electroCore, Inc.
For the period ended Sep 30, 2026. Filed Nov 4, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 4, 2026
ECOR$7.25-17.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001493152-26-036348
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-04.
0001493152-26-049961
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 80 previous paragraphs and 85 current paragraphs.
47 unchanged; 25 reworded; 12 added; 7 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 7 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
Historically, we have earned a significant amount of our revenue in the United States from the VA pursuant to our qualifying contract under the Federal Supply Schedule, or FSS, and open market sales to individual VA facilities. In August 2023, we signed a non-exclusive distribution agreement with Lovell Government Services, or Lovell, providing Lovell the right to list and distribute certain gammaCore devices, and more recently Quell Fibromyalgia devices, into the federal market. Lovell is a Service-Disabled Veteran-Owned Small Business (SDVOSB) offering medical and pharmaceutical goods and services to federal healthcare providers through its qualifying FSS, GSA Advantage (GSA), the VA Distribution and Pricing Agreement (DAPA), and Defense Logistics Agency’s ECAT system procurement portals through the Lovell contract vehicles (ECAT). Listing products with Lovell is intended to streamline the sales process to a variety of government procurement channels through Lovell’s compliance with contracting regulations and its provision of logistical solutions connected directly into government contracting portals, all of which are intended to help government agencies meet their SDVOSB procurement goals.
Current report
We have gradually shifted our direct sales to the VA from our FSS contract to sales through the distribution agreement with Lovell, and beginning in August 2026, we implemented a change to transition all prescription product sales to the VA and Department of Defense through the Lovell distribution agreement. Lovell comprised 62.6% and 51.6% of our net sales during the three and nine months ended September 30, 2026, respectively. Our FSS contract remains in effect expiring on June 14, 2030.
Current report
FDA Updates
Current report
In October 2026, following a meeting with the FDA at which the FDA recommended that the Company submit a 510(k) premarket notification rather than the De Novo classification request the FDA had previously recommended, the Company submitted a 510(k) premarket notification to the FDA seeking clearance of Quell for the treatment of chronic chemotherapy-induced peripheral neuropathy (“CIPN”). In January 2022, prior to the Company’s acquisition of NURO, the FDA granted Breakthrough Device Designation to Quell for the reduction of moderate to severe symptoms of CIPN that have persisted for at least six months after the completion of chemotherapy. Breakthrough Device Designation is intended to provide for more interactive communication with the FDA during development and review, but it does not change the standard for 510(k) clearance and does not assure that the submission will be cleared. The FDA may request additional information during its review, which could delay or prevent clearance. If cleared by the FDA, Quell could be marketed for the treatment of CIPN; however, there can be no assurance that the FDA will clear the submission on a timely basis or at all.
Current report
Net sales by channel for the three months ended September 30, 2026 and 2025 are presented in Note 4, “Revenue,” to the condensed consolidated financial statements included in this Quarterly Report.
Current report
Research and development expense of $0.4 million for the three months ended September 30, 2026, decreased by $0.2 million compared to the prior year. This decrease was primarily due to timing of open positions, professional fees and development costs.
Current report
Other income was $0.1 million for the three months ended September 30, 2026 compared to other expense of $0.5 million for the three months ended September 30, 2025. Other income for the three months ended September 30, 2026 included a gain of approximately $0.4 million related to the settlement of claims for indemnification. See “Note 10. Shareholders’ Equity –Settlement of Claims for Indemnification” for additional information regarding the settlement. Other expense for the three months ended September 30, 2025 included approximately $0.4 million of non-recurring acquisition expenses.
Current report
During the three months ended September 30, 2026, benefit from income taxes consisted of a favorable adjustment of $126,000 to our U.K. tax provision following a change in our transfer pricing policy.
Current report
Comparison of the nine months ended September 30, 2026 and September 30, 2025
Current report
Net sales by channel for the nine months ended September 30, 2026 and 2025 are presented in Note 4, “Revenue,” to the condensed consolidated financial statements included in this Quarterly Report.
