KESTRA MEDICAL TECHNOLOGIES, LTD.

Previous wording

Our fiscal year ends on April 30 of each year. We incurred net losses of $32.8 million and $20.6 million for the three months ended October 31, 2025 and 2024, respectively. We incurred net losses of $58.6 million and $40.9 million for the six months ended October 31, 2025 and 2024, respectively. For the three months ended October 31, 2025, we generated revenue of $22.6 million, with a gross profit of $11.4 million, compared to revenue of $14.7 million, with a gross profit of $5.8 million, for the three months ended October 31, 2024. For the six months ended October 31, 2025, we generated revenue of $41.9 million, with a gross profit of $20.3 million, compared to revenue of $27.5 million, with a gross profit of $10.0 million, for the six months ended October 31, 2024. As of October 31, 2025, we had cash and cash equivalents balances of $175.4 million, and an accumulated deficit of $578.9 million.

Current wording

Our fiscal year ends on April 30 of each year. We incurred net losses of $34.2 million and $21.8 million for the three months ended January 31, 2026 and 2025, respectively. We incurred net losses of $92.8 million and $62.7 million for the nine months ended January 31, 2026 and 2025, respectively. For the three months ended January 31, 2026, we generated revenue of $24.6 million, with a gross profit of $12.9 million, compared to revenue of $15.1 million, with a gross profit of $6.5 million, for the three months ended January 31, 2025. For the nine months ended January 31, 2026, we generated revenue of $66.5 million, with a gross profit of $33.2 million, compared to revenue of $42.6 million, with a gross profit of $16.6 million, for the nine months ended January 31, 2025. As of January 31, 2026, we had cash and cash equivalents balances of $291.3 million, and an accumulated deficit of $613.0 million.

Previous wording

To date, we have recorded a limited amount of United States federal and state income state expense. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities, projected future taxable income, carryback opportunities and tax planning strategies in making the assessment. We believe it is more likely than not that we will not realize the benefits of these deductible differences and have applied a full valuation allowance against them.

Current wording

To date, we have recorded a limited amount of United States federal and state income tax expense. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities, projected future taxable income, carryback opportunities and tax planning strategies in making the assessment. We believe it is more likely than not that we will not realize the benefits of these deductible differences and have applied a full valuation allowance against them.

Previous wording

The following tables set forth our results of operations for the three and six months ended October 31, 2025 and 2024. We have derived the data for the three and six months ended October 31, 2025 and 2024 from our unaudited interim condensed consolidated financial statements included elsewhere in this Quarterly Report. This information should be read in conjunction with our unaudited interim condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report. The results for historical periods are not necessarily indicative of the results of operations for any future period, and our interim results are not necessarily indicative of the results to be expected for the full year.

Current wording

The following tables set forth our results of operations for the three and nine months ended January 31, 2026 and 2025. We have derived the data for the three and nine months ended January 31, 2026 and 2025 from our unaudited interim condensed consolidated financial statements included elsewhere in this Quarterly Report. This information should be read in conjunction with our unaudited interim condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report. The results for historical periods are not necessarily indicative of the results of operations for any future period, and our interim results are not necessarily indicative of the results to be expected for the full year.

Previous wording

Comparison of the Three and Six Months Ended October 31, 2025 and 2024

Current wording

Comparison of the Three and Nine Months Ended January 31, 2026 and 2025

Previous wording

Revenue for the three months ended October 31, 2025 increased by $7.9 million, or 53%, compared to the three months ended October 31, 2024. Revenue growth was primarily driven by a 54% increase in the number of patients using our products while reimbursement rates remained consistent.

Current wording

Revenue for the three months ended January 31, 2026 increased by $9.5 million, or 63%, compared to the three months ended January 31, 2025. Revenue growth was primarily driven by a 58% increase in the number of patients using our products.

Previous wording

Revenue for the six months ended October 31, 2025 increased by $14.4 million, or 53%, compared to the six months ended October 31, 2024. Revenue growth was primarily driven by a 53% increase in the number of patients using our products while reimbursement rates remained consistent.

