SNWV 8-K
SANUWAVE Health, Inc. (SNWV)
8-K
2020-05-18
For: 2020-03-31
View Original
Added on
April 10, 2026
UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC
20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the
Securities Exchange Act of 1934
Date of report
(Date of earliest event reported): May 18,
2020
SANUWAVE Health, Inc.
(Exact Name of Registrant as Specified in Charter)
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Nevada
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000-52985
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20-1176000
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(State or Other Jurisdiction
of Incorporation)
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(Commission
File Number)
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(I.R.S. Employer
Identification No.)
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3360 Martin Farm Road, Suite 100
Suwanee, Georgia 30024
(Address of Principal Executive Offices, and Zip Code)
(770) 419-7525
Registrant’s Telephone Number, Including Area
Code
(Former Name or Former Address, if Changed Since Last
Report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2.
below):
☐ Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Securities
registered pursuant to Section 12(b) of the Exchange
Act:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common
stock, par value $0.001 per share
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SNWV.QB
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OTC
Bulletin Board
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Indicate
by check mark whether the registration is an emerging growth
company as defined in Rule 405 of the Securities Act of 1933 or
Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging
growth company. ☐
If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange
Act. ☐
Item 2.02 Results
of Operations and Financial Condition.
On May
18, 2020, SANUWAVE Health, Inc., a Nevada Corporation (the
"Company"), announced its financial results for the three months
ended March 31, 2020 and provided a business update via conference
call. A copy of the related press release is furnished as
Exhibit 99.1 to
this Form 8-K.
The
information in this Item 2.02 of this Current Report on Form 8-K
and the exhibit attached hereto shall not be deemed to be "filed"
for purposes of Section 18 of the Securities Exchange Act of 1934,
as amended, and shall not be deemed incorporated by reference in
any filing under the Securities Act of 1933, as amended, except as
shall be expressly set forth by specific reference in such
filing.
Item
9.01 Financial Statements and Exhibits.
(d)
Exhibits.
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Exhibit
No.
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Description
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Press release,
dated May 18, 2020, issued by SANUWAVE Health, Inc., titled
“SANUWAVE Health reports first quarter 2020 financial
results.”
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SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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SANUWAVE HEALTH, INC.
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Date:
May 18, 2020
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By:
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/s/
Lisa E.
Sundstrom
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Lisa E.
Sundstrom
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Controller
and Chief Financial Officer
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Exhibit 99.1
SANUWAVE HEALTH REPORTS FIRST QUARTER
2020 FINANCIAL RESULTS
SUWANEE, GA, May 18, 2020 - SANUWAVE Health,
Inc. (OTCQB:SNWV) reported financial results for the quarter
ended March 31, 2020 with the SEC on Friday, May 15, 2020. The
Company will also host a conference call today, May 18, 2020, at
10:00 a.m. Eastern Time.
Highlights from the quarter:
●
Launched dermaPACE®
System solutions to treat patients in
a home setting. Initial 10 sites successfully targeted for
implementation.
●
Placements
have begun in “Open States” in earnest as of last week.
Backlog for placements continues to grow for when open activity
resumes, everywhere.
●
Entered into an agreement to place
dermaPACE®
Systems with Mobile Health Systems
(MHS), a business recently launched by former SANUWAVE President
Shri Parikh.
●
Implemented
roughly $200,000 in monthly expense savings during
May.
●
PPP
expected to be received by the end of May/early June.
●
Entered
into an exclusive worldwide license agreement for
NanoVibronix’s surface acoustic wave ultrasound technology,
in the wound care market.
●
Successfully
filed a patent for use of shockwaves to treat respiratory ailments
including viral infections such as COVID-19, Chronic Obstructive
Pulmonary Disease (COPD), Cystic Fibrosis, Idiopathic Pulmonary
Fibrosis (IPF), Pneumonia, and Bronchitis.
