Catheter Precision, Inc. 10-Q

ITEM 1. FINANCIAL STATEMENTS CATHETER PRECISION, INC. Condensed Consolidated Balance Sheets (in thousands, except per share data) September 30, 2025 December 31, 2024 (Unaudited) ASSETS Current Assets Cash and cash equivalents $ 1,075 $ 2,873 Trading debt securities 981 — Accounts receivable, net 123 70 Inventories 34 33 Prepaid expenses and other current assets 254 316 Total current assets 2,467 3,292 Property and equipment, net 72 91 Operating lease right-of-use assets, net 184 105 Intangible assets, net 22,742 24,274 Other non-current assets 8 8 TOTAL ASSETS $ 25,473 $ 27,770 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $ 1,079 $ 230 Accrued expenses 1,563 1,548 Short-term notes payable — 177 Current portion of notes payable due to related parties 1,696 — Short-term notes payable of variable interest entities due to related parties 303 — Current portion of royalties payable due to related parties 613 177 Current portion of operating lease liabilities 71 98 Total current liabilities 5,325 2,230 Royalties payable due to related parties 10,743 9,068 Operating lease liabilities 114 13 Notes payable of variable interest entities, net of discount 1,297 — Notes payable due to related parties — 1,561 Deferred tax liability 1,545 3,141 Total liabilities 19,024 16,013 Commitments and Contingencies (see Note 16) Stockholders' Equity Preferred Stock, $ 0.0001 par value, 10,000,000 shares authorized Series A Convertible Preferred Stock, $ 0.0001 par value, 7,203 shares designated; 0 shares issued and outstanding as of September 30, 2025 and December 31, 2024 — — Series B Convertible Preferred Stock, $ 0.0001 par value, 3,000 shares designated; 2,229 and 0 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively — — Series X Convertible Preferred Stock, $ 0.0001 par value, 15,404 shares designated; 12,656 shares issued and outstanding as of September 30, 2025 and December 31, 2024 — — Common stock, $ 0.0001 par value, 60,000,000 shares authorized; 1,647,105 and 421,296 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively — — Additional paid-in capital 310,539 304,109 Accumulated deficit ( 303,757 ) ( 292,352 ) Total stockholders' equity attributable to Catheter Precision, Inc. 6,782 11,757 Non-controlling interest ( 333 ) — Total stockholders' equity 6,449 11,757 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 25,473 $ 27,770 See accompanying notes to unaudited condensed consolidated financial statements. 3 Table of Contents CATHETER PRECISION, INC. Condensed Consolidated Statements of Operations (in thousands, except per share data) (Unaudited) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2025 2024 2025 2024 Revenues $ 226 $ 96 $ 581 $ 271 Cost of revenues 18 10 43 31 Gross profit 208 86 538 240 Operating expenses Selling, general and administrative 2,953 2,882 9,319 8,251 Research and development 276 63 534 181 Acquired in-process research and development — — 1,967 — Total operating expenses 3,229 2,945 11,820 8,432 Operating loss ( 3,021 ) ( 2,859 ) ( 11,282 ) ( 8,192 ) Other income (expenses), net Interest income 10 7 31 47 Interest expense ( 35 ) — ( 61 ) ( 4 ) Interest expense due to related parties ( 48 ) ( 32 ) ( 138 ) ( 36 ) Change in fair value of royalties payable due to related parties 726 ( 1,233 ) ( 2,104 ) ( 2,823 ) Change in fair value of trading debt securities 107 — 117 — Other expenses, net ( 5 ) ( 3 ) ( 6 ) ( 7 ) Total other income (expenses), net 755 ( 1,261 ) ( 2,161 ) ( 2,823 ) Loss from operations before income tax benefit (provision) ( 2,266 ) ( 4,120 ) ( 13,443 ) ( 11,015 ) Income tax benefit (provision) ( 78 ) — 1,596 — Net loss ( 2,344 ) ( 4,120 ) ( 11,847 ) ( 11,015 ) Less: Net loss attributable to non-controlling interest ( 93 ) — ( 442 ) — Net loss attributable to Catheter Precision, Inc. $ ( 2,251 ) $ ( 4,120 ) $ ( 11,405 ) $ ( 11,015 ) Net loss per share attributable to Catheter Precision, Inc., basic and diluted $ ( 1.70 ) $ ( 38.17 ) $ ( 13.02 ) $ ( 176.27 ) Weighted-average common shares used in computing net loss per share, basic and diluted 1,320,554 107,952 875,627 62,488 See accompanying notes to unaudited condensed consolidated financial statements. 4 Table of Contents CATHETER PRECISION, INC. Condensed Consolidated Statements of Stockholders' Equity (in thousands, except share data) (Unaudited) Total Series A Convertible Preferred Stock Series B Convertible Preferred Stock Series X Convertible Preferred Stock Common Stock Additional Paid-In Accumulated Catheter Precision Inc. Stockholders' Non-controlling Total Stockholders' Shares Amount Shares Amount Shares Amount Shares Amount Capital Deficit Equity Interest Equity Balance at December 31, 2024 — $ — — $ — 12,656 $ — 421,296 $ — $ 304,109 $ ( 292,352 ) $ 11,757 $ — $ 11,757 Stock-based compensation — — — — — — — — 91 — 91 — 91 Issuance of common stock for vested restricted stock awards — — — — — — 2,631 — — — — — — Issuance of common stock for asset acquisition (see Note 14) — — — — — — 14,473 — 113 — 113 — 113 Issuance of common stock upon release of Prepaid Series Warrants (see Note 11) — — — — — — 49,421 — — — — — — Net loss — — — — — — — — — ( 4,045 ) ( 4,045 ) — ( 4,045 ) Balance at March 31, 2025 — — — — 12,656 — 487,821 — 304,313 ( 296,397 ) 7,916 — 7,916 Stock-based compensation — — — — — — — — 98 — 98 — 98 Issuance of common stock for vested restricted stock awards — — — — — — 2,632 — — — — — — Issuance of common stock for asset acquisition (see Note 14) — — — — — — 52,631 — 280 — 280 — 280 Issuance of common stock upon release of Prepaid Series Warrants (see Note 11) — — — — — — 113,526 — — — — — — Issuance of preferred stock and warrants under the May 2025 PIPE Financing, net of issuance costs — — 3,000 — — — — — 2,034 — 2,034 — 2,034 Issuance of common stock upon the ATM Offering, net of issuance costs — — — — — — 220,185 — 1,570 — 1,570 — 1,570 Conversion of preferred stock — — ( 771 ) — — — 115,913 — — — — — — Issuance of VIE shares to non-controlling interest — — — — — — — — — — — 109 109 Net loss — — — — — — — — — ( 5,109 ) ( 5,109 ) ( 349 ) ( 5,458 ) Balance at June 30, 2025 — — 2,229 — 12,656 — 992,708 — 308,295 ( 301,506 ) 6,789 ( 240 ) 6,549 Stock-based compensation — — — — — — — — 70 — 70 — 70 Issuance of common stock for vested restricted stock awards — — — — — — 6,000 — — — — — — Issuance of common stock upon the ATM Offering, net of issuance costs — — — — — — 648,397 — 2,174 — 2,174 — 2,174 Net loss — — — — — — — — — ( 2,251 ) ( 2,251 ) ( 93 ) ( 2,344 ) Balance at September 30, 2025 — $ — 2,229 $ — 12,656 $ — 1,647,105 $ — $ 310,539 $ ( 303,757 ) $ 6,782 $ ( 333 ) $ 6,449 Total Series A Convertible Preferred Stock Series B Convertible Preferred Stock Series X Convertible Preferred Stock Common Stock Additional Paid-In Accumulated Catheter Precision Inc. Stockholders' Non-controlling Total Stockholders' Shares Amount Shares Amount Shares Amount Shares Amount Capital Deficit Equity Interest Equity Balance at December 31, 2023 4,578 $ — — $ — 12,656 $ — 36,993 $ — $ 296,902 $ ( 275,709 ) $ 21,193 $ — $ 21,193 Stock-based compensation — — — — — — — — 6 — 6 — 6 Conversion of Series A Convertible Preferred Stock ( 875 ) — — — — — 2,877 — — — — — — Net loss — — — — — — — — — ( 2,675 ) ( 2,675 ) — ( 2,675 ) Balance at March 31, 2024 3,703 — — — 12,656 — 39,870 — 296,908 ( 278,384 ) 18,524 — 18,524 Stock-based compensation — — — — — — — — 13 — 13 — 13 Net loss — — — — — — — — — ( 4,220 ) ( 4,220 ) — ( 4,220 ) Balance at June 30, 2024 3,703 — — — 12,656 — 39,870 — 296,921 ( 282,604 ) 14,317 — 14,317 Issuance of common stock and other equity-classified contracts from September 2024 Public Offering, net of issuance costs — — — — — — 42,415 — 2,612 — 2,612 — 2,612 Issuance of common stock upon exercise of Pre-Funded Warrants (see Note 11) — — — — — — 87,261 — — — — — — Conversion of Series A Convertible Preferred Stock ( 3,703 ) — — — — — 12,177 — — — — — — Stock-based compensation — — — — — — — — 17 — 17 — 17 Net loss — — — — — — — — — ( 4,120 ) ( 4,120 ) — ( 4,120 ) Balance at September 30, 2024 — $ — — $ — 12,656 $ — 181,723 $ — $ 299,550 $ ( 286,724 ) $ 12,826 $ — $ 12,826 See accompanying notes to unaudited condensed consolidated financial statements. 5 Table of Contents CATHETER PRECISION, INC. Condensed Consolidated Statements of Cash Flows (in thousands) (Unaudited) For the Nine Months Ended September 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ ( 11,847 ) $ ( 11,015 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 1,588 1,578 Stock-based compensation 259 36 Change in fair value of royalties payable due to related parties 2,104 2,823 Change in fair value of trading debt securities ( 117 ) — Deferred income tax benefit ( 1,596 ) — Acquired in-process research and development 1,967 — Amortization of discount on note payable 27 — Changes in operating assets and liabilities: Accounts receivable ( 53 ) 30 Inventories ( 21 ) ( 7 ) Prepaid expenses and other current assets 62 108 Operating lease right-of-use assets and lease liabilities ( 5 ) ( 1 ) Current portion of royalties payable due to related parties 7 17 Accounts payable 664 244 Accrued expenses 15 ( 236 ) Interest payable due to related parties 138 16 Interest accrued on notes payable of variable interest entities 24 — Net cash used in operating activities ( 6,784 ) ( 6,407 ) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of acquired in-process research and development ( 34 ) — Purchases of property and equipment ( 17 ) ( 67 ) Net cash used in investing activities ( 51 ) ( 67 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of Series B Convertible Preferred Stock and other equity-classified warrants, net of issuance costs 1,170 — Proceeds from issuance of common stock and other equity-classified contracts from the September 2024 Public Offering, net of issuance costs — 2,612 Proceeds from issuance of common stock under ATM, net of issuance costs 3,744 — Proceeds from notes payable due to related parties 300 1,500 Payments on notes payable ( 177 ) ( 184 ) Proceeds from notes payable — 249 Net cash provided by financing activities 5,037 4,177 NET CHANGE IN CASH AND CASH EQUIVALENTS ( 1,798 ) ( 2,297 ) CASH AND CASH EQUIVALENTS, beginning of period 2,873 3,565 CASH AND CASH EQUIVALENTS, end of period $ 1,075 $ 1,268 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash paid for interest $ 6 $ 25 SUPPLEMENTAL SCHEDULE OF NONCASH FINANCING AND INVESTING ACTIVITIES Property and equipment reclassified from inventories $ 20 $ 19 Note payable of variable interest entities issued in connection with an asset acquisition $ 1,246 $ — Fair value of common stock issued in connection with asset acquisitions $ 393 $ — Consideration for asset acquisition included in accounts payable $ 185 $ — Consideration for asset acquisition included in non-controlling interest $ 109 $ — Fair value of trading debt securities obtained as consideration for the Series B Convertible Preferred Stock and other equity-classified warrants $ 864 $ — Operating right-of-use asset obtained in exchange for new operating lease liabilities $ 142 $ — See accompanying notes to unaudited condensed consolidated financial statements. 6 Table of Contents CATHETER PRECISION, INC. Notes to Condensed Consolidated Financial Statements (Unaudited) Note 1. Organization and Nature of Operations The Company Catheter Precision, Inc. ("Catheter" or the "Company”) was incorporated in California on September 4, 2002, and reincorporated in Delaware in July 2018. On January 9, 2023, Catheter entered into the Amended and Restated Agreement and Plan of Merger (the "Merger Agreement") with Catheter Precision, Inc. (“Old Catheter”), a privately held Delaware corporation. Under the terms of the Merger Agreement, Old Catheter became a wholly owned subsidiary of Catheter, together referred to as the Company, in a stock-for-stock merger transaction (the "Merger"). The Company’s current operating activities primarily relate to Old Catheter’s historical business, which comprises the design, manufacture and sale of new and innovative medical technologies in the field of cardiac electrophysiology (“EP”). One of the Company’s two primary products is the VIVO System, which is an acronym for View into Ventricular Onset (“VIVO” or “VIVO System”). VIVO is a non-invasive imaging system that offers 3D cardiac mapping to help with localizing the sites of origin of idiopathic ventricular arrhythmias in patients with structurally normal hearts prior to EP procedures. The VIVO System is commercially available in the European Union and has been placed at several hospitals in Europe. United States Food and Drug Administration ("FDA") 510 (k) clearance was received, and the Company began commercial sales of VIVO in 2021 in the United States. The Company’s second primary product, LockeT® (“LockeT”), is a suture retention device indicated for wound healing by distributing suture tension over a larger area in the patient in conjunction with a figure of eight suture closure and is intended to temporarily secure sutures and aid clinicians in locating and removing sutures efficiently. In addition, LockeT is a sterile, Class I product that was registered with the FDA in February 2023, at which time initial shipments began to distributors. Clinical studies for LockeT began during the year ended December 31, 2023. These studies are planned to show the product’s effectiveness and benefits, including faster wound closure and patient ambulation/discharge, potentially resulting in higher procedural volumes and lower costs for the healthcare provider and/or insurance payor. This information is intended to provide crucial data that will improve marketability by establishing the effectiveness of the medical device and a competitive advantage. The Company recorded its first commercial sale of LockeT to distributors in May 2024. In April 2025, a U.S. patent for the product was granted by the United States Patent and Trademark Office. In April 2025, the Company also obtained the CE Mark approval for LockeT, permitting the marketing and sale of LockeT in the European Union, Switzerland and Turkey. Since receipt of the CE Mark, the Company has signed agreements with new distributors in the United Kingdom, Italy, Spain, Portugal, Switzerland, the Middle East, South Africa and Brunei. The Company’s product portfolio also includes the Amigo® Remote Catheter System (the "AMIGO" or "AMIGO System"), a robotic arm that serves as a catheter control device. The Company owns the intellectual property related to AMIGO, and this product is under consideration for future research and development of a generation 2 product. On February 17, 2025, the Company formed a new subsidiary, Cardionomix, Inc. ("Cardionomix"), to acquire certain assets previously held by Cardionomic, Inc. ("Cardionomic"), a third party entity that has ceased operations. The Company owns 82 % of Cardionomix’s issued and outstanding common stock. The Company’s Chief Executive Officer and Chairman of the Board of Directors and certain of his affiliates own 12 % of the subsidiary’s issued and outstanding common stock. The remaining 6 % of the subsidiary’s outstanding common stock was issued to certain third parties as finder's fees in connection with the asset acquisition. On May 5, 2025, Cardionomix acquired certain assets primarily related to Cardionomics' Cardiac Pulmonary Nerve Stimulation (“CPNS”) System, which is a novel technology for the late-stage treatment of acute decompensated heart failure. The CPNS System consists of electrical simulation via a temporary catheter inserted into the pulmonary artery that targets the root cause of heart failure by stimulating the autonomic cardiac nerves to restore autonomic balance. The CPNS System has not yet left the development stage or been submitted for regulatory approval. On June 20, 2025, the Company formed a new subsidiary, KardioNav, Inc. ("KardioNav"), to pursue the advancement, development, and commercialization of electrophysiology mapping technologies. The Company assigned certain intellectual property related to the VIVO System which it is not currently developing to KardioNav, while Chelak iECG ("Chelak"), an unrelated third party, assigned certain intellectual property related to technology designed to interface with implanted cardiac devices to facilitate improved pre-ablation mapping and localization of arrhythmogenic tissue. The intellectual property assigned by Chelak consisted solely of patents and related know-how at a conceptual stage, the development of which has not yet been advanced into a developed technology or product. KardioNav intends to integrate the Company’s VIVO mapping intellectual property with Chelak’s patents to develop a system that interfaces with implanted cardiac devices to enable improved pre-ablation mapping and more precise localization of arrhythmogenic tissue. Research and development activities in animals and humans commenced during September 2025. The Company owns 57 % of KardioNav's issued and outstanding common stock, while Chelak owns 33 % of the subsidiary's issued and outstanding common stock. The Company's Chief Executive Officer and Chairman of the Board of Directors and certain of his affiliates own the remaining 10 % of the subsidiary's issued and outstanding common stock. 