# EDGAR Filing Document

**Accession Number:** 0000856984
**File Stem:** 0001493152-26-022888
**Filing Date:** 2026-5
**Character Count:** 78331
**Document Hash:** cf854edbea1f58abc08c4fb0e95461eb
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-26-022888.hdr.sgml**: 20260514

**ACCESSION NUMBER**: 0001493152-26-022888

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 62

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260514

**DATE AS OF CHANGE**: 20260514

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** QHSLab, Inc.
- **CENTRAL INDEX KEY:** 0000856984
- **STANDARD INDUSTRIAL CLASSIFICATION:** SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 112655906
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-19041
- **FILM NUMBER:** 26975988

**BUSINESS ADDRESS:**
- **STREET 1:** 901 NORTHPOINT PARKWAY
- **STREET 2:** SUITE 302
- **CITY:** WEST PALM BEACH
- **STATE:** FL
- **ZIP:** 33407
- **BUSINESS PHONE:** (929) 379-6503

**MAIL ADDRESS:**
- **STREET 1:** 901 NORTHPOINT PARKWAY
- **STREET 2:** SUITE 302
- **CITY:** WEST PALM BEACH
- **STATE:** FL
- **ZIP:** 33407

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** USA EQUITIES CORP.
- **DATE OF NAME CHANGE:** 20151119

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** USA EQUITY CORP.
- **DATE OF NAME CHANGE:** 20151116

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AMERICAN BIOGENETIC SCIENCES INC
- **DATE OF NAME CHANGE:** 19940426

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q**

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

For the quarterly period ended March 31, 2026

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

For the period from ______________ to_______________

Commission file number 000-19041

**QHSLab, Inc.**

(Exact Name Of Registrant As Specified In Its Charter)

Nevada 30-1104301 <br> (State of Incorporation) (I.R.S. Employer Identification No.)

901 Northpoint Parkway, Suite 302, West Palm Beach, FL 33407 <br> (Address of Principal Executive Offices) (ZIP Code)

Registrant's Telephone Number, Including Area Code: (929) 379-6503

**Securities Registered Pursuant to Section 12(g) of The Act:**

---

| | |
|:---|:---|
| **Title of Each Class** | **Trading Symbol(s)** |
| **Common Stock, $0.0001 Par Value** | **USAQ** **NA** |

---

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 ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically 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 ☒ No ☐

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

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller Reporting Company ☒ <br> Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 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 ☐ No ☒

On May 14, 2026, the Registrant had 15,032,788 shares of common stock outstanding.

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| **Item** | **Description** | **Page** |
|  | **[PART I - FINANCIAL INFORMATION](#HK_001)** |  |
| ITEM 1. | [FINANCIAL STATEMENTS.](#HK_004) | 4 |
| ITEM 2. | [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.](#sh_001) | 19 |
| ITEM 4. | [CONTROLS AND PROCEDURES.](#sh_002) | 22 |
|  | **[PART II - OTHER INFORMATION](#sh_003)** |  |
| ITEM 6. | [EXHIBITS.](#sh_004) | 23 |

---

**Cautionary Note Regarding Forward-Looking Statements**

This report contains forward-looking statements. Certain of the matters discussed herein concerning, among other items, our operations, cash flows, financial position and economic performance including, in particular, future sales, product demand, competition and the effect of economic conditions, include forward-looking statements.

Forward-looking statements are predictive in nature and do not relate strictly to historical or current facts and generally include words such as "expects," "anticipates," "intends," "plans," "believes," "estimates" and similar expressions. Although we believe that the forward-looking statements contained in this report are based upon reasonable assumptions, these statements and other projections contained herein expressing opinions about future outcomes and non-historical information, are subject to uncertainties and, therefore, there is no assurance that the outcomes expressed in these statements will be achieved.

Investors are cautioned that forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from the expectations expressed in forward-looking statements contained herein. Given these uncertainties, you should not place any reliance on these forward-looking statements which speak only as of the date hereof. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. You are advised, however, to consult any additional disclosures we make in our reports filed with the Securities and Exchange Commission ("SEC").

**PART I – FINANCIAL INFORMATION**

**ITEM 1. FINANCIAL STATEMENTS (unaudited)**

---

| | |
|:---|:---|
| [Condensed Consolidated Balance Sheets – March 31, 2026 (unaudited) and December 31, 2025](#HK_002) | 5 |
| [Condensed Consolidated Statements of Operations – Three Months Ended March 31, 2026 and 2025 (unaudited)](#HK_005) | 6 |
| [Condensed Consolidated Statements of Stockholders' Equity (Deficit) – Three Months Ended March 31, 2026 and 2025 (unaudited)](#HK_006) | 7 |
| [Condensed Consolidated Statements of Cash Flows – Three Months Ended March 31, 2026 and 2025 (unaudited)](#HK_007) | 8 |
| [Notes to the Condensed Consolidated Financial Statements (unaudited)](#HK_008) | 9 |

---

**QHSLab, Inc.**

Condensed Consolidated Balance Sheets

---

| | | |
|:---|:---|:---|
|  | March 31, 2026 | December 31, 2025 |
|  | (Unaudited) | |
| Assets |  |  |
| Current Assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $362088 | $636157 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 201202 | 190610 |
| &nbsp;&nbsp;&nbsp;Inventory | 27517 | 35790 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 28251 | 20452 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 619058 | 883009 |
| Non-current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 1269969 | 1287997 |
| Total assets | $1889027 | $2171006 |
| Liabilities and Stockholders' Equity (Deficit) |  |  |
| Current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $218136 | $326431 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 19688 | 17858 |
| &nbsp;&nbsp;&nbsp;Due to related party | 93304 | - |
| &nbsp;&nbsp;&nbsp;Loans payable | 36877 | 85571 |
| &nbsp;&nbsp;&nbsp;Convertible notes payable | - | 20000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 368005 | 449860 |
| Non-current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Loans payable, non-current portion | - | 96218 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-current liabilities | - | 96218 |
| Total liabilities | 368005 | 546078 |
| Commitments and contingencies (Note 14) |  |  |
| Stockholders' Equity (Deficit): |  |  |
| Preferred stock, 10,000,000 shares authorized |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock Series A, $0.0001 par value; 1,080,092 shares issued and outstanding | 108 | 108 |
| &nbsp;&nbsp;&nbsp;Preferred stock Series A-2, $0.0001 par value; 2,644,424 shares issued and outstanding | 264 | 264 |
| Common stock, 900,000,000 shares authorized, $0.0001 par value; 15,032,788 shares issued and outstanding | 1503 | 1503 |
| Additional paid-in capital | 5526604 | 5526604 |
| Accumulated deficit | (4007457) | (3903551) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 1521022 | 1624928 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $1889027 | $2171006 |

---

See accompanying notes to the unaudited condensed consolidated financial statements.