●
Submitted
a grant proposal to the NIH (National Institute of Health) for
Phase 1 funding to explore shockwave pre-clinical research in the
area of respiratory ailments, specifically on the treatment of
COVID-19 and its debilitating health effects.
●
Gave
a grant proposal pitch to the NSF (National Science Foundation) for
the use of shockwaves in the COVID-19 treatment. SANUWAVE was
incited to submit a full-proposal on the subject for Phase 1
funding, which will be done at the beginning of June.
●
Will
host conference call Thursday May 28 to review new strategic
initiatives
“The pandemic is impacting all medical businesses, including
SANUWAVE. We are adapting quickly as a company by listening to and
meeting our customer’s needs. The global wound market does
not stop just because a pandemic is in place, but how and where
those patients can be treated needs to adjust. The bulk of diabetic
foot ulcer (DFU) patients will still be treated and are currently
being treated in the wound care centers, but many patients will
need to be treated with a new paradigm, which
dermaPACE®
can address. The first quarter was
disappointing from a revenue perspective, regardless of the
pandemic, so the leadership team has taken some restructuring
efforts to improve how we do business. These changes were
implemented during April and May and should show great signs of
improvement during the remainder of the second quarter and through
out 2020. These changes coupled with certain markets opening up
give us more hope of returning to a better normality for placements
and a focus on revenue per site. We also implemented cost savings
to provide a longer runway to reach profitability later this
year.” stated Kevin Richardson, CEO.
COVID-19 Business Update
Our top priority is the safety and well being of our employees,
along with the clinicians and medical communities they serve. We
have opened our office in Suwanee, GA with social distancing and
safety measures in place and continue to monitor the guidelines. We
have also continued a work from home schedule for employees, as
needed, unless asked to participate at a client site for training,
install or treatment assistance. Many hospitals are not allowing
sales representatives to enter the premises and many patients are
being asked to stay home. This is having an impact on our
procedures and placements in 2020 and is expected to continue until
restrictions at the hospital level begin to open up again. SANUWAVE
has begun to see placements pick up in the past week for the first
time in several weeks, as new installations occurred in the
Southeast Region where the states have eased restrictions.
International orders have also been picking up in the past weeks as
restrictions are lifted. The diabetic foot ulcer (DFU) patient
doesn’t not go away, their ailment, actually gets worse when
not treated. Our team is also continuing to build the back log of
future placements.
In our dosage clinical study from Poland, after an interruption of
few weeks, the patients started to come back for the
dermaPACE®
System treatments in increased numbers
when compared to pre COVID-19 crisis, which is an indication of the
great results that we see in this study and the level of trust that
our patients have in the dermaPACE®
System treatments,
In light of the inability for certain patients to receive care in a
hospital or outpatient-based setting, SANUWAVE Health was quick to
deploy our Home Health dermaPACE®
Mobile System treatments. We are
launching with 10 current customers and will begin treating
patients during May. The dermaPACE®
Mobile System is a unique advanced
care modality that can be transported and brought into the home
setting, unlike a hyperbaric machine or other surgical procedures.
Our customers are looking for ways to treat their patients and also
generate revenue to support their staffing levels. SANUWAVE’s
mobile model meets the needs of our customers. This new revenue
channel will incorporate telemedicine to help during the covid-19
pandemic, but also for the future of the wound
industry.
SANUWAVE is encouraged that demand is beginning to show signs of
life, but implemented a series of cost savings initiatives, which
were implemented in early May. The cost savings covered a voluntary
expense reduction, specifically targeting senior management,
eliminating travel and entertainment (T&E), and tradeshows,
cutting outside consultants and advisors, and streamlining many
internal processes. These savings have reduced our monthly burn by
roughly $200,000. At the same time the sales and account management
team re-focused their efforts on driving the metric of revenue per
account. This involved re-educating many sites on proper billing
techniques and data/claims collection to improve our revenue. This
effort began in March and we are seeing the early success of these
efforts in the second quarter. As a new device with a brand-new
tracking reimbursement code, SANUWAVE under-estimated the
educational curve needed to ensure proper training and coding by
the offices using our dermaPACE®
Systems. The process changes being
implemented will improve site revenue and SANUWAVE’s revenue
on a go-forward basis. Lastly, our company has been notified by our
bank that we will be receiving our Paycheck Protection Program
(PPP) request in the near future, providing extra liquidity while
we begin the recovery process.
