Sanara MedTech Inc. Reports Third Quarter 2024 Results
Sanara MedTech (NASDAQ: SMTI) reported its Q3 2024 results, marking its twelfth consecutive record net revenue quarter. Net revenue increased 35% year-over-year to $21.7 million. The company reported a net loss of $2.9 million, compared to a $1.1 million loss in Q3 2023. The company expanded its distribution network to 300+ distributors and its products are now sold in over 1,200 facilities across 34 states. Sanara invested $5.0 million for a 6.64% stake in ChemoMouthpiece and secured exclusive U.S. distribution rights for their cryotherapy device.
Sanara MedTech (NASDAQ: SMTI) ha riportato i risultati del terzo trimestre 2024, segnando il dodicesimo trimestre consecutivo di ricavi netti record. I ricavi netti sono aumentati del 35% su base annua, raggiungendo 21,7 milioni di dollari. L'azienda ha registrato una perdita netta di 2,9 milioni di dollari, rispetto a una perdita di 1,1 milioni di dollari nel terzo trimestre 2023. Sanara ha ampliato la propria rete di distribuzione a oltre 300 distributori e i suoi prodotti sono ora venduti in oltre 1.200 strutture in 34 stati. Sanara ha investito 5,0 milioni di dollari per una quota del 6,64% in ChemoMouthpiece e ha ottenuto i diritti esclusivi di distribuzione negli Stati Uniti per il loro dispositivo di crioterapia.
Sanara MedTech (NASDAQ: SMTI) reportó sus resultados del tercer trimestre de 2024, marcando su duodécimo trimestre consecutivo de ingresos netos récord. Los ingresos netos aumentaron un 35% interanual, alcanzando 21,7 millones de dólares. La compañía reportó una pérdida neta de 2,9 millones de dólares, en comparación con una pérdida de 1,1 millones de dólares en el tercer trimestre de 2023. Sanara amplió su red de distribución a más de 300 distribuidores y sus productos ahora se venden en más de 1.200 instalaciones en 34 estados. Sanara invirtió 5,0 millones de dólares para adquirir una participación del 6,64% en ChemoMouthpiece y aseguró los derechos exclusivos de distribución en EE. UU. para su dispositivo de crioterapia.
Sanara MedTech (NASDAQ: SMTI)는 2024년 3분기 실적을 발표하며 12분기 연속으로 기록적인 순매출을 달성했습니다. 순매출은 전년 대비 35% 증가하여 2170만 달러에 도달했습니다. 회사는 290만 달러의 순손실을 보고했으며, 이는 2023년 3분기 110만 달러의 손실과 비교됩니다. Sanara는 300개 이상의 유통 네트워크를 확장하였고, 그 제품은 현재 34개 주의 1,200개 이상의 시설에서 판매되고 있습니다. Sanara는 ChemoMouthpiece의 6.64% 지분을 확보하기 위해 500만 달러를 투자했으며, 그들의 냉치료 장치에 대한 미국 독점 유통 권한을 확보했습니다.
Sanara MedTech (NASDAQ: SMTI) a publié ses résultats pour le troisième trimestre 2024, marquant ainsi son douzième trimestre consécutif de revenus nets record. Les revenus nets ont augmenté de 35 % par rapport à l'année précédente, atteignant 21,7 millions de dollars. La société a enregistré une perte nette de 2,9 millions de dollars, contre une perte de 1,1 million de dollars au troisième trimestre 2023. Sanara a élargi son réseau de distribution à plus de 300 distributeurs et ses produits sont désormais vendus dans plus de 1 200 établissements répartis dans 34 États. Sanara a investi 5,0 millions de dollars pour acquérir une participation de 6,64 % dans ChemoMouthpiece et a obtenu les droits de distribution exclusifs aux États-Unis pour leur dispositif de cryothérapie.
Sanara MedTech (NASDAQ: SMTI) hat seine Ergebnisse für das dritte Quartal 2024 veröffentlicht und damit das zwölfte Quartal in Folge mit Rekordnettoeinnahmen verzeichnet. Die Nettoeinnahmen stiegen im Vergleich zum Vorjahr um 35% auf 21,7 Millionen Dollar. Das Unternehmen meldete einen Nettoverlust von 2,9 Millionen Dollar, verglichen mit einem Verlust von 1,1 Millionen Dollar im dritten Quartal 2023. Sanara hat sein Vertriebsnetz auf über 300 Händler erweitert, und seine Produkte werden jetzt in mehr als 1.200 Einrichtungen in 34 Bundesstaaten verkauft. Sanara investierte 5,0 Millionen Dollar für einen 6,64%-Anteil an ChemoMouthpiece und sicherte sich die exklusiven Vertriebsrechte in den USA für deren Kryotherapie-Gerät.
