# EDGAR Filing Document

**Accession Number:** 0001838003
**File Stem:** 0001104659-25-089675
**Filing Date:** 2025-9
**Character Count:** 557042
**Document Hash:** d21881164a6f01e52c82323f15b774cc
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-089675.hdr.sgml**: 20250915

**ACCESSION NUMBER**: 0001104659-25-089675

**CONFORMED SUBMISSION TYPE**: S-1

**PUBLIC DOCUMENT COUNT**: 23

**FILED AS OF DATE**: 20250915

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Encore Medical, Inc.
- **CENTRAL INDEX KEY:** 0001838003

**ORGANIZATION NAME:**
- **EIN:** 822906303
- **STATE OF INCORPORATION:** MN
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-290244
- **FILM NUMBER:** 251312944

**BUSINESS ADDRESS:**
- **STREET 1:** 2975 LONE OAK DRIVE
- **CITY:** EAGAN
- **STATE:** MN
- **ZIP:** 55121
- **BUSINESS PHONE:** 651-797-0913

**MAIL ADDRESS:**
- **STREET 1:** 2975 LONE OAK DRIVE
- **CITY:** EAGAN
- **STATE:** MN
- **ZIP:** 55121

[**TABLE OF CONTENTS**](#TOC)

#### REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON SEPTEMBER 12, 2025

#### Registration No. 333-

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

### FORM S-1

#### REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

### ENCORE MEDICAL, INC.
(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Minnesota** <br> (State or other jurisdiction of <br> incorporation or organization)  | **3841** <br> (Primary Standard Industrial <br> Classification Code Number)  | **82-2906303** <br> (I.R.S. Employer <br> Identification Number)  |

---

#### 2975 Lone Oak Drive, Suite 140 Eagan, MN 55121 Telephone: (651) 797-0913
(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)

#### Joseph A. Marino President and Chief Executive Officer Encore Medical, Inc. 2975 Lone Oak Drive, Suite 140 Eagan, MN 55121 Telephone: (651) 797-0913
(Name, address, including zip code, and telephone number, including area code, of agent for service)

#### Copies to:

---

| | |
|:---|:---|
| **Amy Bowler <br> Holland & Hart LLP <br> 555 17<sup>th</sup> Street, Suite 3200 <br> Denver, CO 80202 <br> Telephone: (303) 295-8000**  | **William M. Mower <br> Andrew M. Tataryn <br> Maslon LLP <br> 225 South 6<sup>th</sup> Street, Suite 2900 <br> Minneapolis, MN 55402 <br> Telephone: (612) 672-8381**  |

---

#### APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC: AS SOON AS PRACTICABLE AFTER THE EFFECTIVE DATE OF THIS REGISTRATION STATEMENT.
If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ☐

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

 **The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.** 

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The information in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the Registration Statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell nor does it seek an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.

#### Subject to Completion, Dated September 12, 2025

#### PROSPECTUS

### Shares of Common Stock
![[MISSING IMAGE: lg_emi-4c.jpg]](lg_emi-4c.jpg)

![[MISSING IMAGE: lg_encoremedical-4c.jpg]](lg_encoremedical-4c.jpg)

This is the initial public offering of common stock of Encore Medical, Inc. We are selling shares of our common stock.

Prior to this offering, there has been no public market for our common stock. The initial public offering price for our common stock is expected to be $ to $ per share. We have applied for listing of our common stock on the NYSE American Market (NYSE American) under the symbol "EMI."

We are an "emerging growth company" and a "smaller reporting company" as each such term is defined under the federal securities laws and, as such, have elected to comply with certain reduced reporting requirements for this prospectus and may elect to do so in future filings. See "Prospectus Summary — Implications of Being an Emerging Growth Company and a Smaller Reporting Company."

 **Investing in our common stock involves a high degree of risk. Please read "Risk Factors" beginning on page [9](#tRIFA) of this prospectus for factors you should consider before investing.** 

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

---

| | | |
|:---|:---|:---|
| | **Per Share**  | **Total**  |
| Initial public offering price  |  | $— |
| Underwriting discounts and commissions<sup>(1)</sup>  |  | $— |
| Proceeds, before expenses, to Encore Medical, Inc.  |  | $— |

---

(1) We refer you to "Plan of Distribution" beginning on page [63](#tPOD) of this prospectus for additional information regarding underwriting compensation.

We have granted the underwriters a 45-day option to purchase up to additional shares of common stock from us at the initial public offering price per share, less underwriting discounts and commissions, to cover over-allotments, if any.

The underwriters expect to deliver the common stock to purchasers on or about [•], 2025.

### OAK RIDGE FINANCIAL Dawson James Securities, Inc.
The date of this prospectus is [•], 2025.

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#### **TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [CONVENTIONS AND ASSUMPTIONS USED IN THIS PROSPECTUS](#tCAAU)  | [ii](#tCAAU) |
| [INDUSTRY AND MARKET DATA](#tIAMD)  | [ii](#tIAMD) |
| [PROSPECTUS SUMMARY](#tPRSU)  | [1](#tPRSU) |
| [RISK FACTORS](#tRIFA)  | [9](#tRIFA) |
| [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#tCNRF)  | [22](#tCNRF) |
| [USE OF PROCEEDS](#tUOP)  | [24](#tUOP) |
| [DIVIDEND POLICY](#tDIPO)  | [25](#tDIPO) |
| [CAPITALIZATION](#tCAP)  | [26](#tCAP) |
| [SERIES A PREFERRED STOCK CONVERSION](#tSAPS)  | [27](#tSAPS) |
| [DILUTION](#tDIL)  | [28](#tDIL) |
|  [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#tMDAA)  | [30](#tMDAA) |
| [BUSINESS](#tBUS)  | [42](#tBUS) |
| [MANAGEMENT](#tMAN)  | [49](#tMAN) |
| [EXECUTIVE COMPENSATION](#tEXCO)  | [55](#tEXCO) |
| [PRINCIPAL SHAREHOLDERS](#tPRSH)  | [58](#tPRSH) |
| [DESCRIPTION OF SECURITIES](#tDOS)  | [59](#tDOS) |
| [SHARES ELIGIBLE FOR FUTURE SALE](#tSEFF)  | [61](#tSEFF) |
| [PLAN OF DISTRIBUTION](#tPOD)  | [63](#tPOD) |
|  [MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS FOR NON-U.S. HOLDERS OF COMMON STOCK](#tMUFI)  | [67](#tMUFI) |
| [LEGAL MATTERS](#tLEMA)  | [68](#tLEMA) |
| [EXPERTS](#tEXP)  | [69](#tEXP) |
| [WHERE YOU CAN FIND MORE INFORMATION](#tWYCF)  | [70](#tWYCF) |
| [Index to Financial Statements](#fITFS)  | [F-1](#fITFS) |

---

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Through and including [•], 2025 (the 25<sup>th</sup> day after the date of this prospectus), all dealers effecting transactions in our common stock, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to a dealer's obligation to deliver a prospectus when acting as an underwriter and with respect to an unsold allotment or subscription.

Neither we nor any of the underwriters have authorized anyone to provide any information or to make any representations other than those contained in this prospectus or in any related free writing prospectuses. Neither we nor any of the underwriters take responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. This prospectus is an offer to sell only the shares of common stock offered by this prospectus, but only under circumstances and in jurisdictions where it is lawful to do so. The information contained in this prospectus is current only as of its date, regardless of the time of delivery of this prospectus or any sale of shares. Our business, financial condition, results of operations, and prospectus may have changed since that date.

For investors outside of the United States: neither we nor the underwriters have done anything that would permit this offering or possession or distribution of this prospectus or any free writing prospectus we may provide to you in connection with this offering in any jurisdiction where action for that purpose is required, other than in the United States. You are required to inform yourself about, and observe any restrictions relating to, this offering of the shares of our common stock and the distribution of this prospectus and any such free writing prospectus outside of the United States. See "Plan of Distribution."

#### CONVENTIONS AND ASSUMPTIONS USED IN THIS PROSPECTUS
Throughout this prospectus, our fiscal years ended December 31, 2023, and 2024 are referred to as fiscal years 2023 and 2024, respectively. Our fiscal year consists of 52 weeks, commencing on January 1 and ending on December 31 of each year.

Unless we indicate otherwise, all information in this prospectus assumes the underwriters do not exercise their option to purchase up to 450,000 additional shares of our common stock within 45 days from the date of this prospectus to cover over-allotments.

#### INDUSTRY AND MARKET DATA
This prospectus includes market data and forecasts with respect to the medical device industry. We have obtained this market data and certain industry forecasts from various independent third-party sources, including industry publications, reports by market research firms, surveys, and other independent sources. Some data and information are based on management's estimates and calculations, which are derived from our review and interpretation of internal company research and data, surveys, and independent sources. We believe the data regarding the industry in which we compete and our market position and market share within this industry generally indicate size, position and market share within this industry; however, this data is inherently imprecise and is subject to significant business, economic and competitive uncertainties and risks due to a variety of factors, including those described in "Risk Factors." These and other factors could cause our future performance to differ materially from our assumptions and estimates. See "Cautionary Note Regarding Forward-Looking Statements."

ii

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#### PROSPECTUS SUMMARY
 *This summary highlights information contained elsewhere in this prospectus and does not contain all of the information that you should consider in making your investment decision. Before investing, you should carefully read this entire prospectus, including our financial statements and the related notes included elsewhere in this prospectus and the information presented under the headings "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our financial statements and the related notes included elsewhere in this prospectus. Some of the statements in this prospectus constitute forward-looking statements, see "Cautionary Note Regarding Forward-Looking Statements" for more information.* 

 *In this prospectus, the terms "Encore Medical," "Encore," the "Company," "we," "our," "ours" and "us" refer to Encore Medical, Inc.* 

#### The Company at a Glance
Encore Medical is a structural heart device company dedicated to the transcatheter closure of certain cardiac defects. The Company, though founded in 2017, builds on over two decades of experience, including more than 35,000 successful transcatheter defect closure implants, providing a significant foundation of expertise and clinical confidence. We offer closure devices that include features such as multi-element frame construction that adapts to varied anatomies, high closure rates, low arrhythmia incidence, and anatomical adaptability. Our delivery system enhances procedural control and safety, enabling retrievability and intuitive deployment.

#### Overview
We develop, manufacture, and market septal occlusion products, which are small, implantable devices delivered through a catheter inserted into a major blood vessel to permanently repair certain cardiac defects. Our devices include patented technology that has been in use extensively outside of the U.S. Procedures are performed in a cardiac catheterization lab and reduce the need for open heart surgery or a lifetime of drug therapy, which are currently the primary alternative methods for treating these defects. We have developed devices capable of providing effective, nonsurgical methods of correcting a variety of cardiac defects in both adults and children.

We have obtained CE Mark approval for our products, which is a prerequisite for the general sale of medical devices in the European Union (the "EU") and are currently marketing and selling our septal occlusion devices for the closure of certain cardiac defects through distribution partners in countries outside of the United States.

Our primary closure device is designed to repair a cardiac defect known as a patent foramen ovale ("PFO"). PFO is an abnormal passage or flap-like hole between the atrial chambers of the heart that can enable embolic material (clots) to travel from the right to left chambers and potentially cause a stroke. PFO is generally detected during adulthood. An estimated 25% of the population has a PFO, yet most people have no adverse effects and are unaware that they have a PFO. However, 50% of patients who suffer a cryptogenic (from an unknown cause) stroke also have a PFO. In the U.S., this represents approximately 139,000 patients annually, and at an assumed average sales price of $11,000 for each of our products, the potential annual market for our PFO products for stroke prevention may exceed $1.5 billion.

Previous clinical experiences indicate that in patients with migraine headaches and a PFO, closure of the PFO may eliminate or greatly reduce the occurrence of migraines. According to the Association of Migraine Disorders (Migrainedisorders.org), 13,000,000 people in the United States who have a PFO suffer from migraine headaches.

We believe we have a superior closure device for treating PFO defects. Our device features ease of deployment, low metal mass, low profile, conformity to the septal wall, accessibility upon reintervention, and a low incidence of post-implant arrythmia. Our PFO closure device addresses both the stroke and migraine markets.

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We also currently market and sell septal occlusion devices for the transcatheter closure of atrial septal defects ("ASD"). The ASD defect is generally described as a hole in the atrial septum that divides the right and left atria and is primarily a pediatric defect. The ASD market is a small market and is not a primary focus of our activities.

To date, our septal occlusion devices have been implanted in approximately 35,000 patients, all of whom reside in countries outside the United States, primarily for the purpose of treating PFO.

We currently do not have regulatory approval to sell our products in the United States, but the FDA has granted us an Investigational Device Exemption (IDE) approval to conduct our clinical trial to obtain market clearance for our PFO septal occlusion device for stroke. Such FDA approval, if obtained, would enable us to market our products throughout the United States. See "Business — Government Regulation" and "Risk Factors — Risks related to Regulation." Our FDA trial is currently underway and we estimate it will take approximately two years to complete. If we successfully complete this clinical trial, we would be required to submit an FDA PMA application for final FDA approval to begin marketing in the United States. There can be no assurance that we will not experience delays in this process or that the FDA will ultimately find our submission satisfactory. Even if we satisfactorily complete our clinical trial, there can be no assurance that the trial will yield sufficient results and data to allow commercial sales to be made in the United States. See "Risk Factors."

Our sales and marketing focus has been on the European market and other countries where we maintain the CE Mark and other certifications necessary to market our products. We market our products through a network of 11 international distributors to many countries, including Germany, the Czech Republic, Italy, Portugal, Spain, France, Switzerland, Austria, Lithuania, Hungary, Turkey, Mexico, and various countries in Central and South America. We are also adding independent distributors in countries in Central Asia, Central and South America. In the United States, the Company intends to develop and utilize a direct sales and marketing team, once our PFO device is approved for sale.

We are currently using cash flow from the sale of our products outside of the U.S. to help support our daily operations and have commenced this offering primarily to finance our U.S. clinical trials for the stroke and migraine indications.

#### Key Features of Our Devices
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • **Two Decades of Proven Design** 

Encore is built on over 20 years of experience and 35,000+ global implantations using the same core technology platform, resulting in a device informed by extensive real-world use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • **Ease of Implantability & Full Retrievability** 

Encore devices are engineered for smooth deployment, and are able to be fully retrieved or repositioned before final release if placement is not ideal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • **Effective Defect Closure & Tissue Preservation** 

Encore devices provide high closure rates with minimal residual shunting. They have low metallic surface area, which helps minimize thrombosis risk. The device also includes soft radiopaque discs that conform well to atrial anatomy, minimizing stress on tissue and preserving future trans-septal access to the left atrium.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • **Low Disturbance & Minimal Arrhythmias** 

Encore devices were designed to minimize disruption to normal blood flow and reduce force exerted on atrial walls, potentially resulting in a lower incidence of post-implant arrhythmias compared to competing devices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • **Anatomical Conformance & Self-Centering Design** 

The flexible, multi-element frame of Encore devices adapts in multiple dimensions to patient anatomy. The Company's ASD device is self-centering for optimal alignment, improving fit and reducing complications related to malpositioning.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • **Delivery System Optimized for Safety and Control** 

Encore's delivery system features J-shaped sheaths, radiopaque tips, a positive locking mechanism, and hemostasis introducers — tools carefully tailored to ease device deployment and enhance procedural control.

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#### Summary Risk Factors
An investment in our common stock involves a high degree of risk. Any of the factors set forth under "Risk Factors" may limit our ability to successfully execute our business strategy. You should carefully consider all of the information set forth in this prospectus, and, in particular, you should evaluate the specific factors set forth under "Risk Factors" in deciding whether to invest. Some of the more significant risks include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We have incurred net losses since inception and we expect to incur net losses for the foreseeable future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Inability to receive approval for or complete clinical trials, or experiencing significant delays in completing our clinical trials, could prevent or delay regulatory approval of our device and impair our financial position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Clinical trial results may not be consistent with past experience and could hinder our ability to succeed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • The medical device industry is highly competitive and heavily regulated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • New products or technological changes in the market could make it difficult for us to compete.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We could face significant risk from product liability claims if our products result in injury.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Third-party reimbursement is essential to achieve our plan, and if it is limited or unavailable, it would have a material adverse impact on our business and growth potential.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Export and import regulations, including tariffs, could impact foreign operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Regulatory reforms in the EU may make it more difficult and costly for us to market or distribute our products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We may be unable to enforce our intellectual property rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We will need additional capital to commercialize our products and may be unable to continue as a going concern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We may need to issue additional equity or take on debt financing that may be dilutive or detrimental to shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our results could be adversely impacted by foreign currency fluctuations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • All of our operations are conducted at one location, and any disruption at our facility could materially and adversely affect our businesses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We are dependent on vendors, consultants, Clinical Research Organizations (CROs) and other third parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We may need to implement a direct sales and marketing effort, which could require significant additional capital without any assurance that the strategy will be successful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We are dependent on a small number of employees to implement our plan and may be unable to retain or attract qualified personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our ownership is concentrated and our officers and directors have significant control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • The offering price was negotiated between us and our underwriter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our shares may be thinly traded and have limited liquidity following our initial public offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Investors will incur immediate and substantial dilution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We have not paid and do not intend to pay dividends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Investing in the offering is highly speculative and there is no assurance of a return on investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Anti-takeover laws and provisions in our governing documents may be detrimental to our shareholders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We may have to implement additional finance and accounting systems to operate as a public company and we may be unable to file financial and other information on a timely basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our business may be negatively impacted by natural disasters and future pandemics.

#### Implications of Being an Emerging Growth Company and a Smaller Reporting Company
We qualify as an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). As an emerging growth company, we may take advantage of specified reduced disclosure and other requirements that are otherwise applicable generally to public companies that are not emerging growth companies. These provisions include, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • being permitted to present only two years of audited financial statements and only two years of related "Management's Discussion and Analysis of Financial Condition and Results of Operations" disclosures in this prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • reduced disclosure obligations about our executive compensation arrangements in our periodic reports, proxy statements and registration statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • no requirement to conduct non-binding shareholder advisory votes on executive compensation or golden parachute arrangements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • exemption from the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act of 2002, as amended (the "Sarbanes-Oxley Act"), in the assessment of our internal control over financial reporting.

We may take advantage of these exemptions for up to five years or such earlier time that we are no longer an emerging growth company. We would cease to be an emerging growth company if we have more than $1.235 billion in annual gross revenues as of the end of our fiscal year, we have more than $700 million in market value of our common stock held by non-affiliates as of the most recently completed second fiscal quarter or we issue more than $1.0 billion of non-convertible debt over a three-year period. We may choose to take advantage of some or all of these reduced disclosure obligations.

In particular, in this prospectus, we have provided only two years of audited financial statements and have not included all of the executive compensation-related information that would be required if we were not an emerging growth company. Accordingly, the information contained herein may be different than the information you receive from other public companies in which you hold stock.

The JOBS Act permits an emerging growth company like us to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. We have elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. Our financial statements may, therefore, not be comparable to those of other public companies that comply with such new or revised accounting standards.

We are also a "smaller reporting company" as defined in Item 10(f)(1) of Regulation S-K. Smaller reporting companies may take advantage of certain reduced disclosure obligations, including, among other things, providing only two years of audited financial statements. We will remain a smaller reporting company until the last day of the fiscal year in which (1) the market value of our common stock held by non-affiliates exceeds $250 million as of the prior June 30, or (2) our annual revenues exceeds $100 million during such completed fiscal year and the market value of our common stock held by non-affiliates exceeds $700 million as of the prior June 30.

#### Company Information
Encore Medical, Inc. was incorporated as a Minnesota corporation on September 26, 2017. Our corporate offices are located at 2975 Lone Oak Drive, Suite 140, Eagan, Minnesota 55121, and our telephone number is 651-797-0913. Our website address is https://www.encore-medical.com. The information contained on, or accessible through, our website is not incorporated by reference into this prospectus, and you should not consider any information contained on, or that can be accessed through, our website as part of this prospectus or in deciding whether to purchase our common stock.

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#### The Offering
Issuer

Encore Medical, Inc.

Securities offered by us

shares of common stock.

Option to purchase additional shares

We have granted the underwriters a 45-day option to purchase up to additional shares of our common stock.

Underwriter's Warrants

We have agreed to issue to the underwriters, at the closing of this offering, warrants to purchase up to shares of our common stock (the "Underwriter's Warrants"). These warrants will become exercisable beginning one year after the closing date of this offering, have a term of seven years from that date, and will have an exercise price equal to 120% of the initial public offering price. The Underwriter's Warrants may be exercised on a cashless basis. See "Plan of Distribution."

Common stock outstanding immediately before this

offering

6,743,425 shares as of September 12, 2025

Common stock outstanding immediately after this

offering

shares, or shares if the underwriters exercise their over-allotment option in full.

Use of proceeds

We estimate that the net proceeds to us from this offering will be approximately $, or approximately $ if the underwriters exercise their over-allotment option in full, based on the initial public offering price of $ per share after deducting estimated underwriting discounts and commissions, and estimated offering expenses payable by us.

The principal purpose of this offering is to provide capital to finance clinical trials, particularly for stroke and migraine indications, working capital and for other general corporate purposes. We will have broad discretion in the way that we use the net proceeds of this offering. See "Use of Proceeds."

Dividend policy

We do not intend to pay dividends on our common stock. Any future determination to pay dividends to holders of common stock will be at the sole discretion of our board of directors and will depend upon many factors, including general economic conditions, our financial condition and results of operations, our available cash and current and anticipated cash needs and any other factors that our board of directors may deem relevant. See "Dividend Policy."

Risk factors

See "Risk Factors" and other information appearing elsewhere in this prospectus for a discussion of factors you should carefully consider before deciding whether to invest.

Trading

We have applied for listing of our common stock on NYSE American under the symbol "EMI."

The number of shares of common stock to be outstanding immediately after this offering is based on 6,743,425 shares of common stock outstanding as of September 12, 2025, after giving effect to the conversion of all 876,000 outstanding shares of our Series A Preferred Stock into an aggregate of 876,000 shares of common stock immediately prior to the closing of this offering (the "Series A Conversion") based upon on the initial public offering price of $ per share. The number of shares of common stock that will be

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outstanding after this offering excludes: (i) shares underlying warrants to be issued to the underwriter in connection with this offering, (ii) 450,643 shares of common stock reserved for issuance and 463,000 stock options issued and outstanding under the Encore Medical, Inc. 2018 Stock Incentive Plan, and (iii) 542,080 shares of common stock issuable upon the exercise of warrants issued and outstanding.

Unless we indicate otherwise or the context otherwise requires, all information in this prospectus assumes or gives effect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Series A Conversion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • no exercise by the underwriters of their option to purchase up to additional shares of common stock from us to cover over-allotments; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • an initial public offering price of $ per share of common stock.

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#### Summary of Historical Financial Data
The following summary statements of operations data for the fiscal years ended December 31, 2024 and 2023 and the summary balance sheet data as of December 31, 2024 and 2023 have been derived from our audited financial statements included elsewhere in this prospectus. We derived the summary statements of operations data for the six months ended June 30, 2025 and 2024 and the balance sheet data as of June 30, 2025 from our unaudited financial statements that are included elsewhere in this prospectus. The unaudited financial data set forth below has been prepared on the same basis as our audited financial statements, and, in the opinion of management, reflects all adjustments, consisting only of normal recurring adjustments, that are necessary for the fair statement of such data. Our historical results are not necessarily indicative of the results that may be expected for any other period in the future and our interim results for the six months ended June 30, 2025 are not necessarily indicative of results to be expected for the year ending December 31, 2025, or any other period.

The summary financial data in this section is not intended to replace the financial statements and related notes. The tables presented should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the financial statements and related notes included elsewhere in this prospectus.

#### Statement of Operations Data:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year Ended <br> December 31, <br> 2024**  | **Year Ended <br> December 31, <br> 2023**  | **Six Months Ended June 30,**  | **Six Months Ended June 30,**  |
| | **Year Ended <br> December 31, <br> 2024**  | **Year Ended <br> December 31, <br> 2023**  | **2024**  | **2025**  |
|  |  |  | **unaudited**  | **unaudited**  |
| **Summary Statements of Operations Data:** |  |  |  |  |
| Revenue  | $2134528 | $1434424 | $1047571 | $1010092 |
| Cost of goods sold  | 1361.077 | 912078 | 784796 | 602083 |
| Gross Profit  | 773451 | 522346 | 262774 | 408008 |
| Operating expenses<sup>(1)</sup>  | 2539723 | 1894079 | 730799 | 608353 |
| Operating Income (Loss)  | (1766272) | (1371733) | (468025) | (200345) |
| Other income (expense)  | (79679) | (15124) | (39629) | (40405) |
| Net Income (Loss)  | $(1845951) | $(1386857) | $(507653) | $(240750) |
| Weighted Average Shares Outstanding  | 5661954 | 5636425 | 5636425 | 5781237 |
| Net Loss per share  | $(0.33) | $(0.25) | $(0.09) | $(0.04) |

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#### Balance Sheet Data:

---

| | | | |
|:---|:---|:---|:---|
| | **December 31, <br> 2023**  | **December 31, <br> 2024**  | **June 30, <br> 2025**  |
|  |  |  | **unaudited**  |
| **Summary Balance Sheet Data:** |  |  |  |
| Cash  | $305272 | $246829 | $48363 |
| Accounts Receivable  |  | 349472 | 473110 |
| Accounts Receivable – related party  | 381727 |  |  |
| Inventories  | 466160 | 373598 | 395330 |
| Other Current Assets  | 25044 | 40564 | 19361 |
| Total current assets  | 1178202 | 1010463 | 936164 |
| Total assets  | 1692909 | 1450054 | 1336191 |
| Total current liabilities  | 433965 | 1011278 | 1021211 |
| Total liabilities  | 1854880 | 2358049 | 2326749 |
| Total shareholders' equity (deficit)  | (161972) | (907995) | (990558) |
| Working capital (deficit)  | $744237 | $(815) | $(85047) |

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#### RISK FACTORS
 *An investment in our common stock involves a high degree of risk. You should carefully consider the risks described below, together with the financial and other information contained in this prospectus, before you decide to invest. If any of the following risks actually occurs, our business, financial condition and results of operations could be materially and adversely affected. As a result, the trading price of our common stock could decline and you could lose all or part of your investment. Please also see "Cautionary Note Regarding Forward-Looking Statements."* 

#### Risks Related to Our Business

#### We have incurred net losses since inception and we expect to incur net losses for the foreseeable future.
We have and expect to continue to incur significant clinical and other development expenses and expect to continue to incur net losses for the foreseeable future. We had a net loss of $1,845,951 for the year ended December 31, 2024 and $240,750 for the six months ended June 30, 2025. As of June 30, 2025, we had a negative equity balance of $990,558. There can be no assurance that we will be able to generate sufficient revenues or net cash flow from operations or be able to attain and maintain profitable operations. Subsequent to this offering, we may have to raise additional capital from investors, which may include future equity and debt financing. We may not have accurately anticipated how much we will accomplish with the net proceeds from this offering, or we may experience lower than expected cash generated from operating activities or greater than expected capital expenditures, cost of revenue or operating expenses, and we may require additional funding in the future to further our growth plans. Any additional fundraising efforts may divert our management from their day-to-day activities. Any disruptions in the financial markets or other adverse macroeconomic conditions may make equity and debt financing more difficult to obtain and may have a material adverse effect on our ability to meet our fundraising needs. We cannot guarantee that future financing will be available in sufficient amounts or on terms favorable to us, if at all.

 ***We were formed in 2017 and have a limited operating history, which makes it difficult to evaluate our future prospects and the likelihood of our success.***

To date, our commercial activities have been concentrated in select European markets, and we have not yet received regulatory clearance or approval to market or sell our products in the United States. As a result, we have generated only limited revenue, substantially all of which has come from sales outside of the United States. Our ability to achieve or sustain profitability is highly dependent on securing regulatory approvals in the United States and expanding the adoption of our products globally.

In addition, as a company with a limited operating history, we may encounter unforeseen expenses, difficulties, complications, delays and other known and unknown factors. The challenges we face in managing our evolving business place significant demands on our management, financial, operational, manufacturing, research and development and other resources. If we do not adequately address these risks and difficulties, our ability to support and further grow our commercial activities may be negatively impacted.

 ***Our financial statements raise a significant doubt about our ability to continue as a going concern unless we raise additional capital to fund our business plan.***

Our independent registered public accounting firm has included an explanatory paragraph in its opinion that accompanies our audited consolidated financial statements as of and for the year ended December 31, 2024, indicating that our current liquidity position raises substantial doubt about our ability to continue as a going concern for the 12 month period following the issuance of the financial statements. If we are unable to improve our liquidity position, we may not be able to continue as a going concern. Our ability to raise the capital needed to improve our financial condition and execute our business plan may be hindered by poor market conditions, regulatory or legal concerns, uncertain industry trends or other constraints.

Management currently plans to seek additional equity financing; however, there is no assurance that this effort will be successful or sufficient to sustain operations beyond the next fiscal year. If the Company is unable to obtain necessary funding or improve its liquidity position, it may be forced to curtail operations,

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seek bankruptcy protection, or liquidate assets at values below their carrying amounts, which could result in significant losses for shareholders and creditors.

#### We have made certain assumptions in developing our strategy for the business, which may be inaccurate.
The Company has formulated its business plans and strategies based on certain assumptions regarding the development, manufacture, and marketing of its products. These assumptions include, without limitation, assumptions about the following: (i) the Company's ability to obtain the necessary or desirable clearances and approvals from the United States Food and Drug Administration (the "U.S. FDA") and other regulatory bodies in order to market its devices in the United States and elsewhere; (ii) the outcome of clinical trials and studies conducted by the Company and its competitors relating to the efficacy of septal occlusion devices in general for treating various medical indications; (iii) the size of the market for the Company's devices; (iv) the regular and adequate reimbursement by third-party payors of the costs of the Company's septal occlusion devices and their implantation procedures; and (v) the acceptance in the medical community of an alternative method for treating cardiac defects. Although these assumptions are based on the best estimates of management, there can be no assurance that the Company's assessments regarding market size, market share, the establishment of sufficient causal links between septal occlusion devices (including the Company's products) and various medical indications, regulatory approvals or market acceptance of the Company's products or a variety of other factors will be correct. Any future success of the Company will depend upon many factors, including factors which may be beyond the control of the Company, or which cannot be predicted at this time. If any of our underlying assumptions are incorrect, our business, financial condition, and results of operations could be materially and adversely affected. Furthermore, our future success depends on a number of factors that are beyond our control or inherently difficult to predict.

#### We are exposed to risks from potential product liability claims.
The manufacture and sale of implantable medical device products entails significant risk of product liability claims. The Company faces an inherent risk of exposure to product liability claims if the use of its products results, or is alleged to result, in injury. The Company maintains product liability insurance that it believes provides appropriate coverage for the manufacture and sale of its products. This insurance also provides coverage in the United States for investigational devices. There can be no assurance, however, that insurance coverage will continue to be available to the Company at affordable rates, if at all. The Company cannot ensure that its current insurance or insurance that may be obtained in the future will provide adequate coverage against any or all potential claims. Our insurance policies may include significant exclusions, limitations, and conditions, and may not cover certain types of claims or damages. We may also be subject to claims that exceed policy limits. A liability claim, even one without merit, could result in significant legal defense costs that would increase the Company's expenses, lower its potential earnings, and result in continuing losses. See "Business — Product Liability Insurance." In addition, an adverse outcome in a product liability case, or a series of claims, could lead to negative publicity, reputational damage, increased regulatory scrutiny product recalls, or a loss of physician or patient confidence in the products. Any of these outcomes could materially and adversely affect our business, financial outcomes.

 ***We depend on our senior management team and the loss of one or more key employees or an inability to attract and retain qualified employees could harm our business.***

Our ability to develop and market our products and compete effectively depends, in large part, on the continued services of key members of our executive management team as well as our ability to attract, motivate and retain qualified personnel with scientific, marketing or technical experience. Competition for such personnel is intense and there can be no assurance that we will be able to attract and retain such personnel. In particular, the services and expertise provided by Messrs. Marino, Buonomo, and Robinson are critical to our overall management as well as the continued development of our solutions, strategies and operations. If we lose one or more key employees, we may experience difficulties in competing effectively, developing our technologies and implementing our business strategy. Our employees may terminate their employment with us at any time. We do not have key-person life insurance covering any of our employees.

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 ***If our business grows, it will place increased demands on our management and our operational and production capabilities that we may not be able to adequately address. If we are unable to meet these increased demands, our business will be harmed.***

If we do not manage our growth effectively, we may make mistakes in operating our business, such as inaccurate forecasting. The anticipated growth of our operations will place significant demands on our management and operational resources. In order to manage growth effectively, we must implement and improve our operational systems, procedures and controls on a timely basis. If we cannot manage our business effectively, our business could suffer. A failure to effectively manage this growth could result in delays in product development or commercialization, quality control issues, supply disruptions, or increased costs, and which could materially and adversely affect our business, financial condition, and results of operation.

#### If the market for our products does not grow as expected, our business and future prospects could be materially harmed.
Our business strategy depends on the continued adoption of implantable septal occlusion devices as a preferred treatment for certain cardiac conditions, including patent foramen ovale (PFO). If the market for these devices does not expand as expected — due to clinical skepticism, alternative treatments, reimbursement limitations, or insufficient physician training — our revenue potential may be limited. Market growth may also be constrained by lack of patient awareness, delays in guideline updates, or slow adoption in key markets. If the overall market opportunity is smaller than we anticipate, our business, financial condition, and results of operations could be materially adversely affected.

#### Product defects, safety issues, or recalls could result in significant liability and harm our reputation and business.
The development, manufacturing, and sale of medical devices involve inherent risks related to product performance and patient safety. If any of our products are found to have design or manufacturing defects, or are associated with unexpected adverse events, we could be subject to product recalls, safety notices, regulatory action, and product liability claims. Even if a recall or claim is not ultimately successful, it could result in negative publicity, increased regulatory scrutiny, and loss of physician and patient trust. Any issues with product quality or safety could materially and adversely affect our reputation, financial performance, and long-term commercial prospects.

#### We are dependent upon certain vendors, consultants, CROs and other third parties.
Our product development, manufacturing, testing and regulatory clearance efforts will be heavily dependent upon vendors, subcontractors, consultants, and other parties. We cannot assure you that these parties will be successful in assisting us in these efforts. Generally, product design, engineering, prototyping, testing and manufacturing are completed internally, while biological and compatibility testing, package testing, sterilization and animal pilot studies are conducted externally. Our business will be materially and adversely affected if our testing or regulatory clearance efforts are delayed, interrupted, or not completed by any of these parties or if our relationship with any of these parties were to change. Our business will also be materially and adversely affected if we are unable to source materials and components from suppliers to manufacture our products.

#### Our ability to generate revenue and achieve profitability is dependent on our ability to protect our intellectual property.
Our revenue and profitability will depend on our ability to obtain and enforce protections on our proprietary rights and technologies. We seek to protect our products and have obtained patent protection for our products. See "Business — Patents, Trademarks and Proprietary Rights." However, there can be no assurance that any existing or future patent applications will be issued, that the scope of any patent or trademark protection will exclude competitors or provide us with competitive advantages, that others will not claim rights or ownership of the patents, trademarks and other proprietary rights held by us or that our products and technologies will not infringe, or be alleged to infringe, the proprietary rights of others. Furthermore, there can be no assurance that others have not developed or will not develop similar

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technologies, duplicate any of our products or technologies, or design around our patents. In addition, others may hold or receive patents that contain claims having a scope that covers products subsequently developed by the Company.

Litigation may be necessary in the future to enforce any patents obtained by us to protect trade secrets or know-how owned by us, to defend against claimed infringement of the rights of others or to terminate the scope and validity of the proprietary rights of others. Such litigation, if necessary, could result in substantial cost to our Company and the diversion of management effort and resources. Even if we prevail, litigation could be protracted and expensive, and any unfavorable outcome could subject us to significant liability, require us to cease certain activities for our products, or force us to obtain licenses from third parties. Moreover, there is no assurance that we can prevail in any such actions or that licenses necessary for us to operate without patent protection would be available on satisfactory terms or at all.

#### All of our operations are at one location and any disruption could materially and adversely affect our business.
Because of the level of precision and quality required for our operations, we currently conduct and intend to conduct all of our manufacturing and preclinical work in-house at our own facility for the foreseeable future. Our facility and equipment would be costly to replace and could require substantial lead time to repair or replace. The facility may be harmed or rendered inoperable by natural or man-made disasters, including fire, flooding, terrorism, cyberattacks, power outages and other infrastructure failures. Any of these may render it difficult or impossible for us to perform our research, development and commercialization activities for some period of time. The inability to perform those activities may result in the loss of certain opportunities or harm to our reputation. Although we possess insurance for damage to our property and the disruption of our business, this insurance may not be sufficient to cover all of our potential losses and this insurance may not continue to be available to us on acceptable terms, or at all.

#### Our financial results may be negatively impacted by foreign currency fluctuations and tariffs.
For financial reporting purposes, our sales and expenses are denominated in U.S. dollars. However, substantially all of our revenue to date has been generated in foreign countries and denominated in foreign currencies, such as the European Economic Union's Euro and Canadian Dollar. As a result, our financial results are subject to volatility from changes in exchange rates. Currency fluctuations could in the future have a negative impact on our financial condition. For example, a strengthening U.S. dollar would result in lower sales and earnings for financial reporting purposes. Similarly, our sales and earnings could in the future be lower than expected due to fluctuations between foreign currencies against each other and against the U.S. dollar. Our sales and earnings may also be impacted by tariffs instituted by the United States or in foreign countries where we do business. New or increased tariffs, duties, or other trade restrictions could increase our costs, reduce our margins, delay shipments, or make our products less competitive in certain markets. Both currency fluctuations and tariffs could have a material adverse effect on our revenue and cash flows. In addition, trade tensions, retaliatory measures, or changes in trade policies could further exacerbate these risks and introduce uncertainty.

#### We may face challenges expanding into international markets, which could limit our growth potential.
Although we have obtained CE Mark approval and generate revenue from European markets, our ability to expand internationally is subject to numerous risks, including varying regulatory standards, pricing and reimbursement environments, language and cultural barriers, and economic or political instability. In some jurisdictions, we may encounter delays in product approvals, limited market access, or unfavorable pricing conditions. If we are unable to effectively establish commercial infrastructure or build relationships with local distributors, physicians, and payors, our international growth may be limited.

#### We may be required to hire a direct sales and marketing team to sell our products in the U.S.
Should we elect to pursue a direct sales and marketing channel for the sale of our products in the U.S., we will need to finalize our plan for the build out of that function, potentially requiring significant additional capital. There can be no assurance that we will be able to successfully build a sales and marketing team, or that we will be able to successfully market and sell our products in the U.S.

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#### A failure of our IT systems could have a material adverse impact on our business operations and financial condition.
We rely on IT systems, networks, and services, including internet sites, data hosting and processing facilities and tools, hardware (including laptops and mobile devices), software and technical applications and platforms, some of which are managed, hosted, provided and used by third parties or their vendors, to assist us in the management of our business. Increased IT security threats pose a potential risk to the security of our IT systems, networks and services, as well as the confidentiality, availability, and integrity of our data, and we may experience cyberattacks and other unauthorized access attempts to our IT systems. In the event of a ransomware or other cyber-attack, the integrity and safety of our data could be at risk or we may incur significant costs that could have a material adverse impact on our business and financial condition.

Our existing general liability and cybersecurity liability insurance policies may not cover, or may cover only a portion of, any potential claims related to security breaches to which we are exposed or may not be adequate to indemnify us for all or any portion of liabilities that may be imposed. We also cannot be certain that our existing insurance coverage will continue to be available on acceptable terms or in amounts sufficient to cover the potentially significant losses that may result from a security incident or breach or that the insurer will not deny coverage of any future claim. Accordingly, if our cybersecurity measures, and those of our customers and service providers, fail to protect against unauthorized access, attacks (which may include sophisticated cyberattacks), and the mishandling of data, then our reputation, business, financial condition, results of operations and prospects could be materially and adversely affected.

#### Our failure to adequately maintain and protect personal information of our customers or employees could have a material adverse effect on our business.
We may collect, use, store, disclose or transfer (collectively, "process") personal information, including from employees, customers, payers and others in connection with the operation of our business. In the event of patient data collection, we may use approved 3rd party vendors to ensure compliance with medical industry standards and regulations. A wide variety of local and international laws as well as regulations and industry guidelines apply to the privacy and collecting, storing, use, processing, disclosure and protection of personal information and may be inconsistent among countries or conflict with other rules. Data protection and privacy laws and regulations are changing, subject to differing interpretations and being tested in courts and may result in increasing regulatory and public scrutiny and escalating levels of enforcement and sanctions. Our actual or alleged failure to comply with any applicable privacy and data protection laws and regulations, industry standards or contractual obligations, or to protect such information and data that we process, could result in litigation, regulatory investigations, and enforcement actions against us and could have a material adverse impact on our business and financial condition.

#### Risks related to Our Industry

#### The medical device industry is heavily regulated, intensely competitive, and has a high failure rate.
The implantable medical device industry is a market in which there is an increasing number of companies, intense competition, extensive regulation and a high failure rate. Our prospects must be considered in light of the substantial risks, expenses and difficulties encountered in the heavily regulated medical device industry.

#### We face intense competition in our markets and for our products.
The markets in which we compete and intend to compete are characterized by rapidly evolving technology and intense competition. Our principal competitors are large, established companies with name recognition and research and development, marketing, production, sales, financial and other resources far greater than ours. Two of our primary competitors in the U.S. for PFO products are Abbott Laboratories and W.L. Gore. We cannot assure that healthcare providers will view our products as competitive with the products marketed and sold by larger, more established companies. While we believe our products have features that are superior to these competitors, there can be no assurance that we will be able to compete successfully against these or other competitors or that the competitive pressures we face will not adversely affect our

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business, operating results and financial condition. See "Business — Competition." In addition, new market entrants, technological advances, or changes in reimbursement could further intensify competitive pressures.

#### We face pricing pressure from competitors, payors, and procurement practices, which may negatively impact our margins.
We operate in a competitive market where pricing pressure is common due to public and private payors seeking to reduce healthcare costs, hospitals engaging in group purchasing negotiations, and competitors offering volume-based or bundled pricing. If we are unable to maintain favorable pricing, or if reimbursement rates decline, our gross margins and revenue could be adversely affected. Additionally, as we seek to expand into new markets or negotiate with large hospital systems, we may be required to offer discounted pricing, which could further pressure our profitability.

 ***Our industry is characterized by rapid technological change and there is no assurance that we will be able to develop or respond to technological changes or new products developed by competitors.***

The medical device industry is characterized by rapid technological change. There can be no assurance that we will be able to develop or acquire new products or effectively respond to technological changes or new products developed by competitors. We cannot ensure that our current products, or products under development, will achieve or maintain market acceptance. Certain of the medical indications that can be treated by our devices can also be treated by surgery, drugs or other medical devices. Currently, the medical community widely accepts many alternative treatments that have a long history of use. We cannot ensure that physicians or the medical community, in general, will accept and use our devices or any other medical products that we may develop. In addition, our success may also depend, in part, on our ability to develop new and improved implant technologies and products. Even if we determine that a product has medical benefits, the cost of commercialization may be too high to justify development. In addition, competitors may develop products that are more effective, cost less or are ready for commercial introduction before our products. If we are unable to enhance existing products or develop new commercially viable products or obtain the requisite approvals in markets such as the United States to market our existing or future products, our business and prospects could be harmed.

#### Third-party reimbursement is critical to the success of our business.
We believe the availability of third-party reimbursement is critical to the attainment of desired revenues. In the United States, health care providers such as hospitals and physicians that purchase medical devices such as ours generally rely on third-party payors, such as Medicare, Medicaid and private health insurance plans to reimburse all or part of the cost of the procedure in which the medical device is being used. Physicians' decisions to recommend devices such as ours are likely to be heavily influenced by the scope and extent of reimbursement for these products by third-party payors. Government and private third-party payors are increasingly attempting to contain health care costs by limiting both the extent of coverage and the reimbursement rate for new treatment products. In particular, services that are determined to be investigational in nature or which are not considered "reasonable and necessary" for treatment may be denied reimbursement coverage. Reimbursement and health care payment systems in international markets vary significantly by country and include both government sponsored health care and private insurance. While reimbursement has been established in the U.S. for approved competing products, if adequate reimbursement coverage is not available from insurers or third-party payors in the United States and foreign markets, it is uncertain whether individuals would elect or be able to directly pay for our products. If insurers or third-party payors and individuals are unwilling to pay for our products under development, our potential revenue and earnings would be significantly decreased or eliminated.

#### Future pandemics could have a negative impact on our industry and our business.
During the COVID-19 pandemic, elective surgeries were significantly curtailed. Future global pandemics may have a material and negative impact on our industry and our business and prevent us from executing on our business plan. Among other potential impacts, prevalent community spread in many parts of the U.S. and resulting state and local stay-at-home orders and related guidelines may materially disrupt our manufacturing supply chains and make it difficult or impossible to conduct clinical trials of our products

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on our desired timetable. Outside of the U.S., in markets where our products are currently available for sale, a pandemic may decrease demand for our products as potential customers avoid undergoing surgical procedures determined to be non-emergency in nature. A pandemic may also lead to a deterioration in general economic conditions in the U.S. and abroad that could negatively impact our business. There can be no assurance that we would be able to successfully navigate the challenges of a pandemic and execute our business plan.

#### Risks related to Regulation

#### Government regulation of medical devices is extensive in the U.S. and other countries.
Government regulation in the United States and other countries is a significant factor in the development and marketing of our products and our ongoing manufacturing and research and development activities. Our products are considered to be medical devices and, therefore, require clearance or approval by the FDA before commercial sales can be made in the United States. The process of obtaining FDA clearance or approval to market a product varies according to the nature and use of the product and can involve lengthy and detailed laboratory and clinical testing, sampling activities and other costly and time-consuming procedures that can span many years. Our current products and other products we may develop in the future may require compliance with the FDA's Class III device regulations. Class III devices are those devices for which pre-market approval (as distinct from pre-market notification) is required to assure the device's safety and effectiveness prior to commercial distribution.

We have begun applying for but have not yet received marketing clearance from the FDA to sell any of our products in the United States. There can be no assurance when this approval will be received, if ever. On September 7, 2022, the FDA granted us an Investigational Device Exemption ("IDE") application to commence Class III clinical trials in the United States for our PFO septal occlusion devices. An IDE is required to conduct the clinical trial that is necessary to gather the data that would form the basis for a Pre-Market Approval Application ("PMA"). We have initiated the clinical trial, which could take several years to complete. There can be no assurance that such trial can or will be completed in a timely manner, or at all, or that such trial will yield sufficient results to support final approval by the FDA of the PMA application necessary for commercial sales to be made in the United States. Our inability to ultimately obtain the approvals necessary to market our products in the United States, or such approvals on a timely basis, would have a material adverse effect on our business, financial condition, and results of operations. Failure to obtain or delays in obtaining necessary FDA approvals could prevent or significantly delay our entry into the U.S. market, which would have a material adverse effect on our business, financial condition, and results of operations. See "Business — Government Regulation."

#### We may experience difficulty enrolling patients in our clinical trials, which could delay or prevent regulatory approval.
Timely enrollment of patients in clinical trials is essential to meeting our development timelines. Factors that may adversely affect enrollment include the relative rarity of eligible patients, competition from other ongoing clinical studies, strict inclusion criteria, physician or site availability, and patient concerns about participation. If we are unable to enroll patients in accordance with our projected schedule, we may experience delays or increased costs in completing our clinical trial, which could delay regulatory approval and commercialization of our products in the United States.

