UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________to __________ Commission file number 001-35887 MIMEDX GROUP, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...

[Financial and Operating Highlights](index=1&type=section&id=Financial%20and%20Operating%20Highlights) MIMEDX achieved strong Q4 and full-year 2023 performance, with significant net sales growth and a substantial profitability turnaround [Q4 and Full Year 2023 Performance Summary](index=1&type=section&id=Q4%20and%20Full%20Year%202023%20Performance%20Summary) MIMEDX reported strong Q4 and full-year 2023 performance, with net sales increasing 17% and 20% and a significant profitability turnaround Q4 & Full Year 2023 Key Financial Metrics (in millions) | Metric | Q4 2023 | Q4 YoY Growth | Full Year 2023 | FY YoY Growth | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $87 | 17% | $321 | 20% | | GAAP Net Income | $53 | N/A | $58 | N/A | | Adjusted EBITDA | $21 | 189.9% | $58.5 | 733.2% | | Adjusted EBITDA Margin | 24% | - | 18.2% | - | - Q4 2023 Net Income of **$53 million** included a significant one-time, non-cash tax benefit of **$40 million**[1](index=1&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted 2023's transformative growth and profitability, projecting low double-digit net sales growth and over 20% Adjusted EBITDA margin for 2024 - Full-year 2023 top-line growth of **20%** exceeded expectations and provides strong momentum for the future[3](index=3&type=chunk) - The company has successfully unlocked robust cash flow generation that is expected to improve with scale[3](index=3&type=chunk) - The outlook for 2024 includes low double-digit net sales percentage growth and an Adjusted EBITDA margin exceeding **20%**[3](index=3&type=chunk) [Key Corporate Developments](index=1&type=section&id=Key%20Corporate%20Developments) MIMEDX launched EPIEFFECT®, a new Advanced Wound Care product, and completed significant financial restructuring and debt refinancing - Launched EPIEFFECT®, a new addition to the Advanced Wound Care product portfolio[4](index=4&type=chunk) - Announced the conversion of all outstanding Series B convertible preferred stock to common stock[4](index=4&type=chunk) - Completed a debt refinancing with new senior secured credit facilities in January 2024 and subsequently repaid a **$30 million** revolving credit facility with cash on hand[4](index=4&type=chunk) [Detailed Financial Results Discussion (Q4 & FY 2023)](index=2&type=section&id=Detailed%20Financial%20Results%20Discussion%20(Q4%20%26%20FY%202023)) This section details MIMEDX's Q4 and full-year 2023 financial performance, analyzing net sales, gross profit, operating expenses, net income, and cash position [Net Sales](index=2&type=section&id=Net%20Sales) Net sales grew **17%** in Q4 2023 to **$87 million** and **20%** for the full year to **$321 million**, driven by strong performance across Wound and Surgical markets Net Sales Performance (in millions) | Period | 2023 Net Sales | 2022 Net Sales | YoY Growth | | :--- | :--- | :--- | :--- | | Q4 | $87 | $74 | 17% | | Full Year | $321 | $268 | 20% | [Gross Profit and Margin](index=2&type=section&id=Gross%20Profit%20and%20Margin) Gross margin improved in Q4 2023 to **84.1%** and for the full year to **83.0%**, driven by a favorable product mix and enhanced production yields Gross Profit and Margin Analysis (in millions) | Period | 2023 Gross Profit | 2023 Gross Margin | 2022 Gross Margin | | :--- | :--- | :--- | :--- | | Q4 | $73 | 84.1% | 80.7% | | Full Year | $267 | 83.0% | 82.0% | [Operating Expenses](index=3&type=section&id=Operating%20Expenses) Full-year 2023 operating expenses saw modest SG&A growth, flat R&D, and a significant **58.3%** reduction in investigation-related expenses Full Year Operating Expense Comparison (in millions) | Expense Category | FY 2023 | FY 2022 | Change | | :--- | :--- | :--- | :--- | | SG&A | $211 | $209 | +1.1% | | Research & Development | $13 | $13 | 0% | | Investigation, Restatement & Related | $5 | $12 | -58.3% | [Net Income](index=3&type=section&id=Net%20Income) The company achieved a significant shift to profitability, with full-year 2023 net income of **$67 million**, largely due to a **$37 million** non-cash income tax benefit Net Income (Loss) from Continuing Operations (in millions) | Period | 2023 | 2022 | | :--- | :--- | :--- | | Q4 | $51 | $2 | | Full Year | $67 | ($20) | - The positive results in 2023 were significantly impacted by a **$37 million** non-cash income tax provision benefit related to the reversal of a valuation