Earnings release
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Aurora Spine Corporation Announces Second Quarter FY26 Financial Results - Company to host conference call Today, August 27th at 11am ET/8am PT - NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES Carlsbad, California--(Newsfile Corp. - August 27, 2026) - Aurora Spine Corporation (TSXV: ASG) (OTCQB: ASAPF) ("Aurora Spine" or the "Company"), a leader in the development of groundbreaking medical devices for spinal surgery, today announced its financial results for the second quarter of fiscal year 2026 ended June 30, 2026. All figures are in U.S. dollars. Business Highlights New Commercial Alliance - Announced Strategic Commercial Alliance with CornerLoc to expand minimally invasive spine and SI joint solutions nationwide. Updated Commitment - Company signed a new royalty agreement covering the SiLO TFX implant, which includes settlement of arbitration. Additional Patent Issued - Further improvement of company's IP profile with the issuance of a fourth U.S. patent related to Aurora's proprietary DEXA Technology® platform. DEXA-C - Sales of DEXA-C cervical implants increased 66.0% in the current quarter as compared to the same period in the previous year. The Company is continuing to expand the available sizes of the cervical implants. This growth is expected to continue during the year. Apollo Cervical Plates - With the reintroduction of the Apollo plate the company has seen increased use of the Apollo plate in conjunction with the DEXA-C cervical implants. Expanded use of DEXA-C will drive the growth in sales of the Apollo plates. Financial Results Revenues: Total revenues for the second quarter of 2026 were $3.66 million, a decrease of 18.7% when compared to $4.50 million in the same quarter one year ago. Revenues for the second quarter were lower due to decreased activity in the pain market, due to lower sales of SI joint products. Sales declines were offset by increased sales of cervical implant sales and biologics. The company re- released the Apollo plate during the quarter, which will be used with DEXA-C implants going forward. Gross Profit Margin: Gross profit margin on total revenues was 60.1% for the second quarter of 2026, compared to 62.2% in Q2 of 2025. Gross margin was lower as the company recorded more sales through distributors and greater spine sales, which carry lower margins as compared to pain products. Operating Expenses: Total operating expenses were $3.03 million for the second quarter of 2026, compared to $2.97 million in the second quarter of 2025. Operating expenses were slightly higher due to increases in consulting fees and professional fees, which were offset by decreases in research and development, marketing fees, and insurance premiums. EBITDAC: EBITDAC (a non-GAAP figure non IFRS measure defined as Earnings before Interest, Tax, Depreciation, Amortization and Stock based compensation) was ($501,809) for the second quarter of 2026, compared to $141,745 in the second quarter of 2025. The reduction in EBITDAC levels for the
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second quarter were due to lower sales and gross profit margins and slightly higher expenses. Net income (loss): Net loss was $(834,763) for the second quarter of 2026, compared to the second quarter of 2025 with a net loss of $(199,000). Basic and diluted net income (loss) per share was $(0.01) per share in the second quarter of 2026 and $(0.00) per share for the second quarter of 2025. Full financial statements can be found on SEDAR at ( www.sedarplus.ca ). Management Commentary "The second-quarter results were disappointing, reflecting the transition and retooling of our internal sales team, and broader awareness of our now-settled dispute with the underlying patent holder for SiLO TFX and increased competition," said Trent Northcutt, CEO of Aurora Spine. "As we indicated following the first quarter, we expected the second quarter to be softer as we worked through this transition however the resultant drop in sales was larger than anticipated. This was reflected in lower sales through our pain market channel, where most of our internal sales team is focused. At the same time, a greater portion of our sales came through our distributor network, which carries lower profit margins. "Despite the challenges associated with reshaping our internal sales team, we made meaningful progress on the spine side of the business. We saw strong demand for our DEXA-branded products, particularly DEXA-C. In addition, our Apollo plates are back in production and are now shipping alongside our DEXA products. This allows us to provide customers with a more complete product offering while improving our overall profit margin profile. We believe this momentum can continue as surgeons increasingly recognize the value of having implants specifically designed for patients with bone deficiencies." "Following the end of the second quarter, Aurora entered into a strategic commercial alliance with CornerLoc, a company with innovative SI joint fusion technologies that our sales team can immediately introduce to existing and prospective accounts. At the same time, Aurora's innovative technologies will be made available to the CornerLoc sales team. This reciprocal relationship allows both companies to offer a broader suite of SI joint products while giving surgeons greater flexibility to select the technology that best fits their preferred surgical approach. "Our products are supported by strong clinical data and thousands of successful installations, demonstrating their safety and effectiveness. I am extremely excited about this partnership and believe it can create significant long-term value for both companies while providing meaningful benefits to surgeons and their patients." "While we remain in the midst of a sales team transition, we are increasingly excited about Aurora Spine's future. We have a strong and differentiated portfolio of technologies across both the pain and spine markets. This diversified product offering is an important part of the business we are building at Aurora. "We have made significant updates to our sales organization and believe we now have the right team and structure in place to support future growth. We are confident that we are on the right path and look forward to updating our investors on these initiatives, our new products and the opportunities ahead," concluded Mr. Northcutt. Chad Clouse, Chief Financial Officer of Aurora Spine, commented, "While the second quarter was impacted by our efforts to strengthen and reposition our internal sales team, we maintained gross profit margins above 60%. We remain highly disciplined in managing expenses and cash outlays, while continuing to improve our collection of accounts receivable. We are focused on maintaining financial discipline while strategically investing in the people, products and initiatives that we believe will create long-term value for Aurora Spine and its shareholders."
