Quarta-Rad, Inc. Annual Report: A Simple Breakdown

I’ve put together this guide to help you understand Quarta-Rad’s performance this year. My goal is to turn complex financial filings into plain English so you can decide if this company fits your investment goals.

1. What does the company do?

Quarta-Rad is undergoing a total identity shift. For a decade, they made radiation detection devices like Geiger counters. That business is now effectively closed, with sales dropping 88% as they stopped production.

The company now operates entirely through its subsidiary, Sellavir, Inc. They have pivoted from hardware to software. Their focus is "CenterEye," an AI platform that analyzes call center audio and video to track agent performance and customer sentiment.

2. Financial performance

The numbers show a business in survival mode. Quarta-Rad lost $257,000 in 2025, compared to a $217,000 loss in 2024. Total revenue fell to just $12,000, down from $145,000 the previous year. Because operating costs stayed flat at $269,000, the company is burning through its remaining cash without enough sales to cover expenses.

3. Financial health: The "Going Concern" warning

Auditors issued a "going concern" warning, signaling serious doubt about whether the company has enough cash to stay in business for the next year.

As of December 31, 2025, the company had only $73,000 in cash. With no full-time employees, they rely on contractors and management. They depend entirely on a line of credit and loans from their majority shareholder to keep the lights on.

4. Major wins and challenges

• The Big Pivot: Moving to AI software is a high-risk move. It requires significant marketing and sales spending, which the company currently cannot afford.
• The Partnership: In January 2026, they signed a deal with Genesys Cloud. This lets them list CenterEye on the Genesys AppFoundry, giving them access to a large base of potential enterprise customers.
• Internal Controls: Management identified "material weaknesses" in their accounting. They lack an independent audit committee and proper financial documentation, which creates a risk that their financial reports may not be fully accurate.

5. Key risks

• Survival Risk: The company burns over $20,000 per month with almost no recurring sales. They face imminent insolvency unless the Genesys partnership brings in immediate, high-paying contracts.
• Competition: The AI market is dominated by giants like Salesforce, NICE, and Verint. These companies have much larger budgets and established sales teams.
• No Intellectual Property: The company holds no patents or trademarks for CenterEye, meaning they have no legal protection to stop competitors from copying their software.

6. Future outlook

The company’s future depends entirely on the success of CenterEye. Management aims to turn the Genesys integration into five pilot programs by the third quarter of 2026. If these pilots fail, the company will likely need to issue more shares—reducing your ownership percentage—or take on more debt. Both options would hurt existing shareholders.

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Investor Takeaway: This is a micro-cap company in a fragile financial state. Before considering an investment, ask yourself if you are comfortable with the high probability of share dilution or the risk of insolvency, given the company's current lack of revenue and heavy reliance on shareholder loans. Proceed with extreme caution.