Aurora Spine Corporation (ASG) Earnings Call Transcript & Summary

Good morning, everyone, and welcome to the Aurora Spine Financial Results Conference Call. [Operator Instructions] Please also note today's event is being recorded. At this time, I'd like to turn the floor over to Chad Clouse, CFO. Sir, please go ahead.

Thank you, operator. Welcome, everyone, and thank you for joining us today. A review of the financials of Aurora Spine for the fourth quarter and fiscal year ending December 31, 2023 and the first quarter 2024. With us on the call representing company today are Trent Northcutt, President and CEO for Aurora Spine; and myself, Chad Clouse, Chief Financial Officer of Aurora Spine. Before we begin, I'd like to remind everyone that the statements made during the course of this call may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Act of 1934. These statements reflect current expectations concerning future events and results. Words such as expect, intend, believe, may, will, should, could, anticipate and similar expressions or words that are used to identify forward-looking statements but their absence does not mean a statement is not forward-looking. These statements are not guarantees of future performance and are subject to the risks and uncertainties and other important factors that could cause performance or achievements to be materially different from those projected. For a full discussion of risks and uncertainties and factors, you're encouraged to read Aurora Spine's documents on file with SEDAR+, including those set forth in the periodic reports filed under the forward-looking statements and Risk Factors section. Aurora 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 refer to EBITDAC and adjusted EBITDAC, adjusted net income and adjusted EPS, which are not measures of financial performance under the generally accepted accounting principles or GAAP. Management believes that these non-GAAP figures in addition to the GAAP measures provide meaningful supplemental information regarding the company's operational performance. Investors should recognize these non-GAAP figures might not be comparable to similarly titled measures of other companies. These measures should be considered in addition to and not as a substitute or superior to any measure of performance prepared in accordance with GAAP. A reconciliation of non-GAAP measures and the most directly comparable GAAP measures in accordance with SEC Regulation G can be found in the company's earnings release. With that, I'd like to now turn the call over to Mr. Trent Northcutt, President and Chief Executive Officer of Aurora Spine. Trent, please proceed.

Thank you, Chad. I'd like to welcome everyone to Aurora Spine's fourth quarter and fiscal year 2023 and the first quarter 2024 financial results conference call. Yesterday, we issued a press release detailing our financial results for the first quarter of 2024. Hopefully, you've had a chance to review this news release, but if not, a copy can be found on our website at auroraspine.com, that's www.aurora-spine.com, under the Investors section of our -- and other financial websites. To layout the agenda for today's call, let me first summarize a few key events of the last 2 quarters. For the first year 2023, we talked about status of each of our key initiatives, products like ZIP and SiLO. Chad will give you a recap of the financial results, and then we'll continue with Q&A sessions at the end. As the [ tighter ] momentum continues to surge, we find ourselves at the forefront of riding the wave of innovation with Aurora products, including a revolutionary ZIP and the [indiscernible] SiLO product, tailing our minimally invasive procedures to successfully -- their ability to offer alternative treatments, path -- steering clear of excessive [indiscernible] in the midst of an opioid epidemic. The launch of the SiLO TFX marked a pivotal moment in our journey, unlocking a vast round of possibilities in the SI Joint Pain market. The release of the SiLO TFX was a tremendous event for our company in the SiLO franchise immediately accepted by the pain market, orthopedic market and neuro market. The SiLO sales were strong at $1.33 million in the fourth quarter of 2023, and we exceeded that by $1.41 million in Q1 of 2024. And let's not forget the resounding success of our ZIP series. The interim results of this clinical study published by the pain and therapy speaks volumes with 82% of our patients reported improvement and 65% clinically meaningful pain reduction, it's clear that the ZIP device is not just an effective product, but it's also safe, ushering a new era of lumbar spinal stenosis treatment. ZIP sales continue to be strong with $6 million in sales in 2023 compared to $4.7 million in 2022. That's a $1.3 million increase. Increased marketing for the Zip 51 implant paid off, sales surging from $185,000 in Q1 in 2023 to $624,000 in Q4 of 2023. Overall, ZIP sales increased $1.5 million in Q4 2023 to $1.63 million in Q1 2024. As we turn our gaze to DEXA, the company is making efforts to revive our clinical business -- cervical business through hiring some new spine-focused sales staff, increased the marketing of our ortho neurosurgeons. We have our IRB approval in hand and the steadfast sales team. We're poised to place the DEXA-C kits and capable hands of doctors who will be ushering in new standards of care. Looking into 2024, we believe that we are on proper track to continue revenue growth with the second consecutive quarter of $4 million plus in sales. We continue to expand our sales force in the new year into new regions in the country, allowing the company to cover more surgeries, internal staff, which will lower our commission costs across the board. To summarize, I'm extremely proud of our team's performance and stay focused on building this company. We are well positioned to take advantage of the growing spine and pain markets with proprietary products. We remain focused on penetrating these markets further this year through continued training sessions and clinical trials. I will now turn over the call to Chad Clouse, CFO -- Aurora Spine's CFO, who will continue the financial results. Chad, please proceed.

