Cytosorbents Corp 10-Q

Item 1. Financial Statements. CYTOSORBENTS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ ​ 2026 ​ 2025 ​ ​ ​ ​ (unaudited) ​ ​ ​ ​ ASSETS ​ ​ ​ ​ ​ Current Assets: ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 4,813 ​ $ 6,249 Accounts receivable, net of allowances of $ 164 as of March 31, 2026 and December 31, 2025 ​ 7,152 ​ 7,550 Inventories - net ​ 4,481 ​ 5,281 Prepaid expenses and other current assets ​ 1,311 ​ 1,554 Total current assets ​ 17,757 ​ 20,634 ​ ​ ​ ​ ​ Property and equipment - net ​ 7,510 ​ 7,823 Restricted cash ​ ​ 1,522 ​ ​ 1,522 Right-of-use asset ​ ​ 10,769 ​ ​ 10,924 Patents - net ​ ​ 2,952 ​ ​ 3,226 Other assets ​ 52 ​ 53 Total assets ​ $ 40,562 ​ $ 44,182 ​ ​ ​ ​ ​ LIABILITIES AND STOCKHOLDERS’ EQUITY ​ ​ ​ ​ Current Liabilities: ​ ​ ​ ​ Accounts payable ​ $ 3,132 ​ $ 2,869 Accrued expenses and other current liabilities ​ ​ 5,960 ​ ​ 6,299 Lease liability – current portion ​ ​ 565 ​ ​ 541 Current maturities of long-term debt, net of debt discount ​ 6,646 ​ — Total current liabilities ​ 16,303 ​ 9,709 Lease liability, net of current portion ​ ​ 11,752 ​ ​ 11,903 Long-term debt, net of current portion and debt discount ​ ​ 10,313 ​ ​ 16,667 Total liabilities ​ 38,368 ​ 38,279 ​ ​ ​ ​ ​ Commitments and Contingencies ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stockholders’ equity ​ ​ ​ ​ Preferred Stock, par value $ 0.001 , 5,000,000 shares authorized; no shares issued and outstanding as of March 31, 2026 and December 31, 2025 ​ ​ — ​ ​ — Common Stock, par value $ 0.001 , 100,000,000 shares authorized as of March 31, 2026 and December 31, 2025; 62,733,305 and 62,804,305 shares issued and outstanding as of March 31, 2026 and December 31, 2025 respectively ​ 63 ​ 63 Additional paid-in capital ​ 321,568 ​ 321,024 Accumulated other comprehensive loss ​ ( 2,101 ) ​ ( 2,977 ) Accumulated deficit ​ ( 317,336 ) ​ ( 312,207 ) Total stockholders’ equity ​ 2,194 ​ 5,903 Total liabilities and stockholders’ equity ​ $ 40,562 ​ $ 44,182 ​ See accompanying notes to condensed consolidated financial statements ​ 3 Table of Contents CYTOSORBENTS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) (in thousands, except share and per share data) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Revenue, net $ 8,864 $ 8,727 Cost of goods sold ​ 2,734 ​ ​ 2,520 Gross profit ​ 6,130 ​ ​ 6,207 ​ ​ ​ ​ ​ ​ ​ Operating expenses ​ ​ ​ ​ Research and development, net of grant income ​ 1,025 ​ 1,663 Selling, general and administrative ​ 8,149 ​ 8,432 Total operating expenses ​ 9,174 ​ 10,095 Loss from operations ​ ( 3,044 ) ​ ( 3,888 ) ​ ​ ​ ​ ​ ​ ​ Other income (expense) ​ ​ ​ ​ Interest expense, net ​ ( 857 ) ​ ( 605 ) Gain (loss) on foreign currency transactions ​ ​ ( 1,228 ) ​ ​ 3,014 Total other income (expense), net ​ ( 2,085 ) ​ 2,409 ​ ​ ​ ​ ​ Net loss ​ $ ( 5,129 ) ​ $ ( 1,479 ) ​ ​ ​ ​ ​ ​ Basic and diluted net loss per common share ​ $ ( 0.08 ) ​ $ ( 0.02 ) ​ ​ ​ ​ ​ ​ ​ Weighted Average Shares of Common Stock Outstanding ​ ​ ​ ​ ​ ​ Basic and diluted ​ 62,738,827 ​ ​ 60,731,929 ​ ​ ​ ​ ​ ​ ​ Other comprehensive income (loss): ​ ​ ​ ​ ​ Foreign currency translation adjustment, net of tax ​ 876 ​ ​ ( 2,736 ) Comprehensive loss ​ $ ( 4,253 ) ​ $ ( 4,215 ) ​ See accompanying notes to condensed consolidated financial statements. ​ 4 Table of Contents CYTOSORBENTS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) (in thousands, except share data) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ Other ​ ​ ​ ​ ​ ​ ​ ​ Common Stock ​ Paid-In ​ Comprehensive ​ Accumulated ​ Stockholders’ ​ ​ ​ ​ Shares ​ ​ ​ Par Value ​ ​ ​ Capital ​ ​ ​ Income (Loss) ​ ​ ​ Deficit ​ ​ ​ Equity Balance at December 31, 2025 ​ 62,804,305 ​ $ 63 ​ $ 321,024 ​ $ ( 2,977 ) ​ $ ( 312,207 ) ​ $ 5,903 Stock-based compensation ​ — ​ ​ — ​ ​ 544 ​ ​ — ​ ​ — ​ ​ 544 Reversal of excess RSU shares issued ​ ( 71,000 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Foreign currency translation adjustment, net of tax ​ — ​ ​ — ​ ​ — ​ ​ 876 ​ ​ — ​ ​ 876 Net loss ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 5,129 ) ​ ​ ( 5,129 ) Balance at March 31, 2026 ​ 62,733,305 ​ $ 63 ​ $ 321,568 ​ $ ( 2,101 ) ​ $ ( 317,336 ) ​ $ 2,194 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ Other ​ ​ ​ ​ ​ ​ ​ ​ Common Stock ​ Paid-In ​ Comprehensive ​ Accumulated ​ Stockholders’ ​ ​ ​ ​ Shares ​ ​ ​ Par Value ​ ​ ​ Capital ​ ​ ​ Income ​ ​ ​ Deficit ​ ​ ​ Equity Balance at December 31, 2024 ​ 54,830,146 ​ $ 55 ​ $ 310,809 ​ $ 4,252 ​ $ ( 304,009 ) ​ $ 11,107 Stock-based compensation ​ 32,321 ​ ​ — ​ ​ 818 ​ ​ — ​ ​ — ​ ​ 818 Issuance of common stock from exercise of warrants ​ 1,417,208 ​ ​ 2 ​ ​ 1,437 ​ ​ — ​ ​ — ​ ​ 1,439 Issuance of common stock and warrants from rights offerings, net of fees incurred ​ 6,249,791 ​ ​ 6 ​ ​ 5,386 ​ ​ — ​ ​ — ​ ​ 5,392 Foreign currency translation adjustment, net of tax ​ — ​ ​ — ​ ​ — ​ ​ ( 2,736 ) ​ ​ — ​ ​ ( 2,736 ) Net loss ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 1,479 ) ​ ​ ( 1,479 ) Balance at March 31, 2025 ​ 62,529,466 ​ $ 63 ​ $ 318,450 ​ $ 1,516 ​ $ ( 305,488 ) ​ $ 14,541 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ See accompanying notes to condensed consolidated financial statements. ​ 5 Table of Contents CYTOSORBENTS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three ​ Three ​ ​ Months Ended ​ Months Ended ​ ​ March 31, ​ March 31, ​ ​ 2026 ​ 2025 Cash flows from operating activities ​ ​ ​ ​ ​ Net loss ​ $ ( 5,129 ) ​ $ ( 1,479 ) Adjustments to reconcile net loss to net cash used in operating activities: ​ ​ ​ ​ ​ Amortization of debt discount ​ ​ 291 ​ ​ 190 Amortization of patents ​ ​ 61 ​ 63 Depreciation ​ ​ 289 ​ 306 Amortization of right-of-use asset ​ ​ 26 ​ ​ 36 Loss on abandoned patents ​ ​ 274 ​ 8 Bad debt expense (recovery) ​ ​ ( 1 ) ​ ​ 2 Stock-based compensation ​ ​ 544 ​ ​ 818 Foreign currency transaction (gains) losses ​ ​ 1,228 ​ ( 3,014 ) Changes in operating assets and liabilities ​ ​ ​ ​ ​ Accounts receivable ​ ​ 310 ​ ​ ( 80 ) Inventories ​ ​ 723 ​ ( 199 ) Prepaid expenses and other current assets ​ ​ 129 ​ 250 Other assets ​ ​ 1 ​ — Accounts payable and accrued expenses ​ ​ 92 ​ ( 367 ) Net cash used in operating activities ​ ​ ( 1,162 ) ​ ( 3,466 ) ​ ​ ​ ​ ​ ​ ​ Cash flows from investing activities ​ ​ ​ ​ ​ Purchases of property and equipment ​ ​ ( 11 ) ​ ( 2 ) Disposals of property and equipment ​ ​ 26 ​ — Payments for patent costs ​ ​ ( 61 ) ​ ( 45 ) Net cash used in investing activities ​ ​ ( 46 ) ​ ( 47 ) Cash flows from financing activities ​ ​ ​ ​ ​ Cash for exercise of warrants, net ​ ​ — ​ ​ 1,439 Proceeds from rights offering, net ​ ​ — ​ ​ 5,392 Net cash provided by financing activities ​ ​ — ​ ​ 6,831 Effect of exchange rates on cash ​ ​ ( 228 ) ​ 28 Net change in cash, cash equivalents, and restricted cash ​ ​ ( 1,436 ) ​ 3,346 ​ ​ ​ ​ ​ ​ ​ Cash, cash equivalents, and restricted cash at beginning of year ​ ​ 7,771 ​ 9,764 Cash, cash equivalents, and restricted cash – end of period ​ $ 6,335 ​ $ 13,110 ​ ​ ​ ​ ​ ​ ​ Supplemental disclosure of cash flow information ​ ​ ​ ​ ​ Cash paid for interest ​ $ 591 ​ $ 506 ​ ​ ​ ​ ​ ​ ​ Supplemental disclosure of non-cash financing activities ​ ​ ​ ​ ​ Fair value of common stock warrants issued in connection with the rights offering ​ ​ — ​ ​ 556 Offering fees included in accounts payable ​ $ — ​ $ 253 ​ See accompanying notes to condensed consolidated financial statements. ​ 6 Table of Contents CYTOSORBENTS CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2026 (Unaudited) 1. NATURE OF BUSINESS AND BASIS OF PRESENTATION CytoSorbents Corporation (the “Company”) is a leader in the treatment of life-threatening conditions in intensive care and cardiac surgery using blood purification. The Company, through its subsidiary CytoSorbents Medical, Inc. based in New Jersey, is engaged in the research, development and commercialization of medical devices with its blood purification technology platform which incorporates a proprietary adsorbent, porous polymer technology. The Company, through its wholly owned European subsidiary, CytoSorbents Europe GmbH, based in Berlin, Germany, its wholly-owned Indian subsidiary, CytoSorbents India Private Limited, based in Kasavanahalli, India, and its wholly-owned Dubai entity, CytoSorbents MEA FZCO, based in CommerCity, Dubai, conducts sales and marketing related operations for the CytoSorb device outside of the United States. