2022 Q3 Form 10-Q Financial Statement

#000149315222022851 Filed on August 15, 2022

View on sec.gov

Income Statement

Concept 2022 Q3 2022 Q2 2022 Q1
Revenue $13.04M $9.671M $7.811M
YoY Change 123.98% 54.06% -30.79%
Cost Of Revenue $2.229M $958.1K $805.1K
YoY Change 330.55% 78.61% 71.29%
Gross Profit $10.82M $8.713M $7.006M
YoY Change 103.83% 51.77% 54.32%
Gross Profit Margin 82.92% 90.09% 89.69%
Selling, General & Admin $12.06M $10.43M $9.376M
YoY Change 74.31% 58.91% 73.3%
% of Gross Profit 111.52% 119.69% 133.82%
Research & Development $1.061M $1.067M $204.6K
YoY Change 2875.24% 926.15% 70.53%
% of Gross Profit 9.81% 12.25% 2.92%
Depreciation & Amortization $106.3K $412.0K $202.8K
YoY Change -48.01% 306.34% 125.28%
% of Gross Profit 0.98% 4.73% 2.89%
Operating Expenses $13.94M $11.91M $9.783M
YoY Change 94.66% 75.96% 74.08%
Operating Profit -$3.122M -$3.194M -$2.777M
YoY Change 68.42% 211.29% 157.12%
Interest Expense $109.7K $63.43K
YoY Change
% of Operating Profit
Other Income/Expense, Net -$109.7K -$63.43K -$379.6K
YoY Change -43.41%
Pretax Income -$3.232M -$3.258M -$3.157M
YoY Change 57.83% 170.15% 167.5%
Income Tax -$1.700M -$4.100M
% Of Pretax Income
Net Earnings -$1.529M -$3.258M -$3.157M
YoY Change -25.32% 170.15% 166.74%
Net Earnings / Revenue -11.72% -33.69% -40.41%
Basic Earnings Per Share -$0.18 -$0.42 -$0.41
Diluted Earnings Per Share -$181.4K -$416.5K -$411.4K
COMMON SHARES
Basic Shares Outstanding 8.304M shares 7.791M shares 7.606M shares
Diluted Shares Outstanding 8.107M shares 8.163M shares

Balance Sheet

Concept 2022 Q3 2022 Q2 2022 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $10.29M $12.68M $16.14M
YoY Change -65.15% -48.01% -40.93%
Cash & Equivalents $10.29M $12.68M $16.14M
Short-Term Investments
Other Short-Term Assets $1.015M $739.5K $624.9K
YoY Change -0.63% 48.75% 20.18%
Inventory $3.734M $2.312M $2.171M
Prepaid Expenses
Receivables $5.421M $3.837M $3.555M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $20.57M $19.83M $22.49M
YoY Change -24.45% -31.44% -28.68%
LONG-TERM ASSETS
Property, Plant & Equipment $1.471M $1.514M $1.934M
YoY Change -7.0% -9.31% -7.9%
Goodwill $3.278M
YoY Change
Intangibles $32.22M $21.76M
YoY Change 566.21% 474.76%
Long-Term Investments $3.084M $3.084M $4.888M
YoY Change -19.08% -23.0% 205.48%
Other Assets
YoY Change
Total Long-Term Assets $40.90M $26.65M $11.44M
YoY Change 282.34% 170.14% 52.94%
TOTAL ASSETS
Total Short-Term Assets $20.57M $19.83M $22.49M
Total Long-Term Assets $40.90M $26.65M $11.44M
Total Assets $61.48M $46.48M $33.93M
YoY Change 62.09% 19.84% -13.04%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $893.9K $732.9K $981.2K
YoY Change 178.13% 133.74% 165.19%
Accrued Expenses $8.283M $5.452M $4.250M
YoY Change 123.58% 61.54% 53.42%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $9.206M $6.930M $5.231M
YoY Change 121.39% 85.0% 67.12%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $7.055M $3.946M $187.0K
YoY Change 7713.75% 4269.75% -54.38%
Total Long-Term Liabilities $7.623M $4.097M $187.0K
YoY Change 2096.76% 975.19% -54.38%
TOTAL LIABILITIES
Total Short-Term Liabilities $9.206M $6.930M $5.231M
Total Long-Term Liabilities $7.623M $4.097M $187.0K
Total Liabilities $16.83M $11.03M $4.902M
YoY Change 273.54% 167.19% 61.8%
SHAREHOLDERS EQUITY
Retained Earnings -$19.12M -$21.66M
YoY Change 67.6% 130.79%
Common Stock $64.57M $57.86M
YoY Change 845995.83% 759999.38%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $45.46M $36.20M $29.03M
YoY Change
Total Liabilities & Shareholders Equity $61.48M $46.48M $33.93M
YoY Change 62.09% 19.84% -13.04%