Thank you, Trent. The numbers highlighted in detail in the press release, let me focus on a few areas. During the 3 months ended December 31, 2023, we generated revenues in the amount of $4.04 million compared to $3.61 million in the same period of the previous year, an increase of $434,000 or 12%. Quarter saw increased activity in the pain market with an increased SiLO joint sales -- SiLO joint implant sales due to solid TFX release and the continued growth in ZIP implant. For Q4 2023 cost of sales was $1.75 million, and gross profit was $2.3 million as compared to $1.78 million and $1.83 million, respectively, in the comparable period. Gross margins in the current period were 46.7% of revenue compared to 50.6% of revenue in the comparable period. Higher margin was due to increased sales of higher-margin implants and lower distributor costs, offset by higher shipping and royalty costs. Operating expenses during the quarter Q4 quarter were $2.58 million compared to $2.67 million during the same period previous year, a decrease of $85,000. Operating expenses were lower during the current quarter, primarily due to decrease in research and development, marketing costs and software costs offset by higher salary costs. Salary cost increased because company hired more salespeople. As the results of the evolving EBITDAC during the 3 months ending December 31, 2023, was $109,734 compared to a negative $358,311 during the same period in the previous year, an improvement of $468,000. During the year ended December 31, 2023, we generated revenues of $14.5 million compared to $14.8 million during the previous year. This is a decrease of about $366,000 or a 2.4% decrease. The decrease is primarily due to coding issues with the SiLO [indiscernible] product decreased -- and decreased cervical implant sales. [indiscernible] medical coding changes for the SiLO allograft implant that led to decreased sales. However, the company released a SiLO-TFX implant that was sold under the existing medical coding, SiLO allograft implant was given a permit code in 2024. During the year ended December 31, 2023, cost of goods sold was $6.3 million and gross profit was $8.2 million or 56.5% of revenues during the year ended 2022. Cost of goods sold was $7.1 million and gross profits were $7.8 million or 52.5% of revenue. Change in margin is due in part to changing product mix, particularly in increasing different SiLO TFX sales. Operating expenses during the year of 2023 were $9.9 million compared to $9.4 million in the same period previous year. The increase in operating expense was primarily due to increased payroll reconstructed commissions and insurance, the company hired more salespeople for direct sales. As a result, [indiscernible] EBITDAC during the year ended December 31, 2023, was a negative $311,000 compared to a negative $265,000 in the previous year, a decrease of 50 -- $45,000. Q1 2024 during the 3 months ended March 31, 2024, the company generate revenues in the amount of $4,013,801 compared to $2,958,088 at the same period of the previous year, an increase of approximately $1 million or a 35.7% increase. Current quarter saw increased activity in the pain market and increased SI Joint Pain sales related to SiLO TFX and continued growth in ZIP implant. [indiscernible] targeting the pain market with increased marketing, training and new product releases and an increase in sales force as a result in the changing product mix with large increases in our Zip 51 and SiLO TFX sales. During the quarter, cost of sales were $1.53 million and gross profit was $2.48 million as compared to $1.43 million and $1.53 million, respectively, in the comparable period last year. Gross margin in the current period was 61.9% of revenue compared to 51.7% of revenue in the comparable period. Gross margin was higher due to increased sales of high-margin implants and large [indiscernible] commissions offset by higher shipping costs and royalty costs. Operating expenses in the current quarter were $2.75 million compared to $2.19 million in the same period previously, an increase of $560,000. Operating expenses were higher during the current quarter, primarily due to increased sales staff, offset by a decrease in research and development and professional fees. Salary cost and travel costs -- salary cost and travel cost increases, the company hired more salespeople. As a result of above, EBITDAC during the 3 months ended March 31, 2024, was $117,000 positive compared to a negative $377,000 during the same period of the previous year, an improvement of $495,000. That concludes my comments. I'll now turn the conversation back to Trent.

