Greetings and welcome to the Xtant Medical Second Quarter 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to Matt Steinberg of Lazar FINN Partners. Please go ahead.

Thank you, operator and welcome to Xtant Medical's second quarter 2021 financial results call. Joining me today is Sean Browne, President and Chief Executive Officer and Greg Jensen, Vice President, Finance and Chief Financial Officer. Today's call is being webcast and will be posted on the company's website for playback. During the course of this call, management may make certain forward-looking statements regarding future events and the company's expected future performance. These forward-looking statements reflect Xtant's current perspective on existing trends and information and can be identified by such words as expect, plan, will, may, anticipate, believe, should, intends, and other words with similar meaning. Such forward-looking statements are not guarantees of future performance and involve risk and uncertainties including those noted in the Risk Factor section of the company's annual report on Form 10-K filed with the SEC on February 24th, 2021 and in subsequent SEC reports and press releases. Actual results may differ materially. The company's financial results, press release, and today's discussion include certain non-GAAP financial measures. Please refer to the non-GAAP to GAAP reconciliations, which appear in the tables of our press release and are otherwise available on our website. Note that our Form 8-K filed with our financial results, press release provides a detailed narrative that describes our use of such measures. For the benefit of those of you who may be listening to the replay, this call was held and recorded on Thursday, August 5th at approximately 9 A.M. Eastern Day Light Time. The company declines any obligation to update its forward-looking statements, except as required by applicable law. Now, I'd like to turn the call over to Sean Browne.

Thank you, Matt and good morning to everyone listening. In the second quarter, we achieved solid revenue growth compared to last year as we took advantage of the rebound in elective spinal procedures and the reopening of the broader economy. With elective procedures now trending closer to pre-COVID levels, we believe our platform for growth, including our exceptional market access, our high quality biologics, our niche fixation products, and improve bio production capabilities puts the company in a position to drive this momentum going forward. Even so, we remain cautious given the rapidly evolving pandemic dynamics. As I've said before, the mission of Xtant is what I feel is one of the keys to our success. In my over 30-year career, I have found that those companies who most embody their mission, tend to view most successful and at Xtant, our mission of honoring the gift of donation so that our patients can live as full and complete a life as possible, drives everything we do. It is our mission that helps to keep the team focused when facing challenges like the one faced approximately 18 months ago, when our manufacturing facility was at maximum capacity and product preference it shifted to Xtant's cortical fiber based products. As a result, the team quickly adapted and increased our manufacturing capabilities to meet the demand for cortical fiber based products, which are significantly more difficult to make and benefit from specific donors. Through the tireless work of our production and donor services teams, we successfully met this challenge by increasing our production capacity by almost 50% and expanding the donor base to include the specific donors needed. These changes will allow us to now serve OEM and adjacent market opportunities in addition to meeting the demands of our core customers. What might…

Thank you, Sean and good morning everyone. Total revenue for the second quarter of 2021 was $15 million, an increase of 42.2% compared to $10.5 million in the same quarter of the prior year. The revenue increase was largely due to easing of restrictions associated with the COVID-19 pandemic in our key markets, resulting in an increase in the number of elective procedures. Gross margin for the second quarter of 2021 was 63.5% compared to 62.2% for the same period in 2020. The increase was primarily due to greater economies of scale. Operating expenses in the second quarter of 2021 were $10 million, compared to $6.9 million for the second quarter of 2020. As a percentage of total revenue, operating expenses were 66.8% in the second quarter of 2021 compared to 65.9% in the second quarter of 2020. General and administrative expenses were $4.2 million for the second quarter of 2021, compared to $2.9 million for the same period in 2020. The increase was primarily due to illegal settlement expense and an increase in stock-based compensation expense during the current year period, partially offset by expenses during the prior year period for ERP upgrade related expenses. Sales and marketing expenses were $5.6 million for the three months ended June 30th, 2021, compared to $3.9 million for the same period of 2020. The increase was primarily due to additional sales commissions due to higher revenues versus the comparable period in 2020. Net loss in the second quarter of 2021 totaled $0.7 million or $0.01 per share, compared to a net loss of $2.5 million or $0.19 per share in the comparable 2020 period. Adjusted EBITDA for the second quarter of 2021 was $0.9 million compared $0.3 million for the same period in 2020. As of June 30th, 2021, we had $20.5 million of cash and cash equivalents, $7 million of net accounts receivable, $21.1 million of inventory, and $5 million available under our term credit facility. Now, I will turn a call back to Sean for closing remarks.

Thank you, Greg. To recap, Xtant experienced a strong rebound and solid revenue growth during the second quarter of 2021, which was driven by an increase in the number of elective spinal procedures as the broader economy reopened. We believe the execution of our growth strategy has us well-positioned moving forward as investments in our commercial headcount and distribution network will allow Xtant to grow and diversify our customer platform, while the investments in our manufacturing capabilities should allow us to meet additional demand. As we introduce new products to the market and leverage our adjacent market opportunities, we believe we are taking the necessary steps to enhance Xtant's future growth prospects. Additionally, our improved financial position allows us to invest in our long-term growth initiatives, thereby clearing the way for us to bring our innovative products to the patients in need. We remain cautiously optimistic that the elective procedure volumes will continue to normalize over the second half of the year, which will further allow us to fulfill our mission of honoring the gift of donation. Thank you for joining us today and for your continued support. End of Q&A: Thank you. This does conclude today's call. You may now disconnect your line.