#### Unfavorable outcomes from clinical trials could materially and adversely affect our future products and business plans.
The success of our ability to generate value for our shareholders is dependent upon, among other things, the outcome of U.S. FDA clinical trials that establish the non-inferiority of our products to approved competitive products and intended clinical outcomes. An unfavorable outcome of future studies or U.S. FDA clinical trials conducted by us or other competitors, which include any of our products, could materially and adversely affect our estimates of the market potential for our existing and future products and business plans.

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#### Export and import regulations, including tariffs, may negatively impact our foreign operations.
Sales of medical devices outside the United States are subject to the United States export requirements and foreign regulatory requirements. Legal restrictions on the sale of imported medical devices generally vary from country to country. The time and requirements to obtain approval by a foreign country outside of the EU may differ substantially from those applicable in the United States and Europe. Although we have obtained CE Mark approval, which permits us to sell our current septal occlusion devices in the EU and elsewhere, we may encounter obstacles in selling our devices in other countries or be unable to obtain other regulatory approvals or clearances that may be necessary in the future. Furthermore, the U.S. or other countries may impose or increase trade tariffs on products and components that could have a material adverse impact on our business. Changes in international trade policies, customs procedures, or sanctions may also affect our ability to sell or ship devices into key markets.

#### Regulatory reforms in the EU may make it more difficult and costly for us to market or distribute our products in the EU.
The EU landscape concerning medical devices has evolved. On May 25, 2017, the EU Medical Devices Regulation went into effect, which repealed and replaced the EU Medical Devices Directive. This modification has an effect on the way we conduct our business in the EEA. For example, as a result of the transition toward the new regime, notified body review times have lengthened, and product introductions or modifications could be delayed or canceled, which could adversely affect our ability to grow our business. We cannot determine what effect changes in regulations, statutes, legal interpretation or policies, when and if promulgated, enacted or adopted may have on our business in the future. Such changes could, among other things, require additional testing prior to obtaining clearance or approval; changes to manufacturing methods; recall, replacement or discontinuance of our products; or additional record keeping.

#### Risks related to our Common Stock and this Offering
 ***We will need to implement additional finance and accounting systems, procedures and controls to satisfy public company reporting requirements, which will increase our costs and divert management's time and attention.***

As a public company, we will incur significant legal, accounting and other expenses that we did not incur as a private company, including costs associated with our public company reporting requirements and corporate governance requirements, including requirements under the Sarbanes-Oxley Act, as well as new rules implemented by the Securities and Exchange Commission ("SEC") and NYSE American.

As an example of reporting requirements, we are evaluating our internal control systems to allow management to report on our internal control over financial reporting, as required by Section 404 of the Sarbanes-Oxley Act. As a company with limited capital and human resources, we anticipate that more of management's time and attention will be diverted from our business to ensure compliance with these regulatory requirements compared to a company with established controls and procedures. This diversion of management's time and attention may have a material adverse effect on our business, financial condition and results of operations.

 ***We are eligible to be treated as an emerging growth company, and the reduced disclosure requirements applicable to emerging growth companies may make our shares less attractive to investors.***

Upon consummation of the initial public offering, we will be an emerging growth company, as defined in the JOBS Act. For as long as we continue to be an emerging growth company, we may take advantage of exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies, including, among others, (1) not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, (2) reduced disclosure obligations regarding executive compensation in this prospectus and our periodic reports and proxy statements, (3) exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved and (4) the requirement to present only two years of audited financial statements and only two years of related "Management's discussion and analysis of financial condition and results of operations" disclosures in this prospectus. We could be an emerging growth company for up to five years, although circumstances could cause us to lose that

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status earlier, including if the market value of our common stock held by non-affiliates exceeds $700 million as of the end of the second fiscal quarter in any fiscal year before that time or if we have total annual gross revenues of $1.235 billion or more during any fiscal year before that time, in which case we would no longer be an emerging growth company as of the fiscal year end, or if we issue more than $1.0 billion in non-convertible debt during any three-year period before that time we would cease to be an emerging growth company immediately. We cannot predict if investors will find our common stock less attractive because we may rely on these exemptions. If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and our share price may be more volatile.

Under the JOBS Act, emerging growth companies can also delay adopting new or revised accounting standards until such time as those standards apply to private companies. We have elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies and intend to continue such election until the earlier of the date we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. Our financial statements may therefore not be comparable to those of other public companies that comply with such new or revised accounting standards.

 ***If we are unable to implement and maintain effective internal control over financial reporting in the future, investors may lose confidence in the accuracy and completeness of our financial reports and the market price of common stock may decrease.***

We are in the process of designing and implementing our internal controls over financial reporting, which will be time-consuming, costly and complicated. While performing the audit of our 2024 and 2023 financial statements, our auditors identified material weakness in our internal controls over financial reporting related to our financial close and reporting, inventory valuation and document retention. We cannot provide assurances that there will not be material weaknesses or significant deficiencies in our internal control over financial reporting in the future. If we identify additional material weaknesses in our internal control over financial reporting, if we are unable to comply with the requirements of Section 404 in a timely manner, if we are unable to assert that our internal control over financial reporting is effective or, once required, if our independent registered public accounting firm is unable to attest that our internal control over financial reporting is effective, investors may lose confidence in the accuracy and completeness of our financial reports and the market price of common stock could decrease. We could also become subject to shareholder or other third-party litigation as well as investigations by NYSE American, the SEC or other regulatory authorities, which could require additional financial and management resources and could result in fines, trading suspensions or other remedies.

#### If you purchase common stock in this offering, you will suffer immediate and substantial dilution of your investment.
The initial public offering price of common stock is substantially higher than the net tangible book value per share. Therefore, if you purchase common stock in this offering, you will pay a price per share that substantially exceeds our net tangible book value per share after this offering. Based on the initial public offering price of $ per share you will experience immediate dilution of $ per share, representing the difference between our pro forma as adjusted net tangible book value per share after giving effect to this offering and the initial public offering price. In addition, purchasers of common stock in this offering will have contributed % of the aggregate price paid by all purchasers of our common stock but will own only approximately % of our common stock outstanding after this offering. See "Dilution" for more detail.

 ***Your percentage ownership in us may be diluted by future issuances of capital stock, which could reduce your influence over matters on which shareholders vote.***

Pursuant to our articles of incorporation and bylaws, our board of directors has the authority, without action or vote of our shareholders, to issue all or any part of our authorized but unissued stock, including shares issuable upon the exercise of options, warrants or shares of our authorized but unissued preferred stock. Issuances of common stock or voting preferred stock would reduce your influence over matters on

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which our shareholders vote and, in the case of issuances of preferred stock, would likely result in your interest in us being subject to the prior rights of holders of that preferred stock.

#### An active, liquid trading market for our common stock may not develop, which may limit your ability to sell your shares.
Prior to this offering, there was no public market for our common stock. Although we have applied to list shares of our common stock on NYSE American under the symbol "EMI," an active trading market for our shares may never develop or be sustained following this offering. The initial public offering price will be determined by negotiations between us and the underwriters and may not be indicative of market prices of our common stock that will prevail in the open market after the offering. A public trading market having the desirable characteristics of depth, liquidity and orderliness depends upon the existence of willing buyers and sellers at any given time, such existence being dependent upon the individual decisions of buyers and sellers over which neither we nor any market maker has control. The failure of an active and liquid trading market to develop and continue would likely have a material adverse effect on the value of our common stock. The market price of our common stock may decline below the initial public offering price, and you may not be able to sell your shares of our common stock at or above the price you paid in this offering, or at all. An inactive market may also impair our ability to raise capital to continue to fund operations by selling shares and may impair our ability to acquire other companies or technologies by using our shares as consideration.

 ***As a public company, we will become subject to additional laws, regulations and stock exchange listing standards, which will impose additional costs on us and may strain our resources and divert our management's attention.***

Prior to this offering, we operated on a private basis. After this offering, we will be subject to the reporting requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), the Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the listing requirements of NYSE American and other applicable securities laws and regulations. Compliance with these laws and regulations will increase our legal and financial compliance costs and make some activities more difficult, time-consuming or costly. We also expect that being a public company and being subject to new rules and regulations will make it more expensive for us to obtain director and officer liability insurance, and we may be required to accept reduced coverage or incur substantially higher costs to obtain coverage. However, the incremental costs that we incur as a result of becoming a public company could exceed our estimate. These factors may therefore strain our resources, divert management's attention and affect our ability to attract and retain qualified members of our board of directors.

 ***A significant portion of our total outstanding shares are restricted from immediate resale but may be sold into the market in the near future. This could cause the market price of our common stock to drop significantly, even if our business is performing well.***

Sales of a substantial number of shares of our common stock in the public market could occur at any time. These sales, or the perception in the market that the holders of a large number of shares intend to sell shares, could reduce the market price of our common stock. After this offering, we will have outstanding 9,743,425 shares of common stock based on the number of shares outstanding as of September 12, 2025. This includes 3,000,000 shares that we are selling in this offering, which may be resold in the public market immediately. A significant number of the shares held by existing investors will be subject to a 180-day lock-up period provided under agreements executed in connection with this offering. These shares will, however, be able to be resold after the expiration of the lock-up agreement, as described in the "Shares eligible for future sale" section of this prospectus. We will also file a Form S-8 under the Securities Act to register all securities that we may issue under our equity compensation plans. As restrictions on resale end, the market price of our stock could decline if the holders of currently restricted shares sell them or are perceived by the market as intending to sell them.

 ***Since we have no current plans to pay cash dividends on our common stock following this offering, you may not receive any return on investment unless you sell your common stock for a price greater than that which you paid for it.***

We do not anticipate paying any cash dividends on our common stock following this offering. Any decision to declare and pay dividends in the future will be made at the discretion of our board of directors

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and will depend on, among other things, our results of operations, financial condition, cash requirements, contractual restrictions and other factors that our board of directors may deem relevant. In addition, our ability to pay dividends is, and may be, limited by covenants of existing and any future outstanding indebtedness we or our subsidiaries incur. Therefore, any return on investment in our common stock is solely dependent upon the appreciation of the price of our common stock on the open market, which may not occur. See "Dividend Policy" for more detail. Accordingly, you should not rely on an investment in our common stock for dividend income. Any return on your investment will likely depend entirely upon any future appreciation in the market price of our common stock.

 ***If securities or industry analysts do not publish research or reports about our business, if they adversely change their recommendations regarding our shares or if our results of operations do not meet their expectations, our share price and trading volume could decline.***

The trading market for our shares will be influenced by the research and reports that industry or securities analysts publish about us or our business. We do not have any control over these analysts. Securities and industry analysts do not currently, and may never, publish research on us. If no securities or industry analysts commence coverage of our company, the trading price of our shares could be negatively impacted. In the event securities or industry analysts initiated coverage, and one or more of these analysts cease coverage of our company or fail to publish reports on us regularly, we could lose visibility in the financial markets, which in turn could cause our share price or trading volume to decline. Moreover, if any of the analysts who cover us downgrade our stock, or if our results of operations do not meet their expectations, our share price could decline.

#### We will have broad discretion in the use of net proceeds from this offering.
Our management will have broad discretion over the use of the net proceeds of this offering. We intend to use the net proceeds from this offering primarily to fund our clinical trials, particularly for stroke and migraine indications. The proceeds may also be used for working capital and general corporate purposes. However, this expected use of the net proceeds from this offering represents our intentions based upon our current plans and business conditions, which could change in the future as our plans and business conditions evolve. Accordingly, investors in this offering will need to rely upon the judgment of our management with respect to the use of proceeds with only limited information concerning management's specific intentions. See "Use of Proceeds" for additional information.

 ***Our officers and directors will continue to hold a significant percentage of our shares after this offering with significant influence in determining the outcome of any matters submitted to shareholders for approval.***

Upon completion of this offering, our officers and directors collectively will own approximately 25% of shares of our common stock based on the SEC's beneficial ownership rules and pro forma adjustments (assuming no exercise of the underwriters' option to purchase additional shares). Mr. Marino, our Chairman, will own, when combined with family members' ownership, approximately 17.6% of the shares of our common stock based on the SEC's beneficial ownership rules and pro forma adjustments, following completion of the offering (assuming no exercise of the underwriters option to purchase additional shares). As such, our officers and directors will have significant influence in determining the outcome of any matters submitted to shareholders for approval, including the election of directors and any merger, consolidation, sale of all or substantially all of our assets, or other significant corporate transactions.

#### Anti-takeover laws and provisions could impede or diminish the value of a sale of our company.
The effect of certain provisions of the Minnesota Business Corporation Act, the ability of our board of directors to issue preferred stock without shareholder approval and the staggered election of directors over 3-year terms may have the effect of delaying or preventing a change in control or merger of us which could operate to the detriment of our shareholders. See "Description of Securities."

 ***Our operating results and share price may be volatile, and the market price of our common stock after this offering may drop below the price you pay.***

Our quarterly and annual operating results are likely to fluctuate in the future as a publicly traded company. In addition, securities markets worldwide have experienced, and are likely to continue to experience,

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significant price and volume fluctuations. This market volatility, as well as general economic, market or political conditions, could subject the market price of our shares to wide price fluctuations regardless of our operating performance. We and the underwriters will negotiate to determine the initial public offering price. You may not be able to resell your shares at or above the initial public offering price or at all. Our operating results and the trading price of our shares may fluctuate in response to various factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • actual or anticipated fluctuations in our quarterly financial and operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • introduction of new products or product enhancements by us or our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • issuance of new or changed securities analysts' reports or recommendations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • results of operations that vary from expectations of securities analysts and investors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • guidance, if any, that we provide to the public, any changes in this guidance or our failure to meet this guidance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • strategic actions by us or our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • announcement by us, our competitors or our vendors of significant contracts or acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the results of our clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to obtain FDA approval to market our products in the US;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the availability of reimbursement for our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • additions or departures of key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • regulatory, legislative or political developments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • public response to press releases or other public announcements by us or third parties, including our filings with the SEC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • litigation and governmental investigations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • changes in general economic and market conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • changes in accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • default under agreements governing our indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • exchange rate fluctuations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • other events or factors, including those from public health crises, natural disasters, war, acts of terrorism or responses to these events.

These and other factors, many of which are beyond our control, may cause our operating results and the market price and demand for our shares to fluctuate substantially. In addition, the share prices of many companies in the medical device industry have experienced wide fluctuations that have often been unrelated to the operating performance of those companies. While we believe that operating results for any particular quarter are not necessarily a meaningful indication of future results, fluctuations in our quarterly operating results could limit or prevent investors from readily selling their shares and may otherwise negatively affect the market price and liquidity of our shares.

In addition, in the past, when the market price of a stock has been volatile, holders of that stock have sometimes instituted securities class action litigation against the company that issued the stock. If any of our shareholders brought a lawsuit against us, we could incur substantial costs defending the lawsuit. Such a lawsuit could also divert the time and attention of our management from our business, which could significantly harm our profitability and reputation.

 ***We may require additional capital to pursue our business objectives. If such capital is not available to us, our business, financial condition and results of operations may be materially and adversely affected.***

We may require additional capital to pursue regulatory approvals, marketing and manufacturing of products, as well as other expenditures. There can be no assurance that we will not require additional

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funding to complete regulatory requirements or otherwise implement our business plan if operating costs are higher or revenues are lower than expected, or if the acceptance of our products does not proceed or continue as expected. In the event additional financing is necessary, we may be required to seek it from a number of sources, including possible further sales of equity securities, loans from banks or other financial institutions, or possible alliances with other interested parties. No assurance can be given that we will be able to obtain additional financing at all or on terms favorable or acceptable to us. Global economic conditions may also adversely impact our ability to raise or obtain additional capital. Global economic conditions and capital markets volatility may also adversely affect our ability to raise additional capital. If we are required to sell additional securities, we may have to do so at a price that is less than the price paid by purchasers in the offering. The terms of any financing may adversely affect the rights of our shareholders. Sale of additional equity or convertible securities would dilute all of our shareholders.

#### We may not be able to meet our debt obligations, and any default could have a material adverse effect on our financial condition.
We may incur additional debt in the future to fund our operations, clinical trials, or commercialization efforts. Our ability to meet our debt service obligations will depend on our future financial performance, which is subject to operational, regulatory, and market risks. If we are unable to generate sufficient cash flow or obtain additional financing on acceptable terms, we may default on our obligations. A default could result in acceleration of our indebtedness, restrict our access to additional capital, or require us to significantly curtail our operations. In addition, any debt instruments we enter into may contain restrictive covenants that limit our ability to operate our business freely.

 ***We have granted our existing lender certain rights of first offer and other preferential rights, which could limit our flexibility in future financing or strategic transactions and may discourage third-party investors or acquirers.***

We have entered into an agreement with an existing lender that provides such lender with certain preferential rights, including a right of first offer with respect to future equity or debt financings and/or other strategic transactions. The right of first offer remains in effect until two years after the repayment in full of the loan, or November 6, 2028. These rights may require us to first offer participation to the lender before pursuing opportunities with other third parties. As a result, our ability to raise capital or pursue other strategic alternatives could be delayed or limited. In addition, these rights may discourage other potential investors, lenders, or acquirers from engaging in transactions with us if they perceive that the existing lender has a blocking or preferential position. Any such limitations could adversely affect our ability to raise capital on favorable terms, pursue growth opportunities, or respond to changing business conditions.

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#### CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
We make forward-looking statements in this prospectus. In some cases, you can identify these statements by forward-looking words such as "may," "might," "should," "would," "could," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential" or "continue," and the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business.

The forward-looking statements in this prospectus are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. We believe that these factors include, but are not limited to the factors set forth under "Risk Factors." Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements.

In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this prospectus, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information.

Forward-looking statements contained in this prospectus include, but are not limited to, statements about:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to hire and retain qualified personnel, including senior management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to continue as a going concern;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our reliance on our name, reputation and product quality;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to adequately address increased demands that may be placed on our management, operational and production capabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the effectiveness of our sales and marketing activities and investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to obtain regulatory approvals necessary to distribute our products in the United States and other new markets, or to distribute additional products we develop in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the rate and degree of market acceptance of our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the availability of reimbursement for our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • estimates of our total addressable markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the timing or likelihood of regulatory filings and approvals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our expectations regarding the use of proceeds in this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the progress, timing, costs and results of our clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our growth plans, and our ability to successfully execute our growth strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • quarterly and seasonal fluctuations in our operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our success in retaining or recruiting, or changes required in, our officers, key employees or directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to protect our patents, trademarks and other intellectual property rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to comply with laws and regulations affecting our business;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • changes and developments relating to our regulatory landscape;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • claims, demands and lawsuits to which we are, and may in the future, be subject and the risk that our insurance or indemnities coverage may not be sufficient;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to operate, update or implement our IT systems;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to implement additional finance and accounting systems, procedures and controls in order to satisfy public company reporting requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to obtain additional financing when and if needed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the potential liquidity and trading of our common stock; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the future trading prices of our common stock and the impact of securities analysts' reports on these prices.

These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. You should read this prospectus and the documents that we reference in this prospectus and have filed as exhibits to the registration statement of which this prospectus forms a part with the understanding that our actual future results, levels of activity, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements.

These forward-looking statements speak only as of the date of this prospectus. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained in this prospectus after we distribute this prospectus, whether as a result of any new information, future events or otherwise.

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#### USE OF PROCEEDS
We estimate that the net proceeds to us from our issuance and sale of common stock in this offering will be approximately $ million (or approximately $ million if the underwriters exercise their over-allotment option in full), based upon the assumed initial public offering price of $ per share of common stock, after deducting underwriting discounts and commissions, and after estimated offering expenses payable by us.

The principal purposes of this offering are to provide capital to finance clinical trials, particularly for stroke and migraine indications, working capital, and other general corporate purposes. The Company's management will retain broad discretion over the allocation of the proceeds from this offering.

The Company expects that the funds raised in this offering, together with anticipated revenues from operations, will be sufficient to enable the Company to pursue its business objectives. There can be no assurance, however, that the Company will be able to maintain its development schedule or operating plan, or that the Company's anticipated cash needs will prove to be accurate. If current assumptions are not accurate, or other unforeseen conditions affecting the Company's business arise, there could be material changes to the Company's plan and the Company could find it advisable to allocate the offering proceeds in a manner different from that described above or to seek additional financing sooner than currently contemplated. No assurance can be made that any additional financing that may be required by the Company would be available from any source at all or on terms favorable or acceptable to the Company. See "Risk Factors — *We may require additional capital to pursue our business objectives. If such capital is not available to us, our business, financial condition and results of operations may be materially and adversely affected.*"

Assuming no exercise of the underwriters' over-allotment option, each $0.50 increase (decrease) in the assumed initial public offering price of $ per share would increase (decrease) the net proceeds to us from this offering by approximately $, assuming the number of shares offered, as set forth on the cover page of this prospectus, remains the same, and after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us. Similarly, a 250,000 increase (decrease) in the number of shares offered in this offering would increase (decrease) the net proceeds to us from this offering by approximately $, assuming that the price per share for the offering remains at $ and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us.

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#### DIVIDEND POLICY
We have not, since the date of our incorporation, declared or paid any dividends or other distributions on our common stock, and do not currently have a policy with respect to the payment of dividends or other distributions. We do not currently pay dividends and do not intend to pay dividends in the foreseeable future. The declaration and payment of any dividends in the future is at the discretion of our board of directors and will depend on numerous factors, including compliance with applicable laws, financial performance, working capital requirements of the Company and our subsidiaries, as applicable and such other factors as our directors consider appropriate.

Accordingly, you may need to sell your shares of our common stock to realize a return on your investment, and you may not be able to sell your shares at or above the price you paid for them. See "Risk Factors — Risks Related to this Offering."

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#### CAPITALIZATION
The following table sets forth our cash position and capitalization as of June 30, 2025:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • on an actual basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • on a pro forma basis after giving effect to the Series A Conversion described under "Series A Preferred Stock Conversion;" and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • on a pro forma as adjusted basis to give effect to the issuance and sale of an assumed 3,000,000 shares in this offering at an assumed initial public offering price of $5.00 per share, after deducting estimated underwriting discounts and estimated offering expenses payable by us, and the application of the net proceeds therefrom as described under "Use of Proceeds."

The information discussed below is illustrative only, and our cash and cash equivalents and capitalization following the consummation of this offering will adjust based on the actual initial public offering price and other terms of this offering determined at pricing. You should read this information in conjunction with our consolidated financial statements and the related notes included elsewhere in this prospectus, the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section, and other financial information contained in this prospectus.

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| | | | |
|:---|:---|:---|:---|
| | **Actual**  | **Pro Forma <br> for the Series A <br> Conversion**  | **Pro Forma as <br> Adjusted for <br> the Series A <br> Conversion <br> and Offering**  |
| **Cash**  | $48363 | $48363 | $13058363 |
| **Total Debt**  | 1165000 | 1165000 | 1165000 |
| **Stockholders' Equity (Deficit):** |  |  |  |
|  Series A Preferred Stock, par value $0.01; 4,000,000 shares authorized; 876,000 shares issued and outstanding, actual; no shares issued and outstanding, pro forma and pro forma as adjusted  | 8760 |  |  |
|  Common Stock, par value $.01 par value; 10,000,000 shares authorized, 5,867,425 shares issued and outstanding, actual; 6,743,425 shares issued and outstanding, pro forma; shares issued and outstanding, pro forma as adjusted  | 58674 | 67434 | 97434 |
| Additional paid-in-capital  | 5073638 | 5073638 | 18053638 |
| Accumulated deficit  | (6131630) | (6131630) | (6131630) |
| Total Stockholders' Equity (Deficit)  | $(990558) | $(990558) | $12019442 |
| Total Capitalization  | $174442 | $174442 | $13184442 |

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A $0.50 increase (decrease) in the assumed initial public offering price of $5.00 per share would increase (decrease) each of additional paid-in capital, total stockholders' equity and total capitalization by approximately $1.5 million, assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. We may also increase or decrease the number of shares we are offering. An increase (decrease) of 250,000 shares offered by us at an assumed offering price of $5.00 per share would increase (decrease) each of additional paid-in capital, total stockholders' equity and total capitalization by approximately $1.25 million, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us.

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#### SERIES A PREFERRED STOCK CONVERSION
Immediately prior to the closing of this offering, pursuant to a letter agreement, dated September [ ], 2025, holders our Series A Preferred Stock have agreed to convert all of their outstanding shares of Series A Preferred Stock into shares of our common stock (the "Series A Conversion") at a conversion price equal to the initial public offering price per share of common stock, prior to deduction of underwriting discounts and commissions. As a result of the Series A Conversion, all rights, preferences, and privileges associated with the Series A Preferred Stock, including board representation rights, liquidation preferences, anti-dilution adjustments, and preemptive rights, will terminate in accordance with the terms of the Series A Preferred Stock. No additional consideration is required to effect the Series A Conversion. The Series A Conversion will occur on a one-time basis in connection with this offering and will be effective immediately prior to closing. The number of shares of common stock to be outstanding immediately after this offering gives effect to the Series A Conversion.

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#### DILUTION
If you invest in this offering, your ownership interest will be diluted to the extent that the initial public offering price exceeds net tangible book value per share of our common stock immediately following this offering. Dilution results from the fact that the initial public offering price per share of common stock is substantially in excess of the net tangible book value per share attributable to the existing shareholders for our presently outstanding common stock. Our net tangible book value per share represents the amount of our total tangible assets less total liabilities, divided by the number of shares of common stock issued and outstanding.

As of June 30, 2025, our historical net tangible book deficit was $990,558, or $0.17 per share of our common stock. Our historical net tangible book deficit is the amount of our total tangible assets less our total liabilities. Our historical net tangible book deficit per share represents historical net tangible book deficit divided by the aggregate number of shares of our common stock outstanding as of June 30, 2025.

Our pro forma net tangible book deficit as of June 30, 2025, was $990,558, or $0.15 per share. Pro forma net tangible book deficit per share represents total tangible assets, less total liabilities, divided by the total aggregate number of shares of our common stock outstanding as of June 30, 2025, after giving effect to the Series A Conversion, which will occur immediately prior to the completion of this offering, as if it had occurred as of June 30, 2025.

After giving further effect to the issuance and sale by us of an assumed 3,000,000 shares of our common stock in this offering at the assumed initial public offering price of $5.00 per share and after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us, our pro forma as adjusted net tangible book value (deficit) as of June 30, 2025 would have been approximately $12,019,000, or $1.23 per share. This represents an immediate increase in pro forma net tangible book value to existing stockholders of $1.38 per share and an immediate dilution in pro forma net tangible book value to new investors of $3.77 per share. Dilution per share represents the difference between the price per share to be paid by new investors for the shares of our common stock sold in this offering and the pro forma as adjusted net tangible book value per share immediately after this offering.

The following table illustrates this dilution on a per share basis:

---

| | | |
|:---|:---|:---|
| Assumed Initial public offering price per share  |  | $5.00 |
| &nbsp;&nbsp;&nbsp; Historical net tangible book value per share as of June 30, 2025  | $(0.17) |  |
| &nbsp;&nbsp;&nbsp; Increase in pro forma net tangible book value per share to new investors  | $1.40 |  |
|  Pro forma as adjusted net tangible book value per share after giving effect to this offering  |  | $1.23 |
| Dilution per share to new investors in this offering  |  | $(3.77) |

---

The dilution information discussed above is illustrative only and may change based on the actual initial public offering price, the number of shares we sell, and other terms of this offering that will be determined at pricing.

If the underwriters exercise in full their option to purchase up to an assumed 450,000 additional shares of common stock, the pro forma as adjusted net tangible book value (deficit) per share of our common stock after this offering would be $1.40 per share, and the dilution per share to investors participating in this offering would be $3.60 per share, assuming the assumed initial public offering price of $5.00 per share.

A $0.50 change in the assumed initial public offering price of $5.00 per share would change our pro forma as adjusted net tangible book value per share after the offering by $(0.15) and change the dilution to new investors in this offering by $0.15 per share, assuming the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us.

The following table summarizes, as of June 30, 2025, on a pro forma as adjusted basis the number of shares of our common stock, the total consideration and the average price per share (i) paid to us by existing stockholders and (ii) to be paid by new investors acquiring our common stock in this offering at the

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assumed initial public offering price of $5.00 per share before deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us. As the table below shows, investors participating in this offering will pay an average price per share substantially higher than our existing stockholders paid.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Shares Purchased**  | **Shares Purchased**  | **Total Consideration**  | **Total Consideration**  | **Average Price <br> Per Share**  |
| | **Number**  | **Percent**  | **Amount**  | **Percent**  | **Average Price <br> Per Share**  |
| Existing shareholders<sup>(1)</sup>  | 6743425 | 69.2% | $5141072 | 28.3% | $0.76 |
| New investors  | 3000000 | 30.8% | $15000000 | 71.7% | $5.00 |
| **Total**  | 9743425 | 100.0% | $18151072 | 100.0% | $1.86 |

---

(1) Existing shareholders shares purchased, and total consideration includes 876,000 shares of common stock issuable upon conversion of 876,000 outstanding shares of Series A Preferred Stock in connection with the closing of the offering, which shares of Series A Preferred Stock were initially sold by us at purchase price of $5.00 per share.

Except as otherwise indicated, the discussion and the tables above assume no exercise of the underwriters' over-allotment option to purchase additional shares of common stock from us. If the underwriters exercise their over-allotment option to purchase additional shares of common stock from us in full, the percentage of our common stock held by existing shareholders would be 66.2%, and the percentage of our common stock held by new investors would be 33.8%.

A $0.50 increase in the assumed initial public offering price of $5.00 per share would increase the total consideration paid by new investors by $1.5 million and increase the percent of total consideration paid by new investors from 71.7% to 73.8%, assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting the estimated underwriting discount. Similarly, a $0.50 decrease in the assumed initial public offering price of $5.00 per share would decrease the total consideration paid by new investors by $1.5million and decrease the percent of total consideration paid by new investors from 71.7% to 69.1%, assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting the estimated underwriting discount.

The number of shares to be outstanding after this offering is based on: (i) 5,867,425 shares of common stock outstanding as of June 30, 2025, (ii) the conversion of all outstanding shares of Series A Preferred Stock into 876,000 shares of common stock in connection with closing of the offering, and (iii) 3,000,000 new shares of common stock issued in the offering. It excludes: (i) an assumed 450,000 shares subject to the underwriter overallotment, (ii) 276,000 shares underlying warrants to be issued in this offering, (iii) 450,643 shares of common stock reserved for issuance and 463,000 stock options issued and outstanding under the Encore Medical, Inc., 2018 Stock Incentive Plan, and (iv) 542,080 shares of our common stock issuable upon the exercise of issued and outstanding warrants.

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#### MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the financial statements and related notes to those statements included elsewhere in this prospectus. In addition to historical financial information, the following discussion and analysis contains forward-looking statements that involve risks, uncertainties, and assumptions. See "Cautionary Note Regarding Forward-looking Statements" included elsewhere in this prospectus. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including those discussed under "Risk Factors" and elsewhere in this prospectus.

#### Overview
We develop, manufacture, and market septal occlusion products, which are small, implantable devices delivered through a catheter inserted into a major blood vessel to permanently repair certain cardiac defects. To date, our products have been implanted in approximately 35,000 patients outside the United States. Procedures are performed in a cardiac catheterization lab and reduce the need for open-heart surgery or a lifetime of drug therapy, which are currently the alternative methods of treating these defects.

We obtained CE Mark approval for our products, which is a prerequisite for the general sale of medical devices in the European Union and are currently marketing and selling septal occlusion devices for the closure of certain cardiac defects in countries outside the United States.

Currently, we do not have regulatory approval to sell its products in the United States. However, we have completed significant steps required to obtain Class III market clearance for its patent foramen ovale ("PFO") septal occlusion device through the FDA investigational device exemptions ("IDE")/premarket approval ("PMA") application process. Such FDA approval will allow us to market out products throughout the United States.

#### Components of our Results of Operations

#### Net sales
Substantially all of our sales are generated from the sale of medical devices. We recognize revenue and transfer control to the customer when shipment of the medical device occurs. Medical devices are sold primarily through a direct sales force and through distributors.

#### Cost of goods sold and gross profit
Cost of goods sold consists of materials, personnel and related expenses, primarily related to our production team. Additional costs include allocated overhead, which includes facilities expenses, equipment and depreciation. We expect cost of goods sold to increase as we hire additional personnel in our production team to support our increasing manufacturing volume.

We calculate gross profit percent as gross profit divided by net sales. Our gross profit percentage has been and will continue to be affected by a variety of factors, primarily by our production team costs, the timing of hiring new production team members and training them to full productivity, the timing of our acquisition of new customers and pricing. Although, we expect our gross profit percentage to fluctuate from period to period, based upon the factors described above, we believe our gross profit percentage will increase over the long term as we leverage the increase in sales.

#### Operating expenses
 *Selling, general and administrative* 

Selling, general and administrative expenses consist of personnel and related expenses, related to selling and marketing, finance, information technology and human resources functions. Other expenses include sales commission, marketing initiatives, professional service fees (including legal, audit, accounting and tax fees), travel expenses, conferences, facilities expenses and other miscellaneous expenses.

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We expect that our selling, general and administrative expenses will increase in the future as a result of expanding our operations, including hiring personnel, to both drive and support anticipated growth as well as various incremental costs associated with operating as a public company. We expect that our costs will increase related to legal, audit, accounting fees, consulting fees, regulatory and tax-related services associated with maintaining compliance with stock exchange listing and SEC requirements, director and officer insurance costs, investor and public relations costs and other expenses that we did not incur as a private company. However, we expect selling, general and administrative expenses to decrease as a percentage of revenue primarily as, and to the extent, our revenue grows.

 *Stock compensation expense* 

Stock compensation expense is related to stock options issued under the 2018 Encore Medical, Inc. Equity Stock Incentive Plan. We record compensation expense for stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton option pricing model. The estimated grant date fair value is expensed over the requisite grant's service period.

 *Clinical trial expense* 

Clinical trial expenses relate to initial costs of our clinical trial. Our clinical trial expenses have been limited due to the Company's limited available funds. We expect clinical trial expenses to increase significantly after the Company completes this offering.

 *Regulatory expense* 

Regulatory expenses are incurred to meet numerous regulatory requirements in the numerous countries we sell product in. We expect our regulator expenses to increase as we expand into additional countries.

 *Interest expense* 

Interest expense consists of interest expense on our short term debt and Loan Agreement with Merit Medical Systems, Inc.

 *Provision for income taxes* 

Provision for income taxes consists of income tax expense related to U.S. federal, state and foreign jurisdictions. To date, we have not recorded any income tax expense. We have net deferred tax assets for U.S. federal income taxes for which we provide a full valuation allowance. Due to our history of net operating losses since inception, we expect to maintain a full valuation allowance in the foreseeable future due to uncertainties regarding our ability to realize these assets.

#### Results of Operations

#### Comparison of Six Months Ended June 30, 2025 and 2024
The following table summarizes our results of operations for the six months ended June 30, 2025 and 2024:

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| | | |
|:---|:---|:---|
| | **For the 6 Months Ended <br> June 30,**  | **For the 6 Months Ended <br> June 30,**  |
| | **2024**  | **2025**  |
|  | **(unaudited)**  | **(unaudited)**  |
| **Net Sales**  | $1047571 | $1010092 |
| **Cost of goods sold**  | 784796 | 602083 |
| **Gross profit**  | 262774 | 408008 |
| **Operating expenses** |  |  |
| &nbsp;&nbsp;&nbsp; Selling, general and administrative  | 535586 | 538533 |

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| | | |
|:---|:---|:---|
| | **For the 6 Months Ended <br> June 30,**  | **For the 6 Months Ended <br> June 30,**  |
| | **2024**  | **2025**  |
|  | **(unaudited)**  | **(unaudited)**  |
| &nbsp;&nbsp;&nbsp; Stock compensation expense  | 67257 | 8188 |
| &nbsp;&nbsp;&nbsp; Clinical trial expense  | 103305 | 56669 |
| &nbsp;&nbsp;&nbsp; Regulatory expense  | 24651 | 4964 |
| **Total operating expenses**  | 730799 | 608353 |
| **Operating loss**  | (468025) | (200345) |
| Non-operating expense |  |  |
| &nbsp;&nbsp;&nbsp; Interest expense  | 39629 | 40405 |
| &nbsp;&nbsp;&nbsp; Total non-operating expense  | 39629 | 40405 |
| **Net loss before income taxes**  | (507653) | (240750) |
| &nbsp;&nbsp;&nbsp; Income taxes  |  |  |
| **Net Loss**  | $(507653) | $(240750) |

---

#### Revenue:
Net sales for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, decreased $37,479 or 3.6%, to $1,010,092 compared to $1,047,571. This decrease was driven, in part, by the Company's focus on its IPO and fundraising activities.

#### Cost of Goods Sold:
Cost of goods sold decreased $182,713, or 23.2%, to $602,083 for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, due to decreases in raw material prices and more efficient production.

#### Gross Profit:
Gross profit increased to $408,008 during the six months ended June 30, 2025, compared to the six months June 30, 2024. Gross profit percentage was 40.4% for the six months ended June 30, 2025, up from 25.1% for the six months ending June 30, 2024. The increase in gross profit in 2025 is a result of lower raw material costs and efficiencies from improved manufacturing processes.

#### Selling, General and Administrative Expenses:
Selling, general and administrative expenses did not change significantly for the six months ended June 30, 2025, compared to the six months ended June 30, 2024.

#### Stock Compensation Expense:
Stock compensation expense decreased $59,069 to $8,188 for the six months ended June 30, 2025, compared to the six months ended June 30, 2024. Stock compensation expense decreased due to granting 25,000 options that vested immediately upon grant in the six months ended June 30, 2024.

#### Clinical Trial Expense:
Clinical trial expenses decreased $46,636, or 45.1%, to $56,669 for the six months ended June 30, 2025, compared to the six months ended June 30, 2024. Clinical trial expenses decreased due to limited resources to fund the clinical trial.

#### Regulatory Expense:
Regulatory expenses decreased $19,687 to $4,964 for the six months ended June 30, 2025, compared to the six months ended June 30, 2024. Regulatory expenses decreased due to the cyclical nature of regulatory items and a decrease in regulatory activities.

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#### Comparison of Years Ended December 31, 2024 and 2023
The following table summarizes our results of operations for the years ended December 31, 2024 and 2023:

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| | | |
|:---|:---|:---|
| | **For the Year Ended <br> December 31,**  | **For the Year Ended <br> December 31,**  |
| | **2024**  | **2023**  |
| **Net Sales**  | $2134528 | $1434424 |
| **Cost of goods sold**  | 1361077 | 912078 |
| **Gross profit**  | 773451 | 522346 |
| **Operating expenses** |  |  |
| &nbsp;&nbsp;&nbsp; Selling, general and administrative  | 1555653 | 1211152 |
| &nbsp;&nbsp;&nbsp; Stock compensation expense  | 696101 | 7936 |
| &nbsp;&nbsp;&nbsp; Clinical trial expense  | 142672 | 550570 |
| &nbsp;&nbsp;&nbsp; Regulatory expense  | 145297 | 124421 |
| **Total operating expenses**  | 2539723 | 1894079 |
| **Operating loss**  | (1766272) | (1371733) |
| Non-operating expense |  |  |
| &nbsp;&nbsp;&nbsp; Interest expense  | 79679 | 15124 |
| &nbsp;&nbsp;&nbsp; Total non-operating expense  | 79679 | 15124 |
| **Net loss before income taxes**  | (1845951) | (1386857) |
| &nbsp;&nbsp;&nbsp; Income taxes  |  |  |
| **Net Loss**  | $(1845951) | $(1386857) |

---

#### Revenue:
Net sales for the fiscal year ended December 31, 2024, compared to the fiscal year ended December 31, 2023, increased $700,104 or 48.8%, to $2,134,528, compared to $1,434,424. This increase was primarily driven by an increase in sales and marketing efforts and the addition of new markets outside the U.S., all of which drove increased customer usage and increased our customer base.

#### Cost of Goods Sold:
Cost of goods sold increased $448,999, or 49.2%, to $1,361,077 for the fiscal year ended December 31, 2024, compared to the fiscal year ended December 31, 2023, with the increase resulting primarily from the increase in sales.

#### Gross Profit:
Gross profit increased to $773,451 during the fiscal year end December 31, 2024, compared to the fiscal year ended December 31, 2023. Gross profit percentage was 36.2% for the fiscal year ended December 31, 2024, and 36.4% for fiscal year ending December 31, 2023. The increase in gross profit in 2024 is a result of improved manufacturing processes and volume increases.

#### Selling, General and Administrative Expenses:
Selling, general, and administrative expenses increased $344,501, or 28.4%, to $1,555,653 for the fiscal year ended December 31, 2024, compared to the fiscal year ended December 31, 2023. Selling, general, and administrative expenses increased due to a $475,538 write-off classified as a bad debt expense related to our prior affiliate and production arrangement with them.

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#### Stock Compensation Expense:
Stock compensation expense increased $688,165 to $696,101 for the fiscal year ended December 31, 2024, compared to the fiscal year ended December 31, 2023. Stock compensation expense increased due to granting 360,000 options that vested immediately upon grant.

#### Clinical Trial Expense:
Clinical trial expenses decreased by $407,898, or 74.1%, to $142,672 for the fiscal year ended December 31, 2024, compared to the fiscal year ended December 31, 2023. Clinical trial expenses decreased due to a lack of resources to fund the clinical trial.

#### Regulatory Expense:
Regulatory expenses increased by $20,876, or 16.8%, to $145,297 for the fiscal year ended December 31, 2024, compared to the fiscal year ended December 31, 2023. Regulatory expenses increased due to increased regulatory requirements associated with our transition to the new European Medical Device Regulations (MDR).

#### Cash flows

#### For the Years Ended December 31, 2024 and 2023
The following table summarizes our cash flows for the periods presented:

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| | | |
|:---|:---|:---|
| | **For the Year Ended <br> December 31,**  | **For the Year Ended <br> December 31,**  |
| | **2024**  | **2023**  |
| CASH FLOWS FROM OPERATING ACTIVITIES |  |  |
| Net loss  | $(1845951) | $(1386857) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp; Depreciation  | 6157 | 6161 |
| &nbsp;&nbsp;&nbsp; Amortization of debt discount  | 4375 | 625 |
| &nbsp;&nbsp;&nbsp; Stock based compensation  | 696101 | 7936 |
| &nbsp;&nbsp;&nbsp; Non-cash lease expense  | 4935 | 13832 |
| &nbsp;&nbsp;&nbsp; Accounts receivable  | (349472) |  |
| &nbsp;&nbsp;&nbsp; Accounts receivable – related party  | 381727 | 18171 |
| &nbsp;&nbsp;&nbsp; Inventory  | 92562 | (466160) |
| &nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets  | (15521) | (16445) |
| &nbsp;&nbsp;&nbsp; Accounts payable  | 328971 | 46470 |
| &nbsp;&nbsp;&nbsp; Accrued interest  | 75738 | 16658 |
| &nbsp;&nbsp;&nbsp; Accrued Expenses  | 158108 | 99157 |
| Net Cash Used in Operating Activities  | (462269) | (1660462) |
| CASH FLOWS FROM INVESTING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp; Purchases of property and equipment  |  | (12088) |
| Net Cash Used in Investing Activities  |  | (12088) |
| CASH FLOWS FROM FINANCING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp; Proceeds from short term debt  |  | 50000 |
| &nbsp;&nbsp;&nbsp; Deferred financing costs  |  | (5000) |
| &nbsp;&nbsp;&nbsp; Proceeds from long term debt  |  | 1000000 |
| &nbsp;&nbsp;&nbsp; Proceeds from sale of common stock  | 403826 |  |

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| | | |
|:---|:---|:---|
| | **For the Year Ended <br> December 31,**  | **For the Year Ended <br> December 31,**  |
| | **2024**  | **2023**  |
| &nbsp;&nbsp;&nbsp; Proceeds from issuance of Series A Preferred Stock  |  |  |
| Net Cash Provided by Financing Activities  | 403826 | 1045000 |
| Net Increase in Cash  | (58443) | (627550) |
| Cash at Beginning of Period  | 305272 | 932821 |
| Cash at End of Period  | $246829 | $305272 |

---

Net cash used in operating activities was $462,269 and $1,660,462 for the fiscal years ended December 31, 2024, and 2023, respectively. Cash used in operating activities increased primarily because of increases in accounts payable and accrued expenses in 2024. In 2023, the Company began to manufacture its own product, which resulted in a large increase in inventory and a decrease in available cash.

Net cash used in investing activities was $0 and $12,088 for the fiscal years ended December 31, 2024, and 2023, respectively. Cash used in investing activities in 2023 period was used to purchase equipment.

Net cash provided by financing activities was $403,826 and $1,045,000 for the fiscal years ended December 31, 2024, and 2023, respectively. The cash provided by financing activities for the fiscal year ended December 31, 2024, was due to the sale of common stock. The cash provided by financing activities for the fiscal year ended December 31, 2023, as due to long and short-term borrowings.

#### For the Six Months Ended June 30, 2025 and 2024
The following table summarizes our cash flows for the periods presented:

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| | | |
|:---|:---|:---|
| | **For the Six Months Ended <br> June 30**  | **For the Six Months Ended <br> June 30**  |
| | **2025**  | **2024**  |
|  | **(unaudited)**  | **(unaudited)**  |
| CASH FLOWS FROM OPERATING ACTIVITIES |  |  |
| Net loss  | $(240750) | $(507653) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp; Depreciation  | 3083 | 3079 |
| &nbsp;&nbsp;&nbsp; Amortization of debt discount  |  | 2500 |
| &nbsp;&nbsp;&nbsp; Stock based compensation  | 8188 | 67257 |
| &nbsp;&nbsp;&nbsp; Non-cash lease expense  | 1246 | 2868 |
| &nbsp;&nbsp;&nbsp; Accounts receivable  | (123638) | (115961) |
| &nbsp;&nbsp;&nbsp; Accounts receivable – related party  |  | 125673 |
| &nbsp;&nbsp;&nbsp; Inventory  | (21733) | (125233) |
| &nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets  | 21203 | (6549) |
| &nbsp;&nbsp;&nbsp; Accounts payable  | (41979) | 127259 |
| &nbsp;&nbsp;&nbsp; Accounts payable – related party  | 15305 |  |
| &nbsp;&nbsp;&nbsp; Accrued interest  | 40199 | 37397 |
| &nbsp;&nbsp;&nbsp; Accrued Expenses  | 25910 | 168133 |
| Net Cash Used in Operating Activities  | (312966) | (221230) |
| CASH FLOWS FROM INVESTING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp; Purchases of property and equipment  | (500) |  |
| Net Cash Used in Investing Activities  | (500) |  |

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| | | |
|:---|:---|:---|
| | **For the Six Months Ended <br> June 30**  | **For the Six Months Ended <br> June 30**  |
| | **2025**  | **2024**  |
|  | **(unaudited)**  | **(unaudited)**  |
| CASH FLOWS FROM FINANCING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp; Proceeds from short term debt  | 115000 |  |
| &nbsp;&nbsp;&nbsp; Deferred financing costs  |  | (2500) |
| &nbsp;&nbsp;&nbsp; Proceeds from long term debt  |  |  |
| &nbsp;&nbsp;&nbsp; Proceeds from sale of common stock  |  |  |
| &nbsp;&nbsp;&nbsp; Proceeds from issuance of Series A Preferred Stock  |  |  |
| Net Cash Provided by Financing Activities  | 115000 | (2500) |
| Net Increase in Cash  | (198466) | (223730) |
| Cash at Beginning of Period  | 246829 | 305272 |
| Cash at End of Period  | $48363 | $81542 |
|  <u>SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND</u> <u>FINANCING ACTIVITIES</u>  |  |  |
| Exercise of stock options upon settlement of accrued expenses  | $150000 | $— |

---

#### Six Months Ended June 30, 2025, compared to Six Months Ended June 30, 2024.
Net cash used in operating activities was ($312,966) and $(221,230) for the six months ended June 30, 2025, and 2024, respectively. Cash used in operating activities increased primarily because of a decrease in accounts receivable and an increase in accounts payable.

