PART I. FINANCIAL INFORMATION FINANCIAL STATEMENTS Presents Catheter Precision's unaudited condensed consolidated financial statements as of June 30, 2025, detailing financial position and performance Condensed Consolidated Balance Sheets Total assets decreased to $25.6 million while liabilities rose to $19.0 million, leading to a significant decline in stockholders' equity to $6.5 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $838 | $2,873 | | Total current assets | $2,046 | $3,292 | | Intangible assets, net | $23,252 | $24,274 | | TOTAL ASSETS | $25,563 | $27,770 | | Liabilities & Equity | | | | Total current liabilities | $4,642 | $2,230 | | Total liabilities | $19,014 | $16,013 | | Total stockholders' equity | $6,549 | $11,757 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $25,563 | $27,770 | Condensed Consolidated Statements of Operations Q2 2025 revenues doubled to $212 thousand, yet increased operating expenses and $1.8 million acquired R&D led to a $5.1 million net loss Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $212 | $93 | $355 | $175 | | Gross profit | $198 | $77 | $330 | $154 | | Total operating expenses | $4,884 | $2,794 | $8,591 | $5,487 | | Operating loss | $(4,686) | $(2,717) | $(8,261) | $(5,333) | | Net loss attributable to Catheter Precision, Inc. | $(5,109) | $(4,220) | $(9,154) | $(6,895) | | Net loss per share, basic and diluted | $(0.38) | $(5.57) | $(0.74) | $(9.19) | Condensed Consolidated Statements of Stockholders' Equity Stockholders' equity declined from $11.8 million to $6.5 million due to a $9.5 million net loss, partially offset by capital raising efforts - Total stockholders' equity decreased by $5.2 million in the first six months of 2025, from $11.8 million to $6.5 million15 - The decrease in equity was mainly due to a net loss of $9.5 million, partially offset by proceeds from stock issuances, including a PIPE financing ($2.0M), an ATM offering ($1.6M), and stock issued for asset acquisitions ($0.4M)15 Condensed Consolidated Statements of Cash Flows Operating activities used $4.6 million cash, offset by $2.6 million from financing, resulting in a $2.0 million decrease in cash, ending at $0.8 million Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(4,601) | $(3,639) | | Net cash used in investing activities | $(23) | $(67) | | Net cash provided by financing activities | $2,589 | $157 | | NET CHANGE IN CASH AND CASH EQUIVALENTS | $(2,035) | $(3,549) | | Cash and cash equivalents, beginning of period | $2,873 | $3,565 | | Cash and cash equivalents, end of period | $838 | $16 | Notes to Condensed Consolidated Financial Statements These notes detail business operations, accounting policies, asset acquisitions, equity offerings, related party transactions, and a critical going concern warning Note 1. Organization and Nature of Operations Catheter Precision designs cardiac electrophysiology medical technologies, forming two new subsidiaries for heart failure and mapping advancements - The company's main products are the VIVO System (non-invasive 3D cardiac mapping) and LockeT (suture retention device)2324 - In February 2025, the company formed Cardionomix, Inc. (82% owned) to acquire and develop the Cardiac Pulmonary Nerve Stimulation (CPNS) System for acute heart failure2627 - In June 2025, the company formed KardioNav, Inc. (57% owned) to develop new electrophysiology mapping technologies by integrating VIVO IP with patents from a third party2829 Going Concern Substantial doubt exists about the company's going concern due to recurring losses, negative cash flows, and a $0.8 million cash balance, requiring urgent financing - Management has concluded there is substantial doubt about the Company's ability to continue as a going concern within 12 months from the financial statement issuance date36 Key Financial Indicators (as of June 30, 2025) | Metric | Value (in millions) | | :--- | :--- | | Net Loss (Six Months Ended) | $9.5 | | Cash Used in Operations (Six Months Ended) | $4.6 | | Accumulated Deficit | $301.5 | | Working Capital Deficit | $2.6 | | Cash and Cash Equivalents | $0.8 | - The company plans to raise additional capital through equity or debt financing but acknowledges it may not be able to secure such financing on favorable terms, if at all37 Note 2. Summary of Significant Accounting Policies This note outlines key accounting policies, including consolidation of VIEs, fair value measurements for Level 3 instruments, and revenue recognition - The company consolidates two Variable Interest Entities (VIEs), Cardionomix and KardioNav, as it is the primary beneficiary of both777982 - Royalties payable and trading debt securities are classified as Level 3 financial instruments, valued using unobservable inputs like discounted future cash flows and probability-weighted models575859 - Revenue from the VIVO System and LockeT device is recognized at a point in time when control is transferred to the customer upon delivery9092 Note 7. Notes Payable The company holds $1.3 million in subsidiary notes and $1.5 million in related party notes to the CEO, maturing in January 2026 at 12% interest - In May 2025, subsidiary Cardionomix issued a $1.5 million promissory note (present value $1.3 million) in connection with the CPNS System asset acquisition, maturing in three years116117 - The company has $1.5 million in short-term promissory notes outstanding to CEO David A. Jenkins and his affiliates. These notes were amended to extend the maturity to January 31, 2026, and increase the interest rate to 12% per annum120121123 Note 8. Royalties Payable Significant royalty obligations for LockeT, primarily to the CEO, increased in fair value from $9.2 million to $12.0 million, resulting in a $2.8 million non-cash expense - The company is obligated to pay a royalty of 