Liberty All-Star Growth Fund, Inc. Price & Performance (ASG)

Words such as expect, intend, believe, may, will, should, could, anticipate and similar expressions are words that are used to identify forward looking statements. Aviras does not mean a statement is not forward looking. These statements are not guarantees of future performance and are subject to and uncertainties and other important factors that could cause actual performance or achievements to materially differ from those projected. Growers Spine does not intend to update or revise any forward looking statements whether as a result of new information, future events or otherwise. On this call, management referred to EBITDAX, adjusted EBITDAX, adjusted net income or adjusted EPS. Which are not measures of financial performance under [indiscernible] Management believes that these non GAAP figures in addition to other GAAP measures provide meaningful supplemental information regarding the company's operational performance. Investors should recognize that these non GAAP figures might not be comparable to similarly titled measures of other companies. Investors should be considered in addition and not as a substitute for or superior to any measure of performance prepared in accordance with GAAP. Reconciliation of non GAAP measures the most directly comparable GAAP measure in accordance Section C Regulation G can be found in the company's earnings release.

We're joined today by Trent Norcutt, our CEO and myself Chikoff, our Chief Financial Officer will present an overview of our financial statements following by a Q and A session. I will now turn the call over to Mr. Trent Northercutt, President and Chief Executive Officer of Aurora Spine. Trent, please proceed. Thank you, Chad, and good morning, everyone. Detailed financials for the quarter are contained in the Q3 filing and the press release filed on Thursday. I'm pleased to share our results for the Q3 of 2024 which marked a pivotal profitable EBITDA net income of $71,000 This transition to profitability was made possible by strong growth in sales and continued focus on cost control. Our strategic focus on expanding the sales force and targeting underserved markets has yielded strong results and evidenced by our significant sales growth and improved profitability. On Thursday, we issued a press release detailing our financial results. Hopefully, you've had a chance to review the news release but if not, a copy can be found on our website at www.auraraspine [indiscernible] Under the Investors section, other financial websites. Like to discuss some of the financial and operational highlights for the quarter. We reported a $4,800,000 market marking the 4th quarter 4th consecutive quarter of over 4,000,000 sales which represents a 21% increase compared to Q3 2023 and a 23% year over year [indiscernible] $687 increase from Q2 to 2024.

The quarter benefited from strong demand in the pain management sector, particularly in the silo TFX and the ZYP51 implant. Driving good by targeted sales and lab training courses. Our net income for the quarter [indiscernible] 0.071000000 and a significant narrowing from the net loss of 0.248 2.49 $1,000,000 in Q3. Transition to earnings per share 0.0 in Q3 2024. Gross margin improvement to 60 percent in Q3 twenty twenty four, up 59.7 percent in the same period last year. Margin improvement is a direct result of the increased sales of proprietary products with higher profitability, particularly in markets with favorable pricing dynamic surgery centers and ambulatory surgery centers. Operating expenses in Q3 2024 $2,810,000 up from 2.61 $1,000,000 in Q2 2023. Expenses represented 59% of sales in Q3 3 24 compared to 66% of sales in Q3 2023. The rise in expenses was primarily due to increased commissions and travel cost associated with expanding the sales force partially offset by reductions in R and D and research and development and professional fees. We generated 0 point $519,000,000 in operating cash flow, reflecting our strong operational performance and efficient working capital and management of capital Notably, the silo TFX sales grew by 35% from Q2 2024 to Q3 2024, reflecting the success of the AURORA's expansion into the pain management market. 51 sales have doubled in 2024 compared to 2023.

The robust growth is attributed to intensified marketing efforts and increased adoption among surgeons. Aurora continues to scale the sales team directly contributing to the sales surge. Additional the addition of new sales professionals expected to further drive growth as they're onboard more surgeons into the Aurora's ecosystem. The company maintained Its commitment to excellence by conducting advanced training sessions [indiscernible] for top orthopedic, neurosurgical and pain management positions showcasing the clinical advantages of the ZYP and the silo implants. I'll now handle the call over to Chad for further discussion on the financials. Thank you, Trent.