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company as of March 31, 2026 and December 31, 2025, and for the three months ended March 31, 2026 and 2025. The Company’s condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X and therefore, do not include all information and footnotes necessary for a fair presentation of consolidated financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and should be read in conjunction with the audited consolidated financial statements of the Company for the year ended December 31, 2025, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. In the opinion of management, the Company has made all necessary adjustments, which include normal recurring adjustments, for a fair presentation of the Company’s consolidated financial position and results of operations for the interim periods presented. Certain information and disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The results for the three months ended March 2026 and 2025, are not necessarily indicative of the results to be expected for a full year, any other interim periods or any future year or period. The Company presents amounts in thousands unless otherwise stated. Prior periods have been adjusted accordingly for consistent presentation. Certain prior year amounts in the footnotes have been reclassified to conform to the current year presentation. Going Concern As of March 31, 2026, the Company’s total cash and cash equivalents and restricted cash was approximately $ 6.3 million, with $ 1.5 million classified as restricted, and $ 4.8 million as unrestricted and available to fund operations. These cash and restricted cash balances considered with the Company’s historical and expected future cash used in operations, notwithstanding the Company’s Strategic Workforce and Cost Reduction Plan (see Note 11, “Restructuring”) and the impact of the Amended Loan and Security Agreement (see Note 6, “Long - Term Debt”) raises substantial doubt about the Company’s ability to continue as a going concern within twelve months after the date that the accompanying condensed consolidated financial statements are issued. The Company’s expected future capital requirements may depend on many factors, including expanding the Company’s customer base and sales force, the timing and extent of spending in obtaining regulatory approval and introduction of new products, including the potential regulatory approval and introduction of DrugSorb™-ATR, in the United States which would allow for the opportunity to receive Tranche 2 (b) of the Amended Avenue Capital Commitment by December 31, 2026 and receive an additional 6-month extension of the interest-only period on the credit facility. Additional sources of liquidity available to the Company include the 2024 Shelf, other public or private equity offerings, debt financing or from other sources. The sale of additional equity may result in dilution to shareholders. There is no assurance that the Company will be able to secure funding on terms acceptable, or at all. Although the Company has taken actions to achieve cash flow breakeven, if it does not achieve this goal, the potential need for capital could also make it more difficult to obtain funding through either equity or debt. Should additional capital not become available as needed, the Company may be required to take certain actions, such as slowing sales and marketing expansion, delaying further regulatory approvals, or further reducing headcount. The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company routinely evaluates other financing sources, including less or non-dilutive debt financing, additional grant funding, royalty financing, strategic or direct investments, equity financing, and/or combinations thereof. There can be no assurance that management will be successful in these endeavors. ​ 7 Table of Contents 2. SIGNIFICANT ACCOUNTING POLICIES There have been no material changes to significant accounting policies disclosed in the Company’s consolidated financial statements from the Annual Report on Form 10-K for the year ended December 31, 2025. Basis of Consolidation and Foreign Currency Translation The condensed consolidated financial statements include the accounts of CytoSorbents Corporation and its wholly owned subsidiaries, CytoSorbents Medical, Inc. and CytoSorbents Europe GmbH. In addition, the condensed consolidated financial statements include CytoSorbents Switzerland GmbH, CytoSorbents Poland Sp. z.o.o., CytoSorbents Medical UK Limited and CytoSorbents France SAS, wholly owned subsidiaries of CytoSorbents Europe GmbH, and CytoSorbents UK Limited, CytoSorbents India Private Limited, CytoSorbents Medical Canada, Inc., and CytoSorbents MEA FZCO, wholly owned subsidiaries of CytoSorbents Medical, Inc. All significant intercompany transactions and balances have been eliminated in consolidation. Sales and expenses denominated in foreign currencies are translated at average exchange rates in effect throughout the year. Assets and liabilities of foreign operations are translated at period-end exchange rates with the impacts of foreign currency translation recorded in cumulative translation adjustment, a component of accumulated other comprehensive income (loss). Foreign currency transactions gains and losses are included in other income (expense), net in the condensed consolidated statements of operations and comprehensive loss. Loss on Abandoned Patents During the three months ended March 31, 2026 and 2025, the Company recorded non-cash charges of approximately $ 0.3 million and $ 0.0 million respectively, related to the loss on abandonment of certain pending patent applications in certain specific jurisdictions and the abandonment of certain pending patent application costs in the ordinary course of business. This charge is included in selling, general and administrative expenses in the condensed consolidated statements of operations and comprehensive loss. Income Taxes The Company has no t recorded income tax expense or income tax benefit for the three months ended March 31, 2026 and 2025 due to the generation of net operating losses, the benefits of which have been fully reserved. Deferred income taxes are accounted for using the balance sheet approach, which requires recognition of deferred tax assets and liabilities for the expected future consequences of temporary differences between the financial reporting basis and the tax basis of assets and liabilities. A valuation allowance is provided when it is more likely than not that a deferred tax asset will not be realized. A full valuation allowance has been established on the deferred tax asset as it is more likely than not that a future tax benefit will not be realized. In addition, future utilization of the available net operating loss carryforward may be limited under Internal Revenue Code Section 382 as a result of changes in ownership. The Company follows accounting standards associated with uncertain tax positions. The Company files tax returns in the United States federal and state, and international jurisdictions. The Company utilizes the New Jersey Technology Business Tax Certificate Program (the “Program”) whereby the State of New Jersey allows the Company to sell a portion of its state net operating losses and research and development (“R&D”) credits to a third party. The Company received $ 0.4 million from the Program in March of 2026 resulting from the sale of 2024 net operating losses and R&D credits. The Company received $ 1.7 million from the Program in April of 2025 resulting from the sale of 2023 and amended 2022 net operating losses and R&D credits. 