# EDGAR Filing Document

**Accession Number:** 0000924515
**File Stem:** 0001477932-26-003195
**Filing Date:** 2026-5
**Character Count:** 235999
**Document Hash:** 0eb166a7e954c4c5df86947802a2dba9
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001477932-26-003195.hdr.sgml**: 20260515

**ACCESSION NUMBER**: 0001477932-26-003195

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 75

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260515

**DATE AS OF CHANGE**: 20260515

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** GUIDED THERAPEUTICS INC
- **CENTRAL INDEX KEY:** 0000924515
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 582029543
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-22179
- **FILM NUMBER:** 26985200

**BUSINESS ADDRESS:**
- **STREET 1:** 5835 PEACHTREE CORNERS EAST
- **STREET 2:** SUITE B
- **CITY:** PEACHTREE CORNERS
- **STATE:** GA
- **ZIP:** 30092
- **BUSINESS PHONE:** 7702428723

**MAIL ADDRESS:**
- **STREET 1:** 5835 PEACHTREE CORNERS EAST
- **STREET 2:** SUITE B
- **CITY:** PEACHTREE CORNERS
- **STATE:** GA
- **ZIP:** 30092

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SPECTRX INC
- **DATE OF NAME CHANGE:** 19970226

?xml version='1.0' encoding='ASCII'? gthp_10q.htm

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q**

☒&nbsp;&nbsp;&nbsp;&nbsp; QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

☐&nbsp;&nbsp;&nbsp;&nbsp; TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT 1934

For the quarterly period ended **<u>March 31, 2026</u>**

*Commission File No. **<u>000-22179</u>***

---

| |
|:---|
| **GUIDED THERAPEUTICS, INC.** |
| (Exact Name of Registrant as Specified in Its Charter) |

---

---

| | |
|:---|:---|
| **Delaware** | **58-2029543** |
| (State or other jurisdiction of <br>incorporation or organization) | (I.R.S. Employer <br>Identification No.) |

---

**5835 Peachtree Corners East, Suite B**<br><u>**Peachtree Corners, Georgia 30092**</u><br>(Address of principal executive offices) (Zip Code)<br>

<u>**(770) 242-8723**</u>

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes ☒&nbsp;&nbsp;&nbsp;&nbsp; No ☐

Indicate by check mark whether the registrant has submitted electronically, if any, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒&nbsp;&nbsp;&nbsp;&nbsp; No ☐

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

---

| | | | |
|:---|:---|:---|:---|
| Large Accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
|  |  | 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 accounting standards provided pursuant to Section 13 (a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act. Yes ☐&nbsp;&nbsp;&nbsp;&nbsp; No ☒

As of May 12, 2026, the registrant had 96,537,349 shares of Common Stock, $0.001 par value per share, outstanding.

---

| | | |
|:---|:---|:---|
| **PART I — FINANCIAL INFORMATION** | **PART I — FINANCIAL INFORMATION** | **PART I — FINANCIAL INFORMATION** |
|  |  | Page |
| **[Item 1.](#bs)** | **[Financial Statements](#bs)** | 3 |
|  | [Unaudited Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025](#bs) | 3 |
|  | [Unaudited Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2026 and 2025](#op) | 4 |
|  | [Unaudited Condensed Consolidated Statements of Stockholders' Deficit for the Three Months Ended March 31, 2026 and 2025](#eq) | 5 |
|  | [Unaudited Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025](#cf) | 9 |
|  | [Notes to Unaudited Condensed Consolidated Financial Statements](#n) | 10 |
| **[Item 2.](#i2)** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#i2) | 34 |
| **[Item 3.](#i3)** | [Quantitative and Qualitative Disclosures About Market Risk](#i3) | 42 |
| **[Item 4.](#i4)** | [Controls and Procedures](#i4) | 42 |
| **[PART II — OTHER INFORMATION](#p2)** | **[PART II — OTHER INFORMATION](#p2)** | **[PART II — OTHER INFORMATION](#p2)** |
| **[Item 1.](#ii1)** | [Legal Proceedings](#ii1) | 43 |
| **[Item 2.](#ii2)** | [Unregistered Sales of Equity Securities and Use of Proceeds](#ii2) | 43 |
| **[Item 3.](#ii3)** | [Defaults Upon Senior Securities](#ii3) | 44 |
| **[Item 4.](#ii4)** | [Mine Safety Disclosures](#ii4) | 44 |
| **[Item 5.](#ii5)** | [Other Information](#ii5) | 44 |
| **[Item 6.](#ii6)** | [Exhibits](#ii6) | 45 |
| **[Signatures](#sign)** | **[Signatures](#sign)** | 46 |

---

---

| |
|:---|
| 2 |
| *[**Table of Contents**](#toc)* |

---

---

| | | |
|:---|:---|:---|
| **GUIDED THERAPEUTICS, INC. AND SUBSIDIARY** | **GUIDED THERAPEUTICS, INC. AND SUBSIDIARY** | **GUIDED THERAPEUTICS, INC. AND SUBSIDIARY** |
| **CONDENSED CONSOLIDATED BALANCE SHEETS**  | **CONDENSED CONSOLIDATED BALANCE SHEETS**  | **CONDENSED CONSOLIDATED BALANCE SHEETS**  |
| **(unaudited, in thousands)** | **(unaudited, in thousands)** | **(unaudited, in thousands)** |
|  | **March 31,** | **December 31,**  |
|  | **2026** | **2025** |
| **ASSETS**  | **ASSETS**  | **ASSETS**  |
| **Current Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $369 | $63 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net of allowance for credit losses of $4 at March 31, 2026 and December 31, 2025 | 4 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventory, net of reserves of $818 at March 31, 2026 and December 31, 2025 | 469 | 448 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 69 | 90 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** | 911 | 605 |
| **Non-Current Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 13 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease right-of-use asset, net of amortization | 663 | 686 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | 17 | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total non-current assets** | 693 | 719 |
| **TOTAL ASSETS**  | $**1604** | $**1324** |
| **LIABILITIES AND STOCKHOLDERS' DEFICIT** | **LIABILITIES AND STOCKHOLDERS' DEFICIT** | **LIABILITIES AND STOCKHOLDERS' DEFICIT** |
| **Current Liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $2277 | $2416 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable, related parties | 32 | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 1129 | 1170 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred compensation conversion liability, at fair value | 331 | 548 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 189 | 189 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of lease liability | 58 | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term debt, related parties | 430 | 621 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term notes payable | 65 | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term convertible notes, net of discounts | 264 | 347 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term convertible debt in default | 1150 | 1150 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative liability at fair value | 37 | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** | 5962 | 6636 |
| **Long-Term Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term lease liability | 627 | 651 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term notes payable | 17 | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt, related parties | 174 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total long-term liabilities** | 818 | 694 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities**  | 6780 | 7330 |
| **COMMITMENTS AND CONTINGENCIES (Note 6)** |  |  |
| **STOCKHOLDERS' DEFICIT:**  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Series C preferred stock, $0.001 par value; 9.0 shares authorized; no shares issued or outstanding as of March 31, 2026 and December 31, 2025. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Series C1 convertible preferred stock, $0.001 par value; 20.3 shares authorized, 0.4 shares issued and outstanding as of March 31, 2026 and December 31, 2025. Liquidation preference of $374 at March 31, 2026 and December 31, 2025. | 61 | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;Series C2 preferred stock, $0.001 par value; 5,000 shares authorized, no shares issued or outstanding as of March 31, 2026 and December 31, 2025. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Series D preferred stock, $0.001 par value; 6.0 shares authorized, 0.1 shares issued and outstanding as of March 31, 2026 and December 31, 2025. Liquidation preference of $50 at March 31, 2026 and December 31, 2025. | 18 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;Series E preferred stock, $0.001 par value; 5.0 shares authorized, 0.2 and 0.3 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively. Liquidation preference of $200 and $300 at March 31, 2026 and December 31, 2025, respectively. | 189 | 284 |
| &nbsp;&nbsp;&nbsp;&nbsp;Series F preferred stock, $0.001 par value; 1.5 shares authorized, 0.3 and 1.0 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively. Liquidation preference of $271 and $981 at March 31, 2026 and December 31, 2025, respectively. | 226 | 817 |
| &nbsp;&nbsp;&nbsp;&nbsp;Series F-2 preferred stock, $0.001 par value; 3.5 shares authorized, 0.2 and 0.5 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively. Liquidation preference of $245 and $480 at March 31, 2026 and December 31, 2025, respectively. | 223 | 438 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.001 par value; 500,000 shares authorized, 96,508 and 86,154 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively. | 3481 | 3471 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 148826 | 146092 |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury stock at cost | (132) | (132) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (158068) | (157055) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total stockholders' deficit** | (5176) | (6006) |
| **TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT** | $**1604** | $**1324** |

---

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

---

| |
|:---|
| 3 |
| *[**Table of Contents**](#toc)* |

---

---

| | | |
|:---|:---|:---|
| **GUIDED THERAPEUTICS, INC. AND SUBSIDIARY** | **GUIDED THERAPEUTICS, INC. AND SUBSIDIARY** | **GUIDED THERAPEUTICS, INC. AND SUBSIDIARY** |
| **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**  | **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**  | **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**  |
| **(unaudited, in thousands, except per share data)** | **(unaudited, in thousands, except per share data)** | **(unaudited, in thousands, except per share data)** |
|  | **Three Months Ended** | **Three Months Ended** |
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
| Sales - devices and disposables | $- | $- |
| Cost of goods sold | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit | - | - |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 45 | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 23 | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 451 | 267 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on remeasurement of deferred compensation conversion liability | (217) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 302 | 414 |
| Loss from operations | (302) | (414) |
| Other income (expenses): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (151) | (147) |
| &nbsp;&nbsp;&nbsp;&nbsp;Inducement charge for warrants issued | (78) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of derivative liability | 13 | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain from forgiveness of debt | 3 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of debt |  | (32) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income | 15 | 98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | (198) | (13) |
| Loss before income taxes | (500) | (427) |
| Provision for income taxes | - | - |
| Net loss | (500) | (427) |
| Deemed dividend | (510) |  |
| Preferred stock dividends | (3) | (36) |
| **NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS** | $(1013) | $(463) |
| NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $(0.01) | $(0.01) |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $(0.01) | $(0.01) |
| Weighted average shares outstanding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 88836 | 68291 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 88836 | 68291 |

---

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

---

| |
|:---|
| 4 |
| *[**Table of Contents**](#toc)* |

---

---

| |
|:---|
| **GUIDED THERAPEUTICS, INC. AND SUBSIDIARY** |
| **CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT** |
| **FOR THE THREE MONTHS ENDED MARCH 31, 2026** |
| **(unaudited, in thousands)** |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** |
|  | **Series C** | **Series C** | **Series C1** | **Series C1** | **Series C2** | **Series C2** | **Series D** | **Series D** |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** |
| **Balance at December 31, 2025** |  | $**-** |  | $**61** |  | $**-** |  | $**18** |
| Issuance of common stock for payment of Series E preferred dividends |  |  |  |  |  |  |  |  |
| Issuance of common stock for payment of Series F preferred dividends |  |  |  |  |  |  |  |  |
| Issuance of common stock for payment of Series F-2 preferred dividends |  |  |  |  |  |  |  |  |
| Conversion of Preferred Stock Series E to common stock |  |  |  |  |  |  |  |  |
| Conversion of Preferred Stock Series F to common stock |  |  |  |  |  |  |  |  |
| Conversion of Preferred Stock Series F-2 to common stock |  |  |  |  |  |  |  |  |
| Conversion of debt to common stock and warrants |  |  |  |  |  |  |  |  |
| Stock-based compensation |  |  |  |  |  |  |  |  |
| Exchange and exercise of warrants |  |  |  |  |  |  |  |  |
| Extension of warrant expiration dates and deemed dividend |  |  |  |  |  |  |  |  |
| Warrants issued with debt |  |  |  |  |  |  |  |  |
| Accrued preferred dividends |  |  |  |  |  |  |  |  |
| Net loss |  | - |  | - |  | - |  | - |
| **Balance at March 31, 2026** |  | $**-** |  | $**61** |  | $**-** |  | $**18** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** |
|  | **Series E** | **Series E** | **Series F** | **Series F** | **Series F2** | **Series F2** |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** |
| **Balance at December 31, 2025** |  | $**284** | **1** | $**817** |  | $**438** |
| Issuance of common stock for payment of Series E preferred dividends |  |  |  |  |  |  |
| Issuance of common stock for payment of Series F preferred dividends |  |  |  |  |  |  |
| Issuance of common stock for payment of Series F-2 preferred dividends |  |  |  |  |  |  |
| Conversion of Preferred Stock Series E to common stock |  | (95) |  |  |  |  |
| Conversion of Preferred Stock Series F to common stock |  |  | (1) | (591) |  |  |
| Conversion of Preferred Stock Series F-2 to common stock |  |  |  |  |  | (215) |
| Conversion of debt to common stock and warrants |  |  |  |  |  |  |
| Stock-based compensation |  |  |  |  |  |  |
| Exchange and exercise of warrants |  |  |  |  |  |  |
| Extension of warrant expiration dates and deemed dividend |  |  |  |  |  |  |
| Warrants issued with debt |  |  |  |  |  |  |
| Accrued preferred dividends |  |  |  |  |  |  |
| Net loss |  | - | - | - |  | - |
| **Balance at March 31, 2026** |  | $**189** | **-** | $**226** |  | $**223** |

---

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|:---|
| 5 |
| *[**Table of Contents**](#toc)* |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Additional**<br>**Paid-In**<br>**Capital** |<br>**Treasury** <br>**Stock** |<br>**Accumulated**<br>**Deficit** |<br>**Total** |
| **Balance at December 31, 2025** | **86154** | $**3471** | $**146092** | $**(132)** | $**(157055)** | $**(6006)** |
| Issuance of common stock for payment of Series E preferred dividends | 25 |  | 14 |  |  | 14 |
| Issuance of common stock for payment of Series F preferred dividends | 212 |  | 42 |  |  | 42 |
| Issuance of common stock for payment of Series F-2 preferred dividends | 72 |  | 15 |  |  | 15 |
| Conversion of Preferred Stock Series E to common stock | 400 |  | 95 |  |  |  |
| Conversion of Preferred Stock Series F to common stock | 2840 | 3 | 588 |  |  |  |
| Conversion of Preferred Stock Series F-2 to common stock | 940 | 1 | 214 |  |  |  |
| Conversion of debt to common stock and warrants | 1040 | 1 | 202 |  |  | 203 |
| Stock-based compensation |  |  | 68 |  |  | 68 |
| Exchange and exercise of warrants | 4825 | 5 | 975 |  |  | 980 |
| Extension of warrant expiration dates and deemed dividend |  |  | 510 |  | (510) |  |
| Warrants issued with debt |  |  | 11 |  |  | 11 |
| Accrued preferred dividends |  |  |  |  | (3) | (3) |
| Net loss | - | - | - | - | (500) | (500) |
| **Balance at March 31, 2026** | **96508** | $**3481** | $**148826** | $**(132)** | $**(158068)** | $**(5176)** |

---

The accompanying notes are an integral part of these condensed consolidated statements.

---

| |
|:---|
| 6 |
| *[**Table of Contents**](#toc)* |

---

---

| |
|:---|
| **GUIDED THERAPEUTICS, INC. AND SUBSIDIARY** |
| **CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT** |
| **FOR THE THREE MONTHS ENDED MARCH 31, 2025** |
| **(unaudited, in thousands)** |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** |
|  | **Series C** | **Series C** | **Series C1** | **Series C1** | **Series C2** | **Series C2** | **Series D** | **Series D** |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** |
| **Balance at December 31, 2024** |  | $**105** | **1** | $**170** | **2** | $**439** | **1** | $**159** |
| Issuance of common stock and warrants in private placement offering |  |  |  |  |  |  |  |  |
| Issuance of common stock for payment of Series D preferred dividends |  |  |  |  |  |  |  |  |
| Issuance of common stock for payment of Series E preferred dividends |  |  |  |  |  |  |  |  |
| Issuance of common stock for payment of Series F-2 preferred dividends |  |  |  |  |  |  |  |  |
| Conversion of Preferred Stock Series C to common stock |  | (105) |  |  |  |  |  |  |
| Conversion of Preferred Stock Series C1 to common stock |  |  | (1) | (109) |  |  |  |  |
| Conversion of Preferred Stock Series C2 to common stock |  |  |  |  | (2) | (439) |  |  |
| Conversion of Preferred Stock Series D to common stock |  |  |  |  |  |  | (1) | (127) |
| Conversion of Preferred Stock Series F-2 to common stock |  |  |  |  |  |  |  |  |
| Conversion of debt to common stock and warrants |  |  |  |  |  |  |  |  |
| Stock-based compensation |  |  |  |  |  |  |  |  |
| Accrued preferred dividends |  |  |  |  |  |  |  |  |
| Net loss |  | - | - | - | - | - | - | - |
| **Balance at March 31, 2025** |  | $**-** | **-** | $**61** | **-** | $**-** | **-** | $**32** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** |
|  | **Series E** | **Series E** | **Series F** | **Series F** | **Series F2** | **Series F2** |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** |
| **Balance at December 31, 2024** | **1** | $**834** | **1** | $**817** |  | $**475** |
| Issuance of common stock and warrants in private placement offering |  |  |  |  |  |  |
| Issuance of common stock for payment of Series D preferred dividends |  |  |  |  |  |  |
| Issuance of common stock for payment of Series E preferred dividends |  |  |  |  |  |  |
| Issuance of common stock for payment of Series F-2 preferred dividends |  |  |  |  |  |  |
| Conversion of Preferred Stock Series C to common stock |  |  |  |  |  |  |
| Conversion of Preferred Stock Series C1 to common stock |  |  |  |  |  |  |
| Conversion of Preferred Stock Series C2 to common stock |  |  |  |  |  |  |
| Conversion of Preferred Stock Series D to common stock |  |  |  |  |  |  |
| Conversion of Preferred Stock Series F-2 to common stock |  |  |  |  |  | (23) |
| Conversion of debt to common stock and warrants |  |  |  |  |  |  |
| Stock-based compensation |  |  |  |  |  |  |
| Accrued preferred dividends |  |  |  |  |  |  |
| Net loss | - | - | - | - |  | - |
| **Balance at March 31, 2025** | **1** | $**834** | **1** | $**817** |  | $**452** |

---

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|:---|
| 7 |
| *[**Table of Contents**](#toc)* |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Additional**<br>**Paid-In**<br>**Capital** |<br>**Treasury** <br>**Stock** |<br>**Accumulated**<br>**Deficit** |<br>**Total** |
| **Balance at December 31, 2024** | **65131** | $**3452** | $**142501** | $**(132)** | $**(153709)** | $**(4889)** |
| Issuance of common stock and warrants in private placement offering | 2045 | 2 | 203 |  |  | 205 |
| Issuance of common stock for payment of Series D preferred dividends | 52 |  | 7 |  |  | 7 |
| Issuance of common stock for payment of Series E preferred dividends | 49 |  | 7 |  |  | 7 |
| Issuance of common stock for payment of Series F-2 preferred dividends | 7 |  | 1 |  |  | 1 |
| Conversion of Preferred Stock Series C to common stock | 2259 | 2 | 103 |  |  |  |
| Conversion of Preferred Stock Series C1 to common stock | 1350 | 1 | 108 |  |  |  |
| Conversion of Preferred Stock Series C2 to common stock | 5400 | 5 | 434 |  |  |  |
| Conversion of Preferred Stock Series D to common stock | 1050 | 1 | 126 |  |  |  |
| Conversion of Preferred Stock Series F-2 to common stock | 100 |  | 23 |  |  |  |
| Conversion of debt to common stock and warrants | 525 | 1 | 84 |  |  | 85 |
| Stock-based compensation |  |  | 19 |  |  | 19 |
| Accrued preferred dividends |  |  |  |  | (36) | (36) |
| Net loss | - | - | - | - | (427) | (427) |
| **Balance at March 31, 2025** | **77968** | $**3464** | $**143616** | $**(132)** | $**(154172)** | $**(5028)** |

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The accompanying notes are an integral part of these condensed consolidated statements.

