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)
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May 10, 2024
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SANUWAVE Health, Inc.
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(Exact name of registrant as specified in its 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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(IRS Employer Identification No.)
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11495 Valley View Road, Eden Prairie, Minnesota
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55344
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code
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(770) 419-7525
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N/A
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(Former name or former address, if changed since last report)
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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):
☐
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the 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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N/A
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N/A
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N/A
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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 10, 2024, Sanuwave Health, Inc., a Nevada corporation (the “Company”), issued a press release announcing its financial results for the first
quarter ended March 31, 2024. As previously announced, a business update via conference call will occur on May 10, 2024 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.
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Exhibit
No.
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Description
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| |
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Press Release dated May 10, 2024
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104
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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.
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SANUWAVE HEALTH, INC.
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| |
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Dated: May 10, 2024
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By:
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/s/ Peter Sorensen
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Name:
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Peter Sorensen
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| |
Title:
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Chief Financial Officer
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Exhibit 99.1
SANUWAVE Announces Q1 FY2024 Financial Results
Q1 2024 revenues were $5.8 million, up 53% from Q1 2023
Q1 2024 gross margin was 73%, up 600bp from Q1 2023
Operating loss was $1.1 million for Q1 2024 compared to $2.0 million for Q1 2023
Company provides guidance for revenue growth of 45-55% for Q2 2024 versus Q2 2023 and reiterates revenue growth guidance of 50% for FY 2024 compared
to FY 2023
EDEN PRAIRIE, MN, May 10, 2024 (GLOBE NEWSWIRE) -- via NewMediaWire -- Sanuwave Health, Inc. (the "Company" or "Sanuwave”) (OTCQB:
SNWV), a leading provider of next-generation FDA-approved wound care products, is pleased to provide its financial
results for the three months ended March 31, 2024.
Q1 2024 ended March 31, 2024
|
■ |
Revenue for the three months ended March 31, 2024, totaled $5.8 million, an increase of 53%, as compared to $3.8 million for the same period of 2023. This growth is within the previous guidance for
a 45 – 55% increase.
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|
■ |
43 UltraMist® systems were sold in Q1 2024, up from 28 in Q1 2023, and down from 79 in Q4 2023.
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|
■ |
UltraMist® consumables revenue increased by 64% to $4.1 million (71% of revenues) in Q1 2024, versus $2.5 million for the same quarter last year. UltraMIST systems and consumables remained the
primary revenue growth driver and continued to represent in excess of 90% of SANUWAVE’s overall revenues in Q1 2024.
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|
■ |
Gross margin as a percentage of revenue amounted to 73% for the three months ended March 31, 2024, vs. 67% for the same period last year, driven by the increase in average selling price of UltraMist®
and stabilization of cost of sales in 2024.
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|
■ |
For the three months ended March 31, 2024, operating loss totaled $1.1 million, an improvement of $0.9 million compared to Q1 2023 as a result of the Company’s continued efforts to drive profitable
growth and manage expenses.
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|
■ |
Net loss for the first quarter of 2024 was $4.5 million, driven predominantly by the change in the fair value of derivative liabilities, and interest expense.
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|
■ |
Adjusted EBITDA 1 loss for the three months ended March 31, 2024, was $59 thousand versus an Adjusted EBITDA loss of $1.8 million for the same period last year, an improvement of $1.7
million.
|
1 This is a non-GAAP financial measure. Refer to “Non-GAAP Financial Measures” and the reconciliations in this release for further
information.
“The first quarter showed an acceleration in year over year revenue growth rate for Sanuwave as we start to see the results of all the hard work put in on manufacturing, operations, and
increasingly sales,” said Morgan Frank, CEO. “This was the best first quarter in Company history by a wide margin, and Adjusted EBITDA remained near break-even level despite some meaningful non-recurring costs in the quarter. Like much of the life
science and medical device space, the first quarter is a seasonally slower time for Sanuwave, but this did not stop us from accelerating our growth rate and setting the groundwork to build and sustain this higher growth. We hired four new
salespeople in the quarter and are looking to hire more going forward. We aim for 2024 to be the breakout year for Sanuwave.”
