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SANUWAVE Health Reports Second Quarter 2022 Financial Results & Will Host Live Conference Call With Business Update

Eden Prairie, MN - (NewMediaWire) - August 15, 2022 - SANUWAVE Health, Inc. (OTCPK: SNWV), a leading provider of next-generation wound care products, reported financial results for their second quarter ending June 30, 2022, with the SEC on Friday, August 12, 2022. The Company will host a live conference call on Tuesday, August 16, 2022, at 12:30 (EDT) to provide a business update (Dial-in information below).

Quarter Highlights:

  • Over 50 systems placed to treat wounds  
    • 100% increase from the 25 systems placed in Q2 2021
  • Over 40,000 wound treatments administered 
    • Up from 31,000 treatments administered in Q2 2021
  • Successfully completed MDSAP audit
  • Company transitioned from Suwanee, GA to Eden Prairie, MN
  • Became current on SEC filings
  • Launched Cosmetic and Orthopedics verticals with initial sales in each

“Our key ENERGY FIRST products, dermaPACE® and UltraMIST®, continue to show strong acceptance and growth due to their robust clinical and financial profiles and increasingly attractive reimbursement, driven by a shift in payor focus to evidence-based medicine in wound care.  As our devices ship and our footprint widens, it has allowed the company to build a high degree of recurring usage revenue.  This effort has been hampered over the past year as the company has also spent significant time and effort on fixing our accounting implementation that did not go as planned.  Disruption from this process flow issue led to late filings, which led to our issues on the OTC and Pink Sheets. It also had a significant financial impact as it drew attention and resources away from growth.  That is in the past, and as we sit today, we are now timely and current in our SEC filings, and the excessive outside costs to fix the problem have abated, lowering our break-even point.  The company is now positioned to focus on profitable growth as we capture the opportunity in the wound care space,” stated Kevin Richardson, CEO.

Quarter Financial Results

Revenues for the quarter, starting April 1, 2022, and ending June 30, 2022, came in at $3.9 million, an increase of $1 million or 33% when compared to the $ 2.9 million for the same period in 2021.  The increased revenue was primarily driven by an increase in sales of the UltraMIST system. The company moved manufacturing from Georgia to Minnesota, which impacted the timing of international shipments resulting in a $100,000 reduction in international revenue year-over-year.

Gross margin increased to 72% from 64% as cost of revenue remained flat.  The improvements were driven due to product mix and more efficient customer service and shipping.   

Operating loss was $2 million compared to $4 million in the year prior.  The improvement is due to an increase in gross income and a reduction in sales, marketing, and R&D expenses.    

Conference Call 

SANUWAVE Health, Inc. will host a live conference call on Tuesday, August 16, 2022, at 12:30 (EDT) to discuss recent business activity, provide an update on SEC filings, and detail strategic initiatives. A visual presentation accompaniment will be made available Tuesday morning via SANUWAVE’s website (https://sanuwave.com/about-us/news/).

Telephone access to the call will be available by dialing the following numbers:

Toll-Free: 1-877-407-0784

International: 1-201-689-8560

A replay will be made available through August 30, 2022:

Toll-Free: 1-844-512-2921

International: 1-412-317-6671

Replay Passcode: 13732361

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 ENERGY FIRST wound care portfolio consists 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. 

MEDIA CONTACT: 

Sabrina Ruelle

Senior Director, Marketing & Program Management

Sabrina.Ruelle@Sanuwave.com

INVESTOR RELATIONS CONTACT:

Kevin Richardson II
Chief Executive Officer
Investor.relations@Sanuwave.com




CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands  
   
Current Assets:Jun. 30, 2022Dec. 31, 2021
Cash $ 1,484  $ 619 
Accounts receivable, net of allowance for doubtful accounts of $0.8 million, respectively1,7492,415
Inventory9251,040
Prepaid expenses and other current assets1,181326
Total Current Assets5,3394,400
Property, Equipment and Other, net5351,118
Other Intangible Assets, net5,4895,841
Goodwill7,2607,260
Total Assets18,62318,619
Current Liabilities:  
Senior secured promissory note payable, in default12,33411,586
Convertible promissory notes payable, in default6,52311,601
Convertible promissory notes, related parties, in default1,5961,596
Short-term loans1,4840
Advances on future cash receipts398446
Accounts payable7,0837,644
Accrued expenses5,9004,394
Accrued employee compensation4,2644,247
Due under factoring agreement1,7921,737
Warrant liability5,2959,614
Current portion of SBA loans272158
Accrued interest3,6002,521
Accrued interest, related parties402289
Current portion of lease liabilities185268
Current portion of contract liabilities6448
Other107114
Total Current Liabilities51,29956,263
Non-current Liabilities  
SBA loans761875
Lease liabilities40118
Contract liabilities295293
Deferred tax liability2828
Total Non-current Liabilities1,1241,314
Total Liabilities52,42357,577
Commitments and Contingencies (Footnote 11)  
STOCKHOLDERS' DEFICIT  
Preferred Stock, par value $0.001, 5,000,000 shares authorized; 6,175, 293, 90 and 8 shares designated Series A, Series B, Series C and Series D, respectively; no shares issued and outstanding at June 30, 2022 and December 31, 202100
Common Stock, par value $0.001, 800,000,000 shares authorized; 529,293,205 and 481,619,621 issued and outstanding at June 30, 2022 December 31, 2021, respectively529482
Additional Paid-in Capital151,409144,582
Accumulated Deficit-185,671-183,949
Accumulated Other Comprehensive Loss-67-73
Total Stockholders' Deficit-33,800-38,958
Total Liabilities and Stockholders' Deficit $ 18,623  $ 18,619 



CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands6 Months Ended
Jun. 30, 2022Jun. 30, 2021
Cash Flows - Operating Activities:  
Net income (loss) $ (1,722) $ (13,552)
Adjustments to reconcile net loss to net cash used by operating activities  
Amortization of intangibles352352
Depreciation94198
Bad debt expense52240
Income tax expense022
Shares issued for services8880
Loss on extinguishment of debt2110
Gain on sale of property and equipment, net-5410
Change in fair value of derivative liabilities-11,343-44
Loss on issuance of debt3,4342,484
Amortization of debt issuance costs and original issue discount1,304719
Accrued interest1,078390
Interest payable, related parties11295
Changes in operating assets and liabilities  
Accounts receivable - trade733218
Inventory115521
Prepaid expenses-855-191
Other assets47-83
Accounts payable-5621,475
Accrued expenses1,4071,350
Accrued employee compensation103553
Contract liabilities-1084
Net Cash Used by Operating Activities-5,201-5,249
Cash Flows - Investing Activities  
Proceeds from sale of property and equipment9480
Purchase of property and equipment0-277
Net Cash Flows Used in Investing Activities948-277
Cash Flows - Financing Activities  
Proceeds from senior promissory notes2,9401,263
Proceeds from short term notes2,1301,033
Proceeds from factoring551,038
Proceeds from warrant exercises1000
Payments of principal on finance leases-121-94
Proceeds from related party advances0125
Net Cash Flows Provided by Financing Activities5,1043,365
Effect of Exchange Rates on Cash14-12
Net Change in Cash During Period865-2,173
Cash at Beginning of Period6192,437
Cash at End of Period1,484264
Supplemental Information:  
Cash paid for interest2,0451,434
Non-cash Investing and Financing Activities:  
Reclassification of warrant liability due to cashless warrant exercise2,1672,030
Warrants issued in conjunction with senior secured promissory note payable2,6540
Common shares issued in conjunction with senior secured promissory note payable3,7200
Embedded conversion option with issuances of convertible debt02,740
Warrant issuance in conjunction with convertible debt $ 0  $ 758 
   

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