Share Dilution

Form 424B5 EDAP TMS SA

INTERIM FINANCIAL RESULTS

On August 24, 2022, EDAP released financial information for the second quarter and first half of 2022. The financial information below has not been audited or subject to a limited review by our auditors.

Second quarter ended June 30, 2022 compared to second quarter ended June 30, 2021

Total revenue for the second quarter of 2022 was 14.2 million, an increase of 36.7% compared to the total turnover of 10.4 million for the same period in 2021. Total HIFU Division revenue for the second quarter of 2022 was 3.0 million, an increase of 49.3% compared to 2.0 million for the second quarter of 2021. The total revenue of the ESWL division (including lithotripsy activities) for the second quarter of 2022 was 3.6 million, an increase of 55.7% compared to 2.3 million for the second quarter of 2021. The total turnover of the Distribution division for the second quarter of 2022 is 7.6 million, an increase of 25.5% compared to 6.1 million for the second quarter of 2021.

Gross profit for the second quarter of 2022 was 6.2 million, against 4.2 million for the period a year ago. Gross profit margin on net sales was 43.8% in the second quarter of 2022, compared to 40.7% a year ago. The increase in gross margin year-on-year is explained by the higher effect of sales on fixed costs.

Operating expenses were 6.6 million for the second quarter of 2022, compared to 4.6 million for the same period in 2021.

The operating loss for the second quarter of 2022 was 0.4 million, against an operating loss of 0.4 million in the second quarter of 2021.

The net result for the second quarter of 2022 was 1.8 million, or 0.05 per diluted share, compared to a net loss of 0.4 million, or 0.01 per diluted share over the prior year period.

Half-year ended June 30, 2022

Total revenue for the six months ended June 30, 2022 was 27.1 million, an increase of 31.5% compared to the total turnover of 20.7 million for the same period in 2021. Total HIFU Division revenue for the six months ended June 30, 2022 was 6.8 million, an increase of 78.8% compared to 3.8 million for the six months ended June 30, 2021. Total ESWL Division revenue for the six months ended June 30, 2022 was 5.8 million, an increase of 11.6% compared to 5.2 million for the six months ended June 30, 2021. Total sales for the Distribution division for the six months ended June 30, 2022 were 14.6 million, an increase of 24.8% compared to 11.7 million for the six months ended June 30, 2021.

Gross profit for the six months ended June 30, 2022 was 12.0 million, compared to 8.6 million for the period a year ago. Gross profit margin on net sales was 44.0% for the six months ended June 30, 2022, compared to 41.6% for the comparable period in 2021. The increase in gross margin year-over-year is due to the increase in the effect of sales on fixed costs, particularly in the HIFU division.

Operating expenses were 12.5 million for the six months ended June 30, 2022, compared to 8.8 million for the same period in 2021.

The operating loss for the six months ended June 30, 2022 was 0.5 million, against an operating loss of 0.2 million for the six months ended June 30, 2021.

Net profit for the six months ended June 30, 2022 was 2.2 million, or 0.06 per diluted share, compared to net income of 0.4 million, or 0.01 per diluted share over the prior year period.

As of June 30, 2022, EDAP held cash and cash equivalents of 46.3 million, against 47.2 million as of December 31, 2021.