VTAK

Business Context and Reporting Period

This Form 10-Q covers the quarterly period ended June 30, 2026, for Catheter Precision, Inc. (NYSE American: VTAK). The Company operates in two reportable segments: Cardiac Electrophysiology (medical devices including the VIVO System and LockeT) and Private Aviation (acquired via the purchase of Fly Flyte, Inc. ("FLYTE") in March 2026). The filing includes a Going Concern warning, stating there is substantial doubt about the Company's ability to continue operations for the next 12 months without additional capital.

Key Financial Metrics

Note: Revenue includes $0.749 million in service revenue from the new Private Aviation segment for the quarter, which had no prior year comparison.

Material Changes vs. Prior Period

• Revenue Growth: Total revenue increased from $0.212 million (Q2 2025) to $1.019 million (Q2 2026), driven primarily by the inclusion of FLYTE aviation services ($0.749 million) and growth in LockeT product sales.
• Operating Expenses: Selling, general, and administrative (SG&A) expenses rose to $3.911 million (Q2 2026) from $2.881 million (Q2 2025), largely due to professional fees and investor relations costs associated with the FLYTE acquisition and recent financings.
• Non-Operating Items: The Company recognized a $0.378 million unrealized gain on marketable securities (Volato/FLYX investment) and a $0.318 million gain from the change in fair value of deferred consideration related to the FLYTE acquisition. Conversely, a $0.105 million loss on debt extinguishment was recorded.
• Balance Sheet: Total assets increased from $15.86 million (Dec 31, 2025) to $36.87 million (June 30, 2026), reflecting the acquisition of FLYTE (Goodwill of $12.96 million) and new intangible assets.

Guidance, Outlook, and Risks

• Liquidity Crisis: Management explicitly states that cash on hand ($0.6 million) is insufficient to fund operations for the next 12 months. The Company is actively pursuing equity and debt financing, strategic transactions, or asset sales to meet obligations.
• Debt Obligations: Significant short-term debt is due within 12 months, including Bridge Notes (some in default as of June 30), notes payable to related parties, and assumed notes from the FLYTE acquisition. Failure to refinance or repay could lead to suspension of operations.
• Dilution Risk: The Company has outstanding Series C and Series D Convertible Preferred Stock with variable conversion prices. On August 10, 2026 (subsequent to period end), the Company waived the $0.35 floor price, reducing the conversion price to $0.23. This could result in extraordinary dilution, potentially reducing existing common stockholders' ownership to less than 13% (or 3.6% if all contingent rights are exercised).
• Acquisition Integration: The Company is integrating FLYTE's aviation operations, which face risks related to fuel costs, pilot availability, and third-party operator reliance.

Investor Verification Checklist

• Capital Raise Status: Verify the success of the Series C-3 and C-4 preferred stock issuances (closed in July/August 2026) and whether proceeds were sufficient to repay the defaulted Bridge Notes.
• Debt Default Status: Confirm the current status of the Bridge Notes and Assumed Notes that were in default as of June 30, 2026, and any subsequent settlements or extensions.
• Dilution Impact: Calculate the fully diluted share count assuming conversion of all Series C and D preferred stock at the new $0.23 conversion price to assess the impact on common equity value.
• FLYTE Performance: Review the standalone financial performance of the FLYTE segment to determine if it is generating positive cash flow to offset the Company's operating losses.
• Going Concern Resolution: Monitor for any announcements regarding a definitive merger, asset sale, or significant equity offering that would resolve the substantial doubt about the Company's ability to continue as a going concern.