Aurora Spine (ASG) investor relations material

Executive summary

• Second quarter results were impacted by the transition and retooling of the internal sales team, increased competition, and a patent dispute in the SI joint market.

• Strong sales growth was seen in the spine segment, particularly with DEXA-C and APOLLO products, with DEXA-C sales rising 66% year-over-year.

• A strategic commercialization alliance with CornerLoc was established, expanding SI joint product offerings and opening new market opportunities.

• The company remains optimistic about future growth, supported by a diversified product portfolio and ongoing sales team expansion.

• Issued a fourth U.S. patent related to the proprietary DEXA Technology platform and reintroduced Apollo cervical plates.

Financial highlights

• Q2 2026 revenue was $3.66 million, down 18.7% year-over-year, mainly due to lower SI joint and pain market sales.

• Gross profit margin was 60.1% in Q2 2026, compared to 62.2% in Q2 2025.

• Operating expenses were $3.03 million, nearly flat year-over-year.

• EBITDAC was negative $501,809, down from $142,000 in the prior year.

• Net loss was $835,000 for Q2 2026, compared to a net loss of $199,000 in Q2 2025.

Outlook and guidance

• Management expects revenue improvement in the second half of the year as the retooled sales team gains traction.

• Strategic alliance with CornerLoc anticipated to broaden product offerings and drive long-term value.

• The capital structure is considered sufficient to meet budget needs for the remainder of the year.

• Focus remains on financial discipline, expense management, and improving accounts receivable collections.