I'll now take you through some additional financial details Sales for the 9th period month ending September, 2024 was $12,800,000 up from $10,400,000 in the current period of 2023 with a net loss of 0.35000000 with a significant increase from the loss of 1 point $39,000,000 in the comparable period of 2023 decreased net loss as a combination of presales and cost controls while we continue to expand the sales force.

Expenses represented 64.3 percent of sales in the 9 period 9 month period of 2024 compared to 69.8 percent of sales in period of 2023. EBITDA, a non GAAP measure, and non IFRS measure, was $380,000 compared to $120,000 in Q3 2023. This marks the 5th consecutive quarter of positive EBITDA. We ended the quarter with $88,000,000 in cash and cash equivalents, up from $37,000,000 at the end of Q1 This increase is due to strong operational cash flows with prudent capital management and net income of $0.071000000 was increased by a reduction of accounts receivable and increased receivable to offset by an increase in prepaid and inventory. The company has increased collection efforts, which we can be seen by reduction of trade accounts receivable by approximately $400,000 Inventories remain steady Inventory levels remain steady and the company has not had supply delays in replenishing inventory. The company is currently manufacturing the zip and PFX implants in our facilities along with the TFX instrument. The company invested $69,000 in instruments and trades in the current quarter These instruments will support increased sales of Aurora implant increase in accounts payable is nominal and the product of the increased business. We issued no shares during the quarter and recorded $28,000 in expense for stock based compensation The company issued 87,500 stock options and 2 12,500 options were forfeited in Q3 [indiscernible] 8,000,000 approximately 9,000,000 warrants expired in September 2024 These warrants were issued as part of a private placement in September 2021 with a 3 year window to exercise its expired in September of 2024.

Will now turn the discussion back to Trent.

To summarize, we are very pleased with our performance this strong results reflect the hard work of our team our commitment to executing our strategy. We are optimistic about our growth prospects and we are confident that in the in our ability to deliver the value back to our shareholders. Operator, we'll now open up the floor to questions.

We'll now begin the question and answer session. And our first question comes from Tom Fettuccine with MicroCap Connection. Please go ahead.

Hey, good morning guys. Congratulations on a fantastic quarter.

We saw Aurora sales of $4,767,000 and earnings of $71,000 which is a big sigh of relief for a lot of investors seeing profitability. Now the silo TFX sales were 48% of all sales or 2 $300,000 And if I reverse engineer it based on $7,000 per implant, that was 328 implant sales completed the last quarter, which is over 100 per month, which I think I believe was a target that you were seeking before you ordered more kits. Can you speak about the robust sales of silo TFX and maybe speak about the addition of an additional new 60 kits that you've got And then to add to that, how long will it take for those 60 kits to be deployed? Over the next year?

Well, thank you, Tom, for the call. I think you're calling in for the question. Yes, the TFX sales are expanding and we were keen on that. We knew that we would be building out new inventory We're constantly monitoring, you mentioned, and seeing where that's going to land I put out a video online, a social media post showing that we've received more instruments. We're also doing some some modifications to the kit Aurora positive things that we just found that are better for us to tweak in the system. To make it just a little bit slicker. And so we're happy about those those changes. It's not an expensive change. It's just part of the process of call it a 2.0 upgrade to the system. It's going really well and yes, we are right on the mark with the delivery out. We are have throughout the year We were getting increasing and getting closer and getting up and over to the 100 units a month. And we think with these additional kits and with the new feet that we want to add on the street, going into the beginning of the year, We have homes we think for those additional kits that are being built out as we're Will those kits remain stationary or are you still planning to move them around?

Well, for now, we are still moving some kits around. That's just kind of how it goes. It's not like not like a cervical case or say like a lumbar case, typically you can leave those kits there and you don't have to ship them out as often. But some doctors only have 1 or 2 a month, some have Aurora. And so those kids need to get up and get up shipped out in different parts of the country And there's different regions, right? There's different regions who needs the inventory and they might have more than one customer in that week, it might be 4 or 5 customers who will have to ship 4 or 5 kits to that location.

