Sanara MedTech Inc. (NASDAQ:SMTI) Q4 2022 Earnings Call Transcript

So we were at 29 states over $50,000 annually and that’s growing very quickly and continuing to expand. One of the things that’s helped us a lot is we added a national accounts director that had a lot of experience, had a lot of connections. We’re able to contract our business at a very high rate. But top of my head, I don’t have that exact number of how many we’ve contracted, but we’ve contracted a very high rate and that allows us to keep those doors open, have great relationships with the hospital systems and then provide that access to our sellers. We also qualify our 1099, train them very well, make sure everybody’s very compliant. And so, you know, we’re a good team to work with. So the hospitals appreciate that. I think sometimes they some of the other companies that might be out there aren’t as friendly and easy to work with.

And so we strive to do that both in the back of our house and we’re doing our customer service. But as well obviously in the field with the people that are the faces of the product in the field.

Chris Plahm: Great. Thanks, guys. Good to hear.

Zachary Fleming: Thank you, Chris.

Operator: Thank you. Our next question is coming from Michael Disalle with Sanara. Please go ahead.

Unidentified Analyst: Hey, guys, great fourth quarter. Just got three part question here. So most — most of the increasing revenue is reported to be from Cellerate, the surgical power, which is a great product. The product is not manufactured or owned by Sanara. So I’m wondering in order to vertically integrate, mitigate the risk of unavailability of such an important part of the revenue stream, do you guys have any plans or a timetable to obtain ownership of that product line or a replacement if needed?

Zachary Fleming: Ron, you want to take that?

Ron Nixon: Yeah, that’s — yeah, obviously, we actually have an exclusive license on that product. We work very closely with the manufacturing company, and so that’s not something that we need to discuss today. But quite frankly, we’re on top of exactly what we do. Our people go into the manufacturing facility. We have a very close relationship. So it’s served us well.

Unidentified Analyst: Got you. And in terms of the Cellerate product.

Zachary Fleming: Michael, can I just clarify one thing? The operator said you were with Sanara. I don’t —

Unidentified Analyst: Scans LLC is who I’m with. Scans.

Zachary Fleming: We just want to clarify you weren’t with the company. Thank you.

Unidentified Analyst: No, no. I’m not with the company. No, no. So the in terms of the Cellerate product, it turns, you know, they have 20 other patent references of related products. Do you have any plans to use any of their other wound care products? And add to the portfolio?

Ron Nixon: Yes, all of them, in fact. So we just don’t have — we haven’t laid out a timeline yet of how they roll out.

Unidentified Analyst: Excellent.

Ron Nixon: But, yeah, they’re either — they’re either — they’re either related to surgery or they’re related to our comprehensive wound strategy.

Unidentified Analyst: Got you. And then just —

Ron Nixon: Or skin products.

Unidentified Analyst: Got you. Got you. So, okay, so lastly, since the significant growth in sales seems to be concentrated in some time, you kind of answered this question already, do you have any plans or timetable to expand where you kind of did answer this, but do you have any plans on taking it internationally like Mexico or Canada retailer for instance?

Ron Nixon: Well, our primary objective is to reach all — all 50 states in which we’re already in today. So that’s not — not in the short-term, but I’m sure it will be in a long-term.

Unidentified Analyst: Okay, fantastic. Thank you.

Operator: Thank you. Our next question is coming from Robert Gross with . Please go ahead.