Current wording

Revenue for the nine months ended January 31, 2026 increased by $23.9 million, or 56%, compared to the nine months ended January 31, 2025. Revenue growth was primarily driven by a 55% increase in the number of patients using our products.

Previous wording

Cost of revenue for the six months ended October 31, 2025 increased by $4.2 million, or 24%, compared to the six months ended October 31, 2024. The increase in cost of revenue was primarily driven by a $3.2 million increase in the cost of disposable medical equipment supplies and equipment reconditioning, which were directly attributable to an increase in the number of patients using our product, a $1.0 million increase in depreciation expense due to an increased number of systems and equipment in use, a $0.3 million increase in reserve for lost or damaged equipment, and a $0.4 million increase in other costs, partially offset by a $0.7 million decrease in depreciation expense from increased useful lives of our components.

Current wording

Cost of revenue for the three months ended January 31, 2026 increased by $3.1 million, or 36%, compared to the three months ended January 31, 2025. The increase in cost of revenue was primarily driven by a $1.9 million increase in the cost of disposable medical equipment supplies and equipment reconditioning, attributable to the increase in the number of patients using our product, a $0.9 million increase in depreciation expense due to an increased number of systems and equipment in use, a $0.5 million increase in reserve for lost or damaged equipment, and a $0.5 million increase in other costs, partially offset by a $0.7 million decrease in depreciation expense from increased useful lives of our components.

Previous wording

Cost of revenue for the three months ended October 31, 2025 increased by $2.3 million, or 25%, compared to the three months ended October 31, 2024. The increase in cost of revenue was primarily driven by a $1.4 million increase in the cost of disposable medical equipment supplies and equipment reconditioning, which were directly attributable to an increase in the number of patients using our product, a $0.9 million increase in depreciation expense due to an increased number of systems and equipment in use, and a $0.3 million increase in other costs, partially offset by a $0.4 million decrease in depreciation expense from increased useful lives of our components.

Current wording

Cost of revenue for the nine months ended January 31, 2026 increased by $7.3 million, or 28%, compared to the nine months ended January 31, 2025. The increase in cost of revenue was primarily driven by a $5.2 million increase in the cost of disposable medical equipment supplies and equipment reconditioning, attributable to the increase in the number of patients using our product, a $1.3 million increase in depreciation expense due to an increased number of systems and equipment in use, a $0.8 million increase in reserve for lost or damaged equipment, and a $1.0 million increase in other costs, partially offset by a $0.9 million decrease in depreciation expense from increased useful lives of our components.

Previous wording

Gross profit for the three months ended October 31, 2025 increased by $5.6 million, or 96%, compared to the three months ended October 31, 2024. The increase in gross profit was primarily due to growth in our total revenue. The increase in gross profit was also driven by a decrease in cost of revenues per patient by 20% for the three months ended October 31, 2025 compared to the three months ended October 31, 2024, due to further improvements in the utilization of our rental pool of medical equipment and lower disposable costs driven by volume and implementation of manufacturing cost improvement programs, and longer useful lives of our medical rental equipment components.

Current wording

Gross profit for the three months ended January 31, 2026 increased by $6.4 million, or 97%, compared to the three months ended January 31, 2025. The increase in gross profit was primarily due to growth in our total revenue. The increase in gross profit was also driven by a decrease in cost of revenues per patient by 14% for the three months ended January 31, 2026 compared to the three months ended January 31, 2025, due to further improvements in the utilization of our rental pool of medical equipment and lower disposable costs driven by volume and implementation of manufacturing cost improvement programs, and longer useful lives of our medical rental equipment components.

Previous wording

Gross profit for the six months ended October 31, 2025 increased by $10.2 million, or 102%, compared to the six months ended October 31, 2024. The increase in gross profit was primarily due to growth in our total revenue. The increase in gross profit was also driven by a decrease in cost of revenues per patient by 20% for the six months ended October 31, 2025 compared to the six months ended October 31, 2024, due to further improvements in the utilization of our rental pool of medical equipment and lower disposable costs driven by volume and implementation of manufacturing cost improvement programs, and longer useful lives of our medical rental equipment components.

