# EDGAR Filing Document

**Accession Number:** 0000714256
**File Stem:** 0001493152-23-008250
**Filing Date:** 2023-3
**Character Count:** 16277
**Document Hash:** 77c4f8d41da24e6376dc7d9d99e95715
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-23-008250.hdr.sgml**: 20230320

**ACCESSION NUMBER**: 0001493152-23-008250

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 23

**CONFORMED PERIOD OF REPORT**: 20230320

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230320

**DATE AS OF CHANGE**: 20230320

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Sanara MedTech Inc.
- **CENTRAL INDEX KEY:** 0000714256
- **STANDARD INDUSTRIAL CLASSIFICATION:** ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES [3842]
- **IRS NUMBER:** 592220004
- **STATE OF INCORPORATION:** TX
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-39678
- **FILM NUMBER:** 23746624

**BUSINESS ADDRESS:**
- **STREET 1:** 1200 SUMMIT AVE
- **STREET 2:** SUITE 414
- **CITY:** FORT WORTH
- **STATE:** TX
- **ZIP:** 76102
- **BUSINESS PHONE:** 817-529-2300

**MAIL ADDRESS:**
- **STREET 1:** 1200 SUMMIT AVE
- **STREET 2:** SUITE 414
- **CITY:** FORT WORTH
- **STATE:** TX
- **ZIP:** 76102

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** WOUND MANAGEMENT TECHNOLOGIES, INC.
- **DATE OF NAME CHANGE:** 20080611

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MB SOFTWARE CORP
- **DATE OF NAME CHANGE:** 19960805

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** INAV TRAVEL CORPORATION
- **DATE OF NAME CHANGE:** 19920703

?xml version="1.0" encoding="utf-8"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the**

**Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): March 20, 2023

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| |
|:---|
| **SANARA MEDTECH INC.** |
| (Exact name of registrant as specified in its charter) |

---

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| | | |
|:---|:---|:---|
| **Texas** | **001-39678** | **59-2219994** |
| (State or other jurisdiction | (Commission | (IRS Employer |
| of incorporation) | File Number) | Identification No.) |

---

---

| | |
|:---|:---|
| **1200 Summit Avenue, Suite 414** <br> **Fort Worth, Texas** | **76102** |
| (Address of principal executive offices) | (Zip Code) |

---

Registrant's telephone number, including area code: **(817) 529-2300**

(Former name or former address, if changed since last report)

**Not Applicable**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, $0.001 par value | SMTI | The Nasdaq Capital Market |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 2.02** **Results of Operations and Financial Condition.**

On March 20, 2023, Sanara MedTech Inc. (the "Company") issued a press release announcing its financial results for the quarter and year ended December 31, 2022. A copy of the Company's press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.

In addition, the Company is furnishing a copy of an earnings presentation (the "Presentation") that the Company intends to use, in whole or in part, in one or more meetings with investors or analysts, including in a webcast on March 21, 2023 at 9:00 a.m. (Eastern Time). A copy of the Presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated by reference herein.

The information in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 furnished hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth in such filing.

**Item 9.01** **Financial Statements and Exhibits.**

**(d) Exhibits** 

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| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | [Press Release issued March 20, 2023 (furnished pursuant to Item 2.02).](ex99-1.htm) |
| 99.2 | [Investor Presentation (furnished pursuant to Item 2.02).](ex99-2.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| Date: | March 20, 2023 |  |  |
|  |  | **Sanara MedTech Inc**. | **Sanara MedTech Inc**. |
|  |  | By: | */s/ Michael D. McNeil* |
|  |  |  | Name: Michael D. McNeil |
|  |  |  | Title: Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![](ex99-1_001.jpg)

**Sanara MedTech Inc. Announces Fourth Quarter and Full Year 2022 Results**

**FORT WORTH, TX / GlobeNewswire / March 20, 2023 / Sanara MedTech Inc**. Based in Fort Worth, Texas, Sanara MedTech Inc. ("Sanara," the "Company," "we," "our" or "us") (NASDAQ: SMTI), a medical technology company focused on developing and commercializing transformative technologies to improve clinical outcomes and reduce healthcare expenditures in the surgical, chronic wound and skincare markets, announced today its strategic, operational and financial results for the quarter and full year ended December 31, 2022.

