-Company reports record revenue of $17.6 million for FY 2024, an increase of 21% –
-Company to host conference call Today, Tuesday, April 29th at 11am ET/8am PT –
NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES
CARLSBAD, Calif., April 29, 2025 (GLOBE NEWSWIRE) -- Aurora Spine Corporation (“Aurora Spine” or the “Company”) (TSXV: ASG) (OTCQB: ASAPF), a leader in spine and interventional spine technology that improves spinal surgery outcomes, today announced its financial results for fourth quarter and fiscal year ended December 31, 2024.
All figures are in U.S. dollars.
Financial and Business Highlights
Record quarterly and annual revenue – The company recorded its largest ever fourth quarter revenue of $4,702,317 in Q4 2024 compared to Q4 2023 sales of $4,044,234 an improvement of 16.3% or $658,083. The company also recorded record fiscal year 2024 revenue of $17,562,782 compared to fiscal year 2023 sales of $14,520,436 an improvement of 21% or $3,042,346.
Reported positive EBITDAC for FY 2024 – Company reported first annual positive EBITDAC in 2024, which was $282,450 compared to negative $(311,000) in 2023, an improvement of $593,450.
Increased margin – Margins continued to increase year over year to 60.5% in 2024 from 56.5% in 2023 due to selling more proprietary products, lower inventory costs and a decrease in commissions to distributors as the company built out its internal sales team.
Surge in SiLO-TFX sales – Sales of the SiLO-TFX™ SI joint implant demonstrated significant revenue growth of 135% in 2024, due to investments in surgeon education, expansion of instrument sets and key salespeople.
Expansion of internal sales force – The Company continued to hire new salespeople in 2024 expanding the sales force to reach more locations in the United States. This contributed to higher sales in 2024, especially during the second half of the year. The Company expects to evaluate its recent hires and continue to add select new sales staff in 2025.
Advanced Training Initiatives – The Company continued to conduct more surgical training sessions and cadaver labs that introduced leading orthopedic, neurosurgical, and pain management physicians to the ZIP™ and SiLO™ implants.
Management Commentary
"Fiscal 2024 was a really good year for Aurora Spine, with many achievements including a 21% increase in revenues, very strong margin improvement and our first full year of positive EBITDAC," said Trent Northcutt, President & CEO of Aurora Spine. "The company’s solid performance continues to be fueled by our proprietary products, primarily the SiLO-TFX system, which experienced an increase of 135% in revenues during the year. We also saw contributions from our ZIP product line, including the ZIP-51, which offers patients and doctors a specialized product to conduct fusion in the lowest part of the spine without the need for any screws. Also contributing to the record results were sales from our DEXA Technologies, primarily DEXA-C. I’m very pleased with our amazing internal sales team, which is now at 14 people, and their diligent efforts are the drive behind our growth and getting our proprietary products into the hands of more doctors and their patients."
"Looking ahead, we are excited about 2025 and are off to a great start with the recent FDA clearance of our newest product platform AERO™, a facet fusion system, which is Aurora’s fourth new product platform in the past four years. We have high expectations for this new proprietary product series and are anticipating initial surgeries in the second half of 2025. We expect that this product will generate much of the growth in sales we have planned for in 2025. We believe we now have a very well-rounded array of products to offer the marketplace and have vastly improved the company’s intellectual property so we can now focus more on commercialization and sales of our products and less on research and development. Having worked hard on developing the current product portfolio in recent years, now gives us a lot more shots on goal when approaching doctors and leveraging our training sessions going forward. We have a great team in place and plan on adding more salespeople as appropriate, which we believe is the proper strategy to grow the company and maximize shareholder value."
Chad Clouse, Chief Financial Officer of Aurora Spine, commented, “The company’s financial performance in fiscal 2024 was improved and moving in the right direction. We have made significant progress on lowering our accounts receivable, which has enabled the company to fund additional product trainings with doctors and build out our internal sales team. We are very proud of our achievements in 2024 putting the company into a position for continued growth during 2025 and beyond.”
Financial Results
Revenue Growth: Total revenues for the fourth quarter of 2024 were $4.70 million, an increase of 16.3% when compared to $4.04 million in the same quarter one year ago. Total revenues for fiscal 2024 were $17.47 million compared to $14.52 million for fiscal 2023, an increase of $3,042,346 or approximately 21%. The improvements in revenues over 2023 were due to more procedures conducted in ambulatory surgical and pain centers that incorporated Aurora products like the ZIP and SiLO TFX. The Company targeted the pain market with increased marketing, training, new product releases, and an increase in the sales staff. In 2025 we are returning some resources to the ortho and neuro side of our business.
Gross Margin Expansion: Gross margin on total revenues were 57.8% for the fourth quarter of 2024, compared to 56.7% in Q4 of 2023. Gross margin on total revenues for fiscal year 2024 were 60.5%, compared to 56.5% for fiscal 2023. 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 certain ambulatory surgery centers. Growing sales with ortho and neuro surgeons, with their use of higher cost third party distributors will add gross profit dollar amounts but dampen growth in margin percentages in 2025. Certain of our surgical screw products originate outside of the U.S. and margin may be impacted by the introduction of tariffs.