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SELECTED STATEMENT OF FINANCIAL POSITION INFORMATION The following table summarizes selected key financial data. As at June 30, 2026 March 31, 2026 December 31, 2025 $ $ $ Cash 362,634 778,006 896,713 Accounts receivable, net 2,651,013 2,997,618 3,310,537 Prepaid and other current assets 279,543 299,183 350,497 Inventory 3,316,052 3,213,299 3,243,257 Current assets 6,609,242 7,288,106 7,801,004 Note receivable 245,421 239,795 234,230 Intangible assets 578,044 613,012 653,618 Property and equipment 1,499,784 1,570,649 1,718,141 Total assets 8,932,491 9,711,562 10,406,993 Current liabilities 2,941,375 2,881,992 3,348,297 Non-current liabilities 3,165,529 3,206,794 3,245,982 Share capital 27,754,550 27,754,550 27,754,550 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 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 $ $ $ $ $ $ $ $ Revenue 3,658,247 4,435,984 5,022,865 4,430,755 4,497,381 4,417,027 4,702,317 4,767,121 Cost of goods sold (1,459,703 ) (1,660,395 ) (1,884,709 ) (1,731,357 ) (1,698,257 ) (1,854,244 ) (1,982,273 ) (1,884,637 ) Gross profit 2,198,544 2,775,589 3,138,156 2,699,398 2,799,124 2,562,783 2,720,044 2,882,484 Operating expenses 3,033,307 2,978,443 3,153,678 2,814,754 2,971,754 2,879,114 3,372,741 2,811,364 EBITDAC* (501,809 ) 106,765 301,112 165,600 141,745 (20,924 ) (320,362 ) 380,117 Net income (loss) (834,763 ) (202,854 ) (40,702 ) (141,980 ) (198,760 ) (349,678 ) (652,697 ) 71,120 Basic and diluted income (loss) per share** (0.01 ) (0.00 ) 0.00 (0.00 ) (0.00 ) (0.00 ) (0.01 ) 0.00 * 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. Second Quarter of Fiscal Year 2026 Conference Call Details Date and Time: Thursday, August 27, 2026, 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/1O0ajygL9BV . Replay: A teleconference replay of the call will be available until September 3, 2026, at (855) 669-9658 or (412) 317-0088, replay access code 6595785. Additionally, a replay of the webcast will be available at https://app.webinar.net/1O0ajygL9BV for 90 days. About Aurora Spine Aurora Spine Corporation (TSXV: ASG) (OTCQB: ASAPF) is an innovative designer and manufacturer of minimally invasive spinal implants and interventional pain management technologies. Headquartered
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in Carlsbad, California, the company's mission is to improve spinal surgery outcomes through simplified, integrated, and cost-effective solutions that advance patient care worldwide. Additional information can be accessed at www.aurora-spine.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 Chad Clouse Chief Financial Officer (760) 424-2004 www.aurora-spine.com Investor Contact: Adam Lowensteiner Lytham Partners (646) 829-9702 Email: asapf@lythampartners.com To view the source version of this press release, please visit https://www.newsfilecorp.com/release/311662