EX-99.1 2 brhc10044117_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1


FOR IMMEDIATE RELEASE

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

SANUWAVE Announces Q3 earnings

EDEN PRARIE, MN, November 14, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – SANUWAVE Health, Inc. (OTCPK: SNWV), a leading provider of next-generation FDA-approved wound care products, today announced 3rd quarter results.

For the three-months and nine-months ended September 30, 2022:

 •
Revenues increased 12% to $4.2 million for the 3 months ended September 30, 2022, versus $3.7 million for the same period last year.

•
Revenue for the nine-months ended September 30, 2022, totaled approximately $11.2 million versus $8.7 million for the same period in the prior year, an increase of 28.5%.

•
Gross margin also improved period over period to 85% from 58% a year ago and to 77% versus 58% for the nine-months ended September 30, 2022.

•
Operating loss continued to decrease from the prior year.  Operating loss for the three-months ended September 30, 2022, totaled $1.8 million as compared to the prior year at $3.4 million. Operating expense for the nine-months ended September 30, 2022, totaled $13.9 million, a decrease of 17.6% over the same period in the prior year.

Mr. Kevin Richardson, CEO, stated, “We are very pleased with third quarter results which showed revenue growth year on year despite ongoing capacity constraints.  Our focus is increasing sales at an accelerated rate as we ramp up capacity during the fourth quarter and into 2023.  We have also decreased our operating expenses over the past year to a level where we can achieve profitable growth.”

“As a result of our efforts to improve profitability and manage our expenses, the company is pleased to announce that it became EBITDA positive in the month of October and expects to continue this for Q4 as a whole.”

Subsequent to the end of the quarter, the company raised an additional approximately $2 million in order to maximize flexibility around sales hiring and inventory build.  Terms were consistent with the August financing.  This cash is not reflected in the Q3 statements.

As previously announced a business update will occur via conference call on November 15, 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: 13734492
Toll-Free: 1-877-407-0784
Toll/International: 1-201-689-8560
A replay will be available through November 29, 2022, 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
 
SANUWAVE HEALTH, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In thousands, except share data)

   
September 30, 2022
    
December 31, 2021
  
ASSETS
            
Current Assets:
            
Cash
  
$
1,112
    
$
619
  
Accounts receivable, net of allowance for doubtful accounts of $0.8 million, respectively
    
2,403
      
2,415
  
Inventory
    
1,413
      
1,040
  
Prepaid expenses and other current assets
    
1,935
      
326
  
Total Current Assets
    
6,863
      
4,400
  
Property, Equipment and Other, net
    
673
      
1,118
  
Other Intangible Assets, net
    
5,313
      
5,841
  
Goodwill
    
7,260
      
7,260
  
Total Assets
  
$
20,109
    
$
18,619
  

               
LIABILITIES
                
Current Liabilities:
                
Senior secured promissory note payable, in default
  
$
12,773
    
$
11,586
  
Convertible promissory notes payable, in default
    
4,000
      
11,601
  
Convertible promissory notes, related parties, in default
    
1,373
      
1,596
  
Convertible promissory notes payable
    
9,174
      
-
  
Convertible promissory notes payable, related parties
    
4,485
      
-
  
Advances on future cash receipts
    
194
      
446
  
Accounts payable
    
5,055
      
7,644
  
Accrued expenses
    
4,100
      
4,394
  
Accrued employee compensation
    
3,792
      
4,247
  
Due under factoring ageement
    
1,510
      
1,737
  
Warrant liability
    
1,196
      
9,614
  
Current portion of SBA loans
    
-
      
158
  
Accrued interest
    
3,988
      
2,521
  
Accrued interest, related parties
    
546
      
289
  
Current portion of lease and contract liabilities
    
249
      
316
  
Other
    
30
      
114
  
Total Current Liabilities
    
52,465
      
56,263
  
Non-current Liabilities
                
SBA loans
    
-
      
875
  
Lease liabilities
    
263
      
118
  
Contract liabilities
    
205
      
293
  
Deferred tax liability
    
28
      
28
  
Total Non-currrent Liabilities
    
496
      
1,314
  
Total Liabilities
    
52,961
      
57,577
  

               
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 September 30, 2022 and December 31, 2021
    
-
      
-
  
Common Stock, par value $0.001, 800,000,000 shares authorized; 548,737,651 and 481,619,621
issued and outstanding at September 30, 2022 December 31, 2021, respectively
    
549
      
482
  
Additional Paid-in Capital
    
152,750
      
144,582
  
Accumulated Deficit
    
(186,084
)
    
(183,949
)
Accumulated Other Comprehensive Loss
    
(67
)
    
(73
)
Total Stockholders' Deficit
    
(32,852
)
    
(38,958
)
Total Liabilities and Stockholders' Deficit
  
$
20,109
    
$
18,619
  

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 INCOME (LOSS)
(UNAUDITED)
(In thousands, except share data)


  
Three Months Ended September 30,
    
Nine Months Ended September 30,
  

 
2022
    
2021
    
2022
    
2021
  
Revenues:
                        
Accessory and parts revenue
  
$
3,012
    
$
2,067
    
$
7,866
    
$
5,645
  
Product
    
902
      
1,299
      
2,408
      
2,066
  
Rental Income
    
247
      
333
      
935
      
864
  
License fees and other
    
5
      
26
      
33
      
175
  
Total Revenue
    
4,166
      
3,725
      
11,242
      
8,750
  
                                 
Cost of Revenues
    
606
      
1,555
      
2,590
      
3,658
  
                                 
Gross Margin
    
3,560
      
2,170
      
8,652
      
5,092
  
                                 
Operating Expenses:
                                
