Financial Reporting - Xtant Medical Holdings, Inc. reported financial results for Q4 and the full year 2024 on March 6, 2025[5]. - The financial results announcement includes a press release detailing the fourth quarter and full year 2024 performance[19]. - The report does not provide specific numerical data regarding revenue or net income/loss for the reported periods[5]. - The report was signed by Scott Neils, Chief Financial Officer, indicating formal acknowledgment of the financial disclosures[22]. Non-GAAP Measures - The company utilizes non-GAAP adjusted EBITDA to provide insights into its core operational performance, excluding items like separation-related expenses and legal settlements[7][10]. - Non-GAAP adjusted EBITDA is defined as net income/loss from operations before depreciation, amortization, interest expense, and income tax provision, adjusted for specific non-recurring items[7]. - The company believes that non-GAAP measures facilitate internal comparisons to historical results and assist in budgeting and resource allocation decisions[8]. - The company emphasizes that non-GAAP financial measures should be evaluated alongside GAAP measures for a comprehensive understanding of financial results[17]. Company Information - The company is listed on NYSE American LLC under the trading symbol XTNT[3]. - The financial results are part of the company's ongoing strategy to enhance operational transparency and investor understanding[8].

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was $27.9 million, a 12% increase from $25 million in Q3 2023, primarily driven by product sales from the Surgalign acquisition [31] - Adjusted EBITDA for Q3 2024 was a loss of $193,000, compared to a positive adjusted EBITDA of $458,000 in Q3 2023 [36] - Net loss for Q3 2024 was $5 million, or $0.04 per share, compared to net income of $9.2 million, or $0.07 per share, in the same period last year [35] Business Line Data and Key Metrics Changes - The company experienced delays in launching two new products, OsteoVive Plus and Cortera, which impacted sales [9] - Operating expenses for Q3 2024 were $20.1 million, up from $18.7 million in Q3 2023, but as a percentage of total revenue, they decreased to 71.9% from 74.8% [32] Market Data and Key Metrics Changes - The company noted a reduction in surgical procedures, which partially offset year-over-year growth [31] - The summer months of July and August saw a slowdown in procedures due to doctors' vacations, but a recovery was noted in September [38][39] Company Strategy and Development Direction - The company aims to become operationally self-sustaining by controlling its supply chain and reducing reliance on external manufacturers [29] - A licensing agreement in October with a significant player in the advanced wound care market is expected to generate a minimum of $3.75 million in 2025, with high margins due to low incremental costs [12] - The company is focused on increasing in-house manufacturing to improve profitability, with gross margins for in-house products expected to rise from mid-80% to low 90% [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year revenue guidance of $116 to $120 million, representing a growth of approximately 27% to 31% compared to 2023 [8] - The company anticipates a breakout fourth quarter, driven by the resolution of supply chain challenges and the successful launch of new products [23] - Management highlighted the importance of operational leverage and cost reduction as key to improving profitability [21] Other Important Information - The company has doubled its revenue from $58 million at the end of fiscal year 2022 to an expected $116 to $120 million by the end of 2024 [13] - The Surgalign acquisition has revitalized the company's hardware line, enhancing its product offerings in the spine market [14] Q&A Session Summary Question: Can you provide more color on the third quarter results and trends in the fourth quarter? - Management noted that the summer months were soft due to doctors' vacations, but a recovery was seen in September, with expectations for normalcy in Q4 [38][39] Question: What is the revenue mix between orthobiologics and spinal implants? - The expected split for 2024 is roughly 55% orthobiologics and 45% spinal implants, with orthobiologics anticipated to increase its share in future years [42] Question: What are the