8 Table of Contents Concentration of Credit Risk The Company maintains cash balances with financial institutions, at times, in excess of amounts insured by the Federal Deposit Insurance Corporation (“FDIC”) up to a $250,000 limit. Through the IntraFi Network, the Company maintains an Insured Cash Sweep account whereby all cash held in the Company’s money market accounts is swept daily in increments of less than the FDIC insurance limit and deposited in a number of IntraFi’s network of 3,000 financial institutions. This arrangement provides FDIC insurance coverage for all of the cash balances held in the money market accounts. This arrangement excludes the restricted cash balances. Management monitors the soundness of these institutions in an effort to minimize its collection risk of these balances. A significant portion of the Company’s revenues is from product sales in Germany. See Note 5, Revenue, for additional information relating to the Company’s revenue. The Company does not have any significant concentration of risk with respect to any one particular supplier. As of March 31, 2026, distributor A and distributor B accounted for approximately 17 % and 11 %, respectively, of the Company’s outstanding accounts receivable. As of December 31, 2025, distributor A accounted for approximately 17 % of outstanding accounts receivable. For the three months ended March 31, 2026, distributor A accounted for approximately 14 % of the Company’s revenue. For the three months ended March 31, 2025, no distributor or direct customers accounted for more than 10% of the Company’s revenue. Shipping and Handling Costs Total freight costs amounted to approximately $ 0.1 million for each of the three months ended March 31, 2026 and 2025. ​ 3. BALANCE SHEET COMPONENTS Cash, cash equivalents, and restricted cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash shown in the condensed consolidated balance sheets and the condensed consolidated statements of cash flows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ ​ ​ December 31, 2025 ​ ​ (amounts, in thousands) Cash and cash equivalents ​ $ 4,813 ​ $ 6,249 Restricted cash ​ 1,522 ​ 1,522 Total cash, cash equivalents, and restricted cash ​ $ 6,335 ​ $ 7,771 ​ Inventories - net The Company had the following major classes of inventories: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ ​ ​ December 31, 2025 ​ ​ (amounts, in thousands) Raw materials ​ $ 552 ​ $ 751 Work in process ​ 1,241 ​ 1,014 Finished goods ​ ​ 2,696 ​ ​ 3,528 Inventories ​ ​ 4,489 ​ ​ 5,293 Less reserve ​ ( 8 ) ​ ( 12 ) Inventories - Net ​ $ 4,481 ​ $ 5,281 ​ 9 Table of Contents Property and equipment - net The Company’s property and equipment consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation/ ​ ​ ​ ​ ​ ​ ​ ​ Amortization ​ ​ ​ ​ March 31, 2026 ​ ​ ​ December 31, 2025 ​ ​ ​ Period ​ ​ (amounts, in thousands) ​ ​ Furniture and fixtures ​ $ 1,539 ​ $ 1,532 7 years Equipment and computers ​ 5,138 ​ 5,129 3 to 7 years Leasehold improvements ​ 6,304 ​ 6,308 Lesser of term of lease or estimated useful life ​ ​ 12,981 ​ 12,969 ​ ​ Less accumulated depreciation and amortization ​ ( 5,471 ) ​ ( 5,146 ) ​ Property and equipment, net ​ $ 7,510 ​ $ 7,823 ​ ​ Depreciation expense for each of the three months ended March 31, 2026 and 2025 amounted to approximately $ 0.3 million. Patents - net Patents consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ ​ ​ December 31, 2025 ​ ​ (amounts, in thousands) Patent applications pending ​ $ 1,143 ​ $ 1,356 Patents issued ​ 3,298 ​ 3,298 Less accumulated amortization of patents issued ​ ( 1,489 ) ​ ( 1,428 ) Patents, net ​ $ 2,952 ​ $ 3,226 ​ Patent amortization expenses amounted to $ 0.1 million for each of the three months ended March 31, 2026 and 2025. Patent amortization expense for the next five years and thereafter is scheduled as follows: ​ ​ ​ ​ ​ ​ ​ (amounts, in thousands) Remainder of 2026 ​ ​ ​ $ 184 2027 ​ 240 2028 ​ 227 2029 ​ 227 2030 ​ 227 Thereafter ​ 704 Scheduled amortization of patents issued ​ $ 1,809 ​ Accrued expenses and other current liabilities Accrued expenses and other current liabilities consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ ​ ​ December 31, 2025 ​ ​ (amounts, in thousands) Accrued salaries and commissions ​ $ 3,339 ​ $ 3,413 Clinical studies ​ 433 ​ 522 Deferred revenue and contract liabilities ​ 34 ​ 182 Professional fees ​ ​ 680 ​ ​ 856 Royalties ​ ​ 268 ​ ​ 271 Goods received not invoiced ​ ​ 108 ​ ​ 150 Other ​ 1,098 ​ 905 Accrued expenses and other current liabilities ​ $ 5,960 ​ $ 6,299 ​ ​ 10 Table of Contents 4. COMMON STOCK, STOCK-BASED COMPENSATION AND WARRANTS Common Stock January 10, 2025 Rights Offering On January 10, 2025, the Company closed the subscription period of its previously announced rights offering (the “Rights Offering”), raising aggregate gross proceeds of $ 6.25 million ($ 5.4 million net of fees) from the sale of all 6.25 million Units reserved for the Rights Offering. Participants in the Rights Offering received Units, each Unit comprising of one share of common stock of the Company, one Series A Right Warrant to purchase one share of common stock, and one Series B Right Warrant to purchase one share of common stock (collectively, the “Rights Warrants”). Up to an additional 6.25 million shares of common stock were available for issuance upon exercise of the Right Warrants. Once the 6.25 million shares of common stock reserved for the Right Warrants were issued, the remaining outstanding and unexercised Right Warrants would have expired worthless. Management and the Board of Directors of the Company subscribed for approximately 450,000 of the total Units prior to any pro rata adjustment. Subscribers of basic subscription rights in the Rights Offering were allocated Units based upon their pro-rata share of 6.25 million Units. The Series A Right Warrants and the Series B Right Warrants expired on February 24, 2025 and June 10, 2025, respectively. The warrants do not have a redemption feature and are classified as equity instruments. A fair value of approximately $ 0.3 million and approximately $ 0.1 million has been allocated to the Series A Right Warrant and the Series B Right Warrant, respectively, and recorded within additional paid-in capital. The warrants were valued on the date of issuance using the Monte Carlo pricing model with the following assumptions: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Series A Right Warrant ​ ​ ​ Series B Right Warrant ​ Common Stock Price as of Issuance Date ​ $ 0.94 ​ $ 0.94 ​ Risk-Free Rate ​ ​ 4.31 % 4.27 % Dividend Rate ​ ​ 0.00 % 0.00 % Volatility ​ ​ 88.90 % 97.19 % Minimum Exercise Price ​ $ 1.00 ​ $ 2.00 ​ Maximum Exercise Price ​ $ 2.00 ​ $ 4.00 ​ Formula for Exercise Price ​ ​ 90 % of the 5-day volume weighted average stock price as of the exercise date rounded down to the nearest cent, not to fall outside the range of the maximum and minimum exercise prices. ​ ​ Proceeds from the closing of the subscription period satisfied a debt covenant which allowed for $ 5.0 million of restricted cash on the Company’s condensed consolidated balance sheets to become unrestricted, and available for use. The Right Warrants were exercisable commencing on their date of issuance and the exercise price is equal to (i) in the case of the Series A Right Warrants, 90 % of the five -day volume weighted average price of Common Stock over the last five trading days prior to the expiration date of the Series A Right Warrants on February 24, 2025, rounded down to the nearest whole cent but (x) not lower than $ 1.00 and (y) not higher than $ 2.00 , and (ii) in the case of the Series B Right Warrants, 90 % of the five -day volume weighted average price of Common Stock over the last five trading days prior to the extended expiration date of the Series B Right Warrants on June 10, 2025, rounded down to the nearest whole cent but (x) not lower than $ 2.00 and (y) not higher than $ 4.00 . Exercise of the Right Warrants required additional investment separate from the purchase of the Units. 6.25 million shares of common stock were reserved for exercise of the Right Warrants. The Right Warrants were transferable until expiration. On February 24, 2025, approximately 1.4 million Series A Right Warrants were exercised by holders, including members of management and the Board of Directors, at an exercise price of $ 1.13 per warrant, providing an additional $ 1.6 million in aggregate gross proceeds ($ 1.4 million net of fees). All of the remaining 4.85 million Series A Right Warrants expired on February 24, 2025. On April 4, 2025, the Board of Directors extended the expiration date of the Series B Right Warrants from April 10, 2025 to June 10, 2025. On June 11, 2025, the five -day volume weighted average price of Common Stock over the last five - trading days prior to June 10, 2025 was lower than the minimum required price of $ 2.00 and, as a result, the Series B Right Warrants issued in connection with the previously announced Rights Offering expired worthless pursuant to their terms. 11 Table of Contents Stock-Based Compensation The following non-cash stock-based compensation expense, which relates to stock options and restricted stock units (“RSUs”), is included in each of the respective line items in the Company’s condensed consolidated statements of operations and comprehensive loss: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, Stock-based compensation expense by category ​ 2026 ​ ​ ​ 2025 ​ ​ (amounts, in thousands) Cost of goods sold ​ $ 32 ​ $ 59 Research and development, net of grant income ​ ​ 94 ​ ​ 132 Selling, general and administrative ​ 418 ​ 627 Total stock-based compensation expense ​ $ 544 ​ $ 818 ​ For the three months ended March 31, 2026 and 2025, approximately $ 0.4 million and $ 0.7 million of stock-based compensation expense relates to stock options, respectively. For each of the three months ended March 31, 2026 and 2025, approximately $ 0.1 million relates to RSUs. ​ Stock-options The summary of the stock option activity for the three months ended March 31, 2026, is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ Weighted ​ Average ​ ​ ​ ​ Average ​ Remaining ​ ​ ​ ​ Exercise Price ​ Contractual ​ ​ ​ ​ Shares ​ ​ ​ per Share ​ ​ ​ Life (Years) Outstanding, December 31, 2025 10,988,604 ​ $ 3.58 ​ 5.98 Granted 797,847 ​ ​ 0.65 — Exercised ​ — ​ ​ — ​ — Forfeited ( 50,707 ) ​ ​ 1.81 — Expired ( 275,148 ) ​ ​ 3.49 — Outstanding, March 31, 2026 11,460,596 ​ $ 3.38 ​ 6.03 ​ The Company estimated the fair value of stock options granted during the three months ended March 31, 2026 using a Black-Scholes pricing model, which used the following inputs: ​ ​ ​ ​ ​ ​ Exercise price (per share) ​ $ 0.65 - $ 0.67 ​ Expected volatility ​ 80.9 % Expected term* ​ 6.5 years ​ Risk-free rate ​ 3.74 % - 3.80 % Dividends ​ 0 % *The expected term of the options granted is derived using the “simplified method” which computes expected term as the average of the sum of the vesting term plus the contract term. The simplified method is used as the Company’s employee exercise history may not be indicative for estimating future exercises. In addition, the Company recognizes forfeitures as they occur. ​ The intrinsic value is calculated as the difference between the market value of the shares as of March 31, 2026 of $ 0.57 and the exercise price of the shares. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Options Outstanding ​ ​ Number ​ Weighted ​ Weighted ​ Aggregate Range of ​ Outstanding at ​ Average ​ Average ​ Intrinsic Exercise ​ March 31, ​ Exercise ​ Remaining ​ Value Price ​ ​ ​ 2026 ​ ​ ​ Price ​ ​ ​ Life (Years) ​ ​ ​ (in thousands) $ 0.65 - $ 12.25 ​ 11,460,596 ​ $ 3.38 ​ 6.03 ​ $ — 12 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ Options Exercisable Number ​ Weighted ​ Aggregate Exercisable at ​ Average ​ Intrinsic March 31, ​ Exercise ​ Value 2026 ​ ​ ​ Price ​ ​ ​ (in thousands) 8,760,016 ​ $ 4.03 ​ $ — ​ The summary of the status of the Company’s non-vested options for the three months ended March 31, 2026, is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ Average ​ ​ ​ ​ Exercise ​ ​ ​ ​ Shares ​ ​ ​ Price Non-vested, December 31, 2025 2,319,974 ​ $ 1.03 Granted 797,847 ​ $ 0.65 Forfeited ( 50,707 ) ​ $ 1.81 Vested ( 367,032 ) ​ $ 0.75 Non-vested, March 31, 2026 2,700,082 ​ $ 0.90 ​ As of March 31, 2026, the Company had approximately $ 1.4 million of total unrecognized compensation cost related to stock options which will, on average, be amortized over approximately 19 months . Change in Control-Based RSUs The Board of Directors has granted RSUs to members of the Board of Directors, to the Company’s executive officers, and to employees of the Company. These RSUs will vest upon a Change in Control of the Company, as defined in the Amended and Restated CytoSorbents Corporation 2014 Long-Term Incentive Plan, or upon certain life events. The following table is a summary of these restricted stock units: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ Weighted Average Grant Date Fair Value ​ ​ (amounts in thousands, except share data) Outstanding, December 31, 2025 2,754,000 5.60 Granted — — Vested ​ — ​ — Forfeited ( 118,500 ) 4.30 Outstanding, March 31, 2026 2,635,500 ​ 5.66 ​ Due to the uncertainty over whether these restricted stock units will vest, which will only happen upon a Change in Control, or upon certain life events, the Company will only record expense upon an actual vesting event. For the three months ended March 31, 2026, the Company did not record any charges for these restricted stock units. Other RSU Awards The Board of Directors has granted RSUs to members of the Board of Directors, to the Company’s executive officers, and to employees of the Company. These RSUs will vest over specified service periods and are settled in shares of common stock upon vesting. The grant-date fair value of RSUs is recognized as stock-based compensation expense over the requisite service period. 