Thank you, Chad. Operator, we're ready for any questions.

[Operator Instructions] Our first question today comes from Tom Fedichin from Microcap Connection.

I'm curious, Q1, we saw sales. They were actually -- they declined over Q4. I know in Q4, we had the Dubai conference, which affected sales. Can you speak to Q1, just in general, the revenues, if it's -- traditionally, it's a bit of a weaker quarter. But more importantly, I guess, really the outlook moving forward, will we see a ramp-up of sales into Q2. It just seems that sales were quite flat in Q1?

Actually, I disagree, Tom. I think Q1 sales from historic standpoint, we're way ahead of where we were in the previous years. January 2023, we did $849,000. In February, we did $960,000. In March, we did $1 million. So in 2024, we were able to average nearly almost 1.4, it's an average per month in the Q1. And we had on the books schedulized lines, we had over $5 million scheduled. But due to weather, and we also had one of our top surgeons and our group had a hand infection. So he lost a couple of weeks of surgery, which affected some of the numbers. And then we had another major one of our contributor doctors leave their practice to join another practice. So only in the last a couple of weeks of the first quarter, did we have a slight change in it. But momentum-wise, we had on the books, like I said, $5 million recorded on the books on the calendar. So we were heading in the right direction.

Okay. Okay. No, just looking at the last 3 quarters, they're all right around $4 million, and that's why I ask, when do we expect to see the hockey stick kind of growth? I know we've seen the tweets and whatnot of $24 million and '24. And at some point, we have to see the ramp-up of sales, which does lead into kind of a secondary question, and that is the -- with the ramp-up of sales and accounts receivables increasing, are you able to achieve both keeping AR down, but at the same time ramping up sales? It seems to be a tight -- it's a balancing act right now.

Always a balance act, but let me address the first part of the question. The goals that we set out last year and going into this year, which is what I was really clear on when I was -- I kept talking with everyone and the #1 goal of the company was to move towards a profitability mark. That was goal #1. And that's where we were striving towards. We certainly would love to get into a mode of a hockey stick performance, but we got to be profitable first, and that was the key goal for us. And that's what we did, showing positive EBITDAC for Q1, and we were able to extend that up and over the growth of the company, Q3, Q4 going into Q1. And we see that trend continuing going into Q2. I think if we continue to stay focused on those type of revenue goals being profitable, executing on those sales. We'll hit some, we'll miss some, but we're certainly in the game and we're constantly pushing forward. Now to address the second question, which was AR collections, we're addressing that head on. We're jumping into it both feet. We have a stack of new interview people that we're bringing in to help us collect faster on the AR collections. We're in constant communication with some of the accounts that have the highest AR debt with us, and we feel very confident in most of those that they are able to get their finances on track to be able to get their payment back to us on track. So I feel good about most of it, which is the bigger pieces of that AR revenue number.