Operating Expenses: Total operating expenses were $3.22 million for the fourth quarter of 2024, compared to $2.58 million in the fourth quarter of 2023. Total operating expenses for fiscal 2024 were $11.438 million, which included $1.110 million of non-cash expenses, compared to $9.892 million, which included $1.328 million of non-cash expenses for fiscal 2023. Operating expenses increased during the fourth quarter primarily due to costs for training of new physicians, attending several society meetings and training of internal staff. Operating expenses for fiscal year 2024 increased primarily due to the addition of more salespeople for direct sales and increased commissions due to increased sales.
.EBITDAC: EBITDAC (a non-GAAP figure non IFRS measure defined as Earnings before Interest, Tax, Depreciation, Amortization and Share-based compensation) was $(0.32) million for the fourth quarter of 2024, compared to $0.11 million in the fourth quarter of 2023. EBITDAC was $0.28 million for fiscal 2024, compared to $(0.31) million in fiscal 2023. EBITDAC levels in Q4 were negatively affected by fair value accounting under IFRS of $(0.154) million for the Note Receivable from SiLIF to purchase shares of the Company. We expect the Note to be fully repaid on its due date or have all the shares returned for cancellation. EBITDAC levels in Q4 were also negatively affected by additional education, training and marketing.
Overall EBITDAC improvements during fiscal 2024 were due to higher revenue levels, improved gross margins and managed expense controls.
Net loss: Net loss was $(0.653) million for the fourth quarter of 2024, compared to the fourth quarter of 2023 with a loss of $(0.285) million. Basic and diluted net (loss) income per share was $(0.01) per share in the fourth quarter of 2024 and $(0.00) per share for the fourth quarter of 2023. Net loss was $(1.003) million for fiscal 2024, compared to a loss of $(1.680) million in fiscal 2023. Basic and diluted net (loss) income per share was $(0.01) per share for fiscal 2024 and $(0.02) per share in fiscal 2023.
Full financial statements can be found on SEDAR at (www.sedarplus.ca).
SELECTED STATEMENT OF FINANCIAL POSITION INFORMATION
The following table summarizes selected key financial data.
As at
December 31, 2024
December 31, 2023
December 31, 2022
$
$
$
Cash
825,621
766,829
423,401
Receivables
3,784,858
3,968,439
3,666,310
Prepaid and other current assets
276,084
204,173
186,800
Inventory
3,613,557
3,562,349
3,054,173
Current assets
8,500,120
8,501,790
7,330,684
Notes receivable
323,663
454,628
-
Intangible assets
801,625
753,180
881,354
Property and equipment
2,047,989
2,275,478
1,910,940
Total assets
11,673,387
11,985,076
10,122,978
Current liabilities
3,884,234
3,273,058
3,029,599
Non-current liabilities
3,391,892
3,414,695
2,773,919
Share capital
27,657,591
27,657,591
25,218,093
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 End
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
$
$
$
$
$
$
$
$
Revenue
4,702,317
4,767,121
4,079,543
4,013,801
4,044,234
3,949,530
3,568,583
2,958,088
Cost of goods sold
(1,982,273)
(1,884,637)
(1,532,173)
(1,529,538)
(1,749,216)
(1,592,530)
(1,537,410)
(1,429,987)
Gross profit
2,720,044
2,882,484
2,547,370
2,484,263
2,295,018
2,357,000
2,031,173
1,528,101
Operating expenses
3,219,197
2,811,364
2,701,478
2,751,188
2,580,613
2,606,618
2,513,587
2,191,039
Loss on FV remeasurement
(153,543)
-
-
-
-
-
-
-
EBITDAC*
(320,361)
380,117
105,522
117,171
109,734
120,796
(163,660)
(377,871)
Net loss***
(652,696)
71,120
(154,108)
(266,925)
(285,595)
(249,618)
(482,414)
(662,938)
Basic and diluted loss per share**
(0.01)
0.00
(0.00)
(0.00)
(0.00)
(0.00)
(0.01)
(0.01)
* 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.
***Net loss includes the $153,543 in FV remeasurement on the note receivable.
Fourth Quarter and Fiscal Year 2024 Conference Call Details
Date and Time: Tuesday, April 29, 2025, at 11:00 a.m. ET / 8:00 a.m. 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/ZVY76PMx3gp.
Replay: A teleconference replay of the call will be available until May 6, 2025, at (877) 344-7529 or (412) 317-0088, replay access code 5737353. Additionally, a replay of the webcast will be available at https://app.webinar.net/ZVY76PMx3gp 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.
Company Contacts:
Aurora Spine Corporation
Trent Northcutt President and Chief Executive Officer (760) 424-2004
