Sanara MedTech Inc. Based in Fort Worth, Texas, Sanara MedTech Inc.
(“Sanara,” the “Company,” “we,” “our” or “us”) (NASDAQ: SMTI), a
medical technology company focused on developing and
commercializing transformative technologies to improve clinical
outcomes and reduce healthcare expenditures in the surgical,
chronic wound and skincare markets, announced today its strategic,
operational and financial results for the quarter ended June 30,
2023.
Zack Fleming, Sanara’s CEO stated, “The second
quarter of 2023 was another record revenue quarter for the Company.
Subsequent to the end of the quarter, we completed the acquisition
of certain assets related to our collagen products business that we
believe will significantly add to our businesses’ performance by
decreasing costs and eliminating the royalties we paid on
CellerateRX Surgical and HYCOL to the sellers. Additionally, we
believe the acquisition will allow us to further develop and
commercialize new efficacious products.”
Second Quarter
2023
Strategic and Operational
Highlights (Unaudited)
- During the
trailing twelve-month period, the Company’s products were sold in
over 950 facilities across 33 states.
- The Company’s
products were contracted or approved to be sold in more than 3,000
hospitals/ASCs as of June 30, 2023. The large increase quarter over
quarter was attributable to the Company signing an agreement with a
major group purchasing organization.
- Subsequent to
the end of the quarter, the Company completed the acquisition of
certain assets related to its collagen products business. The
assets acquired included, among others:
- All rights and
ownership (for human wound care uses) for four 510(k) cleared
collagen-based wound care products, including CellerateRX® Surgical
Powder and Gel (“CellerateRX Surgical”) and HYCOL® Hydrolyzed
Collagen (“HYCOL”).
- All rights and
ownership (for human wound care uses) for three new collagen-based
products currently under development.
- All patents,
patents pending, trademarks and regulatory approvals related to
collagen human wound care products owned by the sellers. This
includes nine patents and all of the sellers’ patents pending for
collagen products for human wound care uses and five
trademarks.
Sales Analysis
The Company generated net revenues of $15.8
million for the three months ended June 30, 2023, compared to net
revenues of $9.7 million for the three months ended June 30, 2022,
a 63% increase from the prior year period. The higher net revenues
for the three months ended June 30, 2023 were primarily due to
increased sales of soft tissue repair products (CellerateRX
Surgical, FORTIFY TRG® Tissue Repair Graft, FORTIFY FLOWABLE® ECM,
and TEXAGEN® Amniotic Membrane Allograft) and, to a lesser extent,
bone fusion products (BiFORM® Bioactive Moldable Matrix, AMPLIFY™
Verified Inductive Bone Matrix, and ALLOCYTE® Advanced Cellular
Bone Matrix), as a result of the Company’s increased market
penetration and geographic expansion, additional revenues as a
result of the Company’s acquisition of Scendia Biologics, LLC in
2022 and the Company’s continuing strategy to expand its
independent distribution network in both new and existing U.S.
markets. The Company’s sales continue to be negatively impacted by
supply issues related to its ALLOCYTE® Advanced Cellular Bone
Matrix product. The Company is starting to see improvement and
expects an alternative source to come online in the near
future.
Earnings Analysis
The Company had a loss before income taxes of
$1.9 million for the three months ended June 30, 2023, compared to
a loss before income taxes of $3.4 million for the three months
ended June 30, 2022. The lower loss before income taxes for the
three months ended June 30, 2023 was due to operating expenses
increasing at a slower rate than net sales in addition to the
benefit recorded as a result of the change in fair value of earnout
liabilities. For the three months ended June 30, 2023, the Company
had a net loss of $1.9 million, compared to net income of $0.8
million for the three months ended June 30, 2022. The higher net
income in 2022 was primarily due to a one-time noncash income tax
benefit realized in Q2 of 2022. Subsequent to the end of the
quarter, the Company completed the acquisition of certain assets
related to its collagen products business. The Company believes
that cost savings and the elimination of royalties paid to the
sellers will meaningfully contribute to the Company’s earnings
going forward. In 2022, the Company paid $1.8 million in royalties
on its collagen products.
