SANUWAVE Health (SNWV) 8-K Sanuwave Reports First Quarter Financial Results

Exhibit 99.1

FOR IMMEDIATE RELEASE

SANUWAVE REPORTS FIRST QUARTER FINANCIAL RESULTS

ALPHARETTA, GA, May 14, 2012 – SANUWAVE Health, Inc. (OTCBB: SNWV) today reported financial results for the three months ended March 31, 2012 and provided a business update.

Christopher M. Cashman, President and CEO of SANUWAVE, said, “As recently announced, we have been granted conditional approval by the U.S. Food and Drug Administration (FDA) of our Investigational Device Exemption (IDE) Supplement for an additional clinical trial utilizing our dermaPACE® device in the treatment of diabetic foot ulcers.  We believe the clinical trial could be completed and submitted in support of a Premarket Approval (PMA) application for dermaPACE in as early as 20 months from trial initiation, assuming such data to be collected meets the agreed upon statistical and clinical plan of success.  The Company has already identified clinical study sites and is in the process of qualifying them for participation.  Patient enrollment is expected to begin once Institutional Review Board (IRB) approvals and appropriate funding to conduct the study are in place, which is forecasted to occur as early as the third quarter of this year.”

Mr. Cashman continued, “We continue to make every effort to lower our cash burn to the maximum extent to which we do not affect the value of the business, our ability to raise funds or pursue strategic options, or our capability to start up and conduct our next dermaPACE study to treat diabetic foot ulcers.  As previously announced, we have retained the services of Canaccord Genuity Inc., a leading investment bank, to help us explore capital fund raising and/or strategic options for SANUWAVE to fund the Company so we can start this clinical work.”

“The FDA’s conditional approval of the IDE Supplement is a highly positive development in the approval process of dermaPACE for the U.S. market.  The planned trial provides a scientifically robust, yet potentially more expeditious pathway to validation of dermaPACE’s safety and efficacy and subsequent FDA approval.  Our focus remains the same, which is to achieve FDA approval as soon as possible in order to make dermaPACE available to the millions of U.S. patients who suffer from debilitating, recalcitrant diabetic foot ulcers,” concluded Mr. Cashman.

Financial highlights for the 2012 first quarter include (all comparisons are with the 2011 first quarter):

· Gross profit increased by $8,313, or 5%, to $166,768.  Gross profit as a percentage of revenues increased to 70%, up from 63%.

· Total operating expenses decreased by $291,174, or 13%.  The Company will recognize the full extent of cost saving measures implemented in Q1-2012, including headcount reductions and expense savings, in Q2-2012 and thereafter.

· Net loss for the quarter decreased by $348,011, or 16%, to $1,835,315 from $2,183,326.

Revenues for the three months ended March 31, 2012 were $238,540, compared with $251,753 for the same period in 2011.  The decrease of $13,213, or 5%, is attributable to lower sales of devices to the Company’s European distributors which was partially offset by increased sales of higher margin refurbishment applicators.

Cost of revenues for the three months ended March 31, 2012 was $71,772, compared with $93,298 for the same period in 2011.  Gross profit as a percentage of revenues was 70% for the three months ended March 31, 2012, compared with 63% for the same period in 2011.  The increase in gross profit as a percentage of revenues was due to increased sales of higher margin applicators and wound kits in 2012 due to more devices being in service in 2012 as compared to 2011.

Research and development expenses for the three months ended March 31, 2012 were $603,797, compared with $749,299 for the same period in 2011, a decrease of $145,502, or 19%, due to lower expenses related to clinical results analysis in 2012.  Consulting expenses related to clinical results analysis were higher in 2011 as the Company prepared to submit to the FDA the dermaPACE PMA for treating diabetic foot ulcers in June 2011.

General and administrative expenses for the three months ended March 31, 2012 were $1,237,540, compared with $1,382,185 for the same period in 2011, a decrease of $144,645, or 10%.  General and administrative expenses included non-cash stock-based compensation of $262,176 and $152,448 for the three months ended March 31, 2012 and 2011, respectively.  The increase in stock-based compensation was due to the November 2011 granting of employee stock options and the March 2012 granting of stock options to members of the Company’s medical advisory board.  Excluding non-cash stock-based compensation, general and administrative expenses were $975,364 for the three months ended March 31, 2012, compared with $1,229,737 for the same period in 2011, a decrease of $254,373, or 21%.  The decrease is mainly due to decreased investor relations expenses and decreased legal costs for patent defense activities.

