08/13/2024 | Press release | Distributed by Public on 08/13/2024 04:06
|
■ |
Revenue for the three months ended June 30, 2024, totaled $7.2 million, an increase of 53%, as compared to $4.7 million for the same period of 2023. This growth is within the previous guidance for a 45 - 55% increase.
|
|
■ |
72 UltraMist® systems were sold in Q2 2024 up from 49 in Q2 2023 and from 43 in Q1 2024.
|
|
■ |
UltraMist® consumables revenue increased by 67% to $4.7 million (65% of revenues) in Q2 2024, versus $2.8 million for the same quarter last year. UltraMIST systems and consumables remained the primary revenue growth driver and continued to represent in excess of 95% of SANUWAVE's overall revenues in Q2 2024.
|
|
■ |
Gross margin as a percentage of revenue amounted to 73% for the three months ended June 30, 2024, versus 74% for the same period last year, despite some additional costs from standing up new contract manufacturers.
|
|
■ |
For the three months ended June 30, 2024, operating income totaled $2.0 million, an improvement of $1.1 million compared to Q2 2023 as a result of the Company's continued efforts to drive profitable growth and manage expenses.
|
|
■ |
Net income for the second quarter of 2024 was $6.6 million, driven predominantly by the change in the fair value of derivative liabilities and the extinguishment of debt. This compares to a net loss of $7.3 million in the second quarter of 2023. Net income year to date was $2.2 million versus a net loss of $20.4 million in the first half of 2023.
|
|
■ |
Adjusted EBITDA 1 for the three months ended June 30, 2024, was $1.5 million versus an Adjusted EBITDA of $171 thousand for the same period last year, an improvement of $1.3 million. Year to date Adjusted EBITDA was $1.4 million versus a loss of $1.6 million in the first 6 months of the prior year.
|
|
• |
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
|
$
|
7,162
|
$
|
4,675
|
||||
Cost of Revenues
|
1,922
|
1,202
|
||||||
Gross Margin
|
5,240
|
3,473
|
||||||
Gross Margin %
|
73.2
|
%
|
74.3
|
%
|
||||
Total operating expenses
|
3,248
|
2,542
|
||||||
Operating Income
|
$
|
1,992
|
$
|
931
|
||||
Total other expense
|
4,569
|
(8,193
|
)
|
|||||
Net Income (Loss)
|
$
|
6,561
|
$
|
(7,262
|
)
|
(in thousands)
|
2024
|
2023
|
||||||
Net Income (Loss)
|
$
|
6,561
|
$
|
(7,262
|
)
|
|||
Non-GAAP Adjustments:
|
||||||||
Interest expense
|
3,783
|
4,381
|
||||||
Depreciation and amortization
|
262
|
257
|
||||||
EBITDA
|
10,606
|
(2,624
|
)
|
|||||
Non-GAAP Adjustments for Adjusted EBITDA:
|
||||||||
Change in fair value of derivative liabilities
|
(3,717
|
)
|
3,821
|
|||||
Other non-cash or non-recurring charges:
|
||||||||
Gain on extinguishment of debt
|
(5,310
|
)
|
-
|
|||||
Release of historical accrued expenses
|
(579
|
)
|
(1,250
|
)
|
||||
Shares for services
|
-
|
224
|
||||||
License and option agreement
|
-
|
-
|
||||||
Prepaid legal fees expensed from termination of Merger Agreement
|
457
|
-
|
||||||
Adjusted EBITDA
|
$
|
1,457
|
$
|
171
|
(In thousands, except share data)
|
June 30, 2024
|
December 31, 2023
|
||||||
ASSETS
|
||||||||
Current Assets:
|
||||||||
Cash
|
$
|
2,460
|
$
|
1,797
|
||||