Conference Call
Sanara will host a conference call on Tuesday,
August 15, 2023, at 9:00 a.m. Eastern Time. The toll-free number to
call for this teleconference is 888-506-0062 (international
callers: 973-528-0011) and the access code is 233776. A telephonic
replay of the conference call will be available through Tuesday,
August 29, 2023, by dialing 877-481-4010 (international callers:
919-882-2331) and entering the replay passcode: 48852.
A live webcast of Sanara’s conference call will
be available under the Investor Relations section of the Company's
website, www.SanaraMedTech.com. A one-year online replay will be
available after the conclusion of the live broadcast.
About Sanara
MedTech Inc.
With a focus on improving patient outcomes
through evidence-based healing solutions, Sanara MedTech Inc.
markets, distributes and develops surgical, wound and skincare
products for use by physicians and clinicians in hospitals, clinics
and all post-acute care settings and offers wound care and
dermatology virtual consultation services via telemedicine.
Sanara’s products are primarily sold in the North American advanced
wound care and surgical tissue repair markets. Sanara markets and
distributes CellerateRX® Surgical Activated Collagen®, FORTIFY TRG®
Tissue Repair Graft and FORTIFY FLOWABLE® Extracellular Matrix as
well as a portfolio of advanced biologic products focusing on
AMPLIFY™ Verified Inductive Bone Matrix, ALLOCYTE® Advanced
Cellular Bone Matrix, BiFORM® Bioactive Moldable Matrix and
TEXAGEN® Amniotic Membrane Allograft to the surgical market. In
addition, the following products are sold in the wound care market:
BIAKŌS® Antimicrobial Skin and Wound Cleanser, BIAKŌS™
Antimicrobial Wound Gel, BIAKŌS® Antimicrobial Skin and Wound
Irrigation Solution and HYCOL® Hydrolyzed Collagen. Sanara’s
pipeline also contains potentially transformative product
candidates for mitigation of opportunistic pathogens and biofilm,
wound re-epithelialization and closure, necrotic tissue debridement
and cell compatible substrates. The Company believes it has the
ability to drive its pipeline from concept to preclinical and
clinical development while meeting quality and regulatory
requirements. Sanara is constantly seeking long-term strategic
partnerships with a focus on products that improve outcomes at a
lower overall cost. In addition, Sanara is actively seeking to
expand within its six focus areas of wound and skin care for the
acute, post-acute, and surgical markets. The focus areas are
debridement, biofilm removal, hydrolyzed collagen, advanced
biologics, negative pressure wound therapy products and the oxygen
delivery system segment of the wound and skincare markets.
Information about Forward-Looking
Statements
The statements in this press release that do not
constitute historical facts are “forward-looking statements,”
within the meaning of and subject to the safe harbor created by the
Private Securities Litigation Reform Act of 1995. These statements
may be identified by terms such as “aims,” “anticipates,”
“believes,” “contemplates,” “continue,” “could,” “estimates,”
“expect,” “forecast,” “guidance,” “intend,” “may,” “plan,”
“possible,” “potential,” “predicts,” “preliminary,” “projects,”
“seeks,” “should,” “targets,” “will” or “would,” or the negatives
of these terms, variations of these terms or other similar
expressions. These forward-looking statements include, among
others, statements regarding the potential benefits created by the
acquisition of certain assets related to the Company’s collagen
products business, the anticipated impact of such acquisition on
the Company’s business and future financial and operating results,
the Company’s ability to develop and commercialize the new
collagen-based products currently under development, including the
manufacturing, distribution, marketing and sale of such products,
the Company’s ability to maintain or replace the manufacturing and
distribution process of the sellers in the acquisition, including
relationships with vendors, the development of new products, the
timing of commercialization of our products, the regulatory
approval process and expansion of the Company’s business in
telehealth and wound care. These items involve risks, contingencies
and uncertainties such as the extent of product demand, market and
customer acceptance, the effect of economic conditions,
competition, pricing, uncertainties associated with the development
and process for obtaining regulatory approval for new products, the
ability to consummate and integrate acquisitions, and other risks,
contingencies and uncertainties detailed in the Company’s SEC
filings, which could cause the Company’s actual operating results,
performance or business plans or prospects to differ materially
from those expressed in, or implied by these statements.