Can you speak to the concentration of the accounts receivables, like what the size is for some of the largest debtors and maybe at the same time, talk about the collectibility of the AR. How much is it 30 days, 60 days and 90 days, is -- if you can kind of just give investors an idea as to what sort of payment schedule are we looking at? And if it's spread out equally over the course of 30, 60 and 90?

Chad, I'm going to let you jump into more of [indiscernible] question.

Yes, I can do that one question. Concentration isn't too bad. I think we've got 2 accounts that are in the $400,000 or 50 range. One of them had been at $1.4 million at one point, and they've paid it down to $400,000 over the last 1.5 years. Another account, it's $400. They're getting refunded this month, and they promised to pay that all off. They've had a good track record with us. We're not really concerned there. As for the stuff over 60 days, I'm sure is what stands out in the financial statements, and I'd like to say that we've collected a large portion of that already. So our DSO is historically anywhere between 75 and 90 days. So while it looks extended in the financial statements, I think that people are paying in within that window. We've got some people that pay within 30 days. We've got some people paid within 60 days, but the majority will pay within the 75- to 90-day window.

Perfect. Okay. And on a go-forward basis, with the ramp-up of sales, you brought on, of course, new sales directors, and you're anticipating increased volumes of surgeries. Do you have the wherewithal to continue on without the need to do another financing?

Yes. We believe we don't have -- we're not in any conversations of refinancing. Two of the major people that have the depth into us. One of them, we're super close with, it's one of our top accounts. And they're moments away in their words from closing some financing that they're doing in their organization. They've been very communitive with us, and we believe that they're telling us. The second one that Chad mentioned, we've been constantly in contact with them, and they're paying chunks of $50,000 and constantly pushing towards paying us back. And yes, so we're not in the market of raising any capital. We're headed down full focus, and that's being profitable and keeping that positive EBITDAC going forward keeps us in a position of strength. And we'll get this AR down. It's one of our top goals for this first half of this year as the AR paid down way down.

Okay. Good. Good. Good. How many new sales directors you have on right now and as we move into 2024? And are you noticing a ramp-up of revenues as a result of these new directors? Any standouts?

Yes. We certainly have some good standouts in the organization. The key areas that have really helped out were -- we did -- last year, we added someone really strong in the West. They constantly run way over 100% to forecast every single month. They helped bring in one of our largest newest accounts, which was the last year. And that particular account last year was like #3 on the list. And this year, they're going to be #1 on the list as far as like total revenue for the company. And just that person alone is out helping us talk to other colleagues and telling of what success he's having in his clinic and in his specialty, and we really appreciate that. So he's been on the forefront of helping us lead the charge. He's making -- helping us make introductions with people. We've been actively involved in their congresses, meeting with more and more of those colleagues. And we're showing it with not just sales [indiscernible], but we're showing them with the multicenter study that we completed and is still ongoing with the ZIP device, which is why ZIP sales are continuing to charge upward. We started the campaign last year as part of that conversation with that account that we would work on the promotion on the Zip 51 and the Zip 51, as you probably saw in the press release, grew 193%. And it was real revenue, like it was a real revenue increase compared to 185,000 all the way to over $0.5 million in sales. And that's our product. It's our IP. We machine the majority of those implants here in-house. There's a lot of those implants now implanted across the country with really great clinical results and helping the company grow and helping patients get better.

Wonderful. How many more sales directors...

We have over 10 people in the field. The regions -- I just step away from my computer here, but we are looking at the map we've got -- the Northwest is now just as of 45 days, 60 days top is now we have a really strong regional sales director up in the Northwest, which we've never had one in the history of the company. We've added a person in the Michigan, Upper Peninsula, Great Lakes area, a strong person with the spine and a pain background. Steve, in the Arizona area, we never had a regional manager in that area that was [indiscernible]. He came in last year, and he is now regularly growing at over 100% forecast. We added personnel in the Mississippi, Alabama, Tennessee area, the Georgia, Florida area, North Carolina, South Carolina, West Virginia and the new RSD up in the Northeast. And we're going to fill in a new RSD in the kind of the upper 4 corners. So that Utah, Wyoming and Colorado, and we're close to getting somebody on track in the right up the belt of the Midwest, say, in the St. Louis area. We have a VP of sales who lives in Chicago, who is VP of the East, and we have a VP of the West who's in Nevada, but we're about to add 2 new people up there in the Midwest, which we think will be really key to us. We're 1 head count down on our goal, but we think we'll take 2 steps forward with adding on to 2 new people here in the coming weeks.

