Innovus Pharma Reports Quarterly Revenue for the First Quarter 2019 of $5.4 Million, a 18.0% Increase from Comparable Quarter in the Prior Year

May 15, 2019 Off By BusinessWire

Cash, inclusive of merchant processor holdback, of $2.9 million as of
May 13, 2019

SAN DIEGO–(BUSINESS WIRE)–Innovus Pharmaceuticals, Inc. (“Innovus Pharma” or the “Company”)
(OTCQB: INNV), an emerging commercial-stage pharmaceutical company that
delivers safe, innovative and effective over-the-counter medicine and
consumer care products to improve men’s and women’s health and
respiratory diseases, announced today its reported results for the three
months ended March 31, 2019.

Financial highlights for the three months ended March 31,
2019 compared to March 31, 2018 included:

  • Revenues of approximately $5.4 million, an increase of $0.8 million or
    18.0% compared to prior year and $0.6 million or 12.8% compared to the
    prior quarter;
  • Sales & marketing expense as a percentage of total revenue declined to
    48.4% compared with 72.7% in prior year;
  • Annual product subscription and outbound concierge net revenue of $1.1
    million compared to $0.6 million in the prior year or a 98.2% increase;
  • Completed $3.17 million private placement;
  • Cash used in operations of $0.6 million compared with $0.7 million in
    the prior year;
  • Company’s cash and merchant processor holdback position as of May 13,
    2019 was $2.9 million; and
  • Annual 2019 net revenue projected to achieve record levels of $26-28
    million.

2019 First Quarter and Recent Corporate Progress

  • Acquired assets of PrimeSavingsClub.com adding another revenue channel
    with recent historical annual revenues of $2.5 million;
  • Diversified revenue channels resulting in approximately 30% of revenue
    derived from e-commerce platforms;
  • Announced the FDA Approval of new ANDA for supply of Fluticare which
    provides the Company with two suppliers of the product and the
    opportunity to use the dossier for international filings;
  • Obtained approval of four products: Diabasens®, BH® Testosterone
    Booster, Xyralid® and RecalMax™ in Canada;
  • Completed reverse stock split with an intention to potentially up list
    to Nasdaq;
  • International partner, Lavasta Pharma receives approval from Algeria
    to market and sell Zestra® and Zestra Glide® and received a purchase
    order for $186,000;
  • Announced a second partnered US ANDA for Minoxidil 5% Foam for men and
    women to be sold under the name Regoxidine™; and
  • Launched first hemp-derived Cannabidiol product with MZS Sleeping Aid™.

“We are encouraged by our start to the 2019 year with revenues
increasing 18% and 12.8% in the comparable quarter in the prior year and
the previous quarter, respectively. The Company has been able to
strategically diversify its revenue channels during the quarter without
significant disruption to overall revenue and achieving revenues from
e-commerce platforms by approximately 30%. Additionally, with twelve
products now approved by Health Canada, we are poised to focus more
marketing efforts in Canada where we have historically experienced
superior returns which we believe will help us achieve our goal of
profitability,” stated Bassam Damaj, President and Chief Executive
Officer of Innovus Pharma.

The Company will host a conference call at 4:15 p.m. ET/1:15 p.m. PT
today to discuss the financial results and recent business developments.
To participate in the call, please dial 1-877-883-0383 for domestic
callers or 1-412-902-6506 for international callers or 1-877-885-0477
for Canadian callers. Participant Elite Entry Number: 0678670. A replay
of the call will be available for 30 days. To access the replay, dial
1-877-344-7529 domestically or 1-412-317-0088 internationally or
1-855-669-9658 for Canada and reference Replay Access Code: 10131471.
The replay will be available shortly after the end of the conference
call.

