Mergers and Acquisitions - Catheter Precision, Inc. merged with Old Catheter on January 9, 2023, becoming a wholly owned subsidiary, focusing on cardiac electrophysiology technologies [287]. - Cardionomix acquired the CPNS System for $1.9 million, which includes $0.3 million in stock and a $1.5 million promissory note [301]. - An acquisition of PeriKard, LLC was completed on January 24, 2025, for 14,473 shares valued at $113 thousand, with potential royalty payments of 10% on net sales for five years [298]. Product Development and Innovation - The VIVO System has been utilized in over 1,000 procedures in the U.S. and EU, with no reported device-related complications, and has received FDA clearance for marketing as a pre-procedure planning tool [291]. - The LockeT device was registered with the FDA in May 2024, and CE Mark approval was obtained in April 2025, allowing marketing in the EU, Switzerland, and Turkey [294]. - The company aims to establish VIVO as a key tool for cardiac electrophysiologists, reducing procedure time and complications while increasing success rates [296]. - KardioNav was formed to develop a system integrating VIVO mapping technology with patents for interfacing with implanted cardiac devices, currently in the planning phase [314]. Financial Performance - The company reported revenues primarily from the VIVO System and LockeT device, with approximately 20% of sales derived from international customers in 2025 [332][334]. - Revenue for the year ended December 31, 2025, increased by approximately $399 thousand to $819 thousand compared to $420 thousand in 2024, driven by a $408 thousand increase in LockeT sales [343]. - Cost of revenues rose by approximately $21 thousand to $63 thousand in 2025, primarily due to increased LockeT sales, offset by higher product margins [344]. - The company recorded a net loss of $17.7 million for the year ended December 31, 2025, contributing to net cash used in operating activities of approximately $8.3 million [363]. - As of December 31, 2025, the company had cash and cash equivalents of approximately $0.1 million and an accumulated deficit of approximately $309.5 million [355]. - The company expects operating losses and negative cash flows to continue unless sales and gross profit increase sufficiently to cover operating expenses [359]. Expenses and Costs - Selling, general and administrative expenses included employee-related costs and professional services, impacting overall financial performance [336]. - Selling, general and administrative expenses increased by approximately $726 thousand to $12,075 thousand in 2025, mainly due to higher salaries and benefits, stock-based compensation, and professional fees [345]. - Research and development expenses were incurred for product development and clinical studies, reflecting the company's commitment to innovation [337]. - Research and development expenses increased by approximately $590 thousand to $862 thousand in 2025, attributed to higher professional fees and salaries related to R&D activities [346]. - Acquired in-process research and development expenses rose by approximately $1,967 thousand in 2025, primarily due to asset acquisitions, including $1.9 million related to Cardionomic's CPNS System [348]. Debt and Financing - The company entered into a Securities Purchase Agreement in May 2025, raising gross proceeds of $1.5 million in cash and $864 thousand in QHSLab Notes [303]. - The Series L Warrants from the May 2025 PIPE Financing are exercisable into common stock at an exercise price of $9.50 per share, expiring on January 25, 2031 [304]. - The company entered into an At Market Offering Agreement allowing the sale of up to $4.3 million of common stock, with 887,852 shares sold for gross proceeds of $4.0 million as of December 31, 2025 [311][313]. - The company is pursuing additional private placements, with gross proceeds of $2.2 million from a February 2026 financing agreement [328]. - The company issued unsecured convertible notes payable totaling $306 thousand, with a maturity date of September 30, 2026 and an interest rate of 10% per annum [316]. - The second amendment of Related Party Notes extended maturity dates to January 31, 2028, and January 31, 2029, with a recognized premium of $0.2 million due to fair value adjustments [319][320]. - A Royalty Right Exchange was executed, exchanging $2.7 million in future royalty rights for Series J Convertible Preferred Stock valued at $5.3 million, resulting in a loss on debt extinguishment [325]. - Loss on debt extinguishment was recognized when the reacquisition price exceeded the net carrying amount of liabilities, impacting financial statements [340]. Accounting and Reporting - The preparation of audited consolidated financial statements involves estimates and assumptions related to assets, liabilities, revenue, and expenses, which may differ from actual results [371]. - Intangible assets from business combinations are amortized on a straight-line basis over their estimated useful lives, with management regularly evaluating their carrying value [373]. - The company recognizes a liability for royalty fees based on actual sales of products, with future estimated royalty payments recorded at fair value [376]. - The fair value measurement of royalties payable includes significant unobservable inputs, with the present value of estimated future royalty payments discounted using an internally developed revenue adjusted discount rate [377]. - Convertible notes payable are measured using the fair value option, with remeasurement at each reporting date based on a probability weighted expected return model [378]. - New accounting pronouncements are described in the audited consolidated financial statements, including expected adoption dates and estimated effects on financial results [379].
Catheter Precision(VTAK) - 2025 Q4 - Annual Report