PART I -- FINANCIAL INFORMATION 
         
ITEM 1. FINANCIAL STATEMENTS      
         
  SANUWAVE HEALTH, INC. AND SUBSIDIARIES 
  CONDENSED CONSOLIDATED BALANCE SHEETS 
  (UNAUDITED) 
  (In thousands, except share data) 
         
     June 30, 2023 December 31, 2022 
ASSETS 
Current Assets:      
 Cash   $332  $1,153  
 Restricted Cash   850   -  
 Accounts receivable, net of allowance of $1,214 and $1,037, respectively   2,818   4,029  
 Inventory    900   868  
 Prepaid expenses and other current assets   1,201   570  
Total Current Assets   6,101   6,620  
 Property, equipment and other, net   1,050   856  
 Intangible assets, net   4,786   5,137  
 Goodwill    7,260   7,260  
Total Non-current Assets   13,096   13,253  
Total Assets   $19,197  $19,873  
         
LIABILITIES 
Current Liabilities:      
 Senior secured debt, in default  $16,123  $14,416  
 Convertible promissory notes payable   17,712   16,713  
 Convertible promissory notes payable, related parties   8,346   7,409  
 Bridge notes advance   1,476   -  
 Accounts payable   4,859   4,400  
 Accrued expenses   6,351   8,512  
 Factoring liabilities   1,213   2,130  
 Warrant liability   14,410   1,416  
 Accrued interest   6,174   4,052  
 Accrued interest, related parties   1,438   788  
 Current portion of contract liabilities   67   60  
 Other    1,108   291  
Total Current Liabilities   79,277   60,187  
Non-current Liabilities      
 Lease liabilities   515   438  
 Contract liabilities   215   230  
 Deferred tax liability   28   28  
Total Non-currrent Liabilities   758   696  
Total Liabilities  $80,035  $60,883  
         
Commitments and Contingencies (Footnote 13)      
         
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   $-  $-  
 no shares issued and outstanding at June 30, 2023 and December 31, 2022     
Common Stock, par value $0.001, 2,500,000,000 shares authorized; 561,637,651 and 548,737,651   
 issued and outstanding at June 30, 2023 December 31, 2022, respectively  562   549  
Additional paid-in capital   153,264   152,750  
Accumulated deficit   (214,584)  (194,242) 
Accumulated other comprehensive loss   (80)  (67) 
Total Stockholders' Deficit   (60,838)  (41,010) 
Total Liabilities and Stockholders' Deficit  $19,197  $19,873  
         
The accompanying notes to condensed consolidated financial statement are an integral part of these financial statements. 
         


SANUWAVE HEALTH, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME
(UNAUDITED)
(In thousands, except share data)
           
    Three Months Ended June 30, Six Months Ended June 30,
     2023   2022   2023   2022 
Revenue  $4,675  $3,882  $8,450  $7,077 
Cost of Revenues  1,202   1,096   2,464   1,986 
Gross Margin   3,473   2,786   5,986   5,091 
           
Operating Expenses:        
 General and administrative  1,238   3,781   3,997   5,986 
 Selling and marketing  978   1,672   2,390   3,387 
 Research and development  139   171   270   337 
 Depreciation and amortization  187   210   376   386 
Total Operating Expenses  2,542   5,834   7,033   10,096 
           
Operating Income/(Loss)  931   (3,048)  (1,047)  (5,005)
           
Other Income (Expense):        
 Interest expense  (3,706)  (2,903)  (7,218)  (6,040)
 Interest expense, related party  (675)  (56)  (1,441)  (112)
 Change in fair value of derivative liabilities (3,821)  7,861   (10,618)  11,343 
 Loss on issuance of debt  -   -   -   (3,434)
 Loss on extinguishment of debt  -   (211)  -   (211)
 Other (expense) income  9   1   (18)  2 
Total Other (Expense)/Inocme  (8,193)  4,692   (19,295)  1,548 
           
Net (Loss)/Income before Income Taxes  (7,262)  1,644   (20,342)  (3,457)
           
Provision for Income Taxes  -   -   -   - 
           
Net (Loss)/Income  (7,262)  1,644   (20,342)  (3,457)
           
Other Comprehensive Loss        
 Foreign currency translation adjustments  (9)  -   (13)  - 
           
Total Comprehensive (Loss)/Income $(7,271) $1,644  $(20,355) $(3,457)
           
(Loss) income per Share:        
 Basic  $(0.01) $-  $(0.04) $(0.01)
 Diluted  $(0.01) $-  $(0.04) $(0.01)
Weighted average shares outstanding        
 Basic   582,328,811   538,560,051   579,178,811   532,589,825 
 Diluted   582,328,811   871,984,091   579,178,811   532,589,825 
           
The accompanying notes to condensed consolidated financial
statements are an integral part of these financial statements.
           