Cashflow Statement

Concept 2022 Q3 2022 Q2 2022 Q1
OPERATING ACTIVITIES
Net Income -$1.529M -$3.258M -$3.157M
YoY Change -25.32% 170.15% 166.74%
Depreciation, Depletion And Amortization $106.3K $412.0K $202.8K
YoY Change -48.01% 306.34% 125.28%
Cash From Operating Activities -$1.643M -$1.154M -$2.112M
YoY Change 14.56% 243.65% 67.66%
INVESTING ACTIVITIES
Capital Expenditures $1.441M -$2.090M -$44.70K
YoY Change -347.04% 8111.83%
Acquisitions
YoY Change
Other Investing Activities -$2.191M $0.00 -$249.7K
YoY Change -100.0% -58.39%
Cash From Investing Activities -$750.4K -$2.090M -$294.4K
YoY Change 28.65% -19.92% -50.94%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 0.000 -220.0K -102.9K
YoY Change 29629.73% -100.36%
NET CHANGE
Cash From Operating Activities -1.643M -1.154M -2.112M
Cash From Investing Activities -750.4K -2.090M -294.4K
Cash From Financing Activities 0.000 -220.0K -102.9K
Net Change In Cash -2.393M -3.464M -2.510M
YoY Change 18.63% 17.58% -109.34%
FREE CASH FLOW
Cash From Operating Activities -$1.643M -$1.154M -$2.112M
Capital Expenditures $1.441M -$2.090M -$44.70K
Free Cash Flow -$3.084M $935.6K -$2.068M
YoY Change 262.41% -401.37% 64.11%

