Sanara MedTech Inc.

Good morning and welcome to the Sonara MedTech 3rd Quarter 2024 Earnings Conference Call. The company issued its earnings release yesterday and will post today's supplemental deck on the Investor Relations page on the company's website. With us today are Ron Nixon, Executive Chairman and CEO, Mike McNeil, Chief Financial Officer, Seth Yon, President, Commercial, and Sam Mopala, who leads Tissue Health Plus. Please note that 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 differ materially from those projected or implied by forward-looking statements, please see the risk factors set forth in the company's most recent annual report on Form 10-K, as supplemented by the risk factors in the company's most recent quarterly report on Form 10-Q. Also, this conference call, the earnings release, and supplemental deck reference certain non-GAAP measures. In that regard, please refer to the reconciliation of these measures in the earnings materials that are available on our website. Now, I'd like to turn the call over to Ron Nixon.

Thank you, Operator, and good morning, everyone. During the third quarter of 2024, the company generated $21.7 million in net revenue. This was an increase of 35% year-over-year and represented our 12th consecutive year record revenue quarter. The strong sales performance in Q3 is a testament to the hard work and dedication of our entire organization in executing our strategy. We remain focused on continuing our growth and delivering exceptional value to both our customers and shareholders. Third quarter also achieved improved adjusted EBITDA results, scenario generated adjusted EBITDA of $800,000 during the third quarter of 2024 compared to adjusted EBITDA of $300,000 for the same period in 2023. In Q2, we began reporting additional financial performance metrics of our surgical division and Tissue Health Plus as separate business segments. This transition to segment reporting better aligns with how our leadership team views the business. Our surgical segment generated a $200,000 net loss in the third quarter and a net loss of 2.9 million year-to-date through September 30th of 2024. On a segmented EBITDA basis, the surgical segment generated 2.6 million and 5.1 million of segmented EBITDA during the third quarter and year-to-date through September 30th, 2024, respectively. We continue to see strong growth opportunities for both segments, which Sam and and Seth will discuss in further detail. We plan to continue investing in THP technology platform and related infrastructure through the expected commercial launch in mid-2025. And as a reminder, we are pursuing like-minded financial partners that will bring value to the strategy, including capital. In September, we invested $5 million in exchange for an ownership percentage of approximately 6.6 in Chemo Mouthpiece LLC, which owns and manufactures a 510K cleared cryotherapy device designed to reduce the incidence and severity of chemotherapy-induced oral mucositis. In connection with the investment, we announced the execution of an exclusive U.S. distribution agreement through RJV with Ipu Systems for chemo mouthpiece. This product aligns well with Senera's wound and skin care strategy, which includes our Licensed College of Peptides from Tufts University with one particular peptide focused on radiation dermatitis. SI Healthcare Technologies LLC, a joint venture entity, owned 50-50 by Senera and Ipju System and will be an exclusive distributor of the chemotherapy kits by our partner, Ipju System. We look forward to working with Infosystem team commercializing this product in 2025. I'll now turn it over to Seth to discuss our surgical business results and momentum.

Thank you, Ron. As of the end of the third quarter, our products had been sold in over 1,200 hospitals across 34 states and the District of Columbia during the trembling 12 months and were contracted or approved to be sold in more than 4,000 facilities. We currently have selling agreements with over 300 distributors representing 2,900 plus potential sellers. Looking at the growth of the territories and the facilities in which we sell, in Q3, our products were sold into over 900 facilities compared to over 600 facilities in the third quarter of 2023. Sales of our soft tissue products grew from 13.6 million in the third quarter of 2023 to 18.9 million in the third quarter of 2024. Sales of bone fusion products grew from 2.3 million in the third quarter of 2023 to 2.8 million in the third quarter of 2024. We continue to build momentum within our network of over 4,000 contracted or approved facilities, diligently working to expand our surgeon user base in our core orthopedic and spine areas. We have also intensified our focus on non-traditional users to drive growth in both active and new accounts. Expanding into additional geography remains a top priority for our regional sales managers, particularly through the engagement of key distribution partners. The commercial team is working closely with our operations team to constantly enhance our sales analytics, which will uncover greater opportunities through a strategic focus across all the areas that we serve. In addition to our organic growth, we are regularly evaluating opportunities for surgical M&A and partnerships Our management team sees synergistic potential transactions as a key growth driver that complements our strong organic growth. With that, I'll turn it over to Sam to provide an update on Tissue Health Plus.