early considerations for 2025 guidance? - Management indicated expectations for revenue growth approaching double digits and improvements in gross margin and operating leverage [43] Question: What contribution do you expect from VBN in Q4 and 2025? - Minimal impact is expected from the distributor side in Q4, with a more significant contribution anticipated from the white label side [46] Question: How should profitability be modeled for next year? - Management expects improvements in both gross margins and operating leverage to contribute to profitability [48][49] Question: Can you elaborate on the licensing agreement mentioned? - The agreement includes a $1.5 million upfront payment and a minimum of $3.75 million in 2025, with potential for higher revenues depending on performance [52] Question: What is the confidence level in achieving revenue guidance? - Management expressed confidence in reaching the guidance range, supported by new product launches and recovery in sales [53]

Financial Performance - Total revenue for Q3 2024 was $27.9 million, a 12% increase from $25.0 million in Q3 2023, and for the nine months ended September 30, 2024, revenue was $85.8 million, up 36% from $63.2 million in the same period last year[98] - Gross profit margin for Q3 2024 decreased to 58.4% from 61.3% in Q3 2023, while for the nine months it increased slightly to 60.9% from 60.7%[100] Cost and Expenses - Cost of sales increased by 20% to $11.6 million for Q3 2024, and by 35% to $33.6 million for the nine months ended September 30, 2024, primarily due to higher revenue[99] - General and administrative expenses rose 5% to $7.5 million for Q3 2024 and 35% to $23.0 million for the nine months ended September 30, 2024, driven by severance and stock-based compensation[101] - Sales and marketing expenses increased 7% to $11.9 million for Q3 2024 and 40% to $37.5 million for the nine months ended September 30, 2024, mainly due to higher commission expenses[102] - Research and development expenses were $0.7 million for Q3 2024, up from $0.5 million in Q3 2023, and $1.9 million for the nine months ended September 30, 2024, compared to $0.8 million in the prior year[103] - Interest expense for Q3 2024 was $1.2 million, up from $0.8 million in Q3 2023, and for the nine months it increased to $3.0 million from $2.1 million[104] Cash Flow and Working Capital - Net cash used in operating activities for the first nine months of 2024 was $12.6 million, compared to $8.6 million for the same period in 2023[107] - As of September 30, 2024, net working capital was $37.7 million, down from $41.9 million at the end of 2023[106] - The company has $7.1 million in cash and cash equivalents as of September 30, 2024, which, along with anticipated operating cash flows, is expected to meet cash requirements through at least November 2025[117] Financing and Debt - As of September 30, 2024, the company had $12.9 million outstanding and $3.8 million of availability under the Revolving Facility[114] - The effective interest rate for the Prior Term Credit Agreement was 14.42%, while the effective rate for the Prior Revolving Credit Agreement was 9.94% as of December 31, 2023[115] - The company maintained compliance with all covenants under the Credit Agreements as of September 30, 2024[116] - The company may seek additional financing through equity and debt financings, but there is no assurance that such financing will be available or sufficient[118] - If additional capital is raised through equity or convertible debt, current stockholders may face dilution and adverse terms[119] Acquisitions - The company made three acquisitions in 2023, including Surgalign SPV for $17.0 million, additional assets from Surgalign Holdings for $5 million, and nanOss production operations for $2 million[93][94][95] Accounting Estimates - There have been no changes in critical accounting estimates for the three months ended September 30, 2024, compared to the previous fiscal year[121]

