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Applied UV Reports Q1, 2023 Financial Results

Q1 2023 Revenue Increases 217% to $10.7 Million

Applied UV, Inc. (NasdaqCM: AUVI) (“Applied UV” or the “Company”), a global leading provider of patented, scientifically and clinically proven surface and air pathogen elimination and disinfection technologies (fixed, mobile, and HVAC), LED lighting products and premium hotel furnishings, announces today its financial results for Q1 2023.

Recent Business Highlights

  • Q1 2023 Revenue of $10.7M an increase of 217% over Q1 2022
  • Completed the 6th strategic acquisition in 18 months doubling the size of the Company
  • Investing in Machine Learning and AI systems to enhance our IAQ and Food Security technologies
  • PURO patent pending next generation FighterFlex pathogen elimination technology for facilities HVAC systems expected to launch in late Q3 allowing for international cross market sales
  • Addressing global push to improve Indoor Air Quality (IAQ) and Food Security technologies
  • Crossing the Bridge to the Internet of Things (“IoT”) - Company expects to incorporate and launch PURONet indoor air monitoring software across all air disinfection devices within the Company’s portfolio
  • Launched “Farm to Table” Food Preservation and Security R&D Program addressing the UN Chief Economist estimated Global $400 billion a year crop loss due to spoilage
  • Expanded Strategic Relationship with Canon to include Canon Financial Services with end user leasing programs
  • Cross Marketing Sales Initiatives beginning to ramp with Multi-million Dollar Order from major Real Estate Developer
  • Global distribution reach now includes 89 dealers and distributors in 52 countries, 47 manufacturing representatives and 19 U.S. based internal sales representatives
  • Launched a research collaboration with Johnson Controls, USHIO and Applied UV subsidiary Puro Lighting to study the efficacy and safety of filtered far UV-C disinfection technology (222 Nm UV}

Max Munn, founder and recently appointed CEO of Applied UV, Inc., commented, “Q1 2023 was a transformative and pivotal quarter for Applied UV. Cross-market selling opportunities between MunnWorks and LED Supply Co are beginning to ramp as a result of the acquisition, and we fully expect to see further expansion throughout the remainder of the year. Our expectation for realizing synergies across the entire business segments remains intact. Our collaboration with Canon is gaining momentum as we just completed the first lease for one of our customers, and we expect to announce additional strategic initiatives expanding our global reach and market share in food preservation in Q3 2023. Through these strategic transactions and partnerships, we have positioned the Company as a fully integrated solutions provider offering total air and surface pathogen elimination platforms and specialty LED lighting and custom premium furnishings for multiple sectors with total top line revenue expected of approximately $45-50 million for 2023.

Munn continued, “As we stated in Q4 2022, we recognized the accelerating shift in demand for a complete “systems within a system” solution that plays a more permanent role in improving Indoor Air Quality (IAQ), standards that were outlined by the U.S. Government last year. Increasingly, enterprises are seeking end-to-end systems across entire facilities that include software monitoring capabilities. Accordingly, we pivoted our marketing, merger and acquisition strategy, and research and development activities as well as accelerated our IoT development, manufacturing processes and next generation product development roadmap.”

Munn further stated, “Hospitality and LED Supply Co continues to rebound rapidly as hotels and developers resume schedules of new construction, project and building upgrades, remodels and repair and maintenance activities that were postponed due to the pandemic and subsequent closing of the U.S. economy. Hotels and developers are seeking onshore manufacturing alternatives to mitigate supply chain and geopolitical risks, especially in China, and we have established well-performing manufacturing capabilities that can meet this demand. Our acquisition of VisionMark further enables us to design-assist, fabricate, deliver and install high-end hotel living space furnishings and expands our reach into the luxury hospitality market, new construction multi-family development projects and retrofits beyond our core mirror business.”

Munn concluded, “Integration of the six companies we acquired continues, and we are beginning to experience the expected cost savings across all our divisions. Looking ahead in pathogen elimination and disinfection, we are building a pipeline of new opportunities across a number of verticals including, food preservation, cannabis, wineries and education, which we believe will drive future growth and improved financial results.”


