Company: SNWV
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050280
Chunk: 59

Company: SANUWAVE Health, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 59
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 until the period the uncertainty related to the consideration is relieved.

16.        Commitments and Contingencies

LitigationIn the ordinary course of business, the Company from time to time becomes involved in various legal proceedings involving a variety of matters. The Company does not believe there are any pending legal proceedings that will have a material adverse effect on the Company’s business, consolidated financial position, results of operations, or cash flows. However, the outcome of such legal matters is inherently unpredictable and subject to significant uncertainties. The Company expenses legal fees in the period in which they are incurred.

17.        Segment Information

The Company operates in one reportable segment engaged in the design and sale of medical devices.The accounting policies of the reportable segment are the same as those described in the summary of significant accounting policies. The Chief Operating Decision Maker (“CODM”) assesses performance for the reportable segment and decides how to allocate resources primarily based on gross margin that is also reported on the condensed consolidated statements of comprehensive income (loss). The measure of segment assets is reported on the condensed consolidated balance sheets as total assets.The CODM uses gross profit to evaluate income (loss) generated from segment assets (return on assets) in deciding whether to reinvest profits or to apply them to other parts of the entity.

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Net income (loss) is used to monitor budget versus actual results. The CODM also uses net income (loss) in competitive analysis by benchmarking to competitors. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the segment and in establishing management’s compensation.Management has determined that Morgan Frank, CEO, is the CODM.The following table sets forth our condensed consolidated statements of comprehensive income (loss) used by the CODM:Three Months Ended September 30,Nine Months Ended September 30,(in thousands)2025202420252024Revenue$11,451 $9,360 $30,957 $22,308 Cost of Revenues2,526 2,293 6,690 5,799 Gross Margin8,925 7,067 24,267 16,509 Operating Expenses:General and administrative4,810 2,545 13,316 8,059 Selling and marketing2,081 2,202 5,286 4,468 Research and development345 161 747 519 Depreciation and amortization222 206 588 568 Operating Income1,467