EX-99.1 2 ex99-1.htm PRESS RELEASE Ex 99-1
 
Exhibit 99.1
 
 
Innovus Pharma Reports New Quarterly Revenue Record of $7.3 million for the Second Quarter 2018 and Expands to Canadian Market
Beyond Human™ Sales & Marketing Strategy Results in 258.7% Net Revenue Growth
Compared to Same Period in 2017
 
SAN DIEGO, August 14, 2018 – Innovus Pharmaceuticals, Inc. (“Innovus Pharma” or the “Company”) (OTCQB: INNV), today reported results for the second quarter 2018.
 
Notable selected highlights from the Second Quarter of 2018
 
■
Revenues of $7.3 million, up 259% year-over-year and 61% from prior quarter.
 
■
Gross margin remains consistent at 81% from prior quarter.
 
■
Net loss remains consistent at $1.8 million from prior quarter even with significant investment in marketing and 61% increase in net revenues from prior quarter
 
■
Monthly subscription revenue increases 25% to $258,000.
 
■
General and Administrative expenses declined to 26% as a percentage of sales compared to 58% in the prior year second quarter and 37% in the previous quarter.
 
■
Fourth straight quarter of revenue growth.
 
■
Added four products: Apeaz®, Androferti®, UriVarx® and ProstaGorx® to two large US and Canadian retail chains.
 
■
Successfully expanded our Beyond Human™ sales and marketing platform to Canada representing 14.3% of total net sales.
 
■
Expanded our Beyond Human™ sales and marketing platform to direct mail including slim jim brochures, retention postcards, fulfillment cross ordered pieces and tear-sheets resulting in 84% of total net sales.
 
■
Received approval to expand our Amazon® e-commerce store to five main markets in Europe (France, UK, Germany, Italy and Spain).
 
■
Received update from our Fluticare® initial manufacturing partner that they expect FDA approval of the ANDA in Q4 2018.
 
■
Engaged in licensing discussions for exclusive U.S. and Canada rights to a U.S. Abbreviated OTC New Drug Application and the equivalent Canadian dossier for Tadalafil (sold under the trademark Cialis® in the US) for a potential switch to OTC by the FDA. The Cialis® trademark is owned by Eli Lilly and Company.
 
■
Completed build-out of internally managed fulfillment center.
 
 
 
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“We continue to execute on our plan towards our path to profitability. This is the second quarter where our revenues came out higher than our original guidance range, a testament to the strength of our sales and marketing efforts and our deep and unique portfolio of products. The relentless effort by the Company to continue its growth resulted in second quarter net revenues of $7.3 million, another record quarter for the Company,” stated Bassam Damaj, President and Chief Executive Officer of Innovus Pharma.
 
“We now have a proven business model allowing us to continuously add new products and expand into new countries, while benefiting from the scale of efficiencies to reduce our cost of doing business to continue towards our goal of profitability. I am thrilled and looking forward to updating our shareholders on our earnings call on more details and on our upcoming expected successes. On the basis of this quarterly net revenues and for the first six months of 2018, our net revenue is $11.9 million, which is already $3 million more than what the Company achieved for the entirety of 2017. Thus, we are increasing our current annual net revenue guidance for 2018 to $23 million,” continued Dr. Damaj.
 
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: 0561047. 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: 10123041. The replay will be available shortly after the end of the conference call.
 
 
 
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Consolidated Statements of Operations
 
 
 
 
 
 
 
 
 
Three months ended
 
 
June 30,
 
 
 
2018
 
 
2017
 
 
(unaudited)
Net revenue:
 
 
 
 
 
 
  Product sales, net
 $6,970,312 
 $2,031,157 
  License revenue
  2,577 
  7,500 
  Service revenue
  155,648 
  - 
  Cooperative marketing revenue
  183,636 
  - 
    Total net revenue
  7,312,173 
  2,038,657 
 
    
    
Operating expense:
    