The Company has three reportable segments: the design, manufacture, assembly and distribution of disinfecting pathogen elimination systems for use in food preservation, healthcare, hospitality, education and public spaces, cannabis, correctional facilities, and commercial, municipal and residential markets (Disinfection/Healthy Building Technologies segment); the manufacture of fine mirrors and custom furniture specifically for the hospitality industry (Hospitality segment); and the Corporate Segment, which includes expenses primarily related to corporate governance, such as board fees, legal expenses, audit fees, executive management, and listing costs.

Q1 2023 Summary Financial Results

Net Sales

Net sales of $10.7 million represented an increase of $7.3 million, or 217.5% for the three months ended March 31, 2023, as compared to net sales of $3.4 million for the three months ended March 31, 2022. This increase was primarily attributable to the Hospitality segment, which increased $4.7 million, largely as a result of the strategic acquisition on March 25, 2022, of the operations of VisionMark in Brooklyn, NY, which contributed $3.9 million of the increase, and also due to the organic growth of our legacy MunnWorks business, which contributed $0.8 million of the increase. The Disinfection/Healthy Building Technologies segment increased $2.6 million, primarily due the acquisition of PURO Lighting and LED Supply Co. on January 26, 2023.

Gross Profit

Gross profit increased $0.8 million from $1.1m, or 34% vs. sales, for the three months ended March 31, 2022, to $1.9m, or 18% vs. sales for the three months ended March 31, 2023. The decrease from 34% to 18% was driven primarily by the higher sales mix of our Hospitality segment as compared to the same period last year. For Q1 2023, Hospitality accounted for 57% of total sales for the quarter as compared to 42% in the prior year quarter. The last of the lower margin projects that we acquired that were in process from the VisionMark asset acquisition have been substantially completed. Additionally, Q1 2023 was impacted by “one-time” lower margins in our Disinfection/Healthy Building Technologies segment as we sold approximately half of our consumer Airocide inventory at special discounted pricing.

Operating Expenses

Selling, General, and Administrative – S,G&A costs for the three months ended March 31, 2023, increased to $5.3 million as compared to $3.1 million for the three months ended March 31, 2022. This increase of $2.2 million was driven primarily by the expansion of the Disinfection/Healthy Building Technologies segment with the acquisitions of PURO Lighting and LED Supply Co. These acquisitions accounted for $1.4 million of the increase. In Corporate, legal expenses increased $0.6 million primarily as the result of a “one-time” arbitration case.

Operating Loss

The Company recorded an operating loss of $3.5 million for the three months ended March 31, 2023, compared to an operating loss of $3.1 million for the three months ended March 31, 2022. The increase of $0.4 million in the operating loss was primarily due to the decrease in the gross profit percentage year over year as explained above, and the impairment charge of $1.1 million that was incurred last year. On a percentage basis, the operating loss improved to 33% in the first quarter of 2023 as compared to 94% in the first quarter of 2022.

Other Income/Expense

The Company incurred interest expense of $0.4 million due to the borrowings of Streeterville Capital and Pinnacle Bank., primarily to help fund the acquisitions of PURO Lighting and LED Supply Co. and to also fund additional working capital requirements.

The Company incurred a non-cash loss on change in fair market value of contingent consideration of $0.6 million because of the make whole provision within the PURO Lighting and LED Supply Co. merger agreement. The change related to the decrease in our stock price from the date of acquisition of January 26, 2023, as compared to March 31, 2023.

Net Loss

The Company recorded a net loss of $4.5 million for the three months ended March 31, 2023, compared to a net loss of $1.6 million for the three months ended March 31, 2022. The increase of $2.9 million in the net loss was mainly due to the $1.4 million increase in S,G&A costs incurred as a result of the acquisitions of PURO Lighting and LED Supply Co. in support of the expansion to the Disinfection/Healthy Building Technologies segment; the $0.6 million increase in Corporate legal expenses largely as a result of a “one-time” arbitration case and the non-cash loss on change in fair market value of contingent consideration of $0.6 million because of the make whole provision within the PURO Lighting and LED Supply Co. merger agreement (see comment above in Other Income/Expense).


