Shoulder Innovations (SI) Registration Filing summary

Company overview and business model

• Commercial-stage medical technology company focused on transforming shoulder surgical care, offering advanced implant systems for shoulder arthroplasty and related enabling technologies.

• Ecosystem includes preoperative planning (ProVoyance), efficient instrument systems, specialized support, and surgeon-to-surgeon collaboration.

• Products address limitations of traditional implants, aiming for improved outcomes, procedural simplicity, and efficiency, especially in ambulatory surgery centers (ASCs).

• U.S.-centric commercial focus with plans for international expansion; leverages a dedicated commercial leadership team and independent distributor network.

• Pipeline includes new humeral stem options, fracture/revision solutions, and implants for metal-sensitive patients.

Financial performance and metrics

• Net revenue grew 64% year-over-year to $31.6M in 2024; $19.3M in 2023.

• Gross margin was 77.0% in 2024 (down from 79.2% in 2023); net loss increased to $15.6M in 2024 from $12.7M in 2023.

• Q1 2025 net revenue was $10.1M (up 41% from Q1 2024); gross margin stable at 76.9%.

• As of March 31, 2025, cash, cash equivalents, and marketable securities totaled $27.6M; $15.0M in principal outstanding under a term loan.

• Adjusted EBITDA loss was $11.4M in 2024 and $3.5M in Q1 2025.

Use of proceeds and capital allocation

• Net proceeds will be used to scale the commercial organization, invest in R&D for implant innovation, and for working capital/general corporate purposes.

• May use a portion for strategic acquisitions, though no current commitments.

• Management has broad discretion over use of proceeds.