13 Table of Contents The following table outlines the restricted stock unit activity for the three months ended March 31, 2026: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ Average ​ ​ ​ ​ Grant Date ​ ​ ​ ​ Shares ​ ​ ​ Fair Value Non-vested, January 1, 2025 775,301 ​ $ 0.99 Granted ​ 25,000 ​ ​ 0.65 Vested ( 12,500 ) ​ ​ 0.65 Unvested shares forfeited ​ — ​ ​ — Non-vested, March 31, 2026 787,801 ​ $ 0.98 ​ Although the RSUs vested during the three months ended March 31, 2026, the related shares will not be issued until a later date. The issuance of shares is expected to occur in the three months ended June 30, 2026. As of March 31, 2026, the remaining weighted average vesting period for restricted stock awards subject to vesting was 22 months and the remaining unrecognized restricted stock unit compensation expense was $ 0.4 million. ​ Warrants related to the December 2023 equity offering and June 2024 Loan and Security Agreement As of March 31, 2026, the Company had 5,780,701 warrants outstanding. Of this amount, 2,706,561 warrants outstanding are related to the Company’s December 13, 2023 offering. These warrants are immediately cash exercisable at an exercise price of $ 2.00 per share and expire on December 13, 2028. Another 1,645,569 warrants were issued on June 28, 2024 in connection with the closing of the Company’s Loan and Security Agreement with Avenue Capital Group (see Note 6. Long-Term Debt) and these warrants have an exercise price of $ 0.79 and expire on June 30, 2029. The number of warrants is fixed; however, the exercise price may be adjusted down if the Company raises equity (excluding sales of equity utilizing the Company’s at-the-market equity facility) at a share price that is lower than $ 0.79 . These warrants are exercisable into the Company’s common stock. In connection with the Amended Loan and Security Agreement, the Company issued additional warrants to Avenue Capital Group to purchase 1,428,571 shares of the Company’s common stock for cash at the exercise price of $ 0.70 , which expire on November 13, 2030. The number of warrants and exercise price are fixed. 5. REVENUE The following table disaggregates the Company’s revenue by customer type and geographic area for the three months ended March 31, 2026: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Distributors/ ​ ​ ​ ​ ​ ​ ​ Direct ​ ​ ​ Strategic Partners ​ ​ ​ Total ​ ​ (amounts, in thousands) Revenue: ​ ​ ​ ​ ​ ​ United States ​ $ 118 ​ $ — ​ $ 118 Germany ​ 2,613 ​ — ​ 2,613 All other countries ​ 2,125 ​ 4,008 ​ 6,133 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue ​ $ 4,856 ​ $ 4,008 ​ $ 8,864 ​ The following table disaggregates the Company’s revenue by customer type and geographic area for the three months ended March 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Distributors/ ​ ​ ​ ​ ​ ​ ​ Direct ​ ​ ​ Strategic Partners ​ ​ ​ Total ​ ​ (amounts, in thousands) Revenue: ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ 63 ​ $ — ​ $ 63 Germany ​ 2,796 ​ — ​ 2,796 All other countries ​ 1,889 ​ 3,979 ​ 5,868 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue ​ $ 4,748 ​ $ 3,979 ​ $ 8,727 ​ 14 Table of Contents CytoSorb Sales The Company sells its CytoSorb device using both its own sales force (direct sales) and through the use of distributors and/or strategic partners. CytoSorb is not yet approved for commercial sale in the United States. The Company’s United States sales relate to its VetResQ related products for emergency and critical care in animals. Direct sales outside the United States include sales to hospitals located primarily in Germany, Austria, Poland, Switzerland, the Netherlands, and the United Kingdom. Direct sales are fulfilled from the Company’s warehouse facility in Berlin, Germany. There are no formal sales contracts with any direct customers relating to product price or minimum purchase requirements. However, there are agreements in place with certain direct customers that provide for either free of charge product or rebate credits based upon achieving minimum purchase levels. The Company records the value of these items earned as a reduction of revenue, estimated at the time of sale. These customers submit purchase orders and the order is fulfilled and shipped directly to the customer. Prices to all direct customers are based on a standard price list based on the packaged quantity. Distributor and strategic partner sales make up the remaining product sales. These distributors are located in various countries throughout the world , including Italy, India, and other countries across Europe, Central and South America, the Middle East, and South East Asia. The Company has a formal written contract with each of its distributor/strategic partner. These contracts have terms ranging from 1 - 5 years in length, with three years being the typical term. In addition, certain distributors are eligible for volume discount pricing if their unit sales are in excess of the base amount in the contract. Most distributor’s/strategic partner’s contracts have minimum annual purchase requirements in order to maintain exclusivity in their respective territories. There is no additional consideration or monetary penalty that would be required to be paid to CytoSorbents if a distributor does not meet the minimum purchase commitments included in the contract; however, at the discretion of the Company, the distributor may lose its exclusive rights in the territory if such commitments are not met. In summary, the contracts the Company has with customers are the distributor/strategic partner contracts related to CytoSorb product sales, agreements with direct customers related to free-of-charge product and credit rebates based upon achieving minimum purchase levels. The Company does not currently incur any outside third-party incremental costs to obtain any of these contracts. The following table provides information about receivables and contract liabilities from contracts with customers: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ ​ ​ December 31, 2025 ​ ​ ​ ​ ​ ​ ​(amounts in thousands) Contract receivables ​ $ 6,883 ​ $ 7,125 Contract liabilities ​ $ 34 ​ $ 182 ​ Contract receivables represent unconditional rights to consideration for goods delivered or services performed under contracts with customers, including purchase orders. These amounts, which are included in accounts receivable on the condensed consolidated balance sheets, were approximately $ 6.9 million, $ 7.1 million at March 31, 2026, and December 31, 2025, respectively. Contract liabilities, which are included in accrued expenses and other current liabilities on the condensed consolidated balance sheets, represent the value of free of charge goods and credit rebates earned in accordance with the terms of certain direct customer agreements, which amounted to approximately $ 0.1 million and $ 0.2 million as of March 31, 2026 and December 31, 2025, respectively. ​ 6. LONG-TERM DEBT Loan and Security Agreement June 28, 2024 Loan On June 28, 2024 (the “Closing Date”), the Company entered into a Loan and Security Agreement with the Avenue Capital Group (“Loan”). Avenue Capital Group agreed to loan the Company up to an aggregate of $ 20 million (the “Avenue Capital Commitment”), to be disbursed in two tranches. The first tranche of $ 15 million (“Tranche 1”), consisted of $ 10 million which was available to the Company on the Closing Date and $ 5 million constituted restricted cash, which was released from its restriction on January 10, 2025, as the