☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or For the transition period from ________ to ________ Commission File Number 001-39678 SANARA MEDTECH INC. (Exact name of Registrant as specified in its charter) | Texas | 59-2219994 | | --- | --- | | (St ...

Financial Data and Key Metrics Changes - In Q2 2022, Sanara generated $9.7 million in revenue, a 54% increase from $6.3 million in Q2 2021, marking a record revenue quarter [8][21] - For the six months ended June 30, 2022, net revenues totaled $17.5 million, up 55% from $11.3 million in the same period last year [21] - The company reported a net loss of $3.3 million in Q2 2022, compared to a net loss of $1.2 million in Q2 2021 [24] - SG&A expenses for Q2 2022 were $10.4 million, up from $6.6 million in Q2 2021, primarily due to increased sales and marketing expenses [23][24] Business Line Data and Key Metrics Changes - The surgical team showed strong sales growth, with CellerateRX sold in 590 hospitals and ambulatory surgery centers across 27 states [12][13] - The acquisition of Scendia Biologics is expected to enhance the product portfolio and expand market reach [10][15] - Scendia's unaudited trailing 12-month revenue was $11 million as of May 31, 2022, with Sanara products generating $1.5 million in sales to Scendia [15] Market Data and Key Metrics Changes - The company is focused on expanding its geographic footprint for all products across all 50 states [15] - The Precision Healing platform is expected to improve wound healing efficacy and reduce healing time while lowering overall costs [18] Company Strategy and Development Direction - Sanara aims to integrate Precision Healing and Scendia into its operations while advancing its comprehensive wound and skin strategy [28] - The company is developing a multispectral imager and biomarker assay to enhance wound diagnosis and treatment [17] - The strategy includes expanding the independent distribution network in both new and existing U.S. markets [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, citing record revenue quarters driven by the surgical wound strategy [28] - The company anticipates a significant decrease in losses and aims to achieve cash flow neutrality by the end of Q1 2023 [85] - Management highlighted the importance of securing payer contracts to validate their model and improve healing rates [60] Other Important Information - The initial purchase price for Scendia was $7.4 million, with additional earn-out payments based on sales growth [15][16] - The Precision Healing Imager 510(k) submission is expected to be filed early in Q4 2022 [18] Q&A Session Summary Question: What drove the sharp growth in hospital admissions in Q2? - Management attributed the growth to increased hiring and activity in new markets, along with the addition of a seasoned national accounts manager [36] Question: How did Scendia's portfolio perform in June? - Management did not disclose specific performance for June but indicated they would hold off on that information [38] Question: What is the expected operating expense profile post-Scendia acquisition? - Management stated that no additional personnel would be needed at Scendia, focusing on leveraging existing products [39] Question: What caused the delay in the Precision Healing filing? - The delay was attributed to supply chain issues affecting electronic components and software [40] Question: What is the potential of the ecosystem in the next three to five years? - Management emphasized a continuous growth strategy without a defined end game, focusing on market share and customer satisfaction [61]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 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 001-39678 SANARA MEDTECH INC. (Exact name of Registrant as specified in its charter) Texas 59-2219994 (State or other jurisdiction o ...

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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 10-Q ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 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 001-39678 SANARA MEDTECH INC. (Exact name of Registrant as specified in its charter) Washington, D.C. 20549 (State or other jurisdiction of incorporation ...