**QHSLab, Inc.**

Condensed Consolidated Statements of Operations

---

| | | |
|:---|:---|:---|
|  | Three Months Ended<br> March 31, 2026 | Three Months Ended<br> March 31, 2025 |
|  | (Unaudited) | (Unaudited) |
| Revenue | $728685 | $645419 |
| Cost of revenue | 257882 | 215475 |
| &nbsp;&nbsp;&nbsp;Gross profit | 470803 | 429944 |
| Operating Expenses: |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 207822 | 155523 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 218424 | 144399 |
| &nbsp;&nbsp;&nbsp;Research and development | 120909 | 124033 |
| &nbsp;&nbsp;&nbsp;Amortization | 18028 | 18028 |
| Total Operating Expenses | 565183 | 441983 |
| &nbsp;&nbsp;&nbsp;Net operating loss | (94380) | (12039) |
| Other income (expense): |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (9526) | (67570) |
| Loss before income taxes | (103906) | (79609) |
| &nbsp;&nbsp;&nbsp;Provision on income taxes | - | - |
| Net loss | $(103906) | $(79609) |
| Basic and diluted net loss per share | $(0.00) | $(0.01) |
| Weighted average shares outstanding (basic and diluted) | 15032788 | 11191527 |

---

See accompanying notes to the unaudited condensed consolidated financial statements.

**QHSLab, Inc.**

Condensed Consolidated Statements of Stockholders' Equity (Deficit)

(Unaudited)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Preferred Stock- <br> Series A | Preferred Stock- <br> Series A | Preferred Stock - <br> Series A-2 | Preferred Stock - <br> Series A-2 | Common Stock | Common Stock | | | |
|  | Shares | Amount | Shares | Amount | Shares | Amount | Additional Paid-In<br>Capital | Accumulated<br>Deficit | Total Stockholders' Equity<br>(Deficit) |
| Balance at January 1, 2025 | 1080092 | $108 | 2644424 | $264 | 10806527 | $1081 | $3722141 | $(4331350) | $(607756) |
| &nbsp;&nbsp;&nbsp;Shares issued for services |  |  |  |  | 100000 | 10 | 20990 |  | 21000 |
| &nbsp;&nbsp;&nbsp;Conversion of notes payable |  |  |  |  | 375000 | 37 | 74963 |  | 75000 |
| &nbsp;&nbsp;&nbsp;Net loss | - | - | - | - | - | - | - | (79609) | (79609) |
| Balance at March 31, 2025 | 1080092 | $108 | 2644424 | $264 | 11281527 | $1128 | $3818094 | $(4410959) | $(591365) |
| Balance at January 1, 2026 | 1080092 | $108 | 2644424 | $264 | 15032788 | $1503 | $5526604 | $(3903551) | $1624928 |
| &nbsp;&nbsp;&nbsp;Net loss | - | - | - | - | - | - | - | (103906) | (103906) |
| Balance at March 31, 2026 | 1080092 | $108 | 2644424 | $264 | 15032788 | $1503 | $5526604 | $(4007457) | $1521022 |

---

See accompanying notes to the unaudited condensed consolidated financial statements.

**QHSLab, Inc.**

Condensed Consolidated Statements of Cash Flows

(Unaudited)

---

| | | |
|:---|:---|:---|
|  | For the Three Months Ended March 31, 2026 | For the Three Months Ended <br>March 31, 2025 |
| Operating activities |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(103906) | $(79609) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for doubtful accounts |  | 7276 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets and capitalized software | 18028 | 36644 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares issued for services |  | 21000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in net assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (10592) | (6165) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | 8273 | 12587 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (7799) | (14788) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (108295) | (22194) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 4049 | (4300) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash flows from operating activities | (200242) | (49549) |
| Financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Repayments of loan borrowings | (73827) | (46554) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash flows from financing activities | (73827) | (46554) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in cash | (274069) | (96103) |
| Cash and cash equivalents – beginning of year | 636157 | 157168 |
| Cash and cash equivalents - end of period | $362088 | $61065 |
| Supplemental disclosures of cash flow activity: |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | $7307 | $75493 |
| &nbsp;&nbsp;&nbsp;Cash paid for taxes | $- | $- |
| Supplemental noncash investing and financing activity: |  |  |
| &nbsp;&nbsp;&nbsp;Debt and accrued interest converted to shares of common stock | $- | $75000 |

---

See accompanying notes to the unaudited condensed consolidated financial statements.

**QHSLab, Inc.**

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

**Note 1. The Company**

QHSLab, Inc. (the "Company") was incorporated in Delaware on September 1, 1983. In 2019, the Company became engaged in value-based healthcare, informatics and algorithmic personalized medicine including digital therapeutics, behavior based remote patient monitoring, chronic care and preventive medicine. On September 23, 2021, the Company changed its state of incorporation from Delaware to Nevada. On April 19, 2022, the Company changed its name to QHSLab, Inc.

The Company is a medical device technology and software-as-a-service ("SaaS") company focused on enabling primary care physicians ("PCPs") to increase their revenues by providing them with relevant, value-based tools to evaluate and treat chronic disease as well as provide preventive care through reimbursable procedures and providing physicians' offices with agreed-upon clinical decision support, digital health assessments, administrative workflow, and reimbursement support services.

**Note 2. Going Concern**

The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company had an accumulated deficit of $4,007,457 at March 31, 2026, generated a net loss of $103,906 for the three months ended March 31, 2026 and generated net income of $457,417 for the year ended December 31, 2025, principally as a result of a gain of $1,145,695 on the extinguishment of debt. The Company used cash in operations of $200,242 in the quarter ended March 31, 2026, and generated cash from operations of $178,118 in the year ended December 31, 2025. Despite the extinguishment of much of the Company's debt, the Company's history of losses combined with the amount of its revenues, raise substantial doubt about the Company's ability to continue as a going concern. The continuation of the Company's business is dependent upon its ability to achieve and maintain positive cash flows and continual profitability and, pending such achievement, future issuances of equity or other financings to fund ongoing operations. However, access to such funding may not be available on commercially reasonable terms, if at all. These consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

**Note 3. Basis of Presentation**

The condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of only normal recurring accruals, necessary for a fair statement of financial position, results of operations, and cash flows. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and the accompanying notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

The accounting policies are described in the "Notes to the Consolidated Financial Statements" in the 2025 Annual Report on Form 10-K and updated, as necessary, in this Form 10-Q. The year-end balance sheet data presented for comparative purposes was derived from audited consolidated financial statements but does not include all disclosures required by U.S. GAAP. The results of operations for the three months ended March 31, 2026 are not necessarily indicative of the operating results for the full year or for any other subsequent interim period.

***Segment Information***

The Company operates as a single operating segment and single reportable segment. Operating segments are defined as components of a business that can earn revenue and incur expenses and for which discrete financial information is evaluated regularly by the chief operating decision maker ("CODM") in deciding how to allocate resources and assess performance. The Company's CODM, the Chief Executive Officer ("CEO"), allocates resources and assesses performance based upon condensed consolidated financial information due to the interconnected relationship of the Company's products to the same customers, therefore manages its business as a single operating segment. See Note 13 - Segment Information for additional information.

***Accounting Policies***

*Use of Estimates:* The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates.

