Company: SNWV
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-038937
Chunk: 76

Company: SANUWAVE Health, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 76
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23, 2023, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with SEP Acquisition Corp., a Delaware corporation (“SEPA”), and SEP Acquisition Holdings Inc., a Nevada corporation and a wholly owned subsidiary of SEPA. Pursuant to the terms of the Merger Agreement, a business combination between the Company and SEPA was to be effected.On June 25, 2024, the Company delivered a notice to SEPA terminating the Merger Agreement.

5.       Allowance for Credit Losses

The Company maintains an allowance for credit losses to cover estimated losses on accounts receivable. The allowance is based on the Company's assessment of various factors, including historical loss experience, the age of receivables, current economic conditions, and the creditworthiness of customers. The allowance for credit losses is reviewed and adjusted as necessary at each reporting date.The roll-forward of the allowance for credit losses is as follows: (in thousands)Six Months Ended June 30, 2025Six Months Ended June 30, 2024Allowance for credit losses, December 31$1,147 $1,237 Provision for credit losses136113Write-offs(5)(156)Allowance for credit losses, June 30$1,278 $1,194 

6.      Inventory

Inventory consisted of the following:(in thousands)June 30, 2025December 31, 2024Finished goods$3,202 $386 Parts and accessories2,709 3,763 Total Inventory$5,911 $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 through August 30, 2030. The total minimum lease payments over the initial lease term amount to approximately $1.4 million.Right-of-use asset and lease liability