Net cash used in investing activities was $500 and $0 for the six months ended June 30, 2025, and 2024, respectively. Cash used in investing activities in 2025 was related to the purchase of equipment.

Net cash provided by financing activities was $115,000 for the six months ended June 30, 2025, compared to cash used in financing activities of $2,500 for the six months ended June 30, 2024. The cash provided in the three months ended June 30, 2025 was primarily due to short term borrowing.

#### Short-Term Debt
As of June 30, 2025, the Company's short-term debt consisted of a $50,000 unsecured promissory note with a board member, Chris Turnbull. The note, issued on October 11, 2023, bears interest at 10% and includes a 10% origination fee. The note matured on September 30, 2024, and is currently callable at the discretion of the lender.

On May 15, 2025, the Company obtained a $200,000 line of credit with Cardia, Inc. a related party. On June 30, 2025, $115,000 was drawn against the line of credit. The line of credit bears interest at 6% and matures on May 15, 2026, and can be renewed for additional terms by mutual agreement of both parties.

#### Merit Financing Agreement
On November 6, 2023, the Company entered into a Loan Agreement (the "Loan Agreement") with Merit Medical Systems, Inc. ("Merit") under which Merit loaned the Company $1 million (the "Loan"). The Company is subject to customary covenants under the Loan Agreement, including covenants relating to the delivery of periodic financial statements, notices with respect to defaults and other material events, compliance with applicable law, and limitations on debt, liens, and certain dispositions. Interest accrues on the principal amount of the Loan at the rate of 7% per annum. The loan matures on November 6, 2026, at which time all principal and interest will be due and payable. The Company's obligations under the Loan are evidenced by a promissory note and are secured by a security interest in the assets of the Company.

The Company entered into a Right of First Offer Agreement in connection with the Loan under which the Company agreed to provide Merit with an offer notice relating to any bona fide intention to offer

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new securities to third parties and afford Merit the opportunity to purchase or otherwise acquire, at the price and on the terms specified in the offer notice, all or any portion of such new securities. Merit's right of first offer remains in effect until two years after the repayment in full of the Loan, or November 6, 2028. Merit has waived its right of first offer with respect to the shares being sold in this offering.

#### Liquidity and Capital Resources
We have commenced this offering primarily to finance our U.S. clinical trials for the stroke and migraine indications, and for working capital purposes. To date, we have primarily funded our operations with cash flow from the sale of our products outside of the U.S. and proceeds from sales of our Series A Preferred Stock and common stock and borrowings under short-term promissory notes and long- term loans. We have incurred ongoing losses and negative cash flows from operations, including a net loss of $240,750 for the six months ended June 30, 2025, and a net loss of $1,845,951 during the year ended December 31, 2024. As of June 30, 2025, we had an accumulated deficit of approximately $6.1 million and negative equity of $990,558. Clinical trial expenses have decreased due to limited resources to fund the clinical trial, which is one of the primary reasons for completing this offering. We expect to incur losses in future periods as we continue to increase our expenses to complete our clinical trials and incur expenses associated with being a public company.

As of June 30, 2025, we had cash of $48,363, accounts receivable of $473,110, inventory of $395,330, and prepaid expenses of $19,361. At June 30, 2025, current assets amounted to $936,164 and current liabilities were $1,021,211, resulting in a working capital deficit of $85,047 (working capital defined as current assets minus current liabilities). Our working capital as of June 30, 2025 on a pro forma basis after giving effect to the issuance of shares of common stock by us in this offering and the receipt of approximately $13.0 million in net proceeds from the sale of such shares, after deducting underwriting discounts and commissions and estimated offering expenses payable by us would be a surplus of approximately $13.1 million.

Following this offering, we intend to fund our operational cash requirements with net proceeds from the sale of our common stock in this offering, supplemented by cash flows from our operating activities.

We believe that our capital resources following this offering will be sufficient to support our operations for at least the next twelve months. We have based this estimate on our current assumptions, which may prove to be wrong, and we may exhaust our available capital resources sooner than we expect. Our ability to continue as a going concern will be determined by our ability to generate sufficient cash flow to sustain our operations and/or raise additional capital in the form of debt or equity financing.

We currently do not have any committed sources of additional capital. The forecast of cash resources is forward-looking information that involves risks and uncertainties, and the actual amount of our expenses could vary materially as a result of a number of factors. We have based our estimates on assumptions that may prove to be wrong, and our revenue could prove to be less and our expenses higher than we currently anticipate. Management does not know whether additional financing will be available and on terms favorable or acceptable to us when needed. If we are unable to generate sufficient cash flow to fund our operations and adequate additional funds are not available when required, management may need to curtail expenses or sales and marketing efforts, which would adversely affect our business prospects, or we may be unable to continue operations.

If we raise additional funds by issuing equity securities, our shareholders will experience dilution. If we raise additional capital through debt financing, we may be subject to covenants that restrict our operations including limitations on our ability to incur liens or additional debt, pay dividends, repurchase our common stock, make certain investments, and engage in certain merger, consolidation or asset sale transactions. Any debt financing or additional equity that we raise may contain terms that are not favorable to us or our stockholders.

#### Quantitative and Qualitative Disclosures about Market Risk
We are exposed to market risks in the ordinary course of our business. Market risk represents the risk of loss that may impact our financial position due to adverse changes in the financial market process and

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rates. Our market risk exposure is primarily the result of foreign currency exchange rates and their impact on our business conducted in foreign markets.

Our reporting currency is the U.S. dollar. Gains or losses due to transactions in foreign currencies are reflected in the consolidated statement of operations under the line-item other income (expense), net. We have not engaged in the hedging of foreign currency transactions to date, although we may choose to do so in the future.

#### Critical Accounting Estimates
Management uses estimates and assumptions in preparing these financial statements in accordance with accounting principles generally accepted in the United States of America. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates.

Significant accounting policies are fully described in the footnotes to our audited financial statements, we believe that the following accounting policies and estimates are critical to our business operations and understanding of our financial results.

#### Revenue Recognition
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • The Company determines revenue recognition through the following steps:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Identification of the contract or contracts with a customer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Identification of performance obligations in the contract

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Determination of the transaction price

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Allocation of the transaction price to the performance obligations in the contract

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Recognition of revenue when or as the Company satisfies the performance obligations

Revenue is generated from the sale of medical devices. The Company recognizes revenue and transfers control to the customer when shipment of the device occurs. Shipping and handling activities are considered activities to fulfill the promise to transfer the products.

Products are sold primarily through a direct sales force and through distributors. Terms of sale are generally consistent for both end-users and distributors, except that payment terms are generally net 30 days for end-users and net 60 days for distributors, with some exceptions. The Company does not maintain any post-shipping obligations to customers; no installation, calibration or testing of products is performed subsequent to shipping in order to render products operational. The Company expects to be entitled to the total consideration for the products ordered as product pricing is fixed, and there are no adjustments for a significant financing component as payment terms fall within one year. The Company excludes taxes assessed by governmental authorities on revenue-producing transactions from the measurement of the transaction price.

Costs associated with product sales include commission expenses. There are no royalty expenses. As revenue from product sales are recognized at a point in time, commissions expenses are recognized as incurred. Commissions expenses are included in selling, general and administrative expenses in the statements of operations.

#### Inventories
Inventories include raw materials, work in process and finished goods and are stated at the lower cost (first-in, first-out method) or net realizable value. The Company's industry is characterized by rapid product development and frequent new product introductions. Uncertain timing of regulatory approvals, variability in product launch strategies and variation in product sales all impact inventory reserves for excess, obsolete and expired products. An increase to inventory reserves results in a corresponding increase in cost of goods sold in the statement of operations. Inventories are written off against the reserve when they are physically disposed.

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#### Income Taxes
The Company accounts for income taxes using the asset and liability method, as required by the accounting standard for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases along with operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities from a change in tax rates is recognized in the statements of operations in the period that includes the enactment date.

The Company's estimate of the valuation allowance for deferred income tax assets requires significant estimates and judgments about future operating results. Deferred income tax assets are reduced by valuation allowances if, based on the consideration of all available evidence, it is more-likely-than-not that a deferred income tax asset will not be realized. Significant weight is given to evidence that can be objectively verified. The Company evaluates deferred income tax assets on an annual basis to determine if valuation allowances are required by considering all available evidence. Deferred income tax assets are realized by having sufficient future taxable income to allow the related tax benefits to reduce taxes otherwise payable. The sources of taxable income that may be available to realize the benefit of deferred income tax assets are future taxable income, future reversals of existing taxable temporary differences, taxable income in prior carryforward years and tax planning strategies that are both prudent and feasible. In evaluating the need for a valuation allowance, the existence of cumulative losses since inception is significant objectively-verifiable negative evidence that must be overcome by objectively-verifiable positive evidence to avoid the need for a valuation allowance. The Company's valuation allowance offsets all net deferred income tax assets as it is more-likely-than-not that the benefit of the deferred income tax assets will not be recognized in future periods. The Company has not reclassified income tax effects of the Tax Cuts and Jobs Act within accumulated other comprehensive (loss) income to accumulated deficit due to its full valuation allowance.

The Company recognizes the impact of an uncertain tax position in its financial statements if, in management's judgment, the position is more-likely-than-not sustainable upon audit based on the position's technical merits. This involves the identification of potential uncertain tax positions, the evaluation of applicable tax laws and an assessment of whether a liability for an uncertain tax position is necessary.

#### Stock-Based Compensation
The Company records compensation expense for stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton ("BSM") option-pricing model. The estimated grant date fair value is expensed over the requisite grant's service period as stock-based compensation expense. The Company uses historical data from comparable medical device companies, among other factors, to estimate the expected price volatility. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the estimated life of the option. The expected term of stock options represents the weighted-average period the stock options are expected to remain outstanding. The Company does not have sufficient historical exercise and post-vesting termination activity to provide accurate data for estimating the expected term of options and has opted to use the "simplified method," whereby the expected term equals the arithmetic average of the vesting term and the original contractual term of the option. The Company accounts for forfeitures as they occur.

#### Accounting Standards and Recent Accounting Pronouncements
See Note 2 (Summary of Significant Accounting Policies) to our audited financial statements for a discussion of recent accounting pronouncements.

#### Emerging Growth Company Status
Pursuant to the JOBS Act, a company constituting an "emerging growth company" is, among other things, entitled to rely upon certain reduced reporting requirements and is eligible to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. We are an emerging growth company and have elected to use this extended transition period for complying

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with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. Our financial statements may, therefore, not be comparable to those of other public companies that comply with such new or revised accounting standards.

#### Certain Relationships and Related Party Transactions
In addition to the compensation arrangements discussed in the sections titled "Management" and "Executive Compensation," the following is a description of each transaction since January 1, 2022, and each currently proposed transaction in which we have been or are to be a participant, the amount involved exceeded or exceeds $120,000 and any of our directors, executive officers or holders of more than 5% of our outstanding capital stock, or any immediate family member of, or person sharing the household with, any of these individuals or entities, had or will have a direct or indirect material interest:

The Company and Cardia, Inc. ("Cardia") have entered into and maintain a contract manufacturing agreement which expires on December 31, 2025 and may be renewed by mutual agreement of the parties. This agreement facilitates the transition and separation of the two companies as a result of the Spin Out (as defined herein) of the Company from its former parent company, Cardia (see "Business; Overview") and reflects Cardia's transfer of its manufacturing facilities and authorities to the Company. Due to the complexities and timing of the required regulatory approval transfers and government regulations, the agreement provides for the Company to continue to manufacture Cardia's Left Atrial Appendage product family and delivery system until Cardia recreates a manufacturing facility and approvals in its own name. The agreement further provides for Cardia to continue to sell certain of the Company's products to fulfill existing supply contracts in Cardia's name through their expiration while both companies pursue a complete and perfect separation. Under this agreement, the Company manufactures and sells Cardia's LAA product to Cardia at an agreed-upon contract transfer price, in quantities as may be requested by Cardia from time to time; and Cardia purchases and sells the Company's ASD product through remaining supply contracts at an agreed-upon contract transfer price. Either party may terminate the agreement with 30 days' notice, with or without cause. For more information, see Note 11. Related Party Transactions to our audited financial statements included elsewhere in this prospectus.

As a result of the Spin Out (see "Business; Overview"), several of Encore Medical, Inc.'s officers, directors, and employees have previously been employed by Cardia and were temporarily employed by both companies during the transition. In particular, Mr. Turnbull continues to be a director, and Mr. Marino continues to be a director and the acting CEO of Cardia, Inc. during this transition period.

On May 15, 2025, the Company obtained a $200,000 line of credit with Cardia. At June 30, 2025, $115,000 was drawn against the line of credit. The line of credit bears interest at 6% and matures on May 15, 2026 and can be renewed for additional terms by mutual agreement of both parties.

The Company has entered into a unsecured promissory note in the aggregate principal amount of $50,000 with a board member, Chris Turnbull. The note, issued on October 11, 2023, bears interest at 10% and includes a 10% origination fee. The note matured on September 30, 2024, and is currently callable at the discretion of the lender.

#### Our Policy Regarding Related Party Transactions
Prior to the completion of this offering, we intend to adopt a written policy that our executive officers, directors, nominees for election as a director, beneficial owners of more than 5% of any class of our common stock and any members of the immediate family of any of the foregoing persons are not permitted to enter into a related party transaction with us without the approval or ratification of our board of directors or our audit committee. Any request for us to enter into a transaction with an executive officer, director, nominee for election as a director, beneficial owner of more than 5% of any class of our common stock or any member of the immediate family of any of the foregoing persons, in which the amount involved exceeds $120,000 and such person would have a direct or indirect interest, must be presented to our board of directors or our audit committee for review, consideration and approval. In approving or rejecting any such proposal, our board of directors or our audit committee is to consider the material facts of the transaction,

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including whether the transaction is on terms no less favorable than terms generally available to an unaffiliated third party under the same or similar circumstances and the extent of the related party's interest in the transaction.

#### Director and Officer Insurance
We maintain a general liability insurance policy that covers certain liabilities of directors and officers of our corporation arising out of claims based on acts or omissions in their capacities as directors or officers. We may also enter into indemnification agreements with our directors and officers, which would include, among other things, the right to have expenses advanced in connection with indemnifiable proceedings.

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#### BUSINESS

#### Overview
We develop, manufacture, and market septal occlusion devices for the repair of certain cardiac defects. To date, our products have been implanted in approximately 35,000 patients outside the United States.

Encore Medical, Inc. ("Encore" or the "Company") was formed in 2017 as a wholly owned subsidiary of Cardia, Inc. ("Cardia") and operated Cardia's septal occlusion business until October 1, 2020, when it was spun off in a tax-free distribution to Cardia's shareholders under Section 355 of the Internal Revenue Code of 1986, as amended (the "Spin Out").

As part of the Spin Out, Encore received and now wholly owns the assets of Cardia's septal occlusion business, including the complete PFO and ASD product portfolios, associated patents, regulatory approvals, revenue streams, manufacturing operations, related R&D projects, proprietary knowledge, and supporting infrastructure. Cardia had previously obtained ISO certification and held intellectual property and regulatory approvals for these products. As part of the separation, these rights, certifications, and approvals were either transferred to Encore or separately obtained by Encore, such that Encore now independently owns the relevant intellectual property and maintains its own ISO and regulatory approvals.

Encore continues to build on this legacy as an independent company focused on the further development, commercialization, and global expansion of its septal occlusion devices.

#### Our Products
Septal occlusion devices are small, implantable devices that are delivered through a catheter inserted into a major blood vessel to repair certain cardiac defects in both adults and children. These closure devices are capable of providing an effective, nonsurgical method of correcting a variety of cardiac defects. Our primary closure device is designed to correct a cardiac defect, generally diagnosed in adulthood, known as a patent foramen ovale ("PFO"). The PFO defect is an abnormal passage or flap-like hole between the atrial chambers of the heart that can enable embolic material (clots) to travel from the right to left chambers and potentially cause a stroke. We also currently market and sell septal occlusion devices for the transcatheter closure of atrial septal defects (ASD). The ASD defect is an opening in the atrial septum that divides the right and left atria. This defect can be corrected in both children and adults but is predominantly corrected during childhood. The procedure for implantation of these devices is performed in a cardiac catheterization lab and is intended to reduce the need for open heart surgery or a lifetime of drug therapy, which previously were the traditional methods of treating these defects. The procedure can generally be accomplished in approximately 30 minutes, and patients typically go home the same day or the next morning. In addition to sparing patients the pain and long hospital stays that are typically associated with open heart surgery, septal occlusion devices offer significant cost savings, such as a lifetime of blood-thinning drugs/medication, or the costs of treating possible recurrent strokes. The cost of open-heart surgery can be up to 3 times the cost of percutaneous closure of the PFO or ASD defects. Additionally, the cost of a lifetime of blood thinners can be up to 8 times higher for a patient, not including the cost of possible bleeding complications, drug interactions, and the need for additional specialist care.

The actual costs for reimbursement for open heart surgery, as compared to percutaneous closure of septal defects, are in the range of approximately $40,000 to $90,000 for total reimbursement to the facility and providers combined. Transcatheter closure reimbursements range from $30,000 to $60,000, and typically, an overnight hospital stay is not required. Heart surgery can also require ongoing medication that could exceed $200,000 over a person's lifetime. Other costs that can make heart surgery more expensive include hospitalizations relating to bleeding complications, drug interactions, and additional specialist care.

We currently sell and market septal occlusion devices for the closure of cardiac defects in countries outside of the United States. We believe the potential market for our PFO closure devices is significantly larger than the market for our other closure devices. Sales of our PFO devices account for approximately 90% of our current revenue. The overall market for ASD closure is smaller than that for PFO closure and currently accounts for approximately 10% of our revenue. We expect to continue devoting significant attention to the ongoing manufacturing, sales, marketing and regulatory approvals of our PFO closure devices.

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We have received an Investigational Device Exemption (IDE) from the U.S. FDA and are enrolling patients in our PerFOrm clinical trial; however, we require additional funds to accelerate this trial in an effort to gain FDA clearance and sell these devices in the U.S. Our FDA approved US clinical trial requires a total enrollment of 500 patients (250 implanted with our device (the device group) and 250 implanted with existing market approved devices (the control group)) and follow-up of six months. The trial endpoints are safety and efficacy. Following full enrollment and patient follow-up, which is expected to take approximately 18 – 24 months to complete, the company must then submit its PMA application to FDA for final approval.

We also market and sell delivery systems for use in conjunction with our septal occlusion devices. These systems are used specifically to deploy our septal occlusion devices during the catheterization procedure. These systems include a variety of components we manufacture in the U.S. including delivery sheaths, dilators, loading devices, delivery forceps and other components required for use in the delivery procedure. These delivery systems are manufactured in a variety of sizes to accommodate different occluder sizes.

#### Estimated Market Potential

#### Cryptogenic Stroke
Our primary focus is on the PFO closure market. While there is no current consensus on the size of the adult closure market, it is reported that a PFO defect occurs in approximately 25% of the adult population. Most people who have a PFO defect suffer no symptoms and therefore require no treatment. However, a significant number of individuals experience a cryptogenic stroke (a stroke of undetermined origin) which in turn may lead to the discovery and implication of a PFO defect. Approximately 50% of patients who suffer a cryptogenic stroke are subsequently found to have a PFO defect. If the defect is not closed, these individuals may be subject to repeated strokes that may lead to disability or death. We estimate that approximately 250,000 cases per year worldwide require immediate closure of PFO due to cryptogenic stroke. Our PFO devices sell outside the United States for retail prices ranging from $2,000 to $4,000 each. In the United States, the average retail price is approximately $11,000.

Our PFO device and other products require FDA approval to be marketed in the United States. See "Risk Factors — Risks related to Regulation" and "Business — Government Regulation." Several U.S. FDA clinical trials have been conducted by our competitors to prove the causal relationship between the PFO defect and cryptogenic stroke. On October 28, 2016, St. Jude Medical (now Abbott) was awarded FDA approval to begin marketing its PFO products in the United States. Subsequently, two additional separate long-term PFO trials conducted by W.L. Gore and the French Ministry of Health were both completed with favorable results. We believe the results from these trials will have a significant positive impact on the prospects and market potential for our PFO products. We believe the market for our products is still in its infancy as medical reimbursement in the U.S. was established in late 2019, just prior to the COVID-19 pandemic, which curtailed elective medical procedures.

Patent Foramen Ovale closure procedures in the United States are typically reimbursed under specific Current Procedural Terminology (CPT) and ICD-10 codes, depending on the nature of the treatment and associated conditions. The primary CPT code used for transcatheter closure of a PFO is 93580 ("Percutaneous transcatheter closure of congenital interatrial communication").

Encore's PFO IDE trial — known as the PerFOrm Trial (NCT05537753, IDE G220115) has received CMS Category B IDE coverage approval in April 2023. This means providers can be reimbursed for routine costs (e.g., imaging, office visits, applicable CPT procedures) associated with the trial, provided CMS or a Medicare Administrative Contractor (MAC) issues a Local Coverage Determination (LCD) that includes G220115.

#### Migraine Headache
In medical literature, the PFO defect has also been associated with migraine headaches. Studies have shown that migraine sufferers have almost twice the rate of PFO occurrence than the general population. Published retrospective studies have further shown that large numbers of patients who routinely suffered from migraine before their PFO closure for stroke, have reported elimination or significant reduction in frequency or severity of their migraine headaches following PFO closure.

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The U.S. FDA considers PFO closure for treatment of migraine headache to be a separate indication from PFO closure for stoke prevention and therefore requires a separate FDA clinical trial proving safety and efficacy. Currently, we are involved in conducting a clinical study outside the U.S. utilizing our PFO device to demonstrate its clinical effectiveness in eliminating or reducing migraine headaches. The design of this study is primarily based on the trial design we believe will be required by the U.S. FDA. Upon the successful conclusion of this study, we intend to apply for U.S. FDA IDE approval to conduct a U.S. clinical trial to gain approval to market our PFO device in the United States for the treatment of migraine headaches. The Encore device used for treating cryptogenic stroke is the same device used for treating PFO-related migraines.

Over 45 million people in the U.S. are reported to suffer from migraine headaches, which indicates that the estimated market potential for PFO closure for migraine relief may be quite large. Estimates show the potential market for migraine-related PFO closure to be in excess of ten million patients in the US, with current average retail prices approximating $11,000 per device, which we believe represents a potential multi-billion-dollar market opportunity. However, there is currently no consensus on the total size of this potential market and, significantly, there can be no assurance of any kind that a causal relationship will ultimately be proven between PFO and migraine headaches. See "Risk Factors — Potential Negative Impact of FDA Studies."

#### ASD
The estimated market potential for our ASD closure products is smaller than the market potential for our PFO products. Based on existing marketplace sales, the natural incidence of ASD and the prevalence of uncorrected ASD in the general population, we estimate the total potential worldwide market for our ASD products to be approximately 50,000 cases per year. The Company's ASD products also sell outside the U.S. for retail prices ranging from $2,000 to $4,000 each.

#### Strategy
We obtained CE Mark approval in connection with the Spin Out and are selling and marketing our PFO and ASD devices and accessories throughout the EU and other countries outside the United States. We intend to continue our overseas sales and marketing efforts, and we also plan to develop and pursue the sales and marketing of our products in the United States.

We plan to continue to devote significant effort to achieve U.S. FDA approval to market our septal occlusion products within the United States. These efforts will focus initially on conducting the necessary steps to gain U.S. FDA approval of our PFO device and related delivery systems for the stroke and migraine indications. Approval to sell Class III medical devices in the United States can be a time-consuming and costly process. See "Risk Factors — Risks related to Regulation." We must utilize professional clinical research organizations, leading physicians, and other experts to formulate and pursue our strategy for gaining regulatory approvals. Currently, Abbott Laboratories and W.L. Gore are the only companies with FDA approval to sell PFO devices in the United States. We intend to diligently and assertively complete the necessary requirements to achieve FDA approval for our PFO products and plan to enter the U.S. market as soon as possible.

#### Marketing, Sales and Distribution
Sales and marketing efforts for our product lines have been focused on the European market and other countries where we maintain the CE Mark and other certifications necessary to market our products. We sell our products through a distribution network that consists of independent distributors and limited direct sales personnel. Currently, we have sales distribution in Germany, France, Italy, Spain, Portugal, Switzerland, Poland, Turkey, Czech Republic, Iraq and several other countries. We are not currently marketing or selling any products in the United States, which we believe will be necessary in order to fully achieve our plans for growth and profitability. We have received an Investigational Device Exemption (IDE) from the U.S. FDA and are enrolling patients in our PerFOrm clinical trial, which we expect to take approximately two years to complete. See "Business — Government Regulation" and "Risk Factors — Risks related to Regulation." The Company expects to use direct sales personnel or enter into a strategic relationship in the United States if and when sales are permitted.

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#### Research and Development
Our ongoing plans for research and development include continual refinement and evolution of our current devices, expansion of our delivery systems and other supporting products, and the development of devices for new or related applications, such as left heart failure. We conduct our research and development primarily using our own internal engineering and other personnel and supplement this approach by engaging outside professional firms as necessary. Generally, product design, engineering, prototyping, testing and manufacturing are completed internally, while biological and compatibility testing, package testing, sterilization and animal pilot studies are conducted externally. It is our policy, whenever possible, to develop intellectual property protection on all of our products and processes and we currently hold numerous patents regarding our technology. See "Patent, Trademarks and Proprietary Rights." No assurance can be given, however, that we will be successful in obtaining or maintaining market acceptance of any new products. See "Risk Factors — Risks related to Our Industry."

#### Competition
The medical device industry is highly competitive. Many companies and institutions that have developed or acquired competing products or technologies are larger and have substantially greater resources, more extensive experience and greater development, marketing and support capabilities than we do. The market for septal occlusion devices has been dominated by Abbott. Additional competitors in the cardiac defect closure field include W. L. Gore & Associates (Gore Medical) and Occlutech AB. We believe our products can compete successfully against other devices due to their distinctive features and benefits. Compared to competing first generation devices, our devices use less metal, allow for a flatter profile, are self-loading, fully retrievable, produce less cardiac arrythmias and allow for future septal puncture procedures. Physicians have noted these significant features as differentiators of our products, and in a peer-reviewed dual-center study, "*Dual-center experiences with interventional closure of patent foramen ovale: A medium-term follow-up study comparing two patient groups aged under and over 60 years*," our device demonstrated superior results compared to Abbott and Occlutech (Becker et al., Clinical Cardiology, 2021). However, our competitors have greater resources and may be able to penetrate these markets in Europe and the United States sooner than we can, or have already in some cases penetrated these markets. Although we believe our devices are based on sound and competitive technology, there can be no assurance that our present products will be able to compete successfully with existing or future competitive products or that we will be able to develop or acquire additional products or otherwise effectively respond to new products or technological advances developed by competitors. See "Risk Factors — Risks related to Our Industry."

#### Government Regulation
Government regulation in the United States and other countries is a significant factor in the development and marketing of our products and in our ongoing manufacturing and research and development activities. We and our products are regulated by the FDA under a number of statutes, including the Federal Food, Drug and Cosmetic Act.

Under the Federal Food, Drug and Cosmetic Act, medical devices are categorized into one of three classes, Class I, II or III, on the basis of the controls deemed necessary to reasonably ensure their safety and effectiveness. Class I devices are subject to the least extensive controls, as the safety and effectiveness reasonably can be assured through general controls such as labeling, premarket notification and adherence to the FDA's good manufacturing practices. For Class II devices, safety and effectiveness can be assured through the use of special controls, such as performance standards, post-market surveillance, patient registries, and FDA guidelines. Class III devices, which are life-sustaining or life-supporting implantable devices, or new devices that have been found not to be substantially equivalent to legally marketed devices, require the highest level of control, generally requiring premarket approval by the FDA to ensure their safety and effectiveness. All companies subject to FDA regulation must comply with a variety of rules, including the FDA's good manufacturing practices regulations, and are subject to periodic inspections by the FDA and other applicable agencies. If the FDA believes that its regulations have not been fulfilled, it may implement extensive enforcement powers, which were strengthened by the enactment of the Safe Medical Devices Act of 1990. The FDA's powers include, but are not limited to, the ability to ban products from the market, prohibit the operation of manufacturing facilities and order recalls of products from customer locations.

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If a manufacturer or distributor of medical devices can establish that a proposed device is "substantially equivalent" to a legally marketed Class I or Class II medical device or to a Class III medical device for which the FDA has not required a premarket approval application, the manufacturer or distributor may seek FDA marketing clearance for the device by filing a 510(k) notification. Following submission of the 510(k) notification, the manufacturer or distributor may not place the device into commercial distribution in the United States until an order has been issued by the FDA. The FDA's target for issuing these orders is within 90 days of submission, but the process can take significantly longer. The order may declare the FDA's determination that the device is "substantially equivalent" to another legally marketed device and allow the proposed device to be marketed in the United States. The FDA may, however, determine that the proposed device is not substantially equivalent or may require further information, such as additional test data, before making a determination regarding substantial equivalence.

If a manufacturer or distributor of medical devices cannot establish that a proposed device is substantially equivalent to another device via the 510(k) process, the manufacturer or distributor must seek premarket approval of the proposed device. A premarket approval application must be submitted, supported by extensive data, including preclinical and clinical trial and follow-up data, to prove the safety and efficacy of the device. Generally, a company is required to obtain an investigative device exemption before it commences clinical testing in the United States in support of a premarket approval application. The FDA monitors and oversees the use and distribution of such "research use only" and "investigational use only" products. Although by statute, the FDA has 180 days to review a premarket approval application once it has been accepted for filing, during which time an advisory committee may also evaluate the application and provide recommendations to the FDA, premarket approval application reviews often extend over a significantly protracted time period, usually 12 to 24 months or longer from filing. Accordingly, the FDA review of any premarket approval application we submit may encounter prolonged delays and the data collected and submitted in our premarket approval application may not be found to support approval.

We intend to request Class III market clearance for our cardiac closure devices through the FDA's investigational device exemptions ("IDE") / premarket approval ("PMA") application process. In September 2022 the FDA granted us IDE approval, which allowed us to begin our Class III clinical trial in the United States. We believe this trial will take approximately two years to complete. Although we are optimistic about our ability to ultimately obtain final approval from the FDA, there can be no assurance that we will not experience prolonged delays or that the FDA would ultimately find our submission satisfactory. Moreover, even if we satisfy the FDA's conditions and complete our clinical trial, there can be no assurance of any kind that such trials will yield sufficient results to allow commercial sales to ever be made in the United States.

The FDA and the Federal Trade Commission have the power to scrutinize labeling and promotional activities. The FDA also imposes post-marketing controls on our products, and registration, listing, medical device reporting, post-market surveillance, device tracking and other requirements on medical devices. If we fail to meet these FDA requirements or receive adverse FDA determinations regarding our clinical and preclinical trial, we and our employees could be subject to injunction, prosecution, civil fines, seizure or recall of products, prohibition of sales, or suspension or withdrawal of any previously granted approvals.

The Federal Food, Drug and Cosmetic Act regulates our quality control and manufacturing procedures by requiring us and our contract manufacturers to demonstrate compliance with current good manufacturing practices as specified in published FDA regulations. The FDA monitors compliance with good manufacturing practices by requiring manufacturers to register with the FDA, which subjects them to periodic unannounced FDA inspections of manufacturing facilities. We must be registered with the FDA to pursue U.S. sales of our products and be subject to such inspections on a periodic basis. Continued marketing of our products may be adversely affected if violations of applicable regulations are noted during FDA inspections of our manufacturing facilities or the facilities of our contract manufacturers. These regulations are subject to change and depend heavily on administrative interpretations. Future changes in regulations or interpretations made by the FDA or other regulatory bodies, with possible retroactive effects, may affect us in an adverse manner.

Sales of medical devices outside of the United States are subject to United States export requirements and foreign regulatory requirements. Legal restrictions on the sale of imported medical devices vary from country to country. The time required to obtain approval by a foreign country may be longer or shorter than

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that required for FDA approval, and the requirements may differ. For countries in the European Union, certification procedures are available for medical devices, the successful completion of which allows the certified devices both to be shipped from the United States and to be placed on the market in most European countries. Medical devices may not be sold in a general manner in Europe unless they display a mark indicating compliance with these procedures. The CE mark represents regulatory approval in the European Union. We obtain and maintain CE mark approval on our septal occlusion products. There can be no assurance that we will be able to obtain regulatory approvals or clearances for our products in any foreign country that we may seek to enter in the future.

No assurance can be given that the FDA or other regulatory authorities will give on a timely basis, if at all, the requisite approvals for medical products we currently have under development or that we may develop in the future. Even if approvals are received, the process of obtaining clearance to market medical products is costly and time consuming and can delay the marketing and sale of our products. Further, federal, state, foreign and other regulations regarding the manufacture and sale of medical devices are subject to change. We cannot predict what impact these changes, if any, might have on our business, financial condition or results of operations. See "Risk Factors."

#### Manufacturing Operations
We manufacture and assemble all of our products in the U.S. Certain components of our products are manufactured by other third-party vendors. We assure that our vendors have received certification that their manufacturing facilities comply with European standards for quality assurance and manufacturing process control. We have developed multiple sources for raw materials and component vendors. We are not limited with respect to sources or availability of raw materials to manufacture our products. We have the capacity to scale our operations, but we intend to develop additional internal manufacturing capabilities as may be required or advisable based on volume, complexity and other variables.

#### Patents, Trademarks and Proprietary Rights
We diligently pursue patent protection on our products, processes and technologies. Currently, we have 9 granted and issued U.S. patents pertaining to our septal occlusion products and technologies. Two of our patents which comprehensively cover the most important aspects of our PFO and ASD products have remaining useful lives of 16 years and 6 years, respectively.

There can be no assurance that additional patents will be granted on products we are developing or plan to develop in the future, or that the patents we were issued in the past or in the future will be of material benefit, or that we will have sufficient resources to enforce our patent rights. Nor can there be any assurance that our products do not and will not infringe on patents, copyrights or other proprietary information known or claimed by others, or that others will not successfully utilize part of or all of our technologies without compensation to us. If we are found to have infringed on the rights of a third party, we may be unable to market our products without a license from such third party. There can be no assurance that we would be able to obtain such a license on satisfactory terms, or at all.

We also rely on trade secrets and proprietary know-how to protect our products and have internal security and secrecy measures. We have not historically used employment agreements, but may utilize such measures in the future as we may deem necessary.

#### Product Liability Insurance
Our business entails an inherent risk of product liability claims. Any product liability claim could have a material adverse impact on us and our prospects. We currently maintain product liability insurance with coverage of $5,000,000 per occurrence and an annual aggregate maximum of $5,000,000. There is no assurance, however, that such insurance coverage will continue to be available to us at affordable rates, if at all. There can also be no assurance that our existing insurance and future insurance, if available, would cover or be sufficient to cover all claims that may be brought against us. A liability claim, even one without merit, could result in significant legal defense costs, which would increase our expenses and result in increased losses. See "Risk Factors — Risks related to Our Business."

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#### Employees
We currently employ 16 people, including 10 employees in manufacturing, one employee in each of research and development, quality assurance, clinical and regulatory, and sales and marketing, and two employees in finance and administration.

#### Properties
On February 3, 2023, the Company entered into a lease with a third party for approximately 7,500 square feet of office, manufacturing, and warehouse space at 2975 Lone Oak Drive, Suite 140, Eagan, Minnesota. The lease terminates on May 31, 2029. Monthly rental payments are approximately $13,000 and vary with certain costs associated with the leased facilities, such as real estate taxes, utilities, and maintenance expenses. We believe our present facilities are in good condition, are adequate for current operations, and provide ample capacity to scale up.

#### Legal Proceedings
We are not a party to any pending legal proceedings. None of our directors, officers, or affiliates is involved in a proceeding adverse to our business or has a material interest adverse to our business.

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#### MANAGEMENT
The following table sets forth the names and ages of the Company's officers and members of its Board of Directors (the "Board"), together with all positions and offices held with the Company by these persons:

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| | | |
|:---|:---|:---|
| **NAME**  | **AGE**  | **POSITION WITH THE COMPANY**  |
| Joseph A. Marino | 74  | Chairman of the Board of Directors, President and Chief Executive Officer |
| Peter M. Buonomo | 64  | Senior Vice President, Director |
| Scott S. Robinson | 46  | Treasurer |
| Timothy G. Laske, PhD | 62  | Director |
| Christopher J. Turnbull | 70  | Director |
| Todd C. Johnson | 49  | Director |

---

#### Executive Officers and Employee Directors
*Joseph A. Marino* has served as Chairman of the Board of Directors since 2018 and President & Chief Executive Officer of the Company since 2024. Mr. Marino has served as Chairman of the Board of Directors and Chief Executive Officer of Cardia, Inc. since 1998. He currently serves as Chairman of the Board of Directors of Electro-Sensors, Inc. (NASDAQ: ELSE), a publicly held company that designs and manufactures hazard monitoring systems for industrial applications. He has served on the Electro-Sensors board since 1996 and has served as its Chairman since 2013. From 1994 to 1998, Mr. Marino served as the Chairman of the Board of Directors and Chief Executive Officer of Applied Biometrics, Inc., a publicly held manufacturer of medical devices. From 1980 to 1994, Mr. Marino served as Chairman of the Board of Directors and President and Chief Executive Officer of Biomedical Dynamics Corporation, a publicly held manufacturer of medical products. From 1977 to 1983, Mr. Marino served as Director and Department Head of various clinical services at the University of Minnesota Hospitals. Mr. Marino graduated from the University of Minnesota with a Bachelor of Science degree in 1972. The Board has determined that Mr. Marino is qualified to serve as a director based on his extensive experience serving on the boards of publicly held companies, coupled with his strong technical and clinical background in the medical device industry, particularly in connection with the development of transcatheter closure devices. In addition to his strong technical and clinical background in the medical device industry, Mr. Marino brings significant industry knowledge and corporate governance experience to the Board.

*Peter Buonomo* has served as Senior Vice President of the Company since 2025 and as a director since 2025. Previously, he was Vice President of Sales and Marketing at the Company from 2018 to present. From 1998 to 2023, he was the VP of Sales and Marketing and a Corporate Officer at Cardia, Inc. From 1994 to 1998, Mr. Buonomo was the Director of Marketing and VP of Sales and Marketing at Applied Biometrics, Inc., a publicly held medical device manufacturer. Mr. Buonomo graduated from Oral Roberts University in 1983 with a Bachelor of Science in Business, he went on to complete his MBA, also at Oral Roberts University, in 1984. The Board has determined that Mr. Buonomo is qualified to serve as a director based on his extensive experience as Vice President of Sales and Marketing for multiple medical device companies, where he played a key role in developing markets for innovative products and fostering strong relationships with the medical community. His expertise in international market development and commercial strategy for transcatheter closure devices provides the Board with valuable insight into global growth opportunities, distribution channels and customer engagement.

*Scott S. Robinson* has served as Treasurer and VP of Finance of the Company since 2018. Mr. Robinson served as Controller of Cardia, Inc. from 2010 until 2018. Mr. Robinson received an MBA in Finance from Iowa State University. The Board has determined that Mr. Robinson is qualified to serve as an Officer based on his financial and executive experience, including his current role as Treasurer and Vice President of Finance and his prior service as the Controller of Cardia, Inc. His institutional knowledge of the Company, together with his MBA in Finance, provides the Board with valuable expertise in financial management, resource management and capital allocation.

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#### Non-Employee Directors
*Timothy Laske* has served as a Director of the Company since 2025. Mr. Laske is currently Vice President of Research & Development for the Cardiac Ablation Solutions Business at Medtronic, a role he has held since 2024 He is a Medtronic Bakken Fellow, a Technical Fellow, and a Fellow of the American Institute for Medical and Biological Engineering. His previous roles at Medtronic include VP of Research and Business Development for AF Solutions, Senior Product Development Director for Heart Valves, Senior Program Director for Transcatheter Heart Valves, Technology Director for Cardiac Rhythm Therapy Delivery, and various technology management and design engineering positions. Prior to his 31-year tenure at Medtronic, he worked as a Design Engineer at Ford Motor Company. He has a B.S. degree from Michigan Technological University, an M.S. from the University of Michigan, and a Ph.D. in Biomedical Engineering from the University of Minnesota, where he serves as an Adjunct Assistant Professor in the Department of Surgery. The Board has determined that Mr. Laske is qualified to serve as a director based on his more than three decades of leadership and technical experience in the medical device industry, including senior roles in research, product development, and business development at Medtronic. His extensive background in advancing cardiac and structural heart technologies provides the Board with valuable expertise in innovation, clinical application, and industry strategy.

*Christopher J. Turnbull* has served as a Director of the Company since 2018. Mr. Turnbull has served as a Director of Cardia, Inc. since the company was incorporated in 1998. From 1993 to 1997, Mr. Turnbull was the Chairman and CEO of St. Paul Medical, Inc., a medical device manufacturer of products used in the infection control marketplace. He served as Chairman and CEO of T Medical, Inc., from 2001 to 2003, a medical device manufacturer of products used in advanced airway management procedures. He founded and served as CEO of Critical Care Anesthetists, PA from 1986 to 2003. From 2005 to 2015, he served as CEO of Owatonna Anesthesia Services P.A. In 2015, he founded and served as CEO of Minnesota Anesthesia Associates, PLC (MAA) until 2020. From 2015 to 2017, Mr. Turnbull also provided anesthesia services to the Mayo Clinic in Rochester, Minnesota. From 2017 to 2020, Mr. Turnbull served as the lead CRNA for Twin Cities Surgery Center. Mr. Turnbull retired in 2020 after 40 years of Nurse Anesthesia practice. Mr. Turnbull graduated from Saint Mary's School of Nurse Anesthesiology in 1979 and became a Board-Certified Registered Nurse Anesthetist (CRNA) in 1980. The Board has determined that Mr. Turnbull is qualified to serve as a director based on his extensive executive leadership experience as chairman and chief executive officer of medical device manufacturing companies and as the founder and chief executive officer of a company providing anesthesia services to both inpatient and outpatient healthcare centers. His background as both an operator and entrepreneur provides the Board with valuable insight into corporate leadership, healthcare services, and the medical device industry.

*Todd C. Johnson* has served as a Director of the Company since 2021 and was appointed to the role by the Company's Series A shareholders. Mr. Johnson has served as the Chief Compliance Officer of Cedar Point Capital, LLC, a financial planning and wealth management firm, for the past 15 years. Prior to his current role, Mr. Johnson worked in the Minneapolis Private Placement Department at Stifel Nicolaus, where he assisted in pricing, placing, and closing private placement investments. Mr. Johnson also serves as a board member of HRA IQ, Inc. and an observer on the boards of RxFunction and Medicom Health Interactive. In 2000 Mr. Johnson graduated from Southern Methodist University in Dallas, Texas with a Bachelor of Science in Finance. The Board has determined that Mr. Johnson is qualified to serve as a director based on his extensive experience in compliance and investment advisory services, together with his background in private placement investments. His expertise in financial management, regulatory oversight, and risk management provides the Board with valuable perspective on governance and strategic decision-making.

#### Board of Directors
Our Board of Directors currently consists of five directors, Messrs. Marino, Turnbull, Laske, Johnson and Buonomo. None of our directors are related, and Messrs. Turnbull, Laske and Johnson are independent non-employee directors.

#### Composition and Election of our Board of Directors
Our business and affairs are managed under the direction of our board of directors. Our board of directors may establish the authorized number of directors from time to time by resolution. In accordance

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with our Bylaws that will be in effect immediately prior to the completion of this offering, our board of directors may be comprised of not fewer than two nor more than nine directors, each to serve a one-year term. We currently have five directors. At each annual meeting of stockholders, the directors will be elected to serve for a one-year term or until their earlier resignation, removal or successor is duly elected. Pursuant to the terms of our Series A preferred stock instruments, the Series A holders have the contractual right to appoint one representative to our board of directors. Todd C. Johnson currently serves on our board under this arrangement. His initial two-year term was recently renewed for another two years in accordance with the Series A instruments. Upon the conversion of the Series A preferred stock in connection with this offering, the Series A holders will no longer have the continuing right to designate a director.

#### Director Independence
Our board of directors has undertaken a review of the independence of each director. Based on information provided by each director concerning her or his background, employment and affiliations, our board of directors has determined that Messrs. Turnbull, Laske and Johnson do not have any relationships that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director and that each of these directors is "independent" as that term is defined under the listing standards. In making these determinations, our board of directors considered the current and prior relationships that each non-employee director has with our company and all other facts and circumstances our board of directors deemed relevant in determining their independence, including the beneficial ownership of our shares by each non-employee director and the transactions described in the section titled "Certain Relationships and Related Party Transactions."

#### Committees of Our Board of Directors
Our board of directors will establish an audit committee, a governance committee, and a compensation committee prior to the completion of this offering. The composition and responsibilities of each of the committees of our board of directors are described below. Members serve on these committees until their resignation or until otherwise determined by our board of directors. Our board of directors may establish other committees as it deems necessary or appropriate from time to time.

#### Audit Committee
Our audit committee consists of Mr. Turnbull, Mr. Johnson and Mr. Marino. Our board of directors has determined that a majority of the members of the audit committee satisfies the independence requirements under listing standards and Rule 10A-3(b)(1) of the Exchange Act. Furthermore, Mr Marino will be replaced as a member of the audit committee by Mr. Laske within 12 months to continue meeting the independence requirements under the listing standards above.

The chair of our audit committee is Mr. Turnbull, who our board of directors has determined is an "audit committee financial expert" within the meaning of SEC regulations. Each member of our audit committee can read and understand fundamental financial statements in accordance with applicable requirements. In arriving at these determinations, our board of directors has examined each audit committee member's scope of experience and the nature of their employment in the corporate finance sector.

The principal duties and responsibilities of our audit committee include, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • selecting a qualified firm to serve as the independent registered public accounting firm to audit our financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • helping to ensure the independence and performance of the independent registered public accounting firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • helping to maintain and foster an open avenue of communication between management and the independent registered public accounting firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • discussing the scope and results of the audit with the independent registered public accounting firm, and reviewing, with management and the independent registered public accounting firm, our interim and year-end operating results;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • developing procedures for employees to submit concerns anonymously about questionable accounting or audit matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • reviewing our policies on risk assessment and risk management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • reviewing related party transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • obtaining and reviewing a report by the independent registered public accounting firm at least annually, that describes its internal quality-control procedures, any material issues with such procedures, and any steps taken to deal with such issues when required by applicable law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • approving (or, as permitted, pre-approving) all audit and all permissible non-audit services to be performed by the independent registered public accounting firm.

Our audit committee will operate under a written charter, to be effective prior to the completion of this offering, that satisfies the applicable listing standards.

#### Governance Committee
Our governance committee will consist of Mr. Turnbull, Mr. Johnson, and Mr. Marino. The chair of our governance committee is Mr. Turnbull. Our board of directors has determined that a majority of the members of the governance committee satisfy the independence requirements under listing standards. Furthermore, Mr. Marino will be replaced as a member of the governance committee by Mr. Laske within 12 months to continue meeting the independence requirements under the listing standards.

Our board of directors has determined that each member of the governance committee is independent under the listing standards.

