NanoVibronix Issues Letter to Shareholders

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 shareholders from its Chief Executive Officer, Brian Murphy, providing a review of the third quarter 2023 and recent business developments.

To Our Shareholders:

NanoVibronix is 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, fill a void in the market and have the potential to increase value for our shareholders. We are focused on several areas that we believe will have a substantial impact on our growth and product adoption. Many of those areas of focus have begun showing positive results, as reflected in our most recent quarter’s financial results. Our products continue to deliver impressive results with high patient satisfaction.

Q3 Financial Results

We recorded revenues of $458,000 for the quarter ended September 30, 2023 with a loss from operations of $670,000. In the relative year-to-date period, revenues increased 22% and the loss from operations was reduced by approximately 20%. Most significantly, our short-term liquidity concerns were alleviated by our sales of securities for net proceeds of approximately $4.2 million during the quarter. On our balance sheet for the period ended September 30, 2023, we had $3.8 million of cash and receivables and inventory in excess of $3.1 million.

International update

We continue to make progress in two international markets where full reimbursement is being considered. This, again, will hopefully significantly enhance our opportunities in these two key markets.

In the U.K., we continue to leverage our contract with the National Health Services (“NHS”) Supply Chain and our supplies reimbursement through the NHS Prescription Services’ Drug Tariff, which became effective on November 1. We continue to make progress with our Uroshield product and are experiencing greater interest since the beginning of this month. Our UK distributor, Peak Medical Limited, continues to actively pursue market opportunities throughout the country.

Furthermore, we are continuing to experience increased interest and demand in Australia and New Zealand and are working toward expanded distribution in Europe.

Domestic update

We continue to make progress in several channels of domestic sales and product adoption. We added Mio-Guard as an exclusive distributor for our Sports segment of the pain business. They continue to make progress in that area. Our VA penetration continues to improve in both facilities served as well as adoption within those facilities. 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, whose contract was recently extended.