8-K
SANUWAVE Health, Inc. (SNWV)
1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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) | November 7, 2025 | | --- | --- || SANUWAVE Health, Inc. | | --- | | (Exact name of registrant as specified in its charter) || Nevada | 000-42552 | 20-1176000 | | --- | --- | --- | | (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) || 9600 W. 76th Street, Suite 118, | Eden Prairie, | Minnesota | 55344 | | --- | --- | --- | --- | | (Address of principal executive offices) | | | (Zip Code) || Registrant’s telephone number, including area code | (952) | 656-1029 | | --- | --- | --- || N/A | | --- | | (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 Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which<br><br>registered |
|---|---|---|
| Common stock, par value $0.001 per share | SNWV | The Nasdaq Stock Market LLC |
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 o
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. o
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Item 2.02 Results of Operations and Financial Condition.
On November 7, 2025, Sanuwave Health, Inc., a Nevada corporation (the “Company”), issued a press release announcing its financial results for the third quarter ended September 30, 2025. As previously announced, a business update via conference call will occur on November 7, 2025 at 8:30 am EST. Materials are provided on the Company’s website at www.sanuwave.com/investors.
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.
| Exhibit<br><br>No. | Description |
|---|---|
| 99.1 | Press Release dated November 7, 2025 |
| 104 | Cover Page Interactive Data File--the cover page XBRL tags are embedded within the Inline XBRL document. |
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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.
| SANUWAVE HEALTH, INC. | ||
|---|---|---|
| Dated: November 7, 2025 | By: | /s/ Peter Sorensen |
| Name: | Peter Sorensen | |
| Title: | Chief Financial Officer |
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Document
Exhibit 99.1
Sanuwave Announces Q3 FY2025 Financial Results
Q3 2025 revenues were $11.5 million, up 22% from $9.4 million in Q3 2025. This represents the highest quarterly revenues in Company history.
Q3 2025 gross margin was 77.9%, versus 75.5% in Q3 2024.
GAAP Operating Income was $1.5 million for Q3 2025 versus $2.0 million in Q3 2024. Q3 2025 included stock-based compensation costs of $1.4 million versus $0 in Q3 2024.
Company provides guidance for revenues of $13-$14 million for Q4 2025.
EDEN PRAIRIE, MN, November 7, 2025 (GLOBE NEWSWIRE) -- Sanuwave Health, Inc. (the "Company" or "Sanuwave”) (NASDAQ: SNWV), a leading provider of next-generation FDA-approved wound care products, is pleased to provide its financial results for the three months ended September 30, 2025.
Quarter ended September 30, 2025
•Revenue for the three months ended September 30, 2025, totaled $11.5 million, an increase of 22%, as compared to $9.4 million for the same period of 2024 and an increase of 13% sequentially from Q2 2025. This represents the highest quarterly revenues in Company history. While below our guidance, this growth was in line with the preliminary range of results of $11.4-$11.6 million provided on October 6, 2025.
•155 UltraMist® systems were sold in Q3 2025 (an all time quarterly record) up from 124 in Q3 2024, and from 116 in Q2 2025.
•UltraMist® consumables revenue increased by 26% to $6.8 million in Q3 2025, as compared to $5.4 million for the same quarter last year and increased 6% sequentially from Q2 2025.
•UltraMist® revenue represented 99% of Sanuwave’s overall revenues in Q3 2025.
•Gross margin as a percentage of revenue amounted to 77.9% for the three months ended September 30, 2025, versus 75.5% for the same period last year and 78.3% in the prior quarter.
•For the three months ended September 30, 2025, operating income totaled $1.5 million, compared to $2.0 million in Q3 2024 and $1.9 million in Q2 2025. Q3 2025 operating expenses included $1.4 million of stock-based compensation costs versus $0 in the same period in 2024 and $1.1 million in Q2 2025.
•Net income for the third quarter of 2025 was $10.3 million compared to a net loss of $20.7 million in the third quarter of 2024. The increase in net income was primarily driven by the change in fair value of derivative liabilities which resulted in a non-cash gain of $6.1 million in Q3 2025 versus an $18.8 million loss in Q3 2024, representing a $25.0 million year over year variance. Net income in Q3 2025 also benefitted from a $5.0 million payment for the sale of certain shockwave patents.
