■ |
Revenue for the three months ended March 31, 2024, totaled $5.8 million, an increase of 53%, as compared to $3.8 million for the same period of 2023. This growth is within the previous guidance for a 45 - 55% increase.
|
■ |
43 UltraMist® systems were sold in Q1 2024, up from 28 in Q1 2023, and down from 79 in Q4 2023.
|
■ |
UltraMist® consumables revenue increased by 64% to $4.1 million (71% of revenues) in Q1 2024, versus $2.5 million for the same quarter last year. UltraMIST systems and consumables remained the primary revenue growth driver and continued to represent in excess of 90% of SANUWAVE's overall revenues in Q1 2024.
|
■ |
Gross margin as a percentage of revenue amounted to 73% for the three months ended March 31, 2024, vs. 67% for the same period last year, driven by the increase in average selling price of UltraMist® and stabilization of cost of sales in 2024.
|
■ |
For the three months ended March 31, 2024, operating loss totaled $1.1 million, an improvement of $0.9 million compared to Q1 2023 as a result of the Company's continued efforts to drive profitable growth and manage expenses.
|
■ |
Net loss for the first quarter of 2024 was $4.5 million, driven predominantly by the change in the fair value of derivative liabilities, and interest expense.
|
■ |
Adjusted EBITDA 1 loss for the three months ended March 31, 2024, was $59 thousand versus an Adjusted EBITDA loss of $1.8 million for the same period last year, an improvement of $1.7 million.
|
• |
Do not reflect every expenditure, future requirements for capital expenditures or contractual commitments.
|
• |
Do not reflect all changes in our working capital needs.
|
• |
Do not reflect interest expense, or the amount necessary to service our outstanding debt.
|
(in thousands)
|
2024
|
2023
| ||||||
Revenue
|
$
|
5,786
|
$
|
3,775
| ||||
Cost of Revenues
|
1,584
|
1,262
| ||||||
Gross Margin
|
4,202
|
2,513
| ||||||
Gross Margin %
|
72.6
|
%
|
66.6
|
%
| ||||
Total operating expenses
|
5,252
|
4,491
| ||||||
Operating Loss
|
$
|
(1,050
|
)
|
$
|
(1,978
|
)
| ||
Total other expense
|
(3,478
|
)
|
(11,102
|
)
| ||||
Net Loss
|
$
|
(4,528
|
)
|
$
|
(13,080
|
)
|
(in thousands)
|
2024
|
2023
| ||||||
Net loss
|
$
|
(4,528
|
)
|
$
|
(13,084
|
)
| ||
Non-GAAP Adjustments:
| ||||||||
Interest expense
|
3,560
|
4,278
| ||||||
Depreciation and amortization
|
218
|
189
| ||||||
EBITDA
|
(750
|
)
|
(8,617
|
)
| ||||
Non-GAAP Adjustments for Adjusted EBITDA:
| ||||||||
Change in fair value of derivative liabilities
|
2,501
|
6,797
| ||||||
Other non-cash or non-recurring charges:
| ||||||||
Loss on extinguishment of debt
|
105
|
-
| ||||||
Severance agreement and legal settlement
|
585
|
-
| ||||||
License and option agreement
|
(2,500
|
)
|
-
| |||||
Adjusted EBITDA
|
$
|
(59
|
)
|
$
|
(1,820
|
)
|
(In thousands, except share data)
|
March 31, 2024
|
December 31, 2023
| ||||||
ASSETS
| ||||||||
Current Assets:
| ||||||||
Cash
|
$
|
2,936
|
$
|
1,797
| ||||
Accounts receivable, net of allowance of $1,237 and $1,237, respectively
|
3,008
|
3,314
| ||||||
Inventory
|
2,461
|
2,951
| ||||||
Prepaid expenses and other current assets
|
2,426
|
1,722
| ||||||
Total Current Assets
|
10,831
|
9,784
| ||||||
Non-Current Assets:
| ||||||||
Property, equipment and right of use assets, net
|
975
|
938
| ||||||
Intangible assets, net
|
4,258
|
4,434
| ||||||
Goodwill
|
7,260
|
7,260
| ||||||
Total Non-Current Assets
|
12,493
|
12,632
| ||||||
Total Assets