Current wording

Gross profit for the nine months ended January 31, 2026 increased by $16.6 million, or 100%, compared to the nine months ended January 31, 2025. The increase in gross profit was primarily due to growth in our total revenue. The increase in gross profit was also driven by a decrease in cost of revenues per patient by 17% for the nine months ended January 31, 2026 compared to the nine months ended January 31, 2025, due to further improvements in the utilization of our rental pool of medical equipment and lower disposable costs driven by volume and implementation of manufacturing cost improvement programs, and longer useful lives of our medical rental equipment components.

Previous wording

Research and development costs for the three months ended October 31, 2025 increased by $1.4 million, or 39%, compared to the three months ended October 31, 2024. The increase was primarily driven by a $1.1 million increase in share-based compensation expense and a $0.2 million increase in contractor costs.

Current wording

Research and development costs for the three months ended January 31, 2026 increased by $1.6 million, or 48%, compared to the three months ended January 31, 2025. The increase was primarily driven by a $1.3 million increase in share-based compensation expense and a $0.3 million increase in contractor costs.

Previous wording

Research and development costs for the six months ended October 31, 2025 increased by $2.0 million, or 28%, compared to the six months ended October 31, 2024. The increase was primarily driven by a $1.5 million increase in share-based compensation expense and a $0.4 million increase in contractor costs.

Current wording

Research and development costs for the nine months ended January 31, 2026 increased by $3.6 million, or 35%, compared to the nine months ended January 31, 2025. The increase was primarily driven by a $2.8 million increase in personnel expenses such as salaries, benefits and share-based compensation expense, and a $0.7 million increase in contractor costs.

Previous wording

Selling, general and administrative expenses for the three months ended October 31, 2025 increased by $16.8 million, or 79%, compared to the three months ended October 31, 2024. The increase was primarily driven by a $12.0 million increase in personnel expenses such as salaries, benefits and share-based compensation, resulting from an increase in headcount to support commercial growth, a $1.6 million increase in legal, accounting, professional service fees, and insurance related to our transition to a public company, a $0.9 million increase in commercial support costs including contractors and external recruitment costs, a $0.8 million increase in travel and entertainment expenses due to an increase in headcount, a $0.5 million increase related to shipping and logistics costs, a $0.4 million increase related to conference fees, a $0.3 million increase related to increased software licensing fees driven by increased headcount, and a $0.2 million increase in other training costs.

Current wording

Selling, general and administrative expenses for the three months ended January 31, 2026 increased by $18.9 million, or 79%, compared to the three months ended January 31, 2025. The increase was primarily driven by a $15.3 million increase in personnel expenses such as salaries, benefits and share-based compensation, resulting from an increase in headcount to support commercial growth, a $0.9 million increase in travel and entertainment expenses due to an increase in headcount, a $0.8 million increase in commercial support costs including contractors and external recruitment costs, a $0.6 million increase related to shipping and logistics costs, a $0.5 million increase related to increased software licensing fees driven by increased headcount, a $0.4 million increase related to conference fees, a $0.3 million increase in commercial training costs, and a $0.2 million increase in other costs.

Previous wording

Selling, general and administrative expenses for the six months ended October 31, 2025 increased by $31.3 million, or 77%, compared to the six months ended October 31, 2024. The increase was primarily driven by a $21.2 million increase in personnel expenses such as salaries, benefits and share-based compensation, resulting from an increase in headcount to support commercial growth, a $3.1 million increase in legal, accounting, professional service fees, and insurance related to our transition to a public company, a $1.7 million increase in commercial support costs including contractors and external recruitment costs, a $1.5 million increase in travel and entertainment expenses due to an increase in headcount, a $1.2 million increase in commercial training costs, a $0.9 million increase related to shipping and logistics costs, a $0.7 million increase related to increased software licensing fees driven by increased headcount, and a $0.5 million increase related to conference fees.