Okay. And you've how many kits did you have in use in Q3 to obtain the 2.3 I think we're only at 35. Chad, you can me if I'm wrong on the number, but I think it's about 35 kits, only 35 kits. [indiscernible] That's so well, again, if you reverse engineer $7,000 per implant, works out that 328 implant sales Aurora or turns as you call it Aurora 3.13 turns per month per kit. So again, very, very good. Congratulations there.

Thanks.

Now and I've got a few questions from others here as well, by the way. Can you speak about the deployment, I guess, of the kits and the relationship to some of the new sales what the impact is of these sales directors [indiscernible] Well, I think what you're saying is that who's been the most impactful like regional sales managers, is that what asking me? Yes, we've got there's it's always in the front of everyone's topic when they're out talking to different surgeons or different interventional doctors, we're asking questions like, is something that you normally do?

In your practice? Have you been interested in SI fixation or fusion There's obviously the reasons that were in there. One of the things that I'll say is that Texas has been a great location for us. We tend to do quite a few procedures down that way. Aurora, Northern California, we've seen kind of an uptick there. So are there areas in the Midwest that seem to be real responsive to have this procedure done in their location. [indiscernible] the different people in Arizona too, it's not there. So it seems like kind of like the warm weather places in particular areas that people just want to get back on their on their feet. We've seen that it's we're getting a lot of revision, meaning they get their one side done, the patient gets so much relief off their one side that we turn around and do the contralateral side and get both of their SIs fused because now they're completely paying free after that. And the pain goes away like immediately. And people come in with an ache, they can't even sit still in the surgery center. Or hospital and to get their side fixed and then they walk out that day and they're like it's already going away.

We're really pleased with that. And so yes, just different parts of the country, typically warm weather, There's many pockets of the country that like 2 thirds of the country we're still not covering.

Amazing. Amazing. Are you seeing a correlation with the uptick with zip sales in relation to the addition of these new sales reps as well? It's not just the TFX that is benefiting? Well, I think the SIP sales are is that it's been it's really what opened the door for us in the interventional market because as you know, we were the company to do a multicenter study with ortho, neuro and pain together in a collaboration in a multicenter fusion study had never been done before.

We did it and we have really strong clinical outcomes on that. We have high success rate with that.

That gives us kind of that crown jewel in our our crown to be able to talk about at trade shows and conventions. Like we can look everyone in the eye and say, look, we did this. We did this to prove it to ourselves, but we did this to prove it to the industry. And ultimately, we had a goal of of offering a screwless procedure to to patients across the country pedicle screws continue to drive lumbar fusion. That's dictated by surgeons that that's just what they're trained in, what they're most comfortable with. And we're trying to show them that there's another way. And we've actually started picking up because of the multi center study and some of these congresses were they get ortho and neuro get invited into these pain conferences We are now starting to see a rise in our usage in the zip with these doctors that say, oh, you know, now that I've seen it, I see you guys got the data, I'm interested in taking a look at that again. [indiscernible] And because it's now had been tested over and over again, it's not like a fly by night system that people try once and then don't use again.

It's got some good traction to it. Nice, nice. Let's move on to the DEXYCU. I understand you hired a new sales director previously. How has sales gone? Are you starting to see some traction? And Maybe you can give us an idea what we can expect come year end. Also, Sergio has asked me to ask you about the Osteo osteoporosis market. Is this a market you plan to go after given your unique advantage with the DEXYLion.

Yes. There's 2 things that you you I know we're still waiting for DEXYCU to get its big push up, but we've we recently moved we had another system, the HydraLumbar system, right, which is is meant for lumbar fusion and we added in there, there was an opportunity for us to work with another company that that wanted to work closely with Aurora and we started to involve their system into our system and we rebranded their technology called Osteo Onyx, we moved that into our portfolio. And it's going really, really well. And what that does, that [indiscernible] is is a product that adds an enhancement to the Aurora system by this roughen surface technology where patients that have lesser bone quality, The roughened surface allows Bone to attach to these implants with a more rigid fixation to the implant. I've studied out there that validate this and verify this. We thought that that was really interesting to us because it matched what we were trying to do with our comment as you know bone density matters right. That's one of our taglines. We really believe that because we know that not all bone density is equal, not all bone quality is equal.

