EX-99.2 3 brhc10044117_ex99-2.htm EXHIBIT 99.2
Exhibit 99.2


FOR IMMEDIATE RELEASE

SANUWAVE HEALTH REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS & WILL HOST LIVE CONFERENCE CALL WITH BUSINESS UPDATE
 
Eden Prairie, MN, 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

o
100% increase from the 25 systems placed Q2 2021

-
Over 40,000 wound treatments administered

o
Up from 31,000 treatments administered Q2 2021

-
Successfully completed MDSAP audit

-
Transitioned company 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® continues 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, 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.
 
Exhibit 99.2

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 from an increase in sales of the UltraMIST system. The company moved manufacturing from Georgia to Minnesota which impacted 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.
 
Exhibit 99.2

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
Investorrelations@Sanuwave.com
 
(FINANCIAL TABLES FOLLOW)
 
Exhibit 99.2

SANUWAVE HEALTH, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
(In thousands except share data)

   
Three Months Ended June 30,
    
Six Months Ended June 30,
  
   
2022
    
2021
    
2022
    
2021
  
Revenues:
                        
Accessory and parts revenue
  
$
2,663
    
$
2,008
    
$
4,854
    
$
3,579
  
Product
    
862
      
514
      
1,507
      
767
  
Rental Income
    
344
      
276
      
688
      
530
  
License fees and other
    
13
      
111
      
28
      
149
  
Total Revenue
    
3,882
      
2,909
      
7,077
      
5,025
  
                                 
Cost of Revenues
    
1,096
      
1,048
      
1,986
      
2,103
  
                                 
Gross Margin
    
2,786
      
1,861
      
5,091
      
2,922
  
                                 
Operating Expenses:
                                
General and administrative
    
2,937
      
2,923
      
5,078
      
6,045
  
Selling and marketing
    
1,672
      
2,520
      
3,387
      
4,300
  
Research and development
    
171
      
272
      
337
      
626
  
Gain on disposal of assets
    
(136
)
    
-
      
(690
)
    
-
  
Depreciation and amortization
    
210
      
192
      
386
      
391
  
Total Operating Expenses
    
4,854
      
5,907
      
8,498
      
11,362
  
                                 
Operating Loss
    
(2,068
)
    
(4,046
)
    
(3,407
)
    
(8,440
)
                                 
Other Income (Expense):
                                
Interest expense
    
(2,826
)
    
(1,437
)
    
(5,903
)
    
(2,559
)
Interest expense, related party
    
(56
)
    
(48
)
    
(112
)
    
(95
)
Change in fair value of derivative liabilities
    
7,861
      
(591
)
    
11,343
      
44
  
Loss on issuance of debt
    
-
      
(2,484
)
    
(3,434
)
    
(2,484
)
Loss on extinguishment of debt
    
(211
)
    
-
      
(211
)
    
-
  
Gain / (loss) on foreign currency exchange
    
2
      
(3
)
    
2
      
4
  
Other Income (Expense), net
    
4,770
      
(4,563
)
    
1,685
      
(5,090
)
                                 
Net Loss before Income Taxes
    
2,702
      
(8,609
)
    
(1,722
)
    
(13,530
)
                                 
Provision for Income Taxes
    
-
      
6
      
-
      
22
  
                                 
Net Income (loss)
    
2,702
      
(8,615
)
    
(1,722
)
    
(13,552
)
                                 
Other Comprehensive Income (Loss)
                                
Foreign currency translation adjustments
    
-
      
(3
)
    
-
      
(11
)
                                 
Total Comprehensive Income (Loss)
  
$
2,702
    
$
(8,618
)
  
$
(1,722
)
  
$
(13,563
)
                                 
Gain (loss) per Share:
                                
Basic
  
$
0.01
    
$
(0.02
)
  
$
(0.00
)
  
$
(0.03
)
Diluted
  
$
0.00
    
$
(0.02
)
  
$
(0.00
)
  
$
(0.03
)
                                 
Weighted average shares outstanding, basic and diluted
                                
Basic
    
538,560,051
      
518,310,781
      
532,589,825
      
518,400,008
  
Diluted
    
871,984,091
      
518,310,781
      
532,589,825
      
518,400,008
  

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

Exhibit 99.2
 
PART I -- FINANCIAL INFORMATION

ITEM 1.
FINANCIAL STATEMENTS

SANUWAVE HEALTH, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In thousands except share data)


  
June 30, 2022
    
December 31, 2021
  
ASSETS
            
Current Assets:
            
Cash
  
$
1,484
    
$
619
  
Accounts receivable, net of allowance for doubtful accounts of $0.8 million, respectively
    