*Principles of Consolidation*: The condensed consolidated financial statements include the accounts of QHSLab, Inc. and its wholly owned subsidiaries USAQ Corporation, Inc., and Medical Practice Income, Inc. All significant inter-company balances and transactions have been eliminated.

*Cash and Cash Equivalents:* For financial statement presentation purposes, the Company considers those short-term, highly liquid investments with original maturities of three months or less to be cash or cash equivalents. Cash and cash equivalents are maintained at banks believed to be stable, occasionally at amounts in excess of federally insured limits, which represents a concentration of credit risk. The Company has not experienced any losses on deposits of cash and cash equivalents to date.

*Accounts Receivable:* The Company extends unsecured credit to its customers on a regular basis. Management monitors the payments on outstanding balances and estimates future expected credit losses over the life of the receivables based on past experience, current information and forward-looking economic considerations and adjusts the reserve for uncollectible balances as necessary. The Company controls its credit risk related to accounts receivable through credit approvals and monitoring. The Company had no customers that generated 10% or more of its revenue during the three-month period ended March 31, 2026. The Company had one customer that generated 10% or more of its revenue during the three-month period ended March 31, 2025 with 13.8% of revenue. As of March 31, 2026, one customer comprised greater than 10% of the outstanding accounts receivable balance at 16.3%. As of December 31, 2025, two customers comprised greater than 10% of the outstanding accounts receivable balance at 16.7% and 10.2%.

*Inventories:* Inventories are stated at the lower of cost or estimated net realizable value, on a first-in, first-out, or FIFO, basis. The Company uses actual costs to determine its cost basis for inventories. Inventories consist of only finished goods. Management monitors inventory based on forecasted sales and existing inventory levels. Based on inventory turnover and low on-hand inventory levels, management has determined there was no need for a reserve for slow-moving and obsolete inventories as of March 31, 2026 and December 31, 2025.

*Capitalized Software Development Costs:* Software development costs for internal-use software are accounted for in accordance with Accounting Standards Codification ("ASC") 350-40, *Internal-Use Software*. Development costs that are incurred during the application development stage begin to be capitalized when two criteria are met: (i) the preliminary project stage is completed and (ii) it is probable that the software will be completed and used for its intended function. Capitalization ceases once the software is substantially complete and ready for its intended use.

Costs incurred during the preliminary project stage of software development and post-implementation operating stages are expensed as incurred. Amortization is calculated on a straight-line basis over three years which is the estimated economic life of the software and is included in the cost of revenue on the consolidated statements of operations.

The estimated useful lives of software are reviewed at least annually and will be tested for impairment whenever events or changes in circumstances occur that could impact the recoverability of the assets.

*Intangible Assets:* Intangible assets represent the value the Company paid to acquire assets including a trademark, patent and web domain on June 23, 2021. The allocation of the purchase price to each of these assets was determined based on ASC 805-50-30, *Business Combination, Related Issues, Initial Measurement*. These assets are accounted for in accordance with ASC 350-30, *Intangibles, General Intangibles Other Than Goodwill*. The cost of the assets is amortized over the remaining useful life of the assets as follows:

---

| | |
|:---|:---|
| U.S. Method Patent | 13.4 years |
| Web Domain | Indefinite life |
| Trademark | Indefinite life |

---

The estimated useful lives and carrying value of the assets are reviewed at least annually or whenever events or circumstances occur which may result in an impact to the value of the assets.

*Convertible Notes Payable:* The Company accounts for convertible notes deemed conventional and conversion options embedded in non-conventional convertible notes which qualify as equity under Accounting Standards Update ("ASU") No. 2020-06, *Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity* ("ASU 2020-06"), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including certain convertible instruments and contracts on an entity's own equity. ASU 2020-06 removes the separation models required for convertible debt with cash conversion features and convertible instruments with beneficial conversion features. It also removes certain settlement conditions that were required for equity contracts to qualify for the derivative scope exception and simplifies the diluted earnings per share calculation for convertible instruments. Accordingly, the Company records, as a discount to convertible notes, the intrinsic value of such conversion options based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt.

*Revenue Recognition:* Pursuant to ASC Topic 606, *Revenue from Contracts with Customers* ("ASC 606") the Company recognizes revenue upon transfer of control of goods, in an amount that reflects the consideration that is expected to be received in exchange for those goods. The Company does not allow for the return of products and therefore does not establish an allowance for returns.

To determine the revenue to be recognized for transactions that the Company determines are within the scope of ASC 606, the Company follows the established five-step framework as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) identify
 the contract(s) with a customer;

(ii) identify
 the performance obligations in the contract(s);

(iii) determine
 the transaction price;

(iv) allocate
 the transaction price to the performance obligations in the contract(s); and

(v) recognize
 revenue when (or as) the Company satisfies a performance obligation.

The Company sells allergy diagnostic-related products and immunotherapy treatments to physicians. Revenue is recognized once the Company satisfies its performance obligation which occurs at the point in time when title and possession of products have transitioned to the customer. Beginning April 1, 2025, the Company changed its policy of when title transitions to its customers from upon delivery to upon shipment. Delivery typically occurred within one or two days of shipment, and the Company limited shipping ahead of the end of each reporting period to allow time for delivery. Revenue continues to be recorded when title passes to the customer and, as a result, the change did not have a material impact on the Company's previously issued consolidated financial statements.

The Company includes shipping and handling fees billed to customers in revenue.

The Company also generates revenue through SaaS agreements whereby the Company provides physicians' practices access to its proprietary internally-developed software QHSLab that provides clinical decision support and patient monitoring. The agreements provide for either monthly or annual access to the software. The access to the system begins immediately and revenue is recognized over the agreement term.

The Company provides administrative, billing and clinical decision support services utilizing QHSLab. Revenue is recognized each month based on actual services provided during that month.

The Company has entered into an agreement with a third party to provide clinical research services utilizing QHSLab. The agreement details the performance obligations of the Company and revenue is recognized as those obligations are met.

There are several practical expedients and exemptions allowed under ASC 606 that impact timing of revenue recognition and disclosures. The Company elected to treat similar contracts as a portfolio of contracts, as allowed under ASC 606. The contracts that fall within the portfolio have the same terms and management has the expectation that the result will not be materially different from the consideration of each individual contract.

The Company's revenues consisted of the following:

Schedule of Revenue Recognition

---

| | | |
|:---|:---|:---|
|  | **For the Three Months<br> Ended<br> March 31,** | **For the Three Months<br> Ended<br> March 31,** |
|  | **2026** | **2025** |
| Allergy Diagnostic Kit Sales | $228770 | $264913 |
| Integrated Service Program | 374501 | 162502 |
| Immunotherapy Treatment Sales | 91070 | 97329 |
| Clinical Study Revenue |  | 89100 |
| Subscription Revenue | 11948 | 9285 |
| Shipping and handling | 11640 | 9970 |
| Training and Other Revenue | 10756 | 12320 |
| Total Revenue | $728685 | $645419 |

---

*Research and Development:* Research and development expense is primarily related to developing and improving methods related to the Company's SaaS platform. Research and development expenses are expensed when incurred. For the three months ended March 31, 2026 and 2025, there was $120,909 and $124,033 of research and development expenses incurred, respectively.