There's just differences between between patients that are of different age groups And the other thing that we fell into as we started to expand on our DEXA technologies, we didn't recognize that in a patient's spine, they could have all healthy levels except for one level could be affected. Just one level. So let's say L4 and L5, And this patient's got going to have a 2 level lumbar fusion. On L45, on that particular level that could be an osteo peanut or osteoporosis level, where the level above it, L3 and the the level below it, the L5, is green, meaning it's in the normal bone category where it actually has a healthy T score. Was really interesting to us because that meant that what are you going to do with that one level?

Are you going to be able to treat that level with the same old one one product density fits all.

Or one implant that doesn't have any special bone characteristic, adhesion characteristics to it. Are just going to just hope that that level works And we said, well, this is a really keen idea for Aurora. We can really focus here. It gives us that door opening opportunity with that surgeon, say, you thought about this doctor? Did you know that? And they all know it. But there's never been a solution for them. And the fact that we can walk in there and get a solution you know, we've got a lot of pain focused people in our group, which has been very fruitful for us. We need to get back to where we came from, which is in our orthopedic and our spine history [indiscernible] and he's doing a terrific job. We're already starting to see an increase in spine sales. We got more spine surgeons taking a closer look. And I think we're all going to have a real breakout year just coming into 2025. I think it's going to really up a notch and it could start to outperform even our pain division in a short period of time.

Impressive. What is the potential of Bostionix, which do you see as a potential? I see as a market size. Yes, sorry. Well, so this is a it's a lumbar system, it's a lumbar screw. So it's the pedicle screw market. So the doctors say, why would I want to use just another screw?

We have a reason for them to say, look, this is why it's got this got this rough and surface technology. It's going to help give your patient a little advantage. It's going to help you as a clinician to help treat that patient. And then I didn't finish answering your question with DEXA then we have the DEXA C, which is which is being integrated into it's in a multicenter study. The DEXYCU study is going actually really well. We're going to Aurora put out more of that data that's been collected so far. That's going to help us exactly what we do with Zip. We're going to show look at the data supporting what we're saying and then we're in package sterilization with our our DEXA L, which is the lumbar standalone system, And we're close to getting the DEXA what we call DEXA SD or DEXA PLIF TLIF cages that are for posterior interbody devices that go in there and these implants go in between the vertebral body to be used with hydro, hydroosionics and even for doctors, surgeons that use Interbody to restore lumbar height and restore the balance of spine using an inner body cage.

Our cage will be the first one that will feature DEXAN technology. And right now it started obviously with our cervical technology. So these things are starting to snowball together. It's kicking together as we wanted it to. And as for potential for the year ahead, how big do you think Osteo Onyx could be for you? Because it's new. That's why I asked. Nobody's really heard of it until The press release Yes.

I think it's going to I think a short period of time, I think in the beginning of the year going into Q1, Q2, we're going to start to see ASEONICS add in over $500,000 a month in sales for us. [indiscernible] [indiscernible] Awesome. Now can we we'll switch gears here and talk about your accounts receivables, if you could. They declined year over year, which is great. Can you speak about some of the long term accounts receivables that you've had? I understand it's one of the larger debtors has been paying it down. But maybe you can talk about the average time span for your debt, how old it is? And how you're keeping on top of your accounts receivables.

I'll let Chad jump into this one. Go ahead, Chad.

Yes.

