Sanara MedTech Inc. Reports Fourth Quarter and Full Year 2024 Financial Results (Unaudited) Q4 Net Revenue Increased 49% Year-Over-Year; 2024 Net Revenue Increased 33% Year-Over-Year

MedTech Inc. Reports Fourth Quarter and Full Year 2024 Financial Results (Unaudited)

Net Revenue Increased 49% Year-Over-Year; 2024 Net Revenue Increased 33% Year-Over-Year

WORTH, TX, March 25, 2025 (GLOBE NEWSWIRE) - 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, today

reported its financial results for the fourth quarter and full year ended December 31, 2024.

Quarter 2024 Financial Summary

Year 2024 Financial Summary

Adjusted EBITDA is a non-GAAP financial measure. See the discussion and the reconciliations at the end of this release for additional

Quarter 2024 and Recent Operational Announcements

team delivered an impressive conclusion to 2024, with net revenue growth in the fourth quarter of 49% year-over-year, fueled primarily

by sales of soft tissue products in our Sanara Surgical segment," stated Ron Nixon, Sanara's Executive Chairman and CEO.

"Throughout 2024, our Sanara Surgical commercial team achieved strong execution with respect to our growth strategy, expanding

our coverage and penetration of the markets we serve. We also made significant progress in developing the technology platform and infrastructure

for Tissue Health Plus, our value-based wound care program. In parallel, we continued our efforts to evaluate and pursue new partnerships,

enhance our intellectual property portfolio and develop our product pipeline, while securing a new credit facility to provide increased

financial flexibility as we pursue our long-term strategy."

Nixon continued: "Looking ahead, our team remains focused on driving revenue growth and improving profitability in our Sanara Surgical

segment, while continuing to invest in our Tissue Health Plus segment. In 2025, we remain focused on improving the profitability in our

Sanara Surgical segment, while continuing to invest in our Tissue Health Plus segment in preparation for a planned launch of our first

pilot program with a wound care provider group during the second quarter. Specifically, we expect our continued investment in Tissue

Health Plus over the first half of 2025 to be between $7.5 to $10.0 million. Importantly, we are pursuing financial partners to invest

in the execution of our Tissue Health Plus strategy. We look forward to expanding awareness and adoption of our technologies this year,

with the goal of improving patient outcomes, reducing healthcare costs and enhancing the long-term value of our organization."

Quarter and Full Year 2024 Revenue

following tables summarize revenue streams from product sales and royalties for the three and twelve months ended December 31, 2024 and

Quarter 2024 Financial Results

revenue for the fourth quarter of 2024 was $26.3 million, compared to $17.7 million for the fourth quarter of 2023, an increase of $8.6

million, or 49%, year-over-year. The increase in net revenue was driven by an increase of $8.5 million, or 56%, in sales of soft tissue

repair products and an increase of $0.2 million, or 8%, in sales of bone fusion products.

increase in sales of soft tissue repair products was driven primarily by increased demand for CellerateRX Surgical Activated

Collagen ("CellerateRX Surgical") and, to a lesser extent, BIASURGE Advanced Surgical Solution

("BIASURGE"). Fourth quarter 2024 BIASURGE sales were driven, in part, by approximately $1.8 million of revenue

that we believe is attributable to supply chain issues and shortages of intravenous fluids and saline solutions experienced by the broader

industry due to Hurricane Helene.

profit for the fourth quarter of 2024 was $24.1 million, compared to $15.9 million for the fourth quarter of 2023, an increase of $8.2

million, or 51%, year-over-year. The increase in gross profit was driven by increased sales of soft tissue repair and bone fusion products.

Gross margin was 91% of net revenue for the fourth quarter of 2024, compared to 90% of net revenue for the fourth quarter of 2023. The

increase in gross margin was driven by increased sales of soft tissue repair products, particularly CellerateRX Surgical

expenses for the fourth quarter of 2024 were $24.4 million, compared to $16.1 million for the fourth quarter of 2023, an increase of

$8.3 million, or 51%, year-over-year. The increase in operating expenses was driven by an increase of $6.1 million, or 37%, in selling,

general and administrative ("SG&A"), an increase of $1.8 million, or 270%, in research and development ("R&D"),

and an increase of $0.5 million, or 47%, in depreciation and amortization. The increase in depreciation and amortization in the fourth

quarter of 2024 was driven by a $0.5 million non-cash charge to write-off the remaining net book value of certain Tissue Health Plus

internal use software assets.

