Sanara MedTech Inc.

Welcome to the Sonara MedTech Inc. second quarter results and business updates. At this time, all participants are in a listen-only mode. 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. Please note this conference is being recorded. I will now turn the conference over to your host, Callan Nichols, Director of Investor Relations at Sonara MedTech. Callan, 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 ended June 30th, 2024. We issued our earnings release yesterday morning, and I would like to highlight that we've 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-Q for the quarter ended June 30th, 2024 are also available on this page. We will reference this information in our remarks today. With us today are Ron Nixon, our Executive Chairman and CEO, Mike McNeil, our Chief Financial Officer, Seth Yohn, our President of Commercial, Jake Waldrip, our Chief Operating Officer, and Sam Upala, who leads Tissue Health Plus. Please note that certain statements in this conference call and our press release and 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 differ materially from those projected or implied by forward-looking statements, please see the risk factors set forth in our most recent annual report on Form 10-K, as supplemented by the risk factors in our most recent quarterly report on Form 10-Q. Also, this conference call, our earnings release, and our supplemental deck reference certain non-GAAP measures. In that regard, I direct you to the reconciliation of these measures and the earnings materials that are available on our website. Now I'd like to turn the call over to Ron Nixon.

Thank you, Kellen, and good morning, everyone. During the second quarter of 2024, the company generated $20.2 million in revenue. This is our 11th consecutive record revenue quarter. I'd like to take a moment to recognize our entire team. including surgical sales, clinical, R&D, customer service, marketing, and finance, who continued to do an outstanding job contributing to our record growth strategy. In the second quarter, Senara generated a net loss of $3.5 million and positive adjusted EBITDA of $600,000. Adjusted EBITDA is net of expenses that we view as non-core in our operations, including $900,000 of separation costs related to our former CEO, as well as $400,000 in legal and diligence expenses for prospective acquisitions and partnerships. Prior period have been recast in our earnings press release to reflect this change in how we calculated adjusted EBITDA. Mike will go into this in more detail, but in Q2, we began reporting additional financial performance metrics of our surgical business and tissue health plus segment as separate segments that we could account for. Following the recent change in our CEO position, this transition to segment reporting better aligns with how I view the business. Our surgical segment generated a $2.2 million net loss in the second quarter and a $2.7 million net loss in the first half of 2024. On a segmented EBITDA basis, the surgical segment generated $1.4 million and $2.5 million of segmented EBITDA during the second quarter and first half of 2024, respectively. We continue to see strong growth opportunities for both segments, which Seth and Sam will discuss in further detail shortly. During the second half of 2024, we expect to invest an additional $4 to $5 million to build out the THP strategy in anticipation of a commercial launch in the second half of 2025. which Sam will detail later in the presentation. I'll now turn it over to Seth to discuss our surgical business results and momentum in that segment.