All forward-looking statements speak only as of
the date on which they are made, and the Company undertakes no
obligation to revise any of these statements to reflect the future
circumstances or the occurrence of unanticipated events, except as
required by applicable securities laws.
Investor Contact:
Callon Nichols, Director of Investor
Relations713-826-0524CNichols@sanaramedtech.com
SOURCE: Sanara MedTech Inc.
SANARA MEDTECH INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS
|
|
(Unaudited) |
|
|
|
|
|
June 30, |
|
December 31, |
Assets |
|
2023 |
|
|
2022 |
|
Current
assets |
|
|
|
|
|
|
Cash |
|
$ |
6,060,228 |
|
|
$ |
8,958,995 |
|
Accounts receivable, net |
|
|
7,141,105 |
|
|
|
6,805,761 |
|
Accounts receivable – related party |
|
|
20,662 |
|
|
|
98,548 |
|
Royalty receivable |
|
|
49,344 |
|
|
|
99,594 |
|
Inventory, net |
|
|
4,420,864 |
|
|
|
3,549,000 |
|
Prepaid and other assets |
|
|
485,734 |
|
|
|
1,104,611 |
|
Total current
assets |
|
|
18,177,937 |
|
|
|
20,616,509 |
|
|
|
|
|
|
|
|
Long-term
assets |
|
|
|
|
|
|
Property and equipment, net |
|
|
1,240,269 |
|
|
|
1,416,436 |
|
Right of use assets – operating leases |
|
|
2,030,938 |
|
|
|
806,402 |
|
Goodwill |
|
|
3,601,781 |
|
|
|
3,601,781 |
|
Intangible assets, net |
|
|
30,143,578 |
|
|
|
31,509,980 |
|
Investment in equity securities |
|
|
3,084,278 |
|
|
|
3,084,278 |
|
Total long-term
assets |
|
|
40,100,844 |
|
|
|
40,418,877 |
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
58,278,781 |
|
|
$ |
61,035,386 |
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Accounts payable |
|
$ |
1,016,180 |
|
|
$ |
1,392,701 |
|
Accounts payable – related parties |
|
|
96,656 |
|
|
|
34,036 |
|
Accrued royalties and expenses |
|
|
1,895,706 |
|
|
|
2,144,475 |
|
Accrued bonuses and commissions |
|
|
5,899,255 |
|
|
|
7,758,284 |
|
Earnout liabilities – current |
|
|
700,000 |
|
|
|
1,162,880 |
|
Operating lease liabilities – current |
|
|
273,539 |
|
|
|
313,933 |
|
Total current
liabilities |
|
|
9,881,336 |
|
|
|
12,806,309 |
|
|
|
|
|
|
|
|
Long-term
liabilities |
|
|
|
|
|
|
Earnout liabilities – long-term |
|
|
5,653,534 |
|
|
|
6,003,811 |
|
Operating lease liabilities – long-term |
|
|
1,779,413 |
|
|
|
505,291 |
|
Total long-term
liabilities |
|
|
7,432,947 |
|
|
|
6,509,102 |
|
|
|
|
|
|
|
|
Total
liabilities |
|
|
17,314,283 |
|
|
|
19,315,411 |
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity |
|
|
|
|
|
|
Common Stock: $0.001 par value, 20,000,000 shares authorized;
8,439,745 issued and outstanding as of June 30, 2023 and 8,299,957
issued and outstanding as of December 31, 2022 |
|
|
8,440 |
|
|
|
8,300 |
|
Additional paid-in capital |
|
|
67,881,419 |
|
|
|
65,213,987 |
|
Accumulated deficit |
|
|
(26,740,930 |
) |
|
|
(23,394,757 |
) |
Total Sanara MedTech
shareholders' equity |
|
|
41,148,929 |
|
|
|
41,827,530 |
|
Equity attributable to
noncontrolling interest |
|
|
