Catheter Precision, Inc. Annual Report: A Plain-English Guide

I have put together this guide to help you understand how Catheter Precision performed this year. My goal is to break down their financial filings into simple terms so you can decide if this company fits your investment strategy.

1. What does this company do?

Catheter Precision is a medical technology company focused on heart rhythm care. Their main product, VIVO, is a 3D imaging system that helps doctors find the source of heart rhythm problems before a procedure starts. They are currently in a phase of intense growth, focusing on developing their technology and managing the finances needed to keep operations running. They are also working to sell the LockeT, a tool that secures cardiac catheters.

2. Financial Health: Survival Mode

The company is in a "heavy lifting" phase. They reported a loss of about $14.5 million this year because they spend much more on research and administration than they earn in sales.

• Capital Structure: The company issued several types of preferred stock and warrants. These often include rules that trigger the issuance of more shares if the stock price drops, which reduces your ownership percentage in the company.
• Concentration Risk: Their income is not well-diversified. One distributor provided 40% of their total revenue. They also rely on a few contract manufacturers to build their products; if they lose a primary manufacturer, they would have to stop selling those products entirely.
• Recent Moves: On August 15, 2025, the company performed a 1-for-20 reverse stock split to meet stock exchange rules. They also took on debt through convertible notes with interest rates between 8% and 12%. These must be paid back or turned into shares, which creates uncertainty for the company’s balance sheet.

3. Major Wins and Challenges

• Cybersecurity: Because VIVO software connects to hospital networks, the company treats cybersecurity as a major risk. They hire outside experts to monitor their systems 24/7 and have a plan to alert top leadership immediately if a security breach occurs.
• Growth Strategy: They are buying assets, such as intellectual property from Cardionomics and the Kardionav system. These moves aim to help them compete in the $1 billion-plus global market for heart mapping and surgery.

4. Key Risks: What could go wrong?

• Dilution: The company has millions of warrants and options that allow people to buy shares at prices often lower than the current market price. Each time these are used, your "slice of the pie" gets smaller.
• Dependency: The company lacks a broad customer base. With revenue in the low millions, losing their main distributor or failing to win new hospital contracts could cause a cash crisis.
• Debt & Financing: The company relies on debt that can be converted into shares. Because they lose money every month, they must constantly raise cash. This often involves selling shares at a discount, which can drive the stock price down further.

5. Future Outlook

The company is planning for the long term, with some financial agreements lasting until 2031. However, they are not yet self-sustaining. They must raise new capital every six to nine months to stay in business. For now, they are prioritizing survival and market growth over making a profit.

Final Thought for Investors: When considering this company, ask yourself if you are comfortable with a "high-risk, high-reward" profile. Because they are currently burning cash to fund growth, your investment success depends heavily on their ability to secure new hospital contracts and manage their debt without diluting shareholders too aggressively. Keep a close eye on their quarterly cash flow—it is the most important indicator of whether they can reach their long-term goals.