The net loss for the three months ended March 31, 2012 was $1,835,315, or ($0.09) per share, compared with a net loss of $2,183,326, or ($0.14) per share, for the three months ended March 31, 2011, a reduction of $348,011, or 16%.

As of March 31, 2012, the Company had cash and cash equivalents of $2,421,809, compared with $3,909,383 as of December 31, 2011, a decrease of $1,487,574.  For the three months ended March 31, 2012, net cash used by operating activities was $1,490,445, primarily consisting of compensation costs, research and development activities and general corporate operations.  In addition, the net cash used by operating activities for the three months ended March 31, 2012 included payments to reduce current payables and accrued expenses which totaled $168,326.

About SANUWAVE Health, Inc.

SANUWAVE Health, Inc. (www.sanuwave.com) is an emerging regenerative medicine company focused on the development and commercialization of noninvasive, biological response activating devices for the repair and regeneration of tissue, musculoskeletal and vascular structures.  SANUWAVE’s portfolio of products and product candidates activate biologic signaling and angiogenic responses, including new vascularization and microcirculatory improvement, helping to restore the body’s normal healing processes and regeneration.  SANUWAVE intends to apply its PACE technology in wound healing, orthopedic/spine, plastic/cosmetic and cardiac conditions.  Its lead product candidate for the global wound care market, dermaPACE, is CE marked and has Canadian device license approval for the treatment of the skin and subcutaneous soft tissue.  In the U.S., dermaPACE is currently under the FDA’s Premarket Approval (PMA) review process for the treatment of diabetic foot ulcers.  SANUWAVE researches, designs, manufactures, markets and services its products worldwide, and believes it has demonstrated that its technology is safe and effective in stimulating healing in chronic conditions of the foot (plantar fasciitis) and the elbow (lateral epicondylitis) through its U.S. Class III PMA approved Ossatron® device, as well as stimulating bone and chronic tendonitis regeneration in the musculoskeletal environment through the utilization of its Ossatron, Evotron® and orthoPACE® devices in Europe.

Forward-Looking Statements

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future business development activities, and are thus prospective. Forward-looking statements include all statements that are not statements of historical fact regarding intent, belief or current expectations of the Company, its directors or its officers. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company’s ability to control. Actual results may differ materially from those projected in the forward-looking statements. Among the key risks, assumptions and factors that may affect operating results, performance and financial condition are risks associated with the marketing of the Company’s product candidates and products, unproven pre-clinical and clinical development activities, regulatory oversight, the Company’s ability to manage its capital resource issues, competition, and the other factors discussed in detail in the Company’s periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statement.

For additional information about the Company, visit www.sanuwave.com.

Contact:

SANUWAVE Health, Inc.

Barry Jenkins, 678-578-0103

Chief Financial Officer

or

Bernie Laurel, 678-578-0103

VP of Sales and Marketing

investorrelations@sanuwave.com

(FINANCIAL TABLES FOLLOW)

SANUWAVE HEALTH, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	March 31,			December 31,
	2012			2011
	(Unaudited)			(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	2,421,809		$	3,909,383
Accounts receivable - trade, net		126,131			81,565
Inventory		358,341			396,284
Prepaid expenses		171,705			162,975
Due from Pulse Veterinary Technologies, LLC		-			27,837
TOTAL CURRENT ASSETS		3,077,986			4,578,044
PROPERTY AND EQUIPMENT, at cost, less accumulated depreciation		46,941			51,206
OTHER ASSETS		3,321			3,192
INTANGIBLE ASSETS, at cost, less accumulated amortization		1,457,093			1,533,782
TOTAL ASSETS	$	4,585,341		$	6,166,224
LIABILITIES
CURRENT LIABILITIES
Accounts payable	$	604,104		$	756,657
Accrued employee compensation		790,892			632,333
Accrued expenses		174,810			190,583
Interest payable, related parties		80,071			81,864
Capital lease payable, current portion		4,663			4,576
Liabilities related to discontinued operations		655,061			655,061
TOTAL CURRENT LIABILITIES		2,309,601			2,321,074
NON-CURRENT LIABILITIES
Notes payable, related parties		5,372,743			5,372,743
Capital lease payable, non-current portion		7,685			8,884
TOTAL NON-CURRENT LIABILITIES		5,380,428			5,381,627
TOTAL LIABILITIES		7,690,029			7,702,701
COMMITMENTS AND CONTINGENCIES		-			-
STOCKHOLDERS' DEFICIT
PREFERRED STOCK, par value $0.001, 5,000,000 shares authorized; no shares issued and outstanding		-			-
COMMON STOCK, par value $0.001, 50,000,000 shares authorized; 20,907,536 issued and outstanding in 2012 and 2011		20,908			20,908
ADDITIONAL PAID-IN CAPITAL		63,203,153			62,940,977
ACCUMULATED OTHER COMPREHENSIVE INCOME		15,394			10,466
RETAINED DEFICIT		(66,344,143	)		(64,508,828	)
TOTAL STOCKHOLDERS' DEFICIT		(3,104,688	)		(1,536,477	)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$	4,585,341		$	6,166,224

