Sanara MedTech Inc. (NASDAQ:SMTI) Q2 2022 Earnings Conference Call August 16, 2022 9:00 AM ET

Company Participants

Callon Nichols - Director of IR

Ron Nixon - Executive Chairman

Zachary Fleming - CEO

Michael McNeil - CFO

Conference Call Participants

Ross Osborn - Cantor Fitzgerald

Ian Cassel - IFCM

Operator

Good morning, ladies and gentlemen, and welcome to the Sanara MedTech Inc. Second Quarter 2022 Earnings and Business Update. At this time, all participants have been placed on a listen-only mode and the floor will be opened for questions and comments after the presentation.

It is now my pleasure to turn the floor over to your host, Mr. Callon Nichols, Investor Relations. Callon, over to you.

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 June 30, 2022. We issued our earnings release yesterday afternoon, and I would like to also highlight that we've 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 the Form 10-Q for the quarter ended June 30 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 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.

Ron Nixon

Thank you, Callon, and good morning, everyone.

In the second quarter of 2022, Sanara generated $9.7 million in revenue, representing a 54% increase from the prior-year period. In addition to it being a record revenue quarter, it was also the first quarter during which the company generated $3 million of revenue in all three months of the quarter. The company had a net loss of $3.3 million in the quarter, Mike will go into further detail. But our loss when compared to the same period of the previous year was impacted by higher SG&A expenses, which increased $3.9 million as well as higher R&D costs, which increased $1 million, primarily related to our merger with Precision Healing and several other new development projects.