Nice. Can you speak about the margin -- the increase in margins and the direct -- the results of bringing on these new sales directors having an impact with the margins, given it's more of a direct sales approach versus the distributor model that you were doing before. So maybe you could break that down a little bit and speak to the margins that you've currently got and if there's ability to even improve the margins going forward?

Yes. Margins -- the increase in margins is going to continue to push forward. And a lot of that comes down to what we did historically. One, we did all these trainings. We didn't have regional coverage, and that was our problem. We did a lot of trainings with doctors over the last couple of years, and there was doctors in certain areas that we just didn't have the right or have anybody for that matter in those areas to be able to give them that corporate touch to be able to give them that surgical support. And what we -- what that translated to is that those doctors that did get trained on those products now that they start to come around use our products because there's somebody there in their backyard who can support them. We didn't need a distributor in that area because we were able to cover those cases directly ourselves, which is obviously a big increase in revenue for us, an increase in the profit margin because we're not having to pay as much out to the commission to an independent distributor. Now we love our distributor network and in pockets of the country that we just don't have access to. That's where distributorship is really, really strong, and we really commend those people who help us out there in those areas. But as I mentioned to you on the map, we've got areas that we're going into, and we're able to get more and more penetration in those areas with our regional sales directors. And then part of our strategy going into the second half of the year is after the region has been more managed in a more appropriate way, they will start to drop in what we call territory managers, which is essentially is your direct sales rep. So we actually have -- and we have 2 of those right now. One of them is examples in Utah, where she is -- that's her job is just to manage those -- that area. She only stays within that -- driving within a 2-mile radius in every direction to manage those accounts in that area, that's her job, and she does a really good job in that area. And we're going to continue to add those type of PMs in the country where we don't necessarily need a distributor, but we'll be able to have our direct sales. And that should show an increase, if I'm right, I think it will happen as early as this quarter and going into the next quarter, we'll see an increase quarter-over-quarter by percentages each quarter going forward.

Okay. And speaking of percentage increases, with all these new sales directors coming on, it takes 3 to 4 months, I understand, to train a new sales director. When do you see sales really, really racketing up? I know the last 3 quarters have been around $4 million. And can we expect to see a $4.5 million quarter here soon? Is that something that you see as you look forward? What sort of growth do you anticipate we should see in 2024?

So in 2024, we're still eyeing to achieve over $20 million of sales is our goal. That's what we have internally. We started the year off in December, we said, well, let's make it a goal to try to get '24 and '24. And then as we got into the year to kind of get our feet underneath this, we still feel confident that we can get over $20 million in revenue. And I'm not giving any guidance, but I'm just telling you what the internal goal is and what we're trying to achieve. And in our model, we didn't build a model to be at $24 million. We wrote it down is that we put it into where we thought we could get those milestones to hit. But we stayed true to our -- to what we said we're going to do, be profitable and get into getting through this first quarter and be able to have that positive hit and we had over $5 million in booked revenue on the calendar in surgery. So we know if we can book $5 million, we can achieve $5 million. So if we can achieve $5 million, we're going to be able to achieve the $4.5 million that you're talking about. So we know that, that's our next goal is to get up and over. The consistent of over 1.5 million a month, which is what you hear me talk about all the time. We saw that consistency of over $1.4 million, which was nice because last year, we had -- August was 1.4%. September was 1.4%. October was 1.4%. November was 1.5%. December was down. We knew about the Dubai conference. And then we started the month off and hit the quarter off on the right step. So it wasn't for a couple of changes and a hand infection we would have hit an average of $1.5 million in the first quarter. So it was all right there, right in front of us. It wasn't a reach. It was literally on our table. We just had to continue to keep our heads down and stay focused on that. So I'm super encouraged with what the team is doing.