Zach Fleming, Sanara's CEO, stated, "In 2022 we continued to build on the success we have had with our CellerateRX product line by expanding the geographic coverage of our sales team, increasing our average sales per facility, and offering an expanded line of products. Our record sales results in both the fourth quarter and the full year are the result of our team's continued market penetration and the efficacy and value that we believe our products offer to patients and providers."

**Fourth Quarter 2022 Strategic and Operational Highlights**

● Generated over $5 million of revenue in a single month for the first time

● During the trailing twelve-month period, CellerateRX was sold in over 700 facilities across 29 states

● The Company announced a partnership with InfuSystem focused on delivering a complete wound care solution targeted at improving patient outcomes, lowering the cost of care, and increasing patient and provider satisfaction. The Company believes that by pairing Sanara's product line and deep expertise in wound care with InfuSystem's existing negative pressure wound therapy business, including sales, distribution, clinical support, and revenue cycle capabilities, it will be able to offer a compelling solution to a broader patient universe, offering significant value and improved outcomes for patients, providers, and payors.

● The Company submitted to the FDA a 510(k) premarket notification for BIASURGE, the Company's sterile BIAKŌS™ product for use in surgical settings on November 4, 2022

● Subsequent to the end of the fourth quarter 2022, the Company entered into a sales agreement with Cantor Fitzgerald & Co. for an "ATM" offering of the Company's stock. The Company entered into this agreement for two purposes. The first is to raise capital for opportunistic partnerships and acquisitions and the second is to increase the liquidity of its stock.

● Subsequent to the end of the of the fourth quarter 2022 on March 16, 2023, the Company submitted to the FDA a 510(k) premarket notification for its Precision Healing Multispectral Imager

**Full Year 2022 Consolidated Financial Results** 

●  ***Net Revenues.*** For the year ended December 31, 2022, we generated net revenues of $45.8 million compared to net revenues of $24.1 million for the year ended December 31, 2021, a 90% increase from the prior year. Our 2022 net revenues included $6.0 million of Scendia sales. The higher net revenues in 2022 were primarily due to increased sales of surgical wound care products as a result of our increased market penetration and geographic expansion, additional revenues as a result of the Scendia acquisition and our continuing strategy to expand our independent distribution network in both new and existing U.S. markets.

●  ***Cost of goods sold*.** Cost of goods sold for the year ended December 31, 2022, was $6.4 million, compared to costs of goods sold of $2.3 million for the year ended December 31, 2021. The higher cost of goods sold was due to higher organic sales volume in 2022 and our acquisition of Scendia, which added $2.0 million of cost of goods sold during 2022. Gross margins were approximately 86% and 90% for the years ended December 31, 2022 and 2021, respectively. The lower gross margins in 2022 were primarily due to lower margins realized on sales of Scendia products.

●  ***Selling, general and administrative ("SG&A") expenses*.** SG&A expenses for the year ended December 31, 2022, were $46.0 million compared to SG&A expenses of $28.1 million for the year ended December 31, 2021. Our 2022 SG&A expenses included $2.9 million of costs related to Scendia operations. The higher SG&A expenses in 2022 were primarily due to higher direct sales and marketing expenses, which accounted for approximately $13.6 million, or 76% of the increase compared to prior year. The higher direct sales and marketing expenses were primarily attributable to an increase in sales commissions of $9.6 million as a result of higher product sales and $2.7 million of increased costs as a result of sales force expansion and operational support. Costs related to travel and in-person promotional activities increased by $0.9 million in 2022 compared to 2021 due to the resumption of many in-person activities that were cancelled or postponed in 2021 as a result of the COVID-19 pandemic. The increase in 2022 SG&A expenses was also partly attributable to increased noncash equity compensation and higher payroll costs related to the mid-year addition of the Rochal workforce in July 2021, the Precision Healing workforce in April 2022 and the Scendia workforce in July 2022. We expect our SG&A expenses to continue to decline as a percentage of net revenues as our sales growth outpaces the costs of sales force expansion and corporate overhead.

