Exhibit 99.2
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 2.02 Results of Operations and Financial Condition.
On August 12, 2025, Xtant Medical Holdings, Inc. (the “Company”) announced its financial results for the three and six months ended June 30, 2025. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in Item 2.02 of this report (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any registration statement or other document filed by the Company under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly provided by specific reference in such a filing.
To supplement its consolidated financial statements prepared in accordance with United States generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures, such as non-GAAP adjusted EBITDA, which are included in the press release furnished as Exhibit 99.1 to this report. The Company defines non-GAAP adjusted EBITDA as net income (loss) from operations before depreciation and amortization expense, interest expense, and tax benefit (expense), and as further adjusted to add back in or exclude, separation-related expenses, non-cash compensation, divestiture/acquisition-related expenses, acquisition-related fair value adjustments, and unrealized foreign currency translation loss or gain, in each case as applicable.
The Company uses non-GAAP adjusted EBITDA in making operating decisions because it believes this measure provides meaningful supplemental information regarding its core operational performance. Additionally, this measure gives the Company a better understanding of how it should invest in sales and marketing and research and development activities and how it should allocate resources to both ongoing and prospective business initiatives. The Company also uses non-GAAP adjusted EBITDA to help make budgeting and spending decisions, for example, among sales and marketing expenses, general and administrative expenses, and research and development expenses. Additionally, the Company believes its use of non-GAAP adjusted EBITDA facilitates management’s internal comparisons to historical operating results by factoring out potential differences caused by charges not related to its regular, ongoing business, including, without limitation, non-cash charges and certain large and unpredictable charges.
As described above, the Company excludes the effect of the following items from its non-GAAP adjusted EBITDA for the following reasons:
Separation-related expenses. The Company excludes separation-related expenses primarily because such expenses are not reflective of the Company’s ongoing operating results and are not used by management to assess the core profitability of the Company’s business operations. The Company further believes that excluding this item from its non-GAAP results is useful to investors in that it allows for period over-period comparability.
Non-cash compensation. The Company excludes non-cash compensation, which is a non-cash charge related to equity awards granted by the Company. Although non-cash compensation is a recurring charge to the Company’s operations, management has excluded it because it relies on valuations based on future events, such as the market price of the Company’s common stock, that are difficult to predict and are affected by market factors that are largely not within the control of the Company. Thus, management believes that excluding non-cash compensation facilitates comparisons of the Company’s operational performance in different periods, as well as with similarly determined non-GAAP financial measures of comparable companies.
Divestiture/acquisition-related expenses. The Company excludes expenses directly related to the Company’s pending divestiture of its non-core Coflex/CoFix spinal implants and international business and its acquisitions and integration into the Company from non-GAAP adjusted EBITDA primarily because such expenses are not reflective of the Company’s ongoing operating results and are not used by management to assess the core profitability of the Company’s business operations. These expenses include legal and accounting fees and transition related services and are not considered normal, recurring, cash operating expenses necessary to operate the Company’s business. The Company further believes that excluding this item from its non-GAAP results is useful to investors in that it allows for period-over-period comparability.
Acquisition-related fair value adjustments. The Company excludes acquisition-related fair value adjustments from non-GAAP adjusted EBITDA primarily because such adjustments are not reflective of the Company’s ongoing operating results and are not used by management to assess the core profitability of the Company’s business operations. The Company further believes that excluding this item from its non-GAAP results is useful to investors in that it allows for period-over-period comparability.
Unrealized foreign currency translation gain or loss. The Company excludes unrealized foreign currency translation gain or loss, as applicable, from non-GAAP adjusted EBITDA primarily because such gain or loss is not reflective of the Company’s ongoing operating results and is not used by management to assess the core profitability of the Company’s business operations. The Company further believes that excluding this item from its non-GAAP results is useful to investors in that it allows for period-over-period comparability.
Non-GAAP adjusted EBITDA is reconciled to net income (loss), the most directly comparable GAAP measure in the press release.
Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP measures and may be different from non-GAAP financial measures used by other companies. In addition, non-GAAP financial measures are not based on any comprehensive or standard set of accounting rules or principles. Accordingly, the calculation of the Company’s non-GAAP financial measures may differ from the definitions of other companies using the same or similar names, limiting, to some extent, the usefulness of such measures for comparison purposes. Non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with the Company’s financial results as determined in accordance with GAAP. Non-GAAP financial measures should only be used to evaluate the Company’s financial results in conjunction with the corresponding GAAP measures. Accordingly, the Company qualifies its use of non-GAAP financial information in a statement when non-GAAP financial information is presented.
