Company: SNWV
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023881
Chunk: 88

Company: SANUWAVE Health, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 88
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% of total revenue in the three months ended March 31, 2025, and over 90% in the same period of 2024.

Cost of Revenue

Cost of revenues for the three months ended March 31, 2025, was $2.0 million, compared to $1.6 million for the same period of 2024. Gross profit as a percentage of revenues was 79% for the three months ended March 31, 2025, compared to 73% for the same period in 2024. This increase in gross margin was largely driven by improved pricing initiatives on our UltraMIST® systems and applicators.

General and Administrative

General and administrative expenses for the three months ended March 31, 2025, were $4.5 million as compared to $3.7 million for the same period of 2024, an increase of $0.8 million, or 22%. The increase in the three months ended March 31, 2025, as compared to the same period of 2024, was primarily due to non-cash charges for stock-based compensation expense totaling $0.8 million.

Selling and Marketing

Selling and marketing expenses for the three months ended March 31, 2025, were $1.5 million as compared to $1.2 million for the same period of 2024, an increase of $0.3 million, or 24%. The year-over-year increase in sales and marketing expenses in the three months ended March 31, 2025, was largely driven by increased headcount and non-cash charges for stock-based compensation.

Research and Development

Research 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,