Sanara MedTech Inc.

Good morning, ladies and gentlemen, and welcome to the Sonera MedTech, Inc. First Quarter 2022 Results and Business Update conference call. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Kellen Nichols. Sir, the floor is yours.

Thank you, and good morning, everyone. I'd like to welcome you to Sonera MedTech's earnings conference call for the quarter ended March 31, 2022. We issued our earnings yesterday afternoon, and I would also like to highlight we posted today's deck on our investor relations page. This supplemental deck, as well as a copy of our earnings release, the form 10-Q, and a transcript of this call will be available on this page. We'll reference this information in our remarks today. We expect today's prepared comments from Ron Nixon, Executive Chairman, Zach Fleming, Chief Executive Officer, and Mike Neal, Chief Financial Officer, to last approximately 15 minutes to allow time for Q&A. Certain statements in this conference call, in our press release, and in our supplemental deck include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For more information about the risks and uncertainties involving forward-looking statements and factors that could cause actual results to vary materially from those projected or implied by forward-looking statements, Please see our most recent annual report on Form 10-K and our Form 10-Q for the quarter. Now, I'd like to turn the call over to Ron.

Thank you, Callan, and good morning, everyone. In the first quarter of 2022, Sonera generated $7.8 million in revenue, representing a 56% increase from the prior year period. Additionally, we had our first $3 million month, sales month, in March. which was a significant milestone for our sales team. The company had a net loss of $3.2 million in the quarter. Our net loss was impacted by higher SG&A, which increased $4 million year over year, in addition to higher R&D costs, which rose slightly less than $100,000. Losses due to the equity method accounting for our investment in precision healing also impacted our net loss, which increased by approximately $300,000 year over year. Breaking down first quarter, SG&A further, total costs related to commissions and selling fees were $3.2 million. Total scenario costs related to compensation of benefits were $2.9 million, excluding compensation of benefits for Rochelle and Wunder, which were $300,000 and $200,000, respectively. Total costs related to sales, marketing, and clinical studies were $700,000. Total costs related to Rochelle Technologies were $600,000, Total costs related to wound derm were $800,000, including $450,000 in transaction costs associated with our precision healing merger. For the rest of the year, we expect to see continued growth in surgical sales while we further develop new products, seek additional partnerships, and evaluate new opportunities that are synergistic to our current offering. Based on the current growth rates and our internal forecasts, We're on track to achieve our goal of being breakeven on a cash flow basis in 2023. During the quarter, our surgical team continued to focus on increasing facility approvals, driving product adoption in existing facilities, evaluating new products and supporting research, and proving the efficacy of our current product offering. Zach will expand upon more of this in his remarks. Subsequent to the end of the quarter, in the month of April, we acquired the remaining ownership interest in Precision Healing, not already owned by us. Prior to this transaction, the company owned 40.3% of Precision Healing. We view the Precision Healing multispectral imager and biomarker assay as an important technology to further enhance the Senera technology platform and our comprehensive wound and skin offering. We believe that wound and skin data collected by the Precision Healing platform will aid clinicians in accurately diagnosing the wound condition and ultimately leading to the development of clinical practice guidelines used to treat the wound, which will also then further lead to increasing healing rates and decreasing costs. This technology platform is expected to allow the company to develop ongoing evidence-based treatment algorithms as more wound and skin conditions are analyzed. The imager and biomarker assay 510 case are being prepared for submission to the FDA and are expected to be filed before the end of Q3 2022. Now I'll ask Zach Fleming to discuss our accomplishments in more detail.