Financial Data and Key Metrics Changes - In Q4 2021, the company generated $7 million in revenue with a net loss of $3.6 million. For the full year, revenues reached $24.1 million, marking a 55% increase from the previous year. The net loss for 2021 was $8 million, compared to a net loss of $4.4 million in 2020 [6][14][17]. Business Line Data and Key Metrics Changes - The surgical team achieved record sales in both Q4 and the full year, with Cellerate being sold in 471 hospitals and ASCs across 26 states by the end of Q4 2021. The company was approved to sell in approximately 1,100 facilities during the year [10][11]. - Two new products, FORTIFY TRG Tissue Repair Graft and FORTIFY FLOWABLE Extracellular Matrix, were launched, with initial sales of FORTIFY TRG occurring in Q4 [11]. Market Data and Key Metrics Changes - The company reported strong demand for its products, with December 2021 being a record sales month. The expansion of geographic coverage and penetration into more hospitals contributed to this performance [11][28]. Company Strategy and Development Direction - The company is focusing on expanding its sales force and distribution network in both new and existing U.S. markets. The WounDerm platform is being integrated with Homecare Homebase, the largest EHR provider in the home health market [12][14]. - The Precision Healing Imager is being prepared for FDA submission, with a strategic decision made to file with the commercial unit design [12]. Management's Comments on Operating Environment and Future Outlook - Management indicated that the operating environment is returning to normal, with no unusual disruptions affecting business operations. The strategy is being executed effectively, and the company is optimistic about future growth [31][32]. Other Important Information - The company made leadership changes, promoting Zach Fleming to CEO and adding new board members to strengthen the team [7][8]. - Cash on hand at the end of 2021 was $18.7 million, with cash used in operating activities for the full year amounting to $4.8 million [17]. Q&A Session Summary Question: Was there anything abnormal about Q4 that positively skewed the results? - Management confirmed there was nothing unusual, attributing the performance to an increase in surgeries as COVID-related restrictions eased [24]. Question: What is the normal cadence in the year regarding sales? - Management noted that Q4 tends to be strong due to patients reaching their deductibles, while Q3 is typically weaker due to vacations [26]. Question: Did COVID impact January's performance? - Management stated that they did not see any significant disruptions in January, indicating business as usual [29]. Question: Can you explain the expansion of the WounDerm pilot? - An agency refers to the location of a home healthcare company, typically covering a 50-mile radius for patient populations [34]. Question: Can you comment on January, February, March trends? - Management avoided giving forward-looking statements but reiterated that they are continuing to execute their strategy without disruptions [37]. Question: How does Precision Healing fit into the long-term strategy? - Precision Healing is seen as critical for developing precise treatment protocols and is expected to be reimbursed under existing codes [42]. Question: Is there potential for licensing Precision Healing internationally? - Management indicated that they have not explored licensing yet but see potential opportunities for partnerships [44]. Question: Can you explain the partnership with Scendia Biologics? - The partnership aims to offer complementary products that enhance surgical outcomes, with a joint venture established for growth [46]. Question: Which product in development excites you the most? - Management expressed excitement about both BIASURGE and Precision Healing, viewing them as potential game changers in their respective markets [48][49]. Question: How does the acquisition of a home health provider by a major insurer affect your business? - Management sees every home healthcare provider as a potential partner, and the trend of vertical integration is viewed positively for their strategy [52].

