SANUWAVE Health Inc(US:SNWV)2025-11-06 21:52Financial Performance - Revenue for Q3 2025 was $11,451,000, representing a 22.1% increase from $9,360,000 in Q3 2024[15] - Gross margin improved to $8,925,000 in Q3 2025, up from $7,067,000 in Q3 2024, indicating a stronger profitability[15] - Operating income for the nine months ended September 30, 2025, was $4,330,000, compared to $2,895,000 for the same period in 2024, reflecting a 49.5% increase[15] - Net income for Q3 2025 was $10,325,000, a significant recovery from a net loss of $20,657,000 in Q3 2024[15] - For the nine months ended September 30, 2025, the company reported a net income of $5,704,000 compared to a net loss of $18,624,000 in the same period of 2024, indicating a significant turnaround[23] - Total revenue for the three months ended September 30, 2025, was $11.451 million, representing a 22.9% increase from $9.360 million in the same period of 2024[85] - Revenue for the three months ended September 30, 2025, was $11.5 million, a 22% increase compared to $9.4 million in the same period of 2024[114] - For the nine months ended September 30, 2025, revenue totaled $31.0 million, a 39% increase from $22.3 million in the same period of 2024[114] - Operating income for the nine months ended September 30, 2025, was $4.3 million, an improvement of $1.4 million compared to the same period in 2024[116] - The company had a gross margin of $8.9 million for the three months ended September 30, 2025, compared to $7.1 million for the same period in 2024[112] - General and administrative expenses for the three months ended September 30, 2025, were $4.8 million, compared to $2.5 million in the same period of 2024[112] Assets and Liabilities - Total current assets increased to $22,633,000 as of September 30, 2025, compared to $18,397,000 at the end of 2024, marking a 22.3% growth[13] - Total liabilities decreased to $38,530,000 as of September 30, 2025, down from $42,836,000 at the end of 2024, indicating improved financial health[13] - Cash and cash equivalents were $9,602,000 as of September 30, 2025, slightly down from $10,237,000 at the end of 2024[13] - The company reported a total stockholders' deficit of $2,931,000 as of September 30, 2025, an improvement from a deficit of $12,717,000 at the end of 2024[14] - Cash at the end of the period was $9,602,000, up from $3,259,000 at the end of the same period in 2024[25] - The allowance for credit losses increased to $1,259,000 as of September 30, 2025, from $1,056,000 a year earlier, with a provision for credit losses of $153,000 compared to $67,000 in the prior year[54] Cash Flow and Financing Activities - Operating cash flows provided by operating activities were $557,000, a decrease from $1,714,000 in the prior year[23] - The company reported a net cash flow used in financing activities of $4,346,000, compared to $119,000 in the prior year[23] - Cash flows from operating activities for the nine months ended September 30, 2025, were impacted by non-cash charges totaling $3.5 million related to stock-based compensation[141] - Cash provided by investing activities for the same period was $3.2 million, primarily from a patent purchase agreement of $5 million[143] - Cash used in financing activities for the nine months ended September 30, 2025, totaled $4.3 million, mainly for paying off existing debt[145] Debt and Equity - The company executed a comprehensive debt refinancing, extending the maturity of principal debt obligations and providing additional liquidity through a secured revolving credit facility[34] - The Company entered into a new secured term loan of $23 million and a $5 million revolving credit facility, with interest rates based on SOFR plus a margin of 3.50% or CBFR plus a margin of 2.50%[63] - The company recognized a gain on the sale of patents amounting to $5,000,000 during the nine months ended September 30, 2025[23] - The company incurred stock-based compensation expenses of $3,513,000 for the nine months ended September 30, 2025, compared to no such expenses in the prior year[23] - The company recognized a $5.0 million gain on the sale of patents within Other Income for the three and nine months ended September 30, 2025[105] Operational Highlights - Research and development expenses increased to $747,000 for the nine months ended September 30, 2025, compared to $519,000 for the same period in 2024, reflecting a focus on innovation[15] - The quantity of UltraMIST systems sold increased by 54% in the nine months ended September 30, 2025, compared to the same period of 2024[124] - Consumables and parts revenue for the nine months ended September 30, 2025, was $19.806 million, up 33.3% from $14.879 million in the prior year[85] - Revenue for the nine months ended September 30, 2025, was $31.0 million, a 39% increase from $22.3 million in the same period of 2024, driven by a 28% increase in UltraMIST disposables sold[124] Corporate Governance and Compliance - The company is committed to addressing material weaknesses in internal controls and has engaged CliftonLarsonAllen LLP for valuation assistance[157] - The company plans to enhance internal controls and has hired a Director of Internal Audit to oversee these efforts[158] - The company has filed various certificates of amendment to its Articles of Incorporation, with the most recent effective as of October 18, 2024[171] - The ongoing amendments and agreements suggest a proactive approach to corporate governance and strategic partnerships within the healthcare sector[170] - The company has incorporated XBRL (eXtensible Business Reporting Language) for its financial reporting, enhancing transparency and accessibility of financial data[171]