7 Table of Contents Reverse Stock Split On January 13, 2025, at a Special Meeting of Stockholders of the Company, the stockholders approved an amendment to the Amended and Restated Certificate of Incorporation of the Company, which included an increase in the authorized capital stock to 70 million shares, consisting of 60 million shares of common stock and 10 million shares of preferred stock. The amendment was effected on January 13, 2025. On October 10, 2025, at a Special Meeting of Stockholders of the Company, the stockholders approved an additional amendment to the Amended and Restated Certificate of Incorporation of the Company, which included an increase in the authorized capital stock to 510 million shares, consisting of 500 million shares of common stock and 10 million shares of preferred stock. The amendment was effected on October 17, 2025. On July 25, 2025, at the annual meeting of stockholders of the Company, the stockholders approved an amendment to the Amended and Restated Certificate of Incorporation of the Company (the “Amendment”) to effect a reverse stock split within specified parameters. The Board approved the Amendment and set the ratio of the reverse stock split at 1 -for- 19. The Amendment was effective August 15, 2025, effecting a reverse stock split in which each nineteen ( 19 ) shares of the Company’s common stock, par value $ 0.0001 per share, issued and outstanding immediately prior to the effective time, automatically combined into one ( 1 ) validly issued, fully paid and non-assessable share of the Company’s common stock, par value $ 0.0001 per share. No fractional shares were issued as a result of the reverse stock split. Stockholders who would otherwise have been entitled to receive a fractional share were entitled to receive their pro rata portion of the net proceeds obtained from the aggregation and sale by the exchange agent of the fractional shares resulting from the reverse stock split (reduced by any customary brokerage fees, commissions and other expenses). All references to share and per share amounts for all periods presented in the unaudited condensed consolidated financial statements have been retrospectively restated to reflect this reverse stock split. All rights to receive shares of common stock under outstanding securities, including but not limited to, warrants and options, were adjusted to give effect to the reverse stock split. Furthermore, proportionate adjustments were made to the per share exercise price and the number of shares of common stock that may be purchased upon exercise of outstanding warrants and stock options granted by the Company, and the number of shares of common stock reserved for future issuance under the Company’s Equity Incentive Plan. Going Concern The unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities in the normal course of business, and do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or amounts and classification of liabilities that may result from uncertainty related to its ability to continue as a going concern. The Company has incurred recurring net losses from operations and negative cash flows from operating activities since inception. For the nine months ended September 30, 2025 , the Company incurred $ 11.8 million in net losses and used $ 6.8 million in cash for operating activities. As of September 30, 2025 , the Company had an accumulated deficit of $ 303.8 million, working capital deficit of $ 2.9 million, and cash and cash equivalents of $ 1.1 million. Management expects operating losses and negative cash flows to continue for the foreseeable future. The Company needs to raise additional capital until it is able to generate revenues from operations sufficient to fund its research, development, and commercial operations. On May 12, 2025, the Company entered into a Securities Purchase Agreement for a private placement with three institutional investors. Pursuant to the Securities Purchase Agreement, the Company sold an aggregate of (i) 1,500 PIPE Units and (ii) 1,500 additional shares of a new series of the Company's preferred stock, designated Series B Convertible Preferred Stock, par value $ 0.0001 per share. Each PIPE Unit consisted of (i) one share of Series B Convertible Preferred Stock and (ii) Series L Warrants to purchase approximately 150 shares of common stock at an exercise price of $ 9.50 per share. As consideration for the PIPE Units and Series B Convertible Preferred Stock, the Company collected $ 1.5 million in cash and two secured Convertible Promissory Notes of QHSLab, Inc. (the “QHSLab Notes”), previously held by one of the investors, before deducting placement agent fees and offering expenses of $ 0.4 million (see Note 11, Equity Offerings). On May 19, 2025, the Company entered into an At Market Offering Agreement (the “ATM Agreement”) and, through September 30, 2025 , issued 868,582 shares of common stock under the ATM Agreement in exchange for gross proceeds of $ 4.0 million before deduction of commissions and offering expenses of $ 0.3 million. Management estimates that based on the Company’s liquidity resources and currently anticipated expenses, if it is unable to secure additional financing it will be unable to fund planned expenditures and meet obligations through the end of the fourth quarter 2025, and there is substantial doubt about the Company’s ability to continue as a going concern within 12 months from the date of issuance of the unaudited condensed consolidated financial statements. The accompanying unaudited condensed consolidated financial statements have been prepared on the basis of the Company continuing to operate in the normal course of business and do not reflect any adjustments to the assets and liabilities related to the substantial doubt of its ability to continue as a going concern. Management plans to raise additional capital through public or private equity or debt financing, or other innovative and specialty finance strategies such as crypto asset treasury policy, in order to fulfill its operating and capital requirements for at least 12 months from the date of the issuance of the unaudited condensed consolidated financial statements. However, the Company may not be able to secure such financing in a timely manner or on favorable terms, if at all. Furthermore, if the Company issues equity securities to raise additional funds, its existing stockholders may experience dilution, and the new equity securities may have rights, preferences and privileges senior to those of the Company’s existing stockholders. Note 2. Summary of Significant Accounting Policies Principles of Consolidation The unaudited condensed consolidated financial statements of the Company include the accounts of the Company, Old Catheter, Cardionomix and KardioNav. All intercompany transactions have been eliminated in consolidation. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP") applicable to interim financial statements. The Financial Accounting Standards Board (“FASB”) establishes these principles to ensure financial condition, results of operations, and cash flows are consistently reported. Any reference in these notes to applicable accounting guidance is meant to refer to the authoritative nongovernmental GAAP as found in the FASB Accounting Standards Codification ("ASC"). Certain footnotes and other financial information normally required by U.S. GAAP have been condensed or omitted in accordance with instructions to Form 10 -Q and Article 8 of Regulation S- X. In the opinion of management, such statements include all adjustments which are considered necessary for fair presentation of the unaudited condensed consolidated financial statements of the Company. The operating results presented herein are not necessarily an indication of the results that may be expected for the year. The unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in its Annual Report on Form 10 -K for the year ended December 31, 2024 , as filed with the Securities and Exchange Commission (“SEC”) on March 31, 2025. Use of Estimates The preparation of the unaudited condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The Company’s unaudited condensed consolidated financial statements are based upon a number of estimates including, but not limited to, the allowance for credit losses, evaluation of impairment of long-lived assets, valuation of long-lived assets and their associated estimated useful lives, reserves for warranty costs, evaluation of probable loss contingencies, fair value of royalties payable due to related parties, fair value of contingent consideration recorded in connection with an asset acquisition, fair value of trading debt securities, fair value of warrants issued, and fair value of equity awards granted. 8 Table of Contents Concentrations of Credit Risk The Company's financial instruments held during the nine month periods ended September 30, 2024 and September 30, 2025 that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company generally maintains cash and cash equivalent balances in various operating accounts at financial institutions with high quality credit ratings in amounts in excess of federally insured limits of $250,000. As of September 30, 2025 , the Company had deposits in financial institutions in excess of federally insured limits of $ 0.8 million . The Company has not experienced any losses related to its cash and cash equivalents and does not believe that it is subject to significant or unusual credit risk beyond the normal credit risk associated with commercial banking relationships. The Company has no significant off-balance sheet risk, such as foreign exchange contracts, option contracts, or other hedging arrangements. The Company extends credit to customers in the normal course of business. Concentrations of credit risk with respect to accounts receivable exist to the full extent of amounts presented in the condensed consolidated balance sheets. The Company does not require collateral from its customers to secure accounts receivable. The Company had 4 and 2 customers that individually accounted for 10% or more of total revenues included in the condensed consolidated statements of operations for the three and nine months ended September 30, 2025 . 4 customers represented 25 %, 14 %, 13 % and 10 % of total revenues for the three months ended September 30, 2025 and 2 customers represented 33 % and 13 % of total revenues for the nine months ended September 30, 2025 . The Company had 3 and 5 customers that individually accounted for more than 10% of total revenues for the three and nine months ended September 30, 2024 , respectively. 3 customers represented 38 %, 36 %, and 16 % of total revenues for the three months ended September 30, 2024 and 5 customers represented 30 %, 24 %, 12 %, 10 % and 10 % of total revenues for the nine months ended September 30, 2024 . The Company had 3 vendors that individually accounted for 10% or more of accounts payable included in the condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024 , respectively. 3 vendors represented 55 %, 16 % and 10 % of accounts payable as of September 30, 2025 and 3 vendors represented 28 %, 18 % and 15 % of accounts payable as of December 31, 2024. The Company had 3 and 4 customers that individually accounted for more than 10% of total accounts receivable included in the condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024, respectively. 3 customers represented 24 %, 23 % and 22 % of accounts receivable as of September 30, 2025 and 4 customers represented 46 %, 19 %, 16 % and 13 % of accounts receivable as of December 31, 2024 . The Company is not dependent on any single supplier for critical components. Reclassifications Certain prior period financial statement amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the Company's previously reported results of operations or accumulated deficit. In the current period, the Company (i) presents royalty fees incurred and payable based on actual sales of products as well as future estimated royalty payments payable within the next 12 months under current portion of royalties payable due to related parties in the condensed consolidated balance sheets, (ii) interest payable due to related parties and notes payable due to related parties is aggregated and presented as notes payable due to related parties in the condensed consolidated balance sheets, (iii) current portion of interest payable due to related parties and current portion of notes payable due to related parties is aggregated and presented as current portion of notes payable due to related parties in the condensed consolidated balance sheets and (iv) separately discloses interest expense due to related parties in the condensed consolidated statements of operations. For comparative purposes, amounts in the prior periods have been reclassified to conform to current period presentations. Segment Reporting The Company operates in one reportable segment, which includes all activities related to the marketing, sales, and development of medical technologies in the cardiac electrophysiology field. While the commercial efforts that coordinate the marketing, sales, and distribution of these products are organized by geographic region and product, all of these activities are supported by a single corporate team and distribution channels. The determination of a single reportable segment is consistent with the condensed consolidated financial information available and regularly reviewed by the Company’s chief operating decision maker (“CODM”). The CODM is the Company’s chief executive officer, who reviews and evaluates condensed consolidated net loss reported on the condensed consolidated statements of operations for purposes of assessing performance, making operating decisions, allocating resources and planning and forecasting for future periods. As the Company’s operations are managed at the consolidated level, there are no differences between the measurement of the reportable segments’ profit or losses and the Company’s condensed consolidated statements of operations. Segment asset measures are not used as a basis for the CODM to evaluate the performance of or to allocate resources to the segment. The following table summarizes segment revenues and significant segment expenses included in the measure of segment profit or loss (consolidated net loss) reviewed by the CODM (in thousands): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Revenues $ 226 $ 96 $ 581 $ 271 Less: Cost of revenues 18 10 43 31 Acquired in-process research and development expense — — 1,967 — Depreciation and amortization expense 528 530 1,588 1,578 Stock-based compensation expense 70 17 259 36 Salaries and benefits expense 1,027 1,236 3,651 2,957 Professional fees 582 373 1,626 1,419 Research and development expense 276 63 534 181 Interest income ( 10 ) ( 7 ) ( 31 ) ( 47 ) Interest expense 83 32 199 40 Change in fair value of royalties payable due to related parties ( 726 ) 1,233 2,104 2,823 Change in fair value of trading debt securities ( 107 ) — ( 117 ) — Income tax benefit 78 — ( 1,596 ) — Other segment items (1) 751 729 2,201 2,268 Segment net loss ( 2,344 ) ( 4,120 ) ( 11,847 ) ( 11,015 ) Reconciliation of net loss Adjustments and reconciling items — — — — Consolidated net loss $ ( 2,344 ) $ ( 4,120 ) $ ( 11,847 ) $ ( 11,015 ) ( 1 ) Other segment items include other expenses, net, consulting fees, investor relations and SEC fees, insurance fees, and other selling, general, and administrative expenses. Other selling, general, and administrative expenses primarily consist of travel expenses, computer and information technology expenses, and rent expenses. 