The governance committee's responsibilities include, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • identifying, evaluating, and selecting, or recommending that our board of directors approve, nominees for election to our board of directors and its committees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • approving the retention of director search firms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • evaluating the performance of our board of directors and of individual directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • considering and making recommendations to our board of directors regarding the composition of our board of directors and its committees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • evaluating the adequacy of our corporate governance practices and reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • overseeing an annual evaluation of the board's performance.

Our governance committee will operate under a written charter, to be effective prior to the completion of this offering, that satisfies the applicable listing standards.

#### Compensation Committee
Our compensation committee consists of Mr. Turnbull, Mr. Johnson and Mr. Marino. The chair of our compensation committee is Mr. Turnbull. Our board of directors has determined that a majority of the members of the compensation committee are independent under listing standards. Within 12 months, Mr. Marino will be replaced by Mr. Laske as a compensation committee member to ensure continued compliance with independence under the listing standards.

The principal duties and responsibilities of our compensation committee include, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • approving the retention of compensation consultants and outside service providers and advisors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • reviewing and approving, or recommending that our board of directors approve, the compensation, individual and corporate performance goals and objectives and other terms of employment of our executive officers, including evaluating the performance of our chief executive officer and other executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • reviewing and recommending to our board of directors the compensation of our directors;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • administering our equity and non-equity incentive plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • reviewing our practices and policies of employee compensation as they relate to risk management and risk-taking incentives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • reviewing and evaluating succession plans for the executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • reviewing and approving, or recommending that our board of directors approve, incentive compensation and equity plans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • reviewing and establishing general policies relating to compensation and benefits of our employees and reviewing our overall compensation philosophy.

Our compensation committee will operate under a written charter, to be effective prior to the completion of this offering, that satisfies the applicable listing standards.

#### Compensation Committee Interlocks and Insider Participation
None of the members of the compensation committee are currently, or have been at any time, one of our executive officers or employees. None of our executive officers currently serve, or have served during the last year, as a member of the board of directors or compensation committee of any entity that has one or more executive officers serving as a member of our board of directors or compensation committee.

#### Code of Business Conduct and Ethics
In connection with this offering, we intend to adopt a Code of Conduct and Ethics that applies to all our employees, officers and directors. This includes our principal executive officer, principal financial officer and principal accounting officer or controller, or persons performing similar functions. The full text of our Code of Conduct and Ethics will be posted on our website at Encore-Medical.com. We intend to disclose on our website any future amendments of our Code of Conduct and Ethics or waivers that exempt any principal executive officer, principal financial officer, principal accounting officer or controller, persons performing similar functions or our directors from provisions in the Code of Conduct and Ethics. Information contained on, or that can be accessed through, our website is not incorporated by reference into this prospectus, and you should not consider information on our website to be part of this prospectus.

#### Director and Compensation
We currently pay no fees or other compensation for service on the Board or any committee thereof. Non-employee directors of the Company are eligible to participate in stock option programs that we may adopt from time to time. See "Executive Compensation; 2018 Stock Incentive Plan." We may grant non-employee directors non-qualified options to purchase shares of common stock from time to time for their services.

#### Employment Agreement
We do not currently have any employment, change of control, or non-compete agreements with any of our executive officers or employees.

#### Indemnification and Waiver of Director Liability
The Minnesota Business Corporation Act provides that our officers and directors have the right to indemnification from us for liability arising out of certain actions. Such indemnification may be available for liabilities arising in connection with securities offerings.

We have adopted in our Articles a provision which limits personal liability for breach of the fiduciary duty of our directors, to the extent provided by Section 302A.251 of the Minnesota Business Corporation Act. Such provision eliminates the personal liability of directors for damages occasioned by breach of fiduciary duty, except for liability based on the director's duty of loyalty to us, liability for acts or omissions not made in good faith, liability for acts or omissions involving intentional misconduct or a knowing violation of law, liability based on payments of improper dividends, liability based on violations of state securities laws, and liability for acts occurring prior to the date such provision was added.

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Section 302A.521 of the Minnesota Business Corporation Act provides that a Minnesota business corporation shall indemnify any director, officer, employee or agent of the corporation made or threatened to be made a party to a proceeding, by reason of the former or present official capacity (as defined therein) of the person, against judgments, penalties, fines, settlements and reasonable expenses incurred by the person in connection with the proceeding if certain statutory standards are met. "Proceeding" means a threatened, pending or completed civil, criminal, administrative, arbitration or investigative proceeding, including one by or in our right. Article VIII of our bylaws provides that we shall indemnify persons to the fullest extent permissible by the Minnesota Business Corporation Act. Section 302A.521 contains detailed terms regarding such right of indemnification and reference is made thereto for a complete statement of such indemnification rights.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling us pursuant to the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

#### Board Advisor
Greg Steiner has served as Advisor to the Board since 2024. Mr. Steiner provides advisory and consulting services to the Company pursuant to an arrangement under which he is compensated on an hourly basis for services rendered. Mr. Steiner has extensive experience in public accounting with large public accounting firms and representing audit teams for public and private clients. His background in auditing, financial reporting, and corporate governance provides the Board with valuable expertise in financial oversight and risk management. His work on behalf of the Company primarily involves providing financial expertise and governance guidance to the Board. He has previously served as a Senior Manager at Ernst & Young LLP, and as an Audit Partner and Audit Practices Leader at Grant Thornton LLP. Mr. Steiner also served as a Board Member and Chairman of the Board of the Minnesota State Board of Accountancy. He is currently an Accounting Professor in a master's program in the School of Public Health at the University of Minnesota.

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#### EXECUTIVE COMPENSATION
This discussion may contain forward-looking statements that are based on our current plans, considerations, expectations and determinations regarding future compensation programs. Actual compensation programs that we adopt following the completion of this offering may differ materially from the currently planned programs summarized in this discussion.

Currently, the company's compensation plan for its executive officers consists of salary and benefits, including a company healthcare plan or comparable allowance, and a company auto allowance. The company has no formal regular plan for the issuance of bonuses, stock options, or other forms of compensation; however, company executives are eligible for such other forms of compensation at the discretion of the board of directors. Other than stock options as listed below, no other compensation was awarded in 2023 or 2024.

In 2024, our "named executive officers" and their positions were as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Joseph A. Marino, Chairman, President, and CEO

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Peter M. Buonomo, Director, Sr. Vice President

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Scott S. Robinson, Vice President of Finance

#### Summary Compensation Table
The following table sets out the compensation paid or payable to the Named Executive Officers ("NEO") of the Company during the last two fiscal years:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position**  | **Year**  | **Salary <br> ($)**  | **Bonus <br> ($)**  | **Option <br> Awards <br> ($)<sup>(9)</sup>**  | **Non-Equity <br> Incentive Plan <br> Compensation <br> ($)**  | **All Other <br> Compensation <br> ($)**  | **Total <br> ($)**  |
|  Joseph A. Marino, <br> *Chairman, President, and CEO*  | 2024 | $184825(1) | $0 | $92100(2) | $0 | $0 | $276925 |
|  Joseph A. Marino, <br> *Chairman, President, and CEO*  | 2023 | $0 | $0 | $0 | $0 | $0 | $0 |
|  Peter M. Buonomo, <br> *Director, Sr. Vice President*  | 2024 | $82307(3) | $0 | $230250(4) | $0 | $20663(5) | $333220 |
|  Peter M. Buonomo, <br> *Director, Sr. Vice President*  | 2023 | $0 | $0 | $0 | $0 | $0 | $0 |
|  Scott S. Robinson, <br> *Vice President of Finance*  | 2024 | $137000 | $0 | $138150(6) | $0 | $24789(7) | $299939 |
|  Scott S. Robinson, <br> *Vice President of Finance*  | 2023 | $10538(8) | $0 | $0 | $0 | $0 | $10538 |

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(1) Employment began April 4, 2024. This figure represents the actual payroll in 2024. Approved annualized amount is $275,000.

(2) Comprised of options to purchase 50,000 shares of common stock.

(3) Employment began on April 4, 2024. This figure represents the actual payroll in 2024. Approved annualized amount is $127,67.

(4) Comprised of options to purchase 125,000 shares of common stock.

(5) Comprised of healthcare benefit and auto allowance.

(6) Comprised of options to purchase 75,000 shares of common stock.

(7) Comprised of $13,751 healthcare benefit and $6,912 auto allowance.

(8) Employment began on December 1, 2023. This figure represents the actual payroll in 2023. Approved annualized amount is $137,000.

(9) Amounts reflect the grant date fair value of stock options granted during 2024 computed in accordance with ASC Topic 718, rather than the amounts paid to or realized by the named individual. See Note 10 of the consolidated financial statements included in this prospectus for a discussion of valuation assumptions made in determining the grant date fair value and compensation expense of our stock options.

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#### Executive Compensation Program
For the years ended December 31, 2024 and December 31, 2023, the compensation for our named executive officers generally consisted of a base salary and stock options. These elements (and the amounts of compensation and benefits under each element) were selected because we believe they are necessary to help us attract and retain executive talent which is fundamental to our success. Below is a more detailed summary of the current executive compensation program as it relates to our named executive officers.

#### Base Salaries
Our named executive officers receive an annual base salary to compensate them for services rendered to us. The base salary payable to each named executive officer is intended to provide a fixed component of compensation reflecting the executive's skill set, experience, role and responsibilities. For fiscal year 2024, the base salary for Mr. Marino is $275,000; Mr. Buonomo is $127,672; and Mr. Robinson is $137,000.

The Company anticipates that Mr. Marino, Mr. Buonomo, and Mr. Robinson will be the most highly compensated officers of the Company for the fiscal year ended 2025.

#### Equity Incentive Compensation
On August 15, 2024, Mr. Marino was granted options to purchase 50,000 shares of common stock, Mr. Buonomo was granted options to purchase 125,000 shares of common stock, and Mr. Robinson was granted options to purchase 75,000 shares of common stock. All of these grants, which were made pursuant to the Plan described below have an exercise price of $5.00 per share and vest fully upon issuance.

#### 2018 Stock Incentive Plan
The Encore Medical, Inc. 2018 Stock Incentive Plan ("Plan") was adopted by our board of directors effective January 16, 2018 and will terminate on January 15, 2028. The purpose of the Plan is to enable the Company to retain and attract executives, key technical and functional employees, directors and consultants who contribute to the Company's success by their ability, ingenuity and industry, and to enable such individuals to participate in the long-term success and growth of the Company by giving them a proprietary interest in the Company.

As of September 12, 2025, the total number of shares of common stock reserved for issuance and available for distribution under the Plan is 450,643. The number of shares reserved for issuance under the Plan is automatically increased each time the number of shares available for grant have been granted and are no longer available (the "Reset Date"). On each Reset Date, the number of shares reserved under the Plan is automatically increased to an amount equal to 10% of the total number of shares of common stock outstanding on such date.

As of September 12, 2025, incentive and non-qualified stock options to purchase an aggregate of 463,000 shares of common stock were issued and outstanding at exercise prices of $1.00 to $5.00 per share and which vest over a 3 year period. All of the outstanding stock options are exercisable over a period of 10 years from the date of grant.

Our board of directors or a committee thereof has complete discretion to select Plan optionees and to establish the terms and conditions of each award, subject in all cases to the provisions of the Plan and applicable provisions of the Internal Revenue Code. The current Plan requires that the exercise price of each option granted shall not be less than 100% of fair market value of the common stock as of the date the option is granted. In the event that an optionee is the owner of 10% of the voting power of all class of stock of the Company, the option price shall not be less than 110% of the fair market value. The term of any option granted under the Plan may not exceed ten years.

In addition to stock options the Encore Medical, Inc. 2018 Stock Incentive Plan provides for the award of stock appreciation rights, restricted stock, deferred stock and the allowance of a target grant program. Other then stock options as described above, no such additional awards have been utilized to date.

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#### Director Compensation
We currently pay no fees or other compensation for service on the Board or any committee thereof. Non-employee directors of the Company are eligible to participate in stock option programs that we may adopt from time to time. See "Executive Compensation; 2018 Stock Incentive Plan." We may grant non-employee directors non-qualified options to purchase shares of common stock from time to time for their services.

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#### PRINCIPAL SHAREHOLDERS

#### Security Ownership of Principal Shareholders and Management
The following table sets forth information with respect to the beneficial ownership of our common stock as of September 12, 2025, after giving effect to the Series A Conversion, with respect to each person who is known by us to beneficially own more than five percent (5%) of our common stock, by each of our directors and named executive officers, and by all of our directors and officers as a group. Unless otherwise indicated, each person has sole voting and dispositive power over such shares.

The number of shares of common stock beneficially owned and percentages of beneficial ownership before and after this offering that are set forth below are based on (i) the number of shares to be issued and outstanding prior to and after this offering, after giving effect to the Series A Conversion and (ii) an assumed initial public offering price of $5.00 per share.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Pre-Offering**  | **Pre-Offering**  | **Post-Offering**  | **Post-Offering**  |
| **Name of Beneficial Owner**  | **Shares <br> Owned**  | **Percent <br> Owned**  | **Shares <br> Owned**  | **Percent <br> Owned**  |
| **Directors and Executive Officers:** |  |  |  |  |
| Joseph A. Marino<sup>(1)</sup>  | 1893395 | 24.4% | 1893395 | 16.9% |
| Peter M. Buonomo<sup>(2)</sup>  | 200000 | 2.6% | 200000 | 1.8% |
| Scott S. Robinson<sup>(3)</sup>  | 100000 | 1.3% | 100000 | 0.9% |
| Christopher J. Turnbull<sup>(4)</sup>  | 305505 | 3.9% | 305505 | 2.7% |
| Todd C. Johnson<sup>(6)</sup>  | 183959 | 2.5% | 183959 | 1.6% |
| Executive Officers and Directors as a Group (5 persons)  | 2682859 | 34.6% | 2682859 | 24.0% |
| **Other 5% Owners** |  |  |  |  |
| David B. Johnson<sup>(5)</sup>  | 628604 | 8.1% | 628604 | 5.6% |

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(1) Joseph A. Marino is the Chairman, Director, and an executive officer of the Company. The number of shares listed reflects shares held directly and 50,000 shares underlying stock options to purchase common stock, which are exercisable within 60 days of September 12, 2025. Also includes 1,522,487 shares owned by family members of Joseph A. Marino, all of whom are adults, and over which Mr. Marino does not possess voting control; voting power over such shares follows investment power.

(2) Peter M. Buonomo is the Senior Vice President of the Company. The number of shares listed reflects shares held directly, and 125,000 shares underlying stock options to purchase common stock, which are exercisable within 60 days of September 12, 2025.

(3) Scott S. Robinson is the Treasurer and an executive officer of the Company. The number of shares listed reflects shares held directly and 100,000 shares underlying stock options to purchase common stock, which are exercisable within 60 days of September 12, 2025.

(4) Christopher J. Turnbull serves as a director of the Company. The number of shares listed reflects shares held directly and 100,000 shares underlying stock options to purchase common stock, which are exercisable within 60 days of September 12, 2025.

(5) The number of shares listed reflects shares owned directly. David B. Johnson is the Chief Executive Officer and sole owner of Cedar Point Capital. Also includes shares owned by family members of David B. Johnson (excluding shares owned by Todd C. Johnson, who appears separately in this table and is Cedar Point Capital's Chief Compliance Officer), all of whom are adults. David B. Johnson does not possess voting control over shares owned by his adult family members; voting power over such shares follows investment power. David B. Johnson and Todd C. Johnson are Father and Son, respectively.

(6) Todd C. Johnson serves as a director of the Company. The number of shares listed reflect shares held directly and 40,150 shares underlying warrants to purchase common stock related to previous stock offerings brokered through Cedar Point Capital, for whom Todd C. Johnson, their Chief Compliance Officer, holds.

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#### DESCRIPTION OF SECURITIES

#### General
Our authorized capital stock consists of 10,000,000 shares of common stock, $0.01 par value per share, and 4,000,000 shares of undesignated preferred stock, $0.01 par value per share. As of September 12, 2025 there were 6,743,425 shares of common stock outstanding, assuming the Series A Conversion immediately prior to the closing of the offering into 876,000 shares of common stock. Upon completion of this offering, no shares of our preferred stock will be designated, issued or outstanding.

The following summary of our capital stock, our amended and restated articles of incorporation, as amended, and our bylaws do not purport to be complete and is qualified in its entirety by reference to the provisions of applicable law and to our amended and restated articles of incorporation, as amended, and bylaws, which are filed as exhibits to the registration statement of which this prospectus is a part.

#### Common Stock
Holders of common stock have no preemptive, subscription, redemption or conversion rights. Cumulative voting for directors is not permitted, but the holders of common stock are entitled to one vote per share in all matters to be voted on by shareholders. Subject to the rights of the holders of any outstanding Preferred Stock, holders of common stock are entitled to receive dividends legally available therefore, when, as and if declared by the Board of Directors and, upon liquidation or dissolution of the Company, whether voluntary or involuntary, to share equally in the assets of the Company available for distribution to the shareholders. The Company has never paid a cash dividend on its common stock and does not intend to pay dividends in the foreseeable future. The Company's present intention is to retain all future earnings for use in its business. All shares of common stock presently outstanding are fully paid and non-assessable. The Board of Directors is authorized to issue additional shares of common stock, but not to exceed the amount authorized by the Company's Articles, and to issue options and warrants for the purchase of such shares, on such terms and conditions and for such consideration as the Board may deem appropriate without further shareholder action.

#### Warrants
As of September 12, 2025, the Company currently has 542,080 issued and outstanding warrants exercisable into common stock related to previous stock purchase offerings. The warrants have an average exercise price of $8.75 and an average term of 8 years.

#### Anti-Takeover Effects of Provisions of the Articles of Incorporation, the Bylaws and Applicable Law
Our amended and restated articles of incorporation, as amended, bylaws, and the laws of the State of Minnesota contain provisions that could make it more difficult to acquire us by means of a tender offer, a proxy contest or otherwise, or to remove incumbent officers and directors. These provisions, summarized below, are intended to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of us to first negotiate with our Board. However, these provisions may delay, deter, or prevent a merger or acquisition of us that a stockholder might consider is in their best interest or in our best interests, including transactions that might result in a premium over the prevailing market price of common stock.

#### Authorized but Unissued Capital Stock
The authorized but unissued shares of common stock are available for future issuance without stockholder approval, subject to any limitations imposed by the listing standards of the NYSE American. These additional shares may be used for a variety of corporate finance transactions, acquisitions, and employee benefit plans. Moreover, our board of directors may generally issue shares of one or more series of preferred stock on terms that could discourage, delay or prevent a change of control of the Company or the removal of our management.

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#### Board Classification
Our bylaws provide that our board of directors will be divided into three classes of directors, with the directors serving three-year terms. As a result, approximately one-third of our board of directors will be elected each year. The classification of directors will have the effect of making it more difficult for stockholders to change the composition of our board of directors.

#### Board Vacancies and Newly Created Directorships
Our bylaws provide that any vacancies on our board of directors, and any newly created directorships, will be filled by the affirmative vote of a majority of the directors then in office.

#### No Cumulative Voting
Our amended and restated articles of incorporation do not authorize cumulative voting.

#### Advance Notice Requirements for Director Nominations and Stockholder Proposals
Our bylaws establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at the direction of the board of directors or a committee of the board of directors.

#### Minnesota Corporate Law
We are subject to the provisions of Section 302A.671 and 302A.673 of the Minnesota Business Corporation Act, which may deny shareholders the receipt of a premium on their capital stock, and which may also have a depressive effect on the market price of our common stock. In general, Section 302A.671 provides that the shares of an issuing public corporation acquired in a "control share acquisition" have no voting rights unless voting rights are approved in a prescribed manner. A "control share acquisition" is an acquisition, directly or indirectly, of beneficial ownership of shares that would, when added to all other shares beneficially owned by the acquiring person, entitle the acquiring person to have voting power of 20% or more in the election of directors, or to increase such acquiring person's voting power from less than 33<sup>1</sup>∕3% to more than 33<sup>1</sup>∕3% but less than 50%, or to increase such person's voting power from less than 50% to more than 50%.

In general, Section 302A.673 prohibits an issuing public corporation from engaging in a "business combination" with an "interested shareholder" for a period of four years after the date of the transaction in which the person became an interested shareholder, unless the business combination is approved in a prescribed manner. "Business combination" includes mergers, asset sales and other transactions resulting in a financial benefit to the interested shareholder. An "interested shareholder" is a person who is the beneficial owner, directly or indirectly, of 10% or more of the corporation's voting stock or who is an affiliate or associate of the corporation and at any time within four years prior to the date in question was the beneficial owner, directly or indirectly, of 10% or more of the corporation's voting stock.

#### Transfer Agent
The Company has retained the services of American Stock Transfer (Equiniti) to act as Transfer Agent for our common stock.

#### Trading Symbol and Market
We have applied for listing of our common stock on the NYSE American Market under the symbol "EMI."

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#### SHARES ELIGIBLE FOR FUTURE SALE
Prior to this offering, there was no public market for our common stock, and a liquid trading market for our common stock may not develop or be sustained after this offering. Future sales of substantial amounts of common stock in the public market, or the perception that such sales may occur, could adversely affect the market price of our common stock. Although we have applied to list our common stock listed on NYSE American, we cannot assure you that there will be an active public market for our common stock.

Upon the closing of this offering, we will have outstanding an aggregate of 9,743,425 shares of common stock, or 10,193,425 shares of common stock if the underwriters exercise their option to purchase additional shares in full, assuming an initial public offering price of $5.00 per share. Of these shares, all shares sold in this offering will be freely tradable without restriction or further registration under the Securities Act, except for any shares purchased by our "affiliates," as that term is defined in Rule 144 under the Securities Act, whose sales would be subject to the Rule 144 resale restrictions described below, other than the holding period requirement.

The remaining shares of common stock will be "restricted securities," as that term is defined in Rule 144 under the Securities Act. These restricted securities are eligible for public sale only if they are registered under the Securities Act or if they qualify for an exemption from registration under the Securities Act.

#### Lock-Up Arrangements
In connection with this offering, we have agreed that, without the prior written consent of the Representative, we will not, for a period of one hundred eighty (180) days after the closing of the offering (the "Lock-Up Period"), (i) offer, pledge, announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, make any short sale or otherwise transfer or dispose of, directly or indirectly, any shares of capital stock of the Company or any securities convertible into, exercisable or exchangeable for, or that represent the right to receive, shares of capital stock of the Company (including without limitation, shares of common stock issuable upon exercise of stock options or warrants), whether now owned or hereafter acquired; (ii) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of such securities, whether any such transaction is to be settled by delivery of capital stock or such other securities, in cash or otherwise; (iii) make any demand for or exercise any right with respect to the registration of any such securities; or (iv) publicly disclose the intention to do any of the foregoing.

Additionally, our directors and officers and any other holder(s) of 2% or more of the outstanding shares of common stock as of the effective date of the Registration Statement (including all holders of securities exercisable for or convertible into shares of common stock) have agreed not to, for a period of one hundred eighty (180) days after the closing of the offering, engage in any of the transactions described above with respect to any of their securities, subject to customary exceptions, including but not limited to bona fide gifts, estate planning transfers, transfers by will or operation of law, transfers to affiliates, and certain exercises of stock options or tax withholding arrangements, provided that the transferee agrees to be bound by the same restrictions and no public filings are made prior to expiration of the Lock-Up Period.

#### Rule 144
In general, under Rule 144 as currently in effect, once we have been subject to public company reporting requirements of Section 13 or Section 15(d) of the Exchange Act for at least 90 days, an eligible shareholder is entitled to sell such shares without complying with the manner of sale, volume limitation or notice provisions of Rule 144, subject to compliance with the current public information requirements of Rule 144. To be an eligible shareholder under Rule 144, such shareholder must not be deemed to have been one of our affiliates for purposes of the Securities Act at any time during the 90 days preceding a sale and must have beneficially owned the shares proposed to be sold for at least six months, including the holding period of any prior owner other than our affiliates. If such a person has beneficially owned the shares proposed to be sold for at least one year, including the holding period of any prior owner other than our affiliates, then

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such person is entitled to sell such shares without complying with any of the requirements of Rule 144, subject to the expiration of the lock-up agreements described below.

In general, under Rule 144, as currently in effect, our affiliates or persons selling shares on behalf of our affiliates are entitled to sell shares on expiration of the lock-up agreements described above, subject, in the case of restricted securities, to such shares having been beneficially owned for at least six months. Beginning 90 days after the date of this prospectus, within any three-month period, such shareholders may sell a number of shares that does not exceed the greater of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 1% of the number of common stock then outstanding, which will equal approximately shares immediately after this offering, assuming no exercise of the underwriters' option to purchase additional shares of common stock from us; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the average weekly trading volume of our common stock during the four calendar weeks preceding the filing of a notice on Form 144 with respect to such sale.

Sales under Rule 144 by our affiliates or persons selling shares on behalf of our affiliates are also subject to certain manner of sale provisions and notice requirements and to the availability of current public information about us.

#### Rule 701
Rule 701 generally allows a shareholder who was issued shares under a written compensatory plan or contract and who is not deemed to have been an affiliate of our company during the immediately preceding 90 days, to sell these shares in reliance on Rule 144, but without being required to comply with the public information, holding period, volume limitation or notice provisions of Rule 144. Rule 701 also permits affiliates of our company to sell their Rule 701 shares under Rule 144 without complying with the holding period requirements of Rule 144. All holders of Rule 701 shares, however, are required by that rule to wait until 90 days after the date of this prospectus before selling those shares under Rule 701, subject to the expiration of the lock-up agreements described below.

#### Form S-8 Registration Statements
We intend to file one or more registration statements on Form S-8 under the Securities Act with the SEC to register the offer and sale of shares of our common stock that are issuable under the Encore Medical, Inc. 2018 Stock Incentive Plan. These registration statements will become effective immediately on filing. Shares covered by these registration statements will then be eligible for sale in the public markets, subject to vesting restrictions, any applicable lock-up agreements described herein, and Rule 144 limitations applicable to affiliates.

#### 10b5-1 Plans
After the offering, certain of our employees, including our executive officers, and/or directors may enter into written trading plans that are intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934. Sales under these trading plans would not be permitted until the expiration of the lock-up agreements relating to the offering described herein.

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#### PLAN OF DISTRIBUTION
The Company and the underwriters named below have entered into an underwriting agreement with respect to the shares of common stock being offered by the Company. Subject to certain conditions, we have agreed to issue and sell to the underwriters, and the underwriters have agreed to purchase, at the public offering price less the underwriting discounts set forth on the cover page of this prospectus, the number of shares listed next to its name in the following table:

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| | |
|:---|:---|
| | **Number of Shares**  |
| The Oak Ridge Financial Services Group, Inc.  |  |
| Dawson James Securities, Inc.  |  |
| Total  |  |

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The Oak Ridge Financial Services Group, Inc. is the representative of the underwriters. The underwriters are obligated to take and pay for all of the shares of common stock offered by this prospectus if any such shares are taken. However, the underwriters are not required to take or pay for the shares covered by the underwriters' over-allotment option described below. Furthermore, pursuant to the underwriting agreement, the underwriters' obligations are subject to customary conditions, representations and warranties contained in the underwriting agreement, such as receipt by the underwriters of officers' certificates and legal opinions.

We have granted the underwriters an over-allotment option to purchase up to an additional shares of common stock (fifteen (15%) of the shares of common stock sold in this offering) from the Company, at the public offering price listed on the cover page of this prospectus, less the underwriting discounts and commissions. They may exercise this option for 45 days from the date of this prospectus. If any shares are purchased pursuant to this option, the underwriters will severally purchase shares in approximately the same proportion as set forth in the table above.

The underwriters initially propose to offer part of the shares of common stock directly to the public at the offering price listed on the cover page of this prospectus and part to certain dealers at a price that represents a concession not in excess of $ per share under the public offering price. After the initial offering of the shares of common stock, the offering price and other selling terms may from time to time be varied.

The underwriters propose initially to offer the shares to the public at the public offering price set forth on the cover page of this prospectus and to dealers at that price less a concession not in excess of $ per share. After the initial offering, the public offering price, concession or any other term of this offering may be changed.

The following table shows the public offering price, underwriting discount and proceeds before expenses to us. The information assumes both no exercise and full exercise the underwriters' over-allotment option to purchase additional shares.

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| | | | |
|:---|:---|:---|:---|
| | **Per Share**  | **Without <br> Over-allotment <br> Option**  | **With <br> Over-allotment <br> Option**  |
| Public offering price  |  |  |  |
| Underwriting discount  |  |  |  |
| Proceeds, before expenses, to us  |  |  |  |

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We have also agreed to reimburse the underwriters for certain of their expenses relating to the offering including but not limited to the following: (a) all filing fees and communication expenses associated with the review of this offering by FINRA, (b) all fees, expenses and disbursements relating to the registration, qualification or exemption of securities offered under the securities laws of foreign jurisdictions designated by the underwriters including the reasonable fees and expenses of the underwriters' blue sky counsel, and (c) the fees and expenses of the Representatives' legal counsel incurred in connection with this offering in an amount up to $150,000 without prior approval by us. We have agreed to pay the Representative a $25,000 non-refundable advance for its anticipated out-of-pocket costs.

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We have also agreed to pay the Representative a non-accountable expense allowance equal to one percent (1.0%) of the gross proceeds received from the sale of shares of common stock. The non-accountable expense allowance will be paid through a deduction from the net proceeds of the offering.

The expenses of this offering, not including the underwriting discount, are estimated at $800,000 and are payable by us.

We have agreed to indemnify the underwriters against certain liabilities, including liabilities under the Securities Act, or to contribute to payments the underwriters may be required to make in respect of those liabilities.

#### Underwriter's Warrants
In conjunction with the offering, the Company will grant to the Underwriter a warrant to purchase a number of shares of common stock equal to eight percent (8%) of the shares of common stock sold by the Company in the offering (the "Underwriter's Warrant"). The Underwriter's Warrant shall first become exercisable one (1) year after the effective date of the offering and shall be exercisable for a period of seven (7) years thereafter at a price equal to 120% of the initial public offering price. The Underwriter's Warrant shall not be transferable except in accordance with applicable securities regulations. The Underwriter's Warrant shall contain customary anti-dilution provisions and shall provide for participation of the shares of common stock underlying the Underwriter's Warrant (the "Warrant Shares") on a "piggy-back" basis in up to two (2) registrations by the Company during the Underwriter's Warrant's duration, such registration to be at the Company's expense; provided, however, that (i) all underwriting discounts and commissions attributable to any Warrant Shares so registered will be borne by the selling party; (ii) any fees and expenses of counsel for the selling shareholders will be payable by such shareholders pro rata; and (iii) in connection with a "piggy-back" registration, such selling shareholders will be required to reduce the number of Warrant Shares proposed to be offered pro rata with all other selling shareholders (except the Company) upon the request of the managing underwriter of any such offering. The Underwriter's Warrant shall provide for the cash-less exercise of the Underwriter's Warrant.

The Representative's Warrants are deemed underwriter compensation by FINRA and are therefore subject to a 180-day lock-up pursuant to FINRA Rule 5110(g)(1). The Representative or its designees (or their permitted assignees under Rule 5110(g)(1)) will not sell, transfer, assign, pledge, or hypothecate these warrants or the securities underlying these warrants, nor will they engage in any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of the warrants or the underlying securities for a period of 180 days following the commencement of sales pursuant to this prospectus. In addition, the Representative's Warrants provide for registration rights, including a one-time demand registration right within seven years and unlimited piggyback registration rights within seven years from the commencement of sales in this offering in compliance with FINRA Rule 5110(g)(8)(B)-(D). We will bear all fees and expenses attendant to registering the securities issuable on exercise of the Representative's Warrants other than underwriting commissions incurred and expenses of any legal counsel payable by the holders. The exercise price and number of shares of common stock issuable upon exercise of the Representative's Warrants may be adjusted in certain circumstances including in the event of a stock dividend or our recapitalization, reorganization, merger, or consolidation.

#### Lock-Up Agreements
We and our executive officers, directors and shareholders holding 2% or more of the company's outstanding common stock have agreed with the underwriters, subject to certain exceptions, not to sell or transfer any common stock or securities convertible into or exchangeable for shares of common stock during the period from the date of this prospectus continuing through the date 180 days after the date of this prospectus (the "Restricted Period"), except with the prior written consent of the representative.

#### Listing
We have applied to list our common stock for trading on the NYSE American under the symbol "EMI." We cannot guarantee that our common stock will be approved for listing on NYSE American.

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However, the consummation of this offering and the distribution are contingent on such approval. We will not consummate this offering or the distribution unless our common stock is so listed.

#### Offering Price
Before this offering, there has been no public market for our common stock. The initial public offering price has been negotiated between us and the Representative. In addition to prevailing market conditions, the factors to be considered in determining the initial public offering price will be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the valuation multiples of publicly traded companies that the Representative believes to be comparable to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our financial information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the history of, and the prospects for, our Company and the industry in which we compete;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • an assessment of our management, its past and present operations, and the prospects for, and timing of, our future revenues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the present state of our development; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the above factors in relation to market values and various valuation measures of other companies engaged in activities similar to ours.

An active trading market for the shares of common stock may not develop. It is also possible that after this offering the shares of common stock will not trade in the public market at or above the initial public offering price.

#### Price Stabilization, Short Positions and Penalty Bids
Until the distribution of the shares is completed, SEC rules may limit underwriters and selling group members from bidding for and purchasing our common stock. However, the Representative may engage in transactions that stabilize the price of the common stock, such as bids or purchases to peg, fix or maintain that price.

The underwriters may also impose a penalty bid. This occurs when a particular underwriter repays to the underwriters a portion of the underwriting discount received by it because the representatives have repurchased shares sold by or for the account of such underwriter in stabilizing or short covering transactions.

Similar to other purchase transactions, the underwriters' purchases to cover the syndicate short sales may have the effect of raising or maintaining the market price of shares of our common stock or preventing or retarding a decline in the market price of shares of our common stock. As a result, the price of shares of our common stock may be higher than the price that might otherwise exist in the open market. The underwriters may conduct these transactions on NYSE American, in the over-the-counter market or otherwise.

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Neither we nor any of the underwriters make any representation or prediction as to the direction or magnitude of any effect that the transactions described above may have on the price of shares of our common stock. In addition, neither we nor any of the underwriters make any representation that the representatives will engage in these transactions or that these transactions, once commenced, will not be discontinued without notice.

#### Electronic Distribution
A prospectus in electronic format may be made available on the websites maintained by one or more of the underwriters or selling group members. The Representative may agree to allocate a number of securities to underwriters and selling group members for sale to its online brokerage account holders. Internet distributions will be allocated by the underwriters and selling group members that will make internet distributions on the same basis as other allocations. Other than the prospectus in electronic format, the information on these websites is not part of, nor incorporated by reference into, this prospectus or the registration statement of which this prospectus forms a part, has not been approved or endorsed by us, and should not be relied upon by investors.

#### Other Relationships
The underwriters and their respective affiliates are full-service financial institutions engaged in various activities, which may include securities trading, commercial and investment banking, financial advisory, investment management, investment research, principal investment, hedging, financing and brokerage activities. The underwriters and certain of their affiliates may, in the future, provide investment and commercial banking and financial advisory services to us and our affiliates in the ordinary course of business, for which they may receive customary fees and commissions. In the ordinary course of their various business activities, the underwriters and their respective affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own account and for the accounts of their customers, and such investment and securities activities may involve securities and/or instruments of ours. The underwriters and their respective affiliates may also make investment recommendations and/or publish or express independent research views in respect of such securities or instruments and may at any time hold, or recommend to clients that they acquire, long and/or short positions in such securities and instruments.

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#### MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS FOR NON-U.S. HOLDERS OF COMMON STOCK
The following is a general discussion of the material U.S. federal income tax consequences applicable to non-U.S. holders (as defined below) of the purchase, ownership and disposition of our common stock. This discussion is based upon the Internal Revenue Code of 1986, as amended (the "Code"), applicable Treasury Regulations, administrative rulings and judicial decisions as of the date of this prospectus, all of which are subject to change or differing interpretations, possibly with retroactive effect.

This discussion does not address all aspects of U.S. federal income taxation that may be relevant to a non-U.S. holder in light of its particular circumstances, nor does it address any state, local or foreign tax laws. Prospective non-U.S. investors should consult their own tax advisors regarding the U.S. federal, state, local and non-U.S. tax consequences of the acquisition, ownership and disposition of shares.

A "non-U.S. holder" is a beneficial owner of our common stock or warrants (other than a partnership or entity treated as a partnership for U.S. federal income tax purposes) that is not, for U.S. federal income tax purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • an individual who is a citizen or resident of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a corporation (or other entity treated as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the United States or any political subdivision thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • an estate the income of which is subject to U.S. federal income taxation regardless of its source; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a trust if it (i) is subject to the primary supervision of a court within the United States and one or more U.S. persons have authority to control all substantial decisions of the trust or (ii) has a valid election in effect under applicable Treasury Regulations to be treated as a U.S. person.

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#### LEGAL MATTERS
Certain legal matters relating to the offering as to U.S. federal law and the law of the State of Minnesota in connection with this offering will be passed upon for us by Holland & Hart LLP, Denver, CO. Certain legal matters will be passed on for the underwriters by Maslon LLP, Minneapolis, MN.

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#### EXPERTS
The financial statements of the Company as of and for the fiscal years ended December 31, 2024 and 2023 included in this prospectus have been audited by Boulay, PLLP, independent registered public accounting firm as set forth in their report thereon appearing elsewhere herein, and included in reliance on such report upon the authority of said firm as experts in accounting and auditing.

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#### WHERE YOU CAN FIND MORE INFORMATION
We have filed with the SEC a registration statement on Form S-1 under the Securities Act with respect to the shares of common stock offered hereby. This prospectus, which constitutes a part of the registration statement, does not contain all of the information set forth in the registration statement or the exhibits filed therewith. For further information about us and the shares of common stock offered hereby, reference is made to the registration statement and the exhibits filed therewith. Statements contained in this prospectus regarding the contents of any contract or any other document that is filed as an exhibit to the registration statement are not necessarily complete, and in each instance, we refer you to the copy of such contract or other document filed as an exhibit to the registration statement.

Upon completion of this offering, we will be subject to the information and reporting requirements of the Exchange Act and will file annual, quarterly, and current reports, proxy statements, and other information with the SEC. You can read our U.S. Securities and Exchange Commission filings, including the registration statement, online at *www.sec.gov*.

We also maintain a website at https://www.encore-medical.com, at which, following the completion of this offering, you may access these materials free of charge as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC. Information contained on our website is not a part of this prospectus, and the inclusion of our website address in this prospectus is an inactive textual reference only.

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#### Index to Financial Statements

---

| | |
|:---|:---|
| [REPORT OF INDEPENDENT PUBLIC ACCOUNTING FIRM](#tfRIP)  | [F-2](#tfRIP) |
| [BALANCE SHEETS](#tfBAL)  | [F-4](#tfBAL) |
| [STATEMENTS OF OPERATIONS](#tfSTOF)  | [F-5](#tfSTOF) |
| [STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)](#tfSTOSE)  | [F-6](#tfSTOSE) |
| [STATEMENTS OF CASH FLOWS](#tfSOCF)  | [F-7](#tfSOCF) |
| [NOTES TO FINANCIAL STATEMENTS](#tfNTFS)  | [F-8](#tfNTFS) |

---

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![[MISSING IMAGE: lg_boulay-4c.jpg]](lg_boulay-4c.jpg)

#### REPORT OF INDEPENDENT PUBLIC ACCOUNTING FIRM
To the Stockholders and the Board of Directors

of Encore Medical, Inc.

#### Opinion on the Financial Statements
We have audited the accompanying balance sheets of Encore Medical, Inc. (the Company) as of December 31, 2024 and 2023, and the related statements of operations, stockholders' equity (deficit) and cash flows for the two years then ended, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the two years then ended in conformity with accounting principles generally accepted in the United States of America.

#### Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We are a public accounting firm registered with the Public Company Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

#### Substantial Doubt about the Company's Ability to Continue as a Going Concern
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has incurred net losses

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and negative operating cash flows for the years ended December 31, 2024 and 2023 and has negative working capital as of December 31, 2024. These factors raise substantial doubt about the Company's ability to continue as a going concern for a period of one year from the issuance of the financial statements. Management's evaluation of the events and conditions and management's plans regarding those matters are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our opinion is not modified with respect to that matter.

![[MISSING IMAGE: sg_boulaypllp-bw.jpg]](sg_boulaypllp-bw.jpg)

We have served as the Company's auditor since 2024. Minneapolis,

Minnesota

September 4, 2025

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#### ENCORE MEDICAL, INC.

#### B alance Sheets

---

| | | | |
|:---|:---|:---|:---|
| | **December 31,**  | **December 31,**  | **June 30, <br> 2025**  |
| | **2024**  | **2023**  | **June 30, <br> 2025**  |
|  |  |  | **(Unaudited)**  |
| ASSETS  |  |  |  |
| Current assets |  |  |  |
| Cash  | $246829 | $305272 | $48363 |
| Accounts receivable  | 349472 |  | 473110 |
| Accounts receivable – related party  |  | 381727 |  |
| Inventory  | 373598 | 466160 | 395330 |
| Prepaid expenses and other current assets  | 40564 | 25044 | 19361 |
| Total Current Assets  | 1010463 | 1178202 | 936164 |
| Property and Equipment  | 37443 | 43600 | 34860 |
| Operating Lease Right-of-Use Asset  | 402149 | 471107 | 365167 |
| &nbsp;&nbsp;&nbsp; TOTAL ASSETS  | $1450054 | $1692909 | $1336191 |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)  |  |  |  |
| Current liabilities |  |  |  |
| Accounts payable  | $417424 | $88453 | $375445 |
| Accounts payable – related party  |  |  | $15305 |
| Accrued interest  | 92396 | 16658 | 132595 |
| Accrued Expenses  | 377313 | 219205 | 253224 |
| Short term debt  | 50000 | 45625 | 165000 |
| Current operating lease liability  | 74144 | 64024 | 79642 |
| Total current liabilities  | 1011278 | 433965 | 1021211 |
| Long term debt  | 1000000 | 1000000 | 1000000 |
| Non-current operating lease liability  | 346772 | 420916 | 305537 |
| &nbsp;&nbsp;&nbsp; Total liabilities  | $2358049 | $1854880 | $2326749 |
| Commitments and contingent liabilities (Note 13) |  |  |  |
| Stockholders' Equity (Deficit) |  |  |  |
|  Series A Preferred Stock, par value $0.01, 1,200,000 shares authorized at December 31, 2024 and 2023 and June 30, 2025 (unaudited); 876,000 shares issued and outstanding as of December 31, 2024, and 2023 and June 30, 2025 (unaudited)  | 8760 | 8760 | 8760 |
|  Common Stock, par value $0.01, 10,000,000 shares authorized at December 31, 2024 and 2023 and June 30, 2025 (unaudited); 5,717,425, 5,636,425 and 5,867,425 shares issued and outstanding as of December 31, 2024 and 2023 and June 30, 2025 (unaudited)  | 57174 | 56364 | 58674 |
| Additional paid in capital  | 4916950 | 3817833 | 5073638 |
| Accumulated deficit  | (5890880) | (4044929) | (6131630) |
| &nbsp;&nbsp;&nbsp; Total stockholders' equity (deficit)  | (907995) | (161972) | (990558) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)  | $1450054 | $1692909 | $1336191 |

---

The accompanying notes are an integral part of these financial statements.

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#### ENCORE MEDICAL, INC.

#### S tatements of Operations

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Year Ended <br> December 31,**  | **For the Year Ended <br> December 31,**  | **For the Six Months Ended <br> June 30,**  | **For the Six Months Ended <br> June 30,**  |
| | **2024**  | **2023**  | **2025**  | **2024**  |
|  |  |  | **(unaudited)**  | **(unaudited)**  |
| **Net Sales**  | $2134528 | $1434424 | $1010092 | $1047571 |
| **Cost of goods sold**  | 1361077 | 912078 | 602083 | 784796 |
| **Gross profit**  | 773451 | 522346 | 408008 | 262774 |
| **Operating expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Selling, general and administrative  | 1555653 | 1211152 | 538533 | 535586 |
| &nbsp;&nbsp;&nbsp; Stock compensation expense  | 696101 | 7936 | 8188 | 67257 |
| Clinical trial expense  | 142672 | 550570 | 56669 | 103305 |
| &nbsp;&nbsp;&nbsp; Regulatory expense  | 145297 | 124421 | 4964 | 24651 |
| **Total operating expenses**  | 2539723 | 1894079 | 608353 | 730799 |
| **Operating loss**  | (1766272) | (1371733) | (200345) | (468025) |
| Non-operating expense |  |  |  |  |
| Interest expense  | 79679 | 15124 | 40405 | 39629 |
| &nbsp;&nbsp;&nbsp; Total non-operating expense  | 79679 | 15124 | 40405 | 39629 |
| **Net loss before income taxes**  | (1845951) | (1386857) | (240750) | (507653) |
| Income taxes  |  |  |  |  |
| **Net Loss**  | $(1845951) | $(1386857) | $(240750) | $(507653) |
| Net loss per share – basic and diluted  | $(0.33) | $(0.25) | $(0.04) | $(0.09) |
|  Weighted average common shares outstanding – basic and diluted  | 5661954 | 5636425 | 5781237 | 5636425 |

---

The accompanying notes are an integral part of these financial statements.

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#### ENCORE MEDICAL, INC.

#### S tatements of Stockholders' Equity (Deficit)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Series A <br> Preferred Stock**  | **Series A <br> Preferred Stock**  | **Common Shares**  | **Common Shares**  | **APIC**  | **Accumulated <br> Deficit**  | **Total**  |
| | **Shares**  | **Amount**  | **Shares**  | **Amount**  | **APIC**  | **Accumulated <br> Deficit**  | **Total**  |
| **Balance, December 31, 2022**  | **876000** | **8760** | **5636425** | $**56364** | $**3809897** | $**(2658072)** | $**1216949** |
| Stock Based Compensation  |  |  |  |  | 7936 |  | 7936 |
| Net loss  |  |  |  |  |  | (1386857) | (1386857) |
| **Balance, December 31, 2023**  | **876000** | $**8760** | **5636425** | $**56364** | $**3817833** | $**(4044929)** | $**(161972)** |
| Stock Based Compensation  |  |  |  |  | 696101 |  | 696101 |
|  Sale of Common Stock, net of sales expense  |  |  | 81000 | 810 | 403016 |  | 403826 |
| Net loss  |  |  |  |  |  | (1845951) | (1845951) |
| **Balance, December 31, 2024**  | **876000** | $**8760** | **5717425** | $**57174** | $**4916950** | $**(5890880)** | $**(907995)** |
|  Stock Based Compensation (unaudited)  |  |  |  |  | 8188 |  | 8188 |
|  Exercise of Stock Options (unaudited)  |  |  | 150000 | $1500 | 148500 |  | 150000 |
| Net loss (unaudited)  |  |  |  |  |  | (240750) | (240750) |
|  **Balance, June 30, 2025 (unaudited)**  | **876000** | $**8760** | **5867425** | $**58674** | $**5073638** | $**(6131630)** | $**(990558)** |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Series A <br> Preferred Stock**  | **Series A <br> Preferred Stock**  | **Common Shares**  | **Common Shares**  | **APIC**  | **Accumulated <br> Deficit**  | **Total**  |
| | **Shares**  | **Amount**  | **Shares**  | **Amount**  | **APIC**  | **Accumulated <br> Deficit**  | **Total**  |
| **Balance, December 31, 2023**  | **876000** | $**8760** | **5636425** | $**56364** | $**3817833** | $**(4044929)** | $**(161972)** |
|  Stock Based Compensation (unaudited)  |  |  |  |  | 67257 |  | 67257 |
|  Exercise of Stock Options (unaudited)  |  |  |  |  |  |  |  |
| Net loss (unaudited)  |  |  |  |  |  | (507653) | (507653) |
|  **Balance, June 30, 2024 <br> (unaudited)**  | **876000** | $**8760** | **5636425** | $**56364** | $**3885090** | $**(4552582)** | $**(602368)** |

---

The accompanying notes are an integral part of these financial statements.