•Adjusted EBITDA [1] for the three months ended September 30, 2025, was $3.5 million versus Adjusted EBITDA of $2.1 million for the same period last year.
“Despite the headwinds in the quarter arising from uncertainty about proposed reimbursement changes to certain wound care modalities, particularly skin substitutes/allografts, Sanuwave achieved record revenues in Q3 2025 for both systems and applicators, achieving 22% year on year growth against the difficult comparison of Q3 last year when a large order drove 89% year on year growth,” said CEO Morgan Frank. “System sales in particular were a bright spot with 155 systems sold in the quarter. Applicator sales were also an all-time high despite being suppressed by lower patient volumes treated by our providers. It looked to us as though the whole industry sort of ‘took its foot off the gas’ for a minute as it waited for clarity on proposed reimbursement changes and that concerns about compliance and audits led practitioners to adopt, at the margin, a cautious ‘wait and see’ attitude on initiating a number of kinds of advanced wound care regimens for patients. On Friday, October 31, 2025, after close of business, CMS published its final rule for 2026 Medicare physician fees. 2026 reimbursement for the 97610 code was in line with our expectations of a slight increase versus 2025 and was not affected by cuts to other modalities. Times of sudden change can make for bumpy periods, and while it’s still very early to assess industry reaction to the new CMS rule, our sense is that any certainty is better than such large uncertainty and that the market will now move to adapt. We’re seeing a lot of inbound interest from customers and distribution partners and our sales pipeline remains robust. This continues to make us highly optimistic about the future.”
Certain percentages presented in this earnings release are calculated from the underlying whole-dollar amounts and therefore may not recalculate from the rounded numbers used for disclosure purposes.
Financial Outlook
The Company forecasts Q4 2025 revenue of $13-$14 million and full year revenue of $44-$45 million. (35-39% vs full year 2024).
As previously announced, a business update will occur via conference call on November 7, 2025 at 8:30 a.m. EST. Materials for the conference call are included on the Company’s website at http://www.sanuwave.com/investors.
Telephone access to the call will be available by dialing the following numbers:
Toll Free:1-800-274-8461
Toll/International: 1-203-518-9814
Conference ID: SANUWAVE
OR use the link for instant telephone access to the event.
https://viavid.webcasts.com/starthere.jsp?ei=1741017&tp_key=73ef3b515a
A replay will be made available through November 28, 2025:
Toll-Free: 1-844-512-2921 or 1-412-317-6671
Replay Access ID: 11160405
[1] This is a non-GAAP financial measure. Refer to “Non-GAAP Financial Measures” and the reconciliations in this release for further information.
About Sanuwave
Sanuwave Health is focused on the research, development, and commercialization of its patented, non-invasive and biological response-activating medical systems for the repair and regeneration of skin, musculoskeletal tissue, and vascular structures.
Sanuwave's end-to-end wound care portfolio of regenerative medicine products and product candidates help restore the body’s normal healing processes. Sanuwave applies and researches its patented energy transfer technologies in wound healing, orthopedic/spine, aesthetic/cosmetic, and cardiac/endovascular conditions.
Non-GAAP Financial Measures
This press release includes certain financial measures that are not presented in our financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). These financial measures are considered "non-GAAP financial measures" and are intended to supplement, and should not be considered as superior to, or a replacement for, financial measures presented in accordance with U.S. GAAP.
The Company uses Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) and Adjusted EBITDA to assess its operating performance. Adjusted EBITDA is Earnings before Interest, Taxes, Depreciation and Amortization adjusted for the change in fair value of derivatives and any significant non-cash or infrequent charges. EBITDA and Adjusted EBITDA should not be considered as alternatives to net income (loss) as a measure of financial performance or any other performance measure derived in accordance with U.S. GAAP, and they should not be construed as an inference that the Company’s future results will be unaffected by unusual or infrequent items. These non-GAAP financial measures are presented in a consistent manner for each period, unless otherwise disclosed. The Company uses these measures for the purpose of evaluating its historical and prospective financial performance, as well as its performance relative to competitors. These measures also help the Company to make operational and strategic decisions. The Company believes that providing this information to investors, in addition to U.S. GAAP measures, allows them to see the Company’s results through the eyes of management, and to better understand its historical and future financial performance. These non-GAAP financial measures are also frequently used by analysts, investors, and other interested parties to evaluate companies in our industry, when considered alongside other U.S. GAAP measures.
