Ehave, Inc. Annual Report - How They Did This Year

I’ve put together this guide to help you understand Ehave, Inc.’s performance over the past year. My goal is to explain their complex filings in plain English so you can decide if this company fits your investment strategy.

1. What does this company do and how did they perform?

Ehave is a health-tech company focused on cognitive assessment tools and therapeutic video games designed to diagnose and treat brain-related disorders. The company is currently transitioning from research and development into commercialization. This year, they generated $2,183 in revenue. While this is a modest figure for a public company, it marks their first revenue in three years. Their primary focus remains the "Ehave Connect" platform and their suite of digital health applications.

2. Financial performance

Ehave’s operating costs, primarily driven by administrative fees and development spending, continue to outpace their revenue. In 2025, the company reported a loss of $3.76 million, compared to $2.75 million in 2024 and $2.41 million in 2023. They currently carry an "accumulated deficit" of over $40 million, reflecting the long-term costs associated with building their business since 2011.

3. Financial health: The "Going Concern" warning

Auditors have issued a "going concern" warning for Ehave, indicating "substantial doubt" regarding the company’s ability to continue operations. Projections suggest the company may exhaust its cash reserves by the fourth quarter of 2026. Because they lack the cash flow to fund operations for the coming year, their survival is contingent upon their ability to secure additional capital from investors.

4. Major risks

Investors should be aware of several significant challenges facing the company:

• Dilution: Because the company lacks steady income, they rely on selling additional shares to raise capital. This process increases the total number of shares, which reduces your ownership percentage and may impact the value of your investment.
• Internal Controls: The company has identified "material weaknesses" in their accounting processes. These gaps in their financial tracking systems increase the risk of errors in their reporting.
• Intellectual Property: Certain software rights are held by partners, such as the Hospital for Sick Children, rather than by Ehave directly. This limits the company’s full control and potential profit margins on those specific products.
• Competition: Ehave operates in a highly competitive market against larger, better-funded companies with established reputations.
• Key Personnel: The company’s operations are heavily dependent on a small group of consultants and executives. The loss of these individuals could significantly disrupt the company’s ability to execute its business plan.

5. The Bottom Line

Ehave is a high-risk, early-stage company. With minimal revenue, rising annual losses, and a formal auditor warning regarding their cash runway, they function much like a startup within the public market. Their future depends entirely on their ability to prove their technology’s viability and secure further funding. Before investing, consider whether you are comfortable with the high level of uncertainty regarding the company's long-term survival.