Current wording

Selling, general and administrative expenses for the nine months ended January 31, 2026 increased by $50.3 million, or 78%, compared to the nine months ended January 31, 2025. The increase was primarily driven by a $36.6 million increase in personnel expenses such as salaries, benefits and share-based compensation, resulting from an increase in headcount to support commercial growth, a $3.2 million increase in legal, accounting, professional service fees, and insurance related to our transition to a public company, a $2.4 million increase in travel and entertainment expenses due to an increase in headcount, a $2.1 million increase in commercial support costs including contractors and external recruitment costs, a $1.7 million increase in commercial training costs, a $1.5 million increase related to shipping and logistics costs, a $1.4 million increase related to increased software licensing fees driven by increased headcount, a $0.8 million increase related to conference fees, and $0.5 million increase in other costs.

Previous wording

Interest expense for the three months ended October 31, 2025 decreased by $0.4 million compared to the three months ended October 31, 2024. The decrease was primarily driven by a decrease in debt discount amortization.

Current wording

Interest expense for the three months ended January 31, 2026 increased by $0.1 million compared to the three months ended January 31, 2025.

Previous wording

Interest expense for the six months ended October 31, 2025 decreased by $0.4 million compared to the six months ended October 31, 2024. The decrease was primarily driven by a decrease in debt discount amortization.

Current wording

Interest expense for the nine months ended January 31, 2026 decreased by $0.3 million compared to the nine months ended January 31, 2025.

Previous wording

Interest income for the three months ended October 31, 2025 increased by $0.9 million compared to the three months ended October 31, 2024. The increase was due to interest income received from various interest-bearing bank accounts as a result of higher account balances.

Current wording

Interest income for the three months ended January 31, 2026 increased by $1.5 million compared to the three months ended January 31, 2025. The increase was primarily due to interest income received from various interest-bearing bank accounts as a result of higher account balances.

Previous wording

Interest income for the six months ended October 31, 2025 increased by $3.0 million compared to the six months ended October 31, 2024. The increase was due to interest income received from various interest-bearing bank accounts as a result of higher account balances.

Current wording

Interest income for the nine months ended January 31, 2026 increased by $4.6 million compared to the nine months ended January 31, 2025. The increase was primarily due to interest income received from various interest-bearing bank accounts as a result of higher account balances.

Previous wording

Other expense (income) for the three months ended October 31, 2025 increased by $0.9 million compared to the three months ended October 31, 2024. The increase was primarily due to an increase in the fair value of the warrant liability.

Current wording

Other expense (income) for the three months ended January 31, 2026 increased by $0.3 million compared to the three months ended January 31, 2025. The increase was primarily due to an increase in the fair value of the warrant liability.

Previous wording

Other expense (income) for the six months ended October 31, 2025 decreased by $2.0 million compared to the six months ended October 31, 2024. The decrease was primarily due to the addition of the warrant liability.

Current wording

Other expense (income) for the nine months ended January 31, 2026 increased by $2.4 million compared to the nine months ended January 31, 2025. The increase was primarily due to the addition of the warrant liability.

Previous wording

For each of the three and six months ended October 31, 2025 and 2024, the tax provision was less than $0.1 million, which was primarily related to state tax liabilities in the United States.

Current wording

For each of the three and nine months ended January 31, 2026 and 2025, the tax provision was less than $0.1 million, which was primarily related to state tax liabilities in the United States.

Previous wording

Since inception, we have devoted substantially all our efforts to research and development, undertaking clinical trials, enabling manufacturing activities in support of our product development efforts, hiring personnel, organizing and staffing our company, performing business planning, establishing our intellectual property portfolio, building and expanding a commercial team to market our Cardiac Recovery System platform in the United States, and raising capital to support and expand such activities. We have incurred net losses in each year since inception and expect to continue to incur net losses in the foreseeable future. Our net loss and comprehensive loss were $32.8 million and $20.6 million for the three months ended October 31, 2025 and 2024, respectively. Our net loss and comprehensive loss were $58.6 million and $40.9 million for the six months ended October 31, 2025 and 2024, respectively. As of October 31, 2025, we had an accumulated deficit of $578.9 million. For the six months ended October 31, 2025 and 2024, we generated negative operating cash flows of $44.6 million and $35.6 million, respectively.