EBITDA and Adjusted EBITDA have their limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under U.S. GAAP. Some of these limitations are that EBITDA and Adjusted EBITDA:
•Do not reflect every expenditure, future requirements for capital expenditures or contractual commitments.
•Do not reflect all changes in our working capital needs.
•Do not reflect interest expense, or the amount necessary to service our outstanding debt.
As presented in the U.S. GAAP to Non-GAAP Reconciliations section below, the Company’s non-GAAP financial measures exclude the impact of certain charges that contribute to our net income (loss).
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 future financial results, production expectations, and plans for future business development activities. 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 regulatory oversight, changes in reimbursement levels for the Company's products and related services, the Company’s ability to manage its capital resources, 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, except as may be required by applicable law.
Contact: investors@sanuwave.com
SELECTED FINANCIAL DATA
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
| Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Revenue | $ | 11,451 | $ | 9,360 | $ | 30,957 | $ | 22,308 | ||||
| Cost of Revenues | 2,526 | 2,293 | 6,690 | 5,799 | ||||||||
| Gross Margin | 8,925 | 7,067 | 24,267 | 16,509 | ||||||||
| Gross Margin % | 77.9 | % | 75.5 | % | 78.4 | % | 74.0 | % | ||||
| Total operating expenses | 7,458 | 5,114 | 19,937 | 13,614 | ||||||||
| Operating Income | $ | 1,467 | $ | 1,953 | $ | 4,330 | $ | 2,895 | ||||
| Total other income (expense) | 8,858 | (22,610) | 1,374 | (21,519) | ||||||||
| Net Income (Loss) | $ | 10,325 | $ | (20,657) | $ | 5,704 | $ | (18,624) |
NON-GAAP ADJUSTED EBITDA
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| (in thousands) | 2025 | 2024 | 2025 | 2024 | ||||
| Net Income (Loss) | $ | 10,325 | $ | (20,657) | $ | 5,704 | $ | (18,624) |
| Non-GAAP Adjustments: | ||||||||
| Interest expense | 1,722 | 3,661 | 5,448 | 11,004 | ||||
| Depreciation and amortization | 329 | 256 | 902 | 736 | ||||
| EBITDA | 12,376 | (16,740) | 12,054 | (6,884) | ||||
| Non-GAAP Adjustments for Adjusted EBITDA: | ||||||||
| Change in fair value of derivative liabilities | (6,097) | 18,849 | (2,186) | 17,633 | ||||
| Other non-cash or infrequent charges: | ||||||||
| Stock-based compensation | 1,397 | - | 3,513 | - | ||||
| Loss (Gain) on extinguishment of debt | 477 | - | 477 | (5,205) | ||||
| Loss on impairment of assets | 196 | - | 196 | - | ||||
| Severance agreement and legal settlement | 113 | - | 113 | 585 | ||||
| Release of historical accrued expenses | - | - | - | (579) | ||||
| Gain on license and option agreement | (5,000) | - | (5,000) | (2,500) | ||||
| Prepaid legal fees expensed from termination of Merger Agreement | - | - | - | 457 | ||||
| Adjusted EBITDA | $ | 3,462 | $ | 2,109 | $ | 9,167 | $ | 3,507 |
CONDENSED CONSOLIDATED BALANCE SHEETS
| (In thousands, except share data) | September 30, 2025 | December 31, 2024 | ||
|---|---|---|---|---|
| ASSETS | ||||
| Current Assets: | ||||
| Cash and cash equivalents | $ | 9,602 | $ | 10,237 |
| Accounts receivable, net of allowance of $1,259 and $1,147, respectively | 4,620 | 3,329 | ||
| Inventory | 6,814 | 4,149 | ||
| Prepaid expenses and other current assets | 1,597 | 682 | ||
| Total Current Assets | 22,633 | 18,397 | ||