 

*Stock-based Compensation:* The Company applies the fair value method of ASC 718, *Share Based Payment*, in accounting for its stock-based compensation. The standard states that compensation cost is measured at the grant date based on the fair value of the award and is recognized over the service period, which is usually the vesting period. The Company values stock-based compensation at the market price for the Company's common stock and other pertinent factors at the grant date.

*Earnings Per Common Share:* Basic net earnings or (loss) per share is computed using the weighted average number of common shares outstanding during the period. Diluted net earnings or (loss) per common share is computed using the weighted average number of common and dilutive equivalent shares outstanding during the period. Dilutive common equivalent shares consist of options and warrants to purchase common stock (only if those options and warrants are exercisable and at prices below the average share price for the period) and shares issuable upon the conversion of issued and outstanding preferred stock. Due to the net losses reported for the three month periods ended March 31, 2026 and 2025, dilutive common equivalent shares were excluded from the computation of diluted loss per share, as inclusion would be anti-dilutive for those periods. There were no common equivalent shares required to be added to the basic weighted average shares outstanding to arrive at diluted weighted average shares outstanding as of March 31, 2026 or 2025.

*Income Taxes:* The Company accounts for income taxes in accordance with ASC 740, *Income Taxes,* which requires recognition of estimated income taxes payable or refundable on income tax returns for the current year and for the estimated future tax effect attributable to temporary differences and carry-forwards. Measurement of deferred income tax is based on enacted tax laws including tax rates, with the measurement of deferred income tax assets being reduced by available tax benefits not expected to be realized.

The Company has net operating loss carry forwards of $4,007,457 which begin to expire in 2027. Future utilization of currently generated federal and state NOL and tax credit carry forwards may be subject to a substantial annual limitation due to the ownership change limitations. The annual limitation may result in the expiration of NOL and tax credit carry-forwards before full utilization.

*Recently Issued Accounting Standards*

In July 2025, the FASB issued ASU 2025-05, *Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets* ("ASU 2025-05"), which simplifies the estimation of credit losses on current accounts receivable and contract assets arising from transactions accounted for under ASC 606 through the use of a practical expedient. ASU 2025-05 is effective for annual periods beginning after December 15, 2025, and interim reporting periods within that annual period, with early adoption permitted. The Company adopted this standard in 2026 and determined that it did not have a material impact on the Company's financial statements.

In December 2023, the FASB issued ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures* ("ASU 2023-09"), which requires enhanced income tax disclosures, including specific categories and disaggregation of information in the effective tax rate reconciliation, disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company adopted ASU 2023-09 beginning with the Form 10-Q for the period ending March 31, 2025 with minimal impact. See Note 12 – Income Taxes.

This Quarterly Report on Form 10-Q does not discuss recent pronouncements that are not anticipated to have a current and/or future impact on or are unrelated to the Company's financial condition, results of operations, cash flows or disclosures.

**Note 4. Accounts Receivable**

Accounts receivable is recorded in the condensed consolidated balance sheets when customers are invoiced for revenue to be collected and there is an unconditional right to receive payment. Timing of revenue recognition may differ from the timing of invoicing customers resulting in deferred revenue until the Company satisfies its performance obligation.

Accounts receivable is presented net of an allowance for doubtful accounts that represents future expected credit losses over the life of the receivables based on past experience, current information and forward-looking economic considerations. The beginning and ending balances of accounts receivable, net of allowance, are as follows:

Schedule of Accounts Receivable

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| | | |
|:---|:---|:---|
|  | March 31,<br> 2026 | December 31, <br> 2025 |
| Accounts receivable | $231202 | $220610 |
| &nbsp;&nbsp;&nbsp;Allowance for doubtful accounts | (30000) | (30000) |
| Accounts receivable, net | $201202 | $190610 |

---

**Note 5. Capitalized Software and Intangible Assets**

Non-current assets consist of the following at March 31, 2026 and December 31, 2025:

---

| | | | |
|:---|:---|:---|:---|
|  | Estimated<br> Useful Life <br> (in years) | March 31, <br> 2026 | December 31, <br> 2025 |
| Capitalized software | 3.0 | $223390 | $223390 |
| &nbsp;&nbsp;&nbsp;Accumulated amortization |  | (223390) | (223390) |
| Capitalized software, net |  | $- | $- |
| Intangible Assets: |  |  |  |
| U.S. Method Patent | 13.4 | $967500 | $967500 |
| Web Domain | N/A | 161250 | 161250 |
| Trademark | N/A | 483750 | 483750 |
| Total Intangible assets |  | $1612500 | $1612500 |
| &nbsp;&nbsp;&nbsp;Accumulated amortization |  | (342531) | (324503) |
| Intangible assets, net |  | $1269969 | $1287997 |

---

Capitalized software represents the development costs for the Company's internal-use QHSLab platform software. The Company completed testing of its QHSLab platform software application at the end of the first quarter of 2022 and began to amortize the capitalized expenses on a straight-line basis over the useful life of the software. During the three months ended March 31, 2026 and 2025 there was $0 and $18,616 of amortization expense respectively. Amortization related to the QHSLab platform is recorded within cost of revenue on the Company's condensed consolidated statements of operations. There were no impairments recognized during the three-month period ended March 31, 2026 and the year ended December 31, 2025.

The intangible assets represent the value the Company paid to acquire the trademark "AllergiEnd", the web domain "AllergiEnd.com" along with the U.S. Method Patent registration relating to the allergy testing kit and related materials the Company distributes to physician clients. The Company acquired the intangible assets from MedScience Research Group as of June 23, 2021 for total consideration of $1,612,500 which was financed through a combination of restricted stock and a promissory note. The allocation of the purchase price to each of these assets was determined based on ASC 805-50-30, *Business Combination, Related Issues, Initial Measurement.* The assets are being amortized over their useful lives beginning July 1, 2021. The Trademark and Web Domain are determined to have an indefinite life and will be tested annually for impairment in accordance with ASC 350-30-35, *Intangibles, General Intangibles Other Than Goodwill*. There was $18,028 of amortization expense during each of the quarters ended March 31, 2026 and 2025.

The Company evaluates intangible assets with infinite lives for impairment at least annually and evaluates intangible assets with finite lives when events or circumstances indicate an impairment may exist. No impairments or changes in useful lives were recognized during the three-month period ended March 31, 2026 and the year ended December 31, 2025.

**Note 6. Loans Payable**

On November 12, 2025, the Company entered into a fixed-fee short-term loan with its merchant bank and received $114,400 in net loan proceeds. The loan is repaid by the merchant bank withholding an agreed-upon percentage of payments they process on behalf of the Company with a minimum of $14,262 paid every 60 days. The loan payable is due in May 2027. As of March 31, 2026, the loan balance was $36,877 and is recorded in current liabilities on the condensed consolidated balance sheet. As of December 31, 2025, the loan balance was $90,704 and is split between current and non-current liabilities on the condensed consolidated balance sheets.

See additional discussion of loans payable in Note 11 – Related Party Transactions.