9 Table of Contents Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity date of ninety days or less at the date of purchase to be cash equivalents. Cash and cash equivalents primarily represent funds invested in readily available checking and money market accounts. Fair Value Measurements Fair value represents the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants and is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. A three -tier fair value hierarchy is used to identify inputs used in measuring fair value as follows: Level 1 - Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets; Level 2 - Inputs other than the quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and Level 3 - Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions. Cash equivalents, prepaid expenses, accounts receivable, accounts payable, and accrued expenses are reported on the condensed consolidated balance sheets at carrying value, which approximate fair value due to the short-term maturities of these instruments. The carrying value of the Company's short-term notes payable and notes payable due to related parties approximate the instruments' fair values due to the short-term maturities of these debt instruments. Similarly, the carrying value of the notes payable of variable interest entities approximates its fair value due to the associated effective interest rate of the debt instrument. The following table details the fair value measurements within the fair value hierarchy of the Company’s financial instruments (in thousands): September 30, 2025 Total Level 1 Level 2 Level 3 Assets: Cash Equivalents Mutual funds $ 900 $ 900 $ — $ — Money market funds 123 123 — — Trading debt securities 981 — — 981 Total assets $ 2,004 $ 1,023 $ — $ 981 Liabilities: Current portion of royalties payable due to related parties $ 574 $ — $ — $ 574 Royalties payable due to related parties 10,743 — — 10,743 Total liabilities $ 11,317 $ — $ — $ 11,317 December 31, 2024 Total Level 1 Level 2 Level 3 Assets: Cash Equivalents Mutual funds $ 2,803 $ 2,803 $ — $ — Money market funds 12 12 — — Total assets $ 2,815 $ 2,815 $ — $ — Liabilities: Current portion of royalties payable due to related parties $ 145 $ — $ — $ 145 Royalties payable due to related parties 9,068 — — 9,068 Total liabilities $ 9,213 $ — $ — $ 9,213 The fair value measurement of royalties payable due to related parties includes significant unobservable inputs that are not supported by any market data. Royalties payable due to related parties equals the present value of estimated future royalty payments. The Company applies an internally developed, revenue adjusted discount rate (“RADR”) to discount back the forecasted royalty payments. The RADR is based on the Company’s weighted average cost of capital (“WACC”) adjusted for the product revenue’s risk profile. The risk-free rate used to determine the cost of equity for the RADR is adjusted to be commensurate with the term of the royalty agreements. Furthermore, the Beta and Risk Premium used to determine the cost of equity are also adjusted to reflect the product revenue's volatility. All other inputs for the RADR and the Company’s WACC are the same. The fair value of trading debt securities includes assumptions that are both significant and unobservable. The fair value of the trading debt securities is determined using a probability weighted expected return model (“PWER model”) that values the trading debt securities based on the discounted cash flows of two potential settlement outcomes: (i) the trading debt securities will be converted into and settled in shares of common stock of QHSLab, Inc. and (ii) the trading debt securities’ principal and accrued interest will be paid in cash. Aside from the probability of the two potential settlement outcomes, the fair value measurement incorporates several significant unobservable inputs, including the recovery rate, simulated conversion price, credit-risk adjusted discount rate, expected equity volatility, and expected term for conversion and for payment. The following tables summarize the significant unobservable inputs used in the fair value measurement of Level 3 instruments: September 30, 2025 Instrument Valuation Technique Unobservable Input Input Range Royalties payable due to related parties Discounted future cash flows Revenue adjusted discount rate 19.5 % Trading debt securities Probability weighted expected return Recovery rate 60.0 % Simulated conversion price $ 0.67 Credit risk-adjusted discount rate 11.5 % Expected equity volatility 90 % Probability of conversion 25.8 % Probability of payment 74.2 % Expected term for conversion (years) 1.8 Expected term for payment (years) 5.0 December 31, 2024 Instrument Valuation Technique Unobservable Input Input Range Royalties payable due to related parties Discounted future cash flows Revenue adjusted discount rate 22.5 % 10 Table of Contents The table below summarizes the change in fair value of royalties payable due to related parties and trading debt securities for the three and nine months ended September 30, 2025 (in thousands): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Royalties Payable due to Related Parties Trading Debt Securities Balance at January 1, 2025 $ 9,213 $ — Change in fair value 1,163 — Balance at March 31, 2025 10,376 — Purchased — 864 Change in fair value 1,667 10 Balance at June 30, 2025 12,043 874 Change in fair value ( 726 ) 107 Balance at September 30, 2025 $ 11,317 $ 981 The table below summarizes the change in fair value of royalties payable due to related parties and trading debt securities for the three and nine months ended September 30, 2024 (in thousands): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Royalties Payable due to Related Parties Trading Debt Securities Balance at January 1, 2024 $ 6,974 $ — Change in fair value 86 — Balance at March 31, 2024 7,060 — Change in fair value 1,504 — Balance at June 30, 2024 8,564 — Change in fair value 1,233 — Balance at September 30, 2024 $ 9,797 $ — Increases or decreases in the fair value of royalties payable due to related parties or trading debt securities can result from updates to assumptions. Judgment is used in determining these assumptions as of the initial valuation date and at each subsequent reporting period. Changes or updates to assumptions could have a material impact on the reported fair value, the change in fair value, and the results of operations in any given period. Accounts Receivable and Allowances for Credit Losses Accounts receivable consists of trade receivables recorded at invoiced amounts. Accounts receivable is presented net of any discounts and allowance for credit losses, is unsecured and does not bear interest. Accounts receivable is evaluated for collectability based on historical credit loss experience, adjusted for asset-specific risk characteristics, current economic conditions, and reasonable forecasts, including the probability of future collection and estimated loss rates based on aging schedules. Accounts receivable is assessed for collectability based on three portfolio segments: Hospitals - United States, Hospitals - Europe, and Distributors. The determination of portfolio segments is based on the customers’ industry and geographical location. Changes in the estimated collectability of accounts receivable are recorded in the condensed consolidated statements of operations in the period in which the estimate is revised. Accounts receivable are written off as uncollectible after all means of collection are exhausted. Any subsequent recoveries are credited to the allowance for credit losses. As of September 30, 2025 and December 31, 2024 , the allowance for credit losses related to accounts receivable was immaterial. Inventories Inventories are stated at the lower of cost (determined by the first -in, first -out method) or net realizable value. Cost includes materials, labor, and manufacturing overhead related to the purchase and production of inventories. The Company reduces the carrying value of inventories for those items that are potentially in excess, obsolete or slow-moving based on changes in customer demand, technological developments or other economic factors. Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation. Property and equipment are depreciated on a straight-line basis over their estimated useful lives as follows: Machinery and equipment 2 - 5 years Computer hardware and software 1 - 5 years LockeT animation video 3 years VIVO DEMO/Clinical Systems 1-5 years 11 Table of Contents The Company periodically reviews the residual values and estimated useful lives of each class of its property and equipment for ongoing reasonableness, considering the long-term views of their intended use and the level of planned improvements to maintain and enhance those assets. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from their respective account balances, and any resulting gain or loss is recognized in the Company’s condensed consolidated statements of operations. The cost of repairs and maintenance is expensed as incurred, whereas significant renewals and betterments are capitalized. Impairment of Long-lived Assets In accordance with ASC Topic 360, Impairment and Disposals of Long-lived Assets , the Company periodically reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that such assets might be impaired and the carrying value of the long-lived assets may not be recoverable. If events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and the expected undiscounted future cash flows attributable to the asset are less than the carrying amount of the asset, an impairment loss equal to the excess of the assets carrying value over its fair value is recorded in the Company’s condensed consolidated statements of operations at that date. The Company has analyzed a variety of factors impacting its business to determine if a circumstance could trigger an impairment loss, and, at this time and based on the information presently known, does not believe it is more likely than not that an impairment loss has been incurred. Royalties Payable Due to Related Parties The Company is obligated to pay royalties related to the sales of LockeT and AMIGO System under various royalty agreements executed by Old Catheter. The Company recognizes a liability for royalty fees incurred and payable based on actual sales of products under current portion of royalties payable due to related parties in the condensed consolidated balance sheets. The Company recognizes a liability for future, estimated royalty payments at fair value under current portion of royalties payable due to related parties in the condensed consolidated balance sheets if it is payable within the next 12 months and under royalties payable due to related parties in the condensed consolidated balance sheets if it is payable 12 months after the balance sheet date. The royalties payable due to related parties is remeasured at each reporting period. Changes in fair value of royalties payable due to related parties are recorded on the condensed consolidated statements of operations in the period in which they occur. See Note 8, Royalties Payable for additional information. 12 Table of Contents Asset Acquisitions and In-process Research and Development The Company accounts for acquisitions of assets or a group of assets that do not meet the definition of a business as asset acquisitions based on the cost to acquire the asset or group of assets, which includes certain transaction costs. In an asset acquisition, the cost to acquire is allocated to the identifiable assets acquired and liabilities assumed based on their relative fair values as of the acquisition date. No goodwill is recorded in an asset acquisition. Assets that are acquired in an asset acquisition for use in research and development activities that have an alternative future use are capitalized as in-process research and development (“IPR&D”) in the condensed consolidated balance sheets. Acquired IPR&D that has no alternative future use as of the acquisition date is recognized as acquired-in-process research and development expense in the condensed consolidated statements of operations as of the acquisition date. Contingent consideration in asset acquisitions that is not accounted for as a derivative is measured and recognized when payment becomes probable and reasonably estimable. Subsequent changes in the accrued amount of contingent consideration are measured and recognized at the end of each reporting period and upon settlement as an adjustment to the cost basis of the acquired asset or group of assets, or, if related to IPR&D with no alternative future use, recognized as expense. Contingent consideration that is in the form of a sales or usage-based royalty payment is recognized as an expense as incurred. Debt Securities Debt securities consist of the QHSLab Notes, which were received as partial consideration for the PIPE Units and Series B Convertible Preferred Stock issued by the Company under the May 2025 PIPE Financing (see Note 11, Equity Offerings for further details). One QHSLab Note was originally issued on August 10, 2021 with a principal amount of $ 806 thousand, a maturity date of August 10, 2022, an interest rate of 5 % per annum, a default interest rate of 18 %, and a conversion rate of 20 cents per share of common stock of QHSLab, Inc. (“QHSLab”) ( "2021 Note"). The second QHSLab Note was originally issued on July 19, 2022 with a principal amount of $ 440,000 , a maturity date of July 19, 2023, interest rate of 5 % per annum, a default interest rate of 18 %, and conversion rate of 20 cents per share of common stock of QHSLab ( “2022 Note”). Both QHSLab Notes were in default at the date of transfer. Under ASC Topic 320, Investments: Debt Securities, debt securities are classified into one of three categories upon acquisition: held-to-maturity, available-for-sale or trading. Debt securities that the Company has both the positive intent and ability to hold to maturity are classified as held to maturity. Debt securities that are bought and held principally for the purpose of selling them in the near term are classified as trading. All other debt securities are classified as available-for-sale. As the Company acquired the QHSLab Notes with the intent of selling them, the QHSLab Notes are classified as trading debt securities. Trading debt securities are initially and subsequently measured at fair value in the condensed consolidated balance sheets, with unrealized holding gains and losses included in change in fair value of trading debt securities in the condensed consolidated statements of operations. The QHSLab Notes were valued at $ 864 thousand at the close of the May 2025 PIPE Financing. The Company recorded unrealized gains of $ 107 thousand and $ 117 thousand for the QHSLab Notes for the three and nine months ended September 30, 2025 , respectively. The QHSLab Notes were valued at $ 981 thousand as of September 30, 2025 The QHSLab Notes continue to be in default, such that there can be no assurance that they will be paid in full or at all. Variable Interest Entity A variable interest entity ("VIE") is a legal entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains or losses of the entity. The primary beneficiary has both the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company evaluates its ownership, contractual relationships and other interests in entities to determine the nature and extent of the interests, whether such interests are variable interests and whether the entities are VIEs in accordance with ASC Topic 810, Consolidation ("ASC 810" ). These evaluations can be complex and judgmental, involving the use of estimates and assumptions based on available information among other factors. Based on these evaluations, if the Company determines it is the primary beneficiary of a VIE, the Company consolidates the accounts of that VIE. The equity owned by other stockholders is presented, as applicable, as non-controlling interests in the accompanying condensed consolidated balance sheets, statements of operations, and statements of stockholders’ equity. If a reconsideration event occurs under ASC 810, the Company performs an assessment to determine whether the entity continues to be a VIE, whether the Company still contains a variable interest in the VIE, and whether the Company continues to be or has become the primary beneficiary of the VIE. Cardionomix Cardionomix is a legal entity that was solely created to hold the assets of and to clinically develop and commercialize the CPNS System. The Company holds 82 % of the voting, common stock, while the Company’s Chief Executive Officer and his affiliates hold 12 %, and other third parties hold the remaining 6 %. The Company determined that its controlling equity interest represents a variable interest in Cardionomix, which meets the definition of a VIE as it does not have sufficient equity at risk to finance its activities without additional subordinated financial support. Furthermore, the Company has determined that it is the primary beneficiary of the VIE as it has the power to direct the activities that most significantly impact the VIE’s economic performance through its controlling equity interest. The Company therefore consolidates the results of operations, assets, and liabilities of Cardionomix. The Company did not transfer any assets in exchange for its controlling equity interest in Cardionomix, which did not have any assets or liabilities at formation. Accordingly, the Company did not record any gain or loss upon initial consolidation. As of September 30, 2025 , Cardionomix only had a note payable with a carrying value of $ 1.3 million that was issued in May 2025 in connection with the asset acquisition. This note payable is presented under notes payable of variable interest entities, net of discount in the condensed consolidated balance sheets. Cardionomix does not hold any other material assets or liabilities as of September 30, 2025 . Creditors of Cardionomix have no recourse to the Company’s general credit and their claims are limited solely to the assets of Cardionomix. The Company provided financial support to Cardionomix, including the payment of direct transactions costs totaling $ 0.3 million incurred in connection with the asset acquisition. Unless Cardionomix can obtain its own financing, the Company currently intends, to the extent it is able and otherwise subject to changes in circumstances, to provide financial support to Cardionomix until such time as the CPNS System has been clinically developed and commercialization achieved. Unless commercialization for the CPNS System is achieved, the Company expects to incur additional losses related to Cardionomix. The minority equity interest holders are presented as non-controlling interests in the accompanying condensed consolidated balance sheets, statements of operations, and statements of stockholders’ equity. KardioNav KardioNav is a legal entity that was solely created to hold the assets of and to clinically develop and commercialize certain intellectual property related to new cardiac technology. The Company holds 57 % of the voting common stock, while the Company’s Chief Executive Officer and his affiliates hold 10 %, and other third parties hold the remaining 33 %. The Company determined that its controlling equity interest represents a variable interest in KardioNav, which meets the definition of a VIE as it does not have sufficient equity at risk to finance its activities without additional subordinated financial support. Furthermore, the Company has determined that it is the primary