... Let's go ahead and get started. My name is Ross Osborne, the med tech and diagnostics analyst at Cantor Fitzgerald, and today we have Sanara MedTech. We have the newly appointed CEO, Seth Yon, and the CFO, Elizabeth Taylor. So with that being said, Seth, you wanna start off with your background? Sure. Ross, thanks for having us. I've been at Sanara now for the last eight years. Kind of was one of the original that came in when this company was very small. Was tasked with, at that time, being the director of wound care, and at the same time, could I go out and start to establish some of the surgical business? And so I did that for the first year and a half or two while I was there. Moved into the national sales director role just after that. A year later, I moved into the VP of sales role. A year later, I moved into the President of Commercial, Chief of Commercial role in the spring of 2025, and yesterday was appointed the CEO role. Going forward, that'll start September 15. So it's been a great journey. A lot of work has been done. A lot of work has to be done, you know, going forward as well. But we're really excited with the position that we sit in. Great. Elizabeth? Hi. I joined Sanara in January of this year, so this is one of the newest members of the team. Before that, I was at a private company in the wound care space called Imbed Biosciences, and was there for about seven years, and have always been in finance. Started in private equity and hedge funds, and- Perfect. Yeah. Thanks for the introductions, and so maybe just level set the room for those less familiar with the Sanara story. Sure ... and go back eight years ago when you started - Yeah ... or a more recent timeline, but how the company- Let's go back eight years. ... developed over time. No. It's. You know, when we first started, we were a single product company. We were tasked with, you know, getting Cellerate to market. It was a unique technology that, quite honestly, really hadn't met the OR just as of yet. We were just starting to do that. That was under a past regime. We stepped in. There was a handful of us that came in and started to really shape the business, give the product a voice, establish things like the distributor network, approvals at the facility level, and start to get, you know, conversations alive with surgeons as well. So it took some time to do that, and at the same time, we were building a sales force that was complementary to distribution, and that took time, over a two, three, four-year window, to get that right and really established so that those two groups were complementary to each other. And that's how we started to build and to scale this business, and obviously, things have changed now with not just being a single product company. We've got a complete offering, and that's everything from soft tissue products all the way into bone fusion and bone fusion repair, and we continue to expand nationally, in both those two categories. Great, and maybe before we dive in, you know, Elizabeth, what attracted you to Sanara? A couple things. I first met Ron, who is our chairman, through my old company and really liked him, really liked sort of the space they were in, love that they're in the surgical suite, met a few people who worked there and was so impressed with the team and how nice they are and the culture that they'd built, and I really felt like there were some exciting growth prospects for the next five years, so I was excited to join. Perfect. Well, speaking of growth, you guys had a really strong 2Q. Can you walk through some of the key drivers there? Sure. We had a big quarter at 25.8. You know, we had a very balanced quarter, both in soft tissue and in the bone repair products as well. We talk about this a lot on the earnings call, but the key drivers for us are three metrics: How do we perform with our distributor network? What have we done with approvals and gaining contracts? And then lastly, how are we reaching surgeons? When you can hit on all three of those things inside the same quarter, you generally are gonna do pretty well, and that's been our experience. But really strong performance out of BIOKOS and Cellerate, which are our two anchor products, and had a really strong bone fusion quarter as well. It was the biggest rise that we've seen since we acquired Scendia back in 2023, and that, you know, had an increase of about 25%, so overall, it was just a really balanced quarter and saw nice growth. Great, and maybe diving a little bit deeper with the Scendia, you know, where is that strength coming from? Yeah so, you know, we've been fortunate over time to deploy really talented RSMs, and they've had backgrounds in that space as well. When we first started to hire, when it was just Cellerate, we hired a lot of soft tissue repair folks, and they've done an exceptional job to get that product to market, that and BioSurg and such. But since then, we've also brought on some talent that has experience in that soft tissue space but also into that bony space as well, and they've really helped us to start to establish things across the country in the bone fusion product line. Great, and then, excuse me, in addition to nice top line growth, you guys also generated cash from ops this quarter. Mm-hmm. You know, what's driving that? Where are you seeing leverage in the business, and how should we think about your cash profile? Sure ... going forward? I mean, I can start a