allowance[14](index=14&type=chunk) [Cash Position](index=3&type=section&id=Cash%20Position) Cash and cash equivalents increased to **$82 million** as of December 31, 2023, up from **$66 million** in 2022, driven by higher sales collections and lower operating expenses Cash and Cash Equivalents (in millions) | Date | Amount | | :--- | :--- | | Dec 31, 2023 | $82 | | Sep 30, 2023 | $81 | | Dec 31, 2022 | $66 | [2024 Financial Outlook](index=4&type=section&id=2024%20Financial%20Outlook) This section outlines MIMEDX's financial projections for 2024, targeting low double-digit net sales growth and an Adjusted EBITDA margin exceeding 20% [Financial Goals](index=4&type=section&id=Financial%20Goals) MIMEDX targets low double-digit net sales growth and an Adjusted EBITDA margin above **20%** for full-year 2024, driven by growth in Wound and Surgical markets - The company's annual goal is to deliver net sales percentage growth in the low double-digits[17](index=17&type=chunk) - For full year 2024, the company expects Adjusted EBITDA as a percentage of net sales to be above **20%**[19](index=19&type=chunk) - Growth in 2024 is expected to be driven by the private office setting (EPIEFFECT launch) and various Surgical use cases (AMNIOEFFECT)[18](index=18&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents MIMEDX's condensed consolidated balance sheets, statements of operations, and cash flows for the reported periods [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet strengthened significantly as of December 31, 2023, with total assets growing to **$239.0 million** and stockholders' equity turning positive Key Balance Sheet Items (in thousands) | Account | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $82,000 | $65,950 | | Total current assets | $164,261 | $134,198 | | Total assets | $239,047 | $171,430 | | Total liabilities | $96,330 | $96,924 | | Total stockholders' equity (deficit) | $142,717 | $(17,988) | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The 2023 income statement reflects significant operational improvement, with gross profit increasing to **$266.8 million** and a swing to operating income and net income Full Year Income Statement Highlights (in thousands) | Account | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net sales | $321,477 | $267,841 | | Gross profit | $266,843 | $219,525 | | Operating income (loss) | $37,116 | $(14,727) | | Net income (loss) | $58,228 | $(30,197) | | Diluted net income (loss) per share | $0.37 | $(0.33) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company demonstrated a strong turnaround in cash generation in 2023, with net cash from operating activities at **$26.8 million** and a positive net change in cash Full Year Cash Flow Summary (in thousands) | Cash Flow Activity | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net cash from operating activities | $26,775 | $(17,893) | | Net cash used in investing activities | $(2,155) | $(2,660) | | Net cash used in financing activities | $(8,570) | $(580) | | **Net change in cash** | **$16,050** | **$(21,133)** | [Reconciliation of Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides a reconciliation of MIMEDX's non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, and Free Cash Flow [Adjusted EBITDA](index=2&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA significantly increased to **$21.2 million** (24.4% margin) in Q4 2023 and **$58.5 million** for the full year Adjusted EBITDA Reconciliation Summary (in thousands) | Metric | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Income (loss) | $53,476 | $(415) | $58,228 | $(30,197) | | **Adjusted EBITDA** | **$21,217** | **$7,315** | **$58,482** | **$7,019** | | Adjusted EBITDA Margin | 24.4% | 9.8% | 18.2% | 2.6% | [Adjusted Net Income (Loss)](index=9&type=section&id=Adjusted%20Net%20Income%20(Loss)) Adjusted Net Income for Q4 2023 was **$10.8 million** and **$23.6 million** for the full year, a significant improvement from the prior year's loss Adjusted Net Income (Loss) Reconciliation (in thousands) | Metric | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $53,476 | $(415) | $58,228 | $(30,197) | | **Adjusted net income (loss)** | **$10,827** | **$2,265** | **$23,565** | **$(11,032)** | [Adjusted Earnings Per Share (EPS)](index=10&type=section&id=Adjusted%20Earnings%20Per%20Share%20(EPS)) Adjusted EPS for full-year 2023 was **$0.10**, a positive swing from a **($0.16)** loss in 2022, reflecting normalized earnings Adjusted EPS vs. GAAP Diluted EPS | Metric | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :--- | :--- | :--- | :--- | :--- | | GAAP diluted EPS | $0.32 | $(0.02) | $0.37 | $(0.33) | | **Adjusted EPS** | **$0.04** | **$0.01** | **$0.10** | **$(0.16)** | [Free Cash Flow](index=11&type=section&id=Free%20Cash%20Flow) The company generated positive Free Cash Flow of **$24.8 million** for full-year 2023, a substantial improvement from a negative **$19.4 million** in 2022 Free Cash Flow Reconciliation (in thousands) | Metric | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :--- | :--- | :--- | :--- | :--- | | Net cash from operating activities | $10,257 | $(5,624) | $26,775 | $(17,893) | | Capital expenditures | $(427) | $(667) | $(1,987) | $(1,514) | | **Free Cash Flow** | **$9,830** | **$(6,291)** | **$24,788** | **$(19,407)** |

MARIETTA, Ga., Jan. 22, 2024 (GLOBE NEWSWIRE) -- MiMedx Group, Inc. (NASDAQ:MDXG) ("MIMEDX" or the "Company") today announced that it has enhanced its capital structure by refinancing its existing indebtedness and obtaining additional borrowing capacity in support of the Company's future growth objectives. These new senior secured credit facilities (the "Facilities"), totaling $95 million and due in January 2029, are comprised of a $75 million revolving credit facility and a $20 million term loan facility a ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________________to______________________ Commission File Number 001-35887 MIMEDX GROUP, INC. (Exact name of registrant as specified in its charter) Florida 26-2 ...

• Go deeper and wider in Surgical Recovery Demonstrate corporate discipline around expenses 10 Management Team with Track Record of Success in MedTech Eric Smith SVP, Marketing & International BioTelemetry 12 Large and growing market opportunities Appendix Note: Some figures may not add to subtotals due to immaterial rounding differences. | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------------|---------|--------|-------|-------|-------|-------| | ($ millions) | 1Q22 | 2Q22 | ...

Financial Data and Key Metrics Changes - Q2 2023 net sales grew by approximately 21.5% year-over-year to $81.3 million, marking the highest quarterly net sales performance in nearly four years [13][36] - Gross profit margin improved to 83.3%, up from 82.3% year-over-year, reflecting a 100 basis point increase [37] - Adjusted EBITDA was $14.1 million, a significant improvement from an adjusted EBITDA loss of almost $1 million a year ago, representing a $15 million improvement [13][42] - The company ended the quarter with $68.7 million in cash, an increase of $7.5 million from the end of Q1 [13][45] Business Line Data and Key Metrics Changes - Wound & Surgical segment net sales totaled $80.5 million, reflecting a growth of 21.7% compared to $66.1 million last year [42] - Contribution margin for the Wound & Surgical segment was $27.6 million, representing 34.3% of Wound & Surgical net sales, compared to 21.5% in the prior year [42] - Sales in the private office sector grew by 25% year-over-year, continuing a positive trend from Q1 [17] Market Data and Key Metrics Changes - The company noted that procedure volumes are continuing to rise, contributing to market growth alongside their market share gains [55][56] - The CMS proposed physician fee schedule for 2024 indicates no major modifications to skin substitute reimbursements, which is expected to be a net positive for the company [18] Company Strategy and Development Direction - The company is focusing on enhancing its Wound & Surgical businesses due to substantial market opportunities and competitive offerings [11] - Plans include expanding the product portfolio and geographic reach, with a specific focus on adjacent markets to create additional growth drivers [20][27] - The company announced the suspension of its Knee Osteoarthritis development project to concentrate on Wound & Surgical markets [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong momentum and the expectation of continued growth, anticipating a multi-year growth phase [12][49] - The adjusted EBITDA margin is expected to exceed 20% in the second half of the year, demonstrating excellent leverage as the business scales [48] - Management highlighted the positive ruling from the 11th Circuit Court of Appeals regarding a securities class action lawsuit, which is expected to alleviate one of the largest potential claims against the company [33] Other Important Information - The company achieved its efficiency goals ahead of schedule, with Wound & Surgical contribution margin above 30% and corporate G&A below 20% of sales [30][44] - The company is optimistic about the early market development phase in Japan, expecting adoption to ramp in the coming months [19][66] Q&A Session Summary Question: What is the underlying growth profile for Wound Care and how much is from market share gains? - Management indicated that the growth is primarily driven by volume rather than price increases, with both market growth and share gains contributing to performance [55][56] Question: What are the expectations for in-office sales growth into 2024? - Management believes the fundamentals are strengthening, indicating the potential for continued double-digit growth [64] Question: What is the outlook for investigation-related expenses and R&D normalization? - Management expects investigation costs to taper off and R&D expenses to drop into the low to mid-single digits in the second half of the year [77][79] Question: Can Japan serve as a stepping stone for other parts of Asia? - While it is early, management sees potential for Japan to lead in the region, but the primary focus remains on establishing a strong market presence there [88] Question: What is the status of the Series B preferred shares? - Management noted that conversion of Series B preferred shares could occur if the share price remains above $7.7 for a specified period, potentially adding approximately 31 million shares to the diluted share count [89]

Part I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) Unaudited statements show significant Q2 revenue growth, a return to profitability, and a strategic shift away from Regenerative Medicine [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $68,652 | $65,950 | | Accounts receivable, net | $48,963 | $43,084 | | Inventory | $16,815 | $13,183 | | Total current assets | $141,223 | $134,198 | | Total assets | $176,378 | $171,430 | | **Liabilities & Equity** | | | | Total current liabilities | $44,460 | $43,557 | | Long term debt, net | $48,838 | $48,594 | | Total liabilities | $96,550 | $96,924 | | Total stockholders' deficit | $(12,666) | $(17,988) | - Total assets increased to **$176.4 million** as of June 30, 2023, from $171.4 million at year-end 2022, driven by increases in cash, accounts receivable, and inventory[17](index=17&type=chunk) - The company's stockholders' deficit improved, decreasing from **$(18.0) million** at the end of 2022 to **$(12.7) million** as of June 30, 2023[17](index=17&type=chunk) [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2023 vs Q2 2022 Performance (in thousands) | Metric | Q2 2023 | Q2 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Net sales | $81,257 | $66,883 | +21.5% | | Gross profit | $67,674 | $55,060 | +22.9% | | Operating income (loss) | $2,788 | $(9,636) | N/A | | Net income (loss) | $1,200 | $(10,868) | N/A | H1 2023 vs H1 2022 Performance (in thousands) | Metric | H1 2023 | H1 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Net sales | $152,933 | $125,777 | +21.6% | | Gross profit | $126,931 | $104,018 | +22.0% | | Operating income (loss) | $(590) | $(18,936) | +96.9% | | Net income (loss) | $(3,783) | $(21,357) | +82.3% | - The company reported restructuring expenses of **$3.3 million** in Q2 2023, which were not present in the prior year, related to the disbanding of its Regenerative Medicine business unit[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $3,727 | $(13,228) | | Net cash used in investing activities | $(1,025) | $(577) | | Net cash used in financing activities | $0 | $(776) | | **Net change in cash** | **$2,702** | **$(14,581)** | - Cash flow from operating activities showed a significant improvement, generating **$3.7 million** in the first six months of 2023 compared to a use of **$13.2 million** in the same period of 2022[25](index=25&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail the discontinuation of the Regenerative Medicine unit, strong revenue growth, and segment performance dominated by the Wound & Surgical business - On June 20, 2023, the company announced it would disband its Regenerative Medicine business unit and suspend its Knee Osteoarthritis (KOA) clinical trial program to focus on its core Wound & Surgical business[27](index=27&type=chunk)[102](index=102&type=chunk) Net Sales by Site of Service (in thousands) | Site of Service | Q2 2023 | Q2 2022 | YoY Growth | | :--- | :--- | :--- | :--- | | Hospital | $46,588 | $39,926 | 16.7% | | Private Office | $23,750 | $19,039 | 24.7% | | Other | $10,919 | $7,918 | 37.9% | Net Sales by Product Class (in thousands) | Product Class | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | Advanced Wound Care (Tissue/Other & Cord) | $81,238 | $66,163 | | Section 351 | $19 | $720 | - The company recorded a **$3.3 million** restructuring charge in Q2 2023, which includes a **$2.1 million** impairment of clinical trial assets, a **$0.5 million** goodwill impairment for the Regenerative Medicine unit, and **$0.6 million** in contract termination costs[102](index=102&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q2 sales growth to commercial execution and a strategic shift to the profitable Wound & Surgical business [Results of Operations](index=29&type=section&id=Results%20of%20Operations) - Q2 2023 net sales increased **21.5%** to **$81.3 million** from $66.9 million in Q2 2022, driven by growth in all care settings, particularly a **24.7%** increase in the Private Office setting and a **37.9%** increase in Other settings, which includes sales in Japan[120](index=120&type=chunk)[121](index=121&type=chunk) - Gross profit margin improved to **83.3%** in Q2 2023 from 82.3% in Q2 2022, attributed to yield improvements and a favorable sales mix[123](index=123&type=chunk) - Selling, General and Administrative (SG&A) expense decreased by **6.9%** in Q2 2023 compared to Q2 2022, mainly due to lower professional service costs, personnel costs, and bad debt expense[124](index=124&type=chunk) - Research and Development (R&D) expense increased **54.2%** in Q2 2023, primarily due to **$2.1 million** in severance expenses related to the disbanding of the Regenerative Medicine business unit and is expected to decrease in future quarters[125](index=125&type=chunk) [Segment Performance](index=31&type=section&id=Segment%20Performance) - The Wound & Surgical segment's net sales grew **21.7%** to **$80.5 million** in Q2 2023, with its segment contribution margin expanding significantly to **34.3%** from 21.4% in Q2 2022[131](index=131&type=chunk)[134](index=134&type=chunk) - The Regenerative Medicine segment incurred a segment contribution loss of **$10.1 million** in Q2 2023, driven by **$6.9 million** in R&D expenses and **$3.3 million** in restructuring charges following the decision to disband the unit[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) [Non-GAAP Financial Measures](index=35&type=section&id=Non-GAAP%20Financial%20Measures) Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $1,200 | $(10,868) | $(3,783) | $(21,357) | | EBITDA | $3,634 | $(8,605) | $1,159 | $(16,874) | | **Adjusted EBITDA** | **$14,102** | **$(959)** | **$19,645** | **$(2,678)** | | Adjusted EBITDA margin | 17.4% | (1.4)% | 12.8% | (2.1)% | - Adjusted EBITDA is calculated by excluding items such as depreciation, amortization, interest, taxes, investigation costs, share-based compensation, and expenses related to the disbanding of the Regenerative Medicine business unit[168](index=168&type=chunk)[169](index=169&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2023, the company had **$68.7 million** in cash and cash equivalents and a current ratio of **3.2**, with management believing existing cash is sufficient to meet obligations for at least the next 12 months[176](index=176&type=chunk) - The company has a **$50 million** senior secured term loan maturing on June 30, 2025, with an interest rate of **12.1%** as of June 30, 2023, and was in compliance with all financial covenants[177](index=177&type=chunk)[178](index=178&type=chunk)[180](index=180&type=chunk) - Accumulated but unpaid dividends on the Series B Preferred Stock totaled **$17.2 million** as of June 30, 2023[185](index=185&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposure stems from interest rate fluctuations on its variable-rate $50 million Term Loan - A **100 basis point (1%)** change in the SOFR rate would impact the company's annual interest expense by approximately **$0.5 million**, assuming the rate remains above the 1.5% floor[201](index=201&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of the end of the reporting period[203](index=203&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[204](index=204&type=chunk) Part II - OTHER INFORMATION [Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, with a key securities class action dismissal affirmed on appeal - In the Securities Class Action, the 11th Circuit Court of Appeals affirmed the District Court's dismissal of the case on July 10, 2023, with a petition for rehearing pending[87](index=87&type=chunk) - In the 'Welker v. MiMedx, et. al.' lawsuit alleging violations of the Georgia RICO Act, the company has filed a motion