Electromedical Technologies Announces Financial and Operational Highlights for the Three Months Ended March 31, 2022
SCOTTSDALE, Ariz., May 24, 2022 /PRNewswire/ -- InvestorsHub NewsWire -- Electromedical Technologies, Inc. (OTCQB: EMED) ("Electromedical" or the "Company"), a pioneer in the development and production of bioelectronic devices designed to relieve chronic, intractable, and acute pain by using frequencies and electro-modulation, is pleased to provide its Financial and Operational Highlights for the three months ended March 31, 2022.
"We continue to drive strong growth on the topline, which is critical given the inherent scalability of our model and our capacity to expand with strong margins," noted Matthew Wolfson, Founder and CEO of Electromedical. "Our flagship device, the WellnessPro plus, has helped thousands upon thousands of people over the past 15 years get their lives back and enjoy a pain free life without the use of opioids. These trends are picking up in our core business and our focus on investing in marketing and sales personnel and initiatives continues to pay off and provide a strong outlook ahead as we move closer toward the commercial launch of our next generation product line."
Financial Performance Highlights for the Three Months Ended Mar 31, 2022
- Net Sales increased 33% year over year to $221,894
- Gross Profit increased 24% year over year
- Gross Margin decreased from 75% to 70%, impacted by additional freight costs to expedite inventory delivery
- Overall Net Loss dropped 55% year over year to $1.1 million
Operational Highlights for the Three Months Ended Mar 31, 2022
- Continued investments in Marketing and Sales initiatives.
- Hired Director of Business and Sales Development with deep industry track record and experience.
- Made strong R&D gains in development of new product line targeting October 2022 full commercial launch.
Management sees the Company's continued strides in topline growth as further reinforcement for its strategic decision to invest heavily in sales and marketing, both in terms of personnel and other key strategies. In particular, the Company's decision to hire a top industry veteran with a long track record of success, David Orn, as its new Director of Business and Sales Development has been important in driving further topline expansion.
Orn added, "My goal for this year is to onboard 100 active independent medical sales reps, selling the Wellness Pro plus every month."
Wolfson added, "Q1 was a strong start to an exciting year with bold steps ahead. I'm proud of our team and grateful for the new talent we have been adding as we scale our operations, and I look forward to sharing more with our stakeholders as we push past new milestones in the months ahead."
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: [email protected]
https://electromedtech.com
ELECTROMEDICAL TECHNOLOGIES, INC. |
||||||
March 31, |
December 31, |
|||||
ASSETS |
||||||
Current assets: |
||||||
Cash and cash equivalents |
$ |
170,048 |
$ |
383,170 |
||
Accounts receivable |
31,790 |
35,085 |
||||
Inventories |
196,924 |
218,510 |
||||
Prepaid expenses and other current assets |
24,930 |
38,002 |
||||
Total current assets |
423,692 |
674,767 |
||||
Property and equipment, net |
721,875 |
727,344 |
||||
Total assets |
$ |
1,145,567 |
$ |
1,402,111 |
||
LIABILITIES AND STOCKHOLDERS' DEFICIT |
||||||
Current liabilities: |
||||||
Accounts payable |
$ |
274,251 |
$ |
214,785 |
||
Credit cards payable |
14,686 |
11,283 |
||||
Accrued expenses and other current liabilities |
539,237 |
317,037 |
||||
Customer deposits |
21,850 |
— |
||||
Convertible promissory notes, net of discount of $492,877 and $723,166, respectively |
1,289,476 |
811,687 |
||||
Related party notes payable |
— |
57,875 |
||||
Long term debt, current portion |
30,490 |
29,502 |
||||
Total current liabilities |
2,169,990 |
1,442,169 |
||||
Long-term liabilities: |
||||||
Bank debt, net of current portion |
511,613 |
518,849 |
||||
Government debt, net of current portion |
153,789 |
154,429 |
||||
Other liabilities |
9,204 |
9,167 |
||||
Total liabilities |
2,844,596 |
2,124,614 |
||||
Commitments and contingencies |
— |
— |
||||
Stockholders' deficit |
||||||
