Conference call Transcript:
WARNING: I speed typed this then interpreted what I wrote, thus may not be full or factual.
thank you doug and good morning welcome to the conference call. I am Sonny Bal, chairman and CEO of AMDA. the purpose of this conf. call is to discuss sale of our retail spinal division
thank you investors and employees. remarkable technology silicon nitride. in terms of this call to discuss 1. road map 2.rational for sale 3. overview of finance. a transcript record will be posted of this call. In terms of history silicon nitride is used. Common in space, aircraft weapons systems.
amda was founded in 1996 by aaron hoffman and phd ceramic scientist ashok and focused on femoral heads silicon nitride formulation.
prior to amedica australians in 1980's used silicon nitride and noticed bone healing based on chemical properties. They made primitive lumbar spine implants and placed them into patients.
to their credit 5 10 15 patient followups showed excellent results. did not clear hip ball
but spine 2007 2009 spine raised capital. since that time 33000 silicon nitride implants 8-10 year follow up with minor issues. pedicle screws. we take pride in worldwide standards
personal history: I personally invested in at least 3 financing rounds. no doubt in mind silicon nitride is a unique material. 2012 i became a member of board of directors 2013 I became ceo. Something job I need absolute faith to give up my surgical practice proffessor.
2015 2016 we restructure and payed debt and fired employees. proved material works. this data is peer reviewed honest and envied. 15 million gross proceeds S1 we mentione we where looking to sell our assets
we upgraded metal met with surgeon experience. challenge was increase spine sales. accepted respected science. have no doubts in amda nothing to prove they find something to sell.
anemic sales neck pain 4 screw 1 spacer 1 bio mat 1 cerv plate =7 items. At best we have 1 out of 7. like a tire store that sells 1 tire. only way to sell our products is high commisions. any other Company offering a full line we are out. our sales reps cant be in the room. we have to hand our product to competition while we stand outside.
future: invested in obsolete metals since 2015. reposition as oem. We where really 2 companies. 1 was silicon nitrides enormous potential and 2nd spine sales.
considering our options we consulted for options. considered: keep going. raise $ and invest in sales and shut down research and development to focus on spine retail. Reality is spine sales lose money and need $. option: buy a small spine company well most companies lose money have no differentiating product and most dont manufacture and have legacy surgeons. we tried other options that where not worth the time or effort.
we looked at the option to sell the entire Company. All where not interested in both Spinal sales and manufacturing. Only one or the other.
we examined options and decided to sell to CTL and keep biomaterial business. What is left? alot. R&D.We own fda for silicon nitride and material patents and are the only manufacture of sini medical. Establish ceramics dental and universities, our revenue modeling is realistic. improve properties of sini. we are left with best in class we can execute go forward markets spine expand portfolio with ctl coatings. dental.
leverage antibacterial. These claims are proven. no material claims this. Brazing. commercialize that. only focus Silicon nitride. no more metals. antiviral.
continue research sini? yes priority. New products in hands of spine surgeons. new products in hands of surgical engineers, 100 patents per person we have access to at ctl. non spine silicon nitride is far along. drive poduct develpment. pure R&D continued partner financed. we have sini minds locked up.
why sell spine? favorable margins. too much commissions we lose $ to win. too much competition.
this industry demands new products. we dont have expandables. CTL launches new products. we are not strong in spine CTL is better. invest our limited resources into other products. develop products. hire consultants and engineers.
we estimate 45% margin for dental maxiofacial. 30 36% on retail model. I would rather have a fixed proportion of a bigger slice of pie than a shrinking portion of a larger pie. Why CTL? credible, honest integrity. We narrowed down choices. we share a commitment and passion for products. CTL did their DD and followed our companies science for 5 yrs.CTL has a clear goal on how to leverage this and has a full range of products(tire store 1 tire).
CTl offers an ideal product test bed for are studies. seasoned management, proven sales growth, are agreeable to the big picture and will allow sub license. we looked at other companies lack of capital, no growth. no visiton. no in house manufacturing which would shut down OUS. incompatible sales tactics incompatible values. 10 yr manufacturing agreement for CTL only.
the engine in the back is AMDA.A mutual model we`re both good for each other. I took 4 flights and talkd to 2 ceos. Surgeons love it we invest in surgeon relations. invest in research and development of spine related to silicon nitride. new designs CTL. Why 8.5 million? why not more money? valuation was independent that was the number. We needed more money other options had no clean exit. no doors are closed superior offers we will consider.
even after deal both CTL and Amedica are for sale. we always look for options. what about 1.5? blablablabla very conservative. why raise 15 to sell to ctl? AMDA wants to be OEM comapny. spinal kinetics looking for partner? our belief spine sales if we sold more we lose more we suck at that. R&D new formulations. Focus down not lose sight of true value.
Sales dont attract interest. $ from these proceeds will be used to pay down debt carry company forward. only after analyst consultants who agreed. Why hurt investor and reward shorts? We dont have control of what happends on NASDAQ not want hurt including myself.
existing debt. hardest time was raising capital in 2014 with no data . since then quality improved debt down. forward w CTL we can get better financing. NO debt today. more $ then mkt cap. reduce cash outflow by 50% 2014 of goal. most important is to help CTL sell inventory. Get to steady state of OEM revenue via CTL. Increase sales. Staffing? already where fired. Some go to CTL following close 20 employess. previously 100 in 2014
2019 delisting? focus on what we do. Market and investor will realize value. Conservative projection. Revenue doesn't improve. Nothing more. No dental in our projections.
conservative revenue forecasts. since 2014 we executed on all debt. we are debt free. tech is proven. respected by global industry. More clinical data. only 2 goals to drive ctl sales and deliver on additional revenue sources. our new name: sintex.
the name is a play on chemical formula, Most beloved. The word tech represents breadth. truly captures as a name what we are now. surgeon customers telling me u got science. u the future. u need to sell and find a selling partner. excellent reception to deal by surgeons.
Surgeons:
"excited product will improve i always believe in science"
"New direction may be best route"
"Long term user here. deal already shows consciencious, hidden jewel in a me too technology market"
"Most surgeons are starving lets make a deal."
"all playing not to lose not to win"
Onsolicited
Sums it up we are trying to innovate and win it. continue to gain true believer and offer new solutions. we came a long way since 2014 and best is ahead. thanks for support.
AI