Accounts receivable, net of allowance of $1,237 and $1,237, respectively
|
3,154
|
3,314
|
||||||
Inventory
|
2,731
|
2,951
|
||||||
Prepaid expenses and other current assets
|
379
|
1,722
|
||||||
Total Current Assets
|
8,724
|
9,784
|
||||||
Non-Current Assets:
|
||||||||
Property, equipment and right of use assets, net
|
947
|
938
|
||||||
Intangible assets, net
|
4,082
|
4,434
|
||||||
Goodwill
|
7,260
|
7,260
|
||||||
Total Non-Current Assets
|
12,289
|
12,632
|
||||||
Total Assets
|
$
|
21,013
|
$
|
22,416
|
||||
LIABILITIES
|
||||||||
Current Liabilities:
|
||||||||
Senior secured debt, in default
|
$
|
23,424
|
$
|
18,278
|
||||
Convertible promissory notes payable
|
3,953
|
5,404
|
||||||
Convertible promissory notes payable, related parties
|
2,454
|
1,705
|
||||||
Asset-backed secured promissory notes payable
|
-
|
3,117
|
||||||
Asset-backed secured promissory notes payable, related parties
|
-
|
1,458
|
||||||
Promissory note payable, related party
|
500
|
-
|
||||||
Accounts payable
|
3,891
|
5,705
|
||||||
Accrued expenses
|
4,794
|
5,999
|
||||||
Factoring liabilities
|
2,321
|
1,490
|
||||||
Warrant liability
|
16,864
|
14,447
|
||||||
Accrued interest
|
396
|
5,444
|
||||||
Accrued interest, related parties
|
841
|
669
|
||||||
Current portion of contract liabilities
|
130
|
92
|
||||||
Other
|
397
|
947
|
||||||
Total Current Liabilities
|
59,965
|
64,755
|
||||||
Non-Current Liabilities:
|
||||||||
Lease liabilities
|
304
|
492
|
||||||
Contract liabilities
|
350
|
347
|
||||||
Total Non-Current Liabilities
|
654
|
839
|
||||||
Total Liabilities
|
$
|
60,619
|
$
|
65,594
|
||||
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 authorized; no shares issued and outstanding at June 30, 2024 and December 31, 2023
|
$
|
-
|
$
|
-
|
||||
Common stock, par value $0.001, 2,500,000,000 shares authorized; 1,181,272,961 and 1,140,559,527 issued and outstanding at June 30, 2024 and December 31, 2023, respectively
|
1,182
|
1,140
|
||||||
Additional paid-in capital
|
177,218
|
175,842
|
||||||
Accumulated deficit
|
(218,016
|
)
|
(220,049
|
)
|
||||
Accumulated other comprehensive loss
|
10
|
(111
|
)
|
|||||
Total Stockholders' Deficit
|
(39,606
|
)
|
(43,178
|
)
|
||||
Total Liabilities and Stockholders' Deficit
|
$
|
21,013
|
$
|
22,416
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
(In thousands, except share and per share data)
|
2024
|
2023
|
2024
|
2023
|
||||||||||||
Revenue
|
$
|
7,162
|
$
|
4,675
|
$
|
12,948
|
$
|
8,450
|
||||||||
Cost of revenues
|
1,922
|
1,202
|
3,506
|
2,464
|
||||||||||||
Gross Margin
|
5,240
|
3,473
|
9,442
|
5,986
|
||||||||||||
Operating Expenses:
|
||||||||||||||||
General and administrative
|
1,839
|
1,238
|
5,514
|
3,997
|
||||||||||||
Selling and marketing
|
1,034
|
978
|
2,266
|
2,390
|
||||||||||||
Research and development
|
195
|
139
|
358
|
270
|
||||||||||||
Depreciation and amortization
|
180
|
187
|
362
|
376
|
||||||||||||
Total Operating Expenses
|
3,248
|
2,542
|
8,500
|
7,033
|
||||||||||||
Operating Income (Loss)
|
1,992
|
931
|
942
|
(1,047
|
)
|
|||||||||||
Other Income (Expense)
|
||||||||||||||||
Interest expense
|
(3,396
|
)
|
(3,706
|
)
|
(6,633