Current report
Other expense was $0.5 million for the nine months ended September 30, 2026, a decrease of $0.3 million as compared to the nine months ended September 30, 2025. Other expense for the nine months ended September 30, 2026 was partially offset by a gain of approximately $0.4 million related to the settlement of claims for indemnification. See “Note 10. Shareholders’ Equity –Settlement of Claims for Indemnification” for additional information regarding the settlement. Other expense for the nine months ended September 30, 2025 of approximately $0.7 million consisted primarily of non-recurring acquisition expenses.
Current report
Benefit from Income Taxes
Removed paragraphs (7)
Previous report
The United States Department of Veteran Affairs comprised 75.8% and 75.3% of our revenue during the three and six months ended June 30, 2026, respectively. Our prescription gammaCore and Quell Fibromyalgia devices are also made available to the government channel through our relationship with Lovell and its qualifying FSS, GSA Advantage (GSA), the VA Distribution and Pricing Agreement (DAPA), and Defense Logistics Agency’s ECAT system procurement portals through the Lovell contract vehicles (ECAT). The majority of our second quarter 2026 sales were made pursuant to our qualifying Federal Supply Schedule, or FSS, contract which has an expiry date of June 14, 2030, as well as open market sales to individual facilities within the government channels, and our relationship with Lovell. During the remainder of 2026, we intend to generate the majority of our sales in the VA channel through our agreement with Lovell.
Previous report
FDA Update
Previous report
The following table sets forth our net sales by channel:
Previous report
Other (income) expense was $0.3 million for the three months ended June 30, 2026, an increase of $0.1 million as compared to the three months ended June 30, 2025. The increase was primarily attributable to interest associated with the convertible term debt financing with Avenue. Other expense for the three months ended June 30, 2025 of approximately $0.2 million consisted primarily of non-recurring acquisition expenses.
Previous report
Comparison of the six months ended June 30, 2026 and June 30, 2025
Previous report
The following table sets forth our net sales by channel:
Previous report
Other (income) expense was $0.6 million for the six months ended June 30, 2026, an increase of $0.3 million as compared to the six months ended June 30, 2025. The increase was primarily attributable to interest associated with the convertible term debt financing with Avenue. Other expense for the six months ended June 30, 2025 of approximately $0.2 million consisted primarily of non-recurring acquisition expenses.
Reworded paragraphs (25)
Previous wording
Additionally, we may choose to relaunch our FDA cleared Quell 2.0 product for lower extremity pain in the direct-to-consumer business channel in the future.
Current wording
Additionally, we may choose to relaunch our FDA cleared Quell Over-the-Counter (“Quell OTC”) product for lower extremity pain in the direct-to-consumer business channel in the future.
Previous wording
Our two largest customers by revenue are the United States Department of Veterans Affairs, or VA, and the United Kingdom National Health Service, or NHS, both utilizing prescription products under qualifying agreements.
Current wording
Our two largest end customers by revenue are the United States Department of Veterans Affairs, or VA, and the United Kingdom National Health Service, or NHS, both utilizing prescription products under qualifying agreements.
Previous wording
Demand for prescription devices in the U.S. is driven by clinical data and our increased presence in the field. Our sales efforts are primarily in the government channel broadly, and specifically to our largest customer, the VA, pursuant to our FSS contract and/or through our relationship with Lovell and its qualifying FSS, GSA, DAPA, and ECAT contracts. Our sales force is comprised of an internal sales team and outside commission only sales agents and sub reps. In addition, we have a small team of dedicated resources seeking to accelerate adoption in managed care systems. Sales to the NHS in the United Kingdom made under the U.K. MedTech Funding Mandate, or MTFM, for cluster headache (CH) comprised 4.0% and 3.9% of our revenue during the three and six months ended June 30, 2026, respectively. We plan on continuing to use this program during the remainder of 2026, and potentially in years to come.