| Non-Current Assets: | ||||
| Property and equipment, net | 1,994 | 303 | ||
| Right of use assets, net | 431 | 429 | ||
| Intangible assets, net | 3,202 | 3,730 | ||
| Goodwill | 7,260 | 7,260 | ||
| Secured revolving credit facility debt issuance costs, net | 79 | - | ||
| Total Non-Current Assets | 12,966 | 11,722 | ||
| Total Assets | $ | 35,599 | $ | 30,119 |
| LIABILITIES | ||||
| Current Liabilities: | ||||
| Current portion of secured term loan | $ | 5,629 | $ | - |
| Senior secured debt | - | 25,305 | ||
| Accounts payable | 3,992 | 3,728 | ||
| Accrued expenses | 3,586 | 4,678 | ||
| Warrant liability | 5,921 | 8,107 | ||
| Current portion of operating lease liabilities | 191 | 126 | ||
| Current portion of finance lease liabilities | - | 175 | ||
| Current portion of contract liabilities | 252 | 193 | ||
| Other | 6 | 33 | ||
| Total Current Liabilities | 19,577 | 42,345 | ||
| Non-current Liabilities: | ||||
| Secured term loan, net of current portion and debt issuance costs | 17,079 | - | ||
| Secured revolving credit facility | 655 | - | ||
| Operating lease liabilities, less current portion | 897 | 125 | ||
| Finance lease liabilities, less current portion | - | 66 | ||
| Contract liabilities, less current portion | 322 | 300 | ||
| Total Non-current Liabilities | 18,953 | 491 | ||
| Total Liabilities | $ | 38,530 | $ | 42,836 |
| STOCKHOLDERS’ DEFICIT | ||||
| --- | --- | --- | --- | --- |
| Preferred Stock, par value $0.001, 5,000,000 shares authorized; 6,175 shares Series A, 293 shares Series B, 90 shares Series C and 8 shares Series D designated, respectively; no shares issued and outstanding at September 30, 2025 and December 31, 2024 | $ | - | $ | - |
| Common stock, par value $0.001, 2,500,000,000 shares authorized; 8,576,164 and 8,543,686 issued and outstanding at September 30, 2025 and December 31, 2024, respectively | 9 | 9 | ||
| Additional paid-in capital | 242,767 | 238,685 | ||
| Accumulated deficit | (245,717) | (251,421) | ||
| Accumulated other comprehensive loss | 10 | 10 | ||
| Total Stockholders’ Deficit | (2,931) | (12,717) | ||
| Total Liabilities and Stockholders’ Deficit | $ | 35,599 | $ | 30,119 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
| (In thousands, except share and per share data) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |||||
| Revenue | $ | 11,451 | $ | 9,360 | $ | 30,957 | $ | 22,308 |
| Cost of Revenues | 2,526 | 2,293 | 6,690 | 5,799 | ||||
| Gross Margin | 8,925 | 7,067 | 24,267 | 16,509 | ||||
| Operating Expenses: | ||||||||
| General and administrative | 4,810 | 2,545 | 13,316 | 8,059 | ||||
| Selling and marketing | 2,081 | 2,202 | 5,286 | 4,468 | ||||
| Research and development | 345 | 161 | 747 | 519 | ||||
| Depreciation and amortization | 222 | 206 | 588 | 568 | ||||
| Total Operating Expenses | 7,458 | 5,114 | 19,937 | 13,614 | ||||
| Operating Income | 1,467 | 1,953 | 4,330 | 2,895 | ||||
| Other Income (Expense): | ||||||||
| Interest expense | (1,722) | (3,315) | (5,448) | (9,948) | ||||
| Interest expense, related party | - | (346) | - | (1,056) | ||||
| Gain (Loss) on extinguishment of debt | (477) | - | (477) | 5,205 | ||||
| Change in fair value of derivative liabilities | 6,097 | (18,849) | 2,186 | (17,633) | ||||
| Loss on impairment of assets | (196) | - | (196) | - | ||||
| Other expense | (14) | (106) | (42) | (893) | ||||
| Other income | 5,170 | 6 | 5,351 | 2,806 | ||||
| Total Other Income (Expense) | 8,858 | (22,610) | 1,374 | (21,519) | ||||