Current wording

Since inception, we have devoted substantially all our efforts to research and development, undertaking clinical trials, enabling manufacturing activities in support of our product development efforts, hiring personnel, organizing and staffing our company, performing business planning, establishing our intellectual property portfolio, building and expanding a commercial team to market our Cardiac Recovery System platform in the United States, and raising capital to support and expand such activities. We have incurred net losses in each year since inception and expect to continue to incur net losses in the foreseeable future. Our net loss and comprehensive loss were $34.2 million and $21.8 million for the three months ended January 31, 2026 and 2025, respectively. Our net loss and comprehensive loss were $92.8 million and $62.7 million for the nine months ended January 31, 2026 and 2025, respectively. As of January 31, 2026, we had an accumulated deficit of $613.0 million. For the nine months ended January 31, 2026 and 2025, we generated negative operating cash flows of $63.0 million and $53.6 million, respectively.

Previous wording

As of October 31, 2025 and April 30, 2025, our principal sources of liquidity consisted of $175.4 million and $237.6 million of cash and cash equivalents, respectively. Based on our current operating plan, we believe that our existing cash and cash equivalents, which includes the net proceeds from our IPO, as well as cash generated from revenue transactions with customers, will be sufficient to fund our operating and capital needs for at least the next 12 months.

Current wording

As of January 31, 2026 and April 30, 2025, our principal sources of liquidity consisted of $291.3 million and $237.6 million of cash and cash equivalents, respectively. Based on our current operating plan, we believe that our existing cash and cash equivalents, which includes the net proceeds from our IPO, as well as cash generated from revenue transactions with customers, will be sufficient to fund our operating and capital needs for at least the next 12 months.

Previous wording

On December 4, 2025, the Company completed a public underwritten offering and issued an aggregate of 6,900,000 common shares at a price of $23.00 per share, resulting in net proceeds to the Company of $149.2 million, after deducting underwriting discounts but before expenses paid by the Company. The aggregate number of common shares offered pursuant to the public offering included 900,000 common shares issued pursuant to the exercise in full of the underwriters’ option to purchase additional shares. The common shares were sold pursuant to an Underwriting Agreement, dated December 2, 2025, between the Company and BofA Securities, Inc., Piper Sandler & Co., J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC as representatives of the underwriters named therein.

Current wording

On December 4, 2025, the Company completed a public underwritten offering and issued an aggregate of 6,900,000 Common Shares at a price of $23.00 per share, resulting in net proceeds to the Company of $149.3 million, after deducting underwriting discounts but before expenses paid by the Company. The aggregate number of Common Shares offered pursuant to the public offering included 900,000 Common Shares issued pursuant to the exercise in full of the underwriters’ option to purchase additional shares. The Common Shares were sold pursuant to an Underwriting Agreement, dated December 2, 2025, between the Company and BofA Securities, Inc., Piper Sandler & Co., J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC as representatives of the underwriters named therein.

Previous wording

Our future obligations primarily consist of our debt obligations. From our inception to the consummation of the IPO, our operations were primarily funded by proceeds from our capital contributions made by West Affum Holdings, L.P., our direct parent prior to the Organizational Transactions, borrowings under our Term Loan 2024 and our revenues. We expect our cash generation from operations and future ability to refinance or secure additional equity or financing to be sufficient to repay our outstanding debt obligations. As of October 31, 2025, the outstanding principal amount under the Term Loan 2024 was approximately $45.0 million. For further information, see Note 7, “Long-Term Debt,” to our unaudited interim condensed consolidated financial statements included elsewhere in this Quarterly Report.

Current wording

Our future obligations primarily consist of our debt obligations. From our inception to the consummation of the IPO, our operations were primarily funded by proceeds from our capital contributions made by West Affum Holdings, L.P., our direct parent prior to the Organizational Transactions, borrowings under our Term Loan 2024 and our revenues. We expect the proceeds from our IPO and secondary offering, cash generation from operations, and future ability to refinance or secure additional equity or financing to be sufficient to repay our outstanding debt obligations. As of January 31, 2026, the outstanding principal amount under the Term Loan 2024 was approximately $45.0 million. For further information, see Note 7, “Long-Term Debt,” to our unaudited interim condensed consolidated financial statements included elsewhere in this Quarterly Report.

