Company: SNWV
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-038937
Chunk: 90

Company: SANUWAVE Health, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 90
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encies

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.

18.        Segment Information

The Company operates in one reportable segment engaged in the design and sale of medical devices.The accounting policies of the one 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 profit 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.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 June 30,Six Months Ended June 30,(in thousands)2025202420252024Revenue$10,164 $7,162 $19,506 $12,948 Cost of Revenues2,206 1,922 4,164 3,506 Gross Margin7,958 5,240 15,342 9,442 Operating Expenses:General and administrative4,039 1,839 8,506 5,514 Selling and marketing1,674 1,034 3,205 2,266 Research and development194 195 402 358 Depreciation and amortization174 180 366 362 Total Operating Expenses6,081 3,248 12,479 8,500 Total Other Income (Expense)(822)4