Series A Preferred Stock, $.00001 par value, 1,000,000 shares authorized and 500,000 outstanding |
355,000 |
355,000 |
||||
Series B Preferred Stock, $.00001 par value, 1 share authorized and 0 outstanding |
— |
— |
||||
Common stock, $.00001 par value, 500,000,000 and 250,000,000 shares authorized; 104,955,567 and |
1,048 |
876 |
||||
Additional paid-in-capital |
20,401,493 |
20,804,333 |
||||
Accumulated deficit |
(22,456,570) |
(21,882,712) |
||||
Total stockholders' deficit |
(1,699,029) |
(722,503) |
||||
Total liabilities and stockholders' deficit |
$ |
1,145,567 |
$ |
1,402,111 |
||
ELECTROMEDICAL TECHNOLOGIES, INC. |
||||||
2022 |
2021 |
|||||
Net sales |
$ |
221,894 |
$ |
166,440 |
||
Cost of sales |
67,641 |
41,951 |
||||
Gross profit |
154,253 |
124,849 |
||||
Selling, general and administrative expenses |
879,810 |
1,689,383 |
||||
Loss from operations |
(725,557) |
(1,564,534) |
||||
Other income (expense) |
||||||
Interest expense |
(213,379) |
(1,060,302) |
||||
Change in fair market value of derivative liabilities |
— |
14,798 |
||||
Other income (expense) |
— |
(428) |
||||
Loss on extinguishment of debt |
(205,600) |
— |
||||
Forgiveness of debt |
— |
50,082 |
||||
Total other expense |
(418,979) |
(995,850) |
||||
Net loss |
$ |
(1,144,536) |
$ |
(2,560,384) |
||
Deemed dividend related to warrant resets |
(63,381) |
(510,222) |
||||
Net loss attributable to common stockholders |
(1,207,917) |
(3,070,606) |
||||
Weighted average shares outstanding - basic and diluted |
97,260,915 |
28,558,027 |
||||
Weighted average loss per share - basic and diluted |
$ |
(0.01) |
$ |
(0.11) |
||
ELECTROMEDICAL TECHNOLOGIES, INC. |
||||||
2022 |
2021 |
|||||
Cash flows from operating activities: |
||||||
Net loss |
$ |
(1,144,536) |
$ |
(2,560,384) |
||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||
Stock-based compensation expense |
361,603 |
1,298,727 |
||||
Depreciation and amortization |
5,469 |
5,469 |
||||
Forgiveness of debt |
— |
(49,783) |
||||
Loss on extinguishment of debt |
205,600 |
— |
||||
Amortization of debt discount and day one derivative loss and warrant expense |
164,710 |
1,010,601 |
||||
Change in fair value of derivative liabilities- convertible promissory notes |
— |
(14,798) |
||||
Change in operating assets and liabilities: |
||||||
Accounts receivable |
3,295 |
(4,178) |
||||
Inventories |
21,586 |
(129,791) |
||||
Prepaid expenses and other current assets |
13,072 |
161,990 |
||||
Other assets |
— |
7,000 |
||||
Accounts payable |
59,466 |
(42,284) |
||||
Credit cards payable |
3,403 |
(1,057) |
||||
Accrued expenses and other current liabilities |
(33,400) |
9,817 |
||||
Customer deposits |
21,850 |
(18,301) |
||||
Other liabilities |
37 |
(265) |
||||
Net cash used in operating activities |
(317,845) |
(327,237) |
||||
Cash flows from financing activities: |
||||||
Repayments on bank debt |
(6,888) |
(6,556) |
||||
Related party notes payable-net |
(57,875) |
(50,000) |
||||
Issuance of convertible promissory notes |
494,220 |
712,500 |
||||
Repayments on convertible promissory notes |
(367,500) |
— |
||||
Repayments on notes payable |
— |
(12,846) |
||||
Issuance of common stock for cash - net |
42,766 |
— |
||||
Net cash provided by financing activities |
104,723 |
643,098 |
||||
Net (decrease) increase in cash and cash equivalents |
(213,122) |
315,861 |
||||
Cash and cash equivalents, beginning of period |
383,170 |
264,913 |
||||
Cash and cash equivalents, end of period |
$ |
170,048 |
$ |
580,774 |
||
Supplemental disclosures of cash flow information: |
||||||
Cash paid during the period for: |
||||||
Interest |
$ |
72,308 |
$ |
16,356 |
||
Income taxes |
$ |
— |
$ |
— |
||
Non-cash investing and financing activities: |
||||||
January 1,2022 adoption of ASU2020-06 |
$ |
379,355 |
$ |
— |
||
Warrants, common stock and beneficial conversion feature issued in conjunction with convertible promissory notes |
$ |
192,996 |
$ |
420,096 |
||
Derivative liabilities issued in conjunction with convertible promissory notes |
$ |
— |
$ |
974,931 |
||
Conversion of convertible promissory notes, derivative liabilities and accrued interest into shares of common stock |
$ |
— |
$ |
380,103 |
||
SOURCE Electromedical Technologies, Inc.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article