Previous wording

As of October 31, 2025, we had cash and cash equivalents and restricted cash balances of $175.4 million and an accumulated deficit of $578.9 million.

Current wording

As of January 31, 2026, we had cash and cash equivalents and restricted cash balances of $291.3 million and an accumulated deficit of $613.0 million.

Previous wording

On December 4, 2025, the Company completed a public underwritten offering and issued an aggregate of 6,900,000 common shares at a price of $23.00 per share, resulting in net proceeds to the Company of $149.2 million, after deducting underwriting discounts but before expenses paid by the Company. The aggregate number of common shares offered pursuant to the public offering included 900,000 common shares issued pursuant to the exercise in full of the underwriters’ option to purchase additional shares. The common shares were sold pursuant to an Underwriting Agreement, dated December 2, 2025, between the Company and BofA Securities, Inc., Piper Sandler & Co., J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC as representatives of the underwriters named therein.

Current wording

On December 4, 2025, the Company completed a public underwritten offering and issued an aggregate of 6,900,000 Common Shares at a price of $23.00 per share, resulting in net proceeds to the Company of $149.3 million, after deducting underwriting discounts but before expenses paid by the Company. The aggregate number of Common Shares offered pursuant to the public offering included 900,000 Common Shares issued pursuant to the exercise in full of the underwriters’ option to purchase additional shares. The Common Shares were sold pursuant to an Underwriting Agreement, dated December 2, 2025, between the Company and BofA Securities, Inc., Piper Sandler & Co., J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC as representatives of the underwriters named therein.

Previous wording

For the six months ended October 31, 2025, cash used in operating activities was $44.6 million, which primarily consisted of a net loss of $58.6 million and a net decrease of $5.3 million in operating assets and liabilities, offset by $19.3 million in net non-cash charges. The net change in our operating assets and liabilities consisted of changes in account receivables of $3.5 million, accounts payable of $2.4 million, disposable medical equipment supplies of $0.6 million, and operating lease liabilities of $0.3 million, partially offset by prepaid expenses and other current assets of $1.0 million and accrued liabilities of $0.5 million. The non-cash charges primarily consisted of share-based compensation expense of $13.2 million, depreciation and amortization of $4.4 million, provision for uncollectible accounts receivable of $1.2 million, amortization of debt discounts and issuance costs of $0.9 million, reserve for lost equipment and supplies of $0.9 million, loss on disposal of property and equipment of $0.6 million, and non-cash lease expense of $0.1 million, partially offset by change in fair value of warrant liability of $2.1 million.

Current wording

For the nine months ended January 31, 2026, cash used in operating activities was $63.0 million, which primarily consisted of a net loss of $92.8 million and a net decrease of $3.1 million in operating assets and liabilities, offset by $32.9 million in net non-cash charges. The net change in our operating assets and liabilities consisted of changes in account receivables of $6.1 million, accounts payable of $0.6 million, disposable medical equipment supplies of $0.5 million, and operating lease liabilities of $0.5 million, partially offset by accrued liabilities of $4.2 million and prepaid expenses and other current assets of $0.4 million. The non-cash charges primarily consisted of share-based compensation expense of $23.3 million, depreciation and amortization of $6.4 million, reserve for lost equipment and supplies of $1.6 million. provision for uncollectible accounts receivable of $1.5 million, amortization of debt discounts and issuance costs of $1.4 million, loss on disposal of property and equipment of $0.7 million, and non-cash lease expense of $0.3 million, partially offset by change in fair value of warrant liability of $2.3 million.