11.82% of LockeT net sales to former noteholders, who are primarily CEO David A. Jenkins and his affiliates129 - The fair value of the total royalty payable increased from $9.2 million at year-end 2024 to $12.0 million as of June 30, 2025129 - The company recorded a non-cash expense of $2.8 million for the change in fair value of royalties payable for the six months ended June 30, 2025132 Note 11. Equity Offerings In 2025, the company raised $1.5 million cash via PIPE financing and $1.7 million gross proceeds from an ATM offering of 4.2 million shares - On May 12, 2025, the company completed a PIPE financing, selling Series B Convertible Preferred Stock and Series L Warrants. It received $1.5 million in cash and QHSLab Notes valued at $864 thousand, before $0.4 million in fees164 - On May 19, 2025, the company entered into an At Market (ATM) Offering Agreement. As of June 30, 2025, it had sold 4,183,589 shares for gross proceeds of $1.7 million, before $0.2 million in commissions and expenses175177 Note 14. Asset Acquisitions In 2025, the company expensed $119 thousand for a patent and $1.8 million for the CPNS System acquisition as acquired in-process R&D - On January 24, 2025, the company acquired a patent for pericardial access technology, expensing $119 thousand as acquired IPR&D215 - On May 5, 2025, the company's subsidiary acquired the CPNS System, expensing $1.8 million as acquired IPR&D. Consideration included $0.3 million in stock, a $1.3 million note, and $0.3 million in transaction costs217 Note 17. Related Parties Extensive related party transactions exist with CEO David A. Jenkins and affiliates, including significant stock holdings, 12% LockeT royalties, and $1.5 million in loans - CEO David A. Jenkins and his affiliates hold a majority of the Series X Convertible Preferred Stock and have royalty rights equal to approximately 12% of LockeT net sales224226 - The company owes $1.5 million in principal plus accrued interest to Mr. Jenkins and his affiliates under various short-term promissory notes229230 - Mr. Jenkins and his affiliates also hold significant equity stakes in the company's new subsidiaries, Cardionomix (12%) and KardioNav (10%)233234 Note 18. Subsequent Events Stockholders approved a 1-for-19 ratio reverse stock split, effective August 15, 2025, reducing outstanding shares from 18.9 million to 1.0 million - On July 25, 2025, stockholders approved a reverse stock split, which the Board set at a 1-for-19 ratio238 - The reverse stock split will be effective August 15, 2025, and is expected to decrease the number of issued and outstanding shares from approximately 18.9 million to 1.0 million238240 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Management discusses financial performance, liquidity, and capital resources, highlighting revenue growth, widening losses, and substantial doubt about going concern due to insufficient cash Results of Operations Q2 2025 revenues increased by $119 thousand from LockeT sales, but net loss widened due to $1.8 million acquired IPR&D and higher operating expenses - Revenue for Q2 2025 increased by $119 thousand YoY, driven by a $102 thousand increase in LockeT sales285 - SG&A expenses for Q2 2025 rose by $0.2 million YoY, mainly due to increased salaries and benefits from a higher employee headcount (21 vs. 15)287 - Acquired in-process R&D expense was $1.8 million in Q2 2025, related to the Cardionomic asset acquisition, with no comparable expense in Q2 2024289 Liquidity and Capital Resources With $0.8 million cash and a $301.5 million accumulated deficit, the company faces critical liquidity issues, requiring urgent financing and raising substantial doubt about its going concern - As of June 30, 2025, the company had cash and cash equivalents of $0.8 million and an accumulated deficit of $301.5 million294 - Management has concluded there is substantial doubt about the Company's ability to continue as a going concern for one year297 - The company expects the need for additional financing before the end of the current quarter to fund operations and pay debts, as current cash is insufficient to cover costs and repay notes due January 31, 2026296 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK This section is not applicable to the company for the current reporting period - The company states that this item is not applicable316 CONTROLS AND PROCEDURES Disclosure controls and procedures were not effective as of June 30, 2025, due to Material weaknesses including lack of segregation of duties and inadequate review controls - The CEO and CFO concluded that as of June 30, 2025, the company's disclosure controls and procedures were not effective317 - Material weaknesses were identified related to: (1) lack of segregation of duties, (2) lack of designed and operating review controls, and (3) insufficient review of work performed by third-party service providers, particularly for valuations and tax provision calculations317 - A remediation plan is being developed, which includes assessing the need for more accounting staff and establishing new policies for reviewing third-party work and internal calculations. A new CFO was hired in January 2025 to help address these issues318 PART II. OTHER INFORMATION LEGAL PROCEEDINGS The company refers to legal proceedings information disclosed in its Annual Report on Form 10-K for fiscal year 2024 - As of June 30, 2025, the Company had no outstanding litigation223 RISK FACTORS No material changes occurred from risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes from the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024324 EXHIBITS This section lists exhibits filed with Form 10-Q, including agreements, governance documents, and officer certifications
Catheter Precision(VTAK) - 2025 Q2 - Quarterly Report