Company: SNWV
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-038937
Chunk: 77

Company: SANUWAVE Health, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 77
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 - In accordance with ASC 842, "Leases," the Company recognized a right-of-use asset and a corresponding lease liability on the condensed consolidated balance sheets as of March 28, 2025. The initial 

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measurement of the right-of-use asset and lease liability was $0.4 million, which represents the present value of the lease payments over the lease term, discounted at the Company's incremental borrowing rate of 11.5%.Lease-incentive - As part of a new office lease agreement, the Company is entitled to receive reimbursement payments from the lessor as a lease incentive. These payments, totaling $586 thousand, are intended to offset certain costs associated with leasehold improvements.Under ASC 842, lease incentives are accounted for as a reduction of the right-of-use asset and recognized over the lease term. As of June 30, 2025, the Company recorded a short-term lease liability debit balance of $54 thousand for the new office lease, reflecting future reimbursements from the lessor. This balance is classified net with long-term lease liabilities on the condensed consolidated balance sheet and will be amortized as a reduction to lease expense over the remaining lease term.Lease expense - For the three and six months ended June 30, 2025, the Company recognized lease expense of $37 thousand and $49 thousand, respectively, related to this operating lease, which is included in general and administrative expenses in the condensed consolidated statements of comprehensive income (loss).As of June 30, 2025, the maturities of the Company’s operating leases, which have initial or remaining lease terms more than one year, consist of the following:(in thousands)Operating Leases2025$(13)2026345 2027328 2028282 2029292 Thereafter199 Total Lease Payments1,433 Imputed interest(377)Present value of lease liabilities$1,056 The weighted-average useful life of operating leases at June 30, 2025, is 4.65 years.The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

8.        Senior Secured Debt

The following table summarizes outstanding senior secured debt:June 30, 2025December 31, 2024(in thousands)PrincipalDebt Discount Carrying ValuePrincipalDebt Discount Carrying ValueSenior secured debt$27,305 $(531)$26,774 $26,898 $(1,