SANUWAVE is also partnering with former SANUWAVE Health president
Shri Parikh, who is launching a mobile solution to wound care and
other treatments in the patient’s home setting. Mobile Health
Systems (“MHS”) will deliver wound treatments in a
mobile unit, which will go to the patient’s place of
residence and treat them in the respective mobile unit. MHS has
partnered with other wound care companies as well. We are excited
to partner with MHS and we are confident MHS will be an extremely
successful venture, which SANUWAVE can grow with in the future, as
MHS enters new regions around the country.
First Quarter Financial Results
Revenues
for the three months ended March 31, 2020 were $148,592,
compared to $177,963 for the same period in 2019, a decrease of
$29,371, or 17%. Revenue resulted primarily from sales in Europe of
our orthoPACE®
Systems, related applicators and spare parts for refurbishment
services performed by our Italian distributor. The decrease in
revenue for 2020 is primarily due to lower upfront international
distribution fees, as compared to the prior year. This is partially
offset by higher sales of spare parts for refurbishment of
applicators.
Operating
expenses for the three months ended March 31, 2020 were $2,855,544,
compared to $1,944,542 for the same period in 2019, an increase of
$911,002, or 47%. Research and development expenses increased by
$25,752. The increase was due to higher salary and related costs as
a result of hiring temporary employee and costs of Poland clinical
trial started in April 2019. Selling and marketing expenses
increased by $449,767, or 285%. The increase in sales and marketing
expenses was due to an increase in hiring of clinical account
managers and salespeople, increased travel expenses for placement
and training related to the commercialization of
dermaPACE®
Systems and increased commissions. General and administrative
expenses increased $390,816, or 26%. The increase was due to
engagement of specialists to assist with distribution partner
searches, increase in legal and consulting fees related to merger
and acquisition opportunities and increased director and officer
insurance which was partially offset by lower investor relations
costs and lower travel costs. In May we implemented expense savings
which lower our monthly expense burden by roughly $200,000. The
expenses eliminated were salaries, lower wages, outside
consultants, T&E, tradeshows, and marketing
expenses.
Net
loss for the three months ended March 31, 2020 was $3,001,148, or
($0.01) per basic and diluted share, compared to a net loss of $
2,197,317, or ($0.01) per basic and diluted share, for the same
period in 2019, a decrease in the net loss of $803,830, or
37%.
Conference Call
The Company will host a conference call Monday, May 18, 2020,
beginning at 10AM Eastern Time to discuss the first quarter of 2020
financial results, provide a business update and answer
questions.
Shareholders and other interested parties can participate in the
conference call by dialing 844-369-8770 (U.S.) or 862-298-0840
(international) or via webcast at https://www.webcaster4.com/Webcast/Page/2249/34890.
A replay of the conference call will be available beginning two
hours after its completion through May 25, 2020, by dialing
877-481-4010 (U.S.) or 919-882-2331 and entering replay passcode
34890 and a replay of the webcast will be available
at https://www.webcaster4.com/Webcast/Page/2249/34890 until
August 18, 2020.
About SANUWAVE Health, Inc.