little bit with what we've built on the sales side. Yeah. You know, we didn't really expand our sellers as far as internal sellers in 2025. We've certainly done that with the W-2 or the 1099 space with our distributor partners, but we felt like we could build that in those early days and then start to leverage that. You know, that fixed cost was there in that market, and we didn't need to expand it to, you know, 50, 60, 70 RSMs. We like where we sit now, and we've leveraged that over the last 12 to 18 months. Perfect. I think in addition to that, over the past two years, the company's really worked to build out its senior management team, and so that's pretty much built out, and it's sort of ready for the next stage of growth. You're gonna see some operating leverage with not needing additional senior level hires. The surgical business is a cash flow positive business. I mean, trailing 12 months of $14 million EBITDA, and, you know, we've defined our spend on THP for the second half of the year. You know, I... We think our margins for the surgical business should be steady. There's nothing that should be a surprise there, so. Yeah. Great. And then maybe taking a step back, could you talk about your physician base? It's expanded, you know, outside of your traditional spine and ortho, where you're addressing some new areas. Sure. I mean, it's still our core. We started first in spine, then it moved into ortho. That is truly the backbone to our business, are those two specialties. But we have started to reach into other areas as well. We've got a nice, you know, foot and ankle space. We've got, you know, starting to see penetration into the plastics, vascular space, general. But it's a little bit different, right, than what we have with distribution, so we have to do that in partnership with our distributor to get that coverage. And we've been very fortunate to do that. But I will say that as you look at how we go forward, our core will still be ortho and spine, right? There's a lot of upside still there for potential growth, and we'll be very opportunistic with those other specialties to continue to widen inside a facility. So that's always going to be an approach, but again, the core of that business sits with ortho and spine. And again, the other specialties are starting to see the benefits that come from these products as well and taking interest in it. And sometimes it's a scenario where, you know, a vascular surgeon is doing access for, you know, a spine procedure, or a plastic surgeon is doing closure for a spine procedure, and that starts to lead into other opportunities for us beyond that one case. Got it. And so I guess outside of word of mouth, how can you guys drive further penetration? Do you need a larger sales force? Is it incremental clinical data? You know, we'll always, you know, do two things from the clinical side, is drive that clinical story and then drive that economic story as well, and that doesn't matter the product. You know, that will always be a focus for us. As far as our sales force, you know, I don't envision that getting a lot larger from an internal basis. But we will continue to grow our distributor network. You know, if you follow that trend over the last few years, we're at now over 400 distributors. That's signed contract, that's not total sellers. That's actually contracted agreements, and we've been very fortunate to do that over time, and we'll continue to look at areas where we need more help to fill in with that distributor support. Got it. Can I ask you a quick question? Sure. I'm not familiar with your company, but when you say clinical evidence, what are you showing? Yeah, I mean, again, mode of action, looking to prove out our technologies, right? So you obviously get clearance to bring the technology into the OR, but we wanna always drive more evidence of how that product is working, and that can be true with Cellerate, which again, is an anchor product to us, or BIAKOS, which is an antimicrobial wash that we launched two years ago. We wanna always build evidence along the way to showcase just how well that product's working. Of course, but how do you do it? I mean, what, like, you put it in trials or are you- No, we're generally- Surgeons give you the feedback. It generally is coming from surgeons, right? Where they're gonna actually do a handful of cases, a number of cases, and do maybe potentially white papers, things like that, to continuously showcase that. It starts really at the case study form and then builds all the way up to full-blown research. Good. Maybe going off of that, how do you feel about your current product portfolio? You guys announced you're exploring strategic alternatives for THP. Mm-hmm. Can you just walk through, you know, why you guys are looking to sell that business? Yeah, I would say at this point, you know, we brought in a strategic advisor to look at what are the best options for us as a whole with THP, and that could be any number of things, right? It could be, you know, does that technology and business get bought? Is there a partnership that could exist there? Is it some funding? All of those things are being looked at, and, you know, we're gonna let that process kind of take its course. It's not been a long time since that started. We'll evaluate that in the next couple of months and see where we sit, and then make some decisions on how we go forward. Perfect. And then any exciting products in