EDEN PRAIRIE, MN - (NewMediaWire) - May 12, 2023 - SANUWAVE Health, Inc. (OTCQB: SNWV), a leading provider of next-generation FDA-approved wound care products, today announced 1st quarter 2023 results.

For the three-months ended March 31, 2023:

  • Revenues increased 18% to $3.8 million for Q1 2023 versus $3.2 million for the same period last year. This growth falls within the guidance range of 14-20%, provided on the prior conference call.
  • UltraMist® systems sold increased 12% to 28 for Q1 2023, versus 25 systems for the same period last year.
  • UltraMist® applicator cases sold increased 18% to 3,641, versus 3,093 applicator cases for the same period last year.
  • Gross margin as a percentage of revenue decreased for the three months ended March 31, 2023, to 67% from 72% for the same period last year.
  • Operating loss totaled $2.0 million for the three months ended March 31, 2023, which was flat compared to the same period last year.
  • We anticipate second quarter revenue growth to fall within a range of 15-25%.

Mr. Kevin Richardson, CEO, stated, “We are very pleased with the strong interest we observed from customers at the three conferences we attended.  The Third Annual Leaders in Wound Healing Conference in New Orleans, the Symposium on Advanced Wood Care Spring (SAWC Spring) in National Harbor, MD, and EWMA 2023 Symposium in Milan, Italy.  These conferences were an ideal platform for us to showcase our innovative non-invasive, regenerative medicine solutions for the treatment of chronic wounds.

 

SANUWAVE Health is committed to advancing the field of regenerative medicine and improving patient care. The company's groundbreaking technology has been shown to accelerate the healing of chronic wounds, leading to improved patient outcomes and reduced healthcare costs."

 

Subsequent to the end of the quarter, the company raised an additional approximately $1.2 million in order to maximize flexibility around sales hiring and inventory build.  Terms were consistent with the previous financing. This cash is not reflected in the Q1 statements.

Guidance

The Company has continued to have constrained inventory supply during Q1 2023. Despite this, we anticipate revenue growth of approximately 15% to 25% during Q2 2023, compared to Q2 2022. The company believes that supply is further improving and that we will observe continued increase in revenue growth in Q2 2023.

As previously announced a business update will occur via conference call on May 12, 2022.  Materials for the conference call at 9:00 a.m. EST are included on the company website, www.sanuwave.com/investors.

Telephone access is available by dialing the following numbers:

Conference ID: 13738852

Toll-Free: 1-877-407-0784

Toll/International: 1-201-689-8560

A replay will be available through May 26, shortly after conclusion of the event.

About SANUWAVE

SANUWAVE Health is focused on the research, development, and commercialization of its patented, non-invasive and biological response-activating medical systems for the repair and regeneration of skin, musculoskeletal tissue, and vascular structures.

SANUWAVE’s end-to-end wound care portfolio of regenerative medicine products and product candidates help restore the body’s normal healing processes. SANUWAVE applies and researches its patented energy transfer technologies in wound healing, orthopedic/spine, aesthetic/cosmetic, and cardiac/endovascular conditions.

Forward-Looking Statements

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future business development activities and are thus prospective. Forward-looking statements include all statements that are not statements of historical fact regarding intent, belief or current expectations of the Company, its directors or its officers. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company’s ability to control. Actual results may differ materially from those projected in the forward-looking statements. Among the key risks, assumptions and factors that may affect operating results, performance and financial condition are risks associated with the regulatory approval and marketing of the Company’s product candidates and products, unproven pre-clinical and clinical development activities, regulatory oversight, the Company’s ability to manage its capital resource issues, competition, and the other factors discussed in detail in the Company’s periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statement.