SANUWAVE Health, Inc. (OTCQB:SNWV) (www.SANUWAVE.com)
is a shockwave technology company initially focused on the
development and commercialization of patented noninvasive,
biological response activating devices for the repair and
regeneration of skin, musculoskeletal tissue and vascular
structures. SANUWAVE’s portfolio of regenerative medicine
products and product candidates activate biologic signaling and
angiogenic responses, producing new vascularization and
microcirculatory improvement, which helps restore the body’s
normal healing processes and regeneration. SANUWAVE applies its
patented Pulsed Acoustic Cellular Expression
(PACE®)
technology in wound healing, orthopedic/spine, plastic/cosmetic and
cardiac conditions. Its lead product candidate for the global wound
care market, dermaPACE®
System, is US FDA cleared for the
treatment of Diabetic Foot Ulcers. The device is also CE
Marked throughout Europe and has device license approval for the
treatment of the skin and subcutaneous soft tissue in Canada, South
Korea, Australia and New Zealand. SANUWAVE researches, designs,
manufactures, markets and services its products worldwide, and
believes it has demonstrated that its technology is safe and
effective in stimulating healing in chronic conditions of the foot
(plantar fasciitis) and the elbow (lateral epicondylitis) through
its U.S. Class III PMA approved OssaTron® device,
as well as stimulating bone and chronic tendonitis regeneration in
the musculoskeletal environment through the utilization of its
OssaTron, Evotron® and
orthoPACE® Systems
in Europe, Asia and Asia/Pacific. In addition, there are
license/partnership opportunities for SANUWAVE’s shockwave
technology for non-medical uses, including energy, water, food and
industrial markets.
Forward-Looking Statements
This press release may contain “forward-looking
statements” within the meaning of the Private Securities
Litigation Reform Act of 1995, such as statements relating to
financial results and plans for future business development
activities, and are thus prospective. Forward-looking statements
include all statements that are not statements of historical fact
regarding intent, belief or current expectations of the Company,
its directors or its officers. Investors are cautioned that any
such forward-looking statements are not guarantees of future
performance and involve risks and uncertainties, many of which are
beyond the Company’s ability to control. Actual results may
differ materially from those projected in the forward-looking
statements. Among the key risks, assumptions and factors that may
affect operating results, performance and financial condition are
risks associated with the regulatory approval and marketing of the
Company’s product candidates and products, unproven
pre-clinical and clinical development activities, regulatory
oversight, the Company’s ability to manage its capital
resource issues, competition, and the other factors discussed in
detail in the Company’s periodic filings with the Securities
and Exchange Commission. The Company undertakes no obligation to
update any forward-looking statement.
For additional information about the Company, visit
www.sanuwave.com.
Contact:
Millennium
Park Capital LLC
Christopher
Wynne
312-724-7845
SANUWAVE
Health, Inc.
Kevin
Richardson II
CEO and
Chairman of the Board
978-922-2447
(FINANCIAL TABLES FOLLOW)
SANUWAVE
HEALTH, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
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March
31,
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December
31,
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2020
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2019
