Full Press Release Details
SANUWAVE HEALTH, INC.
CONFERENCE CALL TO DISCUSS FOURTH QUARTER AND FULL FISCAL YEAR
FINANCIAL RESULTS AND PROVIDE A BUSINESS UPDATE
TUESDAY, MARCH 31, 2020
9:00 a.m. Eastern Time
and gentlemen good day, and thank you all for joining this SANUWAVE
2019 Annual Earnings Conference. As a reminder, today's meeting is
being recorded and all phone participants are in a listen-only mode
but after today's prepared remarks, you will have the opportunity
to ask questions. And now to get us started with opening remarks
and introductions I'm pleased to turn the floor over to Lisa
Sundstrom, welcome Lisa.
Lisa Sundstrom Chief Financial Officer
you and good morning. We appreciate your interest in SANUWAVE and
in today's call. SANUWAVE will provide an update on our most recent
activities as well as our 2019 annual financial results. Our annual
form on form 10-K was filed with the SEC on Monday, March 30, 2020.
If you would like to be added to the Company's distribution list,
please call SANUWAVE at 770-419-7525 or go to the Investor
Relations section of our website at www.sanuwave.com.
we begin, I would like to caution that comments made during this
conference call by management will contain certain forward-looking
statements that involve risks and uncertainties regarding the
operations and future results of SANUWAVE. We encourage you to
review the Company's filings with the Securities and Exchange
Commission, including without limitation our Forms 10-K and 10-Q,
which identify specific factors that may cause actual events or
results to differ materially from those described in the
forward-looking statements.
the content of this conference call contains time-sensitive
information that is accurate only as of the date of the live
broadcast, March 31, 2020. SANUWAVE undertakes no obligation to
revise or update any statements to reflect events or circumstances
after the date of this conference call.
now like to turn the call over to our Chairman of the Board, Kevin
Kevin Richardson Chairman and Chief Executive
you, Lisa. Normally SANUWAVE uses this year end call to reflect on
our milestones achieved during the prior year and lay out our goals
for the coming year. It is important to lay out these goals to
establish a pathway to achieve our ultimate mission of having a
dermaPACE System anywhere and everywhere a wound is
these are not normal times, the COVID-19 pandemic has altered the
landscape in which we operate and the priorities of many
organizations including SANUWAVE must be altered as well. Our top
priority is the safety of our organization, but also making sure we
can deliver our services and products to those in need, especially
in these trying times.
there is change there's also opportunity and we will discuss how
SANUWAVE has positioned itself to help deal with the COVID-19
pandemic. I will briefly review the highlights from the fourth
quarter then turn it over to Lisa to walk through the financials.
Then I will conclude, with how we are currently positioned to what
are we doing to take advantage of opportunities as they arrive
during this crisis to help alleviate crisis. During the fourth
quarter and in early 2020, we have had some major highlights, which
we would like to share.
added Dr. Tom Price to the Board of Directors, as many of you know,
if you want to Wikipedia him, you can. Tom was Secretary of Health
and Human Services, HHS, after spending many years on Capitol Hill
and driving much of the positive changes we see in DC. Tom has
already made major impacts at the board level and has helped shape
some of the critical decisions, we have made regarding operations
in pursuing opportunities during this pandemic. We are very
fortunate to have him as a board member.
we completed the joint venture in Brazil, we received $500,000
toward the end of 2019, the money is non-refundable, the joint
venture contract has been signed. Unfortunately, under the revenue
recognition policies that FASB has in place, we thought we could
but we cannot recognize this revenue. We will eventually recognize
this revenue, but it must be spread out over the term of the joint
venture. Although, this makes absolutely zero sense in a way to
deal with something structured the way it is or how a normal
business minded person thinks, it did have an impact on our fourth
quarter, as we expected to show $500,000 of revenue given it had
come in as a signed contract and was non-refundable and other
milestones have been met. Aside from the accounting nuances, we are
very happy with our partners in the region. We have met with a few
of the key opinion leaders and we will be launching in earnest in
Brazil later this year after we receive ANVISA, which is their
equivalent of the FDA. 2021 should shape up to be a very strong
year in Brazil post ANVISA.
In other international news during the year were the additions of
new countries and partnerships, one that stands out is Oman, which
although a small country, they are at the forefront in the Gulf
Coast countries in treating DFUs and we believe this will be the
launch pad for the region when things return to
distribution partners lined up and ready to begin distributing our
product in the area once things are ready to go in 2020. If you've
not seen some of the poster results from the use in Oman, please
visit our website; the device is having an amazing impact on many
lives in that region. This region is probably showing the greatest
growth in diabetic foot ulcers anywhere in the world and will be at
the forefront in treating them.
highlight in the quarter, we were also successful in raising $5
million in capital in two tranches which closed in December and
January. This was led by four institutional investors and this
funding allows SANUWAVE to path to achieve break even and
profitability later this year, we will discuss timing of this later
in the call but this event will still happen this year and we were
very fortunate to be a company that had prepared with proper