I'll take that one. So We tried to put a hard push on receivables because they're growing. And I actually end up hiring a individual to whose job is nothing but collecting money and, well, reason for other things. But his main job is collecting money and he's done a very good job of collecting not only things that are due, but things that are everything over 60 is way down from what it was and that's not from write offs, that's from collecting the large debtors that we're talking about. They had been paying us about $100 a month They paid themselves down below 90 days now. So we're we're thrilled about that, collecting all that money. Yes, I think we've just been hard pushing and I'll [indiscernible] it's paid off and we've collected a lot of variable receivables over the last 6 months and on top of things that so that they're not just slipping into the over 60 days now. Perfect. Can you speak about concentration Is there any large accounts or holders of your accounts receivables that make up a good percentage? Or is it really spread out now amongst many companies and it's just really an ongoing constant flow of regular normal business with accounts receivables being paid and of course new ones being added.

Yes, I think that's what's really happening is we've got we're increasing our sales, we're collecting better on those sales, it's just that constant flow. I think we've got one person who's probably in the 10% range of receivables, but they pay on time and have been churning business for almost the whole year at this point. So we're not concerned about that 10% But yes, I mean, it's just constant sell and collect, sell and collect. We're doing great with it. Fantastic. No, that's great. [indiscernible] I know we're going to switch back to the business again here. If you could speak about the new sales directors that you brought on over the course of the last year. How many were brought on and how many do you expect to have over the course of the next 12 months how many new hires We had a couple of people who didn't who didn't make goals. So we professionally parted ways with them and we have in the field, we have 6 regional sales directors that came down because we had some people that just like I said couldn't hit the number. We have 3 direct territory managers in the field.

So they're more directly focused in a specific territory where the regional sales directors cover a broader area. We have 2 VPs. There's a VP East, VP West. And then that's Hall Falls. Underneath Matt, we also added Ron Eccles And his sole purpose for AURORA is just to focus on its spinal equipment, its spinal hardware final studies and everything related to the development and furthering of our spine division. And then he'll start to add people underneath him into 2025. So right now we've we're just finishing up some Aurora budget for 2025. And we put a headcount in there for an additional 9 new sales directors in 2025.

Okay, perfect. Your training programs with these many new sales directors planned and the new ones that added this this year. Obviously, more doctors and specialists are being introduced to Aurora [indiscernible] I have to believe that the training the demand for training is only going to increase. You have enough staff in place to oversee an expanded training program?

Well, do we have the enough staff? No. We know that we need to we need to build out more infrastructure with headcount in the office and I'll digress for a second. I got to give my hat hats off to how the internal staff worked with the field staff, the field staff and the internal staff were just absolutely lights out [indiscernible] In Q3, they were they were tap dancing across the whole country getting sets brought into place, making sure we made that training lab on time, making sure we had the right trainer at that location, getting we had we sometimes call these many of these training positions away from their homes that weekend so they can go to be at a lab course to train some new people. And some people are even getting new retrained again because they kicked the tires but never got started. And now they want to kind of see it again because they're starting to see that industry is growing They see that their peers are using the devices and getting some great clinical results. We're showing good clinical outcomes So we have to build more infrastructure internal inside the office, some more more men and woman power, inside the building, that's for sure.

And that's going to be part of that build out of inventory and And we are working on that budgetary itemized list to start to have the right budget in place to make sure we have the right headcount in place. [indiscernible] Okay. A couple more questions. Can you speak about veteran affairs? Have you made any inroads this past quarter? And what do you expect as move forward here with the VA?

We have. We've actually done some surgeries now at the Navy facilities and different VA hospitals in the countries, mainly in California, These procedures have gone exceptionally well. We're really, really encouraged by this because it's once you get started, you just it can snowball into a positive direction. And we have actually gotten in there and had some really good outcomes. That's a great population too, right? It's population of people that are really focused on getting well and getting better. And then there's Shaquille, we just need to get better, right, because they're either part of either VA system or they're in the they're actually active duty and they have to get back to their post, right. So we we're really honored and thrilled and so far it's gone really, really great.

Wonderful. Now there's a lot of positives from this quarter. Like it's again, the best quarter in your company history. So having said that, without repeating the items that we know of like the TFX sales taken off, Is there anything that really stands out that you're really quite proud of that maybe has been mentioned, whether it be increased doctor count, the amount of turns like the per doctor Aurora is there something else that really stands out that's you would like investors to know?