On July 1, 2022, the Company filed a $50,000,000 mixed use shelf registration (Form S‑3) and entered into an At The Market sales agreement ("ATM") with Maxim Group, LLC for a total of $9,000,000, as a readily available source of funding if needed. During the year ended December 31, 2022, the Company sold 804,811 ATM shares through the sales agent with gross proceeds of $964,083. In connection with the sale of these ATM Shares, the compensation paid by the Company to the Sales Agent was $28,922. As of March 31, 2023, an additional 1,764,311 shares have been sold for gross proceeds of $2,314,860, and the compensation paid by the Company to the Sales Agent was $69,446, leaving a balance of $5,721,057 on the ATM facility. The shelf registration statement will expire on July 12, 2025.

The Company has filed a Registration Statement with the Securities and Exchange Commission with its plans to commence a public offering of its securities for an amount that satisfies the Company’s’ current working capital needs.

The Company believes our sources of liquidity and capital will be sufficient to finance our continued operations and growth strategy.

Conference Call/Webcast Information

Applied UV's management team will host an investor conference call and live webcast on May 23, 2023, at 9:00 am ET. Investors can access the live webcast via a link on Applied UV's web site or at . For those planning to participate on the call, please dial +1-888-506-0062 (for domestic calls), or +1-973-528-0011 (for international calls), passcode 837349.

A replay of the conference call will be available online on the Applied UV web site, and a dial-in replay will be available for one week following the call at +1-877-481-4010 (for domestic calls) or +1-919-882-2331 (for international calls), replay passcode 48458.

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About Applied UV

Applied UV, Inc. (“AUVI”) provides proprietary surface and air pathogen elimination and disinfection technology focused on Improving Indoor Air Quality (IAQ), specialty LED lighting and luxury mirrors and commercial furnishings all of which serves clients globally in both the commercial and retail segments.

Our products address the needs in the healthcare, hospitality, food preservation, cannabis, education, winery vertical markets. The Company has established strategic manufacturing partnerships and alliances including Canon Virginia Inc, Acuity Brands Lighting, Johnson Controls International, Siemens, W.W. Grainger, and a global network of 89 dealers and distributors in 52 countries, offering a complete suite of products through its two wholly owned subsidiaries - SteriLumen, Inc. (“SteriLumen”) and Munn Works, LLC (“MunnWorks”). SteriLumen owns brands and markets a portfolio of clinically proven products utilizing advanced UVC Carbon, Broad Spectrum UVC LED’s, Photo-catalytic oxidation (PCO) pathogen elimination technology, branded Airocide ™, Scientific Air™, Airoclean™ 420, Lumicide™, PUROHealth, PURONet, and LED Supply Co. SteriLumen’s proprietary platform suite of patented, surface and air technologies offers, the most complete pathogen disinfection platform including mobile, fixed and HVAC systems and software solutions interconnecting its entire portfolio suite into the IoT allowing customers to implement, manage and monitor IAQ measures recommended by the EPA across any enterprise. SteriLumen’s Lumicide™ platform applies the power of ultraviolet light (UVC) to destroy pathogens automatically, addressing the challenge of healthcare-acquired infections (HAIs) in several patented designs for infection control in healthcare. LED Supply Co, is a full-service, wholesale distributor of LED lighting and controls used throughout facilities in North America.

MunnWorks manufactures and sells custom luxury and backlit mirrors, and conference room and living spaces furnishings.