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#### ENCORE MEDICAL, INC.

#### S tatements of Cash Flows

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year Ended <br> December 31,**  | **Year Ended <br> December 31,**  | **Six Months Ended <br> June 30,**  | **Six Months Ended <br> June 30,**  |
| | **2024**  | **2023**  | **2025**  | **2024**  |
|  |  |  | **(unaudited)**  | **(unaudited)**  |
| CASH FLOWS FROM OPERATING ACTIVITIES  |  |  |  |  |
| Net loss  | $(1845951) | $(1386857) | $(240750) | $(507653) |
|  Adjustments to reconcile net loss to net cash used in operating activities:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Depreciation  | 6157 | 6161 | 3083 | 3079 |
| &nbsp;&nbsp;&nbsp; Amortization of debt discount  | 4375 | 625 |  | 2500 |
| &nbsp;&nbsp;&nbsp; Stock based compensation  | 696101 | 7936 | 8188 | 67257 |
| &nbsp;&nbsp;&nbsp; Non-cash lease expense  | 4935 | 13832 | 1246 | 2868 |
| &nbsp;&nbsp;&nbsp; Accounts receivable  | (349472) |  | (123638) | (115961) |
| &nbsp;&nbsp;&nbsp; Accounts receivable – related party  | 381727 | 18171 |  | 125673 |
| &nbsp;&nbsp;&nbsp; Inventory  | 92562 | (466160) | (21733) | (125233) |
| &nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets  | (15521) | (16455) | 21203 | (6549) |
| &nbsp;&nbsp;&nbsp; Accounts payable  | 328971 | 46470 | (41979) | 127259 |
| &nbsp;&nbsp;&nbsp; Accounts payable – related party  |  |  | 15305 |  |
| &nbsp;&nbsp;&nbsp; Accrued interest  | 75738 | 16658 | 40199 | 37397 |
| &nbsp;&nbsp;&nbsp; Accrued Expenses  | 158108 | 99157 | 25910 | 168133 |
| Net Cash Used in Operating Activities  | (462269) | (1660462) | (312966) | (221230) |
| CASH FLOWS FROM INVESTING ACTIVITIES  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Purchases of property and equipment  |  | (12088) | (500) |  |
| Net Cash Used in Investing Activities  |  | (12088) | (500) |  |
| CASH FLOWS FROM FINANCING ACTIVITIES  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Proceeds from short term debt  |  | 50000 | 115000 |  |
| &nbsp;&nbsp;&nbsp; Deferred financing costs  |  | (5000) |  | (2500) |
| &nbsp;&nbsp;&nbsp; Proceeds from long term debt  |  | 1000000 |  |  |
| &nbsp;&nbsp;&nbsp; Proceeds from sale of common stock  | 403826 |  |  |  |
| &nbsp;&nbsp;&nbsp; Proceeds from issuance of Series A Preferred <br> Stock  |  |  |  |  |
| Net Cash Provided by Financing Activities  | 403826 | 1045000 | 115000 | (2500) |
| Net Increase in Cash  | (58443) | (627550) | (198466) | (223730) |
| Cash at Beginning of Period  | 305272 | 932821 | 246829 | 305272 |
| Cash at End of Period  | $246829 | $305272 | $48363 | $81542 |
|  <u>SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</u>  |  |  |  |  |
| Cash paid during the year for: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Interest  | $— | $— | $— | $— |
| &nbsp;&nbsp;&nbsp; Income taxes paid  | $— | $— | $— | $— |
|  <u>SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES</u>  |  |  |  |  |
|  Noncash stock option exercise in lieu of accrued payroll due to officer  |  |  | $150000 |  |

---

The accompanying notes are an integral part of these financial statements.

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#### ENCORE MEDICAL, INC.

#### NOTES TO FINANCIAL STATEMENTS

#### Note 1. Nature of Business

#### Nature of Business:
Encore Medical, Inc. (the "Company") develops, manufactures, and markets septal occlusion products, which are small, implantable devices delivered through a catheter inserted into a major blood vessel to permanently repair certain cardiac defects. To date, the Company's products have been implanted in approximately 35,000 patients outside the United States. Procedures are performed in a cardiac catheterization lab and reduce the need for open-heart surgery or a lifetime of drug therapy, which are currently the alternative methods of treating these defects.

Encore Medical, Inc. was formed in 2017 as a subsidiary of Cardia, Inc., ("Cardia") in Eagan, Minnesota. As of October 1, 2020, Encore ceased to be a subsidiary of Cardia pursuant to a tax-free spin-off to shareholders under section 355 of the Internal Revenue Code of 1986, as amended.

The Company has obtained CE Mark approval for its products, which is a prerequisite for the general sale of medical devices in the European Union and is currently marketing and selling septal occlusion devices for the closure of certain cardiac defects in countries outside the United States.

Currently, the Company does not have regulatory approval to sell its products in the United States. However, the Company has completed significant steps required to obtain Class III market clearance for its patent foramen ovale ("PFO") septal occlusion device through the United States Food and Drug Administration's (the "FDA") investigational device exemptions ("IDE")/premarket approval ("PMA") application process. Such FDA approval will allow the Company to market its products throughout the United States.

#### Liquidity and Capital Resources
As of December 31, 2024, the Company had cash of $246,829 and working capital of $(815), compared to cash of $305,272 and working capital of $744,965 as of December 31, 2023. The decrease in cash was primarily attributable to the use of cash in operations. As of June 30, 2025 (unaudited), the Company had cash of $48,363 and negative working capital of $(85,047). The Company's primary sources of liquidity are cash on hand, cash generated from operations, and management of short-term payables and accruals.

#### Going Concern Considerations
The Company has incurred recurring losses from operations and had a net loss of $(1,845,951) and negative operating cash flows of $(462,269) for the year ended December 31, 2024. As of December 31, 2024, the Company had an accumulated deficit of $5,890,880. For the six months ended June 30, 2025 (unaudited) the Company had a net loss of $(240,750) and negative operating cash flows of $(312,966). As of June 30, 2025 (unaudited) the Company had an accumulated deficit of $6,131,630. These factors raise substantial doubt about the Company's ability to continue as a going concern for a period of one year from the issuance of these financial statements.

Management is currently pursuing capital raises and believes that these plans, if successful, will mitigate the conditions that raise substantial doubt. However, the outcome of these plans is uncertain, and there is no assurance that the Company will be successful in executing them.

While management believes that the Company can successfully resolve its liquidity issues through these initiatives, there is significant uncertainty regarding the outcome. Due to these conditions, Management has concluded substantial doubt exists about the Company's ability to continue as a going concern for the twelve-month period following the issuance of the financial statements. The Company expects to alleviate its going concern issue after the conclusion of a public offering that is in progress.

The accompanying financial statements have been prepared on a going concern basis, which assumes the Company will continue in operation and realize its assets and discharge its liabilities in the ordinary

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course of business. However, due to the uncertainties discussed above, it is possible that the Company may not be able to continue as a going concern. If the Company is unable to continue as a going concern, significant adjustments would be required to the carrying values of its assets and liabilities, and it may be required to significantly reduce or cease its operations.

The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

#### Note 2. Summary of Significant Accounting Policies

#### Basis of Presentation
The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Operating results for the year ended December 31, 2024 are not necessarily indicative of results to be expected for any future year.

#### Unaudited Interim Financial Information
The accompanying balance sheet as of June 30, 2025, the statements of operations stockholders' equity (deficit), and cash flows for the six months ended June 30, 2025 and 2024, are unaudited. The financial data and other information disclosed in these notes to the financial statements related to June 30, 2025, and the six months ended June 30, 2025 and 2024 are also unaudited. The unaudited interim financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to a fair statement of the Company's financial position as of June 30, 2025, and the results of its operations and cash flows for the six months ended June 30, 2025 and 2024. These interim financial results are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period.

#### Use of Estimates
The preparation of financial statements in conformity U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant estimates, including the underlying assumptions, consist of the allowance for credit losses on trade receivables, valuation allowance on deferred tax assets, inventory obsolescence, stock-based compensation expense and valuation of common stock warrants. It is at least reasonably possible that these estimates may change in the near term. Actual results could differ from those estimates.

#### Cash
The Company maintains its cash primarily in one bank deposit account, which, at times, may exceed federally insured limits. The Company has not experienced any losses on this account. The Company believes it is not exposed to significant credit risk on cash.

#### Trade Receivables and Credit Policies
Trade receivables are uncollateralized customer obligations due under normal trade terms. Trade receivables are stated at the amount billed to the customer. Customer account balances with invoices over 90 days are considered delinquent. The Company does not accrue interest on delinquent trade receivables.

Payments of trade receivables are allocated to the specific invoices identified on the customer's remittance advice or, if unspecified, are applied to the earliest unpaid invoices.

The Company maintains an allowance for credit losses on trade receivables, which is recorded as an offset to trade receivables. Changes in the allowance for credit losses are included as a component of operating expenses in the Statements of Operations. The Company assesses credit losses on a collective basis where similar risk characteristics exist. Receivables that do not share risk characteristics with other receivables, or where known collectability issues exist, are evaluated on an individual basis.

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The allowance is based on the credit losses expected to arise over the life of the receivable (contractual term). The Company considers historical loss rates and current economic conditions. Receivables are written off against the allowance for credit losses. The allowance for credit losses was $0 at December 31, 2024 and 2023 and June 30, 2025 (unaudited).

At January 1, 2023, net accounts receivable was $399,898.

#### Concentrations
As of December 31, 2024 and 2023, the Company had four customers that exceeded 10% of the accounts receivable balance. These customers individually had 32.9%, 25.3%, 13.6% and 11.8% of total accounts receivables at December 31, 2024.

As of June 30, 2025, the Company had three customers that exceeded 10% of total accounts receivable. These customers individually had 43.7%, 15.4%, and 13.7% of total accounts receivables at June 30, 2025 (unaudited)

#### Fair Value Measurements
The Company's policies incorporate the guidance for accounting for fair value measurements of financial assets and financial liabilities and for fair value measurements of non-financial items that are recognized or disclosed at fair value in the financial statements on a recurring basis and on a nonrecurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Level 3 inputs are unobservable inputs for the asset or liability.

The level in the fair value hierarchy within which a fair measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company currently has no non-financial or financial items that are measured on a nonrecurring basis.

The carrying values of accounts receivables, accounts payable, and other financial working capital items approximate fair value at December 31, 2024 and 2023 and June 30, 2025 (unaudited) due to the short-term maturity of these instruments.

#### Inventories
Inventories include raw materials, work in process and finished goods and are stated at the lower of cost (first-in, first-out method) or net realizable value. The Company's industry is characterized by rapid product development and frequent new product introductions. Uncertain timing of regulatory approvals, variability in product launch strategies and variation in product sales all impact inventory reserves for excess, obsolete and expired products. An increase to inventory reserves results in a corresponding increase in cost of goods sold in the statement of operations. Inventories are written off against the reserve when they are physically disposed. Based on current conditions, the Company has no inventory reserve as of December 31, 2024, and 2023 and June 30, 2025 (unaudited).

#### Property and Equipment
Property and equipment are stated at cost less accumulated depreciation. Depreciation is determined using the straight-line method over the estimated useful life. The estimated useful life of leasehold improvements is the shorter of the estimated life or the lease term. The estimated useful lives of furniture,

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fixtures, computers and office and manufacturing equipment are three to seven years. Maintenance and repairs are expensed as incurred. Major improvements and betterments are capitalized.

#### Leases
The Company determines if an arrangement is a lease at inception. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The right to control the use of an asset includes the right to obtain substantially all of economic benefits of the underlying asset and the right to direct how and for what purpose the asset is used. The Company leases an office and manufacturing facility under a lease that qualifies as an operating lease, as determined at the inception of the lease arrangement. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make payments under the lease. Lease assets and liabilities are measured and recorded at the commencement date based on the present value of payments over the lease term.

Lease assets and liabilities include lease incentives and options to extend or terminate when it is reasonably certain the Company will exercise that option. The Company uses the implicit rate when readily determinable, however, as most leases do not provide an implicit rate, the Company generally uses its incremental borrowing rate. The Company also applies the short-term lease recognition exemption, recognizing lease payments in profit or loss, for lease terms of 12 months or less at commencement and with no option to extend the lease whose exercise is reasonably certain. The Company accounts for the lease and non-lease components as a single lease component.

The Company's incremental borrowing rate is a hypothetical collateralized borrowing rate based on its understanding of what its credit rating would be. The operating lease ROU asset includes any lease payments made and excludes lease incentives.

Operating leases are included in operating lease right-of-use (ROU) assets and operating lease liabilities. The short-term portions of lease liabilities are included in current liabilities. Operating lease expense is recognized on a straight-line basis over the lease term. See Note. 8 — Operating Leases for further discussion.

#### Long-Lived Assets
Long-lived assets, such as property and equipment and right of use assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require the Company to test a long-lived asset for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, the Company recognizes impairment to the extent that the carrying value of an asset exceeds its fair value. The Company determines fair value through various valuation techniques including, but not limited to, discounted cash flow models, quoted market values and third-party independent appraisals. No impairment was recognized during 2024 and 2023 and during the six months ended June 30, 2025 and 2024 (unaudited).

#### Revenue Recognition
The Company determines revenue recognition through the following steps:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Identification of the contract or contracts with a customer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Identification of performance obligations in the contract

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Determination of the transaction price

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Allocation of the transaction price to the performance obligations in the contract

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Recognition of revenue when or as the Company satisfies the performance obligations

Revenue is generated from the sale of medical devices. The Company recognizes revenue and transfers control to the customer when shipment of the device occurs. Shipping and handling activities are considered activities to fulfill the promise to transfer the device. Shipping and handling revenues are not material in the years ended December 31, 2024, and 2023 and the six months ended June 30, 2025 (unaudited).

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Products are sold primarily through a direct sales force and through distributors. Terms of sale are generally consistent for both end-users and distributors, except that payment terms are generally net 30 days for end-users and net 60 days for distributors, with some exceptions. The Company does not maintain any post-shipping obligations to customers; no installation, calibration or testing of products is performed subsequent to shipping in order to render products operational. The Company expects to be entitled to the total consideration for the products ordered as product pricing is fixed, and there are no adjustments for a significant financing component as payment terms fall within one year. The Company excludes taxes assessed by governmental authorities on revenue- producing transactions from the measurement of the transaction price.

Costs associated with product sales include commissions expenses. There are no royalty expenses. As revenue from product sales is recognized at a point in time, commissions expenses are recognized as incurred. Commissions expenses are included in selling, general and administrative expenses in the statements of operations.

Significant judgments and estimates involved in the Company's recognition of revenue include the estimation of a provision for returns. In the normal course of business, the Company is not obligated to accept product returns unless a product is defective as manufactured. The Company does not provide customers with the right to a refund. Based on the Company's history of minimal product returns, there is no sales returns and allowance as of December 31, 2024, and 2023 and June 30, 2025 (unaudited).

#### Research and Development
Research and development costs include internal and external costs associated with the development and research of new and existing products or concepts, preclinical studies, clinical trials and studies and related regulatory activities. Research and development costs are expensed as incurred. Research and development costs were not material in 2024 and 2023 and the six months ended June 30, 2025 (unaudited) and are included in selling, general and administrative expenses in the statements of operations. Clinical trial expenses incurred by third parties are expensed as contracted work is performed over the expected service period. Clinical trial expenses are separately presented in the statements of operations.

#### Income Taxes
The Company accounts for income taxes using the asset and liability method, as required by the accounting standard for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases along with operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities from a change in tax rates is recognized in the statements of operations in the period that includes the enactment date.

The Company's estimate of the valuation allowance for deferred income tax assets requires significant estimates and judgments about future operating results. Deferred income tax assets are reduced by valuation allowances if, based on the consideration of all available evidence, it is more-likely-than-not that a deferred income tax asset will not be realized. Significant weight is given to evidence that can be objectively verified. The Company evaluates deferred income tax assets on an annual basis to determine if valuation allowances are required by considering all available evidence. Deferred income tax assets are realized by having sufficient future taxable income to allow the related tax benefits to reduce taxes otherwise payable. The sources of taxable income that may be available to realize the benefit of deferred income tax assets are future taxable income, future reversals of existing taxable temporary differences, taxable income in prior carryforward years and tax planning strategies that are both prudent and feasible. In evaluating the need for a valuation allowance, the existence of cumulative losses since inception is significant objectively-verifiable negative evidence that must be overcome by objectively-verifiable positive evidence to avoid the need for a valuation allowance. The Company's valuation allowance offsets all net deferred income tax assets as it is more-likely-than-not that the benefit of the deferred income tax assets will not be recognized in future periods. The Company has not reclassified income tax effects of the Tax Cuts and Jobs Act within accumulated other comprehensive (loss) income to accumulated deficit due to its full valuation allowance.

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The Company recognizes the impact of an uncertain tax position in its financial statements if, in management's judgment, the position is more-likely-than-not sustainable upon audit based on the position's technical merits. This involves the identification of potential uncertain tax positions, the evaluation of applicable tax laws and an assessment of whether a liability for an uncertain tax position is necessary.

#### Stock-Based Compensation
The Company records compensation expense for stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton ("BSM") option-pricing model. The estimated grant date fair value is expensed over the requisite grant's service period as stock-based compensation expense. The Company uses historical data from comparable medical device companies, among other factors, to estimate the expected price volatility. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the estimated life of the option. The expected term of stock options represents the weighted-average period the stock options are expected to remain outstanding. The Company does not have sufficient historical exercise and post-vesting termination activity to provide accurate data for estimating the expected term of options and has opted to use the "simplified method," whereby the expected term equals the arithmetic average of the vesting term and the original contractual term of the option. The Company accounts for forfeitures as they occur. At December 31, 2024 and 2023, and June 30, 2025 (unaudited) the Company had one stock-based compensation plan.

#### Risks and Uncertainties
The Company is subject to risks common to companies in the development stage including, but not limited to, dependency on the clinical and commercial success of its devices, the ability to obtain regulatory approvals, the need for substantial additional financing to achieve its goals, uncertainty of broad adoption of its approved products, if any, by physicians and consumers, and significant competition.

#### Recently Issued Accounting Pronouncements
The Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU") *Disaggregation of Income Statement Expenses* in November 2024 and issued ASU 2025-01 in January 2025 to clarify its effective date. This ASU provides investors with more decision-useful information about a business entity's expenses. The ASU requires companies to provide detailed disclosure of specified categories underlying certain expense captions in interim and annual periods. It would provide investors with more detailed information about the types of expenses, including employee compensation, depreciation, amortization, and costs incurred related to inventory and manufacturing activities in income statement expense captions such as cost of sales; selling, general and administrative; and research and development. The ASU does not change or remove existing expense disclosure requirements and does not change requirements for presentation of expenses on the face of the income statement. It requires companies to include certain existing disclosures in the same tabular format disclosure. The ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this standard on its financial statements.

#### Recently Adopted Accounting Standard
In November 2023, the FASB issued ASU 2023-07 *Improvements to Reportable Segment Disclosures.* This ASU, which amends Topic 280: *Segment Reporting,* improves disclosures requirements for reportable segments and enhances disclosures for companies with single reportable segments. The Company has a single reportable segment based on the nature of its services and regulatory environment under which it operates. The nature of the business and the accounting policies of the segment are the same as described throughout Note 1. The Company's Chief Operating Decision Maker ("CODM") is its president. The CODM assesses the reportable segment's performance and allocates resources for the reportable segment based on the net income and total assets which are the same amounts in all material respects as those reported on the Statement of Operations and Balance Sheets. The Company adopted the standard on January 1, 2024. The adoption did not have a material impact on the Company's financial statements.

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#### Subsequent Events
The Company evaluates events and transactions that occur after the balance sheet date but before the financial statements are issued (or are available to be issued) to determine whether any such events should be recognized or disclosed in the financial statements. The Company has evaluated subsequent events through September 4, 2024, the date these financial statements were issued, and has determined that no events or transactions have occurred that would require recognition or disclosure.

#### Note 3. Net Loss Per Share
Basic and diluted net loss per share is computed by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net loss per share is the same as basic net loss per share because the effects of potentially dilutive items were anti-dilutive given the Company's net loss position during the years ended December 31, 2024 and 2023 and during the six months ended June 30, 2025 and 2024 (unaudited).

The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year Ended <br> December 31,**  | **Year Ended <br> December 31,**  | **Six Months Ended <br> June 30,**  | **Six Months Ended <br> June 30,**  |
| | **2024**  | **2023**  | **2025**  | **2024**  |
|  |  |  | **(unaudited)**  | **(unaudited)**  |
| Numerator: |  |  |  |  |
| Net loss  | $(1845951) | $(1386857) | $(240750) | $(507653) |
| Net loss attributable to common stockholders  | $(1845951) | $(1386857) | $(240750) | $(507653) |
| Denominator: |  |  |  |  |
|  Weighted-average shares used to compute <br> net loss per share, basic and diluted  | 5661954 | 5636425 | 5781237 | 5636425 |
|  Net loss per share attributable to common <br> stockholders, basic and diluted  | $(.33) | $(.25) | $(.04) | $(.09) |

---

The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the period presented because including them would have been antidilutive:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31,**  | **December 31,**  | **June 30,**  | **June 30,**  |
| | **2024**  | **2023**  | **2025**  | **2024**  |
|  |  |  | **(unaudited)**  | **(unaudited)**  |
| Outstanding options to purchase common stock  | 638000 | 416000 | 463000 | 453000 |
| Common stock warrants  | 542080 | 542080 | 542080 | 542080 |
| Total  | 1180080 | 958080 | 1005080 | 995080 |

---

#### Note 4. Inventories
Inventories used in the determination of cost of goods sold are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **December 31,**  | **December 31,**  | **June 30, <br> 2025**  |
| | **2024**  | **2023**  | **June 30, <br> 2025**  |
|  |  |  | **(unaudited)**  |
| Raw Materials  | $**213299**  | $377161 | $272850 |
| Work In Process  | 14588 | 26454 | 49925 |
| Finished Goods  | 145711 | 62545 | 119556 |
| **Total Inventories**  | $**373598**  | $466160 | $442731 |

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#### Note 5. Property and Equipment
Property and equipment consists of the following:

---

| | | | |
|:---|:---|:---|:---|
| | **December 31,**  | **December 31,**  | **June 30, <br> 2025**  |
| | **2024**  | **2023**  | **June 30, <br> 2025**  |
|  |  |  | **(unaudited)**  |
| Equipment  | $**46826**  | $46826 | $47326 |
| Leasehold improvements  | 7185 | 7185 | 7185 |
|  | 54011 | 54011 | 54511 |
| Accumulated depreciation  | (16568) | (10411) | (19651) |
| Total Property and Equipment  | $**37443**  | $**43600**  | $**34860**  |

---

Depreciation expense was $6,157, $6,16, 3,083 and $3,079 for the years ended December 31, 2024 and 2023 and the six months ended June 30, 2025 and 2024 (unaudited), respectively.

#### Note 6. Accrued Expenses
Accrued expenses consists of the following:

---

| | | | |
|:---|:---|:---|:---|
| | **December 31,**  | **December 31,**  | **June 30, <br> 2025**  |
| | **2024**  | **2023**  | **June 30, <br> 2025**  |
|  |  |  | **(unaudited)**  |
| Wages and commissions  | $**304308**  | $105486 | $186182 |
| Other  | 76005 | 113719 | 67042 |
| **Total Accrued Expenses**  | $**377313**  | $219205 | $253224 |

---

#### Note 7. Debt

#### Short-Term Debt
At December 31, 2024 and 2023 and June 30, 2025 (unaudited), the Company's short-term debt included a $50,000 unsecured promissory note with a board member. The note was obtained on October 11, 2023, bears interest at 10% and included a 10% origination fee. The note matured on September 30, 2024 and is currently callable at the discretion of the lender. The note includes a 2% penalty for late payment.

On May 15, 2025, the Company obtained a $200,000 line of credit with Cardia, Inc. a related party. As of June 30, 2025, $115,000 was drawn against the line of credit. The line of credit bears interest at 6% and matures on May 15, 2026 and can be renewed for additional terms by mutual agreement of both parties (unaudited). See footnote 11 — Related Party Transactions for further discussion.

#### Long-Term Debt
At December 31, 2024 and 2023 and June 30, 2025 (unaudited), the Company's long-term debt consisted of a $1,000,000 promissory note with an unrelated company. The note was obtained on November 6, 2023, bears interest at 7.0%, compounded annually and matures on November 6, 2026. The note has no scheduled payments during its term and is secured by all tangible and intangible assets of the Company. The Company was in compliance with all covenants as of December 31, 2024 and June 30, 2025 (unaudited).

The issuer of the note was granted a right of first refusal on all future stock issuances by the Company. This right expires at the later of November 6, 2026, and 2 years after the repayment in full of all note obligations.

#### Note 8. Operating Leases
On February 3, 2023 the Company entered into a lease with a third party for 7,459 square feet of office and manufacturing space located in Eagan, Minnesota, with a commencement date of April 1, 2023 and

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maturing on May 31, 2029. As a result of this agreement, the Company recognized an ROU asset and lease liability of $513,823 pursuant to ASC 842*, "*Leases".

The components of lease expense and supplemental cash flow information related to this lease for the years ended December 31, 2024, and 2023 and the six months ended June 30, 2025 and 2025 (unaudited) are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31,**  | **December 31,**  | **June 30,**  | **June 30,**  |
| | **2024**  | **2023**  | **2025**  | **2024**  |
|  |  |  | **(unaudited)**  | **(unaudited)**  |
| <u>Lease Costs:</u> |  |  |  |  |
| Operating lease cost  | $114601 | $106401 | $57300 | $56499 |
| Short-term lease cost  | 12000 | 11000 | 0 | 6000 |
| Variable lease cost  | 42346 | 26831 | 28025 | 23392 |
| Total Lease costs:  | $168947 | $144231 | $85325 | $85891 |
| <u>Supplemental Cash Flow Information:</u> |  |  |  |  |
|  Cash paid for amounts included in the measurement of lease liabilities: <br> Operating cash flows from operating leases  | $64024 | $58390 | $35737 | $30812 |
| &nbsp;&nbsp;&nbsp; ROU assets obtained in exchange for lease obligations  | $0 | $513823 | $0 | $0 |

---

Future maturities of the Company's lease liabilities are as follows:

---

| | | |
|:---|:---|:---|
| **Year ending**  | **December 31, 2024**  | **June 30, 2025**  |
|  |  | **(unaudited)**  |
| 2025  | $112929 | $56875 |
| 2026  | 116323 | 116323 |
| 2027  | 119810 | 119810 |
| 2028  | 123428 | 123428 |
| 2029  | 52431 | 52431 |
| Total lease payments  | 524921 | 468866 |
| Less: Imputed interest/present value discount  | (104005) | (83687) |
| Total lease liability  | $420916 | $385179 |
| <u>Other Information</u> |  |  |
| &nbsp;&nbsp;&nbsp; Weighted-average remaining lease term (in years):  | 4.4 | 3.9 |
| &nbsp;&nbsp;&nbsp; Weighted-average discount rate  | 10.0% | 10.0% |
| &nbsp;&nbsp;&nbsp; Right of use asset  | $402149 | $365167 |

---

#### Note 9. Stockholders (Deficit) Equity

#### Common Stock
As of December 31, 2024, and 2023 and June 30, 2025 (unaudited), the Company had 10,000,000 shares of Common Stock authorized and 5,717,425, 5,636,425 and 5,867,425 shares of Common Stock issued and outstanding, with a par value of $0.01 per share, respectively.

During 2024, the Company sold 81,000 shares of common stock for $5.00 per share, less offering costs. All sales were to unrelated parties.

#### Series A Preferred Stock
As of December 31, 2024 and 2023 and June 30, 2025 (unaudited), the Company had 1,200,000 shares of Series A Preferred Stock authorized and 876,000 shares of Series A Preferred Stock issued and outstanding, with a par value of $0.01 per share.

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Series A Preferred Stock has the following rights and preferences:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Dividends: Holders are entitled to cumulative dividends at a rate of 8.0% per annum of the Series A Preferred stock original issue price, when and if declared by the Board of Directors. No dividends were declared or paid during the years ended December 31, 2024 or 2023 and the six months ended June 30, 2025 and 2024 (unaudited).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Liquidation Preference: In the event of any liquidation, dissolution, or winding up of the Company or a deemed liquidation event, holders of the Series A Preferred Stock, then outstanding, are entitled to receive first the amount of the aggregate accruing dividend not yet paid and second an amount per share equal to the greater of the Series A original issue price ($5.00) or such amount per share as would have been payable had all shares of Series A Preferred Stock been converted into common stock immediately prior to such liquidation, dissolution, winding up or deemed liquidation event. The amount of the liquidation preference, including the preferred return was approximately $5.6 million and $5.8 million as of December 31, 2024 and June 30, 2025 (unaudited), respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Optional Conversion: The Series A Preferred Stock initially converts at any time at the option of the holder into shares of common stock on a one-for-one basis, subject to adjustments for stock dividends, splits combinations and similar events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Mandatory Conversion: Each share of Series A Preferred Stock will automatically convert into common stock at the then applicable conversion rate (i) upon the closing of an underwritten public offering of the Company's common stock having a public offering price of at least $10 per share and resulting in gross proceeds to the Company of at least $20 million, and (ii) upon the approval of the preferred supermajority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Voting Rights: The Series A Preferred Stock votes together with the common stock on an as-converted basis and not as a separate class except as required by law. Certain matters as specifically provided in the Certificate of Designation, cannot be affected without the affirmative vote or written consent of the Preferred Supermajority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Preemptive Rights: Subject to certain exceptions, in the event the Company elects to issue shares of its capital stock or securities convertible into shares of its capital stock, each holder of Series A Preferred Stock shall have the right to purchase on such terms a pro rata portion of the new securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Anti-dilution Adjustments: Subject to certain exceptions, if at any time the Company issues additional shares of common stock without consideration or for a consideration per share less than the conversion price in effect immediately prior to such issue, then the conversion price shall be reduced with such issue, to a price determined in accordance with a formula provided in the Certificate of Designation.

The Company did not convert or issue any Series A Preferred Stock during 2024 and 2023 and during the six months ended June 30, 2025 and 2024 (unaudited).

#### Common Stock Warrants
As of December 31, 2024 and 2023, and June 30, 2025 (unaudited) the Company had 542,080 outstanding common stock warrants to purchase an aggregate of 542,080 shares of common stock. These warrants were issued in connection with the Series A Preferred Stock offerings in 2022 and 2021.

All outstanding warrants are classified as equity instruments in accordance with ASC 815-40, *Derivatives and Hedging — Contracts in Entity's Own Equity*, as they (i) are indexed to the Company's common stock, (ii) do not require cash settlement by the Company under any circumstances, and (iii) meet all criteria for equity classification. The warrants do not contain any anti-dilution or price-reset provisions that would preclude equity treatment. As such, the warrants are not subject to remeasurement and are not recorded as liabilities.

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A summary of the Company's outstanding common stock warrants as of December 31, 2024 and 2023 and June 30, 2025 (unaudited) are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Year Issued**  | **Number of <br> Warrants**  | **Exercise <br> Price**  | **Expiration <br> Year**  | **Life in <br> Years**  |
| 2021  | 32320 | $5.00 | 2031 | 10 |
| 2022  | 472000 | $10.00 | 2029 | 7 |
| 2022  | 37760 | $5.00 | 2032 | 10 |
|  | 542480 |  |  |  |

---

The fair value of the warrants was determined on the respective issuance dates using the Black-Scholes-Merton option pricing-model.

The warrants are exercisable for common stock and do not confer any voting rights, dividends, or other rights until exercised. No warrants were exercised, canceled, or expired during the years ended December 31, 2024, and 2023 and the six months ended June 30, 2025 and 2024 (unaudited).

#### Note 10. Stock-Based Compensation
The 2018 Encore Medical, Inc Equity Stock Incentive Plan (the "2018 Plan") authorizes the issuance of nonqualified stock options and restricted stock units. Payment for the shares may be made in cash, shares of the Company's common stock or a combination thereof. Under the terms of the 2018 Plan, incentive stock options and non-qualified stock options are granted at a minimum of 100% of fair market value on the date of grant and may be exercised after vesting at various times depending upon the terms of the option. All existing options expire 10 years from the date of grant or one year from the date of death. The terms of the grants allow for an acceleration of vesting upon a change in control of the Company.

Under the 2018 Plan, the Company is authorized to issue up to 571,742 shares through stock options and awards such as restricted stock or restricted stock units as of December 31, 2024.

#### Stock Options
In 2024, the Company granted 100,000 non-qualified stock options in total to two of its employee board members and 285,000 non-qualified stock options to employees. All of the options vest immediately except for 25,000 options granted to a non-board member employee. The Company did not grant any options in 2023 and the six months ended June 30, 2025 (unaudited).

The weighted average assumptions made in estimating the fair value of the options on the grant date based upon the BSM option-pricing model for the year ended December 31, 2024 are as follows:

---

| | |
|:---|:---|
| | **2024**  |
| Dividend Yield  | 0.00%  |
| Expected Volatility  | 34.30%  |
| Risk Free Interest Rate  | 3.94%  |
| Expected Life  | 5 Years  |

---

The Company calculates expected volatility for stock options using comparable volatility from other medical device companies as the Company does not have its own volatility due to the lack of significant sales of its common stock.

There were no options exercised during the years ended December 31, 2024 and 2023. The Company had 163,000, 2,000 and 25,000 options forfeited during the years ended December 31, 2024 and 2023 and the six months ended June 30, 2025 (unaudited), respectively.

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The following table summarizes the activity for outstanding incentive stock options under the 2018 Plan:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Options Outstanding**  | **Options Outstanding**  | **Options Outstanding**  | **Options Outstanding**  |
| | **Number of <br> Shares**  | **Weighted- <br> Average <br> Exercise <br> Price**  | **Weighted- <br> Average <br> Remaining <br> Contractual <br> Term <br> (in years)**  | **Aggregate <br> Intrinsic Value**  |
| Balance at December 31, 2022  | 418000 | $1.41 | 3.90 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Granted  | 0 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exercised  | 0 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forfeited  | (2000) | 5.00 | 0.0 |  |
| Balance at December 31, 2023  | 416000 | 1.39 | 3.92 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Granted  | 385000 | 5.00 | 9.59 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exercised  | 0 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forfeited  | (163000) |  | 0.0 |  |
| Balance at December 31, 2024  | 638000 | $3.59 | 7.35 | $900000 |
| &nbsp;&nbsp;&nbsp; Vested and exercisable as of December 31, 2024  | 626194 | $3.56 |  | $900000 |

---

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Options Outstanding**  | **Options Outstanding**  | **Options Outstanding**  | **Options Outstanding**  |
| | **Number of <br> Shares**  | **Weighted- <br> Average <br> Exercise <br> Price**  | **Weighted- <br> Average <br> Remaining <br> Contractual <br> Term <br> (in years)**  | **Aggregate <br> Intrinsic Value**  |
| Balance at December 31, 2024  | 638000 | $3.59 | 7.35 | $900000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Granted (unaudited)  | 0 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exercised (unaudited)  | (150000) | 1.00 | 0.00 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forfeited (unaudited)  | (25000) | 5.00 | 0.00 |  |
| Balance at June 30, 2025 (unaudited)  | 463000 | 4.35 | 8.09 | $300000 |
| &nbsp;&nbsp;&nbsp; Vested and exercisable as of June 30, 2025 (unaudited)  | 455240 | $4.34 |  | $300000 |

---

As of December 31, 2024 and June 30, 2025 (unaudited), the unrecognized compensation expense related to outstanding stock options was $23,198 and $15,010, respectively, which the Company expects to recognize over the remaining 17 and 11 month vesting period, respectively. The Company recognized compensation expense in connection with the vesting of options of $696,101 and $7,936 during the years ended December 31, 2024 and 2023 and $8,188 and $67,527 during the six months ended June 30, 2025 and 2024 (unaudited).

#### Note 11. Related Party Transactions
The Company was a subsidiary of Cardia Inc., until it was spun-off to Cardia shareholders on October 1, 2020. The two companies have common ownership consisting of non-majority interests in common and preferred stock of both companies. In addition, the companies have the same CEO and two board members. The Company has engaged in various transactions with Cardia, including Cardia selling medical devices on the behalf of the Company while the transfer of appropriate regulatory requirements was completed. During the years ended December 31, 2024 and 2023 and the six months ended June 30, 2025 and 2024 (unaudited) Cardia sold and remitted sales proceeds of $888,342, $1,388,265, $15,124 and $881,989, respectively to the Company.

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Cardia also performed contract manufacturing services on behalf of the Company through the first 3 months of 2023 During the years ended December 31, 2024 and 2023 and the six months ended June 30, 2025 and 2024, the Company purchased the following services from Cardia.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31,**  | **December 31,**  | **June 30,**  | **June 30,**  |
| | **2024**  | **2023**  | **2025**  | **2024**  |
| Contract manufacturing services  | $— | $388289 | $— | $— |
| Contract management services  |  | 130310 |  |  |
| Rent charged by Cardia  |  | 30000 |  |  |

---

Additionally, the Company has an agreement to manufacture medical devices for Cardia. During the years ended December 31, 2024 and 2023 and the six months ended June 30, 2024 and 2025 (unaudited), the Company billed Cardia $35,088, $27,650, 19,006 and $35,088, respectively.

At December 31, 2024 and 2023 and June 30, 2025 (unaudited), Encore had a receivable from Cardia of $0, $381,727 and $0 (unaudited), respectively. At June 30, 2025, Encore had a payable due to Cardia of $15,305 (unaudited) During the year ended December 31, 2024, the Company recorded $475,538 of bad debt expense related to the Cardia receivable. It was determined that due to Cardia's limited revenue and future expectations of revenue the receivable would not be realized.

All related party transactions are reviewed and approved in accordance with the Company's related party agreements

#### Note 12. Income Taxes
The provision (benefit) for income tax expense consisted of the following for the years ended:

---

| | | |
|:---|:---|:---|
| | **December 31,**  | **December 31,**  |
| | **2024**  | **2023**  |
| Current income taxes, Federal  | $0.00 | $0.00 |
| Current income taxes, State | 0.00 | 0.00 |
| Deferred income taxes, Federal  | 0.00 | 0.00 |
| Deferred income taxes, State  | 0.00 | 0.00 |
| Unrecognized tax benefit, Federal  | 0.00 | 0.00 |
| Unrecognized tax benefit, State  | 0.00 | 0.00 |
| Total provision (benefit) for income taxes  | $0.00  | $0.00 |

---

Company did not record any income tax provision for the years ended December 31, 2024 and 2023, respectively, due to the Company's net losses. The Company files income tax returns in the United States ("Federal") and Minnesota ("State") jurisdictions. The Company is subject to Federal and State income tax examinations by tax authorities for all years since its inception. At December 31, 2024, the Company had Federal net operating loss carry forwards available to offset future taxable income of approximately $5.2 million. These carry forwards do not expire for Federal purposes. At December 31, 2024 and 2023 the Company has recorded a valuation allowance for 100% of its cumulative deferred tax assets.

The Company has no accrued interest or penalties related to uncertain tax positions as of December 31, 2024 or December 31, 2023 and uncertain tax positions are not significant.

Deferred taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and operating losses and tax credit carryforwards. The significant components of net deferred income tax assets are:

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---

| | | |
|:---|:---|:---|
| | **December 31,**  | **December 31,**  |
| | **2024**  | **2023**  |
| Deferred Tax Assets: |  |  |
| &nbsp;&nbsp;&nbsp; Vacation accrual  | $**15315**  | 13515 |
| &nbsp;&nbsp;&nbsp; Net operating losses  | 1082457 | 843180 |
| &nbsp;&nbsp;&nbsp; Other  | 618 | 626 |
| &nbsp;&nbsp;&nbsp; Valuation allowance  | (1098390) | (857321) |
| Total Deferred Tax Assets  |  |  |
| Total Deferred Tax Liabilities  | 0 | 0 |
| Net Deferred Tax Asset  | $**0**  | 0 |

---

A reconciliation of the federal statutory income tax rate and the effective income tax rate as a percentage of income before income tax provision is as follows for the year ended:

---

| | | |
|:---|:---|:---|
| | **December 31,**  | **December 31,**  |
| | **2024**  | **2023**  |
| Federal statutory income tax rate  | 21.0% | 21.0% |
| State tax, net of federal benefit  | 0.0% | 0.0% |
| Change in valuation allowance on net operating loss carryforward  | (21.0)% | (21.0)% |
| Effective income tax rate  | 0.00% | 0.00% |

---

#### Six Months Ended June 30, 2025 and 2024 (unaudited)
The Company had an effective tax rate of 0% for both the six months ended June 30, 2025 and 2024 (unaudited). The Company continues to incur operating losses. During the six months ended June 30, 2025 and 2024 (unaudited), the Company has evaluated all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and has determined that it is more likely than not that its net deferred tax assets will not be realized. Due to uncertainties surrounding the realization of the deferred tax assets, the Company continues to maintain a full valuation allowance against its net deferred tax assets.

#### Note 13. Contingencies
The Company sometimes becomes subject to claims against it in the ordinary course of business. There are currently no pending or threatened claims against the Company that it believes will have a material adverse effect on its results of operations or liquidity.

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### Shares of common stock
![[MISSING IMAGE: lg_emi-4c.jpg]](lg_emi-4c.jpg)

![[MISSING IMAGE: lg_encoremedical-4c.jpg]](lg_encoremedical-4c.jpg)

### Common Stock

#### PROSPECTUS

### OAK RIDGE FINANCIAL DAWSON JAMES SECURITIES, INC.

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#### PART II

#### INFORMATION NOT REQUIRED IN PROSPECTUS

#### Item 13. Other Expenses of Issuance and Distribution
The following table presents the costs and expenses, other than underwriting discounts and commissions, payable in connection with this offering. All amounts are estimates except the SEC registration fee, the FINRA filing fee and [•] listing fee. Except as otherwise noted, all the expenses below will be paid by us.

---

| | |
|:---|:---|
| SEC registration fee  | $2,852.28\* |
| FINRA filing fee  | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;listing fee  | \* |
| Printing expenses  | \* |
| Legal fees and expenses  | \* |
| Accounting fees and expenses  | \* |
| Transfer agent and registrar fees  | \* |
| Miscellaneous fees and expenses  | \* |
| Total  | $\* |

---

\*

To be completed by amendment.

#### Item 14. Indemnification of Directors and Officers
Encore Medical was incorporated under the laws of Minnesota. The Minnesota Business Corporation Act provides that our officers and directors have the right to indemnification from us for liability arising out of certain actions. Such indemnification may be available for liabilities arising in connection with securities offerings.

We have adopted in our Articles a provision which limits personal liability for breach of the fiduciary duty of our directors, to the extent provided by Section 302A.251 of the Minnesota Business Corporation Act. Such provision eliminates the personal liability of directors for damages occasioned by breach of fiduciary duty, except for liability based on the director's duty of loyalty to us, liability for acts or omissions not made in good faith, liability for acts or omissions involving intentional misconduct or a knowing violation of law, liability based on payments of improper dividends, liability based on violations of state securities laws, and liability for acts occurring prior to the date such provision was added.

Section 302A.521 of the Minnesota Business Corporation Act provides that a Minnesota business corporation shall indemnify any director, officer, employee or agent of the corporation made or threatened to be made a party to a proceeding, by reason of the former or present official capacity (as defined therein) of the person, against judgments, penalties, fines, settlements and reasonable expenses incurred by the person in connection with the proceeding if certain statutory standards are met. "Proceeding" means a threatened, pending or completed civil, criminal, administrative, arbitration or investigative proceeding, including one by or in our right. Article VIII of our bylaws provides that we shall indemnify persons to the fullest extent permissible by the Minnesota Business Corporation Act. Section 302A.521 contains detailed terms regarding such right of indemnification and reference is made thereto for a complete statement of such indemnification rights.

In addition, the proposed form of Underwriting Agreement (to be filed by amendment) is expected to provide for indemnification by the underwriters of our directors and officers, and by us of the underwriters, for certain liabilities, including liabilities arising under the Securities Act.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling us pursuant to the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

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#### Item 15. Recent Sales of Unregistered Securities
The following sets forth information regarding all unregistered securities sold by us since January 1, 2022:

In a series of closings in 2022, we issued an aggregate of 472,000 shares of our Series A Preferred Stock to accredited investors at a purchase price equal to $5.00 per share, for an aggregate purchase price of approximately $2.36 million. The Preferred Stock was sold as a Unit with each investor receiving a 10-year Warrant equivalent to the number of shares purchased.

In a series of closings in 2024, we issued an aggregate of 81,000 shares of our common stock to accredited investors at a purchase price equal to $5.00 per share, for an aggregate purchase price of approximately $405,000.

Shares issued pursuant to our 2018 Stock Incentive Plan are described under "2018 Stock Incentive Plan" on pg. 56, which description is incorporated by reference. These securities were issued pursuant to the exemption provided by Rule 701 for compensatory awards.

#### Item 16. Exhibits and Financial Statement Schedules
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) Exhibits. The following exhibits are included herein or incorporated herein by reference:

---

| | |
|:---|:---|
| **Exhibit <br> Number**  | **Description**  |
| &nbsp;&nbsp;&nbsp; 1.1\* | Form of Underwriting Agreement. |
| &nbsp;&nbsp; 3.2\* | Amended and Restated Articles of Incorporation of Registrant. |
| &nbsp;&nbsp; 3.4\* | Bylaws of Registrant. |
| &nbsp;&nbsp; 4.1 | [Form of Registrant's Common Stock Certificate.](tm2525595d2_ex4-1.htm)  |
| &nbsp;&nbsp;&nbsp; 4.2 | [Form of Representative's Warrant.](tm2525595d2_ex4-2.htm)  |
| &nbsp;&nbsp; 5.1\* | Opinion of Holland & Hart LLP. |
| &nbsp;&nbsp; 10.1\* | Contract Sales and Manufacturing Agreement, by and between Cardia, Inc. and Registrant effective November 15, 2024. |
| &nbsp;&nbsp; 10.2\* | Commercial Lease, by and between The Waters HM LLC and Registrant effective February 3, 2023. |
| &nbsp;&nbsp; 10.3\* | First Amendment to Commercial Lease, by and between The Waters HM LLC and Registrant effective March 3, 2023. |
| &nbsp;&nbsp; 10.4\* | Loan Agreement, by and between Merit Medical Systems, Inc. and Registrant dated November 6, 2023. |
| &nbsp;&nbsp; 10.4(a)†\* | Encore Medical, Inc. 2018 Stock Incentive Plan. |
| &nbsp;&nbsp; 10.4(b)†\* | Form of Incentive Stock Option Agreement under the 2018 Stock Incentive Plan. |
| &nbsp;&nbsp; 10.4(c)†\* | Form of Nonqualified Stock Option Award Agreement under the 2018 Stock Incentive Plan. |
| &nbsp;&nbsp; 10.5 | [Security Agreement, by and between Merit Medical Systems, Inc. and Registrant dated November 6, 2023.](tm2525595d2_ex10-5.htm)  |
| &nbsp;&nbsp; 21.1\* | Subsidiaries of the Registrant. |
| &nbsp;&nbsp; 23.1 | [Consent of Boulay PLLP, Independent Registered Public Accounting Firm.](tm2525595d2_ex23-1.htm)  |
| &nbsp;&nbsp; 23.2\* | Consent of Holland & Hart LLP (contained in Exhibit 5.1). |
| 24.1 | [Power of Attorney (included on signature page).](#tPOA)  |
| 107 | [Filing Fee Table.](tm2525595d1_ex-filingfees.htm)  |

---

\*

To be filed by amendment.