beneficiary of the VIE as it has the power to direct the activities that most significantly impact the VIE’s economic performance through its controlling equity interest. The Company therefore consolidates the results of operations, assets, and liabilities of KardioNav. The Company assigned certain intellectual property related to the VIVO System to KardioNav, which was accounted for as a common control transaction under ASC 810 and carried at the Company's carrying value at inception. Furthermore, the fair value of the intellectual property assigned by Chelak to KardioNav was deemed to be de minimis as the intellectual property solely consists of patents and related know-how at the conceptual stage. Therefore, the Company recognized no gain or loss upon initial consolidation. Creditors of KardioNav have no recourse to the Company’s general credit and their claims are limited solely to the assets of KardioNav. Unless KardioNav obtains its own financing, the Company currently intends, to the extent it is able and subject to changes in circumstances, to provide financial support to KardioNav, until such time as KardioNav may have successfully completed research and development of its cardiac electrophysiology mapping technologies. As of September 30, 2025 , KardioNav's only assets or liabilities relate to prepaid expenses and other current assets of $ 138 thousand, accrued expenses of $ 16 thousand, and notes payable due to related parties with a carrying value of $ 303 thousand. The notes payable due to related parties are presented under short-term notes payable of variable interest entities due to related parties in the condensed consolidated balance sheets. KardioNav does not hold any other material assets or liabilities. The minority equity interest holders are presented as non-controlling interests in the accompanying condensed consolidated balance sheets, statements of operations, and statements of stockholders’ equity. Distinguishing Liabilities from Equity The Company evaluates equity or liability classification for freestanding financial instruments, including convertible preferred stock, warrants, and options, pursuant to the guidance under ASC Topic 480, Distinguishing Liabilities from Equity (“ASC 480” ). The Company classifies as liabilities all freestanding financial instruments that are (i) mandatorily redeemable, (ii) represent an obligation to repurchase the Company’s equity shares by transferring assets, or (iii) represent an unconditional obligation (or conditional obligation if the financial instrument is not an outstanding share) to issue a variable number of shares predominantly based on a fixed monetary amount, variations in something other than the fair value of the Company’s equity shares, or variations inversely related to changes in fair value of the Company’s equity shares. If a freestanding financial instrument does not represent an outstanding equity share and does not meet liability classification under ASC 480, the Company then assesses whether the freestanding financial instrument is indexed to its own stock and meets equity classification pursuant to ASC 815 - 40, Derivatives and Hedging (“ASC 815” ). The Company further assesses whether the freestanding financial instruments should be classified as temporary equity. Freestanding financial instruments that are redeemable for cash or other assets at a fixed or determinable date, at the option of the holder, or upon the occurrence of an event are classified in temporary equity in accordance with ASC 480. Otherwise, the freestanding financial instruments are classified in permanent equity. See Note 11, Equity Offerings and Note 12, Preferred Stock for additional information on the freestanding financial instruments assessed under ASC 480 and ASC 815 - 40 for equity or liability classification. Revenue Recognition In accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606” ), the Company accounts for contracts with customers when there is a legally enforceable contract, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. Revenue is measured as the amount of consideration expected to be received in exchange for transferring promised goods or services. The amount of consideration to be received and revenue recognized may vary due to discounts. A performance obligation is a promise in a contract to transfer a distinct good or service. If there are multiple performance obligations in the customer contract, the Company allocates the transaction price in the contract to each performance obligation based on the relative standalone selling price. The Company does not adjust revenue for the effects of a significant financing component for contracts if the period between the transfer of control and corresponding payment is expected to be one year or less. Revenue is recognized when performance obligations in the customer contract are satisfied. This generally occurs when the customer obtains control of a promised good at a point in time or when a customer receives a promised service over time. Pursuant to ASC 606, the Company applies the following five steps to each customer contract: 13 Table of Contents Step 1: Identify the contract with the customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when the Company satisfies a performance obligation The Company has elected as a practical expedient to expense as incurred any costs incurred to obtain a contract as the related amortization period would be one year or less. VIVO System The VIVO System offers 3D cardiac mapping to help localize the sites of origin of idiopathic ventricular arrhythmias in patients with structurally normal hearts prior to electrophysiology studies. Customers are provided with VIVO Positioning Patch Sets, which are custom patches, that are used in conjunction with the VIVO System. The VIVO Positioning Patch Sets are integral to the functionality of the VIVO System. The VIVO System, including the VIVO Positioning Patch Sets, represents the Company’s primary performance obligation. The Company recognizes revenue when physical possession and control of the VIVO System is transferred to the customer upon delivery. The Company also offers customers software upgrades for the VIVO System, which may be purchased and paid in advance at contract inception. Software upgrades represent stand-ready services, whereby the Company promises to provide software upgrades to the customer when and as upgrades are available. Software upgrade services may be offered for initial contract terms of one to multiple years. Customers have the option to renew software upgrades services at the end of each term. The software upgrade services represent the Company's second performance obligation, which is recognized evenly over time over the contract term. The Company invoices the customer for the VIVO System and related software upgrades after physical possession and control of the VIVO System has been transferred to the customer. Subsequent renewals for software upgrades are invoiced at inception of the renewed term. The timing of payment for the corresponding invoices depends on the credit terms identified in each customer contract. There were no software upgrade services revenues during the nine months ended September 30, 2025 and 2024 . LockeT LockeT was launched by the Company in February 2023 and is a suture retention device indicated for wound healing by distributing suture tension over a larger area in the patient in conjunction with a figure of eight suture closure. LockeT is intended to temporarily secure sutures and aid clinicians in locating and removing sutures efficiently. The LockeT device represents a performance obligation in the customer contract. The Company recognizes revenue when it transfers control of the LockeT device to the customer, which happens when the Company delivers the product to the customer. Disaggregation of Revenue The following table summarizes disaggregated product sales by geographic area (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2025 2024 2025 2024 Product sales US $ 172 $ 62 $ 480 $ 129 Europe 54 34 101 142 Total product sales $ 226 $ 96 $ 581 $ 271 14 Table of Contents Shipping and Handling Costs Shipping and handling costs charged to customers are included in net product sales, while all other shipping and handling costs are included in selling, general and administrative expenses in the accompanying unaudited condensed consolidated statements of operations. Advertising and Marketing Advertising costs are expensed as incurred and included in selling, general and administrative expenses in the unaudited condensed consolidated statements of operations. Advertising costs were $ 15 t housand and $ 148 thousand during the three and nine months ended September 30, 2025 , respectively, and $ 31 thousand and $ 127 thousand during the three and nine months ended September 30, 2024 , respectively. Patents The Company expenses patent costs, including related legal costs, as incurred and records such costs as selling, general and administrative expenses in the accompanying unaudited condensed consolidated statements of operations. Research and Development Major components of research and development costs include consulting, research grants, supplies and clinical trial expenses. Research and development expenses are charged to operations in the period incurred. Stock-based Compensation The Company recognizes stock-based compensation expense associated with stock options, restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) issued to employees, members of the Company’s board of directors and consultants in accordance with ASC Topic 718, Compensation – Stock Compensation (“ASC 718” ). The Company evaluates whether stock-based awards should be classified and accounted for as liability or equity awards on the date of grant. Furthermore, the Company measures all stock-based awards granted based on their fair value on the date of grant. Stock options are measured at fair value using the Black-Scholes option pricing valuation model (the “Black-Scholes model”), which incorporates various assumptions, including expected term, volatility and risk-free interest rate. The expected term of the options is the estimated period of time until exercise and was determined using the SEC’s safe harbor rules, using an average of vesting and contractual terms, as the Company did not have sufficient historical experience of similar awards. Expected stock price volatility is based on historical volatilities of certain “guideline” companies, as the Company does not have sufficient historical stock price data. The risk-free interest rate is based on the implied yield available on U.S. Treasury zero -coupon issues with an equivalent term. Stock-based compensation expense for all stock-based awards is recognized over the requisite service period, which is generally the vesting period of the respective stock award. Stock-based compensation expense for stock-based awards with a performance condition is recognized when the achievement of such performance condition is determined to be probable. If the outcome of such performance condition is not probable or is not met, no stock-based compensation expense is recognized, and any previously recognized compensation expense is reversed. Forfeitures are recognized as a reduction of stock-based compensation expense as they occur. Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences reverse. Any resulting net deferred tax assets are evaluated for recoverability and, accordingly, a valuation allowance is provided when it is more likely than not that all or some portion of the deferred tax asset will not be realized. The Company accounts for uncertainty in income taxes using a two -step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether it is more likely than not that the position will be sustained on an audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. An uncertain tax position is considered effectively settled on completion of an examination by a taxing authority if certain other conditions are satisfied. Should the Company incur interest and penalties relating to tax uncertainties, such amounts would be classified as a component of interest expense and other expense, respectively. On July 4, 2025, the One Big Beautiful Bill Act, was signed into law. The legislation did not have a material impact on our income tax expense for the fiscal quarter ended September 30, 2025, and we do not expect it to materially change our effective income tax rate for 2025. 15 Table of Contents Basic and Diluted Net Loss per Share Earnings per share attributable to Catheter Precision, Inc. common stockholders is calculated using the two -class method, which is an earnings allocation formula that determines earnings per share for the holders of the Company’s common shares and participating securities. The Company’s Series A Convertible Preferred Stock, of which no shares were outstanding as of September 30, 2025 , Series X Convertible Preferred Stock, Series B Convertible Preferred Stock, and outstanding warrants are participating securities as they contain participating rights in distributions made to common stockholders. Since the participating securities do not include a contractual obligation to share in the losses of the Company, they are not included in the calculation of net loss per share in the periods that have a net loss. In addition, common stock equivalent shares (whether or not participating) are excluded from the computation of diluted loss per share in periods in which they have an anti-dilutive effect on net loss per common share. Diluted net loss per share is computed using the more dilutive of (a) the two -class method or (b) the if-converted method and treasury stock method, as applicable. In periods in which the Company reports a net loss attributable to Catheter Precision, Inc. common stockholders, diluted net loss per share attributable to Catheter Precision, Inc. common stockholders is the same as basic net loss per share attributable to Catheter Precision, Inc. common stockholders since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. Diluted net loss per share is equivalent to basic net loss per share for the periods presented herein because common stock equivalent shares from outstanding warrants, stock options, non-vested restricted stock awards, Series X Convertible Preferred Stock and Series B Convertible Preferred Stock were anti-dilutive (see Note 10, Net Loss per Share). Net loss attributable to Catheter Precision, Inc. common stockholders consists of net income or loss attributable to Catheter Precision, Inc., as adjusted for actual and deemed dividends declared, if applicable. Recently Announced Accounting Pronouncements In December 2023, the FASB issued ASU 2023 - 09, Income Taxes (Topic 740 ): Improvements to Income Tax Disclosures , which requires public entities to disclose consistent categories and greater disaggregation of information in the rate reconciliation and for income taxes paid. It also includes certain other amendments to improve the effectiveness of income tax disclosures. The guidance is effective for financial statements issued for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is required to adopt this standard prospectively in fiscal year 2025 for the annual reporting period ending December 31, 2025. The Company does not believe the impact of the new guidance and related codification improvements will have a material impact on its financial position, results of operations and cash flows. In November 2024, the FASB issued ASU 2024 - 03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220 - 40 ): Disaggregation of Income Statement Expenses ("ASU 2024 - 03" ). In January 2025, the FASB issued ASU 2025 - 01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220 - 40 ), Clarifying the Effective Date ("ASU 2025 - 01" ). ASU 2024 - 03 requires the disaggregation of certain costs and expenses in the notes to the financial statements to provide enhanced transparency into the expense captions presented on the face of the income statement. ASU 2024 - 03, as clarified by ASU 2025 - 01, is effective for the Company’s Annual Report on Form 10 -K for the fiscal year ending December 31, 2027 and for interim periods beginning in 2028. The guidance may be applied on a prospective or retrospective basis and early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2024 - 03 on its condensed consolidated financial statements. Note 3. Inventories Inventories consisted of the following (in thousands): September 30, December 31, 2025 2024 Raw materials $ 23 $ 18 Finished goods 11 15 Inventories $ 34 $ 33 There were no charges for inventory obsolescence or allowance recorded for the three and nine months ended September 30, 2025 and 2024 . 