 

Consolidated Statements of Operations (amounts in thousands
except weighted average share and per share amounts)

 
Three months ended
March 31,
2019   2018
(unaudited)
Net revenue:
Product sales, net $ 5,189 $ 4,542
Service revenue 100
Cooperative marketing revenue 71
License revenue   3   3
Total net revenue 5,363 4,545
 
Cost of product sales   1,778   864
Gross profit   3,585   3,681
 
Operating expense:
Research and development 56 11
Sales and marketing 2,595 3,302
General and administrative   2,435   1,696
Total operating expense   5,086   5,009
 
Loss from operations   (1,501 )   (1,328 )
 
 
Other income and (expense):
Interest expense (490 ) (242 )
Loss on extinguishment of debt (256 )
Fair value adjustment for contingent consideration   2   (3 )
Total other expense, net (488 ) (501 )
 
Loss before provision for income taxes (1,989 ) (1,829 )
 
Provision for income taxes    
 
Net loss $ (1,989 ) $ (1,829 )
 
 
Net loss per share of common stock – basic and diluted: $ (0.81 ) $ (1.03 )
 
Weighted average number of shares of common stock outstanding –
basic and diluted
  2,445,471   1,780,321
 
 

Condensed Consolidated Balance Sheet Data (in thousands)

     

March 31,
2019

December 31,
2018

1 1
Assets
Cash $ 1,947 $ 1,248
Accounts receivable, net 130 282
Prepaid expenses and other current assets 1,574 1,116
Inventories 2,130 2,370
Intangible assets and other non-current assets   5,588   5,111
Total assets $ 11,369 $ 10,127
Liabilities & Stockholders’ Equity
Accounts payable & accrued liabilities $ 2,799 $ 2,622
Total accrued compensation 2,610 2,480
Deferred revenue and customer deposits 282 108
Accrued interest payable 35 32
Short-term loans payable 422 266
Notes payable and non-convertible debenture, net of discount 2,230 3,073
Operating lease liability 676
Total contingent consideration 1,254 1,256
Deferred rent 181
Total stockholders’ equity   1,061   109
Total liabilities & stockholders’ equity $ 11,369 $ 10,127

1 The Condensed Consolidated Balance Sheet Data has
been derived from the audited consolidated financial statements as of
that date.

About Innovus Pharmaceuticals, Inc.

Headquartered in San Diego, Innovus Pharma is an emerging OTC consumer
goods and specialty pharmaceutical company engaged in the
commercialization, licensing and development of safe and effective
non-prescription medicine and consumer care products to improve men’s
and women’s health and vitality and respiratory diseases. Innovus Pharma
delivers innovative and uniquely presented and packaged health solutions
through its (a) OTC medicines and consumer and health products, which we
market directly, (b) commercial partners to primary care physicians,
urologists, gynecologists and therapists, and (c) directly to consumers
through our on-line channels, retailers and wholesalers. The Company is
dedicated to being a leader in developing and marketing new OTC and
branded Abbreviated New Drug Application (“ANDA”) products. The Company
is actively pursuing opportunities where existing prescription drugs
have recently, or are expected to, change from prescription (or Rx) to
OTC.

For more information, go to www.innovuspharma.com;
www.zestra.com;
www.ejectdelay.com;
www.myvesele.com;
www.urivarx.com;
www.sensumplus.com;
www.myandroferti.com;
www.beyondhumantestosterone.com;
www.getbeyondhuman.com;
www.trybeyondhuman.com;
www.recalmax.com;
www.prostagorx.com;
www.xyralid.com;
www.fluticare.com;
www.allervarx.com;
and www.apeaz.com;
www.mzssleepingaid.com;
www.novalere.com;
and www.diabasens.com.

Innovus Pharma’s Forward-Looking Safe Harbor

Statements under the Private Securities Litigation Reform Act, as
amended: with the exception of the historical information contained in
this release, the matters described herein contain forward-looking
statements that involve risks and uncertainties that may individually or
mutually impact the matters herein described for a variety of reasons
that are outside the control of the Company, including, but not limited
to, its financial results, projected revenues, projected online
subscribers and other customers, estimated markets for its products, and
statements about achieving its other corporate and business development,
growth, commercialization, financial and staffing objectives. Readers
are cautioned not to place undue reliance on these forward-looking
statements as actual results could differ materially from the
forward-looking statements contained herein. Readers are urged to read
the risk factors set forth in the Company’s most recent filing on Form
S-1, annual report on Form 10-K, subsequent quarterly reports filed on
Form 10-Q and other filings made with the SEC. Copies of these reports
are available from the SEC’s website or without charge from the Company.

Contacts

Randy Berholtz
Innovus Pharma Investor Relations
Tel: +1 858
249 7865
[email protected]