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| **GUIDED THERAPEUTICS, INC. AND SUBSIDIARY** | **GUIDED THERAPEUTICS, INC. AND SUBSIDIARY** | **GUIDED THERAPEUTICS, INC. AND SUBSIDIARY** |
| **CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS** | **CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS** | **CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS** |
| **(unaudited, in thousands)** | **(unaudited, in thousands)** | **(unaudited, in thousands)** |
|  | **Three Months Ended** | **Three Months Ended** |
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
| **CASH FLOWS FROM OPERATING ACTIVITIES:** |  |  |
| Net loss | $(500) | $(427) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 2 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt issuance costs and discounts | 48 | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock based compensation | 68 | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of derivatives | (13) | (52) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of deferred compensation conversion liability | (217) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of lease right-of-use-asset | 22 | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inducement charge for warrants issued | 78 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain from forgiveness of debt | (3) | (16) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of debt |  | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-cash expenses | 6 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | (21) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 21 | 111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | (97) | 106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | (11) | (25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | - | (179) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**NET CASH USED IN OPERATING ACTIVITIES** | **(617)** | **(331)** |
| **CASH FLOWS FROM FINANCING ACTIVITIES:** |  |  |
| Proceeds from warrant exercises | 980 |  |
| Proceeds from the issuance of notes payable | 188 |  |
| Payments made on notes payable | (215) | (147) |
| Payments made on notes payable issued to related parties | (2) |  |
| Payments of debt issuance costs | (28) |  |
| Proceeds from issuance of common stock and warrants in private placement offerings | - | 205 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES** | **923** | **58** |
| **NET CHANGE IN CASH AND CASH EQUIVALENTS** | **306** | **(273)** |
| Cash at beginning of period | 63 | 388 |
| **CASH AT END OF PERIOD** | $**369** | $**115** |
| **SUPPLEMENTAL DISCLOSURE FOR OPERATING ACTIVITIES:** |  |  |
| Cash paid for interest | $23 | $20 |
| **SUPPLEMENTAL DISCLOSURE FOR NON-CASH INVESTING AND FINANCING ACTIVITIES:** |  |  |
| Dividends on preferred stock | $3 | $36 |
| Deemed dividend for warrant exchanges | $510 | $- |
| Common stock issued for payment of accrued dividends | $70 | $15 |
| Conversion of Preferred Stock Series C to common stock | $- | $105 |
| Conversion of Preferred Stock Series C1 to common stock | $- | $109 |
| Conversion of Preferred Stock Series C2 to common stock | $- | $439 |
| Conversion of Preferred Stock Series D to common stock | $- | $127 |
| Conversion of Preferred Stock Series E to common stock | $94 | $- |
| Conversion of Preferred Stock Series F to common stock | $591 | $- |
| Conversion of Preferred Stock Series F-2 to common stock | $215 | $23 |
| Conversion of debt and accrued interest into common stock | $126 | $- |
| Warrants issued with debt | $11 | $- |
| Inception of derivative liability | $13 | $- |

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

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**GUIDED THERAPEUTICS, INC. AND SUBSIDIARY**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

**1. ORGANIZATION, BACKGROUND, AND BASIS OF PRESENTATION**

Guided Therapeutics, Inc. (formerly SpectRx, Inc.), together with its wholly owned subsidiary, InterScan, Inc. (formerly Guided Therapeutics, Inc.), collectively referred to herein as the "Company", is a medical technology company focused on developing innovative medical devices that have the potential to improve healthcare. The Company's primary focus is the continued commercialization of its LuViva non-invasive cervical cancer detection device and extension of its cancer detection technology into other cancers, including esophageal. The Company's technology, including products in research and development, primarily relates to biophotonics technology for the non-invasive detection of cancers.

**Basis of Presentation** 

The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the Securities and Exchange Commission ("SEC") pursuant to Section 13 or 15(d) under the Securities Exchange Act of 1934. The December 31, 2025 balances reported herein are derived from the audited consolidated financial statements for the year ended December 31, 2025. The results of operations for the interim periods are not necessarily indicative of the results of operations expected for the full year.

All intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the Company as of March 31, 2026 and December 31, 2025, and the consolidated results of operations and cash flows for the three-month periods ended March 31, 2026 and 2025 have been included. Amounts are reported in thousands of dollars, except per share amounts, unless otherwise noted.

The Company's prospects must be considered in light of the substantial risks, expenses and difficulties encountered by entrants into the medical device industry. This industry is characterized by an increasing number of participants, intense competition and a high failure rate. The Company has experienced net losses since its inception and, as of March 31, 2026, it had an accumulated deficit of approximately $158.0 million. To date, the Company has engaged primarily in research and development efforts and the early stages of marketing its products. The Company may not be successful in growing sales for its products. Moreover, required regulatory clearances or approvals may not be obtained in a timely manner, or at all. The Company's products may not ever gain market acceptance and the Company may not ever generate significant revenues or achieve profitability. The development and commercialization of the Company's products requires substantial development, regulatory, sales and marketing, manufacturing and other expenditures. The Company expects operating losses to continue for the foreseeable future as it continues to expend substantial resources to complete development of its products, obtain regulatory clearances or approvals, build its marketing, sales, manufacturing and finance capabilities, and conduct further research and development.

**Going Concern**

The Company's consolidated financial statements have been prepared and presented on a basis assuming it will continue as a going concern. The factors below raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary from the outcome of this uncertainty.

At March 31, 2026, the Company had a working capital deficit of approximately $5.1 million, accumulated deficit of $158.0 million, and incurred a net loss attributable to common stockholders of $1.0 million for the three months then ended. Stockholders' deficit totaled approximately $5.2 million at March 31, 2026, primarily due to recurring net losses from operations.

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During the three months ended March 31, 2026, the Company received $1.0 million of proceeds from warrant exercises and $0.2 million of proceeds from issuances of notes payable. The Company will need to continue to raise capital in order to provide funding for its operations and to support the U.S. Food and Drug Administration ("FDA") and China National Medical Products Administration ("NMPA") approval process. If sufficient capital cannot be raised, the Company will continue its plans of curtailing operations by reducing discretionary spending and staffing levels and attempting to operate by only pursuing activities for which it has external financial support. However, there can be no assurance that such external financial support will be sufficient to maintain even limited operations or that the Company will be able to raise additional funds on acceptable terms, or at all. In such a case, the Company might be required to enter into unfavorable agreements or, if that is not possible, be unable to continue operations, and to the extent practicable, liquidate and/or file for bankruptcy protection.

**2. SIGNIFICANT ACCOUNTING POLICIES**

**Use of Estimates** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant areas where estimates are used include the inventory valuation, valuation of share-based compensation, the valuation of the deferred compensation conversion liability, and the valuation of the convertible note payable derivative liability. Management bases its estimates on historical experience and on various other assumptions believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates, and such differences could be material to the Company's financial statements.

**Recently Adopted Accounting Pronouncements**

In August 2024, the FASB issued ASU No. 2024-04, *Debt—Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt*, which clarifies the accounting for certain modifications or exchanges of convertible debt instruments that are induced by the issuer. The guidance requires entities to recognize, as an expense in the period incurred, the incremental fair value of consideration transferred to induce conversion, to the extent the transaction qualifies as an induced conversion.

The Company adopted this guidance on a prospective basis during the three months ended March 31, 2026. During the three months ended March 31, 2026, the Company recognized an inducement charge of approximately $78 related to the conversion of a convertible note and accrued interest into common stock, which included the issuance of warrants as additional consideration to induce conversion. The adoption of this guidance did not have a material impact on the Company's consolidated financial position or cash flows.

**Recently Issued Accounting Standard Updates ("ASUs") Not Yet Adopted**

In November 2024, the FASB issued ASU No. 2024-03, *Income Statement—Reporting Comprehensive Income (Subtopic 220-40): Disaggregation of Income Statement Expenses*, which requires public business entities to provide additional disaggregated expense disclosures in both annual and interim periods. In January 2025, the FASB issued ASU No. 2025-01, which clarifies the effective date of ASU 2024-03. As clarified, the guidance is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures.

A variety of proposed or otherwise potential accounting standards are currently under consideration by standard-setting organizations and certain regulatory agencies. Because of the tentative and preliminary nature of such proposed standards, management has not yet determined the effect, if any, that the implementation of such proposed standards would have on the Company's consolidated financial statements.

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**Cash Equivalents** 

The Company considers all highly liquid investments with original maturity of three months or less when purchased to be a cash equivalent.

**Concentrations of Credit Risk**

The Company maintains a cash balance in a financial institution that is insured by the Federal Deposit Insurance Corporation up to certain federal limitations. At times, the Company's cash balance exceeds these federal limitations. The amount in excess of insured limitations was $121 and nil as of March 31, 2026 and December 31, 2025, respectively.

**Inventory Valuation**

All inventories are stated at the lower of cost or net realizable value, with cost determined substantially on a "first-in, first-out" basis. Selling, general, and administrative expenses are not inventoried, but are charged to expense when incurred. The following schedule presents a summary of inventories by major class:

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|  | **March 31,**<br>**2026** | **December 31,** <br>**2025** |
| Raw materials | $1212 | $1191 |
| Work-in-progress | 71 | 71 |
| Finished goods | 4 | 4 |
| Inventory reserve | (818) | (818) |
| **Total inventory**  | $**469** | $**448** |

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The company periodically reviews the value of items in inventory and provides write-downs or write-offs of inventory based on its assessment of market conditions. Write-downs and write-offs are charged to cost of goods sold.

**Property and Equipment** 

Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over estimated useful lives of three to seven years. Depreciation and amortization expense are included in general and administrative expense on the statements of operations. Expenditures for repairs and maintenance are expensed as incurred. The following schedule presents a summary of property, equipment and leasehold improvements, net:

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|  | **March 31,**<br>**2026** | **December 31,** <br>**2025** |
| Equipment | $953 | $953 |
| Software | 634 | 634 |
| Furniture and fixtures | 17 | 17 |
| Leasehold improvements | 12 | 12 |
| Subtotal | 1616 | 1616 |
| Less accumulated depreciation | (1603) | (1600) |
| **Property, equipment and leasehold improvements, net**  | $**13** | $**16** |

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Depreciation expense related to property and equipment for the three months ended March 31, 2026 and 2025 was not material.

**Debt Issuance Costs**

Debt issuance costs are capitalized and amortized over the term of the associated debt. Debt issuance costs are presented in the balance sheet as a direct deduction from the carrying amount of the debt liability consistent with the debt discount.

**Patent Costs (Principally Legal Fees)**

Costs incurred in filing, prosecuting, and maintaining patents are recurring, and expensed as incurred. Costs for maintaining patents are expensed as incurred as the Company has not yet received U.S. FDA approval and recovery of these costs is uncertain. Such costs were not material for the three months ended March 31, 2026 and 2025.

**Leases**

A lease provides the lessee the right to control the use of an identified asset for a period of time in exchange for consideration. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and operating lease liabilities represent the Company's obligation to make lease payments arising from the lease. The Company determines if an arrangement is a lease at inception. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term.

Where an operating lease contains extension options that the Company is reasonably certain to exercise, the extension period is included in the calculation of the right-of-use assets and lease liabilities.

The discount rate used to determine the commencement date present value of lease payments is the interest rate implicit in the lease, or when that is not readily determinable, the Company utilizes its secured borrowing rate. Right-of-use assets include any lease payments required to be made prior to commencement and exclude lease incentives. Both right-of-use assets and lease liabilities exclude variable payments not based on an index or rate, which are treated as period costs. The Company's lease agreements do not contain significant residual value guarantees, restrictions or covenants. See Note 6 – "*Commitments and Contingencies."*

**Accrued Liabilities**

The following table presents a summary of accrued liabilities:

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|  | **March 31,** <br>**2026** | **December 31,** <br>**2025** |
| Compensation | $570 | $525 |
| Professional fees | 37 | 115 |
| Interest | 347 | 291 |
| Vacation | 40 | 35 |
| Preferred dividends | 128 | 195 |
| Other accrued expenses | 7 | 9 |
| **Accrued liabilities** | $**1129** | $**1170** |

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**Revenue Recognition**

ASC 606, *Revenue from Contracts with Customers*, establishes a single and comprehensive framework which sets out how much revenue is to be recognized, and when. The core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the vendor expects to be entitled in exchange for those goods or services. Revenue is recognized when control over the goods or services is transferred to the customer. For the Company, revenue is primarily generated from the sale of medical devices and related components, and in certain circumstances may also include service, licensing, or distribution arrangements. The application of the core principle in ASC 606 is carried out in five steps:

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| Step 1 – Identify the contract with a customer: a contract is defined as an agreement (including oral and implied), between two or more parties, that creates enforceable rights and obligations and sets out the criteria for each of those rights and obligations. The contract needs to have commercial substance and it is probable that the entity will collect the consideration to which it will be entitled. In the medical device industry, contracts may include sales agreements with hospitals, clinics, distributors, or international partners. |
| Step 2 – Identify the performance obligations in the contract: a performance obligation in a contract is a promise (including implicit) to transfer a good or service to the customer. Each performance obligation should be capable of being distinct and is separately identifiable in the contract. For the Company, performance obligations typically consist of the delivery of medical devices, related disposables or accessories, and in certain arrangements may include installation services, training, technical support, or other post-delivery obligations. |
| Step 3 – Determine the transaction price: transaction price is the amount of consideration that the entity can be entitled to, in exchange for transferring the promised goods and services to a customer, excluding amounts collected on behalf of third parties. Transaction prices for the Company's products include fixed prices stated in purchase orders or distribution agreements. |
| Step 4 – Allocate the transaction price to the performance obligations: If a contract contains multiple performance obligations, the transaction price is allocated to each performance obligation based on the relative standalone selling price of each promised good or service. Standalone selling prices are determined using observable market prices when available or estimated using appropriate pricing methods. |
| Step 5 – Recognize revenue when (or as) performance obligations are satisfied: Revenue is recognized when control of the promised goods or services transfers to the customer. For product sales, this generally occurs at a point in time when the device is shipped or delivered to the customer in accordance with the contractual shipping terms. Revenue related to services or other ongoing obligations, if any, is recognized over the period in which the services are performed. |

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The Company's revenues do not require significant estimates or judgments and are recognized when control of the promised goods or services is transferred to the Company's customers, which occurs at a point in time, most frequently upon shipment of the product or receipt of the product, depending on shipment terms. Revenue is measured as the amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company does not offer returns, discounts, loyalty programs or other sales incentive programs that are material to revenue recognition. The Company is not party to contracts that include multiple performance obligations or material variable consideration.

The Company evaluated its arrangements under the principal versus agent guidance in ASC 606 and determined that it acts as the principal in its revenue arrangements because it controls the specified goods prior to transfer to the customer, is primarily responsible for fulfilling the promise to provide the goods and has discretion in establishing pricing. Accordingly, revenue is recognized on a gross basis. For the three months ended March 31, 2025, all of the Company's revenue was generated from sales to customers located in China.

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**Contract Balances**

The Company defers payments received as revenue until earned based on the related contracts and applying ASC 606 as required. Deferred revenue totaled $189, $189, and $849 as of March 31, 2026, December 31, 2025 and December 31, 2024, respectively.

The Company did not have material contract asset balances as of the periods presented.

**Trade Receivables**

Trade receivables are recorded net of allowances for chargebacks, cash discounts for prompt payment and credit losses. The Company estimates an allowance for expected credit losses by considering factors such as historical experience, credit quality, the age of the accounts receivable balances, and current economic conditions that may affect a customer's ability to pay. The corresponding expense for the credit loss allowance is reflected in selling, general and administrative expenses. The credit loss allowance was immaterial as of March 31, 2026 and December 31, 2025.

**Research and Development** 

Research and development expenses consist of expenditures for research conducted by the Company and payments made under contracts with consultants or other outside parties and costs associated with internal and contracted clinical trials. All research and development costs are expensed as incurred.

**Income Taxes**

The provision for income taxes is determined in accordance with ASC 740, "*Income Taxes*". The Company provides for income taxes based on enacted tax law and statutory tax rates at which items of income and expense are expected to be settled in our income tax return. Certain items of revenue and expense are reported for Federal income tax purposes in different periods than for financial reporting purposes, thereby resulting in deferred income taxes. Deferred taxes are also recognized for operating losses that are available to offset future taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.

The Company has filed its 2025 federal and state corporate tax returns. Although the Company has been experiencing recurring losses, it is required to file tax returns for compliance with IRS regulations and that of applicable state jurisdictions. At December 31, 2025, the Company had approximately $66.3 million of net operating losses carryforward available, $3.0 million of which will expire in 2026. The remaining net operating loss will be eligible to be carried forward for tax purposes at federal and applicable states' level. A full valuation allowance has been recorded related to the deferred tax assets.

The Company recognizes uncertain tax positions based on a benefit recognition model. Provided that the tax position is deemed more likely than not of being sustained, the Company recognizes the largest amount of tax benefit that is greater than 50.0% likely of being ultimately realized upon settlement. The tax position is derecognized when it is no longer more likely than not of being sustained. The Company classifies income tax related interest and penalties as interest expense and selling, general and administrative expense, respectively, on the consolidated statements of operations.

**Warrants**

The Company has issued warrants, which allow the warrant holder to purchase one share of stock at a specified price for a specified period of time. The Company records equity instruments including warrants based on the fair value at the date of issue. The fair value of warrants classified as equity instruments at the date of issuance is estimated using the Black-Scholes or binomial option pricing models.

The Company evaluates all warrants to determine whether they should be classified as equity or liabilities in accordance with ASC 815-40. Warrants that are not indexed to the Company's own stock or that require net cash settlement are classified as liabilities and measured at fair value each reporting period. As of the periods presented, the Company had no outstanding liability-classified warrants.