your pipeline you can highlight? Yeah. So yeah, I think most have heard about OsStic, which we'll launch hopefully in 2027. It's a product that we're extremely excited about. You know, the FDA gave us... or not us, but gave the product breakthrough designation, which always is a good sign. That means that they see something in that technology that's unique enough, that doesn't sit in the market today, and that usually puts you towards the top of the list as you're starting to go through that regulatory process. We don't own the regulatory process. That sits with BMI versus us. We work very closely with BMI on all things, whether it's sales, marketing, and the things that we'll need. We still sit in a great spot to see that product launch in 2027. And it's a great fit for us as a sales team, it's a great fit for the distributor network that we've built, and there's an absolute need for it in that trauma space for periarticular fractures. Great, and then maybe for those not familiar with the product, could you just give a high-level overview of what the product is? Yeah, it's a bioadhesive product that you're gonna use in periarticular fractures for trauma cases and that. So again, for better terms, think of it as like a bone glue, which it's not. I can't make that claim, and it's not. But just in its simplest form, you know, think of it in that form. But when you're trying to put in a traumatic case, you're trying to put that bone back together, we think it's a technology that's gonna do very well. Great. And then realize you're only 24 hours into the CEO role, but you've been with the company for eight years. So, you know, what areas are gonna be the easy ones to improve or that you wanna, you know, start hitting in the first 100 days, we'll say? Sure. I mean, we're gonna continue to try to get sharp. That's always going to be our approach, and we talk a lot about this internally. When you're an eight-year-old company, in essence, you know, you're still kind of walking across the bridge that you're building, and so we'll continuously fine-tune things, but Elizabeth said it before too, you know, Ron has done a great job of building a leadership team to really scale this business into the future. When I think back just a couple of years ago, there was three people sitting in the room from a leadership perspective, and now there's, you know, almost a dozen high-talent people that come to our business with great experience, great relationships, and we're very fortunate to see that team assembled, but our goal is gonna be about focus and discipline. You know, how do we stay true to who we are as a surgical business, drive that into the future? and that's everything from Cellerate, to TRG, to BIAKOS. You know, how do we just continuously get sharper with that and being very disciplined? ... Perfect. And thinking about growth over the next couple years, you know, what can you do to drive incremental growth for Cellerate? Mm-hmm. You know, again, I think it comes down to those three very simple things- Yeah ... which is, you know, how are we performing with our distributors? And that isn't just about the 400, right? The 400 has a multiplier inside of it, of the number of reps that they have inside those agreements, and it's for us to not only get to that distributor first and start to realize, you know, some growth with them, but it's how do we get wider across their, you know, all of their 1099s as well. So there's a lot of opportunity there. You know, we've got contracted and approved facilities in around 4,000 facilities across the country. On the trailing, we're selling into a little over 1,000 of those, so there's a lot of upside still with just what we have on contract. And then the number of surgeons that we continue to access, you know, is pretty significant, and we'll continue to pursue that in ortho, spine, and then those other specialties. So again, if we can stay really true to those three things, I think you'll see, you know, nice growth coming out of us in the next years. Great. And then you've mentioned distributor contracts a handful of times today. What do those contracts look like? Meaning, are they incentivized to sell your products, or- Yeah, they, I mean- Or sell other- ... they're an extension of our sales force. Yep. Right? And, it's very common in that bone space to see distribution, you know, whether it's spine or orthopedics. But again, they're acting on our behalf. They're, in essence, a lot of ways a customer to us. You know, if you think about our RSM, they're working with those individuals, they're being, you know, an educator of sorts with our products. They're coming alongside cases as well, and really working together to make sure that the surgeons are properly educated on our technologies and the product is used appropriately. Perfect. Any other questions from the audience? All right, if not, I'll leave the floor to you for any closing remarks, or we can go get some more coffee. No, I'll... I'm happy to leave with a closing remark. So again, you know, really proud just for the opportunity to move into the CEO role. Ron, like I said, has done a great job of shaping that leadership team. Where we sit as an organization, we're really staged nicely for the upcoming years as well, and, at Sanara, we're really proud of the work that we've done so far, but we know we've got a lot in front of us. Great. Well, thank you for being here. Thank you. Thank you.