CONTACT:
Kevin Richardson, II
Chief Executive Officer
Investors@Sanuwave.com


PART I -- FINANCIAL INFORMATION
        
ITEM 1. FINANCIAL STATEMENTS     
        
  SANUWAVE HEALTH, INC. AND SUBSIDIARIES
  CONDENSED CONSOLIDATED BALANCE SHEETS
  (UNAUDITED)
  (In thousands, except share data)
        
     March 31, 2023 December 31, 2022
ASSETS
Current Assets:     
 Cash   $106  $1,153 
 Accounts receivable, net of allowance of $1.2 and $1.0 million, respectively   2,969   4,029 
 Inventory   1,071   868 
 Prepaid expenses and other current assets   371   570 
Total Current Assets   4,517   6,620 
 Property, Equipment and Other, net   758   856 
 Intangible Assets, net   4,962   5,137 
 Goodwill   7,260   7,260 
Total Non-current Assets   12,980   13,253 
Total Assets   $17,497  $19,873 
        
LIABILITIES
Current Liabilities:     
 Senior secured debt, in default  $14,996  $14,416 
 Convertible promissory notes payable   16,953   16,713 
 Convertible promissory notes payable, related parties   7,614   7,409 
 Accounts payable   5,264   4,400 
 Accrued expenses   8,550   8,512 
 Due under factoring ageement   1,631   2,130 
 Warrant liability   9,264   1,416 
 Accrued interest   4,981   4,052 
 Accrued interest, related parties   1,081   788 
 Current portion of contract liabilities   62   60 
 Other    255   291 
Total Current Liabilities   70,651   60,187 
Non-current Liabilities     
 Lease liabilities   384   438 
 Contract liabilities   225   230 
 Deferred tax liability   28   28 
Total Non-currrent Liabilities   637   696 
Total Liabilities  $71,288  $60,883 
        
Commitments and Contingencies (Footnote 11)     
        
STOCKHOLDERS' DEFICIT
        
Preferred Stock, par value $0.001, 5,000,000 shares authorized;     
 6,175 shares Series A, 293 shares Series B, 90 shares Series C and 8 shares Series D$-  $- 
 no shares issued and outstanding at March 31, 2023 and December 31, 2022    
Common Stock, par value $0.001, 2,500,000,000 shares authorized; 555,637,651 and 548,737,651  
 issued and outstanding at March 31, 2023 December 31, 2022, respectively  556   549 
Additional Paid-in Capital   153,046   152,750 
Accumulated Deficit   (207,322)  (194,242)
Accumulated Other Comprehensive Loss   (71)  (67)
Total Stockholders' Deficit   (53,791)  (41,010)
Total Liabilities and Stockholders' Deficit  $17,497  $19,873 
        
The accompanying notes to condensed consolidated financial statement are an integral part of these financial statements.



SANUWAVE HEALTH, INC. AND SUBSIDIARIES 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS 
(UNAUDITED)
(In thousands, except share data)
        
    Three Months Ended March 31, 
     2023   2022  
Revenue  $3,775  $3,195  
Cost of Revenues   1,262   889  
Gross Margin   2,513   2,306  
        
Operating Expenses:     
 General and administrative  2,759   2,205  
 Selling and marketing  1,412   1,715  
 Research and development  131   166  
 Depreciation and amortization  189   176  
Total Operating Expenses  4,491   4,262  
        
Operating Loss   (1,978)  (1,956) 
        
Other Income (Expense):     
 Interest expense  (3,512)  (3,136) 
 Interest expense, related party  (766)  (56) 
 Change in fair value of derivative liabilities  (6,797)  3,482  
 Loss on issuance of debt  -   (3,434) 
 Other expense   (27)  -  
 Gain / (loss) on foreign currency exchange  -   (1) 
Total Other Expense  (11,102)  (3,145) 
        
Net Loss before Income Taxes  (13,080)  (5,101) 
        
Provision for Income Taxes  -   -  
        
Net Loss   (13,080)  (5,101) 
        
Other Comprehensive Loss     
 Foreign currency translation adjustments  (4)  -  
        
Total Comprehensive Loss $(13,084) $(5,101) 
        
Loss per Share:      
 Basic and Diluted $(0.02) $(0.01) 
Weighted average shares outstanding, basic and diluted  575,028,811   525,414,534  
        
The accompanying notes to condensed consolidated financial
statements are an integral part of these financial statements.



