Sanara MedTech Inc.

Greetings and welcome to the Sonara MedTech Incorporated fourth quarter and 2022 full year results and business update call. At this time, all participants are in a listen only mode and a question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. I will now turn the conference over to your host, Mr. Callan Nichols. You may begin.

Thank you, and good morning, everyone. I'd like to welcome you to Cenera MedTech's earnings conference call for the quarter and year ended December 31st, 2022. We issued our earnings release yesterday afternoon, and I would like to highlight that we have posted today's deck on the investor relations page of our website. This supplemental deck, as well as a copy of the earnings release and form 10-K for the year ended December 31st, 2022, are available on this page. We will 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 McNeil, 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 risk 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. Now I'd like to turn the call over to Ron.

Thank you, Kellen, and good morning, everyone. In 2022, Scenera generated $45.8 million in net revenue, representing a 90% increase from the prior year period. Fourth quarter of 2022 was another record quarter for Scenera, as well as for our historical business lines prior to acquiring Scendia. In the fourth quarter, the company generated $15.3 million in net revenue, and it was the first quarter during which the company generated over $5 million in net revenue in a single month. We continue to see strong growth and accelerate sales, as well as the sales from the products we licensed from Koch Biotech. The sales at Cyndia were flat from Q3 to Q4 due to a stock out of our Alisac product, which we will discuss in more detail later. For the year, our net loss was $8.1 million in 2022 compared to $8 million in 2021. Mike will go into further detail, but the company had a loss before income taxes of 13.9 million compared to loss before income taxes of 8.0 million in 2021. The higher loss in 2022 was due to increased SG&A costs, higher R&D expenses, the loss on the disposal of the investment related to the dissolution of Sunera Pulsar, and higher amortization of our acquired intangible assets related to the acquisitions of Precision Healing and Symbia. Despite the record quarter in a year, our sales were impacted in Q4 by a stock out of our Allisac product, which began in late Q3, due to a shortage of the source material. We're expecting improvements in our ability to source this product from our suppliers, but we do not anticipate a full resolution until the second half of the year. In December 2022, we dissolved Scenera Pulsar and ceased marketing the Scenera Pulsar II AWI wound debridement system. When we formed Senara Pulsar, we believed the Pulsar products would provide clinicians with a novel debridement solution. We also believed that the Pulsar product would receive an expanded reimbursement code by use of all clinician types. Ultimately, we decided we did not receive an additional reimbursement code, which limited the adoption and sales of the Pulsar products. In Q4, the submission of our precision healing imager 510K was delayed due to unexpected electrical and software issues, as well as increased product validation testing, which we believe provides further validation related to FDA regulatory testing requirements following our submission. The 510K was filed subsequent to the end of the quarter on March 16, 2023. Zach will go into more detail, but we continue to be focused on the commercial development of our imager. LFA and the comprehensive Wunderm strategy. It's an area of significant investment for the company that we believe will have a competitive differentiator for the company and should be well received by the market. Subsequent to the end of the quarter, we entered into a settlement agreement with Ken Fitzgerald for an ATM offering of our common stock equity. We've entered into this agreement for two purposes. The first is raise capital for opportunistic acquisitions and partnerships, and the second is to increase the liquidity of our stock. We currently intend to use the net proceeds we received from this offering to fund potential acquisitions, further development of our products, services, and technology pipeline, and clinical studies, expand our sales force, and for general corporate purposes. Now it's Zach Clemming to discuss our business in more detail.