SANUWAVE HEALTH, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(UNAUDITED)

	Three Months Ended			Three Months Ended
	March 31,			March 31,
	2012			2011
REVENUES	$	238,540		$	251,753
COST OF REVENUES		71,772			93,298
GROSS PROFIT		166,768			158,455
OPERATING EXPENSES
Research and development		603,797			749,299
General and administrative		1,237,540			1,382,185
Depreciation		5,210			6,237
Amortization		76,689			76,689
TOTAL OPERATING EXPENSES		1,923,236			2,214,410
OPERATING LOSS		(1,756,468	)		(2,055,955	)
OTHER INCOME (EXPENSE)
Interest expense, net		(78,856	)		(236,280	)
Income (loss) on foreign currency exchange		9			(3,591	)
Transitional services provided to Pulse Veterinary Technologies, LLC		-			112,500
TOTAL OTHER INCOME (EXPENSE)		(78,847	)		(127,371	)
LOSS BEFORE INCOME TAXES		(1,835,315	)		(2,183,326	)
INCOME TAX EXPENSE		-			-
NET LOSS		(1,835,315	)		(2,183,326	)
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustments		4,928			10,998
TOTAL COMPREHENSIVE LOSS	$	(1,830,387	)	$	(2,172,328	)
LOSS PER SHARE:
Net loss - basic	$	(0.09	)	$	(0.14	)
Net loss - diluted	$	(0.09	)	$	(0.14	)
Weighted average shares outstanding - basic		20,907,536			16,143,655
Weighted average shares outstanding - diluted		20,907,536			16,143,655

SANUWAVE HEALTH, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Three Months Ended			Three Months Ended
	March 31,			March 31,
	2012			2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(1,835,315	)	$	(2,183,326	)
Adjustments to reconcile net loss to net cash used by operating activities:
Amortization		76,689			76,689
Depreciation		5,210			6,237
Change in allowance for doubtful accounts		(2,520	)		44,302
Stock-based compensation		262,176			152,448
Accrued interest		-			159,273
Changes in assets - (increase)/decrease
Accounts receivable - trade		(42,046	)		(100,803	)
Inventory		37,943			40,838
Prepaid expenses		(8,730	)		(37,467	)
Due from Pulse Veterinary Technologies, LLC		27,837			(126,479	)
Other		(129	)		(45	)
Changes in liabilities - increase/(decrease)
Accounts payable		(152,553	)		(267,968	)
Accrued employee compensation		158,559			151,686
Accrued expenses		(15,773	)		64,832
Interest payable, related parties		(1,793	)		(2,906	)
NET CASH USED BY OPERATING ACTIVITIES		(1,490,445	)		(2,022,689	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment		(945	)		-
NET CASH USED BY INVESTING ACTIVITIES		(945	)		-
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from unit options exercised, related parties		-			2,463,008
Proceeds from unit options exercised		-			1,437,326
Payment of principal on capital lease		(1,112	)		-
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES		(1,112	)		3,900,334
EFFECT OF EXCHANGE RATES ON CASH		4,928			10,998
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(1,487,574	)		1,888,643
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		3,909,383			417,457
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	2,421,809		$	2,306,100
SUPPLEMENTAL INFORMATION
Cash paid for interest, related parties	$	81,864		$	81,864
Cash paid for capital lease interest	$	247		$	-