1,749
      
2,415
  
Inventory
    
925
      
1,040
  
Prepaid expenses and other current assets
    
1,181
      
326
  
Total Current Assets
    
5,339
      
4,400
  
Property, Equipment and Other, net
    
535
      
1,118
  
Other Intangible Assets, net
    
5,489
      
5,841
  
Goodwill
    
7,260
      
7,260
  
Total Assets
  
$
18,623
    
$
18,619
  

               
LIABILITIES
                
Current Liabilities:
                
Senior secured promissory note payable, in default
  
$
12,334
    
$
11,586
  
Convertible promissory notes payable, in default
    
6,523
      
11,601
  
Convertible promissory notes, related parties, in default
    
1,596
      
1,596
  
Short-term loans
    
1,484
      
-
  
Advances on future cash receipts
    
398
      
446
  
Accounts payable
    
7,083
      
7,644
  
Accrued expenses
    
5,900
      
4,394
  
Accrued employee compensation
    
4,264
      
4,247
  
Due under factoring ageement
    
1,792
      
1,737
  
Warrant liability
    
5,295
      
9,614
  
Current portion of SBA loans
    
272
      
158
  
Accrued interest
    
3,600
      
2,521
  
Accrued interest, related parties
    
402
      
289
  
Current portion of lease liabilities
    
185
      
268
  
Current portion of contract liabilities
    
64
      
48
  
Other
    
107
      
114
  
Total Current Liabilities
    
51,299
      
56,263
  
Non-current Liabilities
                
SBA loans
    
761
      
875
  
Lease liabilities
    
40
      
118
  
Contract liabilities
    
295
      
293
  
Deferred tax liability
    
28
      
28
  
Total Non-currrent Liabilities
    
1,124
      
1,314
  
Total Liabilities
    
52,423
      
57,577
  

               
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 March 31, 2022 and December 31, 2021
    
-
      
-
  
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, respectively
    
529
      
482
  
Additional Paid-in Capital
    
151,409
      
144,582
  
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
  

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

 Exhibit 99.2

SANUWAVE HEALTH, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)


  
Six Months Ended June 30,
  

 
2022
    
2021
  
Cash Flows - Operating Acivities:
            
Net income (loss)
  
$
(1,722
)
  
$
(13,552
)
Adjustments to reconcile net loss to net cash used by operating activities
                
Amortization of intangibles
    
352
      
352
  
Depreciation
    
94
      
198
  
Bad debt expense
    
52
      
240
  
Income tax expense
    
-
      
22
  
Shares issued for service
    
888
      
-
  
Loss in extinguishment of debt
    
211
      
-
  
Gain on sale of property and equipment, net
    
(541
)
    
-
  
Change in fair value of derivative liabilities
    
(11,343
)
    
(44
)
Loss on issuance of debt
    
3,434
      
2,484
  
Amortization of debt issuance costs and original issue discount
    
1,304
      
719
  
Accrued interest
    
1,078
      
390
  
Interest payable, related parties
    
112
      
95
  
Changes in operating assets and liabilities
                
Accounts receivable - trade
    
733
      
218
  
Inventory
    
115
      
521
  
Prepaid expenses
    
(855
)
    
(191
)
Other assets
    
47
      
(83
)
Accounts payable
    
(563
)
    
1,475
  
Accrued expenses
    
1,408
      
1,350
  
Accrued employee compensation
    
103
      
553
  
Contract liabilties
    
(108
)
    
4
  
Net Cash Used by Operating Activities
    
(5,201
)
    
(5,249
)

               
Cash Flows - Investing Activities
                
Proceeds from sale of property and equipment
    
948
      
-
  
Purchase of property and equipment
    
-
      
(277
)
Net Cash Flows Used in Investing Activities
    
948
      
(277
)

               
Cash Flows - Financing Activities
                
Proceeds from senior promissory notes
    
2,940
      
1,263
  
Proceeds from short term notes
    
2,130
      
1,033
  
Proceeds from factoring
    
55
      
1,038
  
Proceeds from warrant exercises
    
100
      
-
  
Payments of principal on finance leases
    
(121
)
    
(94
)
Proceeds from related party advances
    
-
      
125
  
Net Cash Flows Provided by Financing Activities
    
5,104
      
3,365
  

               
Effect of Exchange Rates on Cash
    
14
      
(12
)

               
Net Change in Cash During Period
    
865
      
(2,173
)

               
Cash at Beginning of Period
    
619
      
2,437
  
Cash at End of Period
  
$
1,484
    
$
264
  

               
Supplemental Information:
                
Cash paid for interest
  
$
2,045
    
$
1,434
  

               
Non-cash Investing and Financing Activities:
                
Reclassification of warrant liability due to cashless warrant exercise
  
$
2,167
    
$
2,030
  
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
    
-
      
2,740
  
Warrant issuance in conjunction with convertible debt
    
-
      
758
  

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