**Note 7. Convertible Notes Payable**

Convertible notes payable at March 31, 2026 and December 31, 2025 consist of the following:

Schedule of Convertible Notes Payable

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| | | |
|:---|:---|:---|
|  | March 31, <br> 2026 | December 31, <br> 2025 |
| Note 1 – Shareholder | $- | $20000 |
|  | - | 20000 |
| Less: current portion | - | 20000 |
| Non-current portion | $- | $- |

---

Note 1 – Effective May 7, 2021, the Company issued a Convertible Promissory Note in the original principal amount of $100,000 to a shareholder (Note 1). The Note bears interest at a rate of ten percent (10%) per annum. The terms and conditions of the Note may not be indicative of those that a third-party investor may agree to. The Note was originally scheduled to mature on September 30, 2022. The maturity date was subsequently extended to December 31, 2023, further extended to December 31, 2024 during the quarter ended March 31, 2024, and further extended to December 31, 2025 during the quarter ended March 31, 2025. Pursuant to the terms of the Note, the outstanding principal and accrued interest were convertible, at the option of the holder, into shares of the Company's common stock at a conversion price equal to the greater of (i) a twenty-five percent (25%) discount to the fifteen-day average market price of the Company's common stock or (ii) $0.50 per share.

On December 31, 2025, the Company entered into a Promissory Note Modification and Partial Conversion Agreement ("Modification Agreement") with the holder of the Note. As of that date, the outstanding balance of the Note, including accrued interest, was $146,548. Pursuant to the Modification Agreement, the holder elected to convert $126,548 of outstanding principal and accrued interest into shares of the Company's common stock at a conversion price of $0.30 per share. As a result of the conversion, the Company issued 421,827 shares of common stock. The converted portion of the Note was extinguished upon issuance of the shares.

Following the partial conversion, a remaining balance of $20,000 continued to be outstanding under the Note as of December 31, 2025 and the maturity date was extended to December 31, 2026. The remaining balance continued to bear interest at ten percent (10%) per annum and remained convertible at the option of the holder under the terms of the original Convertible Promissory Note. The Company could prepay the remaining balance, in whole or in part, at any time prior to maturity without penalty.

The balance of the Note was paid off in February 2026. The balance of the Note, including accrued interest, was $0 and $20,000 as of March 31, 2026 and December 31, 2025, respectively, and were included in other current liabilities on the accompanying condensed consolidated balance sheets.

**Note 8. Preferred Stock and Private Placement Offering of Common Stock**

***Issuance of Common Stock and Warrants in a Private Placement Offering***

 ****

On December 26, 2025, the Company accepted subscription agreements from two accredited investors for the purchase of $499,998 of the Company's common stock and warrants in a private placement offering. Pursuant to the subscription agreements, the Company issued an aggregate of 1,666,663 shares of common stock, par value $0.0001 per share, at a purchase price of $0.30 per share, together with an aggregate of 416,666 warrants to purchase shares of common stock. Each warrant is exercisable at an exercise price of $0.60 per share and expires on December 31, 2030.

 ****

***Issuance of Series A Preferred Stock***

The shares of Series A Preferred Stock have a stated value of $0.25 per share and are initially convertible into shares of common stock at a price of $0.05 per share (subject to adjustment upon the occurrence of certain events). The Series A Preferred Stock does not accrue dividends and ranks prior to the common stock upon a liquidation of the Company. The Series A Preferred Stock votes on all matters brought before the shareholders together with the common stock as a single class and each share of Series A Preferred Stock has a number of votes, initially 5, equal to the number of shares of common stock into which it is convertible as of the record date for any vote.

***Issuance of Series A-2 Preferred Stock***

The shares of Series A-2 Preferred Stock have a stated value of $0.16 per share and are convertible into shares of common stock at a price of $0.16 per share (subject to adjustment upon the occurrence of certain events). The rights of holders of the Company's common stock with respect to the payment of dividends and upon liquidation are junior in right of payment to holders of the Series A-2 Convertible Preferred Shares. The rights of the holders of the Company's Series A-2 Preferred Shares are pari passu to the rights of the holders of the Company's Series A Preferred Shares currently outstanding.

Holders of the Series A-2 Convertible Preferred Stock will vote on an as converted basis with the holders of the Company's common stock and Series A Preferred Stock as to all matters to be voted on by the holders of the common stock. Each Series A-2 Preferred Share shall be entitled to a number of votes equal to five times the number of shares of common stock into which it is then convertible on the applicable record date.

Holders of the Series A-2 Convertible Preferred Stock are entitled to receive cumulative dividends at an annual rate of 7% and payable annually in cash or shares of common stock at the election of the Company in accordance with the Series A-2 Convertible Stock agreement. As of December 31, 2025, the holders of the Series A-2 Preferred Stock had received 94,339 shares of common stock in satisfaction of dividends accrued through December 31, 2025.

**Note 9. Income and (Loss) Per Common Share**

The Company calculates net income or loss per common share in accordance with ASC 260, *Earnings Per Share*. Basic and diluted net income (loss) per common share were determined by dividing net income (loss) applicable to common stockholders by the weighted average number of common shares outstanding during the period.

The Company's potentially dilutive shares include shares issuable upon exercise or conversion of outstanding common stock options, common stock warrants, convertible debt and preferred shares, if those options, warrants, debt and preferred shares are exercisable or convertible and at prices below the average share price for the period.

For the year ended December 31, 2025, 8,044,884 of common equivalent shares related to Preferred Shares A and A-2 were added to the basic weighted average shares outstanding to arrive at the diluted weighted average shares outstanding while other potentially dilutive shares were excluded from the calculation based on the exercises price of those shares. For the periods ended March 31, 2026 and 2025, the Company's potentially dilutive shares were excluded from the computation of diluted loss per share, as inclusion would be anti-dilutive since the Company incurred a loss in such period.

Schedule of Anti-dilutive Securities Excluded from Calculation of Earnings Per Share

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| | | |
|:---|:---|:---|
|  | Three Months Ended<br> March 31, | Three Months Ended<br> March 31, |
|  | 2026 | 2025 |
| Common equivalent shares | 8044884 | 8044884 |
| Stock options |  | 600000 |
| Stock warrants | 416666 | 550000 |
| Total shares excluded from calculation | 416666 | 1150000 |

---

**Note 10. Stock-based Compensation**

During the three-month periods ended March 31, 2026 and 2025, there was no stock-based compensation associated with stock options included in research and development expense. The Company issued 100,000 shares of common stock for services during each of the years ended December 31, 2025 and 2024. A portion of these shares related to services that had not yet been performed at the time of issuance and were recorded as prepaid expenses. Such prepaid amounts were subsequently recognized as expense as the related services were performed. Accordingly, the Company recognized $1,888 of expense in each three-month period ended March 31, 2026 and 2025 associated with shares issued for services in research and development, and $1,750 and $3,500, respectively, in general and administrative expense.

There were no options granted during the three months ended March 31, 2026 and 2025. There were no options exercised, forfeited or cancelled during either period but all options did expire during the year ended December 31, 2025.

