SAN FRANCISCO – Tivic Health Systems Inc. (NASDAQ: TIVC) has been granted three new patents by the United States Patent and Trademark Office (USPTO) and the European Patent Office (EPO). These patents cover advancements in the company's microcurrent stimulation devices used for health treatments.
The US patent 12,011,592 and its European counterpart EP3615133 are focused on an adaptive trigger for microcurrent stimulation devices. This innovation allows the devices to identify optimal treatment points and initiate a treatment mode, which can be programmed to enhance device performance and user convenience.
Additionally, the European Patent EP3615134, titled "Sinus Treatment Device With Adaptive Circuit," safeguards the methods and devices that dynamically adjust stimulation voltage during treatment. This feature is designed to personalize the treatment experience, maximizing comfort and device effectiveness.
Blake Gurfein, Chief Scientific Officer of Tivic Health, emphasized the significance of these patents, stating that the adaptive design and personalization of treatment parameters are hallmarks of the company's intellectual property. These features contribute to the efficacy and user-friendliness of their product lineup.
Tivic Health is known for its ClearUP device, an FDA-approved, handheld bioelectronic sinus treatment device that has garnered recognition for its clinical efficacy and is recommended by doctors. It is available through online retailers and commercial distributors.
Tivic Health continues to focus on the development of treatments for various conditions, including epilepsy, post-traumatic stress disorder, and ischemic stroke.
Not long ago, Tivic Health Systems, Inc. has been in the headlines for a couple of significant events. The company has received a non-compliance notice from the Nasdaq Stock Market LLC due to its common stock closing bid price falling below $1.00 per share for 33 consecutive business days. Despite this, the company's stock remains listed on the Nasdaq Capital Market and has been given until December 26, 2024, to meet the minimum bid price requirement.
Moreover, Tivic Health has also announced the terms for its public offering aimed at raising approximately $4 million. The offering consists of around 4.7 million shares of common stock, accompanied by Series A and Series B warrants for additional shares, each priced at $0.85. Maxim (NASDAQ:MXIM) Group LLC is acting as the sole placement agent for this transaction, which is expected to close around May 13, 2024, subject to standard closing conditions.
InvestingPro Insights
Amidst the excitement of Tivic Health Systems Inc.'s (NASDAQ: TIVC) recent patent approvals, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Tivic Health's market capitalization stands at a modest 2.13 million USD, reflecting the size and growth stage of the company. The firm's revenue for the last twelve months as of Q1 2024 was reported at 1.13 million USD, indicating challenges in the highly competitive bioelectronics field, as this represents a decrease of 36.58% in revenue growth.
The company's financial metrics also reveal a negative P/E ratio of -0.27, which may raise concerns about profitability, especially since analysts do not anticipate the company will be profitable this year, as indicated by one of the InvestingPro Tips. This is further compounded by a significant cash burn rate, another critical point highlighted by InvestingPro. On the flip side, Tivic Health's liquid assets do exceed its short-term obligations, providing some financial cushioning as it navigates through its growth phase.
Investors should also note the stock's high volatility, a trait that has been consistent over time, as evidenced by a 69.48% drop in the 3-month price total return. Such volatility could be a double-edged sword, offering opportunities for high-risk tolerant investors while presenting a cautionary tale for those seeking more stable investments.
For those looking to delve deeper into the financial intricacies of Tivic Health Systems Inc., there are additional InvestingPro Tips available that could provide further insights into the company's financial landscape and stock performance. Interested investors can apply the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, which includes access to these valuable tips and more.
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