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**Stock Based Compensation** 

The Company accounts for its stock-based awards in accordance with ASC Subtopic 718, "*Compensation – Stock Compensation*", which requires fair value measurement on the grant date and recognition of compensation expense for all stock-based payment awards made to employees and directors. The Company determines the fair value of stock options using the Black-Scholes model. The fair value of restricted stock awards is based upon the quoted market price of the shares of common stock on the date of grant. The fair value of stock-based awards is expensed over the requisite service periods of the awards. The Company accounts for forfeitures of stock-based awards as they occur.

Certain share-based awards provide for settlement at the employee's election, including conversion features embedded in deferred compensation arrangements. When the employee, rather than the Company, controls the settlement method, the award does not meet the criteria for equity classification and is instead classified as a liability under ASC 718. Liability-classified awards are initially measured at fair value on the grant date and remeasured to fair value at each subsequent reporting date, with changes in fair value recognized as compensation cost or a reduction thereof in the period of change. The liability is presented separately on the condensed consolidated balance sheets as "Deferred compensation conversion liability, at fair value." The fair value of liability-classified awards is estimated using the Black-Scholes option pricing model, consistent with the methodology described below.

The Black-Scholes option pricing model requires the input of certain assumptions that require the Company's judgment, including the expected term and the expected stock price volatility of the underlying stock. The assumptions used in calculating the fair value of stock-based compensation represent management's best estimates, but these estimates involve inherent uncertainties and the application of judgment. As a result, if factors change resulting in the use of different assumptions, stock-based compensation expense could be materially different in the future.

During the three months ended March 31, 2026, the Company recognized $60 of expense for stock options and $8 of expense for warrants issued to a consultant. During the three months ended March 31, 2025, the Company recognized $19 of expense for stock options. The fair value of the deferred compensation conversion liability was $331 as of March 31, 2026. During the three months ended March 31, 2026, the Company recognized a reduction in compensation cost of $217 related to the remeasurement of this liability, presented as "Gain on remeasurement of deferred compensation conversion liability" in the condensed consolidated statements of operations.

**Derivatives**

The Company reviews the terms of convertible debt issued to determine whether there are embedded derivative instruments, including embedded conversion options, which are required to be bifurcated and accounted for separately as derivative financial instruments. In circumstances where the host instrument contains more than one embedded derivative instrument, including the conversion option, that is required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument.

Bifurcated embedded derivatives are initially recorded at fair value and are then revalued at each reporting date with changes in the fair value reported as non-operating income or expense. When the equity or convertible debt instruments contain embedded derivative instruments that are to be bifurcated and accounted for as liabilities, the total proceeds received are first allocated to the fair value of all the bifurcated derivative instruments. The remaining proceeds, if any, are then allocated to the host instruments themselves, usually resulting in those instruments being recorded at a discount from their face value. The discount from the face value of the convertible debt, together with the stated interest on the instrument, is amortized over the life of the instrument through periodic charges to interest expense.

**Fair Value Measurements**

ASC 820, "*Fair Value Measurements and Disclosures,"* clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that should be determined based upon assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

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| **Level 1:** Quoted prices for identical assets or liabilities in active markets that the Company can access at the measurement date. |
| **Level 2:** Significant other observable inputs other than level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data. |
| **Level 3:** Significant unobservable inputs that reflect the Company's judgment about the assumptions that market participants would use in pricing an asset or liability. |

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An asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

Assets and liabilities measured at fair value are based on one or more of the following three valuation techniques noted in ASC 820:

· **Market approach:** Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

· **Cost approach:** Amount that would be required to replace the service capacity of an asset (replacement cost).

· **Income approach:** Techniques to convert future amounts to a single present value amount

The Company believes its valuation methods are appropriate and consistent with other market participants, however the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

**3. STOCKHOLDERS' DEFICIT** 

**Common Stock**

The Company has authorized 500,000,000 shares of common stock with $0.001 par value. As of March 31, 2026 and December 31, 2025, 96,508,395 and 86,153,918 shares of common stock were issued and outstanding, respectively.

**Preferred Stock**

The Company has authorized 5,000,000 shares of preferred stock with $0.001 par value. The board of directors has the authority to issue these shares and to set dividends, voting and conversion rights, redemption provisions, liquidation preferences, and other rights and restrictions.

***Series C Preferred Stock***

The board designated 9,000 shares of preferred stock as Series C Preferred Stock. At March 31, 2026 and December 31, 2025, there were no shares of Series C Preferred Stock issued or outstanding.

Holders of the Series C Preferred Stock were entitled to quarterly cumulative dividends at an annual rate of 12.0% until 42 months after the original issuance date (the "Dividend End Date"), payable in cash or, subject to certain conditions, the Company's common stock. Unpaid accrued dividends were $120 as of March 31, 2026 and December 31, 2025.

***Series C1 Convertible Preferred Stock***

The board designated 20,250 shares of preferred stock as Series C1 Convertible Preferred Stock ("Series C1"), of which 374.25 shares were issued and outstanding at March 31, 2026 and December 31, 2025. Shares of Series C1 are convertible into common stock by their holder at any time and may be mandatorily convertible upon the achievement of specified average trading prices for the Company's common stock. The Series C1 shares have a conversion price of $0.50 per share.

The terms of the Series C1 Preferred Stock are substantially similar to those of the Series C Preferred Stock, except that Series C1 does not accrue dividends or provide for at-the-market make-whole payments and does not automatically adjust in connection with reverse stock splits or conversions of outstanding convertible debt.

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***Series C2 Preferred Stock***

On August 31, 2018, the Company entered into agreements with certain holders of its Series C1 Preferred Stock to exchange those shares for an equal number of newly created Series C2 Preferred Stock. At March 31, 2026 and December 31, 2025, there were no shares of Series C2 Preferred Stock issued and outstanding.

***Series D Preferred Stock***

The Board designated 6,000 shares of preferred stock as Series D Preferred Stock, of which 50 shares were issued and outstanding at March 31, 2026 and December 31, 2025. The Series D Preferred Stock was issued in 2021 in connection with a financing transaction that included common stock and warrants. Each share has a par value of $0.001 and a stated value of $750. The Series D Preferred Stock is not currently convertible; however, conversion may occur at the request of the holder with the Company's approval. The Series D Preferred Stock accrued dividends for a period of five years from the date of issuance, after which dividends no longer accrue. As the five-year accrual period has ended, no additional dividends are accruing as of March 31, 2026. Accrued dividends as of March 31, 2026 and December 31, 2025 were not material.

***Series E Preferred Stock***

The Board designated 5,000 shares of preferred stock as Series E Preferred Stock, of which 200 and 300 shares were issued and outstanding at March 31, 2026 and December 31, 2025, respectively. During the three months ended March 31, 2026, the Company issued 25,338 shares of common stock in payment of accrued dividends on the Series E Preferred Stock and issued 400,000 shares of common stock upon the conversion of 100 shares of Series E Preferred Stock. These transactions were with Dr. Imhoff, a member of the Company's Board of Directors.

The Series E Preferred Stock is not currently convertible; however, conversion may occur at the request of the holder with the Company's approval. The Series E Preferred Stock no longer accrues dividends. Each share of Series E Preferred Stock has a par value of $0.001 and a stated value of $1,000. Holders were entitled to cumulative dividends at a rate of 8% per annum for a period of five years from the date of issuance, payable annually in cash or, at the Company's option, shares of common stock.

***Series F Convertible Preferred Stock***

The Board designated 1,500 shares of preferred stock as Series F Preferred Stock, of which 271 and 981 shares were issued and outstanding at March 31, 2026 and December 31, 2025, respectively. During the three months ended March 31, 2026, the Company issued 2,840,000 shares of common stock upon the conversion of 710 shares of Series F Preferred Stock and issued 211,645 shares of common stock in payment of accrued dividends.

Each share of Series F Preferred Stock has a stated value of $1,000 and was originally convertible into 4,000 shares of common stock. The Series F Preferred Stock is not currently convertible; however, conversion may occur at the request of the holder with the Company's approval. Holders were entitled to cumulative dividends at a rate of 6% per annum for a period of five years from the date of issuance, after which no further dividends accrue. Accrued dividends related to the Series F Preferred Stock were not material as of March 31, 2026 and totaled $45 as of December 31, 2025.

***Series F-2 Preferred Stock***

The Company was oversubscribed for its Series F Preferred Stock, resulting in the designation of Series F-2 Preferred Stock with substantially similar terms. The Board designated 3,500 shares of preferred stock as Series F-2 Preferred Stock, of which 245 and 480 shares were issued and outstanding at March 31, 2026 and December 31, 2025, respectively. During the three months ended March 31, 2026, the Company issued 940,000 shares of common stock upon the conversion of 235 shares of Series F-2 Preferred Stock and issued 72,189 shares of common stock in payment of accrued dividends.

Each share of Series F-2 Preferred Stock has a stated value of $1,000 and was originally convertible into 4,000 shares of common stock. The Series F-2 Preferred Stock was convertible for a period of five years from the date of issuance. Of the shares currently outstanding, 125 shares remain within their five-year conversion period and are convertible at the request of the holder with the Company's approval, while the remaining 120 shares are no longer convertible as the applicable conversion period has expired. Holders were entitled to cumulative dividends at a rate of 6% per annum for a period of five years from the date of issuance, after which no further dividends accrue. Accrued dividends related to the Series F-2 Preferred Stock were not material as of March 31, 2026 and totaled $22 as of December 31, 2025.

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***Series G Preferred Stock***

During January 2021, the board designated 1,000,000 shares of preferred stock as Series G Preferred Stock, none of which remained outstanding as of March 31, 2026 or December 31, 2025. The Series G Convertible Preferred Stock had a mandatory redemption feature and was fully redeemed prior to January 1, 2022.

**Warrants**

The following table summarizes changes in the Company's outstanding warrants to purchase common stock for the three months ended March 31, 2026 and 2025:

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| | | |
|:---|:---|:---|
|  | **Warrants** <br>**(Underlying** <br>**Shares)** | **Weighted-Average Exercise Price Per Share** |
| Outstanding, December 31, 2025 | 45165649 | $0.40 |
| &nbsp;&nbsp;&nbsp;&nbsp;Warrants issued | 5177500 | 0.21 |
| &nbsp;&nbsp;&nbsp;&nbsp;Warrants exchanged | (4825000) | 0.51 |
| &nbsp;&nbsp;&nbsp;&nbsp;Warrants expired | (900000) | 0.30 |
| &nbsp;&nbsp;&nbsp;&nbsp;Warrants exercised | (4825000) | $0.20 |
| Outstanding, March 31, 2026 | 39793149 | $0.39 |

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|  | **Warrants** <br>**(Underlying** <br>**Shares)** | **Weighted-Average Exercise Price Per Share** |
| Outstanding, December 31, 2024 | 37174468 | $0.42 |
| &nbsp;&nbsp;&nbsp;&nbsp;Warrants issued | 2571023 | 0.13 |
| Outstanding, March 31, 2025 | 39745491 | $0.40 |

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***Warrant Exchange Transactions***

On February 25, 2026, the Company entered into a series of warrant exchange agreements with certain holders of its outstanding warrants originally issued in 2022. Under these agreements, holders were offered two alternatives: (i) exchange one of their existing warrants with exercise prices of $0.50 and $0.65 per share for new warrants with reduced exercise prices of $0.20 or $0.25 per share, respectively, which were required to be exercised immediately, and retain the remaining warrants with their original exercise prices of $0.50 or $0.65 per share and receive a one-year extension of the original expiration date, or (ii) keep the terms of the existing warrants unchanged. These transactions were conducted pursuant to individually negotiated exchange agreements with each holder.

As a result of these transactions, approximately 4,825,000 warrants were exchanged for new warrants at a reduced exercise price and exercised immediately, resulting in the issuance of approximately 4,825,000 shares of common stock and cash proceeds of approximately $980 to the Company. The remaining approximately 4,425,000 warrants retained their original exercise prices and had their expiration dates extended by one year and remain outstanding, expiring in 2027. The one-year extension of the remaining warrants resulted in incremental fair value of approximately $510, which was recognized as a deemed dividend recorded as an adjustment to additional paid-in capital. Holders of approximately 11,973,080 warrants elected to keep the terms of their existing warrants unchanged pursuant to Alternative (ii); these warrants retain their original exercise prices and expiration dates and are scheduled to expire in 2026.

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***Debt Conversion and Warrant Issuance***

On March 16, 2026, the Company entered into an exchange agreement with the holder of a $75 convertible promissory note, pursuant to which the holder agreed to convert the outstanding principal and accrued interest of $8 into 414,082 shares of the Company's common stock at a conversion price of $0.20 per share. In connection with the exchange, the Company also issued warrants to purchase 300,000 shares of common stock. The warrants have an exercise price of $0.30 per share and expire three years from the date of issuance.

The fair value of the warrants issued was estimated using the Black-Scholes option pricing model with the following assumptions: an expected term of 3.0 years, stock price of $0.28, exercise price of $0.30, volatility of 204.8%, a risk-free interest rate of 3.69%, and no expected dividends. The estimated fair value per warrant was approximately $0.26.

The issuance of the warrants represented additional consideration to induce the conversion of the note. Accordingly, the Company recognized an inducement charge of approximately $78 during the three months ended March 31, 2026, which is presented as "Inducement charges" in the unaudited condensed consolidated statements of operations.

***Deferred Compensation and Warrant Issuance***

On February 20, 2026, the Company entered into an Exchange and Deferred Compensation Agreement with a former employee and consultant pursuant to which the Company agreed to provide compensation for services previously rendered. Under the terms of the agreement, the Company issued warrants to purchase 22,500 shares of the Company's common stock and agreed to make cash payments totaling $20, payable in five equal monthly installments of $4 beginning March 1, 2026.

The fair value of the warrants issued was estimated using the Black-Scholes option pricing model with the following assumptions: an expected term of 3.0 years, stock price of $0.40, exercise price of $0.35, volatility of 203.3%, a risk-free interest rate of 3.5%, and no expected dividends. The estimated fair value per warrant was $0.37.

Based on these assumptions, the Company recognized stock-based compensation expense of approximately $8 during the three months ended March 31, 2026 related to the issuance of 22,500 warrants.

***Warrants Issued in Connection with Promissory Note***

On February 6, 2026, the Company issued a promissory note in the principal amount of $30 to an investor. In connection with the issuance of the note, the Company issued warrants to purchase 30,000 shares of common stock. The warrants have an exercise price of $0.40 per share, were exercisable upon issuance, and expire three years from the issuance date. The fair value of the warrants was estimated using the Black-Scholes option pricing model with the following assumptions: expected term of 3.0 years, stock price of $0.40, exercise price of $0.40, volatility of 202.8%, risk-free interest rate of 3.6%, and no expected dividends. The estimated fair value per warrant was $0.37.

Based on these assumptions, the total fair value of the warrants was approximately $11, which was recorded as a discount to the note and is being amortized to interest expense over the term of the note.

***March 2025 Private Placement Offering***

On March 18, 2025, the Company entered into a Securities Purchase Agreement with certain investors for a private placement of 2,045,009 units at a purchase price of $0.10 per unit, generating gross proceeds of $205. Each unit consisted of one share of common stock and one warrant to purchase one share of common stock. The warrants were exercisable immediately, expire four years from issuance, and have an exercise price of $0.13 per share.

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In connection with the offering, the Company entered into exchange agreements with Dr. Imhoff and Mr. James, pursuant to which an aggregate of $53 of outstanding principal and accrued interest was exchanged for units issued in the offering. The Company recognized a loss on extinguishment of debt of $32 during the three months ended March 31, 2025 related to these exchanges.

In total, the Company issued 2,571,023 warrants in connection with the offering and related exchange agreements. The fair value of the warrants was estimated using the Black-Scholes option pricing model with an expected term of 4.0 years, stock price of $0.08, exercise price of $0.13, volatility of 191.6%, a risk-free interest rate of 4.0%, and no expected dividends. The estimated allocated value per warrant was $0.04. Proceeds from the offering were allocated between the common stock and warrants based on their relative fair values, and the fair value of warrants issued in the exchange agreements was included in the loss on extinguishment of debt.

**4. STOCK OPTIONS** 

The Company's Stock Plan (the "Plan") provides for the issuance of incentive stock options, nonqualified stock options, and stock purchase rights. The exercise price of options was determined by the Company's board of directors, but incentive stock options were granted at an exercise price equal to the fair market value of the Company's common stock as of the grant date. Options generally vest over three years and expire ten years from the date of grant. The aggregate number of common shares that may be issued or reserved pursuant to stock option or other awards under the plan may not exceed 2,500,000 common shares. During the three months ended March 31, 2026, the Company granted 75,000 stock options under the Plan. As of March 31, 2026, shares available for issuance under the Plan were 648,000.

In addition to awards granted under the Plan, the Company issued stock options outside of the Plan that were approved by the Board of Directors. During the three months ended March 31, 2026, the Company granted 550,000 stock options outside of the Plan. These awards do not reduce the number of shares available for issuance under the Plan.

The following tables summarize the Company's stock option activity and related information for the three months ended March 31, 2026 and 2025. The activity presented includes options granted both under and outside of the Plan:

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|  | **Number** <br>**of Shares**  | **Weighted-Average Exercise Price Per Share**  | **Weighted-Average Remaining Contractual Life**  | **Aggregate Intrinsic Value of In-the-Money Options**<br>**(in thousands)** |
| Options outstanding as of December 31, 2025 | 2827000 | $0.32 | 6.5 years | $476 |
| Options granted | 625000 | $0.29 |  |  |
| Options outstanding as of March 31, 2026 | 3452000 | $0.28 | 7.4 years | $115 |
| Options exercisable as of March 31, 2026 | 2461659 | $0.32 | 6.6 years | $64 |

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|  | **Number** <br>**of Shares**  | **Weighted-Average Exercise Price Per Share**  | **Weighted-Average Remaining Contractual Life**  | **Aggregate Intrinsic Value of In-the-Money Options**<br>**(in thousands)** |
| Options outstanding as of December 31, 2024 | 2883636 | $0.35 | 6.3 years | $- |
| Options outstanding as of March 31, 2025 | 2883636 | $0.35 | 6.0 years | $- |
| Options exercisable as of March 31, 2025 | 2354318 | $0.39 | 5.4 years | $- |

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The aggregate intrinsic value is calculated as the difference between the Company's closing stock price as of March 31, 2026 and the exercise price, multiplied by the number of options. As of March 31, 2026, there was $203 of unrecognized stock-based compensation expense. Such costs are expected to be recognized over a weighted average period of approximately 2.4 years.

During the three months ended March 31, 2026, the Company granted 625,000 stock options with a weighted-average exercise price equal to the closing market price of the Company's common stock on the date of grant. The grant-date fair value of the options was estimated using the Black-Scholes option pricing model with the following assumptions: expected term of 6.1 years, stock price of $0.29, exercise price of $0.29, volatility of 193.4%, risk-free interest rate of 3.8%, and no expected dividends. The weighted-average grant-date fair value of options granted during the period was $0.29. Based on these assumptions, the total grant-date fair value of options granted during the three months ended March 31, 2026 was approximately $178.