†

Indicates a management contract or compensatory plan or arrangement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) Financial Statement Schedules. All schedules have been omitted because the information required to be presented in them is not applicable or is shown in the consolidated financial statements or related notes.

#### Item 17. Undertakings
The undersigned registrant hereby undertakes to provide to the underwriter at the closing specified in the underwriting agreement certificates in such denominations and registered in such names as required by the underwriter to permit prompt delivery to each purchaser.

Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1) For purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2) For the purpose of determining any liability under the Securities Act of 1933, as amended, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

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#### SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in Eagan, Minnesota, on this 12 day of September, 2025.

#### ENCORE MEDICAL, INC.
/s/ Joseph A. Marino

Joseph A. Marino

*President and Chief Executive Officer* 

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#### POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Joseph A. Marino and Peter M. Buonomo, and each of them, as his or her true and lawful attorney-in-fact and agent with full power of substitution, for him or her in any and all capacities, to sign any and all amendments to this registration statement (including post-effective amendments) and any registration statement related thereto filed pursuant to Rule 462(b) increasing the number of securities for which registration is sought, and to file the same, with all exhibits thereto and other documents in connection therewith, with the SEC, granting unto said attorney-in-fact and agent full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully for all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorney-in-fact and agent, or his or her substitute, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature**  | **Title**  | **Date**  |
| /s/ Joseph A. Marino <br>Joseph A. Marino  | Chairman, President and Chief Executive Officer <br> *(Principal Executive Officer)* | September 12, 2025  |
| /s/ Scott S. Robinson <br>Scott S. Robinson  | Chief Financial Officer and Chief Accounting Officer <br> *(Principal Financial and Accounting Officer)* | September 12, 2025  |
| /s/ Christopher J. Turnbull <br>Christopher J. Turnbull  | Director | September 12, 2025  |
| /s/ Peter M. Buonomo <br>Peter M. Buonomo  | Director | September 12, 2025  |
| /s/ Todd C. Johnson <br>Todd C. Johnson  | Director | September 12, 2025  |
| /s/ Timothy G. Laske <br>Timothy G. Laske  | Director | September 12, 2025  |

---

------

## Exhibit 4.1

Exhibit 4.1

&nbsp;&nbsp;![GRAPHIC](tm2525595d2_ex4-1img001.jpg)<br>

&nbsp;&nbsp;![GRAPHIC](tm2525595d2_ex4-1img002.jpg)<br>

## Exhibit 4.2

**Exhibit 4.2**

**FORM OF REPRESENTATIVE'S WARRANT**

**THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "Securities ACT") OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH SECURITIES UNDER THE SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION THEREFROM.**

**This Warrant is subject to restrictions on transfer and may not be sold, transferred, assigned, pledged, or hypothecated, or be the subject of any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of this Warrant or the Shares acquirable upon exercise hereof, other than in compliance with Rule 5110(E) of the Financial Industry Regulatory Authority, Inc. and Section 8 hereof.**

**COMMON STOCK PURCHASE WARRANT**

**ENCORE MEDICAL, Inc.**

Date: [_________], 2025

THIS COMMON STOCK PURCHASE WARRANT (the "<u>Warrant</u>") certifies that, for value received, The Oak Ridge Financial Services Group, Inc., or its registered assigns, (herein referred to as the "<u>Purchaser</u>" or "<u>holde</u>*r*"), is entitled to subscribe for and purchase from Encore Medical, Inc., a Minnesota corporation (herein called the "<u>Company</u>"), ____________ (____________) shares (the "<u>Shares</u>") of common stock, par value $0.001 per share (the "<u>Common Stock</u>"), of the Company (subject to adjustment as noted below) at the exercise price of $[____] per Share (the "<u>Warrant Purchase Price</u>") (subject to adjustment as noted below). This Warrant may only be exercised during the Exercise Period specified herein. This Warrant has been issued pursuant to the Underwriting Agreement, dated [______], 2025, between the Company and The Oak Ridge Financial Services Group, Inc. as representative of the several underwriters listed in Schedule I thereto., in connection with a public offering (the "<u>Offering</u>") of [_______] shares of Common Stock.

This Warrant is subject to the following provisions, terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The exercise period (the "<u>Exercise Period</u>") for this Warrant shall begin on the one year anniversary of the effective date of the Offering and shall then continue for four years from the start of the exercise period. As used herein, the "effective date of the Offering" means [*insert pricing date*], 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The rights represented by this Warrant may be exercised, in whole or in part, by the holder hereof as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The holder hereof shall deliver to the Company written notice of exercise of this Warrant and in connection therewith shall surrender this Warrant (properly endorsed if required) at the principal office of the Company and pay the Warrant Purchase Price for such Shares as provided for herein. This Warrant shall be deemed to have been exercised on the first date on which all of the foregoing have been delivered to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The holder hereof shall pay the Warrant Purchase Price (i) in immediately available funds or (ii) by "cashless exercise", in which event the Company shall issue to the holder hereof a number of Shares determined as follows:

X = Y \* [(A-B)/A]

where:

X = the number of Shares to be issued to the holder.

Y = the total number of Shares with respect to which this Warrant is being exercised.

A = the fair market value of one Share at the time the "cashless exercise" election is made.

B = the Warrant Purchase Price then in effect for the Shares at the time the "cashless exercise" election is made.

For purposes of this Warrant, the fair market value of one Share as of a particular date shall be determined as follows: (i) if the Common Stock is listed or quoted for trading on a U.S. national securities exchange, the value shall be deemed to be the average of the closing prices of the Common Stock on such exchange over the 10-Trading Day period ending on the Trading Day prior to the net exercise election; (ii) if clause (i) is not applicable, the value shall be deemed to be the average of the closing bid or sale prices (whichever is applicable) of the Common Stock on the principal securities exchange or securities market on which the Common Stock is then listed or quoted for trading over the 10-Trading Day period ending on the Trading Day prior to the net exercise election; and (iii) if none of the foregoing is applicable, the value shall be the fair market value of one share of Common Stock mutually agreed upon by the holder and the Company; provided, that if the Company and the holder are unable to agree upon the fair market value of a Share, then the Board of Directors of the Company shall use its good faith judgment to determine the fair market value, and such determination shall be binding upon all parties absent demonstrable error.

For purposes of this Warrant, "<u>Trading Day</u>" means any day on which the Common Stock is traded on a U.S. stock exchange or, if inapplicable, the principal securities exchange or securities market on which the Common Stock is then traded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon exercise of this Warrant, the Company shall promptly (but in no event later than two Trading Days after the date this Warrant is exercised in accordance with its terms) issue or cause to be issued and cause to be delivered to or upon the written order of the holder and in such name or names as the holder may designate (provided that, if the holder directs the Company to deliver a certificate for the Shares in a name other than that of the holder or an affiliate (as defined in Rule 405 under the Securities Act of 1933, as amended (the "<u>Securities Act</u>")) of the holder, it shall deliver to the Company on the date of exercise an opinion of counsel reasonably satisfactory to the Company to the effect that the issuance of such Shares in such other name may be made pursuant to an available exemption from the registration requirements of the Securities Act and all applicable state securities or blue sky laws), a certificate for the Shares issuable upon such exercise or credit for such Shares through the facilities of The Depository Trust Company ("<u>DTC</u>") to the account designated by the holder (with any restrictive legends required by applicable securities laws). The form of delivery of the Shares acquired upon exercise will be at the election of the holder, subject to the other terms of this Warrant. The holder, or any person permissibly so designated by the holder to receive the Shares acquired upon exercise hereof, shall be deemed to have become the holder of record of such Shares as of the date notice of exercise of payment of the applicable Warrant Purchase Price is made in accordance with the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If by the fifth Trading Day after the date this Warrant is exercised in accordance with this Section 2 the Company fails to deliver the required number of Shares in the manner required pursuant to Section 2(c), then, in addition to any other remedy the holder may have at law or in equity (including a decree of specific performance or injunctive relief), the holder hereof will have the right to rescind such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event that this Warrant has not been exercised prior to the end of the Exercise Period and the fair market value of one Share as determined in accordance with the provisions hereof exceeds the Warrant Purchase Price on the last day of the Exercise Period, on such date this Warrant will be automatically exercised pursuant to the cashless exercise provisions set forth in Section 2(b); provided, that the holder hereof, upon the request of the Company, must surrender to the Company of this Warrant within 30 days of a request for delivery of thereof by the Company. If the holder hereof does not surrender this Warrant within such time period, this Warrant will be deemed to not have been exercised under this Section 2(e) and will terminate and no longer be exercisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Company represents and warrants that this Warrant has been duly authorized by all necessary corporate action, has been duly executed and delivered and is a legal and binding obligation of the Company, enforceable against the Company in accordance with the terms of this Warrant, except as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting the rights of creditors generally and subject to general principles of equity. The Company covenants and agrees that all Shares which may be issued upon the exercise of the rights represented by this Warrant according to the terms hereof have been duly authorized and will, upon issuance and payment therefor, be validly issued and fully paid. The Company further covenants and agrees that during the period within which the rights represented by this Warrant may be exercised, the Company will at all times have authorized, and reserved for the purpose of issue upon exercise of the subscription rights evidenced by this Warrant, a sufficient number of its shares of Common Stock to provide for the exercise of the rights represented by this Warrant, free from preemptive rights or other actual contingent purchase rights other than those held by a holder of this Warrant (as a result of holding this Warrant). The Company will take all such reasonable action as may be necessary to assure that the Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the principal securities exchange or securities market upon which the Common Stock may be listed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Company will pay any documentary stamp taxes attributable to the issuance of Shares upon the exercise of this Warrant; *provided, however*, that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the registration of any certificates for Warrants, or Shares issued upon exercise of this Warrant, in a name other than that of the Purchaser. The Purchaser shall be responsible for all other tax liability that may arise as a result of holding or transferring this Warrant or receiving Shares upon exercise hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The above provisions are, however, subject to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Warrant Purchase Price shall, from and after the date of issuance of this Warrant, be subject to adjustment from time to time as hereinafter provided. Upon each adjustment of the Warrant Purchase Price, the holder of this Warrant shall thereafter be entitled to purchase, at the Warrant Purchase Price resulting from such adjustment, the number of Shares obtained by multiplying the Warrant Purchase Price in effect immediately prior to such adjustment by the number of Shares purchasable pursuant hereto immediately prior to such adjustment and dividing the product thereof by the Warrant Purchase Price resulting from such adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In case the Company shall at any time subdivide its outstanding shares of Common Stock into a greater number of shares, the Warrant Purchase Price in effect immediately prior to such subdivision shall be proportionately reduced, and conversely, in case the outstanding shares of Common Stock shall be combined into a smaller number of shares, the Warrant Purchase Price in effect immediately prior to such combination shall be proportionately increased.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If any capital reorganization or reclassification of the capital stock of the Company, shall be effected in such a way that holders of Common Stock shall be entitled to receive stock or securities with respect to or in exchange for Common Stock, then, as a condition of such reorganization, reclassification or consolidation, lawful and adequate provision shall be made whereby the holder hereof shall thereafter have the right to purchase and receive, upon the basis and upon the terms and conditions specified in this Warrant and in lieu of the Shares immediately theretofore purchasable and receivable upon the exercise of the rights represented hereby, such shares of stock or securities as may be issued or payable with respect to or in exchange for a number of Shares equal to the number of Shares immediately theretofore purchasable and receivable upon the exercise of the rights represented hereby had such reorganization, reclassification or consolidation not taken place, and in any such case appropriate provision shall be made with respect to the rights and interests of the holder of this Warrant to the end that the provisions hereof (including without limitation provisions for adjustments of the warrant purchase price and of the number of shares purchasable upon the exercise of this Warrant) shall thereafter be applicable, as nearly as may be, in relation to any shares of stock or securities thereafter deliverable upon the exercise hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon any adjustment of the Warrant Purchase Price or any adjustment of any material terms hereof, then and in each such case an officer of the Company shall, as soon as practicable after the occurrence of any event that requires an adjustment or readjustment, give signed written notice thereof, by first–class mail, postage prepaid, addressed to the registered holder of this Warrant at the address of such holder as shown on the books of the Company, which notice shall state the Warrant Purchase Price resulting from such adjustment, any material change in the terms of the Warrant, and the increase or decrease, if any, in the number of Shares purchasable at such price upon the exercise of this Warrant, setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In case any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. there shall be any capital reorganization of the Company, reclassification of the capital stock of the Company, consolidation or merger of the Company with or into another corporation, or sale, lease or transfer of all or substantially all of the assets of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. there shall be a voluntary or involuntary dissolution, liquidation or winding up of the Company;

then, in any one or more of said cases, the Company shall give written notice, by first-class mail, postage prepaid, addressed to the registered holder of this Warrant at the address of such holder as shown on the books of the Company, of the date on which (A) the books of the Company shall close or a record shall be taken for such distribution or subscription rights, or (B) such reorganization, reclassification, consolidation, merger, lease, transfer, dissolution, liquidation or winding up, or conversion or redemption shall take place, as the case may be. Such notice shall also specify the date as of which the holders of capital stock of record shall participate in such distribution or subscription rights, or shall be entitled to exchange their capital stock for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, lease, transfer, dissolution, liquidation or winding up, or conversion or redemption, as the case may be. Such written notice shall be given at least 20 days prior to the action in question and not less than 20 days prior to the applicable record or effective date or the date on which the Company's transfer books are closed in respect thereto, unless such notice period is waived in writing by the registered holder of this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If any event occurs as to which in the opinion of the Board of Directors of the Company the other provisions of this Section 5 are not strictly applicable or if strictly applicable would not fairly protect the purchase rights of the holder of this Warrant or of the Common Stock in accordance with the essential intent and principles of such provisions, then the Board of Directors shall make an adjustment in the application of such provisions, in accordance with such essential intent and principles, so as to protect such purchase rights as aforesaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. This Warrant shall not entitle the holder hereof to any voting rights or other rights as a shareholder of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. If at any time during the term of the Warrant there is not an effective registration statement under the Securities Act covering the resale of the Shares and the Company shall determine to prepare and file with the Securities and Exchange Commission a registration statement relating to an offering for the account of others under the Securities Act of any of its equity securities, other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection with the stock option or other employee benefit plans, then the Company shall send to the holder hereof a written notice of such determination and, if within 15 days after the date of such notice, the holder hereof shall so request in writing, the Company shall include in such registration statement all or any part of the Shares the holder hereof requests to be registered, subject to customary underwriter cutbacks applicable to all holders of registration rights and any limitations imposed by applicable law. The holder may have shares registered pursuant to this Section 7 on not more than two occasions. The Company shall bear any costs of a registration described in this Section 7, provided that, (i) all underwriting discounts and commissions attributable to any Shares so registered will be borne by the holder; and (ii) any fees and expenses of counsel for the selling shareholders will be payable by such shareholders pro rata.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. This Warrant is exchangeable, upon the surrender hereof by the holder hereof at the principal office of the Company, for new Warrants of like tenor representing in the aggregate the right to subscribe for and purchase the number of shares which may be subscribed for and purchased hereunder, each of such new Warrants to represent the right to subscribe for and purchase such number of shares as shall be designated by said holder hereof at the time of such surrender. Subject to compliance with applicable securities laws and the other terms of this Warrant, this Warrant may be assigned or transferred by the holder and this Warrant shall be binding on and inure to the benefit of the parties hereto and their respective transferees, successors and assigns. Notwithstanding the foregoing, pursuant to Rule 5110(e) of the Financial Industry Regulatory Authority, Inc. ("<u>FINRA</u>"), this Warrant shall not be sold during the Offering, or sold, transferred, assigned, pledged, or hypothecated, or be the subject of any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of this Warrant or the Shares acquirable upon exercise hereof, by any person for a period of 180 days immediately following the effective date of the Offering, except as provided in paragraph (e)(2) of Rule 5110(e) of the FINRA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Each certificate for the securities purchased under this Warrant shall bear a legend as follows (or substantially similar legend) unless such securities have been registered under the Securities Act):

"The securities represented by this certificate have not been registered under the Securities Act of 1933, as amended (the "Act"), or applicable state law. Neither the securities nor any interest therein may be offered for sale, sold or otherwise transferred except pursuant to an effective registration statement under the Act, or pursuant to an exemption from registration under the Act and applicable state law which, in the opinion of counsel to the Company, is available."

The securities evidenced by this Warrant shall not be transferred unless and until: (i) the Company has received the opinion of counsel for the holder that the securities may be transferred pursuant to an exemption from registration under the Act and applicable state securities laws, the availability of which is established to the reasonable satisfaction of the counsel of the Company, or (ii) a registration statement relating to the offer and sale of such securities has been filed by the Company and declared effective by the U.S. Securities and Exchange Commission and compliance with applicable state securities law has been established.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. The Company will not be required upon the exercise of this Warrant to issue fractions of Shares, but may, at its option, either (a) purchase such fraction for an amount in cash equal to the current value of such fractional Share computed on the basis of the closing market price of the Common Stock as quoted on the principal exchange or trading facility on which the Common Stock is traded on the Trading Day immediately preceding the day upon which this Warrant was surrendered for exercise in accordance with Section 2 hereof, or (b) round the fractional Share up to the nearest full Share and issue such full Share. By accepting this Warrant, the holder hereof expressly waives any right to receive any fractional Share upon exercise of a Warrant, except as expressly provided in this Section 10.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. If this Warrant is exercised for less than all of the then-current number of Shares purchasable hereunder, then the Company shall, concurrently with the issue of the Shares purchased by the holder hereof upon such exercise in accordance with Section 2, issue a new warrant exercisable for the remaining number of Shares purchasable under this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant and security reasonably satisfactory to it (which may include a customary and reasonable indemnity, which shall not include a surety bond, if requested), the Company shall execute and deliver a new warrant of like tenor as the Warrant so lost, stolen, destroyed or mutilated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. This Warrant shall be governed by and construed and enforced in accordance with the laws of the State of New York, without giving effect to conflict of laws principles thereof. The Company and the holder agree that the prevailing party(ies) in any action or proceeding arising out of or relating to this Warrant shall be entitled to recover from the other party(ies) all of its reasonable attorneys' fees and expenses relating to such action or proceeding and/or incurred in connection with the preparation therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. All modifications or amendments of this Warrant shall require the written consent of and be signed by the party against whom enforcement of the modification or amendment is sought.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. This Warrant (together with the other agreements and documents being delivered pursuant to or in connection with this Warrant) constitutes the entire agreement of the parties hereto with respect to the subject matter hereof, and supersedes all prior agreements and understandings of the parties, oral and written, with respect to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. The holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. This Warrant shall inure solely to the benefit of and shall be binding upon, the holder and the Company and their permitted assignees, respective successors, legal representative and assigns, and no other person shall have or be construed to have any legal or equitable right, remedy or claim under or in respect of or by virtue of this Warrant or any provisions herein contained.

[Signature Page Follows]

IN WITNESS WHEREOF, Encore Medical, Inc. has caused this Warrant to be signed by its duly authorized officer and this Warrant to be dated as of the date set forth above.

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| |
|:---|
| **ENCORE MEDICAL, INC.** |
| By: |
| Name: |
| Title: |

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**NOTICE OF EXERCISE**

**To be Executed by the Holder of this Warrant if such Holder<br> Desires to Exercise this Warrant in Whole or in Part**

To: Encore Medical, Inc.

The undersigned ___________________________________, hereby irrevocably elects to exercise the right of purchase represented by this Warrant for, and to purchase thereunder, ___________ shares of Common Stock (the "<u>Shares</u>") provided for therein.

**Tax identification number of Subscriber:**

Payment of the Warrant Purchase Price for the Shares shall take the form of [Check the applicable box below]:

¨ Immediately available U.S. funds; or

¨ the cancellation of such number of Shares as is necessary to satisfy the Warrant Purchase Price with respect to the "cashless exercise" of the number of Shares set forth above in accordance with the formula set forth in Section 2(b)(ii) of the Warrant.

The undersigned requests that such Shares be registered in the name of the undersigned or in such other name specified below:

Name:

The Shares shall be delivered as follows:

and, if such number of Shares does not constitute all shares purchasable under the Warrant, that a new Warrant for the balance remaining of such shares be registered in the name of, and delivered to, the undersigned at the address stated above.

Unless the undersigned has selected the "cashless exercise" option provided for in Section 2(b)(ii) of the Warrant, the undersigned hereby represents and warrants that the undersigned is acquiring the Shares for its own account for investment purposes only, and not for resale or with a view to distribution of such shares or any part thereof.

Dated:

Name of Holder:  

Signature:  

Name of Authorized Signatory:  

Title of Authorized Signatory:

## Exhibit 10.5

**Exhibit 10.5**

**SECURITY AGREEMENT**

**between**

**MERIT MEDICAL SYSTEMS, INC.**

**and**

**ENCORE MEDICAL, INC.**

**November 6, 2023**

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| **Article I DEFINITIONS AND INTERPRETATION** | **Article I DEFINITIONS AND INTERPRETATION** | **1** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 1.01 | Definitions | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 1.02 | Interpretation | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 1.03 | Resolution of Drafting Ambiguities | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 1.04 | Schedules | 8 |
| **Article II GRANT OF SECURITY INTEREST** | **Article II GRANT OF SECURITY INTEREST** | **8** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.01 | Grant of Security Interest | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.02 | Filings | 9 |
| **Article III PERFECTION AND FURTHER ASSURANCES** | **Article III PERFECTION AND FURTHER ASSURANCES** | **10** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.01 | Perfection of Certificated Securities Collateral | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.02 | Perfection of Uncertificated Securities Collateral | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.03 | Maintenance of Perfected Security Interest | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.04 | Other Actions for Perfection | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.05 | Joinder of Additional Grantors | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.06 | Further Assurances | 14 |
| **Article IV REPRESENTATIONS, WARRANTIES AND COVENANTS** | **Article IV REPRESENTATIONS, WARRANTIES AND COVENANTS** | **15** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.01 | Loan Agreement Representations | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.02 | Ownership of Property and No Other Liens | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.03 | Perfected First Priority Security Interest | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.04 | No Transfer of Pledged Collateral | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.05 | Claims Against Pledged Collateral | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.06 | Other Financing Statements | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.07 | Changes in Name, Jurisdiction of Organization, Etc. | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.08 | Location of Inventory and Equipment | 18 |

---

i

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.09 | Pledged Securities and Pledged Debt | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.10 | Approvals | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.11 | Pledged Collateral Information | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.12 | Insurance | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.13 | Compliance With Laws | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.14 | Intellectual Property | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.15 | Inspection of Pledged Collateral | 21 |
| **Article V SECURITIES COLLATERAL** | **Article V SECURITIES COLLATERAL** | **21** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.01 | Existing Voting Rights and Distributions | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.02 | Certain Agreements of Grantors | 22 |
| **Article VI INTELLECTUAL PROPERTY COLLATERAL** | **Article VI INTELLECTUAL PROPERTY COLLATERAL** | **23** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 6.01 | Intellectual Property License | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 6.02 | Dealing With Intellectual Property | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 6.03 | Additional Intellectual Property | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 6.04 | Intellectual Property Litigation | 25 |
| **Article VII** **RECEIVABLES** | **Article VII** **RECEIVABLES** | **25** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.01 | Dealing With Receivables | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.02 | Modification of Receivables | 26 |
| **Article VIII REMEDIES** | **Article VIII REMEDIES** | **26** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.01 | Remedies | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.02 | No Waiver and Cumulative Remedies | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.03 | Application of Proceeds | 29 |
| **Article IX MISCELLANEOUS** | **Article IX MISCELLANEOUS** | **29** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9.01 | Concerning Secured Party | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9.02 | Performance By Secured Party | 29 |

---

ii

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9.03 | Power of Attorney | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9.04 | Continuing Security Interest and Assignment | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9.05 | Termination and Release | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9.06 | Modification in Writing | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9.07 | Notices | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9.08 | Indemnity and Expenses | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9.09 | Governing Law, Consent to Jurisdiction and Waiver of Jury Trial | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9.10 | Severability of Provisions | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9.11 | Counterparts; Integration; Effectiveness | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9.12 | No Release | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9.13 | Obligations Absolute | 34 |

---

iii

**SECURITY AGREEMENT**

This SECURITY AGREEMENT, dated as of November 6, 2023 (as amended, amended and restated, supplemented or otherwise modified from time to time in accordance with the provisions hereof, this "**Agreement**") made by and among Encore Medical, Inc., Minnesota corporation (the "**Borrower**") and the guarantors from time to time party hereto by execution of a joinder agreement (the "**Guarantors**"), as grantors, pledgors, assignors and debtors (the Borrower, together with the Guarantors, in such capacities and together with any successors in such capacities, the "**Grantors**", and each, a "**Grantor**"), in favor of Merit Medical Systems, Inc., a Utah corporation, pursuant to the Loan Agreement (as hereinafter defined), as pledgee, assignee and secured party (the "**Secured Party**" or the "**Lender**").

**RECITALS**

The Borrower and the Secured Party have, in connection with the execution and delivery of this Agreement, entered into that certain Loan Agreement, dated as of the date hereof (as amended, amended and restated, supplemented or otherwise modified from time to time, the "**Loan Agreement**"); capitalized terms used but not otherwise defined herein shall have the meanings assigned to such terms in the Loan Agreement.

The Borrower and each Guarantor will receive substantial direct and indirect benefits from the execution, delivery and performance of the obligations under the Loan Agreement and the other Loan Documents and each is, therefore, willing to enter into this Agreement.

This Agreement is given by each Grantor in favor of the Secured Party to secure the payment and performance of all of the Secured Obligations.

It is a condition to the obligation of the Lender to make the Loan under the Loan Agreement, that each Grantor execute and deliver the applicable Loan Documents, including this Agreement.

NOW THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Grantor and the Secured Party hereby agree as follows:

**Article I** **<br> DEFINITIONS AND INTERPRETATION**

**Section 1.01** **Definitions**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless otherwise defined herein or in the Loan Agreement, capitalized terms used herein that are defined in the UCC shall have the meanings assigned to them in the UCC. However, if a term is defined in Article 9 of the UCC differently than in another Article of the UCC, the term has the meaning specified in Article 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The following terms shall have the following meanings:

"**Agreement**" has the meaning set forth in the Preamble hereof.

"**Borrower**" has the meaning set forth in the Preamble hereof.

"**Claims**" means any and all property and other taxes, assessments and special assessments, levies, fees and all governmental charges imposed upon or assessed against, and landlords', carriers', mechanics', workmen's, repairmen's, laborers', materialmen's, suppliers' and warehousemen's Liens and other claims arising by operation of law against, all or any portion of the Pledged Collateral.

"**Secured Party**" has the meaning set forth in the Preamble hereof.

"**Collateral Support**" means all Property assigned, hypothecated or otherwise securing any Pledged Collateral and shall include any security agreement or other agreement granting a Lien or security interest in such Property.

"**Commodity Account Control Agreement**" means a control agreement in form and substance satisfactory to the Secured Party establishing the Secured Party's Control with respect to any Commodity Account.

"**Commodity Exchange Act**" means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.

"**Contracts**" means, collectively, with respect to each Grantor, the Intellectual Property Licenses, all sale, service, performance, equipment or property lease contracts, agreements and grants and all other contracts, agreements or grants (in each case, whether written or oral, or third party or intercompany), between such Grantor and any third party, and all assignments, amendments, restatements, supplements, extensions, renewals, replacements or modifications thereof.

"**Control**" means (i) with respect to any Deposit Account, "control," within the meaning of Section 9-104 of the UCC, (ii) with respect to any Securities Account, Security Entitlement, Commodity Contract or Commodity Account, control within the meaning of Section 9-106 of the UCC, (iii) with respect to any Uncertificated Security, control within the meaning of Section 8-106(c) of the UCC, (iv) with respect to any Certificated Security, control within the meaning of Section 8-106(a) or (b) of the UCC, (v) with respect to any Electronic Chattel Paper, control within the meaning of Section 9-105 of the UCC, (vi) with respect to Letter-of-Credit Rights, control within the meaning of Section 9-107 of the UCC and (vii) with respect to any "transferable record" (as that term is defined in Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or in Section 16 of the Uniform Electronic Transactions Act as in effect in any relevant jurisdiction), control within the meaning of Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or in Section 16 of the Uniform Electronic Transactions Act as in effect in the jurisdiction relevant to such transferable record.

"**Control Agreements**" means, collectively, the Deposit Account Control Agreement, the Securities Account Control Agreement and the Commodity Account Control Agreement.

"**Copyrights**" means, collectively, with respect to each Grantor, all copyrights (whether statutory or common law, whether established or registered in the United States or any other country or any political subdivision thereof, whether registered or unregistered and whether published or unpublished) including those listed in Schedule 6 hereof, all tangible embodiments of the foregoing and all copyright registrations and applications made by such Grantor, in each case, whether now owned or hereafter created or acquired by or assigned to such Grantor, together with any and all (i) rights and privileges arising under applicable law and international treaties and conventions with respect to such Grantor's use of such copyrights, (ii) reissues, renewals, continuations and extensions thereof and amendments thereto, (iii) income, fees, royalties, damages, claims and payments now or hereafter due and/or payable with respect thereto, including damages and payments for past, present or future infringements thereof, (iv) rights corresponding thereto throughout the world and (v) rights to sue for past, present or future infringements thereof.

"**Deposit Accounts**" means, collectively, with respect to each Grantor, (i) all "deposit accounts" as such term is defined in the UCC and (ii) all cash, funds, checks, notes and instruments from time to time on deposit in any of the accounts or sub-accounts described in clause (i) of this definition.

"**Distributions**" means, collectively, with respect to each Grantor, all dividends, cash, options, warrants, rights, instruments, distributions, returns of capital or principal, income, interest, profits and other property, interests (debt or equity) or proceeds, including as a result of a split, revision, reclassification or other like change of the Pledged Securities, from time to time received, receivable or otherwise distributed or distributable to such Grantor in respect of or in exchange for any or all of the Pledged Securities or Pledged Debt.

"**Excluded Property**" means, collectively:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any lease, license or other agreement or Contract or any property subject to a purchase money security interest, Lien securing a Capital Lease Obligation or similar arrangement, in each case permitted to be incurred under the Loan Agreement, to the extent that a grant of a security interest or Lien therein would require a consent not obtained or violate or invalidate such lease, license or agreement or Contract or purchase money arrangement, Capital Lease Obligation or similar arrangement or create a right of termination in favor of any other party thereto (other than the Borrower or another Grantor), in each case after giving effect to the applicable anti-assignment provisions of the UCC and other applicable law and other than Proceeds and receivables thereof, the assignment of which is expressly deemed effective under the UCC or other applicable law notwithstanding such prohibition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any United States intent-to-use Trademark applications to the extent that, and solely during the period in which, the grant, attachment or enforcement of a security interest therein would, under applicable federal law, impair the registrability of such applications or the validity or enforceability of registrations issuing from such applications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) motor vehicles and other assets subject to certificates of title (other than to the extent a Lien thereon can be perfected by the filing of a financing statement under the UCC);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) those assets as to which the Secured Party shall reasonably determine, in writing, that the cost or other consequence of obtaining a Lien thereon or perfection thereof are excessive in relation to the benefit to the Secured Parties of the security to be afforded thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any asset or property to the extent that the grant of a security interest is prohibited by applicable law, rule or regulation or requires a consent not obtained of any Governmental Authority pursuant to such applicable law, rule or regulation, in each case after giving effect to the applicable anti-assignment provisions of the UCC and other applicable law and other than Proceeds and receivables thereof, the assignment of which is expressly deemed effective under the UCC or other applicable law notwithstanding such prohibition; provided, however, "Excluded Property" shall not include any Proceeds, products, substitutions or replacements of any Excluded Property (unless such Proceeds, products, substitutions or replacements would constitute Excluded Property). In addition, to the extent that such property constitutes "Excluded Property" due to the failure of a Grantor to obtain consent as described in clauses (ii), such Grantor shall obtain such consent, and, upon obtaining such consent, such property shall cease to constitute "Excluded Property".

"**Extension of Credit**" means the making of the Loan under the Loan Agreement.

"**First Priority**" means, with respect to any Lien purported to be created in any Pledged Collateral pursuant to this Agreement, such Lien is the most senior lien to which such Pledged Collateral is subject (subject only to Liens permitted under the Loan Agreement).

"**Grantor**" has the meaning set forth in the Preamble hereof.

"**Guarantors**" has the meaning set forth in the Preamble hereof.

"**Intellectual Property Collateral**" means, collectively, the Patents, Trademarks (excluding only United States intent-to-use Trademark applications to the extent that and solely during the period in which the grant of a security interest therein would impair, under applicable federal law, the registrability of such applications or the validity or enforceability of registrations issuing from such applications), Copyrights, Trade Secrets, Intellectual Property Licenses and all other industrial, intangible and intellectual property of any type, including mask works and industrial designs.

"**Intellectual Property Licenses**" means, collectively, with respect to each Grantor, all license and distribution agreements with, and covenants not to sue, any other party with respect to any Patent, Trademark, Copyright or Trade Secret or any other patent, trademark, copyright or trade secret, whether such Grantor is a licensor or licensee, distributor or distributee under any such license or distribution agreement, including such agreements listed in Schedule 6 hereof, together with any and all (i) renewals, extensions, supplements and continuations thereof, (ii) income, fees, royalties, damages, claims and payments now and hereafter due and/or payable thereunder and with respect thereto including damages and payments for past, present or future infringements or violations thereof, (iii) rights to sue for past, present and future infringements or violations thereof and (iv) other rights to use, exploit or practice any or all of the Patents, Trademarks, Copyrights or Trade Secrets or any other patent, trademark, copyright or trade secret.

"**Intellectual Property Security Agreement**" means an agreement substantially in the form of Exhibit B hereto or such other form satisfactory to the Secured Party.

"**Joinder Agreement**" means an agreement substantially in the form of Exhibit A hereto.

"**Lender**" has the meaning set forth in the first Recital hereof.

"**Loan Agreement**" has the meaning set forth in the first Recital hereof.

"**Organizational Documents**" means the certificate of incorporation and by-laws or any comparable organizational documents of any corporate entity (including limited liability companies and partnerships).

"**Patents**" means, collectively, with respect to each Grantor, all patents issued or assigned to, and all patent applications and registrations made by, such Grantor including those listed in Schedule 6 hereof (whether issued, established or registered or recorded in the United States or any other country or any political subdivision thereof) and all tangible embodiments of the foregoing, together with any and all (i) rights and privileges arising under applicable law and international treaties and conventions with respect to such Grantor's use of any patents, (ii) inventions and improvements described and claimed therein, (iii) reissues, divisions, continuations, renewals, extensions and continuations-in-part thereof and amendments thereto, (iv) income, fees, royalties, damages, claims and payments now or hereafter due and/or payable thereunder and with respect thereto including damages and payments for past, present or future infringements thereof, (v) rights corresponding thereto throughout the world and (vi) rights to sue for past, present or future infringements thereof.

"**Pledged Collateral**" has the meaning set forth in Section 2.01.

"**Pledged Debt**" means, with respect to each Grantor, all Debt (including intercompany notes) from time to time owed to such Grantor by any obligor, including the Debt described in Schedule 2 hereof and issued by the obligors named therein, and all interest, cash, instruments and other property, assets or proceeds from time to time received, receivable or otherwise distributed or distributable in respect of or in exchange for any or all of such Debt and all certificates, instruments or agreements evidencing such Debt, and all assignments, amendments, restatements, supplements, extensions, renewals, replacements or modifications thereof.

"**Pledged Securities**" means, collectively, with respect to each Grantor, (i) all issued and outstanding Equity Interests of each Subsidiary that is owned by such Grantor and all options, warrants, rights, agreements and additional Equity Interests of whatever class of any such Subsidiary acquired by such Grantor in any manner, together with all claims, rights, privileges, authority and powers of such Grantor relating to such Equity Interests in each such Subsidiary or under any Organizational Document of each such Subsidiary, and the certificates, instruments and agreements representing such Equity Interests and any and all interest of such Grantor in the entries on the books of any financial intermediary pertaining to such Equity Interests, including the Equity Interests listed in Schedule 2 hereof, (ii) all additional Equity Interests of any Subsidiary from time to time acquired by or issued to such Grantor and all options, warrants, rights, agreements and additional Equity Interests of whatever class of any such Subsidiary from time to time acquired by such Grantor in any manner, together with all claims, rights, privileges, authority and powers of such Grantor relating to such Equity Interests or under any Organizational Document of any such Subsidiary, and the certificates, instruments and agreements representing such Equity Interests and any and all interest of such Grantor in the entries on the books of any financial intermediary pertaining to such Equity Interests, from time to time acquired by such Grantor in any manner, and (iii) all Equity Interests issued in respect of the Equity Interests referred to in clause (i) or (ii) upon any consolidation or merger of any issuer of such Equity Interests/all Equity Interests of any successor Subsidiary owned by such Grantor (unless such Grantor is the surviving entity) formed by or resulting from any consolidation or merger in which any Person listed in Schedule 2 hereof is not the surviving entity.

"**Receivables**" means all (i) Accounts, (ii) Chattel Paper, (iii) Payment Intangibles, (iv) Instruments, (v) General Intangibles, and (vi) to the extent not otherwise covered above, all other rights to payment, whether or not earned by performance, for goods or other property sold, leased, licensed, assigned or otherwise disposed of, or services rendered or to be rendered, regardless of how classified under the UCC together with all of Grantors' rights, if any, in any goods or other property giving rise to such right to payment and all Collateral Support and Supporting Obligations related thereto and all Records relating thereto.

"**Related Parties**" means, with respect to any Person, such Person's Affiliates and the directors, officers, employees, partners, agents, trustees, administrators, managers, advisors and representatives of it and its Affiliates.

"**Secured Obligations**" means (i) obligations of the Borrower and the other Loan Parties from time to time arising under the Loan Agreement, any other Loan Document or otherwise with respect to the due and prompt payment of (A) the principal of and premium, if any, and interest (including interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding ("**Postpetition Interest**")) on the Loan, when and as due, whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise, (B) obligations of the Borrower under the Right of First Offer Agreement and (C)all other monetary obligations, including fees, costs, attorneys' fees and disbursements, reimbursement obligations, contract causes of action, expenses and indemnities, whether primary, secondary, direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), of the Borrower and the other Loan Parties under or in respect of any Loan Document, and (ii) the due and prompt performance of all other covenants, duties, debts, obligations and liabilities of any kind of the Borrower and the other Loan Parties, individually or collectively, under or in respect of the Loan Agreement, this Agreement, the other Loan Documents or any other document made, delivered or given in connection with any of the foregoing, in each case whether evidenced by a note or other writing, whether allowed in any bankruptcy, insolvency, receivership or other similar proceeding, whether arising from an extension of credit, issuance of a letter of credit, acceptance, loan, guaranty, indemnification or otherwise, and whether primary, secondary, direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, fixed or otherwise.

"**Securities Collateral**" means, collectively, the Pledged Securities, the Pledged Debt and the Distributions.

"**Trade Secrets**" means, collectively, with respect to each Grantor, all know-how, trade secrets, manufacturing and production processes and techniques, inventions, research and development information, technical, marketing, financial and business data and databases, pricing and cost information, business and marketing plans, customer and supplier lists and information, all other confidential and proprietary information and all tangible embodiments of the foregoing, together with any and all (i) rights and privileges arising under applicable law and international treaties and conventions with respect to such trade secrets, (ii) income, fees, royalties, damages, claims and payments now or hereafter due and/or payable with respect thereto including damages and payments for past, present or future misappropriations thereof, (iii) rights corresponding thereto throughout the world and (iv) rights to sue for past, present or future misappropriations thereof.

"**Trademarks**" means, collectively, with respect to each Grantor, all trademarks (including service marks), slogans, logos, symbols, certification marks, collective marks, trade dress, uniform resource locators (URL's), domain names, corporate names and trade names, whether statutory or common law, whether registered or unregistered and whether established or registered in the United States or any other country or any political subdivision thereof, including those listed in Schedule 6 hereof, that are owned by or assigned to such Grantor, all registrations and applications for the foregoing and all tangible embodiments of the foregoing, together with, in each case, the goodwill symbolized thereby and any and all (i) rights and privileges arising under applicable law and international treaties and conventions with respect to such Grantor's use of any trademarks, (ii) reissues, continuations, extensions and renewals thereof and amendments thereto, (iii) income, fees, royalties, damages and payments now and hereafter due and/or payable thereunder and with respect thereto, including damages, claims and payments for past, present or future infringements thereof, (iv) rights corresponding thereto throughout the world and (v) rights to sue for past, present and future infringements thereof.

"**UCC**" means the Uniform Commercial Code as in effect from time to time in the State of Delaware; provided, however, that if by reason of mandatory provisions of law, any or all of the perfection or priority of the Secured Party's security interest in any item or portion of the Pledged Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of Delaware, the term "**UCC**" means the Uniform Commercial Code as in effect from time to time in such other jurisdiction for purposes of the provisions hereof relating to such perfection or priority and for purposes of definitions relating to such provisions.

**Section 1.02** **Interpretation**. The rules of interpretation specified in the Loan Agreement shall be applicable to this Agreement. All references in this Agreement to Sections are references to Sections of this Agreement unless otherwise specified.

**Section 1.03** **Resolution of Drafting Ambiguities**. Each Grantor acknowledges and agrees that it was represented by counsel in connection with the execution and delivery of this Agreement, that it and its counsel reviewed and participated in the preparation and negotiation of this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party (i.e., the Secured Party) shall not be employed in the interpretation of this Agreement.

**Section 1.04** **Schedules**. The Secured Party and each Grantor agree that the Schedules hereof and all descriptions of Pledged Collateral contained in the Schedules and all amendments and supplements thereto are and shall at all times remain a part of this Agreement.

**Article II** **<br> GRANT OF SECURITY INTEREST**

**Section 2.01** **Grant of Security Interest**. As collateral security for the payment and performance in full of all the Secured Obligations, each Grantor hereby pledges to the Secured Party, and grants to the Secured Party a Lien on and security interest in and to, all of the right, title and interest of such Grantor in, to and under the following property, wherever located, and whether now existing or hereafter arising or acquired from time to time (collectively, the "**Pledged Collateral**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all Accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all Equipment, Goods, Inventory and Fixtures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all Documents, Instruments and Chattel Paper;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all Letters of Credit and Letter-of-Credit Rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all Securities Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all Investment Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all Intellectual Property Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Commercial Tort Claims described on Schedule 9 hereof as supplemented by any written notification given by a Grantor to the Secured Party pursuant to Section 3.04(f);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all General Intangibles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) all Money and all Deposit Accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) all Supporting Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) all books and records, customer lists, credit files, computer files, programs, printouts and other computer materials and records relating to the Pledged Collateral and any General Intangibles at any time evidencing or relating to any of the foregoing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) to the extent not covered by clauses (a) through (1) of this sentence, all other assets, personal property and rights of such Grantor, whether tangible or intangible, all Proceeds and products of each of the foregoing and all accessions of and to, substitutions and replacements for, and rents, profits and products of, each of the foregoing, and any and all Proceeds of any insurance, indemnity, warranty or guaranty payable to such Grantor from time to time with respect to any of the foregoing.

The Grantors shall from time to time at the request of the Secured Party give written notice to the Secured Party identifying in reasonable detail the Excluded Property (and stating in such notice that such Excluded Property constitutes "**Excluded Property**") and shall provide to the Secured Party such other information regarding the Excluded Property as the Secured Party may reasonably request.

From and after the Closing Date, no Grantor shall permit to become effective, in any lease, license, Contract or other agreement, a provision that would prohibit or require the consent of any Person to the grant of a Lien on such lease, license, Contract or other agreement in favor of the Secured Party.

**Section 2.02** **Filings**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Grantor hereby irrevocably authorizes the Secured Party at any time and from time to time to file in any relevant jurisdiction any financing statements (including fixture filings) and amendments thereto that contain the information required by Article 9 of the UCC of each applicable jurisdiction for the filing of any financing statement or amendment relating to the Pledged Collateral, including (i) whether such Grantor is an organization, the type of organization and, if required, any organizational identification number issued to such Grantor, (ii) any financing or continuation statements or other documents for the purpose of perfecting, confirming, continuing, enforcing or protecting the security interest granted by such Grantor hereunder, without the signature of such Grantor where permitted by law, including the filing of a financing statement describing the Pledged Collateral as "all assets" or "all personal property" of such Grantor or words of similar effect or as being of an equal or lesser scope or with greater detail and (iii) in the case of a financing statement filed as a fixture filing or covering Pledged Collateral constituting minerals or the like to be extracted or timber to be cut, a sufficient description of the real property to which such Pledged Collateral relates. Each Grantor agrees to provide all information described in the immediately preceding sentence to the Secured Party promptly upon request by the Secured Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Grantor hereby further authorizes the Secured Party to file with the United States Patent and Trademark Office and the United States Copyright Office (and any successor office and any similar office in any United States state or other country) this Agreement, the Intellectual Property Security Agreement, and other documents for the purpose of perfecting, confirming, continuing, enforcing or protecting the security interest granted by such Grantor hereunder, without the signature of such Grantor where permitted by law, and naming such Grantor as debtor, and the Secured Party as secured party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Grantor hereby ratifies its authorization for the Secured Party to have filed in any relevant jurisdiction any initial financing statements or amendments thereto relating to the Pledged Collateral if filed prior to the date hereof.

**Article III** **<br> PERFECTION AND FURTHER ASSURANCES**

**Section 3.01** **Perfection of Certificated Securities Collateral**. Each Grantor represents and warrants that all certificates, agreements or instruments representing or evidencing the Securities Collateral in existence on the date hereof have been delivered to the Secured Party in suitable form for transfer by delivery or accompanied by duly executed undated instruments of transfer or assignment in blank and that (assuming continuing possession by the Secured Party of any such Securities Collateral) the Secured Party has a perfected First Priority security interest therein. Each Grantor hereby agrees that all certificates, agreements or instruments representing or evidencing the Securities Collateral acquired by such Grantor after the date hereof, shall immediately upon receipt thereof by such Grantor be held by or on behalf of and delivered to the Secured Party in suitable form for transfer by delivery or accompanied by duly executed undated instruments of transfer or assignment in blank, all in form and substance satisfactory to the Secured Party.

The Secured Party shall have the right, at any time upon the occurrence and during the continuance of any Event of Default, to endorse, assign or otherwise transfer to or to register in the name of the Secured Party or any of its nominees or endorse for negotiation any or all of the Securities Collateral, without any indication that such Securities Collateral is subject to the security interest hereunder.

**Section 3.02** **Perfection of Uncertificated Securities Collateral**. Each Grantor represents and warrants that the Secured Party has a perfected First Priority security interest in all uncertificated Pledged Securities pledged by it hereunder that are in existence on the date hereof. Each Grantor hereby agrees that if any of the Pledged Securities are at any time not evidenced by certificates of ownership, such Grantor will (a) cause the issuer thereof to either (i) register the Secured Party as the registered owner of such securities or (ii) agree in an authenticated record with such Grantor and the Secured Party that such issuer will comply with instructions with respect to such securities originated by the Secured Party without further consent of such Grantor, such authenticated record to be in form and substance satisfactory to the Secured Party, (b) upon request by the Secured Party, provide to the Secured Party an opinion of counsel, in form and substance satisfactory to the Secured Party, confirming such pledge and perfection thereof, and (c) request the issuer of such Pledged Securities to cause such Pledged Securities to become certificated and in the event such Pledged Securities become certificated, to deliver such Pledged Securities to the Secured Party in accordance with the provisions of Section 3.01. Each Grantor hereby agrees, with respect to Pledged Securities that are partnership interests or limited liability company interests, that after the occurrence and during the continuance of any Event of Default, upon request by the Secured Party, such Grantor will (A) cause the Organizational Documents of each issuer that is a Subsidiary of the Borrower to be amended to provide that such Pledged Securities shall be treated as "securities" for purposes of the UCC and (B) cause such Pledged Securities to become certificated and delivered to the Secured Party in accordance with the provisions of Section 3.01.

