QHSLab, Inc. (OTCQB:USAQ) Completes $500K Private Placement, Enters 2026 With Clean Capital Structure

Core Viewpoint - QHSLab Inc. has successfully completed a $500,000 private placement, enhancing its balance sheet and shifting focus from debt management to disciplined growth execution [1][4]. Financial Restructuring - The company retired over $1.4 million of legacy convertible notes, which had an 18% default interest rate and conversion rights at $0.20 per share, eliminating potential dilution and over $200,000 in annual interest expenses [2][3]. - The combination of eliminating high-cost convertible debt and securing new equity capital has improved the company's liquidity and financial flexibility [3]. Growth Strategy - QHSLab plans to utilize the new capital for targeted sales and marketing efforts, expanding its medical practice client base, onboarding capacity, and customer support activities [3]. - The company aims to increase its physician client base, recurring assessment volume, revenues, and operational efficiencies [3]. Investor Confidence - The recent capital raise was entirely in common stock and long-term warrants, aligning investors with management's long-term growth strategy [4]. - An investor expressed confidence in QHSLab's trajectory, indicating a positive outlook on the company's future [4]. Management Commentary - The President and CEO emphasized that the financing, while modest, marks a significant turning point for the company, allowing it to focus on scaling its digital medicine programs and driving recurring revenue growth [5]. - The company enters 2026 with a cleaner capital structure, positioning it to prioritize disciplined growth and shareholder value [5]. Recent Financial Highlights - For the first nine months of 2025, QHSLab reported revenues of $1.99 million, a 32% increase year-over-year, and a gross profit of $1.32 million, reflecting a 66% gross margin [6].