AZIYO BIOLOGICS(AZYO) - 2025 Q1 - Quarterly Results

Sales Performance - EluPro sales increased by 84% sequentially, contributing to a 31% year-over-year growth in BioEnvelope revenue, totaling $3.1 million, with EluPro accounting for approximately 52% of BioEnvelope sales in the quarter[2] - Overall net sales decreased by 10% to $6.0 million compared to $6.7 million in Q1 2024, with net sales of SimpliDerm at $2.6 million and Cardiovascular products at $0.3 million[6] - Net sales for Q1 2025 were $6,030,000, a decrease of 9.95% compared to $6,694,000 in Q1 2024[14] Financial Metrics - Gross margin on a GAAP basis was 40.7%, down from 42.5% in the previous year, while adjusted gross margin was 54.8%, slightly down from 55.2%[6] - Gross profit for Q1 2025 was $2,457,000, down from $2,843,000 in Q1 2024, resulting in a gross margin of 40.7% compared to 42.5% in the previous year[14] - Adjusted gross profit (Non-GAAP) for Q1 2025 was $3,306,000, a decline from $3,692,000 in Q1 2024, with an adjusted gross margin percentage of 54.8% compared to 55.2%[14] Operating Expenses and Losses - Total operating expenses decreased to $10.4 million from $11.3 million, resulting in a loss from operations of $7.9 million compared to $8.5 million in Q1 2024[6] - The company reported a net loss of $3.9 million for Q1 2025, significantly improved from a net loss of $18.0 million in Q1 2024[13] - The net loss for Q1 2025 was $(3,933,000), significantly improved from a net loss of $(17,994,000) in Q1 2024[16] - EBITDA (Non-GAAP) for Q1 2025 was $(1,972,000), an improvement from $(15,809,000) in Q1 2024[16] - Adjusted EBITDA (Non-GAAP) for Q1 2025 was $(3,271,000), slightly better than $(3,633,000) in Q1 2024[16] Cash and Financing - Cash balance as of March 31, 2025, was $17.4 million, an increase from $13.2 million at the end of 2024[11] - The company raised $15.0 million in gross proceeds through a registered direct offering and amended loan terms to allow full PIK interest, potentially accessing an additional $5 million term loan[2] Strategic Partnerships and Contracts - Elutia signed two new GPO contracts in Q1 2025, bringing total coverage to seven, enhancing market access for EluPro[2] - The partnership with Boston Scientific is expected to accelerate EluPro adoption, with BSC already generating sales in over 50 hospitals[2] Awards and Recognition - EluPro received a 2025 Edison Award for innovation in post-surgical recovery, further validating its market position[2] Other Financial Details - Interest expense for Q1 2025 was $1,085,000, down from $1,313,000 in Q1 2024[16] - Stock-based compensation for Q1 2025 was $1,211,000, compared to $2,197,000 in Q1 2024[16] - Litigation costs for Q1 2025 amounted to $2,572,000, up from $1,785,000 in Q1 2024[16] - The company recorded a gain on revaluation of warrant liability of $(5,187,000) in Q1 2025, compared to a loss of $9,636,000 in Q1 2024[16]