Shoulder Innovations (SI) Registration Filing summary

Company overview and business model

• Commercial-stage medical technology company focused on transforming the shoulder surgical care market with advanced implant systems for shoulder arthroplasty, preoperative planning technology, and efficient instrument systems.

• Ecosystem includes AI-enabled ProVoyance planning, specialized support, and surgeon-to-surgeon collaboration, targeting improved outcomes and procedural efficiency.

• Initial focus is on the large and growing U.S. shoulder arthroplasty market, with plans for international expansion and adjacent market entry.

Financial performance and metrics

• Net revenue grew 64% year-over-year to $31.6 million in 2024, with a gross margin of 77.0% and net loss of $15.6 million.

• For Q1 2025, net revenue was $10.1 million (up 41% YoY), gross margin 76.9%, and net loss $4.7 million.

• As of March 31, 2025, cash, cash equivalents, and marketable securities totaled $27.6 million; $15.0 million in principal outstanding under the Trinity Loan Agreement.

• Implant systems sold increased from 971 in Q1 2024 to 1,443 in Q1 2025.

Use of proceeds and capital allocation

• Estimated net proceeds of $88.0 million (or $102.0 million if over-allotment is exercised) based on a $20.00/share IPO price.

• Proceeds to be used to scale commercial organization, invest in R&D for implant system innovation, and for working capital and general corporate purposes.

• Management has broad discretion over use of proceeds.