Well, it's been the collaboration has been the key part where said the internal staff and the field staff really pulled together to make sure that we have a slogan inside the building, miss no surgery, We don't want to miss a surgery. This is somebody's mother, brother, sister, friend on the table ready to get get that procedure done on them. We want to make sure they're There was some really great resiliency coming out of the hurricane down Florida where we were able to get out and get in front of things and when obviously priorities down there were to make sure that people were back in their homes and safe and we were able actually get into surgeries in the surrounding area to help support those local areas.

So we did a good job there. And then we've been real active with the different congresses and conventions We in the big orthopedic markets, we're still finding our path there and the DEXIS really helped us there. We've certainly stood out in the interventional market because of the data that we've collected and how we've been true to the market where we're going there with a lot of thoughtfulness and we we don't turn our back on to those pain interventional doctors. When somebody might be an orthopedist and they just don't like the fact that now an eventual are now doing this procedure. We made this commitment. We're standing by it. And we think that this is going to be a win because all these groups can come together and really help patient care and really help their patient population and their community. We know that we're getting great clinical results. Then there is more than one way to fuse a patient in your SI. There's more than one way to fuse a patient in your cervical and in your lumbar we're trying to come up with these new devices, get these new devices into the marketplace where doctors see this as this is the option that I want to provide to my patient.

So as far as like extra secret ingredients in the sauce, I think just been grit determination and focus, right? The focus has been there on analyzing the number, making sure that ROI for us? Is it a good event for us to be at? If not, then we're off to the next meeting and off to the next account, if we just can't seem to make an impact in that area, And that's what the field representation does between Florida, Arizona, Texas, people just getting out there at and making sure that that when we walk in there, they see that those people are carrying the Aurora flag all the way across the finish line.

Wonderful. My last question now is, given you've had such a wonderful quarter, is this the new norm that we can expect going forward? You have taken a major step jump from the 4,000,000 dollars 4,200,000 range to close to $4,800,000 Is this something we can expect going forward seeing revenues in the $4,800,000 to dollars to $5,000,000 range for the next quarter, 2, 3 as we move forward. Well, we're always humbled about where we come from. So we know that we did real well in Q1. And we did had a little bump in Q2 Obviously, we had a nice a nice spike in Q3. And we are now watching what can happen in Q4. Q4 is one of those unique months where all holidays start to stack together. I feel really encouraged about how we've already started in Q4. So I'm really pleased with the way things have already kicked off in Q4. Now we got to charge hard for the next because we're almost done here with the October. We got to really charge hard through the rest of the quarter, but I'm super pleased with how we've gotten started in Q4. And they know that 4,700,000 $77,000,000 They know that that was a great milestone and they know that they want to beat that number.

And that's what we're striving towards because we've been talking about hitting that $5,000,000 quarter for the last year and a half, 2 years, and we want to get there sooner versus later. And we do think that going into 20 25, we know that in 2025, we'll be able to put $5,000,000 a quarter into the rearview mirrors, but let's get there first.

Perfect. Well, again, guys, congratulations and thank you for taking my call. Thank you, Jonathan. Our next question comes from Lindsey Leads with MicroCap Opportunities. Please go ahead. [indiscernible] Super pleased with the progress on revenue, accounts receivable and fantastic net income for the first time I wanted to ask about your facet system that I think has been maybe spoken about on Seeking Aurora Wolf YouTube interview and maybe somewhere else. Are we still expecting an FDA approval in 2020 4? And what kind of work would be done towards an eventual product launch for that product?

Well, thank you, Lindsay, for joining the call. Yes, we it's still with the FDA. So obviously, I don't have a crystal ball in front of me. It's just one of the things with the FDA, you never know. But Our biomechanics were truly off the chart. They were so impressive. We see this as a as a market opportunity of $3,800,000,000 market The facet market is the number one treated segments within the pain interventional market. That's the area and the patient that they treat the very, very most. So we're really focused on this. We see it as a huge market opportunity. That $3,800,000,000 market opportunity is larger than the SI joint market.