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The Company recognizes stock-based compensation expense related to stock options on a straight-line basis over the applicable service period of the award. The service period is generally the vesting period. During the three months ended March 31, 2026 and 2025, the Company recognized expense for stock options of $60 and $19, respectively.

**5. LITIGATION AND CLAIMS** 

From time to time, the Company may be involved in various legal proceedings and claims arising in the ordinary course of business. Management believes that the dispositions of these matters, individually or in aggregate, are not expected to have a material adverse effect on the Company's financial condition. However, depending on the amount and timing of such disposition, an unfavorable resolution of some or all of these matters could materially affect the future results of operations or cash flows in a particular year.

As of March 31, 2026, and December 31, 2025, there was no accrual recorded for any potential losses related to pending litigation.

**6. COMMITMENTS AND CONTINGENCIES** 

**Operating Leases** 

Our corporate office, which includes administrative, research and development, marketing and production facilities, is located in a 12,835 square-foot leased property.

The Company's operating lease was modified in December 2025 to extend the lease term through July 31, 2031. Accordingly, during the year ended December 31, 2025, the Company accounted for the extension as a lease modification and remeasured the related operating lease liability and ROU asset based on the revised lease term. The remeasurement resulted in an increase of $642 to both the operating lease liability and the corresponding ROU asset. The amended lease term now expires on July 31, 2031.

Operating lease cost recognized for this lease was $42 and $27 for the three months ended March 31, 2026 and 2025, respectively. The table below presents total operating lease right-of-use asset and lease liability as of March 31, 2026 and December 31, 2025:

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|:---|:---|:---|
|  | **March 31,** <br>**2026** | **December 31,** <br>**2025** |
| Operating lease right-of-use asset | $663 | $686 |
| Operating lease liability | $685 | $696 |

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The table below presents the maturities of the operating lease liability as of March 31, 2026:

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|:---|:---|
|  | **Operating**<br>**Lease** |
| 2026 (remaining) | 89 |
| 2027 | 169 |
| 2028 | 175 |
| 2029 | 182 |
| 2030 | 190 |
| Thereafter | 114 |
| Total future lease payments | 919 |
| Less: discount | (234) |
| Total lease liabilities | $685 |

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The table below presents the weighted-average remaining lease term and discount rate used in the calculation of the operating lease right-of-use asset and lease liability as of March 31, 2026 and December 31, 2025:

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|:---|:---|:---|
|  | **March 31,**<br>**2026** | **December 31,**<br>**2025** |
| Weighted average remaining lease term (years) | 5.3 | 5.6 |
| Weighted average discount rate | 11.0% | 11.0% |

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Cash paid for the operating lease liability was $30 and $29 during the three months ended March 31, 2026 and 2025, respectively.

**Related Party Contracts**

***Executive Compensation Agreement***

On June 3, 2025, the Company's Board of Directors approved a revised compensation agreement for the Company's Chief Executive Officer ("CEO"), Dr. Mark Faupel. As of March 31, 2026, Dr. Faupel is entitled to:

1. Warrants to purchase an aggregate of 4,000,000 shares of common stock, exercisable upon specified regulatory approvals:

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| 2,500,000 warrants upon receipt of an Approvable Letter from the U.S. FDA for the LuViva Advanced Cervical Scan; |
| 1,500,000 warrants upon receipt of an Approvable Letter or equivalent approval from the Chinese National Medical Products Administration for the LuViva Advanced Cervical Scan. |
| These warrants have an exercise price of $0.40 per share, include a cashless exercise feature, and will expire five years from becoming exercisable, with a maximum term of ten years from issuance. As of March 31, 2026, the Company has concluded it is not probable that the performance conditions related to the above warrants will be achieved; accordingly, no compensation expense related to the warrants has been recorded. |

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2. A warrant to purchase 2,000,000 shares of common stock, exercisable upon filing data from the U.S. pivotal trial with the FDA, with an exercise price of $0.25 per share, including a cashless exercise feature, and expires five years from issuance. The Company concluded in 2025 that achievement of this performance condition was probable and, accordingly, recognized compensation expense of approximately $270 during the year ended December 31, 2025. No additional compensation expense related to this award was recognized during the three months ended March 31, 2026.

Additionally, deferred salary of $374, which had accrued as of May 23, 2025, will continue accruing interest at an annual rate of 6%, and Dr. Faupel's annual compensation was increased to $240 effective June 1, 2025. Up to $100 of this salary may be deferred at Dr. Faupel's discretion, accruing interest at 6%.

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Dr. Faupel's deferred compensation totaled approximately $510 and $473 as of March 31, 2026 and December 31, 2025, respectively. The deferred compensation accrues interest at a rate of 6% and is convertible at his option into common stock at a conversion price of $0.25 per share. All amounts owed to Dr. Faupel are payable within ten business days if his position as Chief Executive Officer is terminated by the Board.

Because settlement into equity is at the employee's election, the conversion feature does not qualify for equity classification and is accounted for as a liability-classified award under ASC 718. Accordingly, the conversion feature is measured at fair value at each reporting date, with changes in fair value recognized as compensation cost or a reduction thereof in the condensed consolidated statements of operations.

During the year ended December 31, 2025, the fair value of the conversion feature was determined based on its intrinsic value, representing the excess of the Company's closing stock price over the $0.25 conversion price. Accordingly, the Company recognized $548 of compensation expense during 2025 and recorded a corresponding liability classified as "Deferred compensation conversion liability, at fair value" on the condensed consolidated balance sheets.

During the three months ended March 31, 2026, the Company's stock price fell below the $0.25 conversion price, rendering the feature out-of-the-money. Accordingly, the fair value was estimated using the Black-Scholes option pricing model, which captures the remaining time value of the conversion right. The model utilized an expected term of approximately 1.5 years, stock price of $0.23, exercise price of $0.25, volatility of 172.7%, risk-free interest rate of 3.7%, and no expected dividends. The total estimated fair value of the conversion feature was approximately $331 as of March 31, 2026.

As a result of the remeasurement, the Company recognized a reduction in compensation cost of approximately $217 during the three months ended March 31, 2026, presented as "Gain on remeasurement of deferred compensation conversion liability" in the unaudited condensed consolidated statements of operations.

***Related Party Debt***

See Note 9, "*Related Party Debt"* for details regarding debt issued to related parties.

***Advisory Services Agreement***

The Company has an ongoing consulting arrangement with Ironstone Capital Corp. (the "Advisory Group") and Alan Grujic to provide marketing and investor relations services. Under the current agreement, the Company pays the Advisory Group a monthly fee of $2,500, which has been extended through July 31, 2026.

Expense recognized under this arrangement was $8 and $8 for the three months ended March 31, 2026 and 2025, respectively.

***Other Commitments***

On January 22, 2017, we entered into a license agreement with Shandong Yaohua Medical Instrument Corporation ("SMI"), as amended on March 28, 2017, pursuant to which we granted SMI an exclusive global license to manufacture the LuViva device and related disposables (subject to a carve-out for manufacturing in Turkey). On December 18, 2018, we entered into a co-development agreement with Newmars Technologies, Inc. ("NTI"), whereby NTI performs final assembly of the LuViva device for its contracted distribution countries in Eastern Europe and Russia at its ISO 13485 facility in Hungary. This additional carve-out was agreed to by SMI.

The Company then entered into several amendments to the SMI agreement, the most recent of which was executed on May 8, 2025. During the three months ended March 31, 2025, the Company and SMI agreed to apply previous payments of $180 towards reimbursement of expenses the Company incurred in prior periods. As a result of this agreement, the Company recognized $180 of deferred revenue in income, which is included in "Other income" during the three months ended March 31, 2025.

During the fourth quarter of 2025, SMI failed to fulfill certain obligations under the agreement and consequently lost its rights to manufacture and distribute LuViva in China.

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Following the May 2025 amendment, we entered into a purchase agreement with HDMT for 35 LuViva devices (without rolling carts) totaling $700. As of March 31, 2026, seven devices have been paid for and shipped in prior periods, and four additional units have been completed and passed quality testing. We have invoiced HDMT and are awaiting payment for these four devices. Additionally, on November 11, 2025, we entered into a purchase agreement with YMIC for $200 of LuViva parts and components used in our single-use cervical guides. As of March 31, 2026, this order remains in process and is pending agreement on which parts YMIC will be receiving and which parts YMIC will be paying for directly for the timing and amount of their initial payment.

Although SMI continues to work with partners in China to pursue NMPA approval, we are no longer obligated to work with SMI and have instead increased our engagement with HDMT and YMIC.

**Contingencies**

The conflict in Ukraine, which has already affected global financial markets, continues to create uncertainty that could impact the Company's operating business. Although approval to market and sell the Company's products in Russia was granted on August 11, 2025, ongoing geopolitical tensions could still disrupt supply chains, distribution activities, or future regulatory interactions within the region. The ultimate impact of the conflict remains highly uncertain, and the Company cannot provide assurance that it will not have a material adverse effect on its operations, financial condition, or future regulatory matters.

Recent conflicts and heightened geopolitical tensions in the Middle East have contributed to increased uncertainty in global financial markets and may result in volatility in commodity prices, including oil and natural gas, as well as disruptions to international trade routes. Any escalation or expansion of these conflicts could adversely affect global supply chains, increase transportation and energy costs, and create additional regulatory or economic uncertainty. While the conflicts had no direct effect on us in the first quarter of 2026, the indirect effects of continued instability could adversely impact the Company's operations, financial condition, and results of operations.

In 2025, the U.S. government invoked the International Emergency Economic Powers Act ("IEEPA") to impose broad tariffs on imports from China and other trading partners, creating significant uncertainty with respect to future tax and trade regulations and the potential competitive effects of such actions. On February 20, 2026, the U.S. Supreme Court ruled 6-3 that IEEPA does not authorize the imposition of tariffs, and all IEEPA-based tariffs were terminated effective February 24, 2026. Following the ruling, the administration announced a 10% global tariff under Section 122 of the Trade Act of 1974, which is set to expire on July 23, 2026, absent further action.

The Company's primary exposure to tariff-related risk arises not from U.S. import tariffs but from China's retaliatory trade measures and broader geopolitical and trade uncertainty, given that the Company's revenue is derived primarily from the sale of medical devices to customers in China. Although the countries in which our products are manufactured or imported may from time to time impose additional quotas, duties, tariffs, or other restrictions, or adversely modify existing ones, we have established an auxiliary manufacturing site in Hungary. This strategic initiative helps mitigate our exposure to tariffs targeting Chinese imports and limits the overall impact on our operations. Nevertheless, it remains unclear what the U.S. administration or foreign governments will do with respect to tariffs, tax policies, or other international trade agreements going forward. A trade war, other governmental actions related to tariffs or international trade agreements, or changes in U.S. or foreign social, political, regulatory and economic conditions—especially as they relate to manufacturing and investment—could materially adversely affect the Company's business, financial condition, operating results, and cash flows.

**7. NOTES PAYABLE**

**Short-term Promissory Notes**

On February 6, 2026, the Company issued a $30 promissory note to an investor. The note bears interest of $2.4 over its term and matures on January 1, 2027, with principal payable in monthly installments beginning March 1, 2026. In connection with the issuance of the note, the Company issued warrants to purchase 30,000 shares of common stock with an exercise price of $0.40 per share. The warrants were issued on February 6, 2026 and expire three years from the issuance date.

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The fair value of the warrants was estimated using the Black-Scholes option pricing model with an expected term of 3.0 years, stock price of $0.40, exercise price of $0.40, volatility of 202.8%, risk-free interest rate of 3.6%, and no expected dividends. The proceeds from the issuance of the note and warrants were allocated between the debt and the warrants on a relative fair value basis. Based on this allocation, approximately $11 was recorded as a debt discount and is being amortized to interest expense over the term of the note.

As of March 31, 2026, the outstanding principal balance of the note was $27, accrued interest totaled approximately $1, and the unamortized debt discount related to the warrants was approximately $9.

On July 4, 2025, the Company entered into a premium finance agreement to finance its insurance policies totaling $125. Monthly payments are due under the agreement, including interest at a rate of 8.8%. The note matures on May 4, 2026.

As of March 31, 2026, the outstanding balance under this agreement was $23, which is included in "Current portion of notes payable" on the condensed consolidated balance sheets. As of December 31, 2025, the outstanding balance was $58.

**Long-term Promissory Notes**

On April 15, 2024, the Company entered into an exchange agreement with a former employee, whereby the former employee agreed to exchange outstanding amounts due for deferred compensation of $82 for an $87 promissory note. Beginning on May 5, 2024, monthly payments of $2 are due on the note until its maturity date of May 5, 2028. The note accrues interest at a rate of 6.0% per annum.

As of March 31, 2026, the outstanding principal balance of the promissory note was $41, of which $24 is included in "Short-term notes payable" and $17 is included in "Long-term notes payable" on the unaudited condensed consolidated balance sheets. Accrued interest on the promissory note totaled $8 as of March 31, 2026. As of December 31, 2025, the outstanding principal balance was $47, of which $24 was classified as short-term and $23 as long-term. Accrued interest totaled $7 as of December 31, 2025.

The following tables summarize notes payable:

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| | | |
|:---|:---|:---|
|  | **March 31,** <br>**2026** | **December 31,** <br>**2025** |
| Short-term promissory notes | $27 | $- |
| Deferred compensation note | 41 | 47 |
| Insurance policy financing | 23 | 58 |
| Debt discount | (9) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 82 | 105 |
| Less: Current portion of notes payable | (65) | (82) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total long-term notes payable** | $17 | $23 |

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Future debt obligations at March 31, 2026 for notes payable are as follows:

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| | |
|:---|:---|
| 2026 (remaining) | 68 |
| 2027 | 23 |
| Total | $91 |

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**8. CONVERTIBLE DEBT** 

**10% Senior Unsecured Convertible Debenture**

On May 17, 2021, the Company issued 10% senior unsecured convertible debentures with an aggregate principal amount of $1,130. The debentures matured on May 17, 2024 and remain outstanding. The principal and accrued interest are convertible, at the holder's option, into shares of common stock at a conversion price of $0.50 per share, subject to adjustment in certain events. Interest accrues at a rate of 10% per annum, compounded quarterly, and is payable in cash or shares of common stock at the Company's option. Upon obtaining approval to list or quote the Company's common stock on a national exchange or market, the Company may require the debentures to convert into shares of common stock immediately prior to such uplisting; however, if the Company conducts a financing in connection with the uplisting, the holder may elect to exchange the debentures for the securities issued in that financing.

If a Change of Control (as defined in the Convertible Debenture Certificate) occurs prior to repayment, the Company must repay all outstanding principal and accrued interest plus a premium equal to 3% of the outstanding principal, unless the holder elects to convert the debentures into shares of common stock at the Conversion Price immediately prior to the effective date of the Change of Control.

As of March 31, 2026 and December 31, 2025, the outstanding principal balance was $1,130. Accrued interest totaled $155 and $104 as of March 31, 2026 and December 31, 2025, respectively. Following the maturity date, the debentures bear interest at a default rate of 18.0% per annum. The debentures are currently in default and are classified as "Short-term convertible notes payable in default" on the unaudited condensed consolidated balance sheets.

**Convertible Promissory Notes**

The following table summarizes convertible promissory notes outstanding:

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| | | |
|:---|:---|:---|
|  | **March 31,** <br>**2026** | **December 31,** <br>**2025** |
| Convertible promissory notes | $358 | $447 |
| Unamortized debt issuance costs | (15) | (17) |
| Debt discount | (59) | (63) |
| Less: convertible debt in default | (20) | (20) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Convertible promissory notes** | $**264** | $**347** |

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***1800 Diagonal Lending LLC Notes***

During 2025 and the three months ended March 31, 2026, the Company entered into multiple securities purchase agreements with 1800 Diagonal Lending LLC ("Diagonal Lending") and issued a series of contingently convertible promissory notes (the "Diagonal Notes").

On April 1, 2025 and May 1, 2025, the Company issued notes with principal balances of $150 and $121, respectively. These notes matured on January 30, 2026 and February 28, 2026, respectively, and were repaid in accordance with their terms.

On October 3, 2025, the Company issued an additional note with a principal balance of $123 and an original issue discount of $16, resulting in net proceeds of $107. The note includes a one-time interest charge of 12% applied on the issuance date, resulting in total amounts due of $138, and matures on July 30, 2026. The note is payable in five scheduled installments, with the first payment of $69 due March 30, 2026, followed by four equal monthly payments of $17 through the maturity date. The Company has the right to accelerate or prepay the note in full at any time without penalty. The note is contingently convertible into shares of common stock only upon an event of default, at a conversion price equal to 65% of the lowest trading price of the Company's common stock during the ten trading days prior to conversion, subject to a 4.99% beneficial ownership limitation.

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On January 8, 2026, the Company issued a note with a principal balance of $158 and an original issue discount of $21, resulting in net proceeds of $137. The note includes a one-time interest charge of 12% applied on the issuance date, resulting in total amounts due of $176, and matures on November 15, 2026. The note is payable in five scheduled installments, with the first payment of $88 due July 15, 2026, followed by four equal monthly payments of $22 through the maturity date. The Company has the right to accelerate or prepay the note in full at any time without penalty. The note is contingently convertible into shares of common stock only upon an event of default, at a conversion price equal to 65% of the lowest trading price of the Company's common stock during the ten trading days prior to conversion, subject to a 4.99% beneficial ownership limitation.

The Diagonal Notes contain conversion features that become exercisable upon the occurrence of an event of default and provide for settlement at a variable conversion price based on market conditions. The Company evaluated these features and determined that they meet the definition of derivative instruments and are not clearly and closely related to the host debt. Accordingly, the conversion features were bifurcated and accounted for as derivative liabilities. The derivative liabilities are initially recorded at fair value and remeasured at each reporting date, with changes in fair value recognized in earnings (see Note 11 for additional information on fair value measurements).

The Diagonal Notes contain customary covenants, including restrictions on the disposition of significant assets. Upon an event of default, amounts outstanding under the Diagonal Notes become immediately due and payable at 150% of the then-outstanding balance, including accrued and unpaid interest. In addition, upon an event of default, the holder may elect to convert all or any portion of the outstanding balance into shares of common stock at the variable conversion price described above.

As of March 31, 2026, the aggregate outstanding principal balance of the Diagonal Notes was $222, with accrued interest of $9. Unamortized debt discounts and issuance costs totaled approximately $43. As of December 31, 2025, the aggregate outstanding principal balance was $175, with accrued interest of $7 and unamortized debt discounts and issuance costs of approximately $33. The Diagonal Notes that remain outstanding are included in "Short-term convertible notes payable, net of discounts" on the condensed consolidated balance sheets.