| Net Income (Loss) | 10,325 | (20,657) | 5,704 | (18,624) | ||||
| Other Comprehensive Income (Loss) | ||||||||
| Foreign currency translation adjustment | - | - | - | 121 | ||||
| Total Comprehensive Income (Loss) | $ | 10,325 | $ | (20,657) | $ | 5,704 | $ | (18,503) |
| Earnings (Loss) per Share: | ||||||||
| Basic | $ | 1.20 | $ | (6.49) | $ | 0.67 | $ | (5.92) |
| Diluted | $ | 0.46 | $ | (6.49) | $ | 0.38 | $ | (5.92) |
| Weighted average shares outstanding | ||||||||
| Basic | 8,571,111 | 3,185,495 | 8,560,174 | 3,146,000 | ||||
| Diluted | 9,140,668 | 3,185,495 | 9,178,144 | 3,146,000 |
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT
(In thousands, except share data)
| Three Months Ended September 30, 2025 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Common Stock | |||||||||||
| Number of Shares<br> Issued and Outstanding | Par Value | Additional Paid-<br>in Capital | Accumulated <br>Deficit | Accumulated Other<br>Comprehensive<br>Loss | Total | ||||||
| Balances as of June 30, 2025 | 8,568,005 | $ | 9 | $ | 241,248 | $ | (256,042) | $ | 10 | $ | (14,775) |
| Stock-based compensation | - | - | 1,397 | - | - | 1,397 | |||||
| Stock options exercised | 8,159 | - | 122 | - | - | 122 | |||||
| Net income | - | - | - | 10,325 | - | 10,325 | |||||
| Balances as of September 30, 2025 | 8,576,164 | $ | 9 | $ | 242,767 | $ | (245,717) | $ | 10 | $ | (2,931) |
| Three Months Ended September 30, 2024 | |||||||||||
| Common Stock | |||||||||||
| Number of Shares<br> Issued and Outstanding | Par Value | Additional Paid-<br>in Capital | Accumulated <br>Deficit | Accumulated Other<br>Comprehensive<br>Loss | Total | ||||||
| Balances as of June 30, 2024 | 3,150,062 | $ | 3 | $ | 178,397 | $ | (218,016) | $ | 10 | $ | (39,606) |
| Net loss | - | - | - | (20,657) | - | (20,657) | |||||
| Balances as of September 30, 2024 | 3,150,062 | $ | 3 | $ | 178,397 | $ | (238,673) | $ | 10 | $ | (60,263) |
| Nine Months Ended September 30, 2025 | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Common Stock | |||||||||||
| Number of Shares<br> Issued and Outstanding | Par Value | Additional Paid-<br>in Capital | Accumulated <br>Deficit | Accumulated Other<br>Comprehensive<br>Loss | Total | ||||||
| Balances as of December 31, 2024 | 8,543,686 | $ | 9 | $ | 238,685 | $ | (251,421) | $ | 10 | $ | (12,717) |
| Stock-based compensation | 4,787 | - | 3,630 | - | - | 3,630 | |||||
| Stock options exercised | 25,167 | - | 375 | - | - | 375 | |||||
| Shares granted in lieu of board of director fees | 2,524 | - | 77 | - | - | 77 | |||||
| Net income | - | - | - | 5,704 | - | 5,704 | |||||
| Balances as of September 30, 2025 | 8,576,164 | $ | 9 | $ | 242,767 | $ | (245,717) | $ | 10 | $ | (2,931) |
| Nine Months Ended September 30, 2024 | |||||||||||
| Common Stock | |||||||||||
| Number of Shares<br> Issued and Outstanding | Par Value | Additional Paid-<br>in Capital | Accumulated <br>Deficit | Accumulated Other<br>Comprehensive<br>Loss | Total | ||||||
| Balances as of December 31, 2023 | 3,041,492 | $ | 3 | $ | 176,979 | $ | (220,049) | $ | (111) | $ | (43,178) |
| Shares issued for settlement of warrants | 14,440 | - | 6 | - | - | 6 | |||||
| Shares issued for settlement of debt | 94,130 | - | 1,412 | - | - | 1,412 | |||||
| Foreign currency translation adjustment | - | - | - | - | 121 | 121 | |||||
| Net loss | - | - | - | (18,624) | - | (18,624) | |||||