Financial Outlook
The Company forecasts Q2 2024 revenue to rise 45-55% vs Q2 2023 and for gross margin as a percentage of revenue to remain in the mid 70s.
Our merger with SEPA remains ongoing and active. We’re continuing to work toward finalizing the exchange listing and the Company believes it sees a path to closing this transaction in May.
As previously announced, a business update will occur via conference call on May 10, 2024 at 8:30 a.m. EST. Materials for the conference call are included on the Company website at
http://www.sanuwave.com/investors
Telephone access to the call will be available by dialing the following numbers:
Participant Listening: 1-800-245-3047 or 1-203-518-9765
OR click the link for instant telephone access to the event.
https://viavid.webcasts.com/starthere.jsp?ei=1665712&tp_key=5ceebf04ab
A replay will be made available through June 3, 2024:
Toll-Free: 1-844-512-2921 or 1-412-317-6671
Replay Access ID: 1155590
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 helps 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.) (“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 loss as a measure of
financial performance or any other performance measure derived in accordance with 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 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 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 GAAP. Some of these limitations are that EBITDA and Adjusted EBITDA:
|
• |
Do not reflect every expenditure, future requirements for capital expenditures or contractual commitments.
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|
• |
Do not reflect all changes in our working capital needs.
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|
• |
Do not reflect interest expense, or the amount necessary to service our outstanding debt.
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As presented in the 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 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 constraints, plans for future business development activities and the planned merger with SEP Acquisition Corp.
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 supply chain and production constraints, regulatory oversight, the Company’s ability to manage its capital resource
issues, competition, the Company’s ability to consummate the proposed business combination with SEP Acquisition Corp. 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.
Contact: investors@sanuwave.com
SELECTED FINANCIAL DATA
FOR THE QUARTERS ENDED MARCH 31, 2024 AND 2023
| |
|
|
|
|
|
|
|
(in thousands)
|
|
2024
|
|
|
2023
|
|
| |
|
|
|
|
|
|
|
Revenue
|
|
$
|
5,786
|
|
|
$
|
3,775
|
|
|
Cost of Revenues
|
|
|
1,584
|
|
|
|
1,262
|
|
| |
|
|
|
|
|
|
|
|
|
Gross Margin
|
|
|
4,202
|
|
|
|
2,513
|
|
|
Gross Margin %
|
|
|
72.6
|
%
|
|
|
66.6
|
%
|
| |
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
5,252
|
|
|
|
4,491
|
|
|
Operating Loss
|
|
$
|
(1,050
|
)
|
|
$
|
(1,978
|
)
|
| |
|
|
|
|
|
|
|
|
|
Total other expense
|
|
|
(3,478
|
)
|
|
|
(11,102
|
)
|
| |
|
|
|
|
|
|
|
|
|
Net Loss
|
|
$
|
(4,528
|
)
|
|
$
|
(13,080
|
)
|
NON-GAAP ADJUSTED EBITDA
FOR THE QUARTERS ENDED MARCH 31, 2024 AND 2023
|
(in thousands)
|
|
2024
|
|
|
2023
|
|