Item 7.01. Regulation FD Disclosure.
Also on August 12, 2025, the Company made available an investor presentation in connection with its announcement of second quarter 2025 financial results (the “Investor Presentation”). The Investor Presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K and the information set forth therein is incorporated herein by reference and constitutes a part of this Item 7.01.
Representatives of the Company intend to use the Investor Presentation in connection with presentations at investor conferences, meetings and in other forums. The Company intends to disclose the information contained in the Investor Presentation, in whole or in part, and with updates and possibly modifications, in connection with presentations to investors, analysts and others and on its corporate website.
The information contained in Item 7.01 of this report and Exhibit 99.2 to this report is summary information that is intended to be considered in the context of the Company’s Securities and Exchange Commission (“SEC”) filings and other public announcements that the Company may make, by press release or otherwise, from time to time. The Company undertakes no duty or obligation to publicly update or revise the information contained in this report and the exhibit hereto, although it may do so from time to time as its management believes is warranted. Any such updating may be made through the filing of other reports or documents with the SEC, through press releases or through other public disclosure. By filing this report and furnishing this information, the Company makes no admission as to the materiality of any information contained in this report, including the exhibit hereto.
The Company is furnishing the information contained in Exhibit 99.2 pursuant to Regulation FD and Item 7.01 of Form 8-K promulgated by the SEC. This information shall not be deemed to be “filed” with the SEC for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any registration statement or other document filed by the Company under the Securities Act or the Exchange Act, except as may be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. |
Description | |
| 99.1 |
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| 99.2 |
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Investor Presentation of Xtant Medical Holdings, Inc. (August 2025) (furnished herewith) |
| 104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| XTANT MEDICAL HOLDINGS, INC. | ||
| By: | /s/ Scott Neils | |
| Scott Neils | ||
| Chief Financial Officer | ||
Date: August 12, 2025
Exhibit 99.1
Xtant Medical Reports Second Quarter 2025 Financial Results
Total Revenue of $35.4 Million Increased 18% Year-over-Year
Delivers Positive Net Income, Adjusted EBITDA and Operating Cash Flow
Raises FY25 Revenue Guidance to $131-$135 Million, Representing Growth of 11%-15% over FY24
BELGRADE, Mont., August 12, 2025 — Xtant Medical Holdings, Inc. (NYSE American: XTNT), a global medical technology company focused on surgical solutions for the treatment of spinal, orthopedic, and woundcare disorders, today reported financial and operating results for the second quarter ended June 30, 2025.
Second Quarter 2025 Financial Highlights
| ● | Revenue of $35.4 million, up 18%, compared to the prior year quarter | |
| ● | Gross margin of 68.6% compared to 62.1% for the prior year quarter | |
| ● | Net income of $3.6 million compared to a net loss of $3.9 million in the prior year quarter | |
| ● | Adjusted EBITDA of $6.9 million compared to Adjusted EBITDA loss of $0.6 million in the prior year quarter | |
| ● | Cash generated from operations of $1.2 million compared to cash used in operations of $5.1 million in the prior year quarter | |
| ● | Raised FY25 revenue guidance to $131-$135 million, representing growth of 11%-15%, excluding the impact of the pending sale of certain assets to Companion Spine |
Recent Business Highlights
| ● | Announced definitive agreements to sell its non-core Coflex® and CoFix® spinal implants and all OUS businesses to Companion Spine for total proceeds of approximately $19.2 million | |
| ● | Launched OsteoFactor Pro™, a naturally occurring cocktail of allogeneic growth factors engineered and designed to improve bone healing and support surgical success across orthopedic and spine procedures | |
| ● | Launched Trivium™, a premium, next-generation demineralized bone matrix (DBM) allograft designed to elevate the standard of care in bone grafting procedures |
Sean Browne, President and CEO of Xtant Medical, stated, “We delivered strong financial and operating results during the second quarter, reflecting steps taken to enhance our focus on our core biologics business while also prudently managing expenses across the organization and driving operating leverage, consistent profitability, and cash flow. Notably, with the recent launch of our next-generation growth factor, OsteoFactor Pro™, we are now the only vertically integrated company to develop and manufacture solutions across all major orthobiologic categories.”