16 Table of Contents Note 4. Property and Equipment Property and equipment, net consisted of the following (in thousands): September 30, December 31, 2025 2024 Machinery and equipment $ 36 $ 29 Computer hardware and software 38 29 LockeT animation video 29 29 VIVO DEMO/Clinical Systems 121 101 Property and equipment, gross 224 188 Accumulated depreciation ( 152 ) ( 97 ) Property and equipment, net $ 72 $ 91 Depreciation expense was $ 17 thousand and $ 55 thousand for the three and nine months ended September 30, 2025 , respectively, and $ 19 thousand and $ 45 thousand for the three and nine months ended September 30, 2024 , respectively. Note 5. Intangible Assets The following table summarizes the Company’s intangible assets as of September 30, 2025 (in thousands): Estimated Useful Life Gross Carrying Accumulated Net Carrying ( Years) Amount Amortization Value Developed technology ‐ VIVO 15 $ 8,244 $ ( 1,511 ) $ 6,733 Developed technology ‐ LockeT 14 18,770 ( 3,687 ) 15,083 Customer relationships 6 62 ( 28 ) 34 Trademarks/trade names ‐ VIVO 9 876 ( 268 ) 608 Trademarks/trade names ‐ LockeT 9 409 ( 125 ) 284 $ 28,361 $ ( 5,619 ) $ 22,742 The following table summarizes the Company’s intangible assets as of December 31, 2024 (in thousands): Estimated Useful Life Gross Carrying Accumulated Net Carrying ( Years) Amount Amortization Value Developed technology ‐ VIVO 15 $ 8,244 $ ( 1,099 ) $ 7,145 Developed technology ‐ LockeT 14 18,770 ( 2,681 ) 16,089 Customer relationships 6 62 ( 21 ) 41 Trademarks/trade names ‐ VIVO 9 876 ( 195 ) 681 Trademarks/trade names ‐ LockeT 9 409 ( 91 ) 318 $ 28,361 $ ( 4,087 ) $ 24,274 The estimated future amortization expense for the next five years and thereafter is as follows (in thousands): Future Amortization Years ending December 31, Expense Remainder of 2025 $ 511 2026 2,043 2027 2,043 2028 2,043 2029 2,033 Thereafter 14,069 Total $ 22,742 17 Table of Contents The Company uses the straight-line method to determine amortization expense for its definite lived intangible assets. Amortization expense, included within selling, general and administrative expenses in the condensed consolidated statements of operations, for the Company's intangible assets was $ 0.5 million for the three months ended September 30, 2025 and 2024 and $ 1.5 million for the nine months ended September 30, 2025 and 2024 . Note 6. Accrued Expenses Accrued expenses consisted of the following (in thousands): September 30, December 31, 2025 2024 Legal expenses $ 76 $ 81 Offering costs 1,356 1,356 Compensation and related benefits 95 35 Other accrued expenses 36 76 Accrued expenses $ 1,563 $ 1,548 18 Table of Contents Note 7. Notes Payable Note Payable - Director and Officer Liability Insurance The Company purchased director and officer liability insurance coverage on October 16, 2023 for $ 447 thousand. A down payment of $ 157 thousand was made and the remaining balance of $ 290 thousand was financed over 8 months through a short-term financing arrangement with its insurance carrier. The interest rate on the loan was 8.99 %. Interest expense on this loan was $ 0 thousand and $ 4 thousand for the three and nine months ended September 30, 2024 , respectively. The loan balance was paid off in May 2024, such that there is no remaining balance as of September 30, 2025 , and December 31, 2024 . The Company purchased director and officer liability insurance coverage on September 26, 2024 for $ 293 thousand. A down payment of $ 44 thousand was made and the remaining balance of $ 249 thousand was financed over 10 months through a short-term financing arrangement with its insurance carrier. The interest rate on the loan is 9.99 %. Interest expense on this loan was $ 0 and $ 6 thousand for the three and nine months ended September 30, 2025 , respectively. The loan balance was paid off in July 2025, such that there is no remaining balance as of September 30, 2025 . The loan balance was $ 177 thousand as of December 31, 2024 and is recorded under short-term notes payable in the condensed consolidated balance sheets. Note Payable Issued for the Cardionomic Asset Acquisition In connection with the asset acquisition of the CPNS System previously held by Cardionomic, on May 5, 2025, Cardionomix issued a promissory note with a face amount of $ 1.5 million and stated interest rate of 4 % per annum (the "Note Payable"). No interest or principal is payable until the maturity date of the Note Payable, which is three years following the date of issuance. All outstanding principal plus accrued but unpaid interest becomes immediately due and payable upon voluntary or involuntary bankruptcy filings. The Note Payable may be prepaid by Cardionomix at any time at its own discretion. The Note Payable was initially measured at its present value of $ 1.3 million net of a discount of $ 254 thousand based on an effective interest rate of 10 % per annum. The discount is amortized under the effective interest method over the term of the Note Payable. Interest expense on this note was $ 32 and $ 51 thousand for the three and nine months ended September 30, 2025 , respectively. The Note Payable and related accrued interest totaled $ 1.3 million as of September 30, 2025 , which included a principal balance of $ 1.5 million and accrued interest expense of $ 24 thousand net of unamortized discounts of $ 227 thousand. The Note Payable and related accrued interest was recorded under notes payable of variable interest entities on the condensed consolidated balance sheets. Future maturities for long-term debt as of September 30, 2025 were as follows (in thousands): September 30, 2025 2025 $ — 2026 — 2027 — 2028 1,500 Total $ 1,500 Promissory Notes (Collectively, the “Related Party Notes”) On May 30, 2024, David A. Jenkins loaned $ 500,000 to the Company in exchange for a short-term promissory note. On June 25, 2024, an entity controlled by Mr. Jenkins loaned $ 150,000 to the Company in exchange for a short-term promissory note. On July 1, 2024 and July 18, 2024, the Company entered into two short-term promissory notes with an affiliate of Mr. Jenkins, wherein the affiliate loaned $ 250,000 and $ 100,000 , respectively, to the Company in exchange for the short-term promissory notes. On July 25, 2024, the Company entered into a short-term promissory note with a Trust, of which Mr. Jenkins’ adult daughter is the trustee, wherein the Trust loaned $ 500,000 to the Company in exchange for the short-term promissory note. All of these short-term promissory notes (the “Related Party Notes”) had a maturity date of August 30, 2024 and interest of 8 % per annum. On August 23, 2024, the Company entered into the first amendment of the Related Party Notes, which extended the maturity date to January 31, 2026 and increased the interest rate to 12 % per annum after August 31, 2024. All other terms and conditions remained substantially unchanged. As part of the amendment, the Company paid down all accrued interest to date of $ 21 thousand. The amendment was accounted for as a debt modification in accordance with ASC 470 - 50, Debt Modifications and Extinguishment (“ASC 470 - 50” ). Since the modified terms and conditions were not substantially different from the prior terms and conditions, the Company accounted for the debt modification as a continuation of the original debt instrument. The Company further concluded that the debt modification did not result in any adjustments to the carrying value of the Related Party Notes. The Related Party Notes, including all principal and interest, accelerate and become immediately due and payable upon the occurrence of certain customary events of default, including failure to pay amounts owed when due, material breach of the Company’s representations or warranties (unless waived by the holders of the Related Party Notes or cured within 10 days following notice), certain events involving the discontinuation of the Company’s business and/or certain types of proceedings involving insolvency, bankruptcy, receivership and the like. Interest expense on the Related Party Notes was $ 45 thousand and $ 135 thousand for the three and nine months ended September 30, 2025 , respectively, and $ 33 and $ 36 thousand for the three and nine months ended September 30, 2024 , respectively. The Related Party Notes and related accrued interest totaled $ 1.7 million as of September 30, 2025 , of which $ 196 thousand related to accrued interest. The Related Party Notes and related accrued interest totaled $ 1.6 million as of December 31, 2024 , of which $ 61 thousand related to accrued interest. The Related Party Notes, including accrued interest, are recorded under the current portion of notes payable due to related parties on the condensed consolidated balance sheets. Notes Payable Issued by KardioNav On July 11, 2025, two short-term promissory notes with a face amount of $ 150 thousand each were issued by KardioNav to the Company's Chief Executive Officer and Lifestim, Inc., a company controlled by the Company's Chief Executive Officer. The promissory notes have a maturity date of July 11, 2026, and interest rates of 4.2 % per annum, payable upon maturity (the "Notes Payable"). The Notes Payable, including all principal and interest, accelerate and become immediately due and payable upon the occurrence of certain customary events of default, including failure to pay amounts owed when due, material breach of the Company’s representations or warranties (unless waived by the holders or cured within 10 days following notice), certain events involving the discontinuation of the Company’s business and/or certain types of proceedings involving insolvency, bankruptcy, receivership and the like. Interest expense on this note was $ 3 thousand for the three and nine months ended September 30, 2025 . The Notes Payable and related accrued interest totaled $ 303 thousand as of September 30, 2025 , which included a principal balance of $ 300 thousand and accrued interest of $ 3 thousand. The Notes Payable and related accrued interest are recorded under short-term notes payable of variable interest entities due to related parties on the condensed consolidated balance sheets. Note 8. Royalties Payable LockeT Royalty On January 9, 2023, prior to the consummation of the Merger, Old Catheter entered in an agreement with its Convertible Promissory Noteholders (“Noteholders”), which substantially consisted of amounts due to David A. Jenkins, previously Old Catheter's Chairman of the Board of Directors prior to the Merger, and, currently, the Company’s Executive Chairman of the Board of Directors and Chief Executive Officer, to forgive all accrued interest and future interest expense in exchange for a future royalty right. Under these agreements, the Company is obligated to pay the Noteholders a total royalty equal to 11.82 % of net sales of its LockeT device on a quarterly basis, commencing upon the first commercial sale, which occurred in April 2024, through December 31, 2035. As of September 30, 2025 and December 31, 2024 , the fair value of the royalty payable related to the agreement with the Noteholders was $ 11.3 million and $ 9.2 million, respectively. An additional royalty will be paid to the inventor of the LockeT device as detailed in the Royalty Agreement. In exchange for the assignment and all rights to LockeT and starting with the year ending December 31, 2022, the Company will initially pay a 5 % royalty on net sales up to $ 1 million in royalties, payable annually in arrears. After $ 1 million has been paid, due to the issuance of the patent described below, the Company must pay an additional royalty at a rate of 2 % of net sales, until total cumulative royalties of $ 10 million have been paid. In April 2025, a US patent was granted by the United States Patent and Trademark Office, after which the Company is obligated to pay an additional royalty of 2 % of net sales only after the initial $ 1 million of 5 % royalties has been paid, up to a maximum of $ 10 million in additional royalties. These royalty payments apply to revenues through December 31, 2033 and will terminate at that date regardless of whether the full $ 10 million has been paid. This led to a $ 0.9 million increase in the royalty payable due to related parties as of September 30, 2025 as compared to December 31, 2024. The Company recorded losses for the change in the fair value of the royalty payable of $ 0.7 million and $ 2.1 million for the three and nine months ended September 30, 2025 , respectively, and $ 1.2 million and $ 2.8 million for the three and nine months ended September 30, 2024 , respectively. The Company accrued $ 613 thousand and $ 177 thousand under current portion of royalties payable due to related parties as of September 30, 2025 , and December 31, 2024 , respectively. These amounts represent actual royalty liabilities incurred and accrued by the Company as well as estimated future royalty payments payable within the next 12 months. AMIGO System Royalty During 2006 and 2007, Old Catheter entered into two investment grant agreements with a non-profit foundation for the purpose of funding the initial development of Old Catheter's AMIGO System, receiving a total of $ 1.6 million from the foundation. The agreement calls for the payment of the following sales-based royalties by Old Catheter to the foundation upon successful commercialization of the AMIGO System (in thousands, except for percentages): Until Royalty Payment Royalty Percentage Reaches a Total of 4 % $ 1,589 2 % $ 3,179 1 % In perpetuity 19 Table of Contents The Company is not actively marketing and selling the AMIGO System, such that there was no royalty expense recorded for the three and nine months ended September 30, 2025 and 2024 in relation to the AMIGO System. Note 9. Leases The Company determines if an arrangement contains a lease at contract inception based on its ability to control a physically distinct asset in exchange for consideration. If the arrangement contains a lease, the Company then determines the classification of the lease as either operating or finance. For the nine months ended September 30, 2025 , and the year ended December 31, 2024 , the Company only had operating leases. For operating leases, right-of-use (“ROU”) assets and lease liabilities are initially recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The present values of future lease payments are discounted using the interest rate implicit in the lease if it is readily determinable. As most leases do not provide an implicit rate, the Company applies an incremental borrowing rate based on the information available at commencement date to determine the present value of future lease payments over the lease term. The Company benchmarked itself against other companies with similar credit ratings and of comparable quality to derive an incremental borrowing rate. Lease expense is recognized on a straight-line basis over the lease term in the condensed consolidated statements of operations. The Company elected to utilize the short-term lease exemption to exclude recognition of ROU assets and lease liabilities from the condensed consolidated balance sheet for leases with an initial term of 12 months or less, with payments instead being expensed on a straight-line basis over the lease term. If a lease includes options to extend the lease term, the Company does not assume the option will be exercised in its initial lease term assessment unless there is reasonable certainty that the Company will renew based on an assessment of economic factors present as of the lease commencement date. The Company monitors its plans to renew its material lease each reporting period. The Company enters into contracts that contain both lease and non-lease components. Non-lease components include costs that do not provide a right-to-use a leased asset but instead provide a service such as maintenance costs. The Company has elected to account for the lease and non-lease components together as a single component for all classes of underlying assets. Variable costs associated with the lease, such as maintenance and utilities, are not included in the measurement of ROU assets and liabilities. Variable costs are expensed when the events determining the amount of variable consideration to be paid have occurred. South Carolina Office Lease Agreement On September 27, 2022, Old Catheter entered into a lease agreement for office space located in Fort Mill, South Carolina. The space is used for office and general use. The lease term began on October 1, 2022 for 38 months, and included two months of free rent from the commencement date of the lease. The original lease agreement contains two distinct 36 -month renewal periods, which require 180 days’ notice of the Company's intention to exercise. In June 202 5, the Company notified the landlord of its intent to exercise its option to extend the lease for an addit ional 36 -month period through the end of December 1, 2028. Accordingly, the Company remeasured the lease liability on the basis of the revised lease payments and lease term, such that the first extension option of 36 months has been included in operating right-of-use-assets and operating lease liabilities in the condensed consolidated balance sheet as of September 30, 2025 . As of September 30, 2025 , the Company does not intend to exercise the second extension option and the second option is therefore excluded from operating right-of-use assets and operating lease liabilities in the condensed consolidated balance sheet as of September 30, 2025 . New Jersey Office Lease Agreement On December 7, 2022, Old Catheter entered into a lease agreement for office space located in Augusta, New Jersey. The space is used for office and general use. The lease term began on January 1, 2023 for 24 months. The lease contained one 24 -month renewal period, which required 9 months’ notice of the Company’s intent to exercise. In March 2024, the Company notified the landlord of its intent to extend the lease for a 12 -month period. In April 2024, a lease extension agreement was entered into extending the lease through December 31, 2025. On July 8 2025, the Company entered into a second lease extension agreement to extend the lease for an additional 24 -month period through the end of December 31, 2027. Accordingly, the Company remeasured the lease liability on the basis of the revised lease payments and lease term, such that the extension option of 24 months has been included in operating right-of-use-assets and operating lease liabilities in the condensed consolidated balance sheet as of September 30, 2025 . Park City Office Lease Agreement On March 19, 2023, the Company entered into a lease agreement for office space located in Park City, Utah. The space is used for office and general use. The lease term began on May 1, 2023 for 36 months. The lease contains one 36 -month renewal period, which requires 180 days’ notice of the Company's intention to exercise. As of September 30, 2025 , the Company does not intend to exercise the extension option and the option is therefore excluded from operating right-of-use assets and operating lease liabilities in the condensed consolidated balance sheet as of September 30, 2025 . 