***GS Capital Partners, LLC Convertible Note***

On December 30, 2025, the Company issued an unsecured promissory note to GS Capital Partners, LLC ("GS Capital") with a principal balance of $69 and an original issue discount of $6, resulting in net proceeds of approximately $63. The note includes a one-time guaranteed interest charge of 12% applied on the issuance date and added to the principal balance, resulting in total amounts due of $77, and matures on December 30, 2026. The outstanding principal is payable in six monthly installments of approximately $13 each, commencing on the 181st day following the issuance date and continuing monthly thereafter, with all remaining principal and interest due at maturity. The Company has the right to prepay the note in whole or in part at any time. Upon an event of default, amounts outstanding become immediately due and payable at 150% of the then-outstanding balance, and default interest accrues at 24% per annum.

In connection with the issuance of the GS Capital note on December 30, 2025, the Company issued warrants to purchase 20,000 shares of common stock. The warrants are exercisable at a price equal to the closing price of the Company's common stock on the issuance date ($0.54 per share) and expire on December 31, 2027. The warrants are exercisable at any time following issuance and do not include a cashless exercise feature.

The Company allocated the proceeds from the issuance of the note and warrants between the debt and the warrant based on their relative fair values. The fair value of the warrants was estimated using the Black-Scholes option pricing model with the following assumptions: expected term of 2.0 years, stock price of $0.54, exercise price of $0.54, volatility of 186.5%, risk-free interest rate of 3.5%, and no expected dividends. The estimated fair value per warrant was $0.44. Based on this allocation, the Company recorded a debt discount of approximately $9 related to the warrant, which is being amortized to interest expense over the term of the note using the effective interest method.

The note contains a conversion feature that becomes exercisable upon an event of default and provides for settlement at a variable conversion price equal to 65% of the lowest trading price of the Company's common stock during the fifteen trading days prior to conversion. The Company evaluated this feature and determined that it meets the definition of a derivative instrument and is not clearly and closely related to the host debt. Accordingly, the conversion feature was bifurcated and accounted for as a derivative liability, initially recorded at fair value and remeasured at each reporting date, with changes in fair value recognized in earnings (see Note 11 for additional information on fair value measurements).

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The GS Capital note contains customary covenants, including restrictions on asset dispositions, stock repurchases, and certain lending activities, as well as a cross-default provision and a most favored nations clause that adjusts the conversion price and other economic terms on a ratchet basis if the Company offers more favorable terms to another party.

As of March 31, 2026, the outstanding principal balance of the GS Capital note was $69, with accrued interest of $3. Unamortized debt discounts and issuance costs totaled approximately $21.

As of December 31, 2025, the outstanding principal balance was $69, with accrued interest of nil. Unamortized debt discounts and issuance costs totaled approximately $27.

***Labrys Fund II Convertible Note***

On August 27, 2025, the Company issued a convertible promissory note to Labrys Fund II, L.P. ("Labrys") with a principal balance of $108 and an original issue discount of $10, resulting in net proceeds of $98. The note bears total interest of $11 and matures on August 27, 2026. The note is unsecured and may not be prepaid except as provided in its terms.

The note contains a conversion feature that becomes exercisable upon an event of default or missed payment and provides for settlement at a variable conversion price equal to 75% of the average of the two lowest closing prices of the Company's common stock during the ten trading days preceding conversion, subject to customary adjustments.

The Company evaluated the embedded conversion feature and determined that it meets the definition of a derivative instrument and is not clearly and closely related to the host debt. Accordingly, the conversion feature was bifurcated and accounted for as a derivative liability, initially recorded at fair value as a debt discount and remeasured at each reporting date, with changes in fair value recognized in earnings.

As of March 31, 2026, the outstanding principal balance of the note was $47, with accrued interest of $1. Unamortized debt discounts and issuance costs totaled approximately $10. As of December 31, 2025, the note remained outstanding in full with a principal balance of $108 and unamortized debt discounts and issuance costs of approximately $16.

The note is included in "Short-term convertible notes payable" on the unaudited condensed consolidated balance sheets.

***Auctus Convertible Note***

On December 17, 2019, the Company issued a convertible promissory note to Auctus Fund, LLC ("Auctus"). The note provided for variable conversion prices based on a discount to market and bears default interest upon an event of default.

On September 1, 2022, the Company entered into an Exchange Agreement with Auctus pursuant to which certain outstanding debt and equity instruments were restructured. Following the exchange, the remaining balance was payable in installments. During 2024, Auctus agreed that payments would be applied first to principal. The note remains in default and continues to accrue interest.

As of March 31, 2026 and December 31, 2025, the outstanding principal balance of the convertible note was $20. Accrued interest totaled $152 and $144 as of March 31, 2026 and December 31, 2025, respectively.

The note is included in "Short-term convertible notes payable in default" on the condensed consolidated balance sheets.

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***Other Convertible Promissory Notes***

On May 2, 2025, the Company issued a promissory note with a principal balance of $75 to an unaffiliated third party. The note accrued interest at a rate of 12.0% per annum and matured on May 2, 2026. During the three months ended March 31, 2026, the Company entered into an exchange agreement with the holder of the note, pursuant to which the holder agreed to convert the outstanding principal balance of $75 and accrued interest of $8 into 414,082 shares of the Company's common stock at a conversion price of $0.20 per share.

In connection with the exchange, the Company issued warrants to purchase 300,000 shares of common stock as an inducement to convert the note. The issuance of these warrants represented additional consideration to the holder and resulted in the recognition of an inducement charge of approximately $78 during the three months ended March 31, 2026, which is presented as "Inducement charges" in the condensed consolidated statements of operations.

As a result of the conversion, the note was fully extinguished during the three months ended March 31, 2026.

**9. RELATED PARTY DEBT**

The following table summarizes notes payable due to related parties:

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| | | |
|:---|:---|:---|
|  | **Notes Payable Due to Related Parties** | **Notes Payable Due to Related Parties** |
|  | **March 31,** <br>**2026** | **December 31,** <br>**2025** |
| Executive deferred compensation notes | $494 | $491 |
| Contingently convertible promissory note | 110 | 150 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 604 | 641 |
| Less: Current portion of notes payable due to related parties | (430) | (621) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total long-term notes payable due to related parties** | $174 | $20 |

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Future debt obligations at March 31, 2026 for debt owed to related parties are as follows:

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| | |
|:---|:---|
| 2026 (remaining) | 430 |
| 2027 | 174 |
| Total | $604 |

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***Executive Deferred Compensation Notes Payable***

The Company has outstanding promissory notes payable to Dr. Mark Faupel, Chief Executive Officer, and Dr. Gene Cartwright, former Chief Executive Officer, related to previously deferred compensation and other obligations. These notes were originally issued in 2018 and subsequently restructured and amended on multiple occasions. Dr. Faupel's note, which had a prior maturity date of February 19, 2026, was extended pursuant to a new promissory note dated April 30, 2026, with terms retroactively applied as of February 19, 2026 and a new maturity date of August 18, 2027. Accordingly, Dr. Faupel's note is classified as long-term as of March 31, 2026 and is not considered past due as of March 31, 2026. Dr. Cartwright's note, which had a maturity date of February 18, 2023, remains past due as of March 31, 2026 and continues to accrue interest.

On August 27, 2025, the Company entered into an agreement with Dr. Faupel to exchange $25 of outstanding principal for 138,889 shares of common stock and warrants to purchase 138,889 shares of common stock. The warrants are exercisable at $0.25 per share and expire four years from the issuance date. In connection with this transaction, the Company recognized a loss on extinguishment of debt of $51 during the year ended December 31, 2025.

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Dr. Faupel's note bears interest at 6% per annum and matures on August 18, 2027, subject to mandatory acceleration if the Company raises or holds at least $4.0 million in financing proceeds or cash on hand at the end of any quarter during the note term.

As of March 31, 2026, the aggregate outstanding balance of the notes was $495, including accrued interest of $116, of which $174 representing Dr. Faupel's note is classified as long-term and included in "Long-term debt, related parties" on the condensed consolidated balance sheets, with the remainder included in "Current portion of notes payable due to related parties." As of December 31, 2025, the aggregate outstanding principal balance was $489, including accrued interest of $111, all of which is included in "Current portion of notes payable due to related parties" on the condensed consolidated balance sheets.

On March 22, 2021, the Company entered into an exchange agreement with a former executive, pursuant to which a portion of previously deferred compensation was converted into an unsecured promissory note, with the remaining balance continuing as deferred compensation. During the three months ended March 31, 2026, the remaining deferred compensation balance was forgiven by the creditor. As of March 31, 2026, there was no outstanding balance under either the promissory note or deferred compensation arrangement. As of December 31, 2025, the outstanding principal balance of the note was $2 and the remaining deferred compensation balance was $3. The note was included in "Current portion of notes payable due to related parties" on the condensed consolidated balance sheets.

***Other Notes Payable Issued to Related Parties***

On September 25, 2025, the Company issued a $160 contingently convertible promissory note to Dr. John Imhoff. The note bears simple interest at 10% per annum and matures on February 28, 2027. Beginning November 30, 2025, the Company is required to make monthly payments of $10 plus accrued interest until maturity.

If the Company fails to make a required payment, the holder may elect to convert the unpaid balance, including accrued interest, into shares of common stock at a conversion price of $0.07 per share if the 10-day VWAP is below $0.50, or $0.14 per share if the 10-day VWAP is $0.50 or higher. The Company may prepay the note at any time without penalty with the holder's written consent.

During the year ended December 31, 2025, the holder converted $10 of principal and $4 of accrued interest into 195,460 shares of common stock at a conversion price of $0.07 per share. During the three months ended March 31, 2026, the holder converted an additional $40 of principal and $4 of accrued interest into 626,223 shares of common stock. With the mutual agreement of the Company, these conversions were completed in lieu of scheduled principal payments, and the Company was not in default under the note.

**10. INCOME (LOSS) PER SHARE OF COMMON STOCK**

Basic net income (loss) per share attributable to common stockholders, amounts are computed by dividing the net income (loss) plus preferred stock dividends and deemed dividends on preferred stock by the weighted average number of shares outstanding during the year.

Diluted net income (loss) per share attributable to common stockholders amounts are computed by dividing the net income (loss) plus preferred stock dividends, deemed dividends on preferred stock, after-tax interest on convertible debt and convertible dividends by the weighted average number of shares outstanding during the year, plus convertible preferred stock, convertible debt, convertible preferred dividends, warrants and stock options convertible into common stock shares.

During a period of net loss, basic and diluted earnings per share are the same as the assumed exercise of warrants and the conversion of convertible debt and preferred stock are anti-dilutive. For the three months ended March 31, 2026 and 2025, all stock options, convertible preferred stock, convertible debt, convertible deferred compensation and warrants were anti-dilutive and were therefore excluded from the computation of diluted loss per share. At March 31, 2026 and 2025, these instruments were convertible into 45,552,594 and 57,677,477 common shares, respectively.

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The following table sets forth pertinent data relating to the computation of basic and diluted net loss per share attributable to common shareholders:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended**<br>**March 31,** | **Three Months Ended**<br>**March 31,** |
|  | **2026** | **2025** |
| **Net loss attributable to common shareholders** | (1013) | (463) |
| Basic weighted average number of shares outstanding | 88836 | 68291 |
| **Net loss per share attributable to common shareholders (basic)** | (0.01) | (0.01) |
| Diluted weighted average number of shares outstanding | 88836 | 68291 |
| **Net loss per share attributable to common shareholders (diluted)** | (0.01) | (0.01) |

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**11. FAIR VALUE MEASUREMENTS**

The Company measures certain liabilities at fair value on a recurring basis, including derivative liabilities arising from bifurcated conversion features on convertible debt instruments accounted for under ASC 815, and a deferred compensation conversion liability classified under ASC 718. Both are considered Level 3 measurements within the fair value hierarchy established by ASC 820.

**Derivative Liabilities — ASC 815**

The convertible notes payable derivative liabilities are considered Level 3 measurements due to the significant unobservable inputs in the valuation, which are based on a forecast of the Company's future stock performance and, as the note payable is contingently convertible upon an event of default, management's estimate of the likelihood and timing of conversion.

Management utilized a pricing model simulation based on the terms of the bifurcated conversion features, which projects potential future stock prices using the Company's historical volatility. The model estimates a variable conversion price as of an assumed future conversion date, based on management's best estimate of the timing and probability of conversion.

The key inputs to the valuation model that was utilized to estimate the fair value of the bifurcated conversion option included:

· The forecasted future stock prices were determined using historical stock prices and the Company's equity volatility.

· The expected conversion price was determined using the forecast and the contractual term of the convertible note agreements.

· The probability of an event of default and timing of a future conversion are based on management's best estimate of the future settlements of the convertible notes.

**Deferred Compensation Conversion Liability — ASC 718**

The deferred compensation conversion liability represents the fair value of the conversion feature embedded in the CEO's deferred compensation arrangement, which is classified as a liability under ASC 718 because settlement into common stock is at the employee's election. The fair value is estimated using the Black-Scholes option pricing model at each reporting date.

While several inputs to the Black-Scholes model are observable — including the Company's stock price, historical volatility, and the risk-free rate — the expected term represents a significant unobservable input, as it requires management's estimate of when the employee will elect to convert. The significance of the expected term assumption is further heightened by the fact that as of March 31, 2026, the conversion feature is out-of-the-money, with the Company's stock price of $0.23 below the $0.25 conversion price. As a result, the fair value of the feature is driven primarily by time value rather than intrinsic value, making the expected term the most significant input to the measurement. Accordingly, the liability is classified as Level 3 within the fair value hierarchy.

The key inputs as of March 31, 2026 were as follows: expected term of approximately 1.5 years, stock price of $0.23, conversion price of $0.25, volatility of 172.7%, risk-free interest rate of 3.7%, and no expected dividends. The resulting estimated fair value was approximately $331 as of March 31, 2026.

The following table presents the fair value of liabilities measured at fair value on a recurring basis as of March 31, 2026:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Derivative liability - bifurcated conversion options  | $- | $- | $37 | $37 |
| Deferred compensation conversion liability |  |  | $331 | $331 |
| **Total short-term liabilities at fair value** | $**-** | $**-** | $**368** | $**368** |

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The following table presents the fair value of liabilities measured at fair value on a recurring basis as of December 31, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Derivative liability - bifurcated conversion options  | $- | $- | $37 | $37 |
| Deferred compensation conversion liability |  |  | $548 | $548 |
| **Total short-term liabilities at fair value** | $**-** | $**-** | $585 | $585 |

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Derivative financial instruments and changes thereto recorded in the three months ended March 31, 2026 and 2025 include the following:

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|:---|:---|:---|
|  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  |
|  | **2026** | **2025** |
| **Fair value, beginning of period** | $37 | $118 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inception of derivative liability | 13 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of beneficial conversion features | (13) | (52) |
| **Fair value, end of period** | $**37** | $**66** |

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The following table presents activity in the deferred compensation conversion liability for the three months ended March 31, 2026 (no comparative period presented as the liability was first recognized during the year ended December 31, 2025):

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| | |
|:---|:---|
| **Fair value, beginning of period** | $548 |
| Remeasurement gain recognized in operations | (217) |
| **Fair value, end of period** | $**331** |

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**12. SEGMENT REPORTING**

The Company is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment. The Company's principal decision maker is the Chief Executive Officer and acting Chief Financial Officer. Management believes that its business operates as one reportable segment because: a) the Company measures profit and loss as a whole; b) the principal decision maker does not review information based on any operating segment; c) the Company does not maintain discrete financial information on any specific segment; d) the Company has not chosen to organize its business around different products and services, and e) the Company has not chosen to organize its business around geographic areas. Since the Company operates as one operating segment, financial segment information, including profit or loss and asset information, can be found in the consolidated financial statements.

**13. SUBSEQUENT EVENTS** 

**Extension of Note Payable to Chief Executive Officer**

On April 30, 2026, the Company entered into a new promissory note with Dr. Mark Faupel, Chief Executive Officer, in the principal amount of $134, extending the maturity of a previously outstanding note that had matured on February 19, 2026. The new note bears interest at 6% per annum, with terms retroactively applied as of February 19, 2026, and matures on August 18, 2027. The note is subject to mandatory acceleration and becomes immediately due and payable in full if the Company raises at least $4.0 million in a single financing transaction or has a minimum of $4.0 million in cash on hand at the end of any fiscal quarter during the note term.

**Issuance of Common Stock for Payment of Series F-2 Preferred Stock Dividends**

On April 1, 2026, the Company issued 5,663 shares of common stock for payment of dividends on its Series F-2 Preferred Stock. On April 6, 2026, the Company issued 23,291 shares of common stock for payment of dividends on its Series F-2 Preferred Stock. The unregistered shares were issued in reliance on exemptions from registration under Section 4(a)(2) of the Securities Act of 1933, as amended, and/or Regulation D promulgated thereunder.

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**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

**FORWARD-LOOKING STATEMENTS**

In addition to historical information, this Quarterly Report on Form 10-Q may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act), which provides a "safe harbor" for forward-looking statements made by us. All statements, other than statements of historical facts, including statements concerning our plans, objectives, goals, beliefs, business strategies, future events, business conditions, results of operations, financial position, business outlook, business trends, and other information, may be forward-looking statements. Words such as "might," "will," "may," "should," "estimates," "expects," "continues," "contemplates," "anticipates," "projects," "plans," "potential," "predicts," "intends," "believes," "forecasts," "future," and variations of such words or similar expressions are intended to identify forward-looking statements. The forward-looking statements are not historical facts, and are based upon our current expectations, beliefs, estimates and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond our control. Our expectations, beliefs, estimates, and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs, estimates, and projections will occur or can be achieved and actual results may vary materially from what is expressed in or indicated by the forward-looking statements.

These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or anticipated results, including those that may be set forth under "Risk Factors" below and elsewhere in this report, as well as in our annual report on Form 10-K for the year ended December 31, 2025 and this quarterly report on Form 10-Q. Examples of these uncertainties and risks include, but are not limited to:

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| access to sufficient debt or equity capital to meet our operating and financial needs; |
| the extent of dilution of the holdings of our existing stockholders upon the issuance, conversion or exercise of securities issued as part of our capital raising efforts; |
| the extent to which certain debt holders may call the notes to be paid; |
| the effectiveness and ultimate market acceptance of our products and our ability to generate sufficient sales revenues to sustain our growth and strategy plans; |
| whether our products in development will prove safe, feasible and effective; |
| whether and when we or any potential strategic partners will obtain required regulatory approvals in the markets in which we plan to operate; |
| our need to achieve manufacturing scale-up in a timely manner, and our need to provide for the efficient manufacturing of sufficient quantities of our products; |
| the lack of immediate alternate sources of supply for some critical components of our products; |
| our ability to establish and protect the proprietary information on which we base our products, including our patent and intellectual property position;  |
| the impact of the conflict between Russia and Ukraine on economic conditions in general and on our business operations; |
| the need to fully develop the marketing, distribution, customer service and technical support and other functions critical to the success of our product lines; |
| the dependence on potential strategic partners or outside investors for funding, development assistance, clinical trials, distribution and marketing of some of our products; and |
| other risks and uncertainties described from time to time in our reports filed with the SEC. |

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These forward-looking statements reflect our management's beliefs and views with respect to future events and are based on estimates and assumptions as of the date of this filing and are subject to risks and uncertainties. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Given these uncertainties, you should not place undue reliance on these forward-looking statements.

