0001140361-26-020115
SEC filingRevenue grew 24.5% to $425K with gross margin of 62.7%, while operating loss improved 22.7% to -$4.2M; net income of $846K was driven by non-cash gains. Cash burn continues, with liquidity expected only into Q3 2026.
Revenue increased 24.5% year-over-year to $424,889, driven primarily by sales of FemVue, the company's fallopian tube assessment diagnostic. This marks continued commercial traction for the FDA-cleared product, which is also approved in multiple international markets. Gross margin remained healthy at 62.7%, reflecting the product mix and pricing discipline. The company is actively expanding its commercial footprint through partnerships, including a strategic distribution agreement with OR Consulting in Switzerland and a partnership with Refuah Health Center to advance FemaSeed adoption in community-based care. The recent commercial launch of FemaSeed Complete, a comprehensive fertility solution enabling OB/GYNs to perform first-line insemination in-office, represents a key catalyst for future revenue growth.
Operating cash flow was -$4.1 million, slightly improved from -$4.8 million a year ago, but still reflecting the company's cash-intensive pre-profitability stage. Capital expenditures were minimal at $79,138, resulting in free cash flow of -$4.2 million. As of March 31, 2026, cash and cash equivalents stood at $5.4 million. Management explicitly states that current cash, together with anticipated product revenues, is expected to fund operations only into the third quarter of 2026. The company has concluded that substantial doubt exists about its ability to continue as a going concern and will need to raise additional capital.
Management's outlook is cautious: the company expects to need additional funding to complete U.S. development and commercialization of its product candidates, including FemBloc permanent birth control system, which recently initiated patient enrollment in the FINALE pivotal trial. The company also faces Nasdaq listing compliance challenges, having received notices for both minimum market value of listed securities and minimum bid price deficiencies. Stockholders approved a reverse stock split in April 2026 to address the bid price issue, but there is no assurance of sustained compliance. The primary risk remains the ability to raise sufficient capital to fund operations beyond Q3 2026 and achieve commercial scale.