- Record net revenue growth of 35% YoY to $21.7 million
- Expanded distribution network by 50 distributors since January 2024
- Products now sold in 1,200+ facilities across 34 states
- Improved Adjusted EBITDA to $0.8 million from $0.3 million YoY
- Secured exclusive U.S. distribution rights for ChemoMouthpiece's cryotherapy device
- Net loss increased to $2.9 million from $1.1 million YoY
- Higher SG&A costs due to THP platform buildout ($1.2 million increase)
- Increased interest expense of $0.7 million from CRG Servicing loan
- THP segment losses increased to $2.7 million from $1.7 million YoY
Insights
This earnings report shows mixed results with notable growth and ongoing challenges. Revenue growth of
The company's expansion metrics are impressive, with 300+ distributors and presence in 1,200+ facilities. The strategic investment in ChemoMouthpiece and new distribution agreements could provide additional revenue streams. However, increased SG&A costs and infrastructure buildout expenses are currently weighing on profitability. The positive Adjusted EBITDA of
The company's strategic expansion into chemotherapy-induced oral mucositis through the ChemoMouthpiece investment represents a significant market opportunity. The recent CPT code issuance for cryotherapy procedures enhances potential reimbursement pathways, which could accelerate adoption in clinical settings. The alignment with existing wound care products and the Tufts University collagen peptides creates a comprehensive treatment portfolio for cancer-related complications.
The planned 2025 commercial launch through SI Healthcare Technologies provides a clear pathway to market. The expansion to 4,000+ approved hospitals indicates strong institutional acceptance of Sanara's product portfolio, though market penetration remains a key focus area.
FORT WORTH, TX, Nov. 12, 2024 (GLOBE NEWSWIRE) -- 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, today reported its strategic, operational and financial results for the quarter ended September 30, 2024.
“The third quarter of 2024 was Sanara’s twelfth consecutive record net revenue quarter, which is a testament to the hard work and dedication of our entire organization,” stated Ron Nixon, Sanara's Executive Chairman and CEO. “Looking ahead, we remain focused on continuing to execute our growth strategy and delivering exceptional value to both our customers and shareholders.”
Third Quarter 2024 Strategic, Operational and Financial Highlights (Unaudited)
- Net revenue increased
35% year-over-year to$21.7 million in the third quarter of 2024.
- For the three months ended September 30, 2024, the Company had a net loss of
$2.9 million , compared to a net loss of$1.1 million for the three months ended September 30, 2023.
- The Company generated Adjusted EBITDA* of
$0.8 million for the three months ended September 30, 2024, compared to Adjusted EBITDA* of$0.3 million for the three months ended September 30, 2023.
- The Company currently has agreements with 300+ distributors (+50 since January 2024) with 2,900+ potential sellers (+500 since January 2024).
- The Company’s products were sold in over 1,200 facilities across 34 states plus the District of Columbia, based on a minimum of
$50,000 of revenue, during the trailing twelve-month period ended September 30, 2024.
- The Company’s products were contracted or approved to be sold in more than 4,000 hospitals as of September 30, 2024.
- On October 4, 2024, the Company appointed Mr. Keith Myers to serve as a director on its Board. Mr. Myers is the chairman and CEO emeritus of LHC Group, one of the largest and highest quality in-home healthcare providers in the United States. He co-founded LHC Group in 1994 and led its growth from a single home health agency to a publicly traded company with approximately 29,000 employees and approximately 950 agency locations across 38 states and the District of Columbia, until its merger with Optum Inc. in 2023.