20 Table of Contents The following tables present supplemental condensed consolidated balance sheet information related to operating leases for the three and nine months ended September 30, 2025 and 2024 (in thousands): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Operating lease expense $ 27 $ 28 $ 76 $ 80 Cash paid for leases $ 25 $ 25 $ 78 $ 78 September 30, December 31, 2025 2024 Weighted average remaining lease term (in years) - operating leases 2.80 1.12 Weighted average discount rate - operating leases 9.49 % 8.58 % Future minimum lease payments for all lease obligations for the following five fiscal years and thereafter are as follows (in thousands): Years ending December 31: Operating Leases Remainder of 2025 $ 25 2026 76 2027 64 2028 48 Total minimum lease payments 213 Less effects of discounting ( 28 ) Present value of future minimum lease payments $ 185 Operating lease right-of-use assets and lease liabilities were recorded in the condensed consolidated balance sheets as follows (in thousands): September 30, December 31, 2025 2024 Operating lease right-of-use assets, net $ 184 $ 105 Current portion of operating lease liabilities $ 71 $ 98 Operating lease liabilities 114 13 Total operating lease liabilities $ 185 $ 111 21 Table of Contents Note 10. Net Loss per Share The Company’s outstanding Series X Convertible Preferred Stock, Series B Convertible Preferred Stock, and warrants to purchase common stock have participation rights to any dividends that may be declared in the future, such that they are participating securities. Participating securities have the effect of diluting both basic and diluted earnings per share during periods of income. During periods of loss, no loss is allocated to the participating securities since the holders have no contractual obligation to share in the losses of the Company. All common share and per-share amounts for all periods presented reflect the Company’s 1 -for- 19 reverse stock split effective on August 15, 2025. As a result of the net loss attributable to Catheter Precision, Inc.'s common stockholders for all periods presented herein, the following common stock equivalents were excluded from the computation of diluted net loss per share of common stock for the three and nine months ended September 30, 2025 and 2024 because including them would have been antidilutive: September 30, 2025 2024 Warrants for common stock 1,078,943 634,509 Employee stock options 164,355 5,026 Series B Convertible Preferred Stock 335,213 - Series X Convertible Preferred Stock 66,610 66,610 Restricted stock awards 6,000 - Total common stock equivalents 1,651,121 706,145 The weighted-average number of common shares outstanding as of September 30, 2025 includes 16,550 shares of common stock sold under the ATM Agreement on September 30, 2025 but issued on October 1, 2025. Since these shares of common stock are issuable for no consideration and do not contain any other conditions that must be satisfied by the holder to ultimately receive such shares of common stock, these shares were included in the weighted-average number of common shares as of September 30, 2025 . 22 Table of Contents Note 11. Equity Offerings September 2024 Public Offering On August 30, 2024, the Company entered into an Underwriting Agreement (the “Underwriting Agreement”) with Ladenburg Thalmann & Co. Inc. as representative (“Ladenburg”) of the underwriters named in the Underwriting Agreement (the “Underwriters”). Pursuant to the Underwriting Agreement, the Company completed a public offering of its securities on September 3, 2024 ( the “September 2024 Public Offering”) and sold an aggregate of (i) 42,415 Common Stock Units and (ii) 145,943 Pre-Funded Warrant Units at a public offering price of $ 19.00 per Common Stock Unit and $ 18.9981 per Pre-Funded Warrant Unit. The Company collected gross proceeds of approximately $ 3.6 million before deducting underwriting discounts, commissions, and offering expenses payable by the Company of $ 1 million, resulting in net proceeds of $ 2.6 million. Each Common Stock Unit consisted of (i) one share of the Company's common stock, (ii) a Series H Warrant to purchase one share of common stock at an exercise price of $ 19.00 per share that expired six months from the date of issuance, (iii) a Series I Warrant to purchase one share of common stock at an exercise price of $ 19.00 per share that expires eighteen months from the date of issuance, and (iv) a Series J Warrant to purchase one share of common stock at an exercise price of $ 19.00 per share that expires five years from the date of issuance. Each Pre-Funded Warrant Unit consisted of (i) one Pre-Funded Warrant to purchase one share of common stock at an exercise price of $ 0.0019 per share with no expiration date, (ii) one Series H Warrant, (iii) one Series I Warrant (iv) and one Series J Warrant. Pursuant to the Underwriting Agreement, the Company granted Ladenburg a 45 -day Overallotment Option to purchase up to (i) 24,634 additional shares of common stock, (ii) 24,634 additional Series H Warrants, (iii) 24,634 additional Series I Warrants, and/or (iv) 24,634 additional Series J Warrants, solely to cover over-allotments. On August 30, 2024, the Underwriters partially exercised the Overallotment Option to purchase an additional 24,138 shares of common stock, 24,138 Series H Warrants, 24,138 Series I Warrants, and 24,138 Series J Warrants, or 24,138 C ommon Stock Units. The Common Stock Units issued through the exercise of the Overallotment Option are included in the 42,415 C ommon Stock Units noted abo ve. The Overallotment Option expired on October 14, 2024. Furthermore, at the closing date, the Company agreed to deliver to Ladenburg warrants to purchase an aggregate number of shares of common stock equal to 6 % of the shares of common stock (i) issued in connection with the September 2024 Public Offering and (ii) issuable upon the exercise of the Pre-Funded Warrants. Therefore, the Company issued 11,302 warrants to Ladenburg and its designees (the “Representative Warrants”). The Representative Warrants are part of the underwriter costs and commissions incurred in connection with the September 2024 Public Offering. The Representative Warrants may be exercised to purchase one share of common stock at an exercise price of $ 29.45 per share and expire five years from the date of issuance. Each Series H Warrant, Series I Warrant, Series J Warrant (collectively, the “Series Warrants”), and Pre-Funded Warrant was immediately exercisable. The exercise price of the outstanding Series Warrants and Pre-Funded Warrants is subject to appropriate adjustment in the event of recapitalization events, stock dividends, stock splits, stock combinations, reclassifications, reorganizations or similar events affecting the Company’s common stock. Subject to limited exceptions, a holder of the Series Warrants will not have the right to exercise any portion of its Series Warrants if the holder (together with such holder’s affiliates) would beneficially own a number of shares of common stock in excess of 4.99 %, or in the case of certain holders, 9.99 % of the shares of common stock then outstanding (the “Beneficial Ownership Limitation”). Similarly, a holder of the Pre-Funded Warrants has a Beneficial Ownership Limitation of 9.99 %. At the holder’s option, the holder of the Series Warrants may increase the beneficial ownership limitation to 19.99 % of the shares of common stock then outstanding, with any such increase becoming effective upon 61 days’ prior notice to the Company. The Representative Warrants became exercisable six months after the effective date of the Registration Statement filed by the Company on August 29, 2024. The Representative Warrants further have a Beneficial Ownership Limitation of 4.99 %, which may be increased to 9.99 % of the shares of common stock then outstanding at the option of Ladenburg. Any increase in the Beneficial Ownership Limitation will become effective upon 61 days’ prior notice to the Company. The Company assessed the Series Warrants, Pre-Funded Warrants, and Representative Warrants issued in connection with the September 2024 Public Offering (collectively, the “September 2024 Warrants”) and determined that they do not require liability classification pursuant to ASC 480. Furthermore, the September 2024 Warrants do not have any net cash settlement provisions that would preclude equity classification under ASC 815 - 40. Accordingly, the September 2024 Warrants were recorded to additional paid-in capital in the condensed consolidated balance sheets. All 145,943 Pre-Funded Warrants issued in the September 2024 Public Offering were exercised during 2024. 23 Table of Contents 2024 Warrant Inducement Offer On October 25, 2024, the Company executed the 2024 Warrant Inducement Offer with certain holders of the Company’s existing warrants (Series E, Series F, Series G, Series H and Series I Warrants, collectively the “2024 Existing Warrants”). Pursuant to the terms of the 2024 Warrant Inducement Offer, the Company agreed to lower the exercise price per share of common stock for all holders of the 2024 Existing Warrants, including those that did not participate in the 2024 Warrant Inducement Offer. The 2024 Existing Warrants had exercise prices ranging from $ 19.00 to $ 760.00 per share of common stock. Following the closing of the 2024 Warrant Inducement Offer, the Holders immediately exercised an aggregate of (i) 1,745 Series E Warrants, (ii) 26,311 Series F Warrants, (iii) 26,311 Series G Warrants, (iv) 104,737 Series H Warrants, and (v) 122,368 Series I Warrants to purchase 281,470 shares of common stock at a reduced exercise price of $ 13.30 per share. The Company received aggregate gross proceeds of $ 3.7 million in cash, prior to deducting placement agent fees and offering expense of $ 0.4 million. In consideration for the immediate exercise of the 2024 Existing Warrants for cash, the Company issued unregistered new Series K common stock purchase warrants (“Series K Warrants”) to purchase up to 562,945 shares of common stock. The Series K Warrants have an exercise price of $ 13.30 per share of common stock, were not exercisable until stockholders approval was obtained (“Stockholder Approval”), and have a term of 5.5 years following Stockholder Approval. In addition, the exercise price of the Series K Warrants is subject to appropriate adjustment in the event of recapitalization events, stock dividends, stock splits, stock combinations, reclassifications, reorganizations or similar events affecting the Company’s common stock. Stockholder Approval was obtained on January 13, 2025. In connection with the closing, the Company issued Placement Agent Warrants to the Placement Agent to purchase up to 16,888 shares of common stock on the same terms as the Series K Warrants, except that the exercise price is $ 20.62 per share and the warrants are exercisable six months after the date of issuance. As a result of the 2024 Warrant Inducement Offer, the Company recorded a deemed dividend for the modification of the 2024 Existing Warrants and issuance of the Series K Warrants of $ 5.2 million for the year ended December 31, 2024. Furthermore, the Company assessed the Series K Warrants and Placement Agent Warrants and determined that they do not require liability classification pursuant to ASC 480. The Series K Warrants and Placement Agent Warrants do not have any net cash settlement provisions that would preclude equity classification under ASC 815 - 40. Accordingly, the Series K Warrants and Placement Agent Warrants were recorded to additional paid-in capital in the condensed consolidated balance sheets. Pursuant to the terms of the 2024 Warrant Inducement Offer, in the event that the exercise of the 2024 Existing Warrants would cause a holder to exceed the beneficial ownership limitations included therein, the Company would issue the number of shares of common stock that would not cause a holder to exceed such beneficial ownership limitations and hold the remaining balance of shares of common stock in abeyance (the "Abeyance Shares"). The Abeyance Shares were evidenced through the holder’s existing warrants, which are deemed to be prepaid. The Abeyance Shares were held by the Company until the holder sent notice that the remaining balance of shares of common stock could be issued without surpassing the beneficial ownership limitations. During the nine months ended September 30, 2025 , the Company released and issued the remaining balance of 162,947 Abeyance Shares. Accordingly, the Company held no shares of common stock in abeyance as of September 30, 2025 . 24 Table of Contents May 2025 PIPE Financing On May 12, 2025, the Company entered into a Securities Purchase Agreement (“Securities Purchase Agreement”) for a private placement with three institutional investors ( “May 2025 PIPE Financing”). Pursuant to the Securities Purchase Agreement, the Company sold an aggregate of (i) 1,500 PIPE Units and (ii) 1,500 additional shares of a new series of the Company’s preferred stock, designated Series B Convertible Preferred Stock, par value $ 0.0001 per share. Each PIPE Unit consisted of (i) one share of Series B Convertible Preferred Stock and (ii) Series L common stock purchase warrants ("Series L Warrants") to purchase approximately 150 shares of common stock at an exercise price of $ 9.50 per share. As consideration for the PIPE Units and Series B Convertible Preferred Stock, the Company collected gross proceeds of $ 1.5 million in cash and the QHSLab Notes, which had an initial fair value of $ 864 thousand as of the closing date, previously held by one of the investors, before deducting placement agent fees and offering expenses of $ 0.4 million (collectively, the “Placement Agent Fees”). The Series L Warrants were not exercisable until stockholders' approval was obtained ("Stockholder Approval"), and expire 5.5 years thereafter. Each Series L Warrant is exercisable into one share of the Company's common stock and may be exercised on a cashless basis under certain circumstances. The exercise price of the Series L Warrants is subject to appropriate adjustment in the event of recapitalization events, stock dividends, stock splits, stock combinations, reclassifications, reorganizations or similar events affecting the Company's common stock. The Series L Warrants are callable by the Company for $ 0.19 per share if the volume-weighted average price of the Company's common stock for 20 consecutive trading days exceeds $ 28.50 per share and the Series L Warrants have not been exercised. Stockholder approval was obtained on July 25, 2025. In the event of certain transactions resulting in a change in control, at the option of the holder, the Company shall repurchase the Series L Warrants for an amount of cash equal to the Black Scholes Value of the unexercised portion of the Series L Warrants. However, if the change of control is not within the Company’s control, then the holders shall receive the same type of consideration offered to the Company’s common stockholders at the Black Scholes Value of the unexercised portion of the Series L Warrant. If the Company’s common stockholders can choose the type of consideration (i.e., cash, stock, or other assets) to be received, then the Holders shall have the same choice. If the Company’s common stockholders do not receive any consideration, they are deemed to receive common stock of the successor entity. In the event of certain restructuring or disposal events, then upon the subsequent exercise of the Series L Warrants, for each share of common stock that would have been issuable upon exercise immediately prior to the event, the holders shall receive the number of shares of common stock of the successor entity and any alternate consideration given to common stockholders. The exercise price shall be adjusted to apply to such alternate consideration based on the amount of alternate consideration issuable for one share of common stock. If holders of common stock are given any choice as to the securities, cash or property to be received for alternate consideration, then the holder shall be given the same choice. Subject to limited exceptions, the holders of Series L Warrants, will not have the right to exercise any portion of the warrant if the holder (together with such holder’s affiliates) would beneficially own a number of shares of common stock in excess of 4.99 % of the shares of common stock then outstanding (the “Beneficial Ownership Limitation”). At the holder’s option, the holder may increase the Beneficial Ownership