SUWANEE, GA--(Marketwired - May 16, 2017) - SANUWAVE Health, Inc. (OTCQB: SNWV), today reported financial results for the three months ended March 31, 2017 and provided a business update. The Company will host a conference call at 9AM Eastern Time on Tuesday, May 16, 2017.
Highlights of the first quarter and recent weeks:
- The Company hired André Mouton to head the Company's international sales and relations. André's focus is on adding additional countries and regions to our portfolio and centralize the management of SANUWAVE's existing distributor and customer base.
- SANUWAVE launched a blog entitled "SHOCK THIS" to bring together in one setting various information about the Company, the products and the science behind the technology in a useful and entertaining way. Two blogs have been published to date, with a third coming shortly. Please visit our website at www.sanuwave.com to view the blogs.
- SANUWAVE has appointed LOK North America to act as Territory Sales Manager for sourcing and screening of potential distributors for the Company's products in Canada. LOK North America will give SANUWAVE an extended reach and establish rigorous evaluation methods of the regional distribution options in Canada to ensure the development of a strong distribution network.
- SANUWAVE exhibited, in conjunction with Ortho-Medico, a member of B&Co, at EWMA in Amsterdam, The Netherlands on May 3 -5, 2017.
"The first quarter came in as we had expected and announced on our most recent conference call. The weakness was due to economic concerns in South Korea. The good news is since the recent election in South Korea and a successful Korea Diabetic Conference, held in BEXCO from May 11th to 13th orders have returned and the outlook in South Korea for 2017 remains very robust. We also remain on track to add 3 new countries in the second quarter and 7-10 during the full year, as we had indicated on our year end conference call. Lastly, we have submitted our response to the FDA's questions and are hopeful of a positive response by year end," stated Kevin Richardson, CEO and Chairman.
First Quarter Financial Results
Revenues for the three months ended March 31, 2017 were $149,569, compared to $269,324 for the same period in 2016, a decrease of $119,755, or 44%. Revenues resulted primarily from sales in Europe, Asia and Asia/Pacific of our orthoPACE device and related applicators. The decrease in revenues for 2017 was due to lower sales of new orthoPACE devices and applicators, lower applicator refurbishments and lower wound kit sales in Europe and Asia/Pacific in 2017.
Research and development expenses for the three months ended March 31, 2017 were $260,338, compared to $309,955 for the same period in 2016, a decrease of $49,617, or 16%. Research and development expenses decreased in 2017 due to lower payments to consultants related to the de novo petition submission to the FDA in July 2016.
General and administrative expenses for the three months ended March 31, 2017 were $448,606, as compared to $499,132 for the same period in 2016, a decrease of $50,526, or 10%. The decrease in general and administrative expenses is primarily due to reduced salary and related costs due to reduction in headcount in June 2016, lower rent expense due to move to new facility and lower travel expenses.
Net loss for the three months ended March 31, 2017 was $493,532, or ($0.00) per basic and diluted share, compared to a net loss of $1,724,576, or ($0.02) per basic and diluted share, for the same period in 2016, a decrease in the net loss of $1,231,044, or 71%. The decrease in the net loss for 2017 was primarily due to a gain on warrant valuations and lower operating expenses as noted above.
Conference Call
The Company will also host a conference call on Tuesday, May 16, 2017, beginning at 9AM Eastern Time to discuss the first quarter financial results, provide a business update and answer questions. Shareholders and other interested parties can participate in the conference call by dialing 866-682-6100 (U.S.) or 862-255-5401 (international) or via webcast at http://www.investorcalendar.com/IC/CEPage.asp?ID=175965.
A replay of the conference call will be available beginning two hours after its completion through May 30, 2017, by dialing 877-481-4010 (U.S.) or 919-882-2331 (international) and entering Conference ID 10400.
About SANUWAVE Health, Inc.
SANUWAVE Health, Inc. (OTCQB: SNWV) (www.sanuwave.com) is a shock wave technology company initially focused on the development and commercialization of patented noninvasive, biological response activating devices for the repair and regeneration of skin, musculoskeletal tissue and vascular structures. SANUWAVE's portfolio of regenerative medicine products and product candidates activate biologic signaling and angiogenic responses, producing new vascularization and microcirculatory improvement, which helps restore the body's normal healing processes and regeneration. SANUWAVE applies its patented PACE technology in wound healing, orthopedic/spine, plastic/cosmetic and cardiac conditions. Its lead product candidate for the global wound care market, dermaPACE®, is CE Marked throughout Europe and has device license approval for the treatment of the skin and subcutaneous soft tissue in Canada, Australia and New Zealand. In the U.S., dermaPACE is currently under the FDA's de novo petition review process for the treatment of diabetic foot ulcers. SANUWAVE researches, designs, manufactures, markets and services its products worldwide, and believes it has demonstrated that its technology is safe and effective in stimulating healing in chronic conditions of the foot (plantar fasciitis) and the elbow (lateral epicondylitis) through its U.S. Class III PMA approved OssaTron® device, as well as stimulating bone and chronic tendonitis regeneration in the musculoskeletal environment through the utilization of its OssaTron, Evotron® and orthoPACE® devices in Europe, Asia and Asia/Pacific. In addition, there are license/partnership opportunities for SANUWAVE's shock wave technology for non-medical uses, including energy, water, food and industrial markets.
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.
For additional information about the Company, visit www.sanuwave.com.