 SANUWAVE HEALTH, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT
 (UNAUDITED)
 (In thousands, except share data)
                  
Three Months Ended March 31, 2023
   Preferred Stock Common Stock        
   Number of   Number of       Accumulated 
   Shares   Shares       Other  
   Issued and   Issued and   Additional Paid- AccumulatedComprehensive
   Outstanding Par Value Outstanding Par Value in Capital Deficit Loss Total
                  
Balances as of December 31, 2022- $- 548,737,651 $549 $152,750 $(194,242)$(67) $(41,010)
 Shares issued for services -  - 6,900,000  7  296  -     303 
 Net loss -  - -  -- -  (13,080)-  -   (13,080)
 Foreign currency translation adjustment-  - -  -  -  -   (4)  (4)
                  
Balances as of March 31, 2023 - $- 555,637,651 $556 $153,046 $(207,322) $(71) $(53,791)
                  
Three Months Ended March 31, 2022
   Preferred Stock Common Stock        
   Number of   Number of       Accumulated 
   Shares   Shares       Other  
   Issued and   Issued and   Additional Paid- AccumulatedComprehensive
   Outstanding Par Value Outstanding Par Value in Capital Deficit Loss Total
                  
Balances as of December 31, 2021- $- 481,619,621 $482 $144,582 $(183,949)$(73) $(38,958)
 Cashless warrant exercise -  - 14,000,000  14  2,152  -   -   2,166 
 Warrant exercise -  - 909,091  1  99  -   -   100 
 Shares issued in conjunction with Note Payable -  - 20,666,993  20  3,700  -   -   3,720 
 Net loss -  - -  -- -  (5,101)-  -   (5,101)
 Foreign currency translation adjustment-  - -  -  -  -   6   6 
                  
Balances as of March 31, 2022 - $- 517,195,705 $517 $150,533 $(189,050) $(67) $(38,067)
                  
 The accompanying notes to condensed consolidated financial
 statements are an integral part of these financial statements.




 SANUWAVE HEALTH, INC. AND SUBSIDIARIES     
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS     
 (UNAUDITED)     
 (In thousands)     
       
    Three Months Ended March 31,
     2023  2022 
Cash Flows - Operating Acivities:     
Net loss   (13,080) (5,101)
Adjustments to reconcile net loss to net cash used by operating activities     
 Depreciation and Amortization   259  191 
 Bad debt expense   156   - 
 Change in fair value of derivative liabilities   6,797  (3,482)
 Loss on issuance of debt    -  3,434 
 Amortization of debt issuance costs and original issue discount   1,931  889 
 Accrued interest   1,365  667 
 Changes in operating assets and liabilities     
 Accounts receivable - trade   906  804 
 Inventory   (203) 39 
 Prepaid expenses and other assets   195  4 
 Accounts payable   864  (866)
 Accrued expenses   450  444 
 Contract liabilties   (11) (155)
Net Cash Used in Operating Activities   (371) (3,132)
       
Cash Flows - Investing Activities     
 Proceeds from sale of property and equipment    -  360 
 Purchase of property and equipment   (18)  - 
Net Cash Flows Provided by (Used in) Investing Activities   (18) 360 
       
Cash Flows - Financing Activities     
 Proceeds from senior promissory notes    -  2,940 
 Payments to factoring agent, net   (610) (505)
 Proceeds from warrant exercises    -  100 
 Payments of principal on finance leases   (44) (65)
Net Cash Flows Provided by Financing Activities   (654) 2,470 
       
Effect of Exchange Rates on Cash   (4) (4)
       
Net Change in Cash During Period   (1,047) (306)
       
Cash at Beginning of Period   1,153  619 
Cash at End of Period   106  313 
       
Supplemental Information:     
 Cash paid for interest   908  574 
       
Non-cash Investing and Financing Activities:     
 Reclassification of warrant liability due to cashless warrant exercise  $ -  2,167 
 Warrants issued in conjunction with senior secured promissory note payable    -  2,654 
 Common shares issued in conjunction with senior secured promissory note payable   -  3,720 
 Common shares issued for advisory shares   302   - 
       
       
 The accompanying notes to condensed consolidated financial statements are an integral part of these financial statements.


 

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