Limitation to 9.99 % of the shares of common stock then outstanding, with any such increase becoming effective upon 61 days’ prior notice to the Company. In connection with the May 2025 PIPE Financing, the Company also issued Placement Agent Warrants to purchase an aggregate of 13,534 shares of common stock at an exercise price of $ 10.3075 per share to the Placement Agent. The Placement Agent Warrants terminate 5 years from the date of issuance. The Placement Agent Warrants are not callable by the Company. Except for the exercise price, contract term, call option, and change in control provision, the Placement Agent Warrants have the same terms and conditions as the Series L Warrants. The Company assessed the Series L Warrants and Placement Agent Warrants issued in connection with the May 2025 PIPE Financing and determined that they do not require liability classification pursuant to ASC 480. Furthermore, the Series L Warrants and Placement Agent Warrants do not have any net cash settlement provisions that would preclude equity classification under ASC 815 - 40. Accordingly, the Series L Warrants and Placement Agent Warrants were recorded to additional paid-in capital in the condensed consolidated balance sheets. See Note 12, Preferred Stock for additional information on the Series B Convertible Preferred Stock issued by the Company in connection with the May 2025 PIPE Financing. In addition, the Company entered into a registration rights agreement with the investors requiring the Company to register for resale the shares of common stock issuable upon the conversion of the Series B Convertible Preferred Stock and Series L Warrants. Failure to timely maintain the registration shall lead to an obligation to pay to the investors cash liquidated damages equal to 2 % of each investor’s subscription amount for then outstanding securities for every 30 -day period the lapse continues, with unpaid amounts accruing interest at 18 % per annum after a specified grace period. On May 21, 2025, the Company filed the registration statement on Form S- 3 for the resale of shares of common stock issuable upon the conversion of the Series B Convertible Preferred Stock and Series L Warrants, and it was declared effective on May 30, 2025. It is not probable that the Company will be obligated to make payments under the registration rights agreement as of September 30, 2025 . At the Market Offering Agreement On May 19, 2025, the Company entered into an At Market Offering Agreement (“ATM Agreement”) with Ladenburg. Under the ATM Agreement, the Company may offer and sell up to $ 1.3 million of shares of common stock, par value $ 0.0001 per share, through Ladenburg. On June 13, 2025, the Company filed a prospectus supplement increasing the aggregate amount available to be sold to $ 3.2 million under the ATM (“Shares”). On August 7, 2025, the Company filed a prospectus supplement, which supersedes and replaces the prospectus supplement dated June 13, 2025, increasing the aggregate amount of shares available to be sold to $ 4.3 million. The Shares have been and will continue to be issued pursuant to the Company’s previously filed and effective Registration Statement on Form S- 3 (File No. 333 - 284217 ), which was initially filed with the Securities and Exchange Commission on January 10, 2025 and declared effective on January 22, 2025. The Company has no obligation to sell, and Ladenburg is not obligated to buy or sell, any of the Shares under the ATM Agreement and may at any time suspend offers under the ATM Agreement. The ATM Agreement will terminate upon the earlier of (i) the issuance and sale of all of the shares through Ladenburg on the terms and subject to the conditions set forth in the ATM Agreement or (ii) termination of the ATM Agreement as otherwise permitted thereby. The ATM Agreement may be terminated at any time by either party upon five ( 5 ) business days’ prior notice, or by Ladenburg at any time in certain circumstances, including the occurrence of a material adverse effect on the Company. The Company has agreed to pay Ladenburg a commission equal to 3 % of the aggregate gross proceeds from sale of its shares of common stock. As of September 30, 2025 , 868,582 shares of common stock had been sold under the ATM Agreement for gross proceeds of $ 4.0 million before deduction of commission and offering expenses of $ 0.3 million. 25 Table of Contents Warrants The following table presents the number of common stock warrants outstanding: Warrants outstanding, December 31, 2024 1,033,447 Issued 239,097 Exercised ( 162,947 ) Expired ( 30,654 ) Warrants outstanding, September 30, 2025 1,078,943 As of September 30, 2025 and December 31, 2024 , all warrants outstanding are recorded in additional paid-in capital in the condensed consolidated balance sheets. The following table presents the number and type of common stock purchase warrants outstanding, their exercise price, and expiration dates as of September 30, 2025 : Warrants Warrant Type Outstanding Exercise Price Expiration Date August 2021 Pharos Banker Warrants 7 $ 28,405.00 8/16/2026 February 2022 Series B Warrants 2,061 $ 2,660.00 2/4/2029 July 2022 Series C Warrants 1,495 $ 2,660.00 7/22/2027 September 2024 Series I Warrants 56,784 $ 13.30 3/3/2026 September 2024 Series J Warrants 188,363 $ 19.00 9/3/2029 September 2024 Representative Warrants 11,302 $ 29.45 8/29/2029 October 2024 Series K Warrants 562,945 $ 13.30 7/13/2030 October 2024 Placement Agent Warrants 16,888 $ 20.62 4/25/2030 Series L Warrants 225,564 $ 9.50 1/25/2031 Placement Agent Warrants May 2025 13,534 $ 10.31 6/6/2030 1,078,943 As of September 30, 2025 , the warrants issued by the Company had a weighted average exercise price of $ 22.65 . 26 Table of Contents Placement Fees In connection with offerings completed by the Company in 2022, (the "2022 Offerings"), the Company entered into an agreement with a placement agent that, subject to satisfaction of the requirements contained therein, called for a placement fee payable based on capital raised from certain investors for a definitive time following the expiration of the agreement. The accrued placement fee of approximat ely $ 1.4 million r elated t o the 2022 Offerings is included in accrued expenses in the condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024 . Additionally, the agreement called for the issuance of warrants with the following terms: Number of shares Exercise Price Expiration 174 $ 5,937.50 5 years 163 $ 3,325.00 5 years Note 12. Preferred Stock Series X Convertible Preferred Stock Pursuant to the Merger Agreement, all Old Catheter common stock shares issued and outstanding and Convertible Promissory Notes, representing an aggregate principal balance of $ 25.2 million, were converted into a right to receive 14,649.592 shares of a new class of the Company’s preferred stock, designated Series X Convertible Preferred Stock. Series X Convertible Preferred Stock has no voting rights prior to the conversion into common stock. While there are generally no voting rights of the Series X Convertible Preferred Stock, there are protective rights regarding the sales of the Company, change of control, etc. The remaining Series X Preferred Stock may convert into common stock only if the Company’s common stock has been delisted from the NYSE American or has been approved for initial listing on the NYSE American or another stock exchange, at a rate of 5.26 shares of common stock for each share of Series X Convertible Preferred Stock. Other than dividends payable in shares of common stock, Holders of Series X Convertible Preferred Stock will be entitled to receive dividends on shares of Series X Convertible Preferred Stock equal, on an as-if-converted-to-common stock basis, and in the same form as dividends actually paid on shares of common stock. Upon consummation of the Merger, each holder of Old Catheter Convertible Promissory Notes received, in exchange for discharge of the principal of their Notes, a number of shares of the Company's Series X Convertible Preferred Stock representing a potential right to convert into the Company's common stock in an amount equal to one common share for each $ 608 of principal amount. As of September 30, 2025 and December 31, 2024, the remaining 12,656 shares of Series X Convertible Preferred Stock are outstanding and are expected to remain outstanding until the Company meets the initial listing standards of the NYSE American or another national securities exchange or is delisted from the NYSE American, at which time they will convert into common stock. Series A Convertible Preferred Stock On January 9, 2023, the Company entered into a Securities Purchase Agreement for a Private Placement with the Investor. Pursuant to the Securities Purchase Agreement, shares of Series A Convertible Preferred Stock were issued, the conversion of which was approved at the Stockholders’ Meeting. After the final conversion on July 23, 2024, the Company had no shares of Series A Convertible Preferred Stock outstanding. The Series A Convertible Preferred Stock converted into common stock at the option of the holder at the Preferred Conversion Rate, subject to certain ownership limitations as described below. The conversion price was subject to adjustment in the case of stock splits, stock dividends, combinations of shares and similar recapitalization transactions. Subject to limited exceptions, holders of shares of Series A Convertible Preferred Stock did not have the right to convert any portion of their Series A Convertible Preferred Stock if the holder, together with its affiliates, would beneficially own in excess of 9.99 % of the number of shares of the Company’s common stock outstanding immediately after giving effect to its conversion. Holders of Series A Convertible Preferred Stock were entitled to receive dividends on shares of Series A Convertible Preferred Stock equal, on an as-if-converted-to-common stock basis, and in the same form as dividends actually paid on shares of the common stock. Except as otherwise required by law, the Series A Convertible Preferred Stock did not have voting rights. The Company also entered into a registration rights agreement with the purchasers requiring the Company to register for resale the shares of common stock issuable upon the conversion of the Series A Convertible Preferred Stock. Those shares of common stock were registered for resale on an effective registration statement on Form S- 1. 27 Table of Contents All of the Series A Convertible Preferred Stock were converted as follows: Date of Conversion Series A Shares Converted Common Shares Issued July 5, 2023 1,750 5,755 July 24, 2023 875 2,877 January 24, 2024 875 2,877 July 1, 2024 1,303 4,285 July 11, 2024 1,000 3,288 July 22, 2024 1,000 3,289 July 23, 2024 400 1,315 Each share of Series A Convertible Preferred Stock was convertible into approximately 3.29 shares of common stock. The common stock was issued pursuant to the exemption contained in Section 3 (a)( 9 ) of the Securities Act of 1933, as amended (the “Act”), which applies to transactions in which a security is exchanged by an issuer with its existing security holders exclusively where no commission or other remuneration is paid or given directly or indirectly for soliciting such exchange. The shares issued have been registered for resale on an effective registration statement on Form S- 1. As of September 30, 2025 and December 31, 2024, the Company had no shares of Series A Convertible Preferred Stock outstanding. Series B Convertible Preferred Stock On May 12, 2025, pursuant to the May 2025 PIPE Financing, the Company issued 3,000 shares of Series B Convertible Preferred Stock. Each share of the Series B Convertible Preferred Stock has a par value of $ 0.0001 and a stated value of $ 1,000 . Subject to certain ownership limitations as described below, the Series B Convertible Preferred Stock was convertible into an aggregate of 451,126 shares of common stock at the option of the holder. The Series B Convertible Preferred Stock are convertible at a fixed conversion rate determined by dividing the stated value of the Series B Convertible Preferred Stock by the conversion price of $ 6.65 , which approximates 150.38 shares of common stock issuable per share of Series B Convertible Preferred Stock. The conversion price is subject to adjustment in the case of stock dividends, stock splits, combination of shares and reclassification of shares. In the event of a stock dividend, reverse stock split, combination, or reclassification of shares of common stock, then, the conversion price shall be adjusted based on the number of shares of common stock outstanding immediately before and after such an event. The holders could convert all of the Series B Convertible Preferred Stock upon the date stockholder approval was obtained (“Stockholder Approval”). Stockholder Approval was obtained on July 25, 2025. Prior to Stockholder Approval, the Series B Convertible Stock could only be converted into up to 115,913 shares of common stock ( 19.99 % of the Company’s outstanding common stock on the date of issuance of the Series B Convertible Preferred Stock). Notwithstanding the foregoing, the holders of shares of Series B Convertible Preferred Stock do not have the right to convert any portion of their Series B Convertible Preferred Stock if the holder, together with its affiliates, would beneficially own a number of shares of common stock in excess of 4.99 % of the shares of common stock then outstanding (the “Beneficial Ownership Limitation”). At the holder’s option, the holder may increase the Beneficial Ownership Limitation to 9.99 % of the shares of common stock then outstanding, with any such increase becoming effective upon 61 days’ prior notice to the Company. Holders of Series B Convertible Preferred Stock are entitled to receive dividends and distributions on shares of Series B Convertible Preferred Stock equal to, on an as-if-converted-to-common stock basis, and in the same form as dividends and distributions actually paid on shares of common stock. The Series B Convertible Preferred Stockholders do not have a preference upon any liquidation, dissolution, or winding-up of the Company. In the event of certain restructuring or disposal events, then upon any subsequent conversion of the Series B Convertible Preferred Stock, for each convertible share that would have been issuable upon conversion immediately prior to the event, the holders shall receive the number of shares of common stock of the successor entity and any alternate consideration given to common stockholders. The conversion price shall be adjusted to apply to such alternate consideration based on the amount of alternate consideration issuable for one share of common stock. If holders of common stock are given any choice as to the securities, cash, or property received for alternate consideration, the holders of Series B Convertible Preferred Stock shall be given the same choice. The Series B Convertible Preferred Stock includes certain contingent payment provisions that should be bifurcated and accounted for as a derivative under ASC 815. The estimated fair value of these embedded derivatives was deemed to be de minimis at issuance and at September 30, 2025 . Except as otherwise required by law, the Series B Convertible Preferred Stock do not have any voting rights. Series B Convertible Preferred Stock were converted as follows: Date of Conversion Series B Shares Converted Common Shares Issued June 11, 2025 771 115,913 As of September 30, 2025 , the Company had 2,229 shares of Series B Convertible Preferred Stock outstanding. 28 Table of Contents Note 13. Stock-Based Compensation 2018 Equity Incentive Plan The 2018 Equity Incentive Plan (the "2018 Plan") was replaced by the 2023 Equity Incentive Plan (the "2023 Plan"), as described below. As of September 30, 2025 , stock options outstanding under the 2018 Plan were eliminated following the reverse stock split at 1 -for- 19 that was effective August 15, 2025. 2018 Employee Stock Purchase Plan In April 2024, the Company formally terminated the 2018 Employee Stock Purchase Plan (the “ESPP”). Since inception through termination, the Company issued 5 shares under the ESPP. Upon termination, all reserved shares were released back to the authorized pool. 2020 Inducement Equity Incentive Plan The Company adopted the 2020 Inducement Equity Incentive Plan (the “2020 Plan”) in March 2020 and terminated it in April 2024. On adoption, 3 shares were reserved for issuance. At termination, the remaining reserved shares were released back to the authorized pool. No shares are reserved for future issuance under the 2020 Plan as of September 30, 2025 and December 31, 2024. 