Current wording
Demand for prescription devices in the U.S. is driven by clinical data and our increased presence in the field. Our sales efforts are primarily in the government channel broadly, and specifically to our largest end-customer, the VA, through our relationship with Lovell and its qualifying FSS, GSA, DAPA, and ECAT contracts. Our sales force is comprised of an internal sales team and outside commission only sales agents and sub reps. In addition, we have a small team of dedicated resources seeking to accelerate adoption in managed care systems. Sales to the NHS in the United Kingdom made under the U.K. MedTech Funding Mandate, or MTFM, for cluster headache (CH) comprised 4.2% and 4.0% of our revenue during the three and nine months ended September 30, 2026, respectively. We plan on continuing to use this program during the remainder of 2026, and potentially in years to come.
Previous wording
Quell 2.0 is a wearable neuromodulation technology FDA cleared for Over the Counter (OTC) sales direct-to-consumer for chronic lower extremity pain. Quell 2.0 is no longer commercially available; however, replacement electrodes continue to be sold to existing Quell 2.0 customers. Although we may choose to relaunch the Quell 2.0 product in the direct-to-consumer business channel in the future, there can be no assurance that we will do so successfully, or at all.
Current wording
Quell OTC is a wearable neuromodulation technology FDA cleared for Over the Counter (OTC) sales direct-to-consumer for chronic lower extremity pain. Quell OTC is no longer commercially available; however, replacement electrodes continue to be sold to existing Quell OTC customers. Although we may choose to relaunch the Quell OTC product in the direct-to-consumer business channel in the future, there can be no assurance that we will do so successfully, or at all.
Previous wording
We face a variety of challenges and risks that we will need to address and manage as we pursue our strategies, including our ability to develop and retain an effective sales force, achieve market acceptance of our medical devices among clinicians, patients, and third-party payers, expand the use of our bioelectronic technology for additional therapeutic indications, and to develop our nascent wellness and human performance business including the continued commercialization of Truvaga Plus, our app-enabled device under the Truvaga brand, and the possible relaunch of our direct-to-consumer Quell 2.0.
Current wording
We face a variety of challenges and risks that we will need to address and manage as we pursue our strategies, including our ability to develop and retain an effective sales force, achieve market acceptance of our medical devices among clinicians, patients, and third-party payers, protect and enforce our intellectual property rights, expand the use of our bioelectronic technology for additional therapeutic indications, and to develop our nascent wellness and human performance business including the continued commercialization of Truvaga Plus, our app-enabled device under the Truvaga brand, and the possible relaunch of our direct-to-consumer Quell OTC.
Previous wording
As we seek to execute on our strategic plans, we are also managing an executive leadership transition following recent changes to our senior management. We believe the transition provides an opportunity to strengthen operational execution, bring additional experience and perspectives to our commercial and product strategies, and enhance organizational focus as we pursue our near- and long-term objectives. However, leadership transitions can introduce operational and strategic challenges, and new leadership may implement shifts in priorities, management style, or organizational structure. These changes could result in temporary inefficiencies, delays in decision-making, or periods of misalignment across departments as roles and processes evolve. In addition, uncertainty during a transition may affect employee morale and retention, including among key personnel, and there is a risk that institutional knowledge is lost during the leadership change, which could impact our ability to manage ongoing projects, maintain customer relationships, and achieve our strategic objectives. We intend to remain focused on continuity of execution and disciplined prioritization as we navigate this transition, while continuing to evaluate the opportunities and challenges that may affect our business, results of operations, and financial condition.
Current wording
As we seek to execute on our strategic plans, we are also managing an executive leadership transition following recent changes to our senior management. We believe the transition provides an opportunity to strengthen operational execution, bring additional experience and perspectives to our commercial and product strategies, and enhance organizational focus as we pursue our near- and long-term objectives. However, leadership transitions can introduce operational and strategic challenges, and new leadership may implement shifts in priorities, management style, or organizational structure. These changes could result in temporary inefficiencies, delays in decision-making, longer than anticipated timeframe for expected improvements in sales growth, or periods of misalignment across departments as roles and processes evolve. In addition, uncertainty during a transition may affect employee morale and retention, including among key personnel, and there is a risk that institutional knowledge is lost during the leadership change, which could impact our ability to manage ongoing projects, maintain customer relationships, and achieve our strategic objectives. We intend to remain focused on continuity of execution and disciplined prioritization as we navigate this transition, while continuing to evaluate the opportunities and challenges that may affect our business, results of operations, and financial condition.
