 2023, at (877) 344-7529 or (412)
317-0088, replay access code 7462834. Additionally, a replay of the
webcast will be available in the Investor Relations section of the
Company's website at https://www.aurora-spine.com/investors-v02 or
at https://app.webinar.net/bnqyeKXxQ2N for 90 days.
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 Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward-Looking Statements
This 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.
Contact:
Aurora Spine Corporation
Trent Northcutt
President and Chief Executive Officer
(760) 424-2004
Chad Clouse
Chief Financial Officer
(760) 424-2004
www.aurora-spine.com
Adam Lowensteiner
LYTHAM PARTNERS, LLC
Phoenix | New York
Telephone: 646-829-9700
asapf@lythampartners.com
Aurora Spine (TSXV:ASG)
Historical Stock Chart
From Oct 2024 to Nov 2024
Aurora Spine (TSXV:ASG)
Historical Stock Chart
From Nov 2023 to Nov 2024
