Company: SNWV
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-038937
Chunk: 48

Company: SANUWAVE Health, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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 and the Reverse Stock Split if the Company had at least $5.0 million of liquidity following such transactions, which is required pursuant to the minimum liquidity covenant in the NWPSA. The Agent and the Holders have also agreed that any existing event of default that exists due to the Company’s failure to meet the minimum liquidity covenant will be waived if the conditions set forth in the Consent and Limited Waiver, including at least $5.0 million of liquidity following such transactions, are met. As a condition to the effectiveness of the Consent and Limited Waiver, the Agent exercised, on a cashless basis, all warrants issued by the Company to the Agent in exchange for the issuance of 146,302 shares of the Company’s common stock following the Reverse Stock Split.As of June 30, 2025, the Company is in compliance with all covenants in the Senior Secured Note.

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The debt issuance costs, and debt discount related to the Senior Secured Note were capitalized as a reduction in the principal amount and are being amortized to interest expense over the life of the Senior Secured Note.Three Months EndedSix Months Ended(In millions)June 30, 2025June 30, 2024June 30, 2025June 30, 2024Amortization of debt issuance costs and debt discount, included in interest expense$0.6 $2.1 $1.1 $4.0 Interest expense$1.9 $1.4 $3.7 $3.1 

9.        Accrued Expenses

Accrued expenses consisted of the following:(in thousands)June 30, 2025December 31, 2024Registration penalties$1,583 $1,583 Board of directors fees172 249 Employee compensation906 2,232 Other628 614 Accrued expenses$3,289 $4,678 

10.        Fair Value Measurements

The Company uses various inputs to measure the outstanding warrants on a recurring basis to determine the fair value of the liabilities. The following tables classify the Company’s liabilities measured at fair value on a recurring basis into the fair value hierarchy:Fair value measured at June 30, 2025(in thousands)Fair value atJune 30, 2025Quoted prices inactive markets(Level 1)Significant otherobservable inputs(Level 2)Significantunobservable inputs(Level 3)Warrant liability