$SMTI

WOUND MANAGEMENT TECHNOLOGIES, INC.

CIK:0000714256|SEC Filings

Consolidated Statements of Operations (Unaudited) - USD ($)

3 Months Ended

6 Months Ended

Jun. 30, 2026

Jun. 30, 2025

Jun. 30, 2026

Jun. 30, 2025

Income Statement [Abstract]

Net Revenue

$ 28,136,757

$ 25,804,252

$ 55,935,291

$ 49,238,348

Cost of goods sold

1,981,347

1,937,282

3,904,936

3,772,249

Gross profit

26,155,410

23,866,970

52,030,355

45,466,099

Operating expenses

Selling, general and administrative

22,601,690

19,634,319

44,483,210

38,763,527

Research and development

1,154,232

1,056,796

1,913,824

2,007,155

Depreciation and amortization

^[1],[2]

619,111

688,546

1,206,363

1,382,578

Total operating expenses

24,375,033

21,379,661

47,603,397

42,153,260

Operating income

1,780,377

2,487,309

4,426,958

3,312,839

Other income (expense)

Interest expense

(1,810,311)

(1,791,568)

(3,609,656)

(3,108,660)

Share of losses from equity method investments

(433,648)

(195,482)

(896,155)

(339,090)

Interest income

53,814

66,772

3,672

Gain (loss) on disposal of property and equipment

(1,376)

10,932

Total other income (expense)

^[3]

(2,191,521)

(1,987,050)

(4,440,415)

(3,433,146)

Net income (loss) from continuing operations

(411,144)

500,259

(13,457)

(120,307)

Net income (loss) from discontinued operations (Note 3)

(41,720)

(2,518,657)

19,196

(5,425,474)

Net income (loss)

(452,864)

(2,018,398)

5,739

(5,545,781)

Less: Net loss attributable to noncontrolling interest from continuing operations

(4,036)

(354)

(4,242)

Net income (loss) attributable to Sanara MedTech shareholders

$ (452,864)

$ (2,014,362)

$ 6,093

$ (5,541,539)

Net income (loss) per share, basic:

Continuing operations

$ (0.05)

$ 0.06

$ (0.01)

Discontinued operations

(0.29)

(0.63)

Net income (loss) per share of common stock, basic

(0.05)

(0.23)

(0.64)

Net income (loss) per share, diluted:

Continuing operations

(0.05)

0.05

(0.01)

Discontinued operations

(0.28)

(0.63)

Net income (loss) per share of common stock, diluted

$ (0.05)

$ (0.23)

$ (0.64)

Weighted average number of common shares outstanding, basic

8,662,671

8,612,986

8,732,849

8,591,663

Weighted average number of common shares outstanding, diluted

8,662,671

8,927,060

8,732,849

8,591,663

[1]	Depreciation expense of $7,021 and $12,482 was reclassified as continuing operations in the three and six months ended June 30, 2025, respectively, and is therefore no longer reflected in discontinued operations.
[2]	Depreciation expense of $7,021 and $12,482 was reclassified as continuing operations in the three and six months ended June 30, 2025, respectively, and is therefore no longer reflected in discontinued operations.
[3]	For the three and six months ended June 30, 2026, other expense included interest expense, share of losses from equity method investments and loss on disposal of property and equipment, offset by interest income. For the three months ended June 30, 2025, other expense included interest expense and share of losses from equity method investments. For the six months ended June 30, 2025, other expense included interest expense and share of losses from equity method investments, offset by interest income and gain on disposal of property and equipment.