Previous wording

For the six months ended October 31, 2024, cash used in operating activities was $35.6 million, which primarily consisted of a net loss of $40.9 million and a net decrease of $4.1 million in operating assets and liabilities, offset by a net increase of $9.4 million in non-cash charges. The net change in our operating assets and liabilities was primarily due to changes in accounts receivable of $4.5 million, disposable medical equipment supplies of $1.1 million, accounts payable of $0.3 million, and prepaid expenses and other current assets of $0.1 million, partially offset by changes in accrued liabilities of $1.8 million, and operating lease liabilities of $0.1 million. The non-cash charges primarily consisted of depreciation and amortization expense of $4.2 million, share-based compensation expense of $1.5 million, provision for uncollectible accounts receivable of $1.1 million, amortization of debt discounts and issuance costs of $0.9 million, loss on disposal of property and equipment of $0.6 million, reserve for lost equipment and supplies of $0.5 million, interest paid-in-kind of $0.5 million related to the Term Loan 2024, and non-cash lease expense of $0.2 million .

Current wording

For the nine months ended January 31, 2025, cash used in operating activities was $53.6 million, which primarily consisted of a net loss of $62.7 million and a net decrease of $4.4 million in operating assets and liabilities, offset by $13.6 million in net non-cash charges. The net change in our operating assets and liabilities was primarily due to changes in accounts receivable of $7.8 million, disposable medical equipment supplies of $2.8 million, and prepaid expenses and other current assets of $0.4 million, partially offset by changes in accounts payable of $3.7 million, accrued liabilities of $2.7 million, operating lease liabilities of $0.2 million. The non-cash charges primarily consisted of depreciation and amortization expense of $6.1 million, share-based compensation expense of $2.0 million, provision for uncollectible accounts receivable of $1.9 million, amortization of debt discounts and issuance costs of $1.0 million, loss on disposal of property and equipment of $0.9 million, reserve for lost equipment and supplies of $0.6 million, interest paid-in-kind of $0.7 million related to the Term Loan 2024, and non-cash lease expense of $0.3 million .

Previous wording

For the six months ended October 31, 2025, cash used in investing activities was $15.7 million, which primarily consisted of $15.4 million of purchases of property and equipment such as medical rental equipment, computer hardware, test equipment and other research and development activities, and leasehold improvements, and $0.3 million of deposits paid for medical rental equipment.

Current wording

For the nine months ended January 31, 2026, cash used in investing activities was $30.6 million, which primarily consisted of $25.2 million of purchases of property and equipment such as medical rental equipment, computer hardware, test equipment and other research and development activities, and leasehold improvements, $5.0 million in the purchase of an equity security, and $0.3 million of deposits paid for medical rental equipment.

Previous wording

For the six months ended October 31, 2024, cash used in investing activities was $11.5 million, which primarily consisted of purchases of property and equipment such as medical rental equipment, computer hardware, test equipment and other research and development activities, and leasehold improvements.

Current wording

For the nine months ended January 31, 2025, cash used in investing activities was $15.9 million, which primarily consisted of purchases of property and equipment such as medical rental equipment, computer hardware, test equipment and other research and development activities, and leasehold improvements.

Previous wording

For the six months ended October 31, 2025, cash used in financing activities was $1.9 million, which primarily consisted of payments of equity offering costs.

Current wording

For the nine months ended January 31, 2026, cash provided by financing activities was $147.3 million, which primarily consisted of proceeds of $149.3 million from the secondary offering offset by $2.0 million of payments of equity offering costs.

Previous wording

For the six months ended October 31, 2024, cash provided by financing activities was $115.7 million, which primarily consisted of proceeds from the issuance of redeemable preferred stock of $103.4 million and $17.1 million in proceeds from issuance of stock to non-controlling interests. The increase in cash provided by financing activities was offset by equity issuance costs of $3.2 million and deemed dividend payments of $1.6 million.

Current wording

For the nine months ended January 31, 2025, cash provided by financing activities was $115.6 million, which primarily consisted of proceeds from the issuance of redeemable preferred stock of $103.4 million and $17.1 million in proceeds from issuance of stock to non-controlling interests. The increase in cash provided by financing activities was offset by equity issuance costs of $3.2 million and deemed dividend payments of $1.6 million.