| |
|
|
|
|
|
|
|
Net loss
|
|
$
|
(4,528
|
)
|
|
$
|
(13,084
|
)
|
|
Non-GAAP Adjustments:
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
3,560
|
|
|
|
4,278
|
|
|
Depreciation and amortization
|
|
|
218
|
|
|
|
189
|
|
|
EBITDA
|
|
|
(750
|
)
|
|
|
(8,617
|
)
|
|
Non-GAAP Adjustments for Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
Change in fair value of derivative liabilities
|
|
|
2,501
|
|
|
|
6,797
|
|
|
Other non-cash or non-recurring charges:
|
|
|
|
|
|
|
|
|
|
Loss on extinguishment of debt
|
|
|
105
|
|
|
|
-
|
|
|
Severance agreement and legal settlement
|
|
|
585
|
|
|
|
-
|
|
|
License and option agreement
|
|
|
(2,500
|
)
|
|
|
-
|
|
|
Adjusted EBITDA
|
|
$
|
(59
|
)
|
|
$
|
(1,820
|
)
|
PART I - FINANCIAL INFORMATION
SANUWAVE HEALTH, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands, except share data)
|
|
March 31, 2024
|
|
|
December 31, 2023
|
|
|
ASSETS
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
Cash
|
|
$
|
2,936
|
|
|
$
|
1,797
|
|
|
Accounts receivable, net of allowance of $1,237 and $1,237, respectively
|
|
|
3,008
|
|
|
|
3,314
|
|
|
Inventory
|
|
|
2,461
|
|
|
|
2,951
|
|
|
Prepaid expenses and other current assets
|
|
|
2,426
|
|
|
|
1,722
|
|
|
Total Current Assets
|
|
|
10,831
|
|
|
|
9,784
|
|
|
Non-Current Assets:
|
|
|
|
|
|
|
|
|
|
Property, equipment and right of use assets, net
|
|
|
975
|
|
|
|
938
|
|
|
Intangible assets, net
|
|
|
4,258
|
|
|
|
4,434
|
|
|
Goodwill
|
|
|
7,260
|
|
|
|
7,260
|
|
|
Total Non-Current Assets
|
|
|
12,493
|
|
|
|
12,632
|
|
| |
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
23,324
|
|
|
$
|
22,416
|
|
| |
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
Senior secured debt, in default
|
|
$
|
18,910
|
|
|
$
|
18,278
|
|
|
Convertible promissory notes payable
|
|
|
7,477
|
|
|
|
5,404
|
|
|
Convertible promissory notes payable, related parties
|
|
|
2,527
|
|
|
|
1,705
|
|
|
Asset-backed secured promissory notes payable
|
|
|
-
|
|
|
|
3,117
|
|
|
Asset-backed secured promissory notes payable, related parties
|
|
|
-
|
|
|
|
1,458
|
|
|
Accounts payable
|
|
|
5,062
|
|
|
|
5,705
|
|
|
Accrued expenses
|
|
|
6,849
|
|
|
|
5,999
|
|
|
Factoring liabilities
|
|
|
1,561
|
|
|
|
1,490
|
|
|
Warrant liability
|
|
|
19,818
|
|
|
|
14,447
|
|
|
Accrued interest
|
|
|
6,118
|
|
|
|
5,444
|
|
|
Accrued interest, related parties
|
|
|
786
|
|
|
|
669
|
|
|
Current portion of contract liabilities
|
|
|
107
|
|
|
|
92
|
|
|
Other
|
|
|
969
|
|
|
|
947
|
|
|
Total Current Liabilities
|
|
|
70,184
|
|
|
|
64,755
|
|
|
Non-Current Liabilities:
|
|
|
|
|
|
|
|
|
|
Lease liabilities
|
|
|
395
|
|
|
|
492
|
|
|
Contract liabilities
|
|
|
340
|
|
|
|
347
|
|
|
Total Non-Current Liabilities
|
|
|
735
|
|
|
|
839
|
|
| |
|
|
|
|
|
|
|
|
|
Total Liabilities
|
|
$
|
70,919
|
|
|
$
|
65,594
|
|
| |
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' DEFICIT
|
|
|
Preferred stock, par value $0.001, 5,000,000 shares authorized, 6,175 Series A, 293 Series B, 90 Series C, and 8 Series D designated
shares, respectively; no shares issues and outstanding at 2023 and 2022
|
|
$
|
-
|
|
|
$
|
-
|
|
|
Common stock, par value $0.001, 2,500,000,000 shares authorized, 1,140,559,527 issued and outstanding at March 31, 2024 and December 31,
