Sanara MedTech Inc. Announces Fourth Quarter and Full Year 2023 Results FORT WORTH, TX / GlobeNewswire /

MedTech Inc. Announces Fourth Quarter and Full Year 2023 Results

WORTH, TX / GlobeNewswire / March 25, 2024 / 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, 2023.

Fleming, Sanara's CEO, stated, "During 2023, the Sanara team achieved several key strategic and operational milestones that

position the Company for continued strong growth in 2024. These achievements included the acquisition of key assets related to CellerateRX

Surgical Powder and Gel ("CellerateRX") and the launch of our new ALLOCYTE Plus Advanced Viable Bone Matrix product

("ALLOCYTE Plus") while also commercializing BIASURGE Advanced Surgical Solution ("BIASURGE"). I am grateful

to our entire team for their dedication to advancing our goal of developing and commercializing technologies that improve outcomes and

reduce costs throughout the U.S."

and Operational Highlights in the Fourth Quarter 2023

Year 2023 Sales Analysis

2023, Sanara had sales growth across all major product lines. The Company continues to hire experienced and talented sales managers to

drive growth in new territories while also working to increase product sales in existing accounts and expand usage in new specialty areas.

the year ended December 31, 2023, Sanara generated net revenues of $65.0 million compared to net revenues of $45.8 million for the year

ended December 31, 2022, a 42% increase from the prior year. The higher net revenue in 2023 was primarily due to increased sales of soft

tissue repair products (CellerateRX, FORTIFY TRG Tissue Repair Graft, FORTIFY FLOWABLE Extracellular Matrix, and TEXAGEN

Amniotic Membrane Allograft) and bone fusion products (BiFORM Bioactive Moldable Matrix, AMPLIFY Verified Inductive Bone

Matrix, and ALLOCYTE ). This was a result of our increased market penetration, geographic expansion and our continuing strategy to

expand our independent distribution network in both new and existing U.S. markets.

reported a loss before income taxes of $4.4 million for the year ended December 31, 2023, compared to a loss before income taxes of $13.9

million for the year ended December 31, 2022. The lower loss in 2023 was primarily due to increased gross profit and changes in fair

value of earnout liabilities, partially offset by higher SG&A costs, higher R&D expenses, and higher amortization of our acquired

intangible assets. For the year ended December 31, 2023, Sanara had a net loss of $4.4 million, compared to a net loss of $8.1 million

for the year ended December 31, 2022. The lower net loss in 2023 was primarily achieved by additional gross profit realized on higher

Company generated Adjusted EBITDA of negative $0.3 million for the year ended December 31, 2023, compared to Adjusted EBITDA of negative

$7.5 million for the year ended December 31, 2022.

Adjusted EBITDA is a non-GAAP financial measure. See the discussion below under the heading "Use of Non-GAAP Financial Measures"

and the reconciliations at the end of this release for additional information.

of Non-GAAP Financial Measures

supplement the Company's financial information presented in accordance with generally accepted accounting principles in the United

States ("GAAP"), we present certain non-GAAP financial measures in this press release and on the related teleconference call,

including Adjusted EBITDA. The Company's management uses these non-GAAP financial measures, both internally and externally, to

assess and communicate the financial performance of the Company. The Company defines Adjusted EBITDA as net loss excluding interest expense/income,

provision/benefit for income taxes, depreciation and amortization, non-cash stock compensation expense, change in fair value of earnout

liabilities, and gains/losses from the disposal of property and equipment. The Company's believes Adjusted EBITDA is useful to

investors because it facilitates comparisons of its core business operations across periods on a consistent basis. Accordingly, the Company

adjusts for items such as change in fair value of earnout liabilities when calculating Adjusted EBITDA because the Company believes that

it is not related to the Company's core business operations.

Company's non-GAAP financial measures are not in accordance with, nor an alternative for, measures conforming to GAAP and may be

different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any

comprehensive set of accounting rules or principles. The Company continues to provide all information required by GAAP, but it believes

that evaluating its ongoing operating results may not be as useful if an investor or other user is limited to reviewing only GAAP financial

measures. The Company does not, nor does it suggest that investors should, consider these non-GAAP financial measures in isolation from,

or as a substitute for, financial information prepared in accordance with GAAP. Material limitations associated with the use of such

measures include that they do not reflect all costs included in operating expenses and may not be comparable with similarly named financial

measures of other companies. Furthermore, these non-GAAP financial measures are based on subjective determinations of management regarding

the nature and classification of events and circumstances. The Company presents these non-GAAP financial measures to provide investors

with information to evaluate the Company's operating results in a manner similar to how management evaluates business performance.

To compensate for any limitations in such non-GAAP financial measures, management believes that it is useful in understanding and analyzing

the results of the business to review both GAAP information and the related non-GAAP financial measures. Whenever the Company uses a

non-GAAP financial measure, it provides a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial

measure. Investors are encouraged to review and consider these reconciliations.

will host a conference call on Tuesday, March 26, 2024, 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 186401. A telephonic replay of the conference call will

be available through Tuesday, April 9, 2024, by dialing 877-481-4010 (international callers: 919-882-2331) and entering the replay passcode:

live webcast of Sanara's conference call will be available under the Investor Relations section of the Company's website,

www.SanaraMedTech.com. A one-year online replay will be available after the conclusion of the live broadcast.

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 ACTIGEN Verified Inductive Bone Matrix, ALLOCYTE Plus Advanced Viable Bone Matrix, BiFORM Bioactive Moldable

Matrix, TEXAGEN Amniotic Membrane Allograft, and BIASURGE Advanced Surgical Solution to the surgical market. In addition, the

following products are sold in the wound care market: BIAK S Antimicrobial Skin and Wound Cleanser, BIAK S Antimicrobial

Wound Gel, BIAK S 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.

about Forward-Looking Statements

statements in this press release that do not constitute historical facts are "forward-looking statements," within the meaning

of and subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. These statements may be identified

by terms such as "aims," "anticipates," "believes," contemplates," "continue,"

"could," "estimates," "expect," "forecast," "guidance," "intend,"

"may," "plan," "possible," "potential," "predicts," "preliminary,"

"projects," "seeks," "should," "targets," "will" or "would,"

or the negatives of these terms, variations of these terms or other similar expressions. These forward-looking statements include, among

others, statements regarding the biocompatibility and efficacy of BIASURGE , the potential benefits created by the acquisition of

certain assets related to the Company's collagen products business, the anticipated impact of such acquisition on the Company's

business and future financial and operating results, the Company's ability to develop and commercialize the new collagen-based

products currently under development, including the manufacturing, distribution, marketing and sale of such products, the Company's

ability to maintain or replace the manufacturing and distribution process of the sellers in the acquisition, including relationships

with vendors, the development of new products, the timing of commercialization of our products, the regulatory approval process and expansion

of the Company's business in telehealth and wound care. These items involve risks, contingencies and uncertainties such as the

extent of product demand, market and customer acceptance, the effect of economic conditions, competition, pricing, uncertainties associated

with the development and process for obtaining regulatory approval for new products, the ability to consummate and integrate acquisitions,

and other risks, contingencies and uncertainties detailed in the Company's SEC filings, which could cause the Company's actual

operating results, performance or business plans or prospects to differ materially from those expressed in, or implied by these statements.

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

Nichols, Director of Investor Relations

MEDTECH INC. AND SUBSIDIARIES

MEDTECH INC. AND SUBSIDIARIES

STATEMENTS OF OPERATIONS