Medical device company Baxano Surgical’s (NASDAQ:BAXS) net loss widened to $8.5 million in a second quarter that saw the completion of a merger that combined spinal products companies on both coasts.

Raleigh-based TranS1 announced earlier this year it would acquire California-based Baxano in a stock deal valued at more than $23 million. TranS1 said the merger would create a company with a broader portfolio of spinal products. When the deal closed in May, TranS1 took the Baxano name.

Second quarter revenue for the newly-combined Baxano was $3.9 million, a 12 .1 percent increase compared to the same period in 2012. Revenue from the Baxano products that came to the new company in the acquisition totaled just $800,000 in the quarter.

Excluding one-time items, Baxano reported that its net loss in the second quarter was $6.9 million. One-time items in the quarter included $1.6 million in merger-related expenses and $700,000 in legal expenses related to a federal investigation dating to 2011. As of June 30, Baxano had $19.6 million in cash and cash equivalents.

“This quarter, we created the new Baxano Surgical and now have a suite of spinal devices targeting the minimally invasive spine market, the most significant growth opportunity in spine,” Baxano Surgical President and CEO Ken Reali said in a statement.