Q1 2022 Xtant Medical Holdings Inc Earnings Call

Okay.

In the same quarter of the prior year. This 3% increase in revenue is attributed primarily to introduction of new products and greater private label and OEM sales.

Gross margin for the first quarter of 2022 was 58, 3% compared to 65% for the same period in 2021.

This decrease was attributed to sell through of product subject to higher production costs unfavorable product sales mix and greater inventory reserve expense, we continue to expect higher product costs will adversely affect our gross margin in future periods.

First quarter 2022, operating expenses were $9 4 million compared.

Compared to $8 1 million in the same period, a year ago as a percentage of total revenue operating expenses were 72, 5% compared to 64, 6% the same period a year ago.

General and administrative expenses were $4 million for the three months ended March 31, 2022 compared to $3 million for the same period in 2021.

This increase is primarily attributable to increased expense related to licenses and fees additional bad debt expense and costs related enterprise resource planning system upgrades.

Sales and marketing expenses were $5 $2 million for the three months ended March 31, 2022, compared to $4 $9 million for the same period of 2021. This increase was due primarily to increased commission expenses due to higher revenues and greater salaries and wages.

Net loss in the first quarter of 2022 was $2 2 million or 3% per share compared to a loss of $29000 or zero cents per share in the comparable 2021 period.

Adjusted EBITDA for the first quarter of 2022 was a loss of <unk> $9 million compared to adjusted EBITDA of $8 million for the same period in 2021 as.

As of March 31, 2022, we had $16 $8 million of cash and cash equivalents seven $5 million of net accounts receivable $17 $3 million of inventory and $3 $5 million available under our revolving credit facility.

Now I'll turn the call back to Sean for closing remarks.

Thank you Scott as stated before 2022 is off to a solid start we've achieved 13% growth in our biologics revenue during the first quarter. We have made inroads within the $2 $4 billion Ortho biologics market. We are building a strong distribution footprint in order to maximize our sales.

We have developed a pipeline of new and exciting products and we've taken advantage of the opportunities presented in our adjacent markets with each successive month in the first quarter better than the previous we're encouraged with the promising trend across our markets.

There remains much work to be done both commercially and operationally, but we look forward to addressing each challenge as it is presented in closing I'd like to reemphasize, our mission of honoring the gift of donation by allowing our patients to live as full and complete a life as possible our valuable employees live by these words, each and every day in order to.

Bring our solutions to patients in need.

I personally like to thank them for their continued commitment to our mission.

Thank you for joining us today and for your continued support I will now turn it back over to the operator.

Thank you. This concludes our call all parties may now disconnect.

[music].

Yeah.

[music].