|
)
|
(7,218
|
)
|
||||||||
Interest expense, related party
|
(387
|
)
|
(675
|
)
|
(710
|
)
|
(1,441
|
)
|
||||||||
Loss on extinguishment of debt
|
5,310
|
-
|
5,205
|
-
|
||||||||||||
Change in fair value of derivative liabilities
|
3,717
|
(3,821
|
)
|
1,216
|
(10,618
|
)
|
||||||||||
Other expense
|
(685
|
)
|
9
|
(787
|
)
|
(18
|
)
|
|||||||||
Other income
|
10
|
-
|
2,800
|
-
|
||||||||||||
Total Other Expense
|
4,569
|
(8,193
|
)
|
1,091
|
(19,295
|
)
|
||||||||||
Net Income (Loss)
|
$
|
6,561
|
$
|
(7,262
|
)
|
$
|
2,033
|
$
|
(20,342
|
)
|
||||||
Other Comprehensive Loss
|
||||||||||||||||
Foreign currency translation adjustments
|
10
|
(9
|
)
|
121
|
(13
|
)
|
||||||||||
Total Comprehensive Income (Loss)
|
$
|
6,571
|
$
|
(7,271
|
)
|
$
|
2,154
|
$
|
(20,355
|
)
|
(In thousands, except share data)
|
||||||||||||||||||||||||
Six Months Ended June 30, 2024
|
||||||||||||||||||||||||
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
|
)
|
||||||||||
Shares issued for settlement of warrants
|
5,414,815
|
6
|
-
|
-
|
-
|
6
|
||||||||||||||||||
Shares issued for settlement of warrants
|
35,298,619
|
36
|
1,376.00
|
-
|
-
|
1,412
|
||||||||||||||||||
Foreign currency translation adjustment
|
-
|
-
|
-
|
-
|
121
|
121
|
||||||||||||||||||
Net Income
|
-
|
-
|
-
|
2,033
|
-
|
2,033
|
||||||||||||||||||
Balances as of June 30, 2024
|
1,181,272,961
|
$
|
1,182
|
$
|
177,218
|
$
|
(218,016
|
)
|
$
|
10
|
$
|
(39,606
|
)
|
Six Months Ended June 30, 2023
|
||||||||||||||||||||||||
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
|
548,737,651
|
$
|
549
|
$
|
152,750
|
$
|
(194,242
|
)
|
$
|
(67
|
)
|
$
|
(41,010
|
)
|
||||||||||
Shares issued for services
|
12,900,000
|
13
|
514
|
-
|
-
|
527
|
||||||||||||||||||
Foreign currency translation adjustment
|
-
|
-
|
-
|
-
|
(13
|
)
|
(13
|
)
|
||||||||||||||||
Net Income
|
-
|
-
|
-
|
(20,342
|
)
|
-
|
(20,342
|
)
|
||||||||||||||||
Balances as of June 30, 2023
|
561,637,651
|
$
|
562
|
$
|
153,264
|
$
|
(214,584
|
)
|
$
|
(80
|
)
|
$
|
(60,838
|
)
|
Three Months Ended June 30, 2024
|
||||||||||||||||||||||||
Common Stock
|
||||||||||||||||||||||||
Shares Issued and
Outstanding
|
Par Value
|
Additional Paid-
in Capital
|
Accumulated
Deficit
|
Accumulated
Other
Comprehensive
Loss
|
Total
|
|||||||||||||||||||
Balances as of March 31, 2024
|
1,140,559,527
|
$
|
1,140
|
$
|
175,842
|
$
|
(224,577
|
)
|
$
|
-
|
$
|
(47,595
|
)
|
|||||||||||
Shares issued for settlement of warrants
|
5,414,815
|
6
|
-
|
-
|
-
|
6
|
||||||||||||||||||
Shares issued for settlement of debt and warrants
|
35,298,619
|
36
|
1,376
|
-
|
-
|
1,412
|
||||||||||||||||||
Foreign currency translation adjustment
|
-
|
-
|
-
|
-
|
10
|
10
|
||||||||||||||||||
Net Income
|
-
|
-
|
-
|
6,561
|
-
|
6,561
|
||||||||||||||||||
Balances as of June 30, 2024
|
$
|
1,181,272,961
|
$
|
1,182.00
|
$
|
177,218
|
$
|
(218,016
|
)
|
$
|
10.00
|
$
|
(39,606
|
)
|
Three Months Ended June 30, 2023
|
||||||||||||||||||||||||
Common Stock
|
||||||||||||||||||||||||
Shares Issued and
Outstanding
|
Par Value
|
Additional Paid-
in Capital
|
Accumulated Deficit
|
Accumulated Other Comprehensive Loss
|
Total
|
|||||||||||||||||||
