0001437749-26-017046
SEC filingRevenue grew 16% to $7.1M on higher procedure volumes, but operating loss narrowed to -$924K; net loss remained near flat at -$612K. Strong free cash flow of $2.1M was offset by a sharp capex decline, while debt covenant defaults raise going-concern risk.
Revenue for the three months ended March 31, 2026 increased 15.9% to $7.1 million from $6.1 million in the same period last year. The increase was driven by higher procedure volume from the direct patient services segment, partially offset by lower procedure volume from the leasing segment. The company's facility in Ecuador experienced a significant volume increase following an upgrade that shortened treatment times, while PBRT volumes increased due to normal cyclical fluctuations.
Net loss for the quarter was -$612,000, or -$0.09 per diluted share, compared to -$625,000, or -$0.10 per diluted share, in the prior year. The slight improvement in net loss was driven by the lower operating loss, but was largely offset by higher income tax expense. The effective tax rate remained unfavorable due to the company's valuation allowance against deferred tax assets.
Net cash provided by operating activities was $2.1 million, compared to $2.5 million in the prior year, reflecting continued strong cash generation from operations. Free cash flow was $2.1 million, as capital expenditures plummeted to $41,000 from $4.0 million in the prior year. The sharp decline in capex signals a pause in investment, likely due to liquidity constraints and the company's focus on preserving cash amid debt covenant defaults.