Company: SNWV
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-038937
Chunk: 98

Company: SANUWAVE Health, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 98
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 in gain on extinguishment of debt of $5.3 million and a decrease from the change in the fair value of derivative liabilities of $2.7 million, partially offset by a decrease in interest expense of $1.9 million.  The change in fair value of derivative liability relates to the valuation of warrants previously issued by the Company. 

Other (expense) income, net decreased by $8.6 million to an expense of $7.5 million for the six months ended June 30, 2025, as compared to other income of $1.1 million for the same period of 2024. The decrease was primarily driven by a decrease in gain on extinguishment of debt of $5.2 million and a decrease from the change in the fair value of derivative liabilities of $5.1 million, partially offset by a decrease in interest expense of $3.6 million.  The change in fair value of derivative liability relates to the valuation of warrants previously issued by the Company. Other income for the six months ended June 30, 2024 mainly consists of the one-time payment of $2.5 million related to the Patent and License Agreement as described in Note 16.

Liquidity and Capital Resources

From inception through the year ended December 31, 2023, we incurred losses from operations each year. As of June 30, 2025, we had an accumulated deficit of $256.0 million. Historically, our operations have primarily been funded from the sale of capital stock, issuances of notes payable, and convertible debt securities.

We have incurred recurring net losses in prior years, currently have a significant accumulated deficit, have negative working capital, and the Senior Secured Note (as defined in Note 8) 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 this Form 10-Q.

During the three and six months ended June 30, 2025, and prior fiscal year ended December 31, 2024, we achieved operating income. This is attributable to the implementation and execution of several strategic initiatives, primarily, revenue growth initiatives and a capital raise from a private placement in October 2024, which have positively impacted our operations.

Despite the positive operating income in the current year, we continue to monitor our financial position closely.

In addition to the operational improvements, we are addressing our financial obligations, including the significant portion of debt that matures in September