to dismiss, which is currently pending[88](index=88&type=chunk) [Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since its 2022 Annual Report on Form 10-K - The company reports no material changes to its risk factors from those previously disclosed in the 2022 Form 10-K[207](index=207&type=chunk) [Other Items (Items 2-6)](index=39&type=section&id=Other%20Items%20(Items%202-6)) This section confirms no material activity for Items 2-5 and lists the exhibits filed with the report - Items 2, 3, 4, and 5 are reported as 'None' or 'Not applicable,' indicating no activity in these areas during the quarter[208](index=208&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk) - Item 6 lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO and amendments to loan agreements[213](index=213&type=chunk)

Financial Data and Key Metrics Changes - The company reported Q1 2023 net sales of $71.7 million, a nearly 22% increase year-over-year, marking the highest first-quarter performance in five years [51][101] - Gross profit margin improved to 82.7%, with adjusted EBITDA of $5.5 million, a significant turnaround from a loss of $1.7 million a year ago [24][98] - Net loss decreased to $5 million from $10.5 million in the previous year [98] Business Line Data and Key Metrics Changes - The Wound & Surgical segment generated net sales of $70.6 million, reflecting approximately 21% growth, with a contribution margin of 28.5% [69] - The company is focusing on enhancing its product portfolio and expanding geographically, with new products launched contributing to growth [30][55] Market Data and Key Metrics Changes - The company experienced growth across all sites of service, with a notable increase in the private office segment, which had been challenging due to the Medicare reimbursement environment [56] - Initial sales began in Japan, with expectations for adoption to ramp up in the coming months [58] Company Strategy and Development Direction - The company aims to build on its leadership position in the Wound & Surgical markets by enhancing its product offerings and expanding into adjacent markets [55][31] - A focus on expense management and continuous process improvement is emphasized to ensure profitable growth over time [33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about EBITDA margin improvement as the business scales, driven by the performance of the sales organization [2] - The company anticipates low double-digit topline growth for the foreseeable future, with a cautious approach to expectations due to market dynamics [76][111] Other Important Information - The company is nearing the resolution of legal expenses related to past issues, which is expected to improve capital utilization moving forward [75] - The company has a robust pipeline of new products and continues to invest in innovation to remain competitive [8][132] Q&A Session Summary Question: Topline performance in the quarter - Management noted that approximately 5% of growth was attributed to easier comparisons from the previous year and an extra shipping day [81] Question: Adjusted EBITDA performance - The $5.5 million in adjusted EBITDA was driven by revenue growth and restructuring activities, with expectations for continued improvement in gross margins [87][114] Question: Impact of OIG recommendations - Management acknowledged that the OIG letter may have influenced private practices to avoid certain products, but the full impact is still uncertain [118] Question: New product contributions - New products have been successful and are significant contributors to year-over-year growth, with ongoing investments in research to support this [125][151] Question: Revenue growth in Japan - Initial sales in Japan are expected to grow, with ongoing training for providers to support product adoption [155]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________________to______________________ Commission File Number 001-35887 MIMEDX GROUP, INC. (Exact name of registrant as specified in its charter) Florida 26-27925 ...

MiMedx Group, Inc. (NASDAQ:MDXG) Q4 2022 Results Conference Call February 28, 2023 5:00 PM ET Company Participants Matt Notarianni - Head, IR Joe Capper - CEO Pete Carlson - CFO Conference Call Participants Anthony Petrone - Mizuho Group Carl Byrnes - Northland Capital Markets Swayampakula Ramakanth - H.C. Wainwright John Vandermosten - Zacks Operator Good afternoon, and thank you for standing by. Welcome to the MiMedx Fourth Quarter and Full Year 2022 Operating and Financial Results Conference Call. At thi ...