Yes. That's good. What is your breakeven right now per month?

1.4.

1.4. Okay. And last question from me, and it's more maybe a little bit of a comment and the question is you're very good on LinkedIn. So investors should look on LinkedIn and Twitter. But there seems to be a little bit of a lack of news -- putting press releases out. Are you guys going to put more of a concerted effort moving forward to try to get the word out to shareholders. For example, veteran affairs to be the news could be posted of working with them. And I'm sure there's other things like DEXA, DEXA-L, the rollout of that as well. Maybe you can talk about -- and also conferences. I never mentioned that [ Planet MicroCap ] could be attended or [ LD Micro ]. Is there anything that you're going to do a to just make the company bring more attention to the company moving forward to give investors kind of a feeling of, hey, here with us. And we're in this together. We want the best for the company, and we're going to do everything possible.

Well, I think it's a really good comment, Tom. And number one, I'm absolutely with all the investors. I fight this fight every day, as you know, and it's still a great fight to fight because I know what we're doing is working. I know that we're getting such great results with the way the products are being used in the patients, how much release the patients are getting. We have people coming to us wanting to work at Aurora versus us trying to beg for people to come to Aurora. So I hear you loud and clear. I absolutely will start to put more press releases out there. But I only want to put out press releases that are meaningful. I don't want to put out fluff into the market. I'm trying to promote our products because we know our products like the back for hand, but I want to get more people aware of our products. So we're having a much bigger social media presence because the usefulness of a lot of these new surgeons and pain surgeons that are out there coming on the scene, they're very social media savvy. Way beyond my ears, right? I mean they're really good at it. We're trying to get more information out. When we started off in the first quarter, there was a lot of information that came out, and we're about to come up -- we have some more series of information that's going to be released in press releases. We have a very strong calendar full of events through the rest of the year. It slows down a little bit during the summer, but we were just in a conference up in the Northwest this week. We haven't put out any press release on that, but we will. We're going to be part of a big meeting in Chicago in June, and I'm looking at my calendar here. And then in July, we're at the ASPEN Conference, ASPN, which is in Miami every year. And we plan on making a big splash there because we have lots to talk about. Because 1 year ago, we released the data on the ZIP and we released the SiLO TFX system because the SiLO TFX is essentially 1 year -- full year end now, and we have lots to talk about at that conference. So more press releases will be issued, I assure you.

Perfect. And I apologize, I skipped over one question actually, and that is the DEXA-C. You had mentioned on the call about putting a renewed effort into the DEXA line, DEXA-C. I believe you had mentioned that you've hired a couple of these new regional sales directors to focus more on that. Can you speak about DEXA-C? Can you also speak about DEXA-L and when you expect that to roll out?

No problem. DEXA, in the overall orthopedic neuro spine market for Aurora is a -- one, I want to hit the [indiscernible] where I wanted to hit the [indiscernible] and be fast tracking to grow the company. But how we're going to grow this company is it has to be a blend of the pain side, of course, and it has to be a blend of the orthopedic in the spine market. So the newer hires that we've brought in, we've made a conscious effort to -- during that interview process with different candidates to find out, do they have a spine background. And we are actively looking to put on more true spine representation across the country, even if we have to add higher management person, say, like a VP of spine, to be brought in. We're making those decisions, and we are interviewing those types of people. And DEXA-L is still in the -- we are in the sterilization validation. It's already FDA approved, as you guys know, but there's a process where the product has to be validated with the FDA that indeed, it is sterile inside the packaging, and we're waiting for that -- those results to come back. It's not a matter of if we don't think it's not going to be. It's just a time thing. It just takes time. So the second half of the year is scheduled the front end of the second half of the year, where we'll be able to run an alpha phase of the DEXA-L product, and we already have those surgeons selected to use that product once it comes right off the shelf, it will be ready to go for them and they'll have their patients ready to go for us, and they'll consistently use that product. And also, we are in the -- before the second quarter is over, we are doing -- releasing and trialing our HYDRA System, which you've heard me talk about over the last 2 years the HYDRA System will be out on an alpha phase and the use of that device, which has been part of the model for the last couple of years is going into new surgeons that have been with us but don't use that style product, with our third-party product, which is the last third-party product we have, which is the German system. We have our own system now that is being put in their hands here in the -- by June of this year, they'll be able to start to implant that, and that will be counted towards a new revenue for the company, and we expect that revenue to be an additional over $100,000 a month in new revenue.