- The Company announced that Sanara CMP LLC, a wholly owned subsidiary of the Company, invested
$5.0 million in exchange for an ownership percentage of approximately6.64% in ChemoMouthpiece, LLC (“CMp”), which owns and manufactures a 510(k) cleared cryotherapy device designed to reduce the incidence and severity of chemotherapy induced oral mucositis. In connection with the investment, the Company announced the execution of an exclusive U.S. distribution agreement with CMp. This product aligns well with Sanara’s wound and skin care strategy, which includes the licensed collagen peptides from Tufts University that focus on radiation dermatitis. The American Medical Association recently issued the CPT code (effective July 2024) to be applied for potential reimbursement by physicians and payers for the use of an oral cavity device for a cryotherapy procedure in conjunction with chemotherapy. SI Healthcare Technologies, LLC, a joint venture entity owned 50/50 by Sanara and InfuSystem Inc., will be the exclusive distributor of CMp’s Standard Chemo Regiment kits in the United States. The product is currently being introduced to the market and is expected to be commercially launched in 2025.
Third Quarter 2024 Revenue Analysis (Consolidated)
During the third quarter of 2024, the Company continued to further penetrate existing accounts while also expanding into new territories, growing the number of facilities where our products were sold to 900+ in Q3 2024 compared to 600+ in Q3 2023. For the quarter ended September 30, 2024, Sanara generated net revenue of
Third Quarter 2024 Earnings Analysis (Consolidated)
Sanara reported a net loss of
The Company generated Adjusted EBITDA* of
* Adjusted EBITDA is a non-GAAP financial measure. See the discussion and the reconciliations at the end of this release for additional information.
Third Quarter 2024 Earnings Analysis (Segmented)
Sanara Surgical generated a net loss of
Sanara Surgical generated Segment EBITDA* of
* Segment EBITDA is a non-GAAP financial measure. See the discussion and the reconciliations at the end of this release for additional information.
Conference Call
Sanara will host a conference call on Wednesday, November 13, 2024, 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 373459. A telephonic replay of the conference call will be available through Wednesday, November 27, 2024, by dialing 877-481-4010 (international callers: 919-882-2331) and entering the replay passcode: 51566.
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.
Sanara MedTech Inc. is 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. The Company 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 ACTIGEN™ Verified Inductive Bone Matrix, ALLOCYTE® Plus Advanced Viable Bone Matrix, BiFORM® Bioactive Moldable Matrix, TEXAGEN® Amniotic Membrane Allograft, and BIASURGE® Advanced Surgical Solution 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, and BIAKŌS® Antimicrobial Skin and Wound Irrigation Solution. 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.
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,” “intends,” “may,” “plans,” “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 our business strategy and mission, 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 uncertainties associated with the development and process for obtaining regulatory approval for new products, our ability to build out our executive team, our ability to identify and effectively utilize the net proceeds of the term loan to support the Company’s growth initiatives, 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 Relations Contact:
Jack Powell or Mike Piccinino, CFA
ICR Healthcare
IR@sanaramedtech.com
SOURCE: Sanara MedTech Inc.
SANARA MEDTECH INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| (Unaudited) | ||||||||
| September 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash | $ | 16,277,189 | $ | 5,147,216 | ||||
| Accounts receivable, net | 11,070,622 | 8,474,965 | ||||||
| Accounts receivable – related parties | 43,409 | 8,400 | ||||||
| Royalty receivable | - | 49,344 | ||||||
| Inventory, net | 3,008,349 | 4,717,533 | ||||||
| Convertible loan receivable | 1,079,411 | - | ||||||
| Prepaid and other assets | 429,428 | 608,411 | ||||||
| Total current assets | 31,908,408 | 19,005,869 | ||||||
| Long-term assets | ||||||||
| Intangible assets, net | 42,029,142 | 44,926,061 | ||||||
| Goodwill | 3,601,781 | 3,601,781 | ||||||
| Investment in equity securities | 8,321,412 | 3,084,278 | ||||||
| Right of use assets – operating leases | 1,688,963 | 1,995,204 | ||||||
| Property and equipment, net | 995,770 | 1,257,956 | ||||||
| Total long-term assets | 56,637,068 | 54,865,280 | ||||||
| Total assets | $ | 88,545,476 | $ | 73,871,149 | ||||