**Section 3.04** **Other Actions for Perfection**. In order to further ensure the attachment, perfection and priority of, and the ability of the Secured Party to enforce, the Secured Party's security interest in the Pledged Collateral, each Grantor represents and warrants (as to itself) as follows and agrees, in each case at such Grantor's own expense, to take the following actions with respect to the following Pledged Collateral:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Instruments and Tangible Chattel Paper</u>. (i) As of the date hereof, no amounts payable to such Grantor under or in connection with any of the Pledged Collateral are evidenced by any Instrument or Tangible Chattel Paper other than Instruments and Tangible Chattel Paper listed on Schedule 4 hereof and (ii) each Instrument and each item of Tangible Chattel Paper listed on Schedule 4 hereof has been properly endorsed, assigned and delivered to the Secured Party, accompanied by undated instruments of transfer or assignment duly executed in blank. If any amount then payable under or in connection with any of the Pledged Collateral shall be evidenced by any Instrument or Tangible Chattel Paper, the Grantor acquiring such Instrument or Tangible Chattel Paper shall immediately (but in any event within five Business Days after receipt thereof by such Grantor) endorse, assign and deliver the same to the Secured Party, accompanied by such undated instruments of transfer or assignment duly executed in blank as the Secured Party may from time to time specify.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Deposit Accounts</u>. (i) As of the date hereof, no Grantor has opened or maintains any Deposit Accounts other than the accounts listed in Schedule 7 hereof and (ii) the Secured Party has a perfected First Priority security interest in each Deposit Account) listed in Schedule 7 hereof No Grantor shall hereafter establish and maintain any Deposit Account unless (1) the applicable Grantor shall have given the Secured Party 30 days prior written notice of its intention to establish such new Deposit Account with a depository bank,(2) the depository bank shall be acceptable to the Secured Party and (3) unless the Secured Party agrees in writing that it is not required, such depository bank and, at the Secured Party's request, such Grantor shall have duly executed and delivered to the Secured Party a Deposit Account Control Agreement with respect to such Deposit Account. The provisions of this Section 3.04(b) shall not apply to any Deposit Accounts for which the Secured Party is the depository bank. No Grantor shall grant Control of any Deposit Account to any Person other than the Secured Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Investment Property</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) As of the date hereof, no Grantor (1) has any Securities Accounts or Commodity Accounts other than those listed in Schedule 7 hereof and the Secured Party has a perfected First Priority security interest in such Securities Accounts and Commodity Accounts which security interest is perfected by Control unless the Secured Party agrees in writing that it is not required, (2) holds, owns or has any interest in any certificated securities or uncertificated securities other than those constituting Pledged Securities and those maintained in Securities Accounts or Commodity Accounts listed in Schedule 7 hereof. Unless the Secured Party agrees in writing that it is not required, as of the date hereof, each Grantor has duly authorized, executed and delivered a Securities Account Control Agreement or a Commodity Account Control Agreement with respect to each Securities Account or Commodity Account listed in Schedule 7 hereof, if any, as applicable. No Grantor shall hereafter establish or maintain any Securities Account or Commodity Account with any Securities Intermediary or Commodity Intermediary unless (A) the applicable Grantor shall have given the Secured Party 30 days prior written notice of its intention to establish such new Securities Account or Commodity Account with such Securities Intermediary or Commodity Intermediary, (B) such Securities Intermediary or Commodity Intermediary shall be reasonably acceptable to the Secured Party and (C) unless the Secured Party agrees in writing that it is not required, such Securities Intermediary or Commodity Intermediary, as the case may be, and such Grantor shall have duly executed and delivered a Control Agreement with respect to such Securities Account or Commodity Account, as the case may be. Each Grantor shall accept any cash and Investment Property in trust for the benefit of the Secured Party and within five (5) Business Days of actual receipt thereof, deposit any and all cash and Investment Property (other than any Investment Property pledged pursuant to clauses (ii)(1), (iii)(1) or (iii)(3) below) received by it into a Deposit Account or Securities Account subject to the Secured Party's Control. The provisions of this Section 3.04(c) shall not apply to any Financial Assets credited to a Securities Account for which the Secured Party is the Securities Intermediary. No Grantor shall grant Control over any Investment Property to any Person other than the Secured Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If any Grantor shall at any time hold or acquire any certificated securities constituting Investment Property, such Grantor shall promptly (1) endorse, assign and deliver the same to the Secured Party, accompanied by such undated instruments of transfer or assignment duly executed in blank, all in form and substance satisfactory to the Secured Party or (2) deliver such securities into a Securities Account with respect to which a Securities Account Control Agreement is in effect in favor of the Secured Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If any securities now or hereafter acquired by any Grantor constituting Investment Property are uncertificated and are issued to such Grantor or its nominee directly by the issuer thereof, such Grantor shall promptly notify the Secured Party thereof and pursuant to an agreement in form and substance reasonably satisfactory to the Secured Party, either (1) cause the issuer to agree to comply with instructions from the Secured Party as to such securities, without further consent of any Grantor or such nominee, (2) cause a Security Entitlement with respect to such uncertificated security to be held in a Securities Account with respect to which the Secured Party has Control or (3) arrange for the Secured Party to become the registered owner of such securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Electronic Chattel Paper and Transferable Records</u>. As of the date hereof, no amount under or in connection with any of the Pledged Collateral is evidenced by any Electronic Chattel Paper or any "transferable record" (as that term is defined in Section 201 of the Federal Electronic Signatures in Global and National Commerce Act, or in Section 16 of the Uniform Electronic Transactions Act as in effect in any relevant jurisdiction) other than such Electronic Chattel Paper and transferable records listed on Schedule 4 hereof.

Each Grantor will maintain all (i) Electronic Chattel Paper so that the Secured Party has Control of the Electronic Chattel Paper and (ii) all transferable records so that the Secured Party has Control of the transferable records.

The Secured Party agrees with such Grantor that the Secured Party will arrange, pursuant to procedures satisfactory to the Secured Party and so long as such procedures will not result in the Secured Party's loss of Control, for the Grantor to make alterations to the Electronic Chattel Paper or transferable record permitted under Section 9-105 of the UCC or, as the case may be, Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or Section 16 of the Uniform Electronic Transactions Act for a party in Control to allow without loss of Control, unless an Event of Default has occurred and is continuing or would occur after taking into account any action by such Grantor with respect to such Electronic Chattel Paper or transferable record.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Letter-of-Credit Rights</u>. If any Grantor is at any time a beneficiary under a Letter of Credit now or hereafter issued in favor of such Grantor, such Grantor shall promptly notify the Secured Party thereof and such Grantor shall maintain all Letter-of-Credit Rights assigned to the Secured Party so that the Secured Party has Control of the Letter-of-Credit Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Commercial Tort Claims</u>. On the date hereof, no Grantor holds any Commercial Tort Claim which might reasonably result in awarded damages (less any and all legal and other expenses incurred or reasonably expected to be incurred by such Grantor) in excess of $100,000 that is not listed on Schedule 9. Each Grantor will immediately give notice to the Secured Party of any Commercial Tort Claim that is commenced in the future and will immediately execute or otherwise authenticate a supplement to this Agreement, and otherwise take all necessary action, to subject such Commercial Tort Claim to the First Priority security interest created under this Agreement.

**Section 3.05** **Joinder of Additional Grantors**. The Grantors shall cause each Subsidiary of the Borrower which, from time to time, after the date hereof shall be required to pledge any assets to the Secured Party pursuant to the provisions of the Loan Agreement, to execute and deliver to the Secured Party a Joinder Agreement within 30 days of the date on which it was acquired or created and, upon such execution and delivery, such Subsidiary shall constitute a "Grantor" for all purposes hereunder with the same force and effect as if originally named as a Grantor herein. Upon the execution and delivery by any Subsidiary of a Joinder Agreement, the supplemental schedules attached to such Joinder Agreement shall be incorporated into and become part of and supplement the Schedules to this Agreement and each reference to such Schedules shall mean and be a reference to such Schedules as supplemented pursuant to each Joinder Agreement and from time to time. The execution and delivery of such Joinder Agreement shall not require the consent of any Grantor hereunder. The rights and obligations of each Grantor hereunder shall remain in full force and effect notwithstanding the addition of any new Grantor as a party to this Agreement.

**Section 3.06** **Further Assurances**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Further Assurances</u>. Each Grantor shall take such further actions, and execute and/or deliver to the Secured Party such additional financing statements, amendments, assignments, agreements, supplements, powers and instruments, as the Secured Party may in its judgment deem necessary or appropriate in order to create and/or maintain the validity, perfection or priority of and protect any security interest granted or purported to be granted in the Pledged Collateral as provided herein and the rights and interests granted to the Secured Party hereunder, and enable the Secured Party to exercise and enforce its rights, powers and remedies hereunder with respect to any Pledged Collateral, including the filing of any financing statements, continuation statements and other documents under the UCC (or other similar laws) in effect in any jurisdiction with respect to the security interest created hereby, the filing of the Intellectual Property Security Agreement and supplemental Intellectual Property Security Agreements with the United States Patent and Trademark Office and the United States Copyright Office and the execution and delivery of Control Agreements with respect to Securities Accounts, Commodities Accounts and Deposit Accounts, all in form satisfactory to the Secured Party and in such offices wherever required by law to perfect, continue and maintain the validity, enforceability and priority of the security interest in the Pledged Collateral as provided herein and to preserve the other rights and interests granted to the Secured Party hereunder, as against third parties, with respect to the Pledged Collateral. Without limiting the generality of the foregoing, but subject to applicable law, each Grantor shall make, execute, endorse, acknowledge, file or refile and/or deliver to the Secured Party from time to time upon request by the Secured Party such lists, schedules, descriptions and designations of the Pledged Collateral, statements, copies of warehouse receipts, bills of lading, documents of title, vouchers, invoices, schedules, confirmatory assignments, supplements, additional security agreements, conveyances, financing statements, transfer endorsements, powers of attorney, certificates, reports and other assurances or instruments as the Secured Party shall reasonably request. If an Event of Default has occurred and is continuing, the Secured Party may institute and maintain, in its own name or in the name of any Grantor, such suits and proceedings as the Secured Party may be advised by counsel to be necessary or expedient to prevent any impairment of the security interest in or the perfection thereof in the Pledged Collateral. All of the foregoing shall be at the sole cost and expense of the Grantors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Report</u>. Within 30 days after the end of each calendar year the Borrower shall furnish the Secured Party with a report listing for such year:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Subsidiary formed or acquired by any Grantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any certificated securities, uncertificated securities, other equity interests or Debt not held in a Securities Account acquired by any Grantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any change in name or jurisdiction of organization of any Grantor as permitted by the Loan Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any new location of Inventory or Equipment of any Grantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all Promissory Notes, Instruments or Chattel Paper received by any Grantor with a value in excess of $100,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any Securities Account, Commodities Account or Deposit Account opened by any Grantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) all applications for and registration received by any Grantor in respect of any Intellectual Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) any Letter of Credit Rights acquired by any Grantor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) any Commercial Tort Claims acquired by any Grantor.

**Article IV** **<br> REPRESENTATIONS, WARRANTIES AND COVENANTS**

Each Grantor represents, warrants and covenants as follows:

**Section 4.01** **Loan Agreement Representations**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Loan Agreement Representations</u>. Each Grantor makes the representations and warranties set forth in Article IV of the Loan Agreement as they relate to the Grantors or to the Loan Documents to which any Grantor is a party, each of which is hereby incorporated herein by reference, and the Secured Party shall be entitled to rely on each of them as if they were fully set forth herein, provided that each reference in each such representation and warranty to the Borrower's knowledge shall, for the purposes of this Section 4.01, be deemed to be a reference to the Grantors' knowledge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Existence</u>. Each Grantor (i) is duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation, (ii) is duly qualified as a foreign corporation or other organization and in good standing under the laws of each jurisdiction where its ownership, lease or operation of property or the conduct of its business requires such qualification except to the extent that the failure to qualify in such jurisdiction could not reasonably be expected to have a Material Adverse Effect and (iii) is in compliance with all Requirements of Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Power and Authorization</u>. Each Grantor has the power and authority, and the legal right, to own or lease and operate its property, and to carry on the business as now conducted and as proposed to be conducted, and to execute, deliver and perform the Loan Documents to which it is a party. Each Grantor has taken all necessary organizational action to authorize the execution, delivery and performance of the Loan Documents to which it is a party. No consent or authorization of, filing with, notice to or other act by, or in respect of, any Governmental Authority or any other Person is required in connection with the execution, delivery, performance, validity or enforceability of this Agreement or any of the Loan Documents, except the filings referred to in Schedule 3. Each Loan Document has been duly executed and delivered by each Grantor thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Enforceability</u>. This Agreement constitutes, and each other Loan Document when delivered hereunder will constitute, a legal, valid and binding obligation of each Grantor thereto, enforceable against each such Grantor in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No Litigation</u>. No action, suit, litigation, investigation or proceeding of or before any arbitrator or Governmental Authority is pending or, to the knowledge of any Grantor, threatened by or against any Grantor or against any of its property or assets (i) with respect to any of the Loan Documents or any of the transactions contemplated hereby or thereby, or (ii) that could reasonably be expected to have a Material Adverse Effect.

**Section 4.02** **Ownership of Property and No Other Liens**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Grantor has fee simple title to, or a valid leasehold interest in, all its real property, and good title to, or a valid leasehold interest in, all its Pledged Collateral, and none of such property is subject to any Lien, claim, option or right of others, except for the security interest granted to the Secured Party and Liens as permitted under the Loan Agreement and such defects in title as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. No Person other than the Secured Party has control or possession of all or any part of the Pledged Collateral, except as permitted by the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) None of the Pledged Collateral constitutes, or is the Proceeds of, (i) Farm Products, (ii) As-Extracted Collateral, (iii) Manufactured Homes, (iv) Health-Care-Insurance Receivables, (v) timber to be cut, (vi) aircraft, aircraft engines, satellites, ships or railroad rolling stock. None of the account debtors or other Persons obligated on any of the Pledged Collateral is a Governmental Authority covered by the Federal Assignment of Claims Act or like federal, state or local statute or rule in respect of such Pledged Collateral.

**Section 4.03** **Perfected First Priority Security Interest**. This Agreement is effective to create in favor of the Secured Party, a legal, valid and enforceable security interest in the Pledged Collateral and the Proceeds thereof. In the case of the certificated Pledged Securities, when stock certificates representing such Pledged Securities are delivered to the Secured Party and in the case of the other Pledged Collateral, when financing statements and other filings specified on Schedule 33 hereof in appropriate form are filed in the offices specified on Schedule 33 hereof and other actions described in Schedule 33 hereof are taken, this Agreement shall constitute, and will at all times constitute, a fully perfected First Priority Lien on, and security interest in, all rights, title and interest of the Grantors in such Pledged Collateral and the Proceeds thereof, as security for the Secured Obligations.

**Section 4.04** **No Transfer of Pledged Collateral**. No Grantor shall sell, offer to sell, dispose of, convey, assign or otherwise transfer, or grant any option with respect to, restrict, or grant, create, permit or suffer to exist any Lien on, any of the Pledged Collateral pledged by it hereunder or any interest therein except as permitted by the Loan Agreement.

**Section 4.05** **Claims Against Pledged Collateral**. Each Grantor shall, at its own cost and expense, defend title to the Pledged Collateral and the First Priority security interest and Lien granted to the Secured Party with respect thereto against all claims and demands of all Persons at any time claiming any interest therein adverse to the Secured Party other than Liens permitted under the Loan Agreement. Except as expressly permitted by the Loan Agreement or any other Loan Document, there is no agreement to which any Grantor is a party, order, judgment or decree, and no Grantor shall enter into any agreement or take any other action, that could restrict the transferability of any of the Pledged Collateral or otherwise impair or conflict with such Grantors' obligations or the rights of the Secured Party hereunder.

**Section 4.06** **Other Financing Statements**. Such Grantor has not executed, filed, nor authorized any third party to file any financing statement or other instrument similar in effect covering all or any part of the Pledged Collateral or listing such Grantor as debtor in any recording office, except such as have been filed in favor of the Secured Party pursuant to this Agreement or as otherwise permitted under the Loan Agreement.

No Grantor shall execute, authorize or permit to be filed in any recording office any financing statement or other instrument similar in effect covering all or any part of the Pledged Collateral or listing such Grantor as debtor with respect to all or any part of the Pledged Collateral, except financing statements and other instruments filed in respect of Liens permitted under the Loan Agreement.

**Section 4.07** **Changes in Name, Jurisdiction of Organization, Etc**. On the date hereof, such Grantor's type of organization, jurisdiction of organization, legal name, Federal Taxpayer Identification Number, organizational identification number (if any) and chief executive office or principal place of business are indicated next to its name in Schedule 5 hereof. Schedule 5 also lists all of such Grantor's jurisdictions and types of organization, legal names and locations of chief executive office or principal place of business at any time during the four months preceding the date hereof, if different from those referred to in the preceding sentence.

Such Grantor shall not, except upon not less than 30 days' prior written notice (in the form of an officer's certificate), or such lesser notice period agreed to by the Secured Party, to the Secured Party and the Secured Party, and delivery to the Secured Party of all additional financing statements, information and other documents reasonably requested by the Secured Party or the Secured Party to maintain the validity, perfection and priority of the security interests provided for herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) change its legal name, identity, type of organization or corporate structure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) change the location of its chief executive office or its principal place of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) change its Federal Taxpayer Identification Number or organizational identification number (if any); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) change its jurisdiction of organization (in each case, including by merging with or into any other entity, reorganizing, organizing, dissolving, liquidating, reincorporating or incorporating in any other jurisdiction).

Such Grantor shall, prior to any change described in the preceding sentence, take all actions requested by the Secured Party to maintain the perfection and priority of the security interest of the Secured Party in the Pledged Collateral intended to be granted hereunder.

Each Grantor agrees to promptly provide the Secured Party with certified Organizational Documents reflecting any of the changes described in this Section 4.07. Each Grantor also agrees to promptly notify the Secured Party of any change in the location of any office in which it maintains books or records relating to Pledged Collateral owned by it or any office or facility at which Pledged Collateral is located (including the establishment of any such new office or facility).

**Section 4.08** **Location of Inventory and Equipment**. On the date hereof, the material Inventory and the material Equipment (other than mobile goods and goods in transit) of such Grantor are kept at locations listed in Schedule 5 hereof. Schedule 5 also lists the locations of such Grantor's material Inventory and the material Equipment (other than mobile goods and goods in transit) for the four months preceding the date hereof, if different from those referred in the preceding sentence.

Such Grantor shall not move any Equipment or Inventory, in an aggregate amount exceeding $100,000 in value/, to any location, other any location that is listed in Schedule 5 hereof except upon not less than 30 days' prior written notice (in the form of an officer's certificate), or such lesser notice period agreed to by the Secured Party, to the Secured Party and the Secured Party, of its intention so to do, clearly describing such new location and providing such other information and documents to the Secured Party reasonably requested by the Secured Party or the Secured Party to maintain the validity, perfection and priority of the security interests provided for herein.

Such Grantor shall, prior to any change described in the preceding sentence, take all actions requested by the Secured Party to maintain the perfection and priority of the security interest of the Secured Party in the Pledged Collateral, intended to be granted hereunder, including using commercially reasonable efforts to obtain waivers of landlord's or warehousemen's liens with respect to such new location, if applicable, who from time to time have possession of Pledged Collateral having an aggregate value in such new location in excess of $100,000; provided that, in no event shall any Equipment or Inventory of any Grantor be moved to any location outside of the continental United States.

**Section 4.09** **Pledged Securities and Pledged Debt**. Schedule 2 sets forth a complete and accurate list of all Pledged Securities and Pledged Debt held by such Grantor as of the date hereof. The Pledged Securities pledged by such Grantor hereunder constitute all of the issued and outstanding Equity Interests of each Subsidiary owned by such Grantor. Such Equity Interests represent all of the outstanding Equity Interests of each such issuer which is a Subsidiary except as noted in such Schedule. All of the Pledged Securities existing on the date hereof have been, and to the extent any Pledged Securities are hereafter issued, such Pledged Securities will be, upon such issuance, duly authorized, validly issued, fully paid and non-assessable. There is no amount or other obligation owing by any Grantor to any issuer of the Pledged Securities in exchange for or in connection with the issuance of the Pledged Securities or any Grantor's status as a partner or a member of any issuer of the Pledged Securities. No Grantor is in default or violation of any provisions of any agreement to which such Grantor is a party relating to the Pledged Securities, except any such default or violation that could not reasonably be expected to result in a Material Adverse Effect.

All of the Pledged Debt described on Schedule 2 has been duly authorized, authenticated or issued, and delivered and is the legal, valid and binding obligation of the issuers thereof, enforceable in accordance with their respective terms (subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors' rights generally, general equitable principles (whether considered in a proceeding in equity or at law)) and is not in default. The Pledged Debt constitutes all of the issued and outstanding intercompany indebtedness owing to such Grantor and if evidenced by promissory notes, such notes have been delivered to the Secured Party.

No Securities Collateral pledged by such Grantor is subject to any defense, offset or counterclaim, nor have any of the foregoing been asserted or alleged against such Grantor by any Person with respect thereto, and there are no certificates, instruments, documents or other writings (other than the Organizational Documents and certificates representing such Pledged Securities or Pledged Debt, if any, that have been delivered to the Secured Party) which evidence any Pledged Securities or Pledged Debt of such Grantor.

Each Grantor shall, upon obtaining any Pledged Securities or Pledged Debt of any Person, accept the same in trust for the benefit of the Secured Party and immediately (but in any event within five Business Days after receipt thereof) deliver to the Secured Party an updated Schedule 2, and the certificates and other documents required under Section 3.01 and Section 3.02 in respect of the additional Pledged Securities or Pledged Debt which are to be pledged pursuant to this Agreement, and confirming the Lien hereby created on such additional Pledged Securities or Pledged Debt.

**Section 4.10** **Approvals**. In the event that the Secured Party desires to exercise any remedies, voting or consensual rights or attorney-in-fact powers set forth in this Agreement and determines it necessary to obtain any approvals or consents of any Governmental Authority or any other Person therefor, then, upon the request of the Secured Party, such Grantor agrees to assist the Secured Party in obtaining as soon as practicable any necessary approvals or consents for the exercise of any such remedies, rights and power.

**Section 4.11** **Pledged Collateral Information**. All information set forth herein, including the schedules annexed hereto, and all information contained in any documents, schedules and lists heretofore delivered to the Secured Party, in connection with this Agreement, in each case, relating to the Pledged Collateral, is accurate and complete. The Pledged Collateral described on the schedules hereof constitutes all of the property of such type of Pledged Collateral owned or held by the Grantors.

**Section 4.12** **Insurance**. In the event that the proceeds of any insurance claim are paid to any Grantor after the Secured Party has exercised its right to foreclose on all or any part of the Pledged Collateral during the existence of an Event of Default, such Net Cash Proceeds shall be held in trust for the benefit of the Secured Party and immediately after receipt thereof shall be paid to the Secured Party for application to repayment of the Loan.

**Section 4.13** **Compliance With Laws**. Each Grantor shall pay promptly when due all Claims upon the Pledged Collateral or incurred in connection with the use or operation of the Pledged Collateral or incurred in connection with this Agreement. All Claims imposed upon or assessed against the Pledged Collateral have been paid and discharged except to the extent such Claims constitute a Lien not yet due and payable which is a Contested Lien or a Lien permitted by the Loan Agreement. In the event any Grantor shall fail to make such payment contemplated in the immediately preceding sentence, the Secured Party may (following notice to the Grantor, to the extent practicable) do so for the account of such Grantor and the Grantors shall promptly reimburse and indemnify the Secured Party for all costs and expenses incurred by the Secured Party under this Section 4.13 in accordance with Section 9.08. Each Grantor shall comply with all Requirements of Law applicable to the Pledged Collateral the failure to comply with which could reasonably be expected to, individually or in the aggregate, have a Material Adverse Effect. Each Grantor has at all times operated, and shall continue to operate, its business in compliance with all applicable provisions of the federal Fair Labor Standards Act, as amended, and with all applicable provisions of federal, state and local statutes and ordinances dealing with the control, shipment, storage or disposal of hazardous materials or substances.

**Section 4.14** **Intellectual Property**. (a) Schedule 6 lists all patents and pending applications, registered trademarks and pending applications, registered domain names, registered copyrights and pending applications and material Intellectual Property Licenses owned by such Grantor; (b) all Material Intellectual Property Collateral is valid, subsisting, unexpired and enforceable and has not been abandoned; (c) except as described on Schedule 6, such Grantor is the exclusive owner of all right, title and interest in and to, or has the right to use, all such Intellectual Property Collateral; (d) consummation and performance of this Agreement will not result in the invalidity, unenforceability or impairment of any such Intellectual Property Collateral, or in default or termination of any material Intellectual Property License; (e) except as described on Schedule 6, there are no outstanding holdings, decisions, consents, settlements, decrees, orders, injunctions, rulings or judgments that would limit, cancel or question the validity or enforceability of any such Intellectual Property Collateral or such Grantor's rights therein or use thereof; (0 to such Grantor's knowledge, except as described on Schedule 6, the operation of such Grantor's business and such Grantor's use of Intellectual Property Collateral in connection therewith, does not infringe or misappropriate the intellectual property rights of any other Person; (g) except as described in Schedule 6, no action or proceeding is pending or, to such Grantor's knowledge, threatened (i) seeking to limit, cancel or question the validity of any Material Intellectual Property Collateral or such Grantor's ownership interest or rights therein, (ii) which, if adversely determined, could have a Material Adverse Effect on the value of any such Intellectual Property Collateral or (iii) alleging that any such Intellectual Property Collateral, or such Grantor's use thereof in the operation of its business, infringes or misappropriates the intellectual property rights of any Person and (h) to such Grantor's knowledge, there has been no Material Adverse Effect on such Grantor's rights in its material Trade Secrets as a result of any unauthorized use, disclosure or appropriation by or to any Person, including such Grantor's current and former employees, contractors and agents.

**Section 4.15** **Inspection of Pledged Collateral**. Each Grantor shall keep the Pledged Collateral in good order and repair and will not use the same in violation of law or any policy of insurance thereon. Each Grantor shall permit the Secured Party, or its designee, to inspect the Pledged Collateral at any reasonable time, wherever located.

**Article V** **<br> SECURITIES COLLATERAL**

**Section 5.01** **Existing Voting Rights and Distributions**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) So long as no Event of Default shall have occurred and be continuing and the Borrower has not received written notice from the Secured Party stating its intention to exercise its rights and remedies under Section 5.01(c):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Grantor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Securities Collateral or any part thereof for any purpose not inconsistent with the terms or purposes hereof, the Loan Agreement or any other Loan Document; provided, however, that no Grantor shall in any event exercise such rights in any manner which could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each Grantor shall be entitled to receive and retain, and to utilize free and clear of the Lien hereof, any and all Distributions, if and to the extent made in accordance with the provisions of the Loan Agreement; provided, however, that any and all such Distributions consisting of rights or interests in the form of securities shall be immediately delivered to the Secured Party to hold as Pledged Collateral and shall, if received by any Grantor, be received in trust for the benefit of the Secured Party, be segregated from the other property or funds of such Grantor and be immediately (but in any event within five Business Days after receipt thereof) delivered to the Secured Party as Pledged Collateral in the same form as so received (with any necessary endorsement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Secured Party shall be deemed without further action to have granted to each Grantor all necessary consents relating to voting rights and shall, if necessary, upon written request of any Grantor and at the sole cost and expense of such Grantor, from time to time execute and deliver (or cause to be executed and delivered) to such Grantor all such instruments as such Grantor may reasonably request in order to permit such Grantor to exercise the voting and other rights which it is entitled to exercise pursuant to Section 5.01(a)(i) and to receive the Distributions which it is authorized to receive and retain pursuant to Section 5.01(a)(ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon the occurrence and during the continuance of any Event of Default and upon receipt by the Borrower of written notice from the Secured Party stating its intent to exercise its rights and remedies under Section 5.01:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All rights of each Grantor to exercise the voting and other consensual rights it would otherwise be entitled to exercise pursuant to Section 5.01(a)(i) shall immediately cease, and all such rights shall thereupon become vested in the Secured Party, which shall have the sole right to exercise such voting and other consensual rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) All rights of each Grantor to receive Distributions which it would otherwise be authorized to receive and retain pursuant to Section 5.01(a)(ii) shall immediately cease and all such rights shall thereupon become vested in the Secured Party, which shall have the sole right to receive and hold such Distributions as Pledged Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Grantor shall, at its sole cost and expense, from time to time execute and deliver to the Secured Party appropriate instruments as the Secured Party may request in order to permit the Secured Party to exercise the voting and other rights which it may be entitled to exercise pursuant to Section 5.01(c)(i) and to receive all Distributions which it may be entitled to receive under Section 5.01(c)(ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All Distributions which are received by any Grantor contrary to the provisions of Section 5.01(a)(ii) or Section 5.01(c) shall be received in trust for the benefit of the Secured Party, shall be segregated from other funds of such Grantor and shall immediately (but in any event within five Business Days after receipt thereof by such Grantor) be paid over to the Secured Party as Pledged Collateral in the same form as so received (with any necessary endorsement).

**Section 5.02** **Certain Agreements of Grantors**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the case of each Grantor which is an issuer of Securities Collateral, such Grantor agrees to be bound by the terms of this Agreement relating to the Securities Collateral issued by it and will comply with such terms insofar as such terms are applicable to it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the case of each Grantor which is a partner, shareholder or member, as the case may be, in a partnership, limited liability company or other entity, such Grantor hereby (i) consents to the extent required by the applicable Organizational Document to the pledge by each other Grantor, pursuant to the terms hereof, of the Pledged Securities in such partnership, limited liability company or other entity and, upon the occurrence and during the continuance of an Event of Default, to the transfer of such Pledged Securities to the Secured Party or its nominee and to the substitution of the Secured Party or its nominee as a substituted partner, shareholder or member in such partnership, limited liability company or other entity with all the rights, powers and duties of a general partner, limited partner, shareholder or member, as the case may be and (ii) irrevocably waives any and all provisions of the applicable Organizational Documents that conflict with the terms of this Agreement or prohibit, restrict, condition or otherwise affect the grant hereunder of any Lien on any of the Pledged Collateral or any enforcement action which may be taken in respect of any such Lien.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the case of each Grantor which is a partner, shareholder or member, as the case may be, in a partnership, limited liability company or other entity, such Grantor has caused each partnership or limited liability company included in the Pledged Collateral to amend its partnership agreement or limited liability company agreement to include the following provision: "Notwithstanding any other provision of this agreement (including any transfer restrictions set forth herein), in the event that an Event of Default shall have occurred under that certain Loan Agreement (as such Loan Agreement may be amended, modified, supplemented or restated from time to time) dated as of the date hereof (the "**Loan Agreement**") among Encore Medical, Inc., as borrower (the "**Borrower'**), certain subsidiaries of the Borrower, as Guarantors, and Merit Medical Systems, Inc., as Secured Party and Secured Party (together with its successors and assigns, in such capacity the "**Secured Party**"), (i) the lenders from time to time parties thereto and the agents party thereto and the Secured Party shall be entitled to exercise any of their respective rights and remedies with respect to equity interests in the Borrower, and (ii) each Member hereby irrevocably consents to the transfer of any equity interest and all related management and other rights in the Borrower to the Secured Party or any nominee of the Secured Party. The Secured Party is a third party beneficiary of this provision and this provision cannot be amended or repealed, without the consent of the Secured Party until the Loan Agreement has been Paid in Full as defined therein.

**Article VI** **<br> INTELLECTUAL PROPERTY COLLATERAL**

**Section 6.01** **Intellectual Property License**. For the purpose of enabling the Secured Party, during the continuance of an Event of Default, to exercise rights and remedies under ARTICLE VIII hereof at such time as the Secured Party shall be lawfully entitled to exercise such rights and remedies, and for no other purpose, each Grantor hereby grants to the Secured Party, to the extent of such Grantor's rights and effective only during the continuance of an Event of Default, an irrevocable, non-exclusive license, subject, in the case of Trademarks, to sufficient rights to quality control and inspection in favor of such Grantor to avoid the risk of invalidation of such Trademarks, to use and sublicense any of the Intellectual Property Collateral then owned by or licensed to such Grantor. Such license shall include access to all devices, products and media in which any of the Intellectual Property Collateral is embodied, embedded, recorded or stored and to all computer programs used for the compilation or printout hereof

**Section 6.02** **Dealing With Intellectual Property**. On a continuing basis, each Grantor shall, at its sole cost and expense:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) promptly following its becoming aware thereof, notify the Secured Party of any adverse determination in any proceeding or the institution of any proceeding in any federal, state or local court or administrative body or in the United States Patent and Trademark Office or the United States Copyright Office regarding such Grantor's claim of ownership in or right to use any of the material Intellectual Property material to the use and operation of the Pledged Collateral or Mortgaged Property, such Grantor's right to register such Intellectual Property Collateral or its right to keep and maintain such registration in full force and effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) maintain and protect Intellectual Property Collateral material to the use and operation of the Pledged Collateral or Mortgaged Property as presently used and operated and as contemplated by the Loan Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) not permit to lapse or become abandoned any Intellectual Property Collateral material to the use and operation of the Pledged Collateral or Mortgaged Property as presently used and operated and as contemplated by the Loan Agreement, and not settle or compromise any pending or future litigation or administrative proceeding with respect to such Intellectual Property Collateral, in each case except as shall be consistent with commercially reasonable business judgment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) upon such Grantor obtaining knowledge thereof, promptly notify the Secured Party in writing of any event which may be reasonably expected to materially and adversely affect the value or utility of any of the Intellectual Property Collateral or any portion thereof that is material to the use and operation of the Pledged Collateral or Mortgaged Property,the ability of such Grantor or the Secured Party to dispose of the Intellectual Property Collateral or any portion thereof or the rights and remedies of the Secured Party in relation thereto including a levy or threat of levy or any legal process against the Intellectual Property Collateral or any portion thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) not license the Intellectual Property Collateral other than licenses entered into by such Grantor in, or incidental to, the ordinary course of business, or amend or permit the amendment of any of the licenses in a manner that materially and adversely affects the right to receive payments thereunder, or in any manner that could materially impair the value of the Intellectual Property Collateral or the Lien on and security interest in the Intellectual Property Collateral created therein hereby, without the consent of the Secured Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) diligently keep adequate records respecting its Intellectual Property Collateral material to the use and operation of the Pledged Collateral or Mortgaged Property; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) furnish to the Secured Party from time to time upon the Secured Party's reasonable request therefor reasonably detailed statements and amended schedules further identifying and describing the Intellectual Property Collateral and such other materials evidencing or reports pertaining to the Intellectual Property Collateral as the Secured Party may from time to time reasonably request.

**Section 6.04** **Intellectual Property Litigation**. Unless there shall occur and be continuing any Event of Default, each Grantor shall have the right to commence and prosecute in its own name, as the party in interest, for its own benefit and at the sole cost and expense of the Grantors, such applications for protection of the Intellectual Property Collateral and suits, proceedings or other actions to prevent the infringement, misappropriation, counterfeiting, unfair competition, dilution, diminution in value or other damage as are necessary to protect the Intellectual Property Collateral. Upon the occurrence and during the continuance of any Event of Default, the Secured Party shall have the right but shall in no way be obligated to file applications for protection of the Intellectual Property Collateral and/or bring suit in the name of any Grantor, the Secured to enforce the Intellectual Property Collateral and any license thereunder. In the event of such suit, each Grantor shall, at the reasonable request of the Secured Party, do any and all lawful acts and execute any and all documents reasonably requested by the Secured Party in aid of such enforcement and the Grantors shall promptly reimburse and indemnify the Secured Party for all reasonable costs and expenses incurred by the Secured Party in the exercise of its rights under this Section 6.04 in accordance with Section 9.08. In the event that the Secured Party shall elect not to bring suit to enforce the Intellectual Property Collateral as permitted by this Section 6.04 and an Event of Default has occurred and is continuing, each Grantor agrees, at the reasonable request of the Secured Party, to take all commercially reasonable actions necessary, whether by suit, proceeding or other action, to prevent the infringement, misappropriation, counterfeiting, unfair competition, dilution, diminution in value of or other damage to any of the Intellectual Property Collateral by others and for that purpose agrees to diligently maintain any suit, proceeding or other action against any Person so infringing necessary to prevent such infringement.

**Article VII** **<br> RECEIVABLES**

**Section 7.01** **Dealing With Receivables**. Each Grantor shall keep and maintain at its own cost and expense complete records of each Receivable, including records of all payments received, all credits granted thereon, all merchandise returned and all other documentation relating thereto. Each Grantor shall, at such Grantor's sole cost and expense, upon the Secured Party's demand made at any time after the occurrence and during the continuance of any Event of Default, deliver copies of all tangible evidence of Receivables, including copies of all documents evidencing Receivables and any books and records relating thereto to the Secured Party or to its representatives. Each Grantor shall legend, at the request of the Secured Party and in form and manner satisfactory to the Secured Party, the Receivables and the other books, records and documents of such Grantor evidencing or pertaining to the Receivables with an appropriate reference to the fact that the Receivables have been assigned to the Secured Party and that the Secured Party has a security interest therein. Such Grantor will deliver to the Secured Party a copy of each material demand, notice or document received by it that questions or calls into doubt the validity or enforceability of more than 5.0% of the aggregate amount of the then outstanding Receivables.

**Section 7.02** **Modification of Receivables**. Other than in the ordinary course of business consistent with its past practice, such Grantor will not (i) grant any extension of the time of payment of any Receivable, (ii) compromise or settle any Receivable for less than the full amount thereof, (iii) release, wholly or partially, any Person liable for the payment of any Receivable, (iv) allow any credit or discount whatsoever on any Receivable or (v) amend, supplement or modify any Receivable in any manner that could adversely affect the value thereof

**Article VIII** **<br> REMEDIES**

**Section 8.01** **Remedies**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If any Event of Default shall have occurred and be continuing, the Secured Party may exercise, without any other notice to or demand upon any Grantor, in addition to the other rights and remedies provided for herein or in any other Loan Document or otherwise available to it, all the rights and remedies of a secured party upon default under the UCC (whether or not the UCC applies to the affected Pledged Collateral) and also may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) require each Grantor to, and each Grantor hereby agrees that it will at its expense and upon request of the Secured Party immediately, assemble the Pledged Collateral or any part thereof, as directed by the Secured Party and make it available to the Secured Party at a place and time to be designated by the Secured Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) without notice except as specified below, sell, resell, assign and deliver or grant a license to use or otherwise dispose of the Pledged Collateral or any part thereof, in one or more parcels at public or private sale, at any of the Secured Party's offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Secured Party may deem commercially reasonable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) occupy any premises owned or leased by any of the Grantors where the Pledged Collateral or any part thereof is assembled or located for a reasonable period in order to effectuate its rights and remedies hereunder or under law, without obligation to such Grantor in respect of such occupation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) exercise any and all rights and remedies of any of the Grantors under or in connection with the Pledged Collateral, or otherwise in respect of the Pledged Collateral, including without limitation, (A) any and all rights of such Grantor to demand or otherwise require payment of any amount under, or performance of any provision of, the Contracts, the Receivables, and the other Pledged Collateral, (B) withdraw, or cause or direct the withdrawal of, all funds with respect to the Deposit Accounts, (C) exercise all other rights and remedies with respect to the Receivables, and the other Pledged Collateral, including without limitation, those set forth in Section 9-607 of the UCC and (D) exercise any and all voting, consensual and other rights with respect to any Pledged Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Grantor agrees that, to the extent notice of sale shall be required by law, at least ten days' notice to such Grantor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification. At any sale of the Pledged Collateral, if permitted by applicable law, the Secured Party may be the purchaser, licensee, assignee or recipient of the Pledged Collateral or any part thereof and shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Pledged Collateral sold, assigned or licensed at such sale, to use and apply any of the Secured Obligations as a credit on account of the purchase price of the Pledged Collateral or any part thereof payable at such sale. To the extent permitted by applicable law, each Grantor waives all claims, damages and demands it may acquire against the Secured Party arising out of the exercise by it of any rights hereunder. Each Grantor hereby waives and releases to the fullest extent permitted by law any right or equity of redemption with respect to the Pledged Collateral, whether before or after sale hereunder, and all rights, if any, of marshalling the Pledged Collateral and any other security for the Secured Obligations or otherwise. The Secured Party shall not be liable for failure to collect or realize upon any or all of the Pledged Collateral or for any delay in so doing nor shall it be under any obligation to take any action with regard thereto. The Secured Party shall not be obligated to make any sale of Pledged Collateral regardless of notice of sale having been given. The Secured Party may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned. Each Grantor agrees that it would not be commercially unreasonable for the Secured Party to dispose of the Pledged Collateral or any portion thereof by utilizing internet sites that provide for the auction of assets of the type included in the Pledged Collateral or that have the reasonable capability of doing so, or that match buyers and sellers of assets. The Secured Party shall not be obligated to clean-up or otherwise prepare the Pledged Collateral for sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If any Event of Default shall have occurred and be continuing, all payments received by any Grantor in respect of the Pledged Collateral shall be received in trust for the benefit of the Secured Party, shall be segregated from other funds of such Grantor and shall be forthwith paid over the Secured Party in the same form as so received (with any necessary endorsement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If any Event of Default shall have occurred and be continuing, the Secured Party may, without notice to any Grantor except as required by law and at any time or from time to time, charge, set off and otherwise apply all or part of the Secured Obligations against any funds deposited with it or held by it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If any Event of Default shall have occurred and be continuing, upon the written demand of the Secured Party, each Grantor shall execute and deliver to the Secured Party an assignment or assignments of any or all of the Intellectual Property Collateral and such other documents and take such other actions as are necessary or appropriate to carry out the intent and purposes hereof. Within five Business Days of written notice thereafter from the Secured Party, each Grantor shall make available to the Secured Party, to the extent within such Grantor's power and authority, such personnel in such Grantor's employ on the date of the Event of Default as the Secured Party may reasonably designate to permit such Grantor to continue, directly or indirectly, to produce, advertise and sell the products and services sold by such Grantor under the Intellectual Property Collateral, and such persons shall be available to perform their prior functions on the Secured Party's behalf.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If the Secured Party shall determine to exercise its right to sell all or any of the Securities Collateral of any Grantor pursuant to this Section 8.01, each Grantor agrees that, upon request of the Secured Party, such Grantor will, at its own expense:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) provide the Secured Party with such information and projections as may be necessary or, in the opinion of the Secured Party, advisable to enable the Secured Party to effect the sale of such Securities Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) cause any registration, qualification under or compliance with any Federal or state securities law or laws to be effected with respect to all or any part of the Securities Collateral as soon as practicable and at the sole cost and expense of the Grantors. Each Grantor will cause such registration to be effected (and be kept effective) and will cause such qualification and compliance to be effected (and be kept effective) as may be so requested and as would permit or facilitate the sale and distribution of such Securities Collateral including registration under the Securities Act (or any similar statute then in effect), appropriate qualifications under applicable blue sky or other state securities laws and appropriate compliance with all other requirements of any Governmental Authority; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) do or cause to be done all such other acts and things as may be necessary to make such sale of such Securities Collateral or any part thereof valid and binding and in compliance with applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Secured Party is authorized, in connection with any sale of the Securities Collateral pursuant to this Section 8.01, to deliver or otherwise disclose to any prospective purchaser of the Securities Collateral: (i) any registration statement or prospectus, and all supplements and amendments thereto, prepared pursuant to Section 8.01(f); (ii) any information and projections provided to it pursuant to Section 8.01(f), and (iii) any other information in its possession relating to such Securities Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Each Grantor acknowledges the impossibility of ascertaining the amount of damages that would be suffered by the Secured Party by reason of the failure of such Grantor to perform any of the covenants contained in Section 8.01(f); and consequently, agrees that, if such Grantor shall fail to perform any of such covenants, it will pay, as liquidated damages and not as a penalty, an amount equal to the value of the Securities Collateral on the date the Secured Party demands compliance with Section 8.01(f).

**Section 8.02** **No Waiver and Cumulative Remedies**. The Secured Party shall not by any act (except by a written instrument pursuant to Section 9.06), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default. No failure on the part of the Secured Party to exercise, no course of dealing with respect to, and no delay on the part of the Secured Party in exercising, any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right, power, privilege or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right, power, privilege or remedy; nor shall the Secured Party be required to look first to, enforce or exhaust any other security, collateral or guaranties. All rights and remedies herein provided are cumulative and are not exclusive of any rights or remedies provided by law.

**Section 8.03** **Application of Proceeds**. Upon the exercise by the Secured Party of its remedies hereunder, any proceeds received by the Secured Party in respect of any realization upon any Pledged Collateral shall be applied, together with any other sums then held by the Secured Party pursuant to this Agreement, in accordance with the Loan Agreement. Each Grantor shall remain liable for any deficiency if the proceeds of any sale or other disposition of the Pledged Collateral are insufficient to pay the Secured Obligations and the fees and other charges of any attorneys employed by the Secured Party to collect such deficiency.

**Article IX** **<br> MISCELLANEOUS**

**Section 9.01** **Concerning Secured Party**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Appointment</u>. The Secured Party may exercise or refrain from exercising any rights (including making demands and giving notices) and take or refrain from taking any action (including the release or substitution of the Pledged Collateral), in accordance with this Agreement and the Loan Agreement. The Secured Party may employ agents and attorneys-in-fact in connection herewith and shall not be liable for the negligence of any such agents or attorneys-in-fact selected by it in good faith, but shall be liable for the gross negligence or willful misconduct of such agents and attorneys-in-fact.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Secured Party shall not have responsibility for (i) ascertaining or taking action whatsoever with regard to any Pledged Collateral (including matters relating to the Pledged Securities, whether or not the Secured Party has or is deemed to have knowledge of such matters) or (ii) taking any necessary steps to preserve rights against any Person with respect to any Pledged Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Reliance</u>. The Secured Party shall be entitled to rely upon any written notice, statement, certificate, order or other document or any telephone message believed by it to be genuine and correct and to have been signed, sent or made by the proper Person, and, with respect to all matters pertaining to this Agreement and its duties hereunder, upon advice of counsel selected by it.

**Section 9.02** **Performance By Secured Party**. If any Grantor shall fail to perform any covenants contained in this Agreement (including covenants to pay insurance, taxes and claims arising by operation of law in respect of the Pledged Collateral and to pay or perform any Grantor obligations under any Pledged Collateral) or if any representation or warranty on the part of any Grantor contained herein shall be breached, the Secured Party may (but shall not be obligated to) during the existence of an Event of Default, do the same or cause it to be done or remedy any such breach, and may make payments for such purpose; provided, however, that the Secured Party shall in no event be bound to inquire into the validity of any tax, Lien, imposition or other obligation which such Grantor fails to pay or perform as and when required hereby and which such Grantor does not contest in accordance with the provisions of the Loan Agreement. Any and all amounts so paid by the Secured Party shall be reimbursed by the Grantors in accordance with the provisions of Section 9.08. Neither the provisions of this Section 9.02 nor any action taken by the Secured Party pursuant to the provisions of this Section 9.02 shall prevent any such failure to observe any covenant contained in this Agreement nor any breach of representation or warranty from constituting an Event of Default.

