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 growth execution following the retirement of legacy convertible debt [1][2][5] Financial Developments - 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, thus eliminating potential dilution and reducing annual interest expenses by over $200,000 [2][3] - The recent capital injection and debt retirement have improved the company's liquidity and financial flexibility, allowing it to support working capital needs and pursue growth initiatives [3][5] Growth Strategy - QHSLab plans to execute targeted sales and marketing efforts to expand its medical practice client base, enhance onboarding and implementation capacity, and improve customer support activities [3] - The company aims to increase its physician client base, recurring assessment volume, revenues, and operational efficiencies [3] Investor Insights - The $500,000 placement consisted entirely of newly issued common stock and long-term warrants, aligning investors with management's long-term growth strategy [4] - Management views this financing as a significant turning point, having removed a major source of dilution and interest expense while replacing it with clean equity capital [5] Recent Financial Performance - For the first nine months of 2025, QHSLab reported revenues of $1.99 million, reflecting a 32% year-over-year increase, and a gross profit of $1.32 million, resulting in a 66% gross margin [6]