That's been evaluated by SI Bone at $2,500,000,000 market. So this is how pertinent it is to us and why we think this is a good strategy for our team to take a closer look at.

And if we can get as soon as we get the 510 approval, we'll rapidly move towards manufacturing all the set up for this implant to be manufactured from set design, implant design, cadaver labs that have already been hosted on, they've all gone really, really well. We're just waiting for that for that to [indiscernible] sorry, 5,000,000 approval and then we'll start to go into a manufacturing phase. The manufacturing phase based upon quotes that we've received from different sources of the had some reasonable timelines to it. So would be something that would come out in the beginning of Q1 Aurora sorry mid to end of Q1. We got the FDA approval, in November or October. Sorry, November or December.

Awesome. Thank you for that. This is maybe a newbie question, but what kind of physician would be doing a facet surgery Actually, it's a crossover product. It would be orthospine. Neurospine and pain interventional market would use a facet fusion system. And as I mentioned, [indiscernible] [indiscernible] section of the patient's body is the number one treated location in the interventional That's the one they treat the most. [indiscernible] vertebra, right? So you we would be focusing on the lumbar area, so L1 through S1. So you have just by that right there, that gives you 10 facets to work with, right, each level. So you each level has the 5 levels You'd be able to put an implant in there to get a facet fusion.

Okay. Is that a hard procedure for a pain physician to learn?

Not the way that we've made the product. I think the way that we've made the product is going to be so it's going to be so simple, which is our tagline. I'm not trying to sell acute here, but we simplify the complex. That's our tagline of the company. And I really think we've done that We have simplified a very complex procedure and made it something that you could do in an outpatient setting. Surgery center setting, patients would go to walk in and walk out. [indiscernible] [indiscernible] Incision size.

So how does that compare to the treatment that's on the market today?

It falls into the same category as lumbar fusion. So it sits in that marketplace. But this would be a minimally invasive alternative to to big giant screws, right? It would be one of those marketplaces where the patient has been worked up, they've done all the clinician has done all the right things by that patient where they've done physical therapy and they've done injections and they've worked the patient all the way to the point where the last step is lumbar fusion and this gives them that that facet fusions where they can actually they've even done let's say nurse stimulators and they've done some additional ablation in the facet. So they've really worked this patient all the way through to the point where now they just got to fuse the level because the level keeps every movement in that level keeps causing pain for that patient.

This would be a way for them to get right there into that same asset that they've already been trading. Between electrodes or or ablations or injections, they're going right into that same location they'll be able to put our implant in there and infuse that level and either by that patient 5 years, 10 years or more before the obvious, which would just be a big lumbar fusion, which can't come back from [indiscernible] Okay.

Are you the only minimally invasive solution for this surgery today or is there other players in this space already?

There's a few other players in the space It's not FASET Fusion is not new. Has been around for a long time, over 40 years, if you will. But the way that the older implants that were designed were more complicated and that's really with the sets were introduced to the market like I said, a long time ago, pedicle screws essentially were born out of facet, older facet systems. What we did is we took a look at it and we saw some international companies that were working on products overseas. Didn't need an FDA approval and we just took a closer dive on it and said, I think we have some technique advantages if we do it this way and we've learned a lot of that from our SI space. And we apply that to our to the the facet system. So we know that the fact that the doctors can use our silo system, silo TFX system, if you can use system, then you're going to be able to use the new Arrow Fissett system. The ARO is AERO.

Okay. When I look at your non silo TFX revenue base, it's kind of been stable the last Several quarters, do you see any products that might break out and kind of add some additional revenue in the coming quarters?

