SCOTTSDALE, Ariz., Aug. 18, 2022 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 and six months ended June 30, 2022.
"We continue to drive toward scalable growth and new innovations, positioning the Company as an emerging leader in technologies that offer a drug-free path to a pain-free life," noted Matthew Wolfson, Founder and CEO of Electromedical. "Q2 delivered another quarter of robust growth in net sales. And we made significant progress in board governance and product development."
Financial Performance Highlights for the Three Months Ended June 30, 2022
Net Sales increased 11% over Q2 2021 to $225k primarily due to increased unit sales.
Gross Margin increased to 80% as compared to 75% in Q2 2021.
Loss from operations was ($283K) versus ($525K) in Q2 2021, an 85% improvement.
Net loss was ($536K) versus ($775K) in Q2 2021, a 31% improvement, reflecting increased gross profit and reductions in selling, general and administrative expenses and interest.
Financial Performance Highlights for the Six Months Ended June 30, 2022
Net Sales increased 21% year over the six months ended June 30,2021 to $447K.
Gross Margin remained at 75% for both six-month periods.
Loss from operations was ($672K) versus ($1.2M) in the six months ended June 30, 2021, a 46% improvement.
Net loss was ($1.7M) versus ($3.3M) in the six months ended June 30,2021, a 49% improvement, reflecting increased gross profit and reductions in selling, general and administrative expenses and interest.
The Company's business model remained resilient during the quarter ended June 30 despite macro headwinds, including inflation, a slowdown in consumer spending, and continued global supply chain concerns. During the quarter, Electromedical was able to achieve top and bottom-line growth at improved margins, shrinking the Company's loss from operations by over 50% year over year, moving the Company closer to EBITDA profitability.
The Company continues to invest in expanding its sales and marketing resources as well as developing next-generation technology capable of providing scalable accelerating growth in the months and quarters ahead.
The Company was also able to shore up its balance sheet during the quarter by working with one of its most significant stakeholders to reduce debt carried by the Company by more than $600k in a debt-to-equity conversion involving restricted shares.
In addition, the Company added strong talent and experience to its Board of Directors with the addition of Lee Benson, a proven leader with an established track record of profound success in business and the engineering space.
Wolfson added, "We have reduced dilution risk, shored up the balance sheet, and added proven leadership talent to our board, building governance and strategic value into the core of the Company as we move toward scaling the business. We have a number of updates in the works related to R&D achievements and further investments in driving expanding sales. I look forward to providing additional updates soon."
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.
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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.
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Tel: 1.888.880.7888
Email: ir@electromedtech.com
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Public Relations:
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a) The accompanying notes are an integral part of these financial statements
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The accompanying notes are an integral part of these financial statements
The accompanying notes are an integral part of these financial statements
Company Codes: OTC-QB:EMED, OTC-BB:EMED
