Akar [Unknown Last Name]'s questions to Xtant Medical Holdings (XTNT) leadership • Q3 2024
Question
Asked for details on a new licensing agreement, the company's confidence in achieving its Q4 revenue guidance, and the key factors for achieving positive cash flow in the upcoming year.
Answer
The licensing deal involves a $1.5 million upfront payment and a minimum of $3.75 million in royalties in 2025, with potential for more. The company is confident in its Q4 guidance ($116M-$120M) due to orders shifting from Q3, a pickup in OEM business, and the new Cortera product launch. Positive cash flow in 2025 is expected to be driven by a more efficient revenue mix (OEM sales with faster DSOs) and better working capital management, not just top-line growth.