following conditions were achieved: (i) the United States Food and Drug Administration (the “FDA”) has accepted the Company’s application for review with respect to DrugSorb-ATR De Novo 510(k) and (ii) the Company received a minimum of $ 3 million in net 15 Table of Contents proceeds from the sale of its equity securities after the Closing Date. The restriction was released on a dollar-for-dollar basis for equity raised between $ 3 million and $ 5 million. The second tranche (“Tranche 2”) consisted of $ 5 million, which would have been disbursed at the Company’s request between July 1, 2025 and December 31, 2025, subject to the Company receiving FDA marketing approval of its DrugSorb-ATR application, which the Company did not receive. The proceeds from the Avenue Capital Commitment were used to pay off the existing outstanding debt with Bridge Bank and were additionally used for working capital purposes and to fund general business requirements. Amounts borrowed under the Avenue Capital Commitment bear interest at a variable rate per annum equal to the greater of (A) the Prime Rate plus five percent ( 5.00 %) or (B) thirteen and one-half percent ( 13.50 %). As additional consideration for the Commitment, on June 28, 2024, the Company also issued Avenue Capital Group with warrants with a fair value of $ 0.7 million to purchase an aggregate of 1,645,569 shares of the Company’s common stock for cash at the exercise price of $ 0.79 , which expire on June 28, 2029. The number of warrants is fixed; however, the exercise price may be adjusted down if the Company raises equity (excluding sales of equity utilizing the Company’s at-the-market equity facility) at a share price that is lower than $ 0.79 . These warrants meet the criteria for equity classification under ASC 815. The loan required interest-only payments for the first 24 months , through July 1, 2026, followed by equal monthly installments of principal plus accrued and unpaid interest until maturity, on July 1, 2027; provided, however, that if the Company had drawn the full amount of Tranche 2 by December 31, 2025, and achieves for the trailing six-month period ended June 30, 2026, at least $ 25 million of revenue, (the Interest only Milestone as defined in the Loan), the Interest only Period would have been extended by six months to January 1, 2027, followed by equal monthly installments of principal plus accrued and unpaid interest through January 1, 2028. On October 22, 2024, the Company announced that the FDA had accepted its application of DrugSorb-ATR, which was one of the two conditions required by the restricted cash debt covenant. Proceeds from the Rights Offering on January 10, 2025 satisfied the second condition of the debt covenant which allowed for the $ 5 million of restricted cash on the Company’s consolidated balance sheets to become unrestricted, and available for use. The Lenders were also granted the right while the Commitment is outstanding to convert up to an aggregate amount of $ 2 million of the principal amount of the outstanding Growth Capital Loans into the Company’s common stock at a fixed conversion price of 120 % of the Closing Price (as defined in the warrant) or $ 0.95 per share (the “Conversion Option”). The obligations under the Loan and Security Agreement are secured by a first priority security interest in favor of the Lenders with respect to the Company’s Shares (as defined in the Loan and Security Agreement) and the Company’s Collateral (as defined in the Loan and Security Agreement), which includes the Company’s intellectual property, pursuant to that certain Intellectual Property Security Agreement, dated as of June 28, 2024, by and between the Company and the Administrative Collateral Agent. ​ November 13, 2025 Amended Loan and Security Agreement On November 13, 2025, the Company and Avenue Capital Group entered into the First Amendment to Loan Documents (the “Amended Loan and Security Agreement”), amending the Company’s Loan and Security Agreement, dated June 28, 2024, as supplemented. The Amended Loan and Security Agreement funded an additional aggregate $ 2.5 million (“Tranche 2a”) from Avenue Capital Group in November 2025 and extended the interest-only period from July 1, 2026 to December 31, 2026, followed by equal monthly installments of principal plus accrued and unpaid interest until maturity on July 1, 2027. The Company would have access to an additional aggregate $ 2.5 million (“Tranche 2b”) from Avenue Capital Group and receive a further six-month extension of the interest only period to the July 1, 2027 maturity date, subject to FDA approval of DrugSorb-ATR, between January 1, 2026 and December 31, 2026, which approval is now expected beyond this time frame. Tranche 2a and Tranche 2b, in the aggregate, replace Tranche 2 of the Loan. The Amended Loan and Security Agreement requires that the Company maintain revenue and certain operating cash burn targets prior to FDA approval of DrugSorb-ATR. Upon a prepayment, the Company would incur a fee ranging from 1 % to 3 % of the outstanding principal, depending on the time of payment in relation to the maturity date. The Loan and Security Agreement includes customary loan conditions, company representations and warranties, company affirmative covenants and company negative covenants for secured transactions of this type. As of March 31, 2026, the Company was in compliance with these covenants. The Company evaluated the amendment in accordance with applicable accounting guidance and determined that the amendment should be accounted for as a debt modification. As a result of the debt amendment, there were no write-offs of existing unamortized deferred 16 Table of Contents financing costs. The Company recorded additional deferred financing costs of approximately $ 0.6 million related to the fair value of warrants issued in connection with the debt amendment. The Company incurred approximately $ 0.1 million of third-party costs which were recorded as other expenses related to financing. The Company’s obligations under the Amended Loan and Security Agreement are joint and several (see June 28, 2024 Loan for obligation under original loan agreement). Under the terms of the Amended Loan and Security Agreement, the Company issued additional warrants to Avenue Capital Group to purchase 1,428,571 shares of the Company’s common stock for cash at the exercise price of $ 0.70 , which expire on November 13, 2030. The number of warrants and exercise price are fixed. Debt Discounts Related to Avenue Capital Group Agreements In connection with the long-term debt transactions, the Company recorded the following discounts: ​ ​ ​ ​ ​ ​ ​ ​ ​ (amounts, in thousands) Fair value of warrants issued to Avenue Capital Group - 2024 ​ $ 690 Fair value of warrants issued to Avenue Capital Group - 2025 ​ 627 Final fee ​ 900 Debt issuance cost ​ 498 Commitment fee paid on the Closing Date ( 1 % of the Avenue Capital Group commitment) ​ 200 Total discounts recorded at inception against Avenue Capital Group Long-Term Debt ​ $ 2,915 ​ The Company amortizes debt discounts as interest expense using the interest method through the maturity date. The loan and security agreement included a final payment upon maturity of $ 0.9 million. The Company accretes the final payment as interest expense using the interest method through the maturity date. The Company’s obligations under the Loan and Security Agreement are joint and several. The obligations under the Loan and Security Agreement are secured by a first