Mr. Browne continued, “Our recently announced agreements to sell certain non-core spinal implant and OUS businesses to Companion Spine represent another step toward the realization of our strategic vision for the company. Once completed, this transaction will allow us to significantly strengthen our balance sheet and further support the ongoing development of our broad pipeline of advanced biologics. I believe our tireless commitment to innovation and quality uniquely positions Xtant to address the needs of surgeons and patients alike while simultaneously creating enduring value for our shareholders.”
Second Quarter 2025 Financial Results
Revenue grew 18% to $35.4 million, compared to $29.9 million for the same quarter in 2024. The increase is due primarily to increased orthobiologics sales and licensing revenue.
Gross margin for the second quarter of 2025 was 68.6%, compared to 62.1% for the same period in 2024. The increase is primarily attributable to the impact of royalty revenue in the current year period, as well as lower product costs and greater scale.
Operating expenses for the second quarter of 2025 totaled $19.7 million, compared to $21.5 million for the second quarter of 2024. The reduction in operating expenses is primarily attributable to reduced compensation and commission expenses, which were partially offset by an increase in professional fees related to sales and marketing.
Net income totaled $3.6 million, or $0.02 per share on a fully diluted basis, compared to a net loss of $3.9 million, or $(0.03) per share, in the second quarter of 2024.
Non-GAAP adjusted EBITDA for the second quarter of 2025 totaled $6.9 million, compared to an Adjusted EBITDA loss of $569,000 for the same period in 2024. Beginning in the fourth quarter of 2024, phasing of the bargain purchase gain on sell through of inventory acquired as part of the purchase of Surgalign Holdings’ hardware and biologics business is no longer included in acquisition-related fair value adjustments in the non-GAAP adjusted EBITDA calculation and prior period calculations as presented herein have been recast to conform to the current presentation and calculation.
The Company defines adjusted EBITDA as net income/loss from operations before depreciation, amortization and interest expense and provision for income tax/benefit, and as further adjusted to add back in or exclude, as applicable, separation-related expenses, non-cash compensation, disposition/acquisition-related expense, acquisition-related fair value adjustments and unrealized foreign currency translation gain or loss. A calculation and reconciliation of adjusted EBITDA to net loss can be found in the attached financial tables.
As of June 30, 2025, the Company had $7.0 million of cash and cash equivalents compared to $6.2 million as of December 31, 2024.
2025 Financial Guidance
Xtant is raising its full-year 2025 revenue guidance to a range of $131 million to $135 million, which represents approximately 11% to 15% growth over the Company’s 2024 revenue. This compares to its prior revenue guidance of $127 million to $131 million. Xtant intends to update its outlook following the completion of the sale of its non-core Coflex® and CoFix® spinal implants and all OUS businesses to Companion Spine.
Conference Call
Xtant Medical will host a webcast and conference call to discuss its second quarter 2025 financial and operating results at 8:30 am ET today, August 12, 2025.
To access the webcast, visit Webcast Link: https://www.webcaster4.com/Webcast/Page/3039/52698
To access the conference call, dial 877-545-0523 (US) or 973-528-0016 (International) and reference Participant Access Code 482755.
A replay of the call will be available on the Investor section of the Company’s website at www.xtantmedical.com.
About Xtant Medical Holdings, Inc.
Xtant Medical’s mission of honoring the gift of donation so that our patients can live as full and complete a life as possible, is the driving force behind our company. Xtant Medical Holdings, Inc. (www.xtantmedical.com) is a global medical technology company focused on the design, development, and commercialization of a comprehensive portfolio of orthobiologics serving the chronic and surgical wound care and sports medicine markets, as well as spinal implant systems. Xtant people are dedicated and talented, operating with the highest integrity to serve our customers.
The symbols ™ and ® denote trademarks and registered trademarks of Xtant Medical Holdings, Inc. or its affiliates, registered as indicated in the United States, and in other countries. All other trademarks and trade names referred to in this release are the property of their respective owners.
