GTHP · Guided Therapeutics, Inc.

Operating Performance Overview

Liquidity and Going Concern Considerations

Cash flow from operating activities was -$1.07 million for fiscal 2025, with $2,000 in capital expenditures leading to free cash flow of -$1.1 million for the period. Management has disclosed that the company has incurred significant losses since its inception, triggering formal going concern risk considerations as part of its liquidity disclosures. If the company is unable to raise sufficient additional capital, it plans to curtail operations by reducing discretionary spending, cutting staffing levels, and limiting activities to only those supported by external financing.

Operational and Strategic Outlook

Management notes that while cost structure and gross margins may improve as production volumes scale, the timing and extent of these improvements remain uncertain. Sales and marketing expenses are expected to stay limited in 2026 as the company prioritizes securing regulatory approvals for its products in the United States and China. The company also faces potential supply chain risks from global conflicts, which could raise transportation and energy costs, as well as create additional regulatory and economic uncertainty. While Guided Therapeutics holds significant existing inventory, it will need to procure additional parts and services to support future production runs.