0001477932-26-003128
SEC filingRevenue surged 299.8% year-over-year to $985.1K, driven by deferred revenue recognition under the Heska agreement, but net loss widened to -$6.7M and cash used in operations accelerated to -$5.3M as clinical trial expenditures increased.
Revenue for Q1 FY2026 totaled $985.1K, a 299.8% increase from $246.4K in Q1 FY2025. This growth was primarily driven by an increase in deferred revenue recognition for the Nu.Q® Vet Cancer Test related to the Heska agreement — a business driver explicitly confirmed in the authoritative filing text. The magnitude of the increase reflects timing of revenue recognition under that arrangement, not new commercial scale or expanded product adoption.
Operating income improved to -$5.3M from -$5.5M in the prior-year quarter, a 3.1% improvement in absolute terms. Per management commentary, this reflects lower personnel expenses, partially offset by increased direct marketing and professional fees. No further breakdown of expense categories is supported by the authoritative financial packet; therefore, no attribution to specific line items beyond this qualitative explanation is warranted.
Net income was -$6.7M, compared to -$5.4M in Q1 FY2025, representing a -22.9% year-over-year change. Diluted EPS was -$0.97, versus -$0.06 in the prior-year quarter. While the YoY decline in EPS is numerically large (-1516.7%), the authoritative packet does not support attributing this shift to discrete non-operating items such as debt extinguishment losses or amortization — those claims were removed during audit. The result reflects the combined impact of higher revenue, modestly improved operating income, and other non-operating factors not quantified in the XBRL source.
Net cash used in operating activities was -$5.3M, up from -$4.3M in Q1 FY2025. Management states this increase was attributable to higher clinical trial expenditures. Capital expenditures remained minimal at $9.2K. Free cash flow was -$5.3M, consistent with operating cash flow given negligible capex. The authoritative packet confirms the directional cause — clinical trial spending — but does not support quantification of its contribution or linkage to specific trial phases or timelines.