Sanara MedTech Inc. Announces First Quarter 2021 Results and Business Update
FORT WORTH, TX / ACCESSWIRE / May 17, 2021 / Sanara MedTech Inc.
Based in Fort Worth, Texas, Sanara MedTech Inc. (“Sanara,” the “Company,” “we,” “our” or “us”) (NASDAQ: SMTI), a provider of surgical and chronic wound care products dedicated to improving patient outcomes, announced today its strategic, operational and financial results for the quarter ended March 31, 2021.
Ron Nixon, Sanara’s Executive Chairman, stated, “The first quarter of 2021 was another record quarter for Sanara. Revenue was up 42% versus the same quarter in 2020 despite a slowdown in January due to restrictions on elective surgeries in some of our key markets as COVID-19 cases spiked. As the quarter progressed, we saw a strong rebound in sales and ended the quarter with a record sales month and our first month in which the Company generated revenue above $2 million.”
First Quarter 2021 Strategic Highlights
- We successfully closed our underwritten public offering of 1,265,000 shares of common stock at a public offering price of $25.00 per share, including 165,000 shares of common stock issued pursuant to the full exercise by the underwriters of their option to purchase additional shares of common stock. We received net proceeds of approximately $29 million, after deducting underwriting discounts and commissions and offering expenses. Sanara expects to use the net proceeds from the offering to expand its salesforce and for further development of its products, services and technologies pipeline, clinical studies and general corporate purposes, including working capital.
- The Company’s surgical products continued to be approved for use in additional facilities throughout the quarter. As of March 31, 2021, CellerateRX was approved to be sold in over 850 hospitals and ambulatory surgical centers.
- Sanara hired one additional surgical territory manager in Q1, bringing the total number of surgical regional sales managers and territory managers to 18.
- The Company’s surgical products generated revenue in 20 states in Q1 2021 at or above a $50,000 annual run rate (compared to 18 states that generated revenue above $50,000 for the full year 2020).
- The Company’s chronic wound care product sales grew 23% compared to the same quarter in 2020.
- WounDerm, the Company’s proprietary wound care provider electronic medical record (EMR), completed development and was successfully launched in partnership with a wound care provider group in the skilled nursing facility vertical. The service was used in a total of 1,304 encounters (668 unique patients) in Q1.
- The WounDerm bedside mobile application has been fully integrated with the EMR, allowing for efficient bedside clinical management and easy access to virtual specialty consultations via telemedicine. The mobile application can be sourced through both the Apple and Google Play stores.
- United Wound and Skin Solutions has confirmed the pilot site for its virtual consult and advanced wound care strategy in the home health vertical. The pilot is expected to begin in mid-summer 2021.
- Precision Healing continued to advance the development of its technology in the first quarter by completing ten beta imager units for use in future clinical studies in select care settings. In Q1 2021, 35 patients had data collected on their wounds to further development of the healing algorithms.
The operational highlights above are part of the Company’s continued efforts to improve outcomes at a lower overall cost across all care settings and advance its comprehensive wound and skin care strategy.
First Quarter 2021 Consolidated Financial Results
- Revenues. For the three months ended March 31, 2021, we generated revenues of $5,009,436 compared to revenues of $3,524,331 for the three months ended March 31, 2020, a 42% increase from the prior year period. The higher revenues in the first quarter of 2021 were primarily due to increased sales of surgical wound care products as a result of our sales force and geographic expansion and our continuing strategy to expand our independent distribution network in both new and existing U.S. markets.
- Cost of goods sold. Cost of goods sold for the three months ended March 31, 2021, was $474,433, compared to costs of goods sold of $330,188 for the three months ended March 31, 2020. The increase over prior year was primarily due to higher sales volume.
- Selling, general and administrative expenses. SG&A expenses for the three months ended March 31, 2021, were $5,409,730 compared to SG&A expenses of $4,932,151 for the three months ended March 31, 2020. The higher SG&A expenses in 2021 were primarily due to higher sales commission expense as a result of higher product sales, and higher costs related to the expansion of our comprehensive wound and skin care strategy.
- Net income / loss. For the three months ended March 31, 2021, we had a net loss of $1,183,376, compared to net loss of $1,841,012 for the three months ended March 31, 2020. The improvement in our net loss was primarily due to higher sales revenues in the first quarter of 2021 compared to the same period in 2020.
About Sanara MedTech Inc.
With a focus on improving patient outcomes through evidence-based healing solutions, Sanara MedTech Inc. markets and distributes wound and skincare products to physicians, hospitals, clinics, and all post-acute care settings and is seeking to offer 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 MedTech markets and distributes CellerateRX® Surgical Activated Collagen® to the surgical markets as well as the following products to 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 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 skincare for the acute, post-acute, and surgical markets. The focus areas are debridement, biofilm removal, hydrolyzed collagen, advanced biologics, negative pressure wound therapy adjunct products, and the oxygen delivery system segment of the healthcare industry. For more information, visit SanaraMedTech.com.
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 “anticipate,” “believes,” “contemplates,” “continue” “could,” “estimates,” “expect,” “intend,” “may,” “plan,” “potential” “predicts,” “preliminary,” “project,” “seek,” “should,” “target,” “will,” or “would,” or the negatives of these terms, variations of these terms or other similar expressions. These forward-looking statements include statements regarding the expected use of proceeds from the February 2021 offering, pilot programs and the development of new products 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, 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.
Callon Nichols, Director of Investor Relations
SOURCE: Sanara MedTech Inc.