0001437749-26-017121
SEC filingRevenue grew 175% YoY to $22K, but operating loss widened 47.5% to $8.0M on higher R&D and professional fees, while net income swung from $19.0M profit to $60K loss due to non-recurring prior-year gains.
Operating loss widened 47.5% to $8.0 million from $5.4 million in the prior year, primarily due to higher research and development costs for Veris' implantable physiological monitor and increased professional fees related to financing activities. Gross profit was negative $75,000, compared to negative $28,000, resulting in a gross margin of -340.9%. Management explains that platform costs are incurred in periods before related revenue is recognized, causing variability in gross margin.
Net income was a loss of $60,000, compared to a profit of $19.0 million in Q1 2025. The prior-year profit included a significant gain from the fair value adjustment of Lucid, which did not recur. Diluted EPS was -$4.42, versus $0.34 in the prior year.
Net cash used in operating activities was $2.6 million, up from $1.6 million in Q1 2025. Capital expenditures were $22,000, resulting in free cash flow of -$2.6 million. Management has assessed the company's ability to continue as a going concern for one year from the financial statement issuance date and has expressed substantial doubt, citing recurring losses and negative cash flows from operations. The company expects to continue to experience losses and negative cash flows in the near future.