Forward-looking statements speak only as of the date the statements are made. We assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect thereto or with respect to other forward-looking statements.

The following discussion should be read in conjunction with our financial statements and notes thereto included elsewhere in this report.

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**OVERVIEW**

We are a medical technology company focused on developing innovative medical devices that have the potential to improve healthcare. Our primary focus is the sales and marketing of our LuViva® Advanced Cervical Scan non-invasive cervical cancer detection device. The underlying technology of LuViva primarily relates to the use of biophotonics for the non-invasive detection of cancers. LuViva is designed to identify cervical cancers and precancers painlessly, non-invasively and at the point of care by scanning the cervix with light, then analyzing the reflected and fluorescent light.

LuViva provides a less invasive and painless alternative to conventional tests for cervical cancer screening and detection. Additionally, LuViva improves patient well-being not only because it eliminates pain, but also because it is convenient to use and provides rapid results at the point of care. We focus on two primary applications for LuViva: first, as a cancer screening tool in the developing world, where infrastructure to support traditional cancer-screening methods is limited or non-existent, and second, as a triage following traditional screening in the developed world, where a high number of false positive results cause a high rate of unnecessary and ultimately costly follow-up tests.

We are a Delaware corporation, originally incorporated in 1992 under the name "SpectRx, Inc." and, on February 22, 2008, changed our name to Guided Therapeutics, Inc. At the same time, we renamed our wholly owned subsidiary, InterScan, which originally had been incorporated as "Guided Therapeutics."

Since our inception, we have raised capital through the public and private sale of debt and equity, funding from collaborative arrangements, and grants.

Our prospects must be considered in light of the substantial risks, expenses and difficulties encountered by entrants into the medical device industry. This industry is characterized by an increasing number of participants, intense competition and a high failure rate. We have experienced operating losses since our inception in 1992 as SpectRx, Inc. and, as of March 31, 2026, we have an accumulated deficit of approximately $158.0 million. To date, we have engaged primarily in research and development efforts and the early stages of marketing our products. We do not have significant experience in manufacturing, marketing or selling our products. We may not be successful in growing sales for our products. Moreover, required regulatory clearances or approvals, described below, may not be obtained in a timely manner, or at all. Our products may not ever gain market acceptance and we may not ever generate significant revenues or achieve profitability. The development and commercialization of our products requires substantial development, regulatory, sales and marketing, manufacturing and other expenditures. We expect our operating losses to continue for the foreseeable future as we continue to expend substantial resources to complete commercialization of our products, obtain regulatory clearances or approvals, build our marketing, sales, manufacturing and finance capabilities, and conduct further research and development.

Our product revenues to date have been limited. Our historical and expected future revenue has been and will be derived from sales of LuViva devices and disposables.

**Current Demand for LuViva**

Based on existing purchase orders and ongoing discussions with potential customers and partners, we expect potential sales of approximately $1.0 million within the next twelve months. We cannot be assured that we will generate all or any of these additional purchase orders, or that existing orders will not be canceled by the distributors or that parts to build product will be available to meet demand, such that existing orders will result in actual sales, in part because demand for LuViva is contingent upon Chinese regulatory approval which has not yet been achieved. Because we have a short history of sales of our products, we cannot confidently predict future sales of our products beyond this time frame and cannot be assured of any particular number of sales. Accordingly, we have not identified any particular trends with regard to sales of our products. In order to increase demand for LuViva, we are focused on three primary markets: the United States, China and Europe. In addition, we have recently received sales orders from Turkey and Indonesia, for which we have received the necessary regulatory approvals and are preparing to fulfill. These orders are expected to result in approximately $200,000 in revenue for 2026. The amount may be lower depending on whether YMIC pays directly for some of the parts due to the origin of manufacture in China. We expect payment once this is resolved. When combined with sales to our Chinese partner, these constitute what we view as the current demand for our products.

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We have not yet obtained clearance or approval from the U.S. FDA. However, we have completed patient enrollment in the clinical trial required to support an application for FDA approval to market and sell LuViva in the United States. As of April 2026, the status of the FDA application is as follows:

1. Approximately 480 patients were enrolled, of whom 428 were evaluable for efficacy analysis. Both totals satisfy the a priori criteria as set forth in the study protocol.

2. No adverse events related to the use of LuViva have been reported.

3. All four clinical study sites adhered to the study protocol and completed required case report forms in accordance with FDA standards.

4. Close-out activities have been completed at all sites, and all LuViva devices have been retrieved in good working order.

5. All pathology results have been received and data analysis has been completed.

6. We expect to file the clinical results with FDA in the second quarter of 2026. We believe the results exceed those expected by FDA, thus increasing the likelihood of approval. However, we cannot be certain that FDA approval will occur.

For us to market our products in Europe and some other international jurisdictions, we and our distributors and agents must obtain required regulatory registrations or approvals. We must also comply with extensive regulations regarding safety, efficacy and quality in those jurisdictions. We may not be able to obtain the required regulatory registrations or approvals, or we may be required to incur significant costs in obtaining or maintaining any regulatory registrations or approvals we receive. Delays in obtaining any registrations or approvals required for marketing our products, failure to receive these registrations or approvals, or future loss of previously obtained registrations or approvals would limit our ability to sell our products internationally. For example, international regulatory bodies have adopted various regulations governing product standards, packaging requirements, labeling requirements, import restrictions, tariff regulations, duties and tax requirements. These regulations vary from country to country. In order to sell our products in Europe, in 2018 we had to undergo an inspection and re-file for ISO 13485:2016 and the CE Mark, which is an international symbol of quality and compliance with applicable European medical device directives. Failure to maintain ISO 13485:2016 certification or CE mark certification or other international regulatory approvals would prevent us from selling in some countries in the European Union.

As of December 31, 2025, our products have achieved and maintained both ISO 13485:2016 certification and the CE Mark through our contract manufacturer, Newmars Technologies. However, because of our focus on countries that do not require the CE Mark, it is uncertain whether we will maintain the CE Mark for the short term, as standards are continually evolving.

For our products to be marketed and sold in the People's Republic of China, they must gain approval from the NMPA. We have been working with SMI to obtain NMPA approval. In 2022, device safety compliance testing was completed, and in late 2023 enrollment in the pivotal clinical trial at four hospitals was completed. SMI filed the NMPA approval application on October 16, 2024. On January 6, 2025, SMI notified us that the NMPA had accepted the application as completed and commenced its review.

Although SMI no longer holds rights to LuViva in China, SMI and its partners HDMT and YMIC have indicated their willingness to continue assisting with the NMPA approval process. We are not obligated to grant long-term distribution or manufacturing rights in China to any of these parties. Both HDMT and YMIC continue to place product orders with us, as described above.

NMPA approval requires a successful manufacturing inspection. Current indications suggest that YMIC may be the entity to achieve this, as they are approved by the Chinese government to manufacture Class III medical devices. Based on current expectations, a manufacturing inspection could occur in the second quarter of 2026, with potential approval in the third or fourth quarter of 2026, although there is no assurance that this timeline will be met or that NMPA approval of LuViva will be obtained.

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Following regulatory approval of LuViva in Russia on August 11, 2025, the Company's distribution partner, Newmars Medical Technologies ("Newmars"), has shifted its focus from smaller Eastern European markets to the Russian market. The ongoing war between Russia and Ukraine has complicated efforts to market LuViva in Russia.

In Turkey, we have been in contact with three different medical groups representing over 60 individual hospitals and clinics. We have entered contract discussions for supplying LuViva to the Turkish Ministry of Health ("MOH"). The current plan involves a collaboration with MOH to conduct a clinical study in Turkey to support the use of LuViva for primary screening of cervical cancer as a replacement for the Pap test under the public health system. The MOH has informed us that this could potentially involve significant annual testing volumes if implemented nationwide. The clinical study is expected to involve about 800 patients, take less than six months to complete and will be funded by the MOH. As of December 31, 2025, MOH had approved the study and budget, including paying for LuViva devices and single use cervical guides. Funds totaling approximately $63,000 are expected to be released in the second quarter of 2026 and the study concluded in 2026.

In Indonesia, our contracted distributors are in discussions with the local government hospital system of Sulawesi, one of the nation's most populous islands. During the fourth quarter of 2024, we received an order and full payment for four devices from Indonesia. We have delayed shipment pending final payment for shipping and additional services requested by the customer. We expect to ship these devices in 2026.

**CRITICAL ACCOUNTING POLICIES**

Our material accounting policies, which we believe are the most critical to investors' understanding of our financial results and condition, are discussed below. Because we are still early in our enterprise development, the number of these policies requiring explanation is limited. As we begin to generate increased revenue from different sources, we expect that the number of applicable policies and complexity of the judgments required will increase.

**Revenue Recognition:** ASC 606, Revenue from Contracts with Customers establishes a single and comprehensive framework which sets out how much revenue is to be recognized, and when. The core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the vendor expects to be entitled in exchange for those goods or services. Revenue is recognized when control over the goods or services is transferred to the customer. For the Company, revenue is primarily generated from the sale of medical devices and related components, and in certain circumstances may also include service, licensing, or distribution arrangements. The application of the core principle in ASC 606 is carried out in five steps:

Step 1 – Identify the contract with a customer: a contract is defined as an agreement (including oral and implied), between two or more parties that creates enforceable rights and obligations and sets out the criteria for each of those rights and obligations. The contract needs to have commercial substance and it is probable that the entity will collect the consideration to which it will be entitled. In the medical device industry, contracts may include sales agreements with hospitals, clinics, distributors, or international partners.

Step 2 – Identify the performance obligations in the contract: a performance obligation in a contract is a promise (including implicit) to transfer a good or service to the customer. Each performance obligation should be capable of being distinct and is separately identifiable in the contract. For the Company, performance obligations typically consist of the delivery of medical devices, related disposables or accessories, and in certain arrangements may include installation services, training, technical support, or other post-delivery obligations.

Step 3 – Determine the transaction price: transaction price is the amount of consideration that the entity can be entitled to, in exchange for transferring the promised goods and services to a customer, excluding amounts collected on behalf of third parties. Transaction prices for the Company's products include fixed prices stated in purchase orders or distribution agreements.

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Step 4 – Allocate the transaction price to the performance obligations: If a contract contains multiple performance obligations, the transaction price is allocated to each performance obligation based on the relative standalone selling price of each promised good or service. Standalone selling prices are determined using observable market prices when available or estimated using appropriate pricing methods.

Step 5 – Recognize revenue when (or as) performance obligations are satisfied: Revenue is recognized when control of the promised goods or services transfers to the customer. For product sales, this generally occurs at a point in time when the device is shipped or delivered to the customer in accordance with the contractual shipping terms. Revenue related to services or other ongoing obligations, if any, is recognized over the period in which the services are performed.

**Valuation of Equity Instruments Granted to Employee, Service Providers and Investors:** On the date of issuance, the instruments are recorded at their fair value as determined using the Black-Scholes or binomial lattice valuation models.

**Inventory Valuation:** All inventories are stated at lower of cost or net realizable value, with cost determined substantially on a "first-in, first-out" basis. Selling, general, and administrative expenses are not inventoried, but are charged to expense when incurred.

**RESULTS OF OPERATIONS**

**COMPARISON OF THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025**

***Sales Revenue and Cost of Goods Sold:*** The Company did not recognize any revenue during the three months ended March 31, 2026 or 2025.

As of March 31, 2026, the Company had deferred revenue of $188,552, related to advance customer payments. Certain of these arrangements require additional payments or the satisfaction of contractual conditions, including the receipt of customer-provided components, prior to shipment. Accordingly, the timing of shipment and revenue recognition for these arrangements remains uncertain. The Company also has customer purchase orders for LuViva devices and disposables; however, the timing and fulfillment of these orders, and therefore revenue recognition, are dependent on various factors, including customer requirements, production timing, and regulatory considerations, including the status of approval by the NMPA.

While the Company believes that demand for its products may increase as regulatory approvals are obtained and commercial activities expand, there can be no assurance regarding the level or timing of revenue in 2026.

***Research and Development Expenses:*** Research and development expenses were $44,511 and $74,122 during the three months ended March 31, 2026 and 2025, respectively. The decrease of $29,611, or 40%, was primarily due to a $60,450 reduction in clinical trial research expenses, partially offset by increases of $20,000 in payroll and $7,025 for professional services and consulting.

***Sales and Marketing Expenses:*** Sales and marketing expenses were $22,500 and $72,993 during the three months ended March 31, 2026 and 2025, respectively. The decrease of $50,493, or 69%, was primarily due to a reduction of $41,285 in payroll and benefits and $8,907 in allocated rent expense.

***General and Administrative Expense:*** General and administrative expenses were $450,673 and $266,920 during the three months ended March 31, 2026 and 2025, respectively. The increase of $183,753, or 69%, was primarily due to increases of $76,380 in attorney's fees incurred in connection with the Company's uplisting to the Canadian stock exchange, $40,644 in stock option expense, $30,875 in rent and utilities (of which a portion reflects rent previously allocated to sales and marketing), $29,918 in payroll and benefits, and $19,355 in professional services and consulting, partially offset by decreases of $10,725 in property taxes and $2,694 in miscellaneous expenses.

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***Gain on Remeasurement of Deferred Compensation Conversion Liability:*** During the three months ended March 31, 2026, the Company recognized a gain of $217,062 on the remeasurement of the deferred compensation conversion liability related to Dr. Faupel's convertible deferred compensation arrangement. This liability is classified under ASC 718 because settlement into common stock is at the employee's election, and is carried at fair value with changes recognized each period. As of March 31, 2026, the conversion feature was out-of-the-money relative to the $0.25 conversion price, and accordingly its fair value was estimated using the Black-Scholes option pricing model, reflecting time value rather than intrinsic value. The resulting decrease in fair value from the prior period-end balance generated the gain recognized during the quarter.

***Interest Expense:*** Interest expense was $150,831 and $146,899 during the three months ended March 31, 2026 and 2025, respectively, and remained materially consistent period over period.

***Inducement Charges:*** During the three months ended March 31, 2026, the Company recognized inducement charges of $77,593 related to the issuance of warrants in connection with the conversion of outstanding debt.

***Change in fair value of derivative liability:*** The change in the fair value of derivative liabilities resulted in a gain of $12,847 during the three months ended March 31, 2026, compared to a gain of $52,890 in the prior-year period. A greater number of derivative liabilities were recorded in the prior year due to additional bifurcated conversion features associated with new debt issuances.

***Gain from Forgiveness of Debt:*** Gain from forgiveness of debt was $3,278 and $16,291 during the three months ended March 31, 2026 and 2025, respectively, and was due to forgiveness of debt from our creditors.

***Loss from Extinguishment of Debt**:* No loss on extinguishment of debt was recognized during the three months ended March 31, 2026, compared to $31,928 in the prior-year period, which related to the exchange of outstanding debt for equity securities in connection with a private placement completed in March 2025.

***Other Income:*** Other income was $14,588 and $98,090 during the three months ended March 31, 2026 and 2025, respectively. The higher amount in the prior-year period was primarily attributable to an agreement with SMI, under which a $180,000 payment was applied toward reimbursement of certain expenses incurred in prior periods and recognized in other income. This income was partially offset by an $84,000 loss recorded for the write-off of a long-term asset. Other income in the current period primarily relates to a vendor credit issued for amounts incurred in prior periods.

***Preferred Stock Dividends:*** Preferred stock dividend expense was $3,242 and $35,559 during the three months ended March 31, 2026 and 2025, respectively. The decrease of $32,317 was primarily due to a reduction in outstanding dividend-bearing preferred stock and the cessation of dividend accruals on certain preferred stock series.

***Net Loss Attributable to Common Stockholders:*** Net loss attributable to common stockholders was $1,013,441 and $462,742 during the three months ended March 31, 2026 and 2025, respectively. The reasons for the increase are explained above.

There was no income tax benefit recorded for the three months ended March 31, 2026 or 2025, due to recurring net operating losses.

**LIQUIDITY AND CAPITAL RESOURCES**

**Going Concern Considerations**

As of March 31, 2026, the Company had a working capital deficit of approximately $5.1 million and an accumulated deficit of approximately $158.0 million. The Company has historically incurred recurring losses from operations and expects such losses to continue as it advances its regulatory approval efforts and commercialization activities. During the three months ended March 31, 2026, the Company incurred a net loss attributable to common stockholders of approximately $1.0 million. The Company's operating activities continue to require significant cash outflows, primarily related to research and development, general and administrative expenses, and debt servicing obligations.

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The Company will need to continue to raise capital in order to provide funding for its operations and FDA approval process. If sufficient capital cannot be raised, the Company will continue its plans of curtailing operations by reducing discretionary spending and staffing levels and attempting to operate by only pursuing activities for which it has external financial support. However, there can be no assurance that such external financial support will be sufficient to maintain even limited operations or that the Company will be able to raise additional funds on acceptable terms, or at all. In such a case, the Company might be required to enter into unfavorable agreements or, if that is not possible, be unable to continue operations, and to the extent practicable, liquidate and/or file for bankruptcy protection.

**Cash Flows**

**Operating Activities:** Net cash used in operating activities was $616,947 during the three months ended March 31, 2026, compared to $330,302 in the prior-year period. The increase in cash used was primarily due to a net loss of $500,333 and unfavorable changes in working capital, primarily driven by a decrease in accounts payable and accrued liabilities of $97,111, partially offset by non-cash items including stock-based compensation of $68,316, inducement charges of $77,593, amortization of debt issuance costs and discounts of $47,514, and amortization of the lease right-of-use asset of $22,444, net of a non-cash gain on remeasurement of the deferred compensation conversion liability of $217,062.

**Investing Activities:** Net cash used in investing activities during the period was not material.

**Financing Activities:** Net cash provided by financing activities was $922,475 during the three months ended March 31, 2026, compared to $57,121 in the prior-year period. Cash provided by financing activities in the current period was primarily driven by $980,000 of proceeds from warrant exercises and $187,550 from the issuance of notes payable, partially offset by $215,119 of payments on notes payable, $2,406 of payments on notes payable issued to related parties, and $27,550 of debt issuance costs. In the prior-year period, financing activities consisted primarily of $204,500 of proceeds from a private placement offering, partially offset by $147,379 of payments on notes payable.

**Capital Resources and Funding Requirements**

Over the next 12 months we expect our burn rate to increase as we increase headcount, especially for meeting manufacturing demand. In addition, although we have significant inventory, we will need to order additional parts and services for production. Finally, we expect to spend another $350,000 to complete payments related to our FDA study, although these payments do not impact our schedule for filing the PMA during the second quarter of 2026. Thus, we estimate that approximately $2.4 million will be needed to fund the business over the next 12 months. However, other than completing and filing the US FDA study results, additional expenditures for manufacturing production will be needed only if significant product is ordered and paid for in advance by customers, which is our current policy.