Our global list of Fortune 100 end users including Kaiser Permanente, NY Health+Hospitals, MERCY Healthcare, Baptist Health South Florida, New York City Transit, Samsung, JB Hunt, Boston Red Sox’s Fenway Park, JetBlue Park, France’s Palace of Versailles, Whole Foods, Del Monte Foods, U.S. Department of Veterans Affairs, Marriott, Hilton, Four Seasons and Hyatt, and more. For information on Applied UV, Inc., and its subsidiaries, please visit

Forward-Looking Statements

The information contained herein may contain “forward‐looking statements.” Forward‐looking statements reflect the current view about future events. When used in this press release, the words “anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,” “plan,” or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. Such statements include, but are not limited to, statements contained in this press release relating to the view of management of Applied UV concerning its business strategy, future operating results and liquidity and capital resources outlook. Forward‐looking statements are based on the Company’s current expectations and assumptions regarding its business, the economy and other future conditions. Because forward–looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. The Company’s actual results may differ materially from those contemplated by the forward‐looking statements. They are neither statements of historical fact nor guarantees of assurance of future performance. We caution you therefore against relying on any of these forward‐looking statements. Factors or events that could cause the Company’s actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company cannot guarantee future results, levels of activity, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward‐looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.

Applied UV, Inc. and Subsidiaries

Consolidated Balance Sheets

As of March 31, 2023 and December 31, 2022











Current Assets



Cash and cash equivalents







Accounts receivable, net of allowance for doubtful accounts







Costs and estimated earnings in excess of billings







Inventory, net







Vendor deposits







Prepaid expense and other current assets







Total Current Assets










Property and equipment, net of accumulated depreciation







Other assets














Other intangible assets, net of accumulated amortization







Right of use assets







Total Assets







Liabilities and Stockholders' Equity



Current Liabilities



Accounts payable and accrued expenses







Contingent consideration







Deferred revenue







Due to landlord







Warrant liability







Financing lease obligations







Operating lease liability







Notes payable, net







Total Current Liabilities







Long‑Term Liabilities



Due to landlord ‑ less current portion







Notes payable, net ‑ less current portion







Financing lease obligations ‑ less current portion







Operating lease liability ‑ less current portion







Total Long‑Term Liabilities










Total Liabilities










Redeemable Preferred Stock



Preferred Stock, Series B Cumulative Perpetual, $0.0001 par value, 1,250,000

shares authorized, 1,250,000 shares issued and outstanding as of March 31, 2023 and no shares issued and outstanding as of December 31, 2022





Preferred Stock, Series C Cumulative Perpetual, $0.0001 par value, 2,500,000

shares authorized, 399,996 shares issued and outstanding as of March 31, 2023 and no shares issued and outstanding as of December 31, 2022





Total Redeemable Preferred Stock











Preferred Stock, Series A Cumulative Perpetual, $0.0001 par value, 1,250,000

shares authorized, 552,000 shares issued and outstanding as of March 31, 2023 and December 31, 2022.





Preferred Stock, Series X, $0.0001 par value, 10,000 shares authorized,

10,000 shares issued and outstanding as of March 31, 2023 and December 31, 2022 respectively





Common Stock $0.0001 par value, 150,000,000 shares authorized 19,370,758 shares issued and 19,257,273 shares outstanding as of March 31, 2023 and 13,676,450 shares issued and 13,562,965 shares outstanding as of December 31, 2022







Additional paid‑in capital







Treasury stock at cost, 113,485 shares, respectively







Accumulated deficit







Total Equity










Total Liabilities, Redeemable Preferred Stock and Stockholders' Equity







The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

Applied UV, Inc. and Subsidiaries

Consolidated Statements of Operations

For the Three Months Ended March 31, 2023 and 2022











Net Sales










Cost of Goods Sold










Gross Profit










Operating Expenses



Research and development







Selling General and Administrative Expenses







Loss on impairment of goodwill and intangibles







Total Operating Expenses










Operating Loss










Other Income (Expense)



Change in Fair Market Value of Warrant Liability







Interest expense







Loss on change in Fair Market Value of Contingent Consideration







Gain on Settlement of Contingent Consideration







Total Other Income (Expense)










Loss Before Provision for Income Taxes










Benefit from Income Taxes










Net Loss










Net Loss attributable to common stockholders:



Dividends to preferred shareholders







Net Loss attributable to common stockholders










Basic and Diluted Loss Per Common Share







Weighted Average Shares Outstanding ‑

basic and diluted
















The accompanying notes are an integral part of these unaudited interim consolidated financial statements.


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