Mr. Trent Northcutt reports

AURORA SPINE CORPORATION ANNOUNCES SECOND QUARTER FY26 FINANCIAL RESULTS

Aurora Spine Corp. has released its financial results for the second quarter of fiscal year 2026 ended June 30, 2026.

All figures are in United States dollars.

Business highlights

• New commercial alliance -- announced strategic commercial alliance with CornerLoc to expand minimally invasive spine and SI joint solutions nationwide;
• Updated commitment -- company signed a new royalty agreement covering the SiLO TFX implant, which includes settlement of arbitration;
• Additional patent issued -- further improvement of company's IP profile with the issuance of a fourth United States patent related to Aurora's proprietary DEXA Technology platform;
• DEXA-C -- sales of DEXA-C cervical implants increased 66.0 per cent in the current quarter as compared with the same period in the previous year. The company is continuing to expand the available sizes of the cervical implants. This growth is expected to continue during the year;
• Apollo Cervical Plates -- with the reintroduction of the Apollo plate the company has seen increased use of the Apollo plate in conjunction with the DEXA-C cervical implants. Expanded use of DEXA-C will drive the growth in sales of the Apollo plates.

Financial results

Revenues: Total revenues for the second quarter of 2026 were $3.66-million, a decrease of 18.7 per cent when compared with $4.50-million in the same quarter one year ago. Revenues for the second quarter were lower due to decreased activity in the pain market, due to lower sales of SI joint products. Sales declines were offset by increased sales of cervical implant sales and biologics. The company rereleased the Apollo plate during the quarter, which will be used with DEXA-C implants going forward.

Gross profit margin: Gross profit margin on total revenues was 60.1 per cent for the second quarter of 2026, compared with 62.2 per cent in Q2 of 2025. Gross margin was lower as the company recorded more sales through distributors and greater spine sales, which carry lower margins as compared with pain products.

Operating expenses: Total operating expenses were $3.03-million for the second quarter of 2026, compared with $2.97-million in the second quarter of 2025. Operating expenses were slightly higher due to increases in consulting fees and professional fees, which were offset by decreases in research and development, marketing fees, and insurance premiums.

EBITDAC: EBITDAC (a non-GAAP (generally accepted accounting principles) figure non-IFRS (international financial reporting standards) measure defined as earnings before interest, tax, depreciation, amortization and stock-based compensation) was ($501,809) for the second quarter of 2026, compared with $141,745 in the second quarter of 2025. The reduction in EBITDAC levels for the second quarter were due to lower sales and gross profit margins and slightly higher expenses.

Net income (loss): Net loss was $(834,763) for the second quarter of 2026, compared with the second quarter of 2025 with a net loss of $(199,000). Basic and diluted net income (loss) per share was (one cent) per share in the second quarter of 2026 and (zero cents) per share for the second quarter of 2025.

Full financial statements can be found on SEDAR+.

Management commentary

"The second-quarter results were disappointing, reflecting the transition and retooling of our internal sales team, and broader awareness of our now-settled dispute with the underlying patent holder for SiLO TFX and increased competition," said Trent Northcutt, chief executive officer of Aurora Spine. "As we indicated following the first quarter, we expected the second quarter to be softer as we worked through this transition however the resultant drop in sales was larger than anticipated. This was reflected in lower sales through our pain market channel, where most of our internal sales team is focused. At the same time, a greater portion of our sales came through our distributor network, which carries lower profit margins.

"Despite the challenges associated with reshaping our internal sales team, we made meaningful progress on the spine side of the business. We saw strong demand for our DEXA-branded products, particularly DEXA-C. In addition, our Apollo plates are back in production and are now shipping alongside our DEXA products. This allows us to provide customers with a more complete product offering while improving our overall profit margin profile. We believe this momentum can continue as surgeons increasingly recognize the value of having implants specifically designed for patients with bone deficiencies.

"Following the end of the second quarter, Aurora entered into a strategic commercial alliance with CornerLoc, a company with innovative SI joint fusion technologies that our sales team can immediately introduce to existing and prospective accounts. At the same time, Aurora's innovative technologies will be made available to the CornerLoc sales team. This reciprocal relationship allows both companies to offer a broader suite of SI joint products while giving surgeons greater flexibility to select the technology that best fits their preferred surgical approach.

"Our products are supported by strong clinical data and thousands of successful installations, demonstrating their safety and effectiveness. I am extremely excited about this partnership and believe it can create significant long-term value for both companies while providing meaningful benefits to surgeons and their patients.

"While we remain in the midst of a sales team transition, we are increasingly excited about Aurora Spine's future. We have a strong and differentiated portfolio of technologies across both the pain and spine markets. This diversified product offering is an important part of the business we are building at Aurora.

"We have made significant updates to our sales organization and believe we now have the right team and structure in place to support future growth. We are confident that we are on the right path and look forward to updating our investors on these initiatives, our new products and the opportunities ahead," concluded Mr. Northcutt.

Chad Clouse, chief financial officer of Aurora Spine, commented: "While the second quarter was impacted by our efforts to strengthen and reposition our internal sales team, we maintained gross profit margins above 60 per cent. We remain highly disciplined in managing expenses and cash outlays, while continuing to improve our collection of accounts receivable. We are focused on maintaining financial discipline while strategically investing in the people, products and initiatives that we believe will create long-term value for Aurora Spine and its shareholders."

Selected statement of financial position information

The attached table summarizes selected key financial data.

Selected quarterly information

The company's functional currency is the United States dollar. The functional currency of the company's U.S. subsidiary Aurora is U.S. dollars.

Second quarter of fiscal year 2026 conference call details

Date and time:  Thursday, Aug. 27, 2026, at 11 a.m. ET/8 a.m. PT

Call-in information:  interested parties can access the conference call by dialling 844-861-5497 or 412-317-5794

Webcast:  interested parties can access the conference call via a live webcast

Replay:   A teleconference replay of the call will be available until Sept. 3, 2026, at 855-669-9658 or 412-317-0088, replay access code 6595785. Additionally, a replay of the webcast will be available on-line for 90 days.

About Aurora Spine Corp.

Aurora Spine is an innovative designer and manufacturer of minimally invasive spinal implants and interventional pain management technologies. Headquartered in Carlsbad, Calif., the company's mission is to improve spinal surgery outcomes through simplified, integrated and cost-effective solutions that advance patient care worldwide.

We seek Safe Harbor.