Previous wording
On November 29, 2024, we entered into the Sales Agreement with Wainwright. Under the Sales Agreement, the Company may offer and sell shares of its common stock, par value $0.001 per share, from time to time having an aggregate offering price of up to $20 million (the “ATM Shares”) during the term of the Sales Agreement through Wainwright, acting as sales agent. The Company has filed a prospectus supplement relating to the offer and sale of the Shares pursuant to the Sales Agreement. The ATM Shares were registered under the Company’s previously filed and effective Registration Statement on Form S-3 (File No. 333-262223) (the “2022 Shelf Registration Statement”), which was initially filed with the Securities and Exchange Commission (the “SEC”) on January 18, 2022 and declared effective on January 25, 2022. As of the date hereof, the 2022 Shelf Registration Statement has expired, and any sales of ATM Shares will be made pursuant to the 2025 Shelf Registration Statement. The Company intends to use the net proceeds from any offering pursuant to the Sales Agreement to continue to fund sales and marketing, working capital and for other general corporate purposes.
Current wording
On November 29, 2024, we entered into the Sales Agreement with Wainwright. Under the Sales Agreement, the Company may offer and sell shares of its common stock, par value $0.001 per share, from time to time having an aggregate offering price of up to $20 million (the “ATM Shares”) during the term of the Sales Agreement through Wainwright, acting as sales agent. The Company has filed a prospectus supplement relating to the offer and sale of the ATM Shares pursuant to the Sales Agreement. The ATM Shares were registered under the Company’s previously filed and effective Registration Statement on Form S-3 (File No. 333-262223) (the “2022 Shelf Registration Statement”), which was initially filed with the Securities and Exchange Commission (the “SEC”) on January 18, 2022 and declared effective on January 25, 2022. As of the date hereof, the 2022 Shelf Registration Statement has expired, and any sales of ATM Shares will be made pursuant to the 2025 Shelf Registration Statement. The Company intends to use the net proceeds from any offering pursuant to the Sales Agreement to continue to fund sales and marketing, working capital and for other general corporate purposes.
Previous wording
For the three and six months ended June 30, 2026, the Company sold 494,601 shares of its common stock at a weighted average price of $8.17 per share, net of issuance costs for approximately $3.9 million in net proceeds, pursuant to the Sales Agreement. Subsequent to June 30, 2026, the Company sold 10,745 shares of its common stock at a weighted average price of $8.35 per share, net of issuance costs, for approximately $86,200 in net proceeds, pursuant to the Sales Agreement. No sales were made pursuant to the Sales Agreement during the three months ended March 31, 2026. As of July 31, 2026, the Company had approximately $15.7 million of ATM Shares remaining available for issuance under the Sales Agreement. Additionally, during the three and six months ended June 30, 2026, the Company received net proceeds of approximately $0.9 million and $1.1 million, respectively, from the exercise of warrants and options.
Current wording
During the three months ended September 30, 2026, the Company sold 10,745 shares of its common stock at a weighted average price of $8.35 per share, for approximately $82,000 in net proceeds after issuance costs, pursuant to the Sales Agreement, which sales were previously disclosed in Note 3 to our condensed consolidated financial statements in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. For the nine months ended September 30, 2026, the Company sold 505,346 shares of its common stock at a weighted average price of $8.17 per share, for approximately $4.0 million in net proceeds after $0.3 million of issuance costs, pursuant to the Sales Agreement.
Previous wording
On May 27, 2026, the FDA concluded its inspection and issued the Company a FDA Form 483 letter, citing four observations and two discussion points regarding the Company’s processes for addressing and documenting patient complaints. On June 15, 2026, the Company submitted a written response letter to the FDA describing four corrective action records initiated to address the observations and one discussion point, as well as one preventative action initiated to address the other discussion point. As of the filing of this Quarterly Report, the Company has not received any comments, follow-up questions, or other response from the FDA regarding the Company’s response letter.