 SANUWAVE HEALTH, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT
 (UNAUDITED)
 (In thousands, except share data)
               
Three Months Ended June 30, 2023
    Common Stock        
    Number of       Accumulated 
    Shares       Other  
    Issued and   Additional Paid- Accumulated Comprehensive
    Outstanding Par Value in Capital Deficit Loss Total
               
Balances as of March 31, 2023  555,637,651 $556 $153,046 $(207,322) $(71) $(53,791)
 Shares issued for services  6,000,000  6  218  -     224 
 Net loss  -  -- -  (7,262)- -   (7,262)
 Foreign currency translation adjustment -  -  -  -   (9)  (9)
               
Balances as of June 30, 2023  561,637,651 $562 $153,264 $(214,584) $(80) $(60,838)
               
Three Months Ended June 30, 2022
    Common Stock        
    Number of       Accumulated 
    Shares       Other  
    Issued and   Additional Paid- Accumulated Comprehensive
    Outstanding Par Value in Capital Deficit Loss Total
               
Balances as of March 31, 2022  517,195,705 $517 $150,533 $(189,050) $(67) $(38,067)
 Shares issued for services  12,097,500  12  876  -   -   888 
 Net Income  -  -- -  1,644 - -   1,644 
 Foreign currency translation adjustment -  -  -  -     - 
               
Balances as of June 30, 2022  529,293,205 $529 $151,409 $(187,406) $(67) $(35,535)
               
 The accompanying notes to condensed consolidated financial
 statements are an integral part of these financial statements.
               


 SANUWAVE HEALTH, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT
 (UNAUDITED)
 (In thousands, except share data)
              
Six Months Ended June 30, 2023
   Common Stock        
   Number of       Accumulated  
   Shares       Other  
   Issued and   Additional Paid- Accumulated Comprehensive 
   Outstanding Par Value in Capital Deficit Loss Total
              
Balances as of December 31, 2022 548,737,651 $549 $152,750 $(194,242) $(67) $(41,010)
 Shares issued for services 12,900,000  13  514  -   -   527 
 Net loss -  -  -  (20,342)  -   (20,342)
 Foreign currency translation adjustment-  -  -  -   (13)  (13)
              
Balances as of June 30, 2023 561,637,651 $562 $153,264 $(214,584) $(80) $(60,838)
              
Six Months Ended June 30, 2022
   Common Stock        
   Number of       Accumulated  
   Shares       Other  
   Issued and   Additional Paid- Accumulated Comprehensive 
   Outstanding Par Value in Capital Deficit Loss Total
              
Balances as of December 31, 2021 481,619,621 $482 $144,582 $(183,949) $(73) $(38,958)
 Cashless warrant exercise 14,000,000  14  2,152  -   -   2,166 
 Warrant exercise 909,091  1  99  -   -   100 
 Shares issued in conjunction with Note Payable 20,666,993  20  3,700  -   -   3,720 
 Shsares issued for services 12,097,500  12  876  -   -   888 
 Net loss -  -  -  (3,457)  -   (3,457)
 Foreign currency translation adjustment-  -  -  -   6   6 
              
Balances as of June 30, 2022 529,293,205 $529 $151,409 $(187,406) $(67) $(35,535)
              
 The accompanying notes to condensed consolidated financial
 statements are an integral part of these financial statements.
              


 SANUWAVE HEALTH, INC. AND SUBSIDIARIES 
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
 (UNAUDITED) 
 (In thousands) 
        
    Six Months Ended June 30, 
     2023   2022  
Cash Flows - Operating Acivities:      
Net loss  $(20,342) $(3,457) 
  Adjustments to reconcile net loss to net cash used by operating activities   
 Depreciation and amortization   515   446  
 Bad debt expense   313   52  
 Shares issued for services   224   888  
 Change in fair value of derivative liabilities   10,618   (11,343) 
 Loss on extinguishment of debt   -   211  
 Loss on issuance of debt   -   3,434  
 Amortization of debt issuance costs and original issue discount 3,955   1,304  
 Accrued interest   3,606   1,327  
 Changes in operating assets and liabilities      
      Accounts receivable - trade   898   733  
      Inventory   (31)  115  
      Prepaid expenses and other assets   (336)  (27) 
      Accounts payable   718   (486) 
      Accrued expenses   (1,337)  1,710  
      Contract liabilties   (16)  (108) 
Net Cash Used in Operating Activities   (1,215)  (5,201) 
        
Cash Flows - Investing Activities      
 Proceeds from sale of property and equipment   -   948  
 Purchase of property and equipment   (169)  -  
Net Cash Flows (Used in)/Provided by Investing Activities   (169)  948  
        
Cash Flows - Financing Activities      
 Proceeds from senior promissory notes   -   2,940  
 Proceeds from convertible promissory notes payable   1,202   -  
 Proceeds from bridge notes advance   1,476   2,130  
 Payments to factoring agent, net   (1,167)  55  
 Proceeds from warrant exercises   -   100  
 Payments of principal on finance leases   (85)  (121) 
Net Cash Flows Provided by Financing Activities   1,426   5,104  
        
Effect of Exchange Rates on Cash   (13)  14  
        
Net Change in Cash and Restricted Cash During Period   29   865  
        
Cash and Restricted Cash at Beginning of Period   1,153   619  
Cash and Restricted Cash at End of Period  $1,182  $1,484  
        
Supplemental Information:      
 Cash paid for interest  $908  $2,045  
        
Non-cash Investing and Financing Activities:      
 Warrants issued in conjunction with senior secured promissory note payable and convertible promissory notes payable $570  $2,654  
 Common shares issued for advisory shares   302   -  
 Embedded conversion feature on convertible promissory notess payable   157    
 Reclassification of warrant liability due to cashless warrant exercise   -   2,167  
 Common shares issued in conjunction with senior secured promissory note payable  -   3,720  
        
        
 The accompanying notes to condensed consolidated financial statements are an integral part of these financial statements.