General and administrative
    
3,404
      
2,864
      
8,482
      
8,909
  
Selling and marketing
    
1,650
      
2,150
      
5,037
      
6,450
  
Research and development
     157      
297
      
494
      
923
  
Gain on disposal of assets
    
-
 
    
-
      
(690
)
    
-
  
Depreciation and amortization
    
189
      
194
      
575
      
585
  
Total Operating Expenses
    
5,400
      
5,505
      
13,898
      
16,867
  
                                 
Operating Loss
    
(1,840
)
    
(3,335
)
    
(5,246
)
    
(11,775
)
                                 
Other Income (Expense):
                                
Interest expense
    
(3,301
)
    
(1,781
)
    
(9,203
)
    
(4,340
)
Interest expense, related party
    
(439
)
    
(55
)
    
(551
)
    
(150
)
Change in fair value of derivative liabilities
    
5,252
      
1,555
      
16,597
      
1,599
  
Loss on issuance of debt
    
-
      
(1,088
)
    
(3,434
)
    
(3,572
)
Gain / (loss) on extinguishment of debt
    
(86
)
    
460
      
(297
)
    
460
  
Gain / (loss) on foreign currency exchange
    
1
      
(2
)
    
(1
)
    
2
  
Other Income (Expense), net
    
1,427
      
(911
)
    
3,111
      
(6,001
)
                                 
Net Loss before Income Taxes
    
(413
)
    
(4,246
)
    
(2,135
)
    
(17,776
)
                                 
Provision for Income Taxes
    
-
      
6
      
-
      
28
  
                                 
Net Loss
    
(413
)
    
(4,252
)
    
(2,135
)
    
(17,804
)
                                 
Other Comprehensive Loss
                                
Foreign currency translation adjustments
    
-
      
-
      
-
      
(12
)
                                 
Total Comprehensive Loss
  
$
(413
)
  
$
(4,252
)
  
$
(2,135
)
  
$
(17,816
)
                                 
Loss per Share:
                                
Basic and Diluted
  
$
(0.00
)
  
$
(0.01
)
  
$
(0.00
)
  
$
(0.03
)
                                 
Weighted average shares outstanding, basic and diluted
                          
Basic and Diluted
    
561,069,625
      
518,310,781
      
542,484,779
      
518,370,156
  

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)

   
Nine Months Ended September 30,
  
   
2022
    
2021
  
Cash Flows - Operating Acivities:
            
Net loss
  
$
(2,135
)
  
$
(17,804
)
Adjustments to reconcile net loss to net cash used by operating activities
                
Depreciation and Amortization
    
681
      
970
  
Bad debt expense
    
62
      
307
  
Income tax expense
    
-
      
28
  
Shares issued for service
    
888
      
-
  
Loss (Gain) on extinguishment of debt
    
297
      
(460
)
Gain on sale of property and equipment, net
    
(690
)
    
-
  
Change in fair value of derivative liabilities
    
(16,597
)
    
(1,599
)
Loss on issuance of debt
    
3,434
      
3,572
  
Amortization of debt issuance costs and original issue discount
    
2,998
      
1,418
  
Accrued interest
    
1,618
      
929
  
Interest payable, related parties
    
168
      
150
  
Changes in operating assets and liabilities
                
Accounts receivable - trade
    
69
      
(345
)
Inventory
    
(373
)
    
1,430
  
Prepaid expenses and other assets
    
(1,437
)
    
(355
)
Accounts payable
    
(1,863
)
    
2,656
  
Accrued expenses
    
271
      
1,652
  
Accrued employee compensation
    
(473
)
    
885
  
Contract liabilties
    
(94
)
    
60
  
Net Cash Used in Operating Activities
    
(13,176
)
    
(6,506
)
                 
Cash Flows - Investing Activities
                
Proceeds from sale of property and equipment
    
1,022
      
-
  
Purchase of property and equipment
    
-
      
(441
)
Net Cash Flows Provided by (Used in) Investing Activities
    
1,022
      
(441
)
                 
Cash Flows - Financing Activities
                
Proceeds from senior promissory notes
    
2,940
      
940
  
Proceeds from short term notes
    
640
      
125
  
Proceeds from factoring, net
    
(227
)
    
1,244
  
Proceeds from SBA loan
    
-
      
1,033
  
Proceeds from warrant exercises
    
100
      
-
  
Proceeds from convertible promissory notes
    
12,366
      
1,928
  
Payments of principal on finance leases
    
(174
)
    
(143
)
Payments of principal on convertible promissory notes, related parties, convertible promissory notes and SBA loans
    
(2,981
)
    
(237
)
Net Cash Flows Provided by Financing Activities
    
12,664
      
4,890
  
                 
Effect of Exchange Rates on Cash
    
(17
)
    
(53
)
                 
Net Change in Cash During Period
    
493
      
(2,110
)
                 
Cash at Beginning of Period
    
619
      
2,437
  
Cash at End of Period
  
$
1,112
    
$
327
  
                 
Supplemental Information:
                
Cash paid for interest
  
$
3,345
    
$
1,993
  
                 
Non-cash Investing and Financing Activities:
                
Reclassification of warrant liability due to cashless warrant exercise
  
$
2,166
    
$
2,030
  
Settlement of debt and warrants with stock
    
1,361
    
$
-
  
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
      
-
  
Embedded conversion option with issuances of convertible debt
    
2,309
      
2,740
  
Working capital balances refinanced into Convertible notes payable
    
2,273
      
-
  
Warrant issuance in conjunction with convertible debt
    
1,463
      
758
  

The accompanying notes to condensed consolidated financial statements are an integral part of these financial statements.