|
$
|
23,324
|
$
|
22,416
| ||||
LIABILITIES
| ||||||||
Current Liabilities:
| ||||||||
Senior secured debt, in default
|
$
|
18,910
|
$
|
18,278
| ||||
Convertible promissory notes payable
|
7,477
|
5,404
| ||||||
Convertible promissory notes payable, related parties
|
2,527
|
1,705
| ||||||
Asset-backed secured promissory notes payable
|
-
|
3,117
| ||||||
Asset-backed secured promissory notes payable, related parties
|
-
|
1,458
| ||||||
Accounts payable
|
5,062
|
5,705
| ||||||
Accrued expenses
|
6,849
|
5,999
| ||||||
Factoring liabilities
|
1,561
|
1,490
| ||||||
Warrant liability
|
19,818
|
14,447
| ||||||
Accrued interest
|
6,118
|
5,444
| ||||||
Accrued interest, related parties
|
786
|
669
| ||||||
Current portion of contract liabilities
|
107
|
92
| ||||||
Other
|
969
|
947
| ||||||
Total Current Liabilities
|
70,184
|
64,755
| ||||||
Non-Current Liabilities:
| ||||||||
Lease liabilities
|
395
|
492
| ||||||
Contract liabilities
|
340
|
347
| ||||||
Total Non-Current Liabilities
|
735
|
839
| ||||||
Total Liabilities
|
$
|
70,919
|
$
|
65,594
| ||||
STOCKHOLDERS' DEFICIT
| ||||||||
Preferred stock, par value $0.001, 5,000,000 shares authorized, 6,175 Series A, 293 Series B, 90 Series C, and 8 Series D designated shares, respectively; no shares issues and outstanding at 2023 and 2022
|
$
|
-
|
$
|
-
| ||||
Common stock, par value $0.001, 2,500,000,000 shares authorized, 1,140,559,527 issued and outstanding at March 31, 2024 and December 31, 2023, respectively
|
1,140
|
1,140
| ||||||
Additional paid-in capital
|
175,842
|
175,842
| ||||||
Accumulated deficit
|
(224,577
|
)
|
(220,049
|
)
| ||||
Accumulated other comprehensive loss
|
-
|
(111
|
)
| |||||
Total Stockholders' Deficit
|
(47,595
|
)
|
(43,178
|
)
| ||||
Total Liabilities and Stockholders' Deficit
|
$
|
23,324
|
$
|
22,416
|
Three Months Ended March 31,
| ||||||||
(In thousands, except share and per share data)
|
2024
|
2023
| ||||||
Revenue
|
$
|
5,786
|
$
|
3,775
| ||||
Cost of revenues
|
1,584
|
1,262
| ||||||
Gross Margin
|
4,202
|
2,513
| ||||||
Operating Expenses:
| ||||||||
General and administrative
|
3,675
|
2,759
| ||||||
Selling and marketing
|
1,232
|
1,412
| ||||||
Research and development
|
163
|
131
| ||||||
Depreciation and amortization
|
182
|
189
| ||||||
Total Operating Expenses
|
5,252
|
4,491
| ||||||
Operating Loss
|
(1,050
|
)
|
(1,978
|
)
| ||||
Other Income (Expense)
| ||||||||
Interest expense
|
(3,237
|
)
|
(3,512
|
)
| ||||
Interest expense, related party
|
(323
|
)
|
(766
|
)
| ||||
Loss on extinguishment of debt
|
(105
|
)
|
-
| |||||
Change in fair value of derivative liabilities
|
(2,501
|
)
|
(6,797
|
)
| ||||
Other expense
|
(102
|
)
|
(27
|
)
| ||||
Other income
|
2,790
|
-
| ||||||
Total Other Expense
|
(3,478
|
)
|
(11,102
|
)
| ||||
Net Loss
|
$
|
(4,528
|
)
|
$
|
(13,080
|
)
| ||
Other Comprehensive Loss
| ||||||||
Foreign currency translation adjustments
|
111
|
(4
|
)
| |||||
Total Comprehensive Loss
|
$
|
(4,417
|
)
|
$
|
(13,084
|
)
| ||
Loss per Share:
| ||||||||
Net loss per share, basic and diluted
|
$
|
-
|
$
|
(0.02
|
)
| |||
Weighted average shares outstanding, basic and diluted
|
1,162,250,687
|
575,028,811
|
(In thousands, except share data)
| ||||||||||||||||||||||||
Common Stock
| ||||||||||||||||||||||||
Shares Issued and
Outstanding
|
Par Value
|
Additional Paid-in Capital
|
Accumulated Deficit
|
Accumulated Other Comprehensive Loss
|
Total
| |||||||||||||||||||