Current wording
On May 27, 2026, the FDA concluded its inspection and issued the Company a FDA Form 483 letter, citing four observations and two discussion points regarding the Company’s processes for addressing and documenting patient complaints. On June 15, 2026, the Company submitted a written response letter to the FDA describing four corrective action records initiated to address the observations and one discussion point, as well as one preventative action initiated to address the other discussion point. On October 27, 2026, the FDA responded to our letter. It stated that no written response is required and limited its comments to one observation, relating to NURO’s medical device reporting procedures, which we are addressing through our corrective action plan. The FDA will verify our corrective actions at its next inspection.
Previous wording
Net sales for the three months ended June 30, 2026 increased 28% to $9.5 million as compared to the three months ended June 30, 2025. The increase of $2.1 million is primarily due to an increase in net sales of Quell Fibromyalgia products and prescription (Rx) gammaCore, which are sold to the VA through our United States – Rx channel, and revenue from the sales of our nonprescription general wellness Truvaga products. We acquired the Quell Fibromyalgia product from NURO in May 2025. We expect that the majority of 2026 fiscal year revenue will continue to come from sales of our Rx products to the VA.
Current wording
Net sales for the three months ended September 30, 2026 increased 12% to $9.7 million as compared to the three months ended September 30, 2025. The increase of $1.0 million is primarily due to an increase in net sales of Quell Fibromyalgia products and prescription (Rx) gammaCore, which are sold to the VA through our United States – Rx channel. We expect that the majority of 2026 fiscal year revenue will continue to come from sales of our Rx products to the VA.
Previous wording
Gross profit increased by $1.7 million to $8.2 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase in gross profit is primarily attributable to the increased net sales. Gross margin decreased to 86.5% for the three months ended June 30, 2026, compared to 87.3% for the three months ended June 30, 2025. The decrease in gross margin was primarily due to an increase in our inventory reserve.
Current wording
Gross profit increased by $1.1 million to $8.6 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025. The increase in gross profit is primarily attributable to the increased net sales. Gross margin increased to 88.5% for the three months ended September 30, 2026, compared to 86.0% for the three months ended September 30, 2025. The increase in gross margin was primarily due to a favorable product mix.
Previous wording
Selling, general and administrative expense was $10.1 million for the three months ended June 30, 2026 which increased by $0.7 million compared to the previous year. Sales and marketing increased $1.4 million from the prior year. The increase in sales and marketing was primarily driven by $0.9 million of variable selling expenses, which contributed to a $2.1 million increase in sales. General and administrative expense decreased $0.7 million from the prior year. The decrease was primarily attributable to $0.5 million in bad debt expense recorded in the three months ended June 30, 2025 (associated with a TAC-STIM receivable) that did not recur, as well as a reduction in professional fees in the three months ended June 30, 2026.
Current wording
Selling, general and administrative expense was $9.7 million for the three months ended September 30, 2026 which increased by $6,000 compared to the previous year. Sales and marketing increased $0.25 million from the prior year. The increase in sales and marketing was primarily driven by expenses that supported the $1.0 million increase in sales. General and administrative expense decreased $0.2 million from the prior year. The decrease was primarily due to a reduction in professional fees in the three months ended September 30, 2026.
Previous wording
The following table summarizes our results of operations for the six months ended June 30, 2026 and 2025 with the changes in those items in dollars.
Current wording
The following table summarizes our results of operations for the nine months ended September 30, 2026 and 2025 with the changes in those items in dollars:
Previous wording
Net sales for the six months ended June 30, 2026 increased 35% to $19.0 million as compared to the six months ended June 30, 2025. The increase of $5.0 million is primarily due to an increase in net sales of Rx gammaCore to the VA, sales of Quell Fibromyalgia products, which were acquired from NURO in May 2025 and are also sold to the VA, and revenue from the sales of our nonprescription general wellness Truvaga products. We expect that the majority of 2026 fiscal year revenue will continue to come from sales of our Rx products to the VA.
Current wording
Net sales for the nine months ended September 30, 2026 increased 26% to $28.7 million as compared to the nine months ended September 30, 2025. The increase of $5.9 million is primarily due to an increase in net sales of Rx gammaCore to the VA and, sales of Quell Fibromyalgia products, which were acquired from NURO in May 2025. We expect that the majority of 2026 fiscal year revenue will continue to come from sales of our Rx products to the VA.
