Company: SNWV
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023881
Chunk: 74

Company: SANUWAVE Health, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 74
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 not reflect all changes in our working capital needs.

•Do not reflect interest expense, or the amount necessary to service our outstanding debt.

21

As presented in the U.S. GAAP to Non-GAAP Reconciliations section below, our non-GAAP financial measure excludes the impact of certain charges that contribute to our net loss.

Three Months Ended March 31,(in thousands)20252024Net (Loss) Income$(5,676)$(4,528)Non-GAAP Adjustments:Interest expense1,852 3,560 Depreciation and amortization274 218 EBITDA(3,550)(750)Non-GAAP Adjustments for Adjusted EBITDA:Change in fair value of derivative liabilities4,901 2,501 Other non-cash or infrequent charges:Stock-based compensation975 - Loss on extinguishment of debt- 105 Severance agreement and legal settlement- 585 License and option agreement- (2,500)Adjusted EBITDA$2,326 $(59)

Results of Operations

Three Months Ended March 31,Change(in thousands)20252024$%Revenue$9,342 $5,786 $3,556 61 %Cost of revenue1,958 1,584 374 24 %Gross margin7,384 4,202 3,182 76 %Gross margin %79 %73 %Operating expenses:General and administrative4,467 3,675 792 22 %Selling and marketing1,531 1,232 299 24 %Research and development208 163 45 28 %Depreciation and amortization192 182 10 5 %Operating income (loss)986 (1,050)2,036 194 %Other expense, net(6,662)(3,478)(3,184)-92 %Net loss$(5,676)$(4,528)$(1,148)-25 %

Revenue

Revenues for the three months ended March 31, 2025, were $9.3 million, compared to $5.8 million for the same period of 2024, an increase of $3.6 million or 61%. The increase in net sales was primarily driven by the growth in quantity of UltraMIST® disposables and systems sold as well as a strategic focus on price discipline. The quantity of Ultra