Sanara Medtech, Inc. (NASDAQ:SMTI) Q3 2022 Earnings Conference Call November 15, 2022 9:00 AM ET

Company Participants

Callon Nichols - Director, IR

Ronald Nixon - Executive Chairman

Zachary Fleming - CEO

Michael McNeil - CFO & Corporate Secretary

Conference Call Participants

Christopher Plahm - Tall Pines Capital

Ian Cassel - MicroCapClub

Operator

Good day, ladies and gentlemen, and welcome to the Sanara MedTech Inc. Q3 2022 Earnings and Business Update. [Operator Instructions].

It is now my pleasure to turn the floor over to your host, Callon Nichols, Director of Investor Relations. Sir, the floor is yours.

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 September 30, 2022. We issued our earnings release yesterday afternoon. And I would also like to highlight that today's deck can be found under the SEC filings section of the Investor Relations page of our website. This supplemental deck as well as a copy of the earnings release and the Form 10-Q for the quarter ended September 20, 2022, 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 and our Form 10-Q for the quarter.

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

Ronald Nixon

Thank you, Callon, and good morning, everyone. In the third quarter of 2022, Sanara generated $13 million in revenue, representing a 124% increase from the prior year period. Third quarter revenues included $3 million of Scendia sales. The third quarter of '22 was another record quarter for Sanara as well as for our historical business before we acquired Scendia.

Additionally, it was also the first quarter during which the company generated $4 million of revenue in a single month. The company had a loss before income taxes of $3.2 million for the third quarter 2022. The higher loss in 2022 was due to increased SG&A costs, higher R&D expenses and higher amortization of our acquired intangibles. Mike will go into further detail, but our net loss after tax is $1.5 million for Q3. The lower net loss in 2022 was due to the recognition of a noncash income tax benefit of $1.7 million in Q3 related to purchase accounting of the Scendia acquisition. As previously discussed at the beginning of the third quarter, we completed our acquisition of Scendia. Zach will go into more detail shortly.