SANUWAVE Health, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company achieved revenues of $9.36 million for the three months ended September 30, 2024, marking an 89% increase from $4.95 million in the same period of 2023. For the nine months ended September 30, 2024, revenues reached $22.31 million, a 66% increase compared to $13.40 million in the prior year. The gross margin for the quarter was $7.07 million, representing 76% of revenue, up from 71% in the previous year.

Operating income for the third quarter of 2024 was reported at $1.95 million, a substantial improvement from an operating loss of $531,000 in the same quarter of 2023. However, the company recorded a net loss of $20.66 million for the three months ended September 30, 2024, which is an improvement from a net loss of $23.70 million in the same period of 2023. For the nine-month period, the net loss was $18.62 million, significantly reduced from $44.04 million in the previous year.

The company’s cash and cash equivalents increased to $3.26 million as of September 30, 2024, compared to $1.80 million at the end of 2023. Total current assets rose slightly to $9.90 million, while total liabilities surged to $82.11 million from $65.59 million at the end of 2023, primarily due to an increase in senior secured debt, which is now in default, amounting to $24.43 million.

Strategically, SANUWAVE Health entered into a merger agreement in August 2023, which was later terminated in June 2024. The company also settled a compliance dispute with Celularity, resulting in a gain on extinguishment of debt of $5.3 million. Additionally, a private placement of approximately 1.3 million shares of common stock was executed in October 2024, generating gross proceeds of about $10.3 million.

The company faces substantial doubt regarding its ability to continue as a going concern, citing events of default on senior secured debt and a working capital deficit. Management plans to seek additional capital in 2024 through various means, including the conversion of outstanding warrants and issuance of common or preferred stock, although this may lead to significant dilution for existing shareholders.

As of September 30, 2024, SANUWAVE Health reported an accumulated deficit of $238.67 million and acknowledged ongoing material weaknesses in its internal controls over financial reporting.