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ASSETS
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(Unaudited)
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CURRENT
ASSETS
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Cash and cash
equivalents
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$1,346,892
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$1,760,455
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Accounts
receivable, net of allowance for doubtful accounts
|
103,611
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75,543
|
|
|
Inventory
|
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518,767
|
542,955
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Prepaid expenses
and other current assets
|
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229,519
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125,405
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|
TOTAL CURRENT
ASSETS
|
|
2,198,789
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2,504,358
|
|
|
|
|
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PROPERTY AND
EQUIPMENT, net
|
|
591,485
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512,042
|
|
|
|
|
|
|
RIGHT OF USE
ASSETS, net
|
|
283,456
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323,661
|
|
|
|
|
|
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OTHER
ASSETS
|
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43,096
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41,931
|
|
TOTAL
ASSETS
|
|
$3,116,826
|
$3,381,992
|
|
|
|
|
|
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LIABILITIES
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
Accounts
payable
|
|
$1,116,372
|
$1,439,413
|
|
Accrued
expenses
|
|
1,176,235
|
1,111,109
|
|
Accrued employee
compensation
|
|
1,741,816
|
1,452,910
|
|
Contract
liabilities
|
|
555,208
|
66,577
|
|
Operating lease
liability
|
|
176,397
|
173,270
|
|
Finance lease
liability
|
|
159,789
|
121,634
|
|
Advances from
related parties
|
|
16,000
|
18,098
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|
Line of credit,
related parties
|
|
214,505
|
212,388
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|
Accrued interest,
related parties
|
|
2,042,541
|
1,859,977
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Short term notes
payable
|
|
323,249
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587,233
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Notes payable,
related parties, net
|
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5,372,743
|
5,372,743
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TOTAL CURRENT
LIABILITIES
|
|
12,894,855
|
12,415,352
|
|
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|
|
|
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NON-CURRENT
LIABILITIES
|
|
|
|
|
Contract
liabilities
|
|
61,938
|
573,224
|
|
Operating lease
liability
|
|
139,333
|
185,777
|
|
Finance lease
liability
|
|
332,641
|
271,240
|
|
TOTAL NON-CURRENT
LIABILITIES
|
|
533,912
|
1,030,241
|
|
TOTAL
LIABILITIES
|
|
13,428,767
|
13,445,593
|
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|
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COMMITMENTS AND
CONTINGENCIES
|
|
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REDEEMABLE
PREFERRED STOCK, SERIES C CONVERTIBLE, par value
$0.001,
|
|
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90 designated; 90
shares issued and outstanding in 2020
|
2,250,000
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-
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|
|
|
|
|
|
|
|
|
|
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STOCKHOLDERS'
DEFICIT
|
|
|
|
|
PREFERRED STOCK,
