CareView Communications Inc

Previous wording

On November 1, 2020, the sales-based contract model was added to the HealthTrust GPO Agreement which allows us to sell the proprietary hardware and license the software on an annualized basis. On December 1, 2021, the HealthTrust GPO Agreement was renewed for another 3-year term. We continue to work with HealthTrust and their members to expand contracts.

Current wording

On November 1, 2020, the sales-based contract model was added to the HealthTrust GPO Agreement which allows us to sell the proprietary hardware and license the software on an annualized basis. We continue to work with HealthTrust and their members to expand contracts.

Previous wording

Our contracts typically include multiple combinations of our products, software solutions, and related services with multiple payment options. Customers can continue to lease our equipment under our subscription model or can purchase our equipment upfront under our sales-based contract model with an auto-renewal at the end of each contract period. The new sales-based contract offers our customers the flexibility of capitalizing on their investment, which in turn, replenishes our cash reserves. For the years ended December 31, 2024, and 2023, the Company executed sales-based contracts in approximate aggregated amounts of $761,000 and $8,223,000, respectively.

Current wording

Our contracts typically include multiple combinations of our products, software solutions, and related services with multiple payment options. Customers can continue to lease our equipment under our subscription model or can purchase our equipment upfront under our sales-based contract model with an auto-renewal at the end of each contract period. The new sales-based contract offers our customers the flexibility of capitalizing on their investment, which in turn, replenishes our cash reserves. For the years ended December 31, 2025, and 2024, the Company executed sales-based contracts in approximate aggregated amounts of $2,533,000 and $761,000, respectively.

Previous wording

Operating expenses decreased by a net 16% because of the following items:

Current wording

Operating expenses decreased by a net 9% because of the following items:

Previous wording

Human resource related costs (including salaries and benefits and non-cash compensation) decreased approximately $316,000 due to layoffs ended September 30, 2025 as compared to the three months ending September 30 2024. Product deployment costs increased approximately $47,000 due to an increase in installation and training expenses. Professional and consulting costs increased approximately $13,000 due to use of independent contractors. Travel and entertainment costs decreased approximately $32,000 due to less corporate travel. For the comparable periods, other expenses decreased approximately $96,000, primarily as a result of renegotiating business insurance and rent along with management of advertising and marketing as well as patent maintenance.

Current wording

Human resource related costs (including salaries and benefits and non-cash compensation) decreased approximately $92,000 due to less employees for the quarter ended March 31, 2026 as compared to the three months ending March 31, 2025. Depreciation and amortization costs decreased by approximately $15,000 due to assets becoming fully depreciated and amortized. Product deployment costs decreased approximately $43,000 due to decrease in installation and training expenses. Professional and consulting costs decreased by approximately $98,000, primarily due to the cancellation of two 1099 contractor agreements. Travel and entertainment costs decreased approximately $1,000 due to less corporate travel. Other expenses increased by approximately $36,000, primarily due to R&D costs associated with the new Gen 6 software licenses and related research and development activities.

Previous wording

Other non-operating income and expense decreased by approximately $4,000, or 0.1%, for the three months ended September 30, 2025 in comparison to the same period in 2024 due to credit card cash back.

Current wording

Other non-operating income and expense increased by approximately $1,000, or 0.1%, for the three months ended March 31, 2026 in comparison to the same period in 2025 due to lower money market interest rate.

Previous wording

As a result of the factors above, our third quarter 2025 net loss of approximately $914,000, decreased approximately $556,000, or 37.8%, as compared to approximately $1,470,000 net loss for the third quarter of 2024.

Current wording

As a result of the factors above, our first quarter 2026 net loss of approximately $756,000, decreased approximately $165,000, or 18%, as compared to approximately $921,000 net loss for the first quarter of 2025.

Previous wording

The Company has experienced net losses and significant cash outflows from cash used in operating activities over the past years. As of and for the nine months ended September 30, 2025, the Company had an accumulated deficit of $215,009,822, net loss from operations of $68,406, net cash provided by operating activities of $1,033,269 and an ending cash balance of $1,731,276.

Current wording

The Company has experienced net losses and significant cash outflows from cash used in operating activities over the past years. As of and for the three months ended March 31, 2026, the Company had an accumulated deficit of $216,542,751, income from operations of $30,843, net cash used in operating activities of $126,166 and an ending cash balance of $1,411,435.

Previous wording

As of September 30, 2025, the Company had a working capital deficit of $42,789,653 consisting primarily of PDL notes payables, including accrued interest. Management has evaluated the significance of the conditions described above in relation to the Company’s ability to meet its obligations and concluded that, without additional funding, the Company will not have sufficient funds to meet its obligations within one year from the date the condensed consolidated financial statements were issued. While management will look to continue funding operations by increased sales volumes and raising additional capital from sources such as sales of its debt or equity securities or loans to meet operating cash requirements, there is no assurance that management’s plans will be successful. The Company’s net losses and working capital deficit raise substantial doubt about the Company’s ability to continue as a going concern through November 12, 2026.

