First Quarter 2023 Financial Highlights, year-over-year:<\/span><\/b><\/p>\n \n\u201cBiote generated solid financial performance in the first quarter of 2023, driven by an approximately 21% increase in revenue, as we continued to effectively serve patients who wish to age healthfully and feel their best,\u201d said Terry Weber, Biote Chief Executive Officer. \u201cOverall, our first quarter results underscore the continued strong profitability of our capital-light business model that is designed to enhance patient health outcomes and deliver economic value for practitioners.<\/p>\n \n\u201cDuring the quarter, we launched a new initiative to accelerate our expansion into the large and growing men\u2019s health market. Approximately 20 million men over age 45 suffer from low testosterone, yet only a small percentage currently receive treatment for this condition. To better address this significant unmet medical need, we are strengthening our focus on serving men\u2019s healthcare practitioners throughout the United States. This strategic initiative aligns with our enduring mission to be the leading provider of hormone replacement education, resources and support.\u201d<\/p>\n \nMs. Weber continued, \u201cConsistent with our efforts to enhance shareholder value, we remain committed to improving our capital structure. To this end, we are announcing today a warrant exchange offer and consent solicitation, aimed at reducing the potential dilutive impact of outstanding warrants.\u201d<\/p>\n 2023 First Quarter Financial Review<\/b><\/p>\n \nRevenue for the first quarter of 2023 was $44.8 million, an increase of 20.7% from $37.1 million for the first quarter of 2022. The increase was driven by procedure revenue growth of 13.8% and dietary supplement revenue growth of 46.0%.<\/p>\n \nGross profit margin for the first quarter of 2023 was 69.1% compared to 66.9% for the first quarter of 2022. The increase in gross profit margin reflected effective cost management.<\/p>\n \nOperating income for the first quarter of 2023 was $7.9 million, a decrease of 19.3% from $9.8 million in the first quarter of 2022. The decrease in operating income was due to higher SG&A expense, which included $2.2 million in stock compensation expense and other non-recurring expenses of $2.5 million, as well as higher marketing and selling expenses to support strategic expansion in new geographic markets.<\/p>\n \nNet loss for the first quarter of 2023 was $(21.4) million, or $(0.39) per share, compared to net income of $9.4 million for the first quarter of 2022. Net income decreased as the result of lower operating income, increased interest expense and a net change in the fair value adjustments to warrant and earnout liabilities of $27.0 million in the first quarter.<\/p>\n \nAdjusted EBITDA for the first quarter of 2023 was $13.1 million compared to $11.7 million for the first quarter of 2022. The 12.4% increase in Adjusted EBITDA was driven by the growth in revenue and improved gross profit, partially offset by increased operating expenses to support our growth and geographic expansion.2<\/sup><\/p>\n Warrant Exchange Offer<\/b><\/p>\n \nToday, the company launched an exchange offer (the \u201cOffer\u201d) and consent solicitation (the \u201cConsent Solicitation\u201d) relating to its outstanding warrants to acquire shares of Class A Common Stock (the \u201cWarrants\u201d). Pursuant to the offering, each warrant holder whose Warrants are exchanged will receive 0.23 shares of our Class A Common Stock for each warrant. Parties representing approximately 19.4% of the publicly traded Warrants and approximately 59.3% of the privately held Warrants have agreed to tender their Warrants in the Offer.<\/p>\n \nThe Offer and Consent Solicitation are being made pursuant to a registration statement on Form S-4 (the \u201cProspectus\/Offer to Exchange\u201d), dated May 9, 2023, and Schedule TO, dated May 9, 2023 (the \u201cSchedule TO\u201d), each of which have been filed with the U.S. Securities and Exchange Commission (the \u201cSEC\u201d) and more fully set forth the terms and conditions of the Offer and Consent Solicitation.<\/p>\n \nThe Company has engaged Roth Capital Partners, LLC as financial advisor for the Offer and Consent Solicitation. Any questions or requests for assistance concerning the Offer and Consent Solicitation may be directed to Roth Capital Partners, LLC at the following email address: rothecm@roth.com<\/a>. D.F. King & Co., Inc. has been appointed as the Information Agent for the Offer and Consent Solicitation, and Continental Stock Transfer & Trust Company has been appointed as the Exchange Agent. Requests for documents should be directed to D.F. King & Co., Inc. at (877) 732-3614 or via the following email address: btmd@dfking.com<\/a>.<\/p>\n 2023 Financial Outlook<\/b><\/p>\n \n\u201cWe are maintaining our 2023 guidance as Biote remains on track for continued growth in revenue and Adjusted EBITDA. Our financial forecast assumes stronger revenue growth and Adjusted EBITDA performance in the second half of this year as compared to the first half, as we begin to benefit from the contributions of sales personnel added at the end of 2022. We continue to invest to strengthen our infrastructure and capabilities while further expanding our sales team,\u201d concluded Ms. Weber.<\/p>\n\n