Previous wording
Gross profit increased by $4.4 million to $16.5 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase in gross profit is primarily attributable to the increased net sales. Gross margin increased to 86.9% for the six months ended June 30, 2026 compared to 86.8% for the six months ended June 30, 2025.
Current wording
Gross profit increased by $5.5 million to $25.1 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. The increase in gross profit is primarily attributable to the increased net sales. Gross margin increased to 87.4% for the nine months ended September 30, 2026 compared to 86.1% for the nine months ended September 30, 2025. The increase in gross margin was primarily due to a favorable product mix.
Previous wording
Research and development expense of $1.6 million for the six months ended June 30, 2026, increased by $0.4 million compared to the prior year. This increase was primarily due to increased studies and grants, higher stock based compensation and initial costs to develop enhancements to our Truvaga mobile application.
Current wording
Research and development expense of $2.0 million for the nine months ended September 30, 2026, increased by $0.2 million compared to the prior year. This increase was primarily due to increased studies and grants, higher stock-based compensation and costs to develop enhancements to our Truvaga mobile application.
Previous wording
Selling, general and administrative expense was $23.1 million for the six months ended June 30, 2026 which increased by $4.7 million compared to the previous year. Sales and marketing increased $3.2 million from the prior year. The increase in sales and marketing was primarily driven by $2.5 million of variable selling expenses, which contributed to a $4.9 million increase in sales. General and administrative expense increased $1.5 million from the prior year. This increase was primarily driven by $1.2 million of severance and $0.5 million of stock compensation expense associated with the former CEO’s retirement, $0.3 million in legal fees associated with the senior management changes, and $0.4 million in legal fees associated with ongoing litigation, partially offset by $0.5 million bad debt expense recorded in the three months ended June 30, 2025 (associated with a TAC-STIM receivable) that did not recur.
Current wording
Selling, general and administrative expense was $32.8 million for the nine months ended September 30, 2026 which increased by $4.8 million compared to the previous year. Sales and marketing increased $3.5 million from the prior year. The increase in sales and marketing was primarily driven by $2.5 million of variable selling expenses, which contributed to a $5.9 million increase in sales. General and administrative expense increased $1.3 million from the prior year. This increase was primarily driven by $1.2 million of severance and $0.5 million of stock compensation expense associated with the former CEO’s retirement, $0.3 million in legal fees associated with the senior management changes, and $0.5 million in legal fees associated with ongoing litigation, partially offset by $0.5 million bad debt expense recorded in the nine months ended September 30, 2025 (associated with a TAC-STIM receivable) that did not recur.
Previous wording
The Company may be eligible, from time to time, to receive cash from the sale of our net operating losses under New Jersey’s Department of the Treasury - Division of Taxation NOL Transfer Program. During the six months ended June 30, 2026 and 2025, we received net cash payments of $321,000 and $48,000 from the sale of our New Jersey state net operating losses, respectively.
Current wording
The Company may be eligible, from time to time, to receive cash from the sale of our net operating losses under New Jersey’s Department of the Treasury - Division of Taxation NOL Transfer Program. During the nine months ended September 30, 2026 and 2025, benefit from income taxes primarily includes net cash payments of $321,000 and $48,000 received from the sale of our New Jersey state net operating losses, respectively. During the nine months ended September 30, 2026, benefit from income taxes also included a favorable adjustment of $126,000 to our U.K. tax provision following a change in our transfer pricing policy.
Previous wording
At June 30, 2026, our cash, cash equivalents, and marketable securities was $10.0 million compared to $11.6 million at December 31, 2025.
Current wording
At September 30, 2026, our cash, cash equivalents, and marketable securities was $7.5 million compared to $11.6 million at December 31, 2025.
Previous wording
Net cash used in operating activities was $6.5 million and $5.0 million for the six months ended June 30, 2026 and 2025, respectively. The increase of $1.5 million in operating cash used is primarily due to investments in higher inventory levels and the timing in payment of operating expenses.
