SANUWAVE Announces Q1 2023 Financial Results

EDEN PRAIRIE, MN, May 12, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire - 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-			Accumulated					Comprehensive
			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-			Accumulated					Comprehensive
			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.