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income (loss)	$ 5,739	$ (5,545,781)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	1,206,363	2,238,641
(Gain) loss on disposal of property and equipment	1,376	(9,674)
Credit loss expense	141,000	294,034
Inventory obsolescence	130,822	371,957
Share-based compensation	2,524,645	2,740,343
Noncash lease expense	166,356	359,758
Share of losses from equity method investments	896,155	339,090
Back-end fee	359,067	377,490
Paid-in-kind interest		995,244
Accretion of finance liabilities	53,160	86,541
Amortization and write-off of debt issuance costs	147,083	132,821
Changes in operating assets and liabilities:
Accounts receivable, net	(700,576)	125,086
Accounts receivable – related parties		31,485
Inventory, net	358,005	(1,130,775)
Prepaid and other assets	254,547	(76,285)
Accounts payable	(937,318)	(42,464)
Accounts payable – related parties		1,442
Accrued royalties and expenses	898,597	317,076
Accrued bonuses and commissions	(5,762,706)	(579,389)
Operating lease liabilities	(169,250)	(361,513)
Net cash provided by (used in) operating activities	(426,935)	665,127
Cash flows from investing activities:
Purchases of property and equipment	(49,052)	(3,484,008)
Proceeds from disposal of property and equipment		60,000
Purchases of intangible assets		(23,452)
Investment in equity securities		(3,538,217)
CarePICS Acquisition		(2,122,146)
Net cash used in investing activities	(49,052)	(9,107,823)
Cash flows from financing activities:
Loan proceeds, net of debt issuance costs of zero in 2026 and $228,183 in 2025		12,021,817
Pay off debt assumed in CarePICS Acquisition		(1,650,000)
Net settlement of equity-based awards	(525,700)	(692,672)
Cash payment of finance and earnout liabilities	(156,000)	(156,000)
Net cash provided by (used in) financing activities	(681,700)	9,523,145
Net increase (decrease) in cash and cash equivalents	(1,157,687)	1,080,449
Cash and cash equivalents, beginning of period	16,578,857	15,878,295
Cash and cash equivalents, end of period	15,421,170	16,958,744
Cash paid during the period for:
Interest	3,050,346	1,516,563
Taxes	48,716	52,984
Supplemental noncash investing and financing activities:
Non-monetary exchange to acquire intangible assets		2,084,278
Conversion of note receivable into equity method investment		1,101,478
Earnout liability generated by CarePICS Acquisition		$ 1,355,603

Consolidated Balance Sheets - USD ($)	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents	$ 15,421,170	$ 16,578,857
Accounts receivable, net	12,572,651	11,998,075
Inventory, net	3,459,921	3,948,748
Prepaid and other assets	741,733	948,620
Current assets related to discontinued operations (Note 3)	5,203	67,863
Total current assets	32,200,678	33,542,163
Long-term assets
Intangible assets, net	17,277,013	18,640,673
Goodwill	3,601,781	3,601,781
Investment in equity securities	13,730,703	14,626,858
Right of use assets – operating leases	1,909,278	2,075,634
Property and equipment, net	426,934	456,962
Total long-term assets	36,945,709	39,401,908
Total assets	69,146,387	72,944,071
Current liabilities
Accounts payable	1,401,443	2,338,761
Accrued bonuses and commissions	6,801,395	11,781,435
Accrued royalties and expenses	3,562,415	2,684,626
Earnout liabilities – current		235,001
Operating lease liabilities – current	383,153	353,229
Current liabilities related to discontinued operations (Note 3)	345,585	1,233,478
Total current liabilities	12,493,991	18,626,530
Long-term liabilities
Long-term debt	46,477,087	45,970,937
Operating lease liabilities – long-term	1,669,529	1,868,703
Other long-term liabilities	571,320	548,125
Total long-term liabilities	48,717,936	48,387,765
Total liabilities	61,211,927	67,014,295
Commitments and contingencies (Note 9)
Shareholders’ equity
Common Stock: $0.001 par value, 20,000,000 shares authorized; 9,193,394 issued and outstanding as of June 30, 2026 and 8,946,913 issued and outstanding as of December 31, 2025	9,194	8,948
Additional paid-in capital	82,826,049	81,232,536
Accumulated deficit	(74,891,763)	(75,303,042)
Total Sanara MedTech shareholders’ equity	7,943,480	5,938,442
Equity attributable to noncontrolling interest	(9,020)	(8,666)
Total shareholders’ equity	7,934,460	5,929,776
Total liabilities and shareholders’ equity	$ 69,146,387	$ 72,944,071