●  ***Research and development ("R&D") expenses.*** R&D expenses for the year ended December 31, 2022, were $3.4 million compared to $0.6 million for the year ended December 31, 2021. R&D expenses for 2022 included approximately $2.5 million of costs related to the newly acquired Precision Healing diagnostic imager and lateral flow assay for assessing patient wound and skin conditions. The higher R&D expenses in 2022 were also partly due to costs associated with several new development projects for our currently licensed products.

●  ***Loss before income taxes.*** We had a loss before income taxes of $13.9 million for the year ended December 31, 2022, compared to a loss before income taxes of $8.0 million for the year ended December 31, 2021. The higher loss in 2022 was due to increased SG&A costs, higher R&D expenses, the loss on disposal of investment related to the dissolution of Sanara Pulsar and higher amortization of acquired intangible assets.

●  ***Net loss*** . For the year ended December 31, 2022, we had a net loss of $8.1 million, compared to a net loss of $8.0 million for the year ended December 31, 2021.

The Company will host a conference call on Tuesday, March 21, 2023, at 9:00 a.m. Eastern Time. The toll-free number to call for this teleconference is 888-506-0062 (international callers: 973-528-0011) and the access code is 222930. A telephonic replay of the conference call will be available through Tuesday, April 4, 2023, by dialing 877-481-4010 (international callers: 919-882-2331) and entering the replay passcode: 47808.

A live <u>webcast</u> of Sanara's conference call will be available under the Investor Relations section of the Company's website, <u>www.SanaraMedTech.com</u>. A one-year online replay will be available after the conclusion of the live broadcast.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of securities, in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

 ****

**About Sanara MedTech Inc.**

With a focus on improving patient outcomes through evidence-based healing solutions, Sanara MedTech Inc. markets, distributes and develops surgical, wound and skincare products for use by physicians and clinicians in hospitals, clinics and all post-acute care settings and offers wound care and dermatology virtual consultation services via telemedicine. Sanara's products are primarily sold in the North American advanced wound care and surgical tissue repair markets. Sanara markets and distributes CellerateRX® Surgical Activated Collagen®, FORTIFY TRG® Tissue Repair Graft and FORTIFY FLOWABLE® Extracellular Matrix as well as a portfolio of advanced biologic products focusing on AMPLIFY™ Verified Inductive Bone Matrix, ALLOCYTE™ Advanced Cellular Bone Matrix, BiFORM® Bioactive Moldable Matrix and TEXAGEN® Amniotic Membrane Allograft to the surgical market. In addition, the following products are sold in the wound care market: BIAKŌS™ Antimicrobial Skin and Wound Cleanser, BIAKŌS™ Antimicrobial Wound Gel, BIAKŌS™ Antimicrobial Skin and Wound Irrigation Solution and HYCOL® Hydrolyzed Collagen. Sanara's pipeline also contains potentially transformative product candidates for mitigation of opportunistic pathogens and biofilm, wound re-epithelialization and closure, necrotic tissue debridement and cell compatible substrates. The Company believes it has the ability to drive its pipeline from concept to preclinical and clinical development while meeting quality and regulatory requirements. Sanara is constantly seeking long-term strategic partnerships with a focus on products that improve outcomes at a lower overall cost. In addition, Sanara is actively seeking to expand within its six focus areas of wound and skin care for the acute, post-acute, and surgical markets. The focus areas are debridement, biofilm removal, hydrolyzed collagen, advanced biologics, negative pressure wound therapy products and the oxygen delivery system segment of the wound and skincare markets.

**Information about Forward-Looking Statements**

All forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to revise any of these statements to reflect the future circumstances or the occurrence of unanticipated events, except as required by applicable securities laws.

**Investor Contact:**

Callon Nichols, Director of Investor Relations

713-826-0524

<u>CNichols@sanaramedtech.com</u>

**SOURCE: Sanara MedTech Inc**.

## Exhibit 99.2

**Exhibit 99.2**

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