(184,431 |
) |
|
|
(107,555 |
) |
Total shareholders'
equity |
|
|
40,964,498 |
|
|
|
41,719,975 |
|
Total liabilities and
shareholders' equity |
|
$ |
58,278,781 |
|
|
$ |
61,035,386 |
|
SANARA MEDTECH INC. AND
SUBSIDIARIESCONSOLIDATED
STATEMENTS OF OPERATIONS
(UNAUDITED)
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
Revenue |
|
$ |
15,753,164 |
|
|
$ |
9,670,778 |
|
|
$ |
31,275,081 |
|
|
$ |
17,482,001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold |
|
|
2,187,516 |
|
|
|
958,086 |
|
|
|
4,313,175 |
|
|
|
1,763,167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
13,565,648 |
|
|
|
8,712,692 |
|
|
|
26,961,906 |
|
|
|
15,718,834 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
|
13,811,476 |
|
|
|
10,428,133 |
|
|
|
26,780,545 |
|
|
|
19,803,763 |
|
Research and development |
|
|
1,177,128 |
|
|
|
1,067,000 |
|
|
|
2,494,452 |
|
|
|
1,271,637 |
|
Depreciation and amortization |
|
|
803,694 |
|
|
|
539,124 |
|
|
|
1,582,569 |
|
|
|
741,871 |
|
Change in fair value of earnout liabilities |
|
|
(360,470 |
) |
|
|
63,427 |
|
|
|
(813,157 |
) |
|
|
63,427 |
|
Total operating
expenses |
|
|
15,431,828 |
|
|
|
12,097,684 |
|
|
|
30,044,409 |
|
|
|
21,880,698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss |
|
|
(1,866,180 |
) |
|
|
(3,384,992 |
) |
|
|
(3,082,503 |
) |
|
|
(6,161,864 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
expense |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense and other |
|
|
- |
|
|
|
- |
|
|
|
(6 |
) |
|
|
- |
|
Share of losses from equity method investment |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(379,633 |
) |
Total other
expense |
|
|
- |
|
|
|
- |
|
|
|
(6 |
) |
|
|
(379,633 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes |
|
|
(1,866,180 |
) |
|
|
(3,384,992 |
) |
|
|
(3,082,509 |
) |
|
|
(6,541,497 |
) |
Income tax benefit |
|
|
- |
|
|
|
4,141,906 |
|
|
|
- |
|
|
|
4,141,906 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
|
|
(1,866,180 |
) |
|
|
756,914 |
|
|
|
(3,082,509 |
) |
|
|
(2,399,591 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net loss attributable to noncontrolling interest |
|
|
(38,447 |
) |
|
|
(12,512 |
) |
|
|
(76,876 |
) |
|
|
(39,693 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Sanara MedTech shareholders |
|
$ |
(1,827,733 |
) |
|
$ |
769,426 |
|
|
$ |
(3,005,633 |
) |
|
$ |
(2,359,898 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.22 |
) |
|
$ |
0.10 |
|
|
$ |
(0.37 |
) |
|
$ |
(0.31 |
) |
Diluted |
|
$ |
(0.22 |
) |
|
$ |
0.09 |
|
|
$ |
(0.37 |
) |
|
$ |
(0.31 |
) |
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
8,226,271 |
|
|
|
7,791,431 |
|
|
|
8,200,173 |
|
|
|
7,699,422 |
|
Diluted |
|
|
8,226,271 |
|
|
|
8,162,983 |
|
|
|
8,200,173 |
|
|
|
7,699,422 |
|
SANARA MEDTECH INC. AND
SUBSIDIARIESCONSOLIDATED
STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
Six Months Ended |
|
June 30, |
|
2023 |
|
|
2022 |