Options outstanding at March 31, 2025 consist of:

Schedule of Options Outstanding and Exercisable

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| | | | | |
|:---|:---|:---|:---|:---|
| Date Issued | Number <br>Outstanding | Number <br>Exercisable | Exercise Price | Expiration Date |
| June 27, 2020 | 150000 | 150000 | $0.40 | June 27, 2025 |
| January 1, 2021 | 450000 | 450000 | $0.65 | December 31, 2025 |
| **Total** | **600000** | **600000** |  |  |

---

During the quarter ended March 31, 2025, 500,000 outstanding options expired.

Warrants outstanding at March 31, 2026 consist of:

Schedule of Warrants Outstanding and Exercisable

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| | | | | |
|:---|:---|:---|:---|:---|
| Date Issued | Number <br>Outstanding | Number <br>Exercisable | Exercise Price | Expiration Date |
| December 31, 2025 | 416666 | 416666 | $0.60 | December 31, 2030 |
| **Total** | **416666** | **416666** |  |  |

---

Warrants outstanding at March 31, 2025 consist of:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Date Issued | Number <br>Outstanding | Number <br>Exercisable | Exercise Price | Expiration Date |
| July 19, 2022 | 550000 | 550000 | $0.50 | July 18, 2025 |
| **Total** | **550000** | **550000** |  |  |

---

**Note 11. Related Party Transactions**

*Due to Related Parties:* Amounts due to related parties consist of cash advances received from the Company's principal shareholder. Some advances bear no interest and are due on demand while a portion has been converted into a loan to the principal shareholder that provides interest at a rate of 10% per annum and matures on March 31, 2027. These terms and conditions may not be indicative of what a third-party investor may agree to. As of March 31, 2026, $93,304 is included in current liabilities on the condensed consolidated balance sheet as a $90,000 loan and accrued interest that matures on March 31, 2027. As of December 31, 2025, the balance was $91,085 and included in non-current liabilities on the condensed consolidated balance sheet.

The Company's CEO and principal shareholder is a shareholder of MedScience. In addition, the CEO provides services to MedScience for which he is compensated.

**Note 12. Income Taxes**

The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which requires recognition of estimated income taxes payable or refundable on income tax returns for the current year and for the estimated future tax effect attributable to temporary differences and carry-forwards. Measurement of deferred income tax is based on enacted tax laws including tax rates, with the measurement of deferred income tax assets being reduced by available tax benefits not expected to be realized. Given its history of net operating losses, the Company has determined that it is more likely than not that it will not be able to realize the tax benefit of its net operating loss carryforwards. Accordingly, the Company has not recognized a deferred tax asset for this benefit.

The valuation allowance at March 31, 2026 and December 31, 2025 was $815,993 and $794,639, respectively. The net change in valuation allowance for the quarter ended March 31, 2026 was an increase of $21,354 and for the year ended December 31, 2025 was a decrease of $96,285. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. That realization is dependent upon the future generation of taxable income during the period in which those temporary differences become deductible. The Company considers the scheduled reversal of deferred income tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on these considerations, the Company has determined that enough uncertainty exists regarding the realization of the deferred tax asset balance to apply a full valuation allowance against these assets as of March 31, 2026 and December 31, 2025. All tax years remain open for examination by taxing authorities.

Reconciliation between the provision for income taxes and the expected tax benefit using the federal statutory rate of 21% for 2026 and 2025 are as follows:

Schedule of Effective Income Tax Reconciliation

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| | | |
|:---|:---|:---|
|  | **March 31,** <br> **2026** | **December 31,** <br> **2025** |
| Income tax at federal statutory rate | 21.00% | 21.00% |
| Valuation allowance | (21.00)% | (21.00)% |
| Income tax expense |  |  |

---

The Company has net operating losses of $4,007,457 which begin to expire in 2027. Future utilization of currently generated federal and state NOL and tax credit carry forwards may be subject to a substantial annual limitation due to the ownership change limitations. The annual limitation may result in the expiration of NOL and tax credit carry-forwards before full utilization.

For the three-month period ended March 31, 2026, the Company did not record a tax provision. The Company continues to maintain a valuation allowance against its net deferred tax assets, which will be reassessed as additional information becomes available.

**Note 13. Segment Information**

The Company's CEO is the CODM and allocates resources and assesses performance based upon consolidated net loss that is included in the accompanying consolidated condensed statements of operations. Accordingly, the Company operates as a single operating segment. The measure of segment assets is reflected as total assets in the accompanying consolidated condensed balance sheets. The Company's revenue is derived from providing PCPs with relevant value-based tools to enable them to diagnosis and treat their patients. See additional discussion of revenue in Note 3 - Basis of Presentation.

**Note 14. Commitments and Contingencies**

There are no pending or threatened legal proceedings as of March 31, 2026. The Company has no non-cancellable operating leases.

**Note 15. Subsequent Events**

Management has evaluated subsequent events through the date of this filing.

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

*The following discussion provides information which management believes is relevant to an assessment and understanding of our results of operations and financial condition. The discussion should be read along with our unaudited condensed consolidated financial statements for the three months ended March 31, 2026 and 2025 and notes thereto contained elsewhere in this Report, and our annual report on Form 10-K for the twelve months ended December 31, 2025 including the consolidated financial statements and notes thereto contained in such Report. The following discussion and analysis contains forward-looking statements, which involve risks and uncertainties. Our actual results may differ significantly from the results, expectations and plans discussed in these forward-looking statements. See "Cautionary Note Concerning Forward-Looking Statements."*

*Overview*

We are a medical device technology and SaaS company focused on enabling PCPs and other healthcare providers to increase their revenues by providing them with relevant, value-based tools to evaluate and treat chronic disease as well as provide preventive care through reimbursable procedures. In some cases, the products we provide our physician clients will enable them to diagnose and treat patients with chronic diseases which they historically have referred to specialists, allowing them to increase their practice revenue. As part of our mission, we are providing PCPs and other healthcare providers with the software, training and devices necessary to allow them to treat their patients using value-based healthcare, informatics and personalized medicine. Our digital healthcare, clinical decision support and point of care solutions also support non face to face remote patient and therapeutic monitoring, to address chronic care and preventive medicine and are reimbursable to the medical practice.

Increasingly, regulators and insurance companies have come to recognize what health care technologists have been saying for nearly 20 years, which is that most chronic conditions are better managed with more frequent and short encounters often without a physician's direct participation, rather than infrequent visits. More health insurers have realized that Artificial Intelligence ("AI") enabled digital medicine technologies such as those provided through our proprietary internally-developed Quality Health System Lab Expert System software ("QHSLab") can provide the necessary encounters to foster patient compliance in between face to face visits to a physician.

Based on the success of PCPs using our QHSLab allergy diagnostics combined with the products acquired from MedScience Research Group, Inc. ("MedScience"), we intend to increase our revenues by charging physicians a monthly subscription fee for the use of QHSLab and soliciting additional PCPs to increase their revenues by using our proven revenue generating QHSLab and AllergiEnd® line of products. We also plan to introduce additional point of care diagnostics and treatments, and digital medicine programs that PCPs can use and prescribe in their practices. In all cases, PCPs will be paid under existing government and private insurance programs, based upon analyses conducted utilizing QHSLab and treatments provided as a result of such analyses.

