Sanara MedTech(SMTI) - 2025 Q1 - Quarterly Results

Financial Performance - Net revenue for Q1 2025 increased by 26% year-over-year to $23.4 million, up from $18.5 million in Q1 2024[5] - Gross profit for Q1 2025 was $21.6 million, a 30% increase from $16.6 million in Q1 2024, with a gross margin of 92%[9] - Net revenue for the three months ended March 31, 2025, was $23,434,096, representing a 26.5% increase from $18,536,638 in the same period of 2024[24] - Gross profit for the same period was $21,599,129, up from $16,646,592, indicating a gross margin improvement[24] - Segment Adjusted EBITDA for the total was $657,969 for Q1 2025, compared to $311,421 in Q1 2024, reflecting an increase of approximately 111%[32] - Segment Adjusted EBITDA as a percentage of Net Revenue for Q1 2025 was 2.8%, up from 1.7% in Q1 2024, showing improved operational efficiency[32] Expenses and Losses - Operating expenses increased by 30% to $23.7 million, driven by a 32% rise in selling, general and administrative expenses[10] - Net loss for Q1 2025 was $3.5 million, compared to a net loss of $1.8 million in Q1 2024[13] - Operating loss increased to $2,080,029 for Q1 2025 compared to a loss of $1,531,707 in Q1 2024[24] - Net loss attributable to Sanara MedTech shareholders was $3,527,177 for Q1 2025, compared to $1,764,184 in Q1 2024, reflecting a significant increase in losses[24] - The net loss for the three months ended March 31, 2025, was $(3,527,383), compared to $(1,799,043) in the prior year, indicating a significant increase in losses[32] - Net Loss as a percentage of Net Revenue for Q1 2025 was (15.1)%, compared to (9.7)% in Q1 2024, indicating a worsening loss margin[32] Cash and Debt Management - As of March 31, 2025, the company had $20.7 million in cash and $42.8 million in principal debt obligations[15] - Total current assets rose to $36,842,548 as of March 31, 2025, compared to $33,305,988 at the end of 2024, driven by an increase in cash and inventory[22] - Long-term debt increased to $43,402,223 as of March 31, 2025, up from $30,689,290 at the end of 2024, indicating higher leverage[22] - Cash at the end of the period was $20,687,806, a significant increase from $15,878,295 at the end of 2024, reflecting improved cash flow management[26] - Total liabilities increased to $59,711,004 as of March 31, 2025, compared to $49,180,030 at the end of 2024, indicating a rise in financial obligations[22] Product Sales and Initiatives - Sales of soft tissue repair products rose by 28% to $20.5 million, while bone fusion products increased by 18% to $2.9 million[8] - Sanara plans to launch its first pilot program for the Tissue Health Plus initiative in Q2 2025 and is seeking financial partners for this strategy[6] - The company aims to address the large surgical greenfield opportunity and improve profitability in its Sanara Surgical segment throughout 2025[6] Research and Development - Research and development expenses for Q1 2025 were $1,114,138, compared to $946,298 in Q1 2024, highlighting continued investment in innovation[24] Other Financial Metrics - Adjusted EBITDA for Q1 2025 was $0.7 million, up from $0.3 million in Q1 2024, with the Sanara Surgical segment contributing $2.7 million[14] - Interest expense for Q1 2025 was $1,317,092, compared to $267,336 in Q1 2024, highlighting a significant increase in financing costs[32] - Noncash share-based compensation for Q1 2025 totaled $1,304,904, compared to $803,386 in Q1 2024, indicating an increase of approximately 62%[32] - Acquisition costs for Q1 2025 amounted to $308,684, reflecting ongoing investment in growth strategies[32] - Depreciation and amortization expenses for Q1 2025 were $1,124,410, compared to $1,105,420 in Q1 2024, showing a slight increase[32] - The share of losses from equity method investments was $143,608 for Q1 2025, with no losses reported in Q1 2024, indicating new challenges in equity investments[32]