Balances as of December 31, 2023
|
1,140,559,527
|
$
|
1,140
|
$
|
175,842
|
$
|
(220,049
|
)
|
$
|
(111
|
)
|
$
|
(43,178
|
)
| ||||||||||
Net loss
|
-
|
-
|
-
|
(4,528
|
)
|
-
|
(4,528
|
)
| ||||||||||||||||
Foreign currency translation adjustment
|
-
|
-
|
-
|
-
|
111
|
111
| ||||||||||||||||||
Balances as of March 31, 2024
|
$
|
1,140,559,527
|
$
|
1,140
|
$
|
175,842
|
$
|
(224,577
|
)
|
$
|
-
|
$
|
(47,595
|
)
|
Common Stock
| ||||||||||||||||||||||||
Shares Issued and
Outstanding
|
Par Value
|
Additional Paid-in Capital
|
Accumulated Deficit
|
Accumulated Other Comprehensive Loss
|
Total
| |||||||||||||||||||
Balances as of December 31, 2022
| ||||||||||||||||||||||||
Shares issued for services
|
548,737,651
|
$
|
549
|
$
|
152,750
|
$
|
(194,242
|
)
|
$
|
(67
|
)
|
$
|
(41,010
|
)
| ||||||||||
Shares issued for settlement of debt and warrants
|
6,900,000
|
7
|
296
|
-
|
-
|
303
| ||||||||||||||||||
Net loss
|
-
|
-
|
-
|
(13,080
|
)
|
-
|
(13,080
|
)
| ||||||||||||||||
Foreign currency translation adjustment
|
-
|
-
|
-
|
-
|
(4
|
)
|
(4
|
)
| ||||||||||||||||
Balances as of March 31, 2023
|
1,696,197,178
|
$
|
556
|
$
|
153,046
|
$
|
(207,322
|
)
|
$
|
(71
|
)
|
$
|
(53,791
|
)
|
Three Months Ended March 31,
| ||||||||
(In thousands)
|
2024
|
2023
| ||||||
Cash Flows - Operating Activities:
| ||||||||
Net loss
|
$
|
(4,528
|
)
|
$
|
(13,080
|
)
| ||
Adjustments to reconcile net loss to net cash used by operating activities
| ||||||||
Depreciation and amortization
|
218
|
259
| ||||||
Bad debt expense
|
147
|
156
| ||||||
Loss on extinguishment of debt
|
105
|
-
| ||||||
Change in fair value of derivative liabilities
|
2,501
|
6,797
| ||||||
Amortization of debt issuance and debt discounts
|
1,553
|
1,931
| ||||||
Accrued interest
|
955
|
1,365
| ||||||
Changes in operating assets and liabilities
| ||||||||
Accounts receivable
|
152
|
906
| ||||||
Inventory
|
490
|
(203
|
)
| |||||
Prepaid expenses and other assets
|
192
|
195
| ||||||
Accounts payable
|
(643
|
)
|
864
| |||||
Accrued expenses
|
(20
|
)
|
450
| |||||
Contract liabilites
|
(22
|
)
|
(11
|
)
| ||||
Net Cash Provided by/ (Used in) Operating Activities
|
1,100
|
(371
|
)
| |||||
Cash Flows - Investing Activities
| ||||||||
Purchase of property and equipment
|
(114
|
)
|
(18
|
)
| ||||
Net Cash Flows Used In Investing Activities
|
(114
|
)
|
(18
|
)
| ||||
Cash Flows - Financing Activities
| ||||||||
Proceeds from factoring
|
71
|
(610
|
)
| |||||
Principal payments on finance leases
|
(29
|
)
|
(44
|
)
| ||||
Net Cash Flows Provided by /(Used In) Financing Activities
|
42
|
(654
|
)
| |||||
Effect of Exchange Rates on Cash
|
111
|
(4
|
)
| |||||
Net Change in Cash During Period
|
1,139
|
(1,047
|
)
| |||||
Cash at Beginning of Period
|
1,797
|
1,153
| ||||||
Cash at End of Period
|
$
|
2,936
|
$
|
106
| ||||
Supplemental Information:
| ||||||||
Cash paid for interest
|
$
|
971
|
$
|
908
| ||||
Non-Cash Investing and Financing Activities:
| ||||||||
Warrants issued in conjunction with senior secured promissory note payable and
| ||||||||
convertible promissory notes payable
|
$
|
2,784
|
$
|
-
| ||||
Conversion of asset-backed secured promissory notes to convertible promissory notes
|
2,584
|
-
| ||||||
Common shares issued for advisory shares
|
-
|
302
|
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SANUWAVE Health Inc. published this content on 10 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 May 2024 11:19:04 UTC.