Aurora Spine Corporation Achieves Key Milestone with Transition to Profitability in Q3 2024

In the third quarter of the fiscal year 2024, Aurora Spine Corporation (Ticker: ASPN) marked a pivotal moment, reporting a net income of $71,000, signaling a transition to profitability. This achievement aligns with a strong performance across product lines, particularly the SiLO-TFX implant, and underscores the company’s strategic emphasis on product innovation and targeted market expansion. Aurora Spine’s 21% year-over-year sales growth pushed quarterly revenues to $4.8 million, marking the fourth consecutive quarter of consistent sales over $4 million.

Key Financial Highlights

• Profitability Achieved: Aurora Spine’s net income of $71,000 reflects strategic cost control and successful revenue growth, setting a solid foundation for future profitability.
• Sales Growth: Total sales reached $4.8 million, a 21% increase from Q3 of the previous year, highlighting robust demand.
• SiLO-TFX Implant Contribution: SiLO-TFX, a cornerstone product in Aurora’s portfolio (328 units sold during the quarter), contributed 48% of total sales, driving Aurora’s market presence in pain management and orthopedic solutions.
• Gross Margin Improvement: Gross margin showed slight growth, rising to 60% from 59.7% in Q3 2023.
• Enhanced Cash Position: The company ended the quarter with $880,000 in cash, a considerable improvement from $370,000 at the beginning of the year.

Operational Efficiency Gains

Operational efficiency has been a critical driver of Aurora Spine’s Q3 2024 success:

• Reduction in Operating Expenses: Operating expenses as a percentage of sales dropped from 66% in the previous year to 59% this quarter, reflecting strategic resource allocation and cost management. While operating expenses increased to $2.81 million, this rise remained proportional to revenue growth.
• Improvement in Operating Cash Flow: Aurora achieved positive operating cash flow, enhancing its ability to support ongoing and future investments.

Strategic Growth Outlook

Aurora Spine remains committed to sustaining its upward trajectory, targeting revenue growth from $4.8 million to $5 million per quarter. This goal is supported by three main initiatives:

1. Expanded SiLO-TFX Deployment: Driven by high demand, Aurora plans to deploy 60 SiLO-TFX kits, reinforcing its foothold in the pain management sector.
2. Sales Force Expansion: With a targeted approach to underserved markets, particularly in regions with growing demand, the company is bolstering its sales force to maximize outreach and responsiveness.
3. FDA Approval for Facet System: Anticipated FDA approval for Aurora’s facet system, targeting a $3.8 billion market, could substantially expand the company’s product offerings and market potential.

About Aurora Spine

Aurora Spine is focused on bringing new solutions to the spinal implant and pain markets through a series of innovative, minimally invasive, regenerative spinal implant technologies. Aurora Spine is an emerging growth company focused on bringing new solutions to the spinal implant and pain care markets through a series of screwless, innovative, minimally invasive, regenerative spinal implant technologies. Additional information can be accessed at www.aurora-spine.com or www.aurorapaincare.com.