priority security interest in favor of the Lenders with respect to the Company’s Shares (as defined in the Loan and Security Agreement) and the Company’s Collateral (as defined in the Loan and Security Agreement), which includes the Company’s intellectual property, pursuant to that certain Intellectual Property Security Agreement, dated as of June 28, 2024, by and between the Company and the Administrative and Collateral Agent. ​ Long-term debt as of March 31, 2026 and December 31, 2025 consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ ​ ​ December 31, 2025 ​ ​ ​ ​ (amounts, in thousands) Principal amount ​ ​ ​ $ 17,500 ​ $ 17,500 Plus: final payment upon maturity ​ ​ 900 ​ ​ 900 Total principal ​ ​ 18,400 ​ ​ 18,400 Less: unamortized debt discount ​ ​ ( 1,441 ) ​ ​ ( 1,733 ) Subtotal ​ 16,959 ​ ​ 16,667 Less: current maturities, net of debt discount ​ ( 6,646 ) ​ ​ — Long-term debt net of current maturities and debt discount ​ $ 10,313 ​ $ 16,667 ​ As of March 31, 2026, principal payments of long-term debt are due as follows: ​ ​ ​ ​ 2026 ​ ​ ​ $ — 2027 ​ 18,400 Total ​ $ 18,400 ​ 17 Table of Contents Bridge Bank On June 28, 2024, concurrent with the closing of the Avenue Capital Group financing discussed above, the Company paid off its previously outstanding debt with Bridge Bank, a division of Western Alliance Bank (the “Bank”). As of March 31, 2026, the following commitments survive after the termination of the Bridge Bank Amended and Restated Loan and Security Agreement and related amendments: 2022 Success Fee Letter Pursuant to the 2022 Success Fee Letter, the Company will pay to the Bank a success fee equal to (i) 1 % of $ 5 million if the Company draws down the first tranche of the Company’s previously outstanding term loan with the Bank(the “Term C Loan”) and is payable only if the Company’s stock price equals or exceeds $ 8 for five consecutive trading days; (ii) 1.5 % of $ 5 million if the Company draws down the second tranche of the Term C Loan and is payable only if the Company’s stock price equals or exceeds $ 10 for five consecutive trading days; and (iii) 2 % of $ 5.0 million if the Company draws down the third tranche of the Term C Loan and is payable only if the Company’s stock price equals or exceeds $ 12 for five consecutive trading days (together, the “Success Fee”). The Company may pay the Success Fee in cash or in shares of common stock, at the Company’s sole discretion. The right of the Bank to receive the Success Fees and the obligation of the Borrower to pay the Success Fees hereunder shall terminate on the date that is fifth anniversary of the funding date of the last Term C Loans made but shall survive the termination of the Loan Agreement and any prepayment of the Term C Loans. Prior to repayment of the loan on June 28, 2024, the Company had drawn the first tranche of the loan and would be subject to total success fees of less than $ 0.1 million if the stock price exceeds $ 8.00 for five consecutive trading days prior to December 27, 2027. The Company did no t draw down the second or third tranche prior to repayment of the loan. The termination date of the 2022 Success Fee Letter is December 27, 2027. ​ 7. COMMITMENTS AND CONTINGENCIES Litigation The Company is, from time to time, subject to claims and litigation arising in the ordinary course of business. We are not currently a party to any litigation or legal proceedings that, in the opinion of management, are likely to have a material adverse effect on the Company’s business. The Company intends to defend vigorously against any future claims and litigation. Royalty Agreements The Company is, at times, party to various royalty and license agreements that require the payment of royalty fees. Currently the Company records royalty expense of 3 % on sales of Covered Products, under the ROKK, LLC Royalty Contract. Royalty expense amounted to approximately $ 0.3 million for each of the three months ended March 31, 2026, and 2025. Royalty expense is included in selling, general and administrative expenses in the condensed consolidated statements of operations and comprehensive loss. 401(k) Plan ​ Employees are eligible to participate in the Company’s 401(k) plan on the first day of the calendar quarter following three full months of employment. Participants may defer up to 100 % of their eligible compensation subject to certain Internal Revenue Code limitations. Matching contributions amounted to approximately $ 0.1 million for each of the three months ended March 31, 2026 and 2025. ​ 18 Table of Contents 8. LEASES The Company has operating leases that primarily relate to operating facilities in both the United States and Germany. The Company leases its operating facilities under operating lease arrangements with varying expiration dates through March 2037. As of March 31, 2026, the remaining lease term of the Company’s operating leases ranges from six to twelve years . Supplemental statement of operations and cash flows related to the operating lease liability is as follows (excluding variable payments and expenses): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ (amounts, in thousands) Cash paid in connection with the operating leases ​ $ 431 ​ $ 421 ​ Supplemental balance sheet information related to operating leases is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ (amounts, in thousands) ​ Right-of-use asset ​ $ 10,769 ​ $ 10,924 ​ Lease liability - current portion ​ $ 565 ​ $ 541 ​ Lease liability - net of current portion ​ ​ 11,752 ​ ​ 11,903 ​ Total lease liability ​ $ 12,317 ​ $ 12,444 ​ Weighted average discount rate ​ 9.8 % ​ 9.8 % Weighted average remaining lease term ​ ​ 10.7 years ​ ​ 11.4 years ​ ​ Lease Expense The components of lease expense were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ 2026 ​ ​ ​ 2025 ​ ​ (amounts, in thousands) Operating lease cost ​ $ 452 ​ $ 434 Variable lease cost ​ ​ 172 ​ ​ 127 Total lease cost ​ $ 624 ​ $ 561 ​ As of March 31, 2026, the maturities of the operating lease liability are as follows: ​ ​ ​ ​ Remainder of 2026 ​ ​ ​ $ 1,304 2027 ​ 1,777 2028 ​ 1,819 2029 ​ 1,863 2030 ​ 1,907 Thereafter ​ 11,643 Future operating lease payments ​ ​ 20,313 Imputed interest ​ ​ ( 7,996 ) Total operating lease liability ​ $ 12,317 ​ ​ ​ 19 Table of Contents 9. NET LOSS PER SHARE Basic loss per share and diluted loss per share for the three months ended March 31, 2026 and 2025 have been computed by dividing the net loss for each respective period by the weighted average number of shares outstanding during that period. Net income or loss per common share is calculated as basic net income per share and diluted net income per share, in the case of recognizing net income. Basic net income per share excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted net income per share is computed in the same manner as basic net income after assuming issuance of common stock for all potentially dilutive equivalent shares, which includes the potential dilution that could occur: (i) if the RSUs with service conditions were fully vested (using the treasury stock method); (ii) if all of the Company’s outstanding stock options that are in-the-money were exercised (using the treasury stock method); (iii) if the RSUs with service and market conditions were considered contingently issuable; (iv) if the RSUs with service and performance conditions were considered contingently issuable; (v) if outstanding warrants were exercised; and (vi) if convertible debt was converted to common stock. The computation