🧾 What This Document Is

This is a press release filed as an 8-K, announcing Catheter Precision's financial results for 2025 and a major strategic update. It's not just a routine report; it's a story of transformation. The company is telling investors that 2025 was a year of groundwork in its medical device business, and 2026 will be about explosive expansion into a completely new industry.

🏢 What The Company Does

👉 In simple terms, Catheter Precision makes high-tech tools for heart doctors. They have two main products: VIVO, a 3D imaging system to map heart problems before surgery, and LockeT, a device to help stop bleeding after procedures. They sell these to hospitals and clinics in the electrophysiology market. Until recently, that was their only business.

🚀 The Big Strategic Shift: A New Business

The headline news isn't the 2025 results—it's the acquisition of Flyte after the year ended. This is a huge, unexpected pivot.

• What Flyte Is: A regional air mobility (short-hop private jet) company with active revenue and FAA-certified operations.
• Why It Matters: Catheter Precision is now a two-platform company. It's gone from being a pure-play medical device firm to a conglomerate with one foot in healthcare and another in aviation. Management believes this creates "multiple strategic pathways to unlock shareholder value."

💰 2025 Financial Highlights (The Medical Device Business)

While the big news is the acquisition, here's how the core business performed last year:

• Revenue Jumped: Full-year 2025 revenue was $819 thousand, a 95% increase from 2024's $420 thousand. This shows their commercial efforts are gaining traction.
• Strong Gross Margin: They made money efficiently on each sale, with a gross margin of 92.3%.
• Still Unprofitable: The company posted a net loss of $17.2 million. Importantly, $7.8 million of that loss was from non-cash expenses (like accounting adjustments and stock-based compensation), meaning the cash burn was lower.

📦 Post-Year-End Moves: Financing & Structure

Alongside buying Flyte, the company "completed financing initiatives to strengthen its balance sheet." In plain English, they raised money to fund this bold new strategy. They are now structured into two clear segments:

1. Medical Device Platform: The existing VIVO and LockeT business.
2. Aviation Platform (Flyte): The new regional jet service.

🔮 What's Next: A Two-Pronged Growth Plan

Management's outlook for 2026 is all about executing on two parallel tracks:

1. Scale the Aviation Business: Grow Flyte's fleet and add more short-haul routes in underserved markets.
2. Grow the Medical Business: Continue commercial adoption of VIVO and LockeT globally.
3. Explore "Strategic Alternatives": This is corporate code for they might consider further deals, partnerships, or even separating the businesses to maximize the value of each segment.

⚖️ Big Picture: Strengths & Risks

• 👍 Strengths: Proven revenue growth in med-tech; a bold move into a new, large market (aviation); a strengthened bank account to fund the plan.
• ⚠️ Risks: This is a radical shift. The company is now managing two completely unrelated, capital-intensive industries. Investors are being asked to believe in two separate growth stories at once, which adds complexity and execution risk. The core med-tech business, while growing, is still small and unprofitable.

🧠 The Analogy

Imagine a skilled heart surgeon who, over the last year, got really good at a new surgical technique. Then, suddenly, she announces she's also buying a fleet of airplanes to start a regional air shuttle. Her medical practice is growing, but now she wants investors to fund and believe in her vision as both a doctor and an airline CEO. The 2025 results show her medical technique is working; the 2026 plan bets she can excel in two totally different fields at once.

📇 Key Contacts & People

• Investor Relations: 973-691-2000, [email protected]
• Chief Executive Officer: David A. Jenkins

🧩 Final Takeaway

Catheter Precision delivered strong 95% revenue growth for its medical devices in 2025, but the real story is its sudden, transformative leap into the aviation business in early 2026. The company is now a high-risk, high-pitch play on two entirely different industries, betting it can create more value by running them together.