Company: SNWV
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023881
Chunk: 76

Company: SANUWAVE Health, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 76
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 and development expenses for each of the three months ended March 31, 2025, and March 31, 2024, were $0.2 million. The research and development costs in the three months ended March 31, 2025, remained approximately consistent with the costs in the same period of 2024.

Other Income (Expense), net

Other expense, net consists of the following:

Three Months Ended March 31,Change20252024$%Interest expense$(1,852)$(3,560)$1,708 48 %Change in fair value of derivative liabilities(4,901)(2,501)(2,400)(96 %)Loss on extinguishment of debt- (105)105 nmOther expense(1)(102)101 99 %Other income92 2,790 (2,698)(97 %)Other expense, net$(6,662)$(3,478)$(3,184)(92 %)nm - not meaningful

Other expenses totaled $6.7 million for the three months ended March 31, 2025, as compared to $3.5 million for the same period of 2024, an increase of $3.2 million. The increase was primarily driven by a decrease in other income of $2.7 million and an increased loss from the change in the fair value of derivative liabilities of $2.4 million, partially offset by a decrease in interest expense of $1.7 million.  The change in fair value of derivative liability relates to valuation of warrants previously issued by the Company. Other income for the three months ended March 31, 2024 mainly consists of the one-time payment of $2.5 million related to the Patent License as described in Note 16.

Liquidity and Capital Resources

Since inception, we have incurred losses from operations each year. As of March 31, 2025, we had an accumulated deficit of $257.1 million. Historically, our operations have primarily been funded from the sale of capital stock, issuances of notes payable, and convertible debt securities.

23

The Company has incurred recurring operating losses in prior years, has negative working capital, and the Senior Secured Note becomes due in September 2025, which raises substantial doubt about our ability to continue as a going concern for a period of 12 months from the filing of the Form 10-Q.

During the current and prior fiscal year, the Company has achieved operating income,