Sofwave Medical Reports Fourth Quarter and Full Year 2023 Financial Results and Business Highlights

Full fiscal 2023 revenue of $50.3M, +41% year-over-year growth; gross margin of 74.5%

Full fiscal 2023 pulse recurring revenue of $13.0M, +81% year-over-year growth

Fourth quarter revenue of $15.3M, +11% year-over-year growth

IFRS operating loss narrowed to -$0.2M in the fourth quarter nearing breakeven, generated non-GAAP fourth quarter operating profit of $0.2M

Full Fiscal 2023 Revenue of $50.3M, representing 41% year-over-year growth

• Recurring revenue of $13.0M, a year-over-year increase of 81%, representing 25.8% of total revenue

• Gross Profit was $37.5M, a year-over-year increase of 42%

• IFRS Gross Margin:5%; *Non-GAAP: 74.8%

• IFRS Operating Loss: $8.0M; down from $17.4M in 2022; *Non-GAAP Operating Loss: $5.7M

Fourth Quarter Revenue of $15.3M; representing 11% year-over-year growth

• Recurring revenue of $4.4M, a year-over-year increase of 63%, representing 28.9% of total revenue

• Gross Profit was $11.7M, a year-over-year increase of 14%

• IFRS Gross Margin:1%; *Non-GAAP: 76.3%

• IFRS Operating Loss: –$0.2M

• *Non-GAAP Operating Profit: $0.2M

Cash and Cash Equivalents as of December 31, 2023: $24.4M. Generated $0.2M cash in the fourth quarter of 2023. Cash used in 2023 of $7.6M down from $14.2M in 2022.

Medical aesthetics expert and industry veteran James Bartholomeusz was appointed to the newly created position of Chief Innovation Officer.

Obtained FDA510(k) marketing clearance for SUPERB™ technology for improvement of the appearance of skin laxity on the upper arm.

Obtained FDA 510(k) marketing clearance for Pure Impact™ strength and muscle toning body module utilizing PlyoPulse™ EMS technology.

Over 225,000 treatments have been conducted since initial market approval.