**Section 9.03** **Power of Attorney**. Each Grantor hereby appoints the Secured Party its attorney-in-fact, with full power and authority in the place and stead of such Grantor and in the name of such Grantor, or otherwise, from time to time during the existence of an Event of Default in the Secured Party's discretion to take any action and to execute any instrument consistent with the terms of the Loan Agreement and the other Loan Documents which the Secured Party may deem necessary or advisable to accomplish the purposes hereof (but the Secured Party shall not be obligated to and neither the Secured Party nor any Secured Party shall have any liability to such Grantor or any third party for failure to so do or take action). The foregoing grant of authority is a power of attorney coupled with an interest and such appointment shall be irrevocable for the term hereof. Each Grantor hereby ratifies all that such attorney shall lawfully do or cause to be done by virtue hereof.

**Section 9.04** **Continuing Security Interest and Assignment**. This Agreement shall create a continuing security interest in the Pledged Collateral and shall (a) be binding upon the Grantors, their respective successors and assigns and (b) inure, together with the rights and remedies of the Secured Party hereunder, to the benefit of the Secured Party each of their respective permitted successors, transferees and assigns and their respective officers, directors, employees, affiliates, agents, advisors and controlling Persons; provided that, no Grantor shall assign or otherwise transfer any of its rights or obligations under this Agreement without the prior written consent of the Secured Party and any attempted assignment or transfer without such consent shall be null and void. Without limiting the generality of the foregoing clause (b), any Secured Party may assign or otherwise transfer any indebtedness held by it secured by this Agreement to any other Person, and such other Person shall thereupon become vested with all the benefits in respect thereof granted to such Secured Party, herein or otherwise, subject however, to the provisions of the Loan Agreement and, in the case of a Secured Party that is a party to a Secured Hedge Agreement or Secured Cash Management Agreement, such Secured Hedge Agreement or Secured Cash Management Agreement.

**Section 9.05** **Termination and Release**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At such time as the Loan and the other Secured Obligations shall have been paid in full (other than contingent indemnification obligations in which no claim has been made or is reasonably foreseeable) and the Borrower no longer has any continuing obligations under the Right of First Offer Agreement, the Pledged Collateral shall be released from the Liens created hereby, and this Agreement and all obligations (other than those expressly stated to survive such termination) of the Secured Party and each Grantor hereunder shall terminate, all without delivery of any instrument or any further action by any party, and all rights to the Pledged Collateral shall revert to the Grantors. At the request and sole expense of any Grantor following any such termination, the Secured Party shall deliver to such Grantor any Pledged Collateral held by the Secured Party hereunder, and execute and deliver to such Grantor such documents as such Grantor shall reasonably request to evidence such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any of the Pledged Collateral shall be sold, transferred or otherwise disposed of by any Grantor in a transaction permitted by the Loan Agreement, then the Lien created pursuant to this Agreement in such Pledged Collateral shall be released, and the Secured Party, at the request and sole expense of such Grantor, shall execute and deliver to such Grantor all releases and other documents necessary or advisable for the release of the Liens created hereby on such Pledged Collateral; provided that the Borrower shall provide to the Secured Party evidence of such transaction's compliance with the Loan Agreement and the other Loan Documents as the Secured Party shall reasonably request. At the request and sole expense of the Borrower, a Grantor shall be released from its obligations hereunder in the event that all the Equity Interests of such Grantor are sold, transferred or otherwise disposed of in a transaction permitted by the Loan Agreement; provided that the Borrower shall have delivered to the Secured Party, at least ten Business Days (or such shorter period reasonably acceptable to the Secured Party) prior to the date of the proposed release, a written request for release identifying the relevant Grantor and the terms of the sale or other disposition in reasonable detail, including the price thereof and any expenses in connection therewith, together with a certification by the Borrower stating that such transaction is in compliance with the Loan Agreement and the other Loan Documents.

**Section 9.06** **Modification in Writing**. None of the terms or provisions of this Agreement may be amended, modified, supplemented, terminated or waived, and no consent to any departure by any Grantor therefrom shall be effective, except by a written instrument signed by the Secured Party in accordance with the terms of the Loan Agreement. Any amendment, modification or supplement of any provision hereof, any waiver of any provision hereof and any consent to any departure by any Grantor from the terms of any provision hereof in each case shall be effective only in the specific instance and for the specific purpose for which made or given. This Agreement shall be construed as a separate agreement with respect to each Grantor and may be amended, modified, supplemented, terminated or waived with respect to any Grantor without the approval of any other Grantor and without affecting the obligations of any other Grantor hereunder.

**Section 9.07** **Notices**. Unless otherwise provided herein, any notice or other communication required or permitted to be given under this Agreement shall be in writing and shall be given in the manner and become effective as set forth in the Loan Agreement, and, as to any Grantor, addressed to it at the address of such Grantor set forth in Schedule 1 I hereof and as to the Secured Party, addressed to it at the address set forth in the Loan Agreement, or in each case at such other address as shall be designated by such party in a written notice to the other party.

**Section 9.08** **Indemnity and Expenses**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Grantor hereby agrees to indemnify and hold harmless the Secured Party (and any sub-agent thereof), and each Related Party of any of the Lender (each such Person being called an "**Indemnitee**") from any losses, damages, liabilities, claims and related expenses (including the fees and expenses of any counsel for any Indemnitee), and shall indemnify and hold harmless each Indemnitee from all fees, expenses and time charges for attorneys who are employees of any Indemnitee, incurred by any Indemnitee or asserted against any Indemnitee by any Person (including any Grantor or any other Loan Party) other than such Indemnitee and its Related Parties arising out of, in connection with or resulting from this Agreement (including, without limitation, enforcement of this Agreement) or any failure of any Secured Obligations to be the legal, valid, and binding obligations of any Loan Party enforceable against such Loan Party in accordance with their terms, whether brought by a third party or by such Grantor or any other Loan Party, and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (i) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee, (ii) result from a claim brought by any Grantor or any other Loan Party against an Indemnitee for breach in bad faith of such Indemnitee's obligations hereunder or under any other Loan Document, if such Grantor or such other Loan Party has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction or (iii) result from a claim not involving an act or omission of any Loan Party or any of its subsidiaries and that is brought by an Indemnitee against another Indemnitee (other than against the Secured Party brought by one Indemnitee against another Indemnitee acting in a different capacity or role with respect to such issuing bank as opposed to an advising bank, confirming bank, negotiating bank or transferring bank).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the fullest extent permitted by applicable law, each Grantor hereby agrees not to assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Extension of Credit or the use of proceeds thereof. No Indemnitee shall be liable for any damages arising from the use of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby by unintended recipients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Grantor agrees to pay or reimburse the Secured Party for all its costs and expenses incurred in collecting against such Grantor its Secured Obligations or otherwise protecting, enforcing or preserving any rights or remedies under this Agreement and the other Loan Documents to which such Grantor is a party, including the fees and other charges of counsel (including the allocated fees and expenses of internal counsel) to the Secured Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All amounts due under this Section 9.08 shall be payable not later than 20 days after demand therefor, shall constitute Secured Obligations and shall bear interest until paid at a rate per annum equal to the highest rate per annum at which interest would then be payable on any past due Loan under the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Without prejudice to the survival of any other agreement of any Grantor under this Agreement or any other Loan Documents, the agreements and obligations of each Grantor contained in this Section 9.08 shall survive termination of the Loan Documents and payment in full of the Obligations and all other amounts payable under this Agreement.

**Section 9.09** **Governing Law, Consent to Jurisdiction and Waiver of Jury Trial**. This Agreement and the other Loan Documents and any claim, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Agreement or any other Loan Document (except, as to any other Loan Document, as expressly set forth therein) and the transactions contemplated hereby and thereby shall be governed by, and construed in accordance with, the laws of the State of Utah. The other provisions of Sections 8.09 and 8.10 of the Loan Agreement are incorporated herein, mutatis mutandis, as if a part hereof.

**Section 9.10** **Severability of Provisions**. Any provision hereof which is invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without invalidating the remaining provisions hereof or affecting the validity, legality or enforceability of such provision in any other jurisdiction.

**Section 9.11** **Counterparts; Integration; Effectiveness**. This Agreement and any amendments, waivers, consents or supplements hereto may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all taken together shall constitute a single contract. This Agreement and the other Loan Documents, and any separate letter agreements with respect to fees payable to the Secured Party, constitute the entire contract among the parties with respect to the subject matter hereof and supersede all previous agreements and understandings, oral or written, with respect thereto. Except as provided in Article III of the Loan Agreement, this Agreement shall become effective when it shall have been executed by the Secured Party and when the Secured Party shall have received counterparts hereof signed by each of the other parties hereto. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or in electronic (i.e., "pdf' or "tif') format shall be effective as delivery of a manually executed counterpart of this Agreement. The words "execution," "signed," "signature," and words of similar import in this Agreement shall be deemed to include electronic or digital signatures or electronic records, each of which shall be of the same effect, validity, and enforceability as manually executed signatures or a paper-based recordkeeping system, as the case may be, to the extent and as provided for under applicable law, including the Electronic Signatures in Global and National Commerce Act of 2000 (15 U.S.C. §§ 7001 to 7031), the Uniform Electronic Transactions Act (UETA), or any state law based on the UETA, including the New York Electronic Signatures and Records Act (N.Y. Tech. §§ 301 to 309).

**Section 9.12** **No Release**. Nothing set forth in this Agreement or any other Loan Document, nor the exercise by the Secured Party of any of the rights or remedies hereunder, shall relieve any Grantor from the performance of any term, covenant, condition or agreement on such Grantor's part to be performed or observed in respect of any of the Pledged Collateral or from any liability to any Person in respect of any of the Pledged Collateral or shall impose any obligation on the Secured Party to perform or observe any such term, covenant, condition or agreement on such Grantor's part to be so performed or observed or shall impose any liability on the Secured Party for any act or omission on the part of such Grantor relating thereto or for any breach of any representation or warranty on the part of such Grantor contained in this Agreement, the Loan Agreement or the other Loan Documents, or in respect of the Pledged Collateral or made in connection herewith or therewith. Anything herein to the contrary notwithstanding, the Secured Party shall nothave any obligation or liability under any contracts, agreements and other documents included in the Pledged Collateral by reason of this Agreement, nor shall the Secured Party be obligated to perform any of the obligations or duties of any Grantor thereunder or to take any action to collect or enforce any such contract, agreement or other document included in the Pledged Collateral. The obligations of each Grantor contained in this Section 9.12 shall survive the termination hereof and the discharge of such Grantor's other obligations under this Agreement, the Loan Agreement and the other Loan Documents.

**Section 9.13** **Obligations Absolute**. Each Grantor hereby waives demand, notice, protest, notice of acceptance of this Agreement, notice of loans made, credit extended, Pledged Collateral received or delivered or other action taken in reliance hereon and all other demands and notices of any description. All obligations of each Grantor hereunder shall be absolute and unconditional irrespective of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any illegality or lack of validity or enforceability of any Secured Obligation or any Loan Document or any related agreement or instrument;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any change in the time, place or manner of payment of, or in any other term of, the Secured Obligations or any other obligation of any Loan Party under any Loan Document, or any rescission, waiver, amendment or other modification of any Loan Document or any other agreement, including any increase in the Secured Obligations resulting from any extension of additional credit or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any taking, exchange, substitution, release, impairment or non-perfection of any Pledged Collateral, or any taking, release, impairment, amendment, waiver or other modification of any guaranty, for the Secured Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any manner of sale, disposition or application of proceeds of any Pledged Collateral or any other collateral or other assets to all or part of the Secured Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any default, failure or delay, willful or otherwise, in the performance of the Secured Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any change, restructuring or termination of the corporate structure, ownership or existence of any Loan Party or any of its Subsidiaries or any insolvency, bankruptcy, reorganization or other similar proceeding affecting the Borrower or its assets or any resulting release or discharge of any Secured Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any failure of any Secured Party to disclose to any Loan Party any information relating to the business, condition (financial or otherwise), operations, performance, properties or prospects of any other Loan Party now or hereafter known to such Secured Party; each Grantor waiving any duty of the Secured Parties to disclose such information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the failure of any other Person to execute or deliver this Agreement, any Joinder Agreement or any other agreement or the release or reduction of liability of any Grantor or other grantor or surety with respect to the Secured Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the failure of any Secured Party to assert any claim or demand or to exercise or enforce any right or remedy under the provisions of any Loan Document or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any defense, set-off or counterclaim (other than a defense of payment or performance) that may at any time be available to, or be asserted by, the Borrower against any Secured Party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) any other circumstance (including, without limitation, any statute of limitations) or manner of administering the Loans or any existence of or reliance on any representation by any Secured Party that might vary the risk of any Grantor or otherwise operate as a defense available to, or a legal or equitable discharge of, any Loan Party or any other guarantor or surety.

[*SIGNATURE PAGE FOLLOWS*]

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

---

| | |
|:---|:---|
| **Encore Medical, Inc.** | **Encore Medical, Inc.** |
| By | /s/ Michael Corcoran |
| Name: | Michael Corcoran |
| Title: | President and CEO |
| **Merit Medical Systems, Inc.** | **Merit Medical Systems, Inc.** |
| By | |
| Name: | |
| Title: | |

---

**EXHIBIT A**

**FORM OF JOINDER AGREEMENT**

THIS JOINDER AGREEMENT (the "**Joinder Agreement**"), dated as of DATE] is made by [JOINING GRANTOR], a [STATE OF ORGANIZATION] [ENTITY TYPE] (the "**Joining Grantor**"), and delivered to Merit Medical Systems, Inc. (the "**Secured Party**") under that certain Security Agreement (as amended, amended and restated, supplemented or otherwise modified from time to time, the "**Security Agreement**"; capitalized terms used but not otherwise defined herein shall have the meanings assigned to such terms in the Security Agreement), dated as of November 6, 2023 made by and among Encore Medical, Inc., a Delaware corporation (the "**Borrower**"), and the Grantors party thereto, in favor of the Secured Party.

WHEREAS, the Joining Grantor is a Subsidiary [of the Borrower] and required by the terms of the Loan Agreement to become a Guarantor (as defined in the Loan Agreement) and be joined as a party to the Security Agreement as a Grantor;

WHEREAS, this Joinder Agreement supplements the Security Agreement and is delivered by the Joining Grantor pursuant to Section 3.05 of the Security Agreement; and

WHEREAS, the Joining Grantor will materially benefit directly and indirectly from the Loan made available and to be made available to the Borrower by the Lender under the Loan Agreement;

NOW, THEREFORE, the Joining Grantor hereby agrees as follows with the Secured Party:

1. **Joinder**. The Joining Grantor hereby irrevocably, absolutely and unconditionally becomes a party to the Security Agreement as a Grantor and agrees to be bound by all the terms, conditions, covenants, obligations, liabilities and undertakings of each Grantor or to which each Grantor is subject thereunder, all with the same force and effect as if the Joining Grantor were a signatory to the Security Agreement. Without limiting the generality of the foregoing, as collateral security for the payment and performance in full of all the Secured Obligations, the Joining Grantor hereby pledges to the Secured, and grants to the Secured Party a Lien on and security interest in and to, all of its right, title and interest in, to and under the Pledged Collateral owned by it, wherever located, and whether now existing or hereafter arising or acquired from time to time and expressly assumes all obligations and liabilities of a Grantor thereunder.

2. **Affirmations**. The Joining Grantor hereby makes each of the representations and warranties and agrees to each of the covenants applicable to the Grantors contained in the Security Agreement. The Joining Grantor also represents and warrants to the Secured Party that (i) it has the corporate power and authority, and the legal right, to make, deliver and perform this Joinder Agreement and has taken all necessary corporate action to authorize the execution, delivery and performance of this Joinder Agreement; (ii) no consent or authorization of, filing with, notice to or other act by or in respect of, any Governmental Authority or any other Person that has not been obtained, made or completed is required in connection with the execution, delivery and performance, validity or enforceability of this Joinder Agreement; (iii) this Joinder Agreement has been duly executed and delivered on behalf of the Joining Grantor; and (iv) this Joinder Agreement constitutes a legal, valid and binding obligation of the Joining Grantor enforceable against such Joining Grantor in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors' rights generally, general equitable principles (whether considered in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing.

3. **Supplemental Schedules**. Attached to this Joinder Agreement are duly completed schedules (the "**Supplemental Schedules**") supplementing the respective Schedules to the Security Agreement. The Joining Grantor represents and warrants that the information contained on each of the Supplemental Schedules with respect to such Joining Grantor and its properties is true, complete and accurate as of the date hereof. Such Supplemental Schedules shall be deemed to be part of the Security Agreement.

4. **Severability**. The provisions of this Joinder Agreement are independent of and separable from each other. If any provision hereof shall for any reason be held invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of any other provision hereof, but this Joinder Agreement shall be construed as if such invalid or unenforceable provision had never been contained herein.

5. **Counterparts**. This Joinder Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page to this Joinder Agreement by facsimile or in electronic (i.e., "pdf' or "tif') format shall be effective as delivery of a manually executed counterpart of this Joinder Agreement.

6. **Delivery**. The Joining Grantor hereby irrevocably waives notice of acceptance of this Joinder Agreement and acknowledges that the Secured Obligations are incurred, and credit extensions under the Loan Agreement and the other Loan Documents made and maintained, in reliance on this Joinder Agreement and the Joining Grantor's joinder as a party to the Security Agreement as herein provided.

7. **Governing Law; Venue; Waiver of Jury Trial**. This Joinder Agreement and the other Loan Documents and any claim, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Joinder Agreement or any other Loan Document (except, as to any other Loan Document, as expressly set forth therein) and the transactions contemplated hereby and thereby shall be governed by and construed in accordance with the laws of Utah. The provisions of Section 9.09 of the Security Agreement are hereby incorporated by reference as if fully set forth herein.

[*Signature page follows*.]

IN WITNESS WHEREOF, the parties hereto have caused this Joinder Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

---

| |
|:---|
| [NAME OF JOINING GRANTOR] |
| By: |
| Name: |
| Title: |

---

Address for Notices:   <br>  <br> 

---

| |
|:---|
| AGREED TO AND ACCEPTED: |
| Merit Medical Systems, Inc., as Secured Party |
| By: |
| Name: |
| Title: |

---

Address for Notices:   <br>  <br> 

[Schedules to be attached]

**EXHIBIT B**

**INTELLECTUAL PROPERTY SECURITY AGREEMENT**

[To be inserted]

**INTELLECTUAL PROPERTY SECURITY AGREEMENT**

This INTELLECTUAL PROPERTY SECURITY AGREEMENT ("**IP Security Agreement**"), dated as of November 6, 2023, is made by and between ENCORE MEDICAL, INC., a Minnesota corporation (the "**Grantor**") in favor of MERIT MEDICAL SYSTEMS INC. (the "**Lender**"), a Utah corporation, as the "**Secured Party**".

WHEREAS, the Grantor has entered into a Loan Agreement dated as of November 6, 2023 (the "**Loan Agreement**"), with the Lender.

WHEREAS, as a condition precedent to the making of the loan by the Lender under the Loan Agreement, Grantor has executed and delivered to the Lender that certain Security Agreement dated as of November 6, 2023, made by and between the Grantor and the Lender (the "**Security Agreement**").

WHEREAS, under the terms of the Security Agreement, the Grantor has granted to the Lender a security interest in, among other property, certain intellectual property of the Grantor, and has agreed to execute and deliver this IP Security Agreement for recording with governmental authorities, including, but not limited to, the United States Patent and Trademark Office and the United States Copyright Office.

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Grant of Security**. Grantor hereby pledges and grants to the Lender a security interest in and to all of the right, title, and interest of Grantor in, all Grantor's rights, whether now own and/or existing or hereafter created, arising and/or acquired to the following (the "**IP Collateral**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all patents and patent applications of the Grantor, including those set forth in Schedule 1 hereto, and all reissues, divisions, continuations, continuations-in-part, renewals, divisionals, extensions, reexaminations and all inventions (whether or not patentable) to any of the foregoing, and all patent licenses of the Grantor (the "**Patents**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all trademarks, service marks, logos, designs, slogans, trade names, logos, and trade dress of the Grantor, whether registered or unregistered, and all applications of any of the foregoing, together with the goodwill connected with the use thereof and symbolized thereby, all extensions and renewals thereof, and all trademark licenses of the Grantor (the "**Trademarks**"), excluding only United States intent-to-use trademark applications to the extent that, and solely during the period in which, the grant, attachment, or enforcement of a security interest therein would, under applicable federal law, impair the registrability of such applications or the validity or enforceability of registrations issuing from such applications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all copyright rights, copyright applications, copyright registrations in each work of authorship and derivative work thereof of the Grantor, whether published or unpublished, registered or unregistered, now or hereafter existing, licensed, created, acquired or held, and copyright registrations and applications exclusively licensed to Grantor, all extensions and renewals thereof, (the "**Copyrights**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all domain names, including Internet domain names, and social media channels;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all trade secrets or other proprietary or confidential information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all rights with respect to software, documentation, technical information, know-how, data and databases, processes, models, drawings, plans, specifications, and designs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all rights of any kind whatsoever of Grantor accruing under any of the foregoing provided by applicable law of any jurisdiction, by international treaties and conventions, and otherwise throughout the world;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any and all royalties, fees, income, payments, receivables, accounts, general intangibles, deposit accounts, instruments, and other proceeds now or hereafter due or payable with respect to any and all of the foregoing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any and all claims and causes of action with respect to any of the foregoing, whether occurring before, on, or after the date hereof, including all rights to and claims for damages, restitution, and injunctive and other legal and equitable relief for past, present, and future infringement, dilution, misappropriation, dilution, violation, misuse, breach, or default, with the right, but no obligation, to sue for such legal and equitable relief and to collect, or otherwise recover, any such damages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Recordation**. Grantor authorizes Lender to file and record a UCC financing statement for any IP Collateral in such offices as Lender reasonably deems advisable to perfect its security interest and record a copy of this IP Security Agreement with the United States Patent and Trademark Office and the United States Copyright Office, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **After-Acquired IP Collateral; Further Assurances**. Grantor will notify Lender of each acquisition following the Effective Date in registered or applied for IP Collateral, along with addenda to the applicable Schedule, listing the acquired interests. Grantor hereby confirms and agrees that any and all after acquired IP Collateral shall immediately and automatically upon any Grantor's acquisition of any right, title and interest therein become part of the IP Collateral hereunder. Grantor agrees to execute any further documents, and to take any further actions, reasonably requested by Lender to evidence, maintain the first-priority of or perfect the security interest granted herein, or to effectuate the rights granted to Lender under the Security Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Loan Documents**. This IP Security Agreement has been entered into pursuant to and in conjunction with the Security Agreement, which is hereby incorporated by reference. The provisions of the Security Agreement shall supersede and control over any conflicting or inconsistent provision herein. The rights and remedies of Lender with respect to the IP Collateral are as provided by the Loan Agreement, the Security Agreement, and related documents, and nothing in this IP Security Agreement shall be deemed to limit such rights and remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Execution in Counterparts**. This IP Security Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page to this IP Security Agreement in electronic format shall be effective as delivery of a manually executed counterpart of this IP Security Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Successors and Assigns**. This IP Security Agreement will be binding on and shall inure to the benefit of the parties hereto and their respective successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Governing Law**. This IP Security Agreement and any claim, controversy, dispute, or cause of action (whether in contract or tort or otherwise) based upon, arising out of, or relating to this IP Security Agreement and the transactions contemplated hereby and thereby shall be governed by, and construed in accordance with, the laws of the United States and the State of Utah, without giving effect to any choice or conflict of law provision or rule (whether of the State of Utah or any other jurisdiction).

[*SIGNATURE PAGE FOLLOWS*]

IN WITNESS WHEREOF the Grantor has caused this IP Security Agreement to be duly executed and delivered by its officer thereunto duly authorized as of the date first above written.

---

| |
|:---|
| ENCORE MEDICAL, INC. |
| By: |
| Name: |
| Title: |

---

Address for Notices:   <br>  <br> 

AGREED TO AND ACCEPTED:

---

| |
|:---|
| MERIT MEDICAL SYSTEMS INC. |
| By: |
| Name: |
| Title: |

---

Address for Notices:   <br>  <br> 

[ACKNOWLEDGMENT]

STATE OF MINNESOTA) )SS. <br> COUNTY OF DAKOTA)

On the 6th day of November, 2023, before me personally appeared _______________________, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the foregoing instrument, who, being duly sworn, did depose and say that he/she/they executed the same [in his/her/their authorized capacity as the [SIGNATORY TITLE] of Encore Medical, Inc., the corporation described, and acknowledged the instrument to be [his/her/their] free act and deed/the free act and deed of Encore Medical, Inc. for the uses and purposes mentioned in the instrument.

My Commission Expires:  

 <br> Notary Public <br> Printed Name:  

**SCHEDULE 1 TO EXHIBIT B**

**PATENTS**

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Patent or Application No.** | &nbsp;&nbsp;**Country** | &nbsp;&nbsp;**Filing Date** | &nbsp;&nbsp;**Title of Patent and First Named Inventor** |
| &nbsp;&nbsp;7582104 | &nbsp;&nbsp;US | &nbsp;&nbsp;09/1/2009 | &nbsp;&nbsp;Daisy Design for Occlusion Device<br> Michael P. Corcoran, Joseph A. Marino |
| &nbsp;&nbsp;8366741 | &nbsp;&nbsp;US | &nbsp;&nbsp;02/05/2013 | &nbsp;&nbsp;Occlusion Device with Centering Arm<br> Michael P. Corcoran, Joseph A. Marino, Dara Chin |
| &nbsp;&nbsp;11771411 | &nbsp;&nbsp;US | &nbsp;&nbsp;12/22/2021 | &nbsp;&nbsp;PFO Device<br> Michael P. Corcoran, Joseph A. Marino, Englong Tan |
| &nbsp;&nbsp;PCT/U52022/053818 | &nbsp;&nbsp;WO | &nbsp;&nbsp;12/22/2022 | &nbsp;&nbsp;PFO Device<br> Michael P. Corcoran, Joseph A. Marino, Englong Tan |
| &nbsp;&nbsp;18/353,233 | &nbsp;&nbsp;US | &nbsp;&nbsp;07/17/2023 | &nbsp;&nbsp;PFO Device<br> Michael P. Corcoran, Joseph A. Marino, Englong Tan |
| &nbsp;&nbsp;7658748 | &nbsp;&nbsp;US | &nbsp;&nbsp;02/09/2010 | &nbsp;&nbsp;Right Retrieval Mechanism<br> Michael P. Corcoran, Joseph A. Marino |
| &nbsp;&nbsp;6379368 | &nbsp;&nbsp;US | &nbsp;&nbsp;04/20/2002 | &nbsp;&nbsp;Occlusion Device with Non-Thrombogenic Properties<br> Michael P. Corcoran, Joseph A. Marino, Peter M. Buonomo |
| &nbsp;&nbsp;6206907 | &nbsp;&nbsp;US | &nbsp;&nbsp;03/27/2001 | &nbsp;&nbsp;Occlusion Device with Stranded Wire Support<br> Michael P. Corcoran, Joseph A. Marino, Peter M. Buonomo |
| &nbsp;&nbsp;7691115 | &nbsp;&nbsp;US | &nbsp;&nbsp;06/19/2006 | &nbsp;&nbsp;Occlusion Device with Flexible Fabric Connector<br> Michael P. Corcoran, Joseph A. Marino |
| &nbsp;&nbsp;7115135 | &nbsp;&nbsp;US | &nbsp;&nbsp;01/22/2003 | &nbsp;&nbsp;Occlusion Device Having Five or More Arms<br> Michael P. Corcoran, Joseph A. Marino |
| &nbsp;&nbsp;7749238 | &nbsp;&nbsp;US | &nbsp;&nbsp;06/19/2006 | &nbsp;&nbsp;Occlusion Device with Flexible Polymeric Connector<br> Michael P. Corcoran, Joseph A. Marino |

---

**Schedule 1**

**<u>GUARANTOR INFORMATION</u>**

**None Applicable.**

**Schedule 2**

**<u>PLEDGED DEBT AND SECURITIES</u>**

**None Applicable.**

**Schedule 3**

**<u>FILING OFFICE</u>**

**Office of the Minnesota Secretary of State Uniformed Commercial Code Division.**

**Schedule 4**

**<u>TANGIBLE CHATTLE PAPER</u>**

**None Applicable.**

**Schedule 5**

**<u>GRANTOR INFORMATION</u>**

Encore Medical, Inc.

2975 Lone Oak Drive

Suite 140

Eagan, MN 55121

**Schedule 6**

**<u>INTELLECTUAL PROPERTY RIGHTS</u>**

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Patent or Application No.** | &nbsp;&nbsp;**Country** | &nbsp;&nbsp;**Filing Date** | &nbsp;&nbsp;**Title of Patent and First Named Inventor** |
| &nbsp;&nbsp;7582104 | &nbsp;&nbsp;US | &nbsp;&nbsp;09/1/2009 | &nbsp;&nbsp;Daisy Design for Occlusion Device<br> Michael P. Corcoran, Joseph A. Marino |
| &nbsp;&nbsp;8366741 | &nbsp;&nbsp;US | &nbsp;&nbsp;02/05/2013 | &nbsp;&nbsp;Occlusion Device with Centering Arm<br> Michael P. Corcoran, Joseph A. Marino, Dara Chin |
| &nbsp;&nbsp;11771411 | &nbsp;&nbsp;US | &nbsp;&nbsp;12/22/2021 | &nbsp;&nbsp;PFO Device<br> Michael P. Corcoran, Joseph A. Marino, Englong Tan |
| &nbsp;&nbsp;PCT/US2022/053818 | &nbsp;&nbsp;WO | &nbsp;&nbsp;12/22/2022 | &nbsp;&nbsp;PFO Device<br> Michael P. Corcoran, Joseph A. Marino, Englong Tan |
| &nbsp;&nbsp;18/353,233 | &nbsp;&nbsp;US | &nbsp;&nbsp;07/17/2023 | &nbsp;&nbsp;PFO Device<br> Michael P. Corcoran, Joseph A. Marino, Englong Tan |
| &nbsp;&nbsp;7658748 | &nbsp;&nbsp;US | &nbsp;&nbsp;02/09/2010 | &nbsp;&nbsp;Right Retrieval Mechanism<br> Michael P. Corcoran, Joseph A. Marino |
| &nbsp;&nbsp;6379368 | &nbsp;&nbsp;US | &nbsp;&nbsp;04/20/2002 | &nbsp;&nbsp;Occlusion Device with Non-Thrombogenic Properties<br> Michael P. Corcoran. Joseph A. Marino, Peter M. Buonomo |
| &nbsp;&nbsp;6206907 | &nbsp;&nbsp;US | &nbsp;&nbsp;03/27/2001 | &nbsp;&nbsp;Occlusion Device with Stranded Wire Support<br> Michael P. Corcoran, Joseph A. Marino, Peter M. Buonomo |
| &nbsp;&nbsp;7691115 | &nbsp;&nbsp;US | &nbsp;&nbsp;06/19/2006 | &nbsp;&nbsp;Occlusion Device with Flexible Fabric Connector<br> Michael P. Corcoran, Joseph A. Marino |
| &nbsp;&nbsp;7115135 | &nbsp;&nbsp;US | &nbsp;&nbsp;01/22/2003 | &nbsp;&nbsp;Occlusion Device Having Five or More Arms<br> Michael P. Corcoran, Joseph A. Marino |
| &nbsp;&nbsp;7749238 | &nbsp;&nbsp;US | &nbsp;&nbsp;06/19/2006 | &nbsp;&nbsp;Occlusion Device with Flexible Polymeric Connector<br> Michael P. Corcoran, Joseph A. Marino |

---

**Schedule 7**

**<u>DEPOSIT ACCOUNTS</u>**

List of all Deposit Accounts opened for Grantor:

**Business Checking account**

**Bank**: MinnWest Bank, N.A.

**Acct**. #: 1110149569

**RTN**: 091915845

List of Deposit Accounts in which Secured Party has first priority lien:

**Business Checking account**

**Bank**: MinnWest Bank, N.A.

**Acct**. #: 1110149569

**RTN**: 091915845

**Schedule 9**

**<u>COMMERCIAL TORT CLAIMS</u>**

**None applicable.**

**<u>SECURED PROMISSORY NOTE</u>**

---

| | |
|:---|:---|
| **$1000000.00** | **Salt Lake City, Utah** |
|  | **November 6, 2023** |

---

FOR VALUE RECEIVED, the undersigned, Encore Medical, Inc., a Minnesota corporation (the "**Borrower**"), promises to pay to the order of Merit Medical Systems, Inc., a Utah corporation, and its successors and assigns (the "**Lender**"), at 1600 West Merit Parkway, South Jordan, Utah 84095, or at such other place as may be designated in writing by the Lender, the principal sum of ONE MILLION DOLLARS ($1,000,000) or such sum as may be advanced and outstanding from time to time, in lawful money of the United States of America and in immediately available funds, on the dates and in the principal amounts provided in the Loan Agreement (as defined below), and to pay interest on the unpaid principal amount owing hereunder, at the rates and on the dates provided in the Loan Agreement.

This is the Promissory Note (the "**Promissory Note**") referred to in that certain Loan Agreement dated as of the date hereof between the Borrower and the Lender (as amended, modified, supplemented or restated from time to time, the "**Loan Agreement**") pursuant to which the Lender agreed to make a loan (the "**Loan**") to the Borrower. Capitalized terms used herein, and not otherwise defined herein, have their respective meanings given them in the Loan Agreement.

Reference is made to the Loan Agreement for provisions for the prepayment and repayment hereof and the acceleration of the maturity hereof, as well as the obligation of the Borrower to pay all costs of collection. This Promissory Note is entitled to the benefits and security of the Loan Documents.

If: (a) the Borrower shall fail to pay when due any sums payable hereunder, subject to any applicable notice and cure periods as set forth in the Loan Agreement; or (b) any Event of Default occurs and is continuing under the Loan Agreement or any other Loan Document; THEN the Lender may, at its sole option, declare all sums owing under this Promissory Note immediately due and payable; provided, however, that if any document related to this Promissory Note provides for automatic acceleration of payment of sums owing hereunder, all sums owing hereunder shall be automatically due and payable in accordance with the terms of such document.

If any attorney is engaged by the Lender to enforce or defend any provision of this Promissory Note or any other Loan Document, or as a consequence of any Event of Default, with or without the filing of any legal action or proceeding, then the Borrower shall pay to the Lender immediately upon demand all reasonable attorneys' fees actually incurred, without reference to any statutory or other presumptions, and all costs incurred by the Lender in connection therewith, together with interest thereon from the date of such demand until paid at the rate of interest applicable to the principal balance owing hereunder as if such unpaid attorneys' fees and costs had been added to the principal.

Notwithstanding anything to the contrary contained herein or in the Loan Documents, the Borrower hereby waives: presentment; demand; notice of dishonor; notice of default or delinquency; notice of acceleration; notice of protest and nonpayment; notice of costs, expenses or losses and interest thereon; notice of late charges; and diligence in taking any action to collect any sums owing under this Promissory Note or in proceeding against any of the rights or interests in or to properties securing payment of this Promissory Note.

Time is of the essence with respect to every provision hereof.

This Promissory Note shall be governed by, and construed and enforced in accordance with the laws of the State of Utah, except to the extent preempted by federal laws. The Borrower and all persons and entities in any manner obligated to the Lender under this Promissory Note consent to the jurisdiction of any federal or state court within the State of Utah having proper venue and also consent to service of process by any means authorized by the laws of the State of Utah or federal law.

All notices or other communications required or permitted to be given pursuant to this Promissory Note shall be given to the Borrower or the Lender at the address and in the manner provided for in the Loan Agreement.

No previous waiver and no failure or delay by the Lender in acting with respect to the terms of this Promissory Note or any other Loan Document shall constitute a waiver of any breach, default, or failure of condition under this Promissory Note, any other Loan Document or the obligations secured thereby. A waiver of any term of this Promissory Note, any other Loan Document or of any of the obligations secured thereby must be made in writing and shall be limited to the express written terms of such waiver. In the event of any inconsistencies between the terms of this Promissory Note and the terms of any other document related to the loan evidenced by this Promissory Note, the terms of this Promissory Note shall prevail. The Loan Documents contain or expressly incorporate by reference the entire agreement of the parties with respect to the matters contemplated therein and supersede all prior negotiations or agreements, written or oral. The Loan Documents shall not be modified except by written instrument executed by all parties. Any reference to the Loan Documents includes any amendments, renewals or extensions now or hereafter approved by the Lender in writing.

IN WITNESS WHEREOF, the Borrower, intending to be legally bound, has duly executed and delivered this Secured Promissory Note as of the day and year first above written.

---

| |
|:---|
| Encore Medical, Inc. |
| By: |
| Name: |
| Title: |

---

**INTELLECTUAL PROPERTY SECURITY AGREEMENT**

This INTELLECTUAL PROPERTY SECURITY AGREEMENT ("**IP Security Agreement**"), dated as of November 6, 2023, is made by and between ENCORE MEDICAL, INC., a Minnesota corporation (the "**Grantor**") in favor of MERIT MEDICAL SYSTEMS INC. (the "**Lender**"), a Utah corporation, as the "**Secured Party**".

WHEREAS, the Grantor has entered into a Loan Agreement dated as of November 6, 2023 (the "**Loan Agreement**"), with the Lender.

WHEREAS, as a condition precedent to the making of the loan by the Lender under the Loan Agreement, Grantor has executed and delivered to the Lender that certain Security Agreement dated as of November 6, 2023, made by and between the Grantor and the Lender (the "**Security Agreement**").

WHEREAS, under the terms of the Security Agreement, the Grantor has granted to the Lender a security interest in, among other property, certain intellectual property of the Grantor, and has agreed to execute and deliver this IP Security Agreement for recording with governmental authorities, including, but not limited to, the United States Patent and Trademark Office and the United States Copyright Office.

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Grant of Security**. Grantor hereby pledges and grants to the Lender a security interest in and to all of the right, title, and interest of Grantor in, all Grantor's rights, whether now own and/or existing or hereafter created, arising and/or acquired to the following (the "**IP Collateral**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all patents and patent applications of the Grantor, including those set forth in Schedule 1 hereto, and all reissues, divisions, continuations, continuations-in-part, renewals, divisionals, extensions, reexaminations and all inventions (whether or not patentable) to any of the foregoing, and all patent licenses of the Grantor (the "**Patents**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all trademarks, service marks, logos, designs, slogans, trade names, logos, and trade dress of the Grantor, whether registered or unregistered, and all applications of any of the foregoing, together with the goodwill connected with the use thereof and symbolized thereby, all extensions and renewals thereof, and all trademark licenses of the Grantor (the "**Trademarks**"), excluding only United States intent-to-use trademark applications to the extent that, and solely during the period in which, the grant, attachment, or enforcement of a security interest therein would, under applicable federal law, impair the registrability of such applications or the validity or enforceability of registrations issuing from such applications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all copyright rights, copyright applications, copyright registrations in each work of authorship and derivative work thereof of the Grantor, whether published or unpublished, registered or unregistered, now or hereafter existing, licensed, created, acquired or held, and copyright registrations and applications exclusively licensed to Grantor, all extensions and renewals thereof, (the "**Copyrights**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all domain names, including Internet domain names, and social media channels;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all trade secrets or other proprietary or confidential information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all rights with respect to software, documentation, technical information, know-how, data and databases, processes, models, drawings, plans, specifications, and designs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all rights of any kind whatsoever of Grantor accruing under any of the foregoing provided by applicable law of any jurisdiction, by international treaties and conventions, and otherwise throughout the world;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any and all royalties, fees, income, payments, receivables, accounts, general intangibles, deposit accounts, instruments, and other proceeds now or hereafter due or payable with respect to any and all of the foregoing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any and all claims and causes of action with respect to any of the foregoing, whether occurring before, on, or after the date hereof, including all rights to and claims for damages, restitution, and injunctive and other legal and equitable relief for past, present, and future infringement, dilution, misappropriation, dilution, violation, misuse, breach, or default, with the right, but no obligation, to sue for such legal and equitable relief and to collect, or otherwise recover, any such damages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **Recordation**. Grantor authorizes Lender to file and record a UCC financing statement for any IP Collateral in such offices as Lender reasonably deems advisable to perfect its security interest and record a copy of this IP Security Agreement with the United States Patent and Trademark Office and the United States Copyright Office, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **After-Acquired IP Collateral; Further Assurances**. Grantor will notify Lender of each acquisition following the Effective Date in registered or applied for IP Collateral, along with addenda to the applicable Schedule, listing the acquired interests. Grantor hereby confirms and agrees that any and all after acquired IP Collateral shall immediately and automatically upon any Grantor's acquisition of any right, title and interest therein become part of the IP Collateral hereunder. Grantor agrees to execute any further documents, and to take any further actions, reasonably requested by Lender to evidence, maintain the first-priority of or perfect the security interest granted herein, or to effectuate the rights granted to Lender under the Security Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **Loan Documents**. This IP Security Agreement has been entered into pursuant to and in conjunction with the Security Agreement, which is hereby incorporated by reference. The provisions of the Security Agreement shall supersede and control over any conflicting or inconsistent provision herein. The rights and remedies of Lender with respect to the IP Collateral are as provided by the Loan Agreement, the Security Agreement, and related documents, and nothing in this IP Security Agreement shall be deemed to limit such rights and remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **Execution in Counterparts**. This IP Security Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page to this IP Security Agreement in electronic format shall be effective as delivery of a manually executed counterpart of this IP Security Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **Successors and Assigns**. This IP Security Agreement will be binding on and shall inure to the benefit of the parties hereto and their respective successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. **Governing Law**. This IP Security Agreement and any claim, controversy, dispute, or cause of action (whether in contract or tort or otherwise) based upon, arising out of, or relating to this IP Security Agreement and the transactions contemplated hereby and thereby shall be governed by, and construed in accordance with, the laws of the United States and the State of Utah, without giving effect to any choice or conflict of law provision or rule (whether of the State of Utah or any other jurisdiction).

[*SIGNATURE PAGE FOLLOWS*]

IN WITNESS WHEREOF the Grantor has caused this IP Security Agreement to be duly executed and delivered by its officer thereunto duly authorized as of the date first above written.

---

| | |
|:---|:---|
| ENCORE MEDICAL, INC. | ENCORE MEDICAL, INC. |
| By: |  |
| Name: | Michael Corcoran |
| Title: | President and Chief Executive Officer |

---

---

| |
|:---|
| Address for Notices: |
| 2975 Lone Oak Drive, Suite 140 |
| Eagan, Minnesota 55121 |

---

AGREED TO AND ACCEPTED:

---

| | |
|:---|:---|
| MERIT MEDICAL SYSTEMS INC. | MERIT MEDICAL SYSTEMS INC. |
| By: |  |
| Name: | Fred P. Lampropoulos |
| Title: | President and Chief Executive Officer |

---

---

| |
|:---|
| Address for Notices: |
| 1600 West Merit Parkway |
| South Jordan, Utah 84095 |

---

[ACKNOWLEDGMENT]

STATE OF MINNESOTA) )SS. <br> COUNTY OF DAKOTA)

On the 6th day of November, 2023, before me personally appeared Michael Corcoran, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the foregoing instrument, who, being duly sworn, did depose and say that he/she/they executed the same [in his/her/their authorized capacity as the President and Chief Executive Officer of Encore Medical, Inc., the corporation described, and acknowledged the instrument to be his free act and deed/the free act and deed of Encore Medical, Inc. for the uses and purposes mentioned in the instrument.

My Commission Expires:  

 <br> Notary Public <br> Printed Name:

## Exhibit 23.1

**Exhibit 23.1**

![](tm2525595d2_ex23-1img001.jpg)

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the inclusion of our report dated September 4, 2025 on the balance sheets of Encore Medical, Inc. as of December 31, 2024 and 2023, and the related statements of operations, changes in stockholders' equity (deficit), and cash flows for each of the years ended December 31, 2024 and 2023 contained in this Registration Statement of Encore Medical, Inc. dated September 12, 2025 and to the reference to our Firm under the caption "Experts" in the Prospectus included therein.

/s/ Boulay PLLP

Boulay PLLP

Minneapolis, Minnesota

September 12, 2025

**MN** Eden Prairie \| Mankato \| Minneapolis

BoulayGroup.com (t) 952.893.9320

## Ex-Filing

?xml version='1.0' encoding='ASCII'? EX-FILING FEES

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Calculation of Filing Fee Tables**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **S-1**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Encore Medical, Inc.**  |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Type**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Class Title**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Calculation or Carry Forward Rule**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Amount Registered**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Proposed Maximum Offering Price Per Unit**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Maximum Aggregate Offering Price**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Rate**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Amount of Registration Fee**  |
| **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** |
| Fees to be Paid | 1 | Equity | Common Stock, par value $0.01 per share | 457(o) | 3450000 | $5.00 | $17250000.00 | 0.0001531 | $2640.98 |
| Fees to be Paid | 2 | Other | Underwriter's Warrant | Other |  |  |  | 0.0001531 | $0.00 |
| Fees to be Paid | 3 | Equity | Common Stock underlying Underwriter's Warrant | 457(o) | 276000 | $5.00 | $1380000.00 | 0.0001531 | $211.28 |
| Fees Previously Paid |  |  |  |  |  |  |  |  |  |
| **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** |
| Carry Forward Securities |  |  |  |  |  |  |  |  |  |
|  |  |  | Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: |  | $18630000.00  |  | $2852.26  |
|  |  |  | Total Fees Previously Paid:  | Total Fees Previously Paid:  | Total Fees Previously Paid:  |  |  |  | $0.00  |
|  |  |  | Total Fee Offsets:  | Total Fee Offsets:  | Total Fee Offsets:  |  |  |  | $0.00  |
|  |  |  | Net Fee Due:  | Net Fee Due:  | Net Fee Due:  |  |  |  | $2852.26  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Offering Note** <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>1</sup> Represents 3,000,000 shares of Common Stock, plus an overallotment of up to 450,000 shares of Common Stock, that may be issued in the initial public offering upon exercise of the underwriter over-allotment option. Pursuant to Rule 416 under the Securities Act, the securities being registered hereunder include such indeterminate number of additional shares of Common Stock as may be issued after the date hereof as a result of share sub-divisions, share capitalization or similar transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>2</sup> Represents the underwriter's warrant to purchase up to 276,000 shares of Common Stock, equal to 8% of the shares of Common Stock issued in the offering, including the shares of Common Stock that may be issued in exercise of the over-allotment option. In accordance with Rule 457(g), the entire registration fee for the warrants is allocated to the shares of common stock underlying the warrants, and no separate fee is payable for the warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>3</sup> Represents shares of Common Stock underlying the underwriter's warrant to purchase up to 276,000 shares of Common Stock. Pursuant to Rule 416 under the Securities Act, the securities being registered hereunder include such indeterminate number of additional shares of Common Stock as may be issued after the date hereof as a result of share sub-divisions, share capitalization or similar transactions.

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| | |
|:---|:---|
| | |
| **Rules 457(b) and 0-11(a)(2)** | **Rules 457(b) and 0-11(a)(2)** |
| Fee Offset Claims | N/A |
| Fee Offset Sources | N/A |
| **Rule 457(p)** | **Rule 457(p)** |
| Fee Offset Claims | N/A |
| Fee Offset Sources | N/A |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Type**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Class Title**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Amount of Securities Previously Registered**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Maximum Aggregate Offering Price of Securities Previously Registered**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Form Type**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **File Number**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Initial Effective Date**  |
| N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |

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