Non-GAAP Financial Measures
To supplement the Company’s consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses certain non-GAAP financial measures in this release, including adjusted EBITDA. Reconciliations of the non-GAAP financial measures used in this release to the most comparable GAAP measures for the respective periods can be found in tables later in this release. The Company’s management believes that the presentation of these measures provides useful information to investors. These measures may assist investors in evaluating the Company’s operations, period over period. Management uses the non-GAAP measures in this release internally for evaluation of the performance of the business, including the allocation of resources. Investors should consider non-GAAP financial measures only as a supplement to, not as a substitute for or as superior to, measures of financial performance prepared in accordance with GAAP.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “intends,” ‘‘expects,’’ ‘‘anticipates,’’ ‘‘plans,’’ ‘‘believes,’’ ‘‘estimates,’’ “continue,” “future,” ‘‘will,’’ “potential,” “going forward,” “guidance,” similar expressions or the negative thereof, and the use of future dates. Forward-looking statements in this release include the Company’s full year 2025 revenue guidance and the anticipated closing of the sale of the Company’s Coflex® and CoFix® spinal implants and all OUS businesses to Companion Spine and proceeds therefrom. The Company cautions that its forward-looking statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others: the possibility that the sale of the Company’s Coflex and CoFix products and international business are not completed or, if completed, that the anticipated benefits of the transactions are not realized when expected or at all; the possibility that the transactions may be more expensive to complete than anticipated; diversion of management’s attention from ongoing business operations and opportunities; the occurrence of any event, change or other circumstances that could give rise to the right of the parties to terminate either or both transactions; exposure to potential litigation and adverse tax consequences; the Company’s future operating results and financial performance; its ability to increase or maintain revenue; the Company’s ability to become operationally self-sustaining and less reliant on third-party manufacturers and suppliers; risks associated with its acquisitions and the integration of those businesses; anticipated shortages of stem cells which will adversely affect future revenues; the ability to implement successfully its future growth initiatives and risks associated therewith; possible future impairment charges to long-lived assets and goodwill and write-downs of excess inventory; the ability to remain competitive; the ability to innovate, develop and introduce new products and the success of those products; the ability to engage and retain new and existing independent distributors and agents and qualified personnel and the Company’s dependence on key independent agents for a significant portion of its revenue; the effect of labor and hospital staffing shortages on the Company’s business, operating results and financial condition, especially when they affect key markets; the effect of inflation, increased interest rates and other recessionary factors and supply chain disruptions; the effect of product sales mix changes on the Company’s financial results; government and third-party coverage and reimbursement for Company products; the ability to obtain and maintain regulatory approvals and comply with government regulations; the effect of product liability claims and other litigation to which the Company may be subject; the effect of product recalls and defects; the ability to license certain of the Company’s intellectual property on commercially reasonable terms and to maintain any such licenses; the ability to obtain and protect Company intellectual property and proprietary rights and operate without infringing the rights of others; risks associated with the Company’s clinical trials; international risks; the ability to service Company debt, comply with its debt covenants and access additional indebtedness; the ability to maintain sufficient liquidity to fund its operations and obtain financing on favorable terms or at all; and other factors. Additional risk factors are contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission (SEC) on March 6, 2025 and subsequent SEC reports, including its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2025 to be filed with the SEC on August 12, 2025. Investors are encouraged to read the Company’s filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties. The Company undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this cautionary statement.