Current wording

As of March 31, 2026, the Company had a working capital deficit of $44,037,450 consisting primarily of PDL notes payables, including accrued interest. Management has evaluated the significance of the conditions described above in relation to the Company’s ability to meet its obligations and concluded that, without additional funding, the Company will not have sufficient funds to meet its obligations within one year from the date the Condensed Consolidated Financial Statements were issued. While management will look to continue funding operations by increased sales volumes and raising additional capital from sources such as sales of its debt or equity securities or loans to meet operating cash requirements, there is no assurance that management’s plans will be successful. The Company’s net losses and working capital deficit raise substantial doubt about the Company’s ability to continue as a going concern through May 12, 2027.

Previous wording

Please refer to our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Commission on April 1, 2025 and incorporated herein by reference, for detailed explanation of our critical accounting estimates, which have not changed significantly during the three and nine months ended September 30, 2025.

Current wording

Please refer to our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Commission on March 30, 2026 and incorporated herein by reference, for detailed explanation of our critical accounting estimates, which have not changed significantly during the three months ended March 31, 2026.

Previous wording

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This update will improve the transparency and usefulness of income tax disclosures. Investors, lenders, and creditors have indicated that current disclosures do not provide enough detailed information to assess how a company's operations, tax risks, and planning affect its tax rate and future cash flows. The requirements take effect for public business entities for fiscal years beginning after December 15, 2024. The standard, which is effective for our 2025 annual period, has been adopted.

Current wording

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This update will improve the transparency and usefulness of income tax disclosures. Investors, lenders, and creditors have indicated that current disclosures do not provide enough detailed information to assess how a company's operations, tax risks, and planning affect its tax rate and future cash flows. The requirements take effect for public business entities for fiscal years beginning after December 15, 2024. The Company adopted this standard in its 2025 annual period on a prospective basis. The adoption enhances the Company’s income tax disclosures by increasing detail and transparency, but did not affect the Company’s financial position, results of operations, or cash flows.

Previous wording

In November 2024, the FASB issued ASU No. 2024-04, “Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments,” which clarifies the criteria for determining when a settlement of convertible debt should be accounted for as an induced conversion. The guidance applies only to conversions involving the full issuance of equity securities as originally specified in the debt terms and includes additional clarifications to aid in application. The amendments in this update are effective for all entities for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. The Company does not expect any impact on the unaudited Condensed Consolidated Financial Statements upon adoption, considering its current debt instruments.

Current wording

In November 2024, the FASB issued ASU No. 2024-04, “Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments,” which clarifies the criteria for determining when a settlement of convertible debt should be accounted for as an induced conversion. The guidance applies only to conversions involving the full issuance of equity securities as originally specified in the debt terms and includes additional clarifications to aid in application. The amendments in this update are effective for all entities for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. The Company adopted this standard on January 1, 2026. The adoption of this guidance did not have a material impact on the Company’s Condensed Consolidated Financial Statements, as the Company has no outstanding convertible debt instruments.

Previous wording

In July 2025, the FASB issued ASU 2025-05, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets," which amends how entities estimate expected credit losses for current accounts receivable and current contract assets arising from revenue contracts under ASC 606. A reduction in the need for extensive forecasting has been established and allows all entities to assume that conditions will persist at balance sheet date for the remaining life of those current assets. The amendments in this update are effective for all entities for annual reporting periods beginning after December 15, 2025. Management has assessed and concluded this amendment will not have any impact on the Company.

Current wording

In July 2025, the FASB issued ASU 2025-05, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets," which amends how entities estimate expected credit losses for current accounts receivable and current contract assets arising from revenue contracts under ASC 606. A reduction in the need for extensive forecasting has been established and allows all entities to assume that conditions will persist at balance sheet date for the remaining life of those current assets. The amendments in this update are effective for all entities for annual reporting periods beginning after December 15, 2025, and interim periods within those annual reporting periods. Upon adoption, the standard did not have a material impact on the Company's financial statements.

Previous wording

There was no impact on our unaudited Condensed Consolidated Financial Statements from recently adopted accounting standards.

Current wording

There was no impact on our Condensed Consolidated Financial Statements from recently adopted accounting standards.

Previous wording

Recently Issued Accounting Pronouncements Not Yet Adopted

Current wording

Recently Issued Accounting Pronouncements

Previous wording

In October 2023, the FASB issued ASU No. 2023-06, which incorporates 14 of the 27 SEC disclosures identified in SEC Release No. 33-10532 (issued August 17, 2018). This ASU updates disclosure and presentation requirements across various Codification Topics and applies to all entities within the scope of those Topics, unless specified otherwise. The amendments are to be applied prospectively. For public business entities, each amendment becomes effective when the related SEC disclosure is removed from Regulation S-X or S-K; early adoption is not permitted. The Company has evaluated ASU No. 2023-06 and does not expect it to impact its unaudited Condensed Consolidated Financial Statements.

Current wording

In October 2023, the FASB issued ASU No. 2023-06, which incorporates 14 of the 27 SEC disclosures identified in SEC Release No. 33-10532 (issued August 17, 2018). This ASU updates disclosure and presentation requirements across various Codification Topics and applies to all entities within the scope of those Topics, unless specified otherwise. The amendments are to be applied prospectively. For public business entities, each amendment becomes effective when the related SEC disclosure is removed from Regulation S-X or S-K; early adoption is not permitted. The Company has evaluated ASU No. 2023-06 and does not expect it to impact its Condensed Consolidated Financial Statements.