par value $0.001, 5,000,000
|
|
|
|
|
shares authorized;
6,175 and 293 shares designated Series A and
|
-
|
-
|
|
|
Series B,
respectively; none issued and outstanding in 2020 and
|
|
|
|
|
2019,
respectively
|
|
|
|
|
|
|
|
|
|
COMMON STOCK, par
value $0.001, 350,000,000 shares authorized;
|
|
|
|
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297,663,672 and
293,780,400 issued and outstanding in 2020 and
|
|
|
|
|
2019,
respectively
|
|
297,664
|
293,781
|
|
|
|
|
|
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ADDITIONAL PAID-IN
CAPITAL
|
|
115,951,907
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115,457,808
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|
|
|
|
|
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ACCUMULATED
DEFICIT
|
|
(128,754,104)
|
(125,752,956)
|
|
|
|
|
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ACCUMULATED OTHER
COMPREHENSIVE LOSS
|
|
(57,408)
|
(62,234)
|
|
TOTAL STOCKHOLDERS'
DEFICIT
|
|
(12,561,941)
|
(10,063,601)
|
|
TOTAL LIABILITIES,
MEZZANINE EQUITY AND STOCKHOLDERS' DEFICIT
|
$3,116,826
|
$3,381,992
|
|
SANUWAVE
HEALTH, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
(UNAUDITED)
|
|
Three
Months Ended
|
Three
Months Ended
|
|
|
March
31,
|
March
31,
|
|
|
2020
|
2019
|
|
|
|
|
|
REVENUES
|
|
|
|
Product
|
$74,559
|
$64,565
|
|
License
fees
|
10,000
|
106,250
|
|
Other
revenue
|
64,033
|
7,148
|
|
TOTAL
REVENUES
|
148,592
|
177,963
|
|
|
|
|
|
COST OF
REVENUES
|
|
|
|
Product
|
78,915
|
65,112
|
|
Other
|
9,962
|
28,741
|
|
TOTAL COST OF
REVENUES
|
88,877
|
93,853
|
|
|
|
|
|
GROSS
MARGIN
|
59,715
|
84,110
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
Research and
development
|
286,754
|
261,002
|
|
Selling and
marketing
|
607,850
|
158,083
|
|
General and
administrative
|
1,907,917
|
1,517,100
|
|
Depreciation
|
53,023
|
8,357
|
|
TOTAL OPERATING
EXPENSES
|
2,855,544
|
1,944,542
|
|
|
|
|
|
OPERATING
LOSS
|
(2,795,829)
|
(1,860,432)
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
Gain on warrant
valuation adjustment
|
-
|
32,359
|
|
Interest
expense
|
(18,732)
|
(148,261)
|
|
Interest expense,
related party
|
(182,564)
|
(219,687)
|
|
Loss on foreign
currency exchange
|
(4,023)
|
(1,296)
|
|
TOTAL OTHER INCOME
(EXPENSE), NET
|
(205,319)
|
(336,885)
|
|
|
|
|
|
NET
LOSS
|
(3,001,148)
|
(2,197,317)
|
|
|
|
|
|
OTHER COMPREHENSIVE
INCOME (LOSS)
|
|
|
|
Foreign currency
translation adjustments
|
4,628
|
(2,398)
|
|
TOTAL COMPREHENSIVE
LOSS
|
$(2,996,520)
|
$(2,199,715)
|
|
|
|
|
|
LOSS PER
SHARE:
|
|
|
|
Net loss - basic
and diluted
|
$(0.01)
|
$(0.01)
|
|
|
|
|
|
Weighted average
shares outstanding - basic and diluted
|
296,061,866
|
157,112,875
|
SANUWAVE
HEALTH, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS'
DEFICIT
(UNAUDITED)
|
|
Preferred
Stock
|
Common
Stock
|
|
|
|
|
||
|
|
Number
of
|
|
Number
of
|
|
|
|
Accumulated
|
|
|
|
Shares
|
|
Shares
|
|
Additional
|
Other
|
|
|
|
|
Issued
and
|
|
Issued
and
|
|
Paid-
|
Accumulated
|
Comprehensive
|
|
|
|
Outstanding
|
Par
Value
|
Outstanding
|
Par
Value
|
in
Capital
|
Deficit
|
Loss
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of
Janaury 1, 2019
|
-
|
$-
|
155,665,138
|
$155,665
|
$101,153,882
|
$(116,602,778)
|
$(62,868)
|
$(15,356,099)
|
|
Net
loss
|
-
|
-
|
-
|
-
|
-
|
(2,197,317)
|
-
|
(2,197,317)
|
|
Cashless warrant
exercises
|
-
|
-
|
704,108
|
704
|
(704)
|
-
|
-
|
-
|
|
Proceeds from
warrant exercise
|
-
|
-
|
620,000
|
620
|
52,580
|
-
|
-
|
53,200
|
|
Conversion of short
term notes and convertible notes payable
|
-
|
-
|
3,333,334
|
3,334
|
263,333
|
-
|
-
|
266,667
|
|
Reclassification of
warrant liability to equity due to adoption of ASU
2017-11
|
-
|
-
|
-
|
-
|
262,339
|
1,279,661