of diluted net loss per share does not assume conversion, exercise or contingent exercise of securities that would have an anti-dilutive effect on earnings. The following table summarizes earnings per share calculations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Basic and Diluted ​ (amounts, in thousands, except share and per share data) Numerator: ​ ​ ​ ​ Net loss ​ $ ( 5,129 ) ​ $ ( 1,479 ) Denominator: ​ ​ ​ ​ ​ ​ Basic and diluted weighted average common shares outstanding ​ 62,738,827 ​ 60,731,929 Basic and diluted earnings per common share ​ $ ( 0.08 ) ​ $ ( 0.02 ) ​ The following table presents the potentially dilutive shares that were excluded from the computation of diluted net loss per share of common stock attributable to common stockholders, because their effect was anti-dilutive: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of ​ ​ ​ ​ March 31, 2026 ​ ​ ​ March 31, 2025 Stock options outstanding 11,460,596 12,299,757 Warrants for common stock 5,780,701 4,352,130 RSUs* 3,423,301 3,398,836 Convertible securities 2,105,263 2,105,263 * Total number of RSUs include 2,635,500 and 2,787,500 units with a Change in Control-Based performance condition as of March 31, 2026 and March 31, 2025, respectively. ​ 10. SEGMENT INFORMATION ​ The Company operates and manages its business as one reportable segment and one operating segment, which is the business of developing, testing and selling blood purification medical devices. The Company’s chief operating decision maker, or CODM, is the Company’s Chief Executive Officer. The CODM assesses performance of the segment and decides how to allocate resources based on revenue growth, gross margin, operating expenses, adjusted net loss, adjusted EBITDA (EBITDA as defined below, adjusted for stock-based compensation, (gain) loss on foreign currency transactions, and restructuring) and cash burn (cash used in operating and investing activities) derived from the Company’s consolidated results of operations and cash flows and total assets of the segment. The measure of segment assets is reported on the consolidated balance sheets as total consolidated assets. All material long-lived assets are located in New Jersey, and Berlin, Germany. Long-lived assets consist of property and equipment, net and operating lease right-of-use assets. Factors used in determining the reportable segment include the nature of the Company’s operations, the organizational and reporting structure and the type of information reviewed by the CODM to allocate resources and evaluate financial performance. 20 Table of Contents The Company operates under one reportable business segment for which segment disclosure is consistent with the management decision making process that determines the allocation of resources and the measuring of performance. The components presented in the condensed consolidated statements of operations and comprehensive loss also present the components of the Company’s single operating segment. The CODM uses financial metrics to evaluate the Company’s spending and monitor budget versus actual results. The monitoring of budgeted versus actual results is used in assessing performance of the segment and in establishing resource allocation across the organization. The financial metrics used by the CODM in evaluating the Company’s spending and monitoring budget versus actual results are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2026 2025 ​ ​ (amounts, in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue ​ $ 8,864 ​ $ 8,727 ​ Gross profit ​ $ 6,130 ​ $ 6,207 ​ Gross margin ​ 69 % 71 % Total operating expenses ​ $ 9,174 ​ $ 10,095 ​ Loss from operations ​ $ ( 3,044 ) ​ $ ( 3,888 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ EBITDA and Adjusted EBITDA (both non-GAAP measures): ​ ​ ​ ​ ​ Net loss ​ $ ( 5,129 ) ​ $ ( 1,479 ) ​ Interest expense, net ​ 857 ​ 605 ​ Depreciation and amortization expense ​ 350 ​ 369 ​ Earnings (Loss) before interest expense, income taxes, depreciation and amortization (“EBITDA”), a non-GAAP measure ​ ( 3,922 ) ​ ( 505 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock-based compensation ​ 544 ​ 818 ​ (Gain) loss on foreign currency transactions ​ 1,228 ​ ( 3,014 ) ​ Adjusted EBITDA, a non-GAAP measure ​ $ ( 2,150 ) ​ $ ( 2,701 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjusted net loss, a non-GAAP measure: ​ ​ ​ ​ ​ Net loss ​ $ ( 5,129 ) ​ $ ( 1,479 ) ​ Stock-based compensation ​ 544 ​ 818 ​ (Gain) loss on foreign currency transactions ​ 1,228 ​ ( 3,014 ) ​ Adjusted net loss, a non-GAAP measure ​ $ ( 3,357 ) ​ $ ( 3,675 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Total cash used in operating and investing activities ​ $ ( 1,208 ) ​ $ ( 3,513 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ December 31, 2025 ​ ​ ​ ​ (amounts, in thousands) Total assets ​ $ 40,562 ​ $ 44,182 ​ 21 Table of Contents Significant expense categories regularly provided to the CODM consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ ​ 2026 ​ 2025 ​ ​ (amounts, in thousands) ​ ​ ​ ​ ​ ​ ​ Research and development: ​ ​ ​ ​ Clinical expenses ​ $ 459 ​ $ 979 Other research and development expenses ​ 566 ​ 684 Total research and development ​ $ 1,025 ​ $ 1,663 ​ ​ ​ ​ ​ ​ ​ Selling, general and administrative ​ ​ ​ ​ Royalty expense ​ $ 256 ​ $ 258 Stock-based compensation ​ 418 ​ 627 Legal, financial and consulting ​ 920 ​ 638 Other general and administrative ​ 6,555 ​ 6,909 Total selling, general and administrative ​ $ 8,149 ​ $ 8,432 ​ Amounts presented within research and development expenses in the table above are inclusive of stock-based compensation expense. Refer to Note 4, Common Stock, Stock-Based Compensation and Warrants, for additional information. Capital expenditures of the segment totaled $ 0.1 million for the each of the three months ended March 31, 2026 and 2025. ​ 11. RESTRUCTURING ​ Restructuring Plan During the fourth quarter of 2025 and into the first quarter of fiscal 2026, the Company initiated a strategic workforce and cost reduction plan (the “Strategic Workforce and Cost Reduction Plan”) to reduce costs, optimize operations, and accelerate a path to cash-flow profitability. This initiative follows a comprehensive review of the Company’s cost structure and operating model. As part of the Strategic Workforce and Cost Reduction Plan, the Company reduced its workforce by approximately 10 %, and reduced and realigned operating and production expenses. Restructuring Charges The table below sets forth the estimated amount of unpaid restructuring charges as of March 31, 2026 and December 31, 2025 included in accrued expenses that are expected to be paid in less than one year. Total additions to unpaid restructuring charges are limited to workforce reductions as the other components of restructuring costs do not require cash payments. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of ​ ​ ​ ​ March 31, 2026 ​ ​ ​ December 31, 2025 ​ ​ ​ ​ (amounts, in thousands) Restructuring charges, beginning of the year ​ $ 297 ​ $ — Additions ​ 144 ​ 408 Payments ​ ( 313 ) ​ ( 111 ) Restructuring charges unpaid and outstanding, end of period ​ $ 128 ​ $ 297 ​ ​ 12. SUBSEQUENT EVENTS Management has evaluated subsequent events through the date of issuance of these condensed consolidated financial statements and has determined that there are no subsequent events outside the ordinary scope of business that require adjustment to, or disclosure in, the condensed consolidated financial statements. ​ 22 Table of Contents