loss for the fourth quarter of 2024 was $0.4 million, compared to operating loss of $0.2 million for the fourth quarter of 2023.

expense for the fourth quarter of 2024 was $1.3 million, compared to $36,449 for the fourth quarter of 2023. Other expense for the fourth

quarter of 2024 primarily included higher interest expense related to the Company's term loan with CRG.

loss for the fourth quarter of 2024 was $1.7 million compared to a net loss of $0.3 million for the fourth quarter of 2023. The Company's

Sanara Surgical segment generated net income of $0.9 million for the fourth quarter of 2024, compared to a net loss of $0.7 million for

the fourth quarter of 2023. The Company's Tissue Health Plus segment generated a net loss of $2.6 million for the fourth quarter

of 2024, compared to net income of $0.5 million for the fourth quarter of 2023. The year-over-year increase in net loss in the Company's

Tissue Health Plus segment was primarily due to higher SG&A and R&D related to the buildout of the Tissue Health Plus platform

and infrastructure, and higher depreciation and amortization related to a $0.5 million non-cash charge in the fourth quarter of 2024

to write-off the remaining net book value of certain Tissue Health Plus internal use software assets.

EBITDA(1) for the fourth quarter of 2024 was $0.9 million, compared to $0.4 million for the fourth quarter of 2023. The Company's

Sanara Surgical segment generated Segment Adjusted EBITDA(2) of $4.1 million for the fourth quarter of 2024, compared to $1.5

million for the fourth quarter of 2023. The Company's Tissue Health Plus segment generated Segment Adjusted EBITDA(2)

of ($3.1) million for the fourth quarter of 2024, compared to ($1.1) million for the fourth quarter of 2023.

of December 31, 2024, Sanara had $15.9 million of cash and $30.5 million of principal debt obligations outstanding, and $24.5 million

of available borrowing capacity, compared to $5.1 million, $9.8 million, and $2.3 million, respectively, as of December 31, 2023.

Year 2024 Financial Results

revenue for the full year 2024 was $86.7 million, compared to $65.0 million for the full year 2023, an increase of $21.7 million, or

33%, year-over-year.

loss for the full year 2024 was $9.9 million compared to net loss of $4.4 million for the full year 2023. The Company's Sanara

Surgical segment generated a net loss of $1.9 million for the full year 2024, compared to net income of $0.4 million for the for full

year 2023. The year-over-year change in net loss in the Company's Sanara Surgical segment was driven primarily by interest expense

of $3.2 million, compared to $0.2 million for the full year 2023. The Company's Tissue Health Plus segment generated a net loss

of $8.0 million for the full year 2024, compared to a net loss of $4.9 million for full year 2023. The year-over-year change in net loss

in the Company's Tissue Health Plus segment was primarily due to higher SG&A and R&D related to the buildout of the Tissue

Health Plus platform and infrastructure.

EBITDA(1) for the full year 2024 was $2.7 million, compared to $0.1 million for the full year 2023. The Company's Sanara

Surgical segment generated Segment Adjusted EBITDA(2) of $9.1 million for the full year 2024, compared to $5.3 million for

the full year 2023. The Company's Tissue Health Plus segment generated Segment Adjusted EBITDA(2) of ($6.5) million

for the full year 2024, compared to ($5.2) million for the full year 2023.

Adjusted EBITDA is a non-GAAP financial measure. See the discussion and the reconciliations at the end of this release for additional

Segment Adjusted EBITDA is a non-GAAP financial measure. See the discussion and the reconciliations at the end of this release

for additional information.

will host a conference call on Tuesday, March 25, 2025, at 8:00 a.m. Eastern Time to discuss the results for the quarter and full year

ended December 31, 2024, and hold a question and answer session at the end of the call. The toll-free number to call for this teleconference

is 888-506-0062 (international callers: 973-528-0011) and the access code is 904042. A telephonic replay of the conference call will

be available through Tuesday, April 08, 2025, 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.

MedTech Inc. is 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. The Company 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,

and BIAK S Antimicrobial Skin and Wound Irrigation Solution. 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