Investor Relations Contact:
Kevin Gardner
LifeSci Advisors
-OR-
Rob Windsor
LifeSci Advisors
— Tables Follow –
XTANT MEDICAL HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except number of shares and par value)
As of June 30, 2025 | As of December 31, 2024 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 6,923 | $ | 6,199 | ||||
| Restricted cash | 114 | 22 | ||||||
| Trade accounts receivable, net of allowance for credit losses and doubtful accounts of $1,795 and $1,437, respectively | 26,951 | 20,660 | ||||||
| Inventories | 40,135 | 38,634 | ||||||
| Prepaid and other current assets | 1,466 | 1,601 | ||||||
| Total current assets | 75,589 | 67,116 | ||||||
| Property and equipment, net | 10,447 | 10,131 | ||||||
| Right-of-use asset, net | 2,634 | 829 | ||||||
| Goodwill | 7,302 | 7,302 | ||||||
| Intangible assets, net | 7,492 | 8,356 | ||||||
| Other assets | 15 | 103 | ||||||
| Total Assets | $ | 103,479 | $ | 93,837 | ||||
| LIABILITIES & STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 7,223 | $ | 7,918 | ||||
| Accrued liabilities | 10,626 | 7,771 | ||||||
| Current portion of lease liability | 693 | 703 | ||||||
| Current portion of finance lease obligations | 52 | 69 | ||||||
| Line of credit | 12,006 | 12,120 | ||||||
| Total current liabilities | 30,600 | 28,581 | ||||||
| Long-term Liabilities: | ||||||||
| Lease liability, less current portion | 2,015 | 166 | ||||||
| Financing lease obligations, less current portion | 30 | 47 | ||||||
| Long-term debt, plus premium and less issuance costs | 22,278 | 22,038 | ||||||
| Other liabilities | 54 | 42 | ||||||
| Total Liabilities | 54,977 | 50,874 | ||||||
| Stockholders’ Equity | ||||||||
| Preferred stock, $0.000001 par value; 10,000,000 shares authorized; no shares issued and outstanding | - | - | ||||||
| Common stock, $0.000001 par value; 300,000,000 shares authorized; 139,315,722 shares issued and outstanding as of June 30, 2025 and 139,045,664 shares issued and outstanding as of December 31, 2024 | - | - | ||||||
| Additional paid-in capital | 304,201 | 302,738 | ||||||
| Accumulated other comprehensive income (loss) | 152 | (316 | ) | |||||
| Accumulated deficit | (255,851 | ) | (259,459 | ) | ||||
| Total Stockholders’ Equity | 48,502 | 42,963 | ||||||
| Total Liabilities & Stockholders’ Equity | $ | 103,479 | $ | 93,837 | ||||
XTANT MEDICAL HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except number of shares and per share amounts)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue | ||||||||||||||||
| Product revenue | $ | 30,436 | $ | 29,943 | $ | 59,720 | $ | 57,816 | ||||||||
| License revenue | 4,975 | - | 8,595 | - | ||||||||||||
| Total Revenue | 35,411 | 29,943 | 68,315 | 57,816 | ||||||||||||
| Cost of Sales | 11,127 | 11,361 | 23,788 | 21,932 | ||||||||||||
| Gross Profit | 24,284 | 18,582 | 44,527 | 35,884 | ||||||||||||
| Gross Profit % | 68.6 | % | 62.1 | % | 65.2 | % | 62.1 | % | ||||||||
| Operating Expenses | ||||||||||||||||
| General and administrative | 7,478 | 7,713 | 15,011 | 15,498 | ||||||||||||
| Sales and marketing | 11,616 | 13,179 | 22,820 | 25,639 | ||||||||||||
| Research and development | 566 | 636 | 1,009 | 1,163 | ||||||||||||
| Total Operating Expenses | 19,660 | 21,528 | 38,840 | 42,300 | ||||||||||||
| Income (Loss) from Operations | 4,624 | (2,946 | ) | 5,687 | (6,416 | ) | ||||||||||
| Other Expense | ||||||||||||||||
| Interest expense | (1,004 | ) | (992 | ) | (2,049 | ) | (1,827 | ) | ||||||||
| Unrealized foreign currency translation gain | 178 | 118 | 202 | 79 | ||||||||||||
| Other income (expense) | 7 | (5 | ) | (2 | ) | 7 | ||||||||||
| Total Other Expense | (819 | ) | (879 | ) | (1,849 | ) | (1,741 | ) | ||||||||
| Net Income (Loss) from Operations Before Provision for Income Taxes | 3,805 | (3,825 | ) | 3,838 | (8,157 | ) | ||||||||||
| Provision for Income Taxes | ||||||||||||||||
| Current and Deferred | (255 | ) | (36 | ) | (230 | ) | (104 | ) | ||||||||
| Net Income (Loss) | $ | 3,550 | $ | (3,861 | ) | $ | 3,608 | $ | (8,261 | ) | ||||||
| Net Income (Loss) Per Share: | ||||||||||||||||
| Basic | $ | 0.03 | $ | (0.03 | ) | $ | 0.03 | $ | (0.06 | ) | ||||||