SANUWAVE HEALTH, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 31, December 31,
2017 2016
-------------- --------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 97,538 $ 133,571
Accounts receivable, net of allowance for
doubtful accounts 451,369 460,799
Inventory 202,879 231,953
Prepaid expenses 115,377 87,823
-------------- --------------
TOTAL CURRENT ASSETS 867,163 914,146
PROPERTY AND EQUIPMENT, at cost, less
accumulated depreciation 70,818 76,938
OTHER ASSETS 13,841 13,786
-------------- --------------
TOTAL ASSETS $ 951,822 $ 1,004,870
============== ==============
LIABILITIES
CURRENT LIABILITIES
Accounts payable $ 1,033,341 $ 712,964
Accrued expenses 546,829 375,088
Accrued employee compensation 64,860 64,860
Interest payable, related parties 246,264 109,426
Short term loan, net 100,000 47,440
Warrant liability 861,525 1,242,120
Notes payable, related parties, net 5,367,912 5,364,572
-------------- --------------
TOTAL LIABILITIES 8,220,731 7,916,470
-------------- --------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' DEFICIT
PREFERRED STOCK, SERIES A CONVERTIBLE, par
value $0.001,
6,175 authorized; 6,175 shares issued and 0
shares outstanding
in 2017 and 2016 - -
PREFERRED STOCK, SERIES B CONVERTIBLE, par
value $0.001,
293 authorized; 293 shares issued and 0
shares outstanding
in 2017 and 2016, respectively - -
PREFERRED STOCK - UNDESIGNATED, par value
$0.001, 4,993,532
shares authorized; no shares issued and
outstanding - -
COMMON STOCK, par value $0.001, 350,000,000
shares authorized;
138,815,329 and 137,219,968 issued and
outstanding in 2017 and
2016, respectively 138,815 137,220
ADDITIONAL PAID-IN CAPITAL 92,569,540 92,436,697
ACCUMULATED DEFICIT (99,926,980) (99,433,448)
ACCUMULATED OTHER COMPREHENSIVE LOSS (50,284) (52,069)
-------------- --------------
TOTAL STOCKHOLDERS' DEFICIT (7,268,909) (6,911,600)
-------------- --------------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 951,822 $ 1,004,870
============== ==============
SANUWAVE HEALTH, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(UNAUDITED)
Three Months Three Months
Ended Ended
March 31, March 31,
2017 2016
-------------- --------------
REVENUES $ 149,569 $ 269,324
COST OF REVENUES (exclusive of depreciation
and amortization shown below) 55,144 73,181
OPERATING EXPENSES
Research and development 260,338 309,955
General and administrative 448,606 499,132
Depreciation 6,120 836
Amortization - 76,689
Gain of sale of assets, property and
equipment - (1,000)
-------------- --------------
TOTAL OPERATING EXPENSES 715,064 885,612
-------------- --------------
OPERATING LOSS (620,639) (689,469)
-------------- --------------
OTHER INCOME (EXPENSE)
Gain (loss) on warrant valuation adjustment
and conversion 323,223 (797,697)
Interest expense, net (192,738) (234,430)
Loss on foreign currency exchange (3,378) (2,980)
-------------- --------------
TOTAL OTHER INCOME (EXPENSE), NET 127,107 (1,035,107)
-------------- --------------
NET LOSS (493,532) (1,724,576)
OTHER COMPREHENSIVE LOSS
Foreign currency translation adjustments 1,785 2,972
-------------- --------------
TOTAL COMPREHENSIVE LOSS $ (491,747) $ (1,721,604)
============== ==============
LOSS PER SHARE:
Net loss - basic and diluted $ 0.00 $ (0.02)
============== ==============
Weighted average shares outstanding - basic
and diluted 138,042,070 75,220,485
============== ==============
SANUWAVE HEALTH, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Three Months
Ended Ended
March 31, March 31,
2017 2016
-------------- --------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (493,532) $ (1,724,576)
Adjustments to reconcile net loss to net
cash used by operating activities to net
cash used by operating activities
Depreciation 6,120 836
Change in allowance for doubtful accounts 5,152 1,052
Amortization - 76,689
Stock-based compensation - employees,
directors and advisors - 4,500
(Gain) loss on warrant valuation
adjustment (323,223) 873,118
Amortization of debt discount 55,900 5,694
Amortization of debt issuance costs - 74,549
Gain on sale of asset, property and
equipment - (1,000)
Changes in assets - (increase)/decrease
Accounts receivable - trade 4,278 27,370
Inventory 29,074 26,413
Prepaid expenses (27,554) (23,530)
Other (55) (94)
Changes in liabilities -
increase/(decrease)
Accounts payable 320,377 (153,022)
Accrued expenses 171,741 (107,371)
Accrued employee compensation - 44,613
Interest payable, related parties 136,838 (56,835)
Promissory notes, accrued interest - (79,948)
-------------- --------------
NET CASH USED BY OPERATING ACTIVITIES (114,884) (1,011,542)
-------------- --------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property and
equipment - 1,000
-------------- --------------
NET CASH PROVIDED BY INVESTING ACTIVITIES - 1,000
-------------- --------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from warrant exercise 77,066 -
Proceeds from 2016 Public Offering, net - 1,352,775
Proceeds from convertible promissory notes,
net - 106,000
-------------- --------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 77,066 1,458,775
EFFECT OF EXCHANGE RATES ON CASH 1,785 2,972
-------------- --------------
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS (36,033) 451,205
CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD 133,571 152,930
-------------- --------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 97,538 $ 604,135
============== ==============
SUPPLEMENTAL INFORMATION
Cash paid for interest, related parties $ - $ 209,549
============== ==============
Contact:
Millennium Park Capital LLC
Christopher Wynne
312-724-7845
cwynne@mparkcm.com
SANUWAVE Health, Inc.
Kevin Richardson II
Chairman of the Board
978-922-2447
investorrelations@sanuwave.com
