VTAK

Business Context and Reporting Period

Catheter Precision, Inc. (VTAK) filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2025. The Company operates in the cardiac electrophysiology (EP) sector, focusing on the design, manufacture, and sale of medical technologies. Its primary products are the VIVO System (non-invasive 3D cardiac mapping) and LockeT (suture retention device). The Company also operates a private aviation charter business, FLYTE, acquired in early 2026, to support its capital structure.

Key Financial Metrics

Liquidity Note: As of March 18, 2026, the Company reported cash and cash equivalents of approximately $548,000. Management has expressed substantial doubt about the Company's ability to continue as a going concern without additional financing.

Material Changes vs. Prior Period

• Revenue Growth: Revenue increased by 95% ($399,000) primarily driven by a $408,000 increase in LockeT sales. This was partially offset by a $12,000 decrease in VIVO System sales due to reduced commercial efforts in the EU.
• Impairment Charge: The Company recorded a non-cash impairment charge of approximately $7.0 million related to VIVO intangible assets, as the asset group was deemed not recoverable.
• Acquired R&D Expenses: The Company incurred $1.97 million in acquired in-process research and development (IPR&D) expenses related to the Cardionomic (CPNS System) and PeriKard asset acquisitions.
• Debt Extinguishment: A loss on debt extinguishment of $3.26 million was recorded, primarily due to the exchange of $2.7 million in royalty obligations for Series J Convertible Preferred Stock.
• Stock Split: A 1-for-19 reverse stock split was effected on August 15, 2025. All share and per-share data have been restated.

Guidance, Outlook, and Risks

Outlook and Strategy: The Company aims to establish VIVO as an integral tool for cardiac electrophysiologists and LockeT as a standard for wound closure. To fund operations, the Company has adopted a holding company structure to house the FLYTE aviation business. Management expects operating losses and negative cash flows to continue unless sales increase sufficiently to cover expenses.

Capital Needs: The Company believes its current cash on hand is insufficient to fund operations for the next 12 months. It expects to complete an additional financing within the next 1 to 2 months. Subsequent to year-end, the Company raised approximately $4.1 million in private placements (February and March 2026) and acquired FLYTE.

Key Risks:

• Going Concern: Auditors have issued an explanatory paragraph regarding substantial doubt about the Company's ability to continue as a going concern.
• Customer Concentration: Three customers represented approximately 50% of total revenues in 2025.
• Regulatory: Expansion of VIVO indications (e.g., for ischemic hearts) requires additional FDA clearances.
• Royalty Obligations: Significant royalty agreements on LockeT sales reduce future profits, though a portion was exchanged for equity in late 2025.

Investor Verification Checklist

• Cash Runway: Verify the status of the anticipated financing needed within 1-2 months to avoid suspension of operations.
• FLYTE Acquisition: Confirm the closing of the FLYTE acquisition and the terms of the $5.0 million promissory note issued as consideration.
• LockeT Commercialization: Monitor LockeT sales growth to ensure it can offset the decline in VIVO revenue and cover operating costs.
• Debt Maturities: Review the schedule for convertible notes payable due in September 2026 and related party notes due in 2026-2029.
• Dilution: Assess the impact of outstanding warrants, options, and convertible preferred stock (Series B, C, J, and D) on common shareholder equity.