Revenue Performance - Third quarter 2024 revenue was $27.9 million, representing a 12% increase compared to $25.0 million in the prior year quarter[2] - Year-to-date revenue reached $85.8 million, up 36% compared to the prior year period[2] - Full year 2024 revenue guidance is reaffirmed at $116 million to $120 million, indicating annual growth of 27% to 31%[10] - Revenue for the three months ended September 30, 2024, was $27,937,000, a 11.5% increase from $25,019,000 in the same period of 2023[17] Profitability and Loss - Gross margin for the third quarter of 2024 was 58.4%, down from 61.3% in the prior year quarter[5] - Net loss for the third quarter of 2024 was $5.0 million, compared to net income of $9.2 million in the prior year quarter[7] - Adjusted EBITDA for the third quarter of 2024 was a loss of $196,000, compared to a gain of $440,000 in the prior year[8] - Gross profit margin decreased to 58.4% in Q3 2024 from 61.3% in Q3 2023[17] - Net loss for the three months ended September 30, 2024, was $(5,024,000), compared to a net income of $9,231,000 in the same period of 2023[17] - Non-GAAP Adjusted EBITDA for the three months ended September 30, 2024, was $(196,000), a decrease from $440,000 in the same period of 2023[19] Operating Expenses - Operating expenses for the third quarter of 2024 totaled $20.1 million, an increase of 7.3% compared to $18.7 million for the third quarter of 2023[6] - Total operating expenses increased to $20,084,000 in Q3 2024, up from $18,719,000 in Q3 2023, representing a 7.3% increase[17] - Research and development expenses increased to $701,000 in Q3 2024 from $490,000 in Q3 2023, reflecting a focus on innovation[17] - The company incurred interest expenses of $1,199,000 in Q3 2024, compared to $760,000 in Q3 2023, indicating increased borrowing costs[17] Cash Position - Cash and cash equivalents as of September 30, 2024, were $6.6 million, up from $5.7 million as of December 31, 2023[9] - Cash used in operating activities for the nine months ended September 30, 2024, was $(12,561,000), compared to $(8,600,000) in the same period of 2023[18] - Net cash used in investing activities was $(3,163,000) for the three months ended September 30, 2024, compared to $(22,471,000) in Q3 2023[18] - The company reported a total cash and restricted cash of $7,086,000 at the end of the period, down from $8,749,000 at the end of Q3 2023[18] Product Development - The company launched two new products: OsteoVive+ and Cortera Posterior Fixation System during the third quarter[2] - A license agreement for Q-Codes and SimpliMax Dual Layer Amniotic Membrane is expected to generate a minimum of $5.25 million in licensing and royalty fees[2]

Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was $29.9 million, a 48% increase from $20.2 million in Q2 2023, primarily driven by product sales from the recently acquired Surgalign Hardware and Biologics business [14] - Adjusted EBITDA for Q2 2024 was $0.5 million, compared to $0.1 million in the same period in 2023, marking the fifth consecutive quarter of positive adjusted EBITDA [5][16] - Net loss for Q2 2024 was $3.9 million or $0.03 per share, compared to a net loss of $2.2 million or $0.02 per share in Q2 2023 [16] Business Line Data and Key Metrics Changes - Organic growth for Q2 was flat compared to the prior year, mainly due to planned cannibalization of X-spine hardware and significant OEM sales in Q2 2023 [4] - The top 20 distributors grew 16.5% in revenue since the acquisition of Surgalign in Q3 2023 [6] - The company expanded its Biologics product offering from two categories to five, with the introduction of a sixth category, amniotic membrane allografts [7] Market Data and Key Metrics Changes - The distribution network now includes over 650 distributors, covering approximately 90% of all beds in the U.S. [9] - The company is focusing on increasing penetration into existing distributors rather than just adding new ones [9] Company Strategy and Development Direction - The company aims to achieve self-sustainability by controlling its supply chain and reducing reliance on external production [12] - Key growth pillars include new product introductions, distribution network expansion, adjacent market penetration, and strategic acquisitions [11] - The company is targeting undercapitalized or subscale companies for acquisitions to enhance capabilities and expand production capacity [11] Management's Comments on Operating Environment and Future Outlook - Management expects organic growth to accelerate in the second half of 2024 as supply chain challenges abate and new products are introduced [4] - The company anticipates positive operating cash flow by Q4 2024, driven by increased production of its own biologics [13][41] - Management is optimistic