Since our inception, we have raised capital through the public and private sale of debt and equity, funding from collaborative arrangements, and grants. As of March 31, 2026, we had cash of approximately $368,886 and a working capital deficit of $5.1 million. Our outstanding debt obligations include a combination of short- and long-term promissory notes, insurance premium financing, and several convertible notes with varying maturities, interest rates, and terms.

***Promissory Notes***

As of March 31, 2026, we have a promissory note issued to a former employee with an outstanding principal balance of approximately $41,000. The note accrues interest at 6% per annum and matures on May 5, 2028. Monthly payments of approximately $2,000 are required under the terms of the agreement.

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***Convertible Debt:***

Our convertible debt obligations as of March 31, 2026 include the following:

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| A $1,130,000 10% Senior Unsecured Convertible Debenture that matured on May 17, 2024 and remains in default. The debenture accrues interest at a default rate of 18% and is classified as short-term debt. |
| Convertible notes issued to Diagonal Lending LLC with an aggregate principal balance of approximately $222,000. These notes include conversion features exercisable upon an event of default and have been accounted for as derivative liabilities. The notes are subject to installment payment terms extending into 2026. |
| A convertible note issued to Labrys Fund II, L.P. with a principal balance of approximately $47,000, presented net of unamortized discounts and issuance costs. The note matures on August 27, 2026 and includes conversion features exercisable upon default or missed payments at a variable conversion price. |
| A convertible promissory note issued to GS Capital Partners, LLC with a principal balance of approximately **$**69,000. The note bears interest at 12% and matures on December 30, 2026. The note includes a conversion feature exercisable upon an event of default at a variable conversion price and has been evaluated for derivative accounting. The note also includes an original issue discount and warrants issued in connection with the financing. |
| A convertible note issued to Auctus Fund LLC with a principal balance of approximately $20,000 and accrued interest of approximately $152,000. The note is in default and classified as short-term debt. |

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These convertible instruments, especially those with variable conversion pricing or embedded features, may result in significant dilution to existing stockholders if converted to equity. Additionally, several of the notes include default provisions or change of control clauses that may accelerate repayment obligations or increase total amounts due.

***Related Party Debt***

As of March 31, 2026, we also had multiple outstanding obligations to related parties, including current and former directors and executives:

· On September 25, 2025, we issued a $160,000 contingently convertible promissory note to Dr. John Imhoff. The note bears interest at 10% per annum and matures on February 28, 2027. During the three months ended March 31, 2026, the holder converted approximately $40,000 of principal and approximately $4,000 of accrued interest into shares of common stock. These conversions were completed with the mutual agreement of the Company in lieu of scheduled principal payments. As of March 31, 2026, the remaining outstanding principal balance under the note was approximately $110,000.

· We have outstanding promissory notes with Dr. Mark Faupel and Dr. Gene Cartwright with aggregate balances of approximately $495,000, including accrued interest. Dr. Faupel's note, with an outstanding balance of approximately $174,000, was extended pursuant to a new promissory note dated April 30, 2026 with terms retroactively applied as of February 19, 2026 and a maturity date of August 18, 2027, and is classified as long-term. Dr. Cartwright's note remains past due and is classified as a current liability.

**Off-Balance Sheet Arrangements**

We have no material off-balance sheet arrangements, no special purpose entities, and no activities that include non-exchange-traded contracts accounted for at fair value.

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**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

As a smaller reporting company, we are not required to provide the information required by this item.

**ITEM 4. CONTROLS AND PROCEDURES**

**Disclosure Controls and Procedures**

We maintain a set of disclosure controls and procedures designed to ensure that information required to be disclosed by us in reports that we file or submit under the Securities Exchange Act of 1934, as amended (the "Exchange Act") is recorded, processed, summarized, and reported, within the time periods specified in Securities and Exchange Commission ("Commission") rules and forms. We carried out an evaluation under the supervision and with the participation of our management, including the Chief Executive Officer/Acting Chief Financial Officer, Mark Faupel, of the effectiveness of its disclosure controls and procedures. Based on that evaluation, the Chief Executive Officer/Acting Chief Financial Officer has concluded that our disclosure controls and procedures were ineffective as of March 31, 2026, due to the existence of material weaknesses in our internal control over financial reporting. The material weaknesses identified arose from a lack of recourses to properly research and account for complex transactions and lack of oversight and approval by the Board of Directors and Audit Committee, including formally documented approval of significant transactions, including related party transactions. While management is currently in the early stages of developing a remediation plan, we have yet to fully remediate this material weakness.

**Changes in Internal Control Over Financial Reporting**

There has been no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended March 31, 2026 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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**PART II - OTHER INFORMATION**

**ITEM 1. LEGAL PROCEEDINGS**

From time to time, the Company may be involved in various legal proceedings and claims arising in the ordinary course of business. Management believes that the disposition of these matters, individually or in the aggregate, is not expected to have a material adverse effect on the Company's financial condition.

**ITEM 1A. RISK FACTORS**

There have been no material changes from the risk factors previously disclosed in the Company's most recent Annual Report on Form 10-K as filed with the SEC on March 31, 2026.

**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.**

**Warrant Exchange and Exercise**

On February 25, 2026, the Company entered into a series of warrant exchange agreements with certain holders of its outstanding warrants originally issued in 2022. Under these agreements, holders were offered two alternatives: (i) exchange one of their existing warrants with exercise prices of $0.50 and $0.65 per share for new warrants with reduced exercise prices of $0.20 or $0.25 per share, respectively, which were required to be exercised immediately, and retain the remaining warrants with their original exercise prices of $0.50 or $0.65 per share and receive a one-year extension of the original expiration date, or (ii) keep the terms of the existing warrants unchanged. These transactions were conducted pursuant to individually negotiated exchange agreements with each holder.

As a result of these transactions, approximately 4,825,000 warrants were exchanged for new reduced-price warrants and exercised immediately, resulting in the issuance of approximately 4,825,000 shares of common stock and cash proceeds of approximately $980 to the Company. The remaining approximately 4,425,000 warrants retained their original exercise prices and had their expiration dates extended by one year and remain outstanding, expiring in 2027. The one-year extension of the remaining warrants resulted in incremental fair value of approximately $510, which was recognized as a deemed dividend recorded as an adjustment to additional paid-in capital. Holders of approximately 11,973,080 warrants elected to keep the terms of their existing warrants unchanged pursuant to Alternative (ii); these warrants retain their original exercise prices and expiration dates and are scheduled to expire in 2026.

The issuance of the foregoing securities was made in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506(b) of Regulation D promulgated thereunder, as the transactions did not involve any public offering. Cash proceeds of approximately $980 from the exercise of exchanged warrants were used for general corporate purposes.

**Conversion of Debt into Common Stock and Warrant Issuance**

During the three months ended March 31, 2026, the Company entered into an exchange agreement with the holder of a $75 convertible promissory note, pursuant to which the holder agreed to convert the outstanding principal and accrued interest of approximately $8 into 414,082 shares of common stock at a conversion price of $0.20 per share. In connection with the exchange, the Company also issued warrants to purchase 300,000 shares of common stock at an exercise price of $0.30 per share, expiring three years from the date of issuance, as additional consideration to induce the conversion. The Company recognized an inducement charge of approximately $78 related to these warrants during the three months ended March 31, 2026. Additionally, during the three months ended March 31, 2026, Dr. John Imhoff converted approximately $40 of principal and $4 of accrued interest under the Company's contingently convertible promissory note dated September 25, 2025 into 626,223 shares of common stock. The issuance of these shares and warrants was made in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506(b) of Regulation D promulgated thereunder. No cash proceeds were received by the Company in connection with the share issuance.

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**Warrants Issued to Consultant**

On February 20, 2026, the Company entered into an Exchange and Deferred Compensation Agreement with a former employee and consultant for services previously rendered. Under the agreement, the Company issued warrants to purchase 22,500 shares of common stock at an exercise price of $0.35 per share. The estimated fair value of the warrants was approximately $8 and was recognized as stock-based compensation expense during the three months ended March 31, 2026. The issuance of these warrants was made in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended. No cash proceeds were received by the Company in connection with this issuance.

**Warrants Issued in Connection with Promissory Note**

On February 6, 2026, the Company issued a promissory note in the principal amount of $30 to an investor. In connection with the issuance of the note, the Company issued warrants to purchase 30,000 shares of common stock at an exercise price of $0.40 per share, exercisable immediately upon issuance and expiring three years from the issuance date. The estimated fair value of the warrants was approximately $11, recorded as a discount to the note and amortized to interest expense over the term of the note. The issuance of these warrants was made in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended. No separate cash proceeds were received by the Company in connection with these warrants.

**Conversion of Preferred Stock into Common Stock**

During the three months ended March 31, 2026, the Company issued the following unregistered shares of common stock upon the conversion of preferred stock: (i) 400,000 shares upon the conversion of 100 shares of Series E Preferred Stock at the request of Dr. John Imhoff, a member of the Company's Board of Directors; (ii) 2,840,000 shares upon the conversion of 710 shares of Series F Preferred Stock; and (iii) 940,000 shares upon the conversion of 235 shares of Series F-2 Preferred Stock. The issuance of these securities was made in reliance upon the exemption from registration provided by Section 3(a)(9) of the Securities Act of 1933, as amended, as the exchanges were made with existing security holders and no commission or other remuneration was paid. No cash proceeds were received by the Company in connection with these conversions.

**Common Stock Issued as Payment of Dividends**

During the three months ended March 31, 2026, the Company issued the following unregistered shares of common stock in payment of accrued dividends on preferred stock: (i) 25,338 shares to Dr. John Imhoff in payment of accrued dividends on the Series E Preferred Stock; (ii) 211,645 shares in payment of accrued dividends on the Series F Preferred Stock; and (iii) 72,189 shares in payment of accrued dividends on the Series F-2 Preferred Stock. The issuance of these securities was made in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended, and/or Regulation D promulgated thereunder. No cash proceeds were received by the Company in connection with these issuances.

On April 1, 2026, the Company issued 5,663 shares of common stock for payment of dividends on its Series F-2 Preferred Stock. On April 6, 2026, the Company issued 23,291 shares of common stock for payment of dividends on its Series F-2 Preferred Stock. The unregistered shares were issued in reliance on exemptions from registration under Section 4(a)(2) of the Securities Act of 1933, as amended, and/or Regulation D promulgated thereunder. No cash proceeds were received by the Company in connection with these issuances.

**Stock Options**

During the three months ended March 31, 2026, the Company granted an aggregate of 625,000 stock options, consisting of 75,000 options granted under the Company's Stock Plan and 550,000 options granted outside of the Plan pursuant to approval by the Board of Directors. The options were granted with a weighted-average exercise price of $0.29 per share, equal to the closing market price of the Company's common stock on the date of grant. The grant-date fair value of the options was estimated using the Black-Scholes option pricing model with the following assumptions: expected term of 6.1 years, stock price of $0.29, exercise price of $0.29, volatility of 193.4%, risk-free interest rate of 3.8%, and no expected dividends. The weighted-average grant-date fair value of options granted during the period was $0.29 per share.

The issuance of the foregoing stock options was made in reliance upon the exemption from registration provided by Section 4(a)(2) and/or Rule 701 under the Securities Act of the Securities Act of 1933, as amended, as the grants were made to employees and directors without any public offering. No cash proceeds were received by the Company in connection with these grants.

**ITEM 3: DEFAULTS UPON SENIOR SECURITIES.**

None.

**ITEM 4: MINE SAFETY DISCLOSURES.**

Not applicable

**ITEM 5: OTHER INFORMATION.**

None.

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**ITEM 6. EXHIBITS**

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| | |
|:---|:---|
| **Exhibit Number** | **Exhibit Description** |
| [3.1](http://www.sec.gov/Archives/edgar/data/924515/000112178116000420/ex3one.htm) | [Restated Certificate of Incorporation, as amended through November 3, 2016 (incorporated by reference to Exhibit 3.1 to the annual report on Form 10-K filed March 15, 2016)](http://www.sec.gov/Archives/edgar/data/924515/000112178116000420/ex3one.htm) |
| [3.2](http://www.sec.gov/Archives/edgar/data/924515/000135448812001289/ex3one.htm) | [Amended and Restated Bylaws (incorporated by reference to Exhibit 3.1 to the current report on Form 8-K, filed March 23, 2012)](http://www.sec.gov/Archives/edgar/data/924515/000135448812001289/ex3one.htm) |
| [3.3](http://www.sec.gov/Archives/edgar/data/924515/000112178118000070/ex3one.htm) | [Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the current report on Form 8-K, filed November 15, 2018)](http://www.sec.gov/Archives/edgar/data/924515/000112178118000070/ex3one.htm) |
| [3.4](http://www.sec.gov/Archives/edgar/data/924515/000165495420004236/gthp_ex34.htm) | [Certificate of Designation of Preferences, Rights and Limitations of Series D Convertible Preferred Stock (incorporated by reference to Exhibit 3.4 to the annual report on Form 10-K, filed April 20, 2020)](http://www.sec.gov/Archives/edgar/data/924515/000165495420004236/gthp_ex34.htm) |
| [3.5](http://www.sec.gov/Archives/edgar/data/924515/000165495421003915/gthp_ex35.htm) | [Certificate of Designation of Preferences, Rights and Limitations of Series E Convertible Preferred Stock (incorporated by reference to Exhibit 3.5 to the annual report on Form 10-K filed April 5, 2021)](http://www.sec.gov/Archives/edgar/data/924515/000165495421003915/gthp_ex35.htm) |
| [3.6](http://www.sec.gov/Archives/edgar/data/924515/000165495421003915/gthp_ex36.htm) | [Certificate of Designation of Preferences, Rights and Limitations of Series F Convertible Preferred Stock (incorporated by reference to Exhibit 3.6 to the annual report on Form 10-K filed April 5, 2021)](http://www.sec.gov/Archives/edgar/data/924515/000165495421003915/gthp_ex36.htm) |
| [3.7](http://www.sec.gov/Archives/edgar/data/924515/000112178121000013/ex3one.htm) | [Certificate of Designation of Preferences, Rights and Limitations of Series F-2 Convertible Preferred Stock (incorporated by reference to Exhibit 3.1 to the current report on Form 8-K, filed on June 10, 2021)](http://www.sec.gov/Archives/edgar/data/924515/000112178121000013/ex3one.htm) |
| [3.8](http://www.sec.gov/Archives/edgar/data/924515/000147793222001704/gthp_ex38.htm) | [Certificate of Designation of Preferences, Rights and Limitations of Series G Convertible Preferred Stock (incorporated by reference to Exhibit 3.8 to the annual report on Form 10-K filed March 30, 2022)](http://www.sec.gov/Archives/edgar/data/924515/000147793222001704/gthp_ex38.htm) |
| [3.9](http://www.sec.gov/Archives/edgar/data/924515/000165495422000294/gthp_ex31.htm) | [Certificate of Amendment to the Certificate of Incorporation of Guided Therapeutics, Inc. (incorporated by reference to Exhibit 3.1 to the current report on Form 8-K, filed on January 7, 2022)](http://www.sec.gov/Archives/edgar/data/924515/000165495422000294/gthp_ex31.htm) |
| [10.1](http://www.sec.gov/Archives/edgar/data/924515/000147793226001723/gthp_ex10119.htm) | [Promissory Note, dated January 8, 2026, issued by the Company to 1800 Diagonal Lending LLC in the principal amount of $157,550 (incorporated by reference to Exhibit 10.119 to the annual report on Form 10-K for the year ended December 31, 2025, filed March 31, 2026)](http://www.sec.gov/Archives/edgar/data/924515/000147793226001723/gthp_ex10119.htm) |
| [10.2](http://www.sec.gov/Archives/edgar/data/924515/000147793226001723/gthp_ex10120.htm) | [Form of Warrant Exchange Agreement, dated February 25, 2026, by and between the Company and certain holders of the Company's outstanding warrants originally issued in 2022 (incorporated by reference to Exhibit 10.120 to the annual report on Form 10-K for the year ended December 31, 2025, filed March 31, 2026)](http://www.sec.gov/Archives/edgar/data/924515/000147793226001723/gthp_ex10120.htm) |
| [10.3\*](gthp_ex103.htm) | [Exchange Agreement, dated March 16, 2026, by and between the Company and John Gould](gthp_ex103.htm) |
| [10.4\*](gthp_ex104.htm) | [Form of Promissory Note, dated April 30, 2026, issued by the Company to Dr. Mark Faupel](gthp_ex104.htm) |
| [31\*](gthp_ex311.htm) | [Certification of the Principal Executive Officer and Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](gthp_ex311.htm) |
| [32\*](gthp_ex321.htm) | [Section 1350 Certification of the Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](gthp_ex321.htm) |
| 101.1\* | Interactive data files for Guided Therapeutics, Inc.'s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, formatted in Inline XBRL: (i) the Unaudited Condensed Consolidated Balance Sheets; (ii) the Unaudited Condensed Consolidated Statements of Operations; (iii) the Unaudited Condensed Consolidated Statements of Stockholders' Deficit; (iv) the Unaudited Condensed Consolidated Statements of Cash Flows; and (v) the Notes to the Unaudited Condensed Consolidated Financial Statements |
| 104 | The cover page from Guided Therapeutics, Inc.'s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 (formatted in Inline XBRL and included in Exhibit 101) |

---

______________

\*Filed herewith

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| **GUIDED THERAPEUTICS, INC.** | **GUIDED THERAPEUTICS, INC.** |
| By: | */s/ Mark Faupel* |
|  | Mark Faupel |
|  | President, Chief Executive Officer, <br>Chief Operating Officer and Acting Chief Financial Officer |

---

Date: May 15, 2026

## Exhibit 10.3

**EXHIBIT 10.3**

**EXCHANGE AGREEMENT**

This EXCHANGE AGREEMENT (this "<u>Agreement</u>") is made and entered into effective as of the 16th day of March, 2026 by and between GUIDED THERAPEUTICS, INC., a Delaware corporation (the "<u>Company</u>") and the undersigned creditor of the Company (the "<u>Creditor</u>").

**<u>W</u> <u>I T N E S S E T H</u> :**

WHEREAS, the Creditor is the payee of certain obligations owed to the Creditor by the Company as set forth on <u>Exhibit A</u> hereto (the "<u>Obligations</u>");

WHEREAS, the Company and the Creditor desire to enter into this Agreement to evidence and set forth the terms of the exchange in satisfaction of the Obligations;

NOW, THEREFORE, in consideration of the mutual covenants herein contained, and intending to be legally bound hereby, the parties hereto, being duly sworn, do covenant, agree and certify as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Recitals</u>.** The parties hereto acknowledge and agree that the foregoing recitals are true and accurate and constitute part of this Agreement to the same extent as if contained in the body hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Definitions</u>.** In addition to the terms defined elsewhere in this Agreement: (a) capitalized terms that are not otherwise defined herein have the meanings given to such terms in the Obligations (as defined herein), and (b) the following terms have the meanings set forth in this Section 1.1:

"<u>Affiliate</u>" means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person. "<u>Board of</u> <u>Directors</u>" means the board of directors of the Company.