2023, respectively
|
|
|
1,140
|
|
|
|
1,140
|
|
|
Additional paid-in capital
|
|
|
175,842
|
|
|
|
175,842
|
|
|
Accumulated deficit
|
|
|
(224,577
|
)
|
|
|
(220,049
|
)
|
|
Accumulated other comprehensive loss
|
|
|
-
|
|
|
|
(111
|
)
|
|
Total Stockholders' Deficit
|
|
|
(47,595
|
)
|
|
|
(43,178
|
)
|
|
Total Liabilities and Stockholders' Deficit
|
|
$
|
23,324
|
|
|
$
|
22,416
|
|
SAUWAVE HEALTH, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
| |
|
Three Months Ended March 31,
|
|
|
(In thousands, except share and per share data)
|
|
2024
|
|
|
2023
|
|
| |
|
|
|
|
|
|
|
Revenue
|
|
$
|
5,786
|
|
|
$
|
3,775
|
|
|
Cost of revenues
|
|
|
1,584
|
|
|
|
1,262
|
|
| |
|
|
|
|
|
|
|
|
|
Gross Margin
|
|
|
4,202
|
|
|
|
2,513
|
|
| |
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
General and administrative
|
|
|
3,675
|
|
|
|
2,759
|
|
|
Selling and marketing
|
|
|
1,232
|
|
|
|
1,412
|
|
|
Research and development
|
|
|
163
|
|
|
|
131
|
|
|
Depreciation and amortization
|
|
|
182
|
|
|
|
189
|
|
|
Total Operating Expenses
|
|
|
5,252
|
|
|
|
4,491
|
|
| |
|
|
|
|
|
|
|
|
|
Operating Loss
|
|
|
(1,050
|
)
|
|
|
(1,978
|
)
|
| |
|
|
|
|
|
|
|
|
|
Other Income (Expense)
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(3,237
|
)
|
|
|
(3,512
|
)
|
|
Interest expense, related party
|
|
|
(323
|
)
|
|
|
(766
|
)
|
|
Loss on extinguishment of debt
|
|
|
(105
|
)
|
|
|
-
|
|
|
Change in fair value of derivative liabilities
|
|
|
(2,501
|
)
|
|
|
(6,797
|
)
|
|
Other expense
|
|
|
(102
|
)
|
|
|
(27
|
)
|
|
Other income
|
|
|
2,790
|
|
|
|
-
|
|
|
Total Other Expense
|
|
|
(3,478
|
)
|
|
|
(11,102
|
)
|
| |
|
|
|
|
|
|
|
|
|
Net Loss
|
|
$
|
(4,528
|
)
|
|
$
|
(13,080
|
)
|
| |
|
|
|
|
|
|
|
|
|
Other Comprehensive Loss
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments
|
|
|
111
|
|
|
|
(4
|
)
|
|
Total Comprehensive Loss
|
|
$
|
(4,417
|
)
|
|
$
|
(13,084
|
)
|
| |
|
|
|
|
|
|
|
|
|
Loss per Share:
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic and diluted
|
|
$
|
-
|
|
|
$
|
(0.02
|
)
|
|
Weighted average shares outstanding, basic and diluted
|
|
|
1,162,250,687
|
|
|
|
575,028,811
|
|
SANUWAVE HEALTH, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT
|
(In thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Shares Issued and
Outstanding
|
|
|
Par Value
|
|
|
Additional Paid-in Capital
|
|
|
Accumulated Deficit
|
|
|
Accumulated Other Comprehensive Loss
|
|
|
Total
|
|
|
Balances as of December 31, 2023
|
|
|
1,140,559,527
|
|
|
$
|
1,140
|
|
|
$
|
175,842
|
|
|
$
|
(220,049
|
)
|
|
$
|
(111
|
)
|
|
$
|
(43,178
|
)
|
|
Net loss
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(4,528
|
)
|
|
|
-
|
|
|
|
(4,528
|
)
|
|
Foreign currency translation adjustment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
111
|
|
|
|
111
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of March 31, 2024
|
|
$
|
1,140,559,527
|
|
|
$
|
1,140
|
|
|
$
|
175,842
|
|
|
$
|
(224,577
|
)
|
|
$
|
-
|
|
|
$
|
(47,595
|
)
|
| |
|
Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Shares Issued and
Outstanding
|
|
|
Par Value
|
|
|
Additional Paid-in Capital
|
|
|
Accumulated Deficit
|
|
|
Accumulated Other Comprehensive Loss
|
|
|
Total
|
|
|
