Sanara MedTech Inc. (NASDAQ:SMTI) Q1 2022 Earnings Conference Call May 17, 2022 9:00 AM ET

Company Participants

Callon Nichols - Director, Investor Relations

Ron Nixon - Executive Chairman

Zach Fleming - Chief Executive Officer

Mike McNeil - Chief Financial Officer

Conference Call Participants

Ian Cassel - IFCM

Operator

Good morning, ladies and gentlemen, and welcome to the Sanara MedTech Inc. First Quarter 2022 Results and Business Update Conference Call. At this time, all participants have been placed on a listen-only mode and we will open the floor for your questions and comments after the presentation.

It is now my pleasure to turn the floor over to your host, Callon Nichols. 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 March 31st, 2022. We issued our earnings yesterday afternoon and I would like to also highlight that we will post today's deck on our Investor Relations page. This supplemental deck, as well as a copy of our earnings release, the Form 10-Q, and a transcript of this call, will be 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 first quarter of 2022, Sanara generated $7.8 million in revenue, representing a 56% increase from the prior year period. Additionally, we had our first $3 million month -- sales month in March, which was a significant milestone for our sales team, coming at a net loss of $3.2 million in the quarter.

Our net loss was impacted by higher SG&A, which increased $4 million year-over-year in addition to higher R&D costs, which rose slightly less than $100,000. Losses due to the equity method accounting for our investment in Precision Healing also impacted our net loss, which increased by approximately year-over-year.