Our ability to operate profitably is determined by our ability to generate revenues from the licensing of our QHSLab software and the sale of diagnostic related products and treatment protocols and the provision of services through our QHSLab system. Our ability to generate a profit from these sales is determined by our ability to increase the number of physicians using these products. We will continue to upgrade QHSLab in an effort to increase the number of products sold based upon the services it can provide and for which we are able to charge a fee.

We operate as a single operating segment and single reportable segment. Operating segments are defined as components of a business that can earn revenue and incur expenses and for which discrete financial information is evaluated regularly by the CODM in deciding how to allocate resources and assess performance. Our CODM, the Chief Executive Officer, allocates resources and assesses performance based upon condensed consolidated financial information and due to the interconnected relationship of our products which are predominately offered to the same class of customer, manages our business as a single operating segment.

During the fourth quarter of 2020 we began to sell the Allergi*End*® Products, consisting of Allergi*End*® Allergy Diagnostics and Allergen Immunotherapy treatments, to physicians. During the second quarter of 2022, we began to enter into SaaS subscription agreements to provide physicians with access to our proprietary internally-developed QHSLab platform software that provides clinical decision support and patient monitoring for numerous chronic conditions seen in primary care settings including allergy, asthma, anxiety, depression, chronic pain, and sleep disorders for example. During the fourth quarter of 2022, we began entering into Integrated Service Program (ISP) agreements to provide physicians' offices with agreed-upon clinical decision support, digital health assessments, administrative workflow, and reimbursement support services utilizing our QHSLab platform.

*Results of Operations during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025.*

Revenues

For the period ended March 31, 2026, we generated revenues of $728,685 compared to $645,419 of revenues for the period ended March 31, 2025. The increase in revenues for the period ended March 31, 2026, is attributed to the growth of the revenue associated with ISP services which more than made up for the inclusion of revenues in the March 31, 2025, quarter as a result of the achievement of the performance obligations associated with a clinical study undertaken by us pursuant to an agreement with a third party which was not replicated in the period ended March 31, 2026. ISP Revenue increased 130.5% to $374,501 compared to $162,502 in the first quarter of 2025.

Our revenues consisted of the following:

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| | | |
|:---|:---|:---|
|  | **For the Three Months Ended** | **For the Three Months Ended** |
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
| Integrated Service Program | $374501 | $162502 |
| Allergy Diagnostic Kit Sales | 228770 | 264913 |
| Immunotherapy Treatment Sales | 91070 | 97329 |
| Clinical Study Revenue |  | 89100 |
| Subscription Revenue | 11948 | 9285 |
| Shipping and handling | 11640 | 9970 |
| Training and Other Revenue | 10756 | 12320 |
| Total revenue | $728685 | $645419 |

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Cost of Revenues and Gross Profit

Cost of revenues consists of the cost of the Allergi*End*® test kits and allergen immunotherapy pharmacy prepared treatment sets, shipping costs to our customers as well as administrative services and labor expenses directly related to ISP sales and the amortization of our capitalized software.

For the three months ended March 31, 2026 and 2025, cost of revenues was $257,882 and $215,475, respectively.

The Company generated gross profit of $470,803 for the three months ended March 31, 2026, compared to $429,944 for the three months ended March 31, 2025, an increase of $40,859, or 9.5%. Gross margin decreased from 66.6% for the three months ended March 31, 2025 to 64.6% for the three months ended March 31, 2026.

The decrease in gross margin was primarily due to changes in revenue mix, including growth in the Company's ISP revenue and the introduction of a new service line that includes revenue-sharing arrangements with a third-party provider. This service line contributed to the increase in total revenue and gross profit in absolute dollars but carries a higher cost of revenue relative to the Company's other offerings, resulting in a lower overall gross margin percentage.

Management believes the increase in gross profit reflects continued growth in the Company's operations. The change in gross margin is consistent with the Company's evolving revenue mix and does not reflect a decline in the cost structure of its core product lines, which continue to benefit from operational efficiencies and prior cost optimization initiatives.

As we continue to introduce new products at an early stage in our development cycle, the gross margins may vary significantly between periods, due, among other things, to differences among our customers and products sold, customer negotiating strengths, and product mix.

Sales and Marketing

Sales and marketing expenses consist primarily of costs associated with selling and marketing our products to PCPs, principally ongoing sales efforts to recruit new PCPs and maintain our relationships with PCPs already using our software and products. These expenses include employee compensation and costs of consultants.

For the three months ended March 31, 2026, sales and marketing expenses totaled $218,424 compared to $144,399 for the three months ended March 31, 2025, an increase of $74,025.

The increase in sales and marketing expenses for the period ended March 31, 2026 compared to the same period in 2025 relate to an increase in payroll-related and strategic marketing expenses as we invest in more sales and marketing activities to support our increasing ISP revenue. We expect our sales and marketing expenses to increase as we seek to build our customer base and launch additional products. Nevertheless, if we are successful in onboarding a sufficient number of PCPs and maintaining our relationships with these PCPs once they begin to fully utilize our products, sales and marketing expenses could decrease as a percentage of revenues, though we may increase our marketing efforts as funds become available.

General and Administrative

General and administrative expenses consist primarily of costs associated with operating a business including accounting, legal and management consulting fees.

For the three months ended March 31, 2026, general and administrative expenses totaled $207,822, an increase of $52,299, compared to $155,523 for the three months ended March 31, 2025. The increase is primarily due to increased payroll-related expenses associated with expanding strategic and operational roles to support growing operations along with other operational expenses such as rent, insurance and accounting fees.

Research and Development

Research and development ("R&D") includes expenses incurred in connection with the research and development of our medical device technology solution, including software development. R&D costs are expensed as they are incurred.

For the three months ended March 31, 2026, R&D expenses totaled $120,909, a decrease of $3,124 compared to $124,033 for the three months ended March 31, 2025.

The decrease in R&D expenses for the period ended March 31, 2026, as compared to 2025, was driven by maintaining software development expenses level as we continue to expand the commercialization of our QHSLab platform software while investing more in sales and marketing efforts during the period. We expect that our R&D expenses will increase as we invest in and expand our operations and further develop new products and services as part of the Company's growth strategy.

Other Income and Expense

For the three months ended March 31, 2026, interest expense decreased by $58,044 to $9,526 from $67,570 for the three months ended March 31, 2025. The decrease is driven by the conversion and settlement of multiple loans during the fourth quarter of 2025 including the elimination of default interest associated with certain of the notes.

*Liquidity and Capital Resources*

Liquidity is a measure of a company's ability to generate funds to support its current and future operations, satisfy its obligations, and otherwise operate on an ongoing basis. On March 31, 2026, we had current assets totaling $619,058, including $362,088 of cash, $201,202 of accounts receivable, $27,517 of inventory, and $28,251 related to prepaid expenses and other current assets. At such date we had total current liabilities of $368,005 consisting of $218,136 in accounts payable, $19,688 in other current liabilities and $130,181 representing the current portions of outstanding loans, including a related-party loan. There were no balances classified as long-term liabilities on our condensed consolidated balance sheets.