| Liabilities and shareholders’ equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 1,301,362 | $ | 1,924,082 | ||||
| Accounts payable – related parties | 150,611 | 77,805 | ||||||
| Accrued bonuses and commissions | 8,256,801 | 7,676,770 | ||||||
| Accrued royalties and expenses | 2,285,374 | 2,047,678 | ||||||
| Earnout liabilities – current | 1,906,550 | 1,100,000 | ||||||
| Current portion of debt | - | 580,357 | ||||||
| Operating lease liabilities – current | 439,129 | 361,185 | ||||||
| Total current liabilities | 14,339,827 | 13,767,877 | ||||||
| Long-term liabilities | ||||||||
| Long-term debt, net of current portion | 30,076,715 | 9,113,123 | ||||||
| Earnout liabilities – long-term | 2,006,000 | 2,723,001 | ||||||
| Operating lease liabilities – long-term | 1,407,164 | 1,737,445 | ||||||
| Other long-term liabilities | 1,261,495 | 1,941,686 | ||||||
| Total long-term liabilities | 34,751,374 | 15,515,255 | ||||||
| Total liabilities | 49,091,201 | 29,283,132 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders’ equity | ||||||||
| Common Stock: | 8,743 | 8,535 | ||||||
| Additional paid-in capital | 76,021,528 | 72,860,556 | ||||||
| Accumulated deficit | (36,246,405 | ) | (28,036,814 | ) | ||||
| Total Sanara MedTech shareholders’ equity | 39,783,866 | 44,832,277 | ||||||
| Equity attributable to noncontrolling interest | (329,591 | ) | (244,260 | ) | ||||
| Total shareholders’ equity | 39,454,275 | 44,588,017 | ||||||
| Total liabilities and shareholders’ equity | $ | 88,545,476 | $ | 73,871,149 | ||||
SANARA MEDTECH INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net Revenue | $ | 21,671,599 | $ | 16,024,948 | $ | 60,367,060 | $ | 47,300,029 | ||||||||
| Cost of goods sold | 1,991,987 | 1,751,349 | 5,890,719 | 6,064,524 | ||||||||||||
| Gross profit | 19,679,612 | 14,273,599 | 54,476,341 | 41,235,505 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Selling, general and administrative expenses | 18,993,255 | 13,877,879 | 54,143,122 | 40,658,424 | ||||||||||||
| Research and development | 1,359,530 | 986,454 | 3,291,479 | 3,480,906 | ||||||||||||
| Depreciation and amortization | 1,103,854 | 997,674 | 3,314,781 | 2,580,243 | ||||||||||||
| Change in fair value of earnout liabilities | 147,000 | (681,753 | ) | 67,549 | (1,494,910 | ) | ||||||||||
| Total operating expenses | 21,603,639 | 15,180,254 | 60,816,931 | 45,224,663 | ||||||||||||
| Operating loss | (1,924,027 | ) | (906,655 | ) | (6,340,590 | ) | (3,989,158 | ) | ||||||||
| Other expense | ||||||||||||||||
| Interest expense | (927,577 | ) | (188,294 | ) | (1,839,259 | ) | (188,300 | ) | ||||||||
| Share of losses from equity method investment | (31,448 | ) | - | (31,448 | ) | - | ||||||||||
| Total other expense | (959,025 | ) | (188,294 | ) | (1,870,707 | ) | (188,300 | ) | ||||||||
| Net loss | (2,883,052 | ) | (1,094,949 | ) | (8,211,297 | ) | (4,177,458 | ) | ||||||||
| Less: Net loss attributable to noncontrolling interest | (25,284 | ) | (34,579 | ) | (85,331 | ) | (111,455 | ) | ||||||||
| Net loss attributable to Sanara MedTech shareholders | $ | (2,857,768 | ) | $ | (1,060,370 | ) | $ | (8,125,966 | ) | $ | (4,066,003 | ) | ||||
| Net loss per share of common stock, basic and diluted | $ | (0.34 | ) | $ | (0.13 | ) | $ | (0.96 | ) | $ | (0.49 | ) | ||||
| Weighted average number of common shares outstanding, basic and diluted | 8,517,381 | 8,332,341 | 8,468,394 | 8,244,503 | ||||||||||||
SANARA MEDTECH INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
| Nine Months Ended | ||||||||
| September 30, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (8,211,297 | ) | $ | (4,177,458 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 3,314,781 | 2,580,243 | ||||||
| Credit loss expense | 230,930 | 214,061 | ||||||
| Inventory obsolescence | 356,261 | 222,691 | ||||||
| Share-based compensation | 3,240,362 | 2,582,163 | ||||||
| Noncash lease expense | 306,240 | 243,988 | ||||||
| Share of losses from equity method investment | 31,448 | - | ||||||
| Back-end fee | 219,689 | - | ||||||
| Paid-in-kind interest | 424,067 | - | ||||||
| Accretion of finance liabilities | 166,595 | 39,699 | ||||||
| Amortization and write-off of debt issuance costs | 150,219 | 2,055 | ||||||
| Change in fair value of earnout liabilities | 67,549 | (1,494,910 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | (2,777,243 | ) | (794,344 | ) | ||||
| Accounts receivable – related parties | (35,009 | ) | 87,516 | |||||
| Inventory, net | 1,352,923 | (1,664,714 | ) | |||||
| Prepaid and other assets | 178,963 | 482,921 | ||||||
| Accounts payable | (622,719 | ) | 547,186 | |||||
| Accounts payable – related parties | 72,806 | 30,711 | ||||||
| Accrued royalties and expenses | 249,910 | 557,295 | ||||||
| Accrued bonuses and commissions | 580,031 | (1,673,629 | ) | |||||