Balances as of March 31, 2023
|
555,637,651
|
$
|
556
|
$
|
153,046
|
$
|
(207,322
|
)
|
$
|
(71
|
)
|
$
|
(53,791
|
)
|
||||||||||
Shares issued for services
|
6,000,000
|
6
|
218
|
-
|
-
|
224
|
||||||||||||||||||
Foreign currency translation adjustment
|
-
|
-
|
-
|
-
|
(9
|
)
|
(9
|
)
|
||||||||||||||||
Net Income
|
-
|
-
|
-
|
(7,262
|
)
|
-
|
(7,262
|
)
|
||||||||||||||||
Balances as of June 30, 2024
|
561,637,651
|
$
|
562
|
$
|
153,264
|
$
|
(214,584
|
)
|
$
|
(80
|
)
|
$
|
(60,838
|
)
|
Six Months Ended June 30,
|
||||||||
(In thousands)
|
2024
|
2023
|
||||||
Cash Flows - Operating Activities:
|
||||||||
Net income (loss)
|
2,033
|
(20,342
|
)
|
|||||
Adjustments to reconcile net loss to net cash used by operating activities
|
||||||||
Depreciation and amortization
|
480
|
515
|
||||||
Bad debt expense
|
99
|
313
|
||||||
Shares issued for services
|
-
|
224
|
||||||
Gain on extinguishment of debt
|
(5,205
|
)
|
-
|
|||||
Change in fair value of derivative liabilities
|
(1,216
|
)
|
10,618
|
|||||
Amortization of debt issuance and debt discounts
|
3,274
|
3,955
|
||||||
Accrued interest
|
1,859
|
3,606
|
||||||
Changes in operating assets and liabilities
|
||||||||
Accounts receivable
|
(340
|
)
|
898
|
|||||
Inventory
|
220
|
(31
|
)
|
|||||
Prepaid expenses and other assets
|
118
|
(336
|
)
|
|||||
Accounts payable
|
(1,259
|
)
|
718
|
|||||
Accrued expenses
|
328
|
(1,337
|
)
|
|||||
Contract liabilites
|
41
|
(16
|
)
|
|||||
Net Cash Provided by/ (Used in) Operating Activities
|
432
|
(1,215
|
)
|
|||||
Cash Flows - Investing Activities
|
||||||||
Purchase of property and equipment
|
(206
|
)
|
(169
|
)
|
||||
Net Cash Flows Used In Investing Activities
|
(206
|
)
|
(169
|
)
|
||||
Cash Flows - Financing Activities
|
||||||||
Proceeds from convertible promissory notes
|
-
|
1,202
|
||||||
Payment of note payable
|
(2,175
|
)
|
-
|
|||||
Proceeds from convertible notes payable
|
1,300
|
-
|
||||||
Proceeds from promissory note payable, related party
|
500
|
-
|
||||||
Proceeds from bridge notes advance
|
-
|
1,476
|
||||||
Proceeds/(Payments) from factoring, net
|
831
|
(1,167
|
)
|
|||||
Principal payments on finance leases
|
(140
|
)
|
(85
|
)
|
||||
Net Cash Flows Provided by /(Used In) Financing Activities
|
316
|
1,426
|
||||||
Effect of Exchange Rates on Cash
|
121
|
(13
|
)
|
|||||
Net Change in Cash During Period
|
663
|
29
|
||||||
Cash at Beginning of Period
|
1,797
|
1,153
|
||||||
Cash at End of Period
|
2,460
|
1,182
|
||||||
Supplemental Information:
|
||||||||
Cash paid for interest
|
2,055
|
908
|
||||||
Non-Cash Investing and Financing Activities:
|
||||||||
Shares issued for settlement of debt and warrants
|
1,412
|
-
|
||||||
Write off deferred merger costs
|
1,226
|
-
|
||||||
Warrants issued in conjunction with convertible promissory notes
|
3,633
|
570
|
||||||
Capitalize default interest into Senior secured debt
|
3,850
|
-
|
||||||
Conversion of asset-backed secured promissory notes to convertible promissory notes
|
4,584
|
-
|
||||||
Embedded conversion feature on convertible promissory notes payable
|
-
|
157
|
||||||
Common shares issued for advisory shares
|
-
|
302
|