On December 31, 2025, we had current assets totaling $883,009, including $636,157 of cash, $190,610 of accounts receivable, $35,790 of inventory, and $20,452 related to prepaid expenses and other current assets. At such date we had total current liabilities of $449,860 consisting of $326,431 in accounts payable, $17,858 in other current liabilities and $105,571 representing the current portions of outstanding loans and convertible notes. There was $96,218 of outstanding loan balances classified as long-term liabilities on our condensed consolidated balance sheets.

We used cash flows of $200,242 and $49,549 from operations during the three-month periods ending March 31, 2026 and 2025, respectively.

*Plan of Operation and Funding*

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. We had an accumulated deficit of $4,007,457 at March 31, 2026, generated a net loss of $103,906 for the three months ended March 31, 2026 and generated net income of $457,417 for the year ended December 31, 2025, principally as a result of a gain of $1,145,695 on the extinguishment of debt. We used cash in operations of $200,242 in the quarter ended March 31, 2026, and generated cash from operations of $178,118 in the year ended December 31, 2025. Despite the extinguishment of much of our debt, our history of losses combined with the amount of our revenues, raise substantial doubt about our ability to continue as a going concern for a reasonable period of time. Our continuation as a going concern is dependent upon our ability to generate positive cash flow from operations or obtain necessary equity or debt financing. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern.

Our working capital requirements are expected to increase in line with the growth of our business. We will likely increase our debt levels as we seek to expand our business. Existing working capital and anticipated cash flows are expected to be adequate to fund our operations over the next twelve months although no assurance to that effect can be given. If necessary, we would seek to supplement the amounts available to fund our operations through the issuance of debt or equity.

While we are focused on our business, we intend to continually explore our options to raise additional capital or, when available, borrow additional funds on terms which we believe are favorable to us. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders, could require the issuance of equity securities at prices we believe are below our true value and could cause the price of our common stock to decrease. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional borrowings could require that we grant the lenders a security interest or other rights that impede our ability to operate as we deem best for our shareholders. Further, any default under a loan agreement could result in an action which could force us to seek bankruptcy protection. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to maintain or expand our existing operations, take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business and adversely impact our financial results.

Our ability to obtain funds through the issuance of debt or equity is dependent upon the state of the financial markets at such time as we may seek to raise funds. The state of the capital markets may be adversely impacted by various risks and uncertainties, including, but not limited to future and current impacts of global events such as wars in the Ukraine, Israel and Iran, increases in inflation and other risks detailed in the risk factors sections detailed in our Annual Report on Form 10-K for the year ended December 31, 2025.

**ITEM 4. CONTROLS AND PROCEDURES**

*Evaluation of disclosure controls and procedures.*

As of March 31, 2026, our chief executive officer, who is also our chief financial officer conducted an evaluation regarding the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act). Based upon the evaluation of these controls and procedures as provided under the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control-Integrated Framework (2013), our chief executive officer/ chief financial officer concluded that our disclosure controls and procedures were ineffective as of the end of the period covered by this report. Many of these deficiencies stem from a lack of adequate personnel, including individuals with experience in financial reporting. Management has identified corrective actions for the weakness and will periodically reevaluate our ability to add personnel and implement improved review procedures as they can be supported by the growth in our business.

*Changes in internal controls.*

During the quarterly period covered by this report, no changes occurred in our internal control over financial reporting that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

**PART II - OTHER INFORMATION**

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, "Item 1. Description of Business, subheading Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025, which could materially affect our business, financial condition or future results.

**ITEM 6. EXHIBITS.**

(a) The following documents are filed as exhibits to this report on Form 10-Q or incorporated by reference herein. Any document incorporated by reference is identified by a parenthetical reference to the SEC filing that included such document.

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| | |
|:---|:---|
| Exhibit No. | Description |
| 3.1 | [Articles of Incorporation (incorporated herein by reference to Exhibit B to the Information Statement on Form 14-C filed June 21, 2021)](https://www.sec.gov/Archives/edgar/data/856984/000149315221014750/formdef14c.htm) |
| 3.2 | [By-Laws ((incorporated herein by reference to Exhibit C to the Information Statement on Form 14-C filed June 21, 2021).](https://www.sec.gov/Archives/edgar/data/856984/000149315221014750/formdef14c.htm) |
| 4.1 | [Certificate of Designation authorizing issuance of Series A Preferred Stock (incorporated herein by reference to Exhibit D to the Information Statement on Form 14-C filed June 21, 2021)](https://www.sec.gov/Archives/edgar/data/856984/000149315221014750/formdef14c.htm) |
| 4.2 | [Certificate of Designation authorizing the issuance of the Series A-2 Preferred Stock (incorporated herein by reference to Exhibit 3.1 to the Report on Form 8-K filed December 30, 2021)](https://www.sec.gov/Archives/edgar/data/856984/000149315221032849/ex3-1.htm) |
| 31 | [Certification of CEO and CFO pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](ex31.htm) |
| 32 | [Certification of CEO and CFO pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex32.htm)<br>|
|  | Incorporate by reference the Note Repurchase Agreement |

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| | |
|:---|:---|
| 101.INS | Inline XBRL Instance Document |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.

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| | |
|:---|:---|
| QHSLab, Inc. | QHSLab, Inc. |
| By: | */s/ Troy Grogan* |
|  | Troy Grogan |
|  | Chief Executive Officer and Chief Financial Officer |
| Date: | May 14, 2026 |

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## Ex-31

**Exhibit 31**

**CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER**

**AND PRINCIPAL FINANCIAL OFFICER PURSUANT TO RULE 13a-14(a) UNDER THE EXCHANGE ACT**

I, Troy Grogan, certify that:

1. I have reviewed this quarterly report of QHSLab, 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 issuer as of, and for, the periods presented in this report;

4. As the certifying officer 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 issuer 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 issuer, 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 issuer'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 issuer's internal control over financial reporting that occurred during the issuer's most recent fiscal quarter (the issuer's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the issuer's internal control over financial reporting; and

5. As the certifying officer I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the issuer's auditors and the audit committee of the issuer'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 issuer'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 issuer's internal control over financial reporting.

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| |
|:---|
| Date: May 14, 2026 |
| */s/ Troy Grogan* |
| CEO and CFO |

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## Ex-32

**Exhibit 32**

**(18 U.S.C. SECTION 1350)**

**CERTIFICATION OF 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

In connection with the quarterly report of QHSLab, Inc. (the "Company") on Form 10-Q for the period ended March 31, 2026 (the "Report"), as filed with the Securities and Exchange Commission on the date hereof, I, Troy Grogan, CEO and CFO of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

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| |
|:---|
| */s/ Troy Grogan* |
| Troy Grogan |
| CEO and CFO |
| Dated: May 14, 2026 |

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A signed original of this written statement required by Section 906 has been provided to QHSLab, Inc. and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.