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.