Balances as of December 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares issued for services
|
|
|
548,737,651
|
|
|
$
|
549
|
|
|
$
|
152,750
|
|
|
$
|
(194,242
|
)
|
|
$
|
(67
|
)
|
|
$
|
(41,010
|
)
|
|
Shares issued for settlement of debt and warrants
|
|
|
6,900,000
|
|
|
|
7
|
|
|
|
296
|
|
|
|
-
|
|
|
|
-
|
|
|
|
303
|
|
|
Net loss
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(13,080
|
)
|
|
|
-
|
|
|
|
(13,080
|
)
|
|
Foreign currency translation adjustment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(4
|
)
|
|
|
(4
|
)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of March 31, 2023
|
|
|
1,696,197,178
|
|
|
$
|
556
|
|
|
$
|
153,046
|
|
|
$
|
(207,322
|
)
|
|
$
|
(71
|
)
|
|
$
|
(53,791
|
)
|
SANUWAVE HEALTH, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| |
|
Three Months Ended March 31,
|
|
|
(In thousands)
|
|
2024
|
|
|
2023
|
|
| |
|
|
|
|
|
|
|
Cash Flows - Operating Activities:
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(4,528
|
)
|
|
$
|
(13,080
|
)
|
|
Adjustments to reconcile net loss to net cash used by operating activities
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
218
|
|
|
|
259
|
|
|
Bad debt expense
|
|
|
147
|
|
|
|
156
|
|
|
Loss on extinguishment of debt
|
|
|
105
|
|
|
|
-
|
|
|
Change in fair value of derivative liabilities
|
|
|
2,501
|
|
|
|
6,797
|
|
|
Amortization of debt issuance and debt discounts
|
|
|
1,553
|
|
|
|
1,931
|
|
|
Accrued interest
|
|
|
955
|
|
|
|
1,365
|
|
|
Changes in operating assets and liabilities
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
152
|
|
|
|
906
|
|
|
Inventory
|
|
|
490
|
|
|
|
(203
|
)
|
|
Prepaid expenses and other assets
|
|
|
192
|
|
|
|
195
|
|
|
Accounts payable
|
|
|
(643
|
)
|
|
|
864
|
|
|
Accrued expenses
|
|
|
(20
|
)
|
|
|
450
|
|
|
Contract liabilites
|
|
|
(22
|
)
|
|
|
(11
|
)
|
|
Net Cash Provided by/ (Used in) Operating Activities
|
|
|
1,100
|
|
|
|
(371
|
)
|
| |
|
|
|
|
|
|
|
|
|
Cash Flows - Investing Activities
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
(114
|
)
|
|
|
(18
|
)
|
|
Net Cash Flows Used In Investing Activities
|
|
|
(114
|
)
|
|
|
(18
|
)
|
| |
|
|
|
|
|
|
|
|
|
Cash Flows - Financing Activities
|
|
|
|
|
|
|
|
|
|
Proceeds from factoring
|
|
|
71
|
|
|
|
(610
|
)
|
|
Principal payments on finance leases
|
|
|
(29
|
)
|
|
|
(44
|
)
|
|
Net Cash Flows Provided by /(Used In) Financing Activities
|
|
|
42
|
|
|
|
(654
|
)
|
| |
|
|
|
|
|
|
|
|
|
Effect of Exchange Rates on Cash
|
|
|
111
|
|
|
|
(4
|
)
|
| |
|
|
|
|
|
|
|
|
|
Net Change in Cash During Period
|
|
|
1,139
|
|
|
|
(1,047
|
)
|
| |
|
|
|
|
|
|
|
|
|
Cash at Beginning of Period
|
|
|
1,797
|
|
|
|
1,153
|
|
|
Cash at End of Period
|
|
$
|
2,936
|
|
|
$
|
106
|
|
| |
|
|
|
|
|
|
|
|
|
Supplemental Information:
|
|
|
|
|
|
|
|
|
|
Cash paid for interest
|
|
$
|
971
|
|
|
$
|
908
|
|
|
Non-Cash Investing and Financing Activities:
|
|
|
|
|
|
|
|
|
|
Warrants issued in conjunction with senior secured promissory note payable and
|
|
|
|
|
|
|
|
|
|
convertible promissory notes payable
|
|
$
|
2,784
|
|
|
$
|
-
|
|
|
Conversion of asset-backed secured promissory notes to convertible promissory notes
|
|
|
2,584
|
|
|
|
-
|
|
|
Common shares issued for advisory shares
|
|
|
-
|
|
|
|
302
|
|