NanoVibronix Issues Letter to Stockholders

NanoVibronix, Inc., (NASDAQ: NAOV)(“NanoVibronix”), a medical device company that produces the UroShield, PainShield and WoundShield Surface Acoustic Wave (SAW) Portable Ultrasonic Therapeutic Devices, today issued a letter to stockholders from its Chief Executive Officer, Brian Murphy, providing a review of the fourth quarter and full year 2023 and recent business developments.

To Our Shareholders:

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, fill a void in the market and have 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 those 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 adverse events. We are investing in sales improvement and long-term opportunities with all of our products.

Q4 Financial Results

We recorded revenues of approximately $1.2 million for the quarter ended December 31, 2023, the largest amount of revenues we have ever posted in any one quarter, and recorded a loss from operations of approximately $702,000. A driving factor in our increased revenues was increased sales to customers using the Veterans’ Health System and worker’s compensation plans. In addition, our short-term liquidity concerns were alleviated by sales of our securities for aggregate net proceeds of approximately $4.2 million during the third quarter of 2023. On our balance sheet for the period ended December 31, 2023, we had $3.3 million of cash and inventory of $2.7 million.

Domestic update

We continue to make progress in several channels of domestic sales and product adoption. Our VA penetration continues to improve in both facilities served as well as adoption within those facilities. With our VA partner, Delta Medical, we are working toward a GSA grant that would provide for an accelerated uptake in product adoption within the Veterans Health 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. We are 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.