|
-
|
1,542,000
|
|
Foreign currency
translation adjustment
|
-
|
-
|
-
|
-
|
-
|
-
|
(2,398)
|
(2,398)
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of
March 31, 2019
|
-
|
$-
|
160,322,580
|
$160,323
|
$101,731,430
|
$(117,520,434)
|
$(65,266)
|
$(15,693,947)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of
Janaury 1, 2020
|
-
|
$-
|
293,780,400
|
$293,781
|
$115,457,808
|
$(125,752,956)
|
$(62,234)
|
$(10,063,601)
|
|
Net
loss
|
-
|
-
|
-
|
-
|
-
|
(3,001,148)
|
-
|
(3,001,148)
|
|
Proceeds from
warrant exercise
|
-
|
-
|
1,000,000
|
1,000
|
9,000
|
-
|
-
|
10,000
|
|
Shares issued for
services
|
-
|
-
|
1,000,000
|
1,000
|
199,000
|
-
|
-
|
200,000
|
|
Stock-based
compensation
|
-
|
-
|
-
|
-
|
21,900
|
-
|
-
|
21,900
|
|
Conversion of short
term notes
|
-
|
-
|
1,820,461
|
1,820
|
262,164
|
-
|
-
|
263,984
|
|
Conversion of
advances from related partis
|
-
|
-
|
62,811
|
63
|
2,035
|
-
|
-
|
2,098
|
|
Foreign currency
translation adjustment
|
-
|
-
|
-
|
-
|
-
|
-
|
4,826
|
4,826
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of
March 31, 2020
|
-
|
$-
|
297,663,672
|
$297,664
|
$115,951,907
|
$(128,754,104)
|
$(57,408)
|
$(12,561,941)
|
SANUWAVE
HEALTH, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
Three
Months Ended
|
Three
Months Ended
|
|
|
March
31,
|
March
31,
|
|
|
2020
|
2019
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net
loss
|
$(3,001,148)
|
$(2,197,317)
|
|
Adjustments
to reconcile net loss
|
|
|
|
to
net cash used by operating activities
|
|
|
|
Depreciation
|
53,023
|
8,357
|
|
Change in allowance
for doubtful accounts
|
83,306
|
(8,645)
|
|
Share-based
payment
|
221,900
|
-
|
|
Gain on warrant
valuation adjustment
|
-
|
(32,359)
|
|
Amortization of
operating leases
|
(3,112)
|
(1,735)
|
|
Accrued
interest
|
2,117
|
147,028
|
|
Interest payable,
related parties
|
182,564
|
219,687
|
|
Changes in
operating assets and liabilities
|
|
|
|
Accounts
receivable - trade
|
(111,374)
|
103,579
|
|
Inventory
|
24,188
|
29,436
|
|
Prepaid
expenses
|
(104,114)
|
(71,450)
|
|
Due
from related parties
|
-
|
(1,471)
|
|
Other
assets
|
(1,165)
|
(7,013)
|
|
Operating
leases
|
-
|
44,623
|
|
Accounts
payable
|
(323,041)
|
187,465
|
|
Accrued
expenses
|
65,126
|
64,114
|
|
Accrued
employee compensation
|
288,906
|
236,807
|
|
Contract
liabilties
|
(22,655)
|
(6,657)
|
|
NET CASH USED BY
OPERATING ACTIVITIES
|
(2,645,479)
|
(1,285,551)
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
Purchases of
property and equipment
|
(4,855)
|
(22,054)
|
|
NET CASH USED BY
INVESTING ACTIVITIES
|
(4,855)
|
(22,054)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
Proceeds from sale
of convertible preferred stock
|
2,250,000
|
-
|
|
Proceeds from
warrant exercise
|
10,000
|
53,200
|
|
Proceeds from short
term note
|
-
|
965,000
|
|
Advances from
related parties
|
-
|
26,200
|
|
Payments of
principal on finance leases
|
(28,055)
|
-
|
|
NET CASH PROVIDED
BY FINANCING ACTIVITIES
|
2,231,945
|
1,044,400
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATES ON CASH
|
4,826
|
(2,398)
|
|
|
|
|
|
NET DECREASE IN
CASH AND CASH EQUIVALENTS
|
(413,563)
|
(265,603)
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
|
1,760,455
|
364,549
|
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
$1,346,892
|
$98,946
|
|
|
|
|
|
NONCASH INVESTING
AND FINANCING ACTIVITIES
|
|
|
|
Conversion of short
term notes payable to equity
|
$263,984
|
$266,667
|
|
|
|
|
|
|
|
|
|
Conversion of
advances from related parties to equity
|
$2,098
|
$-
|
|
|
|
|
|
|
|
|
|
Additions to right
of use assets from new finance lease liabilities
|
$127,611
|
$-
|
|
|
|
|
|
|
|
|
|
Reclassification of
warrant liability to equity
|
$-
|
$262,339
|