Sanara MedTech Inc. Q4 FY2024 earnings call

• Ron Nixon provided an overview of full-year 2024 financials, noting net revenue growth and adjusted EBITDA improvement.
• Seth Yon discussed Sanara Surgical's fourth quarter revenue performance, with 49% y-o-y growth, and commercial progress like expanding sales coverage to over 350 distributor partners and over 1,300 facilities.
• Sam Muppalla detailed Tissue Health Plus's 2024 initiatives: developing clinical models for wound care, building technology platform, and preparing for 2025 pilot launch.
• Tyler Palmer discussed the partnership with Biomimetic Innovations, including exclusive license and distribution agreement for OsStic.
• Elizabeth Taylor reviewed fourth quarter financial results, with gross profit up 51% to $24.1 million, and discussed 2025 focus on improving Sanara Surgical's profitability and investing in Tissue Health Plus for Q2 pilot launch.

For the full-year 2024, Sanara MedTech generated net revenue of $86.7 million, a 33% year-over-year growth. The self-tissue products segment saw a 39% y-o-y increase to $76.1 million, contributing a significant portion. Bone fusion products grew 6% y-o-y to $10.5 million. In the fourth quarter, net revenue was $26.3 million, a 49% y-o-y growth. Soft tissue repair products increased 56% y-o-y to $23.5 million, and bone fusion products rose 8% y-o-y to $2.8 million. Sanara Surgical segment had adjusted EBITDA of $9.1 million in 2024, up 73% y-o-y. Tissue Health Plus segment was in investment phase for commercialization.

• 2025 plans include enhancing sales coverage and increasing surgeon adoption for Sanara Surgical.
• Tissue Health Plus expects to launch first pilot with wound care provider group in Q2 2025, with investment in H1 2025 between $7.5M-$10M.
• Pursuing financial partners for Tissue Health Plus strategy, with sufficient capital from existing cash, expected borrowings, and surgical segment cash generation.

Q: Run through ChemoMouthpiece and the game plan for 2025?

A: Ron Nixon stated ChemoMouthpiece is being introduced, waiting on health economics study, clinical study, and working on commercial pay contracts.

Q: How to judge successful THP pilot launch in 2Q?

A: Sam Muppalla said success would be integrating with systems, standardizing clinical workflows, and improving documentation quality for reimbursement.

Q: In Tissue Health Plus segment, how should we expect a third-party investment to potentially offset spending?

A: Sam Muppalla mentioned they are seeking financial partners to offset burn and gain strategic advantage, with discussions underway with several parties