about the growth potential of the amniotic tissue products and the stem cell business [28][33] Other Important Information - The company entered into an agreement for a $5 million PIPE with an existing institutional investor to provide additional working capital [17] - Gross margin for Q2 2024 was 62.1%, an increase from 61.6% in Q2 2023, attributed to greater scale and improved production efficiency [14] Q&A Session Summary Question: Can you provide color on the revenue mix between orthobiologics and spinal implants? - Management noted that Surgalign hardware significantly contributed to revenue, helping to replace older X-spine hardware, and expects an increase in self-produced products in the second half of the year [18][19] Question: How does the guidance look for the balance of the year? - Management indicated an expected uptick in Q3 and a strong performance in Q4, particularly with the ramp-up of the Stem Cell business [21][22] Question: What are the expectations for gross margins moving forward? - Management expects gross margins to remain steady in Q3 and Q4, with a significant uptick anticipated in Q1 2025 as internal production increases [24] Question: Can you discuss the opportunities in the amniotic product line? - Management highlighted the OEM opportunities and the potential for high margins, noting that sourcing amniotic tissue is currently a limiting factor [28][30] Question: How quickly can the company ramp up production for stem cells? - Management indicated that production ramp-up would occur over the next three to four months, with a focus on fulfilling OEM opportunities first [34][36] Question: What is the outlook for sustainable cash flow? - Management does not expect cash flow breakeven in Q1 2025 but anticipates that it will be sustainable thereafter [39]

Financial Performance - Total revenue for Q2 2024 was $29.9 million, a 48% increase from $20.2 million in Q2 2023, and $57.8 million for the first half of 2024, up 51% from $38.2 million in the same period last year[84] - Cost of sales increased by 46% to $11.4 million for Q2 2024, and by 44% to $21.9 million for the first half of 2024, primarily due to increased revenue[85] - Gross profit margin improved to 62.1% for both Q2 and the first half of 2024, compared to 61.6% and 60.2% respectively in 2023, driven by greater scale and improved production efficiency[86] Expenses - General and administrative expenses rose 56% to $7.7 million in Q2 2024, and 58% to $15.5 million for the first half of 2024, largely due to increased headcount and compensation expenses[87] - Sales and marketing expenses increased by 51% to $13.2 million in Q2 2024, and by 63% to $25.6 million for the first half of 2024, mainly due to higher commission expenses from revenue growth[89] - Research and development expenses were $0.6 million for Q2 2024, up from $0.2 million in Q2 2023, and $1.2 million for the first half of 2024, compared to $0.4 million in the same period last year[90] Interest and Cash Flow - Interest expense for Q2 2024 was $1.0 million, compared to $0.8 million in Q2 2023, reflecting additional borrowings on the revolving line of credit[91] - Net cash used in operating activities for the first half of 2024 was $10.8 million, an increase from $4.8 million in the same period of 2023[94] Acquisitions - The company made three acquisitions in 2023, including Surgalign SPV for $17.0 million, additional assets from Surgalign Holdings for $5 million, and nanOss production operations from RTI Surgical for $2 million[79][80][81] Debt and Financing - As of June 30, 2024, the company had $11.9 million outstanding under its revolving credit facility, with $5.1 million available[98] - As of June 30, 2024, the company had $5.5 million in cash and cash equivalents, supplemented by a recent $5.0 million private placement, expected to meet cash requirements through at least August 2025[102] - The effective interest rate for the Prior Term Credit Agreement was 14.42%, while the effective rate for the Prior Revolving Credit Agreement was 9.94% as of December 31, 2023[100] - The company is in compliance with all covenants under the Credit Agreements as of June 30, 2024, which include maintaining net product revenue and minimum liquidity levels[101] - The company may seek additional financing through equity and debt financings, with no assurance that such funds will