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
Net loss |
$ |
(3,082,509 |
) |
|
$ |
(2,399,591 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
1,582,569 |
|
|
|
741,871 |
|
Loss on disposal of property and equipment |
|
- |
|
|
|
2,500 |
|
Bad debt expense |
|
86,000 |
|
|
|
195,000 |
|
Inventory obsolescence |
|
69,990 |
|
|
|
159,717 |
|
Share-based compensation |
|
1,724,637 |
|
|
|
1,288,335 |
|
Noncash lease expense |
|
144,628 |
|
|
|
116,143 |
|
Loss on equity method investment |
|
- |
|
|
|
379,633 |
|
Benefit from deferred income taxes |
|
- |
|
|
|
(4,141,906 |
) |
Change in fair value of earnout liabilities |
|
(813,157 |
) |
|
|
63,427 |
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
Accounts receivable, net |
|
(371,094 |
) |
|
|
(1,170,829 |
) |
Accounts receivable – related party |
|
77,886 |
|
|
|
(130,797 |
) |
Inventory, net |
|
(941,854 |
) |
|
|
(423,764 |
) |
Prepaid and other assets |
|
618,877 |
|
|
|
177,861 |
|
Accounts payable |
|
(376,521 |
) |
|
|
294,772 |
|
Accounts payable – related parties |
|
62,620 |
|
|
|
589,675 |
|
Accrued royalties and expenses |
|
(248,769 |
) |
|
|
761,377 |
|
Accrued bonuses and commissions |
|
(1,859,029 |
) |
|
|
346,887 |
|
Operating lease liabilities |
|
(135,436 |
) |
|
|
(117,106 |
) |
Net cash used in
operating activities |
|
(3,461,162 |
) |
|
|
(3,266,795 |
) |
Cash flows from
investing activities: |
|
|
|
|
|
Purchases of property and equipment |
|
(40,650 |
) |
|
|
(80,892 |
) |
Proceeds from disposal of assets |
|
650 |
|
|
|
345 |
|
Purchases of intangible assets |
|
- |
|
|
|
(2,053,722 |
) |
Investment in equity securities |
|
- |
|
|
|
(250,000 |
) |
Net cash used in
investing activities |
|
(40,000 |
) |
|
|
(2,384,269 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
Equity offering net proceeds |
|
1,033,761 |
|
|
|
- |
|
Net settlement of equity-based awards |
|
(431,366 |
) |
|
|
(102,931 |
) |
Distribution to noncontrolling interest member |
|
- |
|
|
|
(220,000 |
) |
Net cash provided by
(used in) financing activities |
|
602,395 |
|
|
|
(322,931 |
) |
Net decrease in
cash |
|
(2,898,767 |
) |
|
|
(5,973,995 |
) |
Cash, beginning of
period |
|
8,958,995 |
|
|
|
18,652,841 |
|
Cash, end of
period |
$ |
6,060,228 |
|
|
$ |
12,678,846 |
|
|
|
|
|
|
|
Cash paid during the
period for: |
|
|
|
|
|
Interest |
$ |
6 |
|
|
$ |
- |
|
Supplemental noncash
investing and financing activities: |
|
|
|
|
|
Right of use assets obtained in exchange for lease obligations |
|
1,369,164 |
|
|
|
- |
|
Equity issued for acquisitions |
|
- |
|
|
|
9,709,089 |
|
Earnout liabilities generated by acquisitions |
|
- |
|
|
|
3,882,151 |
|
Investment in equity securities converted in asset acquisition |
|
- |
|
|
|
1,803,440 |
|
Sanara MedTech (NASDAQ:SMTI)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Sanara MedTech (NASDAQ:SMTI)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024