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

"<u>Liens</u>" means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

"<u>Person</u>" means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Exchange and Satisfaction</u>.** The Obligations are hereby surrendered by the Creditor and exchanged for the Securities according to the following terms and conditions.

a. The Creditor is agreeing to exchange his Convertible Promissory Note, dated May 2, 2025, currently owed by the Company to the Creditor into the Company's common stock and a warrant to purchase additional shares of the Company's common stock as set forth below in Section 3.b.

b. As of March 15, 2026, the balance due on the note is $82,816.44 including principal balance of $75,000 and accrued interest of $7,816.44. In lieu of agreeing to exchange $82,816.44 worth of debt currently owed by the Company to Creditor, the Creditor agrees to receive:

(1) 414,082 shares of common stock, at $0.20 purchase price, as stated in the Promissory Note Agreement Purchase Agreement, dated May 2, 2025 (<u>Exhibit A</u>).

(2) 300,000 three-year warrants to purchase shares of common stock, at an exercise price of $0.30 (<u>Exhibit B</u>).

c. The terms of the previously granted Common Stock Purchase Warrant Agreement for 75,000 warrant shares, issued in conjunction with the May 2, 2025, Convertible Promissory Note, are to remain in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Representations and Warranties of the Company</u>.** The Company hereby makes the following representations and warranties to Creditor:

&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>Authorization; Enforcement</u>. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder. The execution and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, the Board of Directors or the Company's stockholders in connection herewith or therewith. This Agreement have been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligations of the Company enforceable against the Company in accordance with their terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Release</u>.** The Creditor acknowledges and agrees that it shall have no further rights or interest in, and shall not receive any further consideration, payment or distribution of any kind with respect to, the Obligations. In such regard, the Creditor hereby waives, relinquishes, remises and releases all rights, claims, interests or liabilities, known and unknown, of any nature whatsoever in law or equity which the Creditor may previously have had or may now or hereafter have as against or to receive from the Company arising out of, resulting from or relating to the Obligations or any rights or interest of the Creditor with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Further Assurances</u>.** The Creditor shall hereafter, without further consideration, execute and deliver promptly to the Company such further consents, waivers, assignments, endorsements and other documents and instruments, and to take all such further actions, as the Company may from time to time reasonably request with respect to the exchange and satisfaction of the Obligations Interest and the consummation in full thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Successors and Assigns</u>.** This Agreement is binding upon, 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. **<u>Counterparts</u>.** This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which, when taken together, shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have affixed their hands and seals by signing this Agreement as of the day and year first above written.

[Signatures on Following Page]

---

| | |
|:---|:---|
| **<u>Company</u>:**<br>**GUIDED THERAPEUTICS, INC.**  | **<u>Company</u>:**<br>**GUIDED THERAPEUTICS, INC.**  |
| By: |  |
| Name:  | Mark Faupel |
| Title: | CEO & President |

---

---

| | |
|:---|:---|
| **<u>Creditor</u>:**<br>**John Gould** | **<u>Creditor</u>:**<br>**John Gould** |
| Name: | John Gould |
| Address: | |

---

**EXHIBIT A**

*Convertible Promissory Note, dated May 2, 2025*

5<br>

**CONVERTIBLE PROMISSORY NOTE**

---

| | |
|:---|:---|
| **Original Issuance Date: May 2, 2025** | **Principal Amount: $75,000.00**  |

---

THIS PROMISSORY NOTE is duly authorized and validly Note of Guided Therapeutics, Inc., a Delaware corporation, (the "Company"), having its principal place of business at 5835 Peachtree Corners East, Suite B, Peachtree Corners, Georgia 30092.

FOR VALUE RECEIVED, the undersigned promises to pay to **John Gould** ("Holder") the principal sum of SEVENTY-FIVE THOUSAND DOLLARS ($75,000.00), in lawful money of the United States of America, at such place as Holder may designate in writing.

The entire unpaid principal balance due on this Convertible Promissory Note (this "Note"), together with all accrued and unpaid interest and fees, if any, shall be due and payable in full on the first anniversary of this agreement, or, at the discretion of the Company at the maturity date the Company may give the Holder the option of converting the balance at $0.20 per share

The Note shall accrue 12% simple annual interest from the date thereof and mature on May 2, 2026. In the event of the default, where the note is not fully paid or converted at the due date, the interest rate shall increase to 15%.

With the Holder's written permission, this Note may be prepaid in full or in part from time to time without penalty or premium.

The Holder will also receive 75,000 common stock purchase warrants of Guided Therapeutics, Inc. **(Exhibit A).** The exercise price per share of the common stock under this warrant shall be $0.20.

The warrants shall have an issuance date of May 2, 2025 and will expire 3 years from the date herein.

All parties to this Note, including maker and any sureties, endorsers, or guarantors, hereby waive protest, presentment, notice of dishonor, and notice of acceleration of maturity and agree to continue to remain bound for the payment of principal, interest and all other sums due under this Note, notwithstanding any change or changes by way of release, surrender, exchange, modification or substitution of any security for this Note or by way of any extension or extensions of time for the payment of principal and interest, if any; and all such parties waive all and every kind of notice of such change or changes and agree that the same may be made without notice or consent of any of them.

This Note shall be governed by, and construed in accordance with, the laws of the State of Georgia, regardless of laws that might otherwise govern under applicable principles of conflicts of law.

IN WITNESS WHEREOF, the undersigned has caused this instrument to be duly executed the day and year first above written.

---

| | |
|:---|:---|
| **GUIDED THERAPEUTICS, INC.** | **GUIDED THERAPEUTICS, INC.** |
| By: |  |
|  | Name: Mark L. Faupel |
|  | Title: CEO & President |

---

**<u>Exhibit A</u>**

NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES

**COMMON STOCK PURCHASE WARRANT** 

**GUIDED THERAPEUTICS, INC.**

Warrant Shares: 75,000 Date of Issuance: May 2, 2025

THIS COMMON STOCK PURCHASE WARRANT (the "<u>Warrant</u>") certifies that, for value received, **John Gould** or its assigns (the "<u>Holder</u>") is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after date hereof (the "Date of Issuance") and on or prior to 5:00 p.m. (New York City time) on May 1, 2028 (the "<u>Termination Date</u>") but not thereafter, to subscribe for and purchase from Guided Therapeutics, Inc., a Delaware corporation (the "<u>Company</u>"), up to 75,000 shares (as subject to adjustment hereunder, the "<u>Warrant Shares</u>") of Common Stock. The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

<u>Section 1</u>. <u>Definitions</u>. This Warrant is issued by the Company as of the date hereof in connection with that certain Promissory Note dated May 2, 2025, by and among the Company and the Holder (the "<u>Agreement</u>").

<u>Section 2</u>. <u>Exercise</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;a) <u>Exercise of Warrant</u>. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company of a duly executed facsimile copy or PDF copy submitted by e-mail (or e-mail attachment) of the Notice of Exercise in the form annexed hereto (the "<u>Notice of Exercise</u>"). The Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise by wire transfer or cashier's check drawn on a United States bank. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise be required. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date on which the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within two (2) Business Days of receipt of such notice. **The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face 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;b) <u>Exercise Price</u>. The exercise price per share of the Common Stock under this Warrant shall be **$0.20** (the "<u>Exercise Price</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;c) <u>[RESERVED]</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;d) <u>Mechanics of Exercise</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Delivery of Warrant Shares Upon Exercise</u>. The Company shall deliver to the Holder the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise. Upon delivery of the Notice of Exercise, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price is received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. <u>Delivery of New Warrants Upon Exercise</u>. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. <u>Rescission Rights</u>. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. <u>No Fractional Shares or Scrip</u>. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. <u>Charges, Taxes and Expenses</u>. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; <u>provided</u>, <u>however</u>, that in the event that Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. <u>Closing of Books</u>. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to 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) <u>Holder's Exercise Limitations</u>. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder's Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder's Affiliates (such Persons, "<u>Attribution Parties</u>")), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates and Attribution Parties shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties. Except as set forth in the preceding sentence, for purposes of this Section 2(d), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(d) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder's determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 2(d), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company's most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within one Trading Day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates or Attribution Parties since the date as of which such number of outstanding shares of Common Stock was reported. The "<u>Beneficial Ownership Limitation</u>" shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(d), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this Section 2(d) shall continue to apply. Any increase in the Beneficial Ownership Limitation will not be effective until the 61<sup>st</sup> day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(d) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.

<u>Section 3</u>. <u>Certain Adjustments</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;a) <u>Stock Dividends and Splits</u>. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

&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>Fundamental Transaction</u>. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a "<u>Fundamental Transaction</u>"), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the "<u>Alternate Consideration</u>") receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction.

&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>Calculations</u>. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

&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>Notice to Holder</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Adjustment to Exercise Price</u>. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>Notice to Allow Exercise by Holder</u>. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be delivered by facsimile or email to the Holder at its last facsimile number or email address as it shall appear upon the Warrant Register of the Company, at least 10 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified in such notice. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

<u>Section 4</u>. <u>Transfer of Warrant</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;a) <u>Transferability</u>. Subject to compliance with any applicable securities laws and the conditions set forth in Section 4(d) hereof and to the provisions of Section 4.1 of the Purchase Agreement, this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the Company within three (3) Trading Days of the date on which the Holder delivers an assignment form to the Company assigning this Warrant in full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

&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>New Warrants</u>. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the Initial Exercise Date and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant 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;c) <u>Warrant Register</u>. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the "<u>Warrant Register</u>"), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

&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>Transfer Restrictions</u>. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant, the transfer of this Warrant shall not be either (i) registered pursuant to an effective registration statement under the Securities Act and under applicable state securities or blue sky laws or (ii) eligible for resale without volume or manner-of-sale restrictions or current public information requirements pursuant to Rule 144, the Company may require, as a condition of allowing such transfer, that the Holder or transferee of this Warrant, as the case may be, comply with the provisions of Section 5.7 of the Purchase 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) <u>Representation by the Holder</u>. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable state securities law, except pursuant to sales registered or exempted under the Securities Act.

<u>Section 5</u>. <u>Miscellaneous</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;a) <u>No Rights as Stockholder Until Exercise</u>. This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth in Section 3.

&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>Loss, Theft, Destruction or Mutilation of Warrant</u>. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

&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>Saturdays, Sundays, Holidays, etc</u>. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding Business Day.

&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>Authorized Shares</u>.

Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction 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) <u>Jurisdiction</u>. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance with the provisions of the Purchase 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;f) <u>Restrictions</u>. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, will have restrictions upon resale imposed by state and federal securities laws.

&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) <u>Nonwaiver and Expenses</u>. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice the Holder's rights, powers or remedies. Without limiting any other provision of this Warrant or the Purchase Agreement, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys' fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

&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) <u>Notices</u>. Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered in accordance with the notice provisions of the Purchase 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;i) <u>Limitation of Liability</u>. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of 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;j) <u>Remedies</u>. 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k) <u>Successors and Assigns</u>. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.

&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) <u>Amendment</u>. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.

&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) <u>Severability</u>. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions 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;n) <u>Headings</u>. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*

*(Signature Page Follows)*

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

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| | |
|:---|:---|
| **GUIDED THERAPEUTICS, INC.** | **GUIDED THERAPEUTICS, INC.** |
| By: |  |
|  | Name: Mark L. Faupel |
|  | Title: CEO & President |

---

**NOTICE OF EXERCISE**

TO: GUIDED THERAPEUTICS, 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;(1) The undersigned hereby elects to purchase Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Payment shall take the form of in lawful money of the United States

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Please issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:

The Warrant Shares shall be delivered to the following DWAC Account 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;(4) <u>Accredited Investor</u>. The undersigned is an "accredited investor" as defined in Regulation D promulgated under the Securities Act of 1933, as amended.

[SIGNATURE OF HOLDER]

Name of Investing Entity:<u> </u>

*Signature of Authorized Signatory of Investing Entity*:<u> </u>

Name of Authorized Signatory:<u> </u>

Title of Authorized Signatory:<u> </u>

Date:<u> </u>

**EXHIBIT B**

ASSIGNMENT FORM

*(To assign the foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares.)*

FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

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| | |
|:---|:---|
| Name: |  |
|  | (Please Print) |
| <br> Address: |  |
| <br> Phone Number:  | (Please Print) |
| <br> Email Address: |  |
| <br> Dated:<u> </u><u> </u>,<u> </u> |  |
| <br> Holder's Signature:<u> </u> |  |
| <br> Holder's Address:<u> </u> |  |

---

**Exchange Balance - Gould, John, as of March 15, 2026**

![](gthp_ex103img12.jpg)

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| | | | |
|:---|:---|:---|:---|
| **Gould, John** | | | |
| **Loan date:** | **5/2/2025** | | |
|  | |<br>**Principal** | <br>**Payment date** |
| **Short-term Note** |  | $75000.00 |  |
| Interest rate | 12% |  |  |
| Default interest rate | 15% |  |  |

---

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Gould Note Payable** | **Gould Note Payable** | **Gould Note Payable** | **Gould Note Payable** | **Gould Note Payable** | **Gould Note Payable** | **Gould Note Payable** | **Gould Note Payable** | **Gould Note Payable** |
| **Period** | **Date** | **Principal** | **Interest rate** | **Principal Paid** | **Accrued Interest** | **Interest Payment** | **Accumulated Interest** | **Balance remaining** |
|  | 5/2/2025 | 75000.00 | 12% |  |  |  |  | **75000.00** |
| 0 | 5/31/2025 | 75000.00 | 12% |  | 715.07 |  | 715.07 | **75715.07** |
| 1 | 6/30/2025 | 75000.00 | 12% |  | 739.73 |  | 1454.79 | **76454.79** |
| 2 | 7/31/2025 | 75000.00 | 12% |  | 764.38 |  | 2219.18 | **77219.18** |
| 3 | 8/31/2025 | 75000.00 | 12% |  | 764.38 |  | 2983.56 | **77983.56** |
| 4 | 9/30/2025 | 75000.00 | 12% |  | 739.73 |  | 3723.29 | **78723.29** |
| 5 | 10/31/2025 | 75000.00 | 12% |  | 764.38 |  | 4487.67 | **79487.67** |
| 6 | 11/30/2025 | 75000.00 | 12% |  | 739.73 |  | 5227.40 | **80227.40** |
| 7 | 12/31/2025 | 75000.00 | 12% |  | 764.38 |  | 5991.78 | **80991.78** |
| 8 | 1/31/2026 | 75000.00 | 12% |  | 764.38 |  | 6756.16 | **81756.16** |
| 9 | 2/28/2026 | 75000.00 | 12% |  | 690.41 |  | 7446.58 | **82446.58** |
| 10 | 3/15/2026 |  | 12% | (75000.00) | 369.86 | (7816.44) |  | **(0.00)** |
| 11 | 4/30/2026 |  | 12% |  |  |  |  | **(0.00)** |
| 12 | 5/2/2026 |  | 12% |  |  |  |  | **(0.00)** |
|  |  |  |  | **(75000)** | **7816** | **(7816)** |  |  |

---

GTHP - Notes Payable Rollforward - Gould, J.

## Exhibit 10.4

**EXHIBIT 10.4**

**PROMISSORY NOTE**

*(Extends long term note payable of the principal of $153,177.69, dated February 18, 2023, and the subsequent extension.)*

---

| | |
|:---|:---|
| **Issuance date:** April 30, 2026 | **Principal Amount:** $133,511.74 |

---

THIS PROMISSORY NOTE is duly authorized and validly Note of Guided Therapeutics, Inc., a Delaware corporation, (the "Company"), having its principal place of business at 5835 Peachtree Corners East, Suite B, Peachtree Corners, Georgia 30092.

FOR VALUE RECEIVED, the undersigned promises to pay to **Mark L. Faupel** ("Holder") the principal sum of ONE HUNDRED THIRTY-THREE THOUSAND FIVE HUNDRED ELEVEN DOLLARS AND SEVENTY-FOUR CENTS ($133,511.74), in lawful money of the United States of America, at such place as Holder may designate in writing.

The Note shall accrue 6% simple annual interest and mature on August 18, 2027. The terms of this Note shall retroactively apply starting February 19, 2026, the most recent maturity date of the prior extension agreement.

The entire unpaid principal balance due on this Promissory Note (this "Note"), together with all accrued and unpaid interest and fees, if any, at the choice of the Holder, shall be due and payable in full in the event the Company obtains a financing of at least $4.0 million or, at the end of any quarter during the next two years, has a minimum of $4.0 million in cash on hand.

All parties to this Note, including maker and any sureties, endorsers, or guarantors, hereby waive protest, presentment, notice of dishonor, and notice of acceleration of maturity and agree to continue to remain bound for the payment of principal, interest and all other sums due under this Note, notwithstanding any change or changes by way of release, surrender, exchange, modification or substitution of any security for this Note or by way of any extension or extensions of time for the payment of principal and interest, if any; and all such parties waive all and every kind of notice of such change or changes and agree that the same may be made without notice or consent of any of them.

This Note shall be governed by, and construed in accordance with, the laws of the State of Georgia, regardless of laws that might otherwise govern under applicable principles of conflicts of law.

IN WITNESS WHEREOF, the undersigned has caused this instrument to be duly executed the day and year first above written.

*[Signatures on Following Page]*

**Company:**

**GUIDED THERAPEUTICS, INC.**

By: ___________________________________

Name: Michael James

Title: Chairman

**Holder:**

By: ___________________________________

Name: Mark L. Faupel

Title: ___________________________________

2<br>

## Exhibit 31.1

**EXHIBIT 31**

**Rule 13a-14(a)/15(d)-14(a) Certifications**

I, Mark Faupel, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Guided Therapeutics Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a 15(e) and 15d 15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant 's internal control over financial reporting.

5. I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: May 15, 2026  | */s/ Mark Faupel* |
|  | Mark Faupel |
|  | President, Chief Executive Officer, <br> Chief Operating Officer and Acting Chief Financial Officer |

---

## Exhibit 31.1

**EXHIBIT 32**

**SECTION 1350 CERTIFICATION**

Pursuant to the requirement set forth in Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934, as amended, and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. § 1350), as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, Mark Faupel, Chief Executive Officer (principal executive and financial officer) of Guided Therapeutics Inc (the "Company"), hereby certifies that, to his knowledge on the date hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Quarterly Report on Form 10-Q of the Company for the period ended March 31, 2026 filed on the date hereof with the Securities and Exchange Commission (the "Quarterly Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.

This certification shall not be deemed to be filed with the Securities and Exchange Commission and shall not be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Quarterly Report), irrespective of any general incorporation language contained in such filing. A signed original of this written statement required by Section 906 has been provided to the Company and will be retained and furnished to the Securities and Exchange Commission or its staff upon request.

---

| |
|:---|
| */s/ Mark Faupel* |
| President, Chief Executive Officer, <br> Chief Operating Officer and Acting Chief Financial Officer<br>May 15, 2026 |

---