| Balances as of September 30, 2024 | 3,150,062 | $ | 3 | $ | 178,397 | $ | (238,673) | $ | 10 | $ | (60,263) |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| Nine Months Ended September 30, | ||||
|---|---|---|---|---|
| (in thousands) | 2025 | 2024 | ||
| Cash Flows - Operating Activities: | ||||
| Net income (loss) | $ | 5,704 | $ | (18,624) |
| Adjustments to reconcile net income to net cash (used in) provided by operating activities | ||||
| Stock-based compensation | 3,513 | - | ||
| Depreciation and amortization | 634 | 570 | ||
| Amortization of right-of-use assets | 268 | 268 | ||
| Allowance for credit losses | 112 | 16 | ||
| Loss on disposal and impairment of assets | 210 | - | ||
| Loss (Gain) on extinguishment of debt | 477 | (5,205) | ||
| Change in fair value of derivative liabilities | (2,186) | 17,633 | ||
| Gain on sale of patents | (5,000) | - | ||
| Amortization of debt issuance costs and debt discounts | 1,416 | 4,792 | ||
| Gain on lease modification | (7) | - | ||
| Accrued interest and accrued interest, related party | - | 2,749 | ||
| Proceeds from tenant improvement funds | 586 | - | ||
| Changes in operating assets and liabilities | ||||
| Accounts receivable | (1,387) | 66 | ||
| Inventory | (2,665) | (480) | ||
| Prepaid expenses and other assets | (1,009) | 225 | ||
| Accounts payable | 264 | (1,013) | ||
| Accrued expenses and contract liabilities | (294) | 819 | ||
| Operating lease payments | (79) | (102) | ||
| Net Cash Flows Provided by Operating Activities | 557 | 1,714 | ||
| Cash Flows - Investing Activities: | ||||
| Purchase of property and equipment | (1,846) | (254) | ||
| Proceeds from sale of patents | 5,000 | - | ||
| Net Cash Flows Provided by (Used in) Investing Activities | 3,154 | (254) | ||
| Cash Flows - Financing Activities: | ||||
| Proceeds from secured term loan | 23,000 | - | ||
| Proceeds from secured revolving credit facility | 655 | - | ||
| Payment of debt issuance costs | (371) | - | ||
| Proceeds from exercises of stock options | 359 | - | ||
| Payment of note payable | (27,747) | (2,175) | ||
| Proceeds from convertible notes payable | - | 1,300 | ||
| Proceeds from promissory note payable, related party | - | 500 | ||
| Proceeds from factoring, net | - | 449 | ||
| Payments of principal on finance lease and extinguishment of lease liability | (242) | (193) | ||
| Net Cash Flows Used in Financing Activities | (4,346) | (119) | ||
| Effect of Exchange Rates on Cash | - | 121 | ||
| --- | --- | --- | --- | --- |
| Net Change in Cash During Period | (635) | 1,462 | ||
| Cash at Beginning of Period | 10,237 | 1,797 | ||
| Cash at End of Period | $ | 9,602 | $ | 3,259 |
| Supplemental Information: | ||||
| Cash paid for interest | $ | 3,291 | $ | 3,189 |
| Non-cash Investing and Financing Activities: | ||||
| Capitalize interest into senior secured debt | 549 | 3,850 | ||
| Shares granted in lieu of board of director fees | 77 | - | ||
| Stock options granted in lieu of cash bonus | 117 | - | ||
| Right-of-use assets obtained in exchange for lease liabilities | 430 | - | ||
| Lease liabilities reduced upon lease modification | 99 | - | ||
| RSUs granted in exchange for services | 10 | - | ||
| Warrants issued in conjunction with convertible promissory notes | - | 3,633 | ||
| Conversion of asset-backed secured promissory notes to convertible promissory notes | - | 4,584 | ||
| Shares issued for settlement of debt | - | 1,412 | ||
| Write off deferred merger costs | - | 1,226 |