Conference call notes ASG Here are my notes from ASG's
conference call:
60 doctors/pain interventionalists are now purchasing from Aurora on a consistent monthly basis.
ASG had its best ever quarter of $4.067m
Ceo Trent Northcutt stated on previous calls that he felt there would be more doctor holidays this year as many hadn't taken time off due to COVID. This has indeed played out.
Doctor training continues to move forward. There were 200 doctors, pain interventionalist etc trained in the first 6 months and they plan to train another 200 throughout the balance of the year. *I didn't ask specifics but I have a feeling that out of this 200 there is duplication as there was some training on Dexa for example.
Management feels strongly that the latter half of 2022 will be the strongest. I asked if they felt that $5m USD/Q was possible and I was told that this is possible in Q4 with Dexa-C being fully rolled out and with Dexa-L(Already approved) +Silo TFX (If approved) planned beta rollouts. Note R+D costs will drop off and so will FDA associated costs for testing and filing. Q4 should be a massive quarter for Aurora Spine both in terms of sales and for profits.
Margins are increasing across the board with increased new proprietary devices being added and should also increase moving forward with Silo TFX and Dexa-L yet to hit the market.
Supply chain issues are abating and are not really as much of an issue right now.
Break even is approx $1.1 to $1.2m/month for business operations. Additional costs such as FDA filing, product testing, doctor training make up the balance of non essential costs. Management expects to see a significant drop on R+D costs in Q4/22 as all their devices would be approved by then.
Management feels that they have enough cash on hand to see them through to full profitability. They are not considering doing a raise here. The company has $750K USD of cash and over $4m USD in receivables. They are monitoring the receivables closely but are not concerned about collecting. I have had a discussion on this during a previous call and it was mentioned that a lot of these payers have been clients of ASG for a long time and they haven't had really any issues in the past.
New products that will be impactful to future earning moving forward:
Dexa-C: Newly approved device is still in beta rollout. 4 doctors currently using. Full rollout to occur in 4th Quarter.
Dexa-L Beta rollout to occur in 4th quarter
Silo TFX approval has been delayed due to further testing requirements from the FDA. Tests will be finished by months end and we can expect approval sometime within the next 30 days following data being handed in. Silo TFX would see a beta rollout in Q4
I plan on holding a Zoom call with management in which I will tape. I will make this call available for anyone who would like to participate.