I really appreciate it, guys and -- continued success.

This is going to be the year that we remember, I assure you.

Our next question comes from Lindsay Leeds.

Trent and Chad, I want to congratulate you on 3 consecutive quarters of positive EBITDA. And I wanted to ask, you just talked about HYDRA. Is that just a brand name for the lumbar kit? Or are those 2 different things?

That is a brand name for the lumbar kit.

Okay. And you have a high degree of confidence, that's going to launch in Q2?

Yes, I do. In fact, we have the most of the build-out of the kits here actually in the building. And our manufacturing partner in that device was in our office last week. And we're just now putting the kits together, the accounts -- the surgeons that will be using the device are ready when it's ready to be put in their hands. So we're highly confident in that release this quarter.

Awesome. I wanted to ask about your product lines, which of your product lines is the easiest to sell to a physician who's never used an Aurora product?

A good question. I left the question. I think if you're an orthopedic spine surgeon, it's easy for -- if you have spine background or if you have spine relationships, it's easy to talk to them about DEXA-C. DEXA-C is a cervical device, and the DEXA-C is something that is new to the market. It's relevant to Aurora because of the patent that we were able to achieve on it. We are in a multicenter study with that device right now as we're speaking. It's collecting data, so we're able to not just show features and benefits of that device, but it allows us to show actual clinical data that comes out of that. If you're an orthopedic surgeon because not a lot of neurosurgeons use, SI joint products. I think another product that's really great for the orthopedic market is our SiLO TFX system because of the superior by mechanics that we are able to produce on that device. We have a paper that's about to be published. It's coming out within 2 weeks, I assume. We signed off on everything on that biomechanical data last week, and it allows the doctor to effectively fuse the SI joint segment of the patient efficiently with lower time in the operating room, less blood loss, and superior biomechanics. And I'm talking about super biomechanics against the leading SI joint products that are out there in the market. So we're very confident in our biomechanics and we think that's a great door opening product, those 2 devices. If you're in the pain market, we've been able to do 2 things effectively, which was get involved with the pain interventional market an SI joint fusion standpoint. We started with the SiLO device, which was the allograft and it had gone up and down with some headwinds of coding reimbursement, but it seems like it's settled down. And now we are able to introduce the SiLO TFX to the interventional pain market, and it has continued to grow. I mean it's growing tremendously as a product also efficient in the hospital and the surgery center. And then the second thing that allowed us to really get involved with the interventional market was the need for them to use the ZIP device and the ZIP 51, which really stood out, as I mentioned in our release. We had a campaign of all of last year, which was 51 reasons and 52 seasons that uses 51. Now it sounds like a corny marketing plan, but my marketing plan grew the product 193%. So it worked, and we're going to continue to promote on 51 because it's a really great door opening device to be able to go to an interventional doctor and say, what do you currently use to treat L5-S1 pain and fusion. And what do you use? And usually, they don't have an option because there's not a lot of options out there. We call ourselves the gold standard in L5-S1 because we have great product with a multicenter study that proves that it's effective.

With regarding the SiLO TFX and -- the first couple of quarters, the product was out, sales were just rocketing forward at a very high percentage. It feels like it's slowed down a bit. Have you hit a wall where you've kind of saturated your early adopters and now the additional growth is harder one? Or can you shed any light on that?