Electromedical Technologies Announces Financial and Operational Highlights for the Three and Nine Months Ended September 30, 2022
SCOTTSDALE, Ariz., Dec. 5, 2022 /PRNewswire/ -- Electromedical Technologies, Inc. (OTC-QB: EMED) ("Electromedical" or the "Company"), a pioneer in the development and production of bioelectronic devices designed to relieve chronic, intractable, and acute pain through frequency and electro-modulation, is pleased to provide its Financial and Operational Highlights for the three and nine months ended September 30, 2022.
Electromedical Founder and CEO, Matthew Wolfson, remarked, "Topline revenue growth of 24% over the June 2022 quarter and a sharply narrowed net loss so far this year highlight steady financial improvements, while we expand our sales and marketing infrastructure ahead of the expected 2023 launch of our new market leading flagship device, the WellnessPro Infinity™."
Highlights for the three and nine months ended Sep 30, 2022
- Strong net sales during the quarter totaling approximately $280,000, beating both Q1 and Q2 2022 sales. Third quarter sales increased 24% over Q2 2022 sales.
- Recorded second highest quarterly revenue figure since Q1 2020. Same period sales for Q3 2021 totaled approximately $301K.
- Net loss for the nine months ended Sep 30, 2022, of $2.64 million, a 60% improvement over net loss for the nine months ended Sep 30, 2021.
- Approximately $900K in net financing used to expedite development of the new WellnessPro Infinity™ Flagship Device.
- Increased distributors and clinics to drive wider market footprint and bolster sales volume.
- Finalized fixed cost investment to secure key components and avoid supply chain bottlenecks,
- Settled negotiations, factory ready for expanded production and negotiated more favorable pricing and terms from suppliers.
The Company also noted that selling, general and administrative expenses increased 23% during the quarter as compared to the quarter ended September 30, 2021. The increase is primarily due to increases in sales and marketing, payroll related, consulting and professional fees and other operating expenses, including the hiring of a new sales director, setting the stage for aggressive sales growth following the expected commercial launch of the WellnessPro Infinity™ device early next year.
"As we have said, the WellnessPro Infinity™ will set an entirely new standard in the Bioelectronics marketplace," noted Wolfson. "There's nothing like it on the market due to strong advances in overall capability, affordability, flexibility, ease of use, and a revolutionary doctor-patient interface. We believe this will be far and away the most advanced and most effective electrotherapy device to ever hit the market."
The NEW WellnessPro Infinity™ device features:
- One compact device encompassing ALL electrotherapy modalities, producing any frequency, any wave form (typical or atypical), and any level of modulation.
- Support for TENS, Microcurrent, IF, EMS, PEMF, CES, VNS, PNS, COLD Laser, POD Synchronization, IDNA™, Deep Pluse™, Cloud access and much more.
- Unprecedented accuracy.
- An ease of use that we believe is better than any electrotherapy device on the market.
- A New Doctor-Patient Portal for updates and personalized treatments.
The Company looks forward to continued onboarding of new sales representatives and clinics to expand and expedite the WellnessPro Infinity's™ market penetration. Trade shows will continue to represent a key component of this strategy. Another marketing strategy will be to reach out to past customers that have purchased approximately 10,000 + total legacy units over the last decade to offer them the opportunity to reorder the new and improved WellnessPro Infinity™. We expect our past customers will preorder new units which will result in significant projected income. The preorder campaign in advance of shipment will help to expedite cashflow for the Company and provide expected working capital for inventory and debt settlement.
Wolfson added, "We look forward to an exciting period ahead. Development of the Infinity device concluded on schedule and we are now in the homestretch before an expected commercial launch early in 2023. POD development is going as planned and we look forward to sharing progress in our upcoming press releases soon. Our goal is to go to market with the WellnessPro Infinity™ first, then release the POD upon FDA 510k clearance shortly after."
The Company has primarily utilized convertible note financing to support the growth of the business. These notes are all convertible at a fixed price as the Company was able to successfully settle all convertible notes and warrants that have variable discounts. Upon reaching its projected revenue targets for the new Wellness Pro Infinity next year, the Company expects to obtain substantial institutional financing and commence the steps needed to uplist to a major exchange.
The Company is in the process of refinancing the commercial building that it owns. The building is recorded as a fixed asset on the balance sheet with a cost of $875K and a corresponding mortgage liability of $526K as of September 30, 2022. However, the current appraised value of the building is over $1.5M, resulting in net equity of over $1M. The Company is in the process of negotiating a sale-leaseback of the property with favorable lease terms in order to possibly obtain over $1M in net cash after the transaction. The Company has a sufficient net loss carryforward that it expects that none of this gain will result in taxable income. Consequently, it expects to use the proceeds to retire convertible debt that has dilutive features and working growth capital.
About Electromedical Technologies
Headquartered in Scottsdale, Arizona, Electromedical Technologies, Inc. is a commercial stage, FDA cleared, bioelectronic medical device manufacturing company initially focused on the treatment of various chronic, acute, intractable, and post-operative pain conditions. Through University collaboration agreements, the Company is working to develop a comprehensive research program in defining the effects of electro-modulation on the human body. By studying the impacts of electrical fields in cell signaling and effects on virus assembly and immune responses, the Company's goal is to reduce pain and improve overall human wellbeing. The Company's current FDA cleared product indications are for chronic acute post traumatic and post-operative, intractable pain relief.
For more information, please visit www.electromedtech.com.
Note: Nonhuman preliminary studies that we are planning to start in the near future and their applications are not related to our current product in any way and are currently not cleared in the US.
Safe Harbor Statement
This release contains forward-looking statements that are based upon current expectations or beliefs, as well as a number of assumptions about future events. Although we believe that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, we can give no assurance or guarantee that such expectations and assumptions will prove to have been correct. Forward-looking statements are generally identifiable by the use of words like "may," "will," "should," "could," "expect," "anticipate," "estimate," "believe," "intend," or "project" or the negative of these words or other variations on these words or comparable terminology. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties, including but not limited to: adverse economic conditions, competition, adverse federal, state and local government regulation, international governmental regulation, inadequate capital, inability to carry out research, development and commercialization plans, loss or retirement of key executives and other specific risks. To the extent that statements in this press release are not strictly historical, including statements as to revenue projections, business strategy, outlook, objectives, future milestones, plans, intentions, goals, future financial conditions, events conditioned on stockholder or other approval, or otherwise as to future events, such statements are forward-looking, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this release are subject to certain risks and uncertainties that could cause actual results to differ materially from the statements made.
Corporate Contact:
Electromedical Technologies, Inc.
Tel: 1.888.880.7888
Email: ir@electromedtech.com
https://electromedtech.com
Public Relations:
EDM Media, LLC
https://edm.media
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SOURCE Electromedical Technologies, Inc.
