Electromedical
Technologies Announces Financial and Operational Highlights for the
Three and Nine Months Ended September 30, 2022
SCOTTSDALE, AZ -- December 5, 2022 -- 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 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
1)
Public Relations:
EDM Media, LLC
https://edm.media
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