| Dilutive | $ | 0.02 | $ | (0.03 | ) | $ | 0.02 | $ | (0.06 | ) | ||||||
| Shares used in the computation: | ||||||||||||||||
| Basic | 139,310,589 | 130,269,710 | 139,190,378 | 130,291,796 | ||||||||||||
| Dilutive | 148,574,242 | 130,269,710 | 148,339,423 | 130,291,796 | ||||||||||||
XTANT MEDICAL HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
| Six
Months Ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| Operating activities: | ||||||||
| Net income (loss) | $ | 3,608 | $ | (8,261 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 2,243 | 2,003 | ||||||
| Gain on sale of fixed assets | (49 | ) | (142 | ) | ||||
| Non-cash interest | 289 | 218 | ||||||
| Stock-based compensation | 1,524 | 2,138 | ||||||
| Provision for reserve on accounts receivable | 395 | 178 | ||||||
| Provision for excess and obsolete inventory | 490 | 388 | ||||||
| Other | 46 | 1 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (6,873 | ) | (688 | ) | ||||
| Inventories | (1,349 | ) | (4,130 | ) | ||||
| Prepaid and other assets | 347 | (469 | ) | |||||
| Accounts payable | (880 | ) | (15 | ) | ||||
| Accrued liabilities | 2,763 | (2,064 | ) | |||||
| Net cash provided by (used in) operating activities | 2,554 | (10,843 | ) | |||||
| Investing activities: | ||||||||
| Purchases of property and equipment | (1,557 | ) | (1,337 | ) | ||||
| Proceeds from sale of fixed assets | 97 | 183 | ||||||
| Net cash used in investing activities | (1,460 | ) | (1,154 | ) | ||||
| Financing activities: | ||||||||
| Payments on financing leases | (34 | ) | (32 | ) | ||||
| Borrowings on line of credit | 51,812 | 59,565 | ||||||
| Repayments on line of credit | (51,925 | ) | (52,288 | ) | ||||
| Proceeds from issuance of long term debt | - | 5,000 | ||||||
| Debt issuance costs | (49 | ) | (615 | ) | ||||
| Payment of taxes from withholding of common stock on settlement of restricted stock units | (61 | ) | (17 | ) | ||||
| Net cash (used in) provided by financing activities | (257 | ) | 11,613 | |||||
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | (21 | ) | (61 | ) | ||||
| Net change in cash and cash equivalents and restricted cash | 816 | (445 | ) | |||||
| Cash and cash equivalents and restricted cash at beginning of year | 6,221 | 5,923 | ||||||
| Cash and cash equivalents and restricted cash at end of year | $ | 7,037 | $ | 5,478 | ||||
| Reconciliation of cash and cash equivalents and restricted cash reported in the consolidated balance sheets | ||||||||
| Cash and cash equivalents | 6,923 | 5,379 | ||||||
| Restricted cash | 114 | 99 | ||||||
| Total cash and restricted cash reported in the consolidated balance sheets | $ | 7,037 | $ | 5,478 | ||||
XTANT MEDICAL HOLDINGS, INC.
CALCULATION OF NON-GAAP CONSOLIDATED EBITDA AND ADJUSTED EBITDA
(In thousands)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net Income (Loss) | $ | 3,550 | $ | (3,861 | ) | $ | 3,608 | $ | (8,261 | ) | ||||||
| Depreciation and amortization | 1,169 | 998 | 2,243 | 2,003 | ||||||||||||
| Interest expense | 1,004 | 992 | 2,049 | 1,827 | ||||||||||||
| Tax (benefit) expense | 255 | 36 | 230 | 104 | ||||||||||||
| Non-GAAP EBITDA | 5,978 | (1,835 | ) | 8,130 | (4,327 | ) | ||||||||||
| Non-GAAP EBITDA/Total revenue | 16.9 | % | -6.1 | % | 11.9 | % | -7.5 | % | ||||||||
| NON-GAAP ADJUSTED EBITDA CALCULATION | ||||||||||||||||
| Separation related expenses | (17 | ) | - | 23 | - | |||||||||||
| Non-cash compensation | 766 | 1,228 | 1,524 | 2,138 | ||||||||||||
| Divestiture/acquisition-related expense | 295 | - | 295 | 338 | ||||||||||||
| Acquisition-related fair value adjustments (1) | 60 | 129 | 171 | 384 | ||||||||||||
| Unrealized foreign currency translation (gain) loss | (178 | ) | (118 | ) | (202 | ) | (79 | ) | ||||||||
| Non-GAAP Adjusted EBITDA | $ | 6,904 | $ | (596 | ) | $ | 9,941 | $ | (1,546 | ) | ||||||
| Non-GAAP Adjusted EBITDA/Total revenue | 22.7 | % | -2.0 | % | 16.6 | % | -2.7 | % | ||||||||
(1) Beginning in the fourth quarter of 2024, phasing of the bargain purchase gain on sell through of inventory acquired as part of the purchase of Surgalign Holdings’ hardware and biologics business is no longer included in acquisition-related fair value adjustments in the non-GAAP adjusted EBITDA calculation and prior period calculations as presented herein have been recast to conform to the current presentation and calculation. The related effect on adjusted EBITDA was a reduction of $1.1 million and $2.1 million for the three and six months ended June 30, 2024 to arrive at recast amounts.
Exhibit 99.2