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us-gaap Net Income Loss Available To Common Stockholders Basic
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CY2022Q2 us-gaap Earnings Per Share Basic
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us-gaap Earnings Per Share Basic
EarningsPerShareBasic
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us-gaap Earnings Per Share Basic
EarningsPerShareBasic
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CY2021Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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CY2021Q1 us-gaap Stock Issued During Period Value New Issues
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CY2021Q1 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
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CY2021Q1 us-gaap Minority Interest Decrease From Distributions To Noncontrolling Interest Holders
MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders
200000 usd
CY2021Q1 us-gaap Net Income Loss
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CY2021Q1 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
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CY2021Q2 SMTI Capital Contribution Of Noncontrolling Interest
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CY2021Q2 us-gaap Net Income Loss
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CY2022Q1 SMTI Net Settlement And Retirement Of Equity Based Awards
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CY2022Q1 us-gaap Net Income Loss
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CY2022Q1 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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CY2022Q2 us-gaap Minority Interest Decrease From Distributions To Noncontrolling Interest Holders
MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders
220000 usd
CY2022Q2 us-gaap Net Income Loss
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CY2022Q2 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
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us-gaap Net Income Loss
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us-gaap Net Income Loss
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us-gaap Depreciation And Amortization
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us-gaap Depreciation And Amortization
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us-gaap Gain Loss On Disposition Of Assets
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us-gaap Provision For Doubtful Accounts
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195000 usd
us-gaap Provision For Doubtful Accounts
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51536 usd
us-gaap Inventory Write Down
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159717 usd
us-gaap Inventory Write Down
InventoryWriteDown
29834 usd
us-gaap Share Based Compensation
ShareBasedCompensation
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us-gaap Share Based Compensation
ShareBasedCompensation
623440 usd
us-gaap Accretion Expense
AccretionExpense
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us-gaap Other Noncash Expense
OtherNoncashExpense
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us-gaap Other Noncash Expense
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us-gaap Income Loss From Equity Method Investments
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us-gaap Income Loss From Equity Method Investments
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us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
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us-gaap Increase Decrease In Accounts Receivable Related Parties
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us-gaap Increase Decrease In Inventories
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us-gaap Increase Decrease In Inventories
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us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
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IncreaseDecreaseInAccountsPayableRelatedParty
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SMTI Increase Decrease In Accounts Payable Related Party
IncreaseDecreaseInAccountsPayableRelatedParty
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SMTI Increase Decrease In Royalty Payable
IncreaseDecreaseInRoyaltyPayable
761377 usd
SMTI Increase Decrease In Royalty Payable
IncreaseDecreaseInRoyaltyPayable
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IncreasedecreaseinaccruedBonusAndCommissions
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us-gaap Increase Decrease In Operating Lease Liability
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us-gaap Net Cash Provided By Used In Operating Activities
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us-gaap Payments To Acquire Property Plant And Equipment
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250000 usd
us-gaap Payments To Acquire Equity Method Investments
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us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Proceeds From Lines Of Credit
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us-gaap Repayments Of Lines Of Credit
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us-gaap Proceeds From Payments For Other Financing Activities
ProceedsFromPaymentsForOtherFinancingActivities
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us-gaap Payments Of Distributions To Affiliates
PaymentsOfDistributionsToAffiliates
220000 usd
us-gaap Payments Of Distributions To Affiliates
PaymentsOfDistributionsToAffiliates
200000 usd
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
-322931 usd
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
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us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
18652841 usd
CY2020Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
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CY2022Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
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CY2021Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
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24389004 usd
us-gaap Interest Paid Net
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us-gaap Stock Issued1
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us-gaap Stock Issued1
StockIssued1
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us-gaap Conversion Of Stock Amount Converted1
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SMTI License Agreement As Capital Contribution From Noncontrolling Interest
LicenseAgreementAsCapitalContributionFromNoncontrollingInterest
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us-gaap Nature Of Operations
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<p id="xdx_80B_eus-gaap--NatureOfOperations_zIqE2htAG7pg" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 1 - <span id="xdx_82C_zNKUEdE0h7K6">NATURE OF BUSINESS AND BACKGROUND</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sanara MedTech Inc. (“we”, “our”, the “Company”) is a medical technology company focused on developing and commercializing transformative technologies to improve clinical outcomes and reduce healthcare expenditures in the surgical and chronic wound and skin care markets. The Company’s portfolio of products, services and technologies is designed to allow the Company to deliver comprehensive wound and skin care solutions for patients in all care settings, including acute (hospitals and long-term acute care hospitals) and post-acute (wound care clinics, physician offices, skilled nursing facilities, home health, hospice, and retail). Each of the Company’s products, services, and technologies contributes to the Company’s overall goal of achieving better clinical outcomes at a lower overall cost for patients regardless of where they receive care. The Company strives to be one of the most innovative and comprehensive providers of effective wound and skin care solutions.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
us-gaap Use Of Estimates