| Operating lease liabilities | (252,337 | ) | (182,498 | ) | ||||
| Net cash used in operating activities | (955,831 | ) | (2,397,024 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (133,676 | ) | (210,970 | ) | ||||
| Proceeds from disposal of property and equipment | - | 650 | ||||||
| Investment in equity securities | (5,268,582 | ) | - | |||||
| Advancement on convertible loan receivable | (1,079,391 | ) | - | |||||
| Acquisitions, net of cash acquired | - | (9,942,750 | ) | |||||
| Net cash used in investing activities | (6,481,649 | ) | (10,153,070 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Loan proceeds, net | 29,339,260 | 9,688,341 | ||||||
| Pay off line of credit | (9,750,000 | ) | - | |||||
| Equity offering net proceeds (expenses) | (75,000 | ) | 1,033,761 | |||||
| Net settlement of equity-based awards | (87,807 | ) | (150,296 | ) | ||||
| Cash payment of finance and earnout liabilities | (859,000 | ) | (744,795 | ) | ||||
| Net cash provided by financing activities | 18,567,453 | 9,827,011 | ||||||
| Net increase (decrease) in cash | 11,129,973 | (2,723,083 | ) | |||||
| Cash, beginning of period | 5,147,216 | 8,958,995 | ||||||
| Cash, end of period | $ | 16,277,189 | $ | 6,235,912 | ||||
| Cash paid during the period for: | ||||||||
| Interest | $ | 948,759 | $ | 146,546 | ||||
| Supplemental noncash investing and financing activities: | ||||||||
| Right of use assets obtained in exchange for lease obligations | - | 1,531,773 | ||||||
| Equity issued for acquisitions | - | 3,089,645 | ||||||
| Earnout and other liabilities generated by acquisitions | - | 3,759,642 | ||||||
SANARA MEDTECH INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
To supplement the Company’s financial information presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we present certain non-GAAP financial measures in this press release and on the related teleconference call, including Adjusted EBITDA and Segment EBITDA. The Company’s management uses these non-GAAP financial measures, both internally and externally, to assess and communicate the financial performance of the Company. The Company defines Adjusted EBITDA as net income (loss) excluding interest expense/income, provision/benefit for income taxes, depreciation and amortization, non-cash share-based compensation expense, change in fair value of earnout liabilities, share of losses from equity method investment, executive separation costs, legal and diligence expenses related to acquisitions, and gains/losses on the disposal of property and equipment, as each is applicable to the periods presented. Segment EBITDA is calculated in the same manner as Adjusted EBITDA but is presented on a segment basis.
The Company believes Adjusted EBITDA and Segment EBITDA are useful to investors because they facilitate comparisons of its core business operations across periods on a consistent basis. Accordingly, the Company adjusts for certain items, such as change in fair value of earnout liabilities, when calculating Adjusted EBITDA and Segment EBITDA because the Company believes that such items are not related to the Company’s core business operations.
The Company’s non-GAAP financial measures are not in accordance with, nor an alternative for, measures conforming to GAAP and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. The Company continues to provide all information required by GAAP, but it believes that evaluating its ongoing operating results may not be as useful if an investor or other user is limited to reviewing only GAAP financial measures. The Company does not, nor does it suggest that investors should, consider these non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Material limitations associated with the use of such measures include that they do not reflect all costs included in operating expenses and may not be comparable with similarly named financial measures of other companies. Furthermore, these non-GAAP financial measures are based on subjective determinations of management regarding the nature and classification of events and circumstances. The Company presents these non-GAAP financial measures to provide investors with information to evaluate the Company’s operating results in a manner similar to how management evaluates business performance. To compensate for any limitations in such non-GAAP financial measures, management believes that it is useful in understanding and analyzing the results of the business to review both GAAP information and the related non-GAAP financial measures. Whenever the Company uses a non-GAAP financial measure, it provides a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial measure. Investors are encouraged to review and consider these reconciliations.
