Sanara MedTech Inc. Announces Second Quarter 2024 Results

Sanara MedTech Inc., a medical technology company based in Fort Worth, Texas, has released its financial results for the second quarter of 2024. The company, which focuses on developing and commercializing transformative technologies to improve clinical outcomes and reduce healthcare expenditures in the surgical, chronic wound, and skincare markets, reported significant financial and operational achievements for the quarter ended June 30, 2024.

Financial Highlights

Sanara MedTech Inc. reported a record revenue of $20.2 million for the second quarter of 2024, marking the eleventh consecutive quarter of record revenue. This represents a 28% increase from the $15.8 million reported in the same period last year. Despite the revenue growth, the company reported a net loss of $3.5 million, compared to a net loss of $1.9 million in the second quarter of 2023. The higher net loss was primarily due to increased selling, general, and administrative (SG&A) expenses, executive separation costs, acquisition costs, and higher amortization expenses.

Business and Operational Highlights

• The company executed an agreement with a national Group Purchasing Organization (GPO), increasing the number of facilities where its products are contracted or approved to be sold by over 1,000.
• Sanara currently has agreements with over 300 distributors, an increase of 70 since January 2024, and 2,500 potential sellers, an increase of 400 since January 2024.
• During the trailing twelve-month period, the company's products were sold in over 1,100 facilities across 34 states plus the District of Columbia.
• The company's products were contracted or approved to be sold in more than 4,000 hospitals and ambulatory surgery centers as of June 30, 2024.

Strategic Initiatives and Corporate Developments

• Sanara announced the appointments of Jake Waldrop as Chief Operating Officer and Tyler Palmer as Chief Corporate Development and Strategy Officer.
• The company entered into a $55.0 million non-dilutive term loan agreement with CRG Servicing LLC to support its growth initiatives in 2024 and 2025. The company received $15.0 million in gross proceeds at closing and has the option to draw up to $39.8 million in additional funds before June 30, 2025.

Management's Perspective

Ron Nixon, Sanara’s CEO, commented, "The second quarter of 2024 was Sanara’s eleventh consecutive record revenue quarter. Our surgical team continues to generate strong sales driven by the efficacy and value proposition of our products. All of our functional areas including clinical, research and development, customer service, marketing, and finance continue to do an outstanding job supporting our growth strategy. In addition to our financial success this quarter, we also took steps to strengthen our senior management team."

Future Outlook

Sanara MedTech Inc. remains focused on expanding its market presence and enhancing its product offerings. The company aims to leverage its recent strategic initiatives and corporate developments to drive growth in the upcoming quarters. The management's forward-looking statements indicate a positive outlook for the company's financial and operational performance in the near future.

SEC Filing: Sanara MedTech Inc. [ SMTI ] - 8-K - Aug. 12, 2024