Sanara MedTech Inc. Announces Third Quarter 2023 Results FORT WORTH, TX / GlobeNewswire /

MedTech Inc. Announces Third Quarter 2023 Results

WORTH, TX / GlobeNewswire / November 13, 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 ended

Fleming, Sanara's CEO stated, "Our third quarter performance included another record sales quarter as well as a narrowing

net loss and positive Adjusted EBITDA. In addition, we completed the acquisition of certain assets related to our collagen business,

which we believe is critical to our efforts to develop next generation collagen products while also materially adding to our bottom line

by eliminating the royalties we paid on CellerateRX Surgical Powder and Gel ("CellerateRX") and HYCOL

Hydrolyzed Collagen ("HYCOL"). After quarter end, we had our first sales of both ALLOCYTE Plus Advanced

Viable Bone Matrix ("ALLOCYTE Plus") and BIASURGE Advanced Surgical Solution ("BIASURGE"). We believe

these two products will be important to our future growth plans while helping diversify our revenue mix and providing patients and doctors

with options that can improve outcomes while reducing healthcare expenditures."

Quarter 2023 Strategic and Operational Highlights (Unaudited)

revenues continued to grow, however the rate of quarter-over-quarter growth slowed due to unique in-market challenges. The Company is

leveraging field intelligence and data analytics to implement appropriate adjustments to sales force deployment and facility penetration.

For the three months ended September 30, 2023, the Company

generated net revenue of $16.0 million compared to net revenue of $13.0 million for the three months ended September 30, 2022, a 23%

increase from the prior year period. For the nine months ended September 30, 2023, the Company generated net revenue of $47.3 million

compared to net revenue of $30.5 million for the nine months ended September 30, 2022, a 55% increase from the prior year period. The

higher net revenue for the three and nine months ended September 30, 2023 was primarily due to increased sales as a result of the Company's

increased market penetration and geographic expansion, additional revenues as a result of the Scendia acquisition and the Company's

continuing strategy to expand its independent distribution network in both new and existing U.S. markets. The Company's sales growth

continued to be negatively impacted by supply issues related to its ALLOCYTE Advanced Cellular Bone Matrix product in

the third quarter of 2023. However, subsequent to the end of the quarter, the Company brought on an alternative supplier and expanded

the ALLOCYTE product line with the release of ALLOCYTE Plus. Sanara currently has

a sufficient supply to meet currently expected demand and believes it has measures in place to be able to regularly stock the product

Company had a loss before income taxes of $1.1 million for the three months ended September 30, 2023, compared to a loss before income

taxes of $3.2 million for the three months ended September 30, 2022. For the nine months ended September 30, 2023, the Company had a

loss before income taxes of $4.2 million, compared to a loss before income taxes of $9.8 million for the nine months ended September

30, 2022. The lower loss for the three and nine months ended September 30, 2023 was due to operating expenses increasing at a slower

rate than net sales in addition to the benefit recorded as a result of the change in fair value of earnout liabilities. For the three

months ended September 30, 2023, the Company had a net loss of $1.1 million, compared to a net loss of $1.5 million for the three months

ended September 30, 2022. For the nine months ended September 30, 2023, the Company had a net loss of $4.2 million, compared to a net

loss of $3.9 million for the nine months ended September 30, 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 for

term loan, debt issuance cost amortization, accretion of finance liabilities, provision/benefit for income taxes, depreciation and amortization,

non-cash share-based 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, November 14, 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 780032. A telephonic replay of the conference call will

be available through Tuesday, November 28, 2023, by dialing 877-481-4010 (international callers: 919-882-2331) and entering the replay

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 ACTIGENTM 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. 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.

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 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