Sanara MedTech Inc. (NASDAQ:SMTI) Q1 2023 Earnings Conference Call May 16, 2023 9:00 AM ET

Company Participants

Callon Nichols - Director, Investor Relations

Ron Nixon - Chairman

Zach Fleming - Chief Executive Officer

Mike McNeil - Chief Financial Officer

Conference Call Participants

Ross Osborn - Cantor Fitzgerald

Ian Cassel - IFCM

Operator

Good morning. And welcome to the Sanara MedTech Inc. First Quarter 2023 Results and Business Update Conference Call. [Operator Instructions]

I’d now like to turn the call over to Callon Nichols. Please go ahead.

Callon Nichols

Thank you, and good morning, everyone. I'd like to welcome you to Sanara MedTech's earnings conference call for the quarter ended March 31, 2023. We issued our earnings release yesterday afternoon. And I would like to highlight that we have posted today's deck on the Investor Relations page of our website. This supplemental deck as well as a copy of the earnings release and Form 10-Q for the year quarter ended March 31st, 2023 are available on this page.

We will reference this information in our remarks today. We expect today's prepared comments from Ron Nixon, Executive Chairman; Zach Fleming, Chief Executive Officer; and Mike McNeil, Chief financial Officer, to last approximately 15 minutes to allow time for Q&A.

Certain statements in this conference call and in our press release and in our supplemental deck, include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For more information about the risks and uncertainties involving forward-looking statements and factors that could cause actual results to vary materially from those projected or implied by forward-looking statements, please see our most recent annual report on Form 10-K.

Now I'd like to turn the call over to Ron.

Ron Nixon

Thank you, Callon. And good morning. In Q1 2023 Sanara generated $15.5 million in net revenue representing a 99% increase from the prior year period. The first quarter of 2023 was another record quarter for Sanara and March was the highest sales month in the company's history. We continued to see strong growth and accelerate sales as well as increased sales from the products we licensed from Cook Biotech. Sales at Scendia were flat from Q4 to Q1 due to a stock out of Allocyte product, which we'll discuss us in greater detail later.

The company had a net loss of $1.2 million, compared to a net loss of $3.2 million for the prior year period. Lower loss was driven by higher sales and a change in the fair value of an earnout of our earn out liabilities. On March 16, 2023, we submitted to FDA a 510 (k) premarket notification for our Precision Healing Multispectral Imager. Zach will go into more detail on the imager's capabilities, but we believe that it's a critical component of our value based strategy. Subject to the end of the quarter, the company received 510(k) clearance for BIASURGE’s Advanced Surgical Solution. This product, which was developed by our team at Rochal is expected to commercially launch in 2023.