Well, I think that the TFX silo TFX is going to continue to grow I do think that more I think the Z51 is going to continue to grow And I think that now that we've added Ron Eccles into the Spine division, the Spine division is now you're going to see spine fusion with ortho and neurosurgeons especially the ones that we like to work with that we can help they can help be part of the collaboration with with the interventional space, people who are doing the training courses and being part of that bigger picture, getting everyone to play well in the sandbox would be well. We think that Spine is going to grow. That's one of our big targets right now for Q4 going into the beginning of the year. Is, we're doing well over $1,000,000 a month in paying and that's growing. Let's get our spine division up over $1,000,000 and if we do those things then then now we're like I said, we're putting the $5,000,000 quarters in [indiscernible] on our way to $30,000,000 a year and that's what we're focused on in 2025 is that is to be way up and over the $20,000,000 mark.

And then getting past $5,000,000 quarters with a a balance between the pain market over $1,000,000 a month and the spine market over $1,000,000 a month and then growing off those markets. [indiscernible] Okay. Is this kind of I see TSX revenue growth is up 92%.

Phenomenal number.

Is that kind of growth even a crazy number that it's going to have to slow down Well, I think there's plenty of room to grow in this market. The market is still expanding. Credit to Siphone, they evaluate the market at 2,500,000,000 They say that there's over 289,000 estimated procedures that can be performed in the SI joint. We see it a little bit differently and we see it be they focus mainly on the ortho and neuro market and we focus on ortho neuro and the pain market as a whole. In the pain interventional market, this is also in the SI bone, stats that they promote out when they talk about the size of the market. They say the amount of the procedures that can be performed just means over $289,000 They say the market size is $2,500,000,000 They also list on there that there's over 1,200,000 SI joint injections annually. That's the number that we're focused on. That's the number that made us get into the interventional market that if that $1,200,000 I'm sorry, 1,200,000 injections annually I've asked many of the interventional space, including the interventional neuro, interventional radiologists and people that are involved in this space they think that that 1,200,000 injection count is is soft.

I think it's actually greater So I'll take my chances in that market. Place all day long and I think that this is why the [indiscernible] market is going to expand. There's certainly give you some more competition coming into it, but competition sometimes rises all ties, right, because everyone focused on the market and we got to keep doing what we're doing, but we're getting great clinical results with the TFX. We're not going to sit back just because we've been we've had some good quarters with it. The good rollout with it, we are now in 2 stages of multicenter study with the silo TFX. Which we've already got our IRB approval and we'll be entering into those studies here this year and going into next year. So we're going to be able to put out unbelievable biomechanical and clinical results Biomechanical papers actually just got its publication notice. So it's going to be published. They got accepted by the neuro journal. That's going to hit all the events, posters and and publications, we're going to be able to put that out there on press releases and standby our superior biomechanics that we have and then the multicenter studies will be in line with that.

And that these multicenter studies are going to be with ortho, neuro and pain. As a collaboration because we really that's just our belief and we think we're going to do a good job with Fantastic. The DEXA study results I think you guys were targeting for September, did those come out already?

We have not put them out yet, but we are going to put them out here before the quarter ends here in Q4. We'll be able to put out information on the DEXY and it's super positive. Like we're it's super encouraged by it. [indiscernible] we're going to expand onto that We recently worked agreement with a company that does multi center We worked with them on our zip study. And and Doctor. Pope and some other key people are going to be really key on that. Where we're going to be leading these different studies TFX, a ZYP51 study a DEXA C study continued then we'll go into DEXA L studies, which should be lumbar. Studies. So Aurora would be able to really build off robust data that would support that what we're doing is working not just our our marketing problem, but our actual here's the commitment to data and research. We can look other doctors in the eye and say, look, want you to be part of this multicenter study, we want to be part of this study. We want to prove it. We'll have evidence based medicine, evidence based devices that are actually not just clinically successful as far as volumes or unit volumes, but patients are actually getting better and we can show that data that says this is why doctors should be using our products.

Fantastic. Well, thank you so much for the call today and that's all my questions. Thank you.

Thanks, Rodrigo.

That concludes our question and answer session. I would like to turn the conference back over to Trent Northcutt for any closing remarks.

Thank you all for joining us. We appreciate your time and interest in Aurora Spine. We are very excited about what's ahead in 2024 and beyond. Everyone have a great day. Thanks again.

The conference has now concluded. Thank you for attending today's presentation.

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