    
  Cost of product sales
  1,338,950 
  408,579 
  Research and development
  22,605 
  15,063 
  Sales and marketing
  5,528,886 
  1,555,736 
  General and administrative
  1,919,301 
  1,185,435 
    Total operating expense
  8,809,742 
  3,164,813 
 
    
    
Loss from operations
  (1,497,569)
  (1,126,156)
 
    
    
Other income and (expense):
    
    
  Interest expense
  (325,982)
  (110,130)
  Loss on extinguishment of debt
  (38,587)
  - 
  Other income (expense), net
  266 
  (206)
  Fair value adjustment for contingent consideration
  21,644 
  98,979 
  Change in fair value of derivative liabilities
  - 
  3,463 
    Total other expense, net
  (342,659)
  (7,894)
 
    
    
Net loss
  (1,840,228)
  (1,134,050)
 
    
    
Net loss per share of common stock – basic and diluted:
 $(0.01)
 $(0.01)
 
    
    
Weighted average number of shares of common stock outstanding – basic and diluted
  205,106,912 
  159,997,395 
 
 
 
 
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Consolidated Statements of Operations
 
 
 
Six months ended
 
 
 
June 30,
 
 
 
2018
 
 
2017
 
 
 
(unaudited)
 
Net revenue:
 
 
 
 
 
 
  Product sales, net
 $11,512,338 
 $4,208,447 
  License revenue
  5,155 
  7,500 
  Service revenue
  155,648 
  - 
  Cooperative marketing revenue
  183,636 
  - 
    Total net revenue
  11,856,777 
  4,215,947 
 
    
    
Operating expense:
    
    
  Cost of product sales
  2,203,045 
  849,055 
  Research and development
  33,892 
  18,246 
  Sales and marketing
  8,830,670 
  3,243,087 
  General and administrative
  3,615,322 
  2,889,098 
    Total operating expense
  14,682,929 
  6,999,486 
 
    
    
Loss from operations
  (2,826,152)
  (2,783,539)
 
    
    
Other income and (expense):
    
    
  Interest expense
  (567,870)
  (667,609)
  Loss on extinguishment of debt
  (294,272)
  (304,828)
  Other income (expense), net
  375 
  (822)
  Fair value adjustment for contingent consideration
  18,799 
  126,154 
  Change in fair value of derivative liabilities
  - 
  (48,193)
    Total other expense, net
  (842,968)
  (895,298)
 
    
    
Net loss
  (3,669,120)
  (3,679,837)
 
    
    
Net loss per share of common stock – basic and diluted:
 $(0.02)
 $(0.02)
 
    
    
Weighted average number of shares of common stock outstanding – basic and diluted
  196,070,469 
  147,617,064 
 
 
 
 
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Condensed Consolidated Balance Sheet Data
 
 
 
June 30, 2018
 
 
  1 
Assets
    
  Cash
 $1,614,495 
  Accounts receivable, net
  287,350 
  Prepaid expenses and other current assets
  693,930 
  Inventories
  2,229,183 
  Intangible assets and other non-current assets
 5,110,277
   Total assets
 $9,935,235 
Liabilities & Stockholders' Equity
    
  Accounts payable & accrued liabilities
 $3,262,213 
  Total accrued compensation
  1,973,449 
  Deferred revenue and customer deposits
  97,950 
  Accrued interest payable
  22,168 
  Short-term loans payable
  132,197 
  Notes payable and non-convertible debenture, net of discount
  1,816,396 
  Total contingent consideration
  1,460,203 
  Total stockholders' equity
  1,170,659 
   Total liabilities & stockholders' equity
 $9,935,235 
 
1
The Condensed Consolidated Balance Sheet Data has been derived from the audited consolidated financial statements as of that date.
 
 
 
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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.fluticare.com; www.allervarx.com; and www.apeaz.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.
# # #
 
For more information, please contact:
 
Randy Berholtz
Innovus Pharma Investor Relations
Tel: +1 858 249 7865
ir@innovuspharma.com
 
 
 
 
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