FORT WORTH, TX , May 16, 2022 (GLOBE NEWSWIRE) -- Sanara MedTech Inc. (“Sanara,” the “Company,” “we,” “our” or “us”) (NASDAQ: SMTI), a provider of products and technologies for surgical and chronic wound care dedicated to improving patient outcomes, announced today its strategic, operational and financial results for the quarter ended March 31, 2022.
Zach Fleming, Sanara's CEO, stated, “Sanara generated record revenue in the first quarter of 2022 including our first month in which we generated sales over $3 million in a single month. This is a significant milestone for the Company and the result of our team working together to continue to build our business. Subsequent to the end of the quarter, we completed our acquisition of Precision Healing and are focused on preparing our 510(k)s for submission for the Precision Healing imager and assay.”
First Quarter 2022 Strategic and Operational Highlights
- Generated over $3 million of revenue in a single month for the first time
- Increased the number of facilities where CellerateRX is approved to be sold to approximately 1,250
- In the trailing twelve-month period, Cellerate has been sold in 562 hospitals across 26 states
- Subsequent to the end of the first quarter of 2022, the Company completed its acquisition of Precision Healing Inc. (“Precision Healing”)
First Quarter 2022 Consolidated Financial Results
- Revenues. For the three months ended March 31, 2022, revenues totaled $7.8 million compared to revenues of $5.0 million for the three months ended March 31, 2021, representing a 56% increase from the prior year period. The higher revenues in 2022 were primarily due to increased sales of surgical wound care products as a result of our sales force 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, 2022 was $0.81 million compared to cost of goods sold of $0.47 million for the three months ended March 31, 2021. The increase over the prior year period was primarily due to higher sales volume in 2022.
- Selling, general and administrative (“SG&A”) expenses. SG&A expenses for the three months ended March 31, 2022, were $9.4 million compared to SG&A expenses of $5.4 million for the three months ended March 31, 2021. The higher SG&A expenses in 2022 were primarily due to increased selling costs resulting from sales force expansion and operational support, higher sales commission expense as a result of higher product sales, higher non-cash equity compensation costs, and higher payroll costs related to the mid-year addition of the Rochal workforce in July 2021. Costs related to travel and in-person promotional activities increased in 2022 compared to 2021 when many in-person activities were cancelled or postponed in 2021 as a result of the COVID-19 pandemic. Breaking SG&A down further, total costs related to commissions and selling fees were $3.2 million, total costs related to compensation and benefits were $2.9 million (excluding Rochal Technologies and our comprehensive wound and skin strategy which were $0.3 million and $0.2 respectively), and costs related to sales, marketing, and clinical studies totaled $0.7 million. Total costs related to Rochal Technologies were $0.6 million and total costs related to our comprehensive wound and skin strategy were $0.8 million (including $0.45 million of transaction costs associated with the Precision Healing merger which closed on April 4, 2022). As part of our strategy to expand our sales reach in new and existing markets, we employed thirteen additional field sales managers since March 31, 2021. As of March 31, 2022, we had a total of 31 field sales managers.
- Research and development (“R&D”) expenses. R&D expenses for the three months ended March 31, 2022, were $0.20 million compared to $0.12 million for the three months ended March 31, 2021. The higher R&D expenses in 2022 were due to several new development projects for our currently licensed products.
- Net income / loss. For the three months ended March 31, 2022, we had a net loss of $3.2 million, compared to net loss of $1.2 million for the three months ended March 31, 2021. The higher net loss in 2022 was impacted by the increased SG&A costs described above (+$4 million), higher R&D expenses (+