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SANUWAVE Announces Q1 FY2024 Financial Results

Q1 2024 revenues were $5.8 million, up 53% from Q1 2023

Q1 2024 gross margin was 73%, up 600bp from Q1 2023

Operating loss was $1.1 million for Q1 2024 compared to $2.0 million for Q1 2023

Company provides guidance for revenue growth of 45-55% for Q2 2024 versus Q2 2023 and reiterates revenue growth guidance of 50% for FY 2024 compared to FY 2023

EDEN PRAIRIE, MN - (NewMediaWire) - May 10, 2024 - SANUWAVE Health, Inc. (the "Company" or "SANUWAVE”) (OTCQB: SNWV), a leading provider of next-generation FDA-approved wound care products, is pleased to provide its financial results for the three months ended March 31, 2024.

Q1 2024 ended March 31, 2024

      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.

“The first quarter showed an acceleration in year over year revenue growth rate for Sanuwave as we start to see the results of all the hard work put in on manufacturing, operations, and increasingly sales,” said Morgan Frank, CEO.  “This was the best first quarter in Company history by a wide margin, and Adjusted EBITDA remained near break-even level despite some meaningful non-recurring costs in the quarter.  Like much of the life science and medical device space, the first quarter is a seasonally slower time for Sanuwave, but this did not stop us from accelerating our growth rate and setting the groundwork to build and sustain this higher growth.  We hired four new salespeople in the quarter and are looking to hire more going forward.  We aim for 2024 to be the breakout year for Sanuwave.”

Financial Outlook


The Company forecasts Q2 2024 revenue to rise 45-55% vs Q2 2023 and for gross margin as a percentage of revenue to remain in the mid 70s.

Our merger with SEPA remains ongoing and active.  We’re continuing to work toward finalizing the exchange listing and the Company believes it sees a path to closing this transaction in May.

As previously announced, a business update will occur via conference call on May 10, 2024 at 8:30 a.m. EST. Materials for the conference call are included on the Company website at

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

Participant Listening: 1-800-245-3047 or 1-203-518-9765

OR click the link for instant telephone access to the event.

A replay will be made available through June 3, 2024:

Toll-Free: 1-844-512-2921 or 1-412-317-6671

Replay Access ID: 1155590


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 helps 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.


Non-GAAP Financial Measures

This press release includes certain financial measures that are not presented in our financial statements prepared in accordance with accounting principles generally accepted in the United States (U.S.) (“U.S. GAAP”). These financial measures are considered "non-GAAP financial measures" and are intended to supplement, and should not be considered as superior to, or a replacement for, financial measures presented in accordance with U.S. GAAP.

The Company uses Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) and Adjusted EBITDA to assess its operating performance. Adjusted EBITDA is Earnings before Interest, Taxes, Depreciation and Amortization adjusted for the change in fair value of derivatives and any significant non-cash or infrequent charges.  EBITDA and Adjusted EBITDA should not be considered as alternatives to net loss as a measure of financial performance or any other performance measure derived in accordance with GAAP, and they should not be construed as an inference that the Company’s future results will be unaffected by unusual or infrequent items. These non-GAAP financial measures are presented in a consistent manner for each period, unless otherwise disclosed. The Company uses these measures for the purpose of evaluating its historical and prospective financial performance, as well as its performance relative to competitors. These measures also help the Company to make operational and strategic decisions. The Company believes that providing this information to investors, in addition to GAAP measures, allows them to see the Company’s results through the eyes of management, and to better understand its historical and future financial performance. These non-GAAP financial measures are also frequently used by analysts, investors, and other interested parties to evaluate companies in our industry, when considered alongside other GAAP measures.

EBITDA and Adjusted EBITDA have their limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Some of these limitations are that EBITDA and Adjusted EBITDA:

      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.

As presented in the GAAP to Non-GAAP Reconciliations section below, the Company’s non-GAAP financial measures exclude the impact of certain charges that contribute to our net loss.

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 future financial results, production expectations and constraints, plans for future business development activities and the planned merger with SEP Acquisition Corp. 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 supply chain and production constraints, regulatory oversight, the Company’s ability to manage its capital resource issues, competition, the Company’s ability to consummate the proposed business combination with SEP Acquisition Corp. 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.




[1] This is a non-GAAP financial measure. Refer to “Non-GAAP Financial Measures” and the reconciliations in this release for further information.



(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
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
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
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