NanoVibronix Issues Letter to Stockholders

NanoVibronix, Inc. (NASDAQ: NAOV), a medical device company that produces the UroShield, PainShield and WoundShield Surface Acoustic Wave (SAW) Portable Ultrasonic Therapeutic Devices, today issued a letter to its stockholders from its Chief Executive Officer, Brian Murphy, providing a review of the first quarter of 2024 and recent business developments.

To Our Stockholders:

We are committed to our strategic vision of developing, improving and commercializing our distinct and effective therapies, which we believe enable healthcare providers to treat patients in need and fill a void in the market, which has the potential to increase value for our stockholders. We are focused on several areas that we believe will have a substantial impact on our growth and product adoption. Many of these areas of focus have begun showing positive results, as reflected in our most recent quarterly financial results. Our products continue to deliver impressive results with high patient satisfaction, with no demonstrated adverse events. We are also investing in sales improvement and long-term opportunities with all of our products.

Q1 2024 Financial Results

We recorded revenues of approximately $921,000 for the quarter ended March 31, 2024, which is the largest amount of revenue we have ever recorded in the first quarter of any year, and a loss from operations of approximately $568,000. We continue to generate increased revenues from the Veterans’ Health System and worker’s compensation market segments. Our balance sheet remains strong with approximately $2.7 million of cash and inventory of approximately $2.6 million.

Domestic Update

We continue to make progress in several channels of domestic sales and product adoption. Our penetration into the Veterans Affairs (“VA”) continues to improve both in facilities served as well as adoption within those facilities. With our VA partner, Delta Medical, LLC, we were awarded a General Services Administration (“GSA”) grant that provides for an accelerated uptake in product adoption within the Veterans Health facilities. The GSA contract became effective on May 1, 2024. We expect this contract to have a positive impact on both sales and adoption of our products, as well as provide a significant competitive advantage. I am highly optimistic about our sales growth within this important business sector. Additionally, we continue to make progress in the workers’ compensation area of our business, both on a direct basis and through our Durable Medical Equipment (“DME”) exclusive distributor. We are also gratified to see the increase in the adoption of PainShield within both reimbursable market segments. The PainShield product family is quickly becoming a recognizable and acceptable standard for pain relief and the avoidance of opioids.