Current wording
Net cash used in operating activities was $9.4 million and $6.6 million for the nine months ended September 30, 2026 and 2025, respectively. The increase of $2.8 million in operating cash used is primarily due to investments in higher inventory levels and the timing in payment of operating expenses.
Previous wording
Net cash provided by investing activities was $3.0 million and $4.7 million for the six months ended June 30, 2026 and 2025, respectively. During the six months ended June 30, 2026 and June 30, 2025, cash used in investing activities was related to the proceeds from the sale of marketable securities.
Current wording
Net cash provided by investing activities was $3.4 million and $3.4 million for the nine months ended September 30, 2026 and 2025, respectively. During the nine months ended September 30, 2026 and September 30, 2025, cash used in investing activities was related to the proceeds from the sale of marketable securities.
Previous wording
Net cash provided by financing activities for the six months ended June 30, 2026 was $5.0 million which was attributable to $3.9 million of net proceeds from the sale of ATM Shares pursuant to the Sales Agreement and the exercise of warrants and options in the amount of $0.8 million and $0.3 million, respectively. During the six months ended June 30, 2025, net cash provided by financing activities was $0.2 million which was attributable to sale of ATM Shares pursuant to the Sales Agreement.
Current wording
Net cash provided by financing activities for the nine months ended September 30, 2026 was $5.3 million which was attributable to $4.0 million of net proceeds from the sale of ATM Shares pursuant to the Sales Agreement and the exercise of warrants and options in the amount of $0.3 million and $1.0 million, respectively. During the nine months ended September 30, 2025, net cash provided by financing activities was $7.7 million primarily attributable to net proceeds from the convertible debt financing with Avenue.
Previous wording
We have experienced significant net losses, and we expect to continue to incur net losses for the near future as we work to increase market acceptance of our products. We have never been profitable and we have incurred net losses and negative cash used in operations in each year since our inception. We incurred net losses of $8.3 million and $7.5 million, and used cash in our operations of $6.5 million and $5.0 million for the six months ended June 30, 2026 and 2025, respectively.
Current wording
We have experienced significant net losses, and we expect to continue to incur net losses for the near future as we work to increase market acceptance of our products. We have never been profitable and we have incurred net losses and negative cash used in operations in each year since our inception. We incurred net losses of $9.7 million and $10.9 million, and used cash in our operations of $9.4 million and $6.6 million for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
The Company has historically funded its operations with the proceeds of equity and debt financings. As of June 30, 2026, the Company’s cash, cash equivalents and marketable securities totalled $10.0 million.
Current wording
The Company has historically funded its operations with the proceeds of equity and debt financings. As of September 30, 2026, the Company’s cash, cash equivalents and marketable securities totaled $7.5 million.
Previous wording
Principal repayments under the Loan and Security Agreement are scheduled for $2.5 million in 2027, $3.0 million in 2028 and $2.3 million in 2029 (inclusive of a final payment fee of 3.5% of the loan amount). SeeNote 9 – Long-Term Debt in the condensed consolidated financial statements for additional details of our current and long-term debt.
Current wording
Following the extension of the interest only period described in Note 9, principal repayments under the Loan and Security Agreement begin in September 2027 and are scheduled for $1.25 million in 2027, $3.75 million in 2028 and $2.92 million in 2029 (inclusive of a final payment fee of 3.5% of the Loan Amount). See Note 9, “Long-Term Debt” in the condensed consolidated financial statements for additional details of our current and long-term debt.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
As of September 30, 2026, the Company had approximately $15.7 million of ATM Shares remaining available for issuance under the Sales Agreement. Additionally, the Company received net proceeds of approximately $0.2 million from the exercise of options during the three months ended September 30, 2026, and approximately $1.3 million from the exercise of warrants and options during the nine months ended September 30, 2026.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Research and development expense of $0.8 million for the three months ended June 30, 2026, increased by $307,000 compared to the prior year. This increase was primarily due to increased studies and grants, higher stock-based compensation and initial costs to develop enhancements to our Truvaga mobile application.