be available or sufficient to meet operational needs[103] - If additional capital is raised through equity or convertible debt, current stockholders may face dilution and adverse terms[104] Accounting and Compliance - There have been no changes in critical accounting estimates for the three months ended June 30, 2024, compared to the previous fiscal year[106] - The company may require additional capital to fund future operations and business strategy prior to August 2025[102] - The Credit Agreements impose restrictions on incurring additional indebtedness, engaging in mergers or acquisitions, and paying dividends[101] - The company’s financial statements are prepared in accordance with U.S. GAAP, requiring estimates and assumptions that may materially differ from actual results[105] - As a smaller reporting company, the company is not required to provide detailed market risk disclosures[107]

Financial Performance - Revenue for Q2 2024 was $29.9 million, representing a 48% increase compared to $20.2 million in Q2 2023[3] - Gross margin improved to 62.1%, up 50 basis points from 61.6% in the prior year quarter[4] - Net loss for Q2 2024 was $3.9 million, compared to a net loss of $2.2 million in the same quarter last year[4] - Adjusted EBITDA for Q2 2024 was $0.5 million, an increase from $0.1 million in Q2 2023[5] - Revenue for Q2 2024 reached $29,943,000, a 48.4% increase from $20,232,000 in Q2 2023[11] - Gross profit for Q2 2024 was $18,582,000, with a gross profit margin of 62.1%, compared to $12,459,000 and 61.6% in Q2 2023[11] - Total operating expenses increased to $21,528,000 in Q2 2024, up from $13,850,000 in Q2 2023, primarily driven by higher sales and marketing expenses[11] - Net loss for Q2 2024 was $3,861,000, compared to a net loss of $2,190,000 in Q2 2023[11] - Non-GAAP Adjusted EBITDA for Q2 2024 was $504,000, compared to $105,000 in Q2 2023[13] Cash Flow and Financing - Cash and cash equivalents as of June 30, 2024, were $5.4 million, down from $5.7 million at the end of 2023[5] - Cash used in operating activities for the first half of 2024 was $10,843,000, significantly higher than $4,766,000 in the same period of 2023[12] - The company reported a net cash provided by financing activities of $11,613,000 in the first half of 2024, compared to $6,522,000 in the same period of 2023[12] - The company had cash and cash equivalents of $5,379,000 at the end of the period, compared to $4,138,000 at the end of Q2 2023[12] - The company entered into a $5.0 million private placement on August 7, 2024[2] Product Development and Market Expansion - Two new amniotic membrane allografts products, SimpliGraft™ and SimpliMax™, were launched in Q2 2024[2] - The company signed 15 new distributors and awarded 20 IDN contracts in Q2 2024[2] Operating Expenses - Operating expenses for Q2 2024 totaled $21.5 million, up from $13.9 million in Q2 2023[4] - The company incurred $13,179,000 in sales and marketing expenses in Q2 2024, up from $8,716,000 in Q2 2023[11] - Research and development expenses increased to $636,000 in Q2 2024, compared to $180,000 in Q2 2023[11] Future Outlook - The company expects full year 2024 revenue to be between $116 million and $120 million, indicating annual growth of approximately 27% to 31% compared to 2023[6]

Xtant Medical Holdings, Inc. (NYSE:XTNT) Q1 2024 Results Conference Call May 15, 2024 4:30 PM ET Company Participants Brett Maas - Managing Partner, Hayden IR Sean Browne - President and Chief Executive Officer Scott Neils - Chief Financial Officer Conference Call Participants Ryan Zimmerman - BTIG Chase Knickerbocker - Craig-Hallum Operator Greetings. Welcome to the Xtant Medical Holdings, Inc. First Quarter 2024 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 001-34951 XTANT MEDICAL HOLDINGS, INC. (Exact name of registrant as specified in its charter) | Delaware | ...

Exhibit 99.1 Xtant Medical Reports First Quarter 2024 Revenue Growth of 55% and Raises Full Year 2024 Revenue Guidance ● Revenue of $27.9 million, up 55%, compared to the prior year quarter ● Gross margin of 62.1%, up 340 basis points, compared to the prior year quarter ● Net loss of $4.4 million compared to $2.1 million in the year ago quarter ● Positive Adjusted EBITDA; Adjusted EBITDA of $0.1 million compared to an Adjusted EBITDA loss of $0.3 million in the prior year quarter ● Launched two amniotic mem ...