Sanara MedTech(SMTI) - 2024 Q1 - Quarterly Results

Financial Performance - In Q1 2024, Sanara MedTech generated record sales of $18.5 million, marking the tenth consecutive record revenue quarter, a 19% increase from $15.5 million in Q1 2023[3] - The company reported a net loss of $1.8 million for Q1 2024, compared to a net loss of $1.2 million in Q1 2023, primarily due to increased SG&A costs[6] - Adjusted EBITDA for Q1 2024 was $0.3 million, an improvement from negative Adjusted EBITDA of $0.3 million in Q1 2023[3] - Net revenue for Q1 2024 was $18,536,638, a 19.5% increase from $15,521,917 in Q1 2023[19] - Gross profit for Q1 2024 was $16,646,592, compared to $13,396,258 in Q1 2023, reflecting a gross margin improvement[19] - Operating loss increased to $(1,531,707) in Q1 2024 from $(1,216,323) in Q1 2023[19] - Net loss attributable to Sanara MedTech shareholders was $(1,764,184) in Q1 2024, compared to $(1,177,900) in Q1 2023, resulting in a net loss per share of $(0.21) versus $(0.14) in the prior year[19] - Net cash used in operating activities was $(1,594,370) in Q1 2024, a slight improvement from $(1,741,313) in Q1 2023[21] - Cash at the end of Q1 2024 was $2,828,234, down from $7,286,437 at the end of Q1 2023[21] - Adjusted EBITDA for Q1 2024 was $311,421, compared to $(292,830) in Q1 2023, indicating a positive shift in operational performance[23] - Total operating expenses increased to $18,178,299 in Q1 2024 from $14,612,581 in Q1 2023, driven by higher selling, general, and administrative expenses[19] - The company reported a significant increase in share-based compensation, rising to $803,386 in Q1 2024 from $597,305 in Q1 2023[21] Company Growth and Initiatives - Sanara's products were sold in over 1,080 facilities across 34 states and the District of Columbia, with contracts or approvals in more than 3,000 hospitals/ambulatory surgery centers as of March 31, 2024[3] - The company entered into a $55.0 million non-dilutive term loan agreement to support growth initiatives, receiving $15.0 million at closing and the option to draw up to $40.0 million before June 30, 2025[3] - The company made significant progress in intellectual property and manufacturing processes for its CellerateRX product[3] Financial Position - Sanara's cash decreased to $2.83 million as of March 31, 2024, down from $5.15 million at the end of 2023[17] - Total assets decreased to $70.91 million as of March 31, 2024, from $73.87 million at the end of 2023[17] - Shareholders' equity decreased to $43.01 million as of March 31, 2024, from $44.59 million at the end of 2023[17] Management Changes - The company appointed new executives, including Jake Waldrop as COO and Tyler Palmer as Chief Corporate Development and Strategy Officer[3]