Aurora Spine Corporation
TSX VENTURE : ASG

Aurora Spine Corporation

May 29, 2017 09:01 ET

Aurora Spine Corporation Files Condensed Consolidated Financial Statements for the Three Months Ended March 31, 2017

CARLSBAD, CALIFORNIA--(Marketwired - May 29, 2017) -

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

Aurora Spine Corporation ("Aurora Spine" or the "Company") (TSX VENTURE:ASG) announces financial results for the three months ended March 31, 2017.

To our Shareholders:

Q1 2017 saw sales consistent with Q1 2016. During the three months ended March 31, 2017 we generated revenues in the amount of $1,526,377 compared to $1,549,125 during the same period the previous year, a decrease of 1%. During Q1 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 Q1 2017

  • On January 13, 2017 the Company announced the allowance of its United States Patent Application 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™ and Dyna-ZIP™, this patent application covers the company's first polyaxial implant design. The patent was issued on April 12, 2017.
  • During the three months ended March 31, 2017 cost of sales was $732,704 and gross profit was $793,673 (52% of revenues). During the three months ended March 31, 2016 cost of sales was $744,094 and gross profit was $805,031 (52% of revenues).

SELECTED BALANCE SHEET INFORMATION

The following table summarizes selected key financial data.

As at March 31,
2017
$
December 31,
2016
$
December 31,
2015
$
Cash 143,216 192,842 579,631
Trade receivables 1,294,302 1,228,553 996,165
Prepaid expenses and deposits 177,361 318,386 205,343
Inventory 2,938,811 2,996,940 3,226,748
Current assets 4,553,690 4,736,721 5,007,887
Intangible assets 193,605 210,966 210,966
Property and equipment 1,925,895 2,095,565 2,766,207
Total assets 6,673,190 7,043,252 7,985,060
Current liabilities 2,315,322 2,400,196 3,134,105
Long-term liabilities 1,422,963 1,172,963 157,963
Common share equity 19,358,978 19,358,978 18,972,153

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 Q1 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 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;
  • Expanding our sales teams in the US by region; and
  • Lowering our cost of goods across the board.

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. Northcutt
President 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.

Contact Information

  • Aurora Spine Corporation
    Trent Northcutt
    President and Chief Executive Officer
    (760) 424-2004

    Sarina Mason
    Chief Financial Officer
    (760) 424-2004