Company: SNWV
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023881
Chunk: 31

Company: SANUWAVE Health, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 for credit losses is as follows: (in thousands)Three Months Ended March 31, 2025Allowance for credit losses, December 31, 2024$1,147 Provision for credit losses33Write-offs- Allowance for credit losses, March 31, 2025$1,180 

6.      Inventory

Inventory consisted of the following:(in thousands)March 31, 2025December 31, 2024Finished goods$382 $386 Parts and accessories5,075 3,763 Total Inventory$5,457 $4,149 

7.        Leases

Operating lease commitments - On March 27, 2025, the Company entered into a new operating lease agreement for its new headquarters in Eden Prairie, Minnesota. The lease term commenced on March 28, 2025, and extends for a period of 5.5 years, expiring on August 30, 2030. The lease includes an option to renew for an additional 5 years at the Company's discretion.Lease payments - Under the terms of the lease, the Company is obligated to make monthly lease payments starting September 1, 2025, with an annual escalation of 3.5% starting on September 1, 2026. The total minimum lease payments over the initial lease term amount to approximately $1.4 million.Right-of-use asset and lease liability - 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 March 31, 2025, the Company recorded a short-term lease liability debit balance of $0.5 million for the new office lease, reflecting future reimbursements from the lessor. This balance is