Segment EBITDA is reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance. We have provided a reconciliation of this measure as it relates to our segments below.
Reconciliation of Net Income (Loss) to Segment EBITDA and Adjusted EBITDA (Unaudited):
| Three Months Ended | ||||||||||||||||||||||||
| September 30, | ||||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||
| Sanara Surgical | THP | Total | Sanara Surgical | THP | Total | |||||||||||||||||||
| Net Income (Loss) | $ | (180,488 | ) | $ | (2,702,564 | ) | $ | (2,883,052 | ) | $ | 567,235 | $ | (1,662,184 | ) | $ | (1,094,949 | ) | |||||||
| Adjustments: | ||||||||||||||||||||||||
| Interest expense | 927,577 | - | 927,577 | 188,294 | - | 188,294 | ||||||||||||||||||
| Depreciation and amortization | 696,888 | 406,966 | 1,103,854 | 590,563 | 407,111 | 997,674 | ||||||||||||||||||
| Noncash share-based compensation | 1,003,599 | 21,831 | 1,025,430 | 813,606 | 43,920 | 857,526 | ||||||||||||||||||
| Change in fair value of earnout liabilities | - | 147,000 | 147,000 | (758,783 | ) | 77,030 | (681,753 | ) | ||||||||||||||||
| Share of losses from equity method investment | 31,448 | - | 31,448 | - | - | - | ||||||||||||||||||
| Executive separation costs | 59,685 | - | 59,685 | - | - | - | ||||||||||||||||||
| Acquisition costs | 24,812 | 405,207 | 430,019 | - | - | - | ||||||||||||||||||
| Segment EBITDA (on a segment basis) / Adjusted EBITDA (consolidated) | $ | 2,563,521 | $ | (1,721,560 | ) | $ | 841,961 | $ | 1,400,916 | $ | (1,134,124 | ) | $ | 266,792 | ||||||||||
| Nine Months Ended | ||||||||||||||||||||||||
| September 30, | ||||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||
| Sanara Surgical | THP | Total | Sanara Surgical | THP | Total | |||||||||||||||||||
| Net Income (Loss) | $ | (2,872,286 | ) | $ | (5,339,011 | ) | $ | (8,211,297 | ) | $ | 1,181,296 | $ | (5,358,754 | ) | $ | (4,177,458 | ) | |||||||
| Adjustments: | ||||||||||||||||||||||||
| Interest expense | 1,839,259 | - | 1,839,259 | 188,300 | - | 188,300 | ||||||||||||||||||
| Depreciation and amortization | 2,093,797 | 1,220,984 | 3,314,781 | 1,359,180 | 1,221,063 | 2,580,243 | ||||||||||||||||||
| Noncash share-based compensation | 2,803,536 | 108,031 | 2,911,567 | 2,423,335 | 158,828 | 2,582,163 | ||||||||||||||||||
| Change in fair value of earnout liabilities | (14,451 | ) | 82,000 | 67,549 | (1,385,914 | ) | (108,996 | ) | (1,494,910 | ) | ||||||||||||||
| Share of losses from equity method investment | 31,448 | - | 31,448 | - | - | - | ||||||||||||||||||
| Executive separation costs (1) | 964,466 | - | 964,466 | - | - | - | ||||||||||||||||||
| Acquisition costs | 249,901 | 577,892 | 827,793 | - | - | - | ||||||||||||||||||
| Segment EBITDA (on a segment basis) / Adjusted EBITDA (consolidated) | $ | 5,095,670 | $ | (3,350,104 | ) | $ | 1,745,566 | $ | 3,766,196 | $ | (4,087,858 | ) | $ | (321,662 | ) | |||||||||
(1) - Includes
FAQ
What was Sanara MedTech's (SMTI) revenue growth in Q3 2024?
How much did Sanara MedTech (SMTI) lose in Q3 2024?
What was Sanara MedTech's (SMTI) investment in ChemoMouthpiece in 2024?
How many facilities sell Sanara MedTech (SMTI) products as of Q3 2024?