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<p id="xdx_840_eus-gaap--UseOfEstimates_zYgkguHLSVc5" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Use of Estimates </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. The extent to which the COVID-19 pandemic may directly or indirectly impact the Company’s business, financial condition, and results of operations is highly uncertain and subject to change. The Company considered the potential impact of the COVID-19 pandemic on its estimates and assumptions and determined there was not a material impact on the Company’s estimates and assumptions used in preparing its unaudited consolidated financial statements as of and for the six months ended June 30, 2022. However, actual results could differ from those estimates and there may be changes to the Company’s estimates in future periods.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
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us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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SMTI Royalty Percentage
RoyaltyPercentage
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us-gaap Payments For Royalties
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us-gaap Payments For Royalties
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us-gaap Inventory Write Down
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us-gaap Inventory Write Down
InventoryWriteDown
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CY2022Q2 us-gaap Property Plant And Equipment Gross
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CY2021Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
342574 usd
CY2022Q2 us-gaap Property Plant And Equipment Net
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us-gaap Depreciation
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us-gaap Depreciation
Depreciation
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us-gaap Operating Lease Expense
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IntangibleAssetsNetExcludingGoodwill
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420467 usd
us-gaap Amortization Of Intangible Assets
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CY2022Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Remainder Of Fiscal Year
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CY2022Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Next Twelve Months
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CY2022Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
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CY2022Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
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CY2022Q2 us-gaap Finite Lived Intangible Assets Amortization Expense After Year Five
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us-gaap Royalty Expense
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us-gaap Royalty Expense
RoyaltyExpense
404220 usd
CY2020Q2 us-gaap Cash
Cash
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SMTI Royalties Payable Minimum
RoyaltiesPayableMinimum
201000 usd
CY2022Q2 us-gaap Payments For Royalties
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50250 usd
SMTI Annual Royalty Obligation
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CY2022Q2 SMTI Annual Royalty Obligation
AnnualRoyaltyObligation
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CY2022Q2 us-gaap Asset Acquisition Consideration Transferred
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CY2022Q2 SMTI Transaction Expenses
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CY2022Q2 us-gaap Stock Issued During Period Shares Acquisitions
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CY2022Q2 us-gaap Share Price
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10.71
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us-gaap Operating Lease Expense
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us-gaap Operating Lease Payments
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us-gaap Operating Lease Payments
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CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
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CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Two
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CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
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CY2022Q2 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
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CY2022Q2 us-gaap Operating Lease Liability
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308337 usd
CY2022Q2 us-gaap Operating Lease Liability Current
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CY2022Q2 us-gaap Operating Lease Weighted Average Remaining Lease Term1
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CY2022Q2 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
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CY2021Q3 us-gaap Contingent Consideration Classified As Equity Fair Value Disclosure
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CY2022Q2 us-gaap Asset Acquisition Consideration Transferred
AssetAcquisitionConsiderationTransferred
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CY2022Q2 us-gaap Stock Issued During Period Shares Acquisitions
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CY2022Q2 SMTI Transaction Expenses
TransactionExpenses
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CY2022Q2 us-gaap Stock Issued During Period Shares Acquisitions
StockIssuedDuringPeriodSharesAcquisitions
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CY2022Q2 us-gaap Share Price
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us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
144191 shares
CY2022Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Period Increase Decrease Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingPeriodIncreaseDecreaseWeightedAverageExercisePrice
10.71
CY2022Q2 us-gaap Class Of Warrant Or Right Number Of Securities Called By Warrants Or Rights
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4424 shares
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ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1
7.32
CY2022Q2 us-gaap Warrants And Rights Outstanding Maturity Date
WarrantsAndRightsOutstandingMaturityDate
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CY2022Q2 us-gaap Asset Acquisition Consideration Transferred Contingent Consideration
AssetAcquisitionConsiderationTransferredContingentConsideration
10000000.0 usd
CY2022Q2 us-gaap Shares Issued Price Per Share
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27.13
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod
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us-gaap Stock Issued During Period Value Restricted Stock Award Gross
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us-gaap Share Based Compensation
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1288335 usd
us-gaap Share Based Compensation
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CY2021Q4 us-gaap Accrued Liabilities Current And Noncurrent
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us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition1
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CY2022Q2 us-gaap Other Investments And Securities At Cost
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CY2022Q2 us-gaap Investments
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CY2021Q4 us-gaap Investments
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CY2021Q4 us-gaap Accounts Receivable Related Parties Current
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CY2021Q3 us-gaap Contingent Consideration Classified As Equity Fair Value Disclosure
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CY2021Q3 us-gaap Business Combination Contingent Consideration Liability
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CY2021Q3 us-gaap Business Acquisition Cost Of Acquired Entity Transaction Costs
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CY2021Q3 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Net
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1162830 usd
CY2021Q3 SMTI Business Acquisition Purchase Price Consideration Percentage
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1.000 pure
CY2022Q2 us-gaap Asset Acquisition Consideration Transferred
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CY2022Q2 us-gaap Warrants And Rights Outstanding Maturity Date
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CY2021Q4 us-gaap Accounts Payable Related Parties Current
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CY2022Q2 us-gaap Accounts Receivable Related Parties Current
AccountsReceivableRelatedPartiesCurrent
210584 usd

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