Catheter Precision, Inc. (VTAK) - Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026. Catheter Precision, Inc. operates in two reportable segments: Cardiac Electrophysiology (medical devices including the VIVO System and LockeT) and Private Aviation (via the acquisition of Fly Flyte, Inc. "FLYTE"). The company completed the acquisition of 100% of FLYTE in March 2026, marking a strategic pivot to include private air charter services. The company is classified as a non-accelerated filer and a smaller reporting company.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Revenue | $432,000 | $143,000 |
| Gross Profit | $390,000 | $132,000 |
| Operating Loss | $(2,318,000) | $(3,575,000) |
| Net Loss | $(1,690,000) | $(4,045,000) |
| Net Loss per Share (Basic/Diluted) | $(1.39) | $(6.81) |
| Cash and Cash Equivalents (End of Period) | $441,000 | $450,000 |
| Working Capital | $(18.5 million deficit) | N/A |
| Accumulated Deficit | $(311.2 million) | $(296.4 million) |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased by 202% to $432,000, driven by the inclusion of FLYTE aviation services ($184,000) and growth in medical device sales (LockeT and VIVO).
- Acquisition Impact: The company acquired FLYTE in March 2026. This resulted in the recognition of $9.7 million in goodwill and $7.5 million in intangible assets. The acquisition also introduced significant new liabilities, including $6.5 million in short-term notes payable and $8.2 million in deferred consideration.
- Non-Cash Adjustments: The net loss was significantly impacted by non-cash items, including a $2.9 million gain from the change in fair value of deferred consideration and a $2.3 million loss from the change in fair value of the minority equity interest in FLYTE prior to full acquisition.
- Financing Activity: The company raised approximately $4.1 million in gross proceeds through private placements of common stock and Series C-1 Convertible Preferred Stock in February and March 2026.
Guidance, Outlook, Risks, and Contingencies
- Going Concern: Management has concluded there is substantial doubt about the company's ability to continue as a going concern for 12 months from the filing date. The company has an accumulated deficit of $311.2 million and a working capital deficit of $18.5 million.
- Liquidity Needs: The company expects to require additional capital to fund operations, debt service, and the growth of the aviation segment. It is actively pursuing equity and debt financing.
- Dilution Risk: The company has outstanding Series B, C-1, C-2, D, and J Convertible Preferred Stock. If converted at floor prices, these securities could result in extraordinary dilution, potentially reducing existing common stockholders' ownership to less than 4.4% (or 0.9% if all contingent rights are exercised).
- Debt Obligations: Several short-term notes are due within the next 12 months, including notes assumed in the FLYTE acquisition that are currently in default.
- Legal Contingencies: The company assumed an employment dispute with a former FLYTE employee, recording a $200,000 liability. It also settled a promissory note dispute for $300,000.
Investor Verification Checklist
- Capital Raise Status: Verify the status of the "Second Tranche" and "Third Tranche" closings for Series C-2 and C-3 preferred stock, which are subject to stockholder approval and registration statement effectiveness.
- Debt Maturity: Confirm the repayment or refinancing status of the "Assumed Notes" from FLYTE and the "March Bridge Note" due in May 2026.
- Conversion Triggers: Monitor the company's stock price relative to the $0.35 floor price for Series C and D preferred stock, as a waiver of this floor could trigger massive dilution.
- FLYTE Integration: Assess the operational performance of the FLYTE segment beyond the initial 22 days of contribution included in Q1 2026 results.
- Stockholder Approval: Track the outcome of the proposed reverse stock split and the issuance of shares exceeding 19.99% of outstanding common stock, which are conditions for further financing.