Company: SNWV
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023881
Chunk: 43

Company: SANUWAVE Health, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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, and all rights revert back to the Company.Contingent Consideration - The Company considers such royalties, license fees, settlement payments, or other proceeds as variable or contingent consideration. The Company determined that the amount of variable consideration would be constrained until the period the uncertainty related to the consideration is relieved.

17.        Commitments and Contingencies

LitigationIn the ordinary course of business, the Company from time to time becomes involved in various legal proceedings involving a variety of matters. The Company does not believe there are any pending legal proceedings that will have a material adverse effect on the Company’s business, consolidated financial position, results of operations, or cash flows. However, the outcome of such legal matters is inherently unpredictable and subject to significant uncertainties. The Company expenses legal fees in the period in which they are incurred.

18.        Segment Information

The Company operates in one reportable segment engaged in the design and sale of medical devices.The accounting policies of the one reportable segment are the same as those described in the summary of significant accounting policies. The Chief Operating Decision Maker (“CODM”) assesses performance for the reportable segment and decides how to allocate resources primarily based on gross profit that is also reported on the consolidated statements of comprehensive loss. The measure of segment assets is reported on the condensed consolidated balance sheets as total consolidated assets.The CODM uses gross profit to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits or to apply them to other parts of the entity.Net (loss) income is used to monitor budget versus actual results. The CODM also uses net (loss) income in competitive analysis by benchmarking to competitors. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the segment and in establishing management’s compensation.Management has determined that Morgan Frank, CEO, is the CODM.

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The following table sets forth our condensed consolidated statements of comprehensive loss used by the CODM:Three Months Ended March 31,(in thousands)20252024Revenue$9,342 $5,786 Cost of Revenues1,958 1,584 Gross Margin7,384 4,202 Operating Expenses:General and administrative4,467 3,675 Selling and marketing1,531 1,232 Research and development208 163 Depreciation and amortization192 182 Total Operating Expenses6,398 5,252 Total Other Expense(6,662)(3,478)Net