Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 30, 2026, for Corvex, Inc. (formerly Movano Inc.). The reporting period is defined by a material transformation in the company's business model. On March 19, 2026, Corvex completed a merger with Corvex Legacy Holdings, Inc. ("Corvex OpCo"), shifting its primary focus from a legacy healthcare wearable business to an AI cloud computing business specializing in GPU-accelerated infrastructure. On June 30, 2026, the company disposed of its legacy healthcare assets to settle a related-party bridge loan, effectively eliminating the "Connected devices and services" segment.
Key Financial Metrics
| Metric | Three Months Ended June 30, 2026 | Six Months Ended June 30, 2026 |
|---|---|---|
| Total Revenue | $3.8 million | $4.3 million |
| Net Loss | $(12.8) million | $(17.8) million |
| Loss from Operations | $(15.2) million | $(20.1) million |
| Adjusted EBITDA | $(3.2) million | $(4.8) million |
| Cash and Cash Equivalents | $21.7 million | $21.7 million (Ending Balance) |
| Net Cash Used in Operating Activities | N/A | $(9.6) million |
| Total Assets | $599.3 million | $599.3 million |
| Total Liabilities | $26.1 million | $26.1 million |
| Stockholders' Equity | $573.3 million | $573.3 million |
Note: Revenue is derived almost entirely from the newly acquired AI Platform and services segment. The legacy Connected devices segment generated negligible revenue prior to its disposal.
Material Changes vs. Prior Period
- Revenue Composition: Revenue increased from $103,000 in Q2 2025 to $3.8 million in Q2 2026. This is entirely attributable to the acquisition of Corvex OpCo. The legacy healthcare revenue stream was eliminated upon the asset transfer on June 30, 2026.
- Operating Expenses: Total operating expenses surged to $19.0 million in Q2 2026 from $3.4 million in Q2 2025. This increase is driven by the consolidation of Corvex OpCo's operations, significant stock-based compensation ($9.7 million for the quarter), and transaction costs related to the merger.
- Balance Sheet Transformation: Total assets grew from $5.6 million (Dec 31, 2025) to $599.3 million (June 30, 2026). This reflects the recognition of $519.3 million in goodwill and $15.0 million in intangible assets from the acquisition, alongside a cash balance increase to $21.7 million due to cash acquired in the business combination.
- Debt Settlement: The company settled a $1.5 million principal bridge loan (plus a $3.0 million premium) by transferring legacy assets to the lender. This transaction resulted in a non-operating gain on disposal of assets of $2.5 million.
Guidance, Outlook, and Risks
- Outlook: Management expects to continue incurring net losses as it invests in the development and expansion of its AI cloud computing business. The company believes its current cash position ($21.7 million) is sufficient to fund operations for at least the next twelve months.
- Capital Needs: Future funding requirements depend on infrastructure expansion and customer demand. The company may seek additional capital through equity or debt offerings. On August 3, 2026 (subsequent to the period end), the company secured a $7.5 million equipment financing facility for GPU servers.
- Risks and Contingencies:
- Internal Controls: The company disclosed that its disclosure controls and procedures were not effective as of June 30, 2026, due to material weaknesses in the control environment, IT general controls, and process-level controls.
- Liquidity: As a pre-revenue or early-revenue stage AI infrastructure company, the firm faces risks regarding its ability to raise additional capital on acceptable terms.
- Customer Concentration: Two customers accounted for 93% of revenue in the three months ended June 30, 2026 (65% and 28% respectively).
- Unusual Items: The $2.5 million gain on disposal of assets is a non-recurring item resulting from the debt-for-asset settlement of the legacy business.
Investor Verification Checklist
- Merger Accounting: Verify the preliminary purchase price allocation of the $582 million Corvex OpCo acquisition, specifically the valuation of goodwill ($519 million) and intangible assets.
- Stock-Based Compensation: Review the $11.9 million in stock-based compensation expense for the six months ended June 30, 2026, and the remaining unamortized expense of approximately $133 million.
- Internal Control Remediation: Assess the plan and timeline for remedying the material weaknesses in internal controls over financial reporting.
- Customer Concentration: Evaluate the risk associated with reliance on two customers for 93% of current revenue.
- Subsequent Financing: Confirm the terms and impact of the $7.5 million GPU Loan Agreement entered into on August 3, 2026.