Market Opportunity - Approximately 8.2 million patients in the U.S. suffer from surgical and chronic wounds annually, with total treatment costs estimated at $28 billion[20] - The U.S. teledermatology market is projected to grow from $5 billion in 2019 to $45 billion by 2027, indicating significant market expansion opportunities[20] - Chronic wounds affect approximately 15% of the Medicare beneficiary population, highlighting a significant target market for the company's products[31] - Over 34 million people in the U.S., approximately 10% of the population, suffer from diabetes, leading to complications such as diabetic foot ulcers (DFUs)[32] Product Development and Pipeline - The company focuses on developing transformative technologies for surgical and chronic wound care, aiming to improve clinical outcomes and reduce healthcare costs[16] - The company is developing a robust pipeline of products for chronic and surgical wound care, including antimicrobial skin protectants and next-generation offerings[25] - The company acquired assets from Rochal, including four FDA 510(k) clearances, enhancing its product pipeline for wound care[19] - The company plans to fully commercialize three products with Cook Biotech in 2022, which are already cleared for surgical wound care[24] - The product pipeline includes candidates for mitigating opportunistic pathogens, wound re-epithelialization, and necrotic tissue debridement[144] Clinical Efficacy - A study showed that using CellerateRX Surgical powder resulted in a 0% rate of wound dehiscence or infection in neurosurgery cases, compared to infection rates as high as 24% in similar surgeries[35] - The BIAKŌS system demonstrated a >99.99% reduction in biofilm burden within 24 hours, outperforming commercial controls[42] Regulatory Compliance - The company’s medical products are regulated by the FDA, requiring marketing clearance or approval before introduction into the U.S. market[80] - The PMA process requires manufacturers to demonstrate safety and effectiveness through extensive data, including preclinical studies and clinical trials, with a review period that can take up to several years[85] - Compliance with FDA's current good manufacturing practices (cGMP) is essential, and any failure could jeopardize product commercialization[141] - The company is subject to comprehensive federal, state, and local laws and regulations, which are subject to frequent change[79] Financial Performance and Risks - The company has a history of losses, which may continue as it expands its selling efforts[116] - The company’s revenue growth is difficult to predict, and a shortfall in forecast revenues may harm its operating results[116] - The company has incurred net losses in most years since 2004 and plans to continue significant investments in its sales force and clinical programs, which will increase operating expenses[120] - The company may need to seek additional financing to meet capital requirements[125] Competition and Market Challenges - The company faces competition from large, established medical device manufacturers and telehealth providers, which could adversely affect its financial condition[116] - The company faces significant competition in the wound care sector, with many competitors having greater resources and established collaborations[148] - The company’s planned expansion into wound and skin care virtual consult services will require entering markets with little or no experience[117] Telehealth and Technology Integration - A pilot program for telehealth services conducted in Q4 2021 showed positive results, with plans to expand to six more agencies in Q1 2022[30] - The company is developing a comprehensive service offering through WounDerm, which includes an EMR software platform and virtual consultation services, expected to be commercially available in mid-2022[49][50] - The Precision Healing product platform, designed for wound assessment, is anticipated to be commercially available in 2023 and will integrate with the WounDerm EMR[53] Compliance and Legal Risks - The company is subject to various healthcare fraud and abuse laws, and failure to comply could result in substantial penalties[121] - Non-compliance with healthcare fraud and abuse laws could result in substantial penalties for the company[191] - The company must comply with HIPAA regulations regarding the protection of personally identifiable information (PII) and protected health information (PHI), with mandatory penalties for violations[197] Operational and Management Challenges - The company’s ability to manage growth effectively is critical, as future expansion efforts may strain internal resources[128] - The company may face challenges in attracting and retaining key personnel, which could adversely affect its business[127] - Effective management of product inventory is crucial, as products have a shelf life of 18 months to three years, impacting profitability[150] Reimbursement and Financial Viability - A significant portion of the company's wound care products are reimbursed under Medicare Part B, making reimbursement policies critical for market opportunities[184] - Changes in reimbursement policies by third-party payors could adversely affect the company's ability to market products and generate revenue[183] Future Outlook and Strategic Initiatives - The company is exploring new indications of use and improved formulas for next-generation products, including CellerateRX and HYCOL[86] - The company’s comprehensive wound and skin care strategy involves growth through acquisitions and investments, which requires incurring substantial costs[116]

Sanara MedTech Inc. (NASDAQ:SMTI) Q3 2021 Earnings Conference Call November 15, 2021 9:00 AM ET Company Participants Callon Nichols - Director of IR Ron Nixon - Chairman of our Board Zachary Fleming - President of Surgical Mike McNeil - CFO Conference Call Participants Ian Cassel - MicroCapClub Evan Claar - CBI Capital Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are designed to help you navigate the audio s ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 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 001-39678 SANARA MEDTECH INC. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporat ...

Sanara MedTech Inc. (NASDAQ:SMTI) Q2 2021 Earnings Conference Call August 17, 2021 9:00 AM ET Company Participants Callon Nichols - Director of Investor Relations Ron Nixon - Chairman of our Board Mike McNeil - Chief Financial Officer Zack Fleming - President of Surgical Conference Call Participants Brandon Folkes - Cantor Fitzgerald Neil Cataldi - Blueprint Capital Management Operator Good day, ladies and gentlemen, and welcome to the Sanara MedTech Inc. Second Quarter 2021 Results and Business Update Con ...