2023 Equity Incentive Plan In July 2023, the Company’s stockholders approved the 2023 Plan as defined above, which provided for the grant of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock units, performance-based stock awards and other forms of equity compensation to the Company’s employees, directors and consultants. Stock options granted under the 2023 Plan to employees and consultants generally will vest annually over a five -year period or as determined by the Board’s Compensation Committee (the "Committee"), while grants to non-employee directors vest as determined by the Committee. As of September 30, 2025 and December 31, 2024 , 161,848 and 48,790 shares of common stock were reserved for issuance pursuant to future awards under the 2023 Plan. The number of shares available for issuance under the 2023 Plan also includes a quarterly increase commencing on September 1, 2023 by an amount equal to the lesser of (i) 10 % of the number equal to the number of shares of common stock outstanding on the applicable adjustment date less the number of shares of common stock outstanding at the beginning of the fiscal quarter immediately preceding the adjustment date, but if such number is a negative number, then the increase will be zero; or (ii) such lesser number of shares as may be determined by the Board. For the nine months ended September 30, 2025 , the Committee approved the grant of 140,373 stock options with service-based conditions and 19,987 stock options with performance-based conditions. The stock options with service-based conditions vest in equal installments over requisite service periods ranging from 2 to 5 years. Of the stock options with performance-based conditions, 11,832 contain performance conditions related to the achievement of specified quarterly sales targets in 2025 (“quarterly sales performance conditions”) and 8,155 contain performance conditions related to the achievement of tiered sales targets for 2025 (“tiered sales performance conditions”). As of September 30, 2025 , none of the quarterly sales performance conditions have been met and none of the tiered sales performance conditions are expected to be met. 29 Table of Contents The options granted for the 2023 Plan for the nine months ended September 30, 2025 and 2024 were valued using the Black-Scholes model based on the following assumptions on the date of issue: Options with Time-Based Vesting Conditions For the Nine Months Ended September 30, 2025 2024 Risk-free interest rate 4.29 - 4.55 % 4.01 - 4.65 % Volatility 97.40 - 100 % 175.36 - 214.61 % Expected dividend yield 0 % 0 % Expected life (in years) 5.5 - 6.5 6.5 Options with Performance-Based Vesting Conditions For the Nine Months Ended September 30, 2025 2024 Risk-free interest rate 4.55 % — Volatility 98.00 - 98.40 % — Expected dividend yield 0 % — Expected life (in years) 5.3 - 5.5 — The following is a summary of stock option activity for the 2023 Plan options for the nine months ended September 30, 2025 : Weighted Weighted Average Average Aggregate Stock Exercise Remaining Intrinsic Value Options Price Life (in thousands) Outstanding at December 31, 2024 3,701 $ 88.72 8.38 $ — Options exercised — — — — Options granted 160,360 6.34 — — Cancelled/forfeited ( 26,021 ) 8.82 — — Outstanding at September 30, 2025 138,040 $ 8.08 9.50 $ — Vested and expected to vest at September 30, 2025 138,040 $ 8.08 9.50 $ — Exercisable at September 30, 2025 13,573 $ 17.71 8.64 $ — The weighted-average grant-date fair value of the 2023 Plan options granted during the nine months ended September 30, 2025 and 2024 was $ 4.41 and $ 75.69 per share, respectively. Non-Plan Options Issued On January 6, 2025, the Board approved and issued a total of 26,315 Non-Plan Options as an employee incentive to the Chief Financial Officer. The options vest monthly over 3 years with an exercise price of $ 10.07 and an expiration date of January 6, 2035. The Non-Plan Options issued for the nine months ended September 30, 2025 and 2024 were valued using the Black-Scholes model based on the following assumptions on the date of issue: For the Nine Months Ended September 30, 2025 2024 Risk-free interest rate 4.62 % 4.63 % Volatility 97.00 % 211.61 % Expected dividend yield 0 % 0 % Expected life (in years) 5.8 6.5 The following is a summary of stock option activity for the Non-Plan options for the nine months ended September 30, 2025 : Weighted Weighted Average Average Aggregate Stock Exercise Remaining Intrinsic Value Options Price Life (in thousands) Outstanding at December 31, 2024 1,315 $ 101.10 9.33 $ — Options exercised — — — — Options granted 26,315 10.07 — — Cancelled/forfeited ( 1,315 ) 101.10 — — Outstanding at September 30, 2025 26,315 $ 10.07 9.27 $ — Vested and expected to vest at September 30, 2025 26,315 $ 10.07 9.27 $ — Exercisable at September 30, 2025 5,847 $ 10.07 9.27 $ — The weighted-average grant-date fair value of the Non-Plan options granted during the nine months ended September 30, 2025 and 2024 was $ 7.92 and $ 99.33 per share, respectively. Restricted Stock Awards A summary of the restricted stock award activity for the nine months ended September 30, 2025 is presented below. Weighted Average Restricted Grant Date Stock Awards Fair Value Outstanding at December 31, 2024 — $ — Granted 17,263 8.93 Vested ( 11,263 ) 8.93 Cancelled/forfeited — — Outstanding at September 30, 2025 6,000 $ — Stock-based compensation expense is recorded in selling, general and administrative expenses in the condensed consolidated statements of operations. Stock-based compensation expense for the three and nine months ended September 30, 2025 was $ 70 thousand and $ 259 thousand, respectively. Stock-based compensation expense for the three and nine months ended September 30, 2024 was $ 17 thousand and $ 36 thousand , respectively. Total unrecognized estimated stock-based compensation expense by award type and the remaining weighted average recognition period over which such expense is expected to be recognized at September 30, 2025 was as follows: Unrecognized Expense (in thousands) Remaining Weighted Average Recognition Period Stock options (Non-Plan Options) $ 157 2.3 Stock options (2023 Plan Options) $ 620 3.5 Restricted stock awards $ 10 0.04 30 Table of Contents Note 14. Asset Acquisitions On January 24, 2025, the Company acquired 100 % of the membership interests of Perikard, LLC, which was accounted for as an asset acquisition consisting primarily of a single patent for pericardial access technology. The Company issued 14,473 shares of its common stock valued at $ 113 thousand as consideration and is obligated to make royalty payments equal to 10 % of net sales of the pericardial access kit for five years following the closing date. The patent was determined to be IPR&D with no alternative future use, and accordingly, the Company recognized $ 119 thousand, consisting of $ 113 thousand of stock consideration and $ 6 thousand of direct transaction costs for the nine months ended September 30, 2025 . As of September 30, 2025 , the Company has not recognized a liability for the contingent royalty payments because they are currently not probable or reasonably estimable. On May 5, 2025, Cardionomix acquired certain assets from Cardionomic. The assets primarily related to Cardionomic’s CPNS System, which represents a novel technology for the late-stage treatment of acute decompensated heart failure. The acquisition was accounted for as an asset acquisition consisting primarily of an IPR&D Asset (the CPNS System). The Company issued 52,631 shares of its restricted common stock valued at $ 0.3 million, and Cardionomix issued a promissory note recorded at a carrying amount of $ 1.3 million (the "Note Payable"), as consideration to Cardionomic. The common stock issued has not been registered under the Securities Act, such that the shares may not be transferred by the Seller absent an effective registration statement or an exemption from registration. Furthermore, the common stock could not be transferred for six months after the closing date, after which Cardionomic may only transfer the common stock to permitted transferees with the express written consent of the Company, which shall not be unreasonably withheld. The IPR&D Asset was determined to have no alternative future use, and accordingly, the Company expensed the costs of acquisition of $ 1.9 million, consisting of $ 0.3 million in stock consideration, $ 1.3 million of promissory note, and $ 0.3 million in direct transaction costs, as acquired research and development expenses in the condensed consolidated statements of operations for the nine months ended September 30, 2025 . See Note 7, Notes Payable for additional information on the Note Payable. Note 15. Income Taxes The provision for income taxes for interim periods is determined using an estimated annual effective tax rate. The effective tax rate may be subject to fluctuations during the year as new information is obtained, which may affect the assumptions used to estimate the annual effective tax rate, including factors such as valuation allowances against deferred tax assets, the recognition or de-recognition of tax benefits related to uncertain tax positions, if any, and changes in or the interpretation of tax laws in jurisdictions where the Company conducts business. For the three and nine months ended September 30, 2025 , the Company recorded federal income tax provision of $ 78 thousand and federal income tax benefit $ 1,596 thousand, r espectively, and no state income tax provision or benefit. For the three and nine months ended September 30, 2024 the Company recorded no provision or benefit for federal and state income tax expense. The federal income tax benefit primarily relates to an increase in net operation losses that are not subject to limitations under Section 382 of the Internal Revenue Code. The Company’s net deferred tax assets generated mainly from net operating losses are fully offset by a valuation allowance as the Company believes it is not more likely than not that the benefit will be realized. The Company will continue to assess its position in future periods to determine if it is appropriate to reduce a portion of its valuation allowance in the future. The Company has no open income tax audits with any taxing authority as of September 30, 2025 . Note 16. Commitments and Contingencies In the normal course of business, the Company is at times subject to pending and threatened legal actions. In management’s opinion, any potential loss resulting from the resolution of these matters will not have a material effect on the results of operations, financial position or cash flows of the Company. As of September 30, 2025 , the Company had no outstanding litigation. Note 17. Related Parties Prior to the Merger, David A. Jenkins, the Company’s current Executive Chairman of the Board and Chief Executive Officer, and Old Catheter’s Chairman of the Board of Directors, and his affiliates held approximately $ 25.1 million of Old Catheter’s Convertible Promissory Notes, or the Notes, that were converted into 7,856.251 shares of Series X Convertible Preferred Stock in connection with the Merger (see Note 12, Preferred Stock). In consideration for forgiving the interest accrued but remaining unpaid under the Notes in an aggregate amount of approximately $ 13.9 million, Mr. Jenkins and his affiliates also received royalty rights equal to approximately 12 % of the net sales, if any, of LockeT, commencing upon the first commercial sale and through December 31, 2035. The Company entered into an additional royalty agreement for the LockeT device with Auston Locke, who is the son of Robert Locke, VP of Product Development. Under this agreement, the Company will pay a 5 % royalty rate on net sales up to $ 1 million in cumulative royalties. In April 2025, a US patent was granted by the United States Patent and Trademark Office, after which the Company is obligated to pay an additional royalty of 2 % of net sales only after the initial $ 1 million of 5 % royalties has been paid, up to a maximum of $ 10 million in additional royalties. Refer to Note 2, Summary of Significant Accounting Policies and Note 8, Royalties Payable for additional information over the royalties payable due to these related parties. In addition to the shares described above that were issued in connection with the Notes, Mr. Jenkins and his affiliates received 1,325.838 shares of Series X Convertible Preferred Stock in the Merger, and Mr. Jenkins’ adult children received 1,284.344 shares of Series X Convertible Preferred Stock in the Merger, all in exchange for their equity interests in Old Catheter in accordance with the Merger exchange ratio. As of September 30, 2025 , a total of 9,239.285 shares of Series X Preferred Stock were held by these related parties. 31 Table of Contents Mr. Jenkins’ daughter, the Company’s non-executive Chief Operating Officer, received options to purchase 757 shares of the Company’s common stock upon the closing of the Merger in exchange for her options to purchase shares of Old Catheter common stock, converted based on the exchange ratio in the Merger. Of the total options to purchase 757 shares of the Company’s common stock, 17 options have expired as of September 30, 2025 , and the remaining 740 options have an exercise price of $ 383.80 per share. On May 1, 2024, Marie-Claude Jacques, the Company’s then Chief Commercial Officer, received a non-plan option to purchase 1,315 shares of the Company’s common stock. The options have an exercise price of $ 101.10 per share, vest at 20 % per year for 5 years and expire in May 2034. On January 29, 2025, Ms. Jacques received an incentive stock option to purchase 13,154 shares of the Company's common stock. The options had an exercise price of $ 7.98 per share, 1,315 options vested on the grant date and an additional 1,315 options were to vest annually for 4 years, 1,644 options were to vest quarterly upon achievement of quarterly sales targets during 2025 and expire in January 2035. Ms. Jacques’ employment was terminated on June 2, 2025, and all unvested options were cancelled, consisting of 1,315 unvested non-plan options and 13,154 unvested incentive stock options. During the year ended December 31, 2024, the Company entered into various short-term promissory notes with various related parties (the “Related Party Notes”). These Related Party Notes had a maturity date of August 30, 2024 and interest rates of 8 % per annum. On August 23, 2024, the Notes were amended to extend the maturity date to January 31, 2026 and increase the interest rate to 12 % per annum effective August 31, 2024. On July 11, 2025, two short-term promissory notes with a face value of $ 150 thousand each were issued by KardioNav to the Company's Chief Executive Officer and Lifestim, Inc., a company controlled by the Company's Chief Executive Officer. The promissory notes have a maturity date of July 11, 2026, and interest rates of 4.2 % per annum, payable upon maturity. See Note 7, Notes Payable for further information. The related parties and the amounts owed to each related party as of September 30, 2025 are summarized in the following table (in thousands): Related Party Issuance Date Principal Amount Interest Accrued David Jenkins 5/30/2024 $ 500 $ 65 FatBoy Capital 6/25/2024 $ 150 $ 20 FatBoy Capital 7/1/2024 $ 250 $ 33 FatBoy Capital 7/18/2024 $ 100 $ 13 Jenkins Family Charitable Institute 7/25/2024 $ 500 $ 65 David Jenkins 7/11/2025 $ 150 $ 1.5 Lifestim, Inc. 7/11/2025 $ 150 $ 1.5 On September 3, 2024, the Jenkins Family Charitable Institute also invested approximately $ 500,000 in the Company’s public offering and received 13,947 shares of common stock; 12,368 pre funded warrants with an exercise price of $ 0.0019 and no expiration date; 26,316 Series H Warrants with an exercise price of $ 19.00 per share that expired on March 3, 2025; 26,316 Series I Warrants with an exercise price of $ 19.00 per share that expire on March 3, 2026; and 26,316 Series J Warrants with an exercise price of $ 19.00 per share that expire on September 3, 2029. On October 28, 2024, the Jenkins Family Charitable Institute exercised all 12,368 pre funded warrants and received 12,368 shares of common stock of the Company. On December 31, 2024, the Jenkins Family Charitable Institute distributed 23,684 Series J warrants to its trustee and two advisors, who are daughters of Mr. Jenkins. On January 6, 2025, Philip Anderson, the Company's Chief Financial Officer, received a non-plan option to purchase 26,315 shares of the Company's common stock. The options have an exercise price of $ 10.07 per share, vest monthly over 36 months and expire in January 2035. In February 2025, Catheter formed its subsidiary Cardionomix. The capitalization structure of the newly formed entity included 82 % of the common stock of Cardionomix held by the Company, 5 % of the common stock of Cardionomix held by Mr. Jenkins, 7 % of the common stock by affiliates of Mr. Jenkins, and the remaining 6 % held by third parties. On June 20, 2025, Catheter formed a new subsidiary, KardioNav. The capitalization structure of the newly formed entity include 57 % of the common stock of KardioNav held by the Company, 33 % of the common stock of KardioNav held by Chelak iECG, Inc., an unrelated third party, 3 % of the common stock of KardioNav held by Mr. Jenkins and 7 % of the common stock of KardioNav held by affiliates of Mr. Jenkins. On July 11, 2025, two short-term promissory notes with a face value of $ 150 thousand each were issued by KardioNav to the Company's Chief Executive Officer and Lifestim, Inc., a company controlled by the Company's Chief Executive Officer. The promissory notes have a maturity date of July 11, 2026, and interest rates of 4.2 % per annum, payable upon maturity. Note 18. Subsequent Events Increase in the Number of Authorized Shares of Common Stock On October 10, 2025, at a special meeting of stockholders of the Company, the stockholders approved an amendment to the Amended and Restated Certificate of Incorporation of the Company, to effect an increase to the Company’s authorized common stock, from 60 million to 500 million shares of common stock. The amendment became effective on October 17, 2025, after the filing of the Certificate of Amendment with the State of Delaware . 32 Table of Contents