SEGMENT REPORTING (Tables)

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

SCHEDULE OF OPERATIONS, ASSETS AND CAPITAL EXPENDITURES FOR OUR BUSINESS SEGMENTS

The following tables reflect results of operations, Segment EBITDA, segmented assets, and expenditures for long-lived assets for the Company’s reportable segments for the periods indicated below:

	Three Months Ended
	September 30,
	2024									2023
	Sanara Surgical			THP			Total			Sanara Surgical		THP			Total
Net revenue	$	21,671,599		$	-		$	21,671,599		$	16,024,948	$	-		$	16,024,948
Gross profit		19,679,612			-			19,679,612			14,273,599		-			14,273,599
Selling, general and administrative expenses		17,420,346			1,572,909			18,993,255			13,460,404		417,475			13,877,879
Research and development		783,840			575,690			1,359,530			225,886		760,568			986,454
Depreciation and amortization		696,888			406,966			1,103,854			590,563		407,111			997,674
Interest expense		927,577			-			927,577			188,294		-			188,294
Net income (loss)		(180,488	)		(2,702,564	)		(2,883,052	)		567,235		(1,662,184	)		(1,094,949	)
Segment EBITDA		2,563,521			(1,721,560	)		841,961			1,400,916		(1,134,124	)		266,792
Segment assets (at period end) (1)	$	67,037,973		$	21,507,503		$	88,545,476		$	45,715,495	$	28,155,654		$	73,871,149
Expenditures for long-lived assets	$	9,096		$	-		$	9,096		$	170,320	$	-		$	170,320

	Nine Months Ended
	September 30,
	2024									2023
	Sanara Surgical			THP			Total			Sanara Surgical		THP			Total
Net revenue	$	60,367,060		$	-		$	60,367,060		$	47,297,299	$	2,730		$	47,300,029
Gross profit (loss)		54,476,341			-			54,476,341			41,241,740		(6,235	)		41,235,505
Selling, general and administrative expenses		51,453,311			2,689,811			54,143,122			39,229,030		1,429,394			40,658,424
Research and development		1,945,263			1,346,216			3,291,479			669,849		2,811,057			3,480,906
Depreciation and amortization		2,093,797			1,220,984			3,314,781			1,359,180		1,221,063			2,580,243
Interest expense		1,839,259			-			1,839,259			188,300		-			188,300
Net income (loss)		(2,872,286	)		(5,339,011	)		(8,211,297	)		1,181,296		(5,358,754	)		(4,177,458	)
Segment EBITDA		5,095,670			(3,350,104	)		1,745,566			3,766,196		(4,087,858	)		(321,662	)
Segment assets (at period end) (1)	$	67,037,973		$	21,507,503		$	88,545,476		$	45,715,495	$	28,155,654		$	73,871,149
Expenditures for long-lived assets	$	133,676		$	-		$	133,676		$	210,970	$	-		$	210,970

(1) - Segment assets for 2023 represent assets as of December 31, 2023.

SCHEDULE OF RECONCILIATION OF NET INCOME (LOSS) TO SEGMENT EBITDA FOR REPORTABLE SEGMENTS

The following tables provide a reconciliation of net income (loss) to Segment EBITDA for the Company’s reportable segments for the periods indicated below:

	Three Months Ended
	September 30,
	2024									2023
	Sanara Surgical			THP			Total			Sanara Surgical			THP			Total
Net Income (Loss)	$	(180,488	)	$	(2,702,564	)	$	(2,883,052	)	$	567,235		$	(1,662,184	)	$	(1,094,949	)
Adjustments:
Interest expense		927,577			-			927,577			188,294			-			188,294
Depreciation and amortization		696,888			406,966			1,103,854			590,563			407,111			997,674
Noncash share-based compensation		1,003,599			21,831			1,025,430			813,606			43,920			857,526
Change in fair value of earnout liabilities		-			147,000			147,000			(758,783	)		77,030			(681,753	)
Share of losses from equity method investment		31,448			-			31,448			-			-			-
Executive separation costs		59,685			-			59,685			-			-			-
Acquisition costs		24,812			405,207			430,019			-			-			-
Segment EBITDA	$	2,563,521		$	(1,721,560	)	$	841,961		$	1,400,916		$	(1,134,124	)	$	266,792

	Nine Months Ended
	September 30,
	2024									2023
	Sanara Surgical			THP			Total			Sanara Surgical			THP			Total
Net Income (Loss)	$	(2,872,286	)	$	(5,339,011	)	$	(8,211,297	)	$	1,181,296		$	(5,358,754	)	$	(4,177,458	)
Adjustments:
Interest expense		1,839,259			-			1,839,259			188,300			-			188,300
Depreciation and amortization		2,093,797			1,220,984			3,314,781			1,359,180			1,221,063			2,580,243
Noncash share-based compensation		2,803,536			108,031			2,911,567			2,423,335			158,828			2,582,163
Change in fair value of earnout liabilities		(14,451	)		82,000			67,549			(1,385,914	)		(108,996	)		(1,494,910	)
Share of losses from equity method investment		31,448			-			31,448			-			-			-
Executive separation costs (1)		964,466			-			964,466			-			-			-
Acquisition costs		249,901			577,892			827,793			-			-			-
Segment EBITDA	$	5,095,670		$	(3,350,104	)	$	1